Pakistan has officially approved a UAE-backed bid for the privatization of First Women Bank Limited (FWBL), marking a decisive move in its ongoing economic reform agenda. The bid was submitted by an entity nominated by the International Holding Company, which offered an amount higher than the set reference price, signaling renewed interest and confidence from foreign investors in Pakistan’s banking sector.
The decision came during a key meeting of the Cabinet Committee on Inter-Governmental Transactions (CCoIGT), chaired by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar. The approval is considered a critical development in the government’s broader strategy to accelerate privatization efforts, ensure transparency, and encourage foreign direct investment through government-to-government collaboration.
Officials confirmed that both sides are scheduled to sign the final agreement on Friday at the Prime Minister’s Office, solidifying the UAE’s participation in Pakistan’s privatization landscape. This transaction is part of the state’s efforts to reform loss-making entities, strengthen financial discipline, and attract sustainable capital flows into key economic sectors.
Addressing the committee, Ishaq Dar praised the Privatization Commission of Pakistan and relevant ministries for their coordinated efforts in finalizing the deal. He emphasized that this milestone reinforces the government’s resolve to restructure state-owned institutions and improve governance through credible partnerships. He added that transparent privatization is essential to restoring investor trust and creating space for private sector-led economic growth.
The meeting was attended by federal ministers for petroleum and privatization, the minister of state for railways, as well as senior officials from the Cabinet Division, Privatization Commission, and other concerned departments. The gathering highlighted the strategic importance of this privatization, which is expected to serve as a model for future transactions in the financial sector.
The privatization of First Women Bank Limited carries symbolic and economic significance. Established to support and empower women entrepreneurs, the bank has faced persistent operational and financial challenges in recent years. By approving a UAE-backed bid, the government aims to revitalize the institution, bring in new capital, and integrate modern banking technologies and practices through strategic foreign partnerships.
The transaction also aligns with Pakistan’s broader push to attract foreign direct investment, diversify its economic base, and reduce the burden of underperforming state-owned entities on public finances. By engaging with UAE-based investors, the government is signaling its commitment to market reforms, fiscal consolidation, and sustainable economic development.
This privatization deal comes at a time when Pakistan is under pressure to accelerate structural reforms, including privatization, to meet its commitments under its economic stabilization and growth agenda. Observers believe that this development could open doors for further foreign investment in Pakistan’s financial sector, paving the way for modernization, competition, and improved service delivery.
The signing ceremony will formalize the transaction and is expected to be followed by an implementation roadmap, ensuring a smooth transition of ownership and operational control.
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