KEY POINTS
- Competition Commission of Pakistan (CCP) releases comprehensive draft report on civil aviation market
- Passenger traffic doubled over 19 years, driven largely by international travel; domestic growth stagnates
- Report identifies fragmented governance, financial fragility of carriers, and overdependence on foreign airlines
- Recommends National Civil Aviation Roadmap, phased reform, airport modernisation, digitalisation, and financing frameworks
- Draft report open for stakeholder comments before final publication
ISLAMABAD: The Competition Commission of Pakistan (CCP) has unveiled a draft report titled “Competition in the Skies: Pakistan’s Civil Aviation Market Assessment,” marking the first evidence-based study spanning nearly two decades (2006–2025).
The report evaluates sector performance, governance, and competition dynamics through historical data and stakeholder consultations.
Over the review period, Pakistan’s civil aviation sector served nearly 340 million passengers, with annual traffic rising from 12.8 million in 2006–07 to 24.3 million in 2024–25—an 89 per cent increase.
This reflects a moderate overall compound annual growth rate (CAGR) of 3.42 per cent over 19 years.
The increase was driven almost entirely by international travel (CAGR ~5.46%), while domestic passenger growth remained nearly stagnant (CAGR ~0.19%).
Despite expanding volumes, the report notes that Pakistan’s civil aviation sector has not kept pace with the country’s population growth or long-term economic potential.
“Civil aviation cannot be governed in silos,” the CCP emphasises, calling for a unified national aviation vision that treats the sector as a strategic economic asset rather than a purely administrative function.
The study identifies structural gaps, including fragmented governance, inconsistent regulatory and fiscal policies, frequent airline exits, weak financing frameworks, underutilised airports, and rising reliance on Gulf-based carriers.
Competitive asymmetry also persists due to differences in regional economic factors and the support enjoyed by foreign airlines.
The report highlights the strategic importance of civil aviation for economic connectivity, trade, and mobility.
Regional tensions and restricted airspace further underscore Pakistan’s vulnerability and the urgent need for a strong, self-reliant domestic aviation sector.
To address these challenges, the CCP recommends a National Civil Aviation Roadmap and a phased Reform & Stabilisation Plan to build a resilient, investment-ready ecosystem. Key measures include:
Modernisation of major terminals in Karachi and Lahore, and development of secondary airports such as Skardu and Gilgit
Digital enhancements, including e-gates, slot allocation systems, and a unified aviation data hub
Financial instruments tailored for aviation and tourism, predictable foreign exchange and fee policies, and tax rationalisation
Promotion of low-cost carriers, domestic SMEs, local maintenance, repair, and overhaul (MRO) services, and self-sustaining commercial operations with private participation
Evidence-based bilateral engagement and domestic capacity building to reduce reliance on foreign carriers
The report underscores the importance of competitive neutrality, reassessment of historical privileges, open market entry, and strategic oversight of critical aviation assets.
The CCP aims for these reforms to transition Pakistan’s aviation sector from mere volume growth to structurally resilient, competition-driven development.
The draft report is now available on the CCP website for stakeholder consultation, with the final version to be published following feedback.
