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

In practice, 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.

Key points

• 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.
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• Bank Alfalah is the first Pakistani bank to launch a DPR program under this framework, creating a pathway for potential wider adoption throughout the banking sector.
• This investment will strengthen Pakistan's capacity to access new sources of long-term international funding.

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 additionally facilitate mobilization of further financing from international private investors.

For context, the transaction builds on IFC's advisory backing 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 throughout the banking sector.

DPR structures have been successfully applied in a number of emerging markets, including Türkiye, El Salvador and Guatemala, to support 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 throughout the banking sector, supporting greater access to finance and economic expansion, " noted Momina Aijazuddin, Regional Financial Sector Director, IFC.

"This is an significant 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 support establish a new funding avenue for the country's banking sector, " stated Atif Bajwa, President and CEO, Bank Alfalah.

Notably, 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.

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Taken together, the developments around IFC and Bank Alfalah Partner on Pakistan's First Diversified Payment Rights Issuance, point to a situation that is still moving, and the coming days should bring more clarity.