Pakistan and South Korea Complete First CEPA Round in Seoul
August 21, 2026
IFC and Bank Alfalah have launched Pakistan’s first DPR financing programme, with an initial transaction of up to $100 million.
Bank Alfalah has entered a new form of international financing after becoming the first Pakistani bank to use a Diversified Payment Rights (DPR) structure in an agreement involving the International Finance Corporation (IFC).
The arrangement, valued at up to $100 million for its initial transaction, was signed at the Ministry of Finance in Islamabad. IFC Regional Industry Director for Financial Institutions Group, Middle East and Central Asia, Momina Aijazuddin, and Bank Alfalah President and CEO Atif A. Bajwa signed the agreement, with Finance Minister Muhammad Aurangzeb attending the ceremony.
The DPR mechanism is designed to help banks obtain foreign-currency funding by leveraging qualifying payment receipts expected from their international transactions. Unlike conventional financing routes, the structure can provide access to longer-term funds from overseas investors and financial institutions.
The Finance Ministry said the first transaction could reach $100 million, while the broader programme has the potential to support additional fundraising in the future. Expansion would depend on market conditions and the performance of the initial transaction.
Aurangzeb said the initiative followed extensive work involving the Ministry of Finance, State Bank of Pakistan, IFC and Bank Alfalah. The process required coordination on regulatory requirements, policy matters and technical aspects before the financing structure could be established.
The finance minister said Pakistan needed to develop a wider range of foreign-currency funding sources and encouraged the identification of viable projects that could make productive use of financing obtained through the new mechanism.
The IFC welcomed the completion of the transaction and said the arrangement could create another avenue for international funding while contributing to the development of Pakistan’s capital markets.
For Bank Alfalah, the agreement marks the introduction of a financing structure that can be used for eligible foreign-currency requirements. The bank said it intends to utilise the mechanism in support of productive economic activity.
The Finance Ministry said the transaction could provide a template for similar arrangements involving other Pakistani banks. However, the potential expansion of the programme will depend on the response from international investors and the results achieved through the initial transaction.
Finance Ministry adviser Khurram Schehzad said the initiative could encourage greater participation from international private capital and broaden the country’s financing options.
The agreement comes as Pakistan seeks to strengthen its external financing framework by developing market-based alternatives and reducing dependence on a limited number of traditional sources of foreign currency.
