By SKM
October 9, 2025
ISLAMABAD: In what is being hailed as a breakthrough for Pakistan’s economic reform and privatization agenda, the government is on the verge of finalizing the transfer of its 82.64% stake in First Women Bank Limited (FWBL) to International Holding Company (IHC), a UAE-based investment powerhouse. The transaction, structured under a government-to-government (G2G) framework with the United Arab Emirates, is expected to be completed within the next two weeks—marking the first true privatization of a bank under the current administration.
According to senior officials, this is not merely a divestment—it is a strategic revival of a struggling institution. IHC, nominated by the UAE government, is not only acquiring a majority stake but also committing to inject fresh capital, expand FWBL’s deposit base, and restore its financial health and operational relevance. In doing so, the deal is expected to reignite investor confidence and signal a long-awaited shift from policy rhetoric to actionable reform.
“FWBL’s privatization is more than a financial transaction—it’s a reform milestone,” said a senior government source. “It reflects our commitment to restructure inefficient state-owned entities and create space for private sector leadership in critical areas like financial inclusion.”
FWBL, established with a unique mandate to empower women through banking services, has long struggled with undercapitalization and administrative inertia. While it was placed on the privatization list back in 2018, progress remained stalled for years due to procedural delays, including the unavailability of audited accounts. Momentum finally returned in 2024 after the federal cabinet approved the bank’s privatization, led by Adviser to the Prime Minister on Privatization, Mr. Muhammad Ali.
The transaction is being guided through a carefully structured process. An Evaluation Committee is currently finalizing the reference price, which will be vetted by the Privatization Commission Board before being submitted to the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister Senator Ishaq Dar. Once approved, IHC will match the price and proceed with formal share acquisition.
The remaining 17.36% of FWBL is owned by five of Pakistan’s top commercial banks—NBP, HBL, UBL, ABL, and MCB—which are expected to retain their stakes for the time being. However, as FWBL transitions into a privately-managed institution, future shifts in shareholding cannot be ruled out.
Leading the advisory for the transaction is Bridge Factor, a financial advisory firm appointed by the Privatization Commission. The firm has carried out due diligence, valuation, and transaction structuring in line with international best practices, ensuring transparency and investor alignment.
For many analysts, this deal is a litmus test for the government’s larger economic liberalization programme. “The successful execution of FWBL’s privatization sends a strong signal to international markets that Pakistan is finally moving from intentions to execution,” remarked a senior economist. “This could pave the way for more privatizations in sectors like energy, aviation, and transport.”
Symbolically, the transaction carries weight far beyond balance sheets. Reviving First Women Bank under private leadership could breathe new life into Pakistan’s vision of inclusive finance, especially for women—a segment of the population often underserved by traditional banking systems.
As the final approvals approach, both Islamabad and Abu Dhabi appear aligned in their goal: to transform a struggling state-owned entity into a vibrant, growth-oriented bank—one that not only fulfills its original mission of women’s empowerment but also contributes to a stronger, more diversified financial sector.
The clock is ticking, and the stakes are high—but if successful, this deal could stand as a template for future privatizations and a turning point in Pakistan’s economic narrative. Ends
