Energy Crisis and Performance of Industry of Pakistan: An Empirical Study of KSE Listed Companies

Abstract

This study investigates the impact of Energy crisis on the financial performance of the different industries in Pakistan. In the study Performance has been measured by Return on Assets ratio (ROA).Performance of all the KSE listed companies from five major industries of Pakistan has been observed for the period of six years (2004 to 2009). For Descriptive and paired sample mean comparison, sample has divided into two, pre and post energy crisis. Results of the study suggested that performance of the companies have decreased significantly because of energy crisis in Pakistan. Industry wise analysis revealed that Textile, Cement and Engineering Industries badly affected by energy crisis. However impact of these crises on Sugar and Chemical industry is insignificant.

Keywords: Energy Crisis, Performance of Industry, Karachi Stock Exchange, Pakistan