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DAWN WIRE SERVICE
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Week Ending : 01 February 1996 Issue : 02/05
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The DAWN Wire Service (DWS) is a free weekly news-service from
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General
..........Govt stonewalled on question of appointments in national carrier
..........Opposition again stages walkout from senate
..........ICFTU warns Pakistan on child labour
..........Privitisation income to be used to retire debt
..........Officials anxiety stops probe into assets
..........Bungling in motor registration dept.
..........Ghulam Hussain Unnar dies
..........Punjab CM accuses PML of blast
..........Terrorists killed in real encounters claim Babar
..........N.D..Khan asks MQM for strike on Feb 5
..........News and views of attack and N-test:
..........Troops trade fire along LoC
..........Delhi warned in strongest terms: Assef
..........Leghari rules out war with India
..........Bid to counter Prithvi threat
Karachi Carnage
..........MQM activist Bhoora killed among 8 shot dead
..........Agencies Killing MQM workers, says Altaf
..........Ishtiaq asks Leghari to help save nine workers lives
---------------------------------
Placing Sui above politics
PPL sale: opposition not based on sound facts
Rupee looses 8 paisa against dollar
Bank borrowing for budgetary support goes up to Rs41.2bn
IMF assured of cut in defence expenditure
CBR clarifies: advance tax also applicable to TDRs, SNDRs
Exporters, bankers clash on exchange rate fluctuation
Investors make fresh extensive purchases
Stocks rise across broad front as investors cover positions
KSE index suffers fresh setback
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Stare terrorism Ardeshir Cowasjee
Political power and the judiciary Ayaz Amir
Pakistan: No cause for dismay Irshad Ullah Khan
Blandishments for victory Editorial Column
Living upto commitments to IMF Sultan Ahmed
Recognition at last Editorial Column
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World cup mascot unveiled
Incentives for world cup players announced
PTV-PCB controversy re-emerges
TV row continues to cloud World Cup
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Exciting news about World Cup live Dream Team competition. To find
out more about the Dream Team competition please look at the end of
the issue.
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NATIONAL NEWS
960130
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Govt stonewalled on question of appointments in national carrier
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Mohammad Malick
ISLAMABAD, Jan 29: The governments uneasiness in answering any
queries involving army officers, or their kin, became evident when all
such questions in Senates question hour were stonewalled by the
treasury.
For the third time the government appeared extremely reluctant in
furnishing a reply to questions relating to the appointment of the son
and daughter-in- law of the military secretary to the prime minister
in the national carrier.
Anwar Bhinder had inquired Whether it is a fact that Kamran Quyum son
of military secretary to the prime minister and Mrs Sajida daughter-
in-law of the military secretary to the prime minister were inducted
in PIA in pay group 6 & 5 respectively, if so, the date of their
appointments, the pay fixed, the name of the selection board, the date
for inviting of the applications and the criteria for their selection
and the place of their present posting.
Exasperation was written large on the face of minister of state for
law, Raza Rabbani, as he promised to provide the information
directly to Sen Bhinder. But Sen Bhinder wasnt buying time, and
neither was the chairman of the Upper House. Concurring with Mr
Bhinders logic for declining the offer, Wasim Sajjad said the entire
House would like to know the answer and not Bhinder alone.
Upon hearing the chairs views, Mr Rabbani immediately changed tactic
and cagily emphasised that I dont want to be misunderstood, I said I
would try to get the answer by tomorrow. He also wanted the chair to
allow him more time for getting the information. But Mr Sajjad in no
obliging mood and ordered the question to be included on the list for
Tuesday, incidentally the last day of the current session as well. It
was a difficult moment for Mr Rabbani who, forever ready to take on
the opposition, clearly did not want to be bogged down in such a
delicate situation and thinking better of carrying the cross for the
defence minister, let go of the matter.
The other question pertaining to armed forces personnel was also
buried way deep at serial number 114 of the question hour list and
once again a simple question had remained inexplicably unanswered. The
MQMs Ishtiaq Azhar had inquired: Whether it is a fact that a few
retired army officers have been inducted into the secretariat group
recently, if so, their names, designations and experience and whether
it is also a fact that all rules have been relaxed while making these
appointments, if so, its justification.
Unlike the earlier question, the government did not even bother
offering a promise of a reply and the only one line reply proffered
stated that reply not received.
The strategy of stonewalling seemed to work for the government because
when Dr Sher Afgan did offer a reply to another question he only ended
up putting the government in an awkward position while personally, his
extremely insolent attitude earned him the chairs ire.
The clash was sired by a privilege motion moved by Fazal Agha who
contended that in the past, while replying to his question regarding
the grant of transit trade permits for Afghanistan, the government had
claimed that no permits had been issued. Whereas, replying to
another question by Sen Ibrahim some time later, the government
conceded that 3,400 such permits had been issued. He, therefore,
claimed a breach of privilege. Incidentally, the reply Fazle Agha had
referred to had been made by none other than Dr Afgan himself who was
standing in for the commerce minister.
It appeared as if the minister had suddenly seen red as he took it
upon himself to offer an explanation. He said as far as he was
concerned his reply categorically excluded the involvement of the
commerce ministry in the issuance of any such permit and he could not
speak on behalf of any other authority which may have issued these
permits. The commerce ministry has imposed a ban on issuing such
permits, he concluded in a dismissive tone. The reply led to a brief
haughty exchange between the minister and some opposition senators who
challenged the logic of one minister conveniently passing on the buck
to some other authority. At this point the chairman, too, decided to
join the fray and thats when the real action started.
Dr Afgan and Wasim Sajjad have locked horns in the past also over the
thorny issue of the government flaunting his orders for the production
of detained senators in the house, and that tension clearly translated
into the heightening of tensions from the word go. Mr Sajjad blasted
the minister for trying to absolve himself of the collective
responsibility of the cabinet by offering the lame excuse of the
commerce ministry not being involved.
When an equally harsh sounding Afgan reiterated his earlier stance an
irritated Mr Sajjad told him to sit down as he was himself confessing
to being ignorant about who had issued the permits and why.
The situation, destined for further deterioration, was somewhat saved
by the timely intervention of the leader of the house, Malik Qasim. He
assured the House that he would personally put the details before
the House and when the chairman wanted to put off the matter till
Tuesday he implored for an extension on the grounds that some of the
concerned ministers were not in town. I might not be able to get in
touch with them and, therefore, I do not want to mislead the House,
he said. By now the chairmans anger seemed to have dissipated and the
matter was put off for discussion at some future date.
The other date that could prove unsettling for the government was
proposed by Sen Tariq Chaudhry who wanted the next meeting of the
privileges committee to be held in premises where senator Saeed Qadir
is being detained by the government. He argued that since the
committee has to hold a voting for the election of its chairman, it
was the inviolable right of the jailed senator to exercise his vote,
a desire he had also conveyed in writing to the chairman.
Apprehending the governments determination in not complying with the
chairs ruling to produce the jailed senator in the House, Tariq
Chaudhry requested the chairman to take the committee to the jailed
senator instead. You have the power to do this and I hope you will,
he said.
A sympathetic sounding Wasim Sajjad immediately remarked: It can be
looked into. The chairmans reply must have made Raza Rabbani rather
uncomfortable because the unprecedented spectacle of a parliamentary
House committee holding its elections inside a jail are bound to make
news headlines.
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960131
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Opposition again stages walkout from Senate
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Mohammad Malick
ISLAMABAD, Jan 30: With the opposition maintaining an average of one
walkout a day, the practice seemed to have become an unofficial agenda
of sorts in the current sitting. In fact, two walkouts on the last day
of the session looked like a perfect finale.
The first walkout, as has been the norm, was led by MQM senators
protesting against alleged extra-judicial killings in Karachi while
the other was led by Raja Zafrul Haq condemning the practice of
legislation through ordinances. The government had laid six
ordinances before the House.
After a persistent hounding of the government and three rota days
later, opposition senators finally managed to extract partial
information regarding the PIA employment of the son and daughter-in-
law of the military secretary to the prime minister.
Raza Rabbani, informed the House that the issue of the two
appointments had been played up by the Press in the past as a result
of which the daughter-in-law had already resigned, while the son had
taken a long leave of absence without pay.
Claiming that the appointments had been made on merit, he nevertheless
stopped short of divulging details of the manner of the appointments
and other information relating to the identity of the members of the
selection board. The question was deferred once again for want of
details of the case.
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960126
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ICFTU warns Pakistan on child labour
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Shadaba Islam
BRUSSELS, Jan 25: International labour groups warned that they will
continue to campaign for an end to the use of child labour in
Pakistan.
The International Confederation of Free Trade Unions (ICFTU), has
called on the European Union to stop giving Pakistan millions of
dollars worth of trade preferences because of the alleged use of child
labour in the carpet, brick-laying, sports and other industries.
The European Commission is currently studying the complaint. Bill
Jordan, the ICFTUs general secretary told Dawn that his organisation
was not convinced that Pakistan was making a serious attempt to comply
with ILO standards.
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960129
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Privatisation income to be used to retire debts
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Bureau Report
LAHORE, Jan 28: The income to be raised from the sale proceeds of
privatisation of public sector units will be used to retire foreign
debt. This was stated by Privatisation Commission (PC) Chairman Syed
Naveed Qamar.
The government has earned Rs42 billion or so by selling public sector
units so far. The PC is expected to sell United Bank Limited, Bankers
Equity Limited, Pakistan Times, Mashriq (Lahore), Kot Addu and
Jamshoro Power Stations, Habib Bank Limited, Faisalabad Electricity
Board, Karachi Electricity Supply Company (KESC) as well as the
Pakistan Telecommunication Corporation (PTC) by the end of this year.
Most of these units will be transferred to the private sector before
June, Syed Naveed Qamar said. He said: The commission is not in a
hurry to sell public sector units. We are proceeding with extra care,
especially in case of the PTC, to keep the whole process transparent.
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960126
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Officials anxiety stops probe into assets
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Sabihuddin Ghausi
KARACHI, Jan 25: A wave of anxiety and uncertainty swept through the
government employees of grade 17 and above when the Federal Anti-
Corruption Committee (FACC) headed by Senator Malik Mohammad Qasim
sought from them the information about their assets, properties,
income and expenditure statements, resulting in cabinets decision to
terminate the process abruptly last month.
Mr Mazharul Haq Siddiqui, in his report to the cabinet, blamed FACC
for having misconstrued Government Servants (Conduct) Rules,
1994.The FACC circulated on Nov. 2 last a detailed proforma to all
ministries and divisions asking all the government officers of grade
17 and above to provide details of their assets, properties, income
and expenditure statement by Dec. 15.
The FACC regulations seek information from the government servants
about their properties and assets to ascertain a list of names of
corrupt officials who are living beyond their means of income.
The FACC was, however, authorised by the cabinet to get information on
demand contained in statements of declaration of assets in specific
cases of alleged corruption.
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960130
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Bunglings in motor registration dept
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G.D. Ghauri
KARACHI, Jan 29: The staff of the Excise and Taxation, Motor Wing
Department, has evolved new measures to fleece tax-payers of the
amount that had already been paid by them. It could not be ascertained
whether the government treasury also suffered losses owing to the
technique adopted in the department but the tax-payers are stated to
be certain to suffer losses.
The modus operandi of the staff handling computers in league with
their colleagues is that different entries are made in the computer
slips and in the registration books of vehicles regarding the period
for which taxes had already been paid.
The Registration Books where entries are hand-written about the amount
and the tax period are considered authentic by the Taxation
Department, the computer slips indicating details issued with them
become of secondary importance and carry no value if they are not
preserved properly by tax payers.
The computer printed slips only if preserved properly could counter
the wrong entries in the registration books and the tax payers might
save themselves from duplicate taxes for the same term they are likely
to pay.
If the tax payers are in possession of the computer slips, the
mistakes then could be rectified treating them as mistakes of human
error, otherwise, the faults would lie on the tax payers who are
bound to repay again, tax payers who suffered for no fault on their
part said.
Since there is rush of tax payers during the current month which is
the grace period for paying taxes for the next terms, such sort of
glaring mistakes were brought to the notice by tax payers. How the
staff members get rid of the tax payers is anybodys guess.
But such sort of alleged bunglings are reported daily by tax payers
who do not own computer slips to counter the staff, tax payers said.
The staff members usually affix stamps on the registration books on
entries of taxes and the period so that they could become ineligible
by tax payers and the matter thus could become disputable.
The signatures of the staff also appear ineligible sometimes, tax
payers said. It may be mentioned here that the department is hounded
by touts of all sorts who run in search of tax payers.
No senior excise officer was available after 12.45 to bring alleged
discrepancies to their notices to rectify them both in the interest of
tax payers and the government treasury.
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960126
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Ghulam Hussain Unnar dies
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H. A. Hamied
KARACHI, Jan 25: Haji Ghulam Hussain Unnar, a most controversial
politician and a strong opponent of the present government, died.
He died of cardiac arrest at the hospital where he was admitted with
heart problem, soon after his return from his hometown, where he had
gone for the first time in last 22 months after his release on bail by
the Supreme Court in an alleged case of sedition.
During his detention and after his release on bail, his medical
condition was very bad. Doctors had said that his heart was working
only 26 per cent and he needed transplantation but he was not allowed
to leave the country because his name was on the exit control list.
He had been in and out of the hospitals ever since he was released.
Mr Unnar remained in police custody for 22 months on various charges
framed under blind FIRs and in addition to being charged for
sedition about seven months ago. The sedition case was registered
against him by the Sindh government for he had written a letter to
President Farooq Leghari, complaining of delay in deciding his cases
by the courts and the present judicial system.
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960131
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Punjab CM accuses PML of blasts
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Bureau Report
ISLAMABAD, Jan 30 : Punjab Chief Minister Sardar Arif Nakai said that
preliminary investigations into the recent bomb blasts in the province
had revealed the involvement of Pakistan Muslim League.
We have arrested a few people involved in these incidents and will
soon arrest the main culprits. He asserted that the PML was fully
involved in these incidents.
Asked how he was so sure about the PMLs involvement when the main
culprits had not yet been arrested, Mr Nakai said I cannot disclose
all the details at this moment as I dont want the main culprits to go
underground.
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960128
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Terrorists killed in real encounters, claims Babar
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Bureau Report
ISLAMABAD, Jan 27 : Opposition senators, agitating against the alleged
extra-judicial killing of MQM workers, staged a third token boycott of
the current session while a defiant interior minister insisted that
real terrorists had been killed in real encounters.
In what has now almost become a routine pattern of opposition crying
foul and walking out in the wake of every killing of MQM workers,
Senator Ishtiaq Azhar raised the issue of the death of one Fahim
Bhoora in police custody, equating it to a cold- blooded murder by the
authorities. He lamented that instead of waiting for court verdicts,
the police were busy killing detained MQM workers and supporters.
The opposition charges were, however, dismissed as totally baseless
by an equally determined interior minister. Gen (retd) Naseerullah
Babar thundered that Fahim Bhoora was a terrorist and the other
arrested people are terrorists and shall remain terrorists, and as
long as Im the interior minister I will keep calling them so. He
said there was no truth in the charges of fake encounters, pointing
out that over 200 members of law enforcement agencies had so far been
killed in operations. You dont get these figures in fake
encounters, he said, adding, when armed terrorists attack law
enforcement agency personnel, they must retaliate.
Commenting on the Bhoora incident , Gen Babar said the terrorist had
jumped to his own death from an unguarded window of a high building,
and added that a judicial inquiry has already been launched into the
incident.
Dubbed Gen Jabir by his detractors, the interior minister made no
efforts to sound appeasing to the opposition or appear accommodating
on the question of the ongoing police operations in Karachi. He said :
I have been acting with a clear conscience and a deep conviction
that I am taking the right action.
An unruffled Gen Babar went on to state that the government did not
believe in the persecution of any particular ethnic community but that
the operations were aimed at rooting out the lawless elements.
He said the opposition did not defend any form of terrorism,
including state terrorism, but that it wanted the institutions to
play their due role instead of Gen Babar making the whole thing into
some personal affair.
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960131
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N.D. Khan asks MQM for strike on Feb. 5
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ISLAMABAD, Jan 30: Law Minister Prof. N.D Khan has said that the
rocket attack by India in Forward Kahuta was out of sheer frustration
on their part.
He called upon all the political parties to condemn the Indian attack
and show complete solidarity with Kashmiris on February 5 the day of
solidarity with Kashmiris.
If the Altaf Group wants to give a call for strike, they should
choose Feb. 5 and make sure there are no terrorist activities on that
day. This would be a great show of harmony with the Kashmiri
brethren, he added.
The law minister said that MQM and the leader of the opposition should
condemn the Indian attack. Kashmir problem is an issue which does not
concern any individual but the whole of the nation.
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960128
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Troops trade fire along LoC
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Nasir Malick
FORWARD KAHUTA (Azad Kashmir), Jan 27: Indian and Pakistani border
security forces traded gunfire in disputed Kashmir region as thousands
of people in this small hilly town mourned the death of 21 people
killed in Indian rocket attack.
An army spokesman said there was exchange of fire in Jammu area in
which two Pakistani civilians were wounded. The Indians are violating
the status of working boundaries in Jammu area bordering Pakistan. It
is serious and we had to take certain preventive measures, he told
reporters.
It was one of the gravest violations of the cease-fire on the Line of
Control since last three or four years, an army official said.
Exchange of gunfire is a routine in this area but this attack is very
grave violation of the cease-fire.
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960131
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Delhi warned in strongest terms: Assef
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Bureau Report
ISLAMABAD, Jan 30: Foreign Minister Sardar Assef Ahmed Ali issued a
stern warning to India to desist from flexing its nuclear muscle and
indulging in shrill rhetoric against Pakistan because such
adventurous and dangerous policies could backfire.
We have behaved with utmost restraint and responsibility,
demonstrating to the world that we are a responsible nation, but our
restraint must not be read as a weakness. We will take all the
necessary steps to protect our people and India will pay a heavy price
for such actions, he warned.
Angrily responding to the Indian denial of the rocket attack, the
foreign minister said it was an absured lie which even the UN Military
Observer Group in India and Pakistan (UNMOGIP) had exposed. He asked
India for an explanation for the unprovoked attack.
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960129
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Leghari rules out war with India
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Bureau Report
ISLAMABAD, Jan 28: President Farooq Ahmed Leghari said that Pakistan
would respond to Indian rocket attack on a border town in Azad
Kashmir, but ruled out any possibility of a war between the two
countries. The attack killed 21 people and seriously wounded 25.
He did not elaborate how Pakistan would respond but said Islamabad
would not retaliate against civilians on the other side of the United
Nations-monitored cease-fire line which divides two parts of the
disputed Kashmir state.
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960201
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Bid to counter Prithvi threat
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ISLAMABAD, Jan 31: Pakistan might be forced to build its own missiles
if India continues its programme, President Farooq Ahmed Khan Leghari
said.
Pakistan will do whatever it can to respond for our own security
because the induction of the Prithvi missile will create a very
serious and a new threat perception for Pakistan.
Leghari said Pakistan had yet to choose how it would counter any
Indian move to start full-scale production of the Prithvi, which he
said would be tantamount to deployment.
We can also put in our effort to produce an indigenous missile, but
we wish to avoid such a race, Leghari said.
We dont want the introduction of new weapon systems of mass
destruction. Prithvi is nuclear-capable and that is where its danger
lies. The response time in Pakistan then becomes just two or three
minutes, he said. That is why we have been asking for a zero-missile
regime in South Asia.
Asked if Pakistan would demonstrate its own nuclear potential if India
carried out a test, he said: Pakistan will have to seriously think of
the options available to it.
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960201
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MQM activist Bhoora killed among 8 shot dead
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Staff Reporter
KARACHI, Jan 26: An under-custody MQM activist, Fahimur Rehman alias
Bhoora, was killed when, according to the police, he jumped off the
second-storey of an under-construction building.
Inquiries made by Dawn revealed that Fahim was believed to be another
victim of extra-judicial killing as neighbours gave a different
version of the incident.
Four more MQM workers were among the 23 MQM activists who have been
killed in alleged gunbattles with police or in custody this month
among them being MQM activist Ansar Ahmed and his brother Akhtar
Hussain. His relative Abid Hussain also fell victim to indiscriminate
shooting when he tried to rescue the wounded people.
Family claimed that soon after the attack they asked the occupants of
a police APC for help but they refused.
In another incident Nazim Mian, and Sadiq Ali, according to the
police, were among the 15 terrorists who were holding a meeting in
the C-1 Area graveyard when the police raided the site on a tip passed
by the chief ministers crime monitoring cell.
The police claimed that when they had arrived at the site, the group
opened fire on them and in the 20-minute gunbattle that ensued, the
two activists died while the rest fled. Constable Mohammad Ishaq was
wounded, they said. But the residents of the area disputed the police
version. Hospital volunteers who saw the bodies also said they had
been hit in the back from a very close range.
In yet another incident a MQM worker was killed, the victims two
accomplices who escaped were identified by the police as Tariq Sipahi
and Nadeem Marbalwalla.
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960126
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Agencies killing MQM workers, says Altaf
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Staff Correspondent
LONDON, Jan 25: While mourning the death of another party worker, the
MQM leader has alleged that Akbar was killed in a fake encounter.
In such circumstances, they have no other choice but to go
underground, said Altaf Hussain. He was arrested and allegedly killed
by the rangers and the police. The authorities, he added, had refused
to hand over the body until Akbars wife signed an admission that her
husband was a terrorist.
Mr Hussain said that at least 12 MQM workers had died in the last few
days as a result of fake encounters.
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960131
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Ishtiaq asks Leghari to help save nine workers lives
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Staff Reporter
KARACHI, Jan 30: Senator Ishtiaq Azhar urged the President to save the
lives of seven arrested MQM workers who he feared will either be
killed in custody or in fake encounters.
The Senator said four party workers Rehan, Rizwan, Amir and Mohsin,
who were arrested on Jan 25, were being severely tortured by rangers.
He alleged that either these workers would be killed in custody or
declared dead in a cooked up encounter.
Senator Azhar alleged that two other workers Adnan and Rizwan,
brother-in-law of Rehan Ahmed Khan, an MQM activist killed recently in
custody, were being tortured to extract confessional statements from
them.
In a statement, he urged human rights organisations and journalists to
take notice of the alleged torture.
He said Rizwan and Adnan were arrested by the police of Jan 20.
Describing the encounter as fake in which party worker Khalid Jamil
was killed, followed by the arrest of Aamir Allahawalla and Shahzad
Ali. Senator Azhar said Syed Shahzad Ali, was arrested by the law
enforcement agencies on Jan 13 and on Jan 18 he was handed over to
Orangi police station.
On Jan 24, Senators Aftab Ahmed Shaikh and Nasrin Jalil condemned his
arrest which is on the record but police cooked up a story that he was
arrested on Jan 29 on tip given Amir Allahwalla.
Even Aamir Allahwalla, he said, was arrested on the night of Jan 29
during raid in Surjani Town.
He renewed appeal to the President and the Chief Justice of the Sindh
High Court to take suo moto notice of the alleged torture and extra-
judicial killings of MQM activists and harassment of supporters.
BUSINESS & ECONOMY
960127
-------------------------------------------------------------------
Placing Sui above politics
-------------------------------------------------------------------
Kunwar Idris
THE MORE the politicians speak, the less the people know. This maxim
fits well the statements made by the former and present petroleum
ministers on the disposition of Sui gas field. The obfuscation at both
ends is patently deliberate to browbeat or to embarrass each other.
The right of the people to know the facts and contribute to the debate
is thus being lost in a political wrangle.
A brief background information should help in understanding the
assertions of the ministers and what they are trying to state or
conceal. Sui gas field was discovered in 1952 by Burmah Oil of
Britain. Two years later Pakistan Petroleum Limited (PPL) was
incorporated to own and exploit the field. PPL has since then owned
and operated the field. In this company, 63.9 per cent shares are held
by Burmah, 29.5 percent by the Government of Pakistan and 6 percent by
International Finance Corporation. The remaining fraction of one
percent are held by the public. The majority ownership of the gas
field thus vests and has always vested in Burma, a foreign company.
For many years now Burmah has declared its intention to quit Sui; for,
after its merger with Castrol its strategy worldwide was to
concentrate on the marketing of oil and lubricants. Burma's effort to
sell its share in PPL failed to evoke interest of any company of
standing not even of its old partner in Pakistan, Shell. The reason
for this lack of interest, broadly speaking, was the fast depleting
reserves, meddlesome behaviour of the Balochistan administration and
local tribes and the pricing policy of the Government of Pakistan.
Over three years ago after a long and expensive process, Burmah chose
to sell its share to a consortium of Premier of Britain and Dalle
Albarake of Saudi Arabia. In the circumstances theirs was the best bid
for Burmah and an acceptable combination for the government because
Premier possessed the experience of working in Pakistan and Dalle-
Albaraka the money needed for investment.
Mysterious decision
Having agreed in principle in the first instance, the government
finally, and mysteriously, chose (in 1992) not to give its consent to
the Burmah - Premier - Alberaka transaction. To refuse consent, a rule
of 1949 vintage was invoked which was an anachronism in en age where
the government is bending ever backward to attract foreign investment.
The controlling shares in PPL are owned by Burmah. It could sell them
to anyone it liked. In the spirit of even the archaic rule of 1949 the
government could have withheld consent only if it suspected the new
owner was a saboteur or wholly incompetent to manage the field. That
certainly could not be said about the combination of skill and wealth
the new buyer represented.
Whatever the motive or reason for refusal to endorse the transaction,
and they remain buried in the chests of the political leaders of the
time (1992), three years critical to the technical appraisal and
further development of Sui reservoir have been lost. Burma, quite
justifiably, would not make the huge investment required for it had
made up its mind to quit. Sui reserves are fast depleting. By the turn
of the century the production from the field is expected to fall
steeply. To reach the untapped reservoirs in deeper horizons new
technology and large investments are needed. Whatever authority, legal
or moral, the government possesses in influencing Burmah's sale, the
sole criterion in exercising it should be whether the new owner can
bring the kind of technology and money needed to sustain the
production of gas from Sui at the present level of about 60( million
cubic feet a day (nearly one third of national production) for a
number of years into the 21st century. When the country is desperately
looking for foreign investment in all sectors of its economy,
xenophobia coming into play when a foreign investor wants to come into
Sui is wholly un-understandable, Foreign capital and latest technology
combined with the management expertise of PPL built over the past 40
years could renew the productive life of the field for a number of
years to come.
A great setback
Talking of foreign investment, nowhere does the country need it more
than in oil and gas development. We can run our own banks and
factories but can neither muster the risk capital nor the advanced
technology needed for exploration and recovery from deeper horizons.
It was a setback when Occidental of America, a world giant, after
years of deliberation chose not to invest in the depleting oil wells
of Potohar and instead passed them on to a local company for residual
recovery. The same fate should not befall Sui which is nation's pride
and a synonym for natural gas even when it comes out of 50 or more
other wells in various parts of the country. A foreign majority holder
in the PPI could cause no damage to Sui. He has to produce to the
maximum to sell in bulk to the distribution companies. Under our much
publicised policy foreigners can pull out their investment whenever
they like. An investor in gas and oil field has to wait for long years
to recover it. It is not cash or machinery which he can pack up and
sell whenever he likes The fear of foreign exploitation thus should be
non-existent. In any case the company will be run by Pakistani
professionals, and even in a free market regime the government will
have greater say in the pricing and distribution of oil and gas than
in other commodities and services.
Also figuring in the controversy of the ministers is the Qadirpur gas
field. The concern shown on the reported sale of Burmah's 8.5 per cent
and PPL's 7 percent share in this field to the Broken Hill Properties
of Australia is not at all understandable. With OGDC owning 75 percent
of the field and operating it, no apprehension should arise on a world
ranking conglomerate, which BHP is, replacing the present uninterested
relatively small companies. Qadirpur is the biggest discovery of gas
after Sui. In this transaction neither the government nor opposition
should interfere. If at all, BHP should be encouraged to enhance its
stake in Pakistanis petroleum sector.
A negative signal went to the world petroleum investors when the
previous government for no declared reason refused to approve Burma's
sale to Premier - Albaraka consortium. It went contrary to the
national policy on investment. That sordid tale should not now be
repeated when new and bigger willing investors are coming forth to
replace those who are long seeking to quit.
They all know their own mind and have their strategies. They are also
fully capable of safeguarding their own interest. Sui and Qadirpur
constitute a vital link in the national life-line and should not be
allowed to become victims to the politics of protest.
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960127
-------------------------------------------------------------------
PPL sale: opposition not based on sound facts
-------------------------------------------------------------------
M. Ziauddin
There is always more than one side to an argument. And it is always
prudent to know what all these other points of view are, especially
while trying to find out the real truth about a billion dollar scandal
in the making. Let us first see who the main actors are in this high
drama in the country's gas sector. The first is Burmah Castrol which
want; to sell all of its 63.91 per cent shares in Pakistan Petroleum
Limited (PPL) to the second actor, the BHP which in turn wants to sell
these shares under a back-to-back arrangement to the third actor, the
Hashoo group. The second actor BHP also wants to purchase 15.5 percent
shares in Dadirnur gas field ( 8.5 per cent from Burmah Oil Netherland
Exploration(BONE), a company wholly owned by BC and 7 percent from
PPL).
A few years back, Burmah's board decided to disinvest all upstream
petroleum projects/operations, including its equity in PPL. Since then
Burmah Castrol has been trying to get rid of its shares in the PPL.
Sometime back, when Shell, a reputable international oil company
showed an interest in these shares, the government refused to issue
the NOC (required under the Exploratson and Production Rules 1986) on
the grounds that country's interests would not be served if the
majority shares in such a strategic national resource were to pass
from one foreign hand to another. The NOC was denied again, when a
consortium of the local employees of the company offered to take over
the shares. This time the reason given for the refusal was: the
consortium lacked the needed experience.
So, the BC awaited the arrival on the scene of the right party with
the right credentials to unburden its PPL shares. But just when it
thought the waiting time had ended President Farooq Leghari stepped in
and here is what he has said about the proposed deal involving the
local Hashoo group: Is the Hashoo group really appropriate or
qualified for the transaction? The seller is Burmah-Castrol, does not
appear to have discussed the transaction with Hashoo group.
Does Hashoo group possess the required experience, track record and
management depth to justify this level of responsibility? After all
the deal, if it goes through, will place half of the country's total
gas resources in the hands of one inexperienced private group which
has only recently entered the oil gas business. It could have
important monopolis tics implications leading to potentially and
significantly higher prices for the consumers and resulting in low
receipts of Gas Development Surcharge revenues for the government."
Buyer's status:
Let us first examine the first part of the Presudential observation
which questions the qualifications of Hashoo group. On the face of it
the group does qualify for the transaction as one of its subsidiaries,
Zaver Petroleum, has already acquired Occidental of Pakistan from Oxy
of the USA together with its working interest and operation in three
oil-fields namely Dhurnal Bhangali, and Ratana. Besides this, Zaver
Petroleum owns percentage working interest in three joint venture
blocks in OGDC. But there-is, in view of the Presidential doubts, a
need to look further into the matter with a technical and financial
toothcomb. Especially, why BC did not deem it fit to sell the shares
direct to Hashoo group. Also, there is need for some back probing in
the Oxy deal as a number of questions were raised in the Press at that
time, especially on the issue of actual price Zaver Petroleum paid for
the purchase of OPI and Oxy interests in Pakistan. Mr.Sadruddin
Hashwani, the man behind the Hashoo group, has over the years acquired
for himself an image of being an adventurer. But such images come
naturally to men who prove that you can "get rich quick" without
having to rob a bank. Most of the companies on the Fortune's list of
500 were started by such men. But still, that is no qualification, and
the credentials of the group need to be looked into more thoroughly
before they are allowed to buy the BC shares in PPL.
Question of surcharge
The second part of the Presidential observation is too far fetched.
The President does not clarify how the monopolistic aspect that he
fears would appear following the transaction, is being tackled now
with a foreign company already holding the majority shares in the PPL.
Also, he does not say how the government has so far succeeded in
keeping the BC from not interfering with the prices and why the
present arrangement has so far not threatened the income from
development surcharge head. Probably those who briefed him on the
matter have purposely tried to confuse him. The BC not only owns 63.9
percent shares in the PPL but also owns 8.5 percent share through BONE
in Qadirpur gas fields, but still, under the rules, it can neither
interfere with the gas prices, nor can it affect in any way incomes
from the development surcharge. However, if the BHP which have been
offered the 8.5 percent shares of BONE in Qadirpur, also get 7 percent
of PPL shares in the fields, under the rules of the joint venture, it
gets an effective voice in the decision making process as far as
Qadirpur gas fields are concerned which alone are contributing Rs. 400
million by way of Development surcharge. It is this Rs.400 million
that are being threatened immediately (and that too only if the BHP
gets the 7 percent PPL share) and not the Rs. 6.6 billion which are
coming in as development surcharge from Sui and Khandkot.
So, in the real sense, the President is only opposing the sale of 7
per cent of PPL shares in Qadirpur gas fields to the BHP. Also, as he
has rightly pointed out, the ECC is not competent to sell these shares
because the Cabinet decision already disallows the sale of any
discovered field.
The President, however, has not asked why Hashoo group could not get
the BC to enter into direct transaction with it and why it needed a
foreign oil company to play the middle man. He however, has rightly
wondered whether the offer to sell 7 percent of PPL shares in Qadirpur
to BHP was the Australian company's compensation for acting as a
'front' for facilitating the sale of PPL to Hashoo group.
Besides, the President has rightly observed that any action to further
enhance the attractiveness for BHP through an unrelated Qadirpur/PPL
transaction, as proposed, without competition and without equal
opportunity to other oil companies operating in Pakistan would
undermine the transparency as well as the fair application of the
Petroleum Policy. However, when the President says that any assurance
from BHP/Hashoo group on prices would go against the spirit of the
Memorandum of Understanding signed between IFC and GOP on natural gas
pricing issue in return for an IFC loan of $80 million. For PPL's
compression project, he is actually conceding that gas prices are
bound to go up whether the PPL/Qadirpur transaction goes through or
not. His argument that it would be in Pakistan's interest to retain
the maximum options in PPL so that the strategy and policy with regard
to this field remain free from interference from any private group
acting in its own narrow economic interests would have been valid and
acceptable only if that was the position at present. But this is not
so. At present the GOP owns only 29.41 percent of the PPL. And the
rest of the shares are with a foreign private company already, with
only a small fraction in possession of IFC.
However, in order to overcome this weakness, the President has made an
unique suggestion. He wants the government to buy off BC. And then
disinvest the shares on the market within two years. In other words he
wants nationalisation of BC's shares for the time being. Does he know
the kind of signal that this one single step would send to the world
outside and to the foreign investors planning to come to Pakistan? And
then from where does he think he could raise so much money to buy the
BC options in PPL? From the IFC? Despite what is being desired by the
President, the World Bank affiliate would not touch the proposal with
a barge pole. The majority shares of PPL, to the tune of 63.91 percent
are already in the hands of a foreign company. It also owns 8.5
percent share in Qadirpur gas. There is no way the government of
Pakistan can buy these options. So, the whole game appears to be
intended to keep the BHP from acquiring an effective voice in the
Qadirpur gas fields. But, the question is, why?
The BHP is a reputable Australian company with over 100 years of
experience in oil exploration, development and marketing. It has come
to Pakistan very recently and is engaged in the prestigious two
billion dollar Iran to Pakistan gas pipeline project. It has already
spent its money and time on the preparation of the feasibility report
of the project and now also on defining the project.
Why should there be any reservations if such a company is keen to join
the mainstream gas production, marketing and transmission systems in
this country. Such an involvement would be mutually beneficial as the
consequent enhancement in the understanding of the Pakistani market
would encourage BHP to expand its investment interests in the
country's mineral development efforts and on the other hand Pakistan
would gain immensely in terms of capital and technological transfer.
No private company is bigger than the government. Therefore, whether
it is BHP or Hashoo group, if they do not operate in this country
within the parameters set by the government, they could be deprived of
these assets with one single Ordinance. So, there is no need to panic
at every privatisation deal. But then it is also prudent to look
before you leap. And it is always better to debate an issue in the
open rather than push it through behind the nation's back.
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960201
-------------------------------------------------------------------
Rupee loses eight paisa against dollar
-------------------------------------------------------------------
Commerce Reporter
KARACHI, Jan 31: The parity of the rupee was readjusted lower by eight
paisa against the dollar, refixing its rate against the green back at
Rs 34.33 and 34.50 for buying and selling, respectively.
The chief worry of the government is to achieve the export target of
$9.2 billion, which appears pretty difficult, as the figures of the
first 6 months of the current year showed a decline of five percent,
said a leading exporter.
The export figures for the first half of the current fiscal year
showed a decline of over five per cent rather than the projected
increase sending shock waves in the official quarter, they added.
Official sources said the devaluation is inevitable to keep the value
of rupee competitive otherwise the export target of $9.2 billion will
be hard to achieve.
After having fallen to two-year low of Rs 18 billion in early
December, the forex reserves rose to Rs 52 billion in January, but are
again on the decline, they added.
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960130
-------------------------------------------------------------------
Bank borrowing for budgetary support goes up to Rs 41.2bn
-------------------------------------------------------------------
Bureau Report
ISLAMABAD, Jan 29: Bank borrowing for budgetary support by January 4,
1996 went up to Rs 41.2 billion against the full year target of Rs
28.1 billion and Rs 18.24 billion recorded in the corresponding period
last year.
The government had earlier claimed that budgetary borrowing had come
down to less than Rs 40 billion by December 31, 1995, from Rs 55
billion recorded in the first five months of the current financial
year.
According to the fortnightly report of the State Bank on the liquidity
and domestic borrowing situation for the period ending January 4, net
borrowing by the government sector during this period declined further
by Rs 5.8 billion to Rs 41.3 billion compared with the decline of Rs
2.9 billion to Rs 47 billion in the preceding fortnight.
Net financing for commodity operations had declined by only Rs 0.5
billion as compared with much larger retirement of credit of Rs 5.7
billion on this account during the corresponding period last year.
Private sector credit, which had risen by Rs 6 billion to Rs 39.9
billion in the preceding fortnight, rose by a larger amount of Rs 9.1
billion and stood at Rs 49 billion as of January 4, 1996.
In the corresponding fortnight last year, private sector credit had
expanded by Rs 9.9 billion to Rs 36.6 billion. The expansion, though
in line with the seasonal trend, indicates the need to further tighten
the monetary stance in order to contain the domestic credit within
stipulated limits, the SBP report said.
Net foreign assets of the banking system, which had extended a
contractionary impact of Rs 51.4 billion in the period upto December
21, 1995, improved by Rs 8.4 billion to (minus) Rs 42. 9 billion
during the fortnight ended January 4, 1996.
Domestic credit expanded by 12.44 per cent or Rs 94.8 billion which
was higher by 0.03 percentage point or Rs 0.25 billion than last
reported up to December 21, 1995, and compared favourably with the
expansion of 1.1 per cent or Rs 9.1 billion reported in the preceding
fortnight.
Expansion recorded so far, 12.44 per cent, was, however, much higher
than the expansion of 3.70 per cent recorded in the corresponding
period last year and also compares unfavourably with the target of
14.27 per cent for the full year.
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960201
-------------------------------------------------------------------
IMF assured of cut in defence expenditure
-------------------------------------------------------------------
Aslam Sheikh
ISLAMABAD, Jan 31: Pakistan is to make determined efforts to contain
defence expenditure and reduce it as percentage of Gross Domestic
Product (GDP) beginning from the next fiscal year.
This commitment has been made to the International Monetary Fund as
part of the on-going economic reforms linked with the $600 million
stand-by credit negotiated recently.
Pakistans commitment, however, is couched in a cautious language
making it clear that any reduction in defence expenditure will have to
be consistent with the security needs of the country. The current
level budgeted for the fiscal year 1995-96 is 5.3 per cent of the GDP.
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960128
-------------------------------------------------------------------
CBR clarifies : Advance tax also applicable to TDRs, SNDRs
-------------------------------------------------------------------
Aslam Sheikh
ISLAMABAD, Jan 27: The Central Board of Revenue has clarified to the
banks that advance tax of paisa 20 per one hundred rupee is also
applicable to what are called TDRS (term deposit receipts) and SNDRS
(short notice deposit receipts) in banking jargon in addition to other
financial instruments used for inland transfer of money.
Some bankers allege this levy is scaring away depositors who see in it
a new move to subject bank deposits to harsh taxation. The new tax in
addition to the withholding one at ten per cent on profits of such
deposits will also discourage the drive to attract new bank deposits,
insist some bankers.
A bank sources said the CBR could not come with a clear definition of
the terminology SPECIAL DEPOSITS. In discussions that followed and
through one of its/circulars/excluded term deposit receipts and short
deposit receipts from the purview of new advance tax later, a source
revealed, the earlier exclusion was reversed by the CBR and banks were
directed that TDRS and SNDRS were also subject to the new advance tax.
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960131
-------------------------------------------------------------------
Exporters, bankers clash on exchange rate fluctuation
-------------------------------------------------------------------
Staff Reporter
KARACHI, Jan 30: Exporters and top bankers clashed in the Federal
Export Promotion Board meeting, with Prime Minister Benazir Bhutto in
chair on issue of exchange rate fluctuation of Pakistani rupee.
Exporters pleaded for due consideration to be given to the changes in
cross rates of European and US currencies as the recent appreciation
of the US dollar has not been reflected in the exchange rate of rupee
by the SBP after devaluation.
The exporters, therefore, suggested that SBP to operate float
management mechanism to respond quickly to the fluctuation in US
dollar and European currency rates in determination of exchange rate
of Pakistani rupee.
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960126
-------------------------------------------------------------------
Investors make fresh extensive purchases
-------------------------------------------------------------------
Commerce Reporter
KARACHI, Jan 25: Stocks finished the weekend session amid an extended
bullishness. The Karachi Stock Exchange index of 100-share ended close
to its next chart point of 1,600 at 1,591.50 as compared to
Wednesdays 1,562.53.
The big gainers were led by PSO, which seemed to be reviving old
memories and is heading towards its previous peak level of well over
Rs 400 for a 10-rupee share. It rose by Rs 27 to 300 amid active
trading.
Other energy shares were also actively traded at the current lower and
rose under the lead of KESC, which posted a fresh gain of Rs 3.
Adamjee Insurance added a fresh sharp gain of Rs 14 to its overnight
rise of Rs 10.50, rising well over Rs 30. Other good gainers were led
by Siemens Pakistan, D.G.Khan cement, National Fibre, NDLC, and PIC,
which posted gains ranging from Rs 4 to 32.ICP SEMF, Citicorp, Capital
Securities, Engro Chemicals, Telecard, Metropolitan and Prime Bank
were among the other leading gainers.
Lever Brothers fell sharply by Rs 15 and was leading among the
prominent losers followed by Pakistan Elektron, Orient Board, Dewan
Salman, BOC Pakistan, Wellcome Pakistan, Sitara Chemicals, Pakistan
Refinery, and ALICO, falling by one rupee to Rs 1.50.
Hub-Power topped the list of most actives, up Rs 1.30 on 12.445
million shares, followed by PTC vouchers, lower 40 paisa on 6.760
million shares, Lucky Cement, up 20 paisa on 1.410 million shares,
Crescent Textiles, up 50 paisa on 767,800 shares, Fauji Fertiliser,
lower 35 paisa on 542,000 shares, Dhan Fibre, steady 15 paisa on
760,500 shares, Faysal Bank, easy five paisa on 362,500 shares, and
ICI Pakistan, easy 15 paisa on 356,000 shares. There were several
other notable deals also.
There were 354 actives, out of which 155 shares rose, while 102 fell,
with 97 holding on to the last levels.
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960127
-------------------------------------------------------------------
Stocks rise across broad front as investors cover positions
-------------------------------------------------------------------
Muhammad Aslam
STOCKS rose across a broad front during the preceding week. Big
increase in the KSE 100-share index, which surged by about 100 points
to 1,591.50 as compared to last week's 1,492.47 showed that the run-up
is real and could be sustained during the coming sessions too.
The market firm stance and uppish leaning is also evident in a big
fresh increase of 99.03 points in the KSE 100 share index signalling
that its next chart point could be 1,600 points before the month is
out.
"The current equity rates are about 30 percent lower than other
emerging markets and provide an attractive bait for any foreign
investor", floor brokers said.
Dealers said a big rise of well over 60 points in the index just in
few sessions, which added Rs 9 billion to the market capitalisation at
Rs 342 billion is not a small an achievement and speaks of qualitative
change in the share trading.
Bulk of the support, however, remained centred around PTC vouchers,
which were massively traded and the interesting feature was that it
crossed the barrier of Rs 32 after several months of sluggishness.
Hub-Power followed it, rising sharply on active follow-up support and
was traded massively.
Lucky Cement, Fauji Fertiliser and ICI Pakistan have recently joined
the selected band of current favourites and were again heavily traded
mostly at the higher levels.
Adamjee Insurance, which has been dormant for the last several weeks
also burst into activity and rose sharply on news of strong foreign
buying.
Trading volume was maintained the last week's level of 104 million
shares bulk of which went to the credit of PTC vouchers and HubPower.
Both were traded massively in each session on reported strong foreign
buying. Some other MNCs also followed them under the lead of IM
Pakistan, and Fauji Fertiliser and the Faysal Bank.
The notable feature of the week was, PTC vouchers alone accounted for
30 million shares.
During the next week also, both theses are shares expected to lead the
market advance and could take some other shares in the sectors along-
with them, notably in the energy sector where the newly listed Sitara
Energy has already assumed the role of a most active scrip.
Other actively traded shares included Askari Bank, Dhan Fibre Ibrahim
Fibre, Sub Southern, Sui Northern, Tri-Pack Films, D.G. Khan Cement,
LTV Modaraba and Honda Atlas.
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960201
-------------------------------------------------------------------
KSE index suffers fresh setback
-------------------------------------------------------------------
Commerce Reporter
KARACHI, Jan 31: Stocks gave another subdued performance. Selective
support, however, figured prominently on the blue chip counters, which
did not allow the market to fall below the current sustainable levels.
The Karachi Stock Exchange index of share prices suffered a fresh
setback of 2.41 points at 1,594.48 as compared to 1,596.89 a day
earlier.
Although minus signs again dominated the list, Attock Refinery, for
instance, rose by another Rs 10 on news of higher interim followed by
PSO, which recovered Rs 5 after last two days persistent decline.
Siemens Pakistan followed it, which also posted a gain of Rs 10 on an
identical reasons. Other MNCs, which followed it included Brooke Bond,
Rafhan Maize, Pakistan Oilfields, National Refinery, and some other
rising by Rs 3 to 5.
Among the locals, which showed good gains, 4th ICP, Bank of Punjab,
Crescent Bank, Al-Abid Silk, National Fibre and Frontier Sugar were
leading, rising by one rupee to Rs 5.
Dadabhoy Insurance, which was quoted spot after a big decline of Rs 43
was the leading loser, followed by Fazal Textiles(r), Sana Industries,
and Quality Steel, which fell by Rs 2 to 3.50.
ICI Pakistan, Reckitt and Colman, Wellcome Pakistan, and PIC were
other prominent losers falling by one rupee to Rs 10.
The most active list was topped by Hub-Power, off 90 paisa on 9.277
million shares, PTC vouchers, lower 45 paisa on 7m shares, Lucky
Cement, off 75 paisa on 1.616m shares, Tri-Pack Films, off Rs 1.15 on
0.795m shares, Faysal Bank, easy five paisa on 0.791m shares, ICI
Pakistan, lower one rupee on 0.331m shares, LTV Modaraba, lower 10
paisa on 0.266m shares, and Mohib Textiles, up 35 paisa on 0.265m
shares.
Trading volume fell to 26.589 million shares from the previous 30.935
million shares owing to the absence of leading sellers.
There were 347 actives, out of which 157 shares suffered fall while
108 rose, with 82 holding on to the last levels.
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960126
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State terrorism
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Ardeshir Cowasjee
STATE terrorism: Government by intimidation and carried out by the
party in power; a policy intended to strike with terror the people
against whom it is adopted; the systematic use of terror or
unpredictable violence against defenceless people. It has been
practised by weak or authoritarian governments throughout world
history.
Our ignorant or revengeful governments have invariably employed state
terrorism, but never before in the history of this country has it been
practised so systematically as is being done at present against a
section of the populace of Karachi. People are being murdered, whilst
in custody, by the government forces of law and order. Whatever be the
provocation, this cannot be condoned. And, after the murders have been
committed we are told that because of an 'incident or an 'encounter'
the police were forced to kill. No one believes this.
The latest known massacre in custody took place on January 20. At 0500
hours, a posse of armed police and Rangers in 35 mobiles under the
command of Toufiq Zahid Khan, SHO of the Khawaja Ajmer Nagri police
station and ASI Ayaz, raided and laid siege to the house of the in
laws of Rehan Ahmed Khan in Dastagir Colony. They had no warrants, nor
were they accompanied by women police officers. Women and children
were subjected to search, intimidation and, in some cases, beatings.
During the four hour siege of the area, seven men were arrested, and
five; including Rehan, were killed. It is feared that the remaining
two, who are still held in custody, will meet the same fate.
The senior-most Senator of the MQM, Ishtiaq Azhar, has appealed to the
newly harnessed centre 'trotter' of the Troika, COAS General Jehangir
Karamat, a good soldier capable of ordering those under him not to
kill their fellow citizens. The Rangers, after all, are commanded by
regular army officers. 'Tikkakhanish' or 'Babaric' action attract
nothing but disgust.
State terrorism can take many forms. Murder is only one of them.
Another form is that now being practised by Kamaluddin Azfar, Governor
of Sindh. He creates alarm by now and then making efforts to
destabilise the people supported organisation, the CPLC - in the
working of which the people have great faith and trust - headed by
volunteers Nasim Haji and Jameel Yusuf. His campaign to dislodge Nazim
flopped. Being more loyal than the queen, he tried to get rid of Nazim
merely because he had written a letter to the Press saying that he
felt that under the present misrule the downfall of the country would
come sooner than predicted by the then World Bank SVP Shahid Hussain.
Now Jameel, who supported Nazim, is the honourable Governor's target.
False information was disseminated. It was said that the 'agencies'
had discovered that Jameel was involved in the killing of the two
American Consular staff members in Karachi last March. The leak,
picked up from the Governor's mansion, was printed in Jang and Nawa-i-
Wagt on January 15. This created a stir amongst the people who have
more faith in the CPLC than they have in the government agencies. And,
of course, the lower ranks of the police force, highly resentful of
the CPLC, fanned the fire.
On January 18, Jameel wrote to the Governor requesting that an
investigation be held into the false and defamatory statement. On
January 24, Jang carried the following front-page news item:
"Governor Sindh has ordered the immediate dismissal of Jameel Yusuf,
Deputy Chief of the CPLC, following reports of the involvement of his
nephew in terrorist activities. In a letter addressed to the IGP
Sindh, the Governor lauded the role of the CPLC in combating crime and
stated that a person such as Jameel Yusuf is not fit to serve in a
sensitive organisation like the CPLC, formed to help innocent people
who are victims of crime and to eliminate criminals from our society.
Not only have the intelligence agencies provided information on Jameel
Yusuf, but his brother Nisar Yusuf's son has been arrested for
harbouring terrorists and weapons. Governor of Sindh has very clearly
emphasised that he is not removing the CPLC Deputy Chief because of
any personal grudge. A copy of the letter addressed to the IGP has
been sent to the Prime Minister's Secretariat and, according to
sources there, the Prime Minister has expressed her satisfaction on
the Governor's decision".
Since everything that any member of the government denies is taken by
the public as being the gospel truth, we immediately understand that
the honourable Governor does indeed harbour a "personal grudge"
against the chiefs of the CPLC.
Jameel's nephew was picked up by the police, interrogated, tortured
and then released on bail. Jameel has received no intimation from
anyone regarding his "dismissal". The IGP has received no letter from
the Governor as reported.. The Sindh Home Secretary knows nothing
about Jameel's dismissal. The good editor of Jang, when I spoke to
him, said he has evidence to substantiate what his paper has printed.
Why is Kamaluddin being so inept? He cannot even 'fix', after having
been trained by the original 'fixer'.
Now to state terrorism in Rawalpindi, where the 'high-ups' are having
a field day with Minoo Bhandara and his 135-year-old Muree Brewery,
the products of which have enriched our governments enormously and
given pleasure to many of our citizens. In October 1994, Bhandara,
aggrieved by a government decisions, instructed his Karachi
representative to file a petition in the Sindh High Court and he then
went abroad. Before the representative could act, he was summoned to
his local police station by DSP Siddiqui. He was made to stand for
three hours. He was threatened. Unless he agreed to desist from filing
the petition, he would be charged with 'harbouring dacoits', the book
would be thrown at him, and he would be arrested. The terrorised man
gave in. Bhandara returned to Pakistan, went to court, and obtained
Supreme Court orders in his favour. Because of this, he is now being
terrorised and harassed. The Income Tax department, the FIA, the CIA,
and the rest of the gang, were all brought into play and his life has
been made miserable.
In December 1995, his bottle-making plant at Hattar was closed down by
the authorities on a putrid excuse. After much running around he
managed to get it back into operation. Thereafter he received threats
emanating from various 'high-up' quarters and was told that his
brewery would be closed down. Those conveying the threats were
apologetic, telling him they were helpless.
On January 17, without notice, armed police, under the orders of the
Assistant Commissioner, raided his brewery, arbitrarily shut it down
and sealed it, locking out some 300 men. Bhandara appealed to the
Lahore High Court at Rawalpindi, where on January 22, Justice
Allahnawaz told the AC that 'due process' had not been followed, that
he should review his hasty action. The AC asked for time to consult
his 'superiors' and the case has been adjourned to January 29.
Optimistic Bhandara has now made a public appeal to the President.
This was printed in the Islamabad edition of The Nation, under the
heading "Muree Brewery illegally unlawfully closed." The narrative
states: "Ostensible reason: The sealing was necessitated in the
interest of industrial peace. Real reason: Supreme Court decisions in
the Brewery's favour which have upset the business interests of the
most powerful and influential person of Pakistan."
Moving to Islamabad, here also we find targets of terrorismthe judges
of our Supreme Court. The Judges Case, which has been dragging on
since November as it has been adjourned again and again on the request
of the government, was fixed for hearing on January 21. That morning a
'voice' telephoned the Registrar and informed him that a bomb had been
planted in the Supreme Court and recommended that the building be
evacuated.
Consulting his brother judges, the Chief Justice disregarded the
terroriser's call and commenced proceedings. Attorney-General Qazi
Jameel stated he was not ready to plead, as did the lawyers engaged by
the government, former AG Yahya Bakhtiar and the party's Cambridge
Chaudhry, Aitzaz Ahasan, the judges were firm, sufficient leeway had
been gives, no further adjournments would be granted.
The AG droned on for three days, until the rising of the court on
January 23. Whilst closing, he very correctly thanked the court for
hearing him with patience and tolerance, whereupon Justice Ajmal Mian
was constrained to observe that he had left unanswered too many of the
questions asked by the court.
We are desperately in need of a strong independent judiciary. Each
man, howsoever and wheresoever he finds himself, should do his best to
see that the goal is attained. My friend the Jadoogar, amicus curiae
Sharifuddin, will be the last to rise and address the court in the
Judges Case. He has been "terrorised" as has been the poor petitioner
. Habibul Wahabul Khairi who too has suddenly received income-tax
demands relating to his past long closed assessments. Nevertheless, it
is hoped that the clever and indeed very competent Sharifuddin will
redeem himself, guide the court correctly, and set us right.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960129
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Political power and the judiciary
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Ayaz Amir
ARDESHIR COWASJEE has been writing about the judiciary and its plight
for some weeks now but, I strongly suspect, without eliciting from the
public at large the kind of interest or concern that would have been
kindled in any other democratic society.
At the best of times the mercurial temperament of our people is such
that they can get hysterical over trifles whereas matters of greater
importance leave them cold and indifferent. Our past is replete with
instances of serious agitations arising over non- issues while no one
lost any sleep over the secession of East Pakistan. Nowadays of course
the national capacity for indignation has been dulled by the
realisation that in the Islamic Republic no exercise is more useless
than the expression of outrage. When tales of corruption and plunder
that would leave the heavens amazed have not the slightest effect on
anyone, why should the indirect harassment of the Chief Justice of
Pakistan make the mountains weep?
The bare details of this harassment, first reported by Ardeshir
Cowasjee in his column and not convincingly rebutted by anyone in
authority, are clear enough. In November last year a contingent of the
Sindh police raided the house of the Chief Justice of Pakistans son-
in-law who is a superintending engineer in a government department.
Luckily for him he was not at home. A few days later a notification
was issued suspending him from service.
Such things do not happen in Pakistan just like that. In a country
where even modest bigwigs are usually above the law, distinguished
sons-in-law like, say, Mr Irfanullah Marwat, or distinguished fathers-
in-law such as Mr Hakim Ali Zardari enjoy an exalted status. Even if
they do anything blameworthy no harm can come to them. In the case of
the Chief Justices son-in-law he has not done anything which makes
his victimisation all the more strange. What adds to the sense of
drama in this affair is the writ filed in the Peshawar High Court by a
lawyer with known PPP leanings challenging the appointment of the
Chief Justice of the Supreme Court, who was elevated to his present
position over the heads of several colleagues senior to him.
Is the proximity of these two events a mere coincidence or are they
links in a chain whose purpose is to punish the father-in- law for any
sins that he may have committed? All that we know is that the Chief
Justice has admitted for hearing the so-called judges case in which,
to the governments visible chagrin, the merit and worth of recent
appointments to the higher judiciary have been called into question.
The Chief Justice certainly has not committed any impropriety in
admitting this writ for hearing. The trouble, however, is that the
culture of power has sunk to such low depths in this country that
those who are in power expect even chief justices to behave like SHOs.
Going into the merits of the judges case would be improper because it
is currently sub judice. But something can be said about the
harassment directed, if only by proxy, at the Chief Justice of
Pakistan because nothing like it has happened in this country before.
Not that this is the first time in Pakistan that a government has been
unhappy with a judge. All Pakistani rulers, regardless of whether the
form of government is a dictatorship or a democracy, have been at
heart tinpot Mughal princes, exercising power arbitrarily and chafing
at the bit when there has been the slightest check on their authority.
Difficult judges, therefore, run counter to the spirit of Pakistani
governance. The vital difference, however, is that in the past
governments have never resorted to vulgar or bazaar tactics when
dealing with awkward judges. They have taken care to observe some
minimal standards of decency.
Ayub Khan was not particularly enamoured of Justice Kayani whose bold
speeches in defence of civil liberties were an irritant for the
martial law regime. But no relative of Justice Kayanis was picked up
as a consequence on the orders of the Field Marshal or on those of the
feared Nawab of Kalabagh who was then guiltier of West Pakistan.
Zulfikar Ali Bhutto had no patience with an independent judiciary but
he did not use police methods in order to bring it under his thumb. He
mutilated the constitution which for all its reprehension was still a
case of using the law rather than anything else to subvert the law.
General Zia-ul-Haq, of course, was the master- user and abuser of the
judiciary. When it suited his purposes no one could lay himself out
more to flatter the lords of the higher judiciary. His purposes
achieved, he enacted the Provisional Constitutional Order (the
infamous PCO) which required the judges of the high courts and the
Supreme Court to take a fresh oath of loyalty to a dispensation which
had stripped them of their constitutional powers.
That this was a humiliation which he was visiting upon the judiciary
the same judiciary which had earlier subscribed to the wisdom of
necessity was obvious enough. But, if anything, it was a
metaphysical humiliation. The ISI did not go rounding up individual
judges.
In any case, what is sauce for a military government should not be
sauce for a government which never tires of proclaiming its adherence
to the finest tenets of democracy. Where this government should have
prided itself on strengthening the judiciary it has done what has lain
in its power to weaken it. Three of the four high courts are still
without permanent chief justices. Justice Nasir Aslam Zahid was
transferred from the chief justiceship of Sindh to the Federal Shariat
Court because his liberal ways sat uncomfortably with the governments
prejudices. The criteria adopted for the appointment of fresh high
court judges (the subject matter of the writ currently being heard in
the Supreme Court) were such as to generate a country- wide
controversy.
But to crown this distinguished record comes the crude harassment of
the Chief Judge of Pakistan. To harass my daughter is to harass me. To
harass the Chief Justices daughter is to harass the Chief Justice.
Greater than the distinction of presiding over a system of corruption
and mal-administration that has no parallel in the nations history is
the audacity which informs this undertaking.
A government capable of this is capable of anything. And in proving
itself so capable it has reduced not only itself. It has diminished
the dignity of the state as well because a country whose chief justice
can be so harassed is a country where the last props of decency are in
danger of falling away. Let us forswear the nonsense of wanting to
join the ranks of the Asian tigers. The rate at which we are
destroying the traditions and institutions necessary for a society
based on order and justice, we should rather be dreading the example
of those African countries which are headed towards anarchy.
None of this is to suggest that we should fool ourselves about our
superior judiciary. If ever its history is written it will not be
written in characters of gold. But this aspect of the matter aside,
the fact remains that if I as a citizen of Pakistan have any
fundamental rights these are guaranteed not by GHQ or the FIA but by
the constitution whose custodian the judiciary is. If my fundamental
rights are violated, the only door I can knock at is that of the
judiciary. A strong judiciary is thus a check on the Mughal tendency
which shapes the spirit of governance in Pakistan. By the same token
an attack on the judiciary, or the person who sits at its apex, is an
attack on the fundamental rights of every citizen of Pakistan.
So portentous a matter if you think closely about it. And yet so small
the outrage it has occasioned. The reason for this no doubt lies in
the impoverishment of our public morality. So inured have we become to
scandals and shenanigans that nothing amazes us anymore.
Not even such priceless news as the reported offer of Ms Bhutto to
make Senator Jehangir Badr the chief justice of Pakistan. No doubt
this offer (at a gathering of the party faithful) was made in jest.
But then it is a measure of the steep road down which we have
travelled that some years ago no Pakistani ruler would have had so
complete a lack of culture as to utter a joke in such poor taste.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960130
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Pakistan: no cause for dismay
-------------------------------------------------------------------
Irshad Ullah Khan
THE greatest liberty we have is in knowing that everything dies in our
universe. This thought equalises all. The mega-sun to the smallest of
stars. The super-human to the disabled wanderer in the streets.
Political systems as such are logical only till they serve the people.
The collapse of the Soviet Union was the result of a system that had
stopped serving the very people for whom it had been so closely
designed. Now whether the present system in Russia can survive also
depends upon its fulfilling the dreams of the people, or shall we put
it better, by meeting the needs of the people.
The purpose of this article is not to discuss in detail the dying of
systems or why they die. Nor does it aim at establishing a theory of
developing systems that never die. The purpose here is to discuss
briefly that mega-guerilla war, the Afghan event, that largely shaped
our relationship with the United States of America and so dominated
the politics of this region while it lasted.
The aim of this war, as far as the United States was concerned, was
only one: to bleed the Soviet Union to death financially and divert
its vast energies to an un winnable war so that its agriculture, its
industry and its capacity to look after the every-day needs of its
people would come to an end. Who were to be the warriors? Who were to
be the front-line managers acting for the superpower? In this the
United States found Pakistan a ready ally and the Afghan people
wonderful warriors. It did not have to worry about any problem
directly affecting it. No body bags to be sent home. Here at the end
of the century lived two nations who could put forward the idealism of
Islam before them and so battle without fear for life. What wonderful
allies to have?
The system then set its sights. The Afghans were vulnerable from the
skies. They could take on a tank with a vintage 303 rifle if
necessary. But then this bravado was self-defeating. With modern
weapons, these tigers of men could take on anyone. The Stinger missile
was a great gift. It turned the tide of battle. Now the helicopters
with their sights trained on moving men and signs of smoke hinting of
men around a hastily prepared meal were vintage compared to the swift
and deadly outcome of a single stinger burst.
The question now was: how long could the Soviet Union continue to lose
its aircraft and have the ability left to reinforce its ground troops?
Many other weapons were introduced by the United States but the
Stinger continued to be the dominant one.
With bodybags flying home and public opinion building up against a
war-drenched faltering economy, the tide of battle for the Soviets
began to change. It was now only a question of when. It came swiftly
with the Soviet Union withdrawing. They could have used their awesome
power to win.
They could have flattened Afghanistan and Pakistan with atomic
reprisals. But the great Soviet spirit born of music and literature
and the arts could not countenance such destruction. So it withdrew
from death, hoping that life would grow where it left. It was a
similar event as the American withdrawal from Vietnam.
What were we left with after this war? Hordes of drug-addicts and the
Kalashinkov culture in Pakistan. A nation that concentrated so
savagely on the Afghan war that it forgot to educate its own people,
to feed them properly and to provide medical facilities for them. Our
system of governance had collapsed in this period of the Afghan war.
In Afghanistan we have a nation of largely divided Afghans so
paranoically engaged in fighting each other that they cannot agree on
a common formula for peace or on an interim arrangement for
governance.
It is not only the Soviet Union that lost this war. Both Pakistan and
Afghanistan have lost the victory they thought they had won.
Does this diminish Pakistans geographic and political importance in
this region? Are we still chasing the illusion of a holy war?
On one side we have India which seeks to compete with the United
States as a superpower. Its military budget and research into new
weaponry are aimed at challenging the lead of the United States in
this field. The new Indian missiles and their advances in radar
research in some cases are ahead of United States technology. Their
advances in industry and their ability to sell consumer items from
airconditioners, refrigerators, washing machines to cars and power
systems at half the price of those produced in the United States
threaten the very economy of the United States.
India with its eight hundred million-odd population can afford to
slash its prices and challenge the productivity and competitiveness of
the United States in the world markets.
On the other side of Pakistan we have nations which are determined to
bring the long-awaited renaissance of Islamic thought and ideology to
fruition.
For the United States the Indian option and the Islamic option pose
equal dangers. The first threatens its economic life and the second
confronts its spiritual ideals. Both are interlinked and in time
thrive on each other. Therefore, in Pakistan we should not worry too
much on our being isolated in a world where mainly Machiavellian self
interests matter. We are the buffer state. A country where people are
largely forgiving and moderate. A nation that bears its religion in
its soul and not on the sharp edges of its weapons.
On us depends the future of this subcontinent and the intellectual and
moral influences that will determine the idealism of Islam in the
region. We have our borders touching or close to those of the new
independent states of the former Soviet Union. A lot on how they react
will depend upon how we act. We can become the Switzerland or
Singapore of this region. We have vast resources as yet untapped. A
buffer state yes but what a buffer state! With a long coastline and
rich plains and deserts and mountains that promise crops, and oil and
gas, and vast minerals, and men and women capable of reaching the
greatest heights we are in an ideal situation to bargain for our own
prosperity in a world where there are no permanent friends.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960131
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Blandishments for victory
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Editorial Column
SPORT was supposed to be not a question of winning at all costs but of
playing the game well. Defeat and victory were unimportant as long as
you had put in your best and had conducted yourself fairly.
Admittedly, in the world of professional sport, where sport is a
thriving industry rather than anything that the ancient Greeks would
recognise, this sounds like a quaint notion. Modern sport is a
fiercely competitive business in which the biggest rewards are for
winning. But even against this inevitable backdrop, the incentives for
the Pakistan cricket team announced by Mr Asif Ali Zardari, who heads
the committee looking after the arrangements for the World Cup, are
breathtakingly materialistic. If our team wins the cup, he has
declared, every player will get a residential plot in Islamabad and
his share of Rs five million which will be distributed amongst the
team. If this be the price of modern sport, then there is something
terribly wrong with it.
There is no question about it that as a nation we need to do more to
encourage every kind of, sportfrom cricket, hockey and athletics to
kabaddi and wrestling. For a nation of a hundred and twenty or thirty
million souls our impact on the world sporting scene is so pathetic as
to be almost an affront to our national pride. But the way to
encourage sport is not to hold a bunch of carrots before a squad of
men who only understand the language of money but to nourish and train
our young and to spend a trifle more than we do on setting up new
sporting facilities throughout the country. The Pakistan cricket team,
as indeed any other Pakistan team, should be putting in its best as a
matter of course and as a matter of personal pride and not because of
the prospect of residential plots or heaps of money. There is, of
course, an element of big money in sport nowadays because of the
sponsorship of private companies. To get such sponsorship is every
sportsperson's privilege. But between this and the blatant incentives
announced by Mr Zardari there is a world of difference. Certainly
sportsmen should not get a shabby deal. They must get the best
facilities and be looked after properly. But if they are inspired to
stretch their capabilities only by the prospect of profit and other
benefits, then they are doing no service to their game or to the
nation which exults in their victories and is cast down by their
defeats.
As the hosts of the World Cup we should be putting our best foot
forward: cleaning up our cities, improving our transport facilities
and ensuring that a check, even if a temporary one, is kept on the
indiscipline which is so much a part of our national character. These
are the things that we should be concentrating on. As for our
cricketers, we should be expecting them to take their training
seriously and to take their minds off the jealousies and the intrigues
which have reduced them from cricketing champions to cricketing
bumpkins. But they should be doing this for the joy of competing,-for
the thrill of playing before their own people and for the pure
pleasure that a well-deserved victory brings and not for any plots in
Islamabad promised to them by Mr Zardari.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960201
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Living up to commitments to IMF
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Sultan Ahmed
ELABORATE details of the binding commitments to the IMF in the fiscal,
monetary and overall macro-economic sector have been published which
makes pretty chilly reading. They have not been released for
publication by the government but by city newspapers, as was the case
with the details of the ESAF. The government entered into rigid and
varied commitments to obtain a stand-by arrangement of 600 million
dollars for 15 months beginning from December last in place of the
scraped Enhanced Structural Adjustment Facility over three yeas to get
1.5 billion dollars from the IMF.
Publishing details of commitments with foreign countries or major
multilateral donor agencies has not been part of our tradition as that
can be too embarrassing and can give rise to heated controversies.
The detailed commitments now entered into are subject to continuous
monitoring and inspection by periodic visits of IMF missions, like the
one which has already arrived on a fortnight visit, prior to giving
150 million dollars more following the 200 million already provided.
The commitments may seem a violation of Pakistans economic
sovereignty to the unwary, but they are more like the commitments
undertaken by Pakistan for the 1.5 billion ESAF deal violated by the
current years budget, the excessive bank borrowing of the government
and other deviation and not very different from the agreements with
IMF over the last 20 years, but are more detailed, and subject to
greater scrutiny and swifter punishment.
These conditionalities are not far different from what a prudent
private sector banker would come up with when lending to a profligate
borrower, except in the case of the private sector deals the bank can
foreclose on the assets mortgaged, and the IMF cant do that with
sovereign nations.
The new commitments show the kind of price the country has to pay for
its financial folly, and economic lapses, of over decades of
government spending far beyond their means, with large administrations
from top to bottom doing so little for the good of the people or
economic growth of the country. They spared the agricultural rich from
taxation and developed a fiscal system in which excessive cumulative
taxation in some areas co-exist with excessive corruption in the
taxation machinery. Along with that, high economic growth targets were
followed by poor performance and yet the official efforts have been to
sustain a phoney euphoria instead of getting down to doing first
things first in a heavily populated poor country with a high
population growth of 3 per cent and markedly high expectations, but
poor per capita income growth.
The importance of the IMF as the worlds monetary agency to Pakistan
does not lie in the volume of money it lends at very low interest
rates, but the chit of economic health from it necessary to get a fair
deal from the World Bank, Asian Development Bank and other donors,
including Japan, Pakistans largest aid-giver following the fading out
of the US in this area. Without such a chit Pakistan will find
borrowing from world currency markets on short term difficult and
foreign investors on whom we are depending excessively now will not be
excited about coming to Pakistan.
This does not mean the IMF is always right and it does not give
contradictory advice and come up with self-defeating programmes in
developing countries and that it does not have the same kind of
economic pills to prescribe for various economic ills of developing
countries quite different from each other. But after mismanaging their
economies for long due to bad politics and worse administrations,
countries like Pakistan have hardly any other option, save increasing
self reliance.
Over the years the officials who had negotiated various deals with the
IMF had argued that if the going got too tough they could always
deviate or resile from some of the commitments, while paying homage to
the whole package. Hence the IMF has been tightening the screws more
and more and sending more inspection teams to Pakistan.
Will that happen again now? The government has agreed to raise the
value of the Produce Index Unit (PIU) for wealth tax purposes from Rs
250 (it was raised from Rs 200 this year) to Rs 400, and include farm
machinery cars and farm houses as assets for tax purposes. The
farmlords had resented all such moves in the past. Will they fall in
line now after they have failed even the Ushr collection totally? And
can the government compel them?
At the other end a hefty turnover tax of two per cent is to be levied
on cottage industry. The small scale sector which has been growing at
a steady 8.2 per cent annually despite small assistance from the
government and very little of bank loans will resent this tax, and
collecting the full revenues may be too difficult.
Industry and consumers in general will welcome reduction of import
duties to an average of 50 to 55 per cent from July 1 after scraping
the 10 per cent regulatory duty levied by the mini-budget. But what is
given through reduction in import duties may be taken away by the
General Sales Tax which is to be converted into the Value Added Tax
(VAT) at the manufacturing and import stage. Exemptions from GST are
to be done away with, except for a few basic items like food stuff,
fertilisers and pesticides, and all exemptions which are a part of tax
packages to a sector or region have to go. And GST is to be extended
to the capital goods along with immediate refund of unused tax credit.
All industries under capacity tax schemes will be brought under the
regulatory GST regime when the capacity tax schemes expire.
At the other end the government has agreed there will be no salary
increases in the next budget despite the 13 per cent inflation
officially and far higher actually? Government employees are already
too restive and have been campaigning for higher salaries. Can the
government ask them to lie low for another year?
The IMF talks of lowering the inflation from the current persistent
13 per cent and the government talks of bringing it down to a single
digit to meet the 9 per cent target earlier set for the current year.
How can that be achieved when the farmers are pressing for higher
support prices, and right now sugar cane growers are not content with
even Rs 27 per 40 kg at which the sugar mills are buying cane in Sindh
instead of the officially fixed Rs 21.75, and are insisting on Rs 35
to Rs 40 as Punjab cane-growers are demanding.
Now if they have to pay wealth tax at Rs 400 per PIU and let the
agricultural machinery, cars and farm houses also to be taxed, they
will demand for higher farm prices. If along with that, higher or more
widespread VAT is to neutralise the reduction in import duties, and
the additional taxation of 1.4 per cent of the GST to be levied by the
next budget raises about Rs 30 billion more as taxes, the volume of
bank credit to producing units is to be reduced and interest rates are
to remain at their peak, how can inflation come down?
Meanwhile, the government has gone on a wild bank borrowing spree, and
instead of the target of Rs 28.1 billion set for the whole year and Rs
18.24 billion borrowed in the same six months last year, it has
borrowed Rs 41.2 billion in the first half of the financial year. The
borrowing has come down from its peak of Rs 55 billion earlier, but
that is small relief. If the government is going to use so much of the
credit at a time when State Bank of Pakistan is restricting credit as
a whole excessively in its efforts to bring down inflation, what
chance has the producing sectors to get adequate credit and at
reasonable rates?
The IMF also wants the defence spending to be brought down next year
below the 5.3 per cent of the GDP committed this year. Will the
government really honour this commitment at a time of increasing
tension between India and Pakistan, or will other sectors be asked to
share some of the defence burdens?
Along with that all, the commitment is to bring down the budget
deficit in the second half of this financial year to 4 per cent so
that along with the higher deficit in the first half of the year the
total will be 4.6 per cent for the whole year compared to 5.6 per cent
last year. That means the governments spending has to shrink a great
deal, and all lavishness on its part at the higher levels along with
it costly ceremonies or phoney carnivals have to go. Will they? The
trend is not in that direction.
The economic growth rate which was earlier targeted at 6.5 percent is
to come down to 5.6 percent this year despite the vastly improved
cotton crop and an expected good wheat crop. Evidently if the growth
is to be less the official spending, too, must be less and efforts to
collect larger revenues must focus on reducing, if not eliminating,
the vast corruption in the taxation services, beginning with the
Customs. Pre-shipment inspection by two foreign companies may help
reduce tax evasion by regular importers, but cannot stop the vast
customs-aided smuggling, like the plane-load of whisky bottles flown
in from the Gulf and promptly cleared by the Customs.
After such rigid and vast commitments, the people would like to see
how much of that is honoured or whether the old deviations will be
repeated again, and if all that would bring additional hardships, how
much of that will be shared by the ruling rich with their varied
privileges and vast exemptions.
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960201
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Recognition at last?
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Editorial Column
ARE we as a nation beginning to recognise the greatness of our science
Nobel laureate, Professor Abus Salam? It was heartening to observe
that Dr Salam's seventieth birthday was celebrated nationally on
January 29 and his services to science duly eulogised (This was in
marked contrast to his sixtieth birthday, ten years ago, when no
notice was taken of the event) Whether this belated recognition will
give our leading scientist any satisfaction in the twilight of his
life when ill health robbed him of his capacity to play an active role
is difficult to say. But the fact is that since he won the Nobel Prize
for Physics in 1979 Prof Salam has received more acclaim
internationally than in his home country. He has won 20 prestigious
international awards and has received honorary doctorates from 36
universities from all over the world.
True, the Pakistan government did confer Nishan-i-Imtiaz on him in
1979 and the Quaid-i-Azam University awarded him an honorary
doctorate. But that was about all that we did in honouring illustrious
son-of Pakistan. What is more discouraging is the cavalier treatment
meted out to Prof Salam in this country. He has not been given the
welcome he deserved as our science hero. Worse still, his repeated
efforts to give a boost to science in Pakistan have been coldly
spurned. His exhortations to the successive governments to promote
science education and research in the universities and other
institutions, too have fallen on deaf ears. Nothing could be a bigger
insult to a scientist who is a giant in his field. Earlier, he at
least enjoyed an important status in his different capacities as
scientific adviser to the president member of the National Science
Council, Pakistan Atomic Energy Commission and the Pakistan Science
Foundation. But since 1975 he has been cold-shouldered, not
considering it necessary to involve him in policy planning on science
and education. The loss is ours and not Dr. Salam's, for his talent
and experience as a leading light of science have been amply regarded
and harnessed elsewhere in the world.
Whatever the, reason, one thing is plain. The authorities in
Islamabad, irrespective of whoever has been at the helm at a given
time, have never welcomed advice from any quarter to spruce up its
approach to science. Small wonder then that Pakistan is way down the
scale in the world of science. It has only 71 scientists per million
population as compared to India's 147 and less than 10 percent of
them are engaged in research when other countries have as many as 55
percent of their scientists conducting research. This is not
surprising in view of the de-emphasis on education generally and
science particularly. Thus, only 0.5 percent of the GNP is allocated
to science in Pakistan when UNESCO has recommended two percent for
this purpose. Prof Salam has on several occasions lamented this sorry
state of affairs and suggested ways and means of rectifying these
weaknesses in our system. If Pakistan ready wishes to pay a tribute to
its Nobel laureate, it must put its acts together and ginger up its
performance in the field of scientific education and research.
===================================================================
960127
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World Cup mascot unveiled
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KARACHI, Jan 26: The sixth World Cups mascot was officially launched
in a hurriedly called ceremony at a local hotel.
The mascot, called `Googlee, was displayed by Chief Executive of the
Pakistan Cricket Board (PCB), Arif Abbasi. Also present on the
presentation was Mohammad Tahir Memon, representative of the Pakistan
Tobacco Company (PTC), the sister organisation of Indian Tobacco
Company (ITC) who are the sponsors of the World Cup.
The description of the mascot is something like this:
A cricket ball is wearing the helmet. Hands and legs emerge from the
ball which are equipped with protection guards and the bat in his left
hand. The ball, no doubts, appears, perhaps singing the theme which
is: Share the Magic.
Googlee was conceptualised and designed by Hindustan Thompson
Associates (HTA), Calcutta, and the final choice was made from a host
of options.
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960130
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Incentives for World Cup players announced
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LAHORE, Jan 29: Each of the 21 members of the Pakistan team (including
the four reserves and three officials) has been promised a lucrative
package of incentives by the World Cup Committee Chairman Asif Ali
Zardari (MNA).
Asif Ali Zardari said that if the Pakistan team succeeded in retaining
the title, every member will be given Rs 50,000, a plot of 500 yards
each. He promised that the multi-national companies will be requested
to sponsor all the members of the squad for ten years. He said that
the incentives were being offered not only to make the future of the
present lot of cricketers secure but also to lure the youth of the
country to take to sports to build a healthier nation.
Zardari said national prestige will be enhanced by successfully
hosting the sixth World Cup Cricket Tournament. The money earned by
the World Cup Committee will be spent on publicity abroad for raising
the image of Pakistan as a liberal country having rich cultural
heritage.
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960128
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PTV-PCB controversy re-emerges
-------------------------------------------------------------------
Farhana Ayaz
ISLAMABAD, Jan 27: There is no urgency in resolving the PTV-PCB row
over coverage of domestic cricket in the country. However, the matter
has created doubts between the two organisations prior to the World
Cricket Cup commencing on Feb. 14 in the sub-continent.
It has been learnt that the rekindled rift involves a part of the
agreement concerning the 50 minute recorded highlights of the domestic
matches. There is no disagreement on the live coverage of the domestic
cricket games between local teams which Pakistan Television network
can televise free of cost. However, controversy re-emerged following
differences in the agreement on the recording of the 50 minute
highlights in which in addition to a payment of US $ 50,000, five
minute commercials are also to be provided by the cricket board to
PTV.
It is learnt that while PCB wants to pay the amount it was backing out
over the five minute commercial point, the Pakistan Cricket Board
already hired a TWI producer, Mark Lynch, based in Bombay to produce
the highlights for the network. The highlights were also to be
televised on the satellite.
Speaking on terms of anonymity, an official of PTV said that the
five minute commercials mean a lot of revenue to the corporation.
However he said the amount cannot be disclosed at the moment. He
accused the cricket board of working for the interests of TWI, the
televising wing of IMG to whom the domestic cricket coverage rights
have been sold. The PTV has been taken as a scapegoat here, the
official said.
The official said that the PTV is watching the situation closely
although there is no urgency to resolve the issue which is of lesser
importance considering the World Cup is just round the corner.
However, he added that the PCB handling has created `bad faith
between the two organisations since the two will be jointly working to
produce the competition to the millions of viewers and cricket fans in
Pakistan.
The controversy over coverage of domestic cricket involving local
teams was settled him the PCB chief executive obliged a no objection
to the Pakistan Television network on Jan 16 after PTV had stayed away
from the two semi-finals of the National One-dayer. But, three days
later, when the final of the National One-day Cricket Tournament
between PIA and Rawalpindi-A was being televised live from
Shiekhupura, the rift was rekindled.
Apparently, the PCB chief executive decided to withdraw the no
objection on 19 and followed it up with a letter to MD PTV on 20th
stating that he was under the impression that the document was in
accordance with the agreement forwarded by TWI. It was stated that PTV
authorities has kept the document intact and will not be interested in
giving it back as requested unless negotiations are held to see what
agreement can be reached.
The cricket board views that it is not entitled to sign an agreement
with PTV over the domestic coverage, once the rights have been sold to
IMG, herefore the national network should sign an agreement with the
company. The PTV officials had stated that since the coverage rights
have been sold to IMG, they feared of being sued by the company
through international court.
Pakistan television has paid an enormous amount of US $750 to WorldTel
to cover World Cup matches in Pakistan after PCB sold sole rights of
World Cup coverage to the American company. A total of 17 world cup
games will be played in Pakistan at different centres, with the
opening fixture between UAE-South Africa at Rawalpindi on Feb. 15 and
the final being at Lahore on March 17.
It is not known how much PCB has received by selling the coverage
rights to WorldTel and Grand Slam, the two companies responsible for
the World Cup coverage. The Pakistan Television (PTV) has been
assigned to play a vital role in the forthcoming World Cup, as its
cameramen, producers and engineers will be jointly working to televise
the World Cup fixtures. PTV will also be catering to cricket
commentary in the 16 fixtures to be held here. Besides, the big
cultural extravaganza will be also be covered by the national
network.
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960130
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TV row continues to cloud World Cup
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NEW DELHI, Jan 29: With the World Cup less than a fortnight away, it
is still uncertain whether audiences around the world will be able to
watch live television coverage of the mega-event.
The bone of contention is the ongoing row over TV rights, which shows
no signs of being resolved. Indias state-run Doordarshan network has
gone to court over the organisers decision to cancel its contract for
exclusive satellite rights because of a financial dispute and award
them to the pan-Asian network STAR TV.
When the Delhi High Court passes judgement on the case this week, it
is almost certain that the losing party will appeal to the Supreme
Court, further delaying a final decision on the contentious issue.
A big question mark also hangs over whether the Indian government will
allow the London-based Grand Slam company, the official TV producers
of the World Cup, to beam Indias 17 matches live around the world.
India prohibits foreign TV companies from uplinking with satellites
from its soil for security reasons, and World Cup officials fear the
government may deny permission if Doordarshans rights are not
restored.
An Indian politician added a touch of intrigue to the issue earlier
this month by granting uplinking facilities to Grand Slam in his
capacity as a cabinet minister, despite Doordarshans objections.
Madhavrao Scindia, who heads the World Cup organising committee, gave
the permission shortly before he resigned from the government on
corruption charges.
Cricket officials are unsure if Scindias go-ahead would hold after
his resignation, and are contemplating legal action against the
government if the permission to uplink was refused.
Co-hosts Pakistan and Sri Lanka, who have received uplinking
permission from their respective governments, have already offered to
take Indias 17 matches, including the two semi-finals.
If the TV row was not resolved. You cant have a World Cup if the
matches are not shown live on television, a Pakistani cricket
official said. If India cant solve its problems, we are ready to
step in.
PILCOM has sold the rights to various networks around the world, and
going back on those deals will cost us heavily, he said. Observers
here believe one way out of the impasse was an out-of-court settlement
in which both Doordarshan and STAR are allowed to telecast the
tournament.
The World Cup, crickets premier limited-overs contest, runs from
February 11 to March 17. Pakistan will host 16 matches, including the
final at Lahore, while Sri Lanka will hold four league games.
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PLAY THE WORLD CUP LIVE BE THERE WITH YOUR DREAM TEAM
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
Announcing the dream team competition. Your chance to select your own
cricket team, track its performance in the World Cup and all this from
the comfort of your home!
HOW TO PLAY
February 14 - March 18 1996, the 6th World Cup will be played in
India, Pakistan and Sri Lanka. A total of 168 players, 14 from each of
the 12 countries will play the World Cup.
1 Pick 14 players out of the 168 play ers of the 12 participating
teams. All teams must not include more than 2 players from any of the
12 participating countries.
2 Once you have selected your Dream Team and your entry has been
registered you are ready to play in the World Cup. The progress of
your Dream Team will be calculated and monitored by the Dream Team
Score System.
3 The Dream Team Score System will calculate the performance of the
players of each Dream Team. The winning Dream Team is decided on the
basis of the following.
SCORING SYSTEM
Every run scored by your team member 1 point
Every wicket taken by your bowler 20 points
Every catch/stumping taken by your fielder 5 points
The points of all 168 players, including those in your Dream Team,
will be accumulated. At the end of the -Tournament, the Dream Team
with the highest number of accumulated points will be declared the
winner.
4 You entry form must reach this address
e-mail Address:
dws@biruni.erum.com.pk
Postal Address:
Dream Team
DAWN Newspaper
2nd Floor Haroon House,
Dr. Ziauddin Ahmed Road,
Karachi 74200,
PAKISTAN
not later than February 13, 1996. On receipt, your entry form will be
offically registered in the Dream Team Competition. No amendment can
be made once registration is completed. In the event of, and for
whatever reason, the player/s selected by you does/do not play in one
or more or all matches, the performance of only the remaining players
in your team will be calculated. In the event of, and for whatever
reason, a no match/abandoned match situation arises, no point will be
awarded to the players.
5. Your Dream Team must include atleast one wicketkeeper, 3 specialist
batsman and 3 specialist bowlers.
COMPETITION ENTRY FORM
Applications which do not comply with the rules of the Dream Team
Competitlon will be disquahfied. (Please use block letters)
Name:
Age:
Education:
Profession
Family Size:
Address:
Postcode:
Country
ID Card No.:
Passport No.:
Select your Dream Team and then write the number and name of the
player choosen.
AUSTRALIA
1 MARK TAYLOR (C)
2 AN HEALY (vc) (WK)
3 MICHAEL BEVAN
4 DAMIEN FLEMING
5 STUART LAW
6 SHANE LEE
7 CRAIG McDERMOTT
8 GLEN McGRATH
9 RICKY PONTING
10 PAUL REIFFEL
11 MICHAEL SLATER
12 SHANE WARNE
13 MARK WAUGH
14 STEVE WAUGH
ENGLAND
15 MICHAEL ATHERTON (c)
16 ALEC STEWART (vc) (WK)
17 DOMINIC CORK
18 PHILLIP DE FREITAS
19 NEIL FAIRBROTHER
20 DARREN GOUGH
21 GRAEME HICK
22 RICHARD ILLINGWORTH
23 PETER MARTIN
24 JACK RUSSEL
25 NEIL SMITH
26 ROBIN SMITH
27 GRAHAM THORPE
28 CRAIG WHITE
HOLLAND
29 STEVEN LUBBERS (c)
30 REINOUT SCHOLTE (vc)
31 FALVIAN APONSO
32 PAUL JAM BAKKER
33 PATER CANTRELL
34 NOLAN CLARKE
35 TIM DE LEEDE
36 ERIK GOUKA
37 FLORIS JANSEN
38 ROLAND LEFEBVRE
39 MARCEL SCHEWE
40 KLAAS JAN VAN NOORTWIJK
41 ROBERT VAN OOSTEROM
42 BAS ZUIDERENT
INDIA
43 MUHAMMAD AZHAR-UD-DIN (c)
44 SACHIN TENDULKAR (c)
45 SALIL ANKOLA
46 AJAY JADEJA
47 VILOD KAMBLI
48 AASHISH KAPOOR
49 ANIL KUMBLE
50 SANJAY MANJREKAR
51 NAYAN MONGIA (WK)
52 MANOJ BARBHAKAR
53 VENKETSH PRASAD
54 VENKATAPATHY RAJU
55 NAVJOT SIDHU
56 JAVAGAL SRINATH
KENYA
57 MAURICE ODUMBE (c)
58 ASIF KAREEM (vc)
59 RAJAB ALI
60 DEPAK CHUDASAMA
61 TARIQ IQBAL
62 HITESH MODI
63 THOMAS ODOIO
64 ADVERD ODUMBE
65 LAMECK ONYANGO
66 KENNEDY OTIENO
67 MARTIN OWITI
68 BRIJAL PATEL
69 DAVID TIKOLO
70 STEVE TIKOLO
NEWZEALAND
71 L.K. GERMON (c) (WK)
72 N.J. ASTLE (vc)
76 C.L. CAIRNS
84 S.P. FLEMING
74 C. HARRIS
81 R. KENNEDY
80 G.R. LARSEN
78 D.K. MORRISON
77 D.J. NASH
73 A.C. PARORE
79 D.N. PATEL
75 C. SPEARMAN
83 S.A. THOMPSON
82 R.G. TWOSE
PAKISTAN
85 WASIM AKRAM (C)
86 MMIR SOHAIL (VC)
87 IJAZ AHMED
88 MUSHTAQ AHMED
89 SAEED ANWAR
90 INZAMAM-UL-HAQ
91 MQIB JAVED
92 RASHID LATIF (WK)
93 SALIM MALIK
94 JAVED MIANDAD
95 SAOLAIN MUSHTAO
96 RAMIZ RAJA
97 ATA-UR-REHMAN
98 WAQAR YOUNIS
SOUTH AFRICA
99 HANSIE CRONJE (C)
100 CRAIG MATTHEWS (VC)
101 PAUL ADAMS
102 DARYL CULLINAN
103 ALAN DONALD
104 FANIE De VILLIERES
105 ANDREW HUDSON
106 JACOUES KALLIS
107 GARY KIRSTEN
108 BRIAN McMILLAN
109 STEVE PALFRAMAN (WK)
110 SHAUN POLLOCK
111 JONTY RHODES
112 PAT SYMCOX
SRI LANKA
113 ARJUNA RANATUNGA (C)
114 ARAVINDA De SILVA (VC)
115 MAVAN ATAPATTU
116 UPUL CHANDANNA
117 KUMARA DHARMASENA
118 ASANKA GURUSINGHE
119 SANATH JAYASURIYA
120 R0MESH KAWWITHARANA (WK)
121 ROSHAN MAHANAMA
122 MUTTIAH MURALITHARAN
123 RAVINDRA PUSHPAKUMAR
124 HASHAN TILLEKERATNE
125 CHAMINDA VAAS
126 PRAM0DAYA WICKREMASINGHE
UAE
127 SULTAN ZARWANI (C)
128 SAEE D ALSAFFAR (VC)
129 IMTIAZ ABBASI (WK)
130 SHAHZAD ALTAF
131 MOHAMMED ASLAM
132 SHAUKAT DUKANWALA
133 SHEIKH MAZHAR HUSSEIN
134 MOHAMMAD ISHAO
135 ARSHAD LAIO
136 VIJAY MEHRA
137 GANESH MYLVAGANAM
138 SALIM RAZA
139 SYED AZHAR SAEED
140 JOHANNE SAMARASEKERA
WEST INDIES
141 R.B. RICHARDSON (C)
142 J.C. ADAMS
143 C.E.L. AMBROSE
144 K.L.T. ARTTHURTON
145 I.R. BISHOP
146 C.O. BROWNE (WK)
147 S.L. CAMPBELL
148 S.C. CHANDERPAUL
152 C.E. CUFFY
149 O.D. GIBSON
150 R.A. HARPER
151 R.l.C. HOLDER
153 B.C. LARA
154 C.A. WALSH
ZIMBABWE
155 A. FLOWER.(C/WK)
156 E.A. BRANDES
157 A.D.R. CAMPBELL
158 S. DAVIES
159 C.N. EVANS
160 G.W. FLOWER
161 A.P.C. LOCK
162 H.R. OLONGO
163 S. G. PEALL
164 H.H. STREAK
165 P.A. STRANG
166 B.C. STRANG
167 A. C. WALLER
168 G. J. WHITALL
38
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