Impact Of Electricity Crisis On The Textile Industry

Impact Of Electricity Crisis On The Textile Industry

The textile sector of Pakistan has a significant contribution to the economy of the country. Development in the textile industry and enhancement in cotton production has been significant in Pakistan since 1947. Mainly it is dependent on locally available raw cotton engaged main part of the industrial labour force and also the prime foreign exchange earner in the country. The textile industrial sector of Pakistan generally splits into two main divisions a large scale organized sector and a small-scale cottage sector. The diverse zones that formulate parts of the textile value chain are spinning, weaving, processing, garment manufacturing and knitwear. Pakistan’s textile industry is extremely reliant upon the spinning sector there are 442 spinning units 1221 ginning units and 425 small units functioning in the country

According to APATMA (2009-2012) textile sector contributes 52% of total exports which is about 12.36 Billion US Dollars, 46%of total manufacturing, 8.5% of total GDP and 5% of the market capitalization. It provides employment to about 15 Million labour force out of 49 Million which approximates to 30% of the workforce of the country. The growth in the textile industry is incredible since last five decades after freedom of Pakistan. The major export market in Europe. More than 50% of the industrialists export their harvests to Europe. Pakistan faces strong competition from China, India, Bangladesh, Taiwan and Turkey in the EU market in textile clothing. The most important textile exports contain cotton cloth, cotton yarn, knitwear, tents, canvas, tarpaulin, silk, cotton fabrics, cotton weaving, fabric processing, towels, home textiles and hosiery.

Faisalabad plays a key role in Pakistan’s Textile production sector because it has a primary agriculture and industry-based economy. With respect to the population, it is the country’s 3rd largest city with a population of almost 2 million. It is known as national industrial capital because of its rapid industrial growth and development and now become a major growth centre of Pakistan with high economic activity. Faisalabad is known as the Manchester of Asia because of its textile manufacturing. The top industries of the country, as well as prominent textile industries in Faisalabad, include Kohinoor, Crescent, Sitara, Rahmania and Lyallpur textile mills. According to APATMA (2014), Faisalabad’s textile industry is the manufacture of textile products. There are 85 spinning units, 200,000 powers loom, 30,000 shuttles looms, 25 cotton printing and finishing mills, 125 sizing industries, 1000 hosiery and knitwear units, 25 cotton ginning and processing units, 400 embroidery unit and one fiber plant largest in the country work in Faisalabad.

 With the passage of time this sector started its development process gradually and finally Pakistan became 4th largest textile exporter but unfortunately, the textile sector of Pakistan faces very serious challenges such as shortage of gas supply, fluctuating yarn prices. Financial crises, energy crises and load shading for several days to the sector, high-interest rate, inflation, law and order situation in the country, furnace oil devaluation of Pakistani rupee, increasing prices of cotton, use of modern technology is limited, lack of specialized worker, high tax rates, export houses, lack of transportation facilities, lacking capacity to meet bulk orders as well as meeting requirements of consumers in terms of fashion, design and delivery schedule, lack of (R&D) institutions in the country to improve the quality of raw materials, lack of modern equipment and machinery, poor physical infrastructure and increasing cost of production due to high fuel prices. Due to all the above situations, the producers and exporters of Pakistan are losing their competitive advantage in global markets

 Energy plays a prominent part in the development of any country economically. Energy not only increases the performance of the country but it is also crucial for the survival of industries and households. Gas constitutes more than 50% of total energy consumption by industries. Rapid technological advancement and increase in knowledge and innovation have caused the producers as well as the consumers much cognizant of the resources of energy that are needed to carry out industrial and mechanical processes. Petroleum, oil, coal and gas are commonly used energy resources. Energy from water is very cheap. Dams are being constructed at suitable locations in different parts of the world to produce electricity. With the depletion of fossil fuels, our attention is diverted towards solar energy and nuclear energy as continuous and sustainable energy sources

 An energy crisis is price rise or any great shortfall in the supply of energy resources to an economy. It usually refers to the shortage of oil and additionally to electricity or other natural resources. The crisis often has effects on the rest of the economy with many recessions being caused by an energy crisis in some form. In particular the production costs of electricity rise which raises manufacturing costs.      

  

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