The federal government has decided to install Advanced Metering Infrastructure in five major power distribution companies to modernise Pakistan’s electricity distribution system and curb massive financial losses caused by inefficiencies. Sources close to the Managing Director of the Private Power and Infrastructure Board said the annual impact of transmission and distribution losses is estimated at nearly one billion dollars, making the project a top priority for power sector reform.
Pakistan’s power sector continues to face severe operational and financial stress due to high technical and commercial losses weak bill recovery outdated metering systems and limited real time visibility of electricity consumption. Transmission and distribution losses currently stand at around eighteen percent of total power supply translating into an estimated annual loss of Rs 265 billion which ultimately burdens consumers and restricts public investment capacity.
To address these challenges PPIB has been mandated to hire a private Advanced Metering Infrastructure Services Provider for the installation and operation of AMI systems in Lahore Electric Supply Company Multan Electric Power Company Peshawar Electric Supply Company Hazara Electric Supply Company and Quetta Electric Supply Company. The initiative aims to reduce losses improve recoveries enhance efficiency and rebuild consumer confidence.
The project will be executed under the Public Private Partnership framework in coordination with the Power Planning and Monitoring Company Power Information Technology Company and the concerned Discos. Since this is the first AMI rollout under the PPP model the government has approached the World Bank to act as Transaction Advisor for end to end advisory support.
According to PPIB the Transaction Advisor will conduct technical commercial and legal due diligence develop the business case structure the PPP model manage the bidding process and support contract execution through financial close. The P3A Board approved the engagement of an international financial institution as Transaction Advisor in December 2025 under direct contracting regulations.
The advisory engagement is expected to last up to twelve months with a success based fee structure. PPIB has requested the World Bank to submit its proposal by January 14 2026 expressing confidence that the Bank’s expertise will be critical to the success of this landmark initiative aimed at modernising Pakistan’s power distribution system and eliminating long standing inefficiencies.
