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DAWN WIRE SERVICE
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Week Ending : 22 August 1996 Issue : 02/34
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Nawaz presents documents in NA on Surrey mansion
No assurances Kashmir issue will be reinstated
12 die as rally fired upon
18 killed in attack on religious gathering
Blasts rip through NLC warehouse in Lahore
F-16 deal again in jeopardy
Pressler voted dumbest man in US senate
US paper attacks Benazir govt
UK forum doubts claim on investments
Addicts, not traffickers, held under drug laws
Police on job to pull crowd for PM
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Govt increases petroleum product prices
FIA arrests 12 UBL employees for fraud
Ninth Five-Year Plan envisages 8% GDP growth
Financial impact of energy policy
Discovering new Wealth Tax assessees
Dos and donts of sustainable development
Taxes on farm incomes, wealth to be raised
India proposes joint stand with Pakistan in WTO
Heavy covering purchases in PTC vouchers
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Karachi Port Trust-1 Ardeshir Cowasjee
Deja vu Mazdak
Is Nawaz Sharif really serious? Mohammad Malick
Who will clean the stables? Ayaz Amir
Surrey back with a vengeance Mohammad Malick
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Pakistan confident as final Test starts today
Majid terms Council decisions principled
India beat Pakistan to win Under-15 World Cup
Hanif wants new and strong hockey side to be raised
Pakistan win U-21 hockey thru golden goal
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960822
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Nawaz presents documents in NA on Surrey mansion
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Bureau Report
ISLAMABAD, Aug 21: Opposition Leader Mian Nawaz Sharif on Wednesday
presented documentary evidences in the National Assembly contradicting
repeated denials by Prime Minister Benazir Bhutto that she had purchased
any mansion in Surrey worth 2.5 million pound sterling.
The PML president reiterating his demand that the prime minister and her
spouse be disqualified as National Assembly members on the charges of
corruption gave complete background of the deal along with the details of
two separate consignments dispatched free of cost from Karachi to London
for the decoration of the Rockwood Estate.
He also produced complete record of the telephone calls made from the
Surrey mansion to Pakistan on different telephone numbers including a
mobile telephone number registered in the name of a company owned by Jawaid
Pashah who allegedly acted as a frontman in the deal. One of the telephones
Mr Sharif alleged was in the personal use of Mr Zardari.
The conduct of the prime minister and her spouse in the Surrey scandal
clearly contradicts both their oath of office as well as the Constitutional
requirements of their membership of the National Assembly under Article 25
and 26 of the constitution making them liable to disqualification from
membership of the National Assembly, he said.
He regretted that a reference earlier filed by him regarding the secret
purchase of 355 acres mansion was dismissed by the Speaker and was not
referred to the Election Commission for action and adjudication of the
questions raised in it.
He charged that the prime minister in a bid to cover up the deal not only
lied to the nation but also amassed the wealth through corruption and abuse
of office.
Giving a profile of the palace he said it was spread over 355 acres, which
is 10 times larger than Lahore Fort built by Moghuls measuring only a
little over 35 acres. It has an airstrip, an indoor swimming pool, nine
bedrooms, a magnificent reception hall, several sitting and dining rooms,
extensive farm land plus three other cottages and farm buildings.
Alluding to a story published in Washington Post he said the conduct of Ms
Bhutto had severely damaged Pakistans image abroad.
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960822
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No assurances Kashmir issue will be reinstated
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Masood Haider
UNITED NATIONS, Aug 21: The president of the United Nations Security
Council, Tono Eitel of Germany, said here on Wednesday that no assurances
were given to the Pakistani mission or its ambassador, that the Kashmir
issue will be reinstated on the UN agenda as being claimed by the Pakistan
foreign office. But, he added, that a review of the decision would take
place and it is not clear what will be the decision.
On July 30, the Security Council decided to drop 50 items from its agenda
of matters it is seized of, effective Sept 16, 1996, including Kashmir,
Palestine, Cyprus, and other issues.
Talking to Dawn Mr Eitel said, in fact the Pakistani ambassador did not
raise the Kashmir issue. He talked about procedural matters and the need to
review the decision.
Asked about the claim that the council meeting which decided to drop the
items was held secret and surreptitious, Eitel said the council meeting
was not a secret meeting. Everyone knew about it. Its not our fault that
the Pakistan mission did not follow the proceedings of the Council more
carefully, he observed.
He conceded that besides Pakistan, Arab and other states have raised
objections regarding the July 30 decision and it will be reviewed in view
of the objections raised by member states.
But he reasserted that several items which are in fact deadwood will
still remain deleted and the decision to reinstate will take its own due
course.
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960816
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12 die as rally fired upon
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Staff Reporter
KARACHI, Aug 13: Twelve people were killed and 10 others wounded when
unidentified armed men fired an Independence Day rally, organised by the
Sipah-i-Sahaba Pakistan, at Jamshed Road No. 2 on Wednesday afternoon.
On Thursday, the government announced a Rs2 million reward for anyone with
information leading to the killers arrest.
The people have been asked to contact the DIG, Karachi, or the SSP, East,
if they have any tips to offer. They have been assured that their identity
would be kept secret.
The Jamshed Quarters police have registered a case against four leaders of
the Tehrik-i-Jaffaria Pakistan and Sipah-i-Mohammadi, including provincial
TJP chief Allama Hassan Turabi. The three others are: Najmul Hussain, Zafar
Naqvi and Hassan Shah alias Shah.
Besides, several other unidentified attackers have been mentioned in the
same FIR. It was registered on the complaint of the SSP.
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960819
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18 killed in attack on religious gathering
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Dawn Report
VEHARI, Aug 18: Fifteen people were killed and 50 injured, ten of them
seriously, as a result of indiscriminate firing by half-a-dozen masked
assailants on a Majlis-i-Aza participants in Mauza Ghallu, some 45
kilometres from here, on Sunday evening.
Twelve people were killed on the spot, while three other died later at
Nishtar Hospital, Multan.
Three attackers also suffered bullet injuries in the cross-fire and died
before being taken away by their accomplices, eye-witnesses said.
The Majlis-i-Aza was being held at the residence of a former MPA and local
PML leader Irshad Ghallu.
Sipah-i-Muhammad Pakistan leader Syed Ghulam Reza Naqvi has held the Sipah-
i-Sahaba Pakistan responsible for the tragedy.
He said the SMP would not forget the incident and now no SSP programme
would be safe.
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960819
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Blasts rip through NLC warehouse in Lahore
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Intikhab Hanif and Nasir Jamal
LAHORE, Aug 18: Three powerful explosions blew up the entire concrete
structure of the army-controlled National Logistic Cell (NLC) warehouse
near Thoker Niaz Beg on Multan Road in the early hours of Sunday, causing a
big blaze in which several cars, electronics goods and auto spare-parts and
imported goods worth millions of rupees gutted.
The fire broke out following the explosions which took place in succession
around at 3 am. Thick clouds of smoke blanketed the area. The fire could
not be extinguished till late in the night. Fire fighters said the
combustible material would keep smouldering until everything under the
debris of the collapsed roof was gutted. It may take another two or three
days, a fire fighter said.
The incident was almost reminiscent of the fire which broke out at the
Lahore Dry Port in April, causing losses to importers amounting to several
hundred million rupees.
The police have not registered a case. We have been told by army officials
controlling the NLC warehouse that they will lodge a report after
completing investigation into the incident, a police official said. He
said it was not so far determined whether or not the incident was a result
of subversive action.
The cause of the explosions has not been ascertained so far. It is too
early to say anything right now, one customs official said.
NLC officials ruled out the possibility of combustible or chemical material
causing the blasts and fire as such things were stored separately away from
the warehouse for security reasons. There was plastic material inside the
warehouse but it could not have caused the explosions, they said.
NLC warehouse in charge Col Najamus Saqib said it was hard to immediately
determine the cause of the blasts because every clue is buried under the
debris. He said technical staff of the NLC would determine how the
explosions had occurred and the warehouse was blown up. I cannot say
whether or not it is the result of a terrorist act. Nor can I say these
have been caused by the bomb blasts, he said.
The explosions were accompanied by a deafening sound heard in a radius of
about five kilometres, creating a scare amongst residents of the nearby
localities. Many residents came out of their houses in panic, believing
that the explosions had taken place at the armys ordnance depot near the
Canal View Housing Society at Thoker Niaz Beg. I thought our locality had
become another Ojhri camp, said one resident who immediately after the
explosion drove to the site of the occurrence to see what had actually
happened.
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960822
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F-16 deal again in jeopardy
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Shaheen Sehbai
WASHINGTON, Aug 21: The political crackdown on the opposition in Indonesia
may cost Pakistan heavily as the Clinton administration is coming under
increasing pressure to cancel the deal for the sale of embargoed Pakistani
F-16 jet fighters to Jakarta.
Administration officials were initially not prepared to admit that the
political unrest may pose any threat to the deal for nine F-16s but now
congressional pressure has increased and the media has begun discussing the
merits of arming a regime which is bent upon persecuting democratic
dissenters.
Democratic Senator Patrick Leahy recently wrote to Secretary of State
Warren Christopher saying the F-16s should not be sold to Jakarta as the
regime was violating human and political rights.
Pakistani sources said if the deal with Indonesia was called off, there
would be almost no chance of the Pakistani F-16s ever getting disposed of
and Pakistan getting the money back, as agreed to by Prime Minister Benazir
Bhutto during her visit to the US in 1995.
Some Pakistani-American optimists, however, think that the failure of the
US to sell the planes may turn out to be a blessing for Pakistan as they
believe that once President Clinton won his re-election, he could be
persuaded to return the planes to Pakistan.
In the meantime, several US legislators are preparing to intervene in the
US-Indonesian deal, once Congress re- assembles after the summer recess.
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960819
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Pressler voted dumbest man in US senate
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Staff Correspondent
NEW YORK, Aug 18: Senator Larry Pressler, the author of the infamous
amendment which barred US aid to Pakistan, was voted the dumbest man in
the US Senate by his peers, both Republicans and Democrats.
But the bipartisan vote took place facetiously behind closed doors by his
peers who were amused by the bumbling senator, who now heads senates sub-
committee on commerce.
According to a report in New York Daily News, Senator Pressler gained
notoriety following a series of incidents where he was caught sleeping on
the job.
The news item says he (Pressler) once dozed off inside a closet, God knows
how, and missed a meeting. Another time as chairman of the commerce
committee, Pressler left a session of that body and mistook a closet door
for an exit. He waited in the closet, hoping everyone else would leave the
room, but his giggling colleagues decided to stand by.
Senator Pressler is contesting the Senate seat in South Dakota against
Democratic nominee, Tim Johnson.
Its a dead heat unless Pressler decides to sleep in yet another closet,
quipped a pollster.
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960821
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US paper attacks Benazir govt
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Staff Correspondent
WASHINGTON, Aug 20: The Washington Post on Monday devoted half a page to
the allegations of corruption against the Benazir Bhutto government.
The report said during her campaign to regain power, Ms Bhutto had made
corruption her biggest issue, repeatedly accusing Nawaz Sharif of financial
wrongdoing as prime minister.
Now, halfway through her five-year term, she finds herself on the receiving
end of corruption charges by Mr Sharif, the Post said.
Opposition leaders accuse Ms Bhutto and her husband, Asif Ali Zardari, of
collecting bribes and kickbacks on government contracts and siphoning the
proceeds abroad. The couple denies these charges forcefully. Besides, there
have been charges that Ms Bhutto has named to her cabinet several ministers
accused of financial crimes. They allege her government is also engaged in
a pattern of favouring political and personal associates in lucrative
business deals.
Ms Bhutto devoted an hour-long news conference in June to denying that she
and Mr Zardari had purchased a 335-acre estate in Surrey. In a newspaper
column published a week ago, she dismissed the corruption charges as
political propaganda of her opponents. My adversaries continue to make
totally unsubstantiated and wild charges of corruption against my party, my
government and my family, she wrote. It seems their manifesto is
mudslinging, and the truth is the first victim.
The controversy has contributed to Ms Bhuttos growing political problems
and the unpopularity of her coalition government. Business interests have
sharply attacked a $1 billion tax increase in her latest budget. Meanwhile,
however, the International Monetary Fund is pressing her to impose even
greater fiscal austerity.
The allegations against Ms Bhutto have come against a backdrop of
Pakistans international reputation for corrupt business practices. In
early June, Transparency International, a Berlin-based international
coalition of public figures and academics opposed to corruption, reported
that business executives rated the country as the worlds second most
corrupt, after Nigeria.
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960818
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UK forum doubts claim on investments
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Shaheen Sehbai
WASHINGTON, Aug 17: A global think-tank, drawing on over 750 senior faculty
members at Oxford University and other major universities around the world,
has cast its doubts about claims of foreign investment and political
stability in Pakistan.
Called Oxford Analytica, the UK-based think-tank issued its report on
investment in Pakistan on Friday, sending it to hundreds of its
subscribers, including major governments, banks and financial institutions,
the World Bank and the IMF and investment organisations round the world.
The report on Pakistan, issued on Friday, says a total investment of $640
million was received by Pakistan from July 95 to March 96 against claims of
$20 billion dollars in MoUs.
Nearly all major investments have been in the energy sector where official
incentives are particularly generous. While expansion in this sector is
especially crucial in underpinning future growth, the lack of investment
elsewhere is a serious concern, it says.
About 50 per cent of this investment comes from just three countries, and
top of the list is the United States, it says.
On the political side, the report has much stronger views, saying there
are now real doubts as to how long the government of Prime Minister Benazir
Bhutto will last, and there is widespread uncertainty over who might
succeed it.
Adding to the political uncertainty, the report said, there was widespread
perception among businessmen, both foreign and domestic, that corruption
and lawlessness has risen over the last two years.
Moreover, the governments reputation has been badly tarnished by
allegations that senior figures are involved in malpractice. Individuals
repeatedly accused of corruption include Bhuttos husband, Asif Ali
Zardari, who was last week made a minister for the first time, the report
said.
Giving its outlook for Pakistan, the Oxford Analytica report said: Owing
to the high risks attached to investment in Pakistan, banks impose tough
conditions and are reluctant to consider any concessions on interest rates.
Given the bleak outlook for the economy and political stability, the
prospects for a diversification of foreign investment appear poor at
present....
Concluding the assessment, the report said, mounting fears of economic and
political stability threaten to erode investor confidence.
Founded in 1975, Oxford Analytica says it has built an international
reputation for seasoned judgement in assessing the implications of national
and international developments facing corporations, banks, governments and
international institutions.
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960821
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Addicts, not traffickers, held under drug laws
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Staff Reporter
LAHORE, Aug 20: Almost all the 2,200 people booked under the anti-drug law
in Lahore are narco addicts and not traffickers, a list submitted in the
Lahore High Court by jail authorities revealed on Tuesday.
The addicts account for two-thirds of the 3,300 under-trial prisoners
lodged in the citys camp jail, which has a capacity for 900.
Such a large number of arrests of addicts brings no credit to police.
Rather, it demonstrates its inability to nab the traffickers, particularly
the big fish among them, and plug the source of narcotics supply, Justice
Khalilur Rehman Ramday told SSP Chaudhry Sajjad on Tuesday.
The addicts have been booked under the Prohibition (Enforcement of Hadd)
Order, 1979, mostly for possessing or carrying charas. They are generally
sentenced for six months but remain in camp jail for years awaiting their
trial.
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960820
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Police on job to pull crowd for PM
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Staff Reporter
LAHORE, Aug 19: Punjab police and Lahore district administration on Monday
seized scores of wagons plying on inter-city routes to transport people to
the two meetings to be addressed by the prime minister in Lahore on Tuesday
and in Okara on Wednesday.
Reports from Okara, Sahiwal, Faisalabad, Sheikhupura, Muridke, Gujranwala
and Jhang said the police and magistrates had set up special pickets at
different places on the highways to impound wagons on the instructions of
the provincial government.
Thousands of passengers travelling in the seized wagons had to face a lot
of difficulties due to the police action which added to their misery in a
hot and humid weather.
Many of them travelling to Lahore told Dawn that they had to change wagons
several times because of the police operation.
It took me around six hours more than twice the normal journey time
and five wagons to reach Lahore from Okara, one of them told this
reporter.
The police also took into their possession documents as well as driving
licences of hundreds of vehicles and their drivers, asking them to reach
particular places on Tuesday and Wednesday mornings to transport PPP
workers to the venues of Prime Minister Benazir Bhuttos public meetings in
Lahore and Okara.
Drivers and owners of wagons were warned of cancellation of their route
permits and strict action if they failed to comply with the instructions.
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960821
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Govt increases petroleum product prices
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Sabihuddin Ghousi
KARACHI, Aug 20: Pakistan Petroleum Dealers Association on Tuesday
increased the rates of Super and Supreme petrol to Rs.16.36 from Rs.16.12
and that of Regular petrol to Rs. 15.06 per litre from Rs.14.66.
The new rates were announced by the Petroleum Dealers Association following
governments decision to enhance fixed sale prices of five petroleum
products which include 24 paisa rise on Super and Premium and 40 paisa per
litre increase on Regular petrol.
Before this rise in prices the government had reduced twice the prices of
these products. On June 12 last, just a day before the 1996-97 budget was
announced, the government had reduced prices of Super/Supreme by 21 paisa
and that of Regular petrol by 20 paisa per litre. Again on July 22 last the
government reduced prices of Super/Supreme by 8 paisa and that of Regular
grade by 14 paisa.
Governments contention to raise prices of petroleum products for domestic
consumers is that oil prices has increased in international market.
However, market watchers challenge governments argument and quote crude
oil prices in London on Monday when it came down to $20.57 a barrel from
$20.64 a barrel.
Petroleum dealers attribute price rise to unending fall in rupee value vis-
a-vis dollar and other international currencies which coupled with heavy
load of taxation on crude and petroleum products import necessitated the
upward adjustment on Tuesday.
They believe that petroleum prices are bound to go up further as long as
the rupee continue to receive beating from international currencies and a
direct implication would be rise in transport cost, power generation and
allied activities.
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960819
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FIA arrests 12 UBL employees for fraud
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Staff Reporter
KARACHI, Aug 18: Twelve employees of I.I. Chundrigar Road branch of United
Bank have been handed over to the FIA, following detection of fraud
involving over Rs300 million.
The management is tight-lipped on the issue but employees say the fraud was
detected in July in which the manager of the bank, Mr Masud, who was also
involved reportedly went into hiding.
According to the employees Mr Masud had been serving the branch for the
last more than 20 years where he rose to the position of vice president and
manager from a junior position. No explanation is available as to how a
single employee worked for more than 20 years at a place when as a matter
of rule transfer becomes due after four years at the most.
Fraud was committed through opening of accounts in fictitious names and in
the names of employees who were sanctioned temporary overdrafts. The
amounts in these temporary overdrafts were much higher than the limits
fixed by the UBL but amazingly remained undetected for the last several
years as employees believe that it all started much before 1990.
Not only the UBL auditors were unable to detect these fraudulent entries
but the periodical inspection of the State Bank of Pakistan could not trace
out anything, a senior employee said.
Sources in the UBL believe that there are such fraudulent entries in more
than 100 accounts and beneficiaries have been the staff members and those
who enjoyed political clout.
Sources in the head office say that irregularities in bank entries were
detected at I.I. Chundrigar Road branch in May immediately after the State
Bank took over the UBL. Investigation was initiated thereafter in May, and
in July it was revealed that these were not mere irregularities but a fraud
involving about Rs350 million. Interrogation of the officials and employees
found involved in this fraud is said to have resulted in the recovery of
Rs45 to Rs50 million. But during this time, the main culprit got an
opportunity to escape.
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960818
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Ninth Five-Year Plan envisages 8% GDP growth
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By Ihtashamul Haque
ISLAMABAD, Aug 17: The Ninth Five Year Plan (1998-2003) calls for a steady
Gross Domestic Product (GDP) growth of 8 % in the 21st century.
The Ninth Plan must think high in terms of growth. A vision of GDP growth
at 7 % per annum and the determination to make it a reality has to be the
hallmark of the plan. It should be the bridge that takes the economy to a
steady growth path of 8% in the 21st century, says a first formal document
prepared by the Planning Commission that is expected to be made the basis
for the Ninth Plan.
It said that Pakistans time-tested growth hovers around a potential of 6%.
An agricultural failure leads to a plunge into the 2-3 % range and an
industrial recession depresses it to 4-5 % range. An occasional jump to 7%
has almost always been the result of revival from a low base.
A low rate of investment of under 20 % is only one reason for the economy
to get set in the 6 % mould. There are structural rigidities at work.
Agriculture as well as industry continue to depend mainly on the dynamism
of cotton crop and the textile sector.
Only a high growth will reduce the time span for doubling the per capita
income. Again, let there be no doubt that only high growth provides secure
guarantees against poverty, income inequality and unemployment. Populist
policies specifically directed to attack these problems relieve their
burden only temporarily and incompletely. The danger that they might recur
is always there whenever growth slows down.
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960817
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Financial impact of energy policy
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Dr Farrukh Saleem
UNDER the Energy Policy, the Government of Pakistan (GoP) has issued around
three dozen letters of support (LoSs). The total generating capacity of the
independent power project (IPPs) with LoSs in place now exceeds a colossal
7,000 megawatts requiring an outlay of more than $7 billion.
To be certain, not all of the IPPs will be able to arrange the required
debt and equity financing. Out of the three dozen IPPs, at least six among
them Power Generation Systems, Kohinoor Energy, AES Lalpir, Southern
Electric, Japan Power and Rousch Pakistan claim to have achieved the all-
important financial close (FC).
Under the policy, all sponsors of IPPs have been guaranteed that, at least
60 per cent of their capacity would be bought by WAPDA or KESC at US 6.5
cents per kwh for the first 10 years and at 5.9 cents per kwh over the
remaining life of the project.
Additionally, projects generating more than 100 MW and commissioned by the
end of 1997 shall be allowed a premium of US 0.25 cent per kwh. All these
stipulations have been guaranteed through a standardised bulk power
purchase agreement (PPA) backed by the GOP while the supply of fuel has
also been assured under a government-backed fuel supply agreement.
Power companies can also issue bonds, registered or bearer, while sponsor
may obtain shares at a discount. IPPs are exempt from corporate income tax.
Exemption from custom duty, sales tax and import surcharges have also been
granted. The State Bank of Pakistan (SBP) shall provide foreign exchange
risk and repatriation of equity and dividends has also been allowed.
As a matter of fact, no other country on this planet offers either a better
return or a more generous set of incentives. No wonder that the Private
Power and Infrastructure Board (PPIB) was overwhelmed with 116 applications
with a collective generation capacity of 26,000 MW.
Everybody who was anybody, foreign or local, wanted the easy way to mint
money by setting up a power plant or two. The PPIB issued a letter of
intent (LOI) to 75 of the 116 applicants, still representing a generation
capacity of around 20,000 MW (not including Gordon Wus 5,280 MW). Of the
75, around three dozen have so far managed to obtain an LOS.
Short-sighted policy
Pakistans demand-supply gap, on the other hand, ranges between 2,000 MW to
3,000 MW, assuming of course that there is no significant increase in
price. In sharp contrast to the current and the expected gap, WAPDA and
KESC have already been made to enter into contractual agreements binding
them to buy electricity from IPPs at an excessively inflated rate that
shall require an outlay of some Rs 75 billion per year between now and the
year 2007.
Keeping in perspective that it has taken WAPDA several decades to reach a
revenue target of Rs 50 billion per year, that at least one out of every
four kw generated remains unbilled, an irreparably weak balance sheet
showing a rather deception accumulated equity of Rs 76 billion and also a
frail trade-debt picture are all reasons to believe that the GOP shall
itself be called upon to fulfil the commitments under the various bulk PPA
in the not too distant future.
This is not to suggest that GOP lacks the resources to satisfy its
obligations. Its economic wizards have time and again told us that they
could print as much local currency as they desire, somehow forgetting that
the Security Printing Press runs under strict guidelines agreed upon
between the GOP and International Monetary Fund.
Moving over to the supply side, fuel supply agreements to IPPs have also
been guaranteed by the GOP. In most cases, the Pakistan State Oil (PSO)
stands committed to supply as much imported oil as the IPPs shall require.
Based on a guaranteed 60 per cent plant load factor of the IPPs, the PSO
company may need upwards of $ 2 billion. Unfortunately, our Security
Printing Press cannot satisfy international suppliers of oil.
The year-to-year trade deficit is expected to hit a record $ 3.5 billion
and there is no way an additional $ 2 billion could be found within the
next few years, when a majority of the IPPs are scheduled to go into
operation.
On the demand side of the equation, WAPDA and KESC certainly do not seem
capable of paying for what they have already contracted to buy, while the
PSO will not be able to locate the additional $ 2 billion that it is going
to need to buy imported oil. Just where does the success of the Energy
Policy really lie?
In the US, the 1992 Energy Policy Act may soon be amended allowing
independent power producers to buy and sell power more widely among one
another. As a result of deregulation within the utility sector industrial
electricity rates (that) now average about 4.6 cents/kwh ... may drop to an
average range of 2.5 to 3.5 cents/kwh.
In the Indian state of Maharashtra, the price tag of Enrons Dabhol Power
Project has been slashed by 11 per cent, lowering the tariff that Enron can
charge its customers and at the same time increasing the output from 2,015
MW to 2,450 MW. Meanwhile, Chinese officials have put a cap of 12 per cent
on the rate of return to foreign firms, but foreign utility operators still
keep coming. (Hubco was guaranteed a hefty return of 17 per cent and other
IPPs have no cap).
The reason behind this is that the overall growth in electricity
consumption either in Europe or in North America has slowed down to a
meagre one per cent per year, while in most developing Asian countries
demand is expected to grow by eight per cent a year. Most western
companies, therefore, expect to reap a bonanza by operating in countries
like the Philippines, Thailand and Pakistan.
Dubious projects
A guaranteed dollar-denominated real rate of return, duty-free import of
plant and machinery, an indefinite tax holiday, indexing of the power rate
with inflation and currency fluctuations, treating fuel costs as a post-
through item. What more could a utility operator dream of?
Some sponsors still attempt to strike even more favourable deals by
greasing the right government quarters. Enrons Dabhol project in India
that was negotiated directly with the government had a smell of being
unfair to the consumers. Gordon Wus project in the Philippines has faced
similar allegations. The Philippines government has also claimed that
Westinghouse bribed the Marcos regime. But none of these deals have
survived the test of time. Governments change and non-merit based projects
have to suffer the most.
The national treasury might witness depletion and the sponsors might reap a
bonanza, but the poor consumers of this country are destined to remain
poor. Federal Minister for Water and Power Malik Ghulam Mustafa Khar, has
said, the two hydel power stations at Mangla and Tarbela Dams cost 12-15
paisa per unit, while the thermal power for the same volume is priced at Rs
5 per unit. Who is to listen to what Mr Khar has to say? The lion is
getting old by the day and his hair is turning grey by the hour.
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960817
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Discovering new Wealth Tax assessees
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Ikramul Haq
THE PRESENT NUMBER of wealth tax assessees in Pakistan portrays a
disturbing picture. In a country where millions possess substantial assets,
it is a pity that the Income Tax Department has managed to bring merely 0.2
million persons on its wealth tax roll.
The situation poses a serious question of inefficiency of our present tax
machinery, as well as the reality that voluntary compliance of tax laws in
Pakistan is extremely poor. The data released by the Central Board of
Revenue in the latest issue of CBR Year Book, 1993-94 & 1994-95 testifies
to this grim reality. The following figures tell the story for the last
five years:
Source: CBR Year Book 1994-95
The share of Wealth Tax in direct taxes has shown a very disappointing
increase i.e. from 2.5 per cent in 1990-91 to 2.7 per cent in 1994-95. The
share in total tax collection increased from 0.4 per cent in 1990-91 to 0.7
per cent in 1994-95.
It is disturbing to note that the share of wealth tax in total direct tax
collection is as low as 2.7 per cent even in the Financial Year 1994-95.
This leads to the obvious conclusion that performance of the department,
despite tall claims, is extremely poor in the area of wealth tax.
I will pinpoint here one area, which alone can give us revenue of not less
than Rs 9,100 million if the wealth tax law is properly enforced. The
process of broadening the wealth tax-base requires the following three
steps:
Removal of imbalances
Imbalances existing in the present law should be removed. It is a strange,
but bitter fact that while every car is part of ones net wealth,
agriculturists have been allowed to enjoy exemption in respect of such
expensive vehicles like Pajeros, Land Cruisers etc. This is just one
example. I leave this to the department to consider as to how we can
motivate a person to pay wealth tax on his small car, when the CBR, while
exercising its delegated power u/s 5(20) of the Wealth Tax Act, decided to
give exemption in respect of Pajeros and Land Cruisers.
Modern survey techniques
The accumulation of wealth reflects itself in various properties such as:
(a) houses/buildings,
(b) plots,
(c) new business,
(d) securities, saving certificates, fixed deposits,
(e) purchase of shares and
(f) valuable articles.
The department must develop a system of monitoring to find who is the owner
of the above referred asset or assets on a particular valuation date. This
will help to discover a number of new wealth tax assessees. Information
should be collected from the following agencies on a yearly basis (with
reference to particular valuation date);
i. Registration authorities in each district,
ii. Registrars, Deputy Registrars and Assistant Registrars of the Corporate
Law Authority wherever the Authority is maintaining an office.
iii. Principle officers of all big companies.
iv. Banking authorities.
There is an urgent need to collect, and compile the data referred to above
and then, after proper analysis, the department can evaluate the actual
potential of wealth tax collection in the country.
Efficient tax machinery
Without the existence of an efficient tax machinery, the goal of broadening
of wealth tax base can never be materialised. A lot of efforts are required
in this direction. Everyone agrees that the present tax machinery is
totally in shambles, yet no concrete measures have been taken by the
concerned quarters to improve the structural form of the present tax
collection machinery. It needs to be emphasised that unless we have a
reliable, efficient tax machinery, no information can be helpful to
discover new wealth tax assessees.
The following special measures, if taken, can go a long way to help
increase the number of wealth tax assessees in Pakistan.
Targeting the real persons: There were about one million persons in 1990 in
Pakistan having private farms exceeding 20 hectares (figure taken from
Economic Survey 1995-96). Total hectares owned by them are 4.55 million.
If wealth tax of Rs 2,000 per hectare is levied, instead of valuation of
agricultural land on PIU basis (which is for obvious reasons quite obsolete
now), the revenue potential comes to Rs 9,100 million which alone is 800
per cent more than the target of Rs 1,644 million collected under the
wealth tax head in financial year 1994-95. These farms are owned by big
feudal lords who are not paying any income tax on their agricultural
income. They must pay at least Rs 500 per acre as wealth tax on their huge
farms.
This avenue alone will give the department at least one million new wealth
tax assessees, with fixed revenue potential of Rs 9,100 million.
Market capitalisation of shares: Till 31st March 1996, we have a total
market capitalisation of ordinary shares at Rs 346.77 billion. This is a
totally documented area and information can be collected from all listed
companies to evaluate new wealth tax payers having substantial number of
shares as on 30.6.96.
Investments in government securities: Total investment in different kinds
of national investment schemes as on 31.3.1996 stand at Rs 299.92 million.
This can be an excellent source to increase the total number of wealth tax
assessees.
Exemptions
The direct taxation system in Pakistan continues to have a narrow base,
particularly in consequence to the existence of a large number of
exemptions/ exclusions, and the major sector of agriculture being outside
the tax ambit.
The shortcomings of income as the tax base, have lately been the source of
public criticism. Most of the critics have been making only a generalised
demand for abolition of the tax without proposing any alternative base for
personal taxation.
Demands of this kind normally would not merit serious consideration because
their source can be traced back to vested interests. However, recently a
rather serious attempt in the area has been made by the Institute of Public
Studies and the International Institute of Islamic Studies calling for
total abolition of income tax and its replacement by a tax on net worth
defined as total assets minus total liabilities of a taxable unit.
They have argued that the correct measure of the ability to pay tax is the
surplus of income over expenditure which is reflected in increase in net
worth, stated to be more easily detectable and measurable and more
difficult to conceal or manipulate than income.
Wealth, no doubt offers an alternative measure of ability to pay. But
wealth cannot be adopted as a tax base in exclusion as an alternative to
other bases, because a levy with wealth alone as the tax base can only be
punitive in nature. Such a tax would, in fact, amount to levying a penalty
on savings, because, besides inheritance, wealth represents accumulation of
a persons savings.
Another problem with this form of taxation is that a taxpayers cash flow
may not correspond to his taxable capacity as the taxable wealth is
generally computed on the basis of current market value of assets acquired
originally at much less cost. That is why previously wealth was not adopted
as the exclusive measure of ability to pay any where in the world; wealth
tax has mostly been adopted as a supporting arm for income taxation.
The main rationale offered for imposition of wealth tax in combination with
income tax usually is that income alone is not a sufficient measure of
taxable capacity. Since the possession of property is known to have an
intrinsic value, independent of its actual income-earning power, it
represents a reserve of spending power which reduces the taxpayers need
for saving from current income, greatly increases the owners freedom of
action in the sphere of economic activity and also signifies a degree of
control over the nations economy.
It, in fact, increases a taxpayers ability to pay. Under these
circumstances, adopting income as the only measure of economic power and
ability to pay may amount to discrimination against those who have earned
income through personal efforts and not through windfall or inheritance. In
view of these considerations, a combination of income and wealth as tax
base is more appropriate for distribution of tax burden.
It is generally acknowledged that a tax on capital possesses the inherent
capability of inducing the owners of capital to use it in a more productive
manner. Being a charge on the value of an asset, it tends to induce the
owner to make such a use of the asset as would yield sufficient additional
income to pay the tax imposed on it.
If a person is taxed on capital sitting in a non-productive use, he is made
to have an incentive to put that capital back into the economic mainstream
and get some income out of it. The tax can, therefore, be made to work as a
vehicle for rendering the socially most desirable use of capital and
economically more beneficial for the owner.
The compelling impact of this instrument can be made to work in the
Pakistani situation for not only driving inherited resources out of idle
assets but also for enforcing diversion of the accumulation of current
savings in the society towards more productive use.
The tax is actually a levy on capital only by definition. What it actually
seeks to subject to charge is only the inefficient capital. Capital
efficiently employed is expected to be able to increase its productivity in
order to nullify the tax burden. When seen in this context, the tax assumes
the character of a levy on the potential income that a given amount of
capital is capable of yielding when employed in the right kind of assets.
It is possible to devise a system inter-linking the level of exempt income
that a taxpayer may enjoy under the income tax regime with the level of
potential income that may be imputed (at a pre-fixed rate of return) to
capital charged to tax under the capital tax regime.
This theoretical analysis provides a good case for capital taxation in
Pakistan where most of the assets are not diverted towards high-yielding
investment, resulting in a stagnation of the economy. The socio-economic
conditions of Pakistan, therefore, suggest that income alone cannot be a
sufficient base for taxation. It appears imperative to introduce a tax-
reform package aimed at:
Broadening the direct tax base by specifically levying tax on capital
assets, re-introducing estate duty and tax on capital gain of immovable
property.
Rationalisation of tax system in order to achieve the merger of various
levies under one administrative control, and by simplification of
procedures.
Discouraging investments in unproductive and luxury items and by granting
exemptions/incentives to value-adding manufacturing sector. For the
achievement of these goals capital taxation can play a vital role for
shifting the tax burden from investment and production to consumption and
non-productive assets formations.
In this perspective, we can enhance the number of wealth tax assessees
provided that a policy of uniform taxation is introduced both for
agricultural and non-agricultural assets.
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960817
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Dos and donts of sustainable development
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By M.B. Naqvi
A SIGNIFICANT development took place early this month in Islamabad. It was
the second annual Sustainable Development Conference organised by the
Sustainable Development Policy Institute (SDPI). It was a remarkable
gathering of economists, human rights workers, ecologists and experts of
various disciplines. The focus was, predictably, on both development and
its sustainability. This gathering was responsible for a great deal of
clarifications of ideas and adding new dimensions to the concept and
practice of development.
The SDPI is performing a yeomans service to Pakistanis in introducing two
vital elements to the national discourse on the subject: one is tolerance
and pluralism of all new ideas. Secondly it goes right down to the
grassroots in conceiving development and relating all issues that impinge
on such a development at the grassroots. Which is a great service.
The inner linkages of various aspects such as good governance, ecological
considerations, human rights and economic progress measured in terms of
human development were underscored. The goals that are required for the
endeavour to be made by all democrats were probed and those who want true
progress for actual alleviation of felt human problems and for finer social
and cultural purposes cannot but be happy.
The highlights of this years conference was a particular session that
dealt with Pakistans current economic situation. Its distinguishing
features were addresses by Qazi Aleemullah, the Planning Commission chief;
Dr Mahbubul Haq, former Finance Minister and Minister Shah Mehmood Qureshi
in charge of the finance portfolio.
It was a remarkable session for underlining the many facets of the present
economic situation.
Eloquent criticism
As could be expected, Dr Haqs presentation was as clear and eloquent as it
was incisive of some of the things it criticised. It is not our intention
to discuss the validity and the adequacy of the solution he offered. All
that it needs to be said here is that its critique of the present trends
and policies was trenchant and incisive, though it is necessary to note
that he basically agrees with the larger contours of the economic policies
being pursued by the present government, i.e. the Structural Adjustment
Programme as recommended by the IMF.
Dr Haq is highly critical of the government on various counts, one of which
is truly a structural question, viz doing away with feudalism.
The doctors is remarkable for having stuck to this position for long and
has made many enemies in high places because of that. But the adequacy of
the prescription he makes for the recovery of Pakistans economy from its
present troubles is approximately the same as that of the IMF programme on
which it insists and the Pakistan government seems to be failing in
implementing it.
Qazi Alimullahs and Mr Qureshis addresses remarkable for showing
everything necessary and possible were being done by the government.
What does the terms sustainable development imply? It is a subject on which
long papers were read and learned discussions took place.
It was shown to the satisfaction of all that the kind of consumption that
is standard today in America and other developed countries is not one that
can be sustained if all other nations were to adopt that as their goal. The
experts invited the people to imagine the result of all the developing
countries achieving economic progress through development efforts aimed
directly at increasing consumerism and consumption a quantum of
consumption that is typical of developed countries.
Consumer society
The fact of the matter today is that internationally 20 per cent of the
population of the world is consuming at least 70 per cent of all the
resources of the earth. These resources are sure to run out soon and the
planet may soon be a desolate place that would not be able to support even
a fraction of todays population should that happen.
It is needless to point out the various facts that have now become the
commonplace regarding climate and other ecological damage that would occur
if the present trends are not arrested. The concept is certainly clear and
unexceptionable.
The difficulty arises only when these concepts are extended to specific
items. The new emphasis on preferring renewable or rechargeable resources
is most welcome. Some new issues raise more problems than they solve.
An instance is the opposition to high dams on rivers. The kind of
destruction they wreak in areas upstream of the dam and the damage that is
done to the ecology of these areas leads many to the conclusion that big
dams do more harm than the benefit they provide.
This is not immediately acceptable to many say like Ghulam Mustafa Khar,
who would like to argue that the benefits in terms of electricity and
irrigation waters that big dams give to areas and the benefits that people
derive from them far outweigh the losses to people whose holdings and
houses get submerged and the supposed ecological damage.
It remains a moot point whether we should all oppose big dams simply
because they involve some ecological and human costs. Some of the more
ardent ecologists simply refuse to countenance the cost-benefit analysis of
those who try to balance the costs against the benefits. The subject will
of course continue to engage the attention of all high-minded people.
Good governance
One of the most important recent contribution to the ideas and practices of
sustainable development comprises the notion of good governance. Good
governance itself comprises a large number of components ranging from a
responsible democratic government to the idea of participatory democracy
that begins at the grassroots and it takes into its sweep the inalienable
human rights that need to be augmented further with social and economic
rights.
Needless to say it includes things like rule of law, the acceptance of the
value of human being as a unique and ultimate goal, the pleasure and
happiness of whom is the ultimate goal of all social activities.
Good governance is now thought to be both a goal in itself and the means of
sustainable development. Indeed it is now considered to be most vital
element of the sustainable development.
Most new converts to the idea of sustainable development hold that mere
addition to the incomes of the people even jobs for all, do not necessarily
mean development that could be supported if they do not include the
elements of good governance, particularly human rights.
All manner of those who have reservations about any kind of democracy or
the very concept of democracy emphasise the importance of pure economic
progress over time make the concept more controversial than otherwise it
would be. In the normal course, ordinary people will have no difficulty in
recognising the direct linkage between development and political rights.
Neither can substitute the other.
Classic liberals
Many classical liberals used to hope that civil liberties were all that was
needed to ensure good life. Today we have had other schools that hold
economic well-being and welfare of all as the be all and end all of all
human endeavour. The fact is easy to recognise today that what people
everywhere need is both human rights in the fullest measure possible mixed
with development conceived in an enlightened manner that include all the
new ideas like preventing climate change, soil erosion and deforestation,
denudation of earth and pollution in cities and what have you.
All these concepts now are increasingly being taken as component parts of
economic development. It is no longer possible to go back either to pure
human rights wallahs that ignore economic well-being or those who emphasise
higher standards of living for all and ignore political rights and other
social issues. The time has passed for this either or approach on the
subject.
Just as Pakistans economic situation was intensively discussed in a number
of sessions, sometimes explicitly and sometimes as component part of some
other problem, similarly international economic situation also engaged the
attention of many participants.
Some of the participants were experts in their subjects. Such experts had
come from Germany and the US among others, the conference had drawn people
from such far off places as Thailand. There were delegations from Sri Lanka
and Bangladesh. India had sent its own contingent which included a retired
foreign secretary and two experts who stood out throughout the discussions:
one was Smithu Kothary, the son of the illustrious Rajni Kothary, who dealt
with all manner of problems ranging from human rights to sustainability of
development, co-ordination with human rights organisations and organising
political action by NGOs. And there was also Ashok Khosla, with a
background of both science and technology, who specialises in simpler home-
grown technology meant for grassroots employment generation and local
additions to the infrastructure of local economies. His machine and ideas
of local power generation and generating economic development contrasted
sharply with some of the Pakistani experts who spoke purely in the
Pakistani context of combating the present economic maladies.
The one who led the discussions on the international economic situation,
with special reference to MNCs, was David Cotton from the United States. He
frequently writes in the weekly news magazine NATION. He is an acknowledged
expert on MNCs functioning and he leads a is an acknowledged expert on
MNCs functioning and he leads a group that holds alternative ideas on how
to counter the near sovereignty of MNCs over the world economy.
His rejection of the IMF Structural Adjustment Programmes and his
correlating it with what the larger corporations do inside America were
very instructive.
The long and short of these discussions was the need to watch and regulate
the activities of the MNCs in third world. Although Mr Cotton never uttered
the word, but it is possible to describe his prognoses and remedies as
trying to defang the MNCs. He opposed the idea of globalisation and truly
liberalised trade as bogus and held that the ideal should in fact be
localisation of the economies. The latter should first of all make progress
domestically so that they do not fall a prey to the predatory MNCs in the
bogus name of liberalisation and globalisation.
Grassroots employment
On the subject of good governance notable contributions were made by Tariq
Bannauri himself,, Smithu Kothary and to an extent Ashok Khosla. They
emphasised the need for grassroots employment generation through new types
of economic activities in the informal sector.
A valuable contribution was made by Tasneem Siddiqui on the subject. But
the constraints posed by local feudal influence took most people back to
the problems discussed in other sessions viz namely good governance, need
for adding to local infrastructure and new kinds of financing.
One special subject that attracted a lot of attention was preventing
pollution in the seas and cities. The noise and smoke pollution in the
cities of Pakistan were highlighted by innumerable speakers who showed that
the position is so unsustainable today that something should be done and
soon, the pollution in the cities has now become a major health hazard and
a positive disincentive to the desired kinds of development at grassroots.
Insofar as the pollution of sea is concerned, around Karachi and other
areas, the way in which the natural resources of the seas are being short-
sightedly exploited was seen to be a positive drag on the overall progress
rather than a part of development.
The ecology of the sea was equally emphasised and not many people could be
found who would support the complacency of Authority in this country.
Although it is a world-wide problem, Pakistan and some of the countries in
the region are recipients of all kinds of industrial waste, including
nuclear waste, from the developed countries. That too is now a major and
growing problem for countries of the Third World in a general sort of way
and for Pakistan and some of its neighbours in particular.
These are dimensions that frequently tend to be ignored but can no longer
be allowed to remain ignored. Similarly the concept of small dams, such as
emphasised by Ashok Khosla and some of the other Indian representatives as
well as by many Pakistanis remains a phenomenon that is astonishing. How
can a country where the building of Kalabagh dam is such a big controversy,
people fail to make use of thousand and one opportunities of generating
electricity locally at very low cost, with very little overhead expenses.
It is beyond anyones understanding.
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960816
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Taxes on farm incomes, wealth to be raised
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Ihtashamul Haque
ISLAMABAD, Aug 15: Pakistans diminishing resources have forced the
authorities at last to broaden its highly weak tax base by substantially
increasing taxes on agricultural incomes and wealth.
Informed sources told Dawn here on Thursday that the high ups of the
government have expressed serious concern over what they termed alarmingly
low recovery of taxes from the landed gentry during 1995-96 and decided to
tax it with a view to enhancing the countrys declining resources.
The landlord class paid only Rs 28.25 million during the financial year
ended July 31, 1996, while salaried people deposited Rs 1.82 billion during
that period.
Our landlords have paid shockingly low amount of taxes in 1995-96 and this
is due to our elected representatives who thwarted all our efforts to
effectively tax the owners of huge agricultural assets, said an official.
Nevertheless a serious effort has now been made to address the issue by
according top priority to recover agriculture tax and wealth tax
commensurate with their phenomenal incomes and holdings.
The approach to the Ninth Five-Year Plan (1998-2003) was to ensure that the
agricultural income and wealth taxes should be high on the agenda during
the plan period.
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960816
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India proposes joint stand with Pakistan in WTO
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Staff Reporter
KARACHI, Aug 15: India wants to take a joint stand with Pakistan in World
Trade Organisation (WTO) on a proposal recently tabled by Canada on setting
up a Working Party in the WTO to study the multifarious aspects of the
international investment.
India has serious reservations on the Canadian proposal, now under
discussion at the WTO at Geneva, and feels that once a Multilateral
Investment Agreement is signed the role of the host countries will be
reduced considerably in scrutinising the investment proposals.
The Indian Commerce Secretary, Mr Tejendra Khanna, in a letter to his
counterpart in Islamabad, Mr Salman Farooqui, has expressed his desire that
both India and Pakistan should evolve a consensus on the Canadian proposal.
I would like to share with you some of the points that we have been
repeatedly making in various fora at Geneva and elsewhere on the subject,
wrote Mr Khanna while asking his Pakistani counterpart to give his
assessment of the situation as he sees it and how he proposes to deal with
this subject in the heads of delegations in the process currently on in
Geneva.
India also wants that the issue should first come up for consideration in
the UNCTAD as was decided in its last meeting and as such there is no need
for Ministerial Conference at Singapore to set up a Working Party on
investment.
Giving the Indian point of view on the investment issue, Mr Tejendra Khanna
said, both European Commission (EC) and Canada are looking for right to
investment as an important element of Multi- lateral Investment Agreement
(MAI) in the WTO.
He said many developing countries will find it politically difficult to
concede the right of investment and the right of establishment.
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960822
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Heavy covering purchases in PTC vouchers
-------------------------------------------------------------------
Staff Reporter
KARACHI, Aug 21: Selective support on Wednesday emerged strong on the blue
chips counters but there were no indications that the stock market was back
on the rails.
Heavy covering purchases in PTC vouchers around Rs 34 on news that talks
for its privatisation, with the Indonesian and Dutch consortium team are in
progress in Islamabad was said to be an aiding factor, which pushed its
price further higher.
It appeared a temporary boost as some of the leading institutional traders
holding short portfolio positions were back in the rings and made active
purchases at the lower levels.
However, rallies in the big four, including Adamjee Insurance, PSO, Hub-
Power and PTC showed their relative strength sending messages in the right
quarter that they could lift the index if not the broader market.
The KSE 100-share index showed a moderate recovery of 3.77 points at
1,426.84 as compared to 1,423.07 a day earlier as most of the leading base
shares finished recovered.
Dealers said although the market is ripe for a grand technical rebound
owing to its highly oversold position, it lacks direction as bulls too
shaky about the near-term outlook.
They said the market needs sustained support at least from the financial
traders to boost badly shaken confidence of general investors who have
decided to stay away.
But in a way they have demonstrated that they could lift prices of pivotals
if they desired so and there are sound reasons behind their action.
It was perhaps in this background that both PSO and Adamjee Insurance,
which have declined sharply over the last few sessions showed broad rallies
as investors covered positions. Both rose by Rs 6.50 to 10 amid active two-
way trading.
But other leading shares failed to pick up their lead and groaned under the
weight of renewed selling coming mainly from jobbers and sundry
speculators.
There were some exceptions, however, as MCB, General Tyre and Dream World
managed to post good gains on covering purchases at the lower level.
Dadabhoy Insurance, which was quoted spot apparently to forestall further
increase in its price was quoted further higher by Rs 5.
PEL, Pakistan Refinery, Atlas Lease, 4th ICP, J.K. Spinning and ICP SEMF
were among the prominent local losers, falling by one rupee to Rs 5.
Among the MNCs, which fell further, Bata Pakistan, Glaxo Lab, Dawood
Hercules, Pak-Suzuki Motors, Shell Pakistan, and Siemens Pakistan were
leading, which finished lower by one rupee to Rs 3.50.
Trading volume was slightly lower as compared to Tuesday as the market was
closed a bit earlier owing to celebration of Eid Milad later in the evening
in the premises of the Stock Exchange building.
It fell to 22.532m shares from the previous 24.590m shares, bulk of which
went to the credit of PTC vouchers.
The most active list was topped by PTC vouchers, up 25 paisa on 8.814m,
followed by Hub-Power, higher 35 paisa on 3.725m, Fauji Fertiliser, lower
60 paisa on 0.735m, and ICI Pakistan, unchanged on 0.679m shares.
Other actively traded shares were led by Dewan Salman, up 15 paisa on
0.412m shares, Lucky Cement, lower 20 paisa on 0.240m, KASB Premier Fund,
off 25 paisa on 0.132m, Pakistan Synthetics, up 20 paisa on 0.130m and
Engro Chemicals, up 25 paisa on 0.119m shares.
There were 305 actives, out of which 151 shares fell, while 67 rose, with
67 holding on to the last levels.
-------------------------------------------------------------------
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960816
-------------------------------------------------------------------
Karachi Port Trust-1
-------------------------------------------------------------------
By Ardeshir Cowasjee
PLAYING on well-loved home ground this week, on which four generations
(both paternal and maternal) of my family have played, and the fifth is
playing, I write on the port of Karachi with which we have been associated
as benefactors, developers, conservators and users.
Any man of Pakistan with a maritime mind knows that:
Karachi is essentially a backwater harbour sustained by natural scour.
The mouth of Chinna Creek, opening on to the seat at Clifton, was closed
over a hundred years ago so as to convey through the harbour the flowing
and ebbing waters to and from the eastern backwater, thereby obtaining
their scouring power upon the harbour channel and entrance.
The tides in Karachi are semi-diurnal, with a lesser and a greater tide
each day.
The only entrance to the harbour is through the channel flowing between
Manora and Keamari, through which the whole tidal volume passes with each
tide generating velocities sufficient to naturally maintain charted depths
in the navigable channel.
The accumulation of any sediment, or reclamation of land, in either of
the eastern or western backwaters would disturb the tidal flow and thus the
depth in the navigable channel necessitating excessive and expensive
perpetual mechanical dredging.
For the benefit of the non-maritime mind, let me explain. The entrance to
Chinna Creek opening on to Clifton beach was blocked off, creating the
eastern backwater. Two reservoirs, the eastern and the western backwaters,
were engineered to be large enough to accommodate sufficient volumes of
water to allow an inward and outward flow which would provide a natural
scour and maintain chartered depths in the navigable channel, obviating
excessive mechanical dredging.
Any man who has dealt for the past fifty-two years with the port and the
Trust that operates it will affirm that:
For the first thirty-two years, when there was no political interference,
the Chairmen (chief conservators) of the Board of Trustees (conservators)
were appointed on considerations of merit and integrity, dedicated to
ensure, first of all, the safety and the conservation of the port. The last
such man of an era that started with Chairman Engineer William Bushby, was
my good friend Rear-Admiral Zahid Hasnain (1972-76). Zahid would not
oblige and was unceremoniously sacked by minister of communications
Oxford educated talented cousin Mumtaz Bhutto.
Thereafter, with political interference on the boil, merit gave way to
placidity and ability ceded to greed. The quality of the Chairmen appointed
deteriorated, as did the quality of Trustees. Corruption set in.
The first Chairman, appointed by the PPP in 1989 following the
democratisation of dictatorship, was Alim Akhtar Shah (Catastrophe) known
to have been charged in court with having forged his credentials, who was
later convicted. He was followed in swift succession by Rear-Admiral Akbar
Hussain Khan (Disaster), and Rear Admiral S.R. Hussain (Calamity). The
harm done to the port and its environs between 1989 and 1992 was ruinous.
Now to the crux of the matter: 75 acres of prime Port Trust land planned to
be reclaimed and yet to be reclaimed, on the Bath Island side of the Mai
Kolachi bypass.
In 1989, Alim Shah, in cahoots with the Sindh government headed by Qaim Ali
Shah, and the federal government, transferred or was coerced into
transferring the 75 acres to the Sindh Board of Revenue, enabling the
latter to carve the acreage into plots to be distributed to front men or
cronies. This he unlawfully did without the approval of his Board of
Trustees.
However, before the area could be physically handed over, or any
consideration agreed upon, or a sale deed executed, the federal and Sindh
governments were dismissed in mid-1990.
Vice-Admiral Ahmad Tasnim was appointed Chairman in 1992 and second
thoughts were generated about the proposed reclamation. At about the same
time, in December 1992, a news report informed us that 75 acres of port
land was being transferred/allotted to various cronies by the Sindh
government. Thereupon, Tasnim protested and in January 1993 Prime Minister
Nawaz Sharif directed that the 75 acres transferred (on paper) to the Sindh
government be returned (on paper) to the KPT.
Tasnim naturally thought that the matter was resolved, and was surprised to
receive a letter in December 1993 from a lawyer, Bashir Ahmed, seeking NOCs
to the transfer of plots of KPT land, falling within the 75 acres, by
certain clients of his. He made inquiries and found that the Sindh
government in October 1992 had indeed quite unlawfully and illegally
allotted/transferred/sold 72 of the 75 acres in acre-lots to 15 friends of
the nation.
A bewildered Tasnim sought advice. My advice was that the land should not
be reclaimed, the tidal flow should not be disturbed any further (as it
was, a lot of garbage and sediment had accumulated in the backwaters), and
that he should move the court and seek an injunction.
The Admiral was reluctant to take on both provincial and federal
governments, but the users were able to prevail upon him. I discussed the
issue with my lawyer, Makhdoom Ali Khan, who opined that the court would
indeed give an injunction and save the land.
The KPT engaged Barrister Makhdoom Ali Khan and a suit (No.240/94) was
filed in the Sindh High Court in April 1994. The defendants included the 15
friends of the nation.
But then Disaster again struck. Admiral A.H. Khan was once again
appointed Chairman on November 2, 1994, and almost immediately an abortive
attempt was made to withdraw the suit. It failed and Brigadier Muhammad
Hanif, General manager of the KPT for such affairs, wrote to their
Barrister on November 15, 1994, instructing him ... ..... to process the
case vigorously in the High Court.
On December 4, 1994, the suit was heard by Justice Ghulam Mohammed Hussain
Malik who was pleased to grant ad interim orders against defendants No. 6-
20, the friends, the illegal allottees.
But, on May 2, 1995, Makhdoom Ali Khan though on a winning wicket, was
instructed to withdraw the suit. A letter from the KPT Secretary and a
Board resolution were produced before the court with the withdrawal
application. The court dismissed the suit as withdrawn.
AH still chairs the Board and conducts the affairs of the Trust in what,
even under present circumstances, could be termed conduct unbecoming.
When he does wrong, the government-nominated Trustees and his officers are
openly told that he acts under the instructions of his boss (no one knows
who this is) and that they should follow suit or otherwise ....... He
encourages the Trustees to take trips at KPT expense on the pretext of
visiting European and Far Eastern ports, though many of them have never
visited nor have they the slightest clue as to what their own port and
harbour look like. Regular Board meetings on fixed dates are not held,
meetings are called at short notice preventing many members from attending.
The Trustees, whether they are interested or not, are never properly
briefed.
Port plots are allotted to Trustees at highly concessional rates. In June
this year when the last Board dispersed, each Trustee was presented with a
laptop computer (around Rs. 80,000 each) as a parting gift. A Trustee just
cannot be a beneficiary of what he holds in Trust.
The Estate Department of the KPT has been hard hit. This year, the Chairman
recommenced the process of handing over to the Sindh government 75 acres of
yet to be reclaimed land. Khan Mohammed Qureshi, Estate Manager, an old
hand, was under constant pressure to write notes he did not want to write;
he suffered a heart attack, was hospitalised, and whilst recuperating, his
portfolio was illegally and incorrectly transferred to his deputy, Zafar
Hussain Rizvi, who also refused to write as directed by the Chairman, so
the portfolio was arbitrarily transferred to another man. Rizvi and Khan
Mohammed are seeking redress in court.
When the 75-acre file arrived on the desk of Brigadier Hanifs successor,
serving Brigadier Javed Gulzar Ahmed, General Manager in charge of civil
works and estate, he categorically refused to recommend to the Trustees
that the land be transferred to the Sindh government. He saw no reason to
gift away a port asset, with a market value of around three billion rupees.
He was immediately sent on a months leave, which he did not want and
refused to take. His portfolio was transferred to another general manager,
pliant and obedient Rasul Baksh Rahu, who did what he was told.
Three unscheduled hurriedly summoned Board meetings were then called and
reportedly the 75 acres has once again been transferred to the Sindh
government. This is not the end of the story. The port users are
contemplating filing a writ and seeking an injunction.
One of the finest things Dawn has done is to print columns written by
Benazir Bhutto. It helps the people to assess whether her thinking is
juvenile, adolescent or mature. Her writings like those of others are
subject to criticism and comment. I refer Benazir Bhutto, to her column,
The power of mud (August 8). The 75 acres are not mud. They are for
real. Let her make her own investigation.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960817
-------------------------------------------------------------------
Deja vu
-------------------------------------------------------------------
Mazdak
AROUND this time of the year, all columnists and editorial writers worth
their salt reflect on the state of the nation, and lament over how we are
going to hell in a handbasket.
No Pakistani journalist has done so with greater lucidity or profundity
than Mazhar Ali Khan during the dozen years he was with The Pakistan Times
from Independence to 1959, when the paper was seized by Ayub Khans regime.
We are fortunate that a collection of his editorials from this period has
recently been published. A colleague from Lahore has quoted from one of
them at length in a piece last week; I shall draw from another, not so much
as a tribute to a journalist of total integrity and a man of great vision,
but as a reminder of how little things have changed in the Land of the
Pure.
Published on August 14, 1968, on the eve of Ayub Khans Decade of Reforms,
this editorial reflects not only the national sense of despair and
exasperation with our politicians, but also Mazhar Ali Khans innate
optimism. Forty years on, the first two emotions have been strengthened,
while the last one is in tatters. I hope readers will bear with me as I
feel Khan Sahib deserves a full hearing, specially by those too young to
have read his original editorials. (I must confess to falling into this
category, but only just).
. . . For almost a decade now, the political arena has been the safe
playground of men cursed with unlimited greed and gifted with limited
ability. Every year has been a year of crisis, and every season the season
of intrigue. It almost seems that the only stable factor in our political
life has been a constant instability. Governments have come and gone with
bewildering frequency . . .
Given this inbuilt instability, the economy was bound to suffer: Not
surprisingly in these circumstances, Pakistan has drifted steadily toward
economic ruin and political disaster; its agriculture languishes, its
industry falters . . . Falling production and rising prices combine to make
life increasingly [difficult] for the common man, while wasteful Government
expenditure, the vulgar ostentation of the rich few, and the widespread
corruption, add greatly to his bitterness.
But more than a keen observer of the national scene, Mazhar Ali Khan was a
committed socialist who saw the West ruthlessly exploiting and controlling
the Third World (a term that had not then entered the political lexicon).
Although this is no longer a fashionable world view, there are many today
who share his vision.
The editorial continues: Pakistans increasing economic dependence on
foreign aid has . . . been matched by its rulers increasing reliance on
western guidance and advice in formulating their policies . . . Pakistans
. . . policy of siding almost always with the West . . . has . . . damaged
(our) relations with the whole non-western world. On none of the issues
which really matter to Pakistan - with Kashmir heading the list - have we
received any sympathy or support from our Western friends . . .
Despite the writers disenchantment, his belief in democracy did not waver
and nor should ours. He concluded on this optimistic note: . . . The
only relief in this dismal prospect is provided by the assurance that
Pakistans first general elections will be held next year. . . It is quite
possible that, confused by the clamour of the political market-place, the
people will return to power many among those responsible for creating the
present mess. . . . But one would like to hope that, even in the first
election, the people will try to drive away from the seats of power all
those who have been guilty of neglect or ineptness or worse. . . . they
must realise that . . . in the affairs of the nation, tolerance of misrule,
of corruption and bribery, and patience in the face of denial of their
rights, are not virtues but weaknesses which sap the morale of the nation.
. .
Clearly, voters have not heeded this advice. The same set of corrupt and
inefficient politicians are returned to power in each election and we
have had five since this editorial was written. There are many influential
voices today who argue that this reveals the fundamental weakness of
parliamentary democracy as it has evolved in Pakistan. They ignore the fact
that actually, ordinary people have used their vote to try and obtain the
basic services they should be getting as a matter of right: roads,
electricity, schools, jobs and so on. Because the state has failed to
deliver, voters elect candidates who, in their perception, have a good
chance of getting elected, and once in power, will have the clout to
address their day-to-day problems. They do not care if the candidate is a
thug; in fact, this would go in his favour as he is likely to be more
effective. Thus, candidates tend to get elected because of their executive,
and not their legislative, ability.
To a great extent, this distortion helps to explain the lota syndrome, in
Pakistani politics. Apart from their personal ambitions and greed,
politicians need to stay on the right side of the ruling party if they are
to help their constituents and get re-elected. So they have no compunctions
about selling out to the highest bidder whenever horse-trading is in
progress. Not, of course, that there is much to choose from between the two
major groupings in terms of ideology or level of corruption.
Having heard a distinguished voice from the past, let us listen (briefly
this time, I promise) to an unknown one from our future. The following
quotes are from a 20-year old Pakistani students political science paper
for his college in America:
The changes that need to occur in Pakistan are so drastic in nature that
the present government can in no way implement them as it does not have the
political will to do so...The President would have to suspend the
parliament...This contradicts my political philosophy...The changes that
the President would have to make...would be to separate religion from
politics and the judiciary... make the Hudood Ordinances
unconstitutional... declare all religious parties illegal...negotiate with
the MQM...[and] make an active effort to ensure a peace accord between the
warring factions in Afghanistan...He should ensure that government funds
are not misused...and set a 25-year prison term for dishonest
officials....
The paper goes on to develop the young authors ideas on how to get the
economy going and how to check population growth. in fact, I have edited
some of his more extreme recommendations which include the liquidation of
many of those who use religion and politics for their personal gain.
As his father, I am appalled by Shakirs complete disenchantment with our
politicians and the whole political process. If his views reflect his
generations and I suspect they do then we could not have a more
damning indictment of what our leaders have been doing to this country. At
least Mazhar Ali Khan hoped that the checks built into democracy would make
it function effectively. For Pakistans youth, democracy is a system which
allows crooked politicians to hang on to power, and which therefore cannot
be redeemed.
But while I am horrified by some of Shakirs more extreme views, I am glad
to report that he received an A for the paper.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960819
-------------------------------------------------------------------
Is Nawaz Sharif really serious?
-------------------------------------------------------------------
Mohammad Malick
THE oppositions leap to the ultimate tactic of civil disobedience and
that, too, in the absence of any ongoing massive street agitation, has
raised more questions about the intention of those who wish to initiate it
than any hopes about the ouster of the Benazir government.
Traditionally, civil disobedience campaigns have proven the logical
culmination of a protracted public agitation and not the starting point of
one, and, therefore, the opposition pronouncement poses the question: does
Nawaz Sharif really mean it, or is it just another stalling measure to
avoid taking matters to a point of no return or one of diminishing returns
as far as his own personal political fortunes are concerned?
The dominant viewpoint in the federal capital tends to suggest the latter.
A former cabinet secretary, known for his incisive political analysis, had
this opinion to offer: Why should Nawaz Sharif rock the boat for
unspecified changes? He has suffered personal losses running into crores
during the last three years. Hes suffered personal traumas like the
manhandling of his father whom he revers as a living saint.
Hes seen his brother and nephew go to jail, and now the family can boast
of having gone to jail for democracy as well. With three years gone, that
leaves him with two more years of Benazir rule to contend with. Why should
he indulge in blind-turn politics?
The analysis continued: If things go as scheduled then 1998 should be the
election year, and the election fever would be gripping the nation from the
very first month. So that year should be counted out, leaving Nawaz Sharif
with the question of what to do in 1997. He realises, like almost all
political observers, that his best bet in ever returning to power lies in a
fair general election. Does he, therefore, rock the boat just for the sole
purpose of bringing down Benazir government and risk providing a ruse for
an intervention of the third kind, with the danger of his own exclusion
from any future power-structure, or does he bear out Benazir till hustings
time? It makes all the sense for him to wait out this last phase.
But, of course, there is also the dilemma of Benazir making a clean sweep
of the upper House if she is allowed to go on till March 1997, and this
perhaps is one of the major concerns of the leader of the opposition.
It is also being argued by certain quarters critical of the leader of the
opposition that the grudging teaming-up of Nawaz Sharif with an
unpredictable firebrand maverick like Qazi Hussain Ahmed and the subsequent
creation of an informal 14-party alliance may have been brought about by
the same desire of not allowing the system to go down in an unpredictable
manner.
This theory holds that by bringing together the unruly political mob in a
hastily assembled vehicle with himself secured firmly in the drivers seat,
Nawaz Sharif is trying to control the tenor and temperament of the anti-
government agitation and not allowing it to reach a feverish pitch as
desired by the Jamaat leadership. It is a fact that ever since the
formation of this alliance, the thrust of all opposition agitation has
remained confined to fearsome sounding strategies and painting of stomach-
churning doomsday scenarios rather than real action on the ground.
Even the much-touted public rallies plan, supposedly being envisioned as a
means of preparing the ground for the civil-disobedience movement, promises
to prove little more than what it really is: a string of isolated public
rallies.
These rallies would surely attract thousands of angry and disgruntled
ordinary voters, but whether they would suffice to inculcate the level of
intolerance and defiance required to implement a momentous decision like
civil disobedience is anybodys guess.
Add to that the fact that on the one hand the opposition is talking of such
extreme measures while on the other hand it remains divided over such basic
decisions as when to resign from the assemblies, if at all. As if all this
werent enough, rumours are rife about Oslo-like talks taking place between
Shehbaz Sharif and Asif Zardari, only in this instance Oslo is no farther
than the Faizabad residence of a prominent Muslim League leader. So far it
remains an unconfirmed piece of political gossip, but in Pakistan, rumours
have this uncomfortable habit of proving immature facts.
Fact or otherwise, but almost all allies of Nawaz Sharif are already
discussing this rumour about a secret rapprochement, or the possibility of
one, between the otherwise professed enemies like Benazir and Nawaz Sharif.
And the impression is hurting Nawaz Sharif more than anybody else.
The situation is fast approaching a time where even the staunchest
supporters are finding it increasingly hard to defend what his critics term
his dilly-dallying stance over the launching of a truly aggressive street
agitation. The time has now come where if Nawaz Sharif does not want to
marginalise himself politically then he must decide between leading his
troops into the streets or to the negotiating table.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
960819
-------------------------------------------------------------------
Who will clean the stables?
-------------------------------------------------------------------
Ayaz Amir
AN idea which is receiving powerful support from some elements in the Press
these days is for the present government to be sent packing and for an
interim set-up to take its place for a period which may extend up to two
years. During this period this interim set-up should carry out urgently-
needed reforms and only after the national stables have been cleaned should
elections be held.
The rationale behind this proposal is that the country needs a new
beginning because if the present rot in the affairs of the nation is
allowed to continue, elections now or even after two years would be of
little use. They would only lead to the replacement of the present corrupt
order by another dispensation which if not equally corrupt would not be
much different from it in its essential features. In recent days Mr Irshad
Ahmed Haqqani, one of the countrys most persuasive columnists, has been
advancing this idea in the columns of Jang. The Friday Times, which carries
a powerful editorial voice, has also been advocating the benefits of mid-
term surgery.
Incidentally, it is perhaps not out of place to mention the circumstance
that both Mr Haqqani and the Friday Times began as cautious admirers of Ms
Bhuttos ruling circus, in the process often detecting the presence of
virtue and sometimes of brilliance when more near-sighted observers could
see nothing. That Ms Bhutto has succeeded in forfeiting the support (and
well-meant support, let me hasten to add) of such well-wishers whose word
carries weight in the national Press, as opposed to the propaganda drivel
of partisans whose dishonest views only excite ridicule, is a measure of
the distance she and her government have travelled since their second
coming in 1993.
It goes without saying that in advocating mid-term change the proponents of
this view put a burden on the shoulders of President Farooq Leghari because
if he is not of a mind to use the constitutional powers at his disposal how
is the government to be sent packing? The only other instrument of change
is the army but having been down this road many times before it is hardly
surprising if there is no voice rash enough to press for its intervention.
So those quarters which are counselling the need for change, implicitly if
not in so many words, are pinning their hopes on the President.
But in doing so they may be putting an unconscionable weight on his
shoulders because, apart from misgivings sounded in private, there has been
nothing in the Presidents conduct so far to justify any hopes of decisive
action on his part. It was a sound instinct of self-preservation which
goaded Zia to get rid of Junejo in 1988. Animus and blind prejudice rather
than a concern for the national interest drove Ishaq to dismiss Benazir
Bhutto in 1990 and Nawaz Sharif in 1993. Can it be said of Leghari that he
has similarly powerful motives to strike at his own party, with whose
survival his own interests are intertwined, and to make things more
favourable for Nawaz Sharif with whom and with whose party he can have
little emotional sympathy?
It can certainly be argued that the purpose of a change at this juncture
will not be to make things smooth for Nawaz Sharif or anyone else but to
carry out a cleansing of the political scene as a whole, a process which
will encompass the opposition as much as it will the ruling party. But the
execution of such a plan presupposes two qualities on the part of the
President: the vision to understand its necessity and the will to carry it
out. Can even the most fervent admirers of the President honestly bring
themselves to say that he is possessed of these qualities? If, as is
likely, they cannot, then how realistic is it to rest such tall
expectations on such weak foundations?
That the country is in dire straits and that two more years of what it is
now undergoing will leave it in a still more ruinous condition is something
that has gained widespread currency as has the feeling that urgent measures
are called for to arrest this trend. But what precisely must be done to set
the nation on a new course is a question which, if at all it has to yield a
practical answer, must be mindful of existing political realities. Of these
realities none is more striking than the poverty of alternatives before the
nation at present. Yes, change is desirable but how is it to be brought
about? The army must not intervene; the president will not intervene. If
this situation lasts we are left saddled by our present riders, the loud
clamour of alarm bells notwithstanding.
True, the Press enjoys a position of influence today which it has not done
since 1958. If there are effective voices in the Press which advocate a
particular policy or a particular course of action this is bound to leave a
residue of influence on the newspaper-reading public of which, let us not
forget, the political class is also a part. But the Press is a trumpet or a
loudspeaker. It is not a sword or a battle-axe (except, of course, in a
metaphorical sense). It can advocate particular solutions but it has
nothing at its disposal to implement them. The task of implementation rests
with other actors on the political stage.
Nor must we forget that in Pakistan army chiefs and presidents have never
performed their interventionist roles in a vacuum. Even the most ambitious
or unscrupulous of them have profited from particular situations. The
excuse for the 1958 coup lay in the political instability and the
parliamentary game of musical chairs of the previous decade. For the
military take-over in 1969 the excuse lay in the agitation which had
erupted against the Ayub regime. In 1977 the army moved against Bhutto
after six months of civil strife. Of the dismissals of Junejo, Benazir
Bhutto and Nawaz Sharif mention has already been made. Unless something
drastic or compelling happens now like a civil agitation strong enough to
bring the wheels of national life to a halt or an economic breakdown with
similar consequences it is stretching the bounds of probability to think
that at this juncture history is set to repeat itself or that the
Presidency as occupied by Farooq Leghari will transform itself dramatically
into an interventionist fire-chamber.
Even otherwise, by what constitutional or legal manoeuvre do we get an
interim period stretching beyond ninety days? Obviously, the Constitution
is not going to be amended to bring this about. That leaves a sanction from
the Supreme Court but the Supreme Court, as the law now stands, is in no
position to give a sanction of this sort unless it is to break new judicial
ground by taking refuge once again behind the Doctrine of Necessity the
same doctrine whose application in the past has served to justify the
imposition of dictatorial rule in the country.
Another question also arises. Even if for the sake of argument it is
assumed that a constitutional via media is found to get rid of the present
dispensation and establish in its place an interim order charged with the
responsibility of cleansing the Republic, from where are we going to get
the high-minded reformers with both the ability and the integrity to carry
out this task? And who is the philosopher-king who will choose these
reformers? A revolution or a process of reform after all is only as good as
the men and women who carry it out. Just as it is a chimerical idea to
build a marble palace over a bed of manure, it becomes a fanciful notion to
talk in terms of a great reform programme when we have no clear idea as to
who the architects of this grand design are going to be.
To say as much is not to dismiss the necessity of a thorough spring-
cleaning in Pakistan but only to point out the matching necessity of
keeping all such discussions firmly anchored in political reality. Our
problem in any case is not simply the corruption of the political class but
the corruption of the entire elite from which our governing class is drawn.
Bureaucrats and public representatives, captains of war and captains of
industry all share equal responsibility for the mess in which the country
finds itself.
It would be another matter if instead of quixotic saviours (of whom we have
seldom had a shortage) there was a revolutionary party waiting in the
wings. But Pakistan can count on no such luck. With all their gross
imperfections, the alternatives we have are those that we see before us.
Whether we like it or not it is only these that we can shuffle and
reshuffle. Ms Bhutto is not only in power. She also has the mandate to rule
for five years. The only force that can cut short this mandate is not the
President exercising his lonely judgement or even the army stirring itself
in the name of the national interest (because in the past we have had ample
evidence of the imperfections of these judgements) but the power of the
people. If the people rise to express their discontent then so be it. But
if they choose to take what is being done to the country lying down, is any
other force entitled to usurp their prerogative?
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960822
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Surrey back with a vengeance
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Mohammad Malick
ISLAMABAD: It looked like an absorbing courtroom scene from the hit drama
series, L. A. Law.
Ashen-faced treasury members listened in rapt attention as Nawaz Sharif
presented one circumstantial evidence after another to establish a link,
even if indirect, between the ruling couple and the famous Surrey estate.
Both the prime minister and her spouse have been vehemently denying any
involvement with the estate, right down to the point of claiming that they
had been unaware even of the existence of the property till after the
breaking of the scandal. But judging from the telephone records of the
British telephone company presented by the leader of the opposition,
someone sitting in the heart of that very mansion had surely made it a
point to call some of the closest friends of the investment minister, Asif
Zardari, to have fairly long chats with them.
One call has also been attributed to a mobile phone with a restricted
number, which the opposition leader claimed had been in the personal use of
Mr Zardari. One can only wonder why someone would bother going to such
extremes and pay for long distance calls to people who had no interest in a
particular piece of property.
An interesting feature of these calls, as claimed by Mr Sharif, is that
almost all the numbers called are linked, directly and indirectly, to one
of Mr Zardaris closest confidantes, Javed Pasha.
According to Mr Sharifs allegations, telephone number 01428-685-6072 was
set up at the Surrey mansion, and all the claimed calls were made from that
phone. Giving details of calls made between April 5 and April 19 of this
year, he asserted that the calls were made to 042-5864260 (owned by DC
Pager System, a Javed Pasha company), 021-5894172 (of the brother-in-law of
Mr Pasha who happens to be a director of Shaheen TV, of which Mr Pasha is
himself the chairman), and 0351-11880 (of the chief executive of NTM, whose
chairman Tahir A. Khan publicly boasts of his friendship with Mr Zardari).
Then, the leader of the opposition presented an unlisted mobile number,
0300-550243, which had been allotted to DC Pager but was claimed to be in
the personal use of Mr Zardari. Two calls were made to this number on April
19, Mr Sharif asserted.
Judging from the quality of the oppositions information or disinformation,
however, it was evident that the services of a professional detective
outfit had been hired. Party insiders claimed that the spadework and hiring
of the detectives etc. had been done by Ishaque Dar, who incidentally is
still in London and finalising the next episode of what is being promised
to prove the epilogue of this corruption serial.
Nawaz Sharif started off by giving the item wise breakdown of the 42
cartons packed away in large wooden cases and weighing 3.5 tonnes that had
been sent to Britain from Bilawal House, exempted from all customs charges
and flown free by the national carrier.
Then spoke of another shipment, weighing 5,419 kgs, and dispatched from
Lahore by one Sarosh Yaqub Mehdi and booked in the name of a man identified
as Paul. This shipment lay unclaimed at Heathrow airport for weeks with no
Mr Paul coming forward to claim it.
Quoting shipment bills and other documents, Nawaz Sharif claimed that Paul
Keatings home address is the same as shown in the airway bill of the
unclaimed shipment, and that he was the director of a Javed Pasha-linked
company, Grant Bridge.
The day before, the opposition was clearly unimpressed by the governments
decision to constitute an inquiry commission to identify big loan
defaulters while the treasury benches wanted a pat on their backs.
Iftikhar Gillani hit the nail on the head when he expressed amazement that
a fact finding mission was required to unveil the identities of the big
players who had been sitting mum over Rs123 billion of the ordinary Joes
hard-earned money.
Every bank and DFI has precise updated information regarding its loan
exposures and current fiscal health, and it does not require a high profile
and awesome sounding inquiry commission to ferret out this information
about the criminals masquerading as defaulting businessmen.
Mr Gillani had a simple solution for this lot, Jail without Bail as he
put it.
And if anybody thought it to be an impossible task, Iftikhar Gillanis
citing of a World Bank report should come, ironically, as a relief. This
report has claimed that a mere 25 business houses/families could wreak
havoc on the entire economic system of Pakistan. Twisting the same argument
around, one could argue that by making these 25 big fish clear the economic
waters that they had sullied, Pakistans major economic ills could well be
cured. The recovery process must start from somewhere, and 25 seems just
the perfect manageable figure.
Listening to the minister of state for law, Raza Rabbani, however, it
appeared that the announced commission would mean the death knell for the
financially corrupt elite.
With all due respect to his impressive oratory skills, the minister would
have done well to explain just how in heavens did he expect this commission
to conduct fair and honest investigations. He tried instilling the fear of
god by insisting that the commission would be manned by men of unquestioned
integrity. Granted, but what about the inherent limitations imposed by the
very act under which this commission would be constituted.
The commission would be formed under the Pakistan Commissions of Inquiry
Act 1956, which clearly stipulates that its members would be deemed to be
public servants. May be Raza Rabbani knows of any public servant who is
free of the incumbent governments influence because the remaining 120
million people this corrupt system surely do not.
Asfandyar Wali had his point when he pointed out that every time a
government desired an issue to be swept under the carpet, it formed a
commission. Naming the Hamoodur Rehman Commission, again headed by a man of
unquestionable integrity to borrow Raza Rabbanis phrase, he rightly
lamented that no one knew a word about that commissions finding till this
day.
Quite a few treasury members could be heard agreeing to the oppositions
point of view that the government knew all that it needed to know about the
loan defaulter mafia, but what it lacked was a sincere will to take action,
and not the information.
The bank reports are there, the list prepared by the Moeen Qureshi
government is there if only the government was serious about its professed
plans.
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960822
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Pakistan confident as final Test starts today
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Qamar Ahmed
LONDON, Aug 21: Unlike the last series in 1992, Pakistan arrive at The Oval
with a 1-0 advantage in the series. Psychologically they are a lot more
confident for the decisive third and final Test than they had ever been on
a tour of England. The mood and their intentions of a positive approach to
go in the final Test starting tomorrow (Thursday) was quite clear while
they were in the nets for the pre-match practice session.
Mobbed by the media and the autograph-hunters they paid little attention to
what was going around them. Everyone had their turn at the nets. The
batsmen and the bowlers all appeared lively and vivacious in their workouts
for the big event and they all realise that if they sign off with another
win, they will be hailed as the best outfit that ever came to England from
Pakistan.
The captain, Wasim Akram, maintains that if there is a result at The Oval
it will most likely be in favour of his team. We have the right blend, we
are one match up and also we are in form. There is very little chance of
anything going drastically wrong.
In the county games and in the last two Tests we have shown that we have
the capacity to recover and absorb the shock, says Wasim.
There is a lot of runs in this Oval wicket and our batsmen have now a lot
of experience on this tour; so there is no reason why we are not able to
make a good score, the Pakistan captain says.
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960819
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Majid terms Council decisions principled
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By Samiul Hasan
KARACHI, Aug 18: The Chief Executive of the Pakistan Cricket Board (PCB),
Majid Khan, dismissed claims that the replacement of the National Selection
Committee was against the constitution of the PCB.
Who says it is against the constitution? Majid asked when he was
contacted at his Lahore residence.
It has been done according to the constitution and the Executive Council
has done it, Majid added.
When Majid was asked that the Council never had the authority to replace
the Selection Committee and it was the General Body which had been vested
powers by the constitution, Majid said: It is not so. It is the Executive
Council which can take such decisions.
Majid emphasised that it has been a unanimous decision of the Executive
Council.
However, well placed sources said that two councillors, Nusrat Azeem and
Yar Mohammad Solangi, had objected to the change giving reference of the
constitution and later recorded their note of dissent in the minutes of the
meeting after the decision was made.
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960821
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India beat Pakistan to win Under-15 World Cup
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Qamar Ahmed
LONDON, Aug 20: India had an emphatic four-wicket win over Pakistan in the
Lombard Under-15 World Challenge. Chasing 223 to win, India cruised to
victory with 3.2 overs to spare.
The hero of Indias well-deserved win in the juniors tournament was their
captain Reetinder Sodhi who scored an unbeaten 82 to steer India to a
memorable victory at Lords. Reetinder Sodhi struck six fours in his match-
winning knock to destroy any aspirations that Pakistan youngsters had of
winning this competition. This was Pakistans first defeat in the contest.
A crowd of 8,000 watched the days play which was also attended by former
Test cricketers and the Pakistan team which visited the ground when
Pakistan were batting.
Pakistan bowlers showed bad form and fielded poorly which could be gauged
from the fact they conceded 38 extras of which 28 were wide balls. Jan
Nisar Khan bowled 12 of them.
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960820
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Hanif wants new and strong hockey side to be raised
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Walter Fernandez
KARACHI, Aug. 19: The Pakistan Hockey Federation (PHF) without losing time
should embark on the task of putting its house in order and top priority
should be given to prepare a worthy squad to defend the World Cup in about
two years time, said Hanif Khan, former Pakistan Captain and Coach in an
exclusive interview to `Dawn here on Monday.
To begin with, the PHF should axe about six to seven members of the squad
that performed dismally in this years Atlanta Olympic Games, having placed
sixth the lowest ever position since the country first participated in
the 1948 London Olympic Games, opined one of the greatest inside-lefts
modern hockey has ever seen and the man who has over 21 years experience on
artificial surface.
When I was the coach of the team under the stewardship of another former
Pakistan Captain and Olympian Khalid Mahmood during the 1993 Kaula Lumpur
Champions Trophy, where Pakistan had staged a below average show, on return
home I had called for the sacking of six experienced stars on the grounds
that they were well past their prime, stated Hanif Khan.
Because I was of the opinion that with two years in hand before the 1996
Olympics, there was sufficient time to groom a squad capable of regaining
the Olympic gold medal after 12-long years. But the PHF hesitated at then
and let the status quo remain, added the former Pakistan captain.
Then with Pakistan managing to regain the Champions Trophy at Lahore after
14 years in early 1994 and the Sydney World cup after 13 years, in December
of the same year, with freak victories in penalty stroke shoot-outs, the
players in the twilight of their careers were allowed to hang on till the
Olympics and the ultimate result is known to all and sundry, explained
former Olympian Hanif Khan, a member of the last Pakistan Olympic gold
medal winning team in 1984 at Los Angeles.
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960819
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Pakistan win U-21 hockey thru golden goal
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Sydney Friskin
VUGHT, Aug 18: Pakistans crop of young hockey players laid themselves a
solid foundation for the future by winning the VolvoTrophy in a four-nation
tournament for players of under-21.
In the final Pakistan defeated Germany 2-1 after extra time, having beaten
them by the same score in normal time during the round-robin to build a
team for the future with an eye on the Junior World Cup at Milton Keynes in
September 1997.
After a blank and evenly-fought first half Pakistan opened the scoring in
the 47th minute with a field goal by Haider Hussain. The match seemed to be
in Pakistans grasp until the 61st minute when Germany hit back with a goal
from a short corner by Max Klink who has had experience of English first
division hockey.
Both sides strove mightily for the match-winner but full time arrived with
no further score. The match went into a sudden-death period of extra time
which ended with Ali Raza scoring what is now termed as the golden goal
in the ninth minute. So ended an exciting match.
Dawn page