Pakistan signs IFC deal to accelerate nationwide smart meter rollout

April 20, 2026 (MLN): The Ministry of Energy (Power Division) has entered into a Transaction Advisory Services Agreement (TASA) with the International Finance Corporation (IFC), a member of the World Bank Group, to accelerate the deployment of smart metering infrastructure across Pakistan’s electricity distribution network.

Under the agreement, IFC will serve as transaction advisor and carry out a comprehensive techno-commercial assessment for a service-provider model or public-private partnership (PPP) framework.

The initiative is aimed at facilitating the large-scale installation, operation, and maintenance of smart meters for approximately 10 million single-phase connections, according to a press release issued.

It is expected to attract both local and international investors, supporting Pakistan’s broader digital transformation agenda in the power sector.

The reform program, driven under the government’s vision for a modernized energy system, focuses on replacing outdated infrastructure with advanced digital solutions to improve transparency, operational efficiency, and financial sustainability across distribution companies.

At the heart of this transformation is the Advanced Metering Infrastructure (AMI), which enables real-time monitoring of electricity consumption, enhances billing accuracy, improves recovery rates, and helps detect and reduce power theft through automated anomaly detection.

The system also reduces reliance on manual processes, minimizing human error.

As part of procurement reforms, the government reports a 40% reduction in the cost of both single-phase and three-phase smart meters through an international competitive bidding process, generating significant savings for the national exchequer and consumers.

Distribution companies have been instructed to install smart meters for all new electricity connections, effectively discontinuing the issuance of traditional meters.

Additionally, existing three-phase consumers will be transitioned to smart meters within a defined timeline to ensure full integration of commercial and industrial users into the digital system.

To address issues related to faulty and defective meters, the Ministry has coordinated with the National Electric Power Regulatory Authority (NEPRA). Recent regulatory decisions have authorized distribution companies to replace defective units with smart meters, further accelerating the nationwide upgrade.

The Ministry of Energy reaffirmed its commitment to building an efficient, transparent, and consumer-focused power sector aligned with the government’s vision of providing reliable electricity services across the country.

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