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DAWN WIRE SERVICE, Section A
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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
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NATIONAL NEWS
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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
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BUSINESS & ECONOMICS
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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Import duty on 33 items cut, sales tax withdrawn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
See file of Section B of DAWN 18 May 1995
for texts of "Editorials and Features" and "Sports"
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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
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SPORTS in Section B
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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
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Move in US Congress : Pakistan may finally get money back
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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
inister 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
ujahideen 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.
ohammed 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
ULTAN, 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.
r 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
-------------------------------------------------------------------
Businessmen 's problems to be solved: PM
-------------------------------------------------------------------
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.
r. 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
inister 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
------------------------------------------------------------------
Judge told to dispose of Ittefaq case transfer plea
------------------------------------------------------------------
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
------------------------------------------------------------------
Video phone from next month
------------------------------------------------------------------
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.
r 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.
r 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.
r Baur said the service matches the standards set by the International
Consultative Committee for Telecommunication.
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9500518
------------------------------------------------------------------
The blind want full implementation of job quota
------------------------------------------------------------------
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
emon) 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
------------------------------------------------------------------
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
-------------------------------------------------------------------
Iraq's invasion of Kuwait : Pakistanis awarded $ 50m as compensation
-------------------------------------------------------------------
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.
r 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
-------------------------------------------------------------------
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,
ultan, 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
onday 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
-------------------------------------------------------------------
Import duty on 33 items cut, sales tax withdrawn
-------------------------------------------------------------------
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
-------------------------------------------------------------------
Plan to sell Yellow Cabs to govt officials
-------------------------------------------------------------------
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
-------------------------------------------------------------------
Re-exporting yellow cabs SC directive to UBL, FB
-------------------------------------------------------------------
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.
r 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.
r 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.
eanwhile, 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
-------------------------------------------------------------------
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.
eanwhile, 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
-------------------------------------------------------------------
Local traders to import generator fitted containers
-------------------------------------------------------------------
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.
eat 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.
eat 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.
eat 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
-------------------------------------------------------------------
Effort needed to achieve annual target of $7.8bn
-------------------------------------------------------------------
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
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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."
umtaz 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.
umtaz 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
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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.
r 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
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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
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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
ills 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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