Govt to install smart meters to replace old electricity system

ISLAMABAD: Pakistan has made significant progress toward digitalizing its electricity sector by signing a Transaction Advisory Services Agreement with the International Finance Corporation, which operates under World Bank Group support to implement smart meter technology for 10 million electricity connections.

The IFC will serve as transaction advisor while conducting an extensive techno-commercial evaluation to determine the appropriate service provider or public-private partnership approach for large-scale deployment.

The project aims to secure funding from domestic and foreign investors who will finance, build, run, and manage the smart metering system.

The initiative aims to digitize Pakistan’s electricity distribution network through the complete replacement of existing systems, which will introduce modern technologies that enhance operational efficiency, financial transparency, and operational dependability.

Smart meters, which go by the name Advanced Metering Infrastructure, permit electricity usage to be monitored in real time while their detection systems stop theft, their automatic processes enhance billing precision, and their manual processes need less human input.

The government has already reduced the cost of smart meters by 40 percent through competitive bidding, which has decreased financial expenses for both the state and consumers.

The rollout plan requires all distribution companies to install smart meters for every new connection while halting the distribution of traditional meters from that point onward.

The process will convert all existing three-phase meters into smart meters, which must be completed by a specific deadline.