Amid a move towards privatisation, Pakistan approves the sale of First Women Bank to a UAE-based company.
A significant step in Pakistan’s long-delayed privatisation drive was taken on Wednesday when the Cabinet Committee on Inter-Governmental Transactions approved a bid from a United Arab Emirates entity owned by International Holding Company (IHC) for the sale of the state-owned First Women Bank Limited (FWBL).
The FWBL was founded in 1989 with the goal of advancing women’s financial inclusion and economic engagement as a development-oriented financial institution. It was established to give women specialised credit, savings, and entrepreneurial services in order to address their restricted access to traditional banking channels.
Pakistan’s Privatisation Commission recommended a reference price to the federal cabinet for final approval last week, completing a crucial procedural step in the deal.
According to an official release, “The Committee approved the bid offer, which was higher than the reference price, for the privatisation of First Women Bank Limited (FWBL).” “This significant milestone increases FDI [foreign direct investment] inflows and strengthens investor confidence in Pakistan by paving the way for a successful privatisation and a G2G [government-to-government] transaction with the UAE’s nominated entity owned by International Holding Company (IHC).”
The meeting’s chair, Deputy Prime Minister Ishaq Dar, praised the Privatisation Commission’s work and restated the government’s dedication to economic reform and openness in the privatisation process.
In recent years, the bank’s profitability has decreased, and its growth trajectory has been strained. The bank’s mission was to empower women by providing them with access to loans, savings, and business opportunities.
Early this year, the government took action to sell off its share of the organisation in response to persistent pressure from the International Monetary Fund (IMF) to lessen the state’s economic influence through a $7 billion loan package.