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Week Ending : 20 September 1997 Issue : 03/38
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SC justifies NA dissolution
Documents show Benazir's link with Surrey property: SC
Provide justice to people at local level
4m people have no access to piped water
Switzerland freezes Benazir's accounts
Ministry receives complaint against Ehtesab officials
5 Iranian cadets killed in ambush
Government to encourage globalization of OGDC
GHQ seeks Rs740m for census assignment
---------------------------------
Pakistan's opportunity to profit from crisis in 'tiger' economies
Rightsizing or downsizing, both imply social disaster
Lessons from the East Asian experience
100 per cent depreciation on import of machinery
Intel opens office in Pakistan
MIGA insures investment in 3 projects
Privatization of Lahore, Islamabad Motorway
Index recovers 7.36 points, despite PTCL weakness
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Spin doctors Ardeshir Cowasjee
Non-graduates, etc. Hafizur Rahman
The mad, the bad and the sad Irfan Husain
Vulgar display of prosperity Sultan Ahmed
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National Games report sets good precedent
Wasim Akram to lead sixes team to Hong Kong
PCB not to take any action against Inzamam
Pakistan lose 3rd match, series against India
Pakistan to play Tests in S.A.
Hanif blames Inzamam and Ramiz for Toronto holdup
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970914
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SC justifies NA dissolution
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Bureau Report
ISLAMABAD, Sept 13: The Supreme Court of Pakistan on Saturday released the
detailed judgment in the dissolution of National Assembly case, and held
that judiciary was ridiculed by the former prime minister, and attempts
were made to harass the judiciary.
The judgment is spread over 694 pages (including dissenting judgment by
Justice Zia Mehmood Mirza), and the majority observed that the PDF
government deliberately avoided to implement the Supreme Court judgment in
Judges Case and introduced a bill to harass the judges.
The dissolution of National Assembly on November 5, 1996 was upheld by
majority decision of 6-1 in February 1997. A short order was issued with
direction that detailed judgment would be released later on. It was
released on Saturday, seven months after the decision.
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970914
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Documents show Benazir's link with Surrey property: SC
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Bureau Report
ISLAMABAD, Sept 13: The Supreme Court of Pakistan on Saturday held that
Benazir Bhutto failed to deny allegations regarding the purchase of Surrey
Mansion, and sufficient documents had been produced to " show the
connection of petitioner (Ms Benazir Bhutto) and her husband with the
property in Surrey."
"If the petitioner (Ms Benazir Bhutto) chooses to issue a general
disclaimer by simply saying that she denied that she or her husband had got
any such property in England she could say so but the record speaks for
itself," the Supreme Court said.
The Supreme Court in its detailed judgment on the petition of Ms Benazir
Bhutto in dissolution of National Assembly discussed the Surrey Mansion
issue at length, and came to the conclusion that mere disclaimer by the
former prime minister was not acceptable.
President Farooq Ahmed Khan Leghari had listed the purchase of Surrey
Mansion as one of the corruption case in the long list of alleged
corruptions by the highups of the PDF government.
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970915
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Provide justice to people at local level
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Staff Reporter
LAHORE, Sept 14: Prime Minister Nawaz Sharif on Sunday directed the
administration and police to provide justice to people at the local level
so that they did not have to approach the head of the government to have
their problems solved.
The prime minister said in case the officials failed to help the aggrieved
and the disappointed people came to the Prime Minister's House, the
government would take stern action against the bureaucrats concerned.
Mr Sharif asked the Punjab chief secretary and the inspector-general of
police to issue immediate instructions to the administrations of all
districts to extend all possible help to the needy. Otherwise, he warned:
"We'll hold such officials answerable."
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970916
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4m people have no access to piped water
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Azizullah Sharif
KARACHI, Sept 15: Around four million people in the city have no access to
piped water and around seven million are deprived of sewerage facilities.
A study undertaken by the Sindh government in connection with the Private
Sector Participation (PSP) Phase-II in the KWSB reveals that of the city's
estimated 11,800,000 population, only 66 per cent people have access to
piped water, while sewerage facilities are available to merely 40 per cent.
The Karachi Water and Sewer-age Board (KWSB), the municipal water and waste
water provider for the entire metropolis, at present gets 380 million
gallons of water per day (MGD) from Indus and Hub sources. It has, so far,
provided 850,000 connections and its turnover, excluding tankers, amounts
to 48 million US dollars.
The study further states that with a view to improving water and waster
water services in the megapolis, the KWSB's management and the city's water
and sewerage systems would be finally handed over to the would-be operators
by June 1998 under the PSP plan.
For achieving this purpose, a schedule of involving the private sector has
already been chalked out and accordingly Oct 10 has been fixed the deadline
for expression of interest.
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970916
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Switzerland freezes Benazir's accounts
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Bureau Report
Islamabad, Sept 15: Senator Saifur Rehman, chairman of the prime minister's
Ehtesab cell, and Law and Parliamentary Affairs Minister Khalid Anwar told
a joint news conference here the Swiss police had blocked the assets of
Benazir Bhutto, Asif Zardari and Benazir's mother Nusrat Bhutto in
connection with a corruption inquiry.
They said: "The Swiss government accepted our request and ordered the banks
to freeze the accounts." They further said that the freeze order had gone
into effect from Sept 8.
The senator and the minister named the banks as Union Bank of Switzerland,
Barclays Bank, SA Citibank (Switzerland) and Cantrade, Ormand, Burrus,
Banque Privee SA.
The senator said Ms Bhutto and Mr Asif Zardari had deposited the disputed
money mainly in the Union Bank and Citibank, Geneva. He also alleged that
the couple had established various offshore companies which had been duly
registered in accordance with the Swiss law. They had subsequently opened
bank accounts to channel the commission and kickbacks.
Responding to a question, Mr Saifur Rehman claimed that on the basis of
"relevant documents" received from foreign banks regarding the "ill-gotten"
money the couple had deposited in those banks, references were being
finalised and would soon be sent to the chief Ehtesab commissioner for action.
The senator distributed what he claimed were "documents" purported to show
foreign bank accounts in the names of Ms Bhutto and Mr Asif. He also
circulated "documents" transactions showing that "millions of dollars" had
been deposited in these accounts.
Sen Rehman claimed that the government was seeking the assistance of
British and French authorities with a view to getting the alleged accounts
owned by Ms Bhutto and her husband frozen in those countries.
Sen Rehman, replying to a question, claimed that gold worth Rs20 billion
had been imported through ARY in three years and the commission went to Mr
Asif Zardari, which was subsequently deposited in his different Swiss
accounts.
Asked how much money had been deposited by the couple, he conceded that
according to the Swiss law it was difficult to know the actual amount. "But
we have proof that 80 million to 100 million dollars had been deposited,"
he said, and added that the actual amount was much more and that it would
be made public in "due course".
To a question about the specific defence or privatization deals in which Ms
Bhutto and Mr Zardari had allegedly received kickbacks, Sen Saif claimed
that the deals for the purchase of submarines and helicopters were
finalised after a hefty share was given to them.
He said the privatization of the Kot Addu plant was an example as the Kot
Addu power plant had been sold to a British group for $200m only although
it could fetch $1 billion.
"Then Benazir and Asif Zardari allowed the two preshipment inspection
companies - Cotecna and SGS - to evaluate import duties and they regularly
got commission from them which was transferred to Swiss banks," the senator
alleged.
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970918
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Ministry receives complaint against Ehtesab officials
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Our Correspondent
ISLAMABAD, Sept 17: The ministry of finance is reported to have received
complaints from bank officials regarding the Ehtesab Cell overtures to them
to reveal details on foreign currency accounts of numerous depositors,
against the pronounced government policy against it.
Last year, a number of Central Board of Revenue officials were suspended
after orders were received from the Prime Minister's Secretariat, charging
them for approaching banks for information on foreign currency accounts.
These officials had sought information on a number of taxpayers' accounts
suspecting transactions that were concealed while filing tax returns.
Following these reprisal orders, the PM Secretariat had issued strict
instructions to the banks against release of information on foreign
currency accounts.
Lately complaints were made to different banks officials by accounts
holders who sought confirmation on whether the officials were allowing
Ehtesab officials to collect information on their balances and other
details, pointing out that this was against the government policy of
protection to such accounts.
The banks officials are reported to have leaked the "requests" to certain
accounts holders, unofficially. Some of the accounts holders are reported
to have spoken to the banks officials in Karachi, Lahore, Islamabad and a
number of other cities, who advised them to seek legal advice in this
connection.
Some of these accounts holders, thinking that since they had nothing to do
with the persons and groups that were facing charges of corruption, made
complaints to the PM Secretariat and the ministry of finance officials.
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970918
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5 Iranian cadets killed in ambush
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Bureau Report
RAWALPINDI, Sept 17: Five Iranian civil aviation trainees and their
Pakistani driver were ambushed by three unidentified gunmen at Chuhr Harpal
Chowk here on Wednesday morning, the police said.
Five of the victims died on the spot and the sixth - an Iranian trainee-
breathed his last on way to the Combined Military Hospital.
The Iranians, who were receiving technical training in Pakistan, were going
to the training school in a Toyota Hiace (PRT 1145) when they were attacked.
According to the police, three assailants, one of them wearing a mask,
ambushed the vehicle carrying the five Iranian trainees, who included
technicians and engineers - Murtaza Khakpur, Ali Raza Jehani, Jamshed
Karimi, Hussain Asghar Washegan and Mohammad Khusro Abdi - at 7:12am and
opened fire on it.
The driver of the van, Mohammad Asif, and four Iranian trainees died on the
spot and the fifth Iranian, Mohammad Khusro Abdi, died on way to hospital.
Two passersby were also injured in the shooting.
According to a ministry of defence statement, the Iranians belonging to the
ministry of defence and logistics of armed forces of Iran were undergoing
technical training, ranging from 7 to 12 weeks, which was conducted at a
base in Rawalpindi and Pakistan Aeronautical Complex, Kamra.
They were staying at the hostel of the Pakistan Ordnance Factory at Wah,
and on Wednesday morning were going to the Air Aviation School, Dhamial,
when they were attacked.
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970919
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Government to encourage globalization of OGDC
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Our Correspondent
ISLAMABAD, Sept 18: The Federal Government will encourage the Oil & Gas
Development Corporation (OGDC) to extend its exploration and production
activities beyond Pakistan, particularly in the Central Asian countries,
Petroleum & Natural Resources Minister Ch. Nisar Ali stated here on Thursday.
While speaking at a briefing held at the OGDC Headquarters in which the
declining production of indigenous oil figured prominently, according to an
official source, the minister said his government considered the OGDC a
strategically important organization and, as such, expected it to become a
vibrant and dynamic exploration and production company in order to
substantially reduce the country's dependence on energy imports.
He said the government was about to unveil an offshore package in a matter
of weeks and hoped that the OGDC would take a head start in exploration of
the under-sea oil and gas resources of Pakistan.
During the meeting, the progress of important on-going projects of the OGDC
was reviewed and the need was voiced to further improve the technological
expertize in the corporation.
While appreciating efforts of the management for improving the situation
after the dire straits the previous government left it in, Ch. Nisar
assured his ministry's full support in resolving issues and problems being
faced by them. He, however, emphasized on making up for the lost time and
bringing about improvements in all aspects of the OGDC working.
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970920
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GHQ seeks Rs740m for census assignment
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Faraz Hashmi
ISLAMABAD, Sept 19: The General Headquarters has sought Rs740 million to
spend on 127,000 officers and Jawans required to supervize population
census next month, a source said.
The census organization had already paid Rs540 million to the armed forces
in advance to mobilize the manpower required for conducting the much
delayed census, he added.
Meanwhile, a 12-week training course of the 300,000 civilian employees for
carrying out the highly sensitive exercise had already been initiated by
the census organisation to ensure collection of correct data about the
demographic growth during the last two decades. The United Nations figures
at present put the total population of the country at 137 million and an
annual growth rate of 2.7 per cent.
The whole country had been divided into 174 census districts, and deputy
commissioner in each district would supervize the exercise of house and
population enumeration, he added. In the federally-administered tribal
areas the political agents would oversee the population count.
Each enumerator would visit at least 140 houses in his target area and
would be accompanied by a non-commissioned officer of the army to ensure
correct entries in the prescribed form.
The enumerator would have to fill the forms with a lead pencil which would
be fed to the computers.
Earlier the population count had to be abandoned twice as highly
exaggerated figures about the population growth had been received from
certain areas, particularly from the interior of Sindh because of the
intense ethnic strife.
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970915
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Pakistan's opportunity to profit from crisis in 'tiger' economies
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Sultan Ahmed
FOREIGN direct investment in Pakistan continues to be far short of even the
modest targets set by successive governments in recent times. And yet as
Pakistan's own investors are shy of making substantial investments and
prefer to hold their capital in dollar deposits to the extent of $8.5
billion in banks here, the Nawaz Sharif government too is looking more and
more towards the elusive foreign investors.
A great new opportunity is presenting itself to Pakistan to attract far
more foreign investment now following the setback to the "tiger economies"
of East Asia, beginning with the South Korea earlier and the debacle in
Thailand now after its very rapid growth and what seemed its total
transformation.
Overseas investors, particularly, the large pension funds of the US with
their trillions of dollars are looking around for less risky and more
profitable investment in other countries. And if Pakistan puts her economic
house in order and makes itself more attractive to foreign investors on a
lasting basis, a good deal of foreign investment can come to it now.
Pakistan has to realise that the phase of direct foreign investment in the
power production sector is over as the there will be a large surplus
capacity after all the projects come on-stream in a year or more followed
by HUBCO with its 1.3 MW capacity.
The government is now hoping to receive large foreign exchange through
privatisation as through the sale of Kot Adu power complex for $164 million
dollars in 1995-96 and the earlier sale of 10 per cent shares of Pakistan
Telecom for $900 million. However, when more foreign investment comes
through the proposed fast track privatisation that will be replacement
capital and not to create additional manufacturing or other major
productive capacity. Clearly what the country needs is not only replacing
the domestic or official capital with foreign capital but also expanding
the productive capacity of the country in a big way to speed up its
sluggish economic growth.
Misleading
The government is coming up with misleading figures of foreign portfolio
investment or investment on our shares. Official figures show that a total
of $ 267.4 billion were invested on our shares in 1996-97. But the
President of the Karachi Stock Exchange, Arif Habib, giving details of
inflows and outflows each months says Rs 8.4 billion came in 1996-97 and Rs
7.6 million went out, resulting in a net investment of RS 774 million which
is below $20 million.
Clearly the government is taking into account what comes in to buy our
shares and not what went out, and that is very wrong.
Even his figures for July last shows that while Rs 5.3 billion came in as
portfolio investment, Rs 52 billion went back, showing a nominal net
investment of Rs 79 million or less than 2 million dollars.
And now, when foreign investors are pulling their portfolio and currency
investments from several East Asian countries because of the sharp fall in
the extended value of their currencies and Prime Minister Mahatir Mohammad
is raving about it, Pakistanis have been talking of a sizable devaluation
of the rupee, and our exporters are insistent on that. That could mean that
many of the investors, direct as well as portfolio investors, would wait
for sometime to see the emerging picture. If we devalue the rupee they will
get more rupees for the dollar to come in to buy shares and will lose some
money when they sell the shares they had already bought, or their
investment in foreign in dollar terms will go down.
Mr Mohibullah Shah as Secretary of the Board of Investment under Benazir
Bhutto talked of $5 billion of foreign investment within three years. What
is striking is that even out of less than $3 billion a half of that came as
portfolio investment $900 million for 10 per cent of the PTC shares and
$164 million for the Kot Adu Power House.
It is also notable that Japanese investment in Pakistan has been very
small-compared to the US and Britain. Pakistan does not qualify for
large-scale foreign investment on the basis of its stiff criteria for
investment. So Japanese investment in Pakistan last year was only $43.5
million compared to $95.4 million in 1995-96 when it made a substantial
investment on power companies.
Japanese portfolio investment has also been small in spite of the very
large investible capital it commands. Will Japanese investment in Pakistan
increase after it has been rather disillusioned with some of the East Asian
'Tigers' led by Thailand where it made very large direct investment - in
joint projects numbering about 2,000 companies.
And the Japanese are foremost among foreign investors persuaded by Pakistan
for long to invest more in Pakistan in asking: "if the investment climate
is so good why are Pakistanis who know the facts better, not investing? Why
are they keeping their money in foreign exchange accounts in Pakistan".
The official Pakistan reply often is that those depositors get rupees in
lieu of the dollars and at low rates of interest and use it. But the fact
is that few of these depositors make use of that money for fixed
investment. Instead they use it for trading and speculative purposes where
quick profits are assured.
So if the government wants to promote large scale foreign investment, it
has to persuade and reward the Pakistani investors and eliminate their
problems which are quite many in reality as opposed to liberal paper policies.
The government is scheduled to come up with a new investment policy more
acceptable to foreign and local investors. And its officials have been
talking of a new law guaranteeing protection against nationalisation and
seizure of invested assets. Anyway, the time for nationalisation is over
and privatisation is in. What is far more important is not only assured
profitability of foreign enterprises but also their steady growth and scope
for diversification.
While the government may lover the foreign exchange it gets through
privatisation or direct foreign investment what the country needs is
foreign investment that creates large new manufacturing capacity,
particularly for export or for import substitution using largely Pakistani
raw materials. We don't need foreign investment in trading companies and
not more of food and beverage companies like Pizza Hut, Kentucky Fried
Chicken and MacDonalds and Wimpys, Coca-Cola and Pepsi companies although
they have their uses to make foreign investors feel culinarily at home.
When Prime Minister Nawaz Sharif addressed the Overseas Investors Chamber
and the American Chamber in Karachi last week he described foreign
investors already here as Pakistan's ambassadors to attract further foreign
investment. There he was utterly right.
In fact two of the German company chiefs in Pakistan, who were previously
in South Korea, told this correspondent that in the earlier days when the
government in Seoul wanted more foreign investment the first thing it did
was to send for the foreign investors already there and talk to them about
ways and means of attracting more capital and seek their help.
Such an approach pre-supposes the government would first of all solve the
major problems of foreign investors already in the country and try to
eliminate the rest. By that criterion foreign investors in Pakistan have
too many basic problems and irritants and they came up with a litany of
complaints at their meeting with the Prime Minister.
Foremost among the complaints was massive smuggling in of manufactures in
Pakistan on which the duties and taxes are high, particularly on
cigarettes, toilet soaps, and tea, which is now smuggled in via Iran
instead of Afghanistan. The fact is in such highly taxed areas the
advantage of economy of scale is with the smugglers rather than with the
industries with their heavy taxes and high-cost of production, including
for energy and working capital. The government has through the June budget
reduced the duties on them, but not low enough to bar massive smuggling.
Hence smuggling flourishes. While the Pakistan Tobacco has suffered a heavy
loss for the first time in six years, and Lever Brothers have has suffered
a fall in profits despite the rise in sales in monetary terms.
High duties
The second complaint is high duties and taxes on manufactures than an
imported goods and making no fiscal accommodation for the high cost of
production and break-down conditions at home due to social or political
unrest and frequent infrastructural failures.
The third common complaint is lack of consistency in official investment
and fiscal policies. There is not only frequent change of governments but
also changes in the policies of each government. And while taxation keeps
on varying, the CBR has a way of negating what is announced as a fiscal and
monetary policies and bringing in additional taxation through SROs.
Foreign investors asked the Prime Minister for a five-year taxation policy
instead of frequent taxation changes so that they could plan their
investment on that basis and invite other investors too to do likewise.
That has been the demand of Pakistani investors as well who had asked for a
at least a three-year tax policy. The also want the vexatious anomalies in
taxation to be eliminated instead of having to endure ceaseless hassles
with the various tax-collecting agencies.
They want a rational labour policy instead of a rigid, over-protective one
violated with impunity by Pakistani investors, particularly textile mills
but honoured by multinational companies at a heavy cost. Trade unions also
tend to be more assertive in multinational companies despite the better
conditions prevailing there and manage to get far more for themselves.
And although multinationals are being treated more like Pakistani companies
now there are areas of discrimination like foreign banks not being allowed
to write off bad loans for taxation purposes while public sector companies
are permitted after approval of the State Bank of Pakistan.
A great deal of uneasiness was caused among foreign investors when the
Nawaz Sharif government sought to proposed to negotiate the terms of the
foreign power projects, but that move has been wisely been abandoned as
that can tantamount to opening a Pandora's Box.
Above all, there is the eternal complaint of the lower bureaucracy and the
civic agencies not cooperating, and acting contrary to the policies of the
top rulers and announced with great fanfare. And that promotes corruption
on a wide plane or their negative approach is the result of the pervasive
corruption.
These problems have to be attended to earnestly by the government and
solved despite the impediments in the way. It that is not done the
multinationals may not only not act as our investment ambassadors abroad
and not send positive signal abroad and when foreign investors come here
but also not expand their production facilities here save rare exceptions
like ICI and Levers Brothers.
The new investment policy designed more to win over foreign investors,
should take all these factors into account and solve such problems.
Otherwise we may lose the great opportunities suddenly offered by the major
crisis in the 'tiger' economies of East Asia.
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970915
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Rightsizing or downsizing, both imply social disaster
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Dr. Mahnaz Fatima
CALL DOWNSIZING by any name, it is downsizing all the same. Of late, the
government's functionaries have picked up the term, rightsizing to shield
their efforts at mindless downsizing of government agencies in general and
banks in particular.
A reported plan to lay off 30,000 to 40,000 bank employees cannot be termed
rightsizing by any stretch of imagination, for, if the country offers an
expanding environment to foreign and private domestic banks, there is no
reason why the same should be denied to HBL, UBL, and NBP.
So, in an environment that is offering good opportunities for growth to
foreign and domestic private sector banks, despite a stagnant formal
economy; the public sector commercial banks (PSCBs) should be rightsized
and not downsized per force as above.
Rightsizing would entail a restructuring of the banks with a view to making
them more responsive to the external environmental opportunities.
This would create challenging work for employees thus better utilising
their talents and potential that were being inhibited or wasted due to an
ineffective top two to three layers of public sector management at these CBs.
Lessons could be learnt from the previous management of MCB that had been
able to turn the bank around without causing the kind of casualties that
the current top managements at the public sector banks reportedly plan to
inflict on them.
While the forced paid leave of senior HBL executives could be supported in
the interest of both the bank and the employees at large, as explained in a
previous article, the measures taken since then and being contemplated now
need an evaluation.
Inhuman policy
The HBL's forced retirement of some 1,100 employees at the age of 55 would
be found unacceptable on both the grounds of efficiency and humanitarianism.
Severing the employees at this age when the dependency burden on them is at
its peak and mobility limited, can only be termed inhuman.
Another germane question would be that was this age-group of employees the
most inefficient if a correlation between age and inefficiency has been
discovered at this bank?
If not, then at this age, they should have been expected to contribute
significantly to their organization by virtue of their accumulated
experience if mobilised in a productive direction by the top management.
And, this is what was expected from the new top managements at these three
public sector banks.
That is, a better utilisation of staff and their re- designation in a
manner that would bring the best out in them with a view to making these
organisations competitive with their private sector counterparts.
Instead of utilising their known bank management expertise, the new
managements at HBL, UBL, and NBP seem to be following an agenda dictated by
the government which, in turn, is dictated by the World Bank and the IMF.
That is, to throw people out without assigning acceptable reasons and to
close down the loss-incurring branches without ascertaining precisely why
some of the branches are making losses that could even be a function of the
costing/accounting practices or the manner in which overheads are
allocated; without truly attempting to recover defaulted loans; without
studying the goals, objectives, and mission of these three banks; and
without making any credible organisational restructuring and development
move worth the name.
Superfluous loan
However, on the basis of the number of branches closed and the number of
employees severed, the government will qualify for a World Bank
restructuring loan for Pakistan's banking sector which perhaps will become
superfluous after the key public sector commercial banks are axed to
oblivion as above. So, the top men at HBL, UBL, and NBP need to understand
that they are being used to finish the unpopular task of Burki et al. of
the 1996 caretaker setup and, in doing so, they are putting their hitherto
good professional reputation, if not their careers, at stake.
The government of Pakistan might, however, put feathers in their caps after
the above hangmen's job is done and the banks privatized by early 1998 as
keenly awaited by the Bretton Woods institutions. For, it is privatisation
that the various governments of Pakistan have been wanting to excel in to
keep receiving pats on their back by the foreign financiers.
However, if privatisation was to be aimed at through the sole means of
mindless downsizing, then downsizing could have been done by decree rather
than by buying the expensive time of high- calibre Pakistani bankers.
In this dirty job, however, the key financial decision makers of the
country are hiding behind the good professional reputations of the Soomros
and Shaukat Tarin. The sooner they realise their 'utility'; the better it
will be for the banks, their employees, and the public image of the top men
themselves at the three key public sector commercial banks.
For, we expected these banks to be turned around and not miniaturised that
would also amount to a reduction in competition for the thriving foreign
and private sector banks. And, one can only hope that this was not yet
another motive behind the above downsizing exercise, for, if it was, then
it would certainly betray a congruency of interest amongst the key players
involved!
In its exuberance to rapidly privatize the banks, even the First Women's
Bank (FWB) could not escape the net of the Privatisation Commission. This
was one bank that recorded an extremely high recovery rate of the order of
90 per cent or above and remained profitable in all years but one.
There has been an uproar against its privatisation and it is hoped that the
government would lend its ears.
The FWB should be allowed to pursue its socio-economic objectives of the
uplift of downtrodden women in the country with the freedom that it can
enjoy only in the public sector which would also afford it an opportunity
of a balanced emphasis on commercial objectives. It is hoped that, at
least, the FWB would be spared.
There is a further gross misunderstanding in the country that privatisation
can be done only after downsizing the organisations.
It would be worthwhile to recall some of the lessons that two American
experts in privatisation tried to teach in Pakistan recently.
The first expert served as a consultant in the privatisation process in
Poland. Poland is usually cited as an example in successful privatisation.
According to this expert, the Polish privatisation experience was without
lay-offs. The jobs were not threatened because of which the employees
participated in making the privatisation effort a success and in turning
the organisations around.
According to a second expert who is a Columbia University academic,
privatisation is a people's process and unless the people are involved,
their interests safeguarded, and they are expected to gain from the process
immediately, it would be difficult to ensure the popularity of the
privatisation process as is the case in our country.
In contrast, here people are laid off and told to wait for jobs and their
trickle of benefits until the private sector makes the organisations
productive and efficient minus the bulk of the people.
In the meanwhile though, people hear about swelling of Pakistani bank
deposits abroad (some $30 to 40 billion currently) and capital flight as
they wait for jobs and benefits amidst stories of Pakistan's business and
industry's perpetual infancy, repeated rounds of incentives and
concessions, and more and more of strings-attached foreign loans that might
again be siphoned away.
Only the naive would buy into the "benefits from privatisation" promises
being made again as there is a half century of history to make the people
skeptical and cynical.
The most recent history of downsizing itself provides even more reasons for
the growing cynicism in the country.
The downsizing decision was to be taken by the federal cabinet and one
wondered if the cabinet could supersede the IMF's decision already taken
and imposed in this regard.
The cabinet kept postponing the decision and the government functionaries
kept asserting that it would be done with a 'human face.'
The NWFP government, however, moved fast on its downsizing plan and some
government staff was even laid off in anticipation.
The federal government announced a voluntary retirement scheme amidst
reports that cabinet had taken the downsizing decision which was not
announced. A surplus staff pool was to be created where the 'surplus' staff
would be placed until they find alternative jobs or are self-employed with
the help of a microcredit scheme that the World Bank would finance.
The World Bank also volunteered to bear the expenses of severance of
government employees. The long and the short of the current status is that
there is a state of confusion with government employees worried and more
involved in personal financial calculations rather than their actual jobs.
The above state of affairs is enough to leave the people distraught as a
government that promised employment and job creation might only be able to
deliver unemployment and despair in the foreseeable future. And, growing
formal sector unemployment has been the norm since the early nineties when
frenzied privatisation commenced in the country.
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970915
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Lessons from the East Asian experience
--------------------------------------------------------------------
Moonis Ahmar
THE "miracle" of East Asia is a significant phenomenon of the 20th century.
As the world is reaching the next millennium, one is eager to know how the
East Asian countries, which were deep in the shadow of under-development
and poor governance, managed to accomplish a better socio-economic status
in such a short span of time and why the countries of South Asia are still
unable to reach the minimum level of development.
In terms of per-capita income, gross domestic product (GDP), trade and
technology, most of the east Asian countries have accomplished miracles
despite some serious domestic and regional conflicts, whereas, the South
Asian countries, notwithstanding reforms introduced for the opening up of
economies since 1991, have not taken off in the real sense. The paradoxical
situation of the South Asian countries in the area of human development
needs to be understood while knowing what lessons could be learned from the
prosperous East Asia model.
Despite the rapid pace of industrialisation and technological advancement
in different parts of the world, South Asia is still not able to catch up
with the ongoing dynamics of economic change. If East Asia was economically
under-developed couple of decades ago, South Asia was at the same level.
Yet, over the last three decades, the gap in per-capita incomes and other
sources of human development has widened between the two regions.
According to the statistics available from different sources, East Asia's
per-capita GDP has increased to $ 11,000 in 1993 compared to a level of $
1,370 in South Asia. Therefore, the gap in their per-capita incomes has
widened from only $200 in 1960 to over $9,700 by 1993. In the area of
trade, the miracle of East Asia is obvious.
Singapore's imports (1994) were $ try to seriously examine the reasons for
the widening economic gap between South and East Asia and figure out
strategies whereby this gap could be reduced, if not eliminated.
An excellent comparison of East and South Asia has been made in the 1997
Human Development in South Asia Report (HDR) published by Dr Mahbub-ul-Haq.
The HDR has touched all key areas which are relevant in showing sharp
contrast between East and South Asia and has come up with seven
contradictions in the levels of human development in the two regions. These
are:
* Macro-economic stability in East Asia and large budget deficits in South
Asia.
* Relative price stability in East Asia and a projectionist mentality in
South Asia.
* Influence of large foreign equity investments in East Asia and a
dependence on foreign assistance and loans in South Asia. * Egalitarian
pattern of merit-based competition in East Asia and feudal structure of
power and patronage in South Asia.
* Open competition in East Asia and rent-seeking attitudes in South Asia.
* Investment in human capital and technology in East Asia and endemic
illiteracy and ignorance in South Asia.
* Relatively sound governance policy in South Asia and government
inefficiency and corruption in East Asia.
One could cite more contradictions between the levels of human development
in East and South Asia but the most significant contrast in the two regions
is about basic education. The degree of priority given by the governments
of East Asia for education is amazing. On the contrary, in South Asia,
education, particularly at the basic and primary level, has remained a
neglected area for our policy-makers. As a result, neither could the
quality of life be enhanced nor could a breakthrough in infrastructure be
achieved in South Asia since its decolonisation from the British Raj.
The HDR has brilliantly compared the educational contrast in East and South
Asia. For instance, the report says that in 1960, only 30 per cent of
Pakistani children were enrolled in primary schools, compared to 94 per
cent in South Korea. The adult literacy rate in 1970 was 88 per cent in
East Asia, compared to 32 per cent in South Asia. Moreover, East Asia
built up its human capital through major public and private investments in
education. The Republic of Korea, Thailand and Malaysia devote nearly 70
per cent of their education budget on basic education. In 1985, Singapore,
spent $ 834 on every primary school student, compared to $28 per cent
primary school student in India, and $21 in Pakistan. Another important
difference in the educational experience of East and South Asia lies in the
field of technical education. Secondary school technical enrolment is 9.1
per cent in China and 18.1 per cent in the Republic of Korea, compared to
1.6 per cent in Pakistan and 0.7 per cent in Bangladesh.
With these facts in mind one can understand why the contrast in the
educational system and priorities of East and South Asia have also widened
the gap in the areas of human development. Meagre resources allocated for
education and low priority given to primary and basic education in South
Asia as compared to East Asia is the single most important reason for a
sharp contrast between the two regions.
Five important reasons for sustainable educational growth in East Asia as
stated in the HDR are:
* Increased demand for a skilled labour force as a result of the rapid
growth of the manufacturing sector.
* The pressures of competition in an expanding and open global market.
* A relatively early demographic transition that resulted in a sharp
decline in the rate of growth of the school-age population.
* Fairly high budgetary commitments to education by the governments.
* Balance between public expenditure on basic and higher education.
It is not only in the field of education where East and South Asia are not
at par. It extends to all important areas of human development. For
instance, over the last three decades or so, East Asia's real GDP has grown
consistently at a rate almost three times that of South Asia's GDP.
Trade is now 62.6 per cent of GDP in East Asia (excluding China) compared
to 13.5 per cent in South Asia and intra-regional trade in ASEAN region was
around 57 per cent of total regional trade in 1992 compared to only 13 per
cent in the SAARC region. Another important area of contrast between East
and South Asia is domestic savings and investments. According to the HDR,
in 1960, domestic, saving was only 1 per cent of the GDP of South Korea and
minus 3 per cent in Singapore.
Twenty-five years further down the road, the saving rate had risen
dramatically to 31 per cent in South Korea, and 42 per cent in Singapore.
Gross domestic saving was 34 per cent of GDP in East Asia in 1993, compared
to only 21 per cent in South Asia. In Bangladesh, the domestic savings rate
is 8 per cent; in Nepal 11 per cent; and in Pakistan, 12 per cent. The
questions then arise: why are positive results not being witnessed in South
Asia despite the opening up of regional economies and market reforms? Why
is the level of human development so low in South Asia?
Why is corruption rampant in all the South Asian countries? reverting to
the East Asian experience, one basic step which was taken by the countries
of that region was the simultaneous economic and social reforms. If the
governments of East Asia were opening up their economies, measures to
improve the educational system and work ethics were also adopted. As a
result, economic reforms, good governance and excellent work ethics led to
economic miracles in East Asia.
In South Asia, it is not possible to expect miracles from economic reforms
unless the ills of society are also removed. The per-capita income, exports
and the overall quality of life of people cannot improve unless the moral
values and norms are established. If a society is submerged under
corruption, inefficiency, inhuman tendencies and other socio-economic ills
one cannot expect things to improve in the area of human development. As
compared to East Asia, South Asia lacks in following areas:
1. Good governance.
2. Basic infrastructure.
3. The effective and inexpensive legal system.
4. A quality oriented educational system.
5. Viable cooperation between the government and the business sector.
6. Low defence expenditures of their GDP.
7. Better work ethics.
8. Reduced level of corruption.
9. Clear headed and visionary leadership.
10. Secular principals.
11. Political will to handle conflicts.
12. The positive role of non-governmental organisations for human development.
13. Separation of state and church.
As we are entering the next millennium, we need to make sure that our
region is not further behind in providing basic necessities of life to
people, building a strong infrastructure and providing better governance.
it is true that East and South Asia are different in many ways but it is
worth if we try to learn some of the lessons from the East Asian miracle
and find out where we are at fault and how could we achieve better socio-
economic progress in the years to come.
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970918
--------------------------------------------------------------------
100 per cent depreciation on import of machinery
--------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, Sept 17: The new industrial policy now being finalized will
allow 100% depreciation allowance on the import of machinery to encourage
the setting up of high tech industry in Pakistan.
Informed sources told Dawn that the Minister for Commerce and Investment,
Ishaq Dar, told the 22-member delegation of Japan Chamber of Commerce and
Industry, based in Singapore, here on Wednesday that a 100% depreciation
will be allowed on the import of machinery to attract foreign investment in
the country.
Tax experts explain that Pakistan would be following the latest trends in
grant of depreciation allowance in one single year. It has however, not
indicated giving options to investors to avail this allowance in one-go or
in a couple of years.
He also said that special incentives for export-oriented industry will also
be offered. Dar pointed out that Pakistan enjoyed special significance to
have Middle East and Central Asia close to it and that the future investors
could greatly benefit by establishing their industries here and exporting
goods to those places.
He told the delegation of the Japanese businessmen based in Singapore that
a new investment policy has also been finalized which assured full
protection of foreign investment in Pakistan.
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970918
--------------------------------------------------------------------
Intel opens office in Pakistan
--------------------------------------------------------------------
Dilawar Hussain
KARACHI, Sept 17: Intel Corporation of US, a leading manufacturer of
microprocessor, announced the opening of its Pakistan office on Wednesday.
At a Press briefing on Wednesday, the company officials, however, confirmed
that Intel does not propose to make capital investment in setting up a
manufacturing facility in Pakistan, and the Pakistani subsidiary would be a
marketing and sales office only.
"The company's objectives in opening Intel Corporation Pakistan is to
ensure that the latest information technology (IT) is available thus
enabling people to make informed computer investments," Sean Maloney, Vice
President and General Manager of Intel Asia Pacific, said in a statement
released from Hong Kong.
Speaking at Wednesday's Press conference, Atul Vijaykar, Director of South
Asia, observed that many studies had indicated that the supply of personal
computers (PCs) would exceed those of TVs, by the end of 1998.
He said he visualized more PCs entering businesses, schools, universities
and homes. Besides 85% market segment share in microprocessor, Intel
Corporation is also a leading supplier of networking, communication
products and motherboards, he claimed.
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970919
--------------------------------------------------------------------
MIGA insures investment in 3 projects
--------------------------------------------------------------------
Muhammad Ilyas
ISLAMABAD, Sept 18: Multinational Investment Guarantee Agency (MIGA), a
member of the World Bank group, has insured investment of three United
States-based companies in as many private power projects in Pakistan to the
tune of $35 million, according to MIGA's annual report for 1997.
The projects include: (1) A 115-megawatt power plant near Farouqabad (2) A
151-megawatt gas-fired power plant near Kabirwala in Punjab and (3) A
126-megawatt power plant in Sindh.
These are among the 70 guarantees given by MIGA for development projects in
25 countries during fiscal 1997. The projects, according to the report,
would facilitate an estimated $4.7 billion in total foreign direct
investment (FDI), seven times the amount of coverage issued. They also
would generate an estimated 4,000 local jobs involving substantial training
programmes for employees.
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970920
--------------------------------------------------------------------
Privatization of Lahore, Islamabad Motorway
--------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, Sept 19: The Privatization Commission will invite
pre-qualification of the prospective bidders in October to privatize 360km
long Lahore-Islamabad motorway project next November.
With the privatization process going in full swing, Nawaz Sharif
government, according to informed sources, has now decided to privatize the
prestigious 360km Lahore-Islamabad Motorway project which has just been
completed at a cost of Rs 35 billion ($1.5 billion).
Expression of Interest from the interested multinational companies are
expected to be sought within this month or in early October. Daewoo of
South Korea which had originally won the contract and built the
trans-Pakistan Motorway project is said to be one of the serious contenders
to purchase it. Some of the Japanese, Malaysian and Hongkong companies are
also in the run.
The Motorway which is likely to be opened for traffic before December this
year, will charge Rs. 150 from the private car and Rs 250 from the public
transport vehicle for each single way trip.
There has been a lot of concern expressed by the private and public
transport commuters over what they termed "huge amount of toll tax" to be
paid by them and called upon the government to revise this decision.
Nevertheless, the government continued to maintain that it would be very
difficult to recover this big amount of Rs 35 billion without recovering
considerable toll tax and that this would have to be borne by the commuters.
Currently, the government was charging Rs 5 to Rs 10 for each private and
public transport vehicle respectively, for old Rawalpindi Islamabad Grand
Truck road.
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970920
--------------------------------------------------------------------
Index recovers 7.36 points, despite PTCL weakness
--------------------------------------------------------------------
Staff Reporter
KARACHI, Sept 19: Blue chips on the stock market came in for renewed
support on Friday and generally tended further higher amid a briskly traded
session. Index recovered another 7.36 points at 1,851.72 despite the
weakness of PTCL.
Apart from active short-covering at the lower levels by some of the leading
foreign funds, the market also derived a strength from news of higher
corporate earnings and good dividend announcements from some of the local
companies, notably Cherat Paper, which came out with a final dividend of 50
per cent.
News from some of the MNCs, notably Glaxo-Wellcome, Lever Brothers and
Reckitt & Colman and some others, in regard to their second quarter
earnings were not that encouraging which seemed to cause slashing in their
prices over the week.
Although the index finished with a clipped gain, as earlier it was up 15
points, but indicated that after hitting the lows of the cycle around 1,825
it is now heading to its resistance level of 1,950.
The market capitalization showed a fresh increase of Rs 2.058 billion at Rs
561.122 billion, as compared to Rs 559.063 billion a day earlier,
reflecting the weakness of PTCL.
Buying support, however, remained largely selective as most of the leading
investors were not inclined to move out of the safe havens owing to typical
background news, dealers said.
"The market absorbed the shock of killing of Iranian airforce cadets in a
terrorist attack in Islamabad on Wednesday morning but some of the local
investors were still shaky about its negative impact on Pakistan-Iran
relations," they added.
Strong foreign support though was confined to some leading MNCs, notably
Hub-Power, ICI Pakistan and some others, it did not allow bargain-hunters
to tilt the balance in their favour at the weekend session, analysts said.
It was in this background that a handsome final dividend at the rate of 50
per cent by Cherat Paper, which made total for the year ended June 30,
1997, to 80 per cent, was well received in the rings as was reflected by a
big rise in its share value and large covering in the group's other shares.
"Irrespective of the negative background news on the political and law and
order fronts, the market is expected to maintain its current pattern of
trading thanks to strong foreign support," analysts said.
Bulk of the foreign buying was directed against the energy sector where
leading shares, notably PSO, Japan Power, Sui Northern, Sui Southern,
Pakistan Refinery and some others, finished with fresh sharp gains.
Other MNCs which fell were led by Lever Brothers, falling by Rs 23 on news
of lower earnings, Dawood Hercules, Reckitt & Colman and Sigma Leasing,
which fell by Rs 3 to Rs 12. There were no apparent reason behind the sharp
decline in Sigma, which fell from its peak level of Rs 30 to Rs 18 on
turnover of 3,000 shares.
Adamjee Insurance came in for active support and rose by Rs 5.50 and so
were KESC and Engro Chemicals, rising by Rs 1.30 to Rs 4.75.
Volume was on the higher side despite a short Friday session, totalling 50
million shares as compared to 71 million shares a day earlier. Out of the
total 196 actives, 75 shares rose, 63 fell with 58 holding on to the last
levels.
Hub-Power again topped the list of most actives, up 45 paisa on 16.344
million shares, followed by PTCL, lower 20 paisa on 10.465 million, ICI
Pakistan, up 25 paisa on 8.237 million, FFC-Jordan Fertilizer, unchanged on
4.761 million, KESC, up Rs 1.30 on 1.956 million shares, and Bankers
Equity, lower 20 paisa on 1.9931 million shares.
Other actively traded shares were led by Sui Northern, up Rs 2 on 1.321
million shares, followed by Sui Southern, higher Rs 1.50 on 1.140 million
shares, Japan Power, steady 15 paisa on 0.800 million shares, PICIC, lower
15 paisa on 0.374 million shares, and Dewan Salman, unchanged on 0.300
million shares.
DEFAULTING COMPANIES: Shares of nine companies came in for trading but in
the absence of demand from any quarter all suffered fall rating from five
to 10 paisa, the largest being in Crescent Spinning, which fell by 25 paisa
at Rs 6.25 but without any deal. There was no deal in other shares too.
-------------------------------------------------------------------
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970914
--------------------------------------------------------------------
Spin doctors
--------------------------------------------------------------------
Ardeshir Cowasjee
A SPIN doctor, in the language of the lexicon: "A senior political
spokesperson employed to promote a favourable interpretation of events" to
the press and to the people. He is a politician's flak. Not an easy job, as
he has to be endowed with a highly retentive memory and the capacity to lie
consistently and unashamedly whilst keeping a straight face.
In the foreground during the past decade have been our two spinners,
Mushahid Hussain and Hussain Haqqani. In the beginning, Mushahid was
ostensibly batting for the opponents as the editor of The Muslim whilst
Hussain was spinning in the Zia-Nawaz team.
Hussain Haqqani was born in Karachi on October 1, 1956. He did his Masters
in international relations from Karachi University, obtaining a first-class
first in 1980. He was the elected president of the students' union and one
of his contemporaries at KU was Altaf Bhai now of London town. From 1980 to
1984 he was based in Hong Kong as a correspondent for the Far Eastern
Economic Review and Arabia - The Islamic World Review, and later returned
to Pakistan doing the same job.
In 1988, he became Punjab Chief Minister Nawaz Sharif's spin doctor, with
the rank of a provincial minister, a flag-flyer, spinning against Benazir
and her government. In 1989 he was sent to Karachi to negotiate with Altaf
Bhai on behalf of Nawaz Sharif who was getting ready to move to Islamabad.
When Jatoi became caretaker PM, Hussain Haqqani was appointed his press
adviser and when Nawaz Sharif took over, he went to him in the same
position. In 1992, when Nawaz Sharif decided to get rid of him (for
whatever reasons) rather than sacking him, he prudently appointed him our
high commissioner to Sri Lanka, from which post he resigned when Nawaz
Sharif's government was dismissed.
Benazir Bhutto, on taking over in 1993, realized that Hussain's services
might help her on her way and took him on as her press adviser. In July
1994 she made him information secretary, in which post he remained until
June 1995, when Benazir Bhutto decided that it was time for him to go.
Prudence again was exercised, and he was 'expelled' to Karachi to head the
HBFC. Again, when Benazir Bhutto was sacked for the second time, he resigned.
Shrewd and clever as he is, Haqqani knows what the three young self-serving
leaders (now monopolizing the political scene in this unfortunate country)
do not know. He has taught himself much, continues to teach himself, has
read more than the three have, continues to read, and is amusing company.
Is this genuine? I asked him the last time he came calling, handing him a
photocopy of a page with a remark scrawled upon it by Benazir Bhutto. In
February 1995, Haqqani managed to get CNN Delhi correspondent Ashish Ray to
agree to interview his prime minister and show her on the screen prior to
her US visit, and had accordingly addressed a note on the subject to her.
Benazir Bhutto's reaction: "The last time H.H. asked me to give Ashish Ray
an interview it was a disaster. He was an Indian and kept asking /
provoking and gave a v. nasty report. Ask for all questions on record and
arrange to switch off the electricity plug if they ask any beyond the
approved questions - or any other remedial method. I don't want to repeat
past experience so the interview should be sorted out properly."
Hussain Haqqani looked at it, and put on his spin doctor smile which
indicated the affirmative. With sadness, he said that neither Nawaz Sharif
nor Benazir Bhutto are ever receptive to advice.
Was it worth doing what you did, all the bowing and scraping, I asked him,
showing him a copy of another letter, this time from the PM's principal
secretary, Ahmed Sadik, to federal secretary Haqqani: "It has been observed
that you were not in office between 09.00 a.m. and 10.00 a.m. today when
the Prime Minister had wanted to talk to you. The office hours being 09.00
a.m. to 05.00 p.m. you may like to explain the reasons for your absence
from office for a whole hour and that too without having indicated your
whereabouts. You are also advised to ensure your availability in office in
future and avoid recurrence of such a situation."
There are times in one's life, he replied, when one has to suffer fools
gladly, as you must have done on many an occasion.
I then produced a copy of a note dated January 26, 1994, from the
information ministry's file advising that a sum of Rs 5 million had been
"paid to the Frontier Post as per instructions given by Mr Asif Ali Zardari
in the presence of PIO and Principal Secretary to the Prime Minister." This
amount came from the Special Service Expenses Account. From the same
account, nine payments between February and December 1994 of varying
amounts totalling Rs 4.9 million were made to Chaudhry Ghulam Hussain of
the publications Facts and Siasi Log of Lahore.
How does one justify this disbursement of Rs 10 million of public funds to
publications for their support for the party in power? I asked Haqqani. It
is just a matter of following instructions, he told me. Such payments have
been made since the days of Ayub Khan and Altaf Gauhar. Obviously, in
Haqqani's book many wrongs make a right. But he rightly countered, if
people do not object to the way their money is squandered why should the
callous all-powerful bother?
Benazir Bhutto's information minister Khalid Ahmad Kharal was paid from the
same account a total of Rs 2.2 million in eleven payments between April
1994 and September 1995. Then from October 1995 to October 1996, he was
paid a monthly sum of Rs 50,000. In between, in August 1996, he was given
Rs 78,000 (USD 2,000) for "special external publicity purposes," making a
grand total of some Rs 3 million. What did he do with it? He has not
accounted for it.
The same goes for Zia Khokhar of the PM's secretariat who was handed out
sums totalling Rs 780,000.
As for the ministry's Special Service Expenses (SSE) and Special Publicity
Fund (SPF), these are disbursed according to the secret service funds rules
under which the interior ministry operates, in the supreme national
interest, to pay off spies, spooks, informers, toadies, etc. The givers
give and the receivers receive without having to render any explanation. In
the case of this redundant ministry of information, a receipt of sorts is
given.
For instance, Kharal was required, as "the undersigned", to put his
signature to: "This is to certify that Rs. (amount) from S.S.E. Account
drawn on (date) were spent in the public interest under directions of the
undersigned."
Millions of rupees have been spent over the years by this redundant
ministry from these special secret SSE and SPF accounts. Random examples:
August 10, 1992, cheque no. 280657 for Rs 500,000 issued to "PIO PID loan
for Independence Day celebrations" (Nawaz); November 14, 1992, for "Special
Publicity Programme of the Prime Minister," cheque no. 280659 for Rs
200,000 (Nawaz); May 31, 1993, Abdul Khaliq of NNI was paid Rs 200,000 by
cheque no. 280665 (Nawaz); June 17, 1993, cheque no. 280666 for Rs 270,000
was "paid to PIO PID" (Nawaz); on September 23, 1993, cheque no. 280671 in
the amount of Rs 768,750 was issued to Tayab Automobiles, Karachi (Moeen
Qureshi); and on August 1, 1994, Honda Atlas, Lahore, received cheque no.
543102 for Rs 664,700 (Benazir). Between November 1994 and March 1995,
Worldwide Media Communications was paid Rs 1.35 million in connection with
Benazir Bhutto's visit to the US. On June 29, 1996, a cash payment of Rs
600,000 was made to an unnamed person for "entertainment to journalists."
(Benazir). What sort of entertainment? we ask.
All that each secretary of the information ministry is required to do is to
list all such payments and certify at the end of his term: "I declare that
the interests of the public service required that the above payments should
be made out of Special Grant, and that they were properly made."
Apparently, the secretaries feel that the longevity of the party in power
is synonymous with the interests of the state.
Now, clever Mushahid Hussain is flying the flag and moves around with a
posse of twelve. He, too, no doubt in "the interests of the public
service", will spend our money to keep Nawaz Sharif and his Chaudhrys
healthy, wealthy, and wise. Such ministries in the West went out with
Hitler's Third Reich. It is time we eliminated ours.
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970917
--------------------------------------------------------------------
Non-graduates, etc.
--------------------------------------------------------------------
Hafizur Rahman
LIKE the previous government, the present regime too has committed itself
to providing jobs, or at least some means of subsistence, to the mass of
the educated unemployed. It is a thorny issue, a veritable political and
financial headache, and the ministers concerned must be having sleepless
nights just thinking about it.
Some time ago a large group from this class staged a demonstration on the
fashionable Mall in Lahore. To make the demo really impressive they
arranged dozens of handcarts, used by itinerant shopkeepers, and displayed
banners and placards in Urdu and Punjabi stating that a degree did not
offer better prospects to the educated than the sale of petty goods on
handcarts.
My immediate reaction was: well, so what! What is the harm if a B.A., or
even an M.A., wheels a handcart selling cucumbers or pins and needles? Is
it necessary to be illiterate or primary-pass to do that? Why should
rehris, which are quite a profitable means of earning a decent livelihood,
be monopolised by the unlettered?
If the illiterate or the primary pass can break the monopoly of the
educated and become industrial tycoons, what is there to stop the
degree-holders from selling socks and bootlaces on the footpath? Or does
this mean that those without formal education are more enterprising and
have greater initiative?
At least three persons who were not more than matriculate have been either
chief minister or governor of West Pakistan and Punjab and ruled the
province with distinction from No.7 Club Road or the sprawling Governor's
House in Lahore. If these matriculates could poach on what should certainly
be the preserve of the degreewallahs, what prevents the latter from taking
to work involving manual labour?
Tit for tat. If nothing else it will teach the uneducated to remain within
their social limits and not aim at becoming legislators and ministers as
they nowadays tend to do. When Mr Junejo was prime minister, he appointed a
"slightly educated" gentleman from Sindh as minister of state for health.
It is a different matter that the man resigned after a few months saying
that he would rather be chairman of the district council than a minister,
although the rumour was that he went away because he couldn't understand
what was being said around him in English.
A matriculate friend from Bannu proved to be more confident of himself. In
the days of One Unit he was an MPA and was told to come over to the
Governor's House to be sworn-in as deputy minister. I asked him what was to
be his portfolio. He said he was to get Finance but was thoroughly annoyed
at the prospect. "What do I know of Finance?" he queried, "What
contribution can I make?"
I asked him what his own choice would have been in order to make a
contribution. "Communications & Works of course," he replied confidently.
"You know I have been a stores clerk for eight years in the Frontier PWD."
All those students - prospective graduates and post-graduates - who paraded
in protest on the Mall that day, will, if you want them to, give you a most
convincing lecture on the dignity of manual labour, quoting from the Holy
Prophet's daily life to strengthen their arguments. But in actual life they
find manual labour demeaning. They will prefer to be paid Rs 2,000 p.m. as
a white collar worker than take home more than a 100 rupees every day by
selling chaat and aaloo chhole, to which they contemptuously referred
during the demo with the slogan "Degree le kar chhole becho."
The great thing about an educated young man going around with rehri is that
he needs no sifarish or an uncle in a high place to be able to do that. The
financial outlay too is not much. All that you need is the will to work. On
the other hand, a non-graduate has to beg and cajole to be placed in a
berth suitable to his "family background" but for which he is not properly
educated.
In the fifties, Sufi Abdul Hamid was minister for food in Mian Mumtaz
Daultana's Punjab cabinet. He was subjected to great pressure to appoint a
matriculate as an assistant food controller for which post the basic
qualification was B.A. Sufi Sahib was a gentleman of integrity but could
not resist the pressure exerted on him from many sides.
So he wrote thus on the young man's application: "Mr X is known to me from
his childhood. He is very intelligent and belongs to a respectable family
with a Muslim League background. Because of adverse conditions he could not
complete his college education. Had he continued with his studies, I am
sure he would have been a B.A. by now. Condition of degree waived. Appointed."
I salute the retired deputy secretary of the federal government who, to
supplement his meagre pension, opened a nihari shop in Islamabad three
years ago. I salute him because he had the guts and the frankness to admit
that he could only do that and nothing fancy. Otherwise too, what was the
harm in selling nihari?
Other retired officers sell munitions and tractors and call themselves
manufacturers' reps, when they are only glorified salesmen. At least this
deputy secretary believed in the dignity of labour when he chose to call
himself a petty shopkeeper rather than a businessman.
One of our national traits is to make believe that none of our ancestors
ever did a stick of work and that we have always lived off the fat of the
land - "Our squares out in Khairpur or Bahawalnager". Also that our
forefathers came from Arabia or Bukhara and were well-known figures in
history. One of my own cousins used to claim that he was descended from
Data Ganj Bakhsh, who, incidentally never married and died a celibate.
Apparently no Pakistani worth anything is a true son of the soil, all
having been imported, like the old clothes in Landa Bazaar. I cannot forget
the look of embarrassment on the face of an eminent person (whose own
forebears were supposed to have come from Samarqand) when, on his asking, I
told him that I belonged to a lohaar family of Amritsar.
He didn't know where to look, and whether to admire me or pity my lineage.
It was as if I had confessed to having AIDS. What I should have told him
euphemistically was that we were engineers who had come down with the
Moghuls from Central Asia. That would at least have prevented the trauma in
his mind about me.
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970920
--------------------------------------------------------------------
The mad, the bad and the sad
--------------------------------------------------------------------
Irfan Husain
BARELY six months after the Nawaz Sharif government was sworn in, rumours
of its imminent demise are sweeping the country. Which may not be the same
thing, but is ultimately what counts.
So what's going on? The Islamabad bureau chief of this newspaper recently
devoted an entire article to the speculation doing the rounds in the
capital. Suddenly, there is an air of expectancy, fuelled by the headlines
concerning the entirely unnecessary confrontation this government sparked
off with the judiciary. As always, much of this talk is just wishful
thinking but as we know from repeated experience, this kind of speculation
becomes a self-fulfilling prophecy as it takes on a life of its own. But
whatever the ultimate outcome of the battle over the number of judges in
the Supreme Court, it is impossible to fathom the reasons behind the
government's decision to take on the judiciary over an issue on which it
has no public support whatsoever. Even when the government climbed down, it
did so with bad grace, leaving the threat of using its parliamentary
majority lingering in the air like a bad smell. As the old truism goes,
"Whom the gods wish to destroy, they first make [them] mad."
But nobody has so far been able to explain how the government can be turfed
out in the absence of the powers the president once wielded (with great
gusto, let it be said) under the Eighth Amendment. Any move to dismiss a
lawfully elected government will have to be necessarily unconstitutional.
Who in his right mind would support such a move? Far too many people, alas.
All those out in the cold would prefer to see a military junta in power
rather than their political rivals. Even avowed democrats like Benazir
Bhutto are advocating the induction of the army and intelligence services
into a "national government" which would include politicians from all the
major political parties. Such a body would presumably have her on board as
well. This blatant ploy to gain an entry into the power structure through
the back door would have been laughable had it not come from somebody who
has struggled so hard for the restoration of democracy during the Zia era.
Through this manoeuvre, she has devalued her personal contribution and
standing. Power must be a very addictive drug for her to go to such extreme
lengths in order to get a toe in the doorway of Islamabad's corridors of
power.
Out of all the sorry sights on this planet, there are few sadder than a
politician out of power, plotting a comeback. He or she will clutch at any
straw, desperate for portents of an imminent change. In Benazir Bhutto's
case, there is an added poignancy because she appears to believe that she
has a God-given right to rule the country, and there is some huge
conspiracy afoot to keep her from her inheritance. She is so convinced of
her inalienable right to rule us that she cannot believe that she, her
government, or her spouse did anything wrong. And if you cannot see your
own faults, you obviously cannot correct them, which is why BB's government
was thrown out last November for basically the same reasons as in 1990.
But if BB is incapable of learning from her mistakes, so apparently is
Nawaz Sharif, if his stand-off with the Chief Justice of the Supreme Court
is any guide. In his first stint as prime minister, he took on the
president and the army unnecessarily and paid the price. Again, for no
apparent reason, he has entered a no-win confrontation with the higher
judiciary that threatens to weaken his hold on power, perhaps fatally. He
may have some reservations about a couple of judges recommended by the
Chief Justice for elevation to the Supreme Court, but he should have
realised the limits of power before sitting down to a no-limit game of poker.
So where does one turn for some degree of sagacity and political wisdom?
Who in our benighted land will rescue us from the motley crew that takes
turns at squeezing the nation's jugular? These are the very questions and
appeals for help that are fuelling today's fevered search for a messiah.
But we have been there, done that, and we know there is no saviour who will
appear to redeem us, no magic wand to clear the mess. It is true that none
of the political parties or leaders show any sign of possessing the
qualities needed to steer Pakistan out of the multiple-crises that are upon
us. But this leadership vacuum does not mean that the army or some
combination of technocrats has any of the answers either. Indeed, all the
players currently available are part of the problem, so how can they supply
the solution?
Stumbling from one crisis to another for fifty years, destroying virtually
all our institutions in the process, we should face the possibility that
perhaps we do not deserve to make it as a nation-state. Despite the
capability, talent and adaptability so evident in many of our people, it is
a fact that collectively, we have been unable to achieve a consensus on the
most fundamental issues. It is also a fact that by and large, those at the
helm of affairs have let us down time and again. But we have mostly
ourselves to blame for tolerating the crooks and charlatans who have ruled
our destiny for most of our fifty years of independent existence.
In political history just as in natural history, the hard Darwinian law of
the survival of the fittest applies. Many states have appeared and
disappeared from the world's map over the centuries. Some fell victims to
natural disasters, war and invasion, while others simply vanished because
of the greed and ineptitude of their rulers. So far, the most ardent
optimist has been unable to convince me that somehow, things will improve
and that we will attain that most elusive of holy grails, good governance.
Judging from our sorry track, we will continue downwards on our suicidal
spiral. I would be happy to be proved wrong, but going by our leaders'
words and deeds, as well as by virtually every social and economic
indicator, I find little room for complacency.
Going as we are through the motions of celebrating our fiftieth
anniversary, we have to ask ourselves if our children and their children
will observe an even more auspicious occasion in 2047.
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970918
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Vulgar display of prosperity
--------------------------------------------------------------------
Sultan Ahmed
COMPARATIVE conspicuous consumption or display of prosperity in major
cities of South Asia figures prominently in discussions on excessive wealth
and extremes of poverty in the region. Pakistan, officials and
non-officials tend to claim, is relatively richer than India and has made
greater economic progress during the last 50 years. They point to the
affluence visible in our major cities, beginning with Karachi and Lahore,
as clear proof. They talk of the visible squalor in Mumbai (Bombay) and
argue that people in Karachi are far better.
Statistically they talk of our per capita income which is higher than
India's by about one-fourth. But the fact is this gap is narrowing fast
because of the higher economic growth of India in recent years and our poor
growth rate in the 1990s, except for 1991-92 which left us with a per
capita income of 470 dollars last year, which was 20 dollars below the
preceding year's 490 dollars, and lower than 1994-95's 480 dollars.
India is improving its per capita income steadily by combining over 6 per
cent economic growth for the last four years with a low population growth
of 2.14 per cent, while Pakistan's 3 per cent annual population growth is
hardly denoted by our population planning efforts. So if India's population
growth keeps on declining, following the examples set by Kerala with its
growth rate of 1.34 per cent and Tamil Nadu's 1.43 per cent, and we combine
our low economic growth rate with a high population growth rate and
constant devaluation of the rupee, the real per capita income gap between
the two countries will narrow fast and vanish. Even now, while our per
capita income, on the basis of the 1980-81 prices, last year was Rs 4,263
it was Rs 18,320 on the basis of the market prices - a four-fold rise
reflecting the extent of inflation.
Clearly we determine the extent of our visible prosperity on the basis of
the number of gleaming new limousines in our city streets, the large
bungalows which are lavishly furnished, often with imported items, the
large parties including the mega wedding parties until the recent ban,
crowds in costly restaurants particularly in the foreign outlets, the
demand for high-cost furniture and large presence of buyers in expensive
shops, particularly those selling foreign luxury goods. Added to that is
the number of families going on holidays abroad and the 8.5 billion dollars
deposits of Pakistanis in our banks, and some of the seemingly poor with
large number of shares in big companies.
In brief, Pakistan is a poor state but with too many ultra-rich persons.
And while the state's revenues are small and its budget deficit is very
large as also its ballooning national debt, the very rich are able to buy
almost anything they want, beginning with large properties. Personally if I
did not know the source of abundant wealth of two persons out of ten I know
in the past, now I do not know of the source of wealth of more than five
out of ten persons I meet.
Where then is the source of all this wealth and ostentatious spending? Let
us begin with the Rs 126 billion defaulted bank loans which have been
accumulating over the decades. While the borrowers used the money to
multiply their wealth and deposited a large part of that abroad which they
got as kickback on the expensive machinery they had imported for their
mills and as they built their factories. Even now it has been said that
while the borrowers have agreed to repay Rs 26 billion out of that, the
banks will have to forgo Rs 10 billion.
There has been speculation about the size of the black or tax-evaded
economy. Although some estimate that as high as 100 per cent of the regular
economy, 50 per cent would be a more appropriate figure, as there is no tax
on the agricultural output which forms 25 per cent of the GDP. And the
multinational companies and the salaried class pay their taxes.
Evasion of taxes on imports, including the smuggled goods has been
estimated as between Rs 50 and 100 billion. But now the import duties have
been reduced from an average of 65 per cent to 45 per cent. Still the
difference between the cost of smuggling had actual import duties and other
levies is so large. Smuggling is flourishing, particularly in tea,
cigarettes and toilet goods.
It has been said that if everyone paid his income tax according to the law
the revenues could rise by Rs 3 to Rs 5 for every rupee collected as tax
now. There is heavy evasion of tax in the service sector, particularly
trade and in high paying professions like doctors, and lawyers. How far the
new measures succeed in not only making everyone pay income tax but also
full tax remains to be seen. There is the large income from the massive
corruption. Dr Mahbubul Haq had estimated the controllers of the economy
were pocketing Rs 20 billion a year and then quickly doubled that figure 15
years ago. That amount is much larger now as too many persons who want
anything done by an official, and more so by provincial officials, have to
pay bribe. The extent of bribe in the police service and FIA is ghastly.
Visits to customs and income tax officers homes and the extent of property
they own in places like Clifton and Defence Housing Authority would show
the extent of corruption in the taxation services.
Among the government officers those who do not take to outright corruption
have several legitimatised means of becoming rich. They can get allotment
of lands in the various cities of Pakistan and rural areas even if they are
not posted there. And military officers can get large plots of lands in any
of the almost 80 defence societies and colonies in Pakistan. Compared to
the 2,000 square yard plots they got at very low prices in the Defence
Housing Society, which later became the Housing Authority, even a general
in the very limited Defence Colony in New Delhi could get a maximum of only
400 square yards. All that means, money in plenty for our officials.
Senior government officers are able to command a number of cars which could
be seen going to schools, markets and picnic spots. In the hill stations in
the north of the country one notices scores of official cars even when the
officers are not there.
Even a senior vice-president of a public sector bank or DFI commands upto
five cars at home. Multinational companies are equally generous with their
senior staff and those large new cars, complete with uniformed drivers and
security personnel are very visible on the city streets.
The government has also been providing tax-free-limousines to the top
officials at the Centre and in the provinces and military chiefs for 20
years now. The acting chiefs also get such large tax-exemptions and they
get more than one or two cars depending on the number of times they held
such offices. So if Benazir Bhutto got two such limousines with a tax
exemption of Rs 15.6 million, even Chaudhry Altaf Hussain got two Mercedes
3000 CC during two brief stints of office as Governor of Punjab close to
each other. And following Benazir's bonanza for chief ministers last year
Balochistan's young Zulfikar Magsi got the record tax exemption of Rs 14.7
million for his sports car Austan Martain 1996. Most of the 23 limousines
provided in this manner earlier and 48 later got sold off quick and the tax
bonanza pocketed by the leaders promptly.
In India top officials can get a foreign car but have to pay full taxes. So
they get small cars. But in Pakistan such cars were secured tax-free seldom
for personal use and more often for quick sales and large profits.
In the private sector an average of 20 cars and equal number of motor
cycles get snatched from Karachi every day. There are other crimes,
including kidnapping and dacoties. A large number of persons share in the
loot as big time crimes become a kind of corporate transaction.
Then there is the large income from drug trade and gun-running on a large
scale. The UN Drug Report for 1997 estimates world drug trade at 400
billion dollars or 8 per cent of the total world trade. How much is
Pakistan's share? Experts tell me a 10 per cent share is an under-estimate
as Pakistan is said to be second in drug exports after Colombia. Even a ten
per cent share means Rs 400 billion, far larger than our total tax revenues.
Money easily made is easily spent. As they say counterfeit money circulates
faster than the genuine. So black money too circulates fast and is visible
everywhere.
There are feudal lords who make their money in the rural areas and spend in
the cities, and have a fleet of Pajeros and other cars. They have defaulted
on loan repayments to the Agricultural Development Bank to the extent of Rs
24 billion. They even sell the tractors provided to them on an instalment
payment basis and spend the money. Following the sharp rise in wheat
support prices the farmers will make Rs 36 billion more, says finance
minister Sartaj Aziz. Normally they should be reinvesting that money to
increase their output. They do not. Instead the government is to give Rs 30
billion more as loans this year.
Families of overseas Pakistanis too indulge in conspicuous spending of
their new wealth. They save very little, except while buying property. They
want to make a show of their sudden success abroad.
As a result the savings rate in Pakistan is not only low but has also been
falling. It came down to 11.35 per cent last year from 15.61 per cent in
1993-94. Compared to that, India's domestic savings reached 25.6 per cent
of the GDP in 1995-96.
Then there are the Pakistanis with dollar deposits of 8.5 billion dollars
who feel free to spend their unearned incomes without touching the capital
and stay clear of the tax net and otherwise possible questions from tax-men.
All these explain the evident prosperity on our roads, in posh housing
societies and in the rich shopping areas. When the incomes are illegal or
illegitimate the temptation to spend is strong and to save small. Too much
savings can expose such persons.
So while some money is kept out, some is saved as foreign exchange deposits
at home, and the rest is spent, including on acquiring properties in other
names. The result is the visible roaring prosperity which gives a spur to
corruption among the powerful and to crimes by some others.
===================================================================
970915
--------------------------------------------------------------------
National Games report sets good precedent
--------------------------------------------------------------------
A. Majid Khan
For the first time in the fifty years history of the National Games the
Organisation Committee of the XXXVI National Games, made public on Sept 4
its report, along with the edited accounts by a reputed chartered company
of the country. Thus a process of accountability was set in motion since
the Games began in 1948.
The 26th National Games overall reports also showed ample courage by very
clearly pointing out the areas where lapses had occurred, particularly
during the inauguration ceremony on June 8 and accepted its responsibility
for the shortcomings. The reports, however, had said that the National
Games were technically well organised and were a success and there had been
no financial irregularity either.
Another bold and just move made on this occasion was that the
discrimination between the players and officials was brought to an end.
Moreover an added incentive to those excelling in different disciplines was
the award for 28 best performers and record breakers.
The biennial National Games, held by rotation, would now be staged in the
21st Century (2204) in Karachi after being staged in Peshawar, Lahore and
Quetta, provided the POA may not adopt a new formula for allotting the
National Games.
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970916
--------------------------------------------------------------------
Wasim Akram to lead sixes team to Hong Kong
--------------------------------------------------------------------
Sports Reporter
LAHORE, Sept 15: Captain Wasim Akram has been named to lead a seven-member
Pakistan cricket team in the Hong Kong Sixes International Tournament to be
held on September 27 and 28.
National selection committee, headed by former Test paceman Salim Altaf,
has picked the players for the competition, which is participated by top
teams of the world consisting of exciting stroke-players. The committee has
a former Test star Zaheer Abbas and a former Test opener Shafiq Ahmad
"Papa" as its members.
While picking the Pakistani players, selectors have kept in mind all the
experienced and talented players, who have been staking their claim for
inclusion in the Pakistan cricket team.
The team consists of the following:
Wasim Akram, Zahoor Elahi, Sajid Ali, Aamir Sohail, Asif Mujtaba, Basit
Ali, Naeem Ashraf.
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970917
--------------------------------------------------------------------
PCB not to take any action against Inzamam
--------------------------------------------------------------------
Sports Correspondent
LAHORE, Sept. 16: Pakistan Cricket Board (PCB) will not take any
disciplinary action against the middle-order batsman of the Pakistan
cricket team Inzamam-ul-Haq for breaching ICC code of conduct on Sunday, in
the second match of the five-match series against India in the Sahara Cup
being played at Toronto (Canada).
Announcing this the PCB secretary Waqar Ahmad said that as the Referee
Jackie Hendricks had suspended Inzamam-ul-Haq for the next two matches of
the series, the board could not punish the forceful batsman twice on the
same charges.
The bad incident occurred when India chasing a meagre target of 116 had
collected 45 for one. Suddenly, Inzamam was seen to have jumped the
advertising hoardings and entered the stands with a bat to hit one of the
spectators. However, the blow did not hit the man as Inzimam was restrained
by a group of people in the crowd and later by security men.
Justifying Hendricks's decision, Waqar Ahmad said Clause 2 of the ICC code
of conduct would have applied on a player, even if he left the ground
without having the umpire's permission, but here, Inzamam, he said, had
committed a blunder as he tried to hit a spectator with a bat.
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970920
--------------------------------------------------------------------
Pakistan lose 3rd match, series against India
--------------------------------------------------------------------
Qamar Ahmed
TORONTO, Sept 19: With another depressing display with the bat, Pakistan
squandered the opportunity of retaining the Sahara Cup which they won in
its inaugural year in 1996. Instead they succumbed once again and lost the
third match by 34 runs against India to lose the series before it is over.
Thus their third failure in a row in this series was unquestionably
self-inflicted.
Having restricted India to only 182 in 50 overs they were well in control
of the game at 79 for 2 in 11.5 overs and then lost their way as a
part-timer with the ball Surav Ganguly, with a haul of 5 for 16 in ten
overs, terrorised them, the best ever bowling by any Indian in the instant
brand of cricket. Pakistan were all out for 148 in the 37th over, losing
their last eight wicket for only 69 runs, and that was pathetic.
It was not uncharacteristic of Pakistan batsmen to bat like that. It has
happened before on many occasions, but this time the manner of the
dismissal of the frontline batsmen gave a general impression to the public
and also to the viewers in distant part of the world that Pakistan was
playing to lose and not to win. Perhaps they had planned to do exactly that.
Ganguly, with little pretensions to top-class bowling, did much damage.
Pakistan batsmen's mind-boggling approach to get to the target was shocking.
A stand of 52 for the first wicket between Saeed Anwar and Shahid Afridi
was good enough start to build on to it. Once the two were caught off
Debashish Mohanty and Abey Kuruvilla for 22 and 44 respectively, the
floodgates opened and the waves carried away the rest. Salim Malik offered
a simple catch at mid-on off Ganguly when 6. Ijaz Ahmed hooked like a
schoolboy would do in his first match to be caught by substitute Vinod
Kambli at long leg when only 13, Moin Khan at 7 spooned another delivery
from Ganguly at cover to Robin Singh and Hasan Raza had no clue as he hit
across the line. The rest, except Saqlain Mushtaq, were as much
irresponsible as Ganguly was made to look a dangerous person on the kill.
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970919
--------------------------------------------------------------------
Pakistan to play Tests in S.A.
--------------------------------------------------------------------
Our Sports Reporter
LAHORE, Sept 18: The Pakistan cricket team will play a three-Test series
during its tour of South Africa from Feb 13, 1998 to March 10, 1998.
A Pakistan Cricket Board (PCB) spokesman announced in Lahore on Thursday
that the Pakistan team will also take part in the triangular cricket series
of one-day international matches to be played in South Africa from April 3,
1998 to April 23, 1998. Besides the teams from Pakistan and the host South
Africa, the World Cup champion Sri Lanka side will also take part in the
series, which will make the competition a hard-fought one.
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