The federal government is planning to install Advanced Metering Infrastructure (AMI) in five power distribution companies to modernise the electricity distribution system and curb transmission and distribution losses, which are estimated to cost around $1 billion annually, Business Recorder reported, citing sources.
To support the initiative, the government has approached the World Bank to serve as transaction advisor for the project. The move comes as the power sector continues to face operational and financial pressures due to high technical and commercial losses, weak recoveries, outdated metering systems, and limited visibility of electricity consumption.
Transmission and distribution losses currently stand at about 18% of total power supply, translating into an annual financial loss of approximately Rs265 billion. These losses continue to strain the sector, add pressure on consumers, and limit fiscal space for new investments.
Under the proposed plan, the Private Power and Infrastructure Board (PPIB) has been tasked with hiring a private AMI Services Provider to install and operate the smart metering system in Lahore Electric Supply Company, Multan Electric Power Company, Peshawar Electric Supply Company, Hazara Electric Supply Company, and Quetta Electric Supply Company.
The project will be implemented under a public-private partnership model in coordination with the Power Planning and Monitoring Company, Power Information Technology Company, and the concerned distribution companies. As this will be the first AMI project executed under the PPP framework, the government has decided to engage an international financial institution as transaction advisor to provide end-to-end advisory support.
The transaction advisor will conduct technical, commercial, and legal due diligence, develop the business case, structure the PPP framework, manage the procurement process, assist with bid documentation, and support contract finalisation and financial close.
Approval for direct contracting of an international financial institution as transaction advisor was granted by the PPP Authority Board in December 2025 under the applicable PPP regulations. The advisory engagement is expected to last up to 12 months and will follow a success-based fee structure, with milestone-linked payments and a larger component payable at financial close.
The scope of work will cover diagnostics and data validation, transaction structuring and market sounding, procurement support, and contract execution. Given the World Bank’s experience in similar projects, PPIB has requested the institution to submit its proposal by January 14, 2026.
