CCoIGCT Clears FWBL Sale to UAE Entity with Conditions

ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) has voiced concerns regarding the proposed sale of First Women Bank Limited (FWBL) to a UAE-based entity, raising queries about the transaction’s legal and financial framework.

During a briefing by the Ministry of Privatisation, the committee questioned the Inter-Governmental Framework Agreement mandated by the Inter-Governmental Commercial Transactions Act, 2022. The Ministry confirmed the agreement was signed and shared prior to the meeting.

The committee sought clarification on a clause enabling the buyer to acquire remaining shares from private banks. The Ministry explained it applies “only on a best-effort basis,” without obligating the seller to guarantee the transfer.

On the purchaser’s obligations for capital adequacy and leverage ratios, the Ministry presented commercial agreement clauses outlining a staggered payment schedule coordinated with the State Bank of Pakistan (SBP).

After thorough deliberations, the CCoIGCT endorsed the commercial agreement’s terms but instructed FWBL to coordinate with the Federal Board of Revenue (FBR) for swift final tax assessment and submission of revised income tax returns based on audited accounts.

The Ministry outlined the privatisation timeline: FWBL listed in November 2018, financial advisory consortium appointed in December 2019, due diligence report completed in June 2020, and initial structure approved by the Cabinet Committee on Privatisation in August 2020.

Recently, the UAE government, via the International Holding Company, signaled intent to finalize the deal, leading to negotiations with EVE Holding RSC. The agreement, vetted by the Ministry of Law and Justice, was presented for CCoIGCT approval.

The committee greenlit the proposal, paving the way for privatisation’s concluding stages.