Introduction
Sustainability has two definitions “the ability to be maintained at a certain rate or level.” and “avoidance of the depletion of natural resources in order to maintain an ecological balance.” Though a single word, yet engulfs a world of aspects and factors, when it comes to global issues and concerns. In the modern world sustainability has become a very important subject; companies are concentrating on different aspects of sustainability, including but not limited to Asset, Financial, People & Culture, Security, Compliance, Communication, Risk and Environment. Responsible companies are diverting efforts to ensure sustainability, with major focus on environment. Recyclability has become paramount. Many international brands have already incorporated in their 2020 goal, to procure from sustainability compliant vendors. This poses great threat to countries like Pakistan, which needs growth of exports, to cater trade deficit.
Electricity Lifeline for Developing Countries
Pakistan is a developing country and has ever growing appetite for electricity. Despite high electricity prices electricity is not available, even in big cities, for long periods of time. It is estimated that tens of thousands of villages in Pakistan will not have electricity for decades. In order to allow Pakistan a progress at galloping pace and reduce urban migration it is important that modern facilities are extended to smaller towns and villages. Currently, Pakistan’s 79% of electricity comes from most expensive source of Oil and Natural Gas. 11% from hydro, 7% from Coal and 2% nuclear source. Pakistan’s NG resources are already depleting; thus the country is resorting to import LNG. Another drain on forex reserves.
Waste a Threat to Environment
It is estimated that about 48.5 million tons of solid waste per year, is generated in Pakistan. It is increasing at the rate of more than 2 percent per annum. Like other developing countries, Pakistan lacks waste management infrastructure, creating serious environmental problems. Most municipal waste is either burned, dumped or buried on vacant lots, threatening the health and welfare of inhabitants. Thus, a serious threat to sustainability. According to the Government of Pakistan, it is estimated that 87,000 tons of solid waste is generated per day, mostly from major metropolitan areas. Karachi, Pakistan’s largest city, generates more than 13,500 tons of municipal waste every day. Similar challenges are being faced by all major cities on how to manage urban waste. Bureaucratic hurdles, lack of urban planning, inadequate waste management equipment, and low public awareness contribute to the problem. Incinerators being operated by local governments are of old technology and are seriously damaging surrounding vegetation and trees. Consequently, adding to the agony of people, environment and businesses.
Waste to Energy
Waste to Energy (WET) is a tested concept of utilizing solid & municipal waste for contributing to country’s economy and developing bioeconomy. Pakistan can effectively use its waste to reduce certain imports, supplement energy production, improve environmental conditions and safely get rid of daily waste produced.
Though garbage transportation to landfill should not cost more than US$6-7 per ton; however, Sindh government is spending to the tune of US$25 per ton of garbage removal, which is dumped at landfills. Only 40% of the garbage is being transported to landfill costing PKR54 million a day, almost PKR20 billion a year. Undoubtedly garbage heaps continue to increase at the rate of 7000MT per day on streets of a city once known for its sophistication, lights and lifestyle.
Likewise, sewage waste is being dumped in sea and rivers effecting marine life and water quality of rivers. Adding to environmental damage and negative effect on economic activities.
Waste is a Goldmine
It is need of the hour to deliberate on solutions to such gigantic issues. Despite lot of water having passed under the bridge, much can be done to mitigate the situation. Its time, instead of paying for garbage removal, revenue for picking up the garbage should be generated.
It is estimated that 1MT of solid waste can generated 500KWh of electricity. Considering 50% of solid waste generated daily from Karachi, a potential exists to generate 3500MWh of electricity, with zero toxic emissions. Such type of power generation is already being done in countries like Sweden and Singapore, since long. Applying same model to other cities of Pakistan can provide substantial amount of electricity each day. Pakistan has an estimated Municipal waste of 87,000MT per day, means a potential of 33,000MWh.
Sewage waste for Karachi only, is to the tune of 450Mgd liters approximately 1.7 billion liters a day. This waste can be used to produce fertilizer, methane and clean water. Similar models in other cities can help to supplement rivers with clean water or can be used for irrigation.
How to Achieve the Objective
Currently most of the waste in country is being handled by government department. No need to mention their efficiency, corrupt practices and exorbitant expenditures. Therefore, tasking government officials to establish such units would be creating more parasites to government exchequer. Furthermore, government exchequer is already under heavy pressures, thus cannot afford to invest in such ventures. Only solution is to involve private sector, facilitating them to establish such units and run it on commercial basis. Unfortunately, private sector comprises of influential and nobles, who grab such opportunities and indulge in exorbitant profiteering. At the end money is siphoned into few pockets and common man bears the brunt.
Solution to this problem is making a listed corporation. Pakistan’s history is witness to such state-owned corporate having succumbed to political interference, became hostage to employees, suffered red tapism at the hands of bureaucracy and became burden on government exchequer.
There is no problem for which a workable solution cannot be developed; provided there is a will. In order to achieve desired objectives such projects need to be free from bureaucrats, profiteers and politicians. It can be achieved through floating IPOs to public; let people of this country invest in the country and reap the benefit of dividends. Now the question of controlling shares will crop up. It can be resolved through an independent board of governors through PICG enlisted directors. Board of governors control the organization through CEO, having smart objectives. Such models are being run by many companies listed on different stock exchanges of world. This means no single person or family owns majority share, to control the company. Government will only have to fund for a team of two to three people, who can develop a bankable feasibility for the projects and land for said projects, which may be leased to power generation company and cost apportioned to P&L of individual projects. Amount spent to develop such feasibility would be a fraction of what government (Federal & Provincial) are paying for removal of garbage each year.
Well defined rules of business can help in reducing the risk of such corporate being hijacked by opportunists and from becoming a parasite on public resources. Likewise, members of board can be restricted to have any stake in the organization and may also be restricted for being concurrently on multiple board of governors of such organisation. The concept can be evolved, refined and implemented to negate bureaucracy, politicians and profiteers to take advantage of their positions; even the workers.
Conclusion
World has moved ahead, those who did not remain with fast pace of global development have lagged. And those countries are still developing or underdeveloped. Out of the box solutions should be explored to revive economy of the country and pick up momentum to compete in highly competitive global environment. Reliance on local production and jobs generation is the only way to sustain sovereignty.
