Govt, MNCs in deadlock over PET bottle ban

The government and multinational companies (MNCs) failed to break a gridlock over a sudden ban on the use of recyclable bottles by the food and beverages industry, driven by the authorities' desire to present Islamabad as a plastic-free city at the upcoming Shanghai Cooperation Organisation (SCO) summit.

A meeting this week between Minister of State for Interior Talal Chaudhry, whose subordinate department initiated the action, and representatives of Nestlé, Coca-Cola, PepsiCo and Metro remained inconclusive, according to people privy to the discussions.

The companies were of the view that there was no legal ban on the use of recyclable plastic, and that the existing ban was justified. Their stance has also been supported by the Pakistan Environmental Protection Agency (Pak-EPA), whose director has publicly stated that existing regulations do not ban PET (polyethylene terephthalate) bottles.

Dr Zaigham Abbas, an official of the federal agency, reportedly said there was no legal basis for removing PET bottles from sale. He said the clarification has been conveyed to the Islamabad Capital Territory (ICT) administration.

However, despite these explanations, including international examples, details of existing recycling practices and the industry's position that no commercially viable substitute is currently available at the required scale, the government continued to emphasise the need to explore alternative packaging solutions, particularly glass bottles, according to industry representatives.

They said the sudden ban on PET bottles would also dent federal tax revenues by at least Rs10 billion, in addition to sending negative signals to international investors about the government itself violating environmental regulations.

Industry representatives said the government appeared determined to pursue its objective of presenting Islamabad as a plastic-free city ahead of the upcoming SCO summit. Despite the industry's explanations regarding the existing legal framework, established recycling practices and the lack of commercially viable alternatives at scale, the government remained focused on finding alternatives to plastic PET bottles, with glass packaging and paper solutions.

The summit is scheduled to take place next month, and the government plans to serve food and drinks in plastic-free material, the industry was told this week. But industry representatives said establishing a glass bottle factory would require significant investment and take at least two years.

The American Business Forum (ABF), the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Collect and Recycle (CoRe) Alliance had also separately raised the issue with federal authorities. But so far there has been no breakthrough.

The 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.

Officials said the minister of state for interior acknowledged that existing law contained relevant provisions but emphasised that Pakistan was scheduled to host the SCO summit in approximately 10 months. The government aims to present Islamabad as a plastic-free city during the event.

The minister's view could not be immediately obtained.

Industry representatives said the government was still urging all multinational companies to propose viable alternatives to plastic PET bottles.

They said another meeting will be held next week to discuss the matter in greater detail. They said there were indications the government may not take any negative action on retail until an expert meeting planned for next week.

The minister advised company representatives to prepare their respective cases thoroughly and come equipped with all relevant technical details, supporting evidence and expert input to substantiate their positions.

In an opinion piece published in The Express Tribune, the writer wrote that within days, a campaign against litter had become a campaign against lawful trade. The article stated that Islamabad does have a plastics law. The Single-Use Plastics (Prohibition) Regulations, 2023 were made by the Pak-EPA under the Pakistan Environmental Protection Act, 1997.

They name PET in their definition of plastic, then ban six items: polythene bags, straws, plastic crockery, cutlery, food-service ware and stirrers. PET bottles are not on the list. Instead, from July 2028, beverage bottles must contain at least 50% recycled plastic. The choice was deliberate: PET is to be recycled, not banned.