Pakistan to Finalize Sale of First Women Bank Stake to UAE Amid Power Sector Privatisation Moves

Pakistan will finalize the sale of its 82.64% stake in First Women Bank Limited (FWBL) to the United Arab Emirates next month, under a government-to-government agreement, officials confirmed to a parliamentary panel. This marks the fifth and finally successful attempt to privatise FWBL, which was established in 1989 and currently operates 42 branches across 24 cities.

The UAE formally expressed interest earlier this year, and the federal cabinet approved the transaction on February 6, 2024, said Privatization Secretary Usman Bajwa during a National Assembly Standing Committee meeting. The Ministry of Finance holds the majority stake, while Habib Bank and MCB Bank each own 5.78%, with smaller shares held by Allied Bank, National Bank of Pakistan, and UBL.

Separately, Bajwa announced progress on privatising three major power distribution companies: Hesco, Sepco, and Pesco. A Request for Proposal (RFP) to hire financial advisers will be issued next month in coordination with the Power Division and the World Bank.

The parliamentary panel, chaired by MQM’s Farooq Sattar, criticized Pesco for a staggering Rs143 billion loss last fiscal year, calling for its closure amid liabilities of Rs620 billion and technical losses of 35%. Despite the CEO’s assurance of a Rs20 billion loss reduction this year, members expressed deep skepticism.

Hesco faced backlash over prolonged power outages, with its CEO citing line losses. Lawmakers pushed back, highlighting load-shedding lasting 10 hours daily. The CEO noted some improvements, with 200 of 650 feeders now load-shedding free and four more targeted by July.

Chairman Sattar demanded the finance secretary appear before the panel and ordered the Finance Division to release Rs6 billion by September, with the remainder to be disbursed next fiscal year. “This is public trust; the Finance Ministry must return it,” he said.