Bank Alfalah has completed the transfer of its banking business in Afghanistan to Ghazanfar Bank, ending a presence that began in Kabul in 2005. The transaction was completed on 5 November 2026 after approvals from the State Bank of Pakistan and Da Afghanistan Bank. It covers the banking business at the lender’s Kabul and Herat branches, together with the related assets and liabilities.
For customers in Afghanistan, the practical question is what happens to their accounts and access to funds. For customers in Pakistan, the key distinction is that this transaction concerns Bank Alfalah’s Afghan operations; it is not an announcement that the bank is closing its Pakistani branches.
What was transferred?
Bank Alfalah’s disclosure says the banking business conducted through its Kabul and Herat branches, along with the associated assets and liabilities, has been transferred to Ghazanfar Bank. Following completion, Bank Alfalah ceased banking operations in Afghanistan and said it would complete the closure of its branches in accordance with applicable regulatory requirements.
The transfer is more than a change to the name on a branch sign. It moves responsibility for the transferred business to the acquiring bank. Customers should therefore confirm how their account number, statements, cards, digital access, standing instructions and any pending transactions are handled under the transition arrangements that apply to their account.
How the exit unfolded
| Date | Development |
|---|---|
| 2005 | Bank Alfalah began operations in Afghanistan with a branch in Kabul. |
| Later years | The bank expanded its Afghan presence to Herat. |
| December 2025 | Bank Alfalah’s board accepted a non-binding offer from Ghazanfar Bank for the potential acquisition, subject to due diligence and approvals. |
| January 2026 | The State Bank of Pakistan and Afghanistan’s central bank gave in-principle approvals for due diligence to proceed. |
| 5 November 2026 | The transaction was completed after definitive documents, regulatory approvals and other conditions were satisfied. |
The timeline matters because the December 2025 offer was not itself a completed sale. The transfer only became final after the required agreements and approvals were in place in both countries.
What Afghan account holders were told to do
Before the transaction closed, Bank Alfalah issued a public notice asking customers at its Kabul and Herat branches to state by 2 November whether they wanted their account balance transferred to Ghazanfar Bank or wanted to withdraw the balance and close the account.
The notice said that if a customer did not provide instructions by the specified date, the balance would be transferred to Ghazanfar Bank. If that customer did not already have an account with Ghazanfar Bank at the time of transfer, the acquiring bank would hold the funds on Bank Alfalah’s behalf until the customer opened an account or requested withdrawal.
Because the transfer has now been completed, customers should not rely on the old branch arrangements as if the handover were still pending. They should use the bank’s published transition notice and contact the relevant institution directly to confirm the current process for their account.
A practical checklist for affected customers
- Confirm the receiving institution: contact Ghazanfar Bank through its verified official channels and ask whether your account balance has been transferred.
- Obtain a closing or transfer statement: keep a copy of the final Bank Alfalah statement and any confirmation showing the amount transferred.
- Check access separately: do not assume an old card, mobile banking login, cheque book or standing instruction will continue to work after the transfer.
- Reconcile pending transactions: ask how deposits, withdrawals, transfers or payments initiated before 5 November are being treated.
- Protect account credentials: do not share passwords, one-time codes or card details with anyone claiming to arrange the transfer.
- Keep a written record: save correspondence, reference numbers and complaint acknowledgements if there is a balance or access dispute.
Customers who have not received a transition letter or who cannot access their funds should use the contact details in Bank Alfalah’s public notice and request written instructions. If the matter remains unresolved, they should ask the bank which local regulatory complaint channel applies.
What the transaction means for Pakistan
The exit removes one Pakistani bank’s direct branch presence from Afghanistan after more than two decades. It is relevant to the cross-border banking relationship because a branch network can support deposits, business payments, remittances and other services. However, the sale does not by itself establish that all Pakistan–Afghanistan banking channels have closed or that trade payments have stopped.
There are wider structural constraints in Afghanistan’s banking system. Bank Alfalah’s 2026 quarterly disclosure described its Afghan operations as exposed to constraints arising from frozen reserves and sanctions-related restrictions, and said it had made provisions against cross-border risk. That is useful context for the operating environment, but the bank has not publicly identified those conditions as the sole or direct reason for this particular transaction.
For Pakistani companies that trade with Afghanistan, the sensible response is to verify the bank and payment route currently available to their counterparties rather than assume an old branch relationship remains active. A change in one bank’s ownership does not automatically create a replacement correspondent-banking route for every type of transaction.
What has not been disclosed
The public transaction notice confirms the transfer and regulatory approvals, but it does not state the sale price or provide a detailed breakdown of the assets and liabilities transferred. It also does not publish a complete account-by-account transition report. Any claim about the deal’s value, the bank’s motive or the precise effect on Pakistan–Afghanistan trade would therefore go beyond the information made public.
Bank Alfalah continues to operate in Pakistan. The Afghanistan exit concerns the business previously conducted through its Kabul and Herat branches. The most important next step for affected Afghan customers is to confirm their own account status with the receiving bank and retain documentary evidence of the transfer.
Customer notice: Bank Alfalah’s public announcement for Afghanistan customers.