IFC and Bank Alfalah Partner on Pakistan’s First Diversified Payment Rights Issuance, Marking a Key Milestone in the Development of Pakistan’s Debt Capital Market

The International Finance Corporation (IFC) and Bank Alfalah Limited have signed a Project Agreement marking a key milestone toward IFC’s upcoming investment of up to US$100 million in Pakistan’s first-ever Diversified Payment Rights (DPR) note, to be issued by Bank Alfalah under its DPR Program. This landmark transaction will introduce a new source of competitively priced, long-term international financing for Pakistan’s banking sector and represents an important step in deepening the country’s debt capital market.

Approved by IFC’s Board on May 27, 2026, the arrangement will enable Bank Alfalah to access international debt capital markets through a secured structure backed by diversified future foreign-currency receivables. Importantly, the market-based structure does not require a sovereign guarantee and may also facilitate mobilization of additional financing from international private investors.

The transaction builds on IFC’s advisory support to the State Bank of Pakistan (SBP) and the Ministry of Finance between December 2022 and August 2024 to establish the regulatory and fiscal framework for DPR issuances. Bank Alfalah is the first Pakistani bank to launch a DPR program under this framework, creating a pathway for potential wider adoption across the banking sector.

DPR structures have been successfully used in several emerging markets, including Türkiye, El Salvador and Guatemala, to help financial institutions diversify funding sources and access 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, said Atif Bajwa, President and CEO, Bank Alfalah.

The initiative reflects continued collaboration among IFC, Bank Alfalah, SBP and the Ministry of Finance to promote financial-sector innovation, diversify funding sources and strengthen Pakistan’s integration with international capital markets.