The textile sector is the backbone of Pakistan’s economy and have major contribution to GDP and employment rates. There is need to implement circular economy practices in this sector for more output. In this regard, this study is conducted to identify the barriers which are obstacles for the implementation of circular economy practices in the textile sector of Pakistan and identified the drivers which can implement circular economy practices in this sector. In the next forty years, the demand for primary raw materials will double due to population growth. Recycling and other measures were implemented several years ago to alleviate the climate emergency. There is need to replace the linear economy with a circular economy. The qualitative research design is employed to gather information through interviews by using grounded analysis. Different Drivers are explored in this study who can bring Circular Economy practices in the textile sector and barriers are identified in this study. The study will have implications for Policy Makers, Government officials, and economists.