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CONTENTS ===================================================================
NATIONAL NEWS US for talks on Pakistan's security US warns India on Kashmir Islamabad denies conducting N-tests Pakistan regrets G-8's poor response Aslam Beg fears Indian attack on Azad Kashmir Early decision on Kalabagh dam urged Government will renegotiate with 12 IPPs: Khalid Warrant against Benazir withdrawn Child-labour free industrial growth 31 die in Punjab local poll clashes Big power failure hits Karachi --------------------------------- BUSINESS & ECONOMY Industrial output, exports badly affected Pakistan's reservation on WTO declaration State Bank expects 5-5.5pc GDP growth IMF appraisal of tax revenue generation ends Sindh ordinance on farm IT being re-issued Rupee sheds 10 paisa in kerb Provinces asked to provide $7 billion CBR 'minimum wealth tax' scheme gets poor response Registration of new cos falls by 62pc in 5 years KSE index recovers after breaching 1,200 points barrier --------------------------------------- EDITORIALS & FEATURES 'Are the courts functioning?' Ardeshir Cowasjee Enemy today Irfan Husain Entering politics Hafizur Rahman The non-violent bomb! Omar Kureishi ----------- SPORTS Pakistan win World Cup opener Mohsin Khan returns to cricket setup Asian squash event a grim test for Pakistan

US for talks on Pakistan's security
Shaheen Sehbai

WASHINGTON, May 21: The State Department said on Thursday the US was 
looking forward to consultations with Pakistan about its security concerns 
after the Indian nuclear tests.
Spokesman Jamie Rubin told the State Department Press Corps the dates for 
the visit of a Pakistan delegation to Washington headed by the Senate 
Foreign Relations Committee Chairman had not been fixed yet.
The spokesman said the US was thankful that the Pakistanis "have not tested 
any bomb today. We continue to work with the Pakistan government and other 
governments to try to discourage them from testing nuclear weapons."
Rubin said the Pakistani delegation will seek to meet senior state 
department officials and "we look forward to this further opportunity for 
consultations with Pakistan about its security concerns after the Indian 
With regard to Pakistan's discussions with the Chinese, the spokesman said: 
"We have no details on what was discussed. But I can say that the Secretary 
of State, Madeleine Albright had telephone contact with the Chinese Foreign 
Minister and in letters exchanged between the two countries, the Chinese 
share our concerns about the situation in South Asia and have condemned 
Indian tests.
"They would like to avoid spiralling competition of nuclear arms in the 
sub-continent," he said.
White House spokesman Mike McCurry had stated on Wednesday that the US 
would like steps taken by all governments in the region to enhance regional 
security and stability. "And there are a number of ways that can happen and 
a number of ways in which we pursue our diplomacy in coming weeks and 
months, we'll try to make that happen, in light of India's test."

US warns India on Kashmir
Shaheen Sehbai 

WASHINGTON, May 19: The United States on Tuesday implicitly warned India 
not to disturb the status quo on the Line of Control in Kashmir, saying "we 
urge both countries to respect it and refrain from provocative actions."
State department spokesman Jamie Rubin made it a point to himself react to 
the statements of Indian Home Minister L.K. Advani about Azad Kashmir and 
so-called incursions from Pakistan, even without he was asked a question on 
the subject at his briefing.
He told the state department press corps that Advani's remarks urging 
Pakistan to back off on Kashmir "seems to indicate that India is foolishly 
and dangerously increasing tension with its neighbours, and is indifferent 
to world opinion.
"We call upon India to exercise great caution in its statements and actions 
at this particular time when emotions are running high. With regard to 
Kashmir, we urge both sides to respect the Line of Control and refrain from 
provocative actions, including support for militants forces or cross-border 
pursuits of militant forces."
It was the first time that the state department has raised the possibility 
of cross-border incursions by the Indian troops into the Pakistan territory 
on what is normally known as "right of hot pursuit" into enemy territory.
The possibility has been raised after the recent Indian nuclear tests and 
means New Delhi was trying to flex its muscles after getting into a higher 
nuclear orbit.
Mr Advani's statement asking Pakistan to back off was also interpreted in 
other US circles as a sign that, after nuclear tests, India was about to 
take an aggressive and provocative line towards Pakistan.
Asked about reports that China might be considering provision of nuclear 
security guarantees to Pakistan, spokesman Rubin said: "These are rumours 
from journalists and I have not heard any serious analyst proposing that 
China is pursuing this... It has never been discussed in diplomatic 
circles... We are not aware that China is about to extend nuclear umbrella 
to any country."
Mr Rubin said Secretary of state Madeleine Albright was in consultation 
with the Chinese foreign minister and at lower levels. "China and US see 
eye to eye on dangers of allowing nuclear arms competition between India 
and Pakistan and that it may spin out of control."
To the question whether a nuclear umbrella had been sought by Pakistan from 
the US, spokesman Rubin said the issue had not come up from Pakistan 
(during the Talbott mission).
"They are not looking to US or anyone else to solve their security problems 
through some set of arrangements. They are making a decision whether they 
should move from the status of a non-nuclear to a nuclear country. and how 
would impact their status and economy and whether they will end up being 
better of.

Islamabad denies conducting N-tests

ISLAMABAD, May 17: The government had to issue a denial on Sunday afternoon 
after the international media carried a spate of reports that Pakistan had 
finally conducted nuclear tests.
A Foreign Office spokesman described the reports as "motivated rumours."
A large number of foreign media men, however, were making frantic efforts 
to seek a formal reaction from senior officials, including those in the 
Foreign Office.
Interestingly, however, most of the officials were quite unaware of what 
the Cable News Network(CNN) and the BBC had been showing or reporting since 
The rumour that Pakistan had responded to Indian nuclear tests was broken 
by both the CNN and the BBC during a live telecast of the G-8 summit in 
Birmingham. The correspondents there quoted the Germans as saying that they 
had been informed through their channels that Islamabad had conducted 
nuclear tests.
"There is nothing of this kind that I can confirm," Rai Riaz, Prime 
Minister Nawaz Sharif's Press Secretary told  Dawn when contacted. Other 
officials, too, were rather surprised at the news and insisted that they 
had no knowledge of it.
Sources in Islamabad also contradicted news items and reports that the 
prime minister would hold a news conference or address the nation on the 
issue. "There is absolutely no such schedule of the prime minister," an 
aide to him said.
The prime minister, who was in Lahore on Sunday, was reported to have 
spoken to top media officials here about the CNN and BBC reports.

Pakistan regrets G-8's poor response
Raja Zulfikar

ISLAMABAD, May 18: US President Bill Clinton and British Prime Minister 
Tony Blair on Monday telephoned Prime Minister Nawaz Sharif who conveyed 
his deep disappointment to both leaders on the poor response to India's 
nuclear testing, at the G-8 meeting.
Officials in Islamabad said Mr Clinton and Mr Blair contacted Mr Sharif on 
Monday evening and talked about G-8 summit's deliberations on the situation 
arising from the Indian nuclear tests.
In a formal reaction, the government said: "While appreciating the close 
consultations between Pakistan, the United States and Britain on such a 
vital issue, Prime Minister Nawaz Sharif expressed deep disappointment at 
the final statement which had emerged from the summit."
Both the US president and the British prime minister informed Mr Sharif 
that this serious development was given full consideration by the G-8 
countries. This was reflected in the final statement issued at the end of 
the summit, which called for strengthening the global non-proliferation 
regime and enhancing regional and international peace and security.
According to an official reaction, both the leaders told Prime Minister 
Sharif that as friends they understood the difficult situation that 
Pakistan had been placed in. They appreciated the responsible approach of 
Pakistan while at the same time urging a continued policy of restraint. 
They acknowledged that Pakistan reserved the sovereign right to take any 
decision that it considered necessary.
Mr Sharif, according to the formal comment issued after the telephonic talk 
among the three leaders, said the failure of the great powers to condemn 
India and apply across-the-board sanctions would send wrong signals to 
India. "In fact, it may act as an encouragement. Under these circumstances, 
for G-8 to ask Pakistan to exercise restraint was misdirected as it 
demonstrated insensitivity to a critical situation that threatened our very 
existence," the prime minister said.
In his response to the telephonic talk, Mr Sharif emphasised the need for 
the international community to be more forthright in bringing home to India 
the consequences of its rash action which had placed into grave jeopardy 
not only peace and security in the region, but also of the whole world.
The prime minister, officials said, told the two leaders that the very 
essence of the non-proliferation regime had been destroyed by India's 
blatant action.
The prime minister, they said, conveyed a sense of outrage of the people of 
Pakistan and explained that while he would not act in haste, his actions 
would be in consonance with the best interest of Pakistan's sovereignty and 
He thanked both President Clinton and Prime Minister Blair for this 
personal exchange of ideas on an issue which was of vital importance to the 
security of Pakistan.
Nasir Malick adds from London: President Clinton and Prime Minister Blair 
talked to Prime Minister Sharif for over 30-minutes at the end of one-day 
US and European Union summit here.
The two leaders reportedly requested Mr Sharif not to go for the nuclear 
test as it would trigger a new arms race in the South Asian region.
Diplomatic sources said they assured Mr Sharif that security of Pakistan 
would be fully guarded if Pakistan restrained itself and did not conduct a 
nuclear test.
Sources said the Mr Clinton reiterated his offer to withdraw the Pressler 
Amendment that barred any military aid to Pakistan and also offered to 
release F16 military warplanes, the payments for which have already been 
made by Pakistan to America.
Aslam Beg fears Indian attack on Azad Kashmir

KARACHI, May 17: Former army chief and head of the Awami Qiadat Party, Gen 
(retd) Mirza Aslam Beg, said on Sunday he feared that the Vajpayee 
government would attack Azad Kashmir to fulfil its election manifesto and 
urged the government to take "pre-emptive measures" to liberate occupied 
"The BJP had threatened to exercise nuclear option and to 'liberate' Azad 
Jammu and Kashmir during the run-up to the elections. It has fulfilled one 
of the promises by exploding five devices and I fear that it will soon 
launch an attack on AJK," said the former chief of army staff.
Advocating the use of the first strike strategy to scuttle the mounting 
pressure of Indian militarism, he said "the need of the hour is that we 
should act first and the armed forces of Pakistan should be given the task 
of liberating occupied Jammu and Kashmir, where the Indians have killed 
thousands of people and the world community has not reacted in an 
appropriate manner."
The AQP chief was of the view that the government should have responded 
immediately, but now that it had delayed retaliatory measure, the matter 
must be evaluated from all angles and all political parties and the nation 
should be taken into confidence.
He said the government was taken by surprise and hence it was a serious 
lapse on the part of agencies assigned the task of monitoring such 
He said he would not buy the United States explanation that it had been 
caught unawares by the Indian tests.
He said Pakistan had the necessary capability and the government must 
analyze world reaction and impact of sanctions against India.
The AQP chief, who was taken to the Quaid's mazar at the head of a big 
procession from the airport, added that if the government lacked the 
courage to take an important and bold decision, the people themselves would 
decide the future course of action.

Early decision on Kalabagh dam urged
By Our Correspondent

ISLAMABAD, May 16: Engr Shahnawaz Khan, ex-chairman, Water & Power 
Development Authority, on Saturday urged the Government to take an early 
decision on the construction of Kalabagh Dam (KB) because unless new 
storage facilities on Indus or its tributaries are created the food and 
cereal shortages are bound to get worse after 2000.
He was making a presentation at a seminar organised by the Society for 
Citizens� Rights to provide a forum to technical experts for discussion on 
the pros and cons of the project.  
Shahnawaz was one of the three members of the panel which had reported to 
the Government that KB, as presented in the draft Project Planning Report 
(PPR), was �technically feasible and economically  viable.� Incidentally, 
the two other panel members were present in the Seminar. One of them was 
Manzoor Ahmed Sheikh, an ex Federal Secretary, who opposed the construction 
of KB in today�s seminar.
Responding to the suggestion that the Government should drop KB and start 
construction of Bhasha Dam, Shahnawaz said the 9th Plan envisaged 
commencement of work on KB and studies for undertaking a second dam. The 
first priority, he argued, �goes to Kalabagh Dam as its construction can be 
taken in hand within a short period of time with necessary modifications in 
its design incorporating the lowering of the maximum retention level from 
the original level of 925 feet to 910 feet.�
Earlier, Air Marshal (retired) M. Asghar Khan, president, Tehrik-i-
Istiqlal, who was in chair, said that so far the important subject of KB 
had been complicated by the  politicians. 
The discussion lasting several hours was far from apolitical although the 
political stance of opponents of KB was supported with statistics and for 
that reason remained one-sided for the most part. A couple of speakers said 
that KB would benefit only Punjab through diversion of water for irrigating 
Thar and Cholistan as well as the siting of KB powerhouse in that province.
Shahnawaz, however, pointed out that under the 1991 Water Accord no 
province could get more than what its due.
As regards the second charge, Dr Riaz Ahmed, a consultant engineer, said 
the question of location of power house would also bedevil the Bhasha Dam 
project, because already the Northern Areas were apprehensive that NWFP 
might contrive to have it located in its jurisdiction.
Khwaja Tariq, an ex Income Tax Officer, argued that the dam instead of 
being treated as national assets was made the subject of controversy as a 
result of the provision for the first time made in 1973 Constitution 
declaring that the revenues from power would belong to the province where a 
powerhouse of hydro-electric project was situated. Instead, he and some 
other participants stressed that the Constitution should be amended to 
provide for payment of profits to the province where a dam is situated.
WAPDA came in for sharp criticism by several speakers for its inept 
handling of KB issue.
Engr Asghar Ali Abidi, who was the third member of the panel that had 
declared KB feasible told this correspondent that modifications carried out 
in the KB design would ensure that the backwater effect of KB does not 
increase the damage of a flood of the level of 1929.
Earlier, Engr Manzoor Ahmed, opening the discussion, argued that the KB was 
not feasible because there was not enough water in the system to justify 
it. He was of the view, aired also by Engr Mahtab Yusufzai that the 
Government should go in for Bhasha Dam because it did not involve 
withdrawal of water. The power to be generated by it would be 25 to 
30% more than that envisaged by KB, would cost far less than the 
expenditure involved in construction of KB, and go a long way towards 
solving the problem of sedimentation of Tarbela.
Mahtab Yusufzai also suggested that till the time it is ready to start work 
on Bhasha Dam, the Government should raise the level of Mangla and Tarbela 
Dams by another 5 feet which was provided for in their designs.

Government will renegotiate with 12 IPPs: Khalid

ISLAMABAD, May 20: Minister for Law and Justice Khalid Anwar has said the 
government has decided to "re-negotiate" the issue of power tariffs with 
the remaining 12 Independent Power Producers (IPPs), some of whose 
agreements are likely to be cancelled owning to alleged gross 
"We are about to re-negotiate the issue of power tariffs with 12 IPPs, 
other than those 9 IPPs which have already decided to reduce their power 
tariffs", he further stated.
He told Dawn that the government planned to once again ask the remaining 12 
IPPs to reduce their electricity tariffs. He said that successful talks 
earlier held with 9 IPPs could become a basis for asking the 
representatives of these remaining 12 IPPs to also lower their tariffs.
Answering a question, he, however, did not rule out the possibility of 
cancelling the power projects of some of the IPPs due to alleged gross 
irregularities and the incidents of kickbacks and commissions offered to 
previous rulers.
"The power projects of some of the IPPs would have to be cancelled because 
of their involvement in offering bribe for getting their projects 
installed", Khalid Anwar claimed.
"But let me assure you that no arbitrary action will be taken against 
them", said the Minister for Law and Justice.
Answering a question, Khalid Anwar said that no representatives of the IPPs 
has been harassed to lower power tariffs. "Those who agreed to revise 
downward their power rates, have been thoroughly convinced to do so and 
they were not all intimidated", he added.
Talking about his recent meeting with four Ambassadors including Japan and 
Britain, the Law Minister said he had held a very fruitful session with 
them. He said the meeting was held in a very cordial manner and it was not 
correct that they took a hard line against Pakistan and threatened to stop 
their aid in case IPPs were continued to be chased.
"I had explained to them the point of view of the government and they all 
appreciated it", he said. However, Khalid Anwar pointed out that all the 
four Ambassadors gave their side of the story and called for resolving the 
issue amicably. "But they never expressed their indignation as was reported 
in the section of the press", the Law Minister said adding that the 
government was not having any pressure from the member of the Pakistan 
Development Forum (PDF), previously known as Aid to Pakistan Consortium 
over the issue.
Warrant against Benazir withdrawn

KARACHI, May 21: Withdrawing the non-bailable warrant of arrest against 
Benazir Bhutto on Thursday, the Sindh High Court Ehtesab Bench has directed 
the PPP chief to furnish a fresh surety bond and a personal bond, each one 
in the sum of Rs10 million, within a week. She was also asked to deposit 
her passport with the registrar within two days.
The counsel for Benazir Bhutto, Mian Raza Rabbani, had, earlier, requested 
to the court to withdraw non-bailable warrant for the arrest of his client. 
Special prosecutor Mubarak Hussain Siddiqui had no objection. Because 
sufficient cause had been shown for her non-appearance on Wednesday, the 
judge allowed the application filed on behalf of the accused. The court 
accepted an explanation given by K. M. Nadeem, counsel for Ms Bhutto's 
surety, Mr Munawar Suhrawardy, over forfeiture of his bond as he had failed 
to produce her on an earlier date of hearing.
He said he was still prepared to act as surety and undertake to ensure her 
production on all dates of hearings. K. M. Nadeem and Raza Rabbani both 
said the court should enhance the surety, earlier fixed at Rs25,000. The 
court did not forfeit the bond and allowed the former prime minister to 
furnish a fresh surety bond. 
Raza Rabbani submitted that the new surety was very heavy in view of the 
fact that her assets had been frozen. The court asked him to produce a copy 
of the freeze order, but he failed to produce any such order. The special 
prosecutor then said Ms Bhutto had surrendered her passport, while all 
other accused had done it in compliance with the May 19 order. Raza Rabbani 
said as Benazir Bhutto's children were living in Dubai, she would be 
needing the passport. The court directed her to first comply with the order 
and said it would hear any request for return of passport later. 
Thursday's hearing was spread over two sessions. At first, Benazir Bhutto 
arrived at 8:30 am, but requested the court to put back the hearing by 
several hours to enable her to shake off the effects of sleeplessness 
following her Hyderabad visit.

Child-labour free industrial growth

LAHORE, May 21: If Pakistan tests a nuclear device it will have devastating 
effects on its foreign trade as this country may not brave the world 
economic sanctions which are most likely to follow the test. 
This was stated by Pharis Harvey, President of US-based Rugmark Foundation 
while talking to newsmen here on Thursday. Harvey, whose organization 
issues certificate to carpet manufacturers world over who prove child 
labour- free production of rugs, was here to participate in a function to 
mark issuance of Rugmark label to two Pakistani concerns for export of rugs 
to US. Referring to India's tests, he said according to his information the 
US was imposing the hardest ever sanctions against a 'friendly country' for 
exploding a nuclear device. 
Earlier, addressing the participants Harvey said it was encouraging to see 
Pakistan realizing the need for industrial growth without the child labour. 
He said due mainly to electronic media campaigns consumers in the advanced 
countries had become very cautious to find about the use of child labour in 
articles they purchased from the developing countries. The Rugmark chief 
said no level of poverty justified the child labour in the production of 
industrial goods.

31 die in Punjab local poll clashes
Mahmood Zaman
LAHORE, May 20: At least 31 people, including two candidates, were killed 
and hundreds injured in clashes which erupted during local council 
elections throughout Punjab on Wednesday.
The elections were termed the bloodiest in the recent history of the 
province. As was expected, the ruling PML swept the polls. The opposition's 
electoral potential was highly marginalized.
According to reports from districts all over the province, about 80 per 
cent of the PML-backed candidates were returned to urban and rural councils 
at all tiers. The PPP was trailing far behind as its candidates' success 
ratio was said to be hardly 10 to 12 per cent. The Jamaat-i-Islami fared 
even worse than the PPP.
Most of the clashes were said to have been caused by disputes over 
anomalous electoral rolls which proved to be a major bone of contention 
between opposing candidates. Old rivalries, particularly political, and 
election enmity are also said to be the cause of clashes.
Reports received here suggest that no district of the province remained 
free from electoral violence.
Big power failure hits Karachi

KARACHI, May 20: Over 12 million Karachiites went through a sleepless night 
and over 2,000 industrial units came to a standstill as the power 
generation and distribution system of Karachi Electric Supply Corporation 
collapsed in the small hours of Wednesday morning with breakdowns that 
continued throughout the day.
The biggest power failure of the year, which occurred at about 3:45am due 
to "transient tripping", multiplied the miseries of the people who were 
already experiencing extensive and prolonged power failures for the last 
one week.
Students, many of them going through exams, spent yet another restless 
night in sizzling heat without electric power to run the fans or to light 
up their lampsthe breakdown badly affecting their studies.
The height of human suffering could be gauged from the fact that the 
mortuaries at Edhi's and the city's hospitals received more bodies to be 
kept in the cold storage than ever before.
Pakistan's largest city and the hub of its business and industrial 
activities, where about 25,000 industrial units operate, quite a few of 
them round the clock, came to a grinding halt due to the power breakdown, 
suffering an estimated production loss of Rs7.5 billion, industry sources 
told this reporter. There was no work in the morning and afternoon shifts 
on Wednesday. The worst hit were the poor daily wage-earners, they said.
The KESC attributed the breakdown to a "transient tripping" of the 220KVA 
Pipri West-to-KDA transmission circuit and Pipri West-to-Bin Qasim 
transmission circuit No. 3 at 3:54am.
In the absence of a "feedback system", the sudden withdrawal of power on 
the circuit which linked KESC with the WAPDA's system simultaneously 
knocked out the units No. 5 & 6 of 210MW each. A few minutes later, the 
units No. 1 and 2 also tripped off.
    But before the major generation unit of the KESC was knocked out, the 
250MVA auto transformer No. 1 and 2 at KDA Scheme No. 22 grid station had 
also tripped at 3:45am owing to over current protection.
All this also had a telling effect on Korangi Thermal Power Station units 
No. 3 and 4 tripped at 5:30am due to overloading.
Owing to the breakdown, the KESC got the excuse of putting all previous 
complaints of power breakdowns, which are generally not attended for days, 
on the hold.
The major power breakdowns have only exposed the weaknesses of the KESC 
system for whose improvement the government has spent billions of rupees. 
Despite the huge input of money, the transmission and distribution system 
has not been improved; rather it has become more unreliable.
The main reason for this unfortunate situation is the rampant corruption in 
which both KESC officers and workers are involved. People are being forced 
to pay inflated bills to cover up for the corruption in which officials and 
the CBA are equally to be blamed.
The corrupt elements have been emboldened by the patronizing attitude of 
the CBA by the federal minister of state for water and power. While KESC 
consumers lament that their complaints were not being attended to for 
several days in a row, the KESC management announced bonus and other perks 
for those who are responsible for the sorry state of affairs at the KESC 
and the sad plight of the consumers who have to bear the brunt of 
employees' corruption. There has been a growing demand that the billing and 
the distributions systems should be privatized to "weed out the corrupt 
Nowhere in the world do the customers get manhandled and roughed up as was 
done by the KESC staff the other day when a harried consumer insisted on 
lodging his complaint and trying to get the electric fault rectified.
Reports from across the city say that most of the faults are actually 
"created by the KESC line staff in collaboration with the CBA and some 
engineers." Had this not been the case, a parallel billing company had not 
been discovered during the raids by the task force constituted by the 
previous managing director of KESC. Those very people who were made OSDs on 
charges of malpractice and corruption have again been given postings in the 
The corrupt KESC staff, backed by the unscrupulous CBAs, not only threatens 
consumers but also the honest officials who do not toe their line, the 
insiders said.
Although the KESC claimed it has brought all its generating units back on 
the bar, there was not let up in plight of the people as previous faults 
remained unattended and no one was responding to register new faults.
A consumer said he failed to understand as to why there was a power 
breakdown every day and voltage fluctuation owing to which thousands of 
consumers have lost their electrical appliances.
People feel enraged when the KESC claims that its system collapsed owing to 
"Kunda system" and advises consumers to show restraint in using 
The Kunda system is thriving with the connivance of the KESC people 
themselves. It is out there in the open where every passerby can see it. 
According to a KESC claim, its losses due to Kunda system have shot up to a 
staggering "40 per cent".
"They should better get rid of the Kunda system and the illegal connections 
that they themselves have provided to the influential people instead of 
advising the consumers to exercise restraint," said a consumer.
Mohammad Rafi, a resident of Block 4, Gulshan-i-Iqbal, lamented that there 
was no electricity in his area for the past three days, and no one paid 
heed to the consumers' repeated complaints. "The government says we can now 
export power. Then why is it that the entire city is suffering from 
shortage of electricity?" he asked.
"How can we be sure that the nation's defence and integrity is good hands 
when we have such a bad and corrupt managers of the basic utilities," 
quizzed another consumer.

Industrial output, exports badly affected

KARACHI, May 20: Industrial production in city was badly affected on 
Wednesday on account of major power breakdown caused by tripping of various 
lines in the early hours of Wednesday.
Industrialists from various areas interviewed by Dawn said the duration of 
power failure ranged between 10 to 14 hours.
However, some industrialists, particularly from SITE area complained of 
voltage fluctuations even during the availability of power resulting in 
damage to sophisticated machines. 'The KESC officials did not attend our 
phone calls, they complained.
The losses accumulated on account of exports and production are in billions 
of rupees and the chairman SITE Association of Industry, Shoaib Munir 
estimated a loss of Rs 1.5 bn in exports for a single day.
He said majority of industries were without electricity on Tuesday night 
but the situation on Wednesday's morning was further compounded due to 
complete power failure.
Though the power was restored at 4.00 pm Wednesday, two shifts from 11.00 
(night) to 7.00 (morning) and similarly 7.00 (morning) to 11.00 (night) in 
SITE area were badly affected.
'Almost 45-50% production came to a standstill when power disrupted for 11 
hours,' he said adding the SITE area comprises of more than 2,200 units in 
which more than 40% are textile export oriented units.
The industrial units in F.B. Area also suffered the same crisis affecting 
work in more than 2,000 units which are basically garment export oriented.
Chairman, F.B. Area Association of Trade and Industry, Muzzamil Hussain 
said the power went out in 4.00 Wednesday morning and came at 12.00 but in 
some adjacent areas the Association members confirmed restoration of power 
at 4.00 and 6.00 in the evening respectively.

Pakistan's reservation on WTO declaration
Muhammad Ilyas

ISLAMABAD, May 21: Pakistan has reserved its position on a United States-
sponsored Declaration on Global Electronic Commerce adopted by the Second 
Ministerial Conference in Geneva on Wednesday envisaging a continuation of 
the existing practice by all member states not to impose customs duties on 
electronic transmissions, according to message received here on Thursday.
Objecting to the content and manner in which it was adopted, Commerce 
Minister Mohammad Ishaq Dar told the conference that it would seek 
independent analysis of the whole issue, particularly on the economic 
implications of the standstill on customs duties. Pakistan reserved the 
right to review its position in the light of these analyses, he stated.
Dar also expressed its doubts regarding the manner in which the issue of 
electronic commerce had been include in the agenda of WTO because no in-
depth studies preceded the adoption of the Declaration. In Pakistan's view, 
he remarked, the procedure of adopting this Declaration did not set a good 
precedent for the inclusion of new issues in the agenda of WTO.
Earlier, the Pakistan chief delegate was also successful through his 
intervention in getting included in the main Declaration of the Ministerial 
Council the acknowledgement that while the multilateral trading system had 
promoted economic growth and employment, more remained to be done to enable 
all the world's people to share fully and equitably in these achievements.
The conference, which commenced on May 18, was originally to pass a 
Ministerial Declaration as a non-contentious document which would primarily 
commemorate the 50th Anniversary of the Multilateral Trading System and 
include procedural decisions on the future work programme of WTO.
State Bank expects 5-5.5pc GDP growth
Mohiuddin Aazim

KARACHI, May 21: The State Bank of Pakistan said on Thursday the economy is 
expected to grow by 5.0-5.5 per cent during fiscal 1997-98 against the 
original target of 6.0 per cent and revised target of 5.5 per cent.
The last SBP quarterly report on the state of the economy released here on 
Thursday estimates 5.00-5.5 per cent growth in GDP against 3.1 per cent in 
1996-97. The report submitted to the parliament covers economic 
developments during the first nine months of the current fiscal yearJuly 
1997 to March 1998. The report says the initial target of growth rate of 6 
per cent for 1997-98 was replaced by 5.5 per cent in undertaking financial 
programme in the context of the arrangement with the IMF.
"The performance of the economy in the first nine months... indicates that 
it has begun to steadily cruise towards recovery in output, moderation in 
inflation and relative stability in the external sector," says the report. 
It says inflation as measured by consumer price index is currently running 
at an annual average rate of well below 9 per cent, which was the target 
for the year. In 1996-97 inflation as measured by CPI stood at 11.8 per 
The report says though a number of macroeconomic indications show "an 
improving trend in the economy" yet there is a need "to continue to take 
wide-ranging and difficult economic policy decisions."
"It is expected that the year may close with a rate of inflation that may 
be lower than the target," says the report. "However, it may be underlined 
that slowdown in inflation on a sustained basis would require continuation 
of tight fiscal and monetary policies, structural reforms in taxation 
system to shift the incidence of taxation from saving to consumption and 
from indirect to direct taxes and larger recovery of loans..."
The report estimates 4.4 per cent growth in large scale manufacturing 
against the target of 6.5 per cent. It says that agricultural growth may, 
however, reach the target of 5.1 per cent even after a one million 
shortfall in targetted production of cotton. Cotton production is estimated 
around 9 million bales against the target of 10 million.
The report does not say whether the industrial sector would achieve the 
growth target of 6.8 per cent. Table 1 of the report which contains 
selected macroeconomic indicators shows that a 7.2 per cent growth target 
was set for manufacturing sector (which should not be confused with large 
scale manufacturing). The report does not say whether this target could be 
met or missed. It, however, estimates that the service sector may grow by 
5.6 per cent against the target of 5.9 per cent set for 1997-98. Also the 
report does not comment on whether the country would achieve the 13.5 per 
cent growth target in savings. In 1996-97, savings had grown by 11.8 per 
The report says there are indications that the overall budget deficit 
target of Rs 148 billion might be attained but it does not hide the fact 
that this would not mean any increase in tax revenues. "The substantial 
fall in CBR (tax) revenues is likely to be met by a sharp rise in non-tax 
revenues, mainly from petroleum surcharge, due to a major decline in world 
oil prices," says the report.
"The decline in world oil prices, instead of being passed on to the users 
in the form of low prices of petroleum products, have been used to meet the 
other revenue shortfall. The windfall gain in revenue from oil surcharge is 
a transient factor which masks structural weakness in public finance."
IMF appraisal of tax revenue generation ends
Ikram Hoti

ISLAMABAD, May 19: The International Monetary Fund completed on Tuesday its 
appraisal of the revenue receipts generation during the first three 
quarters of the financial year 1997-98, with reservations and caution about 
slippages, failure in implementing the value-added mode of taxation, 
preferential treatment of the state sector enterprises, the subsidies and 
sectoral exemptions.
The May 4-19 round of the IMF Appraisal Mission began with scrutiny of the 
revenue collection ledgers and ended with a an advice to the Central Board 
of Revenue to refrain from evasive methods adopted in the implementation of 
commitments made between the fund and Islamabad, for tax reforms.
A review of implementation was conducted on the package chalked out through 
joint efforts of the fund team and the ministry of finance, CBR, ministry 
of commerce and other economic- related organizations' officials, under the 
Extended Fund Facility Programme.
The Appraisal Mission comprised IMF Fiscal Affairs Division officials Jean 
Paul Bodin, Michael Keen and Juan Toro. The last part of the appraisal was 
conducted on accounts and performance on new schemes of income tax 
implemented during the financial year 1997-98.
The fund team members are reported to have found a number of lacunas in the 
implementation procedures of income tax, sales tax and central excise duty, 
while the exemptions to local industries on payment of import/export duties 
were examined in the light of revenue loss incurred during the first three 
Sindh ordinance on farm IT being re-issued

KARACHI, May 19: Sindh government is promulgating again the Sindh 
Agricultural Income Tax (Amendment) Ordinance 1997 in a day or two, Javed 
Ashraf Senior Member of the Provincial Board of Revenue informed Dawn on 
The Ordinance had expired on March 20 but Ashraf said the collection of tax 
from the farmers went on normally though he admitted there was no legal 
cover for last two months.
Officials in Law Department say that since the day the Ordinance lapsed on 
March 20 they had sent four summaries to the Governor for re-promulgation. 
"Probably there was some communication problem between the Governor House 
and Chief Minister House and hence the inordinate delay in re-promulgation 
of the Ordinance", a well placed source in the government confided.
Javed Ashraf, the chief farm tax collector said about Rs 140 million has 
been recovered till end April mainly on income obtained from kharif crops.
*From May 31 next, he said the valuation and assessment of rabi crops will 
begin and hopefully the collectors would begin their recoveries early July.
Sukkur division, the main cotton growing area in the province with 
sugarcane and rice farms and also fruit orchards is reported to given the 
highest amount of over Rs 61 million tax. Farmers in Hyderabad division 
paid Rs 27.3 million, Mirpurkhas over Rs 25 million and Larkana about Rs 13 
The Ordinance lapsed for the third time on March 20 last since the time it 
was promulgated for the first time on May 17, 1997 by the PML (N) and MQM 
coalition government. The current promulgation is fourth in the sequence.
The Sindh budget for 1997-98 fixed a recovery target of Rs 350 million from 
the farmers. Out of this Rs 200 million were to be recovered from kharif 
crops and Rs 100 million from rabi crops. Till end-December last the
recovery of agricultural income tax was too meagre and was less than Rs 60 
In the last Sindh cabinet meeting held on March 30, Advisor on Finance Syed 
Sardar Ahmad is reported to have urged the government to push up tax 
recovery drive from the landed gentry as Pakistan government has no option 
but to comply with the instructions given by the international donors IMF 
and World Bank.
Big feudals in Sindh are averse to pay any tax on their income and have so 
far succeeded in conversion of Agricultural Income Tax Ordinance into a 
permanent law through Sindh Assembly.

Rupee sheds 10 paisa in kerb
By Our Staff Reporter

KARACHI, May 22: The rupee shed 10 paisa to US dollar in the kerb market to 
close at 45.67 and 45.70 for spot buying and selling on Friday against the 
Thursday close of 45.57 and 45.60. This brings the total loss the rupee 
suffered within last three days to 17 paisa. On Tuesday the rupee had 
closed at 45.50 and 45.53 for spot buying and selling in the kerb.
In the inter-bank market the rupee remained firm against the dollar trading 
between 44.05-44.19well within the officially fixed band of 44.05-44.49.
Bankers and currency dealers say the rupee is getting weaker against the 
dollar in the kerb primarily because speculators have rather stopped 
offloading their old stocks.

Provinces asked to provide $7 billion
Sabihuddin Ghausi

KARACHI, May 18: All the four provincial governments have been asked to 
provide over 7 billion dollars (more than Rs 315 billion) in their next 
five annual budgets to finance the second phase of Social Action Programme 
The SAP-2 involves a huge outlay of 10 billion dollars, out of which the 
international donors will only contribute 20 per cent and remaining 80 per 
cent will have to be financed by the federal and four provincial 
Depending more than 90 per cent to finance their annual budgets on receipt 
of funds from Islamabad which is finding difficult to collect taxes, 
planners in provincial governments appear sceptical of implementing SAP-2 
programme in the prescribed period upto 2002.
In SAP-2, the overall donor assistance commitment received so far is of 740 
million dollars. This include International Development Association (IDA) 
support of 250 million dollars while other co-financiers including Asian 
Development Bank, European Union, UK-based Department of International 
Development (DFID) and others will provide 363 million dollars. Additional 
assistance of 127 million dollars is yet to be mobilized.
While donors missions, which keep on visiting Pakistan to review the 
implementation speak high of the results achieved from SAP-1 and have set 
enviable targets for SAP-2, the planners in provincial governments appear 
to be sceptical.
A two-day conference of government officials, NGO representatives, private 
sector leaders and teachers held in Karachi last month to review the 
implementation of primary education component in Sindh was of the view that 
children enrolment in schools could not be achieved, the dropouts of 
students particularly of girls could not be stopped and that teachers were 
not found in large number of schools.
Officials complain that substantial amount of funds are spent on the donors 
review missions that keep on visiting Pakistan frequently and provincial 
governments are billed for their travel and stay.
A final wrap up meeting of SAP-2 is also being held in Islamabad on Tuesday 
in which more than a dozen member delegation is attending.
For next five years Punjab will have to provide 3.82 billion dollars of 
resources, Sindh 1.54 billion dollars, NWFP 1.11 billion dollars, 
Balochistan 529 million dollars and federal government over 1 billion 
The donors also see three potential risks in implementation of the SAP-2. 
They doubt federal government's ability to sustain the level of fiscal 
effort but insist the government to carry through reforms agreed with IMF, 
particularly to increase revenue through improved revenue collections.
Secondly any changes to the fiscal relations compact in federation could 
reduce the capacity of provinces to sustain the SAP. To offset this 
possibility, the NFC award of 1996 protects the SAP projects and provincial 
governments have little choice in drawing their on priorities in 
development budgets.
CBR 'minimum wealth tax' scheme gets poor response
Nasir Jamal

LAHORE, May 18: The Central Board of Revenue (CBR) plan to generate revenue 
through 'advance tax' from owners of constructed or unconstructed land 
having an area of 1000 square yards or more under its 'minimum wealth tax' 
scheme has met an exceedingly poor response.
'Only between 10 per cent to 20 per cent owners of constructed or 
unconstructed land having an area of 1000 square yards or more have so far 
paid the tax in advance in the three income tax zones in Lahore,' a senior 
income tax official told this reporter here on Monday.
The deadline for the payment of the second and last instalment of the 
advance wealth tax expired on Friday.
'The CBR has a complete record of constructed or unconstructed plots of 
land. We will take a stern action against evaders,' said the official.
'Those paying wealth tax on their property in their returns in September 
will be charged a lumpsum amount as fine for the delay. The ones who fail 
to do so even at the time of filing the returns will be made to pay a 
certain amount as fine on the daily basis,' the official said.
The advance wealth tax scheme on constructed and unconstructed property of 
1000 square yards or more was announced in the budget for the current 
fiscal year. Under the scheme, owners of property of this size were 
required to pay wealth tax in advance at a rate of Rs10 per square yard in 
two instalments on November 15 and May 15.
The purpose of the scheme is said to be 'indirect elimination' of exemption 
from the payment of wealth tax on property measuring 1000 square yards or 
more. 'Another objective of the scheme is to raise minimum wealth tax of 
owners of such properties to Rs10,000 if their annual returns are less than 
it,' the official said.
Registration of new cos  falls by 62pc in 5 years
By Muhammad Ilyas

ISLAMABAD, May 16: The number of new companies getting registered with the 
Corporate Law Authority under the Companies Ordinance, 1984, has dropped by 
as much as 62 per cent during the last five years, an informed source told 
Dawn here on Friday.
This tendency away from corporatization, commented experts in the federal 
capital, was because of the different taxation treatment meted out to the 
registered companies as compared to the tens of thousands of small concerns 
owned by individuals/families with arbitrariness in grant of bank loans.
In 1991-92, a total of 3237 new companies were registered by the CLA. Since 
that time, each year has seen their number dwindling. And the number of 
companies registered by the authority was down to 1254 in 1996-97.
One of the factors which have contributed to this state of affairs was that 
the income of registered companies was liable to flat tax rates ranging 
from 33 per cent to 43 per cent compared to a maximum of 20 per cent levied 
on non-corporate sector. This is half the rate payable by the latter.
Moreover, the experts point out, the tax payable by the companies and 
large-sized registered firms, unlike other businesses, is deducted at 
The vast difference in tax treatment to the two sectors has acted as a goad 
for avoiding registration. For once a company is registered, it has to 
submit its accounts audited by chartered accountants to the CLA regularly. 
This state of affairs has postponed indefinitely the objective of 
documentation of the economy, these experts argued.
The presumption in levying lower tax rates on the concerns other than the 
registered ones is that they are small and obtain relatively much lower 
profits. This is not necessarily the reality. There is no dearth of 
concerns carrying on their business by keeping a low profile and yet making 
phenomenal profits. In this regard, the experts point out the case of 
dealers in plastic materials.
These materials are mainly consumed by registered companies, while their 
suppliers are unregistered concerns. The latter force such customers not to 
put their purchases on their record. For these reasons, the registered 
companies find it very difficult to fulfil their raw material requirements, 
according to these experts.
The registered companies complain that even the levy of tax on presumptive 
and estimated basis is discriminatory. This is around 43 per cent on 
corporate sector as against 10 per cent payable by other business 
organizations. What is more, the rate of tax on dividend in the hands of 
non-corporate sector was reduced recently further to 10 per cent. This 
largess was, however, denied to the corporate sector on which the levy is 
20 per cent as before.
The experts, therefore, urged the government to reduce the tax rates for 
the corporate sector to a level more proximate to those for their 
unregistered counterparts with a view to removing a disincentive to 
registration. In this regard, they further contended that due to 
documentation, the tax evasion by the corporate sector was much lower which 
can be further minimized through better vigilance on the part of the tax 
collecting department.
As regards the non-corporate sector, it would defy even the most fertile 
imagination to try to visualise the level of tax loss suffered by the 
In reply to a question, these experts further stressed the need to ensure 
transparency in taxation as well as credit policies of the government in 
order to promote corporatization in such a way as to induce them to share 
their prosperity with the people in general and the workers in particular 
in the long term interests of retrieving the economy from its deep trough 
of recession.
Besides tax treatment, the non-availability of credit to the companies on 
the basis of merit has also been a factor in discouraging development of 
corporatization on healthy lines.
The past ten years or so the decision to sanction or not sanction loans was 
based on political considerations. 
Consequently, the bank provided loans on political cronies and other 
elements without proper surety and on the basis of fake documents. Many of 
such beneficiaries simply disappeared after obtaining losses.
Another result was that genuine business organizations were unable to 
develop according to their potential for want of capital, corporate sector 
stopped growing and the economy became dormant.

KSE index recovers after breaching 1,200 points barrier
By Our Staff Reporter

KARACHI, May 22: The KSE 100-share index on Friday breached the 1,200 
points psychological barrier, the third during the last five sessions, as 
investors indulged in renewed panic selling prompted apparently by Indian 
threats of nuclear war on Kashmir and the unresolved IPP tariff cut issue.
After falling below the resistance level of 1,400 points on Monday, the 
index broke two other barriers of 1,300 and 1,200 during the following 
sessions, a net decline of 220 points over the week or a massive decline of 
Rs 54 billion in market capitalization, a massive single week fall.
Whether or not it falls below its base level of 1,000 points during the 
coming sessions is anybody�s guess but if it happens, as the fundamentals 
indicate, it will signal crash of the market, said a member of the KSE.
"Enough is enough in Kashmir and choose between war or friendship,� a fresh 
warning by an Indian minister seems to have proved a last straw on the 
camel�s back as investors virtually indulged in renewed panic selling, 
sending prices reeling down across the board.
The KSE 100-share index in the early session breached the psychological 
barrier of 1,200 points but later support at the lower level in pivotals 
allowed it to finish at 1,205.82 as compared to 1,250.86 points, a net 
decline of 45.04 points or over Rs 11 billion in market capitalization.
It was feared the market is heading for a virtual collapse if corrective 
steps were not taken by the government or financial institutions did not 
play their due role.
"The T+3 system, which the KSE highups set in motion to curb short-selling, 
seems to have failed to produce the results as is reflected by Friday�s 
steep decline,� said a leading floor broker.
He said the market is victim of external factors, notably fear of an atomic 
war with India and until that threat is removed the performance of the 
market might remain volatile and small investors could be the chief losers.
Dividend announcements from Fauji Fertilizer, Philips and Premier Insurance 
were on the higher side of the market expectations but they came at a time 
when the investors were worried over Indian threats.
There was no trace of the overnight improvement as follow-up support turned 
shy after fresh war threats by the Indian minister.
However, some of the leading shares managed to put on good gains under the 
lead of Dawood Hercules, which posted a fresh good gain of Rs 15 on higher 
Shell Pakistan maintained its recovery trend and finished with an extended 
gain of Rs 5 and so did Al-Ghazi tractors, rising by another Rs 4.
Ghandhara Leasing, Prime Bank, Dadabhoy Insurance, Ashfaq Textiles, 
Balochistan Wheels and some others also rose modestly.
All the leading MNCs suffered fresh declines under the lead of Engro 
Chemicals, Nestle Milkpak, Lever Brothers, Knoll Pharma, Fauji Fertilizer, 
Shell Pakistan (r) and Siemens Pakistan, falling by Rs 5 to Rs 10, biggest 
decline of Rs 15 being in Siemens on selling prompted by news of lower 
Among the local, Fateh Textiles fell by Rs 38.50 for no apparent bearish 
reason, followed by Hub-Power, Adamjee Insurance, PSO, Bank of Punjab and 
Packages, falling by Rs 2 to Rs 7.
Trading volume rose to 97 million shares from the previous 81 million 
shares but losers maintained a strong lead over gainers at 92 to 26 with 39 
shares holding on to the last levels.
Energy shares and most of the MNCs were leading among the losers, owing to 
renewed selling by all and sundry. Bulk of the selling was again confined 
to PTCL and Hub-Power, which came in for renewed heavy selling and fell 
sharply and so did other current actives including ICI Pakistan, Southern 
Electric, MCB, Faysal Bank, FFC-Jordan Fertilizer, Engro Chemical and Fauji 
Hub-Power topped the list of most actives, off Rs 2.50 on 40.294 million 
shares, followed by PTCL, easy Rs 1.20 on 26.918 million shares, ICI 
Pakistan, lower 20 paisa on 5.432 million shares, FFC-Jordan Fertilizer, 
off 40 paisa on 0.664 million shares, and MCB, lower 75 paisa on 0.584 
million shares.
Other actively traded shares were led by KESC, off 80 paisa on 0.411 
million shares, Southern Electric, easy five paisa on 0.304 million shares, 
Sui Southern, down 45 paisa on 0.497 million shares, Sui Northern, 
unchanged on 0.393 million shares, and Engro Chemicals, off Rs 6.50 on 
0.219 million shares.
DEFAULTING COMPANIES: Two shares came in for trading on this counter and 
accounted for 1,500 shares for Colony Textiles and 1,000 shares for Allied 
DIVIDEND: Fauji Fertilizer, final 20 per cent, 40 per cent interim already 
paid, Philips Electric, 25 per cent cash, 10 per cent bonus shares, Premier 
Insurance, cash 22.5 per cent, Central Insurance, cash 60 per cent, and Taj 
Textiles, bonus shares at the rate of 5 per cent.
Back to the top
�Are the courts functioning?�
By Ardeshir Cowasjee

LUCK and circumstance did not afford me the honour of knowing that great 
statesman, that master of English prose, Sir Winston Leonard Spencer 
Churchill. But I did have the pleasure of knowing two of his friends and 
associates who were close to him during the perilous days of World War 2.
The first was Viscount Frederick James Leathers (1883-1965), adviser to the 
ministry of shipping on ports during World War 1, known to my grandfather 
Fakirjee Cowasjee in the 1920s as Fred Leathers, Chairman of William Cory 
and Sons Limited, merchants of the City of London, shipping associates of 
Inchcape�s P&O group and others. Our firm bought shiploads of "Best Welsh� 
and "Durban Blue� coal from Cory�s for bunkering ships of the Royal Navy, 
merchantmen, boilers of the Dumlotee water works, and boilers of the 
machinery used to build the Sukkur Barrage.
By the time I met Leathers, he was Baron Leathers of Purfleet �a man of 
power and influence in the shipping world,� who had been chairman, managing 
director, or a director of some fifty companies related to the shipping 
industry and ports.
His friendship with Churchill dated from the �Wilderness� years, when they 
sat together on several Boards. When Churchill became prime minister, he 
appointed Leathers as his adviser on ports and shipping, and in 1941 as 
minister for war transport. In 1943, Churchill took him to the Casablanca, 
Washington, Quebec and Cairo Conferences convened to fix and coordinate 
Allied strategy which had to be correlated with shipping availability.
Of his friend, Churchill (seldom complimentary) wrote in his History of the 
Second World War: "Leathers was an immense help to me in the conduct of the 
War. It was very rarely that he was unable to accomplish the hard tasks I 
set. Several times, when all staff and departmental processes had failed to 
solve the problems of moving an extra division or transshipping it from 
British to American ships, or of meeting some other need, I made a personal 
appeal to him, and the difficulties seemed to disappear as if by magic.�
The second was Sir Thomas Leslie Rowan (1908-1972). His father, the 
Reverend Thomas Rowan, was the headmaster of the Panchgani School for Boys 
in India. From there young Leslie won scholarships to Tonbridge and Queen�s 
College, Cambridge. Gaining �Firsts� in academics, he captained Cambridge 
in hockey in 1929-30 and England in 1937-38, and again in 1947. A civil 
servant, in 1941 he transferred from the Treasury to the Private Office of 
Prime Minister Churchill, as private secretary later becoming the principal 
private secretary.
After the War he went into industry, rising to be chairman of Vickers in 
1967. I first met him in 1969 whilst in England looking at yards to build 
our ship, the Ohrmazd, the finest ever to have flown the Pakistan flag.
Both men had many anecdotes to tell of Churchill and his emphasis on the 
rule of law, on the vital necessity of law and order. Both recounted the 
story of how at the first War Cabinet meeting Churchill held after becoming 
prime minister on May 10, 1940, he heard each man in turn and after hearing 
their sagas of woe, and how on the home front bombs were falling, fires 
were burning, people were homeless and hungry and lawlessness was feared, 
the first question he asked was "Are the courts functioning?� He was told 
they were working normally, as they always had. "Then all is well,� was his 
Seven years and three months later another great statesman, Mohammad Ali 
Jinnah, when making his first speech to the Constituent Assembly of 
Pakistan stressed the law and order factor. "The first observation that I 
would like to make,� he said, "is that the first duty of a government is to 
maintain law and order so that the life, property and religious beliefs of 
its subjects are fully protected by the State.� For law and order it is 
necessary to have a strong judiciary, fully independent, comprising 
honourable men appointed for their integrity, loyalty and learning, free of 
all pressures from the legislature or the administration.
Little did Jinnah realize that after his death no succeeding government of 
Pakistan would be honest or secure enough to bear with the truth and be 
capable of surviving, or living with, a strong independent judiciary, the 
only organ of state that can ensure that law and order is enforced.
With a few honourable exceptions, the judges of this country have shown a 
remarkable aptitude to bend with the wind, and, as with time the bending 
has become more and more pliable so have moral standards in the country 
decreased to the point where they now are  moribund. Corrupt immoral 
governments have had their way.
The ruling party of the day, the members of which are well aware of their 
guilt and crimes, fearing disqualification under their own laws, in 
November 1997, subverted the judiciary by manipulating an internal revolt 
amongst the judges of our Supreme Court.
Of this revolt, former CJP Sajjad Ali Shah on November 28, 1997 wrote to 
the then President: "This divide amongst the Judges of the Supreme Court 
has been deliberately created by interested quarters. I do not want to make 
any comments on the conduct and attitude motivating such actions, which 
smack of defiance and rebellion and amount to misconduct, calling for 
action by the Supreme Judicial Council for which necessary steps are to be 
If the former CJP did do wrong in the eye of the law, necessitating his 
removal, it should have been constitutionally effected through the Supreme 
Judicial Council. Two wrongs can never make one right, and Sajjad Ali 
Shah�s wrong, if indeed there was one, was surely the lesser.
After Sajjad Ali Shah�s successful removal, the strength of the Court now 
is: CJP Ajmal Mian, retires 30/6/99; Saeeduzzaman Siddiqui, J-1, retires 
30/11/2002; Irshad Hassan Khan, J-2, retires 6/1/2002; Raja Afrasiab Khan, 
J-3, retires 17/9/2000; Mohammed Bashir Khan Jehangiri, J-4, retires 
31/1/2002; Nasir Aslam Zahid, J-5, retires 2/3/2000; Munawar Ahmad Mirza, 
J-6, retires 17/8/2007; Khalilur Rahman Khan, J-7, retires 24/4/2001; 
Shaikh Ejaz Nisar, J-8, retires 14/6/2000; Mamoon Kazi, J-9, retires 
29/12/2000; Abdur Rahman Khan, J-10, retires 5/6/2001; Shaikh Riaz Ahmad, 
J-11, retires 8/3/2003; Mohammad Arif, J-12, retires 9/1/2002; Munir A 
Shaikh, J-13, retires 1/7/2003; Wajihuddin Ahmad, J-14, retires 30/11/ 
J-2, J-5 and J-7 delivered the Quetta judgment of November 28, 1997 against 
their Chief Justice, Sajjad Ali Shah. J-1 and the since retired Justice 
Fazal Ellahi Khan delivered the Peshawar judgment of November 28, 1997 
against their Chief Justice Sajjad Ali Shah. J-14 as CJ of the Sindh High 
Court on November 28, 1997, asked his superior, the CJP to convene a full 
court meeting to resolve their problems.
On December 2, 1997, ten honourable Judges of the Supreme Court of the 
Islamic Republic of Pakistan, J-1, the since retired Fazal Ellahi Khan, J-
2, J-3, J-4, J-5, J-6, J-7, J-8, J-10, J-11, all passed the final order 
dismissing their Chief Justice. J-9 wrote a dissenting judgment on November 
29, 1997 agreeing with the Quetta Bench but saying that the matter should 
have been referred to a full Bench of the Supreme Court comprising "all its 
learned judges.�
Apparently uninvolved in the November 1997 �rebellion�, �revolt� or what-
have-you , are J-12, and J-13, the honourable Judges Mohammad Arif and 
Munir A Shaikh.
If Justice Nasir Aslam Zahid�s Pandora�s Box, which he does not wish to be 
opened, remains shut, and if no such order as the PCO intervenes, CJP Ajmal 
Mian will be succeeded by J-1 Justice Saeeduzzaman Siddiqui who will in 
2002 be succeeded by J-6 Justice Munawar Ahmad Mirza, a worthy Leo, who 
will remain as Chief Justice of the Islamic Republic of Pakistan until 
The November happenings brought to the fore of the nautical mind the Mutiny 
on the HMS Bounty. In 1789, forty-five mutineers, led by Captain William 
Bligh�s protege, Master�s Mate Lieutenant Fletcher Christian, cast adrift 
their Captain and his 18 men and took over the good ship Bounty. Bligh�s 
severity as a commanding officer was cited as the cause of the mutiny, but 
this is disputed. Master Mariner Bligh, braving typhoonic winds and seas, 
made a remarkable 3600 mile open boat voyage, reaching Timor from where he 
set sail for England. An Admiralty Court acquitted Bligh, and in 1814 he 
rose to the rank of Vice Admiral of the Blue. The mutineers remained in the 
South Sea islands, never daring to return to England.

Enemy today
By Irfan Husain

IN a recent issue of Time magazine commemorating Israel�s fiftieth 
anniversary, I came across the following passage that has an eerie 
resonance for many Pakistanis:
"The conflict is rooted in an old and unresolved question of national 
identity: Is Israel a Jewish state, with the emphasis on Jewish, or is it a 
state for Jews, a regular, modern, democratic place where Jews are in the 
majority? Israel�s Zionist founders were almost exclusively secular  in 
many aspects, anti- religious  and they saw Judaism principally as a 
When I started writing this, I typed "most Pakistanis� in the first 
paragraph, but on reflection, I changed it to "many Pakistanis� because I 
fear that the conflict between modernism and blind dogma is over. To all 
intents and purposes, the bigots have won. If you doubt the completeness of 
their victory, just think about why a devout Christian like Bishop John 
Joseph committed suicide in public when he knew that he was putting his 
soul in jeopardy.
The only other state in the world created in the name of religion is 
Israel, and even they do not have anything resembling our blasphemy laws. 
Nor, indeed, do they have separate electorates. One Israeli in five is 
Arab, and Muslims and Christians vote with Jews. In Pakistan we have 
marginalized our minorities to such an extent that dozens of them are 
languishing in jails across the country, accused of blasphemy which carries 
a mandatory death sentence. Indeed, ever since the law was amended by Zia, 
hundreds of cases have been registered against Christians and Ahmadis.
The peculiarity of this pernicious law is that a couple of Muslims can 
accuse any non-Muslim they don�t like and accuse him of blasphemy against 
the Quran or the Holy Prophet. They do not have to produce any evidence to 
get a conviction. Considering that the crime carries an automatic death 
penalty, one would have expected more stringent requirements for solid 
proof. But in all the cases in which the accused have been found guilty, 
not a shred of evidence has been forthcoming, a fact the Lahore High Court 
took cognizance of when the twelve-year old Iqbal Masih was saved from the 
gallows. The sane judge who freed the young Christian was murdered by 
fanatics not long after his courageous judgment and Iqbal had to find 
sanctuary abroad.
But the one act that has turned our minorities into pariahs is Zia�s 
decision to effectively disenfranchise non-Muslims. By refusing to allow 
them to vote for local candidates, the state has snatched away whatever 
power and influence they had from Ahmadis, Christians, Hindus and Parsis 
who form perhaps ten per cent of the population. Now, Hindu girls are 
abducted with impunity in rural Sindh by local waderas, and their families 
have nobody to turn to. Illiterate Christian boys can be thrown into jail 
for trumped-up blasphemy charges, and the event does not even make the 
national press. And scores of Ahmadis have been jailed simply for uttering 
the greeting "Assalam-o- Alaikum,� or for printing the kalima on wedding 
It was to rouse us and make us aware of what is happening around us that 
Bishop John Joseph put a gun to his head and pulled the trigger. A 
compassionate, caring man, he felt he could no longer perform his duty of 
safeguarding his flock under the blasphemy laws that are so patently loaded 
against the weakest section of our society. At a recent demo in Karachi to 
protest against these laws, hundreds of mostly Christian men and women 
turned up at Regal Chowk under a scorching sun. But at the end of the day, 
we remain apathetic and callous to their plight.
One of the biggest problems with secularism in Pakistan is that the word 
has been mistranslated into Urdu as "la-diniat� which roughly means 
"irreligiousness.� But basically, it is nothing more or less than the 
separation of the state from religion, and has been very successful in 
multi-cultural societies where many faiths coexist without tension. But in 
countries with a dominant, state-supported religion, other citizens with 
different beliefs are threatened and marginalized, and their rights 
When we insist that Kashmiris should have the right of self- determination 
(i.e., choose between India and Pakistan), we do so because we are 
confident that given the choice, the Muslim majority would opt for 
Pakistan. But what would happen to the millions of Hindus and Buddhists who 
inhabit the state as well? The world has seen how we mistreat our 
minorities, and it is very unlikely that it will support us in acquiring 
millions more to kick around.
Over the years, we have convinced ourselves that the whole world is against 
us. From this paranoid perspective, everything from a defeat in hockey to 
sanctions on Kahuta is ascribed to foreigners ganging up against us. But we 
fail to see ourselves through the eyes of outsiders who view us as a 
country that triggered a bloodbath and then a secession in its eastern 
wing; a country with frequent and brutal bouts of martial law; a country 
that hanged its elected prime minister on patently trumped-up charges; a 
country that supports stone-age elements like the Taliban. And above all, a 
country that subjects its women and its minorities to the most vicious 
discrimination with the sanction of the law.
Indeed, the only news that reaches foreign readers and viewers about 
Pakistan is about ethnic violence in Karachi or sectarian killings in 
Punjab. Then there are stories about Pakistani drug smugglers or about 
corruption in high places. Small wonder that the world sees us a 
particularly nasty place. We may not agree with this assessment, but at 
least we can see why it is so widely held.
What we have to fear is not the Indian bomb, but the enemy within. It is 
not Indian aggression that is as much of a threat as our own intolerance. 
There was a window of opportunity for halting this tide of bigotry after 
Zia�s death, but Benazir Bhutto did not even attempt to take on the 
reactionary lobby, and now seeks their support in staging a comeback. For 
me this failure outweighs all the corruption charges laid at her door. 
Nawaz Sharif, under his father�s influence, does not even consider 
intolerance to be a threat.
Given these attitudes, as well as our cowardice in failing to confront the 
true enemy in our midst, I fear poor Bishop John Joseph may have sacrificed 
his life in vain.

Entering politics 
Hafizur Rahman

WE are quick to question the propriety of an otherwise qualified man being 
appointed as a public servant by administrative fiat or personal selection 
by the powers-that-be. (Prime Minister Nawaz Sharif is doing it every day, 
and it's the regular procedure in the United States). 
But nobody is surprised or indignant when a patently unqualified person 
becomes a legislator and the arbiter of the people's destiny through the 
short cut of elections.
We have many distinctions that entitle us entry into the Guinness Book of 
World Records, only if Mr Guinness would pay some attention to this part of 
the globe. But I have no intention to recount these distinctions. My 
purpose today is to point out just one fact that relates to politics.
Pakistan must be the only country in the world where people with 
privileges, derived from family or other connections, can join politics at 
the top level and don't have to slog for recognition in humble positions, 
or start at the bottom as mohalla politicians or ordinary party workers.
Sportsmen like Sarfraz Nawaz and Imran Khan or socialites like Ms Tehmina 
Durrani or retired military officers like General Mirza Aslam Beg simply 
announce that, with effect from such-and- such date, they have joined 
politics for the sake of the people's welfare. But the word "politician" is 
not considered enough for them. Newspapers at once start referring to them 
as "eminent leaders of this or that party" even though they may have no one 
to lead.
I once had the edifying experience of launching a friendly though firebrand 
maulvi as chairman and convener of his own "Islamic Socialist Inquilabi 
Party" in Islamabad, but the ship sank soon after sliding into the sea, 
without even the compensation of fame of  The Titanic but like an unknown 
tramp steamer. This was some twelve years ago. Any misconceptions that I 
harboured at that time about entering politics after retirement from 
government service, also foundered along with maulvi sahib's party. As was 
the case with the three "eminent political leaders" named above, and 
numerous others like them, maulvi sahib was averse to joining any one of 
the existing 72 political parties (like the proverbial 72 sects that we 
have created in Islam) or one of the many religious parties, at the humble 
level of a new entrant and avowed worker. He had wanted to be known as a 
leader, and might have become one if he hadn't made the grave mistake of 
selecting me as his PRO.
You must have noticed that the facility of entering politics from the top 
of the ladder is not available to Majhas and Gamas, the Pakistani 
equivalents of Tom, Dick and Harry. Poor fellows! They still have to become 
members of ward or mohalla units of their favourite political party and go 
up slowly through silent and unselfish service, maybe making a start by 
raising slogans at the public meetings of one of the privileged lateral 
entrants. The latter rarely leave any room at the top for those labouring 
day and night to reach it.
These lateral entrants who smuggle themselves edgeways into the political 
game usually belong to elite families and are known more for their social 
connections than any pronounced penchant for politics or for holding 
certain definite views on how the country should be run. A feudal, whether 
landed or industrial (or commercial), who is in politics must have his son 
there also to replace him when ultimately he decides to call it a day.
If there are two sons, they'll be made to align themselves with two 
different parties, so that there is no feeling of deprivation if one is in 
power and the other is in the woods. A well-known landed-industrial family 
from the Frontier probably holds the record for this kind of judicious 
placement of sons, for at one time it had its boys (and even a mother) in 
five political parties. Many of the boys later became governors or chief 
ministers or federal ministers. None of them had ever raised a slogan in a 
public meeting.
Again, Pakistan is probably the only country in the world where anyone can 
join any political party at any time without as much as a by-your-leave. 
Your views may be entirely contrary to a party's manifesto. In the past you 
may have done your damnedest to revile or harm that party. You may be a 
self-confessed non- believer in democracy and party politics. You may have 
caused irredeemable loss to your country. You may be corrupt to the 
fingertips, or a lecher and debauch, or a drug pusher, or even a practising 
dacoit and murderer  none of these is considered a handicap.
You merely announce, usually at a "crowded" press conference, that you have 
decided to join Party X, and no one in Party X will ask any questions, 
because political parties are waiting in the slips all the time to make a 
catch. There will be no formality of filling up a form, or a routine action 
on the part of the relevant committee in Party X to accept your membership. 
Just declare your decision, and, lo and behold! You are a leader in Party 
X. It's as simple as that.
No wonder we have all sorts of Toms, Dicks and Harrys, as well as Mrs Toms, 
Mrs Dicks and Mrs Harrys falling over one another to get into a popular and 
even a not-so-popular party. Though top priority is of course given to the 
party in power or one of its allies. As if that were not enough, the new 
entrants are also granted party tickets to fight elections to the 
If they are lucky and rich enough to get elected, we have the phenomenon of 
political nobodies being catapulted into the National Assembly or a 
provincial assembly, or even the Senate, and rubbing shoulders with such 
veterans and self-made politicians as Mr Wali Khan, Nawabzada Nasrullah 
Khan and Malik Meraj Khalid. Then will simultaneously start the process of 
making up the lakhs spent on electioneering.
In the early days of the United States the slogan for the country's youth 
used to be, "Go West, young man!" Here, in Pakistan, carefree youths 
rolling in the family millions, with no academic degrees to their names, 
and for want of anything better to do, may well be advised to join politics 
and fight an election.

The non-violent bomb!
Omar Kureishi

IT is entirely possible that the views expressed in this column may be 
overtaken by events and thus be rendered as no longer being relevant. So be 
it. There is a consensus that Pakistan must respond in some way to India's 
nuclear adventure.
The temptation to go for a tit-for-fat is irresistible. But a decision 
taken in the heat of the moment could have long-terms repercussions that 
may carry a price-tag we may not be able to afford. Our response, 
therefore, should not be knee-jerk but should be a measured one. In other 
words let the head prevail over the heart.
There is, in this point of time, widespread condemnation of India and many 
countries, including the United States and Japan have imposed sanctions. 
The BJP Government says that it factored this possibility when it carried 
out its nuclear tests. I am not entirely convinced that India had 
anticipated that there would be such a savage revulsion and India's 
reaction that it does not give a damn for world public opinion is whistling 
in the dark. But we must also be mindful that world opinion is perishable 
and is easily distracted.
We should launch a diplomatic offensive to ensure that India is not let off 
the hook. One way to do so would be to demonstrate that we have the 
capability and keep the option open whether to carry out the test 
physically. Not to keep the world guessing but to get maximum mileage out 
of our restraint. I think too that we should do an audit of our friends, 
who our real friends are and who are just fair weather friends.
Our friendship with China has withstood the test of time and it is to China 
we must turn. The Indian Defence Minister has already identified China as 
posing the greatest security threat to India. It is unlikely that he was 
shooting from the hip and his message may have been aimed at the United 
States on the theory that the enemy of my enemy is my friend. He may also 
have had Russia in mind.
At the same time we must accept the reality that we have limited choices 
available and in this harsh world of market-forces, India with a population 
of nearly a billion people is a far better business prospect than Pakistan. 
Which may well explain why Britain and France have chosen not to impose 
One thing we must not do is to get involved in an arms race for that would 
be falling in India's trap. It is possible that India has calculated that 
we will respond emotionally. We must not do so. The fact that India has 
tested its nuclear bombs does not alter the military balance. India went 
nuclear in 1974. So we have known that India had the capability if not the 
India too knows that we have the capability and a balance of terror already 
exists. Unless there is a mad man who has his finger on the nuclear button, 
the possibility that nuclear weapons will actually be used is extremely 
remote. By formally joining the nuclear club India has cheated its own 
There may have been jubilation in India after the tests were carried out 
but surely India's poor have little reason to cheer. Although we too are a 
poor country, India's poverty is measureless and in the fifty years of 
independence, it has got worse not better. Any one who visits India will be 
overwhelmed by the wretchedness of the country's poverty. It is something 
that cannot be concealed.
You have only to step out of the grandeur of a five-star hotel to see the 
state of India's tryst with destiny. You will not just confront hordes of 
beggars but you will be ambushed by them. The quality of this poverty, if 
such a phrase can be used, is so vile, so miserable that you wonder whether 
these people are human at all. I write about not India's rural population 
but about cities like Bombay and Calcutta.
When I went to Calcutta for the opening ceremony of the 1996 cricket World 
Cup, Calcutta had undergone some face-lifting. The first thing they did was 
to remove all the beggars from outside their main hotels. I asked my hosts 
what they had done with the beggars and jokingly inquired whether they had 
been sent to a gas-chamber. Worse than that I was told. They had just been 
forcibly removed to other areas and once the World Cup was finished, they 
would be allowed to return, if they were still alive by then.
I had considered this to be not only deceitful but cruel in the extreme. 
India has never shown its real face to the world for the real face is ugly 
and soul-destroying. It is these poor who have paid for India's nuclear 
Pakistan must not allow itself to be hassled. This is the time for level-
headed calculations and we must devise a strategy to leave no doubt in 
India's mind of our resolve and capacity to defend ourselves without having 
to pay the exorbitant social price. The Indians may find that the cost of 
becoming a major military power may be as high as what the Soviet Union 
found, not merely beyond their means but leading to the Soviet Union itself 
The BJP may well have saved their tottering coalition but it is a short-
term gain. Once the euphoria has evaporated, there will remain the reality 
of India, the reality of the bullock-cart. For us this is the time for 
leadership, not rhetoric.

Pakistan win World Cup opener

KARACHI, May 21: Pakistan began the defence of the World Cup hockey on a 
confident note when they thrashed Malaysia 7-2 in Utrecht, the Netherlands, 
on Thursday.
Demonstrating their overall superiority over their qualifier opponents, the 
defending champions gained a commanding 4-0 lead at half-time. They added 
three more goals after resumption in a Pool B match in the 12-nation event.
However, a late fight back by Malaysia earned them two goals which only 
reduced the margin.
Pakistan face England on Saturday who in the last match of the day, 
defeated Atlanta Olympics silver medalists Spain 3-1.

Mohsin Khan returns to cricket setup

KARACHI, May 20: Cricketer-turned-actor Mohsin Hasan Khan makes a return to 
cricket setup when he was appointed camp commandant of the 28 senior team 
players for the forthcoming international commitments.
The camp will begin at the Qadhafi Stadium from May 27 (Saturday). The 
immediate assignments of the cricket team are the tournament in Malaysia 
(between June 26 and July 10) and the four-nation event in Kenya (between 
July 23 and Aug 3).
Mohsin, who was complimented with the honour of Lord of Lord's after his 
double century on the England tour in 1982, played 48 Tests for Pakistan in 
which he scored 2,709 runs at 37.20. He also appeared in 75 limited overs 
internationals for Pakistan in which he scored 1,877 runs at 26.81.
He quit the game after the home series against the West Indies in 1986-87. 
He later tried his luck in Indian and Pakistan film industries which was 
not as successful as his cricket career.
Informed sources said the Pakistan Cricket Board (PCB) authorities were 
seeing Mohsin Khan as Haroon Rasheed potential successor. "It is just the 
beginning. There's still time to decide what role Mohsin Khan has to play 
in future," a cricket board spokesman said.
However, the official, requesting anonymity, admitted that Mohsin Khan will 
either be associated with the senior string or with Pakistan Under-19's 
tour of England. The juniors tour England between July 19 and Sept 5. "Most 
likely he will be associated with the junior team before being elevated to 
the senior team for the Kenya tournament."
The following players have been directed to report to the camp commandant 
at 4:00 p.m. at the Qadhafi Stadium:
Aamir Sohail, Saeed Anwar, Ijaz Ahmad, Inzamamul Haq, Mohammad Wasim, 
Yousuf Yohanna, Moin Khan, Shahid Afridi, Azhar Mahmood, Fazl-i-Akbar, 
Mohammad Husain, Akhtar Sarfaraz, Salim Elahi, Abdul Razzak, Taimur Khan, 
Naeem Ashraf, Shahid Nazir, Bilal Asad, Asif Mahmood, Jaffar Nazir, Farhan 
Adil, Ali Husain Rizvi, Javed Qadeer, Ali Gohar, Azhar Shafiq, Mohammad 
Zahid (pacer), Shabbir Husain and Sarfaraz Ahmad.

Asian squash event a grim test for Pakistan
A. Majid Khan

After South Korea expressed its inability to hold the ninth senior Asian 
Squash Championship in Seoul due to financial constraints, Malaysia offered 
to hold the championship in July this year despite its own difficulties in 
meeting the heavy expenditure involved.
The Malaysian Squash Association has saved the possible cancellation of 
this year's Asian Championship by shouldering the responsibility to hold 
the event in Kuala Lumpur for the third time since the championship started 
in 1981. Previously Kuala Lumpur had twice been the venue in 1986 and 1994.
Pakistan had given the lead in forming the Asian Squash Association and 
staged the 1981 inaugural championship in Karachi and held the 6th 
championship in Peshawar in 1992. Also this country had dominated the Asian 
Squash with Jahangir Khan, Qamar Zaman and Mir Zaman Gul twice winning the 
individual events and Zarak Jahan (once) besides helping in team victory. 
It was in the 1992 Peshawar Asian Championship when Fahim Khan of Hong Kong 
emerged as Asian champions.
Pakistan, however, remained invincible in Peshawar in the team event, 
winning it eight times in a row.
Malaysia, Hong Kong and Singapore always posed threats to Pakistan's 
supremacy at the Asian level in the past. This ascendancy is, however, at 
risk as the present crop of our seasoned players is gradually losing its 
grip and authority with the passage of time.
In the last championship in Amman, Pakistan was closely challenged by Hong 
Kong and Malaysia when team captain Jansher Khan, after playing one or two 
matches, returned home complaining of stomach problem. This left Mir Zaman 
Gul, Jahan brothers (Zubair and Zarak) to fight out the battle.
Mir Zaman Gul survived against Hong Kong's Fahim in a gruelling five-game 
battle before recapturing the title. Both Zarak and Mir Zaman Gul, seasoned 
campaigners, were struggling enough to regain their past form. Within two 
years time they had lost their world ranking. Currently in the latest May 
ranking Mir Zaman Gul is at number 41 and Zarak is ranked 47.

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