The Potential of Circular Economy in Revitalizing Pakistan’s Textile Sector

CIRCULAR & LINEAR ECONOMY
The linear economy follows a “take-make-dispose” model, where resources are extracted, used to make products, and discarded as waste, leading to high resource consumption and environmental harm. In contrast, the circular economy focuses on “reduce, reuse, recycle”, aiming to keep products and materials in circulation, minimize waste, and regenerate natural systems.
In the linear model, waste is a by-product, whereas the circular model designs out waste by promoting durability, recycling, and renewable energy use. The circular approach is more sustainable, generating long-term economic growth, reducing environmental impact, and creating new job opportunities through resource efficiency.
CIRCULAR ECONOMY & T PAKISTAN’S TEXTILE
Pakistan’s textile industry is crucial to its economy, contributing nearly 60% of total exports and employing around 40% of the industrial workforce. The sector accounts for 8.5% of the country’s GDP and plays a major role in foreign exchange earnings. However, it faces sustainability challenges like resource-intensive production, excessive waste, and pollution.
Key Circular Economy Opportunities with Economic Benefits:
Sustainable Cotton Farming:
○ Pakistan is the 5th largest producer of cotton globally, and moving towards organic and regenerative farming can reduce costs associated with chemical inputs and water usage, improving long-term productivity and sustainability.
Textile Waste Recycling:
○ Pakistan generates thousands of tons of post-industrial waste annually. Establishing large-scale textile recycling facilities could create new business opportunities, reduce imports of virgin materials, and meet global demand for recycled textiles, which is growing by 8% annually.
Zero-Waste Design and Eco-Friendly Materials:
○ By investing in zero-waste manufacturing techniques and using recycled or biodegradable materials, companies can save costs in raw material procurement. For example, using recycled polyester can cut costs by up to 30% compared to virgin polyester production.
Energy and Water Efficiency:
○ Implementing waterless dyeing or recycling wastewater could reduce water consumption by up to 50%, lowering operational costs. Similarly, adopting renewable energy sources like solar power could mitigate Pakistan’s chronic energy shortages and lower electricity expenses in factories.
Secondhand Markets and Repair Services:
○ Pakistan imports and processes large quantities of secondhand clothes, especially from Europe and North America. Expanding domestic markets for resale and refurbishment could create additional revenue streams and jobs in repair and upcycling industries.
Economic Benefits of Circular Practices:
● Cost Savings: Circular practices like recycling and energy efficiency can reduce production costs by up to 20%, boosting profit margins.
● New Markets: The global demand for sustainable fashion is projected to grow, opening new export opportunities for Pakistani textiles. Circular fashion could add $10-15 billion to the global economy by 2030, which Pakistan can tap into.
● Job Creation: Transitioning to a circular economy in textiles could create new jobs in recycling, repair, and material innovation sectors, potentially increasing employment by 10-15% in related fields.
Circular Economy Examples in Pakistan’s Textile Sector:
Soorty Enterprises: Implements recycling technologies and water-efficient dyeing to produce sustainable denim, reducing waste and water use.
Artistic Milliners: Focuses on water conservation, wastewater recycling, and renewable energy to minimize environmental impact.
Reon Energy Solutions: Provides solar power solutions for textile factories like Gul Ahmed, reducing carbon emissions and energy costs.
Lunda Bazaar: Pakistan’s thriving second hand clothing market, extends the life cycle of garments and reduces textile waste.
H&M Garment Collection Program: Allows consumers in Pakistan to recycle old clothes, promoting circular fashion and reducing textile waste.
Interloop Limited: Uses recycled cotton fibers in their hosiery products, cutting down on the need for virgin cotton.
Patagonia: Sources organic and fair trade cotton from Pakistan, supporting sustainable farming practices.
Green Garment Factories Program: Helps textile manufacturers adopt energy-efficient and waste-minimization practices to boost sustainability.