What is SMEDA's Banana Fibre Project and what it means for Pakistan?

LAHORE (Dunya News) – The Small and Medium Enterprises Development Authority (SMEDA), in collaboration with the Food and Agriculture Organization (FAO) and other partners, has launched an innovative project aimed at transforming banana waste into eco-friendly textile fibre.

The initiative, designed to promote the bio-economy and circular growth in Pakistan as part of the Ministry of Industries and Production’s efforts to achieve national economic objectives, was formally introduced during an inception workshop titled “Bananas in Pakistan’s Bio-economy: Transforming Waste into Textile”. The event was held on the sidelines of the flagship “Made in Pakistan – SME Cluster Showcase Expo 2026”.

SMEDA officials said the project forms part of the Elimination of Hazardous Chemicals from Supply Chains Integrated Programme, funded by the Global Environment Facility (GEF) and executed by UN agencies, with implementation partners selected across eight countries.

Keeping in view the importance of climate-resilient initiatives in Pakistan, officials noted that SMEDA is the lead executing partner, working alongside the Ministry of Climate Change and Environmental Coordination, Sindh government departments, FAO and the National Textile University. The initiative is expected to support Pakistan’s response to climate challenges while contributing to national economic growth under the vision of Prime Minister Shehbaz Sharif.

The inception workshop brought together policymakers, development partners, researchers and entrepreneurs to examine the potential of banana waste as a sustainable raw material for Pakistan’s textile and allied industries.

Moderating the event, Sheharyar Tahir, General Manager Gender and Sustainability at SMEDA, said the project would run from 2026 to 2031 and is expected to engage 40,000 women. He added that young students would also be involved in the initiative, which is funded by the Global Environment Facility and executed by UN agencies across eight countries.

Citing studies, he said banana crops in Pakistan are cultivated over 40,000 hectares, with significant quantities of agricultural residue either discarded or burnt. “This biomass can be utilised to extract raw banana fibre and produce textile goods, handicrafts, bags and packaging materials,” he explained.

He added that the initiative would focus on pilot projects, technology transfer, training and capacity building, certification support, market linkages and the development of traceability systems.

Amina Bajwa, Assistant FAO Programme, observed that Pakistan remains among the most climate-vulnerable countries, facing challenges including agricultural emissions, residue burning and environmental degradation. She emphasised that converting banana waste into high-value products offers a practical pathway to reduce pollution while creating new income streams.

“The collaborative efforts will help Pakistan earn revenue and mark the beginning of a journey towards sustainable bio-economy solutions,” she said.

Muhammad Ijaz Ghani, Senior Joint Secretary at the Ministry of Climate Change and Environmental Coordination, described the project as inspirational and socially inclusive. He noted its potential contribution to Pakistan’s largest export sector, textiles.

He stressed the importance of tackling pollution and resource depletion while appreciating SMEDA’s leadership in advancing climate-friendly initiatives aligned with national priorities. Projects of this nature, he said, play an important role in promoting the circular economy.

He added that the Ministry of Climate Change and Environmental Coordination had launched several initiatives to counter the adverse effects of climate change and emphasised the need for continued exchange of perspectives to achieve economic objectives.

Dr Julius, FAO Programme Coordinator and Provincial Head Sindh, highlighted Sindh’s central position as the epicentre of Pakistan’s banana economy. He expressed concern over water intensity and post-harvest losses, noting that nearly 16 per cent of bananas go to waste.

He underlined the need for further research and for ensuring that farmers’ voices remain central to project design and implementation.

Sharing his insights, Habibur Rehman of the National Textile University-FAO team presented the project framework, explaining that the initiative aims to reduce Pakistan’s dependence on imported cotton while addressing pollution caused by agricultural waste.

He identified key barriers including regulatory gaps, limited financing, weak institutional coordination and value-chain shortcomings. The project’s core objective, he said, is to accelerate Pakistan’s bio-economy by converting banana waste into usable fibre.

During the workshop, Sheharbano, a seller of banana fibre products, shared her experience and thanked SMEDA for providing support and a platform to showcase her work. She said the initiative had enabled her to earn a livelihood and strengthened her commitment to promoting banana fibre products as part of Pakistan’s economic progress.

The session concluded with an interactive question-and-answer segment and panel discussion, allowing stakeholders to exchange views on implementation, scalability and market access.

In his closing remarks, Ashfaq Ahmed, General Manager Microenterprise at SMEDA, described the initiative as a landmark collaboration between SMEDA and FAO. He commended participants for their contributions, which he said would help ensure effective execution of the project.

He noted that the project aims to convert banana waste into fibre for textiles and other products, reduce pollution impacts, strengthen the value chain and create income-generating opportunities for small and medium enterprises across the country.