Pakistan has taken a major step toward digitizing its power sector by signing a Transaction Advisory Services Agreement with the World Bank Group-backed International Finance Corporation (IFC) to roll out smart meters for 10 million electricity connections.
Under the agreement, the IFC will act as transaction advisor and carry out a comprehensive techno-commercial assessment to support a service-provider or public-private partnership model for large-scale deployment.
The initiative is aimed at attracting both local and international investors to finance, install, operate, and maintain the smart metering infrastructure.
The move is part of efforts to digitize Pakistan’s power distribution system, replacing outdated infrastructure with modern technology to improve transparency, efficiency, and financial sustainability.
Smart meters, also known as Advanced Metering Infrastructure, will allow real-time monitoring of electricity usage, reduce theft through detection systems, improve billing accuracy, and minimize manual intervention. The government has already reduced the cost of smart meters by 40 percent through competitive bidding, lowering the financial burden on both the state and consumers.
As part of the rollout plan, all distribution companies have been directed to install smart meters for every new connection, eliminating the issuance of traditional meters going forward.
In addition, all existing three-phase meters will be converted to smart meters within a defined timeline.