The Asia-Plus editorial team received an official response from the Ministry of Industry and New Technologies of Tajikistan to a request sent as part of preparing the article “Why doesn't Tajikistan process leather?”. The ministry’s response came after our article was already published.
Aziz Nazar, Deputy Minister of Industry and New Technologies, answered the editorial’s questions.
Q. How many leather and footwear enterprises are officially operating in Tajikistan today? What are their real production capacities and degree of utilization?
A. There are 5 enterprises in the republic engaged in the processing of cattle and small ruminant hides, as well as 22 enterprises producing footwear. In 2025, the sector processed 639,447 animal hides, and footwear production amounted to over 880,000 pairs. However, the degree of utilization of the production capacities at leather processing enterprises remains low, averaging 30-40% of the designed capacity. The main reasons for this low utilization include outdated technological equipment, limited access to high-quality raw materials, and a lack of market demand for the products.
Q. Why, despite the annual production of 1.5-1.7 million hides, is less than 2% processed?
A. Currently, there is a low level of hide processing in the country. The main reasons for this situation include the insufficient availability of modern technologies for primary processing of hides (including conservation and sorting), the lack of large-scale leather factories with full-cycle production equipped with modern technology, and the higher profitability of raw material exports compared to organizing deep processing at the initial stage. Additionally, a significant issue is the shortage of highly skilled personnel in this industry.
Q. Why does the country remain an exporter of cheap semi-finished products while importing expensive finished goods?
A. From January to December 2025, the export of primary-processed leather amounted to 1.8 million USD. The main reasons for exporting primary-processed leather are the lack of experience in organizing full production cycles, the absence of specialized design and engineering schools, and limited access to international markets for finished products.
Q. What measures are planned to increase domestic raw material processing? What steps are being taken to change the export policy—transitioning from raw materials to finished products?
A. To increase the volume of raw material processing within the country and change the export policy, it is necessary to modernize existing facilities and build new full-cycle enterprises with modern technological equipment. In this regard, the Ministry has prepared investment projects for the development of the leather processing sector, including a project for the construction of a leather goods factory and a footwear factory. These projects have been sent to the relevant ministries and agencies for review. Separate items for establishing cooperation in this sector are included in the intergovernmental commission protocol. The realization of these initiatives will involve active attraction of direct investments.
Q. How will the Industrial Development Strategy through 2030 be implemented with regard to the leather industry?
A. The industrial development strategy for the Republic of Tajikistan through 2030, approved by the government decree on March 27, 2018, No. 159, prioritizes the processing of leather into finished products. It is planned to increase leather processing volumes to 2 million hides by 2030 through the attraction of direct investments, the creation of new production capacities with modern technological equipment, and expanding into new export markets for finished products.
Q. What is the reason for the absence of major investors in the leather production sector?
A. The main reasons for the lack of major investors are the insufficient competitiveness of the produced products in global markets and limited demand in the domestic market. Domestic manufacturers face tough competition from large producers in China, India, Pakistan, and Bangladesh, who have significant advantages in production scale and product cost.
Q. What government support measures are provided for leather industry enterprises (tax breaks, subsidies, loans)?
A. To stimulate the development of the leather industry, the government has provided benefits and preferences under the Tax Code, Customs Code, and other regulatory legal acts of the Republic of Tajikistan, aimed at creating favorable conditions for investment and production modernization.
