<p>The present study explores the barriers to the adoption of the circular economy (CE) in the construction industry of Pakistan, where resource depletion, construction waste, and weak sustainability practices remain major concerns. Using a multi-method quantitative approach, the study first identified 45 CE adoption factors from the literature and then evaluated them through expert-based surveys. Factors are prioritized by evaluating their mean scores, while Fuzzy DEMATEL and MICMAC analyses were applied to examine causal relationships, driving power, and dependence among the most significant factors. The findings indicate that research and innovation, standardization and modular construction practices, material recovery and recycling initiatives, professional training and education, BIM implementation, innovation-support mechanisms, circular procurement practices, industrial collaboration and resource-sharing networks, CE-focused academic programs, and design-for-disassembly approaches constitute the primary driving forces behind circular economy (CE) adoption. MICMAC analysis reveals that research and development, professional training, BIM application, and CE-oriented university programs serve as the primary drivers, exhibiting high influence and minimal dependence. The findings indicate that CE adoption in Pakistan’s construction sector requires coordinated technological, educational, regulatory, and market-based interventions. The study recommends strengthening industry-academia collaboration, integrating CE principles into construction education, promoting BIM-enabled circular design, supporting innovation incentives, and developing standards for reusable and recyclable construction materials. Consequently, these results offer an empirical framework for policymakers, industry practitioners, and researchers aiming to progress circular and sustainable construction methodologies within emerging economies.</p>