Energy Landscape and Emission Analysis of Pakistan's Leather Industry

Summary

This December 2025 ADS study maps energy use, renewable uptake and decarbonization readiness across 40 firms in Pakistan's leather industry, a sector dominated by SMEs (80% of the sample) and geographically clustered, export-oriented tanneries. Based on primary survey data, it documents electricity and generator-fuel consumption patterns, solar PV adoption and intentions, and power-outage frequency, then sets out a staged (short/medium/long-term) roadmap of institutional, regulatory, financing and MRV recommendations for the sector's decarbonization.

Key Points

• 1The survey sample was 80% SMEs and 20% large-scale firms, reflecting the sector's SME-dominated structure.
• 295% of surveyed leather firms report regular power outages, and 85% rely on diesel generators to cope with them.
• 3Among firms without solar installed, 88.9% (66.7% within 6 months-1 year plus 22.2% within 1-2 years) said they plan to install solar PV, versus 11.1% not considering it.
• 4A 10-40 kW SME-scale solar PV installation is estimated to generate 15,000-60,000 kWh annually while reducing CO2 emissions by 6,750-27,000 kg per year and coal use by 6,000-24,000 kg per year.
• 5The report recommends mandatory smart metering and digital reporting for medium/large firms, cluster-based monitoring for SMEs, and blended finance (concessional funds, SBP green windows, buyer co-finance) with performance-based incentives to accelerate adoption.