Bank Alfalah Afghanistan operations have taken a significant step forward as Bank Alfalah Limited (PSX: BAFL) has received in-principle approval from the State Bank of Pakistan (SBP), allowing Afghanistan-based Ghazanfar Bank to initiate due diligence on its Afghanistan business and operations. The development marks a critical milestone in Bank Alfalah’s planned divestment strategy in the region. The approval has also been endorsed by the Central Bank of Afghanistan, enabling Ghazanfar Bank to formally begin its review process. Together, these regulatory clearances pave the way for deeper assessment and potential acquisition of Bank Alfalah’s Afghanistan operations. Read More: https://theboardroompk.com/pakistani-rupee-exchange-rate-today-pkr-shows-marginal-stability-against-us-dollar/ Regulatory Approvals Strengthen Transaction Momentum The dual approvals from Pakistan’s and Afghanistan’s central banks reflect regulatory alignment on cross-border banking transactions, a crucial requirement for financial sector deals involving multiple jurisdictions. In practical terms, this means Bank Alfalah is now authorized to grant the intended buyer access to its Afghanistan-based financial records, operational frameworks, and compliance structures. The due diligence phase will allow Ghazanfar Bank to evaluate asset quality, risk exposure, branch performance, and regulatory compliance before proceeding further. This regulatory green light follows Bank Alfalah’s earlier Pakistan Stock Exchange (PSX) disclosure dated December 4, 2025, in which the bank announced receipt of a non-binding offer from Ghazanfar Bank for the acquisition of its Afghanistan operations. Bank Alfalah Afghanistan Operations and the Strategic Context The move to allow due diligence aligns with Bank Alfalah’s broader strategic focus on optimizing its international footprint. Over recent years, Pakistani banks have reassessed foreign operations amid rising compliance costs, geopolitical risk, and evolving regulatory environments. For Bank Alfalah, exiting Afghanistan could help strengthen capital efficiency, reduce operational risk, and refocus resources toward core and high-growth markets. Meanwhile, Ghazanfar Bank’s interest highlights confidence in Afghanistan’s local banking potential, particularly from regional players with on-ground familiarity. Transaction Still Subject to Key Conditions While progress has been made, it is important to note that the proposed acquisition of Bank Alfalah Afghanistan operations is not yet finalized. The transaction remains conditional on several critical factors. First, the due diligence must be completed to the satisfaction of Ghazanfar Bank. Second, both parties must agree on and execute definitive transaction agreements. Lastly, the deal will require full compliance with applicable laws and regulations, along with the receipt of all remaining regulatory and legal approvals from relevant authorities in Pakistan and Afghanistan. Only after these steps are successfully completed can the transaction move toward closure. Implications for Investors and the Banking Sector From an investor perspective, the development introduces cautious optimism. While no financial terms have been disclosed, the successful divestment of Bank Alfalah Afghanistan operations could positively impact the bank’s risk profile and balance sheet strength. For the broader banking sector, the transaction underscores an ongoing trend of strategic realignment and consolidation, particularly in frontier and high-risk markets. It also demonstrates continued regulatory cooperation between Pakistan and Afghanistan on financial matters, which is essential for regional economic stability. What Comes Next for Bank Alfalah The next phase will be closely watched by market participants, analysts, and regulators alike. Any updates on the completion of due diligence, signing of binding agreements, or changes in transaction terms are expected to be disclosed through the Pakistan Stock Exchange in line with transparency requirements. Until then, Bank Alfalah Afghanistan operations remain under evaluation, with the outcome likely to shape the bank’s international strategy and investor sentiment in the months ahead.
