IFC, Bank Alfalah sign Pakistan's first DPR agreement

August 20, 2026 (MLN):  Pakistan has entered its first Diversified Payment Rights (DPR) Programme, which marks a new avenue for mobilizing long-term foreign currency financing as the country works to diversify its external financing sources and deepen access to international capital markets.

A Project Agreement between the International Finance Corporation (IFC) and Bank Alfalah Limited (BAFL) for the programme was inked at the Finance Division on Thursday, with the initial transaction envisaging financing of up to $100 million, said a press release issued.

The agreement was signed in the presence of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, by Ms. Momina Aijazuddin, Regional Industry Director, Financial Institutions Group, Middle East & Central Asia at IFC, and Mr. Atif A. Bajwa, President & CEO of Bank Alfalah Limited.

The DPR structure, being pursued under the direction of the Prime Minister, allows financing to be mobilized against eligible future foreign-currency payment flows, offering a market-based mechanism that could pave the way for broader participation by international institutional and private investors, subject to market conditions and the performance of the initial transaction.

Speaking at the event, Senator Aurangzeb acknowledged the close coordination among the Ministry of Finance, SBP, IFC and Bank Alfalah in structuring the transaction, calling the significant regulatory, policy and technical groundwork behind it an important first step that could open the door to similar market-based financing structures going forward.

He stressed the need to diversify Pakistan's foreign currency financing sources and to build a pipeline of eligible projects that could draw on such channels for productive economic activity.

Representatives of IFC, for their part, credited the Government of Pakistan and SBP for their support and coordination throughout the process, voicing confidence that the DPR structure could serve as an additional channel for long-term international financing and support further development of Pakistan's capital markets.

Bank Alfalah, in its remarks, welcomed the support extended by the Government, SBP and IFC and noted its distinction as the first Pakistani bank to undertake a DPR transaction, reaffirming its commitment to using the structure to meet eligible foreign currency requirements and finance productive investment.

The transaction can be viewed as a milestone for Pakistan's debt capital market and external financing framework, with the potential to set a precedent for similar DPR transactions by other Pakistani banks in the future.

The ceremony was also attended by Secretary Finance Imdadullah Bosal and Simon Andrews, IFC's Division Director for Pakistan, Afghanistan, Kyrgyz Republic, Tajikistan & Turkmenistan, along with senior representatives of the Finance Division, IFC, Bank Alfalah and the State Bank of Pakistan (SBP).

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