3.1. Regulatory and policy factors

Table 3 highlights the regulatory barriers and enablers for PVC circularity in Pakistan. Our analysis identifies several regulatory barriers and enablers impacting PVC circularity in Pakistan. Our analysis shows that manufacturers believe high-income consumers are reluctant to accept products containing recyclate, often perceiving them as intended for lower-income groups and as low quality. This perception is compounded by skepticism regarding the quality of r-PVC products, leading many producers to withhold compositional information from customers. Some interviewees noted that a small niche of sustainability-conscious consumers demanding circular products exists; however, this segment remains limited and is not their target customer market. Our findings suggest a missed opportunity for the Pakistani PVC industry, as high-income consumers currently show low acceptance of products containing recyclate. In contrast, literature from other regions indicates that secondary materials are increasingly regarded as premium, often commanding higher prices than primary materials (Grafström, 2025). This trend is reinforced by robust environmental labelling, certification schemes and green procurement policies that actively support circular business practices (Grafström, 2025; Silva et al., 2016), highlighting a potential pathway for market development in Pakistan. Our interviews further reveal that in Pakistan, contaminants such as legacy additives are not considered a significant concern due to weak regulatory oversight. Consequently, PVC waste is readily accepted by private construction contractors and aggregators. This is consistent with accounts of global trade in hazardous plastic and waste (Hui et al., 2025; Liang et al., 2021; Zhu et al., 2023). Manufacturers also highlight that limited awareness and education among both the public and policymakers hinder the industry’s ability to disclose circularity information and promote r-PVC products.

Our analysis shows that the r-PVC scrap ecosystem in Pakistan comprises two distinct supply chains: imported scrap and domestic scrap. These chains face differing perceptions and regulatory treatment from stakeholders, particularly policymakers. We found that while there are effectively no regulations supporting domestic plastic recycling, imports of plastic scrap face some of the country’s strictest policies (Table 3). Our interviews with value chain actors revealed that import duties on plastics and PVC products are approximately 20%, consistent with earlier studies (Thonthia, 2017), validating the accuracy of stakeholder accounts. We noted that PVC resin imports are subject to additional anti-dumping duties ranging from 3.44% to 20.47%, depending on origin and market conditions. The overall tariff on imported plastics and PVC is 17%, covering a wide range of products. Our findings align with the literature, which highlights regulatory bias toward controlling imports rather than supporting domestic recycling (Thonthia, 2017).

3.2. Economic factors

Our analysis indicates that economic factors significantly influence PVC recycling practices in Pakistan, particularly concerning the cost of secondary materials and recycling processes. These costs are subsequently passed down the value chain, potentially increasing manufacturing expenses and the final product price. Table 4 illustrates key characteristics that highlight how economic feasibility affects recycling uptake in the PVC sector.

Our interviews with value chain actors revealed that collectors, including waste pickers, junk dealers, and aggregators, prioritise PVC scrap due to its relatively high selling price. For instance, in January 2023, mixed reclaimed recyclables were sold for 40 Rs/kg, whereas PVC waste fetched 100 Rs/kg. Collectors predominantly trade PVC items such as pipes, shoe soles, containers, casings, automobile parts, utensils and advertising boards. Conversely, PVC packaging and single-use items are rarely reclaimed because they lack market value and collection incentives. These findings align with existing literature highlighting the economic challenges of plastic recycling in Pakistan. Batool et al. (2008) reported that only 21.2% of recyclable waste in Lahore is recycled, generating approximately Rs. 271 million (US$ 4.5 million) annually (Aslam et al., 2022). This underscores the need for cost-effective recycling technologies and improved collection systems to enhance recycling rates. Additionally, Iqbal et al. (2023) and Aslam et al. (2022) emphasised the importance of developing innovative recycling business models tailored to local conditions to strengthen Pakistan’s waste sector and promote circular economy practices.

A variety of perspectives were expressed to indicate which factors create market signals and propositions for collectors to reclaim PVC product waste or items, including labour costs associated with collection and sorting, rising fuel prices, inflation and the primary PVC price affecting plastic waste prices and demand. The literature reports similar concerns that recyclers and manufacturers often face procurement challenges related to the availability and quality of r-PVC feedstock globally (Milios et al., 2018; Schuyler et al., 2022). Addressing these market dynamics requires appropriate responses, such as subsidies, incentives and green procurement policies. While technological solutions play a critical role in advancing the transition to a circular economy, it is equally important to integrate socioeconomic aspects. This was highlighted by Ueda et al. (2003), who emphasised that the decision-making process and actors involved in the collection and processing of used products significantly impact the costs and benefits of recycling for individuals and society as a whole. Similar findings were reported by Aslam (2020), who assessed the challenges faced by a local multi-layer packaging recycler (Green Earth Recycler) in scaling up their operations over the years. These insights underscore the need for a comprehensive approach that considers both technological advancements and socioeconomic factors to drive effective and sustainable recycling practices.

Interestingly, for reprocessors and manufacturers, the fluctuating price index between primary and r-PVC is the most critical barrier. Two discrete reasons emerged from this. First, the main motivation for reprocessors and manufacturers to utilise r-PVC is to cater to customer or population groups with lower purchasing power and to gain a price advantage in the market. Second, the potential cost savings in using r-PVC, which includes the advantages of using pre-existing additives within its composition, though this is more relevant to flexible PVC product manufacturers. For instance, a shoe manufacturer reported that primary PVC shoes cost twice as much to produce compared to shoes made from waste materials. For instance, if primary PVC shoes are priced at 300 rupees, shoes made from waste materials would be around 150 rupees.

Our analysis reveals a persistent sense of apprehension among reprocessors and manufacturers regarding the use of r-PVC. This hesitation is primarily linked to high energy costs, volatile primary PVC prices and increased machinery wear due to additional feedstock preparation steps such as cutting and crushing. We found that electricity fluctuations impose high costs during continuous production, as power outages lead to batch waste and disrupt production flows. To avoid losses, some actors pre-emptively halt machinery before expected outages; however, the absence of reliable load-shedding schedules makes this difficult. Across all actor categories, our findings indicate that price instability in primary PVC undermines the competitiveness of r-PVC. Manufacturers reported frequent instances in which the market price of primary PVC falls below that of recycled PVC, creating a business dilemma. The added processing costs and perceived risks regarding product quality further discourage the use of r-PVC. These findings align with Van der Vegt et al. (2022), who highlight that price volatility heightens investment risk and undermines the competitiveness of recycled materials when the cost gap with virgin plastics becomes unfavourable.

Our analysis of interviews showed a clear preference among value chain actors for imported r-PVC over domestic alternatives. Our interviews reveal that this preference stems from the low quality of domestically recycled PVC and the absence of formal product standards in Pakistan, both of which contribute to substandard products and high uncertainty about material composition. We found that imported and domestic r-PVC follow distinct supply chains, each with its own operational complexities. In the domestic market, collectors, matchmakers and aggregators act as key intermediaries in sourcing and distributing PVC scrap. However, this market operates largely within the informal sector and faces persistent challenges, including unreliable supply volumes and cash-based, advance payment transactions typical of informal economies. Our findings further show that collectors and aggregators maintain symbiotic relationships to manage transactional risks. For instance, if a collector fails to meet an agreed order and the buyer’s vehicle has already been dispatched, the collector or aggregator must bear the transportation cost. These results align with broader literature highlighting how the lack of quality standards and formal market mechanisms in low- and middle-income countries weakens confidence in domestically recycled materials and drives reliance on imports (e.g., Aslam, 2020; Iacovidou et al., 2017; Velis et al., 2022).

3.3. Technical factors

Following the analysis of economic factors, we examined the technical aspects influencing r-PVC uptake, including composition, product quality and performance (Table 5). Our findings showed that the composition and quality of locally sourced PVC waste remain major concerns for all value chain actors. Manufacturers and converters repeatedly emphasised that uncertainty in product composition, particularly the ratio of fillers, additives and polymer, acts as a critical barrier to the wider use of recycled PVC. This variability complicates formulation control and compounding, often resulting in inconsistent product quality and mechanical performance. Manufacturers reported that quality issues associated with r-PVC also contribute to increased machinery wear compared to primary PVC. When higher proportions of recyclate are used, mechanical components such as bearings experience greater strain, clogging and accelerated wear. For matchmakers and aggregators, the unknown composition of r-PVC presents significant business risks, as inconsistent feedstock can disrupt transactions and erode trust along the value chain. Several interviewees recounted instances where r-PVC from specific product waste caused entire compounding batches to fail, resulting in material losses for manufacturers and converters. These findings align with international studies (e.g., Grafström, 2025; Hsu et al., 2022) that identify compositional uncertainty and quality inconsistencies as major technical barriers to scaling r-PVC use globally.

3.4. Systematic factors

Table 6 highlights the barriers and opportunities arising from key systematic factors in the PVC value chain. While PVC has the potential for recycling, its mechanical recycling process poses various challenges, particularly due to the lack of critical infrastructure in Pakistan. Our findings show that systematic challenges are particularly pronounced for handlers of flexible and single-use PVC waste, who grapple with issues such as comingled collection, contamination, and the high volume-to-weight ratio of these materials. Interviewees noted that additional effort and resources are required to recycle such materials, which often yield low returns. This leads to mismanagement of PVC waste and exacerbates concerns about plastic pollution. We, therefore, are convinced that it is important for the Pakistan national and sub-national governance bodies to invest in critical infrastructure that supports recycling and fosters circularity, as an interviewee stressed, “Plastics or no plastics, there is no excuse for not having a well-functioning waste management system”. Stakeholders and literature (Ali et al., 2021; Aslam, 2020; Iqbal et al., 2023; Milios et al., 2018) both identify these factors hindering the effective separation of different types of plastics, leading to contaminated plastic waste streams, impeding the recycling process and limiting the overall recycling rates.

Another significant challenge is the absence of well-equipped laboratories and testing facilities, which hampers the assessment of recycled PVC material quality and composition. This shortfall hinders the research and development efforts of entrepreneurs and small- and medium-sized enterprises, resulting in delays and sustainability issues. Aggregators share similar concerns, as the lack of compositional and product data complicates finding suitable markets or matching actors within the value chain. This absence of accurate evaluation restricts the potential applications of recycled PVC.

Regarding product quality, several barriers arise from the lack of standards and regulations governing PVC recycling in Pakistan. Manufacturers express hesitation to utilise local post-consumer recycled PVC due to unknown formulations and potential impacts on the final product. They emphasise that the choice to use recycled PVC depends on the application, with certain applications, e.g., pressure pipes, actively avoiding it. The quality and composition aspects are of concern for all value chain actors. For instance, collectors mentioned that they avoid gas pipes (soft PVC) because their material characteristics deteriorate over time and their further applications are limited, thereby reducing their market value. Similarly, aggregators and shoe manufacturers mentioned that shoe soles (locally known as ‘China shoes’) are avoided by the industry for their polymer co-mixing and composition profile (EVA, ‘Ethylene Vinyl Acetate’, is used mixed with r-PVC or others), making it hard to recycle and creating low incentives for collectors. The importance of standardisation for increased recycling was emphasised in the literature a decade ago (Alonso et al., 1999; Fuller et al., 1996) and has recently been highlighted (Milios et al., 2018; Schuyler et al., 2022; Van der Vegt et al., 2022). However, in the case of Pakistan, there is a lack of preliminary product specification standardisation and critical barriers to recycling and circularity, as revealed by this empirical research.

Additionally, the use of hazardous additives in local PVC products, despite international bans, creates quality and safety concerns. Many additives, including cadmium, lead and Dioctyl phthalate (DOP), have been phased out in most countries worldwide due to their hazardous nature (Abtahi et al., 2019; Hahladakis et al., 2018; UNEP, 2020). However, plasticiser additives (particularly DOP) are commonly used in the PVC industry in Pakistan, posing risks to human health and the environment. Interviewees stressed that the use of such additives is not limited to plastic products but is also used in paper and cardboard products readily—communicating these use profiles adequately is critical to not corner the plastic/recycling communities and foster a just ecosystem. Market actors often prefer imported scrap materials due to well-defined quality standards. However, some highlight the need to assess the risks associated with legacy additives or banned materials in PVC scrap before recommending import strategies. Nonetheless, developing any recommendation on the import of PVC or plastic scrap in Pakistan requires a detailed techno-economic assessment. Inventories are finding databases to ensure environmentally sound management (treatment, recycling, or disposal) of waste and serve as an important tool to identify, quantify and characterise wastes (UNEP, 2023a,b). A national-level inventory of products and wastes needs to be developed in Pakistan. It is critical to identify products and sub-sectors that use specific chemicals and materials that may require special treatment.

The absence of an enabling environment and established product and recyclate standards in Pakistan has generated inefficiencies within the PVC value chain and hindered the potential for circularity. Manufacturers noted that the absence of local or national standards led them to follow British standards for pipe production. However, due to the lack of regulations and limited consumer purchasing power, substandard pipe production persists. A PVC scrap importer and pipe producer highlighted that, while British standards permit pipes to contain 3–5% CaCO₃, the lack of proper regulations results in entities exceeding these limits significantly, leading to PVC being added to CaCO₃ in disproportionate ratios. This issue is further compounded by lower PVC content in pipes, which causes brittleness and reduces their lifespan, ultimately limiting their potential for upcycling. These challenges echo the findings of Khan et al. (2024), underlining the necessity for robust product standards. Manufacturers and reprocessors rely on discretion and experience when using r-PVC, adjusting formulas based on factors like additive concentration and quality criteria. Smaller enterprises rely on visual inspection and experience, with limited lab testing focused on mechanical properties and feedback from shopkeepers. Notably, larger industries are better equipped for comprehensive testing.