‘‘IMPACTS OF ENERGY CRISIS ON THE TEXTILE INDUSTRY OF PAKISTAN’’

Introduction
Background:
In Pakistan the textile sector has been recognized as the backbone of the country. Textile has

always played an important role in the progress of the nation. it has eliminated the

joblessness in the country to the great level and has been serving in the extraneous trade to

outspread for approximately the last 50 years which contributes to the GDP 9.5

approximately and it upholds the vital position in the transfer of goods of the country

additionally. Besides this, it provides round 15 million employment out of 49 million for

employment which is approximately the 30 % of the labor or the work force of the country.

(Siddiqui et al, 2012).

As per Pakistan is the part of the Asian continent, it embraces the 8th place all over the Asia

as the exporter of the textile goods in the Asia. Pakistan is considered as the fourth largest

manufacturer of cotton and the 3rd largest user of the cotton products in the world. This

availability of cotton has led the expansion of the textile manufacturing in Pakistan. The

textile sector of Pakistan depends highly upon the spinning activity. In Pakistan at present

there are 442 working spinning units and 1221 ginning units, and these units are providing

the textile goods in Pakistan. (Yaseen, 2011)

The textile sector of Pakistan has been growing up at the very fast pace after independence.

In the previous few years. textile sector has been providing and has recognized itself by

creating a flawless place in the international market and escalating the foreign business in

the state also. But, inopportunely some other factors like politician and economic conditions

of the country has result in the damage of the global market. Other factors like pests on the
crops of cotton and the overwhelming energy crisis of the country has affected the

productivity and the growth sector. The histrionically upsurge of the manufacturing cost is

because of the high petrol costs, the corrupt management strategies, load shedding of the

electricity and the high raw material prices and the deficiency of gas. (SMEDA,2011).

Market Shares of Different Shares of Textile Industry:

As per the Faisalabad Chamber of Commerce and Industry (FCCI), there are just about 1090

enlisted units of various sub-divisions of material industry. This investigation covers 124

firms (subsectors of material industry featured beneath) haphazardly chose by their rate in

piece of the pie as appeared in fig. It accepts 2008 as the reference year in light of the fact

that around then vitality emergency was in introductory stages

Market Share of Textile Sub-sectors

printing&
Embroidery
4% Readymade
Garments
6%
Hosiery
Textile Daying and
11%
34% Chemical
7%

Fabric & Art Silk Sizing

Weaving 14% 1%
21%
Ginning
0%

Spinning
2%
Market share of Different Sectors of Textile Industry in Faisalabad Source: The Faisalabad

Chamber of Commerce and Industry (FCCI)

ENERGY CRISIS AND TEXTILE INDUSTRY OF PAKISTAN:

Energy is known to be the basic component of every production unit however, it is in the

world. It plays an important part in the progress of the nation. This process of making has

suffered a major change from the labor to energy practices (Stern and Cleveland, 2004). By

this is confirmed that industrialization it that process which is energy intensive process. So

we can say that the never-ending supply of energy is indispensable to retain the

manufacturing procedure in track.

Energy crisis in Pakistan:

After ongoing scenes of oil cost increment which began from 2006-2007, tight economic

related position and enormous trade shortage constrained many developing nations

specifically Pakistan, to haul out, in any event tolerably, from the approach of financed

vitality supply .The energy requirement in Pakistan has likewise been expanding persistently

in each part of the economy and forthcoming energy requirement of Pakistan is forecaster to

be, at any rate, multiple times that of today inside next two years. (alahdad, 2012) The focal

point of energy arrangement in Pakistan has been the interest side as it is accepted that

energy emergency in Pakistan is an administration and not a limit issue. Besides this,

request side strategies are being adjusted to spare investment as well as external trade of the

nation.

Textile being the biggest modern and industrial part of Pakistan yields the nation's most

astonishing tariff return of almost 58% giving most of the trade (39%) to a countless level
incompetent just as underutilized labor force and subsidizes 8.5% to GDP. Textile

generation is involved cotton ginning, yarn, fabric, domestic materials, towels, hosiery and

knitwear, readymade dresses of clothing and canvas. These sectors are being delivered both

at the large and little scale sorted out sector just as in disorderly house/little and medium

units. As indicated by Economic Survey of Pakistan (2012-13), this industry is set in

ordered into ginning, spinning, weaving, fabric and cotton fabric partitions though cotton-

material part is additionally sectioned into estimating, down steam, coloring and textile

production.

Textile production is not only energy but also laborious progression where a renovation of

cotton into on its own type of product e.g. shirt, vest, or socks takes around two months with

the contribution of several supportive sub-sectors. It is vital to note that all parts of textile

industry are not correspondingly energy exhaustive and has diverse equal of energy feeding

and reliance but postponement in achieving yield commands in any sub-sector unwillingly

sources additionally suspensions in manufacturing the complete good. These defers cause

uncommon generation misfortunes (as both household and remote clients turn back) and

seriously influence capacity of the material business. Besides, vitality hole likewise changes

among various divisions of the business because of divergent size of generation and

information blend. Huge scale creation divisions are utilizing elective wellsprings of vitality

like generators; in this manner, lessening their vitality hole and generation misfortune at

expanded expense of definite items. Along these lines, high vitality escalated businesses

might not have higher vitality hole with respect to less vitality concentrated ventures that

can't buy expensive vitality contributions because of capital imperatives or awful economic

situations (as less requests lessens economies of scale). These segment level contrasts of
vitality hole and coming about generation misfortune have not been dissected before if there

should be an occurrence of any industry in Pakistan. An ongoing report by Siddiqui et al.

(2011) determined all out mechanical yield misfortune by considering every real industry

including material and announced that yield misfortune falls in the scope of 12 percent to 37

percent because of influence blackouts. This examination doesn't consider the generation

delays by sub-parts of material industry by any stretch of the imagination. This prohibitive

supposition of homogeneity of sub-divisions (in any event, with respect to vitality

utilization) may bring about a predisposition towards under-estimation of the effect of

vitality deficiency on creation cost for the reason talked about above. Further, the

investigation depends on a review led in the second quarter of 2008 while accepting 2007 as

the reference year. It can't, consequently, represent effect of late improvements with respect

to vitality emergency in the material business i.e., seriousness of intensity blackouts, capital

flight, expanded utilization of elective vitality assets and so on. Against this setting, the

present investigation would essentially add to our comprehension about the effect of vitality

emergency on material division.

Textile Industry Handling Power Crisis in Pakistan

In Pakistan, energy crisis began in 2007 and wound up serious in 2008, since that time span,

it has gravely influenced to the generation procedure of significant neighborhood and fare

situated material part of Pakistan.

The textile business has guaranteed a noteworthy part in the economy of Pakistan for a very

long while. It is the biggest assembling industry in Pakistan and gives work to practically

30% of the nation's work power. Pakistan is the fourth biggest nation on the planet that

produces cotton and after that the noteworthy items running from dress to home cloths and
various different items used in everyday life. Be that as it may, this limit has been

incapacitated of late because of intensity cuts and significant moves in the power costs.

The business has seen many good and bad times during these last numerous decades. The

vitality emergency in Pakistan has likewise influenced the material business like the

remainder of the different backgrounds in Pakistan. Several individuals have lost their

positions the same number of processing plants, weaving machines creation units shut

down. The material business has lost an expected 33% generation capacity when contrasted

with the beginning of the new thousand years

The most harm was done to entrepreneurs, weavers creation units. The people dealing with

every day wages endured a great deal and have additionally added to the joblessness figures

which have just been on an ascent as of late. At the point when the weaving machines shut

down because of intensity blackout, there is no work; henceforth no wages.

The power emergency was never settled and still continues, driving a significant number of

the enduring units to work for not exactly their real limit. It has been the survival of the

fittest.

In the start of the power emergency, the makers were compelled to utilize the substitute

hotspots for creating vitality to fulfill the time constraints and accomplish their objectives.

However, that couldn't demonstrate to be a long haul arrangement. The other vitality

sources, for example, diesel and other fuel run generators were an absolute misfortune

because of their high costs and overwhelming utilization.

Presently the main survivors are the greater manufacturing plants that have their very own

vitality creating units. They have figured out how to hold their global requests and
customers after intensely putting resources into their very own vitality creation at the

sincere, which has been a noteworthy difficulty for them as well. In spite of the fact that, the

administration has taken a few activities to supply the producers with continuous power

supply, yet it isn't sufficient.

The need of great importance is to manage this issue on crisis premise. The power costs

should be balanced, as they are far higher than the expenses in the nations contending us in

such manner. The expectations are moved to new power plants, which are evaluated to bring

down the vitality costs after they become practical.

With these progressions the supply should be progressively predictable, to hold the

consistent creation. And still, after all that, it's far to win back the certainty of the customers

and console them an unending supply on schedule and according to their prerequisites. The

insights during the current year up until this point, try not to demonstrate much

advancement in assembling or fares which mean the battling ventures are still a long way

from recouping.

Energy Formulation Policies and Pakistani Government:

In Pakistan energy if always formulated by the federal government and the provincial

government of Pakistan. This administration addresses the issue which is related to the

power generation distribution and the consumption of then energy by making the policies

and stratifies. After the freedom of Pakistan Pakistani military set up to the large

infrastructure of electricity in 1960 by the resources which were provided by the

international monetary source and the various other sources as well. At the time

independence most of the energy which was produces was thermal energy and because of
this country’s most dependency was on the thermal energy and after that hydel energy was

also added to the country’s power system. After all this development, Pakistan’s first

nuclear power plants was established in Karachi during the late 1970s. in this era the ruling

party in the Pakistani government was Pakistan’s peoples party. (PPP). (raza, rizvi, &

fareed, 2014)

How to overcome the energy crisis:

To overcome the maintaining energy crisis and the environmental degradation of the world

we have to tale the pivot steps for the conservation of the energy. For this process the

developing nations are taking interest in increasing the awareness for the generation of the

energy and the usage of the energy in their countries. But there is only few and the limited

information source for the rational use of energy. (sharma, 2013)

The rational practice of dynamism cries for an extensive request of energy maintenance

machineries in the numerous industrial divisions where energy is misused. Industries with

the intensive energy usage includes textile industry which is considered to improve the

efficiency of energy usage through the introduction of new and varied conservation of

technology. Textile sector is one of the major energy consuming industries and they have

maintained the record of the lowest efficiency in the utilization of energy. in weaving, about

23% of the energy is consumed. Spinning with the 34% of the energy consummation, 38%

in the chemical processing and the remaining 5% for the other purposes.

In this era, due to the fast and furious growth of the industries which causes the most

efficient consumption of the energy it has become important to maintain the energy

management. The mechanism of the energy conservation has been affected through the

process of machine modification, due the increase in the new technology and the proper new
chemical recipes. The ways for which the new energy sources can be utilized are yet to be

explored. The energy resources include, solar energy, tidal powers, wind energy and the

nuclear energy, nevertheless the preliminary price of the manufacture will rise in phases

with the price of oil , which creates progress of such foundations uncertain in footings of

charge sustained (sharma, 2013)

Energy use in the textile industry:

In general, the textile sector is not considered as the energy consuming or the energy

intensive industry. But the textiles industries are always comprised of the large number of

the plants which together make the industry at the large scale and sector consumes a

noteworthy amount of energy together. The entire energy expended by the textile industry in

a country directly depends upon the manufacturing sector the country. For example, the

textile industry counts about 4% of the final energy used in manufacturing in china. While

this share is less than about 2% in the united states of America. This total share of the

product cost expended on energy in the textile industry also varied from country to country.

Both fuel and electricity are required in large amount at textile industry. The share total fuel

and electricity used at the textile industry in the country depends upon the structure of

textile. for example, in the spun yarn spinning, electricity is the main component as the

source of the energy. Whereas in the wet processing the type of energy is used is fuel.

There is the significant loss within the textile industry as well. About 36% of the energy

input to the US textile industry is on loss. The motor driven system used in the textile

industry has the highest ratio of onsite energy waste which is 13%. Followed by the boiler
 losses as well. These losses share depends upon the structure of the industry and it varies

from country to country. (Khude, 2017)

Focus Areas for Energy Conservation:

Thermal Energy:

Thermal energy is mainly used for the chemical dispensation while power controls consumption

pattern in spinning and weaving. Thermal energy in factories is used generally used for two

procedures; and that two procedures are heating of water and drying of water. Thermal energy in

the form of steam is provided to several equipment’s with the help of pipes.

Electrical energy

The foremost usage of electrical energy I the textile sector is in the manufacturing of yarn and

cloth, amounting to nearly 75% to 80% of the total power requirement in the factories, while

hardly 15% to 20% of electrical power is spent to run different machines in textile wet

processing. The wet processing of textiles uses about 15% of the overall electrical energy mostly

only to run various processing machines. Some textile factories draw their power requirements

from their particular state- run electricity boards. At times adverse effects are causes resulting

severe power cuts for the industrial sector. Because of this more than a few factories have

decided to have their own confined generation in spite of increased cost. Some factories have

tried for turbines. On the other hand, their use is inadequate because of the non-availability of

little to moderate turbines and their conservation as compared to diesel engines.

Average electrical energy consumption per day in a textile sector is as under:

 Blow Room
Department
Autocone
0%
Department
Compressor 7%
10%

Ring Department
45%

AC
27%

Drawing Combining
Department Department Simplex Department
3% 4% 4%

Energy Conservation In Textile Sector:

For gasoline conservation, a number of the measures are stated under.

 Human thing control.

 Fuel choice.

 Fuel coping with and garage.

 Fuel combustion. .

 Steam generation. .

 Steam distribution. . Steam usage. .

 Maintenance of gadget. .
 Waste heat recuperation.

 Alternate sources of fuel.

 Renovation / substitute of present flora.

 Process modification

Impacts of energy crisis on textile mills of Pakistan:

Unemployment:

When there are jobless people in the society then unemployment take place in a region. Due

to the energy crisis in the country huge labor force has been move towards the

unemployment, because 20% of the population or the we can say the work force of the

country and 46% of the total labor force of the manufacturing are produced by the textile

industry in Pakistan. Only Faisalabad generates the great and huge tax revenue after the city

Karachi because of these textile mills. The labor force working in the textile industry. Now

days Pakistan has been stuck in the huge energy crisis and unemployment is the problem

which based on the energy crisis. . country’s work force which is employed in the textiles

mills is getting brutal effects due this energy crisis. Many of the employees working in the

textile industry get fired due to the energy crisis which continuously effect the social

cultural and the economical values of the work force. Due to these energy crises most of the

time the mill owners don’t have other option besides firing the employees and shut their

textile unit off.

Exports:

Around 10.2 billion dollars are made by the Pakistani textile industry which is comprised of

the 52% of the total exports of the country. Due to the energy shortage in Pakistan, it has
 lost about the major parts of the exports of the country. Ans the other law and order situation

also results in this the less exports of country. According to some facts and figures in 1999

around $ 5.2 billion were the exports of Pakistan which rose up to $10.5 billion in the year

2007. textile exports got less which were around 67% in 1997 and they were 55% in the

year 2008. The thing to be noted here is that, in 2012 the textile mills of Pakistan has

contributed 50% of the total exports of the country.

Gross domestic product (GDP):

The total market value of all the finished products and goods in a country for the given time

period is known as GDP of that product. The industrial sector of Pakistan counts about the

24% of the total GDP. Textile producing industries are the Pakistan’s largest industries

which counts about the 66% of the merchandise exports.

Improvement opportunities for the textile industry of Pakistan:

The measures through which we can check the energy conservation and energy efficiency in

the textile industry are high capacity utilization, technology upgradation, fine tuning of

equipment and the other kinds of re-engineering initiatives. Following are some of the

important energy efficiency measure which are in very much in practice in the textile

industry:

spinning:

 By means of programmed power feature alteration scheme with capacitors.

 Standby of in well-organized internal combustion engine in Ring Frame, Open End and

other spinning rotating machines.

 Photocell for Speediness Frame.

 Via artificial smooth belts in loop surrounds

Weaving:

 Auxiliary of V-belt energies to smooth belt.

 Auxiliary of deep-rooted machineries with innovative ones.

 Humidification plants are than replaced by the fans.

 Practice use of organizer for air pressure.

Processing:

 Additional conservative speedy jet dyeing apparatus with truncated malt percentage jet

dyeing machine.

 Condensation dryer through RF dryer for colouring the product.

 Retrieval and recycling of leftover water in cloth coloring

Printing:

• The printing section commands the general handling industry pursued by the material

coloring and texture dying

Garments manufacturing:

• The articles of clothing assembling fragments creates the most elevated work inside the

material worth chain. Over 75% of the unit contain little measured units.

Knitwear:
• The knitwear industry generally comprises of plants working as coordinated units

(weaving, preparing, and making up offices). The Textile and Clothing Industry has been the

principle driver of the economy of the most recent 50 years as far as remote income and

household occupations creation and this industry will keep on being of fundamental significance

for future development of the economy.

Significance of Study

The research identifies the aspects that have influence on the textile sector deterioration in

Pakistan that features failure in trades further as GDP and developed redundancy within the state.

The examination conjointly investigates the reputation, efficiency and recital of textile sector

wherever we tend to examines the distinction scrutinize by evaluation of knowledge, evidences

and study.

Problem Statement

The purpose of This research is to analyses the necessary issues of textile sector in Pakistan and

therefore the features that effect seriously on its routine that are produced to joblessness, GDP

development and transfers of the textile sector of Pakistan. It sources discount in efficiency of

business as we have a tendency to didn’t understood any consistent progress in our textile

because the crisis sweet-faced by the industry that’s against the trends followed by the textile

concernedly to unemployment, GDP growth, and exports. We have a tendency to additionally

establish the factors for the betterment of those conditions as in future; these crises would cause

immense issues for the country.

Objectives of the Study:

The core objectives of our research are as under

Macro Objectives

Pakistan’s textile sector plays a crucial part in getting foreign exchange, providing services to the

country. Textile sector is backbone of Pakistan’s economy in our report we are going to

emphasize that however energy crisis impacts textile sector of Pakistan, its intensity similarly as

conditions before and when the severity of conditions gone worse that directly hit to country’s

overall economic conditions as a result of the variables determine in hypothesis.

To spot the elements of changing of textile sector and influence on fiscal role, state revenue, and

financial constancy, enhancement in balance of payment, employment prospects, and divergence

of economy.

Micro objectives

The micro purposes of the study are as under

 To define by what means energy crises supports in declining the exports of Pakistan as

far as textile

 To define in what way energy crises supports the increase in unemployment in Pakistan

 To discuss in what manner energy crises supports in declining of Gross Domestic Product

of Pakistan as far as textile

Scope of the study:

Research scope is limited to outcome of energy crisis in textile sector of Pakistan. The

components that are legitimately inclined by contemporary energy crisis are exports that remain

to decline, GDP and Unemployment that goes to higher level. All the previously mentioned

elements are the fundamental issues brought about by the most exceedingly terrible energy crisis
for the country. Numerous tasks begun through the previous and contemporary Government of

Pakistan however the objective is to cover the crisis within a few years as Pakistan persistently

confronting colossal misfortune from economic viewpoint.

Limitations

Following are the limitations to be taken care of throughout the study

 Information discretion strategy in textile sector is considered to be a restriction in

numerous cases though collection of data in various cities

 Interviews, hands-on practices and meetings with organizations employees at various

places are not possible because of the fiscal restrictions so the research is impartially

emphasized on some locations within the country for example Hyderabad and Karachi in

Sindh; Faisalabad, Lahore and Multan Industrial sites in Punjab.

 Facts collection is restrained because of the scope of research so the study is limited from

2015 to the year 2019.

 There are a few apprehensions on prospects of the research and time limitations, a small

sample size has been taken.