Energy Crisis In Pakistan

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Karachi University Business School Thesis on “Impact of Energy Crisis on Textile Growth of Pakistan” Submitted to: Prof. Dr. Abdul Rehman Zaki. Submitted by: Jehad Nawaz Seat #: P14116019 5th Semester Content Serial # Title Page # 01 Introduction 3 02 Hypothesis 5 03 Research Methodology 6 – 14 04 Literature Review 15 – 19 05 Chapter 1 (Energy Crisis) 20 – 24 06 Chapter 2 (Impact of Energy Crisis) 25 – 27 07 Conclusion 28 08 Recommendations 29 09 References 30 Introduction The textile sector of Pakistan plays a vital role in economy of country. Its importance arise mainly from its very large cotton production capacity. Pakistan currently ranks as the 4th largest producer of cotton in the world and…show more content…
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 Karachi Electric Supply Company (KESC) and in 1958 formed the Water and Power Development Authority (WAPDA). The purpose of the formation of WAPDA was to manage the growth of schemes in water and power. WAPDA expanded the electricity generation capacity to 636 MW. WAPDA produced 3000 MV in 1970, 7,000MV in 1990, 19,550MV in 2005 and 22,263 MV in 2010. However, fast urbanization and industrialization increases the demand of electricity day to day. However, the textile industry currently faces the problem of shortage of electricity and high interest rate. Due to the shortage of electricity and high interest rate, the cost of production of textile industry increases because the production of the textile industry is decreases and fixed cost of the industry remains the same. The factories operate less time due to electricity shortage and production is also less. If the factories generate private electricity than the cost of electricity is high. A huge amount of money is required for the purpose of generating the electricity. In this way there is a problem, that amount invest in the generation of electricity or operations of the production of textile. High cost of production of textile due to electricity crisis, increase in the electricity costs effected seriously the growth in the textile industry of

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