Pakistan hands over First Women Bank to UAE under G2G agreement

Pakistan on Friday officially transferred its entire 82.64% stake in First Women Bank Limited (FWBL) to the International Holding Company (IHC), a firm nominated by the United Arab Emirates, under a government-to-government (G2G) agreement.

The handover ceremony took place in Islamabad, attended by Prime Minister Shehbaz Sharif, Chief of Army Staff General Asim Munir and senior officials from both nations. This marks the first successful privatisation carried out by the current administration through the G2G framework.

The deal, valued at $14.6 million (Rs4.1 billion), received approval from the federal cabinet earlier this week. Speaking at the event, Prime Minister Sharif described the agreement as “a new chapter of economic cooperation and trust” between Pakistan and the UAE, expressing optimism that it would lead to further strategic investments. He said the privatization of First Women Bank marks the first drop of rain in fostering economic relations, joint ventures, and investments across various sectors between Pakistan and the UAE. He reaffirmed the government's commitment to serving as a catalyst for business growth and to facilitating the private sector in driving economic progress.

As part of the agreement, IHC has committed to meeting the State Bank of Pakistan’s minimum capital requirement of Rs10 billion for FWBL by injecting an additional Rs6.8 billion over the next five years.

IHC, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, manages a portfolio worth approximately $240 billion across 1,300 subsidiaries in sectors such as finance, real estate, healthcare, and energy.

Founded in 1989 to advance women’s financial inclusion, FWBL currently operates 42 branches across 24 cities in Pakistan. The bank was added to the government’s privatisation list in 1994, but multiple earlier attempts to sell its stake were unsuccessful until now.

According to officials, the sale price exceeded the reference value set by the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), signaling increased investor confidence in Pakistan’s banking sector.