Afghan operations: BAFL accepts non-binding offer from Ghazanfar Bank

KARACHI: Bank Alfalah Limited (BAFL) has formally announced that its Board of Directors has accepted a non-binding offer from Ghazanfar Bank of Afghanistan for the potential acquisition of BAFL’s banking operations in Afghanistan — a move that could reshape the bank’s regional footprint.

The development was shared through a material information notice submitted to the Pakistan Stock Exchange (PSX), in line with Section 96 of the Securities Act 2015 and Clause 5.6.1 of the PSX Rule Book, which require listed companies to disclose significant corporate decisions to the market.

According to the disclosure, the non-binding offer marks the first step in a multi-stage process. The offer is contingent upon several key prerequisites, including the completion of a comprehensive due diligence exercise by Ghazanfar Bank, the finalization and signing of definitive transactional agreements, adherence to all relevant legal and regulatory frameworks, and the receipt of approvals from the respective regulatory authorities in Pakistan and Afghanistan.

Bank Alfalah emphasized that accepting the offer does not constitute a final sale but allows the two sides to initiate formal assessments and negotiations. As part of the next steps, the bank will approach the State Bank of Pakistan (SBP) and Da Afghanistan Bank (DAB) to secure regulatory permissions that would enable Ghazanfar Bank to begin its due diligence review of BAFL’s Afghanistan operations.

Industry analysts say Bank Alfalah, one of the country’s largest private banks, has maintained a presence in Afghanistan for several years, and any potential divestment would mark a significant strategic shift.

While the timeline for the completion of the transaction remains uncertain, market observers expect further clarity once Ghazanfar Bank completes its due diligence and both sides progress toward binding agreements, subject to regulatory oversight and market conditions.

Copyright Business Recorder, 2025