V WAQAR SAJID

V SAHRISH KAUSAR

V BUSHRA KHALID

V ZARA ZUBAIR

V ROMANA MEHMOOD
V Importance of energy
V Current scenario of Pakistan¶s energy crises
V Exhaustion of water in dams
V Fluctuations of oil prices
V Silting process
V Aging of equipments
V Inability of WAPDA and KESC
V Monopoly in the business
V Faulty distribution system
V Pakistan textile industry and clothing sector is
a major contributor to the foreign exchange
earner
V It contributes about 55% to the total export
V Cotton is the cash crop of Pakistan. The quality
of cotton and it's related products of Pakistan
are unmatched in the international market
V 4th textile Asia International Textile &
Garments Machinery show, the
officials quoted that the exports
of textile and textile products of
Pakistan have increased in recent
years.

V The government has offered various incentives

for the industry to upgrade and modernize.
V The Textile Industry is dominated by Punjab.
V 1.5 million people from N.W.F.P are employed in the
industry
V 3% of United States imports regarding clothing and
other form of Textiles is covered by Pakistan.
V In 1999, textile exports were $5.2 billion which
increased to $10.5 billion by 2007
V The share of textile exports in the total exports of
Pakistan has declined from 67% in 1997 to 55% in
2004, as exports of non textile sector grew
V Thetop buyers of Pakistani textile goods are:
U.S.A, E.U, Gulf region, U.K, Hong Kong,
Japan, Korea, Saudi Arabia, Italy, Turkey,
Germany, Norway, France, Canada, Sweden,
Australia etc
V The Economist reports that Pakistan is the:
‡ 4th largest producer of cotton in the world
‡ 6th largest importer of raw cotton
‡ 3rd largest consumer of cotton
‡ 1st largest exporter of cotton yarn
‡ over 1.3 million farmers, out of total of 5 million are
involved in cultivation of this crop
V Pakistan textile industry contributes more than 60% to
the country's total exports which is around $9.6 billion
V The industry of textile contributes approximately 46%
to the total output produced in the country
V In Asia, Pakistan is the 4th largest exporter of textile
products. It's contribution to total GDP is 4.5%
V It provides employment to 34% of the workforce in
the country
V According to the economist intelligence report
of August 2003 for Pakistan the following
observations have been made:
‡ Despite government effort to diversify exports and
widen the industrial base, the industrial sector remains
dominated by the textile industry. Textile sector still
represents 46% of total manufacturing and provides
64% of Pakistan export receipts.
V Thisstrong performance stemmed from two
factors:
‡ Increase in import quotas especially by U.S.A, EU &
Turkey.
‡ Textile industry has invested over $1.5 billion in new
technologies and modernization in the last three years
‡ Efficiency and innovation in textile is the only hope to
get the country out of economic problem.
The two major types of energies used in
textile sector are:
V Thermal energy (required per meter of cloth is 4,500-
5,500 Kcal)
V Electrical energy (required per meter of cloth is 0.45-
0.55 kwh)
V Water

V Electricity

V Natural Gas
V Steam
 

 
  


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Water 100-400 liter 70-100 30-75

Electricity 0.5-2.0 kWh 0.5-1.0 Up to 50%

Natural Gas 0.5-2.0 m3 0.5-1.0 Up to 50%

Steam 5-15 kg 5-8 Up to 47%

 
 
   
 



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Stea generati n 5.3 8.2
C ling water 6.4 --
ater f r s ecific 7.8 30.6
ur se
Pr cess water 72.3 28.3
Sanitary use 7.6 4.9
Miscellane us and fire 0.6 28.0
fighting
The level of energy consumption by the
textile industry was around 1500MW in
August, 2004.
V INFLOW OF FOREIGN DIRECT INVESTMENT

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V Loss of production and export orders

‡ Reduced up to 30%
‡ 60 to 70 % Industrial effect
‡ Contribution decreased to 11 Billion US Dollars

V Increased cost of production

‡ Instant increase in electricity tariff
‡ Increased use of diesel generators
‡ Increased Gas tariff
‡ Daily loss of 1 Billion US dollars
V Impact on the employment level of Pakistan

‡ Job insecurity
‡ Increased unemployment

V Reduction in wages

‡ Massive financial losses

‡ Direct impact on workers with daily wages
V Layoffs
‡ Laid off shifts to reduce cost
‡ Shift contributes 500-700 workers
‡ Higher criminal rate in society

V Reduction in Research & Development

‡ R&D program abolished since July 2004
‡ Low quality production
‡ Unable to sustain Cotton Vision 2015
V Value added production exports
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V Raw Cotton Exports

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V Textile Units to shift abroad

‡ Owners are shifting their businesses to countries like

Bangladesh

‡ 15% of total industry are in a process of shifting

‡ Subsidies provided in Bangladesh for industries