IFC, Bank Alfalah sign Pakistan's first DPR agreement

Bank Alfalah and the International Finance Corporation (IFC) have signed a project agreement that brings Pakistan's first Diversified Payment Rights (DPR) programme into being, Mettis Global reported. The signing took place at the Finance Division on Thursday, and the opening transaction could involve up to $100 million. Under the structure, funds are raised against eligible future payment flows in foreign currency.

Finance Minister Senator Muhammad Aurangzeb attended the ceremony and described the transaction as an early step that could lead to similar market-based financing. He called for a pipeline of eligible projects to use such channels for productive activity. IFC said it saw the DPR structure as an extra avenue for long-term international funding and for deeper capital markets, crediting the government and the State Bank of Pakistan for their support.

Bank Alfalah welcomed the backing from the government, SBP and IFC, and said it is the first Pakistani bank to carry out a DPR transaction. The bank plans to apply the framework to eligible foreign-currency needs and to productive investment financing. The report describes the deal as a milestone for Pakistan's debt capital market that could become a precedent for other domestic banks.