Complete shutdown of power supply in Karachi's five industrial estates for over six days caused an aggregate loss of $80 million in exports. And even after six days, supply to 60 percent of the industrial units remained suspended.
According to a Recorder Report, electricity supply to SITE, Korangi, North Karachi, Federal 'B' Area, and Landhi industrial estates was suspended on Sunday (July 30) on the plea of heavy rains.
The daily production loss sustained by SITE area alone comes to around $8.2 million, while the loss in North Karachi industrial estate has been computed at $1 million a day. Similarly, the Korangi industrial estate lost half of its daily production of Rs 250 million. According to SAI chief Amin Bandukda, a day's closure of industrial units in SITE results in production loss of Rs 2 billion, and export losses of $8.2 million. Power supply to some parts of SITE has, meanwhile, been only partially restored.
The extent of loss sustained by Karachi's five industrial estates can be gauged from the fact that the daily production in North Karachi's industrial estate alone comes to around Rs 200 million, and export loss amount to around $1 million. As if the crippling power shutdown was not enough, 80 percent of telephone lines in North Karachi that houses around 2,500 medium-sized industrial units, remain out of order, while badly damaged roads have hampered movement of goods and people.
According to one estimate, industry has been sustaining a loss of Rs 8.8 million per hour due to the power crisis, including frequent breakdowns and load-shedding.
Pakistan's premier port city, Karachi is home to more than 65 percent of the country's industry and 80 percent of its finance. One of the main causes of its chronic power supply suspensions and breakdowns is its highly defective and inefficient transmission and distribution network.
Although Wapda has inducted another 100 megawatts of electricity in KESC's network as a stopgap arrangement, this is unlikely to solve the problem as the corporation's transmission system needs drastic revamping, and is unable at present to take additional load.
Secondly, the current load demand in Karachi is for an additional 250 megawatt a day, which Wapda may not be able to meet as its system is short of power due to increased load in its own service area. The trouble has resulted essentially from inaction by successive governments despite repeated warnings sounded by policymakers that Karachi will suffer power shortages of 394 megawatts in 2005 and of 506 megawatts in 2006.
According to the latest projections, the city will need an additional 1,300 megawatts of electricity in 2007 to play its role in achieving the high GDP growth targets set by the government. The plans formulated by the government for tapping renewable and non-renewable sources of energy essentially remain paper work only.
There is no visible movement on the ground. Meanwhile, the country's annual energy deficit has been rapidly mounting, and according to one projection it will be at least 1,000 megawatts from 2007 onwards. Secondly, the country's annual demand for electricity is growing by six to seven percent per annum under pressure of industrialisation and urbanisation, and by 2012 it will need an addition of 5,000 megawatts.
All this constitutes a very serious crisis for the country. The government must initiate urgent corrective measures to tide over the growing energy shortfall. Keeping power supply suspended for six long days, especially in the industrial hub of the country, was simply criminal, to say the least.
The government should order a judicial inquiry to pinpoint the causes and identify the persons responsible for this colossal loss to the country. Secondly, it should arrange, on an emergency basis, the revamping of power distribution network in Karachi, particularly in its industrial areas, to forestall a repetition of the production loss sustained during six days of power supply suspension.
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