ISLAMABAD: In a rare government-to-government transaction, the United Arab Emirates-based International Holding Company (IHC) on Friday acquired an 82.64 per cent stake in First Women Bank Limited (FWBL) for Rs4.1 billion, a move described by officials as a step towards expanding economic cooperation between Pakistan and the UAE.
The deal was finalised under Pakistan’s Inter-Governmental Commercial Transactions Act of 2022, making it the country’s first bank privatisation conducted through a bilateral framework.
A signing ceremony was attended by Prime Minister Shehbaz Sharif, Chief of Army Staff Field Marshal Asim Munir, Deputy Prime Minister Ishaq Dar, and senior government and military officials. Also present were Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, chairman of 2PointZero, and representatives from IHC.
CCoIGCT approves bid offer for FWBL sell-off
Speaking at the event, Prime Minister Sharif characterised the deal as an early sign of closer economic ties between the two countries and suggested it would pave the way for further bilateral investments.
He also linked the transaction to Pakistan’s broader privatisation efforts, aimed at offloading loss-making state-owned enterprises and attracting foreign capital.
He said the transaction was facilitated through direct engagement between the two governments, with Deputy Prime Minister Dar and Adviser to the Prime Minister on Privatisation Muhammad Ali leading Pakistan’s side.
FWBL, established in 1989 by the then prime minister Benazir Bhutto with a mandate to support women’s financial inclusion, operates 42 branches across the country and offers services in retail, SME, and corporate banking.
The bank has struggled with capital adequacy and operational challenges in recent years, prompting its inclusion in the government’s privatisation list.
Following the acquisition, IHC is expected to inject fresh capital into the bank to meet Minimum Capital Requirements and expand its presence.
According to an official statement, the company plans to modernise the bank’s infrastructure through automation, artificial intelligence, and digital banking tools. A re-branding exercise is also expected, signalling a shift in the bank’s mandate to serve a broader segment of the population.
Syed Basar Shueb, chief executive of IHC, said the acquisition reflects confidence in Pakistan’s financial sector and reform agenda, and aligns with IHC’s strategy of investing in high-growth markets. “We look forward to supporting the bank’s modernisation through technology integration and advanced AI-driven financial decision-making.”
Copyright Business Recorder, 2025
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