------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 20 June 1998 Issue : 04/24 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from 
Pakistan's largest English language newspaper, the daily DAWN. DWS 
offers news, analysis and features of particular interest to the 
Pakistani Community on the Internet.

Extracts, not exceeding 50 lines, can be used provided that this 
entire header is included at the beginning of each extract. 

We encourage comments & suggestions. We can be reached at: 

     e-mail        dws-owner@dawn.com
     WWW           http://dawn.com/
     fax           +92(21) 568-3188 & 568-3801 
     mail          Pakistan Herald Publications (Pvt.) Limited
                   DAWN Group of Newspapers 
                   Haroon House, Karachi 74200, Pakistan 

Please send all Editorials and Letters to the Editor at

Make sure you include your full name, complete address and, if in 
Pakistan, your daytime telephone number.


    (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996 


*****DAWN - the Internet Edition ** DAWN - the Internet Edition*****
Read DAWN - the Internet Edition on the WWW !

DAWN - the Internet Edition is published daily and is available on 
the Web by noon GMT.

Check us out !

CONTENTS ===================================================================
NATIONAL NEWS Provinces to be convinced on dam issue: PM Mixed reactions over federal budget Softer US sanctions against Pakistan Karachi-Lahore route: PR plans to run 10 AC trains CED on freezers, refrigerators withdrawn PML punishes 5 errant MPAs PM seeks world leaders' help for resuming talks Cabinet body led by Jatoi to apprise PM Balochistan ADP pitched at Rs5420m July 10 set for loan recovery --------------------------------- BUSINESS & ECONOMY CBR levies 12.5pc standard rate Trade policy with $10bn export target next week, says Dar Warrants against 1,700 defaulters HBL limits flow of finances Land tax under consideration: Sindh budget PTCL to introduce 'time metering' Japanese recession, Asian crisis slow global growth Increase of 1261.3mw energy envisaged Businessmen 'point of view' not accommodated: CTA Pressure on rupee resources of banks Reduction in customs duties to help poor: Sartaj --------------------------------------- EDITORIALS & FEATURES Sultans and sycophants Ardeshir Cowasjee The K-bomb Irfan Husain A portentous scenario Riffat Hamid ----------- SPORTS Pakistan's squash image under a shadow ICC body to probe betting, match-fixing

Provinces to be convinced on dam issue: PM
LONDON, June 14: Prime Minister Nawaz Sharif said on Sunday that 
the government would take into confidence political parties of the 
"smaller provinces" over the construction of Kalabagh dam and try 
to convince them about the utility of the project.
"We will try to remove their fears over the construction of the dam 
by explaining to them technical details of the dam," the prime 
minister told reporters after holding a meeting with MQM chief 
Altaf Hussain at a hotel in London.
Mr Altaf Hussain told reporters that the issue was discussed at 
Sunday's meeting and he had expressed MQM's reservations over it.
"I emphasized upon the prime minister that he should take the 
elected political parties of smaller provinces into confidence and 
that a national consensus should be built before embarking on the 
project," the MQM chief said.
Prime Minister Nawaz Sharif, however, said all the provinces would 
benefit from the project. "All rural and urban areas will benefit 
from this dam," he said. "It will be beneficial for the Frontier, 
Punjab and Sindh alike."
He said work on the dam had been delayed because of political 
reasons and that he would brief all smaller provinces about the 
importance of the project.
"During my meeting I told the prime minister that there should be a 
consensus on the issue and even smaller political parties which had 

been elected in the past should be consulted and briefed about the 
project," Mr Altaf said.
Earlier, Prime Minister Nawaz Sharif and the MQM chief held an 
hour-long talks. The first 45-minute session was attended, on the 
government side, by Information Minister Mushahid Hussain and 
Minister of State for Water and Power, Mr Haleem Siddiqi.
>From the MQM side, Altaf Hussain's political adviser Nusrat Nadeem, 
Senator Mustafa Kamal and MNA Farrukh Naeem attended the first 
The second 20-minute session was a one-to-one meeting between the 
prime minister and Altaf Hussain.
An MQM spokesman told Dawn that during the first session, the prime 
minister briefed the MQM chief about the steps taken by the 
government, particularly the austerity measures, to face the 
economic hardships. He said the prime minister painted an overall 
view of Pakistan's economic situation and explained how the package 
announced by him would help the country gear up the hard days 
"Mr Altaf Hussain also took this opportunity to congratulate the 
prime minister, Pakistani scientists and the Pakistani nation for 
exploding nuclear devices," the spokesman said.
He said cooperation between the two parties at the national and 
provincial level was also discussed and Mr Altaf expressed concern 
over the recent spate of killings in Karachi. He said a list of MQM 
workers who were killed this month in Karachi, was handed over to 
the prime minister.

Mixed reactions over federal budget
By Our Staff Correspondent
FAISALABAD, June 13: People belonging to different walks of life 
and representatives of the trade and industry organizations have 
come up with mixed reactions about the federal budget for the year 
People belonging to the lower income group have observed that they 
will have to face the brunt because of the imposition of general 
sales tax at retail and manufacturing levels.
Divisional president of Farmers Welfare Association Mian Tahir 
Saeed welcoming the budget said that the government paid due 
attention to the agricultural sector by announcing various 
incentives for the farming community which would ensure self-
sufficiency in foodstuff.
He said that lifting of import duty on various agricultural 
implements including bulldozers, harvesters etc would lead to the 
maximization of farm outputs. He appreciated the government's 
decision for enhancing the credit facilities for the farmers. 
President, Anjuman-e-Tajran Haji Muhammad Nawaz Vora observed that 
the budget shattered the hopes of the hoarders who were expecting 
that due to tough economic situation prevailing in the country the 
government would impose heavy taxes on consumers goods due to which 
the prices of their goods would escalate. However, he said, that 
hoarders were now in the soup. He said that the reduction in the 
import duty on various items especially electronic goods, raw 

materials would discourage smuggling. 
President All Pakistan Processing Mills Association Haji Bashir 
Ahmad said the budget was free from many taxes which people 
The Faisalabad Chamber of Commerce and Industry (FCCI) termed the 
federal budget as a balanced one which would promote trade and 
In a statement issued here on Saturday acting president of FCCI, 
Ghulam Mustafa Wahgal, said that the incentives for the industrial 
and trade sectors would help boost the country's exports.
He was of the opinion that due to reduction of various taxes, the 
cost of manufacturing units would be reduced and this would lead to 
the enhancement of the productivity of the industrial sector.
Our Correspondent from Gujranwala adds: The Gujranwala Chamber of 
Commerce and Industry (GCCI) hailed the federal budget for 1998-99 
and hoped that the country would make rapid strides in agriculture 
and industry.
The GCCI president Haji Mohammad Shakeel, vice presidents Khawaja 
Tahir Hassan and Haji Mohammad Akram said that the government gave 
incentives in the sector of agricultural and it would be helpful 
for the promotion of agricultural development and self-sufficiency 
in food while the soft loans would help boost the industrial 
development by minimizing unemployment in the country.
However, they contended that inclusion of private limited companies 
with small investments for compulsory audit was not suitable. They 
also proposed that wealth tax should be abolished.
Our Correspondent from Bahawalpur adds: President Bahawalpur 
Chamber of Commerce and Industry Khawaja Muhammed Ilyas has 
welcomed the federal budget 1998-99.
In a statement issued here on Saturday president BCCI said that in 
the prevailing situation this was a suitable budget. He hailed the 
waiving of customs duty and sales tax on various items and said it 
would not affect the common man and instead promote the computer 
technology in the country.

Softer US sanctions against Pakistan
Shaheen Sehbai
WASHINGTON, June 18: The United States on Thursday announced much 
softer sanctions against Pakistan as compared to India, aimed at 
targeting the governments in the two countries rather than the 
Deputy Secretary of State Strobe Talbott told a State Department 
briefing the sanctions were aimed at sending a strong message to 
would-be nuclear testers, to influence Indian and Pakistani 
behaviour, target their governments rather than people and minimise 
damage to other US interests.
Observers said the specific sanctions announced by Talbott leave 
enough room for the Administration to impose these sanctions as and 
when thought necessary.
"There is not going to be any immediate impact on Pakistan," one 
Pakistani observer said.
The effect of specific sanctions against India totals about two 
billion dollars in stopped loans, guarantees and economic 

development while the figures released for Pakistan only show an 
immediate postponement of 26 million dollars, of which $25 million 
would be in IMF assistance.
Talbott stressed that these sanctions were not to hurt the people 
of the two countries but to show disappointment of the US 
government against the governments which tested nuclear devices 
against international will.
The sanctions announced include termination or suspension of 
foreign assistance under the Foreign Assistance Act, with exception 
provided for humanitarian assistance, food or other agricultural 
This category comprises $21 million in economic development 
assistance and housing guarantee authority for India, six million 
dollars in greenhouse gas programme for India, no new projects by 
Trade Development Authority for India. For Pakistan most of this 
assistance was already banned.
All foreign military sales under Arms Export Control Act have been 
terminated and licenses revoked for commercial sale of any item on 
US Munitions List.
Delivery of previously approved defence articles and services to 
India will be suspended.
All new commitments of US government credits and credit guarantees 
by EXIM, OPIC and Commodities Credit Corporation (CCC) have been 
halted but Talbott said the Clinton Administration will support 
legislation to permit CCC credits for food and agricultural 
This is likely to benefit Pakistan for import of almost one to two 
million tons of wheat this year.
OPIC coverage has been stopped for India and this will hurt New 
Delhi by about $300 million annually. Pakistan has no such coverage 
as it was just recently opened under the Harkin/Warner Amendment.
EXIM was also recently opened for Pakistan with one request for 1.1 
million dollars pending while India will face blockage of $500 
million under EXIM guarantees.

Karachi-Lahore route: PR plans to run 10 AC trains
ISLAMABAD, June 19: Pakistan Railways is likely to enter into a 
joint venture with a consortium of private banks to run 10 air-
conditioned lower class trains between Karachi and Lahore in order 
to increase its earnings by using some of its idle assets, an 
official source told Dawn here on Friday.
The railways has the capacity to run 60 trains on Karachi-Lahore 
route. At present only 28 trains are using the track, the source 
pointed out. At the same time, the PR ran a deficit of about Rs3 
billion last year.
Rectification of the situation and improvement in the revenue 
situation would require at least Rs850 million, according to 
conservative estimates. The government, however, was not in a 
position to provide even a fraction of that amount, the source 
To be financed by the private sector on profit-sharing basis, the 
proposed scheme envisages the induction of non-stop express trains 
on the busy route.
The proposal was considered particularly plausible because the 
banks had ample liquidity to invest in the medium-level venture, 
that moreover are almost risk-free. All these trains, the source 
further stated, would be insured.
Thus the scheme also holds out the promise to cast multi-
dimensional beneficial effects on the overall economic situation in 
Pakistan by correspondingly increasing the business for insurance 
companies, besides easing the problems of the travelling public.
The chairman, Pakistan Railways Board, Masud Ahmed Daher, said the 
proposed trains would be operated entirely by the joint venture and 
its earnings would be kept in a separate account and securitised. 
The internal net return from the scheme was expected to be as high 
as 24 per cent.
On the present estimates, the first three or four trains would come 
on the track by February next year, Mr Daher said.
According to further details available to this correspondent, the 
PR would make bankable proposals for converting 125 coaches now 
lying idle with it into lower AC facilities and another 25 into 
power vans to provide electricity and AC to the trains. The 
conversion cost of these coaches has been estimated as Rs4 to 5 
million each.
The value of the presently discarded railway chassis and bogies 
would be the equity of PR, while the private sector (banks) would 
invest in body structure of railway coaches.

CED on freezers, refrigerators withdrawn
Bureau Report
ISLAMABAD, June 19: Finance Minister Sartaj Aziz announced here on 
Friday various changes in the budget, including the withdrawal of 
central excise duty(CED) on local refrigerators and deep freezers, 
arms and ammunition, and reduction of duty from Rs6296 to Rs5500 
per ton on the import of furnace oil.
"The total revenue impact of these reduction in duties and 
readjustment in various items would be to the tune of about Rs3 
billion", he said adding that the government would cover up this 
gap through alternative resource mobilization.
He said no new tax had been imposed in the budget and held out an 
assurance that the government would not announce any mini-budget 
during the next financial year.
Winding up the budget debate in the National Assembly, he said that 
ceramic and sanitary wares, synthetic and artificial fibres, tyres 
and tubes, paper sacks, glass and glass products had also been 
exempted from central excise duty.
Giving details, he said the reduction in the import duty on 
refrigerators and deep freezers from 45 per cent to 25pc had 
affected the local industry and so 10 per cent CED on these two 
items had been withdrawn.
PML punishes 5 errant MPAs
Raja Zulfikar

ISLAMABAD, June 17: The disciplinary committee of the Pakistan 
Muslim League on Wednesday disqualified five of its MPAs who had 
sponsored a no-trust motion against Balochistan Chief Minister 
Akhtar Mengal.
Similar cases against other PML MPAs insisting on removing the 
provincial chief minister through a no-confidence move are under 
consideration, it was learnt.
It may be noted that in reply to a show-cause notice issued by 
their party, the PML MPAs had, earlier, justified their attempt to 
remove Balochistan chief minister.
In a formal comment on the development, the PML disciplinary 
committee noted: "After considering the contents of the replies of 
the MPAs, the committee proceeded to decide the cases and 
disqualified the members who will no longer be entitled to 
participate or vote in the proceedings of the Balochistan 
If the 11 members of the PML in the Balochistan Assembly are 
disqualified, it will virtually reduce the party strength in the 
province to naught. The party's secretary-general, Sartaj Aziz, 
defended the disqualification notices on the rebels.
Talking to Dawn, Sartaj Aziz said, "This is a matter of party 
discipline and we will proceed against them if they violate 
discipline and make such important decision on the local level. 
Alliances are made in the larger interests not on the local level."
The affected members now have a week's time in which they can 
appeal to the head of the party for review of the disciplinary 
committee's decision of disqualification.
Those disqualified by the PML disciplinary committee are: Zulfiqar 
Magsi, Malik Sarwar Khan Kakar, Saeed Ahmed Hashmi, Jaffar Khan 
Mandokhel and Sardar Abdul Rahim Khetran.
The rebellious move comes ahead of voting on June 20 on the no-
confidence motion which already stands admitted against Chief 
Minister Akhtar Mengal. He has since attacked the federal 
government for attempting to weaken the provincial set-up and 
described the moves as in line with the past PML traditions.

PM seeks world leaders' help for resuming talks
Nasir Malick
LONDON, June 16: Prime Minister Nawaz Sharif has told Britain that 
instead of imposing sanctions on Pakistan, the international 
community should help initiate a meaningful dialogue between India 
and Pakistan to resolve the core issue of Kashmir.
The prime minister told British Minister of State for Foreign 
Office Derek Fatchett, who called on him on Tuesday morning to 
deliver a letter of Prime Minister Tony Blair, that sanctions had 
never succeeded in the past and would remain counter-productive in 
During his 30-minute meeting at Hilton hotel, where the Pakistani 
delegation is staying, Mr Fatchett, who is in charge of South Asian 
Affairs, also discussed with the prime minister the situation in 
South Asia, including Kashmir.

This was an unusual call on as normally no official contacts are 
made during private visits.
Foreign Secretary Shamshad Ahmad briefing reporters after the 
meeting said Mr Sharif expressed his "disappointment" over the 
blocking of international loans by several countries in "pursuit of 
their uni-dimensional non- proliferation agenda."
Mr Fatchett confirmed to Dawn that the issue of Kashmir came up 
during his meeting with Mr Sharif.
"My prime minister recognizes that there is a need to encourage a 
dialogue between India and Pakistan on all fundamental issues and 
Kashmir is a fundamental issue and a key issue," Mr Fatchett said.
He said he had a useful meeting with Mr Sharif during which he 
delivered a letter from Prime Minister Tony Blair in which the 
British premier expressed his views on NPT and CTBT.
Cabinet body led by Jatoi to apprise PM 
By Sabihuddin Ghausi

KARACHI, June 15: A committee of Sindh Cabinet led by the Chief 
Minister Liaquat Jatoi is meeting the Prime Minister Nawaz Sharif 
on Thursday in Islamabad to apprise him of the precarious financial 
situation of the province.
The Committee, according to well placed sources may ask for a 
revision of the 1996 National Finance Commission award. 
According to official sources a detailed memorandum is being 
prepared for submission to the prime minister. The memorandum 
squarely blames the authors of the 1996 award of National Finance 
Commission who fixed Rs39.83 billion expenditure benchmark for 
Sindh for the current fiscal year 1997-98.
The committee may also request prime minister to consider working 
out a new arrangement for resources distribution among the 
provinces that should take into account the revenue generation 
capacity, natural resources, economic and social backwardness, 
reward for efforts to improve social and physical infrastructure 
facilities and raising additional resources.
"Population alone should not be the criterion for allocation of 
resource distribution among the provinces as it runs counter to 
government's programme of bringing down population growth rate 
level", a well placed source said.
The NFC was formed by the caretaker set-up of the Prime Minister 
Malik Meraj Khalid and gave its award on February 3, 1997 when 
elections were being held for national and provincial assemblies in 
the country. All the financial problems that grip Sindh and 
Balochistan originates from this NFC award.
"This benchmark of Rs39.83 billion was fixed wrongly on the 
assumption that Sindh's expenditure during 1996-97 was Rs36.07 
billion", a well placed source in Sindh government said. According 
to this source the 1996-97 Sindh budget initially projected total 
expenditure budget at Rs41.13 billion. But after revision of the 
budget, mainly because of bad performance of Central Board of 
Revenue resulting in low tax collection was cut down by Rs5.06 
Sindh government now contends that fixing of Rs36.07 billion 
expenditure benchmark in 1996-97 for the purpose of working out 
future expenditure of the province has financially crippled the 
province. "Unless federal government rectifies it from backdate, 
Sindh will never be able to recover from the shock inflicted on it 
by the authors of the 1996 NFC award", the source asserted.
"In 1997-98 Sindh should have been given about Rs43 billion share 
to finance the bulging current expenditure budget and also to 
provide some amount for development", he pointed out.
But what actually happened was that just before presentation of the 
1997-98 budget the federal government reduced even the suppressed 
share of Rs39.83 billion to Rs32.31 billion.
As if all these exercises to deny Sindh of its legitimate share in 
divisible pool were not enough, the federal finance ministry 
applied its own cuts on Rs2.7 billion monthly instalment share of 
the province and almost every month in last 11 months (July 1997 to 
May 1998) it delayed in remitting the amount.
Officials now report of receiving only Rs21.8 billion from the 
divisible pool till end May when Sindh should have received at 
least Rs30 billion.
"All the provinces including Sindh were penalized because of the 
poor performance of the Central Board of Revenue that failed to 
recover Rs324 billion targetted taxes",the source said. Finally the 
CBR is reported to have failed in collecting even Rs290 billion 
taxes in 1997-98.
According to this source the Punjab Chief Minister Shahbaz Sharif 
in the first meeting of NFC Monitoring Committee held in March last 
at Islamabad raised two pertinent questions.
"Why should provinces be penalized if CBR failed to do its job in 
collecting taxes and why not federal government be asked to bring 
down its expenditure rather than asking the provinces for it", the 
Punjab Chief Minister is reported to have asked.
"Real nation building task is done by the provinces and not the 
federal government", a well placed source in Sindh government 
He said that it was the job of the provinces to develop social and 
infrastructure facilities by providing primary, secondary and 
technical education facilities, improvement of healthcare in cities 
and villages, construction of network of roads, assurance of water 
supply and construction of sewerage facilities and maintenance of 
irrigation canals network, expansion in agricultural extension 
services and what not.
"All these efforts of the provinces eventually lay the foundation 
on which the whole structure of social and economic progress is 
raised", he pointed out.
With these points and arguments, the Sindh Cabinet is filing claim 
of about Rs26 billion. These are Rs7.8 billion shortfall in receipt 
of share in the divisible pool, Rs11 billion for providing more 
than 2 lakh 32 thousand acres of lands to federal government 
agencies and over Rs7 billion on account of excessive and 
presumptive billing by WAPDA.
Unless these conditions are met, the sources said that Sindh would 
not be able to meet its financial obligations of 450,000 employees 
and also to those contractors and companies which provided services 
and goods to the provincial government, clearance of State Bank 
overdraft of Rs11 billion and also to carry out development work.

Balochistan ADP pitched at Rs5420m
QUETTA, June 18: Balochistan Annual Development Programme envisages 
a total development expenditure to the tune of Rs5420m for the year 
1998-99 with special focus on development in social and 
infrastructure sectors.
This includes Foreign Project Assistance (FPA) of Rs3420m. 
Provincial contribution will be to the tune of Rs989.330m against 
the cash component of Rs2000m.
The other elements of the cash component are Soft Federal Loans of 
Rs999.170m and a Japanese Grant of Rs11.5m.
The total number of schemes, included in the Public Sector 
Development programme, are 260 including 189 on-going and 71 new 
schemes. Out of these, 75 schemes are in Social Action Programme 
(SAP) and 185 in Non-SAP sectors with financial outlays of 
Rs2423.311m (FPA Rs1837.760m) and Rs299.689m (FPA Rs 1582.240m) 
Major share of the development allocations have been made for the 
projects/schemes that have direct bearing on the economic growth of 
the province.
Education has been the highest priority in the budget 1998-99 with 
almost 35% of the PSDP have to go to education sector compared to 
26% in 1997-98. Out of 22 scheme SAP Education schemes (15 on-going 
and 7 new), 9 would be completed during 1998-99.
During the next financial year 568 primary school buildings, 565 
addition class rooms, 461 latrine blocks, 400 primary schools 
boundary walls and 20 middle schools will be completed; 80 primary 
schools will be upgraded to Middle level, and 100 additional class 
rooms will be constructed in over crowded high schools. Besides, 
work on college building at Tump, Buleda, Sorab, Drug, Mach, D.M. 
Jamali will continue.
July 10 set for loan recovery
By Ihtasham ul Haque
ISLAMABAD, June 13: Serious action will be taken against the loan-
defaulters if they did not pay back by July 10, announced Finance 
Minister Sartaj Aziz at a post-budget press conference here on 
The finance minister said the government had evolved a strategy to 
take serious action against the defaulters. "We would wait till 
July 10 and then the defaulters will be taken to task", he warned.
There are Rs150 billion to be recovered from those who have not 
returned their loans. The finance minister said the prime minister, 
in a meeting Friday night with the State Bank governor, had asked 
him to go ahead with a loan recovery drive. "This time they (loan 
defaulters) cannot escape punishment," assured Sartaj Aziz.
The tax-evaders also should call it a day as, he said, from now on 
they, too, would face penalties and might even be sent to jail.
Defending his budget for 1998-99, the finance minister said its 
major thrust was on substantially increasing the revenue and not on 
imposing more taxes. "Strategically, it is a very far reaching 
budget," he claimed.
NON-DEVELOPMENT EXPENDITURE: He said the non-development 
expenditure would increase from Rs198 billion during 1997-98 to 
Rs220 billion during 1998-99 instead of going up to Rs290 billion 
under normal growth, thus saving a huge chunk of Rs70 billion.
Sartaj Aziz pointed out that one of the major reasons to get the 
budget deficit reduction was the substantial cut in the non-
development expenditure. "Therefore it would not be that difficult 
to achieve GDP budget deficit target of 4.6 per cent during the 
next fiscal."
DOCUMENTATION OF ECONOMY: The finance minister said one of the 
salient features of the budget was to drastically improve revenues 
specially by achieving the documentation of the economy. He was of 
the view that new measures would force the businessmen to get his 
business documented and that tax evaders would now have to face a 
very difficult time.
"And that is why I can tell you that we will be able to generate 
Rs50 billion additional revenues during 1998-99," he said, 
conceding that revenue slippages did occur in the current financial 
IT ON PHONE BILLS: He said more than 200,000 telephone subscribers 
were evading income tax. Giving details about imposition of income 
tax on telephone bills, he said all monthly bills up to Rs1,000 
would be exempted from income tax. Rs50 income tax would be charged 
on the bills exceeding Rs1,000 up to Rs2,000; Rs100 on more than 
Rs2,000 up to Rs3,000; Rs200 on more than Rs3,000 to Rs5,000; and 
Rs300 income tax would be charged on phone bills above Rs5,000.
However, he said, the amount charged as income tax would be 
adjusted in the tax returns.
EXPANDING TAX BASE: Sartaj Aziz assured that broad-basing of the 
tax system would be achieved through both general sales tax (GST) 
and income tax. He said initially 3,000 tax payers were being asked 
to pay GST through the invoice-based system.
The finance minister dispelled the impression that the consumers 
would have to pay 12 per cent GST. "In fact our consumers will be 
paying only one per cent of the Value Added Tax (VAT) as this tax 
will basically be collected at the manufacturing stage."
He said the tax collection, specially of the GST, was being made a 
normal voucher-based system so that everybody should pay taxes.
FOREIGN REMITTANCES: He said lots of incentives had been given to 
the Overseas Pakistanis which helped to collect remittances worth 
$1.4 billion during the current financial year. However, he 
admitted that remittances transmitted through Hundi were almost 
He said foreign remittances had increased by 23 per cent despite 
lots of problems, including that of Hundi mode of illegal 
remittance. He told a reporter that the government was looking into 

the complaints of the overseas Pakistanis that they were not 
getting proper attention from Pakistani banks due to which they 
were forced to send their remittances through Hundi.
KALABAGH DAM: Responding to a question, Sartaj Aziz said decision 
had been made to construct the Kalabagh Dam. He assured that it 
would not have any negative impact in Sindh or NWFP. He said all 
the technical studies had approved building of the dam to remove 
shortage of electricity. Had this dam been built in the 80s, 
Pakistan would have not faced shortage of power or needed the IPPs, 
he added.
He regretted that the issue had been unnecessarily politicized. It 
would cost $4-5 billion to construct the dam he informed.
Asked about the impact of the sanctions imposed by the developed 
world, the finance minister claimed it would not have any serious 
problem for Pakistan.
DEFENCE BUDGET: When asked why the government had not considerably 
increased the defence budget compared to India, he said India's 
increase was 14 per cent which also included 7 per cent increase in 
the salaries of the defence employees. Therefore, the real increase 
in India's budget was only 7 per cent.
BANK BORROWING:The finance minister said the total bank borrowing 
for the next financial year was Rs148 billion. "But it includes 
more of non-bank borrowings which is less inflationary."
Asked what would happen in case the World Bank and the Asian 
Development Bank stopped lending to the WAPDA, he said it would 
cause a delay of one or two months. "But since we are reducing 
losses and thefts in WAPDA, things were likely to be greatly 
CBR RESTRUCTURING: The finance minister did not agree with a 
reporter that restructuring of the CBR was being done through 
stereotyped measures. He said consultants of repute were looking 
after the CBR restructuring.
To a question, he said currently Pakistan was maintaining $1.1 
billion of foreign exchange reserves.
AGRICULTURE TAX: The finance minister said the agriculture tax had 
been levied and being recovered by the provincial governments. He 
said the Punjab would recover Rs2.7 billion agriculture tax against 
Rs2 billion during the last year.
To another question he replied that there was no restriction on 
Pakistan's trade with other countries. He said sanctions would only 
stop aid not trade.
He agreed that low-paid employees did not get any increase in their 
salaries. However, he promised to do that if sufficient resources 
could be collected.

CBR levies 12.5pc standard rate
By Our Correspondent
ISLAMABAD, June 13: The Central Board of Revenue has announced 
abolition of the Fixed Sales Tax Scheme and has imposed the 
standard rate of 12.5 per cent on more than 1,200 industrial units 
enjoying the facility.
The CBR notification No 577 (I)/98, issued here on Saturday, 
rescinds the 57 notifications issued in connection with the FTS on 
December 18 and 19, 1997. These notifications are SROs (I)/97 Nos 
1248 to 1308.
Apart from abolition of the FTS, the CBR has also announced 
abolition of the right to claim input tax on goods required 
otherwise than as stock in trade by a registered person dealing in 
the following goods, through SRO 578 (I)/98, dated June 12, 1998: 
vehicles falling in chapter 87 of the First Schedule to the Customs 
Act, 1969, building materials, office equipment (excluding 
electronic cash register), furniture, fixture and furnishings; 
electrical and gas appliances; telecommunication equipments; 
generators and generating sets; wires and cables and ordinary 
electrical fittings; crockery, cutlery and utensils etc; supply of 
food, beverages, garments, fabrics and consumption on 
Through another notification No 581 (I)/98, dated June 12, 1998, 
the CBR has rescinded the fixed amount of Sales Tax on processed 
SRO on ship-breaking: The Central Board of Revenue has announced 
new rules for import of ships for breaking.
Notification No SRO 542 (I)/98 of June 12, 1998 says: the duties 
leviabble on import of ships for breaking may be paid in accordance 
with the following manner:
i) First instalment of 40 per cent of the total duty payable as per 
declaration by the importers (at the time of filing bill of entry;
ii) Second instalment of 30 per cent (within 30 days of payment of 
first instalment);
iii) Third instalment of remaining 30 per cent along with the 
differential, if any based on final assessment (within 30 days of 
the payment of second instalment).
Through SRO 550 (I)/98 of the same date, the rates for import duty 
of indigo blue have been put at 10 per cent, plastic colours used 
in manufacture of infusion giving sets and disposable syringes at 
35 per cent, raw skins at zero per cent, finished and patent 
leather at 15 per cent, wool at zero per cent, beadwear at 20 per 
cent, second hand/reconditioned combined harvesters/threshers at 10 
per cent, second hand mobile phone sets, and energy saving lamps at 
10 per cent.
ST exemptions removed: The Central Board of Revenue has announced 
removal of sales tax exemptions from July 1, 1998, on seven major 
categories of machinery and components, by suppressing the previous 
order of March 29, 1997.
The categories which have so far enjoyed these exemptions include: 
plant and machinery, operated by power of any description, to be 
used for the manufacture of taxable goods by the registered 
persons; plant and machinery to be used for manufacture of POL 
products, LPG, drugs and medicines, edible oils, fertilizers, 
insecticides, pesticides, fungicides, herbicides, weedicides, 
cement, exploration and extraction of crude petroleum oil/natural 
gas, generation of electrical energy. Apparatus and appliances, 
including metering and testing apparatus and appliances 
specifically adapted for use in conjunction with machinery; 
mechanical and electrical control and transmission gear adapted for 
use in conjunction with machinery; component parts of machinery 
identifiable as for use in or with such machinery but excluding 
maintenance spares for current use.
The CBR has also announced through SRO 575 (I)/98 of June 12, 1998, 
exemption from additional tax payable on principal amount of ST due 
if it is paid by June 30. The persons affected would be those 
falling under the Fixed Tax Scheme, importers registered on and 
after January 1, 1998, steel melters and re-rollers who did not pay 
ST as per minimum benchmark of consumption of electricity, 
distributors, wholesalers and retailers of mild steel products with 
taxable supplies from July 1, 1997, manufacturers/suppliers of 
knitted or woven fabrics, garments and made ups and other taxable 
goods who failed to pay the tax due, and persons against whom 
arrears of tax are outstanding in terms of an audit report, demand 
notice, assessment order or adjudication order.

Trade policy with $10bn export target next week, says Dar
Ihtashamul Haque
ISLAMABAD, June 19: The new trade policy, likely to be announced on 
June 23, will offer a lot of incentives to exporters to help 
achieve the proposed $10 billion export target for 1998-99.
"The new policy will definitely be announced by Wednesday next to 
offer host of incentives to our exporters in order to substantially 
increase our exports", said Minister for Commerce and Investment 
Ishaq Dar.
He told Dawn here on Friday that the new policy was most likely to 
be announced on June 23. "Or may be delayed for a day and will be 
announced after the approval of the special Cabinet meeting to be 
held the same day", he further stated.
Responding to a question the minister for commerce said that the 
main thrust of this policy was to greatly facilitate the country's 
exporters. "This time we really want to help and facilitate our 
exporters in a big way".
Dar said that the government has tried to introduce new changes 
that should not only help the exporters but also ensure to have 
more than proposed $10 billion export target achieved during the 
next financial year.
"We want to make the life or our exporters easy", said the minister 
for commerce and investment.
Asked what kinds of incentives and concessions were likely to be 
offered to the exporters in the new trade policy, Dar said that 
mostly they were aimed at providing relief with regard to 
administrative problems being faced by them every now and then. " 
Then we will make sure that there is no duty no drawback".

Warrants against 1,700 defaulters

GUJRANWALA, June 19: Over 250 defaulters of excise and taxation 
department were hauled up, while warrants of arrest against 1,700 

defaulters were issued by the department here on Friday.
It was reported that a former MNA and two former MPAs were also 
among the defaulters and the raiding teams of excise department, 
headed by magistrates and tehsildars recovery, were still 
conducting raids at the residences and factories of the defaulters 
when this report was filed. It could not, however, be ascertained 
whether the said MNA and MPAs met the same fate as was reserved for 
the ordinary lot of defaulters.
According to the department at least Rs 40 million was outstanding 
against the defaulters and the majority of them are said to be 
close relatives of influential people.

HBL limits flow of finances
Mohiuddin Aazim
KARACHI, June 18: The state-run Habib Bank has restricted the flow 
of fresh finances by capping the overall finances of every region 
to the level of 13th June, 1998. The reason is simple. The rupee 
resources of all banks including HBL are declining with mounting 
withdrawals in local currency from the foreign currency accounts.
Sources close to HBL say a letter originating from the retail 
banking group asks all regional chief executives "not to increase 
the overall finance" from the level of 13th June, 1998. They say 
that the letter signed by the head of retail banking Aneeq Khawar 
further asks them "to chalk out a monthly plan for June, July and 
August 1998 for the expected withdrawals from F.C. deposits and how 
to arrest this shortfall."
HBL President Shaukat Tarin says the bank has not imposed any ban 
on fresh lending as such. "It is rather large scale disbursement 
that has been suspended for the time being," he told Dawn on 
Tarin defended the bank action on the ground that its rupee 
resources were under pressure-a normal phenomenon by the close of 
every fiscal year. He said state-run banks face sort of liquidity 
crunch at the end of fiscal year as they had to clear their 
liabilities towards the government. He made no mention of huge 
withdrawals from foreign currency accounts which also have put the 
rupee resources of the banks under pressure.
He said HBL had disbursed Rs 4 billion for commodity operations 
alone during last two weeks.
Sources close to HBL say the retail banking group has asked all the 
regional chief executives that they can increase their finances to 
the extent the finances have been adjusted/reduced after 13th June, 
1998. The group executive has, however, warned them that the 
overall finances should not go beyond the level of 13th June adding 
that the regional chief executives have also been asked to convey 
to the retail banking group the expected reduction in finances up 
to 30th June and during July and August 1998.
They say implementation of this instruction has started adding that 
a day to day branch-wise monitoring has also begun. The sources say 
some branches have approached the retail banking group seeking a 
clarification on whether the instruction applies also on running 
finances and how to treat those borrowers whose credit limits are 
already sanctioned and disbursement is in the pipeline.
The sources say the retail banking group has also warned all 
regional chief executives of HBL of possible heavy withdrawals from 
foreign currency deposits during June, July and August under 
present situation.
They say the group has asked them to chalk out monthly plans to 
estimate expected withdrawals from foreign currency accounts during 
these three months and to meet the shortfall. They say the regional 
chief executives have also been asked to advise the field 
functionaries of HBL not only to increase overall deposits against 
the targets allocated to them but also get foreign currency 
deposits converted into rupee deposits of various kinds.
They say that the regional chief executives have also been asked to 
provide estimates of expected withdrawals from FCY accounts from 
15th June to 30th June 1998 and during July and August.
Land tax under consideration: Sindh budget
KARACHI, June 18: Sindh Budget 1998-99 is the story of unfulfilled 
federal commitments and deductions at source of grossly inflated 
WAPDA and KESC bills, resulting in challenges to the budget-makers 
to maintain the status quo.
Federal transfers awaiting release comprise the share of Sindh 
under NFC Award (Rs7.9 billion), besides Rs644 million on account 
of 50 per cent share of the expenditure incurred on 
Rangers/Frontier Constabulary for the maintenance of law and order. 
The already established refund against WAPDA is Rs7.4 billion. That 
makes a very seizable amount of Rs15.944 billion.
But for these awaited transfers, the province would have easily 
cleared the State Bank's overdraft of Rs11 billion besides making a 
reasonable allocation for development.
So far as the NFC Award share is concerned, the share of the 
province for 1997-98 was initially fixed at Rs39.8 billion. It was 
on the basis of actual expenditure for 1996-97 i.e. Rs41.1 billion 
minus Rs5.1 billion imposed as economy cut. However, before the 
finalization of the 1997-98 budget, this Rs39.8 billion was reduced 
to Rs31.4 billion and actual releases todate were Rs23.5 billion. 
Thus, if the initial figure (Rs39.8 billion) is taken into 
reckoning, the NFC share jumps from Rs7.9 billion to Rs16.3 
In this background, the budget-makers adopted the more orthodox 
method of projections for 1997-98 on the basis of the actual for 
the first 10 months of 1997-98 and they hope to tackle the crisis 
by adopting a host austerity measures besides, the across the board 
50 per cent cut in non-development expenditure ordered by the prime 
Briefing newsmen at the post-budget press conference today, Chief 
Minister's Advisor for Finance, Syed Sardar Ahmad, said that in the 
budget estimated for 1997-98, the revenue expenditure was Rs47,309 
million. During the first 10 months of the year, actual expenditure 
was contained to Rs31,338 million against the proportionate (for 10 
months) of Rs39,424 million, i.e. Rs8,086 million less.
Giving details of current expenditure of Rs31,338 million during 
the first 10 months of 1997-98, he said it comprised current 
revenue expenditure Rs26,597 million, current capital expenditure 
Rs1,815 million, development revenue expenditure Rs489 million and 
development capital expenditure Rs2,436 million.
On the other hand, total receipts of Rs29,529 million for the first 
10 months of the year comprised federal releases Rs23,607 million, 
provincial taxes Rs5,806 million, and capital receipts Rs179 
With actual receipts (for first 10 months) at Rs29,592 million and 
expenditure of Rs31,338 million, the excess expenditure over income 
was thus conditioned at Rs1,747 million, he said.
Sardar Ahmad also gave details of current revenue expenditure 
(Rs31,338 million) during the first 10 months of the year. It is 
General Administration Rs3,353 million; Law and Order Rs3,757 
million; Community Services Rs818 million; Social Services Rs10,383 
million; Subsidies Rs27 million; Debt servicing Rs5,847 million; 
and Miscellaneous Rs14 million.

PTCL to introduce 'time metering'
By Ihtashamul Haque
ISLAMABAD, June 16: Minister for Finance Senator Sartaj Aziz 
chaired here on Tuesday the meeting of the Economic Coordination 
Committee of the Cabinet (ECC) which decided to offer 50 per cent 
First Year Allowance (FYA) to the housing companies on Plant 
Machinery and Equipment (PME).
The ECC considered various tax concessions for the housing industry 
and decided to offer 50 per cent FYA to those housing companies 
which were engaged in the development of housing schemes.
The committee also endorsed the tariff re-balancing proposals put 
forward by Pakistan Telecommunication Company Limited (PTCL) to 
meet competition and to be in line with international trends in 
It was agreed that PTCL would reduce Nation Wide Dialling (NWD) 
charges by an average of 15% and reduce the international lease 
lines charges to internet research providers by up to 20%.
For internet usage by educational and research institutions there 
will be rebate of 50% in up-front charges with 20 free hours, with 
a special package for Rs 2000 per month for registered users with 
unlimited local calls.
PTCL will also introduce a five minute pulse (time metering) for 
local calls. The customer will be given a beep warning after four 
minutes. The monthly line rent is being increased by about Rs 24 to 
Rs 180 inclusive of CED but the installation charges for a new 
telephone are being reduced from Rs 4150 to Rs 4000.

The tariff package is expected to promote the development of the 
telecommunications sector by enabling it to provide its services on 
a competitive basis.

The Committee further considered the export of metals by foreign 
mining companies and decided that the issue would be dealt with in 
the forthcoming trade policy to be announced by the commerce 
minister shortly.
The ECC reviewed the prices and availability of essential items in 
the country. It noted that the prices of essential commodities in 
general had continued to stabilize.
The committee was presented with a report on vegetable ghee prices 
and was informed that international prices have recently shown a 
favourable trend. It directed the ministry of industries and 
production to continue to monitor retail price of ghee.
The committee also reviewed the various recommendations of the 
prices committee relating to the sugarcane crop. It was informed 
that last year the government had raised the support price by 
almost 46%. It was further informed that the yield of sugarcane per 
acre in Pakistan was low compared with that in other countries. 
Accordingly, there was a need for extensive research efforts which 
are to increase the yield per acre.
Japanese recession, Asian crisis slow global growth
Masood Haider
NEW YORK, June 16: The Asian economic crisis coupled with the 
reports of impending Japanese recession sent the stocks tumbling on 
Wall Street on Monday. It was the second biggest drop of the year. 
The Dow Jones industrial average plummeted 207.01 points to 
8,627.93, its biggest one-day fall since Jan 9.
"That's a very meaningful drop," said an investment counsellor and 
on the Wall Street . "The Dow lost more than 2 per cent of its 
value in one day. I think it could lose another 200 points before 
the downturn ends."
However, several market analysts tried to underplay the impact of 
the roller coaster market saying "As it is the stocks on the New 
York Stock Exchange are overvalued a little more adjustment won't 
Japan, which many hoped would be the Asian markets saviour, 
announced last week that its economy shrank sharply in the quarter 
that ended in March, amounting to its precipitous annualized 
decline since World War II. The yen, a barometer of Japan's 
economic weakness, fell to an eight-year low against the dollar on 
Monday, further elevating fears throughout Asia.
The Clinton administration has been warning the Japanese that a 
full-blown recession in Japan could prove the time bomb of the 
Asian crisis, setting off a sharp fall of the yen and, in turn, a 
second wave of the economic contagion that is spreading to 
investors around the globe.
In a report, the New York Times says that "now that appears to be 
what is happening. President Clinton's economic advisers, weary of 
jawboning their Japanese counterparts, say the United States has 
very little leverage remaining over Tokyo."
In fact, the Times report says that in internal White House 
arguments in recent days, some of Clinton's advisers have argued 
that Japan's hidden strategy is to let the country's currency fall 
- making Japanese goods less expensive in the United States - even 
if the fall undermines other countries in Asia that are struggling 
to emerge from a yearlong nightmare, or worsens troubles in Russia 
and Latin America.
The yen's drop against the greenback is acting as something of a 
double brake on other economies around the world. Japan's recession 
is making it nearly impossible for other Asian nations (to say 
nothing of American carmakers and other manufacturers) to export 
more goods into Japan.
Meanwhile, as the yen falls Japanese goods push out products that 
other ailing Asian nations are trying to export to the United 
States and Europe, particularly Korean cars, steel and 
"What is happening in Japan is hitting all of its neighbours - 
Korea, Thailand - and it is triggering a huge amount of instability 
around the world," Charlene Barshefsky, the US trade 
representative, said in an interview with the Times.
Meanwhile ,the continued Asian economic slump also raised concern 
that profits for companies in the S&P 500 won't meet analyst 
forecasts for more than 10 per cent growth in the second half.
Estimates for the third and fourth quarters also have come down, 
though they're still well above 10 per cent. The analysts expect 
11.6 per cent growth in profits in the third quarter and 16.4 per 
cent in the fourth quarter.
Investors fear that prices will bottom out if earnings do not come 
in at or above expectations, and are dumping shares now in 
anticipation of that event.
"Profits are definitely softening," said a Wall Street analyst 
here. "Global growth and demand is slowing.
Let's face it: We're in the eighth year of the business cycle, and 
things have to slow down. After three years of 30-plus returns, you 
have to wonder. We'll be lucky to have a positive year for the S&P 
The S&P 500 index slid 21.83 to 1,077.01. The technology-laden 
Nasdaq composite index sagged 29.30 to 1,715.75.
The declines in the indices masked a steeper slide in the broad 
market, where declining stocks outnumbered advancers by an 11-to-4 
ratio on the New York Stock Exchange.
Oil stocks were the biggest losers, as crude oil fell to its lowest 
price in 12 years. There are indications that crude oil prices 
could go even lower, market analysts here predicted. "Futures for 
oil delivery in 1998 hit their lowest point in 24 years," an 
analyst pointed out. "That raises the concern that oil-dependent 
countries won't be able to afford to buy goods."
"What you're really seeing is a truly global market," said an 
investment banker at a major bank here. If a malady impacts in 
Asia, it really becomes a flu almost everywhere else."
The New York Times said in a report that "for American companies 
that do business in Japan and throughout Asia, the prospects are 
growing dimmer for a recovery anytime soon."
Earlier this year, analysts predicted that global companies would 
be hurt in the first half of the year by Asia's troubles, but that 
earnings would pick up in the second half. Now, more and more 
analysts are pushing back their estimates of a recovery.
Although companies have been reluctant to say much about how Asia 
will lower earnings, Boeing, National Semiconductor, Ford, Callaway 
Golf, and Analog Devices have all hinted that their profits will 
continue to be pinched in the second half.
For the year, analysts now expect profits at the companies in the 
Standard & Poor's 500 to rise 9.2 per cent, down from a 13.9 per 
cent estimate at the beginning of the year, according to a survey."
The eyes of the international business community are on Wall Street 
hoping it would not slide further. However, all said and done the 
impact of the Asian flu is foreboding, increasingly underscoring 
the global factor.

Increase of 1261.3mw energy envisaged
ISLAMABAD, June 16: An addition of 1261.3 megawatts in the total 
energy generation capacity is envisaged under the Public Sector 
Development Programme for 1998-99, according to an official source.
An allocation of Rs 32.7 million has been proposed for power sub-
sector including budgetary allocation but excluding non-budgetary 
allocations. In 1997-98, the power sub-sector was allocated Rs 31.3 
bn including budgetary allocation. The revised estimate during the 
year was, however, slightly higher -Rs 31.4 billion.
This, however, includes only 2.8 MW to be contributed by the public 
sector (Reshun Hydel). The entire remaining increase in generation 
capacity would be made possible by the commissioning of eight new 
plants in the private sector. These are: Fuji Kabirwala (157  MW), 
Saba Power Co (114 MW), Northern Electric Co (6 MW), Power 
Generation System (116 MW), Uch Power Project (586 MW), Davis 
Energy Ltd (10 MW), Roush Pakistan Power Ltd (412 MW), and Altern 
Energy (14 MW).
In fact, the fresh power generation capacity for the ensuing year 
is estimated at 1418.3 MW. The actual addition, however, would be 
1261.3 MW after the scheduled retirement of 157 MW i.e. Multan 
steam (130 MW) and Shahdara (27 MW).
Consequently, the total installed generating capacity would 
increase from 16,696 MW in 1997-98 to 17,957 MW by the end of June 
Businessmen `point of view' not accommodated: CTA
By Our Correspondent
ISLAMABAD, June 13: Council of Textile Associations (CTA) has said 
that the federal budget for 1998-99 appears to be non-conventional 
presentation of survey of the economy.
Convener of CTA, S.M.A. Rizvi, in a statement on Saturday, said: 
"Much of the points were hidden and will come out in the shape of 
SROs which will follow afterwards."

By reducing import duty on air-conditioners, etc the government has 
shown its inability to catch and punish smugglers, he said.
Strict measures should have been taken on Afghan Transit Trade as 
far as luxury items were concerned, instead of losing huge revenue 
by reducing import duties to discourage smuggling, he added.
It appears that the budget has been made in a hurry and the 
businessmen, particularly exporters, `point of view' has not been 
at all accommodated, he stated.
He said: "Under the circumstances we have no option but to join in 
chorus with Pakistan Muslim League that Income Tax surcharge and Mr 
Sartaj Aziz, Finance Minister, Zindabad."
"The short assessment of the budget is that it has a major thrust 
on agriculture, which is a good thing. Another good news is the 
removal of duty from computers and other sophisticated electronic 
software and hardware," he stated.
The CTA convener remarked that all emphasis of the government had 
been on revenue side, particularly Sales Tax, but they had exempted 
from ST the traders having turnover below the scope of the Sales 
Tax net.
On the Income Tax and Wealth Tax side, it was expected that 
measures would be taken to find out new assessees, but the 
government has increased Income Tax and Wealth Tax on the old 
assessees by levying 10 per cent surcharge, he added.
He said the logic of giving incentives to import large and luxury 
motor cars was against the austerity measures announced by the 
prime minister.
"Even the owners of large and luxury cars should have been 
restricted for one year not to use them in order to save the petrol 
import bill. The prime minister wants the public to cut down one 
cup of tea to save foreign exchange. On the other side high value 
cars consuming billion of rupees POL are being encouraged. The 
contradiction in the society should be immediately removed," he 
The CTA convener regretted that there were no incentives for 
exporters which under the circumstances were expected definitely. 
"At this critical time, we had high hope that the exporters who 
were exporting 100 per cent to 80 per cent of their production 
would be exempted from Sales Tax," he added.
"Secondly, on the duty drawback side, we had a belief that the 
government would take some dynamic measures like our neighbours, I 
mean the Indian government," he stated.
Freezing of FCY accounts was a clear indication that the government 
has realized the importance of foreign exchange, he added.
The easiest way to earn more foreign exchange was to boost exports 
which are again showing a declining trend, particularly the textile 
sector which accounts for 65 per cent of our total exports, he 
KARACHI: Mohammad Hussain Dadabhoy, Chairman Nooriabad Association 
of Trade and Industry has appreciated the budgetary policies 
announced on Friday and expressed the hope that it would stimulate 
activity in industry and accelerate pace of growth in agriculture.
Dadabhoy, founder Chairman of All Pakistan Cement Manufacturers 
Association also said that measures announced in the budget should 

lay the foundation of a self-reliant economic structure and enable 
Pakistan to counter the sanctions being imposed.
The President of Sindh Chamber of Agriculture Syed Qamaruzzaman 
Shah also hailed the budgetary measures of increasing credit for 
farmers and reduction in prices of tractors and other implements.
Talking over telephone from Hyderabad he expressed his strong 
disapproval of government's intention of going ahead with 
construction of Kalabagh Dam.

Pressure on rupee resources of banks
Mohiuddin Aazim
KARACHI, June 19: The State Bank would not let the short term money 
market dry up. It would ensure that conversion of foreign currency 
accounts into rupee accounts does not put a pressure on the rupee 
resources of the banks.
The assurance was lent to senior bankers by SBP Governor Dr 
Muhammad Yaqub on Friday. Sources close to the meeting between SBP 
chief and heads of local and foreign banks said the governor asked 
the bankers to keep rolling over their foreign currency swap funds.
"We were told that the SBP would help the banks maintain a certain 
level of liquidity to cope with the present situation," said a 
participant of the meeting who declined to be named.
Rupee resources of banks are shrinking as people are taking out 
money from their foreign currency accounts in rupees-at a special 
exchange rate of Rs 46 to a dollar. That is what they can do at the 
moment because they are not allowed to withdraw money in foreign 
currencies from their foreign currency accounts.
Exact figures for such outflows are not available but bankers 
estimate a 5-6 per cent decline in the total $11 billion worth of 
foreign currency deposits since May 29 when these accounts were 
suspended. The suspension of foreign currency accounts came as a 
part of overall emergency imposed in the country after Pakistan 
went nuclear on May 28.
A Societe Generale Securities research report estimates that "total 
deposits could fall as much as 10 per cent" due to conversion of 
FCY accounts into rupee accounts.
Sources close to the SBP meeting said Governor Yaqub told the 
bankers the SBP would not let the short term money market dry up 
though he did not reveal the specifics of any contingency plan.
Senior bankers say the situation is tricky. "If the State Bank cuts 
its discount and repo rates to pump in surplus liquidity it will 
reduce overall interest rates and make bank loans cheaper," said 
treasury manager of a foreign bank. "But then the banks will give 
lesser returns to their depositors and will not be able to mobilise 
enough deposits to make up for a huge outflow from their accounts."
A fall in overall interest rates would also fail the banks in 
raising fresh foreign currency swap funds and rolling over their 
existing stocks. Senior bankers say they cannot help outflows from 
around $600 million worth of swap funds currently retained in 

"The governor asked us to maximize rolling over of foreign currency 
swap funds," said another participant of the meeting who also 
declined to be identified. But bankers say retaining these funds 
under present circumstances is very difficult.
The post-blasts downgrading of Pakistan's foreign currency debt and 
bank deposit ratings by Moody's and Standard & Poor's has made it 
more than difficult to attract foreign currency swap funds in 
The State Bank has recently lowered the limit for raising such 
funds from five million dollars to a half a million dollars but 
that too is not working.
On the other hand, the raiding teams of Pakistan Telecommunications 
Corporation (PTCL), Small Business Finance Corporation (SBFC), Sui 
Northern Gas Pipelines Limited (SNGPL), income tax, WAPDA and other 
departments were conducting raids on their own and a lot of 
defaulters were detained during the said campaign.

Reduction in customs duties to help poor: Sartaj
Bureau Report
ISLAMABAD, June 13: Finance Minister Senator Sartaj Aziz said on 
Saturday that the reduction in the rate of customs duties by about 
10 to 45 per cent on a number of daily use items would offer great 
respite to the general public from high cost of living.
"We have not created problems for the common-man and avoided 
levying unbearable taxes as was witnessed during the three years of 
the PPP government," he said.
Speaking at a news conference here on Saturday, he pointed out that 
the government had not only avoided new taxes but also re-adjusted 
and lowered various customs duties to help the middle and poorer 
sections of the society.
"We have very seriously tried to address the issue of smuggling 
with a view to save our local industry and at the same time ensure 
low prices of daily use consumer items", he said.
He said the budget for 1998-99 proposed to reduce customs duty on a 
number of smuggling prone items including cheese (from 45 per cent 
to 25 per cent), betel-nuts (from Rs. 22 per kg to 35 per cent), 
coffee (45 per cent to 35 per cent), spices (35 per cent to 15 per 
cent), toiletries (45 per cent to 25 per cent), printing ink (45 
per cent to 35 per cent), photographic films (25 per cent to 15 per 
cent), crockery (45 per cent to 35 per cent), blankets (45 per cent 
to 25 per cent), footwear (45 per cent to 35 per cent), TVs, air-
conditioners and refrigerators (45 per cent to 25 per cent), toys 
(45 per cent to 25-35 per cent), stationery (35 per cent-45 per 
cent to 25 per cent), auto-parts not manufactured locally 45 per 
cent to 10 per cent) and other electro-mechanical household 
appliances (45 per cent to 25 per cent).
With the reduction in customs duty the prices of computers, CD 
roms, palm oil, disposable syringes, medical instruments, automated 
cash registers, luxury cars, tractors, vehicles for war disabled 
persons, ships, aircraft, electro-mechanical household appliances, 

raw material, components, sub-components used by the local 
manufacturing industry will also go down.
A duty differential of about 10 per cent between bulk and retail 
import of selected consumer goods e.g. milk, butter, cheese, honey, 
tea, coffee, spices, juices, miscellaneous food items, shampoo and 
washing preparations will cut prices of these imported items.
Affluent persons who use beyond a limit their telephones will have 
to pay withholding tax in the range of Rs. 50 to Rs. 300. Mobile 
phones user will pay a maximum of Rs. 400 withholding tax on bills 
exceeding Rs. 5000. Advance tax payable by owners of cars of 1600cc 
to 1900cc has been fixed at Rs. 2000 while advance tax on vehicles 
with capacity of 2000cc is fixed at Rs. 3000.

Back to the top.
The K-bomb
Irfan Husain
NOW that we have an A-bomb in our arsenal, the concept of shooting 
ourselves in the foot has come to take on a whole new meaning.
Take the current explosion of outrage in three of Pakistan's four 
provinces over the proposed Kalabagh Dam as an example. Here was 
Nawaz Sharif, basking in the post-nuclear glow of populist 
adulation, seemingly unshakeable for the foreseeable future. With 
the successful testing of the bomb behind him, no same person could 
have predicted that within a matter of weeks, he would be surveying 
scenes of popular hostility, and rebellion within the Muslim League 
fold in Quetta, Peshawar and Karachi.
But in less time than it takes to say "Kalabagh", the PM has blown 
it big time. By announcing the decision to go ahead with this 
controversial project without a national consensus behind him, he 
has ensured that the admiration and support he had garnered by 
pressing the nuclear trigger would melt away faster than the snow 
in Murree on a hot summer day.
Now don't get me wrong: I happen to believe that a large hydro-
electricity and irrigation project of the magnitude of the proposed 
dam is necessary for Pakistan's long-term prosperity. Both Mangla 
and Tarbela will come to the end of their economic life in the 
early part of the next century, and we need to supplement the power 
they generate and the water they provide to thousands of farms.
While the pressing economic justification of the project is well 
established, it is nevertheless difficult to forget Wali Khan's 
threat to climb on the dam and dynamite it if the government went 
ahead and built it. These words were uttered nearly a decade ago. 
Indeed, plans for the dam have been gathering dust in WAPDA for 
decades. Tens of millions of dollars have been spent on technical, 
economic, environmental and social feasibility studies.
I remember meeting Mrs Robin Raphel, widow of the US ambassador who 
perished in the air crash with Gen Zia, in early 1988. She simply 
couldn't understand why the government was dragging its feet on a 
project for which there was so much international financial support 
available. Although this was during Zia's days, I told her that 
even his dictatorial government was only interested in hanging on 
to power, and would not do anything, no matter how badly it was 
required for the country's long-term health, if it meant making 
Successive governments since then have adopted a similar approach 
towards the project: they have paid lip-service to its importance, 
but ducked for cover as soon as the flak started flying. And along 
with our own diminishing support for the dam, international 
agencies have lost their earlier enthusiasm. Now, in the post-bomb 
scenario, there are no grants or soft loans available for this 
economically viable project. Indeed, it may be one of the 
casualties of our "historic" nuclear tests, but out of the blue, 
Nawaz Sharif has decided to resurrect its corpse and breathe new 
life into it.
Unfortunately, resurrection seldom comes cheap: in the case of 
Kalabagh, it will cost 7.6 billion dollars. And this is the old 
estimate. We would be lucky to complete it for anything less than 
10 billion dollars, 30% of which will be in foreign exchange. At 
the current (and constantly worsening) rate of exchange, the rupee 
cost will be nearly 500 billion rupees.
When asked how the government proposed to finance this project, the 
minister for fuel and power stated that the foreign exchange 
component would be raised on the international bond market. 
Clearly, those in charge of our destiny either see things lesser 
mortals can't, or are indulging in serious substance abuse. Any 
fund manager in London, Tokyo or New York who suggests that his 
company buy into any Pakistani infrastructure project, especially a 
long-gestation one, will either be thrown out or committed to an 
asylum, or both.
Our leaders are so cut off from reality that they simply don't 
comprehend the implications of two recent decisions. One of them 
was to test our nuclear devices, and the other one was to hassle 
and humiliate foreign investors who had invested in private power 
projects in the last few years. In the latter case, I am sure there 
were kickbacks involved, but the point is that when you renege on 
solemn assurances and contracts, you send a signal to the world of 
high finance that your country is unsafe for foreign investments.
And then when you compound this impression by inviting crippling 
economic sanctions, you can say goodbye to any possibility of 
investment from abroad. If there was any lingering hope in the 
breast of optimists that we could still find a few suckers out 
there, we have effectively put paid to them by placing heavy and 
ham-handed restrictions on the free movement of foreign exchange.  
Those Pakistanis who fondly believe that the oil-rich Arab world 
will come rushing to our help would do well to reflect on the fact 
that for the last three years, oil prices have been severely 
depressed, causing many Middle East governments to cut back on many 
projects. To imagine that they will resist American pressure to 
assist us under these circumstances is to live in a fool's 
paradise. But perhaps this is exactly where we have been living for 
many years.
Against this backdrop, for somebody in a responsible position to 
suggest that we can and should take on a 10-billion-dollar project 
implies a certain lack of understanding of how the world functions. 
So why did Nawaz Sharif suddenly spring this on an unsuspecting 
nation? After all, one lot of nuclear explosions was enough. I 
suspect that he thought he could cash in on his sudden popularity 
and push the unpopular dam through. Welcome to the real world. 
Years of resentment against a project perceived as being good only 
for Punjab has exploded with a force equalling the blasts in 
Right or wrong, Kalabagh Dam is seen as a dark plot hatched by 
Punjab to grab more water from the river system for its development 
at the expense of the other provinces. This is the classic zero-sum 
game where the gains for one side equal the loss to the other. 
Never mind that millions of acres of arid land will be irrigated: 
the point is that most of them are in Punjab. Instead of preparing 
the ground through a public education programme, Nawaz Sharif has 
frittered away much of the support and goodwill he had won.
This underlines a lesson every politician should repeat every hour 
of his waking life: popularity is a fleeting thing. And in Nawaz 
Sharif's case, the lesson is that A-bombs provide a poor foundation 
for Kalabagh Dam.

Sultans and sycophants                   
By Ardeshir Cowasjee
HISTORY neither forgets nor forgives those rulers who desecrate 
places of worship, who destroy seats of learning, who burn 
libraries and books, who breach the faith and trust of those over 
whom they rule.
In the year 997 AD the young Turkish chieftain Yamin Al-Daula Abu'l 
Qasim Mahmud Ibn Sebuktigin proclaimed himself Sultan of Ghazni. 
This new-found sultanate was poor; India, the country over the 
border was old, its heritage and its people were rich. In 1001, 
having fortified his raiding force, Mahmud crossed the border on 
the first of his 17 invasions. Thereafter, each winter he descended 
upon India, raiding and rampaging, filling his treasure chests with 
spoils to carry home, affording his army pleasure and amusement by 
giving them full freedom to plunder and pillage.
He is remembered for his admiration of the architecture and 
grandeur of the temple at Mathura on the Jamna. Historian Will 
Durant writes: " .....having judged that its duplication would cost 
100 million dinars and the labour of 200 years [he] ordered it to 
be soaked with naphtha and burnt to the ground." Six years later, 
in 1026, on his final rampage, he went as far as Patan in Gujerat, 
annihilated 50,000 of its inhabitants and destroyed the ancient 
Somnath temple. Down the centuries, these acts of destruction and 
desecration have been remembered with disgust and loathing, as will 
be remembered the recent fanatical wanton destruction of the Babri 
Masjid at Ayodhya.
Mahmud reigned for a third of a century and when he died, full of 
years and honours, Muslim historians ranked him as the greatest 
monarch of his time and one of the greatest sovereigns of any age.
There is a famous legend told of Mahmud of Ghazni and Ab'ul Qasim 
Mansur Firdausi of Tus, the Persian poet of the conquered land of 
Khorasan. Envious of what Firdousi had written about the great 
Achemenian and Sassanian emperors in his Epic of the Kings, the 
`Shah-nameh', conqueror Mahmud asked him to compose an epic poem on 
his conquests and his ancestors. But that will fill but a pamphlet, 
said the poet.  Mahmud persisted, tempting the fun-loving 
spendthrift. For each verse you write in my praise I will pay you 
one gold dinar, he offered. That will be easy, said Firdausi, send 
me a few of your seasoned sycophants and I will weave the verses 
round the praises they sing of you and your triumphs.
The proficient sycophants delivered, and in no time 1,100 verses 
were written and submitted. As rich as he was, the Sultan decided 
to renege on his promise, and sent to Firdausi 1,100 silver dinars. 
The poet was in his bath when Mahmud's emissary rode in with the 
money. With contempt he accepted the `base metal' and with contempt 
immediately distributed it. To his maid who poured his bath water 
he gave 200 coins, 200 to the woman who scrubbed his back, 200 to 
the woman who held his towel, and 200 to his woman who heated his 
water. To the king's messenger he threw 200 coins and 300 to the 
three men who had ridden with him. He fed them, entertained them, 
and sent them back to their master to relate what they had seen.
The scorned Firdausi then set to work with a vengeance, writing 
verse after verse depicting the rapacity of the real Mahmud and the 
atrocities committed by his armies. The poet's credibility dented 
the Sultan's proclaimed reputation and he relented. Once again the 
king's men were dispatched to Tus, this time with the promised 
1,100 gold dinars. But they were too late. As they rode in through 
one gate of Tus, Firdausi's body was being carried out through 
another. He was survived by his daughter who refused to accept the 
money of a reneger.
But there have been good rulers and great emperors. Abu-ul- fath 
Jalal-ud-din Muhammad Akbar for one, the finest of the Mughals, the 
most enlightened, the most tolerant, the most just, a person who 
respected all beliefs and religions. He believed that bigotry was 
blind and savage, that man has no right to demand that his 
neighbour shall address God after his pattern, that he should be 
allowed to pray and worship in his own way. He believed that one 
man had no right to impose his own way of thinking upon others. He 
could never have conceived that one day it would be considered a 
crime, that one day a man could be jailed for intoning the time-
honoured phrase, Bismillahir Rahmanir Rahim, or for greeting 
another with a Salaam Aleikum.
At Akbar's darbars, seats were assigned to those of different 
faiths - Christians, Brahmins, Jains, Buddhists, Shintos, 
Zarathustis. The representative of the latter faith was the high 
priest, Dastur Meherji Rana.
As the tale is told, at three consecutive darbars, Akbar noticed 
that Meherji Rana's chair remained unoccupied. Worried that he, the 
emperor, could have somehow hurt the scholar's feelings, he sent 
word requesting his presence at a private audience. Rana assured 
Akbar that he was not at all at fault, that it was he, Rana, who 
had tired of the sycophancy, the bowing and scraping exhibited by 
the courtiers at the darbars of the emperor. Appreciating his point 
of view, Akbar confided that he too had tired of it all but was 
unable to rid himself of the tufthunters that surrounded him.
Curious, the emperor then inquired how it was that Rana had never 
asked for anything, as had all the others, for land, properties, 
horses, arms, money. I want nothing material, responded Rana. My 
one request is that you occasionally call me aside in full view of 
your assembled darbar and whisper a few sweet nothings in my ear. 
This will convey to your satraps that I enjoy your confidence, and 
I will be left in peace. Done, said the King. Not only did he 
oblige the priest, but rewarded him with 200 acres of fertile crown 
property at Ghelkhadi, close to Navsari.
Now, at the close of the 20th century, we have our man, our 
present-day Sultan, who insists upon building motorways as he 
wishes to be remembered as a latter-day Sher Shah Suri, builder of 
the Grand Trunk Road. When asked why he had to plan and lay the 
foundations of a grotesque domed and turreted secretariat for 
himself at an unaffordable cost, his answer was that Emperor 
Shahjehan had not worried about deficit financing when he built the 
Taj Mahal for which he is famed.
Our prime minister is perhaps oblivious of the ultimate fate of the 
creator of the Taj Mahal. Shahjehan, that most unfortunate of 
rulers, was imprisoned by his own son, Aurangzeb. After almost 
eight years of incarceration, the emperor died in his lonely prison 
from where he had looked out through his barred window upon the 
beautiful tomb.
A glossy expensive-looking card, imprinted with the prime 
minister's smiling visage and a laudatory bio-data singing his 
praises, has been printed and distributed at our expense. Several 
paragraphs bear an asterisk to highlight them. The first of these 
"*Nawaz Sharif is one leader who has the confidence and trust of 
the Pakistani middle-classes, the traders and the business 
community to revive the economy and restore the nation's lost 
confidence in the country's future."
Nawaz Sharif has betrayed the trust of the people, and usurped 
their `amanat'. He confiscated the $12 billion deposited by them, 
at his urging, in his treasury. He had no right to appropriate 
their dollars without safeguarding their return, plus the interest 
That he will return to them pieces of paper of lesser value 
magnifies the theft. That, we cannot sue him and his government, 
having been deprived by them of our fundamental rights, does not 
absolve them.
And why was banking secrecy breached? After the freeze, the State 
Bank could have asked the banks to notify their foreign exchange 
balances, with the names of the account holders codified. Why was 
order No II enforced (ordering the notification of names and 
The finance minister declared in Parliament that $200 million had 
been withdrawn by certain individuals after the freeze was 
notified. ("$ 200 million withdrawn from foreign accounts, admits 
Sartaj." Dawn, June 7). Has the government asked the persons 
concerned to redeposit $200 million along with a penalty of, say, 
an additional $200 million, or is the ruling party protecting its 
It will take years of hard work to rise again from the ashes. It is 
possible. But it is not possible if we are led by amoral people 
devoid of integrity and credibility.

A portentous scenario: Karachi diary
Rifaat Hamid Ghani
PROVIDENCE was kind enough to spare us the natural disaster of a 
cyclone or tidal wave. Providence perhaps knows that we have a 
propensity for man-made disaster. The national agenda as enunciated 
by the prime minister culminated in the announcement that the 
Kalabagh Dam was to be constructed.
Having advised the proclamation of an Emergency,he now seems bent 
on providing grounds for it.
To the simplest minds in the simplest terms it makes weird sense 
for the government to press ahead with the scheme when three out of 
four provinces are opposed to it. Those who favour the dam and are 
intent on building it seem impervious to the need for the project 
to have a national consensus behind it.
Mr Sharif may think he has everything neatly in hand to implement 
the project while using the forms of democratic consent and 
procedure to contradict the spirit. After all, he had a dazzling 
success in a judicial context last December. He forced an 
inconvenient president out of office and got rid of an equally 
irksome chief justice. It is not surprising if three victories in a 
row, the third being the Bomb, have left him confident that the 
Kalabagh honours will also be his. But the portents are bleak.
The Balochistan chief minister is already in the midst of a battle 
of survival. If a more complaisant provincial arrangement is not 
obtained in Quetta, there is more than a pretext for governor's 
rule. Sindh has a serious law and order problem and political 
polarization is intense, making the future of the coalition set-up 
look uncertain. As for Sarhad, Kalabagh never seemed as bad from 
Hazara, for instance, as it did from Charsadda. If the opposition 
is rather stronger outside the house than inside it, the tenuous 
majority propping up Sardar Mehtab's government can perhaps be 
persuaded into greater self-confidence.

Pakistan's squash image under a shadow

Majid Khan
After dominating the world squash for well over 16 years, thanks to 
the squash maestros Jahangir Khan and Jansher Khan, Pakistan seems 
to have virtually lost its image as a leading nation in the 
international arena with neither the world team championship nor 
the world open title in its grasp.
In the juniors (under-19) world team and individual championship we 
have no strong base to show much promise. Our image even at the 
Asian level had been threatened for the past five years. We had 
lost the Asian individual title in 1992 to Hong Kong's Abdul Fahim 
in Peshawar in the last championship, held in Amman, (Jordan). 
Fahim again reached the final to be beaten by Mir Zaman Gul, who 
emerged as Asian Champion. But in the team event Pakistan had 
retained the title since the championship began in 1981.
Pakistan as such faces a tough challenge at every level. This has 
been further accentuated after the major surgery to which Jansher 
Khan, the only surviving titan from this land, has recently been 
exposed. Although his operation has been termed a success by the 
Lahore based surgeon and Jansher too, in his various press 
statements, has confidently stated that he would stage a comeback 
as a totally fit man, his real test would be the super series 
scheduled in Hong Kong from August 24-30.
Since there is no major championship before the Hong Kong Open, 
Jansher Khan who has already started light exercises as advised by 
his doctor, would be having enough time for his recovery.
The nation is looking forward with great hope that Jansher Khan 
would return to world circuit in August to re-establish his 
authority as the leading players of international squash. However, 
even after Jansher Khan's full recovery, Pakistan's squash future 
remains in doldrums.
For rebuilding Pakistan's image as a world squash power it will 
have to fully utilise the services of Jahangir Khan who has offered 
the same to the Pakistan Squash Federation to contribute his share 
in grooming the players of the future. It is a great opportunity 
for the PSF that should not be missed.
ICC body to probe betting, match-fixing
KARACHI, June 16: Betting and match-fixing issue was discussed at 
the International Cricket Council (ICC) meeting in England last 
week, a spokesman for the Pakistan Cricket Board (PCB) said.
Without revealing the details of the discussion, the spokesman said 
a newly drafted proposal was circulated among the participants for 
"Since it was the first paper of its nature, the members requested 
to put off the discussion till next ICC meeting," he said. ICC 
meets again in September. The venue will be announced later.
According to the proposal, match-fixing and betting will be 
investigated by the game's governing body.
"A panel will be formed comprising former Test stalwarts and even 
some members of the ICC," the spokesman stated, adding: "Basically, 

the aim is to curb the growing allegations of betting and match-
The PCB official said unlike the 1994-95 incident in which the 
Australian trio accused a Pakistan cricketer and Pakistan conducted 
investigations, the matter will be reported to the ICC committee 
who will probe the issue through its own resources.
However, the spokesman stated it was difficult to prove betting and 
match-fixing. "How can you convict an individual? How will you 
gather evidence? These are some of the issues that will be 
discussed in the next ICC meeting."
The chairman of the Pakistan Cricket Board (PCB), Khalid Mahmood, 
meanwhile said from Lahore that Pakistan has proposed the Asian 
Cricket Council (ACC) to organise an Asian Test Championship like 
the Asia Cup one-day tournament.
Mahmood said a three-member committee has been formed to draft the 
format of the tournament. Asif Iqbal (CBFS), Ehsan Mani (Pakistan) 
and Raj Singh (India) are the members of the committee. They have 
been instructed to submit the blue-prints within two months.
"Test World Championship appears difficult at present. But we can 
have our regional tournament. The championship will be held under 
the auspices of the ACC and the ICC will have nothing to do with 
it," Mahmood said.
Mahmood said the initial suggestion was to hold the tournament on 
neutral territory. "Sharjah and Dhaka are the two grounds where the 
championship can be staged."
The PCB chairman stated emphasis was laid on the Under-19 level and 
there was a suggestion of holding World Cup after every two years.
Mahmood said the West Indies, in the ICC meeting, offered to hold 
the 2007 World Cup. "They have been instructed to submit the 
feasibility report."
The 2003 World Cup has already been allocated to South Africa by 
the ICC.
Mahmood stated that during the London conference, he also met his 
Indian counterparts. He stated that Pakistan's tour of India early 
next year was on as far as the two boards were concerned. He 
further said he has received no reservations from the Australians 
regarding their forthcoming tour of Pakistan.
Mahmood said the ICC were seriously considering to increase the 
penalty for illegal deliveries. He said the ICC might penalise the 
team with two runs for each no-ball plus the number of runs scored 
off that delivery. Similarly, a wide ball might cost two runs in 
the new regulations likely to be enforced soon.

Back to the top.

Dawn page