THE privatization of First Women Bank Limited (FWBL) marks a significant turning point in Pakistan’s long-stalled privatization agenda.
Hailed by Prime Minister Shehbaz Sharif as “the first drop of rain” in a broader privatization drive, this landmark agreement with the UAE-based International Holding Company (IHC) sends a strong and positive signal to investors at home and abroad.
FWBL, originally established to support and empower women entrepreneurs, holds a unique place in the country’s financial landscape. With its transfer to a professional and visionary management under IHC, there is every reason to believe that the bank will now be better positioned to achieve its founding mission. The involvement of international investors is a clear vote of confidence in Pakistan’s potential and in the government’s efforts to build a conducive business environment. This successful transaction, conducted under the newly established government-to-government (G2G) framework with the UAE, not only strengthens economic ties between the two nations but also offers a blueprint for future privatization deals. It demonstrates that with political will, transparency and the right partners, even the most delayed reforms can be brought to fruition. However, one privatization deal alone is not enough. While the sale of FWBL is a promising beginning, it must be followed by a sustained and vigorous push to privatize other loss-making public enterprises that have long drained the national exchequer.
These entities have become inefficient, overstaffed and financially unviable. Their mounting losses represent a heavy burden on the state, diverting resources from essential public services. To ensure the success of the broader privatization programme, the government must focus not only on speed but also on substance. It is essential that the remaining SOEs are first stabilized and made financially viable before being offered to investors. This will help secure better valuation and ensure that these assets are not sold at throwaway prices. Additionally, a clear strategy must be in place to safeguard the interests of employees. Privatization should not come at the cost of job losses or erosion of workers’ rights. Instead, it must offer a pathway to improved working conditions and more sustainable employment in the private sector. The first step has been taken. It is now up to the government to maintain momentum, ensure fairness and deliver on the promise of a revitalized economy driven by a vibrant and responsible private sector.
