s Pakistan celebrates 77 years of independence, it faces its most pressing challenge yet: the consequences of unsustainable practices that threaten its future. Every year, hundreds of trees are cut down for timber; the rivers are polluted with toxic waste and the land is growing inhospitable on account of inappropriate mining practices.

With a population exceeding 250 million, rapid growth and urbanisation place immense pressure on already strained infrastructure. The take-make-dump approach is no longer suitable. To navigate these challenges, Pakistan must adopt a circular economy, integrating sustainable practices into its textile, agriculture, energy and waste management sectors. It should also enhance water governance and climate resilience.

Circular economy is a transformative model focused on reducing waste and maximising resource efficiency through re-use, repair, re-manufacture and recycling. Its goal is to eliminate pollution, regenerate natural systems and transition to renewable energy. For a sustainable future, Pakistan must shift from its current practices to integrate this model into key sectors.

Textile industry is a significant component of Pakistan’s economy. It contributes 8.5 percent to the Gross Domestic Product and employs 45 percent of the labour force. There is an immediate need for eco-friendly manufacturing processes and ensuring worker well-being. Driven primarily by compliance requirements from the US and EU markets, the sector is adapting. For instance, textile mills in Faisalabad are implementing closed-loop water recycling systems and investing in wastewater treatment facilities to minimise water use and chemical discharge.

Manufacturers are also adopting eco-friendly dyes and energy-efficient machinery. Investments in emission control technologies are improving air quality in urban areas like Karachi.

Additionally, collaborations with some NGOs aim to improve labour conditions by promoting freedom of association, collective bargaining and occupational health and safety. Addressing challenges such as low wages, discrimination and inadequate protection from harassment is critical and in process. Accountability and effective policy implementation by both the government and NGOs are necessary to drive sustainable practices across the value chain.

The agricultural sector contributes around 19.3 percent to the GDP and employs approximately 42.3 percent of the labor force, with 47 percent of Pakistan’s land used for agricultural purposes. The country generates significant organic waste from crops and livestock, including sugar cane waste, rice husk and green waste. This agricultural waste can be recycled through various technologies to produce biofuels.

Additionally, manure, rich in nitrogen, can serve as an effective bio-fertiliser. Improving agronomic practices—such as soil health management, efficient water use, judicious chemical application and crop diversification—is essential for sustainable agricultural development.

Energy consumption poses another significant challenge for Pakistan. Renewable energy is a key component of the national strategy—targeting 30 percent renewables by 2030. However, progress has been slow, hindered by regulatory bottlenecks and insufficient incentives for large-scale solar and wind investments. Managing energy demand and reducing reliance on fossil fuels must be prioritised to meet emissions targets.

Pakistan’s climate resilience strategy suffers from an over-reliance on structural measures like dams and embankments. These might prove insufficient for effective disaster prevention. Research indicates that vulnerabilities—such as poverty, lack of education and poor governance—contribute more to disasters than natural hazards. Climate change has intensified issues like droughts and water scarcity, worsened by inefficient irrigation systems that allow significant water waste.

Despite a slow response by the government, many private entities, especially in the export sector, have recognised the importance of sustainability and adopted more circular practices. Numerous textile companies, for instance, are using recycled fibres and fabrics to reduce costs. 

To address water scarcity, a dual approach is required: enhancing water governance and adapting to climate change. Implementing climate-resilient agricultural practices alongside large-scale water conservation efforts can help alleviate pressure on resources.

Infrastructure projects should incorporate climate resilience standards to ensure that they can withstand the impacts of a changing climate. Ultimately, Pakistan’s climate crisis is a developmental challenge that necessitates scaled-up efforts in flood defence, afforestation and agricultural resilience, all aligned with long-term national goals.

In 2016, Pakistan committed to the 2030 Agenda for Sustainable Development by adopting the UN’s Sustainable Development Goals as a national priority. While progress has been made through the incorporation of these goals into national policies, much of this effort remains siloed. Alarmingly, Pakistan has regressed in the Sustainable Development Index, dropping from 129 in 2023 to 137 in 2024.

On the 11th anniversary of the agenda 2030 for Social Transformation and the Summit for the Future, Ziaur Rehman, CEO of Awaz CDS-Pakistan, emphasised that “Pakistan spends less than 6.9 percent of its yearly budget on public sector development. It should spend more than 25 percent of its yearly budget if we are serious about achieving our commitments under the SDGs.” This underscores the critical need to allocate more resources toward climate change initiatives, agricultural reform, waste management and green energy creation.

Despite the slow response by the government, many private entities, especially in the export sector, have recognised the importance of sustainability and adopted more circular practices. Numerous textile companies, for instance, are using recycled fibres and fabrics to reduce costs and marketing these efforts to clients. They are also implementing worker well-being programmes like Better Work and Labour Behind Label to advocate for labour rights.

The recent surge in electricity prices has prompted many large and medium industries to adopt solar power as a cost-effective way to meet their energy needs. More subsidies could help their faster adoption.

Waste management in Pakistan faces significant hurdles. Urban areas generate more than 48 million tonnes of solid waste annually. Only 60 percent of it is collected. The rapid influx of urban migrants exacerbates the situation, stressing existing infrastructure and leading to severe environmental pollution.

The World Bank estimates that inadequate waste management costs the economy approximately $2.5 billion annually in lost productivity. Initiatives like the Lahore Waste Management Company have implemented composting and recycling programmes, diverting significant waste from landfills. However, these efforts still fall short.

Pakistan recycles around 15 percent of its plastic waste, compared to a global average of 30 percent. To improve these figures, community engagement is essential. Leveraging AI-driven tools in waste collection and repurposing could lead to substantial advancements. Progress remains slow due to limited adoption of technology in sustainability efforts. There is a need for the government to incentivise sustainable technologies through subsidies and streamline regulations to encourage private investment in this sector.

For Pakistan to achieve true sustainability, it must interconnect the three core dimensions of development: social, economic and environmental. For example, poverty reduction requires robust policies in employment, social protection, health, nutrition and environmental sustainability. It also necessitates a clean environment, good hygiene, proper nutrition and improved healthcare and education.

Achieving Pakistan’s sustainable development targets requires effective coordination among all stakeholders—including government, the private sector, civil society and academia—to devise and implement comprehensive policies. A collaborative approach is vital for navigating sustainability challenges while fostering economic resilience and ensuring a better quality of life for all citizens.

The writer is a LUMS alumnus with a BSs in finance and experience in the textile sector.