Feature 
 

Circular Economy

Challenges and Opportunities

The informal and small-scale waste collection businesses play a crucial role in the waste management value chain, and their contributions should be recognized and leveraged to achieve sustainable waste management goals.

By Shiza Aslam & Suneela Ahmed | July 2023


In Karachi, Informal and Small Scale (ISS) waste collectors and recyclers play a significant role in waste management. They offer services in areas where official waste collection services are almost unavailable and provide services to nearly half of the Karachi’s population. ISS is also involved in waste recycling as they collect segregated waste and sort it, adding value along the waste chain and converting it into reusable products. This group provides employment to a large number of urban poor. Despite this, the sector is not fully recognized or integrated into the official waste management systems, and there are health and safety risks and potential interference with the official waste system.

The circular economy prioritizes sustainable resource usage and waste minimization by promoting continuous material use through improved collection rates, recycling efficiency, and repurposing to create new products, reducing the demand for new resources and minimizing waste - much of which is catered by ISS in Pakistan.

ISS provides new opportunities for people living in cities, particularly the urban poor with livelihood opportunities while sustaining the recovery and recycling of materials in the urban landscape. Altogether the embedded entrepreneurial culture in ISS activities and modes of dealing are making ground in dealing with waste management issues in underdeveloped areas (some cases even in middle-high income areas) of the city, and playing a pivotal role in achieving efficient waste collection and recycling operations. The material recovery and value addition brought in by ISS serves as critical climate mitigation action by diverting waste away from landfill, and the environment and substituting primary raw materials which otherwise contribute significant greenhouse gas emissions and subsequent global warming.

Over the last decade, the dynamics of small-scale and informal waste collection businesses have undergone a significant change. The active barter system, which previously focused on the collection of textile clothes, is now becoming marginal. Wherein, the door-to-door waste collection service providers, now dominantly Afghans, have changed their operational modes, with the traditional method of using carts and transportation being replaced by more affordable options like motorcycles, load rickshaws and Chingchis. This shift in vehicle transformation has brought about numerous benefits for waste collection businesses. With increased mobility and flexibility, these businesses have been able to provide door-to-door waste collection services, on-call services, and event-based services. The expanded business activities have resulted in higher coverage and increased revenue.

Afghan waste collectors have been offering waste collection services with a unique approach. They not only collect the waste but also separate recyclables on-site or ‘on the go.’ This approach allows them to offer lower fees to households for waste collection, especially when the waste is segregated prior to collection. The average service charges are already low, amounting to around 200 PKR, and can be reduced to 150 PKR with segregated waste. Subsequently, they are close to the source (point of generation, i.e., residents in this case), and thus are able to secure and claim quality waste i.e., relatively low contamination levels.



Good quality of recycled material, referred to as recyclates, is very important for further recycling of these components. This approach reduces the burden on municipal authorities and formal waste management systems and creates a source of income for the informal waste sector. However, there are challenges that these waste collectors face. For instance, Union Councils negotiating with ISS, may restrict access and often pay below the minimum wage, as they account for material recovery revenue as an embedded cost in the contract. This can lead to ISS being underpaid for their services, which can have a negative impact on their quality of life. Overall, the waste management industry needs to take steps to address these disparities and ensure fair compensation for all workers.

Hard work and the strong work ethics of Afghan waste pickers are well-known in the waste management industry. However, with the evolving urban landscape and rapid development of Karachi, traditional waste pickers are facing new challenges that demand a higher level of physical fitness and agility, preferable to the Afghanis. For instance, the difficult terrain of low-income settlements and the dense multi-story living structures in middle and lower-middle-income areas make it arduous for waste pickers to access every household. This has unfortunately led to the engagement of Afghan children or underage groups in the waste management system.

Local municipalities and Sindh Solid Waste Management Board (SSWMB) in formal and informal capacities also employ Afghan waste pickers (including child waste pickers) to assist with waste collection in Karachi. There is a stark difference in the salaries paid to sanitary workers, which is 950 PKR per day, compared to daily wagers (Afghan waste pickers) who earn only 500 PKR daily. This creates a significant disparity in the earnings of workers in the same industry. Furthermore, contracts for sanitary workers are usually politically driven, with union-level contracts mostly being given based on political affiliations. Unfortunately, there are often religious or biased associations with waste pickers, which can affect their livelihoods.

ISS service providers also face challenges pertinent to upscaling their businesses. One example is Gul Bahao, a prominent waste enterprise in Pakistan, promoting the use of low-cost and environment-friendly technologies to tackle issues related to waste management, water conservation, and sustainable housing in Pakistan that face limitations due to a lack of municipality assistance. The organisation operates in a system where waste management is the responsibility of the local government, but often the government lacks the resources or political will to implement effective waste management practices. This leads to a lack of coordination between Gul Bahao and the local government, limiting the organization’s ability to expand its services.

Another prominent example is Dr. Akhtar Hameed Khan Memorial Trust (AHKMT), an NGO working on sanitation and solid waste management in areas with non-existing primary waste collection systems due to lack of resources. The AHKMT faces challenges in promoting sustainable development in under-development areas in Pakistan due to limited financial resources, lack of infrastructure, and government regulations. Additionally, communities they work with often lack access to basic necessities, hindering the organisation’s ability to provide services effectively.

From a research and advocacy perspective, there are several aspects that warrant investigation and exploration for the ISS service providers. These include their livelihoods, legal status, and citizen perception and interaction in their service delivery and means of business. Furthermore, it is crucial to design positive incentives and identify drivers that can leverage the ISS’s key entrepreneurial and social network assets. One such approach could be for the government to provide incentives and payments based on recycling and integrated waste management interests of the municipality.

Additionally, there is a pressing need for detailed studies on the social entrepreneurial aspects of ISS as well as impact-oriented projects and activities to capacity building, counsel, and empower counsellors at the Union level to support ISS. The gender aspects of waste management and ISS also require further research. Finally, there is a critical need for waste data and fact sheets specific to each waste stream, such as plastic, metal, paper, and others with the role of ISS in focus.

In conclusion, waste management is a complex and multifaceted issue that requires a comprehensive approach involving various stakeholders, including the government, municipal bodies, the private sector and civil society. The informal and small-scale waste collection businesses play a crucial role in the waste management value chain, and their contributions should be recognized and leveraged to achieve sustainable waste management goals. They cover a significant part of the city and may be accepted and upgraded.

Therefore, it is imperative to promote an enabling environment that facilitates the integration of informal waste collectors into formal waste management systems and incentivizes their participation. By doing so, we can create a win-win situation for all stakeholders, promote a circular economy and safeguard the environment for future generations.

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