Has Bank Alfalah closed operations in Afghanistan?

ISLAMABAD: Bank Alfalah has announced that it is closing its banking operations in Afghanistan after almost two decades.

The bank has cited political instability as well as other economic reasons for its decision.

It has been reported that it has been under consideration for an exit in Afghanistan for several years now, and an attempt in 2019 was thwarted after Da Afghanistan Bank failed to approve an acquisition attempt by Azizi Bank.

Bank Alfalah established its presence in Afghanistan in 2005 and has been operating its branches in Kabul and Herat.

Moreover, this time, the bank has accepted a proposal from Ghazanfar Bank to take over its Afghan branch. This is in light of the general instability that is both politically and economically experienced.

In make announcement, Bank Alfalah asserts that this is not a final sale, but rather the outset of the official procedure for examination or negotiation.

There are a number of steps that need to be accomplished before any agreement can be formed. These include conducting due diligence, the signing of final agreements, and ensuring that a number of legal and other requirements are satisfied.

There is no official timeline for the completion of this deal, and the bank has not cited a coherent reason for their withdrawal from Afghanistan.

Bank Alfalah has reported the news to the Pakistan Stock Exchange. The bank stated that Ghazanfar Bank received preliminary approval for evaluating operations in Afghanistan from the State Bank of Pakistan, and the Afghanistan central bank, Da Afghanistan Bank, has approved the evaluation process.