Pakistan has taken a major step toward modernising its power infrastructure after the Power Division Pakistan and the International Finance Corporation (IFC) signed a Transaction Advisory Services agreement to implement a large-scale smart metering system across the country.
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According to state media reports, the agreement will support the installation of approximately 10 million smart electricity meters for consumers nationwide, marking one of the largest digital upgrades in Pakistan’s power distribution network.
Officials said the initiative aims to attract both domestic and foreign investment while accelerating the transition toward a fully digital electricity management system. The reform is part of a broader government strategy focused on improving efficiency, reducing energy losses, and strengthening financial discipline within the power sector.
The programme, aligned with the government’s reform agenda, is being implemented under the vision of digital transformation in electricity transmission and distribution. Authorities believe the shift will significantly improve transparency in billing systems and help address long-standing issues such as electricity theft and inaccurate meter readings.
In a major cost-saving development, officials stated that competitive international procurement has reduced the price of smart meters by around 40 percent. As part of the reform plan, installation of smart meters has now been made mandatory for all new electricity connections across the country.
The government has also announced a phased replacement of traditional meters, particularly in existing three-phase, commercial, and industrial connections, which will be gradually converted to smart metering systems.
Authorities further confirmed that measures have been taken to resolve faulty meter issues, and the process has been fast-tracked following approval from the National Electric Power Regulatory Authority.
Officials expect the nationwide rollout to improve electricity recovery rates, reduce system losses, and enhance operational efficiency in distribution companies. The reform is also projected to strengthen the overall financial stability of the power sector by minimizing leakages and improving real-time monitoring of consumption patterns.
The agreement with IFC is seen as a key milestone in Pakistan’s efforts to modernise its energy infrastructure and align with global standards in digital utility management.
