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                          C O N T E N T S 

N A T I O N A L   N E W S
PM likely to take final decision on census today
NA told about Pakistan's stand on CWC, CTBT 
Pakistan gets another waiver
MQM takes back ultimatum
HR groups seek protection for Riffat
ANP quits govt after talks fail
City to get additional water from March 23
Benazir demands fresh polls
Pre-admission test to be introduced in all Sindh varsities: Moin
1,600 teachers in non-existent schools of Sindh
Two Iranian technicians shot dead in Karachi
25,000 community schools planned
Eight dead in Korangi shooting

B U S I N E S S  &  E C O N O M Y 
Dumping duty on Pakistani cotton
IMF decision on 2nd tranche by mid-March
Defaulters fight back instead of repaying loans
Small traders call for strike today
HBL sell-off to be initiated next month
$300m for balance of payment support
CBR to be put on WWW today
WAPDA asked to release funds

Rs1 billion revenue shortfall in 7 months
Index loses 32 points on heavy foreign selling in PTCL

E D I T O R I A L S  &  F E A T U R E S
The second Tumandar                               Ardeshir Cowasjee 
Slow train to nowhere                                  Irfan Husain
Time for impartial assessment                      Saiyid Ali Naqvi
Nawaz Sharif's China visit                               M.B. Naqvi

S P O R T S 
Pakistan has an edge in hockey series against India
Rashid Latif needs no immediate surgery

                     N A T I O N A L   N E W S 
PM likely to take final decision on census today
Ashraf Mumtaz 
LAHORE, Feb 27: Prime Minister Nawaz Sharif will take a decision about 
holding the census on schedule or postponing it in the light of the letters 
written by the chief ministers of Sindh and Balochistan, Interior Minister 
Chaudhry Shujaat Hussain told Dawn here on Friday.
However, President Rafiq Tarar and Punjab Chief Minister Shahbaz Sharif 
said at the Lahore airport that the census would be held on schedule.
Chaudhry Shujaat said the federal cabinet had discussed the issue thrice 
but the chief ministers of the two provinces had not raised any objection. 
The schedule of the census, he pointed out, had been worked out in 
consultation with them.
But, he said, these two chief ministers had now sought a postponement of 
the exercise at the eleventh hour and the prime minister would take a 
decision keeping in mind all aspects of the matter.
As for the letter written by the army chief, the interior minister said the 
COAS had only drawn the government's attention to some issues. However, he 
declared that it was "totally wrong" to suggest, as some press reports had, 
that the COAS had proposed a postponement of the census.
The minister said all arrangements for the exercise had been completed and 
the troops, too, had been assigned their duties.
NA told about Pakistan's stand on CWC, CTBT 
Bureau Report
ISLAMABAD,Feb 25 : Foreign Minister Gohar Ayub Khan on Wednesday took the 
National Assembly into confidence over Pakistan's stand on the 
Comprehensive Test Ban Treaty (CTBT) and the Chemical Weapons Convention 
Pakistan had not signed the CTBT because of India's refusal to do so, he 
said. However, he added,the decision to sign the CWC had been taken after a 
careful appraisal of Pakistan's political, security and economic interests.

Allaying fears expressed by certain quarters about Pakistan's signing of 
the CWC, Mr Khan said: "All such apprehensions are based on 
misunderstanding and have apparently been aroused due to gaps in the basic 
information about the Convention."
The foreign minister said the decision was also consistent with Pakistan's 
traditional position on non-proliferation and disarmament issues.
He pointed out that the CWC was concluded after protracted multilateral 
negotiations at the Conference on Disarmament in Geneva and was opened for 
signature in Paris on Jan 13, 1993. He said Pakistan, along with more than 
a hundred countries,including India,Iran, China, Saudi Arabia, the US, 
Russia, France, Germany, the UK, Japan etc., had signed the Convention.
"The relevant provision of the Convention stipulates that it would be 
enforced after it has been ratified by 65 signatory states. Accordingly, 
the Convention came into force on April 29, 1997, for an unlimited 
"At present, 106 countries have ratified the Convention , out of more than 
168 signatory states. India ratified the Convention in September 1996. The 
US and China did so just before the Convention came into force in April 
1997. Iran and Russia acceded in the first week of November 1997. Pakistan 
ratified the Convention on Oct 28, 1997, which was subsequently approved by 
the cabinet.
"The CWC is the first comprehensive international treaty which provides for 
the elimination of an entire category of weapons of mass destruction. It 
has an unprecedented verification regime. The elaborate verification 
procedures are aimed to prevent secret chemical weapons activities by any 
state which can be detrimental to another country's security.
"According to Article I of the Convention, each state party undertakes 
never to develop, produce, acquire, retain, transfer, or use chemical 
weapons. Each state party also undertakes to destroy weapons and chemical 
weapons production facilities it owns or possesses. Furthermore,the 
Convention prohibits engagement in any military preparation to use chemical 
weapons or riot control agents as method of warfare.
"The Convention also stipulates an eventual ban on the exports of certain 
chemicals, which have widespread commercial applications, by states to the 
countries outside the Convention.This was one of the important 
considerations in favour of Pakistan's ratification. Remaining outside the 
Convention would have hamstrung our developing chemical industry. Non-
ratification would also have damaged our agriculture on account of 
restriction in imports of chemicals used in pesticides. On the positive 
side, Article XI of the Convention envisages co-operation among the state 
parties in the field of chemicals activities,including the international 
exchange of scientific and technical information and chemicals and 
equipment for the production, processing or use of chemicals for legitimate 
economic purposes.

Pakistan gets another waiver
Shaheen Sehbai
WASHINGTON, Feb 26: Pakistan got an unexpected waiver from drug-related 
sanctions on Thursday as the US State Department released its list of 
countries which had been decertified for not cooperating with the US to 
control drug trade in 1997.
The decision to issue a waiver by President Clinton came apparently after 
a deal between the State Department and the Pakistani authorities under 
which the sentence of convicted DEA employee Ayaz Baloch was reduced to 
five years.
As the State Department announced the list of countries which had been 
decertified for not cooperating on drug control measures, presidential 
waivers for Colombia, Pakistan and Belize were also announced, saving 
these countries from sanctions which could have included negative US votes 
for assistance given by the IMF and the World Bank.
Afghanistan, Burma, Nigeria and Iran remain on the list of decertified 
countries ineligible for most US assistance. Pakistan, Colombia and Belize 
have been decertified, but have been spared sanctions for national 
security reasons.
Other countries subject to the certification process were Aruba, the 
Bahamas, Bolivia, Brazil, Cambodia, China, the Dominican Republic, 
Ecuador, Guatemala, Haiti, Hong Kong, India, Jamaica, Laos, Malaysia, 
Panama, Paraguay, Peru, Taiwan, Thailand, Venezuela and Vietnam.
Syria and Lebanon were decertified last year but are no longer considered 
drug-problem countries because of successful opium poppy eradication 
Officials of the Pakistan embassy did not agree with suggestions that the 
US waiver had come after "a deal" between the two governments, but sources 
said intense discussions had been going on between the two sides for 
sometime on the issue.
Pakistan Ambassador Riaz Khokhar told Pakistani journalists that the 
waiver "is not what we expected" as, according to him, "Pakistan has done 
much better this year and expected a full certification by the State 
Diplomatic sources said the US Ambassador in Islamabad had delivered "a 
series of notes" to Pakistan on the Ayaz Baloch issue and had apparently 
linked the certification to his release by Pakistani authorities.
As a consequence, the Pakistani ambassador in Washington had several 
meetings with US officials and stated his government's position, saying 
Ayaz Baloch could not be released "just by picking up a phone or waving a 
hand", but he had to go through the due process of appeals and petitions.
In one such petition to the board, sources said, the sentence of Mr Baloch 
had already been cut by half and officials expected that as a quid pro quo 
for full certification by the US, the higher appellate authorities may 
answer his petitions positively.
Pakistan officials told the US authorities that Ayaz Baloch had been 
arrested not because of Pakistan but because of the US sting operation. 
"We have a democracy, rule of law, courts and institutions and Mr Baloch 

could not be released by the wave of a hand," US officials and congressmen 
were told by Pakistani diplomats.
"Is it fair for the US authorities to pressure Pakistan into subverting 
its own laws for one individual," was the Pakistani argument in meetings 
between the Pakistani ambassador, Attorney General Janet Reno, State 
Department officials and the Chairman of the Foreign Relations Committee 
of the House, Rep Benjamin Gillman.
Last minute efforts were also made by prominent Pakistani-Americans, 
including letters sent to President Clinton, NSC Adviser Sandy Berger and 
others by New York business tycoon Mansoor Ijaz, said to be the largest 
single Muslim donor to the Democratic Party election funds.
It was argued in these letters that from an American point of view, if 
sanctions were imposed on Pakistan now, especially when another Islamic 
country Iraq is under threat of a military strike, the entire Islamic 
world would be annoyed and pushed away from the US.
MQM takes back ultimatum
Staff Reporter
KARACHI, Feb 25: The Muttahida Qaumi Movement after an hour-long meeting 
with Prime Minister Nawaz Sharif on Wednesday took back the 24-hour 
ultimatum it had given to the government to arrest those behind the attack 
in Korangi which left eight people, including five of its workers, dead. 
The MQM had said on Tuesday if its demands were not met it would be forced 
to plan a future course of action vis-a-vis its position as an ally of the 
A delegation of the party's senior leaders also separately met the Sindh 
chief minister later in the evening and discussed the issue of "no-go" 
areas in the city. A handout after this meeting from the press secretary to 
the chief minister said that all "misunderstandings" between the PML and 
the MQM had been "removed".
MQM Senator Nasreen Jalil, who was part of the delegation which met the PM 
and later the chief minister told Dawn that the "air had been cleared" 
after the events of recent days although the MQM would still wait and see 
the steps taken by the government in the wake of the Korangi killings. For 
the time being, she said, the decisions taken by the party's coordination 
committee had been shelved.
The MQM said its decision to take back the 24-hour ultimatum had been taken 
after the prime minister gave "clear assurances" that the government would 
soon arrest the killers and take measures to prevent recurrence of similar 
incidents. The PM told the team that he had set his own deadline of March 5 
in the matter and if those responsible for the Korangi killing were not 
arrested by then he would come on a "special" visit to Karachi in that 
During the meeting, the MQM told the prime minister not to believe 
everything the intelligence agencies told him because they were "biased" 
against the party and were busy in a propaganda campaign against it. The 
prime minister told the MQM what he had told journalists in Islamabad after 

the MQM staged a protest walkout during President Rafiq Tarar's speech. 
Sources said he told them that the MQM should not have staged the walkout 
and could have discussed the matter at a proper less public forum while the 
MQM said that the government should have, at the very least, condoled with 
the party over the deaths of its workers.
The MQM later said in a statement that it would very soon meet the prime 
minister again on this issue. It said once the March 5 deadline expired the 
MQM would then wait for the PM's directives and then, even if nothing 
concrete happened, it would reserve the right to deliberate, if needed, a 
future line of action. 
HR groups seek protection for Riffat
Staff Reporter
KARACHI, Feb 25: Women and human rights groups held an emergency meeting on 
Wednesday which expressed support for Rifat Afridi's right to choose her 
own spouse without pressure from the community.
The meeting, called by Women's Action Forum, at the office of the Human 
Rights Commission of Pakistan described the Pashtoon girl's case as a human 
rights concern, symbolising a woman's right to make her own choice about 
her future.
They demanded that the authorities arrange for them to meet with Rifat in 
order to ascertain her point of view without any distortions.
The resolutions, drafted by WAF, said the sudden appearance of Niaz Bat 
claiming to be Rifat's husband 20 days after the initial reports of her 
marriage to Kunwar Ahsan, "appeared to be on second thought to embroil the 
girl and boy in further difficulties".
They condemned attempts to politicise the issue, saying that political 
parties ought to refrain from making provocative statements or issuing 
strike calls.
In particular, they criticised MNA Ejaz Shafi for congratulating the 
Pashtoons for a successful strike, saying that the PML (N) should take 
action against him or he should apologize for making such a statement.
In another resolution, the NGOs were critical that while the administration 
normally took little notice of ongoing violations against women, they had 
shown "unusual efficiency" in arresting the couple and bringing them before 
the court.
They demanded that the public should be allowed to hear the truth about the 
couple. At the same time, they demanded protection for them.
The groups represented on the occasion included War Against Rape, Shirkat 
Gah, Women's Peace Committee, Aurat Foundation, WAF and the HRCP.

ANP quits govt after talks fail
Raja Zulfikar
ISLAMABAD, Feb 25: Nearly a year-long alliance between the PML and the ANP 
ended on Wednesday night when government negotiators failed to win over 
their coalition partners on their Pakhtoonkhwa demand.

"Our alliance with the government now stands dissolved and we have parted 
ways," ANP President Ajmal Khattak told Dawn after the government's last-
ditch effort to convince the ANP proved unproductive.
The ANP leadership is scheduled to assemble in Peshawar on Thursday morning 
and is likely to announce resignations of its ministers from the 
government. "Who says Minister for Communications Azam Hoti will not 
resign?" said Mr Khattak in reply to a query, and added: "When the alliance 
is finished, everything is finished."
Begum Nasim Wali Khan, who was also here to monitor the situation, told 
reporters the government-ANP talks had broken down and the alliance was no 
longer intact. She said the ANP parliamentary party would decide the future 
line of action on Thursday.
Informed sources told Dawn the official negotiators had proposed in 
Wednesday's talks at the Frontier House here that the government would form 
a high-level constitutional committee to effect a change in the name of the 
province. They, however, did not accept the ANP's demand of naming the NWFP 
as Pakhtoonkhwa.
The official team comprised NWFP Chief Minister Mehtab Abbasi, Federal 
Minister for Kashmir Affairs Majeed Malik, Federal Minister for Inter-
provincial Coordination Committee Chaudhry Nisar Ali Khan and Federal 
Minister for Finance Sartaj Aziz. The ANP was represented by Begum Nasim 
Wali Khan, Senator Ajmal Khattak, Azam Hoti, Asfandyar Wali and Fareed 
Sources said when the government side had forwarded the proposal that the 
government would give any name to the NWFP other than Pakhtoonkhwa, the ANP 
leaders refused to listen to anything else. The meeting lasted 30 minutes.
The prime minister was informed immediately of the talks failure while the 
ANP informed the leadership in Peshawar of its decision. The ANP leaders 
are leaving for Peshawar early Thursday morning to have a grand meeting at 
which its MNAs, MPAs, and Senators will be present.
The ANP leaders said that after the government had turned down their demand 
to rename the NWFP as Pakhtoonkhwa, there was no justification to remain 
associated with it. 
They argued that with the exit of the ANP from the alliance, the government 
had also lost two-thirds majority in the Senate.
At Peshawar, the ANP would be finalizing details of how it would proceed in 
The resignations would be announced there. Ajmal Khattak said: "We will 
have a hundred per cent parting with the government." Provincial minister 
and ANP leader Fareed Toofan said the alliance had ended because the 
government had gone back on its promise of renaming the NWFP as 
Pakhtoonkhwa. "There is absolutely no doubt that this is all over now," he 

City to get additional water from March 23
By Our Staff Reporter
KARACHI, Feb 21: The city will start getting additional 100 mgd water 
supply on an experimental basis from March 23.

This was stated here on Saturday by Dr Farooq Sattar, the Local Bodies 
Minister who is also chairman of the KWSB while talking to newsmen after 
visiting the project site.
During his six-hour visit, the minister inspected the ongoing works and 
told the newsmen that 95 per cent of the work had been completed. The total 
cost of the project, he said, is Rs9 billion.
He expressed the hope that the city would completely start getting 
additional 100 mgd in the next summer season.
The project, he said, would be operational on an experimental basis in 
March and water supply would be increased gradually.
Dr Farooq expressed satisfaction over the pace of development work and 
directed the KWSB officials to complete the remaining works on an emergency 
He said that the water distribution formula would also be announced soon.
The minister visited the Guju Canal, Water Board Canal, siphon conduit, 
pump house, filter plant and the rising main.
He was accompanied by Brig Mansoor Ahmed, KWSB MD, Ms Shahida Chistie, 
special representative to the minister and other officials.
The minister was informed that Water board canal constructed at a cost of 
Rs 700 million had a capacity of 200 mgd water supply. The machinery for 
pumping house was imported from the UK at a cost of 31 million pounds 
Some 70 mgd will be supplied from the University Road Reservoir to old 
parts of the city and the remaining 30 mgd will be supplied from the water 
Pump F B areas to district central.

Benazir demands fresh polls
Ashraf Mumtaz
LAHORE, Feb 26: Opposition leader Benazir Bhutto has demanded fresh 
elections under the supervision of an all-party interim government as 
this, she claimed, was the only way to steer the country out of the 
multiple crises created by the PML government.
A greater alliance of the like-minded opposition parties could be formed, 
if other parties so wished, to mount pressure on the government, she 
declared. here on Thursday.
Responding to reporters' questions at the Nicholson Road residence of 
Nawabzada Nasrullah Khan after discussing with him the political situation 
in the country, Ms Bhutto said the government had failed on all fronts. It 
promised to bring down prices but those had gone up three times. It 
promised to provide jobs to the unemployed but it had started 
retrenchments. "Killings have become the order of the day in Karachi. The 
foreign policy has failed etc., "she added.
Ms Bhutto rejected the government's assertion that she was pursuing a 
hostile course to escape accountability.
She said if the government's point of view was accepted, then how would 
you explain the opposition by other political leaders who were not facing 
In fact, she said, she was facing the present situation because as prime 
minister she did not take appropriate action against Mian Nawaz Sharif and 

Senator Saifur Rehman and such other people and also did not start a media 
trial against them.
Pre-admission test to be introduced in all Sindh varsities: Moin
Staff Correspondent
HYDERABAD, Feb 26: The Governor of Sindh, Lt. Gen. (rtd) Moinuddin Haider, 
has said that it was indeed a happy augury that the people were fast 
becoming conscious of the importance of education and many an educational 
institution was being established in the private sector.
He said it was not possible for any government to shoulder the 
responsibility of education exclusively but the society was also 
responsible to share the responsibility in this noble cause.
The governor was inaugurating College of Modern Sciences, which coincided 
with the death centenary of Sir Syed Ahmad Khan, at unit No. 2 Latifabad 
here on Thursday.
He, however, was not satisfied with the quality of education and said that 
in 60s and 70s Pakistan used to compare itself with the advanced countries 
of the world but presently it was second last among the SAARC countries in 
the field of education only next to Nepal.
He said that Pakistani nation had great potential and educational 
institutions were being set up in the name of individuals or communities 
which was a good omen.
He said the government was also encouraging NGOs and private sector to 
contribute their bit in the spread of education.
He observed that in the past many a Madressahs and other educational 
institutions were established by the individuals and private bodies which 
imparted best education.
He said if government gave any grant to educational institutions it should 
be considered as a bonus.
He made it clear that he would not compromise on the quality of education.
Mr Haider regretted that the ratio of enrolment in the higher seats of 
learning throughout the country was only 150,000 and the quality of 
education was very poor.
He said that blackmail in examinations, cheating, violence and politics 
had become the order of the day in the educational institutions.
He said university education was not necessary for politics (no offence 
meant to the politicians) and added that if one wanted to indulge in 
politics then he better remain away from the university.
He said a seven point educational agenda had been formulated by him to 
improve the quality of education and regular meetings were being held to 
implement this agenda.
The governor pointed out that the mark sheets of matriculation and 
intermediate examinations were not the true reflection of the ability of 
the students as all and sundry knew how these marks were obtained.
No wonder, we are producing poor doctors and engineers, he said.
He said this was the main reason that the pre-admission test had been 
introduced in the Mehran University of Engineering and Technology, 
Jamshoro and Quaid-i-Awam University in Nawabshah. This test will also be 

introduced in all the other universities of Sindh step by step, he added.
1,600 teachers in non-existent schools of Sindh
Staff Reporter    

KARACHI, Feb 27: At least 1,600 teachers in Sindh have been drawing 
salaries for the last two years on nearly 3,000 schools that are closed and 
exist on paper only.
These teachers, both trained and untrained, have been appointed for 
primary, middle and secondary schools. They include 996 teachers in schools 
for boys.
Inquiries show that the number of these teachers had crossed 1,600 mark 
last year. There were 684 such teachers in 1994 and 1,099 in 1995.
The "ghost" workforce include 472 untrained teachers.
The largest number of such teachers is in primary schools (1,168), followed 
by secondary middle schools (346) and primary schools (105).
The total teaching staff of provincial government-run is over 148,000. They 
include 31,994 untrained teachers.
The number of teaching staff in urban areas is over 68,000, including 
10,922 untrained teachers.
In rural areas, there are 80,473 teachers, including 21,072 untrained 
Inquiries based on a document prepared by the Sindh Education Department 
show that 2,932 schools were either found closed and only on paper in the 
province and the status of almost all of these continued to remain the same 
even till today. The number of schools on paper is 395. These figures are 
the result of a verification exercise conducted last year.
These schools exist in all the 21 districts of the province with Larkana 
district topping the list with 288 schools, followed by Hyderabad (233), 
Badin (226), Mithi (221), Sanghar (217), Umerkot (211) and Dadu (206).
Two Iranian technicians shot dead in Karachi
Mohammad Riaz
KARACHI, Feb 21: Two Iranians working on the Clifton flyover project here 
were shot by two unknown assailants near the Clifton Bridge at 3.40pm on 
Saturday. Both died in hospital. They were employees of an Iranian 
construction company which is building the flyover.
The shooting, which occurred within a one-mile radius of the chief 
minister's house, the US consulate and three five-star hotels, coincided 
with the death anniversary of seven people, including the director of the 
Khana-i-Farhang-i-Iran (Iranian Cultural Centre), who were gunned down in 
Multan, exactly a year ago on Feb 21.
The then SSP of Multan, Ashraf Marth, who arrested the killers of Mohammad 
Ali Raheemi, the director of the centre, was himself shot and killed in 
Gujranwala by unknown assailants.
Those killed in the Karachi shooting on Saturday were identified as Murtaza 
Adeeb Zadey, 50, a foreman, and Ali Mohammad Habiby Zadey, 36, a 

storekeeper. They had been staying in flat 704 of the Clifton View 
apartment, off Chaudhri Khaliquzzaman Road in Clifton. They had arrived in 
Pakistan eight months back, and both hailed from Iraq Shehr in Iran. They 
were employees of the Masheen Sazi-i-Arak, an official construction company 
of Iran.
Eyewitnesses said two unknown young men riding a motorbike appeared under 
the Clifton bridge. They parked the bike and went straight to the flyover 
construction site and were seen speaking to their apparently targeted 
victims, perhaps to ascertain their identity.
After a brief chat, they pumped several bullets into their bodies, rushed 
back to the motorbike and sped away towards Bath Island.
25,000 community schools planned
ISLAMABAD, Feb 21: An informal inter-provincial meeting of education 
ministers, education secretaries and senior officials from the ministries 
of education was held here on Saturday, presided over by Dr Mahar Liaquat 
Ali, chairman of the PMLC.
Official sources said the meeting discussed the modalities regarding the 
expansion of primary education through non-formal basic education. A 
consensus was developed at the meeting that the target of universal primary 
education could be achieved by spreading NFBE and that within the shortest 
possible time.
Dr Liaquat Ali said the NFBE was a short-term measure to support the formal 
system of primary education. He said the PMLC would take care to ensure 
that the NFBE system would not become a standard substitute for the formal 
primary education system.
Kazi Khalid Ali, Sindh education minister, said that the Sindh government 
would give full support to the PMLC programme to achieve the target of 
universal primary education in the province.
According to the target chalked out by the PMLC, it planned to set up 
25,000 community schools across the country including the FANA, FATA and 
AJK during the next fiscal year.

Eight dead in Korangi shooting
Staff Reporter
KARACHI, Feb 22: Eight people, including two girls, were shot dead by 
unidentified gunmen outside a mosque in Korangi's R-Area on Sunday.
A spokesman for the Muttahida Qaumi Movement, Mr Mohammed Ahmed, claimed 
that six of the dead were workers of his party. He held the Mohajir Qaumi 
Movement (Afaq) responsible for the killing.
In Quaidabad scooterist opened fire into a crowd, injuring three people.
Eyewitnesses said some assailants fired indiscriminately into an alley near 
Tajul Masajid at R-Area, Korangi 1 1/2, and then sped down the alley on a 
Suzuki and motorcycles.
The victims were identified as Sardar (26), son of Ishtiaq, Imran (23), 
Haider Ali (28), son of Ghulam Mohammad, Nasir (22), son of Mohammad 

Farooq, Idrees (24), son of Ismail, Jaffar (30), Asma (16) and Saima (9).
The injured, who were brought to JPMC from Quaidabad, were identified as 
Zahid Ali, son of Irshad Ali, Sajid, son of Nawab, and Mohammad Asghar, son 
of Shabrati.
"Six people, who seemed to be in their 30s, were brought dead to the Jinnah 
Post-Graduate Medical Centre," said Dr Seemi Jamali, assistant director at 
the JPMC. All the dead and injured received multiple gunshot injuries, she 
Police officials said the shooting could be an act of "terrorism."
The JPMC saw moving scenes as wailing visitors crowded round bodies to 
identify relatives and friends.
Enraged workers of the Muttahida chased away police officials who had come 
to the hospital.

                 B U S I N E S S  &  E C O N O M Y
Dumping duty on Pakistani cotton
Parvaiz Ishfaq Rana
KARACHI, Feb 27: The European Commission (EC) had to put off its Feb 19, 
meeting amid fears that a move to impose provisional anti-dumping duty on 
import of unbleached cotton fabric (UCF) from Pakistan and other developing 
countries would receive resistance from some member countries.
According to a message received here from Brussels  headquarters to 
European Commission  efforts are currently under way for developing a 
consensus among 15-member countries on the issue before March 5, which is a 
new date fixed for the next meeting.
There are strong indications that the processing industry of the member 
countries of the European Union have put their foot down over the issue and 
are against the imposition of punitive duty on import of cotton grey fabric 
from developing countries, including Pakistan.
Despite the fact that the Anti-Dumping Committee of the commission have 
full powers to impose any rate of punitive duty, they fear a dissent from 
some members of the committee, local textile industry sources said.
In order to avoid "veto" from amongst its own members the commission has 
tried to gain some time by postponing the Feb 19, meeting fixed several 
weeks back, these sources added.
Chairman of All Pakistan Textile Mills Association (APTMA) Committee on 
anti-dumping duties and WTO affairs, Akber Sheikh has alleged that EU 
carries out investigations not purely on economic considerations, but on 
political grounds, as well.
To substantiate his arguments he said that currently efforts are afoot 
within EU not to include Turkey, who is Customs Union member of the 
European Union, in the on-going investigations.
He said within a short span of four years, the commission has for third 
time taken up the investigation proceedings based on injury and dumping 
against the exporters of UCF from Pakistan.
Akber Sheikh claimed that such biased investigations have not only caused 
commercial injury to our country but has also damaged it politically.

"In these four years, besides spending over a million dollars on 
investigations, our association has seen the perception in the mind of our 
public regarding the WTO anti-dumping law, change from a simple trade law 
to a tool of trade harassment  a white man's law  conveniently 
interpreted and unjustly applied by the European countries for the 
detriment of Asian and African countries," he observed.
Lashing out at the methods adopted by the investigating officials of EC, he 
said they want us to disclose all our trade secrets, but want us to rely on 
non-confidential versions given by their industry while framing a case 
against us for the imposition of anti-dumping duties.

IMF decision on 2nd tranche by mid-March

KARACHI, Feb 21: The IMF 'will most probably decide by mid-March in favour 
of release of second tranche of $208 million,' says a Merrill Lynch (ML) 
Based on six monthly data, ML has lowered the GDP estimates from 5% to 4.7% 
in light of sluggish demand in the economy and no recovery in the 
manufacturing sector (except sugar).IMF target for growth is 5.5%.
ML experts believe that inflation could fall much faster than generally 
anticipated (10-12%) in the light of current demand conditions and absence 
this year of cost-push pressures. (IMF target is 10.5%).
The budget deficit is expected to go up on account of a decline in the 
nominal GDP growth rate from 15% to 12.7% (IMF target is 5%). The lower 
nominal GDP target would effect a deterioration in debt problem.
The report says that economic policy appears to be directed towards 
stabilization despite governments pro-growth rhetoric. Inflation and the 
current account deficit appear to be relatively stable. Pakistan fiscal 
deficit and lack of external flexibility remain a concern.
ML experts however believe that Pakistan may not be able to adhere to its 
agreement with the IMF without an acceleration in the reform process and 
privatization. Many reforms passed todate remain to be executed with a more 
aggressive approach to strengthen the fiscal and external accounts. 
These include levy of GSt at retail stage, tax on farm incomes and 
reduction of quasi-fiscal burden posed by public sector utilities, 
(involving right sizing and tariff increases). The government is likely to 
commit to the IMF that it would move quickly on the reform front. A 
positive step is the restructuring of the tax collection and administration 

Defaulters fight back instead of repaying loans
Sultan Ahmed
THE THIRD and final deadline for repayment of defaulted bank loans of Rs 
127 billion at concessional rates expired on February 16 with barely six 
per cent of the loans recovered. No further extension of the deadline is 

proposed nor will it be desirable or productive.
During the seven months after the concessional repayment scheme was 
announced by the Governor of the State Bank of Pakistan Dr Muhammad Yaqub 
on June 6 last, only Rs 8 billion was repaid, including Rs 4 billion until 
the second deadline of December 5 and Rs 4 billion more before the second 
deadline this month. No serious notice was taken by the defaulters of the 
first deadline of September 5 last.
Now the public sector banks and development finance institutions are to 
move the courts to recover the loans of Rs 118 billion and have begun 
filing cases against 80,000 defaulters, after 35,000 had paid up.
Evidently they were the lesser defaulters as this number had repaid only Rs 
8 billion while 80,000 more have to repay Rs 118 billion. This is the big 
fish among the defaulters whom the banks have to net with the help of 
lawyers who are making big money from both the banks and the defaulters.
In fact the defaulters have hired the top lawyers and are paying them 
fabulous fees to void repayment or at least delay the large amounts as long 
as possible at a time when money costs around 20 per cent and the delay is 
worthwhile for them.
The United Bank says it has obtained 12,000 decrees from banking tribunals 
against the defaulters after the recovery campaign began, but their 
execution has been delayed.
The fact is, execution of the decrees and seizing the assets pledged or 
assets created through the loans is a tough task because of corruption in 
the banking sector and the police. How this major deterrent to recovery 
will be removed, and to what extent, remains to be seen.
When the SBP governor announced his scheme, he had said that 77 per cent of 
the cases were under litigation. How this legal tangle will be solved in an 
effective manner remains to be seen.
Five bills had been passed by Parliament before June 6 to expedite recovery 
of the loans. And yet the law has been found largely ineffective and then 
comes the stage of execution of the decrees which is delayed or frustrated 
through one means or another in the pervasive corrupt environment in 
The banks have been calling for a stringent law of foreclosure so that the 
banks can move in and seize the assets of the defaulters without having to 
move the courts and waiting indefinitely for results. But that law has not 
been passed. Hence the roadblock to effective or adequate recovery of the 
Small traders call for strike today
KARACHI, Feb 25: The All Pakistan Organization of Small Traders and Cottage 
Industries (APOSTCI) will observe shutter down strike on Thursday (Feb 26) 
against the levy of 3 per cent general sales tax (GST) at retail level.
However, a segment of traders have rejected the strike call given by 

Chairman, Alliance of Market Association (AMA), Atiq Mir, who claims hold 
of more 100 markets, announced his dissociation from the strike call.
Chairman, Pakistan Small Chamber of Commerce and Cottage Industry, Bashir 
Miandad said his members will stay away from the strike adding there is no 
justification for strike call when government has invited suggestions from 
traders for amending rules and regulations.
Chairman, Karachi Electronic Dealers Association, (KEDA) Mohammad Irfan and 
President, Karachi Motorcycle Dealers Association (KMDA), Sabir Shaikh said 
their members will open their shops on Thursday.
A press release of All Pakistan Organization of Small Traders and Cottage 
Industries (APOSTCI) claimed that more than 286 markets of the city will 
keep their shops closed on Thursday.
Chairman APOSTCI, Umer Sailya claimed various political and religious 
parties like Jamat Islami, Mohajir Itehad Tehrik, Tehrik-e-Insaf, People 
Party, Jamiat Ulmai Pakistan, PML (Functional and Junejo Group), Pasban and 
Shabab-e-Mili have also supported the strike call.
He said that neither we will collect the GST from the consumers nor will 
pay to the government.
President Karachi Chamber of Commerce and Industry (KCCI), Mohammad Hanif 
Janoo told newsmen on Wednesday that he had proposed the Prime Minister 
Nawaz Sharif in an informal chat on Tuesday to defer the GST till next 
The representatives of trade bodies will meet the Finance Minister Sartaj 
Aziz on 28th in Islamabad and the final decision on GST will be taken in 
March 2 meeting with the Prime Minister Nawaz Sharif.
Our Staff Reporter adds from Lahore: The strike against sales tax at the 
retail level called for Thursday is likely to draw a mixed response from 
traders in the provincial capital with the major, affected trade bodies 
staying away from it in the hope of a settlement with the government.
HBL sell-off to be initiated next month
Mohiuddin Aazim
KARACHI, Feb 24: The Privatization Commission is expected to launch 
international advertisements seeking bids for the proposed privatization of 
the state-run Habib Bank before the close of next month.
An indication to this effect came about during a meeting of the National 
Assembly's Standing Committee on Finance and Economic Affairs in Islamabad 
on Tuesday. The committee headed by Sardar Mansoor Hayat Tamman had met the 
HBL president Shaukat Tarin to receive a briefing.
A source privy to the briefing told Dawn by telephone from Islamabad that 
the Chairman of Privatization Commission, Khawaja Asif told the meeting 
that the global advertisements for HBL sell-off might be launched by end of 
March. Khawaja Asif had joined the meeting in his capacity as a member of 
the committee.
The source said Tarin told the committee that the new management of the 
bank was making every effort to enable it for privatization by June this 

year. "But he said it would depend much on recovery of stuck-up loans," the 
source said. HBL has a non-performing loan portfolio of about Rs 50 billion 
which needs to be cut down drastically in order to make it viable for the 
sell-off. The committee was told that the HBL made loan recoveries worth Rs 
3.5 billion during by the end of last year on its own, besides securing Rs 
6 billion worth of recovery commitments under the State Bank incentive 
scheme. The scheme expired on February 16.
$300m for balance of payment support
Ihtashamul Haque
ISLAMABAD, Feb 24: The Asian Development Bank will provide $300 million to 
Pakistan to help improve its balance of payment position.
"All the formalities  have almost been finalized for $300 million balance 
of payment support under trade, export and industry programme" said A. R. 
Akund, Host Director ADB.
Akund, who retired as Secretary Economic Affairs Division (EAD) and was now 
Pakistan's director on board ADB said, the bank has agreed, in principle, 
to offer $300 million loan which will primarily be used for improving 
balance of payment position.
He was speaking to reporters at a news conference alongwith Julian H. 
Payne, Executive Director of the ADB for Canada, Denmark, Finland, 
Netherlands, Norway and Sweden.
Payne was currently visiting Pakistan and had met the president, the prime 
minister, the finance minister and other senior officials and discussed 
with them bank's funding for Pakistan.
He said that Pakistan faced a big challenge to improve its economic and 
financial conditions specially after having witnessed the crisis of the 
South East Asian currencies.
"The Far East crisis will continue to affect Pakistan for sometime", he 
said adding that the major challenges Pakistan was facing in the 
implementation of its reforms programme.
He was asked what kinds of challenges Pakistan was facing. "There are 
challenges to increase foreign investment flows and enhance trade and 
business activities", he said.
Payne advised Pakistan to achieve the objectives of good governance. He was 
of the view that accountability and transparency must be ensured to help 
remove various problems. He appreciated that the government was trying to 
address fundamental issues in Pakistan.
Responding to a question he said, he was in Pakistan to have a first hand 
information about the economy and various ADB assisted projects. He said he 
was leading a team which will also visit Karachi, Peshawar and Lahore.
Asked whether he has discussed new funding line for Pakistan other than 
$250 million Capital Market Development Loan and $250 million legal reform 
package, he said. " In fact I am here to know about various issues".
To another question, he said, Pakistan needed to allocate counterpart 
financing for foreign-funded projects so that they could be completed in 

He told a reporter that the ADB has disbursed first tranche of $125 
million, out of $250 million capital market development loan in January 
this year.
The Executive Director of the ADB also pointed out that Pakistan should 
make further efforts to implement IMF's ESAF programme. "Our assistance to 
Pakistan is in line with the IMF funding".
He said Pakistan's Social Action Programme (SAP) was an important plan to 
improve broad social indicators in the country.
CBR to be put on WWW today
Ikram Hoti
ISLAMABAD, Feb 26: The Central Board of Revenue will be put on the 
Worldwide Web (WWW) on Friday.
Arrangements have been made for supply of facts and figures to the 
internet watchers on the CBR monitoring of imports into and exports from 
Pakistan, tariff rates and changes notified, Statutory Regulation Orders 
(SROs) issued by the CBR from time to time, and the fiscal policies as 
interpreted and implemented by the CBR.
The CBR would also entertain questions for providing answers to the 
internet watchers on taxes in Pakistan, apart from receiving a calendar on 
tax implementation in the financial year, containing rates, dates, places 
of deposit/filing etc. "This step is part of transparency in the 
implementation of procedural aspects of the tax policy, the 
rationalization of the tariff rate reduction under the federal budget 
1997-98, restructuring of the CBR into Revenue Service of Pakistan, and 
the vision being applied for tax implementation under the restructured 
RSP", said an official.
He explained to Dawn that apart from these steps, the CBR is also shifting 
the emphasis on implementation and coordination (of tax-heads) from the 
manual operations to automation.
"The new chairman of CBR, Moinuddin Khan, has instructed the relevant 
officials to pool the entire work so far carried out on the automation of 
taxes, into a plan for re-engineering of the tax collection and monitoring 
processes", he added.
WAPDA asked to release funds
TOBA TEK SINGH, Feb 21: Chairman Public Accounts Committee (PAC) of the 
National Assembly and MNA from Gojra, Mr M. Hamza has urged the chairman 
WAPDA to immediately release funds of Rs 50 million which has been 
allocated for a scheme of WAPDA to eradicate waterlogging and salinity in 
Gojra and Toba Tek Singh sub-divisions.
Addressing a meeting of development committee on Saturday in the office of 
assistant commissioner, Mr Hamza said that if this scheme was not 
immediately started, hundreds of acres of valuable agricultural land would 
go barren and the farmers of the area would be forced to leave the area 
because there would be a big decline in the production of crops owing to 

these factors.
He directed deputy commissioner Toba Tek Singh who was also present in the 
meeting to expedite completion of drinking water supply scheme for Gojra, 
for which provincial government had already earmarked an amount of Rs 2.8 
million. He stressed the need of construction of a two kilometres piece of 
road between Pacca Anna and Sir Shameer railway stations which would enable 
the people to go to Lahore and Faisalabad on a route which would be 35 
kilometres shorter than the previous route.
Addressing the meeting MPA from Gojra Mr Ghulam Bari apprised that 
commissioner Faisalabad had recently issued a special grant of Rs 1.5 
million from sugarcane cess funds for the construction of Gojra-Samundari 

Rs1 billion revenue shortfall in 7 months
Ahmad Hassan
PESHAWAR, Feb 25: The NWFP government has suffered a cumulative shortfall 
of Rs one billion in recovery of its own revenue in the first seven months 
of the current fiscal year. According to an official source, the recent 
meeting chaired by the chief minister was told that only about Rs 1.7 
billion out of projected Rs 2.7 billion were collected.
All the tax collecting departments of the provincial government have 
reportedly shown no signs of improvement.
Sources said falling provincial receipts would make the liquidity crunch 
more serious in view of the continuous shortfall in payments from the 
federal government both on account of net profits income of hydel power 
generation and federal divisible pool assignments.
Although the chief minister had expressed his optimism about the settlement 
of net profits income with the WAPDA in his recent chat with newsmen, the 
ground realities are otherwise.
Inside sources in the finance department express their pessimism about the 
early settlement of the issue as no meeting has so far been held in last 
over one month between the special team of NWFP government, WAPDA and the 
auditor general which was agreed upon in preliminary meeting in Islamabad 
in January last. 
According to high placed sources, the major portion of the shortfall stems 
from the farm income tax which the field officers (DCs and their 
subordinate staff) have either failed to recover or have shown a fair 
amount of lethargy/negligence.
The NWFP Chief Minister, Sardar Mahtab Ahmed Khan, who also holds the 
portfolio of finance has been showing his grave concern in the monthly 
meetings over declining recoveries. In last week's meeting, which was 
attended by chief secretary, home secretary and other high ranking 
officials of the administrations the chief minister ordered constitution of 
a high-level committee to be headed by the chief secretary to accelerate 
the process of recovery of the agriculture income tax. 
The committee, according to insiders was bewildered to note that only 0.5 
million rupees had been recovered from agriculture income tax and decided 

to put further emphasis on collection of revenue.
Index loses 32 points on heavy foreign selling in PTCL
Staff Reporter
KARACHI, Feb 27: Heavy foreign selling in PTCL on Friday further 
intensified the current bear-run on the stock market but there were no 
matching buying offers owing to political uncertainty after the exit of ANP 
from the ruling elite. The index lost another 32 points or Rs 8 billion in 
market capitalization.
PTCL was marked sharply down by Rs 1.30 on a massive volume of 26 million 
shares, which was more than half of the day's total.
Analysts attributed the sell-off to reports that the Privatization 
Commission has deferred the decision to appoint financial adviser for its 
sell-off to some strategic foreign buyer.
Some of the leading shares in the bank and energy sectors did attract 
modest support at the dips but it appeared difficult to absorb bulk of the 
Dividend news from the sugar sector, notably Habib Sugar, Mirpurkhas Sugar 
and Mehran Sugar, were in line with market perceptions but investors were 
overwhelmed by external developments, analysts said.
Others might follow the higher rate of return of Mehmood Textiles, which 
came out with a cash dividend of 10 per cent plus bonus shares of 15 per 
cent, and 45 per cent from Dawood Cotton but there is an optimism in the 
rings that some leading textile shares could do that, they added.
"The market is victim of both the weekend selling and emerging political 
situation and no one could precisely predict how it will behave in the 
coming sessions," analysts said.
However, it is widely speculated that the current bearish spell could be 
much longer as a combination of negative factors have combined in one, they 
Institutional traders did emerge on the scene to forestall panic selling 
but it was too feeble to stem the wrought, said a leading broker.
The KSE 100-share index suffered a fresh fall of 31.56 points at 1,650.27 
as compared to 1,683.81 a day earlier, wiping out Rs 8 billion from the 
market capitalization at Rs 502.00 billion.
Although the broader market ruled distinctly easy on renewed selling, bank 
and energy shares came in for active support at the falling prices and 
managed to finish partially recovered under the lead of Faysal Bank and 
MCB, Southern Electric, Kohinoor Energy.
However, the leading among them fell under the lead of PSO, Shell Pakistan 
and National Refinery. Fidelity Bank, IGI and Jahangir Siddiqui were among 
the other prominent gainers.
Adamjee Insurance, Fauji Fertilizer, Hoechst Marion, Pakistan Gum 
Chemicals, Engro Chemical and Dadabhoy Insurance led the list of losers 
under the lead of Lever Brothers, which fell by Rs 44 on active selling.
DEFAULTING COMPANIES: Trading on this counter was mixed as investors played 
on both sides of the fence.

While Sunrise Textiles and Allied Motors were traded lower by 10 to 45 
paisa on 500 and 3,500 shares respectively, Rex Baren Battery managed to 
finish higher by 25 paisa on 500 shares, National Modaraba, Sunshine Cloth 
and Suzuki Motorcycle were held unchanged on 500 shares each.
DIVIDEND: Dawood Cotton, cash 45 per cent, Habib Sugar, bonus shares 12.5 
per cent, Mehmood Textiles, cash 10 per cent, bonus 15 per cent, Mirpurkhas 
Sugar, 15 per cent, Mehran Sugar, 12.5 per cent, Zaman Textiles, Johnsons & 
Philips, PICIC, Alhamd Textiles and Ravi Alkalis, all nil.

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              E D I T O R I A L S  &  F E A T U R E S
The second Tumandar                          
Ardeshir Cowasjee
THE second Tumandar of the Dera Ghazi Khan district of Punjab, Farooq Ahmad 
Khan Leghari of Choti, on December 2, 1997, descended from Margallian 
heights and touched ground level in Karachi this week. He met people at 
public fora, and privately, and was questioned. His strength lies in his 
ability to answer, when asked about certain acts of commission or omission 
publicly perceived to be not quite 'kosher', "I am human, I am not perfect. 
I have made mistakes which I regret."
Politics in this land is a dirty game, becoming murkier by the day. The 
vast majority of the population is purposefully kept illiterate, it being 
recognised that this suits our particular corrupt greedy vote- seekers. Our 
prime minister, Nawaz Sharif, has fully endorsed this theory by appointing 
as minister of education a man of the calibre of Ghous Ali Shah.
The elected uneducated, with feudal mindset and family-combos, who since 
1988 have ruled over, damaged and impoverished this country  progressing 

from 'worst' to 'worse' to 'bad'  are Benazir Bhutto plus husband plus 
father-in-law; Nawaz Sharif plus brother plus father plus Chaudhris; Ghulam 
Ishaq Khan plus sons- in-law; Leghari plus cousins (admittedly, the last 
lot cannot be held guilty of any monumentally damaging blunders or of 
bankrupting the country). Helpless as we are, we can only cling to straws.
Whilst in Karachi, Leghari and I had a candid exchange of views. He also 
gave me a cassette recording of his extempore resignation speech. After 
seeing it and hearing him, it was absolutely clear why Nawaz Sharif had the 
foresight to refuse to have it telecast live, or to show a recording at a 
later date. What is not understandable is why the press did not print it 
anywhere near in full.
You have dealt with both Benazir Bhutto and Nawaz Sharif, I told Leghari. 
Is either capable of surviving an independent judiciary? His one-word 
answer: No.
    In his resignation speech he states that he had no problems with either 
prime minister on a personal basis, but he did have a problem with both on 
the question of "upholding the supremacy of the Constitution, the 
judiciary, and the rule of law. Both wanted to subjugate the judiciary. 
Both felt insecure. One, despite having a friend and former partyman as 
president, perhaps because of Article 58(2)(b). The other, despite the 
removal of 58(2)(b), perhaps because he had a president who was helpful in 
providing whatever advice he sought for good governance."
Whether or not the Thirteenth Amendment is there, whether Article 58(2)(b) 
is there or not, is of little consequence, I told Leghari. Remember how 
COAS General Waheed Kakar, without even considering the existence of 
58(2)(b), without alerting 111 Brigade, without contemplating martial law, 
went to dinner at the Aiwan one evening with not even his swagger stick 
under his arm. Before the main course was served, Nawaz Sharif had gone 
home to Lahore. Before he had finished his ice-cream, Ghulam Ishaq Khan was 
back in Peshawar.
Now, Nawaz Sharif, having subjugated and tamed the judiciary, will make the 
same mistake as did Bhutto and choose the sixth general in line, using his 
own yardstick of merit, and make him the next COAS. This man is more likely 
to send him home than the first in line, in order of seniority, Ali Kuli 
Khan, or even the second, or the third, Khalid Nawaz or Pervaiz Musharraf.
Do you think, I asked Leghari, that Nawaz Sharif, with his mindset, has any 
feeling or care for the integrity and defence of the country, or for its 
people? When Bhutto had the choice between leading the opposition in the 
Pakistan of 1970 or being top-dog in a dismembered Pakistan, he chose the 
latter. Were Nawaz Sharif to be put in the same situation right now, and be 
given the choice between being King of Punjab or number two in Pakistan as 
it is, which do you think he would opt for? The kingdom, was Leghari's 
answer, as was mine.
You want to form a party, I said to him. Not easy. Where do you find 
staunch solid people with a clean slate who will stand by you? Can you name 
five? He was silent. Your good friends, parliamentarians Chandi and Fakhr, 

signed your impeachment papers. And you made your best friend, Shahid 
Hamid, a caretaker minister and then you made him governor of Punjab. 
Should he not have resigned with you? Before nightfall on December 2, was 
he not found sitting in Nawaz Sharif's lap?
To his credit, the first Tumandar of Balochistan, Nawab Mohammad Akbar 
Shahbaz Khan Bugti, refused to support your impeachment motion. It was his 
'fitrat', Bugti tells me, that made him desist. And whilst speaking of 
Bugti, I said to Leghari, I was with him in Islamabad on December 1 when I 
misread you. I wagered with him that you would call Nawaz Sharif's bluff 
and fight it out with the subjugators of the judiciary. He took me on, 
saying you would resign.
You have a firm base, you obtained the largest number of votes amongst all 
those elected in 1993. Why don't you get back to the National Assembly? You 
need not worry about any 14th Amendment. Each time the bought majority does 
wrong, you can dissent, and have your dissent recorded along with your 
reasons. Then, the power-hungry megalomaniacs will not be able to claim 
that their wicked amendments and laws were passed unanimously. Those with 
sense and perception will always firstly read the dissenter's views. People 
recognize honesty. A dissenter gains support, offering alternative 
leadership, motivating an 'in- house' change for the better. I hope this 
will germinate in his mind. Resistance to wrong, at every step taken, is 
what makes for good democracy.
The people must hear him on the subject he well knows  the subjugation and 
politicization of the judiciary by the politicians that rule over this 
sorry land. Farooq Leghari's resignation speech, neither written down nor 
doctored by after- thoughts, contains an indictment of those who have done 
serious damage to the judiciary. As Farooq Leghari puts it, "the repository 
and the guarantor of the people's freedoms and the rule of law" has been 
damaged and reduced to tatters by the machinatons of Nawaz Sharif and his 
What was Leghari's successor in office, Rafiq Tarar, doing in Quetta on the 
day the order suspending Chief Justice Sajjad Ali Shah was handed down by 
the Quetta Bench of the Supreme Court? Why did Tarar and two others fly to 
Quetta in a special plane on that disastrous day? Leghari is right. 
Questions are being asked. Why were the police at the Quetta airport 
ordered not to manifest his arrival (which instructions they in fact 
manifested)? Where did Tarar stay on the night of November 26 (his 
departure on November 27 having been manifested by the airport police)? 
What reward was he given for his day's efforts?
Why, on January 20, was a story leaked by the government to the press about 
the obstruction of justice early in 1997 in an alleged rape case involving 
a servant in the then Justice Ajmal Mian's Karachi house when he, as CJ, 
was presiding over the bench hearing contempt of court cases against Nawaz 
Sharif and others? Why were stories leaked about the foreign sholarship 
sponsored by the government to the wife of the good J-1 Saeeduzzaman 
Siddiqui? Why is the Muslim League inner circle boasting that the 'package' 

will facilitate the appointment of J-2 as the next Chief Justice of 
Pakistan? Why are these government-inspired attempts being made to 
discredit these honourable judges?
On February 19, I sent a letter to Mr M. A. Latif, Registrar of the Supreme 
Court of Pakistan :
"Sent herewith is a video cassette of the resignation speech made by 
President Farooq Ahmad Khan Leghari on December 2, 1997, which the 
Government of Prime Minister Nawaz Sharif refused to telecast live or to 
later telecast a recording. Nor was the speech published in full by the 
national press.
"The speech contains references to the 13th, 14th and 15th Amendments to 
the Constitution, to the contempt of court committed by the Prime Minister 
and others of his government, to the storming and the desecretion of the 
Supreme Court by the 'goons and parliamentarians of the ruling party' on 
November 28, 1997, (against which and whom no action has so far been 
taken), and to other relevant vitally pertinent issues which the Supreme 
Court is presently adjudicating.
"Would you please hand over this cassette to Chief Justice Ajmal Mian 
enabling him to take such immediate appropriate action as he may deem 
"It may also be conveyed to the honourable Chief Justice that on February 
18, when the former President addressed the members of the Karachi Press 
Club, I publicly asked him if he would be prepared to testify in the Court 
and reaffirm under oath all that he had stated that day. He answered in the 
affirmative. He is prepared to reaffirm and be questioned."

Slow train to nowhere                               
Irfan Husain
BY sheer coincidence, the current issue of the Economist, London, carries a 
long article on the latest developments in rail technology, and the huge 
investments that are being made in railway systems around the world.
A few days ago, Eqbal Ahmed, my friend, was in town and suggested that I do 
a piece on our railway, and the neglect it has been subjected to. "You've 
worked for Pakistan Railways for a number of years, so why don't you write 
about its decline?" I was non-committal, and filed the topic away as a 
possibility for a time when I was out of ideas. For this Saturday, I was 
all set to do a column on Nawaz Sharif's disastrous year in office. But 
when I saw the Economist article, I had the perfect peg to hang my piece 
on, so here goes.
At Partition, Pakistan was fortunate enough to inherit a well-run railway 
system then known as the North Western Railway. With a network of over 
8,000 kilometres, it connected all the major cities, and functioned as the 
prime mover of passengers and goods. Its morale and prestige were high, and 
for nearly twenty years, it was a relatively profitable, well-managed 
public sector enterprise.
Around the mid-sixties, the government began to focus more and more on road 
and air transport, neglecting the re-named Pakistan Western Railway. So 

much so that the electrification of the mainline stopped dead after the 
Lahore-Khanewal section was energised around 1967. And since 1947, not a 
single-track kilometre has been added, despite the desperate need to have a 
double track, at least on the mainline.
Apart from official neglect and lack of funds, the system is top-heavy, 
overstaffed and mismanaged. Corruption has reduced the impact of whatever 
was invested, and its professionalism has been eroded by the induction of 
large numbers of incompetent officers and staff.
And yet rail transport remains the cheapest and among the safest modes of 
transport. According to a Japanese study quoted in the Economist, a private 
van consumes twenty times as much fuel in carrying one tonne of cargo over 
one kilometre as a goods train; and a large commercial truck consumes five 
times as much. Travelling by car is nearly eight times as hazardous as 
train travel. However, since these safety statistics are based on UK study, 
I would think cars are even more lethal in Pakistan.
Apart from cost and safety considerations, what is driving the current 
revival of the railways in Europe, the Unites States and Japan is the 
congestion and pollution caused by cars and trucks. As a consequence, 
several countries are now attempting to curb and discourage road vehicles. 
Many European cities no longer allow cars into city centres; France has 
slapped a ban on the movement of trucks on its motorways on Sundays; and 
increasingly, road-user charges are being electronically levied on cars.
This trend is forcing more and more people to use trains that are now fast 
and very reliable. Many European and Japanese trains now whiz along at 
speeds in excess of 150 miles per hour. Japan is currently testing a 
magnetically levitated train that hurtles along at 350 mph.
As usual, the trend in Pakistan is the very opposite to what is happening 
elsewhere. Here, train usage is actually declining, at least for freight. 
In 1994-95, Pakistan Railway carried 7.365 million tonnes; this figure 
declined to 6.854 in 1995-96. In the same period, the number of locomotives 
fell from 639 to 622, and the number of freight wagons from 28,525 to 
26,755. Since freight is the bread and butter of the railways, it is not 
surprising that the gross earnings fell from Rs 9.7 billion to Rs 8.4 
billion over just one year.
I must say that my fairly long stint with the railways was a pleasant one. 
Although I worked in the finance and accounts department, I spent a lot of 
time with engineers and, by and large, they were a very professional bunch. 
The main weakness lay in the commercial department that was manned by 
people who had no clue about marketing and sales. Of course, the problem 
was that they were so used to customers begging and bribing them for wagons 
and tickets, that when faced with competition from trucks and PIA, they 
could not adapt. And, of course, being a government department, there is 
simply no incentive for them to sell seats and cargo space: whether they do 
or not, they will still get paid at the end of the month.

The result of these attitudes and decades of under-investment is that the 
whole system is now so rundown and ramshackle that it will take enormous 
amounts of money to put it back on track. For instance, this newspaper 
recently carried a horrifying story about a number of passengers who died 
because the rotten floor of their carriage collapsed under them as the 
train was moving at high speed.
But more than just money, the quality of the senior management will have to 
be upgraded. Many years ago, when British Rail was in a total mess, the 
government brought in a chartered accountant on a five-year contract, gave 
him support and a free hand. Very soon, he turned the organisation around 
and restored public confidence in it.
I have always held that in a country where public opinion counts for so 
little, only those public sector institutions that are used by the elite do 
well. For instance, the public health and educational systems are in a 
shambles because the well-to-do and those in positions of authority don't 
use them. PIA, on the other hand, is still functioning because generals, 
ministers, senior civil servants and millionaires regularly use its 
domestic service. Applying this yardstick, when did you last travel by 
And yet, not too long ago, railway travel had a certain mystique. Hampers 
would be packed for an overnight journey, and as a kid, I remember the 
excitement of watching the countryside roll by. This simple pleasure, like 
so much else, is gone forever. However, I am advocating the revival of the 
railway not for nostalgic reasons, but for very prosaic ones.
The fact is that the railway is the cheapest and most environment-friendly 
way of moving heavy volumes of freight and large numbers of people over 
long distances. And given Pakistan's geography, this is the most logical 
base for our future transport strategy. Indeed, had a fraction of the money 
spent on the absurd motorway project been invested in the railway's track 
and locomotive fleet, it would be in far better shape today.
But logic has never been the strong suit of those in charge of our 
country's sad destiny, and I am afraid that like so much else that was 
worth saving and building upon, the railway, too, is doomed to extinction.

Time for impartial assessment
Saiyid Ali Naqvi
IT WAS the peak of electioneering when Dawn of January 7, 1997 carried a 
news headlined: "Nawaz pledges to settle Kalabagh dam issue." The PML(N) 
president was reported to have told the reporters at a press conference 
that his party would seek national consensus on the controversial question 
of construction of Kalabagh Dam.
Mr Nawaz Sharif has been at the helm of the country as the most powerful 
prime minister this country has seen in its 50 years existence as an 
independent national state, yet unfreezing of the Kalabagh issue is 
nowhere in sight. In his televised inaugural address at a conference held 

on February 9 on the "Need and Role of Storage Reservoirs in Pakistan," he 
called for developing consensus on building infrastructure "like dams, 
power houses, canals, drains", without mentioning Kalabagh dam. While he 
acknowledged the imperative need for utilizing the potential of Indus 
River for sustainable welfare of the people, the prime minister also 
pointed out that it would be counterproductive to underrate the 
difficulties in undertaking the tasks required for this purpose.
Undoubtedly, it would be counterproductive to underrate the difficulties 
that the government would encounter in dealing with the political, social 
and environmental concerns which have been raised and agitated from 
various platforms and in the media against Kalabagh dam. But, equally 
counterproductive would be the policy of doing nothing and letting the 
state of indecision continue under the dictum of letting the sleeping dog 
The task of national consensus-building would certainly be an uphill task, 
and, hence, it cannot be expected to be accomplished quickly. However, 
what is urgently needed is a decision to start the consensus-building 
process. As a first step, the present deadlock would need to be broken by 
having an assessment of the project carried out by an impartial forum of 
globally recognized experts. As discussed later in this article, the most 
appropriate forum for this purpose is the recently established World 
Commission on Dams. 
Experts say that a GDP growth rate of 7-8% per annum is needed to overcome 
the social and economic problems plaguing the country. The modest GDP 
growth rates of 5.3% per annum over the period 1994-2002, and 5.6% per 
annum over the period 2002-2010, assumed for a base case in a 1995 World 
Bank's load forecast study suggested that the power generation capacity 
would need to be raised from 11,497 MW in 1994 to 31,625 MW by 2010 (an 
increase of 20,128 MW over a period of 16 years. Of this, 9,770 MW was 
projected to materialize by 2002, including 1,634 MW of hydropower 
capacity relating to 1,450 MW Ghazi-Barotha and 184 MW Chshma hydropower 
projects). Therefore, to support a GDP growth of 7-8% per annum, a 
realistic and least-cost power generation expansion programme would need 
to aim at raising the system capacity to a level higher than 31,625 MW by 
Clearly, a major multipurpose dam project would need to be the centrepiece 
of the required power generation and irrigation water augmentation 
programme for the next decade. Since we are virtually standing at the 
threshold of the next decade (the first decade of the 21st century), there 
is an undeniable urgency for deciding whether Kalabagh dam will in fact be 
the most appropriate available option for the required multipurpose 
project in terms of economic benefits, determined after taking into 
account full environmental and social costs.
Now, by virtue of the fact that its feasibility study as well as detailed 
engineering has been completed, Kalabagh dam project is virtually ready 
for construction. If construction was started as soon as possible, the dam 
and the power station would be completed within the next decade, thereby, 

providing the country with 6.1 MAF of additional storage capacity and 
3,600 MW of additional hydropower capacity before 2010.
But, although Kalabagh is an adequately prepared project from the 
engineering perspective, there are a host of issues regarding social and 
environmental impacts of the dam which would need to be resolved before 
the project can qualify for national and international endorsements.
These issues have been debated at various forums and in the print media. 
But rather than resolving the issues, these debates have led to 
polarization between "pro-dam" and "anti-dam" groups, resulting in a 
virtual deadlock.
However, a window of opportunity for breaking the deadlock over Kalabagh 
dam debate has been opened by the establishment of the World Commission on 
Dams as a result of a joint initiative of the World Bank Group and IUCN-
The World Conservation Union. This initiative was undertaken by the two 
world organizations to break the deadlock in the global large-dam debate, 
which had resulted from polarization between opponents and proponents of 
large dams. While the proponents emphasized the economic benefits of dams, 
the opponents argued that the project sponsors systematically downplayed 
the adverse social, environmental and economic impacts of dams.
Controversies surrounding large dam projects, such as the Narmada Dam in 
India and the Three Gorges Dam in China, brought into focus the conflicts 
facing governments, financing institutions and private developers when 
coming up against resistance from civil society organizations, affected 
communities and environmentalists.
To break the impasse, the World Bank Group and IUCN-The World Conservation 
Union jointly hosted a workshop in April 1997 in Gland, Switzerland. The 
workshop brought together leading experts and representatives of major 
stakeholder groups to initiate an open and transparent dialogue. The 
participants were 29 stakeholder representatives of governments, civil 
society organizations, international financial institutions and the 
private sector.
They included representatives from developing countries where 
controversial dams were being built, or, were proposed to be built, viz. 
India, China, Laos, Columbia, Senegal, Ghana, Lesotho, Brazil, Paraguay, 
and also from industrialized countries, viz.: the United States, Great 
Britain, Germany, France, Switzerland, Sweden and Canada. There was no 
representative from Pakistan, probably because Kalabagh, which was lying 
in cold storage, had not attracted the attention of the pro-dam and anti-
dam groups involved in the global large-dam debate.
Nawaz Sharif's China visit
M.B. Naqvi
GOVERNMENT publicists are at pains to describe Prime Minister Mian Nawaz 
Sharif's week-long China visit as 'highly successful', the standard claim 
about all such foreign trips. But there is no mistaking a sense of 
disappointment among those who, suffering from a dependency syndrome, 

always expect Pakistan's foreign friends to dole out some aid. There is not 
a word of it; only wish for more trade and possible investments.
For one thing, there was no joint statement at the end of the visit. The 
Pakistan side made do with its own statement. Now, the issuing of joint 
communique or statement is not de rigueur; frequently it is not thought 
necessary. In what conditions is it considered superfluous? When 
understanding between the two sides is well recognized and profound or when 
there is such a lack of it that recording so many differences is found to 
be embarrassing. In any case, neither government is likely to explain and 
there is no point in needless speculation; reassurances of the friendship 
there are aplenty in the delightful banquets' speeches by the top Chinese 
It will be hard to claim that the Chinese attitude and stance toward 
Pakistan is the same as it was in the 1960s and 1970s; much water has flown 
down the bridges since then. China was then isolated and ties with Pakistan 
provided it with a serviceable window on western world and it proved to be 
a bridge between China and the US. Now, China's friendship and cooperation 
is eagerly sought by all major powers; its huge, and rapidly growing 
economy is a magnet that is pulling all great powers to it.
China's own self-perception and policies have also changed. The year 1978 
was a watershed when Deng Xiaopeng had finally succeeded Mao Zedong. While 
during the latter's rule, Chinese policies were driven by strategic 
considerations and indeed the realpolitik of statesmen committed to long-
term objectives. China had decided it needed Pakistan as a firm and long-
term friend in South Asia for a variety of reasons, including for balancing 
the growing power of India. It asked nothing in return for all the 
substantial aid  economic, military and technical, much of it grant  it 
gave to Pakistan. It supported Pakistan on Kashmir in an in an unstinted 
manner, though theory and hard realities on the ground made it slightly 
modify its position in 1974.
But Deng's realistic goals, no less strategic or long-term in nature, were 
reflected in his Four Modernizations. They aimed at making China a 
powerhouse both in an economic and political- military sense. With its 
Communist past and basic nature, its PLA (People's Liberation Army) is not 
oriented to operating outside China. Nor is its experiment with controlled 
capitalism and high growth creating an expansionist force. But the Deng 
programme has wrought major changes in foreign policy.
To begin with, Chinese policy-making apparatus has become more inward-
looking, giving top priority to economic construction and reform at home. 
It wants to reduce its own foreign involvements to the minimum, consciously 
wanting a period of peace even at the cost of not actively pressing its 
border disputes with Russia, Vietnam and India. Lately, China has chosen a 
somewhat higher- profile role in Asia  mainly to correct the distortions 
introduced by America being the sole superpower and the attenuation in the 
power and effectiveness of Russia, as a result of communism's and the 

Soviet Union's collapse. 
It has necessarily to play a more dominant rather than a peace-promoting 
role in slabilizing Asia. It has to befriend and take along all major Asian 
states, with many of whom it has had historical quarrels: Japan, Korea, 
Vietnam, Russia, India, Iran and Central Asian republics (CARs). It can 
scarcely want to get entangled in regional disputes, if it can help it.
The Chinese economy, on the other hand, requires good working relations 
with the US. Its annual exports to America are of the order of $ 50 
billion, yielding $ 14-15 billion surplus. Beijing thus wants nothing so 
much as a permanent MFN (most favoured nation) status in the US. It also 
wants the membership of the WTO, IMF and other multilateral agencies. 
Diehard communist baiters in the US stand in the way of China getting this 
status or membership. But it wants these things to win over the majority of 
the US Congress with the help of the White House.
It is for Pakistan to think and decide where it comes in  or gets off  in 
the light of this orientation of the Chinese policies. Can China go against 
its own interests? This rules out China's further cooperation with this 
country in the nuclear and missile development fields that fall foul of any 
of those treaties and controls. Although PM Sharif had taken along senior 
defence officials, no specific defence-related agreement was signed.
Anyhow, Pakistanis are required to read the international situation more 
objectively and to do some introspection over how have the Chinese 
perceived our actions and policies. So long as we pursue the support-
Taliban policy in Afghanistan  proforma, empty declarations of neutrality 
being neither here nor there  neither the Chinese nor the Iranians nor 
indeed any European government can support us. It is up to us to recognize 
that we have allowed a new alignment to have emerged on Afghanistan: It 
contains Russia, Iran, China and India, not to mention most Central Asian 
republics. Then, how can the Chinese or the Indians, Russians, Europeans, 
CARs forget the reality of the fanatical religious right in Pakistan which 
Islamabad is too powerless to contain, while it sends trained militants to 
preach militant Islam in Xinjing and other CARs.
                            S P O R T S 
Pakistan has an edge in hockey series against India
A. Majid Khan
The naming of Tahir Zaman as captain of the 18-member Pakistan team for the 
coming series against India was a predictable choice, but the designation 
of Mohammad Shahbaz as his deputy, has surely come as a surprise.
Tahir Zaman is a brilliant inside-right, having represented Pakistan thrice 
in the World Olympics (1988 Seoul, 1992 Barcelona and 1996 Atlanta) and 
twice in the World Cup (1990 Lahore and 1994 Sydney). His performance in 
the Champions Trophy and in a number of other international tournaments as 

also his role as vice-captain on several occasions when Mansoor led the 
Pakistan side, stood him in good stead to assume the leading role.
Mohammad Shahbaz, who plays both at the inside left and outside position, 
is no doubt an outstanding player but his suspect eye vision might cause 
problems. Rahim Khan would have been a safer choice as vice-captain.
The team composition with a mixture of experience and new blood should be 
welcomed. Pakistan's eight-man forward line of Rahim Khan, Tahir Zaman, 
Kamran Ashraf, Shahbaz Ahmed, Mohammad Shahbaz, Mohammad Sarwar, Asif Ahmed 
and Haider Hussain appeared capable of trying India's defence network to 
the full. Of all the forwards Rahim Khan had always showed his skill and 
top physical condition but despite that he had been treated as reserve 
forward (rightwinger) and sometimes as centre-forward.
Mohammad Sarwar also plays at the out side right position and new comer 
Haider Hussain is also a regular right-winger. It means we have selected no 
less than three players for the right-wing.
The half line comprises seasoned Mohammad Usman and Irfan Mahmood besides 
Imran Yousuf, Waseem Ahmed and Sohail Abbas, a newcomer in the senior side. 
Sohail Abbas is a fullback but he is a fine converter of penalty corner 
Imran Yousuf, as centre half, holds high promise. But since Taher Zaman had 
played as pivot during the trials as well as during the camp training, it 
is to be seen if Irfan Yousuf gets an opportunity to show his mettle in 
that position.
Fullback Naveed Alam, banned for beating Umpire Zaidi in Peshawar and later 
selected for Pakistan team in the 1997 Adelaide Champions Trophy, is in the 
squad alongwith Danish Kalim and Ali Raza. Ahmed Alam, discarded before the 
Atlanta Olympic is back as a number one goal keeper after Mansoor Ahmed's 
ouster. Mohammad Qasim, the juniors team goalkeeper is the reserve keeper.
Rashid Latif needs no immediate surgery
BLOEMFONTEIN, Feb 21: Pakistan captain Rashid Latif, who had to miss the 
first Test against South Africa because of injury to his neck, has been 
advised against immediate surgery by a neuro-surgeon on Friday.
Soon after arriving at Bloemfontein with the team for the three-day match 
against Free State, he was taken to hydromed hospital for an x-ray and a 
second opinion Dr Wilkinson who has now advised him to start light 
exercise. The x-ray according to Rashid Latif, shows a marked improvement.
The doctor has told me that operation is not necessary at this stage and if 
the movement of the neck does not induce pain then I can even play in the 
Test", said Rashid Latif.
The Pakistan captain is obviously disappointed that injury has kept him 
away from action. He played in the opening game against Nicky Oppenheimer 
XI and in the four-day match against Griqualand at Kimberly which Pakistan 
won by 307 runs. He seemed in good touch while making 80 odd runs in the 

first innings. Things certainly looked very rosy for him but then in the 
next match at East London he could play only three deliveries and had to 
pull out of the match. Prior to he match he was hit in practice which may 
have aggravated the problem.
Consultations with orthopaedic surgeon disclosed that the pain was due 
mainly because of problem with the discs C3 and C4 in the neck and a 
disappointed Pakistan captain had to hand over he reins to his deputy Aamir 
Sohail, the vice-captain.
"I am looking forward to the second Test at Durban. I wish I am fit enough 
to play in the match. I have started to do a bit of workout and I feel that 
the movement in the neck is much more free. I have not batted in the nets 
because of the pain but I shall now try and see whether I can bat without 
much pain and whether I am able to focus properly with my side on action 
without any after effects," said Rashid.
The mood, he said, in the camp is now a lot cheerful than at Johannesburg 
during the Test. "The mugging incident had disturbed our plans and our 
concentration had wavered because of it. now we have left everything behind 
and are fully concentrating on the game", he said.

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