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DAWN WIRE SERVICE
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Week Ending : 18 April 1998 Issue : 04/16
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C O N T E N T S
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N A T I O N A L N E W S
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Pakistan being made invincible, says Nawaz
Khidmat committees to get full powers: PM
Final round of PML-MQM talks today
$1m paid for documents on Bhuttos' accounts
Lanka to buy gunboat from Pakistan,says paper
US seeks to diversify ties with Pakistan
WHO declares war on polio, maternal death
Power pacts not to be cancelled: seminar told
Call to explore Pakistan, India trade potential
Plan to boost software export
---------------------------------
B U S I N E S S & E C O N O M Y
---------------------------------
Trade gap narrows to $1.36bn
Money market in liquidity crisis
Economists want tax base widened
Sale of govt land to encourage small units
Tea prices fall by Rs25-30 per kg
Southern Region collects Rs17.50bn income tax
State Bank relaxes Prudential Regulations
Use of natural gas stressed in new policy
IPPs ready to reduce tariff conditionally
Stocks end with clipped gains, decline resisted
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E D I T O R I A L S & F E A T U R E S
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Storming of the Supreme Court-3 Ardeshir Cowasjee
Another day, another circus Irfan Husain
Implications of the missile test Lt Gen (retd) Talat Masood
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S P O R T S
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Jansher's defeat an ominous pointer
Dutch coach starts training of probables
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N A T I O N A L N E W S
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980413
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Pakistan being made invincible, says Nawaz
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Staff Reporter
LAHORE, April 12: Prime Minister Nawaz Sharif expressed his resolve
to make Pakistan an invincible and prosperous country where
problems of the people could be solved immediately.
He said he knew that the people had pinned high hopes on his
government and he was trying to come up to their expectations.
Speaking to the people gathered at his Model Town residence here on
Sunday, Mr Sharif said he wanted to strengthen the national defence
so that the enemy could not harbour evil designs against the
country. Likewise, he said, he wanted to make Pakistan an
economically prosperous state where the people faced no problems.
He said he was aware of the problems of the people and held out an
assurance that those would be solved soon.
Many people apprised the prime minister of their problems and he
issued instructions for their solution.
Some people insisted that Mr Sharif should make an announcement for
the construction of the 3,600 megawatt Kalabagh dam. They
maintained that the prime minister would go down in the history as
a courageous ruler and a benefactor of the nation if he approved
the Kalabagh project brushing aside resistance from different
quarters.
The prime minister, however, did not oblige them saying that the
supporters of the project should also take into account his
constraints. He said he knew that he would be praised if he
announced the launching of the project, but added that being a
prime minister of the country he could not take any decision
without much consideration.
Referring to the civic problems of big cities, the prime minister
said that the government was contemplating engaging international
firms to maintain cleanliness, water supply and drainage system. He
hoped that a qualitative change would be witnessed if the
experiment succeeded.
The prime minister said that Water and Sanitation Agency (WASA) had
failed to perform its duties. The reason, he said, was paucity of
resources and equipment to deal with the problems of the unplanned
growth of the city. In his opinion there was a dire need to
maintain a check on the unplanned growth of cities.
Referring to the Khidmat (service) committees scheduled to be sworn
in across the country on Monday afternoon, the prime minister said
they would help solve the problems of the people. He said although
the establishment of the committees had earlier been delayed
because of reservations expressed by various people, those would
render valuable services.
Mr Sharif took exception to complaints that medico-legal reports
were not being provided on time. He directed all concerned to
remove procedural bottlenecks so that the aggrieved parties could
get justice immediately.
The prime minister said he would also take up the matter with the
Punjab chief minister, chief secretary and the inspector-general of
police.
The prime minister promised to provide a yellow cab to a jobless.
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980416
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Khidmat committees to get full powers: PM
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Correspondent
SUKKUR, April 15: Prime Minister Nawaz Sharif declared here on
Wednesday that his government aimed at rebuilding and restoring
public confidence in national institutions, and towards that end a
crusade would be launched to eliminate illiteracy, obscenity and
corruption.
He was speaking at an open kutchery in connection with land
distribution among landless peasants in the Shah Mohammad Mazari
village of Kashmore.
The prime minister said the nation had been kept illiterate for
fifty years, but his government was trying to provide education to
children of the under-privileged people and to give them job and
other opportunities available to the privileged classes.
He said he would like to see happiness and hope in the eyes of
these poor (the landless peasants) people, because they had
remained bareheaded and barefooted for centuries although the land
belonged to them.
He said he would ensure that the jobless educated youth were
allotted lands, especially the agriculture graduates, and his
government would give them soft loans for tubewells and tractors.
The prime minister claimed that during his first term dacoities and
kidnappings had been banished. That was why, he said, the people of
Sindh had voted in large numbers for his party in the last
elections.
He predicted that with his present package of reforms his party
would capture the remaining seats in the province in the next
elections.
Mr Sharif said Khidmat committees had been launched to eliminate
corruption and he would fully protect them in their crusade against
evils. He said he would also launch a campaign against dowry,
because it, too, was a curse.
He also referred to the new education policy which, he said, would
make each and every child in the country enable to get education in
primary schools.
The prime minister also ordered an enquiry by the Khidmat committee
of Kandh Kot against the SHO of Tangwani on an allegation by a
teacher, Noor Mohammad Bijarani, of excesses and accepting graft
from him of Rs 7,000. He called both the complainant and the SHO on
to the stage and asked them to state their versions.
The teacher accused the SHO of pressuring him for graft for
releasing him when (the teacher) was on census duty. The SHO denied
this and said the teacher was wanted in a karo-kari case.
The PM asked the Khidmat committee to hold an inquiry and give him
a report in seven days.
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980418
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Final round of PML-MQM talks today
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Correspondent
LONDON, April 17: Talks between Muttahida Qaumi Movement (MQM) and
Pakistan Muslim League (PML) are moving in a positive direction and
will arrive at a positive conclusion on Saturday, leaders of the
two sides said here after Friday's meeting.
"Things are moving towards an understanding and we hope matters
will be resolved," MQM chief Altaf Hussain told reporters after the
three-hour-long talks held at the Muttahida's International
Secretariat in Edgware, north-west London.
The PML leaders, Chaudhry Nisar and Sindh Chief Minister Liaquat
Jatoi, also sounded optimistic about the outcome and hoped that the
talks would end on a positive note.
The next session of the second round will be held on Saturday at
11.30am.
He was the first to comment on the negotiations as he emerged from
the venue along with PML leaders.
Federal minister Chaudhry Nisar Ali, who is leading the government
side, told reporters that another session would be held on Saturday
and hopefully it would yield "some result".
"Another session will be held tomorrow and I am confident that we
will arrive at some positive conclusion."
Chaudhry Nisar said during Friday talks, the two sides discussed a
large number of issues, including the Muttahida's demand to get the
"no-go areas" vacated.
He said more discussion on the issue would be held during the
Saturday session.
The minister said MQM chief Altaf Hussain gave an overview of the
MQM-PML relationship. "It was an overall review of PML-MQM
relationship of the last 10 years," he said. The government side,
he added, placed before him PML's viewpoint on certain issues.
"There was a complete consensus between the two sides that joint
efforts to preserve the political and democratic process in the
country should continue."
Referring to differences between the two parties, Chaudhry Nisar
said such misgivings and misunderstandings did occur between
alliances but asserted that these should be removed in a "political
manner."
"The general tone and tenor (during the talks) was positive and
friendly and reflected 10 years of relationship between the two
parties," he said.
"You should see the expression on our faces to know about the
atmosphere inside," a beaming minister said.
ALTAF: Mutahhida Qaumi Movement chief Altaf Hussain said on Friday
that the MQM was entering into talks with the government with an
open mind but the result would depend on the intentions of the two
sides.
"Both sides are present here and they are here to resolve the
problems and I would say it all depends on the intentions of both
the sides," the MQM chief told reporters before entering into talks
with the two-member PML team comprising federal minister for
provincial coordination, Chaudhry Nisar Ali and Sindh chief
minister Liaquat Jatoi.
Mr Altaf said the two sides were here with good intentions to
resolve the issue and that the Mutahhida was in favour of a
solution.
"We want to arrive at some conclusion, which will be beneficial for
both of us as well as for democracy and the country," he
emphasised.
He said the meeting would discuss the main agenda i.e. the vacation
of the no-go areas in Karachi from its rival Haqqiqi group.
Chaudhry Nisar Ali said his party was here with high hopes. He said
PML's alliance with Mutahhida was decade-old and had seen many ups
and downs.
"Invariably we have come out of difficult times and we are hopeful
that even this time we will come out," he said.
The talks started at 5.00pm London time (9.00pm Pakistan time).
Mr Altaf Hussain is leading his team at the talks which includes
Senator Aftab Sheikh, Ms Nasreen Jaleel, Qazi Khalid, Dr Farooq
Sattar and Federal Health Minister Khalid Maqbool Siddiqui and
Sindh Labour Minister Shoaib Bokhari.
The first round of talks between Chaudhry Nisar Ali and Altaf
Hussain on Wednesday did not yield any result and it was decided to
hold second round of talks to be attended by Sindh chief minister
Liaquat Jatoi and members of the MQM coordination committee.
The MM meeting ended at 8.00am on Friday morning.
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980413
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$1m paid for documents on Bhuttos' accounts
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Correspondent
LONDON, April 12: Pakistani politicians, apparently belonging to
the ruling Pakistan Muslim League, had paid $1 million ( around Rs
45 million) to an un-named source in return for the documents which
allegedly establish opposition leader Benazir Bhutto and her
husband Asif Ali Zardari's involvement in corruption, The Sunday
Times claimed in a full-page article today.
Published on the front page of the News Review section of the
newspaper and titled as "The Hunt for Benazir's Booty", the article
does not mention the name of the politicians who paid such a huge
amount for the documents and whether the money was paid from the
government coffers or from their own pockets. Nor does it clarify
where did such huge amount come from.
Written by Rajeev Siyal, a journalist of Indian-origin working for
The Sunday Times and Stephen Grey, the article, quoting its
sources, said that Ms Bhutto's political downfall was "sealed in
1995 in a hotel room overlooking Hyde Park in London."
" Dressed in shalwar-kamiz. senior agents of the Pakistan Muslim
League, the opposition party, sat around a table, drinking glasses
of mineral water with a team of private investigators," the article
claimed.
"An explosive offer was being discussed. A mysterious source wanted
$10 million for a few photo-copied pieces of paper. The source was
not prepared to show the documents in advance but he claimed they
were items from the office of Jens Schlegelmilch, a Geneva lawyer
and the Bhutto family's agent in Europe. They proved, he claimed,
that Benazir and her family had secretly been amassing a fortune in
Swiss bank accounts by taking corrupt commissions on government
contracts," the article said.
"At first the Pakistanis were suspicious. The source refused to
show the documents in advance and there was no way of proving their
authenticity. 'There was a lot of negotiation but the man was not
prepared to bargain properly. He could not come to a deal
initially, even if it all appeared exciting,' said one person
invovled," the article said, quoting an un-named PML source.
"Rebuffed, the source disappeared without a deal being concluded,"
the article said and quoted its source as saying: "He disappeared
off the face of the earth even though we were desperate to find him
again, until, out of the blue, he phoned up. This time we could do
business."
The article said that after the dismissal of Benazir Bhutto's
government in 1996, the un-named source again contacted the PML
leadership to make the deal in return for the documents.
"On cue, the missing Bhutto mole made contact. Sources say $1
million was handed over in return for the documents. For Benazir's
enemies, this Swiss dossier was cheap at the price," the article
said.
But it did not mention which PML leader paid the money and several
questions remain unanswered. Questions like whether it was paid
from his own pocket or from the government coffers? If paid from
own pocket, from where did he get this money and whether it was
tax-paid money or black money?
The paper has mentioned some of the documents of the dossier and
they are apparently those which Ehtesab Bureau Chairman Saifur
Rehman carries in his briefcase all the time to show and deliver it
to any journalist willing to publish them.
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980412
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Lanka to buy gunboat from Pakistan,says paper
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Ranjitha Balasubramanyam
COLOMBO, April 11: The Sri Lankan navy proposes to buy a gunboat
from Pakistan which fires missiles, a privately-owned daily, The
Island, revealed recently.
"The Sri Lanka navy is seriously considering buying a missile
gunboat from Pakistan which will cost the taxpayer a stupendous one
million dollars each time a missile is fired," the newspaper said
quoting unidentified defence sources.
The report said a high-powered team of navy officers, which
recently returned from Pakistan after inspecting the vessel, had
submitted a report recommending the purchase of the missile
gunboat, which itself would cost $15 million.
The team of officials visited Pakistan following the visit of the
navy commander, Admiral Cecil Tissera, who had suggested to the
government that Pakistan had several warships that could be
inspected by the navy before vessels could be procured to upgrade
its fleet, the report said.
The newspaper said the million-dollar missiles used by the armoury
of the Pakistani gunboat carried very small warheads and had far
less destructive power than the ordinary artillery shells fired by
the army. "The only advantage these missiles will have over
artillery shells is that they will have a sophisticated guidance
system which could zero in on a precise target. However, since the
missiles have a range of nearly a hundred kilometres, they will
need to be guided by a sophisticated equipment on board an
aircraft. Such an aircraft would cost in the range of another
twelve million dollars," the report said.
The newspaper claimed that the navy did not need such a vessel as
the air force was capable of bombarding enemy targets on shore.
"The air force already has bomb targeting systems on board their
Israel-built Kfir jet bombers, which are just as good," the report
said.
The report said the navy had invited tenders for a warship with
heavy guns, which closed on March 24. Bids were received from
Ukraine, Pakistan, Russia, United States, Israel, Australia,
Holland and Singapore.
"However, the Pakistani bid does not contain a 76mm gun as the
tender clearly specifies, and has the missile system instead. Thus,
it is surely going to be rejected," the report inferred.
It charged that the navy appeared to be pushing ahead with plans to
purchase the warship although it had floated a tender. The
Pakistanis, the report said, had been outclassed by warships of
eight other nations who had also sent in bids. "The Pakistanis sent
in a bid, which everyone sees does not fit the bill, and yet the
navy may purchase this ship outside the tender itself," the
newspaper claimed.
The president, Chandrika Kumaratunga, had cancelled the Russian
arms deal in 1994, when she took over as the prime minister. She
had termed the transaction a "crooked deal" and ordered the defence
ministry to revoke it.
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980417
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US seeks to diversify ties with Pakistan
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Hasan Akhtar
ISLAMABAD, April 16: The visiting US special envoy Bill Richardson
said on Thursday that Washington had moved away from the "single-
item agenda" in the context of Pakistan-US relationship and was
seeking to build new linkages in diverse fields, with particular
emphasis on trade, commerce and investment.
The US ambassador to the UN said this during extensive talks with
Prime Minister Nawaz Sharif and other officials in the morning
which covered all aspects of bilateral, global and regional
concern, including Kashmir, Afghanistan and the issue of F-16
planes.
Mr Richardson assured the prime minister that the main focus of
President Clinton's visit would be to consolidate friendly
relationship between the two countries.
Referring to the unresolved issue of F-16 planes, Mr Richardson
admitted that it had been an irritant in an otherwise excellent
relationship. He said President Clinton had conceded that it was
unfair on the part of the United States to have kept the planes as
well as the money paid by Pakistan for the aircraft and was keen to
resolve the issue to the satisfaction of Pakistan, an official
source said.
Prime Minister Nawaz Sharif, in response, expressed confidence that
President Clinton's visit to the region this year would help
promote peace and stability in South Asia. He hoped that India
would be persuaded to resume talks on Kashmir and other contentious
issues and end atrocities in Kashmir.
The prime minister informed Mr Richardson about the regional
situation and the test-firing of Ghauri missile. He said that the
development of the missile was for defence purpose and to serve as
a deterrent.
Foreign Minister Gohar Ayub Khan, Foreign Secretary Shamshad Ahmad
and Pakistan's Ambassador to Washington Riaz Khokar assisted the
prime minister in talks with the American delegation. Besides Mr
Richardson, three senior US officials Assistant Secretary
Inderfurth, Director of the National Security Council Bruce Riedel
and US Ambassador to Pakistan Thomas Simons were present during the
talks.
Mr Richardson conveyed to Prime Minister Nawaz Sharif US President
Bill Clinton's warm greetings and said he had been sent as a
special envoy to undertake necessary groundwork in preparation for
the upcoming visit of President Clinton.
Later, Bill Richardson and his delegation held formal talks at the
Foreign Office which covered all major regional issues. Foreign
Minister Gohar Ayub, who led Pakistan side at the talks, reiterated
Pakistan's willingness to resume talks with India at the earliest
on the basis of the Islamabad agreement of June 23, 1997, which
envisaged setting up of separate working groups for discussion on
Kashmir and security, besides other issues.
Foreign Minister Gohar Ayub while referring to Pakistan's
initiative for peace in Afghanistan told the US delegation that the
settlement of Afghan issue was possible only if the Afghan groups
hold talks.
AFGHAN TALKS: The situation in Afghanistan was also discussed in
detail with the US team. Ambassador Richardson expressed deep
appreciation for the major initiatives taken by the prime minister
to promote a peaceful resolution of the ongoing conflict in that
war-torn country.
He reiterated that the United States wished to promote a serious
dialogue among the many factions in Afghanistan and recognized that
Pakistan had to play a major role in this process.
The United States has proposed to the Afghan factions to initiate
negotiations on April 27, Afghan sources said in Islamabad on
Thursday.
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980416
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WHO declares war on polio, maternal death
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Staff Reporter
KARACHI, April 15: The menace of polio will be eradicated and the
maternal mortality rate will be reduced by at least 50 per cent in
Pakistan by the year 2000. All efforts will, however, be made to
bring down the maternal mortality rate to the minimum.
This was stated in a message of Dr Hussein Gezairy, regional
director of World Health Organization, at the world children's
health conference on Wednesday on "Safe motherhood" a subject
chosen for this year's World Health Day. The conference was
organized by Hamdard Public School.
The WHO representative said after the eradication of small pox from
the face of the earth and the elimination of guinea-worm disease
from many countries, including Pakistan, the WHO's next target was
eradication of polio and a drastic cut in maternal mortality by the
year 2000.
He said nearly half of the world's women had no one to attend to
them during labour pain to provide help if things went wrong. Over
half a million mothers died during child-birth each year, he said,
adding that in addition to that 50 million more women suffered from
maternal morbidities as a result of pregnancy- related
complications while 80 per cent suffered long-term morbidities.
Dr Gezairy said almost 90 per cent of these deaths occurred in Asia
and Sub-Saharan Africa, 10 per cent in other developing regions,
less than 1 per cent in the developed world, and 25 to 33 per cent
of such deaths of women of reproductive age resulted from
complications related to pregnancy or child-birth.
Giving more statistics, he said at least 35 per cent of women in
developing countries still received no ante-natal care, almost 50
per cent gave birth without a skilled attendant and 70 per cent
received no post-partum care. In contrast, maternal healthcare is
nearly universal in the developed world.
Dr Gezairy said maternal mortality in the developing world was 18
times higher than in the developed part of the world. Similarly,
infant mortality was almost seven times higher in the developing
regions than in the developed world, he added.
In Pakistan, the WHO representative said, the situation was very
serious as only 19 per cent of women had access to skilled birth
attendant and only 26 per cent women received pre-natal care.
Child-birth and pregnancy-related complications accounted for
25,000 to 30,000 deaths in Pakistan every year, Dr Gezairy said,
adding that those who suffered morbidities and disabilities were
four to five times higher in number and most of these deaths could
be prevented by bringing about improvement in the reproductive
health services in a decentralized manner.
He said these maternal mortality ratios reflected women's risk of
dying each time she became pregnant because women in developing
countries bore many children and obstetric care was poor. Their
lifetime risk of dying is 40 times higher than in the developed
world. A combination of factors, including poverty, ignorance, lack
of healthcare facilities, poor nutrition, unsafe drinking water and
poor sanitation, also contributed to the high maternal mortality,
he added.
He said the WHO had called for a package of interventions and
measures aimed at improving the health status of mothers and the
new-born children. These measures also include birth spacing,
promotion of family planning practices and breast-feeding.
"Problems of maternal mortality can also be tackled through the
provision of an integrated health and social care to women, from
childhood through adolescence and womanhood. In countries of our
region, including Pakistan, which is a Muslim region, such issues
should not be a problem," the WHO representative added.
He said Islam accords a special and most respectful status to women
whether they are mothers, daughters, sisters or wives.
Those who spoke at the conference included Hamdard Foundation
president Hakim Said.
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980415
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Power pacts not to be cancelled: seminar told
-------------------------------------------------------------------
Reporter
KARACHI, April 14: The government will not cancel agreements with
the Independent Power Projects (IPPs) and instead strive for an
amicable settlement with them on the issue of tariff revision, said
the Minister for Water and Power Raja Nadir Pervaiz on Tuesday.
"The impression that we are going to cancel the agreements is not
correct," said the minister while inaugurating the two-day seminar
on energy organized jointly by ABN Amro and Financial Post and made
it clear that "negotiations with the IPPs will continue and we are
not going to take any unilateral decisions, it has to be across the
table and will be a package deal."
Emphasizing the need for a negotiated settlement the minister said
that if the two sides failed to convince each other then there
would be parting of ways but hoped that "situation will not arise."
He said WAPDA was paying Rs 6 billion every month to the IPPs which
should be rescheduled. Its payment, he said, should not be front-
loaded and bracketing of the project should be advanced by two
three years.
The minister said the private power projects could not do it on
their own. They have to discuss it with other lenders of credit,
besides the World Bank and the IFC.
He however, emphasised that relief on interest by lenders to the
IPPs should be passed on to WAPDA and its consumers.
The minister said that WAPDA had a surplus of 2000mw and was
looking for markets in and outside the country. However, that would
depend on the government decision.
"We are trying to convince the IPPs to extend the implementation of
their projects till year 2002 to enable WAPDA to find new consumers
for surplus power", said Raja Nadir Pervez.
Replying a question the minister said the government was looking at
various options which included adjustment of fuel price.
He said government was also reviewing proposals to convert furnace-
oil-based projects into gas or coal-based projects to reduce the
input costs.
Chairing the first session of the seminar the minister disclosed
that government was also considering concessions in power tariff
for industrial consumers and special structures for sick units as
part of their revival plan. "The flat rates for tubewells will now
be offered for only 10 hours", he added.
Faridullah Khan, Joint Secretary Ministry of Water and Power spelt
out salient features of the new power policy which would be based
on competitive bidding and the government would invite bids for
specific requirements.
Earlier, Managing Director of the KESC, Kamal Afsar said the public
sector power utilities have proposed to the government to waive
development surcharges on fuels so that input costs incurred in
generation and transmission can be brought down.
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980415
-------------------------------------------------------------------
Call to explore Pakistan, India trade potential
-------------------------------------------------------------------
Staff Reporter
LAHORE, April 14: There exists a lot of potential for trade between
India and Pakistan which must be explored for the benefit of their
people.
'Let's talk trade. Let's leave the controversial and political
issues to governments to resolve. Trade will bring about a lot of
change (in the bilateral relations),' Automotive Component
Manufacturers Association of India president K. Mahesh told
businessmen at the Lahore Chamber of Commerce and Industry (LCCI)
here on Tuesday.
Mahesh is leading a 20-member delegation of Indian businessmen
involved in automotive components manufacturing. He said the Indian
automotive component manufacturers were prepared to share their
experience with their Pakistani counterparts and transfer
technology to them to help them improve their production.
He said the businessmen should form groups to lobby with their
respective governments to promote trade because nobody would come
to help them if they did not start working together. 'This is the
only solution to our problems.'
He was of the view that SAARC should be activated on the lines of
ASEAN, NAFTA and European Union. 'Trade will open the doors for the
resolution of problems between the two countries,' he assured the
businessmen.
He said the multilateral agencies like IMF and World Bank and WTO
were not working for Pakistan or India. 'They serve the interests
of the richer nations. There solutions for the poorer countries
have never worked. It is for us to help each other if we wish our
people to prosper and develop.'
Mahesh said liberalization and opening of 'bilateral trade was in
the interest of both the countries'. 'It'll give you access to
cheaper raw materials and other goods. Besides, it will also give
you a cheaper land route to approach Bangladesh and Sri Lanka for
marketing of your products.'
He sought to dispel the impression that the 'Indian industries
enjoyed government subsidies'. 'It is not true. The government is
giving subsidies to farmers alone by providing cheaper fertilizer
to them. We don't want any subsidies.'
Replying to a question by journalists, Mahesh said the members of
his delegation did not expect any concrete business deals from
their present visit. 'We have come to explore the potential which
exists if the business community of the two countries decides to
work together. It will also help the businessmen of the two sides
to understand tariff regime of the other country.'
He eschewed questions relating to the political troubles like the
Kashmir issue, saying: 'Political issues must be left to the
governments to settle. We must talk trade which can bring about a
lot of change (in bilateral relations).'
He sought to dispel the impression that Indian goods would swarm
the Pakistani markets once the free trade was allowed. 'It is not
true. I'll be surprised if any Indian company floods its products
in Pakistan.'
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980417
-------------------------------------------------------------------
Plan to boost software export
-------------------------------------------------------------------
Reporter
KARACHI, April 16: A Rs273 million information technology plan has
been designed to boost software export through the development of
software professionals and experts by recognizing the possibility
that foreign exchange earnings from software exports have the
potential of solving the budget deficit.
The information technology initiative, which is claimed to be the
brainchild of Sindh Governor Moinuddin Haider, covers areas such as
development of curriculum for universities to prepare graduates for
software export market requirement, introduction of short courses
to train a large number of professionals who can exploit
opportunities offered by the millennium bug, and increase in
resources to upgrade the computer departments.
The areas also include setting up a high speed computer network of
universities, sharing of experienced faculty and computing
resources, Internet and e-mail facilities at universities, and
supporting of computer institutes through affiliation.
Speaking at a briefing for newsmen at the conclusion of a meeting
of vice chancellors and computer experts at the Governor's House on
Thursday, the governor said the plan had been put into operation
after almost six months of groundwork during which various
specialized committees submitted their findings.
The governor said he had held several meetings with the vice
chancellors of universities in Sindh and the heads of their
respective computer departments to develop a plan for improving
computer education and monitor its execution.
The first meeting was held on August 27, 1997, at the Institute of
Business Administration. The meeting finalized an information
technology plan which was put into execution immediately.
The governor said there were plans to create a computer culture in
schools, colleges and universities in the province to exploit the
potential.
===================================================================
B U S I N E S S & E C O N O M Y
===================================================================
980412
-------------------------------------------------------------------
Trade gap narrows to $1.36bn in 9 months
-------------------------------------------------------------------
Muhammad Ilyas
ISLAMABAD, April 11: Pakistan's foreign trade gap narrowed further
to about $1.36 billion during the first nine months of the current
financial year, says a Federal Bureau of Statistics statement.
This is about $42 million more than the gap registered during July-
February (1997-98). A decline of 2.53% in exports for March 1998
signifies a slowing down of the process. Silver line is that
imports had a dramatic drop of 31.9% in dollars.
According to the statistics, the exports during July-March (1997-
98) totalled $6.417 billion 4.7 per cent more than during the
corresponding of last year, while the imports dropped 11.11 per
cent to $8.749 billion. The trade gap in July-March (1996-97) was
$2.62 billion, i.e. about $1 billion more than in the corresponding
of 1997-98. This raises the possibility that the country would
realise the projection of $2.33 billion for trade gap by next June.
However, one has to sit with fingers crossed to see whether it can
achieve the target of $9.575 billion for exports for the current
year. For in the remaining three months, Pakistan would need to
export at the average monthly rate of $0.797 billion in order to
come at par with the target, in contrast to the performance during
July-March $0.713 billion per month. This compares favourably
with last year when the corresponding period had registered a
monthly average of $0.681 million. The group "Primary Commodities"
constituted 14.59% of total imports during the 9-month period as
against 12.43% for the corresponding period of last year. But then
this is the only group which showed positive growth.
Textile manufactures: This group, which had teetered on the brink
for the past couple of months, dropped its exports by 0.92% on the
cumulative performance for the nine-month period. In March,
however, it plunged 15.93% as compared to the same month of 1997.
Its exports during July-March totalled $4.060 billion, thus
reducing its contribution to 63.27% of the total exports for July-
March (1997-98), down from 66.86% for July-March (1996-97). During
March, exports of this group totalled $0.422 billion.
The data show a quantitative increase of 37% in import of soyabean
oil (101,348 tons) and palm oil (778,002 tons). But in dollar
terms, the import bill for these oils increased by 84%. In rupee
terms, the increase was more than double. Costing $0.554 billion,
these items accounted for 35.42% of total food import bill.
Overall, the import of machinery group declined by 25.2%, although
it continues to constitute the highest import bill $1.803 billion
or 23.19% for July-March (1997-98). The items in this group which
registered negative trend were power generating machines,
electrical machinery, aircraft, ship & boats, and agricultural
machinery. This may mean that the market is saturated with these
items. However, substantial increases of 51.8% and 50.2% were
registered in respect of imports of office machines including data
processing equipment, and textile machinery.
The country imported over 3.0 million tons of petroleum crude
during July-March (1997-98), 4.2% more than during the
corresponding period of last year. But in dollar terms, the import
bill on account of this item declined by 19.5% and in rupee terms
by 11.42%, thanks to drop in its world prices.
Another significant aspect of the imports is that the import of
rubber tyres & tubes increased by 11.68% during the period.
Connected with this is the decrease of 17.9% in import of rubber
crude. In other words, the local production in tyres & tubes is
declining under pressure of imports.
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980417
-------------------------------------------------------------------
Money market in liquidity crisis
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, April 16: A severe liquidity crunch in the short term
money market has pushed call rates up to 18 per cent and forced the
banking system to borrow overnight funds from the State Bank.
On Thursday call rates oscillated between 17.95 and 18 per cent and
the inter-bank market saw a discounting of more than Rs 4 billion.
This amount of discounting was less than half the average
discounting during the last two weeks as an inflow of Rs 5.1
billion had partly eased off the borrowing pressure. The inflow was
due to maturity of short term federal bonds sold at a previous open
market operation. On Wednesday a discounting of Rs 10 billion had
taken place.
Short term money market normally remains tight at the end of every
quarter of the fiscal year because of outflows from the system on
account of debt payment and settlement of import bills etc.
The close of the first quarter of the current fiscal year also had
its impact on the market but this time two other factors also
siphoned off excess liquidity from the market.
"The crisis started early this month with the remittance of $170
million by Hubco," said treasury manager of a foreign bank. This
prompted many leading exporters to sell dollars in ready market as
the price of the greenback had reached the highest point in the
official exchange rate band of Rs 44.05Rs 44.49. "As a result
banks spent most of their ready funds for buying the dollars which
rendered them short of rupees," the banker explained.
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980418
-------------------------------------------------------------------
Proposals given to PM: Economists want tax base widened
-------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, April 17: Prime Minister Nawaz Sharif chaired a high-
level meeting here on Friday, which reviewed the prevailing
economic situation in detail and called for taking early measures
to achieve the economic stabilization and restructuring programme
in the country.
Informed sources told Dawn that the meeting, which was attended by
four federal ministers, Deputy Chairman Planning Commission, three
ministers of state and number of top independent economic experts,
have stressed the need for removing existing bottlenecks in the
system. Ministers of finance and commerce and Deputy Chairman
Planning Commission Dr Hafeez Pasha gave the overview of the
economy and expressed their satisfaction over it by saying that
things have improved a lot compared to the last year when the
government took over.
However, sources said the private experts who included former
minister for finance Dr Mahbubul Haq and a New York-based Senior
Executive of the Citibank, Shaukat Aziz did not believe that enough
has been done to achieve economic stabilization.
They said that more efforts were required to broaden the tax base,
impose effective agricultural tax system and to check growing
corruption in Pakistan.
Sources said that Dr Mahbul Haq particularly talked about the
documentation of the economy in the absence of which, he did not
believe the government could get desired results.
Sources said the participants heard the point of view of former
minister for finance with great interest. But the prime minister
was more enthusiastic about the views of Dr Haq and agreed with him
that without having the full documentation of the economy, nothing
could be achieved.
Dr Haq said that low revenues were the biggest problem which needed
careful attention of the government. He said social sectors were
not being provided adequate annual allocations with the result
there was no real growth in education, while health and other
sectors were also suffering.
At this stage, Chairman Central Board of Revenue (CBR) Moeenudin
Khan told the participants that work on the documentation of the
economy has started and that the issue was a part of the
restructuring plan of the organization. He then referred to CBR's
plan to appoint private investigating agencies to help locate
hidden assets and tax evaders.
Sources said that Khan also told the meeting that he would achieve
positively the revised annual revenue target of Rs 305 billion at
the end of the current financial year. Sources said that Senior
Executive of the Citibank Shaukat Aziz when invited to give his
view, called for achieving early economic stabilization and the
restructuring programme.
He also said that real efforts should be made to discourage
corruption. He was of the view that the banking system should also
be improved and that the private sector should be encouraged by
providing it a required loaning.
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980416
-------------------------------------------------------------------
Sale of govt land to encourage small units
-------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, April 15: The Privatization Commission has decided to
hire land management consultants and land evaluators to sell the
government's property worth over Rs 30 billion.
Informed sources told Dawn here on Wednesday that the Privatization
Commission has worked out a detailed plan to auction government's
land by developing plots for small industrial units.
The purpose, they said, was to help undertake small scale
industrialization process throughout the country. In this regard a
decision has been taken to have a comprehensive land policy to
auction government's property. And the job, sources said, will be
accomplished by hiring land management consultants and land
evaluators.
The PC has also proposed the development of a vendor industry and
auto market by auctioning government land specially in bigger
cities. The idea was to offer plots, measuring about 600 yards or
one kanal to small businessmen to help establish their industries
with a view to encourage grassroots industrialization. And as a
first a step, 250 kanal land of Pakistan Engineering Company (PECO)
at Badami Bagh, Lahore will be sold. Sources said that this land
has the value of about Rs 600 million.
Similarly, a decision has been taken to later auction another PECO
unit at Kot Lakhput, Lahore which has 93 acres of land and could
fetch about Rs1 billion. The entire machinery of PECO at Badami
Bagh has been shifted to PECO Kot lakhpat in order to sell the land
as early as possible.
Sources said that the PC would soon advertise for hiring Chartered
Surveyors along with land management consultants and land
evaluators. Initially it planned to higher about 20 such experts.
"Since the industrial sector is now left with leftovers which may
not give a good price to PC, decision has been taken to auction
huge land of the Pakistan Railways, Sindh Engineering, and other
public sector corporations", said an official. "We need a fiscal
space to encourage the setting of small and medium scale industries
in Pakistan", he said adding that emphasis will also be laid to
develop cottage industry through the sale of the government's land.
Sources said that the PC was now to privatize 30 industrial units
which include loss making and slightly profit making enterprises,
beside bigger entities like Pakistan Telecommunication Company
Limited (PTCL), Pakistan International Airlines Corporation (PIAC),
Sui Southern and Sui Northern, duty free shops etc. A few
Nationalized Commercial Banks (NCBs) and Development Financial
Institutions (DFIs) were also to be privatized.
However, sources said that the deadline for privatizing banks and
DFIs and State-Owned Enterprises (SOEs) by June this year was not
likely to be met.
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980418
-------------------------------------------------------------------
Tea prices fall by Rs25-30 per kg
-------------------------------------------------------------------
Aamir Shafaat Khan
KARACHI, April 17: The wholesale prices of imported tea (loose)
have declined by Rs 25-30 per kg in the markets following the
reduction of 20 per cent import duty i.e. from 45 to 25 per cent in
the second week of March.
An importer in the Jodia Bazar said that an imported tea, which was
selling at wholesale price of Rs 260-270 per kg in the first week
of March, is now available for Rs 240-245 per kg.
The tea of average quality now carries a wholesale price of Rs 205-
210 per kg compared to Rs 230-235 per kg.
The retail side is yet to see any decline in the market but
wholesalers say that it will take at least a week to pass on the
benefit of price cut.
An importer said the cost of import has now reduced by 27 per cent
as the cumulative taxes and duties come to 52 per cent of total C&F
value after the reduction in import duty compared to 79 per cent
when the duty was 45 per cent.
Similarly, the average landed cost, he added, is now estimated at
$2.50-2.85 per kg compared to March first week's price of $3.30-
3.50 per kg depending on the brand.
However, the much expected price fall from the tea packers
including a multinational is yet to be seen. A leading packer said
that the company is engaged in working out the actual impact which
is to be passed on to the consumers.
He anticipated a price cut of Rs 2-4 on a 250gm packet in future
which would not represent a 20 per cent duty reduction.
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980414
-------------------------------------------------------------------
Southern Region collects Rs17.50bn income tax
-------------------------------------------------------------------
Parvaiz Ishfaq Rana
KARACHI, April 13: The Southern Region of Income Tax, Karachi has
managed to collect Rs 17.50 billion or 61 per cent of the revised
target of Rs 27 billion during first three quarters (July to March)
of the current fiscal year.
According to official figures made available on Monday, the
Southern Region has made higher collection in all categories of
direct taxes except import-related taxes which stood short by Rs
508 million or 7 per cent less than that of a corresponding period
of last year.
"Presently our concern is over poor collection of import-related
taxes, on which the department has no control, as their collection
is directly linked to the volume of imports which has registered a
substantial decline during this period," said an official of the
region.
"We are doing well in other areas of direct taxes and are sure to
achieve the targets, and if any setback comes it would only be due
to lesser collection of taxes on imports," he further explained.
Historically, he said that tax collection during last quarter
accounts 40 per cent of the entire target.
Revenue collection on account of import-related taxes constitutes
45 per cent of the total collection of the Southern Region.
Consequently, even a small percentage fall in collection in this
account makes a lot of difference for the region.
Tax collection on imports during July-March stood at Rs 7.405
billion or 7 per cent lesser than that of last year when the
collection was Rs 7.913 billion.
Giving other details the official said that up to March 31, the
region collected Rs 16.4 billion on account of income tax as
against Rs 15.8 billion during the same period of the last year.
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980414
-------------------------------------------------------------------
State Bank relaxes Prudential Regulations
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, April 13: The State Bank of Pakistan has extended by one
year up to 30th June, 1999 the deadline set for the borrowers to
match their current assets and current liabilities for seeking bank
loans. On Friday, the SBP had reduced from 25 to 20 per cent the
bank provisioning against sub-standard loans i.e. the loans whose
principal or mark-up/interest has been overdue by 180 days or more.
The deadline has been extended through an amendment in one of the
prudential regulations regulation no 5. This and some other
changes and additions in the prudential regulations are contained
in a SBP circular issued on April 11.
The circular says banks would ensure that the current assets and
current liabilities ratio of the borrower is 0.9:1.0 up to 30th
June 1998, and 1:1 from 30th June 1999. Earlier the borrowers were
supposed to maintain these ratios from 30th June, 1997 and 30th
June, 1998 respectively.
The circular does not say what ratio the borrower would maintain
between 1st July, 1998 and 29th June, 1999 but a SBP spokesman told
Dawn 0.9:1.0 would be the minimum required ratio during this
period.
The circular retains the debt equity ratio intact at 60:40 for
issuing fresh long-term debts "provided the differential between
required and existing ratio is made good during the extended period
i.e. upto 30th June, 1999." In other words no bank would issue
long-term debt with 60:40 debt equity ratio unless the borrower
either reduces debt or increases equity to make the bring the
present debt equity ratio to 60:40 level.
Previously the borrowers were supposed to inject during each year
1995-96, 1996-97 and 1997-98 "an amount equal to one third of the
difference between the required equity and existing equity." This
means that the borrowers have been given one-year extension in the
deadline set for them to correct their present debt equity level to
make it 60:40.
Other rules mentioned in prudential regulation no 5 remain
unchanged.
The circular also gives one year more to the borrowers to inject
additional equity to qualify for seeking fresh or additional credit
beyond their borrowing limit of 10 times of the capital and
reserves. "Total accommodation availed by a borrower from
banks/financial institutions may exceed 10 times of the capital and
reserves (free of losses) of the borrower provided the borrower
injects additional liquidity in the extended period," says an
amendment in prudential regulation no. 4. It says the facility may
be availed of till 30th June, 1999.
Previously the borrowers were supposed to inject during each year
(1995-96, 1996-97 and 1997-98) an amount equal to one third of the
difference between the equity prescribed by this regulation and the
existing equity.
Senior bankers reached by Dawn said the one-year extension in the
deadline set for the borrowers for maintaining a matching debt
equity ratio is aimed at creating more avenues for lending by the
banks. They said an equal extension granted for correction in the
debt equity ratio of the borrowers is also aimed at facilitating
the banks to offer more credit. The twin measures would boost
private sector lending and enable the banks to offer help in
revival of sick industries.
The circular has also amended prudential regulation no 2 to exclude
certain obligations of the banks from their contingent liabilities.
The circular says obligations under letters of credit and letters
of guarantee to the extent of cash margin retained by a bank would
not fall in its contingent liabilities. It further says that
letters of credit or guarantee issued on behalf of the federal or
provincial government established through the State Bank of
Pakistan would also not constitute contingent liabilities of the
bank provided payment against the said letters are guaranteed.
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980416
-------------------------------------------------------------------
Use of natural gas stressed in new policy
-------------------------------------------------------------------
Reporter
KARACHI, April 15: In view of the mounting oil import bill the
government has formulated a new fuel strategy under which emphasis
would be more on the use of natural gas resources as compared to
oil.
The new fuel strategy would focus on building new hydel projects on
priority basis besides taking measures for optimum use of Thar coal
reserve, increasing use of natural gas, accelerate search for oil
and gas besides extracting optimum capacity of the existing
resources.
This was stated by Federal Petroleum Secretary Dr Gulfraz Ahmed at
the concluding session of the two-day energy seminar organized by
ABN AMRO Bank and Financial Post on Wednesday.
He emphasized that profitability of oil companies would not be
affected by the new policy. While dealing with Pakistan's oil and
gas requirements he said that 38 per cent of the country's fuel
requirements could be met from natural gas.
He said the government would speed up exploration of natural gas
because the oil import bill, which had crossed $2.5 billion during
1996-97, had become a major burden on the country's resources.
He stated that during 1996-97 Pakistan imported about 6 million
tons of oil out of which 45.5 per cent was used for transport
sector and 32.1 per cent was consumed by the power sector. The
traditional source was not sustainable, he added.
Dr Gulfraz said gas was not only a cheaper source of energy but
also environment friendly and in the next century there would be a
phenomenal increase in tapped gas reserves in the region.
He said the government was also working out a strategy of
encouraging new power projects to shift from oil to natural gas.
"Natural gas has indicated a five per cent growth rate annually and
we don't see any reason why this trend will not continue," he said
adding there would be major gas discoveries within the next two to
three years.
He said the country would also benefit from import of natural gas
from the Central Asian countries through pipeline stretching upto
2000 km.
Pakistan, he said, would sign an agreement with Shell at Islamabad
on Thursday for exploration of oil and gas in the Indus delta area.
He stated that the agreement would be in accordance with the
Petroleum Policy of 1997 which aimed at increasing indigenous
energy reserves.
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980413
-------------------------------------------------------------------
IPPs ready to reduce tariff conditionally
-------------------------------------------------------------------
Ihtasham ul Haque
THE INDEPENDENT Power Producers (IPPs) have offered a "solution and
a way out" to their growing differences with the government over
the issue of electricity tariffs by proposing that they should be
allowed to export power to India.
The IPPs are believed to have informed the government that they are
also ready to reduce their tariffs from 6.5 cent per unit to 4.5
cents which was more than 30 per cent, provided they are permitted
to directly import fuel oil for their power plants in Pakistan.
There have been a number of secret meetings between government
officials and the representatives of the IPPs during the last few
days but without any result.
The IPPs in the first place reportedly refused to lower their
tariffs and said it would adversely effect future foreign
investment in Pakistan, in case agreements were cancelled.
In this behalf they repeatedly referred to the recently concluded
visit of the high officials of the US Overseas Private Insurance
Corporation (OPIC), US Import and Export Bank (Ex-Im), and the
American Development Agency, which reportedly point blank told the
government officials that it was unacceptable for them to revise
power tariffs by having any modification in the Power Purchase
Agreements (PPAs).
Two options
However, insiders say that the representatives of the IPPs have
offered two options: (a) allowing them to export power to India and
(b) permitting them direct import of fuel oil.
With the IPPs demand to allow them to export power to India, a
debate is said to have started within the government, with some
senior officials favouring the idea. They said when IPPs export
power to India, nobody would raise any objection as to why was
being done specially when India had not resolved the Kashmir
dispute.
"I think it is a viable solution which could save both the
government and the IPPs," said a source who believed that
electricity being generated by the IPPs should be exported to India
which will provide funds to the government in the shape of duties
and will eventually help run WAPDA efficiently.
However, the government seems reluctant to allow the IPPs to
directly import fuel oil for their plants.
The issue of what the government usually terms "high and
unjustified power tariffs has been debated many times in the ruling
PML party and in Prime Minister Nawaz Sharif's kitchen cabinet
where most of the members favoured cancelling of agreements with
the IPPs to save WAPDA. But Minister for Finance Senator Sartaj
Aziz and Minister for Water and Power Raja Nadir Pervaiz have
reportedly called for adopting a cautious approach and opposed
unilateral cancellation of agreements.
However, they avoided to say any thing in public unlike Minister
for Health Javed Hashmi who said the other day that the government
has decided to scrap agreements with the IPPs.
His statement invited a sharp reaction among the donor community
after which Mr Sartaj Aziz had to say that there was no such
proposal in the offing. Nevertheless, he said that action against
some of the IPPs was likely to be taken for having their plants
commissioned without following certain procedure and that they had
committed gross irregularities.
The finance minister also does not rule out the possibility of
invoking US Foreign Corrupt Practices Act against at least two of
the IPPs for not adhering to the procedure and got their plants
commissioned by offering commission and kickbacks.
Insiders said that the immediate reason for the government to
become too jittery was when it had to pay off $170 million to IPPs
on account of selling their power to WAPDA.
Second tranche
The IMF had just disbursed the second tranche of $180 million, out
of $1.6 billion ESAF-EFF and extended Fund agreements. And as soon
as this money reached the State bank, the next day the government
had to make this payment to the IPPs.
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980418
-------------------------------------------------------------------
Stocks end with clipped gains, decline resisted
-------------------------------------------------------------------
Reporter
KARACHI, April 17: Stocks on Friday reacted modestly as weakness of
pivotals spilled over to other counters but larger decline was
resisted thanks to strong support at the dips by some foreign
investors.
The decline was largely led by market leaders, notably PSO, PTCL,
Hub-Power and ICI Pakistan, which came in for active profit-selling
at higher levels.
But most of the price changes were extremely fractional and
reflected weekend selling rather than massive liquidation from any
of the leading brokerage houses.
The broader market, however, performed relatively weak as the
leading index shares finished with clipped gains, pushing the KSE
100-share index below the psychological barrier of 1,600 points.
It was last quoted at 1,595.13 points as compared to 1,603.16 on
Wednesday, reflecting the relative weakness of PTCL apparently on
stray foreign selling.
The market capitalization also suffered a contraction of Rs 2.553
billion at Rs 439.120 billion as compared to Rs 441.353 billion on
Wednesday as highly capitalized shares showed fall.
Although the current tariff row is heading towards its logical
conclusion as foreign sponsors of power units have put forward
their own conditions to cut rates, investors decided to take
profits in pivotals among them apparently to buy them at the lower
levels next week, dealers said.
"The market could witness a renewed buying euphoria next week on
prediction of a massive inflow of foreign buying under the lead of
US investors," analysts said.
They based their assessment on the recent US official
pronouncements hinting at increased investment and new trade
relations "beyond the single-agenda perceptions."
"The US investors might not come that way, the market has its own
reasons to behave orderly after the current diffusion of tension
between the ruling elite," they added.
Shell Pakistan led the list of gainers, up Rs 14.00 at Rs 308.00 on
heavy buying after the news that its management has been granted
concession for off-shore oil drilling along the coastal areas.
Engro Chemicals followed it, rising by Rs 5.00 to Rs 76.30.
Lever Brothers came in for renewed selling and was marked further
down by Rs 7.50 at Rs 1,597.00 and so did Escort Bank, falling by
Rs 8.35. PSO, Mohib Textiles, Southern Electric and Reckitt and
Colman also showed modest decline ranging from Rs 1.05 to Rs 1.10.
On the other hand Paramount Modaraba, Fidelity Bank, East-West
Insurance, Sapphire Textiles, Star Textiles and some others came in
for active support, rising by one rupee to Rs 1.50.
Volume figure showed a modest expansion at 52 million shares as
compared to previous 47 million shares. Out of the 162 actives, 71
shares fell, 48 rose with 43 holding on to the last levels.
The most active list was again topped by PTCL, off 35 paisa at Rs
31.45 on 28 million shares, followed by ICI Pakistan, easy 50 paisa
at Rs 17.65 on 12 million shares, Hub-Power, lower 40 paisa at Rs
46.20 on 8.270 million shares, FFC-Jordan Fertilizer, down 20 paisa
at Rs 17.80 on 1.069 million shares, and MCB, up 90 paisa at Rs
34.25 on 0.566 million shares.
Other actively traded shares were led by Southern Electric, off Rs
1.10 on 0.449 million shares, followed by Reliance Insurance,
unchanged on 0.200 million shares, Sui Southern, easy five paisa on
0.156 million shares, and Searle Pakistan, lower five paisa on
0.149 million shares.
DEFAULTING COMPANIES: Three shares, Schon Spinning, Al-Qadir
Textiles and Sunshine Cloth came in for trading and accounted for
2,500 shares including 1,500 shares in Sunshine Cloth.
-------------------------------------------------------------------
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980412
-------------------------------------------------------------------
Storming of the Supreme Court-3
-------------------------------------------------------------------
Ardeshir Cowasjee
SOON after receiving a notice from the Supreme Court summoning me
up to Islamabad to appear on March 25, where my statement in
connection with the November 28 storming of the Court was to be
recorded, one of our senior most journalists rang to say that what
he could not tell me on the telephone he wished to come, pronto,
tell me in person.
He came and whispered that an Intelligence Bureau man had enquired
about my antecedents and those of my General Staff Officer-1 (G-1),
my fellow-columnist by avocation. The IB had been ordered to
compile files. Nothing new, I told my worried friend, they have
been preparing files on me since 1948, and my telephone remains
tapped. A new man has apparently fallen upon an old job.
This was filed away as a circumstance.
In the early hours of March 22, a man broke into my house, came
into my bedroom, and when I sleepily asked who he was and what was
happening, with hand held over his mouth, he ordered me to go back
to sleep. Switching on my beside light, I asked why, having awaken
me, he now wished me to sleep. He put off the light, hand still
over mouth, hoarsely whispered "Paisa, paisa." I had none, I said,
but he could take whatever pleased him, and depart. Patting his
midriff, he threatened, "Goli marega, goli marega." Go ahead, I
told him. An inquisitive man, he wanted to know how I eat without
money.My money is with my major-domo who feeds me. He could go
downstairs, and rob him if he could. He then pulled out my
telephone wire.
He rifled around the room, opening cupboards and drawers. Intrigued
by my hat boxes in one cupboard, he wanted to know what they
contained? My ceremonial Parsi pugrees, I told him. Take them. In
another cupboard were my panama hats. How many hats do you wear, he
asked? He fondled the CD player, the VCR, the receiver. He
inspected my camera, put it back. Fiddling about on my dressing
table, he picked up my gold signet ring and my watch, padded about
a bit, and then left.
Not a usual occurrence, but not that unusual in this city devoid of
law and order. The man was a junkie, I concluded, wanting money for
a quick fix. On second thoughts, he was far too clean for the
normal junkie, too well dressed, in a 'khadar' shalwar-kamiz. The
incident was filed away as a happenstance.
Whilst in Islamabad, I narrated this happening to my retired
friend, Khan Roedad Khan, the longest-serving interior secretary of
our country who glorified that office for nine years running.
Secure in his knowledge and giving me a severe look, he told me not
to take the matter lightly, it was an 'agency' intimidation ploy.
How 'unlightly' do I take it, I asked? Shall I double my guard and
oil my revolver?
Back in Karachi, after the March 25 hearing, due once again in the
Supreme Court on April 2, when a further lot of 'stormers' were to
give their statements, I prepared a second affidavit attaching
additional press cuttings in which names of the MNAs, the MPAs and
the PML stalwarts were mentioned as having been present at the
Court on November 28, and in which were printed photographs of
certain prominent 'stormers.' We worked on this on the evening of
March 31, prior to flying off to Islamabad on April Fool's Day.
Finishing late, my General Staff Officer 1 (G-1) left for her home
at around 2330. Going up the Shahrah-i-Iran towards the sea, just
short of the British High Commission, one takes a right turn to
enter the gate of the block of flats in which she lives. Halting at
the intersection, the lanes leading down to the Do Talwar
roundabout were clear. On taking the turn, to slightly double back
and drive into the gateway, came an almighty explosion, jostling
the creeping car to a halt just short of the driveway.
The left side of the car was in smithereens, shattered glass all
over the place. My G-1 got out of the car, leaving the engine
running, to find out just what had happened. A motor bike was lying
on its side in the middle of the road, with a man getting to his
feet. He walked over to the kerb and sat down. Before she could ask
him what the hell he was doing riding without a light and banging
her broadside, a hefty man strode out of the darkness, switched off
the car ignition and pocketed the key. In the meanwhile, the
apparent unhurt kerb-sitter lifted his shirt to rub his midriff.
Around it he wore a belt and a gun holster.
She requested the 'hefty' to kindly give her back her car keys so
that she could get the car off the road and into her compound. He
waved a plastic card at her, would not let her hold it to see
exactly what it was, said he was the law, lifted his shirt and
pointed to the gun holster he too wore. There was no reaction to
her complaint that the motor bike had no lights. He then walked
over to the man on the kerb and spoke to him.
After a few minutes, when the normal crowd had gathered, all
passing traffic having stopped to see the 'tamasha', the motor-
biker decided to lie down on the road and do a bit a moaning and
groaning. The 'heavy' used his mobile phone and called a police
mobile which duly arrived. My G-1's further requests for her car
key were refused, the 'heavy' handed it over to a uniformed
mobileman, mounted the mobile with the motorbike rider, informing
all present that he was taking him to hospital. Whilst all this was
happening, a few of G-1's neighbours arrived to help. One, a friend
of the former DC of District South (to our sorrow recently
transferred), raised him on his mobile phone. The cop was ordered
to relinquish the car key.
Not once was my G-1 asked her name, where she lived, or what had
happened. No lawmen present asked for her car papers, or driving
licence, or expressed the slightest interest in the event. No
questions, no hint of investigation. The motor-bike too was taken
away. The whole matter ended there, in the middle of the road in
the middle of the night. No queries, no follow-up, nothing. This
also was filed away as a coincidence, one of three within the space
of three weeks.
Now to less frivolous matters. The contempt of court cases
initiated by former Chief Justice Sajjad Ali Shah against Nawaz
Sharif and his apostles, Benazir Bhutto, columnists, authors,
publishers et. al., have been decided. To no one's surprise, all
have been let off. Three contemners, MNAs Khawaja Asif, Hamza
(ruling party), and Asfandyar Wali Khan (ANP) were found guilty but
not punished. The opposition politicians must be rejoicing. These
three they can have disqualified by filing references before the
Election Commissioner.
Nawaz Sharif's lawyer, S.M. Zafar, has boasted that the 500- page
judgment (which needs to be seriously analysed) is monumental,
historic. Would Law Minister Khalid Anwar please assure the people
that S.M. Zafar and others, who defended the legislators, have not
been paid, directly or indirectly, from the national exchequer.
Now, the most serious matter. The next hearing of the inquiry into
the storming of the Supreme Court by members of the ruling partly
is fixed for April 23. The Attorney-General and his officers tutor
the PML legislators and others summoned to testify before the
Court. Why? To his credit it may be said that at the hearing on
April 2, the Deputy Attorney-General was honest enough to admit
that summoning other PML members would produce no fruitful results
as they would all tell the same story they are law-abiding
citizens who hold the judiciary in the greatest esteem, they were
present in the Court on November 28 solely with the intent to
persuade the court-stormers to cease their dancing and chanting, to
leave the premises and uphold the sanctity of the honourable Court,
so on and so forth.
Lastly, to the man who relieved me of my watch and ring. The ring
has gone, melted down by now, no doubt. Many years ago in England a
burglar cleaned out the flat of King George V's jockey, Gordon
Richards. Richards wrote to the press, telling the burglar that he
can keep all the rest of his booty but would he consider returning
the gold cigarette case presented to him by the King, which bore
the engraving "George V, R.I." as it had great sentimental value.
The burglar obliged. Now, please, will my forty-year-old Vacheron
Constantin, specially made for me with loving care, shaped and
sized to fit my wrist. I will compensate him.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980418
-------------------------------------------------------------------
Another day, another circus
-------------------------------------------------------------------
Irfan Husain
LIKE a magician pulling out yet another rabbit from his hat, Nawaz
Sharif has produced his Khidmat Committees to the roll of drums and
the fanfare of trumpets.
But while we see the show and the shadow, we can discern no
substance. The difference between our prime minister and a stage
magician is that the latter only has to fool his audience for a
brief moment with his quick hands and glib tongue, while the PM is
trying to do so for the duration of his entire tenure. Well into
his second year of office, the artifice is wearing thin, and the
calls are getting louder. How long before the brickbats and the
rotten tomatoes?
Soon after he started enjoying wielding power, Zia declared that
henceforth, Pakistan would be "the laboratory of Islam". In the
same breath, he announced the imposition of Zakat, and the
establishment of zakat committees. These are still around despite
allegations of massive corruption, and the compulsory deduction of
this religious tax leads to withdrawal of billions from accounts
just before Ramazan every year. Tens of thousands have also
declared that they belong to Fiqh Jafria to escape this tax which
is above and beyond other secular taxes.
Since Zia's days, elected leaders have seen fit to impose a number
of weird schemes on us: there was the People's Works Programme, the
Nai Roshni Project, and the Yellow Cab Scheme, to name only a few.
We are still living with the biggest boondoggle of them all: the
siphoning off of development funds by our representatives for the
so-called "development" of their constituencies. These hare-brained
programmes have cost the exchequer billions; indeed, future
generations will be paying for them for years to come.
It would seem that our leaders are incapable of analysing our
problems, and then putting in the hard, sustained and focussed work
that the country needs. We don't need a genius to tell us that the
two crucial issues facing Pakistan today are population and
education. We must curb the former and increase the latter if we
are to survive and thrive; and if we don't, we will continue going
down the chute as we are today.
Unfortunately, neither area makes headlines, nor affords our
shallow politicians with photo opportunities. As a consequence,
both remain relegated to the back burner while all our meagre
resources are squandered on deserted motorways, F-16s that aren't
delivered, missiles and unwanted airports. Oh yes, we mustn't
forget all the written-off and unrecoverable loans Rs 140 billion
and counting that our politicians and their sidekicks have
siphoned off from nationalized banks, DFIs and cooperatives.
An idea of this government's attitude to the population problem can
be gauged by the fact that the 2010 document supposedly a
reflection of the Muslim League's vision for the future of the
country (if it can be accused of having such a thing), contains no
mention of it. And in his address to the joint session of
Parliament the President made no reference to it either. So
clearly, Nawaz Sharif isn't overly concerned that Pakistan has one
of the highest population growth rates in the world, and we now
number over 140 million, as against 35 million 50 years ago.
And as for education, we have the disastrous new education policy
before us in all its glory. Condemned by educationists and
newspapers across the country for its vacuity and lack of coherence
and vision, this is the best the ruling party could come up with,
despite the presence of perfectly workable documents that had been
prepared in the past.
Or perhaps this focus on fanfare and hoopla is an admission of
failure by a leadership that realizes that it has no answers in the
problems that face us today. And thus, we have the Ghauri and the
Elite Force to divert us from the magnitude of the bankruptcy we
face in every sphere of activity today.
In my more pessimistic moments, I fear we will never get a serious
sensible government that just gets on with the job at hand, rather
than wasting its time and our money on frivolous and futile
exercises. Take the Elite Force as the latest example: We already
have a plethora of police, security and paramilitary forces
functioning in the country, usually ineffectively.
How will the creation of this new group make any difference? We
have been told by the IG of Punjab Police that among other
facilities being created for this force, a swimming pool will soon
be built for them. Now I would never begrudge the Elite Force this
luxury, specially as so many terrorists swim to our shores. Next, I
suppose we will have to construct a ski lift for them.
Almost simultaneously, the khidmat committees have been established
to function as a sort of parallel government. My experience has
been that the more agencies you create, the rate of corruption
increases, while the speed at which papers move decreases. And what
happens if and when local bodies elections are held? I can see
endless conflicts between the elected councillors and the unelected
committee members. And in between these battles for turf and power,
the lower level bureaucracy will be squeezed for more graft.
It is this addle-pated reflex to find a quick fix in order to avoid
solid hard work that has led to so many of our problems. The fact
of the matter is that the laws are there, and the machinery is
there to enforce these laws. What is lacking is the political will
to implement laws and rules across the board and without fear or
favour: If certain political parties harbour terrorists among their
ranks, it is unlikely that the Elite Force will move against them
if they are in alliance with the government of the day. Similarly,
if our leaders refuse to stop at red lights, the police will start
turning a blind eye to other infractions; it is pointless to create
yet another police force to enforce rules that are not imposed
uniformly.
The next time I go to a magic show, I plan to take some rotten
tomatoes along.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980413
-------------------------------------------------------------------
Implications of the missile test
-------------------------------------------------------------------
Lt Gen (retd) Talat Masood
THE government's announcement about the successful launching of the
medium range missile, Ghauri, was too sketchy to comprehend its
full impact. Furthermore, with memories still afresh about the
claims regarding the total indigenization of the 'Khalid' the main
battle tank and the publicity surrounding it, one would prefer to
proceed with caution rather than be overtaken by euphoria.
Nevertheless, from what has been reported about the test it appears
to be a big leap in Pakistan's efforts at building its indigenous
defence capability, for which the team of engineers and scientists
led by Dr A.Q. Khan, deserves to be congratulated.
The proto-type development of Ghauri is Pakistan's response to
India's fast developing missile programme. It is an indication of
the government's firm resolve to keep in mind its genuine security
needs and not be outdone by the growing menace of India's missile
race. Pakistan's missile test, irrespective of the fact whether it
was of the entire or partial systems, underscores the fact that
with requisite political will, national resources can be mobilized
to safeguard the security interests. Current international
environment also compels Pakistan to rely mostly on its own
resources for its security, rather than seek vague assurances from
major powers.
In all probability the birth of this medium range missile will
remain shrouded in secrecy and its precise capabilities may never
be made public owing to its security classification. It would be
years, if at all before the nation would know of its development
history. Not unexpectedly, the Indians and a few in the US have
falsely accused China of transferring its technology for this
project. Nonetheless, one thing is abundantly clear that the tight
restrictions of the Missile Technology Control Regime (MTCR) would
have prevented Pakistan from receiving any form of systematic
foreign assistance.
This stands in sharp contrast to the easy access provided to India
during the initial build-up of its missile and space programme.
India received substantial assistance to develop the relevant
capabilities from the former Soviet Union, the US and France under
the cover of civilian space programmes. Israel has a very active
programme of missile development and their current Arrow project,
which is an advanced anti-tactical ballistic missile, is being
developed with American money and technology.
Ghauri missile is a significant technological achievement because
at ranges beyond 1000 kms technical complexities begin to multiply
exponentially. At long ranges guidance technology requires greater
precision and rigorous performance specifications have to be
maintained to cater to the re-entry problems. Medium and long range
missiles with large pay-loads (500 kgs and above) also require high
thrust engines, whether solid propellants or liquid-fuelled, which
are not easy to develop. It is possible that we may have taken
another route to avoid the more sophisticated one by clustering
several Hatf engines.
In any case, whatever technical solution was adopted for the
propulsion of the missile, it seems to have performed well. The
credit also goes to our engineers and scientists for resolving the
related complex problem of systems integration. Above all, the
designing, development, and the organizational and managerial
expertise associated with the fabrication of a complex weapon
system like Ghauri is no mean achievement when viewed in the
context of Pakistan's weak industrial and technological
infrastructure.
The test of the Ghauri missile has some lessons for the world so
far as Pakistan's quest for technology is concerned. The forward
march of technology is an irresistible process which no country can
impede by enacting any form of legislation. The spread of
technology has a dynamics of its own. No country, however strong
can devise an effective barrier to the spread of scientific and
technical knowledge, which refuses to recognize the national
boundaries.
The MTCR in its present form is not designed to protect the
legitimate security interests of Pakistan or for that matter, of
the developing world. At best what the MTCR and other similar
treaties can do is to retard the process of technology transfer.
But at the same time they encourage countries which are living in
the shadow of hegemonic powers to develop capabilities to thwart
aggression.
The spread of technological capabilities is inevitable. With the
passage of time more and more countries will acquire the capability
of doing what is currently the monopoly of a few. In fact,
Pakistan, in spite of its limited technical infrastructure and
economic constraints, has invariably benefited in its efforts
towards self-reliance when it was faced with arms embargoes.
When the developed countries continue to rely on the missiles as a
component of security, it looks strange on their part to preach
restraint to others. It is important that the US and the other
major military powers undertake deep cuts and move towards a
missile non-proliferation regime to slow down the spread of
missiles in the crisis-ridden areas of the world. The development
of missiles by Pakistan, apart from countering India's threat are
also a substitute, albeit a less effective one, for advanced strike
aircraft. Most combat aircraft are capable of achieving greater
range and accuracy and carry significantly larger amounts and more
diversified types of weapons. The denial of F-16s to Pakistan by
the US and the exorbitant costs of the French Mirages may have been
another major motivating factor in the development of the missiles.
For Pakistan, the development of missiles has a profound political
impact both at home and abroad. Pakistan's missile programme
represents its efforts to counter India's hegemonic ambitions and
at the same time promote technological know-how in the Muslim
world.
The medium range missiles have to be highly accurate in order to be
effective with a conventional warhead. In the absence of any
official information, it can only be surmised that the drift rate
of Ghauri is less than 0.1 per cent. A missile system armed with a
conventional warhead should have an accuracy matching the lethal
radius of its warhead.
The cost of the missile is another critical factor which should
determine whether a missile is suitable in a conventional or
nuclear role. For instance, it would hardly make sense to lob
conventional warheads as far as 1500 kms if they cost around, say
Rs 50 million a piece. The same logic will be equally applicable in
respect of the intermediate range Indian missile, Agni. Estimates
by analysts indicate Agni's price to be around eighty to a hundred
million rupees a piece. One could argue that militarily and cost-
wise intermediate range missiles are justified only if these are
armed with nuclear warheads, notwithstanding that developing these
is a major undertaking and may take several years owing to
miniaturization and associated technical problems.
Before starting their ambitious integrated missile programme in
1983 the Indian leadership should have realized that they were
sowing the seeds of a dangerous arms race in the region. If
unchecked, the potential of both countries to create significant
mutual damage will only get worse. As India and Pakistan expand
their missile and nuclear arsenals, it will become more difficult
for them to delink national security from ballistic missiles.
It seems as if the clod war with renewed zeal has begun all over
again in this region, or conversely one could argue that it had
never ended, in the first place. India views its comprehensive
nuclear and missile programmes central to its global aspirations
and military modernization. Pakistan tries to keep up with its
adversary in this race and stands ready to match India's nuclear
and missile related activities.
However, most unfortunate is the fact that both are pursuing
policies which are unrelated to their current priorities which
should have been fighting poverty, illiteracy and lawlessness and
turning their economies around. After all, was there any meaningful
military need for India to proceed with the development and forward
deployment of the Prithvi missiles? It is really sad that the case
for Prithvi was being advanced by the Indian hawks at a time when
the prospects for peace were emerging on the horizon. Was India
justified in making preparations last year to conduct a nuclear
explosion in the Rajasthan desert? Similarly, does it serve
Pakistan's interests to engage in an arms race? North Korea has
perhaps the most capable missiles in the Third World but it is on
the brink of falling apart. These are serious questions and need
well thought out answers.
It is time for the leaders of India and Pakistan to reflect as to
whether they want to continue on the dangerous path of a nuclear
and missile race or move towards reconciliation and resolution of
their disputes in a peaceful manner. Both countries must resume the
stalled dialogue seriously and address the underlying tensions.
Concurrently, they must also work out a regional agreement that
verifiably controls advance weapons which they hold in their
inventories and have the potential to manufacture.
===================================================================
S P O R T S
===================================================================
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980413
-------------------------------------------------------------------
British Open Squash: Jansher's defeat an ominous pointer
-------------------------------------------------------------------
A. Majid Khan
Pakistan's unprecedented 16-years-old domination in the prestigious
British Open Squash finally ended on April 5 at Birmingham
(England) when Jansher Khan, defending the title for the seventh
successive year despite knee problem, was comprehensively beaten by
Peter Nicol, the first Scotsman ever to win the trophy since the
championship was instituted 68 years ago in 1930.
Left-handed Peter Nicol, the runner-up to the Khan in the 1997
British Open final a five-game battle that lasted for two hours
26 minutes took only 50 minutes for an imposing 17-16, 15-4, 15-5
victory over an unfit Jansher Khan. He is suffering from a torn
ligament in his left knee since the Super Series event in February
this year.
Born in Peshawar on June 15, 1969, the Khan had ousted 25-year old
Peter Nicol in the 42-minute semi final of the eight -man super
series in straight games but at the end of the series he developed
trouble in both his knees. An orthopaedic surgeon of Birmingham had
advised him to get his left knee operated while his right knee
needed exercise.
Disregarding this medical advice Jansher competed in the British
Open as skipping the first super series of the 1998 event would
have brought his present world number two ranking lower. Jansher's
entering the final was itself surprising as both world number three
Jonathan Power and world number five. Ahmed Barda were beaten. The
title holder was as such up against Australia's world number ten
Den Johnson and had to struggle hard for a 3-1 victory lasting one
hour and eight minutes, before reaching the final for the 8th time.
Peter Nicol fulfilled his ambition to be crowned as ow champion of
the British Open after dislodging Jansher Khan from world number
one ranking three months back. Pakistan's pride Jansher Khan had
remained on top of the world ranking for four and a half years but
his bad patch had started last year when he suffered four defeats
against Peter Nicol.
The second super series - AL-Ahram International is scheduled
from May 21 at Cairo and holder Peter Nicol is certain to defend
the title, the first major title he won last year by defeating the
then defending champion and top seed Jansher Khan by 31.
It is not yet known if Jansher Khan would be undergoing knee
operation before the Al-Ahram International or after the end of the
tournament as he has yet to make it public. His failure against
superfit Peter Nicol indicates that the Khan might prefer to get
his knee operated after which were need at least one month's
complete rest for full recovery. The mystery surrounding the
operation issue of Khan must be unravelled to remove the anxiety of
his well-wishers in Pakistan.
According to the PSA, the 1998 tour calender resumes in August. The
second part of the super series included six events Pakistan
Open, Hong Kong Open. Kuwait open, Egyptian Open Qatar
International and World Open.
Great concern is being expressed at the emergence of Peter Nicol
and a host of other strong challengers from England and Australia.
Doubts had been expressed about Pakistan's abilities to dominate
the international squash following the decline of the legendary
Jahangir Khan (holder of ten successive British Open titles.
Similar fears are being aired at Jansher Khan's repeated failures,
his eight world open triumphs notwithstanding. At the moment we
find no potential players in Pakistan to the emerging challenge.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980416
-------------------------------------------------------------------
Dutch coach starts training of probables
-------------------------------------------------------------------
Sports Correspondent
LAHORE, April 15: In a surprising move, the Pakistan Hockey
Federation (PHF) has acquired the services of a Dutch penalty-
corner drill specialist Toon Siepman who reached here on Monday
night to train the Pakistan senior team which is defending its
title in the World Cup to be held at Utrecht (Netherlands) in May
this year.
Toon Siepman watched the Pakistani players in action in the evening
session of the training camp which is in progress at the National
Hockey Stadium since April 10.
Talking to journalists, Toon Siepman who is the coach of Holland's
A Grade hockey and has trained the Dutch penalty-corner specialist
Bram Lomans said that he would only give training to the players in
the offensive department of the penalty-corner and not in
defensive.
To a question, Siepman said that he was hired for three weeks. "The
time is short and a challenging task is ahead, but I can do lot of
work", he said.
The lanky Dutch coach said that he would impart training of
penalty-corner conversion in both sessions of the camp.
Siepman said that he would concentrate on all full-backs of the
training camp and not only on Sohail Abbas, an up-and-coming
penalty-corner specialist of Pakistan.
However, Sohail Abbas is with the Pakistan Whites team which is in
Kenya after winning four nation tournament in South Africa this
week. Besides Sohail Abbas, 11 players of the whites team are among
the probables of the Pakistan senior camp.
The team is arriving on April 16 (Friday). Sohail Abbas and others
are not able to join the camp before April 18. The PHF secretary
Col Mudassar Asghar while commenting on hiring Toon Siepman said
that it was a part of PHF preparation programme of the team for the
World Cup.
He hoped that the Dutch coach would remove the shortcomings of the
team in the penalty-corner drill.
Except for Hyder Husain, who is not well, the remaining 22
probables attended both the morning and afternoon sessions of the
camp which resumed on Tuesday after a day's rest.
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