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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 15 February 1996 Issue : 02/07 -------------------------------------------------------------------


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, not exceeding 50 lines, can be used provided that this entire header is included at the beginning of each extract. We encourage comments & suggestions. We can be reached at: e-mail dws@dawn.khi.erum.com.pk dws%dawn%khi@sdnpk.undp.org fax +92(21) 568-3188 & 568-3801 mail Pakistan Herald Publications (Pvt.) Limited DAWN Group of Newspapers Haroon House, Karachi 74400, Pakistan TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL ADDRESS! (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

CONTENTS


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NATIONAL NEWS

US reports speculative, Assef tells Talbott US defers decision on alleged Chinese technology sale to Pakistan No early solution to Kabul issue in sight: FO Food convoy crosses border : Factions open route to Kabul India willing for talks with Kashmiris Indias N-plan a threat to region India, Pakistan urged to cut forces by 25 pc Pakistan may ask US not to send Orion planes SA group says Pakistan missile deal at risk UK decides to deport : Pakistan HC employee Go-ahead given to Gwadar port plan Nawaz wants Sindh PA dissolved Three MQM men killed in encounters Youth killed, eight houses looted ---------------------------------

BUSINESS & ECONOMY

Trade deficit swells to $2.25bn during 7 months Rs 46.117bn received through the sale of 100 units IMF okays Pakistans financial measures Pakistan has a clogged pipeline of $10 bn aid CPI shows increase of 11.06 per cent SBP, CLA need internal reforms, notes ADB study OGDC discovers gas reserves near Sanghar Turnover soars to 56m shares: index up by 65.38 points ---------------------------------------

EDITORIALS & FEATURES

Within the realms of probability Ardeshir Cowasjee A stranger in the House By Hafizur Rahman The mystical element in Pakistani politics By Ayaz Amir Defining Mohajir grievances Kaiser Bengali The World Cup By Omar Kureishi The road to economic recovery Sultan Ahmed -----------

SPORTS

The fascinating saga of World Cup World Cup gets under way with hi-tech glitz Pakistani cricketers in India after 7 years Bal Thackerays lurking ghost buried Cup organisers harden stance on Lanka matches Australia, W.I. face fines of multimillion dollar Now Aussies boycott Madras Solidarity show by Pakistan, India =================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

NATIONAL NEWS

960210 ------------------------------------------------------------------- US reports speculative, Assef tells Talbott ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Feb 9: Pakistans Foreign Minister Sardar Assef Ahmed Ali had a 70-minute meeting with US Acting Secretary of State Strobe Talbott and both sides later said the Chinese transfer of nuclear ring magnets was discussed but US had not yet decided whether to impose sanctions. A State Department spokesman told the regular briefing Talbott and Sardar Assef reviewed a wide range of issues including US-Pakistan relations, regional security, Afghanistan and nuclear non- proliferation. Sardar Assef told reporters in a brief chat that the US had no reason to be concerned about close relations between Pakistan and China as the US intelligence agencies reports were entirely speculative Theres no truth in them. We have flatly denied that any such thing has happened, the Foreign Minister said, adding Pakistan had very good relations with China but theres nothing that should be of concern to the US. Sardar Assef was having more meetings with US officials later on Friday. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960215 ------------------------------------------------------------------- US defers decision on alleged Chinese technology sale to Pakistan ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Feb 14: The White House again deferred a decision on the alleged sale of nuclear technology by China to Pakistan but Defence Secretary William Perry issued, by far, the most clear warning to Beijing, saying that the US engagement policy is not a one-way street. Giving details of what laws may be invoked if the administration determined that the Chinese had transferred ring magnets to Pakistan, Washington Times said on Wednesday that China had violated Articles I and III of the NPT as well as Sections 821, 822(a)(1), 822(a)(2), 824(a), 825 and 826 of the Nuclear Proliferation Prevention Act, 1994. Pakistan had violated Section 822(b) and 826(a) of the same act. The paper said in an article, written by William Triplett, that the ring magnets would allow Pakistan to effectively double its capacity to enrich uranium for nuclear weapons production and these magnets represented a substantial qualitative leap over anything Pakistan possessed in the past. It said that as a result of these violations, Pakistan, as the receiving country, would be denied economic and military assistance, including arms sales from the US while China would face serious consequences. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960209 ------------------------------------------------------------------- No early solution to Kabul issue in sight: FO ------------------------------------------------------------------- Hassan Akhtar ISLAMABAD, Feb 8: Foreign Secretary Najmuddin Sheikh, who had held separate meetings here with Iranian Deputy Foreign Minister Allauddin Brojourdi and the Uzbek Afghan commander of north Afghanistan, Gen Rashid Dostum, has hinted that a peaceful settlement of the Afghan civil war continued to remain evasive and no one should expect an early solution to the problem. During his weekly news briefing at the Foreign Office, he said he would not say that there was an air of optimism in his discussions with Mr Brojourdi. Although, the foreign secretary described his meeting with the Iranian foreign minister as most cordial, he conceded that Pakistan and Iran differed in their attitudes towards a continuation of the Rabbani regime. Pakistan had termed the Rabbani regime illegitimate, while Iran believed that it would do business as usual with the regime. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960215 ------------------------------------------------------------------- Food convoy crosses border : Factions open route to Kabul ------------------------------------------------------------------- KABUL, Feb 14: A convoy of 18 United Nations trucks left Pakistan en route to the beleaguered Afghan capital, carrying tons of much needed food supplies, UN officials said. The trucks were to travel via Jalalabad to Kabul. Pakistani border officials confirmed the convoy passed into Afghanistan at about noon. A Defence Ministry spokesman said the government and Hezb-i-Islami factional commanders signed an agreement that should guarantee safe passage along the road. The International Committee of the Red Cross recently began an air lift operation to bring essential food and medicine to Kabul. The government also claimed to have secured an agreement with the Hezb-i-Islami for the restoration of electricity to Kabul. The main power plant for Kabul is controlled by rebels just east of the city, leaving the capital without electricity for almost three years. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960211 ------------------------------------------------------------------- India willing for talks with Kashmiris ------------------------------------------------------------------- Umashanker Phadnis NEW DELHI, Feb 10: Senior officials of the Home Ministry have taken note of the statement of the four militant leaders issued in Srinagar on Thursday offering to respond to an unconditional dialogue on the Kashmir issue and before the Home Minister, S.B. Chavan, comes up with an action-oriented reaction, the statement will have been scrutinised in all its aspects. For the time being, however, Mr Chavan made a non- committal welcome statement on TV although he is yet to be more definitive on the offer. The home secretary, K. Padmanabhiaiah was, however, a little less reticent and said both the prime minister and the minister of state Bhuvnesh Chaturvedi have stated that the government was open for talks with anyone. Here are these people saying that the gun has not worked and that they would like to talk. We will certainly pick it up and explore the offer. Two factors with which the Home Ministry will be undoubtedly seized are, firstly, what the impact of the militants offer has on the thinking of the other militant groups and, secondly, a related question on the hold the leaders have over their respective organisations. There are also other issues involved such as whether the militant leaders will be willing to accept the governments precondition that any solution of the problem would have to be within the confines of the Indian constitution in as much as the leaders have said that their objective was freedom of the Kashmiri people. The rather subdued reaction of the Hurriyat is being interpreted to mean that its leaders and spokesmen are not too sure of the stand of its 30 odd constituent units which are known to be pulling in different directions both in respect of the means and end in respect of their objectives. One of its constituents, however, the commander- in-chief of the banned Jammu and Kashmir Liberation Front Rafiq Ahmad for (Yeaseen Group) has questioned the credentials of the four militants and has said they had no right to take such a step as they were expelled from their parties. Mr Shabir Shah, who has been actively working towards a negotiated settlement of the Kashmir problem, did not quite denounce the initiative of these militants but held the view that the proposal of the young leaders did not make any sense as the issue demands to be resolved with Pakistan which too is a party to the dispute, pointing to the failure of the 1966 Tashkent and the Simla agreement of 1972, he said, however, the two countries had to realise the basic reality and accept Kashmiris as a party to the dispute and said unless the tripartite talks are held, no solution be should possible. In contrast to the reaction of these leaders, some of the militant groups denounced the four as Indian agents and called upon them to clarify their stand at the earliest or otherwise be prepared to face the severest of punishments. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960214 ------------------------------------------------------------------- Indias N-plan a threat to region ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Feb 13: Former prime minister and opposition leader Nawaz Sharif has proposed a four-point interim nuclear arms control agreement for South Asia. Mr. Sharif was addressing the prestigious conference on nuclear non- proliferation, hosted by the Carnegie Endowment for Inter-national Peace. The four points proposed by Mr Sharif are: 1) India to freeze its nuclear programme since Pakistan has already done so; 2) Pakistans need to have a sufficient nuclear deterrent against India be accepted; 3) Both countries sign the NPT and the CTBT and refrain from carrying out any test or deployment of medium or long-range missiles against each other; and 4) Both countries sign the fissile materials cut-off convention and also agree to account for their existing fissile stocks. Non-proliferation will be successful in future if it becomes relevant to ground realities, Nawaz Sharif told the conference in which he laid out the threat perception of Pakistan vis-a-vis India and asked the world experts to put themselves in Pakistans shoes to realise its predicament. Imagine if you were a small country with only a conventionally equipped and relatively a much smaller defence capability, and you had to face a hostile neighbour six times your size, with a threatening arsenal of nuclear and non-nuclear weapons, medium and long-range missiles loaded with nuclear heads along its borders and targeted on all the key installations of your country, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960211 ------------------------------------------------------------------- India, Pakistan urged to cut forces by 25 pc ------------------------------------------------------------------- Bureau Report LAHORE, Feb 10: The Pakistan-India Peoples Forum for Peace and Democracy has taken serious view of the rise in what it calls aggressive militarism in India and Pakistan and has asked the governments of the two countries to abstain from developing, manufacturing and deploying nuclear devices, reduce their conventional forces by 25 per cent and resume talks on all outstanding issues at the highest level. The Forums joint committee, in a statement simultaneously issued from Lahore and New Delhi, said: The Pakistan-India Peoples Forum for Peace and Democracy takes a serious view of the disturbing rise in aggressive militarism in both India and Pakistan recently. Continuous and wholly uncalled for exchange of fire has been taking place across the Line of Control in Jammu and Kashmir, taking a very heavy toll of innocent lives in at least one tragic incident. Both governments have reiterated their resolve to keep the nuclear option open. India has tested a surface- to-surface missile, provoking Pakistan to vow not to stay behind. Both sides have announced plans to acquire unaffordable military hardware on a large scale, ostensibly to match or out-match the other side. The Forum is convinced that the common people in both the countries need and earnestly desire peace. Their governments are, however, bent upon not only continuing a suicidal arms race but escalating it to ever higher and more dangerous levels. The Forum therefore appeals to the governments of India and Pakistan to pay heed to what their peoples want, as reflected in the recommendations drawn up by over 200 prominent citizens from both sides. These require (1) both governments to abstain from developing, manufacturing and deploying nuclear devices, (2) both sides to reduce their conventional force level by 25 per cent and (3) both governments to resume talks on all outstanding issues at the highest level. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960209 ------------------------------------------------------------------- Pakistan may ask US not to send Orion planes ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Feb 8: Pakistan is likely to ask the United States not to send the three P-3C Orion naval reconnaissance aircraft as part of the $368 million equipment, released as a result of the Brown Amendment but not yet shipped to Pakistan. Competent defence sources told Dawn the three aircraft were the largest and the most important part of the package and accounted for $139.1 million out of the total of $368 million. A request in this connection may be made as early as Friday or Saturday when the Foreign Minister, Sardar Assef Ahmed Ali, meets Defence Secretary William Perry, or it might be postponed until the meeting of the Programme Management Review (PMR) later in March. Islamabad may instead ask the US authorities to dispose of these planes to a third party and pay them in cash, like the F-16s these sources said. The definite reasons for a re-thinking in Islamabad for not accepting the three aircraft were not available but experts involved with defence sales said the Pakistan Navy would be very uncomfortable with these aircraft and might have objected to their shipment as they would be difficult and costly to maintain. A competent source confirmed that the Navy had some reservations about the P-3C aircraft on the grounds that looking after just three planes would be uneconomical and not viable for the Navy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960214 ------------------------------------------------------------------- SA group says Pakistan missile deal at risk ------------------------------------------------------------------- JOHANNESBURG, Feb 13: A South African arms group said the leak of sensitive information about the proposed sale of missiles to Pakistan placed the deal at risk. We are busy negotiating (with Pakistan), but to date no business transaction has been concluded, Paul Holtzhausen, spokesman for the Denel arms group, said. We regret that certain sources chose to precipitate business information...thereby placing important international transactions of this nature at risk, he said. Holtzhausen said he was not able to provide any more information about the potential deal, which a South African newspaper quoted informed sources as saying was worth 164 million dollars. The Business Report said negotiations between Denels Kentron arms company and the Pakistanis were at an advanced stage. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- UK decides to deport : Pakistan HC employee ------------------------------------------------------------------- Our Correspondent LONDON, Feb 12: Britain announced the deportation of a non-diplomatic employee of the Pakistan High Commission in London for reasons of national security. The decision came in the backdrop of a newspaper report that an employee of the high commission had been caught procuring equipment needed to run nuclear plants. Mohammad Saleem, a locally recruited staffer of the Pakistan mission, has been served with the deportation order by the Home Office. He has 14 days within which to appeal to the Home Office. A British Foreign Office spokesman confirmed that the deportation order had been served on Mohammad Saleem and the Pakistan High Commissioner had been told about this. The Home Office said that Mohammad Saleems presence in Britain was not conducive to public good. British Officials said that the move was made for reasons of national security. They said national security given as the reason for deportation included activities connected with the spread of weapons of mass destruction, implying that the deportation order was in some way connected with Pakistans nuclear programme. The Evening Standard on Monday claimed that on three occasions last year British Customs had blocked shipments of sensitive equipment to Pakistan. The equipment alleged to have been purchased in the name of Global Consultants, a Pakistani firm. Mohammad Saleem did not hold diplomatic status in the High Commission. The Pakistan High Commissioner in the United Kingdom, Mr Wajid Shamsul Hasan, said Mohammad Saleem was a clerk in the accounts department of the High Commission and had been hired locally about six years ago. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- Go-ahead given to Gwadar port plan ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Feb 12: The federal government has formally decided to go ahead with the construction of the much- delayed and controversy- ridden Gwadar port. Informed sources told Dawn here that the massive and strategically important project, costing Rs 24 billion, was accorded formal approval by the Planning Commission Deputy Chairman, Kazi Alimullah, at a central development working party meeting. The government will arrange Rs 11 billion through federal annual development programme (ADP) while Rs 13 billion in foreign exchange is being mobilised from other sources. Located opposite the Straits of Hormuz, it will serve as a mother port, providing warehousing, transhipment and industrial facilities for trade with over 25 countries, including the Central Asian states, Afghanistan, the Gulf states, East Africa, Red Sea countries and north-west India. The objective of the project is to meet the countrys strategic needs and serve as a standby to Port Qasim and the Karachi Port in case of any emergency. The scheme provides for the construction of a deep- sea port at Gwadar in two phases. The first phase will be carried out under the public- sector development programme, and the second phase will be taken up by the private sector. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- Nawaz wants Sindh PA dissolved ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Feb 12: Opposition leader Mian Nawaz Sharif warned that the Karachi situation would become irreversible if the Benazir Bhutto government was not removed during the current year. Anything could happen, he told Pakistani correspondents and local Pakistan TV channel representatives when asked whether Karachi was heading towards independence. In his opinion the Benazir government was no longer in a position to resolve the Karachi problem. Altaf Hussain told me that the day this government was removed, 75 per cent of Karachis problem would be over and the rest could be discussed between parties who trusted each other. Asked how could the situation be brought back to normal, Mr Sharif said the Sindh Assembly should be dissolved and under Article 234, a new chief executive of the province should be appointed in consultation with the MQM and the opposition. We had proposed this and the MQM would also have agreed to the idea but the PPP rejected it. The army would also have supported it, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960212 ------------------------------------------------------------------- Three MQM men killed in encounters ------------------------------------------------------------------- Staff Reporter KARACHI, Feb 11: Sheikh Rehanuddin alias Rehan Langra, an MQM activist, was gunned down in what the police described an encounter in Sector 11-A, North Karachi. His body was found in the upper storey of an underconstruction house in 11-A, FT/24, where a shoot-out allegedly took place between Naeem Sheri group and the police. However, Naeem Sheri, Shabir Nai, Tariq Chamber and Baber Lahoti, managed to escape. During the encounter, police claimed, Rehan Langra was killed and other suspects escaped. Rehan was said to be involved in 48 cases, including killing of Chaudhry Mohammad Aslam, SHO of the Al-Falah police station and two constables. Meanwhile, MQM Chief Altaf Hussain condemned the killing of Rehan Langra and claimed that the police had arrested him two days back and killed him in a fake encounter. ***** TWO KILLED: Two MQM workers were killed in what police claimed was an encounter with law enforcement agencies in Orangi Extension. The two workers  Siraj Muslim and Ibrar Salim  the police claimed, were killed when a shoot-out erupted during a raid on suspected house in Ghazi Nagar by rangers and police. In the raid, it was claimed, four suspects who were inside the house fired at the rangers and the police. In the gunbattle which ensued two of them were killed. A pistol and a mouser belonging to the two were found. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960215 ------------------------------------------------------------------- Youth killed, eight houses looted ------------------------------------------------------------------- Staff Reporter KARACHI, Feb 14: A young man was killed, eight houses, a money changer and a transporter were looted in armed hold-ups in the city. According to police, a gang of bandits raided a village in Surjani Town and held the occupants of eight houses hostages at gunpoint. Later, as they were relieving them of their cash and valuables, one of the occupants, Fazal Rahat, 24, a labourer, resisted them. The bandits opened fire at him and got away with the booty. Fazal Ahmed, hailing from Quetta, died on the spot. His corpse was taken to the Abbasi Shaheed Hospital. In another incident in the same police jurisdiction, the owner of Chand money-changer was robbed of Rs 700,000 at gunpoint. According to an eyewitness three alleged bandits barged into the office of the money-changer, opposite Nigar Cinema and robbed Rs 700, 000 at gunpoint. Two of them fled with the cash and a third one, Raziman, was shot at by a shopkeeper and overpowered. He was hit in a leg and was taken to the Civil Hospital.


BUSINESS & ECONOMY

960212 ------------------------------------------------------------------- Trade deficit swells to $2.25bn during 7 months ------------------------------------------------------------------- Staff Reporter KARACHI, Feb 11: Pakistans trade deficit during the last seven months amounts to more than 2.25 billion dollars. It exceeds projected trade imbalance for entire 1995-96 and represents more than twice of 1.09 billion dollars loss suffered in international trade during first seven months of 1994-95. Official trade figures released depict an extremely dismal export performance during January amounting to 648 million dollars which is about 10 per cent lower than 717.153 million dollars earned a month earlier in December 1995. It is hardly 2 per cent higher over 635.67 million dollars export earnings during January 1995. In the last seven months, Pakistans total exports were to the tune of 4.16 billion dollars indicating a fall of 4.3 per cent over 4.35 billion dollars earned during July to January 1994-95 period. Import bill during the same period went up to 6.42 billion dollars showing a rise of almost 18 per cent over 5.45 billion dollars during 1994-95. Businessmen fear trade deficit touching the alarming figure of 4 billion dollars by June next if governments measures to reverse the downslide of exports and arrest import spiral fail. Even the stand-by arrangement of foreign exchange cushion, obtained from the World Bank would fail to absorb the mounting trade deficit and could plunge country into a situation from where it would be most difficult to retrieve, a leader of an export association remarked. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960209 ------------------------------------------------------------------- Rs 46.117bn received through the sale of 100 units ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Feb 8: The Privatisation Commission has received a total of Rs 46.117 billion after selling out 100 state-owned enterprises and all the 20 remaining units will finally be sold out by 1996. There is not much delay in privatising the public sector units and we are hoping to complete the entire privatisation programme by end this year, said Chairman Privatisation Commission Syed Naveed Qamar. According to the details, the Privatisation Commission collected Rs 30.5 billion on account of partially privatising the Pakistan Telecommunication Corporation (PTC) of which Rs 27.5 billion ($862 million) came through the sale of its foreign shares while Rs 3 billion were received from local subscription. The Commission acquired Rs 3.392 billion from the privatisation of banks. Also Rs 12.225 were collected through the sale of industrial units, of which Rs 4.255 billion came during the present government. Answering a question, Syed Naveed Qamar said that now there was a turn for privatising bigger units like Heavy Mechanical Complex (JMC), Pakistan Machine Tool Factory (PMTC) and Pakistan Steel Mills. This process has in fact started with the taking up of bigger units like Pak-Saudi Fertiliser and Wah Cement, he added. Moreover he pointed out that the work is under way for the privatisation of the United Bank, Bankers Equity and Faisalabad Electricity Board. Similarly, work on the privatisation of Karachi Electricity Supply Corporation (KESC) has also been started simultaneously. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960211 ------------------------------------------------------------------- IMF okays Pakistans financial measures ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Feb 10 : The International Monetary Fund (IMF) gave a clean bill of health to the Pakistan economy here, and promised to offer soon the second tranche of $80 million out of $600 million standby loan. Pakistans economy is poised to achieve 5.5 to 6 per cent GDP growth, reducing inflation from 15 to 10 per cent, while foreign exchange reserves are improving and the budget deficit is declining, Mohammed A. El-Erian, head of the visiting IMF delegation, announced. He pointed out that since the Pakistan economy had performed well, the cancelled extended structural adjustment facility (ESAF) would soon be re-negotiated to resume $1.5 billion lending programme. The way the government is pursuing its economic policies, we are sure it would further reduce inflation, strengthen balance of payments and considerably curtail the budgetary deficit, he added. Asked to comment on Prime Minister Benazir Bhuttos statement that everything would be taxed and whether it was due to the IMF pressure, he said his organisation supported Pakistans efforts to broaden the current tax base. If you want to reduce fiscal deficit and increase funding for social sectors then you will have to widen your tax base, he added. When the head of the IMF mission was pressed further over the issue, Mr Jafarey came to his rescue by saying: You people are referring to sales tax which is currently on the manufacturing stage and the government has not decided, so far, on which items it is to be levied. Asked why the IMF was insisting on the GST and not putting pressure on the real introduction of the agricultural income tax, Mr Erian said Pakistan had, in principle, agreed to levy that tax and that the government had taken steps to widen the net of that tax. At this stage, Mr Jafarey pointed out that the governments of Balochistan and the NWFP had already introduced that tax while it would soon be introduced in Punjab and Balochistan. Nevertheless, agricultural income tax was a provincial subject and we cannot force them to go for it, he said, adding that wealth tax was a federal subject which was effectively being imposed. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960210 ------------------------------------------------------------------- Pakistan has a clogged pipeline of $10 bn aid ------------------------------------------------------------------- Ihtasham Ul Haque PAKISTAN is facing great hardships in receiving timely foreign aid, specially because of not utilising the aid of over $10 billion in the pipeline. Prime Minister Benazir Bhutto has been writing individually to all the concerned ministers to double their efforts to utilise this huge assistance. In a letter written to Minister for Industries and Production, Brig. (retd) Muhammad Asghar, the Prime Minister asked him to gear up his efforts for receiving adequate foreign assistance and ensure that this did not lapse due to one reason or the other or resulted in contributing to the addition of the already big pipeline. I am writing to draw your attention to a subject which is of great significance in the changing environment of the global economy. In the post-cold war world, access to concessional assistance is becoming increasing difficult. The proper and timely utilisation of viable assistance, has therefore, assumed greater importance. Although we were able to mobilise record level of foreign project assistance amounting to $2.714 billion during the late financial year in the public sector, we have to demonstrate to the donors that we put this aid to best use, and in accordance with the shared priorities. I would, therefore, like to see every effort made to ensure timely and effective utilisation of aid already committed. We have built up a pipeline of over $ 10 billion with a significant number of projects moving slowly for one reason or the other and you will appreciate, that there is no substitute for good performance when making a case for further assistance, the Prime Minister said. The Prime Minister is said to have taken a serious notice of slow utilisation of foreign aid and asked the officials of important ministries to look into the issue of slow utilisation of foreign aid with details about their slow moving projects by saying, my office will put up the next aid utilisation report in April 1996 and I hope that you will be able to show better performance, Prime Minister Benazir Bhutto further stated in her letter. One of the major reasons for slow utilisation of foreign aid, according to officials, is the non-availability of matching rupee resources in view of the acute budgetary constraints. Also red-tapism in the bureaucratic set up is causing a problem for having timely foreign assistance. Here the Prime Minister is said to have also directed the senior officials of the important ministries to address the issue and ensure that the aid in the pipeline is not further increased and that the issue may not become an embarrassing factor at the time of presenting the countrys case to the Aid-to-Pakistan Consortium meeting in April at Paris. The Paris Club has been warning Pakistan to arrange matching rupee component and remove other bureaucratic bottlenecks for offering timely foreign assistance, in the absence of which aid in the pipeline has reached to over $10 billion . During Nawaz Sharifs period the consortium had regretted to the then Minister for Finance Sartaj Aziz at the Paris Club meeting to commit new assistance for 1991-92 by saying that Pakistan should first utilise the aid in the pipeline built over a period of many years. The post budget estimates prepared by the Ministry of Finance reveals that Pakistans total outstanding debts are to the tune of 30.7 billion at the end of 1994, out of which only $21 billion has been disbursed and $10 billion is still in the pipeline. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- CPI shows increase of 11.06 per cent ------------------------------------------------------------------- Muhammad Ilyas ISLAMABAD, Feb 12: The rate of inflation registered an increase of 11.06 per cent during July-January, 1995-96 over the corresponding period of the last financial year, according to the figures released by the Federal Bureau of Statistics here. It is up from 10.11 per cent of the first half of 1995-96. During the single month of January, Consumer Price Index (CPI), which is deemed to stand for rate of inflation, with 1990-91 as base stood at 169.41. Thus, the increase was of 0.37% over the Index of December 1995 when it was 168.78. During January, 1996, all the group indices of the CPI showed an increasing trend except food, beverages and tobacco, which group index recorded a decrease of 0.37% over the previous month, FBS stated. This was attributed to the decrease in the prices of tomatoes, cabbage, carrot, peas, farm eggs, potatoes, onions, cauliflower, guava, ice, radish and spinach. The consumer price index for January, 1996, as compared to January, 1995 showed an increase of 8.93%. Food, beverages & tobacco group recorded an increase of 6.21%; apparel, textile & footwear 10.79%; house rent 9.23%; fuel & lighting 13.6%; household, furniture & equipment etc. 14.06%; transport & communication 12.76%; recreation, entertainment & education 17.19%; cleaning, laundry & personal appearance 17.06% and medicines group 9.37% over the corresponding month of last year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960211 ------------------------------------------------------------------- SBP, CLA need internal reforms, notes ADB study ------------------------------------------------------------------- Muhammad Ilyas ISLAMABAD, Feb 10: The capital market in Pakistan, in order to emerge as a stable and credible source of investment, still needs professionalism in its management as well as a much more strengthened regulatory system. This was stressed by a financial sector expert, who is closely associated with stock market operations in the country. He also stressed that it was now the time that the stock exchanges moved rapidly towards automation and the development of Central Depository which would enable book-based settlement system. Besides streamlining the settlement procedures, Central Depository would also help in bringing about transparency of trading. It is due to the lack of full transparency and, therefore, confidence that, remarked an Asian Development Bank study, the stock market is not perceived by the average investor to be either efficient or fair and judicious in terms of providing the investor a fair return. He, therefore, prefers to invest his savings in multi-national corporations. It, therefore, stressed: Incentives must also be provided for greater self- regulation. The study had pointed out a number of inefficiencies that impeded the growth of securities markets in Pakistan: First, settlement procedures are cumbersome and slow. It can often take 90 days to buy and register a scrip. Disclosure is generally inadequate, reducing investor confidence. Almost 40 to 50 per cent of transactions are not reported by the market information facility, since they do not go through the clearing house. Insider trading is widespread and penalties are inadequate, although recent legal reforms have tried to address some of the difficulties. In order for the CLA to play its role as the most effective regulatory body, it is essential that the many deficiencies in its staff be done away with and systematic, consistent efforts made to induct professional people and develop skills for tackling highly ticklish technical challenges. Without such staff and adequate funds, CLA would continue to be handicapped, especially in dealing with companies which can engage the most expensive lawyers to represent their case. It would also be seriously handicapped if it does not have full autonomy, administrative as well as financial, and is perpetually saddled with interference in its functioning as a neutral, specialised body with its key functionaries enjoying security of tenure, the expert stressed. In order to ensure that it can perform its regulatory functions fairly, he cited the example of a neighbouring country where the CLAs counterpart has been given quasi-judicial status. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960214 ------------------------------------------------------------------- OGDC discovers gas reserves near Sanghar ------------------------------------------------------------------- Our Correspondent ISLAMABAD, Feb 13: A condensate gas discovery was made by the Oil and Gas Development Corporation (OGDC) at Chak Dim-5 about nine kilometre north-west of Sanghar Town. According to a Press release, the exploratory well flowed at the rate of 1130 barrels of condensate and 9.4 million cubic feet of gas per day when put on a short test through half inch choke. The reserves have been found at the depth of 2860 meters. OGDC started drilling at Chak Dim-5 on November 29, 1995 and the well was drilled to a total depth of 2908 meters. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960215 ------------------------------------------------------------------- Turnover soars to 56m shares: index up by 65.38 points ------------------------------------------------------------------- Commerce Reporter KARACHI, Feb 14: Volume soared to attain the second-best single session figure at 56 million shares, surpassing its last June 13 record of 46.5 million shares as both PTC vouchers and Hub-Power were massively traded, accounting for 43 million shares out of the total. The KSE 100-share index was last quoted at 1,823.10 as compared to 1,757.72, breaking the barrier of 1,800 points with a wide margin, indicating that it is now heading towards its new chart point of 2,000. Todays big show both in terms of big increase in the this index and volume was largely the individual show as bulk of the support was confined to PTC vouchers and Hub-Power. Both the shares turned out a massive activity of 43 million shares, out of the total volume of 56 million shares, dealers said. While PTC vouchers were massively traded, up Rs 2.35 on a volume of over 25 mill ion shares on heavy foreign buying caused by news of sharp increase in prices of its GDR. Hub-Power followed it, which traded about 18 million shares with a fresh gain of 20 paisa. Another notable feature of the day was a big spurt of Rs 45 in Parke- Davis after the news of a final dividend at the rate of 80 per cent, which made the total for the last year to 160 per cent as the management had already paid an interim dividend of an identical amount. After the announcement of interim dividend last year, its share value had hit the peak level of Rs 850 before falling to Rs 450 in late sell off. It was quoted around Rs 650 after the announcement of the dividend. Other actively traded shares were led by Lucky Cement, higher 65 paisa on 1.313 million shares, LTV Modaraba, up 50 paisa on 870,000 shares, Dhan Fibre, steady 55 paisa on 834,000 shares, and Faysal Bank, higher Rs 1.15 on 760,500 shares. Dewan Salman after a relative quiet for the last several sessions burst into activity, and was quoted higher by Rs 11.50 on a volume of 528,000 shares, followed by ICI Pakistan, up Rs 5 on 514,000 shares and Fauji Fertiliser, firm one rupee on 485,000 shares. There were several other notable deals also. Trading volume soared to 56.045 million shares from the previous 32 million shares thanks to massive buying in pivotals. There were 277 actives, out of which 183 shares posted good gains, while 47 fell, with 47 remaining pegged at the last close. DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* DAWN FACTS Another first from the DAWN Group of Newspapers --- the people who brought you the first on-line newspaper from Pakistan --- comes DAWN Facts, a new and powerful Fax-on-Demand service, the first service of its kind in Pakistan, giving you access to a range of information and services. Covering all spheres of life, the service arms you with facts to guide you through the maze of life, corporate and private, in Pakistan. With information on the foreign exchange rates, stock market movements, the weather and a complete entertainment guide, DAWN Facts is your one- stop source of information. DAWN Facts is available 24 hours a day, 7 days a week! 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EDITORIALS & FEATURES

960209 ------------------------------------------------------------------- Within the realms of probability ------------------------------------------------------------------- Ardeshir Cowasjee MY friend of the felicitous phrase, Ayaz Amir, wrote in his column, Political power and the judiciary (Dawn, January 29): So inured have we become to scandals and shenanigans that nothing amazes us anymore. Not even such priceless news as the reported offer of Ms Bhutto to make Senator Jehangir Badr the chief justice of Pakistan. No doubt this offer (at a gathering of the party faithful) was made in jest. But then it is a measure of the steep road down which we have travelled that some years ago no Pakistani ruler would have had so complete a lack of culture as to utter a joke in such poor taste. Altaf Gauhar, wrote in his column President Leghari must act now (The Nation, January 26): The public expression of the Prime Ministers desire to appoint a party stalwart from Lahore or a former associate from Kohat as the Chief Justice of the Supreme Court had no purpose other than exposing the highest judicial office to ridicule and contempt. I say otherwise. I say, anything is possible in this day and age, in the awami Islamic Republic. I say, there is a distinct possibility that at some point in time Benazir may seat Badr in the highest judicial chair of the land. Just take one historical precedent. Gaius Seutonius tranquillus, the Roman historian, records in The Twelve Caesars that when the fourth Caesar, Gaius Germanicus (Caligula) ruled Rome he terrified all those who heard him with the remark, Remember that I have the right to do anything to anybody. And he did. To prevent Incitatus, his favourite chariot race horse from growing restive, he picketed the neighbourhood with troops on the day before the races, ordering them to enforce absolute silence. He built a marble stable and an ivory stall for Incitatus, covered him with purple blankets, and made him wear a jewelled collar. Incitatus also owned a house, furniture and slaves to provide suitable entertainment for guests who Caligula invited in his name. Caligula proposed to make him a Consul (one of the two magistrates who exercised conjointly supreme authority in the Roman Republic). A throw of Incitatuss head would signify Yes, and a neigh No. So, what price Badr? Has his future elevation been foretold in the stars? What we must not forget is that like many of our insecure oppressive rulers, Benazir too has to depend upon the sayings of saints and sufis to bolster her ego and give her confidence for her forward planning. She obviously feels that she can no longer solely rely upon the efficacy of PTV and the other government media propagandists. Inevitably, as soon as rulers are enthroned in a democratic dictatorship they automatically assume they will be where they are for the next hundred years, and that thereafter their progeny will follow in their footsteps. The latest seer Lalan Faqir, in the district of Tharparkar, has predicted that Benazir will last in her present position for the next 15 years. Until another dreamer extends it to 25, Lalan, who is given regular joy-rides in our helicopter, will remain Benazirs favourite and we will have to bear the flight and other expenses which will be debited under the head of foundation stone-laying or stopcock-openings in the area. Reliance on seers, sages, and soothsayers is nothing new. Kings, queens, princes, despots, dictators, tyrants have relied upon them since rulers have ruled in this world. The Greeks used them, so did the Romans. According to Seutonius, when, as a quaestor, Gaius Julius, the first Caesar, saw a statue of Alexander the Great in the Temple of Hercules at Cadiz, he was vexed that at an age when Alexander had already conquered the whole world he himself had done nothing in the least epoch- making. He dreamt the following night, much to his dismay, that he had raped his own mother. He consulted his soothsayers who greatly encouraged him by their interpretation of his dream  namely that he was destined to conquer the earth, the universal mother. As Caesar, Julius sent his heir, his great-nephew Augustus, off to Appolonia to study Greek. Just before Julius was assassinated in Rome, Augustus visited the house of Theogenes the astrologer, together with his companion Agrippa. They both wished to consult him about their future careers. They climbed up the stairs to his observatory and Agrippa went in first and was prophesied such incredibly good fortune that Augustus expected a far less encouraging response and felt ashamed to disclose his nativity. Yet when at last, after a good deal of hesitation, he grudgingly provided the information to Theogenes, the astrologer arose and flung himself at his feet. Augustus had such implicit faith in those who could foretell the future that he risked all, had his horoscope published and struck a silver coin (the sole prerogative of the current Caesar) stamped with his birth sign, Capricorn. Luckily for him, Theogenes was right (otherwise Augustus would have been disinherited or worse), news of Caesars murder soon arrived. Soothsayers can get it right. Nero, the sixth of the Caesars, also had his own personal astrologer, Balbillus. After the appearance of a comet in the skies one night, a phenomenon believed to herald the death of an important person, Babillus told him that monarchs usually avoided portents of ill-luck by executing their most prominent subjects and thus diverting the wrath of heaven. After this, nothing could restrain Nero from murdering anyone he pleased, on whatever pretext. Vittelius, the ninth, was promised by a prophetess credited with oracular powers, that he would have a long and secure reign if he outlived his mother. So, when she fell sick, he had her starved to death. What deeds at what cost have ruthless rulers perpetrated throughout the centuries merely to hang on to power. Forward to this century and to this country. Ayub Khan relied heavily on Pir Dewal Sharif, as did many amongst the top army brass of the day. Pir Sahib was renowned for his successful safarish for promotions to the highest rank of various senior army officers. Rangila Raja Agha Mohammed Yahya Khan sensibly sufficed himself with the pleasures life had to offer him. He carried on regardless, enjoying himself to the hilt, until he was done in by circumstance and conspiracy. Zulfikar Ali Bhutto, prior to his elevation to the top, placed his reliance upon the advice and warnings of Mujibur Rahman Chishty. Once in the top slot, there was no room for rivals, he became his own pir and held the monopoly as far as political predictions were concerned. Zia did not advertise his faith in pirs and their likes. His peregrinations were not given the usual publicity. He had full confidence in himself, in his ever faithful Arif, and in his Jadoogar, and thus he survived for eleven years. Benazir, during her first round, visited Bangladesh in October 1989. She travelled to the small remote village of Chor Borkot and spent four hours there with the bearded and portly seer, her fathers old consultant, astrologer-cum-palmist, Mujibur Rahman Chishty. Chishty revealed to her that democracy would prevail in Pakistan but that Benazir should beware of a group bent upon ousting her. Within ten months she was indeed ousted by a group of very determined opponents. Though there were and still are many who think she was ousted by her own party, through their inept corruption and total lack of ability to govern. Nawaz is a great one for pirs, a patron of the occult. His favourites, who guided him through his first spell in prime ministerial office, were the Pir of Mohra Sharif, the Pir of Golra Sharif, Sufi Barkat of Faisalabad, and Dhanaka Baba of Mansehra (now equipped with a special telephone, a helipad and a private metalled road leading to his sanctum), who is allowed the liberty of briskly tapping our first among equals on their fragile shoulders, blows that are supposed to usher in luck and longevity in the power seat. Our bureaucracy is also well equipped with seers and sages, the most famous being Haji Akram, once Nawazs information secretary and Qazi Aleemullah, his financial wizard. The latter is renowned for his ability to phoonk maro, an ability much relied upon by Nawaz, who would never visit Ghulam Ishaq Khan without first being phoonked by Aleemullah. These two worthy servants of the government have been adopted by Benazir, who feels the need to follow the pir pattern set by Nawaz. Haji Akram has become her information secretary and is doing his damnedest to see she stays where she is. Most worrying is the fact that phoonker Aleemullah is the virtual head of our Planning Commission. If it is his ability to ward off evil spirits that is dictating the countrys future economic status, can we have much hope? Now Benazir, too, is a frequent visitor to the Pirs of Mohra and Golra Sharif, of Faisalabad and of Mansehra, all of whom are guiding our destinies. She apparently is also hearing voices and is beset by disturbing dreams, and has consulted both the professional and bureaucratic cliques of soothsayers. Reportedly, none of them dare offer an interpretation. No help being forthcoming, she, like us, will have to rely on time. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960214 ------------------------------------------------------------------- A stranger in the House ------------------------------------------------------------------- By Hafizur Rahman THE time is a few years into the twenty-first century, Pakistan having crossed 2000 A.D. successfully, along with the rest of the world, and without being left behind. Two elderly gentlemen meet in the well of the old National Assembly hall and are pleasantly surprised to see each other, and are very happy too. Being old, and apparently tired, they sit down, one in the seat of the Leader of the House and the other where the Leader of the Opposition used to sit. Nostalgia takes over. Old memories trip over one another as they recall what both remember as the good old days. As it happens with men and women, the ugly scenes in the House, the exchange of invective, the occasional fisticuffs, are glossed over. Only the pleasant incidents: the harmless repartee, the funny walkouts, the rare support for a point made by the other party, the common dinners, the Speakers discomfiture at members behaviour  all these knock at memorys door and are gladly admitted, recounted again and again and laughed at. Time passes like a flash. Before the two know, it is more than an hour that theyve been sitting in what was always the House, and they decide its time for a cup of tea and some refreshment. So they move to the cafeteria. The dear old cafeteria! Here the rush of memories becomes a torrent. One by one they recall and savour the jokes made here, the daily Press briefings by volatile members, the gallons of tea consumed by the journalists. For, as they both say, this was the real place, the National Assembly in its birthday suit. They agree that it was here that members spoke from the heart (on condition of anonymity of course) and where no inhibitions of party discipline or restraint prescribed by religion stood in the way of honest and candid expression. What tickles the two most is that members would make fiery and apparently right-from-the-heart speeches about a very serious matter  though more sanctimonious than sacred  and come out to the cafeteria and laugh uproariously, both at the subject and what they had spoken about it. They held the common view that his was the best and most interesting aspect of life in the National Assembly, and applied equally to members of the ruling party and the opposition without exception. No, I am not foreseeing the future of the National Assembly. I am neither a political astrologer nor a clairvoyant that I should be able to look into the coming days. But, as things stand today,it is quite possible that somewhere around the turn of the century the present National Assembly died a peaceful death, unsung and unmourned. It was probably killed by a chronic lack of work, the immediate cause being a severe attack of quorumitis from which it could not recover. Its last moments were marked by a walkout by the entire House, with the Speaker caught napping. When he woke up with a start, it was all over. Coming back to the present, we were talking, some friends who had gathered for a chat, about the performance of the National Assembly and the individual roles of the Speaker, the Leader of the House and the Leader of the Opposition. One of us who had been a frequent visitor to the House of Commons when in London, said that the number of times in a year that the British Prime Minister was unable to attend the sessions would be the same as the number of times the Pakistan PM and the Opposition Leader had graced the NA with their presence. He also startled us with the information (I must check it though) that every Tuesday it is the PM himself who answers all the questions, including the supplementaries, during the House of Commons question Hour, whether the questions relate to his departments or not. A wag among us (there is always a wag whenever a group sits down to gossip) said he wouldnt be surprised if one day a member with a sense of humour rises in his seat and calls the attention of the Speaker by exclaiming, A stranger in the House, Mr Speaker, a stranger in the House! And then, pointing at either of the two Leaders, he lets go of the witticism that he cant seem to recall having seen the gentleman (or the lady) previously who had so confidently walked into the House and occupied the seat of the Prime Minister/Leader of the Opposition. I commented on this that it would have to be a member of one of the smaller parties, for the PPP and the PML(N) dont joke about their respective bosses. They cant. No one can really say where the daily exercise of pointing out the absence of quorum by an opposition member and the ringing of the bells to muster the number of MNAs necessary for the House to function is going to culminate. But this I do know, as does everybody else probably, that no one is seriously doing anything about it. The Prime minister issues stern directives to her ministers and adherents to take Assembly work seriously (presuming of course that she is serious about it herself). The problem is that there is no one who can issue even a polite reminder to the PM that example is better than precept. That is not the only problem. The political, economic, social and cultural life of the nation is becoming increasingly distanced from the thinking and decisions of the National Assembly. It is as if the members go through a charade without in any way affecting the day-to- day life of the people outside the House. The opening of this piece, describing the demise of the National Assembly, is of course purely imaginary. But is it incredible, impossible, or even highly improbable? There are more than one scenarios that come to mind if the work of the NA comes to a virtual halt because of the members indifference and neglect by the ruling party. None of them is pleasant to visualise. But it cant be absolutely ruled out that some day, someone claiming to have the good of the nation at heart, may do something drastic. Then we can just sit down on the floor and raise our hands in fateha, not only for the dead House. but also for our democracy which died of a broken heart. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960212 ------------------------------------------------------------------- The mystical element in Pakistani politics ------------------------------------------------------------------- By Ayaz Amir HOW does the human mind learn to think objectively? When it frees itself from mysticism and acquires the ability to think deductively. In other words, when its conclusions are based upon certifiable evidence. It is important to emphasise this axiom of elementary logic because many of the pronouncements of the Pakistan Muslim League (PML-N), the principal opposition party and hence the alternative to the PPP government, are shaped by mysticism rather than by anything that even a modest professor of the social sciences would describe as objective thinking. When does an automobile company, Honda or Ford, decide to produce a new model? When it thinks there is a market for it. In a war when does a general go on the offensive? When circumstances are in his favour and he enjoys superiority over the enemy. In the politics of a turbulent and immature country, when does a political party announce a movement or when does it set a deadline for a governments ouster? When conditions are ripe and people are ready to respond to its call. To judge by the tone of the PML-Ns calls  its latest being the declaration, issued in tandem with its allies, that 1996 would be the year of change  it is tempting to conclude that such primary school thinking is beyond its capacity. Are the conditions for forcing mid-term elections better now than they were in 1994 when Mian Nawaz Sharif launched a movement to get rid of the government? If anything, the government is stronger, Benazir Bhutto in the intervening period having tightened her grip on Punjab. The PML-N, on the other hand, is betraying signs of mental exhaustion, a circumstance emphasised by the tired ring of its policy statements. It is also a measure of its physical exhaustion that against the victimisation to which it has been subjected  the cases against the Sharif family, the imprisonment of Shahbaz Sharif, the sentencing of Shaikh Rashid  the PML-N has not been able to mount any credible agitation. Compare this with the intensity of the Awami League campaign against the government of Prime Minister Khaleda Zia in Bangladesh and the relative impotence of the Pakistan opposition comes into sharper focus. >From the foregoing it does not follow that the PML-N, in order to recover from its exhaustion, should don the robes of pacifism. If it feels that its interests are best served by a militant policy, or if it thinks that national circumstances warrant an aggressive posture, it is entitled to say and do what it likes as long as its actions are within the law. But if at all it has a concern for its credibility, its declarations must be related to performance. We all know what became of the boy who always cried wolf. Since being thrust into the wilderness of opposition in 1993 the PML-N has cried wolf so often that it faces a serious crisis of credibility. When it hurls a threat these days how seriously is it taken by its own workers let alone the government? Movements in any case are not born out of thin air. A leadership must have the gift of analysis which should help it decide whether conditions are ripe for a particular course of action. When circumstances are not favourable leaders worthy of the name build up their strength and bide their time. Revolutionaries, who if anything, are more impatient than parliamentary politicians, do the same: wait for the right moment to strike. The PML-N, on the other hand, seems to be made up of the most impatient collection of politicos in the subcontinent. Scorning introspection or analysis, they can be found repeating the mantra that Benazir Bhuttos continuation in power is fatal for the country and therefore it is of the utmost national importance to get rid of her. But how precisely this supreme imperative is to be met elicits a gabble of mystical responses. Benazir Bhutto may be presiding over a government more distinguished for its ineptitude and the aura of corruption surrounding it than anything else. But that is hardly the point. The question that needs asking is: is the government firmly in place or is the opposition capable of forcing its hand? About the governments grip on the present situation there should scarcely be any doubt. Inflation may be high and there may be no end in sight to the problems of Karachi but the blitheness and even arrogance with which Benazir Bhutto is exercising power almost lend themselves to the impression as if she has no opposition to contend with. Two years ago when there was an opposition government in the Frontier and a difficult chief minister in Punjab she may have appeared vulnerable but not today when she is riding roughshod over everything. As for the PML-Ns ability to launch a movement, we know from the experience of the last two years that its bark has been worse than its bite. It is true that wherever Mian Nawaz Sharif goes he pulls in the crowds. It is equally true, however, that in a democracy popularity can be transmuted into the coinage of power only at election time. And when that is going to be is something, alas, that only Benazir Bhutto can decide. Nawaz Sharifs votes in Punjab probably exceed Ms Bhuttos. His supporters will happily vote for him and his anointed candidates when the time comes. But they will not be cannon fodder for any movement that he may call. This is the reality that the PML-N leadership, both of the first rank and the second, is having a hard time accepting. It is also worth remembering that the two great movements in our history  in 1968 against Ayub Khan and in 1977 against Zulfikar Ali Bhutto  were almost spontaneous expressions of discontent. There was no visible build-up to either of these upheavals. One moment the sky was clear; the next all hell had broken loose. The PML-N, however, by setting deadlines for the governments ouster is trying to stir the elements. In this endeavour its success is proving to be no greater than that of the eight-party opposition alliance, the MRD, whose greatest accomplishment during its existence was the passing of stern resolutions against the Zia regime. When the 1988 elections came round (with no little help from the heavens because if General Zia had not met his Maker, the holding of those elections would have become problematic) Ms Bhutto became prime minister. But it took an election for her to come to power just as it will take either another election or divine help (which on current evidence does not seem to be forthcoming) for Nawaz Sharif to again look for his place in the sun. There is another point worth bearing in mind. The suffocating nature of the Ayub and Bhutto regimes played no small part in creating a groundswell of opposition against them. By 1968 the intelligentsia and the middle classes, surfeited with the regimes propaganda, wanted a change. By 1977 Bhutto had managed to instil a hatred almost pathological in character in the minds of his opponents. They were prepared to go to any lengths to get rid of him. By contrast, much as PML-N partisans would dispute this statement, Benazir Bhutto inspires anything but hatred at a mass level. Ridicule and amusement, yes; at times astonishment at the contortions that she can go through. But not the pathological hatred that her father was such a past master at evoking. The very blandness of this government, the fact that the greatest charge against it (the perennial exception of Karachi apart) is not the torture of political opponents but the taking of commissions, is a point in its favour because the passion necessary for a political movement to succeed is not stirred by weak emotions. The catharsis of democracy is also helping this government. The Press is free to write; the opposition free to say what it wants. What if the exercise of this freedom has not the slightest effect on the governments actions? At least it allows the massed ranks of the disgruntled to get things off their chest which, as any quarrelling couple will vouchsafe, is a great dissipater of strong feelings. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- Defining Mohajir grievances ------------------------------------------------------------------- Kaiser Bengali THE year 1995 claimed 2,095 lives on account of the continuing violence in Karachi. And the year 1996 commenced with over two dozen deaths in the bombing of a bus on Shahra-e-Faisal, marking yet another escalation in the battle zone that Karachi has become. The interior minister, a general, continues to make bombastic statements reminiscent of the wild claims of Generals Tikka Khan and Niazi only about a quarter of a century ago. They could retire to lick their wounds in the luxury of their homes unaffected by the ravages of war. But East Pakistan was a thousand miles away. Karachi is just down the road. The boom of guns in Karachi will reverberate through calm and serene Islamabad as well. The cycle of violence by the terrorists and counter-violence by the states law enforcement agencies has already drenched Karachi in blood and gore and disrupted the port citys economy, with equally serious ramifications for the national economy. The depth of alienation of the Mohajirs is fast reaching a point where hostile foreign interests are beginning to be drawn in and the break- up of the country is not likely to remain a remote possibility. The turmoil in urban Sindh can be correlated with the rise of the MQM. And the rise of the MQM signifies the search for a political identity for a section of the people of Sindh now identifying themselves as Mohajirs. It is a search which has, most unfortunately, been accompanied by violence and bloodshed. It has become a saga of terrorism perpetrated by those without uniforms as well as by those in uniform. The victims in either case are the people of Karachi. All along there have been charges and counter-charges. Prime Minister Benazir Bhutto has rightly described the situation in Karachi as a mini-insurgency, but political measures to counter the insurgency are conspicuous by their absence. Parliament has deliberated on the issue umpteen times, but the occasions have been used by members to score points rather than to dispassionately analyse the problem and suggest remedies. Ironically, however, the MQM itself has over the last decade completely failed to articulate Mohajir grievances or formulate a cogent set of demands. This is evident from the randomly shifting kaleidoscope of MQM rhetoric and demands. There is little in common between the set of demands presented by the MQM to the PPP in 1988, to the IJI in 1990 and again to the PPP at various rounds of negotiations since 1993. There is also a tendency on the part of the MQM to obfuscate their own initial demands by subsequently adding a host of peripheral issues. However, enough is enough. Mohajir interests cannot be served by breast-beating alone. It is now imperative to define Mohajir grievances and to put forth the minimum set of demands. The Mohajirs began to emerge as a political force in the mid- seventies with the formation of the All Pakistan Mohajir Students Organisation and entered the national stage in 1985 with the formation of the Mohajir Qaumi Movement about a decade later in 1985. Over the decade since, the MQMs fortunes have ebbed and flowed. There is one constant, however. In all the elections since 1985, it has proved itself to be the overwhelming voice of the Mohajirs and remains so even today. It may be necessary to step back and dwell briefly on the question of the issue of the term Mohajir for the purpose of political identification. There are a host of factors determining the formation of an identity. One of them is shared grievances or sense of deprivation or persecution, which sets in motion a search for a common platform from which shared grievances can be aired. In the thirties and forties, religion provided the common platform for subcontinental Muslims of diverse ethnicity, language and culture to unite for articulating their demands. In the late sixties, language provided the common platform for the Bengalis of erstwhile East Pakistan. In post One-Unit Pakistan, close to 10 million residents of Sindh, largely concentrated in Karachi and other urban centres of the province, found that they had on hand a crisis of political identity. They were residents of Sindh but were not Sindhi. They were variously called Urdu-speaking, New Sindhis, etc. They also felt that their political and economic privileges had been consistently eroded over time. The search for a common platform began. Religion or language could not serve as a rallying point as they did not provide the exclusivity necessary for identity formation. Territorial identification was also ruled out, given that they were scattered across the province. Common ground was found in the fact that they or their parents or grand-parents had migrated from various parts of India as a by-product of partition of the subcontinent and creation of Pakistan. Given the environment of an identity vacuum, this common heritage rapidly acquired the status of a common denominator for the emergence of a political identity. The term Mohajir thus represents a political identity arising out of a historical process over the last half a century. Mohajir political identity is now a reality and needs to be accepted as such by Sindhis as well as people of other provinces. Mohajir grievances are rooted in economic and political factors. In this context, three major grievances can be identified. These are (1) unemployment, (2) lack of control over local resources and (3) virtually complete absence of effective participation in provincial and national political decision making. (1) Unemployment: Unemployment is the number one economic problem of the people of Pakistan. If underemployment is taken into account as well, close to about one-fifth of the countrys labour force can be classified as unemployed. Unemployment levels are relatively higher in Balochistan, the NWFP and rural Sindh. Even in Karachi, unemployment among the Baloch of Lyari is twice as high as among the Mohajirs. Yet unemployment has failed to emerge at the top of the national political agenda, but has become the major factor in Mohajir insurgency. The answer to this conundrum may be found in the structure of Mohajir society. Unlike Sindhis, Balochs, Pukhtoons or Punjabis, Mohajirs are totally urban with no rural links. It is a measure of their urbanity that the level of Mohajir literacy and education is higher than in the rest of the country. In the Orangi slum area, for example, there are over 600 private neighbourhood schools and the literacy rate is said to be around 90 per cent. The educated unemployed have been known to be more politically volatile the world over. More significantly, Mohajir society is characterised largely by nuclear families while the traditional joint family system is largely prevalent in the rest of the country. A joint family system permits the sharing of consumable resources even by those who are unemployed. In a nuclear family, the unemployment of the bread earner leads to a situation of abject desperation. And if there are young educated sons in the family who are unable to provide for day-to-day needs in support of their aging parents or for the marriage of their sister or sisters, it is considered a matter of personal failure and shame. The unemployment of the educated Mohajir youth is the single largest factor in the unrest in urban Sindh. (2) Control over local resources: The unemployment and economic deprivation would have been palatable if the country or the region dominated by Mohajirs was resource poor. The facts are to the contrary. Karachi is the economic engine of the country, contributing about 20 per cent of national gross domestic product, 40 per cent of federal tax revenues and 80 per cent of provincial tax revenues. Mohajirs have little say in how and in whose interest these revenues will be spent. There are other lucrative sources of under-the-counter income for those in charge of the city. There are four major sectors  land, water, transport and police  which generate millions of rupees in illegal gratification. A sample survey in the Saddar area of Karachi showed that hawkers pay about Rs 300,000 per day in bribes to the various authorities. The total catch from land, water, construction, transport, drugs, prostitution rackets etc. is estimated to exceed Rs 3 billion per year. Those in charge are generally non- Mohajir, while the millions are generated largely from Mohajir pockets. The Mohajirs are no longer prepared to tolerate the institutionalised corruption which has torn the social fabric of Karachi. They are no longer prepared to accept the position of the docile goose that lays the golden egg for those in power at national and provincial levels. And they are no longer averse to challenging the overt and covert transfers of income at their expense. (3) Political participation: In a larger context, the most important factor in Mohajir insurgency is the sense of political redundancy. Given the constitutional and electoral system in the country, the Mohajir electorate is in a position to command a maximum of 8 per cent of National Assembly seats. In a situation where a virtual two-party system has emerged, smaller parties have lost the leverage they could have commanded in a hung parliament. Effectively, parliamentarians belonging to smaller parties, like the MQM, can only make eloquent speeches. The Mohajirs position in the provincial assembly is even more redundant. With only 28 per cent of seats, they are not even in a position to withhold quorum. The MQM has mostly boycotted the present assembly sessions, but that has not prevented the assembly from conducting its sessions and passing legislation. If the MQM does decide to attend the assembly sessions, the best they can do is to make eloquent speeches. The Mohajirs are not even able to exercise their writ in the cities where they dwell. Ironically, even the holding of local bodies elections will not enable the urban population to exercise effective control over their local affairs. This is because the only function over which city mayors have exclusive jurisdiction is sanitation. All other functions are either wholly or partially under the control of provincial or federal governments. In Karachi, the mayor is the chairman of the Karachi Water and Sewerage Board (KWSB), but the managing-director is appointed and can be removed by the provincial government. Land is controlled by the Karachi Development Authority (KDA), a provincial government organisation. However, large tracts of land in Karachi are under the jurisdiction of cantonments, railways, etc., and, as such,federally controlled. Transport and police are provincial subjects and electricity, gas and telephones are federally administered. It is clear that the Mohajirs are not in a position to exercise any leverage at either the federal, provincial or local level. Given this state of political redundancy, the Mohajirs feel they do not have any stake in the system. The crux of the problem is that the country is facing a constitutional crisis. The 1973 Constitution was framed in the aftermath of the rupture of Islamabad-Dhaka relations and the seccession of East Pakistan. Considerable attention was, therefore, accorded to Centre- province and inter-provincial relations. The Constitution provided for a federal list, a concurrent list, a National Finance Commission, etc., and the then government also created a ministry of provincial co-ordination. However, it was then assumed, perhaps rightly so at the time, that the provinces were internally politically homogeneous. Provisions for intra-provincial relations are, therefore, conspicuously missing from the Constitution. Two decades down the road, more than half of which was spent under the trauma of military rule, the assumption is no longer valid. Sindh has two clearly defined political entities: Sindhis and Mohajirs. Incidentally, other provinces are in the same boat. Punjab is beset with the Seraiki identity and the nascent Potohari identity; the NWFP has to reckon with the Hazarwal identity; and Balochistan has to deal with the Baloch-Pukhtoon divide. The Mohajirs have put their case up front, albeit without grace. Others will not be far behind. And if the brutal state response in Karachi has any lessons to offer, others may show even less grace whenever they decide to take up the cudgels on behalf of their cause. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960211 ------------------------------------------------------------------- The World Cup ------------------------------------------------------------------- By Omar Kureishi THE World Cup is a festival of cricket, an occasion of joy or put less exuberantly, a respite from the despair and tensions of our daily lives. In more parochial terms, it is the chance to make us feel like Pakistanis, even if fleetingly for the few weeks that the tournament lasts. To a man, woman and child, we will cheer our team irrespective of differences that are based on narrower allegiances and all sorrows will be forgotten and all grievances will be put on hold. The World Cup will demonstrate that national unity is not a slogan. Imagine what will happen should Pakistan win the World Cup, there will be an explosion of happiness from the Khyber to Karachi. And imagine if Pakistan should not win. A disappointment more akin to mourning will descend on every household. Both joy and anguish are a part of caring for your country. There is a down side to the World Cup as well. International sport has become a substitute for war. What is supposed to be healthy competition has become an ugly national confrontation and rather than generating goodwill there is an upsurge of jingoism that one associates with battle. Each international sports tournament carries the seed of conflict and countries have actually gone to war over the result of a football match. After all, we must not forget that we came close to breaking off diplomatic relations with Argentina when we felt that the referee from that country had played foul in Pakistans hockey defeat in the Munich Olympic Games in 1972. A lot of controversy has been kicked up by the Australians who say that their players have been receiving hate-mail from Sri Lankans and Australia, at one stage, thought that that was enough to pull out from the World Cup. The Colombo bomb blast is something else and has nothing to do with cricket. It is not the players who are infected with this national passion, though they compete fiercely, but the supporters of national teams. Football hooliganism has more or less been accepted and one budgets for some broken skulls but Monica Seles was stabbed by a Steffi Graf fan and tennis is supposed to be a gentle game. Hooliganism is creeping into cricket as well, particularly the one-day game. Those of us who were at Edgbaston in 1987 for the one-day international are not likely to forget the riot that erupted and one Pakistani fan all but had his throat slit. The riot was started by National Front supporters, admittedly a lunatic-fringe organisation but the foremost passion that day at Edgbaston was Paki-bashing. As someone who has been covering cricket for over forty years, I have seen the intrusion of the values of tabloid journalism in cricket coverage. I covered Pakistans tour of England in 1992 and the English journalists who sat in the press-box saw themselves as war- correspondents. It was a shameful performance but the most unfortunate aspect was that these journalists felt no shame. They fabricated stories, sought sensationalism and thought nothing of slandering not only the Pakistan team but Pakistan itself. One can only hope the coverage of the World Cup will be more restrained and the hospitality of the host countries will not be abused. Both the hosts and the guests have certain obligations. They must respect each other. One does not expect the media to behave like yobs. But international sports events, and this includes the World Cup, have been taken over by commercial entrepreneurs and we are talking about big money. The first World Cup in 1975 was mainly about cricket. The 1996 World Cup is only incidentally about cricket. It is about marketing and if it was at all possible one has no doubt that even the air we breathe would have been sponsored. I have no real quarrel with this because the World Cup is a great commercial opportunity and we live in a world where market forces are held to be sacrosanct and if big bucks are there to be made, they will be made. After the opening of Scottish commercial television, Lord Thompson of Fleet described it as just like having a licence to print your own money. One gets the impression that the World Cup is being seen in the same light. What we have is a classical monopoly situation. What becomes the determining force is maximum profitability and not the public good. I hope that the general public will not be forgotten at match centres and they will be provided basic facilities, at least. By basic facilities I mean access to drinking water which may seem elementary but which was in very short supply when the Sri Lankans toured Pakistan. I know from personal experience that at Rawalpindi it was difficult to get a glass of water even in the television commentary box. I know that a lot more money is to be made from hiring out corporate boxes but the game of cricket is sustained by those who will not be watching from these boxes. The general expectation is that a lot of people will prefer to watch the matches on television and spectators, from a revenue point of view, are increasingly getting irrelevant. But thousands will still want to go to the ground to absorb the atmosphere which is not available if one watches on television and they will want to be a part of the proceedings. Any actor knows what it is like to perform before a live audience. It is the interaction between the players and the public that makes a great cricket match. This public must be treated right and not taken for granted. Not ripped-of. There is one final point and that is the security aspect. No one in his right mind will suggest that there should be any relaxation in this area. We must remain vigilant and ensure that vested-interests do not cause us any embarrassment. The security should be done but not seen to be done. Sometimes it happens that the cricket public is harassed in the name of security. We must never lose sight of the fact that people go to a cricket match to enjoy themselves. It is a fun occasion. We must do everything humanly possible to allow this public to have fun. There will always be trouble-makers but these are in a tiny minority. Good security can flush them out. There is no need to be heavy-handed with the majority of the public. And most of all exuberance should not be mistaken for hooliganism. But the responsibility also lies with the public. Discipline and enjoyment are not mutually exclusive. The eyes of the world will be on Pakistan. It is a wonderful opportunity to show the best face of our country. It should be a happy face. The television audience will be in the region of one billion. We should send out a message to this audience that not only do we enjoy our cricket but allow others to do the same. But the main business of the World Cup is cricket, not business. And while we want the Pakistan team to win, it wont be the end of the world if it doesnt. Thats called hedging ones bet. But Pakistan as a country can win. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960215 ------------------------------------------------------------------- The road to economic recovery ------------------------------------------------------------------- Sultan Ahmed THE official macro-economic management has received a clean bill of health from the IMF mission which studied the new fiscal and monetary trends in the country. The IMF is confident that if there are laxities or deviations from the course prescribed by it the government will fall in line fully by June and accomplish all the targets underscored by the IMF board on December 13 following bilateral negotiations in November. The government has earned the kudos from the IMF by coming up with a mini-budget prior to the new negotiations on October 28 to correct the deviations of the June 14 budget which did not levy enough taxes as the IMF had demanded to sustain the now scraped 1.5 billion dollar Enhanced Structural Enhancement Facility for three years. But the IMF has provided only 80 million dollars as the second tranche of 600 million dollars standby arrangement, and not the 200 million dollars indicated earlier, or 145 million dollars reported later. But the IMF could argue that since Pakistan had obtained more funds as external aid or through borrowing abroad it did not need the 200 million dollars immediately. Or was the reduction in the second tranche designed to make the government conform to the stiff IMF targets and financial restraints and not go on a fiscal or monetary wild goose chase again? Surely the government has bound itself to do a great deal and achieve many tough targets within the next five months. If it has to achieve all that, it will have to abandon many of its profligate ways, slash non-productive and administrative expenditures a great deal, even if it need not cut the defence expenditure as the IMF now wants to only contain that in view of the military tensions in the region. But can the economy be so well managed within the next few months that inflation comes down from 15 per cent to nine per cent by June, which is the target of the current budget as well? If it can, unlike last year when instead of the promised seven per cent inflation we got double that figure, nothing can be better. But that surely needs far more than tight monetary control, severe checks on credit, which is one of the major tools for fighting inflation in our midst, and not the only tool, and poor interest rates. Right now, immediately after the IMF forecast of remarkable improvements in the balance of payments and foreign exchange reserves soon the trade figures for the first seven months of the current financial year ending January 31 are utterly upsetting. Exports for the first seven months of this financial year ending January show a fall of 4.3 per cent instead of the targeted rise of 14 per cent  after last years 17.9 per cent increase  which has resulted in a trade deficit of 2.25 billion dollars. And that is more than the deficit of 2 billion dollars anticipated for the whole year and twice the deficit of 1.09 billion dollars incurred in the same period last year. Making the deficit so large was also the rise in imports by 18 per cent instead of the targeted 10.6 per cent rise. There is no report of a substantial rise in home remittances, which last year rose by 29 per cent, to offset its impact. Hence the balance of payments deficit which was budgeted to rise to 4.1 per cent of the GDP in the current year, from 3.5 per cent last year, may exceed that figure substantially unless effective and adequate remedial measures are taken in the next few months. What these figures show is that the standard cure of the IMF to combat falling exports and rising imports, which is substantial devaluation or realistic pricing of the rupee, does not work in Pakistan. If three months after the devaluation of the rupee by 7 per cent, or an overall ten per cent since the June budget, exports have fallen instead of rising substantially and imports have risen by 18 per cent, devaluation is not the right or sole cure for the rising external trade deficit but is a kind of ultimate remedy that has failed in Pakistan, as it did in 1993-94 as well when a 10 per cent devaluation was resorted by Nawaz Sharif and Moeen Qureshi governments as avowedly a one- time cure. Hence the IMF delegation leader Mohammad El-Erain says there is no need for further devaluation of the rupee now even if the exchange rate of the Indian rupee is lower. There is a notable discrepancy in the statements of the IMF and Pakistan in regard to the use of the sale proceeds of the privatisation. While the IMF maintains the government has committed itself to use the sale proceeds to reduce the soaring national debt, chairman of the Privatisation Commission Naveed Qamar says the government will use those funds for debt relief after June. The question which instantly arises is what would the government do with the vast funds from the sale of UBL, 26 per cent of the shares of PTC, Bankers Equity etc., and why cant the government at the level of the Prime Minister make a categorical statement that all the funds right now would be used for debt reduction. If that is done, the debt will come down substantially and the provision for debt servicing in the new budget will be far below the Rs 157 billion provided for in the current budget. And that will reduce the need to borrow unlimited funds, help lower taxation and devote more funds to the grossly starved human development. But the fundamental issue in which the people as a whole are interested is whether the IMF projection of inflation coming down from 15 per cent to nine per cent by June will really materialise? Last year inflation was double the budgeted figure of 7 per cent. And this year the budget projection too is 9 per cent. But while the IMF talks of a 15 per cent inflation now, the Federal Bureau of Statistics speaks of an 11.06 per cent rise in the Consumer Price Index which shows the gross inadequacy of that index at a time when the cold market reality is far different. But the IMF cure for lowering inflation is primarily through reducing the money supply and curtailing bank credit by restricting the volume and making it more costly which has given us the highest interest ever we had. But if at a time of rising cost of investment, production and sales such credit crunch leads to a downturn in industrial production and exports that will be a self-defeating exercise. The IME is, however, hopeful that the economic growth this year would be 5.5 to 6 per cent unlike last years 4.7 per cent. And yet the new target is quite below the budget projection of 6.5 per cent, and based primarily on the good cotton crop and expected excellent wheat output because of the winter rains. The IMF talks of good progress in the manufacturing sector too but ground level reality does not endorse that. Whatever the ultimate reality, promoting and sustaining a high rate of economic growth, and not merely setting growth targets of 6.5 to 7 per cent and then let go, should have the top most priority for the government. That alone is how we can increase the national and per capita incomes, increase employment and exports and expand the revenues on a durable basis instead of tactics like employing video cameras to trap buyers in shopping plazas who evade taxes. We are told the government is now considering a comprehensive overhaul of the economy to eliminate chronic distortions afflicting it and make it more responsive to the emerging challenges in the global markets. A comprehensive working paper on the subject came for discussion for two hours after the meeting of the Economic Committee of the Cabinet on January 29, and that paper seeks greater emphasis on increasing foreign investment, local investment, productivity, broadening the tax base, saving the income tax payers from corrupt officials, and bringing the black money into the white economy. It also wants a new taxation system, which while not reducing the overall revenues would make the burden on the masses equitable and largely acceptable to them. Not that such papers have been missing in the past. What matters is what those who call the economic tunes want and how much of that they are ready to implement in a system based excessively on privilege, prerogatives and protection for the powerful. We have a taxation system in which those who do not pay taxes feel very safe and altogether privileged, while those who pay are harassed and not recompensed. Can all that change now in the face of the fierce fight by the feudal lords to preserve their fortresses of privilege, tax exemption and freedom from many of the laws of the land in practice. Even an institution like the Asian Development Bank underscores the need for good governance, in the manner the World Bank too has done, to make its programme effective. Good governance it says includes accountability, real popular participation (and not the ritual of occasional or even periodic elections) predictability and transparency. In all these areas the system in Pakistan has been failing woefully. The whole ADB package hangs together. Without transparency there cannot be accountability and without predictability, particularly in the economic and political sectors, there cannot be stability and steady progress. But instead of predictability what we have is ad-hocism or one-step forward and two- steps backward shuffle, and vast chasms between policies and practices, between policies and bureaucratic procedures and the ham- handedness of the Central Board of Revenue and the ubiquitous FIA. Now if things go wrong economically the government can readily blame the World Bank, IMF and the Asian Development Bank for it, although most of the time we drive ourselves into the kind of situations where their aid and dictates become imperative. Clearly the cures for the economy are obvious, and they are not economic alone. Good governance is a comprehensive regimen, and that has to begin with good, clean and transparent politics, and the politics of consensus and not conflicts.


SPORTS

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DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960210 ------------------------------------------------------------------- The fascinating saga of World Cup ------------------------------------------------------------------- Qamar Ahmed LONDON: Since the first one-day international was played at Melbourne in 1970-71 as a replacement for a rained-off Test, the game has evolved into a marketable industry. It cheered the crowd, provided entertainment and most of all at the end of the day there was also a winner. The crowd loved it and so did the players who enjoyed themselves and found some kind of relaxation in the instance brand of cricket. Now 25 years on, one-day matches have become a money-spinning affair and the finance it generates has helped to keep the game alive and it certainly has enhanced he standard of fielding and the standard of living of most the players who over the years have made it into their national teams. Because of its popularity and the income that it provides, the respective boards of the cricket playing nations can now afford to provide a lot better facilities for their players and official and for the ones who aim to the reach to the top. Advertising and marketing industries are thriving because of it and the electronic media with the advent of satellite television are having a field day. It is no wonder then that the last five World Cups made such an impact on the cricket loving public and the advertisers alike. The sixth World Cup starting from February 14 has already accumulated millions in finances even before it has started. The rough estimate is that the organisers of this sub-continents second extravaganza will net over 35 million pounds in TV deals and sponsorship rights, the spoils of which will be mostly shared by Pakistan and Indian cricket boards. Prudential, an insurance company was the first to get on to the bandwagon to sponsor the first three World Cups played in England in 1975, 79 and 83. The fourth World Cup played in the sub-continent in 1987 also had a sponsorship from an insurance company. The Reliance World Cup as it was named. In 1992, it was the tobacco company Benson & Hedges in Australia and New Zealand who pumped in the money as are the Indian Tobacco Company for the present Wills World Cup. From pound 100,000 sponsorship in the first World Cup, it has now grown into a multi-million affair which could be judged from the fact that the winner of the Wills Cup in 1996 will walk away with pound 30,000 and the beaten finalist will have a purse of pound 20,000. In the first World Cup in 1975, Sri Lanka and East Africa were the other two countries along with England, Australia, India, Pakistan, New Zealand and West Indies. Despite injuries to their two batsmen, the Sri Lankans deserved a lot of credit for scoring 276 for 4 against Australia at The Oval against Dennis Lillee and Jeff Thomson but Pakistan and West Indies in the same group outplayed them. The East Africans lost their three group matches by huge margins but none as embarrassing as was the defeat of India by England in the opening game. In reply to Englands 334 for 4 in 60 overs with Denis Amiss making 137, India could manage only 132 for 3 in 60 overs. Sunil Gavaskar batted all through the 60 overs for a humiliating unbeaten 36. The toughest match was between Pakistan and the West Indies at Edgbaston. After Pakistan had made 266 with the help of fifties from Majid Khan, Mushtaq Mohammad and Wasim Raja, The West Indians were faced with defeat with 64 runs required in 14 overs with Deryck Murray and Roberts, the only men left. With five remaining 23 were still required and Sarfraz Nawaz had finished his 12 overs taking 4 for 44. In the last over five runs were needed which West Indies managed to the disappointment of Pakistan supporters. And it was West Indies by virtue of that incredible victory who played in the final against Australia at Lords in front of 26,000 capacity crowd. Gordon Greenidge and Alvin Kallicharan were out cheaply and so was Roy Fredericks who while hooking Lillee for six tripped on to his wicket. But Rohan Kanhai made 55 and the captain Clive Lloyd hit a hundred (102) in only 82 deliveries with 12 fours and two sixes to destroy the Australians. A stand of 56 between Ian Chappell and Aland Turner was broken by a run out, one of five in the match, three of them by the then young Viv Richards. Even a 41 runs stand between Lillee and Thomson could not help. From 9 balls 18 runs were still required when Thomson was run out for 21 and the West Indians walked away with the Cup. In the second World Cup in 1979 for the first time the umpires were asked to penalise negative bowling. After the inaugural ICC Trophy which was competed by 15 teams in England, both Sri Lanka and Canada qualified by beating Denmark and Bermuda. England and New Zealand once again qualified for the semi-finals and this time they meet each other which England won by 9 runs at Old Trafford. Graham Gooch scored 71 and for New Zealand John Wright made 89. Once again the best match of the tournament was at The Oval between West Indies and Pakistan. An opening stand of 132 between Gordon Greenidge and Desmond Haynes helped West Indies make 293 for 6. Pakistan with Majid Khan and Zaheer Abbas in flow sharing 166 in 36 overs were well in control before Colin Croft struck and got them both as West Indies won by 43 runs. Zaheers 93 was classic and Majid with 81 was magnificent. In the final at Lords Viv Richards made 138 and Collis King 86 with ten fours and three sixes to enable West Indies make 286 for 9. A 129 runs opening stand by Mike Brearely and Geoff Boycott at slow pace was not enough as Joel Garner with 5 for 38 assured the Cup for West Indies again. India who had beaten West Indies in an earlier group match walked away with the 1983 World Cup beating the West Indies in the final at Lords by 43 runs. Zimbabwe had a shock 13 runs win over Australia. Sri Lanka also won their first ever match in World Cup by beating Pakistan by 11 runs. England was the most impressive of teams by winning five of their six 55 over games from group matches doubled in number with each side playing the others twice. Through an incredible innings of unbeaten 175 by the Indian captain Kapil Dev, India had qualified for the semi-final. Against Zimbabwe at Tunbridge Wells in Kent India were reduced to 17 for 5 when Kapil walked in to hit 16 fours and 6 sixes to leave India 266 to defend. They beat Australia by 118 runs and England by four wickets at Old Trafford. In the final although they were restricted to 183 as Andy Roberts, Malcolm Marshall and Michael Holding hurled their thuderbolts, they bowled West Indies out for 140 to lift the Cup. Their win helped them to popularise the limited over game in the sub- continent and with Pakistan they made a successful bid for the 1987 World Cup, backed by their sponsors. On 21 venues 27 matches were played in Pakistan and India and overs were reduced to 50. Australia had one run win over India the championships. Despite a hundred by Javed Miandad, Pakistan beat Sri Lanka by only 15 runs. Zimbabwe came within three runs of beating New Zealand through entertaining 141 by David Houghton and England beat West Indies by two wickets, needing 91 runs in the last ten overs. India and Australia finished on top of group A while Pakistan one of the favourites also ended at the top of their group. In Lahore however Pakistan were gored by Australia in the semi-final by 18 runs. Australias 267 for 8 proved a bit too much for the asking. At Bombay England we helped by Graham Gooch who made 115 out of 254 for 6 of Englands total against India. Mohammad Azharuddins 64 was not enough for India to reach the final. India and Pakistan stayed out with their dreams shattered. An estimated crowd of 70,000 at Eden Garden saw Australia win the Cup against England. Australia with David Boon making 75 and Mike Valletta and unbeaten 45 reached 253 for 5. England at 135 for 2 after 31 overs were well on their way when a reverse sweep by Mike Gatting changed the complexion of the game. In the end England could manage 246 for 8, Bill Athey made 58, Alan Lamb 45 and Mike Gatting 41. Pakistans World Cup campaign in 1992 was started with heartaches and disappointments as it began to lose matches. West Indies beat them by 10 wickets in the first match. Rain saved them from defeat against England at Adelaide after they were shot out for only 74. A defeat by India and South Africa was nothing to cheer about and a win against Zimbabwe virtually meant nothing. But suddenly they started to emerge when wins against Australia and Sri Lanka and successive victories against New Zealand enabled them to reach the first final. England, their opponents had all the confidence but they were beaten by Pakistan by 22 runs at the MCG as Pakistan for the first time won the Cup. The heroes of that World Cup for Pakistan were Javed Miandad, Imran Khan, Inzamam-ul-Haq, Wasim Akram and Mushtaq Ahmed and Ramiz Raja. Being the champions, Pakistan would be under immense pressure in the next few days. Like the rest they will have sleepless nights but hoping that bright prospects await them. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960212 ------------------------------------------------------------------- World Cup gets under way with hi-tech glitz ------------------------------------------------------------------- CALCUTTA, Feb 11: Crickets most controversial World Cup opened here with a display of fireworks which matched the mood of the organisers after a failed bid to convince Australia and the West Indies to play in Sri Lanka. Some 110,000 spectators at the floodlit Eden Gardens sat spellbound through a spectacular 75-minute opening ceremony that blended hi-tech laser shows with traditional Indian dance and music. Conceived by Italian showman Gianfranco Lunetta, who put on similar shows at the soccer World Cup in 1990 and the Barcelona Olympics in 1992, the inaugural carnival was watched by an estimated two billion people around the world. The ceremony began just four hours after organisers emerged from a protracted crisis meeting to announce that they had failed to persuade Australia and the West Indies to play in Colombo. The meeting, chaired by International Cricket Council (ICC) chairman Clyde Walcott and attended by officials from all the 12 participating nations, lasted almost 15 hours but failed to come up with a solution. But the organisers announced that crickets premier event will go ahead as planned and Sri Lanka will be awarded unprecedented walkover wins for the matches if Australia and the West Indies fail to show up in Colombo. The opening ceremony began on schedule at 6:00 pm (1230 GMT) with the entry of all the 12 participating teams in the stadium in alphabetical order, led by Mark Taylors Australians. The Pakistanis, seen on Indian soil for the first time in seven years, received warm applause. But the biggest cheers were reserved for Kenya, making their World Cup debut, and hosts India. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960211 ------------------------------------------------------------------- Pakistani cricketers in India after 7 years ------------------------------------------------------------------- CALCUTTA, Feb 10: Pakistani cricketers stepped on Indian soil for the first time in seven years, hoping to make up for lost time by winning both friends as well as the World Cup. Wicket-keeper Rashid Latif said he hoped to also use the teams brief trip to Calcutta for Sundays opening ceremony to trace his elder brother Shahid, whom he has not seen for 22 years. Please give me the telephone number of the Statesman (newspaper), Latif asked an official as soon as the Pakistanis landed at the Calcutta airport amid tight security. My brother works there. Latif was not in the Pakistani team which won the Nehru Cup tournament in Calcutta on their last visit to India in 1989. Since then, Pakistan have twice cancelled scheduled tours to India citing security fears. Skipper Wasim Akram, who was beseiged by autograph hunters at the airport terminal, said he was delighted to come to India. I have many friends here, so India is like home to me. I am happy to be here because we always look forward to coming to India, the ace all-rounder said. Akram was confident about Pakistans chances of defending the World Cup, which they won in Australia in 1992 under Imran Khans captaincy. Believe me, we are going to win the World Cup again. The boys are relaxed and that is a good sign, he said. Pakistan will return home after the opening ceremony for the preliminary league in which they are grouped with England, South Africa, New Zealand, United Arab Emirates and Holland. Pakistan may have to return to India for the quarter-final if they finish second or third in their group. A first or fourth position will keep them at home. Both semi-finals will be played in India. Lahore, in Pakistan, is the venue for the March 17 final. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- Bal Thackerays lurking ghost buried ------------------------------------------------------------------- ISLAMABAD, Feb 12 (APP) : Pakistani cricketers, with one stroke, have ruthlessly cut the fanatic Bal Thackeray as well as blatantly fussy Aussies to the quick. For almost four years, Bal Thackeray had been vowing never to allow Pakistani cricketers to set foot on Indian soil. But the Pakistanis triumphed over this bigot by turning up in Calcutta for the World Cup opening ceremony. The Pakistani cricketers participation in Calcutta ceremony comes as another poignant reminder that Aussies have been blowing security concerns out of proportions to the point of ruining mega-event of One- Day cricket. The participation could not have come at a more opportune time since it has accentuated the vacuousness of Australian and West Indies assertions that they their lives would be at peril in Colombo. Even a spokesman of Liberation Tigers of Tamil Eelam (LTTE) has sought to reassure the Australians by assuring them that they could play in Colombo without any fear.We have nothing against foreigners, the spokesman said. But the bloated fears of the Australians would not be assuaged even by assurances coming veritably from the horses mouth. The Pakistanis, on the other hand, ran more insidious risks for Bal Thackeray has a tremendous clout in parts of India and his zealots were capable of striking at the Pakistanis in any part of that country. Further, Thackeray had not retracted on his words unlike categorical assurances by the LTTE spokesman. The Pakistanis took the Indian officials firm security guarantees at their face value and ran the gauntlet. No harm came to them and they came out with flying colours from this situation. This perhaps leaves out the Australians as mere sissies and cowards, as one Colombo newspaper put it.The Australians behaviour reinforces the hypothesis that perhaps more than security concerns had made them raise a hullabaloo about playing in Sri Lanka. Even before the blast that killed 86 people in Colombo and provided the Aussies with a final pretext to pull out, they had been hesitant to play their World Cup matches in Sri Lanka, tracing death mail to their players and acrimony that marked their home series against Australia and Pakistan. But former Pakistan captain Salim Malik also underwent the scare of a bomb hoax at his home as did the Australian fast bowler Craig McDermott. It can be safely assumed that such pranks of hoax bomb calls and death threats through the mail can be played by unscrupulous elements in the run-up to a sporting event. Pakistans greatest ever batsman Javed Miandad even invited Bal Thackeray to come over to Lahore to watch World Cup final.The World Cup is about goodwill and affinity among people and not about fomenting hatred. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960209 ------------------------------------------------------------------- Cup organisers harden stance on Lanka matches ------------------------------------------------------------------- NEW DELHI, Feb 8: World Cup cricket organisers rejected last-minute attempts to shift matches out of Sri Lanka, insisting Australia and West Indies must play there or forfeit the games. Inderjit Singh Bindra, Indias cricket board chief and a member of the tournaments Pak-Indo-Lanka organising committee (PILCOM), said Australia and West Indies had insulted the host nations. There is no question of changing venues, he added. Bindra said it was unlikely a compromise would be worked out at a meeting of cricket administrators in Calcutta, a day before the opening of the competition. The International Cricket Council (ICC), the games governing body, have called together officials from the three host nations and Australia, West Indies, Zimbabwe and Kenya for the meeting in Calcutta. Australia and the West Indies rejected offers by the Sri Lankan government and PILCOM to fly the teams from neighbouring India on the morning of the match by special flights. Bindra said he was terribly upset by the attitude of the two teams, saying they had insulted the hosts and hurt their national prestige. He added that PILCOM will hold a separate meeting in Calcutta on Saturday to consider penalties that may be imposed on Australia and West Indies for boycotting a match, unprecedented in World Cup history. Another PILCOM official said this week that seeking compensation from the defaulting nations could not be ruled out. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960213 ------------------------------------------------------------------- Australia, W.I. face fines of multimillion dollar ------------------------------------------------------------------- NEW DELHI, Feb 12: Australia and West Indies face the prospect of multi million dollar fines for refusing to play World Cup matches in Sri Lanka, angry organisers said. They will not get away lightly, and you can be sure that the last has not been heard on this episode, said Inderjit Singh Bindra, president of the Board of Control for Cricket in India. Australia and the West Indies face the possibility of heavy fines, probably in the region of three or four million dollars, said Bindra, a senior member of the joint Pak-Indo-Lanka organising committee (PILCOM). Arjuna Ranatungas men were awarded four points for the forfeited matches, meaning they have qualified for the quarter-finals even before the first World Cup ball is bowled. Australia and West Indies have opened up a pandoras box, an agitated PILCOM convenor-secretary Jagmohan Dalmiya said. Dalmiya said PILCOMs decision to send a joint India-Pakistan team to play a goodwill match against Sri Lanka in Colombo would serve two purposes. It is a measure of our solidarity with the Sri Lankans, but more than that it will prove that conditions were conducive to playing in Colombo, he said. Sri Lanka had expected about 35,000 to 50,000 spectators for each of the matches against Australia and West Indies. Tickets priced between 500 and 2,000 rupees (37 dollars), or the average monthly income of a Sri Lanka, sold out last month. PILCOM is unlikely to take any action against the two defaulting teams before the month-long tournament, which kicks off on Wednesday, until after the final at Lahore, Pakistan on March 17, an official said. But a lot will happen after that, the official, who requested anonymity, said. A split in world cricket cannot be ruled out. Nothing can be ruled out. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960214 ------------------------------------------------------------------- Now Aussies boycott Madras ------------------------------------------------------------------- NEW DELHI, Feb 13: Australias under-fire World Cup squad, who forfeited their opening match in Sri Lanka over bomb fears, have now refused to practise in the southern Indian city of Madras. Mark Taylors men were due to train at a bowling academy in Madras before their game against Kenya in neighbouring Visakhapatnam on February 23. But on Monday the Australians announced they wanted to train instead in the western metropolis of Bombay because Madras was too close to Sri Lanka. Ironically, the academy is run by former Australian fast bowler Dennis Lillee, and the decision to stay away coincided with a strong rebuke for the team from former national skipper Ian Chappell. Chappell, writing in the Indian Express on Tuesday, said the boycott of Colombo brought no honour and had the potential to ruin a tournament that had all the earmarks of being the best World Cup yet. Madras is the capital of Indias Tamil Nadu state, which is separated from Sri Lanka by a narrow strip of sea and which once harboured Tamil separatist guerrillas. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960212 ------------------------------------------------------------------- Solidarity show by Pakistan, India ------------------------------------------------------------------- CALCUTTA, Feb 11: India and Pakistan, bitter foes in three wars, agreed to combine for a goodwill game in Sri Lanka on the eve of the cricket World Cup. The extraordinary show of sub-continental solidarity came after Australia and West Indies confirmed their refusal to play Cup matches on the island because of safety fears. Indias captain Mohammad Azharuddin will lead the combined squad of 12, with six players from both India and Pakistan, in the match against Sri Lanka in Colombo on Tuesday. The World Cup starts the following day. It is good, in a way we will get some practice, Sri Lanka captain Arjuna Ranatunga said. The aim of the occasion is to show that India and Pakistan were satisfied with the assurances of safety given to Australia and West Indies by the Sri Lankan authorities. 4

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