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DAWN WIRE SERVICE
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Week Ending : 07 November 1996 Issue : 02/45
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Benazir wants Leghari to quit
Leghari vows not to delay elections
Meraj vows to hold free, fair elections
Zardari in custody of intelligence agency
Gilani doubts elections will be held in 90 days
Pressler eliminated from US politics
---------------------------------
IMF team to continue talks with new govt
Tax increases will not work
Corruption: mother of all economic ills
The new package for IMF: gains and pains
Rs. devaluation: a disastrous exercise
KSE 100-share index soars by 78.48 points
---------------------------------------
The changing of the guard Ardeshir Cowasjee
The politics of corruption M.B. Naqvi
The awam and the Black Label classes Ayaz Amir
Task before the caretakers Sultan Ahmed
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Yet another record by Wasim Akram
New chapter in our sports history
The age factor and the boards stance
Pakistans victory: Zimbabwe series clinched
Hasib hits PCB on policies
Playing positive aimed at: Mushtaq
Case against Zeeshan weak: Hendricks
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961107
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Benazir wants Leghari to quit
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Bureau Report
ISLAMABAD, Nov 6: Ousted prime minister Benazir Bhutto said on Wednesday
that she would move the Supreme Court against her dismissal by President
Farooq Leghari and also called upon Mr Leghari to resign to provide a level
playing field to everyone in the coming elections. She asserted that it was
necessary to prove that his action had not ulterior motives.
Addressing her first press conference since her sacking, Ms Bhutto
vigorously defended her governments performance and subjected the
president to a barrage of harsh comments. At one point she even suggested
his involvement in the murder conspiracy of her brother, Mir Murtaza
Bhutto.
She said: The president came back from a foreign trip on the 20th. The
same evening my brother was gunned down outside the very garden I was
married in. The next day the supreme court is forcibly opened for the
filing of the reference. Then the president steadily starts writing letters
to the government. Responding to a question, she said: I have given the
sequence of certain facts and have made no direct charge.
Ms Bhutto expressed the apprehension that Mr Zardari had either been picked
up by the rangers or the ISI who might be subjecting him to harassment and
torture. Is this how a citizen of the country who happens to be the
husband of a twice-elected prime minister, himself a twice-elected MNA, son
of an MNA and the son-in-law of a former prime minister, treated at the
dawn of the Leghari era, she snapped.
Justifying the rationale for demanding the presidents resignation she
argued that if the president had genuinely been led into mistaking his
action as being in national interest then he must resign and pass the
mantle to the Senate chairman so as to ensure the holding of a free and
fair election. She promised to re-elect him for another term if our
government is restored by the court because he, too, would have shown his
sincerity by resigning from the office. Accusing Mr Leghari of betraying
her confidence, she said: Farooq Leghari broke his solemn pledge with the
people, he broke his commitment to me, his leader, by dissolving the
assemblies. A government is a trust of Allah the Almighty to be exercised
by the people and he (Leghari) has broken the trust of Allah. She went
on: Power is such an intoxicant that people who sit in the chair start
believing themselves to be Ameerul Momineen, forgetting that the real power
lies with the people. He was a perfect Number Two man with no vision, no
great strategist but a good executioner of my directives. I elevated him
and gave him this high honour, but he forgot. What he has done is not only
against the will of the people but also against the vital security
interests of the country.
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961106
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Leghari vows not to delay elections
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Bureau Report
ISLAMABAD, Nov 5: President Farooq Leghari assured the nation on Tuesday
that February 3 elections in the country would be fair and free and would
not be delayed at any cost.
Although it is not possible to conduct accountability and census within 90
days, I could assure you that fresh elections would be held according to
the Constitution on February 3 next year, he further stated.
Addressing the nation on radio and television , the president touched upon
all important political and economic issues in his 30- minute speech ,
during which he also held out an assurance that law and order situation
would be improved and the idea of good governance promoted.
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961106
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Meraj vows to hold free, fair elections
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Bureau Report
ISLAMABAD , Nov 5: Veteran politician Meraj Khalid pledged on Tuesday to
hold free and fair elections in February.
Talking to reporters at his residence after being named caretaker prime
minister by President Farooq Leghari, the 80-year-old former speaker of the
National Assembly said his first priority would be to hold free and fair
elections in the country.
It is a big responsibility and, God willing, I will try to fulfil it to
the best of my ability, the soft-spoken politician, who is a member of the
Pakistan Peoples Party, said.
Mr Khalid was ignored by the party in the 1993 elections and was not given
party ticket . But he was later appointed Rector of the International
Islamic University, Islamabad, on the recommendation of Benazir Bhutto.
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961107
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Zardari in custody of intelligence agency
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Nasir Malick
ISLAMABAD, Nov 6: Former MNA Asif Zardari is in the custody of a non-
civilian intelligence agency, a highly placed official told Dawn on
Wednesday.
Mr Zardari was detained at Lahore soon after the dismissal of the Benazir
government and was later shifted to Islamabad in a special plane.
The source said Mr Zardari was being interrogated by the agency in
connection with the murder of Murtaza, who Ms Bhutto says was murdered as a
part of larger conspiracy against the Bhutto family.
The source said Ms Bhutto sent Aftab Shahban Mirani to meet President
Leghari on Wednesday to demand that Mr Zardaris lawyers be allowed to meet
him.
She has also reportedly directed Mr Mirani to lodge an FIR with the police
on her behalf if Mr Zardaris lawyers were not allowed to meet him. The
source said Mr Zardari had not been handed over to the civil administration
till late Wednesday night.
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961107
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Gilani doubts elections will be held in 90 days
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Staff Reporter
LAHORE, Nov 6: National Assembly Speaker Syed Yousaf Raza Gilani does not
believe that general elections will be held in 90 days, as promised by the
president.
Talking to reporters on Wednesday he said if at all the elections were
held, there would be no change in the situation as Ms Benazir Bhutto would
return to power. And if there was no change in government, the dissolution
of the National Assembly would prove an exercise in futility, he argued.
He indicated that he would challenge the sacking of the assembly in court
during the next few days.
About Article 58 (2)(b) of the constitution which empowers the president to
dissolve the assembly, the Speaker said the people of Pakistan hated it. He
hoped that because of the public resentment, no president would be able to
exercise this authority in future.
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961107
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Pressler eliminated from US politics
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Staff Correspondent
WASHINGTON, Nov 6: Pakistans main target in the US elections, Senator
Larry Pressler, was eliminated from American politics on Tuesday when his
Democratic rival Tim Johnson scored a convincing win in South Dakota.
Other candidates backed up by Pakistani-American community including Bob
Torricelli of New Jersey and Tom Harkin of Iowa also won easy victories in
the Senate, almost compensating for the retirement of Senator Hank Brown
from the Upper House.
Pressler, who had become the icon of anti-Pakistan feelings in the Congress
and was thus generously supported by the Indian and other anti-Pakistan
lobbies, was last night trailing at least five percentage points behind
Johnson, a five-term veteran of the Lower House from the same constituency.
He was the author of the Pressler Amendment and when it was adopted in
1985, he had claimed he was acting in the interest of Pakistan by providing
a waiver to the President to continue economic and military aid to
Pakistan. After 1990 when his amendment was invoked against Pakistan, he
also adopted an anti-Pakistan stance and dropped in the middle of the
Indian lobby, getting strong financial support from Indian-Americans.
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961106
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IMF team to continue talks with new govt
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Bureau Report
ISLAMABAD, Nov 5: The International Monetary Fund (IMF) will continue its
talks with Pakistan government for reviving $600 million standby loan
despite the dismissal of Benazir government, an IMF source said on Monday.
The source said the IMF delegation which is here will continue its work
irrespective of the change of government in Pakistan.
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961102
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Tax increases will not work
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By Dr Farrukh Saleem
A MERE four months ago, the Budget 1996-97, had introduced a hefty Rs 40.8
billion worth of new measures. We have not yet reached the half-way mark of
our distressed fiscal-year journey and the government has now been forced
to burden the faltering economy with an additional Rs 13 billion in taxes
and Rs 20 billion cut in the already humble development allocation.
Income tax withholding on imports has gone up from 4 per cent to 5 per
cent. Income tax withholding on supplies from 2.5 per cent to 3.5 per cent.
A 2 per cent service charge on imports subject to inspection by
SGS/Cotecna. Passport fee has gone up 100 per cent, endorsement fee also by
100 per cent, airport tax 100 per cent, petroleum prices 10 per cent, and
excise on gas distribution by 10 per cent.
What could the government do? There is a Rs 100 billion gap between its
revenue stream and expenditures. The IMF would not let that gap continue,
and a drastic cut in the budgetary deficit would actually be in the long-
term interest of the state itself. Granted that the government does need to
raise additional revenue, but where the government is at fault is its
expectation that increasing taxes shall narrow this gap. The highest
executive office in the land, it seems, has been led to believe that an
increase in tax rates will increase government revenue resulting in a
smaller budgetary deficit. Expecting that an increase in tax rates (beyond
a certain level) would generate additional revenues for the government
exchequer is like living in the economic dark ages. The policy of
increasing taxes reduces incentive, creates inefficiencies, forces
legitimate business to go underground and all these factors collectively
reduce the potential for taxation.
Modern dictates
The dictates of modern economics assert that a government looking to raise
additional revenue should merely concentrate on stimulating productive
investment in new capital equipment and increased work effort thereby
improving the overall economic conditions. An improved, vibrant economy is
what shall create employment and the added revenue that can then be taxed
to raise additional taxes.
Our economy has long been in difficulty. The existing tax base is already
taxed to its fullest potential and every new tax measures is bound to
depress (official) economic activity resulting in a decrease in
governmental tax collection. Renowned supply-side economists, like Dr
Arthur Laffer, a one-time Reagan adviser, have gone as far as suggesting
that government tax revenues will increase if marginal tax rates are cut.
The basic idea is that the reduction in marginal tax rates will increase
the incentive to work and earn income thereby raising the governments
total tax revenues. Just improve the supply-side of the economy and also
achieve the goal of increasing government revenue. One stone two birds!
The urgency in narrowing the ballooning budget deficit cannot be over-
emphasised. The only two ways to achieve just that are:
(i) Increase government revenue, and/or (ii) decrease government
expenditure; or ideally a combination of the two.
The government is justified in targeting for additional revenue. All
targets have, however, failed in the past and the future does not appear
promising either. The principal reason behind repetitive failures has been
the governments attempt to increase its revenue by increasing tax rates on
the existing set of taxpayers.
The right approach should have been to forget tax increases and instead
focus on expanding economic activity through massive investment incentives.
This would have expanded the overall economy and along with it the
potential to tax the added economic mass.
The political will to tame the deficit via a genuine decrease in government
expenditure has simply been outside the realms of consecutive political
governments that have taken the helm in Islamabad over the past decades.
None of the existing purely political alternatives offer any resolution to
this national predicament.
Outdated apparatus
Taxes should not be increased. All such moves shall prove to be self-
defeating. A decrease in taxes coupled with other incentives shall,
however, eventually result in higher government revenue (because of
increased economic activity).
The existing tax collection apparatus has also been outdated for a very
long time.
What is needed is a complete, thorough restructuring. Modern elements of
fairness, clarity, certainly, convenience and efficiency should be made
part and parcel of a new taxation policy.
Fairness in tax policy means that all citizens should be taxed in direct
proportion to their ability to pay. Tax policy ought to be clear and
certain.
Uncertainty and arbitrary policies have caused us much damage. Convenience
in tax policy refers to tax payers ease in compliance with tax laws.
Finally, the administration of tax policy should be efficient and
economical.
The other major problem with the current tax policy is its overwhelming
dependence on indirect taxation. In the Budget 96-97, the drafters have,
for instance, targeted to collect Rs 210 billion, from indirect customs,
sales and excise taxes out of a total tax collection target of Rs 296
billion. The emphasis should gradually move towards a target of 90 per cent
revenue coming from direct income tax collection.
Frequent increases in tax rates in this country have long been diverting
resources to non-productive uses whereby tax payers have been forced to
convert above broad transactions into hidden, off-the-record business
activity. Under such a policy everyone is a loser the government, the tax
payers and the system.
Cut taxes, bring in investment incentives, broaden the tax base and then
let the miracle of free market fulfil government ambitions of increasing
tax revenue.
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961102
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Corruption: mother of all economic ills
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Dr. Jassim Taqui
AS EXPECTED, corruption is leading Pakistan to a serious economic problem,
not only at the domestic level but also at the international one. Local
media have highlighted corruption scandals, kickbacks, misuse of power,
violations of the laws of the land and international laws since they regain
their freedom in 1985.
Unfortunately, however, successive governments never acted seriously to rid
the country of the evil consequences of this problem. Thus at the domestic
level, it has become the norm of the day to misuse power by all and sundry.
Within the last 11 years, corruption has assumed unprecedented dimensions.
Within 1990-1993, two governments were dismissed summarily by the President
of Pakistan, mainly on charges of corruption. And yet, no subsequent
government has taken any serious step to eliminate or at least to check
this evil.
Internationally, the story is different. Donor agencies have been
complaining privately of rampant corruption. Time and again, they have
reminded the governments of corruption (diplomats call corruption non-
transparency).
As usual, officials used to listen and forget, thinking that the subject
was not serious enough, but, they were shocked by the candour of Berlin-
based Transparency International (TI). In 1995, the TI classified Pakistan
as the third most corrupt nation in the world. As usual, there was complete
silence, but, in 1996, Pakistan has been classified as the second most
corrupt nation in the world after Nigeria.
Clout
The report of TI is extremely serious. It should be taken seriously by the
authorities since TI is very influential. It has direct contact with all
donor agencies, UN bodies, Western nations, international financial and
trade institutions and international business. Transparency International
has also established ties with media. It is participating in public for a,
and use publicity campaigns to broaden public awareness of the damage
caused by corruption and the need to counter it, and the means to reduce
it. Therefore, one should imagine the damage Pakistan has to suffer
internationally because of its being classified as the second-most corrupt
nation in the world by TI.
Global phenomenon
True, corruption is a global phenomenon, but it is equally true that two
wrongs do not make a right. Fighting corruption is in the national
interests of Pakistan. Corruption is providing business to wrong suppliers
and the wrong contractors at the wrong prices.
The victims of corruption are the poorest people. They suffer the most
since public resources are wasted instead of being used to meet their basic
needs. Thus, the social fabric is undermined, accountable government is
subverted, and market competition is distorted.
Within three years of the establishment of TI (established in 1993), aid
agencies have started encouraging TI in its mission and take into account
its findings in business transactions with developing countries. In fact,
TI has been established at a time when the curse of corruption is
increasingly recognised within the international development assistance
community as a major hazard. The aid agencies have made it clear that they
wanted to eliminate corruption in business and financial matters. Thus they
extended full support to the TI and even assisted it with their findings,
reports, and classified data.
Ignoring the new global reality transparency in international business -
has created immense difficulties for the economic decision-makers. For
example, the IMF contested our figures and statistics. They openly accused
the economic team of tampering with figures and economic statistics.
Consequently, the IMF team have rejected our statistics, economic survey,
and even budget documents. Reportedly, the economic team supplied the IMF
with three different statistics. The first set showed the economic growth
as high as 6.5 per cent of the GDP. The second reduced the figure to 6.1
per cent. And the third further reduced it below 6 per cent.
Slap in our face
Similarly, the IMF has not accepted the deficit in the budget. According to
the government, the deficit was reduced to 4.6 per cent of the GDP in 1995,
but the IMF believes it is as high as 7 per cent of the GDP. Similarly, the
economic team crudely changed the bank accounts to show that the government
borrowing was about Rs.28 billion while the IMF figures show that in fact
the borrowing crossed the Rs 74 billion mark.
Now this is rather an embarrassing situation whereby, the government itself
is being accused of non-transparency. Therefore, the prestige and the pride
of the government of Pakistan should be restored by clarifying the real
position and by enforcing transparency at all levels.
Possible consequences of rampant corruption might be the cancellation of
the IMF according with the government. This could lead to international
economic boycott and the initiation of one of the worst economic crisis in
the history of Pakistan. Already, the government has exhausted its options.
Public financial institutions are virtually bankrupt. Domestic debts are
high. Deficit financing has crossed safe limits. Resultantly, the
government has been under tremendous pressure of the donor agencies. They
can play havoc with the national economy if they demand payment of short-
term debts estimated at about $7 billion. And since it was the government
which opted for IMF conditionalities, accepted economic reforms,
privatisation of the public sector, deregulation, and supervision by the
IMF on even sub-sector level, it is better for the government to handle the
issue on an urgent basis and find a just and lasting settlement of the
issue that serves the highest national interest of Pakistan.
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961102
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The new package for IMF: gains and pains
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*From R.M.U. Suleman
THE SOLE AIM of the Economic Stability and Reforms Package just announced
is to humour the IMF sufficiently to make it open its purse strings to give
Pakistan a measly sum of at least $300 million dollars. Pakistan is
desperately in need of this amount from the IMF to avoid the position of a
defaulter in the international finance market.
A country heavily dependent on foreign borrowing, mostly for servicing
older borrowings, just cannot afford a lowering of its credit rating by
private agencies like Moody, and Standard and Poor, who take their cue
mostly from IMF and other international financing agencies. This is exactly
what Pakistan is under threat of for the past few weeks.
In desperation, Pakistan is prepared to go to any length. The new package
has been presented not by Mr. V.A. Jafarey, the virtual Finance minister,
but by Dr. Yaqub, the SBP Governor. Dr. Yaqub is a man of many parts, of
which one is his decades-old service with the IMF.
The package unfolded on October 22, is quite heavy in terms of expenditure
cuts (Rs. 27 million), additional revenue effort (Rs. 13 million),
devaluation of the Pakistani rupee against the US Dollar (8.5 per cent) and
a raising of SBPs Reporate from (17 per cent to 20 per cent).
Quantitatively, these measures are well above the level of the mini-budget.
Many are already calling them a maxi-budget.
IMF acceptance
What really matters even worse is the packages acceptability to the IMF.
In quantitative terms they may be broadly in line with what the IMF had in
mind. But it does not carry any prior approval of the IMF. That approval
will depend as much on the quality of efforts as on their quantities.
Expenditure cuts do not deviate much from the overall quantities indicated
by the IMF but these were to be attained mostly by a 30 per cent cut in
defence outlays, which have been left completely untouched. Cut in non-
development, particularly wasteful, expenditure, were more acceptable than
cuts in development expenditure. Actually the cut in development
expenditure in the new package is nearly three-fourths of the total
expenditure cut.
The IMF-desired mobilisation of additional revenue resources mainly through
a shift toward a single rate general sales tax and meaningful tax on long
virtually exempt agricultural incomes. Four different rates of GST were
negotiated by the government to mollify rebellious leaders of business and
industry in the wake of the last budget at the risk of annoying the IMF. It
is likely that this infraction may be excused if an assurance of its being
a very short-term tactical move is accepted. The level as well as nature of
the levy on agricultural income can, of course, be treated as nothing short
of a cruel joke.
Cruel joke
If the levy on agriculture income is placed at par with the taxation of
non-agricultural incomes, its yield is widely estimated at about Rs. 20
billion. This rule-of-the-thumb estimate is being challenged both by
optimists and pessimists. The former would like to raise it all the way to
Rs. 50 billion and Rs. 100 billion.
An IMF inspection mission has already reached Islamabad to judge whether
the new package falls anywhere near the IMFs expectations. If it is found
to fail, the country will be thrown at the mercy of the rapacious
international financial wolves.
At home, the new package has been widely rejected from the very start. The
parliamentary opposition (PML-N) and the business community (FPCCI) were
the first to register their protest by announcing a countrywide strike on
October 26. This strike was fairly successful and was quickly followed by a
sit-in called by the Jamaat Islami (JI) whose protest covered a much wider
range of ills which also covered corruption, mismanagement and
inefficiency.
The new mini-maxi-budget has already been challenged in the Lahore High
Court for its legality as well as propriety. The opposition leader in the
Punjab Assembly, Mian Shahbaz Sharif, says that despite the new package it
is not clear whether the government will be able to pay the next instalment
to its overseas lenders or to receive the next tranche of its with held IMF
standby. He predicted that the IMF would continue to tighten the noose and
the day was not far off when Pakistans sovereignty will go to the IMF.
The said, in fact, the government should have slashed non-development,
wasteful expenditure. He further alleged that devaluation of the rupee was
aimed at meeting the demand that Pakistan should cut its defence
expenditure, since this expenditure has quite a high foreign exchange
component.
Reforms needed
Former finance minister Dr. Mehbubul Haq, feels that the interim budget of
Rs. 40 billion is no substitute to real reforms which are needed to revive
the economy and benefit the poor people. Many of the measures he thought,
will be counter-productive for the real economy. A cut of Rs. 20 billion in
an already modest development budget will unbalance the prospects for
future growth. Rising energy prices will compromise the competitiveness of
the exports that the government wishes to encourage through devaluation.
He further said that a 30 per cent fall in the exchange value of rupee
since last year has already created domestic inflation and stagnation
without increasing exports. Devaluation without introducing basic measures
for reviving agricultural and industrial production is totally useless, he
added.
This was the time to impose tax on agricultural income to fetch at least
Rs. 25 billion a year in revenues. Neither is there any serious attempt to
document the economy and to seriously collect the non-agricultural taxes
already imposed. When the economic situation cries out for bold steps,
government bureaucrats start fumbling with their mini-calculators. There is
little hope for the hard pressed people crushed by mindless and thoughtless
taxation.
The taxation on agricultural incomes announced is just a dim shadow of what
the IMF desires. What has been done is just the fixation of farm tax
targets for provinces; Punjab (Rs. 1.25 billion); Sindh (Rs. 500 million);
NWFP (Rs. 150 million) and Balochistan (Rs. 100 million).
No standard assessment
In its arbitrary incidence, the above tax farming could be worse than the
iniquitous Permanent Settlement bequeathed by Lord Cornwallis in Bengal.
But that was meant to meet the specific needs of the trading and conquering
East India Company at that early stage of the founding of the later day
British Empire.
No standard method of assessment has been prescribed. Every province looks
like following its own vulgarised version of Todar Malls time-tested land
revenue devoid of its essential university. Subject to exemption limits for
legally defined subsistence holdings Punjab intends taxing agricultural
income on the basis of the produce index units (PIU) of land and the other
provinces directly on the basis of the cultivated land areas.
Both the bases result in a gross under-statement. Most big landowners
cultivate a great deal of area that is shown as permanent fallow in land-
use statistics. The PIUs are a very unreliable index of the productive
power of land. They were improvised in the wake of independence with the
limited purpose of allowing evacuees land in some proportion to what they
left behind in India. They bear little relation to the current productive
power of land. The PIU basis suffers from the double error of the
cultivated area statistics as well as of estimate of the productive power
of land.
For extending federal income tax procedures to agriculture, they have first
to be reformed for their application to non- agricultural incomes. The
current vogue is that even when you file your IT or WT return with all the
relevant documents you still receive a notice for filing of some of the
same documents and for appearing before the assessing officer. This is
still followed by a similar notice asking for production of some of the
documents. This process may go on three or four times to be followed by an
assessment order which still ignores to you disadvantage some of the
information provided twice or thrice.
You file a return making a heavy over-payment either on the basis of
incomplete knowledge or mischievous advice of the tax lawyer. The IT
Department is under no obligation to ask you to correct the error. After a
year or two the case is time-barred in any case.
Abundant precaution
As an abundant precaution in such an adversarial setting, understatement of
tax liability involving tax evasion is the only rational behaviour for the
tax payers. In advanced countries often held as role models for honest tax
payment, the assessing officers correct the return even when the correction
favours the assessee and lose no time in mailing the refund cheque.
There are many things needed to make our I.T. Department efficient and
honest. One of them is to cut down the officers strength by half and the
staff strength by three-fourths. Side by side a high order of computer
literacy should be made an essential condition of entry for officers as
well as men and there should be a suitable upgradation of their emoluments.
In the short-run, the most practicable way of taxing agricultural incomes
is to tax at source the marketable surpluses of cash crops to raise the
pre-set amount of tax revenue. Cotton, sugarcane, rice, potato, tobacco,
hybrid maize and tree crops are sold through registered dealers with
adequate documentation and payments through banks. This deduction at source
can be supplemented in stages by assessments based on normal filing of I.T.
and W.T. returns.
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961102
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Rs. devaluation: a disastrous exercise
-------------------------------------------------------------------
By Anil Datta
THE pinch of the most recent massive rupee devaluation by 8.5 per cent has
already begun to be felt-by the teeming, toiling masses, that is, with the
prices of oil being readjusted upwards by 10 per cent, again the second
price increase within a fortnight.
The galloping oil prices rises are sure to further accentuate the
phenomenon of inflation.
An oil price rise is sure to, in turn, give rise to cost-push inflation,
and the phenomenon is becoming so very evident with prices of general items
and items of daily use registering a visible increase. This measure is sure
to bury the masses fathoms deep in the morass of economic hardship. There
is sure to be an increase in the prices of utility services like gas,
power, and transport, as a direct outcome of the second oil price increase
within a fortnight. In fact, there was a countrywide transporters strike
to demand a raise in fares the day this piece was being penned down, a
demand to make up for the oil price hike.
Gold prices have already gone up by Rs. 300 per 10 grams immediately on the
announcement of the decision to devalue. As it is, ghee and cooking oil
prices had registered an increase of Rs. 3 per kilogram as an outcome of
the 3.65 per cent rupee devaluation of September 10. On top of that comes
the latest devaluation, twice as much as that of September. One could well
imagine what grave shape the consumer price structure will now assume.
According to certain market sources, prices of two-wheelers and other
essential household gadgets are likely to go up anywhere between Rs. 500
and Rs. 2,500 in light of the latest 8.5 per cent devaluation. Added to
this is the new fiscal measure like the 2 per cent import service fee and
the increase in with-holding tax at the import stage from 4 per cent to 5
per cent.
All this comes against the backdrop of stationary wages, stationary as
regards volume but dwindling in terms of purchasing power.
This devaluation might benefit about a thousand textile tycoons who are
dreaming of a massive rise in exports, but if at all, the jump will just be
a short-run phenomenon because with the rising costs of utilities like oil,
gas, and power, industrialists and exporters will not be able to maintain
their competitive edge for long. Thus, the prognosis of the textile tycoons
of an increase in exports seems to be more of a dream than a realistic
projection. Just to safeguard the interests of a thousand textile mill
owners, the well-being of 130 million citizens has been jeopardised.
The question that arises, however, is: Could devaluation really be all that
beneficial an exercise. After all, we must not forget that the clientele in
the foreign market, particularly the west, are as quality-conscious as they
are price-conscious. Could devaluation work the desired magic without any
quality control, without the induction of the latest technology?
The prime condition for making devaluation a worthwhile exercise is to
ensure uninterrupted and enhanced production. Production is precisely the
casualty in case of currency devaluation. In fact it is a purely backfiring
exercise as prices of imported raw materials, imported capital equipment,
accessories, and other inputs would go up by around 10 per cent, and in
addition, there would be the massive increase in the costs of utilities.
All this would not only impede production but would also render the prices
of our goods, including textiles, absolutely incompetitive. Among other
things that would skyrocket prices are the 10 per cent oil price hike, 1
per cent tax on income tax with-holding on imports, and a 10 per cent
excise on gas distribution are sure to push up the prices of consumer
goods, imported items including raw material and capital equipment, and
domestic industrial products. This again, in the final analysis, hits the
daily living of the masses who are dependent on these products.
Value-added items
As it is, one of the flaws in our exports policies has been that too little
attention has been accorded the value-added sector. For instance, Pakistan
sells yarn to the various countries at Rs 5 per kilogram. Countries like
Japan and South Korea, turn this yarn into value-added products which
fetches prices to the equivalent of Rs 30 per kilogram. As such, why can we
not utilise this yarn for making value-added products and getting greater
foreign exchange?
The most apt current example one could cite is Bangladesh. Even though not
a cotton grower, Bangladeshs value-added textile exports are selling hot
cakes in the world market. Today Bangladeshs foreign exchange reserves
stand at $3.5 billion whereas ours stand at $586 million.
It must be borne in mind forever that devaluation could only be worthwhile
relatively speakingfor those economies where exports comprise mainly
value-added items or Hi-Tech products.
We are importers of major consumer items like edible oils, capital goods,
and synthetic material. Increase in the costs of import of these items is
sure to enhance the prices of their derivative products hitting none but
the common man. In short, the prices of all items of daily use and daily
living are sure to be affected by the devaluation. Whether or not exports
will go up remains to be seen. It is a gamble which will squeeze only the
man on the street. The well-being of a ninety-five per cent of the nation
has been jeopardised in a gamble that mayor may notbenefit the handful of
exporters.
No match for China
In a recent interview, federal commerce minister Ahmed Mukhtar defended the
earlier rupee devaluation by 3.65 per cent lauding it as highly timely
step. To support his contention, he said that it had become imperative on
account of the devaluation of the Chinese and Indian currencies. True the
currencies of these two countries have been devalued but let us not forget
that China is not just a raw material exporter but one of highly
sophisticated and technologically advanced products, including value-added.
Today, while the US has mitigated her balance of trade deficit with Japan,
the deficit with China stands at $10.8 billion as of August 1996 in Chinas
favour. So, we certainly do not stand to compete with China.
It would have been nice if one of the functionaries could also have dwelt
on the excruciating effects the step would have on the daily living of the
common man through inflation. According to the laws of the free market, a
three per cent devaluation would cause inflation to the tune of about 10
per cent in the market, on account of the multiplier effect.
Besides, devaluation is not the sole panacea for enhancing exports. Pricing
is not the sole criterion when mustering clientele in the foreign market.
Quality control figures very prominently. What figures is the continuity of
the supply line, and with constant work stoppages on account of the law and
order situation and other irritants, whether that aspect can be maintained
by our exporters remains to be seen. What is called for is an aggressive
export drive and publicity involving a plurality of governmental
organisations, including our missions overseas.
Market research is another indispensable aspect. Our exporters have to
carry out surveys in the international market, studying the trends, likes,
dislikes, cultural values , and idiosyncrasies of the clientele in
respective markets and shape an export strategy accordingly. These factors
are no less important than prices.
Perhaps, the biggest gainers from the latest step would be our creditors
like the World Bank and the IMF who shall now receive a greater volume of
interests on our loans, with our external debt liabilities touching the $30
billion mark.
Also standing to gain would be our Western trading partners, notably, the
USA, as we shall have to pay more for the imports of sophisticated imports
like capital equipment and others.
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961107
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KSE 100-share index soars by 78.48 points
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Staff Reporter
KARACHI, Nov 6: The KSE 100-share index on Wednesday soared by a record
78.48 points during the post-Bhutto government ouster session, surpassing
its previous single-session all-time high of 75.86 points established on
Jan 4, 1994 followed by massive short-covering both by the local and
foreign investors.
Before mid-session it was as higher as 108 points, what the dealers called,
an extension of Tuesdays kerb buying euphoria.
Volume figure at 84.295m shares was also the third best figure ever
recorded in a single session, the previous all-time being 111m shares hit
on March 28, 1996 and 113m shares in 1994.
Unlike the Nawaz Sharifs ouster on April 18, 1993 when the index did fall
with him by 38 points, investors reaction to the sacking of Benazir was
quite reverse, apparently endorsing the Presidents action.
But it is too early to pass on any judgement on the snap rally as it could
well prove a psychological boost for the near-term, analysts said and
added only next few post- dissolution sessions will tell what is in store
for investors.
They said corporate announcements coming from leading companies are well
above the market expectations and higher dividend are bound to attract new
buying at the current bottom rates.
Technically speaking, the market is currently in a highly oversold position
and needs a lot of covering purchases to straighten its position but that
is essentially tied to objective political conditions, most dealers
believe.
But the economy is not that buoyant on which snap rallies could feed on,
said a leading dealer.
He said opinions about the future direction of the market is divided
despite agreement with the International Monetary Fund (IMF) as much will
depend on the post-dissolution political scenario.
However, there is a near-consensus among the leading brokerage houses, that
short-term share outlook appeared to be a bit bullish and could well
provide exit outlets for many, notably who are in deep trouble after
having lost substantially in the protracted bear-run.
Analysts said one thing appeared certain that the sailing on the political
front might be smooth and together with new guidelines from the interim set
up, there is a possibility that the market could find a direction for
itself in due course.
Foreign fund buying at current bottom levels was at its peak as is evident
from sharp gains in most of the MNCs, which virtually raced towards their
pre-reaction levels.
Knoll Pharma, Engro Chemicals, Philips, Siemens Pakistan, Shell Pakistan
and Lever Brothers were leading among them, which staged smart recoveries
ranging from Rs 6 to 50 but without finding many willing sellers even at
the rising prices.
They were followed by local leading shares under the lead of PSO, Highnoon
Lab, Javed Omer, Adamjee Insurance, Pakistan Refinery, Mustehkam Cement and
some others, rising by Rs 7 to 16, biggest gain of Rs 20 being in PSO.
All the sectors participated in the market advance, but bulk of the support
remained centred around bank, insurance, cement, energy and chemical
sectors.
Among the investment sectors, ICP Mutual fund, modaraba and leasing shares
also came in for strong buying at the lower levels and finished smartly
recovered.
The interesting feature was that under-valued textile shares also followed
the general price flare-up despite higher lint prices and fears of a short
cotton crop and finished recovered in line with the general upturn.
Massive activities were witnessed in the current favourites, notably Dewan
Salman, Hub-Power, which accounted for more than 20m shares each followed
by PTC vouchers, ICI Pakistan, Dhan Fibre, Lucky Cement, LTV Modaraba,
NDLC, Bank of Punjab and Fauji Fertiliser.
Dividend from Cherat Cement and Merit Packaging at 30 per cent and 25 per
cent cash and 15 per cent bonus shares respectively were said to be on the
higher side of the market expectations and well-received.
There were 296 actives, out of which 262 shares rose, while 16 fell, with
18 holding on to the last levels.
-------------------------------------------------------------------
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961101
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The changing of the guard
-------------------------------------------------------------------
Ardeshir Cowasjee
HIP, hip, hurrah! They have this week changed the Palace Guard. They have
reshuffled the old worn pack of cards. But, wherever in the pack he may be,
top, middle, or bottom, the knave of diamonds remains the knave of
diamonds.
Vassim Jafarey: The man who swiftly answered the summons to Forrun pohonch
jao. Islamabad from Karachi on that October 1993 evening of the day
Benazir was sworn in as prime minister for the second time, has now been
told to Forrun challay jao. The discarded joker in the pack.
Naveed Qamar: A politician reared on sycophancy has thrived on sycophancy.
His decisions have been taken for him by the king and queen of spades.
Acting as finance minister, he remains the Sindh PPP Treasurer and Chairman
of the Privatisation Commission. A Dawn report tells us that at the October
28 cabinet meeting the consensus was that the finance minister should have
a political background. Whose interest will Qamar serve? The peoples or
the partys? Who will now chair the ECC meetings? Public perception has it
that the prime minister will remain the finance minister, that our finances
will continue to be mismanaged. But then, what man of conscience or of
credibility wishing to retain his self-esteem would agree to serve?
Hussain Lawai: Chief executive of a once well-managed bank will now perhaps
guard the interests of his new benefactors.
Mohammed Yaqub: As Governor of the State Bank, he remains as independent
and as strong as he has been. He maintains his status quo as king of his
castle. But the trump suit hovers over him.
Moeen Afzal: Our new finance secretary has an unmuddied slate, he is on no
lists, his peers and juniors speak well of him. Will he have the spine to
tell the prime minister that she must mend her ways, practise and not just
preach austerity and persuade the rest of the pack to follow suit? He has a
rapport with the President which could prove to be most useful.
These men are writing on clean slates and they could, should they so have
the will, instil a form of financial discipline in the management of the
peoples money. They could, as good new boys, commence the accountability
process, working backwards from the immediate present to December 1971.
Should they attempt it the other way around, we will all be dead and buried
before the process reaches 1977.
As our system is structured, we are never sure as to who wields more power
finance minister or Governor of the State Bank. In India, just before
independence, the competent Sir Chintaman Deshmukh was appointed Governor
of the Reserve Bank of India. He ruled the roost, his orders prevailing
over those of the finance minister. He later became finance minister and
took decisions that overrode the views of the Reserve Bank Governor. The
befuddled finance secretary asked Deshmukh, Who is more powerful, Governor
of the Reserve Bank or Finance Minister? Deshmukhs answer: When Deshmukh
is governor, the governors views prevail. When Deshmukh is finance
minister, the minister has the upper hand.
Let us imagine the hypothetical situation in which Naveed Qamar has the
final word and deals the accountability hand. He does not have to wait for
the accountability amendment. A letter written by him to the Governor of
the State Bank might read:
I am not at all happy with the manner in which the finances of the state
are being managed by the heads of the nationalised commercial banks and the
development financial institutions.
I realise that there is a paucity of talent and of backbone. However,
intelligence is not an absolute requirement. An honest diligent cashier can
ensure that funds are not robbed. One does not have to be a genius to mind
ones till. Read what that man Cowasjee wrote last week on how NIT has lost
the peoples money held in trust by its trustees. A disgrace.
I would like to believe he has it wrong, but I feel that he is right.
Should by chance he be wrong, you must repudiate his misstatements.
You, as head monitor, ensure that the prudential Regulations are not
infringed upon or violated. Where were your monitors, regulators, when NIT
chairman and managing director Asadullah Shaikh overstepped his mark and
freely and wilfully did wrong by distributing the peoples money to men and
companies to whom not one paisa should have been disbursed?
Where were they when State Life advanced Rs 100 million to Schon refinery
against nil security?
On the subject of the privatised banks, ABL and MCB: Are you aware that
after privatisation ABL allowed itself to be pressured into giving away
another Rs 100 million to the never-meant-to- rise Schon refinery against
zero collateral?
MCB, I am told, was ordered to lend over Rs 1.6 billion to ARY, the sole
concessionaire of our gold imports, some of it against gold and silver
bullion lying in Dubai. Is this true, is it permitted? What jurisdiction
have our courts over assets lying in a foreign country?
Kindly let me have your report within the week.
I do hope that your discussions with the IMF officials now visiting
Pakistan have not drained you.
New Finance Secretary Moeen Afzal, might also, hypothetically, pen a letter
to new professional chairman and managing director of NIT, Raziur Rahman:
I am informed that you have been interviewed by those who matter in the
prime ministers secretariat and they have approved of your professional
qualifications. My hope is that you will do better than the bureaucrats.
May I impress upon you that as chairman and managing director you are
heading the largest open-ended government-managed mutual fund of our
country which holds in trust billions of rupees belonging to the people.
In order to doubly ensure that not one rupee of any unit holders money is
misspent or squandered, the government has nominated their finest financial
brains and their top bankers in the country to be co-trustees of the trust,
none other than M.B. Abassi (NBP), Shuja-ul-Hasan (HBL), Asadullah Khwaja
(ICP), Mohammed Ali Khoja (PICIC), Hussain Lawai (MCB), Mohammed Munawar
(IDBP), Mohammed Yaqub Surmawalla (PIC), and Hassan Yusuf (UBL)!
Will you please convene a special meeting of your board and convey to the
members, in no uncertain terms, that the law demands that each trustee
shall be liable for any misapplication of money entrusted to his care to
which he has been a party or which happens through or is facilitated by the
neglect of his duty, and that inefficiency, neglect and waste of assets is
measured in terms of misapplication of money.
Also ascertain at this meeting the circumstance and/or the pressure under
which the trustees agreed to disburse Rs 525 million to the Chakwal Cement
Company, and emphasise that their submission has so far sunk the fund by a
capital loss of some Rs 325 million. Were they not aware that this company
does not expect to declare any dividend until 2001?
Would you also report on the circumstances under which the outgoing
managing director disbursed Rs 50 million to the unlisted Schon refinery
against nil security, and what remedial measures the Trust intends taking?
As for NIT, please establish why its very valuable plot of land measuring
4,610 square yards (6-CL/10 Beaumont Road, Karachi) was surreptitiously
sold to Progressive (Pvt) Ltd. Why was the proposed sale not advertised and
why were public bids / offers not invited? Who are the benami directors of
Progressive? Who are the real buyers? This commercial property was sold
last year for Rs 12,000 per square yard at more or less the same price (Rs.
11,826 per square yard) for which it had been bought five years previously.
This was done in a rising market. Why?
The last instalment, 65% of the price, was to be paid in September 1996.
Was this the last act of collection of your predecessor?
The 184th meeting of the Board of Trustees of NIT was held on July 28,
1995. The 185th meeting was not convened until May 26, 1996, ten months
later. Why? Do the trustees not take their responsibilities seriously?
Finally, please calculate, without a fault, the net asset value of your
unit, and update and publicise it each week, as is done by all reputable
international open-ended mutual funds.
I would like to note the individual responses of the above- named banker
trustees to the questions I have raised, and any dissenting notes that may
have been recorded.
Kindly let me have the information requested within fifteen days.
Borrowing from WSC, that master of English prose: Gentle Reader, expect not
even a hypothetical reply.
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961102
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The politics of corruption
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M.B. Naqvi
CORRUPTION is a world-wide phenomenon. But discussing it has become
obsessive in Pakistan, as if nothing else matters. Following massive
propaganda and prodding from high quarters, the government has introduced a
constitutional amendment bill for fighting corruption and punishing the
guilty. The main opposition party, PML(N), has introduced its own anti-
corruption bill in the Parliament.
Does that mean that we in this country are joining the final fight against
corruption in public life a war to end all wars? It is possible to detect
political calculations woven into each bill of how it will serve certain
political purposes of the proposing party.
Who or what will be covered by each measure is a legitimate query and
discovering the possible loopholes in each is also relevant. Both bills can
be faulted for politics that is clever by half, as the President seems to
have done at whose behest the effort was undertaken in the first place. But
more relevant are other facts that do not grab headlines.
Anyone who keeps the anatomy and physiology of corruption in South Asia in
mind knows that corruption is a way of life. People indulge in it as a
matter of course. It is a part of our civilisation and culture. It is not
at all rare. It is true that simple bribes in cash are not really common at
higher levels of governance and public representation, though the same
effect is achieved by subterfuge or sophisticated methods.
These other means are often billed as trade practices and western business
culture has evolved fine instruments from which our officers and
politicians freely benefit, while poor lower grade officials have to make
do with cash bribes. Let us be frank with ourselves: there is no walk of
life that is free from it; not even schools, colleges or hospitals or
courts are free from the scourge of bending rules for favourites the
quintessential corruption.
Commissions, committees and departments have been tried before; special and
sometimes drastic laws have been enacted. But the stately progress of
corruption has never stopped. Rather the contrary. Insofar as the solution
to the problem is concerned, it lies in the home, school and the culture in
which a child grows up. Until mothers, teachers, religious preachers instil
in young minds the necessity of being steadfast and upright under all
circumstances nothing will avail.
In our culture the hallmark of moral behaviour is still sexual chastity
while concepts like intellectual honesty and integrity, often summed up as
strong character, have always been regarded as secondary good qualities
not the most important one. This distinction must be remembered. Like
adultery, all forms and circumstances of corruption require two partners:
one who gives and the other who takes and in the end both feel satisfied.
Until there are no people who are ready to offer gratification, for
whatever purpose, corrupt practices will never disappear. The solution
involves inculcation of a rugged individualism that teaches each person to
do his duty without seeking extra gratification (over and above his pay or
declared profit) or doing favours in anticipation of future gratification.
Until such a culture takes hold, we are stuck with a lot of corruption.
This is however not to say that nobody should do anything about corruption.
>From a larger viewpoint, special measures of the kind now in the two Houses
of Parliament are actually political gimmicks intended to divert public
attention and to mollify it by seeming to engage in a holy war against
corruption. But only a few unfortunate persons whose footprints can still
be found in files and account books will be slightly punished in being
thrown out of an Assembly or debarred from taking part in politics or
censured if he is a bureaucrat. Only in a rare case can a government
servant be dismissed much less going to jail not unless he has wrong
political connections and the whole mighty campaign will end as a nice
political drama. That in some ways will itself be corruption.
Insofar as official action is required for fighting corruption, two or
three pointers are easily available: let the existing laws be actually
enforced. Needless to say it is the same thing as respecting the rule of
law, if only the government and the people are serious about it. As for
adopting specific measures, it is not hard for the Authority to discover
these steps.
The first thing that requires being changed is the executive privilege of
hiding facts or from appearing in courts in person or being held personally
liable for public acts. It should be ended in toto. Similarly all
discretionary powers and secret funds need to be abolished; they are always
an invitation to corruption, at worst, and a bad or fog-creating
administrative practice, at best.
Thirdly, intelligence agencies need particularly to be brought within the
purview of law and supervision by Parliament as well as made accountable
before the judiciary with personal liability for doing what is an offence
against any individual, state or society.
The special privileges and powers to award favours without merit or
assigning reason or by suspending normal rules and regulations that go with
various high offices like quotas for plots, jobs, admissions and so forth.
They need to be dispensed with as is the case in all genuinely democratic
countries. In short the colonial features of an unaccountable
administration should go. Above all let each official, public servant and
elected representative, minister or not, should be personally liable for
any crime committed during the discharge of his duties. Let erring
officials and politicians go to jail if they have committed any offence
punishable under any law without any exception, though not without due
process.
This should reduce corruption finishing it is a far cry. There are no
quick fixes to make corruption disappear overnight.
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961104
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The awam and the Black Label classes
-------------------------------------------------------------------
Ayaz Amir
IN my time I have attended many rallies and political processions and
although I have arrived at the stage where I am tired of them knowing
from despairing experience that in this land of eternal illusions
demonstrations of popular fervour have always prepared the way for more
disillusionment I can say with authority that if Pakistani political
activism reveals anything, it is the gulf between the awam and the
privileged classes.
This distinction is as complete as it is amazing. The faces and forms, and
I daresay the innocent belief and conviction, that are to be found in a
standard political rally are a world apart from the polished cynicism and
lack of faith in anything that are the leading characteristics of the
countrys more gilded drawing rooms. The common people of Pakistan still
believe in their country and its future, such being the scale of their
naivete. Give them a resonant slogan and they will still respond to it. The
drawing room classes believe in nothing except the siren calls of the
acquisitive spirit: how to grab more and how best to give their offspring
an American education. The divide between the various sects or ethnic
communities is not as sharp as that between the two social faces of
Pakistan.
On the afternoon of October 28 I was with the Jamaat procession which,
after battling the police in Aabpara, made its way in triumph to the Jinnah
Avenue, there to stage a brief sit-in before being dispersed by an
onslaught of teargas. I did not have to be a Jamaat fellow-traveller to be
touched by the fervour and passion of that crowd. Whether I agreed with
their views or not, those people at least believed in something, which sets
them apart from the masters and mistresses of our destiny who believe in
nothing.
I am no longer so sure of the soundness of Yeatss famous dichotomy that
the best lack all conviction, while the worst are full of a passionate
intensity. In Pakistan at least those who lack conviction cannot be
counted amongst the best while those who have anything of intensity in them
should not be classified amongst the worst. Better by far the fervour of
the Taliban even if misguided than the fecklessness and lack of purpose of
Pakistans Black Label classes. If Pakistan is ever redeemed, it will be by
the kind of passion whose highest expression is to be found in the poetry
of Iqbal and a glimmering of which is to be seen in the activity of a high-
minded Pakistani mob (the distinction of high-minded being important) when
it takes to the barricades.
It is wrong to suppose that it is merely corruption which is corroding the
innards of this country. Corruption is but the symptom of the lack of soul
which lies behind this mania for acquisition. This is a disease of the
spirit rather than a response to any normal conception of material needs.
Alarming though this may be, it is scarcely surprising.
The common man who has always been the fodder of political agitations is
driven by something larger than himself to brave lathis and teargas. When
he shouts Allah-o-Akbar he really believes that his fate is of no account
when set against the greatness of God. When he invokes the name of Ali his
pulse beats faster, even a person as shorn of belief as I having felt the
power of this invocation. Time and again over the years when I have found
myself in a protesting crowd (preferably non-PPP because the typical jiala
always hovers on the brink of vulgarity) I have had a strange feeling come
over me when I have heard the slogan of Ali being shouted. Which does not
make me a Shia because I was born in a Sunni household but which makes me
think that whatever our clerics might say every Muslim is part Sunni and
part Shia, his psyche and personality responding to the stimulii of the one
or the other creed at different moments in his life.
But to return to what I am trying to say, if the common man is sustained by
his naivete and the vague belief that the spirit of sacrifice can lead to
great things, what are the members of the Pakistani elite, from whence come
the countrys governing class, inspired by? Great ideals do not block their
field of vision. It would be a travesty of the truth to say that a spirit
of public service moves them. The notion that privilege, instead of being a
licence for doing wrong, entails special responsibilities and demands
loyalty to a chivalrous code of conduct is quite foreign to the thinking of
this class.
To make matters worse, among the upper reaches of Pakistani society there
is a complete absence of what can be called good taste. Culture does not
mean simply a devotion to music and the other arts. It also means having a
sense of balance and a respect for moderation in all things. In Pakistan we
have neither the one nor the other: not much time for the arts and no
understanding whatsoever of what a sense of balance means. Hence it is that
even the decadence of the Black Label classes is tasteless and uninspiring.
To be truly decadent requires a Roman imagination. The Berlin of the
twenties that is, before the advent of the Nazis had a decadent quality
which drew to it all the poets and artists of Europe. What poetry can
Pakistani decadence inspire when its most notable feature is the high-class
wedding at which half the government is in attendance? For the kind of
wedding that Principal Secretary Ahmed Sadiq and Petroleum Secretary Capt.
Naseer Ahmed had for their offspring you need not only heaps of money but
also heaps of bad taste. Money in these times, given the opportunities
available to those in positions of authority, is easy to procure; much
harder to attain is tastelessness on this gigantic a scale. Yet to the
credit of the Pakistani elite a veritable army of its representatives has
achieved this happy combination.
Against this colourful backdrop it becomes easier to understand the
phenomenon of Pakistani corruption. An aristocracy or oligarchy is driven
by various ideals, some altruistic and others selfish. But when, as in the
case of our Black Label classes, altruism and such remote notions as a
sense of public service are completely missing from their outlook,
acquisitiveness at all costs and stretching to inordinate and
unreasonable lengths becomes the only thing which lends a meaning to the
exercise of power and privilege. This also makes it easier to understand
the predicament of the Bhutto government which faces not so much a
political or a constitutional crisis as a moral crisis brought on by the
inability to understand the virtues of moderation.
The well-bred man is not someone born with a silver spoon in his mouth but
someone who has an instinctive feeling for the limits of acceptable
behaviour. Had the leading lights of the Bhutto government been armed with
this feeling, they would not have become Greek warriors but they certainly
would have conducted themselves with greater restraint, thus saving
themselves from the predicament which they now face. It is important to
remember in this connection that the wrangle with the Supreme Court or
strained relations with the presidency are just the outward symbols of the
governments troubles. What it is paying for are its moral excesses denoted
by the failure to understand the limits of acceptable behaviour.
Even so, the problem is not simply that of the Benazir- Zardari
dispensation but of the decadence and lack of culture of an entire class.
Even when Ms Bhutto departs finally into the political shades the tasteless
power wedding will still constitute the high-point of Pakistani decadence
and the gulf between the Black Label classes and the awam will still be
wide. Pakistans foremost problem is not to strengthen democracy or to
safeguard the present system but to somehow shame the elite into learning
not honesty, an unattainable ideal but the merits of moderation and
balance. This is no easy task to achieve but unless a beginning is made in
this direction peace will not come to the countrys tormented soul.
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Task before the caretakers
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Sultan Ahmed
A prime task of the caretaker government, and the elected one which may
follow, is to revive, repair and reinvigorate the ailing non-agricultural
economy. It has to put the industry to work with full vigour, and that
should include the 3,000 sick industrial units, and make them work to full
capacity unless they are obsolete units in which case they should be
scrapped.
And when the industry which pays most of the taxes, increases the exports
and provides employment to millions, regain its vigour the service sector
which has been under-performing will also expand and thrive.
To reinvigorate the large scale manufacturing sector which grew by barely
two per cent last year and by only half a per cent the year before, under
the impact of heavy and multiple taxes, soaring cost of production and high
interest rates, the banks and development finance institutions have to be
made more helpful, and the stock exchanges which are showing signs of
regaining vitality should be enabled to become buoyant instead of being
dismissed as satta shops.
The banks and DFIs can regain their vigour if realistic and adequate
efforts are made to recover their loans which now total Rs 113 billion
visibly and far more really. The politicians who borrowed heavily, with or
without collateral, should be made to repay their loans. And their number,
unlike what former Prime Minister Benazir Bhutto said, would be far more
than 3 per cent of the borrowers, if all the politically directed loans and
those given at the behest of the senior officials are taken into account.
And immediately the politically directed loans, as from the National Bank
of Pakistan, should be stopped.
The whole fiscal and monetary picture of the country could change
dramatically if privatisation of the major public sector units already
earmarked is undertaken. The total of the sale proceeds may not be as large
as 25 billion dollars or Rs 1,000 billion as Dr Mahbubul Haq says. But if
it is anything close to that the entire domestic debt of Rs 900 billion
with its very high interest rates could be paid off. And that could bring
down the debt serving cost by Rs 100 billion and produce a budget surplus
instead of the government struggling to achieve a 4 per cent deficit this
year from 5.8 per cent last year.
Many of these exercises have to follow a quick survey of the real state of
the economy in key sectors to know the fact from fiction of the ousted
government. A number of fanciful figures of progress in many sectors and
larger assets than real were presented to the nation from time to time and
even to the IMF and World Bank.
It was because of this that the powerful managing director of IMF Michel
Camadessus is reported to have refused to meet Ms Bhutto when she visited
New York recently and sent instead his deputy Stanley Fisher. He accused
the former P.M. of concealing facts and misleading him time and again. And
since Mr V.A. Jafarey as her adviser on finance repeated the same figures
and facts to IMF chiefs, he also fell from their favour despite their very
long association with each other.
Although the government has changed and a more economy- friendly set-up is
in, economic conditions are unlikely to change quick, except that the stock
exchanges may regain some of their lost vitality as a reaction to the fall
of a government perceived as anti-industry and unfriendly to business,
although commerce Minister Ahmed Muktar is a leading industrialist and two
former presidents of the Federation of Chambers of Commerce and Industry
were nominated as ministers of state for commerce. The caretaker government
will stay by the standby agreement with the IMF to get now the 160 million
dollars receivable in June and September and more of such instalments in
December and March when the agreement expires. The caretaker government
would do nothing to endanger the forthcoming negotiations for a new
Enhanced Structural Adjustment Facility under which it is to get 1.5
billion dollars Pakistan had earlier sought.
It is not so much the hard cash that the government has been seeking from
the IMF that is its over-riding concern as the certificate of sound
financial health which is essential to negotiate with donors, foreign banks
and foreign investors. An example is that following the new understanding
with the IMF under which the latter is to release 160 million dollars, the
World Bank announced it would release the held up 200 million dollars for
the Social Action Programme and Mr Hussain Lawai, the then consultant to
the Finance Ministry, said it would now be easy to get short- term foreign
bank loans for 500 million dollars at reasonable interest. All that makes
it imperative for the caretaker government to be on the right side of IMF
despite the pains it causes to the masses and the short-term deterrent to
economic growth.
For the same reason the caretakers may not come up with any relief for the
salaried or fixed income groups, unlike what care- taker P.M. Moeen Qureshi
did in 1993 when he presented his mini- budget by announcing an increase in
monthly emoluments of Rs 100 for the lower salaried group in the public and
private sectors.
I have been asked by some persons what would happen to the dollar, which
means how high will it go or how low the rupee will sink. There is likely
to be no further devaluation soon of the rupee following the 8.5 per cent
devaluation of October 22 and total devaluation of a high 13.6 per cent
since July 1. Those who have their dollar deposits in banks and those who
may want to deposit more will be watching the economic developments
carefully.
It is a measure of fear of the interested persons that despite the heavy
devaluation of the rupee, which as Dr. Yaqub, Governor of the State Bank of
Pakistan has said was done with the future more in mind than the present,
that the free market rate of the dollar was on Monday Rs 3 higher than the
official rate of Rs 40.12. If the economy improves, business and industry
thrive, the dollars may be drawn out of the banks and used for purchasing
shares or making direct investments.
If industrial activities in the country are to increase savings and
investment should rise. And the efforts of the caretaker government and its
successor administration should be to persuade the large industrial and
commercial depositors of dollars in our banks to withdraw much of them and
use them for investment, for modernisation of their industries and set up
sophisticated new units to accelerate the exports and enhance their value-
added content.
It is imperative the caretakers give greater attention to using this large
fund of about 8 billion dollars or Rs 320 billion for industrialisation of
the country instead of focusing exclusively on foreign investors as the PDF
government did and succeeded largely in the power production sector only.
To achieve that the caretakers have to enter into a lasting compact with
the businessmen, address their basic problems and find viable solutions.
And instead of rejecting the demands of businessmen or making only marginal
concessions, the government has to make reliable and accurate cost studies
in each area so that it is in a position to bargain with businessmen
knowledgeably and efficiently.
To carry conviction with the businessmen and the people as a whole, the
caretakers and their successors have to opt for a small government in place
of the elaborate structure with its vast waste. If in rich US President
Clinton and his Republican rival could campaign promising a small
government with far less cost and much less of red tape, we need such a
government far more in poor Pakistan.
Along with that, a campaign against corruption should be given paramount
importance with a real sense of urgency. If corruption could be eliminated
from public sector banks, DFIs and the taxation services along with
shrinking the size of the government, the official revenues would rise
steadily.
In fact, top priority has to be given to eliminate the rampant corruption
from the taxation departments. This has been given a low priority by the
PDF government despite a loud rhetoric to the contrary. And the government
was posting favourite income tax commissioners and customs collectors and
rewarding the more corrupt among them conspicuously.
Of course, the higher the taxation the lager the evasion and higher the
corruption. But the caretakers may not be able to reduce taxation
immediately lest that upsets the IMF and World Bank. But that certainly can
follow eradication of corruption in the taxation services which can mean
larger revenues.
But the very high interest rate, enhanced through a 3 per cent rise in the
bank rate to 20 per cent which could raise commercial lending rates to 25
to 28 per cent, must now be cut down. High interest rates have not helped
the economy for long and have certainly crippled industrial growth and
retarded repayment of bank loans.
If Dr Yaqub is right that peak interest rates are helpful to economic
growth then the whole world is wrong as it pursues vigorously a low
interest rate policy to accelerate economic growth. It is one thing to have
high interest rates for a short time along with other measures to fight
inflation, and quite another to make it a permanent feature while the
government takes a whole series of fiscal and monetary steps which
aggravate inflation and add to the miseries of the poor and low income
groups.
We are living in a rather new world with its increasingly global economy.
The new economic themes are: higher productivity, sustained export
competitiveness and increasing value added exports.
===================================================================
961102
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Yet another record by Wasim Akram
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Mohammad Shoaib Ahmed
Pakistans skipper and leading fast bowler, Wasim Akram became the first
bowler to reach 300-wicket landmark in one-day Internationals on October
30, 1996 against Zimbabwe when he trapped their opener Dave Houghton at
Nawab Bugti Stadium, Quetta. He achieved the feat on the 4th ball of his
first over in the first one-day International against Zimbabwe in the three
match series.
Wasim Akram made his debut in one-day International cricket on November 23,
1984, against New Zealand in Faisalabad. His first wicket, however, came in
his next one-dayer in Melbourne on February 24, 1985, when he bowled the
Aussie opener Kepler Weasels and finished with 5 for 21 in 8.1 overs.
Of the 32 bowlers who have taken 100 wickets or more in one-day
International cricket, there are eight West Indians, seven Pakistanis, four
Australians, five New Zealanders, five Indians, two Englishmen and a
solitary South African. The most wickets taken from Sri Lanka are 85 by
fast-medium bowler Ravi Ratnayke.
Twelve of the bowlers have also scored 1,000 runs or more as batsmen, thus
accomplishing the all-rounders double also. They are Ian Botham, Sir
Richard Hadlee, Imran Khan, Kapil Dev, Mudassar Nazar, Simon ODonnell, Viv
Richards, Ravi Shastri, Steve Waugh, Wasim Akram, Carl Hooper and Manoj
Prabhakar.
The best strike-rate among these 32 bowlers has been achieved by Pakistans
ace pace bowler Waqar Younis who bowled 29.86 deliveries to get each one of
his 229 wickets. Waqar also has the best strike-rate as far as the number
of wickets taken per match is concerned. He has played 137 one-day
Internationals to claim his 229 wickets, giving him an average of 1.67 per
match.
The West Indians giant pace bowler Joel Big Bird Garner remains the most
economical bowler ever in one-day International cricket, conceding a mere
3.1 runs per over in his 98-match career which fetched him 146 wickets.
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961102
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New chapter in our sports history
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A. Majid Khan
IN Pakistans male dominated field of sports, the 11-nation invitational
Muslim Womens Games, a dress rehearsal for next years Islamic Womens
Games, has added a new chapter. The five-day event held under the auspices
of the recently-formed Womens Sports Board in Islamabad, was the first
assembly of around 320 girl competitors drawn from Turkmenistan,
Kazakhstan, Kyrghystan, Uzbekistan, Tajikistan, Azerbaijan, Syria,
Malaysia, Bangladesh and Bosnia, besides host Pakistan.
Never before in Pakistans 45-years-old history any such games were ever
held. Although Iran could not take part in these sports, the initiative of
instituting the games exclusively for Muslim women was taken in 1993.
Pakistan not only participated in the Tehran Soldiery Games but Prime
Minister Benazir Bhutto readily accepted the Iranian proposal for hosting
the 1997 Games when she paid a visit to that country.
The main objective of holding the Islamic Womens Games is to create
awareness among the young generation of females and provide an outlet for
their physical and mental strength. So far women had no say in any national
provincial and divisional sports bodies of the country, though it formed
more than half the population of the country.
The International Olympic Committee did well to make it mandatory that all
the National Olympic organisations must ensure their participation in the
organisation of sports activities. So the Pakistan Olympic Association,
which is an affiliated unit of the IOC, has been forced to follow suit and
steps had been taken to induct women in the organisation.
Pakistan as such is facing dearth of womens technical knowledge of the
games which is the basic requirement for running an international event.
Fortunately a nucleus is available in the shape of womens directorates of
physical education in the university and colleges of all the four
provinces.
Next year in October at least 25 Islamic countries would be competing in
the biggest-ever assembly of women from Islamic countries. Iran could not
compete in the Islamabad invitational games and sent its observers but, as
a founder of the Islamic womens games, it would be among the participants
in next years games.
The Islamabad invitational women games was dominated by Pakistan which
bagged the highest number of nine gold medals, 10 silver in athletics,
badminton, table tennis and basketball.
Uzbekistan was placed second on the medals table with four gold, one silver
and one bronze. Bangladesh secured third position with other countries
finishing in the following order: 4. Bosnia, 5. Kyrghistan, 6. Tajikistan,
7. Kazakhstan 8. Azerbaijan, 9. Turkmenistan, 10. Malaysia, 11. Syria.
Pakistan excelled in athletics but gave the worst performance in hockey,
which is our national game, when it suffered a crushing defeat by 11 goals
against Kazakhstan. No wonder we finished at the bottom as Uzbekistan won
the hockey gold with Kazakhstan getting the silver and Azerbaijan, the
bronze.
The womens sports in the country required a lot of improvement which in
turn demands dedication and commitment on the part of those who are
responsible for their promotion.
The challenge is formidable, more so when there are so many self-imposed
social barriers. It needs a change of attitude and adjustment to the new
age.
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961102
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The age factor and the boards stance
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Lateef Jafri
Cricket enthusiasts are baffled by the board officialdoms refusal to
accept the age of Hasan Raza at the start of second Test against Zimbabwe
in Faisalabad when he entered the record books as the youngest Test
debutante.
Some days before the Faisalabad Test, perhaps after his sound fifty at the
Sahiwal three-dayer, it was being assumed that Raza was set to become the
youngest Test cricketer. He missed the chance at Sheikhupura but with the
talent that he had he was certain to break into Pakistans Test team. That
chance came on Oct 24, 1996, at the industrial town of Faisalabad when he
was given the Test cap and he overtook the record of Mushtaq Mohammad, now
cricket manager and coach, standing in the latters name for the last 37
years as the junior-most to make the maiden Test appearance at the age of
15 years and 124 days.
The statisticians were agreed that Raza was 14 years and 227 days and had
set the record of being the youngest in his first Test match. In fact the
schoolboy expanded the list of the Pakistanis in this record to 11 in a
band of 18, selected and made uptodate by all authentic cricket books,
especially the most reliable Wisden almanac.
Some three days after Hasan Razas debut in an inter-country match and when
he was being acclaimed as the holder of a unique record came cricket
boards statement doubting the authenticity of his age. The boards Chief
Executive, Majid Khan, issued a photocopy of an X-ray of the wrist, taken
at Shaukat Khanum Memorial Hospital about four months back. Perhaps this
was an afterthought and the disclaimer was the result of an atrocious
comment made by a BBC stringer, Geoff Dean, covering the series for the
British radio and electronic media as also the Daily Telegraph, London. The
cricket scribes and statisticians were naturally surprised by the boards
about-turn but they would like to know how is it that the Englishman became
an authority on the age of a Pakistani cricketer. Certainly the English
writers are usually in the habit of showing the Pakistani team and
cricketers in a poor light and disparaging their achievements. The question
one would like to ask Majid Khan as why he was swayed by the BBC reporters
viewpoint and was forced to follow his line. The clarification from the
board could have come some days earlier when Hasan Raza was about to enter
the Test scene as the youngest player. The selectors were highly impressed
by the sound technique of the schoolboy batsman and they had given high
marks to his fifty against Zimbabwe in the side game at Sahiwal. He was not
in the Sheikhupura Test but he could not have been kept away after he had
slammed a confident 96 in the Quaid Trophy match. His chance came in
Faisalabad.
Cricket enthusiasts would like to know the purpose behind Majid Khans
statement. Was it to belittle the achievement of a Pakistani youth and
prove that everything had been far from true in the sphere of the countrys
cricket and the Englishmens accusations against the national players,
including their allegations of ball tampering against the famed Ws, have to
be upheld. Secondly, how is it that Hasan Raza was included in the under-15
team to appear in the World Challenge Cup in London. The team was selected
in June during the early phase of the ongoing tenure of Majid Khan. He had
taken over from Arif Ali Abbasi as the new Chief Executive on May 21 this
year. This means that in June Hasan Raza was being accepted as an under-15
colt. Or the board deliberately kept the ages of the junior players a well-
guarded secret. Why the PCB did not exclude the over-aged cricketers from
the U-15 side is a mystery? Supposing the pendulum of fortunes in the
junior World Cup final would have swung towards Pakistan and they, not
India, would have clinched the trophy, the latter may have raised a hue and
cry and wanted Pakistan to be scratched from the contest. Still many
countries may demand that Pakistan be debarred from the summer competition
for the junior cup. Not only the age of Hasan Raza but many other members
of the outfit becomes questionable. The boards chief administrator has
opened a Pandoras at a time when a foreign team is visiting the country.
Dr. Mohammad Ali Shah, one of top orthopaedic surgeons of the country, has
ruled out that wrist X-rays can be wholly correct. The wrist method
determines, not confirms, the age and it may not give an absolutely
accurate report, according to Dr Shah. The radiological result may be one
year more or a year less, according to the surgeon, a winner of the
Presidents Pride of Performance award for accomplishments in the field of
orthopaedics. If the orthopaedic expert expresses doubt over the wrist
method of ascertaining the age then why cant the birth and school
certificates be relied upon as the authentic age which puts Hasan Raza as
the youngest Test entrant at the age of 14 years and 227 days.
If at all the board takes the view that Raza is above 15 perhaps he still
remains the junior-most since Mushtaq Mohammad was 15 years and 124 days on
his Test debut against the West Indies on March 26, 1959. But if one goes
by the BBC stringers views and the boards clarification can Mushtaqs
age, being accepted for the last 37 years by all the statistical books,
including Wisden, be taken as accurate. Was the age of Khalid Hasan, the
first youngest Test debutante of Pakistan and manager of junior World Cup
team, really 16 years and 352 days in 1954 when the late Hafeez Kardar gave
him a chance to appear against England at Nottingham. Or was J.E.D. Sealy
of the West Indies, the junior-most before Khalid of 17 years and 122 days
while given a Test cap at Bridgetown against England on Jan 11, 1930. There
will be no end to this debate for the age of Ian Craig of Australia,
Garfield Sobers, Hanif Mohammad and Khalid Wazir will become controversial.
Was the youngest Englishman Brian close, really of 18 years and 149 days
when he made his maiden appearance in a Test against New Zealand in 1949.
One hopes that Majid Khan revises his viewpoint before it is too late and
many records and performances of the Pakistani cricketers are questioned by
the international media and the foreign statisticians.
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961102
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Pakistans victory: Zimbabwe series clinched
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Ilyas Beg
LAHORE, Nov 1: Lusty hitting by the prodigious Shahid Afridi (66 on 37
balls) and excellent team-work helped Pakistan register a facile nine-
wicket victory over the luckless Zimbabwe side in the second one-day
international match at the Qadhafi Stadium on Friday. With that Pakistan
wrapped up the three-match series 2-0. An unchanged Pakistan team will play
the third and last one-day match of the series against Zimbabwe at
Peshawar. However, that will be of academic interest now because Pakistan
has already won the Test series as well.
Pakistan won half the battle when the Zimbabwe team was restricted to a
meagre total of 195 in 49.1 overs after Captain Alistair Campbell won the
toss and decided to bat first on a batting strip. Saqlain Mushtaq (3 for
46), Shahid Nazir (2 for 31), debutante paceman Abdul Razzaq (2 for 29) and
Captain Wasim Akram (1 for 26) never allowed the Zimbabwe innings to
prosper at any stage of the game. Excellent work in the field by the
Pakistanis, which also resulted in two smart run outs and two stumpings by
the agile wicketkeeper Moin Khan, bogged down the Zimbabwe batting.
The day again belonged to Shahid Afridi, who was deservingly declared
Wills Man-of-the-Match by a jury of experts. Conceded that the Pakistan
team was not under the pressure of a big total, but the way Shahid Afridi,
in his new role of an opener, hit almost all the Zimbabwe bowlers to all
parts of the ground. He hit four big sixes besides eight exquisitely-timed
boundaries to blunt the Zimbabwe bowling. He pulled paceman Mbangwa over
square-leg and mid-wicket boundaries and thereafter straight over the
bowlers head to show glimpses of his unmatchable knock of 100 on 37
deliveries in Nairobi, which this correspondent had the good fortune to
watch. Shahid Afridi electrified the twenty-thousand strong holiday crowd
at the Qadhafi Stadium. No wonder then, if some spectators decided to leave
the ground when Shahid Afridi was clean bowled by the attack bowler John
Rennie after making 66 runs in just 49 minutes. The tall and young Shahid
Afridi went back, having made up his mind to hit Rennie out of the ground
without judging the line of the yorker and lost his stumps.
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Hasib hits PCB on policies
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By Our Sports Reporter
KARACHI, Nov 1: Former Chairman of Selectors, Hasib Ahsan, on Friday
expressed his displeasure over the double standards of the Pakistan Cricket
Board (PCB) officials.
Ahsan said the cricket administrators were not treating the players and
officials with the same yardstick.
There seems to be different rules for different set of people, Ahsan
said, adding: Rashid Latif has been issued show cause notice for his
attack on the Chief Selector while Nusrat Azeem denies being issued a
letter of explanation after he too lashed out at the selectors.
Ahsan stated that the PCB officials had claimed that they would seek
explanation from Nusrat Azeem for breaking the Code of Conduct.
But now it seems that they havent issued him anything.
With Majid Khan heading the PCB, it appears very strange that he has not
taken any notice of indiscipline, Ahsan said.
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961107
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Playing positive aimed at: Mushtaq
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Viren Varma
SHARJAH, Nov 6: Ian Chappell calls them immensely watchable rabble prone to
plummeting to abysmal depths and rising to stratospheric heights - all in a
matter of time. And this aura of uncertainty has made Pakistan one of the
most exciting teams in the world.
They play cricket with passion rather than pragmatism, relying on the
theory of attack is the best defence. And if attack is their strongest
point, it is, perhaps, also the weakest link.
Yes, our team is a bit hot and-cold stuff. One can expect anything on a
day, but then playing positive, entertaining cricket is in our blood and we
would like to retain the natural flair, Mushtaq Mohammed, manager of the
Pakistan cricket team, said today.
Brimming with confidence after their recent victory over Zimbabwe at home
Pakistan is determined to return home with a title victory under their
belt. Thats what we are here for, Mushtaq said.
Ever since Wasim Akram has taken over the reins of the team, the outfit
has developed it own style, based on positive cricket. he is the role model
for the team and always lead from the front.
Why we are rated as one the best teams in the world is primarily because
we have many vibrant batsmen like Saeed Anwar, Ejaz Ahmed and Salim Malik
who are a great sight when in full flow.
How about the new batting sensation Shahid Afridi, who blasted a 37-ball
ton in Kenya recently?
He is included in the team as a bowler, not as batsman. You can say he is
primarily a bowler who can also bat a bit. Well, it sounds a bit strange,
but them Mushtaq knows better what is talking about.
About the inclusion of new faces in the team - five players have come to
Sharjah for the first time - Mushtaq said: The idea is to build the team
for the future. But this does not mean we are trying to sacrifice on
experience. Our team is an ideal blend of youth and experience. Pakistan
has not won a tournament for a long, but if the confidence of Mushtaq is an
indication this time they are hell-bent to write a new script.
Mushtaq does feel that fielding is one area where Pakistan need to work
harder. We are working seriously to improve our out cricket and due stress
is also given on the fitness level of the players, said Mushtaq.
PAKISTAN: Wasim Akram (captain), Aamir Sohail, Saeed Anwar, Ejaz Ahmed,
Salim Malik, Hasan Raza, Moin Khan, Azam Khan, Shahid Afridi, Waqar Younis,
Mushtaq Ahmed, Abdul Razzak, Saqlain mushtaq and Shahid Nazeer.Dawn = KT
Service.
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961107
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Case against Zeeshan weak: Hendricks
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Sports Reporter
KARACHI, Nov 6: Former West Indies Test star, manager and selector, Jackie
Hendricks believes that Zeeshan Pervaizs rape case was a set-up by the 36-
year-old mother of three.
I think that it is a set-up because no mother in the world would send her
two kids, 11 years old and 13 years old, to a swimming pool at 11:30 in the
night when there were no life guards and lights.
I think that the woman had shown her consent and desire towards the boy
(Zeeshan Pervaiz) but something got terribly wrong which resulted in the
woman making a hue and cry, observed Hendricks who was here as the ICC
Match Referee during the just-concluded Zimbabwe and Pakistan series.
Hendricks, who is an official of the Jamaican cricket board, was of the
view that the two might not even have had sexual intercourse. Probably,
the kids returned immediately after they saw the swimming pool completely
under dark only to see their mother with someone (Zeeshan Pervaiz) in an
objectionable position.
I feel terribly sorry for the boy. I think that it was just a wrong
selection by the youngster, Hendricks, who now runs a sports business
imported from Sialkot in Jamaica, stated.
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