Academy of Contemporary Research Journal

Impact of Electricity Crisis and Interest Rate on Textile Industry of Pakistan

Hafiz Muhammad Yaseen Afzal
Punjab Group of Colleges, Daska, Pakistan

Abstract:
The aim of this study is to estimate the impact of electricity crisis and interest rate on the production of Pakistan textile industry. The Pakistan textile industry contributes more than 60 percent of total export and largest manufacturing sector of Pakistan’s industry. This sector faces crises of electricity and interest rate due to which its growth decreases. This study estimates the relationship between the production of textile, electricity crises and interest rate. In order to check the impact of electricity crises and interest rate on the production of textile industry, multiple regression analysis is used upon the 11 years data of electricity, interest rate and textile industry. After investigation it was found that the Pakistan’s textile industry negatively affected by electricity crisis and interest rate. The textile industry can once again be brought back on attractive track if government takes serious measures in removing the electricity crisis and normalizing the supply of electricity to the textile industry for increasing the textile growth of the country.

Keywords: Textile industry; Exports; Electricity crisis; Interest rate; Production;