Islamabad:

The Competition Commission in Pakistan (CCP) has approved the application for pre -revenue to create a joint venture between National Logistics Corporation (NLC) and DP World Logistics FZE (DWLF).

The investment, relieved by Special Investment Facilitation Council (SIFC), aims to improve Pakistan’s logistics and freight industry while ensuring a fair competition in the market, a press release issued here on Sunday said.

The transaction involves NLC, which acquires an equity share of 60 percent in joint venture, with DWLF, which has the remaining 40 percent.

The venture aims to improve Pakistan’s road logistics sector by utilizing NLC’s domestic expertise and DP World’s Global Supply Chain Solutions.

The relevant market for the transaction was identified as ‘Road Freight Logistics’, a key segment in Pakistan’s trade and transport sector.

After a detailed competition assessment, CCP determined that the transaction does not result in a significant reduction in the competition or establishment of a dominant market position.

The review also considered horizontal overlaps in road logistics and potential vertical integration effects.

CCP’s analysis concluded that the market remains competitive with multiple players to ensure continued competition.

Joint Venture highlights Pakistan’s growing appeal for foreign investment in logistics.

It is expected to improve the infrastructure, lower transport costs and increase Pakistan’s trade competitiveness in the region.