World Bank Group member IFC has extended a loan of up to $20m to Novatex, a plastic resin manufacturer in Pakistan.
The loan will fund imports of key raw materials and machinery for packaging
According to IFC, the financing is aimed at helping local manufacturing while supporting employment, export income and the stability of domestic supply chains. The move is expected to limit dependence on imported packaging supplies and reduce the risk of disruption for manufacturers that rely on them. The transaction is also tied to IFC’s environmental priorities.
Novatex CEO Rizwan Diwan said: “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.” Novatex runs PET [polyethylene terephthalate] recycling facilities and is increasing its recycled PET (rPET) output, in line with a gradual shift in Pakistan’s packaging industry towards more circular use of materials. IFC said it will assist the company in bringing its operations into line with IFC Performance Standards on environmental and social management.