Friday, May 2, 2025

How Pakistan’s Startups Are Giving Plastic a Second Life

Pakistan is leading South Asia in mismanaged plastic waste, generating around 20 million tons of solid waste annually, with 5 to 10 percent of that being plastic. Despite having a recycling potential of just 18%, the country manages to recycle a mere 3% of its plastic waste. This stark gap highlights the urgent need for effective waste management strategies and sustainable recycling initiatives to combat the growing plastic crisis.

So in a country where overflowing waste has turned city streets into makeshift landfills, a new wave of startups is stepping up to reimagine a cleaner, more sustainable future for Pakistan. Ventures like Concept Loop, that turns plastic waste into eco-friendly building solutions, are driving construction growth. This innovative approach reshapes the planet’s future through sustainable practices. Then there is Bigger Bricks, and Sufi Tech showing how plastic can be seen not as a problem, but as a valuable opportunity. By partnering with global players like Unilever, these social entrepreneurs are transforming the way we think about consumption, working to build a thriving startup ecosystem centered around plastic circularity and environmental impact.

This isn’t just a feel-good story about young people doing cool things with trash. It’s a story about how the startup ecosystem is becoming the missing middle in a broken plastic value chain: one that begins with the informal economy and ends, hopefully, with innovative solutions and scalable enterprises. In between lies the daunting gap of logistics, infrastructure, and financing. And this is where these startups step in.

A blunt reality check: Pakistan’s waste sector remains severely fragmented, with the bulk of its operations handled by informal actors—including waste pickers, junk dealers, and small-scale aggregators—who remain outside the formal economic net. While municipal authorities are making efforts to manage the growing avalanche of waste, the backbone of collection and segregation continues to rest on these informal networks. Territorial, loosely organised, and often marred by social issues such as child labour, this system—while undeniably efficient—is also legally and ethically inaccessible to large companies seeking responsible sourcing partnerships.

This disconnect creates a critical gap in the industry. Without formalised actors and scalable models for waste collection and segregation, particularly for high-value materials like plastics, metals, and paper, the potential for a truly circular economy remains limited. The sector urgently needs structured, innovative, and inclusive solutions that bridge the informal-formal divide and offer traceable alternatives for repurposing and recycling.

Yet this very system, flawed and fragmented as it is, is what keeps Pakistan afloat. Without the informal waste sector, the country would quite literally drown in garbage. This makes it both a paradox and a possibility. If structured intentionally, this scattered network could become the foundation of a truly sustainable circular economy. But the question remains: who will build that bridge?

Enter Second Life Pakistan, a concept more than a campaign. These startups are proving that the discarded can be reimagined. Take Bigger Bricks, for instance. Using recycled plastic, they manufacture modular construction bricks durable enough to erect a house, yet easy to dismantle. Think Lego, but life-sized. These bricks are already being explored for disaster-prone regions and tourism infrastructure. Then there’s Concept Loop, which has tackled one of the most overlooked issues in recycling: the separation of plastic film from bottles. That simple technical challenge has kept tons of potential recyclables from re-entering the supply chain.

What’s remarkable is how these startups are moving from pilots to platforms. With support from ecosystem giants like Unilever, they’re not only winning grants and accelerator slots but also getting in the room with government and diplomatic stakeholders. That visibility matters. Not just for funding, but for legitimacy. And when a startup becomes a potential vendor to a multinational, that’s when the real circularity begins—money, material, and mission all flowing in a loop.

But here’s the rub: these startups are still the exception, not the rule. One of the greatest barriers is scale. Recycling only makes business sense if materials can be sourced locally. Transporting waste across provinces, where fuel prices and carbon emissions shoot up, defeats the sustainability purpose. That’s why every region in Pakistan must incubate its own Second Life Pakistan startups. Industrial zones like Lahore and Karachi should be equipped not just with factories but with recycling units, sorting facilities, and warehousing hubs to handle post-manufacturing waste. This decentralized approach is critical to both economic and environmental outcomes.

When discussing circularity, whether with plastics or other materials, the solution will not be effective if applied in a fragmented manner. True change can only be achieved by addressing the issue at every level—individual, community, institutional, and systemic. To encourage the growth of startups focused on circularity, there needs to be supportive policy frameworks that incentivize the creation of innovative solutions. Plastic itself is not inherently harmful; it’s embedded in nearly everything we use—by design. The issue lies in the lack of focus on its reuse, recycling, and resilience. Through 2nd Life Pakistan, efforts are being made to build an ecosystem that not only tackles plastic circularity but is also expanding into other industries. While the current focus is on waste as a byproduct of consumption and manufacturing, the long-term vision is for 2nd Life Pakistan to influence the design of products across industries, ensuring reuse and circularity are embedded from the outset.

Another missing link is early-stage funding. Most Pakistani entrepreneurs with circular economy ideas are stuck in the “valley of death”—too mature for idea-stage grants, but too early for bank loans or venture capital. Their traction is promising, but not yet provable. That’s where corporate grants, like those offered in Unilever’s circularity challenge, play a vital role. Even a small infusion of cash can allow a startup to buy machinery, develop a prototype, or scale its operations enough to prove viability. More than the money, these opportunities provide access to mentors, decision-makers, and potential corporate partners.

After the first successful stint, in its second cycle, 2nd Life Pakistan 2.0 is focused on empowering startups that are tackling Pakistan’s growing waste challenges. With an emphasis on circular economy solutions, the program is nurturing innovative ventures that are addressing key waste categories, including plastics, construction materials, textiles, paper, e-waste, agriculture, and food. Startups from both idea and growth stages are being given the resources, mentorship, and networking opportunities they need to scale their impact. This cycle will culminate in a final pitch event, where the top 12 finalists will present their solutions for a chance to win cash prizes and additional support to further their work in creating a sustainable future.So what do we need? A startup ecosystem that grows horizontally across provinces. Corporate players that commit beyond CSR. Governments that formalize informal players. And consumers that refuse to be apathetic.

And let’s not forget the consumer. After all, Unilever is an FMCG company with products in every Pakistani home. It is ultimately the consumer who will decide whether this circular dream becomes a reality. While some urban households are sorting waste into separate bins, the vast majority still treat trash as trash. There’s little understanding that your used shampoo bottle could become a brick, or that a juice carton has value beyond its last sip. Changing that mindset requires education, consistent messaging, and systemic support.

Plastic doesn’t have to end up in landfills. It can be reborn—into bricks, benches, or bottles. But it takes a village. Or in this case, a startup. Maybe a few hundred of them.

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