Generators import plunged to $84.7 million in July 2009 as compared to $207 million in June 2009. However, imports in July 2008 were $110 million.
Pakistan Machinery Merchant Group (PMMG) President Khurram Saigal said dealers had maintained thin pace of import of generators during August also.
He said that dealers had been reluctant in placing new orders as they smelled some positive changes like end of power failures by December followed by approval of 14 rental power plants for generating 1,500 MW.
Khurram was of the view that there was a slight decline in power outages in the last few months. He added that many people had suspended plans to buy generators amid persistent reports of betterment in power supply situation and change in weather.
He said dealers usually place lesser orders during July to August as demand starts falling from September owing to weather change. But last year they made massive imports in anticipation of higher demand in view of massive power breakdowns, he added.
Generators’ import had crossed $1.75 billion in 2008-09 from $1.25 billion in 2007-08 mainly owing to massive devaluation of the rupee against the dollar.
‘The current fiscal year has kicked off with slow import of generators which is quite different from the last fiscal year,’ he said.
He said that generators’ prices on world markets had slightly fallen this year, but the devaluation of the rupee had eaten up its impact on domestic prices.
He further said that rising food prices had also squeezed the buying power of consumers resulting in shrinking demand for generators.
Faisal Jehangir, member of the PMMG, said that government’s propaganda of overcoming power loadshedding by December and change of weather had resulted in slow imports.
He said this year the buying season had started late from March/April as compared to February last year which continued till October 2008. ‘Irrespective of the intensity of loadshedding as compared to last year sales of generators have remained depressed especially in Sindh,’ he added.
However, sales remained normal in interior Punjab where power failures were higher than Sindh. Punjab consumes about 60 per cent of total imports of generators because of hot weather.
He did not agree that prices of generators had come down on world markets but said that prices at the domestic markets were sustaining instead of showing any increase.http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/09-import-of-generators-plunges--szh-03
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