Mergers and acquisitions (M&A), in 2025, have delivered a decisive rebound worldwide. Global deal value surged by 43 per cent to $4.7 trillion, 20pc above the 10-year average, making it the second-highest record in the third and fourth quarters of 2025. Deals exceeding $10 billion jumped 120pc year-on-year and accounted for nearly one-third of the total global value.
Analysts point out that companies are not acquiring stakes in other firms merely for increased growth. They are repositioning entire platforms around artificial intelligence, infrastructure and capacity gaps that organic investment cannot close fast enough.
In Pakistan’s fast-evolving corporate landscape, M&As have become key growth strategies for companies seeking expansion, diversification or market consolidation. From large-scale conglomerates in Karachi to emerging startups across the country, M&As enable businesses to combine strengths and unlock value. An M&A will typically take three to six months, depending on the complexity of the transaction, regulatory approvals and due diligence.
M&As are primarily regulated by the Companies Act 2017, the Competition Act 2010, and the Competition (Merger Control) Regulation of 2016. Key regulators include the Securities and Exchange Commission of Pakistan for corporate procedures and the Competition Commission of Pakistan for market impact, with mandatory merger notifications if assets or turnovers exceed the specified rupee thresholds. The central bank only comes into the picture when foreign exchange is involved in any M&A transaction.
With the continuing war in the region, one cannot rule out the possibility of several companies struggling to survive, widening the market for M&As
In an earlier phase, M&As in the country’s banking sector were largely driven by the State Bank of Pakistan’s regulatory requirements aimed at strengthening capital adequacy, promoting stability, and fostering modernisation. This was also in keeping with global trends.
The larger players lead deals across technology, energy, utilities, finance, services etc. M&A strategies are being updated with the help of advanced technology and experiences gained from past failures.
Avenues are also opened for both local and foreign companies when foreign firms exit developing countries to consolidate their businesses nearer home.
At times, the majority stakes acquired in companies running advanced technologies are allowed to retain their independent identity, and incentives are offered to retain highly qualified personnel.
In the prevailing global and domestic business environment, M&A deals are luring stakeholders from unrelated sectors, not necessarily in the same line of business. For example, the CCP recently approved Maple Leaf Cement factory’s proposed acquisition of additional shares in Faysal Bank of Pakistan; earlier, Faysal Bank acquired a majority stake in Royal Bank of Scotland, aimed at a merger.
M&A deals are now luring stakeholders from unrelated sectors; for example, the CCP recently approved Maple Leaf Cement factory’s proposed acquisition of additional shares in Faysal Bank of Pakistan
This changing investment trend was more pronounced in the Pakistan International Airlines (PIA) privatisation process. Led by the Arif Habib group, the winning consortium includes a shareholding by Fatima Fertiliser (34.1pc), Fauji Fertiliser (33.9pc), Lake City (16pc), and the City School with the Aqeel Karim Dhedhi group (16pc). The consortium, which had earlier bid for a 75pc stake in the airline, has announced plans to acquire the remaining 25pc government stake.
M&As are also driven by two sets of companies, one with surplus funds, while their counterpart generally faces extreme challenges in a transforming, disorderly world.
Fertiliser sector companies listed on the stock exchange recorded profitability of Rs141.1bn in 2005, up by 10pc year-on-year due to an increase in urea off-takes, higher other income and lower miscellaneous charges. Moreover, fertiliser companies disbursed Rs111.8bn to their shareholders as dividends during 2025. On the other hand, PIA’s shrinking operations and mounting losses are well known.
With the continuing war in the region, one cannot rule out the possibility of a number of companies struggling to survive, widening the market for M&As. It may also be acknowledged that macroeconomic stability and economic growth can provide further stimulus for M&A deals.
However, there is no clarity yet on how the long-mismanaged PIA will be run under private management. The consultants who advised the Arif Habib group on acquiring majority stakes in the PIA are expected to help run the airline.
If the war continues and oil prices remain around $100 or higher, Pakistan could face a GDP hit of 1–1.5pc, a figure that may worsen if the regional conflict persists beyond six months, warns former finance minister Hafiz Pasha. And the external sector may face a negative impact of $12-14bn.
Published in Dawn, The Business and Finance Weekly, March 23rd, 2026