ISLAMABAD – Pakistan moves to cut smart meter costs as a major relief for the power sector and the national economy. The reduced prices make it far easier and more affordable to roll out advanced smart metering across the country.
Ministry of Energy signed Transaction Advisory Services Agreement with the International Finance Corporation (IFC), setting the stage for a large-scale transformation of the country’s electricity distribution system through advanced smart metering infrastructure.
Under this agreement, Inernational Finance Corporation will act as a transaction advisor and conduct a comprehensive techno-commercial assessment of implementation models, including service-provider arrangements and public–private partnership frameworks. The ambitious plan targets the rollout of smart metering solutions for nearly 10 million single-phase electricity connections across the country.
Officials say the initiative is designed to attract strong interest from both local and international investors, who will be responsible for installing, operating, and maintaining the new digital infrastructure. The reform drive is a key pillar of Pakistan’s broader push to modernize its electricity distribution network by replacing outdated legacy systems with a fully digitized, transparent, and efficient framework.
Pakistnai officials are pushing for Advanced Smart Metering (ASM) system, which is expected to make huge changes to electricity monitoring in real time. The technology will significantly reduce power theft, improve billing accuracy, eliminate manual errors, and minimize human intervention in the system.
The government also achieved 40 percent reduction in the price of both single-phase and three-phase smart meters through international competitive bidding, delivering substantial financial relief to the national exchequer.
As part of strict new directives, all electricity distribution companies have been instructed to install smart meters for every new connection, effectively ending the issuance of traditional meters nationwide. In addition, existing three-phase meters used by commercial and industrial consumers will be mandatorily upgraded to smart meters within a fixed deadline, ensuring full integration of high-load users into the new digital energy ecosystem.
Smart Meter Charges (2026)
Single-phase meters are expensive compared to previous years, while some relief has been observed in three-phase meter pricing due to recent policy adjustments. For a single-phase connection, the meter itself costs around Rs. 17,700.
| Meter Type | Base Meter Cost | Additional Charges | Total Estimated Cost |
| Single-Phase Smart Meter | Rs. 17,700 | Security + installation fees | Above Rs. 21,000 (overall) |
| Three-Phase Smart Meter | Below Rs. 25,000 | Varies by region/distribution company | Under Rs. 25,000 (some cases) |
When security deposits and other installation-related fees are included, the total cost of a new connection can exceed Rs. 21,000 under companies like LESCO. For three-phase connections, which are mostly used by commercial and industrial users, the Ministry of Energy reports a reduction in prices. In some cases, the cost has been brought down to below Rs. 25,000, making it comparatively more affordable than earlier estimates.
LESCO announces new price for single phase meters – Check Total Cost
