Bank Alfalah completes exit from Afghanistan, sells Kabul and Herat branches to Ghazanfar Bank

Bank Alfalah Limited (BAFL) has completed the sale of its banking operations in Afghanistan to Ghazanfar Bank, ending a presence of more than two decades. The bank told the Pakistan Stock Exchange (PSX) in a filing on Friday, 6 November, that the transaction was completed on 5 November 2026. Business Recorder reported the filing.

What was sold

The banking business BAFL ran from its Kabul and Herat branches, together with the related assets and liabilities, has been transferred to Ghazanfar Bank. In the notice, BAFL said it has ceased banking operations in Afghanistan and will complete the closure of its Afghan branches in line with applicable regulatory requirements.

The filing says the deal followed the signing of definitive transaction documents, approvals from the State Bank of Pakistan (SBP) and Da Afghanistan Bank, and the satisfaction of other conditions.

How the exit unfolded

• 2005: Bank Alfalah opened its first Afghan branch in Kabul and later added Herat, offering conventional and Islamic banking.
• December 2025: BAFL's board accepted a non-binding offer from Ghazanfar Bank of Afghanistan for the potential acquisition of the Afghan operations, subject to due diligence and regulatory approval in both countries.
• January 2026: the SBP and the central bank of Afghanistan gave in-principle approvals for Ghazanfar Bank to begin due diligence.
• 5 November 2026: the transaction closed.

The filings reported by Business Recorder do not state the sale price, so none is given here.

What it means for customers and shareholders

For Alfalah customers in Pakistan, nothing changes: the exit concerns only the Afghan branches. Customers in Afghanistan now deal with Ghazanfar Bank, which has taken over the accounts and branches. Shareholders can read the full notice on the PSX announcements page for the BAFL symbol.

The exit comes as Pakistan and Afghanistan remain at odds over security and trade, an issue Pakistani officials have raised in recent weeks. The bank's filing gives no reason for the sale beyond the transaction itself.

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