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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 13 February 1997 Issue : 03/07 -------------------------------------------------------------------

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

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

CONTENTS

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NATIONAL NEWS

National parties relegation dangerous for federation Transfer of power schedule finalised Nawaz should abolish CDNS, says NYT UK detectives were paid 200,000 pounds Benazir asks Leghari not to wind up Mir tribunal MQM, PML reach accord on Sindh coalition govt Army deployed in Khanewal after rioting Minorities NA results delayed ---------------------------------

BUSINESS & ECONOMY

New govt may scrap agreement with IMF Current account deficit rises in 3 years Rupee gains 63 paisa against dollar in kerb Forms of administrative corruption in Pakistan The law and investments in Pakistan Economic challenges facing the new govt ---------------------------------------

EDITORIALS & FEATURES

Villainy Ardeshir Cowasjee Bhutto's tragedy, Sharif's challenge Eqbal Ahmad Prospects of talks with India M.H. Askari Industrys response will be vital Sultan Ahmed -----------

SPORTS

Salim Malik to play one-dayers for HBL Waqar, Mushtaq to keep out of PCB commitments

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NATIONAL NEWS

970209 ------------------------------------------------------------------- National parties relegation dangerous for federation ------------------------------------------------------------------- Shamim-ur-Rahman KARACHI, Feb. 8: The general election has dealt a serious blow to ethnic and religious extremism and the relegation of national parties to one province only has created a dangerous situation for the federation, analysts say. This was evident from less votes polled by the MQM compared to the votes polled by it in the previous three elections, and the defeat of Maulana Fazlur Rahman of the JUI and Maulana Mohammad Azam Tariq of Sipah-i-Sahaba Pakistan. Religious parties never got the mass support in the elections but they had played the role of spoilers effectively in the past. Losers have accused the government of "massive rigging," which was promptly denied by the government. The MQM and the PPP have alleged stuffing of ballot boxes and other irregularities. However, in terms of number of seats the MQM has not lost anything. The rout of the PPP in Punjab has baffled everybody and even independent analysts are unable to digest the margin of votes between the PML (N) and PPP candidates. The lesser number of votes polled by the MQM is also being interpreted by some observers as the distancing of the "sleeping votes" owing to militancy and violence. The MQM was not prepared to share this perception. The PPP also refused to accept the result, which it maintained were "doctored." Analysts also maintained that the PPP and the MQM had suffered on account of their militancy and polarisation in the city which went through a long period of violence. In Punjab the PML exploited Punjabi chauvinism and it was helped by Benazir Bhutto's repeated mention of injustice with prime ministers hailing from Sindh. Analysts were of the view that though the PPP had been routed in Punjab in terms of seats, but in terms of percentage of vote it has not been completely wiped out. They are of the view that by rejecting the PPP a signal has been sent to minor provinces that Punjab would like to be in the driving seat. Commenting on the outcome, PPP Senator Raza Rabbani said: "The compartmentalisation of political parties in the provinces is dangerous for the federation and would give boost to tension and to centrifugal forces. "It reflects the emergence of one-party rule in the country," he said, fearing that the country would be faced with even bigger problems. Sen Rabbani said despite a decisive majority in the assemblies Mian Nawaz Sharif would still be tied down and might like to have smooth sailing as some of his powers as prime minister had been clipped by recent amendments. In this context, he mentioned the extraordinary powers conferred upon the State Bank governor who could now alter the budgetary targets set by the government. "It amounts to usurping the rights of the parliament," he said. Although the PML (N) celebrated its historical victory, the absence of any opposition in the Punjab Assembly after the PPP's banishment from the province could prove to be dangerous for the decision-makers. The outcome of elections in Sindh was different and could be a source of bickering. The surprising inroads made by the PML (N) into Sindh, considered to be the bastion of the PPP, had made it the power-broker and placed it in a dictating position despite fewer seats than its arch rival PPP and the MQM had, analysts said Top on the agenda of Mian Nawaz Sharif, who has agreed to uphold structural economic changes initiated by the caretakers, would be to accelerate privatisation to beef up the dwindling reserves, currently at approximately $750 million. Next month the payment of 600 million dollars debts is due, followed by an equivalent amount in June. In foreign policy, amicable relations with India and resolution of the Kashmir issue would haunt Sharif constantly. The initial months of Mr Sharif would be thorny during which he is expected to focus on meeting the targets set by the IMF, and would be watched by the CDNS, opposition and the market, besides the international financial institution. His government would come under intense pressure to annul the 8th Amendment and the CDNS, as the latter is expected to take over the steering role after the repeal of the controversial constitutional amendment. While the opposition would be marking time, Mr Sharif would be under pressure to expedite the process of accountability. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970209 ------------------------------------------------------------------- Transfer of power schedule finalised ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, Feb. 8: The newly-elected National Assembly would meet on Feb. 15 and the members would take oath the same day, chief of Pakistan Muslim League, Mian Nawaz Sharif, told newsmen on Saturday after his first meeting with President Farooq Leghari since his party's landslide victory in Feb. 3 elections. He said he had also finalised with President Farooq Leghari, during the meeting, the process of transfer of power to the elected representatives. He said elections for the speaker and deputy speaker of the lower house would be held on Feb. 16 and he would take vote of confidence on Feb. 17. Responding to questions, he said during his talks with the president which lasted over an hour, issues of national importance and transfer of power to the new government were discussed. The PML chief said he had also discussed internal and external situation, particularly the deteriorating economic situation in the country, with the president. To a question, he said, the PML government would extend a hand of co- operation to the opposition in the best interest of the nation. "We will not do to them what they did to us". "We do not believe in the politics of confrontation or revenge, Mr Sharif said. In response to a question about the PML's strategy towards MQM, Mian Nawaz Sharif said: "We want to take along the MQM and our Sindhi brethren. We want to act as a bridge and we have the capability and resolve to do so." He said his party would play a "key role" in ending all "prejudices" in Sindh as it had emerged as the single largest party in the country with participation from the remotest corners of the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970207 ------------------------------------------------------------------- Nawaz should abolish CDNS, says NYT ------------------------------------------------------------------- Our Correspondent NEW YORK Feb 5: Nawaz Sharif should abolish the newly created Council for Defence and National Security and assure "Pakistanis and country's friends, including the United States, that military does not have undue influence in running Pakistan", says the New York Times. In an editorial -A Cheerless Election in Pakistan- the Times says "Mr Sharif should abolish a newly created advisory council, dominated by military, which was set up after Ms Bhutto's government was dismissed." Saying that the "voters of Pakistan were understandably sullen about their elections this week" as the voters turnout was dismal 30 per cent, the Times says that "Clearly Mr Sharif's first task is to clean up the bribery and influence peddling that have nearly destroyed the political institutions of a country ruled by the military for half its history." Observing that "Ms Bhutto's efforts to combat corruption were weak", the Times warned "Mr. Sharif would be mistaken to wage a vendetta against her." Acknowledging that "Pakistan has had difficulty establishing civilian institutions because of the tremendous power wielded by the army and intelligence services, the clergy and the wealthy feudal landlord families, of which the Bhuttos were one of the most powerful," the Times asserted that the "United States should do what it can to help Pakistan establish honest and independent civilian institutions". While noting that "Pakistan faces great problems of poverty, illiteracy, crime and tensions with its neighbours, especially India ," the Times asked Washington "to serve as a force for stability in South Asia." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970212 ------------------------------------------------------------------- UK detectives were paid 200,000 pounds ------------------------------------------------------------------- H. A. Hamied KARACHI, Feb. 11: Testifying for the second time on Tuesday as a witness before the Murtaza murder case tribunal, Sindh home secretary Manzoor Hussain Bhutto said the British team of detectives had submitted a preliminary and final report to the government of Sindh. The title of the report is Fatal Shooting at Clifton Garden, Karachi, on 20 September 1996 - preliminary/final report of the independent inquiry team for which the government had paid a sum of 200,000 pounds sterling in foreign exchange. The experts stayed in Karachi from October 28 to November 8, 1996. The home secretary presented a copy of the report before the tribunal and, along with it, he submitted seven documents all related to the sanctioning of Rs 13 million. He said the finance department of the government of Sindh had sanctioned Rs 13 million for the payment to the British experts in Pakistani currency and the money was kept at the disposal of the IG Police, Sindh, and with the change in government at the Centre and in the province, no payment was made by the provincial government and the sanctioned amount was returned to the treasury. According to Manzoor Bhuttos understanding, the money was paid by the federal government from its own resources. The chairman of the tribunal, Justice Nasir Aslam Zahid, judge of the Supreme Court, observed that it was a lot of money paid from the public exchequer and the beneficiary may retire in Brazil for the rest of his life, and the money kept in deposit can earn and his family for the next 400 years. He also observed that many more lives were lost in the past but never the investigators from outside were called at such a heavy cost. Such lavish expenditure will affect the people of Pakistan who are deprived of schools, clean water, health facilities, good roads etc. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970213 ------------------------------------------------------------------- Benazir asks Leghari not to wind up Mir tribunal ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 12: Former prime minister Benazir Bhutto has written a letter to President Farooq Leghari expressing her concern over a reported move of the government to wind up the judicial tribunal investigating the murder of Mir Murtaza Bhutto. I have learnt that in a bid to cover up the facts pertaining to the death of my brother, Mir Murtaza Bhutto, you are planning to wind up the tribunal headed by a Supreme Court judge looking into the matter, Ms Bhutto said in her one-page letter, a copy of which was released to the press by the PPP secretariat. Ms Bhutto said she had learnt that the president had asked the interior minister to direct the Sindh government to wind up the tribunal and, for this purpose, he had also called the caretaker chief minister of Sindh to Islamabad. This is the second letter written by Ms Bhutto on this issue. In response to her earlier letter, the government had assured her that there was no intention to wind up the tribunal. Already different police investigating teams have been changed because they refused to frame my husband and (former) chief minister Abdullah Shah, Ms Bhutto said, adding that framing of innocent people was central to the presidents plan to protect the real killers. This is because, as I earlier stated, that my brother was killed as a part of a timetable to overthrow my government and you were the architect of that plan to overthrow the democratically elected government, she wrote to the president. Ms Bhutto demanded of the president to allow the tribunal to complete its inquiry , and added that the case , involving her husband in the murder, was nothing but a drama staged by the president to protect the real killers. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970212 ------------------------------------------------------------------- MQM, PML reach accord on Sindh coalition govt ------------------------------------------------------------------- Omar R. Quraishi KARACHI, Feb. 11: The PML president Nawaz Sharif and MQM chief Altaf Hussain reached an understanding on Tuesday to form a coalition government in Sindh. The agreement was reached on Tuesday evening after Mr Hussain had a half- hour long telephone conversation with Mr Sharif in Lahore. Meanwhile, two top MQM leaders in Karachi, Farooq Sattar and Senator Nasreen Jalil separately told Dawn that an understanding or agreement had been reached between the two parties, the details of which would be sorted out in due time. Mr Sattar told this reporter at Nine Zero, the MQMs headquarters, that an understanding over which parties would form the next government in Sindh had indeed been reached. He said the details of the agreement would be thrashed out in meetings with the PML negotiating team. Such a team, including Elahi Baksh Soomro and Haleem Ahmed Siddiqui met the MQM team informally at Nine Zero on Tuesday night. Mr Siddiqui also confirmed to Dawn that an understanding with the MQM had been reached on all the points. He said a PML MNA-elect from Lahore, Ishaq Dar, had also been included in the team. While the PML team was at Nine Zero, Mr Siddiqui said, Mr Hussain telephoned from London and briefed all his newly-elected MNAs over his talk with Mr Sharif. Mr Siddiqui said that the PML team would now meet their MQM counterparts on Wednesday. Asked whether there was no chance now of the MQM forming an alliance with the PPP in Sindh, Mr Sattar, an MNA and MPA-elect said: All I can tell you is that our last contact with Makhdoom Amin Fahim was when he had taken our partys opinion and viewpoint on the matter to forward it to his [the PPP] party leadership. That was three days ago and there has been no reply since then. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970207 ------------------------------------------------------------------- Army deployed in Khanewal after rioting ------------------------------------------------------------------- Our Correspondent MULTAN, Feb 6: Two people were killed and over 15 others injured in clashes between police and an unruly mob protesting against the alleged desecration of a copy of the holy Quran by Christians in Khanewal on Thursday. The army was called out for the assistance of the local administration in the morning and curfew was clamped after 12.00 noon in the city and Sadar police station area, for a few hours, to protect the lives and properties of Christians. About 5,000 people staged a sit-in on the railway track on the Sahiwal- Khanewal section, blocking traffic on the main line. Karachi-bound trains were delayed. The protesters also occupied the railway cabin at Dera Taj railway station, six km from Khanewal. Quetta Express and the station superintendent's office were attacked and damaged. The protesters set on fire two churches, shops, houses and other properties belonging to Christians. Police fired hundreds of teargas shells to disperse the protesters and resorted to baton-charging and firing in the air. The angry mob was marching towards St Joseph Church and Civil Lines Church when the police tried to stop them at the Kutchery Chowk. The demonstrators hurled stones and bricks on the police party, resulting in injuries to a number of policemen. Police reportedly resorted to firing to prevent them from advancing. One person was killed on the spot and another seriously injured as a result of firing, police said. Fifty people were reported to have been arrested. But demonstrators claimed that two people were killed and half a dozen injured in the police firing. Another group of villagers which gathered at Chak 91-10-R, some four km from Khanewal, entered Shantinagar and Bhuttabad villages breaking the cordon of army and police. They reportedly looted the houses of Christians and set a number of them on fire. Police and army failed to remove the agitators from the roads and railway track and subsequently restored to firing in the air, teargassing and baton-charging. According to details, Sadar police, headed by SHO Inspector Azizur Rehman Dogar, had raided Christian village Shantinagar, on Jan 17 to arrest a person, Baba Raji, involved in a kidnapping case. During the raid the police party had allegedly desecrated a copy of the Bible by throwing it on the ground. When the Christian community came to know this, they staged demonstrations and blocked roads on Jan 18, 19 and 20. At last, the deputy commissioner suspended members of the raiding party and got registered cases against them to placate the angry Christians. On Feb 5, at 9 pm, some elements allegedly threw torn pages of the holy Quran and some papers inscribed with derogatory remarks about the Holy Prophet Muhammad (PBUH) in a mosque in Chak 91-10-R. The pages were found by some people who informed the villagers over loudspeakers. Hundreds of villagers of adjacent areas armed with batons and other weapons reached there in tractor-trolleys. Later, similar announcements were made from almost all mosques of Khanewal, Katcha Khuh, Dera Taj and Pirawal, and more than 10,000 people gathered in Khanewal city. Some of them attacked the Saint Joseph Church and set it on fire. However, police fired teargas shells and also baton-charged the crowd. The local fire brigade put out the fire. The district administration tried to placate the citizens who deferred their protest till Thursday morning. About 35,000 people gathered in Khanewal city on Thursday morning. They hurled stones and bricks on the police which tried to check their advance towards the Christian localities. In view of the rapidly deteriorating situation, army was called out to assist the civil administration in maintaining law and order. Army jawans cordoned off the Christian localities and churches but the people managed to enter Shantinagar and Bhuttabad where they set on fire a number of houses after ransacking them. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970213 ------------------------------------------------------------------- Minorities NA results delayed ------------------------------------------------------------------- Staff Reporter KARACHI, Feb 12: The National Assembly results for minorities have been delayed for the last eight days, following allegations of rigging levied by the candidates. The official results for minority MNAs scheduled to be released from the Election Commission, Islamabad have reportedly been held up by the commission following applications filed by the minority candidates expressing suspicion that figures may have been altered during tabulation of election results from polling stations. Sources said that the problem occurred every time since the system of separate electorate went in place. According to them, the changes were mostly suspected to occur at the tabulation stage when it became very simple for ROs to change the results (collected from different polling by AROs) by a simple alteration in numbers. The minority candidates have said that it has become increasingly difficult for them to contest election since the entire province has become a constituency for them. There are a total of 100 polling stations in Sindh, some located in remote areas where they claimed it was not possible to monitor the vote counts. Two minority candidates, Dr Khatoomal Jeevan and Krishan Lal have already been unofficially elected MNAs from Sindh, with official results expected in a day or two.

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BUSINESS & ECONOMY

970213 ------------------------------------------------------------------- New govt may scrap agreement with IMF ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 12: The incoming Nawaz Sharif government is expected to reopen negotiations with the IMF authorities in order to coax them into agreeing to an upward revision in the budgetary target from four percent to five per cent for the current year, informed sources told Dawn. Mian Nawaz Sharif and his finance minister-designate, Senator Sartaj Aziz, are said to have decided to part ways with the Fund if the latter disagreed and instead make efforts to raise the needed foreign exchange resources through more appeals to Pakistani workers abroad for increased flows of deposits of 1000 dollars and more. The Fund is said to be already unhappy with the caretakers for showing the $160 million received from IMF under the standby arrangement as part of overall foreign exchange reserves of the country. In the reckoning of the Fund the actual reserves with Pakistan currently are no more than 450 million dollars whereas the government is claiming the amount to be 610 million dollars by adding the 160 million dollars of the Fund. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970212 ------------------------------------------------------------------- Current account deficit rises in 3 years ------------------------------------------------------------------- Muhammad Ilyas ISLAMABAD, Feb. 11: The Planning Commission has projected the deficit in the trade account to worsen further during the last two years of the 8th Plan period due to the globalisation and liberalisation of trade following the establishment of World Trade Organisation. According to Mid-Plan Review of the 8th Plan, the current account deficit increased to $8735 million during the period 1993-94 to 1995-96, as against the Plan target of $6701 million for the first three years. This happened despite decline in imports from the targeted 7.5% increase to 7.1% increase. The major setback was the slower than projected growth of exports. The Plan envisaged these to grow at the rate of 12.5% in nominal dollars terms, but the actual achievement was 8.9%. The performance of the external sector had not been satisfactory, it candidly remarks. The Review says that the exports would have to face fierce competition. Only those countries would benefit from the establishment of WTO as are efficient, have comparative advantage and can produce better quality products. In Pakistans case, the exports are less competitive due to low quality and higher cost of production. In nutshell, it remarks, from now on only the principle of survival of the fittest will operate. The Review was commissioned by the previous government but was released in a re-hashed version by the caretaker government. The 8th Plan had envisaged a significant improvement in the balance of payments by bringing down the deficit in the current account balance from an estimated benchmark of 4.4% of GDP in 1992-93 to 2.4% of GDP in 1997-98. Workers remittances were planned to increase from the benchmark level of $1.5 billion at an average rate of 2% per annum. On the basis of these assumptions about remittances, exports and imports, a cumulative current account deficit was anticipated at $10.6 billion, or on average basis at $2.1 billion (3.4% of GDP). At the end of the three-year period, however, the cumulative deficit in the trade account surpassed the Plan target by 70.2%. However, this was offset somewhat by improvement in the invisibles account. A sharp increase in the inflows of the foreign currency accounts coupled with a moderate decline in the invisibles payments, reduced the cumulative deficit of the invisibles balance to $932 million against the Plan target of $2116 million. Consequently, the current account deficit was contained to 4.8% of GDP vis- a-vis the targeted 3.9%. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970207 ------------------------------------------------------------------- Rupee gains 63 paisa against dollar in kerb ------------------------------------------------------------------- Staff Reporter KARACHI, Feb 6: The rupee on Thursday received a major boost after the victory of Nawaz Sharif in the national elections as it firmed up by 63 paisa or 2% against the US dollar on post-election open market trading and many financial analysts predicted it could breach the barrier of Rs 41 anytime next week. "The Nawaz Sharif election victory euphoria also swept the money market where investors are leaving the 'safe haven' for a more risky area of share business," said a currency dealer. The rupee was stable around Rs 41.88 and Rs 41.93 for buying and selling in kerb to a dollar during the session preceding elections and in the post- election session but on Thursday it came in for massive selling, which pulled it down to Rs 41.25 and Rs 41.30, its six-month low after the last October 9% devaluations. But in official dealings it did not show any change and was quoted at the last closing level of Rs 40.12 and Rs 40.32 for buying and selling respectively. The gap between the official and kerb rates further narrowed down to Rs 1.13 from the previous over Rs 2 and in related terms it means that the narrowing gap has curtailed the size of cross-border trading in the US dollar. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970208 ------------------------------------------------------------------- Forms of administrative corruption in Pakistan ------------------------------------------------------------------- Dr. Mahnaz Fatima IN CONTINUATION of the argument presented in my article "Institutional decay in Pakistan" (Dawn: January 6, 1997), administrative corruption in Pakistan is a logical outcome of the power pursuits of the administratively inept top men at both the macro and micro levels of management in the country. Since their rise to the top is not a function of merit as much as it is a function of unethical, devious, and corrupt practices; it is the latter that they are equipped to institutionalise better rather than the high standards of work, conduct, and character. Little wonder then that the system has begun to generate an unbearable stench. The most glaring form of administrative corruption appears in the form of appointments, promotions, and rewards dispensed on the basis of criteria other than merit. The commonly used and generally accepted criteria are favouritism, nepotism, cronyism, and intellectual slavery. Rewards usually go to those who excel not in terms of work performance but in the practice of sycophancy, bootlicking, and providing moral support to the manipulative ways of the top management. Many public sector top men get to these top positions mainly because they excel as master manipulators in successfully planning and executing their plans of administrative and/or financial corruption. In these designs, the top men are aided and abetted by their coterie or henchmen whose services and loyalties are rewarded as explained above. In addition, they might share the pecuniary gains, if any, that are made in the process. Consequently, an inner circle of inept and corrupt administrators develop which together serves as a formidable barrier to attempts at organisational and institutional development and to any change for the better. The inner circle is thus comprised of men who have, in turn, been able to acquire power on the basis of the above undesirable set of skills. If 'success' is attained thus and most visibly, the upshot would be that acquisition and practice of the this set of skills would become the primary activity of the onlookers thus providing large-scale moral support to administratively corrupt practices. So 'immorality' became the IN thing in Pakistan's public sector organisations to the extent that its meaning was twisted to set new norms of morality. It was the distortion of the concept of morality that triggered and stimulated the rot in many public sector organisations. When success was seen to be achieved only by the administratively corrupt, then good administrative practices naturally stood disfigured and mutilated. Administrative corruption thus took roots in various organisations eroding the institutions that they were. Institutional capacities were further undermined as the power seeking top management's or powercrats became larger than the institutions they governed. Consequently, in Pakistan, personalities emerged as institutional structures withered and crumbled under the heavy weights of their top management's who came to bear on them like monoliths. We have, therefore, developed a lot of big names in the country but hardly any big institution worth the name. On the contrary, these big names take pride in deteriorating institutional performance if it occurs after their departure. For, they wish to correlate institutional performance to their presence when, as true administrators and management experts, they should be taking pride in developing institutions that would propel themselves through an inner momentum of their own. Instead, these top men wish to be recognised as 'the one and only' and make claims that could only border on blasphemy. The unfortunate part of the story, however, is that they continue to move around as men of integrity, character, stature, and status. And, after committing the worst administrative crimes possible, they continue to hide behind the garb of being peace-loving and law-abiding with impeccable reputations when they should be brought on the carpet for some of their worst offences against the human resources who make up the organisations they have headed. While the need of the hour is to pull off a lot of these masks of pseudo- respectability from the faces that have remained engaged in the consolidation of their power and/or empire-building at the micro levels, it is the same race that is witnessed at the macro level for which the politicians are accursed routinely. It is, however, the smaller size of the race-track at the micro levels that keeps the runners concealed from public scrutiny. Whereas the macro screen provides more visibility to a greater number of viewers which has led to an uproar in the country against the politicians. It should, however, be recognised that in the corrupting race for power and prestige; politicians; professionals, intellectuals, bureaucrats, and technocrats have all participated alike. And, if one studies closely, one will find many in the aforementioned categories who have even changed the race-track from the micro to the macro level or keep interchanging it between the two levels. At the macro level, while the examples of administrative corruption of politicians are numerous; there is yet another strain of this tendency emerging at the federal level that might have far reaching implications for the country's political and economic system. The manner in which the last caretaker set-up packed the grades of 21 and 22 is unprecedented. The number of promotions even spilled over the available vacancies. Perhaps vacancies will be created after the promotions have been made and after the number of government departments and divisions has been reduced which is indeed ludicrous. This addition to the public expenditure stands in stark contrast with the cost-cutting spree of the national accountants in the form of reduced government divisions, re-prioritised development expenditure, and large- scale retrenchments. So, the above could only be a conventional way of rewarding loyalties and winning support, as described earlier in this article, either for the then rulers or for the rulers-to-come. And, the then rulers of the caretaker set-up were clearly a new variant of the establishment dominated by the President and the Bretton Woods connected caretaker economic managers who were later joined by the CDNS. So, why would an outgoing caretaker set-up care to please the bureaucracy in the above manner and in its last days? It could not be for past loyalties as it would neither constitute the ways of the modern world nor were there many cases of such loyalties. Clearly, the intent was to secure loyalties for the future. And, why would there be a need to worry about the future when a new elected government should be expected to take charge of all affairs? Clearly, either the confidence in the future elected government was minimal or the intent was to oversee the future elected government through the above variant of the establishment. If the idea is for the establishment to provide supervision to an elected government, then there is a clear drift to either a presidential form of government or towards a variant of dictatorship of the President-Bretton Woods-military combine. First, the manner in which the drift is orchestrated is devious and can, therefore, be termed an administrative irregularity. Second, the effectiveness of the elected government might be jeopardised by a bureaucracy that will tend to be more loyal to the above variant of the establishment than the executing government. A not-so-effective government might then be easier to dismiss fearing which an office-seeking government might chose to 'take dictation this time from the above variant of the establishment. If the latter turns out to be the case, then, third, the authority of the institution of the parliament would be undermined when there is a need to strengthen to establish parliamentary supremacy so as to trigger an economic development process that would first be people-oriented and eventually people-centred. In the process, not only would the parliament be weakened and reduced to rubber-stamping the decisions communicated by the establishment but the outrageous advocacy by Mr Moeen Qureshi for an active role of the army, and repressive forms of government as in Indonesia and Turkey, might materialise without dismissing another elected government. Even Mr Burki's advice, rendered during a PTV interview (January 30, 1997), vis-`-vis separation of economics from politics is ominous as it points in the direction that Mr Moeen Qureshi has been wanting to give to the country's politics and economics since 1993. The Bretton Woods connected economists, or more correctly national accountants, will not have to wait in the wings as they did during the 1993-1996 Benazir tenure to first see the elected government clean bowled through a virtual economic coup pulled by rival interest groups and then take it over. The above mode, with the help of a bureaucracy-won-over, might just facilitate a smooth transition so as to fulfil the Moeen-Burki aspirations behind a smokescreen of an elected government. Should the above happen, the people of Pakistan will be the losers and administrative corruption of the worst kind will have taken place on its soil. The power to take key economic and political decisions will slip from the hands of elected representatives of the people to self-appointed rulers mainly on the basis of their connections with the powers-that-be within the country and abroad. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970208 ------------------------------------------------------------------- The law and investments in Pakistan ------------------------------------------------------------------- Rizwan Ahmed Siddiqui The fundamental principle of economics is that money flows only to those areas where it is safe and can obtain maximum profit. Investments in the financial sector are of two kindsnamely for long term and on large scale as well as for short term which are on a smaller scale. The former are essentially made to set up 'financial institutions' like banks, investment companies, finance corporation, leasing companies, Modaraba and musharika companies, participation companies etc. Investments for short term & at small scales are made in different schemes of "Financial Institution" to earn short and long term profit. The past three years people have become extremely shaky in their investments in Pakistan and are reluctant even to indulge in small- scale investments in financial institutions. The prime reasons for this change in attitude is the glaring disparity and frequent changes in the fiscal laws without as much as an act of parliament but primarily through ordinances, thereby violating the established principle of investments, contractual obligations leading to economic injustices. As regards large scale investments, it is a fact that in the 90s when the Government of Pakistan relaxed laws and allowed the private sector to invest in Financial Institutions, both the local and foreign entrepreneur were encouraged and they started investments in this sector of the economy. This resulted in the establishment of several financial institutions. Modes of Finance There are two basic means of financing in Pakistan. One is based on interest and the other is non-interest based i.e. the Islamic system of banking. Two separate laws were enacted for the recovery of banking loans, one on interest based loans and the other on a non-interest basis i.e. Islamic mode of financing They are the Banking Companies (Recovery of Loans) Ordinance 1979 and the Banking Tribunals Ordinance of 1994. Under the Banking Companies (Recovery of loans) Ordinance, 1979, special courts were constituted. Cases in which the outstanding amount of the loan up to Rs 10 million were tried by the Special Court and in amounts exceeding Rs 10 million, the High Court exercised original Civil jurisdiction. As per Section 6(i) of the Banking Companies (Recovery of loans Ordinance) Special Court shall: "In the exercise of its Civil jurisdiction have in respect of a claim filed by a banking company against a borrower or by a borrower against a banking company in respect of or arising out of a loan shall act as a Civil Court and in exercise of its criminal jurisdiction, it shall act as Court of session." Whereas Section 5 of the Banking Tribunals Ordinance, 1984, says "A Banking Tribunal shall in the exercise of its civil jurisdiction, have in respect of a claim filed by a Banking Company against a customer in respect of, or arising out of finance, provided by it, all the Powers vested in a Civil Court". Further Section 6(4) of this ordinance empowers the tribunal as "The Banking Tribunal shall pass a decree in favour of the Banking Company as prayed for in the plaint." Section 9 of the ordinance says that any person being aggrieved by any order judgement, decree of Banking Tribunal may prefer an appeal to the High Court, provided that no appeal filed by the defendant against a decree shall be entertained unless the defendant has deposited the decretal amount. Section 10 of the ordinance says that subject to the provisions of appeal under Section 9, no Court, or other authority shall call, or permit to be called in question any proceedings, order judgement or decree of a Banking Tribunal or the legality or propriety of any thing done or intended to be done by the Banking Tribunal under this ordinance. Recoveries The Honorable single bench of Sindh High Court in the matter of M/s. Shafiq Hanif (Pvt) Ltd., Karachi v/s B.C.C.I (Overseas), Limited and other connected suits reported in PLD 1993 Karachi 107 took the view that, "Banking Companies (Recovery of Loans) Ordinance 1979 and the Banking Tribunals Ordinance, 1984 cover an identical subject namely recoveries in relation to banking business. It is only the nature, implications and incidents of such business which distinguish these statutes and furnish the basis which determines whether one or the other may be attracted for seeking legal relief." "An examination of the quoted provision makes it obvious that in relation to a claim filed by a Banking Company against a Customer in respect of, or arising out of 'finance' provided by it, the jurisdiction of a Banking Tribunal in terms of Section 5(i) (1) and 5(3) of the ordinance should be exclusive. The exclusiveness of this jurisdiction is further confirmed when Section 5(3) of the 1984 legislation makes the tribunal also judge of the existence of other ways of financing a similar legislative precedent as to "loan" being found in Section 6(4) of the Banking Companies or finance 1979. These are manifest departures from the general principle that a domestic tribunal unless otherwise provided, can not be judge of its own jurisdiction. Nonetheless but conversely, it will still remain for the "Civil Court" to see, if called upon to do so, as to how far the statutes have operated to curtail their jurisdiction. Further observations "The Special Court, would have jurisdiction in cases of loans, advances, credit and finance. Another difference between these two ordinances is that a borrower may also file a claim in Special Court under Ordinance, 1979, but a Customer under Ordinance 1984 has no such right to approach the Banking Tribunal. There is constraint on the Power of Civil Court. It can not encroach on the domain of Special Court. The Civil remedy in respect of the subject matter in the present dispute is expressly barred by the provisions of ordinance, 1979 against the respondent bank. All the disputes between the petitioners and the Bank are to be adjudicated upon by the Special Court, constituted under the ordinance. The finding of the learned High Court on this score is unexceptionable". The Honorable Division bench of the Sindh High Court in a non- reported case bearing C.P. No.2290/1995, ADBP v/s M/s. Rehman Feeds (Pvt) Limited took the view on September 5, 1996 as, "A suit for damages, as was filed by the Respondent no.1 in the present case, could be entertained by this Court in the exercise of its ordinary original civil jurisdiction." Another bench of the Sindh High Court in a non-reported case bearing first civil appeal No.45/92, M/s. U.K. Garments v/s the First Women Bank Limited took the view on February 8,1993 as: "In our view the first provision to Section 9 of the Banking Tribunal Ordinance 1984 is mandatory and there is no alternative but to refuse to entertain an appeal which is not supported by deposit of the amount claimed in the Suit or the decretal amount as the case may be. If the right of such appeal is illusory, we may add, perhaps inadequate cases, constitutional remedies may be available." Further observed "Petitioner did not file appeal and thus avoided deposit of decretal amount by filing constitution petition, Constitution Petition was thus not maintainable in circumstances." Another division bench of the Sindh High Court in the matter of Abdur Rehman and others v/s UBL bearing I.A. No.26 of 1995 and other 33 connected matters took the view as: "We come to the conclusion that the said precondition of deposit of the decretail amount is only directory in nature, the first appeals under Section 9 would still be maintainable despite failure of deposit of the same." A full bench of the Lahore High Court in a non-reported case bearing Constitution Petition No.1187 of 1993 and other connected Petition observed as under. "Section 4, Section 6(6) as amended by Act VII of 1990 (as it presently stands) First provision to Section 9 of the Banking Tribunals Ordinance, 1984 are hereby declared unconstitutional and these erode the independence of judiciary and are hit by Article 175 read with Articles 2-A 4,8 and Article 25 of the constitution of Islamic Republic of Pakistan and the notifications appointing presiding officers of the Banking Tribunal are equally unconstitutional and without lawful authority and are hereby squashed." The Hon'able Supreme Court of Pakistan vide its order dated July 7 1986 in Petition No.1633-L, Suspended the operation of the impugned judgement of the full bench of Lahore High Court. The Supreme Court of Pakistan in a judgement reported in PLD 1996 SC 77 M/s. Tank Steel and Re-rolling Mills (Pvt) Ltd V/S. Federation of Pakistan observed: "We also uphold the findings of the Learned Division bench in the High Court that the Provisions of the First Ordinance in general and those of Section 6(6) and 9 in particular are not ultra vires the Articles 23,24 & 25 of the constitution." "Last but not the least, under Section 10 and subject to the provisions of appeal under Section 9 of the First Ordinance, no Court or other authority is competent to call for or permit to be called in question any proceedings, order, judgement or decree of a Banking Tribunal or the legality or propriety of any thing done or intended to be done by the Banking Tribunal there under. The writ petition was therefore, not competent." The Supreme Court of Pakistan in the matter of Shaikh Gulzar Ali Co Ltd and other v/s. Special Judge Special Court of Banking and another, reported in 1991 SCMR 590, observed as under. "Appeal provided by Section 12 of the ordinance, because of the pre- condition of furnishing security for the decretal amount imposed by the Court in its discretion, could not be said to be a negation of the right of appeal for the simple reason that right of appeal is not an inherent right ensured by a higher law to be available to the citizens in every case. Right of appeal is creature of the Law." The Hon'able full bench of the Lahore High Court and a division bench of Sindh High Court do not follow the above two rulings of the Hon'able Supreme Court of Pakistan. It is a well recognised principle of Law that in a case where a statute provides a procedure for doing a thing in a particular manner that things should be done in that manner and in no other way or should not be done at all. It is also a settled law that "Special law will prevail upon the General Law, The Hon'able Single bench of Sindh High Court in a matter reported in PLD 1993 Karachi 107, without considering the above established law took the view as under. "Section 10 stay of Suit-later Suit raising the same or similar issues between the same parties or those claiming them irrespective of the Court (in Pakistan) where it was instituted, could be stayed to await the result of the earlier pending Suit." The Hon'able Division bench of Sindh High Court in a matter reported in 1993 MLD 1571 declined to grant liquidated damages to the bank. The Banking Tribunals at Karachi following the decisions of the Hon'able High Court are neither granting liquidated damages nor mark-up for the contractual period of loan finance to the banks. The mark-up which is being granted is only to the extent of 365 days plus 210 days of cushion period. The Banking Tribunal II at Karachi following the judgement reported in PLD 1993 Karachi-107 stayed some of the Suits filed by the Financial institution for recovery of finance & Mark-up accrued thereon, for the reason that defaulter had already filed a damages suit against the Banking Company in the High Court of Sindh for instance ADBP v/s Fine Food Industries (Pvt) Ltd., The above mentioned interpretations, direction orders and judgements and conflicts in opinion have held up the recovery of loans/ Finance of the Banks/Financial institutions in Pakistan. No sooner a decree is passed appeal or constitution petition against the decree is preferred and the same is admitted on the ground that the decretal amount is not required to be deposited or full bench have been created to consider law or the law have been declared unconstitutional etc. and the recovery proceedings stops. In view of the above circumstances it is now necessary to provide a quicker and an effective machinery for recovery of outstanding loans/finance of the Financial institutions/banks. Hence I would propose that the authorities in Pakistan should immediately remove the bottlenecks. The tribunal should be headed by a judge of the High Court and should be empowered to dispose of the matter brought before it within 30 days after giving notice to the Defendant adopting all modes of services simultaneously. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970208 ------------------------------------------------------------------- Economic challenges facing the new govt ------------------------------------------------------------------- M. Ziauddin The economic challenges facing the new government are formidable. But then, the nation has given the PML of Nawaz Sharif such a massive mandate that no problem should appear insurmountable for the new government. The economy is in the grip of an acute bout of stagflation. The new government has, therefore, the job cut out for itself. It must take in hand immediately policies that would promote on a fast track, production activity in the country. On the other hand, it should bring down prices which it can do, by slashing import tariffs drastically to the level of 40 to 45 percent. Tarif reduction In fact with this one stone, that is drastic reduction in import tariffs, the government can kill two birds, one of economic stagnation and the other of inflation. Reduced tariffs would not only bring down the prices of imported consumer goods, but also those of industrial raw materials and intermediaries making local production more attractive and more economical. This will also offer a level playing field for foreign investors to bring in their capital and technology to produce goods in Pakistan using its cheap labour for export markets. Meanwhile, the government of PML can start translating its election promise of reducing the tax rates and simultaneously expanding the tax net. This is expected to discourage tax evasion and enhance revenue incomes. One study has estimated the scale of tax evasion in the country to the tune of Rs 120 billion annually. The actual collection at present is only Rs 80 billion annually. All these taxes, the evaded and the collected, accrue from the non- agricultural sector which makes 75 per cent of the economy. The remaining 25 per cent of the economy is agricultural. And if the actual collection from the non-agricultural sector which is 75 per cent of the economy is Rs 80 billion, then the remaining 25 per cent of the economy which comprises the agricultural sector, should yield at least Rs 20 billion and not mere Rs 2 billion which the budget for the current year estimates it would yield. And if the evaded tax from non-agricultural sector is taken into consideration, then the total collection of income tax from agricultural sector should be around Rs 50 billion. If the tax rates are adjusted downwards for both the agriculture and non- agricultural sectors as promised by the winning party, even then the total collection should not be less than around Rs 150 billion in the first year if evasion is reduced to the minimum. The caretakers have tied the hands of the new government by announcing a National Finance Commission award before first holding a census. The new government would do well to remove this fundamental defect by holding the census immediately and then taking the award to a joint session of the parliament so as to rationalise the award in the light of the results of the latest census. It would also be in the economic interest of the provinces to transfer sales tax back to them, cut its rates to a maximum of 15 per cent and a minimum of 5 percent and reduce the number of rates to three from the present four. With the transfer of the collection of sales tax to the provinces, the government could also consider transferring all the overlapping ministries between the federal and provincial governments to the latter. In order to reduce the burden on the provinces and also allow them to share resources with the local bodies, which the new government should not have problems in setting up through elections at the earliest, the interest rates on federal loans given to the provinces in the past should be reduced to the level of interest actually paid by the federal government at the time of borrowing these loans from internal and external sources. Excess fat The caretaker government has done the right thing in identifying the excess fat in the government. The new government could scale down the excessive non-development budget by reducing this excess fat and down sizing the administration. It should also take the cue from the caretakers on privatisation and speed up the process by getting rid of all the banks except National Bank, and privatising all the power stations now managed by the WAPDA. Simultaneously, steps should be taken to privatise the distribution and billing aspects of the power sector. This exercise would bring the much needed foreign exchange with which the new government could retire the costly commercial loans, especially the $10 billion borrowed from foreign exchange deposits in our banks which hangs like the sword of Damocles over the economy round the clock. Former finance minister Sartaj Aziz who is also the Secretary General of the PML in a television interview soon after the election results were announced, said that his party was committed to resuming dialogue with India and take confidence-building measures in order to reduce tensions between the two neighbours. He made this comment in reply to a direct question on the issue of the galloping defence budget of the country which is eating into other vital social sector demands. Unless the rich, whether the owner of a factory or farm, pays his tax dues honestly and unless the defence budget of the country is rationalised to fit our economic space, we would remain perpetually dependent on foreign loans and aid. Concessional aid is not available any more. On the other hand, the loans have become too costly to mobilise. Therefore, the only alternative left is to spend on defence only that much which we could spare after taking care of our immediate socio-economic infrastructural development needs. The PML has received a clear mandate. It does not have to seek alliances with anybody to form governments at the centre and the Punjab. In NWFP and Sindh it could form the governments with its former allies the ANP and the MQM. At the centre and the Punjab, it does not face any significant opposition. So, there is hardly any hurdle in the way of taking in hand, sane economic policies and implementing them without the fear of being pulled down by the opposition or the President. ------------------------------------------------------------------- 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

970207 ------------------------------------------------------------------- Villainy ------------------------------------------------------------------- Ardeshir Cowasjee ANY villain, knave, jackass or oaf who outside the bounds of the law orders the taping of the conversations of his fellow countrymen  of his own judges, his politicians, the Press people and ordinary citizens of what is termed a democracy  with the intention of extorting, extracting, blackmailing or silencing has to be fully aware that he is so doing with criminal intent. Take Richard Nixon of the great US of A, as a prime example of the art of tapping and taping. He made a fool of himself with his misadventure into the realms of bugging. Watergate will forever overshadow whatever good he may have done. One cannot forget the hangdog weepy look worn by the disgraced president when he boarded the copter on the White House lawn for his last flight out to oblivion. When the Nixon bubble burst, his loyal and clever aide, Henry Kissinger, was all for making an immediate and complete disclosure, but Nixon ruled otherwise. In his memoirs, Years of Upheaval, Kissinger records that: The implication that there was guilty knowledge to hide destroyed what was left of Nixons moral position. It made him a lame duck six months into a presidency won by the second largest plurality in American history... Had matters gone as planned  and the tapes trickled out posthumously  Nixon would have managed the extraordinary feat of committing suicide after his own death. Such was Kissingers summation of the sorry Watergate affair. As for us, Volume VI of the Presidents written statement filed in the Supreme court in response to Benazir Bhuttos petition challenging her dissolution concerns the telephone tapping and the sending by the men of the Intelligence Bureau, who reported directly to the prime minister, of transcripts to the prime ministers house in envelopes marked For Eyes Only. It makes sorry reading, but there is much light relief in the code names given by Benazirs personal intelligence agency to the targeted individuals. Our judges were coded, by her tappers and tapers, as Blind Men and assigned numbers. For instance, Chief Justice Sajjad Ali Shah was BM-1, Justice Salim Akhtar was BM-3, Justice Ajmal Mian was BM-13. The superior judiciary was serialised up to BM-29. Moving lower down the scale, the chief of the public relations and Press affairs of our former prime minister and now PM presumptive, Mian Nawaz Sharif (also bugged with code name Guest), the one and only Mushahid Hussain (commonly known as Mushahid Sahib) was allotted the code name Smooth Operator. Who can deny that this appellation fits him perfectly? Even Benazirs favourite Pir, Syed Ghulam Moeen-ul-Haq of Golra Sharif was hooked on to the tape recorders on November 2, 1996, three days prior to her dismissal. There was obviously not enough time to think up and accord him a suitable code name, but Blind Seer might have been fitting. Had he finally seen the light at the end of the tunnel, had he let the truth out and predicted a dismal future for his client? What had happened that day? Also tapped and taped was the telephone of Maulana Fazlur Rahman, Benazirs chosen chairman of the National Assemblys Foreign Affairs Committee who was sent by her around the world to represent our nation and who later was the worthy opponent in this last round of free and fair elections of Mussarat Shaheen. What on earth did she hope to learn from him? He was accorded the code name Wolf, though he bore little resemblance to that proud, lean, mean, canny, supple representative of the animal world. Wiseman was the code for the Chairman of the Senate, the man who showed some economy with the truth, covering his tracks in the Supreme Court during the 1988 Junejo assembly dissolution case, the man who had reportedly been chosen and sent to the chief justice of the Supreme Court by the then Chief of the Army Staff, General Aslam Beg with a message. Wassem Sajjad, wise? Benazirs chosen president was not spared. His Information Adviser, Khwaja Ejaz Sarwar, was known to the IB tappers and tapers as Movie-I and his secretary, Shamsher Ali Khan, as Movie-2. Loyal uncle Ghulam Mustafa Jatoi was cryptically known as JT-1 and JT-2, a double honour. Senator Nasreen Jalil of the MQM bore the designation Sea Weed, and the delectable Ms. Saba, also of the MQM, whatever be the justification was endowed with the title Hot Bed. Her late lamented friend Mir Afzal Khan was also found worthy of scrutiny and named Evening Star (strangely apt, as his evening soon faded into night). Gallant army hero, Raja Nadir Parvez of the PML was coded as Panther. And happy-with-life, good old Chandi whose sonorous conversations lull one into a totally false sense of security, was known to Benazirs IB boys as Slim Jim. All three of Nawazs Murree hideout telephones were put on the hook as of November 6, 1994. Cryptic talk of juicy Sirri Paya and Roghni Naan and Badami Sherbat no doubt helped Benazir stay in power for these past three insufferable years. Distasteful eavesdropping on opponents may be explainable but the list of friends, colleagues and supporters who have been bugged is long, and it should help us understand the working of the minds of all the sick IB buggers, tappers and tapers. The Blind and the Wise have now been officially debugged and the Supreme Court has managed to confiscate some 800 tapes. And not a day too the Chief Justice has, suo moto, constituted a bench of three Justices Saidduzzaman Siddiqui, Bashir Jehangiri and Nasir Aslam Zahid to lay down the laws and procedures to be followed by our future governments when they find it necessary and expedient to invade our castles. To end, excerpts from Justice Kuldip Singhs judgement on taping, delivered in the Supreme Court of India in 1996 in the case of Peoples Union for Civil Liberties vs. The Union of India: Telephone tapping is a serious invasion of an individuals privacy. With the growth of highly sophisticated communication technology, the right to hold telephone conversations in the privacy of ones home or office without interference is increasingly susceptible to abuse. It is no doubt correct that every government, however democratic, exercises some degree of subrosa as part of its intelligence outfit, but at the same time a citizens right to privacy has to be protected from being abused by the authorities of the day... The writ petition was filed in the wake of the report on Tapping of politicians phones by the Central Bureau of Investigation... Tapping telephones is a serious invasion of privacy... We therefore recommend that telephones may not be tapped except in the interest of national security, public order, investigation of crime and similar objectives under orders made in writing by the Minister concerned... The order should disclose reasons. An order for tapping of telephones should expire after three months from the date of the order. Moreover, within a period of six weeks the order should come up for review before a Board... It should be for the Board to decide whether tapping should continue... We, therefore, order and direct [that] an order for telephone-tapping... shall not be issued except by the Home Secretary, Government of India (Central Government) and Home Secretaries of the State Governments... The order shall require the person to whom it is addressed to intercept in the course of their transmission by means of a public telecommunication system such communications described in the order [and] to disclose the intercepted material to such persons and in such manner as described in the order. The matters to be taken into account in considering whether an order is necessary... shall include whether the information which is considered necessary to acquire could not reasonably be acquired by other means... The use of the intercepted material shall be limited to the minimum that is necessary... Each copy made of any of the intercepted material shall be destroyed as soon as its retention is no longer necessary... DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970209 ------------------------------------------------------------------- Bhutto's tragedy, Sharif's challenge ------------------------------------------------------------------- Eqbal Ahmad "Meanwhile the Unionists come in with very nearly every able man in both houses in their cabinet  with the House of Commons at their feet and the Lords at their back  supported by all sections of the nation unfettered by promises or hampered by pledges. No party has ever had such a chance. It remains to be seen what use they will make of it." "To my mind they are too strong  too brilliant altogether. They are just the sort of government to split on the question of protection. Like a huge ship with powerful engines they will require careful steering  because any collision means destruction." That was Winston Spencer Churchill, a subaltern at Aldershot commenting on the Tories' sweeping victory in a letter dated August 3, 1895 to his mother Lady Randolph Churchill. Decades later Randolph, Churchill's son and biographer would marvel at the "precocious prescience in a young man of twenty." Mian Nawaz Sharif and his colleagues will do well to reflect on it. Pakistan's latest election will be remembered as a landmark for the crippling blow it has dealt Benazir Bhutto's Pakistan Peoples Party (PPP) and for the power it has invested in the Muslim League led by Nawaz Sharif. History shall judge the winners on how they utilise or squander their enormous opportunity. Mr Nawaz Sharif will be prime minister with a majority that no other prime minister had enjoyed before. Therein lies his promise and also his peril. Two sets of challenges confront him. One may be described as constitutional and political. The other can be grouped as economic and social. The constitutional issues are best viewed in the context of Pakistan's tortuous history, and the consequences of the next steps must be thoroughly weighed. First of all there is the crucial question of developing stable working relations with the president. Pakistan's political instability has been defined largely by two factors: an unresolved tension between the viceregal and parliamentary traditions of government and the inability of the civilian polity to tame the warrior caste. Prime Minister Sharif may not be able to resolve these crucial problems decisively but he is in a position to lay the foundations for their resolution. This legacy is colonial compounded over five decades by the post-colonial elite Britain bequeathed Pakistan with the two contrasting traditions of government. With the viceroy at its apex, the colonial structure of power had rested on three pillars: the bureaucracy, the military and the landed gentry which played a subaltern role. The higher levels of the bureaucracy and army were at first entirely British but were gradually indigenised so that by the time of de- colonisation Indians/Pakistanis were a majority in the higher echelons of the army and bureaucracy. Right up to this decade their ambitious members played central parts in shaping post-colonial Pakistan. The viceregal was an authoritarian state  centralised, rigidly hierarchical, well regulated, and dedicated to efficient and orderly accumulation of surplus. Yet, as Britain ruled India largely in the age of liberalism, the parliamentary tradition also infiltrated the colony. Its carriers were English liberals and, more numerously, Indians educated in English schools in India and Britain. They founded the institutions and movements which popularised modern liberal values, and contested the presumptions of colonial rule. The democratic tradition took uneven roots in the subcontinent. It struck deeper roots in regions  such as south, east, and central India  which had been colonised earlier. Its roots were shallower in areas which were colonised later or which Britain regarded as too strategic to be exposed to what Lord Macaulay described in mid-19th century as "the literature of revolt." The north-western region that is now Pakistan came under colonial rule a century or more later than the southern, eastern, and central India. Given their proximity to Russia, Iran and Afghanistan, given also their insurrectionary cultures these areas were regarded as strategic preserves of viceregal rule. The viceregal style of governance was reinforced in Pakistan by three post- colonial factors. First, the nationalist movement which brought Pakistan into existence had shallow roots in the region where the new state was founded. Two, its founding fathers died early: Mohammed Ali Jinnah in 1948 and Liaquat Ali Khan four years later. In India, by contrast, Jawaharlal Nehru's generation of nationalist leaders survived long enough to legitimise and consolidate parliamentary rule. Three, with the passing of Jinnah and Liaquat Ali Khan senior bureaucrats and military officers  heirs to the viceregal legacy  gained influence and entered into a military alliance with the United States. With the Agency for International Development (AID) and the Military Assistance Programme (MAP) the US was then embarked on constructing the post-colonial into hard anti-Communist states. This development ensured the ascendancy of the viceregal elite in Pakistan. At crucial moments in Pakistan's history  1953, 1954, 1958, 1968, 1971, 1977  the military-bureaucratic elite intervened to frustrate the democratic process. So half of the country's fifty years has been lived under martial law. But military rulers eventually faced popular resistance and the country shifted between dictatorship and democracy. As expected the landed gentry divided its time and manpower between collaborating with and opposing authoritarian rulers. Z.A. Bhutto is a case in point. He entered politics as a protigi of Pakistan's first military ruler: for years served as Ayub Khan's Commerce, then Foreign Minister: broke and became opposition leader; allied again with General Yahya Khan's regime during its military operations in East Pakistan; succeeded Yahya as Martial Law Administrator after the secession of Bangladesh: then became prime minister of a constitutional government over which he presided in a manner befitting a military dictator. Following a wave of public protest over alleged vote rigging. Mr Bhutto was ousted in 1977 by his hand-picked army chief, Mohammed Ziaul Haq. He imprisoned, then executed his benefactor, and ruled until he died in 1988. Z.A. Bhutto vice-regalised parliamentary government with six constitutional amendments which conferred unusual powers upon the prime minister. Eventually Zia-ul-Haq proceeded to 'democratise' military rule by allowing for an elected prime minister. He also amended the Constitution to invest in the president, i.e. in himself, the powers to dissolve elected governments. As president, Zia-ul-Haq used the Eighth Amendment once  to dissolve the government of Mohammed Khan Junejo. His successor, Ghulam Ishaq Khan used it twice  to dissolve the governments of Benazir Bhutto (1990) and Nawaz Sharif (1993). In these three instances the Judiciary gave contradictory rulings, twice circumscribing the Eighth Amendment. Our mixed legacy has been subject also to mixed judicial reviews. In the latest case, the Supreme Court has more than denied Ms Bhutto's appeal. It has augmented presidential discretion to dissolve elected parliaments and changed also a well established norm of evidence. Meanwhile, the president promulgated an Ordinance which introduces a decision making body that includes the president and also the military chiefs. This Council of Defence and National Security (CDNS) is yet another attempt to wed the viceregal and democratic systems of government to the benefit of the former. In brief, the events of the last three months  the president's dissolution of Bhutto's government, the judiciary's seal of approval for his intervention, and his creation of the CDNS as an extra-parliamentary decision-making body  have vastly augmented presidential power. At the same time. Nawaz Sharif's overwhelming electoral victory serves as a counter-point to the reinforcement of the viceregal system of power. This dialectical development enhances the risks of collision. After all the prime minister can dismiss the CDNS. He is within reach too of the two- thirds majority needed to repeal the Eighth Amendment. Principle and a sense of history apart, he would not want to be twice the victim of the Eight Amendment. So the temptation will be there but the timing could be wrong and the manner partisan. As Winston Churchill said of the victorious Tories in 1895, "like a huge ship with powerful engines." Mr Nawaz Sharif's government "will require careful steering" if it is to evade a destructive collision. Prime Minister Sharif's other challenges are those of most Third World governments: He has promised reforms and economic revival. To fulfil these even half way he must establish priorities, avoid flashy options, and take hard, sometimes unpopular decisions. The state has expanded in Pakistan beyond rational proportions. It must be cut down to reduce the enormous government deficits, and also to introduce a modicum of efficiency in administration. Since 1960 rules in the civil services have been eroding and political power is grossly personalised. It is time to restore rules, rehabilitate and empower the Public Service Commission, and establish the supremacy of law over power. The external debt has reached risky levels and eats up the largest portion of the annual budget it must be rescheduled and the process of debt retirement must begin as expeditiously as possible. The banking sector is messed up with bad debts, over- staffing, obsolescence and maladministration; it begs restructuring and streamlining. Ditto for the tax system as Pakistan is another country in which the poor pay much in taxes, the rich very little, and the landed elite not at all. Pakistan's infrastructure remains underdeveloped. Some essential services such as railways have in fact deteriorated. In a long and narrow country, the modernisation of railways is a greater need than the construction of super- highways. The social sector has suffered from neglect and the rapacity of elite classes. Genuine and functionally planned land reform is overdue as without it the country will continue to be hampered politically, economically, and culturally. An overwhelming majority of citizens remain illiterate without potable water, access to health, or habitable shelter. For them to become fully productive citizens serious beginnings must be made to ameliorate their extreme deprivation. Above all, the system of higher education has collapsed in Pakistan. Consequently, the standards of creativity, management, leadership, and governance are declining drastically. In brief, this land and people await a Fair Deal. In foreign affairs. Nawaz Sharif has promised to seek peace with India, review policy in Afghanistan, and mend relations with Iran. Here too he may come under powerful, if invisible domestic and foreign pressures. With Benazir Bhutto's assistance the founders' party has won a historic victory. Will it make history again?

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SPORTS

970213 ------------------------------------------------------------------- Salim Malik to play one-dayers for HBL ------------------------------------------------------------------- LAHORE, Feb 12: The famous Test star Salim Malik, who had to skip the Pakistan cricket teams recent tour to Australia due to ankle-trouble despite being selected, has resumed training and will represent Habib Bank during the one-day matches. Salim Malik, while talking to this correspondent during his fitness- regimen on machines in the Qadhafi Stadium, said that his ankle had improved a lot and he felt to be in good physical condition. I have resumed running and I also take part in the practice-sessions of Habib Bank team at the Lahore City Cricket Association (LCCA) regularly. My team has been training there for the Wills Cricket Cup. While wearing an anklet, the right ankle has not been giving me trouble at all for quite some time now. It was a recurrence of an old trouble but now the ankle is sufficiently healed up, said the dependable middle-order batsmen with a smile! Salim Malik limped out of the Jinnah Stadium in Sialkot while bowling in the last one-day match of the series against New Zealand, which Pakistan lost. His over was completed by his brother-in-law Ejaz Ahmad. The stylish batsman had helped Pakistan win a Test against the West Indies at Faisalabad, resuming batting with his left-arm after having fractured his right-arm by a bouncer from Courtney Walsh. However, Salim Malik could not bat against New Zealand at Sialkot due to ankle-trouble although he had batted magnificently in earlier one-day matches and helped Pakistan in winning the series. Salim Malik said that he had been suffering from this trouble for many years. Whenever he puts his right foot on an uneven surface while running, there is a recurrence of the trouble. That happened in the Iqbal Stadium ground as well. The doctor had told him that there was a small gap in joint of right side of his ankle. Thank God! I have received a satisfactory report now and my ankle is also not bothering me any more, said Salim Malik with a sigh of reliefs DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970213 ------------------------------------------------------------------- Waqar, Mushtaq to keep out of PCB commitments ------------------------------------------------------------------- KARACHI, Feb 12: Pakistans problems of raising a winning combination to fulfil off-season commitments compounded when star pacer Waqar Younis and crafty leg-spinner Mushtaq Ahmad also expressed their nonavailability. Mushtaq said he was only available till the end of April and after mid- September while Waqar Younis stated he may only be available for the Sharjah Cup and not for a two-Test tour of Sri Lanka. Last week, Pakistan captain Wasim Akram also pulled out from the PCB commitments as they clashed with the English County season. Waqar Younis only last year signed a lucrative two-year contract with Glamorgan while Somerset extended Mushtaqs contract for another three years. 1998 is also a testimonial year of Wasim Akram. Between May and September, Pakistan is scheduled to take part in Indias Independence quadrangular Cup, Augusts Asia Cup in Sri Lanka and Singer Cup in Singapore, and Septembers Sahara Cup in Canada. I havent talked to Majid Khan but I will most likely miss the tour of Sri Lanka. This will be my first season with Glamorgan and they want me there before the season start. I had confirmed my arrival there when I had signed the contract last year, Waqar Younis said from Faisalabad. The management wants me there earlier so that I can adjust with the players and acclimatise with the conditions in Wales, the speedster added. Mushtaq Ahmad, who claimed 85 wickets in 1993, 95 wickets in 1994 and 47 wickets in seven games in 1995, stated when he had confirmed his arrival in Somerset by the end of April, he was not aware of Pakistans commitments during the off-season. The PCB had not informed us about the assignments. In fact, these tours or events were confirmed late last year but it was too late then. Now we have to abide by the condition which only we had set, Mushtaq said. Mushtaq said the county had asked about his availability before they had signed him. You see in 1995, I had to miss half of the season because we were called to join the Pakistan team which to tour Sri Lanka. Somerset badly suffered because of it since they could not sign my replacement because of the strict overseas players restrictions. Now they are ambitious to finish in top three, the little leggie said from Lahore. Mushtaq said there was little chance that his county will release him if the PCB requested. I am told that they (Somerset) had informed the PCB about it quite clearly. Mushtaq added he will be informing the PCB about his commitments in writing when he returns to Lahore after the National One-day Championship. It is a formality which we have to fulfil. About his fitness, Mushtaq brushed aside apprehensions that he was struggling with a bad back and knee injury. There is absolutely no truth in the story. In fact, I am more than cent percent fit and also flying out early Thursday for Rawalpindi to join UBL for the Wills Cup. Today, I trained with Salim Malik and Ijaz Ahmad and believe me it was a very strenuous session. There is always an injury risk as we are professional cricketers but I am fit at the moment. I am not only physically strong, I am also bowling well. Waqar was extremely happy with his form and fitness. I am glad that I have recovered from what had been a disappointing four or five months. Now I am fit which has helped in regain my rhythm and speed. My back is now strong enough to hold the pressure. Nevertheless, I have to be careful. Over strain or pressure may still be dangerous, Waqar said. The speed merchant said he would be flying from Faisalabad to Rawalpindi to take part in the Wills Cup but wasnt sure if he would be leading the side. I will very much take part in the one-day tournament and will be looking forward to some good performances, Waqar asserted. Back to the top.

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