Business

IFC invests $15m in Engro Polymer

Funding will help create jobs, improve resource efficiency and drive economic growth

Our Correspondent July 27, 2021

ISLAMABAD:

A new investment of $15 million is expected to help increase the availability of hydrogen peroxide and boost competitiveness of polyvinyl chloride (PVC) and the base chemical sector, while tackling climate change in Pakistan.

According to a statement issued on Monday, this investment by the International Finance Corporation (IFC) in Engro Polymer and Chemicals Limited (EPCL) is projected to create jobs, improve resource efficiency and drive economic growth in the country.

“IFC’s support will allow EPCL to expand its product range to include hydrogen peroxide, supporting the growth of textile, buildings, and construction sectors in Pakistan,” the statement said.

Furthermore, “IFC’s long-term investment will contribute approximately $57 million to the nation’s economy through efficient linkages to the local supply chain and an additional $28 million through induced effects.”

The funding will enable EPCL to reduce the use of imported ethylene in the raw material mix for PVC production.

While reducing PVC manufacturing costs, it will help the company enter the hydrogen peroxide market - with a capacity of 28,000 metric tons - as the lowest-cost producer in the country.

Moreover, the climate change mitigation project is also expected to reduce greenhouse gas (GHG) emissions of around 23,074 tons of CO2-equivalent annually and 3,540,000 m3 of natural gas use annually.

IFC Senior Country Manager for Pakistan Nadeem Siddiqui said, “Our investment in EPCL will help in cost-efficient production of critical raw materials that are used across sectors in the economy, including construction, agriculture packaging, and fast-moving consumer goods.”

He added that this would contribute to the sectors’ growth momentum backed by a growing population, infrastructure development, and public infrastructure projects.

Published in The Express Tribune, July 27^th, 2021.

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