CoRe urges govt to prioritise waste management

Alliance calls for green financing, tax incentives to tackle growing environmental crisis

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KARACHI:

A multi-stakeholder packaging alliance, CoRe (Collect and Recycle), has called on the government to prioritise waste management reforms in the upcoming federal budget. The alliance urged urgent fiscal and policy support for strengthening the country's waste collection, recycling infrastructure, and waste-to-fuel initiatives to build a circular economy and drive sustainable development.

CoRe, comprising listed companies, NGOs, packaging manufacturers, recyclers, and multilateral organisations, submitted a comprehensive set of proposals to the Ministry of Finance and the Ministry of Climate Change and Environmental Coordination. The proposals include financing facilities from the State Bank of Pakistan (SBP) and tax incentives from the Federal Board of Revenue (FBR).

CoRe proposed a series of targeted fiscal measures which included the provision of green financing by the SBP to facilitate investment in waste collection and recycling initiatives. A five-year tax holiday has been recommended for both new and existing Packaging Recovery Organisations (PROs) operating across multiple cities, aimed at encouraging nationwide expansion.

CoRe also suggests the introduction of tax rebates or financial incentives for companies that meet defined recycling targets or utilise recycled materials in their packaging. To further ease the cost burden on the sector, the alliance has called for the exemption of sales tax and customs duties, and the implementation of a zero-tariff regime for the import of recycling equipment.

Additionally, to help formalise the informal sector, CoRe has proposed exempting General Sales Tax (GST) on services related to waste sorting, collection, and recycling.

The alliance also advocates for the reduction or elimination of duties on Reverse Vending Machines, which are instrumental in collecting plastic packaging waste. Lastly, incentivising infrastructure for converting plastic waste into fuel is seen as a crucial step toward creating a more sustainable and resource-efficient economy.

CoRe's recommendations are aligned with the government's broader sustainability agenda and the reform priorities of the IMF's Resilience and Sustainability Facility (RSF), said Sheikh Waqar Ahmad, CEO and Founding Board Member of CoRe. The 2025-26 budget is a crucial opportunity to introduce transformative fiscal policies that can drive green jobs, sustainable investments, and a waste-free future.

The call for reform comes amid growing concern over Pakistan's worsening waste crisis. According to the Asian Development Bank (ADB), the country's solid waste generation is projected to reach 42 million tons annually by 2030, straining existing infrastructure and environmental systems.