ISLAMABAD: Pakistan has taken a major step towards expanding its access to international financing with the signing of a Project Agreement between the International Finance Corporation (IFC) and Bank Alfalah Limited.
The agreement marks the launch of Pakistan’s first Diversified Payment Rights (DPR) Programme. The programme could secure up to $100 million in long-term financing during its initial phase.
Programme to Diversify External Financing
The Ministry of Finance said the DPR Programme would allow financing against future foreign currency payment receivables.
The initiative aims to diversify Pakistan’s external financing sources and improve access to international capital markets.
The ministry said the initial transaction could help Pakistan secure more foreign financing in the future. It also expects greater participation from global institutional and private investors.
Officials described the programme as an important development for Pakistan’s debt capital market and external financing framework.
Aurangzeb Welcomes New Financing Mechanism
Finance Minister Muhammad Aurangzeb appreciated the cooperation between the Ministry of Finance, the State Bank of Pakistan, IFC and Bank Alfalah.
He said the DPR Programme could create new opportunities for market-based financing in the coming years.
Aurangzeb also stressed the importance of developing innovative financing tools to support investment and productive economic activity.
The finance minister called for a strong pipeline of projects that could qualify for foreign currency financing.
Bank Alfalah Leads First DPR Transaction
According to the Ministry of Finance, Bank Alfalah has become the first Pakistani bank to initiate a DPR transaction.
The move could encourage other Pakistani banks to explore similar financing arrangements.
The IFC said the DPR structure could provide Pakistan with another source of long-term international financing.
The new programme is expected to strengthen Pakistan’s external financing options and expand the country’s access to international investors and capital markets.
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