Abstract:
Energy is the backbone of
economic development, and its shortage poses serious
challenges to industrial growth and sustainability. Pakistan
has been experiencing persistent energy crises characterized
by electricity shortages, load shedding, and rising energy
costs, which have adversely affected businesses and
industries. This study investigates the impact of energy
crises on the industrial sector of Khyber Pakhtunkhwa, with a
focus on Peshawar Industrial Estate. A quantitative approach
was employed using survey questionnaires distributed among
100 firms, supplemented by interviews and observations. The
findings reveal that energy shortages have led to reduced
productivity, declining investments, unemployment, increased
operational costs, and closure of several small and medium
enterprises. The results also highlight dissatisfaction among
industrialists regarding government efforts to resolve the
crisis. Statistical analysis confirms a significant negative
relationship between energy crises and industrial
performance. The study concludes that energy shortages are a
major constraint on Pakistan’s economic growth and industrial
competitiveness. Recommendations include consolidating energy
institutions, encouraging investment in renewable energy, and
offering tax relief or subsidies to industries to mitigate
the crisis.
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