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                          C O N T E N T S 

N A T I O N A L   N E W S
70pc literacy by 2010 aimed at
Quota for medical colleges abolished
World Bank okays $250m loan for SAP-II
Bank employees involved in litigation should get all benefits
China planning to provide heavy water to Pakistan
LB polls in Sindh put off
Pakistan to export sugar to Iraq
KMTP Deadline set by donors expires today
Fear and panic grip Karachi: 19 killed in target shooting
Census data: Secrecy to be maintained in tabulation
Attack on SC termed Leghari-Sajjad plot

B U S I N E S S  &  E C O N O M Y 
Pakistan 2010: redundant World Bank connection
Banks begin quoting dollar-rupee rates
Karachi Stock Exchange closes with clipped gains
IMF team recommends $208m 2nd tranche
Tax exemption for none, says Pasha
US agencies oppose revision of IPP tariffs
Business pressure to reduce mark-up
Competitive market required for privatization

E D I T O R I A L S  &  F E A T U R E S
Citizen emeritus!                                 Ardeshir Cowasjee
Stand and deliver                                      Irfan Husain
Making local bodies effective                                   MAH
BJP's challenge to Pakistan                             Eqbal Ahmad

S P O R T S 
Pakistan win Test and series after jingly-jangly ride
Jansher crushes Mir Zaman to retain trophy
Pakistan to meet India in ICC trophy opener

                     N A T I O N A L   N E W S 
70pc literacy by 2010 aimed at
Ihtashamul Haque

ISLAMABAD, March 27: The government on Friday announced the new 
education policy that envisaged increase in literary rate from the 
existing 31 per cent to 70 per cent by the year 2010.
Announcing the Education Policy 1998-2010 at a news conference 
here, Education Minister Ghous Ali Shah said that the government 
had decided to increase the education budget from 2.2 per cent of 
Gross National Product (GNP) to 4 per cent by 2003.
By the year 2003, Rs709 billion would be required for the expansion 
of education and reforms which included Rs150 billion private 
sector investment in education sector.
However, he said that all the estimates were based on the 
assumption that an annual growth of 6 per cent in the Gross 
Domestic Product(GDP) would be achieved.
The minister could not answer how the government would ensure such 
a massive funding to implement the policy in case 6 per cent GDP 
growth was not achieved which has been the case for the last few 
According to the new education policy, 45,000 new primary and 
20,000 masjid schools would be established. In addition, 75,000 
non-formal basic education schools would be set up by Prime 
Minister's Literacy Commission during the first five years.
Evening shift in the existing 20,000 primary schools will also be 
The existing 45,000 primary schools will be upgraded to middle 
level. It will quadruple the number of middle schools and 30,000 
new secondary schools will be opened.
Likewise, 305 new secondary vocational institutions will be set up 
and 126 new mono/polytechnic institutions will be established 
which, according to Syed Ghous Ali Shah, is an increase of 150 per 
The new policy also envisaged increasing the number of universities 
from 21 to 42 throughout the country.
About 100,000 new teachers will be recruited in primary, middle and 
secondary schools. The participation rate at primary level will 
reach 39 per cent and at degree level 75 per cent. Primary 
education will be made compulsory through a legislation with 

greater emphasis on girls' education.
The new policy did not speak about the ban on student unions as 
announced by the prime minister a few weeks back. The education 
minister only said that the government would discourage politics in 
educational institutions. However, there was no mention of the 
proposed legislation as had been hinted at by the prime minister.
Integrated curricula will be introduced for Class I-III. School 
administrative committees, village education committees and parent-
teacher associations will be strengthen to ensure support for basic 
Education card scheme will be introduced for the poor and needy 
students. Teachers training programme will be made more effective. 
Teachers will be recruited on merit and their attendance will be 
monitored to improve school performance.
The policy plans training in conventional literacy for those having 
Quranic education. The existing Quranic literacy programme meant 
for females will be extended to cover males. To enforce the 
Literacy Act, the Gazette of Pakistan will notify a date for the 
Moreover, through a legislation, budgetary allocation to education 
will be made non-lapseable, non-transferable and not liable to 
The minister told reporters that greater emphasis would be given on 
computer education in schools and technical education. "We will 
ensure effective implementation of the policy", he claimed.

Quota for medical colleges abolished
Shujaat Ali Khan

LAHORE, March 25: The Lahore High Court abolished on Wednesday all 
quotas for admission to medical colleges except those for the 
disabled, children of teaching doctors and students passing out 
from the tribal area institutions.
It also upheld the five per cent increase allowed to the GCE A-
levels holders in conversion of their grades into marks. An 
identical enhancement extended by the 1997-98 prospectus to 
candidates completing their pre-medical education under the 
American system was, however, disfavoured and ordered to be 
reconsidered by the Punjab Medical Admissions Board.
The watershed judgment, which relies on High Court, Federal Shariat 
Court and Supreme Court judgments against quotas in services, it 
likely to have an impact on admissions to all quota-based 
professional and other institutions in the province and elsewhere 
in Pakistan. As in case of federal and provincial civil services, 
the Constitution shall have to be amended if the government wanted 
to extend the quota system in medical education also.
The judgment, delivered by a division bench comprising Justice 
Malik Mohammad Qayyum and Justice Raja Mohammad Sabir, upheld the 
FATA quota in view of the area's backwardness but said it would not 
be available on the basis of domicile only. The claimants must have 
received their education there. Thus a FATA student of a Lahore 
college will not be eligible for a reserved seat.

The reservation of seats for sons and daughters of teachers of 
medical colleges has been upheld to encourage doctors to teach. The 
quota for the disabled needs no justification.
Disposing of a number of petitions filed by aspiring medicos, the 
judgment, authored by Justice Sabir, declared the quota system 
"discriminatory" and, therefore, "un-Islamic" and 
American certificate holders, on the other hand, are not eligible 
for admission to the US medical colleges without a two-year 
advanced course and admission test. The American certificate 
cannot, therefore, be treated at par with the GCE advance level or 
higher Senior Cambridge, the judgment said.

World Bank okays $250m loan for SAP-II
Bureau Report

ISLAMABAD, March 25: The World Bank has approved a $250 million 
loan for the second phase of the Social Action Programme (SAP-2) 
aimed at improving the basic social services.
The World bank had provided $200 million loan for the first phase 
of the programme in 1992 which was launched to reform elementary 
education, primary health care, population welfare and rural water 
supply and sanitation, with an emphasis on improving the quality of 
services for the poor, women and children.
The total outlay of SAP-II is over $10 billion, of which the 
government would generate over $8 billion, donor financed social 
sector projects will cover about $1.3 billion, IDA will provide 
$250 million and other donors, including the Netherlands government 
and the European Community will contribute about $450 million to 
the cost of the project. The credit is on standard IDA terms with a 
maturity of 35 years.
To support SAP-II, the International Development Agency (IDA) will 
continue its strategic assistance in partnership with an expanded 
group of donors who now include the ADB, the Netherlands 
government, Department for International Development of the United 
Kingdom and the European Community. The programme provides for 
other donors to join the partnership.
According to a World Bank announcement made here on Wednesday, 
Pakistan's efforts has begun to pay off, with school enrolment 
rising for girls, particularly in rural areas and a sharp increase 
in the immunization of children.
With the launching of SAP-II, the government will build on this initial
progress to increase enrolment and literacy rates, provide 
adequate basic health care facilities for rural areas, reduce 
infant mortality and increase people's access to safe water 
supplies and sanitation.
Particular emphasis has been placed on helping the very poor, who 
currently have little or no access to these basic services; women, 
who in particular need improved services for family planning, 
maternal care and clean water; and girls, who need better access to 
The World Bank observed that Pakistan's social welfare had improved 
over the past two decades but the country still had severe 

challenges to confront.
Only 55 per cent of Pakistan's primary school-aged children attend 
school compared to over 90 per cent in Bangladesh and India. The 
adult literacy rate is estimated at only 37 per cent (20 per cent 
for women). Pakistan has 52 girls for every 100 boys in a primary 
school compared with 81 in Bangladesh and 74 in India, and 76 on 
average in low-income countries, excluding China.
Forty-five per cent of rural population has access to safe water 
and 20 per cent to sanitation. Half of all children under 5 years 
of age are poorly nourished, and 30 per cent of pregnant and 
lactating women are underweight.
Pakistan's population is growing faster than any other large 
country in Asia, placing enormous demands on basic public services 
and the capacity of government to even sustain current service 
SAP-II will assist the government in developing specific strategies 
to improve delivery of these services through reforms which will 
include building government capacity for delivering effective 
social service programmes through improved planning management, 
implementation and monitoring. The programme will encourage 
partnerships with NGOs and private sectors to increase their 
participation in the delivery of social services. There will also 
be pilot initiatives to decentralise decision-making to the 
district level and below.
Increasing accountability through strengthening participation of 
stockholders, including local communities, in programme design and 
Bank employees involved in litigation should get all benefits
Staff Reporter

LAHORE, March 24: The retrenched bank and corporation employees who 
have challenged their dismissal before the Lahore High Court shall 
be eligible for any relief or benefit, including re- employment, 
extended by the government to their non-litigating peers, an LHC 
full bench ordered on Tuesday.
"The government is supposed to be the mother of all people and it 
should not mete out step-motherly treatment to some of them", 
Justice Malik Mohammad Qayyum told establishment secretary Afzal 
Kahut and finance secretary Moeen Afzal, who earlier explained why 
the petitioner UBL employees were left out of a federal cabinet 
decision on the subject.
The hearing will resume of April 20 as Justice Sharif Hussain 
Bukhari, another member of the bench, is proceeding for Haj. 
Justice Saeedur Rehman Farrukh is its third member. Arguments on 
admissibility have been addressed and the petitions will now be 
heard on merit.
Appearing for the UBL, advocate Salman Akram Raja said he has 
completed his arguments. Advocates Abid Hasan Minto and Jamshed Ali 
Shah will again argue the petitioners' case on merit.
The bench has also received a request from Attorney-General 
Chaudhry Mohammad Farooq for appearance in the case. The federation 
has so far been represented by Deputy Attorney-General Khwaja 

Saeeduz Zafar.
The court had summoned the government and UBL officials to explain 
the following statement of Parliamentary Secretary Sardar Kamal 
Umar submitted by Mr Saeeduz Zafar:
"The Cabinet in its meeting held on 21.12.1998 took the following 
decision regarding the employees of UBL: ".....II. The Cabinet 
decided that such employees of the nationalized banks who were 
unjustifibly removed from the service and had not received the 
golden handshake and who were not involved in litigation with the 
banks or the government will be placed in surplus pool and 
considered for re-employment in the public sector according to 
their qualifications and merit. A committee headed by the adviser 
to the Prime Minister on National Affairs comprising Secretary, 
Establishment Division and Secretary, Finance Division as its 
members was constituted to conduct a scrutiny on case to case 
basis. The committee should submit regular reports and brief the 
cabinet on the progress in thse cases. The Secretary of the 
Committee will be the Establishment Division".
Mr Kahut said the UBL employees were excluded because their case 
was sub judice. There also was the bar of Article 212 of the 
Constitution, which exclusively empowers the service tribunal to 
adjudicate the service matters of 'public servants'.
China planning to provide heavy water to Pakistan
Staff Correspondent

WASHINGTON, March 21: China is about to provide Pakistan with heavy 
water for its Khushab plutonium reactor, a nuclear control 
institute in Washington has claimed.
Paul Leventhal, president of the private Nuclear Control Institute 
said on Saturday Clinton should have deferred certifying China as 
eligible to purchase American nuclear technology and Congress 
should have imposed a one-year waiting period to test China's 
Leventhal said the next violation the US should be on the lookout 
for is China providing Pakistan with heavy water to start up the 
military plutonium production reactor at Khushab.
A group of lawmakers led by the chairman of the House International 
Relations Committee also urged Clinton on Friday to prevent 
delivery of reactors and other nuclear technology to China.
In a letter to the president they said China had failed to live up 
to its promise to curb the spread of its own advanced technology to 
countries bent on developing nuclear weapons.
The House members challenged China's assurances it was keeping its 
word  and Clinton's acceptance of Beijing's pledge.
They said they wanted to make their point in the strongest possible 
terms and asked Clinton to act immediately.
Clinton disclosed last Friday that China had secretly agreed a few 
weeks earlier to end discussions with Iran on the potential sale of 
a chemical that Iran could use for nuclear weapons development.

US officials said China decided to end the discussions after 
Washington learned about them through intelligence intercepts and 
raised the issue with Beijing.
They said it was not clear whether China suspended the talks with 
Iran under US pressure or whether it would have done so in any 

LB polls in Sindh put off
Staff Reporter

KARACHI, March 27: The Sindh government announced on Friday that it 
was postponing "till further orders" local bodies elections in the 
province scheduled to be held on April 18.
A notification dated March 27 and signed by Provincial Election 
Authority (the PEA falls under the Department of Local Government) 
secretary Munawwar Alam, gave a vague reason that the decision had 
been taken due to the Peshawer High Court staying the local bodies 
elections in the NWFP.
The notification made no mention of the 30-day period given by the 
Muttahida Qaumi Movement to the government for getting vacated the 
so-called "no-go" areas. This period ends on April 19 _ a day after 
the previously scheduled date for the local polls.
The text of the notification reads:
"The Government of Sindh has postponed the local bodies election 
which was [sic] scheduled to be held on 18th April, 1998. The 
elections were to be held throughout Pakistan simultaneously as was 
announced by the Prime Minister of Pakistan. The Peshawer High 
Court has stayed the elections in [the] NWFP till further orders. 
In view of the stay of the High Court of NWFP [sic] the elections 
to the local bodies cannot be held at the same time and therefore 
the Government of Sindh hereby announces the postponement of local 
bodies elections till further orders."
This newspaper however had reported as early as March 20 that a 
decision to postpone the local bodies elections had been taken at a 
marathon four-and-a-half hour long meeting (held on March 19) 
between the Sindh Chief Minister Liaquat Ali Jatoi, Sen Saifur 
Rahman and several MQM leaders, led by Senator Aftab Ahmed Sheikh.
A source privy to the meeting (which was held at MQM headquarter 
Nine Zero in Azizabad just when the 48-hour ultimatum by the party 
was about to expire) had told Dawn the same day that a decision had 
been taken in principle keeping in mind the 30-day period given by 
the party to the government to end the so-called "no-go" areas in 
parts of Karachi's District East and Malir.
The source had also said that a notification would be issued in a 
"few days" time and it had come just within a week or five working 
days of the March 19 meeting.
A minister in the coalition holding a key portfolio who did not 
want to be named said that the chief minister himself was not keen 
on holding the local bodies elections too soon also because his own 
party, the Pakistan Muslim League, had recently undergone an 
organizational overhaul and was still in the process of revamping 
its district- and division-level structure.

Pakistan to export sugar to Iraq
Bureau Report

ISLAMABAD, March 25: Pakistan, under the oil-for-food programme of 
the UN will export sugar to Iraq, an official announcement said on 
The government of Iraq has been allowed to import sugar under the 
memorandum of understanding signed with the United Nations.
Iraq's sugar import requirements this year are reported to be to 
the tune of 400,000 metric tons.
"Keeping in view the prospects, the government of Pakistan has 
allowed exporters, manufacturers and traders of sugar to export the 
commodity to Baghdad," it added. However they are required to 
fulfil the following conditions.
1) A contract should be signed with the ministry of trade, 
government of Iraq duly confirmed by the embassy of Pakistan, 
2) The supply of sugar under the above said contract should be as 
per the UN agreement of oil-for-food deal according to Security 
Council Resolution 1143/1997.
3) The contract should be registered with UN Security Council in 
New York and a formal NOC should be obtained from there.
4) Exporters who fulfil the above conditions have been advised to 
get themselves registered with the Export Promotion Bureau.

KMTP Deadline set by donors expires today
Azizullah Sharif

KARACHI, March 26: The much-publicized Karachi Mass Transit Project 
(KMTP) will be in jeopardy if the federal government failed to 
contact the Asian Development Bank (ADB) and the Japanese Exim bank 
by Friday (March 27).
The two banks have committed a loan of 200 million dollars for the 
project payable in 30 years on easy instalments.
According to Sindh senior minister Dr Farooq Sattar, both the banks 
in their strongly-worded letters written to the federal government 
two days back have clearly stated that if Pakistan government 
failed to contact them by March 27, they will be compelled to 
divert 200 million dollars loan for other projects.
The minister regretted that though the federal finance minister, 
Sartaj Aziz, keeping in view the international donor agencies' 
interest in the Karachi Mass Transit Project, had asked officials 
concerned to write them letters, the "anti-Karachi" bureaucrats in 
the federal government had not yet made any contact with the ADB 
and Japan's Exim bank in this regard.
The minister said that "as a result of several meetings the Haq 
Parast leadership had with the Prime Minister Nawaz Sharif during 
the last one year, the premier had not only agreed to lay the 
foundation stone of the KMTP in July but had also given specific 
directives to the federal finance minister in this regard.

"Ironically, those bureaucrats in Islamabad, having prejudiced 
attitude towards Karachi, not only created hindrance in the KMTP 
but deliberately delayed the process required for arranging 
financial resources for it," Dr Farooq deplored.
Fear and panic grip Karachi: 19 killed in target shooting
Staff Reporter

KARACHI, March 24: Nineteen people, including a leader of the 
Mohajir Qaumi Movement (Afaq) and his two cousins, were shot dead 
during terrorist attacks on Monday in the city, mainly in the areas 
dominated by the Afaq-led MQM. About a dozen vehicles were also 
torched in the troubled areas.
The Muttahida Qaumi Movement on Tuesday claimed at a press 
conference that three of its workers, two sympathizers and six 
relatives of party workers were among the dead. The Mohajir Qaumi 
Movement, on the other hand, claimed that the dead included its 11 
workers and smypathizers.
The localities of Malir Colony, Shah Faisal Colony, Lines Area, 
Landhi and Korangi and their neighbourhoods remained in the grip of 
tension and fear as people chose to remain indoors. The affected 
parts were deserted, with shops closed down and with no public 
transport appearing on the streets.
The annual examinations of the secondary school certificate (SSC), 
which began on Tuesday, were also affected in the 
troubledlocalities, mainly in the district east.
Imtiaz Ahmed Khan alias Imtiaz Koti, a central leader of the Afaq-
led MQM and a close aide of the party chief, was gunned down with 
two party men Abdur Rashid Khan, 46, and Saeedur Rehman, 40  in 
his business office near Liaquat Market in the limits of the 
Saudabad police station on Monday afternoon. Saeedur Rehman was a 
cousin of Mr Imtiaz.
Eyewitnesses said five armed men, three of them clad in burqa, came 
at the office of Imtiaz in a Datsun pick-up around 5:35pm. The men 
in burqa got down and opened indiscriminate fire at the office 
killing three people instantly, they added.
The bodies were first taken to a local hospital and then shifted to 
the JPMC. The doctors said the victims had received multiple bullet 
MQM chairman Afaq Ahmed rushed to the affected area and consoled 
the bereaved families.
The Saudabad police registered a case against unknown assailants.
The killing sparked violence in Malir Colony and its 
neighbourhoods, including Khokrapar, Saudabad, Jinnah Square and 
Malir City.
After the killing of an MQM leader and two others, two 
motorcyclists opened fire near the Saudabad house of Imtiaz Koti' 
mother, killing two young men instantly. The deceased were 
identified as Zeeshan Ahmed, 19, another cousin of Mr Koti, and 
Imran Ahmed, 18, and their bodies were shifted to the JPMC for 
autopsy. Deceased Zeeshan was also one of Koti's cousins.
Eyewitnesses said the two young men were standing at a shop when 
the motorcyclists sprayed them with bullets.

The Malir City police station, in whose jurisdiction the shooting 
took place, registered a case against unknown assailants.
In the limits of the Saudabad police station, where Koti and two 
workers were gunned down, three more people were later killed. Two 
of them were found shot dead at separate places near the railway 
tracks. Their bodies were shifted to the JPMC where they were 
identified as Ehtishamuddin Khan, 30, and Riyasat Hussain, 29. The 
third victim, brought form the locality to JPMC, was identified as 
Muhammad Shaukat. He had sustained bullet wounds near Malir Tanky 
and died on his way to the hospital.
A 35-year-old man was found shot dead near the Khokrapar post 
office. Identified as Muhammad Jahangir, the dead was shifted to 
JPMC. The victim was a dispenser in a government hospital at 
Khokrapar No. 2.
The MQM (Afaq) said the victim was a party worker of unit No. 96. 
He was married and had two children, it added.
A press release from the CM's House said the chief minister had 
directed the home secretary and the IGP of Sindh, commissioner of 
Karachi, and DIG, Karachi, to take all possible measures against 
those involved in the killings.
Census data: Secrecy to be maintained in tabulation
Bureau Report 

ISLAMABAD, March 25: The government has decided to declare areas 
where the data on population count will be stored and tabulated as 
classified, Dawn reliably learnt.
The data of population count, which will start reaching the federal 
capital under the supervision of troops in NLC trucks, will be 
initially stored in three barracks at the naval headquarters, a 
source said.
The data will be processed at the headquarters of Census Organiz-
ation and at an office of Statistic Division in G-8 Markaz, guarded 
by the army, he added.
"We will start receiving data from tomorrow ( Wednesday) ," said an 
official of the Census Organization. The provisional figures of the 
population count would be made available within three months, he 
The data collected by block enumerators would pass through three 
tiers before reaching the Census Organization headquarters, the 
source said.
The figures of population count and statistics collected for 
national data base would be processed separately, he added.
Punjab, Sindh, the NWFP and Azad Kashmir had been totally covered 
and some snow-bound places in Northern Areas had been left out, 
Chief Census Commissioner Javed Akram told Dawn.
"We have extended time for inaccessible places in the Northern 
Areas for a few days," he said. If the snow did not melt by that 
time the commission would consider postponing the demographic count 
till May or June", he added.
BALOCHISTAN: Regarding the resistance being faced by his staff in 
Balochistan, Mr Akram said that out of a total of 8300 blocks in 
Balochistan, they had already covered 8000.

He said it was a political problem and it should be tackled 
politically. All the Pushtoon leaders, resisting census work in 
Quetta, had allowed smooth counting in their native areas, he said.
Mr Akram said strict security would be observed during the 
tabulation of data. It would take at least three months to process 
millions of forms being collected from all over the country, he 
He did not give details of the special security measures being 
taken by the government at the Census Headquarters to ensure 
complete secrecy during the tabulation of data.

Attack on SC termed Leghari-Sajjad plot

ISLAMABAD, March 26: The Supreme Court was informed on Thursday 
that the Nov 28 attack on the apex court building was the result of 
a "conspiracy hatched by the then president and the then chief 
justice to destabilize the government".
Syed Mushahid Hussain, federal minister for information, in his 
sworn statement before the three member-bench working to identify 
those who were involved in the attacked on the SC building on Nov 
28, said the conspiracy hatched by the then president, Mr Farooq 
Leghari, and the then chief justice, Justice Sajjad Ali Shah, had 
led to the situation.
The court also recorded the statement of Senator Saifur Rehman, 
chairman of the Ehtesab Bureau, Privatization Commission chief Syed 
Khawaja Asif and PML worker Najma Hameed.
The federal information minister was reminded by the bench that he 
was standing in the witness box, not in the parliament. "You should 
remember this is a court room and not the National Assembly," a 
judge said, asking him to stay calm and speak only when permitted 
by the court.
Mr Mushahid Hussain is one of the six ruling party legislators who 
have recorded statements before the three-member bench. On another 
occasion Justice Nasir Aslam Zahid told Mr Mushahid Hussain "you 
might be a minister, but in the court you are merely a witness".
When asked who was responsible for the incident, an aggressive 
Mushahid Hussain said "the incident took place as a result of the 
conspiracy of Sajjad Ali Shah and Farooq Leghari."
Khawaja Asif, chairman of the privatization commission, informed 
the court that he had come to the supreme court as he was one of 
the respondents in the contempt case. He said he left the court 
room at 10.15 to attend an official meeting.
He said when he came out proceedings were going on smoothly and he 
saw some MNAs and MPAs pleading with the registrar, Mr Mohammad 
Zakaullah, for passes.
The SC will record statements of three more witnesses next 

                 B U S I N E S S  &  E C O N O M Y
Pakistan 2010: redundant World Bank connection

Dr. Mahnaz Fatima

NEARLY EVERY other economic policy in Pakistan is found rooted in 
the line of thinking given by the Bretton Woods Institutions. It 
might be a different matter though that World Bank has been 
responding to local calls and has been trying to incorporate local 
concerns in its proposed strategies and policies.
Two notable examples in the case of Pakistan are the Pakistan 2010 
plan and its power policy. I will revert to demonstrate the 
redundancy of the World Bank connection of the Pakistan 2010 plan.
At a broader level, however, the virtual conversion (Dawn, 13- 3-
98) of the well-known public choice theorist, Joseph Stiglitz, 
serving on deputation at the World Bank, Washington, to the kind of 
indigenous thought we have been promoting in Pakistan could be 
viewed as a triumph of the independent writers in the Third World.
However, this success would be meaningful only if translated for 
the benefit of the life of the common man in the Third World in 
general and Pakistan in particular. Also, care needs to be 
exercised in sifting the First World angle from their proposed 
strategies for the Third World.
Further, it is actually a matter of shame that locally generated 
ideas and conceptual outlines cannot be fleshed out into strategies 
by the various centres of excellence in Pakistan.
The reason being that most of these Pakistani think-tanks thrive on 
largesse doled out by foreign funding agencies which restrict their 
role by placing foreign thinking caps on the heads of the experts 
who are found toeing the line given by the foreign financiers.
Thus the continued inability of Pakistani think-tank organizations 
to translate locally generated concepts into strategies for action 
or to sift out the donor interest from the proposed strategies for 
the benefit of the country.
Reverting to the specific case of the Pakistan 2010 plan; while 
full details are not available, it seems to be more of a part of a 
similarly named World Bank draft strategy introduced in 1995.
Early in 1995, the World Bank in conjunction with the government of 
Pakistan prepared a draft report captioned Pakistan 2010 with a 
view to 'redefining' Pakistan's development strategy for the 
following 15 years.
In a critique (dated 1-3-96) of this report, this writer had 
concluded that while the underlying drift (the word is drift and 
not draft) of this World Bank (WB) Pakistan 2010 draft report was 
essentially neo-classical. The draft report appeared more like a 
patchwork with the development issues patched on perhaps either as 
a part of going through its (WB's) own learning curve that spanned 
half a century or in response to the local calls being given since 
early 1994 or in line with the emergence of the New Growth Theory.
So, while the main prong of this draft report aimed at market 
reform, private sector-led economic growth, deregulation, and 
liberalization; a complementary add-on prong addressed Pakistan's 
specific conditions of underdevelopment.

Therefore, a key feature of this draft report was the emphasis on 
poverty alleviation, human resource and physical infrastructure 
development, issues of governance, and public administration 
The targeted human resource development was aimed at through 
distinct specific programmes such as the Social Action Programme to 
raise the literacy and health levels of the country. This would be 
music for the ears of political economists who were only used to 
the neat neo-classical tune that had hitherto been called by the 
World Bank. However, there was a caveat. That is, what was the 
probability of the two prongs of the WB Pakistan 2010 draft plan 
meeting to deliver the desired results?
One prong aiming primarily at economic growth is based on the 
trickle down model of development which failed to show the desired 
results in the past.
The situation has recently deteriorated to the extent that this 
neo-classical prescription in Pakistan is not even being able to 
achieve the desired rates of economic growth.
The other prong of the draft report aimed at making a direct attack 
on the levels of literacy, education, health, and physical 
infrastructure. The assumption was that economic growth would 
create a demand for physical infrastructure and human resources 
whose parallel development would lead to their quick absorption in 
a rapidly growing economy.
The problem was thus assumed to be one of the supply of social and 
physical infrastructure whose demand was determined to be a 
function mainly of the rate of economic growth of the country.
That is, a mild disorder that would lead to a more stable 
independent order would be better than a discipline imposed by 
oppressive forces that stifle indigenous thinking and growth 
because of some kind of vested interest or the other.
This answer is applicable to this day in Pakistan as the war for 
the country's economic sovereignty actually started after its 
territorial independence and will rage on until fought and won on 
the educational front in the country which continues to be a 
bastion of colonial or neo-colonial rule.
Unless freed, it will not emit the guiding light needed essentially 
to chart an independent future course for the country.

Banks begin quoting dollar-rupee rates
Mohiuddin Aazim

KARACHI, March 24: Both local and foreign banks operating in 
Pakistan began quoting their own dollar-rupee exchange rates from 
Tuesday. But their rates remained within a band pre-fixed by the 
State Bank.
"When the market opened this morning ,"On the average the banks 
bought the greenback at Rs 44.41 and sold at Rs 44.48," the banker 
told Dawn. He said as the day progressed the demand for the 
greenback declined bringing down its average buying and selling 
rates to 44.35 and 44.37. The State Bank has allowed the banks to 
buy and sell the US dollar within a band of Rs 44.05 and Rs 44.49. 

Previously the State Bank used to buy dollars for Rs 44.05 and sold 
at Rs 44.27. The new selling price is higher by 22 paisa or half a 
per cent. 
The SBP issued a circular on Tuesday to notify the increase in the 
selling price of the US dollar. Banks are allowed to quote whatever 
dollar-rupee rates they like within 44.05 and 44.49 but the State 
Bank will continue to buy dollars at the old price of Rs 44.05 and 
sell them at the new price of 44.49. It means an indirect 
depreciation of half a per cent in the rupee value. Senior bankers 
reached by Dawn said the narrow spread in which the dollar traded 
on Tuesday indicated sort of stability in the market. They said it 
could not be predicted whether the trend would continue or change.
Immediately after the last rupee devaluation on Oct 15, 1997 the 
money market has been rife with rumours of a further devaluation 
but the rupee has so far survived these rumours. In the kerb market 
the rumours initially made some dents in the rupee value but later 
on the rupee firmed up against the dollar. On Tuesday, the dollar 
closed at Rs 46.52 and Rs 46.55 for buying and selling in the kerb 
market showing no impact of the 0.5 per cent depreciation in the 
official value of rupee. On Saturday, the dollar was quoted at Rs 
44.53 and Rs 44.56 against the rupee.
>From February 6 the banks have already been quoting their own 
exchange rates for all foreign currencies except the dollar and in 
case of other currencies they are not bound to keep their rates 
within a certain band.

Karachi Stock Exchange closes with clipped gains
Staff Reporter

KARACHI, March 27: Stocks on Friday closed with clipped gains but 
the weekend selling was well-absorbed by both the local investors 
and the foreign funds at the falling prices, indicating that the 
current recovery could be sustained.
"The US investors might not throng the rings as the loud whispering 
makes it look like, the prevailing optimism is well-shared by all 
and sundry", said a leading stock broker.
The market is rife with speculation that the visiting top US 
business executives have come here with clear instructions from the 
President Clinton to make massive investment in a number of sectors 
including the capital market, he added.
After opening 18 points higher against the last close, what the 
dealers called, an extension of the overnight rally, the KSE 100-
share index fell at the fag-end of the session on weekend selling, 
which pulled it down modestly to 1,564.48 as compared to 1,568.62 a 
day earlier.
Leading index shares attracted profit-selling and it finished with 
a decline of 4.14 points or Rs 1.071 billion fall in the market 
capitalization at Rs 472.464 billion.
The underlying sentiment remained uppishly inclined as no one was 
inclined to make total liquidation on predictions of a sustained 
bull-run by the next week.

"The presence of the three top US business executives in Islamabad 
and their intentions to make massive investment here seems to be 
the chief inspiring factor behind the current price flare-up", 
analysts said.
What seemed to have given credence to an expected steady inflow of 
the US money in various sectors in the coming months was their 
claim that the "President Clinton wants it that way", they added.
"It might be speculative thinking but the recent developments show 
that US investors mean that and the market has already received 
positive signals", said a member of the Karachi Stock Exchange 
adding "the current buying euphoria in Hub-Power, PTCL, ICI 
Pakistan and some others owe its origin to this market perception".
He said conflicting reports about the cut in tariff rates by the 
foreign sponsors of the Independent Power Projects from the 6.5 
cents per klw to 5.5 cents were not confirmed by the official 
But there appears to be a rather "plain no" from the visiting top 
US executives to lower the agreed power selling rates to WAPDA, 
some brokers said.
Trading volume fell to 53.229 million shares from the previous 
66.166 million shares, while out of 186 actives 66 shares rose; 78 
fell with 42 holding on to the last levels.
Most of the price changes were fractional and reflected lack of an 
aggressive selling. Raja Insurance and some others managed to post 
gains ranging from Re 1 to Rs 9.00.
Other good gainers were led by, EFU General Insurance, Pak Paper 
Products, PSO, National Refinery, Universal Leasing, Century Paper 
and Metropolitan Bank which posted gains ranging from Rs 2 to 4.50.
Among the MNCs which rose appreciably American Life, Exide 
Pakistan, Abbott Lab, Fauji Fertiliser and Reckitt and Colman were 
leading by Rs 1.10 to 3.
Elite Textiles and Dadabhoy Sack led the list of leading losers 
falling by Rs 5 and 4, respectively followed by Faran Sugar. Shell 
Pakistan, Crescent Steel and Gharibwal Cement which suffered losses 
ranging from Rs 1.05 to 2.75. Others fell, fractionally.
PTCL again led the list of actives easy 10 paisa at Rs 29.40 on 35 
million shares - more than a half of the total volume -; followed 
by Hub-Power off 45 paisa on 9.649 million shares; ICI Pakistan 
which was traded lower by 15 paisa on 1.13.400 million shares; Sui 
Southern and KESC were among the other most active shares; falling 
45 and rising by 10 paisa, respectively on 1.274 and 1.198 million 
Other actively traded shares were led by NDLC lower 35 paisa on 
0.507 million shares; followed by Indus Bank easy 55 paisa on 0.437 
million shares; FFC-Jordan Fertiliser lower five paisa on 0.390 
million shares; Engro Chemicals up 50 paisa on 0.262 million 
shares; Southern Electric up 15 paisa on 0.250 million shares.
Over 0.200 million shares of Knoll Pharma also changed hands at the 
unchanged rate of Rs 71.00. It appears to be an inter-managed deal 
but no details were available from the brokers.
Defaulting companies: Most of textile shares came in for active 
support at the lower levels and finished modestly higher amid 

active trading. The interesting feature was that bulk of the 
business was transacted at the previous levels barring a decline of 
50 paisa in Crescent Spinning which accounted for 2,000 shares. The 
largest deal of 25,000 shares was reported in Khurshid Spinning at 
the previous rates followed by 6,000 and 7,000 shares in Al-Qadir 
Textiles and Crescent Board also at the overnight level.

IMF team recommends $208m 2nd tranche
Bureau Report

ISLAMABAD, March 21: The five-member IMF mission, which monitored 
economic performance recently, has formally recommended to its 
headquarters to provide 208 million dollar second tranche of 
ESAF/EFF loan to Pakistan early next month.
Official sources told Dawn here on Saturday that the "Staff 
Recommendations" have just been made by the IMF mission headed by 
Ontonio Furtado to disburse the second tranche of 1.6 billion 
dollar Enhanced Structural Adjustment Facility (ESAF) and Extended 
Fund Facility (EFF).
Now the formal approval is expected to be accorded by the IMF 
Executive Board scheduled to meet on March 30 in Washington.
"The Staff Recommendations will lay the basis for the release of 
the 208 million dollar balance of payment support", said a source 
in the local multilateral donor agency.
He said apparently now there was no hitch in disbursement of funds, 
which would also help the government to seek loans from other 
foreign commercial banks and may also improve credit rating by 
agencies like Moody's and Standard & Poor of New York.
One of the major conditionalities of the IMF was to impose across 
the board three per cent General Sales Tax (GST) at retail level. 
The government had initially imposed this Value Added Tax (VAT) on 
six items. However, this tax was resisted by the traders community 
which kept pressuring the government to accept only "fixed tax" 
instead of tax on the basis of the income.
Sources said that the IMF has been asking the government "not" to 
accept the fixed tax regime but eventually it agreed to do so till 
the end of the current financial year. However, the government 
reportedly held out assurances that it will recover the GST on the 
basis of income from 1998-99 at all costs.
Sources said that the Staff Recommendations were made by the IMF 
mission after extensive discussions with the government on five 
major areas, i.e balance of payment position, revenue collection, 
fiscal situation, GDP growth and inflation.
Tax exemption for none, says Pasha
Ihtashamul Haque

ISLAMABAD, March 24: The Economic Coordination Committee of the 
Cabinet (ECC), which met here on Tuesday under the chairmanship of 
Minister for Finance Sartaj Aziz, has appointed a high-level 

committee to examine the possibility of taxing Non-Resident 
Professionals working in charitable institutions in Pakistan.
"We believe that income tax should also be recovered from the Non-
Resident Professionals and there should be no exemption for 
anybody", said Deputy Chairman Planning Commission Dr Hafiz Pasha. 
He has been appointed to head the committee. The members of the 
committee have been drawn from the Economic Affairs Division (EAD) 
and the Central Board of Revenue (CBR).
Dr Pasha later told Dawn that there was no significant revenue 
implications of the proposed plan and that it was a matter of 
"Why should there be any unnecessary and unreasonable tax 
exemptions to charitable organizations", he said adding that those 
foreign nationals were working in these organizations should pay 
their income tax. However, he said that no decision has been taken 
and it would be taken up after his committee gave its 
recommendations within one month.
"But let me clarify here that it has nothing to do with the multi-
nationals or the corporate sector", the Deputy Chairman Planning 
Commission added.
The ECC also reviewed the price index and noted that Sensitive 
Price Index (SPI) measured as a percentage change over 
corresponding week of the last year is 7.30 per cent.
US agencies oppose revision of IPP tariffs
Ihtashamul Haque

ISLAMABAD, March 26: Three major trade financing agencies of the 
United States have opposed any revision in power tariffs, earlier 
negotiated with the sponsors of 19 Independent Power Plants (IPPs).
The senior officials of the US Trade and Development Agency (TDA), 
US Overseas Private Insurance Corporation (OPIC) and the US Export 
Import Bank (Ex-Im) have said that they would oppose any revision 
in the power tariffs with the IPPs as it might discourage future 
foreign investment in Pakistan.
Speaking at a news conference here on Thursday, they however, 
expressed the hopes that the government would not raise the issue 
of revising power tariffs. They also said the US government 
believed that Pakistan would honour its commitments and agreements 
made with the IPPs.
A delegation of senior trade development officials of the United 
States had arrived here on Wednesday and had met a number of people 
including minister for communication, secretaries petroleum and 
water and power, BOI chairman and discussed with them various 
issues including future US investment in Pakistan. They included J. 
Joseph Grandmaison, Director of the TDA, George Munoz, President 
and CEO of the OPIC and Ms Rita Murrell, Senior Loan Officer of the 
Export Import Bank.
And today they met with the high officials of the Pakistani banks, 
sponsors of the power projects and financial community based in the 
Responding to a question, Joseph of TDA said that the best way was 
to follow the success story of the IPPs in Pakistan.

When asked that the WAPDA's financial problems will multiply in 
case it did not re-negotiate power purchase agreements with the 
IPPs, he said the US government was not direct party to the issue. 
However, he was of the view that Pakistan would not ask for 
reviewing power tariffs with a view to encourage foreign investment 
in the country.
Business pressure to reduce mark-up
Mohiuddin Aazim

KARACHI, March 27: Though the average mark-up being charged by the 
commercial banks is 16.23 per cent per annum the maximum flat rate 
is still as high as 22.26 per cent. This comes close to 24 per cent 
when service charges of the bank and other expenses on borrowing 
are included.
Businessmen have been feeling the pinch of excessive mark-ups for 
quite a long time but now the issue has come under sharp focus.
Bankers say the issue may come under discussion when Finance 
Minister Sartaj Aziz meets heads of five major banks and some 
state-run development financial institutions (DFIs) on April 1 in 
Islamabad. However, the official agenda of the meeting does not 
mention it separately.
The meeting has been convened to discuss such issues as loan 
recovery under the State Bank incentive scheme; outstanding level 
of loan defaults and difficulties in recovery; loan defaults in the 
public sector and their borrowing below the market rates and golden 
handshake scheme of the banks. Bankers say the meeting would also 
review the pace of privatization of banks and DFIs and discuss the 
recommendations of the Tarin committee for recovery of stuck-up 
State Bank Governor Dr Muhammad Yaqub is meeting the heads of five 
major banks and some state-run banks on Saturday afternoon. Bankers 
say the meeting has no specific agenda adding it would rather serve 
as a rehearsal for the Islamabad meeting on April 1.
Before that he would have a meeting with businessmen at the 
Federation of Pakistan Chambers of Commerce and Industry where the 
issue of high mark-up rates and project financing are sure to be 
raised. The meeting is being held primarily to sort out the 
problems related to recovery of bad debts and revival of sick 
"The managements of major local banks say they would rather prefer 
loosing their clients instead of lowering the mark-ups," said a 
managing committee member of Karachi Chamber of Commerce and 
Industry. The member who declined to be named said the banks 
justified high mark-ups by saying their cost of fund was high and 
the profitability low.
A source close to ministry of commerce said Commerce Minister Ishaq 
Dar last month forwarded a complaint on high mark-ups by a leading 
businessman to State Bank Governor Dr Muhammad Yaqub for an 
appropriate action. The complaint was filed by a member of private 
sector advisory council Shaikh A. Rashid. It was in the first 
meeting of the council held in January that Prime Minister Nawaz 

Sharif had expressed dissatisfaction over claims of reduced mark-
He said the complainant had submitted a comparative study of the 
mark-up rates of five banks including two state-run and a partly 
privatized bank.
The study showed that the flat rates of mark-up being charged by 
these banks ranged between 20.00-22.26 per cent. These rates rise 
further when the service charges of the banks are included.
The government has recently set up a 22-member committee to 
recommend measures for promoting project financing and reviewing 
the mark-up structure.
Last year the State Bank had given some monetary incentives to the 
banks including a 5 per cent cut in the statutory liquidity ratio 
to help them cut lending rates. Accordingly, the state-run National 
Bank and Habib Bank and partly-privatized Muslim Commercial Bank 
and Allied Bank had slashed the maximum mark-ups.
Bankers say banks are locked in a difficult situation. On the one 
hand the business community is building up pressure for a further 
cut in mark-ups and on the other hand the cost of fund is rising in 
the wake of an economic recession. They say most of the businessmen 
who criticize the banks for charging high mark-ups forget the fact 
that there is a vast spread between the maximum and minimum mark-
"While we lend at a little more than 22 per cent to a number of 
people we also lend at 15 and even 14 per cent to our valued 
clients," senior executive of a partly-privatized bank said.
"Valued clients are the ones who have never defaulted with the bank 
and their financial health and reputation is sound," he said.

Competitive market required for privatization

KARACHI, March 26: The government wants to privatize the Karachi 
Electricity Supply Corporation (KESC) within six months, sources 
The transaction, which involves sale of 51 per cent equity along 
with the management control to strategic investor, is to be 
completed within 180 days from the date of award of advisor mandate 
by the Privatization Commission.
However, in the absence of proper regulatory framework, conducive 
macroeconomic and law and order environment, experts say, the 
chances to attract strategic investor for this problem-plagued 
power utility are not very bright. They further say the 
privatization in this sector critical for the economy and it should 
not be done in haste as it would suggest whether Pakistan would 
have a viable and competitive power sector or not.
Currently there is no competition in the sector as two main utility 
companies  WAPDA and KESC  are both government-owned and consumer 
has no choice other than to generate its own power through units. 
The deals, in the case of Independent Power Projects (IPPs) and Kot 
Addu Power Company (KAPCO), are based on Power Purchasing Agreement 
(PPA), which have locked the consumers in long-term supply 

But according to the transaction structure, the KESC is going to be 
privatized as an integrated utility, whereby consumers will be 
directly engaged with generators for the supply of power through 
the transmission and distribution system. Analysts say this would 
require a truly competitive market in the country, which is still 
not in place. And any deal done in haste would create monopoly in 
the private sector with the consumers ending up paying higher 
Dr Salman Shah of Lahore Institute of Finance and Management says 
that generation companies should be privatized only after a power 
market is developed. "Privatization before developing a market 
could lock the generating capacity into long-term Take or Pay type 
contracts", he said. He said though, the regulatory agency NEPRA 
has been established but will take considerable time to become 
fully functional.
On the other hand, the rosy demand-supply projections, which were 
made in the 1994 Power Policy to attract foreign investors, are no 
more there. The recent figures on energy demand show that due to 
more than 100 per cent surge in tariffs in the last two and half 
years, the capacity demand growth has declined to 2.3 per cent in 
1994-95 and hit lowest level of only 0.45 per cent in 1995-96. In 
Pakistan, for years the capacity demand growth on average increased 
by the rate of 8 per cent per annum. Energy analysts fear that if 
this trend persists in near future instead of an increase in demand 
one might witness a fall in the demand.
However, analysts say, the other factor, which is dampening the 
chances of early privatization of KESC, is the troubled experience 
of foreign investors in most of the Asian power markets. Many 
national utilities like Indonesia's PLN and Thai EGAT are currently 
engaged in bitter dispute with IPPs and are backing out of their 
contractual obligations. Following the sharp devaluation in the 
region, they are facing falling electricity demand due to slow 
economic growth. Furthermore, for many, Asian power market is over-

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              E D I T O R I A L S  &  F E A T U R E S
Citizen emeritus!
Ardeshir Cowasjee 

AN invitation card arrived last week for a seminar organized by 
SHEHRI wherein it was announced that 'Ardeshir Cowasjee Citizen 
Emeritus' was to be the chief guest (although when earlier invited 
to be CG, I had declined). I asked Roland de Souza which damned 
fool had thought up the title 'citizen emeritus,' as citizens only 
retire when they depart this earth for calmer climes, and I was 
still around.
Down-to-earth Roland (lately called Loland), admitted that he was 
the DF. I must accept and be there, he told me. SHEHRI is being 
satisfactorily institutionalized and the people's awareness of 
their rights is steadily growing. They are standing up and 
shouting, objecting, fighting.
Right, I told him, but also tell me who it is who has arranged for 
tea and buns to be served at the start of the seminar. Normally 
this happens when all is over, thus keeping people in their seats 
until the last speech of the day. The risk now is that a couple of 
hundred will turn up to eat and a hundred will then leave.
However, this did not happen. We had a gathering of 300 or so 
(amongst them one High Court Judge and a number of leading 
architects and engineers of integrity), the majority of whom stuck 
it out to the finish.
Human-Rightist Justice Sabihuddin Ahmad of the High Court of Sindh 
was invited to preside. Lawyer Qazi Faez Isa, the president of 
SHEHRI, conducted the proceedings. The people's lawyer, Gilbert 
Naim-ur-Rahman, Commissioner of Karachi Mir Hussain Ali, KDA 
Director General Shah Mohammed Misbah, and, of course Roland-
Loland, were the speakers.
Architect Misbah, the first DG-KDA after many, many years besides 
whom one can sit and feel comfortable, fell from the skies during 
the caretaker ministership of Maqbool Rahimtoola, who held the 
Sindh Housing and Town Planning portfolio. Maqbool is the second 
son of the second chairman of the KDA, the late lamented jovial 
Habib Ibrahim (1958-60). The first chairman was that good banker, 
Mohammad Ali Habib (1957-58). The third chairman of those martial 
law days was Colonel Nasiruddin Humayun (1960-62). During the good 
early years of KDA's life, town-planners Khwaja Zaheeruddin and 
later Ahmad Ali were in charge of the Master Plan and Karachi's 
planning and development was as good as that of any growing city 
anywhere. There was never even the slightest whiff of corruption.
Thereafter the organization was headed by director-generals, mostly 
civil servants, who were as strong as their breed tend to be. They 
held office on an average for two and a half years. Corruption was 

born : the illegal allotment of plots and the relaxation of 
planning and building rules and regulations were institutionalized, 
though monetary considerations were still held at bay.
The real money-game started with the promotion of Engineer Z A 
Nizami, an officer of the Authority since the mid-60s, who rose to 
the post of DG in 1980. He gave away land and favours allegedly for 
favours received. The favours he dished out made him a favourite 
with the establishment and it was during this time that the 
builders' mafia was established and the planning and development of 
Karachi disintegrated into a concrete jungle. Z.A. Nizami, largely 
supported by another shining civil servant, Salman Faruqui, even 
survived the inscrutable, honest Governor of Sindh, serving Lt 
General Abbasi.
With Nizami's help, Salman managed to have as many as 30 plots in 
Karachi allotted to himself and to members of his family, under 
various names. As we all now know, with the tacit approval of 
Interior Minister Chaudhry Shujaat and Prime Minister Nawaz Sharif, 
Salman, evading accountability, has fled the country.
Z.A. Nizami stayed in office as DG-KDA for eight years until 
Governor of Sindh, Lt. General Rahimuddin Khan, took the bit 
between his teeth and removed him in the middle of the night.
After Zia's mysterious and still unexplained death, and the re-
birth of democracy, various non-descript civil servants were put at 
the head of the Authority. Weak and helpless as they were, the true 
heads were Benazir Bhutto and her husband and their ministers in 
Sindh, followed by Jam Sadiq, then Muzaffar Hussain Shah, and their 
ministers. Corruption reigned supreme.
During Benazir Bhutto's second round, one of Nizami's proteges, 
Rauf Akhtar Faruqui, was made Chief Controller of Buildings, 
Karachi Building Control Authority (KMC). The extent of corruption 
can be guaged by the following example of a 'note' written by him 
on a file pertaining to a construction in the Clifton area :
"9. In this particular case, the request of the applicant involves 
: (1) Lifting of ban on highrise buildings ; (2) relaxation in 
covered area from 95,000 sq ft to 585,000 sq ft ; (3) conversion of 
plot from residential to commercial as shops have been proposed to 
be built on the ground floor ; (4) relaxation of rules as described 
in the lease conditions ; (5) payment of additional floor charges 
beyond ground and one upper floor; (6) payment of commercialisation 
charges for shops ; (7) approval for building ground plus 15 upper 
floors with penthouse."
The case was pushed upwards for "appropriate orders in the matter." 
Swiftly bypassing red tapism, the note arrived on Chief Minister 
Abdullah Shah's desk and he noted upon the file : "In view of the 
averments made in para 13, the request made in para 9 is accepted 
by relaxing rules and policy."
Para 13 was a flip-flop written by the secretary, local government, 
the last sentence of which read : "The CCOB- KBA (KMC) has further 
pointed out that for major relaxation in the regulations, the 
Government is competent. It is further stated that in the past, 

Minister for Housing and Town Planning in general, and the Chief 
Minister in particular, have exercised such powers."
Wily Rauf Faruqui now has a bunch of some 20 anti-corruption cases 
pending against him. He has managed to survive, and the Sindh 
government continues to employ him in its Weights & Measures 
Department. He remains a firm favourite of the Dons of the 
builders' mafia, and is constantly being pushed by various sources 
to be reinstated as the DG-KDA. His one time boss and staunch 
supporter, former chief minister Abdullah Shah, has been declared 
an absconder by the courts.
As DG Misbah has to suffer seven 'wives' (apart from his own wife 
to whom he is happily married) : Chief Minister Liaquat Jatoi, his 
intrepid secretary Shahid Nazir, senior MQM minister Farooq Sattar, 
MQM minister for housing and town planning Waseem Akhtar, chief 
secretary Saeed Mehdi, secretary HTP, and the commissioner Karachi 
who is chairman of the KDA governing body. Apart from Saeed Mehdi, 
at any given time, the other six, jointly or severally, 
persistently seek his transfer on one pretext or another, hoping to 
move him out to Chachhro or Tharparkar or wherever (he was 
arbitrarily suspended once by the chief minister for his inability 
to be at two meetings at two different places in the city held at 
the same time). The builders' mafia is also desperately keen to get 
Misbah as far away from the KDA as possible.
Considering the combined clout of all those wishing Misbah out, it 
is safe to presume that he is a relatively clean and efficient man. 
During his tenure, he has facilitated the organization of a 
committee to 'oversee' the working of the KBCA, as stipulated in 
Clause 4-B of the Sindh Building Control Ordinance, 1979. This has 
not been done before. Sitting on the committee, apart from the 
usual government 'bumph', and the builders (who never cease to 
proclaim their injured innocence), are representatives of various 
architectural and engineering bodies, a SHEHRI representative, and 
a Citizen of Pakistan (me).  Helping Karachi and the committee, we 
have on the benches of the Sindh High Court 10 environment-friendly 
judges : Chief Justice Wajihuddin Ahmad, Justices Kamal Mansur 
Alam, Majida Rizvi, Rana Bhagwandas, Deedar Hussain Shah, Dr Ghous 
Mohammad, Sabihuddin Ahmad, Mushtaq Memon, Ibrahim Sirwana and Abol 
They are all appreciative of the good work being done by SHEHRI, a 
non-profit organization in need of further strengthening. Its 
affairs are managed by Roland and that other untiring volunteer, 
Amber Alibhai. The staff is dedicated and efficient. It is funded 
by the philanthropic Fredrich Nauman Foundation and by donations 
from the citizens. But its work load is heavy and it needs more 
funds to employ more people. We will always have governments bent 
on destroying institutions, their own as well as those of others, 
and we can only survive if the people, in the interests of their 
own self-preservation, institutionalize and strengthen themselves. 


Stand and deliver
Irfan Husain

LAST week's MQM versus MQM mayhem and the subsequent strike 
reminded us once again how fragile Karachi's peace is.
A foreigner I met for the first time in the aftermath of this 
latest eruption asked me what the government was going to do about 
this anarchic state of affairs. Not being privy to the inner 
counsels of Nawaz Sharif's kitchen cabinet, I replied that I didn't 
think Islamabad could or would do anything. Quite indignant, she 
asked if the people were going to continue putting up with this 
lawlessness and the government's policy of masterful inaction.
Perhaps without realizing it, she had put her finger on the nub of 
the problem: how long will we go on putting up with every tinpot 
ruffian who forces Karachi to come to a grinding halt? Or, turning 
to the larger picture, until when will we continue accepting the 
rapidly declining standards of public behaviour and governance? 
Will there ever come a point when ordinary people stand up to our 
grotesquely incompetent and irredeemably corrupt political class, 
and say: "Enough!"?
I doubt it. We are too cynical, too self-centred and too lazy to 
assert ourselves unless something affects our immediate family or 
our personal interests. There is very little sense of the community 
and no organizational skills among our educated class. Above all, 
we lack the motivation and drive needed to reform a decaying order.
Take the case of the recent strike as an example: the people who 
suffered ranged from the thousands of Matric students who had to 
take their annual exam to the daily-wage workers who were deprived 
of their earnings. Those who called the strike were sitting 
comfortably in Karachi or elsewhere. And yet, despite the suffering 
so callously inflicted on so many thousands of people there has 
been no protest, no backlash.
Altaf Hussain's MQM has demanded the end of the no-go areas where 
the Haqiqi faction rules the roost. But as I said to an old friend 
who is very high in the former's inner circle, this is not about to 
happen. Those who set up the Haqiqi group did so because they 
wanted a counter-weight to the MQM; in their calculus of power, 
disbanding the breakaway faction of the MQM would make Altaf 
Hussain far too strong.
The problem with this divide-and-rule strategy is that it produces 
inevitable casualties among us civilians who want no part of this 
internecine war. And as we continue to observe (and suffer), this 
savage infighting has produced huge collateral damage as far as 
Karachi's battered economy is concerned. A number of multinationals 
have relocated their head offices to Islamabad, many factories have 
either moved to Punjab, or shut down completely, and thousands of 
cottage industries have packed up. There is no new investment in 
manufacturing coming into Karachi, and the number of unemployed 
continues to rise. But to those calling the shots this is a price 
they are willing to pay.

Those who have seized control of Karachi's destiny have no idea of 
the damage they have inflicted on the community they say they are 
protecting. Beyond the economic losses and the personal suffering 
they have caused, they have managed to alienate the majority both 
in Sindh and the rest of the country. Everybody is heartily sick 
and tired of their endless whingeing, their fascistic methods and 
their interminable fighting with each other and everybody else.
No major power grouping in the country trusts them and even for 
their nominal allies, the Muslim League, the partnership with the 
MQM is very much a marriage of convenience. Although Benazir Bhutto 
might now wish to cut a deal with Altaf Hussain, this is a measure 
more of her desperation than any faith she might repose in the 
party that, in her eyes, stabbed her in the back during her first 
stint. The army mistrusts a party that is alleged to have links 
with Indian intelligence agencies, and that it holds it responsible 
for the torture of a major a few years ago. The religious parties 
resent the fact that whatever its other faults, the MQM is probably 
the most secular political party in Pakistan.
So the MQM has painted itself into a corner from which it cannot 
emerge without radically changing itself. Since this is unlikely to 
happen, we can expect an escalation in the violence between the two 
factions of the ethnic party, accompanied by more strikes and more 
indiscriminate mayhem.
Meanwhile, the only one to benefit from this situation is Benazir 
Bhutto: many people are recalling her firmness in dealing with 
terrorism wistfully, and forgetting the alleged custodial killings 
that paid for the short-term peace in the city. Indeed, if there is 
any one thing for which she deserved credit in many people's eyes, 
it is for curbing ethnic violence in Karachi. By releasing many 
alleged terrorists arrested by the previous government to buy the 
MQM's support in keeping the PPP out in Sindh, the government may 
have made today's mayhem inevitable.
So how do we emerge from this morass? The government is desperate 
to keep its shaky coalition in Sindh intact, so it will go to 
almost any length to keep the MQM happy. The more sober elements in 
the MQM want to stay in the government, fearing a crackdown if they 
pull out, causing the collapse of the coalition: however the 
hotheads and Altaf Hussain may yet impose a different decision. The 
authorities and the intelligence agencies seem determined to keep 
the Haqiqi group afloat, dangerous though it is. Checkmate.
If we are to break this logjam of conflicting goals and ambitions, 
the people will have to assert themselves. And we come back to the 
question of how long before we say "Enough!"? Will the MQM's 
supporters tell the militants and the leadership that they have had 
enough of strikes and killings, and they wish to be left alone? 
Already, they have registered their disapproval by casting far 
fewer votes for the MQM in the last election than they did before. 
Perhaps this welcome trend will be strengthened in the ensuing 
local bodies polls.

But today's situation demands a greater commitment than just 
waiting passively for the next election. There is now a desperate 
need to send a clear signal to all the hate-mongers in the country 
that we will not remain idle bystanders any longer. And we also 
have to send the government a message that it should start 
governing or quit. They should stand and deliver!

Making local bodies effective

ALMOST immediately after the reported announcement that the federal 
government would provide constitutional cover to local bodies, the 
Punjab government surprised everyone by pulling out a rabbit of an 
ordinance from its legislative hat.
Called the Punjab Local Government (Amendment) Ordinance, 1998, it 
provides that the members of a panchayat, to be constituted in a 
village of not less than 300 people, shall be nominated by the 
government, ignoring completely one of "Principles of policy" as 
enshrined in Article 32 of the Constitution, which imposes, in 
unequivocal terms, an imperative obligation that the state shall 
encourage local government institutions composed of elected 
representatives of the areas concerned and in such institutions 
special representation will be given to peasants, workers and 
Having opted for a Euro-American government structure by seeking to 
combine a parliamentary form of government with a federal 
organization, Pakistan has, over the years, relegated panchayat and 
local bodies to the background, and just put them in the 
Constitution under the "Principles of policy." The local bodies, as 
a result, became handmaid of provincial governments. They exist and 
their elections are held at the will of the government. During all 
these years local bodies underwent no meaningful structural 
changes, and were subjected to administrative and political 
neglect. They did not have enough resources to meet their 
obligations. Only small and limited powers were given to them. They 
were marginalized.
If a local body took actions which the ruling party in the province 
did not like, it was suspended and superseded. Prolonged and 
widespread suspension has always been the order of the day. Thus, 
neither the people's initiative nor their adequate representation 
has been possible. With the involvement of the provincial 
administrative machinery in the tasks of local governance, the 
local bodies were reduced to the status of parastatals in relation 
to the provincial government.
The local bodies, as units of self-government, have to settle local 
problems and undertake local development, according to the wishes 
and desires of he people of the locality, and not in accordance 
with the wishes of the people in the provincial capital. If they 
have to develop into a system of self-sufficient and self-governing 
local communities, their rights, obligations, powers, resources, 
methods of elections and organizations require constitutional 

Since our own constitution is a crotchet work drawn heavily from 
the constitutions of other countries, particularly India, it is 
time we examined how constitutional status has been conferred on 
municipalities and panchayats in India. For the purposes of this 
article, let us confine ourselves to Panchayats only.
Despite the provision in the "Directive Principles of State 
Policy", as embodied in Article 40 of the Indian Constitution that 
the state "shall take steps to organize village panchayat and endow 
them with such powers and authority as may be necessary to enable 
them to function as units of self-government", the panchayats did 
not become statutory bodies till the passage of the Constitution 
(Seventy-third Amendment) Act, 1992, which came into force on April 
23, 1994. (The Seventy-fourth Amendment Act, 1992, deals separately 
and exclusively with urban municipal government in India).
This piece of legislation has been hailed in India as one of the 
most comprehensive measures for democratic decentralization, not 
from the Centre to the states but from the states to their local 
bodies and panchayats, which are much closer to the people than the 
members of governments in the state capitals.
Ensuring a degree of institutional uniformity of panchayat system 
of government, the Seventy-third Amendment provides for elections 
on adult franchise to be conducted by the state election 
commission, a limited period of their suspension, reservation of 
seats for women, scheduled castes and scheduled tribes, a list of 
duties, appointment of state finance commission on the model of its 
central counterpart, and creation of a planning committee at the 
district level.
As laid down in the 73rd Amendment, every state is required to 
constitute panchayats at the village, intermediate and district 
levels. Every state has to make provisions, by law, with respect to 
composition of panchayats in such a way that the ratio between the 
population of the territorial area of a panchayat at any level and 
the number of seats in such panchayat to be filled by election 
shall be the same throughout the state.
All the seats in a panchayat shall be filled by persons chosen by 
direct election from territorial constituencies in the panchayat 
area. Each panchayat area has to be divided into territorial 
constituencies in such a manner that the ratio between the 
population of each constituency and the number of seats allotted to 
it shall be the same throughout the panchayat area.
The chairperson of a panchayat at the village level shall be 
elected in such a manner as the state legislature may, by law, 
provide, but the chairperson of a panchayat at the intermediate 
level or district level shall be elected by and from amongst the 
elected persons thereof.
Apart from electoral composition of the panchayats, the Amendment 
provides for additional memberships. The Legislature of a state 
may, by law, provide for representation of (i) the chairpersons of 
the panchayats, at the village level, in the panchayats at the 
intermediate and district levels; and (ii) sitting members of the 

houses of the state legislature and parliament, representing 
constituencies, which comprise wholly or partly a panchayat area at 
a level other than the village level, in such panchayat.
The Seventy-third Amendment provides for reservation of seats in 
every panchayat for the scheduled castes, the scheduled tribes, and 
women. The number of seats reserved for the scheduled castes and 
the scheduled tribes shall bear the same proportion to the total 
number of seats to be filled by direct election in the panchayat as 
their population in that panchayat area bear to the total 
population in that area, and such seats are to be allotted by 
rotation to different constituencies in a panchayat.
Further, out of the total number of seats reserved for the 
scheduled castes and the scheduled tribes, one-third have been 
reserved for women belonging to them. Again, out of the total 
number of seats to be filled by direct election in every panchayat, 
one-third number of seats (including the number of seats reserved 
for women belonging to the scheduled castes and the scheduled 
tribes) have been reserved for women, and these seats are to be 
allotted by rotation to different constituencies in a panchayat.
The legislature of a state has to provide, by law, the manner in 
which the offices of chairpersons in panchayats at the village 
level or any other level shall be reserved for the scheduled 
castes, the scheduled tribes and women. However, the number of such 
reserved offices for the scheduled castes and the scheduled tribes 
in the panchayat at each level shall bear the same proportion to 
the total number of such offices as their population in the state 
bears to the total population of the state.
Secondly, out of the total number of offices of chairpersons in the 
panchayat at each level, one-third of the offices shall be reserved 
for women. Thus, the role of women in village panchayats have been 
adequately legislated for.
The life of an elected panchayat has been fixed for a period of 
five years, unless sooner dissolved, but an election to constitute 
a panchayat shall be completed before the expiration of six months 
from the date of its dissolution.
The superintendence, direction and control of the preparation of 
electoral rolls for, and the conduct of, all elections to the 
panchayats shall be vested in a single member state election 
commission to be appointed by the governor, and the state election 
commissioner shall not be removed from his office except in like 
manner and on the like grounds as a judge of a High Court.
As regards powers, authority and responsibility of panchayats, the 
73rd amendment indicates in the Eleventh Schedule, 29 areas (from 
agriculture, land improvement to health and sanitation, public 
distribution system and maintenance of community assets) for 
possible devolution to the panchayats. For this, the state 
legislature is required to enact a law to endow the panchayats with 
necessary powers to enable them to carry out their functions and 
responsibilities in respect of these twentynine subjects.

The Amendment enjoins the state Legislature to authorise, by law, a 
panchayat to levy, collect and appropriate taxes, duties, tolls and 
fees; to assign to a panchayat such taxes, duties and fees levied 
and collected by the state government; and to make grants-in-aid to 
the panchayats from the state consolidated fund.
One of the significant provisions is the constitution of the state 
finance commission for each state within one year from the 
commencement of the Amendment (April 23, 1994) and thereafter, at 
the expiration of every fifth year, to review the financial 
position of the panchayats and to make recommendations to the 
governor as to (i) the principles which should govern the 
distribution between the state and the panchayats of the net 
proceeds of the taxes, duties, tolls and fees leviable by the 
state, which may be divided between them, and the allocation 
between the panchayats at all levels of their respective shares of 
such proceeds; (ii) the determination of the taxes, duties, tolls 
and fees which may be assigned to, or appropriated by the 
panchayats; (iii) the measures needed to improve the financial 
position of the panchayats; and (iv) the grants-in-aid to the 
panchayats from the consolidated fund of the state.
Further, the Amendment requires the (Central) finance commission to 
make recommendations, among other things, to the president as to 
the measures needed to augment the consolidated fund of a state to 
supplement the resources of the panchayats in the state on the 
basis of the recommendations made by the finance commission of the 
Consequently, the Tenth Finance Commission in its report (December 
1994) recommended a specific grant of Rs 5380.93 crore for all the 
states for the five year period from 1995 to 2000.
Though the Constitution (Seventyfourth Amendment) Act, 1992, lays 
down the principles of municipal governments, one of its key 
provisions relates to the creation of a district planning committee 
in every state at district level to consolidate the plans prepared 
by the panchayats and the municipalities in the district, and to 
prepare a development plan for the district as a whole. The 
legislature of a state, by law, has to make provision with respect 
to the composition of the committee and the manner in which the 
seats in such committee shall be filled.
But not less than four-fifths of the total number of members of 
such committee shall be elected by, and from amongst, the elected 
members of the panchayat at the district level and of the 
municipalities in the district in proportion to the ratio between 
the population of rural areas and of the urban areas in the 
district. The district planning committee has to undertake planning 
for matters of common interest between the panchayats and the 
municipalities including spatial planning, sharing of water and 
other physical and natural resources, the integrated development of 
infrastructure and environmental conservation.
In Pakistan, there is a right move, however late in the day, to 
give constitutional cover to local bodies. Whether it would be 

based on some new concepts or it would have provisions borrowed 
from the Indian Constitutional amendments, would be known when the 
constitutional package is unwrapped and revealed.

BJP's challenge to Pakistan
Eqbal Ahmad

IN an early gesture as Prime Minister, Mr Atal Behari Vajpayee 
underlined the importance he attaches to India's relations with 
Pakistan: he turned up at the India-Pakistan hockey match, greeted 
the players, and watched the game just long enough  eight minutes 
 to see his team score a goal. That's quintessential Vajpayee. He 
likes to be friendly and gracious, and loves to win.
He leads a shaky coalition of 19 parties and an obese team of 42 
ministers to which he anticipates additions. A cat with nineteen 
tails may not survive very long. If it does, it will not run 
efficiently. Mr Vajpayee has been wise and bold, nevertheless, in 
assigning jobs. For the finance portfolio, he bypassed Murli 
Manohar Joshi, a ranking BJP leader and economic nationalist 
favoured by the RSS, for Yashwant Sinha, a relatively new comer to 
the party and economic liberal, a clear signal of moderation to 
capital both domestic and foreign.
As Home Minister, BJP president L.K. Advani has the responsibility 
of keeping order which is quite a challenge for one given to 
disturbances of peace. The irrepressible Mr George Fernandes leads 
the Defence Ministry. He is likely to make media-waves and follow 
the brass the best he can. The prime minister has kept the foreign 
affairs portfolio to himself, which is an indication of his 
interest and also of the importance he attaches to India's foreign 
If Vajpayee's government lasts even half its legal tenure its 
domestic impact is likely to be ideological while he accords 
substantive attention to India's foreign relations. At a conference 
in Sri Lanka last week several Indian scholars, including Ashish 
Nandy who is among India's most original thinkers, emphasized BJP's 
evolution toward moderation and secularism, and also its dependence 
on allies whose agendas can only dilute its own. They were 
convincing up to a point in so far as hard policies are concerned, 
BJP's government is likely at best to yield continuity rather than 
change. "They shall make symbolic changes", agrees Ashish Nandy.
The impact can be harmful nevertheless. Symbolic gestures and 
events invariably make substantive differences in the lives of 
nations and peoples. Often the effects of concrete events and 
policies are more easily reversed by antidotal policies than are 
symbolic influences. Symbols shape culture, outlook, attitudes and 
identities. Pakistanis who have lived through the hollow 
opportunism of Z.A. Bhutto's populist posturing and Mohammed Ziaul 
Haq's 'Islamization' process will recognize the truth of this 
observation. The one was as serious about the people's interests as 
the other was about Islam. Each in his own way was a 'moderate', 

given to opportunity rather than principle. Yet, the legacies of 
their symbolic engagements continue to distort Pakistani political 
and cultural life.
As a party, the BJP runs the dual jeopardy of carrying both the 
populist and the sectarian germs. Unable to deliver an effective 
and purposeful government it is likely to compensate for its 
failures with symbolic gestures toward its rhetorical promise of 
'one nation and one culture.' As Rabindranath Tagore had feared 
seven decades ago, symbolic gesticulations of this sort can have 
devastating effects upon the multi-caste, multi-cultural and multi-
religious country.
A sense of anxiety prevails among India's neighbours, especially in 
Pakistan. Their concern has been augmented by BJP leaders' 
statements that they might induct nuclear weapons in its military 
arsenal. There are ambiguities in those statements; there is no 
certainty as to what they actually intend. India's neighbours  
none of whom wish to live in shadow of India's nuclear bomb  
should nevertheless take this threat seriously and make, as 
vigorously and quietly as possible, what effort they can to 
dissuade Delhi from so dangerous a course. There are greater risks 
in it for Pakistan than for other countries, as it alone has 
unresolved disputes with India. Moreover, Pakistan's security 
environment will be affected by the activation of the Prithvi and 
Agni missiles programmes an inevitable consequence of inducting 
nuclear weapons, and it alone will have to weigh its nuclear 
The need to build pressure on India against the induction of 
nuclear weapons is urgent. But if it is to be effective it ought to 
be quiet and systematic. Recent statements of Pakistani officials 
once again underline our officials' proclivity to disregard the 
relationship between sound and effect, and ignore the distinctions 
between diplomacy and propaganda, polemic and politics. To the 
great powers we need to convey a sense of concern and resolve which 
are best conveyed by quiet diplomacy and tactical silence. Bluster 
and threats suggest panic and pugnacity. A momentous issue is then 
reduced to a South Asian squabble.
Without underestimating its importance to Pakistan's security, we 
ought to understand also that Pakistan is not the target of BJP's 
quest for nuclear power. In fact BJP's leaders are among the few in 
India who are genuinely contented over the creation of Pakistan. 
Authentic communalists, they are happy to be rid of no less than 
250 million Muslims, now divided between Pakistan and Bangladesh. 
In retrospect India's partition was an RSS dream come true, and 
they would not want to undo it. As for India's quest for hegemony, 
it is well known that hegemony is not achieved by possessing the 
nuclear or any other bomb. BJP leaders wish to declare their 
nuclear weapons because they view it as a passport to the 'great 
power club', and they are obsessed with formally entering the club. 
Dangerously silly but true!
The BJP has long been committed to inducing nuclear weapons in 
India's arsenal, and may actually do so. There are few domestic 

constraints. In India as in Pakistan public opinion does not oppose 
nuclear weapons. Differences exist within the establishment only on 
the degree of ambiguity concerning its possession, differences 
which governments have easy ways of resolving. Moreover, BJP's is 
likely to remain a shaky coalition, hence unlikely to deliver 
desperately needed bread and butter to the people. Governments 
which do not deliver seek refuge in patriotic fervour. Hence the 
need to neutralize the BJP's inner compulsions with external 
stimuli. This is better achieved by quiet diplomacy than public 
warnings and confrontations.
Over the years Mr Vajpayee has taken interest in Pakistan. He 
believes that normal and stable relations with it is essential for 
India to become a successful player in international politics. "The 
great powers exploit our differences", he said to me many years 
ago. As India's foreign minister, his enthusiastic efforts to 
improve relations had surprised Pakistani officials. He is likely 
again to make vigorous gestures to improve trade and cultural 
Yet, he is not likely to negotiate Kashmir on Pakistani or even 
Kashmiri terms. His government cannot repeal Article 370 of the 
Indian Constitution even if it wants to. But it can harden its 
military posture in Kashmir, and escalate the ongoing covert 
warfare with Pakistan. Given the current composition of our 
establishment, Pakistan's response may be symmetrical. Indo-
Pakistan relations shall become then highly susceptible to 
miscalculations. In Islamabad, as in Delhi, it is time to let 
analysis prevail over instinct.
Pakistan should weigh its alternatives in case India does 
weaponize. A number of questions arise; among them the following. 
What strategic or political benefits accrue from renouncing 
Pakistan's posture of ambiguity? Security being the objective, why 
will open  as against understood / assumed  possession of nuclear 
weapons enhance its security. Will the pressure of great power on 
Pakistan be comparable to their pressure on India? Are we willing 
to bear those pressures? What kind of arms race shall become 
inevitable as a result of two-way weaponization? Is Pakistan in a 
position to enter such an arms race against India? What,if any, are 
the strategic, political, and economic advantages in continuing to 
keep a posture of ambiguity? There is a taboo of sorts on this 
subject. Officials could do citizens the favour of initiating the 
needed discussion.
There is crying need also to review our Kashmir policy. Ground 
realities have changed in the valley. I have argued this case 
repeatedly and at length in this space. Quotations from General 
Sunderjee and citations of Indian human rights violations cannot 
change those realities. If the national interest is to be served, 
they ought to be confronted.
But nothing is more central right now to Pakistan's security than 
peace in Afghanistan and improvement in relations with Iran. They 
are neighbours with long borders with Pakistan, and share with us 
the affinities of culture, history and faith. Since Pakistan's 

founding, Iran had been a loyal friend, and a source of security 
because our interests were complimentary. Harmony is our 
geopolitical imperative. In recent years our policy or the 
perception of policy, particularly as it concerns Afghanistan, has 
soured relations between us. It must be restored to its natural, 
collaborative state. There is no place more central to starting 
this process than Afghanistan.
Not long ago our officials used to claim kudos for bleeding the 
Soviet Union in Afghanistan. The Soviets departed. The Americans 
left also having cashed in there investments. A decade later, 
Afghanistan's Mujahideen are continuing to make mince meat of the 
country and its hapless people. Our officials deny responsibility 
with impressive ingenuity and zero effect.
Two facts about this ugly civil war are incontrovertible: Pakistan 
is the dominant power in relation to Afghanistan, the strongest, 
most retrograde, and anti-Shi'a warring faction enjoys its support. 
Iran, along with Uzbekistan and Russia, is aiding the Taliban's 
fractious opponents. Thus external factors have become organically 
linked to Afghanistan's warrior culture, and its economy of drugs, 
guns, and smuggling. If peace is a goal, those links must be 
broken. There is no point in apportioning guilt. The problem and 
opportunities can be identified.
Afghanistan has lost its centre. The people that were known in 
traditional Muslim societies as ahl al-hall wal aqd have vanished 
from it. There are no peace makers left in Afghanistan. That 
possibility lies outside of it. That responsibility rests with 
Pakistan and Iran, with the United Nations serving as a 
facilitator. Only when a peace process starts in earnest can one 
persuade the United States, European powers, and Japan to provide 
the incentives of a meaningful aid package for Afghanistan's 
reconstruction. Ambassador Lakhdar Brahimi, a highly respected 
Algerian diplomat, arrives in Islamabad today seeking peace for 
Afghanistan in the United Nations' behalf. The time to begin the 
high game of peace is now. May one hope that Prime Minister 
Vajpayee will have the pleasure of watching Pakistan score this 

                            S P O R T S 
Pakistan win Test and series after jingly-jangly ride
Qamar Ahmed

HARARE, March 25: Pakistan notched up a three-wicket win over 
Zimbabwe in the second and final Test to wrap up the two match 
series 1-0 here on Wednesday.
This was the sixth win in a Test against Zimbabwe but not without 
those usual hiccups. Pakistan, in fact, made heavy weather of it 
through some reckless batting.
That Pakistan managed to get to the required target of 192 was 
mainly due to some good batting by Saeed Anwar who made 65 and a 
highly disciplined innings by Yousaf Youhana who made 52 invaluable 

Pakistan had started the day at 58 for one, needing still 134 runs 
to win the Test and the series. Mohammad Wasim, who had made 192 in 
the first innings, was run out in the second over of the day at his 
overnight score of eight. There was a comfortable single as he 
drove to mid-on region but Saeed Anwar sent him back. The two put 
on 45 runs for the second wicket.
Minutes later, Inzamamul Haq, like in the first innings, played 
another wild stroke to hit the bowler out of sight and had to pay 
the price for it. Adam Huckle had invited him to play a massive 
drive which he missed and was stumped by Andy Flower for 10.
Saeed Anwar was timing his shots well and looked like winning the 
match on his own when his downfall came. Having reached his 16th 
Test fifty with seven fours and a six in 95 minutes batting. He was 
65 when he played uppishly at short mid-wicket to substitute Andy 
Whittall off Guy Whittall and was caught low down.
With Yousaf Youhana he had added 28 runs.
With his dismissal, Pakistan had  once again started to look in 
danger of losing their way. Just before lunch Pakistan lost yet 
another wicket, that of Moin Khan who offered a simple catch to 
Alistah Campbell at second slip.
Pakistan were 149 for 5 at lunch and needing another 43 runs to 
win. Yousaf Youhana and Ali Naqvi, who had come late in the order 
because of a twisted ankle, were at the crease.
Naqvi not able to move his feet properly was, however, given out 
immediately after lunch off spinner Adam Huckle by the Zimbabwean 
umpire Russell Tiffin. Naqvi was astounded and left the crease 
reluctantly. He did not seem to have touched the ball as Andy 
Flower appealed for a catch at the wicket.  Youhana, however, was 
well disciplined and never missed any opportunity of picking up 
runs. He reached his third fifty of the series in 123 minutes 
batting with the help of five fours and a six off Huckle. Minutes, 
later, he was out at 52 off Guy Whittall when Murray Goodwin caught 
him at gully. Pakistan needed six more runs to win which was duly 
reached without any further damage.
Rashid Latif hit the winning single to wrap up the series.
Mohammad Wasim was the Man-of-the-Match and Waqar Younis was named 
the Man-of-the-Series for his 13 wickets in two Tests at an average 
of 17.76.
Pakistan play two one-day games here at Harare on Saturday and 
Sunday before going back to South Africa for the Triangular Series.

"The fourth innings of a Test is often difficult and we played very 
badly in the middle order," Pakistan captain Rashid Latif said.
"Inzamam (ul Haq), who is our main batsman, went cheaply but Yousaf 
Youhana played brilliantly and Saeed Anwar played well.
"Plus Mohammad Wasim produced that brilliant 192 in our first 
innings and that was a match-winning knock for us."
Zimbabwe coach Dave Houghton pinpointed dropped catches in 
Pakistan's first innings as the biggest disappointment of the Test.
"We had them at 187 for eight in their first innings just before 
the end of the second day but five dropped catches cost us dearly," 

Houghton said.

Jansher crushes Mir Zaman to retain trophy
A. Majid Khan

KARACHI, March 22: Defending champion Jansher Khan, currently 
ranked world no two, took 49 minutes to crush reigning Asian 
champion Mir Zaman Gul,seeded fourth, with a straight games victory 
to retain the title of the PIA Open Squash for the Hasan Musa 
Trophy here on Sunday afternoon at the Jahangir Khan Squash 
Top seed and pre-tournament favourite Jansher triumphed 15-12 (18 
minutes), 17-16 (21 min), 15-11 (10 min) in the final of the 
tournament which carried total cash prize of Rs 80,000. The co-
sponsors of the event included L.G. Electronics, Pak Suzuki, 
Cocacola and Wilson.
Jansher Khan got a winner s cash prize of Rs 15000 and runnerup Mir 
Zaman Gul Rs 9,200,beaten semifinalists-Rs 5,500 each, 
quarterfinalists-Rs 3,200 each, second round losers -Rs2000 each 
and first round losers-Rs 1,000 each.
Sindh Governor Moinuddin Haider,who was the chief guest, gave away 
the prizes. Pakistan Squash Federation Senior Vice-President Air 
Vice Marshal Zahid Anis, who flew here yesterday from Islamabad, 
witnessed the final.
Jansher Khan, aged 28, demonstrated his overall superiority over 
31-year-old Mir Zaman Gul, who once had been among the top ten of 
the world but gradually has gone down in rankings and is currently 
ranked no 38. Howeer, he put up spirited fight in the first two 
games but later on faded out.
Today playing with the knee cap on his left knee, Jansher Khan was 
more quick and agile on the front of the court in executing 
tantalising drop shots as well as in the court coverage. However, 
the Khan did commit mistakes when he went for hasty winners to hit 
the board.
Mir Zaman Gul,who yesterday recorded an upset victory over second 
seeded Zubair Jahan Khan in a marathon semifinal, put up a gallant 
fight. He came closer to snatch the closely contested second game 
before Jansher, amazingly recovered, to ensure a straight game 
victory. Nevertheless Mir Zaman played all-out attacking game and 
hit delightful drops, angles and crosscourt shots and lobbed when 
trapped on the front of the court.
Watched by packed to capacity Championship court gallery, Jansher 
Khan twice went in front 3-2 and 4-3 getting stroke in the first 
game. After 5-5 Mir Zaman hit a forehand volley to nick and he was 
also awarded two successive penalty strokes to lead 8-5. In a game 
of short rallies both the players tried to outwit each other in 
stroke making and twice Mir Zaman came in the way of the Kahn to be 
panalised for two penalty strokes. At 8-8 referee Zarak Jahan Khan 
issued a conduct warning to Mir Zaman.
Jansher Khan trailed 9-10 when he produced a brace of his winning 
backhand drops to take control of the proceeding. He was 13-10 up 
when Mir Zaman also hit two winners to be 12-13. A 25-stroke rally 
followed and Jansher went 14-13 ahead with a perfect forehand drop 

and when Mir Zaman hit the board the Khan was the winner at 15-12.
Jansher appeared in total control of the second game when he raced 
to 9-3 lead, producing a series of winners as Mir Zaman turned 
erratic. However, Mir regained his touch and also hit winner after 
winner. The Khan seemed to have lost his concentration as he 
committed several unforced mistakes. The score stood 11-11, 12-12, 
13-13 before Mir Zaman volleyed to nick 14-13 but Jansher Khan made 
it 14-all with classic forehand volley to nick after a 20- stroke 
The fans enjoyed the fascinating second game and when Mir Zaman was 
16-15, ahead Jansher rose to great height to show has class by 
slamming three winners in a row for a 17-16 win.  After 5-all in 
the third game, Jansher Khan mounted considerable pressure on his 
opponent by moving him all over the court. Maintaining a good 
length and varying the pace of the game Jansher went ahead 11-7 and 
finishing the match at 15-11 as Mir Zaman, made many mistakes.

Pakistan to meet India in ICC trophy opener
Sports Reporter

KARACHI, March 21: The draws of the International Cricket Council 
(ICC) Trophy pit Pakistan against India in the opening match of the 
knock-out gala.
The match between the former world champions will be played on Oct 
5 in the tournament that is being staged at Dhaka's National 
The opening event will, however, be played between England and 
Zimbabwe on Oct 1. The match would be a qualifier for the final 
stage and the winner will meet world champions Sri Lanka on Oct 4.
The final of the competition, being participated by all nine Test 
playing countries and billed as second biggest event after the 
World Cup, will be played on Oct 9.
The match between Pakistan and India means that one of the teams 
would be eliminated from the tournament after their very first tie. 
To add woes to the worries, the winner of the match will play 
either Sri Lanka or England or Zimbabwe in the semifinal on Oct 7.
The draws of the tournament, according to PCB sources, have been 
prepared without taking consent of the participating teams. They 
said there was no criterion and the matches were fixed according to 
the whims and fancies of the local authorities.   The board sources 
pointed out that the three sub-continent teams were fixed in the 
lower half while the rest of the teams were placed in the upper 
"The draw seems to be a clash between sub-continent and rest of the 
World," they argued.
The PCB sources said they had no problems in facing India in the 
first game but added that the real thrill of the tournament would 
have been if the two sides had been placed in different halves with 
a possibility of meeting only in the final.
"More than half of the attraction (in the tournament) will be over 
after the Pakistan and India match," they believe.
The complete draws are:

Oct 1: Qualifying match between England and Zimbabwe.
Oct 2: Australia v New Zealand
Oct 3: West Indies v South Africa
Oct 4: Sri Lanka v qualifier (England or Zimbabwe)
Oct 5: Pakistan v India
Oct 6: first semi-final (winner of Oct 2 match v winner of Oct 3 
Oct 7: second semi-final (winner of Oct 4 match v winner of Oct 5 
Oct 9: final.
Informed sources said the Bangladesh Cricket Board (BCB) were 
planning to organise all the match under lights. For this, 
deliberations were still in progress. However, if the lights could 
not be installed, the match would be played in sun light.

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