The Role of Economic Indicators in Perspective of Energy Crisis in Pakistan

Abstract

The present study aims to explore the theoretical relationship of the energy crisis with different economic indicators. For this purpose, secondary data have been used for the period of 2000 to 2012. The study focuses only on descriptive analysis of incorporated economic indicators and their conceptual links with the energy crises phenomenon. This study is divided into two parts: the 1st part presents the pre-crisis era for the duration of 2000-2005, and the second part is considered the post-crisis era from the period of 2006-2012. In this study, average values of selected economic indicators are to be used, and on the basis of these average values, try to investigate the expected trend of energy crises in the future. The methodology that exists in the study is horizontal analysis of gross domestic product, inflation, unemployment, exports, imports, gross domestic saving, investment, GDP deflator, government expenditure, and foreign direct investment for the given time period. All these variables are conceptually interlinked with the energy crisis in the period of post-crisis. The study proposed that the Govt. of Pakistan should take initiative to control those factors (demand as well as supply-side management issues that strike as a crisis in energy) for the betterment of the economy of Pakistan.