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DAWN WIRE SERVICE
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Week Ending : 18 May, 1995 Issue : 01-19
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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.
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
(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1995
CONTENTS
NATIONAL NEWS
Pakistan and USA
..........Move in US Congress : Pakistan may finally get money back
..........Pressler law changes suit Americans
Charar Desecration
..........India's threat : Pakistan will give befitting reply: Assef
..........Charar Shrine Destroyed
..........Pakistan calls for urgent OIC meeting
..........Nation to observe 'Black Day' on 19th
Tenders opened : Barotha plan enters execution phase
Iraq asks Pakistan to settle row with Turkey
Ramzi's accomplice 'arrested'
Mango orchards attacked by black hopper
FM radio, cable TV: a clarification
Kidnapped engineer released
Justice Kharal dies in accident
Body formed to look after historical building
Businessmen 's problems to be solved: PM
Judge told to dispose of Ittefaq case transfer plea
Video phone for next month
The blind want full implementation of job quota
Anti-septic soap Scandal
Iraq's invasion of Kuwait : Pakistanis awarded $ 50m as compensation
BUSINESS & ECONOMICS
Major structural changes effected at three NCBs
Import duty on 33 items cut, sales tax withdrawn
Plan to sell Yellow Cabs to govt officials
Re-exporting yellow cabs SC directive to UBL, FB
Japan to impose, anti-dumping duty on yarn
Local traders to import generator fitted containers
Effort needed to achieve annual target of $7.8bn
Carpet exporters in quandary
Incentives okayed for engineering industry
Australia poised to capture meat market share
Cut in customs duty sought
Govt to lose Rs 15.264m
+++The Business & Financial Week
EDITORIALS & FEATURES
The curse of stagflation By Senator Sartaj Aziz
Dangers of flawed IMF programme By Senator Sartaj Aziz
Charar Sharif sacrilege From Hassan Akhtar
Aftermath of Charar Sharief By M.H. Askari
Bureaucracy & corruption By M.H. Askari
Matrimony and the moralist From Tahir Mirza
A sinister move
Budgeting without convulsions By Sultan Ahmed
In free fall By Mazdak
Empowerment, but not quite
Misuse of bank funds By Sultan Ahmed
SPORTS
Farooq Umar made Olympics mission chief
Imran to marry on June 20 under Islamic tradition
Board giving me a raw deal, says Wasim
Zarak made permanent as a footballer!
Salim Malik innocent until proved guilty: CEO
Latif, Basit don't want to play with Malik
Hasib wants amicable solution to Salim's case
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NATIONAL NEWS
9500517
Move in US Congress : Pakistan may finally get money back
From Shaheen Sehbai
WASHINGTON, May 16: Pakistan crossed a big congressional barrier and
moved a major step forward on Monday night to get itS money back for the
blocked F-16 aircraft when the influential Foreign Relations Committee
sent a bill to the House after approving proposals that the Pressler Law
be changed and the F-16s be sold to a third party.
The Committee, headed by Republican Congressman Benjamin Gilman from New
York, also adopted the legal draft which would be inserted at an
appropriate place in the new budget bill so as to allow the proceeds of
the re-sold F16s to go to Pakistan as well as return of other military
equipment.
Observers said it was the first time that a formal move had been made in
the US Congress to undo the Pressler Amendment substantively and it
could be the way out of the blackhole in which both the United States
and Pakistan have been trapped for the last five years.
The changes in the Pressler Law were moved by Congressman Doug Bereuter
who sought to change section 3303 of the Foreign Assistance Act of 1961
relating to assistance to Pakistan. Bereuter also moved the new section
which spoke of the return of the military equipment to Pakistan. All the
changes were incorporated as amendments in H.R. 1561, the American
Overseas Interests Act.
Congressman Bereuter later told Dawn in an exclusive interview that his
proposals were "a partial reversal of the Pressler Law because it was in
the national interest of the United States."
But, he said improving relationships between Pakistan and the United
States was clearly in the best interest of both the countries. "I think
there are substantial benefits for Pakistan. Just in straight dollar
terms we are at least freeing up equipment that had been here. That
would be the direction (to be taken) we provide our businessmen to
invest in Pakistan and if that was not in Pakistan's interest, they
would not involve themselves."
Asked whether there was any possibility that the proposals may further
be amended when they come up before the full House, Rep Bereuter said:
"I think we have gone as far as we are likely to in the House and this
may come up before the House within a month, before the Appropriations
Bill comes. That is why we are acting fairly rapidly."
To the question whether any further erosion of Pressler Law may be
possible later, after his changes were adopted by Congress, Mr Bereuter
was frank: "Eventually yes but may not be in this Congress. We will see
what happens in Pakistan. Events in Pakistan and activities on anti-
terrorism, narcotics and all of those things will have an impact."
Observers said if the Bereuter proposals were adopted by the House, they
would then go to the Senate and pass through at least seven stages,
including the final signing of the Act by the President of the United
States, before before they became law and were put into effect.
But the general view was that on matters concerning Pakistan, there was
a consensus between the Republican and the Democratic parties as
President Clinton had forcefully come out against the Pressler
sanctions.
The Congress move, Pakistani sources said, would definitely be viewed in
Pakistan as a major success for Prime Minister Benazir Bhutto, but the
catch was that Pakistan may, after all, not receive the money as there
may not be any buyers for the outdated planes that Pakistan ordered some
six years back.
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950514
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Pressler law changes suit Americans
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From Shaheen Sehbai
WASHINGTON, May 13: The long and tortuous judicial process of whittling
down the controversial Pressler Amendment has begun in the US Congress
but so far all the proposed changes favour the Americans alone, the only
consolation for Pakistanis being that the myth of the permanence of the
discriminatory law is, after all, being broken.
The ball has been set into motion by Republican Congressman Bereuter who
heads the important House Sub-committee on International Relations which
was once presided over by Congressman Stephens Solarz.
The proposed changes in simple terms mean that Pakistan would be
eligible for assistance to Non-governmental organisations or NGOs, the
OPIC would be allowed to involve itself in Pakistan, aid for narcotics
control would flow and Pak-US military exercises and training programmes
would continue.
Likewise, the United States would begin providing assistance to Pakistan
in matters relating to international anti-terrorism activities, all
matters concerning aviation safety, immigration and customs procedures,
peacekeeping and promotion of trade and investment interests of the
United States.
"All these matters are basically what the United States wants out of
Pakistan and the core issues of F16s or the refund of Pakistani money
have not been touched in the new proposals," lobbyists for Pakistan say.
In fact a new dimension is being added to Pak-US military exercises and
training and this would be contingent to a certificate by the US
President that the Government of Pakistan "fully cooperated with the US
counter narcotics assistance programmes and policies".
Diplomatic analysts are divided over the utility of the latest move for
Pakistan as some believe that it could block any meaningful changes to
the Pressler Law while others say once the undoing of Pressler begins,
it would then not be difficult to remove the really damaging portions.
Both the sides agree, however, that the Bereuter proposals would be
passed without much debate or controversy in the Foreign Relations
Committee or the House itself because they are geared to help American
business more than really resolve the core issue of blocked F-16
aircraft.
Pakistani officials are bound to claim that the process of doing away
with some parts of the Pressler Law has begun after the visit of Prime
Minister Benazir Bhutto and many in Washington would tend to agree with
them, but the fact remains that unless Pakistan was offered a solution
for the "planes or the money" issue, public Opinion in Pakistan would
not be pacified. Sources, however, say the Bereuter move is independent
of any of the efforts exerted by either Pakistan or the Clinton
Administration to get the thorny issues sorted out. "It is an initiative
by Republicans who believe that Pressler Law was as much damaging for US
interests as for Pakistan and they want it changed, at least those
portions which hurt the US interests," they say.
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950513
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India's threat : Pakistan will give befitting reply: Assef
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From Anjum Niaz
ISLAMABAD, May 12: Pakistan will give a "befitting reply" should India
try to carry its threat of "invading" Azad Kashmir, Foreign Minister
Sardar Assef Ahmed Ali said on Friday while reacting to Indian Minister
for Internal Security Rajesh Pilot's allegations against Islamabad's
hand in the burning of Charar-i-Sharief.
"Mr Rajesh Pilot is in the habit of threatening Pakistan from time to
time and blaming the indigenous insurgency in J&K on us," Sardar Assef
told "Dawn" in an interview. "If India was serious to resolve conflict
and avoid tension, it would not have shot down my proposal to the UN
Secretary-General calling for additional personnel to monitor the Line
of Control.
"Who is Rajesh Pilot to talk about war with Pakistan. I want to dispel
his illusion of invading Azad Kashmir, because Islamabad will give India
a suitable reply," Sardar Assef said sharply, adding: "Mr Pilot's words
of warning are not in line with what Prime Minister Narasimha Rao told
President Leghari about India's wish to live in peace with its
neighbours."
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950513
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Charar Shrine Destroyed
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The Government of Pakistan has expressed profound shock and anger over
the desecration and destruction of the 14th century mausoleum of Shaikh
Nooruddin Wali and the adjoining Khankah Mosque, as a result of military
action by Indian army troops.
Prime Minister, Benazir Bhutto condemned the unwanted destruction of
shrine and stated, "The news has been received by all Pakistanis with
horror and anguish. A wave of anger has swept the entire nation. This
act of wanton and wilful sacrilege is yet another reminder of the length
the Indian forces will go in order to subjugate our Kashmiri brethren.
The object of the latest exercise in brutality is to tear down the
symbols of faith, holy to Kashmiris, thus weakening their resolve.
However, as events in the valley in the last five years have clearly
demonstrated, these attempts are bound to fail".
Police stated that the mausoleum and the adjoining Mosque were gutted by
fire during the clash which began early on Thursday. Authorities in
Srinagar claimed militants opened fire on army forces, then set fire to
the mosque and shrine at 2200 hours GMT (Wednesday).
The Kashmiri, however, claim that the Indian army troops stormed the
shrine, fired mortar bombs and set the shrine on fire. Over 35 Kashmiris
and an undetermined number of Indian troops were killed, police said.
Two correspondents who visited Charar Sharief on Friday found a fire
blackened smouldering rubble where the shrine had once stood.
Journalists were restricted from approaching the area by Indian troops.
Anti-Indian protests rocked the entire Kashmir valley on Friday as
troops hunted Muslims Freedom Fighters, claiming that they had set fire
to Charar Sharief. Mosques in Srinagar echoed with anti-Indian slogans
after Jumma prayers, but the city's main mosque - Jamma Masjid remained
closed as its Pesh Imam was under house arrest and hundreds of police
and paramilitary forces had surrounded India's largest mosque.
Total curfew was clamped on most major towns in the Kashmir valley. The
curfew was being strictly enforced in most of Srinagar, although some
shops remained open in the Old Quarter, witnesses said.
Pilot threatens to annexe Azad Kashmir:
Blaming Pakistan of setting ablaze the mausoleum, Indian Minister of
State for Internal Security Rajesh Pilot delivered a blunt warning to
Pakistan. Pilot said that New Delhi has not given up its claim to Azad
Kashmir, saying "the only unfinished task in India-Pakistan relations is
the vacation of 'Pakistan - occupied Kashmir '. "If Pakistan does not
stop interference in the internal affairs of our country, we shall have
no option but to accomplish the unfinished task " he added.
The foreign minister said he would raise the burning of Charar-i-
Sharief.
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950514
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Pakistan calls for urgent OIC meeting
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Bureau Report
ISLAMABAD, May 13: Pakistan on Saturday called for an emergency meeting
of the OIC Contact Group on Kashmir to protest against the destruction
of Charar Sharif shrine by Indian forces in Kashmir on Eid day.
"We have asked our permanent representative to the UN in New York to
request Turkey, the chairman of OIC (Organisation of Islamic Conference)
Contact Group on Kashmir to call an emergency meeting of the five member
suites to protest against the Indian army's act of arson and genocide in
Charar Sharif," foreign minister Sardar Assef told newsmen here.
Calling Indian Prime Minister allegations of Pakistani involvement in
the desecration of the shrine as "stupid", the foreign minister said:"
No one in his right mind would believe Rao's statement, it is not only
stupid but is ridiculous in its claim that Pakistanis and Kashmiri
Mujahideen were responsible for torching the shrine."
He said: "No Muslim would even dream of setting fire to such a holy
place and that too on Eid day. The attempt to blame Pakistan is a lie
concocted by the Indian leadership to divert world attention away from
the outrage. Tell me, can a Roman Catholic burn the Vatican on Christmas
day, or an Anglican burn Canterbury Cathedral on Easter?" he asked.
Referring to Indian internal security minister Rajesh Pilot's threats of
annexing Azad Kashmir, the foreign minister said that Pakistan could not
but take seriously the repeated threats of war made by him. He said that
his most recent "irresponsible statement" has vitiated the political and
security environment in the region. "It is also evident that whenever
the calculations of Indian leaders fail, they begin to threaten Pakistan
in what has become a chronic knee-jerk reaction."
Asked about an immediate threat of war with India, the foreign minister
replied in the negative, saying, "we hope the Indian leadership will
show responsibility and act in accordance with their professions of
peace which they make in public."
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950515
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Nation to observe 'Black Day' on 19th
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Bureau Report
ISLAMABAD, May 14: A special meeting of the Federal Cabinet held on
Sunday night has given a call to the nation to observe May 19 as a
"Black Day" to condemn the desecration of Hazrat Noorudin's tomb and a
mosque in occupied Kashmir by the Indian army.
The meeting, chaired by Prime Minister Benazir Bhutto, was attended by
the governors and the chief ministers of the four provinces.
The meeting, which lasted more than two hours, was convened to discuss
the razing of Hazrat Noorudin's mazar and adjacent mosque, massacre of
Kashmiri civilians and burning of more than 1,000 houses and shops by
the Indian army in Charar Sharif.
She told the meeting that India was involved in state terrorism as it
first allowed the demolition of the Babri mosque in Ayodha, then
trampled Hazrat Bal's Mazar where relics of Holy Prophet (PBUH) were
placed and finally launched an assault on the Mazar of Hazrat Nooruddin
in Charar Sharif. She said all this was being done to demoralise the
Kashmiri people but so far all such efforts had given a new life to the
independence movement in Kashmir.
After a thorough discussion, it was decided to observe next Friday (May
19) as a 'Black Day' throughout the country.
Ghaibana Namaz-i-Janaza will be offered for those massacred by the
Indian army in Charar Sharif, protest meetings and demonstrations would
be held throughout the country to condemn the Indian army action and
express solidarity with the Kashmiris fighting their independence war.
It was also decided that the prime minister would write letters to US
President Bill Clinton, British Prime Minister John Major and other
heads of government to invite their attention towards the Charar Sharif
incident where innocent people were killed by Indian troops and
thousands of homes and shops set ablaze.
The cabinet also decided that President Farooq Leghari would write a
letter to Moroccan President in his capacity as Chairman of the
Organisation of Islamic Conference while the prime minister would write
a letter to OIC Secretary-General Hamid al Gabid inviting their
attention to this incident. The letters would be personally delivered by
Foreign Minister Sardar Assef Ahmad Ali who will be going to attend the
OIC Foreign Ministers Conference in Casablanca being held to discuss the
Bosnian issue.
The foreign minister would also demand a meeting of the OIC Contact
Group on Kashmir so that a united action should be taken against India
by the OIC to condemn this act.
It was also decided to draw the attention of the UN Human Rights
Commission on the massacre of civilian population in Kashmir as well as
UNESCO over the burring of thousands of houses in Charar Sharif.
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950510
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Tenders opened : Barotha plan enters execution phase
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From Our Special Correspondent
LAHORE, May 9: Tenders for the two main components of the $2.6 billion
Ghazi Barotha hydropower project were opened at WAPDA House on Tuesday.
It all, nine out of 18 prequalified international firms participated in
the bids, three for both the components and three each for the barrage
and power channel components.
The tenders for the third major component the power complex are
scheduled to be opened in July or August next.
Impregilo, a joint venture of Italian, French, German and Pakistan
contractors has submitted the lowest bid of Rsl5.9 billion for both the
components, barrage and power channel and their ancillary works while
the highest bid of Rs22.63 billion is by a Korean firm, Dong Ah. Another
Korean firm, Hyundai, submitted a bid for Rsl9.33 billion.
Separate bids were offered each for the barrage and power channel
components. The following six firms participated in the bid with the
amount mentioned in parenthesis for the first contract for the
construction of barrage and ancillary works.
Dogus, a joint venture of Messrs Dogus Insaat Ve Ticaret AS of Turkey,
Spie Batignolles and Fougerolle International of France and Astaldi SPA
of Italy (Rs7,143,040,111), Dong Ah Construction Industrial Co and
Doojin Engineering and Construction Company of Korea (Rs 9,493,107,899),
Dongfang Electric Corporation of China (Rs8,130,777,111) with 12.8 per
cent as discount, Dragados Constructions of Spain, Sezai Turkes Feyzi
Akkaya Construction Company of Turkey, Dyckerhoff and Philipp Holzmann
Company of Germany (Rs7,556,243,265), Hyundai Engineering and
Construction Company of Korea (Rs 6,600,520,000) and Impregilo, a joint
venture of Messrs Impregilo SPA of Italy, Companion Bernard SGE of
France, Ed Dublin AG of Germany, Saadullah Khan and Brothers and Nazir
and Company of Pakistan (Rs6,040,620, but they offered a discounted bid
of Rs5,830,342,483 on the condition if they are also awarded the
contract for the construction of power channel for which they submitted
separate tenders. For the second contract for-the construction of the 52
km-long power channel with a capacity of 56,500 cusecs of water, the
following six firms submitted their tenders.
Dogus of Turkey and Astaldi of Italy (Rs ll,429,458,339), Dong Ah of
Korea (Rsl2,148,012,867), Hyundai of Korea (Rsl2,737,622,000) with one
per cent discount if contract for the barrage is also awarded to them,
Impregilo joint venture (Rs 10,433,002,340) but it also offered
discounted bid of Rs 10,067,919,598 on the condition of awarding them a
contract for the barrage, Messrs Samsung Engineering Construction
Company of Korea in joint venture with Ianbo Steel and General
Construction Company of Korea and Sardar M. Ashraf D. Baluch of Pakistan
(Rsl4,311,200,000) and with discount Rs 13,767,000,000 and Messrs Daewoo
Corporation of Korea in joint venture with Wimpey Engineering and
Construction Int. of UK (Rsl3,668,900,000).
The chairman of the tender opening committee, Mr Mohatdullah WAPDA's
member (water), told reporters that the bids would now be evaluated and
discussed in all technical and financial detail by the consultants of
the Ghazi Barotha project, WAPDA officials, the donor agencies of the
World Bank, the Asian Development Bank, European Bank, etc, before a
decision was taken to award the contracts.
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950509
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Iraq asks Pakistan to settle row with Turkey
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From Anjum Niaz
ISLAMABAD, May 8: Iraq on Monday asked Pakistan to use its good offices
in prevailing upon the brotherly country of Turkey to desist from
demanding a re-demarcation of Iraq-Turkish border as reportedly stated
by Turkish President Demirel.
"This is the first time a Turkish head of state has spoken against our
sovereignty and made attempts to infringe upon our territory. Iraq will
defend every inch of its land," Iraqi Ambassador Kamal Missa told a
select group of newsmen here.
He called upon Pakistan and other countries to "warn" Turkey against
violating the Iraqi-Turkish borders and interfering in the internal
affairs of his country.
He accused Turkey of succumbing to American pressure and pandering to
its imperialist desires.
Ironically, Iraq is the only country to have given full legal and
constitutional rights to the two- and- a half million Kurds living in
the north, he said. "And still we are being accused of human rights
violations against them by the Americans."
While Turkey's foreign ministry denied Demirel having made such remarks,
the Iraqi ambassador quoted his foreign ministry spokesman who dismissed
the explanation of the Turkish government saying "the explanation does
not deny the fact that the Turkish officials have deliberated over this
question and this is something we denounce in the strongest terms
possible."
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950509
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Ramzi's accomplice 'arrested'
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From Saleem Shahid
QUETTA May 8: One of the suspects with alleged links with Ramzi Yousuf
and his accomplices, was arrested by the FIA officials, official sources
confirmed here later in Monday night.
The man was- identified as Mohammad Safian. According to sources he was
immediately taken Islamabad in a special plane for questioning. He was
produced before a local magistrate and mended in custody official
sources told Dawn Official sources confirmed his alleged links with the
Ramzi Yousuf suspected of bombing the World Trade Centre in New York in
which six people had been killed would more than one thousand injured.
Mohammed Akhtar was also arrested by FIA and American FBI team from
Quetta some time ago and had taken to Islamabad for questioning was
released after a week.
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950510
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Mango orchards attacked by black hopper
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From Our Correspondent
MULTAN, May 9: Black hopper, commonly known as 'Taila', has attacked
mango orchards in Muzaffargarh, Shujaabad, Khangarh, Jalalpur Pirwala
and adjoining areas of Multan mainly because of rapidly changing weather
and delayed wet spell till April 30.
The pest attack has left mango crop badly affected.
Mr Zakir Osmani, President of the Pakistan Mango Orchards Owners
Association, alleged that field staff of the Agriculture Department and
the pest-scouting cell failed to warn orchard owners against the
expected attack of hopper nor field staff advised them about the use of
pesticides.
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950510
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FM radio, cable TV: a clarification
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Bureau Report
ISLAMABAD, May 9: A spokesman for the Ministry of Information has
described as "unfortunate baseless and unfounded," allegations in a
section of the Press relating to the award of licences for FM radio
stations in some cities and for establishment of Cable Television
Network based on MMDS (Multimedia Distribution System) technology in the
country.
According to the spokesman, the licences so far awarded were given to
"reputed" companies with separate ownership as per record submitted to
the Ministry. There is no question of any single person being given
monopoly nor do the records indicate any connection with persons named
in reports published so far.
The criteria for award of licences for electronic media in the private
sector were the ability of the applicants to start operations on
immediate basis with sound investment and technology know-how. In case
of FM Band Radio Licences applications for the cities other than
Karachi, Lahore and Islamabad are still being processed and the matter
remains open, the spokesman said.
The spokesman observed that the application of an owner of a major group
of newspapers was not favourably considered on grounds that media
monopolies should not be created. Even in the developed countries cross-
ownership of media is severely restricted by law. It would be
unfortunate if an applicant whose application did not make it on merit
resorts to a "slanderous campaign" against the Government's decision,
pretending that this was being done in the name of investigative
reporting, the spokesman added.
However, the clarification does not say why the licenses were issued
without formal public announcement of the policy to allow setting up of
FM radio and Cable TV in the private sector. The clarification also does
not say how in the absence of such a public announcement, those who were
issued the licenses, came to know about this particular policy of the
government.
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950513
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Kidnapped engineer released
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From Our Staff Correspondent
QUETTA, May 12: The kidnapped WAPDA Engineer Mehar Ali Khan was released
after a long captivity and after paying Rs. 600,000 as ransom, close
relations of the engineer confirmed here on Friday.
According to them, kidnapped engineer was released on Wednesday morning
and he reportedly reached his residence in Sibi on Friday at 7:30am.
Though the family sources did not confirm the payment of ransom money, a
deal was confirmed by all those who mediated and brought about a
settlement seeking release of the kidnapped engineer.
It as the second case of kidnapping forransom in Balochistan.
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950514
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Justice Kharal dies in accident
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By H.A. Hamid
KARACHI, May 13: Justice Mohammad Siddique Kharal who served on the
bench of the High Court of Sindh for 33 days died in a road accident on
the National Highway on Saturday afternoon.
Justice Kharal, 56, who sat on the Hyderabad Bench of the High Court
died when a wagon coming from the opposite direction collided with his
car in front of the Jamali petrol pump. The car was completely smashed.
Who were the other occupants in the car was not immediately known.
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950515
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Body formed to look after historical building
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By Our Staff Reporter
KARACHI, May 14: The Administrator of the Karachi Metropolitan
Corporation has constituted a six-member committee to look after
historical buildings and ensure their protection and maintenance of the
existing historical buildings, it was officially announced here on
Sunday.
The committee is. composed of architects Habib Fida Ali and Arif Hasan:
Arshad Abdullah of Indus Valley School of Art and Architecture; Dean
Kausar Bashir and Prof Shoaib Ismail of NED University of Engineering
and Technology; KMC Director-General (Technical) Ansar-ul-Haq to act as
secretary.
The committee will be responsible to guide and supervise the maintenance
and restoration of the historical architecture of Karachi; to the
building already identify by the KDA to declare them as "historical
architecture of Karachi."
It will also monitor the conditions of all historical architecture of
the metropolis and take up immediately the rehabilitation of original
architecture of Khalikdina Hall.
The committee shall also establish a fund for preservation and
maintenance of historical architecture of Karachi and raise funds from
philanthropists, industrialists and business community. The proposed
fund shall he maintained separately and should be "exempted" from income
tax. However, Rules for its maintenance will be made later.
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950515
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Businessmen 's problems to be solved: PM
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ISLAMABAD, May 14: Prime Minister Benazir Bhutto on Sunday instituted
three committees and a task force in response to problems raised at a
meeting held here with leading businessmen and industrialists of the
country.
They, however, failed to get an immediate government decision on
reinstatement of Mr S.M. Muneer who was removed from the office of
President, Federation of Pakistan Chambers of Commerce & Industry in the
aftermath of March 25 businessmen strike. "I will discuss this matter in
the Federal Cabinet for its decision," she told the meeting.
Convened by her to learn at first hand their problems and grievances
which have occasioned three country-wide stinks by the business
community within the past one year, the meeting was attended by about
300 businessmen.
The journalists were not allowed to attend the meeting.
"I know Mr Muneer as he has travelled with me on a number of occasions
and would do so in future as well."
Talking to Dawn later, Mr Muneer regretted that he was unable to deliver
his prepared speech because the prime minister remembered after
listening to six speeches that she had to attend a special meeting of
her Cabinet on the Charar Sharif tragedy. "Anyway, the prime minister's
speech was very good."
However, the businessmen did not appear to be generally satisfied with
the meeting. "The importance of the meeting lies only in the fact that
it was addressed by the prime minister," a well-known industrialist
remarked.
The matter which was raised by businessmen repeatedly concerned
persistently unsatisfactory law and order situation in Pakistan in
general and in Karachi in particular.
After listening to businessmen's views, Prime Minister Bhutto
established a high-powered committee to be headed by Mr Ashraf Ali
Tabani, a prominent businessman, to prepare comprehensive
recommendations on the issue of sales tax. Other members of this body
include Presidents of Karachi and Lahore Chambers of Commerce &
Industry. It will set its own terms of reference.
Mr. Anwar Ali Tata ,President, All Pakistan Textile Mills Association
(APTMA), drew the Prime Minister's attention to the multifarious
problems faced by the textile industry pertaining to duty drawbacks etc.
She announced the establishment of a small task force on textile
industry which will be constituted in consultation with APTMA.
On the suggestion by the President, Karachi Stock Exchange, the Prime
Minister set up another committee to study the factors responsible for
the persistent crisis besetting the country's stock markets. The
Chairman Capital Law Authority, will be its Chairman with Presidents of
all the three stock exchanges as its members.
The prime minister further announced that meetings of the Export
Promotion Bureau would held twice in a year under her chairmanship.
She also took serious notice of the Japanese Government's decision to
impose anti-dumping duty on some of Pakistan's exports. She disclosed
that a high-powered delegation comprising representatives of both public
and private sectors would visit Japan to sort out the matter with the
Japanese authorities.
When the problems of the engineering industry were brought to her
notice, Ms Bhutto invited Mr Shirazi, a businessman from Balochistan, to
attend a special committee of the Federal Cabinet being held Monday
specifically on this subject.
She also instituted a committee comprising Mian Habibullah, Chairman,
Export Promotion Bureau and Mr Ashraf Tabani for looking into the
problems pertaining to the Customs and directed it to submit its
suggestions within two weeks.
On behalf of the FPCCI, its prime minister for "providing this
opportunity to the representatives of the business community to meet her
and explain their point of view. The first of its kind, he added, this
meeting would "certainly restore the confidence of the business
community-in the policies of the government." In view of the usefulness
of this meeting, he requested the prime minister to hold such meetings
quarterly with the business community representatives.
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9500517
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Judge told to dispose of Ittefaq case transfer plea
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Bureau Report
LAHORE, May 16: The Lahore High Court Chief Justice, Justice Mohammad
Ilyas, has asked Justice Munir A. Sheikh, the LHC company judge, to
himself "dispose of in such manner as he deems fit" the Sharif family
plea for transfer of all its company cases from his court.
The former prime minister's counsel, Chaudhry Mohammad Farooq and A.K.
Dogar, moved on May 14 a transfer application in three petitions for
liquidation of Ittefaq Foundries. Alleging bias, it went on to pray that
the judge "may kindly consider himself disqualified to hear and refrain
from dealing with all the cases pertaining to the companies of the
family of Mian Nawaz Sharif".
The application followed a verbal assault on the company judge's
impartiality on May 8 for which the two counsel have already been issued
contempt notices.
On Tuesday, the Chief Justice constituted a full bench consisting of
Justice Mohammad Arif, Justice Munir A. Sheikh, Justice Mian Allah
Nawaz, Justice Mian Nazir Akhtar and Justice Malik Mohammad Qayyum to
hear and decide the contempt case.
The transfer application was referred by Justice Sheikh to the Chief
Justice on May 14 for appropriate orders. The hearing of the liquidation
petitions was adjourned to May 23 pending the CJ's decision. On receipt
of the application, Justice Ilyas on Tuesday passed the order that since
the prayer made in the application was addressed to Justice Sheikh "he
may dispose it of himself in such manner as he deems fit".
Allegations of bias and objections to the hearing of a certain matter by
a particular judge are generally dealt with by that judge himself.
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9500518
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Video phone from next month
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By Our Staff Reporter
After the introduction of a new telephone service, people in Pakistan
will also be able to see the picture of the persons they talk with by
telephone soon.
A representative of the Siemens, Gerhard Baur, held a demonstration of
the new telephone sets before the newsmen at a ceremony at the Pakistan
Telecommunication Corporation House on Wednesday.
Mr Baur rang from his audio-visual telephone set, a screen studded with
a minor camera, displayed in a PTC House hall to the same telephone set
installed at the CTH exchange and talked with Kamran Mirza on the other
end.
A coloured-visage of Mr Mirza appeared on the screen of the caller's
set. When Mr Baur pressed a button and a window containing the picture
of the caller also appeared on the screen.
When Mirza rang up to Baur, the former's telephone number appeared on
the screen of the latter's ISDN set.
Mr Baur said the new technology will curb the abuse of obnoxious calls.
Whoever will ring up anybody the callers number will appear on the
receiver's screen.
The integrated services digital network (ISDN ), has the facilities of
picture telephone, telex, fax and transfer of data from one computer to
another terminal on the same line. The luxuries service will be
launched in June in Karachi and Islamabad simultaneously for 300
subscribers belonging to business community and commercial
establishments. The facility will be developed at Pak Capital and
Cantonment exchanges from the next week.
Mr Baur said the service matches the standards set by the International
Consultative Committee for Telecommunication.
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9500518
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The blind want full implementation of job quota
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By Our Staff Reporter
KARACHI, May 17: The Pakistan Association of the Blind on Wednesday
appealed to the government to institute and implement two per cent quota
for the blind in public work places, pointing out that new research
indicated that training blind persons for employment ultimately
benefited their employers.
Addressing a press conference at the Karachi Press Club, PAB General
Secretary Mohammed Younus Jehangiri and Legal Adviser Sarfaraz Abbasi
appealed to the government to secure the full implementation of one per
cent quota in government jobs by penalising individuals and institutions
which did not obey the quota requirement.
Apart from 60 to 70 blind persons in police (working as telephone
attendants), Pakistan International Airlines and Pakistan Steel, 80 per
cent institutions were not giving jobs to the blind under the quota
system," they pointed out.
The PAB called upon Pakistan Railways to simplify the lengthy procedure
by which they were able to secure 50 per cent reduction in railway
fares.
They urged private airlines to follow PIA's example in giving them
reduction in air tickets. Moreover, the blind called upon Karachi
University Vice Chancellor to allow them free tuition as had been done
by former V.C. Dr Jamil Jalibi.
PAB asked the government to set up of a Blind Foundation which could
address their problems. Furthermore, they requested that the government
demarcate residential plots for them and provide affordable housing in
constructed sites.
The PAB delegation, which cited its organisation as "only nationally
organised and recognised movement of the blind", regretted that the
government had banned their elections after a five-member team, calling
itself the "Asian Blind Union", (led by former PAB President Shahid
Memon) had met the Sindh Chief Minister.
They appealed to the chief minister to provide them an opportunity to
meet him and take back his ban on holding of PAB elections at, the
federal and provincial levels.
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9500518
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Anti-septic soap Scandal
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Bureau Report
LAHORE, May 17: Free distribution of antiseptic soap as part of the
prime minister's programme on family planning and primary health care,
has run into a scandal over soap cakes' price and weight.
As a result thousands of cakes have been filled up at the Punjab
directorate of health which has sought fresh instructions from the
federal government for distribution.
The price mentioned on the cake wrapper is Rs58 and its weight 100
grams. But in no case the cake weighs more than 50 grams. As for the
price, its is being considered as exorbitant because a good Pakistan-
manufactured antiseptic soap weighing 9S grams is available in the
retail market at Rs 19.
"We have withheld distribution as the cakes are not in accordance with
the weight and measure as specified by the federal government", a senior
officer of the Punjab health directorate told Dawn on Wednesday under a
prime minister directive, antiseptic soap was to be distributed free of
cost among rural women in particular as part of the family planning and
primary health care programme. The federal health department was asked
to make arrangements for supply of soap cakes.
As the process went underway, the central health directorate worked out
specifications of a cake and decided to import it. About 130,000 cakes
of antiseptic soap were said to be imported.
But, according to sources, the commodity was not imported but was
locally manufactured. The wrapper was designed for a cake weighing 100
grams. The price mentioned was Rs58 per cake and it bore the
instructions, "Not to be sold; to be used for the Prime Minister's
programme on family planning and primary health Care only." The cake
inside the wrapper, however, was small and its weight did not exceed 50
grams.
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950509
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Iraq's invasion of Kuwait : Pakistanis awarded $ 50m as compensation
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From Abdus Sattar Ghazali
KUWAIT, May 8: The United Nations Compensation Commission in Geneva has
awarded more than S0 million dollars to the Pakistanis affected by the
Iraqi invasion of Kuwait, it was announced here on Monday.
Khawar Shah, the Community Welfare Attached at the Pakistan Embassy told
Dawn that the secretariat of the UN commission had formally informed the
Pakistan mission in Geneva about the awards that included more than 32
million dollars to 7822 category "A" claimants and more than 18 million
dollars to 1105 category "C" claimants.
However, the CWA said that the exception of 22,500 dollars sent to the
Pakistan government for distribution to the seven successful claimants
in the first instalment of category "B" claims last year
Other compensation funds had been paid for other awards issued by the
commission to Pakistan claimants. The UN commission, set up by the
Security Council to be funded by Iraqi oil sales, lacks money to pay the
claimants.
Mr Shah said he had asked the OPF to provide the embassy with names of
the successful Pakistan claimants.
About 45,000 affected Pakistanis have filed claims with the UN
Compensation Commission in Geneva through Pakistan Embassy in Kuwait and
the Overseas Pakistanis Foundation in Islamabad. The total amount of
claims filed through. Pakistan embassy is approximately $405 million.
In July last year, the Kuwait government received $1.4 million
compensation for 303 victims of the Iraqi invasion of Kuwait. Kuwait
has submitted claims worth BOUT $95 billion in various categories.
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950509
Major structural changes effected at three NCBs
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By Sabihuddin Ghausi
KARACHI, May 8: In a major administrative restructuring, the government
has decided to immediately abolish the four provincial headquarters of
the three nationalised commercial banks (NCBs) and instead create nine
regional headquarters at Karachi, Lahore, Quetta, Peshawar, Faisalabad,
Multan, Islamabad, Hyderabad and Azad Kashmir.
"We have been asked to complete this reorganisation by June 1 next." a
senior banker of one of the NCBs told Dawn on telephone.
"The objective is to further the process of decentralisation initiated
in 1986 by the former Finance Minister Dr Mahbub-ul-Haq," the banker
explained and said, adequate powers are being delegated to the chief of
regional headquarter, zone and branch managers to deal with loan
applications.
The credit committees at various tiers have been abolished and the loan
sanctioning powers will now be exercised singly by the functionaries
from the branch manager to the President of the bank. "This will be
useful in ensuring accountability and quick disposal of the loan
application," explained the banker.
A Press release issued by the PBC after the presidents' meeting on
Monday spelt out the enhancement of loan sanctioning powers and
administrative authority at various levels. For the Executive Committee,
administrative and financial powers delegated by the Board is in excess
of those of the president.
For president the loan sanctioning power has been increased from Rs 100
million to a total of Rs 150 million including the maximum of Rs 50
million fund based.
The Regional Chief Executive of the rank of SEVP will be authorised for
sanctioning of a total of Rs 70 million including a maximum of Rs 30
million fund based. The SEVP Credit will have power to sanction a total
of Rs 80 million including Rs 40 million fund based. For the rank of EVP
a total of Rs 60 million including a maximum of Rs 20 million fund
based.
The Zonal Head of the rank of SVP will have powers to sanction total of
Rs 15 million includin8 a maximum of Rs 5 million while that of a VP a
total of Rs 2.5 million including a maximum of Rs 1 million fund based.
Branch manager of the rank of VP will have powers to sanction Rs 2.5
million including Rs 1.0 million fund based, AVP a total of Rs 1.0
million including a maximum of Rs 300,000 fund based, Grade I officer a
total of Rs 300 thousand and Grade II officer Rs 25,000. Branch
managers, regardless of their grades, will be given powers to sanction
agricultural loans for production.
According to PBC Press release zonal offices have been strengthened and
zonal heads will enjoy financial and administrative powers which were
earlier exercised by the circle chiefs.
The staff to be rendered surplus as a result of this reorganisation will
be absorbed in new regional headquarters and those in excess of
requirement of headquarters would be deployed for recovery, business
development and special audit.
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950509
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Import duty on 33 items cut, sales tax withdrawn
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From Nasir Malick
ISLAMABAD, May 8: The Federal Cabinet on Monday drastically reduced
import duty and withdrew 15 per cent sales tax on 33 items to curb the
growing smuggling of these small items, Information Minister Khalid
Ahmad Kharal told reporters at a briefing.
The import duties on 33 items, including wrist watches, satellite dish
receivers, disc drives for computers, computer parts and leads,
integrated circuits, remote control, VCRs and VCPs, photocopier
chemicals, electronic typewriters and ribbons, lenses, watch cells, sun
glasses, spark plugs, and calculators ranged between 15 and 70 per cent
of their price plus 15 per cent sales tax.
After the reduction of the import duty, the incentives for smugglers
will be finished," Kharal said justifying the decision.
The decision is a follow-up of a government's commitment with the
International Monetary Fund to reduce the tariff structure drastically
to make the foreign products competitive in the Pakistani market as wel1
as to improve the quality of locally-manufactured goods.
The government has committed to bring the average tariff rate to 45 per
cent in the next budget from the present 72 per cent.
SALES TAX WITHDRAWN: Kharal said the 15 per cent sales tax has also been
withdrawn on these 33 items. "The Central Board of Revenue will soon
issue a notification announcing the reduction in duties and withdrawal
of sales tax," he added.
Following are the items on which the import duty has been reduced and
sales tax withdrawn:
S.No I t e m Existing Duty Proposed Duty
1. Wrist watches 20 per cent 10 per cent
2. Satellite receiver 35 per cent 15 per cent
3. Computer disc drive 25 per cent 10 per cent
4. Floppy disc 25 per cent 10 per cent
5. Mother boards 25 per cent 10 per cent
for computers
6. Computer parts assorted 30 per cent 10 per cent
7. Computer leads 30 per cent 10 per cent
8. Integrated circuitst 15 per cent 10 per cent
9. Remote control 25 per cent 10 per cent
10. Printing cartridges 25 per cent 10 per cent
11. Ball bearings 30 per cent 10 per cent
12. Jewellers handsaw 70 per cent 10 per cent
blades
13. Toners for 65 per cent 20 per cent
photocopiers
14. Pocket calculators 35 per cent 20 per cent
15. Spark plugs 40 per cent 20 per cent
16. Shoe buttons 35 per cent 20 per cent
17. Watch cells 35 per cent 10 per cent
18. Natural pearls 15 per cent 10 per cent
19. V.C.R. 35 per cent 10 per cent
20. V.C.P. 35 per cent 10 per cent
21. Glass cutters 70 per cent 10 per cent
22. Sun glasses 35 per cent 20 per cent
23. Lithium cells 35 per cent 10 per cent
24. Micro films 25 per cent 10 per cent
25. Photocopier chemicals 65 per cent 10 per cent
26. Electronic typewriters 35 per cent 10 per cent
27. Word processors 25 per cent 10 per cent
28. Typewriter parts 15 per cent 10 per cent
29. Lenses 25 per cent 10 per cent
30. Micro-film cameras 35 per cent 10 per cent
31. Readers/Printers of 65 percent l0 per cent
micro-films
32. Slide projectors 70 per cent 10 per cent
33. Typewriter ribbons 70 per cent 10 per cent.
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950510
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Plan to sell Yellow Cabs to govt officials
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From Nasir Malick
ISLAMABAD, May 9: The government has decided to sell more than 5,000
cars imported under Yellow Cab Scheme to bureaucrats and army officers
at a nominal rate of import duty, a source told Dawn on Tuesday.
The cars, imported under the Scheme, are rotting since a couple of years
in the hot and humid weather of the southern port city of Karachi and
elsewhere, as the people who imported them are not coming forward to
take their deliveries.
After coming to power, Prime Minister Benazir Bhutto scrapped the scheme
as it had drained the resources of the nationalised banks and the
delivery of vehicles already booked was also stopped.
The importers, however, went to the Supreme Court which allowed them to
get the cars by paying the remaining 90 percent equity and so far only a
few of them have come forward to receive the deliveries while others,
apparently do not have enough funds to pay the remaining 90 percent.
The source said, the re-export of these cars was also not possible as
these were delivered by the manufacturers for a' specific purpose. Such
a move will receive a strong resistance by the car-manufacturing
companies," the source said.
Failing to sell the cars to the importers who had actually booked them,
the government had set up a committee to find a way out for disposing
off these vehicles.
The committee has suggested that the vehicles, which include mostly
diesel versions of Hyundai, Toyota, Mitsubishi cars, should be sold to
the government and army officers on 10 percent import duty only.
"They will be getting the car at about half the price of the market," he
said.
Local car manufacturers are also likely to oppose the move as it was
likely to affect their sales. "The people will definitely prefer to buy
the imported vehicles instead of the locally-manufactured ones, as they
will not only be cheaper but also better manufactured," the source said.
"As a result, the sales of local cars is going to be affected badly."
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950509
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Re-exporting yellow cabs SC directive to UBL, FB
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Bureau Report
ISLAMABAD, May 8: The Supreme Court of Pakistan directed the United Bank
Limited and Societe Generale, a French Bank, on Monday to provide names
of their officers who had prima facie committed contempt of court by
reexporting yellow cabs against the court orders.
Mr Aziz A. Munshi, former attorney general who appeared before the court
on behalf of petitioner MEFT, contended that the French bank r e-
exported the vehicles in violation of an earlier judgement of the court.
On a query from the court, Mr Munshi said the court had given the relief
to the customers and the importers. The customers had been asked to pay
the remaining 90 per cent equity if they wanted to use these as taxis
and the importers had been given the choice to sell these vehicles if
the customers were not willing to pay the remaining equity to any third
party on the payment of total price of the vehicle and the duties, he
said.
Mr Munshi said the relief was in the nature of directions to the
authorities as well as the banks.
He also reminded the court that the government had maintained through
official correspondence that the yellow cab could not be reexported by
anyone. "The reexporting of the vehicles had been done illegally and the
respondent were liable of the contempt."
The petitioner's counsel further said that the letters of credit were
opened in favour of the manufacturer despite the fact the French bank
re-exported without notice to the petitioner and on the basis of wholly
baseless misrepresentation on the part of the manufacturer.
Meanwhile, Barrister Aitzaz Ahsan and Khawaja Muhammad Farooq,
representing the United Bank Limited, submitted that the vehicles,
though physically arrived on the bill of lading, were not drawn in their
names but were in the name of the bank. "In fact, the property was never
passed."
The bank, in a written reply, contended that the application for the
contempt was misconceived.
The bank also refuted that the petitioner had no knowledge of the re-
export of these vehicles which was fully evident from the letters
written by the petitioner both to the UBL and to the Peugeot company.
"Moreover, these vehicles were not cleared before the prescribed target
date. Therefore, the petitioner could not claim any relief," it added.
Societe General Bank was represented by advocate Akber Mirza, who
contended that the hank was not party in the petition as it was not
informed when the orders of the court had been passed.
The Manager of the Credit of the French Bank, Mr Shahid Fakhruddin, was
directed by the court to file an affidavit.
The hearing was adjourned till May 16.
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950514
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Japan to impose, anti-dumping duty on yarn
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By Parvaiz Ishfaq Rana
KARACHI, May 13: Japan will impose 9.9 percent anti-dumping duty on
Pakistani yarn from June 12, 1995, but would give impunity to 8 textile
mills which cooperated in the investigation conducted by t he Anti-
Dumping Inquiry (Japan).
According to details reaching here, only 17 Pakistani textile spinning
mills responded to the questionnaire given by the Anti Dumping Inquiry
(Japan) and cooperated with them during the investigation carried out to
find out the level of yarn dumping made by the Pakistan exporters.
During investigation it was found that the 17 companies which sent
replies revealed that case could not he made against six companies. In
the second category, it was found that two companies had dumped cotton
yarn in the margin of 2 percent which did not attract anti-moping
measures.
However, yarn dumping case was proved against 9 companies as they sold
cotton yarn between 2 to 7.9 percent below the fair price. Consequently
the Japanese authorities have imposed anti-dumping duties on these
companies in the range of 2.1 to 7.9 percent.
It was also decided that those companies who did not fully cooperate in
the investigation will have to pay a uniform anti-dumping duty at a rate
of 9.9 percent on their exports.
It is also reported that the Japanese authorities would penalise all
those companies which did not respond to the questionnaire and this
could be to the extent of maximum dumping margin adjudged by the
investigator i.e. 7.9 percent.
Meanwhile, it is being strongly recommended that Pakistan should make a
political approach to the Japanese authorities involved in the
investigation but all these efforts will have to be made before May
26,1995, when a final decision will be formally announced by the
Japanese authorities.
A leading textile tycoon said, "It could be a devastating development
for the country's textile industry which is already faced with crisis on
account of high raw cotton prices and power tariffs."
Pakistan annually manufactures around 1100 million kg of yarn and after
meeting local consumption of around 700 million kg around 400 million kg
is exported worth over Rs 20 billion.
From the country's total yarn export of 400 million kg, 35 percent is
exported to Japan and around 15 percent to Taiwan, which is also
reported to have imposed antidumping import duty.
It is also reported that once the Japanese authorities announce their
final decision, it will be legally implemented by means of a cabinet
order and no further legal recourse against the decision could be taken.
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950514
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Local traders to import generator fitted containers
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By Our Staff Reporter
KARACHI, May 13: Local traders are planning to import generator or
fitted containers to facilitate marketing of imported meat across the
country.
A meat importer told Dawn on Saturday that a group of traders was busy
finalising a deal with an Australian containers manufacturer, adding
that initially four 20-feet containers would be imported at a cost of $
24,000.
"There is a big demand of imported mutton in Lahore and Islamabad but we
do not have transportation facilities," said the importer adding that
neither the railways nor the National Logistic Cell (NLC) was in a
position to arrange transportation of meat.
"Red meat has to be kept at a temperature of minus 18 degree
centigrade," he said lamenting the absence of cold storage arrangements
in the transport business.
He said a group of meat importers had decided to import generator fitted
containers to overcome the problem and added that a deal was expected to
be struck with an Australian manufacturer for the supply of four 20-feet
containers.
He said the Karachi Kirana Merchants Group (KKMG) the representative
body of importers of edible items, has asked the Central Board of
Revenue (CBR) to reduce Customs Duty on the import of containers to
facilitate meat importers adding that the CBR was yet to respond.
Currently there is a 55 percent duty on containers and KKMG has demanded
the CBR to reduce it to 10 percent.
Meat importers say, there is an initial monthly demand of 10 tonnes of
imported mutton each in Lahore and Islamabad.
They admit that imported mutton has failed to attract Karachiites and
attribute it to the fact that Karachiites do not like sheep and lamb
meat and instead prefer goat meat.
Meat importers have so far imported only sheep and lamb meat and not
goat meat, almost all of which has been consumed by big hotels and
caterers.
Meat importers say they prefer selling directly to the hotels and
caterers because of lack of cold storage facilities.
They say commercial cold storage houses charge at the rate of Rs 2.50 to
Rs 3.0 per kg per month which enhances the landed cost of imported red
meat.
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950515
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Effort needed to achieve annual target of $7.8bn
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From Muhammad Ilyas
ISLAMABAD, May 14: A growth rate of 16.8 per cent during the first 10
months of 1994-95 indicates continued buoyancy of Pakistan's exports
over the previous year but effort is still required to achieve the
annual target of $7.8 billion according to Federal Bureau of Statistics
report.
During April, the export receipts amounted to $736 million, considerably
more than the per month average of $6.6 million. The per month average
of exports during July-April was $6.6'million in the current year. In
order to break even with the target, the average required for the
remaining two months is $718 million.
A significant feature of exports is rise in unit value of many export
items. The reason for apparent improvement may, of course, be low bench
mark and significant recovery of our major trade partners Western Europe
and North America from a long standing recession.
Nevertheless, the trade gap has also increased during July-April this
year to $1.85 billion as compared to $1.5 billion in the corresponding
period of 1993'-94. Imports also climbed to $8.2 billion, an increase of
17 percent. This is, however, the cumulative effect presumably because
there was 0.4 percent decrease in April, as compared with the
corresponding month of last year.
The biggest earner of foreign exchange in the current year continued to
be cotton yarn of which 420,633 metric tonnes were exported at a value
of $1.1 billion' 15.87 percent increase respite 12.7 percent decline in
quantity.
Rice exports also remained strident, showing 89 percent improvement in
value as against 96.2 percent in quantity indicating drop in unit value.
Raw cotton has also figured in the list of exports but with only 11,749
mt., fetching a little over $22 million, as compared to $192 I million
during the July-April period of previous year.
Other important exports of Pakistan during the period were: cotton
fabrics ($852 million), fish & fish preparations ($125 million) leather
($215 million), raw wool ($7.79 million), carpets ($158 million),
bedwear ($261 million), sports goods ($192 million), petroleum &
petroleum products ($57.5 million), ready made garments ($504.8
million).
The items which, apart from raw cotton, have registered negative growth
in quantity are: cotton yarn, cotton fabrics, fish & fish preparations,
guar & guar products, ready-made garments, tarpaulin & canvas goods,
synthetic textile fabrics, vegetables and towels.
Interestingly, miscellaneous items (mentioned as "Others") kept up their
dramatic surge. These accounted for foreign exchange earning of $765.4
million, 41.4 percent more than during the corresponding period of 1993-
94.
IMPORTS: More than 2.5 million mt. of wheat was imported at a cost of
$393 million during the last 1D months, as compared to 1.7 million mt.
imported during the same period of last financial year. The FBS
statement indicates a substantial increase in unit value. The
quantitative increase was 46.9 percent, while in value terms, the import
bill was higher by 83.79 percent.
This is also true of edible eil. The quantity imported was 1.16 million
mt., 18.17 percent more than last year, but the price paid was almost
double i.e. $813 million.
The import bill for tea was $149 million, although slightly lower than
previous year, both in terms of quantity and value. Similar is the case
with milk & cream which costs $20 million, 6.6 percent less than last
year, although the quantitative reduction is over 13 percent.
Petroleum crude was imported at a cost of $405 million=F910.19 percent
more than last year but quantity-wise lower by 5.9 percent. The highest
import bill ($1.7 billion) however, was on account of machinery
excluding transport equipment. It was followed by chemicals $1.19
billion. This includes $64.5 million spent on import of pesticides,
which is higher by 38 percent than the bill for previous year).
The import of vehicles cost $341 million, 29.4 percent less than during
1993-94.
As regards pulses, 198,712 mt. were imported as compared to 168,632 mt.
last year. In dollars, it cost $63.8 million, 43.17 percent more than
last year.
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950515
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Carpet exporters in quandary
-------------------------------------------------------------------
By Our Staff Reporter
KARACHI, May 14: Carpet exporters are still indecisive about how to
dissuade western countries from putting a possible ban on import of
Pakistani carpets although the Pakistan Carpet Manufacturers and
Exporters Association has started campaigning for this purpose.
"We are trying to remove misconceptions about Pakistani carpet industry
but we have not drawn a complete strategy as such to avoid a possible
ban on import of Pakistani carpets," said the acting vice chairman,
Association Lt-Col (retd) Mumtaz A. Khan on Sunday.
The PCM&EA chief admitted existence of child-labour in the carpet
industry but only in the form of children working with their parents to
pick up the art. He denied existence of bonded-labour in the industry
and did not accept that in many cases carpet-making involves
Not only parents but children as work-force working independently.
However, one of his aides an executive member of the Association, Malik
Raees Khan admitted the possibility of child work-force being employed
in the carpet industry. But he hastened to add that "no carpet exporter
directly hires children as workers. It is only the contractor working
for an exporter who do so."
When asked as to how the exporters check it he said: "We don't take
responsibility of contractors."
Mumtaz A. Khan said there are about l,000 carpet manufacturers and
exporters scattered across the country adding that most of them have
their contractors for carpet weaving. The contractors in turn run a vast
net-work of carpet weavers working at their own homes or in the nearby
small factories.
He said carpet exporters planned to erect two training centre-cum
welfare projects, one each in Karachi and Lahore for the children
working in the carpet industry and the Government had already sanctioned
Rs 35.5 million for the purpose.
Mumtaz A. Khan said carpet exporters along with senior officials of
Export Promotion Bureau would soon visit the United States and some
European countries "to dispel impact of the negative propaganda against
Pakistani carpet industry and avert a possible ban on import of
Pakistani carpets."
"If the foreign buyers keep their import orders suspended we may witness
a shortfall in carpet export earnings," he apprehended but did not
quantify the possible shortfall.
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950516
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Incentives okayed for engineering industry
-------------------------------------------------------------------
From Nasir Malick
ISLAMABAD, May 15: The cabinet on Monday approved a package of
incentives for the engineering goods industry making deletion programme
industry-specific and withdrawing sales tax on all new plants and on
balancing, modernisation and replacement (BMR).
To prop up the engineering industry, the deletion programme has been
made industry-specific instead of the present company-specific, a
government spokesman told reporters at a briefing after the cabinet
meeting which was presided over by Prime Minister Benazir Bhutto. =A6"A=
transparent, industry specific programme would require fixation of a
minimum bench-mark for all first in the same industry on the previous
year's achievement and a target for the maximum level of deletion," the
spokesman said.
For those firms below the benchmark specific time-schedule today have to
start from the level of deletion already achieved in that industry.
After the grace period allowed in the policy, firm-to-firm negotiation
on deletion programme would not be allowed. "The policy needs to be
toward-driven and no roll back of deletion/indigenisation targets,
already achieved would be allowed."
An Indigenisation Committee, consisting of Secretaries of Ministry of
Industries, Production and Defence Production, Vice Chairman Central
Board of Revenue, an economist experienced in effective protection rate
and domestic resource cost and representatives of manufacturers and
vendors would also be set up to work under the Engineering Board. The
committee would develop and publish industry-specific deletion programme
every year in July.
As an incentive, the manufacturers achieving maximum level of deletion
may be allowed the balance of its completely knock down (CKD) component
imports at a rate of 10 percent duty.
The Engineering Board would every year publish a comprehensive list of
all machinery produced in the country which would be used as a reference
book for allowing prescribed concession on machinery not manufactured in
the country. This would also be useful from, the deletion point of view
and facilitate trade, joint ventures and international cooperation.
Use of zero-rated tariff on import of raw materials and components
already approved for engineering sector would continue and SRO 500
(1)/94 dated 9.6.94 would be modified to allow imports of raw materials
and components etc by the local engineering industry for supplies to be
made to projects and organisations entitled to concessionary imports
against indemnity bonds or bank guarantees to reduce financial burden on
the local manufacturer.
The case of supplies to organisations or projects, entitled to
concessionary imports, the local manufacturer of engineering goods may
be allowed the facility of manufacturing bonds as allowed for exports
under SRO 68 and 69 (1)/70 dated 17.04.1970. This would allow the local
manufacturer to simultaneously process orders for exports. However, the
import of raw materials in manufacture for domestic sales to non-
confessional clients would continue to be under normal tariff structure.
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9500509
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Australia poised to capture meat market share
-------------------------------------------------------------------
By Mohiuddin Aazim
KARACHI, May 8: With Pakistani markets being open for imported red meat,
Australia a major supplier of mutton is poised to launch its marketing
campaign here. Sources close to the Australian Trade Commission said,
the head of Australian Meat and Livestock Corporation (AMLC) Peter Wynne
would visit Karachi by the month-end for this purpose.
The Perth-based West Australian Meat Marketing Corporation has decided
to dispatch its chief executive Jonathan Burston to Pakistan for
exploring new avenues of enhancing export of Australian red meat and
exploit the existing ones to the optimum.
Mr Burston would meet local importers of Australian meat besides holding
discussions with Karachi Kirana Merchants Group (KKMG), the
representative body of local importers of edible items including meat.
Pakistani importers had imported a few consignments of red meat in
December last but actual imports began in January this year and so far
about 300 tonnes of Australian mutton has found its way into the local
market.
During this period, the government has given two major incentives to
meat importers namely withdrawal of 15 percent Sales Tax and reduction
of Customs Duty from 20 percent to 10 percent to help stabilise prices
of mutton in the local market but consumers have so far received no
relief.
While imported mutton is being sold to hotels and caterers at a price
ranging between Rs 55 to Rs 60 per kg, local mutton price fluctuates
between Rs 95 and Rs 100 per kg.
The reason that the resultant relief of the incentives have not passed
on to the consumers, is that the importers have been selling the
imported meat directly to some big hotels and catering houses instead of
going into wholesale meat market. But retail meat sellers also link it
to the fact that local consumers do not like lamb meat and instead use
goat meat which is not being imported.
Now that the meat importers plan to import lambs instead of mutton
through chartered vessels, shipping companies are reluctant to rent
their ships for this purpose because of lack of facilities at the port
for handling arrival of live animals in huge numbers.
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9500517
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Cut in customs duty sought
------------------------------------------------------------------
By Our Staff Reporter
KARACHI, May 16: The Pakistan Paint Manufacturers' Association (PPMA)
has urged the Government to reduce customs duty on the import of basic
raw materials being used in manufacturing of paint.
In a brief package of 1995-96 prebudget proposals the PPMA drew the
attention of Government over the continuous rise in the imported raw
material prices "due to which the industry had been under pressure and
which resulted in financial losses to industries."
The Association pointed out that the local manufacturers of Alkyd Resin
had enhanced the prices by over over 53% since July 1994 besides PVA by
43%.
The PPMA urged the Government to reduce the customs duty on titanium-
dioxide, alkyd resin, pigments and polyvinyl acetate by 20% to save the
industry from disastrous consequences.
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9500517
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Govt to lose Rs 15.264m
------------------------------------------------------------------
By Aamir Shafaat Khan
KARACHI, May 16: The government is likely to suffer a loss of Rs 15.264m
following permission to import 2,000 metric tons of printing paper for
Punjab Textbook Board on payment of mere 10% customs duty with no sales
tax.
Talking to Dawn from Lahore chairman, Pakistan Pulp Paper and Board
Mills Association (PPPBMA), Kamran Khan said the decision would put a
drain of approximately $ 1.80m on the foreign exchange of the country.
"The exchequer is set to receive another jolt of Rs 114.480 m in terms
of revenue besides putting a further drain of $ 13.50m on the foreign
exchange, when another 15,000 metric tons of paper will be imported,"
the chairman said.
The Central Board of Revenue (CBR) issued an SRO on April 18 exempting
customs duty as in excess of 10% of ad valorum besides no sales tax on
the import of paper for publishing textbooks by Punjab Textbook Board,
Lahore. It may be stated here that importers pay 70% customs duty on the
import of paper besides paying 15% sales duty.
"It is hard to understand why such a decision to import paper as taken
at all when the local industry is capable to cope with domestic
requirements, Kamran Khan asked adding the decision would prove to be a
disincentive for the local industry.
He said the textbook boards of Sindh and NWFP were allowed to import
writing and printing paper on the same pretext but hardly any benefits
were passed on to consumers.
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950513
-------------------------------------------------------------------
+++The Business & Financial Week
-------------------------------------------------------------------
+++SUGAR production is estimated to fall to-30 lakh tonnes from the
estimated production of 34 lakh tonnes thereby bringing the export of
the commodity to. a total standstill.
+++THE Rs 400 million KASB Premier mutual fund is set to make its debut
in the capital market as it will focus on capital appreciation through
long-term investment in blue chips and high quality growth stocks.
+++THE LSE is taking up the case of stock exchange members who have been
changing commissions below the exchange specified rates with the CLA for
a policy guideline whether maximum, minimum or free pricing may be
introduced for all the three horses.
+++THE Privatisation Commission has been ordered to initiate the process
of selling government shares in Habib Bank Limited.
+++AFTER suspending the $116 million loan for Kot Addu combined cycle
power station, the German government is also trying to back out of its
commitment of $39 million meant for upgradation of the 220 kv sub-
station to 500 kv at Muzaffargarh.
+++THE Federal Anti Corruption Committee has recommended the initiation
of disciplinary proceedings against high-ranking government and banking
officials who caused a huge loss to the national chequer.
+++INDIA'S former PM, Mr V.P. Singh has pleaded that both India and
Pakistan should sign a treaty on the 'non-use of nuclear capability' as
a confidence building measure between the two countries.
+++SHAMIM Ahmad Khan, chairman of the CLA has said that professional
chartered accountants have to play their role as fund manages is
resolving the possible conflicts of interest of members of the Stock
Exchange.
+++IN order to recover its Rs 18 billion stuck-up loans, the ADBP has
devided to approach other financial institutions to blacklist the
defaulters and debar them too from future lending facilities.
+++KEEPING in view the growing requirements of financial institutions
and industry Institute of Chartered Accountants of Pakistan has set a
target of producing 5000 CAs by the end of the century.
+++NBP has decided to embark upon a gigantic sports promotion programme
so as to be able to contribute more vigorously towards the building up
of a strong sports culture into the country.
+++ACCORDING to the WAPDA Hydro Electric Central labour union tariff
would be raised to double the present rate if Wapda was privatised and
the control passed onto foreign investors.
+++THE government has drawn up a plan to reshape the Board of Investment
in order to strengthen its original structure and decentralise its
authority.
+++THE government is considering the award of 52 per cent voting rights
to strategic investors in the privatisation of the utility sector.
+++RECP has exported 6.82 lakh metric tonnes of basmati out of the
target of 7 lakh metric tonnes for the year 1994-95, thereby clearing
97.42 per cent of the target.
+++THE CBR has assured the yarn merchants that the duty on the import of
polyester yarn will be rationalised is the new budget and benefits
provided under the textile relief package.
+++DUE to severe financial crises the railway budget has been amaginated
in the overall national budget as the income and expenditure gap
continued to use over the years, thereby rendering several sectors
close.
+++ROOM occupancy rates in Karachi hotels have dropped by 50 per cent
owing to the deteriorating law and order situation leading to
cancellation of booking.
-------------------------------------------------------------------
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EDITORIALS & FEATURES
9500514
The curse of stagflation
------------------------------------------------------------------
By Senator Sartaj Aziz
As the nation braces itself for the next budget, it is important to
review the economic record of the PPP government and ask the pointed
question if the impending economic crisis is only because of the failure
of the cotton crop or are there deeper causes springing from faulty
management of the economy.
As the data on the main economic indicators of the economy begin to pile
up, it is clear beyond any shadow of doubt that the PPP government has
failed to achieve its main economic and financial targets announced in
the budget for 1994-95.
The GDP growth target of 6.9% has already been lowered to 5.3%. But the
latest data indicates that the actual growth rate will be even lower,
i.e. about 4.5%. "The industrial growth target 7% will also suffer a
serious shortfall and is likely to be below 5% Many more factories have
closed down during the year, adding to the ranks of the unemployed.
The inflation rate, as measured by the Consumer Price Index ( CPI), will
be at least 14%, in 1994-95, i.e, twice as large as the target of 7%.
The increase in the Sensitive Price Index (SPI) is much higher.
"The fiscal deficit, instead of declining from 5.8% of (IDP in 1993-94
to 40%, is likely to exceed 6% in 1994-95. As explained later in this
article, this will be the result of serious shortfalls in the collection
of revenues, higher expenditures and record borrowings from bank and
non-bank sources."
The export target of $ 7.7 billion will also fail to materialise. The
projected export of $ 7.5 billion will in fact mean a decline in real
term over the export level of $ 7 billion in 199192, if the rate of
inflation and deterioration in the value of the dollars is taken into
account. But imports will increase by 12.5% against the forecast of 9%.
There will thus be a basic deterioration in the balance of payments,
despite larger borrowing from international agencies and private
lenders.
The stock market, which is an overall index of the health of an economy,
has seen its sharpest fall in history. The KSE index has plummeted from
2660 in March 1994 to 1530 on May 3 1995. This fall of 43% in the value
of shares means a total loss of Rs. 170 billion to. the investors.
On the face of it, the foreign exchange reserves of $ 2.5 billion can be
mentioned as positive feature of the economic balance sheet. However,
one cannot overlook the fact that these reserves have not been built up
through larger exports but by a windfall receipt of $ 900 million from
the sale of PTC shares and about $ 500 million of other short-term flows
mostly for the purchase of shares on the stock market. As the stock
market has started crumbing, some of the hot money can flow out as
quickly as it came in.
If the overall performance of the economy during the current financial
year is carefully analysed, most of the shortfalls can be traced to the
deflationary and anti-growth policies adopted by the government,
combined with the negative impact of the deteriorating law and order
situation and the worsening relationship between the government and the
business community.
When an economy is growing at a healthy rate, government can collect a
portion of the increased income as taxes. But when the economy is in a
recession, only a modest dose of additional taxation is advisable.
Totally disregarding the reality on the ground, the government
formulated a very unrealistic budget and went for increasing tax
collections by a record 41% in 1994-95. Sales tax was expected to
increase by 88% and customs by 34%, despite reduction in tariffs, and
projected increases in duty exempt items like wheat and machinery.
Growth Rate of GDP and Inflation Rate in Pakistan: (1960-1994)
GDP Growth Inflation Rate
Rate
1960-61 4.89 73.30
1961-62 6.01 0.48
1962-63 7.19 -0.60
1963-64 6.48 4.19
1964-65 9.38 4.79
1965-66 7.56 2.54
1966-67 3.08 8.58
1967-68 6.79 3.57
1968-69 6.49 1.59
1969-70. 9.79 4.11
1970-71 1.23 5.72
1971-72 2.32 4.71
1972-73 6.80 9.68
1973-74 7.45 29.98
1974-75 3.88 26.71
1975-76 3.25 11.67
1976-77 2.84 11.77
1977-78 7.73 7.79
1978-79 5.53 6.63
1979-80 7.33 10.71
1980-81 *6.40 12.36
1981-82 7.22 10.00
1982-83 6.70 4.59
1983-84 4.75 8.26
1984-8- 9.17 7.46
1985-86 6.96 4.83
1986-87 5.72 3.87
1987-88 5.82 3.96
1988-89 4.88 10.39
1989-90 4.67 6.04
1990-91 5.48 12.66
1991-92 7.68 9.62
1992-93 3.03 11.66
1993-94 4.0 11.80
1994-95 Projected 4.5 14.5
Source: Pakistan Economic Performance 1947-93
The economic managers seemed to have convinced the Prime Minister that
she must take bold measures to achieve "macro-economic stability by
resorting to heavy taxation to reduce the budget deficit, and also raise
utility charges of items electricity and gas. Some other advisors that
she must reduce subsidies on fertilisers, wheat and edible oil, by
increasing their prices. But no one explained to her that the cumulative
result of all these policies would be to further lower the growth rate,
already affected by the cotton crop failure and fuel inflationary
pressures.
As if to compound its fiscal sins, the government also suppressed the
estimates of its expenditures to support its target of reducing the
deficit. Debt servicing which had grown at 24% per annum in the past
five years was allowed only a 5% increase, despite the higher cost of
borrowing as a result of financial sector reforms and the expected-
appreciation in the value of the yen and the DM. The development
expenditure was also grossly underestimated in relation to construction
contracts already awarded for approved objects.
Any sensible observer could have predicted at the very outset that in
the absence of major reforms and improvements in tax collecting
machinery and a concerted programme to accelerate economic growth in
order to enlarge the tax potential, such a large increase in tax
revenues was not possible. But this government took about 7 months to
reduce the tax collection target from Rs. 259 billion to Rs. 240
billion. In March '95 the target was again revised to Rs. 230 billion.
Even this revised target is not likely to be achieved and actual
collections may not exceed Rs. 215-220 billion i.e. Rs. 40-45 billion
lower than the tar8et. This will mean that if additional taxes of Rs. 45
billion are excluded, the taxes collected will be even lower than those
in the preceding year.
The other side of the equation which has been thrown in total disarray
by the shortfall in revenues is that of bank borrowing. Total bank
borrowing for budgetary support, upto March '95, was Rs. 40 billion
against the limit of Rs. 15 billion agreed with the IMF. In desperation,
the country's fiscal managers decided to lean more heavily on the
secondary market. Up to March 1995, the government has borrowed, in
addition to Rs. 40 billion from the banking sector, Rs. 50 billion
through various national saving schemes by raising the return on these
schemes. This will not only add to the domestic debt burden of Rs. 730
billion as of March '95 but also to the debt servicing cost of this
debt.
It addition to these two sources of deficit financing, the government
has also utilised at least Rs.13 billion from the proceeds of PTC
privatisation lout of a total Rs. 29 billion) against the IMF advice.
which waited these proceeds to be used primarily for debt retirement.
The total budget deficit financing in the first 9 months of the
financial year has already crossed Rs. 103 billion. In contrast to the
government of Mr Nawaz Sharif, when larger spending was mostly for the
development of infrastructure, over-spending by this government has been
mainly for non-development expenditures.
The main result of this fiscal mess will be a dismal failure to bring
down the budget deficit to 4%. It is more likely to be over 6%s although
government might resort to some window dressing to show a lower figure.
The higher deficit will also mean a much larger increase in debt
servicing than the 5% forecast in the budget, further complicating the
process of budget making for the coming year.
The key failures of this government are reflected in the unprecedented
price hike. The inflation rate of 14%, as measured by CPI in 1994-95
will be the highest rate of inflation experienced by the economy since
1973-75, when under PPP Mark I, the rate of inflation touched 30% and
27% respectively. The table in Annex I presents the rates of GDP growth
and the rates of inflation, since 1960-61, to show that stagflation,
i.e. the combination of low growth and high inflation, has occurred
mainly during PPP rule.
The increase in the Sensitive Price Index covers items of daily use and
reflects more fully the impact of inflation on the common man. In the
past 12 months, the price of atta has increased by 40% rice by 60%,
vegetable ghee by 40% and sugar by 22%. Price of pulses have increased
by 15-20% and those of chillies, pototoes and onions, by 50 to 70%.
Prices of beef and mutton have also gone up by 40-45%. People with fixed
incomes, like civil servants and pensioners, have been hit even more
severely by this price hike.
(To be concluded)
The writer was federal finance minister during 1990-93; currently
Secretary-General of the Pakistan Muslim League (N).
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950515
-------------------------------------------------------------------
The curse of stagflation-II : Dangers of flawed IMF programme
-------------------------------------------------------------------
By Senator Sartaj Aziz
This unusually high rate of inflation will also create serious pressures
for the country's balance of payments in the coming year.
Since the value of the rupee has not been adjusted in 1994-95 to make up
for inflation, a sharper adjustment would be necessary in 1995-96. With
its chain effect on prices of POL, gas and electricity, the exchange
rate adjustment will not only add to budgetary problems but would also
make it more difficult to contain inflation in the coming year.
While agriculture is affected by adverse weather or other natural
calamities, on the average, in two out of five years, industrial growth,
if sustained by the right mixture of policies and incentives, can
cushion the economy against agricultural fluctuations and sustain a
reasonable overall growth of the economy.
Pakistan's industrial sector, however, has a very narrow base, and is
largely dependent on the agricultural sector. Industries, like textile,
sugar, fertiliser and agricultural machinery account for almost 75% of
total industrial output in the country.
One of the main objectives of the new industrial policy launched by the
Nawaz Sharif government in 1991 was to accelerate the transformation
towards science-based, value-added industries like electronics,
engineering and chemicals, through both domestic and foreign investment.
It also sought to reorient the role of the government from a regulator
of business to that of a supporter of business on the model of countries
like South Korea and Japan.
This government has not only rolled back those policies but also created
a multi-dimensional crisis in the existing industries like textile and
sugar. Early signals about the failure of the cotton crop were ignored
and no remedial measures were taken either to import cotton or provide
some relief to the textile and garment sectors against the impact of the
very sharp increase in cotton and yarn prices. Countries like Bangladesh
and Thailand which hardly grow any cotton, have flourishing textile
industries and exports, whereas Pakistan which produced 8 million bales
of cotton, even in a bad agricultural year, has seen its exports of
cloth and garments decline.
Similarly, the sugar industry was pushed into a crisis by delaying the
decision on the export of sugar and allowing it to export only 300,000
ton less than half the estimated surplus of 700,000 tons. Many sugar
factories suffered losses because of huge unsold stocks, but many party
stalwarts made money by selling sugar export permits.
The engineering industry, particularly units making parts and components
for tractors have been affected by the large scale import of low quality
built-up tractors under the Awami Tractor Scheme. Similarly, the
imposition of 15% sales tax on bricks and coal created a crisis in the
construction industry.
The dangers of an incomplete and flawed adjustment programme of the IMF
must be fully recognised. It slows down growth and fails to infuse
confidence among investors. As a result, the economy can slip into a
prolonged period of stagflation and a decline in cement production.
The sickness of our industrial sector particularly in textiles, sugar,
engineering and cement is clearly reflected in the falling share prices
on the stock market.
The causes of the continuing industrial sickness in Pakistan emanate
both from economic and non-economic factors, but recent policies have
raised the overall cost of industrial production by raising the cost of
credit, the cost of raw material and the cost of electricity and gas.
This has also depressed domestic demand and reduced their competitive
edge in the export markets. For some Indus tries, large scale smuggling
remains a major threat.
Instead of evolving smooth working relationship with business and
industry, an essential pre-requisite for the success of a deregulated
economy, the PPP government, in keeping with its past traditions, has
taken confrontation with the business community to unprecedented
heights. In June '94, there was an unprecedented strike to protest
against budgetary measures and again in March '95 to register the
widespread outrage against the law and order situation in Karachi.
Instead of undertaking a dialogue on issues and complaints the
government sacked the main office bearers of the Federation of Chamber
of Commerce and Industry. This relationship is now in a state of crisis
and mistrust.
The problems outlined above are complex and deep-seated. They cannot be
cured by signing a barrage of MoUs every two months.
It should be clear from the foregoing that the economic crisis we face
today is not just the result of a failed cotton crop but because of
wrong policies to manage the economy.
The adjustment programme in 1993-94 launched by the caretaker government
of Mr. Moeen Qureshi through a strong dose of additional taxation,
devaluation and increase in utility charges, won the support of IMF and
other donors, and created a euphoria about macroeconomic stability. But
neither the domestic policy makers nor the IMF experts were able to
recognise that the limited success achieved in 1993-94, would not
automatically solve the real problems facing the economy. Debt and
defence spending were high and could not be compressed. The tax
potential on the other hand had been not enlarged as economic growth had
slowed down for the third year in succession. The tax collection
machinery, notwithstanding, minor tinkering here and there, had not been
reformed either. The financial situation of the provinces was also
plagued by chronic and rising deficits.
Instead of taking concerted steps, in consultation with trade and
industry, to revive and accelerate industrial production, through a
fuller utilisation of installed capacity, the Government went ahead with
the same adjustment process in 1994-95 i.e. record level of additional
taxation, further increase in utility charges, increase.
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950515
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Charar Sharif sacrilege
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From Hassan Akhtar
ISLAMABAD: The attack and destruction of the Charar Sharif shrine near
Srinagar, following its more than two month long seige by the Indian
armed forces, has further heightened the tension between Pakistan and
India to an ominous level.
Although for the rulers in whelming Muslim population cannot be
legitimately claimed to be a part of the Indian Union in the same way
as, say, Uttar Pradesh or Andhra Pradesh or any of the other component
states of the union.
The wanton Indian action against the shrine of Charar Sharif is yet
another reflection of the Indian government's contempt for
internationally recognised agreements and human rights so far as the
overwhelming people of the disputed Kashmir are concerned. Indeed the
demolition of the move in Ayodhya about a couple of years ago and of
numerous other Muslim shrines and graveyards have been clear
demonstration of the Indian authorities' lack of respect and concern for
the religious and cultural traditions of the Muslims of India as a whole
in sharp contrast to its constitutional commitment to treat all its
people equally, without prejudice or bias. However, what is relevant and
important at this juncture is what Pakistan, which arrogates to itself
the role of a champion of Muslim causes and rights whether in
Afghanistan, Bosnia, Chechnya or the Central Asia, can do in case of the
ongoing bloodshed of the Kashmiri Muslims and the destruction of their
shrines and proportions, which many religious and political leaders in
the country frequently describe as the genocide of the muslim Kashmiris
by the brute Indian armed might.
Sardar Assef Ahmad Ali, foreign minister, came on the television on
Friday seeking to assure the people that he would raise the Kashmir
issue at the forthcoming OIC foreign ministers conference due to be held
in the next few days. But one would be naive to believe that such an
action, however pious it might be on the part of the foreign minister,
is likely to yield anything more than the oft repeated phraseology in
the form of yet another resolution, expressing hopes and prayers coupled
with a mild warning, but with obvious lack of any tangible action or
even a diplomatic move. Of course no one in his right mind is pleading
for military action because nothing could be more disastrous than taking
recourse to military confrontation in the present-day international
political environment and apparent ground conditions. Such actions in
the past should serve as glaring examples for the leaders and people of
Pakistan and India, if any doubt still remains in some minds.
In the given situation in Kashmir where nearly six-year old militancy
has led to barbaric bloodshed, tortured, raped and destruction of
material wealth, it is high time the leaders in government and outside
rose above their petty self-interests and employing real statesmanship,
give serious thought to workable practical steps to in the first place,
save the miserable humanity from Death and dishonour in the burning vale
and then to ponder on ways and means to resolve the problem which has
been periodically turned into senseless bloodbath. Of course, the main
responsibility of finding the way to cry halt to atrocities on innocent
people and then to resolve what has been described as the core issue,
lies with the government leaders and their foreign offices who command
the wherewithal necessary to follow up sane and sensible course in
resolving the dispute. To anyone who has been following the meandering,
complex and often frustrating course of action adopted in the last more
than four decades in seeking a solution of the Kashmir dispute, it
should be obvious that no settlement that goes in favour of one or the
other party to the dispute, could be contemplated in the near future. It
is also to be regretted that the people of Kashmir, particularly on the
Pakistan side, have had little part to play in the initial and early
years of the dispute it was initially treated as a dispute relating to a
territorial part of the divided subcontinent, with little emphasis on
the will of its people. In fact this concept was adopted by our leaders
in relation to those hundreds of Indian princely states where there were
grounds for claiming their accession to one or the other newly emergent
countries, or staying independent as in the case of Hyderabad Deccan.
While most of what is being pleaded and claimed by the leaders in
respect of Kashmir in Delhi or Islamabad, is a repetition of what is now
history, it is important that in the evolving political situation not
only in the two countries directly concerned but also on the
international horizon, innovative political thought should be directed
to find a settlement of the bleeding Kashmir problem. Mere plays Oh the
mini-screens of State-controlled television arousing the passions on
both sides which inevitably lead to more bloodshed and destruction and
more autrocities, can hardly be the answer to the present calamity
which, if not handled wisely and calmly, has the potential of turning
most of the subcontinent into an inferno with wars of various dimensions
already raging in our vicinity, with the rest of the developed world
playing their own nice game fuelling conflicts and enhancing their own
national ambitions and goals.
The alternative to armed confrontation in seeking settlement can only be
a peaceful move towards holding a dialogue. It is an unfortunate fact
that at present both the governments are faced with their own internal
problems threatening their political survival. Reactionary forces both
in India and Pakistan seem to be having a field day. Why such a
situation has arisen in the two countries is a subject for a separate
discussion some other time. What is urgently needed in Kashmir if the
worst is to be avoided is to create on a priority basis a congenial
political environment for opening a meaningful and consistent dialogue
which should first of all silence the guns and discourage the use of the
power of the barrel to settle the dispute. Although mediation or third-
party involvement is generally regarded as useful in political or
diplomatic parlays, in the case of Pakistan and India, which have had a
history of over a thousand years of interaction, the best possible
course would be to enter into direct talks with active participation of
the Kashmir leadership. During the last four decades of struggle for the
right of self-determination, the Kashmiris have matured and they have at
present a truly bold leadership. What is required is that the leaders of
Pakistan and India should have an equal level of courage and move to the
negotiating table along with the Kashmiri leadership. Results cannot be
expected to emerge instantaneously. But the participation of the
Kashmiri leaders can make a qualitative difference in trilateral
discussions. This may be a new possible road to an equitable and just
settlement and peace in the recklessly destroyed state and for its
miserable people, specially the women and children and the old poverty-
stricken millions not only in Kashmir but across the entire
subcontinent. In short, what is perhaps urgently needed is to discard
the beaten track and adopt a fresh peaceful course of action. It is
indeed a test for the leadership in both Pakistan and India.
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9500517
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Aftermath of Charar Sharief
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By M.H. Askari
WHILE the dreadful prospect of a war between Pakistan and India is
hardly ever more than a hiccup away from happening, it would be unduly
alarmist to believe that armed hostilities between two countries are
about to follow in the aftermath of the Charar Sharief outrage. This
notwithstanding the Indian minister of state Rajesh Pilot's threat of
securing the "vacation of Pakistan-occupied Kashmir."
India is too preoccupied with its internal problems to seriously
contemplate undertaking a military adventure of any kind. Prime Minister
Narasimha Rao came under pressure in both Houses of the Indian
parliament on Monday and was called upon to resign by opposition
leaders, representing both the revivalist Hindu Bharatiya Janata Party
(BJP) and the leftists. A major reason for the demand was what the
opposition described as his inept handling of the Kashmir situation.
Even within his party, Narasimha Rao's leadership is under serious
threat. Veteran dissidents of the Congress such as Narain Dutt Tiwari
insist that the recent setbacks suffered by the Congress in certain
state elections were the result of Mr Rao's flawed leadership.
Predictably, Narasimha Rao has stoutly resisted his opponents' demands
and has given no indication of wanting to resort to mid-term polls.
Naively,
----------------------------------------------
Like the ostrich with its head buried in sand,
he insists upon not recognising the rapidly
deteriorating situation in occupied Kashmir
and appears determined to go ahead with the
socalled 'political process'=97negotiating for
a larger degree of autonomy for the state and
state assembly elections.
----------------------------------------------
In a meeting with the leaders of the opposition on Sunday, even while
admitting his blunders with 'disarming candour' (as our Delhi
correspondent put it), Rao outlined a plan sponsoring an all-party
delegation to visit the disputed state for what he called greater
interaction with the Kashmiri people and provision of funds for
reconstruction of the township and shrine of Charar Sharief. No sooner
the latter offer had come to the knowledge of the Kashmiri leaders in
the occupied state, it was rejected outright. An unflappable Kashmiri
patriot, Yasin Malik, who has been in the vanguard of the freedom
movement, came on television personally, to declare that the Kashmiris
would not accept New Delhi's offer of funds and would rebuild the
township and the shrine by mobilising their own resources.
The Indian Prime Minister must realise the futility of his plans for
holding the state elections, for that would hardly mean an end to the
uprising in the Valley, and, in fact, would, without a shadow of doubt,
add to the suffering of the Kashmiri people. India's indomitable chief
election commissioner, T.N. Seshan, in a TV talk show the other day,
parried the question whether he would hold elections in Kashmir if asked
by the government to do, saying that this would have to be decided on
the basis of the realities on the ground. Seshan is known for not
holding out empty threats and had the state assembly elections in Bihar
postponed, despite pressure from New Delhi, as he required certain
conditions to be met first. At the same time, Mr Narasimha Rao has to
reckon with the constitutional requirement of not keeping the occupied
state under the Centre's control she has taken much notice of Mr Rajesh
Pilot's belligerence. She firmly believed that the escalating Indian
brutality would in no sense weaken the Kashmiri people's resolve to
attain their right of self-determination. Pakistan's Foreign Office
statement condemned the destruction of the holy shrine, describing it as
"an affront to the conscience of the Muslim world " Pakistan's military
high command, while putting the defence forces on a state of high alert=97
the only logical thing to do consequent upon the irresponsible
statements from the Indian side =97have given no hint that they are in a
'state of flap' over the Charar Sharief incident. In fact the Joint
Chiefs of Staff Committee and the Defence Committee of the Cabinet=97the
appropriate forum for taking decisions involving war and peace=97were not=
due to meet until May 16 and May 18, respectively, as these lines were
being written.
On the Indian side, Mr Rajesh Pilot in an apparent attempt to backtrack
from his earlier posture of bellicosity, has merely confirmed that India
had further "tightened security" at the frontiers with Pakistan and was
in a position to counter any terrorist attack by infiltrators from
across the border. The Indian foreign.
Like the ostrich with its head buried in sand, Prime Minister Rao
insists upon not recognising the rapidly deteriorating situation in
occupied Kashmir and appears determined to go ahead with the so-called
'political process'=97negotiating for a larger degree of autonomy for the=
state and holding of state assembly elections beyond July 17. The
chances of his getting an amendment accepted by the parliament, to
overcome the 5-year limitation, besieged as he is, cannot be described
as bright.
Nevertheless, there has been much talk of war since the burning down of
Charar Sharief. Some speakers at a seminar in Lahore even demanded that
Pakistan should no longer yield to American pressure and not demur in
regard to the nuclear option. Fortunately, former chief justice, Dr
Nasim Hasan Shah, and Dr Javed Iqbal, who were among the principal
speakers at the seminar, did not suggest war as an option despite the
deep concern and anguish at the happenings in occupied Kashmir. The
former stressed the imperative need for ending the present political
confrontation within the country and proposed the setting up of 'a
government of national salvation' to meet the domestic crises and face
India. Dr Javid Iqbal, even while not ruling out the possibility of a
war with India, maintained that Pakistan's nuclear capability is the
main deterrent standing in the way of India's going to war.
Prime Minister Benazir Bhutto has condemned the Charar Sharief outrage
in no uncertain terms but, judging from the Press reports, minister,
even while accusing "hired mercenaries" of the burning of the Charar
Sharief shrine, has reportedly urged Pakistan to prevent the event from
becoming a hurdle in bilateral ties. In plain words, nothing has
happened on either side of the border to justify a war hysteria, not at
least for the time being. On the contrary, a leading Indian daily has
reported that Mr Rao's office and the Indian ministry of external
affairs are "in a bind" over Rajesh Pilot's outburst, which could have
"serious implications for India". Western diplomats in the Indian
capital have also been quoted as expressing the view that "the rhetoric
from both sides" are mainly for domestic consumption.
It would be a mistake, however, not to recognise the strength of the
hawk lobby in India. At the end of the 1965 war, India's prime minister,
late Lal Bahadur Shastri, was advised by several of his aides that India
should now disregard the old ceasefire line in Kashmir as there had been
"massive violation" of it by Pakistan. However, Shastri decided
otherwise and even gave up some strategic posts its army had captured
during the war.
Lately, the doyen of the Indian hawk lobby K. Subrahmanyam, contributed
an article to the Times of India which basically deals with the reported
"disclosure" by a certain aide of late Mrs Indira Gandhi about Mr Bhutto
and Mrs Gandhi allegedly arriving at a secret understanding in Simla but
reflects the thinking in an important segment of the Indian
establishment. Surprisingly, the article, published in New Delhi on
April 12, has received little attention in Pakistan before his
retirement. Subrahmanyam belonged to the Indian Administrative Service
(equivalent of old CSP) but was in effect a leading member of the
policy-making cell on India's defence plans during Mrs Gandhi's regime.
He, incidentally, had referred to the Pakistan Army's action in the then
East Pakistan in 1971 as the "opportunity of the century" and advocated
India's overt intervention to achieve the separation of the eastern
wing.
In his article under reference, Subrahmanyam has regretted the absence
of a "national security decision-making mechanism" in India. He also
accuses Pakistan of disseminating "terrorism" in the occupied Kashmir
and goes on to suggest that "their (i.e. Pakistan's) terrorism is
exacting a heavy price in terms of terrorism within Pakistan itself."
This can only be interpreted to mean that Indian agencies are behind
certain acts of terrorism which are currently in evidence in Pakistan.
However, there are also some saner elements in India who do not hesitate
to criticise the policies of their government. A eminent South Asian
scholar, Praful Bidwai, in an article which appeared in thus paper on
Monday, said clearly that the elections proposed to be held by Mr
Narasimha Rao "could not possibly produce a government (in occupied
Kashmir) possessing legitimacy and authority." Bidwai has disclosed that
the situation prevailing in the occupied state could possibly prompt
some rethinking on Kashmir among the policy-makers and that some
political leaders, including Karan Singh, a former minister and son of
the late Maharaja of Kashmir, are urging Narasimha Rao's government to
give up its "coercive approach" in Kashmir in favour of reconciliation
and negotiation.
One would hope that such voices of sanity would ultimately prevail. And,
more importantly, they would be reciprocated by saner elements in
Pakistan.
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950510
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Bureaucracy & corruption
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By M.H. Askari
OF late there seems to be a systematic effort on the part of some former
civil servants to minimise, if not actually whitewash, the role of
bureaucracy in the steady decline of the institutions of governance and
blame it all on the political leadership.
There has even been a near-eulogistic piece about Mr Ghulam Ishaq Khan,
who played a key role in the arbitrary dismissal of at least two
democratically elected governments and sat smug in the President's House
in Islamabad when one of his close relations played havoc with the law
and order machinery in Sindh.
The fact is that the bureaucracy in Pakistan unconscionably exploited
the inexperience and weaknesses of the political leadership in the years
immediately after the partition to strengthen its own hold over the
levers of power. If there is rampant corruption in the country today
that too is because some bureaucrats were always there to work the
mechanism of corruption and benefit the corruption-prone political
governments with their expertise.
What we see today, therefore, is the other side of the coin =F9 the
exploitation by an unscrupulous political leadership of a section of the
bureaucracy, to use the system to its own advantage and perpetuate its
own hold over sources of corruption. The political leadership and the
bureaucracy are in fact working in tandem to achieve ends which have
less to do with national objectives and national aspirations and more
with the fulfilment of their respective private agenda. The attempt on
both sides may not always be to acquire illicit wealth but to keep a
tight grip over state power, by fair means or foul. Power is its own
reward.
There have, of course, always been honourable exceptions on both sides
but the unholy alliance has always been there for everybody to see. The
resulting damage to the state apparatus is now virtually beyond repair.
It is a futile exercise to apportion blame. If it is half a dozen on one
side, it is only six on the other.
If the political leadership in Pakistan in the early years after
independence failed to cope with the challenge of state and nation
building, that can be traced to the weaknesses of the political
leadership in the Muslim League which spear-headed the Pakistan
movement. The party was virtually without a firm power base until a few
years before independence and was confined mostly to an elite upper
class. There was the charismatic personality of Muhammad Ali Jinnah, but
most of the leaders around him were too dazzled by his charisma to have
a mind of their own. A top leader of the Pakistan movement once
confessed to this almost in so many words in the presence of this
writer. When asked why he and other leaders of his calibre in the inner
sanctum of the Muslim League did not assert themselves if and when they
found anything going wrong within the setup of the party, he frankly
admitted: "The Quaid's charisma was like a drill which went straight to
your heart and left you dumbfounded!" Most of them did no independent
thinking and made little contribution to the job of erecting a
democratic base that could support the edifice of the party's
organisation.
In the crucial years of mid-forties, when the battle for independence
entered its final phase, the strongest bastion of the Muslim League were
the students, with students of Aligarh University in the vanguard. In
New Delhi where the representatives of the British government were
engaged in last-ditch negotiations, the lobbying for the League as
representative of the Muslims was done mostly by middle-level
bureaucrats and Muslim traders while the Jamaat-i-Islami and the Jamiat-
ulema-i-Hind, who claimed to represent Islamic ethos, were firmly
opposed to the League and Quaid-i-Azam. Yet another hurdle in the
Quaid's way was the fact that until about the time of the Simla
conference in the summer of 1945, League had made little headway in
asserting itself inside the legislatures.
Even if one were to disagree with Dr Ayesha Jalal's contention that the
'magnificent seven' handpicked by the Quaid for his first cabinet were
mostly without independent bases of support in the provinces which
comprised Pakistan, there is certainly substance in her observation that
on the other hand "the administrative bureaucracy had a better chance of
putting together their own structures of command, control and
coordination."
The civil servants were thus to become the "real wielders of authority."
While a former officer of the Accounts Service, Ghulam Mohammad, was to
be inducted in the government as Finance Minister another of his junior
colleagues, Chaudhri Mohammad Ali, came to occupy the pivotal post of
Secretary-General. Incidentally, both were to play havoc with the
administrative and constitutional structure of Pakistan, while there was
no comparable hierarchy of command within the structure of the Pakistan
Muslim League. It was when Mohammad Ali was the Prime Minister that if
there is rampant corruption in the country today, it is because some
bureaucrats were always there to work the mechanism of corruption and
benefit the corruption-prone political governments with their expertise.
The sinister concept of One Unit, which was to for ever alienate the
smaller provinces from the Punjab-dominated centre, was introduced.
Ghulam Mohammad, despite his obvious physical and mental disabilities
was soon to be elevated to the position of Governor-General, to subvert
the country's constitution.
As early as 1950-51, bureaucrats at the helm of the civilian
intelligence agencies had taken upon themselves the responsibility to
"certify" which Pakistani was loyal to the country and who was not.
Passports were denied to journalists by middle-level officials in the
passport office and intelligence bureau as they were believed to be a
security risk.
Begum Shaista Ikramullah has recorded in her biography of the front-rank
Muslim Leaguer, Husseyn Shaheed Suhrawardy, how the eminent leader was
treated when in June 1948 he came to Dhaka to take up permanent
residence there. Within 24 hours of his arrival, he had a notice of
extradition served on him by the IG, Zakir Husain, under the orders of
the -city magistrate, Mr Rehmatullah, who had been asked to do so by the
chief secretary, Mr Aziz Ahmed. The last two were officers of the old
ICS who had opted for service in Pakistan. Whether they acted on their
own or on a directive from above is not clear. However, they acted with
unceremonious haste.
The appointment of Gen Ayub Khan as Pakistan Army's first Pakistani
commanderin-chief in 1951 virtually placed the destiny of the nation in
the hands of a group of bureaucrats occupying key positions. Ayub Khan
functioned in concert with the Defence Secretary, Iskander Mirza. It is
even believed that there were times when Ayub Khan and Iskander Mirza
bypassed the Prime Minister, Liaquat Ali Khan, in their efforts for
securing aid and supplies from the Americans. Ayub Khan has recorded in
his autobiography, Friends Not Masters, that since he found it too
cumbersome to get "clearance" from Karachi, which he described as "a
hotbed of intrigues", he took decisions affecting the army on his own,
800 miles away from seat of the political government. In Ayesha Jalal's
words, after Pakistan survived the assassination of its first prime
minister (October 1951) "those holding executive authority and
answerable to parliament (i.e. the political leaders) were able less and
less to influence government policies while real power came to rest with
state officials unencumbered by such constitutional niceties as
accountability to the people (emphasis added).
In the 10 years of Ayub Khan's Presidency, after he captured power
through a military coup, his chief aides were two officers of the civil
service in succession. The political devastation caused by Ayub Khan's
policies is only too well known. Kazi Anwarul Huque, a Bengali, who
began his career as a police officer but in later life rose to be a
Cabinet Minister, has expressed the view in his In Quest of Freedom (p.
1991) that after assuming power under martial law," Ayub Khan found the
civil service not only the most appropriate instrument for the
management of the bureaucracy but also a willing agency to uphold his
authority."
The role of senior West Pakistan-based bureaucrats functioning out of
Islamabad as managers of the country's finance and development plans in
the ultimate alienation and breakaway of East Pakistan is no secret. It
has been said that the top economic planners in Islamabad maintained two
sets of reports and statistics concerning the country's economy, one for
the information of the international aid-giving agencies to assure them
that the development of the eastern wing was not being neglected, and
the other reflecting the actual position, which was that there was
proportionately a much greater quantum of resources being ploughed into
the development of West Pakistan. They had mentally already written off
East Pakistan.
The authoritarian regimes of Bhutto and Gen Zia-ul-Haq also had civil
and military bureaucrats playing a key role in the making of their
policies. Bhutto leaned too much on certain serving or retired police
officers and on civil servants such as Waqar Ahmad and Afzal Saeed Khan.
Zia-ul-Haq had Mr Ghulam Ishaq Khan at his elbow, promoted to the
position of Finance Minister in the first civilian Cabinet formed after
the deposition of Bhutto.
It is, perhaps, not possible to fix the responsibility for the rampant
corruption which exists in Pakistan today either to the bureaucracy or
to the political leadership. Shahid Javed Burki and Craig Baxter have
put the matter in what can be called a realistic perspective. In their
study of Pakistan during the Zia regime they observe: "One area that is
difficult, if not impossible, to document and quantify is corruption in
government. There is no question that it exists at all levels. It
appears to be systematic in that, in certain government departments,
officials know exactly what percentage of a project's funds are for
their taking." That the entente between the bureaucracy and politicians
in positions of power is a perquisite to corruption is undeniable. The
pattern set in the past regimes has only become more sharply delineated
over the years.
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950515
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Matrimony and the moralist
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From Tahir Mirza
LAHORE: The first lesson Mr Imran Khan must be in the process of
learning is that if you have pretensions to a career in politics or in
the service of the people in any other capacity, your personal life
cannot be divorced from your public life.
The second lesson he should learn is: Don't preach. Don't fall into the
trap of moralising and sermonising. Do whatever you have to do, build a
hospital or set up a pressure group, without constructing a Taj Mahar
around it. And don't bring religion into everything.
Now that it has been confirmed that he is marrying an aristocratic
English girl, who will remain English whatever her religion or the
clothes she wears, it is inevitable that all the words with which Mr
Imran Khan has been flooding newspaper columns in recent months will be
recalled to mock him. Those who always thought that there was something
a little bogus and hypocritical about his conversion to Pakistaniyat
will say: We told you so.
In one of his articles, he had said: "All in all, I was smoothly moving
to becoming a pukka Brown Sahib. After all I had the right credentials
in terms of the right school, acceptability in the English aristocracy,
something that our Brown Sahibs would give their lives for. So what led
me to do a lota on the Brown Sahib culture and instead become a desi?"
What will he say when he is told that he has taken advantage of what he
had decried, namely, acceptability in the English aristocracy, "some
Sahibs would give their lives for"? And what kind of a 'lota' has he
done in the final analysis? The uncharitable will say that his
credentials have worked.
Mr Imran Khan should realise that the parameters he had set out for the
debate initiated by him as a prelude to entering public life were always
naive and simplistic. Pakistan's main problems have nothing to do with
the impact of Western culture or civilisation but absolutely every thing
to do with our own feudal values which dominate all sectors of life. The
symbol of the feudal is not jacket and trouser but shalwar and kameez.
He is often uncouth in his behaviour and not very literate: indeed a
dose of Western civilisation would do him a world of good. The criminal
who terrorises the citizen is not Westernised either, and even the gun
he carries is a Russian one imported from the Afghan Mujahideen. The
corruption that permeates society is our very own, as is the serfdom and
the oppression encountered in the rural areas and at the hands of the
police in the cities. The only people for whom wearing Western clothes
is actually mandatory and who find it not at all distasteful, are our
military men and policemen about which Mr Imran Khan had nothing to
say. Marry of Dur political attitudes, not least the lack of tolerance
for opposing viewpoints, are coloured by feudalism.
If the Iranians crusaded against Western culture, that formed only one
strand of a revolutionary upsurge which involved the overthrowing of
deeply entrenched and sinister monarchy. It was not something adopted in
isolation, merely for the sake of being different.
Dress has lithe to do even wit the sense of national identity, which can
come only from a feeling of full participation in the governance of
one's country and the knowledge that the life, honour and property of
the citizen are being protected by those elected to do so. The sense of
nationhood should not in an case be confused with wearing one's
patriotism on one's sleeve or being chauvinistic. If M Imran Khan had
tried to tackle some of these issues as well the religious bigotry that
has enveloped us, instead of railing against the brown sahibs, he might
have evoked a more sympathetic chord among those who read him. He
allowed himself t be involved in irrelevancies, an now stands in danger
of being described as a lost cause. Which is a pity because he has been
on of the most charismatic personalities produced by Pakistan. H should
have confined himself to quietly building and running his hospital
instead of fulmination against politics and politicians, getting himself
hooked on the likes of Gen Hameed Gul and telling us ordinary mortals
what grovelling creatures we are.
But good luck to him in hi marriage. May he have the courage to say 'to
hell with you to his critics. That would b more like the Imran Khan who
people liked.
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950515
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A sinister move
-------------------------------------------------------------------
IT IS, perhaps, still not too late to hope that for the mere expediency
of appeasing the American Jewish lobby the United States Congress would
not embark upon the disastrous course of alienating the entire Muslim
world. For that is what would inevitably happen if the legislation,
proposed by certain pro-Israel Republican members of the US Congress
calling for the transfer of the US embassy in Israel from Tel Aviv to Al
Quds (Jerusalem), were to become law. President Clinton would be well
advised to nip the mischief in the bud and heed the warning sounded by
the PLO Observer in the United Nations that the proposed shift would be
seen as a hostile act and lead to 'catastrophic consequences.' Recalling
the relevant directives of the Organisation of Islamic Countries (OIC),
the executive committee of the Islamabad Council of World Affairs has
issued a timely statement, warning the US that the Islamic countries
would have no option but to sever diplomatic relations with any country
that transfers to or establishes its embassy in Al Quds. It is not for
sentimental reasons alone that such a consequence would be logical
although sentiment, too, is a strong factor since Al Quds is the third
holiest place for the Islamic fraternity. There are also compelling
reasons under international law for the Muslim nations to expect that
the US would not take the fateful step.
Washington does not need to be reminded that East Jerusalem is an
occupied territory and that its occupation and annexation by Israel in
the 1967 war has remained unacceptable to the Muslim world. The act was
also in clear violation of the Geneva Convention of 1949, the UN General
Assembly resolutions of July 1987 and several specific resolutions of
the UN Security Council. Under the UN Charter as well as international
law and convention, acquisition of territory by conquest is
inadmissible. There is in fact a clear mandate from the UN General
Assembly calling upon Israel to rescind its annexation of the Holy City.
Besides, Islamic countries are bound by the directives of the OIC
Jerusalem Committee, which, meeting in Morocco immediately after the
great fire in Masjid Al Aqsa in 1969, resolved that the establishment of
its embassy by any country in Al Quds would be tantamount to extending
diplomatic recognition to Israel and endorsing its annexation of Al
Quds.
As it is, President Clinton's decision to place an economic embargo on
Iran has been widely seen, and generally resented by the Muslim
countries, as a move on his part to appease America's Jewish lobby, in
preparation for next year's presidential election. For the same reason,
he now appears to be yielding to pressure from the Senate Republican
leader, Bob Dole, and the House of Representatives Speaker, Newt
Gingrich, who are behind the move for the transfer of the US embassy to
Al Quds. The US President must know that the moment the proposed
transfer takes place, the Arab-Israel peace process, brokered by
Washington would go up in flames.
In that event, the gains of the peace process made so far would be lost
and, in all likelihood, the Middle East would once again become a
flashpoint of tensions and conflict. Washington must realise that its
turning a blind eye to the land-grabbing by Israel in the occupied
territories is making a mockery of the exercise in peace-making in the
Middle East. This can only be seen as a betrayal of the trust placed in
Washington by the PLO in regard to its role in promoting Arab-Israeli
normalisation.
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950513
-------------------------------------------------------------------
Budgeting without convulsions
-------------------------------------------------------------------
By Sultan Ahmed
THE government is blowing hot and cold in regard to the next budget to
be presented on June 14, which means not enough time will be allowed for
its discussion in the National Assembly.
Meanwhile, the speculators have, as usual, begun hoarding the items
likely to be taxed higher beginning with costly cigarettes. And
President Farooq Leghari, who has been taking considerable interest in
the next budget so as to prevent an adverse political fallout, has
spoken of the real economic crunch the country is facing again and of
tougher times to come.
But the budget will not be tough, says Makhdoom Shahabuddin, Minister of
State for Finance, who loves to sound reasonable and reassuring. He has
spoken of relief measures which can be deceptive in the light of such
past assurances. What matters is what they are, how much they are, and
to whom they are addressed.
We are told there will be no rise in POL prices. That statement is the
outcome of our belief that the revenue-hungry government will push up
administered prices everywhere, and POL has been one of the major hobby
horses of the revenue-raisers. Sometimes petrol prices are raised, and
at other times prices of oil products, like lubricants. When world
prices of POL do not rise we are told the exchange rate of rupee has
gone down and oil costs more in rupees.
The government has neither of the alibi now. World prices of oil have
not gone up. And the exchange rate of the rupee instead of going down
has nominally improved following the fall of the dollar by 15 per cent
in relation to the Japanese yen and 10 per cent in relation to the D-
Malk and Swiss franc. Hence the Arab oil producers are talking of fixing
oil price in a more stable currency. In fact there is a valid case for r
educing oil prices at home as the government is committed to do that
when oil imports cost less.
But if POL prices are not to rise, gas prices are to be increased by 20
per cent, as has already been indicated. Price of compressed gas has
already been raised by 19 per cent. And that is to come following the
rise in electricity rates by 20 per cent on an average, with 35 to 45
per cent rise for industries. Both have a multiplier effect on prices as
a whole. Higher gas prices would mean rise in prices of items from bred
and confectionery to fertilisers and cement.
The government tends to ignore the fact that what matters for the people
is not only the direct and indirect taxes they have to pay but also the
enhanced prices and rates for utilities. When utility rates are
increased, prices of all manufactures rise. Payments for all these have
to come out of a single pocket, and it matters little to the citizen
whether he pays more as a tax or higher prices for essential items.
Governments in developing countries are now separating the taxes from
user's charges to minimise the tax burden of the masses. But if the
rates for power, water, gas, POL and telephones, and even passports,
keep on rising and even ah-travel comes under heavy taxation, how can
the people feel they are not heavily taxed? Such deceptions are
permissible if they are moderate but not when they come with the kind of
excesses for which they are marked. And such practices are far worse for
higher rates, as for water, power and telephones, coexisting with poor
service or frequent and prolonged breakdowns, forcing the people to pay
heavily for alternative supplies.
The government is under two kind of compulsions now. It has to reduce
the budgetary deficit to four per cent next year under the IMF
compulsion, having failed to achieve that target this year, and it has
to reduce import duties on an average by 45 per cent next year from 70
per cent. It has also to reduce inflation next year, having failed to
achieve the seven per target set for the current year, and exceeding
that by almost loo per cent.
On the other side, after failing to achieve the tax collection target of
Rs. 258 billion for the current year and scaling down the targets to Rs.
222.48 billion a fall of Rs. 35.6 billion the government may not be in a
mood to overshoot this time. And Mr. Leghari is keen on preventing such
absurd excesses. So how is the government going to find additional
resources to meet its ever-expanding expenditure, of which a great deal
is wasteful?
The government has already done a good deal of smart load-shedding by
asking various autonomous bodies to borrow directly from the banks and
DFIs instead of depending on development funds through the budget. A
good deal of the development activities including infrastructure
development is being passed onto the private sector, including foreign
companies. The Prime Minister now wants the private sector to build the
highways, while Chief Minister Abdullah Shah wants that sector to
develop the infra-structure in Sindh despite its convulsions. All that
can.
Those in power and the senior officials are not aware of the hardships
caused by high taxes and inflation as they themselves do not experience
them. They are given free houses, cars, drivers and domestic servants.
Unless all these perks are abolished and they are paid clean salaries,
they will never come to know the reality of life in Pakistan, nor make
better budgets reduce the pressure on the budget a great deal and
increase the pressure on public sector banks.
And yet the budget has been showing large deficits, though it is far
less than the peaks reached earlier, and the government is under
compulsion from the IMF to reduce that sharply during the coming last
year of the three-year Extended Structural Adjustment Facility.
Then President Clinton in the richest country in the world is emphatic
that the ultimate solution for saving the shrinking dollar lies in
reducing the U.S. budget deficit and the government borrowing far less,
the government in Pakistan cannot afford to follow a contrary course
after the rupee now gets just about a tenth of a dollar compared to what
it used to in the 1950s when it was Rs. 3.35 to a dollar.
In the prevailing circumstances a strong rupee which is imperative for
the health of the economy and image of the country, could be achieved by
slashing the non-productive expenditure and the vastly wasteful ways of
the administration with its mega cabinets marred by the small merit of
its ministers and advisers. The lavish external expenditure of the
government could be cut a great deal instead of too many delegations
going abroad to achieve too little. In a set-up in which the ruling
class will not pay taxes on its incomes or agricultural wealth the
government has no other option but to cut its wasteful expenditure,
particularly when its revenue collection departments are too leaky and
have been known for promoting and profiting from smuggling instead of
preventing it.
As the budget proposals are being finalised the central question now is:
will the government repeat the folly of over-estimating the revenues
committed in the current year? The over-budgeting was done despite the
saner counsels of the middle-level of the Central Board of Revenue that
increase in income tax revenues could not be more than 15 per cent this
year, customs revenues could not rise -above seven per cent because of
the tariff concessions to be given this year sales tax on imports could
not rise above seven per cent and on domestic manufactures above 12 per
cent, and excise revenues may not rise above 12 per cent, which was
however, accepted.
But instead of the 15 per cent income tax revenue target was raised by
27 per cent and of other direct taxes by 36 per cent, customs target was
raised by 15 per cent instead of 6.8 per cent which followed, and the
sales tax target were raised by 23.23 per cent instead of the 12 per
cent which has followed.
And now even the revised revenues of Rs. 22.48 billion is far from
certain as too many industries have closed down or are working
partially. Earlier 2,000 industrial units were sick, and then their
number rose to 3,000 and now Mr. Iftikhar Ali Malik, who has been
restored as vice-president of the Federation of Chambers of Commerce and
Industry, says 500Q units are sick. That would mean far less revenues
despite the draconian measures adopted by the taxation authorities under
the directive of the PM.
What is amazing is that those in the CBR who counselled against over-
budgeting or unduly high taxation targets have been punished as they
failed to mobilise the high collection targets arbitrarily given to
them. And those who were too bullish about the targets were promoted.
And now that their projections and the actual collection which followed
have failed dismally, they are not being penalised. Instead those who
came up with prudent counsel remain punished or shot out of the CBR,
while the new CBR team is adopting draconian measures at one end and
complaining of the very high target at the other. This is grossly
unfair. The government should now make amends for the wrong course it
chose and not continue with punishing those who gave it the right
counsel.
What the government now needs is a rational and realistic approach to
budgeting instead of over-budgeting because some computer company comes
with large assumptions of revenues based on simulations. In fact even in
this case the final simulations were more realistic than the earlier
ones, but then it was too late. The targets were then scaled down not
only because the computer company came up with more modest projections
but also following the wide-spread protest in the country, including the
one called by the FPCCI.
Unfortunately, those in power and the senior officials are not aware of
the hardships caused by high taxes and inflation as they 'themselves do
not experience it. They are given free houses, cars, drivers, domestic
servants and their utility bills, including heavy telephone bills, are
paid by the public. They go for holidays and treatment abroad at public
expense with their families and do their shopping there and perform Haj
too at public expense. Unless such perks are abolished and they are paid
clean salaries. they will not know the reality of life in Pakistan nor
make better budgets.
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950513
-------------------------------------------------------------------
In free fall
-------------------------------------------------------------------
By Mazdak
YOU can skip this paragraph if you've heard this one before, but there
was this guy who jumped off a thirty-storey building. As he hurtled past
the tenth floor, he said: "So far, so good!"
This is the way our economy seems to be heading, and its managers seem
to have the same carefree attitude towards its fate. As all indicators
point towards the pavement, the government insists that all is well, and
getting better every day. If the stock exchange is taken as the
barometer of the national economy, then we are in for a very stormy
season indeed: over the last year, the Karachi Stock Exchange Index has
fallen 1,100 points from 2,600 to the current 1,500. This represents an
erosion of well over a hundred billion rupees in market capitalisation.
Thousands of small investors have seen their savings wiped Out, and
institutional portfolios have suffered huge declines.
At the same time, inflation has been eating into the savings accounts of
the middle class and the liquid assets of the well-to-do. As the prices
of essentials have shot up, there is less money than ever before to put
into savings accounts. This translates into less invisible funds for
banks, and will lead to lower levels of industrial activity. According
to a recent study carried out by the Pakistan Institute of Development
Economics (and quoted in an editorial in this newspaper last week),
inflation is currently running at 19%. This is considerably higher than
the 12 Mo claimed by the government. And as the budget looms large on
the horizon, the rate of inflation is bound to rise still higher.
None of these and other portents requires great insight into economics
or high finance. Anybody with an ounce of sense will have seen the blood
on the floors of our stock markets, and felt the agony in the shops
where the common man buys articles of his daily needs. But despite the
present and clear danger from (and to) the national economy, there is no
expression of concern, no suggestion that those at the helm of affairs
give a single solitary damn at this state of affairs.
Had the government been worried or concerned, there would have been some
activity to indicate that there was a genuine desire to turn the economy
around. Instead, there is the daily boasts of yet more MoUs signed. The
thing to note here is that quite apart from the deteriorating law and
order situation, specially in Sindh, the other factor that is likely to
deter foreign investors is the depressed state of the stock market. The
rupee component needed for power plants and other projects will have to
be largely raised on the stock exchange, and given the battering
investors have received, it is extremely unlikely that even the most
promising stock will be fully subscribed.
The other area that appears to be a blind-spot with the government is
its lack of concern over its abysmal relations with the business
community. Recently, Farooq Sumar, a leading industrialist, came out
into the open with some startling allegations of robbery, extortion and
blackmail against the MQM (Haqiqi). We had heard rumours of these
activities, but to have them substantiated by a person of Farooq Sumar's
credibility came as a shock. What was even more shocking than the
Haqiqis' alleged involvement in such criminal conduct, however, was the
indifference of everybody in authority
Mr Sumar turned to for help. Farooq is an old friend, and not somebody
given to exaggeration or hype. Nor is he of suicidal bent. For somebody
like him to go public against a lethal outfit like the Haqiqis requires
courage of a high order. It also needs desperation. In this kind of
climate where successful businessmen are ripped off without getting any
help from the government, one would have to be living in a fool's
paradise to imagine that foreign investors will come flocking in.
In the wake of the recent government-FPCCI confrontation, there is a
widespread feeling of insecurity among the business community. The
arrest of Riaz Shafi (and the needless delay in granting him bail
despite the fact that he has been accused of no criminal activity) and
the placing of many industrialists on the Exit Control List has
heightened the sense of persecution. Hopefully, the government will
break this deadlock and talk seriously with representatives of trade and
industry to restore some modicum of confidence. Currently, the actions
being taken by the government have reinforced the PPP's image of an
anti-business party. Surely it would be in the government's interest to
dispel this notion and get the economy moving. But so far, there are no
signs that anybody in authority is even remotely interested. All the
talk emanating so far from Islamabad is about deals and commissions.
Indeed, the rumour doing the rounds regarding the crackdown against
Mansha and his business interests is that he is being pressured to sell
his shares in Muslim Commercial Bank (of which he is Chairman).
Hopefully somebody in authority will one day wake up to the fact that in
a free economy, industrialisation can only take place in an environment
of mutual trust between the government and the business community. There
has to be constant interaction between the two, and policies affecting
the economy (and which don't?) should ideally be evolved after a process
of discussion and give-and-take. For instance, the plastics industry is
reeling from the decision to lower duty on finished products while
raising it on imported raw material for this sector. Overnight, the
local products have become uncompetitive, and half the factories have
closed down. Manufacturers complain that their representations to the
CBR and the Finance Ministry have fallen on deaf ears.
The engineering sector, too, has been hard hit by contradictory policies
that seem to be aimed at favouring imports at the expense of the local
industry. The Awami Tractor, Scheme is a case in point. Instead of
sitting down with the local manufacturers to work out the modalities of
supplying cheap tractors to farmers, somebody in a tearing hurry went
and ordered thousands of tractors from technologically backward East
European countries which were, happy to dump their obsolete equipment at
throwaway prices. The result is that local manufacturers and their
overseas partners, as well as their downstream parts suppliers, are in a
quandary. Despite the government's promises to lower duty on imported
components to make them participate in this scheme, they are still
waiting for CBR's written instructions.
Politically, this government is well entrenched, with the opposition
reeling, and the GHQ and the President solidly behind the PDF coalition.
Its only danger lies in a rapidly unravelling economy. It is high time
that this slide were arrested.
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9500517
------------------------------------------------------------------
Empowerment, but not quite
------------------------------------------------------------------
ALTHOUGH the ordinance empowering the Pakistan Banking Council (PBC) to
make public the names of the bank loan defaulters is unexceptionable as
a step towards meeting the requirements of accountability, the practice
of bypassing the Parliament in matters of important legislation, as in
this case, could be frowned upon. However, in this case the deviation
from the constitutional norm can be condoned because the government had
promised to discuss cases of default in the next session of the Assembly
and before that the compilation and publication of the list of
defaulters was imperative. The ordinance, by amending take Bank
(National station) (Second Amendment) Ordinance of 1995, removes the
cover of secrecy in regard to those who have had outstanding loans of
one million rupees and above for more than one year. In actual practice,
however, the enabling power will come into effect after the lapse of one
full year of the loan installments having fallen due. This is fair
enough as it allows ample time to the borrower to tide over any
temporary or unforeseen difficulties-in meeting the repayment
obligation.
Providing full information about the nature and circumstances of
sanction of loans and the subsequent defaults has been a source of
conflict between the finance ministry and the banking authorities on the
one hand and the accountability agencies on the other. The information
required for investigation into certain suspected irregularities in the
sanction of loans was denied to the federal Anti-Corruption Committee
and the Federal Ombudsman on the plea of confidentiality provisions in
the law. The general impression has been that most of the defaulted
loans were rooted in irregularities at the initial stages, giving rise
to suspicions of involvement or connivance of senior bank officials and
bureaucrats. The withholding of information of protection the erring
officials.
The ordinance still does not fulfil the full requirements of
transparency. It stipulates that the Banking Council will publish a
complete list of defaulters of loans from banks, DFIs and cooperative
societies, "as and when directed by the federal government". This
provision may become another weapon in the armoury of the government to
use selectively to keep members of legislatures and difficult
politicians in line. Fairness and transparency demand that the
publication of the list become a regular feature at specified intervals.
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9500518
------------------------------------------------------------------
Misuse of bank funds
------------------------------------------------------------------
By Sultan Ahmed
PUBLIC sector banks and development financial institutions with their
eroded capital base are to embark on an intensified drive to recover
large defaulted loans of Rs 80.28 billion. Since the publication of
lists of defaulters in August 1993, the recovery of loans exceeding Rs
one million has been only 11.38 billion or under 15 per cent.
An ordinance enabling the banks and DFIs to publish new lists, to bring
the tally of defaulters up-to-date, has been promulgated by the
President following expiry of the earlier ordinance promulgated when Mr.
Moeen Qureshi was caretaker Prime Minister. How large is the total
default now will be known only after the lists are out. Meanwhile we
have been told the number of sick industrial units has risen from 2,000-
3,000 to 5,000 units due to excessive financial constraints.
At the centre of the recovery drive is the State Bank of Pakistan (SBP)
which was earlier said to be less enthusiastic about publishing new
lists and more about effective recovery as has been achieved to an
extent by the privatised MCB and Allied Bank with far less default than
the big three, National Bank, United Bank and Habib Bank. And now that
the threat of a new list is to hang over the defaulters, will that pay
better dividends before the disclosure of their names or immediately
thereafter?
Meanwhile, following the arrest and trial of Mr Yunus Habib of Mehran
Bank, Khalid Latif of Allied Bank and Mr. Khairati, Punjab chief of
Habib Bank and dissolution of a private sector bank immediately after
the public had subscribed to it capital, the central question now is:
how to save the banks from the bank chiefs themselves, both in the
public and private sector?
The federal cabinet in July last decided to take action against bank
officials who had sanctioned loans without securing proper security or
guarantees and blacklist the defaulters for seeking new loans. Action
was to be taken particularly against those who had committed such
offences between 1991 and 1993.
What is at issue right now is not only the vast misuse of the bank funds
or loans by senior bank officials but also the politically-motivated
appointment of bank chiefs and politically directed large bank loans
even in the face of defiance or reluctance on the part of bank chiefs.
The dual flaw can do serious damage to the banks and result in far
larger defaults, with heavier liabilities in the case of some individual
borrowers.
The State Bank came up with the comprehensive Prudential Regulations for
banks and nonbank financial institutions, and has been ready to relax
them for a period in cases where it is absolutely essential. But the
regulations as a whole have to be implemented by the bank executives,
and permitted to do by their political bosses.
At issue right now is the appointment, promotion and transfer of top
bank executives and actual freedom for them to act according to the
Prudential Regulations and in conformity with the relaxation permitted
by the SBP to meet the current exigencies. Such protection from
arbitrary political intervention is essential in view of the fact that
the deposits in the banks are usually the savings of low and middle
income groups, while the borrowers are the rich men.
We now face a situation in which large politically-directed loans are
given on the basis of small collateral in disregard of the Prudential
Regulations in reality, and later when the State Bank or another
government is seized with the problem it may be too late.
What is at issue right now is not only the vast misuse of the bank funds
or loans by senior bank officials but also the politically-motivated
appointment of bank chiefs and sanction of large bank loans for
political favourites even in the face of objections from bank officials. =
In fact in the case of the prevailing context, it may be imperative to
have a pre-loan audit or verification by the State Bank before large
loans are given, although that could mean delaying the loaning process
to an extent. But in a country where the defaults have been excessive
and the capital base of the banks has been wiped out after
nationalisation, such precautionary steps are essential if the situation
is not to get far worse.
Of course, privatisation of the public sector banks and DFIs is the lone
solution in our context as combination of political leaders and senior
bank executives have been instrumental in giving too many bad loans
since nationalisation in 1974.
In such a banking world where the impact of globalisation of monetary
movements is increasing, we cannot have a light-hearted or convential
approach to banking in Pakistan, which can take a triple hit from the
political bosses, senior bank executives and the mighty bank unions.
While the leading banks of the world are punishing their executives for
fraud or other malpractices, in Pakistan the chief of the National Bank
in Britain, Zahid Khurshid, who caused a loss of 40 million dollars was
not punished. Instead his promotion was delayed by 3 months, says Malik
Qasim indignantly. Such large losses were caused to the UBL and MCB too
in Britain but hardly any action followed as the guilty had plenty of
clout.
All this makes it irnperative that presidents of public sector banks and
major DFIs are not appointed by an individual, however high but by a
board of persons inclusive of the governor of the SBP, chairman of the
Banking Council, and possibly the chairman Federal Public service
commission as well-to insulate such appointments from political
intervention. Very large loans should also be scrutinised by the SBP
before they are given instead of futility objecting to them when it is
too late.
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950509
Farooq Umar made Olympics mission chief
-------------------------------------------------------------------
KARACHI, May 8: The Prime Minister of Pakistan has appointed the
Managing Director of PIA and President, Pakistan Hockey Federation, Air
Vice Marshal Farooq Umar, as Chief de mission of Pakistan for the 1996
Atlanta Olympics.
The Chief de mission from all over the world are having their first
meeting on May 20 at Atlanta, USA. Pakistan is also requested by the
Pakistan Chief de mission AVM Farooq.
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950513
-------------------------------------------------------------------
Imran to marry on June 20 under Islamic tradition
-------------------------------------------------------------------
By Samiul Hasan
KARACHI, May 12: One of the world's most eligible bachelors Imran Khan,
marries Jemima Goldsmith on June 20 in London, family sources confirmed
on Saturday.
According to the sources in Lahore, the marriage ceremony will strictly
be according to Islamic tradition and culture.
The Nikah ceremony will take place in London's Islamic Centre and will
be followed by a sumptuous dinner. However, the exact time of the Nikah
is not confirmed though as is usual in the subcontinent if is expected
to be in the evening.
The Valima reception, date and venue of which is yet to be finalised,
will be held in Lahore in the first week of July.
The wedding of the former Pakistan captain, 41, who once enjoyed the
reputation of a raging playboy in sports, will be attended by his
immediate relatives who leave for London in the second week of June.
Family sources stated that Sir James Goldsmith has asked Imran to invite
as much relatives or friends as he desires. "But it is extremely
difficult for all of us to travel to England to attend the marriage,"
Imran's cousin Hafeezullah said, adding: "However, some of Imran's
friends living in England will definitely grace the occasion."
The relatives, Hafeezullah continued, who will be unable to attend the
function will, however, attend the Valima reception which will be held
in Lahore in the first week of July. "Since Imran's schedule after
marriage is not confirmed, the Valima date has not yet been fixed. But
it will be held in Lahore."
The sources, nevertheless, confirmed that immediately after marriage,
Imran alongwith his bride, will proceed for Umra before returning Lahore
around June 28.
Hafeezullah said he did not know the fact that when Imran met Jemima
Goldsmith but stated that the marriage proposal was made through the
'proper channel'. "Imran's father approached Sir James who, without any
hesitation or inhibitions okayed the proposal."
While the proposal was made in the second week of March, a simple
engagement ceremony was held in London a week later where Imran
exchanged rings with Ms Jemima. "The engagement ceremony was only
attended by a few people. They included Jemima's family and a couple of
Imran's family members."
Asked if there were any objections in the family to the marriage,
Hafeezullah replied in the negative.
"There is no reason for anyone to raise objections. The lady has
embraced Islam and is now a Muslim girl. Moreover, she will live in
Lahore and will also follow Islamic ways of life.
"The family is not concerned at all if Jemima's family is Christian or
Jew. Jemima matters us and she is now a Muslim. Besides, marriage with
al-Kitab is allowed in Islam."
Hafeezullah also disclosed that after embracing Islam, Jemima's new name
is Haika. "For us, she is Haika now and will be called Haika Imran after
June 20."
Hafeezullah was not sure what Jemima, half the age of Imran at 21, will
do after marriage. "What I have gathered is that she will participate
with Imran in social work, including fund raising and looking after the
Shaukat Memorial Cancer Hospital.
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950510
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Board giving me a raw deal, says Wasim
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950509
KARACHI, May. 9: Pakistan Test all-rounder Wasim Akram who lost the
reins of Pakistan team's captaincy because of the players revolt against
him over a year ago, is now blaming the cricket authorities for ignoring
him for the job.
"The cricket board did not make me captain (for Asia Cup at Sharjah)
because they probably were scared of player power and fear I might argue
with them and have my own team. They don't want this to happen and the
best way is not to make me captain," said Wasim Akram in a recent
interview.
The interview appeared in India's well known sports weekly," The
Sportstar" about a week after the conclusion of the Asia Cup at Sharjah
in mid-April and the copy of which is now available here.
"No one is a born leader. You learn with experience and I have learnt
so much while playing international cricket for so many years. I think I
can be a good captain but the authorities in our countries seem to think
otherwise," said the all rounder responding to a question about his
leadership qualities.
It is worth mentioning here that Pakistan's top seven players, including
his new ball partner Waqar Younus, openly revolted against Wasim Akram
before the team's departure for New Zealand about a year and half ago
and demanded his ouster otherwise they threatened they will not make
themselves available for the impending tour. Consequently Wasim lost his
job as captain.
During the course of the interview the former Pakistan skipper touched
upon many issues, including the Board's decision not to allow his wife
to stay with him in Sharjah, betting in Pakistan cricket and politics in
Pakistan cricket.
He admitted that his first decision not to play for Pakistan in Asia Cup
was because of the board's refusal to allow his wife to stay with him.
Akram said he was for the policy to allow wives to stay with their
player husbands during long or short tours.
"We play for 12 months a year and are out on long tours playing for the
country. Let us see how many Board members stay away from home for six
months. For them, it is easy to sit in a cosy room and make rules for
players who sweat it out on the field. I think they are being stupid
basically".
Answering a question what ails Pakistan cricket, he said: "Politics.
Petty politics. It is in the game in Pakistan, this politics. Not just
the game, it is in the administration. The cricket administration
depends on the party in power. Which ever party is in power, the Board
should be from that party's people".
In reply to a query, don't you think you can overcome this politics in
your cricket, he said, "No. I don't think. Because it is ingrained now
in the system. It is sad but what you can do about it. We would have to
live with it."
Commenting on the allegations of offering bribe to two Australian
spinners by Pakistan=92s former skipper Salim Malik, he said the Board was=
not fair to Salim Malik.
He agreed to the question that the bribery allegations against Pakistan
was part of the campaign to take the 1997 World Cup away from Pakistan
and India.
"I wish India and Pakistan play together. It is my dream to go and play
in India before I quit playing cricket".
Of stories now circulating in the subcontinent about betting and
bribery, Wasim said, "I have also heard so much and been reading about
it but honestly no such thing had happened in front of me. No one ever
approached me for betting or bribing someone. I have no idea about it
really because I too have been just hearing about it."
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950510
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Zarak made permanent as a footballer!
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By A. Majid Khan
KARACH[, May 9: After serving as a contractual player for several years
the world renowned squash star Zarak Jahan Khan has been permanently
absorbed as a footballer and not as a squash player.
The appointment of Zarak Jahan Khan who played for Pakistan which
regained the World Team title at Karachi in 1993, now as a football
player is said to be the biggest joke not only in Pakistan squash
history but might be in international sports.
The letter issued by the PIA Sports Department says Zarak Jahan Khan has
been absorbed in Group Three in the Sports Department.
A shocked Zarak, who has improved his world ranking from number 11 to
ten announced on May 1, has yet to sign the appointment letter as a
footballer.
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950515
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Salim Malik innocent until proved guilty: CEO
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By Samiul Hasan
KARACHI, May 14: The Pakistan Cricket Board (PCB) will be dispatching
its reply to the International Cricket Council (ICC) in the next few
days in response to the sworn statements submitted by three Australian
cricketers to the game's supreme body at Lord's.
Abbasi, who returned Saturday evening from New Delhi where he signed a
record 8 million pound sterling sponsorship contract with Indian Tobacco
Company (ITC) for the 1996 World Cup, however, refused to disclose the
contents of the letter.
"The inquiry into the charges made by the Australian cricketers against
Salim Malik is still continuing. Therefore, any official thing cannot be
made public," Abbasi responded.
"The only thing I can tell you is that that we have stressed in the
letter that Salim Malik should be given proper hearing. He(Malik) is
under tremendous pressure and the reputation of Pakistan cricket is also
at stake. Therefore, the situation demands that the law should take its
natural course of dispensation," Abbasi said.
Arif Abbasi added that as far as the Pakistan Cricket Board (PCB) was
concerned, Salim Malik was innocent until proven otherwise. "These are
only accusations and no action can be taken on these bases alone."
"Previously, the documents were not signed. But this time, they have
been initialled by the concerned players," he said, adding: "But the
statements cannot be termed sworn statements. No signed document is a
sworn statement.
"Moreover, Salim Malik cannot be punished simply because the documents
submitted are sighed. Both the parties will have to be cross-examined by
the Disciplinary Committee before a judgment of guilty and not guilty is
given."
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950515
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Latif, Basit don't want to play with Malik
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By Our Sports Reporter
KARACHI, May 14: Rashid Latif and Basit Ali on Sunday dropped a
bombshell when they said they will not play with Salim Malik in future.
The two, who delayed announcement on their future plans today, stated
that if Salim Malik would be in the Pakistan team, they will pull out.
"We are friends with him(Salim) but as far as cricket is concerned, we
will not play with him anymore," the two told Dawn.
Rashid, who was Salim Malik's deputy on the African safari where he
announced his retirement alongwith Basit Ali, was more specific, saying:
"He has already caused a lot of damage to Pakistan cricket.
"I feel sorry that I played cricket with him. But after knowing
everything, I will not play with him."
Rashid, an outspoken cricketer, added: "Salim's era as Pakistan captain
is the darkest period of Pakistan cricket."
Rashid stated that if he had any intentions of playing with Salim Malik,
he would have travelled to Kuwait to represent the World Eleven.
"I withdrew from the match despite signing the contract because Salim
Malik was included in the team. I was being paid US $ 4,000 for one
game. But for me, money is secondary. My principles take precedence over
everything." Rashid said.
Rashid and Basit, asked if available for the country, said if Salim
Malik is ousted, they are available.
Rashid and Basit again appealed that former Pakistan captain Javed
Miandad be brought back to the team and in the role of captain. "His
experience is -invaluable. He can be the scattered team."
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Hasib wants amicable solution to Salim's case
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By Walter Fernandez
KARACHI, May 8: "The Pakistan Cricket Board (PCB) should come forth with
a sound reason as to why Rashid Latif and Basit Ali have announced their
retirement from Test and international cricket. Were they forced into a
corner to take such a drastic step and have the PCB officials set the
ball in motion to resolve the issue by asking the two to withdraw their
decision," said: former Chairman of Cricket Selectors Hasib Ahsan in an
exclusive interview to 'Dawn' here on Monday.
"With both Rashid and Basit having taken the ultimate step prematurely,
the matter has become public property as the two cricketers are national
heroes. On this rationale alone, the public have every right to know the
underlying motive that prompted the two into the act," opined Hasib
Ahsan.
"Coming to the captaincy issue. The crux of the dilemma is that the,
should not be kept hanging in the balance. After all, we are the world
champions and the captain should be appointed much in advance so that he
can play an active part in the selection of the squad," added the former
Chief Selector.
"But the way it is being handled spanks of an amateurish approach. The
PCB is hell bent to please the Test and County Cricket Board (TCCB) and
the Australian Cricket Board (ACB) even at the expense of the total
destruction of the team -and the losing of its status as the world
champions," explained Hasib Ahsan.
"Then, come to think of it, the Salim Malik case is being referred to
the International Cricket Council (ICC) for a solution. By and large it
sounds ridiculous. No way it is a Kashmir issue that has to he sent to
the United Nations for a resolution but a purely internal matter,
requiring an answer to be found by the PCB," opined the former Chairman
of Cricket Selectors.
"Nor has the ACB any justification to intervene in the affair. Just
because two of their players who failed to live up to their billing as
the best spinners in the game at the moment on the tour of Pakistan,
came up with a trumped up bribery charge to camouflage their
ineffectiveness. It will not stand good in any court of law," stated
Hasib Ahsan.
"The present Chief Executive Officer of the PCB and the outgoing
Chairman of the Board of Control for Cricket in Pakistan (BCCP) are
agents of the TCCB and ACB. If they cannot find anamicable solution to
the Salim Malik case they should call it a day and go home," demanded
the former Chief Selector.
"Without a shadow of doubt, Salim Malik is the best batsman in the world
and he just cannot be dislodged by mediocre spinners like Shane Warne
and Tim May on Pakistani tracks, they want him removed at all cost from
the international scene, so that Australia can assume the mantle of the
best team in the world," opined Hasib Ahsan. "Both Rashid Latif and
Basit Ali have levelled allegations that many players in the Pakistan
team were actively involved ill betting. If that be so, an investigation
should be held and if anybody is found guilty he alongwith all the
undesirable elements should be banished from the team for ever,"
stressed the former Chief Selector.
"Yet another mess is being created in the National Stadium (Karachi) and
Qadhafi Stadium (Lahore) renovation work. The job has been given to
favourites of the officials of the PCB, without even resorting to the
time-tested method of securing open tenders. A colossal sum of Rs 22
crores is being spent on the work," alleged Hasib Ahsan.
"Is this not a waste of public money on the Qadhafi Stadium which at
most will hold only the final with a capacity crowd. The match will not
draw any foreigners but only spectators from home," claimed the former
Chairman of Selectors.
"What should be done is to save this kind of money and build five small
staid in Karachi, another five in Lahore and 15 others around the
country. This would help enormously in improving the infrastructure for
the game in the country," opined Hasib Ahsan.
"I hope, Senator Malik Mohammad Qasim, Chairman of the Public Accounts
Committee, probes the matter.
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