Islamabad (Israr Khan, Sajid Chaudhry) The role of the government in the purchase of electricity has ended, the first industrial auction has started with 400 megawatts, the electricity market has been opened for competition, Federal Minister for Energy Owais Leghari has said that the government will decentralize electricity distribution, the government is practically withdrawing from the procurement process from today, which is a milestone, electricity producers and consumers will be able to directly buy and sell contracts under the market framework instead of the centralized system of the government, the new system will be transparent and It will promote competitiveness, can help industries reduce energy costs, improve their competitiveness in global markets and increase exports. According to the details, the first wheeling auction of electricity in Pakistan has started: 400 MW of electricity offered; The initial 400MW will be auctioned under competitive bidding by the Power Division. Pakistan has started auction of electric wheeling for the first time. 400 MW electricity is being offered in the initial phase. The government has initiated this initiative to gradually move away from the existing system of centralized power purchase to direct trading between power producers and large consumers on a competitive basis. The Power Division has invited proposals under the competitive bilateral contract market framework. A total of 800 MW of power is planned to be auctioned over the next five years, while in the initial phase 400 MW of power will be offered for purchase on a competitive basis. Federal Energy Minister Sardar Owais Ahmed Khan Laghari termed this initiative as an important milestone regarding reforms in the energy sector. He said that the government is gradually starting to withdraw from its traditional role as the main buyer of electricity. “The government is virtually exiting the power procurement process from today,” he said, adding that under the new system, power producers and consumers will be able to enter into direct power purchase and sale contracts under a market-based framework, which will not only allow them to rely on the government’s central power purchase system. He said, “The government will neither have the right to sell power nor will it buy power from power producers under the traditional method.” In the first phase, priority will be given to industrial and large consumers, especially those consuming more than one megawatt of electricity. The government plans to gradually extend the scope of buying and selling electricity to a wider segment of consumers on a competitive basis. “Power producers and consumers will be able to buy and sell electricity directly,” the minister said, stressing that the new system would promote transparency and competition.