Bank Alfalah shuts operations in Afghanistan

Bank Alfalah has decided to exit its operations in Afghanistan amid persistent political, economic, and regulatory challenges in the country, a move that reflects both country-specific risks and a broader strategic shift underway across Pakistan’s banking sector.

The bank had been operating in Afghanistan for many years, offering commercial banking services across multiple sectors. According to the official announcement, Afghanistan’s Ghazanfar Bank showed interest in purchasing Bank Alfalah’s Afghanistan operations. Following this development, regulators initiated the required approval process. As a result, the State Bank of Pakistan and the Central Bank of Afghanistan granted full regulatory approval, allowing the transaction to move forward.

In addition, the Afghan government permitted Ghazanfar Bank to conduct due diligence, marking another major step toward completing the deal. Officials confirmed that Ghazanfar Bank has now received clearance from Afghanistan’s central bank to begin the detailed financial and operational review. With these approvals in place, the path is clear for the final stages of the acquisition.

Banking experts believe the move reflects shifting market conditions and growing interest from local Afghan institutions to expand their footprint. They also note that the regulatory permissions from both countries highlight strong cooperation between Pakistan and Afghanistan in the financial sector.

For Bank Alfalah, the decision to exit Afghanistan appears to be part of a broader strategy to streamline operations and focus on key markets. Meanwhile, Ghazanfar Bank views the acquisition as an opportunity to strengthen its position by taking over an established operational network. Industry analysts expect the due diligence process to continue over the coming weeks. Once completed, both sides will proceed toward finalizing the sale agreement, paving the way for a complete transition of Bank Alfalah’s Afghanistan operations to Ghazanfar Bank.