Pakistan Sells FWBL Stake to UAE Next Month

Islamabad, May 31 — Pakistan is poised to finalize the sale of its 82.64% stake in First Women Bank Limited (FWBL) to the United Arab Emirates (UAE) next month under a government-to-government agreement, officials informed the National Assembly Standing Committee on Privatisation. Secretary Privatisation Usman Bajwa revealed that the UAE showed formal interest earlier this year, with the cabinet greenlighting the deal on February 6, 2024, per a The News report. This marks the fifth attempt to privatise FWBL, following failed efforts in 1994, 1996, 2018, and 2021. Established in 1989, FWBL operates 42 branches across 24 cities, with the Ministry of Finance holding the majority, while Habib Bank Limited and MCB Bank each own 5.78%, alongside smaller stakes by Allied Bank, National Bank of Pakistan, and UBL.

Bajwa also briefed on the privatisation of power distribution companies—Hesco, Sepco, and Pesco—noting a Request for Proposal (RFP) to hire financial advisers next month, crafted with the Power Division and World Bank. Lawmakers slammed Pesco for Rs143 billion losses last year, with liabilities at Rs620 billion and technical losses at 35%, some demanding its closure. Pesco’s CEO projected a Rs20 billion loss reduction this year. Hesco drew ire for 10-hour daily loadshedding, its CEO blaming line losses, though 200 of 650 feeders are now loadshedding-free, with four more planned by July. Chairman Farooq Sattar insisted the Finance Secretary appear, demanding the Finance Division release Rs6 billion by September, with the rest next year, stating, “This is public trust; the Finance Ministry must return it.”

Web context notes Pakistan’s privatisation push (e.g., 24 entities targeted, web ID: 12), while posts found on X show public frustration—some support FWBL sale, others decry power sector mismanagement. Critically, the narrative of “progress” may mask systemic failures—web sources highlight persistent inefficiencies, and X sentiment suggests distrust in privatisation outcomes, hinting at broader governance issues.