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CONTENTS ===================================================================
NATIONAL NEWS + No devaluation till June, says minister + IMF package for Pakistan to be implemented soon, says US + Clinton enjoyed Nawaz visit + Steps suggested to prevent nuclear war over Kashmir + Governor's rule may continue for one year, says Moin + HR issues absent from Nawaz govt agenda + Military Courts: Motion notice in Senate submitted + LHC seeks position of forex deposits + FM expects full refund: US given Dec 30 deadline on F-16s + SC reserves judgment on Benazir's petitions --------------------------------- BUSINESS & ECONOMY + IMF ready to reveal details if govt agrees + Exports fall by 12.3pc, imports by 19.9pc + Pakistan fails to avail $50m credit + Retail sales tax collection 'dismal' + Banks to quote Euro rates from Jan 5 + FCAs deposits utilized: LHC + $4.11bn FCY deposits encashed in 6 months + Only one company listed on KSE in 1998 + Forex reserves up at $476m + Stocks fail to extend rally, lose 10.06 points --------------------------------------- EDITORIALS & FEATURES + The city of Karachi-2 Ardeshir Cowasjee + Between a rock and a hard place Irfan Husain ----------- SPORTS + Malik 2nd Pakistani to play 100 Tests + Pakistan, India hope to down South Korea + Amjad to face Zarak in final

No devaluation till June, says minister
Bureau Report

ISLAMABAD, Dec 11: Pakistan has decided not to opt for any upfront 
devaluation or doing away with the prevailing multiple exchange 
rate system at least till June 1999, Finance Minister Ishaq Dar 
said here on Friday.
"Let me categorically state here that we have said a big 'No' for 
further devaluation, elimination of dual exchange rate or 
increasing the prices of petroleum and electricity during the 
current financial year," he stated at a news conference here.
He also very confidently said that Pakistan will not default on 
repayment of its debt and continue to make payments to its 
preferred creditors within the grace period.
"I assure you that we will not default and can tell you that even 
today we have made a payment of 36.8 million dollars -27.5 million 
to IBRD and 9.3 million to Asian Development Bank.
The finance minister claimed that the government will get about 2 
billion dollars from the multilateral agencies by June 1999. During 
1997-98 Pakistan has received 1.7 billion dollars from various 
international lending agencies, he added.
Giving details, Dar said Pakistan's reserves position was not all 
that bad and that they now stood at 480 million dollars. There has 
been an increase of 178 million dollars in the reserves during the 
last few weeks. "If we are returning money, funds are also flowing 
in at the same time," he added.
"We have lined up resources to make the payment of around 400 
million dollars by January 15," the finance minister said.
He pointed out that a larger understanding has been reached with 
the World Bank and the IMF to secure their funding line. "Neither 
Paris Club has declined to hold any meeting nor the IMF has 
postponed its meeting," he said adding that the Paris Club met on 
Thursday and, "we hope to have some positive feed back any time 
tonight". Also meetings with the members of the G-7 countries 
including the United States have been very positive, he said.
Mr Dar said that IMF's executive board will meet in the middle of 
January to approve a funding package for Pakistan.
He pointed out that the World Bank was likely to provide 450 
million dollars as part of the Structural Adjustment Loan (SAL). 

"We will try to get maximum upfront payment after the Bank's 
mission visit to Pakistan shortly".
Responding to a question, the finance minister said that Foreign 
Currency Accounts (FCAs) worth 3.8 billion dollars have been 
converted into Pakistani rupee accounts. "Then we have successfully 
sold 230 million dollar worth of foreign currency bonds", he added.
Discussing the overall economy, he said that agriculture growth was 
close to the target. He said that cotton production was estimated 
at 10 million bales while sugarcane production has been estimated 
at 52 million tons. Last year its production was 28 per cent less 
than the current year.
Rice production, he continued, was likely to be 4.4 million tons 
while maize production has been estimated at 1.5 million tons.  
The industrial growth, Dar said, was negative last year (2.29 per 
cent) and the first five months of the current fiscal showed that 
large scale manufacturing was 4.1 per cent so far.
Inflation, the finance minister said, has been recorded at 6.6 per 
cent during July-November against 10.2 per cent in the 
corresponding period last year.
He denied that prices have shot up after 2.5 per cent increase in 
the GST rate. "The Whole Sale Price (WPI) index was not more than 
1.2 per cent on the annualised basis while the Consumer Price Index 
(CPI) registered marginal increase in 47 essential commodities. 
There was absolutely no increase in 24 items, he claimed.
The commerce minister disagreed with a questioner that 2.5 per cent 
increase in GST would cause a lot more inflation. He maintained 
that it would not be more than 1.2 per cent.
He said exports decreased by 12.3 per cent during the first five 
months of the current financial year. He said exports worth little 
over 3 billion dollars were made as against 3.5 billion dollars of 
the corresponding period of last year.
The commerce minister said that imports had declined and these were 
to the tune of 3.62 billion dollars against 4.53 billion dollars of 
last year during the corresponding period. So imports decreased by 
19.85 per cent in first five months of 1998-99, he added.
Trade deficit, Dar said, was now 102 million dollars much less than 
the figure of November when it was 555 million dollars and as such 
it has recorded a reduction of 47 per cent. He said that the 
government would save Rs3 billion due to worldwide reduction in the 
oil prices. He did not agree that the government would save Rs72 
billion and said, "Rs69 billion petroleum surcharge was already the 
part of the budget".

IMF package for Pakistan to be implemented soon, says US

ISLAMABAD, Dec 11: The United States on Friday said it has thrown 
its support and full weight behind the IMF package for Pakistan and 
it will be implemented very soon.
US Assistant Secretary of State for South Asia, Karl Inderfurth, 
said at a worldnet dialogue that Washington has encouraged the 

International Monetary Fund to seek a rapid conclusion of the 
package to Pakistan.
"We have encouraged the IMF to seek as rapid a conclusion to that 
package as possible given the economic situation of Pakistan," he 
Karl Inderfurth said, the US has signalled support for IMF package 
that is under consideration where there has been agreement and it 
"will be implemented very soon."
The US, he said, recognized that the economic situation in Pakistan 
needs immediate attention.
"We understand the Paris Club is meeting, the IMF Board will meet 
in early January and we are supporting an early resolution of 
Referring to Prime Minister Nawaz Sharif's recent visit to 
Washington he said, the US expressed its support for a quick 
conclusion of that package.
"When we were discussing these matters with the Prime Minister 
Nawaz Sharif, Finance Minister Dar and Foreign Minister Aziz in 
Washington, we let it be known that we want to see that package go 
through as quickly as possible."
Karl Inderfurth stated that the international community and the US 
are coming to the assistance of Pakistan at this very important 
time but there are steps that Pakistan must also take.
"The economic situation there is one that will require strong 
leadership by the Prime Minister and other issues including those 
associated with the IPPs must be addressed by Pakistan," he said.
"It is a process that is mutually reinforcing."
Inderfurth appreciated that Pakistan is close to resolving the 
Independent Power Producers issue, saying it is very important for 
restoring investors' confidence in Pakistan.
The Assistant Secretary of State for South Asia rejected the 
impression that the US is playing a "cat and mouse game" with 
Pakistan vis-a-vis the IMF meetings.
"That is not the case  we don't play cat and mouse game with our 
friends  and we are not doing that with Pakistan."
The IMF, he said, is responsible for its negotiations with 
"It is not the US which dictates or directs the IMF negotiations," 
he said.
Inderfurth said, the US "sent a signal to the IMF in July that we 
thought because of the economic situation in Pakistan that 
negotiations should resume  that was an important step taken.
"And despite the sanctions that were put into place after the 
nuclear tests in May we gave that signal because we understand the 
very serious nature of the situation."
Then, he added, as a result of important steps taken by the 
Pakistani Government Washington was able to go further.
"And that is to support and throw our full support behind an IMF 
package which will include lending from the international financial 
institutions the World Bank and the Asian Development Bank."APP

Clinton enjoyed Nawaz visit
Shaheen Sehbai

EVEN a cursory reading of the official statements and press 
releases issued by US and Pakistani sides after the Nawaz Sharif 
visit will give the impression that hardly any breakthrough was 
made and both sides stuck to their guns, but the satisfaction and 
relief in Prime Minister's family circles betrays that conclusion.
So what has actually happened and why are the Sharif brothers so 
happy and enjoying the rest of their visit? This remains a 
challenging subject for investigative journalists to dig out.
The blunt and terse White House comments a few hours after the two 
leaders ate lunch and briefings by top administration officials 
later give some clues to what the Americans are expecting from Mr 
Sharif. Because they were given not-so-public assurances, they 
could afford to keep their tough public posture for the US media.
In return what Mr Sharif will get was clearly indicated by Mr 
Clinton himself when he virtually asked opposition parties in 
Pakistan and India to give their governments "a little elbow room" 
to deliver what they had promised to the Americans.
This was taken by Mr Sharif as an open and public expression of 
support for him personally which his media spin masters would 
project as Washington's stamp of approval and authentication to 
curb any traces of opposition in the military, judiciary, 
parliament or the media.
Thus Mr Sharif is likely to become even more tough in dealing with 
his adversaries and the most likely target would be the print 
media, the sections which keep their independence and try to 
portray the facts as they are, rather than as the PM sees them.
According to Karl Rick Inderfurth, the official who was present 
almost in every meeting except the one-to-one between the two 
leaders, "Mr Clinton enjoyed talking to Mr Sharif in their closed 
door meeting." Rick had seen the President immediately after their 
talks to seek guidance on how the White House Press Corps had to be 
briefed and it was he who talked tough and appeared rude at times, 
giving the vibes that the US would not concede anything more unless 
Pakistan comes forward with more concessions. That is the public 
position knowing what time frame Mr Sharif had indicated would be 
followed to meet these targets.
The same Rick was much more sober at his briefing on Friday but he 
was asked about his demeanour on Wednesday and why was he so tense, 
discourteous and blunt. "It was Wednesday and today is Friday," was 
his curt reply but he tried to put some spin for South Asian 
journalists by saying it was his first White House briefing and his 
ABC TV senior Sam Donaldson was sitting in the front row making him 
nervous. But he did get a "well done, my son" compliment from Sam 
at the end.
Yet in both the briefings Rick said almost the same thing and on 
Friday he was a little bit more specific about what the US was 
expecting. The four important indicators he gave were: - Pakistan 
is on the path of signing and ratifying the CTBT. - The future may 
hold interesting, surprising new developments. - The important 
thing is that we are in the middle of a process and what we will do 
will be mutually reinforcing. - I cannot discuss specifics of what 
Mr Nawaz Sharif said when he was asked to assist in arrest and 
extradition of Osama bin Laden to the US.
The family circles and those closest to the prime minister, 
including almost everybody who is anybody in the Sharif mini- 
kitchen cabinet or decision-makers club, was present in Washington, 
are displaying big smiles. "Mr Clinton has assured Nawaz Sharif 
that America would not let him go down, come what may," a confidant 
who knows what is going on said.
"In return Mr Sharif has promised that he would sign the CTBT once 
the IMF approves the loans and the economy comes under control. And 
that time frame is just a few weeks, not even months. He has also 
promised that ISI would be asked at least to push the Taliban to 
get Osama ben Laden out of Afghanistan, if actually arresting him 
and dispatching him to the US was difficult," he said.
The key to the whole visit is the 20-minute one to one that Mr 
Sharif had with the President and the confidant said it was there 
that Mr Sharif convinced the President that he would deliver on his 
The threat from the army, fundamentalists and Benazir Bhutto was 
raised and the assurance was given that Pakistan would continue to 
talk to India on all issues, even keeping the talks on for the sake 
of just talking and appearing to meet the US demand to keep 
tensions from rising, the aide said.
The breakthrough has come on the F-16s and Mr Clinton told the 
Prime Minister that a case in the US courts would be embarrassing 
for him but he would provide a solution before the deadline for 
filing the case expires. An amount of $350 million was mentioned 
and that is precisely what would Pakistan get after adjusting the 
lease money which the US gets from New Zealand.
The idea is that Pakistan will get the lump sum money from a US 
commercial bank which will receive the New Zealand payments over 
the years. How the US pays its part is to be seen.
Pakistan will also get a full certification on the drugs issue this 
year which means that the President will have to issue a waiver as 
he did last year in US national interest.
The US is meanwhile keeping the pressure on Pakistan on the 
economic front and the IMF Board meeting has been put off to 
January while it is also not clear when the Paris Club would 
announce its decision to reschedule the loans that Pakistan has to 
So the twin pressure would continue and unless Mr Sharif implements 
his assurances, both public and private, the time frame for bailing 
out Pakistan would remain vague.
Personally if Mr Sharif has won support of President Clinton, the 
agenda he has now to implement is tough and practically impossible. 
That is where he will be tested.

Steps suggested to prevent nuclear war over Kashmir

ISLAMABAD, Dec 5: Scholars, participating in a three-day 
international conference on peace and security in South Asia, held 
here, agreed on the need for building a culture of consensus and 
confidence in the region in order to maintain a balance of 
deterrence between the two newly nuclearized countries.
Organized jointly by the Defence and Strategic Studies Department 
(DSSD) of the Quaid-i-Azam University and Hanns Seidel Stiftung of 
Germany, the conference was attended by experts from Pakistan, 
India, the United States, China, Russia and Germany.
Addressing a press conference on the conclusion of the moot on 
Saturday, jointly with Dr Hein Kiessling of Germany and US Embassy 
charge d'affaires, Dr Zafar Iqbal Cheema, head of the DFSS 
Department of QAU, said scholars generally agreed that Kashmir was 
the core issue, with the potential of igniting a nuclear holocaust 
in the region.
He said the Indian nuclear tests, which forced Pakistan to follow 
suit, had qualitatively changed the situation in the region and it 
was, therefore, considered essential to elicit views of scholars 
not only from within the region but other countries as well on the 
ways to tackle the situation, and this was the objective of the 
Dr Cheema said a number of proposals were made for the development 
of a strategic doctrine with a view to obviating the danger of an 
accidental nuclear conflict. This could be achieved through 
evolving command and control systems and taking measures for 
confidence building, etc. The scholars, he said, were of the view, 
nevertheless, that continuous efforts were needed for maintaining 
and strengthening stability, which should be vigilantly 
Responding to a question, Dr Cheema said Pakistan could least 
afford to engage in a nuclear arms race; it was not even in its 
Dr Kiessling expressed satisfaction with the outcome of the 
conference because it had led to an intellectual debate among 
scholars. The initial five nuclear powers, he said, were moving 
towards controlling nuclear arms race and eventually 
The US diplomat remarked that nuclear issue was more a political 
than a technological problem. The need was to see that those, who 
were in a position to advise leaders on the top, were apprised of 
the ideas expressed by the participants of the conference.
Some of the scholars were of the view that developed countries 
should provide to Pakistan and India the technology necessary for 
improving their command and control systems in order to preclude an 
accidental outbreak of nuclear war in the region . In this context, 
Dr Tariq Rauf had said on the second day of the deliberations that 
there had occurred a serious leakage of radioactivity at KANNUP in 
Karachi about 20 years ago. This highlighted the need for 
international cooperation in enhancing safeguards against such 
exigencies, he added.
Col Sarwar Cheema, former minister of state for defence, had said 
he did not see any peace in the region so long as the concept of 
peace was pursued on the basis of the old adage," might is right." 
The challenge was how to cater for national security of both India 
and Pakistan, he added. What was needed to build a culture of 
consensus in place of culture of confrontation, he had said, was 
finding a middle course between extreme positions taken by the two 
Dr Saeed Shafqat had not agreed to the view that Kashmir was the 
potential nuclear flashpoint between Pakistan and India.This view, 
he had said, had blurred the low-intensity conflict already going 
on in Kashmir for the past several years through the use of 
conventional weapons.
He had also drawn the participants'attention to massive trafficking 
in portable arms such as Kalashnikovs and stinger missiles, which 
were being used in a variety of civil strifes in both the 
countries. It was necessary to apply some control over their 
movement, he had suggested.
Dr Shafqat had said that while the two governments adhered to their 
positions, the scholars should work out alternative solutions to 
the Kashmir dispute and other sources of conflict which might not 
necessarily be similar to the official view.

Governor's rule may continue for one year, says Moin
By Our Staff Reporter

KARACHI, Dec 9: Sindh Governor Moinuddin Haider has said he would 
ask the prime minister to specify the minimum period of governor's 
rule in Sindh which can be one year.
He said this when some people pointed out the prevailing political 
uncertainty which is also effecting the performance of the 
administration. The governor, who had invited notables from a 
cross-section of society at the Governor's House on Wednesday 
evening to get feedback on the governor's rule, also agreed to a 
proposal to acquire the services of honest and efficient 
administrators from other provinces on deputation to clean the 
stable of inefficient personnel and to provide good governance.
Referring to the measures he had taken to provide an efficient 
administration in Karachi, Governor Haider said: "All efforts are 
being made to provide a clean administration, but over the years 
successive governments had made many appointments on administrative 
posts on political grounds by bypassing the Sindh Public Service 
Commission which affected the quality of governance."
But, he added, now he had already taken a policy decision that from 
now onwards all appointments in grade 11 and above would be made 
only through the Public Service Commission.
Governor Haider said besides the administration, he had also been 
paying attention to public utility organizations such as KESC, 
KWSB, KDA, and KMC, against which there were complaints of 
He asked the people that in case of facing difficulties, they 
should contact him though the Complaint Cell set up at the 
Governor's House which was working round the clock on Phone 136 or 
drop suggestions in writing at the letter boxes: one in the 
Governor's House, and the other at Sindh Secretariat.
He also agreed that if the top officials of the administration set 
examples of honesty and efficiency, their subordinates would 
emulate them and this would definitely bring about a positive 
change in their attitude.
When his attention was drawn to that major problem of lack of 
coordination among different agencies providing civic services 
which in a megacity like New York are under one head, the Governor 
said: "You are talking of metropolitan government. We are quite far 
away from the city government. However, we have taken initial steps 
towards metropolitan police."
He made it clear that it was not a governor's rule under martial 
law but under the provisions of the Constitution, and as such, he 
could not bring change overnight as expected by the people. 
Effective results could only be achieved through the participation 
of the people.

He said "people who are hesitant in expressing themselves" should 
give up their hesitation and express themselves and raise their 
voice that they were no more in the politics of terrorism, but keen 
to have a setup which could deliver the goods.
This was the governor's response to the impression that there is a 
gulf between his orders and their implementation, and as a result 
the required impact of change is not being felt.
He said for want of funds road building and carpeting scheme could 
not be taken up, and at the moment he was getting reports from the 
departments concerned that their cheques had been bounced. In reply 
to a question, the governor said the province had already crossed 
the limit of credit facility of the State Bank for Rs1.7 billion 
due to delay in release of funds from the federal government.
When his attention was drawn to an important problem, that is, the 
police should not harass the relations, parents, brothers and 
sisters of the wanted persons as it would provide an excuse to give 
a bad name to the governor's rule, Governor Haider said he had 
already formed committees at the district level with the 
participation of the CPLC and notables which would visit police 
stations and check the record of police stations of the last 24 
hours about timing of arrest, release and detained persons.
About sending the cases to the military courts, he said he himself 
was taking decisions about it to ensure that no innocent person was 
punished. He agreed to a proposal that if any person or official 
found of giving cooked-up statements to implicate an innocent 
person, he should be tried under in the military courts.

Human Rights Watch report: HR issues absent from Nawaz govt agenda

NEW YORK, Dec 10: The Human Rights Watch said in a report issued on 
Wednesday that "human rights were absent from the agenda" of Prime 
Minister Sharif's government this year and faulted it for continued 
deterioration of law and order situation in the country.
The report said that "as the Pakistan government focused on 
security concerns from outside, little effort was expended to 
prevent the human rights violations stemming from threats within 
its borders."
It observed that little action was taken by the government of 
Pakistan to stem custodial violence by police, while threats 
against judges and members of the press further eroded the 
independence of a few democratic institutions in Pakistan.
"Pakistan continued its slide into economic chaos in 1998. The 
decision in May to answer India's five nuclear tests with six of 
Pakistan's own was widely condemned and triggered sanctions from 
the US, Japan and a number of European countries that helped push 
the economy into a near-collapse," the report said.
"In the aftermath of the tests, the government of Prime Minister 
Nawaz Sharif declared a state of emergency and attempted to suspend 
all fundamental rights but was checked by the Supreme Court. Human 
rights were otherwise completely absent from the government's 
agenda; instead, as sectarian clashes worsened in the course of the 
year and renewed violence threatened to break out between the 
ethnically-based opposition parties and the government in Karachi, 
Prime Minister Sharif proposed legislation to further strengthen 
the powers of the executive in the name of bringing Pakistan's 
Constitution into conformity with Islamic law. The bill was passed 
the National Assembly on Oct 9 but was expected to face major 
opposition in the Senate," the report said.
The Human Rights Watch noted that "despite the economic crisis, 
Pakistan continued to intervene in two conflicts on its borders, in 
Afghanistan and in Kashmir. In Afghanistan, Pakistan provided 
substantial financial and military support for the Taliban 
movement, backing an August offensive that consolidated the 
militia's hold on much of northern Afghanistan. In Kashmir, an 
escalation in cross-border exchanges between Indian and Pakistani 
troops along the territory's ceasefire line led to more than one 
hundred civilian deaths on both sides in July and August."
"In Karachi, an upsurge in fighting between the Mohajir Movement, 
or MQM), a group representing Urdu-speaking migrants who left India 
in 1947, and the Muttahida Qaumi Movement (United National 
Movement), a group that split from the MQM, left more than 700 
dead, 300 in the months of June and July alone. It was the highest 
number of killings since 1995.
"On Aug 12, unidentified gunmen shot four Mohajir (MQM) men, 
including one sixteen-year-old, who was the only one to survive. 
Later that evening nine Muttahida activists, ranging in age from 
fifteen to twenty-two, were killed and five were injured by unknown 
gunmen. In apparent retaliation, the next day two Mohajir (MQM) 
activists were forced off a public bus before being shot, and two 
vehicles were burned on the streets.
"Despite the fact that until September the Muttahida formed part of 
the governing national coalition headed by Prime Minister Nawaz 
Sharif's Pakistan Muslim League (PML), some of the attacks were 
believed to have been perpetrated either with official 
participation or at least the acquiescence of various government 
"In September, the Muttahida Qaumi Movement quit Sharif's 
coalition. After four of its activists were killed on Oct 5, the 
group called a strike that sparked widespread rioting in Karachi", 
the report added.

Military Courts: Motion notice in Senate submitted

ISLAMABAD, Dec 10: Senator Aftab Sheikh of Muttahida Qaumi Movement 
(MQM) has submitted a notice of adjournment motion to the Senate 
secretariat for discussion in the forthcoming session of the Upper 
House about the situation arising out of the promulgation of an 
ordinance, and setting up of military courts in Karachi.
The Senate chairman has summoned the session on Dec 15 on the 
requisition of 25 senators.
In his adjournment motion, Sen Aftab Ahmed Sheikh said that the 
privilege of the senator and of the House had been breached by 
promulgation of the ordinance (No XII of 1998) which he described 
illegal, unconstitutional, undemocratic and un-Islamic.
He said through the ordinance the armed forces had been empowered 
in the garb of acting in aid of civil power to try civilians in 
The mover said that parallel judicial system had been established 
by violating Articles 2A, 175, and 203 of the Constitution of 1973. 
He said the matter was very urgent and be taken immediately.
Mr Sheikh added that the action was beyond the scope of Article 
245. Paralysing Sindh High Court and the entire judicial system in 
Karachi and elsewhere, was mala fide and unconstitutional in the 
alleged exercise of power, he said.

LHC seeks position of forex deposits 

LAHORE, Dec 10: The Lahore High Court asked a federal government 
law officer on Thursday to place before it on Monday the correct 
position in respect of foreign currency deposits before and after 
the May 28 nuclear blasts.
Deputy Attorney-General Sher Zaman Khan was also asked to find out 
whether the 1992 Protection of Economic Reforms Act, which 
protected forex deposits, was adopted by both the Houses of 
Parliament or was treated as a money bill and passed by the 
National Assembly only like the Foreign Exchange (Temporary) 
Restrictions Act, 1998, which seeks to override it.
The state of past and present state of forex deposits was sought by 
Justice Mian Allah Nawaz, who heads the three-member bench hearing 
the FCAs case, when State Bank counsel Abid Hassan Minto said that 
the kitty is empty because no foreign exchange is being earned and 
that the rupee value vis-a-vis dollar showed a slight improvement 
only because of the reported IMF-World Bank package.
Mr Minto emphatically said that the court would not like to issue a 
writ impossible of enforcement.
Justice Karamat Nazir Bhandari, a member of the bench, however, 
referred to the 1964 Supreme Court judgment in Maulana Maudoodi's 
case which declared that no court would decline to make an order 
only because it could be rendered ineffective.
Thursday's order also takes care of applications moved by certain 
petitioners and appellants that the SBP be asked to provide a list 
of those FCA holders who withdrew or transferred abroad their forex 
deposits just before the May 28 blasts. The government also has 
been saying that there were massive forex withdrawals after the May 
11 and 13 Indian blasts.
Nevertheless, the position taken by Mr Minto runs counter to the 
finance division's denial of the then finance minister Sartaj 
Aziz's assertion in an article published on August 8 that all but 
$200 million worth of forex deposits had been utilized by 
successive governments by the time the PML assumed power for the 
second time in February 1997. At its peak the amount was worth $ 11 
The petitioners' counsel, however, pointed out that the federal 
government and the SBP both have claimed in their para-wise 
comments and written statements that all forex deposits were in 
safe custody of the banks concerned.
Justice Bhandari wondered whether the SBP wanted to present the 
court with a Fait Accompli after giving the same treatment to the 
petitioners. The judge also expressed his surprise why special 
bonds have been offered only against dollar depositors. What about 
those holding pound sterling or d-mark accounts? he asked. 
The SBP counsel replied that they will have to first convert their 
pounds or marks into rupees at the rate fixed by the bank on May 28 
and then buy dollars in order to benefit from the special bonds 
"The FCAs have only been eclipsed", remarked Justice Allah Nawaz 
when Mr Minto said that the right to hold forex has only been 
suspended. They exist but cannot be seen for a while, he said. The 
counsel said the account holders were free to get their deposits 
back at the rate of Rs 46 to a dollar. He said the depositors were 
not prepared to accept bonds, though they offered very attractive 
terms. The petitioners only wanted their dollars back.
"Bring down the value of the dollar vis-a-vis the rupee and they 
would have no grievance", Justice Bhandari remarked.
The protection of Economic Reforms Act, 1992, was adopted on the 
Diktat of the IMF and the World Bank, Mr Minto said earlier, 
commencing his arguments. It marked a turning point in Pakistan's 
economic history. It represented a shift from mixed economy to a 
completed privatized, free market economy.
The bench agreed that the law dollarised the economy and diverted 
savings from industry and all other sectors to trading in 
Mr Minto argued that the 1992 law does not repeal the Foreign 
Exchange Regulations Act of 1947, the State Bank of Pakistan Act of 
1956 or the Banking Companies Ordinance of 1962. It takes effect 
notwithstanding anything contained in these laws and its provisions 
should be narrowly construed.
For example, while the 1992 Act protects FCAs, it does not directly 
protect them as collaterals for loans. It also does not alter the 
SBP's power to regulate credit policy. The exemptions and 

immunities provided by the Act discriminate against rupees account 
holders, who must pay Zakat.
The bench noted that while dollar was worth only Rs 23 in 1992, the 
value of the rupee declined more rapidly since.
Mr Minto said that SBP sought no benefit from the state of 
emergency but cannot, at the same time, ignore the fact of its 
imposition. It is bound by all laws made under it. However, he 
pointed out, the September 1998 Foreign Exchange (Temporary) 
Restrictions Act, unlike its predecessor ordinance of May 28, was 
not linked to emergency. It will not lapse on the expiry or 
withdrawal of emergency. The use of the word 'temporary' in its 
title was not of much consequences.

FM expects full refund: US given  Dec 30 deadline on F-16s 
Nasir Malick

LONDON, Dec 8: Pakistan is understood to have given Dec 30 deadline 
to the United States to decide whether it would release the F-16 
planes purchased by Pakistan or refund the money paid for them, it 
is learnt. After that date, Islamabad may exercise its option to 
take the issue to Congress.
Sources close to the Nawaz Sharif government told Dawn that 
Pakistan had been avoiding this option because it felt it might 
complicate the matter and "create problems for President Clinton."
Besides, they said, Islamabad had a pretty strong case if it chose 
to go to a court of law but had been delaying the move because it 
wanted to settle the matter out of court.
They said the case had been already prepared by a US lawyer who 
visited Islamabad last month. "Pakistan hopes for a full refund of 
the money in lump sum or, at best, in two instalments," the sources 
Pakistan has already received around $157 million out of the $650 
million it paid for the planes.
According to the foreign minister, Sartaj Aziz, the US had made 
some proposals for repayment of the money, but he refused to give 
any details.
"There is a combination of proposals which we will consider," he 
said. "But our stand is that either they should provide the planes 
or return the money," he said.
The United States has leased these planes to New Zealand at a 
throwaway price. New Zealand will pay $65 million each for a 10-
year-lease. It will pay $20 million for each of the planes in the 
first five years of the lease and the remaining $45 million in the 
last five years.
New Zealand has also been given the option to buy the planes on the 
expiry of the lease period by paying $150 million more for each 
It is understood that one of the US proposals is that Pakistan be 
given the money in instalments in the manner New Zealand pays it. 
Another is that the money be adjusted against the US loans given to 
Education Minister Ghous Ali Shah told Dawn of "some good 
beginning" on this issue. "We are demanding the money. They are 
applying their mind (to our demand)," he said.

SC reserves judgment on Benazir's petitions 
Bureau Report
ISLAMABAD, Dec 11: The Supreme Court on Friday reserved judgment on 
the petitions of Benazir Bhutto and Asif Ali Zardari, seeking the 
transfer of their Ehtesab cases from Punjab to Sindh. It said it 
would make an order on Monday.
A three-member bench, headed by acting CJ Justice Saiduzzaman 
Siddiqui which heard the petitions for the whole week, concluded 
the hearing on Friday.
Attorney General Chaudhry Mohammad Farooq who started his arguments 
on Thursday concluded them on Friday and half an hour was given to 
Chaudhry Aitzaz Ahsen to respond to his arguments. The court asked 
the attorney general to submit his reply in writing to the 
suggestions made by Ms Bhutto's counsel.
Barrister Aitzaz Ahsen suggested that two references  Ehtesab 
references 26 and 27  be transferred to Sindh and the remaining 
references pending in the Lahore High Court be heard at the LHC's 
Rawalpindi bench. He asked the SC to direct the high court to fix 
the references in such a manner that the petitioners were given 
enough time to prepare their case properly. The apex court was also 
asked that Mr Zardari should be allowed to pursue his cases pending 
in Sindh as most of the time he was kept in Punjab.
Resuming his arguments, the attorney general stated that the 
references were sent to the LHC chief justice with a secret 
covering letter. He claimed that he could not get a copy of the 
letter but if the court wanted to see it he could try to get a 
Opposing the request for transfer of references, the AG stated that 
both the references were in advanced stages. Most of the witness 
had been produced and a majority of them had been cross-examined, 
he added.
Justice Nasir Aslam Zahid observed that the counsel had stated that 
he had raised the objections at the very outset of the proceedings 
but nobody paid any heed to him.
The AG stated that if the disputed properties were located in Sindh 
then the question of jurisdiction could be raised but in these 
cases the property was either in foreign countries or in Islamabad. 
He submitted that he had instructions to inform the court that the 
prosecution would produce 15 witnesses in reference-26. He said out 
of these witnesses, 11 had already recorded their statements. In 
reference-27, out of 15 prosecution witnesses, 7 had been cross-
He said he was making a categorical statement that the prosecution 
would not summon any more witnesses. He assured the court that the 
petitioners would be provided a fair chance to defend themselves.
The AG said he understood that the petitioners were in a difficult 
position and offered that the state would bear the expenses of 
defence witnesses coming from Sindh. He said it was difficult to 
believe that the petitioners had no money to bring the witnesses to 
Lahore but if that was the position, the state was ready to bear 

the expenses of defence witnesses.
The AG also stated that the law and order situation in Sindh was 
such that it would be difficult for the parties to appear in the 
cases and narrated his own story when he was attacked with eggs and 
tomatoes in the Sindh High Court.

IMF ready to reveal details if govt agrees
Haris Anwar

KARACHI, Dec 8: The International Monetary Fund has no objection in 
making the details of Policy Framework Paper and Letter of Intent 
public if approved by the Government of Pakistan, Washington-based 
official of the Fund said.
In reply to an e-mail inquiry sent to the IMF, the official said 
that with the approval of concerned member countries, IMF has been 
publishing letters of intent and policy framework papers.
"We have not published Pakistan's LoIs/PFP in the past but will 
certainly do so if this is approved by the government," replied 
Vasuki Shastry, Asia Pacific Press Officer at the IMF.
There are 29 countries whose latest LoIs/PFPs are available at the 
IMF website (www.imf.org). These countries belong to turmoil-hit 
South East Asia where the political fallout is more severe than 
Pakistan and to remote Africa where democracy is a rare thing.
Letters of Intent are prepared by the member country. They describe 
the policies that a country intends to implement in the context of 
its request for financial support from the IMF.
The Policy Framework Papers are prepared by the member country in 
collaboration with the staff of the IMF and the World Bank. These 
documents, which are updated annually, describe the authorities' 
economic objectives, macroeconomic and structural policies for 
three-year adjustment programmes supported by ESAF resources, as 
well as associated external financing needs and major sources of 
Independent analysts say the issue of release of details of the 
bail-out package signed with the IMF has become more important 
amidst the conflicting statements made by the higher authorities.
"The market is confused as there are so many conflicting news daily 
pouring in the Press and nobody knows the exact details of the 
package," said a senior banker.
Commerce Minister Ishaq Dar at a news conference held on November 
25 claimed that Pakistan had signed a home grown package with the 
Fund without accepting up-front conditionalities.
The prime minister, on the other hand, during an interview to CNN 
said that bail-out package contained tough conditions.
"They must make it public as this was part of the democratic 
process," said a young economist. Pakistan had signed various PFPs 
with the IMF since 1988, whose details have always been kept 
secret. But the investigative Press off and on kept feeding the 
market about these agreements.
"After the spending package negotiated with the US, now IMF is 
bound to show a greater transparency while concluding agreements 
with member countries," said a leading analyst.
Under the agreement with US Congress for $14.5 billion emergency 
credit line, IMF will have to impose stiff lending terms on crisis-
hit borrowers and it must secure greater transparency in decision-
Furthermore, the borrowers would pay interest rates at least three 
percentage points above the broader market rates and repay the 
loans within 30 months.

Exports fall by 12.3pc, imports by 19.9pc
Muhammad Ilyas

ISLAMABAD, Dec 9: Pakistan's exports during the period July-
November, 1998, totalled $3.072 billion, short of the proportionate 
target for the current fiscal by over 26.27 per cent, an official 
source told Dawn here on Wednesday.
On the basis of the annual target fixed at $10 billion, the exports 
should have been at least $4.16 billion; in fact, these left a gap 
of over $1 billion between actual and desired achievement.
On the basis of this target, the average exports should be $0.833 
billion per month. In reality, however, the country has exported 
merchandize at the rate of $0.614 billion. In 1997-98, the 
comparable five months had achieved a monthly average of $0.700 
Compared to the corresponding period of last year when the 
merchandize exports of Pakistan had amounted to $3.504 billion, the 
exports during the first five months of 1998-99 showed a decline of 
12.3 per cent.
At the same time, the imports fell by 19.9 per cent. These totalled 
$3.627 billion, compared to $4.525 billion worth of goods imported 
during July-November of the last financial year.
Consequently, despite the continued drop in exports but thanks to 
drop in imports, the trade deficit also declined to $0.555 billion, 
down 45.64% from last year.
*From the point of view of the government's resolve to reduce the 
trade gap to $1.5 billion, the statistics show that Pakistan is 
well ahead of that target. This provides some relief from the 
gloomy performance of the exports, particularly, in view of the 
default situation facing Pakistan and desperate efforts by Pakistan 
to obtain balance of payments support from IMF and other donor 
The statistics also show progressive decline in exports from month 
to month. In October, 1998, these had amounted to $615 million. 
Exports during November 1998 plummeted to $612 million.
During November, 1997, the exports had totalled $771.4 million. 
Compared with this, the export during November also fell by over 
20.66 per cent.
Even more drastic is the fall in imports last month  $781 million, 
showing a decline of 23.74%, compared to corresponding month of 
last year. 
However, November 1998 registered a slight increase of $36 million 
over October, 1998, when imports had amounted to $745 million.

Pakistan fails to avail $50m credit
Parvaiz Ishfaq Rana

KARACHI, Dec 9: A $50 million soft-term credit line offered by the 
royal family of Abu Dhabi, about three months back to Pakistan, for 
meeting the import bill of urgently needed commodities has not be 
utilized, so far.
The credit line offered at 2 per cent above LIBOR was arranged by a 
business house which is also willing to arrange more credit lines 
once this was fully utilized.
A spokesman of the local representative of the business house of 
Abu Dhabi, who worked as a bridge in arranging this loan told Dawn 
that even after the lapse of three months the credit-line was not 
used because of bureaucratic snags. 
He further said that the intervention of federal ministers Ishaq 
Dar and Power Capt Haleem Siddiqui has not succeeded.
Pakistan accepted the $50 million facility for import of fertilizer 
which was required to meet the shortfall of this commodity during 
the Rabi season. Two separate agreements were reached for the 
import of 50,000 tons urea fertilizer and another 50,000 tons for 
Di-Ammonium Phosphate (DAP).
A local representative for Abu Dhabi's royal family business house 
and the Director General, Fertilizer Imports Department (FID), 
singed these documents on Oct 19, 1998.
FID started raising issues which have caused long delays and so far 
very little progress has been made.
In a recent letter the assistant director FID has asked the local 
representative to name manufacturer and supplier of fertilizer 
which the spokesman believes is against the business norms and 
could be used by the rivals to win over the deal.
However, he said once the L/C was established they will disclose 
the required facts.

Retail sales tax collection 'dismal'
Ikram Hoti

ISLAMABAD, Dec 8: The efforts of Central Board of Revenue to 
collect sales tax from retailers with a turnover of above Rs5 
million has not borne much fruits. Sources said these retailers 
were to pay ST at the standard rate of 12.5 per cent by end of 
November 1998, as per the Finance Act 1998, but by the end of 
October 1998, only 529 of them got registered with the Sales Tax 
More than a million retailers were targeted to be registered during 
the whole of the current financial year 1998-99. Half of that 
number was estimated to be registered by December 1998, but at the 
present pace, the target seems "impossible" to be met, said senior 
CBR officials.
They revealed to Dawn that the total returns received by end of 
October 1998 were 308, while the total money deposited by the 529 
retailers so far registered was Rs5.1 million.

CBR had announced in August 1998 that all the retail traders with a 
turnover of Rs5 million or above "shall have to file their first ST 
returns for the quarter ending September 30, 1998 by October 15, 
1998, and are liable to registration with the ST Department".
A CBR officials said while no coercive measure was taken by the 
department until October 20, 1998, all such retailers were advised 
to obtain its registration at the earliest. Other retail traders 
below the threshold of Rs5 million annual turnover were given the 
option either to obtain voluntary registration or to obtain taxable 
goods with one per cent further tax, in accordance with the law.
The fixed sales tax schemes were thus abolished with effect from 
July 1, 1998, and the manufacturers who worked under the fixed 
sales tax scheme in 1997-98 or earlier, "should now file normal 
sales tax returns and work under-invoice-based GST system or under 
the turnover scheme as may be applicable in their respective 
cases", as the scheme was worded.
However, the response to this scheme has been "depressingly poor", 
say the CBR officials, and they are now suggesting to the federal 
government to "demonstrate political will to get the scheme 
imposed", said one senior official. He added that the latest 
response on the performance on scheme has been "pathetic". The 
ministry told the CBR last week that "a policy of wait and see is 
the only resort in this respect. The government is being asked to 
chalk out a modus operandi for getting the Rs2 billion targeted 
from the scheme", said a ministry official.
The records of CBR on the retail stage sales tax collection and 
registration so far compiled from reports of ST collectorates say:
ST Collectorate Hyderabad (registered 39; returns 16; collection Rs 
0.332 million); Karachi West (registered 18; returns 8, collection 
Rs 0.191); Lahore (registered 139; returns 82; collection Rs 
3.105); Multan (registered 92; returns 67; collection Rs 0.164); 
Quetta/Hub (registered 13; returns 10; collection Rs 0.152); 
Rawalpindi (registered 35; returns 26; collection Rs 0.054); 
Peshawar (registered 8; returns 3; collection Rs 0.072); Faisalabad 
(registered 55; returns 40; collection Rs 0.560); Gujranwala 
(registered 56; returns 44; collection Rs 0.002); Karachi East 
(registered 74; returns 12; collection Rs 0.485).
The CBR records put the initial estimates of the prospective 
retailers with turnover above Rs5 million and taxable under the 
Retail Tax Order beyond half a million only in Karachi, Lahore, 
Hyderabad, Rawalpindi; and Multan.

Banks to quote Euro rates from Jan 5
Mohiuddin Aazim

KARACHI, Dec 7: Banks operating in Pakistan will start quoting 
exchange rates for the Euro from January 5, 1999 but it would take 
some time before they grasp its complexities and give practical 
tips to their clients.

The Euro will be launched a day earlier i.e. on January 4, 1999 
the first working day next yearin the Eurozone comprising 11 
countries which will adopt th Euro as a single currency.
"We will include the Euro on our rate sheets from January 5," 
treasurer of a foreign bank told Dawn. He said banks operating in 
Pakistan cannot quote the exchange rate for the Euro before because 
of the time difference between international and local money 
The banker said his colleagues in the computer department are busy 
developing a new pattern of the rate sheets that would show 
exchange rates of the Euro vis-a-vis some major currencies from 
those 11 countries that are going to adopt it as a single currency.
The countries that will adopt the Euro from January 4, 1999 are: 
(1) Austria (2) Belgium (3) Finland (4) France (5) Germany (6) 
Ireland (7) Italy (8) Luxembourg (9) Netherlands (10) Portugal and 
(11) Spain. On January 4, 1999 these countries will announce the 
conversion rates of their own currencies vis-a-vis the Euro that 
would remain unchanged for the next three years.
People around the world be free to do business with these 11 
countries either in their individual currencies or in the Euro up 
to December 31, 2001 but these countries would determine the 
exchange rates by crossing any foreign currency with the Euro and 
with their individual currencieslike Deutsche Mark or French 
That is why banks operating in Pakistan need to put the Euro on 
their rate sheets even if Pakistani businessmen opt for doing 
business in the individual currencies of the said 11 countries and 
not in the Euro as such.
"Our bank will also be quoting the Euro rate from January 5," said 
treasury manager of a state-run bank. He said a separate section of 
the bank has been working out the specifics for this purpose. "We 
may start running trials for Euro transactions from the middle of 
this month."
The State Bank of Pakistan is yet to announce its policy with 
regard to the new currency. "We are waiting for instructions from 
SBP," said treasury manager of another state-run bank. "But like 
all other banks we on our part are preparing to put the Euro on the 
rate sheet from January 5."
Bankers say the exchange rate between the Euro and the rupee will 
be determined by crossing the Euro with the US dollar and then the 
dollar with the rupee.
The mere inclusion of the Euro on the exchange rate sheets of banks 
is not sufficient. The bank clients would need a whole range of 
services before they make up their mind on how to go about the new 
currency. How the banks are going to address this issue?
"I should say banks will not be able to offer practical tips to 
their clients in the first one or two weeks," says treasury manager 
of a European bank in Pakistan. "But we will welcome our clients 
willing to open Euro accounts and establish letters of credit in 
Euro instead of individual European currencies," he adds.
So far opening of LCs in Euro is concerned at least a section of 
the trade and industry appears to have educated themselves on how 
to proceedthanks to the seminars and workshops organized by some 
foreign banks here.
The International Chambers of Commerce and Industry has already 
published a document detailing important features of international 
business transactions in Euro but no major trade body has so far 
obtained its copies for its members.
In the inter-bank market confusion persists on whether Pakistan 
will convert some of its foreign exchange reserves in the Euro or 
not and how much liberty the central bank would accord to the banks 
with regard to change of their foreign exchange obligations from 
individual currencies of 11 countries of the Eurozone to the Euro.

FCAs deposits utilized: LHC
Shujaat Ali Khan

LAHORE, Dec 9: Any declaration in favour of foreign currency 
account holders will be futile if the deposits have already been 
utilized by the government, Justice Mian Allah Nawaz, senior member 
of the Lahore High Court bench hearing the FCAs case, told the 
petitioners' counsel on Wednesday, making it clear that the court 
would not like to make a futile declaration.
The counsel said neither the government nor the State Bank has made 
a statement to the effect. In fact, both have denied 'the 
allegation' in their written statements and according to Deputy 
Attorney-General Sher Zaman Khan, a finance division official came 
from Islamabad to contradict the assertions made by (the then) 
finance minister Sartaj Aziz in this regard in an article written 
by him and published on Aug 8.
They said the alleged appropriation of forex deposits should not 
work as a constraint on the court and in any case, it does not 
stand in the way of striking down the liquidation of securities 
The hearing was adjourned to Thursday for SBP counsel Abid Hasan 
Minto's arguments.
At the end of Wednesday's proceedings a petitioner, Riaz A Mian, 
complained that though he represented a US-based firm, he has not 
been allowed the exemption extended by SBP circular No 17 to 
resident representatives of foreign concerns on account of his 
Pakistani origin. His representation to SBP Governor Dr Mohammad 
Yaqub has been of no avail. The complaint would be probed, Mr Minto 
promised on behalf of the SBP.
The first to address the court on Wednesday was Advocate Imtiaz 
Rashid Siddiqui, who submitted that his clients had obtained 
industrial loans against their FCAs. Even if the SBP governor's 
statement, on the basis of which Justice Faqir Mohammad Khokhar 
dismissed their petitions, that liquidation was ordered to prevent 
speculators from buying more dollars with their loans was accepted 
as gospel truth, their accounts should remain intact as security 
because they were tied down to industrial loans.
Arguing next, Advocate Jawaid Shaukat Malik said that the 
Protection of Economic Reforms Act, 1992, extended cast-iron 
guarantees to FCAs, which cannot be annulled by a temporary law 
suspending forex dealings, particularly when the 1992 law has not 
been repealed. He said 'freezing of assets' was an action provided 
against Ehtesab cases accused and ordinary, innocent citizens 
should not be subject to it.
Strangely enough, he added, the government was prepared to pay a 
hefty amount as interest on dollar bonds issued against forex 
deposits but was not ready to defreeze the foreign accounts or even 
treat them as fixed accounts for specific periods. Where would the 
government get the forex to pay the principal amounts and interest 
on maturity of bonds? he asked. "Who is going to act on the 
government's promises now? That the SBP is not prepared to accept 
FCAs as fixed deposits but wants to pay a higher interest on three-
year bonds betrays its malicious intent," the lawyer said.
Arguing for self, Advocate M Asadullah Siddiqui submitted that the 
right to acquire, hold and dispose of property ensured by Article 
23 could not be infringed even during emergency because Article 
233(1) permits temporary deviation from Article 24 only.
Pakistan's parliament, he said, was not supreme in its own right 
like those of secular countries. It exercises power delegated to 
the chosen public representatives by the Almighty and since He does 
not alter His promises, the delegatee can also not go back on the 
commitments made by it through the 1992 law.
When the bench pointed out that the 1992 law exempted forex 
deposits from the mandatory Islamic levy of Zakat, the lawyer 
rejoined that a Zakat fund doled out to ministers, MNAs and MPAs 
was anything but Islamic. Any exemption from such Zakat was not un-
Besides, he argued, while the 1992 law was adopted by both the 
houses of Parliament, the 1998 Foreign Exchange (Temporary) 
Restrictions Act was not placed before the Senate on the pretext of 
its being a money bill. The real reason was that it would have been 
rejected by the Upper House.
$4.11bn FCY deposits encashed in 6 months
Mohiuddin Aazim

KARACHI, Dec 10: Some $4.11 billion worth of foreign currency 
deposits (FCDs) were encashed in over last six months reducing the 
total amount of frozen FCDs to $6.89 billion on December 9 from 
around $11 billion on May 28.
Senior bankers told Dawn that nearly $3.876 billion worth of FCDs 
were converted into rupees and $234 million worth of FCDs into 
dollar bonds during May 28 to December 9 1998. The banking system 
had a total of around $11 billion worth of FCDs when frozen in May.
The conversion of $3.876 billion worth of FCDs into rupees created 
a permanent huge liquidity of a little more than Rs178 billion only 
a part of which came back to the banking system  thanks to some 
attractive deposit winning schemes launched by the banks. It also 
created an additional liquidity of around Rs90 billion for the time 
being through conversion of FCDs into dollar bonds issued under 
revised scheme.
Banks were allowed to use the rupee counterpart of the dollar bonds 
being issued against FCDs initially for one year in the middle of 
last month when the State Bank issued policy guidelines for the 
implementation of the revised dollar bonds scheme.
But the banks were asked to pay a return on such rupee funds at the 
rate equal to the average of the yield on six-monthly Treasury 
Bills offered in the last three auctions. Senior bankers say a 
little less than $200 million worth of FCDs were converted into 
dollar bonds after the scheme was introduced early last month.
They say that the pace of conversion of FCDs into dollar bonds has 
picked up after the introduction of the revised scheme which offers 
increased rate of return on reduced periods of maturity. Senior 
bankers believe if the pace continues the amount of frozen foreign 
currency deposits might be reduced sharply in the days to come. But 
what is disturbing is that in the last six months banks have not 
found enough room for employing the rupee funds created out of 
conversion of FCDs partly because of the near-recession like 
situation that hit Pakistan economy and partly due to seasonal 
slump in the demand for private sector credit.
Project financing  a major avenue for funds employment by the 
banks  is not going to claim any big share in the huge liquidity 
available with the banks as long term investment activities are 
currently at a near-halt. Besides banks are also being extra 
cautious in project lending in the light of their bad experiences 
in the past.

Only one company listed on KSE in 1998
A Correspondent

KARACHI, Dec 10: The Karachi Stock Exchange listed only one company 
during 1998 - the least figure during the last five years.
Only Altern Energy Limited with a paid-up capital of Rs221 million 
was listed up to September 30, 1998. There was also only one 
listing of Term Finance Certificate offered by Gatron Industries 
The number of total listed companies also fell to 774 from 781 last 
year as exchange delisted 8 companies by November, 1998.
During the period under review, very few companies raised the 
equity for expansion as the amount raised through right shares fell 
to over Rs533 million compared to Rs2.8 billion in 1997.
The amount of bonus issues also recorded a decline and it dropped 
to Rs2 billion against Rs2.8 billion last year. However, paid-up 
capital of the exchange increased to Rs211.4 billion from Rs208.8 
billion last year.
According to the report only Rs221 million were added in the 
companies' listed capital compared to Rs2270 million in 1997.
"The market saw one of the worst years in its history when the KSE 
100 index lost 651 points and lost Rs160 billion in terms of market 
capitalization during just 19 trading sessions", said KSE annual 
report released on Thursday at the Annual General Meeting of the 
On the future outlook, report says that comprehensive rules for the 
debt market are under way which will pave the way for short to long 
term listing of new debt instruments.
"The listing regulations of the exchange are being updated to 
ensure the quality listing", it says.
In the Annual General Meeting, members were also presented the 
financial results of KSE for year ended 30th June, 1998. The total 
revenues of the exchange were Rs93.76 million down by 7.3 per cent 
compared to last year.
These fall in revenues was attributed to a substantial drop in the 
listing fee by Rs20.2 million.

Forex reserves up at $476m

KARACHI, Dec 10: Pakistan foreign exchange reserves witnessed a 
nominal increase of $4 million in the first week of this month. The 
reserves rose to $476 million on December 5 from $472 million on 
November 28.
The latest State Bank report issued on Thursday showed that on 
December 5 Pakistan had $345 million worth of approved forex 
reserves and $131 million worth of balances outside the country. On 
November 28 the country had the same amount of approved forex 
reserves but cash and short term securities held abroad totalled 
$127 million.
The nominal increase in the reserves is attributable to faster 
inflow of export proceeds into the financial system and rolling 
over of some commercial credit.
In the middle of this month the State Bank cut Nostro limits and 
Net open positions of the banks and reduced the permissible period 
for the exporters to sell 50 per cent export proceeds to the banks.
Bankers say the twin measures accelerated inflow of foreign 
exchange on the one hand and contained outflow through import 
financing on the other which led to a continual build-up in the 
forex reserves.

Stocks fail to extend rally, lose 10.06 points
By Our Staff Reporter

KARACHI, Dec 11: The overnight rally failed to extend itself 
further on Friday as investors took profits at the available 
margins owing mainly to weekend considerations but larger decline 
was resisted thanks to the presence of support at the dips in some 
of the pivotals.
After falling by more than 30 points in the early session, the KSE 
100-share index finally managed to recoup losses and ended with a 
decline of 10.06 points at 939.30 as compared to 949.36 a day 
The total market capitalization also fell by Rs 2.235 billion at Rs 
267.529 billion as compared to Rs 269.764 billion, reflecting the 
weakness of massively capitalized issues, notably PTCL.
Analysts said the sharp contraction in trading volume to only 52 
million shares from an average 80 million shares reflects that 
leading investors are not inclined to part with their holding, 
apparently for some good reasons.
"The general perception is this that sailing on the corporate front 
will be pretty smooth as the hold on the bail-out package is 
expected to be removed by early next year, possibly in January 8 
IMF meeting," they said.
The current lower levels attained by most of the pivotals provide 
an attractive bait for any prospective investor and those who have 
the courage to take risk are building up long positions in them, 
they added.
Shell Pakistan, PSO, Engro Chemical, Fauji Fertilizer, Hub-Power 
and many other blue chips have the potential to rise to their pre-
reaction level in a given situation, said another analyst.
"The market could witness a buying euphoria with the advent of the 
new year and leading investors and brokerage houses are adjusting 
portfolios to grab the choice scrips at the current levels," he 
He apparently based his assessment on the fact that the aid package 
will be approved by IMF board when it meets on January 8 and the 
approval will also lead the way for the recently approved $800 
million credit line by the ADB.
"The indicators on the aid front appears to be now a bit promising 
and if all goes along the market thinking, there could a price 
flare-up," he predicted.
Most of the blue chips again fell but fractionally as selling came 
largely from the jobbers and short-dealers, while others held on to 
their positions.
It was largely weakness of the energy, bank and chemical sectors 
which took the market again in the minus column as follow-up 
support turned shy owing partly to weekend considerations.
Although losers maintained a fair lead over the gainers, some of 
the blue chips managed to put on good gains under the lead of PSO, 
Pakistan Refinery, Pak Elektron, Sitara Energy, Shifa 
International, Shell Pakistan and Glaxo-Wellcome Pakistan, which 
posted gains ranging from one rupee to Rs 5.00. English Leasing 
reacted favourably to the news of 20 per cent cash dividend 
announced by its management for the year ended June 30, 1998. It 
finished with a gain of one rupee.
Losers were led by Soneri Bank, Gadoon Textiles, General Tyre, BOC 
Pakistan, Colgate Pakistan, Lever Brothers and Millat Tractors, 
which suffered decline ranging from Rs 1.10 to Rs 4.00.
Trading volume fell to 53 million shares from the previous 84 
million shares. Losers held a strong lead over the gainers at 60 to 
29 with 34 shares holding on to the last levels.
The most active list was again topped by PTCL, off 40 paisa at Rs 
18.95 on 21 million shares, followed by Hub-Power, easy five paisa 
at Rs 14.10, Fauji Fertilizer, lower 70 paisa at Rs 45.05 on 6 
million shares, PSO, up Rs Rs 1.15 at Rs 75.40 on 5 million shares, 
and KESC, easy 25 paisa at Rs 8.85 on 1.557 million shares.
Other actively traded shares were led by ICI Pakistan, lower 25 
paisa on 1.105 million shares, Engro Chemical, off 75 paisa on 
1.079 million shares, MCB, easy 25 paisa on 0.916 million shares, 
Dewan Salman, off 60 paisa on 0.854 million shares, FFC-Jordan 
Fertilizer, lower five paisa on 0.550 million shares, and Dhan 

Fibre, easy 120 paisa on 0.487 million shares.
DIVIDEND: Indus Bank right shares at the rate of 66.67 per cent and 
English Leasing cash 20 per cent for the year ended June 30, 1998.

Back to the top
The city of Karachi-2 
Ardeshir Cowasjee

TO SAY that the vast majority of the men and women who misgovern 
Pakistan are morally and mentally flawed is a gross understatement. 
To say that those who sit in opposition are equally, if not more, 
fatally flawed is also an understatement.
We must, therefore, correctly assume that in the short term, say, 
of fifteen years, no progress or improvement can be expected in the 
governance of this country. It will not be governed, as opposed to 
ruled, within the bounds of democracy even as we accept the 
definition of the practice of that political system.
We have just handed to the US irrefutable proof that we as a nation 
meekly suffer a government of clowns. We sent to Washington 120 
trippers to carry our empty begging bowl. The size of the circus 
undoubtedly helped lower to VIP-2(B) the category of the official 
welcome afforded. President Clinton threw in a couple of sops, 
barely replenishing the life supporting system. Can the prime 
minister not realize that we are being kept alive in the critical 
care unit because the morgue is full?
As for the city of Karachi, it will for long, until the present 
system and its manipulators are revolutionized, remain 
ungovernable. We who live here must thank our stars for any respite 
good luck may bestow on us. That the last incompetent and corrupt 
coalition government of Sindh broke up and vanished is a boon. That 
our prime minister, in a rare fit of wisdom, finally made up his 
mind to impose governor's rule, and that the sitting governor 
happens to be a reasonable man, are two further strokes of good 
luck. For their own safety and sustainability, the people of 
Karachi must now take the maximum advantage of the present 
situation, and waste no time in an effort to try to set some things 
as right as is possible.
The fish has rotted from the head downwards, but this does not mean 
that we cannot start a salving and healing process from the tail 
upwards  the tail being the killings, the violence, and 
maladministration with particular regard to the police force.
Coincidentally, with governor's rule, a Colombian team sponsored by 
the UNDP, arrived in Karachi  facilitator Dr Paul Oquist, chief of 
the Governance Unit of the UNDP based in Islamabad, mission chief 
Dr Dario Barberena, Coordinator of the Colombian High Commission 
for Peace, and Dr Edgar Suarez, a former police chief and now 
adviser to the Colombian Presidency High Commission for Peace. They 
are hardened men, used to dealing with the methods adopted by 
terrorists, drug dealers and other dangerous criminals. Their 
objective was "to contribute to the restoration of sustainable 
peace and citizens' rights and security" in Karachi, no mean a 
The Colombians recommended deweaponization as the first step. To 
achieve this, we need: computerised re-registration of arms; a 
geographic information system and spatial crime analysis; voluntary 
and paid surrender of arms, and amnesty for petty criminals who 
surrender; rewards for information leading to arms recovery; a mass 
media campaign; CPLC and other NGO participation; direct campaigns 
by parents, teachers, students and mosques; surprise raids and 
speedy punishments; swift and strict action against arms and drug 
smuggling; control of national arms production and infiltration.
The second recommendation was the formation of the Metropolitan 
Police. The police force must be depoliticized, controlled by an 
autonomous police commission; it must be technically equipped, 
modernized and professionalized. Needed are municipal and community 
contributions for funding. Salaries and social benefits for the 
police force need to be at least doubled, and its members will have 
to be subjected to a cultural change whereby they gain self-
respect. Similarly, public confidence and respect will have to be 
built up. The citizens and their rights are to be defended, not the 
politicians and their powers, and the community will have to learn 
to participate in policing.
Next in their recommendations were judicial reforms, jail reforms 
and the legal protection of citizens' rights.
The team was here for ten days and during that period talked to a 
cross-section of around 200 citizens of Karachi, including 
politicians of the MQM, the PML, the PPP and the JI (the MQM-H was 
non-cooperative, laid down unrealistic preconditions, and a meeting 
could not be arranged), businessmen, journalists, bureaucrats, and, 
of course, members of the city's police force.
I met them at the end of their visit. They were obviously field 
men, not mere pen-pushers. They answered my questions succintly. If 
you think you have touched bottom, you are wrong. Living conditions 
will worsen a lot if the rot is not stemmed. You have a long way to 
go. Sustainable peace may be achieved after fifteen years from the 
start, and then too only if you consistently have governments with 
a singular will for peace, lasting peace. You are fortunate in 
having an NGO as organized, as efficient, and as clued-up as the 
CPLC. The CPLC data base will enable the about-to-be- organized 
Karachi Metropolitan Police Department to take off with a flying 
start.  From the number of people killed or kidnapped, from the 
tally of vehicles stolen, assess for yourselves, citizens of 
Karachi, how the PML-MQM coalition government has served this city.
Killings : 1997: Jan - 6, Feb - 8, (enter Jatoi & partners), March 
- 22, April - 26, May - 34, June - 67, July - 72, August - 52, Sept 
- 17, Oct - 27, Nov - 42, Dec - 23; Total 396, including 64 MQM(A), 
53 MQM(H). 1998: Jan - 30, Feb - 45, March - 43, April - 41, May - 
57, June - 139, July - 76, August - 79, Sept - 62, Oct - 70, (exit 

J&P). Nov - 9; Total 651, including 125 MQM(A), 69 MQM(H).
Kidnappings : (Three figures are given for each year - kidnappings 
for ransom; criminals arrested/cases solved; organized gangs 
unearthed/apprehended.) 1990  79, 68, 8; 1991  45, 43, 24; 1992  
22, 17, 9; 1993  9, 7, 5; 1994  15, 12, 4; 1995  8, 6, 3; 1996  
7, 4, 4; (enter J&P) 1997  19, 15, 7; 1998  20, 14, 7. Ninety-
nine per cent of the success is attributable to the CPLC and the 
detection system it has delivered.
Vehicles stolen : Two figures are given for each month (four 
wheelers, two wheelers) 1997  Jan - 371, 456; Feb - 348, 435; 
(enter J&P) March - 507, 721; April - 581, 759; May - 468, 624; 
June - 445, 564; July - 504, 617; Aug - 524, 658; Sept - 544, 669; 
Oct - 487, 549; Nov - 434, 613; Dec - 517, 576; 1998  Jan - 539, 
817; Feb - 549, 538; March - 658, 690; April - 612, 735; May - 504, 
676; June - 614, 771; July - 539, 668; Aug - 641, 646; Sept - 628, 
651; Oct - 742, 600; (exit Jatoi & Partners) Nov - 414, 391.
These statistics are not police figures, but people's figures, 
collated by the CPLC, the NGO of the people, financed by them. 
Taking the above figures and those for other crimes, such as land-
grabbing, illegal constructions, and other forms of corruption, one 
finds that their graph follows the same pattern.
My bureacratic friends, both retired and serving, tend to decry the 
efforts and achievements of the CPLC. Despite the prime minister's 
endorsement and the governor's insistence, certain serving head-
honchos are still surreptitiously blocking the establishment of the 
Karachi Metropolitan Police. If there is to be progress, they 
should be transferred. Bureaucrats are extremely jealous of their 
territory and highly resentful when another breed delivers what 
they have failed to deliver. This, as Soros says, is because they 
are more interested in self- preservation than in carrying out 
their duties. When I ask the retired and other sceptics, whether 
they would like to help the CPLC by donating time or money, they 
J&P are letting it be known, unsubtly, that they intend to be back 
with us soon, that moves are afoot for a kiss-and-make-up scenario 
and the PML-MQM combine will then be ready to climb back into bed 
together. But do we want them, or a similar lot, back? Jatoi and 
his family are so confident that they have not bothered to return 
their commandeered government vehicles  son Jatoi, brother-in-law 
Jatoi, third cousin twice removed Jatoi, and so on. They not only 
have cars, but police mobiles in attendance. Jatoi still indulges 
in his illegal practice of ordering that traffic lights be switched 
off along the route he is to travel so that he is not 
inconvenienced by having to stop. Let the rest of us boil! Will the 
new IGP please ensure that this malpractice ceases.

Between a rock and a hard place
Irfan Husain

IN Pakistan, it seems that when the going gets tough, the tough go 
to Washington. At last count, 120 of them made the trip, and the 
exchequer is still reeling from the blow.
According to press reports, no tangible benefits accrued to the 
state of Pakistan, and apart from the PM's party being upgraded 
from the Cumberland to the Hilton in London on the return trip, the 
freeloaders contributed nothing to the proceedings. We are informed 
by reporters who accompanied this three-ring circus that the beds 
in the 4-star Cumberland were not wide enough for our cabinet 
ministers, hence they moved to the more expensive Hilton. But hey, 
who's counting the pounds and dollars when Mr Nawaz Sharif hits the 
road? Did anybody say we are going through a foreign exchange 
The fact that our PM's visit to Washington was scarcely noted by 
the US media should come as no surprise: reporters and editors in 
the American capitol are hardened to the sight of Third World 
leaders coming to the White House, begging bowl in hand. 
Fortunately for our spin doctors, nobody was impolite enough to 
mention aloud Nawaz Sharif's famous vow to break this same begging 
bowl, and our collective memory is too short to remind him of this 
embarrassing promise. But then we have all heard politicians make 
and break all kinds of solemn oaths. What annoys me most is that my 
mother was naive enough to believe him and actually contributed to 
his "self-reliance fund", as, I fear, did thousands of other 
But more serious than individual disillusionment is the state of 
the Pakistani economy in the aftermath of Mr Sharif's Washington 
visit. Normally, the details and mechanics of a deal are worked out 
beforehand by the economic and diplomatic managers of the two 
countries, and the leaders smile for the cameras and sign on the 
dotted line. The fact that this well-worn formula did not work this 
time bodes ill for our future. This dismal truth was drummed home 
when the IMF board abruptly postponed its meeting scheduled for 
December 15 without setting a date for the next meeting to confirm 
the bailout package negotiated earlier in Islamabad.  Nawaz Sharif 
goofed yet again when he linked our signing the CTBT with a 
resolution of the Kashmir issue. Although he recanted in London, 
the damage had been done. Whether we like it or not  and millions 
of Pakistanis do not  the plain, unadorned fact is that without 
Uncle Sam's blessings, there are virtually no loans available from 
bilateral or multilateral donors at reasonable rates of interest. 
Our further downgrading by international credit rating agencies has 
ensured that commercial loans will be granted grudgingly and at 
extortionate interest rates. And if we don't like it, tough. This 
is the only game in town, and if we don't want to play by the rules 
laid down by the richest player, we are free to find another game 
With our baggage of impending default and looming economic 
meltdown, for a responsible leader to travel to Washington with a 
serious attitude problem is mind-boggling. If all he had planned to 
do in the White House was to remain on his high horse, Nawaz Sharif 
could have stayed in Islamabad and saved us all a lot of money. Did 
his motley crew have to hire 50 limousines at $50 per hour, 
commandeer a PIA Airbus and visit Niagara Falls at state expense 
just to tell Bill Clinton that we were not going to budge an inch? 
I mean, given me a break! Why didn't the man use the diplomatic bag 
to send a letter, or use e-mail like the rest of us?
The deadlock in our negotiations with the IMF and the US regarding 
some sort of bailout is mirrored in the stalemate in our talks with 
India. The usual one step forward, two steps back is being repeated 
with predictable results. After each desultory session, we are told 
by official spokesman that "both sides made their positions clear." 
This moronic statement overlooks the fact that after fifty years of 
bickering, even Eskimos in the Arctic Circle are familiar with the 
tired arguments put forward by India and Pakistan. Enough, already.
One of the first things negotiators need to learn is that you never 
get everything you ask for. This is doubly true when one is 
negotiating from a position of weakness. And God knows we have a 
very weak bargaining position: India has the real estate we covet 
and the military and economic might to hang on to it. And if it 
doesn't have a strong legal case, it doesn't seem unduly concerned. 
Meanwhile, we continue to harp on Kashmir without anybody in the 
world giving a damn.
Our bargaining position in Washington is even weaker: it does not 
take a genius to figure out that our economy is in free fall, and 
unless we get a swift infusion of dollars, there is no way we are 
going to stay solvent. This means that very soon, we will be unable 
to pay for imported oil, grain, raw material and spare parts. Under 
these circumstances, for Nawaz Sharif to go all the way to 
Washington just to repeat the old Kashmir mantra leads one to 
suspect that our leader with the heavy mandate is losing his 
After observing him and his merry men in action for nearly two 
years now, one despairs of ever getting sane leadership in 
Islamabad. This was the leader who was supposed to be a rational 
businessman who would use his overwhelming parliamentary majority 
to put the economy back on keel after Benazir Bhutto's 
depredations. Now, as we watch the economy sink slowly under the 
weight of criminal corruption and mismanagement, all we can do is 
wonder when it will actually be put out of its misery. If our 
current credit rating is any indicator, that moment is not very far 
Although the two sets of failed negotiations in Washington and New 
Delhi have taken place thousands of miles apart, let nobody doubt 
that they are the two sides of the same coin. We are begging the 
IMF (and by extension, the US) for a lifeline to save us from a 
situation created by our generations-long animosity with India. A 
bailout  should one miraculously materialize out of the disastrous 
Washington visit  will be a very temporary respite. What is needed 
for our long-term viability is a quick resolution of the festering 
Kashmir problem.
Having the law on your side isn't always enough: sometimes you need 
some common sense, too.

Malik 2nd Pakistani to play 100 Tests

LAHORE, Dec 10: Salim Malik has joined the select club of the 20 
cricketers who have a century of test matches to their credit. He 
achieved the landmark when he played the second Test against 
Zimbabwe which started here at the Gaddafi Stadium on Thursday.
Salim Malik is only the second Pakistani after Javed Miandad who 
achieved this distinction.
Salim Malik cut a cake during the tea interval to celebrate the 
occasion.   Malik has scored 5639 runs in Test cricket with an 
average of 45.11.
The other 19 world cricketers who played 100 Test matches before 
are: Allan Border (156) of Australia, Kapil Dev (131) and Sunil 
Gavaskar (125) of India, Javed Miandad (124) of Pakistan, Vivian 
Richards (121) of West Indies, Graham Gooch (118) of England, David 
Gower (117) of England, Desmond Haynes (116) of West Indies, Dilip 
Vengsarkar (116) of India, Colin Cowdrey (114) of England, Clive 
Lloyd (110) of West Indies, Geoffery Boycott (108) of England, 
Gordan Greenidge (108) of West Indies, Steve Waugh (108), Ian Healy 
(108), David Boon (107) of Australia, Courtney Walsh (103) of West 
Indies, Ian Botham (102) of England and Mark Taylor (101) of 

Pakistan, India hope to down South Korea

BANGKOK, Dec 7: Traditional hockey skills are set for a dramatic 
revival as former giants India and Pakistan attempt to dislodge 
South Korea from the Asian Games pinnacle.
The 10-nation men's tournament, which starts here on Tuesday, 
assumes added significance as the winner gains a direct entry into 
the 2000 Sydney Olympics and leaves the rest battling a trecherous 
qualifying route.
The supremely-fit Koreans rode on their aggressive European style 
to end the sub-continent's domination by winning two of the last 
three Asian Games titles.
South Korea's wins at home in Seoul in 1986 and in Hiroshima in 
1994 forced India and Pakistan to modify their tactics, a decision 
that proved disastrous for both teams.
India, eight-time Olympic champions, finished eight in the Atlanta 
Olympics and ninth at this year's World Cup in the Netherlands.
Pakistan, who won their seventh Asian Games title in 1990 and the 
World Cup in 1994, failed to make the finals of both events next 
time around.
Worried officials in both countries reacted swiftly.
Pakistan sacked coach Islaluddin Siddiqui and stalwarts like 
versatile playmaker Shahbaz Ahmed and gooalkeeper Mansoor Ahmed.
India, with little reserve strength to choose from, retained the 
players but brought in a new coach Maharaj Kishen Kaushik.
Pakistan's current coach Shahnaz Sheikh, a former international, 
said it was a mistake to ape the Europeans.
"We have overhauled the whole team. Nearly 75 percent of the team 
has been changed after the Commonwealth Games in September and the 
improvement is already showing."
Pakistan, which failed to reach the semi-finals of the Commonwealth 
Games, finished runner-up to the Netherlands at last month's 
Champions Trophy in Lahore.
Shahnaz, like his Indian counterpart Kaushik, knows the Koreans 
will be hard to beat, but he remains optimistic.
"I think we have found a clue to match the aggressive Korean 
strategy. We are ready for them," he said, but warned the absence 
of injured captain Mohammad Usman could prove crucial for his 
team's chances.
The Koreans, however, have little to fear. They defeated India in 
both the Atlanta Olympics and the World Cup and overcame Pakistan 
4-2 in the recent Champions Trophy.
"We want to win badly," a South Korean official said. "It will take 
the pressure off us for the Olympics and allow us to experiment for 
the next two years."
India, who have the Koreans in their preliminary group alongwith 
China, Bangladesh and Singapore, realise this tournament is a last-
ditch opportunity to return to the elite group.
If India come second behind the Koreans in the league, they face a 
tough semi-final against Pakistan, who are expected to top the 
other group ahead of Malaysia, Japan, Thailand and Hong Kong.
Malaysia, who rode on the inspiring presence of their German coach 
Paul Lissek to enter the Commonwealth Games final, are beset with 
Lissek was not released by the German hockey federation for the 
Asian Games and the retirement of veterans Nor Saiful and Ramu 
Shankar has left a void.
Malaysia lost a three-match series to lowly Egypt last fortnight, 
including a 63 rout in the opening match. Captain Mirnawan Nawawi 
remains their main hope to secure a seventh Asiad bronze.
In the women's event, it is hard to look beyond South Korea, who 
have won three successive Asian Games titles.
The Korean girls finished fifth in the last World Cup, way ahead of 
their nearest Asian rivals China (11th) and India (12th).AFP

Amjad to face Zarak in final

BANGKOK, Dec 11: Amjad Khan reached the final of the Asian Games 
squash here Friday to make it an all-Pakistan final.

Amjad, currently ranked world No 15, easily defeated Abdul Fahim 
Khan of Hong Kong 9-0, 9-3, 9-3 in the first semi-final.
Team-mate Zarak Jahan Khan, the reigning Asian champion, won the 
other semi-final against Malaysia's Ewe-Loong Low to ensure 
Pakistan the expected 1-2 positions in the first squash competition 
at the Asian Games.

Zarak struggled 10-8, 9-7 in the first two games against the 
Malaysian, before romping through the third without dropping a 
The final will played on Saturday.
Earlier in the quarter-finals, Amjad beat Ong beng Hee of Malaysia 
9-3, 95, 7-9, 10-8 while Zarak defeated Mohammad El Sad 9-6, 5-9, 
9-2, 9-7.AFP

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