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.

IFC Middle East and Central Asia agribusiness and services manufacturing director Wagner Albuquerque de Almeida said: "Pakistan's long-term economic growth depends on sustaining competitive, export-oriented industries that create jobs, generate foreign exchange, and invest for the future.

"IFC's investment in Novatex will help sustain employment, support export competitiveness, and strengthen the resilience of a key manufacturing sector while advancing more sustainable production practices.”

Founded in 1991, Novatex makes PET resin, rPET, PET preforms and biaxially oriented PET (BoPET) film.

The company accounts for more than 65% of Pakistan’s PET resin market and more than half of each of its other business segments.

It is the country’s largest non-textile exporter, selling PET products in more than 40 countries and serving multinational customers.

The company has built two PET recycling plants with the ability to process two billion bottles a year.