Dhaka:The government will offer crucial technical and financial support to tanneries that have not yet commenced production after relocating to the Savar Tannery Industrial Estate, announced Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir.
According to Bangladesh Sangbad Sangstha, the government is emphasizing environmental compliance, modern waste management, and obtaining international certification to bolster the competitiveness of the country's leather industry on a global scale. The minister stressed that tanneries failing to meet environmental regulations would not be permitted to operate.
Minister Muktadir made these remarks as the chief guest at the Bangladesh-Netherlands Sustainable Trade Forum 2026 and during the inauguration of the CBI Home Textiles and Leather Programme held in the capital. The event was organized jointly by the Centre for the Promotion of Imports from Developing Countries (CBI) of the Netherlands and LightCastle Partners.
He highlighted that Bangladesh exported leather and non-leather products worth approximately US$1.78 billion last year, showcasing the sector's considerable export potential. The minister identified the European Union as a promising market and noted that India has become a major buyer of Bangladeshi leather products.
Addressing the delayed relocation of tanneries from Hazaribagh to Hemayetpur in Savar, the minister acknowledged the setback it caused to the leather industry's development. The government is currently undertaking effective measures to resolve long-standing issues in the sector.
Factories covering 50,000 square feet or more will be required to install their own effluent treatment plants (ETPs), and all tanneries in Savar must obtain certification from the international Leather Working Group (LWG). The government is committed to maintaining environmental standards and regulatory compliance.
Efforts are underway to enhance the central effluent treatment plant's (CETP) capacity at the Savar tannery estate and to install an advanced chromium recovery unit for improved waste management. The minister also underscored the importance of cottage, micro, small, and medium enterprises (CMSMEs) in promoting inclusive economic growth and reducing income inequality.
The CMSME sector currently contributes less than a quarter of the country's GDP, and its contribution must reach at least 60 percent to mitigate economic disparities. The government is restructuring the SME Foundation to facilitate easier access to institutional support and credit facilities for small and medium entrepreneurs.
The allocation for the SME loan refinancing program has been increased from Tk 300 crore to Tk 2,000 crore since the current government took office. The program has achieved a loan recovery rate of 98 percent, reflecting the financial discipline of small and medium entrepreneurs.
The minister noted that Bangladesh and the Netherlands could explore deeper cooperation in sustainable industrialization, technology transfer, and skills development. The Netherlands' expertise could enhance the competitiveness of Bangladesh's home textiles and leather industries.
The event was also addressed by Netherlands Ambassador to Bangladesh Joris van Bommel and CBI Managing Director Judith Arends, with representatives from various sectors and stakeholders in attendance.