Industrial water reuse is emerging as a practical pathway for Bangladesh’s textile industry to reduce freshwater demand while sustaining economic growth. Photo: Adobe Stock.
Bangladesh's ready-made garments sector is one of the world's great industrial success stories. Accounting for nearly 80% of national exports, it is also the country's largest source of industrial water pollution. That dual reality places water reuse at the center of the sector’s long-term competitiveness, not simply as an environmental concern, but as an economic one.
In Greater Dhaka alone, an estimated 5.3 million cubic meters of wastewater are generated every day, nearly 70% of it from water‑intensive processing industries. The region produces about 40% of national GDP, hosts more than 5,000 factories, and is home to nearly 20 million people. Sustaining industrial growth while safeguarding water security is now an economic imperative.
For decades, the prevailing model has been linear where water is abstracted from rivers and aquifers, used in production, treated, and discharged back into the environment. Treatment has improved, but rising demand, heavier pollution loads, and growing water stress are exposing the limits of this approach. Attention is shifting toward systems in which reuse is designed into the system from the outset, rather than treated as an end‑of‑pipe add‑on.
A National Alliance Takes Shape
A major step in this transition came with the formation of the Alliance for Water Reuse and Recycling (A4R) in Bangladesh, officially launched in May 2025. Convened with support from the World Bank Group’s 2030 Water Resources Group, the alliance brings together government ministries, industry, development partners, and global textile brands.
Its ambition is clear: reduce total wastewater generation in the Greater Dhaka watershed by 20% by reusing and recycling roughly 350 million cubic meters of water each year. The alliance reflects a shared recognition that neither regulation nor market incentives alone can deliver change at the scale and speed required.
Demonstrating Reuse in Practice
The Alliance for Water Reuse and Recycling (A4R) is upgrading Fakir Knitwear’s effluent treatment plant, showing how public private collaboration can reduce industrial wastewater. Photo: World Bank Group.
The alliance’s objectives are now being tested at the factory level. A public‑private partnership with Fakir Knitwears represents a total investment of US$1.7 million, including US$0.6 million from UNCTAD’s Sustainable Manufacturing and Environmental Pollution Programme, with the remainder financed by the factory. Partners include Primark, H&M, WaterAid, Grundfos, Panta Rei, and 2030 Water Resources Group.
The investment upgrades the factory’s effluent treatment plant and enables the reuse of 438,000 cubic meters of treated water each year. More than 22% of total effluent—around 1.2 million liters per day—is now returned to production, with a target of 25% reuse as the next milestone. A one‑year payback period underscores the project’s financial viability, and national accreditation has validated both its technical performance and financial design.
Crucially, the project shows that water reuse in the textile sector can move beyond corporate sustainability commitments to become a commercially viable, replicable business practice.
Putting Systems in Place
Attention is now shifting from pilots to institutionalization. In collaboration with the Ministry of Water Resources, work is underway to develop an integrated water information system linked to the national water resources database. The platform will connect businesses, government agencies, investors, development partners, and technology providers, while establishing a transparent framework for tracking water quality and reuse performance.
In parallel, a regulatory framework is being developed to set factory‑level reuse and recycling targets. To support implementation, a Special Purpose Vehicle under the Ministry of Water Resources is being established to manage a Common Implementation Fund, backed by a Technical Facilitation Unit. Together, they will coordinate monitoring, technical assistance, and investor engagement. The fund is expected to blend crowdfunding mechanisms, revolving capital, and concessional finance to help factories invest in reuse and efficiency upgrades.
These efforts are reinforced by the recently approved Metro Dhaka Water Security and Resilience Program, supported by US$370 million in World Bank financing. The program provides a long‑term platform to strengthen wastewater management, regulatory oversight, and inter‑agency coordination across the metropolitan region.
What Will Determine Long-Term Success
Progress has been steady, but two constraints remain decisive: effective institutional coordination and the development of credible, investment‑ready business cases at the factory level. Aligning regulations, data systems, and blended financing instruments will determine how quickly reuse can scale across the industrial base.
With large‑scale financing now mobilized, the challenge is no longer to prove feasibility, but to ensure consistent implementation and sustained private investment. Bangladesh has shown that industrial water reuse can be technically viable, commercially sound, and institutionally achievable. The transition from pilot projects to system‑wide adoption is underway, embedding water reuse within the country’s industrial growth model and its broader water security strategy.
Join the Conversation