KARACHI: Pakistan’s Privatization Commission has cleared a key procedural step in the sale of its majority stake in the First Women Bank Limited (FWBL) to a United Arab Emirates (UAE) entity, recommending a reference price to the federal cabinet for approval, the finance ministry said on Friday.

The move comes as Islamabad pushes ahead with long-delayed asset sales under its broader economic reform and fiscal stabilization agenda.

Established in 1989, the FWBL was conceived as a development-oriented financial institution to promote women’s economic participation and financial inclusion.

It was set up to address the limited access women had to formal banking channels and to provide them with tailored credit, savings and entrepreneurship services.

“The Privatization Commission (PC) Board, in its 240th meeting held under the chairmanship of Mr. Muhammad Ali, Chairman, Privatization Commission, has recommended a Reference Price for the privatization of First Women Bank Limited (FWBL) to the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT),” the statement said.

“This decision marks an important step toward finalization of the Government-to-Government (G2G) process,” it added.

“FWBL, incorporated in 1989, is 82.64 percent owned by the Government of Pakistan and is currently being negotiated with the nominated entity of the Government of the United Arab Emirates (UAE) under the Inter-Governmental Commercial Transactions Act, 2022.”

The bank, whose mandate centered on empowering women through access to credit, savings and entrepreneurship opportunities, has seen its profitability decline in recent years, with its growth trajectory under strain.

The government moved to divest its stake in the institution earlier this year amid consistent pressure from the International Monetary Fund (IMF) under a $7 billion loan program to reduce the state’s footprint in the economy.

“Successful completion of the process would not only attract fresh foreign direct investment into the country but also enhance investor confidence in Pakistan’s broader privatization program,” the statement said.