Facilitation of Green Financing for Leather and Textile SMEs from Financial Institutions in Pakistan

The textile and leather sectors are central to Pakistan’s economy and depend on the contributions of small and medium-sized enterprises (SMEs). However, the unsustainable use of resources and poor environmental management practices present a major threat to the sectors’ sustainability. In light of these intersecting challenges, WWF-Pakistan’s International Labour and Environmental Standards Application in Pakistan’s SMEs (ILES) project has set out to improve water and resource management practices and energy consumption in the textile and leather sectors, especially by resource-intensive SMEs, through multi-stakeholder approaches.

The means for achieving these goals lies within the establishment of partnerships between various stakeholder groups, including SMEs, public authorities, intermediaries working with SMEs, financial institutions, and multi-national corporations (MNCs). These stakeholders face intersecting challenges in facilitating targeted green financing solutions. Multi-stakeholder collaboration and the buy-in of various public and private sector actors is key to addressing and developing tailored solutions. This study assesses the needs, interests, and challenges of the various stakeholder groups to determine the best way forward.