MNCs oppose recyclable bottles ban

Panic has gripped the American Business Forum (ABF), the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Collect and Recycle (CoRe) Alliance after the federal authorities suddenly decided to ban the use of recyclable bottles by the beverages sector in breach of international and local regulations.

The move to suddenly ban the use of 100% recyclable polyethene terephthalate (PET) in the Islamabad Capital Territory (ICT) has sent shockwaves, mostly among multinational companies, which were already complying with the international and local environmental standards. ABF requested the withdrawal of the proposed ban on PET bottles and the effective enforcement of the ICT Single-Use Plastics Regulations, 2023, in an appeal to the minister for interior.

Separately, the OICCI and the CoRe Alliance approached the minister for finance, minister for investment and minister for climate change to review the proposed ban, which was also threatening foreign investment and the circular economy.

"The CoRe Alliance seeks your office's intervention to withdraw the proposed ban on PET bottles, ensure effective enforcement of the ICT Single-Use Plastics Regulations, 2023, and support the government's broader efforts to promote ease of doing business, attract and retain foreign investment, and maintain a predictable, investment-friendly regulatory environment," read a letter sent to the investment minister.

The alliance ensured its commitment to advancing circular economy solutions in Pakistan. The multinational companies and their advocacy groups in Pakistan stated that the leading international regulatory frameworks, including the European Union's Packaging and Packaging Waste Regulation (PPWR), prioritise packaging recyclability, effective collection and recycling systems, and Extended Producer Responsibility (EPR), rather than imposing blanket bans on recyclable PET beverage packaging.

They panicked after the Islamabad Capital Administration started raiding shops for using PET bottles without realising that these bottles were already in compliance with the regulations. The alliance said that there was also no notification issued by the CDA or the Ministry of Interior for banning PET and its removal from trade. They said that the PET bottles were fully compliant with the Pak EPA Single-Use Plastics Regulations of 2023. PET is on the positive list of plastic packaging.

The alliance, the OICCI and the American Business Forum said that reportedly, on the instructions of the Office of the Chief Commissioner, and chairman Capital Development Authority (CDA), retailers and Fast-Moving Consumer Goods (FMCG) companies in ICT were advised to discontinue the sale of products packaged in polyethene terephthalate bottles across various categories.

The CoRe Alliance believes that such a ban would be scientifically unjustified, environmentally counterproductive, inconsistent with international circular economy best practices, and detrimental to businesses operating in the country, it added. Furthermore, the proposed ban contradicts the spirit of the ICT Single-Use Plastics (Prohibition) Regulations, 2023.

PET is a lightweight, food-grade, 100% recyclable polymer with an established collection and recycling value chain. Unlike some plastics, post-consumer PET bottles are commercially valuable and sought after for recycling into fibres, packaging and new bottles, supporting economic activity and livelihoods across collection, sorting and recycling.

A ban could undermine this circular economy value chain. Scientific life-cycle assessments evaluate packaging impacts from raw material extraction and manufacturing to transportation, collection and end-of-life management, according to CoRe. Replacing PET with glass, aluminium or other single-use alternatives may not improve environmental outcomes, as heavier materials can increase transportation emissions while others require more energy and resources for production, it added.

The priority should therefore be to strengthen existing PET waste collection, segregation and recycling systems to prevent environmental leakage, rather than banning a valuable and recyclable material, according to these representative bodies.

Similarly, the ICT Single-Use Plastics (Prohibition) Regulations, 2023, notified under the Pakistan Environmental Protection Act, 1997, already provides a regulatory foundation for addressing plastic pollution. Rather than pursuing a blanket PET ban, the government should strengthen implementation through mandatory producer-funded collection and recycling systems, measurable recovery targets, waste segregation and investment in recycling infrastructure, it added.

Various reports indicated that local administrative authorities commenced enforcement actions, which included the sealing of several retail outlets across the city. Industry experts and business leaders have warned against such coercive measures.