The Pakistani government has taken a significant step towards reforming the power sector by approving the installation of Advanced Metering Infrastructure (AMI) in five major electricity distribution companies (Discos). This initiative, operating under a Public Private Partnership (PPP) mode, targets 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 aims to curb annual Transmission and Distribution (T&D) losses worth approximately Rs 265 billion (around USD 1 billion) by replacing outdated conventional meters with smart systems that enable real-time monitoring and accurate billing.
World Bank Engaged as Transaction Advisor
The Private Power and Infrastructure Board (PPIB) will lead the project, with the World Bank approached to act as the Transaction Advisor (TA). Following approval by the Public Private Partnership Authority (P3A) Board on December 16, 2025, the World Bank is expected to submit its proposal by January 14, 2026. The TA’s role includes comprehensive advisory services: diagnostics, business case development, PPP structuring, procurement support, and assistance until financial close. The engagement is capped at 12 months, with a success-fee-based payment model for the advisor.
Expected Benefits and Sector-Wide Impact
AMI implementation promises substantial improvements, including reduced technical and commercial losses, enhanced bill recoveries, greater system efficiency, and better visibility into consumption patterns. By addressing longstanding issues like theft, overbilling, and inefficiencies—currently contributing to 18% T&D losses—the project is poised to restore consumer confidence and support broader power sector reforms. Managed in coordination with entities like the Power Planning and Monitoring Company (PPMC) and Power Information Technology Company (PITC), this marks a landmark effort in modernizing Pakistan’s electricity distribution network through private sector involvement.