Pakistan has launched its first-ever digitally traceable leather hides, marking a major shift in how the country produces and monitors one of its top export commodities.
Spearheaded by WWF-Pakistan under the project Pakistan Leather Sector: Traceability, Cleaner Production, and Circularity, the initiative is aimed at modernizing the nation’s leather value chain through data-driven transparency, cleaner manufacturing, and circular practices.
The project is funded by the UK International Development’s Sustainable Manufacturing and Environmental Pollution (SMEP) program.
Addressing industry challenges
Pakistan’s leather sector, the country’s third-largest export industry and a key contributor to national GDP, has long struggled with inefficient practices, lack of accountability, and minimal environmental oversight. These limitations have increasingly prevented manufacturers from meeting the requirements of international buyers, particularly as global markets shift toward sustainability and traceability.
With this pilot, WWF-Pakistan and its collaborators, including the Punjab Agriculture & Meat Company (PAMCO), Information Technology University Lahore (ITU), Pakistan Council of Scientific and Industrial Research (PCSIR), and Leatherfield Pvt Ltd, have introduced a digital traceability system that captures verified supply chain data from farms to tanneries.
Pakistan, one of the world’s leading leather producers, counts leather as its second-largest export industry after textiles, contributing around 4% to GDP. Total exports of leather products declined to $624 million during July 2023 to May 2024 from $677 million, according to the country’s statistics bureau. The decline is attributed to the rising global demand for artificial alternatives. The key leather export markets include the United States, Germany, the Netherlands, Italy, and the UK, according to Trade Development Authority of Pakistan (TDAP).
First batch of Traceable Hides delivered
The project reached a milestone with the arrival of the first batch of digitally traceable leather hides at a partner tannery. These hides are linked directly to specific farms and suppliers via a digital dashboard, establishing a traceable path from origin to processing.
According to WWF-Pakistan, this development lays critical groundwork for a transparent and compliant leather industry, positioning it to meet the emerging requirements of the European Union Deforestation Regulation (EUDR)—a move expected to influence trade access in key global markets.
“This is a breakthrough moment for Pakistan’s leather sector. Through this project, we are not only setting the stage to make leather traceable, but also driving change towards more ethical and environmentally responsible production,” said Dr. Masood Arshad, Senior Director Programmes, WWF-Pakistan.
By integrating digital traceability and cleaner production practices, the initiative is designed to not only improve environmental performance but also enhance Pakistan’s competitiveness in high-value markets, especially in Europe and the Middle East, where regulatory pressures around ethical sourcing and environmental impact are tightening.
Step towards a Sustainable Future
The project underscores Pakistan’s growing engagement with sustainable manufacturing trends and its efforts to transition traditional industries into modern, compliance-ready sectors. While still in the pilot phase, the success of the first traceable batch is expected to drive further adoption of the model across the industry.
With increasing demand for responsibly sourced leather from global buyers, the integration of traceability mechanisms presents Pakistan with both an environmental opportunity and an economic imperative. As the country modernizes its industrial base, traceability could become a central feature of its export credibility.