Pakistan has launched a new financing method that could raise up to $100 million in foreign currency. The government introduced the country’s first Diversified Payment Rights (DPR) programme through an agreement between the International Finance Corporation (IFC) and Bank Alfalah Limited.
The Project Agreement was signed on August 20 at the Finance Division in Islamabad. Finance Minister Senator Muhammad Aurangzeb attended the ceremony. IFC Regional Industry Director Momina Aijazuddin and Bank Alfalah President and CEO Atif A. Bajwa signed the document.
Under this structure, banks can borrow foreign currency by using expected future dollar payment flows as security. This creates an additional way for Pakistan to obtain foreign funds without relying only on traditional loans.
The government expects the first deal to bring in as much as $100 million. If the initial transaction goes well and market conditions stay favourable, the programme could support further financing. It may also attract more international investors and improve Pakistan’s access to global capital markets.
Finance Minister Aurangzeb said several institutions worked together to complete the arrangement. The Finance Division, State Bank of Pakistan, IFC and Bank Alfalah coordinated on regulatory, policy and technical issues. He stressed the need to diversify sources of foreign currency funding and build a stronger pipeline of projects that require such finance.
Other Pakistani banks may later use the same DPR structure, provided they meet regulatory requirements and market conditions allow it.