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ISLAMABAD: Pakistan is poised to conclude the FWBL privatisation process next month, transferring an 82.64% stake in First Women Bank Limited to the United Arab Emirates (UAE) under a government-to-government agreement, officials informed the National Assembly Standing Committee on Privatisation.
Ghe UAE had formally expressed interest earlier this year, and the cabinet greenlit the transaction on February 6, 2024, Secretary Privatisation Usman Bajwa told the panel. This marks the fifth attempt at FWBL privatisation, following unsuccessful efforts in 1994, 1996, 2018, and 2021.
Established in 1989, FWBL currently operates 42 branches in 24 cities. The Ministry of Finance holds a majority stake, while Habib Bank Limited and MCB Bank each own 5.78%. Other minor shareholders include Allied Bank, National Bank of Pakistan, and UBL.
Privatisation Updates Extend to Power Sector
Bajwa also briefed the committee on the ongoing privatisation plans for three major power distribution companies — Hesco, Sepco, and Pesco. A Request for Proposal (RFP) to hire financial advisers is expected next month, being developed in collaboration with the Power Division and the World Bank.
Lawmakers criticised Pesco over Rs143 billion in losses during the last fiscal year and its ballooning liabilities of Rs620 billion, citing technical losses of 35%. Some even called for the company’s closure. In response, Pesco’s CEO projected a Rs20 billion cut in losses this fiscal year.
Meanwhile, Hesco was grilled over extended power outages. Its CEO blamed the issues on line losses, though lawmakers contested this, stating that loadshedding still averages 10 hours daily. The CEO noted that 200 of 650 feeders are now free from loadshedding, with four more to be added by July.
Committee Chairman Farooq Sattar demanded the finance secretary appear before the panel, pressing the Finance Division to release Rs6 billion by September, with remaining dues expected in the next fiscal year. “This is public trust; the Finance Ministry must return it,” he said.
