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DAWN WIRE SERVICE
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Week Ending : 01 August 1996 Issue : 02/31
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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
---------------------------------
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
---------------------------------------
The President Marshal Ardeshir Cowasjee
Living in limbo Mazdak
The Marcos syndrome Ayaz Amir
Terrorism Omar Kureishi
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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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960801
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Call to avoid deadlock : CJ wants govt to implement judgement
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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.
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960731
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Eight killed, 24 injured in Lahore gang feud
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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.
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960728
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Test ban treaty : US, India hold private talks
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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.
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960727
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Opposition okays plan to oust government
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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.
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960731
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India-Russia talk on new defence package
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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.
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960728
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US govt orders building of ultra supercomputer
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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.
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960726
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Pakistan, US plan to increase commercial flights
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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.
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960728
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Drug prices again raised by 38 per cent
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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.
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960727
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How to stop this mad rush
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*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.
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960727
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Options for textile industry: modernise or perish
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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.
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960727
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Is IMF interference desirable?
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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.
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960731
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Proposal to sell 5% IMFs gold for debt relief
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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.
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960801
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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.
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960726
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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.
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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.
-------------------------------------------------------------------
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960726
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The President Marshal
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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?
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960727
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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.
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960728
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The Marcos syndrome
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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.
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960731
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Terrorism
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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!
===================================================================
960726
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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.
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960728
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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.
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960731
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Pakistans dramatic win in Lords Test
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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.
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960728
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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.
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960801
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Botham, Lamb lose libel case against Imran
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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.
Dawn page