The Privatisation Commission Board has officially recommended a reference price for the planned privatisation of First Women Bank Limited, marking a crucial step in the government’s broader economic reform and divestment strategy. This development signals growing momentum toward finalising a potential government-to-government deal with the United Arab Emirates, which has expressed interest through a nominated entity.
The decision emerged from the commission’s 240th meeting chaired by Muhammad Ali, who currently heads the Privatisation Commission. The board’s recommendation has been forwarded to the Cabinet Committee on Inter-Governmental Commercial Transactions for review and further action. The move aligns with the government’s push to accelerate privatisation in key financial sectors to attract foreign investment and stabilise public finances.
First Women Bank Limited, established in 1989, is a state-owned financial institution created to enhance women’s access to financial services. The Government of Pakistan holds approximately 82.64% of its shares, making it the majority stakeholder. Over the past several months, the bank has been in active negotiations with a UAE-nominated entity under the framework of the Inter-Governmental Commercial Transactions Act of 2022, which allows direct government-to-government transactions for state asset transfers.
The board highlighted that successful execution of this transaction could bring significant foreign direct investment into the country’s financial ecosystem. It is also expected to boost market confidence and send a positive signal to investors monitoring Pakistan’s economic reforms and privatisation initiatives. The deal, if completed, would mark one of the most significant G2G banking sector privatisations in recent years.
The commission also took another major decision during the session, approving the consortium led by Raiffeisen as the top-ranked bidder for appointment as the financial advisor for the planned privatisation of Hyderabad Electric Supply Company and Sukkur Electric Power Company. This step underscores the government’s strategy to expand privatisation beyond the banking sector, diversifying investment opportunities for international partners.
A negotiation committee has been formed to finalise the Financial Advisory Services Agreement with the Raiffeisen-led consortium, ensuring that the process adheres to international standards and best practices. Officials reiterated their commitment to transparency and efficiency throughout the privatisation programme, aiming to build trust among investors and financial institutions.
The Privatisation Commission emphasised that these strategic moves are part of a larger effort to support economic reforms, drive fiscal sustainability, and modernise critical infrastructure in the banking and energy sectors. This approach is designed to attract sustainable capital inflows, foster competition, and enhance operational efficiency in previously state-dominated industries.
The outcome of these negotiations and upcoming decisions by the Cabinet Committee will play a pivotal role in shaping Pakistan’s financial landscape. The success of this privatisation could serve as a model for future G2G transactions, strengthening economic ties between Pakistan and the UAE while advancing the government’s divestment goals.
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