The federal cabinet has approved the sale of First Women Bank to a UAE investor for $14.6 million (Rs4.1 billion), marking the first privatization under Prime Minister Shehbaz Sharif’s government. The deal, finalized under the Inter-Governmental Commercial Transactions (IGCT) Act, 2022, grants the buyer five years to meet the Rs10 billion minimum capital requirement.
Officials confirmed that the cabinet approved the sale of its 82.64% stake in First Women Bank to the International Holding Company (IHC), a UAE government-nominated entity chaired by Sheikh Tahnoon bin Zayed Al Nahyan. Despite being a small transaction, the deal holds strategic value due to the buyer’s global investment portfolio across finance, healthcare, and real estate.
The Privatisation Commission has not issued an official statement, but a senior government official described the sale as “a small ticket item but an important development due to the buyer’s market position.” The buyer valued the bank at Rs5 billion ($17.7 million), meaning Pakistan will receive $14.6 million for its 82.64% share.
The sale has been concluded under a government-to-government (G2G) framework allowed by the IGCT law, which permits negotiated sales involving foreign governments. While the IHC is not majority-owned by the UAE government, the law allows deals as long as a foreign government is involved in the process.
The IHC manages assets worth around $240 billion across 1,300 subsidiaries in sectors such as real estate, marine, technology, financial services, and utilities. Defending the deal value, officials noted that the Rs4.1 billion price exceeded the Rs3.7 billion reference price set by the Cabinet Committee on Inter-Governmental Commercial Transactions earlier this week.
The First Women Bank was established in 1989 to promote women’s financial inclusion but also offers regular banking services. As of December 2023, its total assets stood at Rs65.9 billion against liabilities of Rs62.8 billion. The bank was placed on the privatization list in 1994, and this marks its fifth and final attempt to secure a buyer.
The sale allows the new owner to expand operations without seeking a new commercial banking license, as the State Bank of Pakistan has halted issuing new ones. The buyer plans to increase the number of branches from 42 to 200 in the medium term.
Minor shareholders of First Women Bank include Habib Bank Limited and MCB Bank (each holding 5.78%), while Allied Bank, National Bank, and United Bank hold smaller stakes. Under the deal, the IHC can retrench up to 10% of the workforce immediately, but no further layoffs will be permitted for at least 18 months.