ISLAMABAD, August 20, 2026 – The International Finance Corporation (IFC) and Bank Alfalah Limited have signed a Project Agreement marking a key milestone toward IFC’s upcoming investment of up to US$100 million in Pakistan’s first-ever Diversified Payment Rights (DPR) note, to be issued by Bank Alfalah under its DPR Program. This landmark transaction will introduce a new source of competitively priced, long-term international financing for Pakistan’s banking sector and represents an important step in deepening the country’s debt capital market.
Approved by IFC’s Board on May 27, 2026, the arrangement will enable Bank Alfalah to access international debt capital markets through a secured structure backed by diversified future foreign-currency receivables. Importantly, the market-based structure does not require a sovereign guarantee and may also facilitate mobilization of additional financing from international private investors.
The transaction builds on IFC’s advisory support to the State Bank of Pakistan (SBP) and the Ministry of Finance between December 2022 and August 2024 to establish the regulatory and fiscal framework for DPR issuances. Bank Alfalah is the first Pakistani bank to launch a DPR program under this framework, creating a pathway for potential wider adoption across the banking sector.
DPR structures have been successfully used in several emerging markets, including Türkiye, El Salvador and Guatemala, to help financial institutions diversify funding sources and access international capital.
“This is an important step in broadening Pakistan’s access to international capital and deepening its financial markets. Bank Alfalah is proud to pioneer this instrument in Pakistan and help establish a new funding avenue for the country’s banking sector,” said Atif Bajwa, President and CEO, Bank Alfalah.
“This investment will strengthen Pakistan’s capacity to access new sources of long-term international funding. Bank Alfalah’s upcoming issuance will demonstrate the potential of the DPR framework and can pave the way for broader adoption across the banking sector, supporting greater access to finance and economic growth,” said Momina Aijazuddin, Regional Financial Sector Director, IFC.
The initiative reflects continued collaboration among IFC, Bank Alfalah, SBP and the Ministry of Finance to promote financial-sector innovation, diversify funding sources and strengthen Pakistan’s integration with international capital markets.
About Bank Alfalah
Bank Alfalah is a leading commercial bank in Pakistan, with over 1,200 branches across 250 cities and an international presence in the UAE, Bahrain, Bangladesh and Afghanistan. Its heritage and prominence extend over 25 successful years, highlighted by achievements that reflect exponential growth in the country's financial sector.
The Bank offers various products and services to private-sector institutions and governments, including corporate and investment banking, consumer banking, securities brokerage, commercial, small and medium enterprises, agricultural, Islamic, and asset financing.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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