Marine plastic pollution is emerging as a critical global issue, and the river Indus flowing through Pakistan is a significant contributor. About 8–10 million tons of plastic waste make its way to the ocean each year, negatively impacting marine life through ingestion and entanglement. This study is the situation analysis of plastic waste management in Pakistan from a policy perspective. While conducting the situational analysis, globally used, policy instruments are overviewed. The policy instruments used in Pakistan are further discussed in detail based on the recent data and information collected from literature, government reports and stakeholder interviews. A policy inventory is developed, consisting of relevant policies in Pakistan that address plastic or municipal solid waste and its management. Based on a thorough analysis of the Pakistan government’s efforts, actions, policies, their implementation and information collected through semi-structured interviews, circular economy recommendations are provided. The circular economy recommendations are developed, keeping Pakistan’s current economic state in mind. Given Pakistan’s vulnerability to climate change and its energy shortfall, plastic pollution poses an additional environmental challenge for the country. The amazing recycling rate of PET in Pakistan is evidence that it is certainly possible to create a zero-waste model. Pakistan can solve multiple problems by dealing with plastic pollution, such as energy generation from waste. The analysis concludes that adopting a circular economy model presents an opportunity for Pakistan to address plastic pollution while mitigating its energy and environmental challenges.