ISLAMABAD: The Ministry of Energy Power Division has signed a key agreement with the International Finance Corporation to accelerate Pakistan’s transition to a digital power infrastructure through large-scale smart metering.

Under the Transaction Advisory Services Agreement, the IFC will serve as transaction advisor and carry out a comprehensive techno commercial assessment for deploying smart meters across 10 million single phase connections. The initiative will explore a service provider or public private partnership model to ensure efficient rollout.

The project is designed to attract both local and international investors for installing, operating, and maintaining the smart metering system. Officials say the move marks a major step toward modernising Pakistan’s power distribution network.

The government has intensified efforts to digitise the energy sector by replacing outdated systems with advanced infrastructure. Smart meters are central to this transformation as they offer real time monitoring of electricity usage, improve billing accuracy, and help curb power theft through better detection mechanisms.

Authorities have already achieved significant cost efficiency by reducing smart meter prices by 40 percent through a competitive international bidding process, easing the financial burden on the national exchequer and consumers.

Distribution companies have now been directed to install smart meters for all new connections, while existing three phase consumers will be shifted to the new system within a set timeline. In coordination with NEPRA, faulty and outdated meters will also be replaced, paving the way for a fully digital and more transparent power grid across Pakistan.