KARACHI
\nMian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, said today that while the government\u2019s accelerated privatization drive is a commendable step toward economic stabilization, the country\u2019s industrial base faces an immediate and severe challenge from the European Union\u2019s newly implemented carbon regulations. Speaking to the business community, he welcomed the Privatization Commission\u2019s decision to issue Expressions of Interest for the profitable power distribution companies IESCO, FESCO, and GEPCO this month, noting that this move will finally stem the hemorrhaging of national resources.
\nMian Zahid Hussain said that the reported interest from foreign consortiums, particularly Turkish investors advised by Raiffeisen Investment, validates the improved investment climate in Pakistan. He added that expanding the privatization active list to include Saindak Metals, Pakistan Mineral Development Corporation, and the National Insurance Company Limited is a strategic decision that will unlock the true potential of these underperforming assets. However, he cautioned that these gains could be neutralized if the country\u2019s export sector fails to adapt to the \u201cdefinitive regime\u201d of the EU\u2019s Carbon Border Adjustment Mechanism (CBAM), which officially came into force on January 1, 2026.
\nThe veteran business leader warned that while the privatization of DISCOs will improve energy management in the long run, Karachi\u2019s exporters are facing an immediate crisis today. European buyers have effectively begun demanding \u201cCarbon Passports\u201d from Pakistani suppliers to future-proof their supply chains against the new levies. He highlighted that Karachi\u2019s industrial hubs, including Korangi and SITE, are particularly vulnerable because many units rely on captive power generation using gas or furnace oil. Under the new EU rules, these energy sources carry a high \u201ccarbon intensity\u201d rating, which could make Pakistani goods prohibitively expensive compared to competitors in Vietnam or Bangladesh who utilize greener grid electricity.
\nMian Zahid Hussain proposed an urgent solution, calling on the Ministry of Energy and K-Electric to immediately designate specific industrial feeders as \u201cGreen Energy Zones.\u201d He explained that by certifying that electricity supplied to these zones comes from renewable sources like hydro, wind, or solar, the government can allow exporters to claim near-zero emissions for their products without needing to install individual solar plants. He stressed that without verified emission data, EU authorities will apply punitive \u201cdefault values\u201d to Pakistani exports, which would be disastrous for the textile and manufacturing sectors.
\nHe concluded that while shedding state-owned losses through privatization is essential for fiscal health, protecting the export lifeline requires immediate regulatory innovation. He urged the government to prioritize the \u201cGreen Grid\u201d certification to ensure that Pakistan\u2019s hard-won export orders are not lost to carbon taxes in the European market.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, said today that while the government\u2019s accelerated privatization drive is a commendable step toward economic stabilization, the country\u2019s industrial base faces an immediate and […]<\/p>\n","protected":false},"author":2,"featured_media":466256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-523987","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n