Pakistan likely to sell majority stake in First Women Bank to UAE

The Pakistan government is likely to sell a majority stake in First Women Bank to the United Arab Emirates, subject to successful negotiations and finalization of terms, government officials said.

Officials stated that Pakistan is expected to sell an 82.64% stake in First Women Bank Limited to the UAE under a government-to-government agreement next month.

This would mark the fifth attempt to privatize the bank, and officials believe the government might finally succeed this time -- contingent on the finalization of terms and conditions.

Privatization Secretary Usman Bajwa recently informed the National Assembly’s Privatization Committee that the UAE had formally expressed interest in acquiring the government's stake earlier this year. The federal cabinet approved the transaction on February 6, 2024.

Bajwa also revealed that the privatization of three major power distribution companies -- HESCO, SEPCO, and PESCO -- is progressing.

In addition, the government plans to sell a majority stake in the national airline. The deadline for submitting expressions of interest has recently been extended to June 19.

First Women Bank Limited (FWBL), established in 1989, currently operates 42 branches across 24 cities. The Ministry of Finance holds the majority share, while Habib Bank Limited and MCB Bank each own 5.78%. Smaller stakes are held by Allied Bank, National Bank of Pakistan, and UBL.