Alfalah Bank Begins Process to Divest Operations in Afghanistan
Alfalah Bank, one of Pakistan’s largest commercial banks, has announced that the process of divesting its operations and business activities in Afghanistan has entered the practical phase, with ongoing evaluations progressing.
According to a report by Business Recorder published on Wednesday, January 6, the State Bank of Pakistan has granted Ghazanfar Bank permission to begin reviewing the purchase of Alfalah Bank’s operations in Afghanistan. Simultaneously, under Taliban administration, the Central Bank of Afghanistan has also issued a similar license to advance this process.
The report states that this development follows the receipt of a non-binding offer from Ghazanfar Bank to acquire Alfalah Bank’s activities and assets in Afghanistan. This offer remains at an initial stage and does not signify the finalization of the transaction.
Analysts have noted that Alfalah Bank has been an active player in Afghanistan’s banking market over recent years, and a potential divestment may indicate a significant shift in the bank’s regional strategy. This change is considered in the context of Afghanistan’s uncertain economic situation and banking restrictions following the Taliban’s takeover.
Alfalah Bank has emphasized that the completion of the transaction is contingent upon satisfactory technical and financial due diligence, signing of final agreements, full compliance with all legal and regulatory requirements, and obtaining all necessary approvals from relevant authorities in both Pakistan and Afghanistan.
Headquartered in Karachi, Alfalah Bank is one of Pakistan’s largest commercial banks and operates banking services across several countries in the region.
