Pakistan: Bank Alfalah-01/Saddar Karachi

Date Filed
06 May 2015
Status
Closed
Phase
Compliance
Country
Pakistan

Case Tracker

Eligibility
Eligibility
Assessment
Transferred
Assessment
Dispute Resolution
Compliance
Appraisal
Closed
CURRENT Status
Appraisal (COMPLIANCE)
Closed

Complaint Overview

Complainant

Former employee

Concerns

Discrimination, labor concerns

Cross-Cutting Issues
Labor Discrimination

Project Information

Region
South Asia
Institution
IFC
Name & Number
Bank Alfalah 34773
Company
Pakistan
Sector
Financial Markets
Department
Finance and Markets
Category
FI
Commitment

$65.4 million equity investment

Synopsis

Complaint

IFC has an active project with Bank Alfalah, a commercial bank organized under the laws of Pakistan, to help the Bank pursue its growth plans. Through the investment, IFC will support the Bank in growing the Bank’s conventional and Islamic banking operations and increase penetration into priority areas like SME banking, access to finance and agribusiness finance.

BAFL is the 5th largest private bank in Pakistan, with a 5.9% market share in terms of total assets. Bank Alfalah is a listed bank, trading on the Karachi, Lahore and Islamabad Stock Exchanges. The main sponsors of the Bank are The Abu Dhabi Group. IFC’s investment consists of $65.4 million in equity.

In May 2015, CAO received a complaint from a former employee of Bank Alfalah who raises concerns about employment termination, lack of due process and labor discrimination.  

CAO Action

CAO found the complaint eligible for further assessment in May 2015 and an assessment of the complaint was subsequently conducted. During the assessment, the complainant expressed interest in pursuing a dispute resolution process convened by CAO; however, Bank Alfalah indicated that a dispute resolution process was not appropriate at this time. Given the voluntary nature of CAO’s Dispute Resolution processes and in accordance with CAO’s Operational Guidelines, the case was referred to CAO Compliance for appraisal of IFC’s due diligence in regards the project.

CAO has completed its compliance appraisal on November 20, 2015. CAO has concluded that available evidence does not support a finding of substantial concerns regarding the environmental, and/or social outcomes of the project or issues of systemic importance to IFC, such that would merit a CAO compliance investigation.

Status

CAO has decided to close this case after compliance appraisal on November 20, 2015.

Status as of November 25, 2015

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    CAO Assessment Report
    Sep 01, 2015
    English
    CAO Assessment Report
    IFC Formal Response
    Sep 11, 2015
    English
    IFC Formal Response
  • Appraisal Report(s)
    CAO Compliance Appraisal Report
    Nov 20, 2015
    English
    CAO Compliance Appraisal Report