The government is poised to divest its shares in the First Women Bank Limited (FWBL) to the United Arab Emirates (UAE), potentially through either the Privatisation Commission or the Inter-Governmental Commercial Transactions Act, 2022.
Sources familiar with the matter disclosed that the decision comes following the placement of FWBL on the Active Privatisation Programme by the Cabinet Committee on Privatisation (CCoP) in October 2018, subsequently ratified by the Federal Cabinet in November 2018.
According to reports, the Privatisation Commission issued a Request for Proposals (RFP) in October 2019, inviting both Technical and Financial Proposals.
After a thorough evaluation process, a consortium comprising MIS Bridge Factor & National Bank of Pakistan was appointed as the Financial Advisor for the FWBL privatisation, with the approval of the Privatisation Commission Board in December 2019.
The Financial Advisory Services Agreement (FASA) was subsequently signed in January 2020.
Despite progress, the absence of audited accounts from fiscal years 2018 to 2021 delayed further steps, including the issuance of Expressions of Interest (EoI) or Requests for Statements of Qualifications (RSOQ).
The FASA, initially signed for a two-year period, was extended twice, with the latest extension approved until April 2025.
Notably, the Government of UAE has expressed interest in acquiring the federal government’s shares in FWBL through a formal agreement, in compliance with relevant laws and regulations.
The Federal government has approved the Privatisation Commission (Government-to-Government Agreement Mode, Manner, and Procedure) Rules, 2023, facilitating such transactions under the Inter-Governmental Commercial Transactions Act, 2022.
The valuation process for the government’s shares in FWBL has been initiated by the Financial Adviser, employing methodologies outlined in the aforementioned rules.
The proposal to proceed with the sale to UAE was brought before the Federal Cabinet, which ultimately approved the Privatisation Ministry’s recommendation regarding FWBL.
The next steps involve either directing the Privatisation Commission to continue with the bidding process or referring the transaction to the Cabinet Committee for the constitution of a Negotiation Committee, approval of the price discovery mechanism, and reference price, as per the Inter-Governmental Commercial Transactions Act, 2022, and associated rules.
