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DAWN WIRE SERVICE

------------------------------------------------------------------- Week Ending : 16 August 1997 Issue : 03/33 -------------------------------------------------------------------

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://dawn.com 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

Golden jubilee of freedom today Parliament gives LEAs shoot-to-kill power Former air chiefs urge end to kickbacks SSP, TJP leaders list causes for sectarian violence Nawaz asks US to stop pressing on N-issue Bill to turn Pakistan into police state: lawyers ---------------------------------

BUSINESS & ECONOMY

Economic reforms fail to attract DFI Is the boom in stock prices justified? Normalisation of trade with India being scuttled? KMTP and Karachi's transport problem Trade policy moves from regulation to motivation Fresh package of incentives for EPZs likely PTCL finalizes $250m securitization deal Govt decides to carry on with Keti Bunder plan Investors react positively to passage of anti-terrorism bill ---------------------------------------

EDITORIALS & FEATURES

The great betrayal Ardeshir Cowasjee Can child labour be defended? Shahid Kardar It's the chair that matters Hafizur Rahman Can we stop whining for a day? Ayaz Amir -----------

SPORTS

Cricket Board's worry 100 greatest cricketers; some omissions Golden Jubilee year marked by absence of sports policy Abbasi wants sport to go into private sector 12 Pakistanis to compete in Singapore squash Jansher off to Finland for World Games

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NATIONAL NEWS

=================================================================== 970814 -------------------------------------------------------------------- Golden jubilee of freedom today -------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 13: The nation celebrates the golden jubilee of Pakistan's independence on Thursday (Aug 14) with exuberance, enthusiasm and fervour, renewing the pledge to make the country self-reliant and bring an end to sectarian antagonism. The golden jubilee year will dawn with a 31-gun salute in the federal capital and 21-gun salute in the provincial capitals. This will be immediately followed by a change of guard ceremony at 7:20 am at the Quaid's Mazar in Karachi. Prime Minister Nawaz Sharif will hoist the national flag at a special ceremony at 7:30am in front of the parliament building. Later, he will address the nation from the spot live over radio and TV. The prime minister will then fly to Lahore where he will pay homage to the man who conceived the idea of Pakistan and offer fateha at the Mazar of Allama Iqbal at 11:30am. President Farooq Leghari and Prime Minister Nawaz Sharif will pay homage to the Quaid-i-Azam and offer fateha at his mazar at 5pm in Karachi. At midnight, 50 years to minute since the birth of Pakistan, Prime Minister Nawaz Sharif welcomed the golden jubilee year with an address to the nation direct from the National Assembly which met here on the special occasion. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970814 -------------------------------------------------------------------- Parliament gives LEAs shoot-to-kill power -------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 13: The National Assembly on Wednesday passed Anti-terrorism Bill, 1997, giving sweeping powers to law enforcement agencies, including the power to shoot to kill and arrest without warrants, to curb terrorism and sectarian violence in the country. The bill envisages constitution of special courts for expeditious disposal of cases of terrorism and sectarian violence. It also contains a provision for deployment of armed forces by the federal government at the request of provincial governments in any area threatened by sectarian violence. The National Assembly adopted the bill by voice vote in the absence of the opposition who walked out of the house in protest, terming the bill a "black law." Prime Minister Nawaz Sharif attended the proceedings to emphasise the government's firm resolve to curb the growing incidence of sectarian violence and terrorism in the country. Conspicuous by their absence were the members of Mutahidda Qaumi Movement (MQM) , including their representative in the federal cabinet, Khalid Maqbool Siddique. None of its members was present in the house, giving rise to the speculation that there were serious differences between the ruling coalition on the new bill. The powers assumed by the government under the bill will be evoked through a notification in a certain area where the commission of terrorism or the offences enlisted in the bill will become commonplace. "If at any time in the opinion of the federal government the commission of terrorist acts and scheduled offences have become commonplace in Pakistan, it may, by notification in the official gazette, declare that it is expedient for purpose of the prevention and punishment thereof to have resort to the provision of this act and thereupon the powers conferred hereunder shall be available for use in accordance herewith," the bill said. The bill also gives powers to officers of law enforcement agencies to open fire on people resorting to terrorism or sectarian violence or are likely to commit the offence. "After giving prior warning, use of such force as may be deemed necessary or appropriate, bearing in mind all the facts and circumstances of the situation, against any person who is committing or in all probability is likely to commit a terrorist act or a scheduled offence, and it shall be lawful for any such officer, or any superior officer, to fire, or order the firing upon any person or persons against whom he is authorised to use force in terms hereof," it says. The law enforcement agencies will have the powers to arrest without warrant any person on suspicion that he might commit an act of terrorism. They will also have the powers to enter any premises to make any arrest or to take possession of any property, firearms, weapon or article used or likely to be used in the commission of any terrorist act. The bill caused alarm among the journalists as it enlists the display, publication and distribution of any written material which is deemed threatening, abusive or insulting. However, it does not elaborate the terms " threatening, abusive and insulting." The offence under a provision of prohibition of acts intended or likely to stir up sectarian hatred is punishable for a term of seven years. The opposition members, during the first and second hearing of the bill, expressed serious apprehensions about the possible misuse of the powers being given to the executive. They called for improving the efficiency of the police and law enforcement agencies rather than giving them more powers. They also underlined the need for ensuring strict implementation of the existing laws. They feared that the bill would be used to victimise opposition parties. Mr Sharif, during the debate, allayed the apprehensions of the opposition, saying that the sole objective of the government was to curb sectarian violence. "It is not against any political party," he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970810 -------------------------------------------------------------------- Former air chiefs urge end to kickbacks -------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 9: In an initiative unprecedented in Pakistan three former air chiefs have "strongly urged" Prime Minister Nawaz Sharif to enact a law to eliminate the menace of kickbacks and commissions from defence purchases. In a signed letter sent to the prime minister on Saturday, Air Marshal Asghar Khan, Air Chief Marshal Zulfiqar Ali Khan and Air Chief Marshal Jamal A. Khan, have asked the prime minister to "carry out legislative surgery to remove the cancer" of corruption from "the nation's body permanently." To close the doors on lucrative "kickbacks" in defence-related purchases, they have submitted to the prime minister a 12-page draft entitled The Defence Agents Prohibition Act, 1997. The proposed draft law sets down the procurement procedure, defines offences and suggests penalties for these offences. Penalties include cancellation of the contract, blacklisting of the firm and imprisonment of the commission agent and fine. It also suggests provisions for appeal and indemnity. If the agent is an employee of the government, under the suggested law he is liable to be dismissed without benefits from the service, and will additionally undergo imprisonment with a fine equivalent to 10,000 dollars. The commission of abetment under this act is punishable with dismissal of the individual without benefits from the service and imprisonment and fine of 10,000 dollars. Even the act of passing on information from government files or computer-based records to the suppliers has been made liable to punishment. The suggested law also defines the terms 'commission', 'contracting agency', 'corrupt influence', 'defence establishment of Pakistan', 'evaluation stage', 'government official', 'high government authority', 'non-agent certification and commitment', 'notification of interest', 'principal', 'principal staff officer', 'procurement agency officer' and 'armed services headquarters'. "The kickback takers rob the armed forces of the most advantageous purchasing terms in their weapons acquisition," write the former air chiefs who command legendary reputations in the PAF. In an obvious reference to the fact that the corruption is not confined to the "commission agents" alone but reaches out broadly into the higher echelons of officialdom, both civil and military, they state that "kickback takers...act as front men for those who siphon off millions of dollars from the nation's scarce defence resources. They also bring the armed forces into disrepute... and lower the services' morale and fighting spirit." "The amount of kickbacks had by the 1970s invisibly grown to several million dollars in each large contract..," the letter adds. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970812 -------------------------------------------------------------------- SSP, TJP leaders list causes for sectarian violence -------------------------------------------------------------------- Our Reporter LAHORE, Aug 11: Leaders of different religious groups on Monday presented their proposals for ending sectarian violence and factors responsible for its rise to Supreme Court Chief Justice Syed Sajjad Ali Shah. Appearing before the chief justice in connection with the suo motu proceedings on sectarian violence, the leaders appreciated the initiative taken by Justice Shah and expressed the hope that it would bear positive results. Representatives of the Sipah-i-Sahaba Pakistan, the Idara-i-Minhajul Husain and the Ittehad Bainul Muslimeen were heard by the chief justice for about eight hours in his chamber in Lahore in the presence of attorney-general, the Punjab advocate-general, the home secretary and the inspector-general of police. Foreign interference and the failure of authorities concerned in getting the terrorists convicted were the reasons hinted at by the religious groups before the chief justice. Talking to reporters after recording their statements, the religious leaders said youngsters could be prevented from joining militant organizations by timely conviction of terrorists. The SSP was represented by its patron-in-chief Maulana Ali Sher Haidri, president Sheikh Hakim Ali, general secretary Allama Shoaib Nadeem and Punjab president Maulana Muhammad Ludhianvi. The SSP leaders told newsmen that they had submitted in the court the cassettes and literature which carried derogatory remarks against the caliphs. They alleged that a neighbouring country was behind the mischief being carried out by the other group. They promised to cooperate with the government to restore peace if it withdrew about 150 'false cases' against the SSP workers, prosecuted those responsible for the death of the party's 500 workers and banned all literature imported from the neighbouring country. The SSP leaders said they had signed a pact with the TJP which was sponsored by the chief minister with an open mind. However, the TJP leaders backed out of the agreement, they maintained. They said any person who did not respect the companions of Prophet (PBUH) was a infidel. However, they denied having given a fatwa for killing Shias. Allama Muhammad Husain Akbar of the Idara-i-Minhajul Husain said he had informed the CJ that harmony between the two groups was disturbed in 1985 when the Shias were termed as infidel (kafir). It would be very difficult to resolve the sectarian issue unless the SSP stopped calling them infidel. He stated that Shias had no problem with other Sunni groups. He pointed out that the TJP leaders and ulema from other sects had been sitting together outside the chief justice chamber. Allama Akbar blamed a Middle East country for fomenting sectarian strife and named five books which, he said, were printed there and carried objectionable material. He submitted before the court a list of about 20 Pakistani books carrying 'objectionable material'. He termed the chief minister's effort to manage an agreement between the two groups positive. However, he said, the SSP leaders did not shake hands with the Shia leaders at the meeting. The members of the Ittehad Bainul Muslimeen said they pointed out six causes behind the sectarianism and suggested solution to the chief justice. They stated that extremist elements in the intelligence agencies, foreign agencies, partial investigating officers and foreign aid to religious institutions was a cause of the present violent trends in the country. The government should courage to raid the stores containing illegal arms. The Ittehad was represented by Jammat Ahle Sunnat's Allama Hamid Ali Kasuri, Jamaat-i-Islami's Maulana Abdul Malik and Maulana Fateh Muhammad and Allama Sarfraz Ahmad Naeemi of Jamia Naeemia. They submitted before the court a seven-page document containing their suggestions. It is stressed in the document that Islam did not allow revenge on personal level. The courts only had the right to convict a person. A government that could not guarantee protection of life and liberty to its citizen had no right to remain in power, mentioned the document which was signed by the TJP leaders also. The joint communique stated that sectarian difference should not lead to the killings of members of the opponent groups. Justice Shah had wanted to record the statement of the Sipah-i-Muhammad Pakistan (SMP) representatives but he was informed that their leaders were in custody. After the proceedings the chief justice issued notices for August 18 to Sipah-i-Muhammad's Salar-i-Aala Allama Ghulam Raza Naqvi and Maj (retd) Syed Ashraf Ali Shah, who is head of a group of SMP, TJP leaders Allama Iftikhar Husain Naqvi and Allama Hamid Ali Moosvi. The next proceedings would be held in Islamabad. Punjab advocate-general Khwaja Muhammad Sharif submitted the list of lawyers who fell victim to the current wave of sectarian violence. Home secretary produced a copy of the agreement reached between the sectarian groups recently in the presence of Punjab Chief Minister Shahbaz Sharif. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970816 -------------------------------------------------------------------- Nawaz asks US to stop pressing on N-issue -------------------------------------------------------------------- Our Correspondent NEW YORK, Aug 15: Prime Minister Nawaz Sharif has asked Washington to stop pressurising Pakistan on the nuclear issue saying: "We consider the issue behind us, and the Pakistani nation does not want to discuss it". In an interview with the New York Times on the eve of golden jubilee celeberations of the country's independence, Mr Sharif said: "I don't think there is any point in exploring the past any more. It's time to discuss the future." The Times said Prime Minister Nawaz Sharif was forthcoming about Pakistan's relationship with India and spoke warmly of Indian Prime Minister I.K. Gujral, but asserted that unless the "outstanding issues" between the two countries were settled no progress could be made in improving relations. He said: "in 50 years we've had our ups and downs like any other nation in the world, nevetheless Pakistan is not a failed state. It is much better than it was 20, 30, or 40 years ago." "Pakistan has done better than its detractors allow, in some respects better than India", he added. Commenting on the political scene in Pakistan Mr Sharif told the Times that former prime minister Benazir Bhutto was a spent force, "even her supporters believe that" he added. The Times said " Sharif, 47, is a politician of a special kind in Pakistan. He served one of the military governments that have ruled here for nearly half country's existence, then outlasted the military ruler who sponsored his entry into politics, Gen. Mohammad Zia ul-Haq, winning two of the four elections since the general's death in 1988. After his landslide win earlier this year, he is considered the most powerful civilian prime minister Pakistan has had." The Times said on nuclear weapons, Mr Sharif was equally firm. For years, American negotiators have pressed Pakistan to eliminate, or at least to freeze, its nuclear weapons programme. Pakistan has generally been evasive, saying that it will only agree if India takes similar measures with its own nuclear weapons programme, something India has refused. Last year, this standoff led India to refuse to sign an international treaty banning all nuclear tests, a stand that effectively killed the treaty. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970816 -------------------------------------------------------------------- Bill to turn Pakistan into police state: lawyers -------------------------------------------------------------------- Shujaat Ali Khan LAHORE, Aug 15: The new special law has all the potential to convert Pakistan into a police state, according to leading members of the Bar, who are to meet here on August 18 to consider launching a protest campaign for its repeal. Several key provisions of the law, besides being contrary to the known position of the superior judiciary as articulated by the Pakistan Law Commission and the Chief Justices Committee, are in direct conflict with the articles of the Constitution and elemental norms of natural justice. They are likely to be struck down as ultra vires if challenged in the superior courts as contemplated by certain parties and individuals. The proposed August 18 meeting of the members of the Pakistan Bar Council, the Supreme Court Bar Association, the Punjab Bar Council, the Lahore High Court Bar Association and the Lahore Bar Association will chart out the legal fraternity's course of action in this regard. The lawyers particularly cite Section 26 of the August 13 Act, which makes an accused's confession before police admissible in evidence, repugnant to the Criminal Procedure Code, the Qanun-i- Shahadat Order and Articles 13 and 14 of the Constitution. Article 13 (B), which prohibits self-incrimination, declares that no person shall, when accused of an offence, be compelled to be a witness against himself. Article 14 (2) says that no person shall be subjected to torture for the purpose of extracting evidence. The law of evidence, originally and after its revision in accordance with the injunctions of Islam and promulgation as the Qanun-i-Shahadat Order in 1984, specifically denudes any statement or confession made by an accused before a police official, howsoever high, of any evidentiary value. Similarly, the Criminal Procedure Code bars the prosecution from taking an accused to the witness box. Section 340 (2) of the Cr.P.C. creates an exception to this rule but that, too, only to enable the accused to make a statement on oath in his defence. Even when appearing as a witness in exercise of the right conferred by Section 340 (2), the accused may confine his testimony to his defence and refuse to answer any question on oath. With this cast-iron immunity available to an accused at a judicial forum, he should enjoy greater protection against self- incrimination while in the custody of police. It was to prevent police coercion and torture that custodial confessions were outlawed as evidence. In fact, 'confession' and 'custody' are mutually exclusive. Confession means a voluntary admission of guilt which can only be made by a free man and not by a prisoner of the prosecution. Made validly before a judicial authority, it facilitates the trial. Another obnoxious provision of the Act is its Section 5 that empowers police and other agencies to shoot a person 'likely' to commit a terrorist act. The police force is already notorious for extra-judicial killings and with this new licence, they will prefer to kill rather than embark on the arduous process of investigation and prosecution and expose their lack of professional skill. The force, which is regarded as 'corrupt to the core' by no less a person than the country's chief executive, shall also have the arbitrary power to search and arrest without warrant and take possession of 'any property' or weapon 'likely' to be used in any act of terrorism. The word 'terrorism' has been too broadly defined to leave any significant offence out of the schedule. The list of scheduled offences can be further widened to transfer the jurisdiction of ordinary courts to the newly-created special courts. An unscheduled offence committed in the course of commission of a scheduled one or independently by the same accused shall also be exclusively triable by the special court. The special court judges are to be appointed in consultation with the chief justices concerned and 'consultation' will have to be 'meaningful' in terms of the Supreme Court judgment in the Judges Case. But it is still a far cry from the judiciary's call for appointment of special judges from among the regular judicial cadres. With their tenure, remunerations and other terms and conditions of service to be decided by the executive, the special judges will not be a part of the judicial hierarchy. They will remain vulnerable to executive pressure and this militates against the independence of the judiciary, mandated by another provision of the Constitution. The jurisdiction of special courts has been made exclusive but the power to bring an offence within the purview of the special law will rest with the police. There have been cases in the past wherein, for reasons better known to it, police displayed its forensic skill to interchange scheduled and unscheduled offences. The power of assignment of cases and their transfer from one special court to another shall also effectively rest with the executive. The requirement of oath on the Holy Quran 'at the commencement of proceedings' for Muslims and by non-Muslims in accordance with their faith shuts out the Ahmedis or Qadianis from appointment as special judges because they will not be able to take the Quranic oath. The law confers extensive powers on a force known for misusing its authority on its own and at the behest of the government. While real terrorists may still remain at large, the axe may fall on political opponents. The mere threat of being charged with a scheduled offence will be sufficient for any innocent citizen or ordinary offender to yield to police blackmail. The measure comes amidst a suo motu supreme court inquiry into sectarian violence and betrays a mindset more interested in harsh, short-term administrative measures than in finding the real causes of the strife and long-term solutions within the normal legal framework.

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BUSINESS & ECONOMY

970810 -------------------------------------------------------------------- Economic reforms fail to attract DFI -------------------------------------------------------------------- Staff Reporter LAHORE, Aug 9: Board of Investment (BoI) chairman Humayun Akhtar has admitted that various economic reforms and incentives announced by the PML government have failed to attract direct foreign investment. The government was prepared to give more fiscal incentives and could evenchange the constitution to meet the concerns of foreign investors about their investment, he told businessmen at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday. "Portfolio investment has started coming into the country but no direct foreign investment is forthcoming so far. It appears as if the foreign investors are waiting to see if we can achieve our targets and succeed in implementing the reforms," Akhtar said. "The heavy mandate given by the people to the PML has ensured political stability in the country, but economic stability is yet to be attained," he told the businessmen, whose leader indirectly criticized the government for the continually deteriorating state of law and order in his welcome address. Akhtar said the government intended to announce its investment and industrialization policy in September and restructure the BoI according to it. "It'll be a simple policy for at least next five years." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970811 -------------------------------------------------------------------- Is the boom in stock prices justified? -------------------------------------------------------------------- Dr. Farrukh Saleem Political violence, factional terrorism and sectarian killings continue in Karachi and Lahore. The national treasury must make debt payments of more than $2 billion by the end of the calendar year. The government's supply side policies may not be able to meet IMF's targeted deficit ceiling. The potential of a substantial shortfall in revenue collection remains high. The federal government seems awfully reluctant to downsize. Then there is the persistent trade deficit of $250 million per month and the current account deficit of $4 billion per year. MRJ Securities has already defaulted and Zafar Moti, a prominent Karachi stock broker, was removed by the Corporate Law Authority (CLA) for unprofessional conduct. The top bosses of all the three stock exchanges, in the meanwhile, are engaged in a fight of a lifetime with the CLA over the restructuring of the country's stock exchanges. The other side of the coin is: the Karachi Stock Exchange's KSE-100 Index which stood at around 1,350 in the October of 1993 has risen by a mere 48 percent over the past nearly four years to a current level of around 2,000 whereby the earnings of companies that form the Index have grown by an average of 100 per cent over the same 45-month period. Over the long haul the increase in stock prices would have to match the increase in corporate earnings. After all, stock prices are nothing but discounted future corporate earnings. It does not necessarily indicate that stock prices at the KSE are about to take a massive leap upwards, but rather that a gradual increase in stock prices is justified on the basis of the strong growth in earnings. In addition to the above, the Nawaz Sharif government has increased personal income tax exemption and reduced corporate income tax rates from 36 per cent to 30 per cent. Tax rate for the banking sector has been cut from 58 per cent to 55 per cent and the 10 per cent regulatory duty has been abolished. Ceiling of import tariff has been reduced from 65 per cent to 45 per cent and there has been an impressive cut (in real terms) in the defence budget. Duty on plant and machinery has generally been reduced to 10 per cent. Excise duty on bank loans has been withdrawn and cost of capital is expected to come further down in the near future. Under the new scenario, corporate earnings of major KSE-listed companies are being estimated to increase by a respectable 27 per cent in 1997 and a remarkable 32 per cent in 1998 (see chart) beating almost every regional market including the Bangkok Stock Exchange, the Kuala Lumpur Stock Exchange, the Jakarta Stock Exchange, the Bombay Stock Exchange, and the Manila Stock Exchange. According to another report published by the Economics Department of ABN-Amro Bank: "One of the strongest signals that Nawaz Sharif's government has sent out since coming to power is its formal endorsement of the autonomy of the State Bank of Pakistan (SBP)". >From an international perspective, investor confidence appears to be turning positive. The ESAF's finalization would postpone the default hypothesis by a minimum of two years and IMF's nod of approval would clear further multilateral funding and other bilateral lending. Then there is the potential of an improvement in Indo-Pak relations enabling a further cut in defence in addition to the huge trade potential between the two ideally located natural trading partners. Foreign fund managers have once again, after a good four-year absence, begun looking at the KSE quite favourably. Considering that the Thai Baht, Philippines Peso, Indonesian Rupiah, and the Malaysian Ringgit are all in a state of a severe shock, the Pakistani Rupee has been exhibiting some unusual strength. Foreign institutional investors, scared of the depreciation risk, may eventually begin diverting additional funds away from Thai, Philippine, and Indonesian stocks and more towards Pakistani Rupee-denominated securities. On the American front, the U.S. Senate has now allowed the crucial OPIC insurance coverage to U.S. companies interested in investing in Pakistan. The U.S. government has also withdrawn its notice sent earlier to Pakistani exporters of combed cotton yarn. These steps may soon begin attracting portfolio investment from American fund managers followed by direct American investment into our industrial sector as well as infrastructure development. >From a local perspective, a relatively stable rupee would induce conversion of dollar accounts for stock market investments. Property investors have already begun convincing themselves of investing into the Karachi Stock Exchange. A business-ffiendly government, sooner rather than later, is bound to turn business sentiments around. To be sure, no professional expects that it will be all the way up for the KSE here onwards. Stock markets almost never move in a straight line. One can be sure, however, that over the following couple of years, the correlation between the increase in stock prices would be fairly close to the increase in corporate earnings. As corporate earnings of major Pakistani publicly traded entities like PTC, PSO, Hubco, Southern Electric and Fauji Fertiliser are expected to grow strongly. Their stock prices would eventually catch up as well. That does not mean that whoever buys KSE-listed scrips would be a millionaire the following month, but what that means is that stock prices on the Karachi Stock Exchange have lagged behind the earnings growth of the companies listed on the exchange and also that long-term investors could expect to reap rewards from this mismatch between now and the year 2,000. To be certain, there are going to be surprises along the way. The Government of Pakistan (GOP) would not always be able to satisfy the IMF and the tranches would occasionally be withheld. The pace of financial sector reform is expected to be slow. Privatization will also be slow and there would be accusations of lack of transparency. The government would not be able to cut its expenses as per its own commitments. The government would not be able to achieve its revenue collection target either. The year-end budgetary deficit would, therefore, be higher. GOP would also have to borrow in addition to the self-imposed budgetary limit. The KSE-100 Index would naturally respond, but then who ever said that stock markets are for the faint-hearted. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970811 -------------------------------------------------------------------- Normalisation of trade with India being scuttled? -------------------------------------------------------------------- Ihtasham ul Haque ALL RECENT efforts by the PML government for starting formal trade with India have once again been marred by vested interests and the decision to allow import of 14 new items from India continues to be the subject of harsh criticism despite clarifications issued even by Minister for Commerce and Investment Ishaq Dar. During the tenure of the two PPP governments, serious attempts were made to have full-fledged trade with India but no headway could be made in that respect mainly owing to strong opposition by the then Pakistan High Commissioner in New Delhi, Riaz Khokhar, now the Ambassador in the United States. Although there is no such opposition this time, some people within the establishment and a section of the print media are trying to scuttle the move. The issue of trade with India once again came into the limelight when the government decided to implement the World Trade Organisation (WTO) obligation by granting the status of Most Favoured Nation (MFN) to India and open up new business and trade avenues. India has already offered MFN status to Pakistan and is seeking the same in the light of the WTO requirements. However, the governments in Pakistan, irrespective of their party affiliations, failed to do so precisely owing to pressure by a strong lobby. During the PPP government, the ministry of commerce had decided in principle to have full-fledged trade relations with India but the matter was deferred when Riaz Khokhar reportedly used his influence in Rawalpindi and Islamabad. "The proposal is still very much there but awaits a political decision by the government," said an official concerned with the issue. He said Pakistan would have to normalize its trade relations with India as required under the WTO Charter and in view of the trade and economic climate prevailing throughout the world. The issue came to the forefront recently when the government announced its new trade policy that allowed India to export a number of new items to Pakistan, including tyres and chemicals. The move did not receive a favourable response from some influential quarters and things began to go sour for the government. As a result it was stated that the government had not yet taken any final decision about the issue and that India would not be granted MFN status until the Kashmir issue was resolved. "We cannot grant India MFN status, nor are we going to normalize trade with it," said Mr Dar. But his statement is considered a political one which does not necessarily mean that Pakistan could resist it for long in view of the changes taking place in the international arena. The issue had been in the focus for the last few years and in this period there has been some interaction between Indian and Pakistani traders who also visited each other's countries. Recently an Indian delegation came to Pakistan and it was broadly indicated that there would be formal trade between the two sides and that it was merely a matter of timing. Pakistan's position on the issue is not quiet strong because of its commitment to the WTO. And it was in this context that India twice made attempts to lodge a compliant with the WTO but Pakistan requested it not to do so, as Islamabad would soon be reciprocating India's gesture. But it is believed that Pakistan cannot postpone its decision for an indefinite period. Pakistan and India are already trading more than 800 items and 14 more have been included in the list. The issue of formal bilateral trade also got prominence when the two prime ministers met in Male during the SAARC summit. While they called for improving political relations, they also discussed matters of increasing trade and business relations between the two countries. The enthusiasm on the part of both Indian and Pakistani businessmen for expanding economic relations could be gauged from the fact that they have already established business contacts in Lahore and Haryana. This happened when the PPP government had decided to have in principle, full-fledged trade relation with India. A number of officials and independent observers believe that formal trade with India and grant of the MFN status to it would pose no threat to Pakistan. They maintain that both countries would benefit from business contacts and save precious foreign exchange which is currently being wasted in importing items from far-off places. Nevertheless, the stalemate on Kashmir remains. The unofficial dialogue between some former military and civilian bureaucrats and intellectuals of the two sides also calls for resolving the long-outstanding dispute. However, they did not make the opening of trade or the exchange of delegations between the two countries conditional on the resolution of the conflict. The key question now is whether the government would eventually succumb to the pressure exerted by the powerful lobby as the PPP government did. Some officials of the commerce ministry are of the view that the matter would have to wait for quite some time. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970811 -------------------------------------------------------------------- KMTP and Karachi's transport problem -------------------------------------------------------------------- S.M.H. Rizvi Karachi was a small city of hardly 100,000 people when the British provided a 10-mile diesel tram system besides the double track railway mainline connecting Karachi port with up-country. They also acquired land for two additional rail tracks up to Pipri where space for a large marshaling yard was also reserved. This shows that the British planners had very correctly planned that Karachi deserved a mass transit system 100 years earlier, but unfortunately we are still undecided today. The diesel-operated trams did serve the low and even middle income people of Karachi. Instead of upgrading these as recommended by the 1952 MRVP Karachi Master Plan and the 1974 Karachi Master Plan. These were unceremoniously uprooted, resulting in the present chaotic conditions and consequent astronomical economic losses besides huge expenses on law order problems. In August 1975, Herald reported "two deaths a day and an accident every hour." This caused deep resentment amongst the city dwellers which had increased from 400,000 in 1947 to about 4.5 million by 1975. The frequency of accidents continued to rise when in 1985, as correctly predicted by the 1974 Master Plan and the 1977 Rapid Transit Cell's report, as a result of the well-known Bushra Zaidi tragedy followed by the Quaidabad accident killing 30 people, the city was paralysed for several months causing huge socio-economic losses. This ultimately turned into a major law and order problem in Karachi on which billions of rupees must have been spent so far. These economic losses were reported to be of the order of Rs 1.5 billion for each day of inactivity perhaps on the basis of the city's contribution to GDP. Thus the total losses to the nation can well be imagined as these could be many times the cost of providing a modern Mass Transit System apart from the recurring losses of KTC and the Circular Railway (KCR), which took away huge subsidies during the last two decades. The KTC has since been wound up and the KCR is running two empty trains a day incurring further losses. The 1952 MRVP plan, the 1974 KDA's Master Plan and the early 1975 RTC report had recommended upgrading of the diesel trams and revamping of the existing rail system, adding a grade separated Metro System from the city centre to the outlying fast developing areas of North Karachi and Scheme No. 33, supported by Light Rail and improved buses to serve as feeders to the Mass Transit System. Besides these, the 1982 Justice Ajmal Mian and 1985 Masud-uz- zaman Commissions identified the absence of a mass transit system as one of the major causes of unrest in Karachi and consequent huge economic losses to the nation. Accordingly, on the recommendations of the Commission and the World Bank, KSDP was approved including a detailed mass transit study conducted from 1987 to 1990 which recommended a network of 87.4 kms of partly grade separated Transit Ways for use as Busway convertible to light rail by 2000 AD. It also recommended direct implementation as light rail in case a BOT Company could offer to do so. This Plan was approved by the government and the World Bank at various levels. The World Bank Aide-Memoirs dated October l6 to December 4, 1989 confirmed this. However, the World Bank did not offer any positive commitment of funds for implementation. This left only the BOT alternative for implementing a light rail system since no BOT Company was prepared to consider construction of the busway. Accordingly the BOT process was initiated in 1990 and was followed up in 1994-95 after preliminary designs were prepared by the French and American-Canadian joint venture consultants on two corridors (1 & 2) as also for the revitalization of Circular Railway and mainline, for which the design work was still to be done. In the first attempt, no proper BOT offer was received. However, in the second attempt for Corridor-1, three offers were received costing $1,100 million, $850 million and $ 580 million. A contract was finalized in January 1996 for Priority I corridor by the National Mass Transit Authority with a Canadian- Turkish- Pakistani Company Joint Venture (IMTC) in the presence of the prime ministers of Canada and Pakistan for $ 580 million including $230 million loan by the government. The loan was to be paid back (at 13 per cent interest per annum. The company was required to pay rental of the infrastructure and to operate the system for 30 years after which it would return the system to the government in working order free of cost, unless the lease/concession is extended by mutual agreement. It is understood that the financial closure of the BOT contract is pending as the Pakistan government has not yet decided to give a green signal and loan to the company, which has since been reduced to $160 million, whereas for Lahore, a 13 km light rail is reported to have been approved to be provided under the public sector, through a Japanese loan, Further, the motorway is being extended to Peshawar from Islamabad, These will add Rs 1 billion p.a. to the National Budget as toll subsidy for users besides cost of special police force. Apart from this, the distance between Islamabad and Peshawar is increased by 60 kms, which will increase the use of road vehicles which consume 10 times more fuel per ton-km compared to rail, adding to further economic losses. No doubt, Lahore represents the largest province of Pakistan, yet Karachi is the largest city and was the first capital of Pakistan by the Quaid-e-Azam himself, apart from the fact that Karachi is still financial and business capital and the only gateway of Pakistan, providing half of federal revenues and substantial contribution to the GDP. Thus any delay in the provision of a modern mass transit system as recommended by various commissions and promised by successive governments, including the present prime minister. Coming to the question of priorities of providing motorways and the Lahore Light Rail at the cost of further over-burdening the foreign and local debts instead of debt retirement. The BOT offer for Karachi Light Rail appears to be much more favourable, rather an ideal solution, and should not be allowed to be lost in political controversies. As a matter of fact such a BOT process may be initiated for all such projects instead of adding more debts, including for Lahore, Islamabad and Faisalabad Light Rail Systems and the highway/motorway schemes under consideration. Having been associated with the Rapid Transit Study of the Federal Ministry of Communications during 1974-77, I would have preferred a network of proper Metro or Heavy Rail System, partly in the sub-way. However, the light rail system offered with three articulated electric operated carriages capable of carrying 35,000 to 45,000 passengers per hour in one direction (pphd) against the present 40,000 to 50,000 pphd demand in the peak hours, I think this as a good substitute, as subway cost could be much more due to Karachis high subsoil water and possible underground utilities, which would require shifting. Besides this, no BOT company has come forward to offer for such a scheme. As against this, the overall cost of a convertible busway could ultimately turnout to be much more in the long run, as the structural cost itself would be about 20 per cent to 25 per cent more than that of exclusive Light Rail structure to start with as costly flanged rails will have to be provided flush with the bitumen roam surface adding to the structural cost, besides a few additional beams to be provided for stronger deck to support moving bus wheels all over its width, and 50 per cent wider stations. Apart from this at the time of conversion to light rail the cost of vehicles and the allied system would be many times the present day cost while the cost of buses and their replacement every eight years during the 30 years period would be four to eight times the present day cost. The efficiency and safety of the bus operations by local bus operators on the Elevated Transit Way based on the experience of the existing service and the KTC would still be questionable as compared to the Light Rail Operations under the umbrella of an international consortium lead by a Canadian company. In any case the capacity of the Busway to carry passengers is hardly 12000 to 15000 pphd. which is one third the capacity of LRT whereas the present travel demand is over 40,000 to 50,000 pphd. Thus a Busway would be far too over-saturated on the very first day and as such will invite scathing criticism from the public and possible accountability of the people concerned with the planning and execution of the Busway project. In view of the above facts the following conclusions can be safely drawn: 1. Subway cost would be five times higher than the Elevated Light Rail System satisfying the peak travel requirements beyond the foreseeable future. 2. Busway or Light Rail System at street level is impossible due to innumerable intersections and cross traffic, specially in the dense city areas. 3. In the long-run Two Lane Elevated Busway will be more costly as compared to a Light Rail besides being totally inadequate to serve the travel requirements of the main corridors of the city. 4. No BOT Company has come forward to construct a Bus-way Structure and operate buses to recover its cost and as such the entire cost of Infrastructure of Busway will have to be borne by the Government which has inadequate resources at its disposal. A Two Lane Busway, even with the best operating discipline as a Bus Convoy System will be almost impossible to achieve under the present capability of local operators, and as such could offer hardly 10,000 to 15,000 pphd travel needs against the present peak requirement of 40,000 to 50,000 pphd and will thus be.totally inadequate and over saturated from Day one besides being prone to accidents and hazards of Buses colliding and falling down the elevated structure, creating havoc in the city already in the grip of serious law & order situation.. It is thus clearly obvious that a Busway and even the scheme to provide air-conditioned buses would hardly scratch the surface as far as the overall transport requirements of Karachi city are concerned. However the AC buses could be helpful as feeders to the Light Rail Mass Transit in attracting the car users to switch to the Light Rail Mass Transit on Park & Ride System thus helping to minimize Congestion and Environmental Pollution on the busy city roads. In view of the above facts the BOT Contract for Light Rail which offers most of the funds except only Seed Money as loan would be the best choice if at all Karachi is to have a Mass Transit System and consequent chances of durable peace and environment for attracting investments by foreign investors. As a matter of fact a BOT Company may also be persuaded to consider Revitalization of the Western part of Karachi Circular Railway and Quadrupling of Main Line up to Pipri which would complete about 50% of the entire Mass Transit network and would also help to revitalize the freight movements to and from the Karachi Port by rail considerably reducing the current railway losses, and the heavy trucking through the city roads thus saving the cost of many flyovers & bypasses minimizing wear and tear and above all road congestion, accidents and the bulging national fuel bill. As a senior citizen associated with the Mass Transit Studies for the past 23 years and even the BOT process, I would, therefore, strongly urge the concerned authorities specially the worthy Prime Minster to seriously consider the above facts and give a green signal to this BOT project for a Light Rail System in Karachi thus ushering in a new era for the city and Pakistan while entering the 21st Century. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970811 -------------------------------------------------------------------- Trade policy moves from regulation to motivation -------------------------------------------------------------------- K.K. Suri The trade policy 97-98 is clearly the first credible effort that addresses truly the key aspects of export growth. It goes far beyond mere removal of procedural irritants and a catalogue of stock promotional measures, these in themselves not insignificant though. Historically, there used to be only an import policy which was really a foreign exchange budget for imports against scarce resources. With measured trade liberalisations, some ahead of WTO commitments, all that has changed, moving from regulation to motivation. Commerce Minister Ishaq Dar put it succinctly as he claimed that export-led growth is the objective of the government's economic strategy, through high-value added exports which would rectify the balance of trade and of payments, as well as increase employment opportunities. For the first time, the need for "reversing the anti-export bias" of the last 50 years is explicitly recognised. For the first time, a realistic assessment has been made that the main cause of decline in exports is massive shortfall in production. The real culprit last year was the steep fall in agricultural and industrial production, the latter showing an all-time lowest growth of 1.78 per cent in 96-97 versus 4.4 per cent in the preceding 95-96 and the historical average of about 6 per cent large scale manufacturing actually posted a negative growth of (-) 1.43 per cent. Such poor scale of production is inevitably reflected in exports sliding down to $8.26 billion from $8.71 billion in 95-96, no matter what promotions may be launched. The surprising thing is that the overall export decline was not steeper, because, as the export data stands, excluding raw cotton, the export of which in 96-97 was nominal at US $30 million worth, compared with $507 million a year ago, non-cotton exports last year were at par with those in 95-96. The conclusion must be that production has to increase for generating enough export surplus which alone will lift exports to reach the scaled- down target of $9.575 billion. Stress on economic policy The new trade policy, therefore, targets on increasing production in all sectors, particularly manufacturing, through a whole range of policy improvements in the fiscal, monetary and banking sectors. In that sense, we are really looking at a trade and economic policy, though the various policy dispensations impacting on export trade come from different institutions, namely, the Finance Ministry, the Central Board of Revenue, State Bank of Pakistan, commercial banks and others, besides the pivotal Commerce Ministry and its promotional arm, the EPB. The whole trade policy has thus to be viewed not in isolation but in conjunction with the precursor fast track reform packages of March and May '97 and the budgetary measures in the following June as well as the post-budget supportive steps in the area of bank finance. The prospect of easing interest rate under the Export Finance Scheme of the State Bank was already on the trade policy agenda and has been obviously a matter of close consultation between Commerce, Finance and the State Bank. All the concerned agencies are to dedicate their efforts for revival of economic activity, rehabilitation and financial restructuring of sick units that are still viable, increase in production and expansion in exports vital for reduction of trade deficit, improvement in balance of payments and ultimately retirement of foreign debt. Given the accepted need for speeding up production, the crucial question is the adequate availability of finance. This aspect is quite strongly treated in the new trade policy and the measures preceding and following it. In the March package of economic reforms that came in the shape of an unprecedented mini- budget approved by the National Assembly in early April, Finance Minister Sartaj Aziz said the export-oriented economic recovery programme was based on the strategy of export-led growth following the successful example of South and South East Asian developing countries. Tariff reforms The main plank of the wide-ranging reforms was the reduction in the maximum import tariff slab of 65 per cent to 45 per cent. To provide raw materials and machinery to the exporters at international prices, duty on machinery was reduced to a bare 10 per cent and zero sales tax, with total duty exemption if imported in customs bond, subject to export obligations, also for textile spinning industry if producting yarn of 30s counts or higher, obviously to reward higher value addition. Regulatory duty of 10 per cent on all imports was abolished and sales tax standard rate of 18 per cent (a few rates at 23 per cent) reduced to 12.5 per cent retaining the lower rate of 10 per cent for textiles and clothing. Personal income tax rates were halved and corporate / company tax rates reduced. Lower tax rats on export incomes are already available. Raw materials used mainly for export production were made duty-free, and a mechanism for input/output coefficients was envisaged to facilitate payment of duty drawbacks on exports within 14 days. These reductions in tariffs and para-tariffs, were designed to induce new investments. In the textile sector, and para-tariffs, were designed to induce new investments. In the textile sector, imports of 5000 shuttleless looms is already under way. The Minister gave assurance that adequate bank credit will be made available and maximum support will be given to the exporters. The assurances about greater and less expensive credit availability to the export sector and reducing the mark-up on concessionary export finance were duly redeemed, even beyond expectations. Focusing on easy finance for the credit-starved export sector, the State Bank made a major modification in the concessionary Export Financing Scheme (EFS). The refinance funds, instead of placement in special deposit account of commercial banks, were made available to banks to help them step up export finance operations. Banks would no longer drag their feet on export finance needs. This was also the main agenda of the newly instituted Export Development Committee's first meeting on 17th May when the Governor of the State Bank, Dr Yakub, promised it will be the first priority of banks to provide export credit. Then the statutory liquidity ratio (SLR) of banks was reduced from 25 per cent to 20 per cent substantially increasing the lendable funds. Now, a weekly accounting is permitted allowing manoeuvrability from day to day. As a result of these measures that have come in waves, including the pace-setter withdrawal of 1 per cent excise duty on bank loans from 97-98, the commercial interest rates have started falling to a reasonable level of 16-18 per cent. To top it up, the interest on export finance has been reduced, for the first time, from 13 per cent to 11 per cent. This single step would give a tremendous support to exports by providing cheaper working capital, though still dearer than in most Asia-Pacific countries. The latest news is that the extension in repayment period for EFS loans, from 150 days to 180, which had just lapsed last fiscal and was made available only for exports of engineering goods, hand-knotted carpets and computer software has been reintroduced for the monitoring year 97098 for exports of all value-added textile and leather made-ups, cutlery and surgicals, handicrafts, fish and tobacco/cigarettes. Correspondingly, the export obligation against loans on past performance would be reduced from 2.4 times to 2.0 times. Several new export products have been entered for concessionery export finance, in particular cotton yarn, if 30 counts or higher, the exports of which have been suffering lately due to unequal competition from India and China. Export incentives The new trade policy catalogues a good number of new export incentives, meaningful tariff reductions for raw materials and intermediates for export production and procedural adjustments to reduce bureaucracy, that hampers exports and impinges on the time of the exporters that should better be devoted to production. One aspect needs particular mention. Duty drawbacks on exports are an important part of cash liquidity of exporters and must be made available in the shortest period after exports. The earlier provision of payment within 14 days has not worked. Now, 50 per cent payment in three days and rest after audit is not wholly satisfactory. Similarly, refund of sales tax at 50 per cent initially and the rest later is also causing difficulty, besides the new documentation requirement which is difficult to comply. The scheme of no duty - no drawback will also not be workable, because there would always be some duty-paid inputs in export production, and, in any case, it would not cover the commercial exporters. The modality of having standard and input / output norms as the basis of standard drawbacks remains the most efficious. The future agenda is quite clear. For increasing production, further easing of bank credit is absolutely essential to make our exporters equally competitive visa-vis other Asia-Pacific suppliers who have access to fund sat much lower costs. The commercial rate needs to be brought down to no more than 14 per cent. For export finance, the next step should be 8 per cent Machinery and material should be allowed freely without any hindrance. If machinery imports have to be taxed at all, a scheme can be devised to provide duty drawbacks in proportion to depreciation relatable to export production. This years' trade policy envisages financial support upto Rs 150,000 to individual companies for achieving ISO-9000 certification. This is great. ISO-14000 is also getting into greater prominence and will be required more and more for successful export marketing. This should also be encouraged through financial support. These will be the real trade policy issues of the future. The WTO-related trade liberalisations have already started for the third year going, intensifying competition on quality and minimum standards. Alongwith production, new marketing techniques will have to be adopted. The best approach will be to go for joint ventures with reputed producers world-wide. International consultant could help. The current exercise, Intechmart-97 for Pakistan, launched by UNIDO/EPB/FPCCI could and should be a turning point. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970814 -------------------------------------------------------------------- Fresh package of incentives for EPZs likely -------------------------------------------------------------------- Aamir Shafaat Khan KARACHI, Aug 13: The investment policy is expected to provide a fresh package of incentives to export processing and free trade zones located in various parts of the country. Sources said proposals submitted by the Export Processing Zone Authority (EPZA) for the revitalization of zones are now under active consideration of the Board of Investment (BoI) and may be included in the investment policy due next month. Chairman, EPZA, Syed Muzzaffar Ali Shah, told Dawn on Wednesday that there are at least 16 proposals awaiting approval compared to 17 incentives now available for the investors. "The government may pick up some of these proposals," he added. The EPZA has proposed to allow project financing by banks and local development financial institutions (DFIs) besides giving tax exemption on profit of DFIs and banks, he said. "There has been no progress in export processing zones," he said attributing the lacklustre performance to inconsistency in policies. He added the government is now committed to attract more investment and it is hoped that the new investment policy will come out with more incentives. He added the authority has geared up its efforts to make EPZs at par with foreign zones and for this purpose computerization of EPZA will be done shortly coupled with training of people for investment and marketing strategies with changed attitudes. Muzaffar said the authority will persuade multinational companies (MNCs) and foreign countries to set up their own industrial units in export processing zones. Proposals submitted by the EPZA to the government for inclusion in the investment policy are as follows: A five to seven year tax holiday from date of production may be allowed as new investors are being provided tax holiday up to the year 2000. The units at the EPZs be allowed to source capital goods from domestic leasing companies which can import the goods free of duty on their behalf and supply them. Exporters may be treated at par with tariff area counterparts for freight subsidy on certain items. The Central Board of Revenue should simplify the procedure for disposal of duty free vehicles imported by zone investors. Customs functionaries in the zone may be placed under EPZA and export processing zones may be allowed to function within the ambit of the EPZ Ordinance (1980). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970815 -------------------------------------------------------------------- PTCL finalizes $250m securitization deal -------------------------------------------------------------------- Bureau Report ISLAMABAD, Aug 14: Pakistan Telecommunications Company Limited has managed 250 million dollars securitization deal on Thursday in New York by concluding an agreement with the Citibank and the ABN Amro Bank. According to local PTCL office the deal which has been finalized is based on the concept of securitization of PTCL future receivables from the major US and British carriers like AT&T, Sprint, British Telecom, MCI, Mercury and Deutch Telecom - the major telecoms operators of the world. The PTCL foreign exchange transaction has the longest tenure of six years and is one of the unique transactions which has ever taken place in South Asia. The deal is of special significance for as it has been concluded on the occasion of the 50th anniversary of the country. The deal of six years' tenure has been possible because of the creditworthiness of the PTCL and it is a major development in the history of capital market of the country, officials of the organization said. The transaction has created a lot of enthusiasm amongst the qualified foreign institutional buyers from US and Japan who have taken keen interest in the deal and made long term commitment in the financial and corporate sector of the country. This capital market transaction from PTCL has provided diversification in the borrowing arena of Pakistan and will help in improving credit rating of Pakistan in view of the interest of qualified institutional investors and involvement of world class operators like AT&T, BT, Sprint, MCI etc in the transaction. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970816 -------------------------------------------------------------------- Govt decides to carry on with Keti Bunder plan -------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Aug 15: The government has withdrawn its decision to scrap the 1320mw power project of Consolidated Electric Power Asia (CEPA) to be constructed at Keti Bunder, Dawn officially learnt. "The legal obligations of both the government and the CEPA remained unchanged," Secretary Water and Power, Javed Burki told Dawn on Friday after meeting a visiting delegation of the Southern Company an American concern, which has recently purchased CEPA shares from Hopewell Holdings Limited of Gordon Wu. The delegation after negotiation with the government has left and the Power Purchase Agreement and other agreements signed with CEPA remained intact, said Burki. The government's decision to cancel the letter of support issued to CEPA by the previous government of Pakistan Peoples Party for setting up 5280mw power project was announced on the floor of National Assembly by the Federal Minister for Petroleum and Natural Resources, Chaudhry Nisar Ali who then, was also holding the portfolio of ministry of water and power. In the first phase of the project the CEPA was allowed to set up two power units of 1320mw capacity at the imported coal. "These agreements cannot be cancelled unilaterally," said Burki. However, according to some inside sources the government has reversed its decision as the Southern Electric which is the biggest power generation company of the United States pulled some official strings. The CEPA officials contend that the financial close of power project has to be done simultaneously with financial close of a 185km long 500kv double circuit transmission line from the site of project at Keti Bunder to Jamshoro. The previous government had prepared a schedule for inviting bids for construction of transmission line according to which the financial closure had to be done by March 1997. A deep sea port had also to be constructed by CEPA at Keti Bunder. Ministry of communication had informed the Cabinet in March this year that CEPA had not conducted any study on the project of sea port. However, the CEPA people said that they were ready to carry out the study and undertake dredging at the port provided the government would meet its contractual obligation of awarding the contract of transmission line. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970816 -------------------------------------------------------------------- Investors react positively to passage of anti-terrorism bill -------------------------------------------------------------------- Staff Reporter KARACHI, Aug 15: Leading shares came in for active short-covering at the lower levels on Friday, both from the local and foreign investors, on news that the National Assembly has passed the anti-terrorism bill to check activities of terrorists. The index was quoted higher by 21 points at 1,919.07, as the heavy weight in it recovered smartly in the morning session. There was an air of optimism in the rings as initial reaction to the passage of the bill was more than positive but owing to weekend considerations the buying support remained confined to most of the safe havens, said a floor broker. How the newly passed bill works only time will tell but it provided the much needed boost to investors who were yearning for peace for the last three years, dealers said. The market sentiment in part was also influenced favourably owing to relative calm on the sectarian front and no incident of terrorism during the post-bill session, they added. The broader market, however, stayed weak as investors were not inclined to make fresh commitments owing to two official holidays ahead. Losing shares maintained a strong lead over the advancing ones at 148 to 63 with 54 shares holding on the last levels, out of the total 265 actives which came in for trading. Price changes on all the counters were fractional as investors were not inclined to make bigger commitments partly because of weekend considerations and partly to the absence of bargain-hunters. However, institutional traders were active on a number of counters which in turn evoked modest interest from some of the genuine investors. "The market largely owes its strength to strong selective foreign buying and until it is there there is a possibility of a strong turnaround," most dealers believe. Analysts said the immediate impact of the terrorism bill appeared to be positive on stock trading as leading investors are back in the rings though on selected counters. Some others said it was largely the strength of Hub-Power and PTCL on strong short-covering by leading foreign funds at the lower levels which put the index back above the psychological barrier but the market's overall performance was weak. "It is too early to say something about the direction of the market during the next week as it is dependent on external events," they stated. Bulk of the short Friday session trading was confined to Hub-Power, PTCL and ICI Pakistan, which received massive battering during the last few sessions as the same set of investors covered positions at the lower level who earlier took profits. Owing to a short Friday session, the traded volume fell to 42 million shares as compared to 60 million shares on Wednesday. PTCL traded higher by 65 paisa at Rs 41 on 15 million shares followed by Hub-Power, sharply higher by Rs 1.70 on 10 million shares, and ICI Pakistan, up 40 paisa on 8 million shares. Dewan Salman and FFC-Jordan Fertilizer followed them, up 80 paisa and 35 paisa respectively on 2.500 million and 1.800 million shares each. Lever Brothers Pakistan came in for renewed selling on news of fall in interim profits, losing another Rs 35 at Rs 975, followed by Singer Pakistan, Siemens Pakistan, NDLC, Grays of Cambridge and Spencer Pakistan, which fell by one rupee each. Engro Chemicals, which has been under pressure for the last couple of sessions owing to below market expectation interim dividend of 25% and lower half yearly profits, recovered Rs 2 and so did PSO and National Refinery, rising by one rupee each. Other actively traded shares were led by Schon Bank, up 40 paisa on 0.111 million shares, followed by D. G. Khan Cement, unchanged on 0.108 million shares. All other transactions were below 0.100 million shares owing to slack demand. DEFAULTERS COUNTER: No deal was reported on this counter for the first time since trading started on August 6, as investors were not inclined to make fresh commitments owing perhaps to weekend considerations. ------------------------------------------------------------------- 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. 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EDITORIALS & FEATURES

970810 -------------------------------------------------------------------- The great betrayal -------------------------------------------------------------------- Ardeshir Cowasjee HAVING fulfilled his life's ambition, on August 7, 1947, Mohammad Ali Jinnah flew from Delhi to Karachi. Fifty years ago to the day, on August 10, 1947, he painstakingly worked on the speech he was to deliver the following day as president of the first Constituent Assembly of Pakistan. This speech of August 11, 1947, was his creed. It is much quoted, bits of it trotted out by all and sundry on every possible occasion, at each hint of disaster or unrest or persecution, but never once has it been honoured or adhered to by any man who has subsequently had anything to do with the leadership of this country. His priorities were correct, his apprehensions well-founded. He started off by defining the first duty, the primary duty, of any government of any country - "to maintain law and order so that the life, property and religious beliefs of its subjects are fully protected by the State." He moved on to what he described as the "biggest curses" afflicting the sub-continent - curses suffered by other countries but, as he said, "our condition is much worse." The curses: bribery and corruption. Poison, he said they were, to be "put down with an iron hand." Then came blackmarketing, and the great evil of nepotism and jobbery, an evil he stated he would not countenance. As for the division of India, he was convinced that there was no other possible solution. A United India could never have worked. He urged his people to forget the past, to bury the hatchet, to work together no matter to which community or caste or creed or colour they belonged. When each man is an equal citizen of the state, with equal obligations, rights, and privileges, then only will progress be inevitable. In his Pakistan, said Jinnah, there must be no majority or minority communities, all will be but one people. The fragmentation of India into multiple sects and creeds was the cause of its persistent failure to achieve independence. Had the peoples of India been united into one sole people, they would not have been continually subjugated. The new Pakistanis of the new nation must learn from past foolishness that caused such dire strife and division. Then came the core of the speech, the core of his creed that he set forth that day. To his countrymen he said: "You are free; you are free to go to your temples, you are free to go to your mosques or to any other places of worship in this State of Pakistan. You may belong to any religion, caste or creed - that has nothing to do with the business of the State." "Keep that in front of us as our ideal," he urged his legislators. Justice and fairplay, were to be their guiding principles, the watchwords of their ethics, as they were his. During the eleven months he lived thereafter, dying of tuberculosis, he did whatever he could to see that lasting institutions were built in the country he had made. He failed, for want of time and for the competence lacking in his followers. The men he had with him and the men he left behind were not men such as he. Their minds were set, visionless. Devoid of largesse of spirit, they succeeded in only doing everything they warned them not to do. With prescience, Jinnah predicted that each successive government would be worse than its predecessor. President Farooq Ahmad Khan Leghari and Prime Minister Nawaz Sharif declared that on this August 14 they would address the nation from the podium of his stolid mausoleum. However, heavily guarded as they are, the anarchy that prevails in the city has made them change their minds. They will now merely drop in, offer a hasty fateha and, hopefully, seek Jinnah's forgiveness, and then drop out. What the Founder of this country will tell them, from the depths of his tomb, they will not hear: You, all of you who have ruled, led, and administered the state of Pakistan, have collectively and dissolutely broken faith with your people. You have betrayed both them and me. Neither surprised nor confounded am I now, for long ago I fathomed your genius (with hindsight, I now realize how exceedingly well). It was because of this failing that I deviated from my initial adherence to the concept of one nation, and set myself the task of carving out a separate homeland for you, a territory for you to tend and nurture, in which you could not only survive, but flourish, and build it into a country your successors would be proud to call their homeland. Given the circumstances and my short lease of life, I did the best I could. It will serve no purpose for me now to recount the multitude of your follies, your sins of commission and of omission, or your losses. The Master Referee exonerated me long ago. I rest upon my laurels. You, on your part, failed. You made no attempt to do better than you have done - you blundered along, robbing and looting, losing half the country, drowning in debt and corruption, lowering in the eyes of the world yourselves and the people you have purposefully kept in abject poverty and ignorance. You, the false leaders, the men of straw, have made it a practice to remember me, but you remember me as I was not, as I never was; you remember me solely as you find it convenient or politic to remember me. You deny that I was a man free of bigotry, liberal, tolerant, progressive, endowed with political dexterity and a good deal of common sense, not given to flights of fancy, that I was a normal human being with faults, foibles and failings, that I was a man with the strength to take upon himself a mission which fortune and fate permitted me to accomplish. You conveniently forget that having done so, when my time ran out I died with much apprehension about what I was leaving behind, I died with little or no trust in those in whose hands I was bequeathing my legacy (though I had but few regrets for what I had done). I do not wish to be sanctified and canonised, but I do resent being misquoted and misunderstood. I conceived and created a nation-state with the steadfast intention that it should be forward-looking, democratic and secular. Bigotry, theocracy, intolerance, hatred - they played no role in my ideology. At the very outset, three days before the countdown, I unequivocally and firmly declared this in my speech to your first Constituent Assembly, which I now feel fell on deaf ears. But, yet, a distorted, censored version of this speech was given to my official biographer, Bolitho, for his book commissioned by the government. Whether you like them or not, whether they suit you or not, whether they be too liberal, humanitarian, tolerant and progressive for your warped minds and spirits to grasp and accept, these words of mine spoken that August day, embody my faith, my testament. You have negated both. What is on the ground in my country today, a country rent by sectarian and ethnic killings, by intolerance and bigotry, by discriminatory laws? Never for a moment did I think that in the nation I created there could be an iniquitous law that has converted into a minority an entire community that was part of the majority, a law which prohibits, on pain of three years imprisonment, the members of this community from reciting Kalima Tayyaba. What are you celebrating on this 50th birthday of the nation? Anarchy? Or the fact that you are left with only half the country given to you in 1947? In this half then you were 35 million; today you are bursting at the seams with 140 million. Of these, 40 million live below the poverty line, 70 million have no access to safe drinking water, 75 million are deprived of health facilities, 95 million survive with no basic sanitation, 0.8 million newborn die each year, many from malnutrition. And yet the population growth rate remains at 3 per cent, plus or minus, which means that by the year 2023, if the country survives as a whole, you will have to cope with a population of 300 million. How? In my time, we bought a dollar for three rupees; now you are paying forty-two. And how do you spend what you do not earn? An amount of 2.7 billion rupees has been allocated in the national budget this year for health, to treat the hundred million poor and needy. An identical sum has been allocated to the prime minister to enable him to live and work in his secretariat, with vain pomp and undeserved glory. Is this fair play? Is it ignorance that forces the people to tolerate such glaring inequity? Just one-third of that amount, a paltry 0.9 billion rupees, goes towards education - and this with your literacy rate of less than 30 per cent. Should you laugh or weep? Celebrate or repent? I can but lie here helpless, bitterly disillusioned by the travesty you have made of your country and of me. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970810 -------------------------------------------------------------------- Can child labour be defended? -------------------------------------------------------------------- Shahid Kardar THE world community has put Pakistan on notice as one of the worst offenders in the area of child labour. Some key export sectors are under threat of sanctions, unless some measures are taken to demonstrate the country's commitment to tackle this issue over an agreed time frame. What is the nature of this issue and to what extent can we as a nation continue to defend this practice? Children under 18, who form the majority of this country's population and currently make up around 9% of labour force, are the most vulnerable segment of the population. They cannot speak up for themselves and have to look towards their parents for protection and a humane and fair treatment so that they can lead lives free of malnourishment and ill-health and with access to educational and other developmental opportunities. The demand for child labour manifests itself in the form of wage employment in industry and commercial or home based family enterprises, while in the agriculture sector (with the highest incidence of child labour) the child helps out the family by doing odd jobs. A closer examination of industry employing child labour will reveal that the latter are found in the small-scale sector. The main reasons are: a) The absence of statutory protection for children in this sector as laws do not extend to family/household labour. Child labour is rampant in this sector, not only because children can be paid much lower wages than adults but also because they can be made to work for longer hours without protest and without additional remuneration. In a survey of child labour carried out in 1996 by the Ministry of Labour and the Federal Bureau of Statistics, almost half of the children were working for more than normal working hours and close to 25% were working for 56 hours a week. b) Children cannot form labour unions and turnover, in terms of a worker moving from one job to another, is rather low. They cannot only be dismissed when demand is sluggish, but can also be reprimanded and punished for failing to comply rigidly with institutions. c) Children can generally be relied upon to do dull, monotonous and routine-like tasks better than adults and are hence more suited to labour intensive jobs. Therefore, not only do children come cheap they also keep production costs low by making labour intensive manufacturing processes viable in comparison with more modern technology-intensive production techniques. Child labour has historically been portrayed as an economic issue on the plea that the poor lack both income and wealth. As a result, education of children gets a lower priority compared to more pressing needs of food and housing. By viewing it essentially as an economic phenomenon enough arguments can always be presented in support of child labour, thereby making its eradication from society difficult. There is no doubt that working children generally come from extremely poor families whose survival is critically dependent upon their children selling their labour from an early age. It is also true that the opportunity cost of children from poor families going to school is high, compared with the situation in developed countries where such costs are low because opportunities for illiterates are highly restricted. Such a justification of child labour is generally couched in more sophisticated jargon by presenting child labour as a part of the culture and an apprenticeship to acquire skills. Children attending schools, it is argued, are also a loss to the local economy and the household because they yearn for white collar jobs thereafter. One group even argues that some of these children will be pushed into sex trade, if child labour is eliminated. This is clearly an exaggeration. Sex trade is more visible and requires to be carried out in distinct identifiable locations, thereby making its supervision and monitoring relatively easier. Having presented the arguments generally put forward in defence of child labour let us now proceed to examine these issues. The first few questions that come to mind concern the share of the child's income in total household income (i.e., the extent to which his contribution is critical to the family's economic survival), the long term impact on the technical development, productivity and competitiveness of industry that depends upon child labour, and the sustainability and growth potential of an economy with a huge pool of an illiterate, poorly skilled labour force, etc. These questions are relevant because with globalization and increasing integration with the world economy it is difficult to believe that Pakistan can continue to rely on weak technologies and a low skilled, predominantly illiterate, work force to retain its competitive edge. Enough comprehensive studies have not been conducted on the impact on household incomes, if children were to attend schools. The available evidence on improvement in living standards on the basis of child earnings is weak. In fact, some studies have even concluded that the economic survival of the family did not depend upon the earnings of these children. Not only is the contribution small, in many cases the earnings of children are even used by male adults for financing the consumption of alcohol and drugs, rather than for ensuring the survival of the family. In other words, even if poverty drives many to send their children to work, child labour does not relieve poverty. In the 1996 survey, referred to above, a large number of children from families living above the poverty line were going to work to augment family income to improve its standard of living. Around 21% of children were members of households whose incomes were in excess of Rs 4,000 per month while 39% were from households earning Rs 2,500 to Rs 4,000 per month. Nevertheless, few would disagree that in most cases the employment potential at a later age in the life of a child who starts work at an early age is seriously affected. The health of many is affected by fatigue caused by long working hours, diseases such as tuberculosis and jaundice, or by the hazardous conditions at work. Some are even rendered unfit for work by accidents. The low-level skills that children acquire during early age condemn them to tedious and highly mechanical low paying jobs for the rest of their lives. Therefore, there is every reason to believe that the earnings that the child eventually has to forgo as an adult, either because of physical disabilities or lack of training and education that he could have acquired in childhood, is much more substantial than his/her earnings as a child worker. In other words, child labour tends to perpetuate poverty. Far from reducing poverty it condemns one generation after another to the cruel outcomes of child labour. More importantly, however, child labour has to be seen as a problem of institutions, social attitudes and sentiments rather than as an outcome of poverty. Not only did developed countries address these issues successfully way before their economies grew strong, this problem does not exist in many developing countries let alone have serious dimensions. Historical comparisons with countries like Sri Lanka, Vietnam, Kenya and China show that, provided political commitment to change "realities" is strong, even developing countries can successfully implement universal compulsory education and achieve reduction in the degree of child labour. The ILO rightly argues that presenting poverty as a pretext for ignoring universally accepted values is to argue in favour of the continuation of these reprehensible standards. Only social mobility can enable children to escape from this vicious circle of poverty, and this can only come from education. However, to the extent that poor access to education because of lack of schools is presented as one of the factors contributing to the flourishing trade of child labour the point is valid. Furthermore, even when the number of schools is adequate, the quality of education is invariably so poor and the learning environment for the child so hostile (unpleasant surroundings, dingy, damp and run-down classrooms, teachers missing from school, a harsh discipline implemented by a teacher who wields a stick rather freely, etc.) that neither motivates parents to send the child to school nor does the child find the conditions in school attractive enough to stay in the education stream. Therefore, the functional irrelevance and poor quality of schooling available to the children of poor households do provide a justification for parents preferring work to education for their children. Parents are happy sending their children to a school which functions regularly. Therefore, where schools do not function regularly either because of a lack or frequently absent teachers, and are, hence, not viewed as alternatives, parents even send children to work to prevent them from loitering around in the streets and getting into bad company, essentially because schools are not viewed as alternatives. At present the education system simply presides over a huge drop-out rate which pushes more children into the low-paying segments of the labour market. By making education attractive through improved curricula, better trained teachers, attractive surroundings, i.e. through an improved environment for education, would be the most effective way of progressively diverting children from labour. All this would, of course, require much larger allocations for education than the resources being committed today along with appropriate institutional arrangements for the delivery of good quality educational services. These mechanisms and procedures should be anchored in measures that ensure greater accountability of the service provider, the teacher to the service recipients, the households whose children are enrolled in the schools. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970813 -------------------------------------------------------------------- It's the chair that matters -------------------------------------------------------------------- Hafizur Rahman THE refusal of the PIA man in New York to hand over charge to his successor (he had secured a court stay order against his transfer) reminded me of a similar interesting, if not positively intriguing, situation that developed in a small town in Punjab some time ago. Maybe it has now been resolved, maybe the stalemate continues, but the details are indeed unique in a way. Whatever the position, it presents an insight into the dogged character of the Pakistani bureaucrat. When he sets his mind on something, especially the chair of office, it is not easy to dislodge him from his stand - or rather, from his seat. As the story goes, an officer of the Food Department refused to vacate his office and his chair (like the New York PIA chap) when transferred. His successor tried in vain to get into the chair, but the incumbent, waiting hopefully for cancellation of his transfer, would not budge. Not trusting anyone in such a vital matter, he kept the keys of the official jeep in his pocket, locked the telephone in a drawer of his table, came to office half an hour before opening time and left half an hour after closing time, and did not get up from the chair during this period. Not even to go to the toilet, as the newspaper reported. Thus was the indomitable officer protecting his chair from intruders when last reports came in. His abnormal behaviour had begun to attract government servants from other offices, and there were visitors all the time as if on a sight-seeing trip. As a result, official activity in the food office had come to a standstill, till the issue was resolved either way. For the bureaucrat, his chair is the be-all and end-all of his existence. Possibly it sends up some special electronic rays into the body which give him super confidence in himself and in his ability to conduct himself properly like an officer. It is not an ordinary chair. Were it not so, it would not alienate him from the riff-raff and give him delusions of grandeur. Its invisible influence makes it akin to a royal throne. The officer is so enamoured of this chair that, left to him, he would strap his body to it, because once he is out of it, the magical effect disappears and he becomes an ordinary, even abject, human being with surprisingly human qualities. There are innumerable instances of otherwise decent, highly educated and cultured men acting like tyrants and dictators just because they are occupying an important bureaucratic position. At any given time, any citizen who deals with government offices, or even a minor public servant himself, will give you half a dozen names of officers who are as stiff-necked that they have trouble talking to their wives and children when they get home. Their way of working in office is marked by an inordinate love for files, so much so that they don't want to get rid of them and send them on their way, so they sit on them. They are the really privileged class of Pakistan, not the billionaires and the politicians, not even the drug barons and the Kalashnikov-toting gangsters, because all these types look up to the bureaucrat for help and blessings to facilitate their work and money-earning. Come superannuation day and then look at the miraculous change. I don't think that anywhere else in the world you will see a more dramatic transformation. There have been cases where former subordinate colleagues have failed to recognise in the smiling, affable visitor their erstwhile frowning and fire-eating boss. I have heard about some senior officers in the government of Pakistan that they smile only on Eid days, and that too when they meet an officer of equal or higher rank. Highly educated and enlightened as the bureaucrat is (by frequent foreign trips at government expense) he considers it uncivilised to do anyone a favour and make them feel grateful and beholden to him. So he tries his best not to do anything which eases someone's difficulty or solves someone's problem, except when directed from above. Then, of course it is like the word of God and becomes a duty, howsoever unpleasant it may be. Some mean and selfish citizens try to get around this noble attitude by bribing the officer, and, at the same time, convincing him that the gift has nothing to do with their stuck up file. In any case, his own conscience is clear. A gift accepted in good faith cannot be termed as illegal gratification by the strictest of moralists. But I was talking of the obsession for the chair. It is said that a 22-carat officer is all of a sudden reduced to eleven carats the day he vacates his official seat. His parting from his private secretary and orderly is heart-rending. So there must be something in the theory that invisible rays emanate from the chair and suffuse the occupant's being with superhuman qualities. An unkind critic of the bureaucracy was once cruel enough to suggest that his official chair should be given to the officer as a farewell present and that when he dies he should be buried sitting in it. No harm in that, but what has the poor family done to deserve this? Because, after retirement, if he is in the same chair, his old habits will continue, much to the disconcertment of the wife and children. They could relish these habits when they were accompanied by his power and authority, but not without them. Verily it is the chair that does it. As I said in the beginning, maybe the crisis in that Food Department office has abated, and maybe the officer who made the news is still ensconced in his chair waiting for good news while his successor stamps his feet with impatience in the PA's room. Whatever the case, the matter cannot be dismissed by us with scorn or with derisive laughter. The incident shows that, for the bureaucrat, his chair is a matter of life and death, and he would rather be seen dead in it than leave it voluntarily - even to go to the toilet! DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970814 -------------------------------------------------------------------- Can we stop whining for a day? -------------------------------------------------------------------- Ayaz Amir WHEN dutiful and perhaps loving offspring celebrate their grandmother's birthday they do not point out her infirmities, of how she has grown fat, doddering and cantankerous, complaining about everything and being generally a nuisance. They do what is required of them and if they are upwardly mobile townspeople they get a cake, put a modest number of candles on it and for at least the time that the party lasts they allow their grandmother to have a good time. Birthdays are for being sentimental and, if possible, happy. They are not occasions for drawing up a balance sheet of the cosmos. But look what's happening in the country. In the run-up to its 50th birthday there has been a veritable explosion of sour and ill-sounding punditry with every wiseacre across the land considering it his bounden duty to draw as dark and morbid a picture of our last 50 years as his feverish imagination can get him to do so. This says something about the character of our intellectual elite, if there be any such class in a country devoted to illiteracy. When it should speak up it takes refuge behind expediency. Which is why every major crisis in the nation's history has produced such a sorry crop of martyrs. But no sooner has the moment of danger passed than the anguish coming from this gilded class breaks all barriers of moderation. Don't we moan enough for the rest of the year, deriving a macabre pleasure from running our country down, even when we know in our hearts that many of us are accessories to the same crimes of which our rulers stand accused? We have been decrying the sate of the country for the last 20 years and no doubt will keep doing this in the days to come because the revolution in the country's affairs that all of us are desirous of seeing, preferably without getting our own hands soiled in the process, is not going to come in a hurry. So on our 50th birthday at least why don't we put a stop to this moaning if only for a day and be a bit happy about what this country means to us? The first truth to be imbibed is that Pakistan for all its afflictions is not a Somalia or a Uganda even though it has become fashionable for some native social scientists (may their tribe perish) to parrot the fashionable dialectic of a 'failed state'. As they thus thrive on the backs of a borrowed wisdom, they forget the resilience of their country which has managed to forge a national identity despite having to suffer a never-ending succession of mountebanks as its rulers. If Pakistan could survive Ziaul Haq, Asif Zardari, Benazir Bhutto and... well, let this pass... it can survive anything, even sectarian warfare and the smouldering fires of Karachi. If it had to go under, it would have done so long ago. Now it is here to stay if for no other reason than that its 140 million souls (this being a measure of our gift for procreation) have nowhere else to go and perhaps no wish to do so either. The upper crust may view with watery eyes the prospect of safe havens and mediocre colleges in the West. But for ordinary mortals even when they go far afield in search of jobs home will always be Chakwal, Mirpur or Tando Adam. The next thing to remember is that the expanding middle and upper classes (whose numbers are growing despite what the economists say), those who ride about in cars, chocking the Republic's roads and generally adding to the crassness which has become one of the leading characteristics of life in Pakistan, would not be where they are if Pakistan had not come into existence. The Hindu educated class - much sharper than ours, let us confess - would have crowded them out and kept them where their forefathers were: in positions of economic subordination. Every time a well-heeled Pakistani gentleman or lady gives vent to the angst without which an evening drink is never complete, he or she should spare a thought for the fact that Pakistanis, for all their foolhardiness in so many things, live better and certainly eat better than their counterparts in the rest of South Asia, Sri Lanka included. If Pakistan were such a bad place to live in, how about a stint in the slums of Bombay or Dhaka? While there is much in our affairs to bemoan, does it help to shut our eyes to the few blessings we can rightfully call our own? Take a look at the map of this region and see the turmoil it is in. The states of Central Asia are still trying to find their bearings. Afghanistan has been brought to rack and ruin by decades of war. As for Iran, it is a fine-sounding place from a distance but from closer quarters it would perhaps look different. There is no denying the filth and untreated sewage running across our land. Our schools and colleges are something to endlessly cry over. Social services are non-existent and much more besides. All this is true but so is the fact that Pakistan has greater hallmarks of stability than other countries in this so-called arc of crisis. Let us not forget another point. Pakistan today has the most open democracy in the Islamic world, Turkey and Malaysia included. In the former the army lays down the parameters of what is permissible politically; in the latter the democratic spirit which prevails has an authoritarian edge to it. The very angst which is to be heard at all times in Pakistan, and the sounds of which on this 50th anniversary are reaching a crescendo, is a function of Pakistani democracy. Try expressing this angst in Iraq or Saudi Arabia and a better appreciation will dawn of what we enjoy and many of our brethren in what for want of a better word I can only call the Ummah do not. As for lawlessness, it is no use pretending that it is not on the rise. Even so, it helps to keep things in focus. Areas of Karachi apart, it is still safe to walk the streets of Pakistani cities at night. Try doing this in parts of Washington and New York, let alone Moscow where a new mafia rules, and the distinction will become more apparent. Even as far as Karachi is concerned, it is instructive to remember that not long ago a government otherwise notable for its loot and plunder had successfully clamped down on disorder. This only goes to show that provided the will and the vision are there, the forces raising heads in Karachi can be cut down to size again. The same holds true for Punjab where sectarian killings feed newspaper headlines every day. Grave as this problem has become, the state institutions of Pakistan, despite their vaunted enfeeblement, are still capable of getting the better of it. The last item in this litany of counting our blessings is to remember the restlessness of the Pakistani people. This is the most positive outcome of our anarchic democracy. Having seen a succession of governments come and go, popular patience with corruption and incompetence is wearing dangerously thin. Any government not coming up to the expectations of the people should not be surprised if it forfeits public trust. Benazir Bhutto and her heedless band of companions have found this out to their cost. Nawaz Sharif will do so too if his government is seen to be floundering and not delivering what is expected of it. If this is not democracy, what is? Beyond the performance of governments, we must look at the spirit of the Pakistani people. If that were to fall a victim to apathy, we would then be truly in trouble. But that is far from being the case. The country's governing elites may be infected with defeatism but not so the masses who, despite the hard knocks they have received, still burn with the desire to make something of their country. Other countries in our time have been pulled down the drain by their leaders. Nigeria comes to mind as an example of this phenomenon. So does the Soviet Union and the former Yugoslavia. Given the dearth of leadership, the same fate in theory could befall us. But it will not because between failed leadership and the precipice stand the people of Pakistan. They have suffered lies, deceits and disasters over the years but it is an indication of the maturity and anger forged in the crucible of their despair that they are unlikely to put up with much of these in the future. If this be a valid proposition - and who is there to say that it is not? - then why all the gloom? Our country was a new and uncertain creation on August 14, 1947. But it is here to stay and will be around till the last trumpets are sounded and the towers of Jericho come tumbling down. So trusting in our genius to muddle through, let us raise whatever we have in our hands and on its birthday wish this maddeningly frustrating but irreplaceable country many, many happy returns. There will be time enough for moaning when this day is over.

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SPORTS

970816 -------------------------------------------------------------------- Cricket Board's worry -------------------------------------------------------------------- Our Sports Reporter LAHORE, Aug 15: Non-availability of key players is proving a big worry in finalisation of 14 members of the Pakistan cricket team which is to play the second Sahara Cup series against India at Toronto from the 13th of next month. The Pakistan Cricket Board (PCB) chief executive Majid Khan, talking exclusively to this reporter on Friday evening, said that the wily right-arm leg-spinner Mushtaq Ahmad, who had played an important role in a historic win in the five-match first Sahara Cup series against India last time, had also informed the board that he was "unfit" and so was not available for the series this time! "After receiving an intimation from Mushtaq Ahmad, we have sent a message to know from him about nature of his injury which is stopping him from joining the Pakistan team? Captain Wasim Akram has already ruled himself out of the matches against India in Toronto and in Pakistan. Paceman Muhammad Zahid is also out of action for six months. The paceman Waqar Younis is making an effort to take Glamorgan to the top of the All-England Championship after failing to earn a win for his county in a crucial Nat-West Trophy match. He is yet to inform about his availability for the Pakistan team for the Sahara Cup. Pakistan team is scheduled to leave for Toronto on September 9. We will be holding a tuning-up camp for over a fortnight. However, young off-spinner Saqlain Mushtaq, reliable batsman Ijaz Ahmad, pacemen Muhammad Akram, Shahid Nazir, Abdul Razzaq and all other main players have confirmed their availability", said Majid Khan. While replying to a question, the PCB chief executive said that serious consultations were in progress to finalise a date for the Council meeting. "We are not having a consensus on a date for the PCB Council meeting. On certain dates, when the chairman Syed Zulfiqar Ali Shah Bokhari is free, I myself am busy with other commitments. Similarly, Mr Bokhari is also not free on certain dates. However, we hope to finalise a suitable date within three or four days", said Majid Khan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970811 -------------------------------------------------------------------- 100 greatest cricketers; some omissions -------------------------------------------------------------------- Lateef Jafri JOHN Woodcock, veteran journalist and former cricket correspondent The Times, London, has come out with a list of all-time greatest cricketers, totalling 100, in a series of articles in the Saturday magazine of the prestigious paper. Now that Sir Neville Cardus, R.C. Robertson- Glasgow, the historian H.S Altham and John Arlott have passed away and the Australians Jack Fingleton, Ray Robinson, Arthur Mailey and Johnny Moyes and the reputed West Indian C.L.R. James too have died, Jim Swanton, formerly of the Daily Telegraph (London), and Woodcock should be considered as the doyen of cricket writers. Woodcock, a former editor of the most authentic chronicler of the game, the Wisden Cricketers' almanack, is fully competent to give his rating of batsmen, bowlers and all-rounders from the days the Test match era heralded on March 15, 1877, at Melbourne or even before. However, since every writer has a right to be opinionated his assemblage has some glaring omissions, certainly not slips since deliberately done in a computerised system. The Pakistani fans of the game are angrily pointing out the exclusion of Zaheer Abbas whose mastery over all sorts of bowling during his playing days was remarkable. There was grandeur in his strokeplay. Not that the statistics do not support his qualification to take a place in company of the elitist group of contemporary cricketers. His glorious 274 against England in 1971 at Birmingham won him the appreciation of the English critics and the affection of the connoisseurs. He scattered the English attack to the winds with a touch and mode that was entirely his own. He got a pride of place as Wisden's five cricketers of the year in 1972. In first class cricket, in the English county championship he thrice scored a double hundred and a hundred in 1976 and 1977, playing for Gloucestershire, the team of Dr W.G. Grace and Walter Hammond. He stands above all luminaries in scoring two separate hundreds in first class matches eight times. His exclusion from Woodcock's list cannot but be regretted and one hopes he makes an early amendment. Similarly the passing over of the magician spinner Abdul Qadir is surprising. His Test career spanned over 13 years and in more series than one against all cricket-playing countries, except the latterly-admitted ICC member Zimbabwe and South Africa, having joined the main cricketing nations quite late, Qadir's guile and wile harassed the batsmen of the highest order. His disguised action, with flight and curve, was a delight to the spectators enjoying the game from the galleries. He resembled Vinoo Mankad, Subhas Gupte, Amir Elahi and the now almost forgotten Australian Jack Iverson while moving to deceive the batsmen with his crafty and almost unplayable googly. Even Shane Warne, the Australian mesmeriser, has time and again paid tributes to the skill of Qadir. It is yet to be explained why he has been left out. No doubt there are other border-line cases of exclusions like those of Majid Khan, Mohammad Nisar, one of the soundest openers of the subcontinent, Vijay Merchant, and the inimitable stylist, Mushtaq Ali, a hero of cricket fans at all venues in India and England. When he was dropped for the second unofficial Test against the Australian Services XI at Calcutta in 1945 the fans mobbed Prince Duleepsinhji, a famed cricketer himself and a thorough gentleman, and angrily shouted, "No Mushtaq, no Test." The crowds threatened violence. The chairman of the selectors, Duleep, had but to accede to their demand. There is no instance of the fans' love for a cricketer in the game's history. There were more delectable strokes in his batsmanship than the aggressive variety of some of the swash-bucklers. He has been called "the Errol Flynn of cricket" by a gifted Australian all-rounder of yore, Keith Miller. He falls in the category of some of the finest stylists of cricket, Spooner, Palairet and Compton of England, Alan Kippax and Archie Jackson of Australia, if Victor Trumper has to be put in a class of his own, being more dashing, energetic and vehement. However, for pure graceful cricket Mushtaq Ali deserved a place. He is still erect and fit, though approaching 83. Dr W.G. Grace, who gave refinement to the batsmanship after the early Hambeldon era, heads Woodcock's rating followed by Sir Donald Bradman. One finds that Arthur Shrewsbury, one of the most organised of England openers, has been put at No 31. He belonged to the Golden Age of cricket. Interestingly Dr Grace, when asked about his world XI, only said, "Give me Arthur." It was a rare tribute to one of the most technically sound batsmen. Victor Trumper, the brilliant Australian stroke-player, died in June 1915 when he was only 38 and at the apogee of his batting form. No bowler could keep him quiet. He could cut to the smithereens any sort of bowling. Even on sticky dog he exhibited his nimbleness of feet and wrists and could go on making runs in an unruffled and quick way. In a crucial Test for England at Manchester in 1902 the whole strategy of MacLaren, the English captain, rested on getting Trumper out in a jiffy. There was a strong armoury of attack with MacLaren viz Lockwood, Rhodes, Fred Tate, Braund and Stanley Jackson. Perhaps MacLaren can be successful, thought the Lancashire supporters of England. Trumper opened the Australian innings, took up the English challenge with such swiftness and dash that he hit the first century before lunch in a Test match. He pricked the bubble of Maclaren's scheme with delightful strokes all over the field that amazed the onlookers. There was versality of shotplay in him. England lost the match by three runs. Why has Sanath Jayasuriya, the consistent Sri Lankan stroke-maker who almost overhauled Lara's record in the recent Test against India, been kept out of the world rating by Woodcock, ask the followers of the game? Other notable omissions by Woodcock are the West Indian opening pair of Gordon Greenidge and Desmond Haynes, Joel Garner, the tall former West Indian pacer, and the noted Australian fast bowler Jeff Thomson who had formed a destructive combination of fast bowling with Dennis Lillee. Fortunately the latter is listed at No 19, above Sir Alec Bedser, Ray Lindwall, George Lohmann. Fred Trueman and Sir Richard Hadlee. An additional (or separate) list to accommodate some other eminent cricketing personalities to make up the lapses is needed - maybe by some other veteran cricket scribe. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970811 -------------------------------------------------------------------- Golden Jubilee year marked by absence of sports policy -------------------------------------------------------------------- A. Majid Khan We are celebrating the golden jubilee of Pakistan apparently with no realisation that the country has not been able to formulate even its national sports policy during all these years, what to say of executing it. Half a century is considerably long period in the life of a nation but we on our part, for one reason or the other, failed to put the sports organisations on the right track and virtually neglected this vital sector of national activity. Right from the outset we left charge of running the sports bodies in the hands of ministers and bureaucrats. This process is continuing and still there seems to be hardly any realisation that this has resulted in weakening the organisational structure of most of our sports organisations. The outcome of this stereotyped approach is the overall decline of national sports and the disillusionment of the young generation which drifted towards unhealthy activities. In the absence of a democratic structure and woeful lack of physical infrastructure, the sports organisations at all levels were reduced to political dens and patronage nests. The office-bearers of the associations sought protection for their inactivity and unconstitutional acts. As a consequence the sincere and committed sports men were left with no alternative but to leave the organisations. Instead the sports mafias filled the void and further strengthened their hold on the organisations. If we look into the 50 years sports history of the country it will be seen that a good number of sports officials are holding posts for well over 20 and 30 years. In certain cases an official is enjoying perks in more than two sports bodies. Last four generations under the existing system have been deprived of a fair chance. Three months back a national sports conference was held in Islamabad and it was announced that such sports conferences should be held in Karachi, Lahore, Peshawar and Quetta before the national sports policy is framed by October this year. Two months remain for the deadline and nothing is being done. It appears that from national federations down to the provincial and divisional level the sports organisers want status quo as it serves their interest. With no accountability at any level they are just holding the offices and carrying out their activities with the financial support of the PSB and provincial sports boards of Punjab, Sindh, Balochistan and NWFP. The federal government finds itself helpless as the federations have the protection of the Pakistan Olympic Associations (POA) which is against the government interference in the affairs of the sports bodies under the charter of the International Olympic Committee (IOC). Similarly the provincial sports associations also get protection from their national federations with no interference of the provincial governments. The federations and provincial association have to work and generate funds for the games promotion. Those who could not accomplish their task should be forced to quit the organisation which they are controlling for many years. Such a change will at least herald a new era in the 50th year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970812 -------------------------------------------------------------------- Abbasi wants sport to go into private sector -------------------------------------------------------------------- Walter Fernandez KARACHI, Aug 11: "The politicians and bureaucrats should relinquish their grip on sports organisations," said Mr. Arif Ali Khan Abbasi, former Chief Executive of the Pakistan Cricket Board (PCB) and Chairman of the Sindh Sports Board (SSB) in an exclusive interview to `Dawn' here on Monday. "Today sports has turned into an industry and enormous sums of money in the form of sponsorship are available provided able private sectors individuals are handed over charge of all the sporting organisations in the country," stated Mr. Arif Abbasi, reputed for earning colossal amount of money for the PCB during the 1996 World Cup Cricket Tournament jointly hosted by Pakistan, India and Sri Lanka in the subcontinent. "The politicians and government functionaries have plenty of more important jobs to handle than to divert their time to commerce where sports is concerned," opined the Chairman of the Sindh Sports Board. "The government has a lot of important and pressing projects to place money on and the grant in aid to sports bodies should be done away with forthwith," stated the former CE of the Pakistan Cricket Board. "If an organiser cannot raise enough money in sponsorship deals he should be sidelined and only those people from the private sector with the capacity to raise money should be entrusted with the job of running the sports bodies," opined Mr. Arif Ali Khan Abbasi. "You see, both the hockey and squash federations running should be taken away from the Pakistan International Airlines (PIA) and the Pakistan Air Force respectively, and the charge should be given to competent people from the private sector," explained the Chairman of the Sindh Sports Board. "PIA has reached rockbottom where its finance is concerned and as a sage once said zero plus zero is equal to zero. So how does one expect the Airlines to promote hockey on sound footing," inquired Mr. Arif Ali Khan Abbasi. "As for squash, I really cannot understand why has its federation been handed over to the Air Force to run. They have not been able to import a single portable four-sided glass court uptil now. Do you know, that I had broached the subject with Kerry Packer way back in 1980," said the Chairman of the Sindh Sports Board. "We were planning to use a four-sided glass court on the centre of a cricket field during the luncheon interval then and this is 1997, where they are still in the planning stage to acquire one," stated Mr. Arif Ali Khan Abbasi. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970814 -------------------------------------------------------------------- 12 Pakistanis to compete in Singapore squash -------------------------------------------------------------------- Sports Reporter KARACHI, Aug 13: No less than a dozen squash players, of whom two are world famed and seasoned campaigners, the remaining are promising youngsters who would be competing in the Singapore Open, scheduled there from Aug 20. Pakistan's world number 27th Zarak Jahan Khan, world no 28 Mir Zaman Gul, former Asian juniors champion Amjad Khan, ranked 58, Kashif Shuja (World No 77) and Shamsul Islam Kakar (World No 86) are in the 32-man draw of the tournament which carries a total cash prize of dollars 21,000. Other Pakistanis have to go through the qualifying process for earning eight places reserved in the main draw. They are reigning Asian juniors champion Mansoor Zaman, currently ranked World No 101, Ejaz Azmat,Zubair Ali, Faisal Yakub Mesiya, Shahid Zaman, Mohammad Hussain and Shahzad Mohib. The eight seeded players are 1. Martin Heate (Scotland - World No 20), 2. Omer El-Borossy (Egypt-No 21), 3. Paul Gregory (Greece- No 22), 4. Zarak Jahan Khan (Pakistan-No 27), 5. Mir Zaman Gul (Pakistan-No 28), 6. Stefan Casteleyn (Belgium-No 29), 7. Simon Frenz (Germany-No31) 8. Rodney Durabch (South Africa-No 32). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS* 970814 -------------------------------------------------------------------- Jansher off to Finland for World Games -------------------------------------------------------------------- Sports Reporter KARACHI, Aug 13: World number one Jansher Khan, the Pakistan champion of the world squash, left the other day for London on his way to Finland for the World Games, starting at Lahti, Finland, today. Squash is one of the disciplines of the World Games and is being contested by 16 players, one from each country. The World Games include those disciplines, which are not part of the Olympics but their international federations are endeavouring hard for their inclusion in future Olympiads. Back to the top.

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