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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 09 May 1996 Issue : 02/19 -------------------------------------------------------------------

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 TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL ADDRESS! (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

CONTENTS

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NATIONAL NEWS

Bus bomb blast leaves six dead in Sheikhupura Imran holds agencies responsible for blast Talks could start after conditions met, says MQM Kabul to pay for burning of embassy Child labour issue being misused, PM tells Swedes Benazir opposes harsh taxation Nakai offers to give up royalty for consensus Prolonged power outages compound miseries Loadshedding from 10th, says Khar Water supply to PECHS homes contaminated by sewage Private TV channel to go on air from July 1 Three cygnets hatch out in zoo ---------------------------------

BUSINESS & ECONOMY

Export crisis and foreign exchange crunch Govt decides to undo UBL deal with Saudi firm Rs314.5m bid offered for BEL Many power sector projects still uncertain Cotton shortage may force closure of 100 textile units Shaheen Air suspends domestic operations SPI shows 0.14% increase Govt to provide financial help to sick units IMF asks govt to levy GST on all items Stock exchanges to register all public firms Sheikhupura blast disrupts big rally ---------------------------------------

EDITORIALS & FEATURES

"... We can do so little" Ardeshir Cowasjee Holidays galore Omar Kureishi "And corrupt how?" Ayaz Amir A liberal, forward-looking & modern state? Tahir Mirza Reflections in the tax mirror Sultan Ahmed -----------

SPORTS

Inter-School sports fiesta in city from 14th Wasim to skipper team till the end of next season Ball-tampering row revived by UK tabloid Press Need to fill gaps in our cricket Manzoor to have two assistant coaches Jinnah Foundation tennis Quaid volleyball gets going today Pakistan to participate in 5 events in Olympics

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NATIONAL NEWS

=================================================================== 960509 ------------------------------------------------------------------- Bus bomb blast leaves six dead in Sheikhupura ------------------------------------------------------------------- Intikhab Hanif LAHORE, May 8: Six people, including a child and a woman, were killed and 51 others were injured, eight of them seriously, when a powerful bomb exploded in a passenger bus in Sheikhupura. Three people died on the spot, while the woman and the child died at the nearby District Headquarters Hospital. Nine critically injured people were rushed to the Mayo Hospital in Lahore where a 15-year-old unidentified boy succumbed to his injuries. A police constable, Muhammad Yousaf, who had suffered severe head injuries was later shifted to the Lahore General Hospital. Forty-three people were treated at the District Headquarters Hospital, Sheikhupura. Among them were 10 women and two children. Like the incident in Bhai Pheru on April 28, the bomb was placed under a seat near the fuel tank of the bus. But while the fuel tank of the bus in Bhai Pheru had caught fire following the blast, roasting alive most of the passengers, the fuel tank of the bus in Sheikhupura remained in tact, and many people managed to get out of the vehicle. Before the Bhai Pheru explosion, a bomb had gone off in the Shaukat Khanum Memorial Hospital on April 18, killing six. Thus, Wednesdays incident was the third terrorist act in the Punjab in less than a month. Senior police officials and district administration are linking the Sheikhupura explosion to the Bhai Pheru blast due to the almost identical placement of bombs. Those who died were sitting on or near the seat under which the bomb was placed. A woman passenger who sustained injuries said she had seen two young men and a stoutly built young woman leaving a brief case under a seat next to hers before disembarking at the Nabipura bus stop, about two furlongs before the stop where the bomb exploded. Strong contingents of police had cordoned off the area around the Nabipura bus stop and were looking for the three suspects. Bomb disposal squad personnel said the explosion was caused by a 2.50kg to 3kg locally- made time device. The explosive material used for the blast was wrapped in plastic. The bus (LEJ 2755) was coming to Sheikhupura from Hafizabad. Its driver and owner, Muhammad Hussain, and the conductor, Kalu, remained unhurt but the latter went missing after the explosion and police were looking for him. The explosion took place when some passengers were disembarking at a stop in front of a private hospital and near the District Headquarters Hospital on Lahore Road at around 8 am. The bus had several schoolchildren as passengers. Some passengers were sitting on the roof of the 52- seater bus which was packed to capacity. Eyewitnesses said they heard a bang but initially could not understand what had happened. The blast was so powerful that its sound was heard in a radius of three kilometres. A cloud of smoke rose from the bus followed by a light fire and people saw injured passengers rushing out of the damaged bus. Kausar Mustafa, living close to the hospital, said he first thought a bomb had gone off in the hospital. But he came out of his house and saw a bus burning and injured people lying near it. He said ambulances and doctors from the DHQ hospital reached the scene first and shifted the dead and the injured to the hospital. The fire brigade and police reached later. He said he saw some people lying dead on a seat facing the door of the bus. Among them was a child. The bus driver, Mohammad Hussain, said he had left Hafizabad for Sheikhupura at 6am. During the journey he had stopped at almost all the 25 or so stops to pick up passengers, mainly workmen and students. He said when he stopped the bus near the hospital, some passengers alighted and the blast took place immediately afterwards. First he thought one of the tyres had burst. But soon he realised what had happened after hearing the cries of the injured passengers. He said it was not possible to check the luggage of every passenger. Normally police search luggage and passengers at Bagh Morr, 20km from Sheikhupura, but it was not done on Wednesday. The final destination of the bus was Adda Pir Bahar Shah, one- and-a- half kilometres from the site of the explosion. It seemed that the bomb was timed to explode on the way as most passengers were to disembark outside the general bus stand, he said. The driver said his conductor was a boy and could not have anything to do with the explosion. He had run away probably out of fear. He said when he reached the limits of Sheikhupura there were around 80 passengers including those sitting on the roof. Many of them were students of local schools and colleges who had left the bus at the college stop. Rashidan Bibi, 40, of Sheikhupura, who was travelling with two of her sisters-in-law, claimed she had spotted the two men and a woman leaving the brief case in the bus. She said the three were sitting on the seat next to her. One man was wearing a light blue cotton shalwar kameez. The other man was wearing a tea coloured shalwar-kameez suit. The woman was sturdy and young and the men had moustaches, Rashidan Bibi said. Rashidan, whose hearing was impaired by the bomb blast, said the three had left the bus at Nabipura and she noticed a brief case under their seat which was soon occupied by three more passengers. She said she did not know how the bomb exploded. This correspondent saw the bodies of the dead placed on the floor in a small room of the hospital and were covered with ice. Dr Iftikhar of the District Headquarters Hospital said there was no mortuary in the hospital and the bodies were being kept in the room so that their relatives could identify them. They would be shifted to the citys morgue afterwards, he said. A senior police officer claimed that the injured were promptly shifted to hospitals. Senior Minister Malik Mushtaq Awan, whose constituency lies in Sheikhupura, was the first senior official to reach the scene. He was followed by IG Punjab Mohammad Abbas Khan who refused to talk to reporters. Provincial Minister Rai Ejaz Ahmad, who also belongs to the area, visited the hospital and distributed Rs 10,000 each among the injured and Rs 30,000 among the heirs of the dead on behalf of the Punjab government. Talking to reporters he said the subversion was carried out by Indian agents. They first struck in the home constituency (Bhai Pheru) of the chief minister and now they had targeted a bus in the constituency of the senior minister. We will be able to check such subversive activities with an active and alert police and intelligent agencies, the minister said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Imran holds agencies responsible for blast ------------------------------------------------------------------- Bureau Report LAHORE, May 5: Imran Khan, cricketer-turned social worker who is now trying to enter politics, on Sunday held government agencies responsible for the April 14 bomb blast at his cancer hospital and appealed to the chief justice of Pakistan to investigate the matter. At a news conference at the newly opened Scotch Corner office of his Tehrik-i-Insaaf, he maintained that since the government itself was involved in the blast it could not conduct an inquiry into the incident. Imran Khan released to the Press copies of the letter he has sent to the chief justice bringing to his notice the alleged violation of his fundamental rights and appealing to him to look into the issue. After the March 20 judgement on appointment of judges to superior courts, the Supreme Court was the only institution which could be expected to safeguard his rights, Imran Khan said. This is the first time that he has directly blamed the government for the blast in his hospital, although he had previously made insinuation to this effect. Imran alleged that intelligence agencies were tapping his telephones and one agency had even told him the exact conversation he had with a friend. The agencies, he added, kept him under surveillance when he was in Islamabad. He said these agencies were not meant to keep governments in power or to keep track of people not liked by the rulers. He suggested that there should be only one intelligence agency in the country. In his words, when Ms Bhutto was on friendly terms with him during martial law days, she was dead opposed to the intelligence agencies chasing her all the time. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Talks could start after conditions met, says MQM ------------------------------------------------------------------- Omar R. Quraishi KARACHI, May 5: The MQM on Thursday gave a cautious response to Prime Minister Benazir Bhuttos remarks at a foreign correspondents briefing in Islamabad, and said if certain steps were taken, talks between the government and the MQM could resume. Senator Ishtiaq Azhar said that there were contradictions within the governments stance towards his party. If these contradictions are reconciled and also if the government gives an answer to a letter the MQM sent to Law Minister N.D. Khan last December, then perhaps the stalled MQM-government talks could begin, he said. It would be even better, he said, if the government directly approached Altaf Hussain in London. Mr Azhar, who is also the convenor of the MQM co-ordination committee, said contradictions existed between recent statements of the Prime Minister and the Sindh chief minister, and that this showed the governments own policy towards the MQM was confused. At a briefing for foreign correspondents on Saturday Prime Minister Benazir Bhutto had said that contacts between the government and the MQM had not broken down and that there had been a slow but tangible progress. The Sindh chief minister, Mr Azhar said, had been talking of contrary things. They have registered cases against me and Sheikh Liaquat Hussain. The prime minister says something and he [the chief minister] says something. These contradictions seem to point to a confused stand the government has towards the MQM, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960508 ------------------------------------------------------------------- Kabul to pay for burning of embassy ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 7: In a major breakthrough in diplomatic ties between Pakistan and Afghanistan on Tuesday, Islamabads stand that Kabul apologise and pay compensation for the burning of its mission was vindicated when a visiting six-member Afghan delegation agreed in principle to accept Pakistans demands. They have agreed to pay us the compensation along with reconstruction of our mission and provision of temporary accommodation in Kabul for our staff, a senior foreign office official told Dawn. He said it was the first time Kabul made an official acknowledgement and accepted Pakistans conditions for resumption of full-fledged diplomatic relations between the two countries since the attack on embassy last September. Foreign Minister Sardar Assef Ahmed Ali led the Pakistani side the Afghan side was led by the transport minister, Abdul Ghafar Saim. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960509 ------------------------------------------------------------------- Child labour issue being misused, PM tells Swedes ------------------------------------------------------------------- Alfred de Tavares STOCKHOLM, MAY 8: Pakistan today won the Swedish governments appreciation over its contention that the issue of child labour has been blown out of proportion and was being misused to damage its export trade. During their first round of bilateral talks here on Wednesday, Prime Minister Benazir Bhutto and her Swedish counterpart, Mr Goran Persson, devoted major part of their half an hour discussion to the problem of child labour in Pakistan and how it can be curtailed, with a view towards its eventual eradication. Having arrived in Stockholm late Tuesday evening, Ms Bhutto devoted most of Wednesday in contacts with the Swedish parliament and the influential parliamentary foreign relations committee followed by a lunch with King Karl and Queen Silvia of Sweden at the Royal Court and discussions with Goran Persson and Minister of Trade Bjorn von Sydow. Briefing newsmen about the talks, Foreign Secretary Najmuddin Sheikh said that the Swedish government understood well that child labour problem in Pakistan was not so acute and that it was being misused for protectionist measures. Prime Minister Bhutto said that it was unfair to damage Pakistans trade, particularly its carpet industry on the pretext of child labour. She added that her government is trying utmost to increase the roll in schools by opening more and more schools, adding she would welcome any assistance from any quarter to further this cause. Ms. Bhutto said that ILO has clarified that it has not prepared any report regarding child labour and this is mere a propaganda. Prime Minister Bhutto also informed Mr. Persson of Indian missile threat in the region besides its threat of another nuclear explosion. India is posing danger not only to Pakistan but it is also building a blue water navy. The two leaders agreed to further economic co-operation. Sweden will help Pakistan in the fields of fisheries and human resource development. Mr. Persson also promised to help Pakistan in the rehabilitation of poor children and in women education. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960503 ------------------------------------------------------------------- Benazir opposes harsh taxation ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, May 2: Prime Minister Benazir Bhutto has directed the authors of the 1996-97 budget to avoid proposing harsh taxation measures, and offer some relief package for the salaried classes. Informed sources told Dawn that the budget exercises were on the last stages of their finalisation, with Prime Minister Benazir Bhutto asking the planners to propose minimum taxes to help escape political backlash by the opposition parties. She said that although inflation has been restricted to single digit (9 per cent), people were generally facing the problem of price hike. The Prime Minister said that the new budget should be carved in such a manner that it has a minimum affect on poor and working classes and that their legitimate grievances must be removed. Sources said she particularly called for satisfying the salaried classes with a view to providing them attractive income tax package. In this regard, Ms Bhutto directed the concerned authorities to take into account the enhancing income tax ceiling from the present Rs 50,000 to Rs 75,000. Chairman Central Board of Revenue (CBR) Alvi Abdul Rahim has been privately pleading for salaried classes and conceded that they were the worst sufferers. He, However said, that the government will continue to face difficulties while offering meaningful relief to the salaried classes unless the business community as a whole pays its legitimate share of taxes. Sources said that personally Mr Alvi has favoured in various meetings to substantially increase the income tax ceiling for the salaried people. And now the Prime Minister too is interested to do some generous favour to the salaried classes, said an official hoping that the new budget would have minimum burden on the common man due to the personal interest being taken by the Prime Minister. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Nakai offers to give up royalty for consensus ------------------------------------------------------------------- Bureau Report LAHORE, May 5: The Punjab would not charge any royalty on power generated from the Kalabagh dam if the other provinces agreed to the construction of the 3,600 megawatt project, Chief Minister Sardar Arif Nakai declared here on Sunday night. Addressing a ceremony and then talking to reporters at the Punjab Civil Services Academy, he said the amount of royalty of such a gigantic project would run into billions of rupees but the Punjab would be prepared to surrender it provided other provinces withdrew their objections against its construction. Holding the political leaders responsible for delay in the completion of the dual-purpose dam, the chief minister said they should adopt a positive attitude on such an important national project. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960508 ------------------------------------------------------------------- Prolonged power outages compound miseries ------------------------------------------------------------------- Our Reporter KARACHI, May 7: Prolonged, unannounced and successive power outages in many parts of the city in the blazing summer heat on Tuesday affected domestic consumers and business houses alike. Work in the countrys premier business district on I.I. Chundrigar Road and Saddar was badly affected owing to prolonged and successive power outages which also affected the computerised system of the Karachi Stock Exchange. Standby generators at the KSE and other multinationals failed to cope with the situation. A KESC spokesman said the problem was an offshoot of the two successive breakdowns on April 28 after a fire had neutralised the Landhi grid station and the two transformers of the Pipri West grid station had also succumbed to the pressure. We are compelled to resort to loadshedding because the demand is more than the power generation and at the moment the back up support from WAPDA is also difficult owing to its own difficulties, said KESC chairman Syed Tanzeem Hussain Naqvi. Business in big departmental stores was also affected and even standby generators could not save their expensive perishable inventories. Complainants demanded that the KESC must fix the time of loadshedding for each area and must stick to that. They all abhorred the attitude of the KESC complaint staff and the billing department. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960503 ------------------------------------------------------------------- Loadshedding from 10th, says Khar ------------------------------------------------------------------- Bureau Report LAHORE, May 2: Fifteen-minute loadshedding is to be enforced daily at every feeder all over the country from May 10 to June 10 to meet an expected power shortfall of 506mw during the current summer season, the Water and Power Development Authority announced here on Thursday.. The decision was taken at a high-level meeting of senior WAPDA officials in the morning. The meeting was presided over by Federal Water and Power Minister Ghulam Mustafa Khar who later announced the decision at a Press conference. The minister claimed that the duration of loadshedding was far less this summer as compared to last year, when WAPDA had to overcome a shortfall of 700mw every month. Compared to last year, Mr Khar said, more water was stored in the Tarbela, Mangla and Chashma reservoirs. Mr Khar claimed that WAPDA had set up a cell and appointed a director to carry out research to utilise solar energy. In reply to a question, he said the government was considering to raise power tariffs, but we will try to keep them at the minimum possible level. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960507 ------------------------------------------------------------------- Water supply to PECHS homes contaminated by sewage ------------------------------------------------------------------- Staff Reporter KARACHI, May 6: Drinking water supplies to 12 houses, with 20 families, in PECHS have ended up getting mixed with raw sewage four times in the last one year, despite the fact that all of them have been paying betterment and water taxes, residents say. Sewage lines have been contaminating the water lines leading to houses in row numbers 56 and 57 and from the letters A, B, C, D, E, and F, in PECHS Block 2, the residents said. The last time we started getting water mixed with raw sewage through our taps was in March. It lasted for a week. We then went to the KWSB office in Sindhi Muslim Housing Society and they sent some people the next day. The gutter had overflowed in the street so they cleared it, dug up some area near the water line, found a breach and plugged it using rubber and cement, a resident told this reporter. The problem is, they said, is that this was the fourth time within one year that this had happened. One of them said that he had been a second-generation resident on this street and was quite sure that that the water and sewage pipe-lines were laid about 35 years ago, and laid quite close to each other, making chances of contamination  and consequently disease  quite high. Most of the residents here are professionals, business people or teachers. We all pay our taxes, and these include the betterment tax and the water tax. I pay around Rs 3000 as water tax every year, but what do I get? sewage through my taps, a resident said. Indeed, as one could imagine there were some horror stories. One female resident told Dawn that one of her children was taking a shower when a black and very smelly liquid started flowing down the shower nozzle. Another resident said that although it was too early to tell but she was experienced a slight rash on her hand and that it had started since the last week-long contamination episode in March. The residents said that towards the end of March officials from the Food department came and took some samples of the contaminated water. They said they were taking these samples to analyse them but that was almost six weeks ago. We have yet to hear of any results, that is, if there are any. What usually happens is whenever a gutter overflows we start getting sewage through our taps. We then either have to get water from other neighbours or go to our relatives houses to even eat, because we cant cook at home with that water, a female resident said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Private TV channel to go on air from July 1 ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, May 5: The government has granted permission to a private firm jointly owned by Shaheen Foundation and Pay TV to operate an independent television channel, tentatively scheduled to go on air from July 1. The Shaheen Foundation, a PAF welfare organisation operating on the lines of Fauji Foundation, has been allowed a five per cent stake in the firm to be called Shaheen Pay TV in return for using its good offices to obtain the governments permission. Informed sources said the government granted the licence to Shaheen Pay TV on receipt of a written request in this regard from the chief of the air staff. Eighteen applications with similar requests were reportedly filed away as pending. Those whose applications were not entertained included three leading newspaper groups. They have been denied the permission reportedly on the ground that it would give rise to monopolies in the information sector. Meanwhile, it is learnt that a leasing agreement has been signed between AsiaSat and Pay TV for one transponder which is likely to be installed in Turkey for onward transmission of programmes to Europe. The Shaheen Pay TV will have an eight member board of directors with two directors each from the Pay TV and Shaheen Foundation and four foreigners. Full particulars of the four foreign directors were not immediately available. The information ministry is said to have recommended that the management of Shaheen Pay TV, including that of its finances, be wholly and solely the responsibility of the four Pakistani directors on the board. It has also advised the government not to give any financial assistance to Shaheen Pay TV and in the interest of the state-run PTV, bind the private firm to carry specified PTV signals and also make it to abide by the guidelines given by the government from time to time about news, current affairs and the censor code. The Shaheen Pay TV is expected to have a one-year exclusive, monopolistic run in the market before the gates are thrown open for competition. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Three cygnets hatch out in zoo ------------------------------------------------------------------- Dr A. A. Quraishy KARACHI, May 5: Three black swan cygnets, still carrying the juvenile fluff in places, are growing well in the Karachi zoo. A black swan pair, overtaken by the biological urge this spring, hatched them out and worked hard to make a smug leafy nest, twig by twig, for weeks. As the reproductive hormones intensified in the mother, she placed some downy feathers from her own body in the centre of the twiggy home for the pale green eggs that would go infertile without this insulation on which they will rest for 28 more days. The mother soon after laying felt a rush of blood in front of her chest muscles which prompted her to cuddle the eggs for transferring the right warmth from her body to trigger the complex process of the formation of the cygnets. While the papa stood guard round-the-clock, the mama kept turning the eggs thrice every 24 hours, for all sides to receive even heat emerging from the mamas breast muscles. The graceful black swans with a shiny jet-black plumage, curved in several places, as if, fresh from a make-up room, are considered the most beautiful in the swan clan. None equals the grace of the body and the delicate movements made by the curvaceous necks with which they preen for hours and go to sleep by hiding it under one of the wings and standing on one foot or floating on the surface of the water, with a foot on the back for rest. A dab of pink on the tip of the grey-black beak resembles a lipstick that fascinates man with the message all of us feel and know as sweet. There are six black swans, all from Tasmania, south-eastern tip of Australia, in the zoo. Although so far from their original habitat, all have accepted the climate of Karachi as homogeneous and like the food and care they receive here.

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BUSINESS & ECONOMY

960504 ------------------------------------------------------------------- Export crisis and foreign exchange crunch ------------------------------------------------------------------- Sultan Ahmed PAKISTANS external trade is facing a grave crisis in a period of acute foreign exchange crunch with exports lagging behind the target and imports leaping far above resulting in possibly the largest trade deficit exceeding $3 billion. Commerce Minister Chaudhry Ahmed Mukhtar says exports may rise close to the target of $9.2 billion, but imports may exceed $12 billion  far above the targeted imports of $10.92 billion for the current year. As a result, the trade deficit will be far above the target of $2 billion set for the current year, hopefully after last years deficit of $2.227 billion. If the deficit exceeds $3 billion that will not be a totally new happening. The deficit in 1992-93 was $3.11 billion, while the other years preceding and following that were better though in deficit. But what makes the difference is the heavier foreign exchange commitment of the country, with far lower home remittances expected than the $1,866 million received last year which marked a 25 per cent rise over the preceding year. Even without the rapid increase in the trade deficit the foreign exchange reserve was targeted to fall to $1,902 million by the end of this financial year from $2,737 m in July and the current balance of payments was expected to rise to 4.1 per cent of the GDP from 3.5 per cent last year, but now it seems that while the foreign exchange reserve may be boosted by heavy short term borrowing, exceeding a billion dollars, the balance of payments deficit may rise close to the 6.4 per cent of the GDP as it did in 1992-93. This year, however, not only have the home remittances been low but also the portfolio investment because of the crisis in the stock market which has resulted in outflow of the earlier investments made. And that will increase the balance of payments deficit. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960507 ------------------------------------------------------------------- Govt decides to undo UBL deal with Saudi firm ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, May 6: The government has decided to cancel the deal with Saudi Basharahil for the sale of 26 per cent management stakes in United Bank Limited (UBL), an official source told Dawn. The decision has been taken by the Chairman Privatisation Commission, Syed Naveed Qamar, with the prior consent of the Prime Minister Benazir Bhutto the source said. A formal announcement in this regard, with the invitation of fresh bids, is likely to be made sometime next week, the source added. Meanwhile the State Bank of Pakistan will return the amount of over Rs. 585 million deposited by the Saudi firm for the 26 per cent management stakes in UBL. It has become inevitable since the Saudi company had refused to fulfil the commitment of injecting 300 million dollars in the bank for improving its financial position. Moreover the payment had been in local currency through a businessman having dubious record, the source said. The Bank of England had also raised objections on the sale of UBL to an little known Saudi group having no experience in the banking sector and had asked the government of Pakistan to provide security. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960509 ------------------------------------------------------------------- Rs314.5m bid offered for BEL ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 8: LTV Group Consortium won 26 per cent management stake in the Banker Equity Limited (BEL) at a price of Rs. 314.5 million in the open bidding held here at the Privatisation Commission on Wednesday. The offer of Rs. 18.50 per share given by the Group is still subject to approval by the Cabinet Committee on Privatisation which is likely to meet next week. Though the bidding was closed at Rs. 15.25 yet the Group reviewed its highest bid and offered a price of Rs. 18.50 which is slightly higher than the prevailing price of BEL shares at the Stock Market. Earlier two  LTV Group Consortium and Crescent Investment Bank Consortium  out of the four prequalified bidders turned up at the Commission for final bidding. The bidding took off from the lowest price of Rs. 1 and stopped at the offer of Rs. 15.25 given by the LTV Group Consortium which was only 0.25 paisa higher than the final bid of Rs.15 of Crescent Investment Bank Consortium. Rauf Qureshi of LTV Group Consortium, however, indicated to the Commission that they were ready to review upwardly their highest bid if the price of Rs. 15.25 was not acceptable. Later a spokesman of the Commission disclosed that the LTV Group has given an offer of Rs. 18.50 which was accepted. According to the agreement after the management take over, all employees of BEL will be immediately awarded 40 per cent increase in the basic pay along with related allowances effective from January 1, 1996 and this increase will be subsequently adjusted at the time of the announcement of the Pay Commission, he added. BEL has total assets of Rs. 14.87 billion ($425 million) deposits of Rs. 5.17 billion ($148 million) and a network of 18 branches across the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960504 ------------------------------------------------------------------- Many power sector projects still uncertain ------------------------------------------------------------------- Farrukh Saleem THE principal policy thrust of the current PPP-government has been the expansion of our vastly underdeveloped power generation [and distribution] sector by way of attracting massive foreign investment. It has been estimated that country-wide scheduled and unscheduled load- shedding routinely causes an annual GDP loss of around Rs 30 billion. With the inauguration of the new Energy Policy, a couple of years ago, mega-investors from the US, Hong Kong, Korea and the UK have collectively singed memoranda of understanding (MOUs) valued at some $20 billion. The new energy package, according to PPIB (Private Power and Infrastructure Board) sources, had received a total of 116 applications from private sector sponsors that collectively represented a potential generation capacity of more than 26,000 MW requiring & financial outlay of around $25 billion. Around 65 per cent of all applicants were issued Letters of Intent (LOIs), but further screening and a requirement of a performance guarantee of Rs 10,000 per MW left less 3 dozen applicants who were eventually granted Letters of Support (LOSs). Applicants with LOSs in place still represents a generation capacity of more than 7,000 MW requiring an accumulated financing of a closed $7 billion. Of the 34 sponsors who have been issued LOSs only nine, or 25 per cent have been able to provide documentation showing that all of the debt and equity has been committed. These nine were, therefore, allowed to announce a technical financial close indicating that all of the required debt and equity may be in place. Almost all of the debt commitments contain scores of conditions that the sponsors must first meet prior to any actual release of financing. Informed sources estimate that no more than four or five of the original 116 applicants (3 per cent to 4 per cent of the total) shall be able to meet all the condition precedents enabling them to actually break ground and eventually begin generating electricity between now and the last day of December, 1977 (which, by the way, is the cut-off deadline to qualify for the premium of 0.025 cents/kwh). In an attempt to analytically assess the success of the Energy Policy all of the prospective power proposals were classified into four categories: (i) projects that are quite certain; (ii) projects that are almost certain; (iii) projects that are doubtful; and (iv) projects that have either been suspended or terminated by the sponsors or the PPIB. Certain category Power undertakings that fall in the certain category include Kohinoor Energy, Limited, AES, Kabirwalla and Southern Electric. Collectively, these projects shall have a generating capacity of less than 800 MW and a foreign investment component of around &700 million to $800 million spread over the following two years. At least one of the four projects in this category has been facing problems with their selected contractor and the foreign partner of another project has recently run into some sort of legal complications in his home country. Kabirwalla might not, however, be able to meet the December 97 deadline to qualify for a premium under the bulk Power Purchase Agreement (PPA). The combined generating capacity of these projects may represent a paltry 11 per cent of the applicants that were originally issued LOSs by the PPIB. The almost certain category includes those power proposals that have either already achieved a financial close or have a fairly reasonable chance of actually breaking ground in the recent future. This category may eventually include another one of the Fauji Foundations project, Rouche, Gul Ahmed Energy, Habibullah Energy, Uch and Japan Power. Habibullah Energy is the only project that has been allocated pipeline quality gas and is also backed by the huge Houston-based Coastal Corporation (Revenue: $10 billion). The projects financing is also based upon Coastals balance sheet. Gul Ahmed Energy still seems to be a few million dollars short of its requirement and Uch remains a highly controversial project. This category currently stands at around 1,600 MW. Some experts may, however, argue that Uch and Japan Power should really be placed in the doubtful category rather than the almost certain one. A depressing 39 per cent of all power projects [with LOSs in place] surely continue to fall in the doubtful category. The 800 MW, barrage- based Wak Power actually leads the pack in this category. Others include Liberty, Power Generation System Saba, Tractable, Multan Power, Tri-Star and Tapal. Collectively, this category represent more than 2.500 MW. Infrastructure Consulting Group (ICG) Liberty Power is being sponsored by an ex-World Bank employee who was forced to resign his post and is, therefore, not considered to be a credible sponsor. Liberty is being backed by a huge Malaysian utility company and also been allocated low- BTU gas. The sponsors might not be able to finance the ambitious 450 MW plant and the gas allocation in its current form may eventually pose some problems. Tractable has the House of Habib behind it and they have now reportedly recruited influential help from Islamabad as well. Power Generation System (Bilal Gilani) and Wak Power (Senator Gulzar) are both politically based projects and financiers do not feel all that comfortable with their long-term future. The two prospective projects whose performance deposit has actually been forfeited are Javed Saifullahs Security Electric Power and Nooruddin Feerastas Rupali Power. Enron Development with its huge 760 MW may finally be out of the game and the suspended category may by now contain more than 1,500 MW. Expansion of a countrys infrastructure is a highly capital intensive undertaking. Pakistans current debt rating of BB- is indeed a notch below investment grade and that actually puts it in the junk bond category. Raising of debt financing, therefore, continues to be the largest of hurdles. Most sponsors have been exploring conventional sources of financing and the government hasnt encouraged the establishment of non-conventional sources, the likes Infrastructural Mutual Funds. The current demand-supply gap stands at around 2,000 MW to 2,500 MW and the future growth in demand has been projected at around 8 per cent annum at least till the year 2000. While the Energy Policy itself was genuinely innovative, it was perhaps too ambitious. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960505 ------------------------------------------------------------------- Cotton shortage may force closure of 100 textile units ------------------------------------------------------------------- Parvaiz Ishfaq Rana KARACHI, May 4: The Chairman, APTMA Sindh-Balochistan, Mr Inamur Rehman apprehended on Saturday that about 100 textile units or around 25 per cent of the entire installed capacity of 10 million spindles will come to standstill by the end of June, if arrangements to meet the shortfall of around 0.1 million bales are not made. A large number of rotors have already closed down and by the end of June, out of 450 textile mills around 100 units will either have to reduce their shifts or go for lay-offs, but in majority of cases, he said, the industry will have to pull down their shutters for want of raw cotton. If no proper arrangements are made to ensure raw cotton supply beyond this period, then around 25 per cent of the installed capacity of spinning industry will remain closed till the commencement of the new cotton season beginning Sept/Oct, he lamented. He further disclosed that similarly, the monthly yarn production will also fall from 110 million kilograms to around 80 million and would further aggravate the balance of trade as textiles constitutes around 65 per cent of countrys total exports. The Chairman, All Pakistan Textile Mills Association, Sindh/ Balochistan Zone told Dawn that the government was not serious in resolving the problems faced by the countrys largest industrial sector. He said that the government has promised to give even level of field to all the players in the cotton economy and for this purpose it had allowed free import and export of raw cotton for a period of three years. However, late last year the government suddenly imposed 5 per cent regulatory duty on raw cotton imports which indirectly is providing protection to the grower, but has made the end products of textile industry uncompetitive in the world market, he added. Mr Inam-ur-Rehman further said in India raw cotton is being made available currently at Rs 1500 per maund to the textile industry but in Pakistan we have to buy cotton in the range of Rs 2300 to Rs 2400 per maund. The chairman APTMA Sindh/Balochistan Zone further said, when we talk of even level of field, wherein the textile industry is being asked to get raw cotton at international prices then the government should also ensure that the industry gets other inputs like power and raw material, as well, as taxes and duties at the same rate. Even after harvesting a good crop of 10 million bales, he said, the local textile industry is still facing the shortage of raw cotton, due to higher export commitments of around 2.320 million bales, out of which physical shipment of around 1.8 million have been already made, he maintained. He said the total domestic consumption stands to around 9 million bales but the industry, so far, could not buy more than 8 million bales owing to late steep rise in the prices of cotton. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960508 ------------------------------------------------------------------- Shaheen Air suspends domestic operations ------------------------------------------------------------------- Staff Reporter KARACHI, May 7: Shaheen Air International has suspended its domestic operations for the next two weeks to streamline and restructure the carrier. Owned by the Shaheen Foundation of the PAF, the airlines announced that the suspension was necessary to complete and finalise the purchase deal of two Boeing-737 from the Thai Airways. Both the aircraft were in its use when the domestic operations were suspended. The step has been taken to ensure that the travelling public are not made to travel on an aircraft whose ownership may be in the process of being transferred from one party to another, an airlines spokeswoman told newsmen in Karachi on Monday. She said: Arrangements have also been made to transfer Shaheen passengers to other domestic carriers, and the airlines staff will be available at all locations and airports to assists Shaheen passengers. But the aviation sources said the suspension was aimed at providing some breathing space to the airlines incurring massive losses on its domestic operations. The airlines source said the company had already laid off a substantial number of staff and issued letters to the remaining staff to go on leave-without-pay for a month. At the moment, only one private airlines  Aero Asia  is operating in the country. Operations of Bhoja airlines are also suspended for the last couple of days as two aircraft have been sent back for engine replacement. The airline is hoping to get a substitute aircraft soon. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960508 ------------------------------------------------------------------- SPI shows 0.14% increase ------------------------------------------------------------------- Our Correspondent ISLAMABAD, May 7: A further increase of 0.14 per cent in the Sensitive Price Indicator (SPI) has been reported by the Federal Bureau of Statistics for the week ended May 2, as compared to the preceding week. According to a FBS Press note, an increase of 9.13% was seen in SPI over the corresponding week of last year (on May 2, 1996, over April 30, 1995) as against 15.36% in the previous period (on April 30, 1995, over May 5, 1994). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960507 ------------------------------------------------------------------- Govt to provide financial help to sick units ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 6: The government has decided to provide all possible financial support to the sick industrial units of the private sector. Former President of the Karachi Stock Exchange, Bashir Jan told newsmen that he had attended a meeting of the businessmen with Asif Zardari here on Monday during which a decision was taken to revive the sick industrial units of the private sector. Sources said that the businessmen including Tariq Saigol, President Lahore Chamber of Commerce and Anwar Tata, Chairman All Pakistan Textiles Mills Association complained that bureaucracy was creating hurdles in implementing various decisions to revive sick industrial units of the country. Businessmen were also assured that the government would allocate considerable funds in the next financial year to help revive sick industrial units. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960508 ------------------------------------------------------------------- IMF asks govt to levy GST on all items ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, May 7: The International Monetary Fund (IMF) has asked the government to withdraw all the prevailing 181 exemptions and direct the CBR to widely impose General Sales Tax (GST) on almost every item. Informed sources told Dawn that the IMF mission led by Mr. Antonio, currently visiting Pakistan, has called for removing across the board all exemptions for effectively implementing fiscal measures agreed earlier between the two sides. It also discussed with the authorities of the Ministry of Finance and the Central Board of Revenue (CBR) to tax agricultural incomes in the 1996-97 budget, and direct the provincial governments in this regard. They told Dawn that the government would have to remove exemptions and widen the present narrow tax base. Those people who can pay and are not paying their taxes should be brought in the countrys tax net, he said. They were confident that the government would extend the GST very vigorously in the next budget to improve the economy. We have been told that GST will be imposed basically on manufacturing stages which could later be extended on retail level, he stated. Asked whether the IMF had linked its future assistance with the issue, specially the release of third tranche of 600 million dollars standby loan, he said the visiting Fund mission was still to conclude its talks to determine the issue. We have to see whether the government has met the criteria given for end-March, he said adding that it all depended on when the third tranche of 68.5 million dollars will be released. Pakistan has earlier received two instalments of 200 million dollars and 68.5 million dollars. Now each tranche will be of 68.5 million dollars, he added. Sources said that the IMF had asked the government to remove exemptions from trusts, flood relief, former BCCI foundation, hospitals and charity organisations, benevolent grants, special allowances, conveyance allowances, pensions, income on dividends, income of universities, chambers of commerce and various memorial funds. We have been asked to remove maximum exemptions in the next budget. IMF has told us that anybody who is earning something should not go untaxed, an official of the CBR said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960507 ------------------------------------------------------------------- Stock exchanges to register all public firms ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 6: The government has decided to put all public sector enterprises on stock exchanges. The decision was taken at a meeting between the presidents of the three stock exchanges and top government officials here on Monday. The meeting was attended by Asif Ali Zardari, MNA, the PMs advisor on finance V.A. Jafarey, the advisor on energy Shahid Hasan Khan, the Chairman of the Privatisation Commission Syed Naveed Qamar, the Chairman of CBR Alvi Abdur Rahim, Member Income Tax Iqbal Farid, and Additional Secretary at the PMs Secretariat Dr Waqar Masood. Insiders said that Mr Zardari told the meeting he was convinced that the demands of the stock exchanges were genuine and persuaded the CBR officials to immediately concede something to satisfy the bourses and the business community at large. And the CBR presently issued a clarification that the said business leaders would help restore public confidence in the stock market. The presidents of all the three stock exchanges later held a Press conference with Bashir Jan, former president of the KSE and appreciated their talks with the government in presence of Mr. Zardari and said the PPP government was going out of the way to support the business community with a view to promote trade and investment. The president of the Karachi Stock Exchange, Arif Habib, said the decision to enlist public sector corporations on the stock market would have a substantial effect on the economy. At present the stock market is worth 10 billion dollars which would be doubled with the enlistment of public sector enterprises. The figure would go up to 30 billion dollars, he added. One of the major things that happened today is that we have got the assurance that incentives related to security investment will not be withdrawn in the next budget, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960509 ------------------------------------------------------------------- Sheikhupura blast disrupts big rally ------------------------------------------------------------------- Commerce Reporter KARACHI, May 8: Stocks maintained their winning streak but the big rally was intercepted by the Sheikhupura bomb blast, which killed several persons. However, the KSE 100-share index showed a good fresh gain of 35.76 points at 1,761.04 as compared to 1,725.28 a day earlier, reflecting the strength of base shares. A 36 points increase in the index, showing a rise of Rs 6.3 billion in the market capitalisation has pushed the total to Rs 379 billion. The steady surge in the market capitalisation over the last five months from the low of Rs 308 billion to the current figure showed a formidable recovery and in a way reflected markets urge to behave properly but within the frame work of positive background news. In the boom conditions of early 1994 when the index has soared to 2,662 points, the market capitalisation has touched the all-time peak level of Rs 442 billion. The figure is steadily edging not to regain its previous best level but also to improve it as the Islamabad package has altogether changed the share business outlook, analysts said. News that Bankers Equity was sold to LTV Modaraba at Rs 18.50 per shares by the Privatisation Commission did not evoke much interest in the rings, although some of the leading investors sold in a bit haste. It accounted for 0.248m shares, lower by 75 paisa. An interim dividend at the rate of 20 per cent by Rafhan Maize was considered positive but omissions by Nagina Cotton and Suraj Cotton were disappointing. Big gainers were led by Shell Pakistan, which maintained its sustained upward drive on strong support at the lower levels, rising by another Rs 8. It was followed by 4th ICP on good interim dividend rising by Rs 35 and so did 8th and 9th ICP on identical reasons, closing with gains ranging from Rs 3 to 4. Other notable gainers were led by EFU, Dewan Salman, Engro Chemicals and Attock Refinery, which posted gains ranging from Rs 3 to 4. Barring Dawood Hercules, which suffered a decline of Rs 3 on renewed selling, losses were generally fractional and reflected lacked of support rather large selling. ICP SEMF, PIC, Adamjee Insurance, Burshane Pakistan, Philips, Telecard and Sitara Chemicals were among the other losers falling by one rupee to Rs 1.50. Lucky Cement topped the list of most actives, up Rs 1.25 on 4.810m shares followed by PTC Vouchers, higher Rs 2.10 on 2.750m shares, Hub- Power, firm Rs 1.60 on 1.110m shares, D.G.Khan(r), steady 40 paisa on 0.530 m shares, ICI Pakistan, unchanged on 0.312m shares, Dhan Fibre, firm 30 paisa on 0.507m shares, and Dewan Salman, higher Rs 3.50 on 0.290m shares. There were several other notable deals also. Trading volume rose modest to 17.773m shares from the overnight 12.156m shares thanks to active buying in Lucky Cement. Both PTC and Hub-Power were again traded on spot basis having negative impact on the total volume. There were 304 actives, out of which 102 shares, while 135, fell with 67 holding on to he last levels. DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* DAWN FACTS Another first from the DAWN Group of Newspapers --- the people who brought you the first on-line newspaper from Pakistan --- comes DAWN Facts, a new and powerful Fax-on-Demand service, the first service of its kind in Pakistan, giving you access to a range of information and services. Covering all spheres of life, the service arms you with facts to guide you through the maze of life, corporate and private, in Pakistan. With information on the foreign exchange rates, stock market movements, the weather and a complete entertainment guide, DAWN Facts is your one-stop source of information. DAWN Facts is available 24 hours a day, 7 days a week! 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EDITORIALS & FEATURES

960503 ------------------------------------------------------------------- ... We can do so little ------------------------------------------------------------------- Ardeshir Cowasjee OCTOGENARIAN Nusrat Ashraf, for many years, lived peacefully in her home on Chaudhry Khaliquzzaman Road, with her man-servant, Wazeer, and her menagerie of cats, birds, ducks, goats. At 1730 hours on April 15, 1996, a gang of ruffians, male and female, allegedly led by Nuzhat Fatima, Yousuf Chandio and Menhal Khan, broke into her house, assaulted her, dragged her from her bed and out of her house, manhandled her servant, bundled them both into a car and drove them to the Sabzi Mandi area where they were locked in a dingy room in a ground-floor flat. Immediately after the abduction, a demolition team arrived on the scene and proceeded to ruthlessly rob, ransack and raze the humble home. Nusrat Ashraf was born in the house of her father, Sardar Mohammed Ashraf, a former administrator of Poonch, Kashmir. The family moved to Karachi after partition and scholarly Nusrat, fluent in Persian, read history under the tutelage of Dr Mahmood Hussain, Vice-Chancellor and Professor of Karachi University, completing her M.A. in 1952. In 1953, she took up a teaching career and taught Persian, and at times history and English, at the Frere Road Government College for Women. Nine years later, the august and honest body of the Karachi Development Authority by their letter 158/6373 dated 21/9/62 was pleased to allot D Category Plot No. 4, Block No. 8 of Scheme No. 5, admeasuring 970 square yards, to Nusrats brother Sardar Abdul Latif Khan. Payments were duly made, Latif Khan took possession of his plot, built upon it a small house, and moved into it with his sister. Brother Latif died some time in the late 1970s, and Nusrat, his heir and successor, stayed on in the house. Soon after, having completed 25 years of college teaching, she retired and started private tuition at home. Nusrat had a mali, Mistri Javaid Alam, to whom she allowed the use of part of her compound as a nursery. By the late 1980s, as property prices rose steeply and neighbouring residential properties were converted (some legally, many illegally) into commercial properties, the land mafia were eyeing Nusrats plot and devising ways and means of grabbing it. They did manage in the early 1990s to inveigle the mali into their net. Details of various moves to evict her made by the land mafia are hazy, as all Nusrats papers, her collection of rare books and all her belongings were robbed or destroyed with her house, and following the assault and abduction her memory has been badly affected. What is available on record are the print-outs of three mutation orders concerning Plot No. D-4, Block 8, Scheme 5 made by the Directorate of Land Management of the KDA. Order 337 of 14/9/95: Advises transferee Nusrat Ashraf F/H (father/husband) Sardar Mohammed Ashraf Khan that By this order the competent authority has been pleased to transfer/mutate the occupancy/leasehold rights of the above noted plot in your name by way of Mutation by Inheritance on the same terms and conditions on which the plot was originally allotted to Sardar Abdul Latif Khan. The Allottee/Last Transferee/Mutatee  Sardar Abdul Latif Khan. Order 338 of 14/9/95: Advises transferee Mistri Javaid Alam (mali) F/H Veer Uddin at House No. 4, Block 8, Kekashan, Clifton, that the competent authority has been pleased to transfer/mutate the occupancy/leasehold rights of the above noted plot in your name by way of Mutation by Registered Sale Deed on the same terms and conditions on which the plot was originally allotted to Sardar Abdul Latif Khan. On the print-out can be seen an apparently latertyped contradictory statement signifying that the plot is mutated through Nazir of Civil Courts of District South, Karachi ... as per decisions and orders of the Honourable Court of IV-Senior Civil Judge at Karachi South in Suit No. 858/1994. The Allottee/Last Transferee/Mutatee  Nusrat Ashraf Alias Bibi. Order 339 of 14/9/1995: Advises transferee Haji Menhal Khan F/H Haji Karam Khan Jatoi of 298 Tekri Colony, Bath Island, Clifton, Karachi, that the competent authority has been pleased to transfer/mutate the occupancy/leasehold rights of the above noted plot in your name by way of Mutation by Registered Sale Deed on the same terms and conditions on which the plot was originally allotted to Sardar Abdul Latif Khan. The Allottee/Last Transferee/Mutatee  Mistri Javaid Alam. A Note reads: This Transfer/Mutation has been effected through Attorney Muhammad Yousuf F/H Dahni Buksh Chandio. All three mutations were made the same day, without notice to Nusrat, and are, prima facie, malafide and without lawful authority. The men in charge of the KDA at the time were: Minister Pir Mazharul Haque; Director-General Ahmad Hussain; Member (Land) Shah Mansur Alam; Director (Land) Shakil Hashmi; Additional Director (Land) Azam Leghari. Complicity? Conspiracy to defraud? Fraud? The police have a copy of a conveyance deed executed on the morning of April 15, 1996, the day of the abduction and demolition. The sellers mentioned therein are Haji Minhal Khan, son of Haji Karam Khan Jatoi, of 298 Bath Island, Karachi; Faiz Ahmad, son of Wasi Ahmed and Nuzhat Fatimas brother, of 71/13, 5-6 Area, New Karachi. The buyers are said to be Waseem Yousuf, son of Mohammed Yousuf and brother of cricketer Salim Yousuf, of 30-B Khayaban-e-Shamsheer; Mrs Ayesha Jamal, wife of Brigadier Farooque Afzal, Brigade Commander, Badin; Vishan Das, son of Versimal Das, Penthouse 3, Jason Coastal View, Block 3, Clifton. According to the deed, the land has been sold at the rate of Rs 1,804 per square yard. The market value is estimated to be ten times that amount. The buyers and sellers were aware at the time the deed was signed that the property was occupied, yet it states that the sellers have agreed to sell, grant, transfer, convey and assign said property with peaceful physical vacant possession. As soon as the deed was executed, the sellers and/or the buyers moved to forcefully and unlawfully evict the lawful owner and occupier of the property. Their chowkidars, supplemented by armed guards from the Muhafiz Security Agency, now guard the debris. As said, one of the white-bearded wizened Pathan chowkidars (claiming to be in his early 30s), despairingly looking at the rubble, Ye Angrez ke zamana mey kabbi nahi hota. And what happened to aged Nusrat Ashraf? Her plucky manservant managed to escape from the Sabzi Mandi flat and raise the alarm. Some friends and neighbours, army officers amongst them, sought help. The Commander 5 Corp, Lieutenant-General Lehrasab Khan, pressed the police into action. Nuzhat Fatima was apprehended, and some stolen property and fire-arms recovered from her flat (she has been arrested and is still under custody). She confessed that after the servant had escaped, on April 16, the panicky abductors had taken the injured and ailing Nusrat and dumped her in the North Karachi Edhi Centre, where she was registered as a destitute unknown person and given the number 87,139. Completely disoriented, she was unable to tell Edhi who she was. Servant Wazeer identified her on April 22 and she was taken to the home of an equally aged friend, Bibi Shahbobo, where she now rests, physically and mentally shattered. She is unaware that her house no longer exists, she enquiries frequently about her birds and animals, worrying that they are not being fed and looked after, and repeatedly requests that she be taken back to her own home and cease being a nuisance to her friend. A most distressful situation for all. Goom-shud: Mistri Javaid Alam, Minhal Khan Jatoi, Yousuf Chandio, Faiz Ahmed, Waseem Yousuf, Vishan Das, Ayesha Jamal. To use journalistic language: The police suspect foul play. The newly formed pressure group, Citizens Voice (Chairman, Fakhruddin Ebrahim, Vice-Chairman Abdullah Memon, Secretary-General Nazim Haji) has stepped in to help recover Nusrats property and to rehabilitate her. The plan is to plead Nusrats case in the High Court and Supreme Court. Fukhruddin knows how slow our courts are and Abdullah, a retired provincial home secretary, knows how corrupt and inefficient the administration and police are. Luckily, Nazim is still young, energetic, and optimistic. But this is no ordinary case. An aged citizens rights have been violated, she has been bodily assaulted and abducted, she has been evicted and robbed. This surely falls within the scope of public- interest litigation. The new permanent Chief Justice of Sindh could perhaps be persuaded to take suo moto action, which may hurry the process. The army, also responsible for the safety of the citizens of Karachi and to whom magisterial powers are available, could also be approached. We, who care, must all now adopt the favourite maxim of Professor Sir John Golding who died last month: The greatest of all mistakes is to do nothing because we can do so little. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960505 ------------------------------------------------------------------- Holidays galore ------------------------------------------------------------------- Omar Kureishi ESTIMATES vary from Rs 30 billion to Rs 80 billion as being the losses sustained by the country as a result of the spate of holidays. It is, of course, not possible to put a precise figure but no one disputes that the losses were astronomical and not many, it seems to me, are particularly alarmed by it. It must be borne in mind that the country was shut down, not because of strikes or disturbances or natural calamities but because standard or regulation weekends became linked to Eid and May Day on either side with a solitary working Thursday in between, sticking out like a spoilsport and which was duly ignored through the simple expedient of people just taking the day off. Thus, effectively, there were nine consecutive holidays, something that would surely find an honourable or a dishonourable mention in the Guinness Book of Records. As someone said to me, it was one of those freak sort of things. The first reaction should have been that no poor country can afford to shut down and down tools for so many days. But thats theory. In practice only a poor country can afford it. No rich country can for it would soon cease to be rich. A poor country really does not care about being poor. I would not presume to speak for anyone else but by the time the second holiday rolled along, I was bored to tears. Karachi is not exactly a city meant for leisure though it is not wanting in excitement but its the wrong kind of excitement as my friend Kunwar Idrees will testify, as indeed will all those others who have been held-up, burgled, had their cars snatched, to say nothing of those who have been caught in the cross-fire of encounters and ended up as corpses. For the main part, I stayed at home and because there is a limit to how much television a person can watch, I turned to reading. I re-read Graham Greenes The Human Factor, re-read Voltaires Candide and started on a book called Anyone But England by Mike Marqusee who is an American and has written a book on cricket that many consider better than C.L.R. James Beyond a Boundary. I had met the author in Lahore during the World Cup and we had lunch and he had promised to send me a copy of his book, a promise he duly fulfilled. But I also went through my own book The System which is a selection of columns I wrote between 1983 and 1988. I wanted to see how those columns would stand up, whether they were outdated because this is 1996 and the world should have moved on and along with the world, we as well. I was surprised that most of the columns would pass as being topical. It was a depressing discovery. The characters had changed but had been replaced by characters who were exactly the same. Thus, the more it changes, the more it changes to the same thing. By way of an example, I wrote on August 24, 1986 about news management. I cannot recall what disturbances had taken place but they must have been serious enough to be blacked out! Sounds familiar? This is what I had written: The BBC may not be the last word on objective reporting but they have built up a reputation for credibility. For at least being there with the latest news. What is being proved by blacking out the disturbances? That they are not happening? Surely the public cannot be judged to be that innocent or naive. That these events (tumultous, if by tumultous is meant disorderly and agitational) are so unimportant that they do not constitute hard news? Then why is the world media covering them? I went on to write: The physical fact of certain events taking place cannot be suppressed or shut out. The transistor radio has made news management impossible. By moving the dial on your radio you can get, not one, but several versions of the same event as you tune in to the capitals of the world. This was 1986. To the transistor radio can now be added satellite television. I first learnt of the bomb blast in Bhai Pheru on CNN. I doubt very much that PTV would have interrupted a programme to give us a news flash about the bombing. Of course things were not helped by the fact that there were no newspapers for two days and one depended either on PTV or looked for some crumbs on BBC or CNN. Indeed there was a longish report on the bomb blast in Bhai Pheru on CNN the next day but there was no mention in the report that the Prime Minister had rushed to the scene of the blast and had visited the injured, a surprising lapse from such a reputed news channel. But the column that attracted me and which I wrote in August 1986 was about the suicide of an elderly couple, Gul Mohammad and Inayat Bibi in Lahore. The dead couple were being harassed by CIA officials who had gone to the familys home in connection with an alleged theft by one of their sons and had demanded Rs 7000 as the price for not taking their daughters to the police station. The elderly couple knew too well what the threat meant. They did manage to raise Rs 4000 (through the compassion and generosity of neighbours) but apparently the officials demanded full payment. The couple chose to hang themselves, literally choosing death before dishonour. There were demonstrations by thousands of people in the vicinity and an inquiry was ordered. It is not surprising that no inquiry was held and if it was, it is not known whether any action was taken. My guess is it got buried, much the way the elderly couple were buried. Sounds familiar? Just shows you what one can dig up if one has time on ones hands. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- And corrupt how? ------------------------------------------------------------------- Ayaz Amir ONLY for a brief moment did it look as if Prime Minister Benazir Bhutto was ruffled during her anodyne and rather dull interview with Riz Khan of the CNN and that was when, apropos of corruption, he suggested that according to some people her government too was corrupt. But recovering quickly she went onto the offensive and with a straight face rattled off a list of claims as a counter-blast to the corruption charge. Before each claim she would ask the rhetorical question And corrupt how? She had told her ministers they were not to take bank loans. And corrupt how? Her government had reduced the budget deficit by 20 per cent. And corrupt how? Her government had got MOUs (those strange beasts of whom so much has been heard and so little seen) worth 20 billion dollars. And corrupt how? followed by another staggering claim. What Riz Khan made of this superbly-tailored performance I cannot tell but it is perhaps not far-fetched to say that it left the ordinary Pakistani viewer (from the imperial English-speaking classes, that is) a trifle dazed. Far be it from me to say anything about the honesty or corruption of this government. We have a funny situation in Pakistan. Not only are the most improbable allegations easily made. The most credible charges, for which there may be a wealth of circumstantial evidence, are also easily denied. You can make the most wild charges and be certain that some of them will stick. By the same token stories of wrongdoing or corruption which may even be well-documented are all the more easily denied, usually with the straightest face in the world, because of the absence of any system of institutional accountability (as opposed to the selective witch-hunts beloved of Pakistani governments when they want to settle scores with their opponents). In any case, the flimsiest and indeed the funniest defence that Pakistani officials  political, military or bureaucratic  can adopt in the face of corruption charges is to say that they are innocent because nothing has been proven against them. As I have had occasion to mention before in this space, nothing except tax evasion was proved against Al Capone. So where does this leave us? All of us in Pakistan know that we live in a society which is corrupt to the core, where the giving and taking of bribes is not only a way of life but the only or at least the most efficient method of doing business or getting any work done. The criminal justice system does not move without influence or graft. The revenue system does not deliver unless you make the appropriate payments which have become so entrenched in our culture that to question them  that is, to question what the patwari and the tehsildar expect  is to commit a grave form of heresy. In our public examinations the grand business of cheating has acquired institutional forms, which may perhaps be a good thing because at least we are building some institutions. The barest mention of giving jobs in government service, the government still being the largest employer in the country, on the basis of merit elicits immediate laughter. All this and more is not only true but part of the new folklore of our land. Yet the paradox remains that in this country dedicated to corruption everyone is officially honest because no one, except the occasional bumbler, ever gets caught and no one ever is formally charged with corruption. The PPPs opponents can lay claim to sterling honesty because nothing has been proven against them and the PPP can do much the same because when the wheel of fortune turns, as it must, and those who are up find themselves down, nothing will be proven against them. The great mugs in this game of course are the people of Pakistan who have been waiting for a new dawn for the last 48 years although now, such has been their hard education,much of their historic romanticism which in the past has made them glorify knaves and scoundrels has been dumped by the wayside. The typical Pakistani voter today is accordingly more cynical and clear-sighted than his forbears ever were. He casts his vote for the same set of politicos not because he is benighted but because he has no choice. Nor is all the impoverishment of Pakistani politics the fault of the political establishment alone. An idealist can no more survive in the grim waters of this politics than the weak- livered teetotaller in a drinking saloon. This is one of the problems which Imran Khan will face till the gods or Sir James Goldsmiths millions come to his rescue and set the dry tinder of Pakistani politics on fire: the typical Pakistani voter, having seen and heard everything, has no further stomach for brave words and good causes. Talk of a jaundiced eye: that is what the joys of inflation and the ostentatious ways of the political establishment have given the ordinary Pakistani. Just as gamblers or traders usually do not operate on trust and prefer to see the colour of your money before doing business with you, the ordinary Pakistani citizen who does not own a car, does not have air-conditioning and whose children do not speak English with him at home has been beaten by hard experience into looking wanly and sceptically at pulpit and platform-mounters who promise to save his soul. But if there is no institutional accountability in Pakistan  which simply means that if proof of wrongdoing or corruption exists against someone, an independent body looks into the charges, as is currently happening in India  public opinion, even if it can do nothing tangible, is a stern judge of public reputations. Reputations, whether for good or ill, are built slowly but once formed are fixed in stone. About some people in public life the impression of honesty prevails; about others an impression of dishonesty and trickery. Those figures who command public esteem are immune to the effects of official calumny or propaganda. Those who fall into the second category can do what they like  visits to the Holy Land, tear-jerking speeches  without getting any closer to public favour. Ayub Khans reputation was destroyed by his sons, and even though what they did scarcely compares with the more exalted standards of today, the damage to his reputation caused by the acquisition of Gandhara Motors has not been softened by the passage of time. General Yahya Khan may have been accused of many things but corruption was not one of them. Therefore, despite the break-up of the country which took place during his stewardship, the charge of minting money is not laid at his door. Bhutto was many things to many people but even in the catalogues of his enemies he is not accused of being a corrupt man. As for Zia-ul-Haq, despite all his avowed piety, the image of him that persists in the public mind is of a devious and crafty man. Nawaz Sharifs prime ministership was dogged by charges of conflict of interest, admittedly not an easy concept for Pakistans civilian and military rulers to understand. Benazir Bhuttos first stint at the top (I here step on coy ground) gave her government a reputation for graft and ineptitude. Her second coming as prime minister (I again take refuge behind circumlocution) has not erased that impression. Reducing Riz Khan to silence is a commendable achievement. By the time the Prime Minister had finished with him he had nothing to say. Or, since he is an intelligent man, he preferred to be guided by his discretion. But what about the more important forum which the Prime Minister must conquer if she is so worried about public perceptions of her government: the bar of public opinion? No amount of interviews with the CNN will wash the impression about her government which has got hold of the public mind. Every time stories or rather hints (because during the past one year most newspapers have learnt to prize discretion above valour) about high-level corruption appear in the Press, every time the TV cameras pan the inside of the Prime Ministers house which may be anything but not a monument to austerity, and every time President Farooq Leghari returns from another of his strenuous pilgrimages to the Holy Land, public cynicism takes another jump. So what is to be made of the refrain And corrupt how? It is a fine piece of rhetoric but it leaves a never-ending cackle of ghostly laughter behind. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960508 ------------------------------------------------------------------- A liberal, forward-looking & modern state? ------------------------------------------------------------------- Tahir Mirza LAHORE: A meeting of the executive committee of the Golden Jubilee Celebrations held in Islamabad on Sunday reportedly discussed steps aimed at projecting Pakistan as a modern, forward-looking and liberal Muslim state on the occasion of the countrys 50th anniversary. Did any of those attending the meeting ask how does one project a society or country as liberal and modern when it manifestly is not? It is not a question of what should be the ideal state of affairs or what indeed the government wants the country to be. It is a simple matter of being honest with oneself. Liberalism is not sitting in your club or drawing room and having a few drinks and listening to Nusrat Fateh Ali or Faiz. Some of the politically most reactionary people indulge in such luxuries. Liberalism is an attitude of mind, and despite the fact that the average Pakistani has a fairly liberal outlook on life, looking around you it is difficult to believe that you live in a liberal or enlightened society. There are many reasons for this, not least being the protection afforded to a minority  the anti-liberal elements  during our long bouts of dictatorship. As democracy gets more entrenched, society is bound to become more open and tolerant of dissent of every kind. But at present the minority holds the power to terrorise and its views get disproportionate publicity in large sections of our press. How can you call a society liberal where even officially, from the president downward, the intelligentsia is urged not to express views different from the Establishment line on national affairs such as Kashmir? Or where anyone championing the cause of the minorities or the oppressed is considered to be a heretic to the cause? Or where, in cases of reporting of rape incidents in some newspapers, it is difficult to discover whether the reporter concerned is on the side of the victim or the perpetrator of the deed? Or where a dedicated and selfless person like Akhtar Hameed Khan can be dubbed a blasphemer for a poem he wrote for children? In Lahore, we have seen how advocate and human rights activist Asma Jahangir has been harassed and her family actually subjected to an attempt to murder. She has gone blue in the face declaring in statement after statement that she is not a Qadiani, yet we still have headlines in the newspapers repeating charges that she is, most recently in the Saima case. And even if she is, how does that reflect on her uprightness or her professional competence? Sir Zafrulla Khans dedication to Pakistan was never questioned because of his faith. It was also alleged that Saima was a classfellow of Asma Jahangirs daughters and had been influenced by them. The allegation was reproduced in bold headlines. The lawyer pointed out in court that one of her daughters studied in England and the other was too young to go to a college, upon which the person making the allegation admitted that he might have been wrong. But in the meantime the desired impression had been created. The effect that pronouncements by fanatical elements and the subsequent publicity given to them can have on indoctrinated minds should not be underestimated. When those who had attempted to break into Asma Jahangirs house were interrogated, they had admitted that they had been led into believing by a book they had read that she was worthy of being eliminated. Asma Jahangirs is one instance, and she gets more attention because she is articulate and socially prominent. There are advocates who suffer the same kind of pressure if they agree to take up a case which runs counter to religious or political or other vested interests, but who do not make an issue of it for obvious reasons. The ever-present danger is that some bigoted person may actually believe some of the things loosely said against political or human rights activists and take the law into his own hands. After all, Manzur Masih was summarily despatched in a modern version of cowboy lynching. That is why the newspapers should be far more cautious when reproducing allegations that impinge on someones faith. Threats from powerful political or landed parties can have the same result of silencing anyone standing up to them. A society which is still so viciously feudal and oppressive as ours can hardly lay claim to being liberal. Look at some of the criticism levelled against Imran Khan. The charge that he is a Zionist agent has been repeated ad nauseum. He can be attacked on several counts, but this particular allegation only shows a woeful inability to argue the case against him on sound political grounds, of which there are many. A senior columnist who had so far been assiduously building up the former cricketer as our saviour has expressed his disappointment over the fact that Imran Khan did not, in his news conference announcing the setting up of his Justice Movement, refer even once to Islam or the Pakistan ideology. And it is not just a matter relating to religious bigotry or minority rights or plain fanaticism. There is so much more that is wrong with us. UNESCO has just reported that Pakistan ranks 78th in the index of universal primary schooling among 87 countries with a population of over one million, 90 per cent of its rural population does not have access to sanitation facilities, and safe drinking water is not available to 65 per cent of its rural and 11 per cent of its urban population. A liberal and modern state? Somebody must be joking. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960509 ------------------------------------------------------------------- Reflections in the tax mirror ------------------------------------------------------------------- Sultan Ahmed CONFLICTING signals are being sent in respect of the quantum of additional burden the budget, to be presented on June 12, will place on the people. Mr V.A. Jafarey, Adviser to the Prime Minister on Finance, spoke of a very tough budget on his return from Washington where he negotiated a stand-by deal with IMF for 600 million dollars which carries rigid and extensive conditionalities. Commerce Minister Chaudhri Ahmed Mukhtar, who is heading a three- minister cabinet committee on taxation, says it will be a little tough. And the Prime Minister has opposed harsh taxation and suggested some relief to the salaried class. Simultaneously Chaudhri Mukhtar whose committee is to submit its report to the cabinet on May 20, has spoken of revolutionary changes in taxation as well as reduction in the tax burden by the year 2000. Surely if the tax base is broadened and more and more people, now exempt from taxation, are made to pay as their large incomes warrant, the higher levels of taxation can come down. It all depends on how much of its recommendations the Cabinet accepts and finally how much of that the ruling Party supports and the National Assembly approves without excessive commotion. While the government is committed to raise net additional revenue resources to the extent of 1.4 per cent of the GDP, which is estimated at between Rs 30 and 32 billion, and could mean heavy and sweeping tax levies, the PM is keen to avoid its political backlash or giving an opportunity to the opposition to aggravate the popular discontent. So with her solicitude for officialdom, which is becoming increasingly manifest, she wants the salaried class not to be burdened more, and instead given some relief. What she has in this area is a kind of Hobsons choice. Either she has to increase the salaries of the 3.3 million government employees or give them tax relief. So she is reported to have suggested raising the income tax exemption levels to Rs 75,000 from Rs 50,000. That would give the salary-earners a relief of Rs 2,500 which seems a sizable sum. And along with that the exemption limit for the non-salaried, too, has be raised from the current Rs 40,000. But will the salaried class be the net gainers when along with that General Sales Tax of 15 per cent is levied on most of the items now exempted, particularly at the import and manufacturing stages, and finally that comes down to the retail level as well? The government now talks of 9 per cent inflation rate after it had been 13 to 14 per cent last year, but the consumers are not prepared to accept such statistical jugglery as the markets tell an entirely different story in respect of food, rent, transport etc. Food prices have gone up following the increase in support prices for wheat, rice, sugarcane and the minor crops. And imported vegetables are costing more than the locally produced ones whose prices have also shot up following the shortages. Sugar prices have jumped from Rs 13 to Rs 19 within a short span of time and imported sugar may cost more. Diesel prices were raised twice last month and petrol prices too were revised upwards. The power rates are scheduled to go up soon, making everything produced or traded to cost far more. All these are price multipliers and the claim of a nine per cent inflation in the face of such a trend is a lot of moonshine. The issue is what kind of a balancing act the Finance Minister will come up after it had been honed by too many officials and softened by too many vested interests? The government is committed to abandon to the 10 per cent regulatory duty on all dutiable items it imposed on October 28 as well as bring down the average level of import tariff to 50 to 55 per cent from the current 65 per cent. The additional taxation has to be enough not only to make up for both the losses but also earn additional revenues of Rs 30 to Rs 35 billion, which means hefty taxation of an unbearable kind. The proposed levy of sales tax on a large number of items at the import and manufacturing stages may bring in Rs 20 billion. That means other kind of taxes has to be levied on other goods and services. The PM is reported to have suggested the level of additional taxation should not be above the last years level. Last year additional taxes of Rs 16.3 billion were levied, and the budget deficit left at 5 per cent of the GDP instead of the 4 per cent as wanted by the IMF. Angered by that, the IMF discontinued assistance to Pakistan under its Extended Structural Adjustment Facility offering 1.5 billion dollars. The government then came up with a mini-budget and devalued the rupee by 7 per cent, and lowered the budget deficit to 4.6 per cent on October 28 under a standby deal with IMF to obtain 600 million dollars within 15 months. The government can make its budget-making exertions less arduous if it would tax the agricultural rich as well as reduce or eliminate tax exemptions to varied classes and groups who are equally rich. How can the farmlords decline to pay income and wealth tax in a period when they are having peak cotton and wheat output as well as a good rice crop? Support prices of these items too have gone up. And if sugar production dropped this year, very high prices were obtained for the cane produced, and the cane farmers are delighted. If still they do not pay proper taxes that is grossly unfair. At a time when no one in the government is talking of an expenditure cut, a major cut has to come in the shape of reduction in the debt servicing cost of Rs 157.3 billion which has increased following the devaluation of the rupee by 11 per cent so far. If the sales proceeds of the privatisation done so far, including 868 million dollars from the sale of PTC shares abroad two years ago, and the income from the proposed privatisation of larger units, are used to cut the debt, the debt servicing cost can come down drastically. That is a must now. The IMF too demands that but without insisting forcefully. When the government is talking of removing tax exemptions all around and imposing 15 per cent sales tax on far too many items, it is not talking of removing tax exemptions of the top leaders, members of the National Assembly and Senate and provincial assemblies. In fact most of them dont pay income tax either as landlords or as members of assemblies and ministers or advisors to the PM. Surely, if sales tax exemptions on essential goods for the poor and low- income groups should go, so should the tax exemptions of the rulers, and members of the Parliament as well as the provincial assemblies. Their pay and allowances and various costly perquisites keep on increasing, and they dont have to pay tax. In fact recently chief ministers of provinces were added to the list of President, Prime Minister, governors and services chiefs who are entitled to import a limousine tax free in each term of office. What earthly justification is there for such tax exemptions and incentives to import a foreign car when the country is producing some excellent cars, like the Honda and the Toyotas for the affluent. In India some top persons in authority are entitled to import cars, unlike others, but they have to pay full import duty. Hence they import small cars and not the super-luxury kind. Look at some of the rich organisations like the PIA with its too many privileged officials, inclusive of the chairman and managing director which creates a needless and uneasy diarchy and boosts the expenditure on those offices. The Anti-corruption committee headed by Senator Malik Qasim has been looking into the malpractices in PIA following a large number of complaints and found massive tax evasion by its privileged officers. It sees no reason why the PIA pilots should be exempt from their large flying allowance. It also found that while the basic pay of its senior officials was taxed, thrice that amount paid as allowances and perquisites were not taxed. The FACC has been taking up the issue with the PIA management and the Central Board of Revenue but without notable success as the same pattern is followed by many other organisations where the cost of the perquisites exceeds the basic pay many times. The fact is that the basic pay was kept low and taxable and the varied perquisites, including large amounts for books and magazines, at a time when the peak income tax level was 66 per cent and not 35 per cent plus surcharge of 10 per cent as it is now. Now that the tax rate has come down, and is likely go down further, there is a strong case for increasing the basic pay in all such organisations and reducing the tax- exempt perquisites. In fact the right approach at a time when the rulers as well as others are talking of the globalisation of the economy is to fall in line with the Western pattern where all employees from top to the bottom are paid clean pay and nothing else. It is left to the employee or managers in the US to have the kind of cars, homes or other perquisites they like instead of such facilities plus domestic servants, drivers and other personal staff provided to them cost-free and be abused. Such a practice will also increase the national savings instead of letting our officials waste a great deal, in fact far in excess of the permitted. A recent report of the Income Tax Department in respect of income tax paid by MNAs, Senators and MPAs from 1985 to 1993 showed that 142 or 70 per cent of them paid no tax at all, and 32 paid less than Rs 5,000 and at least 13 of the ministers did not pay any tax. Does a parliament whose members, save some exceptions, do not pay taxes on their incomes have a right to tax the people, come up with additional taxation year after year, and make life too expensive and difficult for others? Does it not create a climate in which tax evasion becomes not only the norm but also morally vindicated, particularly when so little or nothing is available to the tax-payers in return for the taxes they pay? Article 25 of the Constitution says: All citizens are qual before law and are entitled to equal protection of law. But the reality is contrary to that, more so in the sphere of taxation.

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SPORTS

960509 ------------------------------------------------------------------- Inter-School sports fiesta in city from 14th ------------------------------------------------------------------- Walter Fernandez KARACHI, May 8: The District South Administration has chalked out an elaborate programme in collaboration with the Director of Schools (Karachi) to hold Inter-School sports competitions for both boys and girls in 10 disciplines from May 14 to 18 in its jurisdiction. The Deputy Commissioner (South), Mr. Arif Elahi, an ardent sports enthusiast, alongwith his band of ADM, ACMs and SDMs has for the third time this year decided to translate the Government of Sindhs directive in its true perspective, to promote sports at the grass-root level in a city, where such activities have been put on the back-burner for a considerable period of time. The entire District South Administration has been spurred on by the active and industrious support extended to them by the Governor of Sindh, Mr. Kamaluddin Azfar and Chief Minister Syed Abdullah Shah. The disciplines for boys to contested are in cricket, hockey, football, cycle race, swimming, basketball, table tennis and athletics and for the girls, competitions will be held in the disciplines of throw-ball, badminton, table tennis and athletics. Mr. Arif Elahi at a Press briefing at a local hotel here on Wednesday said: We have made arrangements to stage all these events in top-class venues around District South so as to give the school boys and girls the feeling what it is like to participate in high class arenas. As we have drawn entries from about 50 boys schools and at least 40 girls schools in District South, the competitions should not only turn out to be lively but also hugely competitive, added Arif Elahi. Besides, attracting entries from all the government schools in District South, we have for the first time been able persuade the reputed private schools in our vicinity to come forward and joint this sporting extravaganza for school children, stated the Deputy Commissioner. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960505 ------------------------------------------------------------------- Wasim to skipper team till the end of next season ------------------------------------------------------------------- Samiul Hasan KARACHI, May 4: Wasim Akram said he has been officially informed by concerned authorities that he will lead the Pakistan cricket team on a 72-day tour of England comprising three Tests, an equal number of limited overs internationals and nine three-day games against counties. Akram, who is in town, when contacted, said: I have been told by the Pakistan Cricket Board (PCB) officials that they have retained me as captain. From now on, I will start thinking as captain regarding the ploys to be used in England. The dynamic allrounder said he was informed about the assignment on Friday when he was called to attend first preliminary round meeting of the Selection Committee held at the National Stadium, also attended by Chief Executive of the cricket board, Arif Abbasi. Arif Abbasi, later in the evening, confirmed that Wasim Akram will lead the team. There was no dispute about captaincy. He (Wasim) was only unavailable for a few matches and therefore, the vice-captain took over. Now he is in top playing condition so all the things fall back to their original places. The Chief Executive also cleared the air regarding the management of the Pakistan team. Intikhab Alam will continue as manager while Salim Yousuf will be the associate manager. It has been decided by the Executive Council. There was never any confusion in the minds of the Councillors about their earlier decision. Akram, who missed the crunch match against India at Bangalore in the World Cup quarter-final because of injury and then skipped the tours of Singapore and Sharjah, said he was told of the job when he informed the board after he gave his fitness and availability for the England tour. I have let the PCB know about my availability though I have not started training, Akram said. Akram said as far as his opinion on the composition of players, the team will include five seamers and two spinners. The rest is yet to be decided. We have to decide if we need an extra wicketkeeper or not or how many openers or middle-order batsmen we need. Akram stressed that a few youngsters had a very good chance of making to the final 16. I cant tell you who will they be but Salim Elahi and Saqlain Mushtaq will certainly be there. Akram was straightforward when asked if fitness will also be judged before the team for England will be picked. Fitness will be one of the key criteria for selection. If Inzamamul Haq is having knee problem, then he has to assure the board that he will fully fit. We cant afford to take players who become a liability on the team. Meanwhile, Chairman of Selectors, Dr Zafar Altaf, speaking from Islamabad, said his committee was looking beyond the England tour. We have a very hectic schedule next season and we fear that a few players may even burn out. Therefore, it will be necessary that we see a good number of players and try to select a couple of them if possible. We have to be ready for periodic replacement of the players. We (selectors) are of the unanimous opinion that since the 1999 World Cup will be held in England, we pick those youngsters, especially batsmen, who are really outstanding so that they are there when that event is played. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Ball-tampering row revived by UK tabloid Press ------------------------------------------------------------------- Athar ALi LONDON, May 5: The ball-tampering controversy has been revived by the British tabloid press as Pakistan prepares to our England once again in the second half of the current cricket season to play three one-day internationals and three Tests. The Mail on Sunday took the lead by publishing extracts from Test umpire Don Oslears book claiming that he has revealed explosive new evidence which threatens the fragile peace between the two countries in the build-up to the three-Test series. The former Pakistan Test captain, Asif Iqbal, described the efforts at souring the forthcoming Test series as shameful. Such trash, he told Dawn, should now be thrown into the dustbin. The Mail on Sunday is promoting Don Oslears book  tampering with Cricket  in which he suggests that Waqar Younis and Aqib Javed have both been involved in illegal practices. He also claims that Imran Khans admission that he only used a bottle-top to alter the ball on one occasion was not correct. he accuses him of using other methods of roughing the ball. The timing of the publication of Don Oslears book, and its serialisation by The Mail a few weeks before the arrival of the Pakistan cricket team is being seen as part of a campaign against the visitors. In the extracts published by the newspaper today Don Oslear refers to a match between Warwickshire and Sussex at Edgbaston in 1983 which he was umpiring. Imran bowling for Sussex took 6 wickets for six runs in 23 deliveries. Don Oslear says that the ball after Imran handled it looked disfigured and he reported the matter to the Test and County Cricket Board. It did not occur to Don Oslear at the time that fingernails or some other instruments might have been used to disfigure the ball. In those days he only knew about lifting of the seam. It is only in recent years that I realised exactly what had been going on. In my opinion the ball had been interfered with to a considerable degree and there is no way the damage could have been caused by fingernails alone. I am in no doubt that an instrument of some description like a mini-screwdriver must have been used to cut the stitches. Don Oslear views Imrans statement about using a bottle-top with some scepticism, for this is not the only means by which a ball can be tampered with. What kind of example does that set to the 90 per cent of professionals, who try their hardest within the laws, to young players or school children learning the game. He says that he has raised the issue again because he feels it is his duty to see that the game is played by the rules. If the players and administrators want to change those laws then let them. In the second extract from Oslears book, reproduced by The Mail the former umpire recalls the Headlingley Test in 1992 when he was acting as the third umpire to Ken Palmer and Nervn Kitchon. He is angry that no action was taken against 5the Pakistani bowlers when the ball was found to be tampered with. I believe stronger action should have been taken. He claims that at the end of the 1991 season he had pre-warned the TCCB officials that unless the issue was tackled there would be hell to pay when Pakistan came over in 1992. He writes that between July and August 1991, he had filed three reports to the board over ball-tampering, all concerning Waqar Youniss club, Surrey. Don Oslear holds Younis responsible for the violation of rules and says that he had warned him at least on one occasion. Commenting on Don Oslears statement, Asif Iqbal finds the timing chosen for the publication of the extracts by The Mail as intriguing. He said that the ball-tampering controversy, which marred Pakistans 1992 tour of England, should have been dead and buried. It is shameful to liven it up once again when Pakistan is about to visit England. Such trash is for the dustbin, he said. Asif Iqbal pointed out that stalwarts like Ian Chappell and others have been bold enough to single out Waseem Akram and Waqar Younis for having perfected, the art of reverse swing. They have said that ball-tampering accusations against there were a load of rubbish. Asif Iqbal also referred to some recent reviews about Danny Morrisons reverse swing in the West Indies vs New Zealand series. There was no mention of ball- tampering or cheating. Why then, Asif Iqbal asks, cheating is linked only to Waqar and Waseem? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960504 ------------------------------------------------------------------- Need to fill gaps in our cricket ------------------------------------------------------------------- Khawaja Fariduddin A hectic one day cricket season covering the first half of 1996 has come to an end. It started with the World Cup, then followed the Singer Cup and finally the Sharjah Pepsi Cup. Apart from the consolation of winning the Singer Cup, Pakistans cricket might was soundly thrashed and outclassed in the World Cup and also in the Pepsi Cup at Sharjah. We were thrown out by India at Bangalore in the quarter-finals where the controversial performance of our cricket team continues to confound millions of cricket fans in Pakistan. At Sharjah we could not even make it to the finals after being restricted by South Africa for 171 in the first pool match and then suffered further humiliation in the second match with South Africa thus allowing India to make it to the finals. One of the obvious steps which our Board should take now is to first of all have a regular fully fit captain for our cricket team. Wasim Akram unfortunately does not meet the requirements of captaincy for the simple reason that he has been having, obviously and admittedly, medical problem for the last few years. A regular fully fit captain is as such the first and foremost requirement of any cricket team. Repeated absence of a captain due to fitness or whatever reason breaks the rhythm and momentum of the team. The balance is disturbed and confidence of the team is shaken. Wasim Akram should know and acknowledge that due to his injury problems, the team as a whole is not performing to its potentials. He should himself voluntarily step down in favour of Aamer Sohail who is showing signs of developing into a good Captain. Above all, Aamer Sohail compared to Wasim Akram is far less injury-prone and is therefore available as a regular captain. Further, Aamer Sohails performance in the World Cup, Singer Cup and Pepsi Cup fully justified his appointment as a regular captain. As regards our current cricket teams strength, while our bowling with Wasim, Waqar, Aqib Javed, Mohammad Akram, Ataur Rahman, Mushtaq Ahmed, Saqlain Mushtaq looks formidable, it is the batting which is a cause for concern. Our batsmen have not performed consistently. Their performance is erratic. There is an urgent need to look for new talent specially to replace Ramiz Raja and Basit Ali who have not been performing too well. To a great extent fitness and fielding go together. We were perhaps one of the most unfit and one of the worst fielding sides in the World Cup tournament. Instead of improvement the standard of our fielding has progressively declined. In comparison to South Africa and Sri Lanka our fielding and fitness at best can be rated as Club class. Special intensive emphasis is required in this area. The Board therefore has a job on hand as well as an opportunity to rebuild the Pakistan team. A regular fully fit Captain, new batting talent, a couple of genuine all-rounders and above all players in the prime of physical fitness were needed to triumph against England in England this summer. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960505 ------------------------------------------------------------------- Manzoor to have two assistant coaches ------------------------------------------------------------------- Walter Fernandez KARACHI, May 4: The 1984 Los Angeles Olympic gold medalist Mushtaq Ahmed and former international and international umpire Iqbal Bali have been appointed assistant coaches for the National hockey camp which begins serious business here at the Hockey Club of Pakistan (HCP) from Sunday morning. This was disclosed by former Pakistan captain and Olympian Manzoorul Hassan, who is the Chief Coach. Mushtaq Ahmed, who is employed by United Bank, one of the countrys top hockey outfits, was a dashing inside-left in his halcyon days. Pitifully, for Mushtaq at that point in time, there was tremendous competition as Pakistan was blessed with two great inside-lefts in former Pakistan skipper and coach Hanif Khan and another former Pakistan coach Saeed Khan thus, not allowing him to fulfil his true potential. Iqbal Bali, before representing the country in international hockey donned the colours of former National champions, the National Bank of Pakistan (NBP) team. Unfortunately, Balis career was cut short in his prime by a nasty knee injury and the same problem caused his premature retirement as an international umpire. The National hockey camp is being held in the city for two four-nation tournaments to be staged in Europe in the month of June. One, is slated to be held at Milton Keynes (England) from June 13 to 16 while the other is chalked out for Amstelveen (Netherlands) from June 19 to 23. At the conclusion of the last tournament, the Pakistan squad will return home to start final preparations for the 1996 Atlanta Olympic Games hockey event scheduled to get under way from July 20 and conclude Aug. 4. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960509 ------------------------------------------------------------------- Jinnah Foundation tennis ------------------------------------------------------------------- Sports Reporter KARACHI, May 8: Twenty-four teams have entered to compete in the fourth Jinnah Foundation Professionals and Executives Amateur Invitation Tennis (Doubles) Tournament which gets under way here tomorrow (Thursday) at 5 p.m. at the Karachi Gymkhana hard courts. The three-day tournament, instituted by the Jinnah Foundation, mainly for professionally qualified men and corporate executives is to provide them healthy sports competition as well to seek their financial support through sponsorship for raising funds for meeting the needs of the suffering humanity. Briefing newsmen here today at a local hotel, Mr Liaquat H.Merchant, Managing Trustee of the Jinnah Foundation and chief organiser of the tournament, stated that the foundation is running the primary Health and Education Centre at Bhitai Colony, Korangi, for the needy people and raising of fund is one of the main objectives of the tennis tournament. We expect to raise about Rs 15 lakhs, Rs five lakhs more than last years tournament, he added. The response for participation in the mens doubles tomorrow has been highly encouraging and this year the number of participating teams has also been increase to 24. Last year 20 teams competed in the tournament, he said. Mr Kamal Merchant said the fund raised will also be used for adding more facilities to the centre as we owe great responsibility to serve the suffering humanity as they looked towards the well-to-do people to solve their problems. It is a noble cause and the Jinnah Foundation, established in 1989, is making its own contribution to serve the humanity in education and health. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960506 ------------------------------------------------------------------- Quaid volleyball gets going today ------------------------------------------------------------------- Farhana Ayaz ISLAMABAD, May 5: The four-nation Quaid-i-Azam International Volleyball Tournament gets underway tomorrow at Liaquat Gymnasium with Pakistan Greens taking up Iran in the opening match following a change of original schedule that provided rest to the Sri Lankan side due to arrive in the capital on Monday morning. Talking to this correspondent Ch. Yaqub, president Pakistan Volleyball Federation (PVF), stated that Sri Lanka will reach Islamabad on Monday and were scheduled to play the inaugural game at 4.p.m. the same day against Pakistan Greens. We decided that it would not be fair to them to play after having travelled during the night, Ch. Yaqub said. The decision, it seems, has come on the part of the volleyball federation as no such request was made by the island federation. This would also be responsible in the wholesome change of the earlier schedule. A new programme of the single-league tournament was being prepared by the federation. Meanwhile, India returns to Islamabad after the 1989 4th SAF Games spellbinding volleyball finals at the very Liaquat Gymnasium hall when Pakistan came back from two games down to win the gold in style in front of a jam-packed 10,000 capacity gathering. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960505 ------------------------------------------------------------------- Pakistan to participate in 5 events in Olympics ------------------------------------------------------------------- Sports Correspondent LAHORE, May 4: Pakistan will participate in the events of hockey, boxing, athletics, swimming and probably rowing in the Olympic Games being staged at Atlanta from July 19 to Aug 4 this year. Pakistan Olympic Association (POA) Secretary General Mohammad Latif Butt in an exclusive interview that entries were being sent in the above- mentioned sports by May 15 as had been required by the Organising Committee of the Games and the International Olympic Committee (IOC). He said the Government had sanctioned three million rupees in the 1995-96 budget for preparation and participation of the Pakistani contingent in Olympics. Another amount of one million rupees would be given in July. Giving details of the preparation of the contingent, the POA Secretary said that the hockey team qualified for winning the World Cup title at Sydney in 1994. It was following its own schedule of training. The 16- member Pakistan hockey team was expected to visit Canada and America to play some practice matches there before moving over to the Olympic Village on July 9. The POA was making payment for the hockey teams stay at Atlanta from July 9 to 14. It wanted to reach Atlanta early for acclimatisation. The venue of hockey competition was quite near to the Olympic Village. While replying to a question, Mohammad Latif Butt said that four Pakistani boxers had also qualified for the Olympic Games by performing well during the qualifying competitions held in different countries of Asia.

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