IFC backs Pakistan’s Novatex with $20m loan

August 07, 2026 (MLN): 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 Pakistan's plastic packaging industry and strengthening supply chains for export-oriented sectors.

The financing is aimed at ensuring the continued availability of packaging materials used by industries such as food processing, pharmaceuticals and consumer goods, helping local manufacturers maintain production, protect jobs and sustain export earnings.

The investment is also expected to reduce dependence on imported packaging products while improving the resilience of domestic supply chains.

The project also supports environmental sustainability through Novatex's recycling operations.

The company operates large-scale polyethylene terephthalate (PET) recycling facilities and is expanding its recycled PET (rPET) production capacity to promote the use of recycled materials in packaging and support Pakistan's transition toward a circular economy.

As part of the investment, IFC will work with Novatex to strengthen its environmental and social management systems in line with IFC's Performance Standards, encouraging improved sustainability practices 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, enhance export competitiveness and reinforce a key 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 organisations.

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