Shopping centres closure after sunset to hit business
By Sabihuddin Ghausi
KARACHI, June 3: From June 15, all shopping centres of Karachi will be closed down after sunset for next three months to save on electricity. For many Karachiites it will be an anti-climax to the consumerism frenzy that was launched amidst media blitz and fanfare in 2001.
The operating and management partner of Karachi Electric Supply Corporation (KESC) attributed the phenomenal spurt in electric demand in the city to the increasing use of electronic goods during the last few years because of liberal bank credit schemes. These include air-conditioners. He was talking to a private TV channel talk show the other day to explain the position of KESC on the current electric power crisis which is worst in the country’s history.
At present the Sindh and city governments are examining the pros and cons of the assessment made of the electric demand and supply situation in the city at a meeting at the Governor’s House last week. KESC finds the Sindh and Karachi city government management sympathetic and hopes to recover from this situation by next summer which otherwise looks hopeless.
Under the plan, according to sources close to the management of privatised KESC, the shopping centres might be allowed to do business after sunset from September 16 onward. By then, the KESC management expects a fall in electricity demand. But then it will not be normal as the management intends to carry out repairing and maintenance work of generators, one after the other which too would warrant load management.
At present KESC is not getting 1,000 megawatt from the Hubco linkup, as Wapda installed only one transformer of 500 megawatt capacity. KESC is getting only 350 megawatt from Hubco and Wapda is trying to provide additional electricity from the Jamshoro linkup. The total availability of electricity remains much below the demand and hence the load management.
In Karachi, the best shopping time is after sunset even in winter. Day time is for work or just to relax at home or do something else. Pulling down shutters of retail outlets at the shopping centres in Pakistan’s biggest city after sunset means putting a brake on consumerism.
By closing down the shopping centres after sunset, KESC expects to save on 75 megawatt of electricity. During the last five years or so, KESC estimates an increase of 600 megawatt in domestic demand of electricity during summer nights mainly because of sale of air-conditioners and other electronic items on easy bank credits.
With no significant increase in power generation and no improvement in transmission and distribution facilities in the city, a situation of frequent breakdowns and a virtual blackout was bound to occur and it did. Karachi has been experiencing uncomfortable summers for the last many years. The KESC management now wants the administration to stagger holidays, curb marriage halls illuminations and that government should itself become a model of austere electric consumption.
Market analysts and traders are now busy estimating business losses from the forcible closure for the next three months. Loss estimates are anywhere from Rs10 billion to Rs80 billion. But the biggest loss is in terms of helpers’ layoff in the shops. Shop owners will not be able to retain their counter service men and others doing odd jobs. Also to be affected by this closure will be rickshaw and taxi drivers and public transporters.
The closure of shopping centres means darkness and deserted streets and roads. This will offer a convenient situation for all the adventurers in the city to look for stray passers-by who will be easy victims. Karachi is already witnessing a very bad law and order situation in terms of rising street crimes. Those in the KESC management hope that the city administration will give some thought to this aspect too.
Consumerism was introduced as a way of life in the year 2001 by former commerce minister Razzak Dawood. He launched a scheme sponsored by National Bank of Pakistan and a foreign electronic company to offer a number of domestic appliances on easy bank credit to the clients. The minister’s advice to the audience was to “do away with this made in Pakistan business”, as the consumer has the rights to get the best at the lowest possible affordable price. The minister wanted every Pakistani household to have domestic appliances like washing machines, televisions, refrigerators, etc.
Little did Razzak Dawood or his cabinet colleagues thought at that time for improving infrastructure facilities, the generation, transmission and distribution of electricity and improvement of roads in cities and above all the lot of the common man in terms of improving his income, jobs creation and enforcement of law and order.
Then in the same year, banks were rolling in liquidity and interest rates had come down historically low. After getting a go ahead signal, one bank after the other started offering a variety of schemes to the clients. Then leasing companies too stepped in.
No wonder then in the last five years, all the banks had offered loans worth more than Rs1.5 trillion to their clients. Quite a big part of these loans is for motor cars, appliances and houses. Also add to it about Rs1 trillion remittances from overseas Pakistanis to their relatives in Pakistan.
Pakistan witnessed an 8.4 per cent growth led by demand rather than investment. There is a demand for electronic goods but not enough investment was made to generate, transmit and distribute electricity. The number of car owners has increased tremendously but roads are bad and so is wear and tear. The oil import bill is rising because of a rise in tariff and also in quantity.
