Federal Cabinet Greenlights Divestment of State-Owned First Women Bank to UAE’s IHC
Pakistan’s federal cabinet has approved the sale of its 100% stake in First Women Bank Limited to a designated entity of the United Arab Emirates (UAE) government for $14.6 million (approximately PKR 4.1 billion). This decision, made during a cabinet meeting chaired by Prime Minister Shehbaz Sharif on Thursday, involved the sale of 82.64% of the government’s total shares to International Holding Company (IHC), the UAE government’s nominee.
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According to sources, the sale was executed under a negotiated agreement, which includes a crucial condition: the buyer will be granted five years to inject a minimum of PKR 10 billion in capital into the bank. As of December 2024, the bank’s equity stood at PKR 3.2 billion, meaning the new owner will need to add an additional PKR 6.8 billion to meet this capital requirement. While the Privatization Commission refrained from official comment, a senior official noted that despite appearing as a smaller deal, it is significant due to the buyer’s global financial standing. The Prime Minister’s Office did not disclose further details of the agreement.
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Sources indicated that the UAE entity valued the bank’s total worth at approximately PKR 5 billion ($17.7 million). Based on this valuation, the government will receive $14.6 million for its 82.64% shareholding. This strategic divestment is part of Pakistan’s broader economic agenda and signifies growing economic ties with the UAE.
