Government will assist in restarting closed tanneries in Savar: Commerce Minister

Minister made these remarks as chief guest at an event titled ‘Bangladesh–Netherlands Sustainable Trade Forum 2026 and inauguration of the CBI Home Textile and Leather Programme’ held at the Sheraton Hotel in the capital on Wednesday (11 November). The event was jointly organized by the Netherlands' Centre for the Promotion of Imports from Developing Countries (CBI) and LightCastle Partners.

The minister said Bangladesh has huge potential in exports of leather and leather goods. Last year, products worth about 1.78 billion US dollars were exported, including leather and non-leather goods. The European Union is an important and promising market for Bangladesh, while neighboring India has also emerged as one of the major buyers of leather goods. He stressed building a production system in line with product quality, environmental compliance and international market demand to utilize this potential.

Noting that the long delay in relocating tanneries from Hazaribagh to Hemayetpur in Savar has created obstacles to the progress of the leather industry, the minister said technical and financial assistance will be provided to make operational the tanneries that have not started production even after relocation. Installation of own ETP will be made mandatory for every factory of 50,000 square feet or more, and all tanneries in Savar must obtain certification from the Leather Working Group (LWG). No concession will be given in following environmental standards. Besides, initiatives are being taken to increase the capacity of CETP in Savar Leather Industrial City and install an improved chromium recovery unit.

Highlighting the importance of the CMSME sector in the country's economy, the minister said development of this sector is essential to inclusive growth, job creation and reducing income inequality. Currently, the contribution of the CMSME sector to GDP is less than one-fourth; to reduce economic inequality, it needs to be raised to at least 60 percent. Initiatives are being taken to restructure the SME Foundation anew to remove financing barriers for small entrepreneurs.

He said that after taking charge, refinancing allocation in the SME sector has been increased from Tk 300 crore to Tk 2,000 crore. The loan recovery rate in this programme is 98 percent, which is a positive example of the capacity and financial discipline of small and medium entrepreneurs.

Emphasizing strengthening bilateral trade relations between Bangladesh and the Netherlands, the minister said cooperation between the two countries in sustainable industrialization, technology transfer, skills development and expanding access to international markets can create new possibilities. Netherlands Ambassador to Bangladesh Joris van Bommel and CBI Managing Director Judith Arends spoke as special guests at the event. Representatives from the public and private sectors, development partners and industrial entrepreneurs were present.