ISLAMABAD: In a first, the International Finance Corporation (IFC), the World Bank’s commercial arm, and Bank Alfalah on Thursday signed a $100 million financing under the Diversified Payment Rights (DPR) Programme.

The financing agreement was signed at the Ministry of Finance by Momina Aijazuddin, the IFC’s Regional Industry Director, Financial Institutions Group for Middle East & Central Asia, and Atif A. Bajwa, President & CEO of Bank Alfalah Ltd. Finance Minister Muham­mad Aurangzeb presided over the signing ceremony.

“The initial transaction envisages up to $100m of financing under the DPR structure. Subject to market conditions and the performance of the initial transaction, the programme may provide a platform for further financing and broader participation by international institutional and private investors,” the Ministry of Finance said.

The DPR Programme provides an innovative mechanism for mobilising long-term foreign currency financing through eligible future foreign-currency payment flows. The initiative aims to diversify sources of external financing and facilitate greater access to international capital markets.

Speaking on the occasion, Mr Aurangzeb appreciated the close coordination among the Ministry of Finance (MoF), the State Bank of Pakistan (SBP), IFC and Bank Alfalah in developing the transaction. He noted that the initiative involved significant regulatory, policy and technical work and described its successful progression as an important first step that could pave the way for similar market-based financing structures in the future.

The minister emphasised the importance of diversifying Pakistan’s sources of foreign currency financing and developing innovative mechanisms to support investment and productive economic activity. He also highlighted the importance of effectively utilising the financing channel and developing a pipeline of eligible projects requiring foreign currency funding.

IFC appreciated the support and acknowledged the efforts of all stakeholders involved in bringing the transaction to this stage. They expressed confidence that the DPR structure could open an additional avenue for long-term international financing and contribute to further development of Pakistan’s capital markets.

Bank Alfalah highlighted its significance as the first Pakistani bank to undertake a DPR transaction. The bank expressed its commitment to leveraging the structure to support eligible foreign currency requirements and productive investment.

The transaction marks an important milestone in the development of Pakistan’s debt capital market and external financing framework. It also establishes a potential precedent for future DPR transactions by other Pakistani banks, subject to market conditions and the performance of the initial programme, the finance ministry said.

MoF’s adviser Khurram Schehzad explained that the financing agreement would open a new market-based channel for long-term foreign-currency financing, help crowd in international private capital, and pave the way for other Pakistani banks to enter similar arrangements. “A significant step towards diversified financing, global capital and deeper markets,” he noted.

Published in Dawn, August 21st, 2026