Circular Economy in Pakistan: Challenges and Opportunities

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With a tradition of reuse and recycling, Pakistan stands at a crossroads. Will its shift to a circular economy redefine sustainability and economic resilience for the future?

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Circular Economy

Pakistan faces immense challenges in sustainable management of its resources, especially as its current economic crisis pushes it to adopt greater economic growth. The limited availability of resources on the production side and the problems of environmentally sustainable waste disposal on the other, pose significant challenges for the country. Increasing global recognition of the importance of the circular economy however offers an opportunity for Pakistan, a country which has a tradition of using elements of the circular economy. 

While the current global model of growth emphasises constant consumption, putting a strain on finite resources and creating islands of waste after short-term usage, the principles of the circular economy to eliminate, circulate, and regenerate[i] , offer the possibility of mitigation. For Pakistan, a move towards a circular economy – a model that emphasizes reusing, recycling, and regenerating resources – is a path towards a sustainable, self-sufficient economy.

Existing Circular Practices in Pakistan 

Despite the lack of formal systems, the practice of recycling is widespread in Pakistan and has been in use long before it’s more recent adoption as an environmentally-conscious global practice.  Emphasising the prevalence of recycling in Pakistan, water resource management expert Dr. Hassan Abbas pointed to the use of old cars as an example. “You can see cars from the 1980s on the street that have been refurbished, and if they aren’t working anymore, their engines have been taken out to be used as generators.” 

Pakistan’s waste recycling economy provides livelihood to thousands of people, especially from the poorest sections, and also enables repurposing or reusing of significant amounts of materials. However, it is informal and unregulated and the rag pickers and garbage segregators earn very little. City dumps for instance, are often scavenged by impoverished children and adults looking for recyclable materials to sell. According to Dr. Abbas, this informal system continues to thrive because of the profitability of recycled materials and the income that it provides. “If you ever visit industrial areas like Sanda, Lahore, you will see that plastic is being turned into pellets which are remade into new products. A circular economy exists in Pakistan, but why can’t we see the way waste is reused in products? That is what needs to be explored.”

Pakistan’s waste economy, currently scattered and unorganised, could become a driving force for a more structured circular economy. With proper regulation, environmental health and safety considerations, and data collection, Pakistan can transform this informal waste management system into an efficient, inclusive and sustainable resource management model.

The Limitations of Recycling 

While recycling is often heralded as the solution, it is only one part of a circular economy and insufficient by itself to drive any change towards sustainable use of resources. While recycling begins at the end of the lifecycle of a product, the circular economy goes to the start of the lifecycle where products and materials are designed to be reused, repaired and remanufactured. In other words, while recycling repurposes waste, a circular economy attempts to eliminate waste from being created in the first place. 

Moreover, recycling itself has limitations. Of the 6.3 billion metric tons of plastic waste produced worldwide by 2018, only 9% has ever been recycled[ii]. In Pakistan, recycling is often driven by profit rather than environmental concerns, which can limit its effectiveness. 

Gohar Abbas, CEO of Green Tech Polymer in Lahore, explained that many large corporations promote recycling methods that degrade the quality of materials. For instance, when plastic is recycled into granules, its polymer structure and colour are often compromised, making it less useful for future products. He suggested that a comparatively more sustainable option would be to convert polyethylene terephthalate (PET) plastic into polyester fibre, which is consistently needed for clothing production and has a longer life cycle. However, both the source material and the recycled product are non-biodegradable and therefore add to environmental contamination at the end of their lifecycle, even when reused.

Technological Innovation 

Pakistan has the potential to lead in circular innovation with examples already emerging from its universities. One notable development is the recent work on building a carbon dioxide sequestration device by Professor Dr. Fahim Khokhar and his team at the National University of Sciences and Technology (NUST). This device has the potential to absorb CO2 from the atmosphere, producing a carbonized by-product that can be sold to industries manufacturing surfactants, soaps, and other products. By turning waste into a valuable resource, this innovation aligns with the core principles of a circular economy and demonstrates how Pakistan can make strides toward sustainability with the right technological advancements. However, carbon sequestration and reuse require enormous energy and is not cost or resource effective currently. 

Consumerism and the Circular Economy 

Adopting a circular economy on a larger scale will require more than just technological solutions — it will also demand a shift in consumer behaviour. Even when recycled materials are available, consumer preferences can interfere with the adoption of circular practices. Mr. Abbas recounted a case where a multinational corporation had to withdraw a product made from recycled plastic because customers found the discoloured bottle aesthetically unappealing. This demonstrates how consumer demand for visually appealing products can undermine efforts to promote recycling. Ms. Shiza Aslam, Director and Head of Research at the Circular Plastic Institute in Karachi, said that consumer, or demand-focused policies are more likely to be pushed forward because supply-focused policies may not be enough to solve environmental issues. Ms. Aslam was of the opinion that economy is the keyword in a circular economy. Much like Dr. Abbas, she believed that though circular practices exist in Pakistan, when framing it purely from the lens of sustainability, there could be barriers to understanding and implementing it, such as the lack of purchasing power or awareness of the benefits of sustainable alternatives.

Ms. Aslam emphasised that these circular practices are often limited to small-scale, localized efforts that stem from economic constraints, such as poverty, rather than a commitment to sustainability. For example, people reuse and repair products to save money, not necessarily to reduce waste. This shows that a circular economy can be incentivized in different ways, as some people may be motivated by environmental protection, while others can be motivated by economic gain. 

The informal nature of these practices also presents an opportunity. "The smaller and more localized these efforts are, the easier they are to manage" Ms. Aslam pointed out. Different industries. whether it be the automotive sector, agriculture, or food production, will require tailored approaches to align their practices with circular economy principles.

Conclusion 

Pakistan’s existing circular practices are often economically motivated rather than environmentally driven, but the potential for growth is enormous. To fully realize the benefits of a circular economy, Pakistan must invest in raising awareness and educating its population about the environmental and economic advantages of sustainable practices.

This cultural shift must be supported by political will and structural changes. Policymakers need to create an enabling environment through regulations, incentives and infrastructure that promote sustainable practices and resource management. Additionally, encouraging sustainable consumer behaviour is essential to align economic activities with environmental goals.

Pakistan stands at a critical juncture, where the adoption of a circular economy can lead to a more sustainable and resource-efficient future. By harnessing its existing informal practices and investing in innovation and regulation, Pakistan can transform its challenges into opportunities for a more resilient, circular economy.