KARACHI, Aug 7: Dealers expect a decline in generators’ import by at least 50 per cent in case the government succeeds in realisation of various power and alternative energy projects.

Generators’ markets presently facing a slump in sales as the peak season ended after heavy buying over the last three months till July.

Pakistan’s import bill for generators in 2007-08 surged by 60 per cent to $1.2 billion as compared to $738 million in 2006-07 since the demand for power generating machines remained high owing to load-shedding of lengthy duration.

Karachi Machinery Merchants Group President Sikandar Shahzada told Dawn that the government had been claiming that the load- shedding will be over by next year depending on the recent offers made by foreign companies in new power projects and finding alternative power energy options. “If various power projects start generating from the next year then it will definitely curtail generators’ import,” he said.

He said that the markets currently had surplus stocks, which means that dealers/shopkeepers will have to carry the old stocks for the next six months in their shops as the new buying season will kick off from March next year.

Mr Sikandar said that the devaluation of rupee against the dollar in the last three months had made the imports costlier. For example, it had made an additional burden of Rs3,000 on the cost of import of a 2KVA generator. Some dealers have passed on the impact to consumers, while others have been trying to clear the stocks at old prices.

The substantial increase in diesel prices has plunged the sales of diesel generators of over 30KVA for industrial purpose by 50 per cent. The cost of running a diesel generator now comes to Rs16 per unit as compared to Rs11 per unit few months back.

However, the sale of petrol generators has not dropped very sharply as 95 per cent of them is immediately converted into gas generators soon after its purchase. He said that a petrol generator usually costs Rs86 per litre for one hour, while the cost comes to only Rs6 per hour on running it on gas.

He was of the view that rising food prices and other expenses are other factors that are not

favourable for a good sale of generators.