A decision has been taken to replace all three-phase consumer meters with smart meters in phases, marking a move towards a modern digital system.
The Power Division has declared the installation of smart meters mandatory for all new electricity connections. A Transaction Advisory Services Agreement has been signed between the Power Division and the International Finance Corporation (IFC), according to a spokesman.
A plan is in place for the installation of smart meters on 10 million connections, the Power Division spokesman said.
Smart metering will help curb electricity theft and bring transparency to billing, the spokesman added.
An international competitive process has reduced the cost of smart meters by 40 per cent, the Power Division stated.
Commercial and industrial consumers will be brought into the digital system, the spokesman said.
Improvement in recovery and a reduction in losses are expected following the installation of smart meters, the spokesman noted.
Reforms in the power sector will lead to financial stability and improved performance, the spokesman said.
The Ministry of Energy (Power Division) has signed a Transaction Advisory Services Agreement with the International Finance Corporation, a member of the World Bank Group.
Under the agreement, the IFC will act as transaction adviser and carry out 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 aims to attract local and international investors for installation, maintenance and operation of the system, advancing digital transformation in the power sector.
Under the direction of the prime minister, the ministry has accelerated digitisation reforms in the national power distribution network, replacing legacy systems with modern infrastructure to improve transparency, operational efficiency and long-term financial viability.
Advanced Smart Metering Infrastructure forms a central part of this transition. Smart meters provide real-time visibility of energy consumption, reduce theft through anomaly detection, improve billing accuracy and recovery, and minimise manual errors.
Through international competitive bidding, the Ministry has reduced the price of single-phase and three-phase smart meters by 40 per cent, resulting in savings for the national exchequer and consumers. Distribution companies have been directed to install smart meters for all new connections, with no conventional meters to be issued. Existing three-phase meters will be converted within a fixed timeframe, bringing commercial and industrial users into the digital system.
In coordination with the National Electric Power Regulatory Authority, defective meters will be replaced with smart meters to speed up the transition to a fully digital grid.
The ministry reaffirmed its commitment to an efficient, transparent and consumer-focused power sector delivering reliable electricity services across Pakistan.







