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DAWN WIRE SERVICE
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Week Ending : 04 April 1996 Issue : 02/14
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Nine men killed in shootout this week
Implementation afoot 10 SCs own judges, claims PM
Nawaz offers help in evolving procedure
President confirms the SC judges
No constitutional crisis: SHC CJ
Sajjad inducts three permanent judges
The legal eagles of the prime minister
A new method of protest
Mobile phone firms told to submit list of subscribers
Islamabad rebuts Delhis charge of meddling
Mission asked to take up Andrabis murder issue.
JKLF chief Shabbir, 29 others slain in valley
Nawaz not to launch parallel policy
PM warns of tragic outcome of Indian N-test
Altaf flays killing of activists
MQM alleges govt sponsored attack on 90
PM accepts oppositions offer of coorporation
Nawaz sets terms for response to PM offers
PML alleges bogus entries in voters list
LHC stays proceedings against Imran
Imran Khan to enter politics this month
KESC likely to be privatised by year-end.
Strike affects life in Karachi areas & continues today
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Forex reserve plunge to two-year low
Borrowings fall to Rs 65.9bn
Power project sponsors want govt to arrange soft loans.
The privatisation of UBL
Market still groping for direction
Mixed performance on stock market
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The judiciary Triumphs - II Ardeshir Cowasjee
IMF - BOI controversy Editorial Column
A carefully judged advance M.B.Naqvi
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Seeded Del Harris falls in British Open
Pakistan may keep hold on British open
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960404
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Nine men killed in shootout this week
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Staff Reporter
KARACHI, March 28: Several MQM workers, died in an encounter with police
this week. Some of the victim was identified as Mohammad Yameen, Kaleem,
Shaheed and Aslam Nunka.
The police version said Yameen was a proclaimed offender and was wanted
in 38 cases of murder, attempt to murder, dacoity, firing, arson, etc.
The MQM however disputed the police version of the encounter and said
Yameen had been in custody since March 26.
In another incident a leading MQM worker wanted by the authorities in
over 40 cases of murder was killed in an alleged shoot-out with the
police.
In yet another incident Three Mohajir Qaumi Movement (MQM) workers were
killed in encounters in Korangi.
Inquiries made by Dawn, however, showed both the victims had been in the
police custody for the last several weeks, and the mother of Shakir had
filed a constitutional petition in the Sindh High Court challenging the
illegal detention of her son.
Relative of the victim alleged two of the arrested party workers had
been released after the police accepted hefty bribes. The fourth
worker, Mohammad Iqbal, they said, is still in the custody of New
Karachi police.
Relatives also told the reporter that initially the family was asked to
arrange for Rs200,000 for Shakirs release. The amount was later brought
down to Rs150,000 but the family was poor and thus was unable to arrange
for the money.
On Saturday, the family received the final warning from the police that
if the money was not arranged, Shakir would be killed in an encounter.
On Monday when his body was brought to Abbasi Shaheed Hospital, injuries
on his ankles caused by bar fetters were still fresh and clearly
visible.
The police handout claimed to the contrary and said that Mohammad
Zubair, who was wanted in dozens of murder cases, had gone to Korangi
with some party companions to extort money from the residents when
police challenged him an encounter followed.
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960329
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Implementation afoot Order hits 10 of SC's own judges, claims PM
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Mohammad Malick
ISLAMABAD, March 28: Prime Minister Benazir Bhutto has said that the
status of 10 judges of the Supreme Court, including the chief justice,
would become "invalid" once the Supreme Court verdict is implemented in
letter and spirit.
In a hard hitting speech in the National Assembly on Thursday, the Prime
Minister made an almost clause to clause rebuttal of the Supreme Court's
short order while also insisting that the government was in the process
of implementing the verdict.
Mincing few words in her criticism of the verdict, she said the
government had never intended to deny the implementation of the order.
However, she added, the short order was "not ordinary" and required time
for "understanding its far-reaching consequences."
The Prime Minister came down particularly hard on the verdict's portions
dealing with the curtailing of the executive's powers of nominating
judges to the superior judiciary. She said that the court had ruled that
an acting chief justice was not a "consultee" as envisaged by the
Constitution and, therefore, the constitutional requirement of
consulting a chief justice was not fulfilled. She said if this reasoning
were followed, then 10 out of 16 Supreme Court judges, including Chief
Justice Syed Sajjad Ali Shah, would stand disqualified as all of them,
too, had been appointed as additional judges of different high courts
with the "consultation" of the then respective acting chief justices.
She said that this order (Conclusion No XIII of the short order) would
open a Pandora's box because acting chief justices had been appointed
under the 1973 Constitution ever since its enforcement. The Prime
Minister went on to express the apprehension that this order could "lead
to a large vacuum in the judicial structure."
She argued that according to the Constitution once an oath had been
administered to an additional or an ad hoc judge, "he was a judge for
all purposes" and could only be removed under Article 209 of the
Constitution.
Reverting to the order, she pointed out that three of these "invalid"
judges had sat on the very bench of the Supreme Court which had
announced this verdict. The 10 judges identified by the Prime Minister
were Mr Justices Sajjad Ali Shah, Ajmal Mian, Saleem Akhtar, Fazal Ilahi
Khan, Zia Mehmood Mirza, Muhammad Ilyas, Muhammad Munir Khan, Mir Hazar
Khan Khoso, Irshad Hasan Khan and Sheikh Riaz Ahmed.
Ms Bhutto said the government had also decided to invoke the advisory
jurisdiction of the Supreme Court under Article 186 of the Constitution.
"Meanwhile, without prejudice to our position in seeking as advisory
opinion and while recording our reservations we have started
implementing the order," she added.
The government's decision to invoke Article 186 instead of filing a
straightforward review petition against the judgment comes across as an
interesting legal move, enabling the government to seek a revisal of the
verdict without submitting to it in spirit or principle. Article 186
reads:
Clause (1): "If at any time, the president considers that it is
desirable to obtain the opinion of the Supreme Court on any question of
law which he considers of public importance, he may refer the question
to the Supreme Court for consideration".
Clause (2): "The Supreme Court shall consider a question so referred and
report its opinion on the question to the president."
The Prime Minister went on to state that this judgment had not been
against the executive but an order "by the judiciary against the
judiciary where judges may face the unfortunate risk of being dragged
into litigation. "We do not want to see the majesty and awe of the
judiciary undermined by ridicule and crude behaviour, witnessed since
the passing of this order," she added.
Denying the impression about the existence of a judicial or
constitutional crisis, she said all three organs of the state, namely
the executive, parliament and the judiciary were working in full
cooperation. She said the government was working in full consultation
with the judiciary and informed the House that the appointment of three
ad hoc Supreme Court judges had been confirmed in the earlier part of
the day while the "consultation process" for the appointment of
permanent chief justices of the high courts would begin by next week.
Ms Bhutto said contrary to the general impression the government had
always been consulting the chief justices and governors "in writing"
about the appointment of judges and that "all this is on record". She
said the executive had appointed acting chief justices to the high
courts only after receiving the chief justice's written consent and
added that the additional judges had been appointed after a similar
process of written consultation "and nowhere was it pointed out that
consultation should not be with acting chief justices."
Voicing a legal opinion on the question of the president's sole
authority of appointing judges, she argued that it was the inviolable
constitutional right of the president and read out Article 193 to prove
her point.
She went on to state that a quandary had arisen as to "what an executive
is to do when the apex court gives a judgment many believe to be
violative of the constitution." Having said that, she added that while
the judiciary could interpret the Constitution it had to submit to the
Constitution which had not given it the power "to write and attach a
mini constitution or strike down articles of the Constitution." She
asserted that her government" jealously guards not only the Constitution
but also the trichotomy of power which is the soul of the Constitution."
Ms Bhutto went on to question the court's finding on the issue of the
judicial recommendation being binding on a president/chief executive
unless the executive head "recorded" reasons for it being otherwise. She
said that this direction not only curbed the President's constitutional
right to appoint judges but opened the Prime Minister's advice to
scrutiny which in turn was prohibited by Article 48(4) of the
Constitution.
Taking on the Supreme Court verdict for what she portrayed as the
rewriting of the Constitution, the Prime Minister said that the court
order regarding the entitlement of the "senior most judge" to be the
chief justice of the High Court "adds words to Article 193" which only
talked of "a judge of the high court". Deliberately dropping her voice
for dramatic effect, Ms Bhutto commented that the principle of the
senior most judge's appointment as the chief justice of a high court was
"interestingly" not made applicable to the appointment of the chief
justice of the Supreme Court.
Making a rather direct attack on the chief justice himself, she said the
question also arose," whether proceedings of a court are vitiated when a
judge sits in his own case."
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960329
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Nawaz offers help in evolving procedure
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Bureau Report
ISLAMABAD, March 28: Leader of the opposition Mian Nawaz Sharif offered
full cooperation to the government for bringing about a constitutional
amendment for the "future process of nomination of judges to superior
judiciary."
He made the surprise offer in the House, while responding to an earlier
speech by the prime minister. Speaking extempore in reply to Ms Bhutto's
written discourse, the former prime minister took the political
initiative by offering his support to the government with the provision
of the government first convincing the opposition that it would be in
the national interest to do so. He said: "Once the government
implemented the verdict and then convinced us about the needed changes
for appointments in future we're willing to sit and unanimously pass the
needed changes to the Constitution."
But it was not a cooperation offer devoid of any accompanying criticism.
He said by refusing to shoulder its constitutional responsibilities the
government had relinquished its right to be and was, therefore, "an
unconstitutional government". He said the government's reaction was akin
to a revolt against judiciary and its attitude had "really threatened
the democratic structure of the country."
He claimed that the opposition had always offered cooperation on matters
of national importance but it had been the government that had always
spurned "our sincere offers". Nawaz Sharif then castigated the prime
minister for adopting a hostile and confrontational attitude towards the
superior judiciary. He said that till now the opposition had been hoping
that the prime minister would adopt a mature and responsible attitude
towards the judiciary but her discourse has shattered our faith and any
expectations that may have been left."
He went on: "She has just acted as a judge on the court's verdict and
seems to have assumed the role of the country's attorney general." He
warned that the government had no option but to submit to the court's
will under Article 180 of the Constitution.
He recalled that a few days back the prime minister had branded the
verdict as having come in an angry haste and asked: "Is five months
of hearing a haste and what anger is she talking about."
He went on to observe sharply that the chief justice had been appointed
by her own government therefore there could not even be a suggestion of
his being close "to us or harbouring any sympathy for the other side."
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960329
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President confirms three SC judges
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Nasir Malick
Islamabad, March 28: The President issued a notification appointing
three out of seven ad hoc judges of the Supreme Court as permanent
judges.
Those made permanent judges of the Supreme Court include additional
judge Justice Mukhtar Junejo, Justice Bashir Jehangiri and Justice Raja
Afrasiab Khan.
With the appointment of these judges, the strength of the permanent
judges in the Supreme Court has risen to 14. Two vacancies of permanent
judges are still vacant.
The appointments are understood to have been made by the President in
consultation with the Chief Justice Syed Sajjad Ali Shah. Except Justice
Mukhtar Junejo, the remaining two judges were withdrawn from the Supreme
Court bench on March 25 by the Chief Justice.
The remaining ad hoc judges who have not been confirmed are acting Judge
Mir Hazar Khan Khoso, Riaz Hussain Sheikh, Munir Khan and Mamoon Qazi.
But Prime Minister Benazir Bhutto today told the National Assembly that
10 out of 11 permanent judges (before the induction of three judges)
were hit by the Supreme Court short order which declared all
appointments of additional judges made in consultation with the acting
chief justices as invalid.
Similarly, she said, six high court judges would also be rendered
invalid if the short order was implemented in letter and spirit.
At least 17 judges of Lahore and Sindh high courts were affected by the
Supreme Court order besides seven judges of the Supreme Court.
The short order had said that an acting Chief Justice was not a
consultee as envisaged by the relevant articles of the constitution and,
therefore, mandatory constitutional requirement of consultation was not
fulfilled by consulting an acting Chief Justice.
The government had confirmed 17 high court judges a day before the
decision but the short order said: "That since consultation for the
appointment/confirmation of a judge of the superior court by the
president/executive with consultees mentioned in the relevant articles
of the constitution is mandatory, any appointment/confirmation made
without consulting any of the consultees as interpreted above would be
violative of the constitution and therefore, would be invalid."
Prime Minister Benazir Bhutto told the National Assembly that while the
names of judges whose appointment had been declared violative of the
constitution were already known to every one, there were at least 10
judges of the Supreme Court who according to the law laid down are
"violative of the constitution and therefore invalid."
She named the following 10 judges who were appointed as additional
judges to the high courts in consultation with the acting chief justices
of the high courts.
1. Justice Sajjad Ali Shah appointed on August 10, 1978 in consultation
with acting Chief Justice Agha Ali Haider.
2. Justice Ajmal Mian appointed on March 20, 1978 in consultation with
acting chief justice Agha Ali Haider.
3. Justice Saleem Akhtar appointed on October 10, 1980 in consultation
with Acting Chief Justice Abdul Hayee Kureshi.
4. Justice Fazal Ilahi Khan appointed on April 10, 1982 in consultation
with chief justice Mian Bashiruddin and given oath by Justice Syed Usman
Ali Shah.
5. Justice Zia Mahmood Mirza appointed on March 3, 1984 in consultation
with acting Chief Justice Javed Iqbal.
6. Justice Muhammad Ilyas appointed on June 3, 1978 in consultation with
acting chief Justice Mushtaq Hussain.
7. Justice Muhammad Munir Khan appointed on May 18, 1981 in consultation
with acting Chief Justice Shamim Hussain Qadri.
8. Justice Mir Hazar Khan Khoso appointed on March 31, 1985 by the
acting chief justice.
9. Justice Irshad Hasan Khan appointed on May 18, 1981 by acting Chief
Justice Shamim Hussain Qadri.
10. Justice Sheikh Riaz Ahmad appointed on March 9, 1984 by acting Chief
Justice Javed Iqbal.
The affected judges of Lahore High Court in case the Supreme Court
decision is implemented are:
1. Justice Irshad Hasan Khan appointed on May 18, 1981 in consultation
with acting Chief Justice Shamim Hussain Qadri.
2. Justice Khalilur Rehman appointed on May 18, 1981 in consultation
with acting Chief Justice Shamim Hussain Qadri.
3. Justice Ijaz Nisar appointed on July 16, 1983 in consultation with
acting Chief Justice Javed Iqbal.
4. Justice Sheikh Riaz Ahmad appointed on March 3, 1984 in consultation
with acting Chief Justice Javed Iqbal.
Benazir Bhutto said the following judges of the Balochistan High Court
would become invalid because of the short order.
1. Justice Munawar Ahmad Mirza, appointed on March 31, 1985 in
consultation with acting Chief Justice Abdul Qadeer Chaudhry.
2. Justice Amirul Mulk Mengal, appointed on March 26, 1986 in
consultation with acting Chief Justice Ajmal Mian.
Referring to the short order Bhutto said it was an order by the
judiciary against the judiciary where judges may face the unfortunate
risk of being dragged in to litigation. "We do not want to see majesty
and awe of the judiciary undermined by ridicule and crude behaviour
witnessed since the passing of the short order," she said.
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960330
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No constitutional crisis: SHC CJ
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Staff Reporter
KARACHI, March 29: The acting Chief Justice of the Sindh High Court,
Justice Abdul Hafeez Memon, said that there was no constitutional crisis
in the country and that matters were being worked out.
The Sindh High Court is working normally. There is a one-month period
for the implementation of the Supreme Court order. You have seen that
quite a few ad hoc judges have been regularised, Justice Memon told
reporters after a commemoration meeting for the late journalist Sardar
Ali Sabri.
He also said that he would have no objection to going back to the
Supreme Court if he was recalled through proper channels. If they ask
me Ill go back. But provided its through proper channels, he said.
Justice Memo clarified that proper channels meant a notification from
the law ministry.
Right now Im under oath as chief justice of the Sindh High Court. When
you are under oath you cant just get up and walk away. If a superseding
notification from the Law ministry comes only then can I go back to the
Supreme Court, he said.
Justice Memon criticised what he said was the inaccuracy in a recent
Press report about his recent trip to Islamabad.
I was not summoned by the Chief Justice of the Supreme Court but by the
law ministry to discuss building plans for the Larkana Circuit Bench
Complex. There were these totally false and baseless reports that I had
been issued a show-cause notice. All these stories are completely
without any basis, he said.
Justice Memon denied a reporters suggestion that he might be under
pressure. Not at all. I am under no pressure whatsoever, he said.
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960401
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Sajjad inducts three permanent judges
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Bureau Report
LAHORE, March 31: Chief Justice Sajjad Ali Shah administered oath to
three ad-hoc judges as permanent judges of the Supreme Court and
affirmed that this was in pursuance of the apex courts order of March
20.
Yes, it is implementation of the Supreme Court decision in the judges
case, he said in reply to reporters questions after the swearing-in
ceremony.
The entire nations efforts have borne fruit, remarked Justice Irshad
Hasan Khan, a Supreme Court permanent judge.
It is for the courts to interpret the Constitution and other laws,
Justice Sajjad Ali Shah told reporters when he was referred to Prime
Minister Benazir Bhuttos statement criticising the SC verdict as
violative of the Constitution in the National Assembly. Informed that
according to the PM, his own appointment had been hit by his verdict,
the chief justice said that the Supreme Court has interpreted the
relevant provisions and this is enough.
People have their own perception, he said when asked to comment on the
view that the Supreme Court has staged a judicial coup. So far judges
are concerned, they speak only through their judgements. While an
interpretation of the Constitution is a function exclusively assigned to
the superior judiciary, everyone is free to express his views on the
Constitution but let him do so in public.
Asked whether the affected judges should have suspended their work or
should not have been assigned cases after March 20, the CJ said it was a
matter for the high court chief justices to decide. The Supreme Court
was to decide the case in accordance with the Constitution and it now
for the people and authorities concerned to read and understand it and
to act on it.
With the swearing-in the three more permanent judges on Sunday, the
Supreme Court is still five short of its sanctioned strength of 16,
excluding the chief justice. It will rise to 13 on the return of Justice
Irshad and Justice Memon, leaving only three posts vacant.
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960401
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The legal eagles of the prime minister
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MOHAMMAD MALICK
ITS a long established parliamentary tradition for the treasury and the
opposition parties to hold their respective meetings immediately before
the opening sitting of a new session.
The ruling partys meeting on Sunday, March 24, was therefore expected
to be nothing more than the routine event with party back benchers
availing the rare opportunity of seeking the prime ministers elusive
ear. But it wasnt to be, much to the delight of a hawkish few and the
fright of the pragmatic many.
Making no efforts to conceal her annoyance with the latest Supreme Court
verdict, the prime minister was literally on a war path and it was only
a matter of minutes before the war bug bit everyone, starting with the
ever-ready sycophants whod gladly voice a pleasant opinion rather
than dare offering a right one to their political boss.
According to some of the shocked participants of the meeting, the prime
minister minced few words and really let the judges have it. To cut
the long story short, the prime minister let it be known that she wanted
her men to go into the assembly and blast away the ungrateful
judiciary.
Any doubts contrary to this impression were dispelled by the venomous
opening salvo fired by Nawabzada Ghazanfar Gull. Not that the meeting
didnt have its lonely exceptions. The lanky deputy speaker, Syed Zafar
Ali Shah, who has a formidable and an equally undesirable reputation of
uprighteousness, wanted the prime minister to explain this strategy of
confrontation and had barely uttered a couple of sentences to argue
against the prime ministers chosen option when a visibly agitated prime
minister waved him down.
While the intensity of the prime ministers reaction in the
parliamentary meeting may have surprised some, her impatience with
judiciary is nothing new for her party faithful.
Benazirs uneasiness with the judiciary is understandable, even if not
condonable. From holding it responsible for the judicial murder of her
father, the legalisation of Zias martial law, protracted incarceration
of her husband, having been made to shuttle between one court and
another... hers is a long list of complaints, and thus the entrenched
mistrust.
What does appear surprising, however, is that the prime minister seemed
to be genuinely shocked by the courts verdict. Any lawyer worth his
black robe can gauge a courts mood during the course of a trial and why
her legal team failed to anticipate the outcome, after a five-month long
trial, is simply incomprehensible.
Were her legal aces sleeping all the time? But then perhaps her legal
eagles had more important things to worry about than the Supreme Courts
stripping the executive of one of its most awesome powers.
The attorney general, Qazi Jameel, could be excused for being
preoccupied with other pressing chores mostly personal and family in
nature. Besides, as he himself confessed on the day of the cancelled
press conference of the chief justice, the government has yet to
solicit my advice on the matter of the appointment of judges.
Honestly speaking, no one can really blame the guy if the government
itself is in no mood to benefit from his expertise.
The law minister for his part has his own roster of priorities. To begin
with, N.D.Khan has already been directed to limit his ministerial duties
to only issuing political statements and to leave the legal matters to
his Harvard-returned son, employed by the government at a tidy monthly
salary of Rs 100,000. Then he must also have to spare time to lend a
helping hand to his wife, Shamim N.D.Khan, who happens to be adviser to
the Sindh chief minister on women development.
With such a busy flock to look after, the law minister deserves to be
excused for lapses in such trivialities as cases involving major
constitutional interpretations.
But all said and done and her brilliant team of legal experts
notwithstanding, one would have expected a chastened Benazir to emerge
from the long years of struggle as someone much more astute at
comprehending the mechanics of power particularly after being ousted out
of power once. If she has matured enough to realise that a political
party in Pakistan could never survive by maintaining a them and us
attitude towards the Khakis, as she did in her days of political
naiveti, it could prove an equally rough, if not fatal, course to clash
head on with the lands highest court.
She must realise that the conduct of adversaries in any conflict or an
act of dissension is invariably decided by who has more to lose and not
necessarily by who is in the right, and clearly the government has much
more at stake than a group of senior judges.
In fact, had it not been for her open defiance, a vigorous public on the
issue would not probably have taken place. If today senior legal experts
and former chief justices are openly voicing their critical opinions the
credit must go to the prime minister but the question remains, should
this have been a public debate in the first place.
The majority of our state institutions suffer from a serious credibility
crisis and when the government of the day takes on the apex court itself
and aspersions are cast on the integrity of the top judiciary, who would
then stem the erosion of one of the most vital organs of the state.
Even if the government wins in the short term by forcing out a few
concessions in its review petition, the long-term implications of this
ongoing tussle can only be negative.
Instead of the issue being presented as a principled stance between the
inviolable rights of parliament and the executive vis-a-vis those of the
judiciary, the mishandling by her legal aides has turned the whole
affair into a seemingly personal tiff between the prime minister and the
chief justice.
Nothing could be more unfortunate, unless of course one was Nawaz
Sharif. Drawing maximum treasury blood during this entire episode, the
leader of the opposition seems to have come of age in the last few days.
In particular his extremely articulate response to the prime ministers
belligerent parliament speech gives the hint of his quiet and gradual
transformation into a statesman.
Ironically, the prime minister must take credit for perpetually
contributing to the growing stature of her arch rival. It were her
apolitical approach towards Nawaz in 1988 that helped him change into a
serious politician from being a mere protigi of a military regime. Once
again, she is helping him establish his statesman credentials by
default, by allowing him opportunities to capitalise on her mistakes.
Seizing the moment he even offered the possibility of a unanimous
constitutional amendment on the issue of the appointment of the judges
but it remains to be seen whether the prime minister would continue
viewing the matter in purely legal terms or judge it on a political
touchstone, as she must.
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960402
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A new method of protest
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Mohammad Malick
ISLAMABAD, April 1: An infuriated opposition adopted a new method of
showing its resentment when it refused to leave the House in protest
against the abrupt adjournment of the session.
The opposition was agitating against what it dubbed the bailing out of
the government by Speaker Yousaf Raza Gillani who had adjourned the
House rather hurriedly.
The oppositions ire was understandable as the government had been in a
somewhat embarrassing position at the time. There was confusion in
treasury ranks on what strategy to adopt in the face of a charging
Khwaja Asif who, giving an intelligent twist to an earlier remark by the
education minister, wanted the House to immediately adopt a motion
condemning all martial law administrators, including the first civilian
martial law administrator.
With the opposition willing to condemn both Ayub Khan and Gen Zia-ul-
Haq, whose sons are sitting members of PML and were present in the
House, the ruling part members were faced with the dilemma of either
condemning Zulfiqar Ali Bhuttos role as the countrys first civilian
martial law administrator or be branded as being pro-autocracy and anti-
democracy.
It was in such trying moments that the speaker cut off Khwaja Asifs
microphone, much to the chagrin of the opposition and the relief of the
treasury, and adjourned the House till April 7.
A visibly furious leader of the opposition directed his members to stay
put in their places while the treasury members slowly slipped out.
Initially, tempers were running so high that the opposition almost went
ahead with the proposal of nominating one of their own members as the
acting speaker and even two chairs of the speakers staff were placed in
front of the dais facing the House.
A few minutes later, it boiled down to a highly agitated opposition, an
equally amused press corps and an empty House resounding to the loud and
fiery discourse of Rao Qaiser. The opposition finally called it a day
after holding an almost 20- minute-long mini-session of its own.
The incident had been sired by an earlier speech of Ijazul Haq and the
subsequent reactions by Federal Ministers Raza Rabbani and Khurshid Ali
Shah. Making an amendment to amendment analysis of the original seven
amendments to the 1973 Constitution, all incorporated during Zulfiqar
Ali Bhuttos government, he argued that it was the PPP itself which had
always tried to curtail the powers of the judiciary.
He said in the third amendment of Feb. 3, 1975, while imposing the
emergency, the government had given unlimited powers to the executive.
Similarly he pointed out that in the 4th amendment of Nov. 21,1975, the
High Courts were stripped of their powers to grant bail to a person in
police custody while all constitutional changes brought about by the
remaining amendments were aimed at taming the judiciary.
He said the government was bent upon ridiculing the Supreme Court
verdict in the same manner as it had humiliated the orders of the
Speaker and the Senate Chairman, pertaining to the production of jailed
parliamentarians. He then went on to make a detailed criticism of what
he described as the PPPs anti- judiciary track record. And it was this
tirade that spawned the whole episode.
The first angry response came from Minister of State for Law Raza
Rabbani, who blasted Ijazul Haq for having the audacity of speaking
for judiciary while his own father had indulged in the worst form of
persecution of the masses, manipulation of the judiciary and had even
dismissed the Constitution as a mere 12- page worthless document.
Terming it irony of history and a paradox he castigated the
inheritor of Zias legacy for daring to speak for the cause of the
judiciarys independence. He then presented a passionate defence of the
governments position on the Supreme Court verdict.
At this point, Mahmood Achakzai questioned Raza Rabbanis logic of
judging a son by the actions of his father and argued that the fact
that two sons of former dictators were today speaking up for democracy
should be viewed as a victory for the democratic values in the
country, instead of making attempts to rob them of this inherent right.
Upon hearing this viewpoint, Education Minister Khurshid Shah, stood up
at once and made a shrewd political move in an attempt to put Ijazul Haq
in a tight spot. And he had almost succeeded too but for the brilliant
counter move by Khwaja Asif.
Feigning full agreement with Mr Achakzais logic, Syed Khurshid Shah
said the ruling party would never again question the democratic
credentials of Ijazul Haq if he would only stand up in the House right
now and condemn the eleven-year dictatorial rule of his father and the
actions taken during that period. It was clear that for a little while
the opposition was caught on a weak wicket as it tried to cover up the
issue by creating a rumpus and resorted to hurling incoherent
accusations.
But then the tables were suddenly turned on the treasury by Khwaja Asif
who stood up and offered to go a step beyond what the minister had
asked for and said that the opposition would condemn all autocrats, let
alone Zia.
His voice getting louder by the second, Khwaja Asif went on to insist
that the National Assembly must stand up in the name of democracy and
eschewing political affiliations demonstrate its commitment to democracy
by condemning en bloc all martial law administrators, including the
first civilian martial law administrator.
Sensing the restlessness of the treasury benches, the opposition greeted
the proposal by shouting dares at the treasury while both Khurshid Shah
and Raza Rabbani realising their predicament opted to stay silent.
Within minutes it was an opposition on the charge while the treasury was
clearly caught in a bind. With Khwaja Asif starting to read out a
damning resolution almost immediately and the cheering opposition
turning the proceedings into a victory celebration, the speaker dropped
the axe on the opposition by suddenly announcing an adjournment.
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960401
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Mobile phone firms told to submit lists of subscribers
-------------------------------------------------------------------
Staff Reporter
KARACHI, March 31: The communications ministry has asked the three
cellular phone companies Mobilink, Paktel and Instaphone to furnish
complete lists of their subscribers if they want to get their operation
restored in the city.
Sources said the mobile phone companies would resume their operation
within the next three weeks, but the ban on paycard and digital services
would continue.
Earlier, these companies were reluctant to provide bio-data of
subscribers to the government as these phone had been misused by
terrorists. They were of the view that by accepting the governments
demand they would be betraying the confidence of their subscribers and
also infringing upon their right to privacy.
In February 1995, the government had shut down the service of the
Mobilink and its subscribers in the city were left in quandary.
After four months, the city-wide operation of three cellular companies,
three phone card services Tele Card, Phono Card and Telips and
Digital Communications known as Pager had been snapped on July 1, 1995,
in order to arrest the deteriorating law and order situation in the
city.
The sudden suspension of services caused a huge loss to the business
community, politicians and residents of posh localities who were
frequent users of these services.
The government was of the view that the ban on these services had helped
law enforcers in locating the hide-outs of the terrorists.
The Digital Communication (Pager service) has sent letters to their
subscribers in which certain information has been sought, such as
whether the subscribers pay income-tax or not.
Moreover, subscribers have been asked to give two references to be sent
to the DC service. The sources said the government had also given its
approval to the DC service to resume its functioning after fulfilling
the necessary requirements.
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960329
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Islamabad rebuts Delhi's charge of meddling
-------------------------------------------------------------------
Hasan Akhtar
ISLAMABAD, March 28: Foreign office refuted Indian Prime Minister
Narasimah Rao's charge against Pakistan of interference in the occupied
Jammu and Kashmir and demanded that instead of enacting a farce of
elections, the Indian government should positively respond to Pakistan's
repeated call to hold meaningful talks on the core problem of holding a
plebiscite to let the Kashmiris determine their own future.
Any Indian-managed elections could not be a substitute for plebiscite as
envisaged in the United Nations resolutions, a Foreign office spokesman
said here today.
The elections had been rejected by the people of the disputed state
since 1989 when only two percent of the electorate allegedly took part
in polls, the spokesman added. He pointed out that the All Party
Hurriyat Conference (APHC) had already rejected the projected elections.
The spokesman asserted that Mr Rao's latest claim on March 24 of alleged
interference by Pakistan, was merely another attempt on his part to
divert world opinion from the atrocities being committed in the occupied
state.
Answering questions at his weekly news briefing, the spokesman indicated
that the Pakistan government would go ahead to help Afghan factional
authority to rebuild the road connecting Turkmenistan through Afghan
territory to Pakistan. He said the decision had been taken by the
Pakistan authorities collectively at the highest level and speculations
of differences among different ministries were a false perception or
analysis. He was asked by a reporter whether postponement of a visit by
Gen Naseerullah Babar to Afghanistan was because of the restraining
influence of the foreign ministry?
The spokesman justified Pakistan's decision to assist in road building
in Afghanistan in the face of strong objections by President Rabbani in
Kabul, saying that the project had already been agreed upon by Pakistan,
Afghanistan and Turkmenistan who had also specified funds for the work.
He further claimed that the road was being laid in an area which the
Kabul administration did not control.
PAKISTANI EQUIPMENT: The spokesman said a programme management review
between the defence officials of the United States and Pakistan would
begin in the US from April 1 to discuss the status and collate the
figures of the equipment which Pakistan sought and work out a delivery
schedule.
To another question about the reported visit to Lahore by a group of
former Indian military officers including a veteran of the last three
wars against Pakistan, the spokesman replied he was sorry he did not
have any information just now on this.
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960329
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Missions asked to take up Andrabi's murder issue
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Hasan Akhtar
ISLAMABAD, March 28: Pakistan has instructed all its missions abroad,
including the one in the United Nations, to raise with the authorities
and governments to which they were accredited, the recent assassination
of a Kashmiri human rights monitor and political dissident in the held
Kashmir.
The Kashmiri leader and human rights activist, Jamil Indrabi, was
reportedly seized by the Indian forces in the valley earlier this month
and was tortured and killed by his captors.
His body was found in the river Jehlum the other day. It sparked off a
spate of protests and resentment by Kashmiris campaigning for their
freedom from the Indian occupation.
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960331
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JKLF chief Shabbir, 29 others slain in Valley
-------------------------------------------------------------------
NEW DELHI, March 30: Jammu and Kashmir Liberation Front President
Shabbir Ahmad Siddiqui and 29 other Kashmiris were killed when Indian
troops blasted a house with mortars on the outskirts of Srinagar.
The Indian troops had cordoned a house close to the Hazratbal shrine
where these slain Kashmiris were staying and fired mortar shells
blasting the house, killing 30 people.
Thirty bodies, including that of Shabbir Ahmad Siddiqui, have been
retrieved from the debris. The JKLF sources said the house was blasted
by troops with mortars without giving any chance to the inmates to come
out.
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960401
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Nawaz not to launch parallel policy
-------------------------------------------------------------------
Staff Correspondent
ISLAMABAD, March 31: President PML and leader of the opposition Mian
Nawaz Sharif has said that the opposition, in spite of all its
differences with the government, cannot launch a parallel foreign
policy.
The PML, therefore, has abstained from separately contacting world
community on the issue of Kashmir, however, if the government continued
to fail in providing proper protection to the Kashmiris, we would be
rightly forced to launch a save Kashmir movement inside the country as
well build up international contacts for this purpose, he observed.
Nawaz Sharif strongly condemned the siege by Indian forces of the
Hazratbal shrine in Srinagar followed by the murder of human rights
activist Jalil Andrabi and the massacre on Saturday.
He said the recent incidents posed the question for Pakistanis as to
what had made India more reckless in the unbridled killings of Muslims
in the occupied Kashmir.
He wondered whether the diplomatic isolation of Pakistan and the
unobstructed massacres of Muslims by India were the desire results of
the prime ministers incessant foreign tours.
The leader of the opposition said: India was repeating in Kashmir the
policy that it earlier pursued in Punjab.
Is it not strange that whenever Benazir Bhutto comes to power in
Pakistan, India starts acting like a bully in the region and gets a free
hand to eliminate all freedom fighters, he alleged.
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960401
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PM warns of tragic outcome of Indian N-test
-------------------------------------------------------------------
ISLAMABAD, March: Prime Minister Benazir Bhutto warned that the Indian
second nuclear test would have tragic consequences for the subcontinent.
Ms Bhutto said, in recent months, our diplomatic efforts have focused
on making the international community realise the implications of the
Indian nuclear programme and its highly ambitious projects for the
production and deployment of nuclear-capable missiles.
She said though there is some indication that the world is beginning to
see through the Indian smokescreen of sanctimonious statements, this is
still not enough to make an adequate impression on India. The
possibility of a second nuclear test remains which would have tragic
consequences for the subcontinent.
The prime minister, referring to the Kashmir dispute, described it as
the worst example of Indian intransigence which bedevils bilateral
relations between the two countries.
Thousands of Kashmiris have lost their lives, villages burnt, women
dishonoured and the entire valley subjected to extreme economic
hardship. Responding to growing international condemnation, India now
plans to hold a sham election, she added.
It has organised a gang of criminals which terrorises the Kashmiri
people, including their representatives in All Party Hurriyet
Conference. The latest victims were Shaheed Andrabi, Shabbir Ahmed and
20 others killed on Saturday when Indians blasted a house near Hazratbal
where they had taken refuge.
Ms Bhutto said, by trying to destroy the All Party Hurriyet Conference,
the Government of India is, in fact, destroying the chances of shifting
the matrix from violence to peaceful negotiations. Its readiness to hold
a dialogue with a few puppets is a ploy to detract world attention. It
has never worked in the past. It will not work in the case of Kashmir.
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960401
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Altaf flays killing of activists
-------------------------------------------------------------------
Staff Correspondent
LONDON, March 31: The killing of four members of the Mohajir Qaumi
Movement during the last 48 hours has been condemned by Mr Altaf Hussain
who held the Rangers and the police responsible for their deaths. The
MQM leader said that they were killed in fake encounters. He added that
while the Indian security forces were engaged in brutal killings of
Kashmiris, the Rangers instead of facing the enemy were killing unarmed
Mohajirs in their own country.
Mr Hussain said that continuing killings of MQM workers have increased
pressure on him from party activists to endorse a call for a week-long
strike. The MQM will, in the light of the opinion expressed by party
workers, decide on the future course of action in due course.
He said that fake encounters in which Mohajirs were being killed have
the full backing of the government.
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960404
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MQM alleges govt sponsored attack on 90
-------------------------------------------------------------------
Staff Reporter
KARACHI, April 3: The MQM coordination committee accused a government-
supported armed group of attacking the residence of Altaf Hussain and
the MQM headquarters and threatening to kill coordination committee
members if the strike was continued on Thursday.
He said if any harm came to the MQM coordination committee members,
Prime Minister Benazir Bhutto, Interior Minister Naseerullah Babar,
Sindh Governor Kamal Azfar, Chief Minister Syed Abdullah Shah, IGP of
Sindh and DIG of Karachi would be held responsible.
President Farooq Ahmad Khan Leghari, Chief of the Army Staff, Chief
Justice of the Supreme Court, and Chief Justice of the Sindh High Court
have been informed about the incident through telegrams, he said.
The Deputy Opposition leader in the Sindh Assembly, Shoaib Bokhari, who
was also present, told newsmen that an FIR was being lodged with the
SHO, Azizabad, on behalf of Altaf Hussain because primarily his house
was attacked.
Replying to a question, he said the possibility of another strike in
response to the attack on Altaf Hussains residence would be examined
but indicated that the response may be diluted because Altaf Hussain
never reacts strongly as far as his personal matters were concerned.
The coordination committee convenor alleged that over 150 armed men,
protected by rangers, police and CIA officials, attacked the residence
of Altaf Hussain, MQM headquarters 90, MPA hostel and threatened to
kill coordination committee members.
He said that the terrorists, led by Zafar Jhandeer, a puppet of the
PPP, ransacked the counter at 90, tore of pictures of Altaf Hussains
dead brother and nephew and held elders present on the occasion
hostage.
Sen Azhar also gave numbers of some of the police mobiles which, he
said, were escorting the armed men. He contended that when the alleged
attack on 90 took place rangers and police had cordoned off parts of
Azizabad to provide protection to the armed men.
After escorting the terrorists to their sanctuaries, rangers and police
again surrounded 90 around 2.30 pm, said the coordination committee
convenor.
He held the PPP government, particularly Interior Minister Naseerullah
Babar, Sindh Chief Minister Syed Abdullah Shah, responsible for
providing protection to the armed attackers whom the government had sent
to achieve its objectives.
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960402
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PM accepts oppositions offer of cooperation
-------------------------------------------------------------------
Nasir Malick
ISLAMABAD, April 1: Prime Minister Benazir Bhutto has accepted
opposition leader Mian Nawaz Sharifs offer of talks by making the
Supreme Court decision a basis for the dialogue and asked him to fix a
mutually convenient date for this purpose.
The acceptance, apparently aimed at creating a working relationship with
the opposition was conveyed to Mian Nawaz through a letter by the Prime
Minister.
Several such offers had been made by the two sides in the past but no
meeting has been held so far. The two parties accuse each other of
backing out of their offers. But political analysts said unlike in the
past, the prime minister apparently has written a very short and
straight letter to avoid any controversy. It will be very difficult for
the opposition to refuse this offer, one of them said.
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960404
-------------------------------------------------------------------
Nawaz sets terms for response to PM offers
-------------------------------------------------------------------
Bureau Report
LAHORE, April 3: Opposition leader Mian Nawaz Sharif said he would not
respond to any offer of Prime Minister Benazir Bhutto until she
implemented the Supreme Court verdict.
He claimed that during his tenure judiciary was more independent than it
was now. He also expressed concern over what he termed gross
irregularities in the preparation of electoral rolls and said if these
were not rectified, his party would give a second thought about
participating in the next general elections.
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960402
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PML alleges bogus entries in voters lists
-------------------------------------------------------------------
ISLAMABAD, April 1: Contrary to complaints from only eight out of 207
constituencies, the PML leadership alleged that the new electoral rolls
prepared by the Election Commission carried many bogus entries and they
termed it a pre-election rigging.
The central secretariat of the party has received written complaints of
bogus entries only from eight constituencies of the National Assembly
out of total 207 constituencies of the country.
Citing the written complaints, they demanded that Election Commission
should probe into them, and ensure that the entire process is conducted
fairly and impartially.
He said his party would not take part in the elections, if these were
conducted under the new electoral rolls.
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960329
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LHC stays proceedings against Imran
-------------------------------------------------------------------
Bureau Report
LAHORE, March 28: The Lahore High Court has restrained another district
magistrate from proceeding against Imran Khan in the absence of a
notification issued by the provincial government under the Charitable
Fund (Regulation of Collections) Act, 1953.
A full bench of the LHC had directed district magistrates all over the
province in April 1995 to scrutinise the collections made by Imran Khan
for the Shaukat Khanum Memorial Hospital under Section 6 of the 1953 Act
in their capacity as sanctioning authorities. Imran Khan was also asked
to furnish the hospital's accounts to the sanctioning authorities.
The order came on a writ petition filed by Advocate Dr Abdul Basit, who
said the 1953 Act bars collection of donations by any individual or
organisation except in accordance with its provisions.
The law empowered the provincial government to designate officials for
sanctioning and regulating the collection of donations under the law and
the government had appointed the district magistrates as sanctioning
authorities for their respective districts by a notification issued in
1968.
In November 1995, Dr Basit moved an application seeking enforcement of
the April order.
In the meanwhile, Advocate Mansoor Ali Shah filed an application on
Imran Khan's behalf that no sanctioning authority had been named by the
provincial government under the law. The petitioner and the provincial
home department failed to produce the 1968 notification and the court
stayed proceedings by the district magistrate of Lahore under its
previous order.
In his latest order, Justice A. Shaikh issued notice to the district
magistrate of Multan for April 8 and stayed any proceedings by him in
respect of the donations collected by Imran Khan till that date.
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960403
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Imran Khan to enter politics this month
-------------------------------------------------------------------
Masood Haider
NEW YORK, April 2: Cricket superstar Imran Khan will announce his entry
into the political arena of Pakistan in Lahore, on April 21, the birth
anniversary of Allama Iqbal, a highly informed sources close to Mr Khan
told Dawn.
The source said the ex-captain of Pakistan cricket team, has been pushed
and cajoled into entering the foray by his well-wishers and Pakistanis
abroad, who are willing to fund his campaign, to end the rampant
lawlessness and corruption in the country.
Mr Khan, who was in Dubai last week meeting Pakistani businessmen to
test the waters for funding his political movement, has been given
assurances of financial support by wealthy Pakistanis living in the
United States.
In an interview with the New York Times, Imran Khan indicated that he
would form his own political party on a platform promising a crackdown
on corruption. He feels that the United States is perhaps backing the
wrong horse in the hope that it would hold off Muslim fundamentalism
in Pakistan. He believes that Pakistani peoples concern about
lawlessness and corruption is at the core of the so-called Islamic
fundamentalist movement in Pakistan.
Most Pakistanis here feel that neither Ms Bhutto or her main rival Mian
Nawaz Sharif, are capable of ending the scourge of corruption.
The foreign media in Washington and New York has caught on to Mr Khans
ambitions and their interest in him and his wife Jemima has grown.
Several Pakistani correspondents in the United States have been
approached by the American media seeking to develop connections to
interview the couple.
When pointed out that perhaps the extraordinary interest shown in Imran
Khan could be due to Ms Jemimas family connections, most here dismiss
it, saying We know Imran Khan can deliver. He can strive to wipe out
corruption and lawlessness which continues to undermine the integrity of
the country.
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960404
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KESC likely to be privatised by year-end
-------------------------------------------------------------------
Staff Reporter
KARACHI, April 3: The KESC is expected to be privatised by the end of
this year, said the Federal Secretary, Ministry of Water and Power,
while briefing the Senate Standing Committee on Water and Power.
The committee was informed that the possibility of privatising
generation and distribution of the KESC separately was under
consideration of the government.
A financial advisory committee had already been appointed which was
expected to prepare a report about the KESCs liabilities and assets
within three months, he said.
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960404
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Strike affects life in Karachi areas & continues
-------------------------------------------------------------------
Staff Reporter
KARACHI, April 3: An MQM strike to protest the extra-judicial killing of
its workers disrupted normal life in many parts of the. It was not
observed in areas dominated by other ethnic groups or PPP and Haqiqi
supporters.
As a whole the city remained peaceful except for some stray incidents of
shooting. All the major markets and shopping centres, the Karachi Stock
Exchange and commodity markets remained shut on the first day of the
two-day strike.
Public and private transport was thin. Shops and neighbourhood markets
did normal business in Defence, Clifton, Liyari, Kharadhar, Shah Faisal
Colony, Lines Area, Saeedabad, Shershah and parts of Landhi, Korangi and
Malir.
The MQM coordination committee has decided to continue its strike on
Thursday following provocations allegedly by pro-government elements and
failure of the administration to meet any of the MQM demands.
===================================================================
960331
-------------------------------------------------------------------
Forex reserves plunge to two-year low
-------------------------------------------------------------------
Parvaiz Ishfaq Rana
KARACHI, March 30: Foreign exchange reserves plunged to two-year low at
$810 million, barely enough to foot the import bill for less than three
weeks.
According to figures released by the State Bank of Pakistan (March 26,
1996) the total forex reserves fell to $810 million (Rs 27.990 billion)
from the previous weeks $886 million (Rs 30.597 billion), showing a
fresh decline of Rs 2.607 billion.
The figure stood at $2.06 billion (Rs 71 billion) during the
corresponding period of last year and has steadily declined since then
to $810 million (Rs 27.900 billion), showing a fall of $1.190 billion
(Rs 43 billion).
The countrys trade deficit swelled to all time high at $2.37 billion
during the first 8 months of the current fiscal year as against $1.37
billion gap recorded during the corresponding period of the last fiscal
year (July 1995 to February 1996) and is the major factor for dwindling
forex reserves.
It becomes more alarming that even after successive devaluation of the
rupee to the tune of 11 percent within a short span of three to four
months, the countrys export instead of picking up correspondingly
witnessed a nominal growth of 2.20 percent at $5.05 billion during the
first eight months of the current fiscal year over $4.96 billion earned
during the same period of 1994-95, financial analysts said.
Against this the countrys import bill swelled by around 18 percent at
$7.42 billion during July 1995 to February 1996 period, as against $6.30
billion imports during the same period of 1994-95.
The present government inherited forex reserves totalling only $300
million when it came into power in November 1993 and progressively build
up to $3.2 billion until June 1995, they added.
Official sources said the forex reserves were stable around $2.72
billion for the last about 16 months although the state of the economy
was not in a good shape owing to the failure of major cash crops
including cotton.
Looking at the emerging scenario the country might achieve any figure
on the export front but the bulging import bill if goes unchecked will
not allow its impact to be felt because the trade deficit will widen
further, analysts said.
At this stage even the recent standby credit of $800 million extended by
the International Monetary Fund (IMF) to balance the trade deficit would
be of no help.
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960404
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Borrowings fall to Rs 65.9bn
-------------------------------------------------------------------
M. Ziauddin
ISLAMABAD, April 3: Bank borrowing for budgetary support has moved down
rather imperceptibly to Rs 65.9 billion from Rs 67.1 billion reported in
the previous fortnight, still leaving as much as Rs 33.9 billion to be
recouped for meeting the IMF bank borrowing target of Rs 32 billion for
the first three quarters of the current financial year.
However, in the remaining three months of the year ending June 30, the
government has to recoup a total of Rs 37.8 billion to meet the
budgetary bank borrowing target of Rs 28.1 billion enabling it to keep
the overall fiscal deficit for current year at 4.6 percent of the GDP
and qualify for the next tranche from the 600 million dollar.
Though the IMF has already released about half of the standby
arrangement of nearly 300 million dollars on the basis of the
performance of the economy in the first nine months, the IMF mission
arriving here next month would take a second look at the results of
the promised actions taken by the government to keep the bank
borrowing within the prescribed limits.
The monetary and credit development for the fortnight ending 14 March
which formed the basis of March 28, IMF-Pakistan talks in Washington
indicate that domestic liquidity decreased.
Government borrowings for budgetary support which had declined by Rs 4.1
billion during the preceding fortnight declined further by Rs 1.1
billion during the fortnight under review.
Government borrowings for commodity operations declined by Rs 3.2
billion but the decline was, however, considerably lower than the
retirement of Rs 8.9 billion in the corresponding period last year.
Credit to the private sector, which had marginally expanded by Rs 0.2
billion during the preceding fortnight, showed a contraction of Rs 2.4
billion to Rs 52.5 billion.
So far private sector credit expansion has been contained within the
target of Rs 64 billion envisaged in the credit plan for 1995-96.
Domestic credit expanded by 17.57 percent during the year against 7.84
percent recorded in the corresponding period last year; the higher rate
of credit expansion in the current year reflected mainly the higher
level of government borrowings.
Further decline of net foreign assets of the banking system led to a
decline in monetary expansion. Money supply during the fortnight under
review recorded a growth rate of 9.84 percent which was lower by 1.64
percentage point against what was recorded in the corresponding period
last year.
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960330
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Power projects sponsors want govt to arrange soft loans
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M. Ziauddin
ISLAMABAD, March 29: Sponsors of some of the private power projects have
asked the government to obtain commercial loans on their behalf, but
charge from them concessional rates as is being done in the case of
loans advanced to such companies from the Private Sector Energy
Development Fund (PSEDF).
Credit from the PSEDF to the private sector power sponsors carries
highly concessional rate of interest of 0.5 percent and commitment fee
of 3/4 of one percent with a repayment period of 23 years, including
eight years of grace period.
Almost all of the funds available with the PSEDF-1 and PSEDF-11
amounting to 625.45 million out of grand total of $758.87 million have
been advanced to the Hub power project while the remaining have been
lent to four other private projects.
Uch-1 has already obtained $10 million from PSEDF while Rousch has
obtained $75 million and Star Energy $47 million.
And now some of them are seeking funds from other sources apart from
PSEDF. Some power companies like the Uch and SAI have approached the
government of Pakistan to negotiate loans for them as their financiers
would like to deal with the government rather than the private sponsors.
The sponsors want these funds, $80 million from Bank of China and $90
million from US Ex-Im Bank for Uch and $90 million from European Bank
for SAI power project to be channelled through PSEDF.
However, these funds carry terms which are highly commercial. The
repayment period for US Ex-Im Bank is 12 years with an interest rate of
7.13 percent, commitment fee of one half of one percent and
management/exposure fee of 8.29 percent. The Bank of China carries
repayment period of 10 years from effectiveness, 7.35 interest rate, 0.3
to 0.25 percent commitment fee and 0.3 percent of finance amount as
management/exposure fee. The European Investment Bank carries a
repayment period of 8-12 years, interest rate of 6.18 percent for eight
years and 6.36 percent for 12 years and project monitoring fee 100 basis
points.
According to the proposal of the private sector sponsors, these funds
would be obtained by them for different tenors and interest rates but
would be repaid accordingly by the NDFC. And the NDFC would recover
these from the sponsors in accordance with the PSEDF terms.
In effect, the sponsors want the GOP to borrow short and lend long
putting the entire burden of these commercial loans on the Pakistani
taxpayers.
The highly attractive policy framework and package of incentives for
private sector power generation projects announced in March 1994 had
made it very clear that the sponsors would bring their own resources and
the government of Pakistan would in no case even stand guarantee to
loans raised from sources other than PSEDF.
The implication was obvious. If the government of Pakistan had had the
required financial space it would have added the needed generation
capacity on its own rather than offering incentives to the private
sector to do the job.
Therefore, saner official advisors have asked the government not to
succumb to undue pressure from any quarter in this respect and suggested
that financing for power projects through sources other than PSEDF, if
at all it is decided to obtain them on behalf of the private sector
sponsors, be lent to the projects, recovered and repaid on the same
terms as offered by these sources.
Still, others have very wisely asked the government to have nothing to
do with these loans and not to even stand guarantee to these highly
risky credits.
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960330
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The privatisation of UBL
-------------------------------------------------------------------
Mumtaz Pasha
FINALLY after a protracted process, the successful bidder for the
privatisation of UBL has been announced. As part of the privatisation
programme the sale of UBL represents a significant milestone and an
important yardstick for judging the transparency process. This
transaction, therefore, serves as a benchmark for understanding the
rationale behind the decision to privatise and the process adopted by
the Privatisation Commission in approving the various bids.
At the outset it must be emphasised that without relevant financial data
a cognitive framework cannot be developed by the writer of this article
to judge the price of Rs. 15.19 per share accepted by the Commission.
Therefore, it is difficult to determine whether the Bank was under-or
over-valued.
The backdrop to the privatisation was provided by the poor performance
of the UBL. The nationalisation had adversely impacted the profitability
and the liquidity of the Bank. Although the Bank has an extensive
network of branches in Pakistan and lucrative foreign operations, these
assets were wasted.
A number of factors may be attributed to the dismal performance of the
UBL-nationalisation. Some of these are summarised below:
* substantial loans escaping proper credit appraisal process which
inevitably turned into non-performing assets requiring substantial
provisions;
* poor management in the post nationalisation period with the Bank not
being able to retain most of its competitive advantages;
* a competitive banking environment following financial deregulation,
including disintermediation, which found UBL stranded as it was not
prepared to meet the new challenges; and
The factors highlighted provided an understanding of the background to
UBLs current net worth and its operating performance and will assist in
gauging the other options that merit consideration. These factors can be
attributed to various events including political intervention which
progressively increased over the years adversely affecting the policies
and operations.
The Bank, therefore, presented a nightmarish problem to the government.
The IMF have also been strongly recommending remedial measures including
privatisation. It is not known what reasonable solutions were initially
proposed by the government to the IMF. But it would be useful to review
the options available notwithstanding the threat of looming
privatisation, which I am afraid appears to be the current flavour of
the decision makers.
Underlying assumptions
>From what has been reported in the press the mindset of the Commission
appears to have been influenced by the following:
* a favourable price for the Bank on an as-it-is basis;
* injection of substantial funds in the shape of deposits. A figure of
approximately US$ 300 million has been mentioned;
* a first class management in place which will turnaround the poor
performance;
* the strategic management to be handed over to a reputable group that
will enhance the image and induct professionalism
However, what requires attention is whether the chosen path assures
success and if so at what cost. The critical issues related to the above
are discussed below:
Price: In the absence of relevant information it is not possible to
judge the agreed price of Rs. 15.19 per share at which the strategic
investor is acquiring the 26 percent shareholding in UBL. On the
surface, however, this price appears to be low when compared to the
prices agreed at the time of privatising Muslim Commercial Bank and
Allied Bank. These were privatised at Rs. 56 and about Rs. 78 per share
respectively.
The foreign operations of UBL are considered to be very profitable.
Also, immense value can be placed on the licenses available to the Bank
in foreign locations. These operations are no doubt the crown jewels and
must have featured in the valuation of the net assets and the earnings
potential.
Foreign currency deposits: The level of foreign currency deposits in
Pakistan is high. In fact financial institutions in Pakistan have been
facing problems in maintaining their capital base which is measured for
adequacy after considering, inter alia, the deposits.
It is not clear whether the transfer of funds to UBL is required to
improve the liquidity or will enhance the profits by cashing on good
lending and investment opportunities.
Buyers profile: Not much information has been given about the
Basharahil Group. This is indeed very surprising as in deals of such
sensitivity it is essential that the credentials are suitably disclosed.
The Commission has been claiming that it has adopted very stringent
standards for ensuring transparent deals and has put an end to the
malpractice noted in the past. However, certain fundamental questions
remain unanswered some of which are discussed below:
* A categorical announcement on the professional background and
expertise of the Basharahil Group has not been made, a critical factor
in the evaluation of the prospective bidder.
* Details of the management that the strategic investor is likely to put
in place. Again, one assumes that the Commission has vetted the
background and professional experience of the individuals comprising the
proposed senior management.
* The professional credentials of the advisors to the strategic
investor. Again, a very important yardstick used for assessing the
credentials of prospective buyers.
* The relationship of the prospective buyer with the regulatory
authorities is another important consideration in determining the
credentials. It is not known in which countries the Basharahil Group
operates in addition to its home territory. Also, in Saudi Arabia the
strategic investors reputation as a financial entity has not been
disclosed by the Commission. If this Groups does not have any banking
experience it would be interesting to note whether the monetary
authorities in its home country would grant it a banking license.
The above are some of the important matters on which sufficient
information is not available to the Pakistani public. There is no reason
to believe that any of the above can be treated as classified and cannot
be revealed for the sale of a public sector entity. The Commission could
have discussed various aspects of such matters without compromising on
confidentiality.
The Middle East connection
It is necessary to establish whether UBL can be entrusted to
institutions having Middle East connections. In the recent past because
of the collapse of BCCI regulators worldwide have been wary of Pakistani
financial institutions having linkages with Middle Eastern investors.
Even Middle Eastern banks operating overseas are monitored quite
closely, notwithstanding ownership by strong local business houses.
Therefore, the lucrative foreign operations may be at stake as the
overseas regulators will have the right to review the operations and the
future set-up of UBL following privatisation. The ownership and control
of the Bank by the Government of Pakistan provide strong credentials in
the eyes of overseas regulators so long their regulations are not
breached and the interest of the deposit holders in respective countries
are protected. Furthermore, there is also an element of reciprocity for
state-owned banks to operate in foreign jurisdictions.
All these might change with the privatisation of UBL where a Middle
Eastern operator manages the Bank. One could only hope that this matter
has been taken into consideration by the Commission. Already, as has
been reported in the Press, the Bank of England has sought information
on the Basharahil Group and is understood to have reserved its right to
review UBLs licence in the UK, post-privatisation.
Conclusion
As stated earlier UBL was a very profitable bank which succumbed to the
banking environment that was legislated subsequently. The Bank before
nationalisation clearly demonstrated the stewardship qualities within
the professional management in Pakistan. These qualities still exist,
albeit improved over the years and have profitably served national and
international financial institutions.
A foreign owner does not necessarily start with a competitive advantage
merely because of nationality. This advantage stems from situations
requiring transfer of technology, specialisation not available in
Pakistan, expertise and experience significantly ahead of what is
available locally, innovative products developed and marketable in
Pakistan, to name a few.
There are institutions within the newly formed banks and with local
management in Pakistan which are successful in terms of services
provided and in meeting the objectives of the stakeholders. These banks
are abreast of the resources necessary to develop excellent service
delivering capabilities and are effectively managed with the desired
capital adequacy ratios.
Although it is appreciated that most of these institutions are in the
private sector, there are no compelling reasons to support foreign
ownership. Such shareholdings are discouraged in other countries. This,
however, does not negate foreign investment in the banking sector
whereby multinational banks are allowed to open branches in Pakistan.
A decision which is bold both in terms of the challenge it presents to
turnaround the giant financial institution and also to assure the IMF of
better performance could have been taken. For such a recommendation to
be worth considering a strong case has to be prepared. It is not
possible without more detailed information to discuss such a plan but
the persuasive factors have been highlighted which are thought
provoking.
It must also be noted that other financial institutions including Habib
Bank Limited and Bankers Equity Limited will be put on the privatisation
block soon. Although, the underlying considerations for the proposed
deals may not be similar to those of UBL, future decisions require
careful review. There is no doubt that some of the matters discussed in
this Article are most relevant.
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960330
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Market still groping for direction
-------------------------------------------------------------------
Mohammad Aslam
Stocks passed through an eventful week as many previous records were
broken and new ones set up.
The mid-week rally, which pushed the index up by 101 points or by Rs.17
billion has, however, raised hopes that selective investors may come to
the aid of ailing market. The last sessions in which the index rose by
over 101 points was another feature.
News that the Privatisation Commission has received a higher bid for the
sale of Kot Adu Thermal Power unit at $.1.58 billion from a British
company and formation of a consortium of foreign companies to buy the
controlling shares of 26 percent of PTC were well-received in the rings
late in the week and boosted the sentiment, triggering buystops in Hub-
Power and PTC.
The KSE 100-share index after early breaking the psychological barrier
of 1,500 points later managed to finish slightly higher at as compared
to 1558.60 a week earlier.
The market has lost well over 250 points so far during the last two
weeks, which means wiping out of the market capitalisation of Rs. 40
billion and it is a colossal loss in the current uncertain conditions,
analysts said.
But bulk of the selling is confined to PTC and Hub Power, which
accounted for 120 and 85 million shares, out of the total 250 million
shares, dealers said.
Bulk of the selling was, however, confined to those shares where capital
gains were still left and investors hastened to cash in on the available
margin. Bank shares led the decline, falling sharply under the lead of
Askari, Bank of Punjab, MCB and Citicorp. Heavy selling in Adamjee
Insurance at the higher levels and the consequent sharp fall featured
the trading in the insurance sector.
Textile shares did attract stray support at attractively lower levels on
reports of a large cotton crop of 10 million bales.
The interesting feature was that most of the leasing shares and
modarabas came in for active short-covering during the mid-week snap
run-up and ended partially recovered and so did most of the ICP mutual
funds under the lead of third, 4th and ICP SEMF.
After initial decline in line with massive selling in PTC vouchers,
communication shares later managed to recover smartly under the lead of
PTC, Pak Datacom but Telecard remained under pressure and ended lower.
Massive activities in each session in PTC has created new record for an
individual share as never before in the history of the Karachi stock
Exchange any other share has been so liquid and bone of contention among
investors.
Sugar share did rise fractionally but synthetics remained under
pressure, falling sharply under the lead of Dewan Salman.
Cement shares were actively traded under the lead of Maple Leaf, Lucky
and Cherat Cement and fell owing to persistent selling.
Heavy decline in PSO and Shell Pakistan on active selling by leading
investors featured the trading in the energy sector and so did Honda
Atlas and Pak-Suzuki in autos and PTC in communications.
Bulk of alternate bouts of buying and selling were centred around Fauji
Fertiliser and ICI Pakistan. Others leading among them including Engro
Chemicals and Dawood Hercules also fell and so did BOC, Parke-Davis and
Highnoon but Cyanamid Pakistan rose on stray support.
Volume surpassed the previous single-week record of 230 million shares
at 270 million shares, including a record volume of 74 million on
Tuesday, more than a half of which went to the credit of PTC vouchers
followed by Hub-power, which proved to be the second most active scrip.
In addition to PTC vouchers and Hub-power, the other active were led by
Fauji Fertiliser, Lucky Cement, ICI Pakistan, followed by MCB, bank of
Punjab, LTV Modaraba, Dhan Fibre, Maple Leaf Cement, Sui Southern and
Sui Northern and EFU General Insurance.
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960403
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Mixed performance on stock market
-------------------------------------------------------------------
Commerce Reporter
KARACHI, April 2: Stocks turned in a mixed performance owing partly to
MQMs protest strike call against the killing of some of its activists.
The KSE 100-share index, therefore, could not maintain its gain and was
marginally quoted higher.
They said all eyes now seemed to be focused on Hub-Power after the news
that National Power of Britain, which holds 25 percent stake in it was
the highest bidder for the sale of Kot Addu power unit. Its bid was
$1.58 billion.
Some of the leading banks shares did rise modestly under the lead of
Bank of Punjab, MCB, Askari, Faysal and Al-Towfeek Bank. But leasing
shares and modarabas were traded fractionally for want of support.
Textile and synthetic shares fell. Dewan Salman and Dhan Fibre were
actively traded.
There was a close race to be on the top between PTC and Hub-Power.
Fauji Fertiliser, and ICI Pakistan were actively traded among the MNCs
but other fell barring Parke-Davis, which rose. Lever Brothers fell and
so did Brooke Bond elsewhere.
Hub-Power topped the list of most actives, higher 40 paisa on 32.325m
shares followed by PTC vouchers, up 50 paisa on 31.185m shares, Fauji
Fertiliser, of 65 paisa on 1.660m shares, Lucky Cement, easy 70 paisa on
0.917m shares, LTV Modaraba, lower 15 paisa on 0.523m shares, MCB,
steady 10 paisa on 0.355m shares, and Bank of Punjab, up 50 paisa on
0.133m shares.
Trading volume rose to 69.263m shares from the previous 48.035m shares,
while out of the total 328 actives, 157 shares fell, 97 rose, with 74
holding on to the last levels.
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960329
-------------------------------------------------------------------
The judiciary triumphs II
-------------------------------------------------------------------
Ardeshir Cowasjee
ONE outcome of the Judges Case is the awareness that has been created
amongst the normally unconcerned literate public about the vital
importance of a strong and independent judiciary. Most concerned,
naturally, are those who have suffered in our courts and know the powers
that a judge has over life and death, over liberty and freedom.
However, as a result of the wide publicity given to this case by our
Press, and rightly so, the literate thinking man in the street, formerly
unconcerned, is now very worried about the callous manner in which the
executive has appointed men to the Benches of our courts purely to suit
its own interests.
"What is the difference between a judge, an acting judge, an ad hoc
judge, and an additional judge, about all of whom you have been
writing?" asked my young friend of the enquiring mind, 12- year-old
Hyder Ali, son of my counsel, Barrister Makhdoom Ali Khan. My answer, in
a nutshell, was that all judges who carry a prefix are unconfirmed,
temporary, with no fixed tenure, and are, therefore, insecure and open
to executive pressures and influence. For the roundabout constitutional
interpretation, I referred him to his father and to his grandfather,
Judge Fazle Ghani.
Whatever happens in our country is (often to its detriment) known to
those abroad who have dealings with it. The International Commission of
Jurists, after having sent internationally eminent men to Pakistan to
assess the situation, in its 1987 report ("Pakistan Human Rights After
Martial Law"), urged our government "to restore full jurisdiction to the
courts, .... to leave the powers of transfer of judges o the judiciary,
including that of any judge to a Shariat Court; to review the need for
separate Shariat Courts and to ensure that legally qualified persons
only are appointed as Judges of these Courts; to repeal the provisions
allowing for the appointment of ad hoc or temporary judges; to separate
the subordinate judiciary from the executive; to provide the same
retirement age for Supreme and High Court Judges, and to allocate
adequate remuneration for the inferior judiciary." The judgment now
handed down in our Judges Case endeavours to resolve some of these
problems.
But problems regarding the judiciary are not peculiar to Pakistan.
Listed in the report dated February 6, 1995, (E/CN.4/1995/39) of the
Special Reporter at the 51st session of the United Nations Commission on
Human Rights, under the heading 'Violation of International Norms', are
'types of deviance' relating to judges in the ill-governed states of the
world that are in violation of the principles of the independence of
justice and the judiciary. Amongst them are:
Transfer used either to punish a judge or remove him from a
jurisdiction where his independence is considered a problem by the
executive.
Exclusion of the judiciary from the process of making judicial
appointments and lack of consultation with the judiciary or studied
inattention to judicial advice in matters concerning the judiciary.
Appointment of judges for a limited term or on an acting or
officiating basis, and confirmation of judges in permanent posts and
tenures on political consideration.
Use of temporary, ad hoc, part-time tenures by the executive to
subject the judiciary to a psychosis of fear.
These last two deviances, in our case, now stand rectified by the
Supreme Court order of March 20. A judge can no longer officiate in an
acting, ad hoc, or additional capacity on a permanent basis.
Take the instance of the callous treatment meted out by the executive to
that humane judge, Abdul Hafeez Memon. On April 16, 1994, some three
months before he was to attain the age of 62 (retirement age for a high
court judge), Hafeez Memon, advocate and former judge, was sworn in by
the Governor of Sindh, at a simple but impressive ceremony (SBIC) as
Chief Justice (SJ) of the Sindh High Court (SHC). (He was first
appointed a judge of the SHC by Zulfikar Ali Bhutto. Come Zia and the
PCO, he was not invited to take the oath and reverted to his practice.
Come Benazir and her first round and he was appointed an acting judge of
the Supreme Court. After the dismissal of Benazir's first government and
in view of the recommendation of Chief Justice of Pakistan Zullah, he
was not confirmed and left the Bench).
The first act of the new CJ of the SHC was to answer the summons of the
executive to Islamabad where, the next day, April 17, at an SBIC in the
Supreme Court building he was sworn in as a Judge of that Court by the
Acting Chief Justice of Pakistan.
Justice Memon returned to Karachi and on April 18, and at yet another
SBIC, he was sworn in that day, by the Governor of Sindh, as Acting CJ
of the SHC. Within two days this good man was made to swear three
different oaths at three different SBICSs. Since then, for the past two
years, he has presided over the SHC as an "acting" CJ.
The harassment by the executive of the judges that sat on the Bench to
hear the Judges Case come as no surprise. As wrote my friend Ayaz Amir
in his March 25 column in Dawn "The government and its law officers
expected the Chief Justice of Pakistan to behave like an SHO... the
government's two-pronged response was worthy of any neighbourhood
tough." The trials and tribulations of the Chief Justice and his family
are well known. The government has still given no cogent reasons for
raiding son- in-law Parvez Ali Shah's home during the night of November
19-20 and then suspending him from service. His writ is now fixed for
hearing in the SHC some time next month.
Justice Fazal Ilahi's son, a civil judge, was suddenly transferred
during the pendency of the case and posted to Booni, an outpost in
Mastuj District, Chitral. Remembering that my friend, stolid former
bureaucrat Kunwar Idris had served in Chitral as the adviser to the
absent infant ruler, the Mehtar of Chitral, I asked him where Booni was.
A plane lands at Chitral town, weather permitting, sometimes after a
lapse of a month. To reach Booni, some 60 miles away, one mounts a
horse, advances at a walk along a steep and narrow path, travels for
four days, and, horse permitting, one arrives. Booni is at 36.15N
parallel, close to Tirich Mir in the Karakorams, the mountain that rises
above 25,000 feet.
At Justice Sial's reference on March 24 a friend sympathised with
Justice Fazal Illahi over the travails faced by his son. Every inch a
judge, his gracious reply was that someone's son had to be posted there.
Former Chief Justice of Pakistan, Dr Nasim Hassan Shah, a man of humour
whose company one enjoys, says that the Supreme Court order is a great
step forward and is to the advantage of the people, in particular of the
judges themselves. It is most unsettling to be an unconfirmed judge,
looking over one's shoulder the whole time, watching how Big Brother or
Sister will react to what one does. Dr Shah stressed that the executive
must not forget the importance of Article 190: "All executive and
judicial authorities throughout Pakistan shall act in aid of the Supreme
court." (note 'shall').
It must not be forgotten that Article 58 (2)(b) is still very much a
part of the Constitution: "[The President may also dissolve the National
Assembly in his discretion where, in his opinion...] a situation has
arisen in which the Government of the Federation cannot be carried on in
accordance with the provisions of the Constitution and an appeal to the
electorate is necessary." When Dr Shah ruled, in the judgment he handed
down in the Ghulam Ishaq / Nawaz Sharif dissolution case, he did not
feel at that time that government could not be carried on in accordance
with the Constitution. But now, should the executive act rashly and
unnecessarily confront the judiciary head on, as it seems poised to do,
it could be that the President will again be made to feel the necessity
of dissolution. This is something many of us wish should not happen.
What I say is that the executive should not persist in pursuing its own
self-interest and acting against the interests of the nation and its
people. It has conceded all along that the country is being ruled by a
Troika. Now, a troika is a sledge drawn by three horses, with the
leader, the strongest, in the middle, between the shafts of the vehicle
at a trot, while the two wheelers, or outside horses, both pulling at
slightly divergent angles in an array shaped like a fan, gallop one
grudgingly, the other coquettishly. The middle horse, the army charger,
is in control, and with a nudge he can bring into line the Baloch dray-
horse at his side and prod him into acting correctly. But circumstances
should not be created to provoke the trotter to 'constitutionally'
justify his taking the bit between his teeth.
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960404
-------------------------------------------------------------------
IMF-BOI controversy
-------------------------------------------------------------------
THE IMF and the Board of Investment (BOI) are at present locked in
arguments over the continuance or otherwise of the differential fiscal
regimes for investment. The IMF is pressing Islamabad to terminate
special fiscal arrangements for special industrial zones (SIZs), rural
areas and specific industries. It disfavours these different regimes on
the ground that they discriminate between different groups of investors,
encourage mis-allocation of resources and make industries set up prior
to the enforcement of concessions sick. The IMF argues in favour of
having a uniform fiscal regime for the whole country, thus providing an
even playing field for all intending investors. The Board of Investment,
on the other hand, is opposed to the withdrawal of concessions reserved
for the recently set up 12 special industrial zones. The concessions
which are in dispute include reduced customs duty for import of raw
material, reduced excise duties on finished products, total exemption
from sales tax on the import of plant and machinery, losses allowed to
be carried forward for a period of six years, etc.
The BOI argues that special treatment is allowed to SIZs because the
industrial units set up there are restricted to sell only 40 percent of
their actual production in the domestic market and the remaining 60 per
cent will have to be exported. The BOI contends that it is because of
the concessions that the zones have attracted commitments of foreign
investment worth about $ 2 billion in the very first year. Prospects in
the coming years are brighter. But if the fiscal concessions are
withdrawn, investors may also pull out. The positions taken by both, the
IMF and the BOI, are partly correct and reconcilable. None will dispute
that special incentives are required to attract investment in industries
and regions which have hitherto remained unattractive. But the
incentives should be relevant and not hurtful to the interests of other
regions and industries. For instance, incentives relevant to backward,
under-developed areas are measures which promote norms of civil society
in tribal backwaters, spread of education, manpower training, physical
infrastructure, etc. In these areas fiscal incentives alone would not
promote industrialisation; rather they would encourage unscrupulous
entrepreneurs to misuse them, hurting the interests of industries
elsewhere. Pakistan's short history is replete with examples of such
misuse. Hence fiscal concessions need to be uniform throughout the
country, while other incentives should be tailored to the requirements
of special regions and industries.
Governments in their eagerness to promote industrial development in
backward regions and rural areas and to provide encouragement to
specific industries have been sanctioning ad hoc fiscal concessions. The
packages of concessions were never formulated on the basis of any
detailed study about how these would impact on industries and regions
which were to remain outside the preview of the concessionary regimes,
and also on the economy as a whole. The ad hoc nature of the incentives
often failed to achieve the desired objective. On the contrary, they
sometimes had an adverse effect on industrial estates and industries set
up earlier. The monumental examples of the failure of this policy are
Balochistan, the interior of Sindh and the backward areas of Punjab and
the NWFP. These areas have received fiscal concessions for the last five
decades with little to show in terms of industrialisation. It is only in
recent years that some industries have come up in western Punjab and the
NWFP and that too not because of the fiscal incentives but for other
reasons which have emerged recently. Among them, education, trained
manpower and physical infrastructure are most important. As a result of
discriminatory fiscal concessions, industrialisation process in
economically favourable places was inhibited and industries set up
outside the concessionary zones were adversely affected because of the
malpractices in using concessions, as was the case with Gadoon Amazai.
In the light of our past experience, the divergent positions of the IMF
and BOI need to be, and can be, reconciled. That foreign investment is
essential at this stage of our development, no one disputes. It is also
conceded that a large number of countries are competing for it. Pakistan
has to go the extra mile if it has to hold its own in this race.
Adherence to the commitment is a basic condition to promoting confidence
among the investors. Hence commitments must be kept. The two positions
of IMF and BOI can be reconciled by extending the concessions reserved
for SIZs to all industries, irrespective of their locations, which
fulfil the criterion. And the criterion is that they must export 60 per
cent of their production. This would not only attract investment but
encourage all industries to participate in the export drive to the
maximum extent. For attracting investment in special zones and specific
industries, incentives should be directed towards developing social and
physical infrastructure and administrative facilities. A uniform fiscal
regime must not, in any case, be brought about abruptly, terminating any
commitment that may have been made to the investors.
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960404
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A carefully judged advance
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M.B. Naqvi
THE Supreme Court has done us proud. It refused to relent on the
question of separation of judiciary from the executive by the given date
of 23rd of March. Then, it delivered a short order in the Judges Case
that has warmed the cockles of all hearts that pine for a strong and
independent judiciary.
The SC has interpreted the constitutional provisions in a manner that
reduces the room for manoeuvre by a government in its quest for packing
the High Courts and the Supreme Court with pliable judges. It has also
resorted to what may be called a limited degree of judicial activism in
opening a door through which a much needed reform can be carried through
by judicial means that regrettably could not be done by the direct
action of the Parliament: strike down the Eighth Amendment in the
Constitution that the former military strongman, Gen. Zia-ul-Haq, forced
down the throats of a weak and supposedly apolitical Assembly.
The government has not shown much grace. It has, after long cogitation
and, perhaps, persuasion from certain high quarters, agreed to implement
the order about separation of the judiciary from the executive. Its own
legal reforms envisage the creation of a new category of executive
magistrates who will perform the work of judicial fire-fighters in
urgent cases of law and order in the streets and such like. When looked
at closely, the creation of this new category is only a feint to
preserve the position that obtains with the minor gesture of putting
some magistrates under the supervision of the District Judges and
through them of the High Court. Who knows if the bulk of local
magistracy will not go on working under the Deputy Commissioners /
District Magistrates who tend to do mostly what the government wants,
thus substantially preserving the state of affairs that was.
The governments intentions are an important element in how the reform
will work out. One aspect is depressing: the bulk of the administration
at the Centre and in the provinces cannot conceive of running the
country without having local magistracy at its beck and call. Therefore,
it looks as if it wants to preserve as much of the old arrangements as
it can get away with by inventing the new terminology of executive
magistrates. Depending on the circumstances and actual official conduct,
this reform can turn out to be only a shabby manoeuvre, though the
possibility of some good resulting from the minimal change that will be
wrought cannot be ruled out. It is for the public opinion to take notice
of the governmental attitude in the matter and force it to bend before
the clear-cut desire of both the higher judiciary and liberal opinion.
Many seasoned administrators and judicial officers see possibilities of
friction between the magistrates that are not under Deputy Commissioners
and District Magistrates and those that are (executive magistrates).
There would always be difficulty in determining where the jurisdiction
of one ends and that of the other begins. It will also depend on the
nature of action taken and verdicts given by executive magistrates
with Which the purely judicial officers may disagree. In some cases the
judiciary as a whole can conceivably be pre-empted. The prospect does
not seem to be one of reasonably friction-free functioning of either
local administration or judiciary at local levels.
Insofar as the main Judges Case is concerned, the position taken by the
SC through the unanimous judgment has occasioned great happiness among
those who stand for undiluted democracy and emphasise the role of a
fiercely independent judiciary. The governments case, throughout,
comprised quibbling and a ritualistic reliance on the precedents not
only in Britain, India and other Commonwealth countries but also in
America. The message from the law ministry in the government has been:
We have always appointed judges and we want to continue doing so. It
appears to say look around: is it not written in the Indian and other
constitutions that the government will appoint judges after consulting
with the relevant chief justice; follow this practice; there is no call
for any change. By interpreting the word consultation to mean that
the advice of the concerned CJ should be binding on the government, the
government argument runs, the SC decision amounts to judiciary
appointing and perpetuating itself as a hidebound caste. That is wrong.
It is unnecessary to recapitulate or summarise the arguments that an
array of legal luminaries presented before the apex court. What the
judgment does is to reject the government interpretation of the word
consultation and also advice. A purely legal debate is anyhow out of
the place here; in any case, it has taken place and a conclusion has
been arrived at. It may be said that the government has already
indicated that it will appeal against the judgment through a review
petition and ask for a stay order to start with. That illustrates its
displeasure of it and the intent to resist. What concerns one here is
the politics of the whole thing. One thinks that the judgment will do a
lot of good by restricting the governments ability to appoint judges
with questionable competence and partisan loyalties.
Notable political facts are several. The higher judiciary in this
country has certainly felt constrained and, to an extent, handicapped.
In contrast, the governments influence over the judiciary and judicial
matters has been far greater than is healthy for a democracy. For a
democrat, a governments intentions are always suspect. It should be
presumed guilty until it proves its innocence through correct behaviour.
The number of Pakistanis who have actually questioned the independence
of the higher judiciary in this country is large. They have relied on
many famous and epoch-making judgements that have saddened a lot of
liberals.
Beginning with Justice Muhammad Munirs judgements in several cases
dealing with the whole clutch of governor-general Ghulam Mohammads
dismissal of the first Constituent Assembly that justified the civilian
dictators successful coup detat by relying on the dismal Doctrine of
Necessity. He also justified Ayub Khans military take-over and held
that this action itself (a successful coup) was the source of a new
legal system of his (Ayub Khans) choice. It was this precedent that was
followed by the Supreme Court under Justice Anwar-ul-Haq to sanctify
Gen. Zia-ul-Haqs usurpation on the flimsy basis of his promise to hold
the election in 90 days a promise that could be broken and was.
There were so many other judgements by nearly all high courts and even
the Supreme Court in which the strongly articulated wishes of the
government were somehow respected by the judges even though the
government could easily be seen as acting with ascertainable mala fide
intention. The fact that certain accused cannot get bail for years on
end and God knows how many writs concerning violations of human rights
are kept pending for inexplicably long periods. Consequently, the higher
judiciary has earned, without being mealy-mouthed, a bad name; its
collusion with the executive authority has been widely impugned.
No doubt, official apologists can cite a large number of Supreme and
High Court judgements that would seem to have redeemed the honour of the
superior judiciary. It held illegal all the three dismissals of
governments along with the Assemblies by Ghulam Ishaque Khan. The SC
called Yahya Khans martial law an act of usurpation. No doubt, these
are facts too. It cannot be denied, however, that they came long after
the event and anyhow provided no relief, except in the case of Mian
Nawaz Sharif. All these became theoretical exercises by not deciding the
cases, without long delays, making the appeals infructuous one way or
another. The real government could abort the relief in Mr Sharifs case.
Powers message to SC was clear: do not be too bold; we know how to get
around you. No doubt, something needed to be done to clear the name of
the higher judiciary in Pakistan. By standing firm and giving this
judgment, the SC has gladdened all those who want to see a strong,
upright, independent and politically neutral judiciary as an effective
check on the executive authorities.
As for judicial activism, there are snares along this slippery road. The
writer is not against activism per se, especially in a country like
Pakistan where the stranglehold of feudals with their typical mentality,
interests and lack of commitment to higher ideals, has blocked all roads
to reform. The Supreme Court has made a historic advance by underlining
the distinction between the original provisions of the 1973 Constitution
and the accretions forced on it by the Eighth Amendment. That clears the
ground for killing it by judicial sentence. It is a true case of
judicial activism and entirely justified in the circumstances as well as
in terms of law and its intent.
But some considerations regarding judicial activism need to be kept in
view. All societies need it because none can remain static. But activism
can move both ways, forward and backward; judges can be dyed-in-the-wool
reactionaries while some may be forward-looking liberal humanists.
The particular SC action over the Eighth Amendment is certainly
uplifting, especially after both the PM and the Leader of the Opposition
have flunked the test of their democratic commitment by refusing to
cooperate in amending away the hated Amendment.
===================================================================
960404
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Seeded Del Harris falls in British Open
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Dicky Rutnagur
CARDIFF, April 3: Jansher Khan, the World champion, is rarely in need of
lucks help to win titles, but his path to winning the British Open
Squash Championship was eased by the fall in the first round of two
major seeds in his half, Peter Nicol, of Scotland, and Englands number
one, Del Harris.
After Del Harris four appearances he is still to win a match. Himself
ranked four, he was beaten in five games by the number 27, Paul Johnson,
an Englishman.
Harris went down rather abjectly, although in five games, to little-
known Alex Gough, a Welshman of 25, ranked 50 in the World. Gough was
coached through the match by Australian Chris Robertson, the 1992
runner-up who, in his playing days always beat Harris with the greatest
of ease. Also in Goughs favour, was the fervent support of his home
crowd.
As for Harris, he was desperately handicapped in movement by a groin
injury which was the legacy of his match ten days earlier against
Jansher, in the Super Series finals. Harris won that match, but at the
heavy price of aggravating an injury which has dogged him for many
months.
I had thought of pulling out. It was a gamble not to have done so. I
was just not sharp enough. Gough, on the other hand, ran like a
terrier. He was totally overcome by fatigue, but the crowds cheering
and the vulnerability of his opponent kept him trying.
Gough won the first game and lost the second. In the third, he slowed
down the pace to be able to re-charge his batteries but with the
pressure eased, Harris began to hit a better length and keep his
opponent under control.
Realising he was letting Harris off the hook, he mounted another
onslaught. It was too late to save him the third game. But he romped
through the fourth. Harris was not to give in easily, however, and
stayed in the fight until 8-all in the fifth.
But then Gough hit two winners and the Englishmans spirit was broken.
Gough was on the threshold of victory before the hapless, pain-stricken
Harris made his last gesture of defiance.
While the demise of Harris and Nicol, who should have met Jansher in the
quarter-finals and semi-finals, respectively, must have been a source of
relief to the holder, he could not have been too pleased with his own
performance while beating Derek Ryan, of Ireland, ranked 17.
It took Jansher 81 minutes to win 16-17, 15-13, 15-13, 15-11. Jansher
will rest before meeting his fellow Pakistani, Zarak Jahan Khan,
tomorrow night. Zarak too had a testing first round match, against the
Welsh number one, David Evans. He lost the first game, won the second
and third in relative comfort, but had to fight tenaciously to keep
Evans at bay in the fourth.
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960404
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Pakistan may keep hold on British Open
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A. Majid Khan
Pakistan, one of the greatest squash-playing nations in the world,
enjoys the incomparable record of fourteen successive victories in the
prestigious British Open, first through legendary Jahangir Khan 10 wins
in a row) and now his successor Jansher Khan, (winner of four previous
championships) has already launched his assault to retain the title for
the fifth consecutive year at Cardiff, Wales.
World record holder Jansher Khan, the top seed and world number one, who
had virtually monopolised the Professional Squash Association (PSA)
Super Series, for the past two seasons (1994 and 1995), seems certain to
stretch Pakistans domination for the 15th successive year in the
British Open, instituted in 1930 and now the oldest championship.
Unbeaten for the past 22 months with a haul of 17 PSA Super Series (nine
wins in 1994 and eight in 1995) remarkable Jansher Khan has also started
the 1996 super series contest that began with the British Open.
The British Open had been shifted to Wales from London, England,
understandably for the sponsorship. Its traditional scoring system of
nine points had also been changed to come in line with the 15 points
system, introduce seven years ago in the 1989 World Open, the major
event of the world squash calendar.
However, an unnecessary hue and cry had been carried by the world media
on Jansher Khans defeat at the hands do Englands Del Harris currently
ranked World No. 5, in the top eight of the round robin stage of the
Super Series final held in London. It was not a super series event in
the true sense. It was contested under an experimental scoring system
and one of its objectives was to make squash more attractive from the
television point of view.
The only question of concern is that squash is losing ground in Europe
as no PSA Super Series event was staged, as it used to be in the past,
before the British Open.
The European countries seem to be more interested in holding the less
prize money events for the benefit and advantage of their players rather
than super series events contested by world renowned players and
virtually monopolised by the remarkable Jansher Khan whose only defeat
was at the start of the 1994 season in the Leeks Classic at Cardiff in
February.
The foreign Press is building up Del Harriss morale after his victory
over world number one Jansher without mentioning the Englishmans
humiliation in the Cairo World Open final where the latter to the Khan
in November last year. But Del Harris is a great fighter.
Certainly munificent Jansher aged 26, who had won his last super series,
eight in a row, in the 1995 season, would be facing the other world
class players, who are also determined to break Pakistans unprecedented
domination in the British Open. But the great Khan is in his own class
and is fully capable of facing all challengers with his ruthlessness to
return home victorious.
No squash nation had won the British Open 28 times in its 45 years
participation that began with the living squash legend Hashim Khan.
Jansher is fully conscious of the importance of the British Open and the
nation is looking forward with great hope that the world champion would
succeed in maintaining the Pakistans hold in the Cardiff British Open.
Besides title favourite Jansher Khan, Pakistans seasoned campaigners in
the 32-man main draw of British Open are Zarak Jahan Khan (World No II)
and Asian champion Mir Zaman Gul (World No. 28).
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