Pakistan’s Bank Alfalah Limited (BAFL) has completed the transfer of its banking operations in Afghanistan to Ghazanfar Bank, ending its more than two-decade presence in the neighbouring country.

The development was confirmed through a material information notice submitted to the Pakistan Stock Exchange (PSX) on Friday.

According to the announcement, the transaction was finalised on November 5, 2026, after obtaining the required regulatory approvals from the State Bank of Pakistan (SBP) and Da Afghanistan Bank.

The agreement transfers Bank Alfalah’s banking business in Kabul and Herat to Ghazanfar Bank, including the associated assets and liabilities.

Following the completion of the deal, Bank Alfalah has ceased its banking operations in Afghanistan and will proceed with closing its branches in accordance with applicable regulatory requirements.

The Pakistani bank originally entered the Afghan market in 2005 by opening its first branch in Kabul. It later expanded its presence to Herat, offering conventional and Islamic banking services.

The latest development brings its 21-year banking journey in Afghanistan to an end.

The acquisition process began in December 2025, when Bank Alfalah’s Board of Directors accepted a non-binding offer from Ghazanfar Bank for the potential purchase of its Afghan operations.

The proposed transaction was initially subject to financial and operational due diligence, the signing of definitive agreements and regulatory approvals from both countries.

In January 2026, the State Bank of Pakistan and Da Afghanistan Bank granted in-principle approval for Ghazanfar Bank to begin examining the Pakistani lender’s Afghan business.

This clearance allowed the proposed buyer to review the operations before proceeding with the transaction.

After completing the required assessments and satisfying the remaining conditions, both parties finalised the transfer on November 5.

The financial value of the acquisition was not disclosed in the reported announcement.

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The completion of the deal marks a significant change in Bank Alfalah’s international business operations, while Ghazanfar Bank has taken responsibility for the banking activities previously conducted through the Kabul and Herat branches.