ISLAMABAD: The government’s ‘subsidies cell’, under the supervision ofSpecial Assistant to Prime Minister on Revenue Waqar Masood, has estimatedto save around 500 billion under its targeted subsidies action plan,sources revealed on Thursday.

Sources said that the cell has undertaken extensive exercise to assess thefinancial burden of subsidies on the national exchequer.

Presently, the government is providing subsidies to power (electricity),gas, food, petroleum and fertiliser sectors.

Sources said that the federal government will save around Rs75 billionunder targeted subsidy for industry. Similarly, the Ministry of NationalFood Security & Research will be able to save Rs50 billion while settlingthe reform commodity debt.

In addition, the power ministry will save Rs200 billion while adoptingnational average electricity tariff by consolidating the accounts of DISCOs.

Besides, the Power Division will also save Rs18 billion by implementing theelectricity pricing agreement reached with Azad Jammu Kashmir through NEPRA.

A sum of Rs12 billion will be saved by improving the recovery ratio inmerged districts of Khyber Pakhtunkhwa.

Sources said that the government was also working on a number of actionplans, including subsidy on electricity to low income consumers throughEhsaas. IESCO and Ehsaas Division would start a pilot project in Islamabadwherein the data of electricity consumers would be matched with IESCOrecord, after which the subsidy amount would be cleared.

This action plan would be implemented till December 2021, sources said.