Seasonal SMOG across the Indo-Pak border has become one of South Asia’s most critical environmental and public health challenges. More than 50 million tons of rice and wheat residues are burned openly, which releases millions of tons of greenhouse gases, particulate matter (PM₂.₅ and PM₁₀), and notable amounts of black carbon. Severe respiratory illnesses and transboundary haze episodes that extend from Punjab to Delhi and Lahore are driven by these emissions, which also degrade regional air quality and visibility. Farmers continue to burn residues despite prohibitions and awareness campaigns because no accessible or reasonably priced management options are available. To investigate shared environmental responsibility in the management of agricultural residues, this study combines field data and policy analyses. It examines technological solutions such as biomass briquetting, bio-composting, and community-level residue collection that can lead to circular, low-emission rural economies. Briquetting alone can convert 25–30% of annual crop waste into renewable fuel, reducing CO and NOx emissions by up to 80% and providing additional income to rural households compared with open burning. The findings demonstrate that, to address SMOG as a shared resource-use issue rather than merely an agricultural one, integrated policies involving farmers, local governments, industries, and regional institutions are required. By converting residue burning from a source of pollution into a circular bioeconomy opportunity through incentive-based policies, coordinated technology adoption, and regional air quality frameworks, the Indo-Pak border region can benefit from cleaner air and sustainable livelihoods.