Solid Waste Management & Recycling: Operational and Financial Model

The increase in usage of packaging in consumer products along with the ever-increasing population has led to an exponential rise in land pollution. Meanwhile developed countries are making huge leaps in reducing and recycling the waste, developing countries like Pakistan are remotely prepared to fix the problem. Piles of garbage in the middle of streets and shopping bags clogging waterways are a common sight due to the lack of a proper solid waste management system. This lack of proper solid waste disposal leads to flooding in areas next to waterways, groundwater contamination and poses health risks to communities. These issues further lead to loss of economy, human capital and damage to the infrastructure. In a large number of countries, solid waste management has been either done through public entities or it is outsourced to private firms. In either case, the consumer of services pays a meagre amount for disposal of their solid waste. The collection of solid waste serves as a good revenue source for any entity involved in collection since most of the items in solid waste are sold back to manufacturers for recycling purposes. Moreover, this strategy serves as a valuable tool in disposal of hazardous waste thus keeping the environment clean.

This project report evaluates the solid waste management services from a business perspective. To develop the operational and financial model, the region of Gulshan-e-Iqbal in Karachi was considered for the base case. According to the survey conducted by UN habitat, the average household in the area generates 1.54 kg of solid waste which yields approximately 280 tons collectively. Most of this waste either can be recycled or can be utilized for energy or biogas generation. This provides an ample opportunity for investors to consider solid waste recycling as a profitable venture.