International Finance Corporation (IFC) has decided to make a 50 million-dollar equity investment in Packages Limited, Pakistan's largest paper and board producer, to support a socially responsible company that directly provides jobs to nearly 3,500 people and indirectly employs about 27,000.
According to a statement issued by the IFC chief of mission, the investment will help Packages Limited enhance its capital base, improve cost competitiveness and strengthen its ability to handle the effects of the global economic crisis.
With the IFC's support, the company will also undertake several programmes designed to have a positive impact on climate change. The programmes include increased waste-paper collection and the installation of waste-heat recovery systems and close-loop systems for water at company factories.
IFC Director for Middle East and North Africa Michael Essex said: "This investment underscores IFC's commitment to providing its clients with capital and other support to help them comfortably withstand the current global economic crisis."
Advisor to Packages Syed Babar Ali said: "The IFC equity investment supports the Packages Group's commitment to sound and transparent financial systems and promoting environmental and social values. This is the fourth time that Packages has received an equity investment from the IFC, and it is indeed a reflection of the long-term relationship between Packages and the IFC, whose standards we respect and uphold."
"The investment will allow Packages Limited to improve efficiency in water and steam usage, thus reducing operating cost and improving competitiveness. "The IFC's continued financing in the current difficult markets will help sustain local employment and support the company's community development initiatives, such as the upgrading of nine schools and the provision of fresh water," he added.
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