Pakistan plans smart meters on power transformers to curb theft, overbilling

Pakistan plans to install smart meters on power transformers across all distribution companies (DISCOs) to reduce electricity theft, improve billing accuracy and prevent overcharging, Economic Affairs Minister Ahad Cheema said on Tuesday.

He spoke at a meeting in Islamabad.

What are smart meters on power transformers meant to do?

According to Cheema, the meters are meant to reduce power theft, make billing more accurate and stop consumers from being overcharged.

The plan covers all DISCOs, which are the state-owned companies that distribute electricity. Cheema, who also oversees the Establishment Division, said the government had made progress in securing financing.

What happens to the project if DISCOs are privatized?

The meeting reviewed development programs for the state-owned distributors. It also focused on keeping the project going as the government moves ahead with plans to privatize them. Cheema said arrangements would be made for private investors to take over and complete the initiative after privatization.

The Economic Affairs Division will continue negotiations with multilateral development partners until privatization is completed. Any financing arrangements or development programs already under discussion would pass to the relevant private investor if a DISCO changes ownership, subject to agreed terms.

What rules will private investors have to follow?

Cheema said new projects by private investors within the DISCOs must follow competitive bidding procedures. They must also obtain approval from the National Electric Power Regulatory Authority (NEPRA), where required.

He said privatization should not add financial pressure on consumers. The government would seek to protect their interests while ensuring investors meet their contractual and financial commitments.

Power Minister Sardar Awais Ahmad Khan Leghari, the prime minister’s adviser on privatization and senior government officials also attended the meeting.