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DAWN WIRE SERVICE
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Week Ending : 24 October 1996 Issue : 02/43
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War declared against corruption, says PM
Extra-budget steps to yield Rs40bn
People react sharply to new taxation measures
Petroleum prices raised by 10pc
Murtaza Bhuttos death and trial
Islamabad New City project : People should be cautious
---------------------------------
Pakistan fails to get IMF pledge
Foreign loan payments may exceed $5bn
Rupee lowered by 8.5 per cent against dollar
Change of govt can lead to good investment climate
Farm tax at long last?
Spotting tax evaders need of the hour
KSE 100-share breaks 1,400-point barrier
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Maa ki hai2 Ardeshir Cowasjee
A passion for the truth Ayaz Amir
The way we compute the crowds Hafizur Rahman
Devaluation, what devaluation? Mohammad Malick
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Proper place, priority for sports wanting
Hockey change-over and the problems to be tackled
Tennis: responsibility of PTF and affiliated units
World Open squash to be efficiently staged
Hasan Raza may make Test debut
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961021
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War declared against corruption, says PM
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M. Ziauddin
ISLAMABAD, Oct 20: Immediately after delivering an all- encompassing 90-
minute speech in the National Assembly , prior to the introduction of an
anti- corruption bill on Sunday, a confident -looking prime minister told
Dawn in her chambers that she had declared war against all kinds of
corruption.
Reiterating high points of her speech, in the company of PML(J) chief Hamid
Nasir Chattha, Prime Minister Benazir Bhutto said with a broad smile that
she felt she had taken the wind out of the sails of the opposition by
offering herself as the first case for accountability under the proposed
new law. Mr Chattha agreed with her completely. He also praised her for
offering immunity to the leader of the opposition and thought she had
scored a political point thereby.
The prime minister said she was fed up with the never-ending but
unsubstantiated stories of alleged corruption involving her and her husband
and wanted the matter to be settled once and for all.
She explained that special prosecutors, mentioned in the proposed law,
could even be expatriate Pakistani lawyers of high repute, having no axe of
their own to grind.
She said that because of polarisation in the country, lawyers of integrity
like Dorab Patel had become extinct and, therefore, she thought qualified
special prosecutors of high integrity would have to be imported to try
cases which would be referred to the proposed parliamentary commission on
eradication of corruption.
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961023
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Extra-budget steps to yield Rs40bn
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Sabihuddin Ghausi
KARACHI, Oct. 22; The Governor of the State Bank of Pakistan, Dr Muhammad
Yaqub, on Tuesday presented a package providing for a heavy tax-loaded
second wholesome budget to raise additional revenue of Rs13 billion and
generate savings of Rs27 billion Rs20 billion by cutting down on
development programme and Rs7 billion by applying an economy cut on current
expenditure. The package also pushed dollar exchange value up by 8.5 per
cent from Rs36.97 to Rs40.12.
Speaking at a Press conference here on Tuesday he also announced a 3 per
cent increase in the SBP 3 Day Repo Rate against Short Term Federal Bonds
(STFB) and Federal Investment Bond (FIB). The new Repo Rate is 20 per cent
per year as against 17 per cent.
For the first time, a State Bank governor announced the fiscal measures,
which Dr Yaqub said he was doing on the instructions of the prime minister
who wanted him to unfold the monetary and fiscal measures of the package.
She did not want announcement of monetary measures in Karachi and fiscal
measures in Islamabad, he said.
Identifying it as Economic Stability and Reforms Package, Dr Yaqub
claimed that it was not sponsored by the International Monetary Fund (IMF)
but developed under the direct guidance of the prime minister without
touching the budgetary allocation for national defence.
They accepted this package as the basis for the implementation and to
carry forward the Standby Arrangement, the SBP governor informed newsmen
while referring to his consultation with the IMF and World Bank officials
in Washington and added that its successful implementation will lay the
foundation for a shift from Standby Arrangement to long-term Extended
Structural Adjustment Facility (ESAF) from next fiscal year.
He announced that an IMF team would reach Pakistan this weekend for
documentation of the Standby Arrangement to review the implementation of
the package reforms. The team, he said, would quickly prepare the staff
report and present it to the IMF Board meeting next month.
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961023
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People react sharply to new taxation measures
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Dawn Report
KARACHI, Oct 22: Consumers representing various economic groups were
shocked and unanimous in slamming the fiscal measures announced in an
unprecedented manner by the State Bank Governor on Tuesday.
Prices of pulses, sugar, powdered milk, petroleum products, and other
essential items instantly increased as was the case with medicines.
The general public was agitated and blamed the civil and military rulers
for the present state of affairs. They were of the view that there was a
need for a drastic cut in non- development expenditure.
Dr Azra Talat Sayeed, research director of Pakistan Institute of Labour
Education and Research, said that under the present economic conditions
nobody exactly knew where the present situation would lead to.
She said: Ours is basically an importing country, and the present
devaluation would result in an overall price spiral which would seriously
affect the majority in this country who earn a low income. These people
constitute 60 per cent of our population.
She said in Karachi 40 per cent of the population live in kachchi abadis
and of these 20 per cent live below the poverty line.
Kulsoom Begum was of the view that she had already closed down her social
welfare project because of the budgetary gap in the organisations
activities, which could never be bridged under the given economic
situation.
Mrs Nabeela Akram, who generates around Rs 6,000 per month by running a
small tailor shop said that only a few month ago she had to shift her two
children from a reputed English medium school to an ordinary one for she
was not able to pay their fees. I am sure with the new taxation and
increase in the cost of living I shall have to withdraw at least one of my
three school going children from the school, she lamented.
People at the market places generally held corrupt politicians, bureaucrats
and business tycoons as being responsible for the perpetual pressure on the
economy. Many expressed the view that time had come when the nation must
think of brining a drastic change in the system.
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961023
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Petroleum prices raised by 10pc
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By M. Ziauddin
ISLAMABAD, Oct 22: The government on Tuesday increased the prices of
petroleum products by 10 per cent as pass-through of the rupee depreciation
of 8. 5 per cent against the dollar, announced earlier in the day.
This is the second increase in petroleum prices this month. Earlier, on
October 7, the prices were increased by an average of 5 per cent on the
plea that international oil prices had gone up.
And in the current financial year, this is the third increase as, on August
20, prices of some of the petroleum products were increased apparently for
no rhyme or reason.
The government started the current financial year with an insignificant
decrease in petroleum prices on July 22 , which seemed to be a follow- up
to another similar decrease in these prices on June 12.
With the latest increase of 10 per cent, not only the advantage of the
earlier decreases have been wiped out but an average of 20 per cent
increase in the prices of petroleum have also occurred since June this
year.
The new (old) prices of gasoline are as follows: Motor Gasoline (regular) -
16.51(15.85) and Motor Gasoline 17.6337(16.9584).
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961018
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Murtaza Bhuttos death and trial
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Kunwar Idrees
Observing the events of today and recalling the past years as a magistrate,
I get a sad overwhelming feeling that Mr Murtaza Bhuttos killers will
never be caught and punished. Look at the facts which give rise to this
feeling:
- The alleged killers are also the complainants.
- The police has refused to register the FIR giving version of the incident
from the side of Murtaza, Ashiq Jatoi and the other five killed.
- The trial, whenever it takes place, would be of their guards who escaped
death for causing injury to the policemen who intercepted them, obstructing
public servants in the performance of their duty and a host of other
offences. Had Murtaza by miracle survived the six bullets pumped into his
body he too would have been an accused.
- There are no eyewitnesses other than the members of the police force or
the surviving companions of Murtaza. The former will inevitably support
their own version and the latter will be standing in the dock as accused.
- The most crucial witness, Inspector Haq Nawaz Sial, who could have belied
the prosecution story under the stress of cross- examination died in
mysterious circumstances within days of the incident. No one has been
arrested or charged with his murder despite the protestations of his family
and the medical report belying the suicide theory.
- Contrary to the police version of firing in self-defence, the prime
minister has alleged it was a conspiracy to kill her brother, and yet in
the same breath she has excluded from the conspirators the senior
superintendent of police who admittedly directed the whole operation from a
close but safe distance.
Currently the focus is on the judicial enquiry and not on the crime and
hauling up its perpetrators. Even if the police versions of firing in self-
defence were to be accepted, the important point to the determined would
remain whether the force used was proportionate to the threat posed. By the
evidence published, even if it were to be fully relied upon, it was not
Seven men were mowed down in return for bullets grazing the thigh of one
police official and heel of another. Surely if Murtazas escort fired first
with automatic weapons it would have caused a far more serious damage. Thus
even the opportunity of proving that the force used was excessive even if
it was used in self-defence is being denied to the aggrieved party for the
users of the force will not be on trial.
The wives of Murtaza Bhutto and Ashiq Jatoi have done to the High Court
seeking direction to the police for the registration of its FIR against the
policemen for murdering their husbands and five of their escorts. There
Hafeez Pirzada with his fine brain and fat fee will argue for days on end
while the widows evidence with all its inherent weaknesses will continue
to weaken further because all those who could possibly be accused of murder
or exceeding the right of self-defence would remain free and in positions
of authority.
Almost a month to the gruesome tragedy which grieved all, friend or foe,
and shook the government to its foundation the judicial tribunal is yet to
be constituted. The terms of enquiry if drawn have not been declared yet.
But one thing is obvious: it will be long drawn out and contentious
proceedings and while it lasts the trial whether of the first set of
accused - Murtazas surviving men or of the policemen, if the widows
plea in the High Court succeeds, will not proceed. Meanwhile even the
remnants of the evidence that remain too will disappear. Whatever the
judicial enquiry might bring out it will not convict anyone.
Keeping politics aside, in the circumstances where seven men got killed by
firing, fairness demands that the trial should proceed on the basis of
murder. In the course of the trial the police can adduce evidence to show
that the firing was in self-defence and the force used was the minimum
necessary to save their own lives. Compelling the widows to go to the High
Court to establish this basis of trial also brings to ridicule the prime
ministers public allegation that the death of her brother was the result
of a conspiracy. Whether her allegation is right or not can be established
only through a murder trial and not by settling down with the self-defence
theory. Historically also whenever someone is killed by violence, unless
the death is undoubtedly accidental, as in a road fall or in traffic
accident, the plea of self-defence is vindicated through trial for murder.
The known circumstances make Murtazas case least eligible for departure
from that established practice for our criminal law.
Another important aspect of impartial investigation and a prompt and fair
trial is restoring public confidence in the law enforcing authority to the
degree it can be in the all pervading cynicism. When the brother of the
incumbent prime minister and brother-in-law of former one are shot dead by
police in the safest area of the city what becomes of the ordinary mortals
who constantly live on the edge of disaster is a question dominating all
minds.
The Clifton deaths are but a ghastly manifestation of the demoralisation
and brutalisation both of the society and authority under Zias long
dictatorship and since its demise under series of faltering, corrupting
elected governments. The State has been reduced to a fief. This tragic
moment should be used to return to the rule of law, and not smother it
further under orchestrated pleas of self-defence. Curses, they say, like
chickens come home to roost. They have once. They should not again. Wracked
by violence and conflict the country needs peace and reconciliation.
In these grieving moments of his tragic death an irresponsible thought
nevertheless arises whether the country has been spared another turbulent
chapter in its troubled existence.
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961024
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Islamabad New City project : People should be cautious
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Bureau Report
ISLAMABAD, October 23: The Senate Standing Committee on Housing and Works
has warned the general public to take extra care while investing in
Islamabad New City project.
The committee after minutely studying the feasibility and practicability of
the project in its last meeting concluded that the project management
expect for alluring expatriate and collecting huge sums of money from them
have done nothing on ground to develop the project as promised in the
brochures, Chairman of the Committee Brig (Retd) Malik Muhammad Hayyat said
in a statement on Wednesday.
He said the committee at its next meeting would review the whole project
and would also summon the project managers to obtain a briefing on the
progress made by them.
He said the committee was of the view that the management instead of
developing the scheme had been lavishly spending the money obtained from
small investors.
Malik Hayyat told Dawn that the land acquired by the developers of New City
was in bits and pieces and they had done no demarcation or set up a fence.
He said thousands of people were living in the project area who were not
ready to sell their land. It might take them a century to acquire the
total area required for developing the project, he said.
He said the area as shown on the maps should be at least four miles in
length and two to three miles in width.
He said they had claimed to bring in foreign investment and technology to
under take such a huge project but no foreign investment or the technology
has come in.
The newsmen would also be invited to attend the next meeting in which the
developers would be summoned to give a briefing on the progress of the
project. He called upon the newsmen to let the people know about the facts
of the project so that they would not fall prey.
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961020
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Pakistan fails to get IMF pledge
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Shaheen Sehbai
WASHINGTON, Oct 19: Pakistan on Friday succeeded in persuading the IMF to
urgently send a mission to Pakistan on Oct 24, but a joint statement
released after the talks confirmed that Islamabad would have to implement a
number of "prior actions" before any commitment for release of the
suspended $600 million standby loan was made.
The limited success for top Pakistani negotiators came at the last moment
as they desperately pleaded that the IMF urgently dispatch a mission and in
return they agreed to meet all the necessary requirements which would
include immediate announcement of a mini-budget that would implement some
of the conditions laid down by the Fund.
An 80-word joint statement released by the embassy of Pakistan after
intensive talks on Friday, extended several times before the Pakistani
delegation left for the airport straight from the IMF headquarters,
indicated the IMF had put in place a schedule comprising several stages
before the Fund could consider the release of the money.
It said: "An agreement has been reached between the Pakistan delegation and
the staff and management of the IMF on stabilisation and reform policies.
"In light of this, a mission would arrive in Pakistan on October 24 to
finalise a letter of intent, with a view to completing the review under the
stand-by arrangement.
"These 80 words mean that Pakistan has conceded to take a number of steps
before the IMF mission reached Pakistan and these would be tough, bitter
measures," an IMF expert told 'Dawn.'
The expert explained that the "agreement" which the two sides had mentioned
in their statement was on the reform policies that need to be adopted and
it should not be misconstrued or mis-interpreted as an accord for the
release of any money to Pakistan.
He noted that unlike the past when the IMF would hold discussions and
instantly agree to sign the loan, this time Pakistan had been asked to go
through a series of steps before the IMF begins considering the stand by
loan review.
"The key two words in this joint statement are 'prior actions' and this
clearly means that the IMF had told Pakistan government that unless these
measures were 'not just announced' but 'properly implemented', IMF would
not be proceeding any further with the loan talks," the IMF expert said.
"Once the Fund was satisfied with the prior actions and agreement was
reached on the letter of intent, only then the review of the stand by loan
would begin and then the mission would report to its board whether the loan
programme should be approved," the expert said.
In essence the IMF has stuck to its demands that Pakistan must show "by its
deeds" and not "by its words" what it could achieve to satisfy the IMF
conditionalities before any loans could be approved.
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961021
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Foreign loan payments may exceed $5bn
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Sabihuddin Ghausi
KARACHI, Oct 20: Pakistans foreign exchange payments exceeded the
staggering figure of $4.2 billion in 1995-96 for servicing and amortisation
of long, medium and short-term liabilities.
Banking circles predict escalation in the foreign exchange payments this
year to service and amortise the interest and principal amounts of long,
medium and short-term foreign debts because of rise in short-term
borrowings at commercial rates in the current fiscal year.
It could go up to $5 billion in 1996-97 if the trade gap is not contained
below $3 billion level, a senior banker said.
According to these sources a sum of about $2.2 billion was paid during
1995-96 on account of servicing the interest and amortisation of principal
amounts of short and medium-term liabilities which are not reflected in the
budget.
While about $2 billion were paid to amortise the principal amounts for the
short and medium-term liabilities over $300 million were paid on account of
interest accrued on these liabilities.
Foreign exchange payments of over $4 billion to service the foreign loans
in 1995-96 constituted almost 45 per cent of the total foreign exchange
earnings amounting to $8.6 billion.
Even if the exports achieve the $10 billion target in 1996-97 which
appears pretty difficult to achieve, the total foreign payments expected to
be made at about $5 billion would be exactly 50 per cent, a financial
expert said and believed that by all standards it was a very alarming
picture.
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961023
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Rupee lowered by 8.5 per cent against dollar
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Staff Reporter
KARACHI, Oct.22: The Governor of the State Bank of Pakistan, Dr Muhammad
Yaqub, on Tuesday announced a 8.5 per cent downward exchange adjustment in
rupee pushing the dollar up to Rs40.12 from Rs36.97. He also sounded a
stern warning to money changers blaming them for rumour-mongering and
speculation about devaluation.
I am having a very critical look at the role of money changers the SBP
governor remarked at a Press conference here. He, however, did not
elaborate on the action he intends to take against the money changers.
The downward adjustment in rupee value with dollar has been made in the
wake of violent kerb trading of dollar in the open market during last 48
hours, when rupee fell to a new low at Rs40.55 a dollar on Monday amidst
strong reports that dollars were just not available. Strangely, many
leading money exchangers were predicting a downward adjustment of 8.5 per
cent in rupee value within a day or two, a local foreign exchange dealer
said.
However, Tuesdays decision to adjust dollar exchange value apparently did
not bring any respite to kerb trading as the dollar was reported to have
been traded at over Rs43 in the early morning session when greenbacks were
scarce in the market. Finally, the dollar ended at Rs42.62 in buying and
Rs42.70 in selling showing a difference of over Rs 2.50 a dollar, enough to
cause worries to the monetary authorities.
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961024
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Change of govt can lead to good investment climate
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Staff Correspondent
WASHINGTON, Oct 23: A move by President Leghari to dismiss the Benazir
government and appoint a caretaker regime of experts might lead to more
responsible taxation and spending policies and return the focus to what
could be a relatively good investment climate, the authoritative Wall
Street Journal said in a report published on Wednesday.
In a detailed report on Pakistan's latest mini-budget which it called
"moves to treat economic ills," the paper said the new fiscal restraints
were not likely to satisfy disgruntled businesses.
The report was filed by Timothy Mapes of the Ap-Dow Jones News Service and
was published with a chart showing the slide of the Pakistani rupee against
the dollar.
The report said: "Many argue that only a change in the political and
economic leadership can restore business confidence in the economy over the
long term. The trouble is that it is not clear who could do a better job at
running Pakistan."
It said: "With Opposition to the Bhutto government divided and relatively
weak, many people are looking to President Farooq Leghari to take on a
bigger role and perhaps even dismiss the present government and appoint a
caretaker regime of experts."
The report said the government's statistics painted an upbeat picture as Mr
Jafarey expected economic output to grow about six per cent this year, the
same as in 1995.
But it quoted the President of the FPCCI, Ilyas Ahmed Bilour as saying the
economy was in shambles.
It said Pakistan's businessmen were increasingly vocal about what they see
as long standing mismanagement by the government and their complaints run
far deeper than excess state spending.
"Business's list of headaches reads like a compendium of the problems
facing the developing world: Pakistan government spends too much, then runs
up a huge debt to pay for it. Corruption is rampant from the lowest clerk
to the top leadership. Factional killings and strikes regularly paralyse
Karachi, the commercial capital. Imports far outpace exports, leading to
regular currency devaluations. Big landlords, known as feudals, dominate
Parliament and block change," it said.
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961019
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Farm tax at long last?
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R.M.U. Suleman
YIELDING to rising pressure at home as well as abroad, the chief ministers
of all the four provinces have just agreed to tax the incomes of feudals.
After a lengthy meeting at the Aiwan-e-Sadr, attended by the Prime
Minister, her economic aides and four chief ministers, it was agreed in
principle that the agriculture income tax should be levied on big landlords
beginning this year. Is it that simple that it can bring some substantial
yield just this year? This is a proposition the validity of which only time
will tell.
Initially, the provincial governors are expected to levy the tax through an
ordinance which later on, will be discussed and passed by the respective
provincial assemblies. According to rules, the assembly has to pass or
reject a law within 90 days.
The ordinance will be issued after the provinces complete their estimates
of the revenue collection through this levy. The revenue collection
estimates, based on Produce Index Units (PIUs), will be completed within a
two weeks time.
The President, who chaired the meeting, had put in a lot of effort to
convene the chief ministers that the imposition of tax would immensely
benefit the provinces and expedite the work there. The very fact that the
meeting was presided over by the President and not the Prime Minister is
very significant. It signified that the indignities suffered by Pakistan at
I.M.F. and the countrys rapid progression up the global scale of
corruption has considerably weakened the position of the PM and
strengthened that of the President.
The PM has the advantage of mass appeal. The President has the great
advantage of sound administrative grounding at the bureaucratic as well as
varied political levels both in positions of governance and those of a
seriously harassed opposition.
The President could not long ignore the PMs habit of riding roughshod over
the people around her. Nor could he long remain satisfied with his free
hand only in D.G. Khan matters and not the long-denied and cherished
decisive say in Punjab affairs. Finally, he realised that unprecedented
spread of corruption and serious snub from I.M.F. posed a danger not only
to the government but also the state.
This was a situation that, the President perhaps concluded, demanded not a
division but sharing of powers. Associating the Leader of the Opposition
and the Chief Justice of the Supreme Court in evolving anti-corruption laws
and appointing special judges and Ombudsmen for prosecution and
adjudication of these laws is perhaps just the first stage in the sharing
of powers. In the meeting at the President House, a comparative statement
was also provided to the chief ministers carrying details of gains the
provinces would get once they implement the farm tax. The meeting was told
that the World Bank and the International Monetary Fund would release funds
for development projects if only the farm tax was imposed.
Angry feudal lobby
Farm income tax, constitutionally a provincial subject, has already been
imposed half-heartedly in Sindh, the Northwest Frontier Province, and
Balochistan. The Punjab, however, has opposed the agriculture income tax
tooth and nail. The provincial legislators, irrespective of their political
and religious differences, have unanimously passed a number of resolutions
condemning the introduction of this tax. The feudal lobby in Punjab is so
strong that it has been threatening the successive governments of political
instability if the farm tax was imposed.
Two committees were set up to look into the problems of irrigation, the
distribution of water and the drainage systems. A committee, headed by
Ghulam Mustafa Khar, the Minister for Water and Power, will finalise
recommendations to improve the working of Pakistan Irrigation and Drainage
Authority (PIDC). The committee has been directed to submit its report
within two weeks. The Khar committee will churn out ways to make the canal
command units functional.
There are 42 canal command units all over the country and the government
and the World Bank wanted to improve the irrigation system through their
enhanced contribution. This amounts partly to privatisation. Presently 80
per cent of the water distribution system is with the provincial
governments and the rest 20 per cent with the federal government. The
revenues, generated through this system, go to the federal and the
provincial governments with the same ratio.
After privatisation the federal and the provincial governments will be
deprived of this revenue source. The decrease in revenue will be met
through farm tax revenue collection. The net benefit in the bargain will be
rational pricing and distribution and making the water demand-rather than
supply-oriented. Through realistic water rates and their strict
enforcement, enough funds would also become available to spend on sound
operation and management of our key irrigation infrastructure.
The second committee will scrutinise the problems of the National Drainage
Programme (NDP). This committee, headed by Ashfaq Mehmud, Secretary Water,
would submit its report within 10 days. The issues related to National
Finance Commission also came under discussion and a number of decisions
were taken.
A new softer package proposed by the Governor, State Bank of Pakistan, and
the Premiers economic adviser, has already been dispatched to Washington
after its approval by the President. The package will be discussed with the
IMF by Shahid Hassan Khan, Special Assistant to Prime Minister on Economy
and Dr. Muhammad Yaqub, Governor State Bank of Pakistan, who have already
left for the United States.
The package carries fresh proposals for new taxation and heavy cut on
expenditure besides commitment for the imposition of farm tax. There are
fifty-fifty chances of convincing the IMF to accept this softer package and
get the release of the stuck-up loan tranche of $80 million.
Mr.V.A. Jafarey, the de facto finance minister and Adviser to the Prime
Minister on Finance and Economy, has, according to some reports, refused to
endorse the new set of proposals and declined to accompany the economic
team to Washington for negotiations with the IMF. Jafarey feared that the
IMF would not agree to the package.
After the announcement of the budget in June this year a two-member team of
the International Monetary Fund had come to Pakistan and suggested to the
authorities here to levy an additional Rs8 billion taxes which would
improve the economic situation. The IMF suggestion was turned down by
Jafarey saying Things will be pretty good in two months time and the
macro-economic situation will be far better.
Prolonged sickness
Pakistan, however, did not recover from economic sickness and the IMF, this
time, asked the visiting Pakistani team to levy Rs 10 billion additional
taxes to achieve the 4 per cent budget deficit and other macro-economic
targets. It would have been a political Harakiri for the government to
agree to the IMF prescription. V.A. Jafarey had, however, recommended to
the government to accede to Fund proposals but the government refused to
agree to this measure. The package prepared by Jafarey would have jacked up
the input prices, crippling the already under-pressure local industrial
sector.
Mr.V.A. Jafarey is a very seasoned bureaucrat familiar with all the
provincial and federal taxes. A little known fact about him is that at one
time he was a spirited opponent of imposing federal income tax on larger
agricultural incomes. The enabling law for this tax was pushed through by
Z.A.Bhutto, in provinces with the help of the Emergency powers that he then
enjoyed.
Strange are the ways of the bureaucracy. Work on implementation of the
enabling law continued even when ZAB was no more. A final paper was
prepared and this scribe had some hand in it. To discuss sit a
comprehensive federal-provincial meeting, presided over by AGN Kazi,
another seasoned bureaucrat, was held at the P- Block.
There was nothing surprising in all the provincial representatives still
opposing the new unconventional tax talking of presumptive incomes and
PIUs.
What was surprising was that as Secretary, Planning and Development, Mr.
V.A. Jafarey had also joined hands with the provincial representatives on
the ground that the new tax lacked administrative feasibility. Nothing
could, however, stop A.G.N. Kazi from the single-minded pursuit of
implementation till quite late in the day, when Ghulam Ishaq Khan, then
Secretary General-in-Chief casually dropped in the meeting and after non-
committal participation for a while, took A.G.N. Kazi to his room, leaving
all the participants in sullen expectancy.
After about half an hour, Kazi returned and called the meeting to order and
started a long summarisation of the two conflicting views expressed at the
meeting. Finally, he announced that he himself had moved from one camp to
the other and abruptly adjourned the meeting.
Those who had been working on the draft for months or years followed him to
his room to ask what was thence to be done.
He was as usual very calm and clear. The whole matter now goes back to the
Central Board of Revenue, which simply meant forgetting the whole issue as
he had forgotten it. Issues, of course, never really die.
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961019
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Spotting tax evaders need of the hour
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Ihtasham ul Haque
PAKISTAN NEEDS an additional Rs 45 to 50 billion annually to modestly run
its day-to-day financial affairs and both the Central Board of Revenue
(CBR) and the World Banks studies advise the government to find new
resources by effectively recovering agriculture income tax and detecting
tax evaders throughout the country.
The government is said to have accepted the proposals after having been
convinced that there were no other means to increase the low tax base in
the absence of which the financial crunch is so imminent that it could pose
a threat to the government which may face difficulties in paying salaries
to its employees.
The example in this regard was being given of the NWFP government which was
believed to be facing an acute funding problem, forcing it to cut its non-
development expenditure by at least 20 to 25 per cent.
Except for Punjab, all the tree provinces are running on overdrafts from
the State Bank, insiders claimed. The State Bank is reported to have
advised the provinces to live within their means and they would not be
offered additional money even if the federal government wished so. This has
happened due to autonomous status given to the central bank on the
insistence of the IMF and the World Bank.
The CBR told the federal authorities that it should not be asked to
continue searching for more and more tax payers and that now it was the
turn of the agriculturist lobby to pay their due taxes as was demanded by
both the multilateral lending agencies. A study said that the CBR under the
present circumstances could generate Rs 10 to 15 billion more, especially
because of the leakages and ineffective laws which provide cover to
taxpayers to escape taxes.
But more emphasis has reportedly been given in the World Bank study which
called for urgently taking up the issue of low revenue generation before it
was too late. It said that the entire agricultural system has to be
improved and decentralised so that Rs 50 billion could be recovered in
agriculture income tax annually out of Rs 550 billion earned by the landed
gentry of the country.
Immediately after the top level meeting held in the Aiwan-e-Sadr on Sunday,
the agriculturists of both PPP and the Muslim League (N) are said to have
joined hands to scuttle the governments move to levy agriculture income
tax.
Reports from Lahore revealed that there have been some secret meetings
between Punjabs feudal MPAs and MNAs belonging to the ruling and
opposition parties at which it was decided that all efforts and resources
be pooled to resist levying of tax on their farm income.
This would be the fourth time when the landed gentry would coalesce to
resist this tax. It is to be seen whether this time again the government
would fail to enforce its decision.
The question now being asked by the IMF and the World bank is that under
the present circumstances, there is no hope that Pakistan could re-pay its
future debts due to which they are highly sceptical about the viability of
the whole financial system in Pakistan, said an official of the Ministry
of Finance. The levying of farm tax is necessary not only to secure foreign
loans but also make the countrys financial system running.
It was in that backdrop that officials of the Ministry of Finance and CBR
were said to have forcefully presented their point of view at Sundays
meeting at the President House asking the top people to help levy the farm
tax. President Farooq Leghari, who himself is a big landlord reportedly
promised to help levy this new tax. Except for Punjab, legislations have
been enacted by three provincial assemblies but there was no effective
recovery of this tax. Now Punjab was expected not only to legislate an
early bill but also recover farm tax.
During the Junejo government, a move was made to impose agriculture income
tax but without any result. Dr. Mehboobul Haq, then finance minister, tried
to levy this tax with the help of the present PML(J) President Chaudhry
Hamid Nasir Chatta. His efforts did not bear fruit. The doctor told this
correspondent when asked about the issue, that the agriculturist lobby was
so strong that he could not do anything. However, he admitted that if the
late Zia ul Haq had wanted, this could have been done along with the
building of the controversial Kalabagh Dam. It was my assessment that our
landed gentry earns annually about Rs 600 billion and do not pay Rs 100
billion as their taxes, he said, adding that on the basis of his study,
the World Bank made its late study, asking the government to go for the
farm tax. During the first and now second government of Ms. Benazir Bhutto,
people from within the party resisted the bill. And on forefront was the
MNA from Gujrat, Nawabzada Ghazanfar Gul, who manoeuvred with the
opposition members to frustrate the efforts of Ms. Bhutto to impose the
tax.
With the decision on farm tax, arguments were still going on that the CBR
should also be taken to task and that it should not be allowed to only seek
additional revenue from landlord lobby.
As a matter of fact the CBR has not been able to effectively increase
revenue generation. Though it has always planned to recover additional
taxes every year but who does not know that they revise their targets
downward during the year. It happened in 1995-96 and 1996-97.
The CBRs current year target of Rs 41 billion has already been lowered.
Some say this time they will have at least Rs 15 billion less recovery on
account of concessions and exemptions given in the GST while others
maintain the shortfall will be about Rs 8 billion.
Nevertheless everybody is convinced that the overall recovery position is
not satisfactory. It is said while the population of the country is
increasing, revenues are not increasing, rather they are on the decline.
Political pundits say that there is no likelihood for immediate change of
the government and that the danger is not that much imminent. They say that
the government would listen to the dictates of the President who enjoys the
support of the army and the judiciary. And if new taxes are levied;
corruption halted to some extent, then maybe the government will be allowed
to complete its term.
Insiders said that during the last few high level meetings at Aiwan-e-Sadr,
it was pointed out that Junejo, Ms. Bhuttos first government and the Nawaz
administration were all removed on the charges on corruption but the menace
could not be eliminated. Therefore, some other means be adopted to do the
needful, instead of dismissing the government.
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961024
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KSE 100-share breaks 1,400-point barrier
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Staff Reporter
KARACHI, Oct 23: The KSE 100-share index on Wednesday broke the barrier of
1,400 points as base shares came in for strong renewed support at the lower
levels. Volume soared to 30m shares from an average figure of 15m shares
after about three months.
The index was last quoted at 1,431.74 as compared to 1,393.63 a day earlier
as most of the base shares maintained their upward drive on active follow-
up support.
The opening was itself fairly promising as the post-budget buying euphoria
remained at the peak level owing to conflicting perceptions about the
impact of the devaluation. But it was largely the foreign-fund buying,
which kept the market in a good mood all through the session despite the
fact that local leading investors were still in two minds about the
direction of the market. Some of the local institutional traders were,
however, back in the rings and made extensive buying on selected counters.
"The acceptance of the current economic stabilisation and financial reform
package could lead to uninterrupted resumption of foreign aid in the coming
years and appears to be the chief inspiring force behind the revival of
foreign demand", most floor brokers believe.
Energy shares led the market advance after an across the board 10 per cent
increase in prices of petroleum products. But the outstanding gainers among
the distribution giants, notably Shell Pakistan and PSO, which rose by Rs
7.50 to 11. Hub-Power, which was massively traded on strong foreign buying
followed them, rising by Rs 1.60 and so did some other energy shares.
Bank shares followed them after an increase of three per cent in the mark-
up rates and recovered in unison, major gainers among them being MCB,
Faysal Bank, KASB & Co, Bank of Punjab, Union and Askari Bank. Among the
chemical shares, BOC Pakistan, Fauji Fertiliser, Engro Chemicals and some
others were leading gainers on active short-covering at the lower levels.
Some of the leading textile shares also came in for active support but
being the chief beneficiary of the devaluation they failed to respond
bullishly as they should have at the current lower levels. Synthetic shares
performed well under the lead of Dewan Salman, National Fibre, and Dhan
Fibre on active support at the lower levels.
Losses on the other hand were mostly fractional and reflected lack of
support rather than large selling from any quarters. However, Zeal Pak
Cement, Parke-Davis, Brooke Bond and Quality Steel fell with an extended
decline of one rupee to Rs 1.75.
The most active list was topped by Hub-Power, up Rs 1.60 on 10.563m shares
followed by PTC vouchers, higher Rs 1.05 on 8.174m, ICI Pakistan (r) firm
40 paisa on 1.461m, Fauji Fertiliser, higher Rs 2.85 on 0.922m and Dewan
Salman, up Rs 1.40 on 0.784m shares.
The other actively traded shares were led by MCB, firm Rs 2.40 on 0.615m,
ICI Pakistan, steady 25 paisa on 0.378m, NDLC, firm 10 paisa on 0.325m and
Bank of Punjab, up one rupee on 0.281m shares. There several other notable
deals also.
Trading volume rose further to 29.691m shares from the previous 22.794m
shares thanks to active dealings in Hub-Power. There were 268 actives,
which came in for trading, out of which 152 shares rose, while 65 fell,
with 51 holding on to the last levels.
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961018
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Maa ki hai2
-------------------------------------------------------------------
Ardeshir Cowasjee
ONE man with the courage of his convictions, Chief Justice of Pakistan
Sajjad Ali Shah, with the support of many of his equally courageous brother
judges, stood up, straightened and strengthened the pillar he heads.
The doubters followed suit and today we can boast of a judiciary that is
asserting its independence. Numbers are not the be-all and end-all. The
evil that surrounds us can be curbed by a few determined men.
On the September 20, in this space there appeared a column entitled Maa ki
hai, about a distressed mother. Its final paragraph read:
It would be in the fitness of things if the other Shah of Sindh, Chief
Justice of Pakistan Sajjad Ali Shah, will consider summoning Chief Minister
Abdullah Shah to stand before him so that he may warn him that should any
harm or hurt be unjustly caused to either mother or son, Abdullah Shah and
his cohorts will be held responsible and be duly punished.
MQM MPA Wasim Akhtar sent a copy of the column to the Chief Justice of
Pakistan who nominated a caring judge of the Supreme Court, sitting at
Karachi, to take suo moto cognisance of the facts as narrated. This was
done. Hereunder the order of Justice Nasir Aslam Zahid:
HR 13 of 1996
Complaint of Wasim Akhtar, MPA of Sindh
Karachi 8/10/96.
A copy of the article published in the daily Dawn of 20/9/96 entitled Maa
ki hai, inter alia, relating to one Osama Qadri, an accused in custody,
and his mother Mst Feroza Begum who is alleged to have become a minister of
the Sindh Cabinet on 11/9/96 was sent to the Chief Justice of Pakistan by
Wasim Akhtar, MPA Sindh, with the following note:
This is for your information. Please read this article and take necessary
action. This is your duty and responsibility to check on this matter for
Gods sake and for Pakistans sake save this country.
This matter was treated as a Human Rights case and notice was issued to
the learned Advocate-General Sindh and also the petitioner, Wasim Akhtar,
for today. Mr Abdul Ghafoor Mangi, learned Advocate-General Sindh, has
appeared pursuant to the notice. Wasim Akhtar, MPA Sindh, is also present.
He states that he is in custody and 63 criminal cases have been registered
against him. It is further informed by him that he is confined in his house
which has been notified as a sub-jail and he has been produced today before
the Court in custody by the police.
2. Mst Feroza Begum is an MPA belonging to MQM (Altaf Group) and,
according to the article, her son Osama Qadri had been tortured and kept in
police custody and she had made several complaints to the authorities
expressing her fear that her son Osama Qadri, who is in police custody
since 21/8/96, might be killed in a police encounter. According to the
article in the daily Dawn, she has been forced to become a minister
disassociating herself from the party to which she belongs and that she has
done this to save the life of her son Osama Qadri. It is further alleged
that despite becoming a minister in the Sindh Cabinet, she has not been
allocated any portfolio and that she is confined in her house and that no
visitors are allowed to see her.
3. If the allegations that are narrated in the said article are correct,
it would, prima facie, amount to violation of various articles of the
Constitution, inter alia, the following:
a) Article 9 relating to life and liberty of a person.
b) Article 10 which provides safeguards against unlawful arrest and
detention.
c) Article 14 which provides that the dignity of man is inviolable.
d) Article 15 relating to freedom of movement.
e) Article 17 which, inter alia, provides that every citizen shall have the
right to form, or be a member of, a political party.
If Osama Qadri and his mother Mst Feroza Begum have been subjected to
torture and other illegal treatment as narrated in the said article, the
persons responsible would also be liable to be proceeded against under the
relevant provisions of the criminal law.
4. The learned Advocate-General submits, on instructions, that various
allegations referred to in the article are incorrect. He seeks time to file
statements of the responsible officers of the concerned departments
supported by documentary evidence to reflect the stand of the Government.
Mr Wasim Akhtar also states that if he is given some time, he will give
details of what has happened in so far as Osama Qadri and his mother Mst
Feroza Begum are concerned.
Further proceedings will take place on 16/10/96 at 1.00 p.m. an effort
should be made that the statements are filed before the next date. On the
next date, the petitioner Wasim Akhtar should be produced. The learned
Advocate-General has also been asked to ensure the presence of Mst Feroza
Begum and her son Osama Qadri on the next date before this court.
Nasir Aslim Zahid, J 8/10/96.
At this hearing, Sindh Advocate-General Abdul Ghafoor Mangi, on
instructions, stated that various allegations in the column are incorrect,
without mentioning exactly what was incorrect. Whose instructions was he
following?
The post of advocate-general is a constitutional post, deliberately non-
political. He cannot function under instructions acting as a mouth-
piece. He is constitutionally obliged to tender independent legal advice
to the provincial government to the best of his ability. He cannot stand in
court to defend whatever unconstitutional or illegal actions the government
of the day decides to embark upon.
Chief Minister Abdullah Shah, in an effort to prove his bona fides, invited
minister without portfolio Feroza Begum, held in protective custody, to
attend a cabinet meeting on October 15, the first she was invited to attend
since she was sworn in on September 11. This news was splashed on PTV that
night.
On October 16, as ordered, a sad and frightened widow and her son, Osama
Qadri in police custody, were produced in court. The AG filed only the
statement of an SSP, the veracity of which must be doubted as the man has
direct access to the CM, under whose instructions he acts.
Justice Nasir Aslam Zahids order of the 16th records: Mr Adbul Ghafoor
Mangi, Advocate General Sindh. Petitioner Wasim Akhtar MPA, Sindh. Pursuant
to the orders passed on 8/10/96 Osama Qadri son of Mst Feroza Begum has
been produced in custody. Mst Feroza Begum has also appeared and states
that she had received information from the Home Department that she was
required to appear in the Court today and accordingly she has appeared.
Petitioner Wasim Akhtar has filed a detailed statement along with
annexures. Copy of the statement with annexures has been supplied to the
learned Advocate-General. A copy has also been supplied to Mst Feroza
Begum.
Mst Feroza Begum wants to file a detailed statement and for that purpose
requests for some time. Detenu Osama Qadri states that he is in custody at
Central Prison, Karachi. He also wants to make a statement and requests
that on the next date he may be called early so that he may write his
statement in the Court premises. For the present, Osama Qadri made a
request that apart from his family members a number of other persons
unconnected with his family are also allowed by the jail authorities to
meet him, although he does not want to meet them, and this causes extreme
harassment and inconvenience to the detenu.
The learned Advocate-General has also filed a statement dated 15/10/1996
of SSP Central, Karachi, Din Muhammad Baloch, supported by a number of
annexures. Copy of the statement with annexures has been supplied to the
petitioner as well as to Mst Feroza Begum. In case any party wants to file
a reply statement, the same may be submitted to the Assistant Registrar of
this Court by the next date. Further proceedings will now take place at 12
noon on 24/10/96. To enable detenu Osama Qadri to prepare and file his
statement he will be produced in custody in this Court by 9.30 a.m. on
24/10/96. The Assistant Registrar will make arrangements so that the detenu
can write his statement without disturbance from any quarter.
In view of the statement made by the detenu, the Jail Authorities are
directed not to permit any other person except members of the family of the
detenu to meet or see him while he is in custody at Central Prison,
Karachi. This order placing restriction on the Jail Authorities will
continue until further orders of this Court. The learned Advocate-General
states that he will communicate this direction to the concerned authorities
for compliance.
The Judges have done what was expected of them. The people must hope that
Feroza Begum will have the strength to withstand the threats and the
pressures that will be exerted on her and her son. Bullies, who are
invariably cowards, must be fought.
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961021
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A passion for the truth
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Ayaz Amir
These three years were not easy for us. We had been in minority in the
Senate. We have had a coalition government in Punjab and at the Centre. It
required hard work and skills to bring it to three years. I am also
thankful to my MNAs who co-operated with us in our efforts to give good
governance and work on our agenda for change. We did de-politicise the
postings at the CBR, FIA and the Anti-narcotics Force... (we think)
politics and business are two separate things.
PM Bhutto in an interview with The News.
IT requires exceptional courage to make such astounding statements. Not the
faintest allusion here to the trail of slime, decrepitude and corruption
which, if there is any justice in this world, will be considered as the
foremost legacy of the Bhutto regime. Ms Bhutto being grateful to her MNAs
for having co-operated in the effort to give good governance to the
country. Such audacity robs even the gods of speech.
Asked a few moons ago by a CNN interviewer about the charges of corruption
against her government, PM Bhutto, while setting out a long but implausible
defence, indignantly responded with the refrain, And corrupt how? I do
not know about the interviewer but the nation certainly was left speechless
by the self-righteous fury of that response. And now when the land is in
turmoil and waiting for things to happen, the PM is claiming credit for
good governance.
Consider also the PMs response to the Presidents latest letter to her
about political interference in the postings and transfers of
administrative officials. While thanking the President for his concern, the
Prime Minister has drawn his attention to various rules which forbid
bureaucrats from making approaches for their postings or transfers (as if
the President was unaware of these) and goes on to say: Pakistan Peoples
Party has been elected on a theme known as Agenda for Change. This is
also supported by its allies. To implement this Agenda, I have been
directing my members in the parliamentary party meetings that they should
desist from meddling in the administrative affairs of CBR, Customs, banks,
DFIs... This from a prime minister who has overseen the transformation of
her Secretariat into a super recruiting agency, with the lowliest federal
jobs being filled on its recommendations (ask Siraj Shamsuddin or Naheed
Khan how), while banks and DFIs have been reduced to their present straits
by nominees selected for their pliability rather than their competence.
Even at this late hour when a touch of humility or a recognition, however
remote, of past follies would sit better on this beleaguered government,
the Prime Minister still chooses to conduct a brass orchestra. Good
governance indeed. If Ms Bhutto had understood even a bit of what this
phrase stands for, she would not have been in this predicament, looking
desperately around to see from where the next blow will come: the
presidency, the Supreme Court which is hearing the presidential reference
regarding the power to appoint judges, the Lahore High Court which is
hearing Manzoor Wattoos petition against his ouster, or the inquiry into
the killing of Murtaza Bhutto.
It is a reflection of the governments plight that Minister for Investment
(some joke this) Asif Zardari goes off for a few days to London to have his
eyes examined (according to APP, Pakistani doctors and hospitals, of
course, not being good enough for him) and the cry goes up that he has fled
the country. Nothing could be further from the truth if for no other reason
than that the Minister for Investment, may his camels increase, is made of
sterner stuff than that. But this wild libel at least gives an indication
of the popular mood and of the suspicious lenses through which ordinary
people have begun to view the First Couple. What is the use of all this
pomp and glory when you cannot even shave off your moustache without giving
rise to the most alarming theories about your state of mind?
It shows something about the way our Republic works, however, that the
Prime ministers present troubles have arisen not because she is being held
to account for the corruption of her government but because of the
egregious tactical errors she has committed: her quarrel with the Supreme
Court and her taking the President for granted. Which is a bit like saying
that a transgressor of the law has been caught not because he has broken
the law but because he happened to annoy the constable on duty. From this
it follows that if the Prime Minister had shown not the wisdom of Solon
(hardly required in the circumstances) but merely conducted herself with
greater care, she would not have been receiving lessons in propriety from
Sardar Farooq Leghari. Once her subordinate in the iron hierarchy of the
PPP and later her hand-picked nominee for the presidency, he has been
transformed suddenly into an implacable school master. For someone whose
path up the heights has been illumined by arrogance and pride could any
circumstance be more galling?
And yet if the truth were ever to be revealed, Ms Bhuttos tactical errors
which are proving to be her undoing are nothing when compared with the
other, more baleful aspects of her rule. Long after her quarrel with Chief
Justice Sajjad Ali Shah is forgotten, the country will still be paying a
stiff price for her (or is it Shahid Hasan Khans) energy policy? With
several WAPDA projects in the process of coming on line, it should have
been clear in 1994 when this energy policy was first put together that the
shortfall in energy production which the country was facing at the time
would soon be made up. Yet heedless of this simple calculation, a glut of
MOUs was signed pledging the country to buy energy at expensive rates (6.5
cents/KWH) even if it had no use for it. What Pakistan is set to pay
foreign investors for this surplus energy will be upward of one billion
dollars in foreign exchange. The tab in local currency will of course be
picked up by the people of Pakistan, who are already paying through their
noses for most utilities.
But this is just one example of the heedless extravagance that has brought
the country to its present pass. The Oil and Gas Development Corporation
was a thriving and paying concern when this government took over. Today it
is strapped for cash, having been royally milked by its last chairman, my
friend Riffat Askari. Thank God the President intervened otherwise if Salim
Saifullah, the Petroleum Minister, had his way, shares in the Qadirpur
field, one of the most promising in the country, would have gone for a
song. Will anyone care to investigate matters regarding the construction of
the Uch gas pipeline in which a Bhutto cousin is set to make a killing?
In the current rage over accountability the whole focus is wrong. There is
no point in holding up the good and the great for accountability when, as
past experience has amply shown, nothing can be proven against them, the
good and the great not being in the habit of leaving any traces behind. The
thing to do when the cows finally come home is to investigate institutions
like the OGDC and scrutinise individual projects. If a bank has given a bad
loan, the bank officers concerned should be held to account and then if the
trail leads anywhere, as in dubious cases it mostly does, it should be
followed. If there is something wrong with the Uch deal, it should be
rigorously examined with the hope that if the scrutiny is hard enough it
will lead to the main players.
Deals, commissions, kickbacks: the saga woven around these profitable
ventures is infinitely richer (if also more amazing) than the tactical
blunders which have tied the hands of the Bhutto government. The government
is paying a price for its blunders. Will that day dawn when it is made to
pay for its other misdeeds? Pakistan has always been robbed. That down the
years has been its unalterable fate. But robbed on this scale and with such
zeal. It would take a new Arabian Nights to fully capture the spirit of
these times.
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961023
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The way we compute the crowds
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Hafizur Rahman
GENERAL elections are nowhere in sight, but, because of the confrontation
between the ruling regime and the opposition, political parties continue to
hold public meetings. All of them are doing so: the PPP, the PML(N), the
Jamaat-i-Islami, and others.
Even Imran Khans Tehreek-i-Insaaf. All of them claim that lakhs of people
attended each meeting. It would appear that the people of Pakistan had
nothing better to do.
After every meeting the Press too computes the audience; how large it was,
how many people actually attended. These are all estimates, of course.
Comparisons are then made, and these comparisons are used to judge the
popularity of the political party involved.
There have been many wrong statistics in Pakistan, but there has been
nothing more inaccurate than figures of crowds at political rallies. When
there was a war threat from India in early 1951, and Prime Minister Liaquat
Ali Khan showed a clenched fist to that country at a truly mammoth public
meeting in Lahores Minto Park, Meem Sheen, my successor as Dawns
correspondent in Lahore, put the figure at one million.
Many other historic gatherings have been described in similar overblown
figures since then. In fact, it is a favourite pastime of reporters to make
such estimates for their newspapers and also discuss them among themselves.
The general consensus that has developed over the years is that any meeting
where the crowd is less than a lakh is no meeting at all.
The truth is that to be able to collect one lakh persons for a public
meeting is a most extraordinary feat. It has not been so easy even in a
country like ours where most people go to political rallies for the fun of
it, and not because they are seriously interested in the subject or the
speakers. It is rare that these two the subject and the speakers are
attractive enough to draw enthusiastic crowds.
Let me tell you what I have learned about these crowds. It was 1950. The
place was the University Ground in Lahore, and the speaker was again Mr
Liaquat Ali Khan. I was on official duty and was seated at a high spot
overlooking the entire area. During the late Prime Ministers address, for
want of doing anything more useful, I decided to form a credible idea of
the gathering.
I divided the area mentally and visually into 16 squares, counted every
head in one square and then multiplied the figure by 16. Then, in order to
make up for any mistake, I doubled the total, although a ten per cent
addition would have been enough, and got the final total of eighty
thousand. The next day the newspapers reliable estimates ranged between
one and a half lakhs and two lakhs.
When exaggerated numbers of attendance at public meetings are disputed, the
calculators whether from the Press or the political party concerned
refer to the now common phenomenon of buses used to bring willing (or even
unwilling) participants to the venue. Even their calculations are not based
on common-sense. The biggest bus cannot carry more than a 100 persons. I
dont think the most enterprising of organisers has ever been able to
commander a hundred vehicles.
I have been to numerous meetings. The buses appear to be countless. They
are not countless; fifty or sixty at the biggest of rallies. Therefore the
maximum number that these buses can bring in would be ten thousand. All
right, fifteen thousand, if you insist. This is only a small proportion of
the lakhs who are supposed to have attended the meeting.
Another thing, and this is of real significance. Demographers say that one
half of the total population in India and Pakistan is below fifteen years
of age, whose presence in public meetings is meaningless. For purposes of
computing audiences at political meetings this formula is very telling. Now
suppose, for example, we take my friend Meem Sheens figure of ten lakhs at
Mr Liaquat Ali khans memorable address in Minto Park.
The population of Lahore at that time was, at the most, 12 lakh. Subtract
the demographers figure from this and you have six lakhs left. Subtract
the female population, whose attendance at such meetings is minimal and can
be ignored, and you get three lakhs.
Even this would mean that if every single male adult in Lahore walked to
the meeting (no buses were used to bolster that gathering, which was huge
anyway), and not a single adult soul was left in any house, and the bazaars
or in hospitals and other such places, and even tottering old men of 70 and
above did not stay back; in fact if Lahore had become empty except for
women and children, then the audience in Minto Park was certainly three
lakhs. But, obviously, all this did not happen, so you can calculate the
real figure for yourself.
Take another instance. Soon after taking over the reins of government in
December 1971, Mr Z.A. Bhutto addressed a public meeting in Lahores
Qadhafi Stadium. I was there as part of the organisers. The stadium was
really jam-packed, with thousands of people outside its walls, just
listening.
It is not difficult to calculate how many people a stadium can seat on the
steps and on the central green. The real expert figure, packing the men
like the proverbial sardines, was under a lakh and a half. And yet, the
next days newspaper accounts vied with one another in the number of lakhs
they could muster.
The same realistic standard of computation (the demographers) should hold
true for other gatherings like processions and funerals. Wherever you hear
the word lakhs mentioned in regard to crowds and audiences, apply the
formula, then subtract the women, make provision for the fact that life
went on normally in the crowded bazaars, and then see what you get. But I
suppose those interested in exaggerated figures dont want to do that. It
is not a particularly nice feeling when you have to face stark facts.
To which, of course, statisticians and publicists of the political parties
will retort: even if there is merit in what you say, and even if there were
only fifty thousand persons at our public meeting and not three lakhs
claimed by us, so what? Ours is still the most popular political party in
the country, and you can put that in your pipe and smoke it!
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961023
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Devaluation, what devaluation?
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Mohammad Malick
ISLAMABAD: Makhdoom Shahabuddin has never been known for his financial
acumen but his string of past performances paled before what he did on
Tuesday. It had to be seen to be believed when at around noon the minister
of state for finance sheepishly admitted his ignorance of the early morning
devaluation of the national currency.
On top of it all, he even tried the Senate into believing that he had known
about the 8.4 per cent devaluation but his belated attempt was brought to a
naught by an unsparing Wasim Sajjad.
It all began during a discussion emanating from a question posed by Anwer
Bhinder regarding the inflation rate and the minister, confidently painting
a picture of economic bliss, little knowing that moments later his own
bliss would stand transformed into an embarrassment. It would have been
okay had he confined himself to talking of an inflation figure of 9.9 per
cent, which is placed at over 20 per cent by independent observers, but
probably he got carried away by his own heavily accented English and
promised to bring down inflation, as well as budgetary deficit and
unemployment, and he would have gone on had he not been cut dead in his
tracks by a sarcastic sounding Wasim Sajjad.
Sure, Mr Sajjad interjected, inflation will definitely be brought down
by the latest devaluation. That should have been the end of the matter but
the chairman could see from the baffled expression on the ministers face
that he did not have a clue about devaluation.
And then the barbed jabs started flowing in. Looking straight at the
minister, Wasim Sajjad asked: Are you aware of the devaluation? A
flustered Makhdoom tried bluffing his way out by evasively replying: Aisa
to hota Rehta Hai(such things keep happening). In that instant Wasim
Sajjad knew he had scored a direct hit and zeroed in once again: Im
asking you to tell me that do you know that there has been a big
devaluation of the rupee because that is my information and it could be
incorrect. The commerce minister tried bailing out his colleague by
whispering the information to him but by that time Makhdoom Shahabuddin
appeared beyond reach as he mumbled his ignorance of the whole affair.
He tried salvaging his smothered pride by rambling something about the
decision being the domain of the governor of the State Bank only to be
further embarrassed by Wasim Sajjad who feigned his shock at discovering
that the governor of the SBP had not even bothered discussing such an
important matter with him. And there was more to come.
A few more speakers and myriad innuendoes later, Anwar Bhinder asked for a
categorical assurance by the minister that no further devaluations would
take place. Once again Wasim Sajjad chimed in by sarcastically observing:
Why are you insisting with him because he doesnt even know of todays
devaluation. An equally stinging remark came from Fazle Agha who shouted:
No wonder we are in such a shape because the government had sent this man
to negotiate with the IMF who has no idea of what is going on and doesnt
even know his own budget figures. A reference to another shiny bloomer of
the day.
It so happened that while replying to another question the minister
confidently asserted that the government had been allowed an internal
borrowing limit of Rs30 billion in the budget, whereas the budget figure
stood at Rs 20 billion. He even insisted on debating the technicalities of
the matter at hand. In the end all that the minister could say in his
ultimate defence was that he qualified for the job because he had majored
in economics.
Sen Khalil raised an issue that was not even remotely funny. The senator
appeared distraught by what he perceived to be a gross violation of the
Constitution the non- holding of any meeting of the Council of Common
Interests (CCI) during the last three years. Sen Khalil, commonly known as
Commander, is considered very close to the most important factor in
national politics and, therefore, the significance of his question was not
lost on the house.
Mustafa Khar tried countering by admitting the lapse and argued that the
Constitution did not stipulate any period and assured the House that the
government still had two years to go and the meetings would surely take
place. Not so, retorted Aftab Sheikh who said that by the rules set by the
CCI an yearly meeting was mandatory. Quite a few senators spoke on the
subject but none pointed out that the chargesheets against the dismissed
governments of both Benazir and Nawaz Sharif had one thing in common and
that was the charge of their having failed to convene the meetings of CCI
as warranted by the Constitution.
===================================================================
961019
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Proper place, priority for sports wanting
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Alauddin Ghauri
The importance of sports in a nations life has to be understood and
appreciated to put the institutions on the right keel to bring about a
positive upward change in these institutions; educational institutions must
also be actively involved. Importance of sports should be second to
education. Educational institutions are the reservoir of unexplored raw
materials, lying in earth for want of a systematic programme for
development of sports and games. There is no dearth of talent and resources
in the educational institutions which can only be exploited through
dedication and honesty of purpose. These institutions being under the
government can be ordered to follow a set system and programme which was
implemented for a decade or so after the independence.
The PSB which came into being through an ordinance in 1962, was part of the
Ministry of Education. This clearly suggests that realising the importance
and role sports play in a nations life, it was grouped with education.
However, an ill-advised surgery was carried out to separate the twins and
place sports under Culture and Tourism which continues to create
complications. Sports have not received the desired attention from the
Ministry as the front seats are occupied by culture and tourism; sports
regrettably are treated as recreation. Things are likely to continue as
they are unless sports is recognised as a distinct discipline and given the
importance it deserves.
Separation of sports from education, despite availability of grade 14-20
PTIs/DPEs in schools and colleges, has resulted in lack of interest,
activities and decline in standards. Educational institutions have adequate
resources as a reasonable amount is charged from a student at the time of
admission; private students are even made to pay the sports subscription
but are ineligible to represent their institutions. Universities and
colleges present a dismal picture in so far as facilities are concerned
despite collection of millions. Lack of interest can easily be judged from
the number of teams that participates in inter-varsity, inter-collegiate
and inter-school tournaments.
Sports activities instead of following a set schedule and calendar as in
the case of examinations, continue throughout the year and for this reason
most of the students cannot gave due attention to sports. Teams are raised
and competitions held without defining the aim and objectives. A talented
athlete should be near his peak when he enters a university. However, wrong
planning, rather no planning by the UGC has done enormous damage to sports.
UGC should be concentrating more on the improvement of standards and
provisioning of facilities than on seeking affiliation with the national
federations/POA where politics rules supreme.
Federal Minister would do great service to sports if he gives a serious
thought to placing sports under the education so that desired attention is
given in schools, colleges and universities.
Alternatively, if resources permit (unlikely under the existing
conditions), an independent ministry should be created. UGC would be in a
better position to devote its energies towards the betterment of sports if
it is forced to withdraw from the national federations/POA. In order to
assess the progress shown by various educational institutions, games on the
pattern of national games of a limited number of events be held annually by
UGC, Secondary Board and Schools Board.
Results produced by institutions would act as a barometer to gauge the
performance and efficiency of sports incharge. Development of sports
facilities in schools, colleges and universities, occupies a fundamental
place in the creation of talent capable of earning recognition in games and
sports events at home and abroad.
We should introduce athletics, hockey, football, basket ball, boxing, table
tennis and badminton as compulsory subjects and should systematically and
faithfully implement it. Institutions with limited resources should be
asked to concentrate on optional games.
We are convinced that the sports horizon would brighten up and things would
appear encouraging if the concerned authorities manage to force the
educational institutions to faithfully implement the policy. This would
result in maximum exploitation of un-explored talent available in sports
reservoirs.
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961019
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Hockey change-over and the problems to be tackled
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Lateef Jafri
A change of guards at the top level the hockey organisation, though
expected for sometime, should set at rest the speculations and conjectures
afloat in the country, especially because there was a leadership gap in
what is generally regarded as the national game.
One expected Mr Nawaz Tiwana to take over the onerous responsibilities of
head of the hockey federation after having staged a comeback as managing
director of the national carrier in April this year. This would have been
the traditional arrangement a continuation of the system since the days
of the hockey think-tank and supremo, Air Marshal Nur Khan. But due to
pressures other than his airlines workload he kept aloof from the hockey
affairs. Officially and rather surprisingly it was let known that Air Vice
Marshal (Retd) Farooq Umar, his predecessor in PIA, has not to vacate the
PHF charges due to the approaching Atlanta Olympics and the supervisory
role being played by him for the preparations of a robust outfit. A new
incumbent will have to modify the paper-work and the plans being enforced
may be topsy-turvied. The AVMs tenure was thus extended for some months at
a Council meeting specially convoked to formalise the arrangement.
There was unanimity at the latest Council decision and relief at the
departure from the hockey scene of AVM Farooq Umar who was at the helm of
PHF for about three-and-a -half years, having been re-elected for unknown
reasons on Dee 23, 1994. The organisations Secretary, Col Mudassar Asghar,
described the regularisation of the presidents post in the larger
interest of hockey and expressed the hope that things would now move in
the right direction. Hockey circles also feel that the slump in the level
of the game may be arrested and misdemeanours may not raise their ugly
heads under Nawaz Tiwana, combining the qualities of leadership, courage
and vision.
It is a moot point if the AVM made ample contribution to the progression of
the countrys hockey or he was more responsible for the injection of
politics in the game, which ultimately led to the opening of a revolving
door for an agonising result at the Olympics. He chalked out the
methodology for throwing down the gauntlet to the countries belonging to
the higher echelon of global hockey, a job which strictly belonged to the
technocrats of the game, interfered in the selection of a cohesive set, an
assignment reserved for the former Olympians; the federation chief is named
to chair the panel only by virtue of his office. The start of the AVMs
term in the middle of 1993 was rather patchy. While the combination dropped
to a fourth placement in the Kuala Lumpur Championship Trophy the outfit
had the stunning shock at Hiroshima where South Korea, showing considerable
thrust and flair, exposed chinks in the armour of the Pakistan side in the
Asia Cup, an honour in its possession since the inception of the regional
contest in 1982.
However, soon the country recovered its ground and struck the purple patch
by brushing aside the challenge of all-comers and lifting the Champions
Trophy, the toughest competition in the hockey calendar, limited to six top
global nations, after a gap of 14 years. No doubt the triumph was due to
the glamour outfit, cheered and backed up by the home crowd, but credit has
to be given to the AVM who lent the motivation and direction to the side at
the headquarters of the countrys hockey.
This emphatic and convincing victory and the games supremacy among the
elitist group was followed by a few hiccups, especially at Penang in the
Azlan Shah invitational contest, where Pakistan lost a trial of strength in
penalty shoot-out. There was a further slump in the hockey fortunes as
South Korea repeated its earlier success in the Asia Cup by outstroking
Pakistan in the Asian Games. Diffidence more than zest characterised the
approach work of the squad. This was in October, 1994. But after this
shocking slip from grace and trauma at Hiroshima, considerable soul-
searching took place at home, and with extremes of effort and drill at the
camp the team at the Sydney World Cup two months later had the match-
winning prowess and resilience. Adventure took the place of lethargy;
hesitancy gave way to pace and speed. Hockey heavyweights were humbled and
Pakistan again scaled the Himalayan heights to come out as world champions.
Both Germany and Holland were edged out, the latter in the final. Such is
the unfathomable mystery of the unexpected in sport. The national squad
were the rightful winners, AVM Farooq got the cheers and accolade that were
his.
However, the World Cup was the last major success during the tenure of AVM.
At the Berlin Champions Trophy in September 1995, the 17 edition of the
competition, Pakistan could not go beyond a third place. In the SAF Games
at Madras in what was the debut of hockey the country suffered disaster.
The team was trained by the hockey chief himself. The selectors, the
majority belonging to PIA, could not utter a word against the list of the
AVM. Pakistan was pulverised by India by a whopping margin of 5-2 in the
final. Dhanraj Pillay and Mukesh Kumar showed the true Asian style and time
and again cut through the defences of Pakistan. Shahbaz, the individualist,
was slow and appeared out of rhythm. He could not make any headway through
over-elaboration. The squad returned totally battered and bruised.
Further trouble was in store for during the preparatory period for the
Olympics a good number of players staged a revolt and discipline was sent
to the winds. The AVM, who was blamed for encouraging an out-of-form
Shahbaz, was found to be weak against the players and both the manager,
Mudassar Asghar and coach Manzoorul Hasan had to bow to the players power.
Shahbaz was initially axed from the Olympic side but due to pressure of the
AVM and non-technicians in a Senate panel he was rushed to Atlanta at the
eleventh hour. The combination was disturbed for the shuffling in the
playing set impaired its co-ordination and understanding. At the lemon time
AVM Farooq was taking over the role of a manger and was going to the field
for instruction and technical advice (as was seen on TV).
Pakistan was relegated to an eighth spot in the Olympics, the worst-ever
result in the history of the country, the decline was three places down the
Seoul Olympics of 1988 where Pakistan finished fifth. The disgrace at the
Olympics stunned and shocked the fans of the game. The AVM had but to make
a second bow.
Taking his tenure as a whole it was a mixed one with the Champions Trophy
and World Cup victories touching the high mark but the closing period was a
perilous one, full of behind-the-scenes politics that resulted in a ruinous
record at the Olympics.
Hockey enthusiasts cannot but welcome the change in the hierarchy of the
federation. Nawaz, who will be having a second term as PHF President,
having earlier held the office from April 1991 to May 1993, has a difficult
job on hand. Not only the manager and the coach for the senior string have
to be nominated and confirmed but preparations in right earnest are to
start for the Champions Trophy, due to be held in Madras in December, and
Pakistan has to try its luck at the SAF Games in Kathmandu. Can Pakistan
endure the hockey setbacks of the earlier part of the year and regain its
lost place in international and regional hockey. It is a Herculean task for
the new PHF head.
Besides, there are talks of the ouster of Col Mudassar Asghar, the
Secretary, whom Tiwana during his first tenure had brought in. Can
Mudassar, who had been a part of the hockey mess created by Farooq Umar,
continue to enjoy the confidence of Tiwana, the Council, most of whose
members are dissatisfied with the Secretarys role.
Tiwana has also to come out with hockey tour plans to assess the strength
and weakness of both the junior and senior strings. More contests have to
be launched at home at the grass-root and club levels, the base of any
countrys hockey.
Discipline has to be maintained and no undue demands of the players have to
be accepted. Hockey lovers want the new president to be a tough planner
with healthy ideas. Then only can the game and the team take the right road
to progress and success.
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961019
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Tennis: responsibility of PTF and affiliated units
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A. Majid Khan
Pakistans showing on the tennis front continues to be a woefully poor and
its chances of getting a place in Group One of the 1997 Davis Cup Asia-
Oceania Zone appear beak. In fact we are struggling to avoid relegation
from Group Two to Three.
According to the draws announced last week by the International Tennis
Federation, the Asia-Oceania Zone Group two first round matches start on
Feb 7. Pakistan will take on Iran in a three-day match from Feb 7-9. The
venue has yet to be settled. It may be either Pakistan or Iran, depending
on the decision of ITF.
For a couple of years Pakistans overall standard has gone down
considerably and the officials concerned, as usual, pass the buck since
there is no proper accountability at any stage of jurisdiction.
When the new set-up of the Pakistan Tennis Federation took over a year
ago, great hopes were entertained for the uplift of the game on a
scientific line. As a matter of fact, the PTF, headed by Federal Minister
for Petroleum and Natural Resources Anwar Saifullah, started on a promising
note. No doubt he did ensure the holding of the ITF Satellite circuit last
year in which international players competed, but the arrangements made in
Karachi for holding two of the four legs were marred by adverse reports
front the ITF tournament referee.
The 1996 tennis calendar is nearing an end and this time official
statements for not holding the satellite this year, which would have been
beneficial for our leading stars as well as for our up-and-coming tennis
players are unconvincing. Thus the chance will be missed to play against
and match world class players will be missed. The circuit helps the players
to get ITF points too an also in assessing the competitive standard of our
own players.
Coming to the domestic tennis it is a sad commentary that for well over
eight years no national clay court championship was staged in Rawalpindi.
The national clay court championship was one of the three major events of
Pakistans annual tennis calendar. The other two major events are the
national grass court organised by the Punjab Tennis Association and the
national hard court staged by the Singh Tennis Association. The Rawalpindi-
Islamabad Tennis Association used to hold the national clay court
championship at the Rawalpindi Club, which event has virtually gone out of
the annual calendar. The irony is that the PTF did not much bother for the
revival of national clay court event otherwise the championship could have
been revived.
The Islamabad Tennis Association holds the Federation Cup at the Islamabad
Clubs clay courts but the PTF did not use its influence to ensure the
revival of the clay court championship. Rather it remained a silent
spectator. Alternate avenues were not tapped either.
Even the National Hard Court Championship could not be staged for the past
two years. For this lapse the Sindh Tennis Association is responsible which
is an affiliated unit of the PTF. The failure to stage this once regularly-
staged and organised event, seems a sad reflection on the provincial
association, which under the constitution, is responsible for the games
development in Sindh.
It is also disappointing that only three all-Pakistan tournaments could be
staged in nine months of the current year beginning with the ICI Open in
January in Karachi, the all Pakistan tournament in Rahimyar Khan and Khyber
Cup on an all-Pakistan basis in Peshawar.
The recently-concluded Sirajul Haq Invitational Memorial tournament at
Islamabad was not a ranking contest.
Three ranking tournaments in nine months and only two in upcountry show the
ineffectiveness of the federation to impress upon all its affiliated units
to hold the ranking events properly and regularly to help the players
assess their strength and hone their shots.
Now the domestic tennis is back in Karachi and this month the Sindh
Governors Cup was the fourth ranking event, followed by the KMC Cup
Ranking Tournament. The other new event - the Chase Open ranking
championship is scheduled to start from Oct 19 at the Karachi Club.
There may be two or three more tournaments by the end of the year but they
are considered totally inadequate to promote tennis in the country as there
is no significant tennis competitions at the divisional levels in Punjab,
Sindh, NWFP and Balochistan. The less said about other affiliated units of
the federation the better.
The provincial associations lend no help financially to the young stars who
go abroad for the ITF juniors event. The parents spend money on their sons
and daughters for the away tours. It is a different matter that the PTF
bears the tour expenses when it sends its team to the ITF youth
competition. Let the PTF and its affiliated units play a positive role in
the uplift of the game in the country before it is too late.
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961021
-------------------------------------------------------------------
World Open squash to be efficiently staged
-------------------------------------------------------------------
A. Majid Khan
KARACHI, Oct 20: Air Chief Marshal Mohammad Abbas Khattak, Chief of the Air
Staff and President of Pakistan Squash Federation, recalling the
organisational success of the 1993 World Open and Team Championship, today
expressed his total and complete confidence in PSF expertise in efficiently
staging next months PSO World Open, the richest championship of US dollars
1,30,000, here at the DHA Squash Complex.
The 20th World Open squash, first hosted in 1984 in Karachi by the Sindh
Squash Association with Aslam Sanjrani as its secretary, is to be staged
for the third time from Nov 17 in the city. The 1993 championship was
organised by the PSF .
Addressing a joint press conference after the conclusion of the sponsorship
agreement ceremony here this afternoon at the PAF War College, Air Chief
Marshal Khattak, thanked the sponsors , specially the title sponsors
Pakistan State Oil for the financial support it wishes to extend in bailing
us out when one of the sponsors withdrew at the eleventh hour of the 1993
Championships when both the World Open and the Team Championship, together
for the first time, was staged in the city.
Since then they are they are extending their financial support to the
national squash and they are the major sponsors of the 20th World Open, the
federation chief stated. The PSO has signed an agreement of Rs five million
for the world Open, a super series event of the world squash calendar, said
Air Chief Marshal Khattak who briefly addressed the mediamen while Air
Marshal Aliuddin, Senior vice-president of the federation, and Hasan Musa,
recently elected as vice-president of the World Squash Federation and who
is the Tournament Director of the World Open, answered the questions of the
Pressmen.
Air Marshal Aliuddin informed the mediamen that all the worlds leading
players and Pakistan champion of the world Jansher Khan, have entered the
championship to be staged in a grand fashion. There is tremendous response
from the foreign players to play in the World Open here and this shows our
traditional hospitalities they cherish when they return home said Air
Marshal Aliuddin.
The prize money of the 1993 World Open, was US dollars one lakh and this
time it is US dollars one lakh and thirty thousands as PSOs highest bid
was accepted by the PSA.
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961024
-------------------------------------------------------------------
Hasan Raza may make Test debut
-------------------------------------------------------------------
Samiul Hasan
FAISALABAD, Oct 24: Hasan Raza goes into history books on Thursday as the
youngest player ever to appear in a Test match when Zimbabwe and Pakistan
battle out for the series in the final game of the two-match rubber at the
Iqbal Stadium. The first Test at Sheikhupura ended in a draw.
When schoolboy Hasan Raza will be officially named in the playing side on
the opening day on Thursday, he will be 14 years and 228 days and would,
thus, break the 38-year-old record of Mushtaq Mohammad. Mushtaq, who will
see his record go out as Pakistan team manager, was 15 years and 124 days
when he made his debut against the mighty West Indies at Lahore in the
1958-59 series. "The boy (Hasan Raza) is fantastic," Mushtaq said after
supervising the training session on Wednesday morning.
Skipper Wasim Akram also looked after his fielding session and watched
Hasan Raza bat at the nets from the non-striker's end. Akram was later seen
passing on some valuable tips to the teenager after he had completed his
workouts at No 4 position. "Raza has impressed me. I haven't seen him
before but I am impressed with the way he has batted," commented Akram
after the conclusion of the training session. "He seems to be confident and
a perfect batsman."
Hasan Raza, born on March 3, 1982 in Karachi, was extremely modest. "I
don't know yet if I am playing. But if given chance, I will try to put up
my best show to justify my selection." Hasan Raza, a Matric student of the
Boys Secondary School, FC Area, earned the vote of the selectors after he
scored four centuries in the National Juniors Cup.
Though immensely talented, Hasan Raza is extremely raw at top grade
cricket. For him it will be a tough task to come to terms at such a young
age and give a good account of himself. His Test debut will not only be a
test of skills and potential but also of his nerves.
Dawn page