The Power Division and the International Finance Corporation (IFC) on Monday signed a Transaction Advisory Services agreement aimed at modernising Pakistan’s electricity distribution system through large-scale smart metering, PTV reported.

Under the plan, around 10 million electricity consumers across the country will be equipped with smart metres. Officials said the initiative is expected to attract both local and foreign investment and support the transition toward a digital power system.

Driven by the prime minister’s vision, the digital transformation of the power transmission and distribution system is being accelerated. The programme forms part of broader power sector reforms designed to improve efficiency, reduce electricity theft, and enhance transparency in billing, the statement said.

Through an international competitive process, the cost of smart metres has been reduced by around 40 per cent. Installation of smart metres has been made mandatory for all new electricity connections, while traditional metres are being phased out as part of the shift toward a digital system, it added.

Officials stated that existing three-phase, commercial, and industrial connections will also be converted to smart metres in phases. Authorities said effective measures have been taken to address faulty metre issues, with the process being expedited following approval from the National Electric Power Regulatory Authority.

The rollout of smart metres is expected to improve recovery, reduce system losses, and enhance overall efficiency. The initiative, approved in line with regulatory requirements, is expected to strengthen the financial stability of the power sector while improving recovery and reducing losses.