ISLAMABAD (The COW News Digital) The federal cabinet of Pakistan has approved the sale of 100 percent government shares in the First Women Bank Limited (FWBL) to a United Arab Emirates (UAE)–nominated entity for $14.6 million (approximately Rs4.1 billion) under a negotiated agreement, marking a key step in the country’s ongoing privatization drive.
The approval came during a cabinet meeting chaired by Prime Minister Shehbaz Sharif on Thursday. Sources confirmed that the UAE government–designated buyer is International Holding Company (IHC) — one of the largest conglomerates in the Gulf region, chaired by Sheikh Tahnoon bin Zayed Al Nahyan.
Under the terms of the deal, the buyer has been granted up to five years to inject at least Rs10 billion in capital to meet the regulatory requirements. As of December 2024, FWBL’s equity stood at Rs3.2 billion, meaning the new owner must add Rs6.8 billion to fulfill the capital adequacy condition.
According to official sources, IHC valued the bank at around Rs5 billion ($17.7 million), giving the Pakistani government Rs4.1 billion ($14.6 million) for its 82.64 percent stake. The transaction was approved under the Intergovernmental Commercial Transactions Act, 2022, which allows government-to-government deals without competitive bidding. However, this exemption has sparked quiet debate among legal experts since the Privatization Ordinance 2001 mandates open bidding for state asset sales.
The formal signing ceremony for the sale agreement is expected to take place on Friday in the presence of Prime Minister Sharif. Notably, IHC is a private company, not a state-owned enterprise, but it was included under the IGCT framework since the law only requires a foreign government’s nomination, not direct ownership.
A senior government official described the sale as “small in scale but significant in symbolism,” citing IHC’s global financial standing, with total assets exceeding $240 billion and a portfolio spanning over 1,300 subsidiaries in sectors such as asset management, healthcare, real estate, technology, and energy.
The approved sale price of Rs4.1 billion is higher than the Rs3.7 billion reference rate earlier endorsed by the Cabinet Committee on Intergovernmental Commercial Transactions (CCoIGCT).
Established in 1989, the First Women Bank was founded to promote women’s financial inclusion but later expanded into general commercial banking.
While the privatization commission has yet to offload major loss-making enterprises — including power distribution companies and Pakistan International Airlines (PIA) — officials expressed optimism that the long-delayed PIA deal may be finalized by late November 2025.
