Read ahead (Choose a chapter and start with that many lore counters. Add one after your draw step. Skipped chapters don't trigger. Sacrifice after III.)
I.-II. Another target nonland permanent phases out. It can't phase in for as long as you control The Phasing of Zhalfir.
III. Destroy all creatures. For each creature destroyed this way, its controller creates a 2/2 black Phyrexian creature token.