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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 13 June 1996 Issue : 02/24 -------------------------------------------------------------------

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

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

CONTENTS

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NATIONAL NEWS

21 perish in Hyderabad building collapse Pakistan has deployed M-11s, says US report Govt set to achieve 39 percent literacy rate PM denies purchase of mansion in Surrey Residential plots for the poor to be developed KMC to get 100 more seats before LB polls Haris accuse govt of depriving them of legal rights Proportion of workers goes down, except in agriculture ---------------------------------

BUSINESS & ECONOMY

Economic Survey released : GDP goes up but deficit persists Trade imbalance shoots up to $3bn during 11 months 6.1 percent growth rate seen in 1995-96 SBP may withdraw special reserve requirements 300 more items to come under Sales Tax net MFN status for India in a few months Stocks recover on strong covering purchases ----------------------------------------

EDITORIALS & FEATURES

Herr Generalfeldmarschall Attiq von Rachmann Ardeshir Cowasjee Rich and poor, we're all in this together Benazir Bhutto Politics of corruption M.B. Naqvi Lost in cyberspace Mazdak -----------

SPORTS

Pakistan bag Asian jrs hockey Pakistan's target is Olympic gold: Samiullah Stiff challenge in European contests: Mansoor Shahbaz drops out of hockey teams European tour Yawar confident of success on England tour

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NATIONAL NEWS

=================================================================== 960613 ------------------------------------------------------------------- 21 perish in Hyderabad building collapse ------------------------------------------------------------------- Aziz Malik HYDERABAD, June 12: At least 21 people were killed and an equal number injured when a four-storey old building collapsed near Market Tower here at 5.30am on Wednesday. The number of casualties was feared to rise once the rubble was removed. The rangers moved in and started rescue operation, army engineering corps volunteers, Edhi centre and other social welfare organisations also joined the rescue operation. Army cranes, bulldozers and dumpers of a Chinese firm of the Jamshoro grid station and excavators and loaders of Hyderabad Municipal Corporation are working to lift the rubble. The entire staff of the Hyderabad Municipal Corporation reached the Civil Hospital and put up a camp there to provide medicines and other help to the injured. The occupants of the building, about eleven families comprising 94 persons, belonged to the Arain community were close relatives. The catastrophe would have been even greater but for a power breakdown, which had compelled the male members to leave the building and sit or sleep outside. The cause of collapse was a 15-feet deep excavation adjacent to the building by a builder and abandoned for three years which had weakened its foundations. The area people held the builder and the building control department of HDA responsible. Mohammad Yousuf's family was most unfortunate whose entire members " wife, two daughters and a son " died with him. The bodies were removed to civil hospital here and finally laid to rest after last rituals performed by the Edhi volunteers. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960613 ------------------------------------------------------------------- Pakistan has deployed M-11s, says US report ------------------------------------------------------------------- Staff Correspondent WASHINGTON, June 12: US intelligence agencies have claimed that Pakistan has deployed nuclear-capable Chinese M-11 missiles and that the transfer was part of a plan to skirt missile-control agreements, the Washington Times reported. The finding is expected to trigger US economic sanctions against both Pakistan and China based on a 1990 law, the paper claimed in a special report by correspondent Bill Gertz, who first reported the alleged transfer of ring magnets to Pakistan from China earlier this year. The intelligence agencies declaration, the paper claimed, contained in inter-agency reports produced last month, confirms for the first time that Pakistan now has a strategic nuclear delivery capability. CIA and State Department spokesmen would not comment on the intelligence reports. A Chinese embassy spokesman also declined to comment. A Pakistani embassy spokesman denied that any M-11s were operational in his country or that any were bought from China. State department officials, however, are trying to block the intelligence judgement through bureaucratic manoeuvring to avoid imposing sanctions, according to intelligence sources, the report said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960612 ------------------------------------------------------------------- Govt set to achieve 39 percent literacy rate ------------------------------------------------------------------- Habib Khan Ghori KARACHI, June 11: Sindh Minister for Education Agha Siraj Durrani said the government had adopted a new approach to make education public-oriented and community-supported at the grassroots level. Highlighting the silent features of the government policy, he said: The new strategy is based on Parent-Teacher Associations to monitor and supervise the performance of all private and public sector schools while the Educational Advisory Council, a steering body headed by the provincial minister of education, will be entrusted with the task of implementing the government policy and attaining social targets. Agha Durrani said the government was attaching top priority to education because development and prosperity could never be achieved without acquiring modern education and raising the literacy rate. We are optimistic that our efforts would pave the way for achieving the literacy rate of 39 per cent as against the 31.4 per cent in the province according to the 1981 census. The governments commitment can be gauged from the fact that despite financial constraints the provincial government allocated Rs 1255.669 million for the education sector from the annual development programme which is 18.8 per cent of the total size of the ADP of Rs 7000 million. Besides, the government allocated Rs 1.260 billion as counterpart funds for the foreign-aided projects in the education sector. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960611 ------------------------------------------------------------------- PM denies purchase of mansion in Surrey ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 10: Prime Minister Benazir Bhutto on Monday denied opposition charges that she had purchased a mansion in Surrey, England and termed them part of the oppositions plan to oust her from power by playing dirty tricks. I consider it below my dignity to reply to them other than to say that I am too busy running the country instead of buying houses, she told reporters at a news conference in her assembly chamber. She said the opposition was spending huge money on getting such fabricated stories published in foreign newspapers. I know that all the vested interests who had earned black money have once again united against me and want to oust me before March 1997 when the term of the chairman of Senate would expire. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960610 ------------------------------------------------------------------- Residential plots for the poor to be developed ------------------------------------------------------------------- Staff Reporter KARACHI, June 9: Prime Minister Benazir Bhutto has directed the provincial government to develop residential plots for common people at Tehsil and district headquarters levels on a priority basis, said provincial Housing and Town Planning Minister Abdul Hakeem Baloch. Besides, the town planning department has also been directed to launch an incremental housing development programme, starting with two pilot projects at Tando Mohammad Khan and Tando Adam, providing 120-square yard plots to the poor on affordable and easy instalments. The scheme will take off next month on the pattern of Khuda Ki Basti. The minister explained that the government would provide land and municipal services would be at cost. Initially, 250 plots of 120 square yards each would be made available in Bhitai Nagar Housing Scheme in Tando Adam and Miran Mohammad Shah Housing Scheme in Tando Mohammad Khan, he added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960608 ------------------------------------------------------------------- KMC to get 100 more seats before LB polls ------------------------------------------------------------------- Our Reporter KARACHI, June 7: The strength of Karachi Metropolitan Corporation will be increased by another 100 seats before the local bodies elections this year, official sources said. Ms Bhutto said increase in the KMC seats had become inevitable due to increase in the population of the megalopolis, said the spokesman. She said since the number of KMC seats had been fixed at 220 about two decades back, municipal units had become as big as provincial assembly constituencies. Delimitation of the constituencies would have to be undertaken soon to make it more uniform and rational, she added. She said due to lack of uniformity some constituencies comprised 40,000 votes while others were comparatively small. This discrepancy, she said, made her party secure less seats. Prime Minister Benazir Bhutto said the decision to increase the number of seats was in conformity with the governments promise to devolve power to the grassroots level and added it was necessary to reduce the size of the constituency. She said the commission for conducting local bodies elections was independent and as such the ruling party will have to make its case very strong to convince the commission to increase the number of constituencies. For this purpose, she said, the PPP had formed a committee, headed by Abdul Khaliq Jumma which would provide legal assistance to the PPP councillors in presenting their case before the election commission. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960608 ------------------------------------------------------------------- Haris accuse govt of depriving them of legal rights ------------------------------------------------------------------- Staff Correspondent HYDERABAD, June 7: The Sindhi Hari Tahreek has regretted that instead of protecting the rights of poor haris some landlords and the government itself were trying to deprive the peasants of their legal rights. The meeting, under the chairmanship of Vishnu Mal, observed that the haris had pinned great hopes on the present government but they had been greatly disappointed. The meeting resolved to launch a struggle through out the province in furtherance of the above objectives. Meanwhile, the chairperson Sindhi Qaumi Saath (Sindhi Nation Association), Ms Fahmida Qureshi, in a statement has charged that a big zamindar of Sanghar Mureed Mari, who owned 12000 acres of land, was holding 2500 haris in bondage. She claimed that during her recent tour of Sanghar, she had personally given 200 names of bonded haris to the deputy commissioner of Sanghar. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960612 ------------------------------------------------------------------- Proportion of workers goes down, except in agriculture ------------------------------------------------------------------- *From Our Correspondent ISLAMABAD, June 11: The proportion of workers in all sectors except agriculture has gone down in Pakistan during the last three years, according to the economic survey for 1995-96 released here on Tuesday. The share of agriculture workers increased from 46.62 per cent in 1992-93 (reported in labour force survey, 1992-93 and 1993-94) to an estimated 49.06 per cent in 1995-96. As against the share of 25.66 per cent in 1992-93, production workers account for 24.69 per cent in total labour force in the current year. The proportion of professional workers declined from 4.83 per cent to 4.59 per cent; administrative workers from 1.19 per cent to 0.94 per cent, clerical workers from 4.54 per cent to 4.37 per cent, sales workers from 12.56 per cent to 11.98 per cent and services workers from 4.60 per cent to 4.56 per cent. In conjunction with the shrinkage of workers in most occupations, the survey also reports substantial rise in the number of unemployed from 1.23 million in 1994-95 to 1.78 million in the current year, said the survey. That the situation may be much worse is indicated by the definition of employment given in the document. It does not include workers who have stopped seeking employment due to frustration. ******************************************************************* DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************* INTERNET PROFESSIONALS WANTED * MS in computer science, with two years experience, or, BE with four years experience in the installation and management of an ISP. * Must be able to select equipment, configure, and troubleshoot TCP/IP networks independently. Preference will be given to candidates with proven skills in the management of a large network and security systems. * We have immediate openings in Karachi, Lahore and Islamabad. * Competitive salary and benefits, and an exciting work environment await the successful candidates. send your resume to by e-mail : ak@xiber.com by fax : +92(21) 568-1544 by post : Dr. Altamash Kamal, CEO Xibercom Pvt. Ltd 2nd Floor, Haroon House Dr. Ziauddin Ahmed Road Karachi 74200, Pakistan http://xiber.com

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BUSINESS & ECONOMY

960612 ------------------------------------------------------------------- Economic Survey released : GDP goes up but deficit persists ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, June 11: The overall economic situation during 1995-96 improved significantly, with 6.1 per cent GDP growth, 5 per cent budget deficit and monetary expansion brought down at 8.4 per cent but the balance of payment position came under pressure and prices showed upward trends. According to the Economic Survey for 1995-96, there has been marked improvement in macro-economic indicators specially 6.1 per cent GDP growth rate compared to 4.4 per cent in 1994-95. The growth rate improved considerably specially due to growth in agriculture sector which was recorded at 6.7 per cent with record production figures for rice and wheat. Cotton has been a major factor which contributed to overall agricultural growth during the current year when it recorded an increase of 21.8 per cent. Although the budget deficit came down to 5 per cent the target of 4.6 per cent envisaged for the current year could not be met. The survey claimed that there was a greater elasticity in government revenue because of fiscal checks taken during the year. The growth of value-added items in the manufacturing sector increased by 4.8 per cent in 1995-96 from 2.9 per cent during the previous year. Growth in large-scale manufacturing based on the production of 96 items, having 73.7 per cent weight in the large-scale manufacturing sector, improved by 3.1 per cent during 1995-96 as against lower growth of 0.5 per cent achieved in 1994-95. Balance of payment position and prices remained a matter of concern. However, the survey said the overall BOP position showed an improvement during 1994-95. Exports revived with 17. 9 per cent (FOB) increase which took them to 7.8 billion dollars from 6.6 billion dollars recorded in 1993- 94. This substantial increase brought the trade deficit down from 3.8 per cent of GDP in 1993-94 to 3.7 per cent in 1995-96. The inflow under private unrequited transfers (net) increased by 7.0 million dollars and aggregated at 2.3 billion dollars (exactly 2397 million dollars). Workers remittances swung from negative growth of 7.5 over cent in 1993-94 to a marked increase of 29.1 per cent and stood at 1.8 billion dollars in 1994-95 compared to 1.4 billion dollars recorded in 1993-94. As a result, current account deficit amounted to 2.4 billion dollars which was about 3.9 per cent of GDP. The inflow on account of long-term capital (net) rose from 2.5 billion dollars in 1993-94 to 2.9 billion dollars in 1995- 96, showing an increase of 416 million dollars or 16.3 per cent. The netting out of necessary adjustments has closed the year with a foreign exchange reserves build of 242 million dollars. The budget estimates for 1995-96 envisaged further improvement in the BOP position. It was anticipated that as a result of better performance of exports, trade deficit would decline to 1.9 billion dollars from 2.2 billion dollars in 1994- 95, reflecting an improvement of 12.1 per cent. Thus, trade deficit was expected to come to 3.1 per cent of GDP in 1995-96. The total balance of payments position during the first half of the current year came under pressure due to decline in exports coupled with higher imports. The corrective measures were taken in October 1995 which include devaluation of rupee by 7 per cent against dollar and imposition of regulatory duty of 10 per cent on imports. As regards prices, the survey said the Consumer Price Index (CPI), with 1990-91 as its base, covers 467 items encompassing almost the entire range of familys basket of goods and services. It is, therefore, the most frequently used indicator of inflation. During July-April 1995-96, the CPI for all income groups recorded an increase of 9.77 per cent which is less than the increase of 10.82 per cent in the same period last year. The mining and quarrying sector experienced a shift from a negative growth rate of 4.3 per cent in 1994-95 to a positive growth of 8.3 per cent in 1995-96. The output of coal crude oil and mineral sector, witnessed an increase of 10.2, 4.4 and 14.5 per cent respectively. Limestone production decreased by 5.3 per cent while the production of rock salt recorded an increase of 6.1 per cent. About savings and investment, the Economic Survey said that total investment outlay in 1995-96 was estimated at Rs425.2 billion against Rs349.1 billion during the last year which showed an increase of 21.8 per cent. Fixed investment increased by 21.5 per cent from Rs320.9 billion in 1994-95 to Rs390.0 billion in 1995-96. The share of total investment in GNP (market prices) came to 19.4 per cent during 1995-96 compared to 18.6 per cent the previous year. National Savings was estimated to finance 71.3 per cent of total investment and 28.7 per cent was financed by foreign savings. Foreign savings increased by 10.2 per cent during 1995-96. About expenses, it said out of total expenditure of Rs494.9 billion, Rs371.3 billion related to federal government and Rs123.6 billion to provincial governments. The growth of total expenditure of 15.6 per cent during 1995-96 was slightly less than the growth of nominal GDP at 16.5 per cent. Federal expenditure increased at 16.7 per cent compared to the provincial expenditure which grew at 12.1 per cent. The ratio of expenditure to GDP i.e. 22.8 per cent during 1995-96 is marginally lower than 23.0 per cent last year. Gross revenue receipts, from tax and non-tax (excluding SAP) were targeted at Rs374.5 billion during 1995-96 to meet current as well as development expenditure of the federal and provincial governments. These revenues are 75.6 per cent of the total expenditure during the current year whereas current expenditure constitutes 80.5 per cent of total expenditure. Tax revenues constitutes 79.9 per cent of total revenues and non-tax revenue 20.1 per cent. The tax revenues are classified as direct tax and indirect tax. Discussing trends in monetary expansion, the survey said the National Credit Consultative Council adopted the Annual Credit Plan after it was approved by the NEC in its budget meeting held in May 1995. It noted total credit expansion of Rs100.49 billion (13.0 %) for 1995-96. Of this, domestic credit expansion was targeted at Rs114.24 billion (15.0%) while a contraction in net foreign assets of Rs13.75 billion was projected in view of a large trade gap. Of this main constituents of domestic credit, Rs30.00 billion had been earmarked for budgetary support, Rs5 billion for commodity operations, Rs3 billion for five autonomous bodies and Rs64.24 billion for private sector. In addition to the budgetary support of Rs30 billion, financing to the extent of Rs12 billion was clubbed with the government sector out of sale proceeds of PTC vouchers. No separate provision was made for public sector enterprises. On foreign economic assistance, the survey said that the country had been faced with inadequacy of domestic capital to meet its development requirements as is reflected in persistent saving - investment gap. To bridge this gap, it has been relying on foreign economic assistance since early 1950s. It has been estimated that total commitments of public and public guaranteed medium and long-term loans and grants would add up to 56.1 billion dollars by 30th June 1996. Out of this, 44.7 billion dollars are likely to have been disbursed. The disbursed amount would comprise loans amounting to 34.8 billion dollars and grants worth 9.9 billion dollars, while repayment are estimated at 14.0 billion dollars. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960612 ------------------------------------------------------------------- Trade imbalance shoots up to $3bn during 11 months ------------------------------------------------------------------- Staff Reporter KARACHI, June 11: Pakistans trade imbalance in the last 11 months has shot up to almost $3 billion mainly because of sluggish growth, less than six per cent, in exports and 15 per cent rise in import bill. Trade deficit during July 1995 to May 1996 represents a rise of about $1 billion over the trade imbalance suffered in the same period of 1994-95 when it amounted to a little over $2 billion. Figures of international trade revealed that exports during the last eleven months fetched $7.56 billion showing a growth of 5.84 per cent over export earnings of $7.15 billion realised during July 1994 to May 1995 period. Import bill during the last eleven months went up to $10.56 billion, up by 14.78 per cent, over $9.20 billion import bill in the same period of last fiscal year. As the trends indicate, total exports till end of June would hardly touch $8.3 to $8.4 billion and would be short by over $800 million of the $9.2 billion officially fixed export target for 1995-96. Exports in May amounted to $837.29 million and are likely to remain more or less at the same level in June. Import bill during 1995-96 is expected to exceed $11.5 billion as imports during May were worth $998.41 million and is expected to be about $1 billion in June and trade imbalance would exceed $3 billion mark to match trade gap reflected during 1992-93. More than $900 million have been contributed by two primary commodities which are cotton and rice in the export earnings of the current fiscal year. Cotton export till May this year fetched $500.46 million, showing a growth of more than 1000 per cent. Export of rice fetched about $400 million in the current fiscal year so far. On the import side, the striking feature is the import bill of edible items which now amounts to $1.5 billion and would exceed $2 billion till the end of June. Machinery import is worth $2.21 billion, showing an insignificant growth of 6 per cent, petroleum products $1.34 billion, showing a rise of 34 per cent, chemicals $1.91 billion, a rise of over 40 per cent, motor vehicles $401.26 million, synthetic yarn $52.79 million and synthetic fibre $115.42 million. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960611 ------------------------------------------------------------------- 6.1 percent growth rate seen in 1995-96 ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, June 10: The Economic Survey of Pakistan, a pre-budget document which depicts in numbers the economic gains and losses made by the country in the outgoing year has portrayed a picture of mixed trends for 1995-96, according to provisional estimates contained in this years document to be released. The overall growth rate which was targeted to grow at the rate of 6.5 per cent during the year is said to have recorded a growth rate of 6.1 per cent which is better than last years achievement of 4.8 per cent. The significant improvement in the overall growth rate compared to last years is the result of a dramatic increase in the production of raw cotton; and the failure to achieve the target set for the year on the other hand has been attributed to slower growth in transport & communications, banking & insurance and public administration. The rate of inflation which was targeted to slow down to 9.5 per cent in 1995-96 from the previous years 13 per cent, however, lingered between 10 and 11 per cent. The total investment increased from 18.7 per cent of GDP in 1994-95 to 19.6 per cent of GDP in 1995-96 of which private sector fixed investment has increased from 8.9 per cent of GDP in 1994-95 to 9.9 per cent of GDP this year. In the manufacturing sector, investment has increased by 40 per cent. Similarly, foreign direct investment increased to nearly 700 million dollars compared to nearly 400 million dollars last year. The exports which were projected to increase by 16 per cent to 9.1 billion dollars could improve by only about 10.4 per cent during the year at over 8 billion dollars, but less than 9 billion dollars. Imports at 11 billion dollars on the other hand shot up by over 15 per cent against the projected growth of 9.2. As a result, the trade account deficit which was projected at nearly 2 billion dollars is likely to expand to nearly three billion dollars. Since remittances also fell to 1.7 billion dollars from last years nearly 2 billion dollars, the current account deficit projected at 2.8 billion dollars is expected to go much beyond three billion dollars against previous years achievement of 2.4 billion dollars. The country is still in the transitional phase of reforms. The cost of structural adjustments in certain areas is still outweighing the gains expected from such adjustments. These costs including very low per capita income growth and higher inflation during the last two years at times, have imposed compulsions constraining the pace of structural adjustment. During 1995-96, such compulsions led to slowing down the pace of fiscal deficit reduction as well as tariff reduction. The budget for 1995-96 had envisaged a reduction in overall fiscal deficit from 5.6 per cent of GDP in 1994-95 to 5 per cent in 1995-96. This improvement was expected with new taxation measures of Rs17 billion. Furthermore, receipts from privatisation of public sector enterprises were to offset the outstanding national debt, thereby reducing the interest payment liabilities. In November 1995 some corrective measures were carried out to further improve the fiscal position by another Rs. 15 billion and the target for overall fiscal deficit was revised downward to Rs98.9 per cent ,i.e. 4.6 per cent of GDP. However, by the end of the year the projected fiscal deficit had to be revised back to 5 per cent due mainly to a significant increase in non- development expenditures and equally significant decline in revenue collection. And in view of the fact that by mid-May the borrowing for budget had shot past the whole year target by Rs40 billion, the overall fiscal deficit is expected to be over 5 per cent but less than last years figure of 5.6 per cent. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960609 ------------------------------------------------------------------- SBP may withdraw special reserve requirements ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, June 8: State Bank of Pakistan (SBP) Governor Dr Muhammad Yaqub indicated on Saturday the SBP may withdraw the additional reserve requirement provided the commercial banks do not expand their advances recklessly. Dr Yaqub indicated he might consider withdrawal of the requirement once the banks assure him they would not misuse it, a local bank chief told Dawn after attending a meeting of all 41 commercial banks at the SBP head office. The meeting chaired by Dr Yaqub also reached a consensus on maintaining a certain level of foreign currency deposits throughout the year to prevent any crisis-like situation. Currently banks maintain 33.5 per cent of their time and demand liabilities with the SBP as mandatory reserve including the additional 3.5 per cent. The SBP pay the banks a return of around 13 per cent per annum on the additional reserves but the bankers say they can get a higher return on their funds in the market. Dr. Yaqub underlined and we recognised the need for developing a mechanism to ensure it, said a foreign bank chief adding no specifics were discussed. The two bankers refused to be quoted. They said the SBP governor announced he would soon start holding separate meetings with individual banks as a follow-up of the Saturday meeting. Sources privy to the meeting said the SBP chief lamented that excessive credit expansion had resulted in a drawdown of foreign exchange reserves. They said the governor linked it to the excessive government borrowing for budgetary support that according to him had already reached Rs 74 billion mark more than twice the target of Rs 28 billion set for 1995/96. They quoted the SBP chief as saying that monetary expansion stood at 12.2 percent as on May 23 due to these reasons. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960609 ------------------------------------------------------------------- 300 more items to come under Sales Tax net ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, June 8: As many as 300 additional items will be brought in the Sales Tax net following the withdrawal of exemptions in the next budget. This will result in full coverage of Sales Tax at the import and manufacturing stages for commodities numbering 830 in all. In addition, all fixed Sales Tax schemes will be withdrawn from July 1, 1996. Informed sources said that most of the additional revenues amounting to Rs. 40 billion which the Prime Minister the other day said her government proposes to mobilise through the next budget will come from the non- cascading Sales Tax head. The receipt of Sales Tax has shown tremendous buoyancy during the last five years as it more than doubled from Rs. 20.79 billion in 1991-92 to nearly Rs. 45 billion this year, according to provisional estimates. During the last five years percentage share of Sales Tax in total collection increased from 15 per cent to over 20 per cent and in indirect taxes from 20 per cent to 30 per cent. In 1993-94 there were 23, 572 registered units in the country paying Sales Tax. During 1994-95 the registered units increased to 32,234 or up by 37 per cent as compared to the preceding year. The figures for the current year are still being compiled. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960609 ------------------------------------------------------------------- MFN status for India in a few months ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 8: Minister for Commerce, Chaudhry Ahmad Mukhtar has favoured trade with India and said under the Marakish Accord, Pakistan would have to offer the status of Most Favoured Nation(MFN) to New Delhi. He said India could be given MFN status in the next few months. He said, Pakistan had an international commitment to fulfil to offer this MFN status to India. He said the government had in principle agreed to offer MFN to India and to have meaningful bilateral trade. But it was still studying the likely practical impact of opening trade with its giant neighbour. The report is not yet finalised, he said, adding that it could be ready by August. We are carrying out studies in different sectors, the engineering sector, the agriculture sector, and then we have narrowed the sectors in which we play a very major role and once the report comes back on these studies then we will be able to finally decide granting of this status, Mukhtar added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960613 ------------------------------------------------------------------- Stocks recover on strong covering purchases ------------------------------------------------------------------- Commerce Reporter KARACHI, June 12: After initial steep decline on panic selling spurred by news of heavy taxes of Rs 40 billion in the new budget, stocks recovered before the closing well on strong covering purchases at the lower levels. The recovery was led by the pivotals, notably PTC vouchers and Hub-Power, who encountered massive selling early and then attracted buying at the lower levels. At one stage the KSE 100-share index was down by 35 points, breaking the barrier of 1,700-point but managed to finish above the psychological barrier thanks to late covering purchases. The index was last quoted at 1,706.58 points as compared to previous 1,715.01, showing net decline of 8.43 points. Bulk of the alternate bouts of buying and selling remained confined to PTC vouchers, which because of its size has a weightage of about 20 per cent in the KSE 100-share index and any either-way movement in its share value is well-reflected in the behaviour of the index. It was massively traded owing to a tussle between some leading foreign investors after the news of its securitisation through a foreign bank but buyers finally dominated the scene as they covered positions at the lower levels. A massive activity of about 29m shares in a single session for any share was said to be a record in the recent past as it demonstrates its liquid position and investors' willingness to play on both sides of the fence. Nestle Milkpak added another Rs 10 to its overnight rise of Rs 8, making the total in the two pre-budget sessions to Rs 18 apparently for some good news. Siemens followed it, which also scored a fresh gain of Rs 10 adding to the previous gains of Rs 5 on news that engineering industry might get some incentives in the budget to boost exports. Some of the pharma shares followed them under the lead of Sandoz Pakistan and Recitt and Colman on an identical news. Both rose appreciably. Other good gainers were led by Rafhan Maize, Gatron Industries, Singer Pakistan, Lever Brothers, and Al-Abid Silk, which posted gains ranging from Rs 2 to 5. Prominent losers were led by Dewan Salman, Nishat Mills, Mustehkam Cement, PSO, and Packages, falling by Rs 2 to 5, the biggest decline of being in PIC. Other losers included Burshane Pakistan, Pakistan Refinery, Shell Pakistan, PTC vouchers, Engro Chemicals, and Highnoon, which suffered fall to the extent of one rupee to Rs 1.75. It was in this background that Gauhar Engineering made debut at the face value of Rs 10 and steadily rose to finish the day at Rs 13, showing a gain of Rs 3 on volume of 2,500 shares. On the corporate front, the directors of United Insurance company have announced cash dividend at the rate of five per cent for the year ended Dec 31, 1995. The most active list was topped by PTC vouchers, off Rs 1.15 on 28.600m, followed by Hub-Power, lower 40 paisa on 12.431m, FFC-Jordan Fertiliser, easy 30 paisa on 1.627m, Dewan Salman, off Rs 2.35 on 1.245m, Lucky cement, up 30 paisa on 1.311m, Dhan Fibre, lower 20 paisa on 0.521m, and LTV Modaraba, unchanged on 0.231m shares. Trading volume rose further to 49.367m shares from the previous 42.829m shares owing to large business in pivotals. There were 312 actives, out of which 145 shares fell, while 87 rose, with 80 holding on to the last levels. ******************************************************************* DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************* DAWN's SPECIAL REPORT ON JAPAN June 20, 1996 Dear Sir, DAWN, Pakistan's most widely circulated English daily newspaper, will publish a Special Report on Japan on June 20, 1996. The upcoming report, proposing to provide an insight into the bilateral relations between Pakistan and Japan, will not only focus on existing mutual trade between the two countries, but will also highlight possibilities for developing further markets in Pakistan for Japanese capital and consumer goods. The government's liberal policies as regards foreign investment in Pakistan have also opened new avenues for independent or joint ventures by foreign organisations in the fields of engineering, pharmaceuticals, telecommunications, electronics, aviation, textile, transportation, oil and gas etc. in general and in the field of power generation in particular-specially in the wake of the prevalent energy crisis in the country and the government's special emphasis on establishing several private power projects in order to overcome the shortage. With focus in the past and regular surveys on countries such as Austria, Australia, Belgium, Canada, China, Federal Republic of Germany, France, Holland, Indonesia, Japan,, Korea, Malaysia, New Zealand, Singapore, South Africa, Denmark, Switzerland, United Kingdom, Sweden, United States of America, United Arab Emirates, DAWN country reports have become a tradition in specialised reporting and are read by key decision makers in government, trade and industry. Targeting the right audience for your business in Pakistan, the said Trade Report would prove to be an ideal medium for you to promote your products and services in Pakistan. By advertising in this Special Supplement, you would get an ideal opportunity to promote your organisations corporate image, range of products and services within a well defined target audience in Pakistan. An article/write-up on your company could also be included in this feature, free of cost, subject to editorial approval and space constraints. The advertisement costs are as follows: Full page b/w (432 col cm) US$5490.00 Half page b/w (216 col cm) US$2790.00 Qtr page b/w (108 col cm) US$1490.00 60 col cm b/w US$ 840.00 (For colour, 100% over b/w rates). For any further queries or booking of advertisements, please do not hesitate to contact me on Phone: 021-520080 (10 lines), Fax: 021-5683801. e.mail: ali%dawnadv%khi@sdnpk.undp.org Looking forward to your participation, I remain, Yours sincerely, ALI HASAN NAQVI Manager Advertisements ******************************************************************* CANADA : A DAWN Country Report: June 18, 1996. DAWN, Pakistan's most widely circulated English newspaper, will publish on June 18, 1996, Country Report: Canada, DAWN's 7th such report on the country. Country Report: Canada will not only focus on existing mutual trade between the two countries, but will also highlight possibilities for developing further markets in Pakistan for Canadian capital and consumer goods. The government's recent investment in infrastructure and its liberal policies regarding foreign investment in Pakistan, has also opened new avenues for independent or joint ventures by foreign organizations in various fields in general and in the areas of engineering, telecommunications, power generation, mining and oil & gas in particular. The recent Team Canada visit to Pakistan and subsequent materialisation of various joint ventures between Canadian and Pakistani organizations, has accelerated the pace of industrial and commercial collaboration between the two countries. In view of the above, I am confident that Country Report: Canada will be the ideal editorial environment to promote your business interests in the region. DAWN has a proven track record in publishing timely and well- researched Country Reports. Foreign companies welcome their publication as they provide them direct access to government organizations and private sector entrepreneurs. Read throughout Pakistan, DAWN's circulation stands at over 115,000 with a total readership exceeding 495,000. The advertisement costs are as follows: Full page b/w (432 col cm) US$5490.00 Half page b/w (216 col cm) US$2790.00 Qtr page b/w (108 col cm) US$1490.00 60 col cm b/w US$ 840.00 (For colour, 100% over b/w rates). For further information or booking please contact: Tel: (92-21) 520080/ ext. 3139/3104 (10 lines). Fax (92-21) 5683801. e mail: mktg@dawn.xiber.com Yours sincerely, Raza Mankani Business Executive ******************************************************************* IMMIGRATION TO CANADA A DAWN Special Report: June 18, 1996. In May 1995, DAWN, Pakistan's most widely circulated English newspaper, published a Special Report on Immigration to Canada. This feature was intended to provide an insight into the essentials of the subject for the readers who aspire to migrate to the country but lack the necessary information required to give them an idea of what is involved in the immigration process. As expected, the above feature received a tremendous response from our readers and was considered one of the most comprehensive sources of information on the subject. As a result, immigration consultants from other parts of the world including Australia and New Zealand, stepped up their efforts to reach a larger audience through DAWN and provide relevant information which was previously limited to only a handful of prospective immigrants. Following the success and constant demand for up-to-date information on the subject, DAWN plans to publish another Special Report on Immigration to Canada. The upcoming feature would provide and update of immigration procedures, amendments, if any, in the legal process as well as advertisements and editorial coverage of the services provided by various immigration consultants and advisors. DAWN is read throughout Pakistan and enjoys nation-wide influence. Its circulation stands at over 115,000 copies and its total readership exceeds 4,95,000. In view of the contents of the Special Report: Immigration to Canada, I believe a presence in the same will be a timely opportunity for Canadian immigration consultants and advisors to establish their credentials among a precisely targeted audience. The advertisement costs are as follows: Full page b/w (432 col cm) US$5490.00 Half page b/w (216 col cm) US$2790.00 Qtr page b/w (108 col cm) US$1490.00 60 col cm b/w US$ 840.00 (For colour, 100% over b/w rates). For further information or booking please contact: Tel: (92-21) 520080/ ext. 3139/3104 (10 lines). Fax (92-21) 5683801. e mail: mktg@dawn.xiber.com Yours sincerely, Raza Mankani Business Executive DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* DAWN FACTS Another first from the DAWN Group of Newspapers --- the people who brought you the first on-line newspaper from Pakistan --- comes DAWN Facts, a new and powerful Fax-on-Demand service, the first service of its kind in Pakistan, giving you access to a range of information and services. Covering all spheres of life, the service arms you with facts to guide you through the maze of life, corporate and private, in Pakistan. With information on the foreign exchange rates, stock market movements, the weather and a complete entertainment guide, DAWN Facts is your one-stop source of information. DAWN Facts is available 24 hours a day, 7 days a week! DAWN Facts +92(21) 111-777-111 DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. Annual Subscription Rates : Latin America & Caribbean US$ 93 Rs. 2,700 North America & Australasia US$ 93 Rs. 2,700 Africa, East Asia Europe & UK US$ 63 Rs. 1,824 Middle East, Indian Sub-Continent & CAS US$ 63 Rs. 1,824 Please send the following information : Payments (payable to Herald) can be by crossed cheque (for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). Name, Postal Address, Telephone, Fax, e-mail address, old subscription number (where applicable). 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EDITORIALS & FEATURES

960607 ------------------------------------------------------------------- Herr Generalfeldmarschall Attiq von Rachmann ------------------------------------------------------------------- Ardeshir Cowasjee NO toy soldier he, no desk-top general. He went to war with Slim's 14th army. An officer and a gentleman of total integrity was my soldier friend, Attiqur Rahman, who died at Lahore on June 1. Attiq was the son of Lt Colonel Mohammed Abdur Rahman of the Indian Medical Service. Born on June 24, 1918, he was educated at St Paul's School, London and at the Indian Military Academy, Dehra Dun, where he was awarded the Sword of Honour. Commissioned on February 1, 1940, he joined the 4/12 Frontier Force Regiment and was posted to Thall, Kurrum (Ahmedzai Operations) and then to Datta Khel (Lower Tochi Operations). In November 1941 his regiment went to join Slim's 14th Army to fight in Burma. Attiq saw action at Moulmein on the Salween River, at the Sittang River, at the Siege of Imphal and was awarded the Military Cross for conspicuous bravery in the face of the enemy. He was sent back to India and put through the Staff College at Quetta and just before the war's end returned to Burma as DDA/QMG 33 Brigade, with 7 Division at Waw. Come to the end of the war, he was posted to the Indian Military Academy as an Instructor (GSO-2). In 1947, with the birth of Pakistan (Army number PA 103) he was sent as Chief Instructor to the newly formed Pakistan Military Academy, Kakul. After that he was given command of his own regiment, the 4 FFR, until in 1950 he was sent to the Command and General Staff College, Fort Ldeavonworth, USA. He returned to Pakistan in 1951 to command 101 Brigade. Back to Quetta in 1952 to do a couple of 'old boy' courses at the staff College, after which he stayed on as Deputy Commandant. 1956 saw him commanding 53 Brigade in Comilla (East Pakistan) and later that year he was posted to GHQ first as DMO and then as VCGS. In 1959, he was given command of 15 Division, then of 7 Division. He did the Imperial Defence College (London) course in 1962, and came back to GHQ in 1963 as AG. During the 1965 war, he was posted to HQ-1 Corps, and later given command of 12 Division. In 1966, promoted to Lieutenant General, he commanded his firs Corps, 4 Corps at Multan. He later moved to 1 Corps, and come 1969 and Yahya's Martial Law he was appointed MLA and Governor West Pakistan. With the break-up of One Unit in 1971, he took over as Governor of Punjab. He retired from the army and from the governorship in December 1971. As Colonel Commandant of the Frontier Force Regiment and as Colonel of the 6 FFR and the 27 FFR, during his retirement he devoted much time to the welfare of his regiment and its men. It was during his early retirement that he wrote and published seven books on matters military. In 1977, Zia pulled him out of retirement and persuaded him to take over as Chairman of the Federal Public Service Commission, a position he held with distinction until 1985 (interestingly, his father, before coming to Pakistan, had headed the Public Services Commission of the Nizam's Hyderabad). When Ahmed Jaffer, Attiq's great friend and tennis partner, died in 1987, he succeeded him as President of the English Speaking Union of Pakistan. I got to know him better when he became Chairman of the FPSC, and visited Karachi frequently. I awaited his visits with joy, for we had a lot of fun together, always laughing and joking, mostly at our-selves, and exchanging strange anecdotes of our varying experiences in life. My other good friend and neighbour Admiral Ahsan, was alive in those days (he died in 1989) and whenever the three of us met the conversation in one form or another centred around the loss of East Pakistan. Attiq was, during those dreadful days preceding the final split, Governor of West Pakistan and Ahsan Governor of the East Wing. None of us had any doubts in our mind as to which selfish self-centred blackguard was truly responsible for the loss of half our country. But Attiq's first and prime interest was World War 1, the subject he preferred reading about above all others, and on which he was extremely knowledgeable. He would discourse at length and with passion on the awfulness of the battles of the Somme, of Paschendaele, of Ypres, of Arras and of Cambrai. WW2, in which he had fought, of course, also occupied hours of his reading time. He greatly admired the German army commanders, above all, Field Marshal Erich von Manstein. Dinners at my house were a ritual. Always, but always, a minute before the prescribed time, precisely at 2029, my dogs would bark to announce Attiq's arrival. My mother enjoyed the company of the two old warriors with their old-time manners. The way they greeted her, the way they addressed her, their conversation, all took her back to the good old days when men were gentlemen. At one of these dinners we decided that Lieutenant-General was too curt a title for Attiq, and that henceforth he would be known as 'Herr Generalfeldmarschall Attiq von Rachmann' and to complement which tall Ahsan (who had, during the Arakan campaign, won his DSC at sea) would bear the title 'Grossadmiral von Ahsan.' I was most keen that both these friends of mine, with their distinguished careers, holding high crucial office as they did at the saddest time in the country's history, should publish what they knew of the betrayals, the sordid deals, the wicked coercive powers, and all that led to the fall of East Pakistan. Ahsan said he would not, for if he were to write the truth as he knew it, he would hurt many that were still living and many relatives of those that were dead: He remained adamant, despite our protestations that he was denying history. Attiq did write his biography, which I had the great pleasure and the honour of publishing in 1989. Ahsan wrote the Foreword, from which I quote: Back to the Pavilion is a scintillating account of the life of an outstanding military leader of our times, adept at the use of pen as well as sword, with friendship for all and malice for none. Attiq is a fine example of courage, modesty and self-denial. Quite unconsciously, perhaps, he has always lived in accordance with the words inscribed on the walls of the Indian Military Academy at Dehra Dun: 'The safety, honour and welfare of your country comes first, always and every time. the honour, welfare and comfort of the men you command next. Your own ease, comfort and safety come last, always and every time.' Here is a totally honourable Army officer'..." Apart from all this, Attiq had a delightful sense of humour and was always game for a bit of horseplay. On one occasion when he arrived in Karachi on an FPSC visit, Amina Jilani (who had known him well since she was a child) and I went to meet him at the airport armed with a large red and black swastika on a very long pole. We grandly walked into the VIP room, satisfying the security men that we were there to greet our 'Leader.' A very apparent 'agency' man sidled up and asked, "Of which party?" The Pakistan People's Liberal Nazi Socio Democratic Communist Front, the alarmed spook was told. Attiq stoically smiling, didn't turn a hair. He played along. On the last visit he was able to make to Karachi, for an ESU meeting in November 1995, we took a drummer and a trumpeter to the airport with instructions that they play a military march as he emerged from the arrival lounge. They assured us they could play 'Colonal Bogey', but we failed to confirm their familiarity with military music and what greeted Attiq was a Punjabi wedding tune. As for these two photographs, on one occasion to prove that all army men are 'pongos', I handed the photo of Hesky Baig receiving the Sword of Honour at Dehra Dun in 1936 to Attiq, and to Hesky I handed Attiq's photo taken in 1939, and asked them to tell me which was which. Neither was able to say. can any of my readers spot the difference? How I will miss the Generalfeldmarschall. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960613 ------------------------------------------------------------------- Rich and poor, were all in this together ------------------------------------------------------------------- Benazir Bhutto LATER this month, the leaders of the Group of Seven  the seven most economically and militarily advanced nations  will sit down at the same table in Lyon, France. These powerful heads of state have many concerns, but their main focus should be the nations without seats at the table. The G-7 countries need to figure out what they can do to ensure a stable world, not only politically, but economically and socially. Why? If the current gap between the wealthy few and the disadvantaged many continues to grow, the whole world will suffer. Despite temporary economic difficulties, the G-7 nations are enjoying unprecedented prosperity. This prosperity has been accompanied by a growing indifference toward less prosperous nations, however. The upcoming meeting in Lyon is a perfect opportunity for the haves of the globe to demonstrate their willingness to assist the have-nots. Through their words and actions, they can make a real difference in the lives of millions. The troubles of the have-nots are great: too many countries lack resources, are mired in deep debt and have high levels of malnutrition. Other problems include low levels of medical care, illiteracy, no access to clean drinking water and no system of sewage, sanitation and drainage. Here in Pakistan, for example, I was horrified when, just after I became prime minister, I discovered that many major hospitals in our cities had no human-waste disposal systems. Hospitals lacked specialised care centers, such as burn units, which could have saved countless lives. Many died for want of proper medical care. We know what our problems are and we know what we must do to overcome them  but too often, we dont have the money required to meet our goals. Despite our best efforts, our countrys debt leaves very little room for human investment. The governments total income is 278 billion rupees. Of that, we spend 187 billion rupees on debt repayment alone. Thats 67 per cent of our budget! The golden years of the oil boom and foreign aid during the Afghan freedom struggle have faded away. Pakistan now has to stand on its own feet, but it is not an easy task. I have no doubt our people will rise to the challenge. But even our best efforts for years to come will leave too little for investment in social infrastructure and programmes to eradicate poverty... too little to spend on our women and children... to little for our future. These are the types of problems that the G-7 nations need to address in their upcoming meeting. They should look at the example set by the Scandinavian nations, which allot 1 per cent of their gross national product for assistance to developing countries. The Scandinavians have a truly global and humanitarian outlook to their foreign policy  an outlook the G-7 nations would do well to follow. French President Jacques Chirac, chair of the Lyon conference, is a man of immense understanding and great experience. I believe he understands the importance of reducing the gap between rich and poor, so I urge him to spearhead a drive to renew the G-7 pledge to devote at least 0.7 per cent of the member nations GNP to developing-country assistance. Another way the wealthy of the world can assist the developing countries is through mutually beneficial trade. I applaud the recent efforts of the G-7 nations to open global markets to the fruits of developing nations labour. Easier access to the markets of more affluent countries will give a welcome boost to the trade balance of developing nations, allowing them to purchase more of the sophisticated products that G-7 nations are so adept at producing. Now is not the time to introduce new conditions to enforce the social standards of the western world. These standards are made possible by prosperity  and if developing nations are not given a chance to attain that prosperity, they wont be able to achieve those standards. In this time of opportunity, when the ideological divisions of the cold war have ended, our responsibilities are in direct proportion to our abilities. We should all do our part in a new partnership for development and peace  a partnership that embraces not only East and West, but North and South. So, as the great leaders of the world gather around the table in Lyon, they can send a powerful message to the developing world: Were all in this together. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960613 ------------------------------------------------------------------- Politics of corruption ------------------------------------------------------------------- M.B. Naqvi IN politics the only issue that is receiving maximum attention is the question of corruption, especially in high places. The daily exchange of accusations between the government and opposition in every assembly and on the platform is the stuff of much of daily politics. Newspapers are full of it, both as news and comment. A lot of pontification is being done on the subject. This is so in many other countries also, especially neighbouring India. However, the issue should be seen in some perspective. Hard-headed practical people and pessimists among students of human behaviour assert that some corruption was always there and will always be there. Any conventional analysis of decision-making would show that some degree of discretion among officers of the state at many levels has necessarily to be permitted. It is impossible to constantly to supervise everyone in taking the necessary decisions or made to explain in detail every single decision taken. Wherever there is discretion, there is the scope for misuse of authority. Other things being equal, instances of corruption would correspond to the cultural and educational level of the society: it is a question of how permissive that society is of those who compromise their rectitude without enough opprobrium or whether the educational and cultural milieu of the society discourages greed and lack of integrity in individuals and places premium on rectitude in private and public affairs alike. We have to look inwards. Cries of corruption were loud and shrill from the very beginning in this country. Extraordinarily harsh laws were framed in the earliest years of independence and extensively used. The propaganda against politicians for being both corrupt and inefficient has been long and persistent. Indeed there are reasons to believe that there were certain unseen powers that organised regular vilification campaigns against all (civilian) politicians. No doubt, not all of it lacked a basis in fact, though most facts of corruption under military and authoritarian regimes go undisclosed and unpublicised because the Press is prevented from airing such facts. A credible presumption can be made that the level of corruption during unaccountable authoritarian regimes could only be higher  by virtue of being unaccountable. At one remove, our very folklore include plenty of stories that show what can only fall under the category of corruption. The civilisation as it grew on the subcontinent always included some corruption in public affairs, even if the standards of morality in individual lives in ancient times can be romanticised. The question arises why people show so much shock and disbelief when there is actual social acceptance of those who accumulate wealth through obviously corrupt means  well above their station in life. In fact possession of wealth is now virtually a justification of its own self, with no questions being asked about the means adopted except when there is some motivation to denigrate that person. Have people become generally more naive? Also if we look around, the incidence of corruption in the society is so widespread that almost all are ready to offer bribes, usually petty, to any government functionary to get their jobs done  not necessarily getting something illegal done. That would involve more than petty bribes. The things have come to such a pass that even for getting lawful things done by a common man, some amount of bribery has now become necessary. Indeed, a clerk in the Customs House once told the writer when queried over the informal fee for stamping the entry number on a Bill of Entry (for personal luggage): my salary is just Rs.; do you think I can live on it; I treat this salary as merely the payment for coming and going to the Customs House; if you want me to stamp the number, pay me a fee that will sustain me. The point is why should people be so prudish about such a prevalent thing. There are good reasons to believe that most major decisions and deals in recent years during different governments tenure were made in which the element of bribes could not have been absent. Should anyone now assert that a particular contract was awarded without kickbacks, it would raise more eyebrows than a contrary assertion would. Such is the prevalent level of corruption which in real life is the accepted thing. Why else would it be so prevalent? The question remains. Why so obsessive interest in corruption is being shown by our political class which has become its daily preoccupation, one way or another? One less-emphasised aspect needs to be noted. It cannot be without significance that this overemphasis on corruption is serving to hide a large number of hard and real problems facing the public life that should be a matter of far greater interest to the citizens. Are not common Pakistanis facing serious economic hardships because of high and persistent inflation for such a long period? Is unemployment not assuming alarming proportions? Every single service the state is (was) providing has gravely deteriorated in quality and is fast diminishing in quantity also even as its cost goes on escalating. Should that or should not that subject be discussed? The globalisation and free market policies, recommended by the multilateral agencies, have brought excruciating pain during the implementation of supposed reforms; should this not be widely discussed and more meaningfully? Pakistans sovereignty, especially in economic matters, seems to have gone for a Burton; the economy is virtually bankrupt and its credit rating in the world is less than desired. Is this being adequately debated? Clouds of war keep lowering between Pakistan and India and yet the politicos have little else on their mind than corruption. Is that not strange? It is not that one does not wish to contain the corruption phenomenon. Nor is it a fact that familiarity should breed de facto acceptance, thought it seems to be happening. Only, one merely wishes to keep the perspective straight: let us realise that fighting corruption is a long-term proposition and the more gimmicks are resorted to for cosmetically containing it the more it spreads. Look at the past instances: whenever more anti- corruption laws were made and more anti-corruption departments set up the more corruption grew. The process is well known. The political accountability process has invariably been misused for political purposes  another facet of secondary corruption. The point being made here is that the overemphasis on corruption serves as a shabby political manoeuvre: it is intended to shift attention from the problems that are crying to high heavens for attention. It is also a right- wing nostrum  a variant of the politics of God and country or its other, later version: clean and efficient government with the proviso that this or that saviour will, by virtue of his being more clean, inaugurate a veritable Wallahala. Let us guard against making corruption an all- absorbing obsession to hide other and uglier facts of national life. Let us think and do something about corruption by all means. But do let us be honest with facts and explanations. The problem should be approached in a proper, scientific frame of mind  and not for making a political ballyhoo. Corruption will begin being contained when the products of our schools, colleges, institutes, universities will possess a character and integrity and who are habitually truthful, law- abiding and cannot bring themselves to offer or accept bribes or do or accept undue favours. In their cases, their parents, spiritual and cultural influences and teachers will have done their duty by making them recognise the happiness that comes from pursuing higher values: human freedoms, truth, common weal and the desire to leave the world a bit better than one initially found. Goodness and rectitude cannot be forced on human beings  only hypocrisy can be or at least encouraged easily. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960608 ------------------------------------------------------------------- Lost in cyberspace ------------------------------------------------------------------- Mazdak FOR a country that professes daily that it wants to catch up with the rest of the world, successive governments have been doing everything they can to make that task an impossible one. Take the Internet revolution that has taken the world by storm as an example. Here is an inexpensive and accessible way of communicating with people around the world, accessing all kinds of information and being entertained without moving out of your home or office. Millions of people are using this exciting new technology for business and pleasure, and it is expected that the Net will alter the way computers are used and how we work within the next few years. When faced with the tremendous opportunities offered by this global network, what does the government do? It effectively slams the door shut. While the government is talking about software export, the Pakistan Telecommunication Corporation has retained its stranglehold on data transmission. Digicom, the only Internet server in the country, cannot accept more subscribers because it is not being given any more telephone lines. At the same time, PTCs few dedicated lines remain mostly unavailable. So effectively, PTC has virtually stifled on-line, real-time Internet access. For readers who are not plugged-in to what is happening out there in cyberspace, let me quickly sketch the contours of things to come. Basically, the Internet is a vast, autonomous network of computers that communicate with each other over telephone lines. Thus, sitting in Karachi, I can access libraries and databases in America, order books from London, and chat with my son who is studying in Los Angeles. In most other countries, charges for this digital globetrotting are nominal, and even Digicom in Pakistan bills you around a hundred rupees an hour. The catch, of course, is that lines are not available. Think about the possibilities of this breakthrough for a minute: much of the worlds vast store of information is now instantaneously available to us no matter where we live. Students, scientists and journalists can now tap into reference works, journals and newspapers in countries around the world. Similarly, Pakistanis and foreigners can now read this newspaper from wherever they are. Already, you can shop in electronic malls by simply browsing through the contents on your computer screen and ordering whatever you wish by punching in your credit card number. More and more people are working at home and sending and receiving documents to and from their offices. But this is not a column about the changes being wrought by the Internet; rather, it is about our reaction to it. Instead of propagating this technology and making it as widely available as possible in schools, colleges and laboratories, PTC has restricted its use by the simple expedient of limiting the number of telephone lines that can be dedicated to the Net. Basically, access is affordable only when a carrier obtains bulk rates which he can then pass on to subscribers. Ideally, entrepreneurs who use their own satellite links to make lines available as well as transmit data electronically on a commercial basis have made it possible for million to plug in. But here, a government monopoly refuses to permit the private sector a toe-hold in the market while it does nothing to give people access itself. This dog-in- the-manger attitude is depriving us of the opportunity to surf the Net. By its very nature, the Internet is a decentralised, anarchic network that has caught the major players in the computer world by surprise by its popularity and exponential growth. Belatedly, hardware and software manufacturers are scrambling to keep up with its rapid evolution. Typically, most governments are uneasy with the fact that no one person or organisation controls it: the Net has acquired a life and tempo of its own. You either keep up or get left behind. The problem in Pakistan is compounded by the fact that those making policy have no idea about the scale or potential of the Net. They have probably not surfed it themselves, and do not have the intellectual curiosity to attempt a glimpse into the future. And yet, despite this ostrich-like attitude, government spokesman never tire of announcing the intention of becoming an Asian tiger, and of soon becoming a major software exporter. India is already exporting a billion dollars worth of software a year, mostly to the United States. But the authorities there have shown more foresight by permitting exporters to set up their own satellite links. One of the concerns of authorities everywhere is about the possibility of the electronic transmission of pornographic material. Every medium is open to this misuse. Should we stop printing because the printing press can be used to produce smut? Ban all cinema and videos? The sad truth is that there is a widespread fascination  occasionally bordering on the perverse  in sex. But we cannot stop communicating because any medium can be used and abused for pornographic purposes. Another unstated fear of the government here is that messages and information on the Internet are virtually instantaneous and therefore not subject to censorship. While this is equally true for fax messages, at least intelligence agencies can get a copy by tapping a particular line. This is much harder on the Internet. But surely a new and vital technology cannot be kept out simply because it is difficult to keep tabs on. In his recent book Power Shift, Alvin Tofler has made the point that recent advances in computer technology have made it easier for developing countries to catch up. But by severely limiting access to the Internet, PTC is ensuring that we get left even further behind. This is the same compulsion that has impelled successive governments to try and brainwash us by controlling the electronic media. And while the Information Ministry has not been able to stop us from seeing and hearing the truth on CNN, BBC and Zee TV, it has done its worst by sending its dancing squares to block out offending sights on the foreign news broadcast locally by NTM. As pointed out by a columnist in these columns a fortnight ago, this kind of asinine contortions fools nobody, and succeeds only in revealing the uncertainty and paranoia of the government. While I am not plugged into the Internet, I do have e-mail, and it has become a pleasure bordering on habit to check my computer every morning for mail from my son. I fill him in on what is happening here, and he tells me about his life in the United States. In a sense, we have never been closer than we are now despite the vast distance that separates us. Although the endless possibilities of cyberspace beckon, PTC guards the doors to infinity.

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SPORTS

960610 ------------------------------------------------------------------- Pakistan bag Asian jrs hockey ------------------------------------------------------------------- KARACHI, June 9: Pakistan Juniors defeated India 2-1 in a sudden death playoff in the final of the Junior Asia Cup hockey tournament at the Delto Stadium, Singapore, according to a message faxed to Dawn. The match was played at a brisk pace and both the teams tried hard to gain ascendancy. Pakistan opened its account in the 5th minute through a penalty corner goal. India was awarded a penalty stroke through a foul by Pakistans full- back. Centre forward Arbheet Singh netted the goal in the 10th minute and levelled the scores 1-1. The Indian players gaining their confidence went ahead 2-1 through their centre forward Hasrat Qureshi, who scored from a direct penalty corner hit, a lead which India maintained till the breather. Full back Salim Ali netted the second goal for Pakistan after two minutes into the second half with a powerful shot from the rival goal-keepers rebound to draw abreast 2-2. The players of both teams then raided each others goal several times but in vain. Even penalty strokes could not break the stalemate as the fate of the match was decided through a sudden death. Pakistan then edged out India 2-1 and went on to win the final. Earlier, Japan shocked South Korea 4-1 on a penalty shoot-out and secured the third position in the Asia Cup junior hockey tournament. The match was drawn 2-2 and penalty strokes were awarded to decide the fate of the encounter. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960611 ------------------------------------------------------------------- Pakistans target is Olympic gold: Samiullah ------------------------------------------------------------------- A. Majid Khan KARACHI, June 10: Former Olympian Samiullah, new manager of the hockey team, after his return from Singapore, said Pakistans target is to win back the Atlanta Olympic title and for that we all have to work together like one man to come up to the expectation of the nation. Talking to Dawn, Samiullah, called in his hey days as Flying Horse on the left flank, said the Pakistan squad is good and capable of meeting the challenge successfully in the 12-nation Olympic hockey. The centennial Olympic Games will commence on July 19. Managing the Pakistan senior team for the first time, Samiullah, serving in the Pakistan Customs, stated our entire efforts should be directed to achieving the gold at Atlanta. The time is short and we face testing task of overcoming the challenges awaiting us within six weeks time, added the former Olympian. I know almost all the players of the Pakistan selected squad. They all also know me. We would be finding no communication problems in working out our plan to attain laurels and glory for Pakistan, emphasised manager Samiullah who tonight joined the team staying at a local hotel. I was immediately informed by the Pakistan Hockey Federation about my appointment of manager for the senior team Olympic as well as for the two European contests on telephone in Singapore where I was managing the juniors team competing in the Juniors Asia Cup, a qualifying round for next years juniors World Cup in England. I consider it an honour as well as a challenge as never before I had managed the Pakistan seniors team, stated Samiullah. I delayed my departure till Pakistan retained the juniors Asia Cup beating India last night and took the first available flight to take up my new assignment, said the new manager DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960612 ------------------------------------------------------------------- Stiff challenge in European contests: Mansoor ------------------------------------------------------------------- Sports Reporter KARACHI, June 11: Captain Mansoor Ahmed, with 209 international caps to his credit said here today that Pakistan would be facing a tough challenge in the six-league matches of the two four-nation hockey tournaments but we are confident that we would put up a gallant fight for victory. The other competing teams are reigning Olympic champions Germany, World Cup runners-up the Netherlands and host Great Britain, the 1988 Seoul Olympic winners. World renowned goalkeeper Mansoor, 29, stated like Pakistan, Germany, the Netherlands, are also strong contenders for the Atlanta Olympic gold and the coming two tournaments would provide a great opportunity to assess our own capabilities and also to overcome our weak points before we launch our assault on Atlanta Games, starting there on July 19. He said our target is Atlanta Olympic gold but Pakistans participation in the coming tournaments would further help in develop understanding and co- ordination on the 12 day tour of Europe. Both the tournaments are equally important for all the competing teams but for Pakistan it has assumed extraordinary importance as 1992 Barcelona Olympic champions Germany is in our group at the Atlanta hockey draw, emphasised the skipper. Germanys challenge had always been tough but Pakistan is equally determined to face it on the coming twin contests of Europe, as well as in Atlanta, he said. The Pakistan team is scheduled to fly tomorrow morning for London and from there it will go to Milton Keynes where the first four nation league starts on June 13. Pakistan would be getting hardly 20 hours rest before facing the Netherlands the next day on June 13. The next match will be against Great Britain on June 14. After a days rest the World Cup champions, Pakistan, will be up against Olympic gold winners Germany on June 15. The second two-nation league starts in Amstelveen (Holland)and Pakistan first meets Great Britain on June 19, play against Germany on June 20 and after a days rest the green-shirted Pakistanis face hosts the Netherlands on June 22 before returning home on June 25. The team is: Goalkeepers: Mansoor Ahmed and Khalid Mahmood Fullbacks: Danish Kalim, Naveed Alam and Rana Mujahid Halfbacks: Mohammad Usman , Mohammad Khalid, Malik Shafqat and Irfan Mahmood. Forwards: Tahir Zaman (vice-captain), Shahbaz Ahmed, Mohammad Sarwar, Mohammad Shahbaz, Rahim Khan, Mohammad Anis and Aleem Raza. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960613 ------------------------------------------------------------------- Shahbaz drops out of hockey teams European tour ------------------------------------------------------------------- A. Majid Khan KARACHI, June 12: Olympian inside left Shahbaz Ahmed of PIA was bitterly critical of the Pakistan Hockey Federation and pulled out of European tour of the national team, claiming that present atmosphere was not conducive for him as he fears vengeance from the team management. Addressing a Press conference at a local hotel former Pakistan captain said it does not make any difference whether he plays or he does not play in the present Pakistan selected team. The Pakistan team , even without me , had won the six- nation Atlanta pre-Olympic Tournament , cited Shahbaz an example in support of staying back here at the eleventh hour. I feel happy that I am not playing in such an atmosphere as my relations with the PHF bosses are very strained. My mother and wife both advised me to skip the European tour in the present situation created by the hockey establishment, stated Shahbaz Ahmed, under whose captaincy Pakistan had won the 1994 Sydney World Cup. Shahbaz, with 230 caps in his belt, expressed his apprehension that he might have not been given a fair treatment by the team management whose appointment was not made in consultation with seniors players, including himself, in the wake of Senate Standing Committee on Sports meeting held in Islamabad on June 3 to resolve the hockey crisis. When questioned that the Senate Standing Committee on Sports, so far, has made no observation and comment over the naming of the team management and other related issues, Shahbaz replied that it has surprised him also. To another question whether he has also opted himself out of the Olympics, commencing in Atlanta from July 19, Shahbaz replied that he cannot say it just now. I had always played for the countrys honour and glory and acted against the medical advice in 1993 when the experts in London medical check-up advised me to stop playing for the good of your health he said. The nation wanted my services and I continued to play and Pakistan won back the Sydney World Cup in I994, stated the Olympian inside left who captained Pakistan for the bronze medal in 1992 Barcelona Games. However when further questioned, in case, the countrys higher authorities ask you to reverse your decision as you did last year when you altered your retirement decision after winning the World Cup, Shahbaz replied, One has to do it. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960611 ------------------------------------------------------------------- Yawar confident of success on England tour ------------------------------------------------------------------- *From Ilyas Beg LAHORE, June 10: Tour Manager of the 17-member England-bound Pakistan cricket team, Yawar Saeed, said on Monday that he was totally satisfied with the response of the players after his first meeting with them. They were conscious of their responsibilities as ambassadors of Pakistan, on-and-off the field and looked confident to fight as a single unit to beat England on its soil in the ensuing Tests and one-day international series, Saeed said. Talking to this correspondent shorty after the meeting at the Qadhafi Stadium, Yawar Saeed said he could not say anything on behalf of the Pakistan Cricket Board (PCB) or the national selectors. However, he had been assigned the task of talking to the 17 cricketers and develop an understanding with them so that the team does its best on the tour. While replying to a question, the Tour Manager said that the cricketers from Karachi will return home on Tuesday (June 11) evening. The boys belonging to Lahore may continue their training here till the departure of the team. The 17 cricketers will re-assemble at a five-star hotel in Lahore on the evening of June 16 and fly to Amsterdam through a PIA flight on June 17 at 5-00 am to play two goodwill matches against Holland at The Hague. The team official said that Pakistan cricket team will leave for Birmingham from The Hague on June 21. That implies that no change is expected in the England-bound Pakistan team.

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