Pakistan: Bank Alfalah-01/Saddar Karachi
Discrimination, labor concerns
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 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.
CAO has decided to close this case after compliance appraisal on November 20, 2015.
Status as of November 25, 2015