Pakistani producers are not subject to the Supply Chain Due Diligence Act (LkSG) introduced in Germany, but their customers in Germany are. However, if they want to enter into supply relationships with Germany, Pakistani suppliers must provide customers with proof that they meet the requirements. In this respect, they are also affected by the law. Compliance with due diligence obligations in the supply chain is also pursued in the Corporate Sustainability Due Diligence Directive (CSDDD), which was passed in May 2024 and is to be implemented by Germany by mid-2026. The CSDDD is part of the "EU Green Deal", which also includes the Corporate Sustainability Reporting Directive, which came into force on January 1, 2025.
The LkSG and the Green Deal particularly concern the management of companies. In order to bring about improvements in due diligence obligations in companies, intensive advice and support is required. Through the BMO partnership (KVP) between the German importers association Verband der Fertigwarenimporteure (VFI) and Pakistani textile associations, Pakistani companies receive guidance through their associations on how to proof compliance with due diligence obligations for their part of the supply chain. To this end, advisors of the associations will be trained and coached by VFI in order to support companies in the process of adopting their management systems and document the results. Advisors will first be trained and then coached by VFI while they provide professional support to companies. In addition, the associations will receive input on how to position themselves for dialogue with various stakeholders on the topic (members, governments, NGOs, other associations, buyers, etc.). The project began in January 2025, will run for two years and is funded by the German Federal Ministry for Economic Cooperation and Development as part of the Partners in Transformation programme.
