The core purpose of the study is to analyze the effects of the energy problems on the
competitiveness and performance of major selected Pakistani industries. The data used
for the study is from the years 1999 to 2015. The industries used in the research are
Leather, Textile, Tobacco, Pharmaceutical, and Sugar. The Balassa Index is firstly used
to compute the competitiveness of the above-mentioned industries and reveals that except
tobacco industries all other industries sustain a comparative advantage even before and
during the crisis regime. Secondly, a GMM estimation is done to analyze the effect of
energy problems on the performance of the companies. The conclusion of the paper
suggests that the supply of energy has a crucial role in enhancing the net return and
competitiveness of the industrial sector in Pakistan.
1-Malik Saqib Ali Assistant Professor,Department of Economic, National University of Modern Languages Islamabad, Pakistan.2-Sana Zaigham Visiting Faculty member, Department of Commerce, Federal Urdu University of Arts and Sciences, Islamabad, Pakistan.
Energy Crisis, Comparative Advantage Industries, Net returns