Karachi, January 7, 2026 — The State Bank of Pakistan (SBP) has granted approval to Ghazanfar Bank of Afghanistan to initiate the due diligence process for acquiring Bank Alfalah Limited’s (BAFL) branches in Afghanistan. This step marks a significant development in the planned transaction, aimed at transferring BAFL’s Afghan operations to the Afghan banking institution.
In a notification shared with the Pakistan Stock Exchange (PSX) on Wednesday, BAFL confirmed that the SBP has provided in-principle clearance to Ghazanfar Bank to begin its due diligence of BAFL’s operations in Afghanistan. The Central Bank of Afghanistan has also approved the process, allowing Ghazanfar Bank to review the Afghan branches in accordance with regulatory requirements.
The proposed acquisition is subject to several conditions, including the successful completion of due diligence, execution of definitive agreements, and compliance with all relevant laws and regulations. Additionally, the transaction requires obtaining all necessary regulatory and legal approvals from authorities in both Pakistan and Afghanistan before it can be finalized.
BAFL had previously informed the PSX on December 4, 2025, that it had received a non-binding offer from Ghazanfar Bank to acquire its operations in Afghanistan. The approval from the SBP and Afghan authorities now allows the prospective buyer to formally review BAFL’s assets, liabilities, and operational framework in Afghanistan, paving the way for a potential acquisition that could strengthen Ghazanfar Bank’s presence in the Afghan banking sector.
This development underscores cross-border banking collaboration and regulatory oversight, ensuring that the transaction aligns with international banking standards while safeguarding stakeholder interests.