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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 8 August 1996 Issue : 02/32 -------------------------------------------------------------------


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

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

CONTENTS

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NATIONAL NEWS

Assef sees bleak future for CTBT US hopes accord will pressure Pakistan India seeks Israeli help to upgrade armaments Opposition to launch agitation on Aug 10 New ministers allocated portfolios Transporters call off strike after agreement Proceedings against Sharif concerns stayed Blast accused makes confessions publicly How committed are we to environmental management? ---------------------------------

BUSINESS & ECONOMY

Devaluation offers no solution South Asia gets only 1pc from global tourist trade The export potential of mangoes Telecard demands Rs2.2bn compensation Heavy Mechanical Complex to be privatised IMF proposes rules for international markets Commercial energy demand may go up by 6.7pc in 10 years PTC shares push index higher by 7.91 points ---------------------------------------

EDITORIALS & FEATURES

Khar, khar, kharaan Ardeshir Cowasjee Terrorism (contd.) Omar Kureishi What's going on? Mazdak The power of mud Benazir Bhutto -----------

SPORTS

Pakistan's performance not yet upto the mark Lord's show impresses injured England Mushtaq to take over cricket post after England tour Pakistan cricket system may collapse, fears Majid Allan lamb shattered over libel case loss =================================================================== SWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

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NATIONAL NEWS

960804 ------------------------------------------------------------------- Assef sees bleak future for CTBT ------------------------------------------------------------------- Staff Reporter LAHORE, Aug 3: Foreign Minister Sardar Assef Ahmad Ali has said he sees bleak future for the Comprehensive Test Ban Treaty because of the Indian obduracy and the Western countries emphasis on nuclear non-proliferation instead of nuclear disarmament. However, he said, Pakistan would not block the treaty. But at the same time made it clear that Islamabad would not sign the CTBT or undertake any unilateral obligation or make any commitment unless India did so. Responding to a question at a news conference he said: I see a very bleak future for the treaty (CTBT) because of two reasons: the Indian attitude and the Western countries desire to keep their arms in a state-of-art position while preventing other countries from doing so. He said Pakistan differed with the Indian view that there should be a definite time-frame for nuclear disarmament, but it was certainly in favour of nuclear disarmament on an equitable basis. He said it was regrettable that the Western countries talked of nuclear non-proliferation but did not speak of nuclear disarmament. Some countries, the minister pointed out, wanted to have a provision for non-detectable tests like cold tests or zero yield tests but Pakistan was opposed to such an approach. For Pakistan, he said, test ban means a complete test ban  and no more tests. The minister said: In recent weeks, there has been a lot of speculation about Pakistans position on the CTBT. Allegations ranging from a softening of Pakistans position to a sell-out on the nuclear programme have been made against the government. Such speculations and allegations are not only unfounded but mischievous. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960808 ------------------------------------------------------------------- US hopes accord will pressure Pakistan ------------------------------------------------------------------- Staff Correspondent WASHINGTON, Aug 7: US officials are confident that a new agreement on CTBT between China and US will doubtless have an effect on Pakistan and Iran, and would place substantial political pressure on them to accept the treaty within a few days. The Washington Post quoted a senior US official, who did not want to be named, as hailing the new agreement as the piece we needed to solidify the five declared nuclear powers behind the text. He said the agreement would present a united front that makes the outlying nations quite isolated. It will doubtless have an effect on Pakistan and probably on Iran, which have each been reluctant to accept the text. The newspaper quoted officials predicting that India, an undeclared nuclear power that has said it opposes the draft treaty, will exercise its veto and block the treatys transfer from the UN Conference on Disarmament in Geneva to the world bodys General Assembly meeting in New York next month. But several officials said the United States and China had also reached an agreement in Geneva that they are prepared to join the remaining three nuclear powers and many other nations in presenting the text to the New York meeting anyway, using a legal stratagem Washington and its allies have devised in the last week to side-step Indias veto. The senior US official explained that Washington believes there is no legal barrier to a group of states presenting the treaty to the UN meeting without a specific endorsement by the Conference on Disarmament, which has managed the negotiations and operates by consensus. The Post reported that negotiators from the US and China had cleared away a key obstacle to achieving a comprehensive, world-wide ban on nuclear testing Tuesday, leaving only the objections of India as a potential hindrance to reaching a global accord this year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960807 ------------------------------------------------------------------- India seeks Israeli help to upgrade armaments ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Aug 6: India has begun detailed negotiations with Israel on a broad-based, multi-year upgrade package for its air, land and sea forces that would break Indias traditional reliance on Russian hardware and technology, reports said. They said the deals could generate more than $400 million for the Israeli industry which could sell technologies and sub- systems to improve combat capabilities of Russian-designed MiG-21 and British-French Sepecat Jaguar fighters, T-72 tanks, infantry vehicles and surface ships. The authoritative Defense News reported in its latest issue that in addition to hardware-specific technologies and components, India was seeking Israeli assistance in upgrading aircraft production facilities operated by Bangalore-based Hindustan Aeronautics. In exchange, India has offered composite technologies derived from its Light Combat Aircraft development programme and metallurgical expertise, Indian sources were quoted as saying. Among the Israeli defence items under negotiation are an air combat manoeuvring instrumentation range for the Indian Air Forces fleet of MiG- 27M and Mirage 2000H aircraft as well as avionics and radar for the MiG-21 upgrade effort. Moreover, Indian sources here said the Indian air force has asked the Yehud, Israel-based Tamam Division of Israel Aircraft Industries Ltd to install new integrated tactical inertial navigation and Global Positioning Systems in the MiG-27M and Mirage 2000H aircraft. Yet another air warfare project involves electronic counter- measure systems for the MiG-21s and Sepecat Jaguars. India wants to upgrade at least 120 MiG-21s and 80 Jaguars, and an Indian air force source said the avionics and electronic warfare upgrades would be required regardless of the status of Indias ongoing MiG-21 upgrade programme with Russia. After years of negotiation, Russia and India signed in April a MiG-21 upgrade deal that focuses on new engines and spare parts for the fleet. In the land warfare technology, India is discussing with Elbit Ltd, Haifa, Israel, for the purchase of thermal imaging sights and gun control systems for up to 600 T-72 tanks. Other Israeli firms also have been approached for ammunition and other sub-systems intended to bolster the Russian-designed tanks capabilities. For naval capabilities, the Indian navy is close to concluding a contract with Haifa-based Rafael for 12 surface-to-air Barak missiles for the Indian warship INS Delhi, under construction at state-owned Bombay-based Mazagon Dock. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960807 ------------------------------------------------------------------- Opposition to launch agitation on Aug 10 ------------------------------------------------------------------- Staff Reporter LAHORE, Aug 6: Fourteen opposition parties at a meeting decided to launch a movement to oust the government and as a first step gave a call for a country-wide strike on Aug 10. Long march, sits-in, civil disobedience and resignations from assemblies are the important ingredients of what has been billed as Save Pakistan movement, and all these options will be exercised according to objective conditions, PML secretary-general Senator Sartaj Aziz told reporters after the meeting. PML president Mian Nawaz Sharif presided over the meeting. The participants also decided to hold joint rallies at provincial capitals and the first rally would be held in Karachi on Aug 14 and the second in Quetta on Aug 19. Heads of the opposition parties would meet again on Aug 13 in Islamabad to take further decisions. A white paper would be published to expose the irregularities committed by the government in various fields. The opposition parties would have close liaison with traders, labourers, transporters, lawyers and people belonging to other walks of life and special conventions would be held to build up pressure against the government. ANP leader Azam Hoti told reporters that resignations from assemblies would also be tendered at an appropriate time. The parties represented at the meeting were: PML, the Jamaat-i-Islami, the MQM, the Awami National Party, both factions of the JUP, the JUI(S), TJP, JWP, PML (Jamali group), United National Alliance, Qaumi Mahaz-i-Azadi, Markazi Jamiat Ahle Hadith, Jamaat Ahle Hadith and the Pakistan National party. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960802 ------------------------------------------------------------------- New ministers allocated portfolios ------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 1: Prime Minister Benazir Bhutto allocated portfolios to the newly inducted federal ministers and ministers of state. Two important ministries, Communication and Health, have still been left without a minister. It is expected that these would be filled when the cabinet would be reshuffled by the prime minister. Former NWFP chief minister Arbab Jehangir has been made Federal Minister for Narcotics Control, which was earlier held by Interior Minister Naseerullah Babar. The latter will now be looking after the Interior Ministry and the Federal Investigation Agency. Chaudhry Abdul Sattar of Pakistan Muslim League (Junejo) has been made Federal Minister for Industries which was earlier held by his other party colleague Brig. Asghar along with Production. The latter will now be Federal Minister for Production only. The PML turn-coat Haji Mohammad Nawaz Khokhar will look after Ministry of Science and Technology as full minister, an office once held by Hamid Nasir Chattha. Rao Sikander Iqbal, who was Minister for Food and Agriculture in the previous PPP government, has been made Federal Minister for Sports and Tourism. Former Law Minister Senator Iqbal Haider would continue to look after the Ministry of Human Rights as full minister. He was already looking after this ministry even before being inducted in the federal cabinet. Prime ministers spouse Asif Ali Zardari, whose induction in the cabinet has surprised many, would be Federal Minister for Investment. Earlier there were reports that he would also look after Environment Division. Privatisation Commission Chairman Naveed Qamar would now be Minister for Privatisation. Senator Jehangir Bader, who was Federal Minister for Petroleum and Natural Resources in the previous PPP government has been made Minister of Political and Religious Affairs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960802 ------------------------------------------------------------------- Transporters call off strike after agreement ------------------------------------------------------------------- Dawn Report ISLAMABAD, Aug 1: A countrywide public transport strike which had crippled the life for the last three days was called off on Thursday when the government agreed to withdraw capital value tax (CVT), and reduced 40 per cent income tax on the transporters. The decision to call off the strike was made in a seven-hour-long meeting between the government team and the members of the Supreme Council of All Pakistan Public Transport (SCAPPT). It was announced that the government had withdrawn its decision of levying CVT on public transport, reduced 40 per cent of the income tax, 10 years old trucks would be exempted from taxes, increase of Rs200 for vehicle fitness certificate and Rs400 as permit fees would not be charged. The transporters were protesting 15 per cent CVT on the first registration of the vehicle, 100 per cent increase in the professional tax, 300 times increase in income tax, 400 times in vehicle fitness certificate fees, 18 per cent sales tax on the spare parts and three per cent increase in lubricants. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960806 ------------------------------------------------------------------- Proceedings against Sharif concerns stayed ------------------------------------------------------------------- Staff Reporter LAHORE, Aug 5: The Lahore High Court asked three Sharif family concerns to move for appropriate proceedings against banking tribunal decrees despite the stay ordered by it against any final decision and suspended further proceedings in pending cases. Ramzan Sugar, Hamza Board and Brothers Steel submitted that they, with other Ittefaq Group concerns being sued by nationalised banks, had challenged the transfer of recovery suits filed by Chairman Ashiq Husain of Tribunal No 1 to the tribunals headed by Rana Aish Bahadur and Aslam Nagi. An LHC division bench admitted the petition for hearing and directed the tribunals not to pass any final order or decree on the suits transferred to them. Arguing their applications before a division bench comprising Chief Justice Khalilur Rehman Khan and Justice Mohammad Aqil Mirza on Monday, Barrister Ashtar Ausaf Ali stated that the operation of the decrees passed in violation of the LHC order be stayed or the aggrieved concerns be allowed to file appeals without depositing the decreed amounts. The bench asked the counsel to initiate appropriate proceedings through contempt petitions or by challenging the decrees and seeking interim relief against them for having been passed in contravention of a High Court direction as alleged. As for the seven suits still pending before the tribunals, in which too the High Court has barred final orders, the division bench directed that all proceedings be stayed in them pending the disposal of the transfer petition. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960805 ------------------------------------------------------------------- Blast accused makes confessions publicly ------------------------------------------------------------------- Staff Reporter LAHORE, Aug 4: Ishaq, an alleged terrorist in the police custody, who was produced before reporters, confessed having carried out bomb blasts at 10 different places in the Punjab. My next target was to blow up Shalimar Express, the 24 year old alleged terrorist from a border area village Lakhoki, said. He looked to be totally relaxed before a crowd of reporters. According to the police, the accused, a science graduate from the Government Science College, Wahdat Road, Lahore was taken to India by the two smugglers of the same village where he came in contact with some RAW officials. About eight Kilograms of explosive material, 12 timers and seven detonators which were recovered from the accused were also produced before newsmen. The 10 bomb blasts, which according to police were carried out by the accused include blasts at Dyal Singh College, Saddar Bazaar Medical Store, F C College, Azam Cloth Market, Shaukat Khanum Memorial Hospital, Cantonment post office and Airport, Faisalabad Railway Station, train blast at Lala Musa and a blast at Venus Cinema, Okara. Police did not produce Shamsher Ali Shah, the other accused, before newsmen saying that he has been taken to Kasur to assist in a raid to arrest another suspect. Lahore SSP Chaudhry Sajjad Ahmad told reporters that Shamsher Ali Shah was a hardened criminal who had not confessed his involvement even in a single incident. The police has recovered two kilograms of explosive material from the house of Shamsher Ali Shah but he still pleads to have been innocent, he said. He said that police had rounded up five other people who were believed to have links with the RAW. The SSP said in India the accused was trained by the RAW at Taragarh training camp near Delhi where he was taught to prepare a device from explosive material, detonator and timer. He said that two people, Habib and Shahzad Masih, who were hired by the accused for explosions at Shaukat Khanum Memorial Hospital and Lahore Airport were blown up in the incidents. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960803 ------------------------------------------------------------------- How committed are we to environmental management? ------------------------------------------------------------------- Humayun Akhtar MUCH is being said about environmental protection in the country but hardly any practical steps have been taken so far to protect the environment. Buses, rickshaws, cars and trucks emitting smoke on the roads of our cities are a common sight. Tall chimneys of factories are adding daily to an already polluted atmosphere. Effluent stream and waste disposal are doing damage to the sea and around our coast, specially Karachi Port. Our industrialists should realise the hazards to the environment and demonstrate in practical terms, their commitment to providing the resources that are required to control the environmental effects of their industrys activities. These environmental effects vary according to the nature of the organisation and its activities. What is required to save our environment. In the first instance a standard, that is a specification for an environmental management system, which is to be established. This would enable an organisation to evaluate and define a policy, target and objectives to improve environmental performance. International standard The British Standard 7750, is currently the leading internationally adopted standard. It is being used as the main source of the clauses for the International Environmental Standard, ISO 1400. The standard is also compatible with quality management system standards in the ISO 9000 series. The Standard specifies requirements for development, implementation and maintenance of environmental management systems aimed at ensuring compliance with stated environmental policy and objectives. The standard does not itself state specific environmental criteria but requires organisations to formulate policies and objectives taking into account information about significant environmental effects. The Standard is applicable to any organisation that wishes to assure itself of its compliance with a stated environmental policy, and demonstrate such compliance to others. All the elements specified in the standard are intended to be incorporated into any environmental management system, but the extent of the application of any one element will depend on such factors as the environmental policy of the organisation, the nature of its activities and the conditions in which it operates. Not withstanding with the British Standard it would be necessary to evolve an Environmental Management System (EMS). An (EMS) is defined as the organisational structure, responsibilities, practices and resources for implementing and maintaining environmental management. The specifications for EMS provide a framework structure for companies to develop an environmental policy and monitor and evaluate their progress in meeting the objectives of that policy. The EMS allows the company to examine its environmental impact in the light of the economic and technical status of the business and to incorporate the need for compliance with environmental legislation and the need to be aware of the views of interested parties with regard to management practices. Most EMS are based on the following: They are generic. They can be applied to any organisation, whether manufacturing, service or commercial. They are proactive. Their aim is the prevention of environmental harm through the anticipation of environmental risks. They are developmental. They seek to improve performance. They are voluntary but their rules are mandatory once the standard is applied. They are systems-based and supported by documented procedures. The core of a standard should include: Commitment: The EMS require the senior management of the company to make a commitment to continually improve its environmental performance which is promoted throughout the organisation. Having made this commitment, senior management allocates resources to implement and maintain the management system. Preparatory review: This provides a preliminary evaluation of the organisations current status with regard to its environmental activities and effects. The organisation gathers together and analyses all its existing data with regard to environmental effects, relevant legislation, emergency response, procedures, and existing management systems for data. The organisation can identify areas for improvement, which will then form the basis of the policy, objectives and targets. Policy: The environmental policy is a statement of the organisations intention to improve its environmental performance. It is formed on the basis of the result of the preparatory review. Organisation and personnel: This element of the standard describes the requirements for allocating authorities and responsibilities within the environmental management system. It also requires the company to analyse the need for further training of staff at all levels in order to achieve targets and objectives arising from the environmental policy. Environmental effects evaluation: The company must develop systematic methodology for identifying, examining and evaluating its core of the environmental management system. Much of the work of establishing this methodology can be carried out at the preparatory review stage. However, the procedures established must allow for changes and re-evaluation of effects over time. Objectives, targets and management programme: As a result of preparatory review and effects analysis, specific objectives and targets are defined to create continual improvement in environmental performance. Once these are agreed upon, it is necessary to create a programme to implement these aims. Management manual and documentation: This is the key information source regarding the operation of the management system. It contains directions to all other procedures and work instructions. It may be in paper document or electronic form. Operational control: Where a process or activity can significantly affect the environment, it must be carried out under controlled conditions. This includes environmental sampling and monitoring activities and may require calibrated instruments to record measurements. The corrective action to be taken when non-conformance against the standard accrue is also covered by this section of the standard, as is the control of those companies supplying the organisation with goods and services. Records: All data relating to the operation of the system must be kept in a record system which provides documentary evidence of the efficient running of the system. The records also indicate the progress towards achievement of the targets and objectives. Environmental management audits: Documented procedures must exist for carrying out internal audits of the system. Auditors must be trained to look at the system objectively and report non-conformance to relevant people so that corrective action can be instigated. The audits provide information to the organisations management to allow them to revise and improve both the system and the organisations environmental performance. Environmental management reviews: The entire system should be reviewed at appropriate intervals to determine whether it is meeting requirements and to ensure that continual improvement in environmental performance is taking place. Organisations that have successfully implemented EMS need to demonstrate and communicate this fact to interested parties. This is best done through independent, third party certification. The pressure on business resulting from threats to the sustainability of the natural and human environment are ever-increasing. This is reflected in the rapid growth in the number of national environmental statutes, international treaties and conventions and the use of taxation and other fiscal measures to try to reduce pollution and environmental harm. Finally, consumers and industrial customers are demanding information about the environmental effects of products and prefer purchasing those that are environmentally friendly. Benefits of certification to ISO 14000/BS 7750: Certification provides the best evidence to all interested parties that the organisation is committed to continual improvement of its environmental performance. Other rewards Reduced waste disposal costs. Improved customer relations and image. Improved relationship with regulatory authorities. Increased access to investment funding. Reduced risk of liability for clean-up. Reduced energy cost. Ability to correct potential problems before they cause environmental harm. Demonstration of environmental due diligence. Organisations which have a proactive, as opposed to reactive, environmental management system can achieve strategic and sustainable competitive advantage. ******************************************************************* DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************* INTERNET PROFESSIONALS WANTED * MS in computer science, with two years experience, or, BE with four years experience in the installation and management of an ISP. * Must be able to select equipment, configure, and troubleshoot TCP/IP networks independently. 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BUSINESS & ECONOMY

960803 ------------------------------------------------------------------- Devaluation offers no solution ------------------------------------------------------------------- M.B. Naqvi WITHIN a month a third devaluation of eight paisa in a Dollar has taken place and this has happened 15 times since October 28, 1995s last devaluation. The speed at which the rupees value is being cut down suggests that the authorities are desperate. It looks as if there is some kind of hard chase that the government is engaged in. The chase could only be what its advertised aim is: boosting exports. However, one thing is now certain: for all the desperate measures that the government has adopted and frequently devalues, these are either not adequate or are not the right steps for boosting exports. The exports are simply not responding to these substantial stimuli being offered. There is therefore an understandable panic in authorities about the devaluation failing to do its allotted duty of increasing exports. Why is it not doing so? A very, very simple explanation is: the conditions in which exports rise do not obtain. Devaluation is generally a help - in certain circumstances, but not always, as Islamabad authorities seem to believe. It is commonly believed that devaluation is helpful in increasing exports in most cases. Many governments and the IMF believe that this is the case. The point, however, is that it is not an absolute truth in all cases. The fact of the matter now is that Pakistan has proved to be one of the economies where devaluation has failed to act as an adequate stimulant for exports. We need to investigate why? The preceding explanation is not meant to suggest that Pakistan authorities should never devalue. What is now so obvious, and has all along been so clear - though the government is failing to see the point - that such speedy recourse to repeated devaluation does not produce cost-effective results. It just goes on doing the same thing again and again. Why? Is there, perhaps a target that the government is trying to achieve within a given time frame? The rumours, until the other day, were that the government would ensure that the par value of the Rupee comes down to Rupees 40 to a Dollar. This is a circumstance that is hard to prove, no doubt. But the governments disavowals are simply not enough to stop the rumours being believed when the official actions seems to confirm the suspicion. Sheer desperation At any rate, this frequent recourse to devaluation in order to boost exports anyhow and the price of doing so does not seem to matter also tells a story: the government is desperate; its previous efforts to boost exports through reducing the value of the Rupee have not succeeded, certainly not to the desired or even expected levels. Therefore it is likely that this attempt too will neither succeed nor will it be the last. Therefore, many would be exporters are simply likely to decide to wait for a further dose of devaluation when the rupee might shrink further in value. The remedy or the medicine is serving not only to prolong the disease but may now be aggravating it. Let us see why devaluation is not working. The reason is many-faceted. To begin with, the country is already suffering from high inflation rates for a long time. A nine or eight per cent rate of price rises is not regarded as anything to worry about when these rates graduate into double digits, they begin to give grudging recognition to inflation. It is necessary that people should not be misled by official figures of inflation rates. These figures are tailored to official PR purposes rather than to disclose the real, much less the hidden, inflationary pressures. The latter in fact is a much higher range of rates. Even if this is not so the accumulated inflationary pressures should now be treated as having crossed a certain point when ordinary responses to the usual stimuli become distorted. Inflation anyhow sets up its own distortions of expectations and responses. Which is what has happened. The first manifestation of it is already risible in a most troubling form. Futile devaluation At least 15 devaluations of the rupee in a short time, one of them substantial, have simply failed to lift the export earnings to any appreciable notch higher. The goal of $10 billion export earnings in a year has been around for the last four or five years. Pakistan, however, has never achieved it. This year the new target is again $10 billion. In all these previous four or five years it hardly went beyond $8 billion and in 1995-96 the export earnings are said to be $88.6 billion, the highest ever but at a very high price. That is the first terrible symptom of a serious malady. The remedy of this disease is apparently unknown to all economy managers. The second consequence of this facet is that the devaluation instead of reducing inflation - the normal expectation from any devaluation - is in fact increasing the inflation. The same amount of imports will now require more Rupees. It means more money to the government in taxes no doubt. But also more money will be needed for the selling the same goods and more Rupee sent abroad to the foreign exporters per unit. This increased inflation reflects on competitiveness of the exports, on the one hand, and on the general prices level of goods that use imported martial or other imported imputes, on the other. That general price rise, i.e. the inflation, also increases the cost of production. Once the cost of production increases, the general price level of manufactured goods inside the country would also increase. That is a direct disincentive to exports and reduces the competitiveness of the Pakistani exports. The deleterious effects of devaluation now do not stop at just this cost- push inflation. It goes far beyond that. A general increase in the price of domestically produced goods would do many things: it would intensify smuggling in of foreign goods. That would deprive the government of indirect taxes and indeed some other taxes too, including the direct tax on the income that the smuggler simply cannot show. That would increase the budget deficit, the bugbear for economy managers. There would be other costs. Once smugglers take over and domestic production declines, the bears take the stock market over and the economy begins to stagnate. That stagnation slows down all economic activities, beginning with the new investments. Which is a sure recipe for reducing there venues of the government. Which would, in turn, increase its borrowings and the budget deficit, which in their turn would intensify many other troubles including strengthening the inflationary spiral and making exports even more difficult. Later every negative factor becomes self-reinforcing and begins to reinforce every other undesirable economic trend. This is an economic mayhem in which Pakistan economy has been caught. All oft-tried remedies are now failing to produce desired response from the economy. One can find many explanations, beginning with the way industrialisation was promoted in the first place. Our entrepreneurial class is a misnomer. It is used to spoon-feeding. As soon as the spoon- feeding is reduced, it cries out in pain. The work ethic in the country has deteriorated as a result; standards of quality are not being adhered to; the economy managers have gone soft and they have not been able to resist even the undue demands for more concessions in the shape of new incentives like duty drawbacks, various tax reliefs and holidays and so forth. The governments have always taken the soft option. Corruption Then there is the rampant corruption. Corruption in the government services and indeed in the government itself - if the copious reports in the press are anything to go by - have produced their mirror image in the business dealings. Racketeering, tax evasion and bribe-giving has increased, the whole economic ambience has changed. It makes Pakistan economy very special and particular. Soon the general rules and economic laws may begin to seem as if they have no effect on this economy. Anyhow the point to be made, vis-a-vis export promotion, is that the idea of promoting exports while the economy is stagnating or unemployment is rising is simply unrealistic. No country in the world can increase exports significantly if its economy is also not expanding robustly. The economy in which exports rise is one that keeps inflation down and makes its government reasonably solvent which does not run heavy fiscal deficits. The question of questions is: now that devaluation has proved to be a device that no longer produces the expected response from the economy, have we found a solution of the general economic malaise that has been afflicting Pakistan economy? At any rate, how do we do that? The first requirement is to diagnose the economic malaise and identify the causes that have produced the sickness and then question of finding the remedies will follow. It is not being suggested that Pakistan economy is being afflicted with some absolutely new or unheard of economic disease. What it is paying for are known causes. They were the soft options taken for far too long. They can be corrected if the government is prepared to take tough decisions and is ready to adopt the harder options. That will be for starters. Later of course, options might not remain as hard if a good beginning can be made. No doubt a very tough question will have to be tackled: where to begin and what remedial steps are to be taken and, not only that, a correct sequence of corrective measures is no less vital. We have to be quite sure in our minds as to the sequence of the steps. What one has discussed so far is why exports have not risen or may be they will not unless economy management improves. It is necessary to lay down a few indicators or markers as to when exports growth will begin to rise. The first is, of course, the macro-economic stability with low inflation rate. Needless to say that the situation is actually desperate. Desperate measures are needed for beginning the corrective processes; the time for taking soft options has gone. It is not the purpose here to give a blueprint of what corrective action needs to be taken. All a columnist can do is to remind that even the classical economists have specified a very strict policy regime that was mandated to be adopted and implemented along with any devaluation. Devaluation cannot be conceived in isolation. Devaluation has always been treated as a desperate measure, the recourse to which should be the last and it is to be accompanied with many other correctives, particularly a drastic reduction in the budget deficit and various other deficits. Unless these measures are adopted together, devaluation has no meaning. It cannot do the job that is intended if those other accompanying measures are not taken. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960805 ------------------------------------------------------------------- South Asia gets only 1pc from global tourist trade ------------------------------------------------------------------- Shaukat Ali LAHORE, Aug 4: South Asia gets only one per cent of the international tourist trade whose total receipts in 1995 stood at $373 billion. Adjoining Far East Asia is doing a little better by getting around 19 per cent of the trade. This was stated by the Tourism Council Chairman of the SAARC Chamber of Commerce and Industry, Mr Padma Jyoti of Nepal during a seminar on the Current Status of the Tourism Industry in SAARC countries here. Tourism, Mr Jyoti said, was one of the fast growing industries of the world but in South Asia its development was stagnant. The SAARC countries were competing with each other in gaining tourism business, although, Mr Jyoti said this was not a healthy sign as these countries should instead be co-operating with each other in promoting tourism throughout the region. He said it was in this background that the SAARC Tourism Council was formed early this year with the aim of enhancing tourism among the member states. The Federation of Pakistan Chambers of Commerce and Industry, President, Ilyas Bilour said that the historical importance of the region and its natural beauty held out immense potential for the growth of tourism in this part of the world. Asking the SAARC leadership to arrange publication of a travel guide and setting up an information cell for the convenience of tourists, Mr Bilour emphasised the need for promoting aviation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960803 ------------------------------------------------------------------- The export potential of mangoes ------------------------------------------------------------------- M.M. Nazri MANGO is said to have been growing for the last 6,000 years in the South Asian region and is now cultivated in many other countries like The Philippines, Indonesia, Burma, Thailand, Malayada and Sri Lanka. It has been established that Malaysia was the first country in the world which obtained the material from the Sub-Continent. The Sulu Archipelago and Mindanao in the Philippines were the first to have grown mango some time between 1400-1450 A.D. but the Island of Luzon and other places received this fruit probably from Thailand and the Dutch East Indies (now Indonesia) The distribution of mango throughout the world started with trade between Asia and Europe. It is said that the Portuguese were the first in the early part of the 17th century who carried mango plants and seeds from Goa to East Africa and thence to West Africa and Brazil. In 1768 Captain Cook found an abundance of mango in Rio-de-Janeiro. It is estimated that at present more than 10,000 acres of land are covered by mango in Florida. Its production is mainly centred around Palm Beach and Dade county. In Egypt, mango production took place for the first time in 1925. Due to the improvement in transportation it has now been introduced in may tropical and sub-tropical countries of the world. Mango is widely grown throughout tropical and sub-topical regions. Though mainly consumed fresh, various products of mango can be prepared like pickle, chutney, juices, pulp, canned mango slices in syrup, and slices in brine. Other products are mango jam, nectar, flour, and dried slices etc. Pakistan, after India, is one of the important producers of mango and its products, followed by South Africa, Jamaica, China, Taiwan, Malaysia, Sri Lanka, Kenya and Australia etc. Mangoes are a highly perishable commodity. Most varieties are harvested only when mature. The aroma and taste typical of a mango depends in large measure, on the stage of maturity at the time of harvesting and the method employed for picking, care shown in handling and during transport; the method employed and temperature maintained for ripening. Quality enhances marketing value. They should, therefore, be properly graded, packaged and transported. A few years back, this scribe had conducted experiments, which show that the skin of mangoes (Sindhri and Langra of Sindh) coated with an Aqueous Fungicidal Emulsion extend their storage life at room temperature to 14 days. The coating reduces wastage, delays ripening and lowers the respirations rate. Untreated, they spoil within seven days. At present, Pakistan produces more than 850,000 tons of mango but unfortunately it is unable to export even two per cent of its production. World trade in mango products is estimated to be not more 150,000 tons, dominated mainly by four countries, India, Jamaica, South Africa, and Pakistan. Other exporting countries are Mexico. Sri Lanka, USA, China, and Cuba. The UK is presently the main importer of mango products. Jamaica is the worlds second most important exporter of mango slices in brine and mango slices in syrup, India, South Africa and Pakistan are the main suppliers of mango slices in Syrup, besides, Sri Lanka, Jamaica, Mexico, Cuba, and China. The possibilities of developing standard canned products from the mango fruit have been receiving the attention of the Industry and research laboratories in Pakistan. The Republic of South Africa is the main source of supply at present, followed by India, Tanzania, the West Indies, and China. No data is available about the supply of canned mangoes from Pakistan. There is a demand of the commodity in other countries as well, but to a limited extent. There are two principal types of packs sold in the UK market, a high quality desert type of fruit which is obtained from India and a somewhat inferior quality smaller African fruit which comes chiefly from the Republic of South Africa, and Tanzania. Indian canned mangoes are produced mainly for exports from desert varieties of fruit, such as Alphonse and the Dusehri and the canned products generally have a very sound flavour and texture so that certain brands produced by established canners have acquired a good reputation as regards quality and can command premium precise with buyers in the UK. Mangoes may be canned as slices, cubes, and dice. the suitable varieties for canning are Alphonse, Dusheri, langra, Baganpali, Fuzli, and Chaunsa. Mango pulp There is a good demand for mango pulp, and juice in every country, because it is a valuable source of vitamins and nutrition. The consumption of soft drinks is rapidly going up not only in the Middle East and African countries but also in the USA and other European countries. Mango pulp is so far by-product of canned mango slices Industry in Pakistan. Certain superior varieties of mangoes without fibre are canned. it is possible to utilise the pulp of our local fibrous variety of mangoes which are available abundantly in-season in different regions of the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960805 ------------------------------------------------------------------- Telecard demands Rs2.2bn compensation ------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 4: The Telecard cellular phone company has asked the government to pay Rs2.2 billion as compensation for the losses it suffered due to the ban on its operations in Karachi for the last 13 months. Ruling party senator, Aitazaz Ahsan, who is also the legal counsel of Telecard, has served a legal notice to the effect on the government under articles 18, 23 and 24 of the Constitution. Article 18 guarantees freedom of doing business and articles 23 and 24 ensure the right to own property. A similar notice is likely to be served on the government by another cellular phone company, Paktel, which too has made considerable investment in Karachi, a source told Dawn. If the ban was imposed in the public interest then the consequential losses should also be borne by the whole nation, said Javed Feroze, an executive of Telecard. He said the company had suggested that the ban be partially lifted. We are ready to keep our operations closed in the volatile areas of the city, he said. But there was no justification for the ban on paycard phones at the Karachi airport. No security risk was involved in the operation of paycard phones as these could be easily monitored, he claimed. Meanwhile, strong signals are emanating from the ministry of interior that the government may lift the ban on Aug 14. The government is keeping it secret as the announcement will be made by the prime minister herself, a source at the ministry said. The withdrawal of ban will be projected as a gift for the people of Karachi and as symbolising the success of the government in restoring peace in the metropolis. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960806 ------------------------------------------------------------------- Heavy Mechanical Complex to be privatised ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Aug 5: The Cabinet Committee on Privatisation (CCOP) approved a plan for the privatisation of Heavy Mechanical Complex and three other huge engineering units, besides shortlisting six US companies for the final bidding for the Jamshoro thermal power station. The CCOP which met under the chairmanship of Minister of State for Finance Makhdoom Shahabuddin, allowed the Privatisation Commission to initiate a process for appointing a financial adviser for the privatisation of Heavy Mechanical Complex, Taxila (HMC); the Heavy Electrical Complex (HEC), the PEACO and the Kot Lakpat Engineering Works. The CCOP also reviewed a compensation package to be offered to the employees of HMC and other units, based on a formula of 1 plus 2 on voluntary separation of service (VSS). There were 5000 workers in the HMC alone, a source said. The engineering units would be privatised in different phases. In the first phase, the Commission would offer 26 per cent strategic shares along with the management control of the units, he added. Earlier, six US companies, including CMS Consortium, AES Consortium, Southern Electric, Edison Mission Energy, Energy Initiative Inc. and NRG Energy, were shortlisted for the final bidding for the 880MW Jamshoro thermal power station, situated near Hyderabad. Three companies, British Energy of the United Kingdom and ElectroGen and Continental Energy of the US could not qualify for the final bidding. The Jamshoro thermal power station has total assets worth Rs15 billion (430 million US dollars) and is equipped with steam turbines made in Japan and China. It was commissioned in 1990. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960806 ------------------------------------------------------------------- IMF proposes rules for international markets ------------------------------------------------------------------- Muhammad Ilyas ISLAMABAD, Aug 5: The International Monetary Fund has proposed the establishment of an international convention to check the rising tide of money laundering by criminals and tax evaders whose annual earnings, from their criminal activities, may be as high as $500 billion or 2 per cent of the global GDP. International money laundering is an obstacle to the IMFs task of maintaining an effectively operating international monetary system and, therefore, states a report in July 29 issue of IMF Survey, the IMF will continue to promote vigorously the containment of money laundering activities within the context of its broader responsibilities and its resource constraints. Non-adherence by any country to the standards, to be established under the proposed convention, might entail punitive action and denial of benefits of participation in the international financial market, according to Working Papers prepared by the fund officials Vito Tanxi and Peter J.Quirk which are now being considered by the IMF. Facilitated by the globalisation of the world economy and diminution of restrictions on capital movements, these activities include, in particular, the production and distribution of illegal drugs, as well as theft and embezzlement (including that by corrupt dictators, politicians and high government officials?), insider trading, traffic in nuclear materials, usury, and prostitution. The magnitude of the sums involved and the extent of the criminal activities that generate this income, although difficult to quantify, have implications for both the domestic and the international allocation of resources and macroeconomic stability, the IMF cautioned. With a variety of financial institutions including banks, brokers and dealers in security, as well as unconventional and parallel financial markets serving as intermediaries, the concentration of vast sums of money in laundering operations has generated progressively more sophisticated attempts to launder the assets. The much larger volume of legitimate capital flowing relatively freely through the worlds markets has allowed money of questionable origin to spill unobtrusively into this huge stream. Studies carried out so far suggest that the money laundering may be sufficiently widespread to exert an independent impact on the macroeconomy. According to available empirical evidence, it has negatively affected growth in industrial countries. Since money launderers generally do not look for the highest rate of return but for the place or investment that most easily allows the recycling of their money, these movements may well be in directions opposite to those that would be expected on the basis of economic fundamentals. Money may therefore, move from countries with good economic policies and activities with higher rates of return to countries with poorer policies and activities with lower rates of return. Thus, because of this practice the worlds capital tends to be invested less optimally than in the absence of such activities. As a consequence of such counterintuitive capital movements, policymakers may be confused about the policies to be pursued and may respond inappropriately, remarks Tanzi. Pertinently for countries like Pakistan saddled with smuggling and other criminal activities, at the national level large financial flows related to money laundering could influence variables such as exchange rates and interest rates. On the international level, financial difficulties originating in one centre can easily spread to others, thus transforming a national problem into a systemic one. The IMF study, however, cautioned against a recourse to foreign exchange controls and stressed that instead of setting back the clock on economic and financial reforms, governments should find ways and devote resources to implementing effective anti-money laundering measures ahead of the accelerating pace of financial market development. Although domestic money laundering can often be fought at the national level, an effective solution to the international problem is only possible at the international level, it has been stressed in the IMF Working Papers. International money laundering is based on the exploitation by sophisticated financial operators, of differences in financial and banking regulations across countries and jurisdictions. One solution is for the international community to establish a set of rules that form the basis for full participation by any country in the international financial market. This market, it has been suggested, should become an exclusive club with benefits and obligations for those wishing to belong. By establishing minimum standards of statistical, banking, prudential, and financial rules that would be binding on all countries, the Convention would drastically reduce the differences in domestic regulations that encourage and, to some extent, make possible international money laundering. Referring to tax evasion as one of the underlying forms of criminality, the report recalls that the IMF has been involved closely in efforts to help its members undertake economic stabilisation programmes to improve their tax collection capability. There is no conflict between the macroeconomic purposes of monitoring for tax evasion and for money laundering, since both operations focus on identifying individuals and economic entities and their revenues. The IMF, states the IMF Survey, intends to examine the implications of money laundering, emphasising the following areas: *In countries where an analysis of money laundering is particularly important for understanding the behaviour of the macroeconomy (for example, in countries where drugs or other illegal exports are known to be large or where weakness in the fiscal regime encourages money laundering); * In the context of international capital market developments; and * In the design of IMF-supported economic programmes and IMF technical assistance, particularly when money laundering appears to be affecting macroeconomic performance. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960803 ------------------------------------------------------------------- Commercial energy demand may go up by 6.7pc in 10 years ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, Aug 2: Pakistans commercial energy demand is estimated to increase at an annual average rate of 6.7 per cent over the next 10 years, according to an official study. The study is based on a regression analysis of past consumption trends and relationships, and assumes the implementation of an aggressive programme of energy conservation and efficiency. Consumption of commercial energy has increased at an annual average rate of 6.6 per cent from 11.1 million ton oil equivalent (TOE) to 21.1 million TOE in the last 10 years. The share of commercial energy consumption in the following sectors was: 38.9 per cent industrial; 33.0 per cent transport; 18.5 per cent residential; 3.9 per cent agriculture; 3.8 per cent other government entities and; 2.9 per cent commercial In order to meet the projected demand, the supply of domestic energy resources is forecast to increase in absolute terms, although their share in total energy supply is expected to decrease from 68 per cent to about 62 per cent. Within this, hydroelectricity supply could increase only when a consensus is reached on Kalabagh Dam and the required resources are mobilised. However, despite the assumption that Ghazi Barotha Hydro Project would be implemented during the period, the share of hydroelectricity in total energy supply would decline from the present level of 15.3 per cent to 12.2 per cent. The share of the largely imported oil and petroleum products is expected to rise from the present level of 31.7 per cent to 44.1 per cent of total energy supply. This share could be reduced by substantially expanding the supply of gas either through development of new gas fields, and matching investments in the pipeline infrastructure, or gas imports by pipeline. In the absence of such an increase in supply, the share of gas may decline from 37.7 per cent to as little as 24. 2 per cent. Under this assumption, the share of imported petroleum products in total energy supply would increase from its current level of 31.7 per cent to 53.3 per cent, to substitute for the use of natural gas in thermal power generation, and in the industrial sector. Pakistan has substantial gas reserves, which have not been adequately exploited. Proven recoverable reserves of gas are estimated to be as large as 22.8 trillion cubic feet(TCF), including 1.8 TCF of associated gas reserves. Of this 9.6 TCF were discovered during the past six years, mainly through the new fields at Qadirpur(3.9 TCF) and Kandanwari(1 TCF). Over the same period, gas production has also increased from about 1.0 billion cubic feet per day(BCFD) to 1.6 BCFD. Despite the recent discoveries, gas exploration has proceeded at a slower rate of development than the resources warrant, partly due to the generally limited interest by the oil industry in gas exploration. The hydropower potential is estimated at about 27,000MW under average hydrological conditions. Of this so far, only about 4,825MW (18 per cent) has been developed or committed. A large number of medium and large sized projects like the Kalabagh(3,600MW), Ghazi Barotha(1,400MW) and Basha(3,300MW) have been proposed and studied to varying levels of details. In oil sub-sector, current estimates of remaining recoverable reserves amount to about 27.3 million tons as against the original estimated recoverable reserves of 64.5 million tons. Pakistans major oil fields (Dhulian, Balkassar and Meyal) have largely been exploited, with domestic oil production having increased from 39,300 barrels of oil per day in 1986 to about 60,000 BOPD, resulting in a reserves to production ratio of only nine years. Domestic proven reserves of coal and lignite are estimated at about 734 million tons, of which 432 million tons are recoverable. The production is, however, only 3.3 million tons of which about 46,700 have been used for supplying about 44 GWH of power generation. Given the poor quality of domestic coal, and in order to increase its utilisation in power generation, WAPDA has commissioned the development of the Lakhra project, based on the fluidized bed combustion technology comprising three units of 50MW each. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960808 ------------------------------------------------------------------- PTC shares push index higher by 7.91 points ------------------------------------------------------------------- Staff Reporter KARACHI, Aug 7: Stocks extended the overnight rally on Wednesday as the strength of the PTC shares spilled over to other counters, enabling the index to recover an other 7.91 points. The KSE 100-share index was, therefore, quoted further higher at 1,515.83, showing that it might not breach the 1,500-point barrier at least for the near-term after the listing of PTCL as a public limited company and its formidable weightage in it. But the volume was about a half of the average daily figure at 14m shares as the bargain-hunting in the PTC shares was not that aggressive as it has been during the last several months. Dealers said investors are taking into account the post-listing possible scenario of trading in the PTC shares before making fresh commitments as was reflected by a light business of 6.500 million shares, although it maintained a its upward drive. Whether or not the volumes will be meagre is hard to predict at this stage but investors might take some more days to fully adjust themselves to trading in PTCL shares, dealers said. They said the pause could well be reflective of the fact that analysts are divided over the impact of the massive PTCL share base totalling over 5 bn shares. It was in this background that an interim dividend at the rate of 17.5 per cent by ICI Pakistan for the year ending Dec 31, 1996 was received with an optimism despite the fact that the management has announced that it may not be possible to recommend any further dividend on the enhanced paid-up share capital by virtue of right issue of 325 per cent announced by the management some time back to finance its Port Qasim PTA Plant. However, for the first time after several weeks, gainers managed to force a modest edge over the losers as most of the blue chip shares came in for active short-covering at the lower levels. Big gainers were led by Pakistan Oilfields, Mari Gas, Fauji Fertiliser and Dadabhoy Insurance, which posted gains ranging from Rs 2 to 5. They were followed by Jahangir Siddiqui & Co, Century Insurance, National Refinery, PSO, Shell Pakistan, Pak-Suzuki Motors and Brooke Bond, rising by one rupee to Rs 1.50. Barring sharp fresh decline in Allawasaya Textiles, and Dewan Mushtaq Textiles, which suffered fall ranging from Rs 4 to 9 on renewed selling, losses elsewhere fractional and reflected lack of support rather large selling. However, Alico, Citicorp, 12th ICP, Pak Elektron, Philips, Telecard, Rafhan and Shezan International also fell by one rupee and so did Nestle Milkpak and United Distributors. The most active list was topped by PTC, up 45 paisa on 6.500m, Hub-Power, easy 55 paisa on 2.786m, ICI Pakistan, up 70 paisa 0.870m and FFC-Jordan Fertiliser, firm 30 paisa on 0.466m shares. Other actively traded shares were led by Fauji Fertiliser, sharply higher by Rs 3.75 on 0.362m, Dewan Salman, lower 20 paisa on 0.277m, Cherat Cement, up one rupee on 0.123m, and Engro Chemicals, lower 25 paisa on 0.103m shares. Trading volume suffered a sharp contraction at 14.377m shares from the overnights 31.385m shares owing to relatively slack demand in pivotals. There were 359 actives, which came in for trading, out of which 144 shares showed gains, while 124 fell, with 91 holding on to the last levels. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. Annual Subscription Rates : Latin America & Caribbean US$ 93 Rs. 2,700 North America & Australasia US$ 93 Rs. 2,700 Africa, East Asia Europe & UK US$ 63 Rs. 1,824 Middle East, Indian Sub-Continent & CAS US$ 63 Rs. 1,824 Please send the following information : Payments (payable to Herald) can be by crossed cheque (for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). 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EDITORIALS & FEATURES

960802 ------------------------------------------------------------------- Khar, khar, kharaan ------------------------------------------------------------------- Ardeshir Cowasjee WHEN a little girl who has played with your children and waded in the pool in your garden returns to visit you as Dr Mahanaz Ispahani (Harvard, Fletcher School of Law and International Relations), now a deputy director of the New York-based Ford Foundation, it means that time has passed and you reflect upon how it has been wasted. Instead of taking rearguard action all along the way, had we been led well and wisely we could have done better. Her visit was preceded by a blurb:  South Asian Dialogues on Regional Peace and Security: The Path Ahead. The Joint Centre for Asia-Pacific Studies of York University and [the] University of Toronto aim to take a comprehensive review of non-official dialogues in South Asia to date, which is subsequently to be published. The review will take into account representative public opinion through talks with policy makers, scholars, journalists, academia, business and industry and anyone interested on (sic.) regional security issues in all its (sic.) dimensions. This endeavour is being co-sponsored by the Ford Foundation... Objectives: The non-official, informal dialogues aims (sic.) to take stock of past developments and consider suggestions on future lines of action, in the light of the changing realities. Economic liberalisation is altering South Asias status and connections in its region  Indias new role as a dialogue partner of ASEAN, Pakistans role as a sectoral partner of ASEAN, and the possibility of Indias membership in the ASEAN Regional Forum are some of the new realities. The review will focus on formal governmental processes and national decision-making in the light of opportunities and needs, and suggest forward-looking thoughts on the dialogue process. The critical review aims at soliciting reactions in the region on the value, effectiveness and future of non-governmental and Track-2 programmes. It hopes also to expand contacts in other parts of Asia and the Asia- Pacific [rim?]. It will explore available channels for international exchange, involving religious, educational, social and athletic and other forms of non-governmental associations alongside the official channels of communication. The focus on the core issue of security will consider the wide array of the domestic and transnational issues that affect the prospects of inter- state violence. These factors are environmental, resource management, demographic patterns, human rights and governance issues, drug trafficking, terrorism and the like... This makes it clear that whereas the Indians can now growl and hunt with the ASEAN Tigers, we, if and when asked, can merely watch them go by. The Ford Foundation is now in the process of finally winding up its operations in Pakistan. Mahanaz came with Dr Paul Evans of Canada, Director of the Joint Centre for Asia-Pacific Studies, the Oxford-educated Dr Gowher Rizvi of Bangladesh, and Amera Saeed of Pakistan, a co-ordinator and Senior Researcher of the Institute of regional Studies, Islamabad. As for the blurb, my first reaction was to ask myself how anyone could possibly think up all that nonsense and then actually put it down on paper. Henry Ford (whose hard earned money at Dearborn had seeded his philanthropic Foundation and whose assets at one time peaked $ 4 billion), Mahnazs grandfather Mirza Abol Hassan Ispahani, the good old straight- shooting Sardar Binyamin Gorgezh, and I would have simply said: We want to come and talk. We would like to re-align our sights. The questions they asked, and my answers: Where is Pakistan going? Down. How fast? Very fast. Why? Thieves and brigands are ruling our destiny. Will the economy improve? Why should it. When will there be peace? Which leader of ours is working towards having it? When will there be prosperity? How can we prosper without peace? They knew well, but they still asked my opinion as to how much of what they give actually arrives where it is supposed to arrive. Barely a fraction, I confirmed. They were told that all those who are wasting Henry Fords and the other donors money by channelling it down the government way through government- run programmes can safely be accused of being accessories to a crime. The donors would do far better to directly give their money to people such as Edhi, Akhter Hameed Khan, the missionaries, and such known persons of honest purpose. As for peace in the subcontinent, it cannot be achieved unless both sides decide to shift Kashmir onto a back burner. We neither have the strength nor the ability to grab and hold it. All we have done and are doing is to make sure that Kashmiri Musalmans continue to be killed. Were the Kashmir issue to be allowed to cool, both sides could reduce their defence expenditure and get on with bettering the lot of the people, with opening up trade on an MFN basis, and so forth. Left to themselves, the Kashmiris would probably vote to go with neither. They asked about the progress of the Track-2 NIMRANA talks much discussed in both countries. No progress, the deadlock continues. The talkers have no clout and the vested interests on either side are not keen on a settlement. I, for one, do not understand why Oslo-like talks are being shunned. Anyway, meeting Mahnaz again brought back memories of Chittagong where I used to stay with and enjoy the hospitality of her parents, Isky and Akhtar (when our good ships the Ohrmazd and the Rustom berthed), and of my many talks with her grandfather, one of Jinnahs trusted lieutenants, an outspoken man who could not suffer fools. He was never afraid to assert his views on men and matters, right or wrong. For the real nasties, he had his own terminology  zehr-e-maar (snakes poison). Those who talked rot were the khar, khar, kharaan (donkey, donkey, donkeys all), and were told so to their faces. Mirza Abol Hassan, a Cambridge man, barrister, merchant and industrialist, was chosen by Jinnah to be our first ambassador to the United States and to the United Nations. In May 1948, he wrote to his Governor-General: ...The more I follow international politics and the more I come in contact with it at Lake Success, the greater grows my belief that in international affairs, the Law of the Jungle holds unquestioned sway. Justice, equity, fair-play and legality are hollow words. Might is right and every question or dispute is judged not on its merits but on the touchstone of expendiency and power politics. He who is strong can get what he wants and he who gets hold of anything and is strong enough to keep it, retains it in spite of the inequity and illegality of his act. As I have said, the more I see the UN at work, the more I arrive at the conclusion that reliance on this body to do justice is to expect the impossible. Every nation will have to rely on its own strength. It is, therefore, absolutely essential for us to build the structure of our strength on a sound foundation... Basic ingredients. The recipe was known from day one, but heed was never taken. We never worked hard at becoming strong, we never strove to be counted. There was never a cohesive purposeful team, each ignorant greedy man pulled his own way. The weak foundations crumbled. In the comity of nations, we are well established as a Third-World country (verging on the fourth). Amongst the front rankers, we are treated as a joke. At international conferences, particularly those that deal with money and investment matters, our leaders have been equated with liars, charlatans, fools and cheats. Not that we deserve all that we get, but then why do we always expect others to bail us out? Eight additional federal ministers were sworn in on Wednesday, amongst them Nawaz Khokar  General Naseerullah Babar is due to resign, having proclaimed he would were Khokhar ever to become a minister  and seven ministers of state, amongst them Manzoor Wassan, who, as a minister in Benazirs previous round settled a disagreement with his secretary at gunpoint. Nawabzada Ghazanfar Gul of Gujrat who was expecting a call, and did not receive one, was reported on Tuesday to already be in shock. Can anyone of any credibility tell us how the addition of one of the men  some street-fighters, some notorious skimmers  can help govern us better? Granted, there is dissension and disgruntlement in the Party, and to hold things together, however temporarily, many more must be given positions where they can amass pelf and power. But each man will cost us half a million rupees per month above the table and this, added to their unbounded capacity to indulge in scams and skim-offs, will in no time relieve us of a billion. A massive non-development exercise. The bell is tolling. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960804 ------------------------------------------------------------------- Terrorism (contd.) ------------------------------------------------------------------- Omar Kureishi CARRYING on from last week on the subject of terrorism, the bomb blast at the Centennial Park in Atlanta, the muffled explosion and the plume of blue smoke heard and seen around the world by shocked but not surprised television viewers underlines how dangerous the world has become. But it was always a dangerous world. What makes the difference now is the chilling knowledge that the world is at the mercy of deranged individuals and groups. Excessive zeal in the pursuit of a personal grudge or a public grievance is a kind of neurosis, a sense of persecution wrapped up in a determination to seek revenge, a kind of thrashing about at invisible enemies but who turn out to be innocent men, women and children. Atlanta was a sitting duck, that terrorists of one kind or another would strike could have been foretold. There had been too much hype about it, the temptation to turn security into show business was too much to resist. We should be grateful that the bomb blast did not cause greater damage in lives and property but it caused enough damage to Atlantas boast that it was the city too busy to hate and it made a nonsense of an even more extravagant boast of the Mayor of Atlanta who had promised repeatedly that the city would be the safest place on Earth during the Olympics. Backing up the boast was a security force of 30,000 and an outlay of US $227 million. Neither the security force nor the money was enough against one or more than one madman. A humbling thought, a perverse, ugly version of David and Goliath. Perhaps, the terrorist did not mean to cause serious damage. Only to make a statement. If he could have placed a pipe-bomb without detection, he could have placed something far more deadly. He was calling the shots, literally. The downing of TWAs flight 800 and the Atlanta bomb blast plus the renewed activity of the IRA plus other and varying acts of violence has injected more urgency in the G-7 meeting held in Paris to devise ways and means of collectively combating terrorism. In the United States, there has been some agonising soul-searching and there has been political activity to have a bi-partisan resolution passed by Congress that will strike a balance between individual liberty and public safety. The emphasis is on the fact that it will be a bi-partisan resolution, an important and instructive indicator that even in an election year, the Democrats and Republicans can close ranks in the national interest. In my column last week I had suggested an All Parties Conference with a single item agenda  how to combat terrorism, I had stated that such a conference would be welcomed by people from all walks of life. I am not surprised that not the slightest notice was taken of the suggestion. I did not expect that there would. We have our way of doing things or more importantly of not doing things. But even more significant, both in respect of the TWA mid-air explosion and the bomb blast in Atlanta, there has been frenetic but purposeful activity by the large number of agencies investigating these incidents. They cannot be accused of sitting on their haunches. They are hard at work. The public has been kept fully informed and there are almost daily bulletins about the progress even when the leads have been found to be false. There is no doubt in anybodys mind that the cases will be kept open until they have been solved and the criminals arrested. Even if it takes years. The FBI acted quickly and decisively in the case of the Oklahoma bombing and were able to nab Timothy Mcveigh as the likely bomber. We were able to see the FBI at work on CNN and it must have been reassuring for the American public that their premier agency was on top of the investigations and not goofing off. There have been ten bomb blasts in Punjab alone in recent months, high-profile blasts including those at the Shaukat Khanum Hospital and the Lahore Airport. Then there was the bombing of the Egyptian Embassy in Islamabad. There are no external indications that these blasts are being pursued, at any rate as far as the public is concerned. We know nothing of the progress that has been made, if any progress has been made. All we have been told is the possibility of a foreign hand being involved but if that is the case we are entitled to know how soon this foreign hand will be identified and dealt with. But terrorist acts that go back many years remain in the pending tray. Presumably they are being dealt with. But the bottom-line is that we have yet to nab a single terrorist. Is this an indication of poor police work? Or are there other reasons that act as constraints on open and fearless investigation? Over the years, many of us have lamented the fact that crime has been politicised with the flip side of the coin, politics begin criminalised. Could this fact have something to do with the inability of those responsible from making progress in their investigations? I have read of elaborate measures that are being taken to beef up security at the airports. I do not wish to seem to be cynical but apart from harassing the public even more, I cannot see these measures adding to the safety of airports. Surely we cannot improve on the security measures of JFK Airport or those at Atlanta. In the end, they proved ineffective. What we need, first of all, is a common resolve, complete agreement that the terrorist is an enemy of this country. And the other is some success, some hard results in catching some of the terrorists or smashing their network, anything that will demonstrate to the public and thus will reassure it that going after the terrorists is serious business and not rhetoric. We dont need pacifying. We need results. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960803 ------------------------------------------------------------------- Whats going on? ------------------------------------------------------------------- Mazdak THE opposition is promising a campaign to topple the government. Transporters have called for weekly strikes. The apex textile body has announced a closure of mills. The cotton-related industrial units of Faisalabad have been shut for three weeks. A number of cases against the governments decisions and actions have been moved. Whats going on? All these seemingly unrelated announcements and occurrences are part of a pattern. Like sharks smelling blood in the water, anti-government elements are closing in for the kill. In nature, a wounded animal will immediately attract the attention of nearby predators. Hence the term lame-duck administration to describe a government on its way out. The PDF government, too, is thrashing about with very little control over its limbs, uncoordinated in its words and actions, advertising to the world that it is in mortal agony. But to a very great extent, these wounds are entirely self- inflicted. The killer budget announced a few weeks ago has granted the opposition a new lease of life by giving it ammunition to bombard the government with. Apart from its economic fall-out, the budget was a remarkably insensitive document as it made no pretence to spread the pain. It would have made political sense to announce some kind of token tax on feudals and some cosmetic cuts in the bloated expenditure of the Presidency and the Prime Ministers House. But our fiscal dream team, composed entirely of unelected bureaucrats, could not be bothered with such window-dressing. Remember how Junejo reacted when there was an outcry against the budget announced by his government? He immediately proclaimed that as an economy measure, civil servants and generals would henceforth ride in Suzukis. While it resulted in no savings, this ploy helped defuse public anger. This governments response to criticism over the harshness of the budget is to parrot that it had to impose harsh levies to restore fiscal stability after Nawaz Sharifs profligate ways. This line does not wash as it is now three years since the PML government was dismissed. In any case, the housewife paying 45 rupees for a kilo of dal is not concerned with the larger macro economic-picture: she just feels the pain and panic of trying to feed her family. Sensing this administrations weakness, a large number of traders, transporters and industrialists have launched a non- co-operation movement. The result is to send the stock market into a tail-spin from which it may not recover during the incumbency of this government. From a high of 2,600 points soon after Benazir Bhutto was sworn in, the index has plunged to below 1,500, and there is talk of its sinking further to around 1,200. Stock brokers are saying openly that the market will gain at least 400 points the day there is a change in Islamabad. Similarly, the rupee is in free fall, having shed nearly 25% of its value against the dollar since October, 1993. Obviously, the feudals who are in power are unaware of the implications of a collapse of the nations bourses and its currency. As far as they are concerned, untaxed wealth from their inherited lands keeps rolling in to sustain their obscene lifestyle. But they should know that closed factories, falling share prices and a plummeting rupee spell disaster just as surely as do poor crops and floods. Unfortunately, the ruling party  historically viewed with suspicion by the business community following the disastrous nationalisation programme of the seventies  is seen as being anti-business today. Despite the governments privatisation policies, the recent budget confirms the business communitys doubts. For its part, the government sees the capitalist class as being Nawaz Sharifs allies in the current campaign, and hence there is a deadlock between the two sides that shows no sign of being broken any time soon. Meanwhile, the economy continues to slide deeper and deeper into recession. It is this looming crisis  even more than the wholly unnecessary confrontation the government has precipitated with the judiciary  that has made the position of this administration so tenuous. But perhaps even more than its grip on the economy, it is the governments moral authority that has been severely eroded. While rumours of corruption have swirled around those in power, the physical evidence of the mansion in Surrey cannot be swept under the carpet, and the effects of the scandal should not be underestimated. Much of the on-going crisis has its roots in the permanent state of confrontation that exists between the government  any government  and the opposition. Most of the energies of the ruling party are focused on hanging on to power, while endless strikes and street movements destabilise the economy. In this context, it would be instructive to recall the words of a famous South Asian politician on ensuring constructive opposition: First of all there should be effective guarantees that the elections will not be manipulated by the government... The impartiality of the head of state is the second essential of the role of the opposition... Unfortunately, there are many instances when the head of the state plays a partisan role... The third essential ingredient of the role of opposition is a measure of tolerance and mutual respect... every democratic government has to accept that it is not there to stay for ever... The fourth essential ingredient of the role of the opposition is the rule of law. It is not permissible in a democracy to victimise the opposition. Yet this seems to be the common pursuit of government in Asian societies... If these four conditions are satisfied it will not be necessary for the opposition to take to the streets... Governments may come and go but the rule of law will prevail... These quotes are from a speech made at the conference of opposition leaders from the SAARC countries held in Karachi in 1992. The speaker? Benazir Bhutto. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960808 ------------------------------------------------------------------- The power of mud ------------------------------------------------------------------- Benazir Bhutto I WAS deeply saddened when I read about the suicide of Adm. James Boorda, the American chief of naval operations. What disturbed me so greatly was that, according to reports, his act was precipitated by an investigative article that the admiral believed might lead to personal shame or dishonour. So he chose to end his life rather than face the scandal that he saw coming. What was the scandal about? It boiled down to whether Boorda should have worn a small bronze star that costs less than a dollar. He already had a chestful of medals to prove his valour and service  he really didnt need one more. His supporters said he was entitled to wear the star. Others said that, technically, he was not. Although Boorda called it an honest mistake, whether he was entitled to wear it or not is now irrelevant. I remember reading about a French prime minister who took his own life over a scandal about unproved charges of obtaining a loan through a political favour. And apparantely, Vince Foster, a White House lawyer, committed suicide because he could not cope with the pressures of his public life in Washington, D.C. These deaths demonstrate that intense public scrutiny leading to a public trial can cause immense damage. It can cause stress, shock, trauma, shame and even the desire to end it all. A public trial, or especially a trial in the court of public opinion, is neither fair nor detached. It takes place in a highly charged atmosphere with accusations and counter-accusations coming so fast that the details are blurred. The public is confused, and the image is tarnished. Wasnt it Joseph Goebbels who said that if you throw enough mud, some of it will stick? I should know. During my first term as prime minister of Pakistan, from 1988 to 1990, I was the target of a sustained campaign of character assassination aimed at unconstitutionally undermining the peoples belief in the government I had formed. I went blue in the face protesting my innocence, to no avail. As soon the government I led was dismissed in a 1990 civil coup detat, I was sent a chilling message: Leave the country or your husband will face the same fate as your father. In other words, he would face a death sentence on trumped-up charges. Simultaneously, a diplomat was sent to my father-in-law by the new regime: Tell your son to divorce his wife and leave the country, or he will have to face terrible consequences, the messenger informed him. But my husband and I refused to leave. For us, it was a matter of honour to prove our innocence. But the threats we received proved not to be idle. I was hauled up on seven charges of misconduct. My husband was charged with seven separate counts, ranging from abuse of power to kidnapping to murder. We were called corrupt daily in the Press and on the TV and radio. And, although the legal charge against us was not corruption, this became the label the Press used to attack us. I was glad that my children were too young to understand what was going on. They couldnt read what was said in the papers, and they had not yet started going to school, where they would have had to suffer the taunts of schoolmates. Even my own relatives and friends seemed to get a sceptical look. After all, the saying goes that where theres smoke, theres fire  and in my case, the Press created a great deal of smoke. Every time I would meet an acquaintance, I would have to explain all the facts yet again, so that they could face their friends. That was the most terrible part: to be presumed guilty, no matter what we said or did. But my husband and I stayed the course. I am proud to say that we both won all our cases in the courts and legally proved our innocence. More than that, we faced the court of popular opinion and were re-elected to office, politically redeeming ourselves. Our honour was vindicated, as was the honour of my party and colleagues. We were able to hold our heads high throughout. Leopards dont change their spots, however, and my adversaries continue to make totally unsubstantiated and wild charges of corruption against my party, my government and my family. They refuse to talk about the issues... about the democratic process, demographic pressures and the debt trap that Pakistan faces. It seems their manifesto is mudslinging, and the truth is the first victim. I read that an American first lady once said she didnt recognise herself in the way the Press sometimes portrayed her. She articulated my sentiments exactly. Of course the public has the right to know the facts. Of course the Press has a right to sniff out a story. But the individual also has a right to a fair trial and the presumption of innocence until proven guilty. Here I would like to state that journalists investigating the story cannot be held responsible for the admirals suicide. But it is time that we searched for some sort of yardstick to guide us in terms of fair comment and good judgement. I was always sensitive as a child, and I think I am still sensitive today. But I have built a wall around myself to protect me from sustained character assassination. Naturally, it still hurts at times, but I am pretty single- minded in my determination not to let the dirty tricks of my opponents deter me from fulfilling the public mandate I received. My heart goes out to Boordas widow and his family, who lost him because of an honest mistake. I can only repeat the words of President Clinton, I wish the commander-in- chief had told him that this is not worth killing yourself for.Copyright 1996 Dawn-Creators Syndicate, Inc.

SPORTS

960803 ------------------------------------------------------------------- Pakistans performance not yet upto the mark ------------------------------------------------------------------- A. Majid Khan The recently concluded juniors (Under-19) World squash team championship which yielded only a bronze medal by virtue of Pakistans third position in the 30-nation tournament in Cairo, actually reflects some progress. Though Pakistan, the twice winners of the team trophy in 1979 in England and 1982 in Malaysia could not succeed in winning back the title, its performance in Cairo, however, was much better as compared to the previous two championships when We finished ninth in the 1992 championship and fifth in the 1994 event. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960803 ------------------------------------------------------------------- Lords show impresses injured England ------------------------------------------------------------------- Qamar Ahmed LONDON: The wounds of an embarrassing defeat suffered by England at Lords by 164 runs and the loss of face in the court of law two days later when the jury with a majority of 10 to 2 decided in favour of the former captain Imran Khan and threw the libel suit in the bin will obviously take some time to heal. Ever with the passage of time, the scars will remain for some time to come. England had not expected a humiliation such as at Lords in the first Test when Waqar Younis came into his own and devastated an already fragile batting line-up or when little leg-spinner Mushtaq weaved his web around them. Both of them bowled with such authority that perhaps any batting side would have struggled and would have needed more than skill and courage to cope with them. The batting of Saeed Anwar who scored 88 and 74 and that of Inzamam-ul-Haq who achieved the distinction of being the fifth century maker at Lords for Pakistan and register another score of over fifty in the second innings, and that of Ijaz Ahmed coming back into form with 76 and young Shadab Kabirs precocious talent while opening the innings in place of Aamir Sohail in the second innings, were all the contributory factors in Pakistans impressive victory. Only hours earlier, the President of the MCC Sir Oliver Popplewell described the Pakistan team as one of the best in the world and the great ambassadors of their country. He praised the touring management with the British Prime Minister Mr John Major present as one of the distinguished guests. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960804 ------------------------------------------------------------------- Mushtaq to take over cricket post after England tour ------------------------------------------------------------------- Samiul Hasan KARACHI, Aug 3: The Chief Executive of the Pakistan Cricket Board, Majid Khan, said the management of the cricket team, presently touring England, was informed before departure that their assignment was only till the English schedule. The outspoken Chief Executive further revealed that Mushtaq Mohammads appointment as cricket manager was made by the Executive Council on his personal recommendation. I had told the tour management (Yawar Saeed and Nasimul Ghani) that they will be released after the England tour. The two had agreed in principle, Majid told a well-attended corps of sports scribes, adding: No assessment of theirs (tour management) was required since the decision to replace them had been taken before the team had actually left for England. Mushtaq will take over the charge of the Pakistan cricket team after the conclusion of the England tour. His contract will expire after the 1999 World Cup to be organised by England. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960805 ------------------------------------------------------------------- Pakistan cricket system may collapse, fears Majid ------------------------------------------------------------------- Sports Reporter KARACHI, Aug 4: The Chief Executive of the Pakistan Cricket Board (PCB), Majid Khan, has said that cricket in the country has reached a stage where it can sustain no more. It is my guess that if the system is not improved drastically or changed, it may even collapse by the turn of the century, Majid observed. Giving the background of the scenario, Majid said that the countrys club cricket was in a very poor shape. In Karachi, there are over 400 clubs but only 30 to 50 grounds. Mathematically, the 400th club will have to wait probably for a week for its turn. Secondly, in those 30 to 50 clubs, mostly are cemented tracks where the technique is absolutely different. The batsmen suffer the most when they come to turf wickets and even the most talented of batsmen fail to make any impact. Majid stated that the game has now become very expensive as a good cricket bat costs Rs 1,200 while the ball costs Rs 300. Can a batsman afford to buy such an expensive bat every month or can a club afford to buy a ball costing Rs 300 ball every day in the background that clubs have little resources to run their teams, he questioned? He stated that the only solution to keep the club cricket alive was to make the associations commercial so that money keeps flowing from top to bottom. Not only the associations have to become commercial, the cricket board itself needs to be financially viable. Majid stated that another major crisis which Pakistan is facing is that the captains lack proper education. How many cricketers know 52 laws of the game. Even I dont know while Graham Halbish, Chief Executive of the Australian Cricket Board (ACB), who has hardly played any cricket, has all the laws on his finger-tips. It is precisely why all the cricket boards take-off while we are far behind. We hardly make any impact at the ICC. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960808 ------------------------------------------------------------------- Allan lamb shattered over libel case loss ------------------------------------------------------------------- Athar Ali LONDON, Aug 7: Allan Lamb has said that he was devastated and shattered at losing to Imran Khan. The former England Test cricketer had jointly with Ian Botham brought a libel action against Imran Khan accusing him of calling them racists, lacking in breeding and education. Botham had separately sued the former Pakistan captain for damages alleging that he had accused him of ball-tampering. Allan Lamb, extracts from whose autobiography are being serialised in the Daily Mail, says that after fighting out the case in the court he now feels that libel laws are like a lottery. You are in the hands of the jury more than the counsel and judge. He reminds that the verdict in the High Court was not unanimous and claims that a couple of jurors were in tears. Despite losing, my only regret is for what I put Lindsay (Mrs Lamb) through. Otherwise, I did what I have always done  gone through my reaction to a libel that called me racist, says Lamb. He discloses that right up to the start of the trial, there were efforts to settle, particularly from businessman Jim Slater, a good friend of Imrans father-in-law, Jimmy Goldsmith. Slater, Lamb adds, offered to meet most of the costs already incurred if the parties agreed to call it quits and shake hands. Our line did not alter. If Imran withdrew and apologised for his remarks then we were happy. He would not, so the pin was pulled. Imran refused to apologies for something he claimed he never said. Lamb denies that the action was brought to get some easy money. Racism was the issue. I went to court on the greatest matter of principle in my life. I still cant take it that Imran could spew out stuff like that and get away with it by saying that he was misquoted when it came to references to Ian Botham and me.

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