ISLAMABAD, Jul 04 (ABC): The government plans to launch a Rs2.8 billion Leather Sector Skills Development Programme under the Public Sector Development Programme (PSDP). The initiative aims to modernise training infrastructure, improve workforce productivity and strengthen Pakistan’s leather exports.
According to documents available with Wealth Pakistan, the Ministry of Industries and Production will implement the programme through the Small and Medium Enterprises Development Authority (SMEDA). NAVTTC and provincial Technical Education and Vocational Training Authorities (TEVTAs) will support implementation.
Programme targets leather value chain
The programme will support Pakistan’s leather, garments, footwear and leather goods industry. The sector employs about 400,000 workers across nearly 2,000 firms.
The government plans to upgrade training facilities at the Institute of Leather Technology in Karachi and a technical training institute in Gujranwala.
The initiative aims to align workforce skills with modern industry requirements. It also seeks to increase the sector’s ability to attract investment and meet international compliance standards.
Modern training and certification
The programme includes a comprehensive skills gap assessment and the development of industry-aligned curricula.
Authorities will also rehabilitate and expand technical institutes. In addition, they will install modern machinery and equipment to improve practical training.
The initiative also includes workforce certification programmes and trainer capacity-building. National and international institutions will support these activities through technical partnerships.
Supporting exports and competitiveness
The government expects the programme to create a more productive and internationally competitive workforce.
It also aims to improve product quality, reduce production defects and strengthen buyer confidence in Pakistani leather products.
Furthermore, the initiative supports the government’s broader export growth strategy. Policymakers want the leather sector to achieve $2.5 billion in exports by 2039.
Funding and implementation
Under the proposed funding plan, the government will allocate Rs560 million in FY2026-27. It will spend the remaining Rs2.24 billion in FY2027-28.
The project does not include any foreign exchange component and is expected to finish within two years.
According to the document, public investment remains essential because private firms alone cannot modernise the sector’s training ecosystem on the required scale.
The document adds that the programme will reduce compliance costs for small and medium-sized enterprises (SMEs). It will also help Pakistan move towards higher-value leather exports in global markets.
