ISLAMABAD, Jul 05 (ABC):The government is planning to launch a Rs 2.8 billion Leather Sector Skills Development Programme under the Public Sector Development Programme (PSDP) to modernise training infrastructure, enhance workforce productivity, and strengthen export competitiveness.
According to documents available with Wealth Pakistan, the proposed initiative will be implemented by the Ministry of Industries and Production through the Small and Medium Enterprises Development Authority (SMEDA), in collaboration with the National Vocational and Technical Training Commission (NAVTTC) and provincial Technical Education and Vocational Training Authorities (TEVTAs).
The programme targets Pakistan’s leather, garments, footwear, and leather goods value chain, which currently employs around 400,000 workers across nearly 2,000 firms. Through the programme, the government plans to upgrade training facilities at the Institute of Leather Technology, Karachi, and a technical training facility in Gujranwala. The project aims to align workforce skills with modern industry requirements, increasing the sector’s capacity to attract investment and meet international compliance standards.
Key components of the initiative include a comprehensive skills gap assessment, the development of industry-aligned curricula, the rehabilitation and expansion of technical institutes, the installation of modern machinery and equipment, workforce certification programmes, and trainer capacity building through partnerships with national and international institutions.
The programme is expected to create a more productive and internationally competitive workforce, improve quality compliance, reduce production defects, and enhance buyer confidence in Pakistani leather products.
The project is also linked to the government’s broader export growth strategy, with planners aiming to help the leather sector achieve $2.5 billion in exports by 2039.
Under the proposed funding plan, Rs560 million will be allocated during FY2026-27, while Rs2.24 billion will be spent in FY2027-28. The project has no foreign-exchange component and is expected to be completed within two years.
The document states that public investment is essential because private firms alone cannot modernise the sector’s training ecosystem at the scale required. It adds that the initiative will help reduce compliance costs for SMEs and support Pakistan’s transition toward higher-value exports in global leather markets.
