Bank Alfalah Limited has disclosed that it has accepted a non-binding offer from Afghanistan-based Ghazanfar Bank to acquire its Afghanistan operations, marking a potential milestone in the bank’s strategic divestment plans. The offer, however, is contingent upon satisfactory due diligence, execution of definitive agreements, and obtaining all necessary regulatory approvals.
In a notice to the Pakistan Stock Exchange (PSX) on Thursday, Bank Alfalah confirmed that its board has approved the offer, highlighting that Ghazanfar Bank intends to acquire its Afghanistan business once key conditions are met. To facilitate the process, Bank Alfalah will approach the State Bank of Pakistan (SBP) and Da Afghanistan Bank to allow Ghazanfar Bank to begin its due diligence review.
Ghazanfar Bank, established in 2009 by the Ghazanfar Group, is a licensed commercial bank in Afghanistan. The Ghazanfar Group is one of Afghanistan’s prominent conglomerates with interests in petroleum, gas, and multiple industrial sectors. Ghazanfar Bank operates 15 branches across major Afghan cities and provides both conventional and Islamic banking services.
If completed, this transaction would signify Bank Alfalah’s full exit from its Afghanistan operations, subject to negotiated terms and regulatory scrutiny in both Pakistan and Afghanistan. The move comes after several years of Bank Alfalah attempting to divest its Afghan operations. An earlier proposal with Azizi Bank in 2019 failed when Da Afghanistan Bank rejected the acquisition, despite both banks reaching an in-principle understanding.
Following the setback, Bank Alfalah explored alternative options, including engaging another potential buyer or continuing its operations in Afghanistan for a limited period. The current offer from Ghazanfar Bank represents a renewed opportunity to conclude the divestment in a regulated and strategic manner.
Bank Alfalah first entered the Afghan market in 2005, maintaining branches in Kabul and Herat, and offering both conventional and Islamic banking services. Over the years, it has played a crucial role as a correspondent partner for Citibank NA, processing US Department of Defense payments within Afghanistan. The bank also holds the distinction of being the only financial institution in the country with a primary relationship with VISA. Its correspondent banking network extends to global institutions such as Citibank (US), Commerzbank (Germany), Habib American Bank (US), and United National Bank (UK).
The proposed acquisition underscores the continued evolution of Afghanistan’s banking landscape and the strategic decisions multinational banks make in the region. By potentially transferring its Afghan operations to a local player, Bank Alfalah can focus on its core markets while ensuring continuity of services for its Afghan clients.
The transaction, once finalized, will be closely monitored by regulators in both countries to ensure compliance with applicable laws, maintain financial stability, and support cross-border banking integrity. For Bank Alfalah, the deal marks a critical step in aligning its international operations with its long-term strategic goals.
Overall, the non-binding offer from Ghazanfar Bank highlights a structured approach to cross-border banking divestment and reflects broader trends in financial sector consolidation, regulatory oversight, and strategic market exits in South Asia’s evolving banking ecosystem.
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