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Washington, D.C., April 15, 2009
—IFC, a member of the World Bank Group, is making a $50 million equity investment in Packages Limited, Pakistan’s largest paper and board producer, to support a socially responsible company that directly provides jobs for nearly 3,500 people and indirectly employs about 27,000 people.
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 IFC’s support, the company will also undertake several programs designed to have a positive impact on climate change. The programs include increased waste-paper collection and the installation of waste-heat recovery systems and closed-loop systems for water at company factories.
Michael Essex, IFC’s Director for Middle East and North Africa, 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."
Syed Babar Ali, Advisor to Packages, 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 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. 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.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About Packages
Packages Limited, established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden, is the largest integrated pulp and paper and paper board producer in Pakistan. It is the only local supplier of consistent, premium quality packaging solutions for its consumer industry related clients. For more information, visit
www.packages.com.pk
.
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