Energy short­age leads to "Gen-set Econ­omy"

The Pak Banker - - NATIONAL - Ja­hangir Hayat

Present energy short­age is lead­ing to "Gen-set Econ­omy". It was stated by Pres­i­dent Pak-China Joint Cham­ber of Com­merce and In­dus­try, Shah Faisal Afridi.

He said that power short­age has made the man­u­fac­tur­ing sec­tor of Pak­istan de­pen­dent to the Gen­er­a­tors and self gen­er­a­tion of elec­tric­ity has raised the cost of pro­duc­tion due to the in­creased im­port bill of fur­nace oil and the ma­chin­ery used for al­ter­na­tive source of elec­tric­ity. "With the ev­ery im­port bill rise, the econ­omy faces im­bal­ance in trade", added Afridi. He said that ac­cord­ing to some of­fi­cial re­ports the coun­try paid a to­tal of $6.69 bil­lion for the im­port of petroleum prod­ucts and fur­nace oil dur­ing the July-Nov 2014-15. The amount was higher than the im­port bill of the same pe­riod last year which was around $6.43bn.

He in­formed that the Im­port bill of power gen­er­at­ing ma­chin­ery also rose by 50 per­cent this year as com­pared to the last year. He men­tioned that im­port bill of power gen­er­at­ing ma­chin­ery stood at $283.706 mil­lion at the end of first quar­ter of FY 15 reg­is­ter­ing 49.83 per­cent in­crease over the im­port bill of $189.351 mil­lion in same pe­riod of FY 14." Gov­ern­ment was con­tin­u­ously claim­ing ad­di­tion of sig­nif­i­cant elec­tric­ity in na­tional grid dur­ing last year, but the sta­tis­tics in­di­cate that in­dus­tries are still strug­gling to pre­vail over energy short­ened re­lated wor­ries.

He said that man­u­fac­tur­ers are left with no other op­tion than de­vel­op­ment of own sources of energy sup­ply through in­vest­ment in gen­er­a­tors.

The case for such in­vest­ment be­comes greater the larger the time losses due to out­ages and the stronger the ex­pec­ta­tion that rel­a­tively high lev­els of power in­ter­rup­tions will per­sist in the long run, he added.

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