IFC and Bank Alfalah Partner on Pakistan’s First Diversified Payment Rights Issuance, Marking a Key Milestone in the Development of Pakistan’s Debt Capital Market

The International Finance Corporation (IFC) and Bank Alfalah Limited have jointly announced a significant milestone in Pakistan's debt capital market. The agreement, signed on May 27, 2026, paves the way for Bank Alfalah to issue Pakistan's first Diversified Payment Rights (DPR) note, an innovative financing instrument. This landmark deal is part of IFC's $100 million investment in Pakistan's financial sector.

The DPR structure, approved by IFC's Board, offers a novel source of competitively priced long-term international financing, backed by diversified future foreign-currency receivables. Crucially, the transaction does not require a sovereign guarantee, potentially allowing for further international private investment. This pioneering effort, led by Bank Alfalah, demonstrates the viability of DPR structures in emerging markets, echoing successful implementations in Türkiye, El Salvador, and Guatemala.

IFC's Regional Financial Sector Director, Momina Aijazuddin, highlighted the potential of this investment to bolster Pakistan's access to new long-term funding sources, while Bank Alfalah's President and CEO, Atif Bajwa, emphasized the importance of pioneering this instrument in the Pakistani banking sector.