Pakistan’s Ministry of Energy (Power Division) today initiated a significant digitisation reform, partnering with the International Finance Corporation (IFC) to implement advanced smart metering across 10 million single-phase connections to tackle persistent issues of electricity theft and billing inaccuracies.
Under a newly signed Transaction Advisory Services Agreement (TASA), the IFC, a member of the World Bank Group, will serve as transaction advisor. Its mandate includes conducting a comprehensive techno-commercial assessment for a service-provider model or public-private partnership. This framework aims to attract local and international investors for the installation, maintenance, and operation of the smart metering infrastructure, thereby advancing the nation’s digital transformation within the power sector.
Guided by the Honourable Prime Minister of Pakistan’s leadership, the Ministry has accelerated this digital transformation of the national electricity distribution network. This extensive reform endeavours to supersede outdated systems with modern infrastructure, thereby boosting transparency, operational efficiency, and long-term financial viability across the sector.
Advanced Smart Metering Infrastructure (AMI) is central to this modernisation drive. These digital meters offer real-time visibility of energy consumption, curb theft through anomaly detection, enhance billing precision and recovery rates, and eliminate human errors by minimising manual intervention.
Through an international competitive bidding process, the Ministry successfully reduced the unit price of both single-phase and three-phase smart meters by 40 percent. This achievement promises substantial savings for the national exchequer and, ultimately, for consumers. All electricity distribution companies have received directives to install smart meters for every new connection, prohibiting the issuance of traditional meters to new applicants. Furthermore, all existing three-phase consumer meters are mandated to be converted to smart meters by a specified deadline, ensuring full integration of commercial and industrial users into the digital system within the stipulated timeframe.
To address the persistent challenge of faulty and defective meters, the Ministry has collaborated closely with the National Electric Power Regulatory Authority (NEPRA). In its recent determinations regarding distribution investment plans, NEPRA has authorised distribution companies to replace faulty meters with modern smart meters, thereby accelerating the nationwide shift to a fully digital grid.
The Ministry of Energy (Power Division) reiterates its unwavering commitment to the Honourable Prime Minister”s objective of establishing an efficient, transparent, and consumer-centric power sector that delivers dependable electricity services to the people of Pakistan.
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