Pakistan Can Become Recycling Hub But First Needs to Address Challenges that Deter Growth

Pakistan can transform its textile recycling industry, reduce environmental impact, enhance economic growth, and position itself as a leader in sustainable textile production by addressing the various challenges and leveraging opportunities, that will not only benefit the domestic economy but also align the country with global sustainability trends, ensuring long-term competitiveness, says a new report.

Long Story, Cut Short
  • The findings highlight Pakistan’s position as a major player in textile recycling, with significant opportunities to scale textile-to-textile recycling through improved waste management, investment, and supply chain development.
  • Addressing the challenges will enhance sustainability, improve economic viability, and strengthen Pakistan’s position in the global recycled textile market.
  • The Pakistan Textile and Apparel Policy 2020–25 includes some provisions for recycling, but they fall short of addressing the industry’s needs comprehensively.
As a top textile producer, Pakistan must expand sustainably while managing its 887 kilotons of pre-consumer textile waste and 809 kilotons of imported second-hand clothing.
From Waste to Value As a top textile producer, Pakistan must expand sustainably while managing its 887 kilotons of pre-consumer textile waste and 809 kilotons of imported second-hand clothing. Despite a strong recycling culture, the sector remains informal, limiting its circular economy potential. A new research finds that investment, digital tracking, and policy reforms could position Pakistan as a global leader in textile-to-textile recycling, boosting the economy while cutting waste. Reverse Resources

Pakistan can position itself as a central hub of recycled materials, reduce waste leakage, and meet rising global demands for sustainable textile products if it addresses the various challenges that deter growth and could enhance efficiency, environmental stewardship, and overall sustainability in the textile sector, says a new report.

  • The report delivers actionable insights aimed at fostering a circular textile economy in Pakistan, reducing waste and environmental impact while unlocking economic opportunities.

The report—Comprehensive Overview of the Pakistan Textile Waste Industry—a joint effort by National Textile University and Reverse Resources, lists the challenges, opportunities and strategic actions as follows:

GENERAL CHALLENGES

  • Recycling complexity: In Pakistan, the majority of waste is recycled through mechanical recycling. However, this method is best suited for mono materials and poses significant challenges when dealing with blended materials. This process often produces fibres of lower quality and shorter lengths, limiting their reuse to low-grade products.
  • Manufacturer-related challenges: Lack of textile waste management: Textile manufacturers instead of actively handling or recycling their own waste, mostly sell or pass it on to waste handlers or recycling companies without considering the environmental benefits.
  • Lack of proper waste segregation: The lack of proper waste segregation at the factories has resulted in inconsistencies and a lack of transparency in waste flow. Manufacturers often sell mixed waste through a cost-bidding process without prior sorting, relying on waste handlers and sorters to segregate the materials. This creates significant challenges for sorters, who struggle to accurately separate the waste by fabric type or colour.
  • Contamination: Manufacturing waste, particularly pre-consumer waste, is often contaminated with materials such as metals, oil stains, wrappers, trims, mixed fabric, and paper. Dust from improper cleaning also contributes to this contamination, and the occasional disposal of waste in bins leads to additional contamination. As a result, this makes the sorting process more difficult and significantly hinders the ability to recycle or repurpose textile waste effectively.
  • Compliance & due diligence regulation: Adhering to standardised waste management practices remains a major challenge. Weak enforcement and poor practices make it hard for manufacturers to follow international waste management rules.
  • Waste handlers-related challenges: The management of textile waste in Pakistan, although crucial, faces challenges that include inefficient waste collection system, decolourisation or bleaching, social issues, fragmented and informal textile waste value chain, decolourisation or bleaching.
  • Recyclers-related challenges: High energy costs, limited infrastructure and facilties, mechanical recycling limitations, quality Issues in recycled yarn, regulatory and policy gaps act as deterrents in establishing the country as a circular sourcing hub.

CALL TO ACTION: The report suggests the following strategic initiatives to help Pakistan improve its textile recycling ecosystem and align it with global standards:

  1. Improve transparency and accessibility of textile waste
  2. Establish a waste collection and material sorting system
  3. Promote collaboration between stakeholders
  4. Strengthen legislation for recycling and circular economy
  5. Invest in advanced recycling technologies
  6. Support small-scale designers and sustainable fashion
  7. Launch public awareness campaigns on textile recycling

THE PROJECT: This research, conducted by Reverse Resources (RR) in collaboration with the National Textile University (NTU) Faisalabad and KnowTex, is part of the Sustainable Manufacturing and Environmental Pollution (SMEP) programme, funded by the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) and implemented in partnership with the United Nations Conference on Trade and Development (UNCTAD).

LEAD AUTHORS: National Textile University’s Dr. Syeda Rubab Batool Dr. Muzzamal Hussain Prof. Yasir Nawab Contributing Authors: Reverse Resources’ Nin Castle, Livia Montuori, Laura Stephan.

THE BACKDROP: The textile industry is a cornerstone of Pakistan's economy, contributing significantly to GDP and employment. However, it also generates substantial waste, both pre- and post-consumer, posing social and environmental challenges.

  • The country also has a long history of textile recycling, with Faisalabad serving as the primary hub for processing waste.
  • It is a major importer of second-hand clothing, re-exporting a significant portion to different countries, including African markets. Despite this, the recycling sector remains largely informal, with limited technological advancements and policy support, leading to inefficiencies and lower-quality recycled materials.
  • Pre-consumer waste, such as spinning, weaving, and garment production waste, accounts for approximately 887 kilotons annually, with cotton-based materials dominating the waste stream.
  • Imported textile waste, primarily second-hand clothing, adds another layer to the waste stream, with Pakistan importing 809 kilotons in 2023. The major portion is either re-exported or sold within the domestic market.
  • However, there is also a stream of recycling of imported second-hand clothing that exists.

WHAT THEY SAID:

Pakistan’s textile sector already has a strong foundation for recycling, but there is immense potential to move beyond conventional methods. This report helps us identify key gaps and opportunities to transition towards high-value recycling solutions.

Dr Yasir Nawab
Professor
National Textile University.

As a responsible textile manufacturer, we recognise the urgent need to address textile waste. This comprehensive report with NTU offers a clear understanding of the challenges and, more importantly, the viable solutions for textile recycling in Pakistan. It's a crucial step towards aligning our industry with global sustainability standards and building a more resilient future.

Saqib Sohail
Responsible Business Projects
Artistic Milliners

Pakistan has all the ingredients to become a global hub for recycled textiles – a well-established textile industry, major manufacturing groups and increasing amounts of post-consumer waste entering the country. By improving waste management and supply chain structures, we can unlock vast opportunities for circular solutions.

— Nin Castle
Representative
Reverse Resources

 
 
  • Dated posted: 28 March 2025
  • Last modified: 28 March 2025