PTBP Web Desk
The United Arab Emirates-based International Holding Company (IHC) has officially acquired an 82.64% stake in First Women Bank Limited (FWBL) for Rs4.1 billion. The acquisition, finalized under the Inter-Governmental Commercial Transactions Act of 2022, represents Pakistan’s first-ever bank privatisation conducted through a bilateral government framework.
The transaction, hailed by officials as a symbol of strengthening bilateral cooperation, is expected to attract further foreign direct investment (FDI) and enhance economic collaboration between Pakistan and the UAE.
The signing ceremony, held in Islamabad, was attended by key dignitaries, including Prime Minister Shehbaz Sharif, Chief of Army Staff Field Marshal Asim Munir, Deputy Prime Minister Ishaq Dar, and senior military and government officials. From the UAE side, Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, Chairman of 2PointZero, and senior representatives of IHC were present.
Prime Minister Shehbaz Sharif described the deal as a “turning point” in Pakistan-UAE relations, expressing optimism that it would pave the way for broader economic partnerships, particularly in finance, energy, and infrastructure. He noted that this privatisation deal aligns with Pakistan’s ongoing efforts to offload loss-making state-owned enterprises (SOEs) and promote private-sector-led growth.
The Prime Minister also credited Deputy Prime Minister Ishaq Dar and Adviser on Privatisation Muhammad Ali for leading Pakistan’s negotiation efforts. He highlighted that the success of this deal demonstrates the effectiveness of direct government-to-government (G2G) engagement in building investor confidence.
Founded in 1989 under the leadership of former Prime Minister Benazir Bhutto, First Women Bank Limited (FWBL) was established with a vision to promote financial inclusion for women. The bank currently operates 42 branches nationwide, offering retail, SME, and corporate banking services.
However, FWBL has faced capital adequacy challenges and operational inefficiencies over the past decade, which led to its inclusion on the government’s privatisation list. The acquisition by IHC marks a fresh start for the bank and a potential revival of its financial and social mission.
Following the deal, IHC is expected to inject new capital into FWBL to help it meet Minimum Capital Requirements (MCR) and modernize its infrastructure. The company plans to invest in digital transformation, artificial intelligence (AI), and automation tools, ensuring a more efficient and technology-driven banking experience.
Speaking at the ceremony, Syed Basar Shueb, CEO of International Holding Company, said that the acquisition underscores IHC’s confidence in Pakistan’s financial sector and reform agenda.
“This transaction reflects our long-term belief in Pakistan’s growth story. We aim to support the bank’s transformation through cutting-edge technology and advanced AI-driven financial decision-making,” Shueb said.
He further added that the company will undertake a re-branding exercise for FWBL, expanding its focus beyond women’s banking to serve a broader population, including underserved and digital-first customers.
Officials from both nations emphasized that this landmark transaction reflects the growing depth of Pakistan-UAE relations. The UAE remains one of Pakistan’s largest trading partners, investors, and remittance sources. This deal not only enhances financial cooperation but also signals a strategic shift towards institutional investment rather than traditional aid or loans.
Prime Minister Shehbaz Sharif expressed confidence that this success will open the door for more G2G investments under the Inter-Governmental Commercial Transactions Act, which was enacted in 2022 to facilitate state-to-state commercial partnerships.
The Act provides a transparent legal framework allowing governments to directly engage in commercial transactions without lengthy bidding procedures, ensuring speed and efficiency in decision-making.
Industry analysts suggest that IHC’s entry could revitalize FWBL, enabling it to compete in Pakistan’s fast-evolving digital banking landscape. By integrating AI-based analytics, mobile banking, and financial inclusion technologies, the bank is expected to attract new customers and enhance financial literacy—particularly among women entrepreneurs and SME owners.
Moreover, with IHC’s backing, FWBL could become a model of regional cooperation in banking, connecting Pakistan’s financial system with UAE’s robust capital networks.
Experts believe that the transaction will send a strong positive signal to international investors, especially at a time when Pakistan seeks to stabilize its economy, boost foreign exchange reserves, and reduce fiscal pressure through privatisation proceeds.
Broader Economic Implications
The acquisition of FWBL is being viewed as part of a broader economic recovery plan that emphasizes strategic partnerships with Gulf nations. The government expects that this deal will set a precedent for future sales of state-owned enterprises under a G2G model, ensuring transparency and faster execution.
By leveraging partnerships with financially strong allies like the UAE, Pakistan aims to reduce its reliance on debt and shift toward equity-based investments. This transaction, therefore, represents not just a banking deal but a strategic economic realignment.
