ISLAMABAD: Pakistan’s first multi-stakeholder packaging alliance, Collect and Recycle (CoRe) on Thursday urged the government to introduce fiscal and policy incentives in the Federal Budget 2026-27 to strengthen waste collection, recycling infrastructure, and circular economy initiatives. Sheikh Waqar Ahmad, CEO and Founding Director of the CoRe Alliance, in a statement issued here emphasised the importance of policy support in strengthening Pakistan’s recycling ecosystem.

“The federal budget presents a critical opportunity to advance green financing, incentivize investment in recycling infrastructure, and support the formalization of waste collection systems. These measures can contribute significantly to Pakistan’s climate reform agenda and complement broader policy reforms that may be supported through the Resilience and Sustainability Facility under the Staff-Level Agreement with the International Monetary Fund,” he said.

The CoRe Alliance recommended State Bank-backed green financing, tax incentives for recycling and packaging recovery projects, fiscal incentives for the use of recycled content, exemptions on taxes and duties for recycling equipment and services, reduced duties on Reverse Vending Machines, and support for plastic-to-fuel infrastructure.

Babar Aziz Bhatti, Chairperson of CoRe Alliance’s Extended Producer Responsibility (EPR) Committee & CEO, Green Earth Recycling said, “Pakistan’s recycling sector has significant economic and environmental potential. With the right policy support and investment incentives, the country can improve recycling rates, reduce packaging waste leakage, and advance a more sustainable and resource-efficient economy.”

In this regard, CoRe Alliance, in the statement recommended for Budget 2026–27 the availability of Green Financing by State Bank of Pakistan to promote waste collection and recycling, five-year tax holiday for new and existing collection and recycling projects (Packaging Recovery Organizations) for multiple cities of Pakistan and introduction of tax rebates/financial incentives for companies achieving recycling targets or producing packaging made from recycled materials. It also suggested exemption of sales tax, custom duty and zero tariff regime for import of equipment for recycling projects, exemption of General Sales Tax (GST) on waste sorting, collection, and recycling services to formalize the informal sector and abolishing/reducing duty for Reverse Vending Machines for collection of plastic packaging waste. It recommended incentivization of the plastic-to-fuel industry/infrastructure.

Earlier this year, the CoRe Alliance shared its white paper on a harmonized and phased framework for collection and recycling in Pakistan with the Ministry of Climate Change and Environmental Coordination.

CoRe Alliance currently comprised 32 of the country’s industry players, recyclers, academic institutions, NGOs, development organizations, and multinational companies working collectively to eliminate packaging waste and advance circular economy solutions in Pakistan.

Published in Dawn, June 5th, 2026