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DAWN WIRE SERVICE
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Week Ending : 26 December 1998 Issue : 04/51
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Contents | National News | Business & Economy | Editorials & Features | Sports
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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
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NATIONAL NEWS
981225
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Pakistan warns of Russo-India pact threat
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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
region."
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.
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981226
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More civilian tasks for army likely
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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
order.
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
masses".
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
influentials.
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
forces".
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
province.
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.
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981226
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3 provinces oppose new police plan for cities
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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
areas.
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.
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981223
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US announces deal on F-16 issue
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Correspondent
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
Amendment.
"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
government.
"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-
16s.
"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."
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981221
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Poppy elimination by year 2000 looks impossible
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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
official.
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
extended.
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.
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981221
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News Analysis: Blaming it all on reporters
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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
general.
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.
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981222
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Economic growth likely to decline next year: IMF
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Correspondent
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
sides.
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
1997.
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
community."
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981225
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NA passes bill on executive authority of President
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Correspondent
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
bill.
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981225
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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.
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981224
-------------------------------------------------------------------
Parliament can exempt imports from duty
-------------------------------------------------------------------
Correspondent
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
substituted.
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
exemption.
===================================================================
BUSINESS & ECONOMY
981225
-------------------------------------------------------------------
Non-bank borrowing hikes debt servicing
-------------------------------------------------------------------
Correspondent
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.
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981225
-------------------------------------------------------------------
Euro as forex reserves: Final say rests with the govt
-------------------------------------------------------------------
Reporter
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
recommendation.
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.
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981225
-------------------------------------------------------------------
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
5,160.
'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
mark.APP
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981225
-------------------------------------------------------------------
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.
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981224
-------------------------------------------------------------------
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,
1999.
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.
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981223
-------------------------------------------------------------------
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
countries.
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.
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981223
-------------------------------------------------------------------
State Bank composite rates go up
-------------------------------------------------------------------
Reporter
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
dollar.
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.
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981223
-------------------------------------------------------------------
CBR accord with Stamp for tax reforms
-------------------------------------------------------------------
Correspondent
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.
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981222
-------------------------------------------------------------------
SBP allows banks to open Euro accounts
-------------------------------------------------------------------
Reporter
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
2001.
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.
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981225
-------------------------------------------------------------------
Stocks sluggish as investors remain on sidelines
-------------------------------------------------------------------
Reporter
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
shares.
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
===================================================================
EDITORIALS & FEATURES
981226
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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
note.
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.
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981220
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The old school
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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
schools."
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
front.
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
them.
===================================================================
SPORTS
981222
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Pakistan lose series as Faisalabad Test abandoned
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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
reporters.
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
conditions.
"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
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981222
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Indian tour: Pakistan's itinerary being finalised
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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.
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981223
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Squash Promotion Association to launch talent hunt scheme
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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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