“Independent Study”

Impact of Energy Crises on Textile Industries of Pakistan:

A case study of Energy crises in Pakistan

By:

Mr. Mohammad Waqar Razzaq

Mr. S.M. Raza Ali Rizvi

Ms. Sidra Fareed

Supervised By:

Mr. Shoaib Ahmed

Date of Submission:

8th April, 2014

Institute of Business and Technology (IBT) P.E.C.H.S, Shahrah-e-Faisal, Karachi

pg. 1

LETTER OF ACKNOWLEDGEMENT

All praise goes to Almighty Allah, the most beneficent and the most merciful, gave us strength to

compile a Report on “Impact of Energy crises on Textile Industries of Pakistan”.

First, we are very thankful to our respected supervisor, Mr. Shoaib Ahmed. He was very much helpful

and co-operative in the whole research making process, without his support we could not compile this

report completely. He helped us by providing proper guidance to us related to the topic. When we

were working on research, his professionalism and support towards us was really appreciable. He

provided us all required information during this research.

We will highly appreciate for his suggestions for improvement in this Research; we also appreciate

our instructor’s recommendations and comments on its contents. After finalization of research, we

also welcome those recommendations comes from our companions and well-wishers as we strongly

believe that nothing is perfect in this world being human, we all are error prone, many factors may left

in our research but there is always a room for improvement or change in it.

Furthermore, we would like to thanks IBT for providing us an opportunity to work on such research in

a group form, where we utilized our interpersonal skills and learnt necessary theories related to our

topic as well as our personal vision and knowledge improved very much after the research.

pg. 2

LETTER OF TRANSMITTAL

08th April, 2014

Ms. Sumiyya Lakhani

Coordinator MBA Program,

IBT, EDC Campus,

Karachi.

Acting in accordance with the revised directions, this research conducted on the topic named “Impact

of Energy crises on Textile Industries of Pakistan” submitted here.

The purpose of our research is to identify that how textile business affected due to the continuous

energy crises directly hit the whole textile industry sector of Pakistan.

In this report we tried to cover up most important factors caused by energy crises and our main

research theme based on these prolonged crises with effect on our Gross Domestic Product (GDP),

Unemployment and Exports, where orders cancelled on daily basis due to the consignments could not

ready on time because of no power generation, related to this many other problems currently faced by

this industry listing high power tariff duties, high generator and fuel expenses due to operations

running through generators, poor law and order situation causing no foreign investment as well as

foreigners visitors With these major problems; extortions and strong mafias in big cities causing

liquidation or transfer of textile business, etc.

Though we have tried our best to make this report according to the true facts and figures that we

collect from many different sources as much as possible, but still being humans we are error prone, so

we expect you to forgive us for the mistakes we did in it. We hope you will appreciate our efforts.

Sincerely,

____________ _____________ ____________S.M. Raza Ali Waqar Razzaq Sidra FareedBME-1582 BME-1630 BEM-1175

pg. 3

Impact of Energy Crises on Textile Industries of Pakistan:

A case study of Energy crises in Pakistan

Table of Content

Topic

S.no

1. Introduction

1.1 Background Study

1.2 Significance of Study

1.3 Problem Statement

1.4 Objective of Study

1.5 Scope of the study

1.6 Limitations

2. Research Methodology and Procedures

2.1 Research Design

2.2 Research Methodology

2.3 Samples and Sampling Technique

2.4 Research Instrument

2.5 Treatment of Data

2.6 Presentation Analysis

3. Literature Review

3.1 At a Glance in Energy Sector

3.2 Unemployment measures

3.3 The Economic Value of GDP

3.4 Exports and Market Growth

3.5 Conceptual Framework

3.6 Hypothesis

4. Data Analysis and Presentations

5. Findings and interpretations

pg. 4

6. Conclusions and Recommendations

7. Area of further study

Anti-Plagiarism Declaration Form

Declaration:

We certify that this is our own research work. The work has not, in whole or in part, been presented

elsewhere for assessment. Where material has been used from other sources, it has been properly

acknowledged. If this statement is untrue and if I am found guilty of the plagiarism, the punitive

actions against me are taken as per the IBT Anti Plagiarism Policy.

S. M. Raza Ali Rizvi Sidra FareedRegistration No: BME-1514 Registration No: BEM-1175Program: MBA Finance Program: MBA Marketing

_________ _________Signature Signature

Waqar RazzaqRegistration No: BME-1630 Program: MBA Finance

_________Signature

pg. 5

1. INTRODUCTION AND BACKGROUND

1.1 Background of the study:

Energy policy is formulated by federal and provincial government in Pakistan, where they

address the issues related to power generation, distribution and consumption of energy by

developing strategies to formulate policies. After the separation from India, a large

infrastructure of electricity was input by the Pakistani Military in 1960 by funds provided by

international monetary sources and various other sources. Most of energy produced by thermal

projects at the time of separation and after that for a long time country’s major dependency

was on thermal power and then lately Hydel power added in the power system. It further

expanded through Pakistan’s first nuclear power plant established in Karachi during 1970’s.

In the era of Government ruling by Pakistan People’s Party (PPP), Prime Minister Mohtarma

Benazir Bhutto launched country’s first and largest energy conservation program for 13,000

Megawatt of electricity production by issuance of 70 Memorandum of understandings

(MOU’s) and letter of Intent to Independent Power Producers (IPP’s). This energy policy puts

a diverse effect on our energy sector as rental power projects put an ultimate negative effect on

country’s power generation process as well as heavy burden on our economy due to the

involvement of complete corruption factors in it.

As we all know, that Pakistan’s Textile industry depends on a non-stop energy supply. As an

agricultural economy, its main crop is cotton where Textile Centre is in Punjab where all major

activities of the industry carries out there continuously, non-stop working all the day and night.

This textile business includes; cotton spinning, hosiery, sizing, dyeing, yarn, fiber and all other

linked industries that are getting effect mainly by power shutoffs, economical breakthroughs,

major change in foreign policies, change in cultural values, security conditions as well as a

large impact by public prosperity and wealth. We focused that how our textile sector goes

toward shutdown or negative market as well as decline in the business and we evaluate that

sufficient power not supplied properly to the Punjab region as well as other areas. When

industry face power shortage, it could not get purchase orders from foreign markets cause

customer reduction, foreign exchange deduction, increase in inflation, GDP decreased and

unemployment ratio move to all-time higher level. In November 2013, Textile exports are

about 58 percent of our total exports among which we figured a sum of 13 Billion dollar. The

entire situation discussed above shows that textile sector with 63 percent of Pakistan’s exports

shifting to other countries due to tough business conditions created in Pakistan because of poor pg. 6

governance and lack of planning and research in the energy sector. (Farhan Aziz). It would

definitely impact on our GDP, currency, exports economy as you can say the whole nation gets

affected. The textile industry exports contribute about Nine percent of the Gross Domestic

Product (GDP) Mr. Sartaj Aziz (Economist).

Unemployment:

Unemployment generates when people found jobless in a society or in a particular region, but

actively seeking for employment. Energy crises move a huge labour force towards

unemployment in our country. Textile mills are employing more than 20 percent of the

nation’s workforce and 46 percent of the total labour force of the manufacturing sector where

Faisalabad generates the most tax revenue after Karachi that is the main center of Textiles in

Pakistan. The labour working in textile units, started their day from long and continuous

operations, work together on each workplace, lunch together, form a mutual environment of a

cooperative community of all labour class where they share their issues and hang around with

each other till the late evening and that is the routine of Pakistani labour class practiced from

the years. Now Pakistan stuck between its energy crises and unemployment problem based on

these temporary based crises. Country’s worst energy crises effect brutally on its workforce

employed mostly in textile mills. A process of firing employees from many business sectors

continuously effects on social and economic values of the workforce due to power crises most

of the time for the industries in Punjab Province then mill owners have no option to fire the

employees and shut their business unit off.

Exports:

Pakistan’s Textile industry total export is around 10.2 billion US dollars comprising of 52

percent of total exports, it also represents the principal employment-generating revenue in the

organized and large scale industrial segment. Pakistan has lost the major part of exports due to

electricity shortage and law and order situations. Pakistan has lost the major part of exports

due to electricity shortage and law and order situations. Textile exports in 1999 were $5.2

billion and rose to become $10.5 billion by 2007. Textile exports managed to increase at a very

decent growth of 16% in 2006. In the period July 2007 – June 2008, textile exports were

US$10.62 billion. Textile exports share in total export of Pakistan has declined from 67% in

1997 to 55% in 2008. It is apparent from the fact that the textile exports contributed 50%

of the country’s total exports in 2012.

pg. 7

Gross Domestic Product (GDP):

GDP is the total of market value of all finished goods and services in a country for a given

period, equal to total consumer, investment and government spending, plus the value of

exports minus the value of import. Pakistan's industrial sector accounts for about 24% of the

total GDP. Textile and apparel production manufacturing are Pakistan's largest industries,

accounting for about 66% of the merchandise exports.

1.2 Significance of the Study:

This research identifies the factors effect on textile industry decline in Pakistan that includes

decline in Exports as well as GDP and higher unemployment ratio in the country. This

research also analyzes the importance, productivity and performance of Textile Industry where

we analyze the difference examine by comparison of data, facts and analysis.

1.3 Problem Statement:

This research analyzes the important problems of textile industry in Pakistan and the factors

which impact badly on its performance that are caused to Unemployment, GDP growth and

exports of textile industry of Pakistan. It causes reduction in productivity of industry as we did

not seen any regular growth in our textile due to the crises faced by the industry that is against

the trends followed by the textile with concern to GDP growth, unemployment and exports.

We also identify the factors for betterment of these conditions as in future; these crises would

cause huge problems for the country.

1.4 Objective of the Study:

The main objectives of our research are:

Macro Objectives

The textile industry of Pakistan plays an important role in earning foreign exchange, providing

employment to the country. Textile sector is back bone of Pakistani economy in our report we

will emphasize that how energy crises impacts textile industry of Pakistan, its intensity as well

as conditions before and after the severity of conditions gone worse which directly hit to

country’s overall economic conditions because of the variables identify in hypothesis.

pg. 8

To identify the determinants of shifting of textile industry and impact to, economic

contribution, national income, economic stability, improvement in balance of payment,

employment opportunities, diversification of Economy.

Micro Objectives:

Below are the micro objectives of this study.

To determine how energy crisis contribute in decreasing the export of Pakistan in terms of

textile.

To determine how energy crisis contribute in increasing the unemployment in Pakistan

To determine how energy crisis contribute in decreasing the GDP of Pakistan in terms of

textile.

1.5 Scope of the Study:

Scope of this study restricted to impact of energy crises in Pakistan’s Textile Sector. The

factors which are directly affected by current energy crises are our Export that goes on

declining, Gross Domestic Product and Unemployment that goes to the higher level. All the

aforementioned factors are the main problems caused by worst energy crises for the nation.

Many projects started by the former and present Governments of Pakistan but the target is to

cover the crises within two to three years as Pakistan continuously facing huge loss from

economic aspect.

1.6 Limitations

The following limitations are to be considered during research:

Data confidentiality policy in textile industries would be a limitation in many cases while

collecting data in different cities.

As we have some concerns on broadness of research area and time constraint, we take the

small sample size.

pg. 9

Interviews, practical experiences and meeting with company staff at different locations are not

possible due to financial limitations so we just focus on some areas within the country such as

Karachi, Hyderabad and Nuriabad in Sindh and personally visited Faisalabad, Lahore and

Multan Industrial sites.

The collection of data is limited due to broadness of research so we restricted it from 2009 to

the year 2013.

2. RESEARCH METHODOLOGY AND PROCEDURES

2.1 Research Design:

The research is intended to analyze the Textile Sector’s potential of productivity and

investment, more specifically the capacity to generate revenues for the Government of

Pakistan in the form of Taxes. The study highlights the economic effects of the textile industry

in the country as a whole. Our research design consists of both quantitative and qualitative

analysis and therefore data has been collected through both secondary and primary sources.

The study is mainly based on literature review which include references from various books,

researches and articles relevant to the subject have been perused and companies selected for

conducting interviews with their management and survey through questioners and personal

visits with addition of help from research journals, news articles etc., after all thorough thesis

is presented here afterward careful analysis thorough statistical tools to determine the

relationship of factors which impact on performance and productivity of the textile industry of

Pakistan.

2.2 Research Methodology:

Our research is very conclusive based on Quantitative and qualitative both analyses identify

cause and relationship between energy crises and our textile industry of the country. Due to

these energy based crises; our export, GDP and unemployment level gradually increases. Our

research variables in this research (export, GDP and unemployment level) are validating

through literature review. Three hypotheses are derived by Export, GDP and Unemployment

situation in Pakistan which are described in conceptual framework.

2.3 Samples and Sampling Technique pg. 10

We will take the sample of our research study belongs to textile companies of Karachi. In

Karachi we will focus on fifteen textile companies named as Gul Ahmed, Nishat Mills, Artistic

Denim Mills, Ahmed Oriental, Tata, Island, Salfi, Naveena Industries, Nina Industries, QST,

Naveena Exports, Interloop, Feroz and Soorty Textile Mills. Sampling technique of our

research is based on convenience sampling for questionnaire filling. Questionnaire will be

filled by the following designations of the sample companies.

- Directors

- Senior Managers

- Managers

- Assistant Managers

2.4 Research Instrument

The data for the research will be collected through the primary and secondary both sources.

For Primary Data Collection:

- Questionnaire crafted on Likert scale

- Feedback of Textile Industry Managers mentioned, APTMA (All Pakistan Textile Mills

Association), the Small and Medium Enterprises Development Authority – SMEDA,

Pakistan Credit Rating Agency (PCRA).

For Secondary Data Collection:

- Research Journals and past research papers

- Newspaper articles by renowned journalists and economists.

- Internet

- Reports provided by Government and Private Firms.

2.5 Treatment of Data

Raw data is collected through primary and secondary sources, the data then measured on

quantitative as well as qualitative basis. For measuring the quantitative data we use statistical

tools. For determining the impact of research variables, fifteen textile companies from

different areas of Karachi were selected for analysis. Four hypotheses were statistically tested

pg. 11

with the performance of textile industry in Pakistan. Our research focused on how each

variable contribute to the performance of textile industry.

2.6 Presentation Analysis:

The presentation analysis of the textile sector is mainly focus on energy crises and here we try

to minimize or cover the existing and growing energy crises in the country. If we control the

current Energy crises, our risk in the textile business would cover, business activities then

show a positive graph, industry would at boost and the issues related to exports, economy

impact will resolve. Secondly, we try to improve our textile growth so that we buildup

employment and exports in textile sector.

3. Literature Review:

3.1 Energy Sector at a Glance

In 1994, Pakistan has 11,000 Megawatts total capacity of energy installed in its power system,

but due to lack of research and development in this sector, we faced massive energy crises

from the year 2006 when our domestic users are increased about 40 percent same as our

government and private owned power producers where usage of crude oil extend the

maintenance cost as well as production cost of power. Our 60 percent of power generated by

hydroelectric power plants, and 40 percent generated by thermal and nuclear power plants but

this condition was reversed during 2007 reported by economist Sartaj Aziz. Controversially

our dependency on imported crude oil for power generation increased due to low water flow in

rivers in winter season too as we are also facing water crises and this condition going worst

every year. Floodwater falls directly in the sea without any water saving measures that should

be needed every year to overcome these crises, this continuous fault in our energy system is a

result of worst crises held with us.

A part from these crises, another debating issue arises for a repetitive cycle of load shedding of

gas and electricity in every street and corner of the country, conditions getting better after the

new government quick response to build Neelum-Jehlum power project, Pak-Iran gas pipeline,

but still the issue remains as seen during the winter in 2013, when whole Cng sector closed in

Punjab region. For home use public faced gas shortage. It is due to the reason that our past

government did not take measures for these crises since a long time. Many seminars, sittings,

pg. 12

All parties conferences, meetings, energy policies were discussed to implement for yearly,

quarterly and on monthly basis, but due to no measures taken between 1994 to 2004 and the

resultant crises of this gap we are facing today and we will face these crises several years more

for a prosperous life without crises. We noticed that water and power crises must be cover by

current and future project inaugurated and planned, were being operational from 2016 to 2018,

working in process to complete them on desired timeframe.

In Pakistan, energy policies regulates by water and power ministry, Alternative Energy

Development Board (AEDB), National Electric and Power Regulatory Authority (NEPRA)

with cooperation of other local government institutions as well. These institutions are also

responsible for issue licenses for generation, transmission and distribution of electric power;

establish and enforce quality as well as safety standards for operation and ultimate supply of

electric power to consumers, approve investment and power acquisition programs of the utility

companies and determine tariffs for generation, transmission and distribution of electric

power. Current government announced an aggressive energy policy for the country after the

election in 2013. Emergency measures must to be following eminently by the new government

policies announced in its various agendas and meetings during energy conference. (1.

NEPRA).

Other neighboring countries also taken interest previously with government initiating projects

but due to heavy cost and USA opposition and influence in our policies, China and Iran that

offered severally by taking interest in our energy development stopped many times. According

to the Petroleum Minister, Shahid Khakaan Abbasi’s last visit to Tehran and issued an official

statement where he expressed that Iran is willing to contribute in our part of Gas pipe line for

the Pak-Iran Gas Pipeline Project and for this cause Iran will invest $500 million. Government

also set more negotiable price for the project with an Iranian firm named Tadbir Energy. Its

main goal is to provide energy services to local and international customers. China is also

contributing its part of helping Pakistan in its worst crises by offering a loan of $500 million

for our energy sector on low interest. As it is a 4 billion dollar project divided by 2 billion

costs for each side where Iran managed to arrange its own territorial cost of 2 billion only and

our $1 billion arranged by the government, for the rest of the amount Pakistan is seeking for

other sources or aid by other countries. (2. Dawn, Tribune)

As far as the feasibility concerns, many confliction investigated through examine the analysis

on government and Iranian authorities’ statements. Sustainable Development Policy Institute

pg. 13

(SDPI) Chief Engineer and Energy Advisor, Mr. Arshad H. Abbasi told that Pakistan needs to

re-negotiate the prices of Gas as Japan currently purchasing gas from Turkmenistan on 2 times

low rate which Iran offering us a higher one. (3. Arshad H. Abbasi)

A report by Petroleum Ministry highlighted the importance of gas project that if we replace oil

based power generation with gas, it results an annual saving of $2.4 billion. The incremental

impact of this project would be just 20 percent on overall gas basket price if 750 million cubic

feet per day of gas imported. So the government measures the every possible task to overcome

these projects of gas for Pakistan’s energy needs.

3.2 Unemployment

Pakistan ranked 142 in the countries listed with unemployment to the year 2012 data based on

a survey conduct by CIA World Factbook showing a percentage of 5.6% unemployed labour

in the country. It’s not a huge figure to be worried about but the problem arises when we see

that graph of employment decrease as well as unemployment decrease and showing a

difference of double in the figure cause by industrial crises creating a block for a whole sector.

The industrial capital of Pakistan, Faisalabad faced massive energy crises from the year 2009.

Our Textile industry has been gripped in an unspecified power and gas load shedding since

2009 and according to the analysts, there are more than 600 industries units affected by these

crises and the industry moved towards large scale unemployment of nation’s workforce where

4 million people were directly or indirectly attached to the textile manufacturing. Exporters,

industrialists, labour right campaigners and workers protested several times with a strong

united stance to urge the government to provide nonstop power plan for industries as the

power cutoff schedules extend to 2 to 5 days in a week forced closure of industry units,

rendering thousands of workers unemployed (4. Farrukh Shehzad).

For analyzing the deep effect on a common man, we experienced that workers lose their daily

wages move towards the protest route and when government restores gas supply, it becomes

useless due to low gas pressure for the industrial as well as domestic user than another lot of

protesters were here in the streets for their cause. In broader aspect, Pakistan Textile industries

form the Sindh and Punjab region faced 2 billion cubic feet per day (bcfd). While, Pakistan

losing 300 to 500 million cubic feet per day from its line loss that shows a figure of 20 billion

of annual losses to gas companies directly. (5. Rashid Lone).

pg. 14

Similarly the electricity shortage also exceeds to 6,000 Megawatt both of these crises causing

industrial crises leading towards thousands of labour and their families deprived for their basic

needs. It is experienced countrywide that thousands of power looms, textile factories either

shutdown or shifted to other countries like China, Srilanka, India and Bangladesh and the

result is a block between textile production and labour as daily wage or salary based workers

gone jobless. This unemployment move our labour class to act as criminals in the society to

fulfill their basic needs even the qualified, diploma and degree holder experiencing an

worthless life by living hand to mouth while some are involved in small business with least

income or their last chance is to leave the country for any job at any other country in the world.

Almost each and every manufacturing activity had been frozen because of mismanagement by

earlier government and its policies that were unfavorable for country’s overall growth in

textile and energy sector. Lately, labour unions also express their concerns over these

prevailing situations as they highlighting the same situation of cultural instability and poverty

over the country. These energy crises turn into textile industry crises directly effecting 350,000

labours across Punjab (6. Faizan Usmani).

Unemployment rate in the country was dropped to 6.3% of the work force between January to

March, 2013 as compared to October to December, 2012 quarterly rate of 6.5% of workforce

unemployed during the country’s worst energy crises. This deduction in unemployment was

due to new government schemes in services sectors as well as a hiring season in many private

sectors as well as industries. This was a survey conducted by Pakistan Bureau of Statistics

(PBS) named as Labour Force Survey on 8th April, 2013 (12. PBS).

It is also part of the figures that around 400,000 people are unemployed during the year 2011-

2012 because of these prevailing energy crises, due to less energy production in energy sector

and no major recent installment measured in country’s existing power generation. Thar Coal,

Neelum-Jehlum power projects are upcoming projects of the government but at this time we

did not noticed any major improvement in the sector it means we could not face any desirable

change in unemployment ratio (13. Dr. Samar Mubarak).

Besides theses energy crises, the economic and financial crises create more unemployment by

the time passage starting from the year 2009. Unemployment is higher in Pakistan due to

higher growth rate; workplace and jobs opportunities in our all business sectors are limited and

growth less. Economic conditions for involvement of change in monthly basis as our monetary

policy change every month by State Bank of Pakistan subject to change in discount rates,

pg. 15

interest and markup rates. Investors hesitate to invest huge amount as well as a normal

businessman also calculate every possible measure before investment in Pakistan. Due to

poverty, people are overburdened from expenses with low savings. Another unemployment

factor involved our country’s political instability, poor law and order situation, army’s

interference caused to a block in our economic growth as well as enrichment of unemployment

in the country (14. Mohammad Annus).

Indeed, the unemployment is our central problem where many other socio-economic distress,

uncertainty in the market among different business factors that are responsible and relating to

it directly and directly by employment issues. It is due to no planning nor do the industrialists

or the government have any plan for compensation of workers job loss while disturbed law and

order situation from several years also triggered the unemployment in the country. We believe

that strategically Pakistan has the potential to respond to the perils faced by the employment

needs revenue to be spent on improvement of infrastructure (15. Amanullah Bashar).

3.3 The Economic Value of GDP

The main parameters of economic growth are the Gross Domestic Product (GDP) and Gross

National Income (GNI). The GDP refers to the value of total actual output produced in the

whole economy over a period, usually within a year. The calculation of the GDP is done by

either adding up total spending (GDP spending based) or adding up total income (GDP income

based).

The textile industry exports contribute about Nine percent of the total 3.59 percent of Gross

Domestic Product (GDP) till the end of 2013 and employs 46 percent of the total labor force of

the manufacturing sector. Textile exports are about 58 percent of the total exports from

Pakistan. Pakistan lies among one of the largest textile producer and exporters in the world,

shipping 1.3 trillion rupees ($13.8 billion) worth of textile products in the year ended June 30,

mostly to the U.S. and Europe. Textiles account for 63 percent of Pakistan’s exports and

textile mills employ 46 percent of the nation’s workforce. Faisalabad generates the most tax

revenue after Karachi due to textile production activities, accounts half of all textiles shipped

from Pakistan. (8. Aftab A. Khan, Mehreen, Pakistan Bureau of Statistics).

However, currently this industry is facing great decline in its growth rate, Pakistan’s $13.8

billion textile industry is struggling to survive a critical shortage of energy to run its plants,

now these textile producers using generators support for their continuous running process to pg. 16

overcome their losses by paying high cost which is then add up in the price resulting

Pakistan’s higher cost products in international markets with the existence of a low cost textile

products of India, China, Japan, Bangladesh and other large textile exporters.

Bangladesh has been offering a lot of incentives, including uninterrupted power supply (at

cheaper rates than in Pakistan), tax-free status for the first 10 years and tariff-free access to

markets in the European Union. These incentives took an offer to convince many Pakistani

businessmen to invest heavily in Bangladesh but now these manufacturers and exporters are

facing critical law and order situation by government because of country discrimination and

relationship from Pakistan. Owner of Tauseef Enterprises, Mr. Salamat Ali for instance, has

already invested Rs. 300 million in setting up a textile factory in Bangladesh. Others like

K&M Textile Mills were considering doing so. Tata Textiles, Naveena Industries already

started their operations from Bangladesh. Every shifting businessman says. “The cost of doing

business in Pakistan is very high, and the textile business is towards decline here but

Bangladesh having a higher risk of life to them, security threat is another factor they are

currently facing.” (8. Khan, Aftab A., Khan Mehreen),

(11. Pakistan Rating Credit Agency).

Pakistan’s economy can be characterized as semi-industrialized. The country’s industrial

sector constitutes 25.1 percent of the country’s gross domestic product (GDP). According to

the Labour Force Survey 2010 to 2011, Pakistan has a labor force of 57.2 million people. As

Pakistan is one of the major producers of cotton, the country has a sound textile industry. It is

apparent from the fact that the textile exports contributed 50 percent of the country’s total

pg. 17

exports in financial year, 2012. Apart from being the mainstay of Pakistan’s exports, the sector

also represents the principal employment-generating avenue in the organized and large scale

industrial segment (8). Moreover, during 2010, Pakistan’s textile and clothing exports

contributed 2.4 percent of the world trade (7. ESP).

In spite of the rates of utilities in Pakistan being higher than competing countries, their tariffs

are increased on regular basis making the industry un-competitive. The cost of production has

also risen due to instant increase in electricity tariff. As a consequence of load-shedding the

textile production capacity of various sub-sectors has been reduced by up to 30 percent which,

along with other consequences, has also reduced the export order. Due to load shedding some

mill owner uses alternative source of energy like generator which increase their cost of

production further. Due to such dramatic situation the capability of competitiveness of this

industry in international market affected badly (9).

A spokesman for the All Pakistan Textile Mills Association (APTMA) claimed that 60 to 70

percent of the industry had been affected and was unable to accept export orders coming in

from around the globe, as a result of gas load shedding (11).

Another jerk has been given to the industry in the form of a “Two-day weekend” for the

conservation of energy. Either adequate energy resources are unavailable to the industry or the

prices of fuel are out of range of the industry. The textile industry being an energy intensive

sector is vulnerable to a higher rate of energy losses across various production processes

resulting in higher energy bills, and productivity losses- all of which have significant financial

impact (7).

3.4 Exports and Market Growth

The textile sector enjoys a pivotal position in the exports of Pakistan. In Asia, Pakistan is the

8th largest exporter of textile products. The contribution of this industry to the total GDP is 8.5

percent. It provides employment to about 15 million people, 30 percent of the country work

pg. 18

force of about 49 million. The annual volume of total world textile trade is $18 trillion which

is growing at 2.5 percent. Out of it, Pakistan’s share is less than one percent. The development

of the Manufacturing Sector has been given the highest priority since Pakistan’s founding with

major stress on Agro-Based Industries. For Pakistan which was one of the leading producers of

cotton in the world, the development of a Textile Industry making full use of its abundant

resources of cotton has been a priority area towards industrialization. At present, there are

1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which

produce textile products (12).

Our industry consists of large-scale organized sector and a highly fragmented cottage / small-

scale sector. The various sectors that are a part of the textile value chain are: Spinning, cotton,

yarn, weaving, denim jeans and finished garments, most of the spinning industry operates in

an organized manner with in-house weaving, dyeing and finishing facilities. Weaving

comprises of small and medium sized entities. The processing sector, comprising dyeing,

printing and finishing sub-sectors, only a part of this sector is operating in an organized state,

able to process large quantities while the rest of the units operate as small and medium sized

units. The printing segment dominates the overall processing industry followed by textile

dyeing and fabric bleaching. The garments manufacturing segment generates the highest

employment within the textile value chain. Over 75% of the units comprise small sized units.

The knitwear industry mostly consists of factories operating as integrated units (knitting +

processing+ making up facilities). The clothing sectors both woven and knits are mainly

clustering in Karachi, Lahore and Faisalabad where sufficient female workers are available.

Now here I must mention the statistics that shows the all-time negative growth during the

whole period of crises. According to Pakistan Bureau of Statistics, textile industry shows a 5.6

percent of negative growth. In the Yarn export section, we get 51.24 percent of negative

growth that is also a highest in the history. Energy crises are the root cause for all these

situation but if we study in depth we get to know that research and development program is

also on hold by our government, imposition of VAT (Value Added Tax) also put a negative

impact on the sector. High rate on loans providing by banks for machinery import also another

attempt to ruin the exports of the country’s textile.

Pakistan is the world’s 4th largest producer and 3rd largest consumer of cotton. The Textile

and Clothing Industry has been the main driver of the economy for the last 50 years in terms of

pg. 19

foreign currency earnings and jobs creation. The Textile and Clothing Industry will continue to

be an important engine for future growth of the economy; there is no alternative industry or

service sector that has the potential to benefit the economy with foreign currency earnings and

new job creation, especially if synergy is developed amongst different sub sectors and efforts

are made to aggressively grow the Ready-made Clothing Sector. Pakistan’s Textile Industry

had proved its strength in global market during the last four decades. It has proved its strength

even in post quota era by not only sustaining its position but, also showing growth during 2005

to 2007, but declined to $11.1 billion in 2008 due to economic meltdown globally and internal

power issues. The Garment Sector and especially the Knit Garment Sector need special focus

in future (7. ESP). From following data we can easily find out total Pakistan Export in Textile

Sector:

EXPORT OF TEXTILE AND CLOTHING (US $ MILLIONS)

Internally the increase in cost of utilities, (Power, Gas, Transport, and Petrol) has impacted

viability. The power & gas outages have further deteriorated capacity utilization.

The lower availability of electricity was also a key constraint for the value-added textile

sector. According to State Bank’s quarterly report, unfortunately, due to circular debt local

pg. 20

refineries could not provide required Furnace Oil quantity to power generation companies. As

a result, import burden has increased significantly for Furnace Oil provision. The growth seen

in July to December financial year, 2010 period will be challenging to sustain in the

remaining months of financial year, 2010 given the inadequate energy balances in the

country. For instance, the increase of 0.5 percent in gas exploration during July to November

financial year, 2010 period does not seem sufficient to fuel a quick recovery. It must be

noticed here that gas constitutes more than 50 percent of total energy consumption by

industries. Similarly, scanty power investments in recent years allowed only a small increase

in electricity generation capacity; which too often remains under-utilized due to water

shortages or insufficient provision of gas and/or furnace oil. For instance, as winter rains

remained low in financial year 2010, the Hydel generation capability declined sharply in

January, 2010. Similarly, gas sales to power sector also declined during financial year, 2010.

Consequently, the use of furnace oil (FO) for thermal generation increased. The gas load

shedding to textile industries for 1 day in a week decreases the production of textile finished

products due to dyeing process.

The textile industry of Pakistan plays an important role in earning foreign exchange,

providing employment to the country. But due to electricity problems, Pakistan textile loses

share in world trade of textile products. Pakistan textile products will have a big potential to

capture big share of world trade but there are lots of reasons which forces to step back from

using the full capacity of textile machinery to earn more and more foreign exchange for the

country. In upcoming year, Pakistan textile exports are 10-11 billion US dollars

approximately. Government of Pakistan is not serious in resolving problems like shortage of

electricity and gas which forces the textile exporters not to take orders because not fulfill the

orders on time. With these reasons import of Textile machinery declined year on year basis.

With all these reasons, many of textile industries owners use old machinery which is less

efficient and not up to the mark with the competing countries. If, Government of Pakistan

does not take immediate steps to counter all these problems then Pakistan trade deficit will

raise more as compared to financial year, 09-2010 due to this Pakistan rupee will depreciate

more (11. SMEDA).

With the advancement in the crop technology over the years, world’s cotton production has

also increased despite reduction in the cultivation area. In spite of decline in the cotton crop

pg. 21

during last few years, China continues to contribute highest proportion in the total world

production and consumption followed by India.

pg. 22

Pakistan’s textile industry is going through one of the toughest period in decades. Depreciation

of Pakistani Rupee has raised the cost of imported inputs. Pakistan textile exports have gone

down during last three years as exporters cannot effectively market their products since buyers

are not visiting Pakistan due to adverse travel advisory and it is getting more and more difficult

for the exporters to travel abroad. Although we are 4th largest producer and 3 rd largest

consumer of cotton but unfortunately now we are at number 12 in the international trade of

textile products (7).

The workers working in Textile Industries are not satisfied with their working conditions, their

wages are not up to the mark. Even the environment provided in the industries is very injurious

to their health.

The textile industrialists were greatly concerned over the adverse publicity inflicted on the

country's image as a consequence of the events of 11th September, 2001 and the recent terrorist

attacks within the country. Undue war risk surcharge has been levied by all foreign shipping

lines on consignments from and to Pakistan and fewer airlines are touching Pakistan airports

due to which freight cost of exports has considerably increased. They urged the government to

formulate and earnestly implement business friendly and export facilitating policies.

Moreover, critics argue that the textile industry has obsolete equipment and machinery. The

inability to timely modernize the equipment and machinery has led to the decline of Pakistani

pg. 23

Performance of Textile Industry

Energy Crises

textile competitiveness. Due to obsolete technology the cost of production is higher in Pakistan

as compared to other countries like India, Bangladesh and China.

Textile crisis is becoming severe in the Country due to overall recession and slow down of

economies around the globe. Our Textile sector is heavily export oriented. International sales

in Textile Markets suffered a lot as a consequence of which manufacturers and traders who

supply goods & services to exporters have suffered heavy losses.

3.5 Conceptual Framework:

3.6 Hypothesis Testing:

H1: Energy crises impacts on increase in unemployment level by textile industry.

H2: Reduction in Exports creates a negative effect on textile sector performance.

H3: Reduction in Gross domestic product puts another negative effect on textile industry performance.

4. Data Analysis and Presentation

Our research is a perception based study determine to perceived impact of high energy crises,

high unemployment, reduction in Exports as well as GDP on the textile sector of Pakistan. For

determining the impact of these variables, we select 60 textile companies from different area

of Sindh such as Karachi, Nooriabad, Hyderabad and Kotri were selected for analysis. Three

pg. 24

Exports

Unemployment

Gross Domestic Product (GDP)

hypotheses were statistically tested with the performance of textile industry in Pakistan. Our

research focused on how each variable contribute to the performance of textile industry.

Below mentioned chart shows the descriptive analysis of primary data collected from 80

textile industry.

Descriptive Summary Of Data

PARTICULARSST.AGREE AGREE NUTRAL DISAGREE ST. DISAGREE TOTAL

Q1. ENERGY 1 69.3% 27.7% - 1.5% 1.5% 100.0

%Q2. ENERGY 2 52.3% 36.9

% 6.2% 4.6% - 100.0%

Q3. EXPORTS 1 44.6% 49.2% 3.1% 3.1% - 100.0

%Q4. GDP 1 4.6% 35.4

% 29.2% 24.6% 6.2% 100.0%

Q5. UNEMPLOYMENT1 18.5% 38.5

% 26.1% 15.4% 1.5% 100.0%

Q6. ENERGY 3 12.3% 44.6% 26.2% 15.4% 1.5% 100.0

%Q7. ENERGY 4 63.1% 23.1

% 4.6% 9.2% - 100.0%

Q8. ENERGY 5 38.5% 43.0% 6.2% 12.3% - 100.0

%Q9. ENERGY 6 46.2% 44.6

% 7.7% 1.5% - 100.0%

Data analysis and Interpretation

Primary data are collected through questionnaire from 60 textile companies of different area of

Sindh like Karachi, Nooriabad, Hyderabad and Kotri. The respondents from which data was

collected are Directors, senior level managers, Managers of textile companies. There are total

80 respondents and their classification on the basis of designation and experience is shown

below through the bar chart.

pg. 25

Reliability Analysis

Cronbacch’s alpha shows the internal consistency (Reliability) or average correlation of items in a survey. The value of alpha rages from 0 to 1, the higher the value, we found the more reliable scale. Here the value of alpha for our 9 items is 0.633 suggesting that the questions have relatively high internal consistency and the alpha of 0.60 or higher is considered as good or acceptable.

Reliability Statistics

Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items

N of Items

.633 .664 9

Testing of Hypotheses

As mentioned above, three hypotheses were drawn for analyzing the impact of energy crises on the performance of textile industry. Performance of textile industry is in term of exports, unemployment and GDP are variables which are impacting the performance. Each of above variable was separately tested against the productivity for analyzing the

pg. 26

impact and relationship among them. SPSS is used for testing hypothesis and determining the statistical relationship.

H1: Energy crises impacts on increase in unemployment level by textile industry.

In this hypothesis a model is developed between textile industry performance and

Unemployment. The productivity of employment is dependable on textile sector of the

country. The productivity of textile industries is dependable on energy. As energy crises increases the performance of textile industries decreases and unemployment in the region increases. A table shows the frequencies of Unemployment variables mentioned below:

Unemployment

Frequency Percent Valid Percent Cumulative

Percent

Valid

Neutral 18 9.0 9.0 9.0

Agree 96 48.0 48.0 57.0

Strongly Agree 86 43.0 43.0 100.0

Total 200 100.0 100.0

Most of the respondent strongly agreed that the textile industries showing negative figures in term of business. From the above table we can see that 65% respondents strongly agreed and around 26% of respondents agreed. On the basis of above frequency table we conclude that most of respondent agreed that due to the decline in textile sector of Pakistan, a direct impact hit the Labour unemployment in the region.

pg. 27

By applying T-test model following outcomes are obtained

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Unemployment 200 4.34 .638 .045

The mean respondent about the energy crises is 4.34 which show that most of the respondents

are agreed.

One-Sample Test

Test Value = 4

t df Sig. (2-tailed) Mean

Difference

95% Confidence Interval of the

Difference

Lower Upper

Unemployment 7.542 199 .000 .340 .25 .43

One sample T-test is used to determine if the mean of a sample is different from a particular value. Here test value which we select is 4 which show that the respondent are agree. If the mean of sample is less than test value than value of T-test is less than significance value and if the mean is equals or greater than the sig value than the value of T-test must be positive. In this model the T value is 7.54 which is positive and shows that most of

pg. 28

respondent are strongly agreed that unemployment shows a higher figure because of worst crises faced by our textile sector due to energy crises.

H2: Reduction in Exports creates a negative effect on textile sector performance.

In this hypothesis a model is developed among textile sector performance and reduction in exports. The performance of textile industries is dependable on export sales as well as local sales. As shortage in provision of power sources increases the operational loss of the sector and it can not only meet its local demand were huge export sales orders cancellation takes place performance of textile decreases. Mentioned below table shows the frequencies of Poor situation of textile exports variable:

Effect on Exports

Frequency Percent Valid Percent Cumulative

Percent

Valid

Agree 107 53.5 53.5 53.5

Strongly Agree 93 46.5 46.5 100.0

Total 200 100.0 100.0

Most of the respondent strongly agreed that the poor exports situation negatively impacting the performance of textile industry. From the above table we can see that 46.5% respondents strongly agreed and around 53.5% respondents agreed. On the basis of above frequency table we conclude that more than 90% of respondent agreed that due to poor exports situation performance of textile industries behave negatively. Mostly the respondent from Karachi strongly agreed that sales order received less after the energy crises held in the country and the situation badly impact on their businesses operations and productivity.

pg. 29

By applying T-test model following outcomes are obtained

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Effect on Exports 200 4.47 .500 .035

Here the value average mean is 4.47 which means that average response of respondent is

towards agree.

One-Sample Test

Test Value = 4

t df Sig. (2-tailed) Mean

Difference

95% Confidence Interval of the

Difference

Lower Upper

Effect on

Exports13.152 199 .000 .465 .40 .53

In this model the T value is 13.1 which is positive and shows that most of respondent are agreed that poor situation of exports is playing negative contributions to the performance of Pakistan’s textile industry. The test

pg. 30

value for this model is also 4 which mean that if the average response of respondent is equals or greater than 4 so that model should not be rejected because most of respondent agreed the variable negatively impacting their businesses operations. In this model null hypothesis should be rejected and alternative hypothesis should not be rejected.

H3: Reduction in Gross domestic product puts another negative effect on textile industry performance.

In this hypothesis a model is developed among Gross Domestic Product of the country and

textile industries of Pakistan as low productivity and performance cause decline of the textile

sector throughout the country. The Textile sector contribute a major part in our GDP hence it’s

depending on the productivity and performance of textile sector. This is due to energy crises in

the country, main reason that is the main independent variable of our research and this

situation have negatively impact on the performance of textile industries which ultimately

cause worst performance of the textile sector.

Effect on GDP

Frequency Percent Valid Percent Cumulative

Percent

Valid

Neutal 23 11.5 11.5 11.5

Agree 119 59.5 59.5 71.0

Strongly Agree 58 29.0 29.0 100.0

Total 200 100.0 100.0

In this model most of the respondents are agreed that textile industries are shifting from

Pakistan to other foreign countries because of low performance and productivity. From the

above table we can see that 59.5% respondents are agreed. From above table we conclude that

the average response of respondents is agreed that low productivity and performance of

nations GDP causes unfavorable conditions for textile business in Pakistan.

pg. 31

By applying T-test model following outcomes are obtained

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Effect on GDP 200 4.18 .613 .043

The average mean of this model is 4.1% which mean that most of respondent are agreed.

One-Sample Test

Test Value = 4

t df Sig. (2-

tailed)

Mean

Difference

95% Confidence Interval of

the Difference

Lower Upper

Effect on

GDP4.035 199 .000 .175 .09 .26

In this model the T value is 4.035 which is positive and greater than the significance value which shows that most of respondent are agreed that GDP is depending on our textile sector as many other items are also including in our GDP but along them, but there is a significant contribution of textile sector in our GDP. The test value for this model is also 4 which

pg. 32

mean that if the average response of respondent is equals or greater than 4 than model should not be rejected because most of respondent agreed that shifting cause due to low performance. In this model the significance value is greater the 4% which means null hypothesis should be rejected and alternative hypothesis should not be rejected.

Results and Discussion

This response of the first question supports the hypothesis No.1 “Energy crises impacts on increase

in unemployment level by textile industry”, although the respondents said that energy crisis

situation in Punjab and Sindh is different but overall it reduces the performance of textile industry.

Most of the companies have shut down their operations due to this power crisis and many of them

shifted abroad. They said that the companies have formed their own power plants to run their business

but to have their own power plants it needs a lot of investment and extra cost to the production so the

large scale businesses can have power plants but the small and medium scale industries cannot afford

this heavy investment. In response of second question the hypothesis H3: “Reduction in Gross

domestic product puts negative effect on textile industry performance” is accepted because most

of the respondents agreed that the poor distribution of power creates a block on our production in

Textile sector impacts on Exports and increasing the figures of unemployment in the country

discourages foreign investors to invest which is reducing the yearly production quantum of textile

sector and also acting as a barrier in capitalizing the opportunities. Like energy crisis there is

instability in country’s economic condition also faced this is due to lack of expected production and

performance in the sector caused by law & order situation, strikes in labour divisions of different

textile sectors in collaboration with associations. “Yes” there was a strongly positive answer to the

question No.3 that accepts the hypothesis H2. “Reduction in Exports create a negative effect on

textile sector performance”, respondents said there is major decline in sales from the exporters from

Pakistan to other countries. Bangladesh is the major destination where industry is moving because

their government offering incentives like uninterrupted power supply, free market access to the

European Unions, tax benefits, cheap and skilled labor, these all factors encourages the business to

move in Bangladesh that cut down our exports badly.

Appendix I

pg. 33

This survey is conducted for the academic purpose only. All your personal information will be kept confidential and will not be misuse by anyone.

Name: ______________________________

Organization:________________________________________

Years in Organization: 1. Less than 1 2. 1 to 5 3. 6 to 10 4. More than 10

Designation: 1. Director 2. Senior Manager 3. Manager 4. Assistant Manager

Department: 1. Marketing 2. Finance 3. R&D 4. Supply Chain 5. Other

Strongly Agree Agree Neutral Disagree Strongly Disagree

5 4 3 2 1

S# Questions Strongly Agree

Agree Neutral Disagree Strongly disagree

5 4 3 2 1

1 What is your opinion about energy crises impact on our textile industries?

2 Are these crises hit Punjab and Sindh significantly different?

3 What are your opinion about exports of textiles industries gets effected because of our energy crises?

4 What do you think any impact on our GDP by textile industries performance?

5 What is your opinion about the unemployment caused by these energy crises? Are they worst in whole textile sector?

pg. 34

6 What should do textile industries to overcome the energy crises to cover and increasing their sales? Should they adopt personal efforts to deal with current crises?

7 Are the companies operation disturbed worst by the situation going on by these crises?

8 According to you, any measures should be taken by government to overcome these crises, what measures should be taken initially for the future?

9 Do you think current efforts that are taken by the government are helpful and productive for the industrial growth in the country?

Appendix II

S# MILLS NAME S#

MILLS NAME

1 A.A. SPINNING MILLS LTD. 41 APOLLO TEXTILE MILLS LTD.

2 A.J. SPINNING MILLS (PVT.) LTD. 42 ARAIN FIBRES LTD.

3 A.J. TEXTILE MILLS LTD 43 ARAIN MILLS LTD.

4 ABDULLAH TEXTILE MILLS (PVT.) LTD.

44 ARAIN TEXTILE MILLS LTD.

5 ABU BAKAR TEXTILE MILLS 45 ARSHAD CORPORATION (PVT) LTD.

6 ACME MILLS (PVT) LTD. 46 ARSHAD TEXTILE MILLS LTD.

7 ACRO TEXTILE MILLS LTD. 47 ARTISTIC MILLINERS (PVT) LTD

8 ADIL TEXTILE MILLS LTD. 48 ARUJ TEXTILE MILLS LTD.

9 ADNAN TEXTILE MILLS (PVT) LTD 49 ARZOO TEXTILE MILLS LTD.

10 AFZAL SPINNING MILLS (PVT) LTD. 50 ASHER IMRAN SPINNING MILLS (PVT.) LTD

11 AHMAD DIN TEXTILE MILLS (PVT.) 51 ASHIANA COTTON PRODUCTS LTD.

pg. 35

LTD.

12 AHMAD HASSAN TEXTILE MILLS LTD.

52 ASHRAF SPINNING MILLS (PVT.) LTD.

13 AHMED FINE TEXTILE MILLS LTD. 53 ASIM TEXTILE MILLS LTD.

14 AHMED ORIENTAL TEXTILE MILLS LTD.

54 ASLAM TEXTILE MILLS LTD.

15 AISHA COTTON MILLS LTD 55 AYAZ TEXTILE MILLS LTD.

16 AKRAM COTTON MILLS LTD. 56 AYESHA SPINNING MILLS LTD.

17 AL TEXTILES (PVT.) LTD. 57 AYESHA TEXTILE MILLS LTD.

18 ALAM COTTON MILLS (PVT.) LTD. 58 AZAM TEXTILE MILLS LTD.

19 ALAM SPINNING MILLS (PVT.) LTD. 59 AZGARD NINE LIMITED

20 AL-AZHAR TEXTILE MILLS LTD. 60 AZIZ SPINNING MILLS LTD.

21 ALHAMD CORPORATION (PVT.) LTD. 61 BABRI COTTON MILLS LTD

22 ALI AKBAR SPINING MILLS LTD. 62 BAIG SPINNING MILLS LTD

23 ALI AKBAR TEXTILES (PVT) LTD. 63 BANNU WOOLEN MILLS

24 ALI ASGHAR TEXTILE MILLS LTD 64 BARKAT TEXTILE MILLS LTD.

25 ALI HAQ SPINNING (PVT) LTD. 65 BASHIR COTTON MILLS (PVT) LTD.

26 AL-KARAM TEXTILE MILLS (PVT) LTD

66 BEST EXPORTS (PVT) LTD.

27 ALLAWASAYA SPIN. MILLS (P) LTD. 67 BHANERO TEXTILE MILLS LTD 1/2

28 ALLAWASAYA TEXT. & FIN. MILLS LTD.

68 BHIMRA TEXTILE MILLS (PVT) LTD.

29 AL-NASR TEXTILES LTD. 69 BILAL FIBRES LTD.

30 AL-QADIR TEXTILE MILLS LTD. 70 BILAL SPINNING MILLS LTD.

31 AL-ZAMIN TEXTILE MILLS LTD. 71 BILAL TEXTILES (PVT.) LTD.

32 AMER COTTON MILLS LTD. 72 BISMA TEXTILE MILLS LTD.

33 AMIN TEXTILE MILLS LTD 1/2 73 BISMILLAH TEXTIES (PVT) LTD.

34 AMJAD TEXTILE MILLS LTD. 74 BLESSED TEXTILES LTD.

35 ANAM WEAVING MILLS LTD. 75 BLUE STAR SPINNING MILLS LTD.

36 ANJAM TEXTILE MILLS (PVT) LTD. 76 BROTHERS TEXTILE MILLS LTD.

37 ANMOL TEXTILE MILLS LTD. 77 BUREWALA TEXTILE MILLS LTD.

pg. 36

38 ANNOOR TEXTILE MILLS LTD 78 CA TEXTILE MILLS (PVT.) LTD.

39 ANOUD TEXTILE MILLS LTD 79 CHAKWAL SPINNING MILLS LTD.

40 ANWAR TEXTILE MILLS LTD 80 CHAKWAL TEXTILE MILLS LTD.

81RIAZ TEXTILE MILLS (PVT.) LTD

110

CITY TEXTILES (PVT) LTD.

82RIZWAN TEXTILE MILLS LTD.

111

COMFORT KNITWEARS (PVT) LTD.

83ROOMI FABRICS LTD.

112 CHAWLA SPINNING MILLS LTD.

84ROYAL TEXTILE MILLS LTD

113 CRESCENT COTTON PRODUCTS

85RUBY TEXTILE MILLS LTD.

114 CRESCENT FIBRES LTD

86S. FAZALILAHI & SONS (PVT) LTD

115

DAWOOD SPINNING MILLS (PVT.) LTD.

87SAAD TEXTILE MILLS (PVT) LTD.

116

DEWAN KHALID TEXTILE MILLS LTD

88SADHUJA TEXTILE MILLS LTD

117 DEWAN TEXTILE MILLS LIMITED

89SADIQ TEXTILE MILLS (PVT.) LTD.

118 DIAMOND FABRICS LTD.

90SAF TEXTILE MILLS LTD

119 DIAMOND INTER.CORPORATION

91SAIF TEXTILE LIMITED

120

EASTERN SPINNING MILLS LTD.

92SAJJAD TEXTILE MILLS LTD.

121 EASTERN SPINNING MILLS LTD.

93SALFI TEXTILE MILLS LTD

122 EJAZ TEXTILE MILLS LTD.

94SALLY TEXTILE MILLS LTD.

123 ELLCOT SPINNING MILLS LTD.

95 SALMAN NOMAN ENTERPRISES LTD.

124 EMPIRE TEXTILE MILLS (PVT.) LTD.

96 SAMIN TEXTILES LTD. 12 FAISAL ASAD TEXTILE MILLS LTD.

pg. 37

5

97SAMIRA FABRICS (PVT) LTD.

126 FAROOQ AHMAD COTTON MILLS

98SAMIRA INDUSTRIES (PVT) LTD.

127 FATIMA ENTERPRISES LTD.

99SANA INDUSTRIES LTD

128 FAZAL CLOTH MILLS LTD.

100 SANAULLA WOOLEN INDUSTRIES

129 FAZAL REHMAN FABRICS LTD.

101

SANDALBAR TEXTILE MILLS LIMITED

120

FEROZ TEXTILE INDUSTRIES (PVT) LTD

102 SAPPHIRE FIBRES LTD.

121 GADOON TEXTILE MILLS LTD

103 SAPPHIRE TEXTILE MILLS LIMITED

122 GALAXY TEXTILE MILLS LTS.

104 SARDARPUR TEXTILE MILLS LTD.

123

GOODLUCK TEXTILE MILLS (PVT) LTD

105 SARFRAZ TEXTILES (PVT) LTD.

124 GUL AHMED MILLS LTD

106 KOHAT TEXTILE MILLS LTD

125 GULISTAN FIBERS LIMITED

107 KOHINOOR TEXTILE MILLS LTD.

126 GULISTAN TEXTILE MILLS LTD.

108 KOHINOOR LOOMS LTD.

127 KOHINOOR MILLS LTD.

109 KOHINOOR SPINNING MILLS LTD.

128

PARADISE SPINNING MILLS (PVT.) LTD.

129 KOHINOOR TEXTILE MILLS LTD.

158 PARAMOUNT SPINNING MILLS

120 KUNJAH TEXTILE MILLS LTD.

159 GLOBE TEXTILE MILLS LTD

121 LATIF COTTON MILLS LTD

160 GOLDEN TEXTILE MILLS LTD.

122 LATIF FIBRES (PVT) LTD

161 PARSONS INDUSTRIES (PVT) LTD

13 LATIF TEXTILE MILLS LIMITED 16 PIONEER SPINNING MILLS LTD.

pg. 38

0 2

131 LUCKY COTTON MILLS (PVT) LTD

163 PLATINUM SPINNING MILLS

132 MAHMOOD TEXTILE MILLS LTD.

164 POPULAR FIBRE MILLS LTD

133 MAJEED FABRICS LTD

165 PREMIUM TEXTILE LTD

134 MANZOOR TEXTILE MILLS LTD.

166 PRIDE SPINNING MILLS (PVT.) LTD.

135 MAQBOOL TEXTILE MILLS LTD.

167 PROSPERITY WEAVING MILLS LTD.

136 MARHABA TEXTILE LTD

168 QUALITY TEXTILE MILLS LTD.

137 MASTER TEXTILE MILLS LTD.

169 QUETTA TEXTILE MILLS LTD

138 MAYFAIR MILLS LTD.

170 QURESHI TEXTILE MILLS LTD.

139 MEKOTEX (PVT) LTD

171 RAFIQ SPINNING MILLS (PVT.) LTD.

140 METCO TEXTILE MILLS LTD

172 RAHIM BAKSH TEXTILE MILLS LTD.

141 MODERN TEXTILE MILLS LIMITED

173 RAHMAN COTTON MILLS LTD

142 MOHIB EXPORTS LTD.

174

RAI TEXTILE MILLS LTD.

143 MOIZ TEXTILE MILLS LTD.

175

RAMZAN BUKSH TEXTILE MILLS LTD.

144 NADEEM TEXTILE MILLS LIMITED

176 RAVI SPINNINGS LTD.

145 NAGARIA TEXTILE MILLS LIMITED

177 SARITOW SPINNING MILLS LTD.

146 NAGINA COTTON MILLS LTD

178 SERVICE FABRICS LTD.

147 NAKSHBANDI INDUSTRIES LTD

179 SHADAB TEXTILE MILLS LTD.

14 NASEEM ENTERPRISES (PVT) LTD. 18 SHADMAN COTTON MILLS LIMITED

pg. 39

8 0

149 NAZIR COTTON MILLS LTD.

181 SHADMAN COTTON MILLS LTD.

150 NISHAT MILLS LIMITED

182 SHAFI SPINNING MILLS LTD.

151

OLYMPIA BLENDED FIBRE MILLS LTD.

183

SHAFI TEXCEL LTD.152 OLYMPIA SPG. & WVG. MILLS LTD

184

SHAH JEWANA TEXTILE MILLS LTD.

153 OLYMPIA TEXTILE MILLS LTD.

185 SHAHEEN COTTON MILLS LTD.

154 PAK DENIM LIMITED

186 SHAHNAWAZ TEXTILES LTD.

155 PARADISE FIBRES (PVT.) LTD.

187 SHAHRAJ FABRICS (PVT.) LTD.

156 SHAMS TEXTILE MILLS LTD.

188 SHAHZAD TEXTILE MILLS LTD.

157 SIDDIQSONS PVT. LTD

189 DENIM MILLS LTD

190

SIDDIQSONS INDUSTRIES (PVT) LTD

214

SOORTY ENTERPRISES PVT LIMITED19

1SILVER LINE SPINNING MILLS (PVT) LTD.

215

SPINTEX ENTERPRIESE (PVT) LTD.192 SITARA FABRICS LTD.

216 STANDARD SPINNING MILLS LTD.

193 J.A. TEXTILE MILLS LTD.

217 STANDARD TEXTILE MILLS

194 JAMHOOR TEXTILE MILLS LTD.

218 STAR TEXTILE MILLS LTD

195 JUBILEE SPG. & WVG. MILLS LTD

219 SUPERIOR TEXTILE MILLS LTD.

196 KAMAL SPINNING MILLS LTD.

220 SURAJ COTTON MILLS LTD

197 KASHIR TEXTILE MILLS LTD.

221 SURRIYA TEXTILE MILLS LTD

198 KASSIM TEXTILE (PVT) LTD

223 TAJ TEXTILE MILLS LTD.

199 KHALID NAZIR SPINNINGS LTD.

224 TAQEES (PVT) LIMITED

20 KHALID SIRAJ TEXTILE MILLS LTD. 22 TATA TEXTILE MILLS LTD. pg. 40

0 5

201 KHAS TEXTILE (PVT) LTD

226 TAXILA COTTON MILLS LTD.

202 TRITEX COTTON MILLS LTD.

227 TAYMUR SPINNING MILLS LTD.

203 UMER SPINNING MILLS (PVT.) LTD.

228

THREE STARS SPINNING MILLS (PVT) LTD.

204 US DENIM MILLS (PVT) LTD.

229 YOUSAF WEAVING MILLS LTD.

205 USMAN MILLS LIMITED

230 ZAHUR TEXTILE MILLS LTD.

206 ARTISTIC FABRIC MILLS (PVT) LTD

231 ZAM COTTON MILLS LTD

207 ORIENT TEXTILE MILLS LTD.

232 ZAMAN TEXTILE MILLS LTD

208 STALION TEXTILE LTD

233 RASHEED ENTERPRISES LTD

209 YOUNIS TEXTILE LTD

234 S. FAZALILAHI & SONS (PVT) LTD

210 SHAH ZAMAN TEXTILES LTD

235 NATIONAL SPINNING MILLS LTD

211 AWAMI TEXTILE MILLS LTD

236 HIDAYATULLAH TEXTILE LTD

212 CENTER MILLS LTD

237 AGAR TEXTILE MILLS LTD

213 JUNAID TEXTILE LTD

238 TARIQ TEXTILE MILLS LTD

pg. 41

Bibliography:

1. NEPRA, accessed January 03, 2014.

http://www.nepra.org.pk/nepra.htm

2. Dawn dated: 14 December, 2013, Tribune dated: 25 November, 2013.(1) http://www.dawn.com/news/1073896/iran-cancels-pakistan-gas-pipeline-loan (2) http://tribune.com.pk/story/636643/ip-gas-pipeline-project-brought-back-to-life/

3. Farhan Zaheer, November 7, 2013

http://tribune.com.pk/story/628166/textile-exports-may-get-a-boost-as-duty-free-access-approved/

4. Farrukh Shehzad Friday, 30 Dec 2011/

http://www.pakistantoday.com.pk/2011/12/30/news/profit/gas-crisis-generating-unemployment/

5. Rashid Lone (Managing director of Sui Northern Gas Pipelines Limited)

http://thediplomat.com/2013/08/pakistans-energy-crisis/

6. Faizan Usmani on May 2012

http://www.utrade.co/Magazine/Utrade-Magazine.aspx?Key=392&Title=Textile

7. Economic Survey of Pakistan (ESP) 2011-12

8. Khan, Aftab A., Khan Mehreen, “Pakistan Textile Industry Facing New Challenges” Euro Journals.

http://www.eurojournals.com/rjis_14_04.pdf (accessed Dec 21, 2011).

9. The Small and Medium Enterprises Development Authority – SMEDA Act & Rules

10. Yaseem Ahmed, “Textile Industry of Pakistan”, Horizon Securities SMC, Pvt. Ltd.,

http://horizonpak.com/db/Reports/research.pdf (accessed Dec 21, 2011.)

11. Pakistan Credit Rating Agency, “Sector Study – Textile Sector FY2011”, Mar2011,

http://www.pacra.com/pdf/Textile%20Sector10.pdf (accessed Dec 21, 2011).

12. Shahbaz Rana Tribune (accessed 9th April, 2013) on survey of PBS.

http://tribune.com.pk/story/533033/every-one-out-of-10-is-jobless-survey/

pg. 42

13. Dr. Samar Mubarak

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=55691&Cat=6

14. Muhammad Annus

http://pakobserver.net/detailnews.asp?id=200910

15. Amanullah Bashar March 22.

http://www.pakistaneconomist.com/database2/cover/c99-15.asp

16. Mr. Sartaj Aziz, the economist, Tuesday, 23 Apr 2013.

http://www.pakistantoday.com.pk/2013/04/23/comment/who-is-responsible-4/

pg. 43