KARACHI: The prime minister’s announcement that loadshedding will end by November has made the importers/dealers of power generators uncertain about their future business prospects.

The import bill for generators hit an all-time high of more than $3 billion in 2016-17 from $1.8bn a year ago. However, their imports plunged in the first two months of the current fiscal year, data released by the Pakistan Bureau of Statistics revealed.

They believe the government, which had failed to honour its earlier commitment to end loadshedding within the first few months of its current term, now appears set to overcome the power crisis to win votes in the election next year.

Imports of power-generating machines decreased 19 per cent on an annual basis to $494 million in July-August. The year-on-year increase in their imports was 175pc in the first two months of 2016-17.

Sikandar Shahzada, who owns Sikandar and Company at the generator market on Shahrah-i-Liaquat, said importers are anxious because of the expected end of loadshedding in November.

Sales plummeting as blackouts recede

He said the duration of loadshedding in many areas of Karachi has drastically come down in recent months while some neighbourhoods also get uninterrupted power supply for 24 hours.

“Sales of generators in the city are gradually coming down. In rural areas, rising use of solar panels has emerged as a threat to our business,” he added.

He said the recent ban on high-rises will further hit the sales of 100-250kVA generators, which are used for stand-by power supply for 12-storey buildings.

Dealers in F.B. Area said they are offering a Rs5,000 discount on a 6kVA Chinese generator carrying an original price tag of Rs78,000. They also offer a Rs1,000 discount on every small portable generator.

Pakistan Machinery Merchant Group Chairman Khurram Saigal said generators required for ongoing China-Pakistan Economic Corridor projects are still being imported. But the imports of generators for domestic use have slowed down due to thin demand, he added.

The end of loadshedding is definitely good news for consumers, but it may prove devastating for importers/dealers of generators, he said.

Importers and traders will analyse the market situation in November and December, which is when they place orders for the next buying season that lasts from March to August, he noted.

He said generator purchases by the industrial sector are already in decline due to no loadshedding in industrial areas. He claimed that demand for generators in the big cities of Punjab has fallen 70-80pc following a reduction in long duration loadshedding.

Imports of generators rose to $1.84bn in 2015-16 from $1.37bn in the preceding fiscal year. It was $1.1bn in 2013-14 and $959m in the year before.

Published in Dawn, September 24th, 2017