Proposed acquisition of Bank Alfalah’s operations: SBP grants due diligence approval to Ghazanfar Bank of Afghanistan

KARACHI: The State Bank of Pakistan (SBP) has granted in-principal approval to Ghazanfar Bank of Afghanistan to begin due diligence for the proposed acquisition of Bank Alfalah’s Afghanistan operations.

After nearly 20 years of operations in Afghanistan, Bank Alfalah Limited has taken a key step toward a potential exit from the country.

In a formal disclosure to the Pakistan Stock Exchange (PSX), Bank Alfalah said the SBP’s approval follows its earlier intimation dated December 4, 2025, when it informed the PSX about a non-binding offer received from Ghazanfar Bank to acquire its Afghanistan business. The latest clearance from the SBP allows the process to move into a more substantive phase.

“The SBP has granted its “In-Principle” approval/ clearance to Ghazanfar Bank, as the intended buyer, to commence due diligence of Bank Alfalah’s Afghanistan operations. In parallel, the Central Bank of Afghanistan has also accorded its approval to Ghazanfar Bank to commence due diligence of the Bank Alfalah”, the notice said.

With approvals in place from both regulators, Bank Alfalah will allow Ghazanfar Bank to proceed with the due diligence process for the proposed acquisition.

However, the Bank Alfalah has said that the proposed transaction will be subject to satisfactory completion of the due diligence, execution of definitive agreements, compliance with all applicable laws/regulations and receipt of all necessary regulatory or legal approvals from the relevant authorities in both Pakistan and Afghanistan.

Bank Alfalah commenced its banking operations in Afghanistan in 2005 with the opening of its first branch in Kabul. It later expanded its presence by establishing another branch in Herat. The bank offered both conventional and Islamic banking services in the Afghan market.

In the first week of December 2025, Bank Alfalah disclosed that it had accepted a non-binding offer from Ghazanfar Bank to acquire its Afghanistan operations. The announcement marked the first formal step toward a potential divestment, subject to regulatory approvals and other conditions.

If completed, the acquisition transaction would result in Bank Alfalah’s full exit from the Afghanistan, ending nearly two decades of its banking presence in the country.

Ghazanfar Bank, a full-fledged licensed commercial Bank, was licensed by the Central Bank of Afghanistan and commenced its operations in March 2009. The shareholders of the bank belong to one of the leading business groups in Afghanistan.

Copyright Business Recorder, 2026