Pakistan’s Bank Alfalah exits Afghanistan after 20 years
- BAFL sells Kabul, Herat branches to Ghazanfar Bank
Pakistan’s Bank Alfalah Limited (BAFL) has completed the sale and transfer of its banking operations in Afghanistan to Ghazanfar Bank, marking BAFL’s full exit from Afghanistan after over two decades of banking presence.
The development came following regulatory approvals from Pakistan and Afghanistan, BAFL said in a filing to the Pakistan Stock Exchange (PSX) on Friday
“We are pleased to inform that, following the execution of definitive transaction documents, receipt of the approvals of the State Bank of Pakistan and Da Afghanistan Bank and satisfaction of the other conditions precedent, the transaction stands completed on 5th November 2026,” read the notice.
BAFL said that post completion of the transaction, the banking business carried on by Bank Alfalah Limited at its Kabul and Herat branches, together with the related assets and liabilities, has been transferred to Ghazanfar Bank.
Bank Alfalah advances exit from Afghanistan as central banks clear due diligence
“Bank Alfalah Limited has accordingly ceased its banking operations in Afghanistan and will complete the closure of its Afghanistan branches in accordance with applicable regulatory requirements,” it added.
Bank Alfalah commenced its operations in Afghanistan in 2005, opening its first branch in Kabul and later expanding to Herat, offering both conventional and Islamic banking services.
In December 2025, Bank Alfalah’s Board of Directors accepted a non-binding offer from Ghazanfar Bank of Afghanistan for the potential acquisition of BAFL’s banking operations in Afghanistan. The offer was subject to the completion of due diligence by Ghazanfar Bank and approvals from regulatory authorities in Pakistan and Afghanistan.
Following this, in January 2026, both the State Bank of Pakistan (SBP) and the Central Bank of Afghanistan granted their in-principle approvals for Ghazanfar Bank to commence due diligence of Bank Alfalah’s Afghanistan operations. This allowed Ghazanfar Bank to proceed with the due diligence process.
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