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DAWN WIRE SERVICE
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Week Ending : 12 December 1996 Issue : 02/50
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===================================================================
Problems overcome, polls on schedule
CJ hints at deciding fate of 8th Amendment
Benazir alleges conspiracy to harm PPP
No corruption complaint against Bhutto, Nawaz: Afridi
Asif not to contest poll
Ghinwa rules out mending fences with Benazir
13 corruption cases in OGDC sent to FIA
FIA files references against CDA chief
Benami deal of Legharis land justified
I was not told by police before the action was planned
Chaudhris, Sharifs not defaulters
PML-N invites other parties for alliance
US author fears of third force
---------------------------------
WB wants 40pc cut in staff of banks, DFIs
Rupee revalued by 2.5% against $ in one month
The 13th faultline in the economy
New accounting device to camouflage losses
List of 40,000 defaulters to be disclosed next week
Exports fall 1.2% in Nov. despite devaluations
KSE index likely to breach 1,400 points barrier
---------------------------------------
Less blemished than them Ardeshir Cowasjee
The Pakistani tango Mazdak
Poor water resources to cause food scarcity Editorial Column
Electoral reforms: some suggestions Safdar A. Butt
-----------
Pakistan win 2nd one-dayer, series against N. Zealand
Pakistan defeat Australia 4-2 in Champions Trophy
Bowlers have tough task ahead, says Akram
Malik withdraws from trip, back problem for Inzamam
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961212
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Problems overcome, polls on schedule
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Bureau Report
ISLAMABAD, Dec. 11: Defence Minister Shahid Hamid said the caretakers had
surmounted most of the difficulties and elections would definitely be held
on schedule.
Making a statement in the Senate, the caretaker defence minister dispelled
the impression created by remarks of a US official that Pakistan might not
be able to hold election on Feb. 3.
He denied reports that the caretaker Foreign Minister, Sahibzada Yaqub
Khan, during his meeting with US Secretary of State Warren Christopher had
talked of some difficulties faced by the caretaker government, which might
lead to the postponement of elections.
He said the government recently promulgated Representation of People (4th
Amendment) Ordinance and all members on the election commission had been
appointed. Thus, most of the difficulties in the way of holding elections
on time had been removed, he added. Elections shall be held on Feb. 3, he
said in categoric terms. There should be no misgiving or doubt that the
caretaker government would put off the elections.
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961211
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CJ hints at deciding fate of 8th Amendment
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Nasir Malick
ISLAMABAD, Dec. 10: The Supreme Court said it might give an authoritative
judgment on the issue of the 8th Amendment deciding whether or not the
amendment should remain part of the Constitution.
A former member of the National Assembly, Mahmood Khan Achakzai has also
filed a petition in the Supreme Court challenging the 8th Amendment.
His attorney Qazi Jamil the Supreme Court bench that he could wait for the
hearing of his petition and instead the petitions of Ms Bhutto and the
Speaker should be heard first.
During the hearing, the chief justice asked Abdul Hafeez Pirzada, who is
assisting the court as amicus curiae, whether the Indian Supreme Court had
struck down any constitutional provisions.
Pirzada said that the Supreme Court had recently struck down a
constitutional provision for all practical purposes when it declared that
Article 209 would prevail over Article 203-C as the former article was
incorporated by the chief martial law administrator through 8th Amendment
and that the latter article was enacted by the framers of the constitution.
These articles related to the powers of the president in the appointment of
judges in the Federal Shariat Court.
Mr Pirzada submitted that the 8th Amendment had changed the basic structure
of the constitution from the parliamentary to presidential form of
government. He referred to Article 90 where, before the 8th Amendment, the
executive authority of the federation vested in the prime minister.
However, after the amendment, this power was vested in the president.
He regretted that at least one government of Nawaz Sharif enjoyed two-third
majority in the parliament but did not repeal the 8th Amendment.
He said articles 238 and 239 which relate to bringing amendments in the
Constitution have been altered in such a manner that now it has become
difficult to amend the Constitution. Mr Pirzada said the original provision
provided passage of an amendment by two-third majority in the National
Assembly and absolute majority in the Senate. But now two-thirds majority
was required to change the Constitution. Pakistan may be among the 10 top
countries where it is difficult to amend the Constitution, Mr Pirzada
added.
The chief justice expressed his intention to hear the petition filed by Mr
Mahmood Achakzai as this was the main cause of the dissolution of
successive assemblies in the country. He told Qazi Jamil that the court
could go into this issue and give its decision.
Justice Syed Sajjad Ali Shah said that all these cases involved very high
law points. He said the court would take up the case of Benazir Bhutto next
week, though the grounds of the dissolution would also be contested by
Mohajir Qaumi Movement (MQM) which has requested the court for making it a
party to the case.
Hafeez Pirzada explained difference between inherent and permissive
fundamental rights. He said the speaker had no fundamental right to
approach the court when his tenure or his assemblys tenure is cut short by
the prime minister himself. If he has no right when the prime minister
dissolves the assembly he cannot have a right to directly approach the
Supreme Court when the president exercises his constitutional powers, he
said.
Mr Pirzada said if at all there was anybody who had a right to approach the
court directly was the prime minister because in a parliamentary form of
government the prime minister represents the entire nation.
Hafeez Pirzada said it was provided in the principles of policy that the
president and the governor would lay a report on the implementation of the
principles of policy before the assembly but regretted that this was not
done.
When the chief justice asked whether the court could be approached for non-
implementation of principles of policy, Mr Pirzada said the court can even
issue mandamus (a command of the court to an official to fulfil his legal
obligation).
Mr Pirzada also referred to Indian Supreme Court decision in a case where
four state governments had moved the Supreme Court against the declaration
of the home minister dissolving the state assemblies on the grounds of
fundamental right violations and invoking the original jurisdiction of the
court.
He said the issues in those petitions were similar to the one raised in the
speakers petition.
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961206
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Benazir alleges conspiracy to harm PPP
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Staff Reporter
KARACHI, Dec. 5: Deposed prime minister Benazir Bhutto alleged that the
presidents men were negotiating with the imprisoned criminals belonging
to the Shaheed Bhutto and Altaf groups for their release, on the condition
that they would attack PPP leaders and disrupt its meetings.
Ms Bhutto said when such elements, most of whom were Indian-trained, would
be released on such conditions, peace would be endangered as well as the
life and property of the common man. They would not only attack PPP
leaders but there would be an increase in bomb blasts and bank robberies.
The deposed prime minister said: I am shocked to see that the Presidents
men were negotiating a deal with the Indian- trained criminal elements in
their anti-Benazir obsession.
Replying to a question, Ms Bhutto said not all the elements of MQM were
involved in criminal activity and that her government had always emphasised
this point in dealing with the MQM. In this context she said that her
government had released some MQM activists in August on assurances from
their parents that in future they would not indulge in criminal activities.
The PPP chairperson unleashed a tirade against the president and demanded
his trial because he had failed to prove any of the charges mentioned in
the proclamation of dismissal, despite a lapse of one month. she said
adding that if Ehtesab is intended it should begin with the president
because serious charges have been levelled against him.
She alleged President Farooq Leghari was spearheading the group which had
conspired to eliminate the PPP and the Bhuttos from the politics of
Pakistan and set up a kings party.
Ms Bhutto alleged that she was being threatened that if she did not succumb
to pressures, Asif Zardari could face the gallows. She said that her
brother Murtaza was killed by the anti- Bhutto forces to get her government
out and implicate her husband to pressure her for accepting the fait
accompli.
Ms Bhutto said she could not expect justice in the Murtaza case as long as
President Leghari was at the helm of affairs.
Ms Bhutto challenged the president and her opponents to prove the
allegations that she or husband owned the Surrey mansion or owned any
mansion in France or elsewhere, or had sold out Gwadar or Chakwal. Now I
am not in the government, why they have not yet proved any of the
allegations they had unleashed through the press to generate hatred against
my government and the party.
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961209
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No corruption complaint against Bhutto, Nawaz: Afridi
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Bureau Report
ISLAMABAD, Dec. 8: Accountability cell set up at the interior ministry has
so far not received any complaint of corruption against the deposed prime
minister Benazir Bhutto and PML(N) president Mian Nawaz Sharif, caretaker
Interior Minister Umer Afridi said.
The minister said that the caretaker government in its anti-corruption
drive has so far arrested 24 persons including Asif Ali Zardari. Only Asif
Ali Zardari and Ahmed Sadiq were in detention under MPO-16 while the other
22 have been challaned and booked in specific cases, he told Dawn.
The minister disclosed that the four officers of Private Power and
Infrastructure Board (PPIB) including Dr. Waqar and Anis have been
challaned and booked in regular cases. Their cases would be referred to the
Ehtesab Commission soon after the completion of the investigation, he
added.
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961207
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Asif not to contest poll
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Staff Reporter
KARACHI, Dec. 6: Former investment minister Asif Ali Zardari will not
contest the forthcoming elections, said a PPP Press release.
The Press release said as Asif Ali Zardari has been placed under illegal
detention with a view to hindering his political activities, he has decided
not to contest the elections.
The spokesman, however, refuted reports that the central executive
committee of the party had decided that Zardaris would not be given tickets
to contest the next elections.
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961208
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Ghinwa rules out mending fences with Benazir
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Staff Correspondent
ISLAMABAD, Dec. 7: Ms Ghinwa Bhutto, chairperson PPP (SB) group ruled
out any possibility of rapprochement with Benazir Bhutto, and said there
was a strong likelihood that she herself would contest against the
ousted prime minister in the next elections.
Ghinwa accused her sister-in-law Benazir Bhutto of creating
circumstances which led to the murder of her husband. If Benazir Bhutto
believes that there was a conspiracy against her brother Murtaza then
she should have provided protection to him, she said.
The PPP (SB) chairperson also rejected the ousted prime ministers claim
that President Farooq Leghari was behind the murder of Murtaza and said
that Benazir Bhutto should have investigated it when she was the chief
executive of the country.
She said at one stage there was a possibility of a rapprochement when
she had asked Benazir for help but instead of helping me and arresting
the culprits who masterminded the brutal murder of Murtaza, she started
to defend the police party which was directly involved in Mir Murtaza
Bhuttos murder. She hoped justice would be done to her by the tribunal
investigating into the murder of Murtaza Bhutto as changes have been
made in the investigation team.
Ghinwa also claimed Benazir Bhutto has refused to recognise the rights
of Murtazas widow and his children to the familys assets.
When asked from where she intends to contest next elections, Ghinwa said
that there was strongly possibility that she might contest against
Benazir Bhutto from Larkana. However, she said that the final decision
on the allocation of party tickets would be made by her partys Central
Committee. She declared that PPP (SB) will contest elections from all
the constituencies and even against Benazir Bhutto.
Our channels are open for election alliance with all political parties
including MQM but not Benazir, she said and hoped that elections will
be held on time. She asserted that accountability must be held.
Asked about her political future in Pakistan as she faced problem of
language, Ghinwa said that she was not worried at all on this count
because she was surrounded by good and experienced people like Meraj
Mohammad Khan. No other member of my family will join politics as my
children are very young. We have provided a platform so that good, clean
and new faces should enter politics through this forum, Ghinwa added.
She said her purpose was not to go after power. However, Ghinwa said she
was keen to use this platform basically for those founder members of the
PPP who have been mind and soul of the party. We have always advocated
that Begum Nusrat Bhutto should be made chairperson of the party but
Benazir had dismissed her and now Begum Sahiba is being used against
us, she maintained.
Responding to a question, Ghinwa said she has immense regards and love
for her mother-in-law and her children were also missing her very much.
Begum Sahiba is the main source of consolation for us after Murtazas
death, she said.
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961206
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13 corruption cases in OGDC sent to FIA
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Bureau Report
ISLAMABAD, Dec. 5: The Ministry of Petroleum has referred 13 cases of
corruption and irregularities in the Oil and Gas Development Corporation to
the Federal Investigation Agency (FIA), caretaker Petroleum Minister Javed
Jabber said.
In one occurrence, a proposal to undertake a study with an estimated cost
of 2.394 million was moved and approved on the same day. The proposal was
initiated by the Hydro Carbon Development Institute and it was passed by
the ministry on the same day with out observing the normal procedure, he
said.
The contract was eventually awarded to a company named IPR. The minister
himself did not know what IPR stands for. When asked about the actual name
of the company, he said the full name of company was not mentioned in any
document.
In another case the former OGDC chairman Rifat Askari ordered the purchase
of vehicles. Pir Koh Gas Limited on the verbal orders by the chairman
allocated an amount of Rs 7 million. The vehicles were purchased, but the
OGDC subsidiary from whose account the amount was withdrawn got no vehicle,
he said.
When asked whether these vehicles had been used in the election campaign of
Azad Kashmir legislative Assembly, he replied with a broad smile. He said
the corporation had also borne huge expenses of maintenance and fuel of
these vehicles.
Mr Jabbar said the cases of allotment of LPG quota in violation of the
rules was also being referred to the accountability commission.
Earlier in the Senate he presented a long list of companies and individuals
issued LPG quotas. Names of Mansoor Leghari a close relative of President
Farooq Leghari and two ministers in caretaker cabinet were also included in
the list.
President Farooq Leghari he said has given clear directives that the
accountability should be carried out without any discrimination. The
president has said that there are no relatives and friends when it comes to
review of cases, he said.
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961208
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FIA files references against CDA chief
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Staff Correspondent
ISLAMABAD, Dec. 7: The Federal Investigation Agency on Saturday sent two
more references on corruption to interior ministry for forwarding them
to Chief Ehtesab (accountability) Commission (CEC) for accountability.
Sources in the FIA said that both the references relate to former
Chairman Capital Development Authority (CDA), Shafi Sehwani. These
references are based on the charges mentioned in two separate FIRs
earlier lodged against him.
So far the FIA has forwarded references to CEC against four persons. The
earlier three references filed related to ex-minister Haji Nawaz
Khokhar, ex-Chairman OGDC Rifaat Askari and former principal secretary
to deposed prime minister Ahmed Sadiq.
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961209
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Benami deal of Legharis land justified
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Bureau Report
ISLAMABAD, Dec. 8: The Mehran Bank Commission had refused to entertain the
audio-cassette evidence and affidavit of Hamid Asghar Kidwai, a main
witness in the Mehran Bank scandal, who lives in self-exile in London,
because his affidavit had not been attested by the high commission then.
The commission exonerated President Farooq Leghari but it did not mention
to whom the land was sold by the president for Rs15 million and from which
account the money was debited to make the payment.
The land price was transferred from the accounts of unknown buyers in
Mehran Bank in Karachi to the presidents account in Mehran Bank, Lahore.
Pakistan Muslim League(N) had then accused that the payments to the
president were made by Younas Habib through front men.
There is no doubt that the president and his co-sharers in the ancestral
land had sold such land and had received the price thereafter (Rs15
million) .... Such a sale cannot be considered a dishonest transaction
unless there are circumstances indicating dishonest or illegal acts, the
report said. It is the confirmed opinion of the commission, based on the
evidence before it, that the allegations against the president are
unfounded.
The report has justified the Benami account from where the president
received the money. In our country Benami transactions are common and had
been recognised by the courts, and a seller of a property sometimes does
not know nor is supposed to know who are the real purchasers, so long as
the price paid is fair and the transaction is fair, the report said.
The inquiry report, released on Sunday by the press information department,
surprisingly does not mention where it had been printed.
Three out of five members of the judicial inquiry commission had refused to
entertain the audio-cassette and affidavit of Mr Kidwai, however, two of
the members of the commission, its chairman Justice Abdul Qadeer Chaudhry
and Justice Z.A. Channa, had agreed to place their reliance on the cassette
and affidavit but the three members did not agree.
The cassette, released by the PML-N to establish that many politicians had
been bribed through the Mehran Bank, allegedly contained secret
conversation between various beneficiaries.
The report has held Younus Habib, ex-chief operating officer of the bank,
at present imprisoned, for misusing and misappropriating huge public money.
We agree with the findings given and recommendations made by our brother
Z.A. Channa, on all the terms of Reference relating to the Mehran Bank
Limited, except that since the evidence has come on the record that Younas
Habib, the principal actor in the whole drama has misused/ misappropriated
huge sums of public money deposited in the Mehran Bank Limited, he should
be further criminally prosecuted and necessary steps for retrieving the
misappropriated amount be also initiated against him, three members of the
commission said in their joint report.
We would also suggest that in view of the increasing evidence of white
collar crimes such as bank frauds, punishment for such offences should be
suitably enhanced, of course, by making necessary amendments in relevant
law, they said.
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961211
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I was not told by police before the action was planned
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H. A. Hamied
KARACHI, Dec. 10: Testifying before the three-member tribunal investigating
the cause of death of Mir Murtaza Bhutto and seven others, Tariq Niazi,
said he as an area magistrate was not informed by the police before the
action was planned against Murtaza and his companions on Sept 20.
He said neither the deputy commissioner of district south was informed
about the planned action. The (police) did not inform me for which I cannot
give any specific answer.
Q: Did you protest about this lapse ?
A: Yes, I told the DC about it and he also said it was strange that we were
not informed.
Q: Are you aware of any inquiry held as to why the lights in the area were
switched off ?
A: No, I am not aware of any such inquiry into the incident.
Q: Did you check the daily reports of the police station to find out the
movements of the bodies ?
A: I did not, because the DC had already taken note of it.
Q: Did you visit the scene of the incident ?
A: No, because the DC had already visited the site.
Q: When you were there, why didnt you keep your eyes and ears open to see
things which were very obvious, such as noting down the numbers of
vehicles, and there were seven SDMs performing minor duties such as
providing blood, arranging for the helicopter, making efforts for search of
bodies, installing direct phone etc.
A: We were doing what the DC had asked us to do.
Q: What was the situation like at the Clifton helipad at the time of taking
the body of Mir Murtaza to Larkana ?
A: An emotion-charged crowd of 2,000-3,000 was chanting anti-government and
anti-police slogans. I could not control that crowd with the help of 30
policemen and I pulled back the police force.
Q: Have you submitted the account to any other authorities other than the
DC ?
A: No.
At this stage the tribunal felt that no useful information was forthcoming
from the witnesses and nobody wants to share such information to enable us
to come to some conclusion.
Q: When did you go to Clifton police station in search of bodies and what
did you see ?
A: The SHO was not there and the duty officer was also not there. I looked
around and there were no dead bodies there. I was told by the constables
that they might have been taken to hospital from the scene of the incident
and the other guards present there also gave the same answer.
Q: Did you check the lock-up at the police station ?
A: No.
Q: Did you check at Darakshan police station which is in the same compound
?
A: No, I went back to MMC (Mideast Medical Centre) and at that time the DC
knew that the bodies had already arrived at the JPMC mortuary.
Q: When you visited Clifton PS from MMC, did you see any obstruction on the
road ?
A: I passed through the main road and three vehicles were stranded there, a
blue Pajero, a Toyota Hi Lux and an small car. There was no traffic on the
road as it was closed, and no police vehicles either. It was darkness all
around and no lights which could illuminate the place.
Q: Did you see any dead body on the road ?
A: No, I saw pools of blood, patches of blood on the side of the vehicles
and there were no police or rangers.
Q: What did you see when you reached the hospital where you were called by
the DC ?
A: The DSP and I reached at the same time and the former asked me what was
the problem to which I replied I dont know.
I went inside the ICU and was asked to call the anaesthetist, a thorasic
surgeon and an ENT surgeon from JPMC, which I did. I saw Mir Murtaza
gasping for breath, there was a wound on his neck and he was bleeding from
mouth and nose.
Earlier, Ali Asghar Jatoi, special assistant to the managing director of
MMC, Dr Abdul Ghaffar Jatoi, was examined for about 1 hour and 30 minutes.
He said he heard the sound of gunshots at 8:35-8:45 pm and it was heavy and
lasted about 10-12 minutes. It resumed after five minutes which was lighter
and he did not visualise what had happened.
The witness, who was in his room at MMC, got down from the second floor at
about 9:20 pm and saw Dr Ejaz Shamim, RMO, standing near a patient on a
stretcher close to the lift. The patient was Mir Murtaza who had been
profusely bleeding from mouth, nose and neck, and with his clothes drenched
in blood, and was struggling to breathe.
He then made inquiries about Ashiq Hussain Jatoi, the PPP (SB) president of
Hyderabad, because he always accompanied Mr Bhutto wherever he went. His
brother, Dr Zahid Hussain Jatoi, had no knowledge about Ashiq and he was
disturbed and the witness spent the whole night in search of the man.
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961207
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Chaudhris, Sharifs not defaulters
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Staff Reporter
LAHORE, Dec. 6: Punjab PML president Senator Chaudhry Shujaat Husain claims
that neither his family nor that of Mian Nawaz Sharif is a defaulter in the
light of the new presidential ordinance. Thus, they cannot be stopped from
contesting the forthcoming elections.
Talking to newsmen, he welcomed the ordinance which amends various sections
and clauses of the Representation of the Peoples Act, saying it would be
an effective check against floor crossing and wasteful expenditure in
elections. The caretaker government, the PML leader said, had taken a step
which would have a very healthy impact.
Referring to the reports that Sharifs and Chaudhris were defaulters and
thus ineligible to contest elections, Chaudhry Shujaat said the new
ordinance negated the allegations against both the families.
Chaudhry Shujaat claimed that no government loan incurred by these families
had been written off. Thus, under the law, they could not be branded
defaulters. We dont fall in the category of defaulters. He said now
the character-assassination campaign unleashed by various quarters should
come to an end.
As for the allegations levelled during PDF rule that the Chaudhris and the
Sharifs were defaulters, Chaudhry Shujaat said these were baseless and
engineered. He claimed that the then government had created a special
situation to pin the blame on the two families. The PDF government, he
alleged, refused working capital, cash financing and some other facilities
to the industrial units of the two families and when these units were
rendered incapable of returning loans, they were declared defaulters. We
never refused to pay back the loans. We never got any loan written off,
Chaudhry Shujaat said.
He alleged that the previous government had chalked out a plan to defame
the industrialists as a class to distract public attention from the rampant
corruption in which the rulers were involved.
Answering a question, the PML leader said his party would finalise its
candidates for the national and the provincial assemblies by the time the
Election Commission announced the election schedule.
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961209
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PML-N invites other parties for alliance
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Staff Reporter
LAHORE, Dec. 8: The Pakistan Muslim League invited other parties, including
those who have been strongly criticising it, for electoral adjustments,
saying cooperation would not be possible if the opportunity was missed.
Without naming any party but leaving little doubt that he was referring to
the Jamaat-i-Islami, the PML leader said certain parties had been using
derogatory language against the PML. Still, he said, Mian Nawaz Sharif was
a large-hearted politician and was ready to have electoral cooperation with
such parties in the supreme national interests.
About the accountability, Chaudhry Shujaat said the accountability was a
permanent process which could not be completed in a single day. The
government should ensure that the process was not reduced to an eye wash.
He said his party was not afraid of any rival party or leader and it would
have no objection if President Farooq Leghari, former prime minister
Benazir Bhutto and her husband Asif Zardari took part in elections. The
people would let them know their worth.
He assured his partymen that election tickets would be awarded only to the
deserving candidates. He said Mian Nawaz Sharif had gathered all
information about applicants and he would select only those candidates who
could serve the country better.
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961210
-------------------------------------------------------------------
US author fears of third force
-------------------------------------------------------------------
Staff Correspondent
WASHINGTON, Dec. 9: US author and journalist Paula Newberg, who wrote the
famous article The two faces of Benazir Bhutto predicted that if
Pakistani politicians did not put their house in order, someone else
might, and then no one will be satisfied.
In a lengthy piece in the Los Angeles Times headlined A familys
travails threatens a nation, Ms Newberg said newspapers were openly
surmising that the military might cancel the elections scheduled for
February.
She observed that Pakistan was facing a crisis of governance. The
governance crisis has landed in the laps of the World Bank and the IMF.
Both want to balance the books by restructuring taxation and distribution
but the non-interest of the wealthy in paying taxes and the political
parties threats to scuttle any presidential commitments jeopardise this
effort.
She described Pakistan's politics as high stakes politics, saying
leaders who have not died in office have often been removed...corruption and
government instability are constant reminders that while the country has
grown exponentially and changed markedly, politics has not altered much
from the 1950s.
Ms Newberg said the confusion about the presidents intentions was
understandable. The caretakers are a motley crew, largely lacking
ideology, relevant experience or organisation. This, she pointed out,
contrasted markedly with the small cabinet of excellence assembled by
former World Bank official Moeen Qureshi in 1993 which seems to have set a
standard in the public mind.
While Asif Zardari and Ms Bhutto's other ministers were branded a rogue's
gallery of self-enriching opportunists, she said, many officials also
assumed to be corrupt, have retained their jobs. No one claims to know
fully what is happening... Ms Bhutto has quickly donned a familiar cloak of
political martyrdom...the presumption of guilt in dissolutions and
detentions is already encountering difficulties...
*******************************************************************
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*******************************************************************
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961211
-------------------------------------------------------------------
WB wants 40pc cut in staff of banks, DFIs
-------------------------------------------------------------------
Staff Reporter
KARACHI, Dec. 10: The World Bank has set a reform package for Pakistan's
financial sector seeking 40 percent cut in the workforce of major
nationalised banks and closure of 20 percent of their branches as a
precondition for the release of the proposed banking sector adjustment
loan.
Source told Dawn that the World Bank specified 21 key actions for
improving the countrys banking sector, which must be taken before the
proposed loan could be presented before its board of executive directors.
They said the deadline for taking the key actions was Dec. 31, after which
the proposed loan could be placed before the board on Jan 21. The key
actions dictated by the Bank are:
Prohibition of NBCs and DFIs from all project lending until they are
privatised or liquidated;
Change in the management of NCBs and DFIs and in the process for
selecting and firing management to insulate it from political interference
and base it solely on professional considerations;
Imposition by the State Bank of rules and guidance for the governance of
NCBs and DFIs for the period before privatisation to make certain that
their managements function primarily as caretakers focusing on recovery of
non-performing loans and preservation of assets;
Reduction in the workforce of the HBL, NBP, NDFC, and RDFC by 40 percent,
preferably through a severance payment programme, and imposition of a
hiring freeze until they are privatised;
Reduction of branches operated by the HBL, UBL, NBP and NDFC by 20
percent by closing down units according to criteria defined by the SBP, and
a freeze in the opening of new branches until they are privatised;
Recovery from the stock of classified loans (estimated to be about Rs135
billion) of at least 10 per cent, preferably from the largest defaulters,
and a quarterly target of recoveries, including through the mechanism of an
RTC.
Initiation of liquidation proceedings for IDBP with the courts;
Complete disinvestment of shares owned by the government or government
controlled institutions in the MCB, ABL, PICIC and BEL;
Sale of Habib Credit and Exchange Bank;
Submission of a satisfactory privatisation plan for all NCBs and DFIs
that includes the replacement of all classified assets, net of reserves and
capital, by fully marketable government securities at market rates with a
weighted maturity of no more than six years, at the time of privatisation,
and the break-up of the HBL into two or three banks;
Issuance of revised regulations on capital adequacy, loan classification
and provisioning and interest accrual based on international standards and
announcement of a satisfactory timetable by which all banks must comply;
Requirement for all banks to uniformly follow international accounting
standards and be audited according to international auditing standards, and
announcement of a satisfactory timetable by which all banks must comply;
Requirement for all banks to disclose provisioning, including related
adjustment in net income, beginning in 1997;
Recruitment by the SBP of an adequate number of skilled and experienced
bank examiners locally and abroad;
Abolition of the Pakistan Banking Council to unify bank supervision in
SBP;
Removal of controls on T-Bill auctions by pre-announcing volumes and
taking up pre-announced volumes;
Reduction in the liquidity reserve requirement of banks to 20 percent and
announcement of a phase-down to 10 percent of demand deposits;
Phase-out of mandatory and concessionary credits automatically refinanced
by the SBP;
Benchmarking the yields on the National Savings Schemes to market-
determined treasury bill rates;
Enactment of appropriate ordinances to ensure that selection of
management of state-owned banks and financial institutions is based on
professional criteria and that these institutions are run without undue
political interference; and to establish the autonomy of the SBP, in
particular SBPs licensing and inspection powers; and
Establishment of 35 fully operating banking courts with adequate budgets.
The sources said these actions were stated in a dispatch to the caretaker
government sent on Nov. 26 by Mieko Nishimizu, director, country department
I, South Asia Region, after reviewing the findings and recommendations of
the bank mission.
They said the caretaker government preferred to exclude the NBP from the
privatisation programme. The government also requested the mission to
minimise the lay-off of redundant employees from the NCBs and DFIs, they
added. However, the sources said, no agreement was reached on cut in the
workforce. Similarly, no agreement was reached on measures to deal with the
defaulters, they added.
Mr Nishimizu in his dispatch had urged the government to complete
negotiations on a draft loan agreement, including a letter of development
policy, by Dec. 13.
The sources said a high-level delegation, headed by the advisor to the
prime minister on finance and economic affairs, was in Washington to hold
talks with the World Bank. They said the caretaker government had already
taken certain action as described by the bank. Pakistan would take up
certain issues such as reduction in workforce and bank branches and try to
get some concessions in this regard, they added.
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961210
-------------------------------------------------------------------
Rupee revalued by 2.5% against $ in one month
-------------------------------------------------------------------
Staff Reporter
KARACHI, Dec 9: Rupee was revalued by 2.5 percent against the dollar in
kerb during the last one month as the US currency was said to be in
oversupply because of a considerable fall in ready demand.
In a related development, Foreign Exchange Bearer Certificates (FEBC), tly
traded on the open market, also eased by an identical percentage and were
quoted at Rs 105.85 and Rs 106.00 for buying and selling respectively.
The decline in value of the dollar was more pronounced during the last
three sessions as it has lost 35 paisa or over one percent against the
rupee, dealers said. Another reason behind the current fall was a
significant cut in the wedge between the official and kerb spot rates from
Rs 3.50 to Rs 2.05, leaving a little profit margin for speculative currency
traders, they stated.
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961207
-------------------------------------------------------------------
The 13th faultline in the economy
-------------------------------------------------------------------
M. Ziauddin
THE CARETAKER finance ministry is mobilising about $ 500 million through
swap arrangement reportedly at the generous rate of 22 percent. This
would effectively devalue the rupee by at least 8 percent.
Meanwhile, the caretaker finance ministry advisor, Shahid Javed Burki has
announced the good tidings that the UAE government has expressed its
intention of making available to Pakistan as much as $350 million in
balance of payments (BoP) support. He, however, did not say on what terms.
If one went by the record of previous governments in such cases, the
proposed balance of payment support from UAE would certainly carry an
interest rate of at least about 10 percent over Libor which would cause
further devaluation of the rupee by at least about 4 to 5 percent.
Earlier, he had informed the nation the wonderful news that the IMF had
agreed to disburse by the middle of December more than $160 million from
the suspended standby arrangement.
When newspaper reports said that, despite Mr. Burkis optimism, the Fund
would not release more than one-third of the withheld $160 million after
its Board meeting, the government in order to confuse the issue got the
local IMF office to release the following terse statement: Following
recent IMF staff talks with the Pakistani authorities, the IMFs executive
board is expected to consider an extension of the current stand-by credit,
as well as an increase in the total amount available thereunder. The board
is expected to meet in the second week of December for this purpose.
This statement gives no indication about the amount to be released
immediately after the board meeting. It only reiterated the Funds promise
to consider the request of Pakistan for an extension of the current
standby expiring in March, 1997 as well as an increase in the total amount
available thereunder.
Caretakers desperation
In the backdrop of the reassurance of sorts from the IMF and rather a
generous offer of $350 million from UAE it looked rather odd to see the
finance ministry trying to arrange a paltry sum of $500 million at the cost
of the rupees rate of exchange which has serious inflationary import.
However, this desperation on the part of the caretakers becomes
understandable if the reports that Pakistan would not get more than about
$60 million in December are true.
The IMF in its annual report issued earlier this year had asked Pakistan
(page 86) to do the following to qualify for the suspended standby
arrangement: 1. Remove regulatory duty, 2. reduce further the tariff rates;
3. impose general sales across the board (later they asked for reduction in
the highest rate to 15 per cent and the number of rates to three from
four); 4.impose agriculture tax; 5.phase out tax exemptions and
concessions; 6. rationalise military expenditure, and 7. increase the
amount in the development budget.
The package of measures announced by the previous government on October 22,
1996 and which has been kept intact by the caretakers had instead proposed
considerable decreases in the development budget (Rs 21 billion), and did
not propose any phasing out of tax exemptions and concessions, did not
decrease the highest GST rates or reduce the number of rates to three and
neither did it propose to reduce the tariff further and nor did it remove
the regulatory duty. And the package did not even mention the military
budget.
Therefore, it is assumed by some circles that the Fund despite its polite
sounds (misunderstood as approval) about the proposed package was in no
mood to bail out Pakistan at such a critical juncture in its financial
history.
Meaningful steps
The caretakers, instead of taking meaningful steps to win back the
confidence of the Fund, have effected hefty increases in the administered
prices during the first month of their three month tenure and continued to
borrow from the banking sector in the same manner as did the previous
governments.
What is keeping the caretakers from taking all those steps which the
caretaker Advisor on Finance and Economic Affairs, Shahid Javed Burki, had
listed in his article of August 24, 1995 (Dawn, A three-part plan of
action)?
According to Mr Burkis own admission (Prerequisites for development
Dawn, August 25, 1996), ...our leaders have not been able to arrive at a
political consensus without which no programme of structural reforms can
succeed. If such a consensus was not available on August 24, 1996
after nearly 50 years the caretakers can hardly hope to get one during
their limited tenure. So, the difficulty in carrying out Burkis agenda of
reforms, perhaps.
Another matter which needs to be taken notice of is Mr. Burkis stand on
military expenditure before and after he joined the government.
Before he joined the caretaker set-up he had said: However, even within
the current definition of Pakistans strategic requirements, it would be
appropriate for the military to conduct the same kind of expenditure review
on waste as is required of the civil administration. (A three-part plan of
action Dawn, August 24)
After he became the caretaker finance adviser, he told a group of economic
writers (November 30, 1996) that the matter of military expenditure should
be left to the judgment of the military strategists.
On the day he expressed his first opinion he was talking like an economic
expert with full knowledge of the thinking on this subject in the
multilateral agencies like the World Bank and IMF. But when he became a
full fledged representative of Pakistans Establishment, he spoke like a
typical politician interested only in his job, no matter even if it is only
for three months. He can now bag a lucrative international job with the
qualification of being an ex-finance adviser of the Government of Pakistan.
Military expenditure
There is no way Pakistans fiscal problems could be resolved overnight
without first rationalising the military expenditure or as Mr Burki
suggested in his article, by conducting expenditure review on waste.
Who does not know that millions are being siphoned off every year from the
military budget without let or hindrance behind the excuse of secrecy. The
commissions and kickbacks involved in military contracts are a legend
needing no proof.
This has to be looked into in order to rationalise the military expenditure
without blunting our defensive teeth.
In the same article he said: No source of income should be exempt from
taxation .... the distinction between agricultural and non- agricultural
should be done away with and the incomes that accrue from land should be
brought within the ambit of tax system.
What is stopping the caretakers from doing all this through a presidential
ordinance? Political expediency? In fact the two packages of incentives
announced by the caretakers, one for the APTMA and the other for stock
exchanges appear to be a transparent attempt to win the political support
of the richest people of this country.
If not all the caretakers, at least Mr Burki should have known that you
simply cannot revive any of the so-called emerging stock markets with any
kind of incentives after the Mexico debacle.
In the pre-Mexico days, emerging markets were considered attractive by the
international investors because they could buy big chunks of blue chips at
highly depressed prices and then do profit selling in a market going up in
response to the entry into the market of these very investors.
Most of the local private enterprises listed on Pakistani stock exchanges
are 100 per cent family owned. Therefore, even with the most attractive
incentive package, there would hardly be any noticeable activity on the
local markets.
Vibrant sectors
Further down in his August 24 article, Mr Burki discovers that there are
several other sectors of the economy which have managed to escape the
fiscal net.
These are more vibrant sectors and include such activities as small-scale
commerce and small-scale industry. Why hasnt he taxed these sectors so
far. He cannot be waiting for the restoration of the assemblies or
elections to have the relevant legislation passed. He only has three months
to do this. One month has already gone by.
On the issue of tax administration he had said: Without a credible effort
at tax collection the government will not be able to take care of the
serious problem... A relatively inexpensive project that computerised tax
collection which, in turn, facilitated the ability of the tax collectors to
undertake cross-checking of the returns submitted by the tax payers were
some of the more important elements of this reform effort (World Bank aided
reform in Argentina). So far, nothing has happened on this front too.
On the issue of State Banks autonomy, Mr Burki had suggested in writing, a
totally autonomous central bank and a politically immune governor of the
bank controlling without any interference from the government of the day,
the inflation in the country and the credit policy. So far, the State Bank
and its governor have seen no changes for the better.
The government is still resorting to bank borrowing for budgetary purposes.
Power of elite
In Mr Burkis opinion, the State Bank should not be involved in regulating
the commercial banks. For this purpose he had proposed the establishment of
a new institution that has the sole function and full authority and
accountability, and total autonomy to regulate and supervise the banking
sector.....all banks should be subject to the accounting principles being
followed by the banks in the United States.
These principles go under the title of US GAAP or generally accepted
accounting principles. Where is the proposed institution? Instead he has
ordered dismantling of the existing institution, the Banking Council, and
resorted to the same old trick of replacing one set of scoundrels (theirs)
with another set (ours) in the nationalised banks and investment
institutions.
The dozen faultlines of the Pakistani economy which Shahid Javed Burki had
so succinctly described in his first article on August 5, 1996 (Dawn), have
seemingly now been joined by one more, that is himself.
What was the purpose of writing these articles, Mr. Burki, if not to put
your sure shot remedies to work when you got a god sent opportunity exactly
three months later? Perhaps you were looking for no more than a three-month
winter vacation job.
Or perhaps you had no idea about your own limitations or the power of the
Pakistani ruling elite and the permanent establishment.
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961207
-------------------------------------------------------------------
New accounting device to camouflage losses
-------------------------------------------------------------------
Dilawar Hussain
For financial year 1995, the Investment Corporation of Pakistan (ICP)
posted net profit of Rs 93.5 million: It had actually suffered a mind-
boggling loss of Rs 233.4 million- but could avoid the red through a
timely change in accounting policy for valuation of investments.
The ICP did make provision of a huge Rs 78.5 million for diminution in
value of quoted shares, which were carried on the balance sheet at Rs
1,577.7 million against cost of Rs 1,656.3 million. But that year, the
Corporation changed its accounting policy for valuation of quoted
investments to lower of book and market value determined on aggregate
portfolio basis, from earlier policy of valuing investments individually at
lower of book and market value.
Auditors, A.F.Ferguson & Co. said they concurred with the change but
calculated that had there been no change in the accounting policy, the
profit for the year and carrying value of investments would have been lower
by Rs 326.9 million. How many of the investors out there would know that
had the financial statements been prepared in accordance with the
accounting policies consistently applied, the ICP would have been in deep
red in 1995 and the cash dividend at 12 per cent would have been in
jeopardy.
All users of financial statements and particularly the small investors in
stocks and mutual funds are not likely to be accounting experts and may not
be able to read between the lines. Many may take the financial statements
on the face value. The question then arises whether such timely
accounting somersaults that radically change the financial picture- though
absolutely by the book- do or do not tantamount to misleading shareholders?
The question assumes considerable significance as ICPs is not the lone
case. The protracted bearish spell at the stock market has forced more
companies than ever before to search for (legal) ways to skip the provision
of losses on investments and yet be able to obtain unqualified reports from
statutory auditors, certifying that the accounts present true and fair
view of companys affairs and profit for the period.
In the bull markets of late 1993 and early 1994, numerous corporate
entities with surplus cash and probably shorter foresight, diverted their
money from fixed income securities to stocks. As the shares began shedding
values, those who were quick to sense the advent of the bears, got out
unscathed or slightly hurt. Others who dilly-dallied, were badly bruised.
The investment portfolios of scores and scores of listed companies are now
worth only a shade of their actual cost. As a prudent accounting
practice, such losses due to diminution in value of investments (difference
between the cost of acquisition and market value at reporting date) ought
always to be reflected in the profit and loss accounts.
But numerous companies have engineered several ways to dodge the loss.
Thus, profits posted by such companies and certified as true by their
statutory auditors, are grossly unrepresentative of the factual position;
profits have been inflated, profits have been shown where there are none,
or even loss represented as profit. All dependent on how the company chose
to treat the all important item: diminution in value of investments.
Study of several cases- selected at random- shows that managements have
exercised several options; Some companies do account for the plunge in
prices of their portfolio, others provide only a part of the losses and yet
others have chosen to sweep the issue under the carpet.
There are apparently no guidelines from professional bodies such as the
Institute of Chartered Accountants of Pakistan (ICAP) or Institute of Cost
and Management Accountants (ICMAP)) or the corporate monitors (CLA, KSE
etc) on how companies should treat the diminution in value of investments
in their financial statements. The reference is almost always made to the
International Accounting Standards (IAS).
And IAS-25 relating to Accounting for Investments simply lays down:
Marketable equity securities should be treated at the lower of cost and
market value determined on a portfolio basis. Professional accountants
interpret the rule in various ways. It all depends on the accounting
policies of individual companies, says Suleman Lalani, Associate chartered
accountant (ACA) and secretary to a large brokerage house.
He explained that as a general rule, if the investment was for a short term
(marketable securities), diminution in value of investment ought to be
provided, while the provision could be skipped if the investment was for a
longer period. Ostensibly this is on the premise that loss would be
recovered during the term of holding of such investment.
Many companies have bent this rule to the breaking point: First UDL
Modaraba reported net loss of Rs 2.5 million for the Jan-June period of
this year. The company had invested Rs 182.6 million (at cost) in quoted
companies and modarabas. Market value, as at the close of balance sheet,
was reported to have plummeted to Rs 109.8 million, reflecting loss of Rs
72.8 million or 39.9 per cent of the actual cost.
In order to escape the provision for diminution, the company simply re-
located the investments from previously shown current assets side (as
short-term investments) to long term investments. Had the company provided
the diminution in value of investments, the profit and loss account for the
period would have shown loss of staggering Rs 70.3 million instead of the
reported tiny deficit of Rs 2.5 million. Similar accounting policy was
followed by Ibrahim Textiles Limited, which decreased its short-term
investment on the balance sheet from Rs 149.8 million at March 31, 1994, to
Rs 90.9 million at the same time in 1995 and shifted it to long term
investment, which jumped up from Rs 5 to Rs 188.1 million, thereby avoiding
the provision of loss of value of investments.
Yusuf Textile Mills had invested Rs 9.8 million in shares of associated,
Indus Dyeing & Manufacturing Company. The market value receded 55 per cent
to Rs 4.4 million, but the company did not provide for diminution and the
companys auditors raised no objection on the plea that management had told
them that these were sponsors controlling holding and as such carried much
higher value than the market price. However, when the company did dispose
off the shares in 1995, it fetched only the prevailing market price and the
company had to book loss on sale of Rs 5.4 million.
Atlas Investment Bank showed Investment in quoted shares and bonds at Rs
137.7 million at June 30, 1996; Aggregate market value at that date stood
at Rs 83.9 million; the Bank did not provide diminution in value amounting
to Rs 53.8 million, saying that it is considered temporary in the context
of the companys intention to hold these investments on a long term basis.
The entire investment in shares and bonds was shown as long term investment
with nothing of quoted stock and bonds in short term. For the 18 months to
end-June, the Bank unveiled after tax profit at Rs 15.8 million. Consider
this against the huge loss of Rs 53.8 million in the form of diminution in
value of the portfolio and how the bottom line would have looked like, had
the provision been made.
It is understandable, however, why companies with public stakes are loathe
to show diminished profits or losses replacing profits, especially banks,
insurance companies, modarabas, leasing and other financial services
companies that depend on public confidence for business. And these are the
very companies whose portfolio overwhelmingly comprise the investment in
company equities. While most leasing companies such as NDLC had as much as
60 per cent exposure in the laggard textile sector in early 1994, textile
companies with surplus funds had taken stakes in the other worst performing
sector: the modarabas. Both have come to grief.
Through the devise- though ofcourse perfectly legal- of change in
accounting policies and relocation of investments all companies
could gloss over the financial picture, but many have opted to follow the
prudent course: Crescent Investment Bank Limited provided a whopping Rs 165.3
million for diminution in value of investments against the profit for the
18 months to end-June 1996. Though this slashed the Banks 1995-96 after
tax profit to Rs 78.3 million against Rs 221.5 million for the year before,
the Bank preferred to carry the balance sheet figure of investment at Rs
840.1 million, reflecting the actual market worth of investments and not at
cost at Rs 1,005.4 million.
Securities and Broking firm, Javed Omer Vohra & Company Ltd. provided Rs
30.5 million for diminution in 1996 accounts, adjusting the balance sheet
figure of marketable securities from cost Rs 142.7 million to market value
at Rs 113.3 million. In the process, the company had to show loss of Rs 3.4
million for 1996 against net profit of Rs 1 million in 1995.
National Development Leasing Corporation (NDLC), the pioneer in the leasing
sector, posted pretax profit at Rs 83.8 million after provision of Rs 14.2
million for permanent diminution in value of investment in
July-December six months of 1995. The company had provided Rs 36.2 million
in the corresponding six months of 1994 period, making an aggregate provision
of a startling Rs 50 million to end-December 1995. This enabled the company to
show marketable securities (listed companies/modarabas) on the balance
sheet at actual market price of Rs 71.9 million at that date.
Between those who have provided the loss of value of investments in full
and those who have made none, there are companies which have taken the
middle course. The Bawany group company, Reliance Insurance Company had
investment (at book value) of Rs 32.3 million in quoted shares/NIT units at
December 31, 1995. These carried the market value of Rs 28.3 million at
that date, reflecting diminution in value by Rs 4 million. The company
provided Rs 2 million in the 1995 accounts, one-half of the actual loss of
value. The short provision, enabled the company to show 4 per cent growth
in after tax profit for the year to Rs 10.5 million from Rs 10.0 million
the earlier year. Provision in full would have resulted in showing lower
than earlier years net profit.
First International Investment Bank (FIIB) of the Babar Ali group provided
Rs 1.8 million as diminution of value in trading investment in its
latest accounts to June 30, 1996. The Bank reclassified Rs 42.9 million worth
of shares from trading to long term investment and changed accounting policy
for long term quoted investments from the lower of aggregate cost and
market value to cost contending that the management considered
that it presented a more realistic position; had the accounting policy
remained unchanged, the long term investments would have stood reduced by
Rs 19.6 million. The company however, provided adjustments of Rs 7.1
million to lower cost and market value of trading investment transferred to
long term investment.
And then there are other interesting cases as well. Prudential Stocks Fund
Limited for the six months July-December 1995 unveiled pre-tax profit at Rs
1 million. This though only a half of the profit of Rs 2 million earned in
the corresponding period of the previous year, was not remotely as poor as
it would otherwise have been had the company shown huge loss of Rs 27.5
million suffered in the diminution in value of marketable securities. The
company had stakes in marketable securities at the aggregate cost of Rs
61.1 million but at the market price on balance sheet date, the portfolio
had plunged to Rs 33.6 million.
Ingeniously, the company booked the loss of Rs 27.5 million in value of
securities, but without showing such loss on the face of the profit and
loss account. Thus securities were shown at market value on the assets side
of balance sheet and the difference between cost and market value (Rs 27.5
million) was adjusted on the liabilities side, against the small surplus of
Rs 0.9 million brought forward from previous year and leaving the balance
Rs 26.6 million as accumulated loss. By such extra-accounting
method, the company managed to book the loss on the balance sheet but at the
same time show on the profit & loss account a profit of Rs 2 million for the
six months, in place of the actual loss of Rs 25.5 million.
The question of provision of diminution in value of securities is a subject
of heated debate at meetings in numerous board rooms. The onus clearly lies
with the Corporate Law Authority and the Institute of Chartered Accountants
of Pakistan to issue unambiguous guidelines on how such losses should be
(uniformly) treated in the financial statements.
It should be specified which investment constitutes long and which short
term investments; whether a company is at liberty to dispose off long term
investments earlier than a year and would diminution in investment become
permanent and be provided for in case long term investment in a
company remains unchanged for more than three years. Also, what would be the
impact if the company does not liquidate marketable securities during
the course of an accounting year.
There doubtless is virtue in outlining such prudent accounting policies
where all losses are promptly booked, irrespective of the unsavoury impact
on the current financial statements. It has to be realised that in the
absence of accounting policy for uniform treatment, comparisons between
companies in the same sector becomes impossible and the profit and loss
accounts and balance sheets of scores of companies could be all, but
misleading.
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961211
-------------------------------------------------------------------
List of 40,000 defaulters to be disclosed next week
-------------------------------------------------------------------
Bureau Report
ISLAMABAD, Dec. 10 : The caretaker government has prepared a list of 40,000
defaulters of banks and the DFIs who would be debarred from taking part in
the election if they fail to repay their dues. The list will be made public
early next week.
Informed sources told Dawn that whosoever had taken loan of half a million
rupees or above would be subjected to strict scrutiny by the Election
Commission. The Election Commission has reluctantly accepted the
responsibility of monitoring the plan to ensure that no defaulter took part
in the February 3 polls.
Most of the politicians have received loans from the Industrial
Development Bank of Pakistan (IDBP) and face disqualification if they do
not repay their loans, said an official.
According to the latest figures, the banks and the DFIs have to recover
about Rs.130 billion most of which is owed by about 40,000 defaulters.
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961212
-------------------------------------------------------------------
Exports fall 1.2% in Nov. despite devaluations
-------------------------------------------------------------------
Muhammad Ilyas
ISLAMABAD, Dec. 11: Pakistans exports declined by 1.2 percent during
November, 1996, when compared with October, 1996, (from $666 million in
October to $658 million), in spite of multiple devaluation of the rupee,
according to official figures.
The multiple devaluation includes two major devaluations, first by 3.65
per cent in September and then 8.5 percent on October 22, which failed to
achieve any breakthrough in exports.
The import bill of Pakistan in dollar terms during a single month also
dropped sharply by 14 percent to $961 million from $1.11 billion in
October. Overall, in last five months, from July to November, the trade gap
swelled to over $1.5 billion as against $1.30 billion suffered in the same
period of 1995.
The import bill during the last five months was $4.75 billion while the
export earnings amounted to $3.24 billion. As against this, the total
imports in the same period of 1995 was $4.54 billion while exports had
fetched $2.79 billion.
In the last five months, exports rose by about 16 percent while imports
showed a sluggish growth of less than five percent, which is a key factor
to keep trade deficit within the manageable limits. Further, analysis
indicates that November witnessed a sharp drop in imports of all the
categories except chemical fertilisers and pulses, which increased by 3.82%
and 27.1% respectively.
During the five-month period of this year, the import, in dollar terms, of
machinery excluding transport equipment declined by 11.15% over the
corresponding period of last year, that of industrial raw materials
/intermediate goods including plastic material dropped by 23.9%, medicinal
products by 12.8%, iron & steel by 14.8%, synthetic & artificial silk yarn
by 2.6%, synthetic fibre by 22% and rubber crude by 9.5%.
The import of petroleum crude has dropped by 8% in quantitative terms.
There was a 24.4% increase in import of wheat. The exports dropped from
68.2% during the first five months of the previous financial year to 61.5%
in the corresponding period current year.
During July-October, 1996, the share of manufactured goods in exports was
60.2%. It dropped to 59.8% in July-November, 1996. However, when compared
with the period July-November, 1995, these categories accounted for 57.3%.
The value-added textiles improved their share in total exports from 45.8%
in July-November, 1995, to 48.4% in the corresponding period of current
year. In absolute terms, their exports stood at $1.28 billion and $1.57
billion, respectively. All the manufactured textile categories have
recorded a sizeable positive growth.
Manufactures other than textiles also increased their exports from $0.32 to
$0.37 billion. Highest increase (35%) has been registered by carpets which
fetched $67.2 million. The tarpaulin & canvas goods, however, continue on a
downward swing, suffering a decline of 37.7% in dollar terms and 27.4%
quantitatively.
Cotton yarn continued its position as the top earner of foreign exchange
about $553 million, that is 11.29% more than last year. Thus this item,
involving a nominal value-addition, accounted for 17% of total exports.
The statistics show that the rice has suffered a sizeable drop in its unit
value. The total quantity of rice exported during July-November, 1996, was
0.43 million tonnes, 3.3% less than during the corresponding period of last
year. But in dollar terms, the accrual therefrom was $141.6 million, lower
by 5.5%, as compared to last year.
As regards raw cotton, the statistics report 95% drop in exports. Only
1,232 tons have been exported this year, as compared to 25,011 tons during
July-November, 1995.
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961212
-------------------------------------------------------------------
KSE index likely to breach 1,400 points barrier
-------------------------------------------------------------------
Staff Reporter
KARACHI, Dec. 11: Stock prices eased across a broad front but selling was
not that aggressive as it has been during the last few sessions.
The index was last quoted lower by 6.99 points at 1,409.70 as compared to
1,416.69 a day earlier, reflecting the relative weakness of some other base
shares.
Floor brokers said the current uncertainty is expected to prevail until the
Supreme Courts verdict on the dissolution petitions as it will clear the
way for long-term planning. They said the sentiment in part is also
affected by the stock exchange elections due on December 15 as most of the
leading members are busy campaigning for their respective candidates.
Leading shares again finished lower but this time mostly fractionally. The
markets resistance to larger decline was led by Hub-Power, which came in
for active short-covering at the lower level and though finished
fractionally higher.
All the leading shares suffered fresh decline, although most of them
fractionally. Most of the MNCs, however, remained under pressure and fell
further by one rupee to Rs 6, the biggest fall being again in the Parke-
Davis, which had fallen by over Rs 50 during the last couple of weeks.
Others to follow it included Lever Brothers, BOC Pakistan, Reckitt and
Colman, Siemens Pakistan, Pak-Suzuki Motors and PSO, falling by one rupee
to Rs 3.
Dadabhoy Insurance led the list of local leading shares, falling by Rs 7,
followed by ICP SEMF, Javed Omer, KASB & Co, Premier Insurance, Gadoon
Textiles, Pakistan Refinery, Pakland Cement and Dewan Salman, closing with
fall ranging from one rupee to Rs 7.
A total of 40 shares were traded, out of the total 306 actives. Leading
gainers among them were Pak Apex Leasing, Adamjee Insurance, Hinopak
Motors, Dadabhoy Sack and First ICP Mutual Fund, which posted gains ranging
from one rupee to Rs 3.75.
A cash dividend of 8.5 percent from the Board of Directors of Confidence
Modaraba was good but it failed to enthuse investors. Its shares, ruling
around Rs 5, also remained dormant at Rs 5 without any transaction.
Trading volume showed a modest increase over the previous figure at 36.552
million shares as compared to 32.070m shares a day earlier, thanks to
active short-covering in Hub-Power, which was traded higher by 25 paisa on
11.335m shares. Other actively traded shares were led by PTC vouchers,
lower 15 paisa on 8.167m shares, ICI Pakistan, lower 40 paisa on 5.112m,
Dhan Fibre, off 25 paisa on 2.170m, FFC-Jordan Fertiliser, up 25 paisa on
1.8836m, and Ibrahim fibre, lower 30 paisa on 0.347m shares. There were
some other notable deals also.
There were 306 actives out of which 197 shares fell, 40 rose with 69
holding on to the last levels.
-------------------------------------------------------------------
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961206
-------------------------------------------------------------------
Less blemished than them
-------------------------------------------------------------------
Ardeshir Cowasjee
EMPIRES have been lost, countries have disintegrated, as did this country
in 1971. Kings have been crowned and deposed and beheaded. Heirs to
kingdoms have been hanged, garrotted, blinded, imprisoned, poisoned.
Leaders have been made and unmade. Politicians, men and women, have risen
and fallen.
Of late, more women have led governments in South Asia than in any other
region of the world. Now, with the dismissal of Benazirs arrogant,
autocratic, corruption-riddled government, anyone writing on feminist
history needs to take a hard look at how these women, some stupid, some
clever, have ruled.
When they burst upon the scene, the Westerners, observing them from afar,
consider them to be charismatic agents of refreshing change, banishers of
tyrannies, pure and untainted, champions of liberty and of the freedom of
the people. Most of these women have been mothers, widows, and daughters
thrust into power by pseudo-dynastic imperatives when there have been no
adequate males at hand. When the electioneering hectoring ceases, they
return to their traditional ways, laden with the baggage of mainstream
political parties and their corrupt patronage systems fuelled by long lists
of political debts.
The women learnt the rules growing up at their fathers knee or by their
husbands side. The issues are old ones, and it has been their lot to lead
some of the worlds poorest countries. Stupid or clever, they have had
little impact on economic or social problems, such as population control,
education, womens rights, human rights, and the welfare of the people
at large.
Benazir was not alone in all this. Indira Gandhi ended her long tenure in
1984 in a hail of assassins bullets, leaving a legacy of subverted
democratic institutions and bags full of dirty tricks played on her people
and on weaker neighbouring nations.
Benazir, since her dismissal, has done nothing but rant and rave, as is her
wont. All quite justifiable. After all, for the second time she has lost
the top job into which she was placed by dint of her heritage, on the
shoulders of a hanged father to whom the nation felt it owed a debt. Father
Zulfikar at least worked his way up the ladder, starting his political
career as the favourite of Iskander Mirza and his wife and, on the latters
recommendation, the former gave him a firm foothold by making him his
minister of commerce.
Benazir started her political career at the pinnacle, as a prime minister,
and as happens in countries such as ours, she was swamped and suffocated by
sycophants. Her first misadventure was calamitous, she learnt nothing from
it, and her second performance proved incalculably more disastrous, with
all her previous wrongs wildly exaggerated and increased, ending with her
bringing the country to its knees economically, politically and morally.
Apart from the country, what has she done to her children? Shortly after
her second dismissal, she told the world, on Reuters television, that she
had advised her children on how to deal with any taunts there may be from
schoolmates because their mother was no longer prime minister. She told
them to say, So what? She has been prime minister twice. How often has
your mother been prime minister? Arrogant mother Benazir felt sure that
this advice gave them a sense of relief, comfort and confidence. Was
it not grossly unwise of her, as a mother, to convey to them that the prime
ministership was her birthright, that they all would have lived happily in
the state-owned mansion for ever and ever, had a naughty, nasty man not
turfed her out wrongly and undeservedly?
Her main target has been and continues to be what she tells us she
considers to be her former lackey, her faithful number two man, whom she
only elevated to the presidency as he had promised that he would not do
what he has done, i.e. dismiss her. She forgot the old saying that the worm
often turns. She is on record as having said, in one of her wilder and less
sane moments, that had she made Ms Naheed Khan the president both she
(Benazir) and the country would have been far better off. Earlier in the
year, in an equally unbalanced Caligula-like barb directed at the
judiciary, she stated that she was contemplating making Jehangir Badar
Chief Justice of Pakistan.
The fact is that Benazir and her government are gone, and the fact is that
almost the entire country was anxiously waiting for her to go, and was
relieved when Leghari finally did his bit for the Republic and the people.
She thinks she is coming back, that she will be restored to her former
glory, but it is hard to imagine she will be brought back to continue the
rack and ruin.
Leghari acted later than he should have, many say. Whatever she may tell us
he is, he is no cattle-rustler, camel thief, or ironmonger. He was to the
manor born and is the Tumandar of his tribe. Prodded he may have been, but
he has shouldered his responsibility and cobbled together a caretaker
government, which, whatever it may be, holds at least a two-point higher
rating than did the dismissed freely and fairly elected government.
The Tumandar has been foolish in so far as the statements he has allowed
his spokesmen to issue on his behalf in response to the PPP attack upon his
having built in the Aiwan a swimming pool and installed a shooting range.
Everyone knows he is a sportsman, the man looks fit (he does not have a
bulging belly hanging over his belt), and he is quite right in wanting to
keep himself trim. As the head of state, he could hardly be expected to go
to a club swimming pool. Why could he not just have said, yes, I have built
myself a swimming pool, I need the exercise, and the pool will remain as
useful an attribute to the Presidential Aiwan long after I have gone. The
shooting range will also be there when he leaves. He is also a keen
horseman and the people would not mind him stabling his favourite charger
(just one) in the grounds of the Aiwan.
As for the 30,000 acres in Balochistan, he has done wrong. All that can be
said in his favour is that he went to court and did not just grab it. The
big question is, why did Leghari wait until he was president to act as he
did?
He and his caretakers are less blemished than those three freely and
fairly elected governments that we have had since 1988. If they can clean
up the filth and the mess while they are with us, if they can put the
country on the right track, people will forgive them for their
shortcomings. If they cannot, they should not be where they are. For the
time being, we accept most of them, but with reservation. A few are
unacceptable. However, one month is far too short a time to clean up the
dirt and to restore order. Even three months is insufficient. A job half
done is no good.
The sole purpose of the Constitution is the betterment of the lot of the
people. It cannot, in any way, be read or used to the detriment of the
people. There are three things that are sacred to a nation its
constitution, the confidence it inspires in the people, and the way it is
administered or enforced. If it can only be interpreted in the way it has
been over the past eight years, then this is not the Constitution we should
have. If this interpretation be correct, and if the Constitution can only
bring about the harm and chaos that it has, it must either be done away
with or amended and amended again and again. If it has been wrongly
interpreted and administered, then those responsible must never be allowed
to do the same again.
The caretakers should look into this and do their duty, one way or another.
They must also do their duty to see that a census is conducted and a full
accountability process undergone and executed before any further elections
are held. They must do this by legal means, or by innovating, by
improvising. They must be dedicated and determined to do what is right by
this country and its people.
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961207
-------------------------------------------------------------------
The Pakistani tango
-------------------------------------------------------------------
Mazdak
LIKE sand trickling down an hour-glass, both time and goodwill are running
out for the caretakers.
This should surprise nobody, given the disparate nature and ambitions of
the team put together by Mr Leghari and Mr Meraj Khalid. When Mr Moeen
Qureshi parachuted into Islamabad three years ago, nobody seriously doubted
his intentions of holding elections. People questioned his right to
initiate a number of steps like publishing lists of loan defaulters and
tax-dodgers, but nobody accused his cabinet of harbouring personal
political goals.
The same cannot be said of the current crew. By picking a number of active
(albeit marginalised) politicians, the PM has guaranteed that his brief
tenure will be highly controversial. Already, a number of the caretakers
are beginning to sound as though they were on the campaign trail. The Sindh
chief minister, in particular, has spotted a very real opportunity of
staying on in his office after February by cobbling together an alliance
with Ghinva Bhutto and the MQM, thus keeping the PPP out of power in Sindh.
After two decades in the political wilderness, he is determined to grab
this chance with both hands.
At the same time, the group of unelectable ministers and advisers are
pressing for accountability before elections in the full knowledge
that this would push the elections back. But although they would never admit
it, this is precisely what they want. There are thus two totally divergent
schools of thought in the caretaker team, and hence the conflicting signals
they are sending out.
Another factor compounding this confusion is the somewhat bizarre decision
to undertake nothing short of the restructuring of the entire Pakistani
economy. Although this is far removed from the original mandate of the
caretakers to hold elections and avert a looming economic collapse, Mr
Shahid Javed Burki and his band of whiz-kids have taken it upon themselves
to initiate sweeping reforms. A multitude of task forces are examining
everything from pension funds to fiscal laws. How and why the caretakers
are getting into policy decisions that will require years to implement is
not clear. Mr Burki has made several pronouncements on the state of the
economy under the Bhutto government; even if we accept his version, all we
want him to do is put the economy back on an even keel: we do not expect
him to completely overhaul it in three short months.
The recent arrest of Mr Wajid Shamsul Hasan is an indication of how
desperate this government is to somehow, anyhow, justify the extreme step
of dissolving the assemblies. Here is our accredited envoy to the Court of
St James being harassed and jailed without giving him a chance to explain.
The British detectives who were called in to investigate Murtaza Bhuttos
murder have stated that they have been paid in full, so what embezzlement
has taken place? At most, Mr Wajid Hasan may be guilty of committing a
technical accounting error, but he is no accountant. He is, however, an
upright man I have known for years, and I refuse to believe that he
unlike many in his party could have stooped to pocketing government
funds. It is disgraceful that an honourable man should be dragged through
the muck because of his political beliefs and his loyalty to the ex- prime
minister.
Indeed, by hyping up the whole accountability issue, the caretakers have
created a problem for themselves. They are discovering as many of their
predecessors did that it is one thing to know that somebody is corrupt,
and quite a different matter to prove it in a court of law. Although a
number of bureaucrats have been arrested under the conveniently vague
Maintenance of Public Order (MPO), very little hard evidence seems to have
emerged. I suspect they are being pressed to implicate Asif Zardari.
Although it goes against my liberal grain, I must confess that in this
particular case, the end justifies the means.
The post-February scenario that is unfolding seems to suggest that once
again, the establishment has deluded itself into believing that it can
control the flow and tempo of events. The game plan appears to allow the
PML(N) a plurality, forcing it to form a weak coalition government; the PPP
will be fragmented, and Ghinvas faction is expected to block the prospects
of a PPP government in Sindh. Such an outcome would permit the caretakers
to impose their agenda and ordinances on their successors through an
assertive president, an aroused judiciary and a benignly neutral GHQ.
But there is many a slip between the proverbial cup and the lip. If past
attempts to obtain positive results are an indicator, elections have a
momentum and dynamic of their own. For instance, Ghulam Ishaq Khan was as
shocked as anybody else by the PML(N) landslide in 1990. Bhutto was
positively embarrassed by the result of the 1977 election. So if the
February elections are free and fair, the caretakers should not take
anything for granted. And if Nawaz Sharif is elected with a solid majority,
he is not going to be the establishments creature. He has many scores to
settle, but he is not likely to show his hand now.
Although there are strident demands from many politicians and journalists
for both Benazir Bhutto and Nawaz Sharif to be disqualified from the
February polls, it does not seem that the caretakers have the stomach for
such an extreme step. They are well aware that without Pakistans two
political heavyweights in the ring, the electoral prize-fight will have
very little credibility within the country or abroad.
To compound the current uncertainties is the very real prospect of the
National Assembly being restored by the Supreme Court. What then? The
constitutional and political fallout of such a development is too mind-
boggling to contemplate. And yet many experts are of the view that the
dissolution of the assembly on the stated grounds was improper and not
covered by the relevant articles of the Constitution. Unpalatable though it
may be, corruption and inefficiency on the scale we have recently witnessed
do not provide an excuse to dismiss the government.
It seems that we are once again dancing the Pakistani version of the tango:
one step forward and two steps back.
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961208
-------------------------------------------------------------------
Poor water resources to cause food scarcity
-------------------------------------------------------------------
Staff Correspondent
ISLAMABAD, Dec. 7: Pakistan may have to resort to food shedding, in
addition to electricity load-shedding, by the year 2010 unless timely
action is taken to conserve its water resources, former WAPDA Chairman
Engineer Shamsul Mulk has warned.
Delivering a lecture at the Centre for Nuclear Studies here on Saturday,
he attributed the threat of serious food shortages in the foreseeable
future to the twin menace of population explosion and pollution which
had reduced the per capita availability of fresh water in Pakistan from
5000 cubic meters in 1951 to 1200 cubic meters in 1996.
If the present trend of uncontrolled population growth continues, Mr
Mulk apprehended, the availability of fresh water would further drop to
700 cubic meters by 2020, making Pakistan a water-scarce instead of a
country with adequacy of water resources.
In this context, Mr Mulk noted that the Indus River Basin had the fifth
largest catchment area and that Pakistan had the largest contiguous
irrigation system in the world. With the worlds largest glaciers
feeding it, the Indus and its tributaries serve as Pakistans
hydroelectric and food machines.
The pressure on fresh water resources had already reduced our food
production drastically. He quoted from a Ford Foundation study of 1970s,
which stated that out of all the river basins of South Asia, the Indus
Basin alone had the capacity to triple its grain production in 15 years.
Mr Mulk, however, deplored that because of inaction in the field of
water resource development since the commissioning of Tarbela reservoir,
Pakistan had imported two million tons of grains in 1990. He expected
this figure to grow to 6 million tons in 2000 and to 12 million tons by
2010. This was because the water resource development, which until early
70s had kept pace with the population growth, was abandoned, he
regretted.
The silting of Mangla and Tarbela since then had further reduced their
water storage capacities. Thus the per capita availability of water and
consequently our food production had been declining gradually since
then.
Recalling that the availability of irrigation water had more than
doubled after the storage of flood waters in Mangla and Tarbela
reservoirs, the former WAPDA chief strongly advocated the development of
all available water storage sites such as that at Kalabagh.
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961210
-------------------------------------------------------------------
Electoral reforms: some suggestions
-------------------------------------------------------------------
Safdar A. Butt
THE constitution of a country is the main political systems manual.
All political activity in the country is regulated by its provisions. But as
things stand, there is an immediate need to improve certain aspects of our
constitution to ensure that politicians are not allowed to do as they
please.
Four assemblies have been dissolved over the last eight years. Each time,
the list of accusations levelled at the disgraced government has included
corruption, incompetence and irresponsibility. Each successive election has
produced a weaker parliament than before. The last parliament was in fact
so divided that it was virtually ruled by the minority groups. Independents
and leaders of smaller parties were enjoying weightage (and indeed
privileges) far in excess of their true worth in the eyes of the
electorate. The ruling party (and of course the country) had to pay the
price in the shape of huge cabinets, undue favours to parliamentarians, and
compromises on almost everything. All this made good governance very
difficult, if not impossible. The inevitable consequence: dismissal of the
government and dissolution of the assembly.
While one cannot forgive the politicians for taking an undue advantage of
the system, I believe the real cure lies in correcting the system
before we start trying individuals for their respective sins.
Rampant lota-ism is the main problem facing the country. The manner in
which some of the elected representatives have recently conducted
themselves has brought shame on the whole nation. An ordinance putting
restrictions on floor crossing was issued by the acting president before
the Benazir government took over. However, PDF leaders conveniently allowed
this presidential ordinance to lapse in order to enable them to buy
adequate representatives to topple a provincial government and to ensure
their own continued stay at the centre.
What we need is a change in the constitution that ensures automatic
termination of membership of a legislator if he crosses floor. If an
elected member of parliament strongly feels about a particular issue, he
should resign from his seat and seek re-election on the ticket of the party
that he now wishes to align with.
Currently, the constitution allows a person to contest election from
anywhere and from any number of constituencies. We have seen gross abuse of
this provision when a person contesting election from a score of seats wins
just one and goes on to become a power broker. It is proposed that a
candidate should be allowed to contest election only from the constituency
where he or she is registered as a voter for at least one year prior to the
date of the election. This will achieve two objectives; true local
representation that is the essence of a good democratic system and
commitment of leaders to their respective constituents.
All candidates of a party that secures less than, say, 20% of total votes
cast at the appropriate level of election should automatically stand
disqualified whether they win or lose the election as individuals. Each
independent should be considered a separate party. This provision will
ensure that only two or three major parties will reach the parliament while
smaller parties will either die out or merge into larger parties. This will
bring political stability that is so necessary for the promotion of
democratic norms.
The present constitution has conferred great powers on the president. This
office acts as a watchdog on the performance of the government. In order to
make the office of the president closer to the people and to avoid the type
of accusations the PPP has levelled against a person of their own
nomination, it is proposed that the president should be elected on direct
vote basis. However, to give greater weightage to elected representatives,
rules should be made to the effect that while ordinary voters will have one
vote each in the presidential election, each local body member shall have,
say, 100 votes, each MPA shall have, say, 500 votes and each MNA shall
have, say, 1500 votes. This proposal is a simplified variation of the
American presidential election system and I believe is more suited to our
conditions.
One of the major faults of our system is that elections are supposed to be
held every five years. So upon winning an election, parties simply forget
that they have to go back to the electorate and start indulging in the type
of activities that culminate in dissolution of assemblies. While formal
channels of accountability have their utility, I believe the strongest tool
of accountability available in a democratic set-up is the ballot box. There
is a need to send political parties to the electorate more frequently than
once in five years.
The idea is to spread the elections. The tenure of the president, national
assembly, provincial assemblies and local authorities should be set at four
years. However, the election of each of these offices should be staggered
in such a way that there is an election held every year. It is proposed
that March 23 (or such other nationally important date) be set as election
day each year.
In the present situation when national and provincial assemblies as well as
local bodies stand dissolved, I propose that elections be held in February
1997 as follows:
* national assembly for a tenure of four years, so that the next national
assembly election takes place in 2001.
* provincial assemblies for a tenure of three years, so that the next
provincial assemblies election takes place in 2000. The provincial
assemblies to be elected in 2000 will of course have a four-year tenure,
expiring in 2004.
* local bodies election for a tenure of two years so that the next local
bodies election takes place in 1999. The local bodies to be elected in 1999
will have a four-year tenure, expiring in 2003.
* No presidential election should take place in Feb. 1997, but it should be
held in 1998 on the semi-direct election basis outlined above for a four-
year term. The next presidential election will therefore be in 2002.
Currently, there are no reserved seats for women. Given the nature of our
countrys population and its attitude towards women, it is necessary that
at least 20% of our legislators be women. I propose that either through
drawing lots or by use of statistical methods a schedule be prepared on the
following lines:
* 20% of the seats are reserved for female candidates. No male candidate is
allowed to contest election on these reserved seats. These seats should
spread right across the country or province as the case may be.
* At the following elections, another set of 20% of seats is reserved for
female candidates. This should be repeated till such time that each
constituency has had a woman representative elected.
Women should be allowed to contest election on the seats not reserved for
women but men should not be allowed to contest elections on seats reserved
for women. Again, should a need for bye-election arise, only women should
be allowed to contest bye- elections on the reserved seats. In this way, at
any given time at least 20% of legislators will be women and at the same
time, each constituency will send a woman member to the assembly for at
least four out of every twenty years. This proposal is an improvement on
nomination method used previously as nomination to an elected assembly
is against the basic concept of democracy. This is also better than electing
women MNAs on a nationwide election basis as proposed by Mian Nawaz Sharif
as few women would be able to sustain that magnitude of expenditure or
stress
===================================================================
961207
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Pakistan win 2nd one-dayer, series against N. Zealand
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Ilyas Beg
SIALKOT, Dec. 6: An excellent performance by Pakistans opener Saeed Anwar
(91) and Zahoor Elahi (86), and Ejaz Ahmad (59) and later good effort by
Pakistani bowlers, spearheaded by Wasim Akram, enabled the home team to
register a convincing 46-run win over the New Zealand side in the second
one-day international at the Jinnah Stadium.
Pakistan had won the first match by a narrow margin of 11 runs at Municipal
Stadium Gujranwala on Wednesday and with this win, the hosts also clinched
the three-match series of limited overs 2-0. The third match to be played
at the National Stadium, Karachi. However, a win in that match can be
morale-boosting, since the visitors had started their tour of Pakistan by
winning the first Test at the Qadhafi Stadium in Lahore but the host,
bounced back into the series by not also levelling the two Test series
after a win at Rawalpindi but also registering these two consecutive
successes thereafter.
Captain Wasim Akram won the toss and elected to bat first. His decision
proved right. But important is the fact that the Pakistani top three
batsmen made up for their earlier failures by batting well. Once Pakistan
reached a good score of 277 for 9 in 47 overs, New Zealand had little
chances of winning.
The match began 26 minutes late and was reduced to 47-over a side game.
Stephen Fleming (88) and Adam Parore (37) caused a little anxiety in the
Pakistani camp by putting on 118 runs for the third wicket partnership.
Once that stand was broken the New Zealand side could never recover.
Fleming hit a superb knock of 88 and like Ejaz Ahmad was the eighth batsman
out at the total of 213. Saqlain also clean bowled Cairns on not ball after
being hit for a huge six over the players pavilion.
Wasim Akram claimed three New Zealand wickets and Waqar Younis created
early dents by claiming Bryan Young (5), Mushtaq Ahmad and Shahid Afridi
also bowled well to claim two wickets each. The Kiwis were all out for 231
in 42.1 overs.
Saeed Anwar was declared Wills Man-of-Match in a split decision of jury of
five experts. Zahoor Elahi of Pakistan and Chris Harris of New Zealand also
had claims to the honour.
At the total of 177, Zahoor Elahi was bowled by Chris Cairns. While forcing
the run-rate, he missed the line of Cairns straight delivery and lost bail
of his off-stump. But before that he had laid a solid foundation of the
Pakistani innings and totally blunted the New Zealand attack. Zahoor
Elahis and Saeed Anwars partnership eclipsed the earlier highest
record of 152 between Shoaib Mohammad and Ramiz Raja against New Zealand at
Wellington in 1988-89. For the third wicket partnership both had added
highest number of runs (152) for any wicket against that country.
Zahoor Elahi, failing in his first two one-day international matches, found
his touch finally and hit five sixes during his knock of 86 which also
included seven scorching boundaries. Zahoors first six was a freakish
square-out over point boundary as he failed to control his shot off the
delivery of Chris Cairns. Zahoor hit Cairns over long off boundary to take
Pakistans total past 50. Then he drove Justin Vaughan straight over his
head for his third six which also took Pakistans total to 102.
Zahoor Elahi took his individual score to 86, by hitting Nathan Astle over
mid-wicket fence for his fifth six before falling to Cairns. Zahoor
exhibited his cuts, pulls and drives, which had the stamp of a matured
batsman. This knock has enhanced Zahoor Elahis chances of inclusion in the
Pakistan team for the tour of Australia. In the opinion of some experts the
bouncy pitches suit this type of batting, if given a chance to prove his
capabilities.
Saeed Anwars knock was a mixture of defence and aggression. He hit 11
exquisitely-timed boundaries in his top-score of 91 for Pakistan. Saeed
Anwar neatly drove, cut and pulled the ball. In fact, in his usual style,
he sent the ball to the ropes to all parts of the ground using his wrists.
At the total of 225, Saeed Anwar was run out on a direct throw by Harris.
On both the occasions in the one-day series against New Zealand, Saeed has
been run out, Saeed Anwar completed his 17th half-century in style and also
improved Sachin Tendulkars record of the highest number of runs (1497) in
a calendar year in one-day international matches, by accumulating 1576 runs
after this knock of 91.
In walked Ejaz Ahmad amongst thunderous applause from the spectators and
hit a brisk knock of 59, studded with two big sixes and four boundaries, to
further bolster the Pakistani score. He swept Nathan Astle over square-leg
boundary for his first six and later one-drove Simon Doull for his second
six. While on one end, Ejaz Ahmad kept exhibiting his flurry of strokes,
the wickets kept tumbling on the other end. Ejaz was the eighth Pakistani
out, caught at long-on boundary off Justin Vaughan at the total of 269.
Ejaz hit 59 runs in only 71 minutes, consuming 57 deliveries.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
961209
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Pakistan defeat Australia 4-2 in Champions Trophy
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Sydney Friskin
MADRAS, Dec. 8: Pakistan bounced back into contention on the second day of
the 18th Champions Trophy hockey tournament with a convincing 4-2 victory
over Australia.
>From the start Pakistan took the match by the scruff of the neck and never
let go, leaving the Australians wondering what had hit them.
Rahim Khan, who impressed on the previous day in the 2-0 defeat by Holland,
put Pakistan ahead in the 21st minute with a brilliant goal well struck
into the corner of the net. The lead was consolidated five minutes later by
centre forward Kamran Ashraf after a fine bout of passing with Mohammad
Anis and Babar Abdullah.
Australia who had been knocked off their feet recovered some of their
composure when the wing half Baoden Choppy rounded off a combined movement
with a well-taken goal in the 30th minute.
Maintaining the pace with which they had started, Pakistan went in search
of more goals immediately after the resumption of play and Mohammed Usman
scored off the rebound for a 3-1 lead.
The match was briefly flickered into a contest when Jeremy Hiskins, a
substitute, scored for Australia. This goal spurred the Australians on to
greater endeavour but towards the end a goal by Ali Raza from a penalty
corner put the issue beyond doubt.
Pakistans next match is against Spain on Tuesday. It might be recalled
that in the Olympic Games at Atlanta Spain destroyed all chances of a medal
for Pakistan by defeating them 3-0.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
961210
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Bowlers have tough task ahead, says Akram
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Sports Reporter
KARACHI, Dec. 8: Pakistan captain Wasim Akram said the bowlers had a tough
task ahead in Australia as the conditions there were more conducive to
stroke-makers than bowlers.
He said he was going to Australia with a positive approach and thinking to
win the tournament. The West Indies and the Australians, will be aiming at
the same glory but I think we have an edge as we have been playing together
for quite sometime now. Secondly the West Indies are playing below par and
the Australians are not getting the practice they would have loved to
before entering the tournament.
I think if we have a real chance to win the WSC for the first time, it is
this time. But one-day cricket is very funny and anything can happen.
Akram said he was happy with the selected outfit. I am glad specially for
Aamir Sohail who got back into form in the Patrons Trophy. He is a very
gutsy and utility cricketer and I am looking forward for him to shoulder
most of the responsibilities with bat and ball.
Salim Maliks absence will be certainly felt but we have Ijaz Ahmad and
Saeed Anwar who are in sparkling form and then Inzamamul Haq must be hungry
for runs. I am also in form while Moin Khan can also score valuable runs. I
need not mention Shahid Afridi who has scored the quickest century in one-
day cricket. In this background, I feel that we will be much at ease
batting second, said the left-hander.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
961210
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Malik withdraws from trip, back problem for Inzamam
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Samiul Hasan
KARACHI, Dec. 9: Pakistans senior-most current batsman, Salim Malik,
pulled out from the tour of Australia to take part in the World Series Cup.
No official announcement has so far come from the Pakistan Cricket Board,
but it is learnt from well-placed sources that the former skipper has been
advised two weeks rest. As the situation stands at the moment, the
selectors have decided to stick to the remaining 14 players and three
officials.
Besides Salim Maliks injury, Inzamamul Haq is also carrying a bad back
while paceman Mohammad Zahid has made complaints of pain around the inter-
coastal muscle little down the left rib cage.
Inzamamul Haq was to undergo MIR tests for his back at Ziauddin Hospital as
the team manager wanted to be absolutely sure about the fitness of the
player. However, Inzamam disappeared and was known later in the day to be
heading for his home in Multan. When efforts were made to locate him there,
no one responded said Mushtaq Mohammad.
Cricket manager, Mushtaq Mohammad, when contacted said he was unaware of
the latest development. As far as I am concerned, Salim Malik is going
with the team as no official of the PCB has till this time informed me of
Maliks inability to proceed with the side because of injury.
Mushtaq admitted that he had tried to contact the batsman on Sunday but all
his efforts went in vain as Malik didnt make a return call. I had left
a message when told that he was not at home. But until now, I am waiting for
his call.
Desperate attempts to locate Salim Malik were also made from the PCB
Karachi office but this time no one responded from Maliks home.
Nevertheless, it was later confirmed from Maliks in-laws that he was in
Lahore. Maliks ankle has been tapped and he has been advised bed rest
for another eight days before the specialists take another look at the wound,
family sources in Lahore said.
Pakistan captain Wasim Akram also said he has not been informed about Salim
Malik `directly. I have come to know about Malik from other people.
As far as Inzamamul Haq is concerned, he also has a bad back but I am
optimistic that he will be able to overcome the problem.
Dawn page