Loadshedding in Karachi has receded in the recent years which caused the generator market to collapse. But the latest news reveals a dispute between K-Electric and the Sui Southern Gas Company Ltd (SSGC) which has reignited the generator market all over again.
Prices in generator market are going up every minute like crazy, receiving a triple boost from a sudden spike in demand and a simultaneous devaluation of the rupee, as well as a 10pc imposition of regulatory duties on imports.Buyers have increased in the last four to five days since loadshedding in many of K-Electric’s exempted areas has resumed.
Sikandar Shahzada, a retailer of generator market reported how this loadshedding in Karachi has ignited the sale. He is selling now at least 40-50 units a day which was around 8-10 per day, five days ago. According to Sikandar, traders had already slowed down imports of one KVA to 10KVA generators by at least 30pc as loadshedding came down to zero in the areas where recoveries were good.
That situation has now reversed and residential generator demand has increased due to the exams of ninth and 10 classes and O level exams are also about to start. Besides, many buyers are stocking power gadgets fearing breakdowns in Ramazan starting at the end of next May, Sikandar said.
Most of the residential consumers are interested in buying 1 to 10 KVA generators on which most of the retailers have increased prices by 10pc already, he said.
Pakistan Bureau of Statistics (PBS) reports that country’s generator import bill has gradually increased by 19pc to $1.77 billion. High load bearing standby generators for high rise projects are still arriving as many projects are in their final stage of completion while others have already been completed and there would be no shortage of generators as markets had unsold stocks.
One of the largest importers of generator sets in the country, Khurram Saigal says that the sales have been impressive in the last five days, which has caused the prices to climb by almost 30pc.