Prime Minister Shehbaz Sharif on Friday hailed the privatisation of First Women Bank Limited (FWBL) as “the first drop of rain” in Pakistan’s renewed privatisation drive, calling it a milestone in deepening economic and investment ties with the United Arab Emirates under the government-to-government (G2G) framework.
At a signing ceremony in Islamabad between the UAE-based International Holding Company (IHC) and the Government of Pakistan, the premier said the landmark transaction marked “the beginning of a long and fruitful journey” to revitalise state-owned enterprises and attract foreign investment.
“This agreement marks the start of a promising partnership. More projects are already in the pipeline,” he said, reaffirming his government’s commitment to restructuring loss-making public entities and opening new doors for private-sector-led growth.
The event marked the official transfer of a majority stake in FWBL to IHC — the first-ever G2G transaction in Pakistan’s banking sector.
The UAE delegation was led by Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, Chairman of 2PointZero, and attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, COAS Field Marshal Syed Asim Munir, cabinet members, and senior officials from both countries.
Shehbaz welcomed Sheikh Zayed bin Hamdan to Pakistan, recalling the “everlasting friendship” of UAE leaders, including the late Sheikh Zayed bin Sultan Al Nahyan and current President Sheikh Mohammed bin Zayed, “whose heart beats for the people of Pakistan.”
He said the agreement reflected the UAE’s confidence in Pakistan’s economy and its commitment to joint ventures in banking and trade. “This is the start of a journey of happiness, prosperity and shared growth between two brotherly nations,” he added, expressing hope for more such signing ceremonies “not in years, but in weeks.”
Read: Cabinet body raises questions on FWBL sale
Adviser on Privatisation Muhammad Ali said the deal took over a year and a half to conclude, underscoring the government’s seriousness in reviving the privatisation programme. The premier credited the “determined and focused” leadership of Ishaq Dar and Muhammad Ali for steering the process to completion (Copy 1, 3).
IHC to inject fresh capital
The federal cabinet had earlier approved the divestment of the government’s entire stake in FWBL, reportedly valued at $14.6 million (approximately Rs 4.1 billion). However, the figure has yet to be officially confirmed. Under the agreement, IHC will also meet the minimum capital requirement of Rs10 billion over five years. As of December 2024, the bank’s equity stood at Rs3.2 billion, requiring an additional Rs6.8 billion to meet regulatory requirements.
Founded in 1989, FWBL operates 42 branches nationwide, providing retail, SME and corporate banking services. IHC plans to boost the bank’s capital base, expand operations, and modernise services through AI-driven technology and digital banking.
Planned upgrades include core banking system modernisation, automation, AI and analytics integration, talent development, and rebranding to promote financial inclusion.
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“Our investment in First Women Bank reflects IHC’s confidence in Pakistan’s financial sector and our shared vision for sustainable growth,” said Syed Basar Shueb, CEO of IHC. “We look forward to supporting the bank’s modernisation through technology and AI, driving innovation and long-term value creation,” he added.
The agreement — signed by Syed Basar Shueb and Nishita Mohsin on behalf of the Government of Pakistan — is the first bank privatisation under the Inter-Governmental Commercial Transactions Act 2022, symbolising expanding UAE–Pakistan economic cooperation.
