Govt, MNCs in deadlock over PET bottle ban

Talks between the government and multinational food and beverage companies ended without agreement this week over a sudden restriction on PET bottles, according to people familiar with the discussions. Minister of State for Interior Talal Chaudhry met representatives of Nestlé, Coca-Cola, PepsiCo and Metro, and the department under him launched the move. The authorities want Islamabad to be seen as plastic-free for the SCO summit, and the companies argue no law bans recyclable plastic.

The Pak-EPA director has publicly stated that current rules do not prohibit PET bottles, and the agency's official Dr Zaigham Abbas reportedly said the clarification has been passed to the ICT administration. Officials nevertheless said the minister acknowledged that existing law contains relevant provisions, yet stressed that the country's hosting of the SCO summit is roughly 10 months away. Industry groups say the move could shave at least Rs10 billion off federal tax collection and send a negative message to overseas investors about the state breaking environmental rules.

The government still favours glass or paper packaging, but industry representatives said a glass bottle plant would need heavy investment and at least two years to build. Another meeting is set for next week, and there are indications that retail action may be held back until an expert session. The ABF, OICCI and CoRe Alliance have also raised objections, with no breakthrough so far.