Govt Uses New Way to Raise $100 Million Against Future Dollar Payments
The International Finance Corporation (IFC) and Bank Alfalah Limited (PSX: BAFL) have signed an agreement for Pakistan’s first Diversified Payment … Read More The post Govt Uses New Way to Raise $100 Million Against Future Dollar Payments appeared first on ProPakistani .
The International Finance Corporation (IFC) and Bank Alfalah Limited have entered into an agreement to launch Pakistan's first Diversified Payment Rights (DPR) program, which could raise up to $100 million in foreign currency financing. The agreement was signed on August 20 in Islamabad, with Finance Minister Senator Muhammad Aurangzeb, IFC Regional Industry Director Momina Aijazuddin, and Bank Alfalah's President and CEO Atif A. Bajwa present.
The DPR structure aims to provide a new source of foreign currency financing and increase access to international capital markets. If successful, the structure could be used for further financing and attract participation from international institutional and private investors. The transaction required coordination among the Finance Division, State Bank of Pakistan, IFC, and Bank Alfalah.
The government sees the diversification of foreign currency financing sources as crucial and plans to develop a pipeline of projects requiring such funding. The agreement may also enable other Pakistani banks to utilize DPR structures, contingent on regulatory conditions, market circumstances, and the initial transaction's performance.
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