KARACHI: Pakistan’s Cabinet Committee on Inter-Governmental Transactions on Wednesday approved a bid from a United Arab Emirates entity owned by International Holding Company (IHC) for the sale of the state-owned First Women Bank Limited (FWBL), marking a major step in the country’s long-delayed privatization drive.

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.

Last week, Pakistan’s Privatization Commission had cleared a key procedural step in the transaction by recommending a reference price to the federal cabinet for final approval.

“The Committee approved the bid offer, being higher than the reference price, for the privatization of First Women Bank Limited (FWBL),” said an official statement. “This key milestone paves the way for successful privatization and a G2G [government-to-government] transaction with the UAE’s nominated entity owned by International Holding Company (IHC), boosting FDI [foreign direct investment] inflows and reinforcing investor confidence in Pakistan.”

Deputy Prime Minister Ishaq Dar, who chaired the meeting, lauded the efforts of the Privatization Commission and reaffirmed the government’s commitment to economic reform and transparency in the privatization process.

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.