[Type the document title] [Year]

SAJID HASSAN BBA, 6TH SEMISTER ROLL NO:84

THE IMPACT OF ELECTRICITY CRISES ON SMALL AND MEDIUM ENTERPRISES (SMEs):

SME (small and medium enterprises) play a key role in the growth of Pakistans economy. Approximately 90% of all enterprises constitute on SMEs and their share in our GDP is about 40%. Some of these SMEs are manufacturing identical goods and other consumers goods like wheat and sugar mills, bakeries, restaurants, poultry forms, small scale production units of auto parts etc. While others are giving services like clinics, laboratories, real estates, educational institutes etc. Above paragraph is a little introduction of SMEs. Now we concentrate toward power crises that are creating worst affect on our industrial sector especially on SMEs. Pakistan now a days having a big electricity crises. A big gap between the demand and the production of electricity has been found. Quantitatively speaking demand is almost 16000MW but supply is between 13000MW to 14000MW. This creating shortage of power resulting a big pressure on the production of SMEs. SMEs now thinking to shift their business to another country. Majority of businesses have been wound up due to outage of plenty of hour and even half a day. They cant run their business because loadsheding has stopped their productions, their equipments and machineries are being deteriorated due to unscheduled sudden outage. Consequently they cant continue their product distribution and most of the businesses who exports their product are thinking how to fulfill the requirement and how to deliver product on time. They dont want to switch to another power resource like generator b/c if they switch it would impossible to compete in market because they know what the state of competition in both domestic and international market. Switch to other source put directly affect on the cost of the product. They are unwilling to increase

[Type the document title] [Year]

the price of product but the cost has to cover. If they increase the price their product consumption become lower because of the competitors low priced product is available. Consequently their sales will be down and it will be difficult to keep business established because they have to pay their a/c payables, utility bills etc. Similarly service sector is having great trouble for doing operations. Suppose a medical laboratory who performs different functions like takes blood samples and find out blood group, offer services of X-Rays, MRI, ultrasound and other tests. These all functions are performed with power sensitive machines means these machines get deteriorated by the sudden outage or laboratory cant operate without electricity then it unwillingly switch toward generator which is costly then laboratory increases its services charges and that act become the barrior for growth of business.