ISLAMABAD: The Competition Commission of Pakistan (CCP) has played an important role in facilitating Foreign Direct Investment (FDI) into Pakistan by reviewing and approving mergers and acquisitions that brought in Rs 29.6 billion during 2024.
This highlights the CCP’s growing influence in shaping the country’s competitive landscape. Throughout the year, the Commission processed 64 pre-merger applications spanning key sectors such as banking & financial services, oil and gas, consumer goods, pharmaceutical, energy, chemical and minerals, media, food & beverage, fertilizer, it services, and automotive.
These strategic mergers are expected to enhance competition, market dynamics, and investor confidence in the Pakistani economy.
Jul-Nov FDI soars 31pc to $1.124bn YoY
A standout transaction that reflects this growth was M/s Aramco Asia’s acquisition of a 40 percent stake in GO Petroleum.
Approved in April 2024, this deal marked Aramco’s entry into Pakistan’s fuel retail market, signaling a strong belief in the country’s economic potential.
Aramco’s commitment to Pakistan through this acquisition, amounting to significant FDI, serves as a testament to its role in fostering market growth and encouraging other international players to explore Pakistan as a valuable market.
In another significant deal, MNT–Halan Pak B.V., a holding company of a Dutch-Egyptian financial market group, acquired M/s Advans Pakistan Microfinance Bank Limited.
The CCP granted approval for this deal in March, subject to certain conditions. The acquisition is notable not only for its size but also for the positive impact it is expected to have on Pakistan’s financial services sector, as it opens avenues for modern financial technology and increased market competition.
Additionally, M/s Euricom S.P.A., an Italian agribusiness leader, acquired 50 percent shareholding in M/s. Fatima Euricom Rice Mills (Pvt) Ltd. This acquisition, approved by the CCP, is a major step in bringing foreign investment into Pakistan’s agriculture sector, underscoring the country’s untapped agricultural potential and its growing importance in the global agribusiness market.
The CCP also approved the 50 percent acquisition of Total Parco Pakistan Ltd (TPPL) by Aquashore SA, part of Switzerland’s Gunvor Group, in November. This deal highlights the expanding international interest in Pakistan’s energy sector, aligning with the country’s long-term goals of energy diversification and stability.
Another major transaction saw Wafi Energy Holding Limited, a UAE-based subsidiary of Saudi’s Asyad Holding, acquiring 77.42 percent shareholding and control of Shell Pakistan Limited. This acquisition, approved in July 2024, reinforces the strong ties between Pakistan and the Gulf countries while marking another milestone in Pakistan’s energy market development.
The ongoing major transaction under review by the CCP is the second-phase assessment of the acquisition of Telenor Pakistan (Private) Limited and M/s. Orion Towers Private Limited by PTCL. This complex and high-stakes merger is set to reshape the future of Pakistan’s telecommunications sector, with significant implications for market competition and consumer dynamics.
All eyes are on the CCP as it prepares to issue its final order on this landmark deal, which could have far-reaching effects on the industry. Beyond these mergers, the CCP also granted 56 exemption certificates across sectors such as pharmaceuticals, energy, automotive, consumer goods, ride hailing & delivery services, food & beverage, banking & financial services, tobacco, agricultural products, telecommunications, aviation, and transport & logistics. These exemptions, granted after careful evaluation, are designed to encourage market competition, promote technological progress, and enhance the overall economic and consumer benefits.
Copyright Business Recorder, 2025
Comments