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Week Ending : 25 October 1997 Issue : 03/43
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FBI agent says he cannot name Pakistan officials
World Bank chief asks govt not to review cases
Parliament alone can fix number of judges: PM
US House may sanction refund of F-16 money
Over 50,000 form human chain in AJK
---------------------------------
Forex reserves up at $1.55bn
Govt gets two offers for 30-year lease
World Trade Centre to be set up at Port Qasim
Devaluation: a no-win situation
Privatization process beset with snags
Devaluation: will it help us beat India?
EC imposes dumping duties on bedlinen
Hub Power and PTCL battered, fall-out of HK crisis
---------------------------------------
The bare bones: autumn 1997 Ardeshir Cowasjee
Water, water everywhere.... Irfan Husain
Terror remains untamed Aziz Siddiqui
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Poor planning exposed
Pitch drying operation embarrassing
Nawaz Sharif summons UBL chief, SEVP
Jahangir Khan sad on sacking of sportsmen
German coach to train soccer players
Wasim Akram serves notice on Pak-Suzuki
Pakistan-India hockey series being finalised
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971021
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FBI agent says he cannot name Pakistan officials
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Shaheen Sehbai
WASHINGTON, Oct 20: The Kansi case took a dramatic turn on Monday
when the FBI agent who had arrested him in a Dera Ghazi Khan hotel
refused to disclose, during cross-examination, the identity of the
Pakistan law enforcement people who had accompanied him during the
operation.
Agent Garrette was ordered by the Fairfax trial court judge to
answer the defence attorney's question who was with him, but the
witness said it was classified information and he could not
disclose it. The judge at one time hinted he might have to jail a
federal official.
The importance of the disclosure was stressed by the defence which
wanted to prove that the FBI and Pakistan authorities had jointly
arrested Kansi and if that could be proved, Kansi could invoke his
4th Amendment rights under the US constitution.
If Kansi was allowed to invoke his 4th amendment rights, all the
statements he had made to the FBI officials would not be admissible
in his case as evidence and that could make the prosecution's job a
lot more difficult before a jury.
But agent Garrette twice refused the orders of Judge Howe Brown
although he conceded that some Pakistan officials had been present
immediately after Kansi was arrested by him and three other FBI men
from his hotel room.
He said immediately after the arrest Kansi had been handed over to
the Pakistan authorities and kept in a cell for two days during
which the FBI men remained constantly with him.
He did not disclose where the cell was located but he said the FBI
men had remained with Kansi to ensure that no one interrogate
Kansi, as well as to provide food and rest to the accused.
The FBI agent told the court that Kansi had signed the statement
after he was told about his rights. He had waived his rights and
had indicated he would not hire a lawyer to defend himself.
The signed statement, which was counter-signed by another FBI agent
on board the plane, was placed in the court record by the
prosecution.
Kansi also told the FBI agent that he had a Master's degree in
English language and he understood and spoke the language very
well.
Agent Garrette said he had spent over one and a half years to hunt
for Kansi since the killing of two CIA men in front of the CIA
headquarters in Langley in January 1993.
He also stated that Kansi had signed his name on the statement as
"Kasi" claiming it was his real name.
The alleged confessional statement was not admitted by the judge as
evidence but was taken in the file under seal with the possibility
that if may be entered as evidence later.
The defence was arguing that because Kansi had been arrested by the
FBI in a joint venture with Pakistan authorities, he could invoke
his constitutional rights and that would protect him from the
statements he had made during the flight from Pakistan to the US.
State attorney Robert Horan said it was for the defence to prove
that Kansi was either a US citizen or was entitled to protection
under the US constitution.
Judge Brown said he agreed with the prosecution that Kansi had to
establish a prima facie case that he was entitled to all the
rights.
The FBI agent was brought on the witness stand by the prosecution
to prove that Kansi had made the confessional statement in the
plane voluntarily and not under duress or coercion.
Attorney Horan repeatedly asked the FBI witness whether he
threatened Kansi or offered him leniency for making his statement,
and the witness replied in the negative.
Earlier at the beginning of the hearing, prosecutor Horan conceded
that the FBI had no jurisdiction in Pakistan to arrest Kansi.
He also agreed with the defence stipulation that Kansi had been not
produced before a judicial magistrate after his arrest until he was
brought to the US.
Horan also conceded that in the arrest of Kansi the Vienna
conventions had not been complied with and his arrest was not made
in pursuance of any Pakistan document which allowed him to be
seized.
The court was told the CIA and the FBI had refused to comply with
subpoenas issued by the defence to give files and documents of the
Kansi case to the defence lawyers.
"The FBI has handed over some newspaper clippings saying this was
all that they had in the Kansi file," lawyer Romano told the court.
The defence also argued that Kansi had been extradited to the US in
violation of the Pakistan-US extradition treaty, copies of which
were placed in the court record by the defence. When the defence
lawyer, Ms Meleen, cross-examined the FBI agent, he admitted at one
stage that he handed over Kansi to the Pakistan authorities
immediately after the arrest but refused to identify the
authorities.
The court broke up for a recess and the cross-examination was
expected to continue.
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971022
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World Bank chief asks govt not to review cases
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Ihtashamul Haque
ISLAMABAD, Oct 21: World Bank President James D. Wolfensohn has
called upon the Pakistan government not to review the cases of
private power plants set up during the PPP government.
Informed sources told Dawn the World Bank chief, who had met the
president, the prime minister and the minister for finance,
observed that reviewing the cases of the private power projects
would discourage foreign investment in Pakistan.
Mr Wolfensohn maintained that Pakistan needed substantial foreign
investment which would only come when the apprehensions of the
investors were removed, specially of those who had established
private power plants during Benazir government.
Sources said the World Bank president was told that the government
only wanted to ensure transparency in the privatisation process and
that the purpose was not to discourage investors.
The government, they said, assured the World Bank chief that if, at
all, any review was made, it would not necessarily mean the
cancelling of a certain power deal.
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971024
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Parliament alone can fix number of judges: PM
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Ihtashamul Haque
ISLAMABAD, Oct 23: Prime Minister Nawaz Sharif said here on
Thursday that only parliament had the right to determine the
strength of the judges of the Supreme Court.
"We certainly want to resolve this issue through mutual
understanding but it should be very much clear that it is
parliament which has the right to determine the strength of the
judges of the Supreme Court", the prime minister said.
Speaking at a news conference at the PAF base, Chaklala, before
leaving for Edinburgh to attend the Commonwealth summit, he,
however, said the issue of the strength of the judges would be
resolved by taking all the important institutions into confidence.
"We would also be consulting Bar associations with a view to
arriving at a consensus ", he said, and added: "When this issue
will be taken to parliament, we will consult all the important
institutions of the country".
Mr Sharif, nevertheless, denied his government had decided to move
in the Supreme Judicial Council any reference against Chief Justice
Sajjad Ali Shah. He regretted that some newspapers were publishing
stories without any substance. "I do not know how to respond to
your question because some newspapers have published about this so-
called reference and you are now trying to get it confirmed from
me", he said.
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971024
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US House may sanction refund of F-16 money
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Shaheen Sehbai
WASHINGTON, Oct 23: An important member of the House foreign
relations committee on Wednesday indicated the US House may
sanction refund of F-16 money to Pakistan, to resolve the pending
issue, but it was not clear whether or when that may be done.
Congressman Doug Bereuter, Chairman of the Asia-Pacific sub-
committee of the foreign relations committee said at a hearing on
South Asia that a proposal to appropriate money for the F-16s was
pending with the Congress.
His remarks came during testimony by Rick Inderfurth, Assistant
Secretary of State, before the sub-committee and after Dana
Rohrabacher, a congressman who sympathises with Pakistani causes,
raised the F-16 issue and forcefully demanded that either Pakistan
be delivered the planes or refunded the money.
Bereuter's remarks were not clear whether the proposal to
appropriate the money was a new one or it had been lying with the
Congress for some time, neither it could be construed by observers
as any definite move to resolve the issue.
The Clinton Administration has been trying to resolve the issue by
selling the Pakistani aircraft to a third party, but for the last
over two years no progress has been made. The Administration has
not attempted to take the issue to the Congress to seek a budgetary
sanction to return the money as it thinks the proposal may not be
adopted.
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971025
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Over 50,000 form human chain in AJK
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Our Correspondent
MUZAFFARABAD, Oct 24: In a unique expression of solidarity with the
people of Indian held Kashmir who have waged a war of attrition
against Indian rule, more than 50,000 men, women and children
formed, on Friday, a 56km long human chain from here to Chakothi
near the Line of Control. The event coincided with the 50th
anniversary of the foundation day of AJK government.
Almost all political and religious parties of Azad Kashmir, had
united under a common platform, the Jammu & Kashmir Solidarity
Forum, in the campaign spread over the past six weeks.
At 8:30am on Friday, representatives of the JKSF delivered a
memorandum, signed by all the members of the JKSF, to the UN
military observers.
The memorandum called upon the UN Secretary General Kofi Annan to
grant Kashmiris their unfettered right to self-determination,
arrange complete withdrawal of Indian troops, facilitate return of
two million displaced Kashmiris and take suo motu action against
the Indian government which was contemptuously violating the United
Nations resolutions 51(1995) 91(A) of 1957 by granting autonomy to
Ladakh in violation of the UN resolutions and the UN charter.
The human chain started from the office of United Nations Military
Observers post near Domail, the confluence of river Neelum and
Jehlum, where women had been lined up on both sides of the road.
People from all parts of Azad Kashmir had travelled to the capital
to join the human chain and show the outside world that the hearts
of the Kashmiris on both sides of the LoC throbbed together.
Eyewitness reports say although the chain was to be formed between
12:00 noon to 1:00pm, the people had gathered on the road much
earlier.
"Indian dogs go back." "We want freedom." "Right to self-
determination is our birth right." These were the slogans the
children and girls were raising.
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971025
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Forex reserves up at $1.55bn
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Staff Reporter
KARACHI, Oct 24: Pakistan's foreign exchange reserves stood at
$1.559 billion on October 18 � three days after the 8 per cent
rupee devaluation.
According to the figures released by the State Bank of Pakistan on
Friday, the reserves totalled $1.559 billion on October 18 � up
from $1.548 billion on October 11 � showing a growth of only $11
million within a week. The modest increase in the reserves should
have been more substantial had the huge 8 per cent devaluation not
come about on October 15.
The SBP statement shows that on October 18 the approved foreign
exchange as reported by the issue department stood at $1.143
billion and the same reported by the banking department totalled
$415.394 million. On October 11 the two figures stood at $ 974.780
million and $573.125 million respectively.
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971025
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Govt gets two offers for 30-year lease
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M. Ziauddin
ISLAMABAD, Oct 24: Two consortia, one backed by South African
sponsors and the other by Italian business interests, have made
multi-million dollar offers for a 30-year lease of the about to be
completed Islamabad-Lahore motorway.
The 1.2 billion dollar motorway, which is expected to be
inaugurated on November 26, carries 450 million dollars of Daewoo
loan and the rest is budgetary allocations in rupees (Rs 22
billion).
Paktoll, the consortium headed by South African sponsors and backed
by an Omanese business firm has offered to pick-up the Daewoo
liabilities, pay 200 million dollars up front and an average 100
million dollars a year over the next 30 years from the incomes.
The annual payment offer of Rs 100 million is based on the traffic
projections made by the National Highway Authority (NHA) with the
caveat that it would go up or down in line with the actual incomes
from traffic.
There is no mention in the offer about the incomes from sub-leasing
of facilities like motels, shopping centres etc on the motorway.
The consortium has, however, offered to submit a bid bond of 20
million dollars. The other consortium, Auotrostrada which is
represented in Pakistan by a Pindi businessman has offered to pay
75 million dollars up front, pick up the Daewoo liabilities and
guarantee 2.1 billion dollars payment to NHA over 30 years from the
incomes.
Anything over and above 2.1 billion dollars would be split 50/50
between Autostrada and the Government of Pakistan. The income in
this offer is defined the sum total of incomes from traffic and
sub-leasing of facilities along the motorway.
It is understood that the two offers also pick up the expenditure
on maintenance including repairs and improvements of the motorway.
The government has not yet taken a firm decision on the offers and
according to some officials, more lucrative offers were expected
after the completion of the motorway.
These officials said the two offers have their own merits with
payment of nearly 50 per cent of the total expenditure on the spot
and the remaining over the next 10 to 15 years and substantial
profits from then onwards. Any offer which would make good the
entire expenditure in a matter of two years with 75 per cent of the
payment up front is likely to meet a favourable response, they
added.
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971021
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World Trade Centre to be set up at Port Qasim
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Ihtashamul Haque
ISLAMABAD, Oct 20: The Minister for Finance, Senator Sartaj Aziz
chaired, here on Monday, the first meeting of the Cabinet Committee
on Investment (CCOI) which approved the setting up of the World
Trade Centre at Port Qasim at a cost of over $250 million.
The proposed World Trade Centre would have facilities of
international exhibition, permanent display centre, warehousing
facilities including refrigerated storage, hotel, merchandizing
plaza etc. The estimated cost of the project ranges from $250
million to $300 million.
Informed sources told Dawn that the meeting also approved $500
million investment plan that sought to introduce real "One-Window"
operation. All arrangements, sources said, would be made to offer
all kinds of facilities to both the local and theforeign investors
by having the representatives of all the concerned ministries and
offices under one roof so that they should not face problems in
getting their problems resolved instantly.
The CCOI which has recently been created by the prime minister to
facilitate new investment in the private sectors also approved the
provision of Liquefied Petroleum Gas (LPG) handling and storage
facilities by utilizing the exiting jetties of ENGRO and FOTCO at
Port Qasim. This would ensure adequate availability of LPG at
economical prices and appropriate safety standards.
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971020
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Devaluation: a no-win situation
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M. Ziauddin
THE DEVALUATION was imminent, it was only a matter of time, the
right political time. Coming as it does only 5 days before the IMF
board meeting for ratifying the ESAF/EFF agreement, it seems the
decision could not have been postponed much longer whatever the
political consequences.
The dollar had been appreciating for a long time against most of
the hard currencies and with it, the rupee was also going up rather
artificially. And we had begun subsidising the foreign exporters
sending goods to Pakistan.
Meanwhile, the currency crisis of East Asia hit the ceiling forcing
most of the Asian tigers to devalue their currencies. Many of them
are our competitors in textiles, our main item of export. Their
devaluation robbed us of a thick slice of the competitive edge. The
Indian rupee also followed suit, making it all the more imperative
for us to devalue.
Also, with the domestic rate of inflation at over 12 per cent
officially (20 per cent unofficially), against 2 per cent in
countries from where we import most, about 10 per cent downward
adjustment in the rupee-dollar parity had become all the more
imminent.
This is the third October in a row which has seen massive
devaluation of the rupee. In October 1995 and 1996 also the country
had to resort to devaluation. Like the two previous occasions, this
time also the devaluation has followed the collapse of the budget
in the very first quarter.
The latest reports emanating from the CBR indicate that the
shortfall in revenue collection was to the tune of as much as Rs 9
billion.
Against the target of Rs 62 billion, an estimated Rs 53 billion was
collected. An almost 15 per cent decline against a revised target.
And against the collection of the first quarter of last year the
decline has been as much as 7 per cent. Even this collection was
made possible because of tax returns filed in September on the
incomes earned last year.
In order to keep bank borrowing within limits in the face of such a
marked decline in incomes, the government in the first quarter
resorted to further cuts in development budget.
The finance ministry held up releases for even the core projects
(except the motorway), except amounts needed for salaries. On the
non-development front also, expenditures on medical bills,
newspapers, petrol etc are being withheld.
The stagflation that had risen its ugly head in early 1996
(calender) and which had persisted throughout the crisis ridden
months of 1996 was attempted to be broken by the newly elected
government of Nawaz Sharif by announcing measures ostensibly to
strengthen the supply side of the economy.
The cost of production was brought down all around. But so far the
investors have not shown any inclination to take advantage of the
new business friendly policies of the government. This has
manifested in the stagnating exports and declining imports.
To be fair to the government, it perhaps knew that things would not
improve at least for 12 to 18 months. It had planned to fill the
gap with the incomes from an accelerated privatisation process
(estimated to be in the region of $7-8 billion in the first year),
recovery of bad loans amounting to Rs 135 billion and by offering
amnesty to black money holders.
But neither the privatisation process nor the recovery operations
brought in the needed resources to make good the losses expected
from the economy in the first year of restructuring. In fact the
privatisation process did not even take off and the loan recovery
measures simply collapsed.
Therefore, the crunch. The revenue incomes reflect a massive
stagnation on the production front. On the other hand the stoppage
of almost all the public sector developmental activity (except the
motorway and facelift of city of Lahore), has equally affected the
incomes and employment situation generally. And together, the two
have caused the persistent stagflation to become even more acute
than it was last year.
Now, let us see what the delayed devaluation is likely to do
immediately. The foreign debt liability would go up steeply in
direct proportion to the extent of the devaluation restored to.
Next, the import bill for food and fuel would go up sharply.
The government has announced that it would not let the prices of
kerosene, HSD, furnace oil, diesel and atta be affected by the
increase in the import bill of crude oil and wheat.
That is understandable because there is enough room in the tax
component of imported POL to take care of the higher import bill on
the rupee side. But then to that extent the government's resources
would get blocked which otherwise were budgeted for something else.
The cost of production which the government had done so much to
decrease by reducing taxes would surely go up again making the
intending investors all the more reluctant to invest. The vicious
cycle would continue.
The one sector which stands to gain by the devaluation is the All
Pakistan Textile Manufacturers Association (APTMA). But then the
world today is in the grip of a recession. Therefore, even if there
is a bumper cotton crop in the country this year and even if the
APTMA regains the needed competitive edge in the export of yarn and
textiles, the decrease in the demand due to the recession is likely
to keep the export earnings of the APTMA members as low as they are
today.
The devaluation could not have been averted. In fact it should have
been resorted to earlier. But the adverse impact of the devaluation
too cannot be averted while there would be no gains on the export
front.
The ripple effect of enhancement of prices of POL products (except
kerosene, HSD, diesel, and furnace oil) as also the prices of other
raw materials, intermediaries and finished goods is expected to
accelerate the rate of inflation further. It is a case of no-win
situation. You are damned if you do, you are damned if you don't.
We have nobody but ourselves to blame for having painted ourselves
in to such a tight corner.
How do we get out of this corner? That is the $64,000 question.
Motorways certainly cannot do the job. Self-sufficiency in food, a
population growth rate of 1.5 per cent and universal primary
education can.
But do we have the time, the inclination and the resources to
achieve this before it is too late? That is another one of those
$64,000 questions which have been agitating the minds of the masses
of this country for the last 50 years while the ruling elite
continues to dip into the shrinking till.
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971020
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Privatization process beset with snags
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Ihtasham ul Haque
IN-FIGHTING and the non-cooperative attitude of the major
ministries including communication, petroleum, water and power, and
railways has been a major cause for the delay in privatising the
remaining state-owned enterprises.
The Privatisation Commission (PC) which has been assigned the task
of completing the whole privatisation process by June 1998 has
reportedly expressed its inability to deliver, saying that it does
not have the support and cooperation from the major economic
ministries.
It has also informed Prime Minister Nawaz Sharif that the 'vested
interest' of many ruling party legislators was hampering the
process due to which it was not expected that the entire exercise
could be completed in time.
Insiders maintained that the government's plan to sell every thing
to obtain $15 billion in the next three years was fast becoming a
dream as the situation on the ground was different despite major
efforts being made by the Privatisation Commission and its
chairman, Khawaja Muhammad Asif.
"Even the plan to get one billion dollars in one year by selling a
few banks, DFIs and industrial units may not be possible to retire
the most expensive foreign debt," an official commented.
He said that unless the officials of the ministries of petroleum
and natural resources, communication, water and power and railways
changed their attitude, there could not be any hope to complete the
process by June next year.
The failure is said to have been experienced in the privatisation
of the Pakistan Telecommunication Company Limited (PTCL) which,
according to its officials, could give $10 to 12 billion alone.
However, they alleged that the high-ups of the ministry of
communications did not want the privatisation of the organisation
because of their own vested interests.
Chairman PTCL Nasim Mirza is said to have told the high authorities
that he would resign by June this year if he continued to receive a
tough time from the officials of the ministry. He has made it amply
clear that he would not be available to continue serving the
organisation under these circumstances and that the top level
people must intervene to rectify the situation.
Interestingly, when the privatisation was planned for the PTCL, the
ministry of communication had approved Rs 50 billion expansion and
modernisation programme.
The Minister for Communi-cations, Azam Hoti is said to be in the
fore-front to oppose the privatisation of the PTCL and has every
time resisted the pressure using his party, ANP's bargaining
position in the government.
It is said that Khawaja Muhammad Asif who is a good friend of
Asfandyar Wali has failed to convince him to go along with the
privatisation of the PTCL.
The PTCL Chairman has reportedly asked the high ups to help
privatise the organisation as early as possible. He said that by
the year 2000, the international communication network system has
to be liberalised under World Trade Organisation (WTO) rules and
that if no timely privatisation of the organisation was done, then
things could be pretty difficult for the government to seek $10 to
12 billion through its privatisation.
The commission faces a formidable job of persuading the officials
of the major ministries. It continues to face criticism that it has
only been able to privatise two ghee units and a bank and that how
could it be able to conduct the privatisation of more than 90
state-owned industrial units.
The officials of the commission maintain that they are facing
difficulties in privatising the loss-making public sector units and
that everyone wanted to buy only running and efficient units.
For example two months ago the PC decided to privatise the
remaining six ghee units of the ministry of industry but only two
could be sold and that too not because of the machinery installed
there but due to the precious land associated with the units.
About the units working under the ministry of water and power, it
is said that since there is no policy of the government, it is not
possible to privatise thermal power units.
The one which has already been sold, Kot Addu, has been a target of
frequent criticism by the government. The Minister for Water and
Power, Major (retd) Raja Nadir Pervaiz has said more than once that
the government would cancel the Kot Addu deal because a certain
procedure was not followed. This has panicked foreign investors,
who are reluctant to come forward for taking part in the
privatisation process of the country.
The British power company which purchased the Kot Addu power plant
by paying $150 million and accepting $700 million liabilities is
said to have protested over the issue and warned of serious
consequences if the plan for cancelling the deal was considered. It
was also planning to go to the higher courts to contest any
decision on the issue.
The privatisation of Sui Southern and Sui Northern gas companies
along with other units under the ministry of petroleum and natural
resources were experiencing similar problems. Although some initial
efforts have been made by the Privatisation Commission to disinvest
Sui Southern and Sui Northern, but it could not do the job due to
the opposition by the ministry.
The problems with the Water and Power Development Authority (WAPDA)
are more serious as it continues to be a loss-making organisation.
There have been various proposals to privatise it but so far
nothing could be done.
So far the PC has received about Rs 54 billion by privatising
around 90 state-owned units in about six-year period (during both
the first Nawaz and two Benazir governments).
The new target to complete the entire privatisation process by June
1998 is apparently difficult to meet keeping in view the slow
process on which Prime Minister Nawaz Sharif also reportedly
expressed his concern and asked the authorities to accelerate it.
"My effort is to do the job efficiently ensuring transparency and
to avoid the blunders of the PPP government," said the PC chairman.
He said he would see to it that the entire process is complete by
June next year.
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971020
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Devaluation: will it help us beat India?
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Muhammad Aslam
THE RUPEE, after the 8.7 per cent devaluation, on October 15 is now
about Rs 8 or 18 per cent cheaper against its Indian counterpart,
but it is too early to predict whether or not it will enable our
exporters to recapture markets lost to the Indians a decade ago
despite a massive competitive edge.
The Indian rupee is trading in the range of Rs 36.20 - Rs 36.25 to
a US dollar for quite sometime against Pakistan's Rs 44.05 and Rs
44.27 for buying and selling respectively.
With a strong production base and diversified export products, the
indications are that the Indian exporters might not be at a big
disadvantage against Pakistani products on the world markets as
their value-additions to the local manufctures provide a much-
needed hedge against any major turmoil in the South Asian
currencies.
Loud whispering in business circles that India might also lower its
dollar parity rates to meet the Pakistani threat to its exports is
not relevant to the new finacial reality as the Indians have the
capacity to defy the dictates of the donor agencies.
"It is a text book advice," said the Indian finance minister while
commenting on the IMF suggestion to devalue the rupee, adding,
"political governments are not run on text book advice."
However, some major Indian export items are likely to be affected
by the Pakistani devaluation, notabale among them could be leather
and rice.
In both these sectors, the Indians have outperformed their
Pakistani counterparts both in price and quality.
The Indians, for instance, export leather products including
footwear and garments worth Rs 60 billion each year with a growth
rate of about nine per cent but after the devaluation they might
not be able to compete with Pakistain.
Similarly, local rice exporters are now in a position to break the
decade-old Indian monopoly, notably in the Gulf, after beating the
Indians on the price front.
But Indian textile exports, which account for more than a half of
the total annual volume of $30 billion, are not likely to be
affected by the devalaution, as Pakistan is not a competitor as the
former exports a variety of quality fabrics and value-added cotton
yarn mostly of fine counts.
"Pakistai spinners generally export coarse counts of cotton yarn
below 30 counts and a limited quantity of fabrics, which could
hardly match the Indians," spinners said.
"Rice exports may not touch the high mark of $3 billion, but the
private sector could build-up a strong position for the smooth
outflow of the commodity in the years to come," some leading
expoters said.
But a major breakthrough could be achieved on the cotton export
front if Pakistan really harvests a large crop of over 10 million
bales, which will ensure an exportable surplus of more than a
million bales.
Meanwhile, trade and industry circles generally welcomed the
massive 8.7 per cent devaulation of the rupee by the central bank
on the perception that it will boost falling exports enabling the
government to achieve the export target of $9.2 billion.
"But much enthusiasm appears to be in the textile sector, which
accounts for over 60 per cent of the total annual exports and
rightly too as its main world competitors have already lowered
their parity levels barring India," financial analysts said.
However, an air of pessimism also prevailed as the centralbank's
abrupt decision could add significantly to the production costs as
imported raw materials will be more expensive, they added.
"It will enhance the foreign debt of $32 billion, and the current
account deficit of $3.37 billion in that ratio but it is not clear
whether or not the export sector could match these increases," some
economists said.
Pakistan has a very low production base as compared to India and
some other countries and the devaluation being a double-edged
weapon seldom pays back in the same ratio, they added.
The spinners were, however, not inclined to say what will be the
quantum of increase in textile exports but some leading ones among
them hoped it could be as much as 16 per cent
Cotton exporters basing their export sales of lint on the expected
surplus of 1.5 million bales categorically said they could hit the
high mark of 2 million bales after the devaluation.
"It has given a tremendous boost to our competitiveness on the
world markets and there is no reason to doubt that we could hit the
target and at a right price," said a leading exporter.
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971019
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EC imposes dumping duties on bedlinen
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Parvaiz Ishfaq Rana
KARACHI, Oct 18: An overwhelming majority of European Union (EU)
member states has voted in favour of imposing enhanced definitive
anti-dumping duties as proposed by the Commission on imports of all
types of bedlinen originating from Pakistan.
According to a message received here on Saturday, 14 out of 15
member states of European Commission (EC) on October 16 voted in
favour of the proposal to impose definitive duties in the range of
6.9 per cent to 8.2 per cent on imports of bedlinen from Pakistan.
Estimated annual export of bedlinen from Pakistan to EU states
comes to around 27,000 tons amounting to a value of around $200
million.
The export of bedlinen which also falls under quota category stood
at 74 per cent upto September and normally entire quota is utilized
by Pakistan upto December 31 of each year.
According to details, the Commission proposed final duty in the
range of zero percentage to 8.2 per cent for individual companies,
for non-cooperating companies the punitive margin has been fixed at
8.2 per cent, but for cooperating companies the dumping margin has
been enhanced by 0.4 per cent to 6.9 per cent.
These definitive duties proposed by the Commission and approved by
overwhelming majority of member states will come into effect once
they are notified in the official journal of the EC, and according
to some estimates they would be effective before the year is out.
However, handloom bedlinen imports are not affected by these
dumping margins.
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971025
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Hub Power and PTCL battered, fall-out of HK crisis
-------------------------------------------------------------------
Staff Reporter
KARACHI, Oct 24: Hub-Power and PTCL on Friday came in for fresh
battering, what analysts called the fall-out of Wednesday's crash
of the Hong Kong stock market, pushing the KSE 100-share index by
two per cent or 33.52 points at 1,980.68.
"The breach of the psychological barrier of 2,000 points just in
two sessions reflect that the market is still playing on a terribly
weak wicket as investors are not inclined to hold long positions
even in the pivotals," said a leading broker adding "the euphoria
created by devaluation or IMF approval of a credit line of $1.6
billion faded just in no time."
They said most of the leading shares and current favourites are
playing with an either-way range of Rs 3 as investors prefer to buy
and take profits within this range without taking any undue risk.
Some analysts did not rule out the possibility of a big inflow of
foreign funds in shares as local stocks offer an appreciable
capital gain in a shortest possible time.
"The market has the capacity to rise 15 to 20 per cent but it needs
positive background news including political peace," they added.
The market has already 8.7 per cent devaluation of the rupee, which
could attract any amount of foreign buying, and added to it is a
big boost to Pakistan's credit rating on the world financial
markets after the IMF approval for a three-year credit line of $1.6
billion, dealers said.
However, investors both local and foreign are still shaky about the
future share outlook and are not inclined to make long-term
commitment and until they stay on the performance of the market
might remain volatile.
The KSE 100-share index was last quoted at 1,980.68 as compared to
2,014.20 a day earlier as leading base shares fell further.
The market capitalization also suffered a fresh setback of Rs 8.829
billion at Rs 592.750 billion as against the previous Rs 601.579
billion, falling below the resistance level of Rs 600 billion.
Minus signs were strewn all over the list as leading shares came in
for fresh selling at the higher levels and finished with an
extended fall amid active trading.
Energy shares again led the market decline falling sharply under
the lead of Pakistan Oilfields, which shed another Rs 10 on renewed
post-dividend selling. Southern Electric, Pakistan Refinery, PSO,
Sui Southern and Japan Power were among the other major losers.
Bank shares, which have been active demand in the post-devaluation
sessions, also came in for strong selling and were marked down,
major losers among them being MCB, Al-Towfeek Bank, Prime Bank and
Faysal Bank.
Other leading shares which fell included Lakson Tobacco, Pakistan
Tobacco, Knoll Pharma and Engro Chemicals, falling by one rupee to
Rs 2. Leading gainers were led by Grays of Cambridge, Delta
Insurance, KESC, Pakistan Cables, Glaxo-Wellcome, Fauji Fertilizer
and Lever Brothers, which rose by 75 paisa to Rs 10.
Trading volume fell below the 100 million shares mark at 79.166
million shares as leading investors stayed on the sidelines owing
partly to weekend considerations.
There were 187 actives which came in for trading out of which 108
shares fell, 41 rose with 38 holding on to the last levels.
Hub-Power again topped the list of most actives, lower 95 paisa on
27.270 million shares, followed by PTCL, easy Rs 1.15 on 24.139
million shares, ICI Pakistan, steady 10 paisa on 11.156 million
shares, Southern Electric, off Rs 1.05 on 2.206 million shares, and
FFC-Jordan Fertilizer, easy 20 paisa on 1.977 million shares.
The other actively traded shares were led by KESC, up Rs 1.10 on
1.787 million shares, followed by Japan Power, easy 20 paisa on
1.646 million shares, Bank of Punjab, unchanged on 1.32 million
shares, Sui Northern, off 70 paisa on 0.830 million shares, and
MCB, off Rs 2.10 on 0.782 million shares. There were several other
notable deals also.
DEFAULTING COMPANIES: Trading on this counter remained dull as only
Gammon Pakistan came in for trading and was quoted further higher
by five paisa at Rs 5.95 on 500 shares.
DIVIDEND: Balochistan Wheels, cash 15 per cent, First Paramount
Modaraba, 10 per cent, Pakistan Oilfields, final 15 per cent, 15
per cent interim already paid for the year ended June 30, 1997.
-------------------------------------------------------------------
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971019
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The bare bones: autumn 1997
-------------------------------------------------------------------
Ardeshir Cowasjee
THE first of this series on my talks with Shahid Husain was printed
in September 1995, just before he retired as a Senior Executive
Vice-President of the World Bank. Now, on October 15, whilst on his
way back to the United States we had another conversation and this
is what he had to say:
"I am less pessimistic than I was two years ago. Then I saw
unparalleled corruption and a total disregard for the national
interest. Today I do feel that the head of government has his feet
firmly on the ground and wants to do good by the country. The
question is: Has he the means to do so, will he have the time, and
does he have his priorities right?
"The most important factor about Pakistan, when I look back at the
past 50 years, is the continuing inexorable decay of its
institutions. There are big buildings, innumerable public
functionaries, but the government as a functioning system has
ceased to exist. The extreme example is WAPDA, but that is just one
of many.
"The questions that you put two years ago when you wrote 'The bare
bones' are still valid, and if you are a common man in Pakistan and
you pay taxes you have a right to ask these questions.
"Do you get security for yourself and your family? Do you get
education for your children? Does the government provide health
facilities?
"Unfortunately, the answers to all three are still 'No', and there
are no signs of an early redress.
"The second most important factor is that the government has lost
its fiscal capacity. Every time taxes have been raised, the
government has collected less in real terms. By its own estimates,
fifty per cent of the potential tax receipts are lost through
corruption or straight evasion. The situation is so bad that after
debt servicing and defence spending nothing is left for the
fulfilment of the essential functions of the government. Some
fiscal sanity has been achieved, largely by slashing the
development programmes.
"The third important factor is the tremendous centralization. The
provincial governments, particularly that of Sindh, have neither
the financial capacity nor the administrative capacity to fulfil
their functions.
"Given these, while the immediate haemorrage has to be stopped, the
government has to take a long view. It has to undertake a sustained
programme of institutional rehabilitation � which means that a much
smaller government, possibly half the present one, has to be made
more effective and nimble. It has to improve its collection while
reducing the number of taxes. It has to decentralize and build up
provincial and local governments.
"The damage done by the two Bhuttos to the system has to be
reversed. Public services have to be reconstituted on the basis of
competition and competence. Salaries have to be improved massively,
so that inadequate pay can no longer be an excuse for corruption.
The leaders have to understand that in this day and age good
organization and good administration means decentralisation, and
mainly the improvement of the capacity of provincial governments
and the constitution of local governments in large cities,
particularly Karachi.
"An institutional rehabilitation cannot be sustained in the absence
of a functional system of education. Central and provincial
governments have to undertake a major effort to improve basic and
technical education. They must also rcognize that private
educational institutions are essential to fill the gap left by the
government. There should be no restrictions on private educational
institutions. The quality may vary, but let the market decide, as
the government is in no position to manage a public system.
"Rehabilitation of the tax machinery is critical. Tax collection
will not improve simply by hitting the CBR on the head at the end
of each quarter, or by twisting the arms of those who already pay
high taxes. The management of institutions can only improve with an
improved quality of people, the motivation of those involved, and
an improvement in systems and processes. Therefore, the government
has to think in terms of not just one quarter, but in terms of five
to ten years of fundamental reform in tax administration.
"In countries like France and Japan, top civil servants are
assigned to tax collection. The old ICS had its roots in tax
collection. The economy was then agriculture-based and an ICS
officer started as an assistant collector, moving up to become a
collector � a collector of land revenue.
"Now that tax collection is the highest economic priority, let our
tax collectors be chosen through competition, let them be trained
well and thoroughly, and, above all, let them be paid such salaries
that they cannot be pressured or reduced to corruption. It is
imperative that these salaries are linked to those paid in the
private financial sector. Then and then only can the government
take away security of service and sack them at the slightest whiff
of corruption or inefficiency.
"While the immediate task is financial rehabilitation, it is
critical not to forget that policies do not have feet of their own.
They survive and work only if you have functioning institutions. We
do not have them. Thus, a major effort to build them must be
sustained.
"The prime minister should ask himself again and again and again:
Do I have a team for all this? If he does not, let him find and
assemble around him men and women who can help him. The worst
damage he can do is to once again become a victim to party hacks
and to people whose experience is largely bureaucratic.
"Can he deliver the goods? Yes, but it is all dependent on the
quality of those around him.
"Does he have the required people? At the moment, no. In my view,
in the entire government the man with the best foresight is the PM
himself. In meetings, I have seen him show far more common sense
than those around him.
"The biggest tragedy for this government is that the Muslim
League's three years of opposition were not used to chalk out a
strategy for the future. Look at the British Labour Party. They
moved immediately, with determination and with speed, to put into
force the plan they came in with. They swiftly brought about
fundamental changes, including devolution.
"His second tragedy is the quality of people in the cabinet and in
the legislature. He has not included many new faces. He has around
him the people who were largely responsible for the failure of his
government in 1993. Unless there is a fundamental change of the
actors, the prime minister's future and the future of Pakistan is
at risk. Here again he has to learn from the British Labour Party.
Tony Blair came with a new crew and got rid of figures who were
responsible for past failures.
"Another threat to this government will be the loss of its sense of
priority and the opening up of all sorts of unnecessary fronts,
thus detracting from necessary fundamental reforms. The prime
minister must not forget his historical opportunity and his
historical task. All will go to waste unless he concentrates on the
fundamental tasks. Right now, he has no real cabinet, no competent
team.
"Unfortunately, far too many people in Pakistan believe in magic
and believe that God is on their side. They forget that God has
made a universe of cause and effect and unless this is understood,
political management will not improve. The essence of good
government is the limit of discretion.
"Private initiative does not thrive in an environment of
uncertainty and if we adopt policies that keep changing, then no
planning is possible. Under the British system of taxation, one
fine morning the budget is unveiled and is good for only one year.
In the old days when the government role was limited, this worked.
But today with the government role being so vast and all-
encompassing, the system of budget-making must change. A move to
the American system under which there are no changes for at least
five years would be a good idea.
"Security of the economic environment can only come when
arbitrariness in government is banished. Tax and policy changes
should be few and far between, there must be no discretion and such
things as SROs must go."
"I agree with you," I said. "Now, would you agree with my
interpretation of what you saw, felt, and smelt last week in that
alien city of Islamabad?" I asked.
* That Nawaz Sharif seemingly has the will, but not the team, to
mount a salvage operation.
* That Nawaz Sharif's priorities need to be sharpened and narrowed,
with a heavy focus on the reconstruction of institutions.
* That to encourage investments, policies, taxes, utility charges
will have to remain firm for three to five years.
* That there are no short-cuts, that the very shortest period
required to revive the economy and bring it close to zero again
would be at least five years of sustained effort, and that too, by
a very competent team."
Shahid agreed.
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971025
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Water, water everywhere....
-------------------------------------------------------------------
Irfan Husain
A DECADE after the mantra of privatization entered the public
policy lexicon, it is fair to ask what magic this panacea has
wrought, and how it has affected our lives.
Curiously very little, is the answer. Prices have continued
spiralling upwards; the quality of goods and services has remained
shoddy; and increased competition has not resulted in a better deal
for the consumer. But if things haven't got any better, they
haven't got much worse. However, this state of affairs may be about
to change: with the impending privatization of the Karachi Water
and Sewerage Board (KWSB), those of us condemned to live in Karachi
will soon feel the private sector's lash in right earnest.
One argument given for flogging the family silver was that the
money raised would pay off our mountain of debts. To the best of my
knowledge, this has not happened. Another reason given for the
indecent haste with which successive governments have been trying
to sell off every asset in sight is that the private sector, being
more efficient than the state, will be able to produce goods and
services more cheaply; this, combined with greater competition,
would result in lower prices. Obviously, our official spokesmen
forgot to give a dose of this gospel to our entrepreneurial class
because prices have continued to gallop far ahead of incomes.
Next, the losses incurred by state enterprises and ultimately borne
by the taxpayer would be halted; however, this has not happened
because entrepreneurs have bid only for profitable units, leaving
the loss-making ones in the hands of the state. Finally, the
private sector is supposed to be ploughing profits back in the form
of new plant and machinery, thus generating new jobs and serving as
the engine of development. Welcome to the real world. Rather than
creating new jobs, we have been axing them at a prodigious rate.
But of all the utilities to privatize, water is a curious choice
because in a sense, it is already mostly in the hands of the
private sector, at least in Karachi.For years now, millions of the
city's citizens have been making their own arrangements for the
supply of water. The affluent pay through their nose for tankers
and for bottled water, while the poor line up for hours with
containers before community taps which occasionally spew forth the
precious liquid. Indeed, the first word my nephew Nadir uttered was
"tanker." For years now, we have been paying our water bills (which
have risen four-fold in the last decade) in addition to the
payments we make to the tanker mafia.
Given the inherent inefficiency and leakages in the system, it is
no surprise that the KWSB should be running at a loss (nearly Rs
600 million last year). In order to transfer these and any future
losses to the subscriber (i.e., you and me), the government is
actively pursuing a policy to transfer the assets and
responsibilities of the Board to a private company. Actually, I am
often surprised by the public's willingness to pay the KWSB's bills
at all, given the fact that it hasn't supplied piped water to
entire neighbourhoods for years.
Nevertheless, over a period of time, we have invested billions of
rupees into the system. Now the government � at the prodding of the
World Bank and the Asian Development Bank � has in principle
decided to hand over the Board to a private company, and permit the
operator to jack up water rates at 20% per year for five years, and
the company will be given the right to free use of the KWSB assets
for 20 years. The rationale behind this strategy is that the
private sector will be able to invest in the progressive expansion
and improvement of the system, using the money they accumulate from
us.
But what is to stop the private utility company from raking in
profits without making any real investments? Given the weakness and
corruption prevalent in all our overweight agencies, there is a
real danger that we will be ripped off by these privateers (an 18th
century expression for pirates) as well as the tanker mafia while
still getting substandard water. The poor, of course, will have to
fend for themselves as best as they can. So what else is new?
So basically, what we are facing in the near future is a major
municipal asset being handed over gratis to an agency that will be
virtually free to charge us what it will, while we have to pay for
tankers as well, or queue for hours, depending on our bank balance.
So if the government doesn't get a penny, and we end up paying
more, who will benefit? No prizes for the right answer.
Understandably, many foreign utility companies have expressed an
interest in cashing in on this bonanza.
During the frenzied privatization in the UK under Thatcher, many
water boards were broken up and sold off. In the last decade,
prices have gone up enormously, and the quality of water has
certainly not improved. Many less affluent users can no longer
afford the luxury of maintaining even small gardens. A recent news
item in this newspaper informed us that the number of rats in
Britain had increased dramatically over the last few years;
scientists have ascribed this phenomenon to the fact that
privateers are not investing in the eradication of rodents to
anywhere near the extent the public sector utility service had.
Ultimately, there is a conflict between private profits and the
public good. Raising water rates cumulatively by 300% over the next
five years will undoubtedly be good for business, but how about
giving the consumer a break? The whole exercise has been marked by
secrecy and undue haste. A decision of this importance and
magnitude should not be taken before extensive consultations,
public debate and discussion. After all, we have been coping with
the KWSB's inefficiency for years, and paying for their non-
existent services as well.
So what's the rush now? It's not that the government will get a
windfall overnight: the proposal prepared by Banque Paribas and
William Halcrow, consultants to the Sindh government (at a fee of a
million dollars), calls for a 20-year period in which the KWSB
system will be exploited free of charge. All in all, we need to
think through the far-reaching implications of this proposal very
carefully, and not let foreign agencies decide for us.
Much of the information used in this article has been researched by
Dr Aly Ercelawn and his colleagues at the Creed Alliance, a group
dedicated to serving the public interest. They have voiced their
concern and criticism of this mad-cap scheme in this and other
publications. Perhaps they could kick off a discussion by appearing
on TV for a debate with the KWSB officials.
It would appear that for Islamabad, Karachi's many woes are of its
own making, and therefore not deserving of any federal funding. I
am sure when there are water riots here, our lords and masters will
echo the Queen of France's immortal advice ("Let them eat cake!")
to Parisians when they took to the streets over the shortage of
bread: "Let them drink Ava!"
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971019
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Terror remains untamed
-------------------------------------------------------------------
Aziz Siddiqui
THERE were two aspects to Arif Iqbal Bhatti's killing in Lahore
earlier this month. One was the blasphemy law which apparently was
at the root of the murder; the other was terrorism, the instrument
of his death.
Justice Bhatti, it will be remembered, was the senior member of the
Lahore High Court bench that admitted the appeal of Salamat Masih
and Rehmat Masih against their conviction by a lower court for
alleged blasphemy. That was more than two years ago, in February
1995. The bench heard the appeal on consecutive days in a highly
charged atmosphere. Before that attempts had been made on the lives
of the accused, and a third one among them, Manzur Masih, had died
of his injuries from one such attempt just outside the court
promises a few months earlier. During the appeal, menacing mobs
collected outside and around the court and kept up a denunciatory
chant while the session lasted. On one occasion the car of the
defence lawyer Asma Jahangir was vandalised and she herself had to
be placed under police protection.
Inside the courtroom, in addition to hearing the advocate general
and the counsels of the two sides the court invited a number of
eminent lawyers of Lahore to assist it. As it happened, all but one
of these amici curiae found that it was a case of no evidence.
After their release Salamat Masih and Rehmat Masih had to quietly
seek asylum abroad because of certain danger to their lives. But
for some others that was not the end of the story. In one plot
against advocates Asma Jahangir and Hina Jilani, a group from a
fanatical organisation stole into their house early one morning
along with a haversack filled with instruments good for shooting,
slaying and strangulation. The sisters and their families were
saved by a combination of wholly fortuitous circumstances.
Subsequent police investigations revealed details of the horrific
plan and the people behind it. The principal culprit however,
though identified, was never caught. The senior judge of the High
Court bench meanwhile kept receiving dire threats, as his widow has
now revealed. They kept coming to the last. Why despite this he was
not provided police protection, for whatever it was worth, is not
known. After his death there were efforts to divert speculation
about the killer's motive from the more obvious 'blasphemy'
episode. Property dispute or sectarian malice was suggested as the
likelier cause.
Was it likely for a religious gripe to be nursed for over two
years? Mob frenzy may have a short span of life, but fanatical
grouse rabidly held usually endures for as long as the score is not
settled. Especially so if the grouse springs from the very purpose
of existence of its holder. Apparently those that had vowed
retribution at the time of the court judgment did not forget their
resolve with the passage of time.
Their principal target, the alleged blasphemers, had escaped both
the mischief of the law and their own sentence. The boys' lawyers,
Asma and Hina, were next in line. But the mischief against them got
aborted and the would-be killers themselves got exposed. The
latter's attention then turned to the judge. Retired, he was no
longer in the public eye and disposing of him must have seemed in
the present circumstances unlikely to cause public stir or any
embarrassment to the government. It was unlikely therefore to lead
to any discomfort to themselves. If that was indeed the calculation
it proved not to be far wrong. The murder has hardly had an
aftermath.
Such 'holy' killers also often bide their time until someone
sympathetic to their creed gets appointed to a position of official
proximity to their intended act and can thus preempt any heat
straying their way. Bullying fanaticism exists in pockets in almost
every society. But usually it acquires spunk and converts to
murderous activism only where it is certain of clandestine official
support, connivance, indifference or incompetence. The graph of its
incidence here over the past years can almost directly be related
to combinations of the above factors. The unholy warrior is unlike
the common crook. He often needs a silent partner in crime to urge
him on and to brace him against contingencies.
The law minister claimed in a Dawn interview that his recent anti-
terrorism law had brought the average of daily killings from 10-15
before the law to five after it. He was either being incredibly
naive or plainly disingenuous.
First, incidence of terrorism is not measured between one month and
the next. It is in the nature of it to occur in waves. There were
ebbs down to that supposedly satisfactory figure of five even in
the worst days of terrorism.
Secondly, the problem is terrorism as such, not just the numbers
dead. A society is about as sick if a hundred are killed in a
month, month after month, as when twice or thrice that number is
eliminated. The canker thrives in one instance as much as it does
in the other.
Thirdly, even if the drop in the numbers proves stable that is not
necessarily an indication that the evil is beginning to be brought
under control. Fewer victims may even be a sign of worsening of the
situation if the terrorists have improved their skills and
resources sufficiently to zero in on their targets rather than kill
indiscriminately. Ask the lawyers themselves. Eighteen of their
community have been picked up in less than as many months, and at a
rate not much different after the law than before it.
The message to them � and the effect on them � has been: hands off.
They have resolved not to accept cases of alleged terrorism. They
had already been averse to getting engaged in cases of alleged
blasphemy. Thus the scope for them has been narrowing and the
prospects for the accused of various categories and for the due
process of law has been under threat from both the law and the law-
breakers.
Finally, if granted that the situation has improved what proof that
this is the result of the law the minister feels so proud of
(though earlier when the law was new and under fire he had tried to
put a certain distance between it and himself)? Did the other laws
that a colleague of his had cited as parallels, India's TADA and
Britain's Elimination of Terrorism Act, put an end to 'terrorism'
in occupied Kashmir and Northern Ireland?
If two months after our law a man walks into a former judge's
office, asks for him to be sent for from the court, then on his
arrival pumps three bullets into him and coolly walks away into the
morning sunlight telling a man on way to go and take care of a dead
body inside � does that indicate that the new law has begun to
strike terror in the hearts of the terrorists? Or if a fugitive
from the law rings up a court soon after the passage of the law and
warns it that while the law allows seven days to an accused he, the
outlaw, wouldn't permit a sentencing judge the respite even of a
single day � should that afford Mr Khalid Anwar any reassurance
about the impact of his handiwork?
It may be claimed that such persons are just the remnants from the
past. But are they? Even if that is so, the brazenness those few
are still showing should cause worry rather than permit price. They
can yet be capable of creating incidents on a scale good enough for
many times their number. Terrorist leadership is always,
everywhere, confined to just a handful of persons anyway.
Religious terrorism in particular will not go away by just bringing
in a more stringent law. When were even the older laws consistently
enforced? Was it absence of a strong enough law that caused the
lapidators of Shabqadar and the lynchers of Sargodha to freely
stalk the neighbourhood afterwards? Or allowed those who poisoned
Tahir Iqbal in his prison cell or killed Manzur Masih in daylight
bazar to remain unpunished? Or let the false accusers of Gul Masih
or Salamat Masih, Manzur Masih and Rehmat Masih to remain
unquestioned? Or kept outlaws like Riaz Bisra and Raza Konain in
defiant, terrorising freedom. Or prevented the seminarian nurseries
of sectarian hatred from being purged? Did the sectarian killers of
the past go free just because there was no law to bring retribution
to them, and those who poured sectarian poison or mouthed
denunciation of public-spirited activists as kafirs and wajibul
qat'l, did they have their way because there was no law to silence
them? Only if the answer to these were a yes there might have been
room for a new law.
The government may soon be tested some more. Religious parties like
the Jama'at-i-Islami and the JUI, the one credited with launching
the Taleban on the world, are just now reviving up to make their
political presence massively felt. What they may end up doing is to
create an atmosphere conductive to the more irresponsible and
extremist elements' beginning to revel in a feel of militant power
and self-glorifying intolerance. Should that happen this government
does not seem equipped to make an appropriate response to it.
Few apart from Mr Khalid Anwar will doubt that if the national
leadership remains as funky about religious terror as in the past
no anti-terrorist law will do any good. On the other hand, if the
attitude becomes firmer no terrorist law will be necessary, with or
without its obnoxious features.
Indeed how many of our crop of political leaders have denounced
religious bigotry as manifested in the late Arif Iqbal Bhatti's
killing? That is one measure of how insidious terror reigns here.
971020
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Poor planning exposed
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Qamar Ahmed
Promoting the game is one thing and running it properly, another.
In case of Pakistan which is now considered to be one of the top-
ranking cricket playing nations along with Australia, South Africa
and West Indies, the game is being reduced to mediocrity through
mindless planning and lop-sided itineraries of a touring team.
When a new cricket board was set up on a professional line with a
full time chief executive, an administrator and a marketing expert
one would have assumed that things would change for the better and
the game would be richer for it. The players of the home team and
the visitors will be saved the rigours of unnecessary travel in the
country and established centres with proper facilities would be
used for the bigger matches like the Tests and the smaller ones for
the one-day and side games. But things remain as shabby as they
have always been.
Millions of rupees have been spent on renovations of the centres
like Qaddafi Stadium Lahore and National Stadium Karachi and yet a
test has been given to Sheikhupura which has no hotel for the home
or the visiting team and no convenient or comfortable mode of
travelling to the place. Staying in a hotel in Lahore and
travelling every day for at least three hours for the Test is not
what a modern day cricketer or a spectator relishes.
In an age of satellite, things travel fast, matches are beamed to
numerous countries and then the commentators indulge in their
favourite past time of showing the pars of the city to the world to
give them the opportunity to visit the place and the country. I do
not think that a place like Sheikhupura offers much except that it
would leave a rather poor image of a country which is much prettier
than that.
Why is it that countries like England, Australia, South Africa, new
Zealand, West Indies play their Tests against visiting teams at
established centres and not at some remote and unknown place like
Waga Waga or Towoomba or in Torguay or at St Nevis or St Kitts.
Only because places like that do not cater for an international
event. As far as watching cricket is concerned they get it on the
television anyway and those who are keen enough do travel to
established Test centres with the charm of not only seeing the
match but also experience the hustle and bustle of a big city.
The notion that taking Tests to smaller places and towns would fill
the grounds and that the game will spread in remote pars of the
country is wishful thinking. Television and broadcasting has spread
the game in every corner of the countries where it is played. The
interest generated through it is much wider than staging a Test in
a smaller place on the pretence of promoting the game.
Places like Sheikhupura and Gujranwala, Sialkot and Hyderabad where
no proper facilities of international standard exist should be
given only a one-day game at the most till they are able to provide
the type of facilities that the modern players have become used to.
What happened at Sheikhupura on Friday made a poor impression about
the state of this game facilities-wise in this country. Primitive
pitch covers and mopping up facilities ruined the chances of any
play on the first day and that certainly is not a pleasant
experience for the players or for the people who must have accepted
all kind of travelling difficulties to get there.
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971021
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Pitch drying operation embarrassing
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Zafar Samdani
LAHORE, Oct 20: Few sights at a sports ground could be as ugly and
pathetic and as embarrassing for hosts as the pitch drying
operations in Sheikhupura on Friday last, the first day of
Pakistan's second cricket test against South Africa. But even worse
were possibly the causes creating that situation and utter
indifference of all who should have been concerned and ashamed.
The wicket got watered by nature as protective arrangements proved
woefully inadequate, inefficient and non-professional. Rain water
had seeped through the covers; their condition was obviously not
checked till the time for unfolding them. Even then the moth eaten
or rodden chewed state of the covers did not upset any one. Make
shift last moment measures, for which the locals distinguish
themselves in all fields, to plug holes and ensure that the pitch
was not affected, could have been undertaken. That too was not done
with the result that the start of the test was delayed by more than
five sessions.
The covers were not required all of a sudden. The test match in
Sheikhupura was scheduled months back. But it did not occur to
anyone to find out the quality of professional facilities available
at the venue though endless meetings must have been held to review
arrangements. The focus of such meetings is invariably or law and
order, sale of tickets, contracts for the sale of eatables and
permission to vendors to turn the stands in to the kind of sale
points that offer questionable food at bus stops for inter district
transport and of course comforts for spectators meriting VIP
treatment. Every city of Pakistan has its socially and politically
sensitive personalities. Officials of the administration head such
inventories. That the event was to be a test match between cricket
teams of Pakistan and another country was apparently
inconsequential to the organisers of the match and managers of the
sport.
In this attitude of misplaced priorities anything could happen. On
the current visit of the South African cricket team, one test
centre had already produced unpleasant scenes. In the first test at
Rawalpindi, entry was made free at one point to ensure a good
gathering for the royal visitors from England. That caused a baton
charge on a segment of the spectators. Covers for the pitch had
proved problematic in Rawalpindi too. Earlier, during the visit of
India's cricket team to Pakistan for a three-match series of one
dayers, stone throwing incidents had marred the proceedings at
Karachi while the last encounter in Lahore produced, besides
thrilling cricket, almost unprecedented mismanagement which saw
ticket holders lose out to free loaders, present in all stands,
courtesy the police. The quality of professional facilities did not
come under pressure and was hence not exposed. It is however
doubtful if Hyderabad had come out unscathed if a demand was made
on the management. Karachi and Lahore may have survived a challenge
because they are major centres of cricket and consequently better
organised. Even so, it is a question if these centres could be
favourably compared with major grounds in other cricket playing
countries.
More regrettable is the aftermath of the clumsy handling of the
situation in Sheikhupura. Pakistan Cricket Board (PCB) does not
regard itself responsible because the ground is not under its
control. But are professional facilities, at least reviewing their
availability and quality, also outside PEB's jurisdiction? The
district administration in Sheikhupura can not be treated as
qualified for managing such matters but should it not have asked
PCB to extend a helping professional hand? PCB may not have
administrative control over grounds but pitches are prepared under
its supervision; during test matches, they could be maintained by
the Board too.
The sum total is that every one has slipped. But at a time when the
cacophony of accountability has reached a deafening level no one
seems to be accountable for the terrible mess at Sheikhupura. The
games which where played there was neither accountability nor
cricket; they were passing the buck and sweeping things under the
rug, in this case, under the covers. But the cover had holes and
caused seepage.
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971021
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Nawaz Sharif summons UBL chief, SEVP
-------------------------------------------------------------------
Sports Reporter
KARACHI, Oct 20: Prime Minister Nawaz Sharif has summoned United
Bank President, Zubair Soomro, and Senior Executive Vice President,
Khalid A Sherwani, to Islamabad.
Sources added that Soomro and Sherwani, a former UBL chief, were
due to call on Nawaz Sharif anytime Monday. However, the sources
were unaware of the agenda of the meeting.
Nevertheless, it is anticipated that the crucial meeting concerns
to the sacking of 7,500 employees, including 13 cricketers and four
hockey players.
Amongst the 13 cricketers is Waqar Younis who three years ago was
given a state award for his meritorious services for the country
and promotion of the game.
Besides Younis, also sacked are Tauseef Ahmad (bank's team captain
who has taken 99 Test wickets), Inzamamul Haq (who has scored more
than 2,500 runs in Tests and 3,500 runs in one-day internationals),
and Mushtaq Ahmad (who has 120 Test wickets and more than 100
wickets in one-dayers).
Former paceman Salim Jaffar, discarded Basit Ali, new Test cap
Mohammad Ramazan were also fired by the bank on the grounds that
they were either appointed after Oct 1, 1991 or were given
promotions out-of-turn.
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971024
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Jahangir Khan sad on sacking of sportsmen
-------------------------------------------------------------------
Sports Reporter
KARACHI, Oct 23: Squash legend Jahangir Khan, the record ten-time
winner of the British Open and six times former world champion,
today expressed his great concern and disappointment over the
termination of services of World-fame sportsmen who brought honour
and glory for Pakistan.
Talking to Dawn, Jahangir Khan stated that termination of services
of Pakistan's world -renowned cricketers such as Waqar Younis,
Inzamamul Haq, Mushtaq Ahmed, Basit Ali and good number other
emerging and potential test cricketers would have a negative effect
on our national sports. There is a general apprehension among the
sportsmen and also among the sportswomen, serving in various
government and other organisations, that they might be awaiting the
same fate as the cricketers.
The former world champion said that he was sad at the dismissal of
the who have rendered tremendous services to Pakistan's sports. It
was a very unkind act by those who with a stroke of pen did away
with the services of Pakistan sports heros, stated the Khan.
Terrmination of sportsmen, in the name of downsizing, is not the
solution of the problem, he stressed. There is a way to handle the
issue, particularly of the sportsmen, who have given their best for
the honour of the country. While millions of people in Pakistan and
outside the country had watched them in action.
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971024
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Wasim Akram serves notice on Pak-Suzuki
-------------------------------------------------------------------
Faraz Hashmi
ISLAMABAD, Oct 23: Former Pakistan cricket captain Wasim Akram on
Thursday served a legal notice on Pak Suzuki Motors asking the firm
to pay Rs. 50 million for "illegally" using his name.
"Our client is astonished and shocked to note that your company has
promoted its corporate name and products by illegally using the
picture of our client's world famous bowling action," Barrister
Kamaluddin Azfar stated in the legal notice served on behalf of
Wasim Akram.
Life-size pictures of Wasim Akram are displayed in prominent
accredited showrooms of Pak Suzuki Motors throughout Karachi and
elsewhere, he said adding that this illegal action was in full
concurrence of Pak Suzuki to the detriment of his client.
"Our client is one of the world's top few sportsmen and is
recognized to be one of all-time great allrounders in the game of
cricket," Mr. Azfar said.
Mr. Azfar pointed out that cricket was one of the most popular
games in Pakistan, United Kingdom, Australia, India, New Zealand,
West Indies, Sri Lanka, Zimbabwe, Kenya, Hong Kong, Canada and
Bangladesh and as a cricket star Wasim Akram was watched by
millions on television in international matches throughout the
world.
"Apart from being a cricket professional, our client's name and
image is associated with the promotion of goods, services and
corporate images," said the notice.
"Our client is the most sought-after sportsman for the promotion of
corporate and produce huge promotion throughout the world. Among
the companies and the products which have been promoted with the
consent of our client are: Pepsi-Cola, British Telecom, ANZ
Grindlays Bank, PIA, Paktel and other multinational and national
corporate entities," he added.
Mr. Azfar called upon the company either to pay Rs. 50 million
within seven days as compensation or prepare to face a suit for
recovery of damages.
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971024
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German coach to train soccer players
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Sports Correspondent
LAHORE, Oct 23: The Pakistan Football Federation (PFF) is making
arrangement to hire a German soccer coach to train the National
team. This was stated by M.N. Jehan, chief selector, PFF here on
Thursday.
The standard of football has witnessed a steady decline in Pakistan
since the Dhaka fall in 1971. This was stated by the (PFF) chief
selector M N Jehan while talking to Dawn on Thursday.
M N Jehan who was also the captain of the Pakistan team in 60s said
that like Calcutta, Dhaka had been awarding lucrative cash prizes
to the footballers. But, after the debacle, the Pakistani players
lost the opportunity which resulted in horrible decline of standard
of the game in Pakistan.
He said in 60s Pakistan was among the top football nations of Asia.
Pakistan had also played the final of the Asian championship in
1965 but lost it to Japan, he said.
With the passage of time, Pakistan lost its ranking due to poor
planning and insufficient incentives for footballers, while the
other Asian countries continued their struggle and now they were
far ahead of Pakistan, he said.
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971025
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Pakistan-India hockey series being finalised
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Sports Reporter
KARACHI, Oct 24: Col (Rtd) Mudassar Asghar, Secretary of the
Pakistan Hockey Federation, said here today after Islamabad s no
objection to the Pakistan -India test series eight matches are to
played next year from Feb 3.
Taking to mediamen here this afternoon, at the Hockey Club Col (Retd)
Mudassar Asghar, who arrived today from Lahore to oversee
the arrangements of the National Women Hockey Championship, stated
that PHF has already invited the Indian Hockey Federation Secretary
Jothi Kumar in the third week of next month.
The coming series, to be held after a lapse of ten years , would be
step forward towards the revival of the hockey series between
Pakistan and India. It would be of immense benefit to both the
countries, he stressed.
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