------------------------------------------------------------------- Week Ending : 19 July 1997 Issue : 03/29 -------------------------------------------------------------------

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HRCP chief says agencies running parallel govt. PIA raises domestic fares UAE deports 119 Pakistanis Hubco chief sees no room for tariff renegotiation Dar lists 14 items to be imported from India Way paved for US investment in Pakistan Pakistan 2nd largest recipient of IBRD loan Sale of blocked F-16s to Bahrain under study ---------------------------------


Exports fall by 5.1pc, imports 1.4pc Trade gap widens by 9pc Industrial zoning authority to be private set-up Roadblocks to Japanese investment in Pakistan US coercing Pakistan on intellectual property rights $750m target for software exports US capitalism is not a model Exports projected to yield $9.57bn ---------------------------------------


2010 Ardeshir Cowasjee The dead are other people Omar Kureishi Not just Karachi Rifaat Hamid Ghani Riba Hafizur Rahman -----------


Has Aamir Sohail case been really closed? Century knocks in both innings of a Test 14 Juniors-seniors mix in hockey a failure Jansher agrees to participate


970715 ------------------------------------------------------------------- HRCP chief says agencies running parallel govt. ------------------------------------------------------------------- Our Staff Reporter KARACHI, July 14: The chairperson of the Human Rights Commission of Pakistan (HRCP), Asma Jahangir, said on Monday that there were "two governments" in the country, and one of them was run by what she called "the agencies". The HRCP chairperson was speaking at a seminar organized by the Alliance Against Discriminatory Laws (AADL), a 14-member umbrella organization made up of human right�s groups. Tehrik-i-Niswan, led by Khalid Ahmed and Sheema Kirmani presented several dramatic scenes highlighting the often secondary and subservient role that women were relegated to in the Pakistan society. Speaking before a packed FTC auditorium Ms Jahangir said that Pakistan was going through a very difficult phase. She said that the laws were made for those who used them for their own benefit. She said the Hudood Ordinance was made "only for men" to suppress women and the underprivileged. She said according to Articles 62 and 63 of the Constitution the legislators should be "angels" and asked which one of them is an angel. Ms Jahangir said all discriminatory laws must end. The blasphemy law, she said, was surprisingly made not during a martial law regime but when there was an assembly. She said there were never any blasphemy cases or sectarian incidents during the time of martial law or even during the time of the caretakers but when an elected government came to power these incidents began occurring. The HRCP chairperson said the attitude of the courts in Hudood cases needed to improve and become more progressive. She said the judges "talk of morality" but send women in Hudood and similar cases to Darul Aman without taking into consideration that a woman might want a different choice for herself. Speaking from her personal experience in defending people accused under the blasphemy laws, the HRCP chairperson said that the prosecuting lawyer in the famous Salamat Masih case, after the judgment was announced, supervised the deliberate demolition of her car parked in the court premises. She said during the case hearing, three lawyers would be standing behind her while she would be making her submissions before the court and on one occasion a lawyer sitting in the audience even got up and abused her. In addition to this, Ms Jahangir said, another lawyer who had nothing at all do with the case had appeared before the court. The court, she said, never took notice of these occurrences. And when the judgment was read out in the Salamat Masih case, she (defence lawyer) was not allowed to be present in the room. One of the opposing lawyers, Ms Jahangir said, had printed a libelous pamphlet defaming her religious beliefs and as many as three judges had written forewords to this book. She said that when she approached the learned judges and asked that would it not be embarrassing if she filed a defamation suit against the writer of the pamphlet and the judges might be dragged into the proceedings, she said she got the answer : "People ask us to write forewords all the time, who has time to read the whole book." The other speakers at the seminar were lawyer and activist Hina Jilani and columnist and academic Eqbal Ahmed. Ms Jilani said that the proposal that 33 per cent seats be reserved for women was very necessary given the past and ongoing discrimination against women. She said that the reservations should however be for a limited period of time till when women could come in large numbers in parliament so that issues that were close to them could be advocated for at the highest policy- and decision-making levels. Ms Jilani said her experience as a lawyer had shown that those affected by the Hudood laws, especially women, often had to face very difficult times with the police. One example is, she said, that they police when they register the case do not specify whether it is Zina (Section 10 [2]) or Zina-bil-jabr (Section 10 [3]) which carries punishment for the woman also. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970716 ------------------------------------------------------------------- PIA raises domestic fares ------------------------------------------------------------------- Our Staff Reporter KARACHI, July 15: PIA raised its domestic fares by up to 10 per cent on selected domestic routes on Tuesday, airline officials said. Fares on flights in the Northern Areas and certain regulated routes along Balochistan�s coastal areas were not raised. The one-way economy fare from Karachi to Islamabad is now Rs 3,210, up from the previous fare of Rs 2,920, an increase of 9.93 per cent. Similarly, the one-way economy fare from Karachi to Lahore was raised from Rs 2,420 to Rs 2,650, an increase of 9.5 per cent. A first-class one-way ticket to Islamabad will now cost Rs 5,230 and a club class seat will be for Rs 3,690. For flights from Karachi to Lahore, one-way fares for these seats will be Rs 4,750 and Rs 3,050 respectively. The increase, which PIA chairman Shahid Khaqan Abbasi had already indicated last month, was due to the airline�s belief that it had to "rationalize" its domestic fare structure, the officials said. Later, he had also said at press conference that the increase was necessary due to a 40 per cent rise in fuel prices. INTERNATIONAL FARE: The increase in the domestic fares is the first since June 16, 1995, while international fares were last raised on October 1, 1996. Airline officials said that while the International Air Transport Association (IATA) regulated changes in PIA�s international fares, an increase was expected in August. International air fares usually increase with the advent of summer, which began for PIA in April. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970717 ------------------------------------------------------------------- UAE deports 119 Pakistanis ------------------------------------------------------------------- Our Correspondent DUBAI, July 16: Following a mass flushing of illegal residents last year, the UAE authorities have deported 119 Pakistanis found in violation of UAE immigration laws during the first six months of 1997, disclosed Bakhtiar Khan, counselor at the Pakistan consulate in Dubai. However, Mr. Bakhtiar said violations of immigration rules by Pakistanis have decreased considerably since the new immigration laws were imposed by UAE authorities on October 1, 1996, and those deported during the period are those who could not avail the opportunity due to various reasons. He thanked the UAE authorities for being cooperative in settling the issue of the 119 Pakistanis in an amicable manner. UAE authorities announced unprecedented amnesty for illegal residents last year during which approximately 200,000 illegal residents including over 33,000 Pakistanis left the country. Pakistanis with a population of approximately 400,000 comprise the second largest expatriate community after the Indians who number over 750,000 in the country of 2.3 million. Mr. Bakhtiar, who handles the passports and visa section in the consulate said steep decline in number of violations of UAE resident laws and other criminal cases by Pakistanis is encouraging. According to figures provided by the consulate 2,978 passports were issued in March 97 and 2,066 passports in April during the same year compared to 2,944 and 2,459 passports during the same months in 1996 respectively. According to government procedure, the respective applications filed in foreign missions are sent to Islamabad for verification by the police stations of the respective areas before the final approval. This procedure is officially said to take three months, but it usually takes longer period thus creating hardships for Pakistanis who travel frequently. Some Pakistanis say that police has been the sole beneficiary of this rule as the police extorts huge sums of money to put a seal of bonafide Pakistani for the applicant. Similarly, according to government rules the passport without the valid national identity card can be issued only for a limited period of one year. The rule has been imposed without providing a facility of issuing I.D. cards at the missions. The mission sources say that upon request they have sent hundreds of applications but the response from Pakistan have been very slow. The sources also say that every month they are flooded with calls from those who have recently attained the age of 18 years for I.D. cards to subsequently apply for a separate Passports. The government has no adequate provision of issuing ID cards at mission abroad, thus leaving no option for the applicants but to visit Pakistan specifically for this purpose. Due to long delays in issuance of ID cards through the missions, it is said that almost 500 ID cards are lying unclaimed at the Dubai consulate alone. It is presumed that either the applicants have left the UAE or apparently given up the hope to get their cards. Pakistanis in the Emirate have suggested that the government can either delegate the responsibility to existing staff or depute officers from the registration office in its foreign missions so that the cards can be issued without unnecessary delay. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970718 ------------------------------------------------------------------- Hubco chief sees no room for tariff renegotiation ------------------------------------------------------------------- Our Reporter LAHORE, July 17: HUBCO managing director D M Woodroffe sees no room for any renegotiation of HUBCO power tariff at which the company is supplying power to WAPDA. Addressing a Press conference here on Thursday, the HUBCO chief said the president of Pakistan had given guarantees on behalf of the government to implement the agreement signed with HUBCO. Moreover, there were about 50,000 Pakistani shareholders of the company who had invested capital on terms and conditions as agreed upon with the company and they would not be prepared to revise the tariff in any form. He said besides thousands of shareholders, 45 international banks and financial organizations had lent money for the project, including 12 banks which had never made any investment in Pakistan earlier. Mr Woodroffe said he warned that any attempt to revise the tariff of private power producers might discourage foreign investment in Pakistan for future projects. He thought that the debate on revision of tariff by renegotiation was in fact political. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970718 ------------------------------------------------------------------- Dar lists 14 items to be imported from India ------------------------------------------------------------------- Bureau Report ISLAMABAD, July 17: The government has permitted the import of 14 items from India, but decided not to allow the import of reconditioned cars at least during 1997-98,Commerce Minister Ishaq Dar stated here on Thursday. "Then I can also tell you that there is no programme to devalue Pakistani currency. However some little adjustment and readjustment here and there would continue to be made by the State Bank of Pakistan", he further stated. At a press conference, the minister listed 14 items allowed to be imported, and declared that he did not think that the government had politically compromised on the Kashmir issue by allowing India to export new items to Pakistan. The 14 items which could now be imported from India include: tyres, cotton and yarn, wood and wood charcoal, raw and wet blue hides and skins, light weight steel rail up to 20 Kg per meter (not manufactured locally), whole chilies, nickel cadmium batteries, cutting dies for shoe uppers, carbon brushes, arc lamp carbons, battery carbons, anti-snake bite venom serum, whole turner, tanning or dyeing extracts, dyes, pigment and other colouring material, paints and varnishes etc,. The minister defended the import of new items from India and said the move will save a lot of foreign exchange. "If we can get any item by paying 5 dollars why should we pay double the amount by importing it from far away countries". He said there were already 587 items on the list which could be traded between the two countries and the inclusion of few more items would not mar the political or economic interests of the country. Further he pleaded it will help the local market as the decision has been taken on the request of the local importers. However, Dar said Pakistan was not immediately offering the status of Most Favoured Nation (MFN) to India which it had already extended to Islamabad. "Sooner or later we will have to give this status to India as is being asked by the World Trade Organisation (WTO) and other compulsions of the SAARC". Talking about the import of re-conditioned cars, the commerce minister said their import would not be allowed at least during the current financial year. "We will have to forgo around 40 per cent of the capacity of local automobile industry if we allow the import of second hand cars," he said adding that the government was forced to protect domestic car industry for which it was necessary that the ban should continue on the import of re-conditioned cars. Answering a question Dar said the government expected to earn 500 million dollars by allowing export-refinancing to computer software industry. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970718 ------------------------------------------------------------------- Way paved for US investment in Pakistan ------------------------------------------------------------------- Staff Correspondent WASHINGTON, July 17: The US Senate on Wednesday unanimously adopted an amendment which would clear the way for resumption of military exchanges between Pakistan and US and provide the vital insurance cover to US investors in Pakistan. Senators Tom Harkin and John Warner moved the amendment which effectively alters the Symington Amendment that was blocking the provision of OPIC cover to US businesses and military exchange programme IMET, originally agreed to in the Brown Amendment. The Senate adopted the Harkin-Warner Amendment without a debate and congressional experts said the House of Representatives was also likely to pass it without any objection, thus paving the way for further implementation of the Brown Amendment. Originally the authors of the Brown amendment had promised that IMET and OPIC would be restored with its passage but it did not turn out to be so as only military equipment worth $368 million was released and no other provision could be implemented. The reason was that the provision of the OPIC cover and military exchange programmes were forbidden by the Symington Amendment which the authors of the Brown Amendment had either ignored or had deliberately misled everybody. The Harkin-Warner Amendment was adopted as part of the Senate Foreign Operations Appropriations Bill which was passed by the Senate and would now go soon for reconciliation with its House version. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970717 ------------------------------------------------------------------- Pakistan 2nd largest recipient of IBRD loan ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, July 16: The World Bank on Tuesday announced that it had disbursed $2.67 billion to South Asia for fiscal 1997 ending June 30 of which Pakistan received $644.6 million. India was the largest recipient in South Asia with $1.56 billion followed by Pakistan. Disbursements to others in the region were $314.56 million to Bangladesh, $87.72 million to Sri Lanka and $58.42 million to Nepal. In comparison, disbursements for FY96 were $2.253 billion, composed of: India-$1.309.5 billion, Pakistan-$521.1 million, Bangladesh-$226.6 million, Sri Lanka-$108.9 million and Nepal-$82.4 million. The Bank announced that it provided $2.011 billion in loans, credits and guarantees to South Asia during the same period. The Bank�s lending commitments, for 19 projects, included US$1.385 billion from the International Development Association (IDA)-the concessionary lending arm of the World Bank-and US$626.5 million in loans from the International Bank for Reconstruction and Development (IBRD). Disbursements to the region increased sharply by more than $400 million, totaling $2.668 billion. Lending to South Asia in previous years was $3.01 billion in FY96 for 22 projects, $3.25 billion in FY95 for 19 projects and $2.37 billion in FY94 for 19 projects. The Bank�s FY97 assistance programme aimed to provide high-quality services and innovative and efficient programmes by working with partners and involving broad community participation. The main prongs of the Bank�s strategy focused on helping countries improve their fiscal situation and push ahead with reforms that will increase saving and investment, attract foreign capital and thus increase the region�s growth rate in a sustainable manner. India was the largest borrower in the South Asia Region. Bank lending commitments to India reached US$1.5 billion for ten projects, with IDA credits accounting for US$903 million and IBRD loans for the remainder. This was followed by Pakistan (US$84.8 million for two IDA projects), Bangladesh (US$321 million for three IDA projects), Sri Lanka (US$57.8 million for three IDA projects) and Nepal (US$18.3 million for one IDA project). No lending was provided to Afghanistan, Bhutan or the Maldives. Lending for population, health and nutrition projects totaled nearly US$600 million, accounting for nearly 30% of total FY97 lending. Agriculture and rural development received US$424 million or 21% of FY97 lending. Lending for transportation projects totaled US$685 million or 34% of overall lending. FY97 lending also went to projects in environment, finance, power, public sector management and water supply and sanitation. New lending commitments were down almost $1 billion from FY96 due to annual fluctuation. Also, the Bank and borrowing governments are exercising great care during project preparation in order to achieve higher quality-at-entry for new projects, particularly in complex sectors dealing with sensitive issues such as resettlement and the environment. In addition, policy reform and implementation in some sectors was not at the level needed for loan effectiveness. For Pakistan�s Financial Reporting and Auditing Project, US$28.8 million equivalent IDA credit is being provided to enhance public sector accounting and financial systems. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970713 ------------------------------------------------------------------- Sale of blocked F-16s to Bahrain under study ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, July 12: Pakistan�s blocked F-16 aircraft now parked in Arizona could be sold to Bahrain as the small Gulf state is considering a purchase of 20 F-16s of the same make and model, defence experts said on Saturday. The Bahrain announcement comes as two other countries �- the UAE and Saudi Arabia �- are also considering buying new F-16s in what experts believe would be a potential deal worth more than 12 billion dollars. The Bahrain request to the US to purchase the 20 fighter aircraft for a total of 303 million dollars was officially confirmed by the Pentagon last week. Bahrain either wants the F-16 A and B models, the same as built for Pakistan, with modification kits from the US Air Force, or 10 new F-16 C and D models, according to Pentagon officials. Pentagon has not said whether the US will offer the 28 Pakistani aircraft but the announcement says that if Bahrain opts for the A and B models, these will come from Arizona. Defence experts say it is now for Pakistan to pursue the matter with both the US and Bahrain to ensure that the deal with Bahrain resolves a long-standing dispute between Washington and Islamabad while satisfying the defence needs of a brotherly Islamic state. This has become more important after the collapse of negotiations between the US and Indonesia and threats from Pakistan that it may take the US Government and the Lockheed Martin to court if the matter is not resolved by other means soon. The US also has a large inventory of its own used F-16 aircraft which it has been trying to dispose of in the international market for some years, but without success. Their efforts are focussed on former east European states which need to modernize their air forces. Pentagon was in fact even ready to offer these used F-16s on very attractive lease terms to these east European buyers where the price of each aircraft was close to two million dollars as compared to the huge cost Pakistan had paid in 1990. Pentagon officials, however, said the deal with Bahrain could be worth up to 303 million dollars. They said in a statement that the Defence Department had notified Congress of Bahrain�s intentions. Pentagon says if Bahrain picks the older F-16As and Bs, the aircraft would be taken from the US Air Force�s so-called bone yard at Davis Monthan Air Force Base at Arizona. If Bahrain chooses the newer F-16Cs and Ds, the aircraft would be manufactured at Lockheed Martin Tactical Aircraft Systems in Fort Worth, Texas. As part of the deal, Bahrain would receive spare parts and logistical support with whichever package it chooses.


970713 ------------------------------------------------------------------- Exports fall by 5.1pc, imports 1.4pc Trade gap widens by 9pc ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, July 12: The trade deficit, in the financial year ending June 30 expanded sharply by a nearly a record 9 per cent per cent as it jumped to $3.37 billion in 1996-97 from $3.09 billion in 1995-96, according to the official data released by Federal Bureau of Statistics on Saturday. The total exports declined by 5.1 per cent from $8.7 billion in fiscal 1995-96 to $8.26 billion in the fiscal 1996-97. Imports also declined by 1.4 per cent from $11.8 billion in 1995-96 to $11.63 billion in 1996-97 showing a decline of 1.4 per cent. In June the exports declined by a huge 34 per cent against what was earned in the corresponding month last year despite the production and export-friendly policies announced by the government in March, this year. Imports despite the substantial concessions given by the government decreased sharply by 8.9 per cent compared to the month of May and whooping 25.7 per cent in June 1996. The figures issued by the Statistic Division belied the claims made by the Finance Minister, Sartaj Aziz that the economy has come out of the recession and was showing signs of recovery. All the main exporting items like rice, raw cotton, cotton year, leathers and carpets showed a declining trend. The exports of raw cotton dropped from $506 million in 1995-96 to paltry $30 million in 1996-97. The country exported rice worth of $460 million down from $504 million in 1995-96. The exports of leather and leather goods also decreased from $259 million in 1995-96 to $238 million in the year ended on June 30. Exports of cotton yarn decreased by over $1 million from $1.54 billion in 1995-96 to $1.4 billion in 1996-97. Tarpaulin and Canvass exports slipped from $39 million in the fiscal 1995-96 to $34 million in 1996-97. Carpets exports showed alarming decline from $209 million in 1995-96 to $193 million in 1996-97. Exports in chemical and pharmaceutical group and molasses dropped from $59 million to $46 million and $70 million to $51 million, respectively. Exports of fruits, fish and fish preparations, raw wool, towels, cotton bags, readymade garments, synthetic textile and textile made-ups, sports goods and leather manufactures increased in the year. The largest increase of $78 million was registered in exports of readymade garments from $648 million to $726 million. The exports of sports good increased by $52 million from $247 million in 1995-96 to $299 million in 1996-97. It was followed by synthetic textile which registered increase of $39 million in the export in the 1996-97. In the year 1995-96 the export of synthetic textiles were of only $457 million but in the year 1996-97 it increased to $496 million. Exports of towels and cotton bags increased from $174 million to $193 million and $24 million to $25 million, respectively. Textile made-ups jumped to $206 million in 1996-97 from $179 million with an increase of $27 million. The fruits exports also increased from $43 million to $69 million showing a substantial increase of $26 million. Raw wool exports increased from $12.2 million to $13.5 million. Country also exported fish and fish preparation more in the years as their exports increased by $8 million from $140 million to $148 million. The imports of all items, *demand of those increase in thriving economy*, dropped sharply including textile machinery, construction machinery, agriculture machinery and electrical machinery. The country in the year 1996-97 imported less textile machinery than in the previous year. The imports dropped by $61 million from $187 million to $126 million. Construction machinery worth of $19 million was less imported in the year. Import of agricultural machinery decreased from $52 million to only $35 million. However, the only bright aspect of the decreased imports was that the country purchased less consumption items like soybean oil, palm oil, pulses, milk, spices and tea. The import of soybean dropped from $117.2 million to $99.5 million. The country consumed less tea as its import decreased by $35 million from $169 million to $134 million. The largest decrease was in palm oil as it declined from $738 million to $408 million. Imports of pulses decreased by half down from $100 million in 1995-96 to only $42 million in 1996-97. The country also imported less paper and its imports came down from $156 million to $125 million. The wheat crisis suffered by the country during the year was also reflected in the trade figures as the import of unmilled wheat increased from $444 million to $477 million. Interestingly, the import of dry fruits also increased from $33.5 million to $35.48 million. The progress of power plants being installed in the country was reflected in the imports as the country imported power generating machinery of nearly $1 billion. Whereas, in the last year country had imported machinery worth of $742 million. The imports of fertilizers also remained on the up and fertilizers worth $387 million were imported against $345 million in 1995-96. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970713 ------------------------------------------------------------------- Industrial zoning authority to be private set-up ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, July 12: A new �Industrial Zoning Authority� is being set up which will be responsible for providing all infrastructural facilities to local and foreign investors for setting up their projects without approaching any government functionary. �This proposed Authority will be given the powers of sanctioning electricity, gas, water, telephone, roads and other necessary facilities to new local and investors instantly,� said Sec, Board of Investment (BOI), Abdullah Yousef. He said that such an Authority was working in many developing countries including Bangladesh that has greatly benefited the local and foreign investors where the involvement of custom, income tax, police and other agencies has been done away with. Yousef said that foreign investors have started coming into Pakistan with the change of the government but they were certainly concerned about the lengthy procedure to get any facility like electric, water, phone etc. �Secondly, the investors from various countries including Malaysia, Singapore, Japan, Korea, USA and other western Europe who have visited Pakistan after prime minister Nawaz Sharif took over, though appreciated the new economic policies, they did talk about bottlenecks hampering the investment,� the new BOI Sec said. He disclosed that some new industrial zones will soon be set up having �special status� where a number of facilities could be offered. �At present, there are about 63 industrial zones which will be reduced and a set of new zones will be established including the one in Port Qasim and others along the Motorway,� Abdullah Yousef said. Responding to a question he conceded that the level of foreign investment that has touched $ 1.2 bn have now reduced due to a number of factors including political instability in the past and the change of policies every now and then. However, he was hopeful that the target of $ 500 million which has been fixed for the current year will be achieved. Abdullah Yousef also disclosed that the BOI has arranged a number of local and foreign conferences to boost investment in Pakistan. Giving the details he said that these conferences will be held with the cooperation of UNIDO which was currently inter-acting with a number of foreign investors. One of the major investors conference, he said, will be held in August this year. �Then we will have an international investment conference in UK in the third week of October which will be our major marketing effort to boost investment in Pakistan,� he added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970714 ------------------------------------------------------------------- Roadblocks to Japanese investment in Pakistan ------------------------------------------------------------------- M. Ziauddin The HIGH-LEVEL Japanese economic mission comprising 50 members which visited Pakistan between May 23-28, 1997 has identified 11 roadblocks which according to its report, "Survey of business climate in Pakistan" submitted recently to the government of Pakistan, have impeded normal inflows of foreign private investment into this country, especially from Japan. These roadblocks include: 1. inconsistency and non-transparency of policies; 2. civil insecurity and political instability; 3. lack of infrastructure; 4. poor living environment for resident representatives of foreign companies; 5. defective legal and tax systems; 6. complex procedures; 7. inadequate supplies of raw materials, parts and components; 8. lack of skilled workers and high cost of labour; 9. inefficient financing sector; 10. unreliable partners and; 11. bad public image internationally. In some cases, what the Japanese are asking could be likened to the chicken and egg situation. However, if one were to remove the extraneous suggestions, one is struck by the striking similarities between what the Japanese businessmen want the government to do and what is urgently needed to be done for the country to get out of its current economic mess. In view of the importance of the subject and to avoid being accused of misinterpretation or misrepresentations of thoughts and ideas, all the roadblocks are being described, in the following passages, in the exact language used by the Japanese mission in its report. Roadblock 1: Pakistani government policies tended to lack consistency in the past given the country�s political circumstances. Increased efforts are needed to make stable policies from a long term point of view. The interpretation of many of the laws and tax systems now in force in Pakistan has not been firmly established and largely depend on the judgment of administrative agency officials involved. It is desired that necessary improvements be made in this respect because arbitrary application of laws and tax systems could lead to unequal treatment of local companies. Action should also be taken to clearly set forth incentives for investment and to ensure that such incentives will not be readily invalidated by a change in the applicable policy. In addition, we (the Japanese) desire, arrangements will be made that any action announced by the Board of Investment (BoI) for improvement of its policy be accompanied by a statutory regulatory order (SRO), so such action will bring forth real improvement. Roadblock 2: Public security in Pakistan has improved considerably due primarily to the recent petering out of armed strifes between the government and MQM, but grave concern still remains with religious struggles in the country. We (Japanese) desire that effective measures be taken for drastic improvement and the satisfactory operation of the police organisation. Although terrorism is declining, general crimes, especially robbery, are increasing. While Karachi is attaining better public security, the situation in Lahore is something to be concerned about. We (Japanese) strongly hope the Pakistani government will exert more efforts to build up better relations with India. Roadblock 3: Power (electricity) service is interrupted too often. The construction of new power plants is gradually proceeding, but there are concerns about delays in the enhancement of transmission and distribution networks. Increased efforts should be made to accelerate additional generating capacity projects. It is desirable that more construction projects be carried out to develop networks of roads and railways for transportation between seaports and inland areas. Airport facilities should be improved and expanded. According to our (the mission�s) survey seaport facilities are improving steadily. It is desired that necessary measures be taken for enhancement of communications infrastructure. Both water supply and sewer systems are inadequate. We (Japanese) request the Pakistani authorities to secure as stable supply of water and gas. We (Japanese) request the competent authorities to accelerate the development of infrastructures in industrial areas particularly designated districts for location of factories. It is desirable that Pakistani authorities follow a consistent policy in building infrastructures with limited financial and other resources properly allocated to priority projects. Also, we (Japanese) request the authorities to neither leave the development of infrastructures to private enterprises, including foreign affiliates, nor to force the enterprises to undertake these public works in return for the approval of their investment projects. Roadblock 4: Public security is inadequate. The quality of medical and public health institution facilities is not sufficiently reliable. Water and electricity services are frequently interrupted, making it necessary for resident representatives of foreign companies to install water supply and power generating facilities for themselves at additional cost. Certainly, it is attractive to foreign residents that they can enjoy golf inexpensively, but there are few other facilities for recreation or self-enlightenment. We (Japanese) request the Pakistani authorities to liberalise the import of Japanese food. It is desired that more liberalisation action be taken to permit non-Muslim foreigners to bring alcohol beverages into the country and have alcohol drinks at restaurants. Also, we (Japanese) desire that restrictions on multi-visas be removed. With a moderate Islamic nation in view, we (Japanese) hope, the Pakistan government will take steps, including the expansion of recreational facilities for foreigners, to make the country more comfortable and pleasant for foreign residents to live in. Roadblock 5: It is desirable that action be taken to simplify the existing tax systems which are likely to cause corruption as these are too complex and vague, with their interpretation left to the discretion of officials in charge. Also we (Japanese) desire that the practice of making sudden, abrupt amendments to the tax system be discontinued. We (Japanese) believe well-balanced tariff rates should be applied to the import of finished and intermediate products and raw materials. In addition, steps should be taken to reduce import tariff rates, especially for those materials and machines which are not available from domestic sources in Pakistan. The competent authorities should establish or simplify the tax rebates system for raw materials, products and other things used for products that are exported from Pakistan. A system should be established to unconditionally license foreign-owned trading houses to carry out import and export business. Steps should be taken to correct the present situation including, among others, disparities in the assessment rate of taxable amounts, which foreign investors feel unfair. Another problem is �octroi�, a tax unfamiliar to most other nations in the world, is in force in Pakistan. There are some cases of disputes over the Pakistani authorities� demand for payment of the portion of tax which should be collected from the source in Japan under the taxation agreements between Pakistan and Japan. We (Japan) request that improvement measures be taken in this respect. The problem is that Pakistani authorities do no collect the taxes which should be collected. In other words, they should impose taxes on big landowners and agricultural income, instead of increasing taxes on foreign affiliates. Roadblock 6: Pakistan has in force many complex, time consuming procedures which are difficult to understand. Also notable, is extreme bureaucracy that involves the lack of communication among government agencies, within each of them and among different classes of officials. We (Japanese) desire that steps be taken to reduce the time required to obtain work permits for foreigners sent to joint venture companies in Pakistan. Representative of Japanese companies are now required to obtain work visas in Japan. We request that action be taken to make such visas obtainable in Karachi and Islamabad as well. We also request that steps be taken to make the licensing systems and their respective tasks and functions clear for foreigners to understand. Another request is that effective measures be taken for government officials to strictly adhere to law and fixed procedures. Improvement efforts on the Pakistani side are reflected in the establishment of BoI and some other measures, but we (Japanese) think arrangements should be made to provide better guidance for the government agencies responsible for implementing such improvement measures. Further efforts are needed to relax the exchange and trade control. Also steps should be taken to ensure that decisions ( on investment incentives) by the government leadership will be fully implemented at lower organisations. Roadblock 7: We (Japanese) request the Pakistani side to enhance the parts and components industry and to ensure that products of satisfactory quality will be delivered within the specified time. Parts and components available now from Pakistani sources are made to European specifications. We (the Japanese) desire that another incentive be provided for foreign investment by reducing import duties on raw materials and parts and components The time required for customs clearance should be reduced. In addition, stronger measures should be taken against imports through illegal channels like smuggling. Roadblock 8: The Pakistani work force has an advantage in that many workers speak English and are diligent. Although the Pakistani labour is rated high as its quality and cost are balanced fairly well, the problem is a wide disparity in quality. Efforts should be exerted to raise the literacy rate which differs significantly between cities and rural districts. We (Japanese) hope that Pakistani government will take measures against inflation to retain the attractiveness of low labour costs. A notable problem in the area of work force is that many of the workers who have reached a certain skill level after they were hired leave the companies (especially to find jobs abroad). It is desirable that satisfactory programmes for fundamental and technical or professional education be provided both at school and job sites. Despite religious constraints, we (Japanese) hope, the Pakistani authorities will take steps to develop social climate that makes better use of female work force. Roadblock 9: The interest rates in Pakistan is too high. We (Japanese) desire that financing in Pakistan be facilitated through such measures as the restructuring of financial circles, the retrieval or disposition of non-performing loans and the improvement of the monetary conditions. Efforts should also be exerted to stabilize the political and economic climates, so latent funds will appear on the market. Pakistan is a high risk country which makes financing to foreign investors� difficult and costly. We (Japanese) believe, therefore, the exchange rate of the rupee should be stabilized by improving Pakistan�s balance of international payments through further development of export industries. It is desired that the cost of financing from financial institutions in Pakistan be cut back by introducing more elements of competition among them through the relaxation of regulations (e.g. the permissible limit to total holdings and specified scope of operation) on banks and other financial institutions, including those with foreign capital. Means of risk hedge should be established by enhancing the forward exchange contract to facilitate financing for foreign investors and affiliates. Arrangements should be made for foreign affiliates to freely hold foreign currencies and remit money abroad. In addition, we (Japanese) desire that the existing control measures be improved to allow foreign affiliates to make full use of the capital they have brought in to Pakistan. Roadblock 10: There are many reliable partners in Pakistan, depending on industrial sectors, and foreign investors or affiliates would face no problem if they sign joint venture agreements with good partners. However, efforts are needed to increase the transparency of management because many local enterprises are a family-operated business whose managers lack a sense of modern business administration. Fortunately, the BoI takes a positive stance on the solution of problems in this respect through business forums with Japanese companies. It is desired that the competent government agencies provide clear, definite information on the office or divisions in charge of dealing with foreign investors or affiliates and on responsible divisions or officials that have the authority to make decisions. Roadblock 11: We (Japanese) request the Pakistani side to implement more positive public relations in a bid to attain a better public image of the nation abroad, especially in Japan. Effective measures should be taken to solve the lack of information on such matters as joint ventures and financing. Also, we desire that Pakistani authorities offer assistance to the establishment of Japanese schools in the country. Another request is that a national plan be worked out for regional development and priority industry development, which will serve as investment guidelines. In addition, it is desired, arrangements be made to provide correct and accurate information including, among others, newspaper stories. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970714 ------------------------------------------------------------------- US coercing Pakistan on intellectual property rights ------------------------------------------------------------------- Dr. Jassim Taqui ONE OF the most challenging issues confronting Prime Minister Nawaz Sharif and his economic decision-makers is to positively respond to the pressures by the United States regarding the Intellectual Property Rights (IPRs). Pakistan has to set and act very quickly to bring her rules into conformity with the Uruguay Round agreement in matters relating to Intellectual Property Rights. Pakistan is reminded time and again that it is a signatory to the GATT and has now to abide by the rules of the game particularly in matters relating to trade. According to one estimate, global publishers and distributors of computer software lose about $1200 million annually as a result of software piracy. Piracy losses to other industries that produce electronic, chemical, scientific, industrial and cultural products sound recording, movies, photographic materials dwarf those faced in software industry. Global producers of these industries and others are knocking the doors of Pakistan and other developing countries to stop trade in goods that infringe on such intellectual property rights such as patents, trademarks, copyrights and trade secrets. In doing so they are using a comprehensive new set and stronger measures under GATT. Pakistan is trying to attract foreign investment through incentives and privatization. But the American and Western investors have repeatedly informed the government that they would not invest in Pakistan unless the government took some serious steps to enforce the IPRs. On one side are the industrial countries whose business claim that it is counter-productive for them to spend the required large funds on research and development to create new product and processes if illegally copying and sales of their products prevent them from recovering their expenditures. On the other side are some developing countries that claim that the monopoly rights provided to the patent and copyright holders translate to higher prices for consumers. Some of these countries say that they cannot afford to pay for pharmaceuticals they need and have every right to copy the drugs and sell them at cheaper prices. They further argue that a stronger international code would slow the process of technology transfer to their economies. According to the affluent West "without effective protection of intellectual property rights, new inventions and artistic works might never be available to consumers at all. Investors and inventors are going to hesitate to bring their product to a country where it can freely copied by someone else." But how does one enforce the IPRs? Well, the American thesis centres on a strong judicial system in Pakistan. The most useful test of any intellectual property rights system is not whether the law contains any particular provision or whether the courts decide cases in any particularly way. The test is whether there is a general confidence among the public at large that if inventions are made and created, the ability to protect the same should be available. Whereas a weak judiciary that consumes considerable time in resolving disputes relating to IPRs not only inhibits the ready transfer of the propriety technology, it also tends to undermine the receipt and utilisation of information which is freely available in the media and other public sources, such as patent disclosures field in other countries. Essentially a weak protective system discourages those who might make use of freely available technological knowledge. They know that if they pursue this knowledge and try to advance from it to something new or adoptive result, then the predatory hiring and constrained financing will assert themselves. This will make their efforts less worthwhile than would be the case in countries where protection for new technology is effective. An intellectual property system that works well, includes not only the appropriate substantive law but also effective enforcement mechanism and transparent administration of the law. Pursuing the theme of increasing private activity, effective enforcement should include the ability of private parties to initiate litigation without the need of public prosecutors. Effective enforcement should also equip the courts with the authority to issue orders to immediately stop parties which infringe the intellectual assets of someone else. Substantive law frequently neglects the trade secrets, a form of protection much relied on in the United States and Europe. It is also a low cost form of protection. Another low cost protective device is the utility patent, used widely in Germany and Japan as an alternative to ordinary patents. Broadly speaking, a legal system produces a guide behaviour, a means to prevent or correct a wrong-doing and a mechanism for resolving disputes. Still more broadly, a legal system include the rule-making process at both the administrative and legislative levels and it defines those who are permitted to participate in making laws. Recent studies have shown that countries attempting economic liberalisation suffer at least a 15 per patently in their growth momentum if their judiciary systems are weak. That is to say if the GDP growth rate were otherwise capable of reaching something like 3 per cent, a weak. That is to say if the GDP growth rate were otherwise capable of reaching something like 3 per cent, a weak judicial system would restrain growth to perhaps 2.6 per cent. If the issue of IPRs is resolved, it could lead to the smooth transfer of advance technology to developing countries, particularly Pakistan. Through academic centres and bright minds, a task could be worked out whereby many facets of the development process would be developed in less advanced countries like Pakistan. Thus, IPRs would not only benefit the developed nations but also the developing countries if they choose to improve these technologies or modify them. If Pakistan�s economy has to develop a massive technological base, it needs to be developed by the private sector, as, private decision rather than state command is becoming more prominent around the world. In market-based economies, private decisions take centre stage. The allocation and use of resources, labour and capital are made through the decision of those who are willing to gain or lose as a consequence of their decisions. The creation and use of technology are also chiefly the work of the private sector, once state command recedes. With this in mind, the private sector in Pakistan should also devise parallel institutions on IPRs since it is becoming more prominent in economic and trade activities. It should be noted, however, that the IPRs cannot be easily enforced because of the wide-spread international piracy. Ironically, the piracy of intellectual property is prevalent even in industrial countries. Washington-based International Intellectual Property Alliance (IIPA) reports that 75 per cent of the piracy is found in developing countries and in the newly emerging industrial countries in Asia. In another report IIPA discloses that 45 per cent of the estimated losses of the US companies from intellectual piracy occur in Asia (particularly in Taiwan, Korea, China, India, Thailand and Philippines). Another 17 per cent is in Eastern Europe and the former Soviet Union, 9 per cent in Latin America (mostly in Paraguay, Brazil and Venezuela), 7 per cent in the Middle East (mainly United Arab Emirates and Saudi Arabia), and 23 per cent in Western Europe. Though protection of intellectual property has been covered by both international and bilateral accords for years, these arrangements have no effective remedies and there is no way for the companies hurt by the violations to demand compensation. Perhaps this is prompting the US administration to enforce the so-called Super 301 in dealing with Japan and other Western nations. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970715 ------------------------------------------------------------------- $750m target for software exports ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, July 14: The government has worked out a plan to earn $750 million through the export of computer software during the next 30 months. Minister for Commerce and Investment, Muhammad Ishaq Dar has however, stressed the need for utilizing the existing resources and facilities in information technology at various universities and institutions to accomplish task of earning $750 million. He also called for providing a computer training to maximum number of people in the country. "The objective, is to earn the said amount from the export of computer software in the proposed time limit". The minister was addressing a meeting of the Vice Chancellors Committee which was convened by the University Grants Commission here on Monday. Dar said that while tremendous potential existed in the export of computer software in the growing international market, Pakistan was lagging far behind in the trained manpower requirement. He asked the vice-chancellors to draw their action plan in this direction on war-footing so that Pakistan could succeed in capturing a fraction of around $600 billion market created by the Millennium Bug in the existing software. He also advised them to formulate long-term plans for enhancing indigenous capability to develop and produce information technology both for hardware and software. Ishaq Dar informed the meeting about the government�s decision to give incentive to computer software industry which included zero-rated duty on hardware import, access to credit, participation in soft-ware related international fairs and zero-rated income tax on earnings from soft export. Earlier, the minister briefed the vice chancellors on the economic situation in the country and the various measures government was taking to bring in fiscal discipline and good governance. He also urged the vice chancellors to contribute their knowledge and expertize by giving suggestions to the government for the betterment of the country�s economy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970715 ------------------------------------------------------------------- US capitalism is not a model ------------------------------------------------------------------- Kamil Siddiqi WASHINGTON carries two divergent weapons at a time: one is the sword of free market; and the other is the shield of protectionism. When confronted with Europe it picks the sword and becomes aggressive but when the confrontation is with Japan, it goes on to its backfoot and uses the shield. Paradoxically, America is trying to play the game, �heads I win, tails you lose�, with the rest of the world. When Clinton says that America�s entrepreneurial capitalism has proved itself to the world as the model for how an economy should be organized, very few economists would approve the statement in its wholeness. The word "America" will have to be deleted to remove the dubiety of the statement. The United States may be the mother of entrepreneurial capitalism but there are a number of surrogate mothers too. Such as Europe and Japan. The need of surrogate mothers arose when the real mother could not foster the offspring in a complete civilized manner. The uncivilized activities of American entrepreneurial capitalism included the gunboat diplomacy during its infancy, when on 16 May 1854, the captain of an American company-owned steamboat shot a native Nicaraguan boatman after their ships collided. When Greytown (Nicaragua) authorities tried to arrest the captain for murder, the American minister, Solon Borland, intervened. Later that evening, Nicaraguan officials attempted to take Borland into custody, and in the confusion, the minister was hit with a fragment of a broken bottle. United States secretary of state W.L. Marcy felt Nicaragua should apologize to Borland; the US Secretary of Navy dispatched Captain Hollins and the Cayne (American sloop-of-war) to protect company property and redress the insult. When the demands were not met, Hollins on 13 July bombarded Greytwon, destroying it entirely. President Franklin Pierce justified the captain�s action in his message to Congress in December 1854. Another uncivilized activity of this capitalism was the buying of government head/officials in the host countries. For example, in 1884 Equitable of America made Mexican President Porfirio Diaz head of its company�s Mexican advisory board. Similarly, on the European side, when New York Life�s vice president, George Perkins went to Germany to negotiate on behalf of Equitable, he employed Guidon von Nimptsch, who was a school friend of the German Minister of Foreign Affairs, Count Bernhard von Bulow. This strategy worked well in Europe also, and as a result of this work Equitable were able to continue in business. The unfair and uncivilized act of American entrepreneurial capitalism in the recent past could be the overthrow of the democratically elected president of Chile, Dr Salvador Allende, in 1973. These instances of gunboat diplomacy in Nicaragua; buying of head of state in Mexico; Perkins strategy in Europe; and the conspiratorial dethronement of an elected president in Chile speak clearly of the defects in the American model of entrepreneurial capitalism. These acts of arrogance were committed in the days when the Americans enjoyed a greater monopoly in the field of multinational enterprises. Time has changed a lot. The Americans are now facing a tough competition from Europe and Japan. This competition has compelled every entrepreneur in the world in general and the United States in particular to behave properly or be ready to lose business. The fear and dislike which most developing countries carried against entrepreneurial capitalism since many decades is now fading away. Even countries like China and India are now keen to invite the FDI on a large scale. In the year 1996, China was able to attract more than $40 billion of FDI, while India attracted around three billion dollars. Dr Herbert A. Henzler, in his book �Europreneurs�, writes: "Today, understanding the varieties of capitalism in the three regions of the Europe-US-Japan Triad seems to me easier � but also more important � than ever before. Easier, because after the decline of socialism discussion on the subject seems to have advanced several steps. More important, because each form of capitalism needs to develop further if it is to find answers to today�s most pressing problems: population explosion, poverty, preventive health care, and so on. As variations in the capitalist model emerge more clearly, the internal conflict between them is more readily apparent." In all the regions of the Triad, companies and their leaders are confronted with almost identical challenges. Also free markets, private ownership, private investment decisions, comparative advantage, and a supportive legal structure are capitalist principles of universal validity. Notwithstanding its historic victories over centralized economic structures, capitalism itself wears many different faces. In the United States, for example, an unrestricted free-market economy and individual performance are the quintessential models. Corporate executives are far more concerned with quarterly results, trends in stock prices, and the public image of their companies. By general consent, profits should benefit investors, who provide the capital. �Shareholder wealth� is consequently, the widely recognized yardstick of management performance. By contrast, Japanese capitalism is much less individualistic. It is also aimed at private profit, but it is primarily the company or the Keiretsu that benefits from growing revenues, not so much the dividend-earning investor. Japanese managers are expected to use profits to finance corporate investments, not to distribute them to stockholders or to employees. the foremost objective of Japanese corporate strategy is to win sustainable market position. Japanese top managers normally earn much less then their American, and slightly less than their European, counterparts. There is practically no class struggle in Japan, however. More than 90 per cent of Japanese people see themselves as middle-class, although many live in cramped conditions and spend hours commuting to work crammed like sardines into crowded trains. Capitalism in Europe is not a product of joint decision-making or of a unified policy. On the contrary, it grew step by step over time, often out of very different motives. It is a patchwork composed of thousands of poorly matched pieces. The differences are everywhere. Labour costs vary dramatically from one country to another; the weighted average of $17.50 per hour calculated for its manufacturing industries in 1990 is made up of figures ranging from $23.40 in Germany to $4.40 in Portugal. The fundamental difference between Eurocapitalism and the forms dominating the economies of North America and Japan does not lie primarily in the details of outward appearance; of greater significance are the underlying convictions. Meaning, in particular: Is inequality accepted, ignored or moderated? In Japan, notwithstanding the perceived homogeneity of Japanese society, there are still serious social and economic discrepancies. The economic system has managed to ignore them so far, since thousands of small Japanese companies, often family firms, still accept them without complaint. In the United States, on the other hand, with its cult of individualism, the economic system is not required to keep a close lid on inequalities. The idea of unlimited opportunities, the fairy-tale rise from dishwasher to millionaire, is still deeply rooted. Only Europeans have set themselves a twofold task: creating and sustaining an efficient economic system that upholds a multi-faceted social and cultural heritage and, at the same time, does not allow the gap between rich and poor to become too wide. In contrast to American capitalism, Eurocapitalism is bound to the terms of social contract supported by the vast majority. In contrast to Japanese model, it is highly pluralistic and aimed at protecting the basic needs of all sections of the population. None of this means, of course, that Eurocapitalism has put an end to poverty or achieved an even-handed distribution of wealth. True, the percentage of people living in poverty in the US is said to be twice as high as in Germany and one and a half times as high as in France. However, if the poverty line is drawn at around half the average living costs for one adult, around 15 per cent of the population of Spain, Greece and Britain, 9-12 per cent in France and Italy, and roughly seven per cent in Germany live below it. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970717 ------------------------------------------------------------------- Exports projected to yield $9.57bn ------------------------------------------------------------------- Bureau Report ISLAMABAD, July 16: The government on Wednesday announced the trade policy for 1997-98 aimed at reducing the trade deficit by $1.04 billion through a 15 per cent increase in exports and envisaging steps to meet the export targets of $9.575 billion. The trade deficit is projected to be reduced to $2.33 billion. Unveiling the trade policy on radio and television after the cabinet�s approval earlier in the day, Commerce and Investment Minister Ishaq Dar said imports were projected at $11.90 billion which would narrow down the trade deficit to $2.33 billion during 1997-98 as against $3.37 billion during 1996-97 which is 30.86 per cent less compared to the outgoing financial year. The trade policy envisages increase in exports including improvement in the competitive edge of exportable, encouragement of value-added exports, simplification of procedures to develop export-friendly culture and other measures to boost export-related activities. Import of 14 new items from India has been allowed in response to the demands of local trade and industry, Mr Dar said. One of the major features of the policy is that the government will offer export re-financing for computer software up to 100 per cent of export contract for 180 days. The State Bank will issue a circular in the behalf. According to details, 50 per cent of the admissible duty drawbacks will be paid within three days of the presentation of complete documents by exporters to Customs authorities and the balance will be paid after the verification of the claim. The new policy allows duty drawback for the export of cement inputs, including furnace oil. However, it was decided that the duty drawback rates of the engineering industry will be reviewed covering all inputs including fuel oil while calculating the rates. Customs duty on wet blue hides has also been reduced from 5 per cent to 0 per cent while import duty on finished and patent leather has been reduced from 45 per cent to 15 per cent. The import of raw materials and components for the manufacture of engineering goods meant for exports has been allowed duty free against bank guarantee for specific orders. The commerce minister said machinery imported by engineering units for export-related production would be subjected to zero rate of tariff up to 200 per cent of the export value and the facility will be there up to June 30, 2000. Similarly, local assemblers/manufacturers of automotive vehicles and components have been allowed duty-free assembly kits corresponding to the number of their exported units provided no duty drawback was claimed by them at the time of exports. Imports of certain items, machines, tools and equipment required by the gems & jewellery industry have been allowed duty free to manufacturers-exporters. "Priority will be given in export re-finance facility for the export of jewellery", the commerce minister said adding that there would be no sales tax on imported raw materials, components and sub-components required for manufacturing goods to be supplied against international tenders. The government also allowed, under the new policy, the import of high value-added foundation garments which are quota free. Exporters of engineering products have been allowed to establish warehouses in selected countries for specific products to enable sale of engineering goods off the shelf in foreign markets through local dealer. In this behalf, the State Bank would allow exports on consignment basis and also allow export refinancing for 250 days instead of the existing 120 days. Specific engineering and other industries have been allowed duty-free import of raw materials after the manufactured goods using imported one have been exported without claiming duty drawback. The notification for new scheme about duty drawback will be notified by September 30, 1997. Duty-free import of textile designs, artwork, transparencies (bearing design for textiles) has been allowed to the actual exporters up to 0.5% of the value of exports in the financial year immediately preceding. This facility will be available up to June, 30, 2000. The government through the Export Development Fund will share the cost of ISO 9000 certification for manufacturer-exporters up to Rs150,000/- per certification. This facility will be available up to June 30, 2000. Export of packed meat has been allowed against the import of live animals with the condition that 60% of the gross weight of live animals is exported as packed meat-beef and the foreign exchange spent on the import of animals is recovered at least in full by export of meat only. This will also improve the availability of hides and skins for the local tanning industry. The import of whole chilies and pulses has been allowed by processor-exporters against bank guarantee for re-export after value addition. The regulatory duty on the export of crushed bones has been increased from 20% to 50% to encourage local production of value- added gelatin for export. Dyed yarn and yarn of counts above 30 has been given the facility of export re-finance to encourage export of higher counts of yarn. Duty-free import of raw sugar has been allowed for re-export of equal quantity after refining. This would save foreign exchange, utilize idle capacity of sugar mills and result in value-addition. To simplify procedures so that an export-friendly culture emerges, it has been decided that:- Import of special labels, special buttons, special brand tags and other items required to be fixed on readymade garments on the request of the foreign buyers shall be allowed duty free for re- export. Import of raw materials used in stuffed toys i.e. plush fabric, nylon, polyester fibre, eyes and nose shall be allowed duty free to manufacturers-exporters for re-export. Export processing zones have been allowed to sell raw materials in the tariff areas after payment of duties and taxes under the law. Duty-free import of samples marked as such and cut by Customs will be allowed (as permissible under the Import Trade Control Order-SRO 599(I)/91) to manufacturer-exporters. In addition to the above-mentioned specific decisions, the following miscellaneous decisions have also been taken to facilitate export-related activities:- Export of all items excluding kitchen items and POL has been allowed via land route to Afghanistan and the central Asian republics at market prices on filing of regular shipping bills, without the facility of duty drawback. Private sector will be allowed and supported by the government on (BOO) Build Own and Operate basis to construct airports and set up allied facilities like transport, storage and packaging in cities and towns where exportable surplus of items like fruits, vegetables, fresh flowers, sports goods and surgical instruments is available. Local sponsors of engineering goods industries operating under foreign licences will be required to have specific provision in their agreement for buy-back arrangement or guaranteed export of 30% of the production. Export of blister copper mined and produced by the Saindak Mining Project and other areas shall be allowed as refining facilities are not available within the country. Presently, the exports of all minerals and ores are banned. In addition to the proposals for facilitating exports, the following changes have been made in the import regime. A few new items, mostly industrial raw materials are also being allowed for import from India. Construction companies/foreign contracting firms have been allowed to import construction machinery for subsequent re-export on payment of 1/5th of leviable duty and a bank guarantee for the balance duty only. They will not be required to furnish second 100% bank guarantee for the issue of import permit. Oil and gas companies and refineries can import freely importable items on the authorization of the ministry of petroleum and natural resources without further authorization from the ministry of commerce. The facilities for the temporary import of specific equipment available to the oil exploration companies or their contractors and subcontractors will be extended to multi-national mining companies as well. Units operating in export processing zones will be allowed to undertake sub-contracting for units of the tariff area subject to payment of duty and taxes on value-addition only. EP Zones have been allowed to supply goods to a customs manufacturing bond in the tariff area. Import of gold and silver is allowed to only three companies specifically registered for this purpose by the ministry of commerce. It has been decided to open this import by issuing a public notice inviting applications from interested parties. However, foreign exchange for such imports will be privately arranged by the importer as per existing practice. The import of specialized and sophisticated second hand/used (not more than three years old) surgical equipment like CT scanner, dialysis machines, reverse osmosis equipments and other similar electro-medical equipment has been allowed. The import of security paper is allowed on the recommendations of Security Printing Corporation or Pakistan Security Papers. It is proposed that for the purpose of printing of cheque books, and other security documents to be specified by the Ministry of Commerce, Pakistan Security Papers shall either give NOC to private sector parties allowing imports or the requirements of the private sector parties shall be supplied by Pakistan Security Papers from its own stocks. It will, however, be allowed only against specific orders held by the private sector parties. The import of motorized wheel chairs to the actual users has been allowed without seeking authorization from the ministry of commerce. The import of secondhand boilers, tractors and stock-lot items has been disallowed under any import regime. Licences for manufacturing bonds will be issued/renewed within two weeks of receipt of applications and shall be valid for three years, renewable for further period of three years each time. Transfer of goods from one bond to another be freely allowed under a simplified procedure. Public sector agencies participating in international tenders floated by local public sector organisations shall be exempt from furnishing bid bond and performance bond. The period of export re-finance in case of international tenders for engineering goods has been increased to 180 days. The import of Bagomatic Bladders, used in the soles of "chappals" and combat boots, have been allowed without the condition of "cut into pieces". To discourage the import of used automotive vehicles under Transfer of Residence Scheme additional restrictions have been introduced i.e. production of driving licence from country of import and verification of registration by our embassies/consulates. To facilitate the import of goods for demonstration purpose, a simplified procedure is being notified under which the customs authorities will release such import. Ministry of interior will issue, on additional payment, passport containing 72 pages to the businessmen who are members of any chambers of commerce and industry or All Pakistan Associations of Trade and Industry. Protocol passes will be issued allowing access to relevant airport lounges to the exporters having exports of dollars 10 million or more in the immediate financial preceding year. All procedures and SROs etc. to be issued by the ministry of finance, ministry of commerce and CBR will be issued within 30 days unless otherwise specified. ------------------------------------------------------------------- SUBSCRIBE TO HERALD TODAY ! ------------------------------------------------------------------- Every month the Herald captures the issues, the pace and the action, shaping events across Pakistan's lively, fast-moving current affairs spectrum. Subscribe to Herald and get the whole story. Annual Subscription Rates : Latin America & Caribbean US$ 93 Rs. 2,700 North America & Australasia US$ 93 Rs. 2,700 Africa, East Asia Europe & UK US$ 63 Rs. 1,824 Middle East, Indian Sub-Continent & CAS US$ 63 Rs. 1,824 Please send the following information : Payments (payable to Herald) can be by crossed cheque (for Pakistani Rupees), or by demand draft drawn on a bank in New York, NY (for US Dollars). 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970713 ------------------------------------------------------------------- 2010 ------------------------------------------------------------------- Ardeshir Cowasjee "AS you are aware," starts the letter, and it then continues to make me aware of what I was not aware � that Prime Minister Nawaz Sharif has made Pakistan 2010 (the start of his fourth term?) the cornerstone of his policy to bring Pakistan into the ranks of the newly industrialized nations and to transform it by that year into an Asian Tiger. The letter emanates from the Chief Coordinator of the "Prime Minister of Pakistan�s 2010 Programme", Minister of State Ahsan Iqbal, and it invites me to participate in a "stakeholder consultation process, to review and comment on policy options for good governance" for the purpose of "soliciting views on a range of policy options which will be provided at the beginning of the meeting. Policy options relate to civil services reform and downsizing, decentralisation, accountability, citizens� charter (public sector performance) and legal and judicial reforms." The writer ends with the hope that all those who have been invited will "help prioritize and revise policy options in good governance for Pakistan�s future." Many fresh ministerial posts have been created during the on- going downsizing process, with spanking new offices, filled by the usual army of favoured supporting staff and their paraphernalia. This particular new minister of state�s special division is part of the ministry of planning and development. Who and what is this new minister, I asked? A friend from the Dead City obliged. Firstly and above all, he is a FON (Friend of Nawaz), then he is an MNA from Narowal, an MBA from Wharton, and a rising star of the PML. He is on a solo flight into 2010. That explained it all. The minister requested an RSVP "as soon as possible." I rang his office, he was not there, I left a message. I rang again, he was in a meeting. The third time he was in the bathroom, and the fourth he was addressing a Press conference. There being no comeback, I wrote. "Dear Minister Iqbal, You talk of 2010. Let me bring you back to reality, as it now is, on the ground in 1997. "Each time we in Karachi leave our houses it is with the hope that we will return without being shot, that we will return alive, to find our houses as we left them and our families and belongings safe. Each time we park our cars, it is with the hope that they will still be there when we need them. "Your letter arrived soon after I received the news that my friend Navaid Hussain of the NGO SHEHRI, an organization that fights for the preservation of the environment, had been shot and lay critically wounded in the Aga Khan Hospital, fighting for his life. Why was he shot? Because he was trying to help halt, or at least slow down, the damage being done by the corrupt and the greedy to what pathetic little is left of the environment of this ruined city. He was not shot in a robbery, he was not shot in a blood feud, he was not shot out of revenge. He was targeted specifically as a lesson to the few other citizens of Karachi who are attempting against massive odds to do what he was doing. The message to us all: We can, with impunity and without fearing any retribution, shoot and kill any of you in broad daylight, and accord to the incompetent ministers and their �close advisers and supporters� photo-opportunities when they present themselves to offer �fateha�. "Three mornings prior to this, Shahid Hamid, Managing-Director of the KESC, left his house for his office. He, his driver, and his gunman were shot and killed not far from his gate. The police recovered 150 empties, proving that the killers were deadly serious and intent on doing a thorough job. Why was Shahid shot (the driver and gunman were merely incidental, of no importance)? He was only trying to do his duty as a civil servant and an officer of the Government of Sindh. I had the pleasure of knowing him over the years. He was bold and decisive, a man with a conscience and with the courage of his convictions. He did not wish to be a martyr, he sought no cause to die for, he merely wanted to live as a normal decent human being and do a good job for the betterment of his country and its people. "Shahid leaves behind an aged mother, a wife, a son, brothers and sisters, whose anguish all the thinking people of Karachi share, as they do the anguish of those left behind by the unfortunate driver and gunman. "On the day Navaid was shot, our prime minister came to Karachi in his special plane with his usual load of sycophants. They had their concern photographed, and flew back the same evening. An expensive round of �fatehas� which neither revived the dead nor consoled the living. "Men die and are injured every day, due purely to the government�s inability to abide by its first responsibility, its first duty by any book of governance, which is to maintain and enforce law and order for the protection of the lives and properties of its citizens. Forget your Wharton jargon, Minister Iqbal, and if you must �prioritize� (as you put it), then try to instill this primary rule of governance into the minds of those men who sit with you in the Assembly, with most of whom many self-respecting men would not deign to sit. "Nawaz must know that the same old gang he has brought into his government were voted in simply because the people considered them to be unnees to Benazir�s bees. They, like Benazir and her family and friends, are known better for their vices rather than for their virtues. So far, all that Nawaz and his men have done is to consolidate their stranglehold on power. Almost every act they have legislated, or ordinance they have promulgated, has been worded for that purpose alone. The first priorities of the people are to stay alive, to have drinking water, to be able to afford to eat, to have a roof over their heads, to educate their children, to keep themselves and their families in good health. These play no part in any of our governments�, or your, scheme of things. "Are you aware, Minister Iqbal, of the �human distress� figures of our country? Do you know that 40 million people live in absolute poverty, that 70 million of our people have no access to safe drinking water, that 75 million have no access to health facilities, that 95 million are deprived of basic sanitation facilities, that there are 800,000 child deaths a year, half of them linked with malnutrition? Do you know that we have one of the lowest literacy rates of the world, that 100 million adults of Pakistan are illiterate, that over 20 million children have no primary education and that over half of those who do have primary education drop out before reaching Grade 5. "Over half the cultivable land is in holdings of 50 acres and above and it is in the hands of very rich and substantial landlords who predominate our legislatures and who announce, loudly and shamelessly, that they will not pay income tax. "The defence burden is heavy. There are ten soldiers for every one doctor, and three soldiers for every two teachers. "The prime minister has had to accept as a cabinet minister an infamously corrupt man, on the excuse of majboori one supposes. On the same pretext, the chief minister of Sindh has included in his cabinet a whole bunch of famously corrupt politicians. Corruption is on the rise all over the land. "Case in point: Octroi contracts, which the Sindh government should have auctioned but did not. They were negotiated behind closed doors in the house of Jam Hyder Ali. Millions have been made. Proof: The MQM is now praising Jatoi for having been accommodating. Notoriously corrupt suspended officers, and Imtiaz Shaikh, are still found on the prowl in the corridors of the chief minister�s offices. You may get the details from the chief secretary. "Have you read Humayun Gauhar�s column, �Tiger or pussycat�, published in The Nation of July 87? From it you will learn that the budget allocation for the Prime Minister�s household is Rs 1 billion and for his secretariat Rs 1.7 billion, which means that it costs the country some Rs 75 lakhs (7.5 million) per day to keep him alive and ticking. The allocation for the President�s house and office is Rs 1.8 billion, or Rs 35 lakhs (3.5 million) per day. Can, or rather must, our poor country suffer them, at this expense. "But, going back to basics, the most essential requirement for the people of a country is the preservation of life. Democracy may be better than martial law, but martial law is better than anarchy. Martial law may be no law but at least it enforces order. "Go home to Narowal, Mr Iqbal, and set your priorities right." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970714 ------------------------------------------------------------------- The dead are other people ------------------------------------------------------------------- Omar Kureishi THE late Shahid Hamid was a friend of mine, not a close one for there was too big an age-gap between us. In our culture, the relationship could be described as avuncular. He greeted me affectionately always and his smile lit up his face. He was sunny and bouncy. He was young both in years and disposition. I had no idea that he was a troubled man whose sense of duty had imperiled his life. When I heard the news, I did not make the connection immediately. I thought it was someone else. We are conditioned into thinking that the dead are other people, not one of ours. John Donne had got it wrong that any man�s death diminishes us and we are not all involved in Mankind, involved only in ourselves. When the bell tolls, it tolls only for the dead. There is no doubt that Shahid Hamid was killed by professional hitmen. That is to say that those who pulled the trigger did so on behalf of someone else. It was a contract job and the killers had no personal enmity with Shahid Hamid. Presumably, they did it for money. Murdering people is a career. I suppose it needs a certain aptitude and perhaps in the underworld, there are training courses and diplomas are handed out at a graduation ceremony. The hit-man has always fascinated me. What is there is his make-up that dries up all feelings? We use the expression "cold- blooded killer." How does one�s blood get cold? Is it physical or psychological, what mechanism in one�s system break down? And what about those who hand out the contracts. What manner of men are they? As callous and unfeeling, as "cold-blooded" as the killers themselves? or worse? Worse I would imagine for they are cowardly in the bargain. One thing is perfectly clear. What I or any of the other columnists, Ardeshir Cowasjee, Mazdak, M.H. Askari, Riffat Hamid Ghani, M.B. Naqvi to name a few from this newspaper�s stable, write will not make the slightest difference. Thousands and thousands of words have been written about the killing fields of Karachi. All we have been doing is preaching to the converted, re-cycling despair, and perhaps, diminishing returns have set in. It is entirely possible that our readers are bored by what we write because they know that it isn�t going to make the city safe. I don�t know whether the authorities read what we write. But I�m pretty certain that the killers do not. The real tragedy of Karachi is that rather than get on a common platform and condemn the violence and mayhem outright and thereby isolate the criminal elements, we blame each other and turn by turn become the accusers and the accused. And we find ourselves on a tread-mill. Killings as such have become routine and their numbers may as well be printed on the business pages of newspapers, along with other listings of stocks and shares. It is the high-profile killings, like that of Shahid Hamid, that gets our attention and there is outrage, momentarily, and there is much talk of exemplary punishment and there is a crackdown (round up the usual suspects) and there is an increased presence of police and rangers on the streets. If the problems of Karachi are political then a political solution will have to be sought. If the problems are criminal, the existence of various mafias, then tougher solutions should be sought. The problem is that there is no way of telling which is which. It has all got intertwined and I have not the slightest doubts that our external enemies find the conditions tailor-made for whatever designs they may have. It may be simplistic to say that the will to find solutions is missing and there are political constraints but why not treat what is in effect a law and order problem as a law and order problem and proceed without looking over our shoulders to see on whose toes we may be stepping? Khalid Ansari, the editor-in-chief and owner of Mumbai�s afternoon newspaper Mid-Day sent me a clipping of what he had written recently. In an open letter to Shri Munde, the deputy chief minister and home minister of Maharashtra, Khalid Ansari came out with all guns blazing. He writes: "If, as we would like to believe you have not � heavens forbid � been the victim of amnesia are we justified in concluding that you and your government have proved to be utterly inept in maintaining law and order in the state and guaranteeing the lives and safety of its inhabitants? To aver that the law enforcement machinery is close to rigor mortis is to state the obvious. Vandalism is rampant, kidnapping on the rise, contract murders frequent. The dons of the underworld have not had it as good anywhere since the halcyon days of Al Capone in the US in the infamous roaring twenties. Whereas the impunity with which organised crime is allowed to flourish is alarming, the rapid rate at which lesser crime including vandalism of all kinds is becoming the order of the day gives great cause for concern." This is about Mumbai and it could be easily about Karachi except that it would be considered relatively mild for Karachi. Khalid Ansari makes a crack about election promises and wants to know what happened to them. It is, ofcourse, no consolation for us that other cities too have problems but there is an important difference. There is no confusion between crime and politics. In Karachi, we do not know which is which. What torments the people of Karachi is that they are at a loss to understand what is at stake in this on-going violence. Surely it is not violence for its own sake? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970717 ------------------------------------------------------------------- Not just Karachi ------------------------------------------------------------------- Rifaat Hamid Ghani FOR a Karachiite it is instructive that it needed the killing and disorder of a higher-echelon bureaucrat in this city to refocus attention on the resurgence of violence in Karachi. At long last it seems the rest have woken up to the terror and uncertainty of living in this troubled city. For years Karachiites felt as if their city and they themselves were not part of the sentient body politic. Anything could be happening in Karachi but it didn�t seem to concretise itself for those up north, especially in the cocoon that is Islamabad. The Punjabi or Pakhtun who feels threatened by the circumstances that prevail in Karachi has somewhere to go, roots to return to � even if temporarily. Where can the Mohajir go? Certainly not back to where they came from. Today�s generation of Mohajirs may not have given up anything for Pakistan, but it is the sole receptacle of their identity. And when they feel threatened, they have nowhere to escape to for safety. It is this vein of truth that the MQM tapped, and that is why whatever reservations a section of the Mohajirs or others may have about the MQM, it remains the focus of hope and assurance for the large majority of the Mohajirs and any harsh criticism of it by others is liable to be misunderstood. When opinion is aired that General Babar�s campaign and Benazir Bhutto�s prescription was the right medicine for Karachi, it can also seem as if Punjab that voted PML(N) and allied itself with the MQM to exclude the PPP politically in Sindh does not care much about the plight of the Mohajirs. Karachi has more than one kind of armed militants and political activists, but General Babar only touched one sort. It is a little like picking on a single sect for the offence of sectarian extremism. There have been keenly focused TV discussions on the phenomenon of violence in Karachi in the wake of Shahid Hamid�s brutal murder. But the discussions were out of sync with the perception that those who live in Karachi have to get reconciled to their fate as it has been for a long time and expect no respite from the cycle of violence and lawlessness that goes on unchecked. What alarms Karachiites so deeply now is that the causes are no longer contained in the parameters of Karachi�s ethnicity and contradictions and conflicts. That malaise has been left untreated long enough to have overgrown and outstripped its origins. Karachi�s tales of violence are indicative of national, administrative and political ineptitude and inertia. It has become something much larger than the MQM being used to contain the PPP, or Mohajir and Sindhi entities engaging in a slanging match. Mir Murtaza�s murder symbolizes the breakdown of public confidence in the police and reflects public misgivings about those in power can make of their clout. Shahid Hamid�s murder is generally seen as the price on honest, competent and conscientious officer sometimes has to pay for his refusal to bend under pressure or blink at things. Navaid Hussain has survived a murderous assault: he was creating public awareness about the misdeeds of the builders and a bureaucracy that did not detect or try to check their violations of the rules and standards. Corruption, a bias in accountability, the misuse of power for money and personal gains, recourse to clandestine schemes or open terror to acquire levers of control: All these form the root of Karachi�s mayhem and show themselves disrupting normal life, peace and public order in other cities and districts all over Pakistan. There is a profound disillusionment with the people who run the system and the system itself. The agony is the paucity of alternatives. Karachi�s problem is not just Karachi�s problem any more and there is no solution save a widely repentant and reformed civil and political administration. Though it may be true that Karachiites are always a little bit ahead: the realisation doesn�t seem to have gelled or traveled all the way up north or scaled the heights of Islamabad�s Margalla Hills where the ruling elite and would-be challengers alike remain impervious, seeking to score their own limited points and personal gains out of any and every development. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970716 ------------------------------------------------------------------- Riba ------------------------------------------------------------------- Hafizur Rahman ONE of the most refreshing articles in recent days was the one in Dawn Sunday Magazine of June 1 entitled "Islamic Economics: What Does it Mean?" it described in first person the thoughts and mindset of a young MBA who, instead of wanting to go abroad for his Ph.D. (like everybody else these days) has decided to acquire the degree from the International Islamic University of Islamabad. It was refreshing because it mirrored the determination of a young man who does not feel shy about his Muslim identity as most yuppies do, is not overwhelmed by western notions about Islam and its "fundamentalism," and is realistic enough to understand that if we call ourselves Muslims there is no escape for us from Islamic economics in the coming days. In this respect the writer, Shehryar Hydri, has shown more sense and boldness than the present and past heads of government in Pakistan who have tried to shove Islamic economics, particularly its most vital aspect � riba � under the carpet instead of facing the problem with some courage. They have been too fond of playing Islam to the gallery through slogans than showing any anxiety in dealing with the intellectual-cum-religious economic issue that riba is. I do not know if young Shehryar Hydri will finally join the Islamic University or not, but if he does he will be a student in its International Institute of Islamic Economics (IIIE) which is both a teaching and research organisation. For his Ph.D. he will have to read both modern western economics with all its ramifications along with the economics that forms one of the basics of Islam. The latter, as he himself informed a cynical friend who was inclined to sneer at his decision, "is about cooperation instead of competition in controlling (that) profit-making which is at the cost of others� losses." He may then like to tell his friend that the IIIE has more foreign-educated Ph.Ds on its staff than any economics department of any university in Pakistan. It has now also acquired the distinction of tackling the problem of riba with dedication and insight, displayed neither by the Council of Islamic Ideology nor by any commission or committee set up by the Government of Pakistan ever since it was decided in principle to abolish interest as known in the rest of the world. The IIIE�s report is a truly remarkable document. It not only examines the question in detail, not forgetting its international aspects, but, while showing the way to the transition, lays down a time table for taking the various steps necessary to complete the transformation from an interest-based economy and western banking to a truly Islamic economy and a banking system that is not in conflict with the shariah in even the minutest respect. The IIIE study asserts that the CIII report takes only a partial view of riba, excludes many shariah-compatible alternatives and is incomplete in several critical spheres. For example, government transactions, international transactions, central banking and a sure strategy for eliminating riba. As for the report of the Commission for Islamisation of the Economy, set up in 1992 when Mian Nawaz Sharif was prime minister earlier, the study believes that it looks at various issues from the banker�s angle, does not cover all the matters involved and is partial in examining the alternatives. Nowadays people work less and shout about it more. In fact, in some cases there is only propaganda and no achievement. Quite in contrast with this tendency, the International Institute of Islamic Economics has silently completed the study on its own, without fanfare or prompting from any quarter, and in a spirit of sheer enquiry and scholarly intent. There has been no publicity in the Press, and no PR attempt to approach the Prime Minister and present a copy to him, or at least to the Finance Minister who partly shares the embarrassment in which the regime finds itself on the question of riba before the Federal Shariat Court and the Supreme Court. I don�t know if these lines will be read by the powers-that-be but if I were the Prime Minister I would immediately send for the IIIE study, go through it, and, if it answers the all-important questions on riba, make a public acknowledgement of the time, labour and talent put into it by the experts and economists of the institute. For them it has been a labour of love, and faith. I have mentioned the time table devised by the IIIE study for moving from the un-Islamic system to the one sanctioned by Islam. In respect of banks � even foreign banks operating in Pakistan � it prescribes a day-to-day schedule both in respect of the time to be taken and the branches to be initially involved. It is a marvel of detail, and nothing has been left out. A column like this is hardly an occasion for dwelling on the finer points of an economic study, especially on a subject which is still controversial. It is controversial because almost all Muslim economists agree that Islam lays down its own economic system, but they are so educated, so trained and have developed such an orientation that they are disinclined to accept it and consider it an imposition and a bother which had best be ignored. All this makes one admire the spirit of young Shehryar Hydri who, in quest of new knowledge, has ventured to face the taunts of his westernised yuppie friends and decided to delve into Islamic economics, thus agreeing to be labelled as a "fundo" and "mullah." I hope this spirit is infectious and catches on.


970714 ------------------------------------------------------------------- Has Aamir Sohail case been really closed? ------------------------------------------------------------------- Lateef Jafri THE recall from wilderness of Aamir Sohail has apparently been made by the cricket board to strengthen the national squad for the Asia Cup, which gets going in Colombo today. He is a recognized opening batsman � a hard-hitting stroke-player � and a left-arm spinner useful for the turning wickets which may surprise any batsman with his flight and break. The above is purely a technical and cricket explanation of his selection and all experts will agree that an established all-rounder, especially whose exploits are quite known in competitive matches, was needed for the team, not raw hands for experimental purposes. However, many observers and enthusiasts of cricket are of the opinion that Sohail�s induction into the team, when he had not played any cricket for the last six months, was not entirely due to the requirement of the regional competition but perhaps to meet the demands of the federal Government and the fans in general. A day before the selection committee meeting he had paid the fine of Rs 50,000 imposed by the board for violating its Code of Conduct by giving an interview to a newspaper. The other lingering case was the allegation levelled against some team-mates of match-fixing and betting. The disciplinary panel of the PCB had not cleared him of the charge, which in the members� view was bound to affect the overall morale and ordered behaviour of the lineup in international duels. Sohail had yet to face the questioning of the board committee. The members wanted solid and documentary evidence from Aamir Sohail. He appeared before the committee for about 70 minutes and according to media rapports the cricketer could not substantiate the allegations to the total satisfaction of the PCB panel. The documents were submitted, the queries were put to him but Talat Ali, the chief of the panel, thought that the clarifications did not go to the extent of proving that some members of the team were in the habit of indulging in bribery for throwing away the matches or to use a light term were engaging themselves in betting. If Aamir Sohail could not provide the necessary papers against the accused cricketers why he was let off and included in the mainstream side? The Talat Ali Committee may presumably have given an adverse report. The two-year ban would then have been reimposed. But perhaps the board was fearful of the Federal Government�s sword of Damocles and the Chief Executive and the Chairman did not press the issue and believing that discretion is the better part of valour advised the Executive Council to close the matter. Will the issue again raise its ugly head? No, say the board officials. Yes, presume the observers of cricket affairs. The board council at its July 6 meeting at the cricket headquarters in Lahore gave approval to the constitution of a four-member committee with Justice Ijaz Yousuf as convener to go into any sort of allegation against cricketers and charges relating to match-fixing and betting in future. Will the report earlier submitted to the PCB and the verdict given by Justice (Retd) Fakhruddin G. Ebrahim on the charges levelled by Australians Tim May, Shane Warne and Mark Waugh be open to review by the new probe body. Justice Ebrahim, one of top lawyers of the country and a former member of the higher judiciary, had spurned the viewpoints of the Australians, even though the signed statements were despatched from far-off West Indies where their team was touring. The Chairman of the Ad hoc committee had vetted the papers at Lord�s and was shocked over the alleged happening, especially the offer of bribery by Salim Malik, captain of the Pakistan squad during the duels against the Australians in Pakistan (September-November 1994). Justice Ebrahim had gone through the papers submitted by the board in detail. He wanted the Australians to come over to Pakistan for questioning. The Aussies, busy in the cricket schedule were unable to accede to his demand. The result was an �ex-parte� report. No doubt he exonerated the senior Pakistan cricketer. But many take the decision with a pinch of salt. Can the Ebrahim report be considered as absolutely fair? The observers of the game would want the evils like match-fixing and bribery to be eliminated from the Pakistani cricket if it is admitted that betting is now a world phenomenon. It actually started from the earliest days of cricket when the game was a village pastime. Even during the popular Pentangular matches of Bombay there was open betting. However, fixed matches are intolerable and steps have to be taken to get rid of them. Many followers of the game have taken interest in the Indian board�s example of appointing a former Chief Justice of their country, Y.V. Chandrachud, to investigate the bribery and match-fixing charges aired by former Test all-rounder Manoj Prabhakar. "The board will not spare anyone found guilty of match-fixing," said Jagmohan Dalmiya, former Secretary of the Indian board, now heading the International Cricket Council at Lord�s. Most of the former Test stars welcomed the BCCI move with the comment: "It is definitely a positive action from the board. The sooner the allegations are proved one way or the other the better." The Aamir Sohail case was linked to the selection of the team. At least he has got the chance again in the team. Cricket fans expect the Saeed Anwar-Aamir Sohail combination to rise to the occasion again in the Asia Cup. The side has depth in batting. But can the bowling too prove equal to the onerous task in Colombo? Much can be expected from experienced pacer Aqib Javed as also from Saqlain Mushtaq, who has established himself as a world-class off-spinner. It will be a hard job for Shahid Nazir and Kabir Khan, the other seamers. Sri Lanka, the world champions, should be the favourites on their own grounds. They have proved their all-round strength in recent tournaments. India too cannot be taken lightly with the return to the squad of former captain Azharuddin, though skipper Sachin Tendulkar is complaining of selection of a weak conglomerate. All lovers of Pakistan cricket wish that its team is resilient enough to put up a better performance than in the earlier edition of Asia Cup in Sharjah (April 1995). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970714 ------------------------------------------------------------------- Century knocks in both innings of a Test ------------------------------------------------------------------- Mohammad Shoaib Ahmed Australia�s Steve Waugh wrote his name into the record books with the second century of the match in the third Test at Manchester early this month. He becomes the 39th player to perform the feat on the 45th occasion - the eleventh Australian to do so. Graham Gooch is the only batsman in Test history to score a triple-hundred and a century in the same Test against India at Lord�s in 1990. Four others have a double-hundred and a century in the same Test to their credit. Greg Chappel, Sunil Gavaskar, Lawrence Rowe and Doug Walters. Graham Gooch�s aggregate of 456 runs (333 plus 123) is a world record in Test cricket, outstripping by a long chalk the two previous records for the highest aggregate by a batsman in a Test, Greg Chappell�s is the 380 (247 plus 133) Aus v NZ (Wellington �73-74) and Andy Sandham�s 375 (325 plus 50) Eng v WI (Kingston �29-30). Sunil Gavaskar holds the record for registering separate hundreds in the same Test on as many as three occasions, whilst England�s Herbert Sutcliffe, Australia�s Greg Chappell and Alan Border, West Indies� George Headley and Clyde Walcott have each done it twice. The West Indian Lawrence Rowe is the only one to perform this twin century feat on his Test debut. The Australian skipper Allan Border was the only one to register 150-plus in both innings. The Sri Lankan Duleep Mendis is the only one to hit exactly the same scores in each innings. Two brothers from Australia, Ian and Greg Chapell, created a unique and hitherto unprecedented record of both hitting two separate �tons� in each innings of the same Test. The feat of a batsman scoring a century in each innings of a Test has taken place most often at Adelaide (six times) followed by three instances each at Calcutta and at The Oval. It has happened twice at each of eleven other venues. Christchurch, Karachi, Melbourne, Manchester Wellington, Lord�s, Johannesburg, Georgetown, Kingston, Port-of-Spain, and Hamilton and once apiece at eleven more centers: Auckland, Bridgetown, Brisbane, Colombo, Dacca (formerly the eastern wing of Pakistan), Durban, Hyderabad (Sindh), Lahore, Madras, Nottingham and Sydney. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970714 ------------------------------------------------------------------- Juniors-seniors mix in hockey a failure ------------------------------------------------------------------- A. Majid Khan Pakistan juniors hockey team is currently touring Poland for a four-match series against their seniors squad and by the time this article appears in print the outcome of series might be clear. The current tour of the Pakistan junior squad is the last preparatory outing for the sixth world juniors Cup, scheduled in Milton Keynes, England, from September 17. According to the announced programme by the Pakistan Hockey Federation the final camp of the team is scheduled from Aug 3 at Karachi. The present juniors squad of 16 includes senior players who also played for the national seniors teams in the Madras Champions Trophy last December five-nation Golden jubilee tournament in Karachi in March this year toured with the Pakistan team which played drawn series against Australia and four-nation tournament in Holland in June. Among these players are Goalkeeper Ejaz Khokar, fullbacks Tariq Imran and Ali Raza, halfbacks "Aseem Ahmed, Irfan Yousuf, and forwards Babar Abdullah and Mohammad Khalid junior. All these seven players are in the seniors team currently on the tour of Poland and are considered the most experienced ones. Their induction into the team was aimed to make the juniors squad, a winning squad for the September World Cup. Whatever may be the motive of the PHF selection committee and the team management it has its own negative impact on the seniors squad for it has so far not be moulded into a strong combination. Later the seniors team finished disappointly third in Karachi five-nation tournament, failed to win the four Test series against Australia and turned out to be a big disappointment in the four-nation event in the Netherlands. Knowingly or unknowingly the eslablished international players in the Pakistan seniors squad were discarded in the name of rebulding the National team for the 1998 Seniors World Cup. This policy seems to have resulted in a weakening of both the seniors and the juniors team. We had a very bad experience when the Pakistan juniors squad, which had eight 1988 Seoul Olympians plus one player of 1986 Senior "World Cup, suffered the biggest humiliation in the 1989 world Juniors Cup in the Malaysian city of Ipoh. Pakistan failed to qualify for the final and got the bronze medal of the 12-national final round by securing third place. It was rated as the strongest Pakistan team but failed to come up to the expectations. It seems the policy makers were wrong in inducting so many olympians in the juniors side. No other country at Ipoh had so many Olympians and World Cuppers in their sides for they had a different system of raising the juniors and seniors teams. There may be one or two highly outstanding players, who stole the great honour of representing the seniors team and not so many players playing both for the seniors and juniors team as Pakistan had in Ipoh. The Ipoh humiliation might have been fogotten by the PHF policy makers since they have adopted virtually the same policy by including seven players in the juniors team. Let us hope this time they come out successful. The record shows otherwise as after winning the inaugural 1979 world juniors Cup, Pakistan had miserably failed in its five previous attempts to regain the title. In the last championship at Barcelona Pakistan did reach the final but lost to Germany who will be defending the title in England. Recently Germany�s junior team undertook Pakistan tour and lost the series by 0-4 but its manager said a good number of juniors could not come because of their studies and domestic reasons. However the victory for Pakistan juniors was a great morale booster in the home series. The juniors current tour of Poland is very important for if we lose or draw the series, we would be right in saying that we did fairly well against Poland�s national seniors team and victory indeed would help in building new confidence in the team. Whatever may be the outcome of the Poland tour, the Pakistan juniors squad of 16 would remain unchanged as its team manager Samiullah and coach Ayaz Mahmood are against any change in the team playing together for about two years. The PHF selection committee too had endorsed the view of the juniors team management when it rejected the rightful claim of fullback Sohail Abbas emerging as penalty corner specialist, by retaining the squad, that won the Asia junior Cup in Singapore last year. It took every body by complete surprise when the PHF selection committee named 20 standbys, surpassing its all previous records. Normally eight or ten players are named as standbys. But the committee retained all those who were not picked in the juniors team for the Poland tour as standbys. It is both an unusual and expensive experiment. It is high time that the PHF adopted a clearcut policy of raising seniors and juniors teams independently, as done in other top hockey playing nations of the world instead of sacrificing established internationals by substiting substandard juniors. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 970715 ------------------------------------------------------------------- Jansher agrees to participate ------------------------------------------------------------------- Farhana Ayaz ISLAMABAD, July 14: World number one Jansher Khan will play in the Pakistan Open and will also represent Pakistan in the World Games at Lathi, Finland, this year. The world champion reversed his decision of not playing in Pakistan following a two-hour meeting with Air Marshal Aliuddin, senior vice president, Pakistan Squash Federation, at Air Force Headquarters on Monday. Before going back to Peshawar, Jansher confirmed that everything has been sorted out during the meeting with the PSF official. Talking to this correspondent, AM Aliuddin said all matters were generally discussed and sorted out. The official said that Jansher has agreed to play in Pakistan Open as initially the dates did not suit him. The new dates, he said, don�t clash with his other schedule and appearances to which he has committed. "Hopefully, he will win the title for the 12th consecutive time," the official said. Before the Pakistan Open, the world champion will represent Pakistan in the World Games to be held at Lathi, Finland, in first half of August. "We had written to Jansher about the event in March but somehow he never got the mail. However, I have shown him the letter signed by me asking his availability for the world event." Elaborating the points discussed in the meeting, the official said that Jansher gave various plans for the improved standard of training/coaching of the juniors. "He appreciated the programme of juniors� training but was not satisfied with the standard of coaching," AM Aliuddin said. The world champ wants world standard coaches to be associated with the juniors� training. It may be added here that PSF launched a one-year juniors� training programme in order to reduce the existing gap between Jansher and other Pakistanis at world ranking. Mohibullah and Qamar Zaman who was associated with the juniors coaching were replaced after three months which angered Jansher. Clarifying the official position, AM Aliuddin said that after three months, the youngsters dispersed to figure in various tournaments and in order to spot a junior lot for the 1998 Junior World Cup, the junior clinic was shifted to Wah. Jamshed Gul is currently training the lot at Wah. The second point discussed was lack of coverage by PTV. "We agree with Jansher but since coverage on PTV is pretty expensive and the federation was not in a position to pay so much money or generate the amount, we would request the concerned authority and emphasise on them the need for coverage of squash on television for the popularity of the sport." Meanwhile, a divisional champion and one of the top under-14 juniors Haider Jamal from Fetahjang was interviewed by BBC world service on Monday, as a step to satisfy Jansher Khan. Haider�s father was in Islamabad trying to get a sponsor to send his son to next month�s Hong Kong Open. On the subject, AM Aliuddin said that although he is not the top junior in his category but Imran, Majid and Haider have the potential to hit big in world squash in future. Back to the top.

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