Week Ending : 18 May, 1995 Issue : 01/19

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




---------------------------- 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 --------------------------------------


-------------------------------------- Major structural changes effected at three NCBs Import duty on 33 items cut, sales tax withdrawn Plan to sell Yellow Cabs to govt officials Re-exporting yellow cabs SC directive to UBL, FB Japan to impose, anti-dumping duty on yarn Local traders to import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"



---------------------------------------- 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 ------------

in Section B

------------ 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


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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950514 ------------------------------------------------------------------- Pressler law changes suit Americans ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950513 ------------------------------------------------------------------- India's threat : Pakistan will give befitting reply: Assef ------------------------------------------------------------------- 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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950513 ------------------------------------------------------------------- Charar Shrine Destroyed ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950514 ------------------------------------------------------------------- Pakistan calls for urgent OIC meeting ------------------------------------------------------------------- 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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950515 ------------------------------------------------------------------- Nation to observe 'Black Day' on 19th ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950510 ------------------------------------------------------------------- Tenders opened : Barotha plan enters execution phase ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950509 ------------------------------------------------------------------- Iraq asks Pakistan to settle row with Turkey ------------------------------------------------------------------- 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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950509 ------------------------------------------------------------------- Ramzi's accomplice 'arrested' ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950510 ------------------------------------------------------------------- Mango orchards attacked by black hopper ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950510 ------------------------------------------------------------------- FM radio, cable TV: a clarification ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950513 ------------------------------------------------------------------- Kidnapped engineer released ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950514 ------------------------------------------------------------------- Justice Kharal dies in accident ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950515 ------------------------------------------------------------------- Body formed to look after historical building ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 9500518 ------------------------------------------------------------------ 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950514 ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950515 ------------------------------------------------------------------- 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." 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 950516 ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 9500509 ------------------------------------------------------------------ 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 9500517 ------------------------------------------------------------------ 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 9500517 ------------------------------------------------------------------ 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 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 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. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. This month in Herald 1) Who's Afraid of Imran Khan ? A Herald special report on Imran Khan's journey into the uncharted waters of pressure group politics... plus exclusive interviews with Imran Khan Sarfaraz Nawaz General Hameed Gul 2) The Empire Strikes Back The crisis in Chechnya and the Russian connection 3) Roadblocks on the Information Highway A look at how the country's entry into the rank of interacting nations is being hampered by short-sighted government policies.... ...and of course, much, much more..... Subscribe to Herald and get the whole story. Annual Subscription Rates : North America & Australasia US$ 72 Rs. 2,088 Africa, East Asia Europe & UK US$ 60 Rs. 1,656 Middle East, Indian Sub-Continent & CAS US$ 45 Rs. 1,200 Latin America & Caribbean US$ 90 Rs. 2,520 Please send the following information : Name, Postal Address, Telephone, Fax, e-mail address, and old subscription number (where applicable). 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