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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 01 August 1996 Issue : 02/31 -------------------------------------------------------------------

Contents | National News | Business & Economy | Editorials & Features | Sports

The DAWN Wire Service (DWS) is a free weekly news-service from Pakistan's largest English language newspaper, the daily DAWN. DWS offers news, analysis and features of particular interest to the Pakistani Community on the Internet. Extracts from DWS can be used provided that this entire header is included at the beginning of each extract. We encourage comments & suggestions. We can be reached at: e-mail dws@dawn.khi.erum.com.pk dws%dawn%khi@sdnpk.undp.org fax +92(21) 568-3188 & 568-3801 mail Pakistan Herald Publications (Pvt.) Limited DAWN Group of Newspapers Haroon House, Karachi 74400, Pakistan TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL ADDRESS! (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996 ******************************************************************** *****DAWN - the Internet Edition ** DAWN - the Internet Edition***** ******************************************************************** Read DAWN - the Internet Edition on the WWW ! http://xiber.com/dawn Pakistan's largest English language newspaper, DAWN, is now Pakistan's first newspaper on the WWW. DAWN - the Internet Edition will be published daily (except on Fridays and public holidays in Pakistan) and would be available on the Web by noon GMT. Check us out ! DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

CONTENTS

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NATIONAL NEWS

Call to avoid deadlock : CJ wants govt to implement judgement Eight killed, 24 injured in Lahore gang feud Test ban treaty : US, India hold private talks Opposition okays plan to oust government India-Russia talk on new defence package US govt orders building of ultra supercomputer Pakistan, US plan to increase commercial flights Drug prices again raised by 38 per cent ---------------------------------

BUSINESS & ECONOMY

How to stop this mad rush Options for textile industry: modernise or perish Is IMF interference desirable? Proposal to sell 5% IMFs gold for debt relief Govt plans to establish national grid company KSE index breaks 1,500-point barrier Stocks remain in bearish frame of mind ---------------------------------------

EDITORIALS & FEATURES

The President Marshal Ardeshir Cowasjee Living in limbo Mazdak The Marcos syndrome Ayaz Amir Terrorism Omar Kureishi -----------

SPORTS

No worthwhile moves made By Pakistani attackers Pakistan played much below expectations Pakistans dramatic win in Lords Test Pakistan fail to reach semi-finals Botham, Lamb lose libel case against Imran

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NATIONAL NEWS

960801 ------------------------------------------------------------------- Call to avoid deadlock : CJ wants govt to implement judgement ------------------------------------------------------------------- Bureau Report ISLAMABAD, July 31: Supreme Court Chief Justice Sajjad Ali Shah accused the government of dragging its feet on the question of regularisation of judges and suggested that a deadlock on the issue be avoided. The federal government is dragging its feet on the question of regularisation of judges. Efforts in all sincerity should be made for such implementation (of Supreme Court decision in transfer and appointment of judges case) in entirety. Delay leads to deadlock which should be avoided, the CJ told a full court reference held on the eve of the retirement of Justice Chaudhry Fazal Karim. He later told reporters that there were certain remedies available in law to check violations of the Constitution. He asserted that the Supreme Court decisions were binding and must be implemented. Justice Sajjad Ali said the judiciary was committed to ensuring that the Constitution be obeyed and to upholding the rule of law. We judges have taken oath prescribed in the Constitution that we will discharge our duties and perform our functions honestly to the best of our ability and faithfully in accordance with the Constitution, he said, adding: We have also taken oath to preserve, protect and defend the Constitution. The CJ pointed out that Article 190 of the Constitution ordained that all executive and judicial authorities throughout Pakistan shall come in aid of the Supreme Court. Indisputably, this is the command of the Constitution, he said, adding that the implementation of the Supreme Court decisions had to be made by or through the government or executive authorities. He regretted that the government instead of fully implementing the court decision was trying to wriggle out of it. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960731 ------------------------------------------------------------------- Eight killed, 24 injured in Lahore gang feud ------------------------------------------------------------------- Staff Reporter LAHORE, July 30: Gangland warfare involving a former city councillor and some mujawars of the Data Darbar shrine killed eight innocent people, including a child, and left 24 injured in the crowded Bilalganj locality of Lahore. Those killed in the carnage were participating in Eid-i-Milad-un-Nabi festivities in the Malik Park area near the Data Darbar shrine, watching a motorcycle show or receiving offerings from the former city councillor, Tahir Nafees alias Prince, who barely escaped death in what was apparently an attack aimed at him. Most of the casualties were from among young people. The killings took place when Tahir Prince, who was distributing niaz among the residents of the area, was fired upon by the attackers, said to be mujawars of the Data shrine. The attackers reportedly came on motorcycles and a car and opened indiscriminate firing with Kalashnikovs and other automatic weapons. They were said to be avenging the death of one of their cousins killed in London in 1994 - a crime in which Tahir Prince was implicated and for which he underwent imprisonment in Britain. He had returned to Lahore about four months ago, and tension had been running high with the rival party, reportedly led by Mian Hamid Muajawar. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960728 ------------------------------------------------------------------- Test ban treaty : US, India hold private talks ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, July 27: The United States displayed signs of visibly increased confidence to achieve its goal of getting the CTBT signed by September this year, indicating that private negotiations were going on with India to bring New Delhi on board. We believe that we can achieve this, and we look very much to China and to India to help us achieve this, state department spokesman Nick Burns told the regular briefing while commenting on the joint statement issued after meetings between Secretary Warren Christopher and Russian Foreign Minister Primakov. Following his meeting with (Chinese foreign minister) Qian Qichen and his meeting with the Indian foreign minister, the United States intends to continue as a very high priority foreign policy matter our negotiations in Geneva that are multilateral, as you know, to complete the agreement for a Comprehensive Test Ban Treaty and to have it signed this autumn in the United States. Asked how the US would get around the Indian hurdle, Mr Burns said: Well continue our negotiations, continue our private discussions, and hope that India will agree that India should not stand in the way of an agreement that is so important to people all over the world. Observers said the revitalised US hopes about CTBT could mean increased pressure on the other threshold nuclear powers, including Pakistan and Israel, if India were to somehow agree to either sign the CTBT or to soften its opposition. A serious debate has already begun in Pakistan on Islamabads position on the CTBT if India signs it, as many political opponents of the government believe the Benazir Bhutto government was preparing to sign it even if India did not. South Asian experts say Pakistan should take a position beyond the Indian position and it should declare its nuclear policy independent of New Delhi because the current policy has, in their words, placed all the Pakistani eggs in the Indian basket. They say Pakistan should link the signing of the CTBT to an amicable solution of the Kashmir dispute, reduction of conventional military force by India and signing of a no-war pact with India, guaranteed by world powers. Alternatively, Pakistan should seek a US nuclear umbrella and sign a security pact with Washington against any Indian aggression, including attacks on its borders by conventional or nuclear weapons, they say. These experts warned against the possible chances of a bargain between United States and India, as indicated by the state department spokesman. They said now that the US was openly talking of private discussions with the Indians, it was all but obvious that give- and-take sessions would be held and New Delhi would try to cash as much of its cheques, including the blank cheque handed to it by Islamabad in the shape of its India-first policy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960727 ------------------------------------------------------------------- Opposition okays plan to oust government ------------------------------------------------------------------- Bureau Report ISLAMABAD, July 26: A joint committee of the recently formed 15-party opposition alliance finalised a plan to oust the present government through agitation. The committee has finalised its recommendations and these are being sent to the Opposition Leader in the National Assembly, Mian Nawaz Sharif, Raja Zafar-ul-Haq told Dawn. Raja Zafar-ul-Haq, who is heading the committee comprising representatives from all the 15 parties, however, refused to disclose the details of the plan. The plan would be considered at a meeting of the party heads likely to be held in the first week of August, he said. The committee has recommended that mass mobilisation campaign should be launched forthwith for preparing a ground for a long march or a final attack on the government, Raja Zafar-ul-Haq said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960731 ------------------------------------------------------------------- India-Russia talk on new defence package ------------------------------------------------------------------- Correspondent WASHINGTON, July 30: India and Russia are negotiating a new defence production package which includes future aircraft co-production and weapon technology transfer, according to officials in both countries, quoted here. Indian and Russian defence officials now are exchanging views on proposed projects with the intent of approving a package in November. Proposals include potential licensing of Russian aircraft and ordnance technologies for Indian co-production. Reports said the new agreement could involve technology transfer for air defence systems, ammunition, torpedoes, SU-30 aircraft, anti-missile systems and other support systems for air, land and sea-based weapon systems. The new package is expected to cover a three-year period. It is to be finalised by November 15, and once approved, co-operative projects could begin next year, according to officials quoted here. Co-production of weapons would fit with the philosophy of the new United Front government which wants to bolster Indias indigenous defence industry, experts said. Self- reliance in weaponry and defence technology is one of our top priorities, said Indian Defence Minister Mulayam Singh Yadav in an interview last week. The drive for independence has been led by Abul Kalam, Indian defence research and development secretary and director-general of state-owned Defence Research and Development Organisation (DRDO). The Indian government now plans to produce 70 per cent of its weaponry by 2006, as part of a 10-year self-reliance plan. Today the DRDO has achieved 30 per cent self-reliance in defence systems and spares, according to DRDO officials. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960728 ------------------------------------------------------------------- US govt orders building of ultra supercomputer ------------------------------------------------------------------- Staff Correspondent WASHINGTON, July 27: While working overtime to prohibit nuclear testing by non-nuclear states under the proposed CTBT, the United States has ordered building of an ultra supercomputer that would continue the testing of nuclear weapons under simulated conditions. The contract for the computer was given to the international giant IBM by the federal government for $94 million, energy department officials announced. The computer would allow the US technicians to update and maintain their nuclear stockpiles in battle-ready condition. Many countries, including Pakistan and India, are insisting that all kinds of nuclear testing, including those on simulated computers, should be banned under the CTBT otherwise the less developed countries would be placed at a gross disadvantage. The computer, to be called DOE Option Blue, eventually will operate at about 3 trillion operations per second and will have a memory of about 2.5 trillion bytes. Current supercomputers have about 10 billion bytes. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960726 ------------------------------------------------------------------- Pakistan, US plan to increase commercial flights ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, July 25: Pakistan and US aviation officials will meet here on Aug 13 to 15 to increase commercial flights between the two countries. PIA will be trying to fly into Houston, Chicago and Washington while US airlines will be given the stations they wanted. Negotiations have been going on and meetings have now been fixed in August, M. Nawaz Tiwana, managing director of the PIA, told a news conference after speaking at a luncheon reception for prominent Pakistanis and guests in Washington. We are very keen on extending our services to other cities in the US and the prospects look extremely bright, he said. Mr Tiwana said US airlines would also be given landing rights in other Pakistani cities and PIA was not worried about the competition. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960728 ------------------------------------------------------------------- Drug prices again raised by 38 per cent ------------------------------------------------------------------- Sarfaraz Ahmed KARACHI, July 27: The pharmaceutical companies have increased the prices of both controlled and decontrolled medicines ranging from 20 to 38 per cent. The new prices as notified by pharmaceutical concerns and made effective on July 18 and 24, include a 5 per cent General Sale Tax announced in the budget for 1996-97 by the government. Those companies who have so far increased prices of their products include Wellcome, Abbott, Bosch, Glaxo, Opal and Sami. This is the third increase this year. First increase was made effective in January, followed by another in May. For the last many weeks, the supply of a number of both essential and non- essential items remains disrupted, leading to black-marketing. According to new lists issued by the multinational pharmaceuticals, the prices of the items of common use including controlled items such as Cefspan capsules and suspension (antibiotics) have also gone up. Decontrolled items of common use include Polyfax skin ointment, Iberol-F, Kaltin-AP, Optilets-M tablets and Pedialyte suspension. Interestingly, the last item is an ORS given to children in loose motions, which has seen an increase of Rs 7.82. ******************************************************************* DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************* INTERNET PROFESSIONALS WANTED * MS in computer science, with two years experience, or, BE with four years experience in the installation and management of an ISP. * Must be able to select equipment, configure, and troubleshoot TCP/IP networks independently. 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BUSINESS & ECONOMY

960727 ------------------------------------------------------------------- How to stop this mad rush ------------------------------------------------------------------- *From M. Ziauddin THE continuous erosion in the value of the Pakistani rupee against US dollar has become self-perpetuating because of the relatively higher earning potential of dollar deposits in contrast to that of Pak deposits. Pak rupee bank deposits for one year normally carry a mark-up rate of 12.5 per cent. However, after adjusting the earnings to 2.5 per cent of Zakat, 2 per cent of withholding tax and 10 per cent of inflation, the earnings become negative by at least 2 per cent. On the other hand the dollar deposits for one year which normally carry a mark up of 6.8 per cent are exempted from Zakat and withholding tax deductions. And a potential to appreciate by at least 10 per cent per annum against the Pak rupee, in view of expanding current account deficit and galloping domestic rate of inflation, makes the dollar deposits more attractive, increasing the earning rate of these deposits to around 25 per cent. And even after adjusting against a 10 per cent rate of inflation in Pakistan where a major part of these deposits are in any case used, the earnings on the dollar deposits still remain well above 12 per cent. This unremitting escalation in profits on dollar deposits vis-`-vis Pak rupee deposits, induces rupee depositors to convert their holdings into dollar deposits without as much as a second thought causing the value of the rupee to keep declining almost on daily basis. So, as more and more rupees chase the dollars, the value of dollars against the rupee keeps on escalating rendering the hard currency ever more attractive for savers than the local currency. The continued decline in the value of the rupee against dollar has made the local currency seemingly fully convertible without any official announcement to the effect and without the attendant gains like the importer not needing to go to the State Bank to buy his dollar requirements and the exporter not being required to surrender his dollars to the State Bank. One way of making the dollar deposits less attractive vis-`-vis the rupee deposits is to levy zakat and withholding tax on the former. But that would only cause the dollar deposits to deplete without in any way improving the attractiveness of the rupee deposits. Another way of tackling the problem is to bring the rupee deposit rates at par with rupee advances rates, that is 24 per cent. But this will still make the dollar deposits at least about 7 per cent more profitable than the rupee deposits. However, for the income tax payers, the profitability would go down to about 5 per cent because they can adjust the 2 per cent withholding tax against their final returns. A five per cent spread between dollar deposit and rupee deposit would make the entire exercise of converting the rupee deposits into dollar deposits and back for use in Pakistan a cumbersome drill without much gain. And in this situation, if an annual injection of $500 million of private foreign investment is made, the chase would go in the reverse direction with dollars chasing the rupees rather than rupees chasing dollars. And in order to attract as much as 500 million dollars of foreign private investment annually , the government would need to take some urgent measures like reducing the banking service charges which have shot up to 7 per cent behind which the bankers hide their inefficiency and corruption. However, the best way to arrest the foreign exchange rot is to bring down the rate of domestic inflation well under 9 per cent in the next few months. Yet another way of reducing the attractiveness of dollar deposits vis-`-vis rupee deposits is to bring the rates of rupee advances down at par with the rupee deposit rate of 12.5 per cent. This will cause a significant slow down in the rate of inflation because the cost of money, the most important input in any production, will come down steeply as a result. The attempt to reduce the rate of inflation by curbing borrowing for budgetary purposes has failed miserably because nobody seems to believe in practising what he or she is preaching with regard to tight monetary control. Waste and corruption have become institutionalised. Ask a bureaucrat about it and he will point his accusing finger at the politicians and the politician in turn would pass the buck back to the bureaucrat. Every one seems to think it his exclusive right to wallow in corruption while criticising others who indulge in the same pastime of destroying the country. It is a vicious circle which probably only time can break. Meanwhile, the government would do well to adopt measures to trigger an accelerated investment activity in productive sectors so that more and more exportable surpluses are produced. In this connection, it will have to make capital for investment by the private sector more economic while keeping a tight leash on borrowings by the public sector to finance non- productive expenditures. Besides, it should bring down the import tariff on raw materials and intermediaries by a significant degree in order to enable the investors to fabricate products for local consumption as well as for exports at costs within reach of most of domestic consumers while making them highly competitive price-wise in the international markets. Lower rate of inflation accompanied by lower rates of rupee advances would make the rupee deposits as attractive as dollar deposits rendering the exercise of converting rupees into dollars on daily basis not as profitable as it is today. It will also help if in order to retire budgetary debt, dollars are not imported at costly rates. When these dollars are converted into rupees for short-term retirement of budgetary debt, the rupee does not gain much , but when these rupees are converted back into dollars for re-exporting, the rupee sheds at least a couple of paisa against the dollar causing further erosion in the value of the rupee. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960727 ------------------------------------------------------------------- Options for textile industry: modernise or perish ------------------------------------------------------------------- By Sultan Ahmed PAKISTANS textile industry, which has been passing through a sustained multiple crisis, may fare far worse because of its failure to modernise adequately and the stiffer challenges it will face from its fast modernising competitors. Not only are its traditional competitors like India and China modernising their manufacturing process but also rather new entrants in the field like Indonesia, Thailand and Vietnam. They have imported the latest textile machinery from Germany, a major textile machinery exporter, in very large measure. The crisis is not the textile industrys alone but that of the national economy as a whole after the country incurred almost a record foreign trade deficit of $ 3 billion last year. Its exports fell to $ 8.6 billion against the modest target of 9.2 billion dollars for the year. And 60 per cent of Pakistans exports are cotton or cotton based products. The crisis in the textile industry has such an awfully depressing impact on the Karachi Stock Exchange that while 59 per cent of the 785 companies listed on it are quoted below the face value of their shares, 73 per cent of the 243 textile companies quoted on its are below their face value and 82 per cent of the spinning mills are below their face value, highlighting the absolute shambles in which the premier industry of Pakistan is now or has been for a long time. The reasons for this enduring crisis are obvious. Textile mills accustomed to getting cotton at subsidised rates are not able to get it cheap any more. After the cotton output touched a peak of 12.9 million bales in 1991- 92 there was a large fall in production during the next three years which kicked up prices and necessitated marginal imports as well. Finally when production rose to 10.5 million bales or more, last year the mills were forced to pay world prices for their cotton or import it at higher prices. The textile mill owners have also been under pressure from the nationalised banks and DFIs to repay their long defaulted loans which many have not been able to do as they partially misused them or had obtained large kickbacks for themselves from machinery exporters and others at the time of setting up of the mills. So many of these mills were born sick, and have become even more so over the years with the banks losing more than their owners. Many of them have not been able to get new bank loans, unless they had political clout and meanwhile the interest rates have shot up to 22 to 25 per cent. The government wants to help the industry. In fact each administration has come up with a comprehensive textile package, and at times more than one, as the present government has done. But the malady of the industry appears to have reached cancerous proportions. If adequate remedies are not found, enforced and sustained the loss will be more of the countrys than of the industrys, and we may export more and more of raw cotton as we did in the 1950s before the textile industry began coming up in a big way. Surely, even otherwise we cannot boost our exports significantly and our performance will be far below the modest targets set each year hopefully, if we continue to export more of cheap grey cloth, towels, bed sheets and tenting materials, apart from the low priced cotton yarn which in many cases earns less foreign exchange than the total spent on its production and the foreign exchange the raw cotton utilised for making the yarn would have earned if exported straight. During the visit of a group of Asian economic writers to Germany the German Machinery and Plant Manufacturers Association with its headquarters in Frankfurt released German machinery export figures for Asian countries. They show that out of the textile machinery worth 2.6 billion Deutsche mark it exported to Asia in 1995, Pakistan bought the machinery for just 72.5 million Deutsche mark, and India 548 million DM, which meant an increase of 58.7 per cent over its 1994 imports, while Pakistans import of the textile machinery from Germany fell by 26.4 per cent over its 1994 imports. And that happened despite the fact that India has its own textile machinery manufacturing industry and the All-Pakistan Textile Mills Association has been pleading with the government to allow textile machinery imports from India. Thailand imported textile machinery for 137 million DM from Germany in 1995  an improvement of 28 per cent over its 1994 performance, Indonesia 240 million DM which is an improvement of 54 per cent over its 1994 imports and South Korea 296.4 million DM worth of textile machinery, which marked a fall of 11.3 per cent over its 1994 imports. Japan, which manufactures advanced textile machinery and exports a part of it, imported from Germany textile machinery worth 142.3 million DM, a fall of 8.7 per cent over its 1994 imports. While Japan and South Korea are reducing the size of their textile sector as they had earlier over- expanded, labour costs there had risen high, and their products are getting less competitive in world markets. Pakistan is the only major textile producing country which reduced its import of textile machinery from Germany in 1995. And that has happened at a time when there is a great deal of talk in Pakistan about the urgency for our textile industry to modernise itself and opt for the higher value added from the low or almost non-value added production. Not cheap any more It is easy to lash out at the cotton-based industries, as Qazi Aleemullah, Deputy Chairman of the Planning Commission, did last week and assert they could no longer sustain the national economy. The textile industry, he said, got rewarded for its inefficiency through cheap cotton, cheap credit and low-wage labour. The fact is that none of the three cheap inputs is available cheap now. If more textile mills close down, the loss may not really be of their owners, who have had their ample rewards for long for small or negative investments. It will be of the banks and DFIs which lent large sums to them, of the workers and of the country which has wasted or allowed to waste precious resources cussedly for too long. The fact is that if the textile industry is not modernised quick and enabled to withstand competition not only from countries like India and China but also Thailand, Indonesia etc. which do not grow any cotton and import it from China or other countries, the result can be disastrous for us. Until recently it was non-cotton-growing countries like Japan, Hong Kong, and South Korea which manufactured and exported cotton textile but now while they reduce their output, non-cotton growing countries like Indonesia, Thailand, Vietnam and Bangladesh have joined their ranks and are reducing our options. Now what is Pakistan going to do when it does not modernise its textile industry adequately and quickly, and all others are doing that? Commerce Minister Chaudhri Mukhtar says Pakistan imported machinery for $ 2.5 billion in 1995-96 and out of that $ 600 million were for power plants. If the power plants were excluded, Pakistans total import of non- electrical machinery last year was below the 1994-95 figure of $ 2 billion import of machinery in 1994-95. And if out of that large figure, import of textile machinery from Germany in 1995 was for barely $ 48 million, which marks a fall of 26.4 per cent over the 1994 imports, modernisation of our textile industry is too slow and too inadequate while our competitors are moving fast and in full measure in this area. Ailing industry Pakistans ailing textile industry needs far more attention that it has been getting. The future should not be allowed to become a hostage of the past, and good investors should not be punished for the follies of the black sheep in the industry and absurd or unrealistic official policies. We have to make the best use of our cotton, manpower and the know-how to have a larger share of the worlds trade than a mere 0.2 per cent. The demand for creation of a separate ministry or division for textile with a minister should be given serious consideration. That is far more important than having a minister for trade fairs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960727 ------------------------------------------------------------------- Is IMF interference desirable? ------------------------------------------------------------------- Muhammad Aslam HOW much is the IMF-isation of the economy desirable? This is a big post- budget issue being debated in the top business circles. Opinions vary, but most agree that it is bad for the country and needs to be checked at the highest level. But how? This is a million-dollar question for the economic managers of the country. Some of them might have ready answers to apply a temporary brake to the developing economic crisis. But their options are limited. Some maintain the economy has been mortgaged in return for the aid package. Some even allege that the current role of the IMF may eventually lead to political decision making and the consequent loss of sovereignty. Nobody could probably deny the fact that the economy is in a bad shape. Exports are not picking up to the desired level despite massive devaluation of the rupee. Imports are becoming more expensive widening the trade deficit to well over $ 3 billion last year. Foreign exchange reserves are almost static at around $ 1.2 billion. The inflation stands in double digits. The slogan trade, not aid sees to have lost its relevance as the government is already growing under the weight of mounting foreign debt of $ 1.85 billion and the annual interest of $ 500 million on it. The country could hardly rely on its unexploited economic strength to meet this situation. It will have to look for new foreign aid in addition to the legendary donors. The successive governments were unable to fulfil the donors obligation. That is where the role of the IMF begins. Pity a the nation whom others tell what self-reliance means and how it could be achieved, said a leading spinner who owns half a dozen leading textile mills. Apart from strict control over government spendings, there could be many other options including judicious recovery of stuck-up loans of Rs 105bn. This could lead to self-reliance. Top trade and industry circles claim that some donor countries are making conscious efforts to further cut the production base of the country and make it an exporter of some primary goods. If his happens, it would turn Pakistan into a dumping ground of export surplus of the developed countries. A look at the last decades industrial inventory shows that no big unit based on the local raw materials was set up. But there are many multi- billion plants including thermal power, synthetics, PTA and some others basically based on imported raw materials, local corporate giants say. Strong textile base Pakistan has a strong textile production base (500 units) and is a leading supplier of cotton years to the world. All spinners are not angels. They have their failings. But in any case every year they earn foreign exchange worth $ 5 to 6 billion for the country or about 70 per cent of the total exports after adding value to the locally produced cotton, the mainstay of the economy. How the formidable textile sector is under foreign attack, a leading economist is of the view. The textile industry is being squeezed to put it on the sick list as a sequel to free trade in cotton without determining the size of the home consumption. As a result, out of a bumper cotton crop of 10 million bales, 2.3 million bales were sold to foreign buyers. The IMF officials say that the budget deficit figures are doctored as it was 6.5 or 7 per cent and not 4.5 or 5 per cent of the GDP as showed in the 1996-97 budget. The prime minister also says that the Central Board of Revenue has doctored the budget figures. Our rulers ask top business to talk to the IMF if they want reduction in taxes said a leading industrialist adding but why we should talks to them? We have decided to fight out the threat to the economic sovereignty alone. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960731 ------------------------------------------------------------------- Proposal to sell 5% IMFs gold for debt relief ------------------------------------------------------------------- Muhammad Ilyas ISLAMABAD, July 30: Interim Committee of the International Monetary Fund will consider in its meeting next September the proposal to sell up to 5 per cent of the Funds gold, or 5 million ounces, to finance its part in the Extended Structural Adjustment Facility (ESAF) and in a new initiative to provide debt relief to the worlds poorest countries. The current ESAF resources, says the latest issue of IMF bulletin Survey, are expected to last until about 1999. We are then faced with an interim period  between 2000 and 2004  for which the Fund does not now have resources to support on-going ESAF operations or to finance the latest initiative in collaboration with the World Bank. The sale of gold has been proposed by the IMF Managing Director, Michel Camdessus, to subsidise resources in view of the budget constraints faced by the bilateral donors. As, however, reservations have been expressed about using the IMFs capital base, the modified proposal provides that in selling gold, the profits from the gold sales would not be used; rather, the profits would be held and invested, and only the interest income would be used to help finance the needed subsidy. ESAF, according to the report, will form the economic policy basis for the IMFs operations in the proposed initiative which is likely to benefit 20 out of the 41 heavily indebted countries. However, ESAF in this operation would carry greater degree of concessionality than what is provided in other operations at present, it is asserted. These countries, explains the report, were in a situation where, even with strong adjustment and reform programmes and the benefit of current debt- relief mechanisms, their potential to service their external debt on an on- going basis appeared limited. The eligibility of countries for benefiting from this initiative would be, among others, a debt-service ratio (debt-service payments as a percent of export earnings) in the range of 20-25 per cent, and a present value of claims not exceeding 200-250 per cent of export earnings. Among the 41 countries, most of them in Africa, 8 have been categorised as unsustainable, and another 12 as possibly stressed. The remaining countries now appear to be in sustainable external debt positions, meaning that current mechanisms would be sufficient. Even among the approximately 20 countries that may be selected to benefit from the initiative, their eligibility would be assessed case by case. All the creditors  bilateral as well as multilateral  are expected to take part in the initiative which may even include write-off of some or all of their claims in respect of a selected country. From the Paris Club and other bilateral creditors, the initiative calls for stock-of-debt relief at the end of a prescribed adjustment period of up to 90%, instead of the 67% stock-of-debt reduction granted to date. The World Bank, according to the report, is considering providing additional assistance during the second three-year phase of adjustment, in the form of supplemental IDA allocations through grants. Similar mechanisms would be considered also in IMF. A country that pursues this second phase of adjustment, supported by a second three-year ESAF arrangement a Bank programme, will be promised relief from both bilateral creditors and from multilateral institutions in an amount sufficient at the end of that process to assure debt sustainability. This will involve a stock operation from Paris Club and non-Paris Club bilateral creditors. If commercial banks are involved, they would be expected to provide at least comparable relief as well. Multilateral institutions will commit to providing the additional assistance necessary to bring the total debt stock of eligible countries in net present value terms, down to the threshold level, that is 200-250% debt to exports, and a debt-service ratio no higher than 20-25%. The IMF would use either grants or highly concessional loan operations to bring about the desired reduction of the net present value of its claims, while the Bank and other multilateral institutions would use resources from a multilateral debt-reduction fund which would be funded from the Banks net income, from bilateral contributions, and possibly from other multilateral institutions. Bank management has already recommended that its Executive Board set aside $500 million this year for a special trust fund to be used as the Banks initial contribution. Helping them reduce their external debt burden to a sustainable level should help increase investor confidence and remove one impediment to growth. But these countries, stressed Jack Boorman, Director of the IMFs Policy Development and Review Department, in an interview with the Survey, also need to develop institutions of effective economic policymaking and address infrastructure development problems, as well as problems of governance. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960801 ------------------------------------------------------------------- Govt plans to establish national grid company ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 31: The government will set up a national grid company to purchase electricity from private power generation plants and supply it to different distribution networks which are being privatised, Chairman, Privatisation Commission, Syed Naveed Qamar said on Wednesday. Area Electricity Boards (AEBs) are being converted into corporate entities and are being actively prepared for privatisation, he told a press conference. In view of large scale operational problems in some of the AEBs, the government has decided to hand over management control to international companies, he said. The management control will be awarded to the reputed companies for a stipulated period of two years through a competitive process, he added. Mr Qamar did not deny reports that AEBs of Lahore and Gujranwala had already been handed over surreptitiously to an American company without following any competitive process. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960726 ------------------------------------------------------------------- KSE index breaks 1,500-point barrier ------------------------------------------------------------------- Staff Reporter KARACHI, July 25; The Karachi Stock Exchange index of share prices broke the barrier of 1,500 points on Thursday, signalling the extension of bear- run in the coming sessions. The index was last quoted at 1,489.42 as compared to 1,524.90 a day earlier, showing a loss of 35.48 points over the previous close and also the weakness of the base shares. A 35-point decline in the index means wiping out of the market capitalisation about Rs 7 bn and it is a big single session loss. The index has, over the week, lost about Rs 20 bn, pushing the total market capitalisation to Rs 333 bn from Rs 353bn, telling how the values are being eroded in each session. The market capitalisation was almost stable around Rs 385bn for the last about three months after the protracted bear-run overtook the market amid either-way movement but seldom breach the barrier of Rs 370bn. But heavy liquidation in the index shares over the last about four weeks has pushed to new low levels and there are fears that it might breach the Rs 300bn barrier during the next month, dealers said. Analysts said the disturbing factor is that buying support is not coming at the falling prices as investors are progressively shifting investment to dollar and some other dollar-related modes of business. But this is very serious development as it points to the exit of foreign buyers from the market and needs to be checked, they added. The market decline was, therefore, again led by the multinationals under the lead of high-profile issues such as Lever Brothers, Brooke Bond, Hoechst Pakistan, Glaxo Lab, Colgate Pakistan, Singer Pakistan, Shell Pakistan and Siemens Pakistan, which suffered fresh fall ranging from Rs 2 to 5. Both the market leaders, Hub-Power and PTC vouchers also received heavy battering and fell well over Rs 1.50 instead of mostly fractional changes over the last about one year. It also reflected foreign unloading in them and evoked sympathetic selling on some other counters. PSO also maintained its downward trend and lost another Rs 4 followed by United Sugar, which fell Rs 4.80. Other notable losers were led by ICP SEMF, Citicorp, Adamjee Insurance, Gadoon Textiles, Dewan Salman, Gatron Industries and KESC, falling one rupee to Rs 2.75. Some of the shares managed to recover modestly, major gainers among them Telecard, Gillette Pakistan, Bawany Sugar and Bawany Air Products, EFU General Insurance, and Shafiq Textiles, rising by one rupee to Rs 10. The most active list was topped by PTC vouchers, off Rs 1.45 on 13.433m shares, followed by Hub-Power, easy Rs 1.75 on 10m, Southern Electric, lower 70 paisa on 0.597m, Dhan Fibre, easy 10 paisa on 0.491m and Dewan Salman, off one rupee on 0.440m shares. Other actives were led by FFC-Jordan Fertiliser, off 45 paisa on 0406m, Fauji Fertiliser, lower Rs 1.25 on 0.416m, ICI Pakistan, off 40 paisa on 0.413m, LTV Modaraba, lower five paisa on 0.210m and MCB, off 75 paisa on 0.151m shares. Trading volume swelled to 30.351m shares from the previous about 19 m shares owing to brisk selling in PTC and Hub-Power. There were 332 actives, out of which 199 fell, while 47 rose, with 86 holding on to the last levels. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960801 ------------------------------------------------------------------- Stocks remain in bearish frame of mind ------------------------------------------------------------------- Staff Reporter KARACHI, July 31: Stocks remained in a bearish frame of mind on Wednesday as investors were not inclined to make fresh commitments in the absence of fresh positive news from the corporate front. The opening was distinctly easy after the news of Lahore killing reached the rings but the midsession saw revival of demand on some of the pivotals and the consequent decline in selling. The KSE 100-share index ended with an extended decline of 26.17 points at 1,455.77 as compared to 1,481.94 a day earlier, sending signals that it could break the barrier of 1,400 possibly by the next week. The current favourites, notably Hub-Power and PTC vouchers after early decline did attract massive covering purchase after midsession limiting the index fall to 26 points. A 26-point fall in the index means a loss of Rs 4 billion in the market capitalisation, which has dropped by well over Rs 16 bn during the last four sessions, dealers said. An idea of investor willingness to hold on to their long positions may well be had from the trading pattern of PTC vouchers, which was massively traded amid alternate bouts of buying and selling. Although it managed to finish the session with a fractional rise of only five paisa after falling earlier on heavy selling, and also managed to limit further loss in the index owing to its heavy weightage in the 100- share index. Similarly, another leading current favourite, Hub-Power also came in for strong support from the institutional traders in a bid to put the market back on the rails but the attempt proved abortive. Heavy selling in Dewan Salman on news of a substantial loss for the last financial year blunted the sharp end if the market has one as it was marked down by Rs 4.70 on a business of about 3 million shares. All other polyester shares followed it and fell under the lead of Dhan Fibre, Ibrahim Fibre, and Indus Polyester amid active selling. Minus signs, therefore, again dominated the list, with some of the pivotals being in the forefront under the lead of PSO and Dewan Textiles, another share of the Dewan group of companies, which fell by Rs 41 for no apparent reason or heavy selling. PSO, however, suffered a biggest decline for the single session as it fell by Rs 17 to close at the lowest bid of the day at Rs 358 on a business of 28,000 shares. Over the last one month or so it has progressively declined from its recent peak level of Rs 404, reflecting the general market conditions and investors distaste for shares. The other big loser was Siemens Pakistan, which fell by Rs 25.50 on business of 600 shares. There was no negative news to which the sharp reversal could be attributed. Other big losers were led by Askari Leasing, ICP SEMF, Din Textiles, KESC and some others, falling by Rs 1.25 to 2.75. Other big losers were led by Wellcome Pakistan, Fauji Fertiliser, Engro Chemicals, Glaxo Lab and some others but Dawood Hercules rose after being ex-dividend at Rs 129 and finished at Rs 136. The board of directors of Paramount Leasing has announced a maidend dividend at the rate of 10 per cent for the year ended Dec 31,1995 but the news at a time when the market was in deeper recession and failed to evoke sympathetic buying in the leasing sector. Gainers were few, reflecting the general apathy. However, United Distributors maintained its upward drive on news of higher earning and ended with a fresh gain of Rs 2.50 and so did Kohat Cement and some others. PTC Vouchers topped the list of most active, up five paisa on 20m shares followed by Hub_Power, steady 25 paisa 8.161m, Dewan Salman, off Rs 4.70 on 2.933m, ICI Pakistan, easy 15 paisa on 0.554m, Ibrahim Fibre, lower 50 paisa on 0.282m, KASB & Co, up 15 paisa on 0.227m and LTV Modaraba, unchanged on 0.201m shares. There were some other active too. Trading volume soared to 35.329m shares from the previous 16.483 m shares thanks to heavy activity in PTC. There were 319 active, out of which 176 shares fell, while 53 rose, with 90 holding on to the last levels. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. 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EDITORIALS & FEATURES

960726 ------------------------------------------------------------------- The President Marshal ------------------------------------------------------------------- Ardeshir Cowasjee I WRITE about a very large piece of precious real estate, a large naturally rich country of 44 million very poor people, whose leaders, their spouses, and close cronies are very rich indeed. Zaire covering 2,345,410 square kilometres (as compared to Pakistans 796,095 sq km) was once known simply as the Congo until in 1885 it became the personal property of King Leopold II of Belgium when its name and style was changed to the Independent State of the Congo. In 1908 it became a Belgian colony which it remained until it was granted independence in 1960. In 1971, as the personal property of President Marshal Mobutu Sese Seko Kuku Ngbendu wa Za Banga (the all- powerful warrior who, by his endurance and will to win, goes from contest to contest, leaving fire in his wake) the Democratic Republic of the Congo became the Republic of Zaire (meaning river). Joseph-Desire (as he was originally named) Mobutu was born in 1930. He started life as a clerk in the finance department of the Belgian Congolese army and contributed articles to the Leopoldville Press. After his discharge in 1956, he became a reporter for the daily, LAvenir, and then the editor of the weekly, LActualities Africaines. He joined Lumumbas political party soon after its founding in 1958. The day the Congo gained its independence in 1960, the coalition government of Kasavabu and Lumumba appointed Mobutu chief of staff of the Force Publique (the army) and eight days later that force mutinied, which led to the secession of Katanga and the power struggle between Kasavubu and Lumumba. Lumumba was murdered, Kasavubu took over and in 1961 appointed Mobutu commander-in-chief of the armed forces. In 1965, Mobutu got rid of Kasavubu and took over the presidency. Thirty-one years later, the former sergeant now self-styled Marshal remains President. He has worked hard at draining his country and amassing his personal fortune, now estimated to be in the region of $ 5 billion. As a rule, less than a third of the value of the countrys goods and chattels and exports, and whatever else, is returned to the treasury  the exporters and the intermediaries are worthy winners of their Pride of Performance awards. The Presidents authority mainly rests on his control of key security forces, which totally ignore his government. The Civil Guard and the 15,000 strong Special Presidential Division (DSP) forces are exclusively under the tutelage of Mobutu loyalist generals. Both divisions are better disciplined and are paid with more frequency than the regular armed forces and the gendarmerie. The Civil Guard, a police force trained to use police measures as well as to combat terrorism, to prevent fraud in customs collections, and to maintain order, is independent in structure. Members of all the security forces prey on civilians without official rebuke. Undisciplined soldiers commit numerous human rights abuses and criminal infractions, including robbery, extortion and looting, on a daily basis. The modern sector of the economy collapsed in 1991, and many parts of the country have returned to barter systems in lieu of monetary exchanges. Civil servants and military have gone without pay for periods of many months. Subsistence agriculture is the mainstay of the economy and permits the country and the poor downtrodden people to just survive the lengthy crisis. Industry remains largely crippled. Lack of new investment, poor roads, infrastructure and corruption  which affects all segments of the economy  have contributed to the decline, especially in the profitable mining and minerals sector. Easily smugglable diamonds and offshore oil revenues constitute the countrys major source of foreign currency. Mobutism is the national philosophy of Zaire. His name is sung in popular songs, his sayings are recited. But the 44 million people have no great fondness for him; they are merely doing what they are told and paying homage to their chief. On the day the country is rid of him, they will curse his name, burn his pictures, and pay allegiance to a new chief. Mobutus excesses are extravagant. His overseas bank accounts are stuffed with pilfered funds and his loyalty and concern is distinctly self-centred and has nothing to do with national advancement. When he came to power, Zaire was a country on the move and Mobutus response was to set out on a spending orgy that made economists heads whirl, and to single-mindedly pursue personal prestige and national grandeur. On the human rights side, his record of excesses are also extravagant. There is no respect for the integrity of the person, political and other extrajudicial killings are rife, people frequently simply disappear; torture and degrading treatment in custody are the order of the day. Arrests and detention are arbitrary, and fair and public trials are denied. Journalists and other media officials are intimidated, harassed, and detained at the whim of the authorities. Through it all, Marshal Mobutu insists (convincing those who allow themselves to be convinced) that Zaire and its people are doing fine and that the problems Western journalists write about are all illusory, merely exhibiting their medias bias against Black Africa. The hospitals cannot treat the sick for want of medicine, the schools cannot teach the children for want of books. The evil Marshal, who leaves fire in his wake, achieves it all with the greatest of ease, having perfected the art of bribery and the splintering of the opposition, and having over the years completely demoralised, subdued and politicised what counted for the semblance of his countrys judiciary. The United States, as it must do in its own supreme interests (Tis our true policy to steer clear of permanent alliances with any portion of the foreign world  GW, farewell address, 1796), continues its diplomatic dance with Zaire. In the 1970s there were debates in the US Congress about Washingtons cosy alliance with Mobutu, but the official line was that Zaire was economically and strategically important, that it was a counter- balance to growing Soviet influence in Central Africa (as in the 1980s Pakistan was considered to be against growing Muslim fundamentalism), and that Mobutu, a staunch anti-Communist (as is Benazir considered to be a staunch secularist) should be supported regardless of all shortcomings. Consequently, Zaire in the late 70s received nearly half of all aid money the Carter administration allocated for Black Africa. Was Washington helping a country develop, or was it merely buying the loyalty of an autocrat? The tempo has since changed. Washington deliberately kept the post of ambassador to Zaire unfilled for a two-year stretch and since 1992, except for humanitarian aid to private organisations, no US assistance has been given. However, the recent appointment of an ambassador and the double- speak uttered by a State Department spokesman clarifies current US policy: Mobutu is the chief obstacle to democracy in Zaire, as such he has the key role to play. We are encouraging him and all the key members there to adopt the reforms necessary for democracy. To which, Zairian Professor Georges Nzongola-Ntalaga, from the safety of Howard University, sharply reacted: It does not make any sense to see Mobutu both as an obstacle and a force of democracy. There can be no move towards democracy with Mobutu in the way. Inflation soars by the day. It ran at the figure of 370% during 1995 and is estimated to exceed this figure in 1996. In 1993, a new currency was introduced. The new Zaire was created which was equal to 3,000,000 old Zaires and a dollar could be bought for 1,194 Zaires. By December 1994, the dollar cost 3,275 Zaires, in August 1995 it could be bought for 16,700 Zaires, and in May of 1996, one dollar cost 35,000 Zaires. But then, such has to be the state of affairs when uneducated selfish leaders rob with a will and there is no counter-force to check their greed. When nasty old military dictator Zia fell from the sky in 1988, making way for democracy, we could buy a dollar for around Rs 20. Now, thanks to the virtues of our freely and fairly elected democratic leaders, it costs us double that amount. Relatively speaking, as colonialists go, the British were fair and square. They left us with values which we have since lost. Led as we are now, and surrounded by well meaning friends as we seem to be, what is there to prevent us from going down the river, the Zairian way? Is the President Marshal able to further tutor our leaders in the ways of safe investment? And what can we, the faint-hearted 130 million, say to the famished 44 million that will encourage them to stand up for their rights? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960727 ------------------------------------------------------------------- Living in limbo ------------------------------------------------------------------- By Mazdak WHEN did you last hear of a Pakistani scientist or engineer conceive, invent or design something new, something that extends the horizons of human knowledge? Apart from the officially neglected Dr Abdus Salam  the only Nobel laureate for any of the sciences in the Muslim world, Professor Salimuzaman Siddiqui, Dr Parvez Hoodhboy and Dr Ata-ur- Rehman, I cannot think of a single innovative and original Pakistani scientist. In fact, we can draw depressing parallels with the rest of the Islamic world where the same intellectual inertia exists. How many patents have been issued to Muslim inventors? How many scientific or mathematical theories have been propounded by Muslim scientists? Even our so-called nuclear research at Kahuta is derivative and imitative. Take even the most mundane research that has immense and immediate relevance to much of the Islamic world, and we find that it is taking place in the West. For example, research into alternative sources of energy like solar power and wind energy could greatly benefit us, and yet what have our scientists and engineers achieved in this field? Or take desalination of sea water, or even agriculture in saline or semi-desert areas. We have made absolutely no progress, waiting instead for European (or Israeli) scientists to give us solutions on a platter. Last year, the World Bank suggested a number of economy measures to the government. One of these proposals was to shut down the Pakistan Council for Scientific and Industrial Research. When made public, this idea was greeted in the Press with shock and horror. In fact, it was viewed as a Western plot to sabotage research in Pakistan. And yet, if objectively analysed, the output of the PCSIR over the years does not exactly inspire confidence in the work being done in its laboratories. To a great extent, this is not the fault of the Council staff: starved of funds, the budget barely allows for salaries and utilities. But the problem Pakistan and the entire Muslim world faces goes far deeper than the mere shortage of funds: in many countries not afflicted with our atrophy of the creative faculties, most genuine scientists would take their training and talents to institutions where they are put to good use. Here, they stay on for the sake of security as well as the fact that they have few options. Ultimately, they become time-serving careerists who have more in common with bureaucrats than with scientists. The last decade has witnessed a remarkable growth in computer and communication technology. How many Muslims have been at the cutting edge of this change? True, one or two Pakistanis have done well abroad in marketing computers and related products, but to the best of my knowledge, nobody from this part of the world has made any significant contribution to the rapid transformation which is changing the way we think and live and work. Once again, the world is sprinting ahead, leaving the Muslim world far behind. For centuries now, we have been reduced to the role of users of technology developed elsewhere: nobody, including ourselves, expects us to be inventors and innovators. Clearly, the problem transcends the shortage of resources: several Muslim countries are raking in  and squandering  billions of petrodollars, and they could easily afford the costliest research equipment. But scientific breakthroughs first take place in the mind, and it is here that we lag behind. What we have lost somewhere along the way centuries ago is the sense of wonder, the burning curiosity that lie at the heart of scientific inquiry. This quest for pure knowledge for its own sake is driven by a refusal to take anything for granted, and to question the most fundamental assumptions. By separating the state from religion, secular societies have permitted and encouraged citizens to question, criticise and attack the state and the social order without in any way involving the belief system. Extended to the scientific establishment, this translates into young researchers bending their efforts towards constantly picking holes in officially endorsed theories without losing their jobs. At a lower level, students questioning their teachers on everything under the sun without being threatened with expulsion. To field these queries, professors have to be well prepared. This constant ferment leads to a dialectic that results in a restless drive towards exploring the frontiers of knowledge. It can be  and has been  argued that change for its own sake is detrimental to social stability; indeed, many Eastern societies have stagnated for centuries because of this very assumption. Here at home, we are caught in the dichotomy of wishing to make material progress while at the same time preserving intact our exploitative social order and decaying traditions. Unable to resolve this fundamental contradiction, we are trying to prevent the winds of change from blowing away the cobwebs in our minds while simultaneously paying lip-service to the need for scientific advancement. This is in no way meant to suggest that in order to make progress, we must give up our culture. However, we will have to discard the irrational and unscientific attitudes that currently dominate the national psyche. The highly successful and competitive Pacific Rim nations have transformed themselves within a generation by ensuring education and health care for all their citizens, and by limiting their population growth to a reasonable and sustainable rate. At the same time, they are investing heavily in research and development. We are doing neither, and yet our fatuous leaders never tire of announcing that we are going to join the ranks of the Asian Tigers any moment now. Basically, the rational approach consists in analysing issues objectively and solving them using the tools of logic we have developed and internalised. We in much of the Islamic world find this an uncomfortable attitude towards life as it demands constantly questioning the status quo. We would rather live in the past, dreaming dreams of past glory. Our religious luminaries have a vested interest in keeping the masses as backward as possible so that they can retain their grip on their benighted intellects. Feudals want to keep progress at bay so that they can maintain their lock on power. The monarchs and dictators who rule most of the Islamic world certainly do not want aware and educated citizens to question their right to govern. With all these interlocking interests striving to keep their people in the dark, it is little wonder that scientific progress is virtually non-existent. Away from complex and expensive laboratories, the scientific approach I am talking about also includes the schoolboy opening up his alarm clock to see how it works; the eccentric inventor tinkering in his garage, devoting years of his life and all his savings in developing a gadget which may have no practical use; the amateur astronomer examining the stars from his backyard through his small telescope, dreaming of discovering a heavenly body which will be named after him. How many of us engage in these time- consuming tasks just to satisfy our own curiosity? Until we in the Muslim world regain our sense of wonder and stop taking things for granted, we are condemned to remain in limbo, inhabiting the backwaters of human progress. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960728 ------------------------------------------------------------------- The Marcos syndrome ------------------------------------------------------------------- Ayaz Amir WHAT is the source of the anguish eating into the hearts of Pakistans thinking men and women? The short answer to this is that they are worried not so much by the skyrocketing prices of daily necessities or even by Mr Jafareys budget as they are by the absence of any direction in the nations affairs. Where are we headed? What kind of a Republic are we trying to build? What are our national priorities? To these questions there are simply no answers because what is being seen on the national stage is a series of plundering expeditions carried out in the name of democracy and power. Forget about the clichi that this is not what the country was created for. In no country of the world, not even in a Haiti ruled by the likes of a Duvalier, will it ever be publicly acknowledged that the purpose of government is the systematic plundering of national resources. Yet since my generation at least entered the portals of manhood, this is what we have been seeing: politics and power being used as instruments for self-enrichment and personal aggrandisement, there being no exceptions to this rule since military men and civilian leaders have followed the same path. Stalin, forget about his other faults, had few personal belongings at his death: no more than a few suits and a couple of military uniforms. Ho Chi Minh was a latter-day saint: perhaps too austere for our tastes but for all that a model of self- denial and self-abnegation. Castro enjoys the good things of life but the legacy he will leave behind is the Cuba he and his comrades have created and not any personal possessions. If these examples be considered as too esoteric in the American-dominated world of today, consider a few others. Attlee had to write newspaper columns to supplement his pension when he was no more prime minister. Wilson during his long illness had to depend upon the daily allowances he got as member of the House of Lords in order to make both ends meet. Churchills estate at his death was not valued at more than a million pounds. Even the Clintons will have no vast personal fortune to fall back upon when they leave the White House. But consider the Marcos or the Mobutu syndrome (Ardeshir Cowasjee having written on the latter only a few days ago) which is to be found in all its glory in tinpot dictatorships and Third World basket cases. Where this affliction stalks any country, power becomes an end in itself: wielded not for the public good but for lining ones pockets and amassing huge fortunes abroad. Marcos plundered the Philippines as Mobutu has plundered Zaire and brought a rich country to the verge of chaos and disintegration. But then Marcos and Mobutu are only metaphors in this argument. They represent a tendency which is to be seen in all countries with a wayward destiny. But even if the gods have a hand in this misfortune, the Marcos syndrome does not cease to amaze. Power is a great gift because in the right hands it is the foremost instrument of ordering or re-arranging human affairs. This aspect of power puts it above even music and poetry. Nowhere in Napoleons correspondence is there a mention of Beethoven or Goethe who were his contemporaries. But Beethoven dedicated his Eroica Symphony to Napoleon (only to erase the dedication when Napoleon crowned himself emperor) and Goethe speaks with awe of Napoleons almost superhuman energy in his Conversations with Eckermann. To mention these events is merely to indicate the position that the man of power has held throughout history. Another example should serve to clinch this argument. For all the genius of ancient Greece, the high point of Greek civilisation is still remembered as the Age of Pericles, after the name of its greatest statesman. And this precisely is where the matter falls because for power to create an impact on human existence it must be accompanied by vision and statesmanship. Consider then our predicament where power has been turned into a sordid thing, an instrument for amassing wealth that an ordinary shopkeeper or tradesman would envy. If there is a vision which walks the halls of power in the Islamic Republic it is not of Pericles or of Akbar (the very thought touching the heights of absurdity) but that of Duvalier, Marcos and Mobutu. That this should be so is a measure of our national tragedy because there is nothing in Pakistans stars which condemns it to be a tinpot land or a basket case, a Haiti or a Burundi. Judged by the usual standards, it is a large country with human resources that, given the right prodding, can hold their own with any other on the face of the earth. South Asians are considered high achievers in the intensely competitive environment of North America. There is nothing in their destiny which condemns them to be low achievers in their own homelands. Given these circumstances, is it all that far-fetched to say that the gift of power in our country is a great privilege on whomsoever it is bestowed? Yet look how this privilege is being exercised: not for the public good as it should be but for personal pomp and glory. That unappeasable greed is at work here is obvious. But in the shadows of this greed there also lurks a terrible sense of insecurity. It is as if power is a watery thing and the common good a mirage, of meaning only for lost travellers in the desert. What matters above all, and that which gives significance to power, is to insure against the future which is best done by grabbing what one can and by taking commissions on the rest. This in essence is the Marcos or Mobutu syndrome which has the Islamic Republic in its vice-like grip. If there seemed to be some escape from this affliction, thinking men and women in Pakistan, while suffering the present as best as they can, would look to the future with hope. Pakistans current tragedy is that it has well nigh exhausted the vast reservoirs of romanticism with which it was born. Every experiment in the constitutional book has been tried but stability continues to elude us. Every political choice on offer has been tried with the only result of all this striving being that over the years the Marcos syndrome has been buttressed with pillars of iron. Today to no ones surprise the business of government stands discredited as never before. Admittedly, there is much that is vibrant in this country. Step into the countryside or any small town and you will see the industry and spirit of enterprise which are keeping the wheels of national life moving. But what is thwarting the Pakistani people from realising their destiny and carving out an honourable place for themselves among the nations of the world are the uses to which the exercise of power has been harnessed. It is not that Pakistan is waiting for a Pericles. That is a fat hope indeed. But what can even now turn around its affairs (because, whatever doomsayers might say, we have still not crossed the point of no return) is just a modicum of sincere and honest leadership. Not revolution or drastic surgery  alternatives which people in drawing rooms are much enamoured of  because revolutions do not come from the skies and they have to be worked for with blood and sacrifice. Just a modicum of honesty and integrity. Yet consider the Pakistani predicament that even though so little is needed to bring about a healthy change in the nations affairs, even that little is not forthcoming. All we seem to be getting instead are variations on the Marcos syndrome: great greed allied to supreme incompetence. The budget, the Mirages whose acquisition will surely be the last straw on the economys back, the growing lawlessness in different parts of the country, the problems with the judiciary, and the other things which fill newspaper space are all items in the sum of the nations distress. The principal problem is one of national direction. Once that is hostage to the ghost of Marcos and the living example of Mobutu, it becomes a daunting task to struggle against other infirmities. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960731 ------------------------------------------------------------------- Terrorism ------------------------------------------------------------------- Omar Kureishi THERE is no cause, no passion that is so stupendous in its righteousness that it can justify terrorism, leave alone venerate it. There is no valour in killing innocent men, women and children, no honour, no rewards here or hereafter. Terrorism is the political name that is given to mass murder but what makes it different to murder is that it is random and targets the luckless, those who happen to be in the wrong place at the wrong time. Terrorism is indiscriminate in its callousness and even worse is cowardly. The man who planted a bomb in the lounge of the Lahore Airport may himself have been deranged or programmed for even hired killers are generally not so barbaric. But since it was a meticulously planned, cold-blooded operation those who were masters of the deed were professionals, an anonymous group of men carrying out the murder, or attempted murder of anonymous victims. Terrorism is the most impersonal of crimes, there is no interaction between the perpetrators and the casualties, not even a nodding acquaintance between the killer and the killed. In war, at least, the enemy is clearly defined and those who fall upon the battle field can be said to have laid down their lives for their country. No such citation is available for the mangled bodies and debris from a terrorist bomb. That there was a security lapse at the Lahore airport is stating the obvious. Whether an airport can be made wholly safe is something else. An airport is a public place and cannot be sealed off. Not only does it get thousands of visitors but hundreds of people work there. This is not to absolve the agencies concerned of laxness. Indeed, the instant reaction after the bomb blast was an attempt by the agencies to shift responsibility, in itself a sign that the security system is riddled with imperfections. Any visitor to an airport will be made aware of the overbearing manner of the security staff but to be over-bearing is not the same as being vigilant. Purely as an aside, it has not struck the VIPs that their lounges are the most vulnerable, crowded as they are with a legion of flunkies who invariably come to receive or see a VIP off. No one dare check them! But the terrorists know that airports, bus stands, railway stations, markets, hospitals, mosques, wherever a large number of people are apt to congregate are soft targets. It is impossible to secure them. Are we then helpless? Im afraid we are, as are people all over the world where the terrorist wages his mad war. What is possible, however, that these acts of terrorism should be condemned outrightly and unreservedly, without any ifs and buts by all sections of the public including political parties irrespective of their differences. An act of terrorism is an assault on Pakistan itself. Thats the only way to see the outrage of the bomb blast at Lahore Airport. Unfortunately, the temptation to politicise these bomb blasts is too great to resist and it has become almost de rigueur, a standard knee-jerk reaction to score political points even before the dead are buried. It is sad, as it is infuriating, that instead of uniting the people so that there is a common resolve to combat terrorism, we begin to stone each other with agitational platitudes and provocative pieties, blaming each other after lip-service has been paid to condemning the hidden hand, I find it astonishing to read that some opposition members have called for the resignation of the government, the ostensible reason being its failure to protect sensitive areas like airports and for good measure, almost as an after-thought, the lives of poor people. What is the connection? How does one follow from the other? It would have made sense had a blue-print of a water-tight security system been offered or it could have been satisfactorily proved that something like a bomb blast would not have occurred had they been the government. Should John Major resign because his government has failed to stop the IRAs campaign of terror? Tony Bair would be laughed out of the Commons were he to make such a demand. Should Bill Clinton have resigned because a group belonging to some lunatic-fringe militia blew up a government building in Oklahoma City or because TWAs flight 800 exploded in mid-air killing 230 people? What about the security at JFK Airport? The Republicans are not making hay. There are any number of issues on which the government and the opposition have different views and perceptions. We are not short of areas of disagreement and perceptions. In a democracy, it is perfectly legitimate to take the government to task. But there is a no-go area or should be that comes in the category of the national interest and it is expected, if not incumbent on all to make common cause. We are not that strife-torn or so utterly divided that we cannot close ranks on something as evil as terrorism. Why not an All Parties Conference with a single item on the agenda  terrorism and how best to combat it. The message to our enemies would be loud and clear. Sometimes it is possible to raise the level of politics to the heights of statesmanship. And that is when we accept the geometric fact that no part is greater than the whole. It does not matter whether the initiative for such a conference is taken by the government or by the opposition. It would be welcomed by people from all walks of life, particularly since the victims of terrorism are likely to come from these walks of life. And if these terrorist acts are the work of a hidden hand, it might be a good idea to start nabbing a few of the culprits. We must not give the impression that we are clueless, in both senses of the word!

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SPORTS

960726 ------------------------------------------------------------------- No worthwhile moves made By Pakistani attackers ------------------------------------------------------------------- Anwar Ahmad Khan Former Olympian Pakistan faces the prospects of missing the semi-final line-up, after the second successive loss in the Olympic hockey tournament in Atlanta. After being beaten what should be called by a wide margin by Spain, the green- shirted Pakistanis have gone down to Germany. With just a couple of points from three games against their name, Pakistan now has just an outside chance of reaching the semi-finals. Yet Pakistan cant be written off. It has been a tradition in Pakistan hockey to come from behind and win the championship against all odds. There have been numerous occasions when Pakistan has ran away with the top position, after a rather shaky start. The Pakistanis were planning to pack up in the inaugural World Cup in Barcelona, Spain, in 1971, when Japan stunned Holland and Pakistan was allowed to move into the semi-finals. Pakistan went on to win the first World Cup. The story was not much different in the 1984 Olympics at Los Angeles. By restricting Holland, Kenya paved the way for Pakistan to come back into the reckoning. And Pakistan proceeded to claim the gold medal. Pakistan once again needs a miracle in Atlanta to take them through to the victory stand. If Pakistan is destined to win, nobody would be able to stop them from doing so. Argentina can surprise Germany or even USA can blow a whistle upon a couple of its fancied rivals to create an opening for Pakistan. It has happened in the past and theres no reason why it cant happen once again. At the moment Pakistan is placed fifth in the group, with only hosts USA behind. Spain, the giant killers, stay on top in Group A with three successive victories while Argentina is positioned at number two. India and Germany have three points each from as many games but the former stay ahead in the points table due to better goal difference. Pakistan played better against Germany, the defending champions, than they had done against Spain a couple of days ago. But Pakistan were not good enough to overcome the win-starved Germany. Germany was under tremendous pressure, after having claimed just one point from their first couple of matches. They needed to defeat Pakistan in order to stay in the hunt for one of the medals. They achieved their objective by sound planning. Germany was successful in dominating the game, particularly in the second half, they gave very little away. In fact they were able to dictate terms after the break. I believe that the Germans were capable of playing even better. In my opinion, they played only up to seventy percent of their potential. Pakistan made Germanys task easier by not playing up to the mark. The Pakistan forwards, frustrated by the strict man-to-man marking, failed to come up with any worthwhile move. They could not initiate combined movements, which could have tested the German defence. Pakistan should have changed their strategy, when they were trailing. They had to attack the Germans in order to upset their gameplan. But as it turned out, the Pakistanis did not look threatening in their attacks due to the negligible support of their half-line. It has always been advisable to exploit the right half or centre-half as the sixth forward, when the objective is to make inroads into a packed defence. Since so such effort was made, the Germans were happy in keeping the possession of the ball. Centre-half Muhammad Khalid was not found up to the mark. I was expecting right-half Muhammad Usman, who had performed admirably in the World Cup, to rise to the occasion but he has been a disappointment so far. Left-half Irfan Mahmood has also been struggling to make his presence felt in the field. I believe that Khwaja Junaid would have still performed the duties of a half back more skilfully than these guys. Then I have failed to understand the logic behind the omission of right out Asif Bajwa, who could have proved an asset for the side. He was trained for this job for three years but was not chosen for such an important competition. In the absence of genuine wingers, the Pakistan forwardline had very little chance of forcing a breakthrough. Pakistans spearhead Kamran Ashraf, who is basically a dasher, did not get the kind of openings he was looking for. Neither the wingers sent in crosses to him nor the inners fed him properly. Another strong point of Pakistan in the past has been attacking the opponents through the right trio. This could not function in the desired manner. It was amazing to see a seasoned player like Tahir Zaman missing a penalty stroke in such an important game. He looked disturbed at having thrown away the golden chance and it would have been in the interest of the team to have rested him for ten minutes or so, taking advantage of the rolling substitution rule. Shahbaz Ahmed has looked just a shadow of his own self in this particular tournament. Muhammad Shahbaz has yet to show his top form. Goalkeeper Mansoor Ahmed, who is also the skipper of the team, did save a penalty corner against Germany but he will have to perform even better to inspire his team. Pakistan has to win both its remaining league matches handsomely to stay in the tournament. Both India as well as Argentina could prove to be tough opponents so Pakistan will have to perform exceptionally well to overpower them. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960728 ------------------------------------------------------------------- Pakistan played much below expectations ------------------------------------------------------------------- Anwar Ahmad Khan Former Olympian Pakistan and India played out a goalless draw in the Atlanta Olympic Games pool match on Friday. The nature of the result between the two countries was for the first time in international hockey since the final of the 1958 Tokyo Asian Games. And like the late Pakistan inside-left Nasir Ahmad Bunda drew out the then Indian goalkeeper Shankar Laxman from his charge, his subsequent effort from point blank range unluckily went a trifle wide to keep the slate clean. This time around, Indias centre-forward Dhanraj Pillay connected a right winger Mukesh Kumar cross. However, he had to look up to the heavens in disgust as the ball hit the near post and rebounded into play for an identical scoreline. It was the second occasion in Atlanta that Pakistan and India were engaged in a drawn skirmish. The last time was in the pre-Olympic tournament held in the month of April when the game ended in a two-all stalemate. Pakistan had a highly experienced outfit in comparison to Indias, and as the reigning world champions, started out as favourites to win the tussle. But if that was not to be, it was simply because Pakistan played much below expectations. To begin with, it seems strange that Pakistan benched its regular left back Naveed Alam, who also is pretty good in conversion of penalty corners, for the all-important encounter. He was replaced in that position by Rana Mujahid Ali, who has over a considerable period of time been playing as a right back. If one man who stood out in the entire Pakistan defence it was young right back Danish Kalim. He was workmanlike in his approach and had an outstanding game. Besides, his two penalty corner strikes of the four Pakistan were awarded in both sessions, found the target but were disallowed for not hitting the 18-inch board. The Pakistan half-line comprising Mohammad Usman, Mohammad Khalid and Irfan Mahmood were as usual listless and did not go up in support of their forwards. But if there was one silver lining, it was the grand spoiling role feigned by left half Irfan Mahmood who completely bottled up Indias right winger Mukesh Kumar. Coming to the Pakistan forwardline, the two new wingers Mohammad Sarwar and Aleem Raza looked completely out of their depths at this level and are in dire need of plenty of international exposure to come up to the required standard. In a way, I expected a great deal from Mohammad Shahbaz, who was inducted as the playing inside-left for the first time, but I am sad to say he did not live up to the billing of former coach Manzoorul Hassan, who is on record, having said: We have found another Shahbaz Ahmad. Inside-right Tahir Zaman was altogether off-colour and when he was substituted by Rahim Khan, the Pakistanis found some rhythm in their attacks. A few chances were created but were muffed by Kamran Ashraf, Mohammad Shahbaz and Shahbaz Ahmad. In crunch matches such missing is simply unpardonable. Reverting to Indias game, it more or less assumed the same pattern as Pakistans. The defence was rock solid and held the Pakistan forwards at bay for most part of the proceedings. Nevertheless, India can feel proud of the fact that they have a splendid left half in the making in Ramandeep Singh. He has a classic feeding style and is also good in busting up a onslaughts in its bud. Indias reliance on centre-forward Dhanraj Pillay to deliver the goods faltered as he did not play in his position but kept inter-changing on either flank. To add to that, he is not in the same class like former Indian greats. Right winger Mukesh Kumar was the other man whom India largely counted upon. But only one flick pass to Dhanraj had the stamp of authority written all over it. Although, there was a light shower in the first half the weather was very pleasant for hockey. Even though, both Pakistan and India played with the traditional Asian flair with fluency of movement and without man-to-man marking, but lacking were the thrilling moves witnessed in a number of epic past Pakistan-India ties. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960731 ------------------------------------------------------------------- Pakistans dramatic win in Lords Test ------------------------------------------------------------------- Qamar Ahmed LONDON, July 30: Waqar Younis and Mushtaq Ahmed, Pakistans formidable pair of pace and spin attack, cut to smithereens Englands batting line-up to give Pakistan a 164-run triumph on the last day of the first Test on Monday at Lords. The England overnight batsmen, Mike Atherton and Alec Stewart, resisted firmly and with assurance up to the lunch time. However, after resumption Mushtaq struck twice to dismiss both captain Atherton and Stewart with the help of substitute fielders, who took excellent catches. Then the procession started and the writing was lurid on the wall. Englands inevitable defeat came shortly after tea time. Pakistan have gone one up in the series with captain Wasim Akram confidently claiming that Pakistan would clinch the series in the second Test at Headingley, starting on Aug 8. Once the second wicket stand of 154 between Atherton and Alec Stewart was ended after lunch, England defences fell into bits as wickets fell and their batting succumbed. The last nine wickets fell for the addition of only 75 runs and that too because of a 35-run desperate last-wicket stand between Ian Salisbury and Simon Brown. England having resumed the last day at 74 for one were well in control at 168, 20 minutes after lunch. Mushtaq Ahmed, having conceded only 35 runs in his 25 overs without taking a wicket despite some close calls for both Atherton and Stewart, then struck while bowling round the wicket. From the rough the ball spun taking the edge of Athertons bat in the slip where Asif Mujtaba substituting for Aamir Sohail took a fine catch. There was no stopping after that dismissal. Later Stewart could not get his bat away from a delivery which rared off his pad to the bat and in the hands of silly point Moin Khan fielding for Inzamam-ul-Haq. Their exit in quick succession, after Atherton had made 64 and Stewart 89, was what Pakistan looked for. There was no stopping them as the rest collapsed like a pack of cards and Pakistan clinched a well earned win just before a delayed tea break. Athertons 278 minutes vigil at the crease in which he had managed eight fours at one time appeared to have done the trick but trouble was in store soon after his demise. Nothing really can be taken away from Pakistan from their third Test victory at Lords in the last four Tests since 1982. It was a team effort in which everyone played his part. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960728 ------------------------------------------------------------------- Pakistan fail to reach semi-finals ------------------------------------------------------------------- Sydney Friskin ATLANTA, July 27: Nearly 15,000 spectators gathered at the Morris Brown College Stadium to witness the Olympic hockey match between Pakistan and India and went away disappointed that no goals were scored. There were those who appreciated the scientific possibilities of the game; others thought it was all so pointless, statisticians were busy looking up their records, attempting to find out when an Olympic hockey match between these two great countries had ended goalless. In short it was a match that promised much and achieved little. The upshot is that neither Pakistan nor India will qualify for the semi-finals in which Spain, after their 7-1 victory over the United States later in the night, made sure of their place in the last four from Pool A. Germany seem likely to accompany them. India more than Pakistan needed the two points at stake. Had they won they would have had a total of five with one more match to play against Spain they would have been in with a fighting chance with a total of seven points. If Pakistan had won they could at most have finished their engagements with a total of six points which would not have been enough. They could not pick themselves off the floor after defeats by Spain and Germany. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960801 ------------------------------------------------------------------- Botham, Lamb lose libel case against Imran ------------------------------------------------------------------- Athar Ali LONDON, July 31: By an overwhelming majority the jury in the High Court libel action brought by two former England Test cricketers, Ian Botham and Allan Lamb, against Imran khan gave its verdict in favour of the defendant. The jury rejected claims for damages made by the two plaintiffs who alleged that the former Pakistan captain in the media interviews cast serious aspersions on them by calling them both racists and questioning their upbringing. Botham also failed to convince the jury that Imran Khan had accused him of ball-tempering and of cheating. The plaintiffs will have to bear not only their own legal costs but also pay the cost incurred by the defendant with some adjustments made for the withdrawal of the `plea of justification made by Imran on the basis of two television clips from the 1982 Tests which sowed Botham handling the ball. Botham and Lamb will have to pay an estimated 500,000 pounds in total costs. It took the seven men, five women jury more than four hours to reach their verdict. When they returned to the court room, filled to capacity, the jury foreman told the judge, Mr Justice French, that they had reached a verdict. The court clerk asked the foreman whether on the action brought by Ian Botham and Allan Lamb together that in an India Today interview Imran Khan had accused them of racism and questioned their class and upbringing they were for the plaintiffs or the defendant. For the defendant came the reply in a hushed court room. The jury foreman was then asked if they had reached a verdict for the plaintiff, Ian Botham, or the defendant in the separate libel action brought by the England cricketer accusing Imran Khan that he indirectly accused him of ball-tampering which under the laws of the game amounts to cheating. A sigh of relief was breathed by Imran who for a few moments was unable to grasp what the jury foreman had said. His wife, Jemima, who sat next to him on the front bench in the court room, wearing a maroon-coloured maxi, did realise the importance of the moment and drew close to her husband. When it became clear that the verdict had gone for the defendant, Imran looked towards the courtroom ceiling with eyes almost full of tears of boy. He hugged his wife and a broad smile appeared on his face, and the pale complexion that he was wearing for the last two days due to tension soon disappeared. Outside the Royal Courts of Justice, where hundreds of people stood inside the railing set up by the police in the expectation of verdict in the case of the three cricket stars which had entered the 13th day today. Imran Khan said he had been vindicated. He thanked God almighty for it. The four-year-old ball-tampering controversy and the tabloid accusations made against Pakistani cricketers in 1992 of cheating were revived as witness after witness spoke about the ball-tampering controversy. Botham was accused of an obsession with Pakistan.. Imran with passion defended his position. He said he did not call anyone a cheat nor a racist. He was only trying to bring into the open the ball-tampering controversy. He found support from big names in the cricket world who said this has gone in for as long as cricket began and is now an accepted practice. The controversy will rage until resolved, as Imran said after and during the trial, but his thirteen day ordeal in court in full public gaze and the worry of the last two years when the libel action against him was brought has finally ended.

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