Fiscal, policy incentives may be introduced in Federal Budget

ISLAMABAD: The government is likely to introduce fiscal and policy incentives in the Federal Budget (2026-27) to strengthen waste collection, recycling infrastructure and circular economy initiatives from next fiscal year. Sources told Business Recorder that the proposals are under consideration of the government for the upcoming Finance Bill 2026. In this regard, Pakistan’s first multi-stakeholder packaging alliance, CoRe (Collect and Recycle), has urged the budget makers to finalise the proposals. READ ALSO: Budget 2025–26: Between recovery and reality In a presentation to the policy makers and top government officials, Sheikh Waqar Ahmad, CEO and Founding Director of the CoRe Alliance, emphasized the importance of policy support in strengthening Pakistan’s recycling ecosystem. The federal budget presents a critical opportunity to advance green financing, incentivize investment in recycling infrastructure, and support the formalization of waste collection systems. These measures can contribute significantly to Pakistan’s climate reform agenda and complement broader policy reforms that may be supported through the Resilience and Sustainability Facility under the Staff-Level Agreement with the International Monetary Fund, he said. The CoRe Alliance has recommended State Bank of Pakistan-backed green financing, tax incentives for recycling and packaging recovery projects, fiscal incentives for the use of recycled content, exemptions on taxes and duties for recycling equipment and services, reduced duties on Reverse Vending Machines, and support for plastic-to-fuel infrastructure. Babar Aziz Bhatti, Chairperson of CoRe Alliance’s Extended Producer Responsibility (EPR) Committee & CEO, Green Earth Recycling said that Pakistan’s recycling sector has significant economic and environmental potential. With the right policy support and investment incentives, the country can improve recycling rates, reduce packaging waste leakage, and advance a more sustainable and resource-efficient economy. Copyright Business Recorder, 2026

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