Govt to hasten First Women Bank privatisation

ISLAMABAD: The government has decided to resume the process for privatization of First Women Bank Limited (FWBL) which was previously put on hold due to clerical reasons and unresolved impediments, reliable sources confided to this reporter on Friday.

The government is now preparing to remove all these hurdles and move the bank swiftly to the pre-qualification stage. This issue is also likely to be taken to the PC board.The bank has been operating in Pakistan since 1989 when the first branch opened in Karachi. Presently, it has 42 branches in 24 cities.

Notably, it was first put up for privatisation in 1996, the year it accumulated extreme losses because of exchange rate exposure on faulty foreign investment. However, it was challenged in the court by the Women Action Forum (WAF). As a result, the privatization process was suspended.

It is to be noted that the long-running discussions regarding the privatization of the bank in Pakistan have once again taken the center stage, marking the fifth attempt to transfer ownership to the private sector.

Over the years, the prospect of privatization has been explored on multiple occasions, with notable efforts in 1994, 1996, 2018, and 2021.Despite these attempts, the privatization process faced persistent challenges and roadblocks, leading to its temporary suspension a few months ago.

The government had cited unresolved issues as the primary reason for putting the privatization plans on hold.Now, the current caretaker government has decided to reignite the process which is becoming the fifth attempt to move forward with the privatization of FWBL.

It is to be noted that the federal government (Ministry of Finance) holds 82.64 percent share in the bank, Habib Bank 5.78pc; MCB Bank 5.78pc; Allied Bank, 1.94pc; National Bank of Pakistan, 1.93pc; and UBL, 1.93 percent.