By Staff Reporter
ISLAMABAD: United Arab Emirates-based International Holding Co. acquired an 82.64% stake in Pakistan’s First Women Bank Ltd. for Rs4.1 billion in a government-to-government deal, marking the South Asian nation’s first bank privatization under a bilateral framework.
The transaction, finalized Friday under Pakistan’s Inter-Governmental Commercial Transactions Act of 2022, underscores deepening economic ties between the two countries as Islamabad pushes to divest loss-making state-owned enterprises and lure foreign investment.
In addition to the purchase, IHC will inject fresh capital to meet the bank’s minimum capital requirement of Rs10 billion over five years. FWBL’s equity stood at Rs3.2 billion as of December 2024, leaving a shortfall of Rs6.8 billion.
A signing ceremony in Islamabad was attended by Prime Minister Shehbaz Sharif, Chief of Army Staff Field Marshal Asim Munir, Deputy Prime Minister Ishaq Dar, and senior government and military officials. Also present were Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, chairman of 2PointZero, and representatives from IHC.
Sharif described the deal as an early sign of closer economic ties between Pakistan and the UAE and suggested it would pave the way for further bilateral investments. He linked the transaction to Pakistan’s broader privatization efforts, aimed at offloading loss-making state-owned enterprises and attracting foreign capital.
The prime minister said the transaction was facilitated through direct engagement between the two governments, with Deputy Prime Minister Dar and Adviser to the Prime Minister on Privatization Muhammad Ali leading Pakistan’s side.
The federal cabinet had earlier approved the divestment of the government’s entire stake in FWBL, a figure yet to be formally disclosed.
FWBL, established in 1989 by then-Prime Minister Benazir Bhutto with a mandate to support women’s financial inclusion, operates 42 branches across the country and offers services in retail, small- and medium-sized enterprise, and corporate banking. The bank has struggled with capital adequacy and operational challenges in recent years, prompting its inclusion in the government’s privatization list.
According to an official statement, the company plans to modernize the bank’s infrastructure through automation, artificial intelligence, and digital banking tools. A rebranding exercise is also expected, signaling a shift in the bank’s mandate to serve a broader segment of the population.
Syed Basar Shueb, chief executive of IHC, said the acquisition reflects confidence in Pakistan’s financial sector and reform agenda, and aligns with IHC’s strategy of investing in high-growth markets. “We look forward to supporting the bank’s modernisation through technology integration and advanced AI-driven financial decision-making.”
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