Pakistan is a leading player in the textile industry, with a significant share of its economy reliant on textile-based exports and a large portion of the workforce engaged in this sector. The country processes vast amounts of textile waste—both post-industrial and post-consumer, from local sources as well as imports, primarily for resale and recycling. In fact, Pakistan is one of the world’s leading countries for importing, re-exporting, reselling, and recycling used textiles. However, much of this activity remains in the informal sector, where compliance, environmental protection, and worker safety are often compromised.
Asad Naqvi, Head of the Economic and Trade Policy Unit at United Nations Environment Programme (UNEP), highlighted the importance of second-hand textiles for Pakistan’s economy, particularly for the small and medium enterprises (SMEs) and the local population. “59% of exports from Pakistan are textile-based; 40% of the workforce is associated with this sector and contributes 8.5% of its GDP,” he noted. Additionally, Prof. Dr. Yasir from the National Textile University (NTU) explained that the local textile industry in Pakistan produces substantial post-industrial waste, which is being effectively recycled into fibers, adding significant value to the economy.

Source: Reverse Resources Platform
Despite these efforts, Pakistan faces challenges in ensuring the sustainability and safety of its textile waste management and related decolorization practices. During a recent visit to the Satiana waste cluster in the Punjab region, the project team of Closed Loop Fashion (CLF), National Textile University (NTU), KnowTex Solutions and Reverse Resources met with waste handlers and recyclers and conducted an assessment to better understand current decolorization practices. The findings revealed urgent gaps in compliance, risk management, and health and safety protections, particularly in chemical treatment and wastewater management. Around 150 similar facilities in the cluster handle and recycle textile waste. Realizing how important it is to meet global standards while preserving the region’s long history of textiles, all stakeholders agreed to work closely together to enforce compliance measures and protect the competitive edge that this strong infrastructure offers.
Introducing the Satiana Waste Cluster Pilot
To address these challenges, we are launching a pilot project in the Satiana Waste Cluster, Pakistan’s largest textile waste handling hub located in the Punjab region. The project is being implemented jointly by CLF, KnowTex Solutions, RR and NTU, as part of the Sustainable Manufacturing and Environmental Pollution (SMEP) project, funded by the United Kingdom’s Foreign Commonwealth Development Office (FCDO) and is implemented in partnership with the United Nations Conference for Trade and Development (UNCTAD).
The pilot phase 1 will focus on developing a Blueprint for structured compliance measures for textile waste decolorization, including better chemical and wastewater management practices, while improving working conditions and protecting the environment.
The key goals of the pilot phase 1 include:
- Improving Working Conditions: Ensuring safer workplace health and safety (WHS)
- Establishing Compliance Standards: Creating clear guidelines for chemical handling and wastewater management
- Environmental Protection: Identification of effective wastewater treatment solutions to ensure it is managed responsibly and does not harm local water sources.
These foundational steps are critical in establishing a clear framework for improvement. Upon successful completion of Phase 1, the project will transition into Phase 2, which will involve the large-scale implementation of the identified improvements and sustainable solutions across the entire cluster.
Sustainable Manufacturing and Environmental Pollution (SMEP) is funded by the United Kingdom’s Foreign Commonwealth Development Office (FCDO) and is implemented in partnership with the UN Trade and Development (UNCTAD).