<p>This paper aims to compare green supply chain management (GSCM) practices between China and Pakistan, focusing on the role of governmental regulation and its effects on the economy and industrialisation. The study also seeks to investigate the differential adoption of GSCM practices, considering country-specific factors such as financial constraints. A comparative analysis assesses the relationship between limited funds and critical performance factors like production levels, profitability, and environmentally friendly technologies. The study also explores financial instruments like green bonds, public–private partnerships, and government subsidies. Chinese manufacturers are more capable of integrating GSCM effectively due to their larger scale advantages and access to capital. In contrast, Pakistani firms are constrained by higher costs and a lack of financial incentives. This study highlights the importance of tailored financial strategies for enhancing GSCM in different economic environments. It suggests that country-specific solutions are necessary to improve sustainability and environmental performance. The paper contributes to understanding how financial support and innovation can be leveraged to enhance GSCM adoption in developing economies. The study implies that tailored financial strategies like green bonds and public private partnerships are important to overcome financial barriers that enable effective GSCM adoption in developing economies like Pakistan. The improvement in GSCM adoption can help countries in reducing environmental impact, create green jobs, and increase public health that fosters sustainable development and social responsibility in the manufacturing sectors of China and Pakistan.</p>