The Costs and Benefits of Compliance with International Environmental Standards

This research paper by the Sustainable Development Policy Institute (SDPI) examines the economic and social impacts of complying with international environmental standards on Pakistan's leather and textile export sectors. It analyzes the trade-off between the costs of mitigation and the benefits of market access, identifying 'win-win' scenarios where cleaner production leads to efficiency gains and pollution reduction.

• In the leather sector, in-plant cleaner production (CP) measures in Sialkot demonstrated 'win-win' outcomes, where 16 firms generated net savings of approximately Rs. 9 million, representing about 7.5 per cent of their total capital cost.
• The Kasur Tannery Pollution Control Project (KTPCP) achieved significant environmental gains, including a 99% reduction in suspended solids, 60% reduction in COD, 75% reduction in BOD, 98% reduction in chromium, and 70% reduction in sulphide.
• Land reclamation in Kasur provided a quantifiable economic benefit, with reclaimed land valued at over Rs. 160 million based on a rate of Rs. 400,000 per acre.
• The textile sector is categorized as a 'net-win' because firms face strong internal pressure to comply with product standards to avoid loss of orders, although process standards remain a 'grey area' with evidence of spurious compliance.
• Small and Medium Enterprises (SMEs) are identified as facing 'net losses' due to a lack of information on technology and difficulties in obtaining loans for large capital investments like water treatment plants.
• There is a risk of 'spurious compliance' regarding ISO 14001 certification in Pakistan, where some firms obtain certification despite not being in full compliance with National Environmental Quality Standards (NEQS).
• Pakistan lacks the institutional and technical capacity to independently test and certify compliance with international standards, forcing reliance on expensive foreign testing bodies.
• The study highlights that while product standards are generally accepted, standards based on processing and production methods (PPMs) are often viewed by Southern countries as non-tariff barriers or 'green protectionism'.
• The leather sector in Pakistan is a major polluter, with tanneries contributing approximately 10–15 per cent of the total contamination of Karachi coastal waters.
• The textile industry is a critical part of Pakistan's economy, accounting for 62 per cent of manufacturing exports and 40 per cent of manufacturing employment.

APA

Khan, S. R., Qureshi, M. S., Khan, S. R., & Khwaja, M. A. (2002). The Costs and Benefits of Compliance with International Environmental Standards. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_pakistan_standards.pdf

Chicago

Khan, Shaheen Rafi, Mahvash Saeed Qureshi, Shahrukh Rafi Khan, and Mahmood A. Khwaja. The Costs and Benefits of Compliance with International Environmental Standards. International Institute for Sustainable Development, 2002. https://www.iisd.org/system/files/publications/tkn_pakistan_standards.pdf.

Wikipedia

{{cite report |last1=Khan |first1=Shaheen Rafi |last2=Qureshi |first2=Mahvash Saeed |last3=Khan |first3=Shahrukh Rafi |last4=Khwaja |first4=Mahmood A. |title=The Costs and Benefits of Compliance with International Environmental Standards |publisher=International Institute for Sustainable Development |date=November 2002 |url=https://www.iisd.org/system/files/publications/tkn_pakistan_standards.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{khan2002costs, author = {Khan, Shaheen Rafi and Qureshi, Mahvash Saeed and Khan, Shahrukh Rafi and Khwaja, Mahmood A.}, title = {{The Costs and Benefits of Compliance with International Environmental Standards}}, institution = {International Institute for Sustainable Development}, year = {2002}, month = nov, url = {https://www.iisd.org/system/files/publications/tkn_pakistan_standards.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }