Pakistan’s Bank Alfalah exits Afghanistan after 20 years

Bank Alfalah Limited (BAFL) has completed the transfer of its Afghanistan banking business to Ghazanfar Bank, ending its operations in the country after more than two decades. Business Recorder reported that the transaction was finalised on 5th November 2026, following approvals from the State Bank of Pakistan and Da Afghanistan Bank.

The transfer covers the business, assets and liabilities associated with BAFL’s branches in Kabul and Herat. The bank said it has stopped providing banking services in Afghanistan and will close those branches under the relevant regulatory requirements.

BAFL began operating in Afghanistan in 2005, initially through a Kabul branch, and later expanded to Herat with conventional and Islamic banking services. Its board accepted Ghazanfar Bank’s non-binding acquisition offer in December 2025, after which both central banks gave in-principle approval for due diligence in January 2026.