Arsalan Ali

The circular economy can offer sustainable solutions to Pakistan's economic and environmental challenges, but it faces significant obstacles, including limited awareness and capacity, inadequate waste management infrastructure, and a lack of supportive policies, according to WealthPK. Ms. Azmat Naz, a deputy director at the Environment Protection Department of Punjab, told WealthPK that the circular economy is gaining global momentum as a solution to environmental degradation, resource depletion, and climate change.

‘’The circular economy will help us address rapid urbanization while promoting economic growth and job creation. It will also help keep resources in use for as long as possible through strategies such as recycling, reusing, and remanufacturing. Adopting circular principles can reduce waste and pollution, conserve natural resources, and enhance resource efficiency. It has potential in various sectors, including agriculture, textiles, and energy,’’ she said.

According to the Economic Survey of Pakistan, the agriculture sector contributes 22.7 percent to Pakistan’s economy and employs 37.4 percent of the workforce. Azmat said traditional farming practices have led to soil degradation, water scarcity, and loss of biodiversity, which threaten the sector's sustainability.

In the agriculture sector, circular economies promote sustainable land use and reduce waste through organic farming and agroforestry. According to Azmat, organic farming uses natural methods to enhance soil health and biodiversity. Agroforestry integrates trees into the farming system to enhance soil fertility, and conserve water.

In the industrial sector, the textile sector contributes to Pakistan’s economy and accounts for 60 percent of its exports. This industry faces significant environmental challenges such as water scarcity, pollution, and waste generation. According to WealthPK research, textile exports during the first eight months (July-Feb) of this fiscal year were recorded at $11.24 billion.

Naz added that circular economies in the textile sector could reduce waste and pollution. The energy sector is another area where the circular economy presents significant opportunities for Pakistan. Pakistan is highly dependent on fossil fuels for energy. Data from the Pakistan Bureau of Statistics shows that the petroleum group import bill stood at $11,876.711 million during July-Feb of FY23 against $12,948.503 million during the same period last year. This represents an 8.28 percent decline.

However, Pakistan also has significant potential for renewable energy, particularly solar and wind. This can enhance energy security and reduce greenhouse gas emissions and petroleum group's import bill to help save foreign reserves. Despite its huge potential, Pakistan’s circular economy faces several challenges such as limited awareness and capacity among stakeholders, inadequate waste management infrastructure, and lack of policies that incentivize circular practices.

Addressing these challenges requires a collaborative approach among the stakeholders, including the government, the private sector, civil society, and international donors, Azmat said. According to the World Bank data available with WealthPK, Pakistan needs a total investment of USD348 billion (or 10.7 percent of cumulative GDP) between 2023 and 2030 to address climate and development challenges comprehensively. Out of the total investment, USD152 billion is required for adaptation and resilience and USD196 billion for deep decarbonization. This investment is crucial to sustainable development and mitigation of climate change’s impact on the country.

Credit: Independent News Pakistan-WealthPk