The Competition Commission of Pakistan has released a comprehensive study on the country’s civil aviation sector, highlighting structural weaknesses, stagnant domestic travel, and growing reliance on foreign airlines while recommending a national aviation roadmap and pro-competition reforms.
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The Competition Commission of Pakistan (CCP) has issued a detailed market study examining the structure, performance, and regulatory framework of Pakistan’s civil aviation sector, concluding that significant structural reforms are needed to strengthen competition and long-term sustainability.
According to the report, Pakistan’s aviation industry has served around 340 million passengers over the past two decades. During this period, annual passenger traffic increased from 12.8 million in 2006–07 to 24.3 million in 2024–25.
However, the study notes that the growth has been largely driven by international travel, while domestic air passenger traffic has remained relatively stagnant. The imbalance reflects broader structural challenges in the sector, including regulatory complexity, governance gaps, and limited market expansion within the domestic aviation segment.
The report highlights that Pakistan’s air passenger market remains highly concentrated, with a small number of domestic carriers — including Pakistan International Airlines, Airblue, Air Sial, SereneAir, and Fly Jinnah — serving most of the local market. At the same time, international passenger flows are dominated by large Gulf-based carriers such as Emirates, Qatar Airways, Saudia, flydubai, and Air Arabia.
The CCP study notes that Pakistani airlines face structural disadvantages due to financial constraints, higher operating costs, limited fleet capacity, and currency volatility. In contrast, many foreign carriers benefit from strong financial backing, integrated hub networks, and favorable operating conditions, allowing them to capture a significant share of international passengers traveling to and from Pakistan.
The report also identifies institutional coordination issues and policy inconsistency as key challenges affecting the sector’s development. Fragmented governance, opaque slot allocation practices, and complex regulatory procedures have created barriers for new entrants and limited competition in certain market segments.
To address these challenges, the CCP has recommended the development of a comprehensive national civil aviation roadmap to guide long-term sector reforms. The proposed framework aims to enhance competitive neutrality, facilitate market entry, and improve consumer welfare.
Among other recommendations, the commission has proposed encouraging low-cost airline operations, expanding local aircraft maintenance and repair capabilities, and promoting participation of small and medium enterprises in aviation-related services.
The study also calls for modernization of major airports, particularly in Karachi and Lahore, while recommending infrastructure upgrades and expansion at regional airports such as Gilgit and Skardu to improve connectivity and support tourism growth.
The CCP said the draft report has been placed on its website for public consultation, inviting feedback from stakeholders before the final version is released.
