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                          C O N T E N T S 

N A T I O N A L   N E W S
Nawaz, Li slam biased world approach
India wants  hegemony in region, says Nawaz
Jirga calls for wheel-jam today
Trade bodies oppose GST
Parliament to review contempt law
Tarar gives assent to contempt bill
IMF to suggest increase in utility charges
1,800 plots to be given for small-scale industries
Govt admits flaws ATA to be amended, says AG 
PPP files reference against Nawaz
Big cut in Sindh's share in federal divisible pool
SBP chief firm on demand for full powers

B U S I N E S S  &  E C O N O M Y 
3-year FCBCs launched
Half-yearly economic performance (1997-98)
Priority to trade with Pakistan
Pakistan will export more cotton to BD on Indian short crop
July-Jan trade gap reduced by 36.8pc
Active covering purchases on blue chip counters

E D I T O R I A L S  &  F E A T U R E S

Never say die                               Ardeshir Cowasjee
Red in tooth and claw                             Eqbal Ahmad
More promises, less faith                         M.H. Askari
Small traders' resistance                        Sultan Ahmed

S P O R T S 
Pakistan-India 'Test' starts in Rawalpindi today
Aaqib Javed to lead Pakistan 'A'
Asian Snooker Tour begins today
Olympian Tahir Zaman to play as centre-half 

                     N A T I O N A L   N E W S 
Nawaz, Li slam biased world approach
M. Ziauddin

BEIJING, Feb 11: Prime Minister Nawaz Sharif and premier Li Peng of 
China held wide-ranging talks here on Wednesday covering all aspects 
of bilateral as well as regional and global issues. 
Both the leaders opposed discriminatory approach towards 
implementation of UN resolutions and hoped Iraqi crisis would be 
resolved peacefully. "UN resolutions should not be implemented 
selectively", they observed. On Kashmir, China stressed that a 
solution to the problem must be found in accordance with the UN 
Soon after an official welcome in the afternoon at the Great Hall 
with the traditional 21 gun salute and a guard of honour, Prime 
Minister Nawaz Sharif who arrived here on Wednesday morning leading 
a large delegation, entered into talks with his Chinese counterpart 
which lasted over 90 minutes.
The prime minister met Li Peng at a one-to-one session of half an 
hour, then the aides from the two sides joined their leaders for 
wide-ranging discussions which lasted over 60 minutes.
At the end of the talks Pakistan and China signed two agreements, 
one pertaining to economic & technical cooperation and the other for 
plant quarantine.
Foreign Secretary Shamshad Ahmad Khan briefing newsmen said that 
leaders of Pakistan and China used the opportunity to explore new 
avenues for enhancing multi-faceted cooperation and further 
enriching the existing relations.
On Kashmir the Chinese leader reiterated his country's traditional 
support for Pakistan and "agreed that a solution to the problem must 
be found in accordance with the UN resolutions."
China's support for a solution in accordance with the United Nations 
resolution is being seen here as a departure from Beijing's recent 
stand of not mentioning the resolutions in its reference to Kashmir 
On the Afghan issue, the two leaders agreed that the people of 
Afghanistan should resolve their differences without any outside 
The two reiterated their support to the formation of a broad-based 
government in Kabul.
Discussing the Iraqi crisis the two premiers expressed the hope that 
the issue would be resolved through diplomatic efforts without 
resort to force.
Mr Sharif thanked his Chinese counterpart for the help his country 
had extended to Pakistan in setting up the Chashma nuclear power 

India wants  hegemony in region, says Nawaz
M. Ziauddin

BEIJING, Feb 13: Prime Minister Nawaz Sharif while discussing 
Pakistan's regional concerns with the Chinese intellectuals and 
media experts over a breakfast meeting here on Friday said that 
India was seeking to impose hegemony and dominance in the region.
For this purpose, he said, India had been building up a massive war 
machine, including a blue water navy, a powerful air force and 
nuclear and ballistic missile capability to deliver nuclear 
Stating that a strong and prosperous China was a guarantee for 
peace, security and stability not only in the region but in the 
world at large, Nawaz Sharif maintained that sharing fundamental 
strategic concerns of peace, "we can together make a positive and 
durable contribution to stability in our region.
"My initiative to resume dialogue with India remains frozen in its 
tracks as India has resiled from the understandings reached in 
Islamabad in June last year," the PM informed his audience.
He hoped that the new government in India would be amenable to a 
substantive dialogue with Pakistan on all issues on the agenda.
"On our part we remain committed to dialogue in a sincere search for 
permanent peace and stability," the primier held out an assurance.
He said Pakistan was prepared to sign the CTBT provided India also 
signed it. "We cannot, however, be expected to unilaterally give up 
our right to self-defence," he added.
He feared that India was seeking to exercise hegemony and dominance in the
region as it was 
building up a massive war machine, including a blue water navy, a powerful
air force and nuclear and 
ballistic missile capability to deliver nuclear warheads.

Jirga calls for wheel-jam today
By Our Staff Reporter

KARACHI, Feb 10: The Pashtoon Amn Jirga on Tuesday appealed to the 
people of Karachi to observe a peaceful wheel-jam strike on 
Wednesday in protest against the kidnapping of Rifat Bibi, who was 
abducted on Feb 2 at Omar Farooq Colony in North Nazimabad.
In their statements, Pashtoonkhwa Milli Awami Party, Sindh, and 
Karachi Transport Ittehad announced their dissociation from the 
strike call given by the Pashtoon Amn Jirga for Wednesday.
A report circulated by APP says the Pashtoon Amn Jirga has 
dissociated itself from the strike and appealed to the people not to 
observe strike.(Details on Page 5).
ALTAF TALKS TO AJMAL: MQM chief Altaf Hussain talked to ANP 
president Ajmal Khattak on Tuesday night and they agreed that some 
disgruntled elements were trying to disturb ethnic harmony in 
Karachi by exploiting the issue of the Pashtoon girl's kidnapping . 
They said the strike call was part of the same conspiracy.
The Muttahida Qaumi Movement's coordination committee has said that 
"government agencies and its paid agents are bent upon destroying 
peace in Sindh and they are trying to incite ethnic riots."
It said the MQM leaders had been making efforts for the recovery of 
the abducted girl.

Trade bodies oppose GST

RAWALPINDI, Feb 8: The office-bearers of different traders 
associations of the city have announced that they will not accept 
the imposition of general sales tax without the preparation of 
formal practical working paper for the GST.
In a meeting held at the office of Rawalpindi Chamber of Commerce 
and Industry (RCCI) here on Sunday, they stressed the need for 
giving solid and fruitful suggestions to be submitted in a scheduled 
meeting on Feb 23 between the government and the representatives of 
business community.
They lauded the role of president RCCI Sohail Altaf in presenting 
the traders point of view effectively in a meeting between the 
office-bearers of Anjuman-e-Tajiran and the Finance Minister Sartaj 
Aziz on Saturday.
The traders urged the government to deal the issue with great care 
and maximum facilities should be fetched for the retailers.
The RCCI spokesman said that the meeting discussed at length the 
implication of GST with regard to its implementation. The meeting 
held that the business community was not against the GST but 
differences of opinion existed on its implementation.
He said that in presence of smuggling, under-invoicing and overall 
corruption, the enforcement of GST would not be successful. It 
required the proper education of retailers and documentation of 

Parliament to review contempt law

LAHORE, Feb 11: The parliament will consider amending a new contempt 
law under which conviction by the Supreme Court is automatically 
stayed on filing an intra-court appeal, Attorney-General Chaudhry 
Mohammad Farooq informed the Lahore High Court full bench hearing 
the petitions against Anti-Terrorism Act, 1997, on Wednesday.
The AG was dilating on the absence of right of appeal in case of 
conflicting decisions by an ATA court and an appellate tribunal. 
Justice Karamat Nazir Bhandari, a member of the bench, had asked him 
whether there was any provision for an automatic stay in the amended 
contempt law.
It may be recalled that the amendment bill was passed by parliament 
on Nov 20, 1997, during the pendency of a contempt case against 
Prime Minister Nawaz Sharif before the Supreme Court. A bench headed 
by the then chief justice, Sajjad Ali Shah, had declared the bill 
illegal and unconstitutional, and restrained the president from 
signing it.
The stay against the presidential assent was vacated by another SC 
bench chaired by the present Chief Justice Ajmal Mian who, 
nevertheless, observed that the government should ensure that the 
enactment did not impinge on the independence of the judiciary: "It 
will be desirable that the concerned functionaries should examine 
the contents of the bill in order to see whether the proposed Act 
contains any provision which may be violative of the Constitution or 
which may tend to interfere with the independence of the judiciary," 
said the CJ in his order of Jan 12 last.
The government reportedly re-examined the bill but found nothing 
objectionable in it and President Rafiq Tarar finally gave his 
assent to it on Feb 7.
The AG's statement before the LHC full bench on Wednesday means that 
the Contempt of Court (Amendment) Act, 1998, would now be reviewed 
by parliament in the light of the Supreme Court observations.
The AG concluded his arguments on Wednesday and the bench, which 
consists of Justice Ihsanul Haq Chaudhry and Justice Mohammad Islam 
Bhatti besides Justice Bhandari, will assemble at 11:00am on 
Thursday to hear the petitioners' counsel.

Tarar gives assent to contempt bill
Bureau Report 

ISLAMABAD, Feb 8: President Rafiq Tarar late Saturday night signed 
the Contempt of Court (Amendment) bill.
The Aiwan-i-Sadr faxed a one-page Press release to newspaper offices 
on Sunday night to communicate the development.
On Saturday evening, sources at the presidency and other government 
officials had told reporters that the president had not given assent 
to the bill as yet.
A spokesman dismissed as "speculations" newspaper reports of 
differences between the government and the presidency over the 
issue. "Instead, there is a complete harmony between these two 
organs of the state," he said. 
Agencies add: Sources at the presidency said President Tarar signed 
the bill Saturday midnight after hectic consultations between the 
presidency's legal wing and the ministry of law. The ministry 
contended that the bill was only meant to give a person the right to 
appeal against a decision of the supreme court in a contempt case.
The law ministry was of the view that right to appeal was a 
fundamental right and the bill was only meant to give it legal 
Sources said some "influential personalities" intervened in the 
matter and after that, at 10:30pm the president sought a report on 
the government's steps for taking the judiciary into confidence. 
"The president signed the bill only after his full satisfaction that 
the new law will not hurt the feelings of the judiciary and in no 
way affect the dignity of the institution," they said.

IMF to suggest increase in utility charges 
Ikram Hoti 

ISLAMABAD Feb 9: The International Monetary Fund (IMF) has started 
the first round of scanning the record of government receipts from 
public utility services. The IMF has undertaken the study to 
assessing the potential exercised during the first half of financial 
year 1997-98, and to suggest the volume of increase in utility 
service charges in Pakistan during the current fiscal.
The IMF appraisal team, led by Director Antonio Furtado, is 
currently undertaking an assessment of public finance handling by 
Islamabad during the period July-December 1997. It has been given 
the task to submit an assessment to the IMF headquarters on receipt 
and expenditure.
The report will be examined in Washington during the next fortnight 
and suggestions will be made in the light of it to Islamabad to 
increase the rate of utilities to make up for the gap occurring in 
receipts due to lowering the tax rates for 1997-98.
Currently, the IMF team is scanning the records of the Central Board 
of Revenue, WAPDA, PTCL, KESC, SNGPL/SSGC and other revenue-
generating organizations in the public sector. The exercise aims to 
make a comparative study for an appraisal as to what volume of 
receipts the government has been able to make during the July-
December period.
With this study, they are also assessing as to how much amount the 
CBR had to forgo in taxes due to reduction in rates and the 
exemptions allowed to a number of industries from March to December 
last year.
The IMF team has been scanning the records on these reductions and 
exemptions for drawing up a sum total of potential loss in taxes and 
a comparative study of the collections made under different tax 
heads during the first six months of the current financial year.
The CBR has recorded a Rs 38 billion shortfall in collection of 
revenues during the period and the IMF team is undertaking a study 
to compare this shortfall with the amount of the unavoidable tax 
loss due to lowering of the tax rate and exemptions.
According to CBR sources, the IMF suspects that the actual shortfall 
in collection of taxes during July-December is far greater than the 
projected loss accruing due to lowering of rates.
The IMF has already made it clear to the Ministry of Finance and the 
Central Board of Revenue that a host of exemptions allowed to 
various industries in taxes during July-December was an exercise 
carried out by Islamabad in total "repugnance of the undertaking 
with the IMF for rationalizing the tax structure during the current 
financial year".
The IMF team reviewing tax receipts is reported to have demanded 
clarification on the causes leading to exemptions causing a loss of 
huge amounts in taxes. Official sources told Dawn that the IMF was 
considering these exemptions as one of the major violations 
committed by Pakistan against the EFF package.
The IMF had been given an undertaking by Pakistan that the reduction 
in tariff as per WTO demand would be the thrust of rationalization 
of the tax structure.
The IMF team has reportedly sought explanations from Islamabad as to 
why it took major decisions with regard to tax rates in disregard of 
the EFF package.
The IMF team is also scanning records in response to the charges 
made by traders against changes made in the sales tax structure.
The heavy reliance being demanded by IMF on improving the sales tax 
side after getting Islamabad to reduce tariff rates, the Fund is 
examining as to what potential the sales tax has demonstrated in 
contributing towards the overall collection of taxes during the 
first half of 1997-98.

On the income tax side, the IMF team has reportedly taken exception 
to the fact that the department has been heavily relying on IT 
receipts from sources other than those falling in its own 
The team has found that the IT department has been unable to meet 
targets set for the July-December period due to poor performance in 
the collection of direct tax. The income tax department relies 
heavily on deductions at source through the customs department.
The team is reported to have also found that a host of exemptions 
allowed to various industries from the payment of central excise 
duty has been one of the major factors causing a shortfall in 
revenue generation. The team has sought explanations on this count 
and has reminded the government that Pakistan could not afford to 
shower such benefits on the industry as it goes against the "spirit 
of tariff rate reduction."

1,800 plots to be given for small-scale industries
Staff Reporter

KARACHI, Feb 10: Sindh Housing and Town Planning Minister Waseem 
Akhtar has said more than 1,800 small industrial plots have been 
carved out and will be given to the genuine people.
Speaking at a press conference here on Tuesday, he said a 
transparent and fool proof system had been formulated through which 
only genuine and deserving people would be given the plots to set up 
small and cottage industries.
He said the scheme had been launched keeping in view the growing 
unemployment and the limitation of the government to recruit 
everybody. Under this scheme people could establish their small and 
cottage industries and not only become self-employed but also 
provide employment to others.
He said it had been noticed that people after getting the allotments 
did not set up industries or start construction for years and the 
schemes flopped. To counter that problem a transparent method would 
be adopted so that only genuine people could get the plots.
He said a 'scrutiny committee' would be formed which would go 
through all the applications and later the short-listed people would 
be called for individual interviews. Names of those recommended by 
the scrutiny committee would be presented in the governing body of 
the Karachi Development Authority (KDA), after which a computer-
balloting would be held. He, however, maintained that no favouritism 
would be done in the allotment.
He said applications could be submitted between Feb 15 and March 15, 
after which these would be presented in the scrutiny committee and 
passed through the governing body within a month. By April end 
balloting would be held and after completing all the formalities and 
provision of the facilities the possession would be handed over to 
the successful allottees by the end of this year by early next year.
These plots  between 120 square yards and 2,000 square yards  will 
be given in North Karachi, Surjani Township, Landhi and Korangi 
areas. He said over Rs400 million would be recovered as the land 
cost, and over Rs250 million would be spent on the provision of 
various infrastructure facilities.
The minister said in a few places the infrastructure facilities  
roads, water, sewerage, electricity, etc  were already present but 
where these were not present, these would be provided shortly. He 
said that over 300 applications for such plots, pending with the KDA 
since 1990s, would be sympathetically considered under this scheme.
Mr Akhtar said most of the land on which these plots had been carved 
out was under encroachment by landgrabbers and had been recently 
recovered from them.

Govt admits flaws ATA to be amended, says AG 
Shujaat Ali Khan

LAHORE, Feb 10: The Anti-Terrorism Act, 1997, is being amended to 
ensure security of tenure to the special judges appointed under it, 
the attorney-general informed the Lahore High Court full bench 
hearing petitions against the enactment on Tuesday.
As for the ATA provision envisaging trial in absentia despite 
consistent superior court judgments against it since 1989, Chaudhry 
Muhammad Farooq assured the bench that he would make a submission in 
this regard also on Wednesday, when he would resume his arguments at 
In another significant concession, the AG, who commenced his 
arguments on Monday with a general defence of the impugned Act, said 
there should be a right of appeal against the appellate tribunal's 
decisions and he would suggest to the government to provide one by 
amending the ATA.
About the security of special judges' tenure, Mr Farooq said he 
discussed the matter with the Punjab chief minister during the 
current proceedings and Mian Shahbaz Sharif told him that the matter 
could not receive due attention because the government was in a 
hurry to enact a law to fight the menace of terrorism and is now 
considering amending it.
The AG requested the bench, which consists of Justice Ihsanul Haq 
Chaudhry, Justice Karamat Nazir Bhandari and Justice Muhammad Islam 
Bhatti, to make an observation in this regard (security of tenure) 
in its judgment to strengthen the hands of law officers.
The concessions were made by the AG when the bench asked him whether 
the ATA was in consonance with the two Lahore High Court full bench 
judgments that struck down certain provisions of the Suppression of 
Terrorist Activities (Special Courts) Act, 1975, The Offences in 
Respect of Banks (Special Courts) Ordinance, 1979, and the Banking 
Tribunals, Ordinance of 1984.
Speaking broadly, Mr Farooq said, the judgments required that the 
special judges under the impugned laws should be appointed in 
consultation with the chief justice concerned and that they should 
enjoy security of tenure.
The AG said the ATA judges were appointed in consultation with Chief 
Justices Sheikh Riaz Ahmed and Mamoon Kazi of the Lahore and Sindh 
High Courts, who were both given lists of lawyers to pick and choose 
from. He reiterated that the special judges had to be appointed 
because no sessions or additional sessions judge was prepared to try 
cases involving sectarian terrorism.
The bench pointed out that the 1996 LHC judgments contained certain 
other observations and directions besides the two referred to by the 
AG. It said how could a law leaving special judges to the mercy of 
the executive could be enacted after the 1996 judgments.
Justice Bhandari referred to a salutary provision of the Punjab 
Public Service Commission Act under which a commission member enjoys 
a five-year secure tenure and can be removed from office only after 
an inquiry by a high court judge.
The AG agreed that if a special judge could only be appointed in 
consultation with the CJ, he could also not be removed without 
consultation with him (the CJ). He would make a suggestion to the 
government in this respect also. The special courts under the LHC 
judgments were to function under the supervision and superintendence 
of the high courts, he conceded.
The AG also agreed that the LHC full bench had observed in the two 
judgments that instead of appointing new special judges, serving 
additional district and sessions judges should be designated special 
judges and the funds thus saved should be allocated to strengthen 
the judiciary by filling up the existing vacancies and creating new 
ones to deal with the ever increasing quantum of litigation.

PPP files reference against Nawaz
Bureau Report

ISLAMABAD, Feb 9: Pakistan People's Party on Monday filed another 
reference against Prime Minister Nawaz Sharif and Chief Minister 
NWFP Mehtab Khan Abbassi on alleged charges of illegally acquiring 
land near hill resort of Abbottabad.
The reference to the Chief Ehtesab Commissioner Justice (retd) 
Mujadid Mirza was submitted by President PPP NWFP, Senator Masood 
Kausar, head of PPP media cell, Farhatullah Baber and a local PPP 
lawyer Baber Awan.
The reference seeking disqualification of Prime Minister Nawaz 
Sharif and Mehtab Abbassi also implicated three other members of the 
family of Mehtab Abbassi.
It alleged that in January 1993 Mr. Abbassi with the active 
connivance of the prime minister and his brother Sardar Ishtiaq 
Ahmed, cousins Sardar Fida ullah and Sardar Farid Ahmed acquired 
property of Sultan of Boi.
Mehtab Abbassi, it said, struck a deal of 864 kanals with a widow of 
one Kashif Khan, a heir of Boi estate. There was a dispute among the 
legal heirs of the estate resolution of which could have taken year. 
Therefore Mehtab Abbassi appointed one of his close confidant as a 
Tehsildar of Abbottabad who settled the property dispute in a period 
of 11 days and issued a decree to Mr. Abbassi, it alleged.
Later Mr. Abbassi through the police and Frontier Constabulary took 
the possession of the land. But other legal heirs of the land went 
into litigation.
Besides accusing Mr. Abbassi of misusing his official position to 
intimidate and harass the legal heirs of the Boi state, the 
reference also charged him of depriving stamp duty to the public 
exchequer by showing low price than the actual amount paid to the 
The petitioners called upon the Ehtesab Commissioner to immediately 
issue orders of the arrest of the prime minister, the chief minister 
and other alleged accomplice and their case be referred to the 
Lahore High Court.
"As the law of the land does not permit to support anybody if he is 
found guilty or any illegality is proved against him whether he is 
head of the state or person of any class will definitely be punished 
and no concession should be given in this respect because law of the 
land is equal for every citizen so it applies very much on the 
respondents too," it said.

Big cut in Sindh's share in federal divisible pool
Staff Reporter

KARACHI, Feb 9: A shortfall of almost Rs10 billion in the federal 
divisible pool because of poor tax collection by the Central Board 
of Revenue during January 1998 has resulted in a massive cut in 
Sindh's monthly share of funds.
The federal government dispatched a total amount of Rs814.61 million 
on Saturday with a message that it was all the amount for Sindh's 
January share. This included Rs669 million from the divisible pool, 
Rs133.74 million as direct transfer from excise on natural gas and 
Rs11 million royalty on natural gas.
"It has upset our entire budgetary projections for resource 
availability as well as expenditure and has put a big question mark 
on payment of salaries to 450,000 employees of the Sindh government 
early next month," a well-placed source in the Sindh government 
Budgetary projections indicated Sindh's share at Rs2.02 billion in 
January which included Rs1.49 billion from the divisible pool and 
direct transfer of Rs82.66 million on account of royalty on crude 
oil, Rs124.87 million royalty on gas and Rs188.76 million 
development surcharge on gas.
Reports emerging from Islamabad suggest that the Central Board of 
Revenue could mop up hardly Rs17 billion taxes during January as 
against the projection of Rs27 billion. All the component taxes of 
the divisible pool including income tax, central excise and sales 
tax could not be recovered according to the projections.
Sindh is facing a shortfall of over Rs6 billion in its share of 
funds from Islamabad which has virtually brought to a halt all 
development activities and has affected even day-to-day working. "We 
have been forced to save Rs6 billion from expenditure budget," a 
senior official remarked, who said that the paucity of funds had 
left no choice but to cut down heavily on the expenditures which 
were otherwise essential.
The reduction in Sindh's share of funds from Islamabad has also led 
to accumulation of Rs1.5 billion additional markup liability on 
account of an unceasing overdraft with State Bank for the last 15 
Officials contend that if Islamabad would have maintained the flow 
of funds to Sindh according to the schedule, the markup liability on 
account of State Bank's overdraft would have been less by over Rs500 
With reports that the government is finding it difficult to enforce 
sales tax on retail level which would result in further reduction in 
tax collection, officials in Sindh see harder days ahead and hope 
that all these problems would be discussed in the meeting of the 
Inter-Provincial Coordination Committee scheduled to be held in 
Karachi in the third week of this month.

SBP chief firm on demand for full powers
Raja Zulfikar

ISLAMABAD, Feb 8: The State Bank Governor, Dr Mohammed Yaqub, has 
agreed to stay in office for the time being, said Finance Minister 
Sartaj Aziz while talking to Dawn .
Sen Aziz said Dr Yaqub had agreed to continue as the SBP governor 
but would make a final decision about how long he would remain in 
office after his (Sartaj Aziz's) return from China. The finance 
minister will accompany the prime minister on an eight-day visit to 
China and Hong Kong.
Meanwhile, according to sources, Dr Yaqub insisted during his talks 
with the finance minister that he be given full authority if the 
government wanted him to remain in office.
Sen Sartaj said he talked to the SBP governor on telephone and 
expressed optimism that Dr Yaqub would continue till June.
"Give me some time so that I could decide how long to continue," 
Sartaj Aziz quoted Dr Yaqub as saying.
The finance minister during his conversation with the SBP governor 
told him that he would decide about other details after he returns 
from China.
After talking to the State Bank governor, Sen Aziz called the prime 
minister who is in Lahore and informed him about the telephonic 
conversation with Dr Yaqub. He may have a meeting with the prime 
minister in this regard some time on Monday when the prime minister 
returns here from Lahore.
Sources said the resignation of the SBP governor had been on the 
cards for the last few months, but the situation took a serious turn 
when he refused to oblige the private sector for extending it huge 
long-term project financing.
There has been a lot of opposition and criticism against Dr Yaqub 
for not conceding anything to businessmen, some of whom reportedly 
enjoyed great access and blessings of Prime Minister Nawaz Sharif.
Nevertheless, things aggravated on Jan 19, the governor had taken a 
strong plea against the long-term project financing at the first 
meeting of the business advisory council.
During the question-answer session the businessmen were awarded an 
opportunity by the prime minister to speak out their minds. And they 
did not waste time to accuse the governor of being so rigid and not 
looking into the requests for long-term project financing.
After a number of businessmen complained about the non-availability 
of liquidity for the private sector, the prime minister asked Dr 
Yaqub to answer the question.
But the SBP governor forcefully rejected the assertions and claimed 
that up to December, banks had extended a credit of Rs 54 billion to 
the private sector against Rs 50 billion the previous year. However, 
he made it clear that those requests which were not viable or their 
sponsors did not offer considerable collaterals, had been rejected.
The governor looked firm and kept pleading that unscrupulous loan 
seekers must not be entertained. He was of a view that things would 
further deteriorate if loans to the private sector were offered 
without completing the required procedure.
Insiders said the first meeting of the Business Advisory Council was 
first of its kind when the governor felt like resigning because he 
was not in a mood to oblige the private sector.

                 B U S I N E S S  &  E C O N O M Y
3-year FCBCs launched
Staff Reporter

KARACHI, Feb 10: The federal government has launched a three-year 
foreign currency bearer certificate on Tuesday in dollars and pound 
sterling in place of 5-year FCBCs whose sales has been discontinued.
While informing all the banks of this decision the State Bank of 
Pakistan has asked them to surrender the unsold stocks of 5-year 
The new 3-year FCBCs would be tradable in lots of 1000, 5000, 10,000 
and 100,000 dollars and 1000, 5000, 10,000 and 50,000 pounds. They 
will carry floating rates of profit which shall be paid every six 
months, says the State Bank circular issued to the banks adding that 
the profit will be paid on the basis of Barclays Bank, London's bid 
rate plus a margin as indicated on each coupon. "No profit will, 
however, be paid for the broken period the certificates are held 
beyond the maturity date."
These certificates may be encashed after a minimum holding period of 
six months without any penalty. Banks can also discount these 
certificates after a period of six months. The discounted value 
would be payable at the option of the holder, either in the 
respective foreign currency or in equivalent Pakistan rupees at the 
banks' buying rate for the respective currency.
These certificates may be purchased without any limit by 
individuals, firms, institutions and bodies corporate irrespective 
of their nationalities and place of residence, excluding banks and 
financial institutions operating in Pakistan.
Payments for purchase of the certificate can be made by means of 
remittance in the relative foreign currency from abroad in favour of 
an office of issue, from a foreign currency account held with a bank 
in Pakistan, tender of respective foreign currency notes or 
travellers cheques issued outside Pakistan or encashments proceeds 
of Foreign Exchange Bearer Certificates.
Subject to certain provisions in the gazette notification about the 
new FCBCs, the profit earned on them shall neither be liable to 
income tax nor shall it be taken into account for the purpose of 
determining the rate of income tax on total income.

No compulsory deduction of Zakat will be made on these certificates 
and investment in the same will also be exempt from wealth tax. 
There is no restriction on possession, or import or export of these 
certificates and they can be transferred by mere delivery.
The payment of encashment proceeds and payment of periodical profit 
will be made in Pakistan rupees or at the option of the holder in 
relative foreign currency in the shape of foreign currency notes, 
travellers cheques, demand transfers, telegraphic transfers, mail 
transfers in the name of the beneficiary indicated by the holder or 
by credit to the foreign currency account maintained with a bank in 
The new FCBCs will not be issued against foreign exchange which 
represents sale proceeds of goods exported from Pakistan, earnings 
of residents on account of services and the earnings/profits of the 
offices/branches of Pakistan firms/companies/banks working abroad.

Half-yearly economic performance (1997-98)
Dr Mahnaz Fatima

PAKISTAN'S half-yearly economic performance has already been widely 
discussed by various quarters with the government trying to appease 
the masses through a favourable evaluation of an economic situation 
that the independent analysts find difficult to accept.
The government needs to realize that gone are the days when people 
tended to accept the government's evaluation at face value and the 
analysts were kept gagged as during the 1960s.
Many old timers still remember the 60s as the "golden age" mainly 
due to the then ruler's tight control over all kinds of freedom in 
general and freedom of expression in particular.
The preposterous manner in which the past rulers took liberties with 
the liberties of the people is now a detested relic of Pakistan's 
dictatorial past.
In this post-Cold War era; openness and participation through 
various democratic processes have been globally legitimized as the 
basic rights of the people which they will retain at all costs. A 
wise government would, therefore, be one that will see the economic 
facts as they are as these are also starkly visible to all.
For, a distortion of reality is a reflection on the wisdom of the 
economic soothsayers at the helm of affairs.
And, capability unless coupled with wisdom, is not the route to 
popularity that all elected governments seek at the end of the day 
to be returned to office at the end of the term.
Lessons might again be learnt from the Malaysian leadership which 
presented the harshest economic reality to the people it was faced 
with and was thus able to mobilize their understanding and support.
On the contrary, in Pakistan, facts and economic indicators are 
adequately dressed up before they are reported to the people.
One such indicator is that of inflation which, even according to the 
most rudimentary of estimates, is in double digits. For, one needs 
no refinement of analysis if one happens to be a purchaser of goods 
and services in Pakistan.
Any buyer would refute the claims of the ministry of finance or the 
State Bank of Pakistan that inflation in Pakistan is a single-digit 
phenomenon of the order of 8 per cent as per the finance ministry, 
or 9 per cent as per the SBP.
A one per cent enhancement in the rate of inflation is no display of 
autonomy by the SBP nor is the issue of inflation about a few 
percentage point differentials as the burden from increasing price 
line needs no precise quantitative analysis for an illustration. 
Naked observations reveal the reality that keep the consumers 
totally bewildered. 
>From the point of view of consumers, even more annoying is the fact 
that the oil price decrease from the Asian slump or the decrease in 
the value of palm oil imports due to a high depreciation in the 
Malaysian currency are not passed on to the consumers.
This latter fact should be equally annoying to the producers who are 
denied a reduction in their costs of production which remain high, 
as their fuel and transportation costs and the wage bills remain 
under pressure.
>From the point of view of the government though, the above 
international price benefits cannot be passed on to the consumers 
and producers as the government's fiscal position remains the 
biggest barrier.
The 1997 gala of fiscal incentives and concessions could not 
translate into higher industrial output and revenues as had been 
believed by the economic wizards of the country.
So, the most striking discomforting feature about the six- monthly 
economic evaluation is the government's claim about a shortfall of 
only Rs 11 billion in revenues when the actual shortfall is about Rs 
29 billion.
The revenue target for 1997-98 was Rs 324 billion which means Rs 162 
billion for the first six months. Actual collection during the first 
six months has been Rs 133 billion.
The CBR sources concede that this lower than targeted collection has 
been due to various tax rates reduction and reduced industrial 
activity which further resulted in lowered imports and reduced 
importation tax collections (Dawn, 16-1-98).
Many of us had tried to alert the government to this sad outcome 
before the 1997 fiscal "incentivization" spree but the neo-classical 
economist luminaries prevailed over this crucial aspect of a new 
elected government's economic policy only to make us see the 
undesirable results now and only to have six-monthly economic 
evaluation couched in terms of targets revised downwards.
Unemployment rate

In all state evaluations, the most ignored and ill-treated indicator 
remained that of unemployment. During the press conference with the 
finance minister, one of the key economic managers said that the 
unemployment rate ranged between 3 per cent and 4 per cent (Dawn, 
The l996-97 Pakistan Economic Survey reports an unemployment rate 
estimate of 5.37 per cent during that year. The first pertinent 
question, therefore, is as to how could this rate be lowered further 
during July-December 1997 when industry could not be revived and 
when some of the most massive layoffs from the public sector took 
place during this period.
It has always been the contention of this writer that since the 
claimed rate of unemployment is even below the natural rate of 
unemployment in developed countries, our country's economy should 
not just be booming but should be overheating.
Since it is far from it, there is a problem in the calculation of 
the rate of unemployment in Pakistan which was pointed out by this 
writer in a 1995-96 IBA-AERC Budget Working Group report that 
explained the anomalous definitions of 'unemployed' and 'employed' 
used for this purpose.
The 1996-97 Pakistan Economic Survey (PES) quotes the latest 
(undated) Labour Force Survey which defines the term 'unemployment' 
even more ambiguously.
It includes "all persons 10 years of age and above who during the 
period under review were: (a) without work..., (b) currently 
available for work...., and (c) seeking work, i.e., had taken 
specific steps in a specified period to seek paid employment or 
self- employment."
It is unclear from the definition whether (c) supersedes (a) & (b) 
above in the latest Labour Force Survey calculations. For, if it 
does not, then (c) is redundant and need not be mentioned.
However, figures indicate that 'unemployed' does not include (a) or 
(b) as with a crude participation rate of 27.46 per cent, the total 
labour force comes to 37.15 million as per PES 1996-97. 
And, population comprising 10 years of age and above would be 
roughly 90 million out of which only 37.15 million are in the labour 
force as per the Refined Activity Rate (RAR) of over 41 per cent.
Also, according to PES 1996-97, there were 35.15 million employed 
during that year. So, if as per the PES quoted definition, "all 
persons 10 years of age and above without work during the period" 
are 'unemployed,' then the unemployed should be estimated as 54.85 
million and not 2 million as claimed in the PES 1996- 97.
Parity with $ rules stable

THE RUPEE-DOLLAR official parity ruled stable for the fourth month 
in a row.

The parity was last adjusted by the central bank on October 15, 
1997, when the rupee was devalued by 8 per cent and pegged to a 
dollar at Rs 44.05 for spot buying and Rs 44.27 for spot selling. 
Since then it had continued unchanged.
Against other major currencies at the foreign exchange counter, the 
Pakistani rupee has gained over most major currencies, amid 
fluctuations, in the past four months.
Last week, the rupee continued to show firmness over most 
currencies. The State Bank of Pakistan has every currency except 
dollar, pound sterling, Japanese yen and German mark free of 
control. It will continue to quote the exchange rates of these four 
In kerb trading, the rupee opened the week on February 2, on a 
negative note and lost five paisa against the dollar when trading 
resumed after a four-day closure on account of Eid holidays, amid 
increasing demand for the dollar.
The dollar was quoted at Rs 46.45 for spot buying and Rs 46.48 for 
spot selling. Because of the strong demand for the US currency the 
rupee came under renewed pressure on February 4 after remaining 
stable at Rs 46.45 and Rs 46.48 on February 3.
On February 4, the rupee ended with a sharp loss of 15 paisa against 
the dollar to close at Rs 46.60 and Rs 46.63 following the 
purchasing pressure from corporate clients.

Priority to trade with Pakistan
Staff Reporter

KARACHI, Feb 9: The Australian government considers Pakistan as one 
of the important emerging markets of South Asia and has decided to 
accord priority to its bilateral trade relations during current 
This was stated by the Australian Minister for Foreign Affairs, 
Alexander Downer on Monday, while inaugurating the newly constituted 
Australian-Pakistan Business Forum (APBF).
After achieving desired results on designating 1997 as the 'Year of 
South Asia,' the visiting minister said both sides have come to know 
each other better and there has been growing awareness about each 
other's market.
Although the two countries, he said, share some common features, but 
little attention was paid to expand the relationships.
However, he said, 'I am pleased to say that the Howard government on 
recognizing the potential of South Asia moved to correct the 
situation by enhancing Australian presence in the region on 
improving its bilateral relations with the countries of the Indian 
For achieving these objectives, the minister said, his government 
took a number of measures to stimulate Australian interests in 
Pakistan and as a result of this, 1997 has turned out to be a record 
year for the Australian business in Pakistan.
He said Australian merchandise exports for the first eleven months 
of 1997 exceeded $A450 million, 100% up on the same period in 1996, 
and more than 50% better than in any previous year.
Likewise, he said, prospects for Australian investment in Pakistan 
are also bright and he felt that if only the current crop of 
prospective investments reach the production stage, 'we will see an 
increase from the current level of investment of around $A250 
million to in excess of $A2 billion.'
While lauding the reform packages covering tariffs, agriculture, the 
capital markets and banking Downer said, 'undoubtedly Pakistan has 
the most liberal foreign investment regime in the South Asian 
On our part, he said, the Australian government is doing a lot to 
assist its businessmen to look towards Pakistan as a potential 
market. As a follow-up to the Year of South Asia, the minister 
maintained, Pakistan has been included in the government' next Trade 
Outcome and Objectives statement.

Pakistan will export more cotton to BD on Indian short crop
Staff Reporter

KARACHI, Feb 9: Pakistan's export of cotton to Bangladesh is 
expected to show a considerable increase during the current season 
as India has shown its inability to make any commitments owing to a 
short crop.
According to information available from the private sector cotton 
exporters, import enquiries from the Bangladesh buyers are virtually 
flooding their offices each day and fresh contracts are expected to 
be signed during the next few days.
Pakistani cotton is said to be most suited to the Bangladesh 
spinning industry and spinners would like to meet bulk of their 
annual demand from here after Indians' failure to ship their annual 
"We have already shipped about 50,000 bales to Bangladesh during the 
last four months at competitive prices and the figure now could 
swell to 0.450 million bales worth Rs 5 billion", said a leading 
He said both the c&f prices and the shipment deadlines given by the 
Bangladesh importers suits us and there are no fears of possible 
default to meet the deadlines on part of any exporter despite some 
shipping problems owing to a long distance.
Bangladesh imports over a million bales worth Rs 12 billion each 
year to feed its textile industry, bulk of which comes from India 
for obvious reasons including saving on freight and duty waivers, 
exporters said.
"A short crop in India has proved a blessing in disguise for us as 
we are capable of stepping in the footsteps of our Indian 
counterparts", hoped an exporter.
India needs half a million bales of long staple lint cotton for 
blending purposes and to spin fine type of yarn for its expanding 
export market owing to the failure of the current crop.
"But India does not need medium staple length lint from Pakistan as 
is speculated in the local business circles", said an exporter.
Pakistani exporters have already sold 0.336 million bales of cotton 
worth Rs 3.5 billion to over three dozen importers, notably from the 
South Asian countries against which they have already physically 
shipped 0.275 million bales up to January 22, since Sept 1,1997.

July-Jan trade gap reduced by 36.8pc
Muhammad Ilyas

ISLAMABAD, Feb 11: Pakistan's exports in January 1998 plummeted from 
$837.9 million in December 1997 and from $650.1 million in January 
1997 to $597.5 million in January 1998  a drop of 28.69% and 8.10%, 
respectively, according to Federal Bureau of Statistics statement on 
foreign trade.
The cumulative total of exports for the period July-January came to 
$4.9 billion  only 5.05 per cent more than during the first seven 
months of 1996-97. The growth is still positive because of the 
increases in the earlier part of the financial year.
Despite this dismal performance of exports, the trade gap narrowed 
to $1.33 billion by the end of January, 1998, showing a dramatic 
reduction of 36.8 per cent over the corresponding period of last 
year. This was because of continuing decline in imports. The import 
figures ($804.8 million) for January 1998 show a decline of 20.97 
per cent over the corresponding month of last year. As compared to 
December, 1997, the imports were lower by 15.04%. Cumulatively, 
imports amounted to $6.27 billion during July-Jan, 1997-98, down by 
7.95% from $6.81 billion in the corresponding period of last year.
This brought Pakistan closer to the target of $2 billion for trade 
Category-wise analysis shows that the downward trend of manufactured 
exports continues. The only group which registered positive growth 
again in January, 1998, was the agricultural commodities for which 
the credit goes to mother nature. But that is only when we compare 
the figures for January 1998 with January 1997. Here we come up with 
an improvement of 32.7 per cent in terms of dollars. As against 
December, 1997, however, exports have plummeted by 18.0 per cent.
Reinforcing the impression of incremental deterioration of the 
economy since November, 1997, rice stands as the only item which 
shows improvement, by inching up by a mere 2.65% in dollar terms 
over December, 1997. Exports of all the other primary commodities 
In comparison with January, 1997, rice exports were higher by 67.2% 
in quantity. During the first seven months of current financial 
year, Pakistan exported over 1.01 million tons including 238,002 
tons exported during January 1998. The value in foreign exchange 
that accrued from export of rice amounted to $272.3 million in the 
period July-January, 1997-98, or 40.1% of proceeds from primary 
commodities which totalled $678.3 million.
The next highest earner of foreign exchange was raw cotton. The 
quantity of raw cotton exported during the seven month period was 
64,541 tons. Of this quantity, 10,496 tons of cotton were exported 
in January. This shows 51.7% drop from December 1997. However, a 
sharp 2007% increase was registered, when compared to January, 1997.
Except vegetables and oil seeds, nuts etc., all the other items in 
the category "primary commodities" show decline during July-January, 

Active covering purchases on blue chip counters
Staff Reporter
KARACHI, Feb 13: Heavy post-interim dividend sell-off by some 
leading bargain-hunters in Hub-Power weighed heavily against the 
underlying sentiment but the broader market managed to put up an 
improved show, thanks to strong covering purchases in other pivotals 
at the dips.
The board of directors of Hub-Power on Thursday announced a maiden 
interim dividend for the half-year ended Dec 31, 1997, at the rate 
of 70 per cent per share, which was said to be quite in line with 
the market philosophy. But those who were not inclined to hold on to 
their positions realized capital gains after the announcement, 
selling heavily, pushing its price below the benchmark level of Rs 
60 to 57.90.
"A Rs 7 per share interim dividend on a 10-rupee share is an 
attractive return on an investment and genuine investors look at it 
in that way", some analysts said.
Its ruling prices could rise from the current lows after the same 
set of sellers, which is now indulging in profit-selling at the 
lower levels.
An interim dividend at the rate of 40 per cent for the half- year 
ended Dec 31,1997 by Burshane Pakistan was on the higher side of the 
market thinking but its impact was not reflected in its share value 
owing to shortage of the floating stock, dealers said.
PTCL, another market trend-setter followed its lead but selling was 
largely attributed to weekend considerations rather than any bad 
news about its corporate earnings.
Its board meeting is being held this month and market sources said 
it could follow the lead of Hub-Power as its interim earnings are 
also said to be on the higher side.
Earlier, in the session the selling was fairly aggressive owing 
partly to weekend considerations but in the afternoon session 
investors were back in the rings and made active covering purchases 
on the blue chip counters. The KSE 100-share index after initial 
decline managed to finish with a fractional rise of 1.94 points at 
1,722.51 as compared to 1,720.57 day earlier, indicating that the 
market could roll back after investors made heavy covering purchases 
in Hub-Power below Rs 60.00. It was last quoted around 57.90.
Bulk of the two-way activity remained centred in the energy sector 
as investors were not inclined to move out of them on market talk of 
higher earning for the first of the current financial year. About 70 
per cent of the total volume was confined to this sector.
Another pivotal, PTCL followed, falling by 40 paisa on heavy selling 
but towards the fag-end of the session, it managed to recoup most of 
the early losses, thank to strong foreign buying.
Big gainers were led by Lever Brothers which rose Rs 73 to Rs 
1,423.00; followed by PSO rising by Rs 6; Orix Leasing, Adamjee 
Insurance, Shell Pakistan, Engro Chemicals and some others also rose 
by Rs 1.60 to 3.50.
Losers included Network Leasing, EFU Insurance, Bata Pakistan, 
Reckitt and Colman, Glaxo Lab and Mitchell Farm Fruits falling by Re 
1 to Rs 3.
Volume fell to 68.384 million shares from the previous 97 million 
shares owing to the absence of local institutional traders. Out of 
the 156 actives, 63 shares fell, while 50 rose, with 43 holding on 
to the last levels.
PTCL topped the list of most actives, off 40 paisa on 33.936 million 
shares; followed by ICI Pakistan up 55 paisa on 15.427 million 
shares; Hub-Power easy 85 paisa on 11.318 million shares; FFC-Jordan 
Fertiliser up 35 paisa on 1.396 million shares; and KESC higher Rs 
1.15 on 1.108 million shares.
DIVIDEND: Hub-Power interim cash 70 per cent, Burshane Pakistan 
interim cash 40 per cent, Sindh Abadgar's Sugar mills 15 per cent 
BOARD MEETINGS: Golden Arrow Selected Stocks,Salfi Textiles, and Tata
Textiles on Feb 16; 
Kohinoor Gujar Khan Mills, Kohinoor Raiwind Mills, Kohinoor Textiles, Bannu
Woollen, Janana De 
Malucho Textiles, Babari Cotton and Balochistan Wheels on Feb 18;
Shakaregang Sugar Mill, First 
IBL Modaraba on Feb 20; Hashimi Can Company on Feb 21; and Crescent
Investment Bank on Feb 

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              E D I T O R I A L S  &  F E A T U R E S

Never say die 
Ardeshir Cowasjee

THIS column is all about a public interest case filed in the High 
Court of Sindh by a few concerned citizens of Karachi, desperately 
trying to preserve the fast-fading environment of their city.
Reproduced, is a statement dated December 15, 1997, filed in the 
Supreme Court of Pakistan concerning the disposal in the Sindh High 
Court of an urgent stay application in the matter of the commercial 
complex ('The Plaza') comprising some 250 shops and offices being 
constructed by Shaista Estates Ltd on residential plot No.G-7, Block 
9, KDA Scheme 5, to be precise at the 'Do Talwar' roundabout in 
Clifton where 34 traffic lanes converge and in which area the 
construction of no other commercial building has been allowed.
29/7/97: Witnessed written confirmation for the first time that the 
subject residential plot had not been lawfully converted into a 
commercial plot [letter from the Chief Controller of Buildings, 
Karachi Building Control Authority (Respondent No.2) to the Director 
General, Karachi Development Authority (Respondent No.3).]
31/7/97: KBCA (Respondent No.2) wrote to the President of the 
Clifton Cantonment Board (Respondent No.1) confirming that the 
residential plot had not been lawfully converted into a commercial 
plot and that R1 should take appropriate action to mitigate the 
11/8/97: The five petititioners filed a petition in the High Court 
of Sindh (CP 1524/97) along with, inter alia, injunction application 
(CMA 4089/97).
12/8/97: SHC: Wajihuddin Ahmed and Zakir Hussain Mirza JJ. 
Wajihuddin J. would not hear it as he had, as Advocate-General of 
Sindh, early in 1987 given permission in terms of Section 91 CPC to 
file a case in respect of the same construction for declaration and 
injunction to restrain a public nuisance.
12/8/97: SHC: Kamal Mansur Alam and Sabihuddin Ahmad JJ. Because of 
the urgency of the application, the matter was placed before this 
DB. Sabihuddin J. declared, "Not before me."
13/8/97: SHC: CJ Mamoon Kazi and Majida Rizvi J. Hearing of petition 
and application adjourned to 15/8/97.
15/8/97: SHC: CJ Mamoon Kazi and Majida Rizvi J. Petition admitted 
but injuction application was adjourned for hearing to 26/8/97.
18/8/97: Petitioners filed urgent application (CMA 4181/97) pleading 
that the builders (Respondent No.9) should be ordered to cease 
construction without giving any notice until the hearing of the 
application (CMA 4089/97).
19/8/97: SHC: CJ Mamoon Kazi and Majida Rizvi J.CMA 4181/97 was 
adjourned for hearing to 26/8/97 .
20/8/97: Petitioners filed an appeal in the Supreme Court (CPLA 
21/8/97: Supreme Court: Ajmal Mian J.  In Chambers.CPLA 284K heard. 
It was ordered, inter alia :"The High Court will dispose of the 
above stay application on 26/8/97 after hearing the parties."
26/8/97: SHC: CJ Mamoon Kazi and Majida Rizvi J. ordered that the 
matter be heard by a special bench on 5/9/97, and that the 
application be heard with the main case.
28/8/97: Supreme Court: Ajmal Mian J.  in Chambers. Petitioners 
filed an application dt. 28/8/97 under Order 33 Rule 6 of Supreme 
Court Rules. Heard the same day. Justice Mian ordered, inter alia : 
"As the disposal of the constitutional petition may take 
considerable time, the SHC may first decide the stay application as 
ordered by me on 21/8/97 .
5/9/97: SHC: Justices Majida Rizvi and Amanullah Abbasi. Justice 
Abbasi declared, "Not before me."
13/9/97: SHC: Justices Majida Rizvi and Rashid Rizvi adjourned the 
matter to 15/9/97.
15/9/97: SHC: Justices Majida Rizvi and Rashid Rizvi adjourned the 
matter to 18/9/97.
17/9/97: DG KDA (Respondent No.2) filed an affidavit in the SHC 
reconfirming that the plot had not been lawfully converted.
18/9/97: SHC: Justices Majida Rizvi and Rashid Rizvi. Matter 
adjourned in SHC to 22/9/97.
22/9/97: SHC: Justices Majida Rizvi and Rashid Rizvi. Petitioners' 
counsel concluded his arguments.
24/9/97: Respondent No.3 filed an affidavit reconfirming that 
theresidential plot had not been lawfully converted.
29/9/97: SHC : Justices Majida Rizvi and Rashid Rizvi. Hearing 
6/10/97: SHC : Justices Majida Rizvi and Rashid Rizvi Matter 
adjourned to 13/10/97 as Justice Rashid Rizvi had been transferred 
to Hyderabad.
10/10/97: Respondent No.1 filed an affidavit in the SHC, along with 
notice to Respondent No.9 to stop work as they had violated the 
building plans.
13/10/97: SHC:Justices Majida Rizvi and Rashid Rizvi. Case 
discharged as Justice Rizvi was in Hyderabad.
27/10/97: SHC: Justices Majida Rizvi and Rashid Rizvi. Case 
discharged, although Justice Rizvi was in Karachi but busy with 
other matters.
3/11/97: SHC: Justices Majida Rizvi and Rashid Rizvi. Case 
discharged as there was a court reference for newly appointed 
10/11/97: SHC: Justices Majida Rizvi and Rashid Rizvi. Respondent 
No.9 continued arguments.
24/11/97: SHC: Justice Majida Rizvi declared "Not before me ."
9/12/97: SHC:Justice Hamid Ali Mirza and Zafar Hadi Shah. 
Petitioners' counsel started arguing de novo. The honourable Judges 
said they would hear the stay application and the main petition 
together. The petitioners' counsel stated that the Supreme Court had 
ordered that the stay application be decided before proceeding with 
the main case. He would proceed to argue the main petition but asked 
that his submission may be noted.
10/12/97: SHC:Justices Hamid Ali Mirza and Zafar Hadi Shah. 
Petitioners' counsel handed in a statement of fact. The honourable 
judges were upset and ordered that the case may not be placed before 
TO SUMMARIZE: Established and recorded in court  That the lessors 
of the plot, the KDA, have confirmed that residential plot G-7 has 
not been lawfully converted to a commercial plot, that the 
residential status of the plot remains unchanged, that the law does 
not permit a commercial building to be built upon a residential 
plot, that it is an offence to utilize a residential plot for any 
purpose other than a residence as prescribed by law, and that the 
lessors have informed the plan-approving and building control 
authority, in this case the Clifton Cantonment Board (CCB), that 
they should "take appropriate, corrective and remedial action."
- That the CCB has served a notice on the builders ordering them 
tocease construction as they have violated the approved building 
- That the District Magistrate, Karachi South, has served a notice 
on the CCB: "In terms of Section 51(2) referred to above, I hereby 
serve you with a notice to suspend all action/construction on the 
above plot which you may have taken pursuant to the relevant 
Resolution of your Board and take no further action until the matter 
is disposed of by the Central Government."
So far, ten judges of the Sindh High Court have dealt with this 
petition (CP 1524/97), urgent injunction application (CMA 4089), and 
other related applications, over 117 days, i.e from 15/8/97 when the 
petition was admitted until 10/12/97 when the case was last heard.
Six honourable judges of the SHC felt compelled to order "Not before 
me "
On December 31, CPLA 284-K/97 was heard for the third time in the 
Supreme Court by Chief Justice Ajmal Mian and Justice Nasir Aslam 
Zahid. The judges "regretted" that their orders had so far not been 
implemented by the SHC. They remarked that it would take only two 
hours to hear and dispose of the stay application and again 
categorically ordered that it be heard and disposed of by the SHC 
before January 20 1998.
On January 13, the case came up for hearing in the SHC before a 
special bench comprising Justices Dr Ghous Mohammad and S.A. 
Sarwana. Justice Sarwana said "Not before me."
On January 15, it again came up before another special bench 
comprising Justices Dr Ghous Mohammad and Syed Saeed Ashhad. It was 
heard and adjourned to January 19. It was heard that day and also on 
January 20. On January 28, the order was passed and construction was 
stayed. Inter alia, the order stated,"The crux of the matter 
concerns the validity and legal effect of the conversion of the use 
of the plot in issue."
So far, end of story. The citizens were represented by that 
indefatigable people's lawyer, Barrister Mohammed Gilbert Naim-ur- 
Rahman who also believes in the maxim 'never say die'. The 
respondents were represented by Barrister Abdul Hafeez Pirzada, 
Advocates Rana Ikram, Abid Zuberi, Yawar Farooqui, Ibrahim Dasti and 
Iqbal Memon. For the governance of any country, and particularly a 
developing country over-populated by illiterates and plagued by 
successive corrupt inefficient governments, it is essential to have 
an independent unpoliticised judiciary. The more corrupt and 
inefficient a government, all the more is its desire to have a 
crippled judiciary. Resistance to this can only come from those who 
suffer, that is, the people. We must persevere.

Red in tooth and claw
Eqbal Ahmad

The violence of Islamism has emerged as a subject of anxious concern 
throughout the world, especially the muslim world. In the United 
States, the Islamic resistance to Israel's occupation of Lebanon, 
the West Bank, Gaza, and Golan and such incidents as the alleged 
plot to blow up the International Trade Centre in New York City, 
have aided the media and other propagandists' politically motivated 
campaign to demonize Muslims and Islam as a threat to western 
interests and civilization itself.
Their motivation is suspect as it condones Israel's US-aided 
violence on an enormously larger scale while condemning Arab 
resistance it. It is suspect also because, as we shall presently 
discuss, the United States and Europe have played a historic part in 
spawning the violence of groups and individuals they now denounce, 
rather brazenly, as "Islamic fundamentalist". The U.S. and European 
countries largely withdrew from the enterprise after their interests 
had been served, while the native peoples among whom they promoted 
the violent ideological enterprise are continuing to pay the heavy 
price of it.
Countries, such as Algeria and Egypt, are virtually in a state of 
civil war between the Islamists of differing hues and secular 
regrettably authoritarian governments. Among these countries, 
Pakistan is distinguished in several ways: One, it is the original 
staging ground of Jihad as an international movement. Two, unlike 
Algeria and Egypt it has had a parliamentary system of government 
with four elections since 1988 in which the voters' percentage of 
Islamic parties has been declining.
Three, unlike Algeria and Egypt where Sunni majorities pre- 
dominate, Pakistan is a multi-denominational country where non- 
Sunni constitute an estimated quarter of the population. 
Furthermore, even the Sunni are divided by theological disputes - 
the one between the Barelvis and Deopbandis is the primary example - 
which have tended to turn violent. Hence, there is a proliferation 
here of violence. So far we have witnessed the mutual terror of 
Sunni and Shi'a, of Sunni group against Christians and Ahmedis, and 
killings across the Barelvi-Deobandi divide. The potential is 
Four, Pakistan remains Islamism's 'front-line state', so to speak. 
The war in Afghanistan continues and, in multiple ways which I 
discuss later on, impacts on the internal developments in this 
country. Finally, Pakistan's is an ideologically ambiguous polity; 
here, political paeans to Islam have served as the compensatory 
mechanism for the ruling elite's corruption, consumerism and kow-
towing to the West. As a consequence, the ideologically fervent 
Islamist minority keeps an ideological grip on the morally insecure 
and ill-formed power elite. It is this phenomenon that explains the 
continued political clout of the extremist religious minority even 
as it has been all but repudiated by the electorate. Yet, horrors 
escalate by the day, and neither their original sponsors, nor the 
victims are doing much about it.
Pakistan is a prime example of the mayhem, and official failure to 
address it. From the bombing of the Egyptian embassy in Islamabad to 
the recent massacre in Lahore's Mominpura Cemetery, this country is 
strewn with innocent victims of Islamist extremism. Yet, these 
tragedies have barely caused any reflection in this country, and 
others whose policies sowed the seeds of the so-called 'Islamic 
terror'. The bare truth is that as a world-wide movement Jihad 
International Inc. is a recent phenomenon, a modern, multi-national 
conglomerate whose founders include the governments of USA, 
Pakistan, Saudi Arabia, Egypt, and Israel. It was the American 
sponsored anti-communist crusade in Afghanistan that revitalized in 
the last quarter of the twentieth century the notion of Jihad as the 
armed struggle of believers. Israel's invasions and occupation of 
Lebanon, the West Bank, Gaza, and Golan continue to invest it with 
moral meaning and give it added impetus.
Never before in this century had Jihad as violence assumed so 
pronounced an 'Islamic' and international character. The twentieth 
was a century of secular muslim struggles. The Ottomans fought their 
last wars in essentially temporal terms  in defence of a tottering 
empire and, at least in the Middle East, against predominantly 
Muslim foes. From the rise of Saad Zaghlul to the demise of Abdul 
Nasser, the Egyptian national movement remained secular and 
explicitly Arab and Egyptian. This was equally true of the Iraqi, 
Syrian, Palestinian, and Lebanese national struggles. The Turks 
attained their liberation under the banner of intemperate 
secularism. Iranian nationalists fought and forged a Belgium-like 
constitution at the start of this century. In India, Muslim 
nationalism  opposed by an overwhelming majority of Indian Ulema - 
defined the demand and achievement of Pakistan. All these movements 
had some resonance among other Muslim peoples who were similarly 
engaged in anti-colonial struggles but none had an explicit pan-
Islamic context.
Jihad  noun=struggle, from the Arabic root verb J.D.=to strive - 
was nevertheless a favoured word among Muslims in their struggle of 
liberation from colonial rule. When my brother was expelled from 
school after raising the nationalist flag, he was welcomed in our 
village as a mujahid = one who struggles. In the Maghrib, Algerian 
nationalist cadres who engaged France in an armed struggle for seven 
gruelling years were called Mujahideen, and their news organ was 
named El-Moudjahid. This newspaper was edited for a time by Franz 
Fanon, a non-muslim, and the struggle was led by a secular 
organization  Front du Liberation National (FLN).
In Tunisia, the national struggle was led by Habib Bourguiba, a die-
hard and Cartesian secularist who enjoyed nevertheless the title of 
Mujahidul-Akbar. The word Jihad did occasionally appear as a 
mobilizing slogan of the 1978 Iranian revolution but Enghelab - 
revolution  actually dominated as the symbol of the uprising 
against the Shah. After seizing power Iran's revolutionary 
government adopted Jihad-i-Sazindazi - jihad for reconstruction  as 
its mobilizing symbol. Without a significant exception, Jihad was 
used during the twentieth century in a national, secular, and 
political context until, that is, the advent of the anti-soviet war 
in Afghanistan.
For the first time in this century the standard bearers of a Muslim 
people's struggle for liberation were Islamic parties opposed to 
"godless communism", committed to its violent overthrow, and 
dedicated to the establishment of an "Islamic state" in Afghanistan. 
Theirs was a Jihad in the classical, strictly theological sense of 
the word. Ironically, they had the support of western powers as no 
liberation movement ever did. The United States and its allies 
supplied to the Mujahideen an estimated ten billion dollars worth of 
arms and aid. They also invested in this Jihad the legitimacy of 
their enormous power, and the lustre of their media made glory.
On one especially memorable occasion when Afghanistan's hard line 
Islamist visited the White House, President Ronald Reagan described 
them as the Muslim world's 'moral equivalent of our founding 
fathers'. Similarly, the American and European media played up the 
war in Afghanistan as the greatest story of the eighties. Foreign 
correspondents combed the Hindu Kush for stories of 'Mooj' heroism. 
Competition for Jihad narrative was so great that in one instance a 
major network, CBS, paid handsomely to film a staged battle between 
Islam and Communism. As the western media carries great importance 
and authority in the third world, its Afghanistan war coverage made 
an enormous impact especially on Muslim youth.
Within a year of the Soviet intervention, Afghanistan's was on its 
way to becoming a pan-Islamic Jihad. Hundreds, eventually thousands, 
of young Muslims from places as far apart as Algeria and the 
Philippines, Sudan and Sinkiang travelled to Peshawar and Torkham, 
received training in the use of arms, and under the strict guidance 
of various Islamic parties became ideologically ripe and tasted more 
or less of the Jihad-in-the-path-of-God. The United States 
government and its vaunted intelligence agency saw in this process a 
cold war opportunity to pit militant Islam against communism. Had 
the Soviet Union not collapsed unexpectedly, it is likely that the 
United States shall still be benefitting from this historic 
mobilization of jihad.

More promises, less faith
M.H. Askari

POLITICAL stability in the immediate neighbourhood can be of vital 
concern to Pakistan for the resolution of its bilateral disputes 
with India, but, judging from the way that the election campaign for 
the twelfth Lok Sabha is going, the prospects of political stability 
next door remain elusive.
What is even of greater concern is the growing cynicism among the 
Indian intelligentsia in regard to the election promises, if what 
appears in newspaper comments and is said in the discussions on the 
TV channels beamed across India's borders are any indication. Even 
major Indian dailies have been repeating the hackneyed observation 
that 'promises are to be broken' and that the 'same tired, 
unfulfilled vows' keep on surfacing again and again.
The opinion polls conducted from time to time only add to 
unpredictability about the possible outcome of the Indian elections. 
Although most forecasts suggest that the Bharatiya Janata Party 
(BJP) would emerge as the largest single party, a Committee for 
Secularism set up in New Delhi, with the veteran Muslim politician, 
Syed Shahabuddin, as convenor, is confident that if the secular 
elements were to get together they could reduce the BJP to a 
hopeless minority.
The Committee which apparently comprises a number of leading 
intellectuals, including Rajni Kothari, Kuldip Nayar, Prof Amrik 
Singh, V.R. Krishna Iyer, Ali Muhammad Khusro, Prof Imtiaz Ahmad, 
Syed Hamid and Muzaffar Hasan Burney, estimates that with the 
secular elements joining hands together, the Congress could secure 
as many as 263 seats and the United Front 235 seats. The Committee 
claims that it has based its estimates on the prospect of election 
of the secular candidates who are in the field and had won, or came 
close to winning, in the last general elections. If the Committee's 
assumptions turn out to be correct and there is a true meeting of 
minds between the secular candidates belonging to the Congress and 
the UF, the BJP would get no more than 45 seats. Whether the 
Committee has enough time at its disposal to mobilise public opinion 
in favour of its point of view is nevertheless very doubtful.
All the same, judging from the trend of statements issued by the 
various political party leaders and in the panel discussions on the 
Indian TV channels, there is a virtual consensus in India on keeping 
the country secular. The BJP's mushrooming popularity is perceived 
as a serious threat, but the BJP leaders themselves seem to have 
been forced into adopting a defensive, if not apologetic posture, 
even while reiterating their hardline position on sensitive issues 
such as the construction of a Ram Mandir in Ayodhya or Kashmir.
At the end of a "grilling session" in which the BJP prime minister-
designate, Atal Bihari Vajpayee, was in the dock, the verdict of the 
'judge' was that the BJP leader combines in himself both Churchill 
and Chamberlain. (This was a clear reference to Neville Chamberlain 
as Britain's prime minister having entered into the infamous Munich Pact
with Hitler in 1938 and to Churchill eventually winning the war 
as head of a coalition cabinet taking Hitler and his allies head 
In a panel discussion on one of the Indian TV channels, the 
participants included the known conservatives M.V. Kamath and Aroon 
Shourie, the pro-Congress Shankar Pandya and two prominent Muslim 
leaders Syed Shahabuddin and Dr Rafiq Zakaria. Even though Shourie 
with his uncamouflaged pro-BJP stance argued for the "whole of the 
state of Jammu and Kashmir including the areas under the occupation 
of Pakistan and China" as being an integral part of India and 
favoured India retaining its nuclear option, the overall tenor of 
the discussion could not have been regarded as communalistic. In 
fact, there was virtually a consensus on the principle that the 
state should be neutral and equi-distant from all religions and that 
the state should have nothing to do with religion (and vice versa).
Syed Shahbuddin went to the extent of saying that in his view India 
was like a large temple and the Hindu deity Ram its high priest, but 
it is extremely doubtful if even a single Muslim in India or 
elsewhere would agree with his description of Ram as 'Imam-ul-Hind'. 
(It is quite possible by going overboard while reiterating his 
secular-mindedness, Syed Shahabuddin may have shot his bolt and in 
fact alienated the very Muslims whose cause he was supposed to be 
Cynically Indian commentators frequently express the feeling that 
the party manifestos have in effect been reduced to a poll-eve 
ritual even if an important formality but signifying nothing. 
However, Pakistan (and India's future relations with Pakistan) 
feature directly or impliedly in the manifestos of BJP, Congress and 
United Front which were released in the last few days. The BJP has 
unequivocally reaffirmed India's "sovereignty" over the whole of the 
disputed state of Kashmir and has spoken of "taking active steps" to 
persuade Pakistan to abandon its "hostile interference" in India's 
internal affairs.

Small traders' resistance
Sultan Ahmed

PAKISTAN'S official economic performance and its new commitments for 
the immediate future are under detailed scrutiny now. An IMF team 
led by director Antonio Furtado is evaluating its fiscal 
performance, while the World Bank mission will be here for 20 days 
scrutinising the progress in restructuring of administrative set-up.
Their endeavours are supplementary to the regular studies of 
resident missions of the IMF and World Bank in Pakistan. The release 
of the second tranche of 208 million dollars under IMF's 1.6 billion 
dollar three-year Extended Structural Adjustment Facility, signed 
after scrapping several earlier agreements, would depend on the 
satisfactory findings of the IMF mission here.
The IMF is upset by the varied slippages in revenue collection after 
the binding commitments of the government to stay by the agreed 
targets, and fears the second half year's performance may not be any 
better despite the hopeful pictures painted by the finance minister 
and others. The deficit of over Rs 20 billion in tax collection 
despite the greatly lowered target for the first half of the 
financial year, while the total revenue target is Rs 324 billion, is 
indeed disturbing for the IMF.
The reasons for the shortfall in revenues are obvious. Among them 
are a fall in customs revenues following the large drop in imports, 
tax concessions given to trade and industry after the budget was 
presented on June 13, continued stagnation in the manufacturing 
sector which pays the bulk of the taxes, and delay in the levy of 
sales tax at the retail level. And now the levy of the three per 
cent tax at the retail level on selected items has been postponed 
pending a settlement with the recalcitrant traders who prefer paying 
a low fixed tax to accounting for their sales and paying full taxes.
We have an economic pattern in which most industrialists do not want 
to repay their large bank loans, while traders and the service 
sector as a whole, want to pay as little of taxes as possible and 
the feudal lords are simply unwilling. Earlier militant 
organizations like the All Pakistan Textile mills Association 
continued to disregard the government and demanded too much from the 
government while paying too little and now the traders have 
organised themselves in the name of Anjumen-e-Tajiran and Business 
Council want to evade as much of tax as possible, particularly sales 
tax now.
And smuggling in highly taxed items, like tea, continues to be a 
major affliction of Pakistan and a large source of revenue loss. The 
deeply corrupt customs machinery has not been able to check the 
corruption and instead has joined hands with the smugglers and 
profit by that handsomely. How can revenues rise in such a negative 
environment? How far can Moinuddin Khan, chief of the old CBR now 
renamed Pakistan Revenue Service, and given a fabulous pay, turn 
around this outrageous system remains to be seen.
The issue now is not paying the three per cent sales tax which in 
fact will be paid by the consumers but documentation. They do not 
want their transactions to be documented from the bottom of the 
retail stage to the wholesale or import stage and made to pay all 
the taxes, including income tax, on that basis. They do not want the 
source of their supply to be traced and smugglers exposed and 
smuggled goods seized. They have won the battle against 
documentation for the last 15 years since Dr Mahbubul Haq made a 
positive move in that direction but was frustrated by the 
businessmen. Documentation is an absolute anathema to them. They see 
the 3 per cent retail sales tax as the tip of the ice berg which 
they want to protect and preserve. Hence small traders of Karachi 
have offered to pay 50 per cent more than the official retail sales 
tax target if they were not to be forced to register with the 
taxation department. It is true, as they say, the tax departments 
are corrupt and not all shops have the staff to write cash memos, 
but the real reason for the opposition is their desire to stay off 
documentation or scrutiny by taxation officers, as long as possible.
As a result, the liberty Market where the affluent cosumers of 
Lahore do shopping and Bohri Bazar of Karachi where the less 
affluent do shopping pay very little of taxes despite their large 
sale. Meanwhile the Prime Minister Nawaz Sharif who is soft on the 
traders as demonstrated in the fracas that has led to the 
resignation of the Governor of the State Bank of Pakistan Dr 
Muhammad Yakub is to decide the future of the retail sales tax or 
documentation of business transactions after he meets them at a mega 
conference on February 23.
What is painful is that although Mr Nawaz Sharif is a businessman 
himself and he wants to help traders and industrialists, his ability 
to influence them for the good of the country is too small. They are 
ready to exploit his solicitude for them to their own advantage 
while he is not able to make them open a new chapter in their life 
for the lasting good of the economy. One reason could be his 
preference to meet them in large numbers and make a mela of that 
instead of having small business-like meetings with them and getting 
them to do what he wants and the country needs.
When it comes to the manner in which the P.M. censured or brusquely 
handled Dr Yakub at the Business Advisory Council meeting the 
Pakistani businessmen with hardly an exception are with him while 
the bankers, multinational chiefs and others present there are 
supporting the governor. What the P.M. has not been able to realise 
is the economic crisis in East Asia is principally a private sector 
crisis, a crisis caused by banks or over-generous banking and 
reckless borrowing and wild investing. If Dr Yakub had followed the 
same policy, instead of trying to sustain the Prudential Regulations 
zealously our banks would have come to the same sorry pass. If today 
virtually half the loan portfolios of public sector banks and DFIs 
are infected, a lax policy of the East Asian kind would have 
resulted in almost all the loans being infected. We have to thank 
the governor for his prudent enforcing and monitoring of the 
monetary policy and banking regulations.
The fact is that he has not been too rigid towards the government. 
While he did espouse his montery policy stridently he did make the 
kind of concessions the government sought. He had earlier gone to 
the extent of accommodating the government so much that he had even 
agreed to announce the mini-budget of the Benazir government in 
October, 1996, from the State Bank headquarters.
                            S P O R T S 
Pakistan-India 'Test' starts in Rawalpindi today
Farhana Ayaz
ISLAMABAD Feb 12: The first unofficial cricket 'Test' between 
Pakistan "A" and India "A" starts at Rawalpindi Cricket Stadium on 
The touring side also had 70 minutes net session. After having a 
look at the hard and green Pindi wicket, manager Surinder Khanna was 
all praise for the strip and the venue. Coach Krishnammachari 
Srikkanth announced the Indian "A" playing eleven. "I think the 
groundsmen should be complimented for preparing such a true wicket.
The visitors are going in with three medium pacers, and two spinner. 
"Our batsmen have been enjoying the tour and the bowlers have also 
done a decent job but test cricket is a different ball game so lets 
see," the coach said adding that Pakistan was a slightly more 
experienced side.
In skipper Gagan Khodda, vice captain Bahutule and Test pacer 
Debashish Mohanty, the Indian team has depth of rationally tested 
talent newcomer Wasim Jaffar holds the world record of unbeaten 314 
runs in his second game of first class cricket. Playing for Mumbay, 
he achieved the feat against Saurashtra last season.
The two balanced sides are expecting to produce high quality cricket 
with the youngsters testing their mettle to make a mark.
Surinder Khanna, Indian manager, said that the series provides the 
best chance to youngsters of both sides to make their mark. "The 
cricket series between the two countries has great pressure and 
those players who can handle this pressure, they certainly brighten 
their chances to make a break through in the national team."
The manager said, cricket between the two countries always provides 
top quality contest. "We are looking forward to an excellent series, 
where youngsters from both sides can enhance their skills," he said.
About Indian side the manager said, it was balanced team with good 
batting and bowling strength. Gagan Khoda, Bahutula, Wasim Jaffar, 
Sanjay Raul and Jatin Parajpe have displayed good form in the side 
games. Bowling has variety with Debashish Mohanty, Ajit Agarkar, 
Bahutule, Murali, he said.

India "A": Gagan Khoda (captain), Sairaj Bahutule (vice captain), 
Mannava Prasad (wicket-keeper), Abbas Ali, Jatin Paranjpe, Sanjay 
Raul, Ajit Agarkar, Wasim Jaffar, Debashish Mohanty, N. Madhukar, 
Murali Kartik. Noel David 12th man.
Pakistan "A" (from): Aaqib Javed (captain), Basit Ali (vice captain), Salim
Ellahi, Shahid Khan 
Afridi, Hasan Raza, Rana Qayyum-ul-Hassan, Muhammad Hussain, Humayun
Farhat, Murtaza 
Husain, Naeem Ashraf, Fazal-i-Akber, Jaffar Nazir and Azhar Shafiq.

Aaqib Javed to lead Pakistan 'A'
Sports Correspondent

LAHORE, Feb 10: A 13-member Pakistan A cricket team has been 
announced for the first 'Test' against Indian A team after getting 
approval of the Pakistan Cricket Board (PCB) council here on 
The first 'Test' of three-match series will be played at Rawalpindi 
from Feb 13.
The touring Indian team will play three 'Test' and as many One-Day 
Test paceman Aaqib Javed was appointed as the captain of the team 
while Test discarded middle-order batsman Basit Ali was named his 
The squad includes slogger Shahid Afridi, opener Salim Elahi  
middle-order batsman Hasan Raza and leg-spinner Muhammad  Husain. 
Humayun Farhat who had displayed good performance in  the recently 
concluded Junior World Cup in South Africa is the wicketkeeper.
Former Test cricketer and a member of the PCB selection committee 
Shafique Ahmad "Papa" has been named as manager of the team.
The team for the remaining matches of the series will be announced 
before the start of each encounter.
Besides Aaqib Javed the other pacemen included in the team are 
Fazal-i-Akbar, Naeem Ashraf and Jafar Nazir.
The council meeting was chaired by the newly appointed PCB chairman 
Khalid Mahmood which was his first after assuming the new 
assignment. The meeting lasted about three hours and held detailed 
discussion before giving approval to the team which had been 
finalised by national selection committee headed by Salim Altaf on 

Asian Snooker Tour begins today
Sports Reporter

KARACHI, Feb 8: After the four leg of the Asian Snooker Tour got 
under way in China recently, the Red & White Asian tour has now 
moved to these shores for the second leg which will be played at the 
Beach Luxury Hotel, a picturesque resort adorned with palm trees 
facing the Arabian Sea.
This tournament helps the Asian nations to enter the exclusive world 
professional circuit and two players after the four leg Asian tour 
will be allowed to join 96 players in the world professional snooker 
ranking that would earn each cueist a sum of U.S. Dollars 10,000 in 
appearance money.
All in all 18 players representing seven countries are in contention 
in this tournament along with two representatives from the World 
Professional Billiard and Snooker Association (WPBSA), and four from 
the Asian Billiard and Snooker Federation (ABSF).
Twenty-four players will be seen in action for the next seven days 
and six players each will be divided into four pools.
India, China, Malaysia, Singapore and Hong Kong have been allowed to 
field two players each with Sri Lanka having a lone representative.
Pakistan has been allowed to field eight of their top cueists but in 
case India fails to send their second player Rafat Habib, the host 
nation will then get an additional ninth berth which will go to the 
dashing Amit Parwani, who is on stand by.
India's top snooker player, former world and Asian champion Yasin 
Merchant is already in the city is top seeded in Pool C and will 
represent WPBSA.
Pakistan's top star, former world amateur champion Mohammad Yousuf, 
is top seeded in Pool A and will be representing ABSF, as he reached 
the quarter-finals in the last Asian championship held in Dubai.
Aspi Mavalvala, Honorary Secretary, Pakistan Billiard and Snooker 
Association (PBSA), has been appointed as the Tournament Director by 
the world professional body WPBSA, the first Asian to be appointed 
as a Tournament Director in this competition.
It may be mentioned that Aspi is also the Tournament Director of the 
Asian Billiard and Snooker Federation (ABSF).
The tournament is sponsored by the Lakson Tobacco Company, WPBSA and 
the Pakistan Billiard and Snooker Association (PBSA).
After the league rounds, the top two players in each pool will 
qualify for the quarter-finals. The finalists of the Pakistan leg of 
the Asian tour will play in the last play-off leg of the tour to be 
held sometime in May after the conclusion of the third leg to be 
played in March in Thailand.
All the pool, matches will consist of seven frames. The quarter-
finals and the semi-finals will be the best of nine frames, while 
the final will cueist of 15 frames.
Following are the players:
POOL A: Mohammad Yousuf (ABSF), Au Chi Wai (China Hong Kong), Keith 
Boon (ABSF), Mohammad Shafiq (Pakistan), Ku Lye Hock (Malaysia) and 
Hasimu Tuersun (China).
POOL B: Paul Fung (WPBSA), Ricky Chew (Singapore), Susantha Boteju 
(Sri Lanka), Farhan Mirza (Pakistan), John Chun Tu Fung (China Hong 
Kong), Vishan Gir (Pakistan).
Pool C: Yasin Merchant (WPBSA), Saleh Mohammad (Pakistan), Rafat 
Habib (ABSF) or Amit Perwani (Pakistan), Pang Wei Guo (China), 
Shameel Shah (Pakistan) and Jimmy Teo (Malaysia).
POOL D: Guo Hua (China), Naveen Perwani (Pakistan), Atiq Latif Bux 
(Pakistan), Anurat Wongjan (ABSF), Mohammad Mustafa (Pakistan) and 
Bernard Tey (Singapore).
The tournament commences on Monday, Feb 9 with six matches to be 
played at 10.00 a.m. The next six will be played at 1.00 p.m., 
followed by the next six at 4.00 p.m. with the last six matches 
beginning at 7.00 p.m.
Entrance to the matches will be free.

Olympian Tahir Zaman to play as centre-half 
Walter Fernandez

KARACHI, Feb 7: The strength of the National hockey camp has risen 
to 39 out of the 40 probables selected for training for the upcoming 
eight-match Test series against India.
Former Pakistan captain and inside-left Shahbaz Ahmed alongwith 
Olympian left back Naveed Alam, Ali Raza, Imran Yousuf, Wasim Ahmed, 
Irfan Mahmood, Atif Bashir, Mohammad Sarwar and Farooq Ahmed 
reported at the Hockey Club of Pakistan (HCP) Stadium here on Friday 
The only notable absentee is Olympian inside-left Mohammad Shahbaz 
Junior. However, Camp Commandant, former Olympian Islahuddin said 
Shahbaz Junior telephoned him last night and has requested for 
another day's leave because his father is seriously ill.
The Camp Commandant said that he has included Adviser to the 
Pakistan Hockey Federation (PHF), former Olympian Abdul Waheed Khan, 
Member of the PHF Selection Committee, Hanif Khan and former 
international Ghayasuddin,in his 'Think-Tank' with immediate effect.
Islahuddin added that he has also decided to appoint another two 
coaches in addition to former Olympian Ayaz Mahmood for specialised 
training in the not too distant future.
The former Pakistan Captain said that henceforth Olympian inside-
right Tahir Zaman will play as a regular centre-half and that he is 
giving special attention to the player to adapt to his new role.
Another plan on the drawing board is to make the entire forwardline 
versatile in all five positions to meet the demands of modern 
It was also noticed during today's practice matches amongst teams 
drawn from the clutch of camp probables, that powerful free hits and 
aerial balls except inside the striking zone has been eliminated.
In its stead, pushes have been introduced for the sole purpose of 
playing possession hockey. The idea behind the scheme is to avoid 
losing the ball with inaccurate hits.

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