KARACHI: Smelling higher demand, traders imported 88 per cent more power generating machinery worth $141 million in February 2010 as compared to $75 million in January 2010.
Imports in February 2010 were higher by 17 per cent as compared to February 2009.
According to figures released by the Federal Bureau of Statistics (FBS), import of generators in July-February 2009-2010 fell by eight per cent to $1.1 billion as compared to one billion dollars in the same period in the last fiscal year.
Many people are of the view that traders might have maintained stocks for peak season when massive power failures hit the country and demand increases.
Currently they are releasing stocks in limited quantity despite higher demand and increase in imports.
Karachi Machinery Merchants Group chairman Sikandar Shahzada told Dawn on Monday that consumers are now thronging markets after ascertaining that the upcoming months are more testing in view of continuous shortfall in the existing power generation capacity.
Despite rising imports, increasing demand of generators has outstripped supplies, thus causing shortage of machinery in the market.
The price of generators has already gone up by 10-20 per cent, he said.
No serious efforts have been made by the government to install new generating units or improving the existing generation capacity.
People prefer purchasing mostly one KVA to six KVA machines for residential, shops and office usage.
However, Sikandar said demand for generators of 100-500 KVA, being used by the industrialists mainly, has failed to pick up pace either because of low productivity or due to improved power supply from the KESC.
Out of total imports, around 80 per cent arrive from China while the rest comes from US, Europe, Japan, etc.
Since intensity of load-shedding in Punjab is more severe than in Karachi, around 60 per cent of total generators imports is made in the heavily populated province.
In the last one year, about 20 per cent devaluation of the rupee against the dollar made imports costlier, making a negative impact on local prices.
“Imports are likely to further swell in the coming months as consumers and even importers see no apparent signs of any end or reduction in power failures,” Sikandar said.
The high prices of generators definitely cost consumers dearly at a time of rising cost of living caused by surging food inflation and utility bills cost.
In the absence of any permanent solution to lingering power crisis, consumers under some compulsion are now taking the hit to bear the burden of buying generating machines at any cost, he said.
Pakistan Machinery Merchants Group president Khurram Saigol urged the government to remove five per cent customs duty on import of generators as long as the menace of loadshedding exists and does not resolve permanently.
He said buyers have already turned up to markets. Sale usually picks up pace from April-end every year, but this time, sales are on the rise for the last one week, thus creating a shortage of generators in the market.
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