Consistent with the reform priorities of IMF’s Resilience & Sustainability Facility, Pakistan’s first ever packaging alliance CoRe has called for government’s immediate attention towards strengthening infrastructure for waste collection, recycling, converting waste to fuel as well as tax rebates and financial incentives for companies operating in this domain.
Key proposals include financing support from the State Bank of Pakistan and tax benefits from the Federal Board of Revenue (FBR), including a five-year tax exemption for Packaging Recovery Organizations and a zero-tariff regime on recycling equipment and Reverse Vending Machines. Additionally, promoting infrastructure for converting plastic waste into fuel, introducing tax rebates or financial incentives for companies meeting recycling targets or using recycled materials, and exempting General Sales Tax (GST) on waste sorting, collection, and recycling services to formalize the informal sector are seen as crucial for sustainability.
These proposals come amid mounting concerns over Pakistan’s waste trajectory. According to the Asian Development Bank, solid waste generation in the country is expected to reach 42 million tons annually by 2030 — a challenge compounded by inadequate recycling infrastructure.
Sheikh Waqar Ahmad, CEO and Founding Board Member CoRe, emphasized, “CoRe’s recommendations are intended to support the government’s broader sustainability agenda, which has advanced under a possible arrangement under the Resilience and Sustainability Facility as part of the Staff Level Agreement with the IMF.”
“The budget 2025-26 is a key opportunity to introduce policies supporting waste management and these measures will drive economic growth through sustainable investments and a waste-free future,” he added.
Hammad Naqi Khan, CEO WWF-Pakistan and Board Member CoRe, stressed the need for policy-driven action, stating, “Incentivizing collection and recycling promotes circularity and is key to tackling Pakistan’s waste challenges.”
Babar Aziz Bhatti, CEO Green Earth Recycling and Chairperson of the Extended Producer Responsibility (EPR) Committee of the CoRe Alliance, stated, “Investing in collection and recycling infrastructure is key to reducing waste, generating green jobs, and driving sustainable development in Pakistan.”
The proposals were submitted to Federal Minister for Finance & Revenue Muhammad Aurangzeb, and Federal Minister for Climate Change & Environmental Coordination Musadik Masood Malik. They underscore the importance of advancing a circular economy through targeted fiscal measures and public-private partnership.
Earlier this year in February, CoRe hosted a multistakeholder event where public and private sector partners discussed the need for stronger environmental regulations and policies for a circular economy. One of the key outcomes was the agreement on harmonized environmental regulations across provinces to help ease collection and recycling efforts.
CoRe is committed to policy reforms and collaboration to enhance Pakistan’s waste management and recycling ecosystem. Through public-private partnerships and fiscal measures, CoRe seeks to drive a circular economy for long-term sustainability and economic resilience, aligning with United Nations Sustainable Development Goals (SDGs). These include Goal 12 Responsible Consumption and Production, Goal 13 Climate Action, and Goal 17 Partnerships for the Goals. CoRe seeks to drive a circular economy for long-term sustainability and economic resilience.
About CoRe Alliance
Currently, CoRe’s members include Circular Plastics Institute (CPI), Coca-Cola Company, Ecolean, English Biscuit Manufacturers (Pvt.) Ltd., Engro Polymer & Chemicals, Five Star Polymers Ltd., FrieslandCampina, Green Earth Recycling, Jazz, Lucky Core Industries Limited, METRO, Mondelēz Pakistan Limited, National Foods Limited, Nestlé Pakistan, Novatex, Packages Limited, PARCO, PepsiCo, Sustainable Development Policy Institute (SDPI), SPEL, Tetra Pak, Parco Gunvor, Unilever, United Nations Development Programme (UNDP), and WWF-Pakistan.
