PhD Thesis Presentation - Evaluation of the Transition towards a Circular Textile Supply Chain in Pakistan: An Empirical Investigation of a Multi-level Perspective

Textile manufacturing is a resource-intensive sector, facing significant challenges in achieving a sustainability transformation away from fast fashion. In response, a strategic shift to the Circular Economy (CE) is essential, yet empirical evidence on micro-level CE adoption in emerging economies like Pakistan remains scarce. Addressing this gap, this study, based on case studies and expert interviews, explores the extent to which Pakistan’s textile manufacturing firms are transitioning from linear to Circular Business Models (CBMs).

Drawing on extensive fieldwork, this thesis investigates: (1) the current progress of circular practices among the textile manufacturing firms; (2) the transitional factors associated with the implementation of CE in the textile supply chain; and (3) the role of stakeholder collaborations in enabling circular business innovations and the epistemic injustices that hinder their upscaling.

Using a mixed-methods approach, I employed a multidimensional framework, extending the Multi-level Perspective, to map circular practices across supply chain stages and to categorize firms into clusters and cross-cases based on their circularity performance. Findings reveal a strong emphasis on internal operations and end-of-life solutions, characterized by lower-value strategies, including recycling and recovery. Next, I explored each firm’s internal and external transitional factors that have either driven or impeded their progress. Consequently, the outcome shows uncoordinated patterns of circular practices, driven primarily by customer demand, transnational governance, and competitive pressures.

Lastly, I identified key Circular Business Innovations (CBIs) and the significant role of stakeholders in enabling progress toward transition. Among them, the most dominant CBIs were product innovations, followed by process, position, and paradigm innovations, due to the export-oriented requirement to meet international standards, certifications, and eco-labels demanded by customers. The circular business ecosystem, hence, urges the need for co-creation among the stakeholders while reducing epistemic injustice. However, the sector currently lacks holistic CE implementation across the fragmented supply chain, hindered by limited knowledge diffusion and the absence of a national CE regulatory roadmap, which weakens stakeholder networks.

To conclude, the thesis provides valuable insights and policy recommendations that will enhance the effectiveness and growth of CE. It implies formalizing green procurement and reverse logistics, rethinking inter-firm collaborations, and implementing targeted policy interventions as crucial to co-creating an enabling ecosystem via systemic reforms that support symbiotic circularity, foster innovation, epistemic governance, and resilience across the supply chain.

Keywords: Circular Economy; Pakistan; textile manufacturing firms; textile supply chain; Multi-level Perspective; Circular Business Models; Circular Business Innovations.