ISLAMABAD: Bank Alfalah Ltd. has received initial regulatory approvals to proceed with a potential sale of its Afghanistan operations to Ghazanfar Bank, the lender disclosed to the Pakistan Stock Exchange on Tuesday. The approvals allow Ghazanfar Bank to begin due diligence, marking a key step toward finalizing the proposed transaction.
Central banks grant in-principle approvals
In a letter dated January 7, Bank Alfalah said the State Bank of Pakistan granted “in-principle” clearance for Ghazanfar Bank to assess its Afghanistan business. Additionally, the central bank of Afghanistan approved the due diligence process, enabling both parties to evaluate operational, financial, and regulatory aspects of the potential deal.
The disclosure follows an earlier announcement on December 4, when Bank Alfalah confirmed it had received a non-binding offer from Ghazanfar Bank to acquire its Afghanistan operations. Officials emphasized that these preliminary approvals do not constitute a final agreement but are essential to move forward with formal assessments.
Next steps and conditions
Bank Alfalah noted that the proposed sale remains subject to several conditions. These include the satisfactory completion of due diligence, the signing of definitive agreements, adherence to applicable laws and regulations, and receipt of all necessary regulatory and legal approvals from authorities in both Pakistan and Afghanistan.
The bank added that it will continue to update shareholders and the market as the process progresses, ensuring transparency throughout the potential transaction.
If completed, the deal would represent a strategic move for both banks, enabling Bank Alfalah to restructure its overseas operations while allowing Ghazanfar Bank to expand its presence in Afghanistan.
