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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 15 June, 1995 Issue : 01/23 -------------------------------------------------------------------
The DAWN Wire Service (DWS) is a free weekly news-service from Pakistan's largest English language newspaper, the daily DAWN. DWS offers news, analysis and features of particular interest to the Pakistani Community on the Internet. Extracts from DWS can be used provided that this entire header is included at the beginning of each extract. We encourage comments & suggestions. We can be reached at: e-mail dws%dawn@sdnpk.undp.org fax +92 (21) 568-3188 & 568-3801 mail Pakistan Herald Publications (Pvt.) Limited DAWN Group of Newspapers Haroon House, Karachi 74400, Pakistan TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL ADDRESS! (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1995 ===================================================================

CONTENTS

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NATIONAL NEWS

Karachi ..........Altaf puts off protest campaign ..........7 die in city : Heavy firing, rocket attacks in Clifton ..........Underworld king shot dead ..........12 gunned down in city MQM ..........MQM not to attend budget session ..........Talk to me, says Altaf ..........PM renews talks offer to MQM High treason case against Nawaz US House passes bill to ease sanctions Part of military spares released More US investment on cards : Monjo India warned on Prithvi deployment : Assef hints at missile programme Bail granted to Abbas, Hamza Sharif Benazir failed to come up to expectations of people: Imran --------------------------------------

BUSINESS & ECONOMICS

KSE ..........Snappy rally by week-end ..........KSE index falls in post-budget trading Pakistani textiles attract DM12m worth of business Economic Survey : GDP, balance of payments improve BOI chief claims : Investment target being achieved Import-export gap widens to $2.06bn in 11 months 1300 KW power plant at Keti Bandar : Wu's firm issued letter of support Relief for salaried class : Borrowings, new taxes to fill Rs 46bn gap Allocation for PSDP raised by 7.2pc Importers resent WT hike : Businessmen breathe easier after budget +++The Business and Financial Week ----------------------------------------

EDITORIALS & FEATURES

The 'chicken or egg' discussion on Karachi By M. Ziauddin Contempt of court By Ardeshir Cowasjee A blueprint Pakistan cannot ignore Shaheen Sehbai Rays of light By Kunwar Idris *From Press Gallery ..........A nice gesture, through belated Nasir Malick ..........Both have skeletons in their cupboards Nasir Malick *From the Editorial Column ..........No alternative to talks ..........The state of the economy ------------

SPORTS

Salim Malik's cricket career a question mark =================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ===================================================================

NATIONAL NEWS

950611 ------------------------------------------------------------------------
Altaf puts off protest campaign ------------------------------------------------------------------------ *From Our Correspondent LONDON, June 10: The Mohajir Qaumi Movement has decided to postpone for a few days the protest campaign it was to begin after the l0th of Moharram against the allegedly derogatory remarks made by the Prime Minister in Kasur. The decision to postpone the campaign was announced by the MQM leader, Mr Altaf Hussain, on Friday. He said that because of the fast changing political situation in the country and keeping the views of the MQM coordination committee members and other responsible people in mind the campaign had been postponed. He did not give any new date for the campaign to start but stated that it was being postponed for a few days. The MQM leader emphasised that 'the MQM has always given preference to the interests of the country and the nation. Because of this the campaign is being postponed for a few days even though the Mohajir community as a whole has been outraged by Ms Bhutto's "racist" remarks and the MQM is under pressure to begin its protest movement'. He said: "To give top priority to the national interest and care for national solidarity and integrity is not the sole responsibility of the MQM. It is the duty of every patriotic person, in particular persons at the helm of affairs, to fulfil their national obligation by press ing for a public apology from the Prime Minister for her derogatory remarks and for an end to the killing of Mohajirs". He urged them to use their influence so that the operation against the Mohajirs was brought to an end and their political and economic rights were recognised. He reiterated the importance of his party by saying that it represented the aspirations of millions of Mohajirs. 'It is the voice of the poor and the middle class, having proved in the local elections in 1987, and the general elections in 1988, 1990 and more recently in 1993 that the Mohajirs consider the MQM to be their sole representative and have full faith in its leadership' he added. The MQM leader said it was not just and democratic to declare a party which has the backing of nearly 20 million people terrorists adding "Until the MQM is recognised as a party, which enjoys a legal status and carries the mandate of the people, it will not be possible to resolve the problems on a lasting basis." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950612 ------------------------------------------------------------------- 7 die in city : Heavy firing, rocket attacks in Clifton ------------------------------------------------------------------- By Our Staff Reporter KARACHI, June 11: A three-yearold son of a Custom officer was killed and he and his wife were critically wounded when their parked vehicle was ambushed at Boating Basin in Clifton about a kilometre from the Prime Minister's Bilawal House residence on Sunday night. At the time of attack, Dr Zahid Yaqoob, an assistant collector of Customs, his wife Ambreen and their son Roman were having food in a wireless-fitted official Land Cruiser (GP3987) at Boat Basin opposite the branch of Allied Bank of Pakistan. Around 9:00 pm, the armed men came there, two of them stepped out from one of the cars and sprayed Customs officer's vehicle with bullets. Roman died instantly while the couple were immediately operated upon at the JPMC. The armed men then sped away towards main Clifton roundabout. Just a few yards away from the Clifton Centre they fired a rocket at the Boat Basin shops and fired hundreds of bullets. The rocket hit a maroon colour car (Q-1472) of a shopkeeper parked across the road after breaking the protective grill at three places. The bullets hit the glasses and shutters of several shops. Mohammad Rafique, 25, a young exporter, who was dining in his second storey apartment was wounded when a stray bullet hit him. Another woman Shagufta Noor, 35, who was in her apartment was also wounded. In Orangi Town, armed men kidnapped two young vegetable vendors, Aftab and Rashid, and killed them. Two persons were killed in drive by shooting at Manama bakery in the Sharifabad area. The victims were identified as Osama, 25, and Naeem 14. In Liaquatabad, Naeem Ahmed, 25, was shot and killed in a targeted attack. A young man was killed and two others were wounded in Korangi. The victim was identified as Tariq. Police claimed that the victim was kidnapped from somewhere in the city and later he was shot dead on the main Korangi Road. Two pedestrians, Arif and Salim, were also caught in the shooting and killed. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ Underworld king shot dead ------------------------------------------------------------------------ By Our Staff Reporter' KARACHI, June 13: Aslam Natha, 40, said to be a under world operator, who allegedly ran a network of vice deans in the city, was gunned down on the busy M. A. Jinnah Road on late Tuesday afternoon. He also produced many films and owned picture house in the city. Natha, a former councillor of the Karachi Metropolitan Corporation joined Pakistan Muslim League in 1992 soon after local bodies dissolution. But PML leaders claimed he was not an "active" member. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950615 ------------------------------------------------------------------------ 12 gunned down in city ------------------------------------------------------------------------ By Our Staff Reporter KARACHI, June 14: Twelve more people, including two policemen, fell prey to the unending city violence on Wednesday raising the year's death toll to over 700. Four of the victims including an under-trainee constable were kidnapped, tortured and later their bodies were throw-in parts of the city. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950612 ------------------------------------------------------------------- MQM not to attend budget session ------------------------------------------------------------------- By Our Staff Reporter KARACHI, June 11: The Mohajir Qaumi Movement coordination committee announced on Sunday that its legislators would not attend the Sindh Assembly's budget session, summoned to meet on Monday because of government's vindictive attitude towards the MQM. In a statement listing its complaints, the committee alleged that some Sindh ministers, through newspaper statements, had threatened the arrest of MQM MPAs. The committee said neither had the government sought any proposal from the urban areas' representatives before budget making, nor had it included development schemes in the budget identified by the MQM MPAs. The committee said. "Sindh Assembly Speaker Ghous Bukhsh Mahar in a recent interview to a Sindhi language newspaper suggested an Israeli style commando operation to be launched against Mohajirs." It alleged that the speaker had recommended "carrying out bombardment on Mohajir settlements without any scruple". "Two months ago, the chief minister had announced that the MQM would be ruined. The Prime Minister, in a recent speech, had termed the Mohajirs and rats and traitors," the committee said. It said apart from their genocide, the economic and political rights of Mohajirs were being denied by the rulers. It alleged that recently the government had armed the Haqiqi men to kill MQM workers and leaders . "MQM workers and their relatives are being chased by government agencies everywhere in the city," the committee further alleged. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ Talk to me, says Altaf ------------------------------------------------------------------------ *From Our Correspondent LONDON, June 13: The Mohajir Qaumi Movement Leader, Mr Altaf Hussain, has said that he wants to make it clear to the Prime Minister and others in authority that he is supported by millions of people who consider him to be their leader. He said those who declare that if negotiations were to be held they will be conducted not with Altaf Hussain but with other serious-minded persons in MQM should know that so long as he was the accepted leader of the people he would continue to guide them. If negotiations were to be held, these will have to be conducted with him. If the rulers think that they will be able to persuade some of the MQM leaders and their elected representatives and form a separate group they are living in a fool's paradise. Mr Altaf Hussain, in a policy statement issued on Tuesday, said that the Government must realise that no office-bearer of the MQM or its elected representative would fall into their ploy. The game is not new and has been played during the three-year operation many a times. He said if any MQM worker because of the force of circumstances wanted to leave the organisation he or she would have full permission from Mr Altaf Hussain to do so. But, so far as he is concerned he will not compromise without any concrete solution of the Mohajir problems. "It is not a question of ministerial postings, but that of the political, economic and social well-being of 20 million Mohajir," he said. Mr Hussain said he had so far preached patience but it should not be taken as cowardice. If he in response to "a declaration of war" also took recourse to war then the "valiant" would know what war means. He said he was not afraid of death but he cares for innocent lives and believes in resolving issues not through war but negotiations. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ End to violence a prerequisite : PM renews talks offer to MQM ------------------------------------------------------------------------ *From Anjum Niaz ISLAMABAD, June 13: Prime Minister Benazir Bhutto on Tuesday held out an olive branch at the MQM by "cautiously" welcoming MQM leader Altaf Hussain's decision to postpone a protest campaign scheduled after the 10th of Moharram against her allegedly negative remarks uttered at Kasur recently, and invited them for a "political dialogue" to resolve the crisis. "We cautiously welcome MQM's decision to postpone their protest. It's a small step to bridge the vast gulf that exists between them and the government," Ms Bhutto told senior journalists at a special briefing at the Prime Minister's House, adding "their decision for the postponement of a protest has enough potential for us to start negotiations." However, Ms Bhutto said the "terrorists in Altaf group" would first have to relinquish their arms and end violence. "The ground realities have to match their words and we are watching the events with care," she observed. However, she agreed with a question from Dawn that the police should have anticipated such an attack by reinforcing their strength. Ms Bhutto said the police mobiles had been recently replaced by pickets in Clifton as they were meant to be more effective in combating such attacks. ´┐ŻBut we have been told that a police picket (near the Boat Basin) had been removed. We are making inquiries why that was done. The law enforcement agencies must be more vigilant to prevent such happenings." Clarifying the context in which she had called the terrorists belonging to the Altaf group "cowardly mice", Ms Bhutto said: "I have the highest of regards for the Mohajirs who are patriotic, hardworking Pakistanis living in Karachi. I myself am a Karachiite and know that the Mohajirs want to see peace and prosperity return to their city." However, she was categorical about not giving in to a "handful of terrorists who were holding Karachi hostage." She warned that her government would never compromise with a gun pointed to its head. She reminded the journalists that she had warned of a mini- insurgency as early as 1988, "because India wanted an East Pakistan kind of situation." The government currently is following a three-point strategy vis- avis Karachi: first it has strengthened its administrative arm and has cracked down on culprits involved in heinous crimes like the murder of Takbeer editor, Salahuddin, and MQM leader Azim Tariq whose murderers are now behind bars, secondly, it is practising a more even-handed policy vis-a-vis MQM (H) and MQM (A); and finally, it is concentrating on development schemes in order to provide succour to Karachiites in basic amenities like water, electricity and communication network. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950613 ------------------------------------------------------------------- High treason case against Nawaz ------------------------------------------------------------------- *From Shujaat Ali Khan LAHORE, June 12: Former prime minister Mian Nawaz Sharif has been charged with high treason in a complaint lodged with police by the Punjab Home Secretary, Hafeez Akhtar Randhawa. Also cited as the opposition leader's co-accused are the former federal interior secretary, Senator Chaudhry Shujaat Hussain and former provincial governor Mian Muhammad Azhar. The complaint has been filed in the Qila Gujjar Singh police station, Lahore, under Section 2 of the High Treason (Punishment) Act 1973, enacted pursuant to Article 6 of the Constitution which prescribes death as the only punishment for the offence. The complaint was produced on Monday before a five-member full bench of the Lahore High Court as it took up the bail petitions of the treason case accused. Other co-accused are: MNA Yasin Khan Wattoo; former federal law minister Chaudhry Abdul Ghafoor; Punjab PML, Vice President Azam Cheema and Information Secretary Binyamin Rizvi, MPAs Chaudhry Muhammad Riaz, Raja Javed Ikhlas, Sheikh Ijaz Ahmed, Mian Imran Masood, Chaudhry Akhtar Rasool and Raja Basharat; former MPAs Sohail Zia Butt, Chaudhry Wajahat Hussain and Chaudhry Shaukat Ali; and former PA Secretary Chaudhry Habibullah. The facts of the treason case as ascertained and brought out in investigation are stated in the complaint as follows: "After a "No-confidence motion" was overwhelmingly carried against Mr Ghulam Haider Wyne, the Provincial Assembly, with a large mandate, elected Mian Manzoor Ahmad Wattoo as Chief Minister, Punjab, on 25.4.1993. "Mian Muhammad Nawaz Sharif and his cabinet resumed the Federal Government pursuant to decision of the Supreme Court on 26.5.93. Mian Muhammad Nawaz Sharif soon thereafter, in conspiracy with others, sought to pull down the lawfully elected Punjab government which assumed office pursuant to the ouster of his nominee, Mr Ghulam Haider Wyne. All unconstitutional, illegal and underhand methods, including horse- trading, were employed for the purpose. "In order to deprive people of their right of electing a fresh Assembly to have their elected representative to regulate the affairs of the province, Mian Mohammad Nawaz Sharif and the other accused conspired to forestall the likely dissolution of the Provincial Assembly. "As a sequel to such designs, Chaudhry Habibullah, the then Secretary, Punjab Assembly was taken away from Services International Hotel by Chaudhry Wajahat Hussain and some other members of the Punjab Assembly at 8.45 pm on 29.5.93. The surreptitious manner of his being taken away was reported by Tariq Masood, Staff Officer of the provincial assembly, at police station, Race Court Road, Lahore. On this report case, FIR No 118 dated 9.5.93 under section 365-A, 109, 14. 148 and 149 PPC was registered at Police Station, Race Course Road, Lahore. "The investigating police in the said case tried to locate Chaudhry Habibullah, but to no avail. Proclamation in the national Press were issued and the Provincial government offered a large reward for the recovery of Chaudhry Habibullah. "Even the honourable High Court during the hearing of a constitutional petition required his presence and the media carried orders of the court requiring him to contact the nearest Sessions Judge or Registrar of the High Court, who were directed to ensure his safe appearance. However, Chaudhry Habibullah deliberately defied appearance and did not surface. "As things later crystalised, Chaudhry Habibullah in conspiracy with others had forged and fabricated a No-confidence motion purportedly moved against the then Punjab Chief Minister. The said document was fraudulently shown to have been received by Chaudhry Habibullah, who was then secretary of the provincial assembly, at 12 noon on 29.5.93. Photostat copy of the bogus document containing such an endorsement of Chaudhry Habibullah was utilised to attempt defeating the dissolution of the provincial assembly and thereby deprive the people of their right to elect the Members of the provincial assembly. A national crisis was thus occasioned in consequence and the constitutional functioning of the Government was completely paralysed. "Mian Mohammad Nawaz Sharif having failed to usurp power in the Province of Punjab through such unconstitutional methods, went berserk. Employing the so-called proclamation in terms of Article 234 of the Constitution, he appointed Mian Muhammad Azhar as the administrator of Punjab on 29.6.93. The federal government also unlawfully appointed some key officers in the province to replace those lawfully holding these offices to facilitate the usurpation. Chaudhry Shujaat Hussain, who was the interior minister, directed the rangers to move in and facilitate the takeover of the provincial administration. Neither the proclamation was sent to the President of Pakistan nor was the appointment of administrator suggested to him much less have his approval. In fact, the concept of an administrator of a province is wholly alien to the Constitution which only postulates the appointment of governor and that too by the President of Pakistan. "The then provincial government having verified that such a proclamation had not been made by the President of Pakistan fulfilled its Constitutional obligations and the provincial set up was preserved through the conscientious commitment to the country of responsible and patriotic officers/agencies. "The illegal, unconstitutional and subversive activities of Mian Muhammad Nawaz Sharif and his associates caused a national furore resulting in dissolution of the National as well as all the four provincial assemblies of the country. A caretaker government was installed and the result of the ensuing elections held on 6/9 October 1993, the transparency of which was internationally acclaimed, proved that Mian Muhammad Nawaz Sharif and his associates had lost the confidence of the people and their desperate attempts to perpetuate themselves in power through unconstitutional means had become conspicuously and evidently understandable. "The heinous crimes, inter alia, of subversion of the Constitution were condemned by all and sunday and the Special Assistant to the chief minister upon consideration of all the factors recommended legal action pursuant whereto FIR No. 496/94 under section 124-A, 120-B, 161, 166, 172, 173, 174, 465, 468, 469 and 471 PPC, and article 6 of the Constitution read with Section 2 of the High-Treason (Punishment) Act 1973 was got registered by Nasir Masood, Assistant Security Officer, Punjab assembly against Chaudhry Habibullah and others on 11.8.94 at police station, Qilla Gujar Singh, Lahore. "Chaudhry Habibullah was arrested in the case on 11.8.94. During the course of investigation on 13.8.94, he recovered the original document purporting to be the no-confidence motion. "The first and last pages of the document clearly differ from intervening nine pages in size, quality, colour and shape. "Mr Azam Cheema, Chaudhry Abdul Ghafoor, Mian Yasin Khan Watto, Akhtar Abbas Bharwana, Chaudhry Muhammad Riaz, Syed Binyamm Rizvi, Raja Javed Ikhlas, Mian Imran Masood, Chaudhry Akhtar Rasool, Shaikh Ejaz Ahmad and Suhail Zia Butt, accused, were also arrested, Chaudhry Shaukat Ali and Chaudhary Wajahat Hussain could not be arrested and were declared proclaimed offenders. The arrest of Mian Muhammad Nawaz Sharif and Chaudhry Shujaat Hussain is still to be made, Chaudhary Habibullah, Syed Binyamin and Suhail Zia Butt are in judicial lock up while the other accused mentioned above are on interim bail. "Evidence forthcoming reveals that pursuant to conspiracy, Chaudhary Wajahat and Chaudhary Riaz brought Chaudhary Habibullah around 8.45 pm on 29.5.93 from Hotel Services International to his house where the late Ghulam Haider Wyne, Chaudhry Ghafoor, Raja Javed, Mian Imran, Akhtar Rasool, Ejaz Ahmad, Raja Basharat, Sohail Zia Butt, Binyamin and Shaukat Ali, the MPAs procured his signatures in affirmation of the receipt of a no confidence motion, whereon the time of its receipt was given as 8 pm. Chaudhary Habibullah was thereafter taken to the house of Mian Nawaz Sharif where the former called Mian Yasin Wattoo and procured the replacement of the first and last pages of the so-called no-confidence motion so as to reflect its receipt by Chaudhary Habibullah at 12 noon. On the direction of Mian Nawaz Sharif, Chaudhary Habibullah was initially taken to the house of Chaudhary Shujaat in Gulberg, Lahore, and later to Islamabad. "Since the then Federal Government was headed by Mian Nawaz Sharif, Chaudhary Habibullah remained in their luxurious hospitality and was even produced before the Assistant Commissioner, Islamabad, on 13.6.93 where he attempted to defuse the criminal case registered at the instance of Tariq Masood, PA Staff Officer, against Chaudhary Wajahat Hussain etc. However, this statement was never produced before the full bench hearing the Writ Petition of Chaudhary Pervaiz Ilahi. Although Chaudhary Habibullah did not appear when he was summoned through the Press and electronic media before the Hon'ble High Court when required, however, without being summoned in the quashment petition of Chaudhary Wajahat, he appeared on 26.7.93 telling a tell-tale story of having freely moved out of Lahore on the night of 29.5.93 and having remained in Islamabad thereafter. He also deserted his job as Secretary of the Punjab Assembly and when arrested, was serving in the office of Muslim League at Lahore. "All the accused conspired to subvert the Constitution by use of unconstitutional means and they are guilty of high treason punishable under Section 2 of the High-treason (Punishment) Act of 1973 besides having committed offences under section 120-B, 465, 466, 468, 469, 471, 161, 166, 172, 173 and 174 PPC and they be punished accordingly." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950609 ------------------------------------------------------------------------ US House passes bill to ease sanctions ------------------------------------------------------------------------ *From Shaheen Sehbai WASHINGTON, June 8: The US House of Representatives on Thursday passed the Foreign Aid Bill which proposes the necessary changes in relevant laws to ease Pressler sanctions against Pakistan. The Bill now waits for the Senate to pass its version of the Bill following which the members of the two Houses would hold a conference to agree on a single draft which could be sent to the President for approval. The President, is however, likely to veto it as he says it is an attempt by Congress to micro manage foreign policy and impinges on his authority. The House passed the $16 billion bill with 222 votes to 192 with the Republicans voting for the bill and the Democrats opposing it. Attempts by the Democrats to delay and recommit the bill to the House Committee were defeated in the House. Sixteen Republicans voted against the Bill while 12 Democrats sided with the Republicans, violating their party line. The changes to the Pressler Amendment were incorporated in what was called the American Overseas Interests Act (or the Gillman Bill) which basically cuts foreign aid by the United States by $ 1 billion in two years. It is $ 1.8 billion less than what President Clinton had requested for the next year's budget. It also abolishes the USIA, which has overseas offices under the name of USIS and includes the Voice of America, the entire USAID programme and the Arms Control and Disarmament Agency and consolidates them into the State Department. The changes proposed in the Pressler Amendment include resumption of non-military assistance to Pakistan which, among other things, includes development aid to NGOs, allowing OPIC cover for US investment in Pakistan, aid for controlling narcotic trade, assistance for international military education and training programme and aid to counter international terrorism. The Senate Foreign Relations Committee passed its version of the Foreign Aid Bill on Wednesday and sent it to the floor for discussion and passage. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950609 ------------------------------------------------------------------------ Part of military spares released ------------------------------------------------------------------------ *From Our Staff Correspondent WASHINGTON, June 8: The United States has released the first shipment of Pakistan military equipment, blocked under the Pressler sanctions for the last five years, diplomatic sources said on Thursday. "Some 35 out of the 600 items that were blocked as unrepaired equipment under the Pressler ban have been sent by the Pentagon to freight forwarders for onward shipment to Pakistan," a senior Pakistan diplomat confirmed. The agreement to release the equipment was reached at the first Pakistan-US Defence Consultative Group meeting held in Washington on May 31 and June 1. The sources said some of the Pakistan Air Force equipment had been sent by the Pentagon direct to commercial contractors who would repair the equipment as there was no further ban on getting it repaired at market prices. "Part of the first shipment has been sent to freight forwarders and it is now up to Pakistan to take it back or get it repaired or throw it away," the sources said. Observers said it was the first achievement made by Pakistan as the unrepaired equipment was also blocked under the Pressler sanctions along with the new purchases made by Pakistan, including the 28 F-16 aircraft and a lot of spares. They noted the fact that some of the unrepaired equipment had directly been dispatched to contractors for repairs, which was a clear signal that the US authorities had no objection to its repairs, once the equipment was out of the ambit of the Pressler ban. Decision has yet to be taken on the bulk of "repaired" equipment, but legislation in Congress is pending which will allow return of this equipment, provided it had not been upgraded. This legislation is in the form of a "Sense of Congress" resolution, adopted by the House Foreign Relations Committee which is not binding, suggesting that the blocked Pakistani F-16 aircraft should be sold to a third country and the proceeds, whatever they may be, should be passed on to Pakistan without any obligation of making up any deficit, if there is any. The resolution also says that all equipment sent by Pakistan for repairs should be returned, provided no upgradation has taken place. Pakistan diplomats say the process of return of the unrepaired equipment, now begun, would continue until all the 600 items are either sent for repairs to commercial contractors or lifted back by Pakistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950613 ------------------------------------------------------------------- More US investment on cards : Monjo ------------------------------------------------------------------- *From Shaukat Ali LAHORE, June 12: US Ambassador to Pakistan Mr John Monjo said on Monday that more US investment was on cards for Pakistan. He said apart from investing in the energy sector US investors were keenly learning about prospects for initiating joint ventures in Pakistan in areas like computer software and automobile manufacturing. Addressing leaders of business class at the Lahore Chamber of Commerce and Industry Mr Monjo pointed out that about 40 % of the Memorandums Of Understanding (MOUs), signed between Islamabad and US investors early this year mainly for power generation, would be materialised shortly. "There is no denying the fact that American businessmen feel Pakistan as the most favourable place for investment in this part of the world," he said. Acknowledging Pakistan's strategic location in South Asia Mr Monjo said the US administration wanted to develop long term economic association with Pakistan. "America wants to further its economic ties with Pakistan on modern lines," he noted. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950612 ------------------------------------------------------------------- India warned on Prithvi deployment : Assef hints at missile programme ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 11: Foreign Minister Sardar Assef Ahmed Ali on Sunday indicated that Pakistan would go ahead with indigenous missile production programme if India deployed Prithvi missile on the borders. Winding up discussion on Charar Sharief in the National Assembly, the Foreign Minister said that manufacturing of Prithvi missile has forced Pakistan to respond. "We will respond and we will do it within the parameters of Missile Treaty Control Regime, (MTCR)", Sardar Assef added. Apprehending that Prithvi missile would be deployed along Pakistan's borders, he said these were being developed only for Pakistan. "Prithvi gare Pakistan specific", he said while adding that India did not need missile for Bhutan, Bangladesh or Nepal and China was beyond the range of these missiles. He repeated that Prithvi would act as tension multiplier in the region. He informed the National Assembly that President Farooq Ahmed Khan Leghari during his visit to New Delhi on the occasion of SAARC summit had made it clear to the Indian Prime Minister Narishma Rao that production of Prithvi would further fuel the tension between the two countries. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ Bail granted to Abbas, Hamza Sharif ------------------------------------------------------------------------ Bureau Report LAHORE, June 13: MNA Abbas Sharif and Hamza Shahbaz Sharif were on Tuesday admitted to bail in three cases in the sum of Rs 35 million and Rs 7 million, respectively. Interim bail was extended to Mian Abbas Sharif, brother of Mian Nawaz Sharif, in view of the current budget session of the National Assembly, and to Hamza Shahbaz son of Mian Shahbaz Sharif, because the charges against him and other minor or female directors of Hudabia Paper Mills and Hudabia Engineering Works have been dropped by the FIA under a High Court order on a quashment petition. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950615 ------------------------------------------------------------------------ Benazir failed to come up to expectations of people: Imran ------------------------------------------------------------------------ *From Athar Ali LONDON, June 14, The former Pakistani cricket hero, Imran Khan, has accused Prime Minister Benazir Bhutto of having failed to come up to the people's expectations. "She came to power with good intentions," he said, but her government had lost credibility as she took too much on rhetoric. Imran Khan had little hope that the team of Ms Bhutto would be able to tackle the crisis facing the country. He also blamed her for relying too much on the United States. Imran Khan's hour long profile was shown on the British commercial channel, Channel Four television. The profile "Life after Cricket", produced by Tariq Ali, contained interviews with Prime Minister Benazir Bhutto who spoke on Imran's hospital project, denying that the government was creating obstacles in his way. Instead, she claimed that her and previous government had supported the hospital project. Imran, during the course of the programme, acknowledged that the Nawaz Sharif government had given him a piece of land and $250,000 initially for the project, but since then the assistance from the government was not only stopped, but the present government banned him from television appeals to raise funds for the hospital. Imran was presented in the programme as a star challenging Pakistan's ruling elite. The country, the programme's narrator said, was in search of a hero where others had failed. The country was waiting for a change and those who would spearhead it would need a figurehead with a clean reputation. This is where Imran may come in, according to the programme's narrator. There were voices in the programme, such as ladies from the Women's Action Forum, who criticised Imran for his "arrogance and conceit". He, they said, was being propped up by certain "dangerous" forces. "He is riding on the shoulders of the right-wing Pasban movement", they said. He, however, denied being used by any right-wing group. He said his interest in Islam developed gradually and he had studied religion seriously to formulate his views. The former cricketer repeated his accusation against the country's elite for many of the ills. He said he would now go ahead with his programme of mass literacy in the country. Imran Khan feels that the country is facing a crisis in education because the system has collapsed. He wants to raise mass literacy on self-help basis. He deems it essential that the ordinary people should be given proper education. ===================================================================

BUSINESS & ECONOMICS

950611 ------------------------------------------------------------------------
Stock Exchange : Snappy rally by week-end ------------------------------------------------------------------------ By Muhammad Aslam AFTER several lean weeks, stocks showed an improved performance during the last week as a snappy rally at the fag end of the week enabled many blue chips and MNCs to finish partially recovered. Although the market has to go a long way to be back on the rails, strong pre-budget selective buying support has raised hopes that the recovery process might have already been initiated. But, the tense city situation and fresh incidence of violence could intercept any budding rally as it was not backed by bullish fundamentals. That was perhaps why general investors kept to the sidelines awaiting the market to take a definite turn. The Karachi Stock Exchange index of share prices managed to show a recovery of 38 points at 1,559.99 as compared to 1,545.87 a week earlier, reflecting the strength of the base shares. Heavy buying by the National Investment Trust (NIT) and some other financial institution to cover year-end positions was another aiding factor prompting bargain-hunters and speculators to buy at the current lows. Corporate announcements were generally good as most of the leading companies have announced good pay-out for the year ended Dec 31, 1994, and were one of the supporting factors for the late week-end rally. Most analysts believe that forecast of lower corporate profits owing to pressures on the economy will continue to have a negative impact on the share trading, stray flutters here and there notwithstanding. The interesting feature was that most of the banks shares came in for modest short-covering at the current attractively lower level and finished partially recovered under the lead of AlFaysal Bank, Prime Bank, Bank of Punjab, Citicorp, Faysal Bank, and Crescent Bank. Although corporate announcement from leading among them were not very encouraging but some of the leading insurance shares came in for active support barring Adamjee Insurance, and rose sharply under the lead of Crescent Star and Dadabhoy Insurance, which rose by Rs 5.00 to Rs 8.00. Synthetics shares were, however, actively traded owing partly to their relative viability as they are considered to be in low risk areas. Pakistan Synthetics was traded higher but other actives including Dewan Salman and Dhan Fibre were traded fractionally lower. A good dividend of 30 per cent by Fecto Cement evoked interest at the current lower levels but both energy sector barring PSO and some others which rose and auto shares fell under the lead of Hinopak Motors and Pak-Suzuki Motors. PTC vouchers remained the market leader but failed to assume the role of a trend-setter and was not massively traded as it did a week earlier. Most of the MNCs in the chemical sector eased slightly on selling and fell under the lead of Fauji, Engro Chemicals, Searle Pakistan, Highnoon Lab but Boots and ICI Pakistan were an exceptions rising modestly, Spencer (Pakistan) and some other leading shares on the countries were traded lower. A big gain of Rs 30.00 in Grays of Cambridge, perhaps a belated reaction to a good dividend announced some day back highlighted the trading on the MNCs Shell Pakistan, Lever Brothers, and Dyno Pakistan followed it, finishing with good gains on active follow-up support from some of the foreign funds. Heavy speculative buying in MCB after the news of a big profit of Rs. 252 million for the year 1994, tirggered heavy covering purchases init despite a below market bonus shares of 18 percent. Some of the MNCs also joined the late week run-up under the lead of Glaxo Lab, Wellcome Pakistan, Nestle Milkpak Pakistan Oilfields, and Sandoz Pakistan, finishing with good gains. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950615 ------------------------------------------------------------------------ KSE index falls in post-budget trading ------------------------------------------------------------------------ By Our Commerce Reporter KARACHI, June 14: Stocks gave a mixed reaction to the new budget during the post-budget session as investors rolled positions from the taxed sectors to those which were the chief beneficiaries of the fiscal incentives. But investment sector, notably the modarabas, already groaning under the weight of some adverse steps, are expected to be hit further after 15 percent tax on bonus shares and so could be others including leasing shares. Floor brokers said, the government has tried to balance the budget to provide industry with some incentives where possible but it had its own limitations. Most of the indexed shares were, however, hit hard under the lead of Dewan Salman, PTC, which having a formidable weightage pull the index down by 21.41 points at 1,610.85. Traded volume was large at 13.914 million shares, bulk of which about 6 million shares went to the credit of PTC followed by Hub-Power, 3.871 million shares, Alico, 1.566 million shares, Dewan Salman, 0.942 million shares, and Faysal Bank, 0.6 million shares. Out of the total 52 changes, 24 shares rose, while 199 fell, with nine holding on to the early session levels. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950611 ------------------------------------------------------------------------ Pakistani textiles attract DM12m worth of business ------------------------------------------------------------------------ By Our Staff Reporter KARACHI, June 10: Pakistani Textile exporters achieved a high profile presence in the recently held 'Import Fair Berlin 1995' where they transacted export business worth 12 million mark. A report from Germany quoting Pakistan's Commercial Counsellor in Pakistan Embassy at Bonn Muhammad Y. Memon said the Fair offered quotas of 66 tons of yarn, 225,000 pieces of men's shirts and T-shirts, 215,000 pullovers and knitted jackets, 158,000 pieces of shirts of woven fabrics for men and boys, 223 tonnes of terry towels and bathrobes, and 149 tonnes of bed linens and fabrics. Some 37 Pakistani companies participated in the Fair and they lost little time in contracting for the textile quotas available to them. The Import Fair Berlin has acquired a special significance because of the special quotas granted by the European Union (EU) in textile categories. These quotas are in addition to the normal quotas that developing countries are eligible for imports into EU countries. "The Pakistani garment trade is closely following the fashion trends in Germany and the rest of Europe, in a bid to keep abreast of the consumer preferences and intensify its market penetration suitably," the report points out while referring to the two-way flow of trade between Pakistan and Germany. According to the report German-Pakistan trade is on a good wicket. "Pakistan's exports to Germany last year touched some DM 540 million while imports from Germany reached some DM 618 million in the same period," the report says. While referring to the recently held seminars on "Fashion Development and Market Information," held recently at Karachi and Lahore, the reports says another investment seminar is being planned on July 6 at Cologne to be organised by the German Investment and Development Company (DEG). The seminar will focus on Pakistan's quest for suitable technology for production of fabrics and other areas like infrastructure, power transmission and coalfired power generation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950613 ------------------------------------------------------------------- Economic Survey : GDP, balance of payments improve ------------------------------------------------------------------- *From Ihtashamul Haque ISLAMABAD, June 12: The fiscal year 1994-95 witnessed mixed economic trends with the GDP growth rate accelerating at 4.7 per cent against last year's 3.8 per cent, the balance of payments position showing significant improvement but the rate of inflation at 13 per cent going way past the target of 7 per cent fixed for the year. The Economic Survey for 1994-95, released here on Monday claimed a marked improvement in the overall economy in which many structural and macro economic reforms have been successfully implemented. The balance of payments position improved as a result of sharp climb of exports which recorded 16.8 per cent increase exceeding the annual targeted growth of 15.1 per cent. This was attributed to 18.2 per cent increase in cotton manufactures, 89.0 per cent increase in rice exports, 20.0 per cent in leather, 26.8 per cent in carpets, 24.3 per cent in petroleum products and 41.4 per cent in other items that mainly included non-traditional exports. The balance of payments position further improved when home remittances and the foreign exchange reserves touched a 2.6 billion mark. Fixed investment went up by 17 per cent. And major crops registered growth of 6.4 per cent, compared to negligible growth in 1993-94 about which no figures were given in the Survey. It was also claimed in the Survey that the cotton crop recouped from the crisis of the preceding two years and was now poised for stable recovery. However it was admitted that domestic prices came under greater pressure during the first half of the year. Despite some improvement in the second half the "issue remained of major concern to the government". The Consumer Price Index (CPI) recorded an increase of 8.2 per cent during the first half of the year and 2.45 per cent in January-April 1995. And in terms of CPI the annual inflation rate was conceded to be 13 per cent for 1994-95. Inflation was an area where the government terribly failed to rectify the situation with Prime Minister Benazir Bhutto quoted as saying in the recently held National Economic Council (NEC) meeting, "we have implemented all the IMF conditionalities to restrict the rate of inflation but failed". She reportedly said that her government would have to find out the solution of this rising rate of inflation. The solution being considered, according to insides, is the imposition of taxes amounting to Rs 55 billion, in all effect to overcome the problem of inflation as well as of budget deficit. The Survey claimed that the overall performance of the economy looked good due to the major commodity producing sectors of agriculture and manufacturing which set the healthy trends. To encourage the manufacturing sector, credit facilities for private sector were extended. Special measures including relaxation in prudential regulations, rescheduling and restructuring of loans were implemented to support the textile industry. The Board of Investment (BOI) was reconstituted with fresh mandate to introduce aggressive policies for attracting private foreign investment. A new package of incentives was provided for industries in the special industrial zones. Similar packages of incentives were introduced for petro chemicals, agro based food industry and electronics. In response to attractive government policies, the foreign investment significantly increased by 157.6 per cent during July-March 1994-95. Portfolio investment increased by 280.4 per cent and direct investment by 24.6 per cent during the period. Some new cement plants, heavy electrical complex, one chemical plant and a number of textile mills were commissioned during the year. Money supply was targeted to increase by 11.8 per cent during the year 1994-95. During the first quarter of the year it grew by 10 per cent (Rs. 66.59 billion) which is less than the expansion of 11.2 per cent recorded in the corresponding period last year. The credit to the private sector increased by Rs. 49.05 billion against the annual target of Rs. 55.45 billion, showing substantial rise over Rs. 30.7 billion credit advanced in the same period last year. Government borrowing for budgetary support was recorded at Rs. 33.37 billion against the target of Rs. 15 billion for 1994-95. While the Survey accounted various measures to boost education and health facilities to the people it particularly talked about the Social Action Programme which was designed to address the neglected basic social services in a co-ordinated and concerted manner. The SAP called for improving the general lot of the people by spending 8 billion dollars during next five year times. An amount of Rs 42 billion was earmarked for the current fiscal. The donors have so far provided about 500 million dollars for SAP and the government is further expects to have 500 million dollars for the launching of SAP phase-2, during next financial year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950613 ------------------------------------------------------------------- BOI chief claims : Investment target being achieved ------------------------------------------------------------------- *From M. Ziauddin ISLAMABAD, June 12: The Board of Investment (BOI) which serves as the country's top investment guide has helped put together, in the past one year, three major projects amounting to nearly two billion dollars of foreign investment, all in and near Karachi. "The ICI is putting up a chemical plant in Karachi costing $500 million, while, the Middle East based Crescent group is setting up a $500 million hydrocracker plant in the city in a joint venture with American and Canadian groups. And in Badin, the South Korean conglomerate Hyundai in collaboration with the Pakistan State Oil (PSO) is establishing a refinery costing about $800 million ", the soft-spoken, secretary of BOI, Syed Mohibullah Shah claimed in an exclusive interview with Dawn. Backing his claim the BOI secretary pointed out that the ground breaking ceremony of ICI plant has already been performed while for the Hydrocracker plant the ceremony is scheduled to be held in August this year. And for the refinery the ground breaking is expected to take place in the last quarter of the current calendar year. Mohibullah Shah further claimed that the amount the ICI is investing in its new plant was more than what the world's chemical giant has invested in this country over the past 40 years. Shah said that the single most important achievement of the Board in the last 18 months has been its success in whetting the interest of the Pakistanis living abroad in investment opportunities in their home country. "We have held investment conferences in various parts of the world. And we have produced publications containing vital and up-todate information about the country's economy and other relevant data that the prospective investors look for before deciding to invest in a particular country and distributed these by the thousands in and outside the country", he said. These publications which also include about 70 feasibility studies have also been made available to both the international investors as well as Pakistanis living abroad. Answering a question on the feedback, he said following this information blitz, not only has the BOI started getting queries from the regular foreign investors but also from Pakistani entrepreneurs, professionals. "We were able to help one of these Pakistani enthusiasts to set up a synthetic carpet plant at Hattar in the NWFP recently," he said. Discussing the problems in the way of accelerated foreign investment activity, Mr Shah said in 1989 the foreign investors used to question the credibility of investment policies fearing that these would change with the change of government. But now, they have no such fears. They have seen over the last six to seven years that while the governments kept on changing the over all economic policies had remained largely consistent. "Now the biggest stumbling block is our bureaucratic culture which dampens the spirit of investors with its proverbial red tape," he observed. The BOI will organise an investment conference in Islamabad in the last week of October for Pakistani expatriates living in the Gulf and the Middle East. In July the Board will organise investor conferences in various South East Asian cities and another such conference would be held in early October in Japan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950613 ------------------------------------------------------------------- Import-export gap widens to $2.06bn in 11 months ------------------------------------------------------------------- *From A Correspondent ISLAMABAD, June 12: The import-export gap during the first 11 months of 1994-95 widened to $2.06 billion, which is already more than the deficit of $ 2.03 billion suffered during the full year, 1993-94. According to the statistics compiled by the Federal Bureau of Statistics, the period July-May (1994-95) recorded exports worth $ 7.15 billion as against imports which amounted to $ 9.92 billion during the same period. It is likely that the gap would widen further during the final month of the year, thus bringing the foreign exchange reserves under greater pressure. "One can draw small consolation from the fact that Pakistan will make it to the exports target ($ 7.8 billion) after a long time, because further lowering of tariff rates from 70% to 50% in 1996-97 under agreement with IMF will mean more imports and that those too of consumer goods and electronic gadgets," commented an independent economist. Consequent upon the restrictions on Afghan Transit Trade (ATT), the legitimate import of these goods will go up, further raising the import bill but because of lowering of tariffs, accrual to government revenues will be very low. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ 1300 KW power plant at Keti Bandar : Wu's firm issued letter of support ------------------------------------------------------------------------ Bureau Report ISLAMABAD, June 13: Consolidated Electric Power Asia (CEPA), the Hongkong-based company owned by business tycoon Gordon Wu, has been issued letter of support (LoS) by Private Power and Infrastructure Board to set 1300 MW power plant at Keti Bandar, near Karachi. The LoS has been issued to CEPA on submission of Rs 285 million as performance guarantee in favour of PPIB, Water and Power Secretary Salman Farooqi told a Press conference on Tuesday. CEPA would set up two power generating plants, each of 650 MW capacity, fired by imported coal. "We have thoroughly examined their assets/ documents. They do not own any coalmine", PPIB Secretary Hassan Nawab told Dawn. CEPA had indicated that they would import coal from China or some other Far Eastern country, he said. The issuance of LoS to CEPA came in the wake of prolonged discussions spread over last six months. During the period the national Press had expressed a great deal of skepticism about the fate of Gordon Wu's pledge of investing 8 billion dollars in Pakistan. According to the initial memorandum of understanding signed by CEPA with the government of Pakistan, it had to set up four more units to be run on the Thar coal and to undertake a feasibility study on the development of Thar coalmines. "A number of other issues pertaining to provincial government are yet to be resolved", Mr Nawab said. The PPIB would sign the final agreement with CEPA sometime in July, he added. The bank guarantee has been submitted at the rate of Rs 1OO,OOO per MW which would be liable to be forfeited if the company failed to achieve financial close within the stipulated period of one year, an official of PPIB said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950615 ------------------------------------------------------------------------ Relief for salaried class : Borrowings, new taxes to fill Rs 46bn gap ------------------------------------------------------------------------ *From Ihtashamul Haque ISLAMABAD, June 14: The federal government on Wednesday announced an investment-oriented and largely non-inflationary budget (1995-96), with a total outlay of Rs 431.2 billion, showing a gap of about Rs 46 billion which has been attempted to be filled with bank borrowing of Rs 30 billion and additional taxes of Rs 16.3 billion, including Rs5 billion *from an increase of 5 per cent in the prices of POL. The budget makers found room to keep the taxation burden at the minimum by increasing the limit of budgetary deficit target for the next year *from the earlier proposed 4 per cent to 5 per cent of the GDP and reducing the tariff by only 5 per cent rather than by 20 per cent as prescribed by the IMF. The size of the budget was 14.5 per cent higher than the revised estimates of Rs 376.4 billion for 1994-95. The major share of the budget went into debt servicing which was Rs l33 billion and was increased reportedly on the pressure of the donors specially the International Monetary Fund (IMF). About income tax, a decision has been taken to broaden the self assessment schemes. The existing scheme is applicable to non-corporate tax payers with income up to Rs 20,000 only. The new scheme shall apply to all non-corporate taxpayers, including those filing tax returns for the first time, irrespective of any limits on the declared income. Those taxpayers who will pay 20 per cent more in 1995-96 would be entitled to avail this scheme for the next two years by paying 15 per cent more in each of those years. Talking about customs, the state minister said it had been decided to slow down the restructuring of the tariff regime. Now maximum rate of duty in the tariff is being brought down by only 5 per cent i.e. from 70 per cent to 65 per cent ad val. By doing this the government plans to collect Rs 3 billion in revenue. Incentives were also offered to textile industry. "With a view to restoring good health to our largest and oldest industry the duty on PTA is being reduced from 25 per cent to 15 per cent, on polyester chips, *from 30 per cent to 20 per cent, on polyester staple fibre from 30 per cent to 20 per cent and on a caprolactum from 25 per cent to 15 per cent. Similarly, duties on man-made yarns and thread are being reduced *from Rs330 per Kg plus 25 per cent to 25 per cent, when not locally produced, and to 35 per cent when locally produced", he said. The duty on engineering goods has been reduced from the existing range of 25-45 per cent to the range of 10.25 per cent ad val. Duties on a large number of inputs for electronics industry are also being reduced *from 25 per cent to 10 per cent ad val. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950615 ------------------------------------------------------------------------ Allocation for PSDP raised by 7.2pc ------------------------------------------------------------------------ *From Mohammad Ilyas ISLAMABAD, June 14: Federal Minister of State for Finance, Makhdoom Shahabuddin on Wednesday announced an today of Rs 96.5 billion for Public Sector Special Development Programme (PSDP) for 1995-96, showing an increase of 7.2 per cent over the budgeted allocation of Rs 90 billion in the current financial year. Out of this, Rs 71 billion has been set aside for Federal PSDP. This means that Rs6 billion out of the total increase of Rs 6.5 billion in PSDP outlay has been arrogated by the Federal Government for its own programmes in the next financial year. WAPDA, OGDC and National Highway Authority will be getting less than last year, while the allocation for Pakistan Telecommunications, for which Rs 1 billion had been set aside in the current year's ADP, is zero. The reason presumably is that PTC is to be passed to the private sector within the ensuing financial year. The only heads under "Corporations" which will receive more than last year are: village electrification (Rs 2.5 billion as against Rs 2 billion in the current year); and National Highway Authority (Rs ll.92 billion as against Rs 11 billion in the current year). With regard to other heads, the government has decided to allow WAPDA, PTC and OGDC to raise their resources in accordance with their investment needs, without the limitation that a budgetary framework imposes. Only those portions of development expenditure of these autonomous bodies are reflected in the PSDP, which pass through the budget. The allocations for WAPDA and OGDC in PSDP are: WAPDA: Rs 9.728 billion. OGDC: Rs 0.5 billion. The aggregate share of education & training, science & technology and health & nutrition, budgeted in total PSDP of 1994-95 was just 2.64 per cent, in spite of recent efforts to change the situation for the better. The 1995-96 PSDP, however, has tried to improve it substantially by raising the proportion of these vital sectors to 4.4 per cent. Taken separately, the outlay for education and training has been raised *from Rs 613.1 million in 1994-95 to Rs 1613 million in 1995-96 ADP, for health & nutrition from Rs l461.1 million to Rs 2264 million and for science & technology from Rs 297.8 million to Rs 408.9 million. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950615 ------------------------------------------------------------------------ Importers resent WT hike : Businessmen breathe easier after budget ------------------------------------------------------------------------ By Our Staff Reporters KARACHI, June 14: The 1995-96 budget, presented on Wednesday afternoon, has apparently been well received by the business community as about 80 businessmen who assembled at the Karachi Chamber of Commerce and Industry to hear the budget speech of State Finance Minister Makhdoom Shahabuddin looked satisfied and their spontaneous comment was: "It is balanced and against our apprehension of being a taxloaded document." Reports leaking out in the print media during for the last few weeks suggested that 1995-96 budget would come out with Rs 35 to Rs 60 billion of additional taxation measures with a massive cut in the rate of import duties fixing a maximum rate up to 50 percent. "It could have put industry in a precarious condition," a senior industrialist commented who looked happy on slowing down of the implementation of IMF prescription by the government as Makhdoom Shahabuddin announced slashing down of import duty rates to 65 percent. "This slowing down in reducing import duty rates will give enough breathing space to the domestic industry to gear up for competing with the imports," remarked industrialists. "By and large it is a balanced budget and is not as tax-loaded as feared," said the recently-restored president of the Federation of Chambers of Commerce and Industry (FPCCI) S.M. Muneer. Speaking at a joint Press conference with the president of Karachi Chamber of Commerce and Industry (KCCI) Ahmed A. Sattar at the KCCI office he, however, criticised the increase in Withholding Tax on imports and urged the government to withdraw it. He lauded the Rs 10,000 increase in the exemption limits of Income Tax but felt that the increase was insufficient and demanded that the exemption limit be raised to Rs 75,000 instead of Rs 45,000. He termed the Rs 50 increase in the Agricultural Tax per Price Index Unit (PIU) as insufficient and felt that the untapped Agricultural Tax potential would affect industrial assesses. Muneer appreciated continuation of Fixed Sales Tax and selfassessment schemes and expansion of services tax net. He also lauded relatively greater allocations for education and health sector. The Chairman of All Pakistan Textile Mills Association (APTMA) Mr Anwar Tata has called the budget a balanced document that should lead to revival of the sick industrial units and particularly the long ailing textile industry. He particularly appreciated the budgetary measure of debt-equity swapping of the sick industrial units. "It will benefit the sick industries by sparing them of the burden of mark up that accumulates on outstanding loans while the banks and financial institutions will transform their non-performing assets into valuable shares." Mr Anwar Tata estimated that out of Rs 42 billion loans estimated to have been stuck up against 3,300 sick industrial units shares worth Rs 15 to 20 billion should come out in the market in next one year. "This should help to revive the sick industrial units and new entrepreneurs will get a chance to show their worth as managers," he said. The APTMA Chief also welcomed the concession offered to the ailing textile industry by reducing the rates of import-duties on synthetic fibre and its raw matelial. He hoped that this measure would go a long way in providing an alternative input to the textile mills. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950611 ------------------------------------------------------------------------ +++The Business and Financial Week ------------------------------------------------------------------------ +++THE premier group is to set up the fist hdypropylene production factory having a capacity of 150,000 mt per annum, located along the coastline at estimated cost of Rs 4 billion. +++THE EPB in collaboration with PCMEA will hold the fifth International Carpet show by end of September 95, at a cost of Rs 13 million, half of which will be borne by the EPB. +++CONSTRUCTION work on the 350 mw thermal power plant to be built by Fauji Foundation has commenced. It will deliver power to KESC by November 1997. +++THE IFC has signed its first risk management facility in Pakistan with D.G. Khan Cement Company with an exposure totalling $10 million. +++KESC is to purchase 206 mw of electricity from ABB Tri Star Energy venture, a steam power plant coming up in the Pvt sector. +++THE PPIB has given the nod to Gordon Wu to set up two 600 mw thermal power projects worth $1.3 billion in Keti Bandar instead of Thar. +++OGDC struck oil worth 33,000 bpd, enough to meet half of the nation's needs at Oil field, about 100 km south of Islamabad. +++PTC plans to invest Rs 5 billion to facilitate its consumers through latest technology and all-round service improvement in the next fiscal year. +++PAKISTAN has shipped the first passenger car radial tyres to Kuwait and the shipment to Dubai will follow soon. +++THE Cotton Export Corporation will start releasing cotton imported *from the CIS on a no profit no loss basis from June 95. All running mills of Pakistan will be eligible for the same. +++PAKISTAN National Economic Council has set a 6.5 per cent growth target for fiscal 1995-96 compared to their year's 4.7 per cent. +++THE Chairman of Pakistan Banking Council has said that a high powered committee for the revival of sick units has disposed of 258 case out of 3000 sick units involving loans of RS 14,500 million. +++THE CLA has made credit rating obligatory for all companies which issue TFCs. +++TRADERS and manufacturers have expressed resentment over the proposed increase in octroi rates by the KMC in the range of 100 to as much as 450 per cent for machinery and raw material. +++SWAT ceramics has been formally handed over to Imperial Group which successfully bid for the their industrial unit when it was first put up for auction. +++THE Collectorate of Customs, Exports, is expected to earn Rs 500 million from the clearance of goods banned for import under the ATT. +++TAIWAN too is contemplating on levying anti-dumping duty on Pakistani yarn exports. +++AFTER the fresh deal for the export of rice with Iran, the earnings *from this commodity during the current fiscal year may cross $400 million. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. This month in Herald 1) Who's Afraid of Imran Khan ? A Herald special report on Imran Khan's journey into the uncharted waters of pressure group politics... plus exclusive interviews with Imran Khan Sarfaraz Nawaz General Hameed Gul 2) The Empire Strikes Back The crisis in Chechnya and the Russian connection 3) Roadblocks on the Information Highway A look at how the country's entry into the rank of interacting nations is being hampered by short-sighted government policies.... ...and of course, much, much more..... Subscribe to Herald and get the whole story. Annual Subscription Rates : North America & Australasia US$ 72 Rs. 2,088 Africa, East Asia Europe & UK US$ 60 Rs. 1,656 Middle East, Indian Sub-Continent & CAS US$ 45 Rs. 1,200 Latin America & Caribbean US$ 90 Rs. 2,520 Please send the following information : Name, Postal Address, Telephone, Fax, e-mail address, and old subscription number (where applicable). Payments (payable to Herald) can be by crossed cheque ( for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). Allow 45 days for first issue. Send payments and subscriber information to : G.M Circulation, The Herald P.O.Box 3740, Karachi, Pakistan DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ===================================================================

EDITORIALS & FEATURES

950609 ------------------------------------------------------------------------
The 'chicken or egg' discussion on Karachi ------------------------------------------------------------------------ *From M. Ziauddin ISLAMABAD, June 8: The other day I had a long drawn 'chicken or egg' discussion on Karachi with PPP's newly appointed acting information secretary, former law minister Iqbal Haider who is also a well known human rights activist. The discussion was more of a monologue, because the Senator from Karachi had come to the Dawn office in Islamabad seemingly with the sole purpose of getting across his side of the Karachi story which in fact sounded more like a moving appeal for understanding by one who feels as if his case was going by default. He said it was wrong to say that the PPP was not interested in negotiations. Since October 1993, a number of MQM teams have held negotiations with the PPP representatives. The last such round was held in April this year. Some 'intervenes' have also tried to mediate. Meamwhile, several important PPP emissaries have visited Altaf Hussain in London in the last 20 months. The main demands that they have been putting forward in these contacts were: 1. Withdrawal of cases, 2.Urdu speaking governor and 3. Withdrawal of the Army. The Army has been withdrawn and an Urdu speaking Governor has been appointed, but the cases against the MQM leaders cannot be withdrawn because that would amount to interference with the judicial process. In any case if the cases, as claimed by the MQM were false, they have nothing to fear. And if they fear miscarriage of justice, they can invite foreign jurists to attend the trials like the PPP did while 25,000 of its workers and leaders were undergoing trials in as many as 1,06,000 cases after its government was dismissed in 1990. He said the PPP never had any reservations about sharing power with the MQM in the province. Neither was there any dispute over the choice of ministries. And it was in complete good faith that we went to them for votes in the Presidential elections. Iqbal felt very strongly about the press criticism against PPP government for not holding local bodies elections in Karachi. He said it was wrong to say that his party was denying the MQM its mandate in urban Sindh. MQM has held power in Karachi for much longer than the PPP. After winning the local bodies elections in 1987, the MQM remained in power in Karachi until June 1992. In between it was a PPP partner in the province for nine months after the 1988 elections and then the partner of Jam Sadiq from August 1990 till his death and then, it was in coalition with Muzzafar Hussain Shah until June 1992. Its local body term in urban Sindh had expired in 1991 but, no fresh elections were held until these were dissolved by the army in 1992. He said it was the MQM which ditched the PPP in September 1989 just before the no-confidence motion against the PPP PM was tabled on October 24, 1989. They left the PPP on the grounds that the Karachi Accord signed between the two parties on December 22, 1988 was not honoured. "But tell me which government can accomplish a miracle like that within nine months. We didn't even have time to implement major parts of our own manifesto, although we had remained in power for 20 months," the senator argued. He recalled that the December 22, 1988 Karachi Accord was signed with the MQM when the ethnic party was continuing its mayhem against PSF and PPP workers. He implied that the PPP had learnt its lesson and would not consider entering into any such arrangement anew with the MQM so long as it did not repudiate violence and terrorist activities. He said when the PPP government was dismissed in August 1990 every one knew what was in store for its members and leaders. But nobody went underground. We believed in our innocence and faced all the tribulations bravely. But by going underground following the Army operation of June 16, 1992, the MQM has indirectly admitted its guilt. But then, in the larger national interest and for a grand reconciliation the government could be persuaded to declare general amnesty after this judicial process is completed. He said the actual miseries of Karachi and deprivation of Mohajirs started with the ascendancy of MQM. According to him the Mohajirs had fair representation in the armed forces, judiciary, bureaucracy, nationalised sector etc. And even in political parties, most of the second and third ranking positions were being held by the Mohajirs. But all this changed with the advent of MQM and now, he claimed, the ethnic party has pushed the others so far as to force them to start discriminating against mohajirs on the basis of ethnicity. And he also disagreed with the MQM claim that it represented the middle classes, pointing out that the Party's sole criteria for awarding tickets had been only one -absolute loyalty to ethnic philosophy. Contrasting Lyari with Lalukhet, he said if the cause of violence is deprivation then there should have been more violence in Lyari rather than in Lalukhet which is certainly better off than the former in all aspects. Referring to the issue of quota in government jobs, Senator Iqbal said that his Party was contemplating moving suitable amendment in the proposed law to accord Karachi a quota of jobs commensurate with its population which according to 1981 census would be 9-10 per cent at the national level and 40 to 50 per cent at the provincial level. In any case, he said as of today their is no quota system functioning in the country as the relevant law had expired at the end of 20 years in August 1993. Anybody can go to the court of law if he felt he was being discriminated against in government jobs under the pretence of the non- existent quota system. He said the PPP was prepared to hold local bodies elections in urban Sindh, if the MQM were to announce 'cease-fire', and renounce violence. "We would like them to cooperate with us in conducting the census in the province, updating the voters list and finally help the government in reconstituting the constituencies to re-enfranchise the disenfranchised poorer, rural population living in the suburbs of urban Sindh. Then alone the local bodies elections could be held in peace and without passions running high," he suggested. He requested the Press and politicians not to draw parallels with Tamil Tigers of Sri Lanka or the Mukti Bahini of former East Pakistan while discussing MQM. He appealed to the Karachiites to discriminate between what is good for them and what is bad, between violence and peace, between prosperity and privation. He said the 'silent majority' of Karachi was not in agreement with the MQM philosophy. When I pointed out to him a number of contradictions in his own party's approach to the Karachi issue, he had a difficult time disagreeing with me. On the other hand when I questioned one of the claims made by the government on Karachi Package, he blamed the frequent strikes and shortouts for the delays in completing these development schemes. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950609 ------------------------------------------------------------------------ Contempt of court ------------------------------------------------------------------------ By Ardeshir Cowasjee THE matter of contempt involving the written word has, obviously, generated much interest in the Press, the second-most important mass media of the country. The government-controlled television and radio have also covered the case and reported on it. Unfortunately, neither media has trained experienced court reporters. Press reports have confused the lay-mind, as has been brought home to me by the number of calls I have had seeking clarification. Masroor Ahsan, a PPP candidate, was defeated in the 1993 elections when he stood from NA 194 (Karachi West). Mian Ejaz Shafi, the PML (N) candidate, was declared elected and Masroor Ahsan then filed various petitions before the Election Commission and in the courts challenging the result. Masroor was mentioned in my Friday column of November 25, 1994. He petitioned the Supreme Court and informed it that the Editor of Dawn, its printer and publisher, and I had committed contempt of court and prayed that we be punished. To clarify, in legal parlance, Masroor is termed the Relater who has laid the information before the court, which took cognisance and issued a notice. The matter was first heard in Islamabad on April 11 and was adjourned after notice was issued to the Attorney-General. It came up again for hearing in Islamabad on June 4 before a bench comprising Chief Justice Sajjad Ali Shah, Justices Ajmal Mian, Manzoor Hussain Sial, Munir Khan, and Mir Hazar Khan Khoso. The proceedings began by the court taking notice of the absence of the Editor of Dawn. The court was informed that he was unwell and was hospitalised. On this, Justice Munir Khan asked whether the case could proceed in his absence. He observed that contempt proceedings were criminal in nature and could only proceed if, in the presence of the accused, a charge was framed. Raja Anwar, counsel for the Relater, argued to the same effect. Justice Munir also asked certain questions: 1) Whether after the issuing of notice under Section 7 of the Contempt of Court Act, 1976, the alleged contemner could be called an accused or a respondent. 2) Whether the Code of Criminal Procedure applies to contempt proceedings. 3) Whether for an offence under Section 4 of the Contempt of Court Act bailable or non-bailable warrants could be issued. 4) Whether the contemner could be kept in jail as an undertrial prisoner during the tendency of the proceedings. 5) Whether proceedings could be held in the absence of the contemner? 6) Whether counsel for an absentee contemner can appear and plead on his behalf? The Chief Justice observed that in some cases it has been held that unless an apology was tendered by the alleged contemner the court may have no alternative but to frame a charge. For this the presence of the Editor may be necessary. My counsel, Edmund Sharifuddin Pirzada-Burke then proceeded to assist the court on four points. Contempt proceedings are neither civil nor criminal in nature, and though they do partake of the character of both, they are in fact sui generis. Under the provisions of the Contempt of Court Act and the Supreme Court Rules, the question of an apology can only arise after the court has decided that contempt has been committed. The question of framing a charge does not arise as there is no provision for such procedure. And, notice having now been issued to the Attorney General who was present in court, it is he who has to conduct the case and not the counsel for the Relater. Having made his point, our Edmund Burke sat through the two hours' proceedings listening intently, taking notes, and, at the appropriate occasion, nodding his head. On the important question of the Editor's absence, his counsel, Barrister Khalid Anwer (Cicero to his friends) then rose. He endorsed and elaborated on Sharifuddin's statement as to the sui generis nature of contempt proceedings and further argued that Section 7 of the Contempt of Court Act, 1976, lays down two conditions precedent without compliance of which the court could not proceed. Firstly, the court had to be satisfied about the alleged contempt and it had to come to a conclusion that proceedings should be initiated. Once these two conditions were fulfilled the court had to then pass an order in terms of which the alleged contemner was required to appear. This order was to contain the substance of the charge. It was emphasised that all of the above steps were to be taken in the absence of the alleged contemner. The procedure contemplated under Section 7 was, therefore, sui generis, and telescoped the normal procedural steps otherwise contemplated in criminal cases. In these circumstances, he argued, it was not necessary for a charge to be framed, and the presence of the alleged contemner could be dispensed with. It was also pointed out by Khalid Anwer that Section 7 contained no reference to an apology. On the observation of the CJ that if an apology was tendered show cause notice could be discharged and no charge need be framed, Khalid said that since tendering an apology was not mentioned in Section 7, the court had the power to discharge the show cause notice without an apology if it came to the conclusion that there was no substance in the petition. Moreover, Masroor Ahsan was a member of a political party and the petition filed was not that of a disinterested person. Thereafter the third stalwart Barrister Makhdoom Ali Khan, counsel for the printer and publisher, did not feel it necessary to add anything. Ajmal Mian, at the commencement of the proceedings asked what specific facts in the article were alleged to be incorrect, and observed that the petition was vague. He asked counsel for the Relater and Attorney General Qazi Jameel for an answer, but none was given. He also observed that the notice issued to the alleged contemners was defective in that it did not specify the exact portions of the article alleged to be contemptuous. The CJ then asked the A-G to read out the article, in its entirety, to the Court, which the A-G did. After he had done so, Ajmal Mian, asked again which portions were incorrect or inaccurate. The CJ also inquired of the A-G as to which paragraphs he found contemptuous. The A-G replied that he had received notice only the previous day. At that stage the court recessed. After it reassembled the CJ observed that important legal points as to whether or not it was essential to, frame a charge, at what stage an apology (if any) has to be tendered, and whether or not the presence of the contemner was necessary had to be gone into. He suggested that both sides carry out research into case law, and adjourned the matter to a date to be fixed after the court vacations. Thus ended that day's hearing. Now a word for the Courthouse and Islamabad. Although the Supreme Court building has not been completed or built as planned by the most famous post WW2 Japanese architect, Kenzo Tange, what stands is impressive. On its left is the National Assembly building and the President's House designed by Edward Stone. On its right is being built the pseudo-Sher Shah Suri-style structure which is to house the Prime Minister's secretariat. Blame for this incongruous structure must be laid fairly and squarely upon Nawaz's shoulders. He had no business to mar the architectural cohesion of Constitution Avenue. The courtrooms are well designed, the air-conditioning and the sound system operate perfectly. Our case was heard in the Chief Justice's courtroom, which was filled to capacity and the considerate CJ ordered that extra chairs be brought in. Apart from mediamen and friends, by accident or by design there were at the same time present in the courtoom five former attorneys-general of Pakistan-Sharifuddin Pirzada, Yahya Bakhtiar, Aziz Munshi, Sardar Khan, and Fakhruddin Ebrahim. No politician in power in Islamabad seems at all concerned about how Karachi is being hurt. We have been struck by a "minor insurgency," pronounced our latest Governor from Islamabad the other day. He will doubtlessly emulate our Chief Minister and spend most of his time in the capital. Islamabad itself is restful, peaceful, noiseless, clean, unpolluted, beautiful, well laid-out and green. We must remain grateful to Generals Ayub Khan, Azam Khan and Yahya Khan, and to town-planner Doxiades, for choosing such a perfect location for our capital on the Potohar Plateau. Our contempt case will now be heard during the autumn, in far more pleasant weather, when the leaves are falling. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950612 ------------------------------------------------------------------- Dateline Washington : A blueprint Pakistan cannot ignore ------------------------------------------------------------------- Shaheen Sehbai A comprehensive blueprint of how and in which direction future relations between Pakistan and the United States would, or should move, is circulating in Washington's three main centres of power the White House, the Senate and the House of Representatives and many believe that there may not be a better practical alternative. President Clinton has acknowledged it, the Senate Foreign Relations Committee has adopted some of its proposals, Senator Larry Pressler agrees with most of it and the House of Representatives may not find a better "staged roadmap" to put U.S. Pakistan relations back on track, its sponsors claim. It has been put forward by some influential Pakistani-Americans in the form of a confidential memorandum which takes into account the pressing security and defence requirements of Islamabad as well as provides Washington a framework to achieve its own goals. The fine print, however, needs a deeper study. The man behind the whole idea is a 34-year old American of Pakistani origin, MIT and Harvard educated mechanical engineer turned nuclear physicist turned investment consultant who was introduced to Prime Minister Benazir Bhutto by a senior Pakistani diplomat in Washington as "the silent billionaire". Mansoor Ijaz runs a billion dollar investment management firm, claims he dines with President Clinton, is a Managing Trustee of the Democratic Party's National Committee and a Majority Trust Member of the Democratic Senatorial Campaign Committee, says he makes heavy donations which do move things for him on the Hill, produces a stack of letters written by almost anyone who is someone on the Capitol Hill, and boasts of his business connections outside the U.S. He is adviser to Nelson Mandela's South Africa, manages investments for many other countries and maintains three homes in New York, Toronto and Paris. His credentials are impressive and CNN and the Dow Jones Business and Financial Weekly "Barron's" provide him international media recognition by interviewing him on investment matters repeatedly. He and his other friends, in similar well placed position, say they have laid the ground work for the changes that have started to show in the U.S. policy towards Pakistan (meaning others were just paying lip service) and they have been at this job eversince the Pressler sanctions were imposed. Their claims are hard to be accepted or rejected at their face value but what has actually taken place in favour of Pakistan including the change of heart in the White House, the sympathetic mood of the Senate and the bipartisan support for an even-handed policy in South Asia, was originally outlined in Mansoor Ijaz's confidential blueprint. That gives his claims a bit more credibility that any Pakistani Government official would make us believe. But this also rings many warning bells as the rest of his plan has some serious implications for Pakistan and its security. Mansoor minces no words in stating that Pakistan and the United States will have to enter into a wider security arrangement in which Washington would have to provide the security umbrella and Pakistan would safeguard the interests of the west in that region as strategically Islamabad is now the only country with which the Americans could have an alliance to check fundamentalism and international terrorism. "Yes what I mean is that the Americans have to be given bases to operate in that part of the world, because they cannot always remain onboard their air craft carriers," he argued with cold logic in a two hour discussion last week. His blue print suggests the same thing in camouflaged language, speaking of "strategic military cooperation" between the two countries. His words may have been taken by me as a routine boast of a well-placed Pakistani, many of whom are in the habit of exaggerating things to incredible limits, just to impress others about their reach and influence. But his words instantly reminded me of an important Congressman of the Democratic Party, David Bonior, who in a speech to the Pakistani American Congress, just a few days back talked of "common defence" between Pakistan and U.S. He had done so when the Ambassador of Pakistan, all other senior diplomats and many prominent Pakistanis were present and no one had questioned him. Ijaz's blueprint suggested modifications to the Pressler Amendment in three stages because easing the sanctions was "in the best national security interests of the United States and no one was interested in allowing Pakistan to fall under partial or complete control of the Iranians." These three stages were restoration of economic assistance, including OPIC, TDA and IMET in the first stage, allowing "non-control list" military spare parts and return of spare parts Pakistan had already paid for, increased military training and cooperation on anti-drug trafficking in stage two and going for strategic military cooperation in the third stage. No conditions were to be attached to the first two stages while the third stage had a hidden agenda, of roping in Pakistan's nuclear programme into the NPT net, if not directly by forcing Pakistan to sign the NPT, by persuading it to sign other international treaties like the Fissile Material Cutoff Treaty (FMCT) or asking Islamabad to comply with the requirements of the Missile Technology Control Regime (MTCR). The Senate Foreign Relations Committee and the House of Representatives have already approved the first two stages which would open economic assistance to Pakistan, reinstate OPIC cover for U.S. businesses, restore TDA paradigms and revive the military education and training programme (IMET) between the military establishments of the two countries. The blueprint had suggested there concessions in two stages but Ijaz says the Congress was in such a hurry that both the stages were crossed in one go. The argument he had put forward was that on these two stages there was a consensus that they were in the interest of the United States. His line of thought on restoring IMET was interesting. "For Pakistan the objective was clear: They need officer training and they want it from the best in the world. For its strategic long- term interests America can use the IMET forum to encourage the moderate elements in Pakistan's military (non-nuclear hawks and doves and non-religious extremists) to rise to the top ranks and thereby know intimately the type of minds that are controlling the panic button...." "American military training will be a step towards containment of 'mullaism' and other forms of extremism as the educational paradigms of Pakistani military," the blueprint argued. "There is also a growing feeling among moderate Pakistani military strategists that if the U.S. wants to see more effective containment of inappropriate Iranian behaviour, America needs to cast a life raft to the Pakistani military-a military that is in essence 'out of shape' to properly withstand the current Iranian offensive," it said. "Military training and spare parts will relieve sufficiently the hawkish pressure on Benazir Bhutto to ask for 'all or none' terms on Pressler modification. It will also get her to the next election date without damaging no confidence motions in Parliament by Nawaz Sharif (a decided nuclear hawk) and give us sufficient time to evaluate the stability of Pakistan's economy, military and politics before engaging in more strategic arms equipment contracts," it argued. For these two stages, Pakistan was supposed to continue cooperation in U.N. peacekeeping missions as well as in other field like checking international terrorism drug trafficking, heroin production, illegal immigration and counterfeit money production, besides reporting tangible progress on existing and outstanding human rights and democracy issues. The third stage of the blue print was the crucial part and though the first two stages have already begun to be implemented, implementation of the last stage could bring in a lot more trouble than anticipated. This stage envisages a "broad range of possibilities, from 'control list' spare parts to strategic armaments that have non- nuclear capable characteristics, to consideration under appropriate conditionality of strategic weaponry that would serve U.S. national security objectives.." It said the time frame of this stage would depend on two critical issues. "First our conditionality on strategic military cooperation that Pakistan be a signatory to the successful negotiation of the FMCT for which the time frame of end of 1995 and early 1996 is indicated. Secondly, and in conjunction with the first issue, will be Pakistan taking tangible steps towards meeting the requirements of the MTCR including progress on the M-11 issue." The conditions stated in the blueprint are clear: Pakistan's inclusion in FMCT which means accepting verifications of the nuclear programme without actually signing the NPT. "FMCT is an elegant roadmap that achieves the most critical non-proliferation objectives of the U.S. within the existing framework of the NPT, without compromising the internal political sensitivities of the non-declared nuclear states," it says. The final proposal of the blueprint is after these three stages are crossed. It proposes that the President of the United States be given the flexibility, under the Pressler Amendment, to certify that the "proposed U.S. military assistance programme will reduce significantly the likelihood of the proliferation of weapons of mass destruction and their ballistic missile delivery systems." Ijaz explains that by including an "or" instead of an "and" in the Pressler Amendment, the President will be able to certify that in his view whatever military assistance was being provided to Pakistan would not help in its nuclear proliferation goals. "I can tell you that this blueprint is what meets the United States parameters of re writing the Pressler Amendment and it would be done on these lines, come what may. It has already begun to be implemented," he strongly argues brushing aside any other ideas that the Government of Pakistan or its Embassy in Washington may be floating. He says Pakistan should get its money back, keep the money in an escrow account, wait for the President to get the new certification powers and then negotiate the F-16 deal which would then be possible without any congressional interference. Whatever the reaction of the U.S. authorities on these plans and proposals, at least President Clinton acknowledges them. On May 26 Clinton wrote to Ijaz: "Dear Mansoor, Thank You for your letter regarding Pakistan and for your comments about my meeting with Prime Minister Bhutto. I welcome your input on this important matter." Said Clinton: "We need to continue working on ways to solve the difficulties that derive from the Pressler Amendment and the sanctions that have been in place since 1990. I informed the Prime Minister that I was prepared to seek relief from the sanctions and that we would explore our options for return of the F-16s and equipment or of the money that Pakistan paid for U.S. equipment before the sanctions went into effect. I will continue to work with Congress on this important issue. "I appreciate knowing your perspective, and I'am glad you took time to write," Sincerely, Bill Clinton. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ Rays of light ------------------------------------------------------------------------ By Kunwar Idris KARACHI: In the last few days slender rays of light have appeared on Karachi's dark horizon. The first and the brightest is the prime minister's declaration that she had never declined and was still prepared to talk to Mohajir Qaumi Movement (MQM). Then came the postponement of the dreaded protest and Altaf Hussain's interview to BBC World Service that he wanted cooperation not confrontation with the party in power. The Sindh chief minister's stern posture toward the MQM has also considerably mellowed following his leader's line. The interior minister's denial of any plan to launch a large-scale operation against terrorists in since has also eased the grim forebodings a little. The wheel of death yet grinds on. Particularly gruesome and senseless has been the murder of five policemen drowning their fatigue of long vigil on a house-top in a wayside cup of tea. No crime could lend more credence than this one to apprehension that whatever the internal differences, the enemy agents remain at work to exacerbate them. Having failed to provoke religious rights by murderous attacks on the places of worship, the mercenaries now appear bent on giving the government-MQM conflict an ethnic twist. The five constables were here on a subsistent wage to keep hearths warm back in their villages. When their bodies arrive in boxes murdered by the Mohajirs (as all would be inclined to believe) the natural human instincts of grief and anger will give way to an equally natural instinct of revenge. Their surviving colleagues would hit back harder. The stage of conflict thus might become bloodier and its stage widened from Karachi to Sindh and on to the whole country. What so far has been a clash between the Authority and the Mohajirs might engulf all the ethnic communities. It is not conjuring up an unfounded fear. It has happened in similar circumstances here in the city and in this province not long ago. Now with the agent provocateurs on the look out to stoke the fire, the conflict could become wider, more hideous. The opportunity created by the conciliatory statements, therefore, should be grasped to start a dialogue. For that a broker is needed who has no vested interest in the political instability and is fully trusted by the contending parties. Search for a broker should be launched before the conciliatory atmosphere is dissipated and threats are renewed. It would not be easy to find one. When the new governor was named a thought occurred to some that he could be the one. By joining the chorus of statements before studying the situation from his new perspective, he has chosen to be a party loyalist rather than a constitutional head. That is the province's misfortune. Not the first it has suffered ever since it was caught in a vise of political ineptitude and subversion. The governor should have realised that the chief minister and a score of his ministers, advisors and special assistants were more than enough to take care of the party's interest. The agenda for the talks can be framed in a meeting with the MQM leaders who are in the country free or can be bailed out (this is with moderate Farooq Sattar in mind). Once the agenda is on the table, the level of participation and how it is to be facilitated can be decided. The agenda need not be contentious. Neither party should have objection to a package somewhat like that: -The pattern of Karachi's civil and municipal administration which meets the demands of the situation as well as the aspiration of the people. -The method and time-frame for giving MQM and other parties representation, in proportion to their popular support, in the federal legislature and in municipal councils. -Equitable representation to all communities in posts in the provincial services and public sector. -Checks on the elected municipal bodies from becoming instruments of favouritism and enriching party coffers. In chalking out and debating the agenda it must not be forgotten by the participants and hapless observers that 12 million people from all parts of the country crammed into a bursting, decaying city can survive only by tolerance and charity not by intimidation or coercion. If Altaf Hussain insists on a "Mohajir Nation" as he repeatedly and emphatically did in his BBC interview, the roots of such a nation would not lie in this soil. If Punjab also speaks of being a nation, its cohorts would be across the border a crow's flight and not a thousand miles away in Karachi. All dialogue must proceed from this incontrovertible basis that whatever the language spoken, belief professed, area inhabited or howsoever wronged, Pakistan is one indivisible nation, now and for ever. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950612 ------------------------------------------------------------------- *From press gallery : A nice gesture, through belated ------------------------------------------------------------------- Nasir Malick ISLAMABAD: It was after a very long time that the ruling and opposition members were seen mixing with each other, cutting jokes and listening to the speakers with patience during the Charar Sharif debate in the National Assembly, perhaps because the enemy was common-India. The scene reminded me of the speech made by Azad Kashmir Prime Minister Sardar Abdul Qayyum during the joint session of the Azad Kashmir Legislative Assembly and Azad Jammu and Kashmir Council last month in which he had said destruction apart, the Charar Sharif incident had brought with it the blessings of the saint as the entire nation has been united on this issue. In spite of the boycott, which the opposition staged in haste on the first day of the debate, it supported the government on this national issue and the assembly passed a unanimous resolution sending a strong signal to the international community that the nation is united on Kashmir issue. The government also accepted the amendments moved by the opposition in the original substantive resolution and showed grace by asking the deputy opposition leader Gohar Ayub to move the amended resolution in the house. Political statements aside, today's show amply proved that the government and the opposition parties have the same stand on all issues be it nuclear programme, F-16 issue, Kashmir issue, privatisation or de- regulation of economy. The tools may be different but the end objective is the same. The congenial atmosphere prevailing in the assembly hall had a soothing affect at least for the regular visitors to the galleries who must have been longing to see the good old days when politics was a sober profession. And if Sardar Qayyum was right, if it was also the blessings of the great saint in Charar Sharif. If Foreign Minister Sardar Assef Ahmad Ali was seen sitting with Mir Zafarullah Jamali, so was Sialkot's Khwaja Assef enjoying the company of his old school and college fellow Ghazanfar Gul. The two Aitchisonians are old friends but sitting on the opposite sides. At one table Federal Minister Khurshid Shah and deputy Law Minister Raza Rabbani were busy chatting with deputy opposition leader Gohar Ayub while opposition member Mian Waheed was seen gossiping with Petroleum Minister Anwar Saifullah. As soon as Sardar Assef Ahmad Ali started his speech to wind up the debate, Prime Minister Benazir Bhutto, who was sitting in her chamber rushed to the hall, a gesture to show that how much importance the government gives to Kashmir issue. She remained busy taking notes (or was doing some file work?) and at times thumped the desk. Assef speech was a fine blend of government's firm commitment to solve the Kashmir issue through a dialogue and not to bow before Indian hegemony Assef's speeches in the National Assembly are still remembered and he proved his oratory skills once again today. Instead of delivering a prepared speech, Assef Ahmad Ali spoke extempore and proved that he was not only well verse with the whole issue but has the capability to plead and fight Pakistan's case at any international forum. The presence of Prime Minister in the house has always a positive effect on the members of the ruling party who remained glued to their seats throughout the debate. Not a single member of the PPP went outside the hall, perhaps an exercise for the forthcoming budget debate when members should remain in the house to pre-empt any opposition move to embarrass the government. Their absence from the cafeteria is only felt by columnists who are deprived of juicy pieces of information and inside stories. At least today they were desperately looking for some one who could tell them more details about the recently-held CEC meeting of the ruling Pakistan People's Party where Interior Minister briefed the members about the "links of opposition leader Nawaz Sharif with Ramzi Yousaf, the man involved in the bombing of World Trade Centre in New York. Opposition members are taking it as a hint that he might be arrested after the budget to pre-empt any movement which the PML is planning to launch. Whenever there is any effort of rapprochement between the government and the opposition, it is always the Interior Minister who suddenly comes out with something scandalous or sensational against the opposition and washes away the efforts of the doves. When the assembly unanimously passed the resolution tabled by the deputy opposition leader, Prime Minister Benazir walked up to him and apparently thanked him for tabling the motion. Elsewhere the appointment of a governor in Punjab is still one of the major issues which the government is facing and not a day passes when the prime minister does not preside a meeting for this purpose. On her dining table in her assembly chamber today were Senior Punjab Minister Makhdoom Altaf, PPP Punjab President Mushtaq Awan, former Punjab Minister Ghulam Mustafa Khar and Faisal Saleh Hayat. Senator Aitzaz Ahsan was also present in the cafeteria, though in his professional suit, to assure the reporters that he is not taking this issue too seriously. "I am here for a five year term (which one can be never sure of if he is a Governor) and practising at Supreme Court." Asked pointedly whether it meant that he was not a candidate for Governorship, he said: "I am not answering your question." Naturally no one is ready to lay a trap for himself and as a good lawyer he kept his options open though Mustafa Khar is apparently emerging a more strong candidate and his seat is always a secured seat. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950613 ------------------------------------------------------------------- Both have skeletons in their cupboards ------------------------------------------------------------------- ISLAMABAD: The opposition Pakistan Muslim League must have been regretting its decision to call for a debate on co-operatives scandal knowing fully well about the number of skeletons it has in its cupboard. And when the debate started, skeletons started falling from the cupboards on the both sides. If Sharif, Shujaat, Parvez Illahi and other PML members are responsible for taking huge loans from cooperative societies, causing their collapse, the ruling party also has members like Senator Gulzar and Rana Shaukat who had quenched their thirst from the running stream. The only difference is that at that time the people now sitting on the opposition benches were the ruling elite and managed to repay the loans by borrowing from banks. But people like Senator Gulzar and Rana Shaukat were Luckier as they were sitting in the opposition and escaped the attention of the people. Those who had not taken any loan from the collapsed cooperative societies were also cursing themselves for having missed such a golden opportunity as after today's debate, nobody has any doubt that those responsible for eating up billions of rupees of widows and pensioners would go scot-free. The two sides lacked sincerity and the debate was no more than a point- scoring game where no one talked about the sufferers. People have been hearing the government claims that they would receive every penny from those who have looted the money since the day the PPP government was voted into power but the victims have not been provided any relief so far. The same assurance sounded hollow when it was again held out by Agriculture Minister Yusuf Talpur today. His offer to pass a unanimous law to recover the cooperative loans was immediately accepted by the opposition members and he had to add another clause to his offer that all the directors of the defaulting finance companies should also be booked. This time there was no response from the opposition as that would have meant arrest of many members of the Shujaat family. Opposition member Khwaja Assef was not wrong when he accused the ruling party of exploiting the sympathies of the cooperative victims during the election campaign. The cooperative debate was also one of the topics of discussion among the treasury and opposition members when they came for "Namaz" break, for a few, and tea break, for many. A treasury member was vehemently defending Senator Gulzar and Rana Shaukat Mahmood. He questioned how in the first place these loans were issued to these two people, one of whom (Rana Shaukat) was leader of the opposition in the Punjab Assembly while the second (Senator Gulzar) had been receiving and garlanding Nawaz Sharif at Dera Ghazi Khan airport. He said it was Nawaz Sharif who patronised the "PPP thieves". "If we are not taking any action against them, it is nothing unusual. It's a natural instinct that you protect your own people but tell me why Sharif failed to take any action against them, particularly when these two people were in the opposition at that time," he asked a Muslim Leaguer. Agriculture Minister Yusuf Talpur had also taken refuge behind the law when he was referred to Senator Gulzar saying that the case was already before the Liquidation Commission. If laws can be promulgated for terrorists, can't the assembly legislate these "fiscal terrorists" who had been looting the people in the form of finance companies and cooperative societies? Talpur informed the assembly that there were 400 people who have taken loans of Rs 1 million or more from the cooperative societies and have not yet paid them back. What he did not spell out was what action the government was taking against them? Although the level of the debate fell short of what is expected of members sitting in these august houses, it was surprising that the debate was held in a relatively peaceful atmosphere. "I have seen debates in many parliaments of developed countries and they are as boring as debates here on Kashmir, Charar Sharief or cooperative scam," one senior journalist was telling his colleagues. "I feel such (boring) debate is an indicator that democracy is strengthening in this country," he said. But opposition member Khwaja Assef though admits that the level of debate is far from satisfactory, he says it is a reflection of society in the parliament. I could not make out whether it was also true of their election? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950612 ------------------------------------------------------------------- No alternative to talks ------------------------------------------------------------------- ANY optimism about the prospect of an early start of a process of conciliation between the MQM and the government over the Karachi situation may still be somewhat premature and unrealistic. However, MQM chief Altaf Hussain's decision to postpone his party's protest campaign against Prime Minister Benazir Bhutto's controversial remarks in her speech in Kasur should lead to some easing of tensions. Hopefully, this would also give both sides the breathing time to take a hard and appraising look at their highly polarised positions and their implications for Karachi and the country as a whole. The city could wish for nothing more than an end to the cycle of terror and violence which has taken a toll of about 600 lives since the beginning of the year. To add to the people's apprehensions, Karachi has been in the grip of rumours of further escalation in turmoil and strife after the expiry of the deadline set by the MQM chief for the launching of the protest campaign. Over the weekend, at least 14 persons, including five policemen, were killed as a result of sniping and targeted attacks in Surjani Town and the residents several colonies spent sleepless nights apprehending serious trouble. While announcing the postponement, Mr Altaf Hussain has not been very explicit but he appears to believe that certain political developments in Pakistan favoured putting off the protest campaign for the present. He has also expressed the hope that leaders of various segments of society, including army generals, and political and religious leaders, would use their good offices to bring about a change in the government's attitude and press for the recognition of the political and economic rights of the Mohajir community. In an interview to BBC, the Sindh chief minister, Syed Abdullah Shah, also indicated that he wanted an end to the present state of confrontation and invited the MQM to nominate its representatives for talks with the government. Quite understandably, he would want the MQM negotiators to be duly empowered to take decisions on the basis of the outcome of talks, contending that this had not been the case in the past. Of late, tentative moves at various levels appear to be under way to nudge the PPP and the MQM from their deeply antagonistic and irreconcilable positions on the Karachi situation. Claiming that the MQM is the sole representative political party of the Mohajir community, Mr Altaf Hussain has strongly resented his party being labelled as a terrorist outfit by the government. He has even accused the authorities of actively siding with the Haqiqi faction of the MQM and in doing so, instigating a 'civil war' like situation in the city. The government, on its part, has been holding the MQM responsible for practising the politics of terrorism and violence and called upon it to surrender its arms before any meaningful process of conciliation could be initiated. However, while talking to newsmen in Islamabad the other day Prime Minister Benazir Bhutto called upon the MQM to hold meaningful talks with the government and eschew terrorism. She expressed her government's willingness to enter into negotiations with MQM leaders not specifically charged with terrorist activity. President Farooq Leghari has also hinted at the possibility of negotiations with the MQM with "an open mind" even though he remains opposed to the withdrawal of the charges of a criminal nature against certain MQM leaders. Though by no means definitive, these are hopeful indications of some sober rethinking on both sides and would be worth every bit of attention and interest they occupy if they lead to something more meaningful and concrete. As has often been stated in this space, no serious and sustained effort has yet been made to promote a degree of reconciliation between the MQM and the government in a spirit of give-and-take. Both the MQM and the PPP have tended to look at their differences through the prism of their deep prejudices and the antipathy of their mutual perceptions. The result is that the few tentative moves that have been made from time to time for a rapprochement between the two have not gone beyond the stage of initial probings. Quite clearly, what is needed is a change of attitude and tone, marked by a sincerity of approach on both sides, to break the ice of mutual distrust and create a favourable climate for meaningful and productive negotiations. Both sides must also realise that the present state of affairs poses a serious threat to the political and economic stability of Pakistan and that the situation has reached point where it brooks no further delay or procrastination. Moderation and restraint on one side and magnanimity of spirit on the other can break the icepack of distrust and deep antagonism that is at the root of Karachi's endless suffering and anguish. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950614 ------------------------------------------------------------------------ The state of the economy ------------------------------------------------------------------------ ALTHOUGH many of the targets for 1994-95 remain unmet, the economy, as portrayed in the Economic Survey, has registered improvement on all fronts, except those of prices and large-scale manufacturing. The economy was poised to do much better but the damage to cotton crop and the situation in Karachi, with its psychological impact at home as well as abroad, administered shocks. Suspension of economic activity for seven days throughout Pakistan and for 20 days in Karachi on the calls of businessmen, government, ulema and the MQM disrupted production and supplies. Combined with the lingering effects of the Karachi crisis, this led to the postponement of investment decisions in many cases. Karachi, the only commercial port of the country, remained throughout the year in the grip of terror, keeping the schedules of production and supplies uncertain, affecting the business activity upcountry as well. In addition, decision-making in the government has been painfully slow and at times gave the impression of a drift. For example, decisions on sales tax, businessmen's demands and sugar export lingered on for a considerable time. Despite the failures at the levels of management and law and order, the economy showed remarkable resilience and established its inner strength by growing at 4.7 per cent against last year's 3.8 per cent. However, the target of 6.9 per cent remains way ahead. The tariff reforms (which were supposed to make raw material available at cheaper prices, discourage smuggling and avoid front-loading of new projects), fiscal incentives, credit facilities for sick units, and one- window operation do not seem to have contributed much to the revival of industrial activity and restoration of confidence among the entrepreneurs. Perhaps the time of nine months is too short a period to make the impact of reforms visible. The price situation continues to worry the consumers and the government alike. The 13 per cent price hike, registered during the ten months from July 1994 to April 1995, is three per cent higher than last year's and 85 per cent higher than the target of 7 per cent which the government had aimed at achieving. The acceleration was higher during the first half of the year. At one point the government had admitted that inflation was running at 15 per cent and unofficially it was estimated at 19 per cent. But during the second half of the year, it relented. Professional economists blame the high rate of inflation mainly on official measures like the procurement and administered prices. Any anti-inflationary policy should, therefore, provide some real respite on these counts. On the former, the government has made its intention known-no increases in procurement prices. As to the latter, indications are that electricity and gas prices will rise. How they will affect the general price level remains to be seen. In analysing the constituents of inflation, the cost of frequent suspensions of economic activity has not been taken into account. The main plank of the government's anti-inflationary policy seems to remain demand management through control of money supply and reduction in budgetary deficit. During the current year, while monetary expansion remained within limits, budgetary deficit could not be brought down to the target of 4 per cent, although it is likely to be marginally lower than last year's. The easing of pressure on prices during the second half of the year is evident from the fall in the wholesale price index (WPI) which would take some time to reflect itslef in consumer prices if, in the meantime, some other adverse factors do not intervene. On the external front, the picture is brighter. Both exports and imports exceeded the targets by a comfortable margin, achieving a growth rate of about 17 per cent and establishing a new trend. In this regard, one disconcerting fact is that increases in export earnings are due mainly to a rise in international prices and not because of any significant increase in quantity. A welcome sign, however, is an increase in imports, which mainly constitute capital goods and industrial raw materials. This is indicative of the picking up of industrial activity and investment. Equally encouraging have been the increases, in remittances and direct foreign investment. Inclusive of portfolio investment (PTC included), foreign investment increased significantly by 157.6 per cent; excluding portfolio, it rose by 24.6 per cent. The government's top priority area is the energy sector and the successes here are quite encouraging. In response to the highly attractive incentives, letters of support have been issued for 30 projects for the generation of 7,185 MW of electricity at a cost of 17 billion dollars. In several of these cases, financial close has already been achieved. The village electrification programme is proceeding apace and during the first eight months, 3,801 villages were electrified. In the fields of gas and oil exploration, work on projects worth about 9 billion dollars has already been started. During the year three oil and four gas fields have been discovered by public and private sector agencies. ===================================================================

SPORTS

950613 -------------------------------------------------------------------
Salim Malik's cricket career a question mark ------------------------------------------------------------------- By Our Sports Reporter KARACHI, June 12: The former Pakistan captain Salim Malik may win the battle with the Australian cricketers on charges of offering them bribe during the home series last year but he may lose his claim to regain his place in the national string for the coming season. The reason appears quite simple: he is under a two-Test suspension from the International Cricket Council (ICC). He was fined during the third Test against Zimbabwe early this year when he accused an umpire of doctoring the ball which was being used by the Zimbabweans. The suspension means that he will miss the first two Tests and probably the entire series against the visiting Sri Lankan who are due here in September. With the tour Down Under immediately after the series against Sri Lanka, the prospects of Malik finding his name in the touring party also will be slim for three major reasons: 1-On account of missing the home series against Sri Lanka, his form and fitness would be unknown to the selectors; 2-He himself may be reluctant to tour Australia after Shane Warne and Tim May accused him of offering US $ 50,000 to throw away the Karachi Test. The investigations against the accusations are still going on; The Pakistan Cricket Board (PCB), while announcing its future policies, has clearly stated that it is resolved to root out from Pakistani cricket attitudes and behaviour which are not conducive to team spirit in general and the reputation of Pakistani cricket in particular. The PCB added that will not condone players who are undisciplined and do not have the interests of the country and team at heart. Taking this policy into account, the PCB directed the Selection Committee of Nasimul Ghani to ensure that players who have consistently exhibited such undesirable attitudes and behaviours are not considered for selection. Consequently, when the Selection Committee announced the team for April's Asia Cup in Sharjah, Salim Malik alongwith pals Ijaz Ahmad Senior and Akram Raza found themselves on the chopping block. Though the Selection Committee for the coming 1995-96 season may altogether be a new set, the guidelines for the selectors may remain the same which might result in the sidelining of the trio again. With everything crystal-clear for Salim Malik, the question arises if his career is over? If his is to assist the national conglomerate, how will he stage a comeback to the team? ====================== END DAWN 15 June 1995 ============================

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