Desk Report:
The government will provide necessary assistance to tanneries that have yet to commence production following their relocation to the Savar Leather Industrial Estate. Simultaneously, top priority is being given to ensuring environmental standards, modernizing waste management, and obtaining international certifications to enhance the global competitiveness of the leather industry. Khandaker Abdul Muqtadir, Minister of Commerce, Industries, and Textiles & Jute, stated that no tannery failing to comply with environmental regulations will be permitted to operate.
The Minister made these remarks while serving as the chief guest at an event held on Wednesday (November 11) at the Sheraton Hotel in the capital, titled “Bangladesh–Netherlands Sustainable Trade Forum 2026 and Launch of the CBI Home Textiles and Leather Programme.” The event was jointly organized by the Centre for the Promotion of Imports from Developing Countries (CBI) of the Netherlands and LightCastle Partners.
The Commerce Minister noted that there is immense potential for the export of leather and leather-based products from Bangladesh. Last year, the country exported leather and non-leather goods totaling approximately 1.78 billion US dollars. The European Union represents a significant and promising market for Bangladesh, while neighboring India has also emerged as a major buyer of Bangladeshi leather products. To fully capitalize on this potential, the Minister emphasized the importance of product quality, environmental compliance, and the development of production systems aligned with the demands of the international market.
Pointing out that the prolonged process of relocating tanneries from Hazaribagh to Hemayetpur in Savar has hindered the progress of the leather industry, the Minister stated that the government is now taking effective measures to address the existing challenges in the sector. Technical and financial support will be provided to help those tanneries that have not yet begun production, despite their relocation to the Savar Leather Industrial Estate, to become operational. He stated that it will be mandatory for every factory with an area of 50,000 square feet or more to install its own Effluent Treatment Plant (ETP). Furthermore, all tanneries in Savar must obtain certification from the international Leather Working Group (LWG). There will be no leniency regarding compliance with environmental standards and regulations.
The Minister added that initiatives are underway to enhance waste management at the Savar Leather Industrial Estate by increasing the capacity of the Central Effluent Treatment Plant (CETP) and installing an advanced chromium recovery unit. The implementation of these measures will enable the country’s leather industry to secure a stronger position in the international market.
Highlighting the importance of the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector to the national economy, the Commerce Minister noted that the growth of this sector is essential for fostering inclusive economic growth, creating employment, and reducing income inequality. Currently, the CMSME sector contributes less than a quarter to the country’s Gross Domestic Product (GDP). He emphasized the need to increase this contribution to at least 60 percent to help reduce economic disparity.
Addressing the challenges small entrepreneurs face in securing financing, the Minister pointed out that many promising entrepreneurs are often denied necessary funding due to complex documentation requirements and procedural hurdles in obtaining bank loans. To resolve this, steps are being taken to restructure the SME Foundation, ensuring that small and medium-sized entrepreneurs can more easily access institutional support and credit facilities.
He mentioned that since he assumed his current role, the allocation for the SME sector’s loan refinancing program has been increased from BDT 300 crore to BDT 2,000 crore. The loan recovery rate for this program stands at 98 percent, which serves as a positive testament to the capability and financial discipline of small and medium-sized entrepreneurs. Emphasizing the need to further strengthen bilateral trade relations between Bangladesh and the Netherlands, the Commerce Minister stated that cooperation between the two nations in areas such as sustainable industrialization, technology transfer, skills development, and expanding access to international markets could unlock new potential. In particular, the Netherlands’ technical and institutional expertise in export-oriented sectors—such as home textiles and the leather industry—could play a vital role in enhancing the competitiveness of Bangladesh’s industrial sector.
The Minister commended the support provided by the Dutch government, the Centre for the Promotion of Imports from Developing Countries (CBI), and other relevant development partners toward the advancement of Bangladesh’s small and medium-sized enterprises (SMEs) and the leather industry. He also reaffirmed a commitment to strengthening Bangladesh’s position in the global market through the adoption of sustainable production systems, eco-friendly industrialization, and the diversification of exports.
The event featured discussions on expanding sustainable trade between Bangladesh and the Netherlands, fostering mutual cooperation within the industrial sector, and developing international markets for home textiles and leather products. During the proceedings, the CBI’s home textile and leather program was officially launched. This new initiative focuses on enhancing the capacity of these sectors, ensuring compliance with international market standards, and broadening export opportunities.
Joris van Bommel, the Ambassador of the Netherlands to Bangladesh, addressed the event as a special guest. Judith Arends, Managing Director of the Centre for the Promotion of Imports from Developing Countries (CBI), also delivered remarks.
The event was attended by representatives from the public and private sectors, development partners, entrepreneurs, and other relevant stakeholders.
