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DAWN WIRE SERVICE
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Week Ending : 19 December 1998 Issue : 04/50
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Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS
===================================================================
NATIONAL NEWS
+ Development of navy topmost priority: PM
+ US asks India and Pakistan for restraint
+ US attack on Iraq condemned by Senate
+ Hearing of petition against invoking Article 245 put off
+ Altaf asks Mohajirs to prepare for long battle
+ New US visa interviews from this month
+ Paris Club has accepted rescheduling request: Dar
+ Pakistan not to demand interest on F-16s' money
+ Muttahida holding talks with PPP for alliance
+ PM's family faces court on �11m debt
+ $72m withdrawn on May 26 and 28, says SBP counsel
---------------------------------
BUSINESS & ECONOMY
+ Stronger rupee may affect export earnings
+ 'SBP has no control over forex spending'
+ Hubco chief, 6 others issued warrants
+ Bankers await SBP guidelines on euro
+ CBR campaign to register ST retailers
+ PIA sees Rs700m profit
+ Indonesia to buy 2.77 lakh tons of rice
+ NIT bid to forestall RPL move
+ $-euro reference rate to be set on 31st
+ Stocks show firm trend on buying in chemicals
---------------------------------------
EDITORIALS & FEATURES
+ Parasites Ardeshir Cowasjee
+ Gift of eyesight Irfan Husain
-----------
SPORTS
+ Pakistan go down fighting to South Korea
+ Railways win National women hockey 12th time
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NATIONAL NEWS
981219
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Development of navy topmost priority: PM
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Reporter
KARACHI, Dec 18: Prime minister Nawaz Sharif declared here on
Friday that the government attached topmost priority to the martime
development as it was vital to the defence of the country.
Speaking at the 70th midshipmen commissioning parade at the
Pakistan Naval Academy, he said navy's role was to defend the
maritime frontiers of the country, and the government would
continue to take steps for the modernization of naval fleet
irrespective of resource constraint.
Mr Sharif said that a glance at the security scenario around the
world, suggested that the post-cold war tensions had not subsided
in South Asia.
In this strategically important area, the unresolved issue of
Kashmir remained a flashpoint and continued to retard the
development of peace and cooperation.
"And until this issue is resolved in accordance with the accepted
international commitments, I cannot foresee any improvement in the
situation," the prime minister said and added: "We cannot,
therefore, lower our guard and must remain alert to any threat
while seeking solutions through peaceful means".
Though small in size, the Pakistan Navy was equipped with high
quality officers and motivated men, "which is the biggest force
multiplier when the chips are down", the prime minister said while
referring to the Quaid's famous address to the officers of the
Pakistan Navy in 1948.
He said he was gratified to see the young officers from the
brotherly countries of the UAE, Qatar and Palestine in the
commissioning parade, saying it was most heartwarming to see them
shoulder to shoulder with their Pakistani brethren.
He said the government would continue to extend assistance to
friends with whatever means, adding that the personal and
professional friendships formed during their training in Pakistan
would go a long way in further strengthening of mutual relations.
In his welcome address, the commandant said that 26 midshipmen form
Pakistan Navy and seven from UAE were being commissioned as sub-
lieutenants who had undergone professional, academic and general
training at Pakistan Naval Academy as well as on board PN ships.
He said besides providing a firm base in technical knowledge and
professional skills, special emphasis had been laid on the
personality development and character building of these young
officers at the naval academy.
Sub-lieutenant Sohail Ahmed was given Quaid-i-Azam gold medal,
chief cadet Captain Mohsin Raza was awarded Chairman JCSC Gold
Medal and midshipman Mohammad Saeed was bestowed with the PNA Dirk.
Sword of honour for best of all-round midshipman went to Kashif
Shamshad while Champion Squadron and Winner of Proficiency Banner
was given to Main Top Squadron.
Those present on the occasions included Sindh governor Moinuddin
Haider, naval chief Admiral Fasih Bukhari and federal ministers
Syed Ghous Ali Shah and Haleem Siddiqui.
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981218
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US attack on Iraq condemned by Senate
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Bureau Report
ISLAMABAD, Dec 17: Senate on Thursday through a unanimous
resolution condemning the US attack on Iraq and described it an
aggression against the Muslim world and humanity.
The resolution, piloted by Senator Mualana Fazal Muhammad, also
appealed to the UN Security Council and international community to
use their influence for getting this attack stopped immediately.
The original resolution contained the word "terrorism" for the US
attack on Iraq which were deleted to get the resolution passed with
consensus.
Earlier senators of all shades of political opinion made furious
speeches against the US. The rulers of the Islamic countries also
came under criticism for toeing the US line.
Some of the members were of the view that the US carried out the
attack on Iraq to divert the attention of American people from the
impeachment proceedings against President Bill Clinton.
"In August when Kenth Starr report of Lewinsky affair was being
presented in the House judiciary committee the US attacked
Afghanistan and Sudan and now when the impeachment motion has come
up the US attacked Iraq", Senator Iqbal Haider of PPP said.
Senator Aitzaz Ahsan said the attack should not have been carried
out without the prior sanction of the Security Council.
He said attack on civilian population, particularly when the two
countries were not engaged in arm conflict, was not justified and a
condemnable act.
Some members also appreciated the Iraqi people and Saddam Hussain
for courageously facing American aggression and braving economic
sanctions for the last seven years.
Senator of Pukhtoon Khawa Milli Awami Party Akram Shah said the US
was not against the Muslim world but all the sovereign nations.
He deplored that not a single Muslim country had so far condemn the
US attack on Iraq.
Senator Akram Zaki and former secretary general foreign affairs
said that the US attack was a clear violation of UN charter. UN
charter allows use of force only with the approval of SC, he said.
Chief of ANP Ajmal Khattak called US attack as a terrorism. He
noted that the unanimity shown by the House was very encouraging.
ANP Senator Qazi Anwer said the US attack should be condemned in
unqualified terms.
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981218
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More military courts being set up this week
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KARACHI, Dec 17: Prime Minister Nawaz Sharif on Thursday evening
presided over a meeting and reviewed the law and order situation
and the results achieved so far after the imposition of governor's
rule.
He also reviewed the pace of development and implementation of the
development schemes in Karachi. The trial of cases before the
military courts were also reviewed.
During the meeting on law and order, which was also joined by the
chief of the army staff, it was decided to establish two more
military courts this week and another four to six during the next
week so that cases being brought before these courts could be
disposed of expeditiously.
The PM expressed satisfaction over decline in major crimes like
murder, carjacking and extortionism.
The meeting also reviewed the situation about the supply of water
from the Hub dam to Karachi and approved a water supply scheme
which would cost Rs9,200 million. Under the scheme, water will be
supplied from the River Indus in case supplies from the Hub dam are
totally depleted in the wake of no rain.
The scheme will be completed in 10 weeks under the supervision of
army engineers.
Meanwhile, Mr Sharif, in a separate meeting with provincial
authorities at the governor's house, directed them to accelerate
operation against terrorists irrespective of their political
affiliation.
Later, talking to newsmen during his visit to district central, the
prime minister said that law and order situation in Karachi was
improving rapidly.APP
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981218
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US asks India and Pakistan for restraint
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Shaheen Sehbai
WASHINGTON, Dec 17: The US on Wednesday urged both Pakistan and
India to meet the nuclear benchmarks set by the international
community and exercise the utmost restraint in further missile
development, including flight testing.
"It is our understanding that India has not deployed nuclear
weapons (against Pakistan)," State Department spokesman Jamie Rubin
said when asked to react to Indian Prime Minister Vajpayee's
Tuesday address to the parliament on nuclear policy.
Vajpayee had ruled out any moratorium on fissile material
production, rejected restraints on the development of India's
research and development capabilities and discounted the
possibility of any agreement which placed India at a disadvantage.
In statements made in both houses of Parliament on the ongoing
Indo-US talks on the nuclear issue, Mr Vajpayee said India would
protect its independence in deciding its nuclear policy, but
indicated he also hinted at willingness to sign the CTBT.
"The present discussions with the US should lead to the conclusion
of CTBT before 1999," he said adding that flight testing of Agni
missile, currently under development, would be conducted fully in
accordance with established international practice.
Asked to comment on Vajpayee's remarks, spokesman Rubin welcomed
India's reaffirmation of a commitment to a September '99 signature
on the CTBT.
"There have been multiple rounds of discussion between us and the
Indians, and we have made some progress. We are looking forward to
continuing this dialogue in another round of talks in late January.
There are significant differences. We will be working to try to
limit the differences and expand the areas of common ground. We
want both India and Pakistan to meet the benchmark set forth by the
international community," he said.
Rubin, however, said it was necessary in democracies to build a
base of parliamentary and public support for important actions, and
"we welcome the fact that Vajpayee is in the process of building a
national consensus on no further nuclear testing and on India's
adherence to the CTBT."
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981216
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Altaf asks Mohajirs to prepare for long battle
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Correspondent
LONDON, Dec 15: Muttahida Qaumi Movement (MQM) chief Altaf Hussain
on Monday night urged the Mohajirs to prepare themselves for a long
battle to achieve their rights.
"Nowhere in the world any oppressed nation has achieved its rights
in five or 10 years' time. A sustained and long struggle has to be
waged for achieving the rights," Mr Hussain said while speaking to
MQM workers, doctors, engineers, students and intellectuals at his
party's international secretariat in London. "Even the Kashmiris
have not achieved their right to self-determination after the
passage of 50 years," he reminded them.
He briefed them about what he termed a three-pronged strategy of
the establishment to "isolate, criminalize and demoralize" the
Mohajirs to eliminate them. That was why, he said, the Mohajirs and
their representative party were not acceptable to the ruling class.
He said the struggle for freedom all over the world had been an
arduous task, and referred to the movements of Palestine, South
Africa and Kashmir to emphasize his point.
"Nelson Mandela and African people had to struggle for 50 years
(for liberation); the struggle of Yasser Arafat and Palestinian
people is also spread over five decades and Kashmiris have not yet
achieved their right to self-determination despite the passage of
50 years," he told his party loyalists.
Earlier, explaining to them why the establishment and the ruling
class were against the Mohajir community, Mr Hussain said the Urdu-
speaking people had freed themselves from the yolk of feudal and
capitalist system and had greater political awakening at the time
of partition when the majority of people were physically and
mentally slave to feudals, sardars and waderas who were ruling the
country. He said the feudals considered Mohajirs a serious threat
to their system and from day one they started conspiracies to
eliminate them.
First, he said, Pakistan's capital was shifted from Karachi to
Islamabad, then Mohajirs were shunted out of bureaucracy, their
educational institutions and banks were nationalized, the quota
system was introduced in Sindh to close the doors of higher
education on Mohajir students and ethnic riots were staged. He said
all these methods were aimed at weakening the Mohajir community so
that it should not be in a position to challenge the feudal system.
He said the establishment still patronized the feudal system and
considered the MQM a threat to the system, thinking its progressive
approach would also create awareness among the Punjabis, Seraikis,
Pathans, and Sindhis. So to keep the Mohajirs away and stop them
from mixing with other nationalities, the establishment
systematically pitched all these communities against Mohajirs by
creating an impression that the Mohajirs were against all other
nationalities.
To achieve this objective, the MQM chief said, the establishment
engineered Punjabi-Mohajir riots in Sohrab Goth in October 1986 and
then similar riots were organized in December the same year in
Aligarh and Qasba Colonies. However, he added, when these
conspiracies did not succeed and the MQM was given a heavy mandate
by the people in the 1987 local bodies elections in Karachi and
Hyderabad, the establishment started patronizing terrorist groups
to make attacks on Mohajir communities.
He said another attempt was made to pitch Mohajirs against Sindhis
which had resulted in the 1988 Hyderabad massacre. And then, in
1992 an army operation was to create an impression that the
Mohajirs were anti-state people.
The MQM chief said the establishment also started patronizing real
terrorists who were provided with vehicles and arms and ammunition
to kill MQM workers and leaders in Karachi. With the help of
government forces, he said, these terrorists succeeded in
controlling Landhi, Korangi, Malir, Shah Faisal Colony and Lines
Area in Karachi. "These areas were turned into no-go areas for MQM
MNAs, MPAs and other elected representatives and party leaders and
workers to create an impression that MQM had been limited to only
the Central district areas," he said. Besides, he recalled, the
establishment also created a new district of Malir to turn a
Mohajir majority area into a Mohajir minority area.
Referring to the joining of the Sindh government, Mr Hussain said
that as a result of the elections in which MQM was given a large
mandate in Karachi, there was no other option left for the
establishment but to involve MQM in government making. However, he
said, despite MQM's majority in Sindh Assembly, the establishment
ensured that the chief minister would be from a minority party. He
said that despite a written agreement with the PML, the MQM-
nominated governor was never appointed nor were MQM ministers
involved in policy-making. This was another way of isolating the
Mohajirs, he said.
CRIMINALIZATION: Mr Hussain said the establishment also created an
impression that the Mohajirs were criminals and should be treated
like that. He said the term "terrorist" was used on radio and
television to describe MQM workers and leaders. The establishment
was trying to create an image that the MQM was not a political
party fighting for the rights of the people but a terrorist
organization. He said it was because of this policy that dozens of
false and fabricated charges of terrorism had been registered
against every MQM MNA, MPA and senator. He said the elected
representatives, some of them too old even to think of committing
any crime, were taken handcuffed to appear in courts just to
establish that every MQM man is a terrorist.
He indirectly disagreed with the claim of the army chief that
everything would be done on merit. "Has any other criminal been
arrested except for MQM leaders?" he asked. "Why governor's rule
has not been imposed in Punjab on merit where thousands of people
have been killed in incidents of terrorism and sectarian riots?" he
asked. "Why till today no police official, who has killed hundreds
of MQM workers, has been arrested and tried in a summary military
court?"
Mr Hussain said every crime committed in Karachi was immediately
connected with the MQM on the ground that since the MQM was the
biggest party in the port city, it must have been committed by it.
"If this is the criterion, then why Pakistan Muslim League is not
held responsible for all the terrorism that is taking place in
Punjab and where Muslim League is the biggest political party?"
DEMORALIZATION: Mr Hussain said the last plank of the
establishment's three-pronged strategy is to create demoralization
among the Mohajirs by isolating them and portraying them as
terrorists and criminals. He said the large-scale arrest of MQM
workers, particularly the arrest of their relatives, sacking of
thousands of MQM workers from the jobs and destroying their homes
was part of the conspiracy to demoralize and eliminate the Mohajirs
to capture Karachi and make it a centre's colony.
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981216
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New US visa interviews from this month
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ISLAMABAD, Dec 15: The American Embassy on Monday announced the
resumption of new immigrant visa interviews for cases that had not
previously been given appointments.
These interviews will begin in the last week of this month.
Appointment letters for the new dates will be mailed in next two to
three weeks.
The US Embassy advised that due to the large number of cases
awaiting interviews and the limited personnel resources at its
Consular Section, the average wait for an appointment will be
approximately six months from the date the Consular Section is
informed in writing that all the necessary documents have been
collected.
The only exception that can be made will be for cases involving
adoptions or children about to turn 21 and who might therefore lose
their ability to immigrate.PPI
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981215
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Paris Club has accepted rescheduling request: Dar
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Ihtasham ul Haque
ISLAMABAD, Dec 14: Finance Minister Ishaq Dar said on Monday that
the Paris Club had accepted Pakistan's request to reschedule its
loans.
"We have been told that the Paris Club has decided to reschedule
our loans and we hope to have a formal announcement in this behalf
very soon," he stated.
Talking to Dawn Mr Dar said that after the Paris Club the London
Club was also expected to restructure the country's debts. "Now the
IMF would meet in mid-January to approve the funding package for
Pakistan," he added.
Foreign Minister Senator Sartaj Aziz, when contacted also, said
Pakistan's request to have its debts rescheduled had also been
accepted . Rescheduling, he added, had been offered for 12 years
with three years' grace period.
The IMF's local representative, Ahsan Mansoor, when contacted,
confirmed to Dawn that Pakistan's loans would be rescheduled as
decided by the Paris Club on Dec 11 to help overcome its pressing
financial problems.
"The Paris Club, which met on Friday last, has finally accepted
Pakistan's request to reschedule its loans, which is very good for
your country," he said.
He said that now the club would meet immediately after the IMF's
executive board meeting in mid-January to formally reschedule
Pakistan's loans.
To a question whether the club would restructure $3.5 billion loans
as has been widely projected by the government, he said: "In fact,
they did not discuss the amount but certainly it is going to be
quite satisfactory from Pakistan's point of view." Friday's meeting
of the club was considered a private and unofficial one in which a
decision, in principle, had been taken to accept Pakistan's request
for rescheduling of loans.
Mr Ahsan said feedback of the Paris Club meeting was very positive
and encouraging and would help to provide the much-needed debt
relief to Pakistan.
Informed sources said the Paris Club's decision to reschedule loans
would go a long way to help the government to put its house in
order, at least for the time being if not permanently.
The sources said although the finance minister had claimed in
Friday's press conference that Pakistan would not default, actually
averting a default would have been pretty difficult had the Paris
Club not forthcoming.
The club had a four-point agenda with regard to Pakistan's request
for rescheduling. First, whether or not to entertain Pakistan's
request; second, to arrive at a cutoff date for calculating the
debt to be rescheduled; third, to determine the period for which
the rescheduling was to be allowed; and, fourth, the types of loans
to be considered for rescheduling.
The last three points in the agenda were to prove contentious
because most of the donors were expected to try to protect their
respective interests.
Most would want to propose a cutoff date of their own liking,
others would want the shortest possible period for rescheduling,
and every one would want to keep out of rescheduling consideration
most of its specialized debts given to public and private sectors
under sovereign guarantee, excluding those loans given directly to
the government.
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981215
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Pakistan not to demand interest on F-16s' money
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Shaheen Sehbai
WASHINGTON: Pakistan has agreed not to demand any interest on the
F-16 money kept by the US for eight years and Prime Minister Nawaz
Sharif has accepted the US offer of paying $350 million in cash for
the F-16s and the rest $151 million in US wheat sales.
This means that Pakistan is not going to file court case against
the US as both President Clinton and Assistant Secretary Inderfurth
had stated that such a move would be embarrassing for Washington
and could affect Pakistan-US relationship.
The issue of Pakistan demanding interest was never officially
raised. Pakistani officials, whenever asked by journalists, would
say it was to be raised when the proper time for it came or when
the US came forward with a solution to resolve the issue.
Karl Inderfurth was asked specifically on Dec 4 during a special
briefing for South Asian journalists whether the interest issue was
discussed. He sidetracked the question and did not answer it at
all.
Experts say Pakistan had a good-to-excellent chance of getting a
court order not just to get its money back but with interest and
that could have meant millions of dollars more. But the first offer
made by the US to settle the matter was grabbed by the Pakistani
negotiators, realising that the offer was being made under pressure
of the court case which the Americans understood they would lose
and thus wanted to avoid.
The deal has, nevertheless, evoked a sharp reaction in the Indian
camp and wails and cries of "a US tilt towards Pakistan" or a
"security threat to India" are loudly being heard.
The agreement, reached between President Clinton and PM Nawaz
Sharif in Washington, was kept in the wraps by the US because the
State Department wanted to give the news to the Indians first
instead of them hearing it from the media.
After briefings were held for members of Congress and specially the
Indian ambassador in Washington, informing them about the deal, Mr
Inderfurth revealed the agreement in a USIA Worldnet Dialogue with
Pakistani journalists on Friday. "I am very pleased to say that
President Clinton and Prime Minister Sharif reached agreement on a
process for resolving this long-standing dispute between our two
countries," he said. He said a detailed view of the accounts
related to these aircraft was now under way by US officials.
Although President Clinton thinks the issue has been settled in
"fairness to Pakistan" many experts think Mian Nawaz Sharif rushed
to grab the offer because of Pakistan's critical economic situation
and because of the fear that long litigation to recover the money
could mean spending a lot of scarce foreign exchange.
The Indian reaction is, however, interesting and one leading
newspaper called it an "attractive package".
The Times of India said in an unannounced briefing this week to
senior aides of US lawmakers by state department and justice
department officials, it was mentioned that the Clinton
administration was considering repaying $300 to 350 million in cash
(70 per cent of the value of the F-16s held by the US) and the rest
in commodity sales specifically winter wheat to Islamabad. The
total worth of this new package is estimated to be approximately
$501 million.
This offer has irked some senior US Congressmen, one of whom
categorised it as a "policy drift in South Asia" which could pose
"new security threats to India."
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981215
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Muttahida holding talks with PPP for alliance
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Correspondent
RAWALPINDI, Dec 14: Muttahida Qaumi Movement was continuing
dialogue with the Pakistan People's Party to form an alliance with
it at all levels with an agenda envisaged on restoration of Sindh
Assembly, withdrawal of governor's rule and military courts,
Kalabagh Dam and restoration of peace in Karachi, the leaders of
MQM, Senator Aftab Sheikh, Nasreen Jalil and Farooq Sattar, said in
a "Meet the Press" programme held at the Rawalpindi Press Club on
Monday.
They said the MQM had no option but to form an alliance with one of
the main political parties of the country, the ruling PML or the
PPP, for remaining in political scenario of Sindh and the country.
It is why the MQM has continued dialogue with the PPP for making
alliance at national assembly, senate and provincial level.
Responding to a question, the MQM legislators said that government
and agencies were involved in killing innocent people in Karachi
while the workers of Muttahida were being implicated in fake cases.
Sen Sheikh said that over 25,000 different cases had been
registered against the workers of MQM within last four years while
all of them have proved to be fake and baseless.
He said the senators of MQM were being threatened of dire
consequences by the ruling party and their supporters if they did
not cast vote in favour of Shariat Bill in the upper house.
He said the establishment of military courts in Karachi and CA-15
(Shariat Bill) was a bid of prime minister Nawaz Sharif to impose
one-party rule in the country.
"We have never talked about the division of the country because
Pakistan was founded by the efforts and sacrifices of our
forefathers who left their property, relatives and migrated to
Pakistan," he added.
He said that armed forces of the country were respectable to the
MQM but the government wanted to make a rift between the armed
forces and the Muttahida by setting up military courts in Karachi.
Speaking on the occasion, MQM parliamentary leader Farooq Sattar
termed the imposition of governor's rule as a planned conspiracy of
the government to take total control of the politics of Sindh.
Replying to a question, he said law and order situation in Punjab
was not different from that of Sindh as according to a report of
ministry of interior, 1,071 people had been killed in Punjab from
January 1, 1998 till now while in the same span of time 861 people
were murdered in Sindh.
He said that since their alliance with the government which was
formed in Feb 21, 1997, over 300 workers of MQM had been killed in
Karachi. He said that all offices of MQM had been sealed by the
government throughout the country and majority of their workers had
gone underground due to excesses and brutalities of police.
"Each and every workers of MQM has been implicated at least in a
single case," he added.
He said the arms being shown on TV were not recovered from the
possession of MQM workers, but brought from government's arms
depots.
workers held: Haq Parast Senators have condemned the arrest of
Muttahida Qaumi Movement workers, sympathizers and their relatives.
They said the police and rangers raided homes and arrested many
workers while at places where the raiding parties failed to arrest
the wanted men, they ransacked the homes and used indecent language
against ladies and other family members.
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981215
-------------------------------------------------------------------
$72m withdrawn on May 26 and 28, says SBP counsel
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Shujaat Ali Khan
LAHORE, Dec 14: Forex deposits amounting to $72 million were
withdrawn on May 26 and 28, the State Bank counsel told a Lahore
High Court bench hearing constitutional petitions against the
foreign currency accounts' freeze and their proposed liquidation as
security for loans.
It was in these circumstances that the government had to bar
holding of forex deposits, Advocate Abid Hassan Minto argued.
Nothing was left of forex deposits to freeze after the promulgation
of the Foreign Exchange (Temporary) Restrictions Ordinance on May
28, he argued.
Once the power to hold or acquire forex was taken away by the May
28 ordinance, it would be wrong to call the SBP action against the
FCAs as "freeze", he submitted. What cannot be held, can also not
be offered as security and the SBP accordingly asked the creditor
banks to liquidate the non-existent accounts as securities.
Mr Minto on Monday furnished to the members of the bench Justice
Mian Allah Nawaz, Justice Amir Alam Khan and Justice Karamat Nazir
Bhandari details of withdrawals from forex deposits without
naming the banks or the FCA holders.
SBP deputy governor Mr Chughtai also appeared before the bench to
explain the mechanism of custody, transfer and withdrawal of forex
deposits.
The bench asked Mr Minto to consider producing voluntarily a break-
up of the forex deposits' utilization by the successive governments
on various herds. The suggestion was made when Mr Minto asserted
that the $11 billion amount in the FCAs was spent on the
necessities of the state like debt servicing and oil imports. He,
however, added that he was not referring to the expenditure on the
dignitaries' visits abroad.
Deputy attorney-general Sher Zaman Khan informed the bench that the
attorney-general wanted to submit arguments in the case but would
be available next week. The bench observed that he might appear on
Thursday or Monday.
Mr Minto argued that the provisions of the Protection of Economic
Reforms Act, 1992, had no bearing on Section 25 of the Banking
Companies Ordinance, 1962, which empowered the SBP to regulate the
credit policy.
Justice Bhandari remarked that a creditor bank might ask a loanee
to take away his security and furnish a new one. In the present
case, he was being asked to withdraw his dollar security at a
specific rate.
Mr Minto said the deposits had ceased to function as security. It
would amount to discrimination if the deposits held by the loanees
were allowed to be released at a rate different from the one
allowed to other FCA holders.
Besides, he said, the loanees were free to accept dollar bonds in
lieu of their deposits and then submit them as security. The bonds
carry attractive terms.
"How would you pay so much profit (in dollars) when the forex
situation is unsatisfactory?" Justice Allah Nawaz asked. Mr Minto
replied that the situation was hoped to improve after three years.
"But would it not add to (internal) national debt?", the judge
asked. "There will be no immediate liability", Mr Minto replied. He
clarified that dollar bonds could be purchased by other currency
holders through direct conversion by banks without the rupee
intervening.
Submitting SBP charts showing withdrawals, Mr Minto said heavy
amounts were withdrawn after Indian nuclear blasts on May 11 and
13. There were large-scale withdrawals amounting to $72 million on
May 26 and 28. There were normal transactions on May 27.
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981214
-------------------------------------------------------------------
PM's family faces court on �11m debt
-------------------------------------------------------------------
Correspondent
LONDON, Dec 13: Prime Minister Nawaz Sharif's family is being sued
in a London court over alleged debts of more than 11 million pounds
sterling (around one billion rupees) which have not been paid by a
paper mill owned by his family's industrial conglomerate.
A writ, issued in the London High Court, names the prime minister's
father and two brothers as guarantors of a huge loan which was used
to purchase manufacturing equipment for their paper mill business
in Lahore, The Sunday Observer reported.
The writ against Hudabiya Paper Mills claims that the prime
minister's father, Mian Mohammad Sharif, and his brothers, Mian
Mohammad Shahbaz Sharif (Punjab chief minister) and Mian Mohammad
Abbas, are liable for the debt as they guaranteed parts of the
loan.
The action is being taken by the Al-Towfeek Company for Investment
Funds, an offshoot of a Saudi Arabian bank, based in the Cayman
Islands, which has offices in central London and Lahore.
The paper said parts of his family's industrial empire are now in
default.
"This summer Sharif was forced to write to bank creditors inviting
them to take possession of the defaulting companies," the paper
said. "He has offered to pay back 2 billion rupees (23m pounds )
through the sale of three companies."
The Sunday Observer quoted the prime minister's son Hussain Sharif
as saying that the group's financial problems were caused by the
malicious practices of previous governments. He has said the family
is suing the company for five billion rupees.
"It is alleged that not a penny of the loan has been repaid. The
family is contesting the case which, it says, ought to be heard in
a Pakistani court under Islamic law," the paper said.
The Observer also recalled its earlier report in which it had
accused the prime minister's family of amassing a secret, personal
fortune in offshore bank accounts and London properties.
It had quoted an FIA report, which had traced more than 40 million
pounds of Sharif's money abroad. The investigation centred on the
Sharif family's Ittefaq group of companies, which grew at an
astonishing rate during his first term in 1990-93.
The paper said Nawaz Sharif is believed to be one of the richest
men in Pakistan. "He and his six brothers are thought to have
assets of more than 500 million pounds in Pakistan alone."
===================================================================
BUSINESS & ECONOMY
981216
-------------------------------------------------------------------
Stronger rupee may affect export earnings
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, Dec 15: The US dollar has shed at least Rs2.66 or 5.15 per
cent of its worth during the last 34 days minimizing the cost of
imports but eating away export earnings in terms of rupees.
The State Bank composite exchange rates fell to a record low of
Rs48.91/Rs49.31 to a US dollar for spot buying and selling on
December 15 from an all-time high of Rs51.57/Rs51.97 on November 11
1998.
The December 15 composite rates are the lowest since State Bank
began quoting these rates on August 1 the first band of rates being
Rs49.23 and Rs49.63 per US dollar the same day.
The SBP composite rates are based on weighted average of the buying
and selling prices of the dollar of 16 local and foreign banks.
That is why these rates are seen largely as the best yardstick to
gauge the strength of the rupee vis-a-vis dollar.
Senior bankers said the dollar traded between Rs51.90 and Rs52.20
in the inter-bank market on December 15 down by around Rs6.00 from
an all-time high of Rs57.60 and Rs57.80 on November 12. This shows
a fall of over 10 per cent in the value of dollar in just 33 days.
Obviously the exporters have been hit by the huge fall of the
greenback which has slashed their foreign exchange earnings in
terms of rupees. On the other hand the reduced cost of dollars has
benefited the importers.
Senior bankers say this situation is bound to change because if it
continues it would defeat the very purpose of introducing multiple
exchange rates system. One of the major objectives for introducing
this system in July this year was to help Pakistani exporters
remain competitive in the world market and discourage imports into
the country without devaluing the rupee outrightly.
Bankers say what put the dollar on a steep decline were the State
Bank intervention in the inter-bank market - twice within a week.
On December 8 the SBP sold some $5 million in the market and on
December 14 it pumped in an additional $6 million or so.
"There is a psychological impact of this intervention. It has
passed on a clear message to the banks that the SBP wants them to
bring down the inter-bank rates," said treasury manager of a Middle
Eastern Bank. "Banks being unable to hold long positions now are
compelled to sell foreign exchange at cheaper prices in the wake of
an intervention."
"The market has received an exaggerated impact of the State Bank
intervention," said treasury manager of a foreign bank referring to
the fall of the dollar from Rs54.15 to Rs51.80 in the inter-bank
market on Monday.
Both bankers said the State Bank intervention might be aimed at
forcing down the rates of the dollar to a level where they could
easily absorb any increase after a change in composition of
composite rates. Finance Minister Ishaq Dar had told top bankers in
Karachi late last month that the composite rates mix might be
changed in a manner to give more weightage to the inter-bank rates
and less to official rate.
Bankers say there has been a temporary slump in the demand for the
dollar in the inter-bank market because of faster inflow of export
proceeds and slower pace of opening of letters of credit by the
importers. Bankers say after the introduction of the multiple
exchange rates system in the last week of July import financing had
dropped sharply. They say that with the inter-bank rates shooting
up to an all-time high of Rs57.60/Rs57.80 on November 11 the volume
of LCs opened with the banks declined further which reduced the
demand for the greenback and stabilised the rupee.
In mid-November the State Bank had cut the Nostro limits of all the
banks from around $375 million to $185 million besides restricting
the permissible ceilings for withholding foreign exchange. This
refrained the banks from indulging in speculative trading of the
greenback and resulted in its increased supply in the inter-bank
market. In the mean time the exporters were asked to sell 50 per
cent of their export proceeds within 7 days after the realisation
to the banks instead of 14 days which also improved the dollar
supply.
Besides, the period for realisation of export proceed itself has
been limited to 90 days after the expiry of the due date and the
exporters failing in realising their export proceed within this
period are liable to be treated as defaulters. Though this has led
to a faster inflow of proceeds helping the inter-bank rates to ease
off yet the exporters community say it can hurt the exports badly
because of the operational problems it has created for them.
When seen against this backdrop the fall of the greenback in inter-
bank market does not appear to be a source of solace for long.
Financial analysts say it is bound to follow a substantial change
in foreign exchange policy with a view to facilitate the exporter
which would certainly strip the rupee of whatever charm it has
regained in these days.
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981218
-------------------------------------------------------------------
'SBP has no control over forex spending'
-------------------------------------------------------------------
Shujaat Ali Khan
LAHORE, Dec 17: There is a legally established and regulated
currency market in the country and it is not difficult to ascertain
the value of a currency or its conversion rate vis-a-vis other
currencies, petitioners' counsel argued before a Lahore High Court
bench hearing the FCA holders' case.
Advocate Salman Akram Raja was answering court queries about the
rupee-dollar parity. The bench told him that according to SBP
counsel, Abid Hassan Minto, the rate fixed by the State Bank was
the market rate and any other rate was a 'black market' rate.
The bench observed on Thursday that it was quite clear on the
issues involved. It asked Mr Raja, time and again, to confine
himself to matters it wanted further clarified, particularly the
fixation of conversion rate. Attorney-General Chaudhry Muhammad
Farooq will make his submissions on Monday, the last day of
hearing.
At the outset on Thursday, Mr Minto clarified the SBP's powers and
functions briefly 'for the consumption of those creating
confusion'. He said the State Bank had no power to determine the
economic policy or to act as an Ehtesab bureau or refuse payment in
rupees or forex to the federal or a provincial government so long
as it had a deposit with it.
"The forex belongs to the government and the SBP only holds it as
its banker. It is none of the SBP's business to ask the government
to spend forex on one head and not on another. The bank could
decide how much currency to float".
Justice Karamat Nazir Bhandari, a member of the bench, asked Mr
Minto to make available a copy of the Quaid-i-Azam's speech on the
inauguration of the SBP building in Karachi in 1948 to see the role
envisioned by the father of the nation for the country's central
bank.
Mr Minto said the SBP decisions like those of the Pakistan Bar
Council, the Pakistan Medical and Dental Council and other
professional organizations, were beyond the scope of judicial
review. Concluding his arguments, he cited case law to substantiate
them. He said there were two stock stipulations in loan agreements
that the loan might be recalled any time and that it was subject
to the SBP's credit policy.
In reply to a question about remittances by expatriates, Mr Minto
said his problem was that he was neither a standing counsel nor a
legal adviser of the State Bank. His brief was confined to Circular
23, which required liquidation of the non-existent foreign currency
accounts as security for loans.
Advocate Raja submitted that no one could be deprived of his
property without the operation of law. The bench asked him to
address arguments on conversion rate.
Referring to the SBP stance that there was no acquisition of
property and, therefore, there was no question of payment of
compensation at the prevailing market rate, Mr Raja said why the
SBP or the government was paying Rs46 for every dollar if there was
no acquisition or appropriation.
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981218
-------------------------------------------------------------------
Hubco chief, 6 others issued warrants
-------------------------------------------------------------------
Ihtasham ul Haque
ISLAMABAD, Dec 17: Ehtesab bureau moved here on Thursday an interim
challan and charge-sheet in a special banking court against Hubco
power project for its alleged involvement in $400 million kickbacks
and over-invoicing.
The FIA submitted the charge-sheet on behalf of Ehtesab bureau in
the Special Judge Banking Court, Karachi.
It also issued "red warrant" against chief executive of Hubco, D.M.
Woodroffe, S. Khurshid Hussain, director finance of the company,
Shahid Hassan Khan, special adviser to the former prime minister
Benazir Bhutto, Salman Farooqui, former power secretary, Daud Beg,
former adviser PPIB, M.B. Abbasi, former chairman NDFC and Ahmar
Nadeem.
All the accused except Khurshid Hussain, had been declared
absconders in the interim challan, however, the red-warrants would
be against all of them. Khurshid Hussain had been granted interim
bail by Sindh High Court.
"We have completed all the legal requirements and investigation
against Hubco which has been involved in corruption and kickbacks
amounting to over $400 million", claimed chairman of the Ehtesab
Bureau Senator Saifur Rehman.
Speaking at a news conference he said $217 million over-invoicing
by the company was also proved for which interim challan and
charge-sheet had been submitted in the court of special judge in
Karachi today.
This is the second case against Hubco. Earlier the government had
got reduced power tariffs from Rs11 to Rs6.60 per KWH through
superior courts. However, it was strange why the government had
decided to initiate criminal case against the company specially
when few weeks ago it had announced that the issue would be settled
out of court.
Minister for Water and Power, Gohar Ayub, Finance Minister Ishaq
Dar and Sen Saifur Rehman were on record having said at a news
conference that the matter was being resolved through out of court
settlement.
Sen Saif alleged that the National Power Company had fraudulently
set up three subsidiary companies to make purchases of spare parts
and fuel and gas. "It also charged Rs17 billion in excess from
WAPDA for which a separate case is being prepared", he added.
He regretted that Hubco was primarily a project of $0.9 billion
which was stretched to $1.6 billion. "The NDFC had the investment
of $0.7 billion in it but National Power got all the profit and
sent it abroad".
Commitment charges of $1.055 million paid to Morgan Grenfell
against the advance agreement for $104 million needs to be
disallowed for the purposes of tariff calculations from the equity
in accordance with the GOP letter dated Feb 27, 1994.
The project development costs incurred by Kumagai Gumi and Toshiba
was required to be treated as if they were incurred at the
commercial operation date, which was March 31, 1997 for the
purposes of equity injection. However, for calculation of reference
tariff it was not adjusted.
The overall financial effect of these initial findings of
irregularities works out to $217 million approximately. This amount
has been taken away by Hubco from WAPDA in the very early years of
the operation of the project i.e. year 1996-97 and 1997-98. "They
have taken this amount in the very early years to minimize the
overall effect of price escalation on account of these
irregularities to avoid their visible impact. If they would have
spread it over the project life, the unit price of the electricity
would have been much higher", the charge sheet said.
It is evident that all these irregularities were committed by Hubco
promoters (HRPG) to increase the IRR fraudulently, contravention of
the understanding with GOP and WAPDA. The HRPG had increased the
IRR fraudulently to ultimately increase the size of the premium on
rights which they have sold to the private and general investors,
the charge-sheet said.
The increase in premium amounting to $87 million was used to give
kickbacks to Shahid Hassan Khan, Salman Farooqui, Daud Beg, Ibrahim
Elwan and others, it said.
In addition to the foregoing, following further irregularities were
also detected:
The power company was allowed to issue shares at 10 per cent
discount against project development costs in August 1994 without a
confirmation from the ministry of water & power or GOP or the CLA.
The company was allowed to issue shares against project development
costs at exchange rates prevailing on the date of consent instead
of rates prevailing at the dates of transactions by CLA/State Bank,
ministry of water and power in contravention of the exchange
regulations.
Expenses of various investors who left the project such as Hawker
Sidley, Kumagai Gumi, Toshiba etc. were allowed to be capitalized,
whereas due to their withdrawal, the project was considerably
delayed and cost to GOP substantially increased.
Originally the project was conceived as BOT. However, subsequently
the GOP had given its consent to BOO.
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981217
-------------------------------------------------------------------
CBR campaign to register ST retailers
-------------------------------------------------------------------
Correspondent
ISLAMABAD, Dec 16: The Central Board of Revenue plans to launch
forced registration of all major retailers from the first week of
January 1999, so as to speed up sales tax collection from retailers
with turnover above Rs 5 million.
CBR sources told Dawn here Tuesday that the federal government has
"had enough of the defiance and there is no option other than
imposing the law by force", said a very senior CBR official.
He said the federal government has been sending signals that the
retailers would be made to pay the tax due and all measures would
be adopted for this purpose, including resort to arresting the
defiant ones. "All is set now. We are not going to be bogged down
by the threat that there would be a countrywide shut-down", he
added.
Asked about the implementation plan, he said "first the big fish.
We have chalked out a list of thousands (not divulging the exact
number) of the major retailers in 10 metropolitans and
municipalities of provincial capitals plus four big towns in the
provinces of the Punjab, Sindh and Frontier, who would be our first
target."
A CBR circular issued in July regarding imposition of retail tax
had said: While no coercive measure is being taken by the Sales Tax
department until Oct 20, 1998, all such retailers are advised to
obtain sales tax registration at the earliest. Other retail traders
below the threshold of Rs 5 million annual turnover have option
either to obtain voluntary registration or to obtain taxable goods
with one per cent further tax, in accordance with the law. The
fixed sales tax schemes have been abolished with effect from July
1, 1998, and the manufacturers who worked under the fixed sales tax
scheme in 1997-98 or earlier, should now file normal sales tax
returns and work under- invoice-based GST system or under the
turnover scheme as may be applicable in their respective cases.
The CBR records say that by the end of October 1998, only 529
retailers got registered with Sales Tax department whereas more
than a million retailers were targeted to be registered during the
whole of the current financial year 1998-99. Half of that number
were estimated to be registered by December 1998. The total returns
received by end of October 1998 were 308, while the total money
deposited by the 529 retailers so far registered was Rs 5.1
million. The CBR estimates Rs 2.5 billion from retailers in sales
tax.
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981217
-------------------------------------------------------------------
PIA sees Rs700m profit
-------------------------------------------------------------------
DUBAI, Dec 16: Pakistan International Airlines (PIA), which has
gone fundamental reforms, restructuring and revamping, is poised to
post a profit of Rs 700 million for eighteen months from July 1997
to December 1998, according to a PIA Press release.
In fiscal year 1996-97, the airline had declared accumulated losses
of Rs 4.6 billion. This year the carrier's accounting year has been
changed from July-June to December-January so as to bring it in
line with international industry practices.
A combination of reduction in expenditure and enhancement in
revenues through implementation of long-term policies has resulted
in the airline's present healthy financial position.
In the fiscal year Jan-Dec '99 PIA hopes to post a profit of over
Rs 1 billion.
PIA is introducing a Frequent Flyer Programme (FFP) and an
Executive Club programme. The FFP which has been branded as "Award
plus" shall be launched from Jan 1, 1999 with the Executive Club to
be launched a month later.
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981218
-------------------------------------------------------------------
Indonesia to buy 2.77 lakh tons of rice
-------------------------------------------------------------------
KARACHI, Dec 17: Pakistan rice prices were expected to firm up
after Indonesia accepted on Thursday bids to buy 277,000 tons of
Pakistani rice in a tender, exporters said.
"Prices had dipped to 880/890 rupees (per 100 kg) this week, but
should rise to 900/915 rupees within a few days," said Dara Raza
Ghaffar of Mehmood (Pvt) Ltd.
His firm was among the successful bidders in the tender and will
supply 23,000 tons for February shipment.
Indonesian commodity regulator Bulog said it had accepted bids to
buy 277,000 tons of Pakistani rice in a tender for 200,000 tons.
The grade is 15-20 per cent.
Bulog said prices ranged from $221.90 to $234.75 per ton on a cost-
and- freight basis.
Ghaffar said exporters were likely to start purchasing rice from
the local market after details of the contracts were finalized with
buyers in Indonesia.
But he said local prices were unlikely to rise dramatically because
the quantity of 277,000 tons was small compared to the surplus of
IRRI variety available for export in Pakistan.
"We are estimating an export surplus of 1.4 million tons of IRRI
rice this year," Ghaffar said.
Pakistan exported more than 2.055 million tons of both IRRI and
Basmati rice varieties in 1997/98 (July-June), compared to 1.767
million tons the previous year.
Rice exporter Hanif Janoo also said prices were likely to rise this
week because the tender results would trigger local buying.
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981213
-------------------------------------------------------------------
NIT bid to forestall RPL move
-------------------------------------------------------------------
Nasir Jamal
LAHORE, Dec 12: Rupali Polyester Limited (RPL) has announced that
it planned to go ahead with its intention to acquire 100 per cent
share capital of an associated company Rupafab Limited for
making it a wholly owned subsidiary in spite of an active
opposition by National Investment Trust (NIT).
The RPL management will present a resolution, seeking approval of
the company's shareholders, for purchasing 37,697,000 ordinary
shares of Rs10 each at the rate of Re0.77 per share in the annual
general meeting (AGM) being held in Karachi on Dec 19.
National Investment Trust (NIT), one of the important investors in
RPL, is vigorously opposing the proposed deal. Rupafab is a
textile dyeing/printing/finishing project set up for producing
fabrics for local and export markets with a paid-up capital of
Rs376.972 million.
However, the company's perpetual losses have eroded its capital.
NIT officials in Lahore say the proposed deal was against the
interests of ordinary, individual shareholders.
Talking to this reporter on Saturday, the RPL chief executive
Badruddin J Feerasta said the opponents of the proposed deal were
not aware of the benefits it would bring to our shareholders.
The RPL officials claim the company will pay about Rs29 million to
purchase 100 per cent equity of Rupafab, but the NIT experts say
the amount to be transferred to Rupafab under different heads would
be close Rs1 billion.
The NIT officials pointed out that the resolution to be put before
AGM pledges to convert the RPL loan amounting to Rs300 million to
Rupafab as well as the outstanding mark-up on it into the latter's
ordinary shares.
Besides, the resolution says RPL may restructure the Rupafab's debt
and/or pay off its expensive debts to reduce its total debts by
advancing Rs500 million free of interest for 18 months.
The interest-free advances would be given to revive Rupafab and
make it profitable, the RPL officials claim. This is ultimately
going to benefit RPL shareholders, they say. But, they insist, RPL
is actually investing only Rs29 million in acquiring Rupafab.
RPL earned a profit before taxation of Rs128.750 million during the
year ending June 30, 1998, which was about Rs78 million less than
the previous year. Its sales declined during 1997-98 to Rs2.075
billion from Rs2.318 billion the preceding financial year, bringing
gross profit down to Rs176.735 million from Rs341.714 million.
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981215
-------------------------------------------------------------------
$-euro reference rate to be set on 31st
-------------------------------------------------------------------
BRUSSELS, Dec 14: The debut reference exchange rate between the
euro and the dollar will be set Dec 31, when the European
Commission will look at the conversion rates for that day of the 11
euro zone countries concerned, a Commission spokesman said on
Monday.
The Commission will judge the euro-dollar rate on the individual
exchange rates of the dollar against the currencies of Austria,
Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the
Netherlands, Portugal and Spain, which themselves will be fixed
that day.
The rates of each of the 11 currencies against the euro will be
flashed up onto a screen during a Brussels ceremony to be attended
by the 15 EU finance ministers at 12:30 p.m. (1130 GMT) on Dec 31.
After consultation with the European Central Bank, the euro-dollar
reference rate will come into being at 1:30 p.m. (1230 GMT) after
unanimous agreement by the ministers and a ratifying signature by
Austrian Finance Minister Rudolf Edlinger, who will represent
Austria's current presidency of the Union.
The rate, once set, cannot later be modified by the EU's
politicians, and it will be valid for only a few hours.
Once the euro is born officially at midnight Dec 31, market forces
will take over, using that reference rate, and the money will be
traded like any other floating currency.
Technically, that means from Jan 1, but in effect that will really
be Jan 4, when markets reopen after the end-of-year holidays.
For three years, up to 2002, the euro will simply be a "virtual"
currency, existing in bank transactions and on credit cards while
national currencies will continue as at present although, being
composite parts of the euro, they will not fluctuate against each
other.AFP
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981219
-------------------------------------------------------------------
Stocks show firm trend on buying in chemicals
-------------------------------------------------------------------
Reporter
KARACHI, Dec 18: Stocks on Friday showed firm trend aided by active
speculative buying in the chemical shares under the lead of Engro
Chemical amid rumours of hostile takeover bid by a leading group to
grab the Engro's floating stock.
Contrary to analysts predictions the index managed to finish with a
moderate recovery of 11 points at 939.84 as compared to 928.84 a
day earlier, reflecting the strength of leading base shares.
All eyes were again centred on Engro Chemicals as a leading
brokerage house was after its each share irrespective of the price
tag.
'Engro Chemical has been in the news last month too on rumours that
its immediate rival Dawood Hercules is grabbing its floating stock
to secure a seat on its board', analysts said.
It ended about Rs.12.00 up around Rs90.25 on a volume of 6.5m
shares but in the previous month's speculative run it touched the
peak of Rs 97.00 in more than one sessions.
Engro Chemical is one of the largest urea chemical producers after
successive expansion programmes carried out the by management and
its existing annual capacity is placed around 0.850m tonnes. It is
also a recipient of successive Corporate Excellence Awards of the
Karachi Stock Exchange because of its good profit-sharing policy
and higher rate of dividend.
'Having an enormous resource base, its management has the capacity
and the will to forestall any hostile takeover bid from any
corporate giant including the Dawood group of companies', said a
leading analyst.
There is, however, a loud whispering in the rings that the
Employees Management Group is currently in the process of
diversifying its investment portfolios, notably to PVC and LPG
business, which may have encouraged speculators to indulge in
rumour-mongering, he added.
Other fertiliser shares, notably Fauji Fertiliser, FFC-Jordan
Fertiliser and some other blue chips in the chemical sector also
came in for strong support and ended with smart gains.
The relative strength of the PTCL, which managed to finish modestly
higher was said to be another contributory positive factor.
A maintained dividend at the rate of 12.5% by Pak Datacom for the
year ended June 30, 1998 seems to have been below market
expectations as was reflected by a sharp decline of Rs 2.50 in its
shares at Rs 14.00 on 52,500 shares.
Big gainers, were led by General Tyre and Engro Chemical, which
posted gains ranging from Rs 3.55 nd 11.80 followed by Fidelity
Modaraba, Union Bank, Gadoon Textiles, PSO, and Fauji Fertiliser,
which rose by one rupee to Rs 2.45.
Losers were led be leading shares such as Metropolitan Bank,
Artistic Denim, Shell Pakistan, Dadabhoy Sack and Lever Brothers,
falling by one rupee to Rs 19.00. All other fall were fractional.
Back to the top
===================================================================
EDITORIALS & FEATURES
981213
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Parasites
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Ardeshir Cowasjee
AN irate crotchety woman, who has bestowed upon herself the
privilege of barging into my house and telling me what she has to
say whether I wish to hear it or not, 'rushed' up to me after
reading my last column in which I had referred to our 'government
of clowns' and roundly berated me for having handed out such a dire
insult to that highly talented and professional body of
entertainers.
How could you even dream of comparing these shoddy so-called
politicians, these parasites, with men who with their skills and
genius have delighted so many millions down the ages? Would
Shakespeare ever have had hired them for his plays, or for that
matter would Barnum and Bailey or Hagenbeck-Wallace ever have
allowed them near their big tops?
Not mere feminine logic that, I had to admit, as I reflected on
Shakespeare's 'fools' and the clowns whose performances the world
has enjoyed. Our parasites are no Joeys.
Clowns train and work hard to perfect their acts, their ludicrous
antics and buffoonery, their aim being to induce laughter and joy
through their broad graphic humour, absurd situations and vigorous
physical action, enchanting adults and children alike.
Their earliest ancestors performed in ancient Greece, bald-headed,
padded buffoons, parodying the actions of the more serious
performers and pelting the audience, monkey-like, with nuts. In the
Middle Ages came the travelling performers, the famous Italian
commedia del-l'arte and its most durable clown character, the
Arlecchino, the Harlequin with his black domino mask.
In England, clowns descended from the vice character of the
mediaeval mystery plays, pranksters who could even deceive the
devil. The most famous of the English lot were William Kempe and
Robert Armin, both connected with Shakespeare's travelling company.
The German favourite of the 17th and 18th centuries was the
character Pickelherring, with his oversize shoes and clothes, and a
giant ruff around his neck. The traditional white make-up was
introduced in France in the 17th century, with Pierrot, the
lovesick, pathetic and melancholy character weeping tears for his
perpetually unrequited love.
The earliest of the true circus clowns, Grimaldi, first appeared in
1805. Clown and pantomimist, he created a new type of clown
combining rogue and simpleton, criminal and innocent dupe. He was
considered to have no equal as a comedic performer, and to this day
clowns are nicknamed Joey in recognition of his talent.
Then came Grock, the Swiss clown of our century, whose proverbial
blunders with piano and violin were famed throughout Europe and
America. The clown figures culminated in Charlie Chaplin, the flat-
footed pathetic yet humorous little tramp, with his derby hat,
tight frock-coat, baggy trousers, outsize shoes, moustache and
cane, and his meteoric rise to world fame and acclaim; and in
Moreno, known to the world as Cantinflas clown, acrobat,
bullfighter, satirist, and a brilliant Passepartout in the film
'Around the World in Eighty Days.'
Our Prime Minister Mian Mohammad Nawaz Sharif and his fellow
travelling cronies take the cake. He went off on this last trip
accompanied by a retinue of over one hundred adding the head-
massagers and champiwallas, the total was near one hundred and
twenty-nine.
Whilst in Islamabad last week, I met some of the freeloaders and
asked them what the need was for them and their spouses to travel.
None but one had a reply : "Yes, we went. But no great criminal
offence was committed."
Huseyn Shaheed Suhrawardy was the first head of government to take
with him to Europe an inflated troupe of 20 and was so harshly
berated by the people that he never did it again. Ayub Khan
travelled by the normal PIA flights and the only privilege he
claimed was that the seat next to him remained empty. With him went
only the necessary few.
Agha Mohammed Yahya Khan had time for just two trips abroad, the
more important one being to the Shah's big bash at Persepolis, to
celebrate 2,500 years of his 'dynasty'. Yahya took four men with
him.
Come Bhutto and the circus scenario took form. Shortly after having
received a couple of million dollars in aid from Sweden, he took
off for the West, stopping at Stockholm on an official visit,
carrying an entire plane load with him, making a mickey out of
himself and his nation. Questions were asked in the Riksdag as to
why the Swedish people's money had been given to finance a joy-ride
for the Pakistanis.
Olaf Palme, with difficulty, calmed the house. Having invited
Bhutto and his entourage, he did not want any public discourtesy
shown to them.
Zia had eleven years for travels, and did travel, but relatively
infrequently and never with a crocodile behind him.
Then came the most ridiculous prime ministers with which this
nation has had to bear. Not only have they robbed us, but they have
ridiculed us in the eyes of the world. We pay for their regular and
frequent trips and outings and for the trips and outings of the
hundreds of hangers-on that cling to them.
Each time they return, there are reams of recriminations written,
blame is laid here and there, they are cursed roundly, public
disgust is manifested but it all makes not a whit of difference.
They blithely continue down their dissolute ways.
After Benazir Bhutto's Haj trip in 1994, she somehow imagined she
had been belittled (not difficult to do in her case) by the
inadequate protocol arrangements and insufficient creeping and
crawling, and read the riot act to the Foreign Office.
On May 25, 1994, Shahid Amin, ambassador of Pakistan to the Kingdom
of Saudi Arabia, addressed a memorandum to the consul-general at
Jeddah and the director-general, Haj, marking copies to the foreign
secretary, the secretary of religious affairs, and the military
secretary to the PM, starting the making of a fat file.
"Subject: Arrangements for Prime Minister's Visit for Haj (19-21
May) 1994."
"During the Prime Minister's visit, the following
lapses/deficiencies were observed:
"a) On arrival at Jeddah airport (May 19) Prime Minister's children
and nannies were not promptly disembarked. The aircraft door was
shut and the plane was being taken away for parking when the
military secretary rushed [note, 'rushed'] to the aircraft to bring
out the children.
"b) Copies of programme were not given to the delegation members,
including staff of Prime Minister.
"c) At the Guest House in Mina and for the major part of the visit
until arrival in Madinah Al-Munawwarah, the Ambassador was left
alone with only one aide (Mr Hazarvi) to look after the entire
delegation. In spite of security restrictions, some officials could
have managed to accompany the delegation (as indeed two local PPP
leaders did so).
"d) According to DCP Col. Latif, he had requested Consul-General to
arrange supply of Zamzam water to the aircraft before it left
Jeddah for Madinah Al-Munawwarah. This was reportedly not done and
PIA had to make last-minute arrangements.
"e) During Prime Minister's brief stay in Madinah Al-Munawwarah,
Deputy Director (Haj) Mr Akif was not in Madinah despite specific
orders.
"f) On arrival at Haram Sharif in Makkah Al-Mukarramah on May 19,
Director (Haj) Mr Abdul Rehman was not at the gate to take care of
shoes of Prime Minister and delegation members.
"2. The above may please be investigated immediately and a report
put up by May 30, 1994, latest. Further action will be considered
thereafter."
The PIA man caught on the hop in Jeddah on the 1994 jaunt, who
helped out with the "last-minute arrangements" for the prime
ministerial Zamzam water, should have been congratulated by the
Ambassador for his quick thinking. He deputed his underlings to
'rush' to the nearest tap and fill up the required canisters.
(Mr Shahid Amin has now retired from the foreign office and has, I
am told, offered his services to Imran Khan as head of his party's
'think tank.' With whom do we sympathize, Imran or him?)
This letter illustrates the degeneration that has set in all
around, our renowned Foreign Office included. Would it have been
conceivable that the envoys we sent out before the rot really set
in could ever have penned such a letter? Ikramullah, Rahimtoola,
Ispahani, Osman and Sikander Beg, Joe Yousuf, Sami Dehlavi,
Jamsheed Marker, Sultan Khan, Jumbo Kharas and the rest of that
breed of men would have shot themselves rather than have so
demeaned themselves and their positions.
Who is to be blamed for all this? If my house is to be robbed, and
I do not protect it, who else will? We are being shorn of our
assets, money, and self-respect and yet we meekly tolerate it all.
We do not stand up and fight.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
981219
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Gift of eyesight
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Irfan Husain
MY greatest fear is that of losing my eyesight. Watching my father
gradually grow blind over the last years of his life has given me a
close insight into the terrible deprivation blindness imposes,
especially on somebody like my father who had spent a lifetime
reading and writing books.
I was therefore more than happy to accept an invitation to visit
the Layton Rahmatulla Benevolent Trust (LRBT) eye hospital in
Korangi. While I had heard of the organization because of the
active fund-raising efforts of its volunteers, I had no idea of the
exact nature and extent of its activities. The LRBT ball is one of
the highlights of our social calendar, but I did not realize that
it had recently raised over ten million rupees after meeting
expenses.
My vague conception of the operation was one of well-meaning
socialites running a small-time, feel-good charitable eye clinic,
so I must confess to a brief sense of disorientation when I entered
the hospital. A line of patients stood in a queue, while the large
OPD was packed with people who were waiting their turn to be
examined. But despite the numbers, there was no pushing or
jostling: clearly, there was a system at work.
My hosts informed me that the hospital employed 25 doctors and 75
support staff to treat 550 patients every day. And although
relatively few patients were encouraged to stay overnight, there
were 100 beds in the facility. Over 80 minor and major operations
are performed daily, and the hospital had acquired state-of-the-art
equipment.
But what impressed me most was the cleanliness of the premises.
Despite the hundreds of people who walked through the hospital the
whole day, there was not a scrap of paper of a glimpse of the
disgusting betel juice that adorns most public buildings in
Karachi. I often judge an organization's efficiency by the
cleanliness of its toilets, and the hospital passed this test with
flying colours. Clearly, the management took the time and trouble
to supervise every aspect of the facility.
The scope and scale of the LRBT operation is staggering: with units
ranging from field eye hospitals to full-fledged base hospitals
like the one in Korangi, the Trust is treating patients from
Karachi to Kalakalay in Swat. Indeed, so far the Trust's doctors
have treated over four million patients, with the Karachi hospital
alone receiving over half a million men, women and children with
eye problems every year. The Trust is currently active in a dozen
cities and towns all over the country.
Apart from all the good the nation-wide operation is doing, the
fact that it is almost entirely funded by individuals and
charitable organizations helps restore one's faith in mankind. In
the last fiscal year, the Trust raised an impressive 75 million
rupees. This money pays for salaries and utilities, apart from
financing the purchase of equipment and the construction of new
hospitals and clinics. All treatment and medication is free, and
the meals in the hospital cafeteria are subsidized. I do not know
of any charitable organization that has grown so quickly: within a
span of a decade, it has become a large eye treatment network in
the country.
The driving force behind this enterprise is Graham Layton (Mr Zaka
Rahmatullah died in 1989). He arrived in Karachi in 1942, and spent
much of the Second World War in Burma. He returned to the part of
the subcontinent that had become Pakistan in 1947, and became a
citizen in 1984. In between, he founded a construction firm that
was responsible for executing a number of major engineering
projects. He retired in the early 1980s, and since then has devoted
his life and money to the poor of Pakistan. How many of our
homegrown tycoons can say half as much? A few years ago, Mr Layton
was laid low by a debilitating illness that has all but immobilized
him. Nevertheless, he keeps in touch with the affairs of the Trust
from his Karachi home.
He has been aided by a large group of dedicated volunteers in his
efforts,both here and abroad. From Dubai to London to New York, a
network of friends and admirers raise money for LRBT. In addition,
a large number of individuals and corporations in Pakistan
contribute significantly. So clearly, the spirit of philanthropy is
not dead in Pakistan, as the more cynical among us had supposed.
Once an organization establishes its credibility and donors are
reassured that their money will be well spent, funds are available
for deserving projects. The Edhi Trust and Dr Adeeb Rizvi's
remarkable SIUT bear testimony to the generosity of individuals and
corporations when approached by organized, well-run charities.
In a society that has degenerated as much as ours has, this is
saying a lot. So clearly, one needs to demonstrate a degree of
commitment and transparency to tap into the reservoir of goodwill
and spirit of charity that exists below the surface. Unlike the
West where philanthropy is well established and organized, here the
onus of establishing one's credentials is on the charity and its
supporters. Given the many scams that have accompanied so many
fund-raising drives, this tough approach to giving to charity is
understandable. A decade ago, I tried to motivate schoolchildren to
donate a apart of their pocket money to the official fund set up to
aid the victims of the Ojri Camp disaster. They said they would
contribute, but through the Edhi Trust. Even kids do not trust the
government to spend money on what it is intended for.
Under these circumstances and in these cynical times, it is heart-
warming to see an organization like the LRBT thrive. And unlike
other, far less ambitious and effective charities, the Trust has
worked and grown with very little fanfare and publicity. Except for
the annual fund-raising ball, few people except the poor with eye
problems are even aware of its existence. But if anybody is looking
for an efficient and highly cost-effective charitable organization
to support, they don't have to look any further.
===================================================================
SPORTS
981218
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Pakistan go down fighting to South Korea
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BANGKOK, Dec 17: Defending champions South Korea kept spirited
Pakistan at bay to move into the Asian Games men's hockey final
with a 3-2 win here on Thursday.
The new-look Pakistanis, fielding just two players who featured in
the World Cup in May, lived up to their coach Shahnaz Sheikh's
promise of giving the favoured Koreans a tough fight.
The Koreans, stunned by a fifth minute goal by Pakistani penalty
corner exponent Sohail Abbas, hit back with three quick goals to
lead 3-1 at half-time.
The lanky Abbas narrowed the margin midway through the second half
with another penalty corner, but the Korean defence warded off the
equaliser from their young rivals.
South Korea, looking for their third Asian Games title, await the
winners of Thursday's second semi-final between India and Japan in
the final on Saturday.
Pakistan axed senior players like Shahbaz Ahmed, Tahir Zaman and
Kamran Ashraf after they failed to retain the World Cup at Utrecht
in the Netherlands.
"There are no stars in the current team, only honest players
willing to give their best," Shahnaz said. "They will be the best
one day."
South Korean coach Koo Jin-Soo, worried after Mondya's defeat by
India, appeared relaxed afterwards and said he was looking forward
to winning the final to gain a direct entry into the 2000 Olympics in
Sydney.AFP
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
981218
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Railways win National women hockey 12th time
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A Majid Khan
KARACHI, Dec 17: Defending champions and title favourites Pakistan
Railways overpowered fighting Karachi 'B' by a second-half 4-0
victory to retain the trophy of the 18th National Women Hockey
Championship for the fourth successive year and for a record 12
times here on Thursday at the Hockey Club of Pakistan Stadium.
After a scoreless first session, experienced insideright Farhana
Ayaz, the top scorer of the championship with 12 goals to her
credit turned out to be the main architect of the Railways victory
by netting the first, third and fourth goal while halfback Saima
Afzal, who switched over to right-winger position, scored the
second goal.
Quetta B's centreforward Riffat was the second highest scorer with
11 goals.
Begum Saba Haleem wife of Capt Haleem Siddiqui State Minister for
Water and Power,who gave away the prizes. The Navy band was in
attendance.
In her address chief guest Begum Saba Haleem praised the wonderful
spirit with which the teams from all over the country participated
and congratulated victorious Railways and fighting Karachi girls in
the final. She was all praise for the organising committee headed
by Begum Nafis Iqbal and secretary Mrs Shahida Jamil, and others
for staging the championship.
The PHF Women Wing President Begum Saeemeen Farooq, in her welcome
address, said it was one of the finest National Women Championship.
In her report, Mrs Shahida Jamil, organising secretary, who is also
the PHF Women Wing secretary and the President of host Sindh Women
Hockey Association, stated that participants must have enjoyed
their stay in the city and would return home to cherish the
memories. She praised the hard work by Tournament Director Mrs
Shaista Javed and also others who worked day and night for the
success of the 11-day championship. She thanked the PHF and major
sponsor Habib Bank Limited for extending their support for the
event.
Peshawar, Bahawalpur and Islamabad were awarded the best sporting
conduct trophy by the organisers.
In the morning play-off Lahore A recorded a 6-0 win over Sukkur to
finish third in the championship.
The teams
PAKISTAN RAILWAYS: Tahseen Safdar, Ayesha Ashar and Farrukh Naz
(Captain), Samreen Hashmi, Attia Amin and Saima Afzal; Samina
Naveed, Farhana Ayaz, Huma Shaikh, Romana Latif and Jamila
Muzaffar, Arifa Shakoor, Naila Moeen, Yaqoota Shaheen, Farzana
Rasool and Abida Tufail.
KARACHI B: Nusrat Afzal, Sadia Shaikh and Sadaf Yasin; Rizwana
Latif, Rabia Zafar (captain), Shabana Rizvi, Saeeda Khanum, Armaan
Khan, Khalida Perveen, Erum Mahboob, Naila Masood, Nargis Iqbal,
Khalida Mahboob, Sundle Ghafoor, Shazia Yousuf and Afshan Gul.
Umpires: Mohsin Ali Khan and Salman Zaidi.
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