Karachi: Mian Zahid Hussain, a prominent figure in Pakistan's business community, has emphasized the necessity for swift policy changes to ensure the survival of the country's export sector. According to Pakistan Businessmen and Intellectuals Forum, Hussain highlighted two critical measures: the implementation of "Green Grid" certification for industrial estates to counter European carbon taxes, and the exploitation of the deregulated sugar sector to boost bio-energy exports. Addressing the business community, he warned that despite the EU's Carbon Border Adjustment Mechanism (CBAM) being in a transitional phase, European buyers are already demanding "Carbon Passports" from Pakistani suppliers. This demand poses a challenge as Pakistan's reliance on fossil fuels results in high carbon-intensity scores, making its exports less competitive compared to those from Vietnam and Bangladesh.
Hussain suggested that the Ministry of Energy should designate certain industrial areas in Karachi, Faisalabad, and Sialkot as "Green Energy Zones." He proposed that by certifying these areas as being powered by renewable energy, thousands of small and medium enterprises could claim near-zero emissions without the need for costly individual solar installations. He stressed that without this certification, Pakistan's textile industry risks losing its edge, as forthcoming carbon levies will negate the benefits of GSP Plus status.
In addition, Hussain praised the government's decision to fully deregulate the sugar sector by June 2026. He described this move as a significant reform that could lead to an industrial expansion, particularly in the production of fuel-grade ethanol. With the deregulation, the industry can potentially generate over $1 billion in ethanol exports annually and contribute to the national energy mix through bio-power generation.
Hussain urged the government to treat sugar deregulation as both an agricultural and industrial strategy. He noted that Brazil and India have successfully leveraged deregulated sugar sectors to advance their transport industries and reduce oil imports, a strategy Pakistan should emulate. He concluded that by securing "Green Grid" certification for traditional textile exports and facilitating the ethanol industry's growth, Pakistan could transition from economic stabilization to a high-growth export trajectory in the coming year.