‘First drop of rain’: Pakistan finalizes first sale of women’s bank to UAE’s IHC

Prime Minister Shehbaz Sharif on Friday hailed the privatization of First Women Bank Limited (FWBL) as “the first drop of rain” in Pakistan’s renewed privatization drive, calling it a milestone in deepening economic and investment ties with the UAE under the government-to-government (G2G) framework.

At a signing ceremony in Islamabad between the United Arab Emirates-based International Holding Company (IHC) and the Government of Pakistan, the prime minister said the historic transaction marked “the beginning of a long and fruitful journey” to revitalize state-owned enterprises and attract foreign investment.

“This agreement marks the beginning of a promising partnership. More projects are already in the pipeline,” he said, reaffirming his government’s commitment to restructuring loss-making public entities and opening new doors for private sector-led growth.

The event marked the official transfer of a majority stake in FWBL to IHC, G2G’s first transaction in Pakistan’s banking sector.

The UAE delegation was led by Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, Chairman of 2PointZero, and attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, COAS Field Marshal Syed Asim Munir, cabinet members and senior officials from both countries.

Shehbaz welcomed Sheikh Zayed bin Hamdan to Pakistan, recalling the “everlasting friendship” of UAE leaders, including the late Sheikh Zayed bin Sultan Al Nahyan and current President Sheikh Mohammed bin Zayed, “whose heart beats for the people of Pakistan.”

He said the agreement reflected the UAE’s confidence in Pakistan’s economy and its commitment to joint ventures in banking and trade. “This is the beginning of a journey of happiness, prosperity and shared growth between two sister nations,” he added, expressing hope that more such signing ceremonies will be held “not in years, but in weeks.”

Read: Cabinet raises doubts over FWBL sale

Privatization advisor Muhammad Ali said the deal took more than a year and a half to conclude, underscoring the government’s seriousness in reviving the privatization programme. The prime minister credited the “determined and focused” leadership of Ishaq Dar and Muhammad Ali for seeing the process through to completion. (Copy 1, 3).

IHC will inject fresh capital

The federal cabinet had earlier approved the sale of the government’s entire stake in FWBL, reportedly valued at $14.6 million (approximately Rs 4.1 billion). However, the figure has not yet been officially confirmed. As per the agreement, IHC will also meet the minimum capital requirement of Rs 10 billion for five years. As of December 2024, the bank’s capital stood at Rs 3.2 billion, requiring an additional Rs 6.8 billion to meet regulatory requirements.

Founded in 1989, FWBL operates 42 branches across the country and provides retail, SME and corporate banking services. IHC plans to boost the bank’s capital base, expand operations and modernize services through artificial intelligence-driven technology and digital banking.

Planned upgrades include modernization of the core banking system, automation, integration of artificial intelligence and analytics, talent development, and rebranding to promote financial inclusion.

Read more: Reference price for proposed FWBL sale

“Our investment in First Women Bank reflects IHC’s confidence in Pakistan’s financial sector and our shared vision of sustainable growth,” said Syed Basar Shueb, CEO of IHC. “We hope to support the bank’s modernization through technology and artificial intelligence, driving innovation and long-term value creation,” he added.

The agreement, signed by Syed Basar Shueb and Nishita Mohsin on behalf of the Government of Pakistan, is the first bank privatization under the Intergovernmental Commercial Transactions Act, 2022, symbolizing the expansion of economic cooperation between the UAE and Pakistan.