Pakistan Secures First $100m DPR Financing Deal With IFC and Bank Alfalah

ISLAMABAD: Pakistan has secured its first financing transaction under the Diversified Payment Rights (DPR) Programme, with the International Finance Corporation (IFC) and Bank Alfalah signing an agreement worth up to $100 million.

The agreement was signed at the Ministry of Finance on Thursday by IFC Regional Industry Director Momina Aijazuddin and Bank Alfalah President and CEO Atif A. Bajwa.

Finance Minister Muhammad Aurangzeb presided over the signing ceremony.

The transaction introduces a new market-based mechanism for raising long-term foreign-currency financing through eligible future foreign-currency payment flows.

New Route for Foreign-Currency Financing

The DPR Programme aims to diversify Pakistan’s sources of external financing.

It could also give the country greater access to international capital markets.

Under the initial transaction, up to $100 million will be raised through the DPR structure.

The Ministry of Finance said the programme could support further financing if market conditions remain favourable and the initial transaction performs successfully.

It could also attract broader participation from international institutional and private investors.

Finance Minister Highlights Economic Potential

Muhammad Aurangzeb praised the coordination between the Ministry of Finance, State Bank of Pakistan, IFC and Bank Alfalah.

He said the transaction required extensive regulatory, policy and technical work.

The minister described the agreement as an important first step. He said it could pave the way for similar market-based financing structures in the future.

Aurangzeb also stressed the need to diversify Pakistan’s foreign-currency financing sources.

He said innovative financing mechanisms could support investment and productive economic activity.

The minister further highlighted the importance of building a pipeline of eligible projects that require foreign-currency funding.

IFC Sees Potential for More International Investment

The IFC welcomed the support provided by the government and other stakeholders during the development of the transaction.

The organisation said the DPR structure could create another avenue for long-term international financing.

It also noted the potential contribution of the programme to Pakistan’s capital markets.

The financing could help connect Pakistani financial institutions with international investors through a new funding mechanism.

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Bank Alfalah Becomes First Pakistani Bank in DPR Transaction

Bank Alfalah described the agreement as a significant milestone for the bank.

It is the first Pakistani bank to undertake a DPR transaction.

The bank said it intends to use the structure to support eligible foreign-currency requirements and productive investment.

The agreement could also establish a model for other Pakistani banks seeking similar financing arrangements.

Deal Could Deepen Pakistan’s Capital Markets

The Finance Ministry described the transaction as an important development for Pakistan’s debt capital market and external financing framework.

Future DPR transactions by other Pakistani banks could follow, depending on market conditions and the performance of the initial programme.

Finance Ministry adviser Khurram Schehzad said the agreement would create a new market-based channel for long-term foreign-currency financing.

He said the structure could also help attract international private capital into Pakistan.

Schehzad added that the arrangement could encourage other Pakistani banks to explore similar transactions.

The agreement therefore represents more than a single $100 million financing deal.

It could mark the beginning of a broader effort to diversify Pakistan’s external financing options and deepen links with global capital markets.