The federal government is set to install Advanced Metering Infrastructure (AMI) in five major power distribution companies. The move aims to modernise the country’s electricity system and reduce heavy financial losses.
Sources close to the Managing Director of the Private Power and Infrastructure Board (PPIB) revealed that transmission and distribution losses are costing Pakistan around USD 1 billion every year.
To support the project, the government has approached the World Bank to act as a Transaction Advisor.
The PPIB chief acknowledged that Pakistan’s power sector faces serious challenges. These include high technical and commercial losses, outdated meters, weak bill recoveries, and limited visibility of electricity consumption.
According to the Business Recorder, T&D losses are currently around 18 percent of total power supply. This translates into an estimated annual financial loss of Rs265 billion. Experts say these inefficiencies harm consumers and limit funds for important investments.
Under the project, a private AMI Services Provider will be hired to install and operate the system in five Discos: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Hazara Electric Supply Company (HAZECO), and Quetta Electric Supply Company (QESCO).
The project will follow a Public Private Partnership model. Key stakeholders including the Power Planning and Monitoring Company and Power Information Technology Company will be consulted throughout the process.
Shah Jahan Mirza, in a letter to the World Bank’s Islamabad office, said a Transaction Advisor will provide guidance for the entire project. The advisor will carry out technical, legal, and commercial assessments. They will also help develop the business case, structure the PPP, support the bidding process, and assist in finalising contracts.
The P3A Board approved PPIB’s proposal to hire an International Financial Institution as the Transaction Advisor during its 41st meeting on December 16, 2025. The advisory contract will last up to 12 months. Payments are expected to be partly milestone-based and partly success-based, to be settled by successful bidders at financial close.
The advisor’s work will cover four key phases: diagnosing and validating data, developing the business case, planning the rollout, structuring the transaction, supporting procurement, and finalising contracts.
PPIB believes the World Bank’s involvement will be crucial for the project’s success. Officials said the Bank’s experience in similar initiatives can help Pakistan achieve its goal of modernising the power sector and reducing system inefficiencies.
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