NEWS
Quick Access
Pakistan power shortage hits steel, textile mills
(Reuters)

5 January 2008
ISLAMABAD - Pakistan has shut all steel melting units across the country for two weeks and ordered hundreds of textile mills to reduce operations to cope with an acute power shortage, a government official said on Saturday.

All business and shopping centres have also been told to close early.

Pakistan is suffering a power deficit of up to 3,600 MW due to low water levels at major reservoirs and damage to two main power lines inflicted during the violence that erupted after opposition leader Benazir Bhutto was killed on Dec. 27.

”All steel melting units will remain closed for two weeks,” said Tahir Basharat Cheema, a senior official at state-owned Pakistan Electric Power Company. “The government has also told textile mills to close operations for five hours in the evening.”

Cheema said water levels have fallen by up to 32 percent in comparison to last year’s level, badly effecting the country’s generating capacity.

Pakistan’s current installed capacity is around 19,845 MV, of which around one-third is hydro-electric. Much of the rest is thermal, fuelled primarily by gas and oil.

 $2 billion in losses

Two main power transmission lines were blown up on Jan. 1 in Sindh, creating a shortfall of 1,000 MW. Cheema could not say whether the sabotage was linked to the violence that shook the country after Bhutto’s assassination.

Nearly 50 people were killed in the violence, mainly in Bhutto’s home province of Sindh, with initial government estimates showing almost $2 billion in losses to the economy in the first two days.

Cheema also blamed independent power producers (IPPs) for the current power crisis.

“IPPs have not come to our expectations and out of 5,800 MW of confirmed capacity, they have been able to give us only 3,800 MW on average.”

Private power producers were also affected by violence in recent days. Railway engines and trains were torched during the violence, disrupting the transport of fuel to industrial and power units across the country.

Cheema said most IPPs were running fuel stocks below the required minimum of 21 days.

The closure of steel units and reduced working hours at textile mills will help save 850 MW of electricity. Cheema said after the repair of the power lines, load-shedding will make up for the remaining shortages.

A steel mill owner in the capital Islamabad, Salman Arif, said, the measure would hurt about 100 steel melting units and 500 auxiliary re-rolling units across the country.

“There will be huge losses to this industry.”

 

OTHER STORIES
  Mohammed Issues Decrees Reorganising State Firms
  IMF’s Lipsky Sees Sluggish Recovery
  Saudi Set for Asia Crude Benchmark
  Punjab Opens Up for ‘Global Investment’
  Global Recovery will be Patchy in 2010; Asia and ME to Lead Growth
  Emaar India Unit Plans to Sell Shares: Alabbar
+ MORE STORIES

Khaleej Times Services
© 2009 Khaleej Times, All rights reserved