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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 17 October 1996 Issue : 02/42 -------------------------------------------------------------------

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

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

CONTENTS

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NATIONAL NEWS

NA to start 4th year next month Law being drafted to fight corruption Financial deals of 18 MNAs under watch Gang busted for making fake PM directives Issue of nuclear furnace sale to Pakistan resolved South Asia is home to half of worlds poor: UN ---------------------------------

BUSINESS & ECONOMY

Cabinet accedes to IMF demands 50 years of swindling brings economy to ruin Inflexibility of IMF terms causing economic crisis Why foreign investment hurts The quagmire of corruption Consensus on Rs50bn farm tax CPI edges up to 9.89% in September Moodys team to assess economic situation Stock prices ease modestly: no hasty selling ---------------------------------------

EDITORIALS & FEATURES

The partys over Ardeshir Cowasjee The self-respect of a bankrupt country Ayaz Amir An earthquake of rumours Omar Kureishi India, Pakistan: a comparison Dr Ishrat Husain Wanted: a pair of clean hands Mohammad Malick -----------

SPORTS

How much cricket should we really play? Kenya trophy missed despite Afridis splendid show Zimbabwe want backing from ICC for cricket uplift Nawaz Tiwana back as hockey president Show cause notice to Rashid Latif

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NATIONAL NEWS

961012 ------------------------------------------------------------------- NA to start 4th year next month ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, Oct. 11: The current National Assembly will commence its fourth parliamentary year with the president addressing a joint sitting of the two houses on a mutually agreed date in the first week of November. The fourth National Assembly of Pakistan since the lifting of Zias martial law has already achieved the unique distinction of completing the mandatory 130-day sitting of its third parliamentary year. The current session which has been requisitioned by the opposition to discuss corruption is regarded as an extra sitting and not an obligatory session. Of the three earlier assemblies since the lifting of Martial Law in December 1985, the first (Junejo) and the third (Nawaz Sharif) could only complete two parliamentary years while the second (Benazirs first) could not even complete its second year. Late General Zia addressed three joint sessions ( not counting the inaugural 1985 session which he did while the country was still under martial law) of Junejo parliament. Ghulam Ishaq Khan addressed two of Ms Bhuttos ( the first) and three of Nawaz Sharifs. So, if no slip occurs between the cup and the lip between now and the first week of November President Leghari will achieve the unique distinction of inaugurating the fourth parliamentary year of a National Assembly elected since 1985. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961013 ------------------------------------------------------------------- Law being drafted to fight corruption ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Oct 12: The government on Saturday decided to introduce a constitutional amendment in the light of the presidents letters about an across-the-board accountability, sent to the NA speaker and Senate chairman, Dawn has learnt from authentic sources. The decision was taken at a top-level meeting of the Peoples Democratic Front, presided over by Prime Minister Benazir Bhutto. The meeting discussed the existing anti-corruption laws as well as a draft bill presented by the leader of the opposition, Mian Nawaz Sharif, a source said. The law ministry has been directed to prepare a draft of the constitutional amendment within a couple of days. Source said: For initiating an across- the-board accountability, a new chapter will have to be added to the Constitution. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961014 ------------------------------------------------------------------- Financial deals of 18 MNAs under watch ------------------------------------------------------------------- Mohammad Malick ISLAMABAD, Oct 13: The government has decided to keep a close watch on the activities and financial dealings of a select group of 18 legislators, comprising 10 minority MNAs and 8 elected in the FATA quota, reliable sources told Dawn. The source revealed that the decision was taken after the witnessing of the strange disappearance of FATA MNAs from the house during the voting on the issue of the referral of the opposition moved bill on accountability commission to the select committee. According to government sources, some of the FATA MNAs who had been present in the house during the debate were missing at voting time while a similar report has been furnished about FATA senators in the same issue. Although the situation did not come to a similar head in the Senate but according to governments own reports, the FATA senators too had done a similar disappearing act in the upper house as well. The decision to keep a close watch on the 18, taken in a top level strategy session of the ruling party, according to the source would be conveyed only verbally, to the bosses of relevant departments like income tax, CBR etc. within the next 24 hours. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961016 ------------------------------------------------------------------- Gang busted for making fake PM directives ------------------------------------------------------------------- Bureau Report ISLAMABAD, Oct 15: A gang, comprising two retired army officers and three government servants, allegedly issuing fake directives from the Prime Ministers Secretariat for the last one and a half years, has been busted by the Federal Investigation Agency. The gang, headed by a retired major, in connivance with a clerk of the secretariat, was allegedly fabricating the directives to get favours, permits and jobs ,the Director- General , FIA, Rehman Malik, told a press conference here on Tuesday. The gang, though active for the last one and a half years, was unearthed when, through a forged directive from the secretariat , issued under the fake signature of Ms Naheed Khan, it tried to obtain a contract from the Utility Stores Corporation. In the directive it had asked the USC to purchase certain items at high prices from M/s Irfan Ashfaq & Company. The managing director, USC, Islamabad, considering the letter to be genuine, got it processed and came to the conclusion that it would not be possible to purchase the given items at the quoted high prices and informed the secretariat accordingly, Mr Malik added. The secretariat referred the case to FIA, which conducted a raid in Haripur and arrested Zahid Mian Bhutto and recovered from his possession blank letterheads of the secretariat and some fake letters. Mr Malik disclosed that the gang had rented a house in Islamabad where a 12- year- old computer operator was employed to prepare letters. The FIA, in the wake of the incident, had set up a permanent anti- fraud unit, Mr Malik said and added that it had been suggested that the secretariat should ask all the government departments, agencies and divisions to verify directives sent to them by the secretariat or ministries. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961011 ------------------------------------------------------------------- Issue of nuclear furnace sale to Pakistan resolved ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Oct 10: China and the US had resolved the nuclear furnace sale issue to Pakistan before some CIA insiders and a section of the Washington media tried to blow it up into another ring magnet type crisis that could have invoked US sanctions against Beijing. Evidence was available here on Thursday that the US was not concerned about the new sale as the Washington Times had put it in its lead story on Wednesday. State Department spokesman Nick Burns rejected the report on Wednesday saying Beijing had honoured its commitment to Washington not to make such sales to nuclear facilities which lack proper safeguards. The Washington Post on Thursday provided further evidence. It said in an exclusive report the Chinese government had recently admitted to Washington that it sold Pakistan some sensitive nuclear-related equipment going beyond the ring magnets but Washington has concluded that the sale occurred before China promised to halt such sales last May. Quoting US officials, the Post report said China made the private admission last month, after the State Department sent a demarche, or diplomatic notice, to Beijing raising concerns about the transfer. At the time the demarche was sent, US officials believed that the transfer likely constituted a violation of Chinas pledge last May. But after conducting an internal probe of the deal, the Chinese government informed Washington that the transfer occurred in late 1995 and early 1996, well before its pledge. The US intelligence community subsequently confirmed this account independently, according to four US officials familiar with the matter, the Post said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961016 ------------------------------------------------------------------- South Asia is home to half of worlds poor: UN ------------------------------------------------------------------- Humair Ishtiaq KARACHI, Oct 15: The International Day for the Eradication of Poverty is being observed tomorrow, October 17, with the aim of promoting awareness of the need to root out poverty and destitution across the globe, particularly in developing countries. Figures released on the occasion by the United Nations Information Centre in Islamabad show that of the 5.7 billion people on the planet, an estimated 1.5 billion live in poverty, with income and consumption levels below nationally defined parameters. In fact, the number is increasing by approximately 25 million every year and is expected to quadruple in a single lifetime if the current economic and demographic trends are not arrested. The biggest concentration of severely impoverished people, about half of the total, is in South Asia, which is home to about 30 per cent of the worlds population. Another 25 per cent of the total are in East Asia. Citing ever-increasing population rates, unemployment and illiteracy, the UN report says that over one billion of the worlds poorest people subsist on less than $1 each day, and the picture gets even more gloomy with the fact that in the worlds 48 least developed countries  with 10 per cent of the world population, but only one per cent of the world income  both economic growth and trade continue to decline in a trend which began in the 1980s. The International Day for the Eradication of Poverty is observed on a global scale on October 17 since 1993, with 1996 being the International Year on the matter. The United Nations is actively considering to launch a Decade for the Eradication of Poverty soon. After all, as the UN report rightly points out, the struggle against poverty is simultaneously a struggle for human dignity, sustainable development and peace. ******************************************************************* DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************* INTERNET PROFESSIONALS WANTED * MS in computer science, with two years experience, or, BE with four years experience in the installation and management of an ISP. * Must be able to select equipment, configure, and troubleshoot TCP/IP networks independently. Preference will be given to candidates with proven skills in the management of a large network and security systems. * We have immediate openings in Karachi, Lahore and Islamabad. * Competitive salary and benefits, and an exciting work environment await the successful candidates. send your resume to by e-mail : ak@xiber.com by fax : +92(21) 568-1544 by post : Dr. Altamash Kamal, CEO Xibercom Pvt. Ltd 2nd Floor, Haroon House Dr. Ziauddin Ahmed Road Karachi 74200, Pakistan http://xiber.com

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BUSINESS & ECONOMY

961011 ------------------------------------------------------------------- Cabinet accedes to IMF demands ------------------------------------------------------------------- Bureau Report ISLAMABAD, October 10: The Federal Cabinet on Thursday gave mandate to the economic team of the prime minister to take measures in the light of conditionalities imposed by the International Monetary Fund (IMF) and enter into an arrangement with the Fund for the release of third tranche of 80 million dollars out of the total 600 million Standby Agreement. Prime Minister Benazir Bhutto who chaired the meeting apprised her cabinet colleagues about the talks with the officials of International Monetary Fund in the US and placed before them the set of conditions imposed by the IMF for the release of funds. The cabinet after discussing the conditions attached to the aid and economic fall out of the cessation of aid by the IMF gave full powers to the prime ministers economic team to hold another round of talks with the international agency, a source told Dawn. The cabinet reviewed the countrys economic situation and was briefed about the damage done to the economy by the strikes in various sectors of the economy for about two-and-a-half months following announcement of the budget. The cabinet felt that in order to offset the negative impact of those strikes and other negative factors, bold and difficult decisions were needed to consolidate sustained economic growth and quickening the countrys march towards meaningful progress, said a press release issued later. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961012 ------------------------------------------------------------------- 50 years of swindling brings economy to ruin ------------------------------------------------------------------- M. Ziauddin The successive governments in Pakistan, whatever may be their hue, military, civilian or political, have shown an exceptional propensity for living beyond the countrys means. And since most had been thrust into power without the peoples mandate or with fractured mandate, they could do, or did, little to improve the lot of the national economy. Instead, they chose the easier way out . They extorted the needed resources from the voice-less and clout-less poor and the middle classes through ever increasing prices and tariffs and let the powerful and the rich, the feudals as well as the industrial barons which constitute the ruling elite, go on amassing their ill-gotten rentals without having to pay their tax dues in full. And every time they needed more than what they could extract from the countrys poor to sustain their profligacy, they went begging to multilateral donor agencies which would usually have , by proxy, passing strategic interests in Pakistans short term well being or they went to rich countries having immediate commercial interests in the Pakistani markets to recoup the outgoing concessional capital flows by selling useless military and civilian toys. Faces have changed over the years. But the story has remained more or less the same throughout these last 50 years. From Ghulam Mohammad, Chaudhry Mohammad Ali, Mohammad Shoib, Ghulam Ishaq Khan, Mahbubul Haq, Sartaj Aziz, and VA Jaffarey to the Lilliputians like Shahid Hasan Khan, all have played the same fraud with the people of this country. Every one wrote his own version of the same swindle of how to fool them to rule them. These people and the governments they served never felt any qualms while going begging to the multilateral or bilateral donors for a few crumbs. They would increase the prices and tariffs of the essentials rendering the poor poorer even before going to these donors for aid in order to convince the latter of their good financial sense and management skills. But as soon as these donors would, in return for their aid, ask for even a symbolic curtailment in the unearned incomes of the rich and the ruling elite or if these governments would receive even a hint that as a result the life styles of the countrys rich and the powerful would have to be scaled down to an extent, these governments and their minions would start invoking the long forgotten national pride. They would put to use every kind of propaganda vehicle in spreading the falsehood that the donors were asking the country to give up its national pride and its very sovereignty for a paltry sum of aid. Then through the same vehicles they would make the heart warming and soul lifting announcement that the government has for the sake of national pride and in order to protect the countrys sovereignty, refused to accept the insulting conditions of the donors which in actual fact would have caused the rich to suffer some slight hardships. This has been repeated so many times in the last 50 years that you just have to sing the first two or three notes and the nation comes to know the song that would follow. Tightening of the belt further and more price increases and no more multilateral programmes of economic stability for the time being. The same notes were repeated by the prime minister first in her interview with the CNN in New York and then with the Financial Times in London last week. And this was immediately followed up by increases in petroleum prices. You simply cannot blame the economic mismanagement and corruption indulged in by you on multilateral donors. They give their opinion only when you go to them in desperation and ask for their advice. And they put their conditionalities not because they enjoy doing it but because you have requested them for assistance. And if their conditionalities are becoming ever tougher with every new arrangement, it is not them who are to be blamed but you yourself have lost your credibility by trying to take liberties with earlier conditionalities. Yes of course, the country would not go bankrupt if the IMF did not release the last two tranches of the Standby arrangement. Neither would it default on its foreign loans. But it would surely lose its international risk rating if a new arrangement is not agreed upon quickly. And as a consequence it would lose the private capital inflows and commercial loans needed to sustain a modicum of economic growth. In the good old bipolar world, the donors rated a country not on the basis of good governance or efficient financial management and less corruption, but on the basis of its ideological distance from Washington and Moscow. So even the most inefficient, the most corrupt and the most ruthless governments in the context of their human right record would be assured of a fat and continuous flow of concessional capital if that government was a camp follower of the so-called free world. Things have undergone a sea change since the collapse of the Soviet Union. Now you are on your own. Most of the concessional aid is going to Eastern Europe. There is not much left of such aid for the obscure and precarious democracies of South Asia. But if you manage your economy properly, if the level of corruption is no more than what is considered normal and if your human right record is not bad, then you get substantial flows of foreign private investment on the back of commercial loans on reasonable rates. Such investment and commercial loan flows are also guaranteed if you are implementing one or the other economic stabilisation programmes of the multilateral donors. However, if you mismanage your economy, indulge in corruption, and violate human rights and also do not want any economic stabilisation arrangement with the IMF( which impinges on the financial interests of your countrys rich, the powerful and the ruling elite), then you can hardly hope to get any foreign private capital inflows and neither can you hope to obtain commercial loans at reasonable rates. Faced with such possibilities governments of the day in Pakistan have tended to appeal to the sense of patriotism of the gullible and have tried to create the impression that since the donors were asking for reduction in defence expenditure (there is nothing wrong with rationalising this out of control expenditure) and also want further increases in taxes( what taxes, they would never state), it was thought prudent and in the national interest to reject the conditionalities and refuse to succumb to the pressure of these Jewish  organisations. Very conveniently, they would ignore to mention in their sales pitch the fact that if a country whose population is growing at the rate of 3.5 per cent does not get enough foreign inflows in the face of its abysmally low savings rates of 14 per cent, it would not be able to enhance its investment rate to about 20 per cent to achieve a growth rate of over six per cent needed to generate barely enough resources to feed, cloth and provide shelter its ever expanding teeming millions. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961012 ------------------------------------------------------------------- Inflexibility of IMF terms causing economic crisis ------------------------------------------------------------------- Aftab Ahmad Khan The INTERNATIONAL MONETARY FUND (IMF) has reportedly requested the Government of Pakistan to prepare a new package of economic reforms designed to achieve: (i) a cut in the budget deficit in relation to Gross Domestic Product (GDP) through revenue and expenditure measures while protecting a core set of investment expenditures and raising outlays under the Social Action Programme (SAP); (ii) balance of payments viability in a milieu of trade liberalisation meaning, that at the conclusion of the programme there will be no further need for extra-ordinary external financing; (iii) price stability; and (iv) sustainable growth at a respectable rate. In this regard, it may be relevant to mention here that a 15-month Stand-by Arrangement for SDR 401.85 million was approved by the IMF on December 13, 1995, after cancellation of the existing Enhanced Structural Adjustment Facility (ESAF) and extended arrangements agreed to on 22 February, 1994. The balance of the present stand-by at April 30, 1996 which was not disbursed was SDR 214 million. What is disturbing is that Pakistan will not be able to get this undisbursed balance of SDR 214 million without convincing the IMF about its ability to implement a programme of economic stabilisation and structural reforms. Faltering efforts The IMF somehow feels that Pakistans adjustment and reform efforts have faltered and as such a new economic programme should be rigorously implemented to achieve its objectives and rapidly re-establish confidence in the economy. Fiscal consolidation should be a cornerstone of the adjustment programme. The other key element, according to the IMF, should be the removal of the regulatory duty and a further reduction in tariff rates. In recent years, the conditionalities attached by the IMF to Stand-By Arrangements, Extended Fund Facility (EFF), Structural Adjustment Facility (SAF) and Enhanced Structural Adjustment Facility (ESAF) have provoked considerable criticism in many countries of the developing world primarily on account of de-stabilising social and political implications. Consequently, the Funds image in the Third World is an ugly one and it is seen as the champion and protector of the existing inequitable international economic order wherein poor nations are being exploited by unfair global market structures. There are five basic components of the typical IMF conditionality attached to Structural Adjustment Programmes: (1) abolition or liberalisation of foreign exchange and import controls as well as reduction in tariff rates; (2) devaluation of the currency and flexible management of the exchange rate; (3) a stringent anti-inflation programme comprising (a) control of bank credit and elimination of concessional credit programmes for priority sectors, (b) reduction in fiscal deficit through curbs on expenditure, especially in the area of subsidies, along with increases in taxes and in public utility charges, (c) control of wage and salary increases, in particular ensuring that such increases are at rates lower than inflation rates; and (d) dismantling of various forms of price control; (4) greater opening of the economy to international investment; and (5) privatisation of public sector enterprises to the maximum feasible extent. While such polices may be successful in improving less developed countries (LDCs) balance of payments, they can be politically very unpopular because they result in aggravation of inequalities in society, enhance unemployment and disproportionately hurt the lower and middle income groups. Some Third World economists have argued that the IMF functions within a First World dominated global economic system as the chosen instrument for imposing imperialist financial discipline upon poor countries. It has also been argued that the IMF adjustment and stabilisation policies disregard one of the basic insights of the early development period of the 1950s. Much thinking prevalent then had been based on a view of development and growth as a process of cumulative causation or a system of beneficial/ vicious circles or spirals. The vicious circle of poverty, for example, was well-established: poor countries are poor because they have low savings and investment and they have low savings and investment because they are poor. In the Stages of Growth paradigm developed by Prof. Rostow, this took the form of saying that the earlier stages of assembling the pre-conditions of growth are very difficult but once the various elements have been assembled and can complement each other everything will fall into place and the economy will take-off. The present IMF doctrine of adjustment is in danger of disregarding all this. It holds that one can temporarily deflate, arrest growth, reduce expenditures on physical and human investments while at the same time gathering strength for a new and hopefully more sustainable period of growth and development. This disregards the likely possibility that each cut-back may make it more difficult to resume growth from such a weakened base. Steep price Again, the neo-liberal ideology of development, which is the guiding philosophy of the Fund, places a high priority on using the price mechanism to allocate the resources efficiently. Under ideal conditions of full employment and perfect competition, these could result in optimal factor combinations in production, and the most efficient composition of output. However, the ideal circumstances required for the neo-liberal approach to work properly are non-existent in real life, especially in the developing world. Many developing countries have discovered that the price of following IMF advice is very steep indeed. Countries as far flung as Egypt, Jordan, Jamaica, Brazil, Philippines, Morocco and Zimbabwe have gone through traumatic politico-economic shocks on account of IMF-imposed changes. For understandable reasons, the IMF adjustment programmes for developing debtor countries emphasise rectification of macro-economic imbalances. There, are however, many debtor countries in the Third World where macro- economic equilibrium cannot be attained unless the out-flow of resources is first reduced. It is accordingly important to ensure that countries are not denied debt relief when good performance is unattainable in the absence of such relief. Breaking the vicious circle of domestic economic disorder and external resource shortage requires conditionality to fully take into account the complex linkages among external payments constraint, macro- economic imbalances, growth performance and policy effort. Not-withstanding the fact that the Fund has introduced greater flexibility in its programmes in recent years, the main thrust of its policies is on demand management and an analysis of the social and political impact of its programmes has yet to be formally incorporated in the framework of its operations. The desirability of conditionalities is not generally questioned. It is, however, the nature of these conditionalities and the manner these are administered that is objectionable. In a poor developing country with a large segment of the population living below the poverty line, shock treatment, in the form of a sharp and sudden reduction in domestic absorption, may be successful in achieving fiscal improvement and sustainable balance of payments, but it could be at the cost of distress for weaker sections of the population and de-stabilising social and political tensions. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961012 ------------------------------------------------------------------- Why foreign investment hurts ------------------------------------------------------------------- Dr Bharat Jhunjhunwala THE ASEAN economic ministers are exceedingly concerned about increasing competition from China and India for attracting foreign investment. They have mooted the idea of establishing an ASEAN Investment Area to maintain these inflows of capital. Why is it, though, that they need to attract foreign investment continually? Will they never break out of such dependence of foreign capital inflows? Has foreign investment proven to be a short run boon but a long run curse for them? There indeed may be a reason why they are worried. Economic theory tells us that foreign investment leads to increased investment only as long as it continues to flow in. Once the inflow ceases, the investment thereafter is reduced. In the long run, therefore, foreign investment hurts. The reason is that the pie that is available in the long term actually shrinks in the period of foreign inflows. Let us think of the total investment in terms of two pies - those of the foreign and domestic investors. The foreign investors may decide to shift from reinvestment to repatriation any day. This is the short run pie. The domestic investors pie, on the other hand, goes on ever increasing. Restrictions on capital convertibility or preferences of domicile ensure that their profits continue to be reinvested in the domestic economy. This is the long term pie. As foreign investment flows in, the total availability of capital in the host economy increases. The law of diminishing returns tells us that the rate of return on capital would decline correspondingly. Thus, the domestic pie grows at a slower pace than it would have grown without foreign investment. Once the foreign investors start repatriating their profits, the investment comes only from the domestic pie. This pie is now smaller than it could have been. So is the long term investment. Foreign capital flows did lead to a short run gain but caused loss of investment and growth in the long run. This is not a hypothetical scenario. As of now, there is not one major country in the world which has been able to maintain its growth rates after foreign investors have withdrawn. The experience of countries that had attracted high foreign investment in the seventies shows exactly this. Colombia, Guatemala, Ecuador and Mexico are four countries which had received foreign investment in excess of 1% of their GDP in the seventies but failed to attract more of the same in the eighties. The growth rates of all four were negative in the eighties - between (-)3.3% and (-)4.3%. Even among the countries which continued to attract high levels of foreign investment in the eighties, Sri Lanka, Argentina and Brazil had negligible or negative growth rates at 0.2, (-)2.4 and (-)4.8% respectively. The increase in the investment pie due to foreign investment inflows was more than wiped out by the contraction of the domestic pie. Only Chile, Thailand and Malaysia continued to attract high levels of foreign investment and were able to maintain positive growth rates. The real test for these countries too is yet to come. We have to wait an watch what happens after the foreign investors withdraw. The ASEAN countries would do well to learn the lesson early. By continually running after foreign investment they may be impairing their chances of maintaining high growth rates in the long run. Proposals such as the ASEAN Investment Area are only a short run palliative which may only worsen their situation in the long run. They should, instead, examine ways of further enlarging their domestic investment pie. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961012 ------------------------------------------------------------------- The quagmire of corruption ------------------------------------------------------------------- R.M.U. Suleman CORRUPTION in Pakistan has now become the most contentious politics- economic issue at home as well as abroad. Internally, a serious contention is going on between the head of the state, the head of the government, both houses of parliament, the judiciary, the leader of the opposition and the numerous interests standing to gain from it. Externally, too Pakistans scores on the game of corruption are among the highest. Taking up the external appreciations first, the Berlin-based Transparency International had given Pakistan the third rank in corruption in 1994 and second rank in 1995. It will be interesting to see whether this upward climb in the global rogues gallery continues in 1996. Early this month, the World Bank listed Pakistan among the three most corrupt borrowing countries and has ordered surprise raids by special squads to audit projects funded by the Bank in these countries. Pakistan has recently been added to the list which consists of Kenya and Poland. The Banks President, James Wolfensohn, has hired the independent Swiss accounting firm Societe Generate de Surveillance (SGS). In Pakistan we are quite familiar with this firm. The audit squads will visit countries where the World Bank has a portfolio of at least one billion dollars, and 20 on-going projects in these three countries have been targeted, including the Hub Power project in Pakistan. Mr Wolfensohn, who called on Prime Minister Benazir Bhutto at New York after the cancellation of his visit to Pakistan during his forthcoming South Asian tour, ordered the creation of special squads after he learned that billions of dollars were being lost through corruption and negligent or non-existent supervision of projects. We want to put the fear of God in them (Pakistan, Kenya and Poland), the World Banks Chief Procurement Officer, Raghavan Srinavasan, was quoted as saying. Judicial commission Internally the most powerful group interested in turning a specific, proven and large-scale case of corruption into a general and nebulous issue of corruption was that of 500 top defaulters of the banking system. These defaulters owe close to Rs 100 billion to indigenous creditors and represent nearly 70 per cent of the defaulted amount. The Opposition in parliament wanted the setting up of a judicial commission to consider the issue of corruption including the cases of bank defaults. The government wanted the issue to be tackled by the Standing Committee on Law and Parliamentary Affairs, which has a government majority and thus is unacceptable to the Opposition. Earlier, the Federal Anti-Corruption Committee (FACC) was appointed to unearth and process serious cases of corruption. This committee recommended a number of well-proven cases for government action, but no action was taken and the files of such cases were put in cold storage for use in special contingencies. Such an approach of selective justice has inspired little confidence. This is the background that has brought intervention from the judiciary as well as the President. The Lahore High Court has recently restrained the Government of Punjab from filling government jobs on the basis of quotas fixed for MPAs and other political functionaries. One can only hope that the vacancies are filled on merit. Presidents action President Leghari has invoked Article 56(2) of the Constitution to send direct messages to the National Assembly and the Senate to appoint a Select Committee and re-draw the laws to deal with the issue of corruption. He has proposed the formation of special courts for adjudicating corruption cases involving holders of public offices and government servants of Grade 22, in consultation with the Leader of Opposition and the Chief Justice of the Supreme Court of Pakistan, besides the Prime Minister. The Presidents proposals envisage that the special court consisting of three permanent high court judges, will decide cases within 90 days of their filling. It was also proposed that the Wafaqi Mohtasib be empowered to investigate, refer and prosecute all cases before the special courts without the approval of the government as is obligatory under the existing laws. Moreover, it was suggested that the Wafaqi Mohtasib also be appointed by the President in consultation with the Prime Minister, the Leader of Opposition and the Chief Justice of Pakistan. The President also proposed that any person found guilty by the special court should be debarred from holding public office for seven years. The Minister for Interior while expounding the governments views has called for an across-the-board accountability, including the President. He has also raised some technical points e.g. right of appeal in a high court against the decision of special courts and fixation of time period from when the process of accountability should begin. Some would like accountability to start from 1947, a logical suggestion, but one that would deprive the exercise of all focus that needs to be concentrated on cases where the required evidence is still available. There are others who are calling for accountability before the next elections. Essential conditions Without proper laws and appropriate machinery of the courts, prosecution and the like to enforce them, there can be no hope of eradicating or even reducing corruption. But laws and legal machinery are only the essential condition for mitigating corruption. The sufficient conditions lie deep in our socio-economic conditions, starting from the grass-roots level and going right up to the top. In general, corruption is used to obtain two types of benefits from the government speeding up of bureaucratic procedures and recognition or protection of transgressions into the doubtful or grey area of legality. Informal business is the richest hunting ground for grass-roots level bribery, the proceeds of which reach right up to the highest bureaucratic and political levels. Such businesses are known to pay out between 10 to 15 per cent of their gross income in bribes and commissions. The owners of formal small businesses, on the other hand, are known to pay no more than 1 to 5 per cent. Non-business bribery is far more pernicious and hard to quantify. The families of the youth put behind the bars on trumped-up charges bring tremendous returns to the police as well as magistracy. The state legislates almost exclusively to distribute unearned income and has transformed us into a democracy of pressure groups. Businesses channel their natural competitive real into establishing close ties with the political and bureaucratic authorities instead of into a contest to serve consumers better. Established business owners fight to maintain the privileged situation they have managed to achieve over the years, while new owners, who also want a slice of the pie, fight to win partial advantages through political participation. A legal system whose sole purpose is redistribution thus benefits only those best organised to establish close ties with the people in power. It ensures that the businesses that remain in the market are those which are most efficient politically, not economically. The legal system changes as the relative position of those who manage to influence the government changes. This is why we often hear that our legal system lacks uniformity and stability, our laws are negotiable, there is legal anarchy, and what matters is not what you do or want but which politician or bureaucrat you know. Characteristic results Nor should it be surprising that bribery and corruption are characteristic results of a legal system in which complex controls have made competing for unearned income the predominant form of lawmaking. Almost 99 per cent of the governments rules, which are the means by which wealth is redistributed or opportunity for bribery provided, emanate from the executive branch, which adopts them without democratic consultation or control. It is the executives ability to legislate redistribution without any debate in parliament or elsewhere that enables redistributive combines to interfere in law-making. This also explains why, in countries like ours, property rights are not protected against the political powers-that-be. A careful study of Islamabad Residential Sectors Zoning (Building Control) Regulations, 1993 will make this point clear. Our legal system is such that aristocratic families or large commercial associations are its main beneficiaries. In the absence of political decentralisation, the elected politicians no longer make decisions about many issues. As regulations and controls proliferate and grow increasingly complex, the responsibility for them and the actual power to make decisions about redistributive mechanisms gradually descend through the civil service maze until they reach lower bureaucratic levels. Since the bureaucrats who deal directly with the combines are some of the countrys lowest-paid employees, it is almost inevitable that they will sell themselves to the highest bidder. There is some truth in the trite saying that there are no dishonest persons, only dishonest situations. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961014 ------------------------------------------------------------------- Consensus on Rs50bn farm tax ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Oct 13: The two high-level meetings held here on Sunday and attended by President Farooq Leghari, Prime Minister Benazir Bhutto, the four chief ministers and other high officials of the federal and provincial governments decided to impose tax on agriculture income to meet the demands of the World Bank and the IMF. Informed sources told Dawn that there were two sessions during which the levy of tax on agriculture income was discussed in details and a decision was taken that the government must strive to increase its revenue base by recovering additional Rs.50 billion taxes annually so that Pakistan could be pulled out of the current economic crisis. The officials of the ministry of finance and the Central Board of Revenue presented their assessment of the situation by claiming that the agriculturist lobby could easily pay about Rs. 50 billion every year on their annual income estimated at Rs. 550 billion. During both the meetings, sources said, the participants agreed with the presentation of the ministry of finance and the CBR and called for making urgent efforts to recover the new tax. Except for Punjab, three other provinces have already adopted a legislation to impose tax on agriculture income. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961014 ------------------------------------------------------------------- CPI edges up to 9.89% in September ------------------------------------------------------------------- Our Correspondent ISLAMABAD, Oct 13: The rate of inflation increased by 9.83 per cent during September 1996, as compared to corresponding month of last year, according to a Federal Bureau of Statistics press release on consumer price index here on Sunday. During the first quarter of 1996-97, the CPI index, which is the measure of inflation rate, also edged up slightly to 9.89 per cent against the official estimate of 9.77% increase for the whole of last year, according to the Federal Bureau of Statistics press release here on Sunday. The rising trend is also reflected by 9.83 per cent during September when compared with the corresponding month of last year, while in August 1996, CPI had risen by 9.54% over the August of 1995. Using 1990-91 as the base, the FBS has estimated that the CPI for September 1996 stood at 181.99, showing an increase of 1.16% over the Index of August 1996 when it was 179.9. All the group indices have shown an increasing trend, according to FBS press release. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961014 ------------------------------------------------------------------- Moodys team to assess economic situation ------------------------------------------------------------------- Omar R. Quraishi KARACHI, Oct 13: A delegation of two to three senior analysts of the US Credit Rating Agency, Moodys Investors Service is arriving here on Oct 21 for about a week visit to hold meetings with the officials of the State Bank of Pakistan and Finance Ministry to take a decision on Pakistans investment and credit rating. Reliable sources in banking and financial sectors believe that Karachi is included in the itinerary of the Moodys analysts who would take into account whole picture of economy before taking any decision on assigning any credit rating. Moodys had announced towards the end of September that it was putting Pakistan under review. Pakistans current B1 long-term foreign currency rating, its B2 sovereign ceiling for foreign currency deposits, and its B1 rating for foreign currency bonds and notes have all been placed for a review. If the downgrade goes through, the B1 rating for Pakistans long-term foreign currency debt and foreign currency bonds and notes would be lowered to B2, the sources in financial circles said. Similarly, the B2 rating for the sovereign ceiling for currency deposits would be lowered to B3, they said. The ratings system for both Moodys and Standard & Poors  the other major US credit rating agency  begins with an Aaa rating, which is the highest possible rating most suitable for investors and lenders, and goes down gradually to D. The B1 rating, according to Moodys system of judgement is reserved for high risk obligations. The rating lower than B2 is B3, according to Moodys ratings chart, after which comes Caa. This Caa rating is given when a national economy is in default. (The Standard and Poors equivalent for this is the CCC+ rating.) As for the repercussions of possible downgrading of Pakistans credit rating, the sources believe the first negative impact would be on the governments plan to float a bond in the US market next December to raise foreign currency. Senior analysts in financial and banking circles told Dawn the downgrade, if it came, would increase the interest rate the Pakistan government would have to pay for taking foreign currency loans by between 0.5 and 0.8 percentage points. They said Pakistan, for an 18-month loan, already pays around 3.4 percentage points more than the international benchmark London Interbank Offer (LIBOR) Rate of around 6.5%. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961016 ------------------------------------------------------------------- Stock prices ease modestly: no hasty selling ------------------------------------------------------------------- Staff Reporter KARACHI, Oct 15: Stock prices on Tuesday eased modestly as investors took profits at the available margin aided chiefly by technical factors but there was no hasty selling. The KSE 100-share index fell 7.35 points to 1,379.60 as compared to 1,386.95 a day earlier, reflecting the weakness of some of the leading base shares. But unlike previous sessions, there were buyers at each dip apparently on the perception that the market has already touched the bottom and there could be strong technical rebound at any time. The lead, of course, is provided by some of the leading foreign funds who are in the rings in a big way and promptly picked up by the locals, there are reasons to believe that a sustained run-up might now be overdue, said a leading member of the KSE. Broadly speaking investors are now divided in two major groups. Those who are the exponent of long-term buying strategy are in the rings and making up short positions at the current lower level irrespective of the political background news. A vast majority of investors, however, is inclined to swim or sink along with foreign funds. They buy when they and they sell when they foreign funds sell, they added. They said foreign support could hardly prove a market factor as it is not more than peanuts but what it does is that it restore investor confidence in the market. According to official figure available from the KSE, foreign fund buying seldom exceed the figure of about Rs 800 million in a month. Floor brokers said it were the local financial traders who set the direction for the market but sometime they too are out-manoeuvred by some of the local depressing news. The signals from the political front might now remain disturbing owing to a combination of negative factors and investors have to choose from the equally difficult options, they added. The bulk of alternate bouts of buying and selling, therefore, remained confined to half a dozen most active scrips, notably Hub-Power after the news that it is expected to be fully operational by the next year followed by PTC vouchers, which also moved both ways. Others to follow them were Dewan Salman, ICI Pakistan, notably its right shares, Fauji Fertilisers, FFC-Jordan Fertiliser and NDLC as foreign buying remained centred around these scrips. Among the top gainers, Dadabhoy Insurance was leading, which rose sharply partly because of shortage of the floating stock. Some of the textile and cement shares followed it on short-covering at the lower levels and so did some IGI Insurance. But energy shares did not react favourably to some positive developments and fell further under the lead of PSO, Attock Refinery and some other and so did most of the pharma MNCs including Parke-Davis, Knoll, Glaxo and Cyanamid Pakistan. Auto shares were, however, an exception, which rose under the lead of Hinopak Motors and Atlas Honda after the announcement good dividend at the rate of 50 per cent plus 20 per cent bonus shares and 15 per cent cash and 10 per cent bonus respectively. Other good gainers were led by Brooke Bond, Engro Chemicals, BOC Pakistan, Pak-Suzuki Motors, and Grays of Cambridge. The most active list was topped by Hub-Power and PTC vouchers, lower 10 and 55 paisa respectively on 7.669m shares each, followed by ICI Pakistan (r), off 55 paisa on 2.210m, ICI Pakistan, lower 85 paisa on 1,150m, Dewan Salman, easy five paisa on 0.965m, Fauji fertiliser, lower 25 paisa on 0.703m and FFC-Jordan fertiliser, down 10 paisa on 0.225m shares. There were some other notable deals also. Trading volume rose to 23.195m shares from the previous 22.870m shares, while losers led gainers by 139 to 74, with 77 shares holding on to the last levels. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. Annual Subscription Rates : Latin America & Caribbean US$ 93 Rs. 2,700 North America & Australasia US$ 93 Rs. 2,700 Africa, East Asia Europe & UK US$ 63 Rs. 1,824 Middle East, Indian Sub-Continent & CAS US$ 63 Rs. 1,824 Please send the following information : Payments (payable to Herald) can be by crossed cheque (for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). Name, Postal Address, Telephone, Fax, e-mail address, old subscription number (where applicable). Send payments and subscriber information to : G.M Circulation, The Herald P.O.Box 3740, Karachi, Pakistan We also accept payments through American Express, Visa or Master Card. Allow 45 days for first issue.

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EDITORIALS & FEATURES

961011 ------------------------------------------------------------------- The partys over ------------------------------------------------------------------- Ardeshir Cowasjee WHEN our government says it will not devalue the rupee, it does so the next day. When it proclaims that the executive and the judiciary are the best of friends, we know they are not. When it declares that the army is not concerned with the health and welfare of the people, the army indeed is. When it maintains there is no rift between prime minister and president, it means there is a raging conflict. So, when it tells us that the President has no intention of dissolving the assemblies, it may well be that the man is contemplating doing just that. The robbed, depressed people of Pakistan do not deserve the government they have, voted in through a pre-planned free and fair election. In no way do they deserve headlines over editorials in the foreign Press such as: Pitiable Pakistan (The Wall Street Journal); Her own worst enemy  The Bhutto clan has mortgaged Pakistans future (The Times). Nor the contents: * If these trends [seemingly unstoppable descent into political and cultural bankruptcy] cannot be reversed soon all Pakistan may have left is its own fate as a grim warning to others. * In Benazirs case, arrogance of pharaonic proportions is leading her to political doom. Faced with a temporarily united opposition, reluctant IMF lenders and assessments at home and abroad putting Pakistan at the top of the worlds most corrupt nations lists, any other leader would be trying to mend her ways. Instead, Ms Bhutto continues to blame everyone but herself for Pakistans woes. * Miss Bhutto blames everyone but herself... President Farooq Leghari has finally lost patience  above all with the corruption that underpins feudal privileges. He demands the creation of a special judicial panel to investigate corruption charges against politicians and officials. Miss Bhutto who recently appointed her much-suspected husband Investment Minister  a job which is singularly open to corrupt inducements  retorts that nothing of the kind is needed. When she was in the US, we were overshadowed. Top-most in the minds at Washington and at New York were events in the Middle East. During her visit, 190 finance ministers and governors of central banks, and some 10,000 bankers had gathered in Washington for the annual meeting of the World Bank and IMF. Pakistan, when spoken of, was bracketed with Nigeria, Kenya and Zaire  the four most corrupt countries of the world. What was said, Benazir could not have heard. The lenders say that Pakistan needs a full-time finance minister, an able man of finance capable of enforcing his will on the spendings of president, prime minister, government, parliament and administration. Those advising are unaware that no man of finance worth his salt in this country would dream of taking the job, as he knows he could make no headway in dealing with a government totally lacking credibility, moral authority, and the will to reform. The most important issue talked about in Washington was our rampant corruption. Those that know Pakistan know well that it is cronies, manipulators, money-makers, the shameless and the spineless, who are hand- picked to head the state financial institutions, banks, corporations and trusts. They know that nepotism and cronyism have reached Marcosian levels, that the Prime Ministers bonzes selected and assigned an individual with faked academic qualifications to head perhaps the largest state-owned enterprise. This was done after establishing that the man would deliver and on the basis of an annual confidential report (ACR) written by the chairman (an honourable civil servant) of a corporation from which he had been moved for inefficiency. He was rated below average in leadership quality, intellectual integrity and sense of responsibility in financial matters. Mentioned specifically was the fact that the man and his performance must be watched closely as he gives preference to personal benefit rather than to the interest of the organisation, and that he does not hesitate to make incorrect statements for his own furtherance. The men in America also know that units of the National Investment Trust (the largest and only open-ended mutual fund of the country) worth billions of rupees, held by foreign banks, financial institutions and pension funds, were recently liquidated. On one day alone, in one go, almost Rs 1 billions worth went. Thereafter, NITs government-appointed chairman and managing director, Asadullah Shaikh, a former home secretary of Sindh and not a finance man, was removed and replaced. By advertising on September 25 in Dawn that it is now under professional management, NIT has tacitly admitted that prior thereto the organisation was being run by non- professionals. The gate was closed after the horse had bolted. This naturally raised a laugh in international finance circles. In my open letter to Imran Khan (column of September 22) I advocated that Imran concentrate on trying to lessen governmental robbing and on encouraging transparency. That large bleeding sore, Pakistan Steel Mill, was cited as a good spot from where to take off. On October 7 in the letters columns of this newspaper, Advocates Dastgir & Co, responded on behalf of the mill and its Chairman, Usman Farooqui  with particular reference to a letter written this July 17 to the Minister of Industries and Production by the Prime Ministers adviser Vasim Jafarey to which I had referred. Vasim had covered the financial deterioration of the mill over the past year, the last seven months of which it had been under Farooquis charge. Dastgir & Co denied nothing cited by Vasim, i.e. declining production, massive build-up of stocks, declining sales, dwindling of cash balances, concealment of the grim state of affairs by a false and frivolous advertising campaign (costing Rs 3 crores), demand by the mill of a subsidy of Rs 1 billion to keep going. This was the first time that a subsidy had been asked for. The advocates say that Farooqui spent Rs 6.264 billion (Rs 626.4 crores) in seven months on renovations and repairs. Nobody disputes anybodys ability to fritter away public funds. We just question who or what benefited? On May 11, 1996, two months before Vasim wrote, five senior directors of the Mill  Baqar Rizvi, Raza Ali, G.H. Memon, Azizullah Khan, and Haroon Khan wrote to K.B. Rind, Joint Secretary of the Ministry, referring to their meeting with the minister and sending therewith a 130-page indictment of the rampant and galloping corruption let loose and the myriad irregularities, both financial and administrative, being perpetrated by Usman Farooqui. They implored the minister to immediately intervene and save the mill from an impending disastrous end. They knew that they were attacking a protected species, but apparently were so desperate that they risked writing what they did. Result: they were OSDeed; Farooqui stays to spend, and, following the example of his patron, challenges anyone to come forward in the court of law... Now for the title of this column. We go back to 1977. At the very beginning of July, the American ambassador in Islamabad rang his consul-general at Karachi: Relax, he said, the partys over. The bugged message was repeated to Prime Minister Zulfikar Ali Bhutto, who in those frenetic days was wont to make almost daily boastful speeches. He told the people. There are some who say the partys over. Well its not. Its just beginning. I will rule for a hundred years. At the American celebrations on the 4th of July, Bhutto, surrounded by a group of acolytes, repeated his words, and laughed. They laughed with him, unctuously assuring him, Bilkool, bilkool. One of them was army chief, General Zia-ul-Haq, hands decorously folded over his lower belly, bowing respectfully. Later that night, Zia deposed Bhutto, arrested him, and took over what was left of Pakistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961014 ------------------------------------------------------------------- The self-respect of a bankrupt country ------------------------------------------------------------------- By Ayaz Amir OF all the wonders in this star-struck land of ours none is greater than the skill with which we have placed our fortunes at the altar of the International Monetary Fund. If you think closely about the matter, it boggles the mind. For a paltry 80 million dollars  which is what, with longing eyes, we now expect from the coffers of the Fund  we have bound ourselves into a servitude against which a colony would rebel. The blame for this state of affairs does not rest on the shoulders of the IMF. Since beggars cannot be choosers, and since economic decision-making in the Republic has been reduced to currying favour with the IMF, we are forced to accept its conditions, however harsh or unconscionable they may be. But these conditions are humiliating all the same. That budgetary guidelines should be set in accordance with the wishes of the IMF is bad enough. But that it should take the strictures of the Fund to tell us about the necessity of a tax on agriculture reveals the depths to which we as a putatively self- respecting nation have sunk. The essence of sovereignty does not consist in beating the drums of Islamic rhetoric. Nor in settling the fate of Afghanistan. It lies in making economic decisions subservient to our own requirements. But if it is the Fund which has to admonish us about our prodigal ways and thrust bitter medicine down our throats, what will we be celebrating when the 50th anniversary of our independence rolls around? Will the conference centre being raised in Islamabad by the government (at what criminal expense we all know) be a monument to our pride or our shame? Whether IMF guidelines are good or bad is not at issue. In some countries their adoption has led to economic recovery. In others it has caused widespread social dislocation. The point is that through neglect and short- sightedness we have allowed the imposition of an economic dictatorship whose consequences, good or bad, is not in our power to control. If the prescriptions of the IMF lead to further inflation, a fall in the value of our currency or the starving of the social sectors we have no one to blame except ourselves because it is we who have abdicated our economic sovereignty. Every cash-strapped government goes to the IMF with a begging bowl in its hands, gets a few crumbs and returns with crippling conditions which add to the woes of the Pakistani people. The pains of the moment are eased while the future is further mortgaged. The wisdom to be seen in this course is not much different from the plight of a cash-starved individual like myself. When I use my credit card it is great fun getting money from the bank just like that. But when at the end of the month I receive my statement of account I feel like kicking myself in the shins. Loans make sense for enterprising individuals who can turn a profit on the money they get. Not for individuals like me or entities like the Pakistani state which finance their lifestyles through extravagant borrowing. I have decided not to use my credit card except for the direst emergencies as, for example, a trip to Bangkok. The predicament of the Pakistani state is infinitely more serious. It would not survive were it not to use its credit card. The problem is that after years of rich living its credit card is no longer being honoured. Hence the grave warnings of impending economic doom. While all governments have contributed to this mess, the great contribution of the Bhutto government is that it has brought the day of reckoning closer. It has not brought speed to the process of development but injected velocity into the slide towards bankruptcy. What other governments could not achieve in ten years, it has done so in three. The positive side of its contribution lies in the fact that it has finally made the nation, or at least its masters, sit up and take note of the trail of wreckage which defines our path to the sun. Through its inadequacies and its almost surreal capacity to mismanage everything, the government is also presiding over a subtle but sure shift in the equilibrium of the Constitution, with power slowly moving in the direction of the presidency. The President is getting involved in decisions that a competent executive would never have surrendered. What has the President to do with an inter-governmental conference called to look into the merits of an agricultural tax? But with her position weakened by quixotic adventures, the Prime Minister has left herself with no choice except to go along with a more assertive Presidency, a process that can only gather strength as the shadows lengthen over what arguably is the most grimly incompetent government in the nations history. And yet despite the clear dangers it faces, the government is still going to be around to amuse and torment the Pakistani people. It may have lost the ability to govern but it is not going anywhere in a hurry. The overriding lesson of the last ten years of political turbulence is clear: it is easy to break a government (after all, it takes but a short proclamation to bring this about) but it is less easy to manage the consequences. The irony of this situation is worth noting. Time was when the Pakistani nation invested its faith in the holding of elections, firm in the belief that more democracy was a cure for the ills of democracy. Today the same prospect causes nightmares because of the fear that an election would return the same class if not the same faces to power. More than anything else this wary mood is proving Benazir Bhuttos best defence against the threat of an immediate dismissal. But by the same token Pakistan has been left prematurely with a lame-duck administration, unable to govern effectively and helpless before the sharp winds that have begun to blow from the presidency. Theoretically speaking, the government can still take matters into its own hands but only if it were to begin cleaning its own stables. How is that possible? If the Prime Minister were to begin purging the corrupt, her government and secretariat would be littered with corpses. The problem with this dispensation is not where to end the accountability of the corrupt but from where to begin. Even if Hercules is willing, where does he begin his labours? The tragedy is that all of this could so easily have been foretold. When Benazir Bhutto swept into the Prime Ministers house in 1993 she was not an unknown commodity, having amply displayed her talents during her first term. All that she has done since is to prove true to herself and to demonstrate that she is incapable of learning anything. Even the President who is now blowing hot and cold and turning himself into a reforming angel cannot plead ignorance because if anyone had a chance to watch Ms Bhuttos progress  first when she led the PPP, later as head of government  it was him. Can he honestly bring himself to say that Benazirs handling of party affairs or her first stint as prime minister inspired him with any confidence about her abilities? It is not only that she is reaping what she had sowed. The nation too is reaping what it had sowed because Benazir Bhutto was not imposed upon it but placed in her present position by a combination of three factors: her vote bank, the alliance with the PML-J and the solo flight of Qazi Hussain Ahmed who is now thundering the most against something in whose creation he had an indirect hand. If the right- wing remains intact, the PPP can never come to power. It is the splintering of the right which has always paved the way for the PPPs victories. This nations special tragedy is that it is always trying to undo the consequences of past disasters. Heaven alone knows when this process will end but only when it does will Pakistan have a chance to free itself from the clammy touch of distant gods and take its future into its own hands. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961013 ------------------------------------------------------------------- An earthquake of rumours ------------------------------------------------------------------- Omar Kureishi I must return to my favourite story of the Irishman who came upon two brawling groups. He watched for a while and then, unwilling to be an idle spectator, inquired: Is this a private fight or can anyone join in? In the present political free-for- all, apparently, anyone can join in. Having been struck by an earthquake of rumours that had the government packed off, the assemblies dissolved, an in-house change, imported caretaker prime minister appointed, an interim government of technocrats installed, to list only a few of the rumours, the reality that none of these happened should have restored an ante-bellum status quo. But tremors continue to be felt and newspapers continue to convey the uncertainty borne of the something-is-about-to-happen fixation. Its like watching a washing machine churning up the dirty linen. In all this frenetic political exercise, it is to be noted that the people of this country have no role to play, there is no reference to them, to those who cast their votes and who, in theory, should have a decisive say. After all those who sit in assemblies do so as representatives of these people and, again in theory, are answerable to them. Thus we extol the virtues of democracy while uprooting its source, not too dissimilar to the US Commander in Vietnam who said that he had to destroy a town in order to save it. Refusal to learn from experience is a part of our national character because we continue to make the same mistakes over and over again. This is what I wrote in early 1988 and who can say that it does not apply to the present day: Over the years, the country has been conditioned to expect the worst. We have been told of anti-state elements, of hidden hands, of internal enemies, of foreign plots. Every vested-interest group, for its own aggrandisement, has propagated a conspiracy theory. So much that we have felt ourselves to be under siege, we have become paranoic and have started believing every doomsday scenario. Let us take the worst case scenario for this government. That it is sent packing. Why should the succeeding government assume that it too wont be sent packing? Its happened in the past. It will happen in the future. The same sound and fury with which the present government is being denounced will be there for the next one. Is this to be a pattern of our national lives? Thats what I mean by our refusal to learn from experience. Both this government and the opposition are products of a democratic political system. They owe their existence to this dispensation. One would have thought that it would have been in their own highest interests to safeguard and strengthen the system. Processions, rallies, public meetings are a part and parcel of the democratic order, at least, in our part of the world. So too is criticism. But street agitation that turns violent, an attempt to topple a government through this method sets unhealthy precedents. We must stay within the rules and the real battle- field should be the National Assembly. That is where a government should be confronted and thats where a government must defend itself. The pity has been that it is the very members of these assemblies who have devalued them. That the conduct of these elected representatives leaves a good deal to be desired is another matter though in the perception of the public, it does nothing to enhance the prestige of these assemblies. If there has to be a change of government it must be peaceful and constitutional and this ideally means that a government should be allowed to complete its mandated term and then must go back to the people to be re- appointed or rejected. That would be setting a healthy precedent. And there is a second matter where we have not learnt from experience. When in June 1988, the National Assembly was dissolved and the cabinet sacked, this is what I wrote: There is a tendency to gloat over the predicament (and embarrassment) of fallen heroes. There is something perverse in human nature that the very people who basked in reflected glory and wallowed in shameless adulation, who were the main beneficiaries of favour and privileges are the first to ridicule and mock the changed status of their former lords and masters. About the MNAs and MPAs I wrote that except for the most personal reasons, not a tear has been shed by the people. Why? Because these MNAs and MPAs (partyless as they were in the beginning) were seen as rank opportunists by the people with whom they had no rapport or dialogue. They seemed to represent themselves and nobody else. In other democracies you can look to your member of parliament to help with your problems. At least, you can hold him accountable because he is supposed to be your representative. And for good measure, I added that to be a representative of the people, you have to be one of them. Not above them. I mention this because it has been this cavalier attitude that has actually weakened the assemblies for its members have lost the support of those who elected them. I was discussing the present political scene with a friend and he is not half as cynical as I am. He was of the opinion that when the chips were down, neither side could count on the loyalty of their MNAs or MPAs. I told him that a 17th century jurist John Seldom had put it thus: Take a straw and throw it up into the air, you shall see by that which way the wind. He thought that a bit too intellectual but said that was more or less what he meant. The real tragedy is that this seemingly permanent political confrontation has not allowed the real agenda to be addressed. Which is why, after nearly 50 years, half our population does not have access to safe drinking water and the literacy rate, instead of going up, has actually declined. When we complain about the apathy of the people, we fail to take into consideration that politics is seen to be irrelevant in the lives of most people. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961012 ------------------------------------------------------------------- India, Pakistan: a comparison ------------------------------------------------------------------- Dr Ishrat Husain INDIA and Pakistan are completing five decades of their independence. Since the partition, the relationship between the two countries has been uneasy and characterised by a set of paradoxes. There is a mixture of love and hate, a tinge of envy and admiration, bouts of paranoia and longing for co- operation, and a fierce rivalry but a sense of proximity, too. The heavy emotional overtones have made it difficult to sift facts from myths and make an objective assessment. There are in fact only two extreme types of reactions on each side. Either there are those who always find that the grass is greener on the other side of the pasture or those who are totally dismissive of the accomplishments of the other side. This article attempts to present an objective, empirically- based and balanced view of the economic achievements and failures of both the countries during the span of the last five decades. The strict comparison becomes somewhat problematic because of the separation of East from West Pakistan in 1971 but, the analysis and conclusions drawn by and large remain valid. First, the common successes shared by both the countries: Despite the prophets of gloom and doom on both sides of the fence, both India and Pakistan have succeeded in more than doubling their per capita incomes. This is a remarkable feat considering that the population has increased fourfold in case of Pakistan and threefold in India. Leaving aside the countries in East Asia and China, very few large countries have been able to reach this milestone. The incidence of poverty (defined as $1 per day) has also been reduced significantly although the number of absolute poor remains astoundingly high. However, the level of poverty is lower in Pakistan. Food production has not only kept pace with the rise in population but has surpassed it. Both countries, leaving aside annual fluctuations due to weather conditions, are self- sufficient in food. (Pakistan exports its surplus rice but imports small volumes of wheat). Food self-sufficiency has been accompanied by improved nutritional status. Daily caloric and protein intake per capita has risen by almost one-third but malnourishment among children is still high. The cracks in the dualistic nature of the economy  a well- developed modern sector and a backward traditional sector  are appearing fast in both the countries. A buoyant middle class is emerging. The use of modern inputs and mechanisation of agriculture has been a levelling influence in this direction. But public policies have not always been consistent or supportive. Second, the common failures of the two countries: The relatively inward- looking economic policies and high protection to domestic industry did not allow them to reap the benefits of integration with the fast-expanding and much larger world economy. This has changed particularly since 1991 but the control mind-set of the politicians and the bureaucrats has not changed. The centrally planned allocation of resources and licence raj has given rise to an inefficient private sector that thrives more on contracts, bribes, loans from public financial institutions, lobbying, tax evasion and rent-seeking rather than on competitive behaviour. Unless both the control mind-set of the government and the parasitic behaviour of the private industrial entrepreneurs do not change drastically, the potential of an efficient economy would he hard to achieve. This can be accomplished by promoting domestic and international competition, reducing tariff and non- tariff barriers and removing constraints to entry for newcomers. The weaknesses in governance in the legal and judicial system, poor enforcement of private property rights and contracts, preponderance of discretionary government rules and regulations and lack of transparency in decision making act as brakes on broad-based participation and sharing of benefits by the majority of the population. In terms of fiscal management, the record of both the countries is less than stellar. Higher fiscal deficits averaging 7-8 per cent of GDP have persisted for fairly long periods of time and crowded out private capital formation through large domestic borrowing. Defence expenditures and internal debt servicing continue to pre-empt large proportion of tax revenues with adverse consequences for maintenance and expansion of physical infrastructure, basic social services and other essential services that only the government can provide. The congested urban services such as water, electricity, transport in both countries are a potential source of social upheaval. The state of financial sector in both countries is plagued with serious ills. The nationalisation of commercial banking services, the neglect of credit quality in allocation decisions, lack of competition and inadequate prudential regulations and supervision have put the system under severe pressure and increased the share of non-performing assets in the banks portfolio. The financial intermediation role in mobilising and efficiently allocating domestic savings has been seriously compromised and the banking system is fragile. Both countries are now taking steps to liberalise the financial sector and open it up to competition from foreign banks as well as private banks. Third, the areas where India has surpassed Pakistan: There is little doubt that the scientific and technological manpower and research and development institutions in India are far superior and can match those of the Western institutions. The real breakthrough in the Indian export of software after the opening up of the economy in 1991 attests to the validity of the proposition that human capital formation accompanied by market- friendly economic policies can lift the developing countries out of low-level equilibrium trap. Indian scientists working in India excel in the areas of defence technology, space research, electronics, genetics, telecommunications, etc. The number of Ph.Ds produced by India in science and engineering every year  about 5,000  is higher than the entire stock of Ph.Ds in Pakistan. The premier research institutions in Pakistan started about the same time as India have become hotbed of internal bickerings and rivalries rather than generator of ideas, processes and products. Related to this superior performance in the field of scientific research and technological development is the better record of investment in education by India. The adult literacy rate, female literacy rate, gross enrolment rations at all levels, and education index of India have moved way ahead of Pakistan. Rapid decline in total fertility rates in India has reduced population growth rate to 1.8 per cent compared to 3.0 per cent in Pakistan. Health access to the population and infant mortality rates are also better in India and thus the overall picture of social indicators, although not very impressive by international standards, emerges more favourable. The two most important determinants of Pakistans dismal performance in social development are its inability to control population growth and the lack of willingness to educate girls in the rural areas. Fourth, the areas where Pakistan has performed better than India: The economic growth rate of Pakistan has been consistently higher than in India. Starting from almost the same level or slightly lower level in 1947, Pakistans per capita income today in US nominal dollar terms is one-third higher (430 versus 320) and in purchasing parity dollar terms is two-thirds higher (2,310 versus 1,280). The latter suggests that the average Pakistani has enjoyed better living standards and consumption levels in the past but the gap may be narrowing since early 1990s. Had the population growth rate in Pakistan been slower and equalled that of India, this gap would have been much wider and the per capita income in Pakistan today would have been twice as high and the incidence of poverty further down. Although both India and Pakistan have pursued inward-looking strategies, the anti-export bias in case of Pakistan has been comparably lower and the integration with the world market faster. The trade-GDP ratio in PPP terms is twice that of all South Asian countries. Pakistans export growth has been stronger and the composition of exports has shifted from primary to manufactured goods. However, the dominance of cotton-based products has enhanced its vulnerability. Domestic investment rates in Pakistan have remained much below those of India over the entire span primarily because of the relatively higher domestic savings rates in the latter. But the efficiency of investment as measured by the aggregate incremental capital-output ratio or total factor productivity has been higher in case of Pakistan and, to some extent, compensated the lower quantity of investment. What is the bottom line then? The overall record looks mixed. Pakistan scores high on income and consumption growth, poverty reduction and integration with the world economy. India has done very well in developing its human resource base and excelled in the field of science and technology. Both countries face a set of common problems  the inherited legacy of a control mind-set among the government and rent-seeking private sector, widespread corruption, poor fiscal management, weak financial system and congested and overcrowded urban services. But there is an important and perceptible positive shift in most of the indicators of India since 1991. Export growth rates have almost doubled, GDP growth is averaging 6 to 7 per cent in recent years, current account deficit is down and foreign capital flows for investment have risen several fold. The edge that Pakistan had gained over India in most of these indicators until 1990 is fast eroding. Pakistan, on the other had, has made greater progress in privatisation of state-owned enterprises and in attracting foreign investors to expand power generating capacity in the country. How does the future look like? Since 1991, both India and Pakistan have embarked on a policy of liberalisation, outward orientation and faster integration with the global economy. The initial responses have been very positive. As outlined earlier, portfolio and foreign direct investment flows in the last few years have surpassed the total over the earlier 20-25 years. Indian exports recorded an increase of 50 per cent since 1991 while Pakistan, despite a setback due to failure of successive cotton crops, have expanded by two-thirds since 1990. The political uncertainty in India has been minimised after the elections earlier this year and adoption by the coalition government of the Congress agenda on economic reforms. This combination of political stability, economic policy credibility and well-developed human resource base places India at an advantage today. But there is no earthly reason why we in Pakistan cannot put our house in order, strike a consensus among the two major political parties on the contours of our economic policy direction, stop internal bickering and turmoil for the sake of the countrys larger interests and avoid promoting contrived and perceived sense of economic instability. The imperatives of globalisation and integration with the world economy dictate that the countries that are not agile and do not seize the opportunities at the right time are likely to be losers. What is encouraging is that the economic policy stance of both major parties in Pakistan is identical, i.e. liberalisation of the economy. We have made a head start and let us not lose this momentum by narrow-minded and purely self-serving interests. The destiny of a nation depends upon the hard work, discipline and internal cohesion of its people and the vision of its leaders. Let our future generations not blame our leaders for failing to leave a legacy of prosperity and hope for them. (The author is the Director, Poverty and Social Policy Department, at the World Bank. The views expressed in this article are his own and do not represent the views of the Bank.) DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961013 ------------------------------------------------------------------- Wanted: a pair of clean hands ------------------------------------------------------------------- Mohammad Malick ISLAMABAD: The lean and lanky senator-daughter of former prime minister, late Mohammad Khan Junejo, is not in the habit of shooting off speeches. But when she did speak on Saturday on the subject of accountability, the advantage of inheriting a clean legacy could not become more pronounced. Standing tall in a political arena full of dwarfs, when it comes to measuring heights with the yardstick of honesty, Fiza Junejo wondered aloud about the causes preventing the government from expelling the corrupt from its own ranks and nabbing those outside, if its own hands were clean, as the government claimed. She reminded the house that her father had sacked three ministers on the charge of unbecoming conduct, sending a clear message that the Junejo government would not accept corruption, or the corrupt. What Fiza Junejo said made a lot of sense but it was quiet apparent that she was addressing the wrong audience. She found that out minutes later when Sen Gulzar lost his cool and let Sen Tariq Chaudry have it when the latter reminded the chairman about his secretariats slumber over a reference filed by him. Though he did not name any names at that juncture but who would know better than Sen Gulzar. The reference has been moved to seek Gulzars disqualification on the ground of his alleged bribery attempts during his bid to get elected as the Senate chairman. Sen Tariq has charged in the reference that the Sen Gulzar offered as much as Rs10 million each to senators for electing him. Another senator, Fazal Agha, had also charged on the floor of the house speech that he had been offered that bribe directly by the senator. An angry Gulzar shot up from his seat and started abusing the smiling Sen Tariq, calling him Do takay kaa aadmi among other things and shouting that he could buy his obedience by just throwing ten thousand rupees at this man. A visibly angry but cool Tariq Chaudry just kept a smile pasted to his face and got deeper under the fuming senators skin by adding: I did not take any names apparently its a case of Chor ki darhi may tinka. The other event of the day actually happened to be the non-event of the day when for some strange reason the opposition overtaken by a strange feeling of harmony and mutual co-operation allowed its tabled bill on the establishment of an accountability commission to be sent to a committee. Only two days earlier in the national assembly, the opposition had fought the government tooth and nail to force the turning of the entire house into a committee to debate the bill. As expected it lost in the vote count but it still managed to paint the government as being accountability shy. Now when it had an opportunity to force an immediate debate in the opposition dominated house, someone moved the ends. One wonders if either of the sides is really sincere in its proclaimed desire to curb corruption. May be Sen Khalil-ur-Rehman had been right in questioning the presence, or absence, of the required will to eradicate corruption. In an earlier speech, the senator defined the lack of accountability as the single biggest contributing factor to the countrys growing social and economic problems. Accountability, in his view, was the embodiment of a democratic system. He made an interesting differentiation when he said, democracy refers to how power is acquired and retained while the Constitution refers to how power is granted, dispersed and limited and all governments, therefore, have constitutions in the sense of agreed upon ways of conducting their business. The he went on to identify the problem as being a interpretation of the constitution by the governments. The governments need to be handcuffed, hemmed in and rendered harmless. He said: Cant we think for ourselves that we need the president to tell us what to do, how to think and yet we claim ourselves to be the supreme sovereign body. Do we deserve this title. But before he went in for a ruthless self analysis of the political body he turned his guns on the system that had been corrupted to the point where the judiciary and parliament had been turned subservient to the executive by corrupt and colluding politicians and the establishment. He said: This political Mafia gave us a Constitution which is a monster which creates not democratic prime ministers but dictators. Where else is a prime minister elected as in Pakistan, starting horse-trading from the first day of the parliaments existence. Could the senator be hinting about some basic changes in the system that may be desired by certain quarters.

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SPORTS

961011 ------------------------------------------------------------------- How much cricket should we really play? ------------------------------------------------------------------- THE former president of the Indian Cricket Board, Mr Inderjit Singh Bindra, appears to have said farewell to good sense because, as the good old Capt Saeed used to say, if he (Mr Bindra) knows anything about the game, I am Charlies aunt. He told reporters last week: If golfers and tennis stars can play all through the year, so can our cricketers. Hence the need to plan a non-stop circuit on the lines of golf and tennis to keep cricketers busy the year round. The advantages? More money for the players and the board which can be used to promote junior cricket in India. It is a concept that is bound to catch on in the rest of the world, said Mr Bindra. I hope not. Not in Pakistan at any rate. The Indian cricket season will begin in September and end in June instead of May as at present. September, October, April, May and June can be extremely hot in India as indeed in the rest of the sub-continent. Asking cricketers to play in these months would amount to cruelty to animals. Cricket in the sub-continent should be played only during November-March. Five months in a year should be more than enough. Even these months can be quite enervating in Karachi, Calcutta, Bombay (I refuse to call it Mumbai) and Madras. Winter in these port cities is anything but wintry. Now have a look at the Indian cricketers engagements in the coming months. The Australians are already in India for a one-off Test match which was due to begin on Thursday. Then lines got into print South Africa are due to take part in a triangular one-day tournament which is to last till November 6. The Australians then go home but South Africa stay on to play a three-Test match series which ends on December 14. Then the Indians leave for South Africa to play three more Test matches and take part in yet another triangular, the third side being Zimbabwe. This will keep India busy up to mid-February next year when they leave for the West Indies for a five-Test series. The tour will end on May 3. The same month, India will organise a one-day tournament as part of the celebration marking its 50th independence day anniversary. In August- September, India will visit Sri Lanka to play two Test matches. Towards the end of September, India will begin a five-match one-day series against Pakistan in Canada to be followed by the first-ever one-day triangular in the US. Apart from India and Pakistan, the West Indies will complete the frame. This is not all. New Zealand and Sri Lanka visit India from October to December for Test matches and one-day series and then the Australians will arrive for a three-Test series. This means 23 Test matches and a minimum of 20 one-days. This is too much. But Mr Bindra dismisses all criticism about the gruelling schedule which is bound to tell on the players health. Professional cricketers have to adjust to and pace themselves like other sportsmen, he says. I am sure Mr Bindra cannot bowl a single six-ball over at 150 kilometres to the hour and that he cannot but through the day in a Test match or hit 60- odd runs in the slog overs of a one-day game. We can all make demands on the time and health of our cricketers from the comfort of our armchairs because we do not have to be out there in the middle under a cruel sun. Yes, the sun can be quite cruel in Lahore even in December, especially between lunch and tea. I am of the view that if we continue to play one-day matches at the rate we are going, even they will lose public interest, especially if the two sides are not evenly matched. No disrespect is intended here, but how many people in Pakistan will pay to watch a one-day game against Kenya, Holland or Zimbabwe? Again, to compare tennis and golf, especially the latter, with cricket is insane. Apart from the games which go into four or five sets, how long does it take for a tennis match to be over? And as for golf, even 70-year olds can play it comfortably. Pakistans own schedule has been rather heavy. After an England tour to Toronto to Nairobi. Look at the vast distances and the amount of travel involved. And do the cricketers have no families? No parents, no wives, no children? I think Pakistan at least should ration out the one-days and Test matches judiciously. There should be a suitable interval between engagements. We already have two vital members of the side on the injured list  Inzimamul Haq and Mushtaq Ahmed have had knee operations and Aamer Sohail is also not in the pink of health or the peak of his form. What happens if, God forbid, one of our key fast bowlers Wasim or Waqar Yunus breaks down? I think the ICC should take up the issue. Too many matches will kill the game and send several star performers into early retirement. The way we are going, we are bound to kill the goose that lays the golden egg. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961012 ------------------------------------------------------------------- Kenya trophy missed despite Afridis splendid show ------------------------------------------------------------------- Lateef Jafri South Africa displayed their resources in Kenya in a confident vein to clinch the honours of the four-nation tournament despite facing hurdles against the world champions, Sri Lanka, always a balanced side, in the middle of the competition. Could Pakistan have done better than finishing second in a cricket contest, organised for the first time by Kenya with three internationally-recognised contestants, ask the games followers? No, say the keen observers of cricket. They point to the depletion in the squad due to the withdrawals of key performers viz Mushtaq Ahmad, Inzamamul Haq, Aamir Sohail and latterly the return of the leader and guide Wasim Akram, due to unfortunate injuries, illness and other reasons. However, the selectors too did not engage themselves in serious paper-work and discovered for the team replacements who were either out of form or not yet ready for tough challenges at the international level (leaving aside the young phenomenon, Shahid Afridi). One may ask the selectorial panel why the demand of coach and cricket manager, Mushtaq Mohammad, for Rashid Latif and Aqib Javed was spurned? The gaps in the outfit may have been filled to some extent and at least Aqib may have adapted to the conditions in Nairobi directing fast- medium swingers, hardly losing the essential principle of bowling  the length. Zahid, the choice of the officials to appear in place of the fearsome Wasim, reported unfit on arrival in the Kenyan capital. As coach Mushtaq said he had shoulder injury and could not have been fielded for the specific purpose of bowling. Then cricket followers just regret the overall performance and show of Ramiz Raja  cipher against Kenya, 7 against Sri Lanka and 3 in the final against South Africa. What was the logic behind the selection of Ramiz and Zahid? The chief selector in one of his interviews has tried to defend the last- minute inclusion of Saeed Azad by saying that he was the highest run-getter last season. The records, on the contrary, show Sohail Jaffar on top of the ladder, with Asif Mujtaba, Mohammad Nawaz and Azam Khan taking second, third and fourth slots in the batting aggregate. His experiment too cannot be called a success, considering that only in the final he made 31, otherwise in the two earlier engagements his contributions were 14 and 1. (The selectors have continued with their experiments and a policy of encouraging young talent. The team for the Sahiwal side match shows that the call-up of new faces is in accord with the order of averages or the haul of wickets and the total collection of runs last year). (However, the choice of Mohammad Zahid appears risky as it is not known if he is in a fit condition; Ather Laiq (54 wickets last year) or Ali Gohar (47 victims) may have been preferred if the reliable and effective pace of Aqib Javed was still not to the selectors liking). (The alacrity of Rafaqat Ali after his lapses in the SAARC gold cup in Dhaka is to be taken as doubtful and again the fans may be surprised at the passing over of Rashid Latif, an aggressive batsman and a swift stumper). Coming to the Kenya quadrangular many are of the opinion that despite the convulsion suffered by the team in the competition opener it could have bagged the trophy after the blinding hitting displayed by teenager Shahid Afridi against Sri Lanka. Pakistan were underdogs against the world champions. Afridi, an unknown quantity as a batsman, cracked 11 sixes and six fours. He was a ruthless machine and the Sri Lankan bowling was cut to smithereens. Saeed Anwar, also a centurion in that match, was watchful at the other end. Afridi, a Karachi Islamia College student, exhibited his quick-silver footwork for the chivalrous drives that sent the onlookers crazy. Afridi not only set an individual record of the quickest one-day century but helped Pakistan pass their highest score of 338 in limited- overs international against Sri Lanka. Afridi was a real discovery. Try as they did Sri Lanka could not race to Pakistans huge # total with a run rate of over 7:00. They lost the match by 82 runs but failed to reach the final by the proverbial whisker. Pakistan should have won the final against South Africa, many cricket enthusiasts thought. Their tails were up. As in the whole tournament Pakistans form see-sawed, it was an all-round poor show in the final tussle against South Africa. Afridi could not repeat his batting performance; he scored only 14. The other batsmen failed to cope with the variegated attack of the South Africans in an assured way. The bowling was found wanting as the South Africans went in their confident manner to chase the modest Pakistan total of 203. Gary Kirsten was missed twice on his way to the century. Certainly Pakistan had little chance in the match. However, the bright spot was again the wile and guile in the leg breaks of Afridi, who just missed the hat-trick by a hairs breadth. The team missed the chance in Kenya. Another squad has arrived in the country. The new players, the young blood, are on test and trial. Some may join the mainstream squad if they excel in the matches against Zimbabwe; others may form a second line, waiting for future national service. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961013 ------------------------------------------------------------------- Zimbabwe want backing from ICC for cricket uplift ------------------------------------------------------------------- Special Representative SAHIWAL, Nov 12: Cricket minnows Zimbabwe urged the International Cricket Council (ICC) to extend full support to them so that they could come up to the level of other formidable sides of the world. I am very disappointed with the ICC because they have not supported the Zimbabwe cricket board. If they (ICC) had wanted, they could have helped us in many ways, the Zimbabwe skipper, Alister Campbell, told Dawn. The 24-year-old Campbell said the least the ICC could have done was to waive off the annual fee. I dont know what the exact amount is, but it is in pounds and that too a handsome one. Had the ICC made fee concession, the Zimbabwe cricket board could have invested that money on the home infrastructure. A few facilities could have been established. Campbell stated that in Zimbabwe, there were no good infrastructure as compared to countries like India, Pakistan, Australia or even England. There are hardly 25 cricketers in Zimbabwe who have the potential of making to the Test grade. On the contrary, Pakistan suffer an injury and they bring in a player like Shahid Khan Afridi who creates a world record. This shows the talent Pakistan has and it is only because they have a strong domestic cricket and proper facilities. If we get good infrastructure back home, cricket will be promoted and in a quick time, the tally of 25 players can be raised to 125. We have the talent but no proper facilities, Campbell said. Campbell was of the view that the ICC could have also helped Zimbabwes cause by giving them good cricket. Can you imagine, we have been in the ICC fold for about four years and have not played against Australia, England and the West Indies in Tests. After this series, we would have played 16 Tests and out of those 16, eight will be against Pakistan. It disturbs me as well as the cricket administrators back home, the left- hander said. Campbell called on for uniformity from the ICC on the allocation of Test matches. We want equality. If England plays three Tests against India, we should also get three Tests. Likewise, if Australia hosts Sri Lanka for three Tests, they should also invite us for three Tests. Not inviting us because we are not crowd-puller or our side cannot help the host teams generate more sponsorships, is injustice to us. Unless we dont get top grade cricket, how can we improve? The current team comprises the first generation of Zimbabwe cricketers. At least, I dont want to retire with only a couple of Test wins against my name. It is the dream of every cricketer to play at Lords. But we have been deprived of that honour because we have not been invited by England so far. David Houghton, our senior-most cricketer, will retire after the end of this season without playing there. Isnt it sad, Campbell questioned. Campbell expressed his disappointment when critics say they dont deserve Test status. It is very sickening when people jump on your back and say you dont deserve to play Test cricket. What the critics dont analyse is the difference between Zimbabwe and say Pakistan. Continuing his complaints against the ICC, Alister Campbell raised a valid point saying the games body should introduce sponsorships. The ICC should pick some cricketers from fast emerging countries and sponsor them to either the Australian Cricket Academy or the Plascon Cricket Academy in South Africa. This scheme will not only help the cause of countries like Zimbabwe, Kenya, Sri Lanka, Bangladesh etc., it will also bring in the element of competition amongst the teams. If the ICC can get sponsors for the umpires (National Grid), they can get the sponsors for say 30 teenagers to be divided into two groups, one going to Australia and the other to South Africa. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961013 ------------------------------------------------------------------- Nawaz Tiwana back as hockey president ------------------------------------------------------------------- Ilyas Beg LAHORE, Oct 12: Mr Muhammad Nawaz Tiwana was formally re-elected as President of Pakistan Hockey Federation during the 60th council meeting at the National Hockey Stadium on Saturday. During a Press briefing shortly after the meeting, the PHF secretary Col. Mudassar Asghar told newsmen that Mr Tiwana was not new to the game and had been President of the body for two years in early nineties. He said the members of the council reposed full confidence in him and hoped that Mr Tiwana would run the PHF in a professional manner and do everything for the promotion of the game. Col. Mudassar said that the 58th PHF council held at Lahore on April 25 this year had elected Mr Tiwana as the new president. However, at the 59th Council meeting in Karachi on May 18, Air Vice-Marshal Farooq Umar was asked to continue as president till the Olympic Games at Atlanta. He said AVM Farooq Umar had tendered his resignation to the PHF Council which was received a few days ago. After that the Council had to elect the new president. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 961014 ------------------------------------------------------------------- Show cause notice to Rashid Latif ------------------------------------------------------------------- Special Representative SAHIWAL, Oct 13: Discarded Test wicketkeeper Rashid Latif has been served with a show cause notice by the PCB Disciplinary Committee, headed by Shafqat Rana, well-placed sources said here on Sunday. Latif has been asked to explain why disciplinary action should not be taken against him after his latest outburst against Chief Selector, Salim Altaf, in a recent interview. Latif, dropped from the Canada and Kenya tours, was quoted by an Urdu daily as saying that Salim Altaf was taking revenge against him. It is a personal vendetta against me by Salim Altaf. He (Salim Altaf) couldnt do anything against me in South Africa in 1994-95 but now as he heads the Selection Committee, he is settling old scores, Latif was quoted as saying in the monthly Akhbar-i-Watan. Latifs attack has also come in the background of selectors refusal to accept the request of Canada and Kenya teams tour management who had repeatedly asked for Rashid Latif as one of the replacements. The Disciplinary Committee has asked Rashid Latif to explain his position by next week. Sources said if Latif failed to produce a satisfactory reply, the committee may penalise him in cash for breach of contract. It may be mentioned here that Salim Altaf was sent as an observer by the Ad hoc Committee of Javed Burki to South Africa in 1994-95 and was also assigned to investigate the infighting which was going on in the team. There, Rashid Latif had refused to talk to Salim Altaf saying since he (Salim Altaf) had no powers, it was useless to convey his problems to Altaf who then was a selector. Rashid Latif had demanded to talk only to Javed Burki (Chairman, Ad hoc Committee) or Arif Abbasi (member, Ad hoc Committee).

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