ISLAMABAD: Pakistan has engaged the International Finance Corporation (IFC) as transaction adviser to attract private investment for the installation of 10 million smart meters across electricity distribution companies (DISCOs), marking a major step toward digital transformation in the power sector.
The agreement, signed between the Power Division of the Ministry of Energy and IFC, involves a Transaction Advisory Services Agreement (TASA). Under this arrangement, IFC will conduct a comprehensive techno-commercial assessment and help structure a service-provider or public-private partnership model for the nationwide rollout.
The initiative, first announced in October 2025, aims to mobilize both local and international investors for installing, operating, and maintaining advanced metering infrastructure. The move is part of broader reforms to modernize Pakistan’s electricity distribution system by replacing outdated mechanisms with efficient, technology-driven solutions.
At the core of this transformation is Advanced Metering Infrastructure (AMI), which enables real-time monitoring of electricity consumption, reduces power theft through anomaly detection, enhances billing accuracy, and minimizes human intervention.
According to the Power Division, competitive international bidding has already reduced the cost of smart meters—both single-phase and three-phase—by around 40%, generating significant savings for the national exchequer and consumers alike.
All DISCOs have been directed to ensure that every new electricity connection is equipped with a smart meter, eliminating the issuance of conventional meters. Additionally, existing three-phase meters—primarily used by commercial and industrial consumers—will be replaced within a specified timeframe.
To address persistent issues related to faulty and defective meters, the government is working in coordination with the National Electric Power Regulatory Authority (NEPRA), which has authorized DISCOs to replace malfunctioning units with smart meters under approved investment plans.
The Power Division reaffirmed its commitment to building a transparent, efficient, and consumer-centric electricity system, ensuring improved service delivery and long-term sustainability in Pakistan’s energy sector.
Story by Khaleeq Kiani
