ISLAMABAD, November 10, 2026: The federal government is working to secure financing for the installation of smart meters on electricity transformers across all power distribution companies (DISCOs) to curb electricity theft, improve billing accuracy and protect consumers from overbilling.
Federal Minister for Economic Affairs and Establishment Division Ahad Cheema reviewed progress on the initiative while chairing a meeting on development programmes for DISCOs, according to a statement issued by the Ministry of Economic Affairs.
The meeting was informed that the Economic Affairs Division (EAD) had made positive progress in arranging funding for the proposed smart metering system.
The initiative aims to strengthen electricity distribution monitoring by installing smart meters at transformer level, helping distribution companies identify power losses, detect irregularities and improve the accuracy of electricity billing.
During the meeting, participants also discussed the future of the project in the context of the government’s ongoing DISCO privatisation programme.
Ahad Cheema said arrangements would be introduced to ensure that private investors continue implementing the smart metering initiative after taking over distribution companies.
He emphasised that the project should protect the interests of electricity consumers while also safeguarding the legitimate interests of investors and the government.
According to the minister, negotiations with multilateral development partners for DISCO improvement programmes would continue until the privatisation process was completed.
If a distribution company is privatised while financing negotiations or development programme preparations are still under way, the relevant programmes and funding arrangements would be transferred to the private investor as part of the handover, subject to agreed terms.
Cheema also directed that any new development project undertaken by a private investor within a DISCO must follow competitive bidding procedures and obtain approval from the National Electric Power Regulatory Authority (NEPRA), wherever required.
The minister stressed that electricity distribution privatisation should not become a mechanism for transferring additional financial burdens to consumers.
He said the government would facilitate the privatisation process while ensuring that consumers’ rights remained protected and investors fulfilled their financial and contractual responsibilities.
The proposed smart metering system forms part of broader efforts to improve transparency and accountability in Pakistan’s electricity distribution network, where theft, technical losses and billing disputes remain major challenges.
Transformer-level monitoring could help distribution companies compare electricity supplied to local networks with recorded consumption, enabling more effective identification of losses and potential irregularities.
However, the ministry did not disclose the total estimated cost of the project, the number of transformers to be covered or a timeline for completing the installation.
Federal Minister for Power Sardar Awais Ahmad Khan Leghari, the Prime Minister’s Adviser on Privatisation and senior officials from relevant ministries attended the meeting.