Press Release
VIS Reaffirms Entity Ratings of International Packaging Films Limited
Karachi, February 16, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of International Packaging Films Limited (‘IPAK’ or ‘the Company’) at ‘A/A1’ (Single A/A One). Medium to long term rating of 'A' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A1' suggests strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous ratings action was announced on December 09, 2024.
IPAK was incorporated as a private limited company on October 2, 2015. The Company’s status was converted to a public limited company on June 11, 2021, and subsequently listed on the Pakistan Stock Exchange on June 3, 2024. IPAK is primarily involved in the production and sale of flexible packaging materials, including BOPP (Biaxially-oriented Polypropylene) films and related products. It commenced commercial operations in September 2017. The registered office is located in Karachi, while the manufacturing plant is situated at IPAK Plant, Manga Chowk, Raiwind, Bypass Road, Raiwind district, Lahore Punjab.
The assigned ratings reflect IPAK’s established market position in the BOPP films segment, supported by a diversified customer base and long-standing relationships with leading FMCG players. While topline growth has remained subdued, the Group’s scale, market presence, operational synergies, and efficiency initiatives are expected to support revenue growth and profitability over the medium term. Debt servicing capacity remains adequate, and the capitalization profile is assessed as conservative. The ratings also factor in the medium-to-high business risk inherent in the packaging sector, characterized by earnings volatility due to reliance on imported raw materials, exposure to global polymer price and exchange rate fluctuations, and an intensely competitive operating environment.
However, the Parent’s financial risk profile reflects sizable investments in subsidiaries amounting to approximately Rs. 14 billion, undertaken to expand overall group capacity. These investments were funded through a combination of equity, long-term financing, and accumulated profits.
Notwithstanding the long-term nature of the funding mix, short-term liquidity indicators were impacted during the expansion phase, partly due to timing differences between capital deployment and the realization of associated cash flow benefits. As subsidiary operations stabilize, improving profitability and cash flow contribution will remain important to strengthen the Parent’s standalone liquidity profile and financial metrics.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf