Bangladesh Commerce Minister Khandakar Abdul Muktadir said the country’s leather industry has the potential to earn more than $10 billion in export earnings while speaking in Parliament on 8 June 2026. He said leather exports have stayed stagnant at around $1-$1.15 billion per year for the last three years due to structural challenges.
He said the relocation of tanneries from Hazaribagh to Savar was meant to modernise the sector and improve environmental compliance but it has reduced processing capacity due to implementation gaps. He added that The capacity of leather processing has significantly decreased compared to earlier levels.
The minister said the impact is more visible during Eid-ul-Adha as both collection and preservation of raw hides have dropped sharply.
To revive the sector, the government is working with the Ministry of Livestock to improve slaughterhouse operations, ensure mechanised skinning and better hide collection.
He also said the Central Effluent Treatment Plant (CETP) in Savar will be upgraded from 14,000-16,000 cubic metres to 25,000 cubic metres per day.
“If these measures are properly implemented, the leather industry will emerge as a strong alternative export sector for Bangladesh”
– Khandakar Abdul Muktadir
Financial and technical support will also be given to tanneries to set up their own effluent treatment plants. All factories in the Savar leather zone will come under full environmental compliance with government support.
