This is against a committed investment of $389 million in accordance with all statutory requirements and terms of the successful bid approved by the Cabinet Committee on Privatisation, says a press release.

In accordance with the commission's instructions, AKFED has effected payment for 26 percent of the shares, with the remaining 25 percent being payable over two years.

This was the biggest transaction in the history of Pakistan's privatisation.

The existing senior management of the bank is expected to continue to work with directors to be appointed by the government of Pakistan and AKFED.

Habib Bank Limited (HBL) was incorporated in 1941 in Bombay and moved its headquarters to Karachi in 1947 becoming the first commercial bank to be established in Pakistan.

The bank introduces automated teller machines and travellers cheques into the Pakistani market and has more than 1,400 branches in 25 countries across five continents.

At present, HBL has five million customers with deposit over $6.1 billion and assets $7.6 billion.