Agreement targets modernization of electricity distribution system
Pakistan has taken a significant step toward digitizing its power sector by signing a Transaction Advisory Services Agreement with the International Finance Corporation. Under the deal, the IFC will serve as transaction advisor for the rollout of smart meters across 10 million electricity connections nationwide.
Moreover, the agreement includes a comprehensive techno-commercial assessment to support either a service-provider model or a public-private partnership. Consequently, the initiative aims to attract both local and international investors to finance, install, operate, and maintain the smart metering infrastructure.
In addition, officials view this move as part of broader efforts to modernize Pakistan’s aging power distribution network. By replacing outdated systems, authorities expect to improve transparency, operational efficiency, and financial sustainability across the sector.
Smart technology to enhance efficiency and reduce losses
Meanwhile, smart meters—also known as advanced metering infrastructure—will enable real-time monitoring of electricity consumption. As a result, the system will help reduce power theft through detection mechanisms, improve billing accuracy, and limit manual intervention.
Furthermore, the government has already lowered the cost of smart meters by 40 percent through competitive bidding, easing financial pressure on both consumers and the state. This cost reduction strengthens the feasibility of large-scale deployment.
Under the implementation plan, all distribution companies must install smart meters for every new connection. Additionally, authorities will gradually replace all existing three-phase meters within a defined timeline.
Overall, the initiative marks a major change in Pakistan’s energy sector, signaling a shift toward digital governance and improved service delivery.
Meta description: Pakistan partners with IFC to deploy smart meters nationwide, improving efficiency, reducing theft and modernizing power distribution infrastructure
