Pakistan Plans Nationwide Smart Meter Rollout to Curb Power Theft, Seeks World Bank and ADB Funding

Pakistan is planning to install smart meters on transformers across all power distribution companies (DISCOs) as part of a nationwide effort to strengthen electricity monitoring, reduce power theft and improve billing accuracy, according to an official announcement.

The proposal was reviewed at a meeting chaired by Minister for Economic Affairs and Establishment Division Ahad Cheema, which examined ongoing development programmes for the distribution companies. Participants were told that progress has been made in arranging financing for the smart metering system, and the government intends to negotiate with the World Bank and the Asian Development Bank (ADB) to fund its installation across the distribution network.

Officials expect the system to help cut electricity theft, make billing more accurate, prevent overbilling and protect the interests of consumers, investors and the government. The meeting also considered how to keep the project running after the privatisation of the DISCOs. Cheema said the government would set up mechanisms requiring private investors who take over distribution companies to continue the initiative.

He added that negotiations with multilateral development partners on financing and development programmes would continue until the privatisation process is completed. If a DISCO is privatised while talks or project preparations are still underway, the relevant financing and development programmes would be transferred to the private investor as part of the handover, subject to agreed arrangements.

Cheema stressed that any new project undertaken by a private investor within a DISCO must go through competitive bidding and secure approval from the National Electric Power Regulatory Authority (Nepra) where required. He said privatisation should not shift costs onto consumers or place an undue financial burden on them, and that the government would support the process while safeguarding consumer interests and ensuring investors meet their financial and contractual obligations.

Minister for Power Division Sardar Awais Ahmad Khan Leghari, the prime minister's adviser on privatisation and senior officials from the relevant ministries also attended the meeting.