A prominent business leader warned on Friday that Pakistan”s export sector faces an existential threat from impending European Union carbon levies, urging the government to immediately introduce “Green Grid” certification to safeguard international trade.
Speaking to the business community, Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, stated that European buyers are already demanding “Carbon Passports” from local suppliers, even though the EU”s Carbon Border Adjustment Mechanism (CBAM) is still in its transitional phase for textiles.
He highlighted that Pakistan”s heavy reliance on a fossil-fuel-based national grid results in exporters being assigned high carbon-intensity scores. This puts their products at a significant competitive disadvantage against rivals from nations like Vietnam and Bangladesh.
To counter this, Hussain proposed a practical solution for the Ministry of Energy: designate specific industrial feeders in Karachi, Faisalabad, and Sialkot as “Green Energy Zones.”
This certification would legally affirm that electricity supplied to these dedicated industrial lines originates from renewable sources such as hydel, wind, or solar power. He explained this would enable thousands of small and medium-sized enterprises (SMEs) to claim near-zero emissions for their manufacturing processes without incurring the high cost of installing individual solar plants.
The veteran business leader cautioned that without this “Green Grid” certification, the upcoming carbon taxes will effectively neutralise the trade advantages Pakistan currently enjoys under its GSP Plus status.
In a separate but related matter, Mian Zahid Hussain warmly welcomed the administration”s decision to fully deregulate the sugar sector by June 2026, describing it as a long-overdue reform that could unlock a new industrial frontier for the nation.
He noted that the policy shift clears the path for a massive expansion in the production of fuel-grade ethanol. With the removal of export quotas and price controls, the industry could now leverage surplus molasses and sugarcane bagasse to generate over $1 billion in annual ethanol exports.
Hussain advised policymakers to view sugar deregulation not merely as an agricultural policy but as a strategic industrial energy initiative. He pointed to countries like Brazil and India, which have successfully used their sugar sectors to develop bio-energy, fuel their transport industries, and reduce oil import bills-a model he insists Pakistan must now replicate.
He concluded that the combination of “Green Grid” certification to protect traditional textile exports and the facilitation of a new ethanol industry could pivot the country”s economy from a stabilisation mode to a high-growth export trajectory this year.