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DAWN WIRE SERVICE
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Week Ending : 28 June 1997 Issue : 03/26
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Action taken to protect national interests
US had warned Pakistan of sanctions
Govt contemplating litigation to get F-16s or refund
New Delhi agrees to discuss Kashmir
Pakistan can counter missile threat: Qadeer
SC asks govt to clarify function of ISI
Govt. decides to disband FIA
Killings to be probed by judicial commission
Atta coupon scheme from next month
Whitening of black money Incentive not lucrative
No loadshedding after July 15: Nisar
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Too many lucrative options for tax evaders
Is Pakistan in for economic colonization?
Defence commitments accentuate debt burden
A budget that lacks something
Govt shelves Keti Bunder power project
CBR tax computerization to be handed over to MNCs
Loadshedding leads to suspension of morning session
Investors not ready to take risks on law, order rumours
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The missing chapter Ardeshir Cowasjee
The inquisition Mazdak
Bypassing the law of extradition Khalid Jawed Khan
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Haroon appointed senior team coach for three years
Aamir Sohail to be dropped on 'poor' past performance?
Recent setbacks impair Pakistan's prospects
Handicaps in hockey development at home
Is Cairo defeat a warning to Jansher Khan?
Pakistan to host ninth SAF Games in 2001
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970623
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Action taken to protect national interests
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Staff Correspondent
ISLAMABAD, June 22: The prime minister's adviser for information and
culture, Mushahid Hussain Sayed, said that the Kansi affair was a sensitive
one and cautioned against exploiting it for political motives.
In a briefing on the arrest of Aimal Kansi, he told reporters that
Pakistan's priorities were very clear. "We will not give protection to any
person said to be engaged in terrorism since this can be only hurting the
interests of Pakistan."
The PM's adviser described Aimal Kansi's case as that of a fugitive wanted
for a criminal act in a "friendly country". Mushahid made it clear that
Kansi was wanted for the killing of two employees of the CIA in Washington
in Jan 1993. Since then, he said, he was on the run as a fugitive from
justice and he was said to have taken refuge in either Afghanistan or
Pakistan.
He said during the last four years, several raids were conducted to arrest
Kansi but he had managed to escape. "Given this context, Pakistan had no
responsibility either for his actions in the United States or for providing
him any sort of protection against the law," he said.
Mushahid Hussain said there was no question of Kansi being some sort of a
hero. "He is simply a fugitive from justice, wanted for a crime that he is
alleged to have committed in the United States." He said those who talked
of national honor were quiet when in similar circumstances, Ramzi Yousif
was picked up by the United States or when Benazir Bhutto, as prime
minister, admitted providing assistance to India in suppressing the Sikh
insurgency, in her interview to BBC. The adviser said on issues such as
terrorism, Pakistan could not operate in isolation. The government, he
said, had to promote and protect the national interest and in this regard,
its priorities were very clear.
Mushahid emphasized that Pakistan "cannot harbor or protect an alleged
terrorist since its primary commitment is to protect all its law-abiding
citizens and ensure that it can pursue policies that effectively promote,
protect and project the cause of the people of the occupied Jammu and
Kashmir."
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970623
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US had warned Pakistan of sanctions
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Masood Haider
NEW YORK, June 22: Ultimately it was the threat of broad-based
international sanctions against Pakistan by the United States, which forced
the Pakistan government to allow FBI and CIA agents to arrest and whisk
away Mir Aimal Kansi to America, circumventing the extradition treaty
between the two countries, highly informed sources here told Dawn.
The sources say these sanctions would have affected, among other things,
all trade with Pakistan and the loans of the donor agencies like the
International Monetary Fund, World Bank, etc, under the stipulation of
international terrorism act signed by president Clinton in 1995.
If the international terrorism act was invoked against Pakistan, it would
have ended up putting the country on State Department's list of states
sponsoring terrorism and the country would have been equated with Iran,
Sudan and Libya. This stipulation would have also halted all trade with
Pakistan and all loan and trade agreements would have been reviewed.
Four days after Kansi's arrest, and arraignment at a court in Fairfax
Virginia, details of the so-called "extraordinary diplomatic agreement"
between the United States and Pakistan-which eased Kansi's arrest and his
extradition without due process-still remain hidden. Officials in White
House, State Department and the Justice Department refused to divulge any
details about any "diplomatic agreement" when contacted by Dawn.
The Washington Post was told by Clinton administration officials that "to
facilitate Kansi's arrest and return to the United States," the State
Department negotiated "an extraordinary diplomatic agreement" with another
country. The officials insisted that the terms of agreement must remain
secret to facilitate "future law enforcement operations." "Although the
Clinton administration officials refused to name the so-called another
country," Post report said "all indications point to Pakistan."
Some sources here say that the State Department, under orders from
president Clinton, who was informed of the operation on an hourly basis at
times, had worked out a deal with Pakistan government and that prime
minister Nawaz Sharif eventually gave the go-ahead.
When Dawn asked the Pakistan ambassador in Washington, Riaz Khokhar, to
discuss the so-called "diplomatic agreement" which helped the Americans to
circumvent the extradition treaty between the two countries, he said, "I
don't know anything about this agreement. Why don't you ask the State
Department." "We have no idea here. Perhaps Islamabad knows. I cannot talk
about this. Nothing was handled here." He added.
Asked to comment on the extradition treaty, ambassador insisted that he
would not be able to make any comments.
Meanwhile, sources told Dawn that when Senator Arlen Spector, chairman of
the senate intelligence committee, wrote to president Clinton on Feb. 22,
1995, urging him to classify Kansi as an "international terrorist" and
increase the reward for information leading to his arrest to $2 million,
the international terrorist act was invoked.
Senator Spector, the sources said, also wrote to the then prime minister
Bhutto asking for Pakistan's help in apprehending Kansi.
Benazir Bhutto, in fact, obliged the American government during her tenure
by facilitating extradition of Ramzi Ahmed Yousef, the "mastermind" behind
the World Trade Centre bombing. Yousef, who was arrested at an Islamabad
hotel, was on FBI's top ten wanted list-like Kansi.
When the break in the Aimal Kansi case came, the US intelligence agencies
enlisted the help of Pakistan's intelligence agencies and commandos to
carry out the operation.
After browbeating the media for a day, the law enforcement officials here,
in Washington, admitted that Mir Aimal Kansi was arrested from Hotel
Shalimar, in Dera Ghazi Khan, on June 17, whisked away in a
four-wheel-drive to an Islamabad airport strip controlled by Pakistan Air
Force and was flown to the Dulles International Airport in Washington DC.
The officials also disclosed that on board the flight, Kansi-who was very
chatty-agreed to sign a confession admitting killing two CIA agents and
wounding three others. He also agreed that it was his photograph which had
appeared on the FBI wanted poster.
Although, the prospective defence attorneys, to be appointed for Kansi on
June 27, say that they believe Kansi's confession was illegal under
American law, several experts here are of the opinion that, after legal
wrangling, his confession will be admitted by the Fairfax court. "He has to
get a powerful lawyer who can force the proceedings to another location and
make the court throw out the confession taken aboard the plane, otherwise,
Kansi is doomed for sure," said a legal expert here.
As a matter of fact, the Virginia state's attorneys are furious that the
report about Kansi's confession was leaked out to the press by some
law-enforcement agents. They believe that Kansi's attorneys will use this
information to ask the court to disregard the confession.
While the American law, as it is, will be fully exploited by the attorneys
for Kansi here, but circumventing of the international law by the United
States in its eagerness to send a message to the "terrorists" the world
over has not been questioned.
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970628
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Govt contemplating litigation to get F-16s or refund
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Our Correspondent
ISLAMABAD, June 27: Foreign Minister Gohar Ayub Khan told the Senate on
Friday the government was examining the possibility of taking legal action
to seek the delivery of the F-16s or in lieu thereof the release of money
before the statute of limitation expires in 1999.
The foreign minister said the government had taken up the issue of the F-16
aircraft with the US government at meetings both in Washington and
Islamabad. He said he had raised the issue with the US secretary of state,
the national security adviser and the under secretary of state during his
recent visit to Washington. "Our position is that the United States must
either deliver the aircraft to Pakistan or refund the money paid by Pakistan."
Gohar Ayub said the US administration's position was that legislation
prohibited the delivery of the aircraft. He said the Americans had,
however, promised to find a third country to sell the F-16s. He said
Pakistan would continue to pursue the issue at the highest level.
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970624
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New Delhi agrees to discuss Kashmir
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Hasan Akhtar
ISLAMABAD, June 23: Pakistan and India agreed to continue dialogue on "all
outstanding issues", including Kashmir, and "to prevent hostile propaganda
and provocative actions against each other". They also set an eight-point
agenda for future talks and decided to establish working groups "to address
all the issues in an integrated manner".
A joint statement issued following three days of intensive talks said the
foreign secretaries of the two countries would themselves be dealing with
the issues concerning peace and security, confidence-building measures
(CBMs) and Jammu and Kashmir, besides coordinating and monitoring the
progress of working groups. The statement listed peace and security, CBMs
and Jammu and Kashmir as the priority issues.
The spokesman for the talks, Khalid Saleem, told the news conference that
the two foreign secretaries had preliminary exchange of views on the
composition of proposed working groups. The spokesman said the schedule for
the meetings of the proposed working groups would be finalized later.
Asked whether the foreign secretaries had discussed liberalization of visas
for traveler's between the two countries, the spokesman said they did
discuss the issue and decided to hold further consultations with their
governments. He hoped that a decision in this regard would be forthcoming.
The next round of talks between the foreign secretaries would be held in
New Delhi in September during which they would review the progress on the
implementation of the decisions taken at Islamabad meeting.
Indian Foreign Secretary Salman Haider referring to the recent talks said:
"In our view it provides the basis for a comprehensive, constructive and
sustained dialogue" in pursuance of the process that was initiated in New
Delhi in March last when the two foreign secretaries had their first round
of talks from March 28 to 31. "The purpose of the dialogue is to establish
trust, friendship and cooperative relationship between the two neighboring
states", he added.
Pakistan's Foreign Secretary Shamshad Ahmed said: "We have successfully
completed the first stage of the task that was entrusted to us by our
respective prime ministers to lay down a mechanism for establishing
friendly and cooperative relationship". But he reminded "there is a history
of outstanding problems", and added "it is for this that today we have
taken a very positive step." He quoted a popular verse in Urdu Khulenge
Pardahai Bam-o-dar Ahista Ahista smilingly urging the inquisitive newsmen
to hold on for the present.
Responding to questions, spokesman Khalid Saleem said there was no deadline
for the working groups to complete their assigned tasks. The composition of
the working groups was under consideration of the foreign secretaries and
presently only officials and experts would be associated with the groups.
When asked whether a proposal to pull out troops from held Kashmir was
discussed, the Indian foreign secretary replied in the negative.
The joint statement which sums up the outcome of intensive talks between
the two foreign secretaries stated they had agreed "to address all
outstanding issues of concern to both sides.
The issues agreed to be "addressed" were in the following order: a) Peace
and security, including CBMs; b) Jammu and Kashmir; c) Siachen; d) Wullar
Barrage project /Tulbul navigation project; e) Sir Creek; f) Terrorism and
drug-trafficking; g) Economic and commercial cooperation; and h) Promotion
of friendly exchanges in various fields. Indian Foreign Secretary Salman
Haider said Afghan issue did not figure at the talks.
The foreign secretaries also decided that detained Pakistani and Indian
fishermen and their vessels would be released by both the countries by July
15 this year. The official spokesman said both sides had also agreed to
swap civilians detained after crossing the borders illegally on a date to
be fixed later.
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970622
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Pakistan can counter missile threat: Qadeer
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Staff Correspondent
ABBOTTABAD, June 21: Dr. Abdul Qadeer Khan, Pakistan's eminent scientist,
has reassured the nation that Pakistan is well prepared to respond to any
challenge posed to its security by short, medium and long-range missile
system that has been or may be developed by India. He was referring to
reports about the deployment of Prithivi missiles near Pakistan's border.
Speaking as chief guest at a function organized by the district bar
association, Dr. Khan held out an assurance that scientists in Pakistan
were fully aware of their responsibilities. He said a missile factory would
soon be completed near Khanpur, where most modern facilities in the form of
sophisticated equipment would be provided to scientists engaged in making
defense equipment.
Continuing, Dr. Khan said: "The Kahuta project is a symbol of our national
solidarity. A team of highly qualified and devoted scientists is engaged
not only in putting Pakistan on the nuclear map but also in keeping a
watchful eye on borders of the country to safeguard it against all sorts of
mischievous designs". He said Pakistan's products like anti-aircraft
missiles, anti-tank missiles and guided missiles had forced India to remain
within its limits at Siachen.
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970627
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SC asks govt to clarify function of ISI
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Our Correspondent
ISLAMABAD, June 26: The Supreme Court said on Thursday that the government
must lay down parameters for the working of the ISI's political cell if it
insisted on continuing the cell, created in 1975.
Two-member bench, comprising Justice Saiduzzaman Siddiqui and Justice
Bashir Jehangiri, asked the attorney-general to make a "positive" statement
whether the government intended to keep the ISI's political cell intact.
The court observed that prima facie the operations of the ISI's political
cell were in conflict with Article 17 of the Constitution.
The court, however, made it abundantly clear that if the government made a
"categorical" statement that no such activity was carried out by the cell,
it (the court) would definitely look into the matter.
This case had originated from the letter of Air Marshal Asghar Khan which
he had sent to the chief justice for appropriate action after reading the
statements of Gen Naseerullah Khan Babar. Gen Babar had informed the
National Assembly that the ISI had collected Rs140 million from Habib Bank
and distributed the money among various politicians before the 1990 election.
Gen Aslam Beg, who on the last hearing on June 16 had asked the court to
order the closure of the political cell of the ISI, on Thursday again
repeated his prayer. He said it would be in the interest of the people of
Pakistan that intelligence agencies were not allowed to interfere in politics.
Justice Saiduzzaman observed if the ISI had to do politics, what was the
need of having political parties. He observed further that it was
understandable that an intelligence agency was asked to help control the
law and situation, but not beyond that.
Justice Siddiqui observed if the government took the position that the
ISI's political cell would remain operative, the court would have to fix
its parameters.
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970626
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Govt. decides to disband FIA
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Ihtasham ul Haque
ISLAMABAD, June 25: The government has decided, to disband the Federal
Investigation Agency(FIA), and create a new 'white police force' to
investigate white-collar crimes in the country.
Informed sources told Dawn that Interior Minister Chauhdry Shujaat Hussain
had mooted the idea of disbanding the FIA as it was only harassing and
torturing people instead of investigating sophisticated financial crimes.
The establishment of 'white police force' could take six months to one year
because of tight budgetary position. They said the FIA had not been helpful
even in any single case in finding out sophisticated corruption. But the
agency had succeeded in harassing and extorting money from some officials
who had worked with the previous government, they added.
In the absence of any' white police force ', he said, Senator Saifur
Rehman, chairman of the accountability cell at the prime minister's
secretariat, was doing a good job of investigating financial crimes. Mr.
Anwar did not believe that Mr. Saifur Rehman was victimizing his political
opponents and said: "Bring to me a single case of victimization and I would
immediately ask for withdrawing it".
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970628
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Killings to be probed by judicial commission
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Raja Zulfikar
ISLAMABAD, June 27: Prime Minister Nawaz Sharif on Friday removed a major
irritant affecting government-MQM relations when he informed an MQM
delegation that the government had established a judicial commission to
probe "extra-judicial killings" in Karachi.
"The copy of the notification will be given to you soon," the prime
minister assured the MQM delegation which called on him at his Parliament
House chambers. He dismissed as baseless the rumours of governor's rule in
Sindh commenting, "There is no chance whatsoever of imposition of
governor's rule in Sindh."
A senior government official confirmed to Dawn on Friday that a
notification had been issued to formalize the setting up of the proposed
judicial commission. The three-member commission will be headed by a
sitting judge of the supreme court, Justice Munawwar Ahmed Mirza; a retired
judge of the supreme court, Justice (retd) Wali Mohammad; and a retired
high court judge, Justice (retd) G H Malik.
The judicial commission will prepare a report within four months and record
its findings on the "extra-judicial killings" in Karachi.
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970625
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Atta coupon scheme from next month
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Mahmood Zaman
LAHORE, June 24: The federal government has assigned the duty of
implementing its 'atta coupon' scheme under which 400,000 families living
below the poverty line will get monetary assistance for purchase of
essential commodities.
Effective from July 1, the scheme will benefit families whose monthly
earnings fall short of Rs1,500. Monthly assistance of Rs200 has been
planned for these families whose selection will be made with the help of
tehsil Khidmat-i-Khalq committees, being reconstituted by the Pakistan
Baitul Maal.
The scheme was announced by Prime Minister Nawaz Sharif in his nationwide
speech on June 11 and an amount of Rs250 million was allocated in the
1997-98 federal budget.
Later, a committee under the chairmanship of MNA Lt Gen (retd) Abdul Majeed
Malik, was formed to work out its details and rules. The Pakistan Baitul
Maal was also asked to submit a scheme, based on its experience of issuing
subsidy under the foodstamp scheme and then the food subsidy scheme. The
first scheme was merged into the second and the food subsidy scheme has now
been merged into "atta coupon" scheme. But all these schemes had a similar
qualification of beneficiaries and mode of their selection.
According to details, 'atta' coupons worth Rs200 will be deposited in the
nearest post office every month where a saving account in the name of each
beneficiary will be opened. Each beneficiary will get a registration number
against which the amount would be withdrawn for the purchase wheat flour,
sugar, ghee, pulses and milk.
Applications will be received on prescribed forms by tehsil and taulka
Khidmat-i-Khalq committees who will recommend to similar committees at
district headquarters lists of people to benefit from the scheme. The
criteria of selection of beneficiaries is that a family's monthly income is
below Rs1,500 and its head has no regular source of income. Orphans,
widows, destitute people and disabled have also been qualified.
The scheme involves a financial outlay of Rs1 billion and its distribution
will be made on the basis of population in the four provinces, Azad
Kashmir, Federally Administered Tribal Areas and Northern Areas. The Punjab
would get Rs480 million for about 200,000 families. The share of Sindh for
its 92,000 families is RRs221 million. The NWFP is to receive Rs125 million
for 52,000 families and Balochistan Rs67 million for 140,000 families.
Shares of the provinces have been sliced to extend the scheme to Azad
Kashmir, FATA and Northern Areas. The share of Islamabad has been fixed at
Rs67 million.
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970625
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Whitening of black money Incentive not lucrative
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Nasir Jamal
LAHORE, June 24: The government scheme to allow tax evaders to whiten their
black money by paying 7.5 per cent of their total assets may not produce
the desirable results, say experts.
"The implementation of the scheme is subject to cooperation by the private
sector that does not perceive the incentive lucrative enough to bring out
the hidden wealth," a senior research analyst at the Lahore Chamber of
Commerce and Industry (LCC&I), who asked not to be named, said on Tuesday.
The incentive was announced by the Federal Finance Minister, Sartaj Aziz
for new tax payers in his budget speech on June 13. However, the minister
announced extension of the scheme to include the old tax payers as well in
his concluding speech on the budget.
Aziz's plan to induce the tax evaders to disclose their hidden riches is
fifth attempt made by successive governments since Ayub Khan's period. The
last time the government offered such a scheme was in mid 1980's when the
then Finance Minister, Dr Mahbub-ul-Haq floated special bonds to woo the
tax evaders into whitening their black money.
The private estimates of Pakistan's black economy vary from 41 per cent to
51 per cent of the country's Rs 2870 billion GDP.
"The government should have announced some extra benefits like issuing
special passports to them," said the analyst, "and giving them a higher
interest rate on foreign exchange they bring." Said he: "Unless the
government announces some more incentives for the holders of black money,
its efforts to bring out black money will not produce any result because we
don't have a mechanism to force anybody to show his hidden wealth."
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970628
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No loadshedding after July 15: Nisar
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Bureau Report
ISLAMABAD, June 27: Minister for water and power, Chauhdry Nisar Ali Khan,
assured the National Assembly here on Friday that there would not be any
loadshedding after July 15.
"We have been forced to have some loadshedding because of the acute
shortage of water in Tarbela and Mangla dams," he further stated.
He said that there was a shortage of 1400 to 1500MW and one of the reasons
was that 250MW to 400MW of electricity was being additionally provided to
the Karachi Electric Supply Corporation (KESC). "Moreover, there is a
reduction in the generation of 500MW to 600MW of electricity due to
shortage of waters in the reservoirs of Mangla and Tarbela dams", he said.
However, the minister assured the members that there would not be
unspecified loadshedding and that the loadshedding timings were being reduced.
Chauhdry Nisar said during next six months period a massive programme was
being started for the renovation of transmission and distribution system.
"We will be undertaking formidable reshuffling in the WAPDA's hierarchy",
Nisar said, who also holds the additional portfolio of ministry of petroleum.
He stressed the need for spending more on maintenance rather than on
issuing new connections. "I would urge the authorities to allocate more
funds for maintenance of services instead of offering electricity to more
and more villages", he said.
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970623
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Too many lucrative options for tax evaders
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Sultan Ahmed
WILL the apparently attractive 'amnesty' offer of the government to bring
out hidden or untaxed wealth of the rich, which is the fifth in the history
of Pakistan, produce substantial results?
Finance Minister Sartaj Aziz said, while presenting the offer to whiten the
tax-evaded money by paying 7.5 per of the value of that he was responding
to the demand of trade and industry for such an amnesty, but that did not
apply to the existing tax payers.
The minister is not particularly enthusiastic about the scheme as only the
first three of such amnesties offered by Ayub Khan following the first
martial law rule in 1958 when 55,000 individuals came up with disclosures
of Rs 1.35 billion, which was a large sum in those days, after paying 31 to
35 percent tax was a success.
Now, however the demand is that he reduce the tax payable from 7.5 percent
to 3 or 4 percent and the scheme be made applicable to the existing tax
payers as well who might have under-declared their wealth and income earlier.
Poor response
We have a history of poor response to such amnesty after it was announced
each time following too many demands from the public.
The second amnesty under Gen Yahya's martial law rule had a very poor
response and the response to the scheme announced in the days of Mr.
Zulfikar Ali Bhutto as Prime Minister was just as bad, as by the then
holders of hidden wealth had become both cocky and smart.
Dr. Mahbubul Haq as Finance Minister came up with his whitener bonds
officially known as the Special National Fund Bonds in July 1995 which were
issued at Rs 90 and redeemable at Rs 100 after two years.
The bonds were free from income tax, wealth tax and zakat and the banks
were ready to offer 90 percent of the amount at low interest to buy the
bonds on behalf of persons who wanted to whiten their money. Here was a
clear case of those with hidden wealth not paying taxes to whiten that, but
the banks paying them a profit tax-free to do that.
Dr. Haq said his intent was to bring out the large hidden money, engage it
in legitimate and open activities so that proper taxes would be paid
thereafter on the profits of such transactions. At the end of the scheme,
Dr. Haq said that Rs 13.7 billion was received from the banks through that
scheme and the cash receipts were Rs 2.6 billion. It was a pretty messy
scheme as the holders of hidden wealth instead of paying the cash needed to
buy the bonds brought carpets and other assets to the banks as collateral
for that.
Now, Indian Finance Minister P. Chidambaram, has also come up with a
similar amnesty offer after overcoming the ethical objections, which is
described by Indian financial experts as "simple, elegant and free from
significant ambiguities." And surprisingly the strongest supporter of the
scheme is the Marxist Chief Minister Jyoti Basu of West Bengal.
He is interested in the scheme as not only the large hidden wealth of
Calcutta will come in the open and be engaged in legitimate industrial and
commercial activities which he needs for the people, but also as 77.5 per
cent of the revenues from such declarations will go to the state
governments. So the state governments are cooperating in making a success
of the scheme.
It has also been stated that every Indian finance minister except Yashwant
Sinha and Jaswant Singh, who held the office too briefly, had fallen for
the lure of the amnesty despite its often disappointing results. But the
scheme has been refined from time to time to avoid past mistakes or lapses.
Mr. Sartaj Aziz cannot respond to the demand to enable the existing tax
payers to enjoy the benefit of amnesty as instead of paying the maximum 20
per cent of the tax they have to pay following its reduction by 50 per
cent, during the assessment year 1997-98, they may just pay 7.5 per cent of
their total assets and get away with the loot merrily.
Hence the benefit of the amnesty is confined to the old fiscal sinners who
paid nothing, and not to the half-sinners who have been paying half the
taxes or even less and now want to whiten the balance by paying simply 7.5
percent tax on their hidden assets.
Likely failure
If the new amnesty is a failure, the government would have itself to blame.
It has not only several savings schemes where their hidden assets can be
safely and profitably invested but now it also offers the foreign exchange
option as well, particularly through the Foreign Exchange Bearer Bonds
(FEBC) which they can buy in unlimited quantities, get a return of 14.5 per
cent annually if they hold them for sometime and then cash it.
Certificates of cashing absolves you of the need to pay any tax as they
whiten the amount automatically. And FEBC certificates have been in use as
whitener bonds for the last 12 years. There are of course plenty of other
bearer bonds through which tax-evaded wealth could be used, including prize
bonds whose denominations have risen from Rs 5 and Rs 10 to Rs 25,000.
Since 1991, when the foreign Exchange Reforms came, foreign exchange
deposits are permitted for resident Pakistanis along with overseas
Pakistanis in our banks and the total deposits have risen to $8.5 billion.
If until now such depositors got an interest rate of 6 to 6.5 per cent
along with exemption from income and wealth taxes and zakat, the Prime
Minister Nawaz Sharif's National Debt Reduction Fund to mobilize foreign
exchange raised that reward to 7.5 percent each for two years and to 9
percent for five-year deposits
These are, all no-questions-asked deposits with handsome returns in the
years when the rupee gets heavily devalued as in recent years, and the
depositors feel both secure and well- rewarded. Hence the $8.5 billion
deposits. So those who hold such deposits may not be inclined to pay 7.5
percent to whiten them formally.
Another deterrent to persons with hidden wealth wanting to avail of the new
amnesty is that the cost of the FEBC has now come down to 3 percent from 7
to 8 percent when the scheme came into operation.
While the President of the Pakistan Tax Payers' Association, Mr. Altaf
Hussain Jamal, demands reduction of the tax for amnesty from 7.5 percent to
3 or 4 percent and to include the current tax payers who evaded paying tax
on a part of their income or assets earlier, the President of the Karachi
Chamber of Commerce and Industry Shahzada Alam has suggested the existing
tax payers should be given exemption on the basis of paying 7.5 percent but
the finance ministers fears a lot of persons would show their current
income also as hidden and pay 7.5 percent tax and not the reduced 20
percent they would otherwise would have to pay.
Demands are also coming up that the maximum rate of wealth tax should be
reduced from 2.5 percent to 1.5 percent. But no such demand is being made
in respect of the uniform Zakat rate of 2.5 percent which is very unlike
the Wealth Tax which begins with half a per cent and rises by half a per
cent until it peaks at 2.5 percent.
Now one who receives a small amount as dividend from a company or from an
official bond has to pay 2.5 percent of the face value even if its current
market value is Rs 1 or Rs 2 instead of Rs 10.
The government is not thinking of the new amnesty as a revenue measure.
Instead, it wants the holders of hidden wealth to bring that out, employ
that in legitimate activities and pay the normal tax thereafter. Such funds
could be used for setting up of industries or legitimate trading instead of
being used for speculation, hoarding or market fixing or lending to
businessmen at high interest rates on a short-term basis.
The same considerations in the reverse stand in the way of holders of
untaxed wealth declaring it by paying 7.5 percent tax now, and regular
taxes from the use of such funds thereafter. But a major attraction for
such persons to declare their wealth is the maximum rate of personal
taxation has now come down to 20 percent from 38.5 percent, beginning with
5 percent instead of 10 at the bottom of ladder.
Today, thanks to the numerous instruments the government has come up with
to lure hidden wealth, the options are on the side of the old tax evader
and not the government. But, the government is using computers and other
tools to locate tax-evaders as well as tracking them down through the plots
of land, houses, cars, and telephones they own and the foreign trips they
make. However, while some of the old tax evaders may be ready to come out
and pay the 7.5 percent tax, those who have made vast sums through heroin,
gun-running, crime and massive corruption may not be ready to declare their
hidden assets in full and expose themselves.
They have not only their ill-gotten wealth to hide but also plenty of other
things, in fact a whole black or bloody past. May be, they will distribute
some of these assets among their relatives and get them whitened partially.
What is obvious is most of the holders of hidden wealth now feel sure they
can stay in the shadows for long, and have only to pay a small fee for that.
They derive comfort from the fact that their numbers are large and some
very influential persons are in their ranks, and they have strong political
pulls and bureaucratic leverage.
Tailpiece: The Finance Minister, Sartaj Aziz, has, winding up the general
discussion on the budget, announced that existing tax payers too could
avail of the amnesty for tax evaders by paying 7.5 percent of the hidden
income or wealth but that they should make the payment before September 30.
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970623
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Is Pakistan in for economic colonization?
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B.A. Malik
ACCORDING to Press reports, the World Bank is pressing WAPDA to appoint
Euroconsult of Holland, as Consultant for the National Drainage program
(NDP), although its bid price of $58 million is $21 million or about 60
percent higher than the project estimate. Another story speaks of a bid of
$68 million or 84 percent higher than the estimate.
This is too large a price to be accepted. Normally such a high price tag
would have reflected adversely on the eligibility of a consultant. Either
the consultant was incompetent to produce a reasonable cost estimate, or
the high price was motivated by some kind of vested interest.
In either case, the consultant would have been disqualified. On the
contrary to show any kind of favor or preference, much less to browbeat a
borrowing government to appoint a certain consultant, disregarding his high
bid price, would be against the institutional policy and practice of the
World Bank. Such an attitude would be tantamount to a colonial diktat
fraught with serious ramifications.
When the Bank agrees to finance a project, the money to be provided is not
a free grant but a loan to be paid back by the borrowing government with
interest.
The selection and appointment of consultants/contractors essentially rests
with the borrowing government according to an agreed procedure. The service
agreement would be between the government and the consultant to be signed
by the former through its designated agency, as WAPDA in this case, and not
by the Bank.
The standard procedures for selection of consultants require that proposals
from pre-qualified consultants be invited by the government in two
envelopes; one containing the technical proposal and the other the
financial proposal which must be duly sealed.
The technical competence of the consultants would be rated and a ranking
list drawn by the government agency on the basis of technical proposals.
The consultant ranked as number one would be invited for negotiations on
the basis of his financial proposal for negotiations.
If the financial proposal of the selected consultant is higher than the
estimated cost, then the bid price would be negotiated to bring it at par
or close to project estimate, failing which, the next consultant on the
ranking list would be invited for negotiations. If his financial proposal
appeared acceptable, the contract would be awarded to him, otherwise the
next on the list would be invited.
In the case under reference, however, the price difference of about 60 per
cent or $21 million (or 84 percent according to another story) above
estimated cost, is disproportionately so high that Europconsult could not
be entitled to the award of the Consultancy contract as ordered by the
Bank. The second or even the third consultant on the ranking list should
have been invited for negotiations. This does not appear to have been done.
Under the circumstances, issuance of the bank's directive, contrary to
policy and practice, presumably by an over-zealous staffer, could render it
suspect and may not escape the suspicion of a vested interest. No
democratic country, no matter how strapped financially, would and should
accept such dictation.
During this scribe's UNO assignments abroad, he noted that countries far
smaller and less developed than Pakistan, asserted their choice and
preferences boldly in national interest without accepting undue pressure or
dictation from loan/"aid" agencies.
Our government functionaries must realize that this is not Bakhshish but
our own money which has to be returned to the lender with interest. They
must assert the right to use it and to implement the proposed project
properly and most economically.
There is another bewildering aspect of the matter. We feel proud in
claiming that we possess the world's largest irrigation canal network
(including some of the largest irrigation works; designed, constructed,
operated and maintained by our engineers) evolved over the past 140 years.
It comprises some 70,000 Kms of canals and drains and 1.6 million Kms of
field channels, besides hundreds of huge hydraulic structures such as
barrages, headworks, syphons, dropfalls and bridges etc.
The channels and structures involved in the National Drainage Program are
comparatively minor and far less complex. There is absolutely no element of
technology transfer to oblige our government to involve highly expensive
foreign consultants. Why cannot our own engineers, whose knowledge and
experience no foreigner could match, be allowed to design and implement the
program.
The entire drainage program can easily be handled by our engineers far more
efficiently and at less than half the cost than through foreign
consultants, of where expatriate staff would cost 10 to 15 times more than
our top Pakistani engineers.
Why should Pakistan, in dire need of saving every penny to avoid additional
debt burden, not press the Bank to let her engineers and contractors
implement the NDP?
The country could thus save additional debt of at least Rs 16 billion (1995
cost) plus an enormous interest load. It would be nothing short of a
tragedy if the government did not act to save the country from additional
debt burden. The Prime Minister, may kindly intervene to prevent further
addition to our debt.
The handling of this project by Pakistani engineers should be acceptable
like the case of the vast drainage program in Egypt funded by the Bank
which has been designed, constructed and supervised by Egyptian engineers
and contractors.
To quote, "The Egyptian Public Authority for Drainage Projects (EPADP) ...
is responsible for implementing drainage works under the proposed and
previous IDA/Bank financed projects. EPADP is ... empowered to carry out
field investigations, planning design, procurement, construction, budgeting
and operation of project accounts ..." (World Bank - 1977).
Another disturbing Press report states that the NDP is to be presented to
the Bank by the Deputy-Chairman, Planning Commission, to qualify for $550
million assistance, the pre-requisite for which requires that all the four
provinces pass legislation to set up PIDAs (Provincial Irrigation and
Drainage Authority).
Camouflage
The PIDAs are a camouflage for privatization of our irrigation system. When
the Bank raised the issue of privatization of irrigation networks some time
back, it was vehemently opposed by all the provincial Irrigation
Departments, engineering institutions and professional engineers at large.
A couple of years back an over-zealous Bank staffer, ignorant of the
conceptual, technical and operational framework of our irrigation systems
and the illiterate, feudal-dominated, rural environment it operates in, is
said to have used some questionable approaches including a carrot and stick
approach to impose the idea under the deceptive garb of PIDAs.
If PIDAs were such a golden alternative superior than the existing
management of irrigation networks, why did the Bank not demand PIDAs in the
Punjab and Haryana States in India, possessing the same type of irrigation
system as Pakistan?
The potential agricultural production of the irrigation system is of the
order of 72 million tonnes annually including foodgrains (21 million
tonnes) and exportable crops and it provides employment to over 70 per cent
of the population.
It is the backbone of our economy. In fact, our irrigation system is our
life-support outfit, a vital national asset. It is not the personal fiefdom
of any ruler to jeopardize its safety, integrity and productivity by
succumbing to the idea of PIDAs carrying the tantalizing bait of a few
hundred million dollars loan offer.
It would take billions of dollars to restore/replace even a small part if
damaged and the present loan offer of $55 million is a pittance in the face
of a colossal consequent repair bill. Institutionally, there is nothing
wrong with the management structure of the system which has served
admirably for over a century given effective administration. However, there
definitely are problems stemming mainly from feudal interference in the
equitable distribution of irrigation supplies.
This does not mean radical surgery to warrant breakdown of the network.
Whatever the problems, they are manageable within our own means. We have a
time-tested system of irrigation. Pakistan could not have survived as a
sovereign, economically viable entity, without her irrigation network.
Our new 'colonizers', seem to be diehard operators bent upon destroying our
life-support systems under the garb of PIDAs, participatory management,
privatization or alleged insolvency. The previous government should not
have agreed to PIDAs without permitting a free debate amongst
professionals, farmers, politicians and in the Press. In this writer's
opinion, endorsed by hundreds of his colleagues, PIDAs are neither a remedy
for our problems nor free from the potential of causing irreparable damage
to our field networks and well-established management structure.
There should be open debate at the fora of irrigation engineers, farmers,
politicians and in the Press. The Bank's experts should be invited to
participate and convince our professionals about the legitimacy and
feasibility of PIDAs and show how there would be no risk factors which
could endanger safety and integrity of our irrigation network.
The matter should then be debated in the provincial assemblies and on the
floor of the Parliament before any kind of enactment for PIDAs were passed.
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970623
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Defence commitments accentuate debt burden
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Ihtasham ul Haque
THE budget planners had approached the defence authorities and the IMF
officials in Washington not to insist on increasing their shares in the
budget for 1997-98 but only the Pakistani forces chiefs obliged, while the
Fund expressed its inability to do so with the result that Pakistan would
now have to pay about Rs 96 billion as part of its foreign debt repayment
(amortization), out of a total of Rs 247 billion, kept aside for overall
debt-servicing plan.
The government had reportedly convinced the armed forces to face a
reduction of about 7 to 8 percent in real terms in their budget due to
pressing funding problems which they eventually accepted after lot of
persuasion. However, Pakistan could not succeed in convincing the IMF not
to insist on increased repayment. Insiders say that had the IMF been a
little considerate the government would have also convinced the other
lenders to accept less repayment during the next financial year. Officials
when contacted admitted that due to heavy local and foreign debt servicing
and the shortfall in revenue, the government had to scale down the budget
for social sectors specially education and health. Last year the PPP
government had given an increase of 3 percent for health and education
which has now been reduced to 1.5 percent. Hence, the biggest sufferer is
once again the common man who was increased benefits of health and primary
education in the next Fiscal.
Officials said that they could not take the risk of annoying its foreign
lenders who have promised an additional $600 to $800 million in loan.
However, in return it had to accept that there would not be any default.
Insiders said that prime minister Nawaz Sharif had held exclusive meetings
with the army chief and other important people and convinced them that the
situation was too bad to have a 10 percent usual increase in the defence
budget and that the forces should cooperate with him in this behalf.
The worst hit is the Public Sector Development Program (PSDP) which is
reduced from Rs 90 billion to Rs 85 billion. Interestingly, it happened for
the first time that the recommendations of the National Economic Council
(NEC) were flouted by the ministry of finance and the planning commission
when they reduced the size of the PSDP to Rs 85. The NEC is a
constitutional body and its recommendations could not be ignored but it
happened without any solid justification.
If we look at the annual allocations for next year we find The total outlay
of budget for 1997-98 is Rs.552.0 billion. This size is 10.4 per cent
higher than the budget estimates of Rs.500.2 billion for the year 1996-97.
The resource availability during 1997-98 has been estimated at Rs.487.4
billion as compared to Rs.480.42 billion in budget estimates 1996-97 which
indicates an increase of 1.5 percent. Net revenue receipts for 1997-98 have
been estimated at Rs.326.0 billion which indicate an increase of 1.6
percent over the budget estimates for 1996-97. The capital receipts (net)
for 1997-98 have been estimated at Rs.27.9 billion which indicate an
increase of 5 percent over budget estimates 1996-97. Receipts from external
resources in 1997-98 are estimated at Rs.129.5 billion. This shows an
increase of 26.5 percent over the budget estimates for 1996-97.
The overall expenditure during 1997-98 has been estimated at Rs.552.0
billion of which the current expenditure is Rs.461.9 billion and
development expenditure Rs.90.1 billion.
The share of current expenditure in the total budgetary outlay for 1997-98
is 83.7 per cent as compared to 79.1 per cent in 1996-97 budget. Defence
expenditure in 1997-98 budget is at Rs.134.0 billion as compared to
Rs.131.4 billion in 1996-97 indicating an increase of 2 percent. The
Provinces will receive Rs.124.2 billion during 1997-98. This amount is
lower by Rs.9 billion as compare to budget estimates 1996-97.
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970623
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A budget that lacks something
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M. B. Naqvi
THE budget that Mr. Sartaj Aziz presented is commonly regarded as good as
the circumstances permitted. There is no doubt that the circumstances are
about as bad as could be. Even so, there is a feeling that something is
amiss. What it is not easy to specify, though everyone should make the
effort to find out and assess it.
That no new taxes have been imposed is both pleasing for all and shows that
Mr. Aziz has learnt the lesson from recent history. This history teaches us
that if you go on imposing new taxes merely to balance your books in
circumstances where expenditures are beyond your control, the results are
frustrating indeed, as has been he experienced until 1996-97: tax payers
refuse to pay and the official coffers remain empty no matter how many
taxes are imposed.
Mr. Aziz has, therefore, refrained from imposing new taxes in the full
knowledge that it is no use imposing new taxes. He is lucky that the
voracious Islamabad establishment, and it seems also the international
money men have partially understood this simple fact. The IMF, therefore,
is said to be ready to take Pakistan on board its ESAF/EFF later in the
year - after adequately judging if the new government is trying hard
enough. It seems to have indicated that it will swallow its previous
insistence on a certain level of budget deficits and will let Pakistan in
even if the budget deficit in the still ongoing year (1996-97) turns out to
be 5 percent or more. This is a new openness to recognise necessity. The
previous government's economic team is justifiably bitter at the IMF gods.
Others will say better late than never.
The point is that Pakistan government's dilemma is that either it commits
Harakiri by cutting down on the two main expenditure items of debt
servicing and defence - and IMF itself will be among the killers of that
government along with others in the establishment - or it lets the budget
deficit soar on the basis of financing its expenditures by bank borrowings
left, right and center to keep the establishment in good humour. Down this
latter road, there is sure to be disaster as the IMF rightly insists. in
order to be disaster as IMF rightly insists on. That remains the position.
Let us see what Mr. Aziz has done.
He has basically lived in accordance with the norms approved by Pakistan's
establishment: he has spent as it demands, including never for a moment to
entertain the thought of seeking a debt rescheduling so as to please the
gods in Washington. His only concession to economic reality is (a) to adopt
the supply side economic doctrines that he knows is the favored faith of
the BWIs (Bretton Woods Institution) and (b) has, in this new 1997-98
Budget, imposed no new tax while actually cutting many old ones. Thus he
has pleased the business lobby too.
That brings one to the central assumption on which the whole edifice of
this Nawaz Sharif Budget stands: it is the touching faith in the good sense
and the sense of loyalty to Nawaz Sharif's philosophy of trusting the
business - as also the central tenet of supply side economics - that lower
taxes mean more savings, investments, more taxes collection and less need
for behavior taxation in future while in the meantime the economy picks up
and everything goes real well. Mr. Aziz has already promised steps to lower
interest rates and improvements in the banking practices to streamline one
key input availability. This assumption is the real foundation on which the
whole budget edifice stands. How well-founded this assumption is in today's
Pakistan remains to be seen by Budget time next year: in 1998.
One should not be hasty in judging; we should await the results of this
year's new Budget. There is one objection though from some observers of the
economic scene in Pakistan: This is that, damn the statistics given by Mr.
Aziz, inflation's impact on the situation is so insistent in the Here and
the Now that ignoring its can mean everything going out of control. This
prognosis is not based on the adverse judgment over the efficacy of the
supply side doctrines, through there is some scope for this too.
The basis for being hypochondriac over the present economic situation is
such that the ravages of inflation in the past are damaging that a level
has been reached when any further living beyond the nation's means can
bring catastrophe. This year's budget, for good or ill, is business as
usual: Islamabad will go on spending all it has been addicted to and go on
financing it by borrowings - and in this case the size of the borrowings
will depend upon the size of the revenue enhancement that takes place as a
result of the supply side measures; i.e. if the assumption proves to be
only partially valid the shortfall will have to be met with borrowings.
Thus the size of the borrowing that Mr. Aziz puts at roughly Rs. 55 billion
may turn out to be far more and with in the budget deficit percentage. If
the IMF and World Bank experts were right in 1995 and 1996 in expecting
catastrophe a few years down the line, out of this safe margin of a few
years, at least one year will have been largely wasted in which no
corrective action has been taken. That must be remembered while some people
celebrate the tax-free period.
None of this should be taken to mean that the writer thinks that more taxes
would have been right to appropriate. Not so. Taxation level, heaven knows,
is high enough for the common man and one stands for lowering it in so far
as the real common man is concerned. Mr. Aziz has certainly kept the level
of taxation on the common man where Mr. V.A. Jafarey had left off; there is
actually scope for reduction in these while certain others might be
increased insofar as they fall on the well-healed. Not that Mr. Aziz can
risk this. It is for the radical an idea that negates supply side assumptions.
Restrained praise for the Finance Minister is in order for two largely
symbolic actions: one is increasing the budget allocation for defense by
only 2 percent in 1997-98 while during the current 1996-97 years defense
authorities saved Rs. two to four billions out of their allocated budget.
This is really a cut by the hefty margin of the actual rate of inflation in
the last and the coming year. Gohar Ayub Khan can exploit it in Delhi and
taunt it for its constant raises in defense outlays.
The second action that should warm certain skeptical hearts is the passage
of agri-tax bill by the Punjab Assembly. It is in earnest that a few
billion rupees will be "donated" by the feudal of this land. This is
largely a ceremonial concession by the landed gentry; no realistic observer
will make the mistake to expect substantial sums coming Mr. Aziz's way. The
pleasure is over the principle being accepted. Some hopes can be
entertained that in future there might be, just might be, some government
that may realize, say 10 to 15 percent of the GDP's share of agricultural
incomes. That will be the day to celebrate.
Let no one run away with the impression that Mr. Aziz has become a
revolutionary; his "establishmentarian" heart is in the right, i.e.
establishment, place. His (federal) allocations for the social sector for
1997-98 is actually lower than the current year's especially if inflation
and other considerations are taken into account. This year's biggest jump
in outlays is in debt servicing item to nearly 200 billion rupees - that
is, if his own assumptions and expectations do not prove wrong or over
pitched. But that is what all Cassandras were afraid of. They all think
that debt-servicing is now leap-frogging. That is the whole point for being
agitated and frightened; Pakistan economy is thus in a dangerous phase: it
cannot bear too many new burdens.
Mr. Aziz's and his boss Mr. Sharif's place in history will find a glorious
mention provided they are vindicated by the economy. How can it do so? It
can do two or three things: it allows itself to be kickstarted by the
measures the two gentlemen have taken. The second thing will be when its
leaders, the big business, start paying their taxes honestly and stuff the
coffers as the expectation is. The third thing may be more unlikely but if
the agri-lords pay substantially in income taxes, the place of these two
politicians will be high enough. But let's remain more concerned with the
future of the economy. The spectre of insufficient revenue collection, low
growth rates in industry, high expenditure levels with utterly insufficient
investments in infrastructure, continues to haunt us all. The new budget is
a statement of hope.
Several other points need to be mentioned, mostly for the record. Although
banks have been asked to be more efficient by reducing their intermediation
charges and by reducing the mark up rates, not many hopes can be raised
about increasing the savings and investment levels thereby. The government
continues to pin its hopes on foreign investor's anxiety to invest in
Pakistan even if Pakistan's own rich do not.
One will also continue to insist that it is unrealistic to hope that
foreigners will substantially invest in an economy in which locals are not
investing sufficiently. One might as well mention that until the economy
managers do not encourage and enforce an austerity regime, real saving
beginning with domestic savings will not grow, thus creating a fundamental
hurdle in making investments. If these rates do not increase, hopes of
building physical and social infrastructures will remain illusory - and
with that many other expectations. Conversely, hope now rest on a true and
thoroughgoing austerity program which can start a good multiplier effect.
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970625
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Govt shelves Keti Bunder power project
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Our Correspondent
ISLAMABAD, June 24: Federal Minister for Water and Power Chaudhry Nisar Ali
Khan told the National Assembly on Tuesday that the government had decided
to cancel the Keti Bunder thermal power project, on the basis of a mutual
agreement, since no physical work on its site had been executed following
the signing of a memorandum of understanding in 1995.
The minister said although the MOU for the thermal power project had been
signed about two years back, work on the site had not been started.
The minister accused the previous government of harming national interests
by concluding agreements on power generation with foreign companies.
He told the house that, actually, work on the project was to be
accomplished in two phases. In the first phase, he said,1320 megawatt
electricity was to be generated by using indigenous coal. He said the idea
of using imported coal was in contravention of the original proposal. He
said the plan envisaged laying of 185 kilometres of transmission line from
Keti Bunder to Jamshoro.
The minister said if the cost of the transmission line was added to power
charges, which were already high , it would not have been possible for the
common man to use electricity.
He said that at current rates the cost of electricity came to 6.5 cents.
Adding to it the transmission cost, electricity would eventually cost a
consumer about 11 cents. Who would pay power charges at such an exorbitant
rate? he asked , and added :"That's why the government has decided to
cancel the project."
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970627
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CBR tax computerization to be handed over to MNCs
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Our Correspondent
ISLAMABAD, June 26: Pakistan Revenue Automation Limited, a Rs 700 million
tax data processing project, is to cease functioning as a monitoring
apparatus, confirmed the Central Board of Revenue officials.
Ahmad Khan, Member Administration/Taxes, Central Board of Revenue, who is
also one of the directors of PRAL, confirmed the Dawn report on Wednesday,
that "the out-sourcing has been cleared by the federal government at the
conceptual stage".
He did not respond to the question as to what would happen to the huge
amount of money spent on this project ever since its creation in early 1992.
PRAL is the software house, a company of the CBR for pooling and analysing
the tax collection information, throughout the country. The Central Board
of Revenue Chairman, Hafeezullah Ishaque, made a presentation to Prime
Minister Nawaz Sharif, on May 19, 1997, to allocate Rs 100 million for
inducting further improvements in the network.
He added that for out-sourcing, PRAL would call tenders, and the lowest
bidders would be given the job to connect the tax collecting apparatus
through the equipment thus acquired". He, however, did not disagree with
the fact that by having created a software for carrying out the tax
information pooling and analysing, PRAL had in fact already created
prospects of ridding the CBR of the huge tax collecting bureaucracy, which
is in line with the government's policy of downsizing the state apparatus,
minimizing intimidation of taxpayer at the hands of the collecting staff,
and enhancing revenues by plugging in the slippages, evasions and
short-filings.
However, he did not choose to answer the question regarding the
apprehensions being articulated by different CBR high ups, who had openly
expressed opposition to further improvements in PRAL. They fear that these
improvements might do away with a good part of the leverage and authority
they enjoy because of loopholes in the collection and implementation of tax
methods.
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970624
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Loadshedding leads to suspension of morning session
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Staff Reporter
KARACHI, June 23: For the first time in the history of Karachi Stock
Exchange, trading in the morning session had to be suspended because
brokers left the trading hall in protest as there was no power owing to
massive loadshedding by the KESC. The KSE index was down 5.74 points at
1,593.37.
The Karachi Stock Exchange has its own generators but brokers claim they
could not provide sufficient power and electricity to efficiently run stock
trading. However, before their snap exit, trading in eight shares was
transacted, four each closing higher and falling. The index was down
fractionally, 0.18 point at 1,598.93, as compared to 1,599.11 at last
weekend session.
Although the trading interest in the evening session was confined to a
dozen shares, notably the current favorites PTCL, Hub-Power, ICI Pakistan,
Dewan Salman, which accounted for more than 90% of the total turnover of 10
million shares, some of the low-priced blue chips also came in for active
support at the lower levels.
Bulk of the support remained centered around PTCL, ICI Pakistan and
Hub-Power followed by some cement and low-priced bank shares. The KSE
100-share index fell 5.74 points at 1,593.37, which was poised to breach
the 1,600 barrier, as compared to 1,599.11 at the last weekend. The market
capitalization also suffered a decline of Rs 2.424 billion at Rs 499.868 as
compared to Rs 502.292 billion on last Friday.
Traded volume totaled 10.309 million shares as compared to 10.750 million
shares in previous CTS trading. Out of the 30 actives, 19 fell while only
two rose with 9 holding on to the last levels.
The most active list was topped by PTCL, off 40 paisa on 5.304 million
shares, followed by Hub-Power, lower 35 paisa on 2.095 million shares, ICI
Pakistan, easy 10 paisa on 1.987 million shares, Dewan Salman, off 25 paisa
on 0.467 million shares, and Pakland Cement, lower 30 paisa on 0.137
million shares. Other actively traded shares were led by Dewan Salman,
lower 25 paisa on 0.467 million shares, Schon Bank, easy five paisa on
52,500 shares, Dhan Fibre, lower five paisa on 46,000 shares, and D. G.
Khan Cement, off 20 paisa on 48,500 shares. Barring Shell Pakistan and
Jahangir Siddiqui & Co, which fell by one rupee to Rs 2, losses were
fractional ranging from 5 to 40 paisa.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
970628
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Investors not ready to take risks on law, order rumours
-------------------------------------------------------------------
Staff Reporter
KARACHI, June 27: Stocks fell further across a broad front on Friday as
investors were not inclined to take new positions but rather took profits
at the available margins owing partly to weekend considerations. The KSE
100-share index fell 8.22 points at 1,571.27 amid light trading.
Unlike previous sessions, selling was well-absorbed, notably at the dips,
as a section of leading operators covered positions to realize quick gains
next week.
However, the direction of the market is unclear as those who could lead it
to the path of recovery are also reluctant buyers.
The market, therefore, lacks both the will and courage against the heavy
odds with which it is confronted at present.
The KSE 100-share index suffered a fresh setback of 7.94 points at 1,571.55
as compared to 1,579.49 a day earlier as losers maintained a strong lead
over the gainers at 149 to 78 with 89 shares holding on to the last levels.
In the evening session, it showed a fresh fall of 0.28 points at 1,571.27
but larger one was resisted as leading shares, notably ICI Pakistan, PTCL
and PSO, resisted fresh decline and ended steady.
The market capitalization, however, suffered a fresh fall of Rs 2.572
billion at Rs 492.227 as against overnight's Rs 494.800 billion, owing to
weakness of some leading shares.
A number of share scams, which have rocked the stock market during the last
one week and finally led to default of two leading members of the Karachi
Stock Exchange, appeared to be the chief inhibiting factor behind the
current easy stance of the market, an analyst at a leading research house
said.
Added to it are fears of law and order in the city in the wake of recent
killings leading to an uncertain market conditions, he stated.
"The near-term outlook appears to be bearish as investors are not inclined
to take risks on rumours that law and order situation in the city could
deteriorate further," said a leading broker.
He apparently based his assumption on the prevailing uneasy relationship
between the coalition partners in the Sindh government in regard to city
violence.
However, unlike previous sessions, revival of demand in most of the
multinationals, notably pharma units including Glaxo-Wellcome, Knoll Pharma
and some others, was welcomed by investors as it could lead to a broad
recovery in the sessions to come.
Fresh good gains scored by most of the leading ICP mutual funds, which
posted gains ranging from Rs 2 to Rs 3.10, showed that investors who are
not inclined to take risks are buying safe shares.
Engro Chemicals, Philips, Mari Gas, Pak Leather, Dewan Textiles, KASB & Co,
Prudential Commercial Bank and Al-Hamd Textiles were among the other major
gainers, rising by one rupee to Rs 1.50.
The biggest gain of Rs 33 was noted in Lever Brothers, which soared to Rs
780 on 300 shares recouping early week losses.
The covering purchases were triggered on rumours of higher interim,
possibly by the next week.
Losses were fractional barring Al-Ghazi Tractors, Telecard, PSO, Shell
Pakistan and Grays of Cambridge, which fell by one rupee to Rs 3.75. EFU
General Insurance and ICP SEMF also fell.
Traded volume fell to 14 million shares from the previous 23 million shares
owing partly to a short Friday session and partly to the absence of leading
bargain-hunters.
Bulk of the selling was chiefly centred around the current favourites as
investors hastened to take profits at the available margins.
The most active list was topped by PTCL, off 35 paisa on 4.506 million
shares, followed by ICI Pakistan, lower 20 paisa on 1.886 million shares,
Hub-Power, off 40 paisa on 1.780 million shares, Dewan Salman, lower 30
paisa on 1.250 million shares, Dhan Fibre, steady 10 paisa on 0.282 million
shares, and KASB & CO, up Rs 1.50 on 0.210 million shares.
The other actively traded shares were led by Saadi Cement, off 50 paisa on
2.525 million shares, Pakland Cement, easy 85 paisa on 1.810 million
shares, and MCB, up 35 paisa on 0.147 million shares. There were some other
active deals also.
The notable feature was that both Saadi Cement and Pakland Cement came in
for active selling in cross transactions and assumed the role of most
active shares, relegating ICI Pakistan and Hub-Power to the secondary
positions for the first time since they made debut.
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970622
-------------------------------------------------------------------
The missing chapter
-------------------------------------------------------------------
Ardeshir Cowasjee
TIME: afternoon of Thursday, June 19, 1997. Forum: the launching of Rafi
Raza's book Zulfikar Ali Bhutto and Pakistan, attended by many very hungry
people; the tea tables were cleared within minutes, leaving not even dry
crumbs for the birds.
On one side of the author smugly sat Engineer-Doctor-Ideologue Mubashir
Hasan (both were close aides of Chairman Bhutto during his years of
misrule), on the other sat one of our rare politicians of integrity,
Sherbaz Mazari. These were the three launch-speakers.
First citizen: Rafi and Mubashir don't seem to be at all remorseful. Second
citizen: They were weak people, incapable of standing up to or fighting evil.
To begin with, I must apologize to Rafi Raza. I once wrote that he was the
first rodent to leave the sinking ship. That impression has been corrected.
On page 347 of his book, he writes: "On 16 April 1977 ... we stopped at
Mubashir's house to say good-bye, but he had already gone abroad."
The author has glossed over many important events that were responsible for
where we find ourselves today, but perhaps some of us can be generous and
accept his explanation that had he written it all, the book would have run
into 4,000 pages. He has also been economical with the truth wherever he
has written it, but he can perhaps be credited with being the first to have
ever confessed: "While there had been a certain amount of agitation on the
Qaidiani issue, it was not of such a serious nature as to require defusing
in this way. The announcement served as a temporary expedient to distract
opinion and avert further agitation. Lost sight of was the fundamental
principle of whether the religious issues can or should be settled in a
political forum." In June 1994, the Qaidianis, an entire community, who had
supported the Great Leader and his party in the 1970 elections, were
unanimously declared by the National Assembly to be non-Muslims. "The
Assembly proceedings were held in camera and still remain secret." (p.294)
Sherbaz was forthright. He did not dwell on his own sufferings, his
incarceration, or the harassment meted out to his family, or the raids
conducted on his house in the Bhutto days.
He reminded us forcefully that those of Bhutto's political opponents who
had been murdered must not be forgotten. With very apparent emotion he
named many of his friends who had been "eliminated'. We later exchanged
notes and he suggested that I write the missing chapter to Rafi's book. He
rightly said that history should not be allowed to be distorted, or
cleansed, as it has been.
The missing chapter must contain a brief summation of a few of the
political murders of Bhutto's mythical or actual enemies that took place
during his regime. For the first time in the history of Pakistan murders,
or extra-judicial killings, were institutionalized by the Federal Security
Force, created as a civil task force of the federal government, ostensibly
to assist the civil administration and the police in the maintenance of law
and order - to quote Bhutto, "to enable a civilian government to avoid
seeking the assistance of the armed forces in dealing with its
responsibilities and problems." Masud Mahmood was chosen to head the force,
the nucleus of which was created in 1972 by the ministry of the interior
and given an ad hoc grant of Rs 500,000. Bhutto wished to make it to be the
most high caliber force, attracting the cream of talent and youth of the
country.
Of its worthy achievements, hand in hand with the nebulous 'agencies', let
us take Sherbaz's story of the elimination in 1976 of young Asadullah
Mengal, son of that most upright Baloch Sardar and gentleman, Ataullah.
Asadullah and his friend Ahmad Shah Kurd were ambushed outside the house of
Balakh Sher Mazari. Asadullah was killed, and his body dragged along the
road and dumped in the back of a car. Ahmad Shah was taken alive, put in
the car, driven away and then killed. No one was ever charged, no one ever
found out the who's, the why's or the wherefore's.
One night in December 1973, a hand grenade was thrown down the ventilator
of the Quetta house of NAP Pakhtoonkhwa leader Abdus Samad Achakzai. The
grenade exploded, killing Achakzai. No one was ever charged or apprehended.
Sherbaz spoke also of 'Johnny' Dass, son of the highly respected Air
Commodore Balwant Dass, one of the most senior officers of the PAF who
served his country with distinction. Dulip Dass, known to his family and
friends as Johnny (and Later known to the Baloch as 'Dilu') at the age of
25 returned to Pakistan from England in 1972, where he was doing his
chartered accountancy - 'to do something for his country', as he put it. He
and a few other idealistic young men went to Balochistan. Johnny was
accused of being a sympathizer of the Baloch insurgency and was put on the
'wanted' list. On his way out of the province, betrayed by an informer, he
was ambushed at Jhatpat, taken away by the 'agencies', kept in custody (in
Quetta jail for a while, it is said). The story has it that he was tortured
to death. Where or when no one knows. His father spent months on his trail
in Balochistan; despite his rank and standing neither the army nor the
'agencies' gave him any help or information. His body was never found.
In March 1974, Maulvi Sahmsuddin, Deputy Speaker of the Balochistan
Assembly of the opposition party Jamiat-i-Ulema Islam, left Quetta for Fort
Sandeman in his official vehicle. Malik Haji Gul Mandokhel left Quetta by
car later the same day and found Shamsuddin shot dead in his car near Qila
Shagal. It was later learnt that a man called Shah Wazir had visited
Shamsuddin at Quetta, stayed with him for three days and had insisted on
accompanying him to Fort Sandeman. Shah Wazir was never found, dead or alive.
Dr Nazir Ahmed, MNA of the JI, was an outspoken critic of Mr. Bhutto's
politics and style of government. One evening in June 1972 a man entered
his clinic in Dera Ghazi Khan and shot him dead. The case was ostensibly
investigated by the police. Two men were sent up for trial and both were
discharged by the court, the judgment saying: "The investigation seems to
be intentionally dishonest." The public prosecutor submitted before the
court that the police had intentionally 'spoiled' the case. Jassarat, in a
front-page article, wrote: "the motive behind the murder is political and
the police investigation are ridiculous." Information Minister Kausar Niazi
suggested that action be taken against the paper and Bhutto approved,
noting "certainly this needs to be done."
Then there were the six Hurs - Mehrab Sinjhrani, Umaid Ali Sinjhrani, Jan
Mohammed Sinjhrani, Hanzo Bahnejo, Syed Ali Sher, and Allah Dad Wadho. Pir
Pagara posed a problem for Bhutto, so in 1973 a plan was prepared to
diminish, if not demolish, his influence by subduing his followers. Chief
security officer Saeed Ahmed Khan and provincial minister Jam Sadiq Ali
were ordered to undertake the anti-Hur operations. Ali Bakhsh Junejo of the
Sanghar district PPP, a close associate of Jam Sadiq Ali, was murdered by
unidentified men. The following day, the six Hurs were ordered to attend
the court of district magistrate, Sanghar, Imdadullah Unar, where
proceedings under the 'Goonda Act' were pending against them. The
magistrate handed them over to police custody. They were confined in
Sanghar police station and that night were taken out handcuffed, and driven
towards Kanan Mori. Jam Sadiq Ali, Imdadullah Unar and SP Ghulam Shabbir
Kalyar followed them in another vehicle. At Kanan Mori the six Hurs were
shot dead in "an encounter with the police." The police party was rewarded.
Faqir Mohammed Amin, chief Khalifa of Pir Pagara and a leading Hur, was
taken to Sukkur jail in October 973. On the strength of a fictitious surety
bond he was taken out of jail by sub inspector Maluk Hussain of Sanghar
police station, driven to an unknown destination and has never been heard
of since.
The most famous of the political murders was that of Hayat Sherpao, one of
the founders of the PPP. Rafi writes: "A few months before his death he
seriously considered leaving the Party altogether ... Of all those around
ZAB, Sherpao's personal devotion had been the greatest and his subsequent
disillusionment was consequently the most profound." In February 1975, he
was blown up by a bomb whilst addressing the students of Peshawar
University. ZAB was in New York at the time and on hearing the news "rushed
back to Pakistan deprived of enjoying to the full the success of his visit
to the US." This murder was the perfect excuse for ZAB to ban the NAP and
imprison Wali Khan and all the other leaders.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
970628
-------------------------------------------------------------------
The inquisition
-------------------------------------------------------------------
Mazdak
MORE and more, accountability has come to resemble a loaded gun in the
hands of children who get excited, grab the shiny new toy, and promptly
shoot themselves in the foot with it.
Successive leaders - dating back to Yahya Khan and his famous 303 - have
pounced on the accountability concept as though they had invented it, and
then proceed to politicise and distort it out of all recognition. The
present government is doing all it can to prove the old French adage: "Plus
ca change, plus c'est la meme chose." (The more things change, the more
they stay the same). Laws are being amended to suit the ruling party,
political rivals are being harassed, and individuals are being victimised,
all in the name of accountability.
The problem with this process is that it is fast deteriorating into a
charade, shorn of all credibility and morality. It may well be dressed up
in the fig-leaf of legality provided by laws bulldozed through Parliament,
but in the public eye, this whole sorry business is becoming more and more
odious with each TV special purporting to uncloak yet another scam.
Considering they have so much to go on, it is amazing that all the
Accountability Cell has produced by way of incriminating evidence against
Asif Zardari on TV is that he rode on horseback to a village where we are
told a polo club was planned. The thought of this being trotted out as
evidence in court is so ludicrous that one wonders what the combined
resources of our proliferating intelligence agencies are being used for.
The evidence produced in other cases is not much more tenable either.
Several civil servants are in jail - or are out on bail - because they
signed certain documents in the normal discharge of their duties. Although
it was subsequently alleged that this had caused a loss to the exchequer,
it can in no way be established that these officers benefited personally.
It may well be that some or all of them are on the take, but the cases for
which they have been charged cannot stand close legal scrutiny. And apart
from discrediting the whole process, this haphazard application of
accountability has made government officials extremely reluctant to take
decisions and put their signature on any document that can be later used
against them. This has further slowed down the entire government machinery,
never very swift at the best of times, as everybody in a position of
authority is more concerned with passing the buck than getting the job done.
I know the problem of collecting solid evidence in corruption cases is
practically insurmountable: as my friend Ardeshir Cowasjee is fond of
asking: "Yar, kubhee chor bhi receipt dayta hai?" Actually, he puts it more
colourfully, but this is a family newspaper. I have always advocated that
the way to get around this difficulty is to put the onus of proof on the
accused and make him justify his lifestyle. Thus, if a civil servant has
held a lavish wedding ceremony graced by the highest in the land, he should
explain where he got the money from. Similarly, if a politician has a fleet
of Pajeros and lives in a palatial house, he should be called upon to
account for his assets. And it ought not to be enough to say that he has
income from rural property: income from each acre can be fairly accurately
quantified, so he can hardly claim to have bought an estate abroad from the
income of even a large farm.
Instead of following this fairly straightforward method, the Accountability
Cell and its now junior partner, the Ehtesab Commission, have opted for the
more difficult route of framing charges on the basis of official documents
which, by their very nature, conceal more than they reveal. Although
wrongdoing can be inferred from some files, it will be a very stupid
bureaucrat who leaves a paper trail. And by framing charges on the basis of
inconclusive official documents, the government is ensuring that either
these allegations cannot stand up in court, or there is ample room for
appeal. In either case, officials and politicians being subjected to the
present accountability process can lay claim to public sympathy - a very
fickle and quicksilver sentiment at the best of times.
On a more personal note, I know of one officer who has twice attempted to
commit suicide in the last weeks, and is currently in hospital recovering
from his most recent attempt. The charge on which he was arrested well over
a year ago will be difficult to prove when the actual trial begins, but
this last year in jail has shattered him. I am in no position to pronounce
on his guilt or innocence, but surely he could have been granted bail
pending the commencement of his actual trial, specially when many people
accused of murder are given bail at the drop of a hat. Many others, some
guilty and some not, are shuttling between courts and FIA offices, trying
desperately to escape the indignity of imprisonment. In most of these
cases, the actual trials are nowhere near opening. In the bizarre attempt
to nail the transport of several crates of personal belongings from Bilawal
House to England on our then High Commissioner, the government is venting
its spleen on Wajid Shamsul Hasan who continues to languish in jail despite
his ill health.
In large part, this sorry spectacle has been caused by the public pressure
exerted on the government to lock up corrupt politicians and bureaucrats,
and confiscate their ill-gotten gains. But "the hasty stroke goes oft
awry." By openly biasing the process against the PPP, the government's
moral authority is being steadily eroded, and conversely, the accused are
gaining a degree of sympathy to which they should not have been entitled,
had the whole exercise not been so patently skewed. Had the process been
even relatively unbiased, we would have applauded, but when you make men
against whom corruption charges are pending chief ministers and chief
secretaries, then obviously, people start questioning the government's
motives.
The recently published list of amenity plots sold by the previous
administration to schools and educational foundations in Islamabad at
supposedly "throw-away prices" is an indication of the government's
desperation in wanting to pin something, anything, on Benazir Bhutto.
Amenity plots, by definition, are meant for schools, parks, hospitals and
libraries. So what's the big deal here?
Many citizens of Karachi would be familiar with Nasra Wazir Ali's excellent
schools where the fees are very low and the standards very high. It just so
happens that this distinguished educationist's daughter is Shahnaz Wazir
Ali, who was a special assistant to the former prime minister. By any
objective standard, Nasra Wazir Ali is perfectly entitled to an amenity
plot to establish a school. Similarly, Ms Salma Ahmad, who runs the highly
successful Islamabad School of Arts and Science out of rented promises,
should be able to get a plot to build a school on. And yet both these cases
have been cited by the Accountability Cell as examples of corruption during
the previous government. Since both charges can be so easily disproved, the
veracity of the other allegations becomes highly suspect.
Ultimately, credibility is essential for the accountability process because
without it, the whole exercise resembles a mediaeval inquisition without
the religious trappings.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
970628
-------------------------------------------------------------------
Bypassing the law of extradition
-------------------------------------------------------------------
Khalid Jawed Khan
THE sensational arrest and extradition of Aimal Kansi has raised some
fundamental constitutional and legal issues. It is also reminiscent of the
extraordinary manner in which Ramzi Ahmed Yousaf was earlier extradited to
the United States.
In this age of shrinking world, extradition of citizens to states where
they have committed some offence is not an uncommon phenomenon. The global
community must unite and make a concerted effort to send a clear message to
international outlaws that they cannot escape the long arm of the law by
slipping into the borders of other countries, including their own. There
must be no sanctuaries for those who perpetrate violence or engage in
drug-trafficking and similar other heinous crimes. Nothing short of a
global crusade against these criminals would suffice.
In Pakistan the law relating to extraditions is governed by the Extradition
Act, 1972. Pakistan has extradition treaties with various countries,
including the United States (this was a pre-independence treaty between the
UK and the US which has been adopted by Pakistan). So far Pakistan has
extradited more than twenty or so of its citizens to America. Pakistan has
also requested extradition / deportation of some of the Pakistanis from the
US. So far the US has not extradited / deported any expatriate Pakistani as
a result of the request by our government. It has been one-sided compliance
all along.
Although most of the extraditions from Pakistan have been on drug related
offences, these two most sensational cases relate to the bombing of the
World Trade Centre and the murder of two CIA agents reportedly by Ramzi
Yousaf and Aimal Kansi respectively. Regardless of one's political
sympathies, terrorism simply cannot be condoned and its perpetrators must
be brought to justice. Yet in facilitating the arrest of such offenders,
the government of Pakistan has violated the specific provisions of our own
law. Violation of law at the hands of criminals is understandable but what
is hard to stomach is when governments deliberately flout the laws of the
land.
The procedure for extradition under the Extradition Act, 1972, is that a
requisition for surrender of a fugitive from justice is made to the
government by the country seeking his arrest and extradition. Thereafter, a
magistrate issues a warrant of arrest. When the offender appears before the
magistrate, evidence is adduced. The magistrate is also required to see if
the offence is an extradition offence and is not an offence of a political
nature. If it is the latter, there can be no extradition.
On the conclusion of the inquiry, if the magistrate is satisfied that no
prima facie case is made out, he is required to discharge the offender. On
the other hand, if a prima facie case for extradition is made out, the
magistrate reports the matter to the government and commits him to prison
subject to his entitlement to bail. On receipt of the report of the
magistrate, if the government is of the opinion that the offender ought to
be surrendered, it may issue a warrant for the custody and his removal.
However, the Act specifically provides that the offender shall not be
delivered until after the expiration of fifteen days from the date he has
been taken under such warrant.
The extradition of Ramzi Yousaf as well as that of Aimal Kansi clearly
violated these provisions. Immediately on their arrest, they were handed
over to American agents (reportedly they were arrested by American agents
themselves) who immediately whisked them to the waiting special American
aircraft which flew them to the United States.
Even a more pertinent question than the violation of the provisions of the
Act is whether the Constitution at all permits extradition of Pakistani
citizens. The Constitutions of 1956, 1962 and 1972 (interim) provided for
the fundamental right of free movement in the following terms: "Subject to
any reasonable restrictions imposed by law in public interest, every
citizen shall have the right to move freely throughout Pakistan and to
reside and settle in any part thereof. This obviously meant that the
citizens were guaranteed the freedom of movement throughout the country as
well as the right to reside and settle anywhere in the country, subject to
reasonable restrictions imposed by law. The language clearly suggests that
there was no absolute right as such.
This may be compared with the language of Article 15 of the Constitution of
1973, which provides that: "every citizen shall have the right to remain
in, and, subject to any reasonable restriction imposed by law in the public
interest, enter and move freely throughout Pakistan and to reside and
settle in any part thereof." There is an obvious departure from the
previous constitutional provisions. The language clearly indicates that
although the right to enter, move, reside and settle in Pakistan is subject
to restrictions imposed by law, there can be no such restriction with
respect to the right to remain in Pakistan.
Consequently, a person who is a citizen of Pakistan could not be extradited
to any other country. Justice Muhammad Munir, the former Chief Justice of
Pakistan in his commentary on the Constitution observed that "this right is
absolute and unqualified. A citizen cannot, therefore, be expelled or
banished from the country."
However, the Supreme Court of Pakistan has not accepted this interpretation
of Article 15. The issue arose in the case of Nasrullah Khan Hanjera V
Pakistan, PLD 1994 SC 23. Besides this argument, it was also submitted that
quite a few countries, particularly France, do not extradite their
citizens. The Supreme Court rejected the argument on the basis of reasoning
which lacks the cogency which is otherwise the hallmark of the apex court.
The Supreme Court based its decision on two grounds. Firstly, their
Lordships referred to the Objectives Resolution and observed: "It does not
stand to reason that, on the one hand, one Constitution after another
should be reiterating the commitment of the Pakistan nation to attainment
of an honoured place amongst the nations of the world, yet, on the other
hand, it should incorporate a provision which would make Pakistan a safe
haven for those of its citizens who commit serious crimes abroad and then
take refuge in Pakistan to avoid punishment."
The second reason which persuaded the honourable court was that, "if a
Pakistani citizen while outside its limits commits an offence which is not
covered by a Pakistani law having extra-territorial applicability, and then
manages to return to Pakistan he would enjoy complete immunity from
prosecution and if Article 15 is interpreted in the manner suggested..., it
will also not be permissible to send him to the country where he committed
the offence."
The infirmity in the above reasoning immediately becomes obvious. As far as
the first reason is concerned, it is difficult to see why a country would
lose its honour if its constitution prohibits extradition of its citizens
for crimes committed abroad. If there is any one nation in the world which
is most conscious about its honour and proud of its legacy, it is France
and it does not extradite its citizens, whatever the crime some of them may
commit in a foreign country and does not feel apologetic about it. Some
other European countries too follow the same practice without their honour
or their dignity diminished in the eyes of the world community.
As to the second reason given by their Lordships, it is true that if a
Pakistani commits an offence which is a crime in another country but not so
in Pakistan, then he cannot be tried here. Hence the only way, observed the
Supreme Court, is to extradite him to that country where he committed the
offence. This, however, ignores the provisions of the Extradition act,
1972. Section 2(1) of the Act defines "extradition offence" for which a
citizens can be extradited. It provides that "extradition offence means an
offence the act or omission constituting which falls within any of the
descriptions set out in the schedule and, if it took place within, or
within the jurisdiction of, Pakistan would constitute an offence against
the law of Pakistan."
In other words, there can be extradition only for an act which is an
offence in both countries and unless that is so, there can be no
extradition. Hence in the example given by their Lordships, there can be no
extradition in any event. This judgment of the Supreme Court needs to be
reconsidered by the apex court.
There is little doubt that by the two extraditions mentioned at the outset,
Pakistan may have earned the appreciation of the United States (whatever it
is worth) but we must not delude ourselves that it has also enhanced our
respect and dignity in the wider world. If we compromise on our
self-respect, dignity and sovereignty and make ourselves amenable to the
dictates of the big powers in disregard to our own laws, we would only
lower ourselves in the estimation of other nations.
It is not argued here that Pakistan should spoil its relationship with the
United States or provide a safe haven for international terrorists. What is
stressed here is that we should not compromise our self-respect even in
adversity. We must have greater confidence in our own legal system and
uphold due process of law under all circumstances. If there are flaws in
the system - and there are quite a few - the solution lies in improving it
rather than ignoring it. The Ramzis and Kansis of this world deserve no
sympathy. But it is not just their interest; it is the supremacy of law
that is at stake. We should not allow our legal system to be sidetracked
for the benefit of our friends and allies.
===================================================================
970627
-------------------------------------------------------------------
Haroon appointed senior team coach for three years
-------------------------------------------------------------------
Samiul Hasan
KARACHI, June 26: In a major and surprising announcement, the Pakistan
Cricket Board (PCB) elevated Haroon Rasheed as cricket manager of the
national team that will take part in the Asia Cup to be played between July
14 and 29 in Sri Lanka.
Haroon Rasheed was scheduled to fly to England on Saturday morning with the
Pakistan A team on a 50-day tour. He has been picked after Wasim Hasan Raja
apparently expressed his inability to serve as cricket manager on a
long-term basis.
Haroon's spot for the England tour has been assigned to Agha Zahid who was
earlier named as manager of the team. Justice Chaudhry Ijaz Yousuf of
Quetta, in another surprise move, has been appointed manager with Zaheer
Abbas once again been passed over.
Haroon Rasheed, a veteran of 23 Tests and 12 one-day internationals, also
served as manager in 1988-89 when the cricket team won the Sharjah Cup.
However, the contract has not been finalised yet. Sources said Haroon would
be signing it on Saturday with minor changes expected in the one which was
given to Mushtaq Mohammad in September last year.
"Haroon will get the same amount (Rs 40,000) which Mushtaq was receiving.
However, there is a possibility that the only modification in the new one
might be his (Haroon's) share in the sponsorship money," sources,
requesting not to be quoted, said.
However, Majid Khan refused to discuss the details of the contract which
will be offered to Haroon Rasheed. "It cannot be made public. It is a
confidential matter between the board and Haroon Rasheed.
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970627
-------------------------------------------------------------------
Aamir Sohail to be dropped on 'poor' past performance?
-------------------------------------------------------------------
Sports Reporter
KARACHI, June 26: The Pakistan Cricket Board (PCB) continues to find means
to keep star cricketer Aamir Sohail from getting into the team that will
play the Asia Cup next month, thus delaying the announcement of the
selection committee meeting.
After apprehending rebellion and indiscipline in the team with the
inclusion of Aamir Sohail, the PCB has opened all record books to asses the
performance of the left-hander in the last one year.
"It has been recommended to the selectors that they should watch out Aamir
Sohail's performance since the England tour," sources, on condition of
anonymity, said.
Aamir Sohail got just four half centuries in 20 odd one-day internationals
he played in Canada, Australia and one against Zimbabwe at Quetta.
Sohail's domestic performance is also under scrutiny after the player
proved his mettle and utility in every level of the game. "He is under a
close watch."
Chairman of the selection committee, Salim Altaf, admitted that the
finalisation of the side has been delayed till next week. "I did
preliminary discussion with Haroon Rasheed but nothing has been finalised.
With only question mark hanging on Aamir Sohail and Azhar Mahmood, and none
of the domestic performers like Manzoor Akhtar, Mohammad Ramazan, Ather
Laiq, Basit Ali expected to impress the selectors, the other 12 look like
this:
Ramiz Raja (captain), Saeed Anwar (vice captain), Shahid Khan Afridi, Salim
Malik, Inzamamul Haq, Moin Khan (wicketkeeper), Saqlain Mushtaq, Arshad
Khan, Mohammad Husain, Aqib Javed, Shahid Nazir and Kabir Khan.
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970623
-------------------------------------------------------------------
Recent setbacks impair Pakistan's prospects
-------------------------------------------------------------------
A. Majid Khan
After a magnificent recovery following the 1996 Atlanta Olympic debacle
without the services of Olympians Tahir Zaman, the inside right, and
inside-left Mohammad Shahbaz, Pakistan managed to reach the 18th Champions
Trophy final only to lose against Netherlands last December.
The Madras performance, however, brought new hope that Pakistan was well on
the road to recovery for the bigger challenge awaiting it in the coming
Adelaide Champions Trophy in October this year and the more challenging
contest in the World Cup in Utrecht (The Netherlands) in May next year.
More recently Pakistan's performance in the five-nation Golden Jubilee
tournament in Karachi in March, followed by Six Test series against
Australia in May and the latest poor showing of Pakistan in the four-nation
tournament in the Netherlands as also in the one off Test in Germany had
cast serious doubt on our preparations and prospects for meeting the two
big challenges.
In the five-nation Golden Jubilee tournament we fared badly securing third
place as Germany, who finished third in the 1996 December Madras Champions
Trophy, won the tournament in Karachi defeating Olympic champion the
Netherlands in the final.
Our performance was no better in the six-test tour of Australia in May as
the series ended in a draw. Pakistan's tour of Australia ended on a highly
unsatisfactory note as it won three matches and lost as many encounters
scoring 14 goals and conceding 13. This indicated low scoring on the part
of the attacking line as well slackness in the intermediate line that
brought the defence under mounting pressure and near collapse. No
goalkeeper in the world alone can save the team if its defence is
vulnerable. What had happened in the four-nation tournament in the
Netherlands is even more disgusting as Pakistan lost to England by 3-4,
defeated little known South Africa by 5-2 and lost to the Netherlands by
0-4 to get third place in the tournament which ended on June 18.
The team proceeded to Germany for one-off Test and were thoroughly beaten
by Germany, the Karachi golden jubilee hockey champions, who won by 3-0.
These setbacks have caused concern in Pakistan hockey circles more so when
the Adelaide Champions Trophy is only three months away, the first real
test before the 1998 World Cup in May.
It is time to buffet the team rebuilding process. The need to replace
mediocre wingers is upper-most. Without a reliable and genuine right-winger
Pakistan would continue to face problem in launching an attack from the
right flank. The problem lies with the selection committee which is
undecided and unsure in its assessment. Let Mohammad Ali be given full run
in the coming Champions Trophy. He is fully capable of carrying his
responsibility, provided he is not kept on tenter hooks.
The selectors are also putting extra faith in the juniors international
left-winger Babar Abdullah despite his failures. He is preferred over Asif
Ahmed and Mohammad Anis both internationals and much better left-wingers
than Abdullah who usually becomes inside-left rather than left-winger thus
creating constant problem for the inners. Even on the recently concluded
twin tour of the Netherlands and Germany no reserve player, who could play
as left-winger and inside-left, was included in the 16-member squad.
Pakistan's forward line needs strengthening before the Champions Trophy.
Mohammad Shahbaz has become injury-prone and suffered from a suspect knee
during the second Test in Australia and was rested for the European tour.
Tahir Zaman seems to have lost his penetrating skill and effectiveness
after giving his best to the team.
In such a situation Rahim Khan should be given his long awaited position of
inside-right with Mohammad Ali as right-winger. Kamran Ashraf, the centre
forward, seems to have overcome his bad patch. Anis, basically a left
winger is also capable of being an effective inside-left.
The time is running out as without an effective and penetrative attacking
line Pakistan would remain wanting in scoring. Our scoring has come down
and is frustrating. The present intermediate line appears good but the
great drawback is that Mohammad Khalid Senior is lacking in his ability to
assume the role of an attacking centre-half. A centre-half must possess
both attacking and defensive capabilities.
The defence line barring Danish Kaleem, needs more drill though it has
developed good understanding. Goalkeeper Mansoor Ahmed as a captain, should
also play an inspiring role in the team. Besides the four officials of the
Pakistan team, others who toured Europe were the two selectors, Akhtar
Rasool, who is the senior vice-president of the Pakistan Hockey Federation
and Manzoorul Hasan, and PHF Secretary, Col Mudassar Asghar, invited by the
hosts. It means no less than seven officials were with the team. What was
the need of the two selectors going to Europe. It has created a bad
impression and set an unhealthy precedence.
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970623
-------------------------------------------------------------------
Handicaps in hockey development at home
-------------------------------------------------------------------
Michael Carman
MELBOURNE: In an interview after the recent test services held at the state
hockey centre, Dr. Tariq Aziz, Pakistan 'team manager' stated that the team
was "very much in a 're-building stage' and in a 'long term preparation
mode' gearing itself up for several international tournaments leading into
the Sydney Olympics" in the year 2000.
He said that Pakistan had "stuck to its guns in terms of 'plan, strategy
and attitude' and had performed 'reasonably well' according to our pre-tour
expectations". He pointed out that "each time Pakistan had lost to
Australia" until the final match, "it was a game that was played on a newly
laid synthetic surface which was 'very bouncy' requiring some degree of
physical adjustment".
He noted that "in Melbourne alone there are no fewer than 25 artificial
surfaces". "These were available to the hockey playing public at large, as
well as to the graded structure within clubs and the hockey association in
general". This enabled any hockey player in Australia "to train on the best
field conditions consistent with those they would be required to play on in
a tournament anywhere in the world", without having to make any major
adjustments. "Whereas in Pakistan, there is a total of 11 synthetic
surfaces throughout the country, out of which 9 are in extremely poor
condition, receiving little or no attention". "The remaining two are
regarded as being in fair to good condition, due to government assistance".
Dr. Tariq said that "the youth in Pakistan had no option but to practice
and play on the 'maidans' or open playing fields, on uneven hard dirt or
grass", equivalent to backyard playing conditions "if they wanted to pursue
their dreams and goals in this sport". "They seem to encounter many
problems in the transition such as knee ligament strain, hamstring and calf
muscle and tissue tear, along with strain to the ankle and foot". "This is
often due to the fact that the various muscles within the leg and foot have
not been adequately developed or prepared to cope with the physical
requirements of having to adjust to playing on a synthetic surface".
"Nutrition and diet deficiency are also vital factors that combine with
some of the other reasons, that make it an uphill battle for a number of
Pakistanis to overcome". "We work hard at relating the necessity in
understanding the importance and significance of implementing the correct
diet to each individual player". "As a part of his training, we encourage
him to follow a basic program that will help him reach his peak in both
mental as well as physical conditions, so that as a team we will remain the
No. 1 contender in any major hockey tournament and to retain the World
Cup". "It has become a totally different game compared to playing on the
old pitches of yesteryears, placing new demands on the body and requiring a
whole new approach to training methods".
"Within the Pakistan hockey team, the Manager and Chief Coach are required
to apply their own brand of psychology". He said it was "Designed to
motivate and create an inner driving force, to develop strong mental
conditioning and a positive attitude within the players".
"Natural talent on its own is not enough". "It must also combine with the
other necessary physical and mental attributes in order to focus on the
task at hand, so as to give the player his best shot". Dr. Tariq Aziz ended
by saying that "These are the thoughts and attitudes which will help
overcome the many setbacks we suffer due to the inadequate training
facilities that exist in Pakistan today".
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970623
-------------------------------------------------------------------
Is Cairo defeat a warning to Jansher Khan?
-------------------------------------------------------------------
Lateef Jafri
The surrender of the Al-Ahram title by world champion Jansher Khan created
a shock as well as disappointment in the squash circles of the country
since twice earlier the Khan had tamed Scotland's Peter Nicol in the
prestigious British Open and Hatfield's Super Series, the latter having a
strange and somewhat controversial scoring system.
The reasons of Jansher's stumble in Cairo, are not known. At least the
agencies did not go into details of the match to mention the many unforced
errors committed by the Pakistani racket-wielder. It is possible he may not
have been in perfect physical shape, an unavoidable necessity for such an
energy-sapping game as squash. Jansher has deferred an ankle surgery for
December-end.
Nocol said after the Al-Ahram final that in the British Open he had watched
chinks in the armour of the winner and had chalked out a full strategy to
smother the challenge of Jansher. He is a tenacious fighter. As a
left-hander some of his strokes are hard to be countered, especially the
drops are difficult to read.
One finds from match reports that Nicol, after having lost the first game,
did not allow Jansher a toehold on the front court and thus enjoyed an edge
in the skirmishes that ensued in the following three games. Certainly there
were errors of judgment on the part of the referee, which may have
flustered the Khan, but Jansher is too cagey a competitor to have found an
answer to the ploy used by the Scot. At least two games switched the other
way during the tie-breaker when a player is supposed to be very wary and
cautious. Either Jansher had become complacent after his comfortable
success against a new entrant to international squash, Alex Gough of Wales,
or he was slow in court coverage and could not produce the cornucopia of
strokes that he possesses. There were numberless lapses at critical stages,
seeing which the 3,000 spectators at the ornate squash complex near the
Pyramids of Cairo, were astonished.
Jansher's loss of lead in the fourth game was highly surprising as he was
surging ahead from a 10-4 advantage. But with the aid of the referee Nicol
retrieved the deficit and Jansher was in an uncomfortable predicament. Some
volleys went to the tin and with soaring confidence the Scot grabbed a
title which last year Jansher had taken in a match which had its own ebb
and flow against Egypt's rising star, Ahmed Barada.
Is it the start of decline of the hitherto unbeatable Jansher, many squash
fans want to know? The Khan himself still wants to win many laurels; he is
young enough and better still vigorous. He has trained his sights on the
American competitions and wants to set new records in the World Open, due
to be held in Kuala Lumpur in November. The setback in Cairo will have a
depressing effect on him; the challenge to him is growing for apart from
Rodney Eyles of Australia it is Peter Nicol whose shotplay will have to be
suppressed.
Yet Jansher can remove the flaws that developed in his game in the Cairo
final. Nicol was twice ousted by him in recent important contests - in the
British Open and in the penultimate round of the Super Series. In the
latter match in March Jansher had brushed aside Nicol in 32 minutes.
One can guess that there was lack of concentration on the part of Jansher.
He was too much involved in a war of words with the officialdom of the
squash federation in the country. The demand for electronic media promotion
of the game appears logical and correct but what is the fault of the
federation? He can directly press the top executives of the TV channels in
the country. Or he can himself make a plea to the Prime Minister and his
Adviser on media co-ordination, who fortunately holds the charge of sports
as well. How the squash federation comes into the picture? Besides the
squash maestro can put forward a condition to the organizers of the
tournaments in the country to make arrangements far live telecasting of the
semifinals and final. The sponsors must come forward. Squash must get a
share in TV programs.
Jansher has rightly pointed out that the electronic media has played its
due role in Egypt and the game is on the march in the north African
country. Ahmad Barada, not yet out of his teens, toppled Rodney Eyles of
Australia in a four-game tussle, in which the latter, globally No. 2, could
take only the first game. Then the Egyptian's clinical volleying sent Eyles
down and out. The Australian is a hardened campaigner. The victory must
have bolstered the competitive assurance of Barada.
The ouster of Zarak Jahan in the first round was sorrowful; the
deficiencies in his game-plan must be removed for the other tournaments
approved by the Professional Squash Federation.
Zubair, the younger brother of Zarak, lost to Nicol at the pre-quarterfinal
stage of Al-Ahram after a stiff resistance. Blazing shots came from the
racket of the younger Jahan, especially in the second game, though he had
to bow to the tidy command of strokes of the Scot, the ultimate winner of
the tournament. The federation or perhaps Jansher should see to it that the
skill and style of Zubair are further honed in the interest of the
country's squash.
Jansher will hopefully be more serious and steady in future matches in
world competitions.
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970628
-------------------------------------------------------------------
Pakistan to host ninth SAF Games in 2001
-------------------------------------------------------------------
Ilyas Beg
LAHORE, June 27: The ninth SAF Games will be organised by Pakistan in the
year 2001. This was decided by the South Asian Sports Federations (SASF)
executive committee which met in Kathmandu recently.
The Pakistan Olympic Association (POA) president Syed Wajid Ali Shah and
its secretary-general Muhammad Latif Butt (who attended the meeting)
jointly addressing a crowded Press conference at the Olympic House on
Friday evening said that after a detailed discussion, the committee decided
to allow Nepal to host the eighth SAF Games at Kathmandu in 1999. The dates
of these games would be decided in the next SAF executive committee meeting.
Muhammad Latif Butt said that Nepal had originally promised to host the
eighth SAF Games from September 20 to 30, 1997. It wanted to postpone them
to April, 1998. But during the meeting it was pointed out that that would
be a violation of the constitution which made it mandatory not to hold the
SAF Games during the year of the Asian Games and the Commonwealth Games.
The former were being organised in Bangkok and the latter in Kuala Lumpur
during 1998. Moreover, second Women's Islamic Countries Solidarity Games
were also scheduled to be held during 1998. So, it would not be possible
for Pakistan and some other countries to take part in the SAF games in
Nepal in April, 1998. He added that Bangladesh wanted to hold the eighth
SAF Games in December, 1997 at Dhaka provided Nepal offered her apology and
requested that country to host the them.
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