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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 25 July 1996 Issue : 02/30 -------------------------------------------------------------------

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

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

CONTENTS

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NATIONAL

Afaq launches campaign for province Four killed in Lahore airport bomb blast Blast probe on, no clue in sight so far 10 injured in Sargodha explosion Pakistan needs some time to respond to Indian talks offer: FO Shift in Pakistan stand on CTBT 137 held on way to training in Afghanistan OPF to launch pension plan for expats Corruption eating up SAP, say critics ---------------------------------

BUSINESS & ECONOMY

Rupee drops to record low against dollar Petroleum products prices reduced The colours of corruption How about export-led growth! Disaster looming large over textile industry Stocks fall across a broad front ---------------------------------------

EDITORIALS & FEATURES

A monarchy, Madam, a monarchy Ardeshir Cowasjee Forget about debt, retire the minister Mohammad Malick Our image abroad Dr Maqbool Bhatty The army as constitutional stabiliser Ayaz Amir Making public places safer by barring the public Mohammad Malick -----------

SPORTS

Pakistan in true form for first Test at Lords US media call Games a 'colossal mess' Shahbaz leads Pakistan to win over US Witnesses say Picking seam of ball a common practice Imran's counsel begins his arguments in libel case

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NATIONAL NEWS

960720 ------------------------------------------------------------------- Afaq launches campaign for province ------------------------------------------------------------------- Our Reporter KARACHI, July 19: The MQM Haqiqi formally launched its campaign for a southern Sindh province at the Nishtar Park rally and decided to initiate a signature campaign from Aug 1 to muster public support for the demand. Afaq Ahmed , chairman of the party, declared that his party would announce its future strategy on Aug 14. Our struggle is constitutional, within the geographical boundaries of Pakistan and not directed against any community, he said. The Haqiqi chief surprised the audience when he said the demand for a southern Sindh province was aimed at completing the unfinished agenda of the founder of Pakistan Peoples Party, the late Zulfikar Ali Bhutto. Zulfikar Ali Bhutto had said there were five units of Pakistan and we want to complete the unfinished agenda of Zulfikar Ali Bhutto. He said the late Zulfikar Ali Bhutto had in 1973 Constitution declared that there were five linguistic entities in Pakistan in which Punjab, NWFP, Balochistan, rural Sindh and urban Sindh were included. Except for urban Sindh all the four entities got the assemblies and we now want to complete the unfinished his agenda by giving an assembly to urban Sindh as well, said Mr Ahmed. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960723 ------------------------------------------------------------------- Four killed in Lahore airport bomb blast ------------------------------------------------------------------- Staff Reporter LAHORE, July 22: At least four people were killed and around 58 injured, three of them seriously, in a powerful bomb explosion in the lobby of the Lahore airport. The bomb, believed to have been foreign-made and placed in a brief case near a kiosk in the area outside the departure lounge, went off at 12.33pm. A PIA flight had just closed, and no other flight was scheduled for another couple of hours, otherwise the concourse would have been more crowded with passengers and relatives and the toll would have been higher. This is the first such incident at the citys airport, which has recently become busier with a number of international flights. Two of those killed were blown to bits by the explosion, and pieces of flesh and torn clothing were seen even outside the building. One body was found intact. There was blood all over the place and spattered on the walls. The bomb damaged a large area in the centre of the lobby. Punjab chief minister Arif Nakai accused the airport security force of lack of vigilance. He said initial reports showed that the metal device weighed two kg and was foreign-made. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960725 ------------------------------------------------------------------- Blast probe on, no clue in sight so far ------------------------------------------------------------------- Staff Reporter LAHORE, July 24: Various agencies associated with the Lahore Airport blast continued their investigation, but so far failed to find any clue. Jessi Escot, an expert of the US Federal Bureau of Investigation based in the American embassy in Islamabad had also arrived in Lahore. US expert has collected some samples for examination from the sites and would shortly send a report to Lahore police about his findings after the examination of samples, Cantt SP Maj Mubasharullah told Dawn. An ASF official confirmed that no agency had so far been able to find any piece of explosive device. He said the bomb disposal experts made their estimates about the type and intensity of the device on the basis of the damage done and the eye-witness accounts of the injured. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960723 ------------------------------------------------------------------- 10 injured in Sargodha explosion ------------------------------------------------------------------- Correspondent SARGODHA, July 22: Ten people were injured when an explosive device went off in the citys busiest trading area. The bomb exploded near the Block 2 mosque at about 5:50pm. Probably a one kilogram home-made high explosive device, it left a two-foot deep crater. The bang was heard as far as two kilometres from the bombing site. Eyewitnesses told Dawn that the blast hurled a stunned boy sitting on the wooden board of a wayside vendor high into the air. Passers-by and some other vendors were also injured. Splinters of the vendors board and debris were seen flying higher than the adjacent mosque. Glass panes of cupboards in the adjoining shops were also broken. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960720 ------------------------------------------------------------------- Pakistan needs some time to respond to Indian talks offer: FO ------------------------------------------------------------------- Hasan Akhtar ISLAMABAD July 19: A Foreign Office spokesman said it would take some time to respond to the Indian suggestion to revive dialogue between the two countries. Responding to a question, the spokesman said it was a major decision and would take some time for Islamabad to respond. He also said that the Foreign Ministry had not yet received any Indian suggestion for liberalisation of visas between the two countries. The issue of reopening consulates in Karachi and Bombay had been under study ever since they were closed, he added. The spokesman debunked the Indian claim that the elections to a local assembly in the occupied Kashmir signified return of normality in the disputed territory. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960723 ------------------------------------------------------------------- Shift in Pakistan stand on CTBT ------------------------------------------------------------------- Staff Reporter LAHORE, July 22: The Pakistan Muslim League said on Monday Pakistans stand on a Comprehensive Test Ban Treaty had undergone a change from the long- standing position that Pakistan would not sign the CTBT unless India also did so. The partys information secretary Syed Mushahid Husain recalled at a news conference on July 18, a Foreign Office spokesman had told the Press that the Pakistan would decide about signing the CTBT at an appropriate time, taking into account its security concerns, the final text of the treaty and the position taken by the nuclear weapon and nuclear capable states. Again, he pointed out, there was no mention of the previous position that Pakistan would not sign unless India also did so. The PML leader said the change in Pakistans stand on CTBT, first indicated on July 11, 1996, was reiterated by the foreign minister in a statement, on July 22. This change in Pakistans position has suddenly come about following the letter written by President Clinton to Prime Minister Benazir Bhutto urging Pakistans signature on the CTBT. However, no reason has been given for this change in Pakistans position. Syed Mushahid Husain said Pakistan had changed its position unilaterally on signing the CTBT at a time when India hardened its position on this issue, although Pakistan was facing far more serious security concerns. Any unilateral accession to CTBT without India agreeing to do so will mean that Pakistan has bartered away its nuclear option just because a weak and spineless leadership is at the helm of affairs, which cannot even protect the vital national interests. This would be the third major compromise on Pakistans security in less than a decade without any quid pro quo: Pakistan unilaterally capped the nuclear programme in 1989, provided relief to India on East Punjab and now the U-turn on CTBT. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960724 ------------------------------------------------------------------- 137 held on way to training in Afghanistan ------------------------------------------------------------------- Bureau Report ISLAMABAD, July 23: The law enforcement agencies have arrested 137 people who were being sent by religious parties and the MQM to Afghanistan for training in use of arms, the interior minister, Naseerullah Babar, claimed. He alleged that these people had been rounded up during the last two or three days. He did not disclose where they were arrested. Gen Babar said nine of these people were sent for training by Al-Karam  one of the main offices of the Mohajir Qaumi Movement in Karachi. Among the others, there were some non-Muslims as well. Who would have been responsible for the behaviour of these non-Muslims when they returned? he asked while dilating on recent bomb blasts. He did not name any particular religious party but said majority of them belonged to Punjab. "What culture we are going to develop if religious parties start involving themselves in subversive activities?" he asked. "We will not hesitate to arrest any one going to Afghanistan for training," the minister declared. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960720 ------------------------------------------------------------------- OPF to launch pension plan for expats ------------------------------------------------------------------- Bureau Report ISLAMABAD, July 19: Overseas Workers Foundation (OPF) is launching a pension scheme on August 6 for overseas Pakistanis, by offering them adequate funds in case of death and disability. According to the OPF Managing Director Mr Asif Nawaz, this will be a joint venture of the OPF and the State Life Insurance Company. He told Dawn said that the pension scheme for overseas Pakistan was a well thought out scheme in which anybody could participate by contributing a minimum Rs 500. The OPF Managing Director said the OPF would be responsible for paying the pension amount, the State Life Insurance Company would cover death and disability factor. This scheme has been approved and widely appreciated by the International Labour Organisation (ILO), Asif Nawaz said. The ILO has termed it as a best pension scheme ever offered in any manpower-exporting country, he said adding that four international companies have been given the contract for managing the pension funds. He pointed out the amount could be contributed in Pakistani rupees or US dollars by overseas Pakistanis. We have hired the services of four multi-national companies to mange the scheme in both the currencies, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960725 ------------------------------------------------------------------- Corruption eating up SAP, say critics ------------------------------------------------------------------- Shaukat Ali LAHORE, July 24: Speakers at a seminar here stunned the audience by pointing out that multi billion rupee Social Action Programme being carried out since 1993 was a complete failure. They said SAP funds were being grossly misappropriated, civil works of different schemes were extremely poor and government departments engaged in the programme were least interested in producing results. They observed that the building department showed no enthusiasm in handing over school buildings, built with SAP funds, to the Education Department which was also not keen in taking over their charge. The said: PC-4 is not made to complete the last formality before making the school to operate. Similar is the fate of health facilities being built under SAP. If all these bottlenecks are somehow removed, the Finance Department does not release recurring funds. Sanction for new expenditures is not issued. In most cases where all these formalities have been completed there is no staff to run the projects. So for over Rs 100 billion have been spent on SAP, 25 per cent of which is foreign-funded, during last three years. National Press has been publishing stories about the poor performance of the programme which aims at improving quality of life at the most backward areas. Provincial governments, Punjab in particular where Rs 57.5 billion have been spent so far, however, have been claiming a high degree of success. ******************************************************************* DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************* INTERNET PROFESSIONALS WANTED * MS in computer science, with two years experience, or, BE with four years experience in the installation and management of an ISP. * Must be able to select equipment, configure, and troubleshoot TCP/IP networks independently. 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BUSINESS & ECONOMY

960725 ------------------------------------------------------------------- Rupee drops to record low against dollar ------------------------------------------------------------------- Staff Reporter KARACHI, July 24: The rupee on Wednesday was traded at a record low of Rs 38.32 on the open market, after the central bank officially lowered its parity by another seven paisa against the US dollar at Rs 35.32 and 35.49 for spot buying and selling, respectively. The dollar is in a terrible short supply as each investor is making frantic efforts to make these bills a safe haven in the current political uncertainty, said a leading currency dealer adding, big stocks are exhausted within no time. Stock brokers are selling blue chips to buy the dollar on predictions that shares could fall to any lows, but dollar is heading towards its next chart point of Rs 40, another said. There is virtual panic buying of the US dollar as it has now assumed the role of a safe investment and there are fears in some quarters that the current tendency to have dollar could deal a serious blow to the economy as a whole, dealers said. The first victim of craze for the US currency is the stock market, while other financial markets might follow the suit in due course, analysts fear. In kerb trading, it was quoted at Rs 38.28 and 38.32, thus surpassing its pre-budget low level of Rs 38.23 and 38.29, respectively. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960723 ------------------------------------------------------------------- Petroleum products prices reduced ------------------------------------------------------------------- Our Correspondent ISLAMABAD, July 22: The government announced on Sunday that prices of petroleum products had been reduced. According to a press release issued by the Ministry of Petroleum and Natural Resources, the revised price of motor gasoline (regular) is Rs 14.54 as compared to existing price of Rs 14.69. According to the revised prices, Super/Premier plus will now be sold at Rs 15.956 in place of previous price of Rs 16.046. Kerosene will now be selling at Rs 6.91 in place of existing Rs 7.26. Similarly , high- speed diesel which was available at the price of Rs 7.46 per litre, will now be available at Rs 7.11. Revised price of light diesel oil will now be Rs 5.35 as compared to existing price of Rs 5.73. Jp -1 whose existing price is Rs 5.81 will now be priced at Rs 5.33. Jp 4 which is selling at Rs 7.94 will now be available at Rs 7.55. Furnace oil Rs/M.Ton) Rs 4514.71 will now be selling at Rs 4234.71. A spokesman for the ministry stated that the reduction in the prices of petroleum products had been made in accordance with fluctuation in the prices in the international market. The government, the spokesman said, had stood by its promise that benefit of decrease in prices in the international market would be passed on to consumers. He further said that prices of petroleum products were also reduced on June 13, 1996. The ministry has directed oil marketing companies and the local administration to ensure that dealers made the products available and sell the same on reduced rates. Those found violating the directive would be punished, the ministry spokesman warned. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960720 ------------------------------------------------------------------- The colours of corruption ------------------------------------------------------------------- Sabihuddin Ghausi ALL the three major banks are finding it increasingly difficult to recover Rs 14.45 billion they advanced from October 1991 to August 1993 to individual borrowers under the yellow cab scheme. Their effort to impound the defaulters vehicles has further added to the confusion. In the case of Habib Bank, which advanced the highest amount of Rs 7.9 billion for the purchase of 27,649 vehicles, a Vigilance Cell was set up in June 1995 to expedite the recovery process. The cell was wound up in June this year after it had reportedly spent about Rs 30 million, recovered hardly Rs 150 million and failed to maintain any proper record of the cars and vehicles impounded and their subsequent release. The HBL had earlier received countless complaints from the borrowers who were ready to clear their dues but were unable to trace their impounded vehicles. They had also made representations to President Farooq Leghari, the Prime Ministers Secretariat and many others who matter in running the affairs of the State. One of these impounded vehicle was gifted a charitable trust in Karachi and was being used as an ambulance, a senior banker disclosed who said the owner of the vehicle saw the ambulance, identified it and complained to the top authorities. It is now in the process of being returned to the owner, he added. Investigations being made into the working of the disbanded Vigilance Cell has brought forth startling revelations. Bankers fear that a large number of such vehicles might have been sold to persons other than the owners. The buyers might have taken them away to Afghanistan or Iran or even to Central Asia. Figures available for the impounded cars are based on a statement given by the Chairman of the Cell at a Press briefing on March 26. He informed the newsmen that 1,171 cars and heavy vehicles had been impounded. But according to the bankers, the Cell operated through nine regional offices and about 80 zonal offices in all parts of the country and must have confiscated about 4,000 vehicles. So far these bankers have been informed about the presence of some 600 vehicles in warehouses in Peshawar, Faisalabad, Multan, Karachi, Quetta and Hyderabad. Reports are still awaited from Islamabad and some other places. Of these 4,000 vehicles, about 2,200 are believed to have been handed over to authorised or unauthorised people. But according to a conservative estimate, about 1,800 vehicles are missing. Some other sources claim that the number of missing vehicles could be 5,000 or more. It means loss of over Rs 2 billion to the bank in addition to the claim petitions to be filed by the genuine borrowers in future, a senior banker said. Bankers say that the FIA has taken up cases in the dozens on complaints of the individuals while over a dozen cases have been filed in courts which could place the HBL under tremendous pressure. Soon after taking over the government, the PPP leaders including Mr Salman Taseer had come out with a detailed charge-sheet related to bungling in the yellow cab scheme. Calling it a mad, fraudulent scheme, Mr Taseer had alleged that the owners of 24,640 out of 56,642 vehicles delivered under the scheme were either untraceable or were defaulters. As many as 6,235 borrowers of HBL were untraceable and 7,336 were found defaulting on payment of their loans. In United Bank 283 vehicles were reported to have gone to fictitious persons and 7,281 were defaulting on payment out of a total of 21,149 borrowers. But it was also alleged that out of more than 10,000 borrowers in three Karachi branches of the UBL, about 4,000 were fictitious. In National Bank of Pakistan, 527 borrowers were not traceable and about 3,000 out of a total of 9,185 were defaulting on payment. The sponsors of the yellow cab scheme had projected that the owners of the cars would clear their dues by 1998 while those who borrowed for coaches, buses and heavy trucks would adjust their loans by 1999. It now seems that the banks will not get back their loans even in the next century, is the comment of a senior banker. While the PPP leaders blamed the previous government for the yellow cab scheme funded by the government banks, they themselves demanded Rs 1.8 billion from these banks to finance a two-wheeler scheme  bicycles and motorcycles  for federal government employees. The proposal was made in May 1994 but could not be implemented. However, they persuaded the banks to finance green tractors scheme and are now trying to engage them in the afforestation programme. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960720 ------------------------------------------------------------------- How about export-led growth! ------------------------------------------------------------------- By M.B. Naqvi ISLAMABADS economy managers have been talking of making Pakistan an Asian tiger through rapid development and by exports, for which purpose they have perfected a large number of incentives and the whole economy was supposed to respond to the supply side incentives and measures to boost exports. That began some 20 years ago really. In fact the talk has gone on even longer. But since the adjustment programmes of the IMF during the period of Mr Ghulam Ishaq Khan, the idea of export-led growth has held ground and it has been implicitly assumed that the IMF recommended policy package is compatible with this idea, even if it is not directly predicated on it. The time has come to reassess the progress made. Only the other day Senator Sartaj Aziz, an eminent opposition politician, cut the 1996-97 budget into pieces with trenchant criticism. In his criticism he repeatedly returned to the idea of export growth having been dismal and indeed a failure. Newspaper readers are aware that in terms of the number of Pakistani rupees earned through exports, various percentages of its growth were propagated by the governments publicists. The fact is that Pakistan has never been able to hit the target of exports set by the Commerce Ministry for several years running now at some $ 9 billion and some time even $ 10 billion. The dollar earnings of exports for the last four years have stayed stuck at around $ 8 billion plus or minus a few hundred million. Why has this performance been so lacklustre, if not downright worrying? What the opposition politicians say should be left alone because of their political motivation. But what is obviously true is that the exports have not grown by the desired rate simply because of one main manifestation of our economy managers failures: it is the high rates of inflation that have made Pakistani exports non-competitive. Steady erosion The high inflation rates have meant a steady depreciation of the Rupee in an effort to keep exports competitive. Since this was the only instrument available to them and was indiscriminately used by Islamabads economy managers, the purpose has never been achieved. Why? because input costs of the industries that produce the surplus for export produced goods at prices that made the exports too expensive for their importers abroad. Here it must be remembered that Pakistani exports are mainly simple processed goods when they are not merely primary products. The value-added items are few and far between; the reliance for a majority of the exports is on simply processed goods like cotton yarn or primary value-added goods of leather when raw hides and skins are not exported directly. What the government has sought to gain by devaluing the Rupee was ipso facto counteracted by the adverse effects of higher import prices - a necessary consequence of devaluation - which would increase the domestic prices of all Pakistani produced goods. The exporters were penalised by Pakistans economy managers own strategy. The second major reason why exports have not risen at a rate that would solve some of Pakistans problems is that Pakistani industries, and agriculture also, are not producing enough of a surplus. The fact of the matter is that the economy has been stagnating since August/September 1992 or shall we say 1993 as Mr. Sartaz Aziz has claimed. Whatever may be the precise cause, and the government is not quite free of blame on this score either, the fact is that the growth rate of the economy (GDP) has not registered a respectable rise. Scepticism galore Sometimes good GDP rises are recorded, as in the case of the year just concluded, but on these occasions a lot of scepticism by not only politicians in the opposition but also independent economists and commentators is to be seen. A lot of growth in the services sector and the money spinning activities of non-commodity producing sectors often cause a high GDP growth rate that is in fact unreal. Why? because if the GDP growth rates are not based on the production of goods and marketable services the GDP rate might mean very little. What that means is that even though it is known that the inflation rate has been taken into account for arriving at the GDP growth rate, the fact of the matter is that if the material goods and service of a marketable kind have not been produced at a respectably high rate that the GDP growth rate would itself encourage inflation. Thanks to macro-economic management of the economy being less than satisfactory, nothing could be done about our industrial growth rate because production in the large-scale sector has been stagnating and the government has not been able to do anything about it. All it could do was to concentrate on the balance of payments deficits and use the instrument of devaluation. The Rupee has been devalued last year by over 10 per cent and in recent years the rate of Rupee depreciation has been more than 10 per cent. But there are limits to the benefits that accrue from devaluation. These have now been demonstrated by stagnating exports. Even the stagnating export incomes hide the fact that some of the export incomes even in dollars represent inflation in prices. The real export performance may be even negative during the last three or four years. This is an alarming situation and underlines the failure of Islamabads official wizards, not to mention the accumulating reasons for treating IMF policy package with greater scepticism The fact of the matter is that devaluations have in fact boomeranged in the shape of cost-push inflation. The stagnation of exports underline this effect. It is now possible to pronounce that whether it is the Structural Adjustment Programmes or the export-led growth strategy, nothing seems to have worked largely because either the masters of Islamabad have been unable to implement the favoured ideas either in full or these ideas are inadequate. IMFs defenders The defenders of the IMF have a case. The IMF has never compelled Islamabad to bring down the budget deficit by relying only on one strategy, viz of increasing indirect taxes and revenues from government-supplied goods and services by increasing their prices. The purpose could have been well served if Pakistan could have reduced her non-productive expenditures. Here it is necessary to make a fine distinction between which particular current expenditure needs to be cut and which needs to be protected. The fact of the matter is that the overall size of the current budget needs to be brought down at the same time as the revenues base is widened and more revenues are mobilised. That is what the IMF advice is. It the government in Islamabad cannot possibly reduce the current expenditures it is not IMFs fault that the heaping up of the new taxes becomes counter-productive through both the smaller mobilisation of revenue and by the contraction of tax-producing activities of the economy. Pakistans economy has been trapped in this situation. The government has increased the inflation rate simply because it could not cut expenditures. Which is why the strategy is not producing the desired results. The budget deficit is not really coming down in the way it is expected to by our government or by the IMF monitors. While the economy managers failures are patent, it is necessary first to enumerate the failures and then to pick and choose as to which is more important or basic. The failures include: (a) Islamabad is having great difficulty in reducing the budget deficit the way the IMF has desired. It failed to do so in the 1995-96 budget and it is now again failing in the case of the revised budget for the same year and the more realistic expectations from the budget of 1996-97 are the same. (b) It has been unable to reduce non-productive current expenditures to any desired level. The reasons are many and some have become structural. High defence expenditures in the past have meant large accumulations of domestic debts the servicing of which by now has become the number one item of the current budget, forcing defence expenditure into the number two slot. It is now possible to say that Islamabad does not know how to reduce these two items while its control over others is not too tight. (c) Although Islamabad has been raising new taxes over the years and increasing administered prices of goods and services provided by the government, its expectations of raising pre-determined revenues are proving unrealistic. Expected yields from revenues enhancing measures has consistently fallen below expectations. In other words diminishing returns have set in. Moreover higher taxes have now had another deleterious effect, viz it is stoking the fires of inflation. (d) Pakistans comparative advantage in exports was low labour costs and low costs of production in industry. That advantage has largely been frittered away. And here a large measure of blame may have to be shifted on to the IMF policy package. Although it was not IMFs worry to maintain Pakistans comparative advantage. But it was Pakistan governments duty whether stated or left implied to maintain the comparative advantage of Pakistani exports. Consumption culture (e) Pakistani society and government are afflicted with a consumption culture. There have been years in the recent past when overall national consumption is far too high and that is both in public and private sectors. Which translates into what one has discussed so far: why exports have not risen or the likelihood is they will not rise unless economic management improves. It is necessary to lay down a few indicators or markers as to when exports growth will begin to rise. The first is of course macro-economic stability with a low inflation rate. Needless to say, there can be no stability if inflation is high. Without macro economic stability, the idea of making exports grow steadily is unsound. Secondly the GDP rate needs to be pushed up to above six per cent, provided the GDP quality is right. In other words the GDP rate is based on real increase in production of consumable and exportable goods and services. The economy should produce an export surplus after meeting the normal requirements of domestic consumers That is an important pre-condition for export growth. The government has to think harder in order to produce a set of incentives for exports. Too many incentives of the wrong kind can lead to a spurt in exports for one or two years and then as soon as the circumstances change or the incentives have to be reduced or withdrawn, the exports will slump again and will not rise at any desired rate. The fourth is in fact the opposite of what was said a while ago. The government has to find suitable disincentives for imports. This is a tricky field. The government does not have many instruments for discriminating against excessive imports; it is required to maintain a free import regime. it is also required to reduce the tariffs. Or at any rate not increase them. How then to increase disincentives for imports? That is the challenge. So far the import prices have risen mainly through devaluation, without actually discouraging imports for a variety of reasons. Can it stop this source of cost-push inflation in the economy? One particular field that has been left altogether out of discussion: it is the need to increase invisible exports or the exports of services. We need to do that in order to reduce the invisible imports that are such a drain on our current account deficit - which incidentally has risen to an unprecedented high level of about $ 4 billion. This is an unsustainable level and something drastic has to be done. The question is can Pakistans economy managers achieve all this. The short answer is no, so long as they do not reduce the budget deficit by reducing the debt-servicing as well as defence servicing. These two things have now become an economic imperative without which the economy might go to the dogs in a few more years. We have to reorient the economy to conditions where foreign aid will vanish and we will have to fend for ourselves. The key to this lies in reducing non-productive and wasteful expenditures. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960725 ------------------------------------------------------------------- Disaster looming large over textile industry ------------------------------------------------------------------- Shamsul Islam Naz FAISALABAD, July 24: The looms that mushroomed here during the first three decades after partition, are owned and financed by common people including weavers, traders, serving and retired government and private sector employees and even housewives, who invested their savings into this lucrative business and are, wholly or partially, dependent on this now not- so-lucrative business. To feed this exceptionally large number of powerlooms and textile mark-ups, thousands of preparatory, ancillary and auxiliary units have sprung up which are interdependent upon each other. Among these are over 110 sizing factories, 217 calendaring, bleaching, dyeing, printing and processing units, 161 foundries which are manufacturing the machines and spareparts. Hosiery units, which though not directly dependent upon powerlooms are nevertheless part and parcel of the gigantic textile complex, besides of course, 150 factories making garments. Then there are thousands of wholesale and retail dealers who sell raw material and the end-product of these looms  i.e. cotton and artsilk yarn, cloth and garments in the domestic and international export markets. The number of commercial exporters of fabrics whose annual sale exceeds over $500 million is 200 while the Faisalabad yarn market is regarded as the largest in Asia, and one of the largest in the world. All told, the number of investors and employees engaged in the textile industry and trade is well over 600,000. So every fourth citizen here is directly or indirectly involved in the textile industry. The wage earners included in this number come form adjoining villages every day and go back at the end of their shifts. It goes without saying, therefore, that when the textile industry into the city is adversely affected, the entire civic life of the city and a part of rural life in adjoining villages, comes to a virtual standstill. Such an eventually has already arisen due to the imposition of the GST (general sales tax) at the rate of 18 per cent. Normal business is in crises. Even the local restaurant, snack bars and teashops are desolate. Even some marriages have been postponed here. The local four-star hotel and other more modest establishments become the venue of protest seminars. A convention on national level was held here the other day in the Serena Hotel. It was jointly sponsored by the All Pakistan agricultural machinery and implements manufacturers association (PAMIMA) and Faisalabad foundry owners trade group (FF&TG). Their contention was that the imposition of the GST on agricultural machinery and implements would hit the production of food and cash crops. Representatives of the ailing textile sector  powerlooms, hosiery and sizing units  were present at the convention plus, of course, the representatives of Anjuman-i-Tajiran. The words of the spokesmen of the sizing units can still be seen on the walls of the venue of the convention: Hosiery and sizing units are on an indefinite strike while the powerlooms units are also gradually closing down. Because of the closure of the powerlooms, at least 300,000 people directly employed, 500,000 indirectly connected and 200,000 daily wage earners have became jobless. The unemployment of such a huge number of people has hit the social and economic life of the city badly. There could have been some relief had the deadlock remained restricted to the powerloom industry. But the crisis has been aggravated because of the strike by the shoemakers oilsees processing, sizing, foundry units, paper cone manufacturing, furniture, hosiery and plastic manufacturing units. A local economist thinks that if the powerlooms remain closed, for just as much as one month, the largest yarn market of Asia shall be constrained to keep its shutters down and the national export performance will be adversely affected and its impact will felt by the whole city and district. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960725 ------------------------------------------------------------------- Stocks fall across a broad front ------------------------------------------------------------------- Staff Reporter KARACHI, July 24: Stocks fell across a broad front on near-panic selling spurred by news that Opposition will launch anti-government drive to unseat it. The Wednesdays Islamabad meeting of a dozen political parties to agree on a one-point agenda of unseating the government triggered sellstops all- round, dealers said. Investors are seeking huge quantities of dollar after selling shares of some of the blue chips, still holding a fair profit margin, they added. The investment in the US dollar might not ensure a fair return in a shortest possible time but the money is certainly safe at least at its face value, they added. The KSE 100-share index, therefore, suffered a fresh big setback of 29.12 points at 1,524.90 as compared to 1,554.02 a day earlier, reflecting the weakness of the base shares. Investors have no intention to buy shares even at the falling prices but rather they are thinking to get out of the market after selling their stake in the big shares, they added. The total market capitalisation has, over the last two months, progressively declined from Rs 385bn to about 340bn, showing how the values of shares are eroding but subtly, without creating scare among investors. Minus signs again dominated the list, although bulk of selling was directed against the overvalued shares having a fair profit margins. PSO led the list of major losers, falling by Rs 10 followed by other pivotals such as Adamjee Insurance, ICP SEMF, MCB, and 4th ICP Mutual Fund, falling by Rs 1.50 to 5. Among the leading MNCs, which came in for renewed selling and fell further, Shell Pakistan, General Tyre, Indus Motors, BOC Pakistan, Colgate Pakistan and Brooke Bond Pakistan were leading which suffered fall ranging from Rs 2 to 3. Engro Chemicals and Glaxo Lab also followed them despite reports of higher earning and predictions of good dividend, falling Rs 2 to 3. Balochistan Wheels, which has been in active demand over the last few sessions on conflicting rumours about the management change and had risen sharply, also came in for active selling but fell modestly. Whether or not it resumes its upturn in a falling market in the coming sessions, will largely depend on the positive background news. Some of the leading shares, however, managed to show good gains under the lead of Javed Omer, EFU Insurance, Nagina Cotton, Packages, Quice Foods, Gillette Pakistan, United Distributors and Security Papers, rising by one rupee to Rs 2.75 but the gains were technical adjustments rather than genuine increase in a falling market. The most active list was topped by PTC vouchers, off one rupee on 7.897m shares followed by Hub-Power, easy 45 paisa on 3.373m, Dewan Salman, off 75 paisa on 0553m, FFC-Jordan Fertiliser, lower 10 paisa on 0.347m and Dhan Fibre, easy 25 paisa on 0.247m shares. Other actively traded shares were led by newly listed Commercial Union Assurance, off 40 paisa on 0.222m, Faysal Bank, off Rs 1.05 on 0,348m, Ibrahim Fibre, lower 35 paisa on 0.266m, and Southern Electric, easy 10 paisa on 0.193 m shares. There were several other notable deals also. Trading volume fell to 18.984m shares from the previous 22.447m shares owing to the absence of leading buyers. There were 349 active scrips, which came in for trading, out of which 192 suffered fresh setbacks, while 65 rose, with 92 holding on to the last levels. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. Annual Subscription Rates : Latin America & Caribbean US$ 93 Rs. 2,700 North America & Australasia US$ 93 Rs. 2,700 Africa, East Asia Europe & UK US$ 63 Rs. 1,824 Middle East, Indian Sub-Continent & CAS US$ 63 Rs. 1,824 Please send the following information : Payments (payable to Herald) can be by crossed cheque (for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). Name, Postal Address, Telephone, Fax, e-mail address, old subscription number (where applicable). Send payments and subscriber information to : G.M Circulation, The Herald P.O.Box 3740, Karachi, Pakistan We also accept payments through American Express, Visa or Master Card. Allow 45 days for first issue.

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EDITORIALS & FEATURES

960719 ------------------------------------------------------------------- A monarchy, Madam, a monarchy ------------------------------------------------------------------- Ardeshir Cowasjee FROM Fali Sam Nariman, senior advocate of the Supreme Court of India, President of the Bar Association of India, President of the International Council for Commercial Arbitration, Vice-Chairman of the Executive Committee of the International Commission of Jurists (Geneva), and a council member of the International Bar Association Human Rights Institute: New Delhi, April 23 1996. Dear Ardeshir, I was delighted to read your extremely well- written article in the Asian Age this morning, reproduced from the Dawn [Glass Towers, April 12]. It requires wide distribution in our large cities as well and I have already sent a copy to our great Environmentalist Judge, Justice Kuldip Singh, Senior-most Judge in the Supreme Court of India. More grease to your elbow. P.S. If Justice Kuldip Singh was a Judge of your Supreme Court he would have (on reading your article) issued notice suo moto and have taken on board the matter you refer to  and have asked the builders to justify the legitimacy of the construction. Karachi, July 14 1996. Dear Fali, Thank you for your letter of April 23, concerning Glass Towers. In the meantime, you must have received my faxes with all the news of how our judiciary has triumphed. The Executive has still not implemented, in toto, the Supreme Court judgement of March 20, but the Chief Justices have exercised proper damage control. Those judges, they consider unsuitable for confirmation, are being assigned no work. On the Glass Towers front: Before our judges could take any action, the Chief Minister of Sindh, on reading my column, asked the Commissioner to inquire into his (the CMs) own orders and submit a report. An official press handout from the Information Department of the Sindh government stated that Sindh Chief Minister also directed the Deputy Commissioner, Karachi South, to immediately stop construction work of Glass Towers at the site till the submission of the inquiry report. People were pleased. Here at last was a minister willing to look into himself and to perhaps correct himself, they said. They assumed that the protuberance would be demolished, their road would be widened, and the building would be built in consonance with the regulations. But those few who really know how things work in our country knew that those working under the CM  the Commissioner (who is also the Chairman of the Governing Body of the Karachi Development Authority  KDA), the Director-General of the KDA, its Chief Controller of Buildings, their staffs and all other receivers of the moolah, who had aided and abetted, would neither be willing nor be able to provide any evidence that might prove that their master, the Chief Minister, had wronged the people. An inquiry of sorts was held, and work on the building site was surreptitiously restarted. The Deputy Commissioner, when asked, said that neither were written orders given to stop the work nor was he aware of when and upon whose orders work had started again. I then faxed the Commissioner for clarification, asking him to send me a copy of his findings. I received a frightened bureaucratic reply: The inquiry report is an official document sent to the Chief Minister, who alone is competent to make it public, if it is in the greater public interest ... I am not aware of any written orders regarding suspension or restart of work. Attempts to convince the Commissioner that the issue is of great public interest were unsuccessful. I also faxed the Chief Minister, but naturally there has been no response. However, all is not lost. The harried citizens have raised funds. Barrister Mohammed Gilbert Naimur Rahman has been instructed, and we are filing a petition in the High Court of Sindh. That good Christian, Citizen Engineer Roland de Souza (who has done gallant work in an attempt to control illegal constructions all over Karachi and in some cases has succeeded), working in conjunction with the citizens environmental body SHEHRI, has provided the grounds based on at least ten violations of rules and regulations, including but not limited to, insufficient set-back, improper conversion of land use, illegal coverage of compulsory open spaces, illegal change in structural layout, etc. etc. Why and how is it that minorities have more civic sense than the majority? I was recently reading about the people in charge of municipal and civic affairs who were responsible for building the parks and gardens of Bombay and Karachi. The names will gladden your staunch Zoroastrian heart. In Bombay, the presidents and mayors and commissioners of the municipality have been: Dossabhai Faramji 1875-76, Sir Ferozeshah Mehta 1884-86, Muncherji Cowasjee Marzban 1890-91, Cowasjee Hormusjee 1896-97, Sir Dinshaw Vatcha 1901-02, Sir Ferozshah Mehta 1905-6, Dr Cowasjee Dadachanjee 1910- 11, Sir Ferozeshah Mehta 1911-12, Ferozshah Setna 1915-16, Sir Cowasjee Jehangir 1919-20, Sir Rustom Masani 1922-23, Sir Homi Mody 1923-24, Dr Shavax Batliwalla 1927-28, Sir Ardeshir Dalal 1928-29, Jehangir Bomanbehram 1931-32, Khurshed Narriman 1935-36, Behram Karanjia 1939-40, Dr Manchershah Gilder 1943-44 (elected from jail during the Quit India movement and since he could not preside, Minoo Masani sat for him,), Eduljee Sabawalla 1947- 48. Thereafter, politics came in. But even then, another Bomanbehram was elected mayor in 1974-75. From 1984-86, civil servant Jamshed Kanga was appointed administrator. It was Kanga who suspended the irregular building of Pratibha, the illegally built upper stories of which were ordered to be demolished by the court. In Karachi, Jamshed Nusserwanji was the President of the Karachi Municipality for some 16 consecutive years and then became the first Mayor of the Corporation. Other Parsi Mayors to follow him were Rustom Sidhwa, Ardeshir Mama, and Sohrab Katrak. Over the years the Municipality also sported a fine corps of Parsi Chief Officers, Health Officers and Engineers. Well-known names that readily come to mind are Dr Eruchaw Shroff, Dr Talati, Dr Bilimoria, Engineer Setna. Soon after WW1, philanthropist Behramji Jehangir Rajkotwalla donated his own piece of open land in the centre of the city, which still exists and is known as Jehangir Park. Before its post-partition parametric partial desecration, it was large enough to hold a cricket field where pentangulars were played. Now for an interesting story. At about the same time, Sir Jehangir Kothari (whose photograph you see here) flattened a hill near the sea-shore and built a palatial house. The Governor of Bombay and his wife, Lord and Lady Lloyd, came to tea. Seeing the vista, Lady Lloyd remarked on the magnificent view and the glorious setting of Kotharis house. She suggested that he build a parade, a pavilion, a bandstand and a pier and donate it all for the enjoyment of the people of Karachi. Why not? said Kothari. He demolished his house, imported sandstone from Jodhpur, built the structures and then invited Lady Lloyd to inaugurate the pier on Jamshedi Nauroze, March 21, 1921. Soon after partition the open spaces around this complex were designated and gazetted for development as a park along the sea front. But since the 1970s these spaces have been consistently in danger of encroachment by our greedy politicians who are incapable of seeing any space without visualising how much money could be made if built upon, and so illegal structures have popped up here and there. We recently had a civic-minded KMC administrator, Fahim Zaman, who managed to bulldoze all these illegal structures except for one, a hideous intrusive high-rise venture known as Costa Livina in which the high-ups of Islamabad are embroiled. Citizens had gone to the High Court, which stayed the construction early in 1994. But, the judiciary later having become almost wholly politicised, the rich and the powerful managed to have the stay vacated in September 1995 and construction was recommenced. Since then our judiciary, as you know, has thrown off the government yoke, asserted itself and become independent. On appeal, the Supreme Court has now again stayed construction. The ding-dong continues. What happens to politicians who desecrate parks and open spaces in Bombay, Delhi or Madras? Whilst replying, would you please let me have details of the case in which that strong Parsi High Court judge of Bombay, Bakhtawar Lentin, convicted sitting Chief minister Antulay for corruption? To end, a story about an open space, a queen and a prime minister, which I have often narrated, which may be of cheer to those who fear that fields will lose to bricks and mortar, and which those that hope to gain from such an exchange would do well to remember: Were I to enclose Green Park within my garden, what would be the cost?, asked Queen Anne of England. A monarchy, Madam. A monarchy, replied Robert Walpole, parliamentarian and adviser to his Queen. Good wishes, my friend. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960719 ------------------------------------------------------------------- Forget about debt, retire the minister ------------------------------------------------------------------- Mohammad Malick ISLAMABAD: Thursday must have been a hellish day for the ever smiling Makhdoom Shahabuddin. Its one thing playing the finance minister once a year, by reading out a speech on behalf of V.A.Jafarey and an altogether different proposition to field real questions during the Question Hour. And then to top it all, also take notes of a fire spitting Sartaj Aziz. As for the embarrassments, they started early in the day for the beleaguered finance minister. Replying to a question the minister had claimed that the government had serviced a debt of US$200 million. Nothing wrong with that unless of course what you actually want to say was that the debt had been retired, and not serviced. When the minister repeated his answer, Chairman Wasim Sajjad probably appreciating the ministers limited command over his subject, condescendingly pointed out the difference. A sheepish smile was all that the Makhdoom had to offer in return. But there was more to come. No matter how gloomy the figures or demoralising an economic scenario, Sartaj Aziz simply loves to talk numbers and nothing gets his adrenaline flowing quicker than the prospect of a clash over statistics. A fact soon revealed to the chagrin of the finance minister. The former finance minister questioned Makhdooms contention by citing statistics from the Pakistan Economic Survey 1995-96 and claiming that the figures did not match to show a debt retirement to the said tune of US$200 million. By now Makhdoom Sahib had apparently had enough of economics and he snapped back by saying that Sartaj was quoting private statistics. Once again, a smiling Wasim Sajjad interjected by asking the finance minister: If the Economic Survey is not an official document then what is? This time around the finance minister appeared too embarrassed to even offer a sheepish grin. But if the tired looking Makhdoom thought that his troubles were over for the day, he couldnt have been more wrong because none other than Sartaj Aziz opened the debate on a motion regarding the economic situation of the country. It is difficult enough keeping pace with the fast speaking Sartaj Aziz but when he gets excited with his statistical crunching, it becomes almost impossible to keep up with his words, logic, and numbers. So one cannot really blame Makhdoom Shahabuddin for throwing away his pen in despair, despite his brave initial attempt to take notes of the rapid firing Sartaj Aziz. Not that anyone ever expects good news from a finance minister, whether serving or former, but even then the economic scenario painted by Sartaj Aziz was exceptionally grim. According to his observations and contrary to what the government has persistently claimed, the budget deficit stood at over 7 per cent as against the government touted 5.8 per cent. One can only hope that the government is not lying considering that every percentage point means an addition of Rs25 billion to the deficit figure. Sartaj Azizs discourse was nothing if not despair galore. The country suffered a negative trade balance of US$3 billion, its foreign exchange reserves coming down to a mere US$1.3 billion from US$2.5 billion while the short term liabilities stood at a walloping US$7.5 billion. One slight incident, sparking a run on foreign exchange accounts and the country could find it even impossible to even meet its quarterly debt servicing instalment of a mere US$500 million. Add to that the annual tag of almost US$4 billion that will have to be paid as a result of contracts with the private producers of power in the country and the future could not appear any darker. Where is all this money going to come from, he asked as those sitting in the galleries felt their hearts sink into their socks. Then of course there was Pakistans disappearing act from the World Competitiveness Report. The World Economic Forum is as respectable an economic forum as they come, remember how even President Farooq Leghari felt privileged to have represented Pakistan in WEFs home base, Davos. It so happens that the WEF takes out a performance report of listed economies based on eight different criteria including the countrys ranking on the basis of its infrastructure, economic policy, fiscal openness etc.,. The findings of this report are taken very seriously by investors and creditors in their ratings of a specific country. Pakistan, according to Senator Sartaj, had remained listed in it and above India for that matter in 1991, 1992 and 1993. It is there no longer while India has crawled up in the ratings. May be someone, including the formidable economic duo of Qazi Aleemullah and V.A.Jafarey would like to explain why? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960723 ------------------------------------------------------------------- Our image abroad ------------------------------------------------------------------- Dr Maqbool Ahmad Bhatty THE Prime Minister is currently on an official visit to South Korea, an Asian Tiger that stood at approximately the same level as Pakistan four decades ago, but whose GNP today is at least 20 times higher. Her visit will undoubtedly serve to project Pakistans concerns and perceptions in Seoul, and lead to agreements that would promote our trade and economic co- operation. Summit diplomacy has become an important instrument for advancing the national interest over the past few decades and Pakistani leaders, both elected and unelected, have been drawn into it. One aspect, that began from the early years of Pakistan, but has become accentuated with time, is that our leaders regard their foreign visits as a manifestation of our national prestige, and have tended to organise them on a lavish scale, with large entourages, consisting of personal staff, ministers, politicians, officials, and media teams. Our leaders also tend to be over- generous with gifts, making the cost of such tours disproportionately high. The expense involved in this opulent style, which successive presidents and prime ministers have maintained, and which comes through in news coverage of such visits, has not only aroused concern at home, but even attracted the attention of the foreign media and leaders over the store we Pakistanis set by pomp and display which does not quite accord with our status as one of the worlds poorer developing countries. The present prime minister has maintained a high tempo of personal diplomacy which reflects her close interest in foreign policy. One of the major considerations in carrying out such tours is that they are not only good for her personal image, but also serve to project a favourable image of Pakistan. Speaking of the national image, there can be no doubt that the proper projection of our perceptions and rich culture can result in our country being seen in a better light. Therefore our embassies, and media can play a role in publicising our national achievements, and contribution to worthy global causes. The tours of leaders at the highest level certainly provide useful opportunities to draw attention to our positive points. At the same time, the undeniable fact is that our image abroad cannot be better than the reality at home, and in this context, that image looks fairly tattered at the present time. The basic reason for this is that, except for the first few years, when the legacy of the Quaid-i-Azam, and the challenges of Kashmir, and of absorbing several million refugees had generated self- sacrifice and idealism, we have seen expediency, rather than principles governing our national life. The generation that participated in the struggle for Pakistan has had its dreams for a country rising to greatness, prosperity and international esteem by adhering to the ideals propounded by the Quaid-i-Azam utterly shattered by the fact that Pakistan is now regarded as the second most corrupt country in the world. Anybody in contact with foreign analysts and observers finds them perplexed at the lack of national feeling and loyalty among most Pakistanis involved with international transactions. The writer has come across comments from responsible persons belonging to diverse countries, such as the US, Japan and Germany that Pakistanis are willing to sacrifice national interest, in order to get the maximum personal benefit from contracts or purchases. A foreign source that has had experience of purchasers from both Pakistan and India, mentioned that whereas Indian officials first checked on the quality, and bargained on obtaining the most value for money, before claiming their commissions, the Pakistanis were indifferent to these considerations, and even suggested price hikes to increase their cut. There are always honourable exceptions, but the impression most foreign business people have is that Pakistanis are obsessed with quick profits, rather than the national interest and image. The same preoccupation with quick wealth has become the dominant motivating force within the country. The profit motive is the engine that drives the free market economy, and a certain degree of corruption on the part of officials who have the authority to award large contracts is to be found in most developing countries. However, once a contract has been awarded, there is some effort to ensure that the work conforms to basic standards. The author found, during a recent tour, that in South East Asian countries, there was no compromising on the quality of performance, and for instance, the newly constructed roads and other structures were of international standard. In Pakistan, the poorly constructed roads are pot-holed and give everybody, including foreign visitors a rough ride because a contractor has to satisfy corrupt officials at every level, and seeks to maximise his profit by constantly lowering quality. The corruption, and the accompanying lowering of the quality of life, touches not only the citizens, but also the foreign visitors. Even where the foreign business people have no direct contact with corrupt officials, they experience the delays, and lack of courtesy and efficiency in a system that does not run smoothly. In fact, despite official decisions to simplify procedures for foreign investors and buyers of our exports, the pervading greed, and inclination on the part of most of those involved to get some personal advantage comes through. Foreign envoys, including the US Ambassador, have complained that their business people get quite discouraged by the procedures and practices that now look routine to us, but turn off investors. The writer heard members of a US delegation of academics and business experts point out that the business climate in India, which they had visited before coming to Pakistan, was far more congenial, and they had heard our business people complain about the corruption and harassment around them. The effect of this on our image abroad can be imagined. This raises questions as to what has produced this steady lowering of the moral fibre. The regrettable conclusion one has to draw is that after the Quaid-i-Azam, whose name stood for integrity of the highest order, the quality of leadership we have had, and the values that have emerged from the example set by the rulers, have resulted in a society wedded to the pursuit of quick wealth, without regard to the means. Such quick riches do not come from hard work, or honest commerce, and corruption of all types has permeated our institutions, and created conditions in which genuine progress is hard to achieve. Another unfortunate development has been that a normal system of accountability has not acquired roots, due to political instability, and the virtual monopoly of power by a small elite of entrenched interests. The system of checks and balances inherent in a true democracy, where the legislature enacts laws and also scrutinises the functioning of the executive, while the judiciary upholds the sanctity of the constitution, and of the laws, has not taken hold, as the ruling party of the day seeks to establish its control over all three branches of the government, by politicising the civil services, and influencing the judiciary in its favour. Sadly, the erosion of democratic norms has not been confined to periods of military dictatorship, but has continued even after the restoration of representative government. The result has been truly catastrophic, specially as successive elected governments have not only tampered with the merit system, in packing the executive with their favourites, but also handled the countrys economic affairs so poorly that it has fallen to international agencies, such as the IMF and the World Bank to impose a modicum of discipline in our financial management. This in itself does not help our international image. Pakistan inherited a fairly effective system of government from the British colonial rulers, and in the early years, our achievements in absorbing millions of refugees, and getting the development process initiated drew international praise. Till the 1960s, developing countries from East Asia, such as South Korea and Malaysia, used to send their delegations to Pakistan, to see how a successful development programme was operated. Three decades later, these two countries have taken off, with per capita incomes of $10,000 and $5,000 respectively, while we bring up the rear of the developing countries, with a per capita income of less than $500. The past few years have seen an acceleration of negative trends. Our tax collectors have not been enforcing the laws, using their powers and discretion in a manner that enriches most of them while depriving the national exchequer of over 40 billion rupees annually, according to a five year old estimate by a former Finance Minister, Dr Mahbubul Haq. Till recently, the number of taxpayers was below one million, with a good percentage of legislators paying no taxes at all. Each year, as we stagger from one financial crisis to another, the burden of fresh taxes continues to fall on the common man, while the landed aristocracy remains exempt, and the gap between the rich and the poor widens. Thanks to a combination of corruption, political interference, and lack of accountability, an atmosphere of gloom, that sometimes approaches despair, prevails, as law and order deteriorates, and people begin to wonder whether the system under which they are living is really suited for the country. Many perceptive analysts fear that unless remedies are found for all our ills, we may be headed for a violent revolution, early signs of which are evident from the resort to massive street protests by a growing number of political parties. All these developments and trends are not hidden from the world, and the fact that both domestic and foreign investment are lagging, underlines the need to take urgent action to arrest and reverse the slide towards insolvency and chaos. Such action is required, above all, by the government, which is in the seat of power. However, all leaders of opinion, and people of influence, have to recognise that we are in a situation where it is not only our image that is tarnished, but that our solvency and survival are at risk. In urging Pakistan to play its part in promoting peace and progress in South Asia, US Ambassador to India, Frank G. Wisner told the Staff College at Quetta on 10 July, that India was destined to be the fourth largest economy in the world by the year 2025, that is within one generation. While the US interest in stability in South Asia is a separate subject, the fact remains that our very weakness and disarray makes it difficult for us to take a stand on our just rights. The next century approaches, and it is not only our image that needs to be improved through summit diplomacy, but the whole political and economic fabric has to be brought back on the rails through accountability on the basis of Islamic and democratic values. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960722 ------------------------------------------------------------------- The army as constitutional stabiliser ------------------------------------------------------------------- Ayaz Amir THE army as we know to our cost has been traditionally a threat rather than a help to Pakistani democracy  its propensity for interventionism being kept in check by a thread as finely spun as that which held aloft the sword of Damocles. With the three exceptions of General Gul Hasan who was retired prematurely, Tikka Khan who, while sharp about many things, was innocent about others, and Waheed who cultivated an image of neutrality while masking his ambition for an extension, other army commanders  from Ayub Khan down to Asif Nawaz and the hapless Aslam Beg  have played with relish the role of Ataturk- in-waiting. To improve their dramatic chances and to give a helping hand to destiny, they have also not been above using the power at their disposal to destabilise political governments. In sharp contrast to this historical record, the army leadership at present, wittingly or otherwise, is proving to be a mainstay of democracy. It is fulfilling this role not by saying anything loud or doing anything overt but simply by looking at the political arena through a detached and somewhat austere pair of spectacles. More than anything else, it is this cold detachment on its part which is acting as a counterweight to the shenanigans and excesses that are to be seen in the political sphere, because a cold eye, whether its glitter is polished in a drawing room or the parade ground, discourages the taking of liberties. Whether behind this cold eye there at all lurk any Kemalist ambitions can only be, in the absence of anything verifiable, a matter for conjecture and the soothsaying arts. But what can be said with a fair amount of certainty is that if at present there is anything which is helping maintain a balance in the countrys politics, it is the sphinx-like attitude of the army command and the expectations that, rightly or wrongly, flow from this attitude. The leading figures of the government have made plain what they think of the higher judiciary and its verdict in the judges case. But if there is anything which has prevented them from giving free rein to their instincts in this matter, it is not constitutional niceties but the feared attitude of the third leg of the tripod from which hangs the cauldron of power in this country. If President Farooq Leghari is beginning to show some signs (even if ever so timid and hesitant) of his misgivings regarding the more irresponsible acts of the government, it is because of the strength he derives not from the Eighth Amendment but the perceived attitude of the army. It is true that during the last two and a half years nothing has been left undone in giving politics a bad name. The extent of national corruption and maladministration is no secret. But even in this free-for- all atmosphere if there is still some remaining check on the total misuse of power, it is the rebuke implicit in the studied silence of the present army leadership. Without even this check, imperfect as it is, there is no knowing where the arrogance and misapplication of power would have taken the country. Imagine if lobbying and political influences had been allowed to determine the choice of army leadership after the stepping down of General Waheed. The other two leading contenders for the top post had each been assured by their respective backers that they were sure to get the prize. Nor was General Waheeds posture completely unambiguous. While spreading the impression in public that he was vigorously averse to an extension, he had come round to the point (such being the workings of human ambition) where he was keen to get one. It was at this point that the President, sensing the mood of the armys field commanders, did the right thing by brushing aside extraneous influences and basing his decision, which constitutionally was his alone to take, on seniority and merit. Since few men are indispensable, it is often the case that even if the very best man for any particular post is not chosen, no great catastrophe ensues because the person chosen in his place can also do the job reasonably well. The replacement of General Waheed, however, was not that simple a matter because if the seniority or merit principle had not been followed, the principle of army unity (to put it no plainer than that) would have been subverted because, given the reputations of the other two leading contenders, it would have been obvious even to junior officers that in preferring either of them the political leadership had been motivated by other than the purest of motives. Mercifully, that catastrophe was averted for which the President deserves the nations thanks. Otherwise, however, it is the Presidents lack of resolution (for what other name is it possible to give it?) which has bestowed a special significance on the present detachment of the army command. In instance after instance he has shown his unwillingness or his inability to stand up to the more bizarre and irresponsible of the governments actions. A constantly interfering president is not what Pakistan needs but a president whose maturity can keep a check on the juvenile tendencies which sooner or later lie in wait for most Pakistani governments, is an intrinsic if not the most important feature of the present constitutional scheme (enshrined in the Eighth Amendment) which, despite its many problems, has given the Republic constitutional continuity for the last 11 years, something which compares more than favourably with the first democratic decade of the countrys history. Time and again President Farooq Leghari has failed to come up fully to the responsibilities of his office, so much so that that even some of his most ardent well-wishers in the Press are now feeling constrained to admonish him for his lapses. Since there is no such thing as a vacuum in politics, the slack shown by the President has been taken up by the army command  but again, it needs to be emphasised  not by anything overt that it has done but simply by donning a mask of cold politeness. The paradox in this posture is striking because, whereas in the past the army has threatened democracy by fomenting and supporting intrigues against civilian governments, at this juncture the army leadership is playing a role supportive of democracy by making a cult of propriety. It is not saying anything (indeed its PR wing has been working overtime recently to deny things wrongly attributed to the army command), it is being proper and it is keeping its distance from what is going on in the political arena. In some ways this attitude is not much different from that of General Waheed who prided himself on keeping the army out of politics. The vital difference, however, is that whereas General Waheeds neutrality seemed born of simplicity and a soft corner for the present civilian dispensation (thereby earning little respect for itself even within the army), the neutrality now to be seen is not a product of any infirmity of mind or vision. Not that it should spill over into anything even remotely interventionist because there are just so many interventions that a country like Pakistan can take. But the mere fact that there is one institution which is acting as a psychological check if no more on the political wildness which is pushing Pakistan into desperate straits, gives ground for hope that two years from now, if not sooner, when the time for the next elections approaches, the country will be able to make a fresh start and leave its present troubles behind. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960724 ------------------------------------------------------------------- Making public places safer by barring the public ------------------------------------------------------------------- Mohammad Malick ISLAMABAD: As if things weren't tough enough already for passengers suffering from the ASF's high-handedness, the bomb explosion at Lahore airport has now provided them with a carte blanche to impose ridiculous restrictions in the name of security. And this disturbing development was not lost on a handful of senators. As expected, the upper House created a bigger noise than the ear-shattering bomb explosion a day earlier. The treasury senators feigned genuine grief at the loss of human lives while the opposition hawks wanted no less a compensation than the government's resignation. In all the din, one barely audible voice said something about a British transport minister resigning after a train had derailed and wanted Gen Babar to do the same. After all, as the interior minister was it not his responsibility to ensure the safety of the lives of the ordinary citizens? the squeaky voice argued. It would have been more appropriate for the senator to demand the head of the defence minister since it was the responsibility of his ministry to ensure safety at the airports, but frankly, it was an irrelevant utterance any way. No matter who was asked to accept responsibility and resign, would never do it because in Pakistan ministers do not bother with such trivia as accepting moral responsibility for the lapses of their underlings and resign. On the contrary they even protect their offending subordinates. Does anyone remember hearing about the prosecution of any government functionary whose professional lapse may have resulted in the loss of human lives, let alone of wealth and property? Never! And there's no possibility of it changing at least in the near future. With the hated Indians lurking a few miles away across the border, everything can and will be conveniently pinned on them and then forgotten about. The hidden foreign hand will take the credit once again while our intelligence sleuths remain busy with more pressing engagements like pampering their own superiors and ensuring a wrinkle-free checking-in for the VIPs. For a change the interior minister has hinted at the possibility of the involvement of religious zealots of the Jamaat and of the MQM as well, but in the next few days the dragnet of allegations could rope in anyone. Meanwhile, the ordinary man and his life be damned. Ironically, it will be the ordinary man once again who will bear the brunt of atrocious inconveniences in the name of his own personal security, and the process has already begun. Vehicles are being stopped a zillion miles away from the original designated areas, people are being barred from sauntering anywhere near the main building unless they possess a ticket. Thanks to the absolute lack of any special training, or even that of a mundane nature, security in Pakistan does not mean effective policing but simply the pushing away of people as far away as possible from the building or the person being protected. Some of the opposition senators advised the government against developing a mindless security phobia and confusing it with effective security measures. It was pointed out that there were already enough security agencies operating at airports, three to be precise without counting regular police, and what they needed was better training and not permission to erect more barriers after every hundred metres. Already, the overzealous ASF authorities have sealed off the visitors gallery area at the Lahore airport while similar public-barring knee-jerk reactions are seen at almost every airport in the country. It is precisely such ill-planned reactive approach that needs to be avoided, some senators later opined in the cafeteria. The Leonardo de Vinci airport in Rome, situated in the heart of a city that remained a target of terrorist activities for a long time, remains one of the busiest airports in the world. Not that long ago, a bunch of terrorists massacred passengers in the departure lounge, forcing the government into an immediate revamping of its security arrangements. But even today, the airport appears just as relaxed as before the gory incident. People can still go right up to the departure gate to see off their friends and relatives. There are no barriers, and vehicles are not forced to park a hundred miles from the main building as it has already started happening at our airports. But in effect a lot has changed. Mainly, the change has been real and covert. Electronic monitoring devices now cover the entire area and are manned by vigilant officers trained to spot the slightest suspicious behaviour. The security check of baggage is stricter, and there are more policemen patrolling but not necessarily in uniform and demonstrating their authority by giving people a hard time. Similarly, other measures have been incorporated but in no way has the public been made to suffer any inconvenience. Only the security agencies have been made to work harder and more efficiently. The interior minister expressed the opinion that things would be difficult to manage unless the very culture of our eastern society was changed which had a habit of sending large contingents of friends and relatives to the airports to see off or receive friends. One is forced to draw a parallel with Italy once again where, if Gen Babar ever got a chance to travel as an ordinary passenger he would see it for himself, a somewhat similar social system prevails. It is routine to spot large groups of people seeing off a single passenger. But the Italians have apparently taken a wiser and less time-consuming approach than that proposed by the former general; instead of waiting for the society to change its ways, they changed the way their security agencies operated and made them more efficient. Makes a lot of sense, does it not General Sahib?

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SPORTS

960725 ------------------------------------------------------------------- Pakistan in true form for first Test at Lords ------------------------------------------------------------------- By Qamar Ahmed LONDON, July 24: Not far from Lords the allegations of ball tampering and racism are on the boil in a court of law with former Pakistan captain Imran Khan defending himself against Ian Botham and Allan Lamb. The simmering row continues and is like to reach a crescendo in the midst of the first Test starting tomorrow at the headquarters of the game. Maybe perhaps the court case has taken the gloss out of it or maybe it is the calming influence of two captains, Wasim Akram and Mike Atherton, the county colleagues, who at every opportunity have stressed the fact that this series is a bridge-building exercise. The Test at Lords to be watched by millions on satellite, will be a matter of immense interest, irrespective of the outcome. The home advantage would favour Atherton, the crowd, a great a majority of whom would hate to see England lose, would obviously cheer the underdogs, which England are in this series. But they also know that in strength, in quality and on form the visitors are a lot a better bet. Their unpredictability is what excites them. When on song Pakistan could be a pretty strong side and that is what they fear. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960724 ------------------------------------------------------------------- US media call Games a 'colossal mess' ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, July 23: The US media is describing the Atlanta Olympics as a "colossal mess" with both the print and the electronic media making the chief organiser Billy Payne look like a bufoon and the IOC giving him a simple warning: Fix the problems, now." "Barcelona and Seoul did not work like this. You do not like to say this but even Havana, when it was the host of the Panama Games in 1991, was a model of efficiency compared to the so called "city too busy to hate," the Washington Times said under the headline: "If it ain't broke, it ain't in Atlanta." Major TV networks, not allowed to show live coverage because NBC has grabbed everything in a 458 million dollar package, are concentrating on what has gone wrong with the games. More so because even the American teams are not winning golds. "Too much security, too little efficiency and too much of what is not needed, incompetence," said one network reporter. The Washington Times summed it up with the concluding line; "You have a colossal mess" in a piece which began with: "This place is a mess - gone with the witless.' This is what the Billy Payne Games are like: rats in a maze with a serious deodorant problem, The Times said. And where did they land some of these interpreters? You should have heard the one translating for the Cuba women's basketball coach Sunday. She wasn't too strong beyond "sir you would ask the coach a question. He then would talk for about a minute. Then she would interpret his thousand-word answer to be something like this: "He says yes." This is just great. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960722 ------------------------------------------------------------------- Shahbaz leads Pakistan to win over US ------------------------------------------------------------------- Sydney Friskin ATLANTA, July 21: The talking point of Pakistans 4-0 victory over the United States in the Olympic hockey arena was the role Shahbaz Ahmed played in creating the chances for three of the goals. Shahbaz, whose entry into the tournament was accepted by the tournament director only six hours before the deadline was not in the original line-up but he made his appearance early in the game when the outside left Aleem Raza was taken off. The late inclusion of Shahbaz in the Olympic squad meant that Mohammed Nadeem (ND) had to go. Pakistan did not have to wait long for their first goal. In the Tenth minute a deft flick by Shahbaz Ahmed from the left flank pierced the American defence and Mohammed Shahbaz beat the goalkeeper from close range. The Americans retaliated a couple of minutes later with an individual raid by Nick Butcher, the outside right, whose shot missed the target. Pakistan celebrated this escape by scoring their second goal in the 18th minute which was fashioned initially by Mohammad Shahbaz whose measured pass to the left was picked up by Shahbaz Ahmed. Back came the ball into the circle and Kamran Ashraf put the ball beyond the goalkeepers reach. The United States, however, did not give up trying and frequently kept bursting into the circle but all to no avail, Mansoor Ahmed having little difficulty saving a shot by Steve van Randwijck. Ten minutes before the interval Pakistan tightened their grip on the match with their third goal but this time it was Mohammad Sarwar, the outside right, who laid it on. Travelling at high speed he cleverly steered the ball to Kamran Ashraf who ran in his second goal. By that time the Americans knew their fate and were lucky to escape further disaster when Pakistan squandered a penalty corner just before the interval. At the start of the second half Mansoor Ahmed took himself off and called on Khaleed Mahmood to keep the goal, leaving Tahir to lead the side. Khalid discharged his duties well and made a couple of smart saves before Pakistan began to dictate terms again. By the time the second half was ten minutes old Pakistan had established clear mastery and the Americans were seen defending their citadel desperately. Tahir missed a couple of chances through erratic shooting and a goal by Kamran was disallowed apparently for a goalmouth infringement. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960723 ------------------------------------------------------------------- Witnesses say Picking seam of ball a common practice ------------------------------------------------------------------- Athar Ali LONDON, July 22: At the resumed hearing of the libel case against Imran Khan before the Queens Bench Division of the High Court it was accepted by two witnesses called on behalf of the plaintiffs, Ian Botham and Allan Lamb, that the practice of picking the seam of the ball was a common one in English cricket. Former England wicketkeeper Bob Taylor, was the first to give evidence today, as the hearing entered the second week followed by Gladstone Small, the medium pacer Robin Smith, the South Africa-born England Test player and Don Oslear a retired umpire. On Tuesday the court will have a shorter hearing when David Gower, the former England Captain, Mike Atherton, the present captain, and David Lloyd, the England coach, will take the witness stand. At the outset of the hearing the 12-member jury were told that India Today magazine which has been cited by Ian Botham and Allan Lamb in the case has a circulation of over 300,000 in India, and 25,000 internationally, including the UK. Ian Botham and Allan Lamb are suing Imran Khan for making remarks against them in the magazine of being racists and lacking in education and upbringing. Botham has also sued him for saying in The Sun that most top bowlers in the past 20 years had indulged in ball-tampering. This, he assumes, also included him as the highest wicket-taker for England. The court room was, despite the hot and humid weather London is going through, full with the upper gallery also crowded with spectators who mostly come to see their former and present cricket heroes give evidence. They saw Robin Smith stumbling several times while in the witness box, not being able to comprehend some of the tough questions put to him by the defendants counsel, George Carman QC. He admitted that he was nervous as it was not easy for him to appear in the court. LEGAL ISSUES: The jury was kept out this morning for about 45 minutes for the court to hear arguments from lawyers from both sides on certain legal issues. Carman was objecting to the introduction of some fresh evidence at this stage in the case. The sixth days hearing began with Bob Taylor, the former England wicketkeeper taking the witness stand. He was shown to be receiving the new ball in the 1982 Test between England-India from Ian Botham, which the cricket commentator in the video shown to the court, Ted Dexter, found unusual as he thought it was being given a thorough going with his gloves, possibly to remove some of the lacquer. In reply to the counsel for the plaintiffs, Charles Gray QC, he told the court that anyone who interferes with the ball to gain unfair advantage is guilty of cheating. But he never found Botham indulging in ball-tampering. He said that it was common practice for the bowlers to throw the ball to the wicketkeeper and was a natural action. It is not possible in a short time to remove any lacquer from the ball. Bob Taylors gloves were brought from the Lords museum to be shown to the jury. The record-making wicketkeeper also told the court that it was not illegal to press the ball into shape. He did not think what Ian Botham was doing on the video sown to the court of the 1982 Lords Test against Pakistan was in any way illegal. The defence has argued that Botham was using his thumbs vertically down on the seam of the ball. He also said that in the Sun article when reference was made by the defendant to top bowlers of the past twenty years all having done ball-tampering, he included Botham and Willis among them. But during cross-examination by Carman, Bob Taylor did say that lifting the seam was a habitual practice in English cricket and was taken as part of the game though it was in breach of Rule 42. His view is that the bowler can put the ball into shape with the agreement of the umpire. SMALLS CROSS-EXAMINATION: Gladstone Small, the West-Indies born player, who played in 17 Tests for England, besides playing for Warwickshire, did not agree with the question put to him by Gray whether he thought Ian Botham or Allan Lamb to be racists. Definitely not, he told the court. He also considered Botham to be the finest swing bowler of his time, someone he would definitely include, he added, among the top half a dozen bowlers. Botham was in his view never guilty of cheating or ball-tampering. There was nothing wrong in pressing the ball into shape though it is a difficult thing to do considering the toughness of the ball. But the video of the India-England 1982 Oval Test where Botham was seen pressing the ball was in no way an illegal act in the opinion of Mr Small. During cross-examination he did say that lifting the seam of the ball was a habitual practice with some bowlers but he did not find any English bowler doing it. Gouging the ball or scratching it was blatant cheating whereas he did not think pressing the ball into shape fell in that category though technically it may be illegal. The Hampshire and England cricketer was the next witness before and after the lunch interval. He said that he did not think Botham and Lamb were racists. He observed that in the 1992 series certain Pakistani players had tampered with the ball and he had personally watched them do it which to his mind was illegal. He recalled a casual meeting with Imran Khan at which Lamb was also present. The topic happened to be Aquib Javed who played for Hampshire in 1991. Imran, when told about Aquib being reprimanded, said that he should be more careful when tampering with the ball. In Smiths view Botham came among three top (post-war) English bowlers whom he had never seen doing anything against the rules. He also did not consider pressing the ball into shape as anything wrong. He agreed with the view of the present England captain, Mike Atherton, which the defence counsel read out from his book, that the practice of lifting the seam has gone on in English cricket since the day the game began. Robin Smith found it hard to give evidence when he was being questioned by Carman, the counsel for the defence. He groped for answers most of the time while in the witness box. He said he was not in a position of disagreeing with many of the cricket authorities, Carman had named, who had said that hair oil, lip salve, and sun creams were all used in varying degrees by bowlers. However, he was not aware of this. Botham complimented: The last witness to take the stand today was Don Oslear, a retired umpire, who as the third umpire in the one-day International at Lords, in which Pakistan played, was at the centre of a controversy regarding accusations of ball-tampering against some Pakistani bowlers. He does not feel that there was anything wrong in pressing the ball into shape but seam lifting is not an accepted practice within the umpiring fraternity though it is not easy to detect. He complimented Botham for not contravening the law in his experience. But when during cross-examination he was reminded that the International Cricket Council had cleared Pakistan of ball-tampering charges, Mr Oslear insisted that there was a hearing at which managers and captains of the two teams were brought together. He was also present, but did not know whether it was a disciplinary hearing. Mr Oslear caused a lot of amusement when he told the court that he had not read his own book. Tampering with Cricket, in which he has said he was victim of a conspiracy by his employers, The Test and County Cricket Board. Mr Carman quoted him as writing that there was a Bermuda Triangle at Lords in which things disappeared. It was for the sake of truth that he had appeared as a witness in a case brought by the former Pakistani Test player, Sarfraz Nawaz, against the Mirror and Allan Lamb which the plaintiff later withdrew. Mr Oslear went on to say that in his experience lifting the seam of the ball was not a habitual practice as described by a witness earlier. He also disagreed with Mike Athertons assertion in his book that it has gone on since cricket began. Other authorities were also cited by Mr Carman to make Mr Oslear give his opinion. But he disagreed with most commentators. I have no need to doubt their word but it is certainly not my experience. He said the same about the use of hair oil and sun creams. In his view defacing the ball comes under cheating not pressing the ball into shape. It is impossible to achieve it, he said. But Mr Carman caused much laughter in the court when he said: Sometimes one tries to do the impossible when he suggested that perspiration may be used to make the ball heavier on one side to achieve a swing. The hearing resumes on Tuesday when more former and present day cricketers will take the witness stand. Atherton and Lloyd have been suspended by the defence and will be cross- examined tomorrow so that they are free to partake in the first Test at Lords against Pakistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 960724 ------------------------------------------------------------------- Imran's counsel begins his arguments in libel case ------------------------------------------------------------------- Athar Ali LONDON, July 23: After the defeat that England suffered on the cricket field at the hands of the Pakistan team in the summer of 1992, knives were out for the Pakistani players and their former captain Imran Khan. This was stated by George Carman QC, counsel for Imran Khan, who began presenting his case in the High Court before Mr Justice French and the 12-member jury of seven men and five women. The libel against Imran Khan has been brought by two former England players, Ian Botham and Allan lamb, both of whom allege that in an interview with India Today magazine the defendant called them racists, and brought their class into question. Botham has separately asked for damages for an interview published in the British tabloid, the Sun which allegedly brought him into disrepute by implying that he had been guilty of ball-tampering. The charges are denied by Imran Khan who appeared in the High Court, accompanied by his wife Jemima, for the seventh day today. They both sat next to Kathy Botham and Lyndsey Lamb, wives respectively of the two plaintiffs. Ian Botham and Allan Lamb. Both Kathy and Lyndsey were the last two witnesses called by Charles Gray QC, counsel for the plaintiffs, who completed his case today. Earlier David Gower, the former England captain, took the witness stand on behalf of the plaintiffs. Carman had not finished opening the case for the defence when the court rose for the day, almost two hours earlier than the usual sitting time which goes on until after four in the afternoon. Carman was developing the point that Imran had written two letters to the plaintiffs to put the record straight that he meant no offence to the plaintiffs whom he regarded highly. He had offered an apology saying that in the India Today article he was misquoted and was willing to send a letter to The Times for publication to make his apology public. Attempts to reconciliation did not work, said Carman, because by then knives were out for the Pakistani cricketers. Contributions: The counsel for the defence began by saying that the case before the court was emotionally charged because race and class is central to it. It is bound to raise sympathies, prejudices and emotions. He pointed to Imran Khan and the plaintiffs who were all players who had made very great contribution to international cricket. The question may be asked why could not they make their peace and shake hands, said Carman who described them as "warriors" of sports. But, he added, that his client had offered his hand of friendship but it so happened that the plaintiffs walked away. Why was it so? The answer, said Carman, is not difficult to find because his client volunteered whereas the others conscripted. Carman told the jury that having retired triumphantly from cricket in April 1992, Imran Khan devoted his energies to building the Cancer Hospital in Pakistan which is privately funded and provides free treatment to 90 per cent of patients. He called it a model for the Third World where free treatment is not easily available. He mentioned the bomb blast in the hospital which nearly killed Imran Khan. "Will such a man battle in court", asked Carman. He said Imran was prepared to write to The Times and had made an offer to the plaintiffs on July 12, 1994. He also referred to a letter he had written to Ian Botham, David Gower, and other on May 16, 1994 regretting that his biography by Ivo Tennant did not reflect his views, and he was offering regrets for any misconceptions caused by the book. Carman told the court hat while David Gower replied to this "kind and pleasant" letter Botham did not. "Why was not reply sent to Imran Khan's letter"? he asked. In June of the same year Evening Standard, a London paper, and Independent had quoted parts of an interview Imran Khan had given to India Today, concentrating on the class question. Imran, said Carman, chose to write to Ian Botham and Allan Lamb on June 16, 1994. He said he was misquoted and did not suggest that he considered any of the plaintiffs under class. This letter also remained unreplied. "What was the reason behind the failure by Ian Botham and Allan Lamb to reply to a perfect and kind letter", he asked the jury to think about. Instead the two plaintiffs, through their solicitors, wrote to say that they reserved the right to legal proceedings and damages. In his by now much cited letter of July 12, 1994 Imran Khan, argued his lawyer, had said that he had been seriously misquoted in India Today. He never suggested that the plaintiffs were assists. He offered the "golden opportunity" to put the record straight in The Times. Did they want the record to be put straight or not?. They could have buried the allegation for ever two years ago, Carman added. He emphasised that out of all the bowlers of the world only Ian Botham came to sue Imran Khan even though his client had not directly accused Ian of cheating or of racism. He was making an offer which, if accepted by the plaintiffs, would have buried the matter for good. Why was it not accepted? Why was the golden opportunity to put the record straight turned down? asked Carman. He said Ian Botham in his evidence called the offer a "smokescreen". Elementary checks: Allan Lamb says he was called a racist but why didn't the plaintiffs in the last two years make "the elementary check of all" to contact the India Today magazine. An "honest and respectable approach" would have been to sue the magazine but this was not done, said Carman. The plaintiffs without any shred of evidence rejected Imran Khan's offer, without finding out what India Today had published. In June 1994, the Sun published an interview with Allan Lamb with the headline that Imran had thought Pakistani cricketers how to cheat. Allan Lamb denies any responsibility for the headline. But Carman said the truth is there for the jury to find. There was vitriol poured on Pakistan and Imran Khan in the British tabloid Press. Imran Khan was pilbried by two former England cricketers in the Sun and the Mirror. Was he not entitled to a reply?, asked the defence counsel. Here he gave the reasons for the failure of reconciliation attempts because, in his view, the knives were out. Ian Botham and Allan Lamb were not prepared to join and take the olive branch of friendship. Going into the history of Ian Botham's two other libels one of them against the News of the World and the other against the Mail on Sunday, Carman pointed out that he was accused of drug taking and sex. Ian Botham settled them and admitted that he had smoked pot while on tour in New Zealand. The actions were not pursued and he also admitted to have lied. The defence counsel was addressing the jury about a review of Botham's autobiography Imran wrote in the Sunday Times when the court rose for the day Carman was saying that there was no malice in the review as Imran had discussed what Botham had himself admitted in the book that he had marital problems and that he had badly treated his wife, Kathy. As the hearing began this morning some points of law were argued by the two counsels, the jury having been kept out. For the purposes of any damages to be awarded the jury, when members returned to the court, were told that India Today sells between 4 to 5,000 copies in the UK. The Jury also heard the plaintiffs' wives, not cross-examined by Carman, give evidence to say how distressed their husbands were after knowing about the allegations made against them by the defendant. In his evidence lasting well over an hour, David Gower said that Botham was not a bitter man but was somebody who had achieved quite a lot on the cricket field. He was being questioned by Charles Gray, counsel for the two plaintiffs. Allan Lamb, a friend of his, he said, also had a lot of cricket left in him when he was dropped from the England side. David Gower said he has not even now read the India Today article, which is at the core of the libel. But he told Gray that he wouldn't agree that Botham and Lamb said what they did about balltampering because of racist motives. Botham, in his view, was top of the list as a bowler in his time, "a leading all round player". If he was asked to name three top England bowlers he would include Botham in the list, said Gower. TOP LIST: The counsel then drew Gower's attention to an interview in the Sun in which Imran Khan was quoted as saying that some of the big names in cricket cannot be said not to have indulged in ball-tampering some time or the other. When asked if he would include Botham in the top list, Gower said it would be difficult not to include Ian Botham and Bob Willis. The witness was shown a clip, shown several times before in the court, from the 1982 Lord's Test between England and Pakistan and was asked to say what was Botham doing with the ball in the sequence. Gower recalled that the ball had gone out of shape and Ian was trying to put it back into shape. He did not think this amounted to any breach of the rules. "I haven't seen Botham do anything contrary to rules of cricket." In his view gouging the ball or scratching it was unfair and amounted to cheating. In his cross-examination Carman, for the defence, wanted to know what Gower thought of the tendency in the tabloid Press to make inflammatory remarks about others. He gave the example of Euro 96 in which the German football team was made a target. Gower said he would be against the strength of their comments on such occasions. About the Pakistan cricket side he said it had its ups and downs but they did beat England in 1992. Violent remarks: Carman asked that a certain section of the Press made violent remarks about Pakistan. Gower replied that it was up to the readers to decide what they thought of them but he would certainly condemn such attacks. He described Imran Khan as a highly respected cricketer and a decent man in his experience. Carman then asked about the letter that Imran wrote to him on May 16, 1994, in which the defendant told him that certain remarks attributed to him in the Iov Tennant biography had been taken out of context and did not portray the defendant's views. Gower told the court that he wrote back on May 24 asking Imran not to worry and that he felt no hurt. Gower was next asked about the evidence given on Monday by Bob Taylor, the former England wicketkeeper, who had said that lifting of the seam was a habitual practice with bowlers and had become part of the game, although it is illegal. It has gone on, he had said. Gower replied: "It does happen but whether it is habitual practice is a matter of debate". He agreed that with some bowlers it is common practice but is not widespread. His attention was drawn to opinions expressed by several cricket writers, including Geoff Boycott and Christopher Martin-Jenkins, as well as the present England captain, Mike Atherton, who say that picking the seam is something that goes on. Mike Atherton in his book says that there is nothing new in players altering the condition of the ball by picking the seam. He also talks about the application of substances such as sun cream, lip salve and hair oil to the ball to achieve extra swing. The England captain advocates changing the law to allow an action players practise tacitly to be accepted as part and parcel of the game. Gower agreed that bowlers have been tempted to do all the things mentioned in the court but it is all done surreptitiously. "It is not condoned but it is accepted", he added. Gower admitted that some of the rules were complicated giving rise to problems.

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