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DAWN WIRE SERVICE
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Week Ending : 16 May 1998 Issue : 04/19
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Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS
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NATIONAL NEWS
Pakistan not to make hasty decision
All aspects of N-test evaluated
Blasphemy law: Christians, SSP & others hold demos
Supreme Court strikes down 12 ATA clauses
Belgium offers to sell 24 Mirage5 fighters Sports
Mass Transit project goes to cold storage
Govt warns oil dealers against raising prices
CCI lays emphasis on hydel power production
Traders observe strike in Faisalabad
Balochistan seeks due share in Indus water
SC returns MQM petition
Benazir vows to fight on people's side
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BUSINESS & ECONOMY
IMF seeks CBR help for physical inspection
No accord on power rates without LHC permission
All bank branches to accept utility bills
$2.5-3bn aid expected in next fiscal, says Sartaj
82.21pc collection brings NWFP near target
Bourses asked to resolve investors' problems
Notices to IPPs for one-to-one meeting
$5.7 billion foreign aid required in 1998-99
Benefits of tax incentives to exporters reviewed
Rs355bn revenue expected next year
CBR to issue 'error-free' tax defaulters' list
Stocks break bearish spell, recover 14 points
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EDITORIALS & FEATURES
Storming of the Supreme Court - 5 Ardeshir Cowasjee
A plea for sanity Irfan Husain
India's military build-up Israrul Haq
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SPORTS
Over 300 to compete in All-Pakistan badminton
Lincou beats Mansoor to bag Pakistan squash title
Punjab gears up to hold National Games in Lahore
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NATIONAL NEWS
980515
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Pakistan not to make hasty decision
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Bureau Report
ISLAMABAD, May 14: The federal cabinet held a special session here
on Thursday on the implications of India's nuclear tests and
decided to first gauge the international reaction against New Delhi
before responding to any similar experiment.
Informed sources told Dawn that Prime Minister Nawaz Sharif set up
a four-member committee to look into all aspects for dealing with
the issue.
The committee will be headed by Foreign Minister Gohar Ayub. Other
members will be Kashmir Affairs Minister Lt-Gen (retd) Majeed
Malik, Information Minister Mushahid Hussain Syed and Religious
Affairs Minister Raja Zafarul Haq.
Immediately after the meeting, the committee began deliberations
with the foreign ministry. The cabinet also discussed the
possibility of convening a special session of both houses of the
parliament.
Sources said all ministers made emotional speeches and most of them
favoured a nuclear test. They said Pakistan should not trust its so
called western allies any longer and manufacture nuclear devices.
The prime minister told the cabinet that tough international
sanctions were expected to be slapped on India for having conducted
five nuclear tests. In case, he pointed out, the international
community failed to fulfil its obligations for imposing what he
termed "severest" sanctions against India, Pakistan might exercise
its right to conduct nuclear tests for ensuring security.
In this regard, sources said the cabinet also decided to keenly
observe the proceedings and outcome of the meeting of the countries
of G-8 at Birmingham (Britain) on Friday (May 15). "Japan has
called for taking up the issue of India's nuclear tests at the
Birmingham meeting", said a diplomat.
But he said it was doubtful that Britain would allow a discussion
over the issue.
Sources said the prime minister informed the cabinet about
Wednesday's deliberations of the defence committee of the cabinet
and assured them that national interests would be kept supreme
before taking any final decision.
He said Pakistan's enemies were well aware of the capabilities of
the country's scientists to conduct any nuclear test in the
shortest possible time.
The cabinet reviewed the serious threat to peace and security in
the region arising as a consequence of India's nuclear tests.
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980514
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All aspects of N-test evaluated
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Bureau Report
ISLAMABAD, May 13: The Defence Committee of the Cabinet (DCC) on
Wednesday evaluated threadbare all the aspects that may warrant
Pakistan to go for a nuclear test in the light of Indian nuclear
tests on Monday.
Prime Minister Nawaz Sharif chaired the meeting which was also
attended by the chiefs of armed forces and Dr Qadeer Khan, chief of
the Kahuta Reseach Laboratories.
Informed sources told Dawn that divergent views were expressed by
the participants whether or not to exercise the option of nuclear
test.
Sources said that defence authorities and Minister for Foreign
Affairs Gohar Ayub believed that Pakistan should reciprocate by
conducting a nuclear test of its own. But Minister for Finance
Senator Sartaj Aziz backed by couple of other members of the DCC
warned that in case Pakistan went for the extreme option, there
could be very harsh international reaction which in their opinion
may eventually deprive Pakistan of all foreign assistance.
Sources said that head of the Kahuta Research Laboratories (KRL) Dr
Qadeer Khan who for the first time attended the DCC meeting
apprised the participants about the "latest position" of the
country's peaceful nuclear programme. Nevertheless, he said he and
his colleagues were capable of meeting the challenge and conduct a
nuclear test as and when desired.
"The doctor says it is a question of hours and not days to get
everything arranged to conduct a more comprehensive nuclear test
than those of India which were tested during the last two days",
said a source.
The sources said Dr Qadeer told the DCC that he did not need any
additional equipment to come up to the expectation of the
government and the country to conduct a successful nuclear test.
However, the meeting decided to exercise restraints despite open
provocations by India. It said that Pakistan was a peaceful country
and wanted to remain peaceful. But it warned of serious
consequences if the international community specially the USA did
not play its due role in this behalf by getting all the necessary
sanctions imposed against India.
Sources said that Dr Qadeer would soon be briefing the civil and
military leadership about the latest situation by taking them to
"country's different nuclear installations".
"When they dispersed they were in a highly upbeat mood, with Prime
Minister Nawaz Sharif saying that our people have all the
capabilities to give a fitting reply to India," said a source.
A press release was issued by the government at the end of the
meeting which said that after comprehensively evaluating the
defence preparedness, the DCC meeting expressed satisfaction over
Pakistan's ability to respond effectively and adequately to the new
threats and challenges. The DCC was convened to take stock of the
situation arising from nuclear tests and nuclear weaponisation by
India.
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980516
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Blasphemy law: Christians, SSP & others hold demos
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Correspondent
RAWALPINDI, May 15: Tension gripped many areas in Rawalpindi when
Muslims and Christians on Friday staged separate demonstrations
simultaneously on the issue of blasphemy law, causing injuries to
several people and damage to government and private property.
Heavy contingents of the police resorted to teargas shelling and
baton-charge to disperse the protesters, and arrested some 60
Christians for damaging property and violating section 144, under
which all types of demonstrations and rallies had been banned on
Murree Road by the district administration.
Activists of the Sipah-i-Sahaba Pakistan (SSP) and the Jamiat Ahle
Sunnat Waljamaat also staged a peaceful demonstration at Fowara
Chowk and warned the government of dire consequences if it made any
amendment to the blasphemy law.
The Christians staged demonstrations at many places in the city,
including Lalkurti, Ariya Mohalla, Tariqabad, Iqbal Road, Committee
Chowk and DAV College Road and demanded the repeal of the blasphemy
law.
When the leaders of Christian community started their speeches,
some young Christian men came on the stage and said they had
gathered there for the protest not to hear the speeches dictated by
the district administration.
The organizers of the function asked those young Christians to
lodge their protest peacefully. However, the young people refused
to obey the orders of their elders and went on protest at Murree
Road.
The demonstrators, led by Sohail Ishtiaq and Dr David, were
carrying sticks, placards and banners inscribed with different
slogans. They were also raising slogans against the government and
termed the blasphemy law "black and blind law."
Earlier, the police present at Murree Road asked the protesters to
disperse peacefully and not to create any untoward incident. In the
meantime, the demonstrators pelted stones on the police party and
private cars, causing damage to several shops and private vehicles.
In retaliation, the police resorted to baton-charge and teargas
shelling to disperse the agitators, causing injuries to several of
them.
The reports of minor clashes between the Christians and the police
were received till the filing of the news as this seek and hide
between the police and protesters continued till dark.
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980516
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Supreme Court strikes down 12 ATA clauses
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Correspondent
ISLAMABAD, May 15: The supreme court on Friday declared 12
provisions of the anti-terrorism act (ATA) as invalid, and brought
special courts on a par with ordinary courts working within the
existing judicial system.
Among other things, the five-member bench in a unanimous short
order held that the power to law enforcement agencies to open fire
on suspicion of terrorism, and accepting of a confession before a
DSP as valid piece of evidence, were untenable and needed to be
suitably amended.
The court also directed the government to make an amendment in the
ATA to vest the appellate power in a high court instead of an
appellate tribunal. According to legal experts, after this decision
of the apex court those convicted under the ATA will also be able
to approach the supreme court after a high court.
The ATA was enacted in August last year and was described by the
opposition and human rights groups as an attempt by the government
to convert Pakistan into a police state. The then chief justice,
Justice Sajjad Ali Shah, had also opposed the legislation and had
advised the government not to create a parallel judicial system.
The bench directed the government to make amendments in ATA to
bring those sections in consonance with the constitution.
The ATA sections which were held to be invalid in their present
form were sections 5(2)(i), 10, 14, 19(10)(b), 24, 25, 26, 27, 28,
35, and 37.
The five-member bench consisted of Chief Justice Ajmal Mian,
Justice Saiduzzaman Siddiqui, Justice Irshad Hasan Khan, Justice
Raja Afrasiab Khan and Justice Bashir Jehangiri.
The court held that section 5(2)(1) of ATA was invalid to the
extent it authorized an officer of the police, armed forces or
civil armed forces charged with the duty of preventing terrorism,
to open fire or order the opening of fire against a person who in
his opinion was likely to commit a terrorist act.
It held that section 10 of ATA, which empowered the law enforcement
agencies to enter any premises for search, was invalid in its
present form. The SC ruled that before entering the premises
suspected to have material or records which could stir sectarian
violence, a police officer, armed forces or civil armed forces
personnel should record in writing reasons for search and serve on
the person or premises concerned a copy of such reasons before
conducting a search.
The SC further held that section 14 of the act that empowered the
executive to appoint a judge to a special court without specifying
his tenure, required to be amended to provide security of tenure in
consonance with the concept of independence of judiciary.
The court also ruled that section 19(10)(b), which provided for
trial of an accused in absentia on account of his misbehaviour in
the court, was violative of Article 10 of the constitution and thus
invalid.
The supreme court further held that section 24, which provided for
constitution of an appellate tribunal consisting of one or two
judges, was invalid as it militated against the independence of
judiciary.
Similarly, the court held that section 25 provided finality to the
judgment of an appellate tribunal and barring supreme court
jurisdiction in relation to ATA, negated independence of the
judiciary.
The supreme court ruled that Section 26, which made valid the
confession of an accused before a police officer not below the rank
of deputy superintendent of police, was violative of articles 13(b)
and 25 of the constitution. "Section 25 of the constitution
requires to be suitably amended by substituting the words 'by a
police officer not below the rank of a deputy superintendent of
police' by the words 'judicial magistrate'."
Section 27, which empowered an ATA judge or an appellate tribunal
to punish any "delinquent" officer for defective investigation, was
also declared invalid. The court held that it required to be
amended.
Section 28 of the ATA, empowering an appellate tribunal under ATA
to transfer any case from one special court to another for the
security of the witness and accused, was also held invalid.
The SC held that section 35, empowering the government to make
rules necessary for carrying out the process of ATA, was also
against the concept of the independence of judiciary and violative
of articles 175 and 203 of the constitution.
The court also held that section 27 of the ATA, which permitted an
ATA judge to convict for contempt of court, was also invalid in the
present form and needed to be amended suitably.
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980512
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Belgium offers to sell 24 Mirage5 fighters
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Ihtasham ul Haque
ISLAMABAD, May 11: Belgium has expressed willingness to sell 24
Mirage5 fighter aircraft to Pakistan at a very low price.
Informed sources told Dawn here on Monday that both Pakistan and
Belgium had decided to expand their military cooperation and that a
broad understanding had been reached during Prime Minister Nawaz
Sharif's recent visit to Belgium.
Sources said Belgium and Pakistan had discussed enhancement of
military cooperation at a breakfast meeting that took place between
Mr Nawaz Sharif and senior Belgian authorities. And as a first step
Belgium offered to sell 24 Mirage5 aircraft to Pakistan.
The price of all the 24 aircraft will be about six million dollars.
However, Prime Minister Nawaz Sharif was told that 2.5 million
dollars would be charged for the upgradation of "each aircraft".
Pakistan was assured that the upgradation would be done in
accordance with international standards.
The planes will then be at a par with those manufactured by France,
USA and Russia.
These 24 aircraft, sources said, had been declared surplus by the
Belgian government due to downsizing in the North Atlantic Treaty
Organisation (NATO).
The sources said some other military equipment was also declared
surplus by the authorities in Brussels and Pakistan had been
offered to purchase them.
"We had a very good trip to Brussels this time and both sides not
only decided to expand their economic ties but also agreed to
increase defence cooperation," said an official who toured with the
prime minister.
He said a new chapter in military cooperation could soon be opened
between Pakistan and Belgium.
Sources said Mr Nawaz Sharif would soon have a high-level meeting
with the three services chiefs to apprise them about the
possibilities of enhancing military cooperation with Belgium in the
light of his discussions in Brussels.
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980515
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Mass Transit project goes to cold storage
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Sarfaraz Ahmed
KARACHI, May 14: The Karachi Mass Transit Project (KMTP) has been
put in a cold storage as the Planning Commission has made no
allocation for the $586million project in the Public Sector
Development Programme (PSDP) for 1998-99.
According to sources, the PSDP has made a proposed allocation of
only Rs 625 million for the National Mass Transit Authority(NMTA)
for 1998-99 under the head of public sector organisations and these
funds would be exclusively used for the Lahore mass transit
project.
The NMTA is now dealing only with the Lahore mass transit project.
A memorandum of understanding signed by federal and Sindh
governments and executing agency Indus Mass Transit Company in
December for the Karachi mass transit project explicitly states
that the Sindh government had agreed to take charge of the
administration of the mass transit project "subject to enactment of
the KMTA by the provincial assembly".
The setting up of Karachi mass transport authority with an aim to
centralise transport system of city was made mandatory by a high-
level meeting in Islamabad in August.
The meeting, attended by officials of both federal and provincial
governments, besides others, had resolved that the Sindh government
set up a steering committee for the interim period (period prior to
the formation of the KMTA).
A meeting of ministry of communication on March 16 in Islamabad had
decided that the KMTP would be allocated an amount of $57.2million
(Rs 2.6 billion) for 1998-99. This matter was later approved by the
priorities committee following Sindh government's confirmation of
the allocation.
According to sources, the proposed allocation in the PSDP is meant
for the Lahore mass transit project for 1998-99 in which federal
government has a 20 per cent share as the size of the allocation is
not even one-fourth of the amount committed by the federal
government for the KMTP in March.
As far as the Sindh government is concerned, the chief minister has
yet to give approval to the summaries pertaining to the setting up
of Karachi Metropolitan Transport Authority and a steering
committee comprising, among others, federal and provincial
government officials to clear the backlog for achieving a financial
close by July.
"It appears that the Punjab chief minister is taking great pains
and demonstrating leadership to have the Lahore mass transit on
ground as compared to the Sindh chief minister who is finding no
time for the KMPT," the sources said.
The sources added that due the complacency of the Sindh chief
minister the KMTP was totally ignored in the PSDP for the 1998- 99.
The KMTA, which has been given an initial task of heading the
$586million Karachi Mass Transit Project, will later devise
mechanisms to take over the charge of all transport activities in
the city which, at present, are under the control of regional
transport authorities and provincial transport department.
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980510
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Govt warns oil dealers against raising prices
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Bureau Report
ISLAMABAD, May 9: A spokesman for the Ministry of Petroleum said on
Friday night that the government would not allow oil dealers to
raise prices at their whim.
The spokesman said this after a high-level meeting of the ministry
of petroleum here.
He said under the constitution, only the Federal Ministry had a
right to determine the prices of petroleum products.
If an organization arrogated to itself this power, the government
would not hesitate to take action. He said the Ministry of
Petroleum and Natural Resources was conversant with the problems of
petroleum dealers, contractors and other people affiliated with
this sector and had sympathies with them but it was essential that
for the resolution of the problems, proper way should be adopted.
He said the demand for raise in commission by petroleum dealers
could be considered only until the unilateral and unlawful service
charges were not withdrawn.
The Press release said on the one hand, the ministry would ensure
that after the withdrawal of service charges already imposed,
immediate and positive measures be taken to resolve genuine demands
of the dealers.
On the other hand, the notification added, if the service charges
by the dealers were not withdrawn, the government would be
constrained to take all those measures which would do away with
this unlawful step.
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980510
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CCI lays emphasis on hydel power production
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Bureau Report
ISLAMABAD, May 9: The Council of Common Interests (CCI) on Saturday
laid stress on hydel power generation to remove the growing
financial difficulties of the government.
A special meeting of the CCI was held here under the chairmanship
of Prime Minister Nawaz Sharif and its entire thrust was on the
generation of hydel power.
"The CCI today decided to go for the hydel power generation that is
less expensive and can adequately look after all the power
requirements of the country," said the Minister for Finance Senator
Sartaj Aziz.
He told Dawn that the CCI had been informed about the new hydel
policy which was ready and would amply cover the hydel power
generation. "We have decided to generate cheap electricity compared
to the Independent Power Projects (IPPs), which are generating
thermal power and are charging high tariffs," the finance minister
said.
Responding to a question, he said the issue of the distribution of
water among the provinces had also been discussed in the light of
water accord. "The provinces have asked for more funds to develop
their water resources," he added.
Mr Aziz denied that differences had emerged among the provinces
over the resource formula and that they had complained about less
funding.
He said the prime minister had assured the provinces that they
would get enough funds to undertake their development programmes
during the next financial year.
Informed sources said the CCI meeting had been convened to discuss
the construction of the controversial Kalabagh dam for which the
World Bank was still ready to offer about $9 billion. The prime
minister, the sources said, had stressed the need for early
construction of the Kalabagh dam so that the shortage of
electricity could be removed by spending less funds compared to
thermal power.
About the World Bank financial support, its Vice President for
South Asian region Mieko Nishimizu, who was currently visiting
Pakistan, has reportedly assured the authorities of all possible
financial support for hydel power projects, including the Kalabagh
dam.
However, the sources said NWFP Chief Minister Mehtab Abbasi and
Sindh Chief Minister Liaquat Jatoi had expressed their reservations
about the construction of the Kalabagh dam and expressed
apprehensions that the issue could spark serious tension in their
provinces.
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980512
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Traders observe strike in Faisalabad
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Correspondent
FAISALABAD, May 11: A complete shutter-down strike was observed
here on Monday on the call of the Anjuman-i-Tajiran, Faisalabad,
and local religious organizations to protest against the
desecration of holy verses allegedly by a Christian youth.
The city life has come to a standstill for the last four days due
to tension which erupted after the suicide by Bishop Dr John
Joseph, and desecration of holy verses by a Christian youth on
Friday last when the Christians took out rallies against the
blasphemy laws.
All shopping centres in the city remained closed. Even mohalla
shops did not open as people were seen running from pillar to post
for purchase of daily-use items.
Protesters attacked vehicles plying on roads with hockey sticks
which confined the people to their houses.
Due to heavy tear gas shelling and baton-charge by police in seven
city areas to disperse unruly mobs, about 13 people and two
policemen received minor injuries.
On Sunday night and Monday morning, in almost all mosques of the
city, religious leaders made announcements urging people to hold
demonstrations and take out processions from their localities and
assemble at the Clock Tower intersection of the city to express
their resentment over the sacrilege.
Despite picketing by police commandos, reserve forces and jawans of
the Frontier and Punjab Constabulary on major and interior roads of
the city, at least 15 processions were brought out by the youth.
The processionists were carrying sticks, hockeys, iron rods and
placards.
A group of the youths also attacked the Christian Town on Narwala
Road and pelted stones on the houses and shops of the Christians
but a heavy police contingent dispersed them.
Meanwhile, police arrested 11 youngsters during the hide and seek
between the police and people. However, the arrested persons were
got released on the intervention of local leaders of the traders
and religious organizations.
A group of angry youth here on Monday attacked the house of Ranjha
Masih, who allegedly had desecrated the "Kalima" on last Friday,
but luckily the inmates of the house were not present there.
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980511
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Balochistan seeks due share in Indus water
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Correspondent
QUETTA, May 10: The Balochistan government on Sunday demanded of
the federal government its legitimate share in the Indus water
through the proposed Katchi canal.
Clarifying news reports about the meeting of the Council of Common
Interests, a spokesman for the Chief Minister House said that the
federal government should implement the Water Apportionment Accord
in its totality among the four provinces.
The spokesman said Balochistan government at the CCI meeting had
taken the stand that the Kalabagh dam had become a political issue
rather than a technical problem as reported.
He urged the federal government for redressing the grievances of
Sindh and NWFP by taking their political leaders and provincial
governments into confidence and finding an amicable solution to the
Kalabagh dam issue.
He said that the Balochistan government had made it clear at the
CCI meeting that its assembly along with that of Sindh and NWFP
assemblies had passed a resolution against the construction of
Kalabagh dam.
The spokesman called for providing opportunities to the chief
ministers and provincial governments of the NWFP and Sindh to seek
redressal of their problems and take political leaders and
assemblies of these provinces into confidence before taking a final
decision in this regard.
The spokesman called for mutual respect for the constitutional
rights of all the provinces by adopting a non-discriminatory
attitude and recognising the legitimate rights of other provinces
so that people of all the provinces could join the national
mainstream.
He said, "only in this way we can prepare and implement the
development plans of national importance and receive big ovation of
people throughout the country."
He said people be allowed to demonstrate their will without any
reservation for the development of the country using their
resources and technical knowledge in this regard.
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980514
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SC returns MQM petition
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Correspondent
ISLAMABAD, May 13: The supreme court on Wednesday returned the
petition of Senator Aftab Shaikh of Muttahida Qaumi Movement (MQM)
asking the apex court to direct the Sindh advocate general to
implead Mr Altaf Hussain as "necessary party" in the government
appeal in Major Kaleem case.
The petition was returned on the ground that according to supreme
court rules, the aggrieved person should himself file an
application in person or through advocate-on-record for impleading
him as party.
The SC office was of the view that there was no need for invoking
the original jurisdiction of the apex court and if Altaf Hussain
wanted to become a party he should file an application for this
purpose.
Shaikh Aftab Hussain had stated that the government of Sindh, which
had filed an appeal in the supreme court impugning the Sindh High
Court judgment in Major Kaleem case, had excluded the name of MQM
chief from the list of respondents to give an impression that Mr
Altaf Hussain was in league with the government.
The petitioner said Altaf Hussain was willing to face trial along
with the co-accused, and he should be treated like any other
accused.
He had asked the supreme court to direct the Sindh government to
implead Mr Altaf Hussain as a party in the Major Kaleem case.
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980511
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Benazir vows to fight on people's side
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Nasir Malick
LONDON, May 10: Opposition leader Benazir Bhutto said on Sunday
that she was being punished for pursuing the Ghauri missile project
and strengthening Pakistan's security.
"I would not have been facing this punishment (of media trial and
cooked-up cases) had I not carried out the Ghauri missile project
for strengthening the country's security," she told reporters at a
news conference in a London hotel on Sunday.
"My father (Zulfikar Ali Bhutto) gave the nuclear programme to the
country and the punishment he received for that is well-known to
the people of Pakistan," she said while indirectly saying that the
former prime minister had been sent to the gallows at the instance
of the superpower for pursuing the nuclear programme.
"Now I am facing the consequences of giving Pakistan Ghauri missile
and strengthening its security," she said referring to the witch-
hunt carried out against her by the government at national and
international levels.
She said the government was even "misusing" the international
agreements on narcotics trafficking by seeking the help of Britain
and Switzerland under this provision to collect evidence against
her jailed husband Asif Ali Zardari.
She said the government had so far spent $15 million on the media
trial against her family and added that this media trial was a part
of the "punishment" for carrying out the Ghauri missile project.
She said the government had been feeding the statements of former
drug traffickers, who had been extradited by the PPP government to
the US after fulfilling all legal formalities, to the international
and national media. "What value these statements carry which are
given by those who were extradited by the PPP government?" she
asked.
Benazir Bhutto also said she had been told that another such media
attack would be launched against her by weekly The Times magazine.
"My reports are that the government has provided the magazine with
the statements of these drug traffickers who were extradited to the
United States by the PPP government."
Ms Bhutto told reporters she was being advised not to return to the
country as she would be arrested by the government but declared: "I
will be going back, no matter what happens to me because I know he
(Nawaz Sharif) is anti-people and systematically destroying the
democratic institutions in the country."
She said she would return to the country to stand on the side of
the people who were facing a civilian martial law in the country.
She said she would not stay away from the country at a time when
judiciary was being attacked, the press freedom was being
suppressed, the public-sector labour was being made redundant,
rights of minorities were being suppressed, religious freedom was
under threat and there was no security of lives in the country.
"We are to defend the values like the freedom of press, an
impartial bureaucracy, security of life and rights of women and
minorities and I will definitely go back."
She said the government had failed to bring even a single case of
corruption against her since it came to power. "Now they are using
the international agreements on narcotics against us and sought
help of Britain and Switzerland under these laws. By using
international narcotics agreements the government has in fact
accepted its defeat."
She said she had informed the people of Pakistan against the
conspiracy that was being hatched against her when she had been the
prime minister and her brother was murdered. Instead of arresting
the murderers, my own husband was involved in the murder case, she
recalled.
===================================================================
BUSINESS & ECONOMY
980516
-------------------------------------------------------------------
IMF seeks CBR help for physical inspection
-------------------------------------------------------------------
Ikram Hoti
ISLAMABAD, May 15: The International Monetary Fund appraisal team
has asked the Central Board of Revenue to assist in launching a
physical inspection of the taxpaying-capacity in Pakistan.
The proposal includes visits by IMF officials of the business
locations and shops, banks and other finance/trade related
institutions.
The request from the fund team came after a scrutiny of records of
collection of sales tax during the last 10 months of the current
financial year.
The team is conducting scrutiny of records of all the four tax-
heads; sales tax, customs duty, income tax and central excise duty
which will continue till May 19.
On Friday, the team started looking into the ledgers of income tax,
at the Central Board of Revenue.
The fund team members, Juan Paul Bodin, Michael Keen and Juan Toro
have so far been scanning the records of sales tax with a focus on
methods of implementation of the tax after its rate being reduced
to 12.5 per cent, from 21, 18 and 15 per cent in the federal budget
1997-98.
Putting queries to a large number of CBR officials about the causes
of failure in collecting the sales tax as per the current year's
target, they are reported to have found the answers
"unsatisfactory", as one source told Dawn.
The team members communicated their agenda to the CBR officials
explaining that they would go on a physical check of factories,
shops, banks and other places if they were not satisfied with the
standard of record keeping on tax collection by the CBR.
Some CBR officials said the fund team is "actually not expressing
any confidence in us". According to some other officials, the fund
consultants have a long experience in dealing with the Pakistani
tax collecting machinery and have been finding most of the figures
on collection and methods of implementing the tax as "incorrect,
inflated and misleading".
The team members planning to visit shops are reported to have
selected for sample shops with their tax sheets, to asses whether
they have been depositing the due amount of ST over the past some
months.
They have also focussed on the figures of tax deposit under the
Traders' Enrolment Certificates and have been asking questions to
determine as to what kind of response the government had expected
from this scheme, imposed in lieu of the fund-backed retail tax and
the actual deposit of tax under TECs.
To launch a physical survey of the shops to see whether their
sales, as per the category they had got themselves enrolled for,
were in accordance with the turnover declared. The CBR is reported
to have made preparations for such a survey.
The survey is part of the study of the fulfilment of commitments
made by the present government, for release of next tranche from
the Extended Fund Facility (EFF).
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980514
-------------------------------------------------------------------
No accord on power rates without LHC permission
-------------------------------------------------------------------
Shujaat Ali Khan
LAHORE, May 13: The Lahore High Court has barred the federal
government or its Private Power Infrastructure Board from entering
into any new agreement with the Independent Power Producers (IPPs)
pending the petitions against exorbitant power tariffs without the
court's permission.
Justice Ihsanul Haq Chaudhry, who is hearing the petitions filed by
the WAPDA Hydro-electric Union and a public interest litigant,
allowed two IPPs, Hubco and Kapco, to file written statements
within two days. The extension was not opposed by the petitioners'
counsel, Advocates Maqbool Sadiq and Shakeelur Rehman Khan.
The restraint order was passed on a miscellaneous application filed
by the petitioners that the federal ministry of water and power and
WAPDA have failed to file written statements in reply to their
petitions despite a court order of January 27, 1998. The delay is
due to government efforts for out-of-court settlement that would
endorse the original agreements with minor adjustments here and
there but without any substantial relief to the consumer. Advocate
Maqbool Sadiq said the government is bound to fix power electricity
rates in accordance with the Supreme Court judgment in the 1997
case of M/s Gadoon Textiles versus WAPDA.
The judgment declared that utility rates should be determined in
consultation with public consumer representatives and reasonable
profit should be charged after calculating the maintenance and
production costs.
The counsel said the total demand for electricity in the country
stood at 7,800 megawatts against a total thermal-hydel generation
capacity of 9,100MW. In fact, WAPDA has to curtail its own
generation, which costs much less, to accommodate the IPP supply,
which it must in any case pay for under the power purchase
agreements (PPAs).
The court expressed its surprise on how the government could agree
to such stipulations. It fixed May 18 as the next date of hearing.
However, the petitions may be referred to a larger bench
recommended to hear the petition against Hubco power tariff rate,
which is allegedly higher than that of all the other IPPs. The
bench is likely to comprise both Justice Ihsanul Haq Chaudhry and
Justice Malik Mohammad Qayyum.
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980516
-------------------------------------------------------------------
All bank branches to accept utility bills
-------------------------------------------------------------------
Reporter
KARACHI, May 15: All the branches of five major local banks across
the country will accept utility bills from 9:00 a.m till 5:00 p.m
with one hour lunch break from 1:00-2:00 p.m. At present some
selected branches of the five major banks accept utility billsand
majority of them deny the facility after the lunch break.
A decision to this effect was taken at a high level meeting held at
the State Bank office here.
Presided over by the chairman of divisional Khidmat Committee, MNA
Mian Ejaz Shaffi the meeting was attended by senior officials of
the State Bank and representatives of five major banks and utility
companies.
"The decision will take effect immediately," Shaffi told Dawn on
telephone. He said the State Bank authorities had assured to issue
instructions in this regard to the five major banks on Saturday.
The five banks are (i) National Bank (ii) Habib Bank (iii) United
Bank (iv) Allied Bank and (v) Muslim Commercial Bank.
He said it was agreed that Khidmat committees would oversee the
process of utility bills collection at the branch level. "If the
committees spot any irregularity they will report it to the State
Bank...the State Bank will send its inspectors to verify the
complaints and take action."
He said the banks were warned not to deviate from the new timings
set for bills collection and refrain from changing the schedule on
their own.
Shaffi said it was also agreed that the new system will be allowed
to run for three months before making any changes. "If need be we
would ask the banksafter three monthsto keep their branches open
for bills collection even on Sundays."
A source privy to the meeting said the representatives of the banks
were of the view that the bills collection charges were below the
cost. At present banks charge Rs 2 on each bills.
The source said the chairman of the Khidmat committee told the
bankers since every bank handled three to four types of utility
bills the total bills collection charges came to Rs 6-8 in case of
each bank which was not bad. All the five major banks invariably
accept at least four utility billselectricity bills, water bills,
gas bills and telephone bills. Shaffi, however, asked the bankers
to submit a detailed working showing their cost of bills
collection.
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980514
-------------------------------------------------------------------
$2.5-3bn aid expected in next fiscal, says Sartaj
-------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, May 13: Minister for Finance Senator Sartaj Aziz said
here on Wednesday that Pakistan has lined up over 5 billion dollar
foreign assistance because of effectively implementing economic
reforms programme in Pakistan during the last one year.
"Foreign commitments worth 3 billion dollars have been made for the
current financial year, while 2 billion dollars are being offered
to us for Social Action Programme (SAP), he further stated.
Speaking at a news conference after the end of the 2-day meeting of
the Pakistan Development Forum (PDF), he said that the government
has received a very encouraging response from the donors community
to continue implementing the structural reform programme.
Deputy Chairman Planning Commission Dr Hafeez Pasha, who was also
present on the occasion told a reporter that funding for SAP has
adequately been arranged. "Funds worth 2 billion dollars have been
managed from the donors out of 10 billion dollar SAP", he said.
The minister for finance said that the government expected to have
2.5 to 3 billion dollar foreign assistance during the next
financial year. He said that the World bank has increased its
volume of assistance from 600 to 850 million dollar annually.
Responding to a question, Aziz said that the PDF, previously known
as Aid to Pakistan Consortium has stopped holding pledging session.
He said that a 7 billion dollar aid pipeline, built over the years,
was being used for having annual assistance from the donors.
He said that the PDF meeting, which was held for the first time in
Pakistan, has provided an opportunity to have more closer inter-
action with the donor community. He pointed out that the issues
like inflation, budget deficit, current account deficit and
development programmes were extensively discussed during the
meeting.
"The meeting believed that more steps are needed to promote Foreign
Direct Investment (FDI), increase exports and revenues of the
country", the finance minister pointed out.
The issue of tax reforms as well as restructuring of the WAPDA were
also discussed with donors which are impinging the idea of
improving the concept of good governance. He said that the donors
also called for reducing non-development expenditure and allocating
more funds for health and education.
To a question, Aziz said that some participants also called for
improving law and order situation. "And we have told them all
necessary measures have been taken to improve law and order
situation".
The donors, he said, appreciated various measures taken by the
government to help the private sector.
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980515
-------------------------------------------------------------------
82.21pc collection brings NWFP near target
-------------------------------------------------------------------
Intikhab Amir
PESHAWAR, May 14: The Customs and Central Excise Collectorate,
Peshawar is expecting to achieve Rs7800 million central excise duty
(CED) target for the 1997-98 fiscal having, so far, collected 82.21
per cent of the stipulated amount in the first 10 months.
The collections on account of CED stood at Rs6412.66 million on
April 30, last, against the target of Rs 7800 million.
Though slightly missing the target (by -1.34 per cent) of Rs6500
million, internally fixed by the collectorate's authorities for the
first ten months of the current financial year, the recoveries made
during that period recorded significant improvement (41.44 per
cent) as compared to CED collections made in the corresponding
period of the last financial year.
At the close of April, 1997, CED collections stood at Rs4533.74
million. The overall collections at the end of the financial year
on June 30, 1997 amounted to Rs 5913.89 million.
The improvement in collections, this time round, is due mainly to
sharp increase in CED collected on cigarettes industry which rose
by 66.75 per cent. During the first 10 months of this year CED on
cigarettes stood at Rs2839.16 million, whereas, in the
corresponding period during the last financial year recoveries had
ended up at Rs1697.22 million.
The CED collected on cigarettes till April, this year, recorded an
increase of 20.47 per cent as compared to the target internally set
by the collectorate for the first ten months of the current
financial year. The authorities had fixed a target of Rs2349.29
million under this head till April, 1998. With a collection of
Rs2830.16 million at the end of the 10th month of the current
financial year. The collectorate also achieved the target of
Rs2819.15 million set for it, by the CBR, for the current fiscal on
account of CED on cigarettes.
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980515
-------------------------------------------------------------------
Bourses asked to resolve investors' problems
-------------------------------------------------------------------
Muhammad Ilyas
ISLAMABAD, May 14: The Chairman, Corporate Law Authority, Shamim
Ahmed Khan, while presiding over a meeting of the Coordination
Committee of CLA and stock exchanges here on Thursday, directed the
managements of all the three bourses to resolve the growing
complaints of investors against the brokers.
Besides senior officials of CLA, the meeting was attended by Yasin
Lakhani, Khawaja Hamad Saeed and Farooq Zafar, Chairmen,
respectively, of the stock exchanges of Karachi, Lahore and
Islamabad as well as their newly appointed managing directors
(secretary, in the case of ISE).
Meeting after more than 16 months, the Coordination Committee
mainly reviewed the progress in implementing the capital sector
reforms under $250 million credit. These reforms have to be
implemented from July 1 next. It specifically appreciated the
induction of outside directors and appointment of professional
managing directors. The meeting also reviewed the impact of those
parts of the reforms package on the capital market that have been
implemented so far.
The items relevant to the ADB Capital Market Reforms and on the
agenda for review were, inter alia: Strengthening of various
departments of the stock exchanges; automation of trading;
corporisation of stock brokers; establishment of Members Protection
Fund; strengthening of defaulter & disciplinary procedures and
their enforcement; establishment of Investors Protection Fund by
the stock exchanges; and setting-up of National Clearing and
Settlement System.
Although, the meeting had a rather longish agenda comprising 15
items, some of these were discussed only cursorily, while others
were not even touched for want of time because the CLA Chairman was
called to a meeting with the finance minister. A senior CLA
official, however, contended that the meeting had been called
mainly for a tete-a-tete with the newly elected chairmen and MDs of
the bourses.
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980515
-------------------------------------------------------------------
Notices to IPPs for one-to-one meeting
-------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, May 14: The Ministry of Water and Power here on Thursday
decided to issue notices to Independent Power Producers (IPPs) for
a one-to-one meeting with them to get their power tariffs reduced.
Official sources told Dawn that the Minister for Water and Power,
Raja Nadir Pervaiz on Thursday signed a letter that sought to
immediately dispatch notices to the IPPs. These notices were being
issued to 9 IPPs which, according to Prime Minister Nawaz Sharif,
have assured to lower their tariffs.
However, sources said that these 9 IPPs have the generating
capacity of 100 to 120 mw. Some of them were operating or were to
operate on merely 10 to 20 mw. "Soon they will have these notices
with them", said an official who believed that one-to-one meeting
with every IPPs will start taking place next week.
But the high officials of the ministry of water and power, sources
said, were disturbed as no formula could have been finalized with
relatively big IPPs. Some said that the prime minister's address to
the nation was premature and should have been organized only when
things would have settled with the owners of the bigger IPPs.
Participants of the Pakistan Development Forum (PDF), which met
here on May 12 and 13, did not approve the government's measures to
deal with the IPPs. They have reportedly threatened to suspend
their economic assistance in case the IPPs were continued to be
chased by the officials of the Ehtesab (Accountability) Bureau.
Moreover, the meeting of the Ambassadors of Japan, USA, England and
Germany with Minister for Law and Justice Khalid Anwar on Tuesday
last proved very significant in which they adopted tough line
against the government. They reportedly called for halting
investigation against the IPPs. They said that it will only
undermine the government's efforts to boost foreign investment in
Pakistan.
Meanwhile, it was also learnt that although the government has held
detailed discussion with the PDF members over the issue of IPPs,
the minister for law and justice was likely to visit Washington in
the third week of this month to hold further talks with the
officials of the World Bank, IMF and the International Finance
Corporation (IFC) for getting power tariffs reduced by the IPPs.
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980512
-------------------------------------------------------------------
$5.7 billion foreign aid required in 1998-99
-------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, May 11: Pakistan needs a total of 5.7 billion dollar
foreign assistance in 1998-99 and it expects the commitments of 2.1
billion dollars including about 1.9 billion dollars from the
Pakistan Development Forum (PDF).
According to a document "Memorandum for the Pakistan Development
Forum 1998-99", prepared by the Planning Commission and obtained by
Dawn, the year 1998-99 is projected to close with a current account
deficit of 3031 million dollars. In addition, 1911 million dollar
dollars will be needed for amortization. "With the envisaged build
up of foreign exchange reserves of 816 million dollars, a total
foreign capital requirements for 1998-99 amount to 5758 million
dollars", said the document.
A 2-day PDF meeting starting from Tuesday will take into account
the aid request of the Pakistan government. Although it would not
be pledging session, still the Planning Commission prepared a
document to be discussed PDF, previously known as Aid to Pakistan
Consortium.
"Gross disbursements during 1998-99 are projected at 2.9 billion
dollars (exactly $2963 million) of which project aid disbursements
from the pipeline and fresh commitments will aggregate to 1,785
million dollars", the memorandum said.
Disbursement of non-project aid from the pipeline and fresh
commitments are projected at 1,176 million dollars which will
comprise 400 million dollars for food assistance and the remaining
776 million dollars for non-food aid under programme loan from the
Asian Development Bank, Japan Exim Bank and World Bank and other
commodity type assistance. Relief assistance for Afghan Refugees
has been projected at 2 million dollars.
Nevertheless diplomatic sources said that issues related to cut in
defence budget, Independent Power Producers (IPPs) and considerably
enhancing allocations for social sectors would, for the first time,
come up for detailed discussion. They said that macroeconomic
developments covering all the sectors of the economy were scheduled
to be debated in the PDF meeting.
Sources said that the issue of cut in defence budget will be
discussed in the light of a programme called as "Medium Term
Framework for Five Years" which was prepared by the World Bank. The
document calls for having good governance for eradicating
corruption, sectarian violence and terrorism. It further stressed
the need for removing unemployment, high population growth rate,
improving tax administration with GDP tax ratio of 13 per cent,
improving the allocations for public spending, reducing tax
evasion, levying General Sales Tax, imposing tax on agriculture
income, curtailing the discretionary powers, improving law and
order situation, protecting Social Action Programme (SAP) from any
budgetary cut and redoubling the efforts for the privatization
process.
Sources said that the PDF meeting will discuss the overall
performance of the Pakistani economy in the light of various
benchmarks set by the IMF. The meeting will be presided over by Ms
Mieko Nishimizue, Vice President of the World Bank. Minister for
Finance Sartaj Aziz will lead the Pakistan side. The meeting will
also be attended by high ranking delegates from 17 countries and 15
international agencies which are collaborating and assisting in its
development efforts.
A distinctive feature of the meeting is a special session on
business environment for the private sector which will specifically
take up issues relating to finance and capital market;
infrastructure and power; trade and industry. Over 40 chief
executives of companies and corporations will participate in the
session.
Discussing the outlook for 1998-99, the document of the Planning
Commission, which will come up for discussion by the members of the
PDF, said the government expected that the next financial year will
see further improvements in the trade accounts reflecting a higher
growth in exports than imports.
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980512
-------------------------------------------------------------------
Benefits of tax incentives to exporters reviewed
-------------------------------------------------------------------
Ikram Hoti
ISLAMABAD, May 11: The Export Board of commerce ministry reviewed
on Monday the performance of different relevant government agencies
in the follow-up of a report on benefits of the tax incentives
offered to exporters for the current trade year.
The meeting was told that a priority list of items was finalized
for sending up to the high-ups of all the relevant government
organizations.
These items are being deemed as largest exportable ones in view of
the tax incentives offered by the government and the openings in
the international market for them, in the recent months.
The meeting also reviewed the quantity wise export of non-cotton
items in the period between July 1997 and April 1998, and noted
with concern that 10 out of 28 of these export items showed a
marked decrease in terms of quantity and value, as against the
export of these items made in the same period, last financial year.
These items are rice, leather, textile manufacture, knitwear,
bedwear, readymade garments, synthetic textile fabrics, sports
goods, leather manufacture, and surgical and medical instruments.
The meeting took note of the fact that these figures might, by the
end of the current financial year, falsify the government claims of
having accomplished in the exports, in these sectors. The meeting
was offered to examine a report from most of these sectors,
indicating that the exports have been falling both in terms of
quantity and value, while the statistics submitted on these told a
different story, which needed rectification, to provide the
government with the sense of urgency to do something for turning
around the prevailing position.
The government set ambitious targets for exports for the new
financial year. The causes of this slide were analysed in the
backdrop of various measures adopted by the government.
Reports from various industrial and business chambers on export and
the indicators were examined which pointed out that the failures
were occurring due to high cost of production and complicated
procedure of export.
The meeting considered different ways and means to preempt the
additional factors feared to come and play their role in
discouraging exports, during the next few months. The idea of
creating a development bank for promoting exports and to
revolutionize the performance of the Export Promotion Bureau, also
came up for discussion, sources told Dawn.
The need was felt that the EPB should be directed to concentrate on
adding new items to the export list, beside ensuring products
identification, apart from performing as exclusively a regulatory
authority.
The meeting examined different proposals for maximizing the export
of value-added goods and discouraging the primary and semi-finished
goods.
It also examined the proposal for simplifying the procedure for
textile exports. A workable procedure concerning the refund of
sales tax in consultation with the representative organizations of
business and trade, was also discussed.
A review was also conducted on performance on recently communicated
instructions from the government of Pakistan to its missions
abroad, to activate them to help promote exports from Pakistan. It
was brought into the notice of the meeting that all the facilities
demanded by a number of missions in this regard, had been provided
for, but the situation did not improve.
The next meeting of the EPB to be scheduled shortly, will examine
the ways and means suggested for this purpose by different relevant
agencies, in the light of the demands made by exporters, during the
July-April period of the current financial year.
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980513
-------------------------------------------------------------------
Rs355bn revenue expected next year
-------------------------------------------------------------------
Raja Zulfikar
ISLAMABAD, May 12: The finance ministry is anticipating no more
than Rs355 billion of revenue next year against the revised target
of Rs305 billion for the current year.
However, undeterred by serious shortfalls in revenue collection
target during the current year, the government has reportedly asked
the finance ministry to prepare two strategies for fixing the
revenue targets for the next financial year at Rs 500 billion and
Rs375 billion respectively.
Sources said the government had asked the finance ministry for two
strategies in view of its decision to increase the size of the
annual development plan from the existing Rs90 billion to Rs120
billion and to reduce budget deficit.
The original revenue target for the current year was Rs327 billion
which was revised downward to Rs305 billion in the month of
December 1997 after the collection trends in the first two quarters
indicated that the original target was not achievable.
In the first three quarters, the collection came to about Rs200
billion with Rs105 billion still to be collected in the last
quarter.
The finance ministry, sources told Dawn, has attributed the
shortfall of Rs26 billion among other factors to a slow down in the
economic growth, reduction in imports, non-implementation of
certain budgetary measures and amnesty scheme.
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980516
-------------------------------------------------------------------
Stocks break bearish spell, recover 14 points
-------------------------------------------------------------------
By Our Staff Reporter
KARACHI, May 15: Stocks broke the protracted bearish spell on
Friday, caused by the Indian nuclear tests and power tariff issue,
as blue chips came in for strong short-covering at the lower levels
and finished a shade higher under the lead of massively battered
Hub-Power and PTCL.
After recovering over 20 points before the closing bell, the KSE
100-share index finally recovered about 14 points or Rs 1.478
billion in the market capitalization.
Incidentally, the market advance was led by energy sector as most
of them came in for strong support at the attractively lower
levels, apparently pointing to some positive development on the
tariff cut issue.
Some dealers said bulk of the support was based on speculative
thinking after the Lahore High Court stay in regard to cancellation
of power purchase agreement with Wak Power, Port Qasim-based plant.
Investors covered positions in Hub-Power and other foreign energy
shares on the perception that they too could benefit from the
Lahore High Court verdict, they added.
"The chief stimulant, which seems to have given the much-needed
psychological boost to the market, is rumours that Pakistan may
also denote nuclear device possibly by Sunday next,� analysts said.
They said the security fears might be allayed but the advent of
nuclear weapon race in the region has its own long-term
implications to which no one is paying heed.
However, in any case, a section of bargain-hunters and speculators
was back in the rings and made active covering purchases at the
attractively lower levels as "in their opinion there is no harm to
play on short-term basis in the pivotals.�
After having received massive battering during the last four
sessions, falling by over 130 points, the KSE 100-share index
managed to finish partially recovered at 1,426.16 as compared to
1,412.36 a day earlier, showing an increase of 13.80 points.
The market capitalization also recovered Rs 1.428 billion but
stayed below the Rs 400 billion mark at Rs 398 billion.
"But we don�t think that the market is out of woods as negative
external factors, which could make or mar its future outlook, are
very much there,� said a leading floor broker.
However, one thing is certain that it has absorbed shock of the
history after the Indian nuclear tests and there are "no fear of
its imminent collapse�, as predicted by some financial analysts
apparently reading it with the power tariff issue and its
implications for the foreign investors.
Shell Pakistan and Lever Brothers, which rose by Rs 4 to Rs 30, led
the list of gainers. Other good gainers included leading shares
such as Metropolitan Bank, Soneri Bank, Adamjee Insurance, Delta
Insurance, New Jubilee Insurance, Balochistan Wheels and Al-Ghazi
Tractors, which posted gains ranging from one rupee to Rs 3.
Prominent losers included leading shares, notably Fazal Cloth and
BOC Pakistan, falling by Rs 5.75 and Rs 10. They were followed by
Al-Faysal Bank, Pakistan Oilfields, Telecard, Pakistan Gum
Chemicals, Sindh Alkalis and Shezan International, which suffered
decline ranging from one rupee to Rs 5.
Trading volume fell to 70 million shares from the previous 142
million shares as gainers managed to force a modest edge over
losers at 66 to 45 with 50 shares holding on to the last levels.
Hub-Power came in for strong covering purchases, up Rs 1.15 at Rs
34.80 on 37 million shares, followed by PTCL, another market
leader, higher 35 paisa at Rs 28.50 on 26 million shares, ICI
Pakistan, up 45 paisa at Rs 15.35 on 4.269 million shares, Southern
Electric, higher 40 paisa at Rs 6.10 on 0.957 million shares, and
Dawood Leasing, lower 35 paisa at Rs 5.10 on 0.393 million shares.
Other actively traded shares were led by FFC-Jordan Fertilizer,
unchanged on 0.358 million shares, followed by Sui Southern, up 25
paisa on 0.248 million shares, KESC, firm 15 paisa on 0.170 million
shares, and Sui Northern, higher 35 paisa on 0.171 million shares.
DEFAULTING COMPANIES: Three shares came in for trading and ended
lower on 4,000 shares. The largest turnover of 2,000 shares was
noted in Bolan Casting, which suffered a fractional decline.
BOARD MEETINGS: Tritex Cotton, Premier Insurance, Bilal Fibre and
Shahtaj Textiles on May 19, 21, 22 and 25 respectively.
Back to the top
===================================================================
EDITORIALS & FEATURES
980510
-------------------------------------------------------------------
Storming of the Supreme Court - 5
-------------------------------------------------------------------
Ardeshir Cowasjee
ON April 4, the Bench presided over by Justice Nasir Aslam Zahid,
sitting with Justices Munawar Ahmad Mirza and Abdur Rahman Khan,
now inquiring into the pre-planned Storming of the Supreme Court by
parliamentarians, members and supporters of the PML on November 28,
1997 heard the statements of three witnesses.
Media-wizard who knows all the tricks of the political trade,
Hussain Haqqani, filed his affidavit, as did Altaf Hussain Bhatti
of Asas / Lashkar, and Aslam Butt of the Frontier Post.
Haqqani suggested that the November 28 video recordings of the
Supreme Court CCTV cameras, and those made by the various TV crews,
be shown on PTV, and members of the general public invited to
identify any recognizable individuals. This is in line with the
action taken by the Tribunal that inquired into Murtaza Bhutto's
murder, also presided over by Justice Nasir Aslam Zahid, which had
"published a notice in the newspapers that anyone in possession of
any information regarding the incident in question may send his
name and address and an affidavit to the Registrar of the
Tribunal...".
Brave Bhatti, shrugging off all 'inconveniences', filed his
affidavit, written in Urdu, relevant translated portions of which
read :
"I was an eye-witness to whatever happened outside and inside
Courtroom No.1 on November 28, 1997 and give this statement to
assist the apex court of the country in my capacity as a
responsible citizen.
"Whilst the Bench headed by Chief Justice Sajjad Ali Shah
comprising Justices Bashir Jehangiri, Mohammed Arif, Maimoon Kazi
and Munir A Shaikh, was hearing the contempt of court case against
the Prime Minister and other parliamentarians on November 27, 1997,
Zafar Ali Shah, MNA, Advocate of the Supreme Court rose and said
that the Chief Justice could not conduct the Court, as after the
judgment of the Quetta Bench he was no longer CJ. Minister Chaudhry
Nisar Ali Khan, and MNAs/MPAs Kabir Khan, Inamullah Niazi, Sardar
Naseem and Advisor to PM Mushtaq Tahirkheli also stood up in Court
in support of Zafar Ali Shah. The Muslim League crowd present also
heckled the CJ, and when he declared that the Quetta Bench decision
was null and void in law they shouted 'Chor , chor .'
"PML workers also demonstrated against the Chief Justice on
Constitution Avenue. That evening, government sources briefed
journalists that Justice Ajmal Mian will be sworn in as CJ the next
morning and CJ Sajjad Ali Shah will proceed on leave.
"On the morning of November 28, I read a prominent headline in the
'Daily Pakistan' announcing that the Muslim League was to
demonstrate its strength outside the Supreme Court that day. This
news story said that the PM and the CM Punjab had directed PML MPAs
to bring Muslim League workers to Islamabad, via the motorway, for
a show of strength. So, I left my home at 0700 hours and arrived by
wagon outside the Supreme Court at 0815. At that time, traffic was
flowing on Constitution Avenue and a few people had arrived outside
the SC. Police reserves had just started taking their positions.
The SSG Police group was led by Inspector Mehr Yar Mohammed. SHO
Secretariat Jamil Hashmi and SHO Bahra Kahu, Mussarat Khan were
also there with their men.
"At around 0830, people arrived in buses and wagons from the
direction of Punjab House. Muslim League office bearers from
Rawalpindi and Islamabad came with their workers. MSF, Nawaz Sharif
Force and PML Women's Wing were particularly active. Efforts were
made to get inside the SC. The gate was shut because entry was
restricted to holders of entry passes, but certain PML
parliamentarians were allowed entry without passes. Demonstrators
held banners and placards reading 'We respect the Court but Sajjad
Ali Shah is dishonest,' 'Jewish agent Sajjad Ali Shah,' 'Sajjad Ali
Shah na manzoor,' 'Justice demands that the Chief Justice be
dismissed.'
Retired Major Rashid Warraich, head of Hizbollah, was also present
and his group held up their own placards. Women standing next to
the main gate were singing 'Qadam barhao Nawaz Sharif, hum tumarhey
saath hein.'
"At 0900 serious slogan-mongering commenced. The workers who had
come from Lahore were led by Akhtar Rasool, MPA, and others, while
Rawalpindi workers were accompanied by MPAs Sardar Naseem, Advocate
Akhtar Mahmood, and Chaudhry Tanveer Khan. I know several of the
workers who were there, including Riaz Khan, Shakil Awan, Zahid
Qureshi, Babar Awan, Maqbool Ahmed, Mumtaz Ahmed, Farooq Khattak of
Zia Foundation, Ali Abbas and Liaquat Ali Khan. From the Women's
Wing in the forefront were Javedi Fatima, Nilofar Bakhtiar, Seema
Gilani, Tahira Shaukat, Naseem Ali and Mukhtar Begum. Prominent in
the hullabaloo were Shahbaz Goshi, Suleman Khan, Raja Hafiz,
Chaudhry Allah Ditta and Malik Shuja.
"At 0930 I entered Court No. 1 after showing my pass, and sat on
the press seats, with Khushnood Ali Khan, Rao Khalid, Wadood Qureshi,
Mushtaq Minhas, Nasir, Rashid Habib, and Zafar Shaikh.
Present in Court were MNAs Ejazul Haq, Khwaja Asif, Asfandyar Wali,
MPAs Ashfaq Sarwar, Raja Basharat, Chaudhry Tanveer Khan, Akhtar
Mahmood, Sardar Naseem, Senators Raja Aurangzeb and Saifur Rahman,
and other PML MNAs, MPAs and office bearers.
"In the course of the proceedings, Khwaja Asif, through his
counsel, sought permission from the Court to leave. As the Chief
Justice was about to show the video cassette [of the Assembly
session at which the alleged contempt took place] MPAs Sardar
Naseem, Ashfaq Sarwar, Akhtar Mahmood and Ali Afzal Jadoon also
left the Courtroom. Soon thereafter, a noise was heard from outside
and Fakhr Zaman, the reporter for Zaman , a Turkish publication,
entered the courtroom, panting, and shouted 'My Lord, the court has
been attacked. They will kill you. The Judges should protect
themselves.' The CJ remarked to S M Zafar, 'Thank you, Mr Zafar, we
are now adjourning the proceedings, but your clients will have to
bear the responsibility.'
"Soon after the Judges had left the courtroom a large crowd led by
Sardar Naseem [who had gone out shortly before] re-entered and
assaulted Fakhr Zaman. Some journalists intervened. Outside the
courtroom, I saw demonstrators swaggering around in different areas
of the building, carrying flags and placards. The ML workers were
shouting slogans : 'Sajjad kutta hai hai', 'Leghari kutta hai hai',
'Lotay judges na manzoor'. In the main hall of the Court Khwaja
Asif, Zafar Ali Shah, and some other ML leaders were telling the
workers to go back, but the main door of the building was shut.
When I looked out from the balcony of the first floor, hundreds of
demonstrators were shouting slogans inside the Supreme Court
grounds while police inside and outside the building stood as
silent spectators.
"I remained in the Court until 1200 hours gathering material for my
press report. I present herewith a copy of Asas of 29/11/97."
The attention of the Judges was drawn to the back page of the Asas
that carried the photograph of a huge banner, made to measure, tied
and displayed over half the full length of the front compound
railing of the Court, reading : "Istehkam-i- Pakistan ka dushman
Sajjad Ali Shah Pakistan Muslim League." (Enemy of the solidarity
of Pakistan, Sajjad Ali Shah - signed : PML).
The next hearing is on May 18. Another affidavit is being submitted
to the Court to be placed on record, to which the following have
been attached :
(a) A copy of letter dated November 28 1998 sent by CJ P Sajjad Ali
Shah to President Leghari, in which he relates details of the mob
attack that day.
(b) A copy of letter dated November 29, 1997, sent by President
Leghari to PM Nawaz Sharif, forwarding a copy of the CJP's letter,
in which he refers to : "...the disgraceful and premeditated mob
assault on the Supreme Court of Pakistan on 28th November ...".
(c) A copy of the Prime Minister's November 29, 1997 rejoinder to
the President's letter.
(c) A video cassette of the recording of President Leghari's
address to the press conference held on December 2, 1998 at which
he announced his resignation, and in which he made reference to the
November 28 storming and desecration of the SC by the "goons and
parliamentarians of the ruling party."
At the last hearing, it was requested that certain concerned
persons be summoned by the Court to give their statements. The
Court informed me that for this to be considered I should make an
application. This is being done, listing the following :
Former President of Pakistan Farooq Leghari; the then IGP,
Islamabad; concerned officer of the ISI; the then DIG Special
Branch, Islamabad; the then DG IB; Punjab CM Shahbaz Sharif; SAPM
Anwar Zahid; Senator Iqbal Haider ; Zahid Husain (Newsline and AP);
Fakhr Zaman (Turkish news agency Zaman); Khushnood Ali Khan
(Khabrain); Rashid Hijazi (Daily Pakistan); Faraz Hashmi (Dawn);
Aslam Khan (Internews); Zafar Shaikh (Nawa-i-Waqt); Muhammad Ismail
and Naveed Mairaj (Frontier Post).
The sooner the better that our honourable judges realize that the
people are but trying to help revive and rehabilitate the honour of
the Supreme Court.
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980516
-------------------------------------------------------------------
A plea for sanity
-------------------------------------------------------------------
Irfan Husain
IF the recent series of Indian nuclear tests prove anything, it is
that our leaders do not have a monopoly on criminal stupidity.
Indeed, Nawaz Sharif has been presented with a golden opportunity
to demonstrate maturity and restraint; qualities, I might add, that
have been notably lacking in the hysterical and hawkish
pronouncements of Foreign Minister Gohar Ayub and Dr A.Q. Khan.
Indeed, Benazir Bhutto has not been far behind in jingoism. There
is little doubt that Nawaz Sharif is under great pressure from his
own party, the opposition and the public to respond to the Indians
in kind.
However, he must desist from an ill-considered, knee-jerk reaction.
The arguments for dragging our nuclear device out from the basement
are obvious: we must show the world that we, too, are a nuclear
power; restraint will be seen as weakness; unless we test, our
nuclear deterrent will lose its credibility. Indeed, there are many
hawks in policy-making or opinion-forming positions who have been
arguing along these lines long before the Indian tests.
But if we weigh the pros and cons coolly and dispassionately, even
the most rabid hawk will see that there is much to be said for a
policy of restraint. Already, sanctions are being clamped on India
and despite the bravado emanating from New Delhi, once trade and
aid restrictions start to bite, even an economy as large as India's
will be severely affected. All IMF and World Bank assistance will
dry up; fresh foreign investment will be frozen because nobody will
want to put money in a country that is facing international
sanctions; and technology transfers will be sharply curtailed.
Bilateral aid from several countries has already been blocked.
True, India has a huge economy, but in an age where the world is
one large marketplace, nobody can survive on their own for very
long. And the timing of the tests was particularly bad, coming as
they did just before the G-8 meeting in Birmingham.
There is no doubt that India will dominate the agenda, and the most
powerful leaders of the industrialized world will hammer out a
joint strategy to ensure that India is made an example of, so that
other nuclear threshold states do not follow suit.
Apart from the financial and economic fallout, the political
repercussions of the Indian tests will be felt for a long time. For
starters, India can bid farewell to its dream of a permanent seat
on the UN Security Council. Next, after this crude demonstration of
power, all the countries in the region will now mistrust India more
than ever. Finally, the gradual improvement of ties with China a
process viewed with ill-concealed dismay by Islamabad has
probably come to a grinding halt.
But in strictly military terms, how have these tests changed the
balance between India and Pakistan? After all, India carried out
its first test in 1974, and has been known to have nuclear
capability ever since. Pakistan attained this status a decade or so
later. By conducting one or more tests now, we will gain very
little and lose far more. By exploding a device, Nawaz Sharif will
no doubt earn the applause of many, but will not add significantly
to our defensive or offensive capability.
Now let us look at the advantages that would accrue from a measured
policy of restraint. For a change, we, and not India, will occupy
the moral high ground. Internationally, Pakistan will be viewed as
a mature, responsible state, while Vajpayee's government is already
being seen for what it is: a dismal collection of irresponsible
warmongers.
This lofty position is no doubt unfamiliar territory to our policy-
makers, but there are a number of ways it can be exploited. For
one, the United States could be convinced of the clear threat we
face and the need to bolster our conventional defences if we choose
not to go the nuclear route. As an unstated price for not testing,
we would be in a strong bargaining position to have a major portion
of our foreign debt and/or interest written off. Since Pakistan and
India seem doomed to be locked in a zero-sum game in which one
side's gains translate into the other's losses, the latter's
isolation is to our advantage.
And what if we go ahead and detonate a nuclear device? The
international response would be swift and devastating. As it is,
our economy is tottering on the brink. A government spokesman
recently said our requirement for foreign assistance in the next
fiscal year is in the order of five billion dollars. If we test, we
won't get a penny. And it's all very well to say we will eat grass,
but I doubt there is enough grass around to sustain 140 million
hungry Pakistanis. As it is, the stock market is reeling from what
the government is doing to the private power producers: it will go
through the floor if sanctions are imposed on us.
Another factor to keep in mind is the fact that India is surplus in
the major food crops it needs, while we are net importers. if
sanctions are slapped on us, our international credit rating,
already very low, will fall to unacceptable levels, forcing us to
pay ruinous interest rates to the banks that will still be willing
to lend us money to pay for wheat and oil. The rupee will plunge
against all currencies, and a devastating inflation will ravage
what is left of the economy.
As these implications of conducting a nuclear test are obvious, I
suspect one reason the BJP-led government went ahead anyway is that
it was threatened with collapse, given the flimsy nature of the
makeshift coalition. But having taken this step, Vajpayee has
earned kudos from across the political spectrum, and ensured his
government's survival, at least in the short-run. There is no such
pressure on Nawaz Sharif. He has the luxury of not having to
respond in kind, and turn a deaf ear to the shrill cries of hawks
in and out of his party.
At the end of the day, true leadership is about taking unpopular
decisions at times. Just because the masses bay for blood does not
mean they should get it. For once, let us set our own agenda, and
not let our big neighbour set it for us. Also it's our turn to be
holier-than-thou, and join the world in reviling India; we've been
at the receiving end for far too long.
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980515
-------------------------------------------------------------------
India's military build-up
-------------------------------------------------------------------
Israrul Haq
INDIA, the fourth largest air power of the world, has not only a
massive fleet of 1100 modern aircraft like MIG 29,30; SUs 27,29,30,
mirage 2000 and Jaguars. Half of this fleet consists of state-of-
the-art aircraft as against Pakistan's much smaller fleet. Of this
only about 35 F-16s are state-of-the-art craft which can perform
the non-conventional role of delivering nuclear warheads.
With the induction of Russian SU-30 into the Indian fleet,
Pakistani F-16 aircraft have been out-ranged and out-weaponed and
thus the balance of air power has drastically moved against
Pakistan.
The other day an Indian spy plane penetrated deep into Pakistan and
carried out a reconnaissance of the Pakistani defence installation
un-intercepted by Pakistani planes. None of these Indian state-of-
the-art aircraft is capable of penetrating into China, a supposed
adversary of India, from their air bases. Hence they have only
Pakistan as their targets.
Similarly, India's second largest army in the world is equipped
with, among other modern weapons, a fleet of 4,000 state-of-the-art
tanks mounted with long-range guns as against Pakistan's much
smaller fleet which mostly consists of the tanks of the '60s
vintage. Pakistan's latest version of Khalid tank is still not
operational.
Pakistan's navy stands completely dwarfed and overwhelmed by the
India's two giant navies, with a fleet of aircraft carriers and a
number of nuclear submarines. India is also fairly advanced in
developing its missile Sagarica which can be fired from submarines.
A few years ago, intelligence experts deposed before the US
Congress that India's massive military build-up was primarily
geared to the requirement of its hegemonic role.
The Indian Institute of Defence Studies and Analysis, an
influential organization in India, in a public debate on February
21, 1997 took the position that "a long-range missile system was
necessary in order to militarily control from the strait of Malacca
to the strait of Hurmoz (near Iran)." The Institute further made it
clear that "the defence needs of India arise not merely from the
need to defend its border but more so from the regional and global
issues. India would like to see the regional and global issues to
be resolved in the best interest of India for which it has to
develop into a military power."
It should serve as an eye opener to the observers that in spite of
India's close and cordial relations with Iran the military
strategists of India should be so loudly thinking of militarily
controlling the jugular vein of Iran, that is Hurmoz. In spite of
the truce with China on border dispute, Indian Defence Minister
George Fernandes has been flexing his military muscles against
China. India's military posture, therefore, does not arise from the
need of its defence and security but from its ambition of regional
and ultimately global domination.
The BJP ideologues have gone even further in pledging to turn India
into a 'Dharmic' (religious) superpower. The Vishva Hindu Parishad
mobilizing the Hindus on the basis of religion all over the world,
the RSS successfully militarizing the Hindus and secretly vowing to
undo the division of mother India, Prime Minister Vajpayee's
commitment to the nuclear option, the appointment of Saxena, the
former RAW chief, as the governor of occupied Kashmir and the new
BJP president Thakre threatening to bring Pakistan to its knees,
all these signify the gathering of the storm before the outbreak of
armed hostilities.
Seen in this perspective, even if Pakistan dismantles all its
defences and settles all its disputes on terms of India and also
develops trade relations, this, far from ushering in an era of
peace and friendship, would only fuel the fire of India's hegemonic
ambitions and military chauvinism and would pose even greater
threat to the security and integrity, not only of Pakistan, but all
other weaker neighbours.
But in the midst of the rising crescendo of national rejoicings on
the successful test-firing of Ghauri, Mr M.B. Naqvi chose to
severely criticise the missile enthusiasts (Dawn April 29):
The writer perhaps himself would have joined the nation in its
rejoicings if he could see through India's mounting anti-Pakistan
military chauvinism, now evident from the five nuclear tests
carried out this week.
Mr Naqvi's argument that, after all, we have tried arms race, cold
war and military confrontation for 50 years, making our problems
only more intractable is based on the wrong hypothesis that it was
Pakistan, and not India, which opted for the arms race, cold war
and military confrontation. It was India which took the Kashmir
dispute to the Security Council and pledged to implement its
resolutions but it went back on its solemn pledge and declared
Kashmir to be its integral part ultimately giving rise to an
uprising in the occupied territory. The BJP leadership is
threatening to annex Azad Kashmir. The other day a number of highly
trained terrorists from India infiltrated into Azad Kashmir and
killed 22 innocent Kashmiris.
Again in violation of the Indus Basin agreement India has built
dams over rivers Chenab and Jhelum. India, besides committing
aggression against Pakistan thrice on one pretext or another, has
been amassing troops on the Pakistani borders. Not long ago India
mobilized its army on Rajasthan-Sindh border on the pretext of army
exercise "Brasstack" as a camouflage to attack Sindh. Earlier Mrs
Indira Gandhi had made all the preparations to attack Pakistan but
the American intelligence got the wind of it and the sinister move
was thus frustrated.
India first exploded its nuclear device in 1974 which sent Pakistan
scurrying seeking the protection of the nuclear powers but no such
protection was promised. Pakistan also sought an assurance from the
India that its nuclear device will not be used against Pakistan but
no such assurance was forthcoming.
Pakistan was thus left with no alternative but to seek its own
nuclear capability.
Similarly it was India which secretly developed its missile system
and then publicly carried out test firing of the Prithvi and Agni
missiles despite protests from Pakistan. Now, it has carried out
more nuclear tests.
It is, therefore evident that the fifty years of cold war, arms
race and military confrontation were initiated and precipitated by
India and Pakistan only responded to it. Therefore, the question of
Pakistan signing the NPT and CTBT unilaterally, simply does not
arise.
===================================================================
SPORTS
980515
-------------------------------------------------------------------
Over 300 to compete in All-Pakistan badminton
-------------------------------------------------------------------
Reporter
ISLAMABAD, May 14: Over 300 shuttlers from 13 departments and
10 divisions will participate in the 7th All-Pakistan Badminton
Tournament being held at POF Wah from May 20 to 25.
Events will be held in men's singles and doubles, ladies singles
and doubles, boys under-18 singles and veterans doubles.
The national event is being under the auspices of POF Wah Sports
Control Board.
The participating teams are WAPDA, PIA, PTCL, Police, Railways,
ADBP, NBP, ABL, UBL, HBL, Army, Navy, Air Force, Rawalpindi,
Lahore, Multan, Gujranwala, Bahawalpur, D.G Khan, Hazara, Peshawar,
Karachi and Quetta.
Last year Mohammad Ashraf rolled over six times national champion
Aamir Islam to win the men's singles title whereas Asma Butt will
be defending the ladies title.
Organising secretary Mohammad Taufeeq said Rs 40,000 will be given
as prize-money.
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980510
-------------------------------------------------------------------
Lincou beats Mansoor to bag Pakistan squash title
-------------------------------------------------------------------
Reporter
KARACHI, May 9 France's Thierry Lincou, seeded eight and ranked
54th in the world, was given tough time by Pakistan's qualifier
Mansoor Zaman, 78th in the world, before the former won the
Pakistan Squash Circuit Two Tournament in Peshawar today.
According to a telephonic message from the organisers, Thierry
Lincou, who was the runnerup in the recently concluded Pakistan
Squash Circuit one tournament at Lahore, dropped the second game
before winning the final 15-12, 13-15, 15-12, 15-10.
Reigning Asian junior champion Mansoor Zaman, who as a qualifier
reached the final removing three seeded players, fought out the
title battle for one hour and five minutes before losing to the
Frenchman.
The tournament carried a total cash prize of US dollars 9,000/- and
was organised by the NWFP squash association. France's Lincou beats
Mansoor to bag squash title.
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980514
-------------------------------------------------------------------
Punjab gears up to hold National Games in Lahore
-------------------------------------------------------------------
Sports Reporter
LAHORE, May 13: XXVIII National Games will be organised at Lahore
in the year 2000 in a befitting manner. For that purpose, necessary
infra-structure will be built and all amenities would be provided.
Punjab Chief Minister's advisor on sports Akhtar Rasool Chaudhary,
during a ceremony arranged at the National Hockey Stadium (NHS) on
Wednesday to give awards to Punjab sportsmen and sportswomen who
won medals during the National Games at Peshawar, held out a firm
assurance on behalf of the Chief Minister. He also requested the
Federal Government to make generous grant for the XXVIII National
Games. He requested the advisor on sports to Federal Sports
Ministry, Ali Muhammad Khawaja (also present on the occasion), to
do his bit for that purpose.
"The Punjab players should not rest on the laurels gained at
Peshawar but should strive harder to achieve greater honours for
the province and the country", said the Bombay World Hockey Cup-
winning Pakistan team captain Akhtar Rasool.
Akhtar reminded that there was always room for improvement. "When,
I was declared the best player of the World Cup, my father, the
Olympian Ghulam Rasool Chaudhary had pointed out seven mistakes
committed by me during the tournament", Akhtar Rasool told the
Punjab players, who in his opinion should now aim at winning top
honours during the next National Games.
Punjab Olympic Association (POA) president and former provincial
chief secretary Javed Ahmad Qureshi urged the government to build
indoor gymnasia and outdoor stadia in Lahore of international
standard so that not only the XXVIII National Games be organised
efficiently but international and regional competitions could also
be organised in this 'haven of sports'.
The association secretary Ali Muhammad Khawaja said that a
committee was being formed which would meet Chief Minister Shahbaz
Sharif and ask him to dole out funds for building a tartan track in
Lahore and improving other facilities.
Deputy chef-de-mission of the Punjab contingent in XXVII National
Games at Peshawar, Idrees Haider Khawaja congratulated his wards
for gaining better performance this time than the one exhibited
during the XXVI National Games at Karachi in 1997.
Every player who won an individual gold medal got a cash award of
Rs 5000. Silver medal winner was given Rs 3000 and bronze medalist
was awarded Rs 2000. Members of every team which won gold medals
got Rs 3000, each.
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