KARACHI, April 24: Anticipating good sales in view of intense load-shedding in the coming months, industrialists and traders intensified import of power generating machines between January and March.

Import of power generating machines went up to $90 million in March 2012 as compared to $85.5 million in February 2012 while it was just $63.5 million in January 2012, Pakistan Bureau of Statistics figures revealed.

Total imports in July-March 2011-2012 jumped by 6.15 per cent to $826 million as compared to $778 million in the corresponding period of last fiscal year.

Traders said that a sizable number of generators would be sold in interior of Sindh and Punjab due to long duration of load-shedding amid hot weather.

Import of power generating machines plunged by 17 per cent to $1.435 billion in July-June 2009-2010 from $1.748 billion in July-June 2008-2009.

“There is hardly any industry which does not have a stand-by generator,” said chairman FB Area Association of Trade and Industry (FBATI), Masroor Ahmed Alvi.

“Even foreign buyers ask local exporters first regarding stand-by arrangement of generators for timely shipment of goods.”

Big industries have heavy-duty machines but small/medium sized units have also purchased 40-200 KVA stand-by generators. The per unit cost of running a generator on diesel is more than double than the KESC tariff.

Industrialists either import generators on their own or purchase from the local market.

Site Association of Industry Mohammad chairman Irfan Moton said that the trend of purchasing stand-by generators by small/medium sized units is gaining ground despite the fact that diesel generators cost Rs28-30 per unit as compared to gas generators at Rs5.5 per unit while KESC power costs Rs9 to Rs 10 per unit.He said that despite high cost of production on using diesel generators, small and medium sized units are purchasing generators to stay in the business and to meet the additional work order of big exporters who cannot afford to lose their foreign buyers.

Irfan said that the government should tap alternative energy resources as India uses 53 per cent of coal in meeting its energy requirements as compared to 73 per cent by China.

Karachi Machinery Merchants Group chairman Sikandar Shahzada said people of Punjab and Sindh, especially in interior areas, would surely lift more generators this year as they cannot sustain long duration of load-shedding.

He, however, said so far sale in Karachi is not extra-ordinary as high cost of living has reduced the purchasing power of consumers.

Sikandar said that prices of generators have increased substantially especially after imposition of taxes and duties whose cumulative impact comes to over 30 per cent as compared to seven to eight per cent a year back.

For example, a 2.5 KVA generator of good quality Chinese brand now costs Rs32,000-34,000 as compared to 25,000-26,000 a year back due mainly to imposition of 16 per cent GST and other levies.

One KVA generator now sells at Rs17,000-18,000 as compared to Rs14,000 a year back. He said China holds a lion’s share in one to 10 KVA generator.

Pakistan Machinery Merchants Group President Khurram Saigol said customers usually arrive in the market in April, but this year their presence has not improved so far.

Khurram said besides taxes and duties on import of generators the devaluation of rupee against the dollar has also made imports costlier.

He said the arrival of smuggled generators is increasing due to high rate of duties and taxes on imports of generators.

To provide some relief to consumers, he urged the government to remove 16 per cent GST on generators import as long as the country is facing power crisis.