Pakistan signs IFC deal for nationwide smart meter rollout

ISLAMABAD: In a significant development, the Ministry of Energy has signed a Transaction Advisory Services Agreement (TASA) with the International Finance Corporation (IFC), under which the global financial institution will serve as transaction advisor for the large-scale deployment of Advanced Smart Metering Infrastructure (AMI).

Under the agreement, the IFC will carry out a comprehensive techno-commercial assessment to structure a service-provider model or a public-private partnership framework for the initiative. The objective is to mobilize both local and international investors for the installation, operation, and maintenance of smart metering infrastructure across the country.

The Power Division, in a statement, said the move is part of a broader push led by Prime Minister Shehbaz Sharif to digitize Pakistan’s power distribution system and replace outdated infrastructure with modern, technology-driven solutions. The reform drive is aimed at improving operational efficiency, ensuring financial sustainability, and enhancing service delivery.

Advanced Smart Metering Infrastructure is being positioned as a cornerstone of this transformation. Smart meters are expected to provide real-time monitoring of electricity consumption, significantly reduce power theft through anomaly detection, improve billing accuracy and recovery, and minimize human intervention to eliminate manual errors, said the Power Division.

The Power Division also said that the government has already achieved a major breakthrough by reducing the procurement cost of both single-phase and three-phase smart meters by 40 percent through an international competitive bidding process, resulting in substantial savings for the national exchequer and ultimately benefiting consumers.

As part of implementation measures, all power distribution companies have been directed to install smart meters for every new electricity connection, effectively phasing out traditional meters for new applicants. Additionally, all existing three-phase meters—primarily used by commercial and industrial consumers—are to be converted into smart meters within a stipulated timeframe to ensure their integration into the digital grid.

To tackle the persistent issue of defective and faulty meters, the Ministry has worked closely with the National Electric Power Regulatory Authority. In its recent determinations on distribution companies’ investment plans, NEPRA has allowed DISCOs to replace faulty meters with smart meters, accelerating the transition toward a fully digitalized power network, said the Power Division.