The Pakistani government, which is privatizing state-owned SME Bank Ltd., invited two financial institutions to conduct due diligence on the bank, Pakistan-based The News International reported Jan. 31.
The Privatization Commission plans to complete the privatization of the bank in the current fiscal year, through which SME Bank will get a capital injection of 6 billion rupees, the report said, citing a statement from the commission.
Five investors recently expressed interest in the commission's invitation to acquire a majority stake in SME Bank, the report said. Three companies, FINCA Microfinance Bank Ltd., Saudi Pak Industrial and Agricultural Investment Bank, and Lanka Orix Leasing Co. Plc, were prequalified after an evaluation, though Lanka Orix Leasing withdrew from the process due to Sri Lanka's strict exchange control regime.
In 2017, more than 10 local and foreign investors had expressed interest in taking up to 93.88% in the bank after Pakistan's cabinet committee on privatization approved a sale of the stake in the bank in January 2017.
As of Jan. 31, US$1 was equivalent to 110.64 Pakistani rupees.
