The leather industry risks losing its long-held competitive edge unless persistent environmental, infrastructural and access to finance challenges are addressed, experts warned at a webinar on Saturday.
They called for urgent reforms to restore confidence and strengthen the sector's export potential.
They also identified slow progress in value addition, limited product diversification, complex licensing procedures, an unfavourable tax regime and a shortage of skilled manpower as key factors hindering the industry's growth.
The discussion was moderated by PPRC Executive Chairman Dr Hossain Zillur Rahman.
Among the speakers were Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD); Md Tipu Sultan, Chairman of the Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association; Md Nurul Amin, Chairman of Bangladesh Krishi Bank; and Shaheen Ahmed, President of the Bangladesh Tanners Association.
In his remarks, Professor Mustafizur Rahman said that while Bangladesh once held strong prospects in the leather industry, that promise was gradually fading.
He highlighted the potential impact of the Carbon Border Adjustment Mechanism (CBAM) on export competitiveness and stressed the need for early preparation to meet emerging environmental standards in global markets.
"Bangladesh must prepare for CBAM, as failure to meet new environmental standards could weaken the competitiveness of our exports," he said.
Md Tipu Sultan drew attention to the continuing infrastructure and environmental compliance shortcomings at the Savar Tannery Industrial Estate.
He noted that the environmental facilities promised as the principal justification for relocating tanneries from Hazaribagh to Hemayetpur had yet to be fully established.
According to him, this failure has undermined the industry's credibility among international buyers, resulted in the loss of customers and created financial pressure not only for tanneries but also for smaller businesses linked to the leather value chain. "Because of this, we have also lost customers. Other small industries that are related to us are also incurring losses alongside us. This has made it increasingly difficult for smaller industry owners to expand their production," he said.
Bangladesh Krishi Bank Chairman Md Nurul Amin called for stronger government involvement in the collection, preservation and proper management of raw hides.
"With the help of the government, we must ensure that hides are not wasted," he said.
He also called for the immediate transfer of management of the Central Effluent Treatment Plant (CETP) from the Bangladesh Small and Cottage Industries Corporation (BSCIC) to either the Bangladesh Investment Development Authority (BIDA) or the Bangladesh Export Processing Zones Authority (BEPZA), along with the appointment of a competent operator.
Concluding the session, Dr Hossain Zillur Rahman urged a more comprehensive approach to the future development of the leather industry.
He noted that the relocation of tanneries from Hazaribagh to Hemayetpur was intended to protect the Buriganga River, yet pollution continues to affect both the Buriganga and the Dhaleshwari rivers.
He cautioned that well-intentioned but one-dimensional interventions do not always produce the desired outcomes.
Dr Rahman stressed that future policy measures must be based on careful planning that simultaneously considers environmental, economic, institutional and industry-related implications.
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