------------------------------------------------------------------- Week Ending : 07 September, 1995 Issue : 01/35 -------------------------------------------------------------------

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------------------------ Karachi ..........2 MQM men killed in "encounter" ..........7 killed, dozen vehicles set ablaze in city ..........Six die as MQM protest hits life in city MQM ..........PM didn't offer 'ceasefire' ..........Recording proves PM used word 'ceasefire' ..........Talks to continue ..........Troublemakers to be shot at sight: Babar ..........FIR registered against Altaf, says Babar ..........Altaf seeks views on return to Pakistan Punjab Crisis ..........PML(J) MPAs seek Wattoo's ouster ..........Chattha, Saroop discuss Wattoo's replacement ..........Punjab Assembly suspended ..........Nawaz condemns 'attack on democracy' ..........PM in Lahore amid hectic activity ..........PML fields Pervaiz as chief minister ..........PPP claims support of 137 MPAs Pakistan-India ..........Pakistan's raising of Kashmir issue upsets India ..........Gilani's speech was toned down to avoid Indian reaction ..........Delhi refuses to exchange Pakistanis for hostages ..........Chavan blames ISI for Beant's murder ..........Islamabad condemns insinuation Brown amendment ..........Crucial Congress session tomorrow ..........Brown's amendment withdrawn Begum Tyabji: the end of an era Separation of judiciary from executive put off again Private jail in city busted Bureaucracy to undergo reshuffle at top Benazir advocates more rights for women PM's address evokes enthusiastic response SSP patron freed PAF to acquire 32 Mirages Official killed, Envoy hurt as Pak embassy stormed in Kabul Islamabad condemns attack on embassy -------------------------------------


------------------------------------- IFC may collaborate with NDLC to form joint venture firm Rs 1.2bn bunglings in Punjab Import duty on newsprint cut to 1 pc STOCK EXCHANGE Ex-BCCI official rearrested Court orders release of $393m seized from BCCI Donors raise objections over SAP execution PM orders probe into misuse of SAP funds Singapore firm gets New City contract Minister's disclosure shocks traders FACC seeks details from PIA on lawsuits in NY FACC threatens to abandon task 2 electronic giants may drop plans to invest in Pakistan ---------------------------------------


--------------------------------------- The bare bones Ardeshir Cowasjee The sleaze sweepstakes Mazdak Supply side of corruption Omar Kureishi An idea touching the depths of obscenity Ayaz Amir To what purpose? Editorial Column An inexcusable failure Editorial Column Crisis in Punjab Editorial Column -----------


----------- Jansher wins 7th Hong Kong title Sri Lanka collapse in Pindi match Salim files writ in High Court


------------------------------------------------------------------- 2 MQM men killed in 'encounter' Staff Report KARACHI, Sept 1: Two more MQM activists died in an "encounter" with police in Gulshan-i-Iqbal on Friday evening which their party described as extra-judicial murder. Baber, Malir sector committee member, and Yameen, a member of MQM Nawabshah, were riding in a car when they were intercepted by a police party of the CIA. In the encounter, the two were killed instantly in their vehicle. The CIA Saddar claimed that a spokesman for the police will issue an official handout but it was not be received till late on Friday night. The MQM, however, claimed that both the workers were stopped by rangers and police during snap checking. "After their identification by a PPP terrorist Moeen Kalia, the two were given a severely beaten. Later, they were asked to leave the area. They were hardly 10 yards away, when the rangers fired from the back," the MQM claimed. TORTURE CELL RAIDED: Police on Friday safely recovered trainee police constable Hafeez Awan and his friend Abul Qasim, during a raid on a torture cell in Nasir Colony, Korangi. The two were kidnapped by some youths in Korangi. The kidnappers later demanded Rs 50,000 for their release. DWS 950904 ------------------------------------------------------------------- 7 killed, dozen vehicles set ablaze in city ------------------------------------------------------------------- Staff Report KARACHI, Sept 3: Seven people were killed and about a dozen vehicles were set on fire in an upsurge of violence in the city on Sunday. Youths took to the streets in parts of districts Central and South in the late afternoon, intercepted public and private vehicles and put them to torch. In the Alfalah area of Malir, rangers and police cordoned off parts of the locality, picked up scores of men and carried out house-to-house search. The police claimed the operation was aimed at flushing out terrorists. Residents, however, accused the rangers of insulting behaviour and alleged that they had misbehaved with the women and used abusive language. It could not be known how many suspects were finally taken to rangers' interrogation centres. Four armed men intercepted a passenger coach in Orangi, forced two police constables out of the vehicle, killed one of them on the spot and kidnapped the other. DWS 950905 ------------------------------------------------------------------- Six die as MQM protest hits life in city ------------------------------------------------------------------- Staff Report KARACHI, Sept. 4: Large areas of the city ground to a halt on Monday on the MQM's call for a strike to protest against the "humiliation of= its women activists" at the hands of the police and rangers. The government's order to shoot "trouble-makers" at sight, could not= deter protesters who took to the streets early in the morning, erected barricades, lit bonfires and set ablaze at least 10 public and private vehicles, nearly all of them in the Central district. Six people, including a policeman, fell victim to sporadic violence. Armed youths exchanged fire with law enforcement agencies, injuring three policemen and two rangers. The overnight violence, a stern warning by the interior minister and the mounting tension between the government and the MQM, made the strike successful as most of the people preferred to remain indoors fearing street violence in many localities. DWS 950901 ------------------------------------------------------------------- PM didn't offer 'ceasefire' ------------------------------------------------------------------- Staff Report ISLAMABAD, Aug 31: An official spokesman has clarified that Prime Minister Benazir Bhutto, did not "offer a ceasefire" to the MQM as was reported in the Press. He denied that the term was used by the prime minister at any point during her entire discussion. The spokesman quoted from the transcript of the prime minister's statement to remove any doubts about her words. These were: "If we are to have an agreement on Local Bodies, then we must have at least six months of peace. We must give confidence to the people of Karachi that they can exercise their vote freely. So we must have six months of peace". DWS 950903 ------------------------------------------------------------------- Recording proves PM used word =91ceasefire' ------------------------------------------------------------------- Bureau Report ISLAMABAD, Sept 2: An official denial of the prime minister's having used the term "ceasefire" in her recent meeting with Islamabad-based foreign journalists is factually incorrect, as proved by the recordings of the meeting. The denial, issued by a government spokesman and released through the official news agency, APP, had stated that the "word ceasefire was not used by the prime minister at any point during her entire discussion". The taped recording of the prime minister's reply proves that she used the word not once but twice. The prime minister's reply to a question is reproduced below without any editing. She said: "Yes, Yes. If they have six months of ceasefire we are willing to discuss with them local bodies timetable as the first step, then a second ceasefire for another six months from the time of the local bodies and so on, and then power sharing formula between them and us and then another period of six months of peace. Yes, we are prepared. We want a political solution with the Altaf group. They are Pakistanis, they are part of us, we are a part of them. If some have gone on the wrong path we want to bring them back to the right path and we want to give them the incentive to bring them back". Asked about the wisdom of this "needless exercise", one of prime minister's media managers replied:" The word ceasefire created the image of war and of giving too much weight to Altaf's people." DWS 950904 ------------------------------------------------------------------- Talks to continue ------------------------------------------------------------------- Shamim-ur-Rehman KARACHI, Sept 3: At the end of the sixth round of talks here on Sunday, both the government and the MQM admitted that progress could not be made, but agreed to resume negotiations here again on Thursday, Sept 7. "It is very unfortunate that because of the strike call, the desired progress could not be achieved," said the chief government negotiator, N. D. Khan after the talks. Mr Khan, who was optimistic about the final outcome, told reporters that the main thrust of the talks was on how to restore peace and normality in the city, as both sides "frankly" expressed their respective points of views and assessment of the prevailing situation. The law minister and the chief government negotiator was of the view that readiness of both the sides to meet again was a "positive development." "We have taken exception to the strike call which is totally uncalled for," said the chief government negotiator emphasising that "if such a call was not given, some concrete result of the negotiations held during the last two sessions would have emerged today." But according to Dehalvi the strike call was their "democratic right, and if Mohajir localities continued to be besieged by law enforcement agencies, custodial killings and mass arrest continued, no power on earth can prevent Mohajirs from exercising this right." He reiterated the government's offer of power-sharing and holding local body elections within six months if peace was restored. Dehlavi contended that whenever the date for negotiations came nearer "some secret hand " conspired to pitch Mohajirs against other communities by "engineering killings." When asked about Naseerullah Babars statement in which stated that anyone seen carrying a weapon and trying to disturb peace during the strike, would be shot dead, Mr Dehlavi said: "It is unconstitutional and illegal and should be condemned and the interior minister should be tried for inciting murder." DWS 950904 ------------------------------------------------------------------- Trouble-makers to be shot at sight: Babar ------------------------------------------------------------------- Staff Report KARACHI, Sept 3: Interior minister Naseerullah Babar on Sunday warned that anyone trying to disrupt normal life and found to be using weapons during the MQM's protest day on Monday, would be shot on sight. He urged the people at large to "shed the burden of fear" and assured them the government's "protection". The MQM has called for a "peaceful day of protest" in Sindh on Monday to protests against "continued arrests, insults and torture of Mohajir women" by the government. Babar was of the view that the MQM would "not be able to impose" its decision as it did in the past though he agreed that the Central district might be affected. When his attention was drawn to the alleged high-handedness and maltreatment of innocent people by the law-enforcement agencies, the interior minister said the "government activities are not discriminatory against the Urdu-speaking people but against terrorists". Replying to a question, he ruled out the possibility of any foreign intervention in Pakistan owing to the prevailing law and order situation in Karachi, which, he claimed had improved considerably during the past two months. DWS 950905 ------------------------------------------------------------------- FIR registered against Altaf, says Babar ------------------------------------------------------------------- Staff Report KARACHI, Sept. 4: In a televised statement, Federal Interior Minister Naseerullah Babar said that an FIR had been registered against MQM's exiled chief, Altaf Hussain and the members of the MQM Co-ordination Committee in connection with inciting people for murder and arson. DWS 950906 ------------------------------------------------------------------- Altaf seeks views on return to Pakistan ------------------------------------------------------------------- Correspondents Report LONDON, Sept. 5: MQM leader Altaf Hussain has asked his supporters whether they would like him to return to Pakistan. He said if his supporters, who had in the past advised him to stay abroad, asked him to return he would without wasting any time. A women's delegation of the MQM (UK) yesterday presented a petition to the Chinese embassy in London, copies of which have already been sent to heads of delegations attending the UN-sponsored women's conference in Beijing. The petition accuses the Pakistan authorities of alleged "high-handedness in arresting and maltreating women supporters of the MQM". The delegation members later entered the Pakistan High Commission premises to hand over a copy of the petition. The police was called in by the High Commission officials, but it allowed the women to disperse peacefully. DWS 950901 ------------------------------------------------------------------- PML(J) MPAs seek Wattoo's ouster ------------------------------------------------------------------- Bureau Report LAHORE, Aug 31: Four important leaders of the PML(J), including Punjab Assembly Deputy Speaker Mian Manzoor Ahmad Mohal, came out strongly on Thursday against their chief minister. They said if the PDF coalition in the Punjab had to be saved, Manzoor Wattoo must be replaced as chief minister. Speaking at a news conference, MPAs Manzoor Mohal, chief minister's advisers Ahmad Hasan Khan and Chaudhry Sadaqat Ali and Mian Atta Muhammad Maneka said newspapers had been wrongly briefed about Wednesday's parliamentary meeting of the PML(J) in which it was claimed that all members supported Wattoo remaining as chief minister. They said differences in the PDF had come to light with greater intensity in the recent past and this was because of the policies of Wattoo and not because of the PML(J) as a party. They said as decided in an earlier PML(J) meeting, it was Chattha who would settle the issue. His decision would be acceptable to all partymen and the PPP leadership. "It is clear that the entire system should not be put at stake just to protect a single man." Atta Maneka said it was Wattoo's responsibility to quit to keep the party intact. "His own political well-being also lies in walking away as desired by his colleagues." He claimed that as many as 30 PML(J) MPAs wanted removal of Wattoo. Those who were proclaiming to be loyal to Wattoo were doing so only to protect their ministries. Maneka said the PPP had more than 100 MPAs in the Punjab Assembly and it had the right to change Wattoo if it so desired. DWS 950903 ------------------------------------------------------------------- Chattha, Saroop discuss Wattoo's replacement ------------------------------------------------------------------- Nasir Malick ISLAMABAD, Sept 2: The Pakistan Muslim League (J) and the Pakistan People's Party have decided that in case of replacing Wattoo or bringing a vote of no-confidence against him, the move will be made by PML (J), a PDF source said on Saturday. The decision was taken at a meeting, which was attended by PML(J) President Hamid Nasir Chattha, Punjab Governor Saroop Khan and Senior Punjab Minister Makhdoom Altaf. The source said Mr Chattha had made it clear to the PPP leadership that in case of a change, the chief ministership of Punjab would be retained by his party. However, before making a final move, the source said, Wattoo would be afforded an opportunity to be heard in person by his party chief. The source said if the PML (J) decided to remove Wattoo, the party chief would write a letter to the Punjab governor, informing him of his party's decision on withdrawing Wattoo as the chief minister. He would be requested to ask the new party nominee to take a vote of confidence. Such a move, the source said, would save the PPP from coming into any direct conflict with Wattoo. "He was recommended for the chief ministership by the party which can withdraw him anytime and replace him with some other party member," the source added. "You should keep an eye on today's development in Punjab where Arif Chattha, a distant relative of Hamid Nasir Chattha, has left Wattoo and joined the dissident Manzoor Mohal group", he said. "That is a clear indication that things are likely to change very soon", he added. The dissident group of PML (J) MPAs claim it has the support of many more MPAs who would quit Wattoo's team at the last minute. While the PPP leadership has reportedly asked Hamid Nasir Chattha to become chief minister himself, there are at least two candidates for the same position =97 Manzoor Mohal and Khush Akhtar. The source said Chattha had made it clear to his party colleagues that he would decide about the new nominee after meeting his party MPAs in Lahore on Sunday. DWS 950906 ------------------------------------------------------------------- Punjab Assembly suspended ------------------------------------------------------------------- Mohammad Malick ISLAMABAD, Sept. 5: President Farooq Leghari suspended the Punjab Assembly on Tuesday by invoking Article 234 of the Constitution and directed Punjab Governor Raja Saroop Khan to take control of the affairs of the province. According to unconfirmed reports, the governor has appointed Punjab People's Party President Mushtaq Awan as his principal adviser, a move tantamount to his appointment as the acting chief minister. The presidential proclamation came as an expected culmination of 48 hours of hectic political activity in Punjab , which started with an open rebellion against the now-suspended chief minister Mian Manzoor Wattoo on Monday evening and reached a crescendo on Tuesday evening with the resignation of all PPP members of the Wattoo cabinet, along with four other non-PPP members. The president was reportedly =91advised' by the Prime Minister during their meeting. The decision to suspend the assembly was conveyed to the concerned officials by 10 p.m. It may be recalled that in the case of the suspension of the NWFP Assembly, the court, in its decision on a petition of Sabir Shah and others, had ruled that the Prime Minister's advice in this case was binding on the president and therefore he did not have any other option except to accede to it. According to a close confidante of PML(J) President, Hamid Nasir Chattha had not been taken into confidence by the prime minister. Chattha reportedly received a phone call from the prime minister at around 11.55 p.m., and she is reported to have told Chattha that the decision had to be taken in a bit of a hurry". The source said that the prime minister told Chattha that she wanted the PDF alliance to continue and the she would call on him in Lahore on Wednesday. The prime minister did not hint at Wattoo's replacement being from the PML-J side. According to Chattha camp insiders. resentment is running high at the "bulldozing" of their government hut the party has yet to decide about its future course of action and a lot is going to depend on the first meeting between Chattha and Ms Bhutto the source added, however, that even in the event of PML-J adopting a harsh stance, Wattoo would no longer be their candidate for the job. In technical terms Wattoo remains the chief minister of Punjab but without any executive authority. In political terms what his erstwhile PPP allies need to do now is to muster the required number of votes in the House after which the president would revoke his suspension and the governor, in turn, would ask Wattoo to take a vote of confidence >from a 'reformed' House. According to PPP stalwarts, the numbers game has to be won before the expiry of the first two month term "because the last thing the Centre would want is to face the verbal bickering in a joint session" as put by PML leader Khawaja Asif. According to a top PPP leader, requesting anonymity, the president "had to be asked" because the PPP provincial set-up had failed to muster the requisite majority inside the house. "It left the PPP members of the Wattoo cabinet with no option but to resign and create an atmosphere of political chaos" in the province. On Sunday evening, PML turncoat Haji Nawaz Khokhar also met ASSP chief Maulana Ziaur Rehman Farooqi, and offered the withdrawal of a substantial number of criminal cases registered against him and his party in exchange for the support of the two ASSP seats in the Punjab Assembly. While efforts were continuing to garner seats even in ones and twos, a greater reliance was placed on an affirmative response by the president. With the president leaving on an official visit to Turkmenistan on Sept. 6, the matter took on an added urgency because the PPP camp was sure that even a few hours delay was all that Wattoo required to cut a deal with PML or win back most of his disgruntled colleagues. The camp of the beleaguered Punjab chief minister, meanwhile, had appeared highly confident till the last minute about riding out this toughest challenge to date to his hold on power. Commenting on the resignation of the four non-PPP members of the Wattoo set-up along with the en masse resigning of the PPP ministers from the cabinet, a close confidante of Wattoo said that the "chief minister had taken the decision to sack the rebels in a meeting at around 3 p.m.". Blaming a leak, he said that the rebels had managed to pre-empt the chief minister's move in an attempt to take political mileage out of this action. While the PPP leadership was trying to give the impression of the en bloc resignations of its ministers in Punjab as a "decision of the provincial party high command", no one in PML-J camp bought the story. As one PML-J leader put it: "You have to be naive to imagine that Makhdoom Altaf and Co. could have dared take a decision of this magnitude and create a situation which harboured the potential of exploitation by PML-N and could have serious consequences for the PPP government in the centre". According to the PML(J) camp, the prime minister "had to have given the signal for this prior to her departure for China so she could come back, claim ignorance of the extreme development and take the stance that since her party had now gone so far in its anti-Wattoo crusade there was limited manoeuvring room left for her. She would then offer two stark choices to Chattha, either replace Wattoo or she would have no option but to bring in a PPP man". Until the evening of Sept. 1 the situation had appeared very much in control, when it was conveyed to him by certain friends in PML-N that Nawaz league would support him in the event of a no-confidence motion provided he promised to hold elections after surviving the vote, and the two leagues had agreed on a seat sharing formula. The parliamentary opposition, meanwhile, has decided to requisition a special session of the National Assembly to discuss the Punjab situation and also to take the matter before a court of law. DWS 950906 ------------------------------------------------------------------- Nawaz condemns =91attack on democracy' ------------------------------------------------------------------- Bureau Report LAHORE, Sept. 5: Opposition leader Nawaz Sharif has condemned suspension of the Punjab Assembly as an undemocratic act and an unacceptable attack on democracy that has "again exposed President Farooq Leghari as a PPP jiyala, hand-in-glove with Prime Minister Benazir Bhutto to destroy the system." In a statement issued late on Tuesday night, he said the suspension of the Punjab Assembly was the "action replay" of the NWFP Assembly suspension in February 1994. He said the entire democratic system had been put in jeopardy with the president a party to the fascist ambitions and palace intrigues of the PPP. He said the situation was bound to lead to horse-trading, blackmailing and corruption. The decree, he said, was aimed at depriving the PML of its right to form a government in Punjab. It was only meant to facilitate the PPP to create an artificial majority in the Punjab Assembly through a "grand horse-trading operation." Sharif said there was no legal or moral basis for "this blatant subversion of the Constitution." He said the PML was firmly of the conviction that the democratic process must proceed unhindered so that national institutions could flourish. DWS 950907 ------------------------------------------------------------------- PM in Lahore amid hectic activity ------------------------------------------------------------------- Bureau Report LAHORE, Sept. 6: A day after having the Punjab government of Manzoor Wattoo dismissed, Prime Minister Benazir Bhutto flew into Lahore on Wednesday and immediately went into a huddle with her partymen. She had a crucial meeting with PML (J) chief Hamid Nasir Chattha, while the opposition PML(N) parliamentary party, meeting under the chairmanship of Mian Nawaz Sharif, decided to field Chaudhry Pervaiz Elahi, acting leader of the opposition in the Punjab Assembly, as its nominee for chief ministership of the province. In a change of previous policy, the PML(N) also decided to accept in its fold PML (J) men who were not ideologically committed to the PPP. Wattoo, now openly under attack from the official media for alleged corruption and wrongdoing, also met a number of partymen during the course of the day. Meanwhile, a government notification on Wednesday evening announced large-scale transfers of officials, including many key people in the chief minister's secretariat. The Punjab chief secretary, Javaid Qureshi, was transferred on Tuesday night shortly after the dismissal of the Wattoo administration and promulgation of Governor's rule. DWS 950907 ------------------------------------------------------------------- PML fields Pervaiz as chief minister ------------------------------------------------------------------- Ashraf Mumtaz LAHORE, Sept. 6: Opposition leader Nawaz Sharif kicked off his party's campaign to form a PML government in the Punjab by declaring on Wednesday that his doors were open for "good people" in the PML(J) who= "had not stabbed the PML(N) in the back and who were ideologically opposed to the PPP". Addressing a meeting of the opposition's parliamentary party, Sharif nominated Chaudhry Pervaiz Elahi as his party's candidate for the office of Punjab chief minister, now vacant following the imposition of governor's rule in the province on Tuesday. The opposition's meeting was of the view that the Punjab Assembly was not suspended by Tuesday's proclamation and the opposition would requisition a session on Thursday. The meeting had been called to elicit opinion about the opposition's future course of action in the wake of the crisis caused by differences between the PPP and the PML(J). The decision to accept "defectors" and PML(J) legislators was taken by party leaders in recent meetings but was formalised at Wednesday's parliamentary session. Most of those who were invited to speak requested the opposition leader to "relax rules" to allow legislators from other parties to provide the "head count" required to form a government in the Punjab. In the past, Nawaz Sharif was firm in saying that there was no room for "political turncoats" in his party and that he would promote the "politics of principle" in the country. Justifying the change of heart which will allow the "defectors" to rejoin the PML(N), Nawaz Sharif said there were also good people in the PML(J) who never resorted to hypocrisy, nor stabbed the opposition in the back. "We are ready to accept them back." Warning his party leaders that the government could launch a fresh campaign of victimisation against them to force them to change their loyalties, Sharif exhorted them to stay steadfast as, he said, they had been doing for the last two years. The opposition leader declared that his party would offer any sacrifice to prevent the PPP from forming its government in the Punjab. He directed leaders of the PML(N) and its allied parties to sit together to map out their future course of action. After that, he proposed, they should also hold meetings with leaders of other parties. Mr Nawaz Sharif claimed that the opposition would shortly get the support of 137 MPAs in the Punjab Assembly. At present, its parliamentary party comprises 97 MPAs. DWS 950907 ------------------------------------------------------------------- PPP claims support of 137 MPAs ------------------------------------------------------------------- Mahmood Zaman LAHORE, Sept. 6: The People's Party Punjab leadership told the Prime Minister on Wednesday that it enjoyed a comfortable majority in the legislature and was in a position to form a government in the province. The Prime Minister, who arrived in Lahore and met with party leaders and MPAs, was quoted as saying that the sooner the assembly was restored, the better. There were indications that the Governor's rule in the Punjab might extend to a maximum of two weeks. The PPP sources claimed that the Punjab Assembly would be restored much before the end of the current month. PPP, according to sources, was trying to form the government by next Sunday. As and when a signal from the PPP would be given, the president would withdraw his proclamation under Article 234 of the Constitution directing the Punjab governor to assume the administrative control of the province. Makhdoom Altaf and Mushtaq Awan are understood to have presented a list of 137 MPAs to the prime minister claiming that the PPP was in a comfortable position to form a government in the Punjab. Makhdoom Altaf is being tipped as the PPP nominee for chief ministership who has been assigned the task of forming his cabinet. He has already started the exercise and is believed to have given a word to the prime minister that the task would be accomplished in a day or two and the PPP parliamentary party would be in a position to show its strength by Sunday. PDF INTACT: According to PPP sources, the PDF is intact and the PPP will take along the PML(J) in the governance of the province. Cabinet and semi-cabinet slots will be offered to the PML(J) MPAs who resigned as chief minister's advisers on Tuesday. He hoped that PML(J) President Hamid Nasir Chattha would also lend his support to the PPP in forming the government. But, according to sources, the power-sharing formula, agreed to in October 1993 when the PDF governments were formed at the Centre and the Punjab in the beginning and later in the NWFP, would have to be changed. The new formula would give chief ministership to the PPP and "reasonable number" of cabinet and semi-cabinet positions to the PML(J) people. DWS 950901 ------------------------------------------------------------------- Pakistan's raising of Kashmir issue upsets India ------------------------------------------------------------------- Masood Haider UNITED NATIONS, Aug 31: Angry and upset with Pakistan's delegation which raised the Kashmir issue at the Inter-parliamentary Council meeting at the United Nations on Wednesday, the Indian opposition leader Atal Bihari Vajpayee declared: "It is Pakistan which is flouting the United Nations resolution by not withdrawing its forces from Kashmir." Talking to reporters after the afternoon session of the Council meeting being held here to mark the 50th anniversary of the United Nations, Mr Vajpayee feigned complete ignorance of the UN Security Council's resolutions and as to what they stipulate and mean. In Mr Vajpayee's estimation "the UN resolutions only call upon Pakistan =97 the occupying force to vacate the Jammu and Kashmir Area." "You people create problem every time. You know the Kashmiri people themselves acceded to India. First, the Maharaja then the Kashmiri parliament both decided to go with India." Vajpayee added: "In my speech on Thursday I will reply to the charges of Pakistan's representative". When pointed out that the UN resolutions call upon both India and Pakistan to withdraw from the occupied areas and hold a plebiscite under the auspices of the United Nations, he declared: "It's untrue, Pakistan is the occupying force. Kashmiris acceded to India willingly and even the United Nations accepted it. The UN Security Council never asked India to withdraw its forces", he added. The part of Pakistani speech which angered Mr Vajpayee had a reference to Security Council's resolution which remain unimplemented and it called upon the United Nations and the parliamentarians to help resolve the Kashmir issue. Pakistan stressed that the unresolved Kashmir issue continues to "endanger peace and security in the South Asian region." Since the theme of the three-day conference is "Peace and Development", Pakistan availed of the opportunity to underscore the issue. Earlier, Indian delegation to the meeting was not allowed to exercise a right to reply sought by it, following the speech by Pakistan in which the United Nations was exhorted to resolve the Kashmir issue. National Assembly Speaker Yousuf Raza Gilani in his speech asked the international community and parliamentarians to help resolve the Kashmir issue in accordance with the relevant Security Council resolutions. Gilani also emphasised that the Kashmir issue would continue to endanger peace and security in the region as long as the people of Kashmir were denied their right to self-determination. As soon as Mr Gilani ended his speech, the Indian delegate rose from his seat and sought a right to reply. The Indians were particularly incensed because in the statement in the morning made by Speaker of Lok Sabha, Shivraj V. Patil, they did not mention the Kashmir dispute. SPEECH TONED DOWN: In a strategy, the speech delivered by the National Assembly Speaker Yousuf Raza Gilani was toned down, so as to avoid swift action by the Indian delegation in seeking a right to reply. In the original speech Mr Gilani was to refer to India's brutal suppression of the Kashmiris' freedom struggle and its consistent violations of human rights. But, despite the toning down of the speech the Indians reacted harshly and sought a right of reply. DWS 950902 ------------------------------------------------------------------- Gilani's speech was toned down to avoid Indian reaction ------------------------------------------------------------------- Masood Haider UNITED NATIONS, Sept 1: In an unprecedented gesture of goodwill towards the hostile Indian delegation at the Inter-parliamentary Council's meeting here. Pakistan's ambassador to the United Nations, Ahmed Kamal, asked one of the second-secretary at the Pakistan's mission to the United Nations to show the approved original text of Speaker Yousuf Raza Gilani's speech to the Indian mission to ascertain whether "they have any objection." Informed sources told Dawn that Ambassador Kamal had instructed the second secretary at a meeting on Wednesday to take the Indians into confidence as he deemed it wise to get India's approval so that they did not exercise their right of reply after the speech. While almost every officer at the Pakistan mission here was surprised at the suggestion of Ambassador Kamal, only objected and was told "You don't understand this, you are new." Meanwhile, the original text condemning human rights abuses in held Kashmir which had been approved by NA Speaker Gilani was distributed to the media here. But, when the Indians informed Ambassador Kamal about their objections, the text was pulled hours before delivery. Mild language, acceptable to the Indians was used with an understanding that they would not exercise their right to reply. The official news agency APP had run the story with the original text, and it was instructed by Ambassador Kamal to kill the story. APP correspondent here made an official call to Islamabad to stop the dispatch. But, interestingly, when Mr Gilani delivered his speech on Wednesday afternoon, without mentioning India's human rights abuses in the occupied territory and only asking the international community and the United Nations to seek enforcement of the UN mandate, Indian delegates jumped up and raised objection seeking a "right of reply." The strategy devised by Ambassador Kamal had "backfired." The Indian delegates meanwhile, raised much hue and cry. They went around telling every delegate and journalist at the meeting that "in fact it was Pakistan which was violating the UN resolution." On Thursday morning India's opposition leader Atal Bihari Vajpayee, who is a member of the Indian delegation here, raised serious objections to Pakistan's reference to India, saying: "It was not the forum to discuss the issue since the Simla agreement signed between the two countries provides the mechanism for the consideration of the matter." But Vajpayee did not stop there, he meant that Pakistan was sponsoring terrorism when he said: "The problems between India and Pakistan can be resolved only through bilateral discussion and dialogue, and not through terrorism, low intensity warfare or war." So the wisdom of checking with Indians before the delivery of the speech did not pay off. Diplomats and observers here say that Pakistan should have assumed that any mention of the word Kashmir at any forum would anger Indians anyway and they would have objected. So, a stronger language in Speaker Gilani's speech would not have mattered, instead he would have made a more vigorous case for the Kashmiris by mentioning India's human rights abuses. DWS 950902 ------------------------------------------------------------------- Delhi refuses to exchange 'Pakistanis' for hostages ------------------------------------------------------------------- Staff Report SRINAGAR, Sept 1: According to Indian officials, India has rejected the latest demands by guerrillas in occupied Kashmir for the release of three jailed Pakistani activists in exchange for four Western hostages they are holding. The guerrillas, who earlier this week complied with demands from the authorities for proof the hostages were alive and well despite death threats, had indicated their patience was wearing thin and wanted a reciprocal gesture from India. Al-Faran has offered to release American Donald Hutchings, German Dirk Hasert and Britons Keith Mangan and Paul Wells if India freed 15 Muslim activists from prison. Among the 15 are three Pakistanis, belonging to the Harkat-ul-Ansar militant group fighting Indian rule on occupied Jammu and Kashmir. India has said it will not swap militants for the hostages, arguing such a bargain would encourage future kidnappings. New Delhi has said the three jailed Pakistanis are among 'hard-core militants' belonging to Harkat-ul-Ansar, which the government says is linked to Al-Faran. Harkat-ul-Ansar denied the association with Al-Faran and condemned the abductions. DWS 950905 ------------------------------------------------------------------- Chavan blames ISI for Beant's murder ------------------------------------------------------------------- Umashanker Phadnis NEW DELHI, Sept. 4: The Indian Home Minister, S.B. Chavan, has held Pakistan's Inter-Services Intelligence (ISI) responsible for the assassination of Punjab Chief Minister Beant Singh and asked the External Affairs Minister to take up the matter with Islamabad. Although several legislators have already made such allegations this is the first time that a senior member of the government has levelled the charge. Chavan cited the Beant Singh assassination as an instance of the "Pakistani effort to step up its activities to destabilise the government in (East) Punjab and (occupied) Kashmir." He said "I am sure that my colleague in the External Affairs Ministry will be able to protest against the way Pakistan is trying to destabilise Jammu and Kashmir and other areas of the country. The recent incident is quite a serious one." Chavan alleged that "terrorists are being given asylum in Pakistan" and added "I can say without fear of contradiction that the ISI is behind the bomb blast which killed Beant." He maintained that the agency was engaged in training guerrillas before sending them to occupied Kashmir and East Punjab. Although it is generally believed that the assassination was the handiwork of the Babbar Khalsa International, Chavan refused to either confirm or deny it. He was cautious enough to hold the view that it was yet to be established through investigations. According to Chavan, the blast was a case of "security lapse", not of= "intelligence failure" and added "know what kind of information was= available with them (the investigating team) but till the investigation is completed, I do not want to hazard a guess." DWS 950905 ------------------------------------------------------------------- Islamabad condemns insinuation ------------------------------------------------------------------- Staff Report ISLAMABAD, Sept. 4: In what can be termed a retort from the Government of Pakistan they have taken strong exception to Indian Home Minister, S.B. Chavans "ridiculous, unfounded and extremely irresponsible statement". In a press release given to APP, the foreign office has responded in full to all the allegations made by the Indian minister. "The statement is an outrageous ploy to conceal the obvious serious flaws in the security given to the chief minister of Indian Punjab, either because of incompetence or because of an internal conspiracy. Indian Ministry for Internal Security Rajesh Pilot, and Home Ministry officials have already admitted the breaches in the high security cover provided for the chief minister. "It may be recalled that Beant Singh was clearly an unpopular leader who came to power after an election which attracted less than 10 per cent participation from an alienated electorate. This populace had been aggrieved with Indian authorities since the storming of the Golden Temple. "Regrettably the Indian Home Minister has once again resorted to his favourite past-time of accusing Pakistan of involvement in India's internal matters. These accusations are too well understood as myths to be taken seriously by any impartial observer of the Indian scene. "The Government of Pakistan also takes strong exception to the attempts made by Indian authorities as well as security agencies to project a fabricated nexus between the separatist movement in the Indian Punjab and the indigenous freedom movement, led by APHC, for the inalienable right to self-determination in the internationally recognised disputed territory of Indian-held Kashmir. "Kashmir, on the other hand, is not and has never been an integral part of India. It is a disputed territory whose status is to be determined through a UN-supervised plebiscite in accordance with the resolutions of the UN Security Council to which both India and Pakistan are parties. Pakistan extends moral political and diplomatic support in favour of the movement for the implementation of the UN Resolutions." DWS 950905 ------------------------------------------------------------------- Crucial Congress session tomorrow ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Sept. 4: The US Congress returns to work after its summer recess on Wednesday for a session crucial to both Prime Minister Benazir Bhutto and President Clinton, in their own ways. Pakistan would be watching the Congress, specially Senate, on what it does to the Hank Brown Amendment, if it were to be tabled in its original form, seeking release of military equipment and easing of Pressler sanctions. Congressional observers say if no action was taken by Congress on the Brown Amendment, or if meaningless and good-for-nothing changes were made in the Pressler law, it would become almost impossible for Pakistan and the Clinton Administration to give concrete concessions to Pakistan later during the presidential election. And Pakistan's friend Hank Brown would be retiring early next year leaving a gap that Pakistani diplomats in Washington would find very difficult, if not impossible, to bridge. DWS 950906 ------------------------------------------------------------------- Brown's amendment withdrawn ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Sept. 5: Senator Hank Brown's amendment, seeking lifting of economic sanctions against Pakistan under the Pressler law, was withdrawn in the US Senate. Senator Strom Thurmond, Chairman of the Armed Services Committee, got up shortly after Brown had proposed an unrelated amendment to the Defence Authorisation Bill, and moved the motion to withdraw the Brown Amendment. The presiding officer asked the House if there was any objection to the move, with no Senator including Brown objecting, he ordered that the Amendment be withdrawn. Senator Larry Pressler had raised the issue during the debate and had asked for the Brown Amendment to be sent to the Appropriations Committee so that it came up as part of the Foreign Operations Bill. Pressler's demand has apparently been accepted by Brown but it is not clear whether Pressler would soften his opposition to the easing of sanctions imposed in 1990. All indications were that he would not. Congressional observers said the withdrawal of the amendment was a confirmation that Brown had decided not to use the Defence Bill as the vehicle to get his amendment through. The most likely choice for Brown would now be the Foreign Operations Bill, which would come up for discussion in the Senate sometime in the third week of this month. But if Brown decided to shift the vehicle to the Foreign Operations Bill, it would mean going back to the Committee stage and the thumping 16-2 vote which Pakistan got in the Foreign Relations Committee would become redundant. A fresh vote would have to be taken in the Appropriations Committee and if Pakistan did not get an equally thumping majority, as was obtained in the Foreign Relations Committee, Pakistan's case would definitely receive a serious setback, congressional experts said. The move would give another chance to Pressler, John Glenn, Paul Sarbanes and others, who are opposed to Pakistan getting any concessions, to block the Brown Amendment at the Committee stage. "This also means that Pakistan will technically have moved one step backwards, although it is likely that the Appropriations Committee may not debate the whole issue at length. Yet a vote would still be required for inclusion of Brown's Amendment in the chairman's mark-up which would be sent to the House." No immediate explanation was available from Brown's office as to why this had been done. DWS 950903 ------------------------------------------------------------------- Begum Tyabji: the end of an era ------------------------------------------------------------------- Muneeza Shamsie KARACHI: THE passing of Begum Mariam Tyabji marks the end of a rare and remarkable life, which spanned almost an entire century. She was born in 1899 and belonged to one of the most eminent and enlightened Muslim families in the subcontinent. Her famous father, Sir Akbar Hydari, was prime minister to the Nizam of Hyderabad, founded Osmania University and became a member of The Viceroy's Council. Her progressive mother, Lady Amina Hydari, a Tyabji by birth, was the first Muslim woman to be awarded the Kaiser-i-Hind Medal for relief work. Begum Tyajbi's parents set up the Mahboobia Girls School in Hyderabad, where she did her senior Cambridge. She was married in 1917, moved to Bombay and discarded purdah. Her supportive, scholarly husband, Hatim Tyabji, was to become Chief Justice of Pakistan and was the son of Sir Badruddin Tyabji, the third President of the Indian National Congress. She was one of the few Muslim women in Sindh to be out of purdah and was soon involved in community work. She was appointed to the Municipal School Board and became a Visitor to the Lady Dufferin Hospital, the Civil Hospital and Karachi Jail. She participated in the welfare activities of the Empire Ladies Association, was a Justice of the Peace too and an Honorary Magistrate. Awarded the Sitara-i-Khidmat, Begum Tyabji is best known in Pakistan for her services to the blind. She helped establish The Blind Centre, which began with a small building in Keamari with corrugated roofs and which developed into a large federation with its own building and a braille printing press. Begum Tyabji continued to head the organisation and took an active interest in its work, until her fall last March. DWS 950902 ------------------------------------------------------------------- Separation of judiciary from executive put off again ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Sept. 1: The separation of judiciary from executive which was scheduled to take place in the federal capital on Sept. 1 has been deferred by Prime Minister Benazir Bhutto who now wants the implementation of the constitutional obligation in all the provinces and Islamabad at the same time. The prime minister wants consensus among the four provinces and Islamabad on the time frame for the simultaneous separation of judiciary from executive, a source at the prime minister house said. Earlier, the federal government had issued a notification to separate the two organs of the state in Islamabad to set a precedence for the provinces to follow. The district management group which is said to be vigorously opposing the move as it is likely to lose its judicial powers has nothing to do with the deferment, the source said. "The federal government is committed to give effect to each and all mandates of the constitution and any other conjecture and inference is against the facts and intents of the government," the spokesman said. According to the broad outline laid down in the Supreme Court judgement the magistracy would be divided into two different sections i.e., judiciary and executive. The executive magistrate would have powers under Cr. PC for maintaining law and order while the functioning of judicial magistracy would be to examine cases in which evidence is recorded on oath. Judicial magistrates would be placed under the control of High Court. Initially, the Constitution enforced on August 14 1973 had stipulated a period of five years for the separation of executive from the judiciary. Later, martial law government through a presidential order extended the period to 14 years which expired in 1987.
Private jail in city busted
Staff Reporter

KARACHI, Aug 31: Police arrested an Afghan national and his three
accomplices on Wednesday night for running a private jail in a
bungalow in Gulshan-i-Iqbal, and freed five captives from their

Haji Ali Jan, an Afghan Mujahid, used to hold a regular court and
convict Afghan refugees, living in Karachi and allegedly involved in
crimes, police said.

A heavy police force, launched a siege-and-search operation and
recovered five people in chains, from the bungalow. Police said they
were detained in the jail for the last three months.

"Ali Jan is a confidant of Hezb-i-Islami Afghanistan (HIA) chief
Gulbadin Hekmatyar as well as a member of HIA shoora," a HIA spokesman

Talking to Dawn, the spokesman said Ali Jan had fought with occupation
forces in the eastern provinces of the country for many years and
emerged as a first-rank guerrilla leader. He was among those who had
first entered Kabul after its fall to Mujahideen, he added.

The spokesman said it (bungalow) was HIA's international affairs
office, established in 1988, and not a private jail, as alleged by

Bureaucracy to undergo reshuffle at top
Faraz Hashmi

ISLAMABAD, Sept. 4: In a major bureaucratic reshuffle, the federal
government has decided to replace the interior secretary, Punjab chief
secretary and Federal Investigating Agency director-general, Dawn
reliably learnt here on Monday.

"These administrative adjustments might lead to a political change in
the province of Punjab," a source at the Establishment Division said.

FIA Director-General Asghar Malik, who is a close relative and
classmate of Punjab Chief Minister Manzoor Ahmed Wattoo, is likely to
be replaced by Rehman Malik, currently serving as FIA additional

In Punjab, former chief secretary Pervaiz Masood will be called back
to again take over the charge.  Interior Secretary Ilyas H. Mohsin,
who is a distant relative of Mian Nawaz Sharif, will also be
transferred, the source said. Abbas Khan or Javed Qayyum Khan will
replace Mr Mohsin.

In the federal capital, where Inspector-General Police Asad Mehmood
Alvi and Chief Commissioner Afzal Kahutt, who are finding it difficult
to adjust with each other will also be transferred. Mr Alvi will be
sent to Lahore to take over as I.G. while the posting of Mr Kahutt is
yet to be decided.

Saeed Mehdi, who was principal secretary during the Nawaz Sharif era
and later held prize post of the chairman of the Capital Development
Authority is expected to take over as Islamabad Capital Territory
chief commissioner.

Benazir advocates more rights for women
Laura Stark

BEIJING, Sept. 4: Prime Minister Benazir Bhutto emphatically rebutted
the widely-held western misconception about women's rights in Islam in
her opening address to the UN conference on women here on Monday.

She opened her address to the delegates by saying: "I stand before you
not only as a prime minister but as a woman and a mother." She
discussed the collective responsibility to allay widely-held western
misconceptions that Islam is the root of problems for women living in
societies where fundamentalism threatens women's rights.

"I feel a special responsibility to counter the propaganda of a
handful of people that Islam gives women a second class status. Muslim
women have a special responsibility to help distinguish between
Islamic teachings and social taboos spun by the traditions of a
patriarchal society. In distinguishing between Islamic teachings and
social taboos, we must remember that Islam forbids injustice. It
treats women as human beings in their own right, not as chattels. A
woman can inherit, divorce, receive alimony and child custody," she

She said that injustice continued not because of religion in the case
of Pakistan but because of social prejudices. Elaborating, she went on
to describe some of the changes that had resulted from the elections
and those that she had witnessed throughout her lifetime.

"Our election has exploded the myth built by social taboo that a
woman's place is in the house, that it is shameful or dishonourable or
socially unacceptable for a Muslim woman to work."

Several steps towards the improvement of women's status in Pakistan
were cited including the establishment in 1989 of the Women's Bank,
run by women and for women with the goal of setting up micro-
enterprises for income generation, lifting the ban on Pakistan women
participating in international sporting events, and the training of
100,000 women to reduce Pakistan's "population bomb" and the
initiation of public awareness campaigns against domestic violence and
its status in the country as a punishable crime. Steps to promote
primary education for girls was also described as one strategy to
rectify the imbalance between men and women.

On Tuesday (Sept. 5), the plenary session will be the venue for 7
minute speeches by high-ranking officials. Heads of all the United
Nations agencies and national delegates will also address the plenary
session. Benazir Bhutto and Hillary Clinton are also scheduled to
speak to the assembly during the week.

PM's address evokes enthusiastic response
Laura Stark

BEIJING, Sept. 5: The reaction to Prime Minister Benazir Bhutto's
speech on Monday at the opening of the United Nations World Conference
on Women has been generally positive, but there has been some
criticism too. Ms Bhutto received much applause from those attending
the session.

According to one Muslim delegate: "It was about time someone at such a
high level and someone who is respected by the West attempted to get
through to those who are confused by images in the media. It's our
responsibility to educate people that the original tenets of Islam and
fundamentalist forces are not synonymous."

Pakistani NGOs were surprised by the announcement in her speech that
the government had agreed to sign the "Convention on the Elimination
of Discrimination Against Women" (CEDAW). It was reported in the
Beijing Watch, the daily paper of the World Conference, that
Pakistan's reservations in ratifying the declaration centred on the
section that calls for international arbitration if there was a
dispute between two countries over the application of the convention.

Some Pakistani women's groups reported that Ms Bhutto had been under
heavy pressure for several years to ratify CEDAW and that she had been
slow to do so, but felt that apparently it had been hammered out at
the last moment to avoid international controversy during the

Mr Madhavrao Scindia, Union Minister for Human Resource Development
and leader of the Indian delegation, criticised the section of Benazir
Bhutto's speech concerning Jammu and Kashmir.

Ms Bhutto had said: "The use of rape as a weapon of war and an
instrument of ethnic cleansing is as depraved as it is reprehensible.
The unfolding of this saga in different parts of the world, including
Kashmir and Bosnia, has shaken the conscience of the entire
international community. The enormity of the tragedy dwarfs other
issues =97 urgent though they are. This conference must therefore
express complete solidarity with our sisters and daughters who are
victims of armed conflict, oppression, and brutality. Their
misfortunes must be our first priority."

Mr Scindia's address on Tuesday offered direct response to Benazir
Bhutto's remarks. He stated: "We are gathered here today to draw up
this charter for women's empowerment as we move into a new millennium.
It pains me to see that even such an occasion was used yesterday to
politicise issues, and make unfounded allegations. I wish to set the
record straight. An integral part of India, Jammu and Kashmir, has
been the target of terrorism, sponsored and sustained from across the
borders. These terrorists have used the most brutal methods for
subjugating innocent civilians, including rape, hostage-taking and
murder. My delegation urges this august gathering not just to address
this new and emerging form of violence against women, but also to
condemn and evolve measures to combat and eliminate terrorism."

The grimness of the day eased when about 500 women hailing from
Pakistan and India brought out a procession and resolved to work for
bringing the two peoples closer.

SSP patron freed
Bureau Report

ISLAMABAD, Sept. 5: Sipah-i-Sahaba Pakistan (SSP) Chief, Maulana Ziaur
Rehman Farooqi, was released on bail following talks between high-
ranking police officials in Islamabad police and leaders of the SSP.

Maulana Farooqi had been arrested and handed over to Federal
authorities when members of SSP attacked the BBC office in Islamabad.
However, Farooqi had denied his involvement in the ransacking of the
BBC office.

PAF to acquire 32 Mirages
Nasir Malick

ISLAMABAD, Sept. 6: Pakistan has finally decided to buy 32 Mirage
2000-5 high-tech fighter jets from France to meet its immediate air
defence requirements and also co-manufacture Super-7 fighter jets with
China, replacing all other Chinese aircraft's.

Air Marshal Mohammad Abbas Khattak said in an interview that "F-16s
are not available to us, the Swedes cannot sell us Grippen aircraft
due to the Pressler Amendment and the Russians have not yet agreed to
sell SU-27; therefore we have no other alternative but to buy French
jets which are thought to be very expensive".

Khattak said Pakistan had earmarked $3 billion for purchasing new 
planes but, in case of buying French planes, credit facilities would
have to be arranged.

He did not give a date when the Mirage deal would be finalised with
Paris. "We have evaluated all the planes available in the market and
given our report to the government. Now it is the government's
responsibility to buy and arrange credit facilities."

Asked, who had the final say, the Air Chief Marshal said: "Once the
professional assessment is done, we discuss the matter with the army
and the navy. "After arriving at a decision, we go to the government
and convince it. Luckily, no government has ever imposed anything on

Official killed, Envoy hurt as Pak embassy stormed in Kabul
Bureau Report

KABUL, Sept. 6: A Pakistani official and an Afghan were killed and the
Pakistani ambassador, Qazi Humayun, wounded, when Afghans attacked the
Pakistan embassy in Kabul on Wednesday. However, earlier reports from
diplomats in Kabul, quoting international aid organisations in Kabul,
had said more than 1,000 demonstrators attacked the embassy and that
"several dead bodies were seen lying in front of the building".

The Afghans were protesting against Pakistan government's alleged
support to Taliban militia. The Afghan government has formally accused
Pakistan of aiding the Taliban movement, which captured the key
western city of Herat on Tuesday in a major blow to President Rabbani.

Acting Defence Minister Younis Qanouni claimed Afghan security men had
tried to contain the crowd, but lost control "when a shot fired from
the embassy killed an Afghan student. That's when the crowd became
angry and broke into the compound and set it alight."

"We are unhappy with what happened at the Pakistan embassy," he said,=

"but we see no reason to apologise to Pakistan because the government
was not directly involved. This was a matter for the Afghan people,
who are angry about foreign involvement in south-west Afghanistan," he

Qanouni said his government realised that the embassy attack would
damage relations with Pakistan, but said the Pakistani people would
"understand that their government has made a mistake in becoming
involved in Afghan internal affairs."

According to the official Kabul Radio, Foreign Minister Najibullah
Lafraie had sent a message to the UN Secretary-General Boutros
Boutros-Ghali accusing Pakistan of "direct aggression".

Islamabad condemns attack on embassy
Bureau Report

ISLAMABAD, Sept. 6: The Foreign Office expressed serious concern over
the attack on the Pakistan Embassy in Kabul and condemned the Rabbani
government for its failure to provide adequate security to the
chancery and its staff despite advance warnings by Islamabad.

Foreign Secretary, Najmuddin Sheikh, told newsmen that he believed
that 25 members of the Pakistan mission in Kabul, including ambassador
Qazi Humayun, had been hospitalised although immediate reports from
Kabul said that no one was seriously injured.

The anti-Pakistan demonstrations in Kabul are reported to be against
alleged support extended to the Taliban forces by the Pakistan
intelligence services on seizing control of the strategic city of
Herat. Pakistan has strongly denied the allegation and reiterated that
Pakistan was in no way involved in the intra-Afghan war.

Asked whether Pakistan planned a total evacuation of the embassy
personnel by a special airlift, the foreign secretary said he would
wait for additional information from Kabul before answering such

He indicated that direct communication between the Foreign Office and
the Pakistan Embassy in Kabul had also been disrupted as a result of
the ransacking.


950901 ------------------------------------------------------------------- IFC may collaborate with NDLC to form joint venture firm ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Aug 31: The National Development Leasing Corporation (NDLC) plans to raise funds from the public by offering security papers worth a certain percentage of its total leasing assets. The International Finance Corporation (IFC) is likely to collaborate with the NDLC to form a joint venture company to undertake the project. "This is called securitisation...It would be quite a new thing here but elsewhere in the world it has already existed," said NDLC chief Mr Tayyeb Afzal. "The IFC is willing to collaborate with us but negotiations are at an initial stage," he told Dawn on Thursday adding that he would again discuss this issue with the IFC officials at the World Bank-International Monetary Fund (IMF) meeting in Washington. Mr Afzal said the NDLC in collaboration with IFC and some local financial institutions would set up a joint venture company which would purchase a certain percentage of the NDLC leasing assets and use it for launching investment securities through stock exchanges but did not identify the financial institutions. He said NDLC and IFC enjoyed an enviable working relationship in Pakistan adding that the IFC had also converted 10 percent of its loaning in NDLC into equity ownership but did not quantify the figure. He avoided disclosing the specifics of the project saying the same were being worked out but indicated that the proposed float of the NDLC security paper could be to the tune of Rs 500 million. NDLC has an assets base of Rs 4 billion. First Leasing Corporation (FLC) Chairman Khurshid Hadi said his company also planned to develop a similar instrument adding that they had been in consultation with the Islamic Development Bank (IDB) for the propose. He said the IDB was busy to make the concept clearer adding that certain legal issues had to be addressed before undertaking such a project. Mr Hadi, who also heads Leasing Association of Pakistan and Asian Leasing Association, was of the view that the securitisation of leasing assets would be practical only if the security papers are sold to institutional investors instead of the general public. He thought that the market at present is too underdeveloped to float such a sophisticated instrument for the public "but there is no reason why it should not be attractive to institutional investors." Sources in the leasing sector were optimistic that the NDLC being the oldest leasing company and IFC having a fairly large business exposure in Pakistan may be able to make their plan a success. They did not undermine the capability of the IDB to do the same in collaboration with a local partner but expressed their reservations over what they called slow pace working of the IDB that might delay implementation of a similar project. "Be it IFC or IDB or any other agency for that matter...the one collaborating with a Pakistani leasing company to launch any investment instrument would also have to see whether it is well within the ambit of the Islamic Sharia," said a chief executive of a leasing company who felt that this very aspect of the matter was critical in determining when exactly the Pakistani market would see such a product. Market analysts say it is the liquidity crunch that has started motivating the leasing companies to look for non-traditional sources of fund generation adding that securitisation of leasing assets was one such source which if implemented scientifically and run prudently may steer the leasing companies out of the cash crisis. DWS 950901 ------------------------------------------------------------------- Rs 1.2bn bunglings in Punjab ------------------------------------------------------------------- Bureau Report LAHORE, Aug 31: The Auditor General of Pakistan located financial irregularities amounting to Rs 1.290 billion in 11 departments of the Punjab government during 1992-93. The AGP's report was studied by the Public Accounts Committee (PAC) in the Punjab Assembly on Thursday. It stated that as many as 50,000 objections were found in the accounts of different Punjab departments but none of the departments ever bothered to reply. Addressing a Press conference, a PML member of the PAC, S A Hameed, said there are 50 departments in the Punjab but the government had allowed the Auditor General of Pakistan to audit revenue receipts of only 11 departments. This was strange in view of the fact that the Sindh government had been allowing audit of its all departments since 1991. Mr Hameed said the Punjab government had not submitted for audit details of a Rs 3 billion development grant from the federal government, Rs 1.60 billion of land revenue and Rs 609.07 million revenue receipts from other taxes. He said out of around 100 tehsils in the Punjab, only 11 had presented their revenue receipts for audit without mentioning Rs 320 million of abiana (water charges) which they never recovered. These tehsils did not also recover Rs 340 million as fine from those who had used water illegally. The PML MPA said the audit department reported that the revenue collection departments had never replied to the objections conveyed to them. They also never held meetings of the departmental accounts committees. Mr Hameed said the PAC had taken a serious view of the situation and asked the government to force all its departments to reply to all the objections of the audit department and help their respective accounts committees. DWS 950901 ------------------------------------------------------------------- Import duty on newsprint cut to 1 pc ------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 31: The government is ready to reduce the import duty on newsprint from 10 per cent to one per cent provided the newspaper organisations withdraw their strike call for Sept 4, a government handout said on Thursday. "The government is willing to bring down custom duty on newsprint from the present 10 per cent to one per cent, but an announcement to this effect could only be made provided a positive gesture is made by the newspaper industry to help create a conducive atmosphere," information minister Khalid Kharal said in a statement. The All Pakistan Newspapers Society had given the strike call for Sept 4 to force the government to withdraw 15 per cent sales tax and 10 per cent import duty on newsprint, the prices of which has increased from $400 per tonne to over $1,000 per tonne in the international market. "Reduction in import duty is a sign of (government's) flexibility and a welcome step," PNPO Secretary-General Mr Hameed Haroon told Dawn by telephone from Karachi. "Our demand is basically zero duty and this is the first step." Mr Haroon said the PNPO was waiting for the complete withdrawal of sales tax "as a prelude to reviving a positive dialogue" with the government. DWS 950902 ------------------------------------------------------------------- STOCK EXCHANGE ------------------------------------------------------------------- Muhammad Aslam AFTER initial weakness, stocks recovered across a broad front during the last week as investors made heavy buying at the lower levels on predictions that the market is in for a grand technical rebound. It was a judicious blend of both speculative and genuine buying after mid-week, as investors hastened to buy on their choice counters at the current lower levels. But the chief stimulating factor was resumption of peace talks between the officials and MQM teams. "But investors are still in two minds about the outcome of peace talks and until an agreement is signed the state of uncertainty will prevail", said an analyst. Owing to volatile performance of the base shares amid alternate bouts of buying and selling, the Karachi Stock Exchange index of 100-shares showed highly erratic fluctuations touching the lowest of the week at 1,744.32, before bouncing back to 1,772.26 points as compared to the previous week's 1,797.13. Technically, the market is in a highly oversold position and needed a correction. But it is not forthcoming owing to the law and order situation and investor fears of an uncertain outlook for the share business. But the resumption of peace talks provided the much-needed push to most of the bargain-hunters who made an extensive buying on selected counters apparently in a bid to realise quick gains in the current run-up. There were many big gainers, which rose just in a session at the fag- end of the week under the lead of Lever Brothers, which has been under pressure since its merger with the Brooke Bond and the formation of the new company under the name of Unilever Pakistan. But Engro Chemicals, which showed sharp gains earlier in the week on expectations of a higher interim was later traded down as a section of investors took profit at the higher levels. There is however a perception, and shared by many, that the market was now in for a grand technical rebound and objective conditions inform bears might not be in a position to stop it at least for the near term. There was no trace of the early week bearishness as investors virtually rushed in to make an extensive buying for the new account as all joined hands to boost the market in a big way. Floor brokers said the current state of uncertainty in regard to a durable peace might persist but one thing now appeared certain that a formidable sector of leading investors has decided to stay in the rings irrespective of external backgrounds. However, what has lent credence to an idea of a bull market was the strong presence of foreign buying though on selected counters, which in turn generated a good bit of sympathetic buying on some other sectors. Interim dividend news from Philips and final dividend from Orix Leasing, Burshane Pakistan and Al-Zamin Leasing Modaraba at 25 per cent 35 per cent, 50 per cent and 12.5 per cent were in line with market thinking. But a notable exception was passing over of dividend by Hub Power, although it did not work against the sustained rise in it share value. The market recovery was led by bank shares, which showed widespread gains on active short-covering, finishing with good rallies under the lead of Al-Faysal, MCB, Bank of Punjab, Crescent Bank and others. ICP mutual funds and leasing shares also rose modestly barring Orix Leasing, which recovered by Rs. 6. Insurance shares ruled mixed but ALICO, Century and Metro Insurance managed to put on good gains amid active trading. Some of the leading textile shares posted gains under the lead of Gadoon and Nishat mills, while all others were fractionally traded. After initial weakness, synthetic shares attracted good support at the lower levels and rose modestly, under the lead of Dewan Salman, Ibrahim Fibre, Dhan Fibre and Rupali Polyester. Cement and energy shares were actively traded and most of them recovered smartly amid brisk trading, major gainers among them being, Cherat, Dadabhoy, Dandot, and Maple Leaf Cement. Hub power whose directors have omitted the dividend for the year ended June 30, was among the big gainers followed by PSO and Sui Northern. Auto shares ruled mixed but leading among them rose under the lead of Allied Motors, Atlas Honda and Pak-Suzuki Motors and so did transport shares, big gainer among them being PTC shares. Chemical shares showed either way movement, but the leading among them rose under the lead of Engro Chemicals, Fauji Fertiliser, Abbott Ciba- Geigy but Parke-Davis but Sandoz fell and so did Lever Brother after the news of its merger with Brooke Bond which rose sharply. Lever also ended recovered at the fag end of the week. The newly listed Tri-Pak Films after a weak start managed to recoup losses and was actively traded and so did Diamond Industries. Trading volume soared to 57 million shares from the last week's 33 million shares as some of the current favourites were massively traded under the lead of Hub Power despite passing over of the dividend for the last year, Faysal Bank and PTC shares, which together accounted for one third of the total volume. They were followed by some of the newly listed shares, notably KASB Premier Fund, Tri-Pak Films, which made firm debut and assumed the role of active scrips just during the first week of trading. The latter appeared to be attracting more buyers at the current levels, which the market sources said, are attractive enough for any future investment in this share. Among the other actively traded shares, Lucky Cement, Maple Leaf Cement, Sui Southern, Fauji Fertiliser, LTV Modaraba PIAC, Dhan Fibre, Dewan Salman, Ibrahim Fibre and Generteck were leading. Bank shares were led by Faysal and Platinum Bank followed by Al- Faysal, Askari Bank, Bank of Punjab and some others. DWS 950902 ------------------------------------------------------------------- Ex-BCCI official rearrested ------------------------------------------------------------------- Correspondents Report LONDON, Sept 1: The Metropolitan police on Friday morning arrested Ziauddin Ali Akbar, the former head of the treasury division of the collapsed Bank of Credit and Commerce International, as soon as he was released from prison, having served his jail term. He had pleaded guilty to 16 charges of false accounting relating to 500 million pounds, and was sentenced to six years imprisonment at the Central Criminal Court, Old Bailey, in Sept 1993. His arrest followed an extradition order from the United States where the authorities want to put him on trial for his alleged role in the collapse of the BCCI. Akbar, 49, was described as the 'chief engineer' in the collapse of the BCCI when he was sentenced to six years in jail. Under British prison rules the total period since he was brought back by Scotland Yard from France in September 1991 to stand trial was also counted while considering remission. Akbar had escaped to France after the closure of the BCCI in July 1991 despite a Scotland Yard order restricting him to the UK. He had been convicted of drug money laundering and had served 18 months sentence when he was given conditional release. Akbar headed the BCCI's treasury division until 1986, when he became managing director of Capcom Financial Services Limited, a commodity futures trading company in London. It had linked to the BCCI. When Akbar was arrested by the French police in 1991 even then there was a request made by the US authorities for his extradition. They wanted him to be sent there first for trial. But because he had escaped from the jurisdiction of Scotland Yard the British authorities were able to secure his arrest first and put him on trial. He was the first of the four persons so far arrested by the Serious Fraud Office and convicted by British courts in connection with the BCCI investigations. DWS 950903 ------------------------------------------------------------------- Court orders release of $393m seized from BCCI ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Sept 2: Hundreds of thousands of victims of the BCCI, the Third World's only bank that once made it big in the West, will soon begin receiving at least some of their stuck-up deposits, following release of 393 million dollars by a US court on Friday. The judge ordered that more than 393 million dollars seized from the BCCI be handed over to a worldwide fund so that the money could be returned to victims and partly to the US government and New York state. The founder of BCCI, Agha Hasan Abedi, recently died in Pakistan after a long illness while one of its main architects, Swaleh Naqvi, is in a Pennsylvania prison, waiting for mercy as he has become a cooperating witness. For several years capitals had to work out ways to resolve the mess created by the BCCI collapse and those with their savings sunk in the scandal had been waiting with little hope of getting it back. US district Judge Joyce Hens Green issued the order on Monday but the Justice Department announced it late on Friday in what appears to be the first release of forfeited funds to the depositors and governments involved. "The funds are being released to the federal government and the victims under a 1991 plea agreement by BCCI," the Justice department said in a Press release. Under that agreement, 223 million dollars plus accrued interest, which was not specified, will go to the victims fund. An additional 10 million dollars goes to New York state, where the BCCI had a subsidiary bank, to pay for state fines. The balance is to remain available to the attorney-general, Janet Reno, for offsetting the losses suffered by the Federal Deposit Insurance Corp. DWS 950903 ------------------------------------------------------------------- Donors raise objections over SAP execution ------------------------------------------------------------------- Bureau Report PESHAWAR, Sept 2: Donors comprising the World Bank, Asian Development Bank, government of Netherlands and the British overseas development administration have expressed their dissatisfaction over the operational plan of the NWFP social action programme. In their view, the plan is being operated at a pace slower than planned and receiving major setbacks due to political interference at a large scale. Doubts have been expressed about the success of the programme. Lack of supervision lethargy of executing departments, failure in the implementation of various stages of the programme, nepotism, favouritism and red-tapism have been seen as main hurdles in the execution of the programme the benefits of which should have reached the people within the specified period. The programme review mission of the donor agencies and governments has expressed concern over failure in following the action laid down in the agreements. This has led to the call to convene a joint monitoring in the provincial planning, environment and development department as the donors refuse to trust the manner in which such monitoring is being done in the department concerned. The monitoring reports prepared after long exercises have been found both faulty and unreliable and, therefore, unacceptable to the donors representatives. They observed that most of the time is consumed in lengthy meetings with no work on the ground. In at last one instance, it was found that the provincial government failed to observe the deadline of August 31, for the beginning of implementation of PC-I prepared by the local government and rural development department which allocations have already been made. The mission of donor countries and financing institutions also pointed out lack of uniformity in operational policy of projects started last year. This has made the programme full of confusion with little benefits to be accrued to the people. The donors had also set August 31, as the last date for the launching of an awareness campaign about the SAP projects, which has not been done. They had also suggested to hold a seminar for members of political parties, MPAs and specialists which is scheduled for October. The mission has also made similar observations about the execution of primary education programme. It has raised serious objections against frequent transfer of teachers, before they completed their tenure, on political grounds. This, it said, disturbed the programme. A number of objections have been raised against the way primary health programme and the water supply projects have been handled in the province and corrective measures have been suggested by the mission. DWS 950904 ------------------------------------------------------------------- PM orders probe into misuse of SAP funds ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Sept 3 : All the four provinces have mixed up Social Action Programme (SAP) funds with their Annual Development Programmes (ADPs) and People's Programme and Prime Minister Benazir Bhutto has directed Auditor-General of Pakistan to conduct an inquiry into the issue and report to her immediately. Informed sources told Dawn here on Sunday that the AG has been asked to determine as to why the SAP funds have been mixed up by the provinces and that why they were not bifurcated as was agreed with the World Bank and the Asian Development Bank (ADB). The Planning and Development Divisions have also been asked to probe why the SAP estimates were not used in true spirit. "According to clear cut federal government's instructions, and also a one of the major conditionalities of the donor agencies, SAP funds cannot be intermingled with the provincial ADPs and there was no question of their re-appropriation," said an official of the Planning Commission. The World Bank, the Asian Development Bank and few other donors had provided over $500 million to Pakistan to undertake SAP throughout Pakistan. Islamabad is again expecting to receive another $500 million for initiating the second phase of the SAP(2). The government plans to spend $8 billion on SAP during the next five years. It expected to receive about $2 billion from donor agencies and other bilateral resources. The sources said the donor agencies knew about it and would soon take up the issue with the federal authorities to ensure that SAP funds were not mixed up with provincial ADPs or Peoples Programme. It also pointed out that the monitoring system of the SAP was very weak and needs to be carefully examined for restructuring in order to improve the service delivery at the facility level. The SAP has been launched by the government with the support of the donors with the aim of enlarging and improving primary education, improving basic health facilities, slowing high population growth rate (3.2 per cent of the GDP) and providing clean water and adequate sanitation services. DWS 950905 ------------------------------------------------------------------- Singapore firm gets New City contract ------------------------------------------------------------------- Bureau Report ISLAMABAD, Sept. 4: The Multi-national Group (MG), a Singapore-based company, has been given the contract for developing Islamabad New City, a joint venture of National Housing Authority and Capital Development Authority likely to be launched next month, CDA chairman Zafar Iqbal said here on Sunday. The CDA had invited applications in 1993 and about 53 concerns had initially submitted their letters of expression. Mr Iqbal said after short-listing and intense negotiations with different parties, the MG was selected for the development of the city on more than 80,000 kanals in Zone 5 of Islamabad. Giving the salient features of the project, Mr Iqbal said the master plan of the project divides the total area into four sectors of 20,000 kanals each. Each sector will have 24,000 units over an area of 10,000 kanals, leaving the rest for roads, streets, mass transit system, golf course, playgrounds, parks, markets, green belts and public utility buildings. The CDA chief said the new city would cater to all income groups, giving special attention to the lower and middle classes. The housing authority would allocate plots in one of the sectors to different private and government departments to solve the housing problem of employees, he added. He said the project would be completed in three years and, after six years, the whole city would be reverted to CDA for municipal regulation. DWS 950904 ------------------------------------------------------------------- Minister's disclosure shocks traders ------------------------------------------------------------------- Shaukat Ali LAHORE, Sept. 3: Minister of State for Finance Makhdoom Shahabuddin stunned a meeting of small traders on Sunday by saying that the Income Tax Officers (ITOs) who had last month visited markets and caused panic among businessmen about filing tax returns with certain conditions this year, did it to undermine government policy of removing their role in tax collection. Although the minister confirmed that the Government wanted businessmen to supply information pertaining to their mobile telephone, children's education and travel abroad along side their income tax returns, he held IT officials responsible for sabotaging efforts to increase revenue collection by reducing direct contact between them and the tax-payers. But the matter had been in the Press for quiet some days that ITOs were visiting markets to apprise traders of the new conditions. According to the minister, "lack of contact between the Government and the business community on the three-year Self Assessment Scheme for income tax from this year is the root cause of present misunderstandings", arguing that small traders were not to be effected by the fresh conditions on the returns as long as they continued to show 20% increase in their income. He said at present the government did not want to take action against the tax department personnel who were out to sabotage government tax policy, but held out an assurance to the traders that strict action would be taken against the ITO's. An Income Tax official, Iqbal Farid, explained that as a matter of fact there was nothing like form A of the income tax, which was largely circulated in the Lahore markets by certain politically motivated business organisations in connivance with some tax department officials to create a scene which culminated in the form of a two-days business strike. DWS 950905 ------------------------------------------------------------------- FACC seeks details from PIA on lawsuits in NY ------------------------------------------------------------------- Staff Report KARACHI, Sept. 4: The Federal Anti Corruption Committee (FACC) has sought information and explanation from the Pakistan International Airlines (PIA) about the law suits it was facing in New York courts which has resulted in payment of over $6,97,000 to the lawyers in last five years. An interesting observation made by the FACC in respect of PIA's payment of lawyers' fees is that bulk of the amount which is more than 62% =97 $437,622 =97 has been paid to a lawyer of Pakistani origin in New= York while two other major American law firms were paid about $232,000. These observations are incorporated in a report of a team dispatched by the FACC to New York. The team observed that the PIA was sustaining financial losses due to the agents default. The situation has further aggravated because of filing of law suits. It was found that the PIA's spending on account of lawyers' fees has increased from $42,928 in 1990 to $319,706 in 1994. The FACC fears that PIA's legal cost in 1995 will be more than 1994. Another interesting observation it made was that the cost incurred in engaging American lawyers does not exceed $65,000 a year but in case of the Pakistani origin lawyer it has gone from $6,981 in 1990 to $214,643 in 1994 which the report points out "is being patronised by PIA New York, may be due to his excellent performance record". The FACC has therefore asked the PIA to inform the number of cases given to the Pakistani origin lawyer in New York in 1992, 1993, 1994 and 1995 and how many of these have been won by him to PIA's advantage. DWS 950906 ------------------------------------------------------------------- FACC threatens to abandon task ------------------------------------------------------------------- Shaukat Ali LAHORE, Sept. 5: The federal government has empowered once again its Anti-Corruption Committee to get details of bank accounts of individuals and companies which are under charges of misappropriating bank loans. According to sources, the Committee had threatened to abandon its task of probing cases against bank loan defaulters if it was not provided with details of their accounts and other assets. The Committee, constituted by the government last year, had started investigating the stuck up loans of about Rs 80 bn. It had already pinpointed half a dozen cases that the Pakistan Banking Council (PBC), with the consent of the Ministry of Finance, refused to provide bank account details for. This was done under the pretext that every bank client had a legal right secrecy of his business. It had told the government that if the committee continued to investigate into bank accounts people would lose trust in banking. Upholding PBC's plea, the Committee was barred from asking about random particulars of certain bank accounts. But then this was no solution. The issue of stuck-up loans, played up by the government in a bid to politicise it, took a U-turn after the PBC action. According to sources, the matter was brought to the notice of the Prime Minister who advised the Finance and Law ministries to find some way out for the Committee to continue with its job. Apparently it was settled between the Committee and the PBC that details of only those bank accounts would be made available about which the Committee showed ample proof of fraud to bank authorities. The Finance Ministry, is also likely to inform all banks through a circular about the new jurisdiction of the Committee. Insiders confided that there were over one hundred cases, identified by the Committee, in which loans running into billions of rupees, had been obtained from banks without valid collateral. DWS 950906 ------------------------------------------------------------------- 2 electronic giants may drop plan to invest in Pakistan ------------------------------------------------------------------- Aamir Shafaat Khan KARACHI, Sept. 5: The government's strategy to combat growing smuggling of all the electronic items by slashing down drastically the customs duty on imports has not been received in good humour by foreign investors. Market reports suggests that two Japanese electronic giants, the Matsushita Electric Industrial Company and Sony Corporation, are seriously reconsidering their plans to set up manufacturing facilities in Pakistan. Sony Corporation has already set up an office at Lahore to monitor the potential of the local market with a view to establishing manufacturing plant but are now considering to give it up after the government's decision to slash down the customs duty and fixing 10% on import of various electronic items. Before this, the customs duty on import of various electronic goods ranged between 35% to 70% and was the main cause of smuggling of these items. Japanese investors, according to market sources, dropped broad hints of withdrawing their plans of investment in Pakistan at a meeting in Islamabad between the Secretary Board of Investment (BOI), Syed Mohibullah Shah and Director General, Japan External Trade Organisation (JETRO), Mr Hiroto Ishibashi and officials of the four provincial governments. The DG JETRO is also reported to have informed the BOI Secretary that the flow of investment from Japan in various other sectors had been slow due to inconsistencies, ad-hocism and improper implementation of government's policies. The DG JETRO, who was acting as a representative of other Japanese organisations, told Mohibullah that two companies, Marubeni and Mitsubishi, had signed agreements with the Pakistani government recently to invest in cement and textile sectors but they too are concerned by the changes in implementation policies of taxes. "If Pakistan stops changes in tariff structure after every year the country will be flooded with foreign investment," Adding that changes in taxation structure had resulted in shifting o=A3 Japanese investment to India because of their open policies. Meanwhile, the bilateral trade between the two countries during the first six months of 1995 has shown a favourable balance of $251 million for Japan as against only $67 million surplus shown in January to June 1994 period showing a rise of over 300 percent. During January to June 1995, Pakistan's exports to Japan were worth $324 million while imports from Japan to Pakistan were $575 million. In January to June 1994 Pakistan's import from Japan amounted $372.6 million exports were worth $305 million. DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* DAWN FACTS Another first from the DAWN Group of Newspapers --- the people who brought you the first on-line newspaper from Pakistan --- comes DAWN Facts, a new and powerful Fax-on-Demand service, the first service of its kind in Pakistan, giving you access to a range of information and services. Covering all spheres of life, the service arms you with facts to guide you through the maze of life, corporate and private, in Pakistan. With information on the foreign exchange rates, stock market movements, the weather and a complete entertainment guide, DAWN Facts is your one- stop source of information. DAWN Facts is available 24 hours a day, 7 days a week! DAWN Facts +92(21) 111-777-111 DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. 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950901 ------------------------------------------------------------------- The bare bones ------------------------------------------------------------------- Ardeshir Cowasjee I RECENTLY had the pleasure of once again meeting a sane senior Pakistani international civil servant, widely acclaimed in the lending and borrowing world for his acumen and his understanding of high finance. I found him very distressed. What can one do, what can one individual do? he asked. You can speak, I told him, and I can write. Many read, some may comprehend. Should the people not be informed? Is it not their right? You stay away, but your soul is here. You despair, you feel for your country. He agreed to speak, and authorised me to quote him verbatim. What do you see, hear, feel, sense, smell? I asked. Each time I am in Islamabad I smell decay. What do you see? I see, feel and sense. "A system that consists of the legislative, the executive, the judiciary =97 a closed system where reform and change cannot come from within." "A parliament that is an instrument of the feudal classes because it does not represent the changing structure of Pakistan's population which is substantially urban." "It takes crores of rupees to contest an election. All except the mooned or their proxies are disenfranchised." "The civil service which was a check on the excesses of the politicians was emasculated by Bhutto, and now, for all practical purposes, there is no civil service in Pakistan." "There is no accountability. Pakistan today is one of the most corrupt countries in the world. Examples of corruption are printed in the Press almost every day of the week yet nothing happens, because of this closed system, where all branches of the government are a part of the same game. In such a case, change has to be brought in from the outside and it is very likely to be violent." "The entire system of government has become perverse. If you are a common man in Pakistan you have the right to ask what you get from the taxes you pay:=97 Do you get security for self and family? No. Do you get education for your children? No Does the government provide health facilities? No Is there a working infrastructure in the cities? Go to the less privileged areas of Karachi and find the answer for yourself." "In sum, the government, of course, provides resources for the armed forces, it services the national debt which is galloping at an alarming pace. The rest is merely taking from the many and distributing the takings to the privileged few, e.g. loans from Pakistan's public financial institutions which are never repaid." "Licences and permits are distributed for setting up sugar mills, power plants, etc, etc, where immediate profit is gained from over- invoicing machinery or fixing inconceivably high power tariffs." "Economic management is in the pits. Efforts made towards education rank lower than in many African countries. Literacy is declining, particularly amongst women. Women in Pakistan have the right to ask their woman prime minister, who sells herself to the world as one of the only three women PMs in the Muslim world, exactly what she has done for the women of her country." "The fiscal situation is out of control. Taxes are paid by a very small number of people, maybe 150,000, and are extorted from those who pay. The rich, including the PM and her husband and the leader of the opposition pay little. The contribution they make to the state, with its practically non-existent social services, bears no relationship to their style of living. The fiscal deficit is ballooning, partly because of the large number of jialas who have been inducted into various institutions of the government to do little or nothing." "Pakistan's options are limited. If it is to avoid inflation of the Latin American kind it must cut social services because the options of cutting expenditures on defence or debt servicing are not available to it. The people will not accept further increases in taxes or in prices." "Pakistan only avoids the sort of hyper-inflation that Latin America had because the illiterate Pakistani masses have not yet discovered the dollar. The day they start rushing to convert their rupees into dollars to protect themselves against inflation the game will be over." "The government short-term liability is over $5 billion. Pakistan's reserves are less than $2 billion and going down. If the Pakistanis and foreigners who hold $5 billion liability start cashing in, default will be impossible to avoid." "I do not trust any of Pakistan's statistics, including those on growth or inflation. My view is that inflation is significantly higher than indicated by the government." "In the entire Pakistan government there is not a single economist of any calibre who can even mobilise the people to think about the weightier issues that our country faces." What can be done? "This situation has no answer. Benazir is the problem, only because she is the manifestation of the system as is Nawaz Sharif. If the country chooses to back either of them, then the country must sink further." "The answer has to be found outside the system and there is no doubt that the solution will have to involve people who are not a part of the oligarchy that rules Pakistan. The country has to go through many years of fundamental reforms which must include a clear-cut strategic view of our defence needs in relation to our economic realities." "The lesson of the Soviet Union must not be lost. The United States ultimately destroyed it by making armaments too expensive. Pakistan, vis-a-vis India, is in a similar situation." "The state is too large and unproductive. There has to be a sustained and large cut-back in the state's expenses so as to release resources for social services and development activities." "There has to be massive deregulation so that the state does not hinder private activities and is not an engine of rent collection as it now is." The state's capacity for the provision of social services and public infrastructure has to be strengthened. Firm targets for the commitment of financial and human resources have to be established =97 education, mass literacy, health, etc, etc." "There has to be a reconstruction of the executive branch with professional career civil services based purely on merit and competition." "Pakistan is a multi-ethnic society. It cannot survive on the basis of a centralised government. There has to be massive decentralisation, as there is no way a highly centralised, inefficient and corrupt government can deliver the goods on social services and infrastructure. The only way to bring the government closer to the people is through devolution to the provinces,by strengthening them, and by reviving and strengthening local bodies." "This is not a small agenda, and it will probably never be achieved." His conclusion: So where is Pakistan going? Because of the sins of this government and its predecessors society must continue to mortgage its future in terms of higher debt, and compromise its sovereignty to keep the money flowing from international organisations to keep our trade channels open. Any improvement in the standard of living, particularly urban, is not within sight. Karachi may merely be a foretaste of what we may see in the other cities of Pakistan. There is a risk that Pakistan will join the many countries in Africa and soon become one of the failed states. This risk draws closer every day. The real fear is that if things slide as they are doing, sometime early in the next century there may not be a State of Pakistan. My conclusion: I share his foreboding. I share his fear. Let any who may disagree, barring of course the government 'parrots', write in. DWS 950902 ------------------------------------------------------------------- The sleaze sweepstakes ------------------------------------------------------------------- Mazdak THE news that Pakistan is the third most corrupt country in the world must have sent shock waves among those who have worked so hard to earn us this enviable reputation. They must be wondering what it takes to earn the top spot: after all their endless labour, it must be galling for them to see Indonesia occupy first position, with China coming next in the sleaze sweepstakes. But seeing a pair of Muslim countries taking two out of the three top slots does make this member of the Ummah feel proud. The German organisation, Transparency International, has done us a huge favour by ranking countries according to their level of corruption. For those who feel strongly =97 and there is no shortage of such people =97 that Western countries are a cesspool of vice and degeneracy, it might come as a bit of a surprise that countries like New Zealand and Denmark have been ranked as the most honest. Actually, this is not the only honour to come Pakistan's way. In GDP, population, health, education and quality of life indicators, we are invariably placed near the bottom of the pack. Even countries like Nigeria and Ghana consistently perform better than us. The latter has the same per capita income as we do ($430), and yet has a literacy rate of 60%, almost double ours. Despite all these negative factors, our leaders never tire of telling us with a straight face that we are about to become an Asian tiger any day now. But perhaps the most disheartening and depressing aspect of our underdevelopment is the sheer scale of our corruption. Any and every deal is automatically tainted by whispers of kickbacks. Even more shocking than the rumours themselves is the fact that they are so easily and quickly believed. The more outlandish the tale of wrongdoing in high places, the more swiftly it is swallowed. This says more for the voracious appetite of our rulers than for the gullibility of our people. Many of today's fortunes are derived from heroin and sundry forms of corruption ranging from outright bribery to gun- running. Again, what is more scandalous than the sleaze factor itself is the brazen fashion in which this ill-gotten wealth is displayed. Flashy cars and ugly but opulent houses are flaunted, with no effort made to conceal the corruption that made them possible. These crooks are safe in the knowledge that neither the state nor society will punish or censure them. Indeed, even after they have been convicted =97 usually abroad =97 they return to their round of parties without a question being asked. Some shady characters manage to get released on bail, and claim to be subjected to political victimisation. Even Murtaza Bhutto, a seemingly idealistic young man, has a convicted heroin smuggler, who has done time in England, in tow, and defends him when questioned about his taste in political associates. An MNA from Sheikhupura who belongs to the ruling party was recently arrested for drug trafficking. The question is why he was given a ticket to start with when his reputation stank to high heaven. Stories of the wheeling-dealing that goes on in our capital are legion. You've probably heard them all. But a really bizarre one came my way a few months ago. An old friend told me in all seriousness at a party in Lahore that the owner of a lovely house in Islamabad received a visit from an estate agent who made an offer on behalf of a very powerful person. Not wishing to sell but not desiring to offend the would-be buyer, he named the absurd price of 20 million, and was astounded to learn that it had been accepted. A couple of weeks after he had received the sum and vacated the house, his school-going son was kidnapped; the ransom he had to pay was =97 you guessed it! =97 20 million. When I told my friend that there were far easier and less risky ways for the high and mighty to make 20 million, she was thoroughly miffed at my scepticism, muttering that she had heard the story from "an impeccable source." The point is not that such rumours do the rounds, but that they are so easily believed by intelligent people. Obviously, when so many scams are going down every day of the week, slipping in a few concocted tales is not difficult. No doubt, much of this disinformation emanates from the opposition, but it is those in power who have helped create the environment where it is so easily and unquestioningly believed. Another depressing aspect of this endless sleaze is the crudity of it all. Now, politicians and bureaucrats bluntly name their price. There is no longer the perceived need to have a middleman to spare both parties embarrassment. There was a time when even corrupt officials had a certain amount of style. For instance, there was the story about a mysterious gentleman who, every evening, treated customers at the bar (now given the awful name of permit room) in a five-star Karachi hotel to a round of drinks. Even in those more convivial, pre- prohibition days, this was an expensive display of generosity, and people wondered who he was and how he had made his fortune. It turned out that he was a minor functionary of the Meteorological Department; every time a ship with contraband was heading for our shores, our hero would put out a storm warning so that Coast Guard ships would not venture out of port. While it is impossible to work out the extent of corruption and the loss it causes the economy, its impact on the fabric of society is evident. By making money the sole measure of success, we have managed to debase our values within a generation. The whole concept of sharafat (or decency) has been thrown out of the window. Now, unless you are driving a latest model limousine and send your children to the American School, you are clearly nobody. A friend who has returned >from abroad and was trying to get his children admitted in a private school in Islamabad told me about a little girl who wanted to use the phone in the school office. When she was told it was out of order, she turned to a friend and borrowed her mobile phone. Despite their endless pious homilies about honesty, our leaders are the worst offenders because they set the example in terms of displaying their wealth. As things are, I am sure we have an excellent chance of winning the gold medal in the sleaze sweepstakes next year. DWS 950903 ------------------------------------------------------------------- Supply side of corruption ------------------------------------------------------------------- Omar Kureishi THERE has been a good deal of snickering and some gloating, amounting to self-satisfaction, over a news item that a Berlin- based research organisation called Transparency International has bestowed on Pakistan the title of being among the three most corrupt countries in the world. The other two are Indonesia and China. In fact, the first eight on the hit-list are Asian and South American countries, itself a damning indictment of the Third World and something that makes one cock up one's ears suspiciously. We have accepted this in the spirit of I-told-you-so, not so much a case of one's worst fears being confirmed but our best hopes affirmed. For when it comes to Paki-bashing we are clearly a people who are their own worst enemies and their own fiercest critics. We have not chosen to contest the findings of this organisation nor to question its antecedents and credentials. Is it a reputable organisation and who funds it? What was the input, its sources of information, whether it has concrete proof to back up its findings or is it relying on perception and hearsay? It is an extremely damaging finding and we need to know more. That there is corruption in Pakistan is not being disputed. That the corruption is widespread and reaches out to every aspect of our national life is not disputed either. Whether there should be a listing of the most corrupt versus the most honourable countries depends entirely on how corruption is defined. There is in an act of corruption between two parties. The corrupt and the corrupter. Is Transparency International concerned only with those who take bribes or also with those who give bribes? When an aircraft manufacturing company gives kick-backs and there have been innumerable scandals world-wide, are both parties guilty? Is it more dishonourable to receive a kick-back than it is to give it? When pharmaceutical companies dump drugs and medicines on Third World countries that are illegal in their own, is that an act of moral uprightness or does it not constitute corruption? The first requirement is for us to ask Transparency International to define terms. There is about corruption the most perverse kind of double standards. In 1986 I wrote a column about these double standards. What I wrote then not only still applies but does so in spades. This is what I wrote: "We all know that the West has been very concerned about the heroin trade. They have sternly lectured, sometimes threatened countries from where this trade originates. Pakistan too has felt the lash of this disapproval and we have had to hang our heads in shame when we were sternly rebuked by a US official who sneeringly referred to the 'heroinsation of Pakistan.' Yet when one country chooses to do= something positive to crack down, it is called 'barbaric' by a Prime Minister of another country. Malaysia has a mandatory death penalty for drug trafficking. When it hanged two Australians for being in possession of 179 grams of heroin, there was an outcry in certain Western quarters. Prime Minister Hawke and Prime Minister Margaret Thatcher were among those who expressed their disapproval. Prior to the hanging of the two Australians, thirty six people had been sent to the gallows and no one had bothered to express any shock or disappointment. But this time it was different. Because these two Australians were the first non-Asians to be executed under the law. Does this mean that there should be one law for Asian drug trafficers and another law, a more lenient one for the non- Asians?" Let me stay with drugs. The pressure has been entirely on the supply- side. No comparable pressure has been applied on the demand side. American and European cities are awash with drugs, heroin and cocaine and with derivatives such as crack. How do they get through? Even if one admits that the distribution network of drug-traffickers is highly efficient, is it unreasonable to suspect that there must be some complicity, some co-operation, some looking away, turning a blind eye >from the agencies involved, those stalwarts of the law whose job it is to prevent the drugs from entering the countries and reaching the streets. Unless they are thoroughly incompetent can one suggest that a certain level of corruption is involved? And since these drugs are available reasonably freely and even at the gates of high schools, one can only imagine the scale of corruption. Organised crime is the largest single industry in the United States and it cannot be much smaller in European countries, including Germany where Transparency International is based. Can organised crime as an industry survive, much less grow and prosper without some high level connections? I will not mention Italy for that would be over-stating the case and one of its prime ministers is on the lam. And yet, according to Transparency International, Pakistan is more corrupt than Italy! It is the West, the Developed World, that sells arms to the Third World. No one in his right mind will believe that military contracts are drawn up and negotiated by saints. The arms manufacturers may be estimable family men but I wouldn't put financial propriety as being one of their strong suits. It is common knowledge that commissions are involved and these commissions and kick-backs are not given by the suppliers out of a sense of Christian charity. There is a quid pro quo involved. If the taking of commission amounts to corruption, what does the giving of commission amount to? I won't go into such mega-scandals as Iran- Contra and Iraqgate. They may have been about international politics but they were also about corruption and they involved the highest. I feel that Transparency International has concentrated on the demand side of corruption. Can we look forward to another study that concentrates on the supply side of corruption? It takes two to tango but even in a dance one partner leads. Who is doing the leading? DWS 950904 ------------------------------------------------------------------- An idea touching the depths of obscenity ------------------------------------------------------------------- Ayaz Amir IS THIS country going mad or are its rulers, never ones to have their feet on the ground, living in a world of total make- believe? The demons of our own follies are knocking at the gates of the Republic. In time with the incompetence and greed of the governing class can be heard the sounds of the gradual chaos rising to meet the country's laws and institution. The fibres of hope as a result are shrivelling even in the stoutest hearts. But to this panoramic scene of decline and disintegration what is the response of the high priests of the Republic? Nothing more daring than that in the fevered recesses of their mind they conjure up a scheme to build, much as Kubla Khan built his palace at Xanadu, a golden, 'high- tech' city on the southern frontiers of that monument to our collective genius, Islamabad. The audacity of this plot (for plot it is against the helpless people of this country) defies belief. Since my own powers of description fail me, let me bank on Reuters news agency to give you an idea of this brave venture: "Pakistan plans to build a new $12 billion high- tech town near Islamabad that developers say will provide a 21st century contrast to the rampant decay evident in most Pakistani cities. "Mansoor Ahmed, the project's managing director, painted a vivid picture of the city equipped with cable television, elevated railways, fibre-optic communication systems, security and garbage recycling. "A whole new city is being built which will bring a 21st century living concept to Pakistan... The project is a joint venture of the National Housing Authority and a consortium of 25 local and foreign firms led by a Singapore-based company. "Ahmed said the town would have its own security agency to deter crime. Closed circuit cameras will monitor the roads and residents will have a 24-hour hot-line to emergency services." Now what do you say to this Kubla Khan scheme? Let us not talk of the bankruptcy of the political and governing class because this hackneyed subject no longer brings tears to anyone's eyes. Still, where is the foolish heart who will deny that the country is slowly sinking under the weight of the disorder riding on its back? Law and order are breaking down. Justice has become an elusive commodity. The administrative system is clogged with corruption. The guardians of the law are the worst breakers of the law. The education system is not only in a shambles but on the verge of collapse. Health care is not available to the people except at a price. Nor in this litany of despair is Ms Bhutto's contribution to inflation to be discounted. Does she or her husband of the Argentinean ponies have any idea how the magic of the market is making a mockery of the pockets and the dignity, or what remains of it, of the common man? But what is the gauntlet that the masters (and mistresses) of this country's destiny throw in the face of this gathering turbulence? They decide to build a cocooned city next to Islamabad. Closed circuit television, fibre optic communications, hot-line to emergency services and a separate security system to keep the beggars and wastrels of the Republic out of this hothouse dreamt up by minds whose contempt for the rest of their countrymen is exceeded only by their greed. Perhaps contempt is the right coinage of commerce in Pakistan. But to use it so openly and with so much audacity. That requires a special kind of nerve which perhaps comes from riding Argentinean ponies and keeping fighting cocks in the ample backyard of the Prime Minister's gilded residence. But at least this scheme, so brazen in its conception, gives us an insight into our golden future. As the country slips deeper into the corruption and chaos which seem the most potent symbols of its destiny, the privilegentsia, if the going ever gets rough, will know where to retreat and where to make their last stand. As the country seethes with unrest (but not with impatience because our people have a patience of five thousand years to fall back upon), the privilegentsia will draw up the wagons around this fabled high-tech city and lock the gates on the frustrated masses whose numbers by then, given the nation's gift for procreation, will have increased manifold. In other countries in our time which have been overwhelmed by the forces of chaos =97 countries such as Afghanistan, Somalia, former Yugoslavia and others on the West African coast =97 the pampered, after packing their belongings, have had nowhere to flee but abroad. In the Islamic Republic they will be put to no such inconvenience. They will have their own city whose high-tech facilities will keep the barbarian hordes at bay. In this city then this land's finest will find a safe haven. Here with solemn mien the prophets of sustainable development and the empowerment of women will be able to display their tempting wares. The Environmental Council (the name of whose chairman I dare not take) will play host to the rest of the world and hold forth mightily and eloquently on the amazing successes of the green movement. There will be riding schools too at which only Argentinian ponies will be kept and in the centre of the town there will be raised a monument to commission-taking which, as is common knowledge, is the foremost activity of the Islamic Republic today. About the high municipal officers of the new city I have a few suggestions which I am sure will not go unappreciated. As head of security services who better than our old friend Admiral Amer Lodhi who might even be asked to maintain a mini-navy, complete with midget submarines, on the Rawal and Simly Lakes. Head of internal security Reman Malik of the FIA. Supreme judge of the anti-corruption tribunal, Mr Ahmed Sadiq. Banking and investment Supremo, the poet (as so we must consider him after the Prime Minister's fulsome praise for his sensitivity), Shahid Hasan Khan. As for the city's godmother who more eminently qualified for this distinction than the Lady Nahid whose meteoric career over the span of the last three or four years is glowing proof of the fact that in this land of priceless opportunity a very little indeed can go very far. One important thing, however, has me baffled. What will be GHQ's relationship with this new Troy and where will its defence figure in the list of GHQ's priorities? For instance, if the frustrated masses in the teeming spaces of the Republic were ever to exhaust the patience and the fatalism which are the foremost legacies of their tempestuous history, on what outside sources of assistance will the city be able to call? Or will the city fathers be guided by the thought, as is all too likely, that come what may the collective intelligence of the Islamic Republic can be insulted with impunity? Who can knock sense into the leading lights of our ruling class? Certainly no one who makes a tearful appeal to their civic conscience or their sense of national duty. The time for such pious exhortations has passed because the highest and the finest abilities of this country are being channelled today into the one noble pursuit of commission-taking. Goering with his pistol, as I have had occasion to mention in this space before, would have made a difference. Stalin, fearsome Stalin, yes, his were the methods to deal with problems rooted in the past and in history. The wholesale purge of entire classes. I confess that when my despair is at its most intense, I am carried away by such fantasies and by the notion, expressed in that famous Stalin dictum, that in order to make an omelette you have to break a few eggs. DWS 950906 ------------------------------------------------------------------- To what purpose? ------------------------------------------------------------------- Editorial Column WHAT did the MQM achieve by its latest strike call in Karachi? The response to it might have been greater than to the last shut-down call given by it a few days ago but what, apart from showing the organisation's clout, does this exercise or those preceding it prove? A few more people killed, a few more vehicles set on fire, another set-back to business add the livelihood of common citizens; this is what these repeated strike calls entail. Meanwhile, the dialogue of the deaf between the two sides, the government and the MQM, continues, with General Naseerullah Babar's stentorian declarations about breaking the back of the violence which has plagued the city being matched by the overblown statements of Mr Altaf Hussain from London about the persecution of the Mohajir community. Seen against the reality of this situation, the formal talks between the two sides, now on and now off, seem merely a side-show with little sincerity or seriousness in them. We are conscious of the fact that while commenting on the Karachi situation there is nothing new to be said. The pleas we have made, the points of priority, approach and spirit that we might have stressed >from time to time in the context a negotiated settlement of the Karachi crisis, have the same tired ring about them. Urging an end to violence, asking the government to eschew the use of unnecessary force, reminding the MQM that if it talks of its rights and grievances it must also spare a thought for its responsibilities and emphasising, above all, the need for a political modus vivendi between the government and the MQM are the pieties and exhortations with which these columns, ever since a sad fate overtook Pakistan's principal city, have been full. But for all the good that these pleadings might have done, they might never have been uttered at all, for if Karachi has demonstrated anything in the last few years, it is its singular imperviousness to the effect of kindly thoughts. Still, when Karachi continues to bleed and burn (this metaphor not being that great an exaggeration), what choice do we have except to return, weary though this exercise may seem at times, to the echoes of the obvious and the commonplace? The most obvious and the most repeated conclusion regarding Karachi, of course, is that its problems cannot be solved by recourse to arms. This applies to the government which, if General Babar's utterances be any guide to its thoughts, seems to be relying inordinately on military methods to root out the sources of violence and terror without- paying as much heed as it should to the undeniable political roots and dimensions of this crisis. It also applies to the MQM which, whether by design or misjudgement, has directed the enthusiasm and the hurt of its many legions of followers into violent methods of protest and assertion. In Karachi thus what the nation is faced with are two opposing sets of obstinacies with little hope of any meeting ground between them if the present rigidities do not give way to the saner counsels of restraint, flexibility and moderation. At the risk of seeming to trade in hackneyed wares, may we, therefore, against the backdrop of this latest strike, once again urge both the sides to cast aside their animus and prejudices which are now more deep-rooted than ever, so that the dictates of common sense, if nothing loftier, are allowed a chance to salvage something from the charade of the ongoing talks? DWS 950906 ------------------------------------------------------------------- An inexcusable failure ------------------------------------------------------------------- Editorial Column SPEAKING to the Federation of General Traders in Lahore on Sunday, the Minister of State for Finance, Makhdoom Shahabuddin, disclosed that income tax officers caused panic in the market by circulating an unauthorised income tax form with the intention of provoking a hostile reaction from the business community and thus sabotaging the self- assessment scheme. Incredible though it may sound, the minister's disclosure has a familiar ring about it, knowing the extent of scheming and manoeuvring that our bureaucracy is capable of resorting to when it comes to protecting its accustomed, often corrupt, practices. The circulation of the unauthorised form, which purported to seek too many details of personal expenditure, provoked the small traders to go on a two-day strike last month. The mischief was intended to embarrass the government whose new self assessment scheme is said to have irked the tax officials. The scheme, reported to have been designed by the Prime Minister, envisages minimum contact of tax collectors with the assessees if they pay tax 20 per cent higher than last year and undertake to pay 18 and 15 per cent higher in subsequent two years. Such assessees would not have to furnish details of expenditure, and the receipt of the submission of the return would be accepted as an assessment order. As the scheme reduces the tax man's authority and discretion, chances of official harassment and corruption are minimised. Corrupt among the tax-men obviously felt incensed. It is the duty of the government to trace out the culprits and call them to account. While the incident exposes the mischief-making capacity of corrupt officials, it also spotlights the lack of effective liaison of the government with the powerful trading community. For several days that the fake form remained in circulation, it continued to generate a sense of resentment and disquiet in business circles - without eliciting any rebuttal or clarification from the government. Even as the move for a protest strike gathered momentum, the government seemed unaware of what was going on. Makhdoom Shahabuddin's explanation that he was indisposed and unable to attend office is a poor defence for inaction. The issue continued to be widely reported in the Press for quite some time and yet the minister claims the government remained out of touch with reality and failed to take any corrective action. This is a highly unsatisfactory situation, to say the least. It casts a very bad reflection on a political government whose organisational network, in case of an administrative failure, should normally be expected to keep it abreast of what the people saying or thinking about its policies or actions or the lack of these at any given time. A political government must realise that, at a popular level, it can be correctly briefed and guided only by its party cadre if it is properly organised and the party itself is democratically structured. As for the solution of the problem likely to be created by lTOs and IT practitioners who are both supposed to be losers if the self- assessment scheme succeeds, the minister proposes to set up facilitation centres to advise small businessmen. If these centres are manned by department officials they may turn out to be the proverbial wolves in sheep's clothing. The service envisaged could be provided by public-spirited people (especially retired personnel of the tax collecting departments) although such a breed is increasingly becoming a rare species in this country. DWS 950907 ------------------------------------------------------------------- Crisis in Punjab ------------------------------------------------------------------- Editorial Column THE federal government's action in imposing governor's rule in Punjab and dismissing the Wattoo government is distinguished by all the elements of haste. Among these the most notable is the absence of any prior consultation with the Junejo League or the other minor partners who form the PDF coalition at the Centre. No wonder then that the heads of the Junejo League and such asserted luminaries as Nawabzada Nasrullah Khan and Mir Balkh Sher Mazari, all of whom lend crucial support to Ms Bhutto's government, have been caught in a circle of unease. At the moment, therefore Ms Bhutto's more immediate task is not so much to start fishing for a viable government in Lahore as to put balm on the bruised egos of her coalition partners and to allay their fears, inspired by the past record of her party, that the PPP is out to grab all power for itself. In a sense what has happened in Punjab was almost inevitable. No doubts had been left in the minds of anyone that the Prime Minister had decided to get rid Mian Manzoor Ahmed Wattoo. But with the latter in no mood to leave without a fight, it was far from clear how his disposal was going to be effected Even though some of his disgruntled supporters in the Junejo League were up in arms against him, the majority of the PML(J) MPAs in Punjab were not. This added to the uncertainly surrounding the possible reaction of the PML(N) whose MPAs, let us not forget, constitute the single largest bloc in the provincial assembly, contributed to the fears of the federal government and doubtless played no small part in the precipitate action that has followed. The federal government's work during the pendency of governor's rule in Punjab is, of course, cut out for it. Apart from restoring relations with its miffed bed-fellows and ensuring that the turbulence in Pakistan's largest province does not reach the Centre, it will have to bend over backwards in order to put together a majority in the provincial assembly. This task, difficult enough in the present situation, is compounded by the absence in the PPP's provincial ranks of a central figure of enough stature and the requisite political skills who could lead the party out of the present crisis. There is no shortage of aspirants for the job of chief minister, but none who stands head and shoulders above his peers. Another option that is sure to the explored is to offer the chief minister's post to the Junejo League again but this would depend on two factors. Firstly, on assuaging the hurt feelings of Mr Hamid Nasir Chattha and the men around him and, secondly, on seeing that the loyalties of the Junejo League remain intact. It would not be unnatural for the four PML(J) dissidents who broke ranks with Mr Wattoo and resigned from their respective offices in concert with the rest of the PPP provincial ministers (a move which set the stage for the subsequent presidential proclamation) to nurse grandiose ambitious. But the candidacy of any one of them will be credible only with the unqualified support of the majority of the PML(J) MPAs, the prospects of which appear dim at present. Given this tricky situation, it does not take much prescience to foresee that the nation is in for an extended and intense period of horse-trading in Punjab with a premium on the loyalties of wavering or fickle MPAs. This will be a replay of the events in the Frontier Province when the Sabir Shah government was ousted and Mr Aftab Ahmed Sherpao had set out to create his majority, the obvious difference being that Punjab is a bigger chessboard than the Frontier and the gap in numbers in the Punjab assembly greater than the one Mr Sherpao was called upon to fill. Does this mean that the horse-trading and jockeying now about to start will put Mr Sherpao's capers in the shade? Already what has been done in Punjab hardly throws a flattering light on our democracy. While the imposition of governor's rule is in accordance with the letter of the Constitution, resorting to it the haste just to get rid of an obstreperous chief minister does no honour to its spirit. If Mr Wattoo had lost the trust and support of his colleagues, the ideal thing would have been for the governor to have asked him to prove his majority or for the PPP parliamentary party to have moved a motion of no-confidence against him. Even short of recourse to these constitutionally prescribed procedures, the question of leadership of the PDF coalition government in Punjab could have been resolved by less drastic methods, for instance, by mutual consultation between the two coalition partners or by requiring Mr Wattoo to demonstrate his majority support at a joint meeting of the PPP and PML(J) MPAs. Governor's rule should have been reserved for a graver state of affairs. But then, as is the common refrain across the nation, we do not live in ideal times. Politics has become a debased currency, while democracy is something to be suffered - not a concept to be cherished or respected. What makes the latest turn of events in Punjab all the more galling is the essential puerility of the issues at stake. The quarrel between Mr Wattoo and the PPP had nothing to do with principles or great matters of state. It sprang solely from issues rooted in the exercise of power and the distribution of patronage. If Mr Wattoo, who had clearly over reached himself had desisted from concentrating all power in himself, which he had done and conversely, if the PPP members had been more skilful and less hoarse about their ambitions, which they felt were being curbed by Mr Wattoo's style of governance, this crisis need not have come to pass. After all, the arrangement in Punjab served the interests of both sides - the PML(J) got a larger share of the cake than its numbers deserved, while the PPP, which had less seats in the Punjab assembly than its principal nemesis, the PML(N), was assured of stability in the power houses of Pakistani politics. Because of the immoderateness of one side and the ambition of the other, this sensible arrangement has now floundered exposing the political system as a whole to instability and further erosion of the people's faith in the good sense and the selflessness of the arbiters of their political destiny.


950904 ------------------------------------------------------------------- Jansher wins 7th Hong Kong title ------------------------------------------------------------------- Sports Report HONG KONG, Sept 3: Jansher Khan underlined his supremacy of world squash as won his seventh Hong Kong Open title with a 15-12 15-7 15-3 victory over Australian Brett Martin on Sunday. Jansher, the top seed and defending champion, took the initiative from the start and 32-year-old Martin never looked remotely like scoring a first career victory over the Pakistani. Fourth-seed Martin, winner of the Hong Kong title in 1993 after his brother Rodney Martin had surprisingly beaten Jansher in the semi- final, admitted that he felt sluggish after his five-game clash with fellow Australian Eyles the previous day. DWS 950905 ------------------------------------------------------------------- Sri Lanka collapse in Pindi match ------------------------------------------------------------------- Samiul Hasan RAWALPINDI, Sept. 4: Sri Lanka were sent packing for an embarrassingly low 104 by Pakistan's second string bowling attack as Test discard Shoaib Mohammad strengthened his claims for a Test recall with a flawless and patient unbeaten 64 for Patron's Eleven on the opening day of the three-day match at the Pindi Cricket Stadium here on Monday. The other not out stroke-maker with Shoaib was stylish batsman Saeed Azad who was batting on a hurricane 79-ball 71 as the home team finished the day at 179 for one, a lead of 75 runs with nine wickets intact. Shoaib, who last represented Pakistan in December 1993 against Zimbabwe at the very same ground, batted with great confidence and showed why he is rated as one of the finest batsmen in five-day cricket. Earlier, Arjuna Ranatunga committed two blunders that cost him dearly. Firstly, he became the first skipper to win a toss and bat first, contrary to tradition. The second mistake he committed was to leave out four star players viz. Asanka Gurusinha, Roshan Mahanama, Pramodiya Wickremasinghe and Janatha Silva who had played the opener at Karachi. Consequently, what happened in the end was no surprise. To add salt to the wound of Arjuna Ranatunga, he turned out to be one of two batsmen who became first ball casualties. The other batsman was opener Chandika Hathurusinghe. The termination of the entire Sri Lankan batting in a mere 40.2 overs (85 minutes after lunch) and that too by a second Pakistan string bowling attack, clearly indicates that the batting is very vulnerable in the absence of Aravinda de Silva, who will not be joining the team before the final Test at Sialkot. DWS 950906 ------------------------------------------------------------------- Salim files writ in High Court ------------------------------------------------------------------- Sports Report RAWALPINDI, Sept. 5: Former Pakistan captain Salim Malik has filed a writ petition in the Lahore High Court against the Pakistan Cricket Board (PCB). The writ was filed today by Malik's lawyer, Barrister Shahid Hamid. According to informed sources, the writ has been filed by the batsman challenging the PCB decision of not considering him for the first Test against Sri Lanka and probably for the entire series. Salim Malik has filed the writ on the basis that since nothing has been proved against him so far, his ouster from the national team was aimed solely at victimising him, added the sources. The sources maintained that Malik has also argued that if his ouster was specifically on disciplinary grounds, why weren't Rashid Latif and Basit Ali have not been banned "unofficially" on the same grounds. -------------------------------------------------------------------
Dawn issues