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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 25 January, 1996 Issue : 02/04 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from Pakistan's largest English language newspaper, the daily DAWN. DWS offers news, analysis and features of particular interest to the Pakistani Community on the Internet. Extracts from DWS can be used provided that this entire header is included at the beginning of each extract. We encourage comments & suggestions. We can be reached at: e-mail dws@dawn.khi.erum.com.pk dws%dawn%khi@sdnpk.undp.org fax +92(21) 568-3188 & 568-3801 mail Pakistan Herald Publications (Pvt.) Limited DAWN Group of Newspapers Haroon House, Karachi 74400, Pakistan TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL ADDRESS! (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

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CONTENTS

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NATIONAL NEWS

General ..........Peshawar blast: FIR registered 5 months prior to tragedy ..........Bhandara apprehends arrest, alleges persecution ..........PR privatisation okayed ..........Leghari seeks briefing on privatisation ..........Leghari briefed on privatisation: Naveed ..........Strong govt required to check HR abuses: Asma ..........HRCP seeks probe into extra-judicial killings, torture ..........Definite proof of Afghanistan, India fomenting terrorism ..........Pakistan seeks Delhi guarantee on N-plans Karachi Carnage ..........Constable among 22 killed in city violence ..........Altaf asks partymen to go into hiding ..........MQM men killed DEA official: DIG ..........Dehlavi asks govt to honour its commitments Opposition ..........Opposition senators stage walkout ..........Token walkout staged by opposition senators ..........Acerbic exchanges dominates NA proceedings ..........Treasury benches face embarrassment ---------------------------------

BUSINESS & ECONOMY

IMF tighten control over Pakistan Economy Criticism of PPL , Hashoo group deal uncalled for PPL issue: Baluchistan Assembly opposes shares transfer Only one bidder left: Govt to go ahead with sale of UBL SBP penalises 3 banks for failure to meet reserve needs Modest recovery despite inconsistency in trading patterns KSE 100-share index soars to 1526.12 points KSE index increases by 36.56 points, signal at 1600 points ---------------------------------------

EDITORIALS & FEATURES

Independence of the Judiciary-IV Ardeshir Cowasjee Private jails: Why no legal action Ghani Eirabie The rot of corruption Editorial Column Strange tidings from across the border Ayaz Amir Green signal for KMTP Editorial Column Mounting debt burden Sultan Ahmed -----------

SPORTS

PIA regain National one-day title after nine years Australia clinch World series in rain-hit thriller =================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

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NATIONAL NEWS

960123 ------------------------------------------------------------------- Peshawar blast: FIR registered 5 months prior to tragedy ------------------------------------------------------------------- Abdul Sami Paracha PESHAWAR, Jan 22: Reports compiled by leading sensitive state agencies on the tackling of Peshawar bomb blasts investigation by the NWFP law enforcement agencies have termed all the arrests made in this connection as a face saving measure and far from the hard realities of the case. Highly placed sources in different agencies confided to Dawn that hundreds of Afghan suspects rounded up from various areas of the province were charged under a general FIR dated 03-07-1995 which had been registered as a precautionary measure to be used against unidentified terrorists in case of any untoward incident and whenever necessary. It was done to avoid future embarrassment as the intelligence agencies had already conveyed an important message about the serious mishap in the wake of minor explosions and the entry of foreign terrorists in the country much before the Peshawar bomb blast in the Cantonment area in December last. There are confirmed reports that some of the senior police officials in the NWFP police have expressed their reservations to carry out the directives of their IGP regarding the investigation procedures of the case during high-level meetings. Commenting on Gen Ghaffars arrest, sources said there were many instances where the police had released blast suspects without proper investigation. They said such blunders being committed at high level have made the investigation very suspicious which now needs to be handed over to some other agency which could do it independently. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960123 ------------------------------------------------------------------- Bhandara apprehends arrest, alleges persecution ------------------------------------------------------------------- Bureau Report ISLAMABAD, Jan 22: M.P. Bhandara, chief executive of the 135-year-old Murree Brewery, has expressed the fear of his imminent arrest "as the logical consequence of my crime of hurting the business interests of the most powerful and important person of Pakistan". Talking to Dawn by telephone, he alleged that he was being "relentlessly persecuted" by the authorities and cited the "totally illegal" closure of the brewery on Jan 17 as the "latest proof" in this regard. He plans to take out a public, appeal in the national press extolling the president to intervene in the name of justice", as he put it. Talking of his fears of an imminent arrest, he claimed that he had already received information that FIR's were being drafted to implicate in one case or another and now he believed "a case may just have been found." He said recently , someone had erected a wall within the premises of the brewery along the railway track leading into the . brewery, claiming that he had been , allotted the plot in 1993 by an MNA who happened to be a member of House committee on railway. The wall was pulled down by, brewery employees on Sunday and the man lodged a complaint with the authorities. Mr Bhandara said his managers had been summoned by a magistrate on Tuesday. "They'll definitely be arrested and probably then it would be my turn to be implicated in the case," he added. Mr Bhandara's fears came to the fore when he was contacted to confirm the contents of a letter supposedly sent to President Leghari, and a copy of which was faxed to Dawn. He said the fax comprised the original and a lengthy draft which had, therefore, not been sent to the president Instead, he said, he would be taking out a public appeal and read out the contents on phone since, he claimed, his fax which was sealed along with the brewery, had yet to be restored. According to the original draft, Mr Bhandara has alleged persecution at the hands of a "high and mighty personality interested in the setting up of a brewery distillery in Sindh." He claimed that he had no objection to the setting up of new breweries but that all he desired was a "level playing field and, in particular, the permission to export our huge unutilised plant-capacity and receive non- discriminatory treatment in sales to Sindh." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960120 ------------------------------------------------------------------- PR privatisation okayed ------------------------------------------------------------------- Staff Reporter KARACHI, Jan 19: The Pakistan Railways has been permitted to go ahead with the privatisation process of its non-remunerative sections. Accordingly, the railways has completed the exercise of pre- qualifying the interested firms for taking up the contracts of sale and checking of tickets on the proposed sections. The railways proposes to give out on contracts Hyderabad- Mir-Purkhas; Hyderabad-Badin; Lahore-Narowal; Quetta-Taftan; Taxila-Havelian; and Nowshera-Dargai sections. Sources disclosed that presently the railway headquarters was processing some offers for sale and checking of tickets on the Lahore-Narowal section. The railways has fixed a bench-mark of Rs 30.25 million for the bidders, including the escalation factor. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960121 ------------------------------------------------------------------- Leghari seeks briefing on privatisation ------------------------------------------------------------------- ISLAMABAD, Jan 20: President Farooq Ahmed Khan Leghari has invited the Privatisation Commission (PC) to brief him in detail about its privatisation programme during the course of the year. The PC has firmed up plans to privatise during 1996, Pakistan Telecommunication Corporation, Sui Southern Gas Company, Kot Ado Power Station, United Bank Limited, Bankers Equity Limited, and Habib Bank Limited. In the backdrop of the ongoing media controversy over the pros and cons of selling UBL to a foreign party and the opposition PMLs total rejection of the idea, the sudden interest of the President in the affairs of the PC is being considered highly significant. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- Leghari briefed on privatisation : Naveed ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Jan 24: President Farooq Ahmed Khan Leghari was given a comprehensive presentation on the on-going privatisation process by Chairman Syed Naveed Qamar and Secretary Abdullah Yousuf of the Privatisation Commission. Denying reports that the President was concerned over the privatisation of United Bank Limited (UBL) and Pakistan Telecommunication Corporation (PTC) and had called for the postponement of sale of these units, he said the President had not asked for the briefing rather it was held on the request of the commission. Sources, claiming to be well informed, said that the President had wanted the Privatisation Commission to explain to him some of the points raised by a Lahore weekly with regard to the extent of transparency in the privatisation process. Regarding the privatisation of PTC and UBL, he said it would be held as planned. The road shows of the PTC had already been completed and soon the potential buyers would visit Pakistan to assess the price of the corporation recently converted into a private limited company, he added. Responding to a question whether the Faysal Bank of Bahrain, which earlier had qualified for the final bidding of UBL, had withdrawn, he said they had asked the government to deposit Rs 20 billion with the bank for a period of five years after its privatisation or make specific commitment for financial support. The Faysal Bank had indicated that they might withdraw if their demands were not met, he added. These demands were not acceptable and we assume that they have withdrawn them, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960121 ------------------------------------------------------------------- Strong govt required to check HR abuses: Asma ------------------------------------------------------------------- Bureau Report PESHAWAR, Jan 20: Ms Asma Jehangir, chairperson of the Human Rights Commission of Pakistan (HRCP) has said that all Pakistan lacked was a strong government will to check institutionalised human rights abuses committed by politicians, judges of the respectable courts, businessmen, landlords and influentials. She said her organisation cannot set priorities as far as human rights violations are concerned, in a society where the government as well the various communities are not used to the norms and principles of democracy. Regretting the state of political and social affairs in the country she informed the participants that the HRCP has recommended to the government that superior court judges should be appointed with the joint consent of the Prime Minister, the leader of the opposition and chief justice of Pakistan, to ensure the effective working of the judiciary in the country. To a query she said that politicians are public property and the Press has the right to expose their wrong doings in the interest of the public. She suggested that if even if judges are corrupt let the Press report such matters for the greater national interest. She asked politicians to refrain from filing defamation suits against the Press and instead face the charges framed against them. Ms Asma said that excesses in society by the police have reached an alarming stage and people were being killed at the behest of the government and influential people in fake encounters. A report about such accounts, especially in Karachi, has been prepared and submitted to the government. She was of the view that the police cannot be tamed unless it was humanised and other major changes were made in its set-up and structure. She elaborated that the investigative section should be separated from the law and order section and ministers and other dignitaries should employ their own security guards and not horrify the people by using officials protocols. To another query she said that the HRCP cannot afford to expand its charter to the whole world owing to a shortage of resources and manpower. However the Commission formally condemns the human rights abuses committed worldwide, she added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960123 ------------------------------------------------------------------- HRCP seeks probe into extra-judicial killings, torture ------------------------------------------------------------------- Staff Reporter KARACHI, Jan 22: The Human Rights Commission of Pakistan called upon the government to constitute a commission headed by a judge of the Supreme Court to thoroughly investigate allegations of custodial torture and deaths and extra-judicial killings. In a joint statement issued on Monday, Justice Dorab Patel, chairman emeritus, and Asma Jehangir, chairperson of the Human Rights Commission of Pakistan, said they were deeply disturbed by the increasing number of deaths in custody or in encounters with the law enforcement agencies in Sindh and particularly in Karachi, as well as the large number of mutilated bodies found stuffed in sacks. We are also deeply disturbed by the practice of picking up large numbers of people without any cases having been registered against them, and their implication in blind FIRs later on. The absence of any proper inquiry into these incidents is undermining law and order. We are also disturbed by allegations of custodial torture and deaths, they said. Justice Dorab Patel and Asma Jehangir demanded that commission should take punitive action against all those found guilty of resorting to extra-legal actions. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960122 ------------------------------------------------------------------- Definite proof of Afghanistan, India fomenting terrorism ------------------------------------------------------------------- Bureau Report ISLAMABAD, Jan 21: Sindh Chief Minister Syed Abdullah Shah said there was definite proof of India and Afghanistans involvement in terrorism in Karachi. The Sindh Chief Minister said Afghan President Burhanuddin Rabbani had openly supported MQMs terrorist wing and offered Altaf Hussain to set up his offices in Kabul. He accused Kabul and New Delhi of arming terrorists in Pakistan and funding MQM chief Altaf Hussain in London. Abdullah Shah said India was trying to destabilise Pakistan to avenge Muslim uprising in occupied Kashmir while Rabbani was hand in gloves with the Indian government. Abdullah Shah said he had concrete evidence of Kabul and New Delhis involvement in incidents of terrorism in Karachi. He said now terrorism was being spread to other parts of the country to create chaos and unrest. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960124 ------------------------------------------------------------------- Pakistan seeks Delhi guarantees on N-plans ------------------------------------------------------------------- GENEVA, Jan 23: Pakistan said that it expected categorical assurances that India will not carry out another nuclear test, warning failure to provide the guarantees would jeopardise conclusion of a Comprehensive Test Ban Treaty (CTBT) in the near future. We look forward to categorical assurances that such a test is not being contemplated and will not be conducted, Pakistani ambassador Munir Akram told a UN conference on disarmament. He warned that a test would certainly subvert the possibility of concluding the CTBT in the near future and added that his country would take appropriate measures if nuclear-capable missiles were deployed along its borders. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- Constable among 22 killed in city violence ------------------------------------------------------------------- Staff Reporter KARACHI, Jan 18: Twenty-two people, including a police constable , Rehan Ahmed, one of the most wanted MQM activists, his younger brother and three other party workers were killed in sporadic incidents of violence in the city raising the months death toll to 92. Rehan Ahmed, who was carrying a head money of Rs 1.5 million and was wanted in over 100 murder cases, died along with his younger brother Junaid Ahmed, his cousin Tanveer Pasha, Shaikh Zaki, and Nayab Haider. Rehans family disputed the police version and claimed that all the five had been arrested during a raid on the residence of Rehans mother-in-law in the Federal B Area. In another incident following a shoot-out, Alam Zeb, said to be an MQM (H) activist was killed. Parveen Fatima, and a constable Mohammad Ali were wounded. Unidentified terrorists also shot and killed Hamid Yar Khan a police constable in Liaquatabad. In other incidents of violence, eighteen people lost their lives. Four of them were kidnapped, tortured and killed in Korangi, and an MQM man died reportedly during interrogation. He had several bullet wounds on his body. Police claimed he had committed suicide after snatching a rifle from a constable during interrogation and shot himself dead. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- Altaf asks partymen to go into hiding ------------------------------------------------------------------- Staff Reporter KARACHI, Jan 24: MQM chief Altaf Hussain has asked all his party office-bearers and activists to go underground to avoid what he described government suppression. In a Press statement issued and copy of which was faxed to Dawn from London, Mr Hussain urged all his workers to immediately go into hiding as according to him Benazir Bhutto and her government have decided to eliminate all Mohajirs. The life of each companion is dear to me and therefore, I ask everyone of them to immediately go underground otherwise the savage government will arrest and kill them in fake encounters, he said. Reacting over the arrest of his Lyari acting chief Mohammad Yaseen and five other office-bearers in Karachi, Mr Hussain said that after their arrests no one would believe in government statements that the MQM should take part in politics and begin its political activities in the city. These statements, according to him, were being given to misguide the democratic forces. Mr Hussain said he had sent telegrams to international human rights organisation to save the lives of Mohammad Yaseen, acting chief Lyari sector, Mohammad Zakir, Musharaf Ali, Mehmood and Nasir Ajmeri. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960119 ------------------------------------------------------------------- MQM men killed DEA official: DIG ------------------------------------------------------------------- Staff Reporter KARACHI, Jan 18: One of the three MQM men who had ambushed and killed a Pakistani employee of the US Drug Enforcement Agency in North Nazimabad in August was arrested. The young suspect was identified as Ziaullah, he was arrested by police on Jan 16 on the suspicion of his being involved in rocket attacks but during interrogation he also told police that he was a member of the three-men MQM team which killed Maj Shah Nawaz Toor. The motive behind killing the DEA employee, he said, was to shut down the US Consulate in the city so that America could force the Pakistan government to accept MQM demands. It was aimed to shut down other consulates so that information about whatever happened in the city did not reach the outside world, he said. Asked when the motive was to put pressure on America, why then the Americans themselves were not killed and why a Pakistani employee was targeted, Ziaullah said that for them he (Toor) was the most important person. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960124 ------------------------------------------------------------------- Dehlavi asks govt to honour its commitments ------------------------------------------------------------------- Shamim-ur-Rahman KARACHI, Jan 23: MQM chief negotiator Ajmal Dehlavi said that the government must stop torture and extra-judicial killings and honour its commitments if restoration of peace through negotiations was its objective. There will be no delay on our part to come to the negotiating table if the above was done by the government, said Mr Dehlavi. Mr Dehlavis remarks indicated that resumption of the stalled talks was still a far cry as there seem to be no change in the positions taken by the two parties. Commenting on the federal cabinets decision about its handling of the Karachi situation, Mr Dehlavi said : It appears that they are inclined more towards the use of brute force and have forgotten that the people, whom the PPP also regards as the bastion of power, cannot be tamed by the use of force. Any solution dictated by the use of force could not be lasting and acceptable to the people, he said. Mr Dehlavi said not only the MQM but also the human rights organisations had also taken exception to the extra-judicial and custodial killings and torture of MQM activists. In this context, he mentioned the observation, made by the HRCP in which it had called for constituting a commission headed by a judge of the Supreme Court to investigate the allegations about custodial torture and deaths and extra-judicial killings. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960122 ------------------------------------------------------------------- Opposition senators stage walkout ------------------------------------------------------------------- Bureau Report ISLAMABAD, Jan 21: The opposition in Senate staged a token boycott of proceedings as a show of solidarity with their MQM colleagues. The walkout had been led by MQM senators Ishtiaq Azhar and Aftab Sheikh who accused the government of indulging in extra- judicial killings of MQM workers and supporters. Speaking on a point of order before the walkout, Sen Azhar warned the government that if the situation persisted like this then a time may come when the people would refuse to listen to us and even to Altaf Hussain. He alleged that 31 police mobiles and three APCs had cordoned off an entire locality on Saturday and staged a fake encounter which resulted in the killing of MQM workers. He was making a reference to the killings of alleged terrorist Rehan Kana and his accomplices in an encounter with law enforcing agencies. He went on to point out that one of the dead had a head money of one million rupees, insinuating that the police might have killed him to collect the reward. The two senators then staged a boycott, followed by the entire opposition. The minister of state for law, Raza Rabbani, denied the charge and claimed that the hideout of the criminals had been raided on a tip-off but when the terrorists opened fire on the police with automatic weapons and rocket launchers, the police returned the fire and killed the terrorists. To substantiate his claim of a genuine encounter, he pointed out that two policemen had also been seriously injured. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960123 ------------------------------------------------------------------- Token walkout staged by opposition senators ------------------------------------------------------------------- ISLAMABAD, Jan 22: Entire opposition in the Senate staged a walkout when Interior Minister Naseerullah Babar expressed his inability to interfere in the provincial affairs after Senator Ajmal Khattak pointed out that he and some other legislators were refused permission to meet Sheikh Rashid, MNA, and opposition leader in the Punjab Assembly Shahbaz Sharif. The country, the senator remarked, was facing serious crisis where peoples rights, constitution and democratic norms were being trampled upon but the rulers were shutting their eyes and doing nothing. Mr Khattak, who was also supported by opposition leader in the Senate Raja Zafarul Haq, Chaudhry Mohammad Anwar Bhindar and Tariq Chaudhry, said the interior ministers open admission that he was unable to do anything meant that there was no cohesion between the federal and provincial governments. He said no action was taken against a Peoples Party MNA from whom a revolver was recovered but Sheikh Rashid, who is a senior political leader, was sentenced on a false charge. Similarly, he added, Shahbaz Sharif was a senior politician and except for his relations nobody else, even members of the parliament, were allowed to meet him. Senator Bhinder of the PML pointed out that the interior minister had earlier stated on the floor of the House that government would try to sort out the matter and ensure that meetings with the detained leaders by the people, particularly members of the House, would be allowed freely. Mr Babar, however, reiterated his inability to do anything in this connection, leading to a token walkout from the House. But, the Minister for Water and Power, Ghulam Mustafa Khar, assured the House that the matter would be taken up with the provincial government to ensure that meetings were allowed. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960124 ------------------------------------------------------------------- Acerbic exchanges dominate NA proceedings ------------------------------------------------------------------- Muhammad Malick ISLAMABAD, Jan 23: Bellicose rhetoric and fiery speeches loaded with innuendoes, dominated the proceedings of the National Assembly session requisitioned by the opposition. With the alleged attack on Nawaz Sharifs life being on the agenda, the sitting had been expected to prove an explosive affair but it was perhaps the rare presence of both the prime minister and leader of the opposition in the House which seemed to have super-charged the hawks on both sides of the aisle. At the outset, ANPs Asfandyar Wali moved an adjournment motion to discuss the issue and accordingly the speaker set aside a two-hour chunk for the purpose. Later, however, the whole day was consumed by the debate, which will continue on Wednesday as well. The first salvo was fired by deputy opposition leader Gohar Ayub Khan who, accused the government of virtually every crime under the sun. The former speakers discourse swayed from one issue to another but somehow the only thing he did not touch upon was the actual incident of the attack in Hala. And that was all the opening an astute lawyer like Raza Rabbani required. The minister of state for law immediately launched a fierce frontal attack on Gohar Ayub, equating his arguments to being the angry rumblings of a disappointed man. He pointed out that Gohar Ayub had not made a single reference to the Hala incident and had only tried to create the impression of Pakistan being a country divided into mohallas and zones and divided on linguistic and ethnic lines. Dismissing the opposition claims rather disdainfully, he thundered: The whole assassination attempt charge is just a drama to seek public sympathy. Makhdoom Amin Fahim undoubtedly proved the most distinguished of the entire battery of speakers. Speaking in a composed manner, he said he would have condemned such an attack on anyone let alone the leader of the opposition. Informing the House that he had been told about the incident while he was in Karachi and had condemned it immediately. He said he was ready to go to his village and conduct a personal and totally impartial inquiry into the facts of the event and apprise the House accordingly. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- Treasury benches face embarrassment ------------------------------------------------------------------- Mohammad Malick ISLAMABAD, Jan 24: The treasury faced some very embarrassing when first, the deputy speaker refuted the governments defence of imposing a total ban on visitors of jailed parliamentarians and then the speaker, too, brushing aside the law ministers arguments, referred the matter to the House privileges committee. It all started with a privilege motion moved by opposition MNAs agitating against the government ban on meeting their jailed colleague, Sheikh Rashid. The minister of State for Law, Raza Rabbani, immediately challenged the motion on the ground that every criminal was equal in the eyes of law and that a convicted parliamentarian did not enjoy any special status as compared to an ordinary convict. After listening to the detailed deliberations of Syed Iftikhar Gillani and a sharp crisp interlude by Syed Zafar Ali Shah, the speaker concurring to their views ruled that a jailed MNA did have special privileges and declaring the motion in order referred it to the committee. All a hapless looking Mr Rabbani could do was shake his head in disbelief. That the opposition would make a strong case of its grievance was expected but the governments defence received a serious and totally unexpected setback when the deputy speaker, Zafar Ali Shah, rising languidly from his seat, tore down Rabbanis line of argument. He said an elected representative did enjoy a special status because he was not an ordinary person to begin with. The deputy speaker, known for taking the privileges of parliamentarians very seriously, went on to reason that a parliamentarian represented hundreds of thousands of people and helped resolve their problems. If Zafar Ali Shahs arguments had posed a dilemma for Mr Rabbani, Iftikhar Gillanis suave legal interpretation of the privilege only added to his growing frustration. Citing Article 66 of the Constitution, Mr Gillani argued that the ban constituted a denial of the fundamental privileges guaranteed by the Constitution. His reasoning being that where the law was silent, the privilege of the member was inviolable. He seemed to be referring to clause (2) of the Article which reads: In other respects, the powers, immunities and privileges of Majlis-i-Shoora (parliament), shall be such as may from time to time be defined by law and, until so defined, shall be such as were, immediately before the commencing day, enjoyed by the National Assembly of Pakistan and the committees thereof and its members. He opined that the government was free to regulate the jailed MNAs visits but it could not bar him from interacting with his constituents as long as he was a sitting member of the House. Speaking about the alleged attack on Mian Nawaz Sharif, he criticised the government for needlessly blowing up the issue whereas all it had to do was express its concern and order an inquiry. Even now I hope the president and the prime minister will call the leader of the opposition and not only register their concern but also order inquiries into such a sensitive matter. Mr Gillani had a point to make when he lamented that if a soldier or a civil servant was attacked it was considered a serious attack on the institution itself, adding pointedly Doesnt the leader of the opposition represent the institution of parliament, the most sacred of all the institutions. Imploring the government to foster new healthy traditions, he warned that unless this happened, democracy would remain under a serious threat. The Sheikh Rashid affair proved the only real source of friction for the day because an intelligent manipulation of the days agenda ensured that the overwhelming part of the remaining sitting was taken up in legislation. The government managed to lay another six presidential ordinances and introduce three bills in the House. It was, therefore, only at the fag-end of the sitting that the House could take up debating the law and order situation, a pseudonym for discussing the Hala incident. Oppositions Makhdoom Javed Hashmi took up the cudgels for the day but thanks to his over emotional and college campus style debate, he soon lost the attention of the House.

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BUSINESS & ECONOMY

960125 ------------------------------------------------------------------- IMF tightens control over Pakistan economy ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, Jan 23: Details of the terms and conditions of the 15-month standby loan arrangement worth 600 million dollars between Islamabad and the International Monetary Fund (IMF), signed last month, show an all-pervasive role for the IMF in Pakistans economic policy making and financial management, according to documents made available to Dawn. Proposing strict performance criteria, including fixing of floors and ceilings on variables, the fund has given its own unilateral definitions of reserve money, net foreign and domestic assets of the State Bank, domestic liquidity, net foreign and domestic assets of the banking system, budgetary support, overall budget deficit, net external financing, net domestic non-bank financing, CBR revenue and public and publicly-guaranteed external debt, leaving no helpful ambiguity for the government to fudge the data to its advantage. The reporting requirements of the standby arrangement are very stringent and call for supply of data to the Middle Eastern department of the fund through the office of the resident representative according to the following schedule:  Monthly statement on CBR tax collection and surcharges;  Privatisation proceeds from abroad for 1994-95 and for each quarter of 1995-96;  Deposits into, and withdrawals from, the privatisation accounts for each quarter of 1994-95 and 1995-96 (with regard to withdrawals, the supplier of data is required to specify a) those which constitute budgetary use of privatisation proceeds; b)those which constitute costs of privatisation; and c) Others with full particulars about the purpose;  Quarterly statement showing capital receipts and disbursements including repayments of bonds, recovery of loans from provinces and others;  Quarterly data on external financing, including project aid, commodity aid, food aid, and other non-project financing (including suppliers credit);  The following monthly monetary data on a last Thursday basis, both at current and programme exchange rates, beginning in June 1995: a) monetary survey, b) accounts of the State Bank, c) consolidation accounts of the scheduled banks, and d) net credit to government;  The same tables in item 6, but on an end-quarter basis (including the data for end-June, 1995), both at current and programme exchange rates;  The following quarterly data on external debt for 1994-95 and 1995- 96: a) stock of public and publicly-guaranteed external debt (including deferred payments arrangement), with initial maturities of up to and including one year; and b) loan-by-loan detail of the contraction of new medium and long term non-concessional public and publicly-guaranteed external debt with separate identification of the contraction of debt with an initial maturity of over one year and up to and including five years. The IMF has also put a strict ceiling on public and publicly- guaranteed short-term foreign debt, amounting to 1.05 billion dollars for the quarter ending March, 1996, down from 1.1 billion dollars fixed for the period ending December, 1995. But for the three months ending June, 1996 the ceiling has been reduced to one billion dollars which remains unchanged for the two subsequent quarters. The country has been further restricted from contracting non- concessional medium- and long-term public and publicly-guaranteed external debt with a ceiling of 2.35 billion dollars fixed for the period ending December 1995. This includes 350 million dollars with an initial maturity of over one year and up to five years but excludes public and publicly-guaranteed loans in the energy sector. In the subsequent two quarters, ceilings for debt contracting have been fixed at 2.65 billion dollars and 2.95 billion dollars respectively, but for the quarter ending September 1996 this ceiling has been drastically curtailed to 600 million dollars, improving, however, to 900 million dollars for the quarter ending December, 1996. These amounts include 450 million dollars of debt with initial maturity of over one year and up to five years for the period ending March 1996, 600 million dollars for the quarter ending June 1996, 350 million dollars for September 1996 and 400 million dollars for December 1996. The ceilings cover the entire non-concessional borrowing, including loans from multilateral donors and consortium members. Loans with a maturity of more than 12 years will also be counted against the ceilings. Loans will be counted against the ceilings on contraction rather than disbursement basis. The definition of concessional lending has been modified to the effect that loans with a grant elements of 35 per cent with currency reference rate (CRR) rather than a normal 10 per cent will be deemed as concessional. Quarterly ceilings are cumulative flows. All financial instruments or arrangements, like currency swaps, leasing etc, will be counted against the ceilings. The public and publicly-guaranteed external debt covers all external debt incurred or guaranteed by the federal government. It excludes: a) the foreign currency deposit liabilities of the banking system; and b) the outstanding stocks of FEBCs, DBCs, and FCBCs. The short-term external debt includes loans with original maturity of up to and including one year while medium- and long-term debt consists of debt with initial maturity of over one year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960123 ------------------------------------------------------------------- Criticism of PPL, Hashoo group deal uncalled for ------------------------------------------------------------------- Bureau Report ISLAMABAD, Jan 22: A former federal minister claims that the criticism of a recent deal between Pakistan Petroleum (PPL) and the Hashoo group is totally uncalled for and amounts to discouraging foreign investment. Sardar Wazir Ahmed Jogezai, said the shares purchased by Hashoo group had previously been held by Burma Castrol. Nobody had any objection when these shares were held by a foreign company, he remarked. He said instead of being happy that a Pakistani has purchased the shares, people had started raising frivolous objections. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- PPL issue : Balochistan Assembly opposes shares transfer ------------------------------------------------------------------- Saleem Shahid QUETTA, Jan 24: The Balochistan Assembly opposed the move to hand over shares of the Pakistan Petroleum (PPL) to the Hashoo group through its privatisation, without taking the assembly into confidence. A resolution in this regard was moved in the House by Balochistan Finance Minister Jaffar Khan Mandokhel, deputy opposition leader Maulana Abdul Bari and Mir Zahoor Hussain Khan Khosa of JWP. It was adopted unanimously. Maulana Bari of the JUI criticised federal governments decision regarding privatisation of the PPL and described it a conspiracy against the economy of Balochistan. Under the constitution, the federal government cannot take any decision about the natural resources of a province without taking that province into confidence, he said, adding that the Economic Coordination Council (ECC) made this move without consulting the Balochistan government or its assembly. It was a serious violation of the provincial autonomy and the people of this province would not allow anybody to take a decision which imperilled its economic system and sources of income, he warned. Finance Minister, Mandokel (of PML), taking part in the discussion on the resolution, said it was a great injustice to Balochistan that the ECC did not even inform the provincial government about its plan to hand over the shares of the PPL to Hashoo group. He claimed that over 2000 people were recruited in the PPL on political basis by the government during the last two years which increased the expenditures of the gas companies. On the basis of this increase in the expenditure, he said, the share of Balochistan in the development surcharge on gas was reduced. Our 50 per cent revenue depend on this surcharge and if it is reduced the Balochistan economy would completely collapse, the finance minister warned. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960124 ------------------------------------------------------------------- Only one bidder left : Govt to go ahead with sale of UBL ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Jan 23: The government plans to go ahead with the bidding for the sale of United Bank Limited (UBL), despite the fact that only one bidder is left in the arena, Federal Minister for Finance Makhdoom Shahbuddin told the Senate. Faysal Bank of Bahrain, one of the two qualified bidders expressed its inability to participate in the final bidding. The minister rejected opposition criticism that the government was privatising the bank in undue haste. We will see if a reasonable bid is offered, otherwise fresh bids will be invited, the minister said. Earlier former finance minister Senator Sartaj Aziz demanded of the government to postpone the privatisation of the bank, till it recovered from the present illness. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960124 ------------------------------------------------------------------- SBP penalises 3 banks for failure to meet reserve needs ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Jan 23: The State Bank of Pakistan (SBP) penalised three banks for their failure to meet the mandatory reserve requirement and warned two other banks to refrain from excess lending or else face a similar action. The SBP did not release the names of the banks penalised but banking industry sources said the axe has fallen on Citibank, ABN Amro Bank and Askari Commercial Bank. Habib Bank and Allied Bank received warnings only. They said the SBP directed Citibank, ABN Amro and Askari Bank to deposit 2.0 per cent of their respective time and demand liabilities as on January 18 and gave them 48 hours to comply to it. No spokesman for any of the five banks was available to explain the position of the bank concerned. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960120 ------------------------------------------------------------------- Modest recovery despite inconsistency in trading patterns ------------------------------------------------------------------- Mohammad Aslam Stocks prices recovered modestly during the preceding week but buying lacked the aggressiveness associated with a bull market. The Karachi Stock 100-share index, after hitting the 1,500 points mark fell to close around 1492.10. The KSE all share index also rose fractionally. It was last quoted around 834.90. The market capitalisation also rose by about Rs. 2 billion around 320 billion as compared to Rs. 328.351 billion a week, thanks to better performance put in by the blue chips. There was, however, inconsistency in the trading pattern as some bad external news did not allow investors to plan for the long-term and they just changed positions depending on the background development. Dividend news, mostly from the modaraba companies were disappointing. The Karachi Stock Exchange index of share prices posted fresh gain of 2.46 points at 1,491.02 as compared to 1,488.56 a day earlier, reflecting the strength of base shares. The process of recovery is expected to be initiated in a big way by the investment shares under the lead of low-priced issues bank shares. Most of them are already rising modestly, major gainers among them being Al-Faysal Bank, Asset Bank, JOV, Bank of Punjab, BSJS, Bank Al- Habib, Faysal and Metropolitan Ban. ICP mutual funds ruled firm as most of them ended with fresh gains but modarabas and leasing shares ruled on both sides of the fence followed by news of blank years. Insurance shares rose under the lead of leading among the including Dadabhoy, Alico, and some others but others fell fractionally. Bulk of the support in synthetic shares remained centred around Dhan Fibre, and Ibrahim Fibre, which were traded modestly. Dewan Salman, which is being quoted spot after initial fall managed to finish with a good gain. Textiles shares were fractionally traded at the falling prices, but leading among them including Dewan Textiles, and Shafiq Textiles suffered fresh sharp decline. Lucky Cement in the cement sector was actively traded in each session on strong speculative buying but others stayed mixed. Energy shares generally rose. But bulk of the support remained centred around Hub-Power and the newly turned active, Sitara Energy. Auto shares were traded on both ways but Atlas Honda Cars managed to look up on higher sale projections after the introduction of new brands. PTC vouchers in the transport sector maintained its firm posture and stood firm above Rs. 30 amid heavy volume in each session, totalling well over 5 million shares. Most of the MNCs in the chemical and pharma sector maintained their recovery trend and ended higher under the lead of BOC, Engro Chemicals, ICI Pakistan, Welcome Pakistan, and some others. But by and large Hub-Power, PTC vouchers, ICI Pakistan, Lucky Cement, Faysal Bank and Sitara Energy were massively traded in each session, according for more than 90 percent of the total volume. Trading volume soared to over 100 million shares from the last weeks 87 million shares as most of the current favourites were massively traded under the lead of Hub-Power and PTC vouchers, although both ways as after initial rise they ran into profit-selling. But in the meanwhile, some more shares joined the rank of active under the lad of Fauji Fertiliser, ICI Pakistan, and Sitara Energy, which were also actively traded mostly on the higher side owing to some positive background news about earnings. Reports of higher earning also triggered heavy buying in some of the insurance shares under the lead of EFU and Metro Life Insurance which were traded higher on large volumes. Other actively traded shares were led by Lucky Cement, Faysal Bank, Honda Atlas Cars, Schon Bank, Picic LTV Modaraba, Ibrahim Fibre, Dhan Fibre, Bank of Punjab, and Indus Fruits. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960124 ------------------------------------------------------------------- KSE 100-share index soars to 1526.12 points ------------------------------------------------------------------- Commerce Reporter KARACHI, Jan 23: The Karachi Stock Exchange index of 100-share soared by another 15.16 points at 1,526.12, consolidating its position well above the psychological barrier of 1,500 points. Plus signs dominated the list, with some of the leading shares in the forefront of gainers. Adamjee Insurance, for instance, came in for renewed strong support and added the overnight gain of Rs 5, another Rs 3.50. ICP mutual funds consolidated the overnight gains and so did most of the other investment shares, notably the bank ones, which rose further but by fractions. Insurance shares, however, rose further under the lead of Adamjee and followed by Century, EFU and Dadabhoy Insurance, which posted gains ranging from one rupee to 5. Other good gainers were led by MNCs, notably Pakistan Gum, Reckitt and Colman, Fauji Fertiliser, ICI Pakistan, and PSO, rising by one rupee to Rs 3. Some of the MNCs, however, remained under pressure and were quoted lower by one rupee to Rs 1.75, notable losers among them being Gillette Pakistan, BOC Pakistan, Pakistan Refinery, Wyeth Lab and Dawood Hercules. Other prominent losers were led by Al-Abid Silk, Fateh Industries, and Bawany Sugar, falling by one rupee to Rs 2. Hub-Power topped the list of most actives, up 70 paisa on 4.517 shares followed by PTC vouchers, firm 15 paisa on 4.095 million shares, Lucky Cement, off one rupee on 1.594 million shares, Faysal Bank, steady 15 paisa on 632,000 shares, Fauji fertiliser, up Rs 2.40 on 694,700 shares, ICI Pakistan, up 35 paisa on 567,700 shares, Sitara Energy, higher 85 paisa on 420,000 shares and LTV Modaraba, lower five paisa on 286,000 shares. Other actives were led by Askari Bank, which fell 25 paisa, followed by Dhan Fibre, up 20 paisa on 166,500 shares, Genertech Pakistan, up 75 paisa on 194,000 shares, and Tri-Pack Films, lower 25 paisa on 115,000 shares. Trading volume soared to 23.143 million shares thanks to heavy business of 2.100 million shares in Hub-Power and a million shares in PTC shares. There were 300 actives, out of which 128 shares rose, while 104 fell, with 68 holding on to the last levels. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- KSE index increases by 36.56 points, signals at 1600 points ------------------------------------------------------------------- Commerce Reporter KARACHI, Jan 24: Stocks rose across a broad on heavy foreign buying, lifting the KSE 100-share index by another about 37 points. The markets firm stance and uppish leaning is also evident in a big fresh increase of 36.56 points in the KSE 100-share index at 1,562.68 as compared to 1,5626.12 a day earlier, signalling that its next chart point could be 1,600 points before the month is out. Bulk of the support, however, remained centred around PTC vouchers, which were massively traded and the interesting feature was that it crossed the barrier of Rs 32 after several months of sluggishness. Hub-Power followed it, rising sharply on active follow-up support and was traded massively. Lucky Cement, Fauji Fertiliser and ICI Pakistan have recently joined the selected band of current favourites and were again heavily traded mostly at the higher levels. Adamjee Insurance, which has been dormant for the last several weeks also burst into activity and rose sharply on news of strong foreign buying. ICI Pakistan, Fauji Fertiliser, Faysal Bank, Sitara Energy, Ibrahim Fibre and Askari Bank were among the other actives. Other big gainers were led by PSO, Lever Brothers, Brooke Bond, Crescent Bank, Sui Southern and Sui Northern. Losers were led by Fazal Textiles, National Fibre, Telecard, Pakistan Refinery, Dawood Hercules and Dadabhoy Insurance. The most active list was again topped by PTC vouchers, up Rs 2.40 on 11.775 million shares followed by Hub_power, higher 80 paisa on 7.564 million shares, Lucky Cement, higher 60 paisa on 1.162 million shares and Fauji Fertiliser, easy five paisa on 511,000 shares. Trading volume rose to 27 million shares from the previous 23 million shares, while gainers outpaced losers by a big margin at 159 to 75, with 70 holding on to the last levels. DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* DAWN FACTS Another first from the DAWN Group of Newspapers --- the people who brought you the first on-line newspaper from Pakistan --- comes DAWN Facts, a new and powerful Fax-on-Demand service, the first service of its kind in Pakistan, giving you access to a range of information and services. Covering all spheres of life, the service arms you with facts to guide you through the maze of life, corporate and private, in Pakistan. With information on the foreign exchange rates, stock market movements, the weather and a complete entertainment guide, DAWN Facts is your one- stop source of information. DAWN Facts is available 24 hours a day, 7 days a week! DAWN Facts +92(21) 111-777-111 DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. Annual Subscription Rates : Latin America & Caribbean US$ 93 Rs. 2,700 North America & Australasia US$ 93 Rs. 2,700 Africa, East Asia Europe & UK US$ 63 Rs. 1,824 Middle East, Indian Sub-Continent & CAS US$ 63 Rs. 1,824 Please send the following information : Payments (payable to Herald) can be by crossed cheque (for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). Name, Postal Address, Telephone, Fax, e-mail address, old subscription number (where applicable). 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EDITORIALS & FEATURES

960119 ------------------------------------------------------------------- Independence of the judiciary  IV ------------------------------------------------------------------- Ardeshir Cowasjee WHEN a minister, or a government servant, is afraid to stand up and be counted and chooses to speak anonymously through a third person, who then conveys the message to the people through the government news agency, the APP, it is safe to presume that he is prevaricating, that the opposite of what he said was true. Based on this premise, a spokesman for the government on January 14 would seem to have confirmed that the government held in respect neither the Chief Justice of Pakistan nor the other judges nor the judiciary, and that the Chief Justice had been harassed. APP revealed that the statement emanated from the office of the Attorney-General. The Chief Justice, worried about the safety of his family, moved them all to Islamabad and then abroad. The CJs nephew-cum- son-in-law, Parvez Ali Shah, whose house was raided by the government and who was then arbitrarily suspended from government service, on December 18 filed a petition (CP 2469-95) in the Sindh High Court challenging this suspension. It was heard by Acting CJ Hafiz Memon the same day. He ordered that the governments comments should reach his court by December 31, and the case was adjourned to January 11. There was no response from the government and the case was again adjourned to January 18. So far the government maintains its silence. The case is bound to be adjourned again and again. Parvez Ali Shahs brother, Ayaz Ali Shah of PIA, has also been suspended on a vague excuse. The Attorney-General and his law officers and advisers must surely realise that such acts by the government smack of pure fascism. According to a report, on January 15, Attorney-General Qazi Jameel vehemently denied that he had asked Sharifuddin Pirzada to represent the government in the judges case now being heard in the Supreme Court. Sharifuddin, however, maintains that the AG rang him up in November saying that at the AGs request he had been accepted by the court as an amicus curiae, but that the AG would prefer to engage Sharifuddin to represent the state. Sharifuddin declined the offer. Thanks to the governments bungling and the unsuccessful attempts made to get the CJ to toe the government line, the judges case which vitally concerns the independence of the judiciary has attracted the attention it merits. The people, the Bar Associations, and the Fourth Estate have rallied round. After all, Rule 165 of the Pakistan Legal Practitioners and Bar Council Rules, 1976, makes it obligatory for all advocates to prevent political considerations from outweighing judicial fitness in the appointment and selection of judges. It also urges each practitioner of law to protest earnestly and actively against the appointment or selection of persons who are unsuitable for the Bench. The members of Wukala Mahaz Barai Tahaffuz-i-Dastur, a specialised body of Idara Tehqiq Qanoon Pakistan (The Pakistan Institute of Legal Research) unanimously agreed to act and filed on the 16th of this month: (1) a complaint under Article 209(5) of the Constitution to the President for the removal of the respondent judge (additional Judge Agha Rafique of the SHC) on the ground of misconduct; (2) a petition in the Supreme Court against Federation of Pakistan and Additional Judge Agha Rafique under Article 184(3) for the enforcement of the fundamental rights of practising lawyers; (3) a petition in the Supreme Court under Article 184(3) against the Federation of Pakistan, the CJ of the Peshawar High Court, and Mohammed Arif Khan (who had filed in that court a petition challenging the appointment of Chief Justice of Pakistan Sajjad Ali Shah) for the enforcement of the fundamental rights of practising lawyers, restraining the federation from making unlawful and mala-fide interference in the judicial arm of the state. It, inter alia, prays that the court declare that WP 1172/95 filed in Peshawar is mala fide, having been inspired by the federation in pursuit of its vendetta against the Chief Justice of Pakistan; (4) an application under Article 186(a) requesting the transfer of WP 1172/95 (pending in the Peshawar HC) to the Supreme Court. Dr Abdul Basit, the Founder Director of the ITQ, has also published a pamphlet entitled Law Lions and the Pussy Cat  resistance Campaign of the Pakistan Bar against Zardari Power Elite. The full texts of the above documents are contained in this pamphlet. Now let us examine the fate of those whose lives and liberty fall within the purview of the judiciary: MQM Senators  Ishtiaq Azhar, bailed out after 22 months; Aftab Ahmad Shaikh, under house arrest in Hyderabad; Nasreen Jalil, under house arrest in Karachi; Zahid Akhtar, under house arrest in Karachi. MQM MPAs of Sindh  10 have fled the country; six are in hiding in the country; Dr Farooq Sattar, former mayor of Karachi and now leader of the opposition in the Sindh Assembly, has been in jail for close to two years and has this week been put in solitary confinement in Karachi jail; one is in Hyderabad jail; six are in Adiala jail in Rawalpindi; two on the negotiation committee have been enlarged on bail. MQM party members  700 odd are incarcerated in Islamabad in camps euphemistically termed as safe houses. In jail  50 Adiala; 1,000 Karachi; 28 Landhi; 287 Khairpur; 300 Sukkur; 250 Larkana; 200 Jacobabad; 400 Hyderabad; 167 Nara; 77 Mirpurkhas. In camps  300 Sohrab Goth; 50 National Stadium; 500 Nazimabad; 1,800 Khwaja Ajmer Nagri; 1,500 Kalakot; 350 New Karachi; 85 Korangi; 20 Gulberg; 35 Gulbahar; 22 Mojka. FIRs against 3,800 have been filed but no charges have so far been framed. The rest are not being produced in court and are incarcerated allegedly for murder, conspiracy to murder, riot, arson, civil disobedience, theft, wilful damage, etc. etc. Special reference must be made to the MQM propaganda man, Kunwar Khalid Yunus, a former MNA. He has been jailed in Landhi for almost two years, he is brought to the court regularly but has so far not been charged. He rings me whenever he can to tell me of his fears of extra-judicial murder whilst in custody. Qazi Khalid Ali, the MPA and advocate in charge of MQM legal affairs, maintains that he constantly seeks redress for his incarcerated party members but none has been provided to him since the departure of the former Chief Justice of the SHC, Nasir Aslam Zahid. I have explained to him that the present Acting Chief Justice, Hafiz Memon, is a good and humane human being but that his acting status imposes restraints upon him. Khalid has handed me a computerised print-out detailing the suffering of all those in custody, which I am forwarding to the acting Chief Justice. I can say without fear of any contradiction that if we had a truly independent judiciary over 50 per cent of those now locked up would be home and free. Back to the judges case scheduled to recommence on January 21. Hearings started at the very beginning of November and no progress has been made. Now that the former Attorney-General, Yahya Bakhtiar, has been brought in to defend the governments case, there is no reason why there should not be further adjournments. He may well be sent away to attend various international conferences. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960119 ------------------------------------------------------------------- Private jails: why no legal action? ------------------------------------------------------------------- Ghani Eirabie IT is good to know that the Prime Minister has sent down her human rights adviser to recover bonded haris from private jails in Sindh and there are plans to rehabilitate them. But it is disturbing to find no news of any police crackdown or arrest of any of wrong-doers on charge of practising slavery, forbidden by both law and religion. If no law was violated by the misuse of haris as free field labour or the sexual abuse of their women in the havelis, there should not have been any fanfare over their retrieval by the Prime Ministers aide. But if forcible detention of human beings in private jails in the 20th century and the humiliation of hapless women in the Islamic Republic of Pakistan constitute a criminal offence, how come the perpetrators of the crime have not been hauled up. Also how come, no district official D.C. or S.P. has been suspended for grave dereliction of duty. There is something seriously wrong with our society; the evil can be identified as continuation of the feudal scourge. The much vaunted land reforms of President Ayub Khan and Prime Minister Zulfiqar Ali Bhutto were cosmetic, half-hearted measures, and they resulted neither in ensuring distributive justice, nor in dilution of the waderas political clout. Lest it be presumed that the feudal virus infects Sindh alone, one needs to recall a hair-raising episode of July 5 last when a housewife was produced before the Lahore High Court, tied up in chains  not as an officially sentenced criminal from a state prison-house, but as the inmate of a private jail, produced exactly as found by the court bailiff  chained and shackled. The 40-year old Sakina had been abducted by landlord Dost Mohammad of Malakwal (Mandi Bahauddin) following her husband Allah Dittas failure to repay an alleged loan of Rs 5,000 and consigned to a dungeon  and used as field labour during the day and for carnal pleasure at night. Also confined with her were her two young boys aged four and 11; while her two growing- up daughters were held in slavery by a neighbouring zamindar. The difference, however, lies in the way the two provinces have reacted. The Lahore High Court has the landlord arrested and a case registered against him on charges of abduction, illegal confinement, and murder of the 15-day infant allegedly killed in the kicking around of Sakina at the time of her abduction. The Court sharply rebuked the SHO for kow-towing to the local influentials and threatened action. As against this, there are no reports of the Sindh High Court taking any suo motto notice of the several publicly-disclosed cases of unlawful confinement, torture and rape each of them more serious than the one in Punjab. The Sindhi Press has long been reporting the existence of private jails and even torture centres across the land, particularly in places like Tando Allahyar and Sanghar and Umerkot  and at one time, the papers featured the private prison of Sardar Khair Mohammad Khokhar  but there has seldom been any response from the administration. The credit for the latest raids too goes not to the police but to human rights activists. It was the workers of the Jeay Sindh Taraqqi-Pasand Party that made a surprise raid this month on the private jail of landlord Amir Shah in Deh Manyan in taluka Gularchi of Badin district and rescued 40 bonded haris including 21 women and children. The modus operandi is the same in trapping both landless peasants and brick-kiln workers namely lending them money and having them sign blank papers and levying a rate of interest that would shame even a Jewish money-lender, and escalating the payable amount to a level that no hari or worker can pay back in a life-time. That manoeuvre ties up the entire family in bondage, generation after generation and reduces them to the level of chattel, transferred from one owner to another. This loan- sharking is the root-cause of the evil and has to be stamped out with all the force of law. If the present battery of laws is not enough, a new presidential ordinance can be issued repudiating all such loans. There is nothing very novel about the idea; rural indebtedness has been liquidated by governmental fiat in the past too  in the pre-partition Punjab and in several provinces of post-Partition India. It needs to be repeated in todays Pakistan. Even failing such a measure, non-payment of debts is something to be dealt with through courts of law and not treated as justification for enslavement of the indebted family. In the case of the Malakwal case, the Lahore High Court directed the landlord that if he was owed any money, he should file a civil suit to recover his legitimate dues but he could not take the law into his own hands. Over and above the promulgation of an ordinance liquidating illegally inflated debts, several other measures are also indicated. These include another instalment of honest-to-God land reforms, breaking up overly large fiefs and distributing the released land fairly among the landless peasants. The liquidation of feudalism is imperative if any equitable economic or representative political system is to succeed in Pakistan. But this is a long-term measure, for which ground has to be prepared by sustained vigorous campaigning over a period of time. But until the ultimate goal is achieved, the more glaring of the abuses of the feudal system have to be exposed and purged; and topping the list are such vicious practices as enslaving hapless farm peasants and factory workers through fake loans and holding them to ransom in private jails or behind barbed-wire fences, and using men as free field labour and their women for carnal pleasure. Equally important is the urgency of retrieving the bureaucracy from the stranglehold of the waderas. It is common knowledge that the local influentials employ their political clout, acquired through domination of the legislators and consequently of the party governments, to influence the recruitment, promotion, posting and transfer of district, police and revenue officials, who then, impelled by self-interest, tend to defer to the wishes of the landlords and even cover up their criminal activities. This is confirmed by the Lahore High Courts rebuke to the area police office and by the Hyderabad statement of Prime Ministers aide Kamran Rizvi that he had taken very serious notice of the indifferent attitude of the police and the administration and ordered a judicial inquiry. However, the unholy nexus between the bureaucrats and the local influentials will not end until political tampering with the administration has been eliminated. None of these objectives can be achieved without mobilising public opinion; and the primary responsibility for arousing popular consciousness lies with the national Press which is now free enough to play a meaningful role in ridding the society of its scourges. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960120 ------------------------------------------------------------------- The rot of corruption ------------------------------------------------------------------- Editorial Column THE Indian law enforcement agencies have moved against some political leaders on charges of- corruption. One of them is the leader of the opposition, Mr. L.K. Advani. Had all the gentlemen concerned belonged only to the Bharatiya Janata Party, the main rival of the ruling Congress-I and leading contender for power in the forthcoming general elections, one could have dismissed the matter as another case of a government using its power to corner its opponents. But three people wanted by the police in a Rs 650 million bribery scandal also happen to be central ministers. They have now resigned from office regarding this as the only honorable course to follow in such circumstances, until their innocence is proved. This is not quite an extraordinary event, at least not in the context of established democracies. Political corruption is not something unheard of in the developed countries of the West as well as in the Third World. Some politicians, especially those in office, are known to "take with both hands". Neither is it unusual in the countries where accountability is the established norm, for persons in office to resign when serious charges are brought against them. Many a political career has been ruined because of disclosures of improprieties and wrongdoing. What is significant about the development in India is the fact that the Central Bureau of Investigation could proceed in the matter independently and the prime minister did not try to protect his ministers. Presumably the law will now take its course. One wonders why this cannot happen in Pakistan. Political corruption has reached its highest point in this country. With Pakistan rated as the third most corrupt state in the world by Transparency International, it has now come to be widely accepted that corruption at all levels is a fact of life. But it is time we shed our tolerant attitude towards this evil and something was done to eradicate political corruption which is the root of all other evils in politics, economics and administration. When those wielding political power are susceptible to amassing wealth through grafts, commissions and kickbacks, they destroy the people's trust in government. This also distorts national planning because, in many cases, an investor's capacity to grease palms rather than the feasibility and importance of a project determines whether or not the necessary clearance and facilities would be forthcoming. This can be extremely demoralizing. It is disturbing that the ruling party which has had charges of corruption leveled against some of its functionaries and their family members has chosen to treat the matter with studied indifference. There has been a lot of talk about weeding out corruption and charges have been brought against politiciansalbeit those in the opposition. Not that the exhausters are angels who did no wrong when they ruled the roost. But taking them to task while turning a blind eye to corrupt politicians in the ruling party hardly lends credibility to the whole exercise. Hence if the prime minister really means what she says about her resolve to root out corruption, she should make a beginning with members of her own party and their kith and kin. This will reassure the people that she is not indulging in a witch-hunt against her opponents but is actively seeking to inject a measure of honesty and rectitude into politics. It will also deny the opposition an opportunity to present itself as a target of political victimization. It is time the Federal Anti-Corruption Committee was strengthened and its scope and powers enhanced. Comprising 19 members of the National Assembly, the FACC has found itself quite helpless before the power and reach of the corrupt and the protection they receive from their patrons and benefactors in the highest quarters. This is a situation which needs to be corrected right away. The composition of the FACC must be changed and all major parties, including those in the opposition, should be represented in the committee. It should also be given independent powers of investigation and prosecution. If the FACC charges any holder of public office with corruption, is essential that he/she be asked to resign until the matter has been adjudged with finality. This is important if a fair trial is to be held. Above all, those found guilty of corruption should be deprived of their ill- gotten wealth apart from whatever other punishment is meted out to them. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960122 ------------------------------------------------------------------- Strange tidings from across the border ------------------------------------------------------------------- Ayaz Amir WHAT are Pakistanis supposed to make of the bribery scandal which has shaken the Indian political establishment? After being accused of receiving hefty payments from a leading Indian businessman, three cabinet ministers have resigned while the BJP leader, Lal Krishna Advani, has resigned from the Lok Sabha saying that he first wants his name to be cleared in court. No one as yet has been proven guilty, the Central Bureau of Investigation still being in the process of filing charges against the accused. But even before the start of legal procedures, the ministers named in the scandal have thought it proper to step down from the cabinet just as Advani who is a national leader has thought it fit to resign from the Lok Sabha. By this single act alone Indian politics are not placed on a higher pedestal than the practice of this art in Pakistan. India in general and its politics in particular are as corrupt and sordid as anything to be found in this country. After all, we have more in common with each other than just our mutual antipathy. Even so, there must be some difference somewhere because what has just happened in India would be unthinkable in Pakistan. Politicians and other leaders here are made of sterner stuff. They never resign, usually not for anything in the world, and certainly not for anything as inconsequential as a suspicion of bribery. Since the last ten years, during which with the restoration of democracy a measure of openness has entered Pakistani politics, the cupboards of the Islamic Republic have rattled with the skeletons of the most incredible scandals. But no one has been punished as a consequence. Nor has any champion of democracy ever entertained the mind-boggling thought of quitting office even when accused of things for which there is reasonable proof. Indeed, although the scale of corruption has reached epic proportions, it would be considered a laughable proposition in Pakistan to suggest that a serious effort should be made to clean the higher echelons of government which today set the pace of national corruption. And what is the precise nature of the charges in the current Indian scandal? That over a period of four years a clutch of Indian politicians took bribes totalling 30 million dollars from Surendra Jain, the businessman who is the key suspect in the case. Amazing. Thirty million dollars divided among a fairly long list of politicians and spread over four years. In Pakistan these days 30 million dollars is small change that can change hands during the course of a single deal. One of the most mirth- provoking words in the Pakistani political lexicon these days is transparency. Everyone swears by it even if everyone knows that today nothing is transparent: not arms and business deals nor the gargantua of privatisation. In our democracy today people have a fairly shrewd idea of the broad outlines of what is happening, about who is making what and who is fronting for whom but without being privy to all the details. Take Asif Zardaris ponies of whom it is generally known that they are stabled in the Prime ministers house. But what is their exact number? How much money has been paid for them? Does their stabling in the prime ministers house promote the progress and prosperity of the nation? To these questions there are no clear answers. The congenitally simple-minded can of course object that whereas in the Indian scandal there are precise grounds available to justify prosecution, there has been nothing like this in Pakistan. Was not the co-operatives scandal in 1989 an open-and-shut case? Did it not deprive half a million people of their savings? And yet did any heads roll as a consequence? If there were some high priests of the then PML-N government involved in the intricacies of that scandal so was Senator Gulzar Ahmed who has always been close to the present prime minister. No harm appears to have come to any of them. And what about General Aslam Begs reluctant admission that, yes, he took 14 crores, no less, from that champion banker, Yunus Habib of the sadly-defunct Mehran Bank? If ever a Nelsonian eye was turned towards anything in this country where the sturdy fashion all along has been to brush unwelcome facts under the carpet, it was towards this admission which in any other country pretending to be a democracy would have caused a seismic upheaval. If revelations of this magnitude cause no more than the temporary discomfort which comes from reading unwelcome news, is it to be wondered if the disclosure that a former chief justice made a tidy profit by selling a residential plot which was allotted to him on specious grounds and for which he had petitioned a chief minister, should cause scarcely a ripple anywhere? If all the well-documented scandals involving shady business deals which have been reported in the Press over the last six to seven years were put together they would form a hefty anthology. But applaud the standards of public morality which have to come to prevail in the Islamic Republic because none of these scandals has resulted in a single prosecution. For all the well-founded charges against Irfanullah Marwat regarding his taste in PIA air hostesses, nothing has happened to him while the case against his CIA sidekick, Saleemullah Marwat, has been largely forgotten. In the Mehran Bank scandal poor Yunus Habib has had to cool his heels in jail while all those who were the objects of his largesse from General Beg to Aftab Sherpao go preaching their sermons to the country. Or consider the latest offering of this government which in the history books will no doubt be known as Benazirs Second Empire: the proposed sale of the majority shares of Pakistan Petroleum Limited (the company which owns the Sui gas field) and a stake in the money- making Qadirpur gas field to the hotelier Hashwani. President Farooq Leghari in no uncertain terms has objected to this sale as neither being transparent nor in the national interest. At the last ECC meeting this issue did not figure in the original agenda and was added to it only at the last minute. Such things do not happen in Pakistan just like that. The haste with which this matter has been dealt with strongly suggests that some powerful interests are behind this deal. Who are they and what do they stand to gain from it? Democratic purists, of whom there is no shortage in our half- baked democracy, regularly take a stand against the Eighth Amendment which empowers the President to keep an eye on the workings of government. This power of his may go against the principles of parliamentary sovereignty but it is entirely in keeping with the muck of our politics because the apostles of Pakistani democracy have given ample proof that, left to themselves and their devices, they can scarcely be trusted. Suppose the President had not intervened in the proposed PPL deal. In that case, just because somebodys private interest is at stake, a major strategic sale affecting the countrys long- term interests would have gone through without subjecting it to proper scrutiny. Yet the Petroleum Minister, Anwar Saifullah, who as a business tycoon should not have been placed in charge of a lucrative ministry in the first place, is protesting the innocence and high merit of this proposed deal even if his arguments convince no one. With such a presidential censure on his back, a minister in any other country pretending to be an accountable democracy would have been quickly in trouble if not promptly out of office. But not in Pakistan, where the tradition of not being answerable for corruption or wrongdoing has been solidly established as a leading principle of government. Ever since Benazirs First Empire in 1988 and through the Nawaz Sharif era till today, it has been the common refrain of politicians or other bigwigs charged with corruption that they are innocent because nothing has been proved against them. Nothing has become of the charges that were brought against Benazir Bhutto and Asif Zardari by President Ghulam Ishaq Khan. Knowing the way such things operate in Pakistan, it is reasonably certain that nothing will become of the miasma of charges brought against the two Sharifs. For one the framing of these charges is not honest because the spirit behind them is that of victimisation. But even otherwise, in this God-gifted Republic nothing ever is proved against anyone: from patwaris, thanedars and bankers to the subverters of constitutional authority. If established proof alone was the criterion to judge the existence or the absence of corruption then this must be the cleanest country in the world and its leaders the most honest of their fraternity. To think of the matter is to be convinced that there is something stirring in the attitude of our governing class. Nothing that may be brought against its members makes the slightest difference. The Press may rant and rave, the most incredible tales of money-making may form the staple of drawing-room conversation, but for all the effect that these things have on the countrys leadership they might never have been said at all. Hence the anomaly that whereas the Press is free its barb has lost its sting. Which should not be surprising because the word spoken or written in censure has meaning or effect only in a society where the rule of law in all its amplitude prevails. For all the comprehensiveness of Macaulays legal code which forms the basis of Pakistani and Indian jurisprudence, ours is still not a society which can lay claim to this distinction. There is no cause for despair, however, because this remains a sturdy and resilient land. If what has been done to it throughout its history were to be suffered by a professional woman of the streets during the course of a single calendar day, she would beg divine forgiveness and renounce her errant ways. But this country goes on while its people, heroic in their fortitude, have learnt to live with their destiny. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960121 ------------------------------------------------------------------- Green signal for KMTP ------------------------------------------------------------------- CONSIDERING the unusually long time it has taken for arrangements for the implementation of the Karachi mass transit system to be finalised, the news that work on the project will begin before the end of the year will be received with a measure of scepticism. Hopes of an early commencement of work on the project have been raised from time to time - only to be dampened by some unforeseen development at the last minute or a procedural hitch of one kind or another. However, the prospects this time look brighter than at any time in the past with the signing of a 590-million dollar agreement between a Canadian consortium and the National Mass Transit Authority (NMTA) in Islamabad the other day for the implementation of the long delayed project. The conclusion of this deal means that a formidable hurdle - the financing of the project's 60 percent cost from private sources - has been overcome at last. This then should be taken as the much-awaited green signal for work to begin on the KMTP in right earnest. Under the present plans, the balance of 40 percent of the project cost will be met by the government, in the form of land to be made available for the construction of the partly elevated railway serving some of the most congested parts of the city. The Canadian consortium will meet its commitment of funds by raising loans in an equity-debt ratio of 20:80, which the government determined as an inducement to foreign private investors in May last year, after the World Bank backed out of its pledge to put up funds to cover 30 to 40 per cent of the cost of the infrastructure facilities for the project. Ideally, the loans should be raised externally, as this will also take care of the foreign exchange component of the cost. However, it is hoped that all conceivable wrinkles have finally been ironed out and that there will be no further delay in the launching of the-project either for technical or bureaucratic reasons. It appears that the agreement signed with the Canadian consortium is confined to what was originally conceived as the 15-kilometre priority Corridor (Sohrab Goth to Merewether Tower) of an 87-kilometre partly elevated light rail system to serve as the pivotal part of a comprehensive and efficient transport network for Karachi. Even the route of Corridor was realigned some two years after it was firmed up, to meet some environmentalist objections and to avoid serious dislocation of business in M.A. Jinnah Road area which is perhaps the city's busiest trading district. The realigned route has now been split into two phases the first connecting Merewether Tower to Karimabad and the second linking Karimabad with Sohrab Goth. It is estimated that work on the project will be completed within 56 months but the time schedule for the completion of each phase has not been specifically indicated. However, it is hoped that there would be no significant timelag between the completion of the first phase and the commencement of work on the second phase. The fate of priority Corridor II (Orangi Town to Cantonment station) under the original plans for Karachi's mass transit project is still not known. One hopes that it has only been postponed and not abandoned altogether. The basic design for this second corridor was completed by a French firm of consultants in June 1994 and the environmental study and resettlement plans were then said to be in an advanced stage. The revamping of the Karachi Circular Railway (KCR), which has also been proposed from time to time, should also be taken in hand at the earliest, as it is absolutely indispensable to the immediate as well as long-term needs of the ever growing number of commuters in Karachi. With Pakistan poised to enter the 21st century, the provision of an adequate and efficient mass transit system for Karachi can only be viewed as a critical need of the entire country's industrial and commercial progress. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960125 ------------------------------------------------------------------- Mounting debt burden ------------------------------------------------------------------- Sultan Ahmed PAKISTANS external debt service payments have exceeded two billion dollars, making it a landmark in the history of our increasing external indebtedness. That happened in the last financial year, according to updated official figures, but that tells only a part of the story. It relates to only long and medium-term loans, and not the increasing short-term loans and the use of over seven billion dollars handed over to the State Bank of Pakistan by commercial banks in Pakistan as deposits made by resident and non-resident Pakistanis or brought in by foreign banks to enlarge their operations in Pakistan. As against such vast liabilities Pakistan has a small gross foreign exchange reserve of 1.5 billion dollars, and, that too, as a result of hasty external borrowing to boost the reserve after it had slipped to one billion dollars from 2.737 billion dollars on July 1 last in liquid form. The long and medium-term debt out of the total external aid of 53 billion dollars received so far was 21.6 billion on July 1, while 11 billion dollars were stuck up in the pipeline due to inefficiency in use of aid or for want of matching rupee funds. If the short-term debt, private sector borrowing from abroad, suppliers credit to industrial investors and the seven billion dollars from commercial banks used by the government are added up, the total foreign exchange liability of the country will be around 35 billion dollars, as against the 1.5 billion gross reserve, unlike the liquid reserve mentioned by the State Bank so far. Look at the diversity of short term loans reported in one day  December 27: Foreign banks combined to lend 200 million dollars for Pakistans petroleum imports. Bank of America lends 200 million dollars for import of wheat. Seven foreign Banks led by the Bank of America arrange for a syndicated loan of Rs 1.944 billion to WAPDA. And on the private sector side, following the loans given by the International Finance Corporation, an affiliate of the World Bank to few Modarabas, the Asian Development Bank has approved 60 million dollars of long-term loans to four major leasing companies. The IFC loans to the Modarabas remained in the pipe- line for long as Modarabas could not secure interest-bearing loans and so the same has been converted into investment which would mean the Modarabas paying far more to the IMF than for the low interest rate loans. If the debt servicing cost of the short-term loans is added to the cost of servicing of the long and medium-term loans, the total will be around three billion dollars. And that is a large figure for a country whose exports have not exceeded 8 million dollars, and the deficit in the balance of trade in the first half of the year ending December 31 was as large as two billion dollars. The home remittances appear to be falling after they rose to 1.866 billion dollars last year, despite the higher targets set. But all that is not discouraging the government from entering into large foreign exchange commitments. The proposed new Lahore air terminal, which may cost far more than 220 million dollars following the additions approved by the federal cabinet, is to be financed by a private sector builder, but his foreign exchange commitments will be guaranteed by the Pakistan government. Similar is the case in respect of many other foreign funded projects. Clearly this strategy has severe limitations. Debt servicing payments will exceed Rs 160 billion this year out of the estimated tax revenues of Rs 265 billion. And if the defence outlay of Rs 115 billion is added to that, they exceed the tax revenues. So the government has to borrow from at home and abroad, increase the heavy debt burden, and stunt the crucial social sector development for want of funds. Several remedies have been suggested to contain this situation and reduce the national debt and the heavy debt servicing cost. Among them is a ban on excess spending by the government each year and a ceiling on the debt it can incur each year. If the government has to break these limits it has to come before the Parliament and explain the reasons. And immediately, the privatisation funds have to be used for reducing the huge national debt, inclusive of the domestic debt of over Rs 800 billion and total foreign exchange debt of around 35 billion dollars. At this time the interest which President Farooq Leghari is taking in the privatisation of major public sector units is heartening. Earlier he had called for clean and transparent privatisation and urged the government to avoid the methodologies for which the PPP had attacked the Nawaz Sharif government. Major enterprises like the UBL, (26 per cent of the shares) Sui Southern gas Company, Kot Adu Power station and Habib Bank are billed for privatisation along with others in 1996. And President wants to be fully briefed on that. But it is not enough if he satisfies himself that the transactions are fair and transparent, and that the major units have been given to the right buyers who will develop and expand them as well. He has also to make sure the sales proceeds of the privatisation go to reduce the enormous national debt, internal and external. There is a clear and insistent national consensus on the use of sales proceeds of privatisation to reduce the national debt. But the government is pretty vague about it and does not come up with firm commitments. Nor has it used the sale proceeds of the PTC shares of Rs 30 billion for reducing the debt. And now the World Bank in its Annual Economic Review of Pakistans economy in 1994-95 says Rs 26.1 billion out of the total income of Rs 30 billion from privatisation has been used for financing the budgetary deficit and the Social Action Programme. It says Rs 6.1 billion was used for financing the deficit and Rs 3 billion was provided to WAPDA and only Rs 5 billion for SAP. The budget provides for Rs 12 billion from the privatisation funds for SAP this year. It is not often that the nation will be disposing of large projects like major banks and power and gas companies. It is, therefore, imperative that when the major assets of the nation are liquidated its major liabilities, too must be liquidated. If not, we will be mired in an ocean of debt too difficult to get out without serious damage to us. The government had proposed to set up a future Generation Fund out of sales proceeds of privatisation. But the fact is that if the sales proceeds are not used to reduce the large national debt we will be burdening the future generations with heavy debt and doing a major disservice to them. Must we do that when we have this rare golden opportunity to slash the heavy debt, reduce the vast official expenditure in the non-productive sector, reduce taxation and give a boost to the economy and make it go bouncing? President Leghari has a major role to play in this area. He should not hesitate or prevaricate when the national consensus is too clear, and care-taker Prime Minister Moeen Qureshi gave the lead by setting up a Debt Reduction Fund which remains empty for want of an earnest follow-up by his successors. If the national debt is slashed, and the government reduces its borrowing, the interest rates will come down and more funds will be available for trade and industry in this age when the private sector is expected to invest and develop industries and the infrastructure. Along with more bank loans becoming available the interest rates will also come down, and the rate of inflation which is officially 14 percent and far higher otherwise will fall. Then, savings and investment will rise, and larger savings and cheaper loans will promote industrial development. And that is what the country needs desperately now if the massive unemployment is not to aggravate the political and social tensions. Look at the kind of leaps many Asian countries are making in the industrial sphere. Production rise in Indonesia is 20.6 per cent, Philippines 18.4 per cent, Thailand 11.6 per cent and China 14 per cent. Compared to that our target this year is only 6.8 per cent, and with too many of our industries, including textiles, sugar, paper and jute manufacturers, in trouble, and about 4,000 industrial units sick, how much of industrial growth will be recorded this year aided by the far larger cotton crop remains to be seen. Can we achieve in Pakistan what India has been able to do in respect of inflation, interest rates and savings? Of course, the State Bank is applying the squeeze in respect of money supply and bank credit, but that alone is not enough to bring down inflation to a single digit as some of the officials are predicting. High production costs, exorbitant interest rates, and high taxes give a boost to inflation, while the increase in production is not significant, except in cotton. Our economic liberation has to begin by cutting down the huge national debt, with less official borrowing, cheaper credit and lower inflation, and the President has to take a lead in that direction now.

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SPORTS

960120 ------------------------------------------------------------------- PIA regain National one-day title after nine years ------------------------------------------------------------------- Ilyas Beg SHEIKHUPURA, Jan 19: Outplaying Rawalpindi A side in all departments of the game, PIA regained the title in the 15th Wills Cup Cricket Tournament at the Shafqat Naghmi Stadium. PIA defeated Rawalpindi A by seven wickets in the final, consuming only 30.5 overs. National Captain, Wasim Akram, leading the PIA team, won the toss and put Rawalpindi A side in to bat. The decision paid off because he read the pitch correctly. Leading the team from the front, Wasim Akram helped in restricting the Rawalpindi side to a paltry score of 124. Excepting Zubair Nadeem (36 with two fours) none of the Rawalpindi batsmen could cope with the pace and spin attack of PIA. Wasim Akram took four wickets for 21 runs and rightly won the Man-of- the-Final award. He was paid for his sustained bowling at good length and good direction. After the early fall of Shoaib Mohammad who ballooned a catch to Mohammad Riaz at mid-wicket, the PIA batsmen galloped to the victory target. Opener Ghulam Ali (51 with six boundaries) and Zahid Fazal (45 with three fours) added 73 precious runs in 76 minutes off 126 balls to take PIA very near to victory. Ghulam Ali stayed at the crease for 111 minutes, faced 82 balls and hit six well-timed boundaries in his fine knock of 51. Ghulam Ali mistimed a ball from Shakeel Ahmad and holed out a catch to Mohammad Akram at mid-off but after taking PIA quite close to victory. The second wicket fell at the total of 112. Zahid Fazal, having been dropped by Pervaiz Iqbal off Shakeel Ahmad, was finally out to a catch by Mohammad Akram at long-Off boundary off the first ball of Mohammad Riazs second spell. Zahid Fazal hit three fours in his stay of 85 minutes at the crease in which he played 71 balls. He hit a fluent knock of 45. The third PIA wicket fell at the total of 116. At that stage, PIA was at the hand-shaking distance from win. Sagheer Abbas (3) and Asif Mujtaba (6) took PIA to the victory-target without being separated. With the score tied at 124, umpire Mian Mohammad Aslam declared a bouncer from Naeem Akhtar as wide-ball and PIA reached the coveted total due to that extra run. PIA coasted home to a facile seven-wicket win. Led by Test all-rounder Wasim Akram and ably supported by young paceman Nadeem Afzal and Test off-spinner Saqlain Mushtaq, PIA bowling did not allow the Rawalpindi innings to prosper during the morning session of play. The PIA bowlers fully exploited the moisture in the rain-soaked pitch and bowled with sustained hostility to bundle out Rawalpindi for a dismal score of 124 in only 165 minutes, using only 42.5 overs out of the stipulated 45 overs. Wasim Akram not only accounted for the Test opener Aamir Sohail but also mopped up the tail by claiming the wickets of Naeem Akhtar (18), Pervaiz Iqbal (9) and Mohammad Akram (4) to finish with the best figures of four for 21 in 7.5 overs. Nadeem Afzal bowled unchanged from the pavilion end to complete his quota of nine overs. He was rewarded with two wickets for 24 runs. Saqlain Mushtaq, claimed the wickets of captain Naseer Ahmad (11) and Asif Mahmood (2), conceding 30 runs. The only batsman who showed some fighting ability was Zubair Nadeem. He was bowled by a leg-break off Asif Mujtaba, who knocked his off- stump with a ball of low trajectory. Zubair Nadeem stayed at the crease for 77 minutes, faced 62 balls and hit two boundaries in his top-score of 36. Aamir Sohail, survived 31 minutes, played 29 deliveries and hit only one boundary in his score of 12 before snicking a delivery of Wasim Akram into the safe hands of wicketkeeper Moin Khan. The second Rawalpindi wicket fell at the total of 21. Earlier, opener Naveed Qureshi had offered a catch to Wasim Akram at the total 13 off the delivery of Nadeem Afzal to give the youngster his first wicket. In the 16th over, Arif Butt (9) missed the line of delivery from Nadeem Afzal and was declared leg before. Thereafter Saqlain Mushtaq destabilised the middle-order while Wasim Akram accounted for the tail-enders. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960121 ------------------------------------------------------------------- Australia clinch World Series in rain-hit thriller ------------------------------------------------------------------- Ihithisham Kamardeen SYDNEY, Jan. 20: Australia clinched the World Series one-day cricket finals 2-0 in dramatic circumstances tonight after Sri Lanka failed by eight runs in a rain-shortened frantic chase at the SCG. Australias 273 for five from 50 overs looked impenetrable but a thunderstorm during the dinner break left the visitors chasing a revised target of 168 from 25 overs at 6.72 per over. They had the luxury of only two men outside the fielding circle for 15 overs and made a flying start but lost wickets regularly to poor shots. At 135 for five, Sri Lanka needed 33 off five overs but legspinner Shane Warne returned to get captain Arjuna Ranatunga for 41 and Kumara Dharmasena for seven and Mark Waugh ran out Hashan Tillakaratne for 25 to make it 146 for eight. With 22 needed off 11 balls and 17 off the last over, Sri Lanka ended on 159 for eight. Warne finished with 3-20 from his five overs to claim a Joint Player of the Finals Award after his 2-29 from 10 overs proved the turning point in Australias 18-run win in Melbourne. Captains Mark Taylor shared the award with Warne. Opener Sanath Jayasuriya hammered 30 from 26 balls but lofted a long hop from Warne straight to Glenn McGrath at deep midwicket. McGrath had earlier been reported to Taylor by umpire Steve Randell for blocking Jayasuriyas path on a single after the batsman took 13 from his third over. The lanky paceman gave Australia the ideal start by trapping dasher Romesh Kaluwitharana, the Player of the Series from the preliminary rounds, lbw for a first ball duck. Offspinner Mark Waugh then had Aravinda de Silva caught by Paul Reiffel at mid-off for six after the seamer dropped a tough chance when Jayasuriya was eight. The slippery ball made life tough for the Australians and one throw went through three fieldsmen for overthrows. But Warne held a good catch to dismiss Asanka Gurusinha for 24 and Taylor did likewise to Ruwan Kalpage (9) to make it 87 for five in the 13th over. Earlier, a majestic 73 off 82 balls by Mark Waugh and an equally punishing 82 off 96 balls by Taylor set up Australias formidable 5- 273 - the fourth highest limited: overs total at the SCG. They put on 135 in 25 overs for the first wicket after being sent in. They took full toll of a lightning fast outfield, a loose line from the Sri Lankan bowlers and some sloppy fielding to notch the highest score of the series. Taylor and Waugh gleaned 34 from the first ten overs then hammered 71 from the next ten to register their second century stand of the competition in 87 minutes. Waugh was spectacularly caught and bowled by offspinner Kalpage for 73 to take his tournament tally to 357 runs at 35.70 and put more pressure on Test opener Michael Slater. Taylor is still seeking his maiden one-day century, having also made 90 and 85 against Sri Lanka this season in chalking up 423 runs at 42.30. The middle order lost its way as Kalpage (2-47) and fellow off Dharmasena (2-45) applied the brakes and brought the run rate back below five per over. From a healthy 1-170 in the 32nd over Australia lost 4-40 to be 210 for five in the 43rd. Left-hander Michael Bevan and wicketkeeper Ian Healy, the batting heroes of Australias win in the first final, then smacked 63 runs in 34 minutes from 47 balls. Bevan finished with 32 not out to take his series total to 389 at the phenomenal average of 194.50 while Healy chapped in with an unbeaten 40 from 28 balls to follow his 50 not out at the MCG. Leftarm paceman Chaminda Vaas was again the pick of the bowlers with 1-47 after opening spells of 0-12 from four and 0-20 from six. Grusinha missed with a throw that would have run Taylor out on nought and made it 1-9, while Ranatunga dropped Healy on 13 at 238 for five. The two sides havent seen the last of each other  the third Test starts in Adelaide and they meet again in their opening World Cup match in Colombo on Feb. 14. Scoreboard Australia M.Taylor c Kaluwitharana b Kalpage 82 M.Waugh c and b Kalpage 73 R.Ponting c Vaas b Dharmasena 17 S.Waugh c Kalpage b Dharmasena 2 S.Law b Vaas 21 M.Bevan not out 32 I.Healy not out 40 Extras (lb-5 w-1) 6 Total (5 wickets, 50 overs) 273 Fall of wickets: 1-135, 2-170, 3-176, 4-184, 5-210. Did not bat: P.Reiffel, S.Warne, C.McDermott, G.McGrath. Bowling: Vaas 10-1-47-1, Pushpakumara 8-1-39-0 (w-1), Munasinghe 4-0- 33-0, Dharmasena 10-0-45-2, Jayasuriya 8-0-57-0, Kalpage 10-0-47-2. Sri Lanka S.Jayasuriya c McGrath b Warne 30 R.Kaluwitharana lbw b McGrath 0 A.de Silva c Reiffel b M.Waugh 6 A.Gurusinha c Warne b Reiffel 24 A.Ranatunga c Law b Warne 41 R.Kalpage c Taylor b McDermott 9 H. Tillekeratne run out 25 K. Dharmasena c S. Waugh b Warne 7 C. Vaas not out 8 M. Munasinghe not out 3 EXTRAS (lb-3 w-3) 6 TOTAL (8 wkts 25 overs) 159 FALL OF WICKETS: 1-1 2-22 3-49 4-66 5-87 6-135 7-146 8-146 DID NOT BAT: R. Pushpakumara BOWLING: McDermott 5-0-33-1 (w-1), Warne 5-1-20-3 (w-1), 4-0-22-1 (w- 1), M. Waugh 5-0-31-1 (w-1), Warne 5-1-20-3 (w-1), S. Waugh 1-0-14-0. Result: Australia won by eight runs. Note: Sri Lanka set revised victory target of 168 from 25 overs after rain. Australia win best-of-three finals 2-0. 60

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