Pakistan plans smart meters nationwide to stop electricity theft
The proposed smart meter installation will cover all power distribution companies (DISCOs). The government is also seeking financial support from international lenders to fund the project.
The smart meters Pakistan plan is expected to bring major changes to the electricity distribution system.
The initiative was discussed during a meeting chaired by Minister for Economic Affairs and Establishment Division Ahad Cheema on November 10, 2026.
Officials reviewed ongoing development programmes for DISCOs and discussed arrangements for financing the project.
World Bank and ADB May Provide Funding
According to an official announcement, progress has been made in arranging funds for the proposed system.
The government plans to negotiate with the World Bank and the Asian Development Bank (ADB) to secure financial support.
These institutions could help fund the smart meter installation across the electricity distribution network.
The main purpose of the project is to address electricity theft Pakistan has struggled with for years.
Officials believe improved monitoring will help identify losses and reduce illegal electricity connections.
The system is also expected to improve billing accuracy, prevent overbilling and provide more reliable information about electricity consumption.
The smart meters Pakistan initiative could therefore benefit consumers, investors and the government.
Project to Continue After DISCO Privatization
The meeting also discussed how the project would continue after the privatization of electricity distribution companies.
Ahad Cheema said the government would introduce arrangements requiring private investors who take over DISCOs to continue the project.
He added that negotiations with international development partners would continue until the privatization process was completed.
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If a distribution company is privatized while funding talks or project preparations are still underway, the relevant financing and development programmes will be transferred to the new investor under agreed arrangements.
The government believes this approach will prevent delays in the smart meter installation process. It also aims to ensure that privatization does not stop efforts to control electricity theft Pakistan faces across its distribution network.
Private Investors Must Follow Rules
Cheema stressed that private investors must follow proper procedures before starting new projects within DISCOs.
He said all such projects must go through competitive bidding and obtain approval from the National Electric Power Regulatory Authority (NEPRA), wherever required.
He also made it clear that privatization should not increase electricity costs or place an unnecessary financial burden on consumers.
The government will support private investment while ensuring that companies fulfil their financial and contractual responsibilities.
The smart meters Pakistan project is expected to remain part of the wider effort to improve the power sector.
Minister for Power Division Sardar Awais Ahmad Khan Leghari, the prime minister’s adviser on privatization and senior government officials also attended the meeting.