Pakistan’s Bank Alfalah has completely wound down its operations in Afghanistan and transferred its banking business to local lender Ghazanfar Bank, Ariana News reported. Pakistani outlet Business Recorder specified that all assets and liabilities associated with the business were also transferred to Ghazanfar Bank.
In a notice to shareholders published on Friday, November 6, the bank announced that the transaction closed on November 5. Prior to completion, the lender secured approvals from the State Bank of Pakistan and Da Afghanistan Bank, in addition to fulfilling all other closing conditions.
The notice stated that Bank Alfalah has halted all banking operations in Afghanistan. It will finalize the closure of its Afghan branches in compliance with regulatory requirements.
The bank entered the Kabul market in 2005, offering both conventional and Islamic banking services before expanding to Herat.
The exit had been in development for nearly a year. As reported by Business Recorder, the bank’s board of directors accepted a non-binding acquisition offer from Ghazanfar Bank in December 2025. In January 2026, the central banks of both countries granted in-principle approval for due diligence. On its customer portal, Bank Alfalah instructed account holders in Kabul and Herat to decide by November 2 whether to transfer their balances to Ghazanfar Bank or withdraw their funds and close their accounts. In the absence of a customer response, balances were transferred automatically. On the same page, Bank Alfalah identified itself as Afghanistan’s largest foreign bank.
Afghanistan’s banking sector remains mired in crisis under Taliban rule. According to the World Bank, the country has lost access to the international banking system, while its central bank reserves remain frozen. As Radio Free Europe/Radio Liberty noted, the ongoing turmoil forced several of the country’s 12 state-owned and commercial lenders to shut down, while others operate under heavy restrictions. Media outlet 8am.media reported that most private bank shareholders and owners fled the country after 2021.
