Pakistan’s Bank Alfalah Moves To Exit Afghanistan Operations
Bank Alfalah said it has accepted a proposal from Ghazanfar Bank to acquire its operations in Afghanistan, signalling a potential exit from the Afghan market after nearly two decades.
Bank Alfalah said it has accepted a proposal from Ghazanfar Bank to acquire its operations in Afghanistan, signalling a potential exit from the Afghan market after nearly two decades.
In a statement, Bank Alfalah said the move does not constitute a final sale but marks the start of a formal evaluation and negotiation process between the two sides. The proposal, it said, represents the first step in a multi-stage divestment process.
The bank said completion of due diligence, the signing of definitive transaction agreements and full compliance with legal and regulatory requirements will be required before the transaction can be finalised. No timeline for completion was provided, and the bank did not explain the reasons for seeking to sell its Afghan operations.
Bank Alfalah said it has formally notified the Pakistan Stock Exchange of the decision. It added that the State Bank of Pakistan has granted Ghazanfar Bank initial approval to begin a detailed review of Bank Alfalah’s Afghan business. Afghanistan’s central bank, Da Afghanistan Bank, has also approved and authorised the process, according to the statement.
Pakistani media reports say Bank Alfalah has been seeking to exit the Afghan market for several years. An earlier attempt to divest its operations failed in 2019, when Da Afghanistan Bank rejected an acquisition proposal from Azizi Bank.
Although Bank Alfalah and Azizi Bank had reached a preliminary understanding at the time, the deal could not proceed without regulatory approval. Following that setback, Bank Alfalah said it would continue operating in Afghanistan while exploring alternative options.
Bank Alfalah entered the Afghan market in 2005 and currently operates branches in Kabul and Herat.
