The Competition Commission of Pakistan (CCP) has highlighted the urgent need for a structural reset in the country’s civil aviation sector, emphasizing that the industry “cannot be governed in silos.” The findings were presented in the report titled “Competition in the Skies: Pakistan’s Civil Aviation Market Assessment,” which provides a detailed, evidence-based review spanning nearly two decades of data from 2006 to 2025, supplemented by stakeholder consultations.
According to the report, Pakistan’s civil aviation sector has served close to 340 million passengers over the review period, with annual traffic rising from 12.8 million in 2006–07 to 24.3 million in 2024–25, marking an overall growth of 89%. This growth, however, was largely fueled by the international segment, which recorded a compound annual growth rate (CAGR) of approximately 5.46%, while domestic passenger traffic remained nearly stagnant at 0.19% CAGR.
Despite the increase in passenger volumes, the CCP notes that the sector’s structural depth and competitive strength have lagged, particularly relative to the country’s population growth and long-term economic potential. The report criticizes the absence of a unified national aviation vision, describing civil aviation in Pakistan as being treated as an administrative function rather than a strategic economic sector.
Key structural gaps identified include fragmented governance, inconsistent policy across regulatory, fiscal, and financial institutions, frequent airline exits, financial fragility among local carriers, underutilized airports, and growing dependence on Gulf-based airlines. The report also notes competitive asymmetries due to disparities between domestic and foreign state-backed players, and vulnerabilities arising from regional tensions and restricted airspace.
To address these challenges, the CCP calls for a National Civil Aviation Roadmap and a long-term phased Reform & Stabilization Plan. These measures aim to build a resilient, investment-ready ecosystem integrating air travel, tourism, financing, and commercial services while ensuring regulatory clarity, financial sustainability, competitive neutrality, and strategic policy coordination.
The report prioritizes modernizing major airports, including Karachi and Lahore terminals, along with secondary airports like Skardu and Gilgit. Recommendations also include implementing e-gates, digital slot allocation, a unified aviation data hub, and real-time Integrated Business Management System reconciliation guided by demand-based planning.
Other proposals focus on sector-specific financing and insurance, predictable FX and fee policies, tax rationalization, self-sustaining airport commercial operations with private sector participation, evidence-based bilateral engagement, domestic capacity building, promotion of low-cost carriers, SME involvement, ancillary service development, and local maintenance, repair, and operations (MRO) capabilities.
The CCP emphasizes that competitive neutrality and market entry openness are critical while reassessing historical privileges and maintaining strategic oversight of critical aviation assets. Collectively, these measures aim to transition Pakistan’s civil aviation sector from mere volume growth to a structurally resilient, competition-driven ecosystem capable of supporting economic connectivity, trade, and mobility.
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