The upcoming carbon taxation measures in European Union (EU) countries could indeed pose a challenge for Pakistan’s exports, particularly if the country continues to rely on fossil fuels like coal for electricity production. These measures are part of the EU's broader climate strategy to reduce carbon emissions and encourage the shift toward cleaner energy sources. As carbon taxes increase, industries in countries like Pakistan that are heavily reliant on coal could face higher costs for their products when trying to access the EU market, which might reduce their competitiveness. Carbon taxation in the EU represents a challenge for Pakistan’s exports, it also presents an opportunity to accelerate the transition to renewable energy. An approach that involves affected communities, local governments, and industrialists will be essential in ensuring that Pakistan can meet its climate goals while also ensuring a just transition for those directly impacted by the move away from coal.

Pakistan Railways (PR) is set to construct a 105-kilometer railway line connecting the Thar Coal mines with Port Qasim, with the project expected to be completed by October 2025. This new rail link, stretching from Islam Kot to Chhor, is part of a broader initiative to enhance the country’s bulk transportation capabilities, supporting economic growth and enabling efficient coal transportation nationwide. The project is a joint venture, with financing provided by both the Sindh provincial government and the federal government. Once completed, the railway line will play a crucial role in transporting coal to various parts of Pakistan, facilitating industries like cement and textiles by providing them with a more cost-effective fuel alternative. This development objects to improve the overall energy and transportation infrastructure, making it easier and cheaper to move coal from the Thar region to key industrial hubs, such as those around Port Qasim.

Pakistan’s transition to electric vehicles (EVs) represents a step towards sustainable greener transportation but poses serious financial challenges, especially for road infrastructure funding. Currently, over 80% of Pakistan’s road user revenues are derived from fuel taxes approximately $5.68 billion annually. This critical revenue source is expected to shrink substantially, potentially covering only 35% of road maintenance costs. The decline in fuel consumption could lead to a gradual decline for the country’s energy sector. The National Electric Vehicle Policy (2021) aims to electrify 30% of cars and 50% of two- and three-wheelers by 2030, driving a shift towards greener transportation options. The transition could be hindered without sufficient charging infrastructure and with limitations in the electricity network.

The growing importance of Liquefied Petroleum Gas (LPG) in Pakistan’s energy mix has become a significant point of focus, with its share doubling from 1.0% to 2.0%. This increase highlights the expanding role of LPG as a fuel source in the country, and forecasts suggest this trend will continue. Pakistan needs to modernize its infrastructure as demand for LPG grows. There is an urgent need to enhance infrastructure and regulatory frameworks to ensure the sector’s long-term sustainability and safety, including manufacturing facilities and establishing a robust regulatory framework must be developed to ensure for safe storage of LPG, as well as for the transportation and distribution of the gas with fairness, and efficiency throughout the supply chain.

Under the facilitation of the Special Investment Facilitation Council (SIFC), Pakistan has made a rise in agricultural exports with the successful shipment of its first consignment of berry honey to Malaysia. This milestone highlights Pakistan's growing role as a reliable supplier of honey on the global stage while boosting economic growth in the region. A crucial role in fostering business connections between Pakistani and Malaysian enterprises has been played The Pakistan High Commission in Kuala Lumpur, ensuring smooth trade relations. The Khyber Pakhtunkhwa region, a key hub for honey production in Pakistan, contributes 20,000 tons of honey annually from over 60,000 honey farms, providing employment to approximately 1.6 million people. The region's infrastructure includes well-established bee clusters and processing facilities that support the thriving honey industry. Consultations with industry experts are underway to explore investment opportunities in bee clusters and processing capabilities to further develop this sector. "Honey Board", the dedicated institution is being considered to streamline and enhance the industry's export potential.