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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 06 December 1997 Issue : 03/49 -------------------------------------------------------------------

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, not exceeding 50 lines, 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-owner@dawn.com WWW http://dawn.com/ fax +92(21) 568-3188 & 568-3801 mail Pakistan Herald Publications (Pvt.) Limited DAWN Group of Newspapers Haroon House, Karachi 74200, Pakistan Please send all Editorials and Letters to the Editor at letters@dawn.com Make sure you include your full name, complete address and, if in Pakistan, your daytime telephone number. TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL ADDRESS! (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS ******************************************************************** *****DAWN - the Internet Edition ** DAWN - the Internet Edition***** ******************************************************************** Read DAWN - the Internet Edition on the WWW ! http://dawn.com DAWN - the Internet Edition is published daily and is available on the Web by noon GMT. Check us out !

CONTENTS

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NATIONAL NEWS

Leghari caused present crisis, says Nawaz Sajjad cancels full court orders Cabinet decides to impeach president Judges stick to their guns, two cause-lists issued Sajjad suspends 13th Amendment 10-member bench overturns suspension Ajmal Mian forms benches PM blamed for crisis Wasim takes over as acting president PPP's dilemma on president's exit Ajmal Mian sworn in as acting CJ SC bench issues notice to Sajjad Sajjad to contest case, SC told Benazir, Asif stopped from operating accounts abroad Presidential election on Dec. 31 LHC restores NTM contract PM's daughter files discrimination plea Opposition and treasury benches trade accusations in Senate Asif Zardari's trial to be held in Karachi prison ---------------------------------

BUSINESS & ECONOMY

Country suffered Rs75bn loss due to crisis, PM told Negotiations to sell 50pc KESC shares to Daewoo Pakistan's external financing needs touch $24.3bn mark Pressure to raise WAPDA's power charges Dumping duty of 6.4pc imposed Reserves fall by $300m in 2 weeks KSE index falls 11 points on Moody's rating rumors ---------------------------------------

EDITORIALS & FEATURES

Refutation and assertion By Ardeshir Cowasjee The fatal flaw Irfan Husain The siege from within After the dark night -----------

SPORTS

Chanderpaul, Campbell lift Windies to 303 in 2nd Test Pakistan down WI by record margin Eyles survives scare, Zubair crashes out Jansher Khan surges into quarter-finals Jansher bamboozles Ryan, Eyles falls to Chaloner Jansher edges out Power to enter Mahindra final

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NATIONAL NEWS

971201 ------------------------------------------------------------------- Leghari caused present crisis, says Nawaz ------------------------------------------------------------------- Bureau report ISLAMABAD, Nov. 30: Prime Minister Nawaz Sharif blamed President Farooq Leghari for the political crisis and said the presidency could have averted the deadlock, but did nothing to save the parliament and the constitution. In a 26-minute address to the nation over radio and television, the prime minister vowed to face "every difficulty for the sake of national interest", the prime minister said he had not been voted to power to contest cases in courts, but to work for rehabilitating the economy. The prime minister said the nation was witness to the "process of tearing the Constitution apart during the past few weeks." He mentioned that the president had signed 300 ordinances sent by the Benazir government to him, but refused to sign into law the Contempt of Court amendment bill. Both houses of parliament had approved this bill. He was of the view that the government-judiciary row followed the passage of the anti-terrorism law in August as the question of judges appointment had not surfaced till the end of July. He said after Oct. 29, when certain legal matters began to push the country towards a crisis and the supremacy of the constitution was challenged, it became imperative on him to explain to the nation the causes behind the crisis. He said no authority except for the parliament was empowered to change the Constitution. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971201 ------------------------------------------------------------------- Sajjad cancels full court orders ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Nov. 30: Chief Justice Sajjad Ali Shah "cancelled" the administrative order of Justice Saiduzzaman Siddiqui constituting a full court of 15 judges, and asked judges to follow the roaster issued by him. In a seven-page administrative order, the chief justice said: "I, as chief justice acting within my powers, cancel the administrative order passed by Mr. Justice Saiduzzaman Siddiqui constituting the Full Court of 15 judges to hear the petitions". Justice Saiduzzaman Siddiqui refused to receive the administrative order issued by Justice Sajjad Ali Shah on the ground that it amounted to "interference with the judicial process sub judice before the Full Court and fixed for hearing." He , however, directed the court Registrar to place "any statement intended to be filed by Justice Sajjad Ali Shah" before the Full court at the time of hearing. Justice Siddiqui said if any statement was placed before the full court, it would be considered by the court and disposed of on merit and in accordance with the law. The chief justice in his administrative order, said the only way to save the Supreme Court from damage and erosion was to accept his order. He said attempts were being made to divide the judiciary and "events show that it has been done with a substantial amount of success." He said he was surprised to note that an administrative order was passed by Justice Saiduzzaman Siddiqui constituting full court for hearing of constitutional petitions which involved questions about the validity of his appointment as chief justice. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971202 ------------------------------------------------------------------- Cabinet decides to impeach president ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 1: The federal cabinet, decided in principle to impeach President Farooq Leghari. The cabinet also discussed the role of the president in the recent crisis and the intra-Supreme Court differences. The members were of the view that the judiciary should sort out its differences on its own. The meeting presided over by Prime Minister Nawaz Sharif discussed ways and means to break the deadlock. Informed sources said the cabinet members were of the view that the crisis was far from over and that it might take another week for things to settle down. The sources said that the prime minister made it clear that nobody should expect him to step down as had happened in 1993. He said had it been his fault, he would have lost the support of legislators, specially of those belonging to MQM, ANP, JDP and the independents. One of the cabinet members proposed that parliament should adopt a resolution reconstituting the Supreme Court. But, he was told that the government did not want to adopt any measure which could create constitutional or legal problems for the government. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971202 ------------------------------------------------------------------- Judges stick to their guns, two cause-lists issued ------------------------------------------------------------------- By Rafaqat Ali ISLAMABAD, Dec. 1: All efforts to resolve the judicial crisis failed as both the judges' groups stuck to their stance and issued separate cause lists for Tuesday. On Monday morning when all arrangements were complete for both the benches to sit, a representative delegation of the Bar requested both the groups to settle their differences out of court. The request was accepted and all the 17 judges held closed- door discussions to resolve the crisis. The dissident judges, who do not acknowledge Chief Justice Sajjad Ali Shah as chief justice, issued a fresh cause list for 15 members' full court session. The full court, headed by Justice Saiduzzaman Siddiqui, will take up petitions questioning the validity of chief justice's appointment. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- Sajjad suspends 13th Amendment ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Dec. 2: The infamous Article 58(2)(b) of the Constitution was restored and suspended within minutes by two separate benches of the apex court assembled against each other. A three-member bench headed by Chief Justice Sajjad Ali Shah suspended the operation of the 13th Amendment restoring the powers of the president to dissolve the National Assembly, a verdict which was within minutes set aside by another 10-member bench. The 10-member bench headed by Saiduzzaman Siddiqui granted stay against the chief justice's order minutes after it was passed, even without receiving any formal petition or the copy of the order. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- 10-member bench overturns suspension ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, Dec 2: A 10-member bench, headed by Justice Saiduzzaman Siddiqui, held in abeyance an order suspending the 13th Amendment, passed by a three-member bench headed by Justice Sajjad Ali Shah. When the bench, headed by Justice Saiduzzaman Siddiqui, was hearing petitions challenging the validity of Justice Sajjad Ali Shah's appointment as Chief Justice, the court was informed by the attorney-general at 10.55am that a three-member bench, headed by Justice Sajjad Ali Shah, had restored the president's power to dissolve the National Assembly. The 10-member bench immediately passed an order suspending the decision of the three-member bench. The 10-member bench consisted of Justice Saiduzzaman Siddiqui, Justice Fazal Ilahi Khan, Justice Irshad Hasan Khan, Justice Raja Afrasiab Khan, Justice Nasir Aslam Zahid, Justice Munawar Ahmed Mirza, Justice Khalil-ur- Rehman Khan, Justice Shaikh Riaz Ahmad and Justice Abdur Rehman Khan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- Ajmal Mian forms benches ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Dec. 2: Justice Ajmal Mian, the senior most judge of the Supreme Court, would take oath as Acting Chief Justice of Pakistan, the Supreme Court office announced. Justice Ajmal Mian, who took administrative control of the apex court after a judicial order passed by a 10-member bench. The 10- member bench directed Justice Ajmal Mian to discharge administrative as well as judicial functions of chief justice of the Supreme Court, including the constitution of benches as the appointment of Acting Chief Justice would take some time. The court also directed the office not to take any further orders for constituting benches from the chief justice(under restraint) and orders regarding day-to-day working and administration of the court should be obtained from Justice Ajmal Mian till the appointment of Acting Chief Justice. After this order by the 10-member bench, Justice Ajmal Mian took administrative control of the Supreme Court and fixed a new roaster and issued a new cause-list. Justice Ajmal Mian constituted six benches including the 10- member bench which will continue hearing of the petitions challenging the appointment of Justice Sajjad Ali Shah as Chief Justice of Pakistan. The 10-member bench will also take up the petition challenging the 13th Amendment on Wednesday. After the conclusion of two cases, five new benches will start work. The bench No 1 will consist of Justice Ajmal Mian, Justice Mohammad Bashir Jehangiri, Justice Nasir Aslam Zahid, Justice Khalil-ur- Rehman Khan, Justice Chaudhry Mohammad Arif. The bench No 2 will consist of Justice Sajjad Ali Shah, Justice Munawar Ahmad Mirza, Justice Shaikh Riaz Ahmed. The bench No 3 will consist of Justice Saiduzzaman Siddiqui, Justice Mamoon Kazi and Justice Abdur Rehman Khan. The bench No 4 will consist of Justice Fazal Ilahi Khan, Justice Raja Afrasiab Khan and Justice Munir A.Shaikh. The bench No 5 will consist of Justice Irshad Hasan Khan, Justice Mukhtar Ahmed Junejo and Justice Shaikh Ijaz Nisar. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- PM blamed for crisis ------------------------------------------------------------------- By Ihtashamul Haque ISLAMABAD, Dec. 2: President Farooq Leghari tendered his resignation saying he could not violate the Constitution and the law to oblige the government. Speaking at a press conference Mr. Leghari said he had opted to resign because he did not want to become a party to the violation of law and the Constitution. He said he had received a summary from the government asking him to de-notify the appointment of Chief Justice Sajjad Ali Shah and appoint Justice Ajmal Mian as the acting chief justice of Pakistan. Farooq Leghari said he could have dissolved the National Assembly after the Supreme Court restored his powers under 58(2)(b) of the Constitution, "but I never wanted to use this provision in his life any more and all I wanted was to uphold the supremacy of law". He accused Prime Minister Nawaz Sharif of trying to grab all powers to become a `dictator'. " The Constitution cannot be preserved if the prime minister continues to violate the law", he said adding it was likely that the provinces would refuse to accept the authority of the federation. The prime minister, Mr. Leghari alleged, wanted to subjugate the judiciary and had no respect for the rule of law. Mr. Leghari alleged that both Benazir Bhutto and Nawaz Sharif as prime ministers wanted absolute power by subjugating the judiciary. They did so because they always felt insecure. Leghari said he had to encounter difficult situation thrice as a president but every time he upheld the rule of law. The first occasion, he recalled, was when on 20th March, 1996, he had advised the PPP government to implement the decision of the Supreme Court. "The second time I faced a difficult situation when I did not accept the advice of many people to hold accountability and postpone general elections after Benazir's removal. And this is the third time when I have decided to resign only to uphold the supremacy of law", he added. The present crisis, Mr. Leghari continued, cropped up three months back when the prime minister decided to confront the judiciary. "I told the prime minister that Benazir Bhutto had to go because of her confrontation with the judiciary but he did not listen to me", he said adding that he had told Mr. Sharif that the confrontation was detrimental to the system. "Although I did not endorse the Anti-terrorism Act, I signed it only to avoid differences, despite the fact that the chief justice of Pakistan had serious reservations about it." He said that the crisis turned serious when the prime minister refused to honour an agreement he had made with the chief justice. He accused the government of masterminding, what he said, a mini- revolt against the chief justice when he had gone for Umra. He also accused the ruling party of mounting attack on the Supreme Court building through his workers and legislators. He accused the prime minister of creating the crisis by not adhering to the Constitution and the rule of law. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- Wasim takes over as acting president ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Dec. 2 : Wasim Sajjad, chairman, Senate, assumed office of the acting president after the resignation of President Farooq Ahmed Khan Leghari. He is likely to remain acting president till the election of the new president. Under the Constitution, on the occurrence of a vacancy in the office of the president, the chairman of the Senate acts as the president. The new president shall have to be elected not later than 30 days' period. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- PPP's dilemma on president's exit ------------------------------------------------------------------- Staff Reporter LAHORE, Dec. 2: Key Pakistan People's Party leaders appeared to be in a state of dilemma when reacting to the resignation of Sardar Farooq Leghari as the president. They were satisfied that the federal parliamentary system had been saved from a complete disaster, yet they feared that Prime Minister Nawaz Sharif would deem this new development as his personal victory and emerge so strong as to enforce `one-man fascist rule' in the country. PPP chairperson Benazir Bhutto has been strongly pleading for `a national government' through an in-house change. The PPP Secretary- General said the track record of Mr. Sharif on paying respect to institutions was not good "as and when he has been in power, he has always come in head-on confrontation with the state institutions. Now when he has emerged stronger than before, our party hopes that absolute power will not corrupt him," he said. Senator Iqbal Haider was, however, not fully satisfied with the development taking place. He pleaded that "Nawaz Sharif should also have stepped down on his own to create a situation in which all the characters of the foul play were removed and a fresh start to restore a true democratic order was taken." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971204 ------------------------------------------------------------------- Ajmal Mian sworn in as acting CJ ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Dec. 3: Justice Ajmal Mian, the senior-most judge, was sworn in as acting chief justice of Pakistan. Justice Saiduzzaman Siddiqui administered the oath. The ceremony was attended by governors of all the four provinces, three chief ministers, two federal ministers, judges of the Supreme Court, Federal Shariat Court, high courts, retired judges of the Supreme Court, the attorney-general and senior lawyers of the apex court. Justice Ajmal Mian, if appointed permanent chief justice of Pakistan, will continue in that capacity till June 30, 1999. He was one of three judges who were superseded by Justice Sajjad Ali Shah in 1994. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971204 ------------------------------------------------------------------- SC bench issues notice to Sajjad ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, Dec. 3: The 10-member bench of the Supreme Court, headed by Justice Saiduzzaman Siddiqui, issued notice to Justice Sajjad Ali Shah in the constitutional petitions challenging the validity of his appointment as chief justice. The notice was served on Justice Sajjad Ali at Islamabad airport, asking him to give his point of view on Thursday. The chief justice (under restraint), however, asked the court official who had brought the notice to send it to him by post. The 10-member bench turned down the request by the petitioner, Malik Assad Ali, for referring the case of Justice Sajjad Ali to the Supreme Judicial Council. The petitioner contended that Justice Sajjad Ali was guilty of misconduct as he had willfully violated the orders passed by the Quetta and Peshawar benches of the Supreme Court, and his case should be referred to the Judicial Council. The court said if the petitioner had any material with him he could send a reference to the president. The petitioner was told that unless the president refused to move the council, the court could not consider this request. Aslam Chishti, counsel for the petitioner, argued that the petition was in the nature of extension of the Al Jehad Case. He said the principle of legitimate expectancy for the senior judge in high court to be elevated as the chief justice of the court was applicable to the supreme court as well. He said the issue was left open in the 20th March judgment for many reasons including that a petition on the subject was pending in the PHC. He further argued that the appointment of Justice Sajjad Ali Shah as CJ was the first violation of rule of seniority in the judicial history. At this point Justice Khalilur Rehman pointed out that Justice Aslam Riaz of the Lahore High Court was appointed chief justice in violation of the rule of seniority. Justice Shaikh Riaz Ahmed observed that two senior judges of the court had given in writing to forgo their seniority. The court will hear a petition by Nihal Hashmi on Thursday. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- Sajjad to contest case, SC told ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Dec. 5: Justice Sajjad Ali Shah, chief justice of Pakistan informed the 10-member bench that he would contest the case, and engaged Abdul Hafeez Pirzada, a prominent lawyer, to represent him. Mr. Pirzada later told reporters he would demand hearing by full court, comprising all the judges. He said he might also challenge the appearance of Sharifuddin Pirzada as amicus curiae because he had been engaged by the government in the 14th Amendment case. Mr. Pirzada told the press that he would be arguing how a writ of prevention could be issued prior to the writ of quo warrant. The court adjourned the hearing of the case till Wednesday. Justice Sajjad Ali Shah is likely to appear in person in the court on the next date of hearing. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- Benazir, Asif stopped from operating accounts abroad ------------------------------------------------------------------- Staff Reporter LAHORE, Dec. 5: The Lahore High Court has restrained the PPP chairperson and leader of the opposition, Benazir Bhutto, her jailed husband Asif Ali Zardari and mother Begum Nusrat Bhutto from operating their foreign accounts `anywhere in the world.' According to petitioner-lawyer Barrister Javed Iqbal Geoffrey, the bar applies to their representatives, agents and surrogates. The order was passed by Justice Ihsanul Haq Chaudhry on a writ petition alleging the violation of the Foreign Exchange Regulation Act, which was repealed in 1992. The defunct law prohibited the acquisition and transfer of foreign currency or exchange abroad without the permission of the State Bank of Pakistan. Prior to the repeal of the law in 1992, the petitioner alleged, the former PM, her spouse and her mother had transferred huge amounts to foreign banks, particularly those of Switzerland. The money was illegally amassed. Most of it was received in kickbacks, he alleged. The petitioner submitted that the Swiss government had ordered the country's banks to freeze the accounts of the three PPP leaders but the freeze order was due to expire on Dec. 8. The bank deposits might be withdrawn by the account-holders or their representatives after that date. A Pakistan court order was, therefore, essential to protect the deposits. Appearing on court notice, DAG Khwaja Saeeduz Zafar submitted that a Pakistan court could not bind foreign banks by its order. It could only restrain the Pakistan citizens and proceed against them in Pakistan should they violate the restraint order. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- Presidential election on Dec. 31 ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Dec. 5: The Acting Chief Election Commissioner, Justice Mukhtar Ahmed Junejo, announced that election for new president would be held on Dec. 31. According to an Election Commission press release, polling will be held from 10am to 3pm. Nomination papers will be received by the returning officer and presiding officers at Islamabad, Lahore, Karachi, Peshawar and Quetta on Dec. 16 up to 12 noon. Scrutiny of nomination papers will take place in Islamabad on Dec. 18 at 10am. Candidature can be withdrawn up to 12 noon, Dec. 20, while the schedule for the publication of list of validly nominated candidates is 1pm, Dec. 20. The acting CEC will be the presiding officer at parliament house while Justice Rashid Aziz Khan, Chief Justice, Lahore High Court, will act as the presiding officer in the Punjab Assembly, Lahore and Justice Wajihuddin Ahmed, Chief Justice of the Sindh High Court will act as the presiding officer in Sindh Assembly, Karachi. Similarly Justice Mehbub Ali Khan, Chief Justice of the Peshawar High Court and Justice Amir-ul-Mulk Mengal, Chief Justice, of the Balochistan High Court will act as presiding officers at the NWFP Assembly, Peshawar, and Balochistan Assembly, Quetta, respectively. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- LHC restores NTM contract ------------------------------------------------------------------- Shujaat Ali Khan LAHORE, Dec. 5: The Lahore High Court has upheld the NTM's petition against arbitrary termination of its contract by the STN without prior notice or hearing. The petition was moved by NTM Director Nisar Ahmad Rao through Advocate Ali Sibtain Fazli. Setting up a rival claim to the company's management, Faisal Sherjan sought to join the proceedings through advocates Aitzaz Ahsan and Naeem Sahgal. The Shalimar Recording and Broadcasting Company or STN was represented by advocates Hamid Khan and Javed Khwaja. Deputy Attorney-General Khwaja Saeeduz Zafar appeared for the federal government. In a 14-page landmark judgment, Justice Karamat Nazir Bhandari held that the high court can enforce contractual obligations in exercise of its writ jurisdiction in cases of violation of the norms of natural justice. "The power of judicial review can be exercised in favour of the aggrieved party where the impugned termination of a contract or its breach has taken place in violation of the principles of natural justice like absence of notice or where the termination is arbitrary, fanciful and unconscionable or repugnant to the conscience of the court," observed the judge. The judgment cited the PTV and UBL cases to declare that the government-controlled limited companies were amenable to the writ jurisdiction of the high court. Referring to the 1994 Supreme Court judgment in the Anisa Rahman case, Justice Karamat Nazir Bhandari observed that though the petitioner employee was held not governed by statutory rules and subject to the master-servant relationship, the apex court ruled that she could not be demoted without being heard. The judgment does not bar the STN from proceeding against the NTM in accordance with the law and the principles of natural justice. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971204 ------------------------------------------------------------------- PM's daughter files discrimination plea ------------------------------------------------------------------- Staff Reporter LAHORE, Dec. 3: The Lahore High Court has admitted a writ petition challenging `discrimination' against unlisted companies in the matter of computation of the value of their shares for the purpose of calculating wealth tax liability of their directors and members. The petitioner, Maryam Nawaz Safdar, said she was a director of or shareholder in many limited companies of the Sharif family and the Ittefaq Group, including the Ittefaq Foundries, Kulsoom Nawaz Textile Mills and the Hudabia Paper Mills, which are not listed on the stock exchange. While calculating her wealth tax liability under Rule 8(2) CI of the Wealth Tax Rules, 1963, the Income Tax Department took into account the face value of her shares as well as their market value and calculated the tax on whichever was higher. By contrast, the shares of companies listed on the stock exchange, were taxed in accordance with the lower value. If the market value was higher, the tax was levied on face value and vice versa. Arguing the petition, Advocate Tariq Aziz submitted before Justice Malik Muhammad Qayyum that the rule was discriminatory and violative not only of the parent law, the Wealth Tax Act of 1963, but also of Articles 4, 18, 24, 25, 141 and 142 of the Constitution. Admitting the petition for regular hearing, Justice Qayyum restrained the Income Tax Department from recovering the wealth tax from the petitioner on the basis of the impugned rule pending its disposal. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971205 ------------------------------------------------------------------- Opposition and treasury benches trade accusations in Senate ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Dec. 4: The Senate echoed with accusations and counter accusations in a verbal duel between the treasury benches and the opposition Senators when Senator Iqbal Haider raised the issue of damage and colossal losses running in millions of rupees during the recent judicio-political crisis. After Senator Iqbal Haider raised the point of order, several members from both the sides stood up shouting at one another. Senator Haider said that in the course of the crisis millions of rupees were spent. Finance Minister Sartaj Aziz rebutted the Senator and denied the charges. He said the economy had picked up and there was increase of 1.3 billion dollars in foreign reserves. He spoke of steady growth in the industrial sector, and said the prime minister's economic team was due to meet tomorrow to take up steps for the revival of the economy. Minister for Parliamentary Affairs Yasin Wattoo rebutted the charges leveled by opposition Senator Haider. He said his government had taken steps to enhance the prestige of the superior judiciary. At this, there was an instantaneous laughter in the House from the opposition benches. There was a cacophony and the minister's voice was rendered inaudible. Shouting at the top of his voice, Mr. Wattoo beseeched the opposition to adopt the parliamentary way and let him make his point of view. He said the National Assembly had passed resolution expressing solidarity with the superior judiciary. Mr. Wattoo said the prime minister himself had appeared twice before the Supreme Court and ordered registration of cases against raising slogans in the SC premises. He said the PML government had registered an FIR and made two arrests in connection with the incidents around the SC premises. The government had acceded to the verdicts of the superior judiciary, he added. Senator Raza Rabbani said the sanctity the government accorded to the superior judiciary was evident from the attitude the government ministers and parliamentarians had adopted towards the superior judiciary. He said the ministers and parliamentarians belonging to the treasury benches led the mobs attacking the Supreme Court. In the 50-year history of the subcontinent such incident had never taken place, he said. Some Senators belonging to the treasury benches shouted that according to a newspaper report, the PPP workers were involved in the attack on the Supreme Court building. The PPP Senators countered the remark that the PML ministers and parliamentarians led the mobs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971205 ------------------------------------------------------------------- Asif Zardari's trial to be held in Karachi prison ------------------------------------------------------------------- Staff Correspondent HYDERABAD, Dec. 4: Provincial home department has decided that proceedings against detained senator-elect, Asif Ali Zardari, in a double murder case would be held inside central prison Karachi. The decision was taken in the wake of a request in which the Karachi prison authorities had sought permission from the government to produce Mr. Zardari before the anti-terrorism court (ATC) Hyderabad, which was hearing the case. Earlier, the ATC headed by Judge Saleem Ahmed had issued a show cause notice to the superintendent, Karachi prison, for not complying with the court orders pertaining to Mr. Zardari's production on more than one occasion. The superintendent on his personal appearance brought it on record before the ATC that home department had restrained the jail authorities from producing Mr. Zardari before this court for security reasons and that in certain other cases against the accused the hearings were being held inside the jail. He told the court that he had sought guidance from the home department and was awaiting reply. The home department sources said that a notification had been sent to the ATC and that the judge would hold the proceedings at Karachi jail. The new date of the hearing is fixed for Dec. 12. Except for Asif Zardari, the ATC judge has already declared the rest of nine accused, including ex-MNA Hakim Ali Zardari, as proclaimed offenders. An application filed by Hakim Zardari's counsel, seeking withdrawal of the proclamation order, was pending disposal by the ATC. Asif Zardari and the other accused are facing charges in the murder of Alam Baloch, a former top bureaucrat in a federal department, and his guard, who were killed when two unidentified motorcyclists opened fire at their car here at Wadhuwah on Sept 18.

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BUSINESS & ECONOMY

971206 ------------------------------------------------------------------- Country suffered Rs75bn loss due to crisis, PM told ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 5: Prime Minister Nawaz Sharif, who chaired a high level meeting to discuss the prevailing state of the economy, was told that the country suffered a massive loss of Rs 75 billion due to the constitutional crisis. The prime minister was also told that the CBR will meet the revenue target of Rs 324 billion fixed for the current financial year. Sources said the prime minister took an exception to the media reports about revenue shortfalls and directed the authorities of the Central Board of Revenue (CBR) to achieve the target at all costs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971130 ------------------------------------------------------------------- Negotiations to sell 50pc KESC shares to Daewoo ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, Nov. 29: The government is negotiating a joint venture deal with South Korea's Daewoo Corporation to sell 50 percent of the shares of Karachi Electric Supply Corporation (KESC) and its management control for $36 million and that too without open bidding. While explaining the no-bidding option, the Privatization Commission in its letter to the Ministry of Water and Power dated November 19, 1997, has said that it would be advisable to consider the Daewoo proposal for KESC on sole source basis because of difficulties being faced in privatizing the corporation through competitive bidding, unbundling or using a mix of strategic sale and management contract approach. During the operation of this proposed joint venture, which will be for about 30 years, the company will be granted an exclusive right for power generation, transmission and distribution services in the existing electric territory of KESC. The company will also enjoy an exemption from corporate income tax for 5 years beginning from the year in which the company has first realized net profit and 50 percent reduction of such tax for the next 10 years, and exemption from all import duties and customs duties on equipment and machinery to be imported for the company. And Daewoo will also be the EPC (engineering, procurement and construction) contractor for any power plant, transmission line and distribution network which will be rehabilitated or newly invested, developed and constructed by the company. There will be no competitive bidding again and the approval of NEPRA for the terms of affiliated transactions will not be required. The government in the meantime will have to guarantee the exclusivity of its collaboration and will not enter into any kind of similar agreement with any third party for the privatization of KESC during the effective term of this MOU. The government will provide the company with the authority to purchase or import oil for power plants directly from seller. The Daewoo sent the draft memorandum of understanding (MOU) on November 12 to the government on the basis of the agreement reached at a meeting held between the prime minister and the executive managing director of Daewoo, GO Park, on November 8. The government responded to the draft MOU on November 13 and proposed some amendments in the document on the basis of which another meeting was held between the representatives of the government and Daewoo on November 17. The negotiations were then finalized on November 27 at Murree. According to the finalized MOU, Daewoo shall make a capital investment in the KESC through a joint venture arrangement. Daewoo and KESC will be the shareholders in the new joint venture company. KESC will contribute all its assets and liabilities to the company, which will be KESC's investment. Daewoo and KESC will each hold 50 per cent ownership interest in the company and the shareholders agreement will give Daewoo management control over the operation of the company. Daewoo will make a cash investment, the amount to be agreed, for its interest in the company, which shall not be less than the value of KESC's investments (asset and liabilities) but shall not be less than $36 million. The value of the KESC's investment in the company will be determined by an accounting firm of international repute approved by the parties and paid by Daewoo. Additional capital investment and loans shall be made by Daewoo into the company to support the capital expenditure necessary. All loans shall be arranged and guaranteed by Daewoo or if made directly by Daewoo shall be on terms acceptable to the government. The transaction will be on an "as is" basis without representation or warranty by the Government of Pakistan or KESC of any kind except that KESC will warrant that it is the lawful owner of the assets contributed by it. Daewoo shall be responsible for the day to day management and operation of company until the external loans and credits provided or arranged by Daewoo are repaid in full and/ or Daewoo recovers its equity interest in the company, on an agreed internal rate of return basis, but in no event shall the management control by Daewoo continue beyond the term of the shareholders agreement which is expected to be 30 years. Daewoo shall act as arranger or guarantor on or shall provide the company with additional equity and external loans and credits required for the rehabilitation, construction and installation of necessary equipment and facilities as well as for the operation of the company. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971201 ------------------------------------------------------------------- Pakistan's external financing needs touch $24.3bn mark ------------------------------------------------------------------- Ihtasham ul Haque PAKISTAN'S external financing requirements from 1997/98 to 1999/2000 are close to $24.3 billion for which it will have to seek expensive and inexpensive loans in addition to arranging project loans and grants. According to a latest study conducted by the Asian Development Bank Pakistan does not have any option but to seek long and short term loans amounting to $24.3 billion during the next year's period. The funding requirements would also have to be met by financing primarily the public sector investment program, trade credits, and medium and short-term commercial loans. The residual needs, estimated at $3.4 billion, are expected to be financed by IMF ($1.6 billion), the World Bank ($600 million), the Bank ($500 million), the export-import Bank of Japan (JEXIM) ($500 million) and OECF ($200 million). The Asian Development Bank's contribution comprises the proposed Capital Development Market Program (CMDP) policy loan ($250 million) and an envisaged trade and industry operation ($250 million) on which policy dialogue has been ongoing for the last few years. The study said that performance of the financial system has over the years been affected by: (i) repressive monetary policies due to the high reserve requirements maintained to finance the government's budgetary needs at subsidized rates, (ii) sector-wise and bank-wise quantitative credit controls, (iii) weak prudential standards for financial institutions, and (iv) regulated interest rates policy. The problems of the banking system were compounded in the 1990s because of growing imprudent lending under political pressures and weak management of financial institutions, which nurtured the culture of willful default. Over the last few years, the SBP has liberalized monetary policy by switching from direct to indirect controls with an emphasis on open market operations, reduced the scope of mandatory and concessional credit schemes and imposed greater discipline on the extension of credit to autonomous bodies and public enterprises. However, the budgetary overruns have continued to create pressures against a more effective use of indirect instruments of monetary control. "Rising fiscal pressures and inefficiencies in the process of financial intermediation have crowded out the investment needs of the private sector, and thus adversely affected industrial growth." Notwithstanding these developments, the securities market is relatively small and lacks the required liquidity and depth. The listed companies at KSE account for barely 2.6 per cent of the registered companies. Two companies, namely PTC and HUBCO, together represent 45.3 per cent of the KSE's market capitalization and over 60 per cent of share volume turnover. A large segment of the shares listed at KSE is held by the founding families or the government and a significant proportion of the shares of quality companies are almost permanently held by institutional investors. Furthermore, the number of shareholders is only 1.5 million (although it rose fivefold from 300,000 in 1990). The recent political and economic instability and the institutional constraints of the securities market have induced vulnerability in the KSE Index, which fell from a peak level of around 2,661 points in March 1994 to a record low of 1,332 points on 10 September 1996. Gradually, the KSE Index regained to 2,000 points in July 1997 in response to the economic policy package, resumption of IMF negotiations on ESAF and speculative trading in a few scrips. However, it fell to around 1,700 points to 1,900 points in the third quarter of 1997. The securities market has been affected by a number of constraints such as inadequate market infrastructure, lack of transparency and liquidity in the market and substantial time lag in clearing and settlement of transactions. Pakistan needs to address these constraints given the urgent requirement to stimulate investment and savings to achieve higher economic growth. The economic and political events in 1996 resulted in a slowdown in industrial investment and a decline in the Karachi Stock Exchange (KSE) Index to record lows in September 1996. To achieve macroeconomics stability and restore investor confidence, the government adopted a short-term stabilization package in October 1996, including revenue measures and expenditure controls to arrest growth in fiscal deficit and a rise in repo rate to curb monetary expansion. To restore the balance of payments (BOP) position, the government took steps to boost exports including a significant devaluation of the rupee and floating a debt retirement scheme to attract foreign currency deposits from non-resident Pakistanis. Simultaneously, several structural reforms were announced in 1997 including: (i) industrial and export revival policy packages which involved tariff rationalization, reduction in income tax rates, and lowering of sales tax; (ii) corporate governance reforms of banks and DFIs and privatization of the Habib Credit and Exchange Bank, Ltd; (iii) downsizing of the public sector at large; and (iv) improvement in the agriculture incentive framework by, among others, increasing the support price of major crops. Over the medium term, ESAF supports more fundamental tax reforms with emphasis on the broadening coverage of the general sales tax (GST) to importers, wholesalers, distributors and key sectors such as textiles and steel; and introduction of a turnover tax of 3 per cent on trades with the objective of eventually extending GST to retail levels. A lower and simplified rate structure for personal and corporate income taxes will be effective in June 1998 and steps will be taken to expand the definition of income and obligatory filing for certain categories of taxpayers. Tax rates for agriculture income tax will be harmonized and revised upwards in the provinces. The government further plans to rationalize public expenditures and launch wide-ranging reforms of public enterprises, civil service, and the financial and capital markets. "Pakistan's economy is in a vulnerable condition as growth in real gross domestic product (GDP) fell to 3.1 per cent in 1996/97 and fiscal and external imbalances reached unsustainable levels in 1996/97 resulting in an unprecedented decline in foreign exchange reserves to the equivalent of two weeks of imports in November 1996," the study said. The deep-rooted structural problems of the economy principally stem from imprudent management of public finances. This is largely caused by the stagnation of the revenue/GDP ratio and overspending. The fiscal pressures have several adverse consequences that resulted in a rise in: (i) external current account deficit to 6.4 per cent of GDP in 1996/97 - almost double the 1994-95 level; (ii) monetary pressures which compelled SBP to raise the repo rate by 3 percentage points to 20 per cent in 1996; and (iii) domestic non-bank borrowings which induced interest rate pressures on Treasury bills (T-bills) and national savings scheme (NSS). The repressive fiscal and financial policies have depressed the domestic savings rate and investment rate in Pakistan, which declined by 0.9 percentage points and 2.1 percentage points, respectively over the 1992/93 level. New Issues: The CLA repealed the Capital Issues (Continuance of Control) Act, 1947 to abolish controls on the price of new issues, and introduced the Companies (Issues of Capital) Rules, 1996 to encourage promoters' contribution, broaden public participation, and prevent premature projects from going to the public. A company is allowed to issue shares to the public at a premium provided the stock exchanges have vetted the due diligence report and the prospectus. A listed company is allowed to issue rights shares after one year of the last issue of share capital if the company provides adequate justification for its benefits and use. Provided there are reserves of the company are sufficient, the company can also issue bonus shares after retaining reserves equal to 25 per cent of the incremental capital. Debt Market: A major barrier to the development of the corporate debt market is the high and growing fiscal deficit, which forces the government to mobilize budgetary requirements. As of June 1995, the size of the debt market is estimated to be Rs 811 billion ($26.2 billion) or equivalent to 43 per cent of GDP. Over 98 per cent of this is government debt. Almost 27 per cent of the government debt is held in T-bills and Federal Investment Bonds (FIBs) which are eligible securities for the statutory liquidity reserve (SLR) requirement, and another 27 per cent mobilized directly from the public through National Savings Scheme (NSS) instruments. Barring banks and DFIs, the corporate sector and individuals can invest unlimited amounts in NSS and non-residents can hold investments in foreign currency, both of which offer competitive returns. Interest income on key NSS instruments are exempt from the withholding tax of 10 per cent but is subject to zakat, collected once at the time of actual encashment. The outstanding debt in NSS has risen from Rs 184 billion (12 per cent of GDP) in 1993/94 to Rs 313 billion (16 per cent of GDP in 1995/96.) DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971201 ------------------------------------------------------------------- Pressure to raise WAPDA's power charges ------------------------------------------------------------------- Sultan Ahmed WAPDA, the leviathan power monolith, is facing the most acute financial crisis in its history, and has the choice of an instant financial collapse or coming up with hefty tariff increases which will invite mass public agitation in these politically turbulent times. The donors of WAPDA, among whom the World Bank and the Asian Development Bank are pre-eminent, want it to come up with an effective action plan by December 15, and get the organization out of the financial woods positively by the middle of next year. They want the non-core assets of WAPDA to be sold off to wipe out the current liability of Rs 20.7 billion and use the remaining funds to develop the system. But because of various crises the government is facing, they think the immediate solution is raising power rates and doing away with varied subsidies, regional and domestic and project- specific. The prime minister, however is opposed to an increase in power rates as that will be extremely unpopular and add to the cost of production and exports and wants instead that WAPDA reduce its losses and theft of power which are now stated to exceed 30 percent. In fact action is not being taken on the government decision, already announced, that does away with tariff relief for FATA and Azad Kashmir and for tubewells in Balochistan which may save Rs 12-20 billion as variously estimated. In addition, the government would give Rs 7 billion as grant to WAPDA, which would raise Rs 3 billion more by enhancing metre rent, the Minister for Water and Power, Raja Nadir Pervaiz, had said a fortnight ago. But no action has followed. The Secretary of the Ministry of Power, Javed Burki, says WAPDA was losing Rs 5 billion yearly in tribal areas as no one was paying the bills and no one could be forced to pay. And the sardars of Balochistan who have been enjoying power at vastly concessional rate for tubewells will not be cooperative any more particularly when the government at the centre faces too many difficulties. The donors including World Bank President James Wolfensohn, who visited Pakistan recently, are firm that the sale of the assets of WAPDA goes through accelerated privatization and increase in energy charges also made to avert WAPDA's impeding financial collapse. While they do not want the large hydel power stations to be privatized in the immediate future, they want area electricity boards as in Lahore and Faisalabad, to be privatized and more of the shares of Kot Addu Power Station to be disinvested. They want WAPDA to appoint a financial adviser for early privatization of its identified segments before June 30 next year. The donors have also approved the move of WAPDA to come up with another bond issue. But, despite the attractive returns offered by it in recent years, public response to the bonds had been poor, and the public sector and other banks had to be virtually forced by the government to buy them. Following the disclosure of the impending financial collapse of WAPDA because of the varied abuses within it, public response to the new bonds will be poorer now. A series of factors have led to the acute financial crisis in WAPDA. Frequent devaluation of the rupee, rise in POL rates, increase in wages in an over-staffed organization and high interest costs are among them. Added to that is the need to pay cash to the independent private sector power producers who sell their power to WAPDA. As new power production units come on stream, this bill will keep on rising. While WAPDA is plagued by heavy theft of power and large transmission and distribution losses, it is not able to collect large dues from federal and provincial government organizations and autonomous bodies like water and drainage boards and influential persons, both officials and non-official. The donors want WAPDA to step up its recovery drive but it has not been able to achieve much success. It has to take a number of persons, including officials to court and seize their assets to achieve success in this area. So WAPDA has been left as an organization without options or elbow room, but it has yet to act if it wants continued financial assistance from major donors for mammoth projects like Ghazi Barotha. Meanwhile the government has come up with a new power policy. In fact, the draft of the policy has been circulated among the heads of major power companies to ascertain their views. And several of them do not seem to be in favour of some of the new proposals. And when it comes to privatization of various segments of WAPDA, it is meeting with serious resistance from the workers who are more interested in the illegal benefits they enjoy than their pay scales. The KESC, which has liabilities of Rs 25 billion, is said to have had a basic pay bill of Rs 284 million last year while the overtime payments were almost three times, Rs 760 billion. Add to that the greatly abused medical bills. So the annual general meeting of the shares-holders of KESC decided to set up an Ehtesab Committee in March last to oversee its functioning and check the vast and varied abuses. But the administration has not agreed to the proposal, much less moved towards setting up such a committee. Meanwhile power theft and loss in KESC is stated to have shot up from 32 per cent to 45 per cent, which means virtually half the power produced is lost or stolen with the connivance of the staff and more probably. The removal of hundreds of kundas announced each day appears to have become some kind of a game. They are removed one day and restored the next. And while the removal of the kundas is announced by KESC their restoration is not. Meanwhile there is to be a major policy shift in power production; with great focus now on hydel power. A new scheme proposes to set up 12 small and medium hydel power stations to produce 3,610 mw, but the cost will be $4,280 million. While hydel power means less aerial pollution and reduced import of oil for power production at a high cost, it also implies large areas coming under water and social unrest and resistance of agriculturists. The Institute of Engineers Pakistan says Pakistan has a potential for producing 40,000 MW of hydel power against the current 6,000 MW and the total output of private sector thermal plants of 4,000 MW by next year. Meanwhile Ghazi Barotha is making slow progress and may produce 1,450 MW by the year 2002 - five years from now - if everything goes well. The government meanwhile, wants to knock down the concessional rates for the lower domestic power consumers and that costs Rs 16 billion to WAPDA now, says Mr. Burki. There would be a tremendous uproar from the masses if that is done at a time when political uncertainties are very acute. The people instead would want the massive theft of power in collusion with the WAPDA staff to be stopped and the same to happen in KESC. But as many of the consumers are powerful and the unions are on their side, elimination of this cancer is making small headway. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971205 ------------------------------------------------------------------- Dumping duty of 6.4pc imposed ------------------------------------------------------------------- Parvaiz Ishfaq Rana KARACHI, Dec 4: The European Commission (EC) has officially announced the imposition of 6.4 percent anti-dumping duty on bed linen imports from Pakistan for a period of five years. The Commission has imposed definitive duty of 6.4 percent on exporters /manufacturers who cooperated during the process of investigation and 6.7 per cent on those who did not cooperate. This news dismayed Pakistani exporters who termed the EC's decision as extremely harsh and biased. This decision will have a very negative effect on the country's textile industry because this impact is going to be widespread affecting growers, spinners and the textile industry. The Commission is presently investigating the fabric case and it is being assumed that this will also be subjected to punitive duty. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971205 ------------------------------------------------------------------- Reserves fall by $300m in 2 weeks ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 4: The worst ever politico-judicial crisis that jolted Pakistan in the latter half of the last month caused a draw down of $300 million in the foreign exchange reserves of the country within two weeks. According to the State Bank of Pakistan, the total reserves fell to $1.321 billion on November 29 from $ 1.621 billion on November 15 showing a huge fall of $300 million in two weeks. On weekly basis, the reserves witnessed a relatively small decline of $85 million - from $1.406 billion on November 22 to $1.321 billion on November 29. During the November 22-29, the rupee lost more than 30 paisa to a dollar in the open market. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- KSE index falls 11 points on Moody's rating rumors ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 5: Strong rumors of downgrading of Pakistan's foreign debt credit rating by the Moody's Investment Services dominated the trading on the stock market on Friday. The index fell by 11 points, wiping out market capitalization by over Rs 3 billion, but barring Hub-Power and some others MNCs. The KSE 100-share index suffered a fresh setback of 10.77 points at 1,7879.35 as compared to 1,800.12 a day earlier, breaching the resistance level of 1,800 points. The market capitalization fell by another Rs 3.256 billion at Rs 541.704 billion as against the previous Rs 544.960 billion, reflecting the distinct weakness of heavily capitalized issue, notably Hub-Power, which again received massive battering. Bulk of the selling was confined to those pivotals which still ensure modest capital gains and most of them received heavy battering under the lead of Hub-Power. However, instances of strong selective buying were not lacking as some of the leading shares continued to inspire new buying on the strength of their higher interim profits. Lever Brothers rose by Rs 48.25 to Rs 1,373.45 on strong demand as 48,040 shares changed hands followed by Paramount Spinning, Pakistan Refinery and Dadabhoy Insurance, which rose by Rs 2 to Rs 4. Bata Pakistan, 13th ICP, Gulistan Spinning and Searle Pakistan, which rose by one rupee to Rs 1.05, were some other good gainers. Lakson Tobacco and Millat Tractors, which were quoted ex-dividend, were leading among the losers, falling by Rs 11.75 and Rs 7. In physical trading, Pakistan Oilfields and Shell Pakistan, which fell by Rs 6 to Rs 11, were leading. Packages also fell by Rs 11 and so did CPC Rafhan Maize, which suffered a decline of Rs 2. Trading volume fell to 38 million shares from the previous 51 million shares as losers held a fair lead over the gainers at 66 to 46, with 52 holding on to the last levels. The most active list was topped by Hub-Power, off 85 paisa on 21.028 million shares, followed by ICI Pakistan, lower 35 paisa on 9.664 million shares, ICP SEMF, up one rupee on 0.934 million shares, Sui Northern, easy 60 paisa on 0.822 million shares, and FFC-Jordan Fertilizer, lower 30 paisa on 0.797 million shares. Other actively traded shares were led by Dhan Fibre, unchanged on 0.683 million shares, Southern Electric, easy 10 paisa on 0.557 million shares, Japan Power, lower five paisa on 0.428 million shares, Fauji Fertilizer, off 20 paisa on 0.314 million shares, and Askari Bank, up 70 paisa on 0.541 million shares. DEFAULTING COMPANIES: Trading in this sector was dull as only Crescent Spinning came in for trading and was marked up by 50 paisa at Rs 6.75 on turnover of 9,500 shares. DIVIDEND: Grays of Cambridge, cash 200 per cent, Escort Investment Bank, nil, Universal Leasing, cash 10 percent, Zafara International, Pakistan Slag Cement, Huffaz Pipe, Ghani Glass and Hafiz Textiles, all nil. ------------------------------------------------------------------- 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). 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EDITORIALS & FEATURES

971130 ------------------------------------------------------------------- Refutation and assertion ------------------------------------------------------------------- By Ardeshir Cowasjee DAWN, November 25, 1997, under the headline "Presidency refutes allegations": "A spokesman for the presidency has said that Ardeshir Cowasjee has made frivolous and baseless allegations against the President in his column `The crowing losers' published in Dawn on Nov. 23... However, Mr. Cowasjee may be nursing grudges against the President for not acceding to his unfair demands concerning appointments in the Karachi Port Trust during the caretaker period (Nov. `96 to Feb. `97), the spokesman concluded." `Unfair demands', `appointments'? Reproduced hereunder in full, a letter faxed by me to President Farooq Ahmad Khan Leghari at the Aiwan-i-Sadar, Islamabad, on October 24, 1996, twelve days prior to the dismissal of the second Benazir government: "Dear Mr. President "Karachi Port Trust "Rear-Admiral Akbar Hussain Khan retired from the Pakistan Navy many years ago. He is noted for his shoe- shining abilities. He was Ayub Khan's ADC in the mid-60s, and later my friend Admiral Ahsan's Military Secretary when Ahsan was Governor of East Pakistan. "His career since the rebirth of democracy, 1988: "Benazir's first term - Chairman Port Qasim Authority. Acting Director-General of Ports & Shipping. Chairman, Karachi Port Trust, for a short time until Benazir's government was dismissed. "Then he was sacked. "When democracy was re-established in 1993: Re-employed as Chairman, Karachi Port Trust, in November 1994 for a term of two years. "He is ....[an] inefficient man who openly boasts that he is protected by Asif Zardari, by the corrupt in the Navy, and by Ahmad Sadiq of the PM's Secretariat. "He has destroyed the institution of the Karachi Port Trust. He has infiltrated it with corrupt party bully-boys. He ...[gives plots to the Trustees] in the Port Officers' Colony (Trustees are not officers). He also allots plots to the Secretaries of his Ministry (Communications). The difference between the bullying and selling of a KPT plot (i.e. the bribe) is Rs 5 million. "His term finishes early next month and he is desperately trying to have it extended. "My assessment: I have known and worked with as many as 16 chairmen of the KPT since 1944. Not one, repeat not one, has been anywhere near as ... destructive as Akbar Hussain Khan. "My recommendation: An extension of his term should not even be considered, and he should be hauled up and tried on the charge of corruption. "His replacement: When a bad man is removed, one always fears that there is an even chance that his successor will be worse. If either the PM's Secretariat or the Pakistan Navy is allowed to name a replacement, then for sure the man will be even more `amenable' than this present incumbent. I recommend as the next Chairman of the KPT Rear Admiral Wali Khan, who retires from the Navy in 1997. He was seconded to the KPT by Admiral Saeed Khan in 1993, nominating him as the Deputy Chairman. Saeed's intention was to groom him for the chairmanship when Vice-Admiral Ahmad Tasneem (at that time Chairman) retired. "Since the post of Deputy Chairman did not exist he was signed on as No. 2 with the designation General Manager-Operations. Tasneem left in 1994 and Akbar wangled his way in. "Wali Khan is honest, straightforward and efficient, has been working in the port for the last three years and is completely capable of heading the KPT. He has stood up to Akbar many a time and Akbar has made several efforts to have him shunted out of the KPT. "I can think of no better man. Please help. Good wishes." November 7, 1996, The Friday Times, my column, `An open letter to the President' was printed: "...Zardari and Fate decreed that Akbar, for services rendered during the first term, was rewarded at the end of 1994 with the lucrative plum of the Karachi Port Trust. Since then, the port and harbour have been raped and ravished... this present Chairman's two-year term expires early in November, and he has spent weeks at Islamabad canvassing for an extension. This he should not get. It is you who can save the Port, and you are considered to be strong enough to do so. Admiral Saeed Khan in 1993 sent serving Rear-Admiral Wali Khan to take over from Vice- Admiral Ahmed Tasneem when he retired, but Akbar Khan trumped him. Wali has been KPT's No. 2 and as General Manager (Operations) has worked here for three years. He is honest, straightforward, efficient (qualities presently frowned upon). He can rebuild the institution." The president's spokesman on another subject: "As for the allegations about the... reacquisition of 29,000 acres... the president's share was under 15,000 acres of mostly `ghair mumkin' and `banjar qadeem' land and not 29,000 acres as alleged. He, however, reiterated that the case of land surrendered in 1972 was under dispute with the government of Balochistan and later under litigation in the High Court. It was decided in favour of the petitioners by the Balochistan High Court on merit, the spokesman pointed out." F.P. Bureau Report: "Quetta, September 5, 1995: A Division Bench of the Balochistan High Court comprising Mr. Justice Amirul Mulk Mengal and Mr. Justice Javed Iqbal has reserved judgment on a constitutional petition of President Farooq Ahmad Khan Leghari and his 12 other relatives regarding the confiscation of their land under MLR 115 in Barkhan district of the Balochistan province. Both counsel of President Leghari and the Advocate- General of Balochistan completed their arguments Monday. Thereafter, the court announced that judgment had been reserved." APP report, The Nation, Islamabad September 12, 1995: "The President has extended the tenure of two Additional Judges of the Balochistan High Court, Justice Javed Iqbal and Justice Mir Mohammed Nawaz Marri, for a period of six months from the date their present term expires." Question: Why was the tenure of Justice Javed Iqbal extended? The spokesman continued: "Referring to the allegation about the sale of land in Dera Ghazi Khan, the spokesman said the matter was examined in depth by a high-powered judicial commission which in its report had exonerated the president..." Yes, but the examination and explanation have been found by many to be unsatisfactory and lacking in explanatory detail. Islamabad, 0900, November 29, 1997: However, all the above is a matter of the past. The president has a year to go in the Aiwan, and has now started to assert himself. He still has sufficient residual constitutional authority, and sufficient residual moral authority to redeem himself. He can yet raise himself from the footnotes of history. At 0200 hours on the morning of Thursday, November 27, Prime Minister Nawaz Sharif requested that the president receive him, together with Senate Chairman Wasim Sajjad, Speaker of the National Assembly Ilahi Bakhsh Soomro and Law Minister Khalid Anwer. The president assented, and he invited the Army Chief, General Jehangir Karamat, to join them. Nawaz Sharif presented a summary to the president and asked him to there and then issue a notification appointing Justice Ajmal Mian as Chief Justice of Pakistan. Leghari refused; he would contemplate, he would seek advice, he would consider. A shocked Nawaz was informed by Leghari that, if he felt strong enough, he could commence impeachment proceedings against him which he would resist with all the constitutional authority at his command. In the alternative, he would consider resigning, handing over his office to the Senate Chairman who, acting as the president, could sign the required notification should he choose to so do. The bullies backed off. It is worthy of record that MNA Nawab Mohammad Akbar Shahbaz Khan, Tumandar Bugti, and his six men in the Senate and the National Assembly, refused to sign Nawaz Sharif's motion for the impeachment of President Farooq Ahmad Khan, Tumandar Leghari. Before noon that same Thursday, November 27, PML fascists made political speeches in the court of the Chief Justice of Pakistan disrupting the hearing. On Friday, November 28, they resorted to raw fascism when they stormed the Supreme Court (there is proof enough). I was in the Chief Justice's court on both days and all I saw and heard seemed and sounded like a replay of events in Rome and Berlin in the 1930s. As of the morning of Saturday, November 29, Leghari's flag still flies atop the Aiwan, and Sajjad Ali Shah remains Chief Justice of Pakistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- The fatal flaw ------------------------------------------------------------------- Irfan Husain SO the deed is done, and for better or for worse, we now have the strongest prime minister in twenty years with virtually no check on his vast and sweeping powers. I would like to be proved wrong, but given the glimpses of Nawaz Sharif's personality and leadership style that have been revealed to us, we may all rue the result of the grueling endgame we have just been involved in. But in the short run, at least, we can heave a sigh of relief while putting euphoria on hold. The causes and course of the recent drama have been recounted and analyzed to death, so I will spare readers yet another account of who did what to whom and why. Suffice it to say that every contest has its winners and losers, but the smirks so visible on the faces of our parliamentarians contain as much relief as they do triumph. They retain their seats with more power than ever before, and have not been turfed out as they had feared, so they have good reason to celebrate. I am relieved for another reason. Apart from the fact that the whole pointless and deeply damaging confrontation is over, the army has stayed on the sidelines, and we do not have to go through the motions of yet another election. But every balance sheet has a debit column, and we have yet to assess the cost of a divided judiciary. There is now a precedent of the executive and/or the legislative causing a rift in the rank of judges if either or both pillars of the state are unhappy with a particular judgment or a particular chief justice. Sajjad Ali Shah may not have been the senior-most supreme court judge at the time of his elevation, but surely his peers were aware of this in 1994 when he took the oath as chief justice. And if we accept that he was not elevated lawfully, then what happens to all the orders he passed, including the one that authenticated Farooq Leghari's dismissal of Benazir Bhutto's government? In order to justify his take-over, Ayub Khan once declared that parliamentary democracy was "against the genius of our people." We all saw through his motive at once: he and his government were touting the "basic democracy" system, and were therefore rubbishing the concept of parliamentary rule at every opportunity. But with hindsight, it is possible to discern a kernel of truth in Ayub Khan's outrageous pronouncement. However, it is not the people of Pakistan who can't cope with parliamentary democracy, but its leaders. The concepts of checks and balances, tolerance for opposition and dissent, and the division of power between the various pillars of the state are too alien, too sophisticated for our politicians to grasp. With their feudal attitude, they consider it a personal insult if anybody disagrees with anything they say or do. It is unacceptable for our ruling elite's to be told they have to share power; they do so with the army reluctantly, and only because their own incompetence has given GHQ so much authority. This brings us to a thesis I had dwelt upon in an earlier column ("Our colonial heritage"; October 4, 1997). I do not normally quote from my writings, but my earlier piece has some relevance to the issue we are discussing today. Basically, I had suggested that after the departure of the British fifty years ago, we were steadily reverting to type: "...With the fading of our Western heritage from public memory, we are becoming what we were before the colonial interregnum: cruel, dishonest and lazy." Add intolerant and selfish to this list. Over the years, many people have voiced the opinion that the presidential system is more suitable to Pakistan's peculiar needs than the parliamentary form of government. Superficially, it would seem that the centralized authority enjoyed by the president of the United States is akin to what our politicians lust after. But as any student of American politics would immediately point out, occupants of the White House work under enormous constraints. Apart from coping with a Press that routinely exposes wrongdoing in high places, they have to deal with a Congress that is often dominated by the opposition. No system of government can function democratically until those in charge are tolerant of opposition and dissent. Equally, they have to accept the checks and balances built into constitutions to prevent and pre-empt the tyranny that can emerge as a result of concentration of power in one hand. If we apply these criteria to our polity, we find that no Pakistani leader of consequence can willingly live with these conditions. Basically, feudalism in Pakistan is more a state of mind than a socio-economic classification, and it infects virtually every aspect of our existence. A businessman here tends to be far more autocratic than, say, his American counterpart who, apart from worrying about his shareholders, also has to worry about litigation from his employees and the consumers of his products. A class teacher here tends to dominate students through threats and punishment without being concerned about school boards or lawsuits lodged by parents. Bureaucrats get away with murder because they dominate the system to an incredible extent. All these examples of the exercise of authority with virtually no checks indicate the extent to which feudalism is rooted in our culture. So even though we have a businessman as our prime minister, it does not necessarily follow that we are rid of feudalism at the top. He is as intolerant of dissent, and as determined to get his way (and to hell with the system!) as any of his feudal colleagues and predecessors. His approach to the exercise of power is no less arbitrary and capricious than any Bhutto's. When Nawaz Sharif talks about the supremacy of parliament, he is really talking about the supremacy of the prime minister. In mediaeval Europe, kings gradually grew accustomed - with considerable reluctance - to the concept of sharing power with the church. Furthermore, the landed aristocracy inherited their lands and were a real power in the realm. In Mughal India, religious authorities were clearly subordinate to the emperor, and the aristocracy were given lands only for their lifetime at the pleasure of the monarch; they were thus totally subservient to him as the source of all their wealth. The king therefore had to brook virtually no opposition. However, as there was no institutionalized method of succession, the only internal challenge the monarchy faced was from rebellious sons, and this was one of the major factors in the downfall of the Mughal dynasty. Returning to the here and now, all we can hope is that Nawaz Sharif and his crew will draw some lessons from the recent imbroglio, as will the judiciary. But somehow, I doubt it. However, for me the bottom line is that the worst kind of democracy is better than the most benign dictatorship. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971130 ------------------------------------------------------------------- The siege from within ------------------------------------------------------------------- OUR capacity to defy the old adage that things get worse before they get better knows no bounds; in our case, things only get worse. The crisis gripping the state was disastrous enough; on Friday, we outdid ourselves. A mob of people allegedly including ruling party legislators and activists stormed the Supreme Court building in a bid to overawe the judges and disrupt the court proceedings. If this incident has in many quarters raised memories of the Nazi onslaught on state institutions, it should not be considered as surprising. The manner in which PML leaders have bent over backwards to dissociate themselves from the attack only strengthens the public impression of guilt. The all-too-pious statements affirming the government's respect for the judiciary are unconvincing in view of what has gone before. Suspicions that the outrage was engineered will be set at rest only if some of the PML men named in newspaper reports are disciplined and made to answer for their hooliganism. Furthermore, in addition to any punishment that may be meted out to them under the law, the culprits must be expelled from the ruling party. This is the least the party can do if it really repents of the monstrous behaviour of its followers. But Friday was a disaster in many other ways, too. The rift in the judiciary widened further. A directive went forth from the Peshawar bench of the Supreme Court for the full court to be convened on Monday; the Chief Justice of Pakistan immediately wrote to the president, asking for a meeting of the Supreme Judicial Council to consider the conduct of judges who had ordered constitution of the full court. Questioning sounds have been heard about the chief justice from the benches at Karachi and Quetta also. Issues have become personalized and thus have been trivialized. The detached majesty of the judiciary has come under a cloud. Threats have been made to use parliament to prosecute the president and the chief justice. The prime minister, charged with contempt of court, appears to believe that an electoral mandate entitles him to ride roughshod over anyone who crosses his path, including what are seen to be refractory state institutions. The role of the presidency, which has sought to delay taking action on the executive's recommendations, is no longer seen as neutral. Meanwhile the much neglected but selectively invoked Constitution of this country lies forgotten in a corner, although it must remain the ultimate point of reference. It is claimed that the supremacy of the parliament envisaged by the Constitution is being challenged. The fact is that under a written constitution only that document is supreme, and sovereign power is distributed among the legislature, the executive and the judiciary in accordance with the scheme embodied in the constitution. In both letter and spirit the Constitution envisages a judiciary that is completely independent and free from being vulnerable to intimidation by either the legislature or the executive. The situation has gone beyond apportioning blame. Positions have become too rigid to expect anyone to back down at this stage. The nation faces disaster if the impasse is permitted to continue any longer. This newspaper has received calls from readers who have broken down and openly wept on the telephone line over the tragedy that has befallen the country. Only those opposed to the stabilization of the democratic order can rejoice at the present pulverization of the political process. The only solution to the crisis is that all the principal dramatis personae should temporarily withdraw themselves from the scene for a cooling-off period. The chief justice should himself call a meeting of the full court and then announce that he will go on leave and not be part of the deliberations while the rest of his brother judges consider the questions that have been put forward as requiring adjudication, including the contempt of court case against the prime minister. The president and the prime minister should take a few days off from the business of governing: no doubt, they will welcome the break after the tension of the past two weeks. Perhaps everyone will come back refreshed and chastened and some equable balance between the various institutions may then be struck. This is not a very democratic proposal; indeed, it should be considered as extremely unorthodox. But, instead of pointing an accusing finger at one person and thus aggravating the already prevalent confrontation and confusion, this in our humble opinion appears at least to promise some respite and time to reflect on the problems that we have managed to create for ourselves by our collective immaturity, foolishness, intrigue and arrogance. Today, democracy in this country is in a state of siege - a siege from within. There is a chance that the minatory vulnerability thus created may be rendered less dangerous and perhaps more manageable if those heading the institutions hit by the current crisis are prepared to present an example of self- abnegation in the service of democracy - and the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971204 ------------------------------------------------------------------- After the dark night ------------------------------------------------------------------- MR Farooq Leghari's resignation as president would be seen by each of the groups involved in the bruising political and judicial battle that has just ended through its own prism. To the neutral observer, the immediate consideration is that the nation has been given a respite from a crisis that was unnecessary; it was sustained by petty intrigue, which had nothing to do with the welfare of the people, and which, if it had gone on, could have only made the ordinary citizens' already miserable lives worse. However, it may yet have served a purpose if it helps to focus attention on the risks involved in seeking to subordinate institutions of state to the whims of individuals. The democratic system, after all, came dangerously close to collapse. Now that Mr. Leghari has resigned, it would be uncharitable to say that he, too, contributed to the making of the crisis. There was a persistent impression in some political quarters that the Nawaz Sharif government's highhandedness, which led it from one blunder to another, was being considered opportune by sections of the ruling elite and their hangers-on to discredit and then change the system of governance on the assumption that we were not fit for parliamentary democracy. But the manner of Mr. Leghari's going was not without a certain decorum and should be of some help to him if he ever decides to resume his political career. While leaving the presidency, he appeared to reduce the conflict to a choice between approving the recommendations of the elected government with which he did not agree or resigning. This should be viewed as a slap on the face of the government which wanted the president to acquiesce in every step, however undemocratic, it wanted to take. Mr. Leghari should have known all along that in a parliamentary system, the choice which he said ultimately confronted him is built into his office; there was no running away from it. Indeed, one of the amazing aspects of the entire episode is the belated realization of matters of principle and conscience that seemed to strike everyone. The president suddenly became aware of how he was being asked to authenticate acts which he considered distasteful or not in accordance with the Constitution; Mr. Nawaz Sharif began overnight to believe in the supremacy of a parliament which he had sought constantly to use as a mere rubber-stamp; and some of the judges of the Supreme Court took much delayed, ex post facto notice of the chief justice's appointment in violation of the rules of seniority. The fatal flaw in the contentions that flowed back and forth was that no one had the right all on his side: moral battles and battles of principle can be fought only by those who are not motivated by personal considerations and whose own careers are without blemish. The superior judiciary has perhaps suffered most damage in the conflict, if only because it had never before gone through an open split in its ranks like the one witnessed in recent weeks or such a blistering confrontation with political authority. That one bench headed by the chief justice found nothing wrong in suspending, almost without arguments, a law that had undone one of the most repressive of the constitutional implantation's of a military dictator is evidence of the lengths to which we were prepared to go. Rehabilitating the dignity and unity of the Supreme Court should now occupy the minds of its judges; it is the one institution in the country which should always remain above the cacophony and distortions of politics. Where our elected leaders are concerned, they have shown a remarkable inability to learn from experience or even from their own misfortunes. It remains uncertain whether Mr. Nawaz Sharif will now begin to behave in a more restrained manner and resist the temptation of encouraging his partymen and followers from indulging in acts of hooliganism like the attack last week on the Supreme Court. He has been swearing by the sovereignty of parliament in the past few days - although he has seldom attended parliamentary sessions, is never present in the National Assembly to answer questions, bulldozed important legislation in a matter of minutes and generally taken the house for granted. He has shown himself to be impatient of the normal processes of the law, and has not so far satisfactorily explained why he was opposed to the elevation of certain judges to the Supreme Court - an action which triggered the chain of the recent distressing events. The gagging law which went by the name of the 14th amendment should be suitably amended by the legislature itself to make it conform more to civil liberties and freedom of choice and action. Parliament must be accorded the respect which it should command in a democracy and its public accounts and other watchdog and deliberative committees made stronger and more autonomous bodies. Lastly, there have been muted reports about the role of the military in the crisis. The COAS was active in meeting the various principal players and, given the reality of our politics, it is not unlikely that his was finally the deciding voice. But, as we said at the very start, the important thing is that the atmosphere has cooled down and provided an opportunity for all concerned to reflect, among other things, on how their overriding ambitions and feeble faith in democracy keep alive the army's role as arbiter. If we do not take corrective action, we may soon be struck by another crisis.

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SPORTS

971201 ------------------------------------------------------------------- Chanderpaul, Campbell lift Windies to 303 in 2nd Test ------------------------------------------------------------------- Farhana Ayaz ISLAMABAD, Nov. 30: Aamir Sohail cracked up unbeaten 62 to lift Pakistan to 122 for 2 in their first innings in reply to the West Indies total of 303 all out at the close of second day's play in the second Test at Rawalpindi Cricket Stadium. On his way to the 27th half century, Sohail (50 off 104 balls) struck six slitting boundaries and a six off Bishop over mid on. Pakistan was given a 41 runs first wicket stand between Sohail and Saeed Anwar. The holder of top one-day record got out cheaply at 16. Curtly Ambrose moved one away from the left hander who was committed while playing away from the body on a ball which was rising to give a straight forward catch to agile keeper David Williams. In this over Bishop gave away 16 runs as Ejaz Ahmed dispatched two lovely boundaries at arrival. However, Ejaz's fiery mood was cut short when misplaced a rising ball from Franklyn Rose down the throat of debutant Philo Wallace at third man. Sohail and Inzamaul Haq (20) had added 58 runs for the unfinished third wicket stand. Resuming their first innings at 179 for 4, the tourists added 124 in 31.5 overs before Pakistan wrapped up the proceedings 38 minutes after lunch. Campbell added 12 runs in 27 minutes in his overnight score. In his diligent knock Campbell faced 254 balls in 334 minutes, with ten boundaries. The reviving fifth wicket stand contributed 147 runs off 287 balls in 201 minutes. In its misses and flashes the sixth wicket had produced 44 valuable runs when Waqar having tried the pace in his sixth over came round the wicket to bowl to left-handed Chanderpaul who trying to play on the backfoot was trapped plum in front. Chanderpaul (95 off 154 balls in 267 minutes) was racing towards what could have been his second Test century. Next Ian Bishop (10) was treated with an onslaught of over-pitched deliveries from Shoaib Akhtar. He lofted one for six over long leg. But after tempting him, the debutant pitched one on target to send Bishop back to the pavilion. Windies went to lunch at 271 for 7 in 94 overs. And then Rawalpindi duo of Azhar and Shoaib wrapped up the Windies innings in 38 minutes who scored another 32 runs in 7.5 overs. Trying to drive Shoaib from outside the leg stump, William's two short of 50 mark was caught behind at the total of 291. Four runs later, Azhar struck twice in his 17th over removing the middle stump of Franklyn Rose who had played a square cut in the same over and then trapping skipper Courtney Walsh in front for a duck. Azhar finished with figures of 4 for 53 runs in 17 overs. Waqar remained a little costly with 3 for 99 in 27 overs while Wasim took 1 for 40 in 22 overs. Debutante Shoaib returned with figures of 2 for 47 runs in 15 overs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971204 ------------------------------------------------------------------- Pakistan down WI by record margin ------------------------------------------------------------------- By Farhana Ayaz RAWALPINDI, Dec. 3: West Indies stature as a phenomenal cricket force was badly tarnished as Pakistan romped to a spectacular victory, crushing them by an innings and 29 runs in the second Test at Rawalpindi Cricket Stadium. This was the biggest victory margin as Pakistan surpassed their Peshawar score where they had beaten the visitors by an innings and 19 runs. Skipper Wasim Akram termed it a great achievement and praised the team spirit and team work besides the scintillating performances of Aamir Sohail (160) and Inzamamul Haq (177). Here on the fifth and last day, Pakistan took just 52 minutes to wrap up the West Indies innings and match, registering a 2-0 unbeatable lead in the three test series. A second consecutive defeat was staring West Indies in the face when they started this morning with Carl Hooper (44) and Ian Bishop (01). Earlier, one run was added to the West Indies total following a meeting of umpires Javed Akhtar, David Shepherd, match referee Raman Subba Row and the two captains. It may be added here that Waqar Younis had bowled a beamer on the last ball yesterday which had hit Carl Hooper's gloves before going to the wicket keeper Moin Khan. Umpire Javed Akhtar had neither called it a no-ball nor given the batsmen out as bad light stopped play. Waqar also apologized to Hooper stating the ball had slipped from his hand. Since the beamer was declared a no-ball, play started from the pavilion end with Waqar to complete the over. His bowl was gently played back by Ian Bishop. Incidentally, Wasim Akram bowling the first over started with a no-ball. In the same over Hooper hooked him for a six to complete his quick fire half century on 58 balls. It included four sixes and five boundaries. Pakistan struck the first blow of the morning when left handed Ijaz Ahmed sent in a brilliant throw to have Ian Bishop barely out of crease. It was a very close decision given by TV umpire Mian Aslam. At the total of 112 the tourist had lost seven wickets with Hooper batting on 53. Things were hanging in thin air for the devastated visitors as Franklyn Rose (6) lofted Wasim to long on where Mushtaq Ahmed paddled back to hold on to a brilliant catch over his head. Hooper standing on the other end watched the pitiful fall of wickets but the gallant stroke player did not hesitate to drive eloquently. Next Courtney Walsh was sent back by Mushtaq Ahmed whose direct throw at the non strikers end found the tourist captain out of the box when the total was 138. It was all over when Waqar Younis speeding in from the pavilion end uprooted off stump of left-handed Curtly Ambrose on the first ball of his sixth over to wrap up Pakistan's biggest win against the tourist. Pakistan had taken the last four wicket for 38 runs. Hooper, Mr. Dependable of West Indies, remained not out at 73, an exemplary knock. He faced 96 balls spanning 152 minutes. Hooper's exciting innings included four sixes and seven boundaries. Wasim returned with figures of 4 for 42 in 14 overs, Waqar claimed 2 for 44 runs in 12 over. Inzamamul Haq (177) who scored his maiden Test hundred at home soil was declared Man of the Match. The tall batsman wanted to score a double hundred but Walsh cut short his desire. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971203 ------------------------------------------------------------------- Eyles survives scare, Zubair crashes out ------------------------------------------------------------------- By A. Majid Khan MUMBAI, Dec. 2: World champion Rodney Eyles of Australia survived a scare from 12th ranked Alex Gough from Wales to reach the quarterfinals of the Mahindra International at the all-Glass court of the CCI stadium. The 30-year-old Eyles, overpowered Gough, 27, in a 77-minute cliff- hanger. The scoreline read: 15-13, 11-15, 15-11, 6-15 and 15-11. The Australia will be meeting England's world number 14 Mark Chloner, who in the first match of the second round, prevailed over seasoned campaigner Chris Walker. Chloner upset Walker by 17-15, 15-4 and 15-10. Rodney Eyles was 2-1 up in the match but when he led 3-1 in the fourth game, he slipped twice because his shoes were filed with excessive sweat due to hot conditions. After 5-5, Eyles returned the ball high on the front court and Alex Gough raced to victory for 15-6, collecting 12 points in one hand. The Australian changed his socks and shoes and was back for the decisive game. The changes paid dividends as the world champion raced to a 6-2 lead. Gough, however, fought back to level at 8-8 with his magnificent drops and volleys before Eyles secured four points in a row with a brace of winners to surge to 13-9 lead and finally winning 15-11. In another all-England match, Simon Parke recovered from a one game down to beat Mark Cairns 9-15, 15-4, 15-5 and 15-3. He faces Peter Nicol in the quarterfinals after the Scotsman, seeded second, Paul Johnson of England 15-5, 13-15, 15-9 and 15-6. Earlier in the day, Pakistan lost its first player when Zubair Jahan Khan crashed out to Australian Byron Davis. Zubair, who was once in the top 10 of the global ranking but slipped out due to inconsistent performances, excelled only in the third game before bowing out 15-10, 15-9, 6-15 and 15-5. However, the major upset of the opening round was the defeat of fast improving Egyptian Ahmad Barada. Barada lost to an unknown Australian Craig Rowland but in a nail- biting finish. Rowland won 15-3, 13-15, 7-15, 15-9 and 15-12. Canadian Jonathan Power made short work of Englishman Nick Taylor. Power won 15-5, 15-10, 6-15, 15-8. Byron Davis raced to as 7-3 lead in the opening game by producing tantalizing drop shots and taking the ball earlier to winners. Zubair struggled to fight back but shots let him down and the Australian looked in total command to win opener 15-10 after leading 12-6 at one stage. The Australian, with a series of Nick and drops, surged ahead 9-3in the second game as Zubair turned frustratingly erratic. Davis took finishing just 13 minutes for a 15-9 win which gave him a 2-0 lead. However, Zubair Jahan two games down staged a great fight back and showed his hitting power, punctuated with disguised drops to build up a commanding 8-1 lead in the third game. Byron David committed many mistakes from the back to the court and Zubair was winner at 15-6 in nine minutes. It was at the start of the fourth game when Zubair Jahan fought with spirit and enthusiasm when he trailed 3-4 against the Australian. But later on Zubair seemed to lose the will as Byron Davis accelerated the pace of the game. Byron Davis won 15-5 is only seven minutes. The Ahmad Barada-Craig Rowland encounter was a hotly contested one. After defeat, the Egyptian told Dawn that the referring was poor. Ahmed Barada was 2-1 up in the match but Rowland played remarkably well to take the fourth game at 15-9, leading with a big margin of 10-1 at one sage. The deciding fifth game was very close. Barada gained a 5-2 lead in the deciding game and was also 8-4 up when the Australian staged a brilliant comeback to make it 8-8. From here onwards, the fight turned more close but Barada was again 11-9 up. Both shouted on each other and the referee asked them to play the game. Rowland was 10-11 down and from here as he showed his racked skill to take five points in one hand as Barada made errors, hitting the board. Rowland was a 15-11 victor. Australian world champion Rodney Eyles watched both the matches of his follow countrymen and gave tips to them after each game. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971204 ------------------------------------------------------------------- Jansher Khan surges into quarter-finals ------------------------------------------------------------------- By A. Majid Khan MUMBAI, Dec. 3: Pakistan's Jansher Khan, marched into the quarterfinals after brushing aside the challenge of Australian world number 11, Dan Jenson by 3-1 in the Mahindra International. The top seed and eight-time world champion who won 15-4, 15-11, 16- 17, 15-10, now meets Ireland's world number 18 Derek Ryan. Ryan secured a walk-over against England's Martin Heath, who has stomach problem. Heath, the world number 20 is confined to bed in a hotel, the announcement from the organizers said. In tomorrow's quarterfinal against Derek Ryan, Jansher Khan, who is getting into rhythm after playing two matches, appears to be odds on favorites over the Irishman to book his place for a likely semifinal clash against Jonathan Power of Canada. The Qatar international champion beat Jansher in the semifinals before capturing the title. World number three Jonathan Power tonight eliminated Egyptian world number 16 Amir Waghi in straight games. Power won 15-12, 15-5, 15- 11 to qualify for the quarterfinals. Jansher was 4-2 up in the second game before the Australian fought back to take the 5-4 . But the Khan again went 7-6 in front. Later it was 7-7 as the Khan hit the board. There had been fight for every oint and Jansher again lost the 10-7 advantage when he twice hit the board and his return went out of court to allow the Australian level at 10-all. Jansher brought his rich experience into play and after dislodging the Australian from the Tee, he hit winners to win the second game 15-11 in 15 minutes. Jansher was 1-5 down in the third game as all his returns and drops went into the board. He recovered to be 6-6 but throughout the game Jensen almost led the way at 9-8, 10-8, 11- 8 and 11-10 with Jansher leveling the score at 11-all. The Australian put up a great fight as Jansher looked unhappy when his drops hit the board. After 12-12 and 13-13, the Australian produced volley drop to be 14-13 needing only a point to take the game. Jansher fought with spirit and zeal to make it 14-all and 16- 16 when he hit the board and Jensen won 17-16. The fourth game too was highly contesting and absorbing. The Australian was 7-5 in front and also led 9-8 when Jansher further accelerated the pace with his hard drives by maintaining good length and waited for the opportunity for backhand and forehand drop winners. Jansher trailed 9-10 in the fourth game when he returned with renewed determination, rather turning ruthless in handling his challenger, to take six points in one hand with a brace of winners. He won 15-10. In the last encounter, Byron Davis had the better of Craig Rowland in an all-Australian match. Davis won 15-8 15-11 and 15-9 to go through to the last eight. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971205 ------------------------------------------------------------------- Jansher bamboozles Ryan, Eyles falls to Chaloner ------------------------------------------------------------------- A. Majid Khan MUMBAI, Dec. 4: Eight-time world champion Jansher Khan took just 41 minutes to destroy Ireland's Derek Ryan on way to the semifinals of the US$ 110,000 Mahindra International. The 28-year-old top seed gave a demonstration of skillful play for a 15-8, 15-9, 15-8 victory. Jansher, after his emphatic victory over Ryan, said he was gaining confidence and would like to settle accounts with Power for the Qatar Open defeat. Jansher Khan's victory over Ireland's Derek Ryan provide no fireworks as the Khan was all over the place after 5-all in the opening game. Jansher was magnificent in his stroke production and several of his forehand drives and drops caught Ryan on the wrong foot. He finished the opening game in only 12 minutes. Then the great Khan turned ruthless with his challenger in the second game and never looked back after racing to a 7-0 lead in one hand. Jansher doubled his lead with a 15-9 win in the second game. Ryan, who played an error-filled second game, however, raised the tampo of his game as the Khan lost his concentration to allow the Irishman go 8-6 ahead. But the Khan regained his lost composure and playing superb volleys and drops, took 10 consecutive points for a 15-8 triumph. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 971206 ------------------------------------------------------------------- Jansher edges out Power to enter Mahindra final ------------------------------------------------------------------- A. Majid Khan MUMBAI, Dec. 5: Pakistan's remarkable Jansher Khan overpowered Jonathan Power in the semifinals of Mahindra International squash. Jansher, however, survived some debatable decisions by the Scottish referee to set up a final against Peter Nicol. Scotland's Peter Nicol, in the first semifinals defeated England's Mark Chaloner by 3-1. Top seed and former world champion Jansher Khan won the marathon five games battle against third seeded Canadian Jonathan Power 15- 12, 12-15, 10-15, 15-13, 15-7 in the second semifinal watched by around 200 spectators. The match lasted 88 minutes. Jansher won the first game at 15-8 in 17 minutes having enjoyed a 11-6 lead and taking the game with perfect forehand drop. After 8-8 in the second game Jonathan Power adopted questionable tactics and despite his disruptive antics the Khan went 9-7 but later on he lapsed into errors when his several appears were turned down by the referee. Power took seven points in one hand to go 13-9 up and won the game 10-15. Power took control of the third game as Jansher Khan looked upset but struggled to regain his touch. He looked not in his element and made several unforced errors. However, after 9-9 Power, unquestionably, played outstandingly and dominated the front court with his marvellous drops and angles to win the game 15-10. he was 2-1 in the match. Jansher Khan was 0-4 in deficit in the fourth game but recovered to close the gap 5-7, 6-10, 9-10, 11-13. The Khan staged a remarkable comeback by dislodging Power from the Tee and showed his racket skill to be 13-13. Power hit the board and Khan produced a magnificent forehand drop to take the game 15-13. Jansher Khan started the fifth and the last game on a blistering pace. He hit the ball with great power and accuracy and gave a demonstration of skillful play to lead 8-4. No less than four time let calls were called to the disliked of Jansher Khan who appealed for stoke. However, after 9-6, Jansher Khan turned ruthless in handling Jonathan Power and secured eight points in one had to win the match 15-7. ________ webmaster@dawn.com ______ http://dawn.com/ Dr. Altamash Kamal, DAWN - the Internet Edition Karachi, Pakistan Back to the top.

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