Key Points
- Financing to support raw material and equipment imports
- Investment to strengthen Pakistan’s export-oriented manufacturing
- Novatex supplies packaging products to more than 40 countries
- IFC backs expansion of recycled PET production
ISLAMABAD: The International Finance Corporation (IFC) has announced a loan of up to $20 million for Pakistan’s packaging industry, supporting Novatex Limited’s imports of essential raw materials and equipment.
The financing will help strengthen domestic production of plastic packaging materials, which are critical inputs for export-oriented industries including food processing, pharmaceuticals and consumer goods, the IFC said in a statement.
The investment is expected to help sustain jobs, protect export revenues and strengthen local supply chains by reducing manufacturers’ reliance on imported packaging materials and limiting their exposure to 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.
He said the investment would help sustain employment, support export competitiveness, strengthen the resilience of a key manufacturing sector, and advance more sustainable production practices.
Pakistan’s industry sustainability
The IFC financing will also support Novatex’s sustainability efforts, including the expansion of its recycled polyethylene terephthalate (rPET) capacity. The company operates two PET recycling plants capable of recycling around two billion bottles annually, according to the IFC.
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The IFC will also support Novatex in aligning its operations with the corporation’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,” said Rizwan Diwan, chief executive officer of Novatex. “For Novatex, this is the first step, and it looks forward to expanding this relationship.”
Established in 1991, Novatex produces polyethylene terephthalate (PET) resins, recycled PET, PET preforms and biaxially oriented PET (BoPET) films.
The company has more than 65 per cent of Pakistan’s domestic PET resin market and more than 50 per cent in each of its other segments, according to the IFC. It is also Pakistan’s largest non-textile exporter, supplying PET products to more than 40 countries.
The investment aligns with Pakistan’s efforts to strengthen export-oriented manufacturing, generate foreign exchange, and build more resilient domestic supply chains.
The IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. It committed a record $71.7 billion to private companies and financial institutions in developing countries in fiscal year 2025, including funds mobilised from other investors.
$40bn World Bank Group framework for Pakistan
The financing comes against the backdrop of a landmark 10-year Country Partnership Framework (CPF) between Pakistan and the World Bank Group for fiscal years 2026-35.
The framework envisages up to $20 billion in World Bank lending for development and reform programmes, alongside a further $20 billion in private-sector mobilisation by the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
The CPF focuses on six broad outcomes: reducing child stunting, cutting learning poverty, strengthening resilience to floods and other climate-related disasters, promoting cleaner energy and better air quality, expanding fiscal space and increasing productive and inclusive private investment.
For the private sector, the framework places particular emphasis on investment that can improve Pakistan’s external trade balance, raise productivity and create more sustainable growth.
Priority areas include energy, water, agriculture, access to finance, manufacturing and digital infrastructure. IFC Managing Director Makhtar Diop said in February 2025 that IFC was looking to significantly increase its investment in Pakistan, with the potential to unlock around $2 billion annually over the decade.
