Previous studies have investigated the critical factors influencing waste separation intention (WSI). However, it is essential to examine how individuals, particularly in ethnically diverse countries with WSI – and among them, those who have experienced adverse health effects from solid waste, referred to here as ‘ready victims’ (RVs) – prioritise capacity-building and inducement policy tools in resource-constrained rural settings of developing countries. This cross-sectional study collected data from 1,345 Punjabis and 1,214 Pashtuns, the two major diverse ethnicities in Pakistan. Controlling for socio-demographics, the binary logistic regression results indicate that Punjabis with WSI were more inclined to favour Internet of things-connected separate waste bins, the establishment of recycling plants, composting centres, civic education and awareness, economic incentives, and public praise. They were less inclined towards door-to-door waste collection, financial penalties, and waste charges than their counterparts who had no intention of waste separation. Pashtuns with WSI showed a stronger preference for recycling plants, composting centres, waste-to-energy (WtE) plants, civic education and awareness, economic incentives, and public praise compared to their counterparts who had no intention for waste separation. In comparison to ‘ready non-victims’ (RNVs) within the Punjabi ethnic group, RVs exhibited a greater preference for door-to-door waste collection, WtE plants, and civic education and awareness initiatives. RVs from the Pashtun ethnicity showed a loweress willingness to accept the establishment of composting centres and waste charges compared to their RNV counterparts; they demonstrated a heightened preference for recycling facilities and civic education and awareness. The study suggests that cultural and health diversity should be considered when designing waste management policies in resource-constrained rural areas.