ISLAMABAD: The Asian Development Bank (ADB) has approved technical assistance to help Pakistan modernise its power distribution companies (Discos) through the adoption of smart technologies aimed at improving operational efficiency and service reliability.

According to the ADB project document, the initiative seeks to transform Discos into key drivers of the country`s energy transition by incorporating advanced technologies that support modernised operations and integration of renewable energy systems. The 18-month assistance programme will focus on developing a strategic roadmap, conducting feasibility studies for digitalisation, and enhancing capacity for network planning and technology adoption.

The project will introduce a modern Distribution Management System (DMS), integrated with Supervisory Control and Data Acquisition (SCADA), Advanced Metering Infrastructure (AMI), and an online Automated Power Management System (APMS). This integration is expected to significantly improve outage response, load forecasting, automation, and the management of decentralised renewable energy resources.

The programme will directly benefit three power utilities Lahore Electric Supply Company (Lesco), Multan Electric Power Company (Mepco), and Sukkur Electric Power Company (Sepco) which will also serve as the executing agencies.

Pakistan`s power distribution sector faces persistent challenges, including high transmission and distribution losses, low bill recovery rates, and limited investment due to weak financial performance. Poor governance, regulatory weaknesses, and lack of transparency have further hindered efficiency and access to commercial borrowing, forcing reliance on constrained public and donor funding.

These structural issues have led to unreliable energy services for consumers. Meanwhile, growing electricity demand and the increasing deployment of decentralised renewable systems, including rooftop solar and electric vehicle charging infrastructure, have added complexity to grid management.