The federal government has decided to install Advanced Metering Infrastructure (AMI) in five power Distribution Companies (Discos) as part of efforts to modernise Pakistan’s electricity distribution system and reduce heavy financial losses.
According to sources close to the Managing Director of the Private Power and Infrastructure Board (PPIB), losses caused by transmission and distribution (T&D) issues are estimated at around 1 billion dollars every year.
These losses are placing a major burden on the power sector and the national economy. To support the project, the government has approached the World Bank to act as a transaction advisor.
The World Bank is expected to help with key areas such as project structuring, market assessment, procurement support, bid process management, and contract finalisation, including financial close.
The Managing Director of PPIB acknowledged that Pakistan’s power sector is facing serious operational and financial problems.
He pointed out that high technical and commercial losses, poor recovery of bills, outdated metering systems, and limited visibility of electricity consumption are among the main challenges affecting the sector.
According to the sources, the AMI project aims to introduce smart meters that will improve monitoring, billing accuracy, and overall transparency in electricity usage.
This is expected to help reduce losses, improve revenue collection, and strengthen the financial position of Discos.
Given the World Bank’s experience in similar projects around the world, PPIB has formally requested the Bank to submit a proposal for providing transaction advisory services for the AMI rollout in the selected five Discos.
The World Bank has been asked to submit its proposal to PPIB by January 14, 2026. Officials believe the Bank’s involvement will play a key role in ensuring the success of this initiative which is considered a top priority under the government’s power sector reform and modernisation agenda.