IFC, Bank Alfalah Partner on Pakistan’s First Diversified Payment Rights Issuance
The International Finance Corporation (IFC) and Bank Alfalah Limited have signed a Project Agreement, marking a significant step toward IFC’s planned investment of up to US$100 million in Pakistan’s inaugural Diversified Payment Rights (DPR) note, to be issued by Bank Alfalah under its DPR Program.
ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 20th Aug, 2026)
This transaction aims to introduce a novel source of competitively priced, long-term international financing for Pakistan’s banking sector, representing a crucial milestone in deepening the country’s debt capital market.
Approved by IFC’s Board on May 27, 2026, the arrangement empowers Bank Alfalah to access international debt capital markets through a secured structure backed by diversified future foreign-currency receivables, as stated in a press release issued on Thursday. Notably, the market-based structure avoids the need for a sovereign guarantee and may also facilitate the mobilization of additional financing from global private investors.
The deal builds upon IFC’s advisory support to the State Bank of Pakistan (SBP) and the Ministry of Finance between December 2022 and August 2024, which focused on establishing the regulatory and fiscal framework for DPR issuances. Bank Alfalah is the first Pakistani bank to launch a DPR program under this framework, paving the way for potential wider adoption across the banking sector.
DPR structures have proven successful in several emerging markets, such as Türkiye, El Salvador, and Guatemala, aiding financial institutions in diversifying their funding sources and gaining access to international capital.
"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.
"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," added Atif Bajwa, President and CEO, Bank Alfalah.
The initiative reflects ongoing collaboration among IFC, Bank Alfalah, SBP, and the Ministry of Finance to foster financial sector innovation, diversify funding sources, and strengthen Pakistan’s integration with international capital markets.
