ISLAMABAD: Even as the government insisted there was no fuel supply problem, concerns over a looming petroleum crisis by December amid escalating conflicts in the Middle East were raised in the Senate on Friday, with Sherry Rehman raising questions about the government`s plans for possible rationing and contingencies, and opposition leader Raja Nasir Abbas warning that a war engulfing key energy routes would aggravate Pakistan`s energy crisis.

PPP`s parliamentary leader Sherry Rehman, whose party is an ally of the ruling PML-N, said lawmakers across the aisle were asking a fundamental question: whether petrol would remain available in the country until December amid tensions in the Middle East and West Asia.

`What is the government`s plan for availability of petroleum products? Willthere be rationing? Members of parliament have concerns whether petrol will be available till December, she said, demanding that petroleum and energy ministers brief parliament on future planning and contingency measures.

Ms Rehman said reports of renewed attacks on Iran and the escalating conflict in West Asia had heightened uncertainty over Pakistan`s petroleum supplies, with direct implications for the country`s energy security, economic stability and the lives of ordinary citizens.

She warned that any disruption in LPG supplies would have a serious impact across the country, pointing out that Pakistan relied on imports for nearly 70 per cent of its LPG requirements, while domestic production accounted for only 30pc.

Pakistan received five LPG cargoes last year, whereas only two were expectedthisyear,she said, demanding that a supplyplan be presented before parliament.

Turning to the carbon levy, Ms Rehman, who chairs the Senate Standing Committee on Climate Change, said the levy collected on petroleum products was not being spent on environmental protection.

`Yesterday, during the meeting of the Senate Standing Committee on Climate Change, the additional finance secretary acknowledged that the carbon levy is not being spent on environmental projects. A levy is not a tax; it goes straight into the Federal Consolidated Fund, where there is no ring-fencing for spending on climate action,` she said.

She said the revelation confirmed what had been denied to her earlier during a Senate session. The levy introduced as the Climate Support Levy at Rs2.5 per litre and later increased to Rs5 per litre on petrol, diesel and furnace oil under the IMF`s Resilience and Sustainability Facility was being absorbed intogeneral federal receipts instead of being earmarked for climate resilience, despite the severe and devastating floods affecting all provinces.

Allama Nasir Abbas warned that the war engulfing the region, from Iran to Yemen, would worsen Pakistan`s energy crisis as key maritime chokepoints came under threat.

He linked the external crisis to domestic shortages, saying Punjab was already facing a flour shortage while the country was also experiencing an LPG shortage. Criticising the political focus, he said politicians were ignoring real issues and were busy trying to conquer provinces.

He said it had already been stated that Pakistan`s system had collapsed and that, despite the system`s failureinSindh,Balochistan and Punjab, an emergency had not been imposed.

On Yemen, he termed the war very dangerous and said Pakistan should mediate between Yemen and Saudi Arabia.

`No fuel supply problem` Minister of State for Finance and Revenue Bilal Azhar Kayani informed the house during question hour that more than 10 million people were benefiting from the government`s targeted fuel subsidy.

Replying to various questions during question hour, he said motorcyclists were receiving Rs500 worth of free petrol per week, while owners of vehicles up to 800cc were getting Rs1,000 in relief on 10 litres of petrol. The subsidy was being provided at petrol pumps, and there was no fuel supply problem, he added.

He said the impact of the regional conflict on petroleum prices was being felt across countries, but the government was providing targeted relief to motorcyclists, rickshaw and loader operators, and users of small cars.

Responding to a supplementary question, Mr Kayani said advance tax rates on property purchases and sales had been reduced to lower transaction costs.

The government was also preparing a broader package for the construction sector. The Prime Minister`s Apna Ghar scheme offered loans of up to Rs10m at an interest rate of 5pc. Thousands of people had benefited from the scheme, and loans worth about Rs100bn had beenapproved,he added.

Compensation for damaged homes Minister of State for Interior Tallal Chaudhry informed the Senate that Rs117bn had been paid incompensation for homes damaged in terrorismaffected areas of Khyber Pakhtunkhwa, while about Rs65bn remained to be disbursed.

Replying to a calling-attention notice moved by Senator Dost Muhammad regarding the non-disbursement of rehabilitation and compensation funds to displaced residents of South Waziristan who had lost their homes and livelihoods during security operations in 2008 and 2009, he said an initial survey in five agencies had identified 105,744 damaged houses, including 66,989 fully damaged and 38,755 partially damaged.

In South Waziristan, he added, a subsequent survey recorded 113,716 houses, of which 109,312 had completed the survey process. Under the plan, owners of fully damaged houses were to receive Rs400,000 each, while those whose houses were partially damaged were to receive Rs160,000. Payments began in 2014 and continued in subsequent years, he added.

Tallal Chaudhry said the federal and provincial governments had conducted a special audit after the Senate Standing Committee on Safron raised concerns about the distribution of funds and recommended that further payments be withheld.

The audit process was before the DepartmentalAccounts Committee, whose meeting was pending.

The matter would then be placed before the Safron committee. The federal government was ready to provide the remaining funds, he added.