Pakistan to sell First Women Bank to UAE next month

ISLAMABAD: Pakistan will finalise the sale of its 82.64 percent stakes in First Women Bank Limited (FWBL) to the United Arab Emirates (UAE) next month under a government-to-government agreement, marking the fifth and finally successful attempt to privatise the institution, officials told a parliamentary panel.

The UAE formally expressed interest in acquiring the federal government s shares earlier this year, and the cabinet approved the transaction on February 6, 2024, Secretary Privatization Usman Bajwa informed the National Assembly Standing Committee on Privatization.

Established in 1989, FWBL currently operates 42 branches in 24 cities. Previous privatisation efforts in 1994, 1996, 2018, and 2021 failed to materialise. The Ministry of Finance holds the majority 82.64 percent stakes, while Habib Bank and MCB Bank each own 5.78 percent. Allied Bank, National Bank of Pakistan, and UBL hold smaller shares.

Bajwa also revealed that the privatisation of three major power companies Hesco, Sepco, and Pesco is moving forward. A Request for Proposal (RFP) for hiring financial advisers will be floated next month, developed in consultation with the Power Division and the World Bank.

The panel, led by MQM s Farooq Sattar, lashed out at Pesco for incurring Rs143 billion in losses last fiscal year, calling for the utility s closure as liabilities hit Rs620 billion and technical losses stood at 35 percent. Pesco CEO said losses would shrink by Rs20 billion this year, but member Zulfiqar Ali quipped, Not even Owais Leghari can fix Pesco only a field marshal can.

Meanwhile, Hesco came under fire for prolonged outages, as its CEO blamed line losses. Lawmakers pushed back, saying even the minimum loadshedding is 10 hours. The CEO said he couldn t comment on board members competence but noted 200 of 650 feeders are now loadshedding-free, with four more to be added in July.

Chairman Farooq Sattar demanded the finance secretary appear before the panel and directed the Finance Division to release Rs6 billion by September, with the remainder to follow next fiscal year. This is public trust the Finance Ministry must return it, he said.