The International Finance Corporation (IFC) has approved financing of up to $20 million for Novatex Limited to support the import of raw materials and equipment, providing additional support to Pakistan’s plastic packaging industry and supply chains serving export-oriented sectors.
The financing is expected to help Novatex maintain the availability of packaging materials required by several major industries, including food processing, pharmaceuticals and consumer goods. By supporting access to essential raw materials and equipment, the investment is intended to help local manufacturers maintain production activity, protect employment and sustain export earnings.
Packaging plays an important role across Pakistan’s manufacturing and export sectors, with businesses relying on consistent supplies to maintain production and meet market requirements. The IFC financing is expected to strengthen these domestic supply chains while helping reduce dependence on imported packaging products. Greater availability of locally produced packaging materials could also improve the resilience of manufacturers that depend on packaging for their domestic and export operations.
The project also includes an environmental component through Novatex’s recycling activities. The company operates large-scale polyethylene terephthalate (PET) recycling facilities and is expanding its production capacity for recycled PET, commonly referred to as rPET. The expansion is intended to increase the use of recycled materials in packaging and contribute to Pakistan’s shift toward a circular economy.
Novatex’s recycling operations form part of its wider efforts to incorporate recycled materials into the packaging production cycle. Increasing recycled PET capacity can support greater reuse of plastic materials while providing packaging manufacturers with an alternative source of raw material. The initiative therefore combines industrial capacity expansion with efforts to improve resource efficiency within the packaging sector.
As part of the investment, IFC will also work with Novatex to strengthen its environmental and social management systems. The systems will be aligned with IFC’s Performance Standards, with the objective of encouraging stronger environmental and social practices within the company and supporting improved sustainability standards across the industry.
Wagner Albuquerque de Almeida, IFC Director for Manufacturing, Agribusiness and Services for the Middle East and Central Asia, said the investment would help sustain employment, strengthen export competitiveness and support an important manufacturing sector in Pakistan. He also highlighted the role of the financing in promoting more sustainable production practices.
The investment comes as Pakistan’s manufacturing sector continues to require financing for production capacity, supply chain stability and modernization. For companies operating in export-linked industries, reliable access to raw materials and equipment remains important for maintaining production and meeting the requirements of international customers.
Novatex Chief Executive Officer Rizwan Diwan described IFC as an important financial partner for Pakistani businesses. He said the financing represents the beginning of a broader relationship between Novatex and IFC, indicating the possibility of further cooperation between the two organisations.
The $20 million financing is therefore positioned to support both the immediate operational requirements of Novatex and longer-term objectives linked to manufacturing, exports and sustainability. Alongside financing for raw materials and equipment, the project’s focus on recycled PET and environmental and social management systems gives the investment a broader role in strengthening Pakistan’s packaging industry and its supply chains.
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