In a landmark development for Pakistan’s banking and investment landscape, the International Holding Company (IHC), based in the United Arab Emirates, has acquired an 82.64 percent stake in First Women Bank Limited (FWBL) for Rs4.1 billion. The strategic acquisition marks the country’s first bank privatization executed under a bilateral arrangement, reflecting growing economic cooperation between Pakistan and the UAE.
The transaction was concluded under the Inter-Governmental Commercial Transactions Act 2022, which enables direct government-to-government commercial deals to accelerate privatization and foreign investment. The deal’s signing ceremony was attended by Prime Minister Shehbaz Sharif, Chief of Army Staff Asim Munir, Deputy Prime Minister Ishaq Dar, senior officials, and UAE dignitaries, including Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, chairman of 2PointZero, along with IHC representatives.
Speaking at the signing ceremony, Prime Minister Shehbaz Sharif called the transaction an early indicator of deepening economic ties between the two countries. He highlighted that this acquisition aligns with Pakistan’s broader privatization drive to divest underperforming state-owned enterprises and attract strategic foreign capital. The prime minister acknowledged the efforts of Deputy Prime Minister Ishaq Dar and Adviser to the Prime Minister on Privatisation Muhammad Ali for their key role in leading negotiations on Pakistan’s behalf.
Founded in 1989 by then Prime Minister Benazir Bhutto, FWBL was established with a core mission of promoting women’s financial inclusion and economic empowerment. The bank currently operates 42 branches nationwide, providing services in retail, SME, and corporate banking. In recent years, however, the bank has faced persistent operational challenges and capital adequacy concerns, resulting in its inclusion on the government’s privatization list.
Following the acquisition, IHC is expected to inject fresh capital to meet the Minimum Capital Requirements and undertake a comprehensive modernization of the bank’s infrastructure. The company plans to implement advanced technologies such as artificial intelligence, automation, and digital banking tools to transform the bank’s operational framework. A rebranding initiative is also on the table, signaling a shift from FWBL’s niche positioning to a broader, more inclusive banking model designed to serve a wider customer base.
Syed Basar Shueb, CEO of IHC, described the acquisition as a strategic investment in Pakistan’s growing financial services sector. He emphasized that the move reflects IHC’s confidence in Pakistan’s banking reforms and its economic potential. “We look forward to supporting the bank’s modernization through technology integration and advanced AI-driven financial decision-making,” he said.
This transaction also holds broader economic significance as it underscores the strengthening of UAE-Pakistan economic relations. By facilitating a direct government-to-government transaction, the Inter-Governmental Commercial Transactions Act has proven instrumental in fast-tracking strategic privatization initiatives.
Industry observers believe this development could pave the way for further foreign investments in Pakistan’s financial sector, encouraging technological innovation and expanding access to digital banking services. For FWBL, the acquisition represents not only an opportunity to address legacy challenges but also a new chapter focused on growth, innovation, and financial inclusion.
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