Bank Alfalah Ends Operations in Afghanistan
Bank Alfalah, one of Pakistan’s largest private banks, has decided to end its operations in Afghanistan. The bank has formally informed the Pakistan Stock Exchange of this decision.
The move comes after receiving approval from the State Bank of Pakistan. Following this, Bank Alfalah has started the formal process to wind down its activities in Afghanistan, where it has been operating for several years.
Ghazanfar Bank to Acquire Operations
According to the bank’s statement, Ghazanfar Bank, a major Afghan financial institution, has expressed interest in acquiring Bank Alfalah’s Afghan operations. Consequently, regulatory approval procedures have begun in both Pakistan and Afghanistan.
Both the State Bank of Pakistan and the Central Bank of Afghanistan have granted necessary approvals. Additionally, the Afghan government has allowed Ghazanfar Bank to conduct due diligence, which is a detailed review of Bank Alfalah’s assets, liabilities, and compliance.
The Central Bank of Afghanistan has officially authorized Ghazanfar Bank to start this process. Therefore, the acquisition is now nearing completion.
Regional Economic Context
Experts say this decision reflects broader economic and regulatory changes in the region. Afghanistan’s banking sector has faced challenges, including liquidity shortages, regulatory uncertainty, and political risks.
Moreover, many regional banks are now cautious about maintaining operations in countries with unstable conditions. Bank Alfalah’s exit aligns with this trend.
The acquisition by Ghazanfar Bank may strengthen Afghanistan’s domestic banking sector. As one of the country’s largest banks, Ghazanfar is expanding its services. This consolidation could improve financial stability and increase customer confidence.
Strategic Implications for Bank Alfalah
For Bank Alfalah, this exit represents a strategic realignment rather than a full retreat from international markets. The bank continues to operate abroad in other regions and remains focused on serving Pakistani customers overseas.
Bank officials report that the sale process is progressing smoothly. Regulatory approvals are secured, and due diligence is underway. Once finalized, the transaction will end Bank Alfalah’s direct presence in Afghanistan but may lead to future collaborations in the region.
Conclusion
Bank Alfalah’s exit highlights how geopolitical, economic, and regulatory factors affect regional banking decisions. The sale to Ghazanfar Bank demonstrates the growing role of local institutions in stabilizing Afghanistan’s financial sector.
As the acquisition concludes, observers will monitor its impact on Afghan banking, regional integration, and cross-border operations in South Asia.
