Dhaka:The government has pledged to provide essential technical and financial assistance to tanneries in Savar that have yet to commence production following their relocation from Hazaribagh, as stated by Commerce Minister Khandaker Abdul Muktadir during an event on Wednesday.
According to United News of Bangladesh, the Commerce Minister highlighted the government's emphasis on environmental compliance, modern waste management, and obtaining international certification to boost the global competitiveness of Bangladesh's leather industry.
The minister made these statements at the inauguration of the Bangladesh-Netherlands Sustainable Trade Forum 2026 and the CBI Home Textiles and Leather Programme. The event, held at a hotel in the capital, was organized jointly by the Netherlands' Centre for the Promotion of Imports from Developing Countries (CBI) and LightCastle Partners. During his speech, Muktadir also warned that any tannery failing to adhere to environmental regulations would not be permitted to operate.
Minister Muktadir noted the significant potential for Bangladesh in exporting leather and leather goods, with exports reaching approximately US$1.78 billion in both leather and non-leather categories last year. He identified the European Union as a key market, with India emerging as a major buyer of Bangladeshi leather products. He emphasized the importance of ensuring product quality, environmental compliance, and production systems that align with international market standards.
Addressing the delay in relocating tanneries from Hazaribagh to Hemayetpur in Savar, the minister acknowledged the hindrance this posed to the sector's development. The government is now implementing effective initiatives to resolve these issues. He stated that every factory with an area of 50,000 square feet or more would need to install its own effluent treatment plant (ETP). Additionally, efforts are underway to enhance the capacity of the Central Effluent Treatment Plant (CETP) at the Savar Tannery Industrial Estate and to introduce an improved chromium recovery unit for more effective waste management. These measures are expected to strengthen Bangladesh's leather industry in international markets.
Muktadir also highlighted the importance of the cottage, micro, small, and medium enterprises (CMSMEs) sector for inclusive economic growth, employment generation, and reducing income inequality. He stressed the need to increase the sector's contribution to at least 60 percent of the country's GDP to reduce economic disparities. The minister pointed out the financing barriers faced by small entrepreneurs and called for the removal of complicated documentation and procedural hurdles in securing bank loans, which deprive many promising entrepreneurs of necessary funds.
Regarding Bangladesh-Netherlands trade relations, Muktadir expressed that cooperation between the two nations could create new opportunities in sustainable industrialization, technology transfer, skills development, and expanded access to international markets. He acknowledged the Netherlands' technological and institutional expertise as vital in making Bangladesh's export-oriented sectors, particularly home textiles and leather, more competitive. The minister also appreciated the support from the Dutch government, CBI, and development partners for the development of Bangladesh's SME and leather sectors.
The CBI Home Textiles and Leather Programme, inaugurated at the event, focuses on capacity development, compliance with international standards, and expanding export opportunities. Dutch Ambassador to Bangladesh Joris van Bommel and CBI Managing Director Judith Arends were among the speakers. The event was attended by representatives from the public and private sectors, development partners, entrepreneurs, and other stakeholders.