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WAQAR SAJID
SAHRISH KAUSAR
BUSHRA KHALID
ZARA ZUBAIR
ROMANA MEHMOOD
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Importance of energy
Current scenario of Pakistan¶s energy crises
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Exhaustion of water in dams
Fluctuations of oil prices
Silting processAging of equipments
Inability of WAPDA and KESC
Monopoly in the business
Faulty distribution system
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Pakistan textile industry and clothing sector is
a major contributor to the foreign exchange
earner It contributes about 55% to the total export
Cotton is the cash crop of Pakistan. The quality
of cotton and it's related products of Pakistan
are unmatched in the international market
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8th textile Asia International Textile &
Garments Machinery show, the
officials quoted that the exportsof textile and textile products of
Pakistan have increased in recent
years.
The government has offered various incentives
for the industry to upgrade and modernize.
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The Textile Industry is dominated by Punjab.
1.5 million people from N.W.F.P are employed in the
industry
3% of United States imports regarding clothing andother form of Textiles is covered by Pakistan.
In 1999, textile exports were $5.2 billion which
increased to $10.5 billion by 2007
The share of textile exports in the total exports of Pakistan has declined from 67% in 1997 to 55% in
2008, as exports of non textile sector grew
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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
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Pakistan textile industry contributes more than 60% to
the country's total exports which is around $9.6 billion
The industry of textile contributes approximately 46%
to the total output produced in the country In Asia, Pakistan is the 8th largest exporter of textile
products. It's contribution to total GDP is 8.5%
It provides employment to 38% of the workforce in
the country
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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
68% of Pakistan export receipts.
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This strong 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 toget the country out of economic problem.
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The two major types of energies used in
textile sector are:
Thermal energy (required per meter of cloth is 4,500-
5,500 Kcal)
Electrical energy (required per meter of cloth is 0.45-0.55 kwh)
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Water
Electricity
Natural Gas
Steam
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ResourceConsumption
(per Kg of Fabric Processed)
Optimum
Consumption
Saving Potential
%
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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Water Usa e I Textile Mills
r se erce t water se
C tt textile Sy thetic textile
Stea generati n 5.3 8.2
C ling water 6.4 --
ater f r s ecific
ur se
7.8 30.6
Pr cess water 72.3 28.3
Sanitary use 7.6 4.9
Miscellane us and fire
fighting
0.6 28.0
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The level of energy consumption by the
textile industry was around 1500MW inAugust, 2008.
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INFLOW OF FOREIGN DIRECT INVESTMENT
0
10
20
30
40
50
60
70
2 004 -200 5 2 0 0 5-2 0 0 6 200 6-20 07 2 00 7-2 00 8
Column3
Column2
Column1
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Loss of production and export orders
Reduced up to 30%
60 to 70 % Industrial effect Contribution decreased to 11 Billion US Dollars
Increased cost of production
Instant increase in electricity tariff Increased use of diesel generators
Increased Gas tariff
Daily loss of 1 Billion US dollars
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Impact on the employment level of Pakistan
Job insecurity
Increased unemployment
Reduction in wages
Massive financial losses Direct impact on workers with daily wages
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Layoffs Laid off shifts to reduce cost
Shift contributes 500-700 workers
Higher criminal rate in society
Reduction in Research & Development
R&D program abolished since July 2008 Low quality production
Unable to sustain Cotton Vision 2015
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Value added production exports
0
200
400
60 0
800
1000
1200
1400
1600
2006-2007 2007-2008 2008-2009
Ready Made Garments Growth Rate (-18.22)
Synthetic Fibrics Growth Rate (-39.67)
Cotton yarn(-5.72)
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Raw Cotton Exports
0
50
100
150
200
Value (M.$)
Qty. (M. Kg)
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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