ISLAMABAD: Pakistan’s Bank Alfalah Ltd. is open to further acquisitions to boost growth as the South Asian nation tries to emerge from a chronic economic crisis, Bloomberg reported this week, with the lender entering the final stages of reaching an agreement to acquire Saudi National Bank’s majority stake in Samba Bank Ltd.
Closing that deal should make Bank Alfalah a contender for future assets that go up for sale, Chief Executive Officer Atif Aslam Bajwa said in an interview to Bloomberg.
“One-off opportunities will come by, and we want to be in play for that,” Bajwa said. “We’re looking for organic and inorganic growth.”
Bank Alfalah is Pakistan’s fourth largest lender by assets and is owned by United Arab Emirates-headquartered Abu Dhabi Group. It has seen the second fastest deposit growth in the past five years among Pakistani banks, according to data compiled by Bloomberg.
That growth has come as its home country has been lurching from one loan to another from the International Monetary Fund to keep up with its debt payments that stand at about $26 billion for the year starting July. The nation expects the IMF’s executive board to approve a new $7 billion loan program later this month.
Pakistan has also asked China to “reprofile” some of its debts by extending the payment period to create more breathing room.
“The IMF program is paramount for the country to achieve because that will help in giving confidence to the rest of the world,” Bajwa said.
Pakistan’s central bank cut the policy rate by a cumulative 250 basis points in June and July from a record 22 percent. Inflation slumped from a record 38 percent in May 2023 to 11 percent in July.
The central bank’s efforts have been supportive to Pakistan’s equity markets, Bajwa said, noting that he expects interest rates to fall to single digits by 2025.
“The equity markets have been responding quite nicely,” he said.
The benchmark KSE-100 Index has rallied 71 percent in dollar terms in the past year, making it the best performing stock market globally:
“Some foreign funds have started coming back into the market to give it some support.”
Pakistan’s Bank Alfalah in final stages to acquire Saudi shares in Samba Bank — Bloomberg
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Pakistan’s Bank Alfalah in final stages to acquire Saudi shares in Samba Bank — Bloomberg
- Bank Alfalah is Pakistan’s fourth largest lender by assets and is owned by UAE-headquartered Abu Dhabi Group
- It has seen second fastest deposit growth in past five years among Pakistani banks, according to data from Bloomberg
Pakistan compensates families of victims in Islamabad mosque suicide attack claimed by Daesh
- Pakistan is paying compensation totalling more than $700,000 to the families of 40 people killed
- Attack was deadliest in capital since 2008 truck bombing that killed 60 people at Marriott Hotel
Pakistan is paying compensation totalling more than $700,000 to the families of 40 people killed in a suicide bombing at a Shiite mosque in Islamabad this month, the prime minister’s office said on Thursday.
The February 6 attack claimed by the Daesh group on the outskirts of the capital was the deadliest in Islamabad since a 2008 truck bombing that killed 60 people at the Marriott Hotel.
“Relief cheques have been delivered to the heirs of 36 martyrs belonging to Islamabad,” Prime Minister Shehbaz Sharif’s office said in a statement, adding each victim’s family received five million rupees (around $17,800).
Cheques will also be delivered to four families of victims living outside Islamabad, the statement said.
Although officials have not released a final death toll, the statement marked the first official acknowledgement that 40 people were killed in the blast.
The suicide attack occurred during Friday prayers, when mosques around the country are packed with worshippers.
Pakistan is a Sunni-majority nation, but Shiites make up between 10 and 15 percent of the population and have been targeted in attacks throughout the region in the past.
The last major attack in Islamabad took place in November when a suicide blast outside a court killed 12 people and wounded dozens, the first such incident to hit the capital in nearly three years.
The bombings come as Pakistan’s security forces battle intensifying insurgencies in southern and northern provinces that border Afghanistan.
Last year, militant assaults killed 1,235 people — including 825 security personnel and 400 civilians — with 27 suicide attacks reported nationwide and 2,597 militants killed.
