EFFECTS ON TEXTILE EFFECTS ON TEXTILE INDUSTRY DUE INDUSTRY DUE

TO TO

ENERGY CRISISENERGY CRISIS

Introduction of textile Introduction of textile industry industry

Pakistan is the Pakistan is the 8th largest exporter8th largest exporter of of textile productstextile products

The Pakistan textile industry contributes The Pakistan textile industry contributes more than more than 60 percent60 percent to the country’s to the country’s total exportstotal exports i.e. $ 9.6 billion. i.e. $ 9.6 billion.

The industry contributes approximately The industry contributes approximately 46 percent46 percent to the total output produced to the total output produced in the countryin the country

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It provides employment to It provides employment to 38 38 percentpercent of the work force of the work force

The contribution of this industry to The contribution of this industry to the total GDP is the total GDP is 8.5 percent8.5 percent

History of Textile History of Textile IndustryIndustry

Since 1947, bales increased from 1.1 Since 1947, bales increased from 1.1 million bales to 10 million bales by million bales to 10 million bales by 2006.2006.

Number of mills increased from 3 to 600 Number of mills increased from 3 to 600 Number of spindles increased from Number of spindles increased from

about 177,000 to 805 million about 177,000 to 805 million Pakistan registered a growth rate of Pakistan registered a growth rate of

101% per annum in yarn production101% per annum in yarn production from 1993 to 1998.from 1993 to 1998.

Effects of Energy crisis on Effects of Energy crisis on textile sectortextile sector

Energy crisis includes shortage of both electricity Energy crisis includes shortage of both electricity and natural gasand natural gas

The textile production capacity of various sub-The textile production capacity of various sub-sectors has been reduced by up to 30 percentsectors has been reduced by up to 30 percent..

The cost of production has also risen due to instant The cost of production has also risen due to instant increase in electricity tariffincrease in electricity tariff and the use of and the use of alternative resources e.g. Diesel generators.alternative resources e.g. Diesel generators.

Approximately 60-70% of industry has been Approximately 60-70% of industry has been severely affected, facing a loss of over PKR 1 severely affected, facing a loss of over PKR 1 billion daily.billion daily.

Difference between demand Difference between demand and supply of Electricityand supply of Electricity

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Thousands of textile workers have Thousands of textile workers have become unemployed and thousands become unemployed and thousands more are waiting for the same in more are waiting for the same in near future if the crisis continues.near future if the crisis continues.

This unemployment will certainly hit This unemployment will certainly hit the already trembling economy of the already trembling economy of the country.the country.

Law and order situation can go even Law and order situation can go even worse.worse.

RecommendationsRecommendations Alternate energy resources should be used Alternate energy resources should be used

to overcome the energy crisis, e.g. solar, to overcome the energy crisis, e.g. solar, wind, tidal, bio gas plants, nuclear, coal etc.wind, tidal, bio gas plants, nuclear, coal etc.

Subsidy should be given on Electricity and Subsidy should be given on Electricity and Gas tariffs to save this major industry.Gas tariffs to save this major industry.

Energy crisis must be taken seriously and Energy crisis must be taken seriously and all the possible resources should be used all the possible resources should be used and measures should be taken to overcome and measures should be taken to overcome this problem.this problem.