Fuel fears dominate Senate as winter looms
Concerns over Pakistan's petroleum supplies amid escalating tensions in the Middle East dominated the Senate proceedings on Friday, with lawmakers demanding clarity on the government's contingency plans even as the finance minister maintained that there was no fuel shortage.
The house, met here with acting Chairman Syedal Khan Nasir in the chair, also debated the use of the carbon levy, relief in the super tax and compensation for civilians affected by operations in South Waziristan, while complaints against Federal Board of Revenue (FBR) officials were referred to the relevant standing committee.
Pakistan Peoples Party (PPP) Senator Sherry Rehman questioned whether the country would have sufficient petroleum supplies in December and urged the government to brief parliament on its contingency and possible rationing plans.
She said renewed attacks on Iran and the escalating conflict in West Asia had heightened uncertainty over energy supplies, with implications for economic stability and ordinary citizens. "What is the government's plan for the availability of petroleum products? Will there be rationing? Members of Parliament have concerns whether petrol will be available till December," she said, insisting that the government must address these concerns.
Rehman said Pakistan relied on imports for nearly 70% of its liquefied petroleum gas (LPG) requirements, while domestic production accounted for the remaining 30%. She said the country had received five LPG cargoes last year, compared with only two expected this year, and called for a clear supply plan to be presented before parliament.
However, Minister of State for Finance and Revenue Bilal Azhar Kiani said there were no fuel supply problems. He told the house that more than 10 million people were benefiting from the government's targeted fuel subsidy scheme, while Rs1,676 billion had been budgeted under the petroleum levy for the current fiscal year.
He said the government was providing targeted relief to motorcyclists, rickshaw and loader operators, and users of small cars to mitigate the impact of regional tensions on petroleum prices.
Senate Opposition Leader Allama Raja Nasir Abbas also warned that conflict threatening key energy routes could aggravate Pakistan's energy difficulties. Linking the external crisis to domestic shortages, he said Punjab was already facing a flour shortage while the country was experiencing an LPG shortage. He also called on Pakistan to mediate between Yemen's Houthi movement and Saudi Arabia.
Rehman also questioned the utilisation of the carbon levy imposed on petroleum products, alleging that the proceeds were being absorbed into general federal revenues rather than spent on environmental protection and climate resilience projects.
Citing a meeting of the Senate Standing Committee on Climate Change, which she chairs, she said the finance ministry had acknowledged that the levy was not being spent on environmental projects. She argued that the money was transferred to the Federal Consolidated Fund without being earmarked for climate action.
Referring to water shortages in Balochistan and the absence of resilience schools in Sindh, Rehman questioned how the levy's proceeds were being distributed among the provinces. She said the levy should not continue in its existing form unless it was restructured to ensure that the money was ring-fenced for climate mitigation and resilience measures.
Separately, Minister of State Kiani informed the Senate that the super tax had been abolished for businesses with annual incomes ranging from Rs150 million to Rs500 million, while the rate for those earning Rs500 million or more had been reduced from 10% to 8%.
The house also took up a calling-attention notice regarding compensation for civilians affected by security operations in Khyber-Pakhtunkhwa and the former Federally Administered Tribal Areas in 2008 and 2009.
Responding to the notice, Minister of State for Interior Talal Chaudhry said Rs117 billion had been distributed among affectees in South Waziristan. The release of another Rs65 billion in outstanding payments was awaiting completion of an audit and proceedings before the relevant committee, he added.
During the Question Hour, lawmakers expressed dissatisfaction with the government's response to complaints against FBR and Pakistan Customs personnel. The matter was referred to the relevant standing committee for further consideration.
The proceedings ended after Senator Falak Naz Chitrali pointed out a lack of quorum. A headcount confirmed that the required number of members was not present, prompting the chair to adjourn the session until 4pm on Monday.