Bank Alfalah Limited (BAFL) is taking a major step toward exiting Afghanistan, following regulatory approvals from both the State Bank of Pakistan (SBP) and Da Afghanistan Bank (DAB).
The approvals pave the way for Ghazanfar Bank, Afghanistan, to begin its due diligence process for acquiring Bank Alfalah’s Afghan operations. The announcement was made public on Tuesday through the Pakistan Stock Exchange (PSX).
This development follows an earlier update from Bank Alfalah on December 4, 2025, regarding a non-binding offer from Ghazanfar Bank to purchase its local operations. The bank’s move reflects a strategic decision to streamline cross-border operations and focus on core markets.
With clearance from both central banks, Ghazanfar Bank can now conduct a detailed review of Bank Alfalah’s Afghan business. Industry experts say this step could strengthen Ghazanfar Bank’s presence in Afghanistan while reducing operational risks for BAFL in a challenging market.
Analysts note that Bank Alfalah’s exit could have wider implications for its international footprint, particularly in conflict-affected regions. The decision comes amid ongoing economic and security challenges in Afghanistan, which have made banking operations increasingly difficult.
The sale process is expected to be completed in phases, ensuring a smooth transfer of assets and customer accounts. BAFL emphasized that it remains committed to maintaining service quality for its Afghan clients until the transition is finalized.
Financial observers suggest that the move may also open doors for other regional banks to explore business opportunities in Afghanistan. Ghazanfar Bank stands to expand its market share significantly, while Bank Alfalah focuses on consolidating its operations in safer, more stable markets.
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The development underscores the evolving landscape of cross-border banking in South Asia and highlights the strategic decisions that private banks are taking to adapt to challenging environments.
