In a significant development for Pakistan’s financial sector, Bank Alfalah Limited, one of the country’s leading commercial banks, has entered into a Memorandum of Understanding (MoU) with the National Clearing Company of Pakistan Limited (NCCPL). The agreement aims to strengthen the role of commercial banks in capital markets, expand investment opportunities, and enhance financial inclusion for both domestic and overseas investors.
The collaboration comes at a crucial time when Pakistan’s capital markets are undergoing structural changes to improve liquidity, broaden participation, and increase transparency. By aligning the strengths of a major commercial bank with the clearing and settlement expertise of NCCPL, the partnership is set to introduce new products and services that will support sustainable market growth.
Under the terms of the MoU, Bank Alfalah will explore multiple avenues to contribute to market development. These include acting as a financier for the Margin Trading System, taking on the role of a custodian clearing member, and evaluating opportunities as a professional clearing member. Additionally, Bank Alfalah will look into adopting NCCPL’s capital gains tax system, which will simplify compliance and streamline reporting for investors.
A notable aspect of the partnership is the shared focus on developing Shariah-compliant financial solutions. With Islamic finance continuing to expand in Pakistan, the introduction of new compliant products through this collaboration is expected to serve a wider range of investors seeking ethical and interest-free financial instruments.
The MoU also emphasizes facilitating overseas Pakistanis through Roshan Digital Accounts (RDAs). By leveraging NCCPL’s infrastructure, Bank Alfalah intends to create pathways that enable non-resident Pakistanis to more easily access and invest in Pakistan’s capital markets. This initiative not only strengthens the connection of the diaspora with the country’s economy but also supports efforts to bring in much-needed foreign investment.
Speaking at the signing ceremony, Atif Bajwa, President and CEO of Bank Alfalah, highlighted the importance of the initiative. He stated, “This partnership with NCCPL reflects our commitment to deepening Pakistan’s capital markets and driving innovation in both conventional and Islamic finance. By leveraging NCCPL’s infrastructure and our banking expertise, we aim to unlock new investment opportunities for local and overseas investors.”
Echoing these sentiments, Naveed Qazi, CEO of NCCPL, underlined the broader impact of the agreement. He said, “NCCPL is excited to collaborate with Bank Alfalah in expanding the scope of capital market participation. Together, we will work to introduce new products and services that bring greater efficiency, transparency, and inclusivity to Pakistan’s financial ecosystem.”
Industry observers view the partnership as a strategic milestone in building a more vibrant and diversified financial system. By integrating the banking sector more deeply with capital markets, the MoU addresses a long-standing need to create stronger linkages between investors, institutions, and regulators. This integration is expected to not only improve liquidity but also attract a larger and more diverse investor base, paving the way for long-term stability in Pakistan’s financial markets.
The agreement between Bank Alfalah and NCCPL represents more than just a partnership; it reflects a shared vision to transform Pakistan’s financial ecosystem into one that is inclusive, innovative, and well-aligned with global standards. By combining resources and expertise, the two institutions are setting the stage for significant progress in the country’s capital markets.
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