IFC to advise govt on 10m smart meters rollout

The Ministry of Energy (Power Division) has signed a Transaction Advisory Services Agreement (TASA) with the International Finance Corporation (IFC), a member of the World Bank Group, according to an official statement issued on Monday.

Under the agreement, the IFC will act as transaction advisor and conduct a comprehensive techno-commercial assessment for a service-provider model or public-private partnership framework to support the large-scale rollout of smart metering infrastructure for 10 million single-phase connections. The initiative is intended to attract local and international investors to install, maintain and operate the infrastructure, thereby advancing Pakistan's digital transformation in the power sector.

The reform seeks to replace legacy systems with modern infrastructure, enhancing transparency, operational efficiency and long-term financial viability. Advanced smart metering infrastructure (AMI) forms the cornerstone of this transformation. Smart meters provide real-time visibility of energy consumption, reduce theft through anomaly detection, improve billing accuracy and recovery rates, and eliminate manual errors by minimising human intervention.

Through an international competitive bidding process, the ministry has reduced the price of both single-phase and three-phase smart meters by 40%, delivering substantial savings to the national exchequer and, ultimately, to consumers. All distribution companies have been directed to install smart meters for every new electricity connection, with no traditional meters to be issued to new applicants.

In addition, all existing three-phase consumer meters must be converted to smart meters by a defined deadline, ensuring that commercial and industrial consumers are fully integrated into the digital system within the specified timeframe.

To address the longstanding issue of faulty and defective meters, the ministry has collaborated closely with the National Electric Power Regulatory Authority (Nepra). In its recent determinations on distribution investment plans, Nepra has authorised distribution companies to replace defective meters with smart meters, thereby expediting the nationwide transition to a fully digital grid.

The Ministry of Energy (Power Division) reaffirmed its commitment to the prime minister's vision of an efficient, transparent and consumer-centric power sector that delivers reliable electricity services to the people of Pakistan.