ISLAMABAD, May 29 : China’s rise as a global leader in circular economy development offers Pakistan a potential roadmap for cleaner industrial production, resource efficiency and higher value-added growth, according to experts and policymakers who say stronger implementation will be key to achieving similar outcomes.
As Pakistan seeks to balance economic expansion with environmental sustainability, analysts point to China’s integration of circular economy principles into national planning as a model for reducing waste, improving productivity and supporting green industries. China has expanded investments in sectors including solar power, wind energy, hydrogen, energy storage, carbon capture and biodegradable materials as part of its long-term development strategy.
China’s 2026 government work report set a target of reducing carbon dioxide emissions per unit of GDP by 3.8 percent. Under its 14th Five-Year Plan, the country has prioritised resource recycling, aiming to increase resource productivity by around 20 percent while lowering energy and water consumption per unit of GDP. The plan also seeks to develop a resource recycling industry valued at 5 trillion yuan.
Experts call for integration into industrial policy
Speaking to Wealth Pakistan, energy efficiency expert and ESG Nexus CEO Engr. Asad Mahmood said Pakistan should move beyond viewing the circular economy as solely an environmental or waste-management issue.
He said circular economy principles should be incorporated into industrial policy through targeted incentives, formal value chains and sector-specific strategies that encourage cleaner and more efficient production. Mahmood noted that adopting green technologies can lower industrial energy costs and improve competitiveness, but success will also depend on developing technical skills, certification systems and resource-efficient manufacturing processes.
He added that the transition could create new employment opportunities in technical fields, particularly as industries adopt electric vehicles, advanced manufacturing systems and other emerging technologies.
Institutional coordination remains a challenge
Umair Rahman, Associate at the Office of the Coordinator to the Prime Minister on Climate Change and Environmental Coordination, said China’s experience highlights the importance of institutional integration and coordinated implementation.
According to Rahman, China embedded circular economy principles across government planning and used state institutions to support investment and market development. He noted that Pakistan already has policy tools, including its Nationally Determined Contributions (NDCs) and the Pakistan Green Taxonomy, but implementation and coordination across sectors remain significant challenges.
The State Bank of Pakistan has advised financial institutions to use the Green Taxonomy as a reference framework for green banking policies, while climate-related policy initiatives continue to expand. Rahman said renewable energy, green hydrogen, carbon capture technologies, biodegradable materials and electric transport could support Pakistan’s transition toward higher-value industrial production.
Turning waste into economic opportunity
According to the Sustainable Development Policy Institute’s report on Pakistan’s circular economy, the country generates nearly 49.6 million tonnes of solid waste annually. Less than 20 percent of that waste is formally collected, while only a small proportion is recycled.
Experts say Pakistan can build on its existing informal recycling and reuse systems by improving regulation, strengthening safety standards and enhancing data collection. They also recommend expanding green financing, promoting biodegradable packaging, supporting small and medium-sized enterprises and using the China-Pakistan Economic Corridor’s green initiatives to facilitate technology transfer.
Analysts believe a well-implemented circular economy strategy could help Pakistan reduce waste, improve energy efficiency and create new industrial opportunities. They argue that the country’s main challenge is no longer the absence of policy frameworks, but ensuring effective and timely implementation.
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