ISLAMABAD: The International Finance Corporation (IFC) and Bank Alfalah Limited (BAFL) signed a $100 million financing agreement under Pakistan’s Diversified Payment Rights Programme. Finance Minister Senator Muhammad Aurangzeb presided over the ceremony for signing the financing deal for the BAFL.
The agreement marks the first DPR transaction involving a Pakistani bank and aims to expand access to long-term foreign currency financing.
New Foreign Currency Financing Channel
IFC Regional Industry Director Momina Aijazuddin and Bank Alfalah President and CEO Atif A. Bajwa signed the agreement. The Finance Ministry said the initial transaction could provide up to $100 million through the DPR structure.
Moreover, the programme could attract international institutional and private investors if market conditions and the initial transaction perform well.
The DPR structure uses eligible future foreign currency payment flows to mobilise long-term external financing.
Supporting Pakistan’s Capital Markets
Aurangzeb welcomed coordination among the Finance Ministry, State Bank of Pakistan, IFC and Bank Alfalah.
He said the initiative could diversify Pakistan’s foreign currency financing sources and support productive investment.
Meanwhile, IFC said the structure could create another avenue for international financing and strengthen Pakistan’s capital markets.
Bank Alfalah described the transaction as a major milestone and pledged to use the structure for eligible foreign currency needs. Finance Ministry adviser Khurram Schehzad said the arrangement could encourage other Pakistani banks to pursue similar financing structures.
