Do You Need A Generators Market In Pakistan?

Import of power generating machines plunged by 17 per cent to $1.435 billion in July-June 2013-2014 from $1.748 billion in July-June 2012-2013.“There is hardly any industry which does not have a stand-by generator,” said CEO Damaan Engineering Mr.Zubair Ahmad Lashari.“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 WAPDA tariff.Industrialists either import generators on their own or purchase from the local market.

Zubair Ahmad Lashari 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. 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.

Lashari 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 17 per cent GST on generators import as long as the country is facing power crisis.