Bank Alfalah Limited (PSX: BAFL) has completed the sale and transfer of its banking operations in Afghanistan to Ghazanfar Bank, marking the conclusion of its exit from the Afghan market. The transaction was closed on November 5, 2026, after the bank completed the required documentation, obtained regulatory approvals from Pakistan and Afghanistan, and fulfilled the remaining conditions for the deal. The development was disclosed to the Pakistan Stock Exchange on November 6. With the completion of the transaction, the banking business previously operated by Bank Alfalah through its branches in Kabul and Herat, along with the associated assets and liabilities, has been transferred to Ghazanfar Bank.
According to Bank Alfalah’s disclosure, the transaction was finalized following the execution of definitive transaction documents and approvals from the State Bank of Pakistan and Da Afghanistan Bank. The completion also required the fulfilment of other conditions precedent agreed between the parties. These steps allowed the transfer of the Afghan banking business to proceed in accordance with the applicable regulatory and legal requirements. The transaction covers the banking operations conducted through the two existing branches, as well as their related assets and liabilities, placing responsibility for the transferred business with Ghazanfar Bank following the closing date.
Following the completion, Bank Alfalah has ceased its banking operations in Afghanistan and will proceed with winding up its branches in the country in line with applicable regulatory requirements. The branch closure process will follow the relevant rules governing the bank’s withdrawal from the market. The transfer represents a change in ownership and operational responsibility for the banking business previously managed by Bank Alfalah in Kabul and Herat. Ghazanfar Bank will take over the transferred operations, while Bank Alfalah will complete the remaining formalities associated with closing its presence in Afghanistan.
The transaction follows a process that began with an offer from Ghazanfar Bank in December 2025. On December 4, 2025, Bank Alfalah informed the exchange that it had received a non-binding offer from Ghazanfar Bank for the purchase of its Afghanistan operations. At that stage, the proposal was preliminary and did not represent a completed agreement. The bank subsequently disclosed on January 7, 2026, that the State Bank of Pakistan and the Central Bank of Afghanistan had granted in-principle approval for Ghazanfar Bank to begin due diligence. This allowed the prospective buyer to examine the Afghan business before the parties moved towards finalizing the transaction.
The proposed sale remained subject to satisfactory due diligence, the execution of definitive agreements, compliance with applicable laws and the receipt of all necessary regulatory and legal approvals in both countries. The November 5 closing confirms that these requirements have now been fulfilled and the transfer has been completed. Bank Alfalah’s latest disclosure brings the transaction process to an end and formally confirms its withdrawal from banking operations in Afghanistan. The bank will now focus on completing the required branch winding-up procedures, while Ghazanfar Bank assumes control of the transferred business and its associated assets and liabilities.
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