IFC’s US$20M Novatex investment enhances Pakistan’s packaging exports, rPET recycling capacity

PAKISTAN – The International Finance Corporation has announced a US$20 million investment in Pakistan’s Novatex Limited to support raw material imports, strengthen export competitiveness, and expand the company’s polyethylene terephthalate recycling capacity as Pakistan transitions toward a circular packaging economy.

The financing will enable Novatex to import critical raw materials and machinery, ensuring a stable domestic supply of plastic packaging materials while reducing reliance on imports and enhancing supply chain resilience for export-oriented sectors including food processing, pharmaceuticals and consumer goods. 

The investment is expected to help sustain employment, preserve export earnings and protect downstream industries from supply disruptions.

Sustainability and rPET Expansion

Novatex operates large-scale PET recycling plants and is expanding its rPET production capacity, contributing to Pakistan’s transition toward a circular economy in the packaging sector. 

IFC will assist the company in aligning its operations with the corporation’s environmental and social performance standards to further strengthen sustainable industry practices. 

The company manufactures flexible packaging, woven sacks, and preforms for the beverage and food sectors, with a new PET recycling facility in Karachi that processes post-consumer bottles into food-grade rPET. 

Novatex’s commitment to circular economy principles includes developing high-quality recycled content for packaging applications, reducing reliance on virgin plastics. 

The company’s recycling operations are designed to handle significant volumes of post-consumer PET waste, diverting plastic from landfills and creating a closed-loop system for packaging materials.

Economic Impact and Strategic Partnership

Wagner Albuquerque de Almeida, IFC Director for Manufacturing, Agribusiness and Services for the Middle East and Central Asia, stated that Pakistan’s long-term economic growth depends on sustaining competitive, export-oriented industries that create jobs, generate foreign exchange, and invest for the future. 

Novatex Chief Executive Officer Rizwan Diwan described IFC as an important financial partner for Pakistani corporates, saying the investment marked the beginning of a broader partnership between the two organisations. 

The financing aligns with IFC’s strategy to support private sector development in Pakistan, with the country’s packaging sector being a critical enabler for export growth and sustainable manufacturing practices. 

The investment also demonstrates international confidence in Pakistan’s manufacturing sector and its potential for sustainable growth, particularly as the country seeks to diversify its export base and reduce dependence on imported raw materials.

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