CBAM trade barriers

According to Dawn (Pakistan), the European Union's carbon border adjustment mechanism has been in effect since January twenty twenty-six, requiring importers of steel, cement, aluminium, fertilisers and electricity to buy certificates for embedded carbon. The column argues that while Pakistan's direct exposure is small — about one point two percent of exports — the real risk lies in textiles, concentrated in Faisalabad, Lahore and Karachi. Pakistan's existing carbon levies don't qualify for a deduction because they aren't earmarked or product-linked, so the cost would be paid twice. The writer warns that by September twenty twenty-seven, Pakistan will face an EU invoice unless it builds a credible domestic carbon pricing system.

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