Energy Crisis and Pakistan Textile Mills
Impact of Electricity Crisis and Interest Rate on Textile
Industry of Pakistan
Hafiz Muhammad Yaseen Afzal
Punjab Group of Colleges, Daska, Pakistan
Abstract
The aim of this study is to estimate the impact of electricity crisis and interest rate on the production of Pakistan textile industry. The Pakistan textile industry contributes more than 60 percent of total export and largest manufacturing sector of Pakistan’s industry. This sector faces crises of electricity and interest rate due to which its growth decreases. This study estimates the relationship between the production of textile, electricity crises and interest rate. In order to check the impact of electricity crises and interest rate on the production of textile industry, multiple regression analysis is used upon the 11 years data of electricity, interest rate and textile industry. After investigation it was found that the Pakistan’s textile industry negatively affected by electricity crisis and interest rate.
The textile industry can once again be brought back on attractive track if government takes serious measures in removing the electricity crisis and normalizing the supply of electricity to the textile industry for increasing the textile growth of the country.
Keywords: Textile industry; Exports; Electricity crisis; Interest rate; Production;
Paper type: Research paper
Introduction
However, its availability is not unlimited. Electricity crisis, as well as high cost of fuels disturbs the proper supply of electricity. The textile industry uses the 38 percent of electricity in chemical processing 34 percent in spinning,
23 percent in weaving, and 5 percent for other miscellaneous purposes.
Pakistan has 60 MW of power generating capacity for 31.5 million people in 1947, and this was extended to 119 MW by 1959, just as the country was entering a period of development that required consistent infrastructure. In 1952 the government acquired a majority shareholding of the
Industry of Pakistan
Hafiz Muhammad Yaseen Afzal
Punjab Group of Colleges, Daska, Pakistan
Abstract
The aim of this study is to estimate the impact of electricity crisis and interest rate on the production of Pakistan textile industry. The Pakistan textile industry contributes more than 60 percent of total export and largest manufacturing sector of Pakistan’s industry. This sector faces crises of electricity and interest rate due to which its growth decreases. This study estimates the relationship between the production of textile, electricity crises and interest rate. In order to check the impact of electricity crises and interest rate on the production of textile industry, multiple regression analysis is used upon the 11 years data of electricity, interest rate and textile industry. After investigation it was found that the Pakistan’s textile industry negatively affected by electricity crisis and interest rate.
The textile industry can once again be brought back on attractive track if government takes serious measures in removing the electricity crisis and normalizing the supply of electricity to the textile industry for increasing the textile growth of the country.
Keywords: Textile industry; Exports; Electricity crisis; Interest rate; Production;
Paper type: Research paper
Introduction
However, its availability is not unlimited. Electricity crisis, as well as high cost of fuels disturbs the proper supply of electricity. The textile industry uses the 38 percent of electricity in chemical processing 34 percent in spinning,
23 percent in weaving, and 5 percent for other miscellaneous purposes.
Pakistan has 60 MW of power generating capacity for 31.5 million people in 1947, and this was extended to 119 MW by 1959, just as the country was entering a period of development that required consistent infrastructure. In 1952 the government acquired a majority shareholding of the
References: Research Journal of International Studies - Issue 14 (May, 2010) 21-29 APTMA (2010). All Pakistan Textile Mills Association, Annual Report (Various Issues). Pakistan, Government of (2009-10) Pakistan Economic Survey Shibata, H. (1983). The energy crises and Japanese response, Copyright © 1983 Published M. (2007). Fueling the Future: Meeting Pakistan’s Energy Needs In The 21st Century. International Energy Agency (2009). Energy Prices & Taxes Textile Industry Special Report (2010)