Banking: IFC and Bank Alfalah Partner on Pakistan’s First DPR Issuance

ISLAMABAD: Banking in Pakistan is set for a major development as the International Finance Corporation (IFC) and Bank Alfalah Limited signed a Project Agreement linked to IFC’s planned investment of up to $100 million in Pakistan’s first-ever Diversified Payment Rights (DPR) note.

Bank Alfalah will issue the note under its DPR Programme, introducing a new source of competitively priced, long-term international financing for Pakistan’s banking sector.

The transaction also marks an important step in developing Pakistan’s debt capital market and expanding local banks’ access to international investors.

IFC’s Board approved the arrangement on May 27, 2026. The structure will allow Bank Alfalah to access international debt capital markets through a secured mechanism backed by diversified future foreign-currency receivables.

The market-based structure does not require a sovereign guarantee and could help attract additional financing from international private investors.

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The initiative builds on IFC’s advisory work with the State Bank of Pakistan (SBP) and the Ministry of Finance between December 2022 and August 2024. That support helped establish the regulatory and fiscal framework needed for DPR issuances in Pakistan.

Bank Alfalah has become the first Pakistani bank to launch a DPR programme under the new framework. The move could create a pathway for other banks to adopt similar financing structures in the future.

DPR structures have already helped financial institutions in emerging markets such as Türkiye, El Salvador and Guatemala diversify their funding sources and access international capital.

“This investment will strengthen Pakistan’s capacity to access new sources of long-term international funding,” said Momina Aijazuddin, Regional Financial Sector Director at IFC.

She said Bank Alfalah’s upcoming issuance would demonstrate the potential of the DPR framework and could encourage wider adoption across Pakistan’s banking sector, supporting greater access to finance and economic growth.

Bank Alfalah President and CEO Atif Bajwa described the agreement as an important step toward 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,” he said.

The initiative reflects continued cooperation between IFC, Bank Alfalah, the SBP and the Ministry of Finance to promote financial-sector innovation, diversify funding sources and strengthen Pakistan’s connection with international capital markets.