The leather sector is a vital component of Pakistan's economy, ranking as the third-largest export industry and contributes approximately four per cent 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 sustainable 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 with a digital toolkit 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 at addressing pollution and human impacts associated with Pakistan’s 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 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.

Disclaimer: The UK Government funds this research and pilot activity ‘Pakistan Leather Sector: Traceability, Cleaner Production and Circularity’ through UK International Development; however, the views expressed do not necessarily reflect the UK Government's official policies.