The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) has raised questions over the proposed sale of First Women Bank Limited (FWBL) to a UAE-based company, seeking clarity on the legal framework and financial terms of the deal.
During a detailed briefing by the Ministry of Privatisation, the committee asked about the Inter-Governmental Framework Agreement signed under the 2022 Act, along with clauses allowing the buyer to acquire remaining private shares. The Ministry clarified that the clause applied only on a “best-effort basis,” not as a binding obligation.
The committee also reviewed the purchaser’s compliance with capital adequacy and leverage ratio requirements, as well as the payment schedule agreed with the State Bank of Pakistan (SBP). After extensive discussion, the committee approved the commercial agreement but instructed the bank to coordinate with the Federal Board of Revenue (FBR) to finalize pending tax assessments.
The Ministry of Privatisation outlined the sale’s background from FWBL’s inclusion in the privatisation list in 2018, to the hiring of a financial advisory consortium in 2019, and the completion of due diligence in 2020.
An official from the ministry said,
“All due legal procedures have been followed, and the agreement has been vetted by the Ministry of Law and Justice.”
The CCoIGCT’s approval now paves the way for the final phase of FWBL’s privatisation, pending completion of financial and regulatory clearances.