------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 26 December 1998 Issue : 04/51 -------------------------------------------------------------------

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CONTENTS ===================================================================
NATIONAL NEWS + Pakistan warns of Russo-India pact threat + More cilvilian tasks for army likely + 3 provinces oppose new police plan for cities + US announces deal on F-16 issue + Poppy elimination by year 2000 looks impossible + News Analysis: Blaming it all on reporters + Economic growth likely to decline next year: IMF + MQM, opposition evolve working relationship + NA passes bill on executive authority of President + Parliament can exempt imports from duty --------------------------------- BUSINESS & ECONOMY + Non-bank borrowing hikes debt servicing + Euro as forex reserves: Final say rests with the govt + Gold prices plunge to 8-month low + Govt to import 650,000 edible oil saplings + Pakistan gets bridge financing of $200m + Punjab to be projected as haven for investment + State Bank composite rates go up + CBR accord with Stamp for tax reforms + SBP allows banks to open Euro accounts + NWFP budget deficit soars to Rs6.5 billion + Stocks sluggish as investors remain on sidelines --------------------------------------- EDITORIALS & FEATURES + Quaid's charismatic leadership Dr Sikander Hayat + The old school Ardeshir Cowasjee ----------- SPORTS + Pakistan lose series as Faisalabad Test abandoned + Indian tour: Pakistan's itinerary being finalised + Squash Promotion Association to launch talent hunt scheme

Pakistan warns of Russo-India pact threat 
Hasan Akhtar

ISLAMABAD, Dec 24: Pakistan on Thursday expressed grave concern and 
dismay on the Indo-Russian military cooperation agreement and 
declared it a direct threat to Pakistan's security.
Foreign Office spokesman Tariq Altaf at the weekly news briefing 
referring to the agreement signed in New Delhi on Dec 21 said it 
"would destroy the balance of power in an already precarious and 
highly volatile security environment" and warned that as result of 
this agreement the bilateral Delhi-Islamabad dialogue process "will 
immeasurably suffer."
He stated that "we are gravely concerned and dismayed that at the 
turn of the millennium when promotion of peace and economic 
development are focus of endeavours in other regions, South Asia 
must bear the burdens of new weaponization for the fulfilment of 
India's hegemonistic goals".
He said South Asia as a region could hardly afford an arms race and 
added the agreement will force Pakistan to appropriately augment 
its defence capabilities by all available means.
The spokesman said the Indian purchases of arms would lead to 
induction of sophisticated new weapon systems in the region such as 
ABMs (anti-ballistic missiles) and airborne early warning systems 
as well as new generation tanks, SU-30 military aircraft, nuclear- 
powered submarines etc, the spokesman claimed.
The spokesman also criticized Russia and said "as a member of the 
P-5 (Permanent members of the Security Council) and the G- 8 (Group 
of 8 developed nations) Russia should have realized its 
responsibility for avoidance of actions which aggravated the 
tenuous security situation in this region where the core dispute of 
Jammu and Kashmir was universally seen as a nuclear flashpoint.
The spokesman called upon the international community, particularly 
the major powers and the United Nations to take note of "this 
dangerous development which threatens the peace and security of the 
Answering questions, the spokesman said that if the Moscow- Delhi 
pact sought to create Indo-Russia alliance, he wondered against 
whom such alliance was intended. He asserted that the pace of 
developments in China would make it the super power in its own 
right in the next century.
Responding to another question, the spokesman said Pakistan had 
offered to the Indian side strategic nuclear stabilization as a 
measure for stability and security at the last round of foreign 
secretaries talks on peace and security. However, the Indian 
foreign secretary put it aside. He said that any Chinese role in 
nuclear strategic stabilization in the region, would be welcomed.

More civilian tasks for army likely
Bureau Report

PESHAWAR, Dec 25: The NWFP chief minister Sardar Mehtab Ahmed Khan 
Abbasi has said that keeping in view the deteriorating performance 
of the nation building institutions, army is likely to be given 
more responsibilities in the near future to put the things in 
He said it was under consideration that several other important 
institutions which are running into losses be placed under the 
control of army.
Talking to newsmen here on Friday, the chief minister said that 
placement of WAPDA under the control of armed forces personnel 
necessitated in view of the Authority's increasing losses, adding 
"corruption and irregularities have totally collapsed several 
nation building institutions, hence their placement under the 
control of army has become need of the hour to put these 
institutions back on track making them effective to serve the 
Supporting the involvement of the army in administrative affairs of 
WAPDA on the part of the federal government, the chief minister 
hoped that a positive change would soon be clearly visible.
"People have lost their faith in government departments, especially 
WAPDA and other similar institutions, so the situation needed a 
prompt action which the federal government has taken in the best 
interest of the nation and country," said Abbasi.
Replying to a question about shifting of 25 cases to special courts 
for quick disposal, the chief minister said the step was 
necessitated to ensure early provision of justice and to put an end 
to the unrest created by criminals who, he added, had nexus with 
To a query about the opposition parties move to forge a larger 
alliance, the chief minister said that "the government has no time 
to give attention to such developments,".
He regarded the alliance as "aimless concern of nationalist 
He was critical about the style of politics of nationalist parties 
observing they had no future after masses had rejected them.
"They are just trying to attract people by getting published 
sensational and baseless stuff in the print media in their attempt 
to keep themselves alive," said Mr Abbasi.
About the reported atta crisis in the province, he termed it a part 
of propaganda launched by the vested interest to get their design 
accomplished by creating panic in the masses. 
He claimed there was no atta shortage in any part of the province 
and that his government was in full control of situation and having 
a close watch at the supply of food items to all parts of the 
He said all those persons who tried to create artificial scarcity 
of atta would be dealt with iron hands and no one would be spared 
irrespective of their affiliations.

3 provinces oppose new police plan for cities 
By Ansar Abbasi

ISLAMABAD, Dec 25: The prime minister has been told that the three 
provinces, Punjab, the NWFP and Balochistan, consulted by the 
centre, have expressed their reluctance to set up metropolitan 
police in any of their major cities, it is learnt.
Reliable sources in the government told Dawn here on Friday that 
the interior ministry, in its report to the prime minister,had said 
that Punjab, the NWFP and Balochistan were not in favour of 
metropolitan police system.
The sources said the report did not contain any response from the 
Sindh government in this regard. The Sindh governor was reportedly 
inclined to try this system in Karachi and had finalized the 
proposed Karachi metropolitan police department ordinance, which 
was now lying with the secretary, interior, who had expressed his 
desire to vet it, claiming that it was a federal subject, the 
sources added.
In the present situation, the sources said, it was totally unclear 
whether the three provinces'negative response would have any 
adverse effect on KMPD. Earlier, following the prime minister's 
instructions, the interior ministry had sought their opinion 
whether they would be ready to introduce the metropolitan police 
system in their cities on an experimental basis.
In their response, the sources said, the three provinces had termed 
the idea unworkable. The Punjab government had said it was not in 
favour of this system as it would give the police unfettered 
powers. It believed that performance of the police could be 
improved manifold if they were recruited on basis of merit and 
given proper training, the sources said.
The NWFP government had told the interior ministry it could not 
experiment the proposed system as majority of people in the 
province was illiterate and the police lacked discipline and were 
corrupt, the sources said.
The province, they said, was also of the view that it did not want 
to give an upper hand to the police either in tribal or in settled 
Balochistan's stand, according to the sources, is that it has 
limited settled area and majority of people there hardly depend on 
the police or law enforcement agencies for the maintenance of 
peace; and that Jirga system is delivering the goods.
The sources said the three provincial governments were apprehensive 
that under the proposed system, the police would totally go out of 
control and their excesses against people would increase.

US announces deal on F-16 issue

WASHINGTON, Dec 22: President Clinton has said the solution of the 
"difficult" F-16 problem agreed between him and Prime Minister 
Nawaz Sharif was "equitable".
In a brief statement released officially by the White House Mr 
Clinton expressed his pleasure and said: "I have long sought an 
equitable solution to this difficult problem and I am pleased that 
Prime Minister Sharif and I have been able to reach agreement."
The official announcement said: "The United States and Pakistan 
have agreed on a legal and diplomatic solution regarding the F-16 
aircraft that Pakistan purchased but which were not delivered due 
to the imposition of sanctions in 1990 under the Pressler 
"Pakistan will withdraw and release its $463.7 million claim in 
connection with the F-16s in return for a payment by the United 
States of $324.6 million from the Judgment Fund of the US Treasury, 
a fund used to settle legal disputes that involve the US 
"Pakistan will also receive a separate payment of about $2.3 
million from the Department of Defence, which is a refund derived 
from a prior sale of some of the equipment associated with the F-
"In addition, the United States will use all available means to 
provide Pakistan with additional goods and benefits up to the value 
of $140 million, including agricultural commodities. In fiscal year 
1999, the United States will provide white wheat valued at about 
$60 million at prevailing market prices. With respect to the 
remaining $80 million, the specific nature of the additional goods 
and benefits, their quantities and delivery schedules will be 
decided by mutual agreement between the two sides."

Poppy elimination by year 2000 looks impossible  
Bureau Report

PESHAWAR, Dec 20: The policy objective of the government of 
Pakistan to bring opium poppy at the zero level in 2000 will be a 
remote possibility, sources said.
"At present it is out of question because of the obvious reasons of 
shortage of funds on the part of the federal government, 
insufficient foreign aid being extended by the donor agencies and 
inaccessibility to the remote parts of the Mohmand and Bajaur 
agencies of the Federally Administered Tribal Areas," a well-placed 
official of one of the concerned departments of the provincial 
government told Dawn here.
Sources in some of the foreign-funded projects for poppy 
elimination in Bajaur and Mohmand agencies and the Dir district of 
the NWFP also came up with similar views.
"Sharply increased opium prices and considerable increase in poppy 
cultivation and yields during the last two years in several parts 
of the Dir district have made the task almost impossible for the 
government of Pakistan which will have to make an extraordinary 
effort to enforce law effectively and to get things under control," 
said a Peshawar-based foreign national of a donor agency 
coordinating with government of Pakistan in its efforts to 
eliminate the menace by the year 2000.
The provincial government official maintained further that it would 
be an achievement if the area under poppy crop was brought down to 
100 or 200 hectares by 2000.
"That will be a tremendous job on the part of the government in a 
situation when the donor agencies are required to raise more funds 
to help Pakistan achieve a mutually beneficial goal," said the 
According to him, though most of the areas, previously under poppy 
crop, in the Bajaur and Mohmand agencies haves been cleared with 
the technical and financial support of the narcotics affairs 
section (NAS) of the USA, there are certain remote areas in the two 
agencies where the crop would continue to be grown by the locals 
unless these, too, are brought under the enforcement zone  the 
part of tribal areas where the writ of the government has been 
Official circles claimed that in 1997 the total poppy crop 
production was brought down to only 30-35 tons compared to 800 tons 
in 1978-79.
Sources in the foreign-funded programmes contradicted the 
provincial government's claim that put the figure of poppy yields 
in 1997 at 85 tons from about 4,100 hectares of poppy which, 
according to a report of the US stat department, is 13.3 per cent 
over and above the 75 ton yields recorded in 1996.
This time round, said the official in reply to a question by Dawn, 
the government had taken more stringent efforts to avoid the crop's 
cultivation in enforced zones of the two agencies and the Dir 
district much before the sowing period.
News Analysis: Blaming it all on reporters
Shaheen Sehbai

PAKISTANI journalists based in Washington have become the specific 
target of key ministers of the Nawaz Sharif government, specially 
during and after the PM's US visit, apparently because they did not 
toe the official line on how the visit was proceeding and what it 
had achieved, or failed to achieve.
The persistent attacks on these journalists, challenging their 
professional competence and credibility and even their patriotism 
have been inexplicable, since they basically militate against the 
claims these key ministers have otherwise been making about the 
outcome of the visit. On the one hand these ministers are claiming 
that the visit was a historic success and on the other they are 
blaming the Washington journalists for its failure.
Since I am a member of the Pakistani press corps here and since I 
had been asking searching questions about whatever the government 
spokesmen had been saying, the ministers' anger was clearly 
directed against me and Dawn in particular, and the others in 
First of all here is a synopsis of what these key players of the US 
visit  the foreign, finance and information ministers  have been 
publicly saying about the Washington-based Pakistani media:
"Pakistani media in Washington has been doing negative reporting 
and it was responsible for the stock market crash on Dec 4.... 
Reporters should help the country in these difficult times instead 
of writing negative reports." (Finance Minister Ishaq Dar, Dawn, 
Dec 7).
"The minister (Ishaq Dar) was strongly critical of the Pakistani 
pressmen in the US who 'deliberately misreported' facts, and did 
not do any national service... In the national interest, they 
should not paint a gloomy picture. Rather they should boost 
national morale. This was not a personal favour... In this context 
he pointed out certain fallacies in the reports fed by them to the 
national press...." (Business Recorder report on Mr Dar's press 
conference in Islamabad on Dec 11).
"Some newspapers have gone overboard while reporting the outcome 
of the Sharif-Clinton meeting and that was why an impression had 
been created that the visit had failed." (Foreign Minister Sartaj 
Aziz speaking at a news conference in Islamabad, Dawn , Dec 14).
"Censuring what he termed 'an inaccurate and irresponsible' 
journalism, the finance minister said the misreporting of facts 
during the last week had played havoc with the stock and currency 
markets of the country...He said it was unfortunate that an English 
daily carried untrue reports of the postponement of the Paris Club 
meeting and other financial issues. Such misleading reports hurt 
the market sentiment and country's interests, Dar said." (Nation, 
Dec 12, based on Mr Dar's news conference in Islamabad).
"I strongly dispel the impression created by national and 
international media that prime minister's US visit was a failure," 
(Information Minister Mushahid Hussain, Nation, Dec 9).
"Everybody who is anybody among the whole lot of PM's opponents, 
has opened fire on the PM for the failure of his American visit. 
The ammunition for the entire campaign has been mainly provided by 
attacking media reports emanating from Washington," (Front page 
report in Nation, headlined: "PM's hopes, results and indigenous 
anger" by Tariq Butt, Dec 9).
These have been some of the public utterances which were duly 
recorded and reported by the media. Privately, Mr Dar has been 
making outrageous threats and statements against me and the media 
in general. He warned me, in front of several other journalists, of 
taking me and my newspaper to the court for causing the crash of 
the Karachi Stock Market, for the failure of the visit and for 
everything that he did not like or did not expect.
The defence of the Washington-based media is simple and clear: We 
were doing our duty, honestly and without any fear or accepting any 
favour from these ministers, whether they liked it or not.
But for a moment, although the charge is preposterous, just for the 
sake of argument, if the claim of these ministers is conceded that 
negative reporting was done by the Washington-based media, the 

question that arises is: "Where were the 29 journalists who were 
brought to Washington at great national expense to do "positive 
reporting" and what were they doing. If they were reporting 
positively, as the government wished, expected and ordered, why 
were they scared of one or two negative reports compared to 29 
positive accounts of the same event. Why was the Stock Exchange not 
listening to these 29 positive reports and crashing just because of 
one negative report?
It appears that these ministers are trying to find a scapegoat to 
put the blame of their failure at someone else's doorstep because 
they do not have the meat in their arguments to justify what they 
have been claiming. They have been forcing the Pakistani 
journalists to highlight irrelevant factors and portray them as 
"signs of success" while actually there are hardly any positive 
signs present.
For example a salute of 21 guns at the Arlington cemetery or a 
guard of honour to the PM at the Pentagon are highlighted as 
signals of great honour bestowed upon the visitor, or signs of 
success of the visit, though in real life these are formalities and 
routine chores which have to be completed on any official, working 
or non-working, visit. They mean nothing other than a normal day's 
work for the hosts.
But on hard core substantive issues, these ministers have no 
arguments to challenge the contents of the messages that the US 
side wanted to send, and which the Washington-based media duly 
reported capturing the spirit and demeanour of these messages and 
their messengers.
For instance, Mr Dar and Mr Aziz have been complaining loudly that 
the reporting in Dawn of the briefing of Karl Inderfurth on Dec 3 
at the White House was "negative" which led to the crash of the 
KSE, yet later when they were told that Mr Inderfurth stood by 
every word of what he had said and even admitted that his demeanour 
was also "not normal" on that day, the foreign minister was at a 
loss for words to explain his remarks.
Mr Aziz simply "dismissed the briefing given to the press by the US 
Assistant Secretary of State, Karl Inderfurth, immediately 
following the Nawaz-Clinton meeting as of no consequence and said 
the state department official had since corrected the impression in 
his latest interview on the Worldnet (Dawn, Dec 14). How can he 
explain why the briefing by Mr Inderfurth was of no consequence, 
just because he thinks so or he says so.
At the same press conference Mr Aziz was told that in the interview 
Mr Inderfurth had given to the Worldnet of USIS, he had not gone 
back on any of his earlier statements and that he had only used a 
more diplomatic language. Listen to his answer: "The foreign 
minister said Pakistan also had not budged from its position on the 
various contentious issues." What does this answer mean? It means 
he is accepting that Mr Inderfurth had stuck to his guns and his 
comments on Dec 3 were correct and that the reporting of those 
comments was also correct. By offering the excuse that Pakistan had 
not budged he is just trying to avoid the question because he has 
no answer. Is it not a case of the foreign minister looking 
desperately to pin the blame on somebody else.
Mr Dar has been fiercely vocal in condemning the Washington-based 
media. He has been accusing the media of mis- reporting but he did 
not cite one single news story which could be described as such. In 
fact, on the day the stock market crashed, he knew that the ratings 
of Pakistan had been down- graded, the IMF had put off its board 
meeting to January (in fact Inderfurth himself broke that news, 
carried by Dawn on Dec 4) and other comments by Inderfurth were not 
very helpful either. So how does he blame the media? If the 29 
positive journalists who came with the PM did not report these 
important developments, do they become professionally more 
competent or more patriotic Pakistanis than those based in the US. 
How did they serve the national interest by not doing their job?
In our verbal sessions with Dar and Aziz in Washington, the issue 
of the huge PM's entourage was repeatedly raised and instead of 
defending the decision of the PM, they always distanced themselves 
from it. In fact, Dar was quoted as saying later in Pakistan that: 
"The PM and the Foreign Office are responsible for the huge 
entourage of 126 members, not me." (Ishaq Dar, NNI, Dec 7).
"I know what you are saying. Please refer these questions to the PM 
or the FM. I had no hand in bringing so many people (to the US). As 
a matter of fact I have come alone on behalf of my ministry, when I 
have the most work to do." (Ishaq Dar, Dawn, Dec 9). When these 
ministers themselves were feeling uncomfortable answering these 
questions, how can they blame anyone else.
Reporting from Washington on the PM's visit may have been 
'negative' as far as the spin-masters of the PM's team were 
concerned, but certainly it put the visit in the right perspective 
for the rest of the country, and it did serve vital national 
interests by doing so. The ministers should look for scapegoats for 
its failure in their own ranks, not outside.

Economic growth likely to decline next year: IMF

WASHINGTON, Dec 21: Economic growth in Pakistan is projected to 
decline to three per cent in 1999 after 5.3 per cent in 1998, the 
IMF said on Monday in a report which contrasts sharply with the 
targets set in the recently-concluded agreement between the two 
In its World Economic Outlook, released here on Monday, the IMF 
said inflation in Pakistan would jump to 10.7 per cent next year 
from 7.8 per cent in 1998.
Both these projected estimates were different from the promises and 
commitments made by the economic managers of Pakistan to the IMF 
during their negotiations on restoration of the ESAF programme.
It is unclear how the IMF has accepted the claims of the Pakistan 
government when its own projections are to the contrary.

"Either the IMF is going to be proved wrong by Pakistan or if they 
are right, Pakistan is not going to meet the targets set by the IMF 
and will thus not be able to keep the IMF programme going," an 
international expert said.
But an IMF official explained to Dawn that such discrepancies 
continued in all International Monetary Fund programmes with 
different countries and it was not likely to impact the just-
concluded agreement with Pakistan.
The IMF said the drop in output growth reflected "deterioration in 
1998 of the country's external financial situation, partly owing to 
the economic sanctions imposed after the nuclear tests in May and 
the ensuing loss of investor confidence."
In September, the International Monetary Fund said, Pakistan's 
economy would grow 5.4 per cent this year, after 1.3 per cent in 
Referring to the recently-concluded agreement with Pakistan, the 
IMF report said: "By end-November, the government had prepared a 
programme of substantial macroeconomic adjustment and structural 
reforms designed to promote a sustainable improvement in growth 
performance. The programme, which seeks to restore investor 
confidence and regularize Pakistan's relations with creditors, 
would require exceptional financing from the international 

NA passes bill on executive authority of President

ISLAMABAD, Dec 24: The Executive Authority of the Federation Bill, 
1998, was passed through voice vote by the National Assembly on the 
very first day of its 15th session on Thursday.
The bill, moved by Law Minister Khalid Anwar, is in consonance with 
Article 90 of the Constitution which provides that the executive 
authority of the Federation shall be exercised by the President 
either directly or through the officers subordinate to him in 
accordance with the Constitution.
According to the statement of objects and reasons of the Bill, 
Article 90 of the Constitution provides that all executive actions 
of the Federation shall be expressed to be taken in the name of the 
President and the President shall make rules for the allocation and 
transaction of business of the Federal government.
It states that sometimes a question is raised whether a power 
vested in the President by a statute is exercisable by the 
President personally or in the manner relating to the allocation 
and transactions of Federal government business.
The statement says that in the parliamentary form of government the 
executive authority of the government is exercisable in the manner 
prescribed by the rules but actions are expressed to be taken in 
the name of the President.
It further says the bill aims at stating the true rule relating to 
the mode of exercise of power vested in the President in a statute.
At the outset of the presentation of the Bill, the opposition MNA, 
Naved Qamar, urged the government not to bulldoze the bill. He held 

that it was another attempt by the government to accumulate all 
powers into the hands of one individual.
Mr Qamar said the President was not functioning as a true 
representative of the Federation as under the Bill in question all 
powers had to lie in the House of Ittefaq or Raiwind. He said after 
adoption of this bill, the treasury members had taken away all the 
functional powers from the President. He said in the wake of 
adoption of 13th Amendment in the Constitution, all functional 
powers of the President had been taken away and every thing done in 
the name of the President would be done by a section officer. He 
said the bill indicated one thing that the brute majority of one 
province overwhelmed the other provinces.
Responding to the criticism of the opposition members on the Bill, 
Law Minister Khalid Anwar defended the Bill and termed the 
Executive Authority of the Federation Bill purely as a technical 

MQM, opposition evolve working relationship
Bureau Report
ISLAMABAD, Dec 24: The Muttahida Qaumi Movement has reached an 
understanding with the opposition in the National Assembly to 
develop a working relationship on four issues, including the 
running of democratic institutions in Sindh.
This was stated by the MQM's parliamentary group leader, Shaikh 
Liaquat Hussain, at a press conference here on Thursday.
The MQM and other opposition parties would jointly raise voice 
against the trampling of the democratic process, imposition of 
governor's rule, setting up of military courts and invocation of 
245(A) of the Constitution in Sindh, he said.
The MQM MNAs, Kunwar Khalid Younas, Arif Khan and Dr Nishat Malik, 
were present.
Mr Hussain strongly protested against the behaviour of the speaker, 
Illahi Bukhsh Soomro, describing it as undemocratic and biased.
Lashing out at the prime minister he alleged that Nawaz Sharif was 
hatching a conspiracy to pave the way for the formation of a 
"greater Punjab". Accusing the government for creating an East 
Pakistan-like situation, he blamed the ruling party for the murder 
of Hakim Said. Actually 'they' had killed Hakim Said to create an 
excuse to impose governor's rule and unleash oppression against the 
MQM. He said, there was no justification for the imposition of 
governor's rule or the setting up of military courts in Karachi.
Mr Hussain said the MQM was being victimized because it had refused 
to support Mr Sharif's version of Shariat which was in fact an 
attempt to impose his dictatorial rule in the country.
He deplored that MQM members despite having valid documents were 
stopped from going to Saudi Arabia to perform Umra.
Responding to a question he said the cooperation with the 
opposition parties would be initially on an issue-to-issue basis.


Parliament can exempt imports from duty

ISLAMABAD: Dec 23: A Presidential Ordinance No XVI of 1998, has 
amended the Customs Act, taking away from the Central Board of 
Revenue the powers of exempting the customs duty on import of 
goods. These powers have now been placed with the Parliament, as 
was done in case of sales tax through the Presidential Ordinance No 
2, of 1998.
The ordinance says: Whereas it is expedient further to amend the 
Customs Act, 1969, for the purposes hereinafter appearing; and 
whereas the National Assembly is not in session and the president 
is satisfied that circumstances exist which render it necessary to 
take immediate action; now therefore, in exercise of powers 
conferred by clause (1) of article 89 of the Constitution of the 
Islamic Republic of Pakistan, the president is pleased to make and 
promulgate the following ordinance called the Customs Amendment 
Ordinance, 1998.
It shall come into force at once (December 20, 1998). Amendment of 
section 18, Act IV of 1969. In the Customs Act, 1969, hereinforth 
referred to as the said Act, in section 18, in sub section (2), for 
the word and comma "may", on the recommendation, or with the 
concurrence, of National Tariff Commission constituted under the 
National Tariff Commission Act, 1990, the commission, shall be 
Amendment of section 19, Act IV of 1969: In the said Act, in 
section 19, in sub section (1), for the full stop at the end a 
colon shall be substituted and thereafter the following proviso 
shall be added, namely:
"provided that the federal government shall not exempt any goods 
imported into Pakistan from the whole or any part of the customs 
duties chargeable thereon, except in the following cases, namely: 
(a) for certification of tariff related anomalies on the 
recommendation of National Tariff Commission, or (b) for the 
fulfilment of an international obligation of the government of 
Pakistan, or (c) for the purpose of national security or 
environment protection.
In the said Act, the section 20 shall be omitted. In the said Act, 
clause (b) shall be omitted; for clause (c), the following shall be 
substituted, namely: "(c) the payment in whole or in part of the 
customs duty paid on the importation of any goods which have been 
used in the production, manufacture, processing, repair or 
refitting in Pakistan of goods meant for exportation, or for supply 
to industrial units, projects, institutions, agencies and 
organisations entitled to import the same at concessionary rates.
In the said Act, section 21A shall be omitted. All notifications 
issued, orders made, or exemptions granted under section 19, 20, 
21, or 21A as it existed immediately before the commencement of 
Customs (Amendment) Ordinance, 1998, shall continue in force but 
any such notification, order or exemption may, at any time be 
rescinded, modified or withdrawn by the federal government or the 
CBR which has issued, made or granted such notification, order of 

Non-bank borrowing hikes debt servicing

KARACHI, Dec 24: The government has set up Special Investment Cells 
early this month in all regional directorates of National Savings 
to meet its fresh borrowing target of Rs142 billion, official 
sources said.
The government has recently doubled its non-bank borrowing target 
for 1998-99 from budgeted Rs71.3 billion to Rs142 billion to offset 
revenue and external receipts shortfall. Last year non-bank 
borrowing touched over Rs68 billion.
"Our target has been revised to about Rs21 billion from Rs12 
billion, and we are well ahead of it", said an official at Karachi 
Centre. He said up to 21 December the total collection in different 
national saving schemes was over Rs10 billion against the whole 
year target of Rs21 billion.
But the official at the Central Directorate Islamabad said there 
was normal flow of investment in these schemes. "The peak season is 
from May to June when the flow from private firms start", he said.
But experts warn that heavy reliance on these schemes to meet 
current spending is brewing yet another debt crisis. And the 
government is heading towards internal debt default as servicing on 
this debt is extremely costly.
"A rough estimate of interest expense of these schemes for FY 98 is 
at least Rs66 billion, which means that government used over 76 per 
cent of inflows to service interest", said a leading economic 
expert. "Only 24 per cent of annual inflows are available for 
spending and the rest is needed to pay interest", he added.
The compound interest on different saving schemes ranges from 17-18 
per cent and no other saving instrument offers such a high return 
as they are subject to Zakat and withholding tax.
During the last 8 years the build up in these schemes has been 
whopping, increasing from Rs140 billion in 1990-91 to about Rs459 
billion in 1997-98.
Experts say if things do not change the amount from these schemes 
will need to grow by 100 per cent each year to ensure debt 
servicing on these schemes.
"The corresponding return on these schemes is zero as government is 
not spending this money in long-term infrastructure projects or 
human capital development", said an economist.

Euro as forex reserves: Final say rests with the govt

KARACHI, Dec 24: The government has a final say in deciding whether 
Pakistan should keep part of its foreign exchange reserves in euro 
and the State Bank board of directors can only make a 
recommendation in this regard.
Senior bankers well-versed with State Bank rules said it is for the 
SBP board of directors to declare a currency as an approved foreign 
currency before recommending to the government to use it as part of 
forex reserves.
These bankers said that the board is due to meet on December 29 in 
Islamabad adding that the meeting may consider declaring euro an 
approved foreign currency. The board may then recommend to the 
government to keep part of foreign exchange reserves in euros. But 
it is not clear whether the SBP board will make this recommendation 
in the same meeting or after some time. In either case the 
government may take some time in implementing such a 
Finance Minister Ishaq Dar said a couple of days ago that the 
government would monitor the functioning of the euro for at least 
90 days before deciding whether Pakistan could keep part of its 
forex reserves in euros. The State Bank has already issued a 
circular allowing the banks to start doing business in euros.
Euro  the single currency of 11 European countries will be 
launched on January 4 1999  the first working day next year. Banks 
in Pakistan will start quoting euro rates from January 5.

Gold prices plunge to 8-month low

KARACHI, Dec 24: Prices of yellow metal plunged by Rs 60 per 10 
grams Thursday to Rs 5,100 and dealers attributed the unabated 
decline in bullion rates as the repercussions of US attack on Iraq.
'Bearish spell in the international bullion market in the backdrop 
of air-strikes on Iraq is the major reason for continuous fall in 
gold prices,' said a bullion dealer in the local market.
The gold prices have plunged by almost Rs 200 since Monday last. On 
Wednesday, the 10 grams of 24-karat pure gold was being sold at Rs 
'There is a demand for gold in the local market due to upcoming 
Eid-ul-Fitr ceremonies,' said another bullion dealer.
Referring to the current prices of gold, he said that it was almost 
after 8 months that the bullion rates have plunged to Rs 5,100 

Govt to import 650,000 edible oil saplings
Shaukat Ali

LAHORE, Dec 24: The federal government is importing over 650,000 
saplings of edible oil plants from Malaysia, Sri Lanka and Canada 
to initiate a Rs3.5 billion project in a quest to attain self-
sufficiency in ghee and cooking oils. 
Federal agriculture ministry sources told Dawn here on Thursday 
that around 60 per cent of the saplings' consignments from Malaysia 
had already reached Karachi and the rest of their import would be 
complete by the end of February next year. 
The plan to get rid of edible oils import was designed in 1994 but 
due to paucity of funds it could not be carried out. 
"Even if we start growing the plants today it will take about four 
years that some results of the projects are visible", official 
sources said. 
Islamabad has been spending, on the average during the last three 
years, around Rs30 billion annually on the import of palm, soyabean 
and canola oils mainly from the Far Eastern countries. 
"The edible oils bill at the end of current financial year will be 
much more than this figure due to devaluation of rupee and increase 
in freight charges this year", the sources noted. 
Pakistan gets bridge financing of $200m
M. Ziauddin

ISLAMABAD, Dec 23: Pakistan has arranged short term bridge 
financing of 200 million dollars reportedly from Al-Meezan 
Investment Fund of Kuwait at an undisclosed but presumably very 
high rate of interest.
It has mobilised another 50 million dollars, again on short term 
basis and at a very high rate through SWAP arrangement.
And the State Bank of Pakistan is said to have bought 38 million 
dollars at the interbank rate under the cover of legitimate 
intervention which is made from time to time by the SBP for keeping 
the exchange rate under control.
The addition of these 288 million dollars has pushed up the Foreign 
Exchange Reserves (FER) to over 791 million dollars from 503 
million dollars on December 16, 1998.
Pakistan has built up the FER with such costly resources in view of 
the fast approaching deadlines for debt repayment amounting to 
about 550 million dollars with 250 million dollars due before 
December 31, 1998 and another 300 million dollars by the middle of 
January 15, 1999.
Islamabad hopes to meet the repayment deadline for the latest short 
term but costly loan of 250 million dollars in time as the IMF is 
expected to disburse its first tranche of about 300 million dollars 
within 10 days of approval of Pakistan's structural adjustment 
programme by the Fund's Board meeting tentatively on January 8, 
However, even if the meeting is delayed by a week, the disbursement 
will, hopefully, be made by January 25, 1999 which would still 
leave a couple of days before the repayment deadline would expire.
The amount (324 million dollars) which is expected to be received 
by December 31, 1998 as a result of the settlement of the matter of 
28 undelivered F-16s, is also likely to be used as a fall back in 
case the Fund's Board meeting is delayed unexpectedly.
Pakistan reportedly is also trying to get the bilateral official 
donors to agree to June 30, 1999 as the cut off date for deciding 
about the period for which debt rescheduling may be allowed to 
Islamabad by the Paris Club.
Most of the donors who gathered at Paris earlier this month, 
however, are said to have agreed on June 30, 1997 as the cut -off 
date with only the US proposing March 31, 1998 as the cut off date. 
But some of the donors who are reported to have arranged large 

loans during March 1998 have disagreed with the US proposal.
The Paris Club facility is expected to allow Pakistan a four year 
respite from debt servicing and from year 2004 onwards Pakistan 
will be obliged to clear the accumulated debt in 12 years with two 
years grace period.

Punjab to be projected as haven for investment
Intikhab Hanif

LAHORE, Dec 22: All is set to get the recently created Board of 
Investment and Trade Promotion Punjab (BOITPP) registered under the 
Companies Ordinance 1984 to give it a legal entity, limited 
liability and full operational freedom. 
The BOITPP was created early this year with Punjab Chief Minister Shahbaz
Sharif as its president. At present the board is 
functioning under the framework of the companies ordinance and not 
rules and procedures of the government departments. 
According to documents the BOITPP's job is to undertake, while 
remaining within the parameters of the federal government policy, 
an on going image building initiative "with a view to project 
Punjab as an attractive province of Pakistan for investment." 
Its other functions are to identify, design, develop and promote 
investment opportunities in Punjab, to promote trade and investment 
for it, to liaise with the federal government in the formulation 
and implementation of foreign policies regarding investment and 
trade promotion here and coordinate with the Federal Board of 
Investment in matters of foreign and local investments. 
The decision that it should act like a company and be registered 
under the Companies Ordinance was taken during its Board of 
Governors first meeting that was chaired by Shahbaz Sharif on 
October 20. 
"As per decision of the meeting and directions of the chief 
minister the draft for the articles and memorandum of association 
for the BOITPP has been prepared and is being actively considered 
by legal experts to get the board registered as a company at the 
earliest," officials informed Dawn on Tuesday. 
They said the board has been conceived and approved by the chief 
minister as an autonomous body composed of and managed by 
professionals from the private sector. External auditors of repute 
will be appointed to undertake audit of accounts and also evaluate 
performance of the functionaries, official said. 
They claimed the board will recruit a team of highly qualified 
professionals  MBAs, chartered accountants and engineers  for its 
permanent secretariat to create "an efficient blend of initiative 
and commercial diplomacy" and to support the establishment of a 
large network of Bilateral Business Councils with various 
According to the budget approved by the Board of Governors meeting 
the BOITPP has been given Rs26.76 million to establish its 
secretariat and run its affairs during a period of nine months  
till the end of the current financial year. 
Of the total amount, Rs6.50 million is for the salaries of the 
staff, Rs3.16 million for office equipment, Rs1.39 million for 
furniture and fixture and Rs3.79 million for new vehicles. 

State Bank composite rates go up

KARACHI, Dec 22: The State Bank composite exchange rate closed at 
Rs50.31/50.77 per dollar on Tuesday up from Rs49.17/49.59 on 
Saturday showing an appreciation of Rs1.18 or nearly 2.4 per cent 
in a single session.
Tuesday was the first working day after the change announced in the 
composition of composite rate. Banks remained closed on Monday for 
public dealing.
Senior bankers said as the market opened on Tuesday floating inter-
bank rates were quoted at Rs52.10-Rs52.20 per US dollar but later 
on the rates oscillated between Rs50.70 and Rs50.90. On Saturday 
inter-bank rates were traded between Rs52.20 and Rs52.30 per US 
The government on Saturday changed the composite rate mix from 
50:50 to 80:20 thereby allowing the exporters to sell and importers 
to buy 80 per cent of export proceeds at inter-bank rate and 20 per 
cent at official rate. Bankers attributed the rising of State Bank 
composite rates to higher floating inter- bank rates quoted by 
leading banks whose average buying and selling rates are used by 
SBP for working out the composite rate.
Most bankers said it could not be predicted how the market would 
behave in the coming days but some of them felt that the rates 
might remain stable.
"I think the market would remain stable in the days to come," said 
treasury manager of a foreign bank. "There were some confusions on 
the implementation of the new rates mechanism which are over now, I 
hope the rates might come down by a few basis points tomorrow."
SBP composite rates had hit the lowest ebb at Rs48.91/49.31 for 
spout buying and selling on December 15 from a record peak of 
Rs51.57/51.97 on November 11. The fall in the SBP composite rates 
came about after two interventions in the market by the State Bank 
during this month.

CBR accord with Stamp for tax reforms

ISLAMABAD, Dec 22: A contract agreement has been signed between the 
Central Board of Revenue and Maxwell Stamp for Tax Administration 
Reform Project (TARP). The World Bank approval has been sought to 
start work on the project.
This has been stated in an update compiled by M.Munir Qureshi, 
Member CBR Human Resource and Restructuring, and obtained by Dawn 
here on Tuesday.
The agreement for consultants services for creating the new 
structure of CBR, has been initialled between CBR and M/s Maxwell 
Stamp on November 18, 1998, and the permission of World Bank has 
been sought to give a go-ahead signal to the company to start the 
work on TARP.
Under TARP, CBR will be sending teams of select officials to 
Malaysia and Singapore to familiarize them with the experiences of 
these countries in modernizing their tax administration. 
The report offers all the details based on the Fifth Draft of 
restructuring now being studied by the Law Division. It says that 
the status of 35,000 CBR officials and staff would largely remain 
unchanged under the restructuring plan while the Policy Board will 
take all major decisions and Chairman CBR would be enjoying greater 
managerial powers.
PB is being authorized to waive any restrictions on spending of 
allocated amounts; chairman CBR will be designated as the 
authorized officer in place of secretary establishment for the 
Revenue Division.
A tax administration reform project (TARP) will have the following 
aims: operationalizing an autonomous tax service; designing 
streamlined business process to bring about paradigm shift in 
delivery of tax service to taxpayer; designing taxpayer 
facilitation services; training the vanguard tax officialdom; and 
strengthening audit and enforcement.
The International Development Agency (IDA) has approved credit of 
$5 million to fund the reform but the release of these funds is 
conditional to enactment of PRS ACT. 

SBP allows banks to open Euro accounts

KARACHI, Dec 21: The State Bank on Monday allowed all local and 
foreign banks operating in Pakistan to open Euro accounts with 
their correspondents abroad.
A SBP circular F.E. no 53 said the opening of these accounts would 
be subject to submission of a report to the State Bank. Banks say 
they are ready to open Euro accounts and quote their own exchange 
rates from January 5.
The Eurothe single currency of 11 European countries will be 
launched in the Euroland on January 4 1999the first working day 
next year.
The SBP circular said banks might also handle export import 
documents and other inward outward remittances denominated in Euro. 
It said they can also accept Euro deposits under its new scheme for 
opening foreign currency accounts.
The circular said the banks would determine their own rates of 
exchange in Euro both for spot and forward transactions on the 
basis of the US dollar versus Pak rupee rate and the dollar versus 
Euro rate.
The State Bank asked the banks to report Euro transactions in a 
prescribed format and also to submit information in respect of the 
balances held in Euro accounts.
The SBP board of directors is meeting sometimes this week to decide 
whether Pakistan would keep Euro as part of its liquid foreign 
exchange reserves.
On Dec 31 exchange rates would be fixed between the Euro and the 
individual currencies of 11 countries constituting the Euroland 
which would remain in force for next two yearsup to December 31 
During January 1999 to December 2001 people around the world be 
free to do business with the Euroland countries either in their 
individual currencies or in the Euro but these countries would 
determine exchange rates by crossing any foreign currency with the 
Euro and not with individual currencieslike Deutsche Mark or 
French Franc.

Stocks sluggish as investors remain on sidelines

KARACHI, Dec 24: Stocks passed through a cheerless session on 
Thursday as leading investors did not take new positions on the 
blue chip counters partly because of a closure ahead and partly due 
to lack of new guiding factors.
An idea of sluggishness may well be had from the fact that the 
trading volume was lower by over 33 per cent as compared to the 
overnight total of 70 million shares, reflecting the absence of 
leading investors.
The KSE 100-share index after fluctuating both ways finally ended 
at 952.35 points as compared to 953.05 a day earlier, showing a 
fractional fall of 0.70 points.
"The market lacks buying interest even from bargain-hunters as most 
of them preferred to keep to the sidelines rather than take new 
positions on pivotals at the falling prices for no apparent bearish 
reasons," analysts said.
Some others said the presentation by the Hub-Power management 
around 3.30 p.m. on the current row over the tariff issue with the 
government to the members of the Karachi Stock Exchange was one of 
the chief reasons behind the cheerless trading.
"A sizeable section of foreign investors was conspicuous by its 
absence as they are on X'Mas and new year holidays and might stay 
out for over a week," said a leading broker.
However, it goes to the credit of the market that it maintained a 
steady posture as speculative forces maintained a near-status quo, 
without indulging in heavy selling or buying.
Hub-Power was traded in an extremely narrow band of Rs 13.10 to Rs 
13.35, fractionally down from the overnight close of Rs 13.30, but 
trading was light as investors were not in a mood to buy at the 
falling prices.
Floor brokers said year-end buying to adjust portfolio could emerge 
possibly by the next week but they ruled out the possibility of any 
major change in the current trading pattern.
The news of third interim dividend at the rate of 20% making the 
total for the current year to 70% by Fauji Fertilizer was well-
received in the rings as was reflected by fresh increase in its 
share value amid active short-covering.
Modest dividend at the rate of 5% and 10% by Al-Noor Modaraba and 
Confidence Modaraba were welcomed in the rings but they did not 
prove a market factor influencing the trading.
Barring some big gains and fall, price changes were mostly 
fractional reflecting the absence of leading buyers and jobbers.
Pak Datacom, Lever Brothers and Pak Apex Leasing were, however, 
exceptions, which came in for modest support and ended higher by Rs 
1.25 to Rs 2.00. Dewan Salman, Ibrahim Textiles and S.G. Power rose 
by 50 paisa to 75 paisa.
Most of the leading shares came in for stray selling at the higher 
levels and fell by one rupee to Rs 3.00 under the lead of Faisal 
Spinning, Gadoon Textiles, Essa Cement, Balochistan Wheels, Colgate 
Pakistan and Cherat Papers.
Trading volume fell to 47 million shares from the previous 70 
million shares as most of the current favourites were traded 
modestly including the PTCL whose average turnover is placed around 
30 million shares.
PTCL led the list of most actives, up fractionally around Rs 19.10 
on 16 million shares, followed by ICI Pakistan, higher 30 paisa at 
Rs 11.45 on 9 million shares, Hub-Power, lower 15 paisa at Rs 13.15 
on 6 million shares, Fauji Fertilizer, up 45 paisa at Rs 46.70 on 5 
million shares, and KESC, firm 10 paisa at Rs 8.90 on 3 million 
Other actively traded shares were led by PSO, higher 25 paisa on 
1.823 million shares, followed by FFC-Jordan Fertilizer, easy 10 
paisa on 0.603 million shares, Southern Electric, up 25 paisa on 
0.348 million shares, Dhan Fibre, lower five paisa on 0.261 million 
shares, Japan Power, easy five paisa on 0.183 million shares, and 
Dewan Salman, up 75 paisa on 0.171 million shares.
DIVIDEND: Al-Noor Modaraba, cash five per cent on aftertax profit 
of Rs 11.159 million, Confidence Modaraba, 10 per cent on posttax 
profit of Rs 7.688 million, Guardian Leasing, aftertax loss of Rs 
5.372 million.
DEFAULTING COMPANIES: Active trading was witnessed on this counter 
as 69,000 shares including 55,000 shares of National Modaraba were 
traded off 20 paisa at 80 paisa per share.
Suzuki Motorcycle also attracted good support and was held 
unchanged on 10,000 shares. Mian Textiles, Allied Motors, Asia 
Board and Gammon Pakistan followed them on 2,000, 500, 1,000 and 
500 shares respectively.

Back to the top
Quaid's charismatic leadership
By Dr Sikandar Hayat

THE application of the concept of charisma in the field of 
political leadership has led to a single, straightforward approach. 
Political leaders are either 'charismatic' or 'non-charismatic', 
based on the given evidence. Very few leaders have been found to 
elude this typology. One such exception is the case of Quaid-i-Azam 
Mohammad Ali Jinnah, the founder of Pakistan.
Some writers attribute charisma to him. Others deny it. The purpose 
of this discussion is to argue and suggest how, in fact, Quaid-i-
Azam Jinnah is a charismatic leader in the true sense of the term.
By the middle of the 1930s, the Muslims of British India were in a 
very difficult situation. The Round Table Conference in London had 
failed to satisfy their demands and interests. Hindu-Muslim 
relations were at their lowest ebb. There was hardly any leader in 
the country who could promote and protect their interests. Jinnah, 
their old and trusted leader, was in self-imposed exile in London. 
Indeed, the Muslims were completely lost.
But Jinnah decided to return to India and help. As he himself put 
it; "I found that the Musalmans were in the greatest danger. I made 
up my mind to come back... I could not do any good from London." He 
returned imbued with "a sense of mission", and soon undertook the 
task of organizing the Muslims for the coming elections. But he was 
still interested in reviving the "entente" of the Lucknow Pact in 
the cause of the advancement of India towards "responsible self-
government." He even fought the elections of 1937 on a conciliatory 
But, the Congress, winning in all the Hindu-majority provinces, 
refused to "share power" with the Muslims. The plain meaning of the 
Wardha Resolution, declared Jawaharlal Nehru, "is that only the 
Congress parties with a majority in the provincial assemblies are 
entitled to form ministries from among their own members."
This naturally frightened the Muslims all over the country, 
including the Muslims of the Muslim-majority provinces. They felt 
that they could not remain secure either, for they, too, were 
dependent upon non-Muslim support for the survival of their 
governments. Though, numerically, they were a majority in these 
provinces, as voters they were "a minority" because of the 
electoral qualifications.
The use of "inexorable logic of 'majority rule' by the Congress 
also convinced Jinnah that the Hindus and the Congress were "in 
reality, aspiring and working for unadulterated power for 
themselves." He was now convinced that "the majority community have 
clearly shown their hand that Hindustan is for the Hindus..." The 
"one wholesome lesson", he pointed out, was that the Muslims "must 
realize that the time has come when they should concentrate and 
devote their energies to self-organization and full development of 
their power to the exclusion of every other consideration."
And this included, as it became clear soon, the system of 
parliamentary government in India. This system, Jinnah stressed, 
had "resulted in a permanent communal majority government" in 
India, and was thus bound to make Muslims "virtually feudatories of 
the central government in all respects." Safeguards, he reckoned, 
"constitutional or otherwise", could be of no use. They could not, 
he believed, save Muslims from "the kind of subtle, insidious 
discrimination for which the law itself could provide no remedy."
It had now become clear that Congress nationalism was only "Hindu 
nationalism", and that there was no place for the Muslim in the 
Indian sun. The British system of government had brought to the 
fore the stark reality of "majority rule", with Hindus "always in 
power and the Muslims never." Not only that the Hindus "could 
scarcely be expected to surrender the rights their numbers gave 
them", the Congress leadership in its "total adherence to the 
western mode of thinking and forms of government" was not even 
willing to take into consideration the "peculiar and unique 
political conditions in India", which were indeed different from 
those of "a unitary country like Britain."
Matters were further complicated by the mentality of the Congress, 
which was essentially Hindu, and was largely inspired by Gandhi, 
who was "confessedly devoted to the old traditions of Hinduism." 
Even Nehru could not deny that "Indian nationalism" was "dominated 
by the Hindus" and had "a Hinduized look."
If we agree with Ann and Dorothy Willners in considering "the 
typical colonial order" to be "a fair approximation of the weberian 
model of legal-rational authority, then, indeed the British system 
of government introduced in India was not acceptable to the 
Muslims. The Muslims saw the system to be heavily biased in favour 
of the Hindu majority community. They did not want it any more. The 
traditional authority had already been discredited during the 
colonial rule. The western institutions had prevailed. Indeed, 
according to Allama Muhammad Iqbal, the most remarkable aspect of 
Muslim history in India was the enormous rapidity with which the 
world of Islam had reconciled to the West.
With the failure of "rational legality" and in the absence of 
political tradition, thus, there was a void. The experience of 
Congress ministries in the provinces, rejecting the Muslim offer of 
cooperation, and ignoring Muslim grievances had created "a general 
feeling of insecurity" all around. The British decision to withdraw 
from India, after their authority had declined in the course of the 
"dislocations" caused by the Second World War, added to the "vacuum 
of authority and very ambiguous expectations" in Muslim India.
It was into this vacuum that Jinnah moved by promising the Muslims 
"political power." He proposed the Pakistan idea  a Muslim state 
comprising Muslim-majority areas of India. The idea represented not 
only "the mainstream of Indo-Muslim history" of Sir Syed Ahmad Khan 
and the Aligarh tradition in defining the Muslims of India in 
political terms, but also a great sense of Islam and Islamic 
history in treating "an independent political community" as "the 
very genius of Islam."
That is why the Muslims of India took it upon themselves as their 
"religious duty" to follow Jinnah who was ready "to unite the 
community and bring earthly glory to Islam" rather than be guided 
by learned Maulanas like Abul Kalam Azad and Hussain Ahmad Madani.
Though the masses tend to follow a charismatic leader "voluntarily 
and without material recompense" as indeed the Muslims did in 
India, the support of powerful social groups is crucial for the 
success of the charismatic appeal. Without their appropriation and 
reconciliation of the new idea to their "group or class interests" 
it cannot have any significant impact. Indeed, Jinnah was able to 
win the support of a number of social groups. The educated, urban 
middle class professionals, students, mercantile classes and 
merchant-industrialists saw great opportunities in securing a state 
where the Muslims would be a "great majority", and thus they would 
not have to suffer at the hands of the advanced Hindu community.
But, then, it is true that, whatever the success of the charismatic 
appeal, it is "never fully accepted by the entire society." There 
are always opponents. In the case of Muslim India, too, there were 
quite a few groups who did not respond favourably to the idea of 
Pakistan. Though some prominent ulema saw in Pakistan the prospects 
of establishing the "sharia", a good number of them, associated 
with the Jamiat-i-Ulama-i-Hind chose to work within the framework 
of a united India. So did the provincial leaders of the Muslim-
majority provinces, who were still tied to schemes of 'regional 
zones' or 'federal India' to help the Muslims. They were not 
willing to accept "new obligations, ideas and social relationships" 
given in the Pakistan alternative.
The charismatic leader is not any leader who can simply draw and 
inspire a following, but the one who can demonstrate the needed 
qualities in the process of asking people to join in and in leading 
such a movement. Convinced that he alone represented all the 
Muslims of India, and demanding "the unity of the Muslim nation", 
Jinnah, thus, proceeded with the restructuring of the Muslim League 
organization and putting new life into its activities. He entered 
into alliances with provincial leaders, particularly in Punjab, and 
thereby expanded his power base. He followed it up by concentration 
of power within the League, ensuring that the power of the 
President was not dependent upon the League as an organization but 
also "acquired a personal character." He started appealing to the 
people directly on the Pakistan issue "over the heads of then old 
political leaders" by using "mass methods" of mobilization.
In addition, he went on exploiting the Congress "mistakes and 
miscalculations" and, in particular, the one relating to the 
Congress decision to withdraw from ministries in 1939, by 
encouraging the formation of League ministries in their place. The 
result was that the League could soon claim that it controlled the 
ministries of all provinces demanded for Pakistan.
The support of the British or the Congress could not help 
provincial leaders as India moved closer to self-government at the 
end of the War. The numerous offers of independence made by the 
British also shifted the venue of politics from provincial to the 
national level, giving Jinnah "a strategic leverage" against these 
provincial leaders. They could not play any decisive role in the 
provincial matters, let alone of India as a whole. The demand for 
Pakistan holding forth "the prospect of undiluted power" to the 
Muslim-majority areas made their position all the more tenuous. 
Indeed, by winning overwhelmingly Muslim seats in the elections of 
1945-46, Jinnah could fully demonstrate that he had the backing of 
the whole Muslim community.
It was not enough, however, to be able to speak for the "united 
Muslims" of India. Jinnah also had to deal with the British and the 
Congress, and this was not going to be an easy task. For, Jinnah, 
unlike the Congress, had no allies among the British, and had also 
to confront scepticism, and even dislike of the British leaders, 
who refused to take Pakistan as a serious proposition. Their top 
priority, even when Lord Mountbatten arrived as the last Viceroy of 
India, was still "the unity of the subcontinent." They wanted to 
preserve a united India at all costs. The Congress too refused to 
take the Pakistan demand seriously, and claimed that the Muslim 
fears were really the result of British 'divide and rule.'
Jinnah, however, proved to be a hard and shrewd negotiator with the 
viceroy and Congress leaders: "never to give in, never to retreat, 
always to attack the opponent at his weakest point, and constantly 
to repeat his own position." Taking advantage of the War in 1939, 
with Muslims as "the main army elements" on the Allied side, he 
went on to extract from the British the declaration of August 8, 
1940, which admitted that the British could not impose their system 
of government on unwilling minorities. This was undoubtedly one of 
the greatest triumphs of his brilliant strategy on the War, whereby 
without giving full cooperation to the British, he got certain real 
concessions from them.
In 1942, he got the principle of Pakistan conceded by the Cripps 
Mission, and in his talks of September 1944 with M.K. Gandhi, he 
even succeeded in making him admit that a settlement between the 
Congress and the League involved essentially "discussion of the 
Pakistan issue." He remained dogged, legalistic and fastidious over 
details in all negotiations with the British and the Congress. He 
refused to join the expanded Executive Council of the Viceroy in 
1945 unless the Muslim League was given the right to nominate the 
Muslims on the new Council.
With League's enormous victory in 1946, and convinced that the 
British "really intended to go", he did not hesitate to deal with 
the British and the Congress with a strong hand. Thus, when the 
Congress did not agree to compulsory grouping under the Cabinet 
Mission Plan, he refused to attend the Constituent Assembly, and 
thereby destroyed the British-Congress concept of the future 
constitution of India.
After having negotiated with consummate skill and ready at last to 
employ the Direct Action, Jinnah finally created "a situation where 
partition emerged as the only acceptable alternative" to civil war 
and chaos. The British announced partition on June 3, 1947, with 
the Congress approval. Jinnah had triumphed over an extremely vocal 
majority and the mechanizations of "a great imperial power" that 
Britain was.
Had Jinnah not come to the rescue of the Muslims of India, it is 
quite possible that they would have been left in the lurch. Besides 
Jinnah, there was no other Muslim leader who could have done it or 
even attempted it. And even if one were to assume for the sake of 
argument that it would have been attempted without Jinnah, it is 
still not difficult to imagine that a compromise would not have 
been reached before 1947, and Pakistan would never had come into 
being. Pakistan came into being because of the personality and 
leadership of Jinnah. So great was the importance of the leadership 
of Jinnah in leading the Muslims to a safe destiny.
Jinnah was indeed the only leader of Muslim India who could always 
respond to the Muslim urges and aspirations, and who knew "how to 
express the stirrings of their minds in the form of concrete 
propositions." He could bring them "within the compass of popular 
comprehension" by putting them in concrete, almost tangible terms. 
One reason why the opponents of Jinnah failed to match his charisma 
was that they were hard put to presenting an alternative programme 
to Pakistan. Provincial leaders were left with no choice but "to 
swear by the Pakistan goal" in public at least. The Jamiat-i-Ulama, 
too, failed to come up with a political doctrine that could support 
a "composite" Indian nationalism.
Though the years following the demand for Pakistan saw a steady 
consolidation of the Muslim League, the fact remained that it was 
still the name of Mr Jinnah that could work miracles among the 
masses. Jinnah was the "living visible symbol of Muslim unity, 
Muslim aspirations and Muslim pugnacity" in India, and represented 
Muslim renaissance. He rid himself of Savile Row suits and changed 
to Muslim traditional dress of Sherwani and Shalwar and Karakuli 
cap, and even addressed the masses in his "unrehearsed, broken, 
Anglicized, and accented Urdu..."
Indeed, it was the transformation of a man of Jinnah's "taste, 
temperament and training" into the supreme leader of Muslim India. 
The Muslims of India trusted Jinnah, revered him, and loved him, 
and saw in him and his policies a kind of moral authority working 
on them. They regarded him as their saviour, their man of the 
moment, and were sure that his genius will discover some way out of 
their difficulties.
The rapturous response of Muslim India indeed grew out of their 
feeling that he, by virtue of his special powers as a leader, 
embodied the salvational promise of deliverance from an oppressive 
life predicament in India. Hence, they not only followed him 
enthusiastically, but also surrounded him with that spontaneous 
cult of personality which certainly is one of the symptomatic marks 
of the charismatic leadership. They called him their Quaid-i-Azam. 
Indeed, the title came to be used so extensively and consistently 
that even his political opponents and adversaries could not help 
addressing him as the Quaid-i-Azam.
The fact that the title of Quaid-i-Azam was used for Jinnah in 
1937, suggested that he was considered, even before the launching 
of the Pakistan movement, to be the man to lead the Muslims in 
future. Iqbal had rightly called him "the only Muslim in India" to 
whom "the community has a right to look up for safe guidance 
through the storm" facing Muslim India.
Jinnah too believed that it was his destiny to lead the Muslims of 
India to their "ultimate goal." He had devoted his entire life to 
finding a solution that would give status to the Muslim community 
free and equal to the Hindu community. It was this faith which not 
only encouraged him in his Herculean struggle, but also crowned his 
efforts with success. He was always sure of himself and his task. 
He knew what he wanted and was determined to get it. Nothing could 
detract him from his mission, and he could "neither be bought nor 
cajoled, neither be influenced or trapped into a position that he 
had not himself decided upon." That was the reason why in his talks 
with the British and the Congress, he always managed to retain "the 
integrity" of the idea of Pakistan "against compromise."
As the unchallenged leader of Muslim India, Jinnah possessed two 
supreme qualities of "single mindedness" and "unrivalled tactical 
skill." His aloofness not only helped contribute to the power of 
his national leadership, but also added to his magnetic presence. 
His tactical skill helped him to take advantage of every situation, 
however unpromising in the beginning. He was "a master political 
strategist" who considered politics in the Bismarckian sense of 
"the best possible," and knew when "to take 'the tide'" and when to 
make suitable mends "in the furnace of reality and expediency."
Jinnah's approach to politics was essentially rational, and he 
never lost "touch with, nor control over the realities of a given 
situation". One could see clearly a strong streak of hardheaded 
realism in his political behaviour. The only thing "adventurous" 
about him was, indeed," leading his people, like Moses into the 
unknown" world. But even there, he was "grimly deliberate, 
secretive and cautious." Jinnah had no petty or selfish ambitions 
of his own. Money and office meant nothing to him. Indeed, he never 
accepted an official position until he became the first governor-
general of Pakistan in 1947.
Jinnah came to lead the Muslims of India, "as if inspired by Divine 
power," and applied his drive and devotion to the cause he made his 
own. It was his strong will and complete faith in the righteousness 
of his cause that eventually helped create "a nation with life and 
vision" out of an "exhausted, disarrayed and frustrated people" on 
August 14, 1947.

The old school
Ardeshir Cowasjee

EVERY few years the Old Virbaijeeites, the old boys of the Bai 
Virbaijee Soparivala Parsi High School, my old school otherwise 
known as the BVS, reunite to wine and dine and to honour some of 
the elders who they feel are ready for the long jump.
This year I fell into that bracket, along with my elder cousin, 
Nadir Dinshaw Kabraji, classmate Minoo Bamjee, two old soldiers, 
Brigadier Jal Golwalla and Lt. Colonel Maneckjee Pestonjee 
Soparivala ('Mack'), and a few others. The speeches were crisp and 
short, the dinner long and enjoyable.
In 1843, the Parsis, the men originally from Pars, sailed into 
Karachi from Bombay, Surat, Variaw and other ports of the West 
Coast of India. As has been the norm of our community, the first 
thing they established was a place wherein to lay their dead, the 
Tower of Silence, built in 1847 by Hormusjee Dadabhai Ghadiali. 
Then, in 1848, Hirjibhai Jamshedji Behrana built in Saddar a place 
of prayer and a meeting place, an 'Atash Kadeh,' to which our 

Mobeds, the priests, are consigned. Our priests are ordinary men, 
treated with no special reverence, who accept their place in life 
with equanimity and preside over weddings, navjotes funerals and 
thanksgiving rituals.
Our religion being simple, secular, and tolerant, strictly between 
Man and his God, has little use for the priesthood. The community 
is religious to the extent of each man's leaning and all are 
capable of distinguishing religion from religiosity. Our religion 
teaches us to 'live,' not merely to 'exist'. There are no taboos, 
no prohibitions, no commandments. We are taught to live in the 
world as we find it, to fit in, to assimilate, and to shun and hold 
in contempt hypocrites, sycophants and self-servers. Early in life, 
a young Parsi is taught that he should humour the bigots and 
tyrants he may have the misfortune to come across, that he should 
not react to them and merely let them continue on their way. "Jetlo 
motto gadhero, tetli jhukinay salaam karo."
Next came the establishment of a school and a gymnasium, in which 
to exercise both mind and body. In 1859, the community met in the 
'Atash Kadeh', and elected educationist Nanabhai Framjee Spencer 
(the great-grandfather of Professor Adi Spencer) as the first 
honorary secretary. He organized what was needed and by May 23 of 
that year the 'Balak Shala' was ready to open. Shapurjee Hormusjee 
Soparivala, one of Napier's favourite commissariat suppliers, 
accommodated the school in his house and donated the princely sum 
of Rs.10,000. Thus came into being the BVS, named after his wife, 
Virbaijee. It was a community project and has remained such.
The school was not and is not a business venture. The Parsis 
donated their money and time. The chronicle of servers and donors 
lists everybody who was and is anybody in the community. The Parsi 
children studying at the BVS wanted nothing. They learnt well and 
left school equipped with knowledge, manners, and balanced minds.
Come 1947, and with it partition and that great man Mohammad Ali 
Jinnah, who also knew the value of education. He made a survey of 
the schools in existence in Karachi and drew up his plans to 
provide education for the huge bulk of children who came in with 
the events of that year. He could easily have appropriated or 
requisitioned whatever schools there were, but such options were 
not for a man such as he. He met the elders of the Parsi community 
Jamshed Nusserwanjee, Pestonjee Soparivala (Shapurjee's 
grandson), Ardeshir Mama (founder of the Mama Parsi Girls' School), 
and Rustom Fakirjee Cowasjee. He did not 'demand'; he pleaded his 
cause, he requested.
"Will you please help?" he asked them. "Your community runs two 
well organized schools, the BVS and the Mama. I know they are Trust 
schools established solely for the children of the Parsi community 
but my request is that you open your doors temporarily to the 
children of the Muslims of this new nation until I can build their 
In his capacity as a lawyer practising in Bombay he had drafted 
many a Parsi trust deeds and understood the complexities. He 

advised that the entire community be taken into confidence and 
asked to give their assent. A 'Samast Parsi Anjuman' meeting was 
called. It was unanimously agreed that schools were established to 
educate children, and that there could be no discrimination on the 
grounds of race and religion. The two Parsi schools were to 
immediately open their doors to the Muslim and other non-Parsi 
children of Karachi, not temporarily but permanently.
This year's old boys' reunion was organized by that energetic Old 
Virbaijeeite, Dr Feroz Ismail (class of 1966). Going back to the 
old school after a long time reminded me of the happy years I had 
spent there, from 1931 to 1941.
My principal was Dr Maneck Bejonji Pithawalla (1920-46). He taught 
us English, both language and literature. Some of the poems he 
taught us still echo in my head  Southey's 'The Inchcape Rock' and 
the story of the Abbot of Aberbrothock, Longfellow's 'The Wreck of 
the Hesperus', and Mrs Heman's 'Casablanca,' the story of the boy 
who stood steadfast on the burning deck. Professor Pithawalla also 
taught geography and laid great stress on the value in later life 
of a sound base of general knowledge.
An extract from the speech he delivered at his farewell function 
illustrates the quality of the man :
"At this moment, while thanking you in all humility for the very 
kind words you have said about me, I cannot help bringing back to 
my mind all those faithful and hard-working but poorly-paid members 
of the staff, without whose able assistance I would never have 
achieved the results pointed out by you. They remained poor, while 
the harvest that you reaped at their hands was rich. Nothing better 
was humanly possible with the low fees of 8 annas, as for the 
Infant Class, and Rs.5 for the Matriculation Class. Small wonder, 
that only deficits could be shown in the annual budget.
"But poverty, as I have always maintained, is not a sin. It could 
never be an obstacle to one's progress and evolution  and we went 
on with our duties to keep the BVS banner flying as high as we 
could. Poverty enables human beings to give their very best, goads 
them on to hard labour, and leads them to loftier stages of life. 
This I realize myself in particular, as I belonged to one of the 
poorest families in Navsari. But my poverty was my pride; and I 
endeavoured to brighten the lot of my parents in every way. The BVS 
was then called a poor boys' school, with a very large number drawn 
from the lower strata of the community. They were fed and clothed 
free; their class fees and textbooks were also given to them free. 
Having myself felt the sting of poverty, I always had a soft corner 
in my heart for them."
Pithawalla was followed by Behram Sohrab H.J. Rustomjee (1946-65), 
another fine teacher, an all-rounder and a great humanist, whose 
mind at the age of 85 is still active and incisive. Then came 
Behram Minwalla and Russi Divecha, both of whom were there for a 
very short time. Dinoo Mistri (nee Soparivala), the great-grand-
daughter of the founder, Shapurji, took over as principal in 1972, 
a position she still holds. At the reunion, she sat on the stage 
alongside her brother, Colonel Mack, now the chairman of the 
school's managing committee. Mack, a man of the 10th Baloch 
regiment, now long retired from service, fought in North Africa in 
World War II with Montgomery's Eighth Army.
The other soldier with us that day, Brigadier Jal Golwala, born in 
1917, a year before Mack, was head boy in my time. He stood first 
in every exam in school, in college in Bombay, and even for the 
Pakistan Army staff college entrance exam in 1951 which qualified 
him to be sent to Camberley for training. Commissioned from the IMA 
Dehra Dun in 1944, he was the first Indian parachute officer. 
During the 1965 war, he commanded the 16th Punjab on the Batapur 
Both Mack and Jal are still fighting fit, upright and trim. They 
put many of us to shame. Standing, they are both straight up and 
down, and can see their shoe-laces when they lower their eyes. Much 
to the annoyance of those with whom they now work, they are at 
their desks by 0825 each morning.
The BVS has produced many an entrepreneur  shipowners and 
shipbreakers (between them, owners and breakers have sponsored six 
schools for The Citizens Foundation), cotton kings, mill owners and 
industrialists. We are proud that from our school have come no 
politicians and no defaulters. Each man who has been through the 
BVS has given to his fellow beings more than he has taken from 

Pakistan lose series as Faisalabad Test abandoned

FAISALABAD, Dec 21: Zimbabwe won their first series abroad when the 
third and final cricket Test against Pakistan was abandoned on 
Monday due to foggy conditions which prevented not even a single 
ball to be bowled during the entire five days.

Umpires Salim Bader and his New Zealand colleague Douglas Cowie 
called off play at 10.30 am due to the persistent thick fog at the 
Iqbal Stadium.
The visitors secured the series on the basis of seven wickets' 
victory in the first Test at Peshawar. Bad weather also hit the 
second Test at Lahore which was drawn.
This was the first time in cricket history that a Test match had 
been totally fogged out, without a ball being bowled.
Faisalabad match brought to a close Pakistan's domestic 
international commitments during the current season, which have 
been far from happy.
The loss of earlier series to Australia was preceded by allegations 
of match-fixing and betting against some leading players.
Problems were further aggravated when captain Aamir Sohail stayed 
away from the last two Tests against Zimbabwe amidst charges of 
lack of support from his colleagues.
Paceman Henry Olonga who captured nine wickets in the truncated 
series was named as Zimbabwe 'Man of the Match' while middle-order 
batsman Yousaf Youhanna with 209 runs, including unbeaten maiden 
century, received similar award for Pakistan.
Pakistan captain Moin Khan was disappointed that inclement weather 
had robbed his side from getting back into the Test series.
"We were first denied the opportunity in Lahore and now a complete 
wipe out here was the final straw. It has been a huge 
disappointment for the whole team," he said while talking to 
Zimbabwe captain Alistair Campbell said he was obviously delighted 
that his team had won their first series abroad but felt sad that 
the two sides could not play cricket during the past ten days.
"It is really frustrating that we have been unable to provide any 
sort of cricket to the Faisalabad fans because of the weather 
"It is certainly a sad end to the series. The boys were looking 
forward to some competitive play, but unfortunately this did not 
happen. However, they are proud of their first series win 
abroad."Zimbabwe skipper.APP

Indian tour: Pakistan's itinerary being finalised
By Our Sports Reporter

LAHORE, Dec 21: Venues of matches for the Pakistan cricket team's 
tour of India will be finalised and communicated to the Pakistan 
Cricket Board (PCB) in a week's time.
PCB chief executive Majid Khan told Dawn on Monday that the Board 
of Control for Cricket in India (BCCI) was in the process of giving 
final shape to the itinerary of the Pakistan team. It had marked 
almost all the venues.
"One or two dates of some matches are yet to be finalised. The BCCI 
has promised that it will inform us about the dates and venues as 
soon as those were given shape. I personally feel that the whole 
programme should be completed in a week and we will make it public 
said the former Pakistan Test captain Majid Khan.
While replying to a question, Majid Khan said that the arbitrator 
N. P. K. Salve (former President, BCCI) had given his arbitration 
in favour of Pakistan.
Squash Promotion Association to launch talent hunt scheme

PESHAWAR, Dec 22: Squash Promotion Association(SPA) of Pakistan 
would launch squash coaching clinics and talent hunt scheme at 
school level in major cities of the country after Ramazan.

This was stated by president of the association, Farooq Butt, while 
talking to APP here on Tuesday.
He said, squash coaching clinics would be established in Karachi, 
Lahore, Peshawar, Rawalpindi, Faisalabad and Sialkot and added the 
squash champion Jansher Khan would visit these clinics as a 
visiting coach. 
He further said, talent hunt scheme would be launched at school 
level all over the country for which negotiations are in the offing 
with the concerned authorities.

He said, proper squash coaching would be given to the upcoming 
players in these coaching clinics which were aimed at exploring the 
squash talent in the country. He said, there is no dearth of squash 
potential in the country however, it needed serious and concerted 
efforts to explore it.
To a question, Farooq Butt said, he held detailed meeting with 
Jansher Khan at his residence in Peshawar and apprised him about 
the establishment of coaching clinics. He said, Jansher Khan agreed 
to visit these clinics.
In reply to a question, president of Squash Promotion Association 
said, shoes, rackets and other sports kits etc would also be put on 
display in the museum.APP

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