Pakistan expects up to $100mn under first DPR programme

Bank Alfalah Limited has signed a project agreement with the International Finance Corporation for Pakistan's first Diversified Payment Rights programme, according to a Finance Division statement that Business Recorder cited. The deal was executed on Thursday by IFC's regional industry director for financial institutions in the Middle East and Central Asia, together with the bank's president and chief executive.

The first transaction is expected to raise as much as $100 million, the Finance Division said. Finance Minister Aurangzeb praised coordination between the finance ministry, the State Bank of Pakistan, IFC and the bank, calling the result an important first step. The bank said it is the first Pakistani lender to carry out a DPR transaction and intends to use the structure for eligible foreign currency needs and productive investment.

The mechanism draws on eligible future foreign currency payment flows to raise long-term funding from overseas, with any further financing depending on market conditions and the performance of the initial deal. The Finance Division called the transaction a milestone for Pakistan's debt capital market.