Dhaka: Commerce Minister Khandakar Abdul Muktadir today announced that the government is actively developing an integrated reform plan aimed at revitalizing Bangladesh's leather industry. The initiative seeks to reclaim the industry's global market stature through comprehensive reforms in the tannery sector, the attraction of fresh investments, and the establishment of internationally compliant production systems.
According to Bangladesh Sangbad Sangstha, the minister emphasized that the decision to relocate tanneries from Hazaribagh to Hemayetpur in Savar was strategically sound. However, he acknowledged that ineffective implementation and management have inflicted significant losses on the industry. Muktadir shared these insights during a policy dialogue titled "Advancing Bangladesh's Leather Sector: Challenges, Opportunities and Reform," held at BRAC Centre in Mohakhali.
Muktadir outlined plans to facilitate a "graceful exit" for current investors who are unable or unwilling to continue further investments, paving the way for new entrepreneurs to enter the sector. He highlighted the necessity of achieving 100 percent compliance in tannery operations and making Leather Working Group (LWG) certification compulsory to boost international market acceptance.
The minister further stated the government's aim to shift from exporting raw hides to promoting domestic processing and exporting high-value leather goods such as footwear and bags, thus establishing a "Bangladesh Leather" brand. Addressing one of the sector's significant challenges, Muktadir mentioned the construction of a new world-class Central Effluent Treatment Plant (CETP) at Savar, alongside potential renovations of the existing CETP.
Muktadir noted that while the CETP was initially designed to manage 25,000 cubic meters of waste daily, its current effective treatment capacity is approximately 14,000-15,000 cubic meters. As part of compliance measures, large tanneries will be mandated to install their own effluent treatment plants (ETPs), while smaller tanneries will need to integrate with the central CETP system.
In an effort to transform the Savar tannery industrial area into an integrated waste-management industrial zone, the government plans to establish multiple factories producing tallow, bone meal, and other usable products from solid tannery waste. The minister also disclosed initiatives to expand trade facilities with Japan, South Korea, and European countries, and to attract investments from leading leather industry companies in Spain and Italy.
Looking ahead, the government aims to launch a skills and design development center in Savar by 2027 to bolster the leather and other industries. Muktadir affirmed the government's commitment to restoring the leather sector's strength in the global market by enhancing skills, design capabilities, promoting eco-friendly production, facilitating investments, and resolving bonded facility complexities.
The event was attended by Australian Deputy High Commissioner to Bangladesh Clinton Pobke, FLAXA President Syed Nasim Manzur, SANEM Executive Director Dr. Selim Raihan, and various representatives from businesses, tanneries, footwear entrepreneurs, workers, and development partners.