LAHORE: 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, which aims to promote bio-economy and circular growth in Pakistan as part of Ministry of Industries and Production’s endeavours to achieve national economic objectives, was formally introduced during an inception workshop on “Bananas in Pakistan’s Bio-economy: Transforming Waste into Textile” held on the sidelines of the flagship “Made in Pakistan – SME Cluster Showcase Expo 2026”.
SMEDA officials say the project is part of the “Elimination of Hazardous Chemicals from Supply Chains Integrated Programme” which is funded by the Global Environment Facility (GEF) and executed by UN agencies, with implementation partners selected across eight countries.
Keeping in view the significance of climate-resilient initiatives in Pakistan, officials say SMEDA is proud to be the lead executing partner working alongside the Ministry of Climate Change and Environmental Coordination, Sindh Government departments, FAO and the National Textile University. It is meant for playing a vital role in helping Pakistan fight climate-related issues and 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 explore the potential of banana waste as a sustainable raw material for Pakistan’s textile and allied industries.
Moderating the event, Mr Sheharyar Tahir, GM Gender & Sustainability, SMEDA, said the project would run from 2026 to 2031 and 40,000 women would be engaged in it. He said young students would also be made part of the all-important project which was funded by the Global Environment Facility and executed by UN agencies. Implementation agencies had been selected across eight countries, he added.
Citing studies, he said banana crop in Pakistan is cultivated over 40,000 hectares and tonnes of it are discarded or burnt. “This can be used to extract raw banana fibre and make products related to textile, handicraft, bags, packaging etc,” he said.
He said the initiative would focus on pilot projects, technology transfer, training and capacity building, certification support, market linkages and development of traceability systems.
Ms Amina Bajwa, Assistant FAO Programme, noted that Pakistan was among the most climate-vulnerable countries facing challenges such as agricultural emissions, residue burning and environmental degradation. She emphasized that converting banana waste into high-value products offered a practical solution to reduce pollution while creating new income streams.
“The collaborative efforts will help Pakistan earn revenue and it is the beginning of a journey toward sustainable bio-economy solutions,” she said.
Mr Muhammad Ijaz Ghani, Senior Joint Secretary, MoCC&EC, described the project as inspirational and socially inclusive. He noted that the project had a potential to contribute to Pakistan’s largest export sector – textiles.
He underscored the importance of addressing pollution and resource depletion while appreciating SMEDA’s leadership in advancing climate-friendly initiatives aligned with national priorities. He said projects like this were a great source of promoting the circular economy.
He said the Ministry of Climate Change and Economic Coordination had taken several initiatives to fight the adverse effects of climate change. He said there was a need to share perspectives and insights to achieve the economic objectives.
Dr Julius, FAO Programme Coordinator and Provincial Head Sindh, emphasized Sindh’s central role as the “epicenter of Pakistan’s banana economy”. He expressed concern over water intensity and post-harvest losses, with nearly 16% of bananas going waste.
He stressed the need for further research and ensuring that the voice of farmers remained central to project design and implementation.
Sharing his insights, Mr Habibur Rehman (NTU-FAO) presented the FAO project framework and explained that the initiative seeks to reduce Pakistan’s dependence on imported cotton while addressing pollution caused by agricultural waste.
He identified key barriers such as regulatory gaps, limited finance, weak institutional coordination and value-chain gaps. He stated that the project’s core objective was to accelerate Pakistan’s bio-economy by converting banana waste into fibre.
During the workshop, Sheharbano, a seller of banana fibre products, shared her experience and expressed gratitude for SMEDA for providing support and a platform to showcase her products.
She said the initiative had enabled her to earn a livelihood and motivated her to dedicate herself to promoting banana fibre products as a contribution to Pakistan’s economic progress.
The session concluded with an interactive Q&A and panel discussion, allowing stakeholders to exchange perspectives and insights on implementation, scalability and market access.
In his closing address, Mr Ashfaq Ahmed, GM Microenterprise, SMEDA, described the project as a landmark collaboration between SMEDA and FAO. He commended the participants for their valuable inputs which would help ensure effective execution of the project.
He said the project aims to convert banana waste into fibre for textiles and other products, mitigating the adverse effects of pollution. It would also strengthen value chain and create income-generating opportunities for small and medium enterprises of the country, he added.
