Bank Alfalah Completes Exit From Afghanistan
The Pakistani lender transferred its Afghan banking business to Ghaznfar Bank after regulatory approvals in both countries.
Updated on Nov. 7, 2026 in Financial Services
Bank Alfalah has completed its exit from Afghanistan, transferring its local banking business to Ghaznfar Bank. The transaction was completed on November 5 after approval from the State Bank of Pakistan and Da Afghanistan Bank.
Why it matters
The exit ends a 20-year presence in Afghanistan for the Pakistani lender and shows how cross-border banking operations are being restructured under regulatory oversight. The transfer also shifts retail and corporate banking activity in the country to a different institution.
Bank Alfalah operated in Afghanistan for 20 years, starting in Kabul in 2005, before the transaction was completed on November 5. The filing does not disclose the deal value or the size of the transferred loan and deposit books.
The players
Bank Alfalah
Bank Alfalah is a Pakistani commercial bank that has operated in Afghanistan since 2005.
Ghaznfar Bank
Ghaznfar Bank is the Afghan institution that acquired Bank Alfalah's local banking business.
State Bank of Pakistan
The State Bank of Pakistan is the country's central bank and regulator, whose approval was required for the transaction.
Da Afghanistan Bank
Da Afghanistan Bank is the central bank of Afghanistan, whose approval was also required for the transfer.
The details
Bank Alfalah offered both conventional and Islamic banking services in Afghanistan and has now ceased those operations. The lender will close its Afghan branches in accordance with applicable regulatory requirements, and it issued notice to shareholders on November 7.
Timeline
2005: Bank Alfalah began operating in Kabul.
November 5, 2026: Transfer of the Afghanistan business to Ghaznfar Bank was completed.
November 7, 2026: Bank Alfalah issued notice to shareholders.
Market Landscape
The transfer comes as Pakistani banks have been reviewing their foreign footprints and reshaping operations in Afghanistan under the dual oversight of the State Bank of Pakistan and Da Afghanistan Bank. Bank Alfalah's exit leaves the Afghan retail and corporate banking market with one fewer foreign-linked lender.
Customers of Bank Alfalah in Afghanistan will need to move accounts to Ghaznfar Bank as the Pakistani lender's branches close under regulatory requirements. Businesses and individuals relying on cross-border banking services should confirm how their accounts and transfers will be handled after the exit.
The takeaway
Cross-border banks exiting a market must navigate approval from regulators in both their home and host countries, which can take time even after a deal is signed. Account holders affected by such transfers should check with the acquiring institution about the timing and terms of their account migration.
Further reading
For more on how banks are reshaping their cross-border footprints, see Financial Services.
