ISLAMABAD: Pakistan on Monday engaged the International Finance Corporation (IFC) of the World Bank as transaction adviser for inducting private investors in the installation of 10 million smart meters across all electricity distribution companies (Discos).

The Ministry of Energy (Power Division) had announced a large-scale rollout of smart meters across Discos in October 2025.

On Monday, the Power Division said it has signed a Transaction Advisory Services Agreement (Tasa) with the IFC, a member of the World Bank Group.

Under this 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 10m single-phase connections.

The initiative was intended to attract local and international investors to install, maintain, and operate the infrastructure, thereby advancing Pakistan’s digital transformation in the power sector.

It said the digitisation process has been accelerated to reform the national power distribution network. The reform seeks to replace legacy systems with modern infrastructure, thereby 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 per cent, delivering substantial savings to the national exchequer and, ultimately, to consumers.

All Discos 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 Discos to replace defective meters with smart meters, thereby expediting the nationwide transition to a fully digital grid.

The power division said it would continue its unwavering commitment to an efficient, transparent, and consumer-centric power sector that delivers reliable electricity services to the people of Pakistan.