Pakistan Leather Sustainability: Traceability, Cleaner Production and Circularity

Last updated on 1 October 2025

Background Information

The leather sector is a vital component of Pakistan’s economy, ranking as the third-largest export industry and contributing approximately 4% to the national GDP. It is a primary source of livelihood for over a million people. However, despite its economic significance, the industry faces several critical challenges due to its impact on the environment, primarily through the release of hazardous chemicals and waste and the lack of transparency to trace different actors within the value chain to ensure responsible sourcing practices. With global markets increasingly leaning towards sustainably and ethically sourced products, the Pakistan leather industry needs to reduce the impacts and increase transparency of its value chain.

To address these issues, there is a pressing need for the adoption of robust traceability, along with the implementation of cleaner production practices and circular economy principles in the leather value chain. These strategies seek to minimise the overall environmental footprint across the supply chain, enabling the industry to comply with both national and international environmental standards.

WWF-Pakistan has collaborated with partners including Punjab Agriculture & Meat Company (PAMCO), Pakistan Council Of Scientific & Industrial Research (PCSIR), Information Technology University (ITU), and Leather Field Pvt Ltd. to demonstrate a pioneering initiative in Pakistan that aims to identify the actors in the leather value chain while simultaneously promoting cleaner production and circularity in the leather sector. This approach not only aims at addressing the existing environmental challenges but also positions the industry to meet the growing demand for responsibly sourced leather products in global markets.

The project aims to address pollution and human impacts associated with Pakistan leather sector by enhancing the manufacturing process and building capacity of public sector and value chain players through a three-pronged approach:

To develop and implement a digital traceability toolkit to trace leather hides from direct suppliers/direct supplier farms to the factory. This will increase transparency, provide insights into the leather value chain and improve compliance with international standards.
To recycle waste generated from leather processing by converting trimmings, fleshing, and shavings into water-resistant surfactants. This will promote circularity within the sector.
To decrease pollution in wastewater by utilising lipase enzymes, phasing out the need for imported commercial agents and toxic organic solvents. This will foster cleaner production and a reduced impact on workers’ health.

Updates

The most recent project update is organised according to the key project objectives:

Traceability tool development
The team has developed a functional digital traceability toolkit and dashboard, which continues to be showcased to key partners, such as PAMCO and LeatherField, through dedicated demonstration and orientation sessions. Stakeholder feedback is being incorporated, with ongoing refinement planned throughout the project. In parallel, the database for direct suppliers and supplier farms is under development. The commencement of the physical tagging of hides (at the slaughterhouse) and the subsequent stamping of the hides (at the tannery) is scheduled to start shortly. In preparation, leather factory staff have been recruited and trained on the tagging process to ensure a smooth rollout.

Cleaner production
The pilot facility for conducting waste valorisation research and development has been established at PCSSIR, equipped with essential machinery including drums and a bioreactor. Implementation of the two pilot interventions, surfactant and lipase enzyme production, is planned for this quarter.

Stakeholder engagement and outreach
The team continues to engage key local and international stakeholders to not only amplify the project and its aims but also to gain valuable feedback and inputs from all actors in the supply chain in order to improve the project outcomes. Some key events include:

WWF in collaboration with Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and National Compliance Center (NCC) hosted a workshop for leather and textile sector on traceability and due diligence in Lahore, promoting dialogue on supply chain transparency. [Feb 2025]
The Project Lead attended and presented at the Asia Pacific Leather Fair held in Hong Kong to share Pakistan’s leather sector’s approach to traceability, cleaner production and circularity. Bilateral meetings were held with the Leather Working Group (LWG), WWF-USA, Sustainable Leather Foundation and Cotance (the main European trade association). [March 2025]
WWF-Pakistan, in partnership with UNCTAD, hosted an online webinar under the SMEP Programme focused on traceability and due diligence in the leather supply chain. Experts from organisations including LWG and the International Trade Centre (ITC) shared insights on challenges in leather traceability, compliance with the EU Deforestation Regulation, and introduced the digital traceability toolkit to a large online audience. [April 2025]
A Memorandum of Understanding (MoU) has been signed with Pakistan Tanners Association (PTA) North to promote sustainable manufacturing and co-devise solutions to reduce environmental impact and footprint while encouraging the adoption of the traceability toolkit.
The project team held an awareness session at the Government College Women University Sialkot (GCWUS) titled “Research Opportunities for Women in the Leather Sector”, encouraging female students to explore careers in the field, where women currently represent just 1% of the workforce. [April 2025].
PhD scholar Ms. Afsheen from Government College University Lahore (GCUL) is being supported under the SMEP Project for her research on circularity in leather. She recently conducted field visits to tanneries in Sialkot.
WWF presented its work on sustainable manufacturing and pollution reduction at the 1st International Conference on Environment, Energy, Climate Change, and Sustainability, hosted by the University of Engineering and Technology, Lahore. [May 2025].