ISLAMABAD: The government is set to introduce Advanced Metering Infrastructure (AMI) across five electricity distribution companies (Discos) as part of a major effort to modernise Pakistan’s power distribution system and curb losses estimated at around $1 billion annually, sources close to the Managing Director of the Private Power and Infrastructure Board (PPIB) told Business Recorder.
To support the initiative, the federal government has approached the World Bank (WB) to serve as Transaction Advisor for the project.
Acknowledging the scale of challenges facing the power sector, the Managing Director of PPIB noted that high technical and commercial losses, weak recoveries, outdated metering systems, and limited visibility of electricity consumption patterns continue to undermine sector performance. Transmission and Distribution (T&D) losses currently stand at about 18 per cent of total power supply, translating into an estimated annual financial loss of Rs265 billion. These inefficiencies place a heavy burden on consumers, weaken sector sustainability, and constrain fiscal space for essential investments.
Under the proposed plan, PPIB will hire a private AMI Services Provider (AMISP) to install and operate AMI systems in Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Hazara Electric Supply Company (HAZECO) and Quetta Electric Supply Company (QESCO). The project will be implemented under the Public Private Partnership (PPP) model, in consultation with key stakeholders including the Power Planning and Monitoring Company (PPMC), Power Information Technology Company (PITC) and the respective Discos.
“As this is the first time such an activity is being undertaken under the PPP mode, it has been decided to engage a suitable Transaction Advisor to provide end-to-end advisory services for the successful execution of the AMI transactions,” PPIB Managing Director Shah Jahan Mirza said in a letter to the World Bank’s Islamabad office.
He explained that the Transaction Advisor would be responsible for technical, commercial and legal due diligence; development of the business case; PPP structuring; support in managing the procurement process, including preparation of bidding documents; and assistance through project award, agreement execution and financial close.
The proposal to engage an International Financial Institution (IFI) as Transaction Advisor for the AMI project was approved by the P3A Board in its 41st meeting held on December 16, 2025, under the provision of “Direct Contracting of IFIs as Transaction Advisers” outlined in the Public Private Partnership Authority (P3A) Regulations, 2023.
The engagement period for the IFI/Transaction Advisor is expected to be up to 12 months, with a success-fee-based payment structure. The proposed fee model includes a 5–10 per cent milestone-based payment and a 9–9.5 per cent success-based component, subject to negotiations, to be paid by successful bidders at the time of financial close.
The scope of work, including the Terms of Reference and technical evaluation criteria, has also been shared. It will cover multiple phases: diagnostics and data validation, business case development and rollout planning; transaction structuring and market sounding; procurement support and bid process management; and contract finalisation and financial close.
Citing the World Bank’s extensive experience in similar projects globally, PPIB has formally requested the Bank to submit a proposal for providing transaction advisory services for the AMI rollout in the five selected Discos.
“We believe the World Bank’s involvement will be instrumental in the success of this landmark initiative and look forward to working together to advance the government’s top-priority agenda of power sector modernisation and elimination of system inefficiencies,” sources quoted the PPIB Managing Director as saying.
The World Bank has been asked to submit its proposal to PPIB by January 14, 2026.
Story by Mushtaq Ghumman
