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CONTENTS ===================================================================
NATIONAL NEWS + New rates of interest for dollar bonds + Reshuffle in top bureaucracy: Dar given finance ministry + US-Pakistan talks run into snags + Governor's rule challenged in Supreme Court + Nawaz not satisfied with pace of Ehtesab + Major administrative shakeup in Sindh + Hakim Said's murder case: PM's remark comes under fire in Senate + Nawaz hopes Senate will pass CA-15 + Muttahida MPs names not on ECL + WAPDA workers protest against privatization + Construction of motorway in two years --------------------------------- BUSINESS & ECONOMY + $ bonds can be used to raise rupee loans + Record rice export may fetch $810 million + Inter-bank rates cross Rs57 mark + Govt borrows Rs26.42bn from banks + Terms of reference for IPPs committee issued + CBR levies fixed tax on jewellers: APJGA + Non-receipt of due payments: BoE asks banks for prompt reports + No default on servicing of loans: WB + Downsizing in MNCs to improve profitability + Stocks witness dull trading due to cricket match --------------------------------------- EDITORIALS & FEATURES + What now? Ardeshir Cowasjee + Back to the barricades Irfan Husain ----------- SPORTS + Pakistan thrash Germany to meet Holland in final + Akram, Malik appear before PCB probe committee + Jahangir for Germany today to contest WSF post

New rates of interest for dollar bonds
Ihtasham ul Haque

ISLAMABAD, Nov 6: The government here on Friday announced revised 
interest rates of 4, 3, 2 per cent over LIBOR for dollar bonds of 
7-, 5- and 3-year maturity.
These would be bearer bonds, and profits on them would be paid in 
dollars every six months at the rates fixed. On maturity, the 
principal amount would also be paid in dollars. The rates and rules 
regulating the new bond scheme are expected to induce the black 
money holders to whiten their holdings.
Prime minister Nawaz Sharif told a select gathering of bankers and 
businessmen at the launching ceremony of the new bond scheme that 
his government attached the highest priority to the job of 
restoring what he termed the "shattered confidence" of the 
According to the details announced by Mr Sharif, there will be a 
six-month London Inter Bank Offered Rate (LIBOR) plus 2 per cent 
interest rate for bonds of three-year maturity. And for bonds of 5-
year maturity, 6-month LIBOR plus 3 per cent interest rate will be 
offered on 5-year maturity of bonds, and 6 months LIBOR plus 4 per 
cent interest rate will be extended on the maturity of 7-year 
"From tomorrow dollar bonds will be available in all the banks and 
could be purchased by anybody", the prime minister said.
These bonds could be encashed in Pakistan currency before the 
encashment date at the prevailing official rate. These bonds would 
be exempt from wealth and income tax. And no questions would be 
asked about the source of these bonds. If encashed before or on due 
date in Pakistan currency, no wealth tax will apply to the amount 
and no questions about source would be asked.
These bonds could be used as collaterals for bank loans, for the 
purchase of public enterprises and banks now being privatized and 
could also be traded on the stock exchanges. If a bond is encashed 
within one year from the date of issue, no profit will be paid to 
the bond holders and any profit paid would be recovered at the time 
of the encashment of the bond. If a 7-year bonds is encashed within 
5 years of issue, the rate of return will be the same as that of 5 
year-bond. If a 5-year bond is encashed within 3 years of issue, 
the rate of return will be the same as that of 3-year bond and the 
excess profit, if paid, will be recovered at the rate of 
encashment. "These new concessions will also be available to even 
those who had purchased American bonds, from their frozen foreign 
currency accounts, after 22 July 1998," Mr Sharif said.
According to details, 1: New rules have been framed to be called 
the Special US Dollar Bonds Rules, 1998.
2. These rules shall apply to the Special US Dollar Bonds issued in 
the denomination of $100, $1,000, $10,000 and $100,000 for a period 
of three, five and seven years from the date of issue.
3. The bonds will be registered or bearer bonds.
4. (i) Foreign currency account holders or foreign currency 
certificates of investment holders with the scheduled banks or non-
bank financial institutions shall be entitled to purchase these 
bonds out of their foreign currency deposits.
(ii) Holders of US dollar bearer certificate issued under the US 
dollar bearer certificate Rules 1991, and Five- year Foreign 
currency Bearer Certificates issued under the Five years Foreign 
currency Bearer Certificates Rules, 1992 and Three years Foreign 
Currency Bearer Certificates issued under the Three Year Bearer 
Certificate Rules, 1998 shall also be entitled to purchase these 
bonds in exchange for the certificates.
(iii) In addition, the bonds may be purchased on payment of the 
value in US dollar provided the amount so paid does not represent.
(a) any foreign exchange borrowed under any general or special 
permission given by the State Bank of Pakistan under sub-section 
(I) of section 4 of the Foreign Exchange Regulation Act, 1947 (VII 
of 1947);
(b) any payment from abroad for goods exported from Pakistan;
(c) proceeds of securities sold and issued to non-residents;
(d) any payment received from abroad for services rendered in or 
from Pakistan;
(e) earnings or profits of the overseas offices or branches of 
Pakistani firms and companies including banks: and
(f) any foreign exchange purchased from an authorised dealer in 
Pakistan for any purpose.
6. These bonds shall be issued to the foreign currency account 
holders of foreign currency certificates or investment holders by 
the respective scheduled banks or Non-Bank Financial Institutions 
each one of which shall be called "Issuing Authority" and each of 
their offices called "Office of Issue" 7. (i) These bonds purchased 
under these rules shall be exempt from the levy of wealth tax for 
the period for which such bonds are held or until maturity of such 
(ii) Assets created out of the sale proceeds of the bonds by the 
original registered holder shall be exempt from levy of wealth tax 
for a period of six years reckoned from the year in which such 
bonds were converted from foreign currency accounts or deposits and 
the following five years.
(iii) The immunities available to the foreign currency accounts 
under the Protection of Economic Reform Act. 1992 (XII of 1992), 
shall apply to the bonds issued under these rules,
(iv) The immunities available under the US dollar Bearer 
Certificate rules, 1991. Five Years Foreign Currency Bearer 
Certificate Rules, 1992 and Three Year Foreign Currency Bearer 
Certificates Rules, 1998 shall apply to the Bonds issued under 
these rules in exchange for such prescribed form.
(v) Assets created out of the enhancement of bearer bonds shall be 
exempted from levy of Wealth Tax for a period of six year reckoned 
from the year in which such bonds were encashed subject to the 
condition that a certificate of encashment is obtained from the 
issuing bank in the prescribed form.
8. The investment made in these bonds shall be exempted from income 
tax. Exemption from levy of income tax on its profit and deduction 
of Zakat shall also be available to holders of these bonds for as 
long as these bonds are held by them.
9. There shall be no maximum limit for the purchase of these bonds.
10. The face value of the bonds shall be encashable on maturity in 
US dollars or Pakistani rupees at the prevailing official exchange 
11. (I) Profit shall be payable on these bonds on completion of 
each period of six months reckoned up to the date of maturity or 
encashment whichever is earlier. The profit on these bonds shall be 
payable at the following rates, namely:- a) For bonds of 3 years 
maturity  6 months LIBOR on the day preceding the date of payment 
plus 2 per cent. b) For bonds of 5 years maturity  6 months LIBOR 
on the day preceding the date of payment plus 3 per cent. c) For 
bonds of 7 years maturity  6 months LIBOR on the day preceding the 
date of payment plus 4 percent.
Responding to a question the prime minister said he did not have 
any idea how much dollar could be collected from the scheme. " But 
my hope is that we will have lot of dollars specially from the 
overseas Pakistanis.
Prime Minister's adviser on finance Dr Hafiz Pasha, minister for 
commerce Ishaq Dar and the presidents of banks and other officials 
were also present during the ceremony.

Reshuffle in top bureaucracy: Dar given finance ministry
M. Ziauddin

ISLAMABAD, Nov 6: Federal commerce minister Ishaq Dar was finally 
given the charge of finance ministry on Friday, putting to rest 
speculation about his impending assignment.
According to a notification of the cabinet division, issued here 
late night, the prime minister has allocated, with immediate 
effect, the portfolio of the ministry of finance, economic affairs 
and statistics division to Ishaq Dar. He will continue to hold the 
portfolio of the minister of commerce.
At the same time the federal government announced large-scale 
reshuffle in the top bureaucratic hierarchy in the ministries of 
finance, commerce and the Central Board of Revenue.
In what appears to be a serious departure from convention, a 
retired civil servant, Khalid Javed, has been made finance 
secretary in place of incumbent Moin Afzal who has been asked to 
report to the establishment division.
Mr Javed, before his retirement, had also served as federal finance 
secretary during the first tenure of prime minister Nawaz Sharif. 
After his retirement he served as principal of Staff College and 
then as chairman of WAPDA. At present he is serving as 
administrator of Civil Service Academy. Moin Afzal awaits new 
Additional finance secretary Ghafoor Mirza has been promoted to 
grade 22 and made special secretary of finance.
Dr Hafiz Pasha, adviser to the prime minister on finance, continues 
in his position.
Commerce secretary Iqbal Fareed has been made CBR chairman and the 
services of incumbent chairman Moinuddin Khan has been handed over 
to the Punjab government.
Additional commerce secretary, Mohammad Suleman has been given the 
charge of the ministry. Export promotion bureau vice chairman Qamar 
Baig has been promoted to grade 22 and made chairman of Steel 
Zafar Altaf, agriculture secretary, has been asked to report to the 
establishment division and Mumtaz Ali, member, Customs, has been 
made member of national tariff commission and the incumbent member 
of national tariff commission, Anwer Ali, has been brought in his 
place as member (Customs) of the CBR.
Sindh chief secretary Tasneem Ahmad Siddiqui has been promoted to 
grade 22 and his services will remain at the disposal of the Sindh 
government. A new secretary of information for Sindh is being 
appointed in place of Aftab Memon, who is said to be on transfer.

US-Pakistan talks run into snags
Shaheen Sehbai

WASHINGTON, Nov 6: Top level talks between US and Pakistan appeared 
going nowhere after the sixth round of negotiations in Washington 
as foreign secretary Shamshad Ahmed confirmed that there were "some 
basically substantive divergences in approach and thinking between 
the two sides on nuclear issues."
Pakistan said categorically after the talks that unless the 
atmosphere of coercion is removed Islamabad will not sign the CTBT 
and Mr Shamshad stated clearly that this included removal of 
military sanctions imposed by the Pressler Amendment and resolution 
of the F-16 issue, besides lifting of economic sanctions.
The US is not ready to even consider removing military sanctions 
until the Congress sees "sufficient progress toward non-
proliferation" by Pakistan and accordingly the waiver authority 
given to the president does not include the defence side.
After two days of intense negotiations with US officials, the 
foreign secretary and the Pakistani ambassador Riaz Khokhar jointly 
faced the Washington-based Pakistani Press on Thursday afternoon, 
answering a battery of probing questions on the nature of their 
talks, the expectations from the PM's visit both in Pakistan and 
the US and what should be expected between now and Nawaz-Clinton 
meeting in December.
The secretary cautioned against high expectations from Prime 
Minister Nawaz Sharif's December visit to the White House.
What clearly emerged from their briefing was that the two sides 
were sticking to their guns firmly and the best that should be 
expected from Mr Nawaz Sharif's Washington visit would be the 
"beginning of the ending of the atmosphere of coercion."
"Don't take your expectations to the sky when you know that there 
are basically some substantive divergences in approach and 
thinking. Given the present situation, expectations should be kept 
at a realistic level. Don't think that something great will emerge. 
Such state visits are successful if they open up opportunities. Let 
us hope that the visit provides an opening to new opportunity to 
enhance our relationship," Mr Ahmed said.
A brief written statement issued at the briefing said the talks 
between Mr Ahmed and Mr Talbott were held in an atmosphere of 
understanding and warm friendship and the two sides carried out "a 
detailed review of the whole range of bilateral relations, 
particularly the steady progress made in the on-going dialogue over 
security and non-proliferation issues."
The statement said both sides agreed to continue their dialogue 
with a view to reconciling Pakistan's vital security concerns and 
non-proliferation objectives of the US, but Mr Ahmed told 
journalists no more talks were scheduled between now and the PMs 
official visit in December.
"Have you agreed on all issues to be discussed and have 
understandings been reached already if no more talks are to be 
held," Mr Shamshad and ambassador Khokhar were asked by a 
journalist. "This is a googly," Khokhar said laughing off the 
Bits and pieces of the nature of talks and their outcome emerged 
from the cross questioning done by journalists.
"What step are needed for removal of the atmosphere of coercion," 
the secretary was asked.
"It includes green signals by the US to the IMF, World Bank, Asian 
Bank and other IFIs. Then removal of Pakistan specific sanctions, 
all sanctions, including Pressler sanctions. We perceive this as 
coercive atmosphere because the very existence of these sanctions 
has had an adversary effect over the years on Pakistan's strength 
not only economic but militarily fields," he said.
Asked to comment on the State Department spokesman's comments that 
the US wanted to "nail some commitments", the secretary said it was 
their position but Pakistan had made no commitments other than the 
UN speech of the prime minister which was very clear.
Is there an impasse in the talks, he was asked. "We don't describe 
it as this. No commitments were made. We have made our position 
very clear. We have to protect our national interest. When we 
believe our interests are secure, then we will go ahead."
Ambassador Khokhar chipped in. "There is never an impasse unless of 
course we are facing a firing squad."
Asked what was Pakistan expecting from the Nawaz Sharif visit, Mr 
Shamshad Ahmed said: "Any significant step that removes the current 
coercive atmosphere. If that becomes possible it would be progress. 
If we can get a solution of F-16 issue, that would be progress."
Mr Khokhar added: "The resolution of the F-16 issue does not mean 
return of the old planes. If we have to get the planes they have to 
be upgraded models. not the seven year olds."
Mr Ahmed said: "It is difficult to say it at this stage what will 
come out of the visit but anything which can constitute a 
significant step towards removal of coercive atmosphere, will mean 
Governor's rule challenged in Supreme Court

ISLAMABAD, Nov 6: The imposition of governor's rule on Sindh by the 
federal government was challenged in the Supreme Court in Islamabad 
on Friday.
Syed Iqbal Haider of Muslim Welfare Movement filed a petition and 
officials at the Supreme Court confirmed it.
His earlier attempt, challenging the federal government's decision, 
failed when the Supreme Court's Karachi registry returned his 
petition with objections.
In his petition the MWM chief contended that the Sindh situation 
demanded imposition of governor's rule under Article 234 and 
holding of transparent elections after dissolution of the 
provincial assembly.
He stated that by imposing governor's rule under Article 232 (2) 
(C) the federal government had kept the Sindh Government alive for 
the purpose of horse trading.
He stated that when the provincial assembly came into existence, 
the PPP emerged as the largest party by securing 35 seats, followed 
by the MQM with 28 seats and the PML secured only 16 seats. He said 
the coalition government of PML and MQM failed and the 
circumstances demanded that opportunity should be given to the PPP 
to form the government along with others.
He further contended that the governor's rule was not signed by the 
President instead it was signed by a secretary cabinet.
He asked the court to examine whether the secretary had the power 
to sign the proclamation order, depriving the chief minister of his 
He said it was a settled law that in the presence of special 
provision, general provisions were not invoked. 
The petitioner said the governor's rule was imposed on Sindh under 
the general provision [article 232 (2)(C)] despite the fact that a 
special provision [Article 234] was there.
He prayed the court to declare the federal government's order of 
30.10.98, illegal, void and against the fundamental rights of the 
people of Sindh. He also prayed the court to suspend the operation 
of order till the decision of his petition.

Nawaz not satisfied with pace of Ehtesab
Ashraf Mumtaz

LAHORE, Nov 5: Prime Minister Nawaz Sharif has reportedly expressed 
his complete dissatisfaction with the on-going accountability 
process because not a single case against important political 
leaders has so far been decided and none is expected to be decided 
in the near future.
His aides are discussing possible ways and means to expedite the 
process and an important proposal under consideration is that the 
chief justices should be approached with the request that the 
pending cases should be decided as early as possible.
There is, however, no move about the cases against Mr Sharif and 
other people belonging to the ruling party.
The Ehtesab Bureau chairman had said a few months ago that 
decisions on cases against former prime minister Benazir Bhutto and 
her husband Asif Zardari would start coming during the next few 
months (i.e. tentatively by now). However, no case is even near 
Cases against other important people are also expected to take 
quite some time to decide. And once these are decided by the 
ehtesab benches of high courts, appeals before the Supreme Court 
would take quite some more time for adjudication.
Experts say that no legislator against whom references are pending 
is expected to lose his or her assembly seat in the foreseeable 
Accountability process was started with the promulgation of an 
ordinance immediately after the dismissal of the PPP government in 
November 1996. However, the accountability laws were drastically 
amended by the PML government which deprived the Chief Ehtesab 
Commissioner of many of his powers. Many vital powers were given to 
the newly created body Ehtesab Cell, subsequently renamed as 
Ehtesab Bureau.
Informed official sources told Dawn on Thursday that several 
reasons were responsible for the slow pace of accountability. It is 
said that there is not much coordination between the Chief 
Accountability Commissioner and the Ehtesab Bureau, and at times it 
appears as if the two institutions are working at cross-purposes.
The Ehtesab Bureau is supposed to be subservient to the CEC. 
However, the factual position is quite different. The CEC mostly 
does not know what the Ehtesab Bureau is doing or which cases it is 
planning to take up for investigation. There are reports that it is 
the Ehtesab Bureau and not the CEC which is calling the shots. All 
matters like appointment of lawyers to prosecute various cases, 
fixation of their fees and even preparation of guidelines for them 
are decided by the EB.
It is said that the CEC is not satisfied with the performance of 
many of the lawyers and he is reluctant to pay the amount of fees 
proposed by the EB.
The extent of coordination between the two organizations  CEC and 
the EB  can be gauged from the fact that the EB has taken no 
action on cases of over a 100 bureaucrats despite reminders by the 
The CEC, it is said, had also sought details of cases pending 
against a former Balochistan chief minister. However, the CEC was 
informed that no record was available with the EB.
The CEC had to send a strongly-worded letter to the EB to get the 
file. Some quarters say that the CEC had warned that he would 
initiate contempt proceedings against the relevant people in case 
he was not provided the record.
It is not yet clear whether the record has been made available to 
the CEC or whether the CEC plans to take any action in the light of 
his letter.

Major administrative shakeup in Sindh
KARACHI, Nov 3: In a major administrative shakeup, the Sindh 
government has effected large-scale transfers and postings, 
including the divisional commissioner and four deputy commissioners 
in Karachi Division. However, Javed Hanif, the deputy commissioner 
of district Central, has been retained at his present post for the 
time being.
These changes, to be effective immediately, have been made in the 
light of the decisions taken at a high-level meeting presided over 
by Governor Moinuddin Haider who has been put in the driving seat 
after the dismissal of the Jatoi government on Oct 30.
Governor Haider, after assuming the new responsibility, had called 
for a list of officials in order to make necessary changes in the 
administrative setup with the aim of bringing to the fore such 
officials as could deliver the goods.
He also made his intention public that after changes in the civil 
administration, he would pay attention to the organizations 
responsible for providing civic services which have lately come 
under much public criticism for mismanagement and for their failure 
to provide facilities to people. Such civic agencies are KESC, 
According to the notification issued on Tuesday evening, the 
following transfers and postings have been effected:
Shafiq-ur-Rehman Paracha, an officer of ex-PCS (Grade 20) working 
as Secretary Excise and Taxation, has been transferred and posted 
as the Divisional Commissioner of Karachi replacing Mir Hussain Ali 
who was asked to report to the Services and General Administration 
Department (S&GAD).
Khusro Pervaiz Khan, a DMG officer (BPS-19), Secretary (Survey) 
Board of Revenue, Sindh, stands transferred and posted as Deputy 
Commissioner of district East vice Shoaib Ahmed Siddiqui 
transferred and asked to report to S&GAD.
Sualeh Ahmad Farooqi, a DMG officer (BPS-19), Director Protocol, 
S&GAD, was transferred and posted as Deputy Commissioner, district 
South, vice Mushtaq Ali Memon transferred and directed to report to 
Tariq Hussain Niazi, a DMG officer (BPS-18), ADM district West, has 
been transferred and posted as Deputy Commissioner, district West, 
vice Amir Ali Behan transferred and asked to report to S&GAD.
Muhammad Yunus Daga, a DMG Officer (BPS-18) Deputy Commissioner, 
Khairpur, has been transferred and posted as Deputy Commissioner 
Malir, vice Khursheed Naeem Malik transferred and asked to report 
to S&GAD.
Muhammad Salim Khan, a DMG officer(BPS-20) working as Secretary 
Industries, Commerce and Mineral Department, stands transferred as 
Secretary Excise and Taxation vice Shafiq-ur-Rehman Paracha. 
However, he will continue to look after the Department of 
Industries and Mineral Department.
Syed Ghulam Nabi Shah, an officer of provincial judiciary (BPS-20) 
presently posted as District and Sessions Judge, Ghotki, has been 
transferred and posted as Secretary to Government of Sindh, Law 
Department vice Ali Ahmed Junejo transferred and asked to report to 
High Court of Sindh.
Muhammad Sharif, a DMG officer (BPS-20) Secretary Social Welfare 
and Women Development and Environment Department, has been 
transferred and posted as Secretary, Health Department, relieving 
Dr A. R. Bughio, Additional Secretary Health (Technical) of the 
additional charge. Muhammad Sharif shall continue to look after the 
work of the post of Secretary, Social Welfare and Women Development 
and Environment Department.
Dr A. R. Bughio, Additional Secretary (Technical) Health 
Department, has been transferred and asked to report to S&GAD.
On promotion to the rank of Deputy Inspector-General of Police 
(BPS-20) Farooq Amin Qureshi, an officer of the PSP, has been 
posted as DIG Police, Karachi Range, vice Syed Mushtaq Ahmed Shah 
transferred and directed to report to S&GAD.
Dr Amir Ahmed, a DMG Officer (BPS-18) Deputy Secretary (Cabinet) 
S&GAD, has been transferred and posted as Director Protocol, S&GAD, 
vice Sulaeh Ahmed Farooqui transferred.
Iqbal Ahmed Solangi, an officer of Education, Government of 
Pakistan, Additional Secretary/ Director General, Excise and 
Taxation Department, has been repatriated to the federal government 
and directed to report to Establishment Division, Government of 
Pakistan, as his services are no more required.

Hakim Said's murder case: PM's remark comes under fire in Senate
Mohammad Yasin

ISLAMABAD, Nov 4: The Senate on Wednesday started a debate on the 
imposition of governor's rule on Sindh for curbing terrorism and 
restoring peace to Karachi.
Initiating the debate on the issue, Muttahida Qaumi Movement 
Senator Aftab Sheikh took the wind out of the plea taken by the 
prime minister that governor's rule had been imposed on the basis 
of the confessional statement of Aamirullah, accused in Hakim Said 
murder case.
Mr Sheikh said that the Advocate General of Sindh had told the 
Sindh High Court when the habeas corpus petition, moved by the 
accused's mother came up for hearing on Wednesday, that Aamirullah 
had made no confessional statement pertaining to the murder of 
Hakim Said.
He said that this had taken the wind out of the prime minister's 
one of the reasons that led to the imposition of governor's rule.
In all, seven senators participated in the debate. During the 
speech of the Minister of State Capt Haleem Siddiqui on the issue 
there was a constant interruption by MQM Senator Mustapha Kamal 
Rizvi whom the chair, Mir Zafarullah Khan Jamali, reprimanded. He 
warned the sen not to speak when the chair was taking the floor. On 
one occasion, the chair warned Rizvi that he could ask him to leave 
the House if he kept on flouting the rules.
By and large the senators listened to the speeches calmly except 
when Mr Siddiqui referred to the clean up operation by the PPP 
government in Karachi and cited the custodial deaths on the basis 
of which its government was dismissed.
The PPP senators made a slight attempt to boo the speaker.
Aftab Sheikh condemned the imposition of the governor's rule on 
Sindh and accused the prime minister of wanting to crush the MQM 
with the assistance of agencies for achieving several objectives.
He accused the PM of defaming and maligning the MQM and added that 
malafide use of Article 232 had been made for enforcing the 
governor's rule. Enumerating various reasons for imposing the 
governor's rule he cited among them usurping the resources of the 
province, grabbing the mayorship of Karachi, winning the local 
bodies polls in the province, holding fresh elections to the Sindh 
Assembly and increasing the present PML strength in the house.
He said the aim of the government was to hold hostage the people of 
Sindh because they had formed consensus on the sharing and 
protecting their natural resources. 
He said the action against the MQM was taken because it had refused 
to side with the government on the CA-15. He said incidents of 
murders and mayhem were order of the day in the Punjab but why the 
government was not imposing governor rule there.
He referred to the killing of a religious scholar in Islamabad but 
no action had been taken so far.
Deputy opposition leader Mian Raza Rabbani, taking part in the 
debate, described the situation as serious saying that Sindh 
squirms under the heels of the imposition of the governor's rule. 
He said that even after that the innocent people were being killed 
in Karachi.
Rabbani said the situation in Sindh was the outcome of the 
political expediency of the prime minister. He said the government 
freed the terrorists on parole against the advice of the law-
enforcement agencies. He alleged that the PM had carried out 
demoralisation of the law enforcement agencies. The personnel of 
the law enforcement agencies, he added, were being picked up and 
He wondered now the ruling party had the audacity of talking of 
their concern over the deteriorating law and order situation after 
striking compromises with the terrorists and paying them millions 
of rupees' compensation.
Mr Rabbani questioned how the PM gave three days warning to the 
terrorists to surrender. He said that this was being done with 
something ulterior motives.

Nawaz hopes Senate will pass CA-15

MINGORA, Nov 4: Prime Minister Nawaz Sharif has said that with the 
support of the people his government will be able to get the CA-15 
through the Senate even though his party did not enjoy majority in 
the upper house. 
The bill, he said, had already been passed by the National Assembly 
with an overwhelming majority.
Addressing public meetings at Bisham and Kalam, two remote areas of 
Swat, on Wednesday, Mr Sharif regretted that some people were 
opposing the bill, and gave an assurance that after the passage of 
the bill the Shariat would be enforced in the country, that being 
the demand and the aspiration of the people of Pakistan which had 
been secured in the name of Islam.
The prime minister also referred to Pakistan's nuclear tests which 
placed the country on the map of nuclear weapons countries and 
secured for it a prestigious position in the world. 
Pakistan was even a greater nuclear power than India because it had 
tested six devices at a time in disregard of pressures put by world 
powers. The tests were all the more necessary because Pakistan's 
security was at stake after Indian tests.
Mr Sharif said that welfare of the people was dear to him and it 
was for that reason that he decided to reduce power rates by 30 per 
cent in spite of the World Bank and IMF pressure who had asked for 
a further 25 per cent increase in electricity charges. 
The measure would certainly achieve the objective of lessening 
people's economic hardships, he remarked.
Earlier, at Bisham the prime minister was briefed about the 
problems of the people of the area.
On this occasion he announced a grant of Rs100 million for the 
construction of Bisham-Khwaza Khela Road. He also sanctioned Rs20 
million for the provision of potable drinking water and 
installation of a TV booster for the area.
Mr Sharif announced electrification of 20 villages in the area 
beside asking for expeditious completion of work on new telephone 
He also ordered installation of a grid station at Thakot. Other 
development schemes announced by the prime minister included 
building of roads from Kalam to Mahodand and Kalam to Gujral, 
establishment of a degree college at Madyan and construction of 
road from Saidu Sharif to Kalam.
The prime minister was accompanied by chief minister Sardar Mahtab 
Ahmad Khan, federal minister Sh Rashid Ahmad, MNA Shujaat Ali Khan, 
provincial minister Mian Anwar Ali and MNA Adnan Aurangzeb. 
The public meetings were also addressed by Shaikh Rashid Ahmad who 
severely criticized the opposition for, what he called, its 
destructive role in national politics.

Muttahida MPs names not on ECL
Bureau Report

ISLAMABAD, Nov 4: The immigration authorities have refused to have 
the names of MQM parliamentarians on the exit control list (ECL).
Sources in the FIA immigration told Dawn here on Tuesday that after 
the imposition of governor's rule only seven names of those who are 
allegedly involved in Hakim Said murder case, were added to the 
These sources said that the names of MQM senators, MNAs and MPAs as 
reported in the newspapers, have not been put on the ECL.
The seven names which were added after the imposition of governor's 
rule include MQM MPA Zulfiqar Haider, ex-assistant sub inspector 
police Noshad Sarwar, Arif Khan, Asif Chitta, Wahab Bhandari, Ajmal 
Pahari and Rehan.
The interior ministry also denied that it has added more names to 
the ECL. However, nothing was said about the possible addition of 
the names which are currently under consideration.

WAPDA workers protest against privatization
LAHORE, Nov 3: WAPDA employees in many parts of the country 
observed strike on Tuesday against the planned privatization of the 
Authority and other grievances facing the workers. 
The call was given by the WAPDA Hydro-electric Central Labour 
Union. The workers strongly opposed conversion of WAPDA into 
Pakistan Electric Power Company (PEPCO).
Pakistan WAPDA Hydroelectric Central Labour Union general secretary 
Khurshid Ahmad has alleged that over Rs1 billion are being spent on 
establishment of the Pakistan Power Electric Company to supervise 
privatization of WAPDA's power wing which was running a huge loss.
Speaking at a union rally here on Tuesday, Mr Ahmad announced a 
tool-down strike on November 24 if "meaningful" talks on the 
question of PEPCO and disinvestment of the power wing were not held 
within a "reasonable" time.
He asserted that a battery of officers was being appointed in the 
PEPCO as consultants and experts with fabulous salaries and perks. 
According to him, some of them were to get monthly emoluments as 
high as one and half a million rupees in addition to free furnished 
accommodation, vehicles, travelling and dearness allowances, 
telephones and six to 10 servants. "If we calculate the amount to 
be given to these so-called experts, it comes to millions of 
dollars and if this is invested, the power wing will turn to be 
profitable organization", he claimed.
The Lahore rally was part of the PWHECLU's countrywide protest 
campaign and, according to a Press release, workers took to streets 
in Hyderabad, Sukkur, Nawabshah, Larkana, Sibbi, Quetta, 
Bahawalpur, Multan, Sahiwal, Dera Ghazi Khan, Gujranwala, 
Faisalabad, Sargodha, Peshawar and Rawalpindi.
In Lahore, hundreds of WAPDA workers marched on Nisbet Road, Mcleod 
Road and Egerten Road and held a protest meeting in front of the 
WAPDA House. Carrying placards, they were raising slogans against 
power wing's privitization.
Construction of motorway in two years

KARACHI, Nov 2: The construction of the Rs10 billion Karachi-
Hyderabad motorway is likely to begin by the end of this year. The 
motorway will be constructed by the Fauji Foundation in two years, 
official sources in ministry of communication told PPI on Monday.

The project was approved by Prime Minister Nawaz Sharif during his 
recent visit to Karachi on Oct 15, and he earmarked Rs7 billion for 
its completion. The rest of the amount will jointly be borne by the 
Sindh government, and local civic agencies, the sources added.
Fauji Foundation plans to associate experienced construction 
companies of motorways and highways. The construction schedule is 
tight and activities numerous and require regulated and methodical 
For this purpose, Fauji Foundation plans to acquire the management 
services of consultants, and supervision consultants of 
international repute, who shell be independent entities to ensure 
quality control and quality assurance and its timely completion.
The project is planned to be completed at a cost of over Rs10 
billion with debt equity ratio of 70:30. The revenue generation is 
based on a traffic survey carried out by the NHA in March.  PPI

$ bonds can be used to raise rupee loans
Mohiuddin Aazim

KARACHI, Nov 6: A notification issued by the Finance Division on 
Friday announced that the dollar bonds would be acceptable as 
collateral for raising loans in Pak rupees. It said the 
Privatization Commission will also accept the bonds as payment 
against the assets being sold or privatized.
The notification amended certain rules governing the sale of the 
bonds scheme launched on July 22 to raise the rates of return and 
reduce their maturity periods, besides declaring them as bearer 
instrument. The notification also announced that the profit on the 
bonds would now be payable in the US dollars both to their resident 
and non-resident holders.
Previously resident holders were supposed to earn the profit in Pak 
rupees and the non-resident in dollars.
The notification said the maturity periods of these bonds would be 
3 years, 5 years and 7 years instead of 5 years, 7 years and 10 
It said 3-year and 5-year bonds would carry an annual return of 6-
month LIBOR plus 2 per cent and 6-month LIBOR plus 3 per cent 
whereas 7-year bonds would offer 6-month LIBOR plus 4 per cent per 
annum. Previously 5-year and 7-year bonds carried an annual return 
equal to 6-month LIBOR and 6-month LIBOR plus 1 per cent whereas 
10-year bonds offered 6-month LIBOR plus 2 per cent.
For the purpose of calculating the profit the 6-month LIBOR on the 
day preceding the date of payment would be taken into account. 
LIBORLondon Inter-bank Offered Rates is currently a little over 5 
per cent for six months.
The notification said the bonds would be registered or bearer bonds 
which means that the holders of these bonds can sell them in the 
market to earn premiums.
It further said that the profit on the bonds would be payable on 
completion of each period of six months reckoned up to the date of 
maturity or encashment whichever is earlier.
Previously these bonds were not bearer bonds and could not be sold 
in the market.
The dollar bonds were launched on July 22 specially for those whose 
foreign currency accounts were frozen on May 28the day Pakistan 
conducted a nuclear blast. They were given the choice to encash 
their frozen accounts into rupees at a rate of Rs 46 to a dollar or 
convert them into these bonds. But since the bonds offered very low 
rates of return on very long maturities and also lacked proper 
incentives the scheme failed to take off: the bonds attracted only 
about $35 million during a little more than three months.
Now the Finance Division has also allowed purchase of these bonds 
by the general public on payment of their value in the US dollars 
on certain conditions.
Besides the holders of Dollar Bearer Certificates and 3-year and 5-
year Foreign Currency Bearer Certificates have also been allowed to 
convert their DBCs and FCBCs into the dollar bonds.
The notification said the immunities available to the holders of 
DBCs and FCBCs would continue to apply on the bonds purchased in 
exchange of the same. It further said that the assets created out 
of the encashment of bearer bonds would be exempt from the levy of 
wealth tax for a period of six years reckoned from the year in 
which such bonds were encashed subject to the condition that a 
certificate of encashment is obtained from the issuing bank on the 
prescribed form.
The conditions set for the purchase of these bonds through US 
dollars say the amount of dollars to be used for buying of the 
bonds should not have come from foreign exchange borrowings from 
abroad or export proceeds or proceeds of securities sold and issued 
to non-residents.
The amount of dollars earned through services rendered in or from 
Pakistan, earnings or profits of the overseas offices or branches 
of Pakistani firms and companies including banks and any foreign 
exchange purchased from a bank in Pakistan can also not be used for 
buying these bonds.
Seemingly the government wants only those stocks of dollars to be 
used for buying of these bonds that were purchased from open market 
in Pakistan or amassed at home or abroad through illegal means. 
Bankers say it may help in whitening of a sizable amount of black 
money in circulation.

Record rice export may fetch $810 million
Shaukat Ali

LAHORE, Nov 6: The ministry of commerce is undertaking special 
measures to hit the target of exporting a record 2.65 million high 
quality basmati rice during the coming calendar year. 
The ministry through various offices of the Export Promotion Bureau 
in the high rice yielding regions of the central Punjab, is setting 
up centres to help rice traders prepare their consignments in line 
with the demand of the foreign markets. 
"If every thing goes normal in coming few weeks - during which 
period rice procurement from the fields will be completed and 
stored adequately - the country hopes to earn a record around $ 810 
million next year through the rice shipment. Since rice prices are 
still soaring in the international markets prospects are bright to 
earn even more from what we expect at present", ministry sources 
Rice dealers circles said that some rice importing companies from 
US and the European Union - the regions offering highest price for 
the Pakistani rice - had already booked orders from the new crop. 
They said that most of the crop in different Punjab districts had 
been harvested and the expectation was that the overall yield would 
be around 700,000 ton higher than last year's 4.4 million ton. 
"The government is also considering to advance credit to rice 
exporters who are in possession of confirmed orders for the 
shipment enabling them to accomplish the deal within the period 
agreed with the rice buyers", sources said adding that in most 
cases it were the same exporters who sold rice to foreign buyers 
this year and as such there would be not much problem in dealing 
with the enhanced shipment during the coming year. 
Pakistan's rice export this year, according to the sources, has 
crossed the 2 million ton mark.

Inter-bank rates cross Rs57 mark
By Our Staff Reporter

KARACHI, Nov 6: For the first time after the introduction of 
multiple exchange rates system on July 22, the inter-bank rates 
crossed the mark of Rs 57 per dollar on Friday.
Senior bankers told Dawn that floating inter-bank rates rose from 
Rs 56.70 and Rs 56.90 for spot buying and selling on Thursday to Rs 
57.00 and Rs 57.25 on Friday.
The State Bank composite exchange rates  based on weighted average 
buying and selling rates of selected banks  also rose to Rs 51.31 
and Rs 51.71 for buying and selling from Rs 51.21 and Rs 51.60 
The composite rates stood at Rs 49.23 and Rs 49.63 when the State 
Bank started quoting the same from Aug 1, 1998. This means a 
depreciation of around 4.2 per cent in the rupee value during a 
little more than three months97 days to be precise.
The inter-bank market has been facing a shortage of dollars 
immediately after May 28 when Pakistan went nuclear and it led to a 
decline in foreign exchange inflows. But the most immediate reason 
for the dollar shooting up in the inter-bank market is the Oct 16 
decision of the State Bank whereby importers of five essential 
items were asked to buy 50 per cent of required foreign exchange 
from the market.
Bankers cite another reason for the shortage of dollars in inter-
bank market. They say for the last few weeks some state- run banks 
are borrowing sizable amounts of dollars from the marketeither for 
their own use or to help the government meet its external foreign 
exchange obligations.

Govt borrows Rs26.42bn from banks

KARACHI, Nov 3: The government on Tuesday borrowed Rs26.420 billion 
from the money market at an average yield of 14.12 per cent through 
sale of one-year Treasury Bills.
Senior bankers said the State Bank sold the T-bills on behalf of 
the government at different rates ranging between 14.40-14.49 per 
cent. They said SBP attracted total bids worth Rs50.60 billion for 
one-year T-bills of which bids worth Rs26.42 billion were accepted 
and the rest scrapped. They said SBP also received Rs2.75 billion 
worth of bids for 3-month T-bills and Rs17.76 billion worth of bids 
for 6-month T-bills all of which were rejected.
Bankers said a US-based high-profile bank and a local private bank 
based in Rawalpindi were the two main buyers of one-year T-bills.
They said the market remained surplus with short term funds adding 
that call rates ranged between 0.25 per cent to 1.0 per cent.

Terms of reference for IPPs committee issued
Ihtashamul Haque

ISLAMABAD, Nov 3: The Accountability Bureau headed by Senator 
Saifur Rehman will continue to deal with HUBCO, KAPCO and other 
power companies which have been issued Notice of Intent to 
Terminate (NIT).
The terms of reference of the 13-member committee constituted by 
the prime minister on IPPs issue have been issued here on Tuesday 
by the PM Secretariat. The new committee headed by Sikandar Khan of 
Millat Tractors will deal with other IPPs and the new projects 
coming up in the private power sector.
"The new power committee has been excluded from the IPPs whose 
affairs were investigated by the Accountability Cell Committee 
(ACC)", said an official of the PM Secretariat. He said that the 
terms and reference of the new committee provided, "the cases which 
have already been finalized or are under investigation will be 
outside the preview of the committee".
According to the terms and reference issued by Kh. Zaheer Ahmad, 
Additional Secretary PM Secretariat, the committee will be 
responsible directly to the prime minister and will be authorized 
to request any ministry or government agency to provide information 
as asked by it.
Also the committee shall submit recommendations to the PM office 
from time to time for the resolution of the issues related to the 
IPPs. The committee was also authorized to hold discussion with 
IPPs sponsors, financing agencies or any other party associated 
with these.
The terms and reference further said the committee shall submit its 
report within 30 days and that a seven members could constitute a 
quorum. The first meeting of the committee will be held on 10 of 
this month.
However, informed sources said that the new committee or the 
Accountability Bureau would not be in a position to do anything as 
the issue of IPPs was subjudice. It was said that theAccountability 
Bureau could not be immediately sidelined as it was pursing various 
cases in courts.
Sources said that the issues related with HUBCO and KAPCO could not 
be re-opened by the Accountability Bureau as they were 
comprehensive discussed and settled between chief minister Punjab, 
Dr Hafeez Pasha and the local officials of the World Bank and the 
IMF for securing $5 billion bailout package.

CBR levies fixed tax on jewellers: APJGA

MULTAN, Nov 2: Central Board of Revenue has levied a fixed tax of 
Rs 9,000 on all the jewellers, gemstone dealers, goldsmiths and 
issued notices for payment of this tax through All Pakistan 
Jewellers and Gemstone Association.
Most jewellers said it was unexpected. Talking to newsmen here on 
Monday, Syed Abdul Rauf Shah, member of central committee of APJGA 
said that CBR had resiled from the agreement between the jewellers 
and the government on the issue of general sales tax at the rate of 
Rs 350 per tola on gold.
He said that APJGA Balochistan unit president Abdul Ghafoor had 
received notices for payment of Rs 9,000 sales tax per annum.
Explaining the details of the agreement, Syed Abdul Rauf Shah said 
that jewellers had agreed to pay 12.5 per cent sales tax on their 
net profit which was 7.5 per cent of the total cost, while 92.5 per 
cent was to be excluded as manufacturing cost and gold value. 
He further said that the Punjab government had also imposed 
professional tax of Rs 1,000 per goldsmith/jeweller and this was an 
additional burden on them. 

Non-receipt of due payments: BoE asks banks for prompt reports
Sabihuddin Ghausi

KARACHI, Oct 31: The Bank of England (BoE) has instructed all the 
banks operating in the UK to report immediately (same day) to the 
Financial Services Authority (FSA, a subsidiary institution of BOE) 
in case of non-receipt of due payments from counter parties in 
Issued recently, the significance of this BoE circular is that it 
comes amidst reports of Pakistan government building up the arrears 
of loans related payments, now totalling about 1.4 billion dollars, 
because of sinking of the foreign exchange reserves.
The government, according to market watchers, is using the grace 
period on its obligations to avoid an official default. But 
according to market analysts Pakistan government has committed a 
technical default and that is the reason of BoE's anxiety to keep 
itself posted of the situation on day to day basis.
According to this circular, the BoE directed all the banks: "The 
bank will notify Financial Services Authority (FSA) immediately 
(same day) if any payment due to you from counter parties in 
Pakistan or overseas offices of any company incorporated in 
Pakistan are not received".
"This of course covers banks head offices and all branches in 
Pakistan or branches and other banks incorporated in Pakistan or 
any other country," the circular further adds.
The BoE circular has come immediately after Pakistan government 
rescinded all amendments in the original power agreement with Hubco 
and a new tariff was fixed. Following this, the Hubco was asked to 
pay Rs 17 billion to WAPDA. The Ehtesab Commission initiated 
criminal proceedings against 12 persons including executives 
holding British nationality of the Hubco.
"Cancellation of IMF mission visit to Pakistan and BoE's directive 
to the banks are the immediate follow up steps" a banker said.
Top four Pakistani banks are maintaining about 30 branches network 
in England and have been frequently receiving advices from the BoE 
apart from an annual review mission which makes blunt observations 
on the transactions and dealings of these banks.
Besides, over two dozen foreign banks in Pakistan have also 
branches in England and are obliged to keep FSA informed on non-
receipt of due payments from Pakistan. In addition are the 
multinationals, quite many of them headquartered in England are 
giving relevant information to the central bank of their country.
"The BoE wants to keep itself update on the held up payments in 
Pakistan," a senior executive of one of the four top banks 
explained to Dawn. He was, however, unable to answer if the BoE 
would be pondering on any punitive measure whenever it feels that 
"building up arrears has now reached the default stage".
Bankers explain that the payments mentioned in the BoE circular may 
relate to servicing of loans taken by Pakistan government from 
British government agency or any private source. It may pertain to 
servicing of loan by the private Pakistani or foreign company in 
Pakistan. This held up payment may be in lieu of services or goods 
given by British-based firm to government or private company in 
Pakistan. It may even be the repatriation of profits by the private 
companies in Pakistan to British shareholders.
Stock brokers estimate 70 to 80 million dollars related to foreign 
funds in the stock exchange are being held up for remittance for 
want of foreign exchange reserves. "From a peak 1.5 billion dollars 
foreign funds the amount is now reduced to hardly 200 million 
dollars," a leading stock broker explained.
According to the bankers, the economy was thrown into back gear on 
May 28 and was given a further push backward by mishandling the 
Hubco and the IPP issue. The final blow came when a 30 per cent cut 
was announced on electricity bills for domestic consumers as a 

desperate move to gain some mass popularity much to the anger of 
IMF and World Bank.
Bankers now feel that a serious rethinking on what had happened so 
far after May 28 is going on in Islamabad and government's 
continued dialogue with the IMF and World Bank through Islamabad-
based representatives is a clear pointer towards that direction.
Market analysts now believe Pakistan government having reached a 
broad understanding with the IMF on obtaining a 5 billion dollar 
salvage package. "Reports of an IMF mission coming to Pakistan is 
an indicator to that," a stock broker said.
Electric power tariff adjustments are expected to be made by the 
NEPRA by March 1999. Implementation of these pre-conditions should 
form the basis of renewed discussions for a bailout package. 
Devaluation of Pakistani rupee, another pre-condition for a bailout 
package, according to this report would be done in a gradual manner 
by changing the composite exchange rate for imports from 50 per 
cent officially fixed rate to 25 per cent. It means that importers 
will have to obtain 75 per cent foreign exchange from the inter-
bank floating market which is already under mounting pressure and 
only 25 per cent from the government's foreign exchange reserves.

No default on servicing of loans: WB
Bureau Report

ISLAMABAD, Oct 31: Pakistan has so far not defaulted on servicing 
of loans of International Bank for Reconstruction and Development 
(IBRD), and International Development Association (IDA), a 
spokesperson of World Bank said on Saturday.
"Pakistan has continued to service its IBRD and IDA payments within 
the allowable time-frame," the spokesperson said.
Responding to some report the bank clarified that the bank's board 
at its meeting on last Wednesday was informed about the government 
of Pakistan reform programme to address macro-economic and 
structural problems.
The board was also apprised about the on-going discussions between 
the government of Pakistan and the bank on its support for the 
reform programme.
The spokesperson clarified that work on projects in the pipeline 
and on-going projects is proceeding normally and bank's support to 
Pakistan would continue as planned, provided reform programme 
remains on track, project implementation is satisfactory and 
Pakistan continues to be a borrower in good standing.

Downsizing in MNCs to improve profitability
Aamir Shafaat Khan

KARACHI, Nov 4: A number of multinational companies are considering 
adopting cost cutting measures like downsizing, restructuring to 
sustain and increase profitability, sources said.
Shell Pakistan is actively surmising to cut manpower cost by up to 
30 per cent, these sources added.
Sources in oil industry told Dawn that a meeting was held on last 
Friday to discuss at length reduction of manpower and it was 
decided to finalize redundancy plans by December 15, 1998. The 
meeting was attended by senior management. They said at least 140-
150 staff members out of 650 may be affected. Sources added that 
staffers are a bit panicky over the development and there is a 
likelihood that the axe may fall on staffers who had been rendering 
service since the Shell was known as Pakistan Burma Shell (PBS).
For instance, they said in case if a section head has three 
staffers than one may have to go, finally.
They added that Shell has accommodated seven expatriates in top 
posts, whose salaries and perks are in millions, accounting for 35-
40 per cent of total manpower cost.
The audited accounts of Shell for 1997-98, however, does not 
present a gloomy picture as profit after taxation stood at Rs591 
million compared to Rs543 million in 1996-97. Administrative and 
marketing expenses excluding depreciation increased from Rs893.3 
million to Rs929.9 million, showing a rise of 4.1 per cent compared 
to an increase of 25.6 per cent in the previous year.    
In another development, the new management of Hinopak Motors 
Limited (HML) has also introduced Golden Handshake Scheme (GHS) 
from November 2 and the last date to opt the scheme is November 16.
The company has already relieved about 250 staffers in the last one 
and a half years owing to depressed market situation for heavy 
In 1997-98, the company suffered a loss of Rs246 million after 
taxation compared to 1996-97 while its sales recorded at 907 
million compared to Rs2.35 billion in 1996-97. The sales in 1995-96 
stood at Rs2.6 billion.
A voluntary separation scheme in Philips Pakistan is currently 
continuing since last one and half month. Sources said that about 
140 persons have already opted for the scheme.
The un-audited half yearly report of Refrigerator Manufacturing 
Company Pakistan, which is a Philips company, for 1998 said that 
lower sales and profits were the outcome of the depressed market 

Stocks witness dull trading due to cricket match
By Our Staff Reporter

KARACHI, Nov 6: Stocks passed through a dull trading session on 
Friday as investors kept to the sidelines most of the time despite 
good dividend announcement from Millat Tractors and Cherat 
Papersack at the rate of 85 and 100 per cent for the last year 
ended June 30, 1998.
The sluggishness was partly attributed to Friday and partly to one 
day cricket match between Pakistan and Australia here. Leading 
brokers and agents remained virtually busy watching the match on TV 
and the trading hall presented a deserted look, notably after mid-
session when Pakistani players went into batting.
The opening in the morning session was a bit steady, thanks to 
renewed buying in the pivotals, and as a result the KSE 100-share 

index was up 10 points. Later it showed either-way movements amid 
alternate bouts of buying and selling, finally ending around 857.58 
as compared to 857.70 a day earlier, showing a fractional decline 
of 0.12 points.
Turnover figure fell to a record low of 30 million shares from the 
previous 54 million shares as brokers and jobbers withdrew to their 
offices to watch the cricket match.
The trading activity in part was also affected owing to a long 
weekend ahead as the market will also remain closed on next Monday 
on account of Iqbal Day holiday, Saturday and Sunday being official 
However, gainers held a modest lead over the losers at 38 to 34 
with 38 shares holding on to the last levels amid a terribly low 
trading session.
Share values of both, however, showed smart gains, rising by Rs 
7.00 and Rs 6.75 at Rs 57.00 and Rs 33.75, on stray support 
prompted by the perception that their share values could rise 
further on renewed buying.
Plus signs again dominated the list under the lead of blue chips, 
leading gainers among them being Dawood Hercules, one of the top 
performer among the top 25 listed companies, Engro Chemical and 
Shell Pakistan, which posted gains ranging from Rs 2.00 to Rs 5.50.
They were followed by Ghandhara, Pakistan Gum, Bolan Castings and 
some others, which rose by Rs 1.15 to Rs 1.90 amid slow trading.
Big losers were led by Lever Brothers, which came in for active 
selling and fell by Rs 42.00, followed by Shezan International, 
which suffered a decline of Rs 12.00.
Other prominent losers included Orix Leasing, Capital Securities, 
Dadex and Pakistan Tobacco, which suffered fall ranging from Rs 
1.40 to Rs 4.05.
Other actively traded shares were led by Southern Electric, up 40 
paisa on 0.930 million shares, Japan Power, unchanged on 0.668 
million shares, KESC, steady five paisa on 0.531 million shares, 
and Sui Northern, up 10 paisa on 0.209 million shares.
DIVIDEND: Millat Tractors, 85 per cent, Cherat Papersack, 70 per 
cent plus 30 per cent interim already paid, and Atlas Battery, 30 
per cent.

Back to the top
What now?
Ardeshir Cowasjee

THERE is no doubt in anyone's mind here, or in any of the countries 
which have dealings with us, that all our main political parties, 
particularly the PML, the PPP and the MQM, supposedly democratic 
components of the government and opposition, are financially and 
intellectually corrupt to the core.

The prime minister and his cohorts have manipulated the 
Constitution and the laws, converting themselves into immovable 
objects which can only be moved by an irresistible force.
That the judiciary, far from being independent, is incapable of 
pulling itself up by its own bootstraps despite the encouragement 
of the people and remains terrified is not in doubt either. It is 
likely that the judiciary will be in this helpless condition for 
years to come unless laws and rules dealing with confirmations, 
seniority, promotions and modes of dismissal of incompetent and 
corrupt judges are drastically changed in order to deal with the 
hierarchy thrust upon us. We have more than sufficient laws to 
effectively deal with all conceivable circumstances, but they 
remain largely unapplied. The law enforcement machinery, in 
particular the police force, is politicized and thus ineffective.
That the commerce and industry of the country are at a standstill 
is clear, the people of the country themselves having no 
inclination to invest. Of the hundred or so captains of industry, 
who the prime minister recently met in Karachi at the Federation of 
Chambers of Commerce and Industry, asked to bring back $ 5 million 
each from their bank account abroad, not one had the decency to ask 
Nawaz Sharif whether he himself, perhaps the country's largest 
industrialist, would set an example and lead the pack.
No doubt is also attached to the fact that the ruling coalition 
that has just been turfed out of the province of Sindh stands 
justifiably accused, purely in order to ensure its own survival, of 
indulging in acts of terrorism against the people who elected its 
The good news for Sindh is that Liaquat Jatoi and his ministers 
have been sacked and that Governor's rule has been imposed on the 
province. One of the first charges Jatoi will have to face is his 
involvement with the latest Bhugio land scam concerning a 
supposedly 'evacuee property' admeasuring some seven acres near the 
Mai Kolachi bypass. Innumerable other charges can be laid against 
him for his aiding and abetting of terrorism and murder, aiding and 
abetting of extortion, nepotism, and gross ineptitude.
Good news is that Mr Nawaz Sharif has at long last parted with his 
coalition partner, for once giving the needs of Karachi and its 
people priority over his own political agenda and in particular the 
passage of his much desired 15th Constitutional Amendment. For all 
we know, he may simply have done so realizing the improbability of 
his getting it through the Senate.
The bad news is that Ghous Ali Shah has been appointed chief 
adviser to our good governor Moinuddin Haider. His aim is to take 
upon himself the powers of and act as the chief minister of the 
province. He immediately made noises about installing himself in 
the chief minister's house, but hopefully this move has been 
stalled. The governor has asserted himself and reminded him that he 
is only the adviser on political matters and is not to meddle in 
the administration of the province, in postings and transfers and 
such others matters, and will be provided with an office in the 
governor's house.
As for postings and transfers under our elected government, to stay 
afloat and aid corruption Liaquat Jatoi and his partners rendered 
the administration and the police force totally subservient to 
their needs and thus insensitive to the needs of the people. A few 
weeks before his ouster, Jatoi insisted that his upright chief 

secretary be removed, and went to the extent of announcing that 
either Kidwai goes or he goes. Now that Jatoi has departed from the 
scene, perhaps Kidwai can be brought back to get things back on the 
rails. A look at the transfers and postings in the police force 
alone made by him during his tenure of 20 months, since he took 
over in February 1997, is revealing.
IGP Sindh  Mohib Asad, relieved 22.8.97; Asad Jehangir (additional 
charge) 22.8.97 to 25.11.97; Aftab Nabi 25.11.97 to 30.10.98; Rana 
Maqbool Ahmad appointed 30.10.98 (the prime minister's choice, 
superseding over 70 officers  he may not be with us for long).
DIG Karachi  Asad Jehangir, relieved 5.3.97; Niaz Ahmed Siddiki 
5.3.97 to 28.4.97; Malik Muhammad Iqbal, 28.4.97 to 20.12.97; Jawed 
Iqbal, 14.12.97 to 10.3.98; Muhammad Ijaz Akram, 10.3.98 to 4.6.98; 
Rahoo Khan Brohi, 17.6.98 to 22.9.98; Mushtaq Ahmed Shah, 22.9.98 
to 30.10.98; Farooq Amin Qureshi, appointed 30.10.98 (the prime 
minister's choice, superseding over 100 officers, thus setting an 
all-time record and antagonizing the entire PSP cadre).
SSP  District East: Saeed Rehmani, appointed 5.3.97; Sardar Abdul 
Majeed, appointed 12.5.97; Ramzan Channa, appointed 10.3.98; Jamil 
Ahmed Khan, appointed 22.9.98. District Central: Syed Abbas Raza, 
appointed 10.5.97; Rafeeq Hassan Butt, 31.7.97; Saud Ahmed Mirza, 
appointed 31.10.97; Farooq Amin Quraishi, appointed 22.10.98. 
District West: Abdus Sattar Sheikh, appointed 5.3.97; Sardar Abdul 
Majeed, appointed 10.3.98; Moazzam Jah Ansari, appointed 19.8.98. 
District Malir: Sardar Abdul Majeed, appointed 6.3.97; Mushtaq 
Ahmed Shah, appointed 15.5.97; Nadir Khoso, appointed 20.8.97 (he 
was removed by Jatoi because he unearthed and seized a huge cache 
of arms which was inconvenient for the coalition partner); Dr 
Ghulam Murtaza Jakhrani, appointed 23.9.98. District South: Zafar 
Iqbal Qureshi, appointed 7.3.97; Ghulam Hyder Jamali, appointed 
7.5.97; Manzoor Ahmed Mughal, appointed 14.3.98; M. Ramzan Channa, 
appointed 19.9.98.
SHOs of main Karachi Police Stations: Central PSs  Khawaja Ajmar 
Nagri  4 incumbents; Taimuria  4. East PSs  Ferozabad-6; 
Bahadurabad-8; Shahrae Faisal-3; Soldier Bazaar-5; Gulshan-i-Iqbal-
9; Korangi-6. West PSs  TPX-6; Mauripur-5; SITE-7; KPT-4; Mouchko-
7; Docks-5; Jackson-7; Malir PSc  Gulzar-i-Hijri-6; Sukkan-5; 
Airport-5; Gadap-8; South PSs  Saddar-9; Napier-5; Mithadar-7; 
Kharadar-7; Artillery Maidan-4; Preedy-8.
Reportedly, approximately 90 policemen have been gunned down in 
Sindh during the Jatoi government tenure as against approximately 
20 MQM activists killed by extrajudicial means.
*From the above, it must be recognized how necessary it now is to 
depoliticize the police force. The prime minister, according to his 
minister Mushahidsaab, is still in favour of the metropolitan 
police system for our city, which means, of course, that 
Mushahidsaab himself also supports the scheme, as do interior 
minister Chaudhry Shujaat and minister Haleem Siddiqui. The 
governor who was in Japan during the deliberations held here last 
month, and who is on record as being in favour of the scheme, 

visited the police establishments in Tokyo and has brought back a 
lot of material to help us all further the scheme. An apolitical 
governor's rule will be the ideal time to make a fresh beginning on 
the establishment of a metropolitan police system.
The critics of change are encouraged to review the pros and cons of 
the proposed system which were printed on page 5 of this newspaper 
on October 21. And, before they write again, would they please take 
the trouble to discuss whatever it is that they cannot comprehend 
with the CPLC chief Jameel Yusuf.

Back to the barricades
Irfan Husain

ONCE more, the MQM is the villain of the piece. Its activists are 
being rounded up, and denounced as terrorists. Been there, done 
that. Eerie sense of deja vu.
Most people have no idea who actually killed Hakim Said, but they 
are neither surprised nor horrified by the official claim that the 
MQM was behind the murder. Over the years, both factions of the MQM 
have earned a chilling reputation of harbouring vicious killers in 
their ranks. No protestations of innocence can possibly change this 
public perception because those of us who live in Karachi have seen 
these criminals in action.
Against this backdrop, the announcement of governor's rule has been 
greeted with a collective sigh of relief. People are fed up with 
endless strikes (now called under the euphemism of "mourning 
days"), car robberies and holdups at gunpoint, and the unending, 
daily death toll caused by the infighting between the rival 
factions of the MQM. The criminals responsible for these murderous 
attacks were sheltered under the MQM umbrella; and as the Muttahida 
was a coalition partner with the PML, its members were seldom 
brought to book. Indeed, Mr Nawaz Sharif freed large numbers of 
alleged terrorists as a price for forming a government in Sindh.
But having taken the plunge, the federal government must not get 
cold feet in mid-stream, to mix several metaphors. The governor of 
Sindh is a good, sensible man who must be given total support by 
Islamabad, and not hobbled by appointing has-beens like Ghous Ali 
Shah. Fortunately, the proposed advisory council idea has been 
dropped, at least for now. But General Moinuddin Haider must be 
allowed to assemble his own team, and get on with it.
Another temptation to be avoided is to play favourites in Karachi's 
troubled waters. While the Haqiqi faction has enjoyed covert 
official support for a number of years, this must now cease. If 
governor's rule is to have a chance of succeeding, it must be even-
handed and strictly impartial. Any semblance of favouring one lot 
of the MQM against another will discredit the whole exercise. Yet 
another pitfall is the ability of the police to profit from any 
situation; they routinely arrest the innocent and put the squeeze 
on their families before releasing the victims. Already there are 
reports of young kids being picked up in the police dragnet. But 
the other side of the coin is that boys as young as 13 and 14 roam 
the streets with automatic weapons. When the security agencies come 
to these localities, nobody dares to identify these young thugs. So 
what is the police to do?
Clearly, governor's rule is not an end in itself. Hopefully, the 
current level of violence will subside with the arrests of scores 
of known criminals. But sooner or later, there will be a backlash 
as those activists who are now underground emerge from hiding. To 
re-establish its credibility among its own constituency, the MQM 
must show itself able to face the might of the state. It has 
thrived on its underdog status when out of power, and it would be 
over-optimistic to assume it has disappeared just because the daily 
death toll has fallen.
So what next for the MQM? By now it has alienated all the major 
power groupings in the country. The Muslim League has found it a 
very prickly partner: throughout the recent marriage of 
convenience, the MQM has acted as an opposition party while 
enjoying all the fruits of power. Despite being an ostensible ally, 
the MQM leadership has sniped constantly at Nawaz Sharif. The PPP 
tried to crush the party because it did not need it to form a 
government in Sindh, and attempted to eliminate it through General 
Babar. To this day, many people  especially in Punjab  are 
convinced there is no other way of dealing with this armed and 
dangerous ethnic group.
The army, and many others out of uniform, is convinced that the MQM 
receives arms, money and training from India. Whatever the truth of 
this allegation, many of the party's words and actions have 
convinced a large section of Pakistanis that its patriotism is 
questionable. The fourth major power centre comprises the religious 
parties, and they view Altaf Hussain and his supporters with 
suspicion because of his secular stance. Indeed, this is the one 
positive aspect of the MQM.
Unfortunately, the MQM has been unable to make the transition from 
a militant band to a mature political party. There has always been 
a strong fascistic streak that has suppressed dissent. Even worse, 
its cadres have become so accustomed to collecting "bhatta" or 
protection money from individuals and companies that they can't 
function as normal political workers any more. This is their only 
source of income, and they cannot live without it. So if Altaf 
Hussain were to order them to stop this racket, they simply 
wouldn't obey.
Clearly, the saner elements in the party have to review their 
options, limited as they are. If they are to exist and function as 
a political entity, they must renounce their terrorist wing. So 
far, there has been a symbiotic relationship between the two: the 
public, political side of the party has provided cover to the 
criminal elements while the latter have given muscle to the party 
that has been out of proportion to its actual parliamentary 
support. Now, if the MQM is to continue as a player in the national 
power game, the nexus between the political and armed wings must be 

One thing is clear, and that is the fact that much of the violence 
in Karachi  and the rest of the country for that matter  can be 
directly attributed to unemployment. As over a million youths join 
the labour market, our limping economy can generate jobs for a 
small fraction. The rest are too poorly educated to be employable. 
This underclass will continue to spread violence, whatever the 
banner they operate under. The irony is that the decade-long mayhem 
in Karachi has frightened away billions in investments, thus 
further reducing jobs. This, in fact, is the MQM's lasting 
contribution to the solution of the Mohajirs' problems.
Karachi's crisis cannot be tackled exclusively through force. Firm 
action must be accompanied by economic revival. Just as the federal 
government must back the governor in checking violence, so too must 
he receive fiscal support. The campaign to make Karachi safe again 
will be a long and arduous one, but victory must not be sought at 
the cost of our humanity. There must be no more "custodial 
killings", no false arrests, and above all, no demonization of the 
entire Mohajir community.

Pakistan thrash Germany to meet Holland in final
By Ilyas Beg

LAHORE, Nov 6: Pakistan qualified for the final of the 20th 
Champions Trophy Hockey Tournament thrashing the tough-tackling 
champions Germany by 3-1 in the last match of the single league on 
Friday here at the National Hockey Stadium.
Tomorrow (Saturday) is the rest day and the final between Pakistan 
and Holland will be played on Sunday at 3.5 p.m.
The victory was hailed by over 15000 spectators and a section of 
the crowd invaded the ground to congratulate the players.
Some overzealous supporters carried captain Mohammad Usman over 
their shoulders and ran around the stadium to express their joy 
while the crowd in the stands gave the Pakistan team an standing 
Never for a moment Pakistan playing with the same reshuffled 
combination, relaxed its grip over the game and continued to attack 
from start to finish. The forwards made repeated inroads into the 
German defence and got three goals. Had the chances not been 
missed, the Pakistan team would have won by a much bigger margin. 
Credit should be given to the young German side, who comprises 
mostly youngsters,  fought well but they lost the match.
The German coach Paul Lissek told newsmen that his ten experienced 
players had been left back home and he felt a strong German team 
would be built by including some youngsters who showed promise 
during this tournament.
Pakistan's Haider Husain scored first goal for Pakistan in the 12th 
minute. A penalty-corner hit was taken by Germany and a Pakistani 
defender cleared the ball. Anis sent a cross and Haider  dived full 
length to send the ball into the goal.

Germans managed to equalise the score 1-1 before the interval. On 
Germany's second penalty-corner in the 32nd minute, a straight hit 
was taken by Kurtz and the ball was deflected into top net from the 
stick of a Pakistani defender.  

Pakistan started attacking in the second session and earned a  2-1 
lead in the 55th minute. Pakistan got its fourth and last penalty-
corner in the 54th minute and Sohail Abbas scored with a fast, 
rolling push which gave no chance to the German defenders. Sohail 
Abbas was unlucky to waste a penalty-stroke which had been earned 
by Atif Bashir who was stopped from scoring in the "D" in a 
questionable manner. Sohail's waist-high push landed in the chest 
of the goalkeeper Schulte.
Two minutes before the final whistle, Pakistan scored their third 
goal through. Atif Bashir who got a pass from outside the "D" and 
scored with a fine hit (3-1).
Manager Khawaja Zakauddin said that the Pakistan team entered the 
match against Germany with the will and determination to win. He 
said that the team would go flat out to win the trophy now that it 
had transformed into a fighting combination.  He said Pakistan team 
would become a force to be reckoned  with in international hockey. 
Coach Shahnaz Sheikh said that  his team successfully thwarted 
Germans' efforts on scoring on  penalty-corners  through excellent 
defensive drills.  He  expressed happiness over performance of the 
team which fought till the very end of the match.
The two teams were:
Pakistan: Muhammad Qasim (goalkeeper), Aamir  Saleem, Sohail Abbas, 
Asad Qureshi, Muhammad Usman (captain), Muhammad Waseem, Haider 
Husain, Atif Bashir, Muhammad Anis, Muhammad Sarwar, Naveed Iqbal, 
Kamran Ashraf, Babar Abdullah.
Germany: C Schulte (goalkeeper), P. Crone, Max Klink, S. Belnelt, 
C. Kutz, B. Emmerling, C. Mayerhofer, F. Gemmrig, C. Wein, B. Kopp, 
A. Lante, C. Achtmann, T. Draguhn, B. Bruse. Umpires: M. Grime and 
J. Gorissen.

Akram, Malik appear before PCB probe committee
Samiul Hasan

KARACHI, Nov 3: Former captains Salim Malik and Wasim Akram 
appeared before the Pakistan Cricket Board (PCB) probe committee 
which is investigating the charges of betting and match-fixing.
The hearing took place at Lahore on Monday.
Justice Ijaz Yousuf, a PCB council member from Balochistan and NWFP 
who heads the PCB probe committee, told Dawn that the two players 
recorded their statements which cannot be disclosed.
KCCA President Nusrat Azeem, LDCA President Mian Mohammad Munir, 
PCB Secretary Waqar Ahmed are members of the probe committee.
"It's highly confidential. I am not going to even tell you if they 
have denied the charges or not," Justice Yousuf said.
Inzamam-ul-Haq, Ijaz Ahmad and Dr Dan Keisal (team physiotherapist) 
were also called for their cross-examination "but because of the 
shortage of time, their statements couldn't be recorded.
"The testimony of Wasim Akram and Salim Malik hasn't finished yet. 
They will be called again later on," he said.
According to sources close to the players, both the cricketers 
vehemently denied the allegations and even registered their protest 
over the leakage of the probe committee two months ago.
"I don't know who leaked the report to the media because one copy 
was with the Senate's Standing Committee of Sports chairman while 
the other was with the PCB chairman," Justice Yousuf said.
An interim report prepared by Justice Ijaz Yousuf's committee 
recommended that Wasim Akram, Salim Malik and Ijaz Ahmad should not 
be selected in any Pakistan team until the investigations were on.
Besides the three cricketers, the probe committee had also named 
Inzamam-ul-Haq, Mushtaq Ahmad, Saqlain Mushtaq, Moin Khan and Waqar 
Younis as being involved.
They further argued that the leakage of the probe committee report 
has badly tarnished their reputation as Pakistan's international 
"Whosoever has levelled the accusations, we want to cross-examine 
them. But it is their word against ours," Malik and Akram are 
reported to have told Justice Yousuf.
When Justice Yousuf told the two cricketers that they wanted to 
carry out indepth investigations to get the truth, the two said: 
"We also want the same but labelling the players as involved in 
match-fixing before the investigations are completed is 
"No one is guilty until proven," the duo maintained.
Justice Yousuf said his committee was carrying out the 
institutional inquiry and should not be mixed up with the judicial 
Jahangir for Germany today to contest WSF post

KARACHI Nov, 2: Squash legend Jahangir Khan, nominated by the 
Pakistan Squash Federation to contest for the post of the vice-
president of the World Squash federation, is scheduled to fly for 
London tomorrow (Tuesday) on way to Stuttgart, Germany, where the 
WSF annual general body meeting and elections are to be held.
The four-day meeting of the WSF, scheduled at Stuttgart from Nov 5, 
will discuss a number of issues concerning with the further 
development and promotion of the game and ending with the election 
for four vice-presidents on Nov 8.
Record ten time British Open Champion Jahangir Khan, who was 
elected as vice-president of the PSF over two months back, has been 
nominated by the federation to contest the post of vice-
presidentship, held by Hassan Musa, who was shot down in December 
last year at the premises of the PIA Jahangir Khan Squash Complex 
by unknown assailants.
Jahangir Khan, who is General Manager, Sports PIA, told Dawn today 
that six candidates would be contesting for the four posts of four 
vice-presidentship for a term of two year. England s Mike Corby and 
USA's a Anne Smith are seeking re-election and they are certain to 
be re-elected as the former is representing Europe and the later 

for Pan-America. The other four candidates are Vija Gaffar of South 
Africa, Kayoda Roberts of Nigeria (Both from Africa), Andre Naniche 
from USA and myself, he stated.
In a such a situation to win the post looks tough and difficult, 
stated Jahangir Khan, the only candidate from Asia.
However, he said he would meet the representatives of the countries 
to seek their support in the light of Pakistan's invaluable 
contribution in the promotion of world squash.

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