Bank Alfalah has decided to end its banking operations in Afghanistan after nearly 20 years due to political and economic instability.
The bank has accepted a proposal from Ghazanfar Bank to take over its Afghan business. The decision was taken due to political and economic instability.
In a statement, Bank Alfalah said this is not a final sale. It only starts a formal review and negotiation process.
The bank said several steps are still required. These include due diligence, signing final agreements and meeting all legal and regulatory conditions.
No timeline has been given for completing the deal. The bank also did not clearly state why it wants to leave Afghanistan.
Bank Alfalah has informed the Pakistan Stock Exchange about the decision.
It said the State Bank of Pakistan has given Ghazanfar Bank initial approval to review its Afghan operations.
Afghanistan’s central bank, Da Afghanistan Bank, has also approved the process.
Pakistani media reports say the bank has been trying to exit Afghanistan for years.
A previous attempt failed in 2019. At that time, Da Afghanistan Bank rejected a takeover offer from Azizi Bank.
Bank Alfalah entered Afghanistan in 2005. It currently has branches in Kabul and Herat.
