The International Finance Corporation (IFC) has approved a loan of up to $20 million for Novatex Limited to finance the import of raw materials and equipment, supporting the company’s operations in Pakistan’s plastic packaging industry. The financing is intended to help maintain the availability of packaging materials for export-oriented industries while supporting domestic manufacturing and supply chains. The investment comes as Pakistani manufacturers continue to seek financing for production capacity, imported inputs and equipment required to serve both local and international markets.
The financing will support Novatex in maintaining supplies of packaging materials used by industries including food processing, pharmaceuticals and consumer goods. According to the investment details, the availability of these materials is important for manufacturers that depend on packaging for their production and export operations. The financing is expected to help local manufacturers maintain production activity, protect employment and sustain export earnings by supporting the supply of packaging products required across several industrial segments.
The IFC-backed financing is also expected to contribute to reducing dependence on imported packaging products by supporting domestic production and supply chain capacity. Novatex’s operations are connected to a range of manufacturing and export-oriented activities, making the availability of locally produced packaging materials relevant to businesses that rely on these inputs. By supporting the company’s access to raw materials and equipment, the financing can help maintain production and improve the resilience of domestic supply chains.
Alongside manufacturing and supply chain objectives, the project includes an environmental sustainability component through Novatex’s recycling operations. The company operates large-scale polyethylene terephthalate (PET) recycling facilities and is expanding its recycled PET (rPET) production capacity. The expansion is intended to promote greater use of recycled materials in packaging and support Pakistan’s transition toward a circular economy. As part of the investment, IFC will also work with Novatex to strengthen its environmental and social management systems in line with IFC Performance Standards, supporting the adoption of improved sustainability practices across the company’s operations.
IFC Director for Manufacturing, Agribusiness and Services for the Middle East and Central Asia Wagner Albuquerque de Almeida said the investment is expected to help sustain employment, improve export competitiveness and support an important manufacturing sector while promoting more sustainable production. Novatex Chief Executive Officer Rizwan Diwan described IFC as an important financial partner for Pakistani businesses and said the financing marks the beginning of a broader relationship between the two organizations. The $20 million financing therefore combines support for industrial production, supply chain continuity and recycling capacity, while also creating a longer-term financial relationship between IFC and Novatex.
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