Pakistan has taken a major step toward modernizing its energy infrastructure by signing a Transaction Advisory Services Agreement with the International Finance Corporation (IFC) to roll out smart meters across 10 million electricity connections, marking one of the country’s largest power sector digitization initiatives.
The IFC, part of the World Bank Group, will serve as transaction advisor and conduct a detailed techno-commercial assessment to support the implementation of a service-provider or public-private partnership model for large-scale deployment.
Major Push Toward Power Sector Digitization
The initiative is aimed at attracting both domestic and international investors to finance, install, operate, and maintain smart metering infrastructure across Pakistan’s electricity distribution network.
This reform is part of a broader effort to digitize the country’s power sector by replacing outdated systems with modern technology to improve transparency, efficiency, and financial sustainability.
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What Smart Meters Will Change in Pakistan
The planned Advanced Metering Infrastructure (AMI) will enable real-time electricity monitoring, helping reduce inefficiencies and improve system control. Key benefits include:
- Real-time tracking of electricity consumption
- Detection and reduction of power theft
- Improved billing accuracy
- Reduced manual meter reading and human error
Authorities have already reduced the cost of smart meters by 40 percent through competitive bidding, easing financial pressure on both consumers and the government.
Mandatory Smart Meter Installation for New Connections
As part of the rollout strategy, all electricity distribution companies have been directed to install smart meters for all new connections, effectively phasing out traditional meters.
Additionally, existing three-phase meters will be gradually converted into smart meters within a defined implementation timeline.
Strengthening Pakistan’s Energy Investment Model
The project is designed to encourage a public-private partnership (PPP) model, allowing private investors to participate in financing and managing the smart metering system. This approach is expected to improve efficiency while reducing operational losses in the power distribution network.
Broader Energy Reform Agenda
The initiative comes amid wider efforts to stabilize Pakistan’s energy sector, improve revenue collection, and reduce circular debt pressures through modernization and digital transformation.
By integrating smart technology into its electricity infrastructure, Pakistan aims to align its power sector with global standards of efficiency and transparency.
