ISLAMABAD – In a significant step toward strengthening Pakistan-UAE economic relations, Prime Minister Shehbaz Sharif on Friday welcomed the acquisition of First Women Bank Ltd (FWBL) by Abu Dhabi-based International Holding Company (IHC), describing the deal as a milestone that could open doors for more joint ventures across multiple sectors.
Speaking at the signing ceremony, the prime minister called the transaction “the first drop of rain” in a broader push to deepen economic collaboration with the United Arab Emirates. The event marked the official transfer of a majority stake in FWBL to IHC under a government-to-government (G2G) arrangement. The UAE delegation was headed by Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, chairman of 2PointZero.
The federal cabinet had earlier approved the sale of the government’s entire stake in FWBL, reportedly valued at $14.6 million (around Rs4.1 billion), though the exact figure has yet to be formally disclosed. Under the deal, IHC will also fulfill the minimum capital requirement of Rs10 billion over five years. As of December 2024, FWBL’s equity stood at Rs3.2 billion, with the new investor expected to inject Rs6.8 billion to meet the required capital threshold.
Privatisation Momentum
PM Shehbaz credited the successful closure of the deal to the “determined and focused” leadership of Deputy Prime Minister Ishaq Dar and Adviser on Privatisation Muhammad Ali. He reiterated his government’s commitment to reforming state-owned enterprises and fostering private sector-led economic growth.
He emphasized that FWBL’s founding mission to support women entrepreneurs would not only be preserved but also strengthened through professional management and targeted investments in key sectors such as agriculture and industry.
IHC Eyes Long-Term Growth
IHC CEO Syed Basar Shueb said the investment reflects strong confidence in Pakistan’s financial sector and aligns with a shared vision for long-term development. “We see substantial potential in Pakistan’s financial sector and are committed to modernizing the bank by leveraging technology, automating processes, and integrating AI into financial decision-making,” he stated.
Established in 1989, FWBL currently operates 42 branches across Pakistan, catering to retail, SME, and corporate clients. According to an official statement, this marks the first bank privatisation carried out under the Inter-Governmental Commercial Transactions Act 2022, setting a precedent for future cross-border economic collaborations.
