Syed Muhammad Ghaznavi Islamabad, March 02 (INP-WealthPK): First Women Bank – Pakistan’s premier and the only female-centric bank – is planned to be transacted from the government’s portfolio to a private entity by December 2022. [caption id="attachment_64332" align="aligncenter" width="696"] First Women Bank[/caption] The bank has become a case study for enthusiasts of impact investing, causing stakeholders to reflect upon how to balance between creating an impact and ensuring a positive net growth. Faheem Khan, a member of the Senate Standing Committee on Privatization, was quick to remark on the case: “This is good news. If an entity is not turning a profit and causing loss to the national exchequer, it should be dealt with and privatized.’’ The legislator’s view is grounded in practicality. During a time when the economy is recovering from a once in a century pandemic, stakeholders in the houses of power are pursuing every opportunity to bring the economy back to the pre-pandemic levels. This includes re-evaluating the government’s portfolio of managed establishments. The institution itself is maintaining a neutral stance towards the transaction. Answering questions about the institution’s outlook towards the transaction, Ms. Shaheen Zamir, spokesperson for the First Women Bank, told WealthPk that the organization was looking forward to the transaction. ‘’Privatization has been going on since the ‘90s’’, added Ms. Zamir, rubbing off perception about this being a stand out transaction. With the bank not having published its financial reports since 2018 due to an exemption by the government, it is difficult to accurately pinpoint which function(s) contributed to a weakened bottom line in recent years. However, looking at the information published for years before that, business activities in the sales and trading & consumer and retail banking could be seen as major contributors to the bank’s weak bottom line. Despite being the only female-centric bank in Pakistan, the bank has continued to struggle financially over the years. This has led to various governments considering the idea of privatizing it since 1994. With 90% of proceeds from privatization transactions going towards paying off the government debt and 10% towards poverty alleviation, one can argue that the value will not be erased, but rather tactically re-distributed. However, the future of this financial institution remains uncertain until the transaction is completed and the new stakeholders decide how to go about strategically repositioning the institution in an attempt to revive the bottom line. Global post-pandemic economic recovery efforts aim to build back stronger with financial inclusion at the heart of all efforts. Following this inclusive approach, stakeholders in the houses of power ought to ensure that the capital gained in terms of expertise is not lost in this transaction. The skills gained from 32 years of operating a women-centric financial institution should be re-deployed through other channels. This will ensure that those on the margins are catered for, and that impact is made whilst reducing the government’s exposure to high-risk assets.