Pakistan’s smart metering rollout has moved forward after the Ministry of Energy’s Power Division signed a Transaction Advisory Services Agreement with the International Finance Corporation to support large-scale deployment across the national grid.
IFC will serve as the transaction advisor and conduct a techno-commercial assessment for a service-provider model or a public-private partnership framework covering 10 million single-phase connections. The government says the move aims to attract local and international investors to install, operate and maintain smart metering infrastructure.
The agreement places IFC, a member of the World Bank Group, at the centre of the advisory process for one of Pakistan’s biggest power-sector digitisation efforts.
Officials say the programme is part of a wider plan to modernise the electricity distribution network by replacing older systems with digital infrastructure designed to improve transparency, efficiency and long-term financial sustainability.
Smart Meters Set to Drive Digital Power Reform
Advanced Smart Metering Infrastructure (AMI) sits at the centre of the reform programme. Smart meters give utilities real-time visibility into electricity consumption, help reduce theft through anomaly detection, and improve billing accuracy and recovery rates.
The system also cuts manual errors by reducing human involvement in meter reading and billing. As a result, smart meters have become a key tool in the government’s effort to make the power sector more consumer-focused and operationally efficient.
The government has directed all distribution companies to install smart meters for every new electricity connection. New applicants will no longer receive traditional meters.
The ministry has also ordered distribution companies to convert all existing three-phase consumer meters to smart meters by a defined deadline. This requirement aims to bring commercial and industrial consumers fully into the digital billing and monitoring system.
The ministry used an international competitive bidding process to cut the price of single-phase and three-phase smart meters by 40 per cent.
Officials described that reduction as a major saving for the national exchequer and, ultimately, for consumers. The ministry also said it had worked with the National Electric Power Regulatory Authority to accelerate the replacement of faulty and defective meters with smart meters.
NEPRA has authorised distribution companies, through recent determinations on investment plans, to replace defective meters with smart meters.
That step could speed up the nationwide transition to a fully digital grid. The government says the broader goal remains an efficient, transparent and reliable power sector that delivers better service to electricity users across Pakistan.
