Ahad Cheema reviews funding arrangements for the nationwide project, saying private investors will be required to continue the initiative after power distribution companies are privatised.
Federal Minister for Economic Affairs and Establishment Division Ahad Cheema on Tuesday chaired a meeting to review development programmes for power distribution companies (DISCOs), including plans to install smart meters on transformers across the country.
The meeting discussed the Economic Affairs Division’s (EAD) efforts to arrange financing for the smart metering project, which aims to reduce electricity theft, improve billing accuracy and protect consumers from overbilling.
According to an official statement issued on Tuesday, participants noted positive progress in securing funding for the proposed system.
The meeting also reviewed how the project would continue after the privatisation of DISCOs. Cheema said the government would make arrangements to ensure that private investors carry forward the smart metering initiative after taking control of the distribution companies.
He said negotiations with multilateral development partners for funding and development programmes would continue until the privatisation process was completed.
If a DISCO is privatised while financing negotiations or programme preparations are still under way, the relevant development programmes and financing arrangements would be transferred to the private investor as part of the handover, subject to agreed terms.
The meeting also discussed safeguards for projects undertaken by private investors. Cheema emphasised that any new project initiated within a DISCO must go through competitive bidding and obtain approval from the National Electric Power Regulatory Authority (NEPRA), wherever required.
He stressed that privatisation should not result in additional costs or undue financial pressure on electricity consumers. The government would facilitate the process while protecting consumer interests and ensuring that private investors fulfil their financial and contractual responsibilities.
Smart meters installed on transformers are intended to help distribution companies monitor electricity flows more effectively, identify losses and improve accountability in the power distribution system.
Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari, the Prime Minister’s Adviser on Privatisation and senior officials from the relevant ministries also attended the meeting.
The proposed initiative forms part of broader efforts to improve DISCO performance and address electricity theft and billing-related issues through better monitoring and investment.