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DAWN WIRE SERVICE
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Week Ending : 21 February 1998 Issue : 04/08
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C O N T E N T S
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N A T I O N A L N E W S
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Pakistan opposes attack on Iraq
Education policy again deferred
Benazir to file two more references against Nawaz
Leghari plans to launch political party
Decision on 23rd to defer or retain retail GST
Sindh getting 20pc less water from Punjab, PA told
SC converts 'chargesheet' against PM into notice
Kabul told of cut in transit trade list
Reconstitution of PTV, PBC boards of directors urged
Relief for 1981-95 ad hoc appointees
Proposal to raid Bara markets turned down
---------------------------------
B U S I N E S S & E C O N O M Y
---------------------------------
Private forex deposits within safe limit
Second major gas discovery in Sindh
IMF asks govt to cut spendings
NA body for review of NBP privatization decision
Participation of local engg industry mandatory
US firm gets patent to market Basmati
PTCL's after tax profit boosts stocks
IMF insists on urgent hike in power rates
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E D I T O R I A L S & F E A T U R E S
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Credibility: zero minus Ardeshir Cowasjee
Nice work if you can get it... Irfan Hussain
Promise and performance Shaikh ManzoorAhmad
Bilateralism is not the option Mushtaq Ahmad
Unlikely comradeship M.H. Askari
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S P O R T S
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Saleh meet Farhan in Asian snooker final
Rain-hit Johannesburg Test ends in draw
Rain-marred Pindi 'Test' ends in draw
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N A T I O N A L N E W S
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980220
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Pakistan opposes attack on Iraq
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Hasan Akhtar
ISLAMABAD, Feb 19: Pakistan on Thursday voiced its opposition to a
possible US-led military strike against Iraq and stressed on
diplomatic initiative to resolve the crisis.
Briefing reporters at a news briefing, a Foreign Office spokesman
said Pakistan wanted full implementation of all UN resolutions
without selectivity.
"We are very concerned about the suffering of Iraqi people," the
spokesman said adding diplomatic efforts should be geared up to end
the row.
The spokesman said Pakistan had made contingency plans for the
safety of its diplomatic staff in Iraq in the event of a military
strike.
He said that the Chinese leaders, in talks with Mr Sharif, had
firmly opposed a military strike on Baghdad and demanded that the
problem should be resolved diplomatically. The spokesman said
Pakistan's position on the Iraq issue was similar to that of China.
Referring to Kashmir issue, the spokesman said the Chinese support
to Pakistan's principled stand on the Kashmir issue had been
consistent. The Chinese leadership reaffirmed the stand during Prime
Minister Nawaz Sharif's recent visit to Beijing, which the Foreign
Office described as "very significant" and "a landmark" in Sino-
Pakistan relations.
He said the Chinese agreement with Pakistan to stay as strong
partners while entering the 21st century, was the highlight of Mr
Sharif's meetings with Chinese President Jiang Zemin and Prime
Minister Li Peng.
When reminded that the Chinese president (in 1996) had advised
Pakistan to put the contentious issue, not amenable to settlement in
the foreseeable future, which was generally taken to mean the
Kashmir issue, on "back burner" for the present, the spokesman said
the Chinese obviously implied that the issue be taken up by opening
a dialogue on it, and that was what Pakistan did earlier last year
by initiating talks between the foreign secretaries of India and
Pakistan.
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980219
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Education policy again deferred
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Bureau Report
ISLAMABAD, Feb 18: The federal cabinet on Wednesday once again
deferred approval of the new education policy in order to seek
opinion from educationists and other experts.
The prime minister directed authorities concerned to present the new
education policy for a public debate on Feb 21 at the Convention
Centre.
He said he would himself listen to recommendations for possible
incorporation in the new policy. It would be formally launched on
March 27 to coincide with the death centenary of Sir Syed Ahmad
Khan.
The education minister presented the draft education policy in the
light of recommendations made by a cabinet sub-committee.
The cabinet was informed that the policy aimed at improving the
quality of education, increasing the literacy level and
universalization of basic education.
Private sector participation will also be encouraged to cater for
the increasing needs of a burgeoning population.
It has also been proposed that industrialists and agriculturists
should be encouraged to set up educational institutions at their
factories and farms to cater for the needs of workers' children.
Recommendations were made in the draft to make the examination
system credible.
The cabinet was informed that the draft policy had been extensively
discussed with provincial governments, federal agencies,
universities, chambers of commerce and industry, the chairman of the
National Assembly and Senate standing committees on education,
eminent educationists, journalists and intellectuals.
CHINA VISIT: Foreign Minister Gohar Ayub briefed the cabinet on the
recent visit of Prime Minister Nawaz Sharif to China. He said there
was a unanimity of views between the two countries on issues of
mutual interest. The prime minister also briefed Chinese leaders on
the Kashmir dispute.
The Chinese leaders stressed the need for solution of the Kashmir
issue in accordance with UN resolutions. They also appreciated
Pakistan's efforts for promoting the Kashmir cause and supported its
stand, Mr Gohar Ayub said.
The cabinet was told that the investment conferences in China and
Hong Kong were successful and generated a lot of interest among
Chinese investors to invest in Pakistan, the foreign minister said.
PRIVATIZATION: The ministry of petroleum and natural resources
presented a report on privatization of different organizations of
the ministry to improve management efficiency and quality of
service.
The cabinet was informed that the ministry had been able to contain
the gas losses of Sui Northern Gas Pipelines and of Sui Southern Gas
Company during the year.
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980217
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Benazir to file two more references against Nawaz
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Staff Reporter
LAHORE, Feb 16: Ms Benazir Bhutto's counsel Babar Awan said here on
Monday that he was going to file two disqualification references
against Prime Minister Nawaz Sharif during the current week on the
charge of making 60 appointments against various posts in violation
of the provisions of the constitution dealing with the service of
Pakistan.
He told a news conference at a local hotel that one reference would
be filed with the National Assembly speaker under the People's
Representation Act, which will also be submitted to the chief
election commissioner. The other reference would be filed with the
chief ehtesab commissioner.
As many as 11 references have already been filed against the prime
minister on various charges and another eight are being processed,
Mr Awan said. He said it was a great achievement that unlike the
government's references against the PPP chairperson, not a single
reference had so far been declared unfit for further proceedings.
Three government references against Ms Bhutto were recently returned
by the CEC on the plea that he could not take any action on them
under any law.
Mr Awan alleged that the prime minister had ordered appointment of
'unskilled' colleagues or people who had already reached the age of
retirement against some very high positions. As a result, the basic
structure of the service of Pakistan stood destroyed. He alleged
that salaries and benefits given to the new appointees had no
parallel in any Asian country. He said he was ready to hold a debate
on the point with the federal law minister.
Mr Awan said the new CBR Chairman, Mr Moeenuddin Khan, had been
appointed at a monthly salary of Rs 1.6 million. Mr Khan, he pointed
out, had already been given three years' salary in advance. The
protocol provided to him was higher than that of a provincial
governor, and the benefits given to him were more than permissible
for the highest bureaucrat.
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980218
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Leghari plans to launch political party
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Staff Reporter
KARACHI, Feb 17: Former president Farooq Leghari, speaking at a
seminar on 'Pakistan at the cross-roads' organized by the Southasia
Forum in a local hotel on Tuesday, announced that he was working
toward forming a new political party .
Replying to a question, he said: "Yes! I think it is important to
have a new political party to fill in the vacuum and save Pakistan
from down-slide. I'll
work hard to form this party."
What initially appeared to be a stock-taking of Pakistan's
performance during the last 50 years and the options available to it
at the cross-roads of history, actually turned out to be a kick-off
speech for Mr Leghari's party in the offing.
As the day marked the completion of one year of the PML government,
Mr Leghari while enumerating the present government's failures said:
"The system is fast sinking under the weight of the so-called
mandated system." Referring to the prevailing conditions in the
country, he said: "We have the structures of democracy without
having the spirit of democracy, we have the largest irrigation
system with the lowest agricultural yield, we have developed the
nuclear capability but have a very weak education base."
Deriding the PML government, Mr Leghari said nobody including
himself had expected the kind of mandate the PML received in the
general election of 1997. He said after receiving such an
overwhelming mandate, there were no impediments in the way of
delivering good governance.
The former president criticized Prime Minister Nawaz Sharif for
hungering for more power even after securing his position with the
passage of the 13th Amendment. Referring to the government plans for
radically amending the constitution, he said that before such a
move, the people of the country should be taken into confidence and
a public debate through the media should precede the amendments.
Continuing in the same vein, Mr Leghari said had the present rulers
been clear in their aims the present situation in Karachi in the
aftermath of a kidnapping of a girl and the PML-ANP tussle over
renaming the NWFP would not have arisen.
"The government is only interested in promoting the interests of a
family and friends of that family. Cronies and sycophants are being
rewarded," he said.
On the economic front, he criticized the excessive "dollarization"
of economy.
Referring to the present government's foreign policy, especially
vis-a-vis India, he said: "Much more is required than one Punjabi
prime minister thumping another Punjabi prime minister on the back."
Mr Leghari did not spare the Pakistan Peoples Party, whose
leadership was thoroughly lambasted in his speech. He flayed the PPP
for trying to divert the public attention from its wrongdoings and
corruption by threatening to launch street agitation. The PPP and
the PML, he said, were like a "mutual aid society". Both parties had
garnered only 37 per cent of the popular vote in the last elections,
he added.
After having built up a case against both the leading political
parties of the country, Mr Leghari said a third alternative force of
citizens, who are above parochial and other petty considerations was
the only panacea for the ills afflicting the country.
Replying to a question, he said the most immediate threat to
Pakistan was in the economic field. In this regard, he said,
Karachi, the hub of commercial activity had suffered a great deal.
"I think Karachi is still in trouble," he added.
Answering why after coming to power people assumed the permanent
leadership of their respective political parties which left no
opportunity for others to rise from the ranks, Mr Leghari said it
was exactly this kind of permanent party leadership which gave rise
to sycophancy resulting in not only damaging the party but hurting
the country as well. He said it was unfortunate that the two
successive prime ministers fell under the said category.
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980219
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Decision on 23rd to defer or retain retail GST
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Reporter
KARACHI, Feb 18: While the National Assembly Committee on Finance
says the traders are willing to pay the GST at retail level after
some improvements in the system, a section of the trading community
still rejects it in totality.
According to a press release of All Pakistan Organization of Small
Traders and Cottage Industries, an "all Pakistan convention for GST
rejection" will be held in Lahore on 20th (Friday), in which plans
to go for a strike on 26th will be finalized.
However, the Chairman Standing Committee on Finance, Economic
Affairs and Statistics, Sardar Mansoor Hayat Tamman said that the
decision whether to defer the 3 per cent GST at retail level or
maintain it, will be finalized in a meeting on 23rd in Islamabad
between the traders and the government.
"I think the GST at retail level will be implemented as trade groups
are willing to pay, provided its modalities and rules are
simplified," he later told during a press briefing. He said the
committee will deliberate on simplification of rules in Islamabad.
Meanwhile, in another move the Central Board of Revenue (CBR) has
shown its inability to accede to the request of Karachi Chamber of
Commerce and Industry (KCCI) regarding the extension of SRO 675(I)
97 up to June 1998 for clearance of goods. The KCCI had sent a
letter to the Finance Minister, Sartaj Aziz regarding abrupt
withdrawal of SRO of August 1997.
In a meeting at the KCCI, MNA Mian Abdul Manan attributed the move
as the worst example of the bureaucratic process, assuring the
traders that the standing committee will take up the issue with the
concerned authorities.
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980217
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Sindh getting 20pc less water from Punjab, PA told
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Staff Reporter
KARACHI, Feb 16: The Sindh is currently getting around 20 per cent
less water than it usually gets downstream on the Indus River
because the Taunsa Barrage in Punjab is damaged, the minister for
irrigation and power told the Sindh Assembly on Monday.
This is also perhaps the first time that the government has publicly
said that the Taunsa Barrage was damaged and that this was affecting
the supply of irrigation water to Sindh.
The minister, Ghulam Murtaza Jatoi, in response to an adjournment
motion by an opposition legislator demanding discussion on the
shortage of irrigation water in Sindh, said that Sindh, under an
agreement was to get 32,800 cusecs of water of water downstream on
the Indus River but was getting only 26,000 cusecs because the
Taunsa Barrage was damaged.
The adjournment motion of opposition MPA Abdus Sattar Bachani was
moved in his absence by PPP MPA Syed Nasir Hussain Shah who said
that the situation in Sindh for irrigation was so bad that there
wasn't even enough water for the wheat crop which had recently been
sown.
He said that t1,500 branches, minor branches and water courses had
dried up, and three canals had closed because there wasn't enough
water flowing downstream on the Indus.
The minister told the assembly that the Sindh government had
approached the federal government on this matter and that the water
would be available by February 22 from the Mangla reservoir via the
Chashma Link Canal. PPP legislator Jam Saifullah Dharejo stood up at
this point and said that according to a recent report the federal
government had slashed Sindh's allocation for the Tameer-i-Sindh
programme and was now holding back water which was vital for crop
irrigation. The MPA said that this all seemed to suggest that the
Punjab province was encroaching on the rights of the Sindh.
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980218
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SC converts 'chargesheet' against PM into notice
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Correspondent
ISLAMABAD, Feb 17: A supreme court bench headed by Chief Justice
Ajmal Mian agreed on Tuesday to treat as a mere "show cause notice"
a "chargesheet" issued to Prime Minister Mian Nawaz Sharif by a
bench headed by the former chief justice, Justice (retd) Sajjad Ali
Shah, for alleged contempt of court.
Mr S.M. Zafar, counsel for Prime Minister Nawaz Sharif, took 90
minutes to persuade the court that the chargesheet issued to the
prime minister was not a chargesheet as required under the law, and
the court was still at the stage of "show cause notice".
When the proceedings started on Tuesday, Chief Justice Ajmal Mian
observed that the previous bench had chargesheeted the prime
minister, and the only question for the court to decide was what
procedure to follow.
Mr S.M. Zafar contended that no charge sheet had been "issued", but
admitted that a chargesheet had been "drafted". He said unless a
chargesheet was read out to an accused asking him whether he pleaded
guilty or not guilty, there was no chargesheet.
He said under rule 7 of the 1976 Contempt of Court Act, the attorney
general had to act as a prosecutor, and it was his duty to read out
a charge to an accused. He said no such thing had happened in this
case, and the so-called chargesheet was handed down to
representatives of the respondents at the office of the deputy
registrar.
When the chief justice observed that a mere formality of reading out
a chargesheet to an alleged contemner was not performed, the counsel
for the prime minister stated that reading out the chargesheet to
the accused was not a "mere formality", but an "essential
formality."
Mr Zafar argued that contempt proceedings against his client were at
the stage of show cause notice, asking him to explain why contempt
process should not be initiated. It was still open for the court to
discharge the notice after getting the response from the respondent,
he stated.
He read out an identical statement which he had read before the
previous bench headed by Justice Sajjad Ali Shah on Nov 17.
Responding to newsmen's question was one of the responsibilities of
the prime minister, and it fell within the right of freedom of
expression and fair comment as guaranteed by Article 19, he said.
He said suspending the potency of the 14th Amendment through an
interim order without hearing the Federal Government or the attorney
general, had upset parliamentarians who raised the issue in the
parliament and this necessitated an explanation by the respondent.
He contended that by virtue of section 8 of the Contempt of Court
Act, Chief Justice Sajjad Ali Shah, after having taken cognizance,
could not proceed with the case.
Mr S.M. Zafar read out a transcript of the Press talk of the prime
minister in the parliament building. When he completed the reading,
the court inquired whether he owned it or not. He owned it by saying
that it was a transcript from PTV recording, and it was a true copy
of what the prime minister had stated. He said Press reports were
not accurate.
When the counsel for the prime minister insisted that it was a duty
of the attorney general to frame charges, Chief Justice Ajmal Mian
observed that in criminal matters, charges were always framed by the
court. Contempt proceedings, he added, were quasi criminal.
The chief justice observed that there were two types of contempt
proceedings: a) when contempt was brought to the notice of the court
by an individual; (b) when the court took suo motu notice.
Justice Shaikh Riaz Ahmed observed the only requirement was that the
alleged contemner should be informed of his alleged crime, and that
requirement had been fulfilled in the case under consideration.
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970802
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Kabul told of cut in transit trade list
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Ikram Hoti
ISLAMABAD, Feb 14: Pakistan has decided to cut the number of items
being imported under the Afghan Transit Trade Agreement, after the
government suffered a loss of Rs5 billion in revenue due to
smuggling of various items under the ATTA cover.
The decision was conveyed to the Afghan delegation members currently
visiting Pakistan. They were told that the government had no option
but to increase the number of items on the negative list to curb
smuggling.
The ATTA, signed in March 1965, had bound Pakistan government to
clear all imports made under the transit trade accord without
interception.
It has been exactly two years after subjecting the ATTA-65 to the
first negative list, that Kabul has been told that in view of
certain scandalous violations detected recently, more items would be
added to the negative list.
Dawn learned from the commerce ministry sources that the customs
intelligence had indicated recently that consignments solely of
sugar mills and flour mills had come ashore. On confirmation of
these reports, the federal authorities attempted to intercept the
consignments before they could be transported upcountry but in vain
as the ATTA-65 had no provision for interception of such cargoes.
This and other violations were listed and communicated to the
relevant Afghan authorities and it was maintained that Pakistan had
no other way of eliminating smuggling under ATTA but to extend the
negative list to a number of items already notified.
The 17 items that the ministry of commerce had placed on the
negative list in its notification No 2 (14)/92-Tr. 1, dated Feb 14,
1996, include: cigars/cigarettes, tyres/ tubes, dyes and chemicals,
yarn, PVC and PMC materials, polyester metalized film, black tea,
refrigerators, televisions and parts thereof, ball-bearings, soaps
and shampoos, auto parts of all sorts, timers/capacitors, vegetable
ghee and cooking oil.
It may be pointed out here that for the past two years, not only had
the Afghan authorities turned down Islamabad's repeated requests to
put a ban on import of these items, they even termed imposition of
the negative list as an encroachment on Afghanistan's sovereignty.
This attitude has forced Pakistan to unilaterally revise the ATTA-65
authorization, the ministry sources said.
In view of this situation, a commerce ministry communication last
week to the CBR (now renamed Pakistan Revenue Service) requested re-
examining of the Afghan Transit Trade Agreement of March 2, 1965,
without altering its fundamentals (as demanded by the Kabul
government recently).
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970802
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Reconstitution of PTV, PBC boards of directors urged
--------------------------------------------------------------------
By Our Correspondent
ISLAMABAD, Feb 14: A citizens' media commission has urged the
government to reconstitute the boards of directors and the PTV and
PBC to end the monopoly of official members and bring in private
citizens of acknowledged independence of mind and eminence.
These citizens, the commission said in its first seminar on
"democratic governance and freedom of electronic media", presided
over by its chairman, Justice Nasim Hasan Shah, here on Saturday,
should be appointed after the concurrence of the leaders of the
opposition in the Senate and the National Assembly. "While the
government can continue to have representation on the boards, the
majority must reflect a balanced, social presence," it stressed.
The "Citizens' Media Commission of Pakistan" has been established by
a group of private citizens with the avowed objective of serving as
an independent forum to conduct analyses from the public interest
viewpoint of media-related laws, policies and issues, as well as to
monitor the media content. Its first meeting coincided with the
first anniversary of the promulgation this day in 1997 of the
Electronic Media Regulatory Ordinance, 1997. Passed by the last
caretaker government, the ordinance was allowed to lapse. The
commission observed the day as "Electronic Media Freedom Day".
The meeting demanded that it should be the reconstituted boards of
the PTV and PBC, and not the bureaucracy, that should have the power
to appoint their chief executives on the basis of merit, integrity
and independence of mind rather than on political considerations.
Other demands made by the commission were:
* Appropriate amendments to the PBC Act, 1973 should be initiated
and discussed in the media before being introduced in the parliament
to ensure effective autonomy for PBC rather than the present
ceremonial autonomy.
* A draft of a new "PTV Act" should be prepared to create a
legislative framework for PTV to ensure authentic autonomy for the
Corporation.
* Government should reduce its share-holding in Shalimar Recording &
Broadcasting Co. Ltd. from its present 56 per cent to a minority
interest in order to enable SRBC to become a truly private and
independent corporation.
* The ordinance which enables the operation of private radio and TV
channels should be introduced to the parliament for adoption as an
act to enable the establishment of an autonomous authority headed by
a retired judge of the Supreme Court for the award of licences and
permits for private radio and TV channels.
* As provided for in the ordinance, private monopolies in electronic
media created through a non-transparent process should cease to
remain monopolies or enjoy exclusivity. Instead, while allowing them
to continue operation, the executive and monopolistic aspects of the
licences given to them should be changed to make them competitive
with new media.
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980219
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Relief for 1981-95 ad hoc appointees
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Correspondent
ISLAMABAD, Feb 18: The federal government on Wednesday said ad hoc
employees recruited from 1981 to 1995 would continue getting
salaries till a decision on their cases by the Federal Public
Service Commission (FPSC).
The Establishment Division in a Press note on Wednesday stated the
federal government had recently taken a decision to regularize
services of ad hoc employees appointed during the aforesaid period.
To ensure that the process of regularization was transparent and
conformed to a supreme court judgment requiring appointments on
merit, the cases of ad hoc employees had been placed in two
categories.
The first category comprised those employees who were fully
qualified and recruited in accordance with the prescribed procedure,
including invitation of applications through the Press and
observance of provincial quotas. The FPSC will process such cases
for recommendation in accordance with a procedure to be determined
by it.
To the second category belonged those cases in which appointments
were made in violation of the prescribed procedure regarding
qualification, provincial quotas and invitation of applications
through advertisement. Such appointees will appear along with fresh
candidates before the FPSC for selection.
To enable those ad hoc appointees who had crossed the age limit to
appear before the FPSC, the government would issue a notification
for an amendment in the relevant SRO.
The establishment division stated that the government had conveyed
its decision to the FPSC.
The division further stated that pending regularization of the ad
hoc appointees, periodic extensions were being granted after every
six months. The last extension was granted up to June 6 this year.
The establishment division dismissed reports that salaries of these
employees had been stopped.
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980218
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Proposal to raid Bara markets turned down
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Ikram Hoti
ISLAMABAD, Feb 17: The interior ministry has expunged a proposal
from the provincial anti-smuggling committees recently made through
consensus, for raids on all the smuggled goods (Bara) markets in the
country.
The proposal came, from the four provincial anti-smuggling
committees recently formed in all the provincial capitals, for
proposing ways and means for rooting out smuggling, after an
exchange of views among themselves, ministry of commerce and the
Central Board of Revenue.
Having formed the proposal through joint efforts, it was
communicated to the ministry of interior, for clearance. The
ministry was also asked for assistance for deputing the law
enforcement contingents, which were meant to accompany the raiding
ASC and customs officials, in all the four provinces.
The proposal was based on a thoroughly conducted survey of all the
Bara markets, the routes used for transporting the smuggled goods,
the names of owners of the shops, the quantities and nature of the
goods being sold there.
The CBR examined the ways and means to meet the demand of the
trading community to root out the scourge and arrived at the
conclusion that it cannot be done without intermittent raids on the
Bara markets.
The committees took about two months, first in examining the lists
of items and the location of the Bara markets, and then of the ways
and means suggested for taking practical steps. The ministry of
commerce proposals for lowering the duty rates on the items listed,
coincided this process.
The CBR responded by pleading that the duty rates had already been
lowered beyond a sustainable limit, and the national exchequer could
not afford losing another Rs 2-3 billion by taking the step.
Referring to the ASC proposal, it suggested that assistance be
sought from the ministry of interior, to assist the ASC and the
customs authorities, for conducting raids.
New proposals for improving the performance of the Civil Armed
Forces, which were reported to have miserably failed in stopping the
traffic of smuggled goods into Pakistan via Pak-Afghan borders, were
also made. Most of the goods is transported beyond the Durand Line
after import through Afghan Transit Trade facility of duty
exemption, and were re-smuggled into Pakistan.
Sources said the proposal on raids was sent to the ministry of
interior and the response was awaited for about a month, whereas,
the ASC and the CBR considered it a matter of priority, and were
pressing for a positive response. The ministry of interior, at last
responded in negative to the proposal, with remarks which were least
expected.
The ministry told the ASC and the CBR that the need of the hour was
to supervise the performance of the ASC by the four provincial chief
ministers. The ministry mentioned a number of already applied
methods for conducting such a supervision, and listed a couple of
new methods. These relate to bettering the performance of the Civil
Armed Forces along the Durand Line, and the performance of the
provincial excise departments.
The proposal for assistance from the law enforcing agencies, to
conduct raids on the Bara markets, has not been considered by the
ministry as worth undertaking. The ministry did not even list the
arguments in favour of its rejection of the proposal.
===================================================================
B U S I N E S S & E C O N O M Y
===================================================================
980220
--------------------------------------------------------------------
Private forex deposits within safe limit
--------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, Feb 19: The present level of private foreign currency
deposits is safe enough to withstand any shocks, the National
Assembly standing committee on finance and economic affairs was told
by the State Bank on Thursday.
The committee was told during a briefing at the SBP that the private
forex deposits totalled $9.8 billion early this month which posed no
threats for the economy, said a source privy to the briefing.
He said the committee headed by Sardar Mansoor Hayat Tamman had
shown some signs of concerns regarding dollarisation of the economy.
"The committee was told that 70 per cent of private forex deposits
were those against which loans had been issued," the source said.
"The remaining 30 per cent are covered by the country's liquid and
gold reserves."
The source said the committee was informed that out of the total
private forex deposits of $9.8 billion, $2.0 billion related to
forward cover purchased by the exporters that would keep flowing
into the country's liquid forex reserves in parts.
Private forex deposits account for roughly 40 per cent of the total
time and demand liabilities of the banks operating in Pakistan.
Another sources privy to the briefing said the committee also
discussed the creation of excess liquidity in the banking system and
its utilization. "The committee noted that more than Rs 140 billion
worth of excess liquidity was available in the monetary system." The
source said the committee expressed its desire that the excess
liquidity be directed towards productive use.
He said the committee was informed that during the first seven
months of the current fiscal year ending January lending to the
private sector had risen to Rs 63.174 billion against Rs 56.701
billion in 1996-97. "But the committee pointed out that the lending
to private sector registered a really significant increase during
the last two months," he said. "The committee noted that had there
been an increase in private sector lending right from the beginning
of the fiscal year it should have done more good to the economy. The
source said the SBP official explained to the committee the reasons
for uneven increase in lending to the private sector including
seasonal variations in the demand for bank credit.
He said the committee was also explained the reasons for a huge Rs
5.089 billion rise in credit to the public sector corporations
during the first seven months of 1997-98 against a Rs 574 million
contraction during the same period in 1996-97.
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970802
--------------------------------------------------------------------
Second major gas discovery in Sindh
--------------------------------------------------------------------
Muhammad Ilyas
ISLAMABAD, Feb 14: A second major discovery of high quality gas in
Sindh in as many weeks was announced here on Saturday.
Described as a breakthrough in efforts to reduce Pakistan's
dependence on energy imports, the new discovery of oil as well as
gas has been made by Oil & Gas Development Corporation (OGDC) in
Tando Allah Yar which contains, according to tentative analysis,
around two million stock tank barrels of oil and 38 billion cubic
feet of gas.
It will be recalled that the Australian oil and chemicals group OMV
had announced last week that its subsidiary, OMV (Pakistan)
Exploration GmbH had struck gas at Sawan-1, the first exploration
well drilled in the South West Miano exploration licence, which is
situated in Khairpur district, Sindh.
At Tando Allah Yar-I, OGDC spudded the well on Nov 15 last over the
area awarded to it in September, 1997 and drilled down to the depth
of 1750 metres. The objective, according to the official source, was
to test hydrocarbon potential of Lower Goru Formation (Upper sands)
of cretaceous age. The drilling was completed last month.
During the test, the well flowed from two zones at a combined flow
rate of 380 barrels of oil and 16 million cubic feet of gas per day.
According to the details, the first zone flowed at 1/2 inch choke
size, well pressure 1550 (PPSI) 290 barrels of oil and 7.6 (MCF) gas
per day. In the second zone at 1/2 inch choke size, well pressure
1700 (PPSI) oil flowed 90 barrels and gas 8.5 (MCF) per day. The
well has been completed as a dual producer to produce from both
zones.
The gas found has a calorific heating value of 874 BTU per cubic
feet and with a composition of Methane and Ethane of 72.8%, Nitrogen
13.4% and CO2 9.9%. There is no sulphur in the gas. OGDC plans to
appraise the field through additional drilling in the area.
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980221
--------------------------------------------------------------------
IMF asks govt to cut spendings
--------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, Feb 20: The IMF has asked the government to cut its
across the board expenditures to reduce budget deficit, and allow
Corporations to raise tariffs with a view to improving their
financial health.
Informed sources told Dawn here on Friday that the ongoing two weeks
long negotiations with the visiting IMF mission headed by Antonio
Furtado were likely to end by Sunday next after its crucial meeting
with Minister for Finance Senator Sartaj Aziz.
The mission had held talks here on Friday again with the officials
of the ministry of finance, Planning Division and the State Bank
during which, it expressed concern as to why different targets
related to GDP growth, revenue, exports and other fiscal issues were
not met.
Sources said that the major thrust of the mission was that the
government must reduce its expenditure on all accounts so that its
budget deficit could be reduced and growing funding difficulties
removed.
"The declining revenues and growing expenditure of the government is
a matter of concern for the IMF", said a source in the multi-lateral
agency. He told Dawn that the mission had completed the review of
the Pakistani economy and would now meet the finance minister on
Saturday or Sunday to conclude talks.
However, sources said that the five-member IMF mission called for
urgently increasing power and gas charges to make WAPDA, KESC, Sui
Southern and Sui Northern gas companies financially viable. They
advised the government to take bold decisions without caring for the
political consequences so that the economy of the country could be
improved.
Sources said that 10 to 12 per cent increase in the electricity
charges was very much on the card and would be announced shortly.
The prime minister, sources said, has finally agreed to revise
upward power tariffs to save WAPDA from total collapse.
Sources said that the visiting IMF mission had sought details about
broad new budgetary projections for the year 1998-99 specially
revenues, exports, deficit, growth, inflation and the status of
various corporations. It wanted to know about those state-owned
corporations which are likely to be privatized during the next
financial year. However, it expressed disappointment over the
current pace of privatization and called for its acceleration. The
sources said that the mission had advised the government to get rid
of loss making industrial units as quickly as possible and forget
about pumping money into them.
The officials, when contacted, said that talks with the IMF have
been progressing well despite its reservations on some issues
specially revenues and the poor performance of the corporations.
They expressed the hope that Pakistan would qualify for the second
tranche of 208 million dollars in March, out of 1.6 billion dollar
ESAF/EFF.
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980221
--------------------------------------------------------------------
NA body for review of NBP privatization decision
--------------------------------------------------------------------
Staff Reporter
KARACHI, Feb 20: The chairman of National Assembly's standing
committee on finance and economic affairs, Sardar Mansoor Hayat
Tamman indicated on Friday that the committee would recommend to the
government to review its decision of privatizing National Bank.
"If there was a categorical stand on this issue that should be
rethought," he told a press conference after receiving a briefing by
the NBP president Mohammedmian Soomro and other senior officials.
Two of his colleagues Mr Ejaz Shaffi and Rana Tanvir Azhar frankly
said they would like the NBP not to be privatized as they said it
was the only well-performing state-run bank implying it should
remain in the public sector.
"A final decision rests with the ECC (Economic Coordination
Committee)," said Mr Tamman adding "the committee would make its
recommendations on this issue." Earlier some press reports suggested
that the government intends to put off the NBP privatization.
Mr Taman said the Bank has made a 100 per cent provisioning against
its classified portfolio of Rs 31.886 billion and despite that has
achieved what he called worthy financial results.
The committee was told that the capital base of NBP rose by 19.8 per
cent to Rs 8.444 billion in 1997; its total assets grew by 5.5 per
cent to Rs 390.5 billion; deposits increased by 8 per cent to Rs
262.505 billion and gross advances swelled by 18.4 per cent to Rs
131.848 billion.
The committee was further told that the gross profit of NBP
increased by 13.4 per cent to Rs 4.9 billion in 1997 against Rs
4.322 billion in 1996 adding that cash recoveries soared by 107.4
per cent to Rs 2.759 billion in 1997 from Rs 1.33 billion in 1996.
Mr Tamman said the NBP management had told the committee there was
not the slightest of window dressing in its balance sheet adding the
committee warned them if any window dressing is detected later on
the management would be taken to task.
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980219
--------------------------------------------------------------------
Participation of local engg industry mandatory
--------------------------------------------------------------------
By Intikhab Hanif
LAHORE, Feb 18: The federal government has advised provinces to
award turnkey contracts with full participation of local engineering
industry with foreign manufacturers/contractors.
According to the new strategy contained in a directive of the Prime
Minister Nawaz Sharif seeking immediate and strict compliance,
turnkey contracts should not be allowed, ordinarily, to the foreign
manufacturers/contractors.
Instead, sources said quantified efforts will be made to fully
associate local engineering industry with the foreign
manufacturers/contractors for achieving optimal import substitution
and indigenization.
The concept of EPC (engineering, procurement and construction) will
be promoted for award of contracts to local manufacturers/suppliers
with or without any consortium arrangements with foreign technology
partners, the directive said.
Regarding public sector organizations, the directive said, they will
place orders to meet their requirements of capital goods on local
manufacturers/suppliers in public sector on negotiation basis in
case of a single source and if international financing is not
involved.
Public sector will ensure that the specifications of all supplies
and services for major industrial and infrastructure projects be
designed and tailored in a manner that the use of locally
manufacturers goods, as per CGO 17/94, is fully ensured.
The tender conditions in such cases will make provision for
acceptance of alternate or substitute goods which are produced
locally of international standards.
Provisions of SRO 1083(1)83 will be complied with by all public
sector organizations and the National Council for the Engineering
and Industrial Coordination will monitor the progress of the
directive, and intervene, whenever necessary, to ensure
implementation, the directive said.
In Punjab, the directive was circulated among all administrative
secretaries, divisional commissioners and heads of autonomous bodies
for compliance on Wednesday.
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980218
--------------------------------------------------------------------
US firm gets patent to market Basmati
--------------------------------------------------------------------
Shaheen Sehbai
WASHINGTON, Feb 17: While Pakistan produces and exports the best
basmati rice in the world, an American company has obtained the
patent to market its product in US and internationally under the
name of "Basmati Rice".
Surprisingly as Pakistanis are so far silent on the development,
probably not even aware of it, the Indians are mounting a legal
challenge to capture the patent, in what could turn out to be a long
drawn rice war.
"If Pakistanis want to remain in the rice market worldwide, they
will have to quickly prepare their legal case and start fighting," a
seasoned businessman said.
India hopes that the US government will withdraw a patent issued to
a US company for Basmati rice as "there are enough records to prove
that the rice is typically Indian," the Indian Ambassador said at a
Press talk with Indian journalists.
While both US and India are either wholly or partially irrelevant to
the subject, the party which should have been the most active and
worried, the rice exporters of Pakistan and the official Export
Promotion Bureau, are intriguingly quiet and doing nothing.
The Indian Ambassador said India was preparing the necessary
documentation to rebut the company's claim. "It is basically a case
of going over the legal procedures to correct (a mistake by the US
patent office)," Ramesh Chandra said. The US firm, Ricetec, which
currently markets its product under the name 'Texmati,' is claiming
that its strain of crossed rice is "similar to or even superior to
good quality Basmati rice."
The Indians are claiming that the US company does not claim that its
product is "Basmati rice", which they claim is grown in a particular
area of Dehra Dun district in Uttar Pradesh.
Chandra said the claim advanced by the company was a misuse of the
process of patenting.
Ricetec has already been trying to stake a claim in the
international Basmati market with brands like 'Kasmati' and
'Texmati', which claim to be "basmati-type" rice.
However, Ricetec will now be able to not only call its aromatic rice
'Basmati' within the US, but also sell all its rice exports under
the name of Basmati rice.
The Indians say the grant of patent to the US firm will result in
India losing out on the 45,000-tonne US market, which forms 10 per
cent of the total basmati exports. Its premium position in vital
markets like the European Union, the UK and West Asia will also be
affected.
The Pakistanis are yet to enter the legal or even the public
relationing battle to stake a claim.
India Press reports say stunned by the development, the commerce
ministry, the APEDA, the Indian Agricultural Research Institute, and
the Indian Council of Agricultural Research, and the Basmati
industry have together decided to immediately challenge the patent
given to Ricetec by the US government.
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980221
--------------------------------------------------------------------
PTCL's after tax profit boosts stocks
--------------------------------------------------------------------
Staff Reporter
KARACHI, Feb 20: Stocks on Friday showed firm trend, boosted largely
by PTCL's above market expectations after tax profit of Rs 7.56
billion for the half year ended December 31, 1997.
Although its board of directors, which met on February 20, did not
declare any interim dividend, the market perception of an enhanced
final triggered buystops in its share, currently ruling well below
its best level.
"An increase of about 15 per cent in interim posttax profit is a
handsome return and investors welcomed it in that spirit," said a
broker.
The market has been ruling directionless for the last several weeks
but analysts believe investors might not treat it as they did with
Hub-Power, which came out with a good interim dividend of 70 per
cent some two weeks back.
There are several reasons behind this perception as the market size
and shareholding of the PTCL is much bigger than Hub-Power and added
to extensive foreign stake, they added.
"The share of PTCL, which has been under pressure for the last
couple of sessions owing to conflicting reports about its interim
earning, rebounded after its board meeting announced above market
expectations profit," analysts said. But the board did not declare
any interim payout.
An interim earnings at Rs 23 billion show an improvement of over 14
per cent over the last year's comparable figures and there are
reasons to believe that the final might be much higher. Last year
its management declared a cash dividend of 17.5 per cent.
The market has been expecting an interim aftertax profit of around
Rs 6 billion to Rs 6.5 billion but it soared to Rs 7.65 billion
It was last quoted at Rs 34.20, up Rs 1.45 on a massive activity of
28 million shares.
"Being a highly capitalized share and having a weightage of 32 per
cent in the KSE 100-share index, the PTCL is capable of taking the
entire market along with it where it wants to," said a leading floor
broker.
The market has been under tremendous pressure owing partly to
political twists and partly to adverse comments on the Karachi law
and order situation and positive news from the PTCL provided the
much-needed breather to it, he added.
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980217
--------------------------------------------------------------------
IMF insists on urgent hike in power rates
--------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, Feb 16: The visiting five-member IMF mission, headed by
Fund's senior director Antonio Furtado, has advised the government
to immediately increase electricity charges to save WAPDA from total
collapse.
Informed sources told Dawn that the IMF mission had a detailed
meeting with Deputy Chairman Planning Commission Dr Hafeez Pasha and
other senior officials of the ministry of finance here on Monday
during which the IMF team members advised them to revise upward
power tariffs to help WAPDA tide over the acute financial straits.
The sources said that the IMF mission endorsed the contention of
Finance Minister Sartaj Aziz and Water and Power Minister Raja Nadir
Pervaiz that power charges should be increased. Both the ministers
had proposed to the prime minister to allow an increase of 10 to 12
per cent in power charges.
Dr Pasha told Dawn that talks held with the IMF mission on Monday
mainly focussed on WAPDA during which various options to pull the
organisation out of the financial predicament were discussed.
Dr Pasha said the Fund members were apprised of WAPDA's financial
position and its deficit and added that the government was examining
various probabilities for making WAPDA an efficient and profit-
making organisation.
Responding to a question Dr Pasha said that policy-level discussions
with the IMF team concluded on Monday and discussions on major
issues covered under the Extended Structural Adjustment Facility
(ESAF) would begin on Tuesday.
To another question he said revenue shortfalls, GDP growth, budget
deficit, balance of payment position, inflation etc. would come up
for discussion during Tuesday's meeting.
The sources said that the IMF mission called for curtailing
government expenditures. Revenue slippages, decline in exports and
steps to increase foreign exchange reserves were also discussed.
The IMF mission, however, appreciated government's efforts to reduce
the current account deficit from $4 billion to $2 billion.
The sources said that the IMF mission also called for accelerating
the pace of privatisation. It inquired as to why the government was
unable to disinvest nationalised commercial banks (NCBs) and
development financial institutions (DFIs) by March 30 this year.
-------------------------------------------------------------------
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E D I T O R I A L S & F E A T U R E S
===================================================================
970802
--------------------------------------------------------------------
Credibility: zero minus
--------------------------------------------------------------------
Ardeshir Cowasjee
WHILST flying to Islamabad last November a well-dressed well-
mannered man sitting besides me greeted me with a 'Salaam alaikum.'
I responded with an 'Alaikum assalaam' and enquired if he was a
Pakistani. He answered with a "Thank God, no", and introduced
himself as Daud Bokhary, a former officer of the British-Indian army
who had settled in Hong Kong and had been doing business there for
fifty years.
A successful stockbroker, he had just retired and handed the
business over to one of his sons. "I hope my son will follow my
principles," he said, "for, as the old saying goes, 'loss of gold is
much, loss of time is more, loss of honour is such that nothing can
restore it'."
Another son, Hong Kong-born Kamal Bokhary, just turned fifty, read
law in England, was admitted to the Hong Kong Bar in 1971 and in
1984 became a Queen's Counsel. He was appointed a judge of the court
of appeal in 1993, and on July 1, 1997, at the Hong Kong hand-over,
had been elevated to the court of final appeal which on that date
replaced the British Privy Council.
He was proud of his family's achievements, remarking how it is that
whenever Pakistanis go abroad to settle and do business they do
exceedingly well, as he had done. But in their own country they are
non-achievers for want of good government, honest government, and an
atmosphere conducive to hard work. They are weighted down by leaders
unable to set any sort of example, by discriminatory laws, and by
ever-increasing corruption.
Bokhary was visiting Pakistan to attend an investment conference
organized by the government. "Are you investing in Pakistan?" I
enquired. With astonishment bordering on anger he replied, "Having
conversed with me for an hour, do you really take me to be such a
damned fool? The Pakistan consul-general in HK, a friend, had to be
supported."
At the Islamabad airport Bokhary was met by a green-blazered
government PR man and taken off with two others who were to attend
the conference and had arrived on the same flight. Waiting to
collect my baggage, I was accosted by another green-blazer and asked
whether I was conference-bound Mr McDuff of McGregor & McGregor. I
was asked the same question in the space of ten minutes by two more
searching green-blazers who were trying to locate the fourth member
they were sent to collect. It seemed that Mcduff had just not taken
off. The dour Scots value money and time.
What the prime minister and his underlings must realize is that they
totally lack credibility, and merely rounding up a herd of bakras
can do us no good.
Moving on to the prime minister's nationally televised conference of
January 20, where some 200 businessmen and chief executives of the
banking, trade, commerce and industry sectors, both national and
multi-national, had been summoned to form the private sector
advisory council (PSAC) for investment. Many of those attending
were, in the words of a Lahore daily, "in the forefront of the
outstanding Rs. 140 billion bank loans default." The leading
defaulters complained that they were not being given further loans
at low interest rates. Governor Yaqub of the State Bank was asked to
respond. He did, giving cogent fiscal reasons which the prime
minister could not comprehend. Playing to the gallery, Nawaz Sharif
derided him, which compelled him to hand in his resignation, which
in turn has further destabilized us.
It is a matter of deep regret that there were many Pakistani head
honchos (some of them kala sahibs) in the audience capable of
understanding and appreciating the governor's stance, yet not one
rose to speak up in his defence. When Nawaz Sharif invited Tom
Higgins, the head of Shell, to rise and speak, he was forthright and
to the point. He was the only man who had the guts to support
Governor Yaqub. What does this tell us about our own countrymen who
held their peace? Frightened and silent, can they do us any good?
But our press has spoken. Editors and columnists have written loud
and long. Why is a man capable of standing up against wrong being
sacrificed for expediency? Why is he not being allowed to complete
his second term ending in 2001?
Nawaz Sharif would fare well if he were induced to read the February
10 editorial in The Times (London), 'Honest banker Eddie George
should be appointed for a second term', concerning the governor of
the Bank of England, which Tony Blair has read and understood. "Mr
George has done a generally good job, contributing as much as
anybody to the healthy condition of the British economy today.
Within the framework set by the new Government, Mr George has
performed competently... The reprehensible arguments against Mr
George relate to his political independence... When it comes to
political independence, Mr George stands guilty as charged... The
questions that the Prime Minister and chancellor must now answer are
simple. Do they want the Bank run by a man with a good professional
reputation, a realistic view about EMU and a strong record of
putting statutory duties above short-term political calculations?
Were they serious about wanting a non-political monetary policy
designed to keep inflation permanently under control or was the
decision to give independence to the Bank of England just a short-
term political wheeze? Do they want a yesman who will turn the Bank
into an arm of the Government's public relations and re-election
machine? When the Government announces its decision, the financial
markets and the voters will be entitled to draw some clear
conclusions."
A copy of this editorial has been sent to Nawaz Sharif's law
minister who maintains that he seldom reads our newspapers. This
being so, he may not be in touch with public opinion.
Reverting to the tall Britisher who stood up and spoke, Tom Higgins
has been in Pakistan for five years, over which period I have sat
with him as a fellow director of Pakistan Refinery. There has not
been one occasion when one could fault his views on business, wonky
government policies, and investments in his host country. He is a
trained economist, did his PPE at Oxford, and is willing to meet the
prime minister, one-to-one, and tell him what he finds to be right
and wrong. Nawaz Sharif would do well to call and hear him. He can
tell him how those who have invested in the oil exploration and
industry, and other investors, have suffered. As the past president
of the Overseas Chamber of Commerce and Industry he has heard and
knows enough.
At Davos, to which conference the prime minister was accompanied by
a plane-load of ballast, he must surely have realized that
Transparency International is not to be treated as a joke. TI's
Chairman, Peter Eigen, was invited as a member of the panel that
discussed "international corruption." During the discussion, Benazir
Bhutto and Asif Zardari figured prominently, marginally ahead of the
Marcos clan and the Mobutus. According to TI's 1997 rating, Pakistan
still ranks amongst the first three most corrupt nations of the
world. May 1 suggest that the prime minister discuss Davos with
Ikram Seghal, the only Pakistani private entrepreneur who went to
Davos this year at his own expense.
>From Davos, the plane-load of ballasts proceeded to London for a
shopping spree. Whilst the shops were shut, an investment promotion
conference was held where Nawaz Sharif spoke. Our professional
conference organizers had arranged for a select group of fifteen
potential investors to meet Nawaz sharif over lunch. In true
Pakistani style, it was infiltrated by some 50 gatecrashing hangers-
on, including Nawaz Sharif's son, and no serious discussion took
place.
On their return to Pakistan, came the 2010 conference held on
February 10. The cottage-industrialists who were rounded up to fill
the galleries were party street-strongmen. Nawaz Sharif showed up 75
minutes late. The speakers were programmed to tow the line in
approbation of the investment policies, amongst them a defaulter who
has skimmed the country's banks and financial institutions of over
Rs. 1 billion, the man who had won Benazir Bhutto's favour in her
first round by arranging to confer upon her an honorary doctorate
from a non-existent university.
Editors and columnists, barring those bribed by the government, who
are inimical to those in power to their ways, their arrogance,
their corruption, the manner in which they live and lord it over us
at our expense are neither enemies of the state nor of its people.
They fear spiralling prices, food and water riots, anarchy.
"Hundreds rioted in an Indonesian town on Thursday as President
Suharto ordered his military to be prepared to deal with mass unrest
and moved to shore up control of the armed forces. Mobs enraged by
soaring prices of basic goods rampaged..." (Dawn, Feb 13).
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980221
--------------------------------------------------------------------
Nice work if you can get it...
--------------------------------------------------------------------
Irfan Husain
IT may seem like sour grapes, but the spate of recent multi- million
rupee appointments in the public sector has left me wondering
whether I chose the right time to move into the private sector after
30 years of government service.
On the other hand, it is people from the private sector who are
hitting the jackpot, so maybe I can do a sort of lateral re- entry
back to the government on a juicy contract. The sad truth is that
career civil servants will continue to be paid a pittance while
their counterparts will command extraordinarily high salaries for
accepting official appointments.
Currently, a joint secretary in the federal secretariat has a
monthly take-home pay of around Rs 17,000; if he is lucky, he will
also have government housing, although there is a long waiting list.
He is not entitled to official transport for private use, and
although he has a few perks like a free residential telephone
(subject to a ceiling), he leads a pretty hand-to-mouth existence,
despite the fact that typically, he has around twenty years of
service behind him. And contrary to popular perception, most civil
servants in Islamabad have very few opportunities for bribes.
To add to his difficulties, the capital is Pakistan's most expensive
city, and public transport is virtually non-existent. Given the
terrible state of public education, he sends his children to private
schools; and given the nature of his job, he has to dress reasonably
well. Small wonder that financial worries prey constantly on his
mind.
And this is the reality for the senior echelons of the federal
bureaucracy; imagine what things are like for section officers and
office assistants. To expect efficiency and high performance from
them after underpaying them so grossly is unrealistic. obviously,
the situation changes in the field: an assistant collector of
Customs in grade 17 in the field probably makes several times in
bribes what the member (customs) in the Central Board of Revenue
draws as salary, despite the fact that he is in grade 21. As a
consequence, there is a large built-in gap between the incomes of
secretariat staff and those in the field. Now the government has
accentuated these distortions and added to the frustration of
Islamabad-based civil servants by creating a new class of public
functionaries drawing private sector salaries. Indeed, some of these
salary packages are positively obscene: apparently, the new chairman
of the CBR is getting Rs 1.75 million per month plus perks which
include a hundred-thousand rupee house, medical treatment for him
and his family abroad, and an annual educational allowance of
$10,000 each for his children. The total package works out to around
2 million rupees a month, which translates into over half a million
dollars a year. Not too many top executives abroad get this kind of
remuneration.
Now, apart from a pang of pure envy, I have no quarrel with somebody
making this kind of money. But when my taxes are being arbitrarily
distributed in this fashion, I feel I have the right to raise an
eyebrow. But more important than objections over this profligacy,
there is the whole larger question of a class-based civil service.
What are these huge disparities doing to morale? I know if I were
still in government service and working in the secretariat, I would
feel mightily aggrieved if somebody parachuted in from the private
sector and was given a hundred times what I was getting for
basically doing the same work.
I am quite willing to accept that the new CBR boss is a very
effective manager; but the point to remember is that he will have to
work through the same bureaucratic structure that his unsuccessful
predecessor did. No matter how intelligent and hard working he is,
he is bound to face resentment and a lack of cooperation from the
rank and file. In addition to his own expensive presence, he is also
bringing in six outsiders, again at very generous private sector
salaries. We will now have these new contract members working side
by side with career revenue officers who are getting a fraction of
their new colleagues' salaries, despite the fact that they have
years of experience.
Unfortunately, this new scheme will do nothing to curb the massive
corruption that has virtually brought our tax-collecting machinery
to a grinding halt. Quite the contrary: officers may well feel that
they are justified in ripping off the exchequer because they are so
underpaid when compared to the CBR chief and his merry men. The
whole exercise was sardonically depicted by a recent cartoon in a
Lahore daily: a man is replacing the CBR sign with a PRS (Pakistan
Revenue Service) sign; the caption reads: "Revolutionary Changes In
Tax-Collection System."
Another appointment to raise eyebrows and hackles is that of the
federal education secretary. This gentleman, previously a little
known associate professor at a private business management
university in Lahore, has suddenly been given a contract and a
reported salary of Rs 1.6 million. According to various newspapers,
his true qualification is that he is related to the country's first
family. But even if he had extraordinary abilities, the fact is that
he could do very little to rescue our public education from its
state of collapse. Education is a provincial subject and the federal
government has a very small role, apart from monitoring the
situation. True, there are innumerable organizations nobody has
heard of that are attached to the federal education ministry, but
its actual role is marginal at best. So how the new secretary will
make any difference to anything is unclear.
In the seventies, there was a lateral entry scheme whereby people
from the private sector joined government service at higher levels.
However, they did so on the existing civil service salary structure.
In the United States, there is a long tradition of top private
sector executives joining the government at the highest level for
the tenure of an administration; but here, too, they accept a
drastic reduction in their salaries. They do so because they
consider that they are compensated by the status and power their new
jobs give them. Also, there is a long history of public service in
America that is sadly lacking here.
What we are seeing in Pakistan today is a raid by a bunch of
carpetbaggers who are in it only for the money. Nawaz Sharif needs
to realize that there are no quick fixes if he wants to reform the
system. Basically, state functionaries have to be paid a decent
salary before we can demand that they perform at a certain level. By
all means trim the bureaucracy, and close down the vast number of
departments that have proliferated. But all this takes political
will, something in short supply with this government.
Meanwhile, until somebody with some spine shows up to tackle this
and other problems, we will just have to muddle along while the few
lateral entrants will thrive. As the song in the musical "Crazy For
You" goes: "Nice work if you can get it, and you can get it if you
try."
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980221
--------------------------------------------------------------------
Promise and performance
--------------------------------------------------------------------
Shaikh Manzoor Ahmad
THE golden jubilee year of our independence ended just a few weeks
ago but its trail of turbulence has left us in anything but a
celebratory frame of mind. Most intellectually aware Pakistanis
consider it an eminently forgettable year because of rapid
deterioration of law and order, coupled with terrorist violence,
soaring unemployment, severe stagflation, general administrative
collapse and massive corruption.
And, to cap it all, there were open conflicts among some of the
highest state functionaries, leading to premature exit of President
Leghari as well as CJ Sajjad Ali Shah amidst an intra- judiciary
split in the supreme court. On the other hand, for some others like
PM Nawaz Sharif, President Tarrar, and all their cohorts, things
could not have turned out any better and it proved to be an
unforgettably glorious year.
The most haunting memories of 1997 we carry with us into the new
year are those of the TV footage of storming / ransacking of the
country's apex court by a frenzied mob of ruling party goons. This
was indeed a new low in our sordid political culture and has, quite
justifiably, earned us worldwide scorn. After such a traumatic year,
one felt entitled to hope for a somewhat more placid 1998; but, that
alas was not to be.
We made a spectacularly inauspicious start to the new year with the
Mominpura (Lahore) massacre of January 11 when about 75 persons, out
of nearly 1,000 attending a religious majlis at a graveyard, were
mowed down (25 killed) within a few minutes in broad daylight and
without any provocation whatsoever by three or four terrorists who
arrived in a stolen vehicle and departed the same way, after
completing their heinous sectarian mission.
The perpetrators of this carnage, as of innumerable others over the
past several years, remain untraced even though the usual charade of
fearsome rhetoric by the PM/CM ordering the police and other
concerned officials to nab the culprits within three days was duly
enacted. A follow-up public statement affirming very strongly that
"terrorists qanoon ke grift se naheen buch saghenge" was also
routinely issued by the same VVIPS to assuage seething public anger
immediately after the occurrence of this horrific crime. Of course,
the ever elusive "qanoon's grift" is nowhere in sight so far, much
to the comfort of all terrorists who naturally feel greatly
emboldened to repeat their crimes with great frequency. The rituals
of tough talk, coupled with the setting up of special investigating
teams etc., no longer carry any credibility with the long suffering
people, who have very little faith in the government any
government and its myriad agencies.
Pakistan appears to have become a safe international haven for
terrorists of all hues and colours as so many of them have been able
to operate in and from our country for several years now, quite
freely and fearlessly, without ever being caught / punished. Karachi
was totally at the mercy of terrorists during the Jam Sadiq era and
it was only after General Babar's highly successful crackdown on
terrorists that peace was restored to this city. Unfortunately,
Karachi is once again slipping into unbridled terrorism, which is
creating an acute sense of insecurity in the general public.
The recently enacted anti-terrorist law seems to be proving much
less effective than expected as the heavily armed terrorist militias
appear to have succeeded in intimidating both the trial judges and
the police into avoiding any decisive action against them. The
police reportedly go to great lengths to submit weak challans while
the trial judges try to prolong the proceedings inordinately so as
to delay decisions as long as possible. The entire purpose of
setting up the anti-terrorist courts will be defeated if the
government fails to take very strong action to overcome this
situation.
Entrusting the task of eliminating terrorist menace to the armed
forces appears to be the only viable option in the present
circumstances. A terrorism-free society is vital not only to our
socio-economic health but also to our very survival as a nation of
some consequence. We cannot possibly allow our country to become
another Afghanistan or Algeria.
The country's economy the most important plank of Mian Sahib's
manifesto is another dismal story. It continues, after full one
year of the incumbent government's rule, to be in a comatose state
and the much trumpeted seven "revival packages" have flopped badly.
While the many incentives offered by the 'business friendly'
government have been greedily grabbed, the beneficiary
industrialists and businessmen have shown no inclination whatsoever
to keep their side of the bargain by paying up their taxes and other
government dues, which every responsible citizen is expected to do
even without any special incentives.
The total revenue collected during the first half of the current
financial year (CFY 1997-98) fell, as indicated in the State Bank's
official report for the second quarter, short of the target of Rs
148 billion by a hefty Rs 13.5 billion. Even more alarmingly, this
revenue collection is 2.4% less than that for the same period last
year (July-December '96), which was described by the then government
itself as the worst ever in the economic history of Pakistan. This,
then, is the state of affairs in spite of the fact that the windfall
profits resulting from a steep fall in the international prices of
oil during the last six months have been retained by the government,
contrary to the agreement signed with the IMF, instead of passing on
the benefit to the consumers.
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980217
--------------------------------------------------------------------
Bilateralism is not the option
--------------------------------------------------------------------
Mushtaq Ahmad
WHILE public opinion in Pakistan will appreciate the wisdom of Mian
Nawaz Sharif in refraining from the resumption of talks with the
present government of India in the prevailing state of uncertainty,
few will subscribe to his optimism about their prospects with the
successor government.
Experience is a great teacher from which Pakistan has a great many
things to learn. In the field of diplomacy the nastiest things are
done in the nicest way. Some nations excel in this art. We, on the
other hand, are too straight forward and outspoken to be adept in a
technique that demands an extraordinary degree of flexibility of
conscience and cleverness of mind.
Sophistication and hypocrisy which conceal standards behind their
facade duplicity and double dealing are not in our grain. We call a
spade a spade and the Indians call a kitchen knife a bread knife.
There are diplomats naive enough to believe them. That we have not
yet found out the truth about these lies is our misfortune. The
essential goodness of human nature reflected in the confession of
wrongs men commit is invariably missing from the practice of
statecraft where 'my country right or wrong' is the golden rule.
India has unerringly followed that rule. We have yet to comprehend
that in dealing with Pakistan. India's traditional strategy is to
buy time in the hope that with its passage the issues that plague
their relations will die out and become part of forgotten history.
India has been nursing this illusion ever since the two countries
attained their independence totally forgetful of the disastrous
consequences of the havoc unsettled disputes can cause between
nations. Nations who are wronged never forgive the wrongdoers. If
individuals do not forgive the confiscation of their properties even
by their relations, how can countries be expected to condone the
forcible occupation of their territory and the enslavement of its
population. The Saar dispute between France and Germany and the
Sudetanland between Germany and Czechoslovakia are matters of recent
memory and we are still living with their aftermath. Going back into
history, it had taken thirty years of armed conflict between the
authority of the Universal Empire of the Church and the assertion of
national sovereignty of the states, to be settled. India and
Pakistan have been embattled in a cold war for fifty years and
fought three wars for the dispute over the future of Kashmir.
Will the new rulers of India be more responsive to the demands of
peace in the subcontinent is a question impossible to answer in the
affirmative. All the preceding governments regardless of their
political complexions and the personalities who have governed the
country, have followed a policy of no compromise with Pakistan,
notwithstanding their secular professions and loudly proclaimed
peaceful disposition.
Even a leader of Pandit Nehru's humanitarian outlook who had given
the United Nations an undertaking to abide by its resolutions to
hold a plebiscite in the state under international supervision had
gone back on his word to retain his leadership image by the
appeasement of public opinion in support of the incorporation of the
state in the Indian Union.
Whether urged by the inner compulsions of power or national prestige
with which it was intimately linked, Nehru had one of his closest
friends and lieutenants, Sheikh Abdullah, who was by no means
favourably disposed towards Pakistan, imprisoned and incarcerated in
jail for several years for demanding the right of the people of
Kashmir to self-determination, and his son, Farooq Abdullah, has now
been rewarded with the chief ministership of the state for denying
them that right and assisting the government of India in suppressing
the freedom struggle.
The prospects of a settlement were never bright then and now seem
more bleak than ever before. The bellicose mood of the country and
the intolerant temper of the people symbolized in the upsurge of an
aggressive nationalism does not augur well for the future of Indo-
Pak relations. The experience of the past has convincingly
demonstrated the futility of achieving a reasonably acceptable
solution through negotiations in the future. Their story of unending
series has no precedent in the annals of diplomacy. A cold war
punctuated by countless number of talks at the ministerial and
secretarial level and between the highest functionaries of the state
has produced no encouraging response, nor is it likely to produce it
so long as might is allowed to have precedence over right.
Ideologue of the Bharatiya Janata Party has made no secret of their
intentions to annul the partition. That the party's chances at the
polls are bright even the leaders of the United Front and Congress
seem to admit. How far and by what margin it will succeed in
achieving its objective it will not take long to reveal.
New Delhi has made it known to the international community that it
would not let the people of the state exercise their right of self-
determination in defiance of its own commitment to the United
Nations in the face of the untold sufferings of the people in terms
of the physical insecurity and economic deprivation. The communal
carnage had imperilled their constitutionally guaranteed rights to
life and property throwing their legal sanctity to the winds. For
the victims of the tragedy that keeps on repeating itself at
periodic intervals, the courts can provide no remedy even if they
desire to do so. We have no system of collective fines or collective
punishment to which only an alien government could resort when
pressed by the gravity of the situation it was unable to control
through normal procedures and practices of law. Now that the power
conscious majority takes law into its own hands the administrative
machinery and the judicial authorities retire from the scene.
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980218
--------------------------------------------------------------------
Unlikely comradeship
--------------------------------------------------------------------
M.H. Askari
IT is difficult to visualise any two other parties more unlike each
other than the Chinese Communist Party and the Pakistan Muslim
League (Nawaz group), with virtually having nothing in common as
regards their composition, constitution, leadership style or
political strategy.
Yet, during the prime minister's visit to Beijing there were reports
of the two parties having decided to "to learn from each other's
experiences through the exchange of party workers." The arrangement
was negotiated from the Pakistani side by the former bureaucrat,
Sartaj Aziz, now the PML's secretary-general, and Shaikh Rashid
Ahmad. The Chinese side was represented by the chief of the
Communist Party's international division, Dai Binguo, and his
deputy.
What the average Chinese Communist Party worker, who spends a great
deal of his time in doing party work at grass roots level before
being assigned any position of responsibility, can possibly learn
from a Muslim League worker, who tends to regard himself a
privileged person merely because he generally occupies a prominent
position in the reception line on the eve of prime minister's
arrival and departure in a party constituency, is difficult to
understand.
Quite incredibly, Mr Sartaj Aziz, at the end of his discussions with
Dai Binguo, reportedly said: "They (the Chinese party workers) will
learn from our experience of working in a multiparty system and we
will benefit from their training methods for producing disciplined
party workers." Surely, the PML secretary-general is aware that
there is not even the semblance of a multiparty system that can
function under a Communist setup and that the so-called Muslim
League worker in Pakistan enjoys the position that he does largely
because of his connections with the feudal or baradari system.
In Pakistan there is a tendency among the political party workers
belonging to the rural areas to try to get into urban centres, as
close as possible to the wielders of state authority. In China,
particularly as a result of the cultural revolution launched by
Chairman Mao in 1969-70, party workers are supposed to concentrate
on the rural areas and involve themselves with party organizational
work there. In 1971, when the eminent China specialist, Edgar Snow,
returned to Beijing, he found that about 80 per cent of the party
cadres from the capital had been sent to rural centres known as 'May
Seventh schools' described by Snow as "reform schools for
reformers", where the inmates were required to integrate themselves
with the masses and learn from the peasants and workers.
As was explained to Snow by the Communist Party leaders, party
cadres had been extensively purged with the onset of the cultural
revolution and they were sent down to the rural areas to go through
a process of "struggle-criticism-transformation" before being
reabsorbed into the cadres at the grass roots level. Even senior-
level Muslim League workers in Pakistan regard serving their rural
constituencies as something of a punishment.
In the formative phase, in Communist China there was virtually no
distinction between the army (which was to fight on two fronts
against the Kuomintang and against Japan), and the party cadres. It
was even difficult to make a distinction between a party office-
bearer and a soldier and Mao continued to treat the army as "the
great training school" for the people. In Pakistan, no political
party has been able to treat the army in a similar fashion. The army
has always been a professional service and is treated as such with
due deference by the political parties office-bearers even at the
highest level.
Founded in 1921, the Chinese Communist Party at its ninth national
Congress in April 1969 adopted a new constitution which
unequivocally declared in its preamble that the party was "the
political party of the proletariat." The Muslim League has never
ceased to be a party of the feudal and baradari elite. Founded in
1906 after a delegation of about 70 prominent Muslims led by the Aga
Khan called on Viceroy Lord Minto in Simla, the Muslim League has
remained something of an elitist party and its main strength has
been the support of the urban middle class. (Maulana Muhammad Ali
even characterized the delegation as "a command performance").
In his study of the growth of the Muslim League between 1937 and
1947 years which were crucial to the establishment of Pakistan
Prof Ian Talbot of the University of Sussex has rightly pointed out
that even though the League after its establishment claimed to
represent the Muslims of the whole of India, in essence until the
end of 1930s, it remained rooted among the Muslim elite of the
United Provinces (now Uttar Pradesh). After the League's dismal
performance in the elections of 1936-37, Muhammad Ali Jinnah had an
uphill task in building it into a national party and his task was
particularly difficult in the provinces which were later to become
part of Pakistan. Talbot attributes this to the Muslim League's
"neglect of the major centres of Muslim population, something that
increasingly became a handicap as the British devolved more powers
to the provinces."
There is no denying that the North-West Frontier Province, which had
a higher percentage of Muslims in its population than any other
province of undivided India, remained a centre of Congress influence
until almost the final months before partition. Although a Muslim
League ministry had been inducted in the province after the
resignation of the Congress ministry, from October 1943 to March
1945, it fared poorly in the 1946 elections. The Congress-Red Shirts
were able to form a government in the NWFP with the 'nationalist'
Muslim, Dr Khan Sahib, as the chief minister. The ministry had to be
dismissed from office by an executive order of Quaid-i-Azam once
Pakistan was established.
The Muslim League also did not have a stable position in Sindh even
though the province was crucial to the demand for Pakistan. The
party was riven with factionalism and its difficulties arose largely
from the lack of unity and discipline in the party leadership in the
province. According to Talbot, the Congress invested much money in
"cultivating the seamier side of Sindhi politics." The Hindu
community's wealth also meant that its political leaders were in a
position to "buy" support in the assembly.
===================================================================
S P O R T S
===================================================================
970802
--------------------------------------------------------------------
Saleh meet Farhan in Asian snooker final
--------------------------------------------------------------------
Ian Fyfe
KARACHI, Feb 14: Saleh Mohammad qualified for the final round of the
Asian Tour Snooker tournament to be played in May at Bangkok,
Thailand, when he upset the reigning Asian champion Anurat Wongjan
(Thailand) 5-4, on the black tie ball, in an absolute thriller
played at the Magnolia Mahal, Beach Luxury Hotel on Saturday
morning.
The Pakistan No. 2, who qualified for the knock-out round although
being overrun by Yasin Merchant (India) 4-0 in his last league
match, knew he had a battle on his hands when he finished second in
his Pool and was drawn to meet Aunrat Wongjan.
But the brave Pathan never flinched against his awesome opponent and
potting in great style won the first frame 88/31, before Wongjan
pulled one back in the next frame to level the scores 1-1 and then
went ahead 2-1, after pocketing the third frame 70/8.
Not to be undone, Saleh with a couple of splendid breaks of 50 and
60, snatched the next two frames and took over the running once
again 3-2, which soon increased to 4-2, just a frame away from
victory.
But the Asian champion fought back tooth and nail. Picking up the
seventh and eighth frames 74/2 and 67/44 he was on level terms once
again at 4-4.
The final frame began in pindrop silence and both cueists began
rather cautiously trying to cash on each other's mistakes.
Saleh managed to break away and was leading 56/43 with just the pink
and black balls to pot. But it was Wongjan who sunk the two coloured
balls and the score was tied 56-56, in the final frame. The black
ball was now to be the decider.
As the two fought desperately for the black, it was Saleh with a
fantastic long shot that potted black and it was all over for the
Asian champion. Saleh winning the frame 63/56 came through a 5-4
winner and was lustily cheered to the echo by the knowledgeable
crowd.
Joining Saleh for the trip to Bangkok was young Farhan Mirza, who
surprised the former world amateur champion Mohammad Yousuf 5-3.
Although Yousuf began confidently with a fine break of 40, it was
Farhan who secured the lead by winning the first frame 62/56. Stung
into action, Yousuf levelled the frame scores 1-1 only to see Farhan
take over the lead again by chalking up 45 points on the trot.
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980219
--------------------------------------------------------------------
Rain-hit Johannesburg Test ends in draw
--------------------------------------------------------------------
Qamar Ahmed
JOHANNESBURG, Feb 18: The first Test between South Africa and
Pakistan came to its inevitable and predictable conclusion as it
ended in a draw because of rain and bad light.
After the fourth day's play was abandoned without a ball being
bowled it was clear then that the game would fizzle out without a
result. That is exactly what happened on the fifth day when the play
somehow got going.
South Africa managed to score 44 runs in 10.3 overs in their second
innings as the match was interrupted three time because of bad light
could, manage. Umpires Cyril Mitchley and Peter decided to finally
call off the farcical Test in which 242 overs were lost because of
poor weather conditions.
Gary Kirsten and Adam Bacher, who had come to o-en their second
innings on the third evening after Pakistan had recovered and
reached 329, had to go back in the dressing room without a ball
faced. Even on the final day as they came in the umpires ruled that
the floodlight under the light sky had not improved the general
playing conditions. When play finally resumed at 11.34 a.m. it
lasted for only 50 minutes more before once again they had to retire
to the pavilion. The openers scored 44 runs in 0.1 overs. Gary
Kirsten and Adam Bacher had then made 20 each. In the delayed start
after lunch only two more balls were bowled and once again the
players had to leave the field because of the insufficient light.
Both Aamir Sohail and Gary Kirsten agreed later after the match was
called off that the ICC has got to rethink about the this new rule
concerning the floodlight used in the Tests. Things are different in
one day games when the white ball is used and the screens are black.
The dismissal of Mohammad Wasim and Inzamam-ul-Haq in the Test when
the light was on was due to floodlight, said Aamir Sohail. They did
not see the ball.
Gary Kirsten also implied that the wicket was not of much help
either as it had a variable bounce from the start of the first day.
It could have been an interesting Test match but for the weather and
floodlight, said Kirsten.
The Pakistan team is now much more confident after having recovered
from the trauma of the mugging incident and also recovering from an
early collapse to compile 329 to South Africa's 364. We did well to
recover with Azhar and Moin Khan playing very important role, said
Aamir Sohail.
Rashid Latif, the Pakistan captain also appeared to talk to the
press before the play was finally called off and reassured the media
that the tour will go ahead and stress and appealed to the media to
concentrate on cricket rather than rumour-mongering. The allegations
against the players by the media that they were not telling the
truth was condemned by the Pakistan captain. We stand by our
original statement that the boys were mugged outside the hotel,
there is no other story to it as implied by a certain section of the
media. We have no reasons to lie. He said.
The disturbing news, however for Rashid Latif is that he may have to
have an operation to his neck which has two displaced discs. Dr Ali
Bacher, the Managing Director of the UCBSA, disclosed that Latif
will go to Bloemfontien with the team but if he feels any discomfort
he may have to come back to Johannesburg on Monday for a
consultation and in case of operation he may have to miss the second
Test as well.
`I may be out for ten days because I am not improving. I will have
to have an operation then,' a disappointed Pakistan captain told the
waiting press. Not much later match referee came with his verdict of
how the match went in and fined Pakistan 60 per cent of the match
fee for bowling nine overs short in the first innings and south
Africa, for bowling four overs short, were fined 20 per cent of the
match fee.
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980217
--------------------------------------------------------------------
Rain-marred Pindi 'Test' ends in draw
--------------------------------------------------------------------
Sports Reporter
ISLAMABAD, Feb 16: Rain marred first unofficial Test between
Pakistan `A' and India `A' ended in a draw here at Rawalpindi
Cricket Stadium on Monday.
Of the four-day fixture only first day's playwas possible.
Intermittent rain, which started at 7.00 am on the second day, left
the outfield flogged with water. Team management of both sides today
were looking forwardto resume match on the fourth and last day as
the MAT office had announced a clear day. However, predictions
turned out to be wrong and thickly overcast sky never faltered in
showers.
Pakistan were all out for 112 in their fresh innings that exposed
the overall weakness in balling department. Pakistan Hit Back to
reduce the touring Indians to 43 for three at the end of the first
days play.
The Indians are scheduled to play their third three-day game at
Rawalpindi Stadium from Feb 19th against the local side.
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