-------------------------------------------------------------------
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
letters@dawn.com
Make sure you include your full name, complete address and, if in
Pakistan, your daytime telephone number.
TO START RECEIVING DWS FREE EVERY WEEK, JUST SEND US YOUR E-MAIL
ADDRESS!
(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
********************************************************************
*****DAWN - the Internet Edition ** DAWN - the Internet Edition*****
********************************************************************
Read DAWN - the Internet Edition on the WWW !
http://dawn.com
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CED on freezers, refrigerators withdrawn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
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
===================================================================
NATIONAL NEWS
980615
-------------------------------------------------------------------
Provinces to be convinced on dam issue: PM
-------------------------------------------------------------------
Correspondent
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
session.
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
ahead.
"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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980614
-------------------------------------------------------------------
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
1998-99.
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
dreaded.
The Faisalabad Chamber of Commerce and Industry (FCCI) termed the
federal budget as a balanced one which would promote trade and
industry.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980619
-------------------------------------------------------------------
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
people.
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
commodities.
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
commodities.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980620
-------------------------------------------------------------------
Karachi-Lahore route: PR plans to run 10 AC trains
-------------------------------------------------------------------
Correspondent
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
said.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980620
-------------------------------------------------------------------
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980618
-------------------------------------------------------------------
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
Assembly."
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980617
-------------------------------------------------------------------
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
future.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980620
-------------------------------------------------------------------
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
billion.
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
argues.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980619
-------------------------------------------------------------------
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)
respectively.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980614
-------------------------------------------------------------------
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
Saturday.
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
year.
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
double.
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
improved."
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.
===================================================================
BUSINESS & ECONOMY
980614
-------------------------------------------------------------------
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
entertainment.
Through another notification No 581 (I)/98, dated June 12, 1998,
the CBR has rescinded the fixed amount of Sales Tax on processed
fabrics.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980620
-------------------------------------------------------------------
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".
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980620
-------------------------------------------------------------------
Warrants against 1,700 defaulters
-------------------------------------------------------------------
Correspondent
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980619
-------------------------------------------------------------------
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
telephone.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980619
-------------------------------------------------------------------
Land tax under consideration: Sindh budget
-------------------------------------------------------------------
Reporter
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
billion.
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
minister.
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
million.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980617
-------------------------------------------------------------------
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
tariffs.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980617
-------------------------------------------------------------------
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
hurt."
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
semiconductors.
"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
500."
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980617
-------------------------------------------------------------------
Increase of 1261.3mw energy envisaged
-------------------------------------------------------------------
Correspondent
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
1999.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980614
-------------------------------------------------------------------
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
stated.
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
stated.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980620
-------------------------------------------------------------------
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
Pakistan.
"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
Pakistan.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980614
-------------------------------------------------------------------
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.
===================================================================
EDITORIALS & FEATURES
980620
-------------------------------------------------------------------
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
waves.
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
Balochistan.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980614
-------------------------------------------------------------------
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
reads:
"*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
earned.
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
addresses)?
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
own?
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980618
-------------------------------------------------------------------
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.
===================================================================
SPORTS
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
980617
-------------------------------------------------------------------
ICC body to probe betting, match-fixing
-------------------------------------------------------------------
Reporter
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
deliberations.
"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-
fixing."
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