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Government, Multinationals Deadlocked Over Proposed PET Bottle Ban in Islamabad

ISLAMABAD: The government and multinational companies remain at odds over a proposed restriction on recyclable plastic bottles used by the food and beverage industry. The move is reportedly aimed at presenting Islamabad as a plastic-free city ahead of the upcoming Shanghai Cooperation Organisation (SCO) summit.

A meeting this week between Minister of State for Interior Talal Chaudhry and representatives of Nestlé, Coca-Cola, PepsiCo and Metro ended without a breakthrough, according to people familiar with the discussions.

The companies argued that existing regulations do not prohibit polyethylene terephthalate (PET) bottles. They also maintained that the current legal framework already addresses single-use plastics and promotes recycling.

The Pakistan Environmental Protection Agency (Pak-EPA) has reportedly supported the industry’s interpretation. Its officials have said that existing regulations do not impose a blanket ban on PET bottles.

Pak-EPA Questions Legal Basis for Restriction

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

However, industry representatives said the government continued to press companies to explore alternative packaging, particularly glass bottles and paper-based solutions.

The companies reportedly presented international examples, details of existing recycling practices and arguments that commercially viable alternatives were not available at the required scale.

Despite these explanations, the government remained focused on finding alternatives to PET packaging, according to industry representatives.

Industry Warns of Rs10 Billion Revenue Impact

Industry representatives warned that a sudden restriction on PET bottles could reduce federal tax revenues by at least Rs10 billion.

They also expressed concern that action against a legally permitted product could undermine investor confidence and send negative signals to international businesses operating in Pakistan.

The government reportedly wants food and beverages served in plastic-free packaging during the SCO summit. However, industry representatives said establishing a glass bottle manufacturing facility would require substantial investment and at least two years.

The dispute has therefore raised questions about whether the proposed changes can be implemented within the available timeframe.

Business Groups Seek Government Intervention

Several business organisations have separately approached federal authorities over the proposed restriction.

The American Business Forum (ABF), the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Collect and Recycle (CoRe) Alliance have raised concerns about the issue.

In an appeal to the interior minister, the ABF requested the withdrawal of the proposed PET bottle ban and called for effective enforcement of the ICT Single-Use Plastics Regulations, 2023.

According to officials, Talal Chaudhry acknowledged that existing legislation contained relevant provisions. However, he emphasised the importance of preparing Islamabad for the SCO summit.

The minister’s position could not immediately be obtained for comment.

Industry representatives said the government continued to ask multinational companies to present workable alternatives to PET bottles.

Another meeting is expected next week, when the companies will be asked to provide technical details, supporting evidence and expert input to substantiate their positions.

There were also indications that the government might avoid taking adverse action against retail sales until the planned expert meeting, according to industry representatives.

Pakistan Will Not Tolerate Cross-Border Aggression, Says General Aamer Raza

What Pakistan’s Plastics Regulations Say

The dispute centres on the scope of Pakistan’s existing plastics regulations.

An opinion piece published in The Express Tribune argued that a campaign against litter had evolved into a dispute over lawful trade.

The article cited the Single-Use Plastics (Prohibition) Regulations, 2023, introduced by Pak-EPA under the Pakistan Environmental Protection Act, 1997.

According to the opinion piece, the regulations include PET in their definition of plastic but prohibit six specific categories of products: polythene bags, straws, plastic crockery, cutlery, food-service ware and stirrers.

PET beverage bottles are not included in that list, the article argued.

It also stated that, from July 2028, beverage bottles would be required to contain at least 50% recycled plastic. This provision, according to the writer, indicates a policy approach focused on recycling PET rather than prohibiting it.

The dispute now hinges on how the existing regulations are interpreted and whether the government intends to introduce additional restrictions for the summit.

For businesses, the immediate concerns include regulatory clarity, investment costs and the availability of alternative packaging. Meanwhile, the government faces pressure to meet its environmental objectives without disrupting lawful trade or creating uncertainty for investors.

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