Bank Alfalah advances exit from Afghanistan as central banks clear due diligence

Bank Alfalah Limited (BAFL), one of Pakistan’s largest commercial banks, has taken a step forward in the proposed divestment of its Afghanistan operations, as the State Bank of Pakistan (SBP) and the Central Bank of Afghanistan have granted regulatory approvals enabling Ghazanfar Bank to commence due diligence.

The listed bank disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“We refer to our letter dated 4th December 2025, wherein PSX was informed about the non-binding offer received by Bank Alfalah Limited from Ghazanfar Bank, Afghanistan, to acquire BAFL’s Afghanistan operations and business.

“In this regard, the SBP has granted its in-principle approval/clearance for the intended buyer, Ghazanfar Bank, to commence due diligence of BAFL’s Afghanistan operations,” read the notice.

Further, the Central Bank of Afghanistan has also granted its approval to Ghazanfar Bank to commence due diligence.

“Accordingly, BAFL will allow Ghazanfar Bank to proceed with the due diligence process,” it added.

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.

Meanwhile, the 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/legal approvals from the relevant authorities of Pakistan and Afghanistan”.