The International Finance Corporation has announced a loan of up to $20 million to Novatex Limited, one of Pakistan's leading producers and exporters of plastic packaging materials.
The investment will finance imports of essential raw materials and equipment to support the country's packaging industry and expand the company's recycled PET capacity.
Why is IFC investing in Pakistan's packaging sector?
Packaging materials are a critical input for Pakistan's export-oriented manufacturing sectors, including food processing, pharmaceuticals and consumer goods. By supporting domestic production, IFC's investment is intended to help sustain jobs, preserve export revenues and strengthen the resilience of local supply chains. A stable domestic supply of plastic packaging also reduces the country's reliance on imports and protects downstream manufacturers from supply disruptions.
"Pakistan's long-term economic growth depends on sustaining competitive, export-oriented industries that create jobs, generate foreign exchange, and invest for the future," said Wagner Albuquerque de Almeida, IFC Director for Manufacturing, Agribusiness and Services, Middle East and Central Asia. "IFC's investment in Novatex will help sustain employment, support export competitiveness, and strengthen the resilience of a key manufacturing sector while advancing more sustainable production practices."
What is Novatex's role in Pakistan's circular economy?
Novatex operates large-scale PET recycling plants and is expanding its recycled PET capacity, supporting Pakistan's gradual transition toward a circular economy in the packaging sector. IFC will also help Novatex align its operations with IFC's Performance Standards on environmental and social management.
"Novatex views IFC as a key financial partner for Pakistani corporates in general and for Novatex in particular. For Novatex this is the first step, and it looks forward to expanding this relationship," said CEO Rizwan Diwan.
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