Import of power generation machinery posted an increase of 6 percent during July-May FY14 over the same period of last fiscal year, mainly due to power crisis in the country. Importers said the country is facing a massive power shortage for last few years and the government has failed to resolve the power crisis. Continuing power shortage has compelled the general public, industrialists and exporters to acquire their own power generation plants/machinery to fulfil their requirements.
"Presently, industrialists are major buyers/importers of power generation machinery to produce their own electricity as the energy crisis is directly hurting the industrial production and export, resulting in huge losses and unemployment," they added. According to Pakistan Bureau of Statistics (PBS) the import of power generating machinery rose to $956 million in July-May FY14 compared to $902 million in the corresponding period of FY13, depicting an increase of 6 percent or $54 million in first 11 months of FY14.
Month-on-month basis, import bill of power generation machinery for May 2014 rose by 22 percent to $102 million as compared to $84 million in the same period of last fiscal year. Power generation machinery imports during May 2014 compared to April 2014 also posted an increase of 51 percent as some $65 million worth machinery was imported in April 2014.
Importer said that bulk of power generating machines is being imported from China as its generators are available in all qualities and cheaper than other branded machines, therefore general public prefers Chinese generators. "We are expecting that import of power generating machinery may witness some raise in coming months owing to summer and persistent long power outages across the country," importers said. Since 2004-05, the country is witnessing a massive surge in the demand and import of power generation machinery. During FY13, the country''s power generation machinery import stood at $977 million against $1 billion in FY12, depicting a decline of 6 percent.