The federal government has decided to privatise its 82.64 percent stake in First Women Bank Limited (FWBL) through a government-to-government arrangement with the UAE-based International Holding Company (IHC), in what is expected to be a landmark transaction for the country’s financial sector. The deal is expected to close by October 22, 2025, and aims to inject fresh capital into the bank, strengthen its operational structure, and boost investor confidence in Pakistan’s broader privatisation programme.
According to official reports, this is not merely a sale of state assets but a revival strategy designed to reposition FWBL as a dynamic player in Pakistan’s financial landscape. Established in 1989, the bank currently operates 42 branches in 24 cities, with a focus on financial inclusion and women’s empowerment. The planned transaction is expected to give the institution a new direction, supported by capital infusion and international management expertise.
This development is part of a larger privatisation initiative approved by the government earlier this year, under which 24 state-owned enterprises are scheduled for divestment. These include major institutions such as Pakistan International Airlines (PIA), power companies, and several financial entities. The government views these moves as essential steps toward reducing fiscal burdens, improving governance, and opening the economy to foreign strategic partners.
The National Assembly Standing Committee on Privatisation was briefed that the transaction is on track for completion by next month under a G2G agreement. Secretary Privatisation Usman Bajwa informed the committee that the UAE firm had expressed formal interest earlier this year, leading to cabinet approval of the deal on February 6, 2024.
The upcoming sale marks the fifth attempt to privatise FWBL, after previous efforts in 1994, 1996, 2018, and 2021 did not materialise. This renewed push reflects a more structured and strategic approach from the government, with direct government-to-government engagement aimed at ensuring completion and long-term sustainability of the transaction.
FWBL’s ownership structure currently consists of a majority stake held by the Ministry of Finance. In addition, Habib Bank Limited and MCB Bank each hold 5.78 percent shares, while smaller stakes are held by Allied Bank Limited, National Bank of Pakistan, and United Bank Limited.
Privatisation experts suggest that the deal with IHC could bring much-needed capital, operational reforms, and digital transformation to the bank. It is expected to position FWBL to compete more effectively in a rapidly evolving financial services landscape. Additionally, the transaction could send a strong signal to foreign investors about Pakistan’s commitment to financial sector reforms and ease of doing business.
For policymakers, this move also aligns with efforts to attract foreign investment and support structural economic adjustments. By shifting control to a strategic foreign investor, the government aims to enhance efficiency, transparency, and competitiveness in the banking sector.
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