The government will provide financial and technical support to restart the non-operational tanneries in Savar, Commerce Minister Md. Muktadir Hossain announced on Wednesday. Highlighting the sector's export potential, he said Bangladesh earned approximately $1.78 billion from leather and non-leather product exports last year.

Sector potential and government initiative

Speaking about the significance of the leather industry, the commerce minister said the sector holds immense export potential and could open new avenues for the country's economic progress. As part of the government's support package, the refinancing allocation for small and medium enterprises (SMEs) has been raised to Tk 2,000 crore, which is expected to provide tanneries with the necessary financial assistance to resume operations.

Current state of the tannery industry

Many of the tanneries relocated to the Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estate in Hemayetpur, Savar, have remained closed for extended periods due to various reasons, including environmental concerns, technical complications, and financial constraints. The commerce minister's announcement is seen as a significant step for the sector, and tannery owners are optimistic that the idle factories can be restarted quickly with the government's promised financial and technical assistance.

Leather sector's contribution to export earnings

The commerce minister noted that the country earned $1.78 billion last fiscal year from exports of leather, leather goods, and non-leather products, underscoring the sector's overall export potential. Stakeholders believe that if the government's new initiative is implemented, the Savar tanneries will resume operations, leading to increased employment and higher export earnings. However, details regarding the distribution of this support and the timeline for restarting the tanneries remain to be seen.