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CONTENTS ===================================================================
NATIONAL NEWS + Pakistan warns of suitable response: Indian troop build-up on LoC + PM to get daily report on sales tax evaders + PPP requisitions session as Sindh PA prorogued + Parliament alone will decide on CTBT: Nawaz + Clinton, PM discussed Kashmir & NPT + No alliance possible with PPP or PML, says Farooq + Rare coins disappear from city museum + Petition seeks census after every 10 years + Abbasi in NY to get loans for new PIA planes + Seafood export to EU resumes on Oct 1 --------------------------------- BUSINESS & ECONOMY + IMF mission begins talks with govt + CBR recomputing IT exemption losses in state units + Withdrawal from FCAs: Govt fails to furnish list of depositors + Phone going beyond common man's reach + Continental AG to buy 40pc share in GTR Pakistan + Capital restrictions $60 million investment being liquidated + Sales tax collection up Rs1.6bn in July-Aug + US firm to invest $3.55 million in oil, gas sector + Forex rates within fixed band for kerb trading + KSE index gains 25.51 points on strong buying --------------------------------------- EDITORIALS & FEATURES + Not the business of the state Ardeshir Cowasjee + The feudal spirit Irfan Husain + Maker of Muslim India's destiny Prof. Sharif al Mujahid ----------- SPORTS + Jansher's fitness cause for concern in squash circles + Pakistan manage to beat Kenya 5-4 in hockey + Yousuf sounds warning to many pretenders

Pakistan warns of suitable response: Indian troop build-up on LoC
ISLAMABAD, Sept 11: Pakistan said on Friday that Indian troops had 
stepped up activity in a threatening posture along the border of 
Kashmir and warned of a "suitable"response to any adventure.
The Indian forces "have been indulging in indiscriminate firing"
all along the Line of Control (LoC) for the past week, using heavy 
artillery, rockets and other weapons, a defence ministry spokesman 
The Indians have moved forward some heavy artillery pieces in the 
recent past with the help of helicopters while moving some 
logistics and command installations further backward, the spokesman 
said in a statement.
The "ominous"preparations indicated the possibility of the Indians 
undertaking another "fire offensive"across the LoC to target the 
civilian population as was done in August, the spokesman said.
The Pakistani armed forces have made arrangements for a "suitable 
response"and "are fully prepared and equipped to thwart the 
nefarious designs of the enemy,"the statement warned.
The spokesman linked the increased military activity in Kashmir to 
the old tactics of the Indians restoring to offensive postures to 
scuttle any chance of peace negotiations from taking a definite 
He said the Indians resorted to unprovoked firing and heightening 
tension along the LoC whenever there was an opportunity for 
bilateral negotiations.
The spokesman noted that Prime Minister Nawaz Sharif and his Indian 
counterpart Atal Behari Vajpayee were scheduled to meet in New York 
later this month during the current UN General Assembly and take up 
the Kashmir issue.
India had resorted to unprovoked firing on the civilian population 
from across the Line of Control in August that claimed scores of 
The unprovoked Indian shelling had taken place at a time when Prime 
Minister Nawaz Sharif and Atal Behari Vajapayee were meeting on the 
sidelines of the SAARC summit in Male.Agencies

PM to get daily report on sales tax evaders 
Ikram Hoti
ISLAMABAD, Sept 11: The Chairman Central Board of Revenue, 
Moinuddin Khan has instructed the Sales Tax Department to continue 
sending daily report on evaders for submission to the prime 
minister for initiating action against tax recovery.
The CBR officials say the ST evaders owe about Rs11 billion after 
scores of them were forced to pay the dues in the past two 
Sources told Dawn that the practice of submitting daily report on 
the ST evaders has helped to increase the amounts deposited from 
the listed evasions.
They explained that the daily report is being prepared since last 
month, after the prime minister asked the CBR to compute a final 
report on ST evaders holding large amounts in ST during the 
financial year 1997-98.
The figure Rs16 billion evasion computed by the end of 1997-98 
financial year, was submitted for the first time, while the last 
report submitted carried the figure of Rs11.5 billion, said CBR 
officials. Presently the evaded ST stands around Rs11 billion, and, 
"we are steadily but surely getting to our goal of getting at least 
Rs5 billion out of these evaders toward the middle of the current 
financial year", said one official.
He said the CBR is also facing problems in getting this money out 
since the lack of staff at the collectorates is affecting swift 
recovery drive. But the latest powers allowed to the CBR chairman 
have brought renewed hopes that he would be enrolling more staff on 
the tax-recovery side, he said.
The Sales Tax Department has improved collection by Rs1 billion in 
months of July and August, 98.

PPP requisitions session as Sindh PA prorogued
KARACHI, Sept 10: The PPPP on Thursday requisitioned the Sindh 
Assembly session to move a resolution of no-confidence against the 
Sindh chief minister, Liaquat Jatoi, after the house was prorogued 
amid uproar.
Announcing this at a news conference, the leader of the PPP in the 
house, Nisar Khuhro, said his party believed that the chief 
minister had lost the confidence of the majority of the house.
Mr Khuhro said the notice had been signed by 32 MPAs.
Earlier, amid pandemonium the government of Chief Minister Jatoi 
suffered a moral defeat in the house when he had to seek refuge 
under an unexpected prorogation order to avoid a division on the 
admissibility of motions against the 15th Amendment Bill and 
killing of activists of the Muttahida Qaumi Movement.
This was despite Mr Jatoi�s categorical assurance on the floor of 
the house on Wednesday that the session would not be adjourned on 
The events endangered the democratic dispensation in the province 
with snowballing effect for the centre.
Parliament alone will decide on CTBT: Nawaz
ISLAMABAD, Sept 11: Prime Minister Nawaz Sharif said here on Friday 
that only parliament was authorized to take a decision on the issue 
of CTBT and added that Pakistan would not sign the treaty under 
Speaking at the joint session of parliament, Prime Minister Nawaz 
Sharif said it was for the first time in the history of Pakistan 
that the government had decided to 
hold debate on such an important issue.
Previously, such decisions were taken by a group of people, he 
said. The prime minister said that the decision to hold debate at 
the joint session indicated the PML government�s commitment to 
democracy. He said that even though the National Assembly reflected 
the aspirations of the people of Pakistan, the government decided 
to take along the Senate on the issue.
Mr Sharif regretted that the opposition chose to walk out from the 
joint session even before ascertaining the view of the government. 
He said he was firmly of the view that the government and the 
opposition must sit together and make collective efforts to chalk 
out a strategy so that a decision in the national interest could be 
taken on the CTBT issue. The prime minister was addressing the 
joint session at around 6-20pm when he had to stop following Azan. 
Mr Sharif said he would complete his speech after Azan but could 
not do so as the speaker announced the adjournment of the joint 
session till 5-30pm on Monday. Foreign Minister Sartaj Aziz had 
spoken on CTBT before the PM�s address.
Earlier, after presiding over the PML Parliamentary Party meeting, 
Nawaz Sharif told newsmen he had apprised the members of his party 
on the government�s stand on CTBT and about reservations the 
government had on the issue.
The prime minister said both the cabinet and the DCC had discussed 
the CTBT thoroughly but both had left the ultimate decision on 

Clinton, PM discussed Kashmir & NPT
WASHINGTON, Sept 9: President Bill Clinton�s unexpected phone call 
to Prime Minister Nawaz Sharif on Tuesday "to follow up"on 
Talbott-Shamshad talks, means Washington is urgently seeking top-
level commitments from Islamabad which could not be handled by the 
officials, diplomatic observers and experts said on Wednesday.
White House spokesman Mike McCurry revealed at his briefing on 
Tuesday that the two leaders had discussed "a full range of issues, 
regional economy in Asia, proliferation matters, non-proliferation 
treaty and Kashmir."
But the most significant piece of information he gave was that Mr 
Clinton "followed up directly with the prime minister on some 
things that arose in conversations that Deputy Secretary Talbott 
had in his meetings a week ago (with Foreign Secretary Shamshad)."
Experts said this was a clear indication that the two sides were 
stuck on some points and the leaders had to intervene to sort them 
out, specially in view of the developments taking place on the 
sidelines in Pakistan regarding the signing of the CTBT.
These developments, according to one expert, included the 
surprising decision of the government to refer the signing of the 
CTBT to parliament for a debate, when normally governments try to 
keep critical issues out of public debate.
"On CTBT a consensus in Pakistan almost exists as opposition leader 
Benazir Bhutto and other important politicians have already 
demanded that Pakistan should sign the treaty while Nawaz Sharif 
government has also delinked the signing from the ages old linkage 
with India."
Thus the discussion in Pakistan parliament was a "delaying tactic"
by Pakistan as leaders await the US response on the other critical 
issue of bailing out the Pakistan economy through the IMF, experts 
Likewise, President Clinton and his administration are also pressed 
for time because they want clear cut commitments from Islamabad on 
CTBT and other non-proliferation matters at the earliest, as the 
president has to decide whether he would travel to South Asia or 
More importantly, unless Islamabad was willing to sign these 
critical treaties, the all-important nod to the IMF may not be 
given to release funds which may ultimately push the government out 
of the present economic quagmire.
Pakistani officials are tight-lipped about what was going on 
between Strobe Talbott and Shamshad Ahmed but one indication came 
from Ambassador Riaz Khokhar on Tuesday when he told Dawn on 
telephone: "You guys do not know at all what is going on. You have 
no clue. You are all off the mark widely."
These comments made on telephone were in response to reports in 
Washington Post and later in Dawn in which a Pakistani diplomat was 
quoted as saying that the "streets in Pakistan were under the 
control of the extremists"and President Clinton would not visit 
Pakistan even if Islamabad signed the CTBT.
Asked whether President Clinton was going to call the Indian prime 
minister as well, since he called the Pakistani prime minister, 
McCurry said: "If he does, we�ll let you know."
Q: Is this an effort to let them know what needs to happen for the 
trip to go forward in November?
A: I think it�s more importantly to address the regional security 
issues that are fundamentally important in the relationship, the 

economic issues that are important globally that we�ve been 
discussing, and to talk about the agenda. And, sure, meetings are 
important, but the importance of getting right those things that we 
need to do to protect the security of citizens throughout South 
Asia and to work on the economic problems that are fundamentally 
important as well  that�s the purpose of meetings, phone calls, 
discussions across the board.

No alliance possible with PPP or PML, says Farooq
KARACHI, Sept 9: The Leader of the Muttahida Qaumi Movement in the 
Sindh assembly, Dr Farooq Sattar, on Wednesday ruled out the 
possibility of an alliance either with the Pakistan People�s Party 
or the former coalition partner Pakistan Muslim League.
Talking to newsmen after the assembly session, he said the cautious 
approach of his party on the opposition benches should not be 
equated with covert understanding with the government.
"As the events unfold and situation becomes clear, we will play our 
effective role in the assembly," said Dr Sattar.
Replying to a question, he said the MQM would treat every issue on 
merit and formulate its response accordingly. 
He said the MQM as an independent opposition and the PPP would make 
the government aware of the prevailing realities.
Dr Sattar said the MQM had not yet taken any decision about moving 
a no-trust motion against the Sindh government.
"If the PPP brings a no confidence motion against the chief 
minister, we will decide our strategy only then,"he said pointing 
out that despite quitting the coalition government, the MQM�s 
policy was to play the role of an effective and forceful opposition 
to ensure the continuity of the democratic process and existence of 
the political system.
He told a questioner that the MQM had kept its options open, adding 
that his party desired to hold talks with all its former
coalition partners, excluding the PML, for improving relations with 
Replying to a question, Dr Farooq Sattar said that to prevent a 
breakup of the assembly, the MQM would not bring up any issue which 
might call for division of votes to expose the minority government.
Dr Sattar said his party would strive for the solution of problems 
of the people and particularly of urban constituencies.
Rare coins disappear from city museum
H. A. Hamied
KARACHI, Sept 7: Nearly 156 gold, silver and copper coins are 
missing in the National Museum of Pakistan�s (NMP) numismatic 
section and there has been no trace of them for more than four 
Among the missing coins are: 16 gold, 40 silver and 100 copper.
The missing coins of various periods were from the reserve 
collection of about 100,000 coins that the museum possessed and 
this came to the notice of the authorities, when stock-taking was 
carried out some four years ago when the date of retirement of the 
superintendent of the National Museum, Mrs Parvin T. Nasir, was 
The missing coins have had impact on Mrs Nasir, who retired after 
more than 30 years of service in February this year.
The ministry of culture has withheld her pension and other dues 
amounting to about Rs900,000.
According to Mrs Nasir, she had physically handed over the entire 
collection to Ms Naheed Zehra, an assistant curator, some four 
years ago and the process of scrutiny continued until Mrs Nasir 
actually retired from service after attaining the age of 
Mrs Nasir said that while she was still in service she offered full 
assistance to Ms Zehra for checking and cross-checking the 
collection. She says she is still ready to cooperate in continuing 
with the process. It could have been better if physical checking 
and re-checking was completed to the full satisfaction by the time 
she was retired so that her dues were not withheld.
Ms Zehra is the assistant curator in the museum. Mrs Nasir was the 
superintendent in higher grade.
Mrs Nasir, who served the NMP�s numismatic section, which is a 
treasure house of finest collection, says that no pilferage or 
dishonesty on her part can be attributed.
It is only a case of misplacement of the coins, because they were 
kept at several places since there was no arrangement for display 
of the entire collection. They could be traced any time if proper 
arrangement was made for that, she maintained.
Dr. S. M. Ashfaque, the director of National Museum of Pakistan, 
said that the assistant curator had prepared a list of gold, silver 
and copper coins which showed that about 160 coins were missing and 
Mrs Nasir admitted the situation and it had been handed over to the 
director-general (DG), Saeedur Rahman, after the retirement of 
acting DG Niaz Rasool last month, before making him the permanent 
The director of the museum has recommended to the director-general 
to either to write off the matter or to conduct a thorough inquiry 
or collect the value of the coins in cash on the basis of the 
purchase price from the outgoing in charge of the numismatic 
He has also suggested that Mrs Nasir may be asked to make good the 
loss of the coins by replacing them. She may buy the replacement 
from local antique dealers.
The system of reserve collection of the coins is in such hopeless 
condition that they are bundled up in sacks and boxes, and dumped 
in one corner and no scientific methods have ever been applied or 
catalogues prepared and numbered for immediate examination. There 
is no system as to which types of coins are kept where.
Theft of these coins by outsiders is ruled out because there was no 
evidence of tampering, although, however, in the past there have 
been cases of organized thefts at night when the museum�s safety 
was handed over to the police, after the closing time.
Coins and rare objects have been stolen in the past when the 
museum�s security was handed over to the police and some rare 
objects, other than coins, were later found in possession of some 
people leaving the country from Islamabad, which showed that there 
were some organized thefts. Who were involved in these has never 
been explained.
The customs at Islamabad seized the antiques, but they were not 
taken back by the department of archaeology, as provided under the 
law. The seizing agency, under the law, had to return the objects 
to the department of archaeology. But there was no seriousness on 
the part of the directorate- general to follow the cases and get 
back the objects.
The Quiad�s diary has not yet been recovered and investigations are 
continuing. The ministry of culture has not taken any action 
against any official for such a serious lapse.

Petition seeks census after every 10 years
KARACHI, Sept 9: The census and election authorities have submitted 
in the Sindh High Court that there is no constitutional or legal 
binding in the constitution to undertake census at a particular 
point of time.
They stated this in their comments on a petition filed in the court 
by two citizens seeking court directives about compulsory holding 
of population and housing census regularly after every 10 years.
The comments were filed by the deputy attorney general, M. Naimur 
Rahman, on behalf of the chief census commissioner, chief election 
commissioner and provincial election commissioner.
The chief census commissioner agreed that the census data is used 
not only for allocation of seats but also for socio-economic 
"The population and its composition is a changing phenomenon which 
can only be determined when the census is held,"he said, but 
maintained that "there is no constitutional or legal binding either 
under Article 51(3) to undertake census at a particular point of 
time or under the Census Ordinance, 1959".
The chief election commissioner and provincial election 
commissioner further submitted that the requisite census had since 
been held, and if required, the delimitation of constituencies 
would take place after the census results were officially 
The petition filed by Rizwan Haider and Mustafa Hussain, both 
lawyers, came up for hearing on Wednesday before a division bench 
of the Sindh High Court, comprising chief justice Kamal Mansur Alam 
and Justice M. Roshan Essani.
The petitioners through their counsel, K. M. Nadeem, submitted that 
Pakistan is a federal republic, governed by a constitution, which 
has guaranteed that the state would ensure democratic and 
representative character of the federation by allocating seats to 
respective four provinces and FATA on the basis of last preceding 
officially published census.
The federation of Pakistan, the chief election commissioner, chief 
census commissioner and the government of Sindh and provincial 
election commissioner have been made parties in the petition.
The petitioners said the respective governments have failed to hold 
census since 1981 and the allocation of seats in the assemblies 
continues to be the same as it was in 1981, thereby seriously 
impairing the representative character of the federation.
Abbasi in NY to get loans for new PIA planes
Bureau Report
NEW YORK, Sept 6: The Chairman of the Pakistan International 
Airlines, Shahid Khaqan Abbasi, met several officials of financial 
institutions in New York to negotiate loans for at least four new 
aircraft for the airlines in an effort to upgrade the aging fleet.
Abbasi, who left New York on Sunday morning by a PIA flight which 
was delayed by eight hours "due to technical reasons", told Dawn, 
"we have to start replacing the aging fleet of aircraft with the 
new ones."
He said some of the planes in the PIA fleet were 22-year-old. He 
said Boeing 707 aircraft, used as freighters, had outlived their 
airworthiness and were currently grounded.
He said the PIA was negotiating with Boeing and Airbus 
manufacturers and a decision to acquire new planes would be made as 
soon as financial aspects were sorted out.
He emphasised that airline�s fleet had to be upgraded to remain in 
the competition with other airlines and to improve PIA operations. 
Besides meetings with financial institutions, Abbasi also discussed 
the PIA�s Roosevelt Hotel acquisition by its Investment company.
PIA Investments had already paid $2.5 million to Millistein 
Properties as a first step to get property rights of the hotel 
completely. In March 1999, according to lease agreement, PIA 
Investments would pay another $34 million to Millistein Properties 
to own the hotel completely.
The coveted and newly-renovated Roosevelt Hotel, which is now 
operating at a 90 per cent occupancy rate since its reopening in 
April 1997, is estimated to be worth around $500 million.

Seafood export to EU resumes on Oct 1
Shadaba Islam
BRUSSELS, Sept 10: Pakistan will be able to resume exports of its 
fish and seafood products to the European Union as of October 1, 
following a provisional clearance to the imports given by the 
European Commission�s health and veterinary experts.
Pakistan�s exports were suspended on July 1 after Islamabad failed 
to supply the commission with details of its efforts to improve 
health and sanitary conditions in the fishing industry.
An EU inspection team which visited the Karachi port in December 
1997 had issued warnings about the unsatisfactory standards in 
force in the local industry.
The European Commission officials say that Pakistan had now given a 
"satisfactory"report which provided information on the different 
ways in which the health and safety norms in the sector had been 
upgraded. But an EU inspection team will visit the country to give 
its final verdict on the situation. Also, the exports have been 
liberalized from a limited number of plants.
"What we have at the moment is a provisional clearance,"a 
Pakistani trade official said. "The Commission still has question 
marks about some things which need to be clarified through another 
on-the-spot inspection."
EU officials stress that if Pakistan wanted to keep exporting its 
fishery products to Europe, it would have to make adequate 
arrangements to improve its health and safety standards in the 
"There can be no compromise when it comes to consumer health,"one 
official commented.
Imports of fishery products from India and Bangladesh have also 
been liberalized following inspection of their facilities earlier 
this year.

IMF mission begins talks with govt
Staff Reporter

ISLAMABAD, Sept 11: The advance team of International Monetary Fund 
comprising five senior members arrived here on Friday and soon 
thereafter, were closeted with the government officials for talks 
on future loan requirements for Pakistan.
The talks would be divided into two phases. In the first phase 
which began on Friday, the IMF officials would be obtaining data 
about the functioning of various branches of the government of 
Pakistan in the context of structural adjustment and implementation 
of the reforms included in the stalled ESAF/EFF programme. Only two 
tranches of this $1.6 billion aid package have been delivered.
The second phase of talks will start when the head of the mission, 
Antonio Furtado arrives here on September 16 with some more experts 
for substantive talks on the basis of information made available to 
the team till then and a possible agreement. This will be his 
second visit to Islamabad in about three months. He earlier came 
here in June to assess the government�s progress in implementing 
the ESAF/EFF programme and laid the ground for the release of third 
tranche, which however, did not materialise.
Hasan Mansoor, IMF Representative in Islamabad, was asked by Dawn 
whether the forthcoming talks would be only for the reactivation of 
the ESAF/EFF aid package. "This is definitely a possibility,"he 
replied. But then he went on to affirm that the talks might go 
beyond reactivation and cover arrangements for longer term aid 
programme for Pakistan from IMF.
In fact, Dr Hafiz A. Pasha, the Prime Minister�s Advisor on Finance 
& Economic Affairs has also shown his interest in working out an 
entirely new long term aid package, keeping in view the serious 
balance of payments problems characterised by debt servicing and 
imports financing faced by Pakistan which took him to Saudi Arabia 
for a $1.5 billion loan package from Islamic Development Bank, 
earlier this week.
The officials were hopeful that the talks would result in some 
agreement that would help resolve at least partially the resource 
gap of about $4.5 billion. One of the planks of this optimism is 
their claim that Pakistan had already fulfilled all the 
conditionalities of IMF.
How the forthcoming negotiations with IMF fare would, nevertheless, 
hinge very largely on the extent to which Pakistan can satisfy the 
other side about its failure to impose general sales tax and 
agricultural income tax, recover scores of billions of rupees in 
bad bank loans and reduce current expenditure of the government. 
The mission would also like to be briefed about the progress in 
implementation of banking reforms.
CBR recomputing IT exemption losses in state units
Ikram Hoti
ISLAMABAD, Sept 7: The Central Board of Revenue is recomputing the 
losses incurred in terms of exemptions allowed in the income tax 
payment by the state sector industries over a period of two to 
three past years.
This computation has been necessitated by a query from the federal 
government regarding the depleting factors in the collection of 
income tax revenue per month in the financial year 98-99, even 
after the introduction of methods that aim at minimizing the 
evasion and leakages.
Sources said the most noticeable factor in tax revenue loss remains 
to be the exemptions allowed to the state-sector enterprises. These 
enterprises, says a report, have been unable to recuperate from the 
profit-eroding factors even after availing themselves of 
moratoriums over the heftiest amounts of repayments due against 
accumulated amounts of money borrowed since long.
"Now it has come to light that these enterprises, having gobbled up 
loans close to Rs2 billion, have also taken no advantage of the 
customs duty, sales tax, central excise duty and income tax 
exemptions at varied stages and points of time", said a senior 
He added, the Water and Power Development Authority has already 
been allowed a moratorium over Rs700 million worth of debt 
repayment, while a total exemption from all duties has been allowed 
to Wapda.
Other state-sector organizations - 73 in number running under six 
main corporation supervised by the ministry of industry and 
production - have been successfully seeking moratorium on loan 
repayment and exemptions from payment of duty/taxes since 1995. 
However, now the amounts of exemption are becoming heftier and more 
alarming in terms of revenue loss to the CBR, hence an erosion on 
the collection of all taxes.
The federal government has now demanded of the CBR to explain as to 
how much loss in the income tax exemptions has been incurred, to 
determine as to what amount of loss-rationalization could be 
justified, in the follow-up of a CBR complaint that further 
continuation of these exemptions would be causing unsustainable 

Withdrawal from FCAs: Govt fails to furnish list of depositors
LAHORE, Sept 10: The federal government on Thursday failed to 
furnish a list of depositors who allegedly withdrew their foreign 
currency amounts on the eve of accounts freeze on May 29 as a full 
bench of the Lahore High Court adjourned the hearing of the FCAs 
case till Sept 21.
Advocate Mansoor Ali Shah, a petitioner�s counsel, informed the 
bench, which comprises Justice Ihsanul Haq Chaudhry, Justice Amir 
Alam Khan and Justice Karamat Nazir Bhandari, of the lawyers� 
strike on Thursday as it assembled to hear more arguments on behalf 
of petitioners and appellants. 
There could be no hearing on Friday either as it had already been 
declared a court holiday on account of the Quaid-i-Azam�s death 
anniversary. Saturday being a judgment day, the hearing could 
resume only on Sept 14.
State Bank counsel Abid Hasan Minto said he would be out of the 
country from Sept 14 to 19 while the senior member of the bench 
would also be holding court at Multan next week. The Sindh High 
Court has scheduled hearing of identical petitions from Sept 22 and 
there, too, he would represent the State Bank.
One reason he wanted early hearing, Mr Minto said, was that the 
Foreign Exchange (temporary) Restrictions Ordinance, which was 
promulgated on May 28, is due to expire on Sept 28. The ordinance 
provides legal cover to the accounts freeze order and all 
subsequent actions in respect of the FCAs. When petitioners� 
counsel said ordinances could no longer be promulgated under a 
Supreme Court decision, Mr Minto expressed the opinion that the 
ordinance would first be tabled in a house of parliament and then 
repromulgated for the intervening period.
Phone going beyond common man�s reach
Nafisa Hoodbhoy
KARACHI, Sept 5: The multi-metering of telephone calls, charging 
about Rs2 after every after five minutes, has hit the middle 
income, salaried class and individual subscribers the hardest.
On the contrary, the new system aims at subsidizing the corporate 
sector and the business companies which make over Rs2,000 worth of 
calls every month.
Inquiries show that ordinary subscribers, already groaning under 
the growing cost of living and spiralling inflation, have suffered 
an average increase of Rs300 in their July telephone bills (which 
were earlier less than Rs500), on account of a new call being 
charged after every five minutes.
Ironically, the Pakistan Telecommunication Company (PTCL)�s 
introduction of the package of unlimited telephone calls of Rs2,000 
per month, ushered in with multi-metering, has given the biggest 
break to business companies whose telephone bill per number used to 
be over Rs2,000 per month.
For example, the scrutiny of the telephone calls made in one major 
business company, which logged an average of over 1,600 telephone 
calls on each one of its 26 telephone numbers, showed that the 
company had to pay over Rs3,000 per number in June  before multi-
metering went into effect.
With the multi-metering becoming effective from July 1, the 
telephone bills received by the company logged over 1,800 telephone 
calls per number  since a new telephone call was being charged 
after every five minutes. Since, with taxes, this would have cost 
the company about Rs4,000 per number, the company has applied for 
the PTCL�s package deal of unlimited phone calls for Rs2,000 per 
Continental AG to buy 40pc share in GTR Pakistan
KARACHI, Sept 8: Tyre producer Continental AG of Germany has signed 
a letter of understanding with Bibojee Services to purchase its 40 
per cent share in the General Tyre and Rubber Industry in Pakistan.
The German company is also in touch with other shareholders in GTR 
 the Pak Kuwait Investment Company (PKIC) and National Investment 
Trust (NIT) to increase its shareholding to 51 per cent.
The Continental AG has already acquired 10 per cent share of 
General Tyre USA in 1987 and by virtue of that the AG also became 
shareholder in GTR Pakistan.
The official said, Continental plans to increase the tyre 
production of GTR Pakistan to 2.5 million tyre per annum from the 
present capacity of 750,000 tyres for meeting local demand as well 
as to realise the export potential in the region.
He said that the production has dropped to 650,000 tyres per annum 
owing to low off-take by the entire auto industry, particularly 
heavy vehicle sector and depressed economic conditions. The GTR 
pays a revenue of Rs450-500 million per annum, the official added.
GTR Pakistan was established in 1963 with 60 per cent holding and 
management control by US parent company. In 1977, the GTR USA 
reduced its shareholding to 10 per cent.

Capital restrictions $60 million investment being liquidated

KARACHI, Sept 7: Pakistan stands to lose about 60 million dollars 
portfolio investment as soon as mutual funds get permission to 
remit their money outside Pakistan, bankers and market participants 
Foreign bankers, performing custodial banking for these funds, 
informed Dawn that, at present, applications for around 55-60 
million dollars� were pending with SBP to remit their money out of 
the country.
Portfolio investment in Pakistan bourses can only take place 
through Foreign currency rupee convertible account (FCRA) where 
these funds are queuing 
up in rupees to get matching dollars from the State Bank of 
The State Bank on July 9 had made it mandatory for banks to seek 
its permission before remitting money from FCRA. But bankers say 
they are yet not allowed to remit this portfolio investment.
�At least three funds are expected to completely liquidate their 
investment in light of capital restriction imposed by the country,� 
market sources said.
Those who may liquidate their portfolio include two Credit Lyonnais 
funds and one Jardine Fleming fund. Currently there are seven 
foreign funds which are operating in the country.
Sources said some custodian banks had sought permission from SBP to 
buy dollars from open market in order to repatriate funds� money 
outside Pakistan. Pakistani market share in the global portfolio 
investment is only 0.1 per cent and outflow of these funds would 
not make any big difference for the market.
Market analysts say, in order to minimise their losses, some 
portfolio investors are re-deploying their money in the market.
�Now these funds are re-investing their money from FCRA in blue-
chips and that is the reason that market is operating in a tight 
band for the last 3-4 weeks�, Nadeem Naqvi, head of research at 
IAMC said.
Nadeem, whose company is an advisor to Morgan Stanley Pakistan�s 
fund, says that Pakistan dedicated funds, who are 35-40 per cent of 
the total investment, would not pull out of Pakistan.
There is still estimated $300 to 400 million foreign portfolio 
funds in Pakistan. 
The Karachi Stock Exchange�s market capitalization have dropped 
down to Rs 317 billion from Rs 549 billion since Pakistan conducted 
its nuclear tests on May 28.

Sales tax collection up Rs1.6bn in July-Aug
Ikram Hoti
ISLAMABAD, Sept 8: The Central Board of Revenue has recorded an 
improvement of Rs 1.6 billion in collection of sales tax in July-
August 98, as compared to what was collected in the same period 
last year (1997).
The CBR is still short of the target in two months collection by Rs 
5 billion. The total amount of sales tax collected in July-August 
1997 (first two months of the financial year) was Rs 7.064 billion. 
This year in the first two months of the financial year 98-99, the 
CBR collected under the head of sales tax a sum of Rs 8.729billion.
This year, however, the most pressing demand against the Sales Tax 
department has been the clearance of the backlog on ST refund due 
in May-June 98, and with the payment of this amount, the domestic 
stage ST concluded with a balance of net collection minus Rs 269 
million, after having made the payment of a huge sums to the refund 
The domestic stage ST collected in July 1997 was Rs 1.659 billion 
while in July 98 it was Rs 1.432 billion, Rs 227 million less this 
year. The domestic ST collected in August 1997 was Rs 1.329 
billion, while in August 98 it was Rs 1.163 billion, Rs 166 million 
less this year.
The total domestic stage ST collected in July-August 1997-98 was Rs 
2.988 billion, while this year in the first two months, the total 
amount collected was Rs 2.595 billion, less this year by Rs 393 
The import stage ST collected in July 1997 was Rs 2.012 billion, 
while this year in July it was Rs 3.151 billion, this year up by Rs 
1.139 billion. The import stage ST collected in August 1997 was Rs 
2.054 billion, while in August 98 it was Rs 2.983 billion, this 
year up by Rs 829 million.
The total Import stage ST collected in July-August in the financial 
year 1997-98 was Rs 4.064 billion, while this year it was Rs 6.134 
billion, this year up by Rs 2.070 billion. This improvement came to 
cover the Rs 393 million shortfall incurred this year against last 
year, and the total improvement stood at Rs 1.665 billion in the 
collection of sales tax.
The CBR officials said the domestic side ST has gone down this year 
due to less payment of tax by the small and medium corporate sector 
assessees. They added that though the CBR has been charting out a 
number of methods for extracting the tax due in these sectors, 
there has not been enough of success, to meet the shortfall 
occurring in both July and August this year in domestic ST as 
against the previous financial year.
With the total ST having been collected at Rs 8.729 billion this 
year, the CBR still faces a gap of more than Rs 5 billion as 
against the target set for the ST collection in the first two 
months. The CBR field staff was supposed to collect Rs 7 billion a 
month, (Rs 14 billion in July-August), while at the present rate of 
collection, it has collected only Rs 4.35 billion a month, 
recording a monthly shortfall of Rs 2.65 billion.

US firm to invest $3.55 million in oil, gas sector
S. Azam Ali
QUETTA, Sept 9: According to a geological survey, there are bright 
prospects for oil and gas in an area of more than 828 sq.kms in 
Balochistan and Punjab, where an American firm intends to invest of 
more than 3.55 million dollars.
OGDC sources confirmed here on Wednesday that the areas, where 
drilling for two exploration wells would be initiated by Union 
Texas and Govt Holdings, within three years� time, would be spread 
well over Balochistan and the Punjab.
In Balochistan possible sites for exploration would be Kalat, areas 
of Khuzdar, Kharan and Chagai. In Punjab, oil and gas exploration 
would be undertaken in DG Khan.
These sources added that apart from Balochistan and Punjab, another 
joint ventureUnion Texas, Occidental Petroleum, Oil and Gas 
Development and Govt Holdingswould make another investment of 
about 2.3 million US dollars over an area of 5,000 sq.kms in three 
years� time in the districts of Badin, Hyderabad and Thatta of 
Preliminaries for both these new ventures have been completed to 
explore more oil and gas for Pakistan. Four per cent oil and gas 
discoveries made in Pakistan in the previous year added about five 
trillion cubic ft to the gas reserves.

Forex rates within fixed band for kerb trading
KARACHI, Sept 10: The State Bank on Thursday extended up to 
September 30 the deadline set for illegal money changers to get 
The SBP also issued a set of rules to be observed by such money 
changers. One of the rule says these money changers  700/ 800 in 
number  would quote their daily exchange rates within the band 
fixed by the Forex Association of Pakistan. Another rule says the 
SBP would have the right to examine their books and records at any 
The chairman of the association, Malik Bostan said licensed money 
changers would also be bound to follow the exchange rate band. He 
told Dawn that the rate band would be decided at the end of every 
day for the next day.
Earlier, the SBP had set July 31 as the deadline for illegal money 
changers to get licensed which lapsed almost unheeded without any 
action taken against them.
A SBP circular (FE 46) said authorized money changers having more 
than one branch would pay Rs 300,000 as fee for issuance of fresh 
license and Rs 50,000 more for other branches. It said they would 
pay Rs 50,000 for renewal of license for main office and Rs 10,000 
for other branches.
The circular said authorized money changers having a single office 
would pay Rs 50,000 for the issuance of fresh license and Rs 10,000 
for its renewal.
The circular said if the authorized money changer having a single 
office opens an additional branch he would pay the differential of 
Rs 300,000 and Rs 50,000 for the main office at the time of 
obtaining the licenses for additional branches in addition to Rs 
50,000 fee per additional branch. The application for issuance of 
fresh license would be made to the area office of the State Bank 
through a bank.
The circular said the following documents would have to be 
submitted along with the application:
(i) evidence that the paid up capital of the applicant is not less 
than Rs 1.0 million as per audited accounts of the company and in 
case of individual/partnership firm the net worth is not less than 
Rs 500,000 as per the wealth statement filed with the Income Tax 
(ii) evidence that the applicant is a Pakistani national or 
resident Pakistani firm/company who are paying the income tax.
(iii) evidence that the applicant has procured independent office 
measuring not less than 10x10 feet in size for carrying on the 
money exchange business and an undertaking that no other business 
activities of whatsoever nature will be conducted in the said 
premises. This requirement, however, will not be applicable on 
hotels and curio shops. The State Bank will have the right to 
declare any premises unsuitable for working as money changer�s 
office, if it is not located in a suitable place.
(iv) the report from the police authority that the applicant is not 
involved in any illegal activity.
The circular said the money changers who have not yet obtained the 
licenses from the State Bankillegal money changerswould abide by 
the following terms and conditions:
(a) they will restrict their activities to purchase of foreign 
currency notes, coins and foreign currency travellers cheques 
issued outside Pakistan and sale of foreign currency notes and 
coins only from a fixed premises with space measuring not less than 
10x10 feet in size.
(b) they will not include (in their business titles) any word such 
as bank, financial institution, investment company, trading 
company, real estate company or any word inactive other than money 
changing business.

(c) they will not undertake banking business e.g. accepting of 
deposits, advancing of loans, issuance of letters of credit, 
discounting of bills of exchange, purchase or sale of stocks or 
securities, release of foreign exchange for any purpose, purchase 
and sale of gold, silver or precious metals in any form or any 
other banking activities. "All purchases and sales by the 
unlicensed money changers should be started by receipts/vouchers. A 
notice advising the customers of the necessity of obtaining 
receipts for all purchases of foreign currency notes/coins and 
travellers cheques or sale of foreign currency notes and coins 
shall be prominently displayed by them."
(d) purchases and sales by them will be undertaken at rates within 
the band to be announced daily by the Forex Association of 
(e) They will make their own arrangement to procure the stock of 
various currency notes and coins for meeting their daily 
requirement as also to dispose of their surplus holdings. They will 
also ensure that the foreign currency notes handled by them are 
genuine. They will not be entitled to make any purchase of foreign 
currency notes or coins from any bank against payment in rupees. 
They will, upon the State Bank directive, provide all books of 
account and other record relating to their business at any time and 
for any particular period.
The circular said unlicensed money changers would send to SBP 
Director Foreign Exchange a daily report of their transactions in a 
prescribed form. It said strict action would be taken against those 
who do not comply with the above terms and conditions.

KSE index gains 25.51 points on strong buying

KARACHI, Sept 11: The KSE 100-share index posted a fresh rise of 
2.44%, making the total for the week to about 8%, as news of IDB 
economic bailout package continues to inspire strong buying from 
all and sundry at the lower levels.
The fresh increase, which added over Rs 6 billion to the market 
capitalization at Rs 305 billion, highest for the last three 
months, reflects that investors are out to cover losses after 
making massive buying at least in the pivotals, analysts said. The 
last figure of Rs 303 billion was recorded in May.
"The index is progressively edging to test the respectable figure 
of 1,200 points not in the very distant future and if all goes well 
with the visiting IMF delegation the target of 1,500 points might 
not be too ambitious,"they added.
The KSE 100-share index showed a fresh sharp rise of 25.51 points 
at 1,070.33 as compared to 1,044.82 a day earlier as all the 
leading base shares finished with fresh smart gains under the lead 
of Hub-Power and PTCL.
Analysts said unlike previous sessions, Friday�s rally was broad-
based and reflects a major change in the investor perceptions about 
the market�s future behaviour.

"The market is surging ahead, of course, after consolidating 
initial gains and any rally built-up on strong fundamentals could 
be sustained for a longer period,"they added.
The package of $1.5 billion arranged by the Islamic Development 
Bank-led Gulf financial consortium could well provide the much-
needed launching pad to the ailing market and indications are that 
investors have already found the cue for things to come.
"If the visiting IMF delegation could offer another bailout package 
after having nod for its new conditionalities, no one could stop 
the bull-run,"said a leading floor broker.
Shell Pakistan and Lever Brothers led the list of leading gainers, 
rising by Rs 8.00 and Rs 30.00, followed by Alico, Engro Chemical, 
PSO and Bank of Punjab, which also rose by Rs 2.75 to Rs 5.50.
Other good gainers were led by MCB, Blessed Textiles, Crescent 
Textiles, National Refinery, Philips, Cherat Paper, Fauji 
Fertilizer and some others, which showed gains ranging from one 
rupee to Rs 2.00.
Barring sharp decline in Bank Al-Habib and Dadabhoy Insurance for 
no apparent bearish reasons excepting selling for replacement 
buying, losses were mostly fractional and reflected lack of support 
rather than large selling.
Trading volume fell to 108 million shares from the previous 146 
million shares owing to a short Friday session, while gainers 
maintained a strong lead over the losers at 76 to 21, with 28 
shares holding on to the last levels.
Hub-Power was again massively traded on news of some settlement 
over the power tariff cut issue, up 85 paisa at Rs 15.10 on 69 
million shares, followed by PTCL, higher 20 paisa at Rs 26.65 on 29 
million shares, ICI Pakistan, firm 45 paisa at Rs 12.40 on 3.397 
million shares, FFC-Jordan Fertilizer, up 70 paisa at Rs 14.10 on 
1.697 million shares, and PSO, higher Rs 5.50 at Rs 91.80 on 0.690 
million shares.
They were followed by Fauji Fertilizer, up one rupee on 0.546 
million shares, KESC, up 80 paisa on 0.512 million shares, Bank of 
Punjab, higher Rs 2.50 on 0.411 million shares, MCB, up Rs 1.45 on 
0.297 million shares, Sui Southern, firm 70 paisa on 0.297 million 
shares, and Sui Northern, up 5 paisa on 0.255 million shares. There 
some other notable deals also.
DIVIDEND: Sigma Leasing Corporation, nil on after tax profit of Rs 
13.768 million, Prime Insurance, nil as the company suffered a loss 
of Rs 13.014 million during the financial year ended December 31, 
DEFAULTING COMPANIES: No share came in for trading on this counter 
owing partly to a short Friday session and partly to bullish 
conditions prevailing in the ready section and investors were busy 
covering their positions in pivotals at the lower levels.

Back to the top
Not the business of the state	     
Ardeshir Cowasjee

ISLAM is a great and good religion, as are the other major faiths 
of the world, when interpreted and put into practice by true men of 
God  learned, balanced, fair-minded, sensible, compassionate and 
I am a Zarathushti, a follower of the prophet Zarathushtra. I am 
not a Parsi by religion, but by race. The origin of the word 
�Parsi� goes back 1,368 years when a group of Zarathushtis from the 
province of Pars in Iran arrived to settle on the west coast of 
Hindustan, then ruled by the benign king, Jadav Rana. It was the 
Hindustanis who bestowed upon the community the name �Parsis�  the 
men from Pars.
Zarathushtra taught his followers that life was a gift of God to be 
lived to the full, and that they should do unto others as others 
and they would be done by. He taught them that religion is a matter 
that rests entirely between man and his God, that intolerance, 
bigotry and dogmatism are the bitterest enemies of religion as they 
render it a tyranny and a form of persecution. Bigotry stifles 
reason, is blind and savage, sectarian bigotry and inter-religious 
bigotry being equally evil.
Man has no right to demand that his neighbour shall address his God 
as does he, nor that he shall pray, worship, and sacrifice to God 
in the manner that he does. No thinking man�s idea of God and 
religion can ever be the same at all times and in all places on 
earth. True men of religion know that they have no right to impose 
their way of thinking upon others, that they must remain free from 
the spirit of sectarianism and fanatic zeal. Zarathushtra�s 
teachings, as do the teachings of all the great prophets, define 
cleanly and clearly the difference between religion and 
The Parsis living in the four provinces of Pakistan inherited this 
country. They chose to remain in Jinnah�s Pakistan, and with relief 
and happiness accepted his creed as proclaimed on August 11, 1947, 
in the Constituent Assembly. He was clear and concise when he told 
the members that all men are equal, that religion is not the 
business of the state. Jinnah�s Pakistan died with him.  
Zarathushti blood was not shed in the making of Pakistan, though 
Zarathushti support was given unstintingly.
Now to Nawaz Sharif. To gain the two-thirds majority necessary for 
the smooth passage of the Fifteenth Amendment through the National 
Assembly and (particularly) the Senate, he will have to buy men. He 
has done it before, and will do it again. The process has already 
started. This week, Chaudhry Shujaat was sent off to Balochistan. 
Closely followed by trusted briefcase carrier, Saifur Rahman, to 
meet my friend Nawab Mohammad Akbar Shahbaz Khan, Tumandar of all 
the Bugtis, who owns and controls five vital Senate votes.
The Nawab has his own perception of Islam, as is his right, which 
may not necessarily tally with the concept as followed in Raiwind. 
Towards the end of last year, inspired by the incompetence of Nawaz 
Sharif�s government, I had a bet with him that Nawaz Sharif would 
not survive as PM beyond July 31. I lost. When I asked Akbar where 
I should send my cheque, he told me he did not want it. Being a 
good Muslim, he cannot accept a Kafir�s money. One must wonder if, 
had he lost the bet, would he have held, as a good Muslim, that he 
cannot pay a Kafir?
The day before yesterday, I read in Dawn that the Nawab had 
acknowledged that he has received a cheque from a Kafir, but since 
Islam prohibits a Muslim to use money won on a bet he must pass it 
on. He has done so, to the Quetta Press Club. This is typical, and 
enjoyable, Akbar Bugti logic. His Islam did not prohibit him from 
making a bet with a Kafir, only from accepting a Kafir�s money. He 
has his own views on Zardosht as he calls him, and why not? He must 
have had fun with Saifur Rahman (I would have loved to have been 
with them at their meeting).
Nawaz Sharif sits within three cabinets. Firstly, in the Raiwind 
cabinet, headed by Abbaji who is advised by his cardiologist Dr 
Shahryar, Judge Afzal Lone, Son Shahbaz, and Child Prodigy Hussain. 
Second is the kitchen cabinet he himself heads, made up of his 
Mians and Chaudhrys (�Lahore Lahore hai�). The third, in order of 
importance, is the official cabinet at Islamabad.
Crisis or no crisis, the third cabinet probably meets formally 
twice or so in a hundred days. It can broadly be divided into three 
One comprises the gung-ho table-thumpers, who hang on Nawaz 
Sharif�s every utterance, echoing each one with a �Wah-wah, Mian 
Sahib� before he has even completed his sentence, pride of 
performance going to �Mushahidsaab�.
Then there is the group made up of the sour-faced, grim and silent 
lot, whose lips remain sealed unless they are specifically urged to 
speak up on their own specific subjects. To this second group 
belongs Khalid Anwer, an intelligent man who has proved to be a 
bitter disappointment. He cannot match his predecessor in office, 
law champion of all governments, Jadoogar Syed Sharifuddin Pirzada, 
who at least is honest enough to laugh and say. �Accept me as I am, 
with warts, blemishes, briefcases and all. If it were not for all 
the weak and corrupt governments of Pakistan, I would not be where 
I am today.� Sharifuddin never places himself on a pedestal, seldom 
looks down on a lesser mortal, Khalid Anwar would do well to re-
read paragraph 301 of his written statement, filed in the Supreme 
Court in response to Benazir Bhutto�s petition against her 1996 
"The doctrine of collective responsibility has different facets and 
aspects. At its most basic, the doctrine means that the ministers 
are collectively, and as a body, known as the cabinet, responsible 
to the National Assembly. Individual ministers do not have the 
choice or luxury of agreeing only with some government decisions 
and not others. However much a minister may disagree with a policy 
or decision taken by the cabinet, he must in public and in 
particular before the National Assembly give it his full and 
unstinting support. If he finds it impossible to accept or abide by 
the decision or to support it, he must then resign from office. A 
minister�s choice to remain in the cabinet is tantamount to his 
accepting responsibility for all cabinet decisions and government 
The third cabinet group is headed by those of practical pragmatic 
minds, such as Ghous Ali Shah, whose decisions are based on the 
fear of where they would be should Nawaz Sharif fall.
Dogged by the misfortunes that have beset them since the death of 
Jinnah, the people of Pakistan now face the daunting prospect of 
Nawaz Sharif manipulating his Fifteenth Amendment through 
Parliament and then declaring himself, Amirul Momineen and 
Commander of the Faithful for life. His duties, as he presumably 
sees them, would enable him, inter alia, to:
 Pass an Act whereby a constitutional amendment can go through 
Parliament by a simple majority (at present the Constitution 
provides for a two-thirds majority).
 Declare the Quran and Sunnah to be the constitution and nominate 
a body of �pious� Muslims to interpret it.
 Declare that all state functionaries, including judges, must 
strictly follow government directives whether they consider them to 
be right or wrong.
 Dissolve the provinces as being contrary to the concept of 
 Abolish Parliament, or just the senate, and nominate a Shoora of 
�pious� Muslims.
 Declare opposition to be un-Islamic, hence banned.
 Declare that public offices be restricted to �pious� Muslims.
 Declare restrictions on the rights of women, thus banning them 
from holding public office (bye-bye BB).
 Declare any sect of Muslims to be non-Muslim and thus minorities.
 Declare that minorities have no rights other than the practice of 
their religion, of their personal laws, traditions and customs, 
thus depriving them of their right to vote and other fundamental 
rights. Subject them to payment of Jazya.
 Introduce flogging, amputation, lapidation, the death penalty, 
and public executions for various major and minor offences.
 prohibit western education and declare Islamic education to be 
 Restrict communications with the outside world, such as the 
Taliban -style banning of television.
 Declare interest to be haram and thus not payable on 
international debts.
All this will be done in the name of a good religion as interpreted 
at Raiwind.

The feudal spirit 								
Irfan Husain
AS we approach the end of the millennium, we do so with some 
crushingly heavy baggage. Feudalism is one of the heaviest of the 
many anchors that impede our progress.
During a recent conversation with Farooq Leghari, I asked the chief 
of the newly formed Millat Party what he would do about this system 
if he came to power, considering that he was one of Pakistan�s 
biggest feudals himself. He was of the view that public concern 
about feudalism was misplaced as it was "a dying force"owing to 
the progressive fragmentation of land holdings. He thought what we 
should  worry about was the "feudal spirit", and by this light he 
thought Nawaz Sharif was the biggest feudal of them all.
I pointed out to Mr Leghari that had feudalism genuinely been a 
dying force, the same landlords would not get elected time and 
again: clearly, they had a hold on their tenants that goes beyond 
their personal popularity. The ex-president felt these 
representatives were given tickets by mainstream parties because of 
their ability to win. But then we come back to the question of why 
these people have so much clout in their areas. How else to explain 
it except in terms of the hold feudalism still has in our rural 
While I understand that the Millat Party is for the implementation 
of previous land reforms, the point its leader made about the 
"feudal spirit"is well taken. Curiously, feudals have become role 
models in Pakistan, and this phenomenon is a telling comment on our 
society. While their counterparts in India have faded away with the 
early and effective implementation of land reforms, here they not 
only thrive, but their attitude is imitated in other sections of 
the community.
The fact that large and very expensive off-road vehicles like 
pajeros and land cruisers have become favourites with the city-
dwelling rich is a statement in itself. Although these vehicles may 
never once have been used in their four-wheel drive mode, they are 
nevertheless essential accessories for the wealthy. Heavily 
starched white shalwar kameez and a distinct swagger are   de 
rigueur among the smart young set in Lahore. Mujras are routinely 
organized at weddings.
But these outward manifestations of the feudal spirit are 
relatively harmless; what concerns us here is the spread of 
attitudes and temperament associated with feudalism. I may be 
generalizing a bit, but in my mind the attributes I equate with 
this archaic system are arrogance, an autocratic mindset, a deep-
seated contempt for the poor, and a tendency to flaunt one�s 
If we look around us, we find these same attitudes have become the 
norm among our ruling elites, irrespective of their  class and 
their background. Thus, a middle-class bureaucrat or army officer 
who has made it to the top will try and grab a pajero by using his 
official clout, get an armed guard and display wealth he does not 
legally possess at the weddings of his offspring. And since the 
concept of accountability has broken down, he will feel no shame in 
building an expensive, gaudy house. In addition, he will have an 
air of pompous self-importance in all his social and professional 
Similarly, our industrialists have subconsciously acquired many of 
the airs and manners of our feudals. They, too, flash their wealth, 
usually in vulgar fashion. At work, they tend not to take advice 
from their more professional employees, generally acting as though 
they always know best. They deploy status symbols like armed 
guards, expensive cars and flashy watches, much as our feudals do. 
And because they are confident that they can get bank loans to bail 
them out, they can afford to ignore the bottom line.
Politicians ape these mannerisms irrespective of their resources or 
background. If all these people could afford this lavish lifestyle, 

there would be no need for this column. The problem arises when 
these real and imitation feudals don�t have the means to maintain 
this very  expensive way of life. Since  they are too insecure to 
lower their artificial standard of living when they don�t have the 
means to sustain it, they will beg, borrow and steal to raise the 
funds needed to buy the latest model land cruiser, marry off their 
children in hugely expensive style, and to build the biggest, most 
vulgar "white house"to blight the cityscape.
Much of Pakistan�s 140 billion-rupee bank default can be directly 
ascribed to this phenomenon of warped values. Thousands of 
Pakistanis are living way beyond their means in an effort to 
imitate  what passes for the feudal aristocracy here. But in a 
sense, they are only doing what the nation as a whole has been 
doing for years. Successive governments have consistently behaved 
as though they had unlimited resources, and spent on madcap 
projects as though there were no tomorrow.
Just because Nawaz Sharif saw modern taxis and well-built  roads in 
developed countries, he decided that Pakistan should have some too, 
thereby pushing the country to the brink of fiscal insolvency. 
Taking this a step further, just because India tested nuclear 
devices, it became imperative for us to test too. This form of 
keeping up with the Joneses has bankrupted us so thoroughly that 
there seems no hope of reviving our devastated economy.
If individual bank defaulters are at fault, how is the state any 
better? We are in hock to the tune of hundreds of billions of 
rupees to foreign and domestic creditors and the government cannot 
pay off even a fraction of this mountain of debt. Most of the money 
governments have been borrowing over  the years is to plug the 
growing gap between income and expenditure, and between imports and 
If we compare our public and private attitude towards money and its 
display with that in India, we find a world of difference despite 
our common heritage. Across the border, billionaires who could buy 
any of our industrialists out of their petty cash account show a 
certain restraint in how they spend their money. Many of them give 
large amounts to charity, while the rich in Pakistan tend to spend 
only on themselves.
The Indian bureaucracy and armed forces are far less paid than 
their Pakistani counterparts, and get far fewer perks. The 
government imports far less consumer goods than those that flood 
the markets here. All in all the Indians tend to adopt a far more 
austere lifestyle, and this is reflected in their higher savings 
But we must recognize that this is not a post-partition phenomenon: 
for centuries, Muslim aristocrats in India tended to live way 
beyond their means, aping as they did the Mughals. Hindu 
businessmen were more circumspect, and tended not to flash their 
wealth. This consumption pattern has been maintained despite 
independence and partition; in Pakistan, it has been strengthened 
and spread across the social spectrum.
As a footnote to history, this would have made an interesting 
study. Unfortunately, the present implications of this phenomenon 

are now threatening to destroy us.

Maker of Muslim India�s destiny
Prof. Sharif al Mujahid
IN THE historical perspective, the Muslim League Lucknow session 
(1937) witnessed the culmination of Jinnah�s untiring efforts to 
unite the Muslims on one political platform; it also represented 
the first breakthrough in his attempts to revitalize and reorganize 
the Muslim League as the political spokesman of the Indian 
Lucknow electrified and enthused the Muslim masses as nothing else 
had done before: it also produced immediate results. Within three 
months, some 90 new branches of the Muslim League were set up and 
about 100,000 new members were enrolled in the United Provinces 
alone. Within a week of his return to Lahore, Sir Sikandar Hayat 
Khan, the Punjab premier, wrote to Jinnah:
"...enrolment of the League members is going apace and we hope to 
be able to set up district Leagues throughout the province in a 
short space of time... I have instructed all the Muslim Unionist 
members to start enrolling Muslims in their ilaqas [localities] and 
I am receiving very promising and satisfactory reports from the 
various parts of the province. On the whole, the development at 
Lucknow which brought about the solidarity of the Muslims 
throughout India has been welcomed by the Muslim masses..."
Sikandar�s letter was followed by the setting up of some 40 League 
branches in about two months. Jinnah�s strategy and drive, patience 
and perseverance were at last bearing fruit, and the Muslims were 
getting united as never before.
The spectacular growth of the League under Jinnah�s leadership was 
reflected both in the strength and composition of delegates to the 
annual sessions and in the membership figures in the post-Lucknow 
period. While the 1933 session had to be abandoned for want of 
quorum and the quorum itself had to be lowered from 75 to 50 in 
1931, the League session in April 1936 was attended by 200 
delegates, the figure rising to 2,000 at Lucknow in 1937. The 
seating capacity of the pandal was 5,000 at Lucknow, 15,000 at 
Calcutta (special session, April 1938), and over 60,000 at Lahore 
(1940). Actually, the attendance at Lahore, far in excess of the 
seating capacity, was estimated at over 100,000 and the session 
itself has been described as "one of the most representative 
gatherings of the Musalmans of India."
Likewise, total membership which stood at 1,333 in 1927 showed a 
phenomenal rise. Madras, with a mere 6 per cent Muslim population, 
counted 112,078 members in 1941, while Bengal enrolled 55,000 
members in 1944  the figure exceeding "the number ever scored by 
any organization in the province, not excluding the Congress."For 
the same year (1943-44), Sindh claimed the enrolment of some 
300,000 members  about 25 per cent of the adult male Muslim 
population in the province.

A sure index of the growing strength of the League was provided by 
the by-elections in the post-Lucknow period. Between January 1, 
1938, and September 12, 1942, it won 46 (82%) out of 56 Muslim 
seats, as against three seats (about 5%) won by the Congress and 
seven by independents. Further testimony was provided by the 
enthusiastic response that Jinnah�s call to commemorate December 
22, 1939 as Deliverance Day  deliverance from "tyranny, oppression 
and injustice"of the Congress raj  elicited throughout the 
Even the British, always, a little tardy in recognizing movements 
opposed to their imperial interests, could not for long withhold 
official recognition of the League as the principal spokesman of 
Muslim India. Although precipitated by other factors, the British 
recognition finally came in September 1939, when, on the outbreak 
of World War II, the Viceroy invited Jinnah along with Gandhi for 
In a sense, the Lahore session (1940) and the adoption of the 
"Pakistan"resolution marked watershed in Jinnah�s efforts to unite 
the Muslims on one platform and confirmed his claim to the sole 
leadership of Muslim India.
This claim was further buttressed by his success in securing 
British recognition, though couched in general terms, of the core 
Muslim demand. For the Viceroy�s declaration of August 8, 1940 
secured for Muslims virtually the power of veto over the shape of 
India�s future constitutional framework.
The winning of this crucial assurance, often described as one of 
Jinnah�s greatest triumphs, was later to save the Muslims  and the 
Muslim League  from being bypassed at the first Simla conference 
in July 1945. On the other hand, the disbandment by the Viceroy of 
the conference itself, because Jinnah stoutly refused to stand down 
his claim to nominate all the members in the Muslim quota of seats 
(since the League alone represented the Muslims as a whole), 
amounted to an implied recognition that Jinnah alone was capable of 
delivering the goods on behalf of Muslims  a recognition that was 
to further enhance Jinnah�s prestige, and mobilize the still 
uncommitted Muslim leadership, the Muslim intelligentsia and the 
masses behind him and the League in the crucial pre-election (1945-
46) period.
Although Jinnah�s leadership of the Muslims became securely 
established only after Lucknow, he was regarded even earlier as, in 
the words of Muhammad Iqbal (1877-1938), "the only Muslim in 
India... to whom the community has a right to look up for safe 
guidance through the storm that is coming..."Iqbal�s profound 
faith in Jinnah and his leadership also found expression in his 
fervent hope that "at this serious juncture your genius will 
discover some way out of our present difficulties."This explains 
why Iqbal, who first met Jinnah at the second Round Table 
Conference (1931) in London, came close to him on his return, 
writing to him regularly during most of 1936 and 1937.
In his letters to Jinnah, he discussed with him at length the 
political situation in the subcontinent and the burning issues of 
the day. He identified the long-term and short-term goals of Muslim 

India; he urged Jinnah to persevere and persist in his efforts to 
reorganize the League on a sound and stable basis, to galvanize the 
Muslims into a power to be reckoned with, and to lend coherence, 
direction and expression to their innermost urges and cherished 
Not only did Iqbal commend "Pakistan"to Jinnah as the only 
solution to the crucial problem of Muslim identity as well as of 
chronic Muslim poverty and backwardness in the subcontinent; but in 
1936, he also urged him to come out openly for "Pakistan"as a 
counter to Nehru�s Muslim mass contact campaign, raised on the 
rather enchanting appeal of bread and freedom. But the practical 
politician that Jinnah was, he felt that unless and until the 
Muslims were first united and organized on one platform, the 
adoption of the Pakistan goal by the League would be rather 
premature, even self-defeating.
In any case, by 1940 Jinnah was to discover the Muslim soul and 
give coherence and direction to the Muslims� innermost, but as yet 
vague, urges and aspirations. His efforts to concretize Muslim 
hopes and fears, as well as the quest for a destiny since 1936, 
were finally to culminate in the formulation of the Pakistan idea 
and its adoption in 1940 as the final goal of Muslim India. If 
Lucknow was a turning point in the careers of both Jinnah and the 
Muslim League, it also represented a watershed. By then Jinnah had 
arrived  and in a spectacular way.
He was now a completely changed man: from an "ambassador of Hindu-
Muslim unity"he had become the fiercest advocate of Hindu Muslim 
separation. For, under his forceful leadership, Pakistan had become 
Muslim India�s "defence,""deliverance"and "destiny."As a prelude 
to the new role he was soon to assume, his own standing with his 
people underwent a change: he became the Quaid-i-Azam, the supreme 
leader of Muslim India.  Even so, his assumption of the new role as 
the supreme leader of the Indian Muslims was, as it were, in the 
nature of an extension, perhaps a logical corollary, of his 
erstwhile role.
Till 1937 Jinnah had concentrated on the sober, cultured and 
enlightened section of the community in the belief that once that 
politically relevant and socially dominant stratum was won over, 
the whole community would follow suit and become involved in the 
struggle for emancipation.
However, a number of factors since Gandhi opted for a mass movement 
in 1919 had made that strategy obsolete; hence Jinnah went in for 
mass politics at Lucknow. Underlying all his efforts was the basic 
concept of ensuring political power to the Muslims in India�s body 
politic. In pursuit of that objective, he adopted the goal of 
independence  a Muslim homeland  a goal which had not only lain 
close to their (Muslims�) heart ever since they had lost political 
power to the British, but had also long haunted them.
In essence, then, it is in his bold and for the right promise to 
restore political power to Muslim India that one must really look 
for the more important of the clues to his spectacular rise and 
success as the supreme leader of Muslims, their Quaid-i-Azam, in 

the epoch-making decade of 1937-47.

Jansher�s fitness cause for concern in squash circles
A. Majid Khan
Returning to international squash circuit after the laser surgery 
of his knees by a surgeon in Lahore late in April this year, 
Pakistan�s squash wizard Jansher Khan could stay hardly six minutes 
before limping out of the court as he developed groin problem in 
the first round match against Abdul Fahim Khan, a Pakistani turned 
Hong Kong citizen.
According to press reports, 29-year-old Jansher Khan - record 
holder of eight wins in the US Dollar 74,000 Hong Kong Open and 
seeded second after Scotland�s Peter Nicol in the second super 
series event after the British Open held in April this year - 
pulled up in pain after stretching for a drop shot at 4-4. He 
trailed 5-6 before the defending champion conceded the match 
complaining of pain in his left groin.
In his post-match conference, however, Jansher Khan stated that he 
was mentally and physically fit and had undergone hard training in 
Peshawar. Also on record is his press statement on the eve of his 
departure for Dubai on his way to Hong Kong, that he was superfit 
to defend the title.
It was the second defeat of Jansher Khan when he could not defend 
the British Open title as he was beaten in the 50-minute final 
against Scotland�s Peter Nicol. The Khan was then also not fully 
fit as he complained of the knee problem prior to British Open in 
Karachi at a press conference after wining the PIA Open Squash 
championship for the Hasan Musa Trophy. He told the mediamen that 
he had consulted a renowned surgeon in Manchester for his knee 
problem and would like to have his left knee operated there. One 
fails to understand what led Jansher Khan to change his mind to get 
his knees operated in Lahore rather than in England.
After his knee surgery Jansher Khan expressed total satisfaction on 
his gradual improvement. He went through the prescribed exercises 
and practices for defending the Hong Kong title, which he first 
time won in 1987, a success that turned  out to be the stepping 
stone for his world glory and fame.
Seeking second opinion after his post-knee surgery by a world 
renowned surgeon is the need of the hour before Jansher Khan 
participates in the Al-Ahram International scheduled in Cairo from 
Sept 26. Jansher, the runner-up of last year�s Al-Ahram, definitely 
needs complete rest for his full recovery, rather than taking part 
in the Cairo event after his setback in Hong Kong.
Squash legend Jahangir Khan had also advised him to take rest and 
prepare himself for the World Open to be held in the Indian  city 
of Bangalore from Nov 29. In between three months three super 
series events are to held namely Al-Ahram International (Sept 27) 
Pakistan Open (from Nov 6-1) Qatar International (from Nov 22) 

ending the 98 season with World Open at Bangalore (from Nov 29) 
Non-participation in the three super series would result in 
Jansher�s further slide in the world ranking.
Jahangir Khan, had also suffered from the agony of his back 
problem. He skipped a good number of major tournaments including 
super series, staging a grand winning comeback before retiring in 
glory in 1993 at the age of 30.
Squash needs extraordinary fitness and after the Hong Kong incident 
Jansher Khan�s fitness has cast doubts on his playing career which 
is causing disappointment and concern in Pakistan.
The next best player after Jansher Khan is Amjad Khan, currently 
ranked world No 27 but his main problem is that no one is there to 
give him hard and rigorous training. He has no coach and trainer 
unlike other talented youths like Kashif Shuja (world No 49) Zumail 
Mahmood (world No. 60) Ejaz Azmat (world No 76). Humayun Khan 
(world No. 99) Mohammed Ilyas (world No 112) and Shahid Zaman 
(world No. 133).
These players are the product of the Pakistan Squash Federation 
coaching programme, launched over five years ago, but after 
reaching a certain stage they have no proper trainer and coach to 
groom them further.
Rehmat Khan, who trained Jahangir Khan into the greatest player the 
world has ever seen is an ideal choice for official coach of the 
federation. If Rehmat agrees to have a contract with the squash 
authorities in Pakistan it would certainly help the youths to make 
an impact on international squash as Rehmat is a hard task master.

Pakistan manage to beat Kenya 5-4 in hockey
Sydney Friskin
KUALA LUMPUR, Sept 9: Four goals from set pieces by the centre half 
Imran Yousaf highlighted Pakistan�s 5-4 victory over Kenya on 
Wednesday as the hockey event at the Commonwealth Games got under 
However, Pakistan had to hang on grimly to their advantage in the 
closing minutes in a scene of high drama marked by a deafening din 
created by Kenya supporters.
After building a 5-2 lead Pakistan were engulfed in a desperate 
struggle. This change of fortune began when the British umpire 
Steve Graham put the left half Waseem Ahmed under suspension for a 
desperate tackle. He was kept off the field for 20 minutes during 
which the Kenyans took every advantage of his absence. At one stage 
towards the end Pakistan were down to nine men. Irfan Mahmood 
having been carried off on a stretcher but he was back in action 
after a few minutes.
In the last 30 seconds Kenya forced a penalty corner from which the 
goalkeeper Ahmed Alam made a great save. It would have been a 
travesty of justice if Kenya had equalised.
As intended Pakistan deployed a four-man forward line composed of 
Atif Bashir, Mohammed Sarwar, Anis Mohammed and Babar Abdullah. The 
new system worked well in patches but it will take a little time 
before the quarter can mould itself into a sweet moving machine. 

Certainly, Imran Yousaf with his keen sense of opportunism more 
than made up for any deficiency in attack.
Kenya had one outstanding player, Raymond Ondong. It was difficult 
to tell exactly where he was playing. He began on the right wing 
but was soon all over the place. He was infact a oneman band, Kenya 
were quick into their stride but were soon repelled. Pakistan 
retaliated with an attack on the left led by Babar Abdullah but 
Kenya held out stubbornly under mounting pressure. An infringement 
by Kenya inside the circle brought. Pakistan their first penalty 
corner but although Danish Kalim was nicely positioned for a shot 
he missed the target.
In Pakistan�s first move of consequence Atif Bashir came in sharply 
along the goal line to force a penalty corner. The situation looked 
promising but Pakistan could not apply the finishing touch. A 
backpass by Atif Bashir led to a fierce tussle deep inside the 
circle and Kenya were penalised for stick tackling to concede a 
penalty stroke. Imran Yousaf duly converted in the 18th minute.
Seven minutes later, however, Kenya equalised from a penalty corner 
converted by Ondong with terrifying force and exquisite timing. 
Five minutes before the interval Imran Yousaf restored Pakistan�s 
lead from another penalty stroke justly awarded after Irfan 
Mahmoods stick was held down.
This lead put new life into Pakistan�s attack and five minutes into 
the second half a brilliant goal was scored by Mohammed Khalid from 
a square pass by Atif Bashir. A minute later the irrepressible 
Ondong converted another penalty corner for Kenya to cut the lead 
to 3-2. He should have had another five minutes later but this time 
his shot went astray.
Pakistan then took control of the match with Imran Yousaf 
brilliantly scooping into the net from a penalty corner and adding 
another goal from a penalty stroke soon after. So, Pakistan seemed 
happily launched until disaster struck with telling force Nicholas 
Induli scored for Kenya to reduce the lead to 5-3 and panic set in 
as Joel Senghe converting a penalty corner.
Yousuf sounds warning to many pretenders
Ian Fyfe
KARACHI, Sept 10: Reigning champion Mohammad Yousuf sounded a 
warning to the many pretenders for his crown, when he brushed aside 
teenage Aamir Sikander 4-0, in the 12th Red and White Latif Masters 
Snooker tournament which got under way at the Karachi Club on 
Thursday morning.
The former world and present Asian champion warming up for the 
encounters ahead, was content to chalk up a break of 39 points in 
the final frame.
Also posting 4-0 victories were second seed Farhan Mirza, who 
scored 54 points on the trot against newcomer Waqar Hussain, third 
seed Saleh Mohammad, who beat Noman Awan and fourth seed Shameel 
Shah, who registered a break of 65 points in his win over Imran.

Naveen Perwani was in tremendous form chalking up the highest break 
of 91 points in is 4-0 demolishing of Rizwanullah. His cousin Amit 
Parwani, also emerging a 4-0 winner against Kamran on the opening 
day had a quick break of 59 and another promising youngster Vishan 
Gir had fine breaks of 38, 38 and 35 in his 4-0 triumph over Amir 
But Atiq Latif Bux and Aneel Bherwani made heavy weather of the 
proceedings. On the brink of disaster, both these promising cueists 
came from behind to each post 4-3 victories.
Atiq, after losing the first frame to Mukhtar Khan on the black 
ball seemed doomed for defeat losing the next two frames. Mukhtar 
only a frame away from a spectacular win suddenly found the teenage 
Atiq fighting back tooth and nail as he surrendered the next two 
frames rather meekly 23/89, 9/86.
In a see-saw battle in the sixth, Mukhtar missed the black ball 
twice which would have won him the match. But these costly errors 
did cause his downfall.
Atiq trailing in the sixth 54/62 and needing the pink and black to 
draw abreast 3-3, first potted pink and after a few anxious minutes 
when Mukhtar failed twice to pot the last ball, then sank the black 
and was now on level terms.
Breathing freely once again, Atiq managed to keep ahead in a very 
closely fought out last frame and was indeed lucky to emerge a 4-3 
winner after pocketing the frame 44/37.
Aneel tied up with his medical exams seemed to be extremely out of 
touch as he lost the first two frames against M. Shadab Baig. 
However he recovered well to win the next two frames only to fall 
into arrears once again trailing 2-3 after losing the fifth.
But the bespectacled youngster was not over the hill as yet. 
Getting back into his strides, Aneel picked up the next two frames 
to squeeze through a 4-3 winner.
In another 4-3 marathon, Irfan Rashid Khan came back from the brink 
of despair to unsettle fancied Imran Shehzad from the Punjab. With 
the scores tied 1-1 and then 2-2, Imran took over the lead 3-2 
winning the vital fifth frame quite easily 71/44. Playing with a 
great deal of confidence Imran was in the lead once again in the 
sixth. Irfan needed three snookers and the six coloured balls to 
come back on level terms again at 3-3. A tall order indeed.
But Irfan a fighter to the core, surprised all and sundry. He 
snookered his opponent thrice and then potting all the coloured 
balls won the frame 61/60, which drew him a handsome round of 
applause from the snooker fans.
Racing into comfortable lead in the final frame, Irfan saw his lead 
dwindling as his wily opponent snookered him on three occasions. 
With the advantage of a free ball Imran also potted the blue and 
with the coloureds left on the table then sunk the yellow to 
further close the gap. Going for a difficult green, Imran�s spirits 
sank lower when the ball hit the jaw of the pocket and bounced back 
into play. Irfan potting green, brown and blue emerged a happy 
Fifth seed Shafiq Mohammad sounding breaks of 60 and 40, beat 
Balochistan�s Mustafa Hyder. Khurram H. Agha, another youngster who 
represented Pakistan in the recently concluded Asian championship, 
also came through a 4-1 winner over Muazbin Arshad, aided with fine 
breaks of 52 and 62 in the last two frames.
Also emerging 4-1 winners were Arifullah, who beat Mohammad Alam, 
former Pakistan No. 2 Younus Amir Bux, who got the better of 
Khurram Ather and S. Zartash Hussain, who beat of the challenge of 
Sarwar Siddiqui.
In the last match of the evening, NWFP�s Arshad Siddiq lost the 
first frame then came back strongly to hand out a 4-2 defeat to 
Kamran T. Khan.
The second day�s matches continue on Friday morning, with the first 
four commencing from 10.00 a.m. sharp.

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