Islamabad: The International Finance Corporation (IFC) and Bank Alfalah Limited have reached a significant milestone by signing a Project Agreement for Pakistan's first-ever Diversified Payment Rights (DPR) note. This development includes IFC's planned investment of up to $100 million, marking a pivotal step in enhancing Pakistan's banking sector with competitively priced, long-term international financing and deepening the country's debt capital market.

According to Bank Alfalah, the initiative, approved by IFC's Board on May 27, 2026, enables the bank to tap into international debt capital markets through a secured structure backed by diversified future foreign-currency receivables. The structure's market-based nature means it does not require a sovereign guarantee, potentially attracting further investment from international private financiers.

The DPR issuance builds on IFC's advisory support to the State Bank of Pakistan and the Ministry of Finance, provided between December 2022 and August 2024, which laid the groundwork for DPR issuances. Bank Alfalah's move to launch a DPR program under this framework positions it as the first Pakistani bank to do so, setting a precedent for broader adoption within the banking sector.

DPR structures have found success in various emerging markets such as Türkiye, El Salvador, and Guatemala, where they have helped financial institutions diversify funding sources and gain access to international capital.

Momina Aijazuddin, Regional Financial Sector Director at IFC, noted that this investment would enhance Pakistan's capacity to secure new long-term international funding sources. Atif Bajwa, President and CEO of Bank Alfalah, emphasized the importance of this step in expanding Pakistan's access to international capital and reinforcing its financial markets.

The initiative underscores the collaborative efforts of IFC, Bank Alfalah, the State Bank of Pakistan, and the Ministry of Finance to foster financial-sector innovation, diversify funding sources, and bolster Pakistan's integration with international capital markets.