RIAA Barker Gillette acted as lenders’ counsel to a syndicate led by Bank AL Habib Limited on a PKR 2.5 billion Islamic finance facility for PetPak Films (Private) Limited, supporting growth in Pakistan’s packaging industry.
The transaction demonstrates the increasing sophistication of Islamic finance in Pakistan’s manufacturing sector. PetPak Films, a subsidiary of International Packaging Films Limited (IPAK), operates a state-of-the-art facility at Quaid-e-Azam Business Park Special Economic Zone in Sheikhupura. The company manufactures Biaxially Oriented Polyethylene Terephthalate (BOPET) films, which serve critical applications in food packaging, pharmaceuticals, and industrial uses.
The financing was structured as a musharaka facility—an Islamic profit-and-loss sharing arrangement that complies with Shariah principles. This diminishing co-ownership model balances Islamic finance requirements with commercial objectives for both lenders and borrower.
The syndicate comprised five financial institutions, reflecting the approach increasingly common in Pakistan’s banking sector for significant manufacturing investments. RIAA structured the documentation to accommodate multiple lenders while ensuring Shariah compliance throughout the transaction lifecycle.
The firm advised on comprehensive security arrangements including charges over assets and sponsor support, balancing the interests of new lenders with existing creditor arrangements. The transaction was structured to meet lenders’ requirements while preserving operational flexibility for the manufacturing business.
Bilal Shaukat, Managing Partner at RIAA Barker Gillette, observed: “This transaction demonstrates the sophistication of Pakistan’s Islamic finance market and our capability to structure compliant facilities for major manufacturing investments. It reflects growing lender confidence in Pakistan’s industrial sector.”
PetPak’s financing contributes to the broader expansion of the IPAK Group, which has emerged as Pakistan’s largest flexible packaging films manufacturer. The company’s operations support Pakistan’s packaging industry development and align with national objectives for manufacturing sector growth and export expansion.
Our team advising the lenders was led by Bilal Shaukat (Managing Partner – Pakistan) and included Rohaan Nasir (Associate).
For further information on Islamic financing transactions, please contact Bilal Shaukat.
This article is not legal advice; it provides information of general interest about current legal issues.
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RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in three major cities in Pakistan: Karachi, Islamabad and Lahore, and affiliated offices in Dubai (DIFC) and London.
The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognise the firm as a top-tier law firm in Pakistan.
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