Packages Limited, Pakistan’s leading paper and board manufacturer, has received a redemption notice from the International Finance Corporation (IFC) to redeem 2 million preference shares out of the 8,186,842 outstanding shares issued under a 2009 agreement.
The notice, dated January 23, 2026, was disclosed to the Pakistan Stock Exchange (PSX) on Monday, prompting a board meeting scheduled for January 27 to deliberate on the request.
Transaction Details and Historical Context
The redemption pertains to preference shares/convertible stock subscribed by IFC on March 25, 2009. This move allows IFC to partially exit its investment in the company. Packages Limited was founded in 1957 as a joint venture between Pakistan’s Ali Group and Sweden’s Akerlund & Rausing.
Initially focused on converting paper and board into consumer packaging. Over the years, it has grown into a major player in Pakistan’s industrial sector. In 2019, IFC invested $50 million in equity to strengthen the company’s capital base.
This funding aimed to enhance cost competitiveness and resilience amid global economic challenges. The investment supported direct employment of nearly 3,500 people and indirect jobs for about 27,000.
Implications and Board Response
The partial redemption could signal IFC’s strategic portfolio adjustment. No specific financial value for the redeemed shares was disclosed. The board will review the request in its upcoming meeting.
Outcomes of the deliberation will be announced subsequently.
This development highlights ongoing international investment dynamics in Pakistan. Packages Limited continues to play a key role in the economy.
The redemption aligns with standard rights under the subscription agreement.
It may influence investor sentiment on PSX. Overall, it reflects maturity in long-term financial partnerships. Stakeholders await further details post-board decision.