Federal cabinet approves sale of First Women Bank to UAE entity for $14.6 million

The federal cabinet on Thursday approved the sale of Pakistan’s entire 82.64% stake in First Women Bank Limited (FWBL) to the United Arab Emirates–nominated International Holding Company (IHC) for $14.6 million (Rs4.1 billion) under a government-to-government (G2G) framework, The Express Tribune reported, citing sources.

The decision, made in a meeting chaired by Prime Minister Shehbaz Sharif, marks the first privatisation transaction completed by the current government. 

While neither the Privatisation Commission nor the Prime Minister’s Office released official details, officials confirmed the cabinet’s approval of the deal. The sale-purchase agreement is expected to be signed Friday in the presence of the prime minister.

The buyer has been permitted to meet the State Bank’s minimum capital requirement of Rs10 billion over five years. The bank’s equity stood at Rs3.2 billion in December 2024, with IHC to inject an additional Rs6.8 billion to reach the required threshold.

The UAE entity valued FWBL at Rs5 billion ($17.7 million). The government’s 82.64% stake will fetch $14.6 million. The IHC, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, manages assets worth around $240 billion across 1,300 subsidiaries in sectors including finance, real estate, healthcare, and energy.

Officials noted that while IHC is a private entity, the deal qualifies under the Inter-Governmental Commercial Transactions (IGCT) Act, 2022, as it involves a government-nominated buyer. 

The Rs4.1 billion sale price exceeded the Rs3.7 billion reference price set by the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) earlier this week. 

Officials said the valuation was based on a weighted average of three methods, with Rs3 billion derived through financial adviser estimates.

FWBL, established in 1989 to promote women’s financial inclusion, operates 42 branches across 24 cities. It was placed on the privatisation list in 1994, with five unsuccessful sale attempts before this agreement. As of December 2023, the bank reported total assets of Rs65.9 billion and liabilities of Rs62.8 billion.

Minor shareholders in FWBL include Habib Bank Limited and MCB Bank (5.78% each), along with Allied Bank, National Bank of Pakistan, and United Bank Limited holding smaller stakes.