Abstract:

Energy Crisis in Pakistan is one of the severe challenges the country is facing today. Electricity, gas, water, fuel is essential part of our daily life and its outage has severely affected the economy and overall living of ours. Thousands have lost their jobs, businesses; our daily life has become miserable. Pakistan is currently facing up to 18 hours of electricity outage a day, is expected to face more if not dealt with in time. The purpose of this study is to analyze the nature of energy crisis and to describe the effects of these crises on textile and sports industries, how these crises effect the daily production of these industries. This study is descriptive in nature. We have done our best to conclude and sketch up some recommendations in the light of identified hurdles in the way of implementing the appropriate solution to our problem. Our study finds the relationship between energy crisis and production of textile and sports industries and our study shows a negative relationship between energy crisis and production in a sense that as energy crisis increases our production is effected and it lowers down and cost of producing goods also increases. We have formulated hypotheses based on our research study that describes the relationship of certain variables that are linked to energy crisis.

ENERGY CRISIS AFFECTING BUSINESS IN PAKISTAN

LITERATURE REVIEW:
Energy crisis is great bottleneck in supply of energy resources to economy. Energy crisis is an economic problem caused by dwindling supply of energy at an increased price. Energy crisis has a direct link with the development of the country. With the increase in GDP demand in energy has also grown rapidly. Global oil prices have shown an almost steady rise from almost 2003 (Bacon, 2005). Energy is one of the most critical inputs to several variety of production function. And we have very limited ability to replace it by other means in the short-run, without having serious setback to our GDP.( Afia Malik, Etzaz Ahmad, 2007) Several works in shapes of articles, theses, books and magazines have been done to enhance the reduction of energy consumption and to enlarge energy crisis so the significance of the energy should be realized. Economic crisis is ebbing the industrial world. It is leaving the adverse effects on the entire world. So it is very mandatory to save electricity. He deplores the frittering of energy on terms of electricity. (Karen, 2008). Old appliances with energy efficient models in order to save energy or electricity.( Dawood,2007). People should change their lives in order to reduce consumption of energy (Andrew, 2010) Pakistan has been experiencing worst energy crisis of its history since 2007. The situation is getting worse with each passing year. It all began with energy shortfall that gradually turned into deficit in other forms of energy such as gas and petroleum products when both households and firms restored to these alternative sources of energy.Electricity in Pakistan is generated, transmitted, distributed and retail supplied by the government of Pakistan. That is, it has complete monopoly over the retail andnear total monopoly over production directly and complete control indirectly by controlling the private sector. This leads to corruption, nepotism, favoritism, personal gains and political short termism with not regard to planning for future.

Pakistan is lagging behind in this area despite of rich reserves of raw energy, but there is dire need for the investment and proper use of these reserves for driving the wheel of economy (Rehana Siddiqui, Muhammad Nasir, 2008). The ratio of energy consumption to income is not constant. Energy intensity tends to increase with income (Rossana Galli, 1995). Effective energy use is a skill that is learned through experience in specific situations. The most widelyaccepted theories of teaching and learning in this country are based on the idea that people construct meaning continually and incrementally, experimenting and building on what they know already (Kolb 1984,Chaiklin and Lave 1993). After thoroughly suffering from the electricity shortage and being humiliated completely, reacting in a typical Pakistani way that is to analyze only after a crisis has set in rather than before, we decided to look into this matter at depth. To ourutter surprise we found that while there were many articles passionately discussing various political issues around this matter, there was hardly any objective analysis in a dispassionate manner. Most crucially there is failure to understand this crisis in the broader terms of energy shortage.Electricity is the most convenient form of energy available to Human beings. This energy is fundamental to human wellbeing and prosperity. The strong correlation between the availability of electricity and the level of human social development has been known since at least 1895 with the electrification of Niagara Falls with the then new poly phase alternating current (AC) technology invented by Nikola Tesla. Therefore the energy crisis is a crisis of human development. (Awaam, 2008). Energy is part and parcel of every aspect of life as well as backbone of a countrys economy. Pakistan is lagging behind in this area despite of rich reserves of raw energy, but there is need for the investment and proper use of these reserves for driving the wheel of economy. Present energy scenario of the country, its available resources and their potential towards the solution are addressed in this paper. Statistical data in this work provides ease to policy makers in deciding major investment area to take the country towards prosperous future. A lot of partial projects like Independent Power Producers (IPPs) and Rental Power Plants (RPPs) have been made and invested but all in vain rather burden on economy. The sequence of investment field is also proposed which will pay back more in the long run (A.GBhatti, A.R Bhatti, 2012).

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