Govt to Install Smart Meters Across Country to Curb Electricity Theft

The government of Pakistan is set to implement a nationwide program to install smart meters on transformers across all power distribution companies (DISCOs). This initiative aims to secure multibillion dollar financing from international development lenders, such as the World Bank and Asian Development Bank, to bolster electricity monitoring, curtail power theft, and enhance billing precision.

The proposal was deliberated during a meeting chaired by Ahad Cheema, Minister for Economic Affairs and Establishment Division, on November 10, 2026. The meeting examined existing development programs for DISCOs, with an emphasis on the Economic Affairs Division's efforts to secure funding for the widespread deployment of smart meters throughout the country's electricity distribution network.

Government officials have reported progress in arranging financing for the proposed smart metering system. The anticipated collaboration with the World Bank and Asian Development Bank is crucial for securing the necessary funds. The proposed system is expected to benefit consumers, investors, and the government by reducing electricity theft, improving billing accuracy, preventing overbilling, and safeguarding the interests of all stakeholders involved.

Following the privatization of DISCOs, the government intends to maintain the smart meter project. During the meeting, Ahad Cheema outlined plans to establish mechanisms ensuring private investors, who assume control of distribution companies, continue executing the initiative. He emphasized that negotiations with multilateral development partners on financing and development programs would persist until the privatization process concludes.

Furthermore, if a DISCO undergoes privatization while negotiations or project preparations are ongoing, the pertinent financing and development programs will be transferred to the private investor as part of the transfer, contingent upon mutually agreed terms.

Cheema also highlighted that any new project undertaken by a private investor within a DISCO must undergo competitive bidding and receive approval from the National Electric Power Regulatory Authority (Nepra), as necessary. He stressed that privatization must not burden consumers with additional financial costs, and the government would support the process while protecting consumer interests and ensuring investors fulfill their financial and contractual obligations.

Attendees of the meeting included Sardar Awais Ahmad Khan Leghari, Minister for Power Division and Prime Minister's adviser on privatization, as well as senior officials from relevant ministries. The government's commitment to the smart meter project aims to bolster the country's power sector, promote efficiency, and enhance overall service delivery.