DPR Programme Pakistan Advances First $100m Financing Deal
IFC and Bank Alfalah sign an agreement for Pakistan’s first Diversified Payment Rights Programme.
Pakistan has taken a significant step towards diversifying its external financing options with the signing of a Project Agreement between the International Finance Corporation (IFC) and Bank Alfalah Limited (BAFL).
The agreement covers Pakistan’s first Diversified Payment Rights (DPR) Programme. The signing took place at the Finance Division in Islamabad in the presence of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.
New Financing Route for Pakistan
The agreement was signed by Momina Aijazuddin, Regional Industry Director, Financial Institutions Group, Middle East & Central Asia at IFC, and Atif A. Bajwa, President and CEO of Bank Alfalah.
The DPR Programme is being pursued under the direction of the Prime Minister. It aims to mobilize long-term foreign currency financing through eligible future foreign-currency payment flows.
The initiative is also designed to diversify Pakistan’s external financing sources. It could help the country gain greater access to international capital markets.
The initial transaction envisages financing of up to US$100 million under the DPR structure.
Programme Could Attract Further Investment
The initial transaction could serve as a platform for additional financing. Future transactions would depend on market conditions and the performance of the first programme.
The structure could also encourage broader participation from international institutional and private investors.
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Speaking at the ceremony, Senator Muhammad Aurangzeb praised the coordination among the Ministry of Finance, State Bank of Pakistan, IFC and Bank Alfalah.
He said the transaction involved substantial regulatory, policy and technical work. He described its progress as an important first step towards similar market-based financing structures.
Government Highlights Foreign Currency Financing
The Finance Minister stressed the importance of diversifying Pakistan’s sources of foreign currency financing.
He also emphasized the need for innovative financing mechanisms. Such mechanisms can help support investment and productive economic activity.
Aurangzeb highlighted the importance of using the new financing channel effectively. He also called for a pipeline of eligible projects that require foreign currency funding.
Representatives of IFC appreciated the support provided by the Government of Pakistan and the State Bank of Pakistan.
They also acknowledged the efforts of the stakeholders involved in developing the transaction. IFC representatives said the DPR structure could create another avenue for long-term international financing.
Bank Alfalah Marks First DPR Transaction
Bank Alfalah highlighted the importance of becoming the first Pakistani bank to undertake a DPR transaction.
The bank said it would seek to use the structure for eligible foreign currency requirements. It also plans to support productive investment through the financing mechanism.
The transaction represents a notable development for Pakistan’s debt capital market and external financing framework.
It could also establish a precedent for future DPR transactions by other Pakistani banks. Any such transactions would remain subject to market conditions and the performance of the initial programme.
Senior Officials Attend Signing Ceremony
The ceremony was attended by Secretary Finance Imdadullah Bosal and Simon Andrews, Division Director for Pakistan, Afghanistan, Kyrgyz Republic, Tajikistan and Turkmenistan at IFC.
Senior representatives from the Finance Division, IFC, Bank Alfalah and the State Bank of Pakistan also attended the event.
The agreement marks a new step in Pakistan’s efforts to develop market-based financing tools. It could help broaden the country’s access to international capital while creating additional options for long-term foreign currency funding.
