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CONTENTS ===================================================================
NATIONAL NEWS + Ordinance amended: Army gets powers to investigate cases + India pushes for economic bridge with Pakistan + 13 new oil, gas fields discovered + MQM seeks UN help against human rights violations + IMF okays $5.5bn bailout package + Politicians oppose imposition of Article 245 + US may write off some of loans against F-16s' price + Pakistan, US discuss Kashmir options + More tests of missiles await govt permission + Ehtesab benches' verdict can be challenged: SC told --------------------------------- BUSINESS & ECONOMY + Approval likely: Sale of $ bonds by money changers + Change in composite rates on cards + Forex reserves up at $444m + ECC allows export of 0.5 million tons sugar + 3m tons of rice to be exported: Lalika + Increase in wheat support price urged + Task force to tackle millennium bug + Banks to maintain SLR on rupee funds + Banks asked to remove hurdles for loan seekers + Stocks lose 9.68 points on weakness of base shares --------------------------------------- EDITORIALS & FEATURES + Governor's rule Ardeshir Cowasjee + Can the MQM grow up? Irfan Husain ----------- SPORTS + Pakistan beat Zimbabwe to clinch one-day series 2-1 + Pakistan breeze into final of World Cup blind cricket + Davis Cup: Swedish coach to train Pakistan squad

Ordinance amended: Army gets powers to investigate cases
Bureau Report

ISLAMABAD, Nov 26: The federal government on Thursday notified that 
armed forces will have the power to conduct investigation 
"appropriate cases" of terrorism.
President Rafiq Tarar on Thursday issued an ordinance amending the 
Armed Forces (Acting in Aid of the Civil Power) Ordinance, wherein 
the armed forces have been empowered to investigate "appropriate 
The amended ordinance to be called the Pakistan Armed Forces 
(Acting in Aid of Civil Power) (Amendment) Ordinance, 1998 has 
substituted section 5 of the ordinance which had provided that the 
armed forces might supervise investigation of any case but that too 
on the direction of the federal government.
The new section stated that investigation of all the offences 
specified in the Schedule to this ordinance should be conducted in 
accordance with the provisions of the Code of Criminal Procedure, 
1898 (Act V of 1898) and in appropriate cases the same may be 
conducted by the armed forces.
APP adds: When asked about the objective of the ordinance, 
Secretary Law Choudhry Irshad Ahmad said by enforcing the 
ordinance, the government had withdrawn its power to decide which 
cases were to be investigated by the armed forces.
He said, under the new ordinance, the armed forces will have a 
neutral and independent position to decide about the cases, in 
which it may decide to investigate. He said the army would be in a 
position to conduct investigation into cases where it considers it 
NNI adds: By virtue of the amendment, the armed forces have now 
been empowered to investigate and collect evidence through their 
own intelligence agencies as per the Army Act. The evidence will be 
placed before the military courts, which will exclude the chances 
of political parties or groups levelling allegations of 
government's partiality or political victimization, sources said.
A legal expert pointed out that the evidence collected by the armed 
forces would have to be relied upon by the civil prosecutors to be 
appointed by the government.
The following is the text of the said Ordinance:-
"ORDINANCE to amend the Pakistan Armed Forces (Acting in Aid of the 
Civil Power) Ordinance, 1998
WHEREAS it is expedient to amend the Pakistan Armed Forces (Acting 
in Aid of the Civil Power) Ordinance, 1998 (XII of 1998), for the 
purpose hereinafter appearing;
AND WHEREAS the National Assembly is not in session and the 
President is satisfied that circumstances exist which render it 
necessary to take immediate action;
NOW, THEREFORE, in exercise of the powers conferred by clause (1) 
of Article 89 of the Constitution of the Islamic Republic of 
Pakistan, the President is pleased to make and promulgate the 
following Ordinance:-
1. Short title and commencement:- 
(1) This Ordinance may be called 
the Pakistan Armed Forces (Acting in Aid of the Civil Power) 
(Amendment) Ordinance, 1998.
(2) It shall come into force at once.
2. Substitution of section 5, Ordinance XII of 1998:- In the 
Pakistan Armed Forces (Acting in Aid of the Civil Power) Ordinance, 
1998 (XII of 1998), for section 5, the following shall be 
substituted, namely:-
"5 Investigation:- The investigation of all the offences specified 
in the Schedule to this Ordinance shall be conducted in accordance 
with the provisions of the Code of Criminal Procedure, 1898 (Act V 
of 1898), and in appropriate cases the same may be conducted by the 
Armed Forces".

India pushes for economic bridge with Pakistan

NEW DELHI, Nov 27: An economic bridge is the only way to ease 
political tensions between Pakistan and India, India's Junior 
Foreign Minister Vasundhara Raje said on Friday.
"The only way out of the political dilemma we face vis-a-vis 
Pakistan...is to find an economic rationale that itself will create 
a stake in the narrowing down of political differences," she said 
in a speech on economic diplomacy.
Addressing members of the women's wing of the Federation of Indian 
Chambers of Commerce and Industry (FICCI), Raje said events after 
New Delhi's nuclear tests this year showed that economic relations 
were vital for political security.
"Post Pokhran Two events have shown us that not only does enhanced 
economic strength and global engagement give greater flexibility 
and multiple options in the pursuit of our economic objectives but 
can also be turned to the advantage of our political, strategic and 
security objectives," Raje said.
While pursuing close economic ties with Pakistan, India is pushing 
for a South Asian Free Trade Area (SAFTA). 
New Delhi was in the process of working out a free trade 
arrangement with Sri Lanka and has also offered it to Bangladesh, 
Raje said.

Nepal, Bhutan and Maldives are the other nations.Reuter

13 new oil, gas fields discovered

ISLAMABAD, Nov 27: Oil and gas explorations in Pakistan have 
yielded as many as 13 new fields rich with exploitable hydrocarbon 
resources, says an official source.
These fields, when developed, would add six trillion cubic feet of 
gas alone to the gas availability in Pakistan, resulting in a 
saving of $5 billion for the country per annum.
So far, natural gas has been used as domestic fuel and also in 
industrial production and generation of electricity. In recent 
years, however, its importance as an environmentally clean energy 
resource has gained increasing attention of the government 
Thus, at present, 28 CNG (Compressed Natural Gas) stations are 
providing gas to vehicles. A major development in this regard has 
been the increasing involvement of the private sector in the 
establishment of CNG stations and marketing of gas cylinders for 
vehicle owners as well as domestic consumers.
The federal government recently approved a plan to convert 100,000 
vehicles to CNG at 150 new CNG stations to be established all over 
Pakistan in the next two years. The objective is to promote 
domestic environmental friendly fuel and save foreign exchange by 
substituting imported gasoline with natural gas.
Thirtyone CNG stations are already under construction in the 
provinces of Punjab, Sindh and NWFP. These would have the capacity 
to cater to 25,000 vehicles. However, Balochistan has yet to 
benefit from this resource, although it has been the main source of 
gas supply to the rest of the country.

MQM seeks UN help against human rights violations

KARACHI, Nov 25: The Muttahida Qaumi Movement (MQM) on Wednesday 
urged the UN Secretary-General, Kofi Annan, and human rights 
organizations the world over to take notice of the violations of 
human rights and police excesses in Sindh, especially in Karachi.
The appeal was made by deputy convener of the MQM, Senator Nasreen 
Jaleel, at a news conference at Karachi Press Club.
A letter signed by Senator Aftab Shaikh and Nasreen Jaleel have 
been sent to Mr Annan, saying that two MQM parliamentarians, Shoaib 
Bokhari and Wakil Jamali, were under enormous pressure by the Nawaz 
Sharif government to change their allegiance.
Senator Nasreen Jaleel said the torture and pressure tactics used 
by the police to force the interned leaders to change their 
loyalties was not a new phenomenon. In this context, she cited the 
case of Firoza Begum who had been compelled to change party 
loyalties and to join Abdullah Shah ministry.
She also condemned the alleged firing by unknown attackers on the 
Colombian de-weaponization experts in Liaquatabad, while it had 
been on a conducted tour of the area in an armoured personnel 
carrier on Tuesday.

Senator Nasreen Jaleel termed it a conspiracy to malign the MQM.
She alleged the act was a conspiracy aimed to demoralize and 
belittle the Muttahida on the international scene and to portray it 
as a terrorist party in Pakistan.
"Almost all the Muttahida workers are in hiding, and the visit of 
the Colombians to the area was only in the notice of the 
government," She claimed
Senator Nasreen Jaleel said after the incident an MQM delegation 
had apprised the UNDP-supported mission of the factual position 
regarding the ongoing police operation against peaceful citizens in 
the province, in a congenial and friendly meeting.
The MQM deputy convener said the arrest of MQM activists in the 
firing incident was yet another example of police excesses and 
state-sponsored terrorism.
She said: "Military courts are being set up for those cities where 
Mohajirs are in a majority, which has brought the government's 
anti-Mohajir bias in the open.
"Why the government is not establishing these courts in those areas 
of Punjab and elsewhere where the law and order situation is bad."
She claimed that during Basant Mela in Punjab, men and women used 
firearms, but the local administration had taken no action for the 
possession and use of firearms.
She claimed that the DIG police Karachi was incompetent and junior 
which had caused heart burning among the police officers.
The senator alleged that MPA Shoaib Bokhari was being tortured to 
force him to become an approver and betray the confidence of 
thousands of people he represented.
Mr Bokhari's mother said she had met her son in airport police 
station in the presence of the duty officer, which, she said, was 
not fair. She also objected to her son being taken to the court 
with handcuffs.top10

IMF okays $5.5bn bailout package
Bureau Report

ISLAMABAD, Nov 25: Pakistan and the IMF have reached an agreement 
on US$5.5 billion bailout package to be jointly offered by the 
World Bank, the Fund, Asian Development Bank and Paris and London 
"We have successfully concluded talks with the IMF mission for $5.5 
billion programme that also included debt rescheduling of about $3 
billion by London and Paris clubs", claimed Finance Minister Ishaq 
Dar at a news conference here on Wednes-day.
This is for the first time that there was no joint news conference 
and the seven-member IMF mission, led by Ms Sena Eken left early on 
Wednesday morning for Washington after holding 12-days of talks 
with the Pakistani authorities.
"All matters stand resolved with the IMF and the World Bank", Mr 
Dar claimed.
However, the local IMF office issued a press statement which was 
read out by the minister at the press conference.
The statement says: "The IMF mission has concluded discussion with 
the Pakistani authorities and reached an agreement on a programme 
of economic policies.
"After the review and approval by Fund Management, it will serve as 
the basis for consideration by the IMF executive board for 
reactivation of ESAF/EFF programme.
"The programme has sizable financing gap to be filled from several 
sources. The financing package envisaged under the programme will 
enable Pakistan to normalise its external payments relations.
"Effective implementation of the agreed programme, supported by 
adequate financing, will also pave the way for restoration of 
confidence and resumption of high and sustainable rates of growth", 
the IMF statement added.
The finance minister also said that the Paris Club would meet on 
Dec 10 to consider debt rescheduling for Pakistan. He said that the 
IMF board would clear the agreement for the reactivation of 
ESAF/EFF. "But in case the board does not meet next month, we are 
not going to default", he said.
Mr Dar said Pakistan had repaid loans to preferred creditors during 
the last few months.
He said foreign exchange reserves currently stood at $450 million 
after having paid some important loans.
Giving details of the programme, Dar said out of $5.5 billion 
programme, the World Bank and the IMF would jointly provide $980 
million, while $350 million would be extended by ADB. "Rest of the 
financing relates to the debt rescheduling by London and Paris 
clubs", he said.
The minister added that since an agreement had been reached with 
the IMF, issues related to both the clubs would be resolved without 
any problem.
"In fact both the clubs had said that Pakistan should first achieve 
an agreement with IMF and only then come to us", he said adding 
that things were now bound to settle with all the international 
About the power tariffs, the finance minister said that the 
National Electric Power Regulatory Authority (NEPRA) would meet 
periodically to determine future tariffs and there would be no 
interference by any government agency in this behalf.
Asked about the IPPs' issues, he said that five of them had already 
lowered their tariffs and the remaining 13 had been asked to 
negotiate with the newly-created independent committee.
To a question he said remittances dropped to 37 per cent during the 
first four month of the current financial year.
He repeatedly said that there were no visible or invisible 
conditions that eventually led to an agreement with the IMF. "I 
have told you that we re not here to compromise the national 
interest as was done by the previous government on many issues", he 

Politicians oppose imposition of Article 245

KARACHI, Nov 23: The parliamentary leader of Muttahida Qaumi 
Movement in Sindh Assembly, Dr Farooq Sattar, has said the 
promulgation of presidential ordinance under Article 245 in Sindh 
and imposition of governor rule are aimed to eliminate the 
Muttahida Qaumi Movement.
This he stated while speaking at a seminar on promulgation of the 
presidential ordinance here on Monday.
He said affiliation with the MQM had become an offence and on this 
pretext people were being harassed and victimized. The only agenda 
was to crush the MQM by hook and by crook and to capture the 
mandate of the MQM after setting it aside from politics.
Dr Sattar maintained that the imposition of governor rule and the 
promulgation of Presidential Ordinance under Article 245 was 
undemocratic and unconstitutional.
He warned that it would yield dire consequences as the MQM enjoyed 
the mandate of the masses, being the first biggest party of urban 
areas of Sindh, second biggest party of the province and the third 
largest party of the country.
He said by conducting a media trial of the MQM the government was 
once again trying to tarnish its image, and for the purpose, so-
called confessional statements were being aired on television.
Speaking on the occasion Prof Ghafoor Ahmed, deputy chief of 
Jamaat-i-Islami, said the promulgation of Presidential Ordinance 
was against the constitution and the law.
Prof N.D. Khan of the PPP said as early as the country should get 
rid of the present government and fresh election be announced, it 
would be better for the nation.
Mian Ejaz Shafi, a PML MNA from Karachi, dwelling upon the subject, 
supported the promulgation of Presidential Ordinance saying that 
the MQM had done nothing to restore peace as it was its prime 
responsibility after having the mandate of the urban people.  PPI

US may write off some of loans against F-16s' price

WASHINGTON, Nov 21: The US is considering writing off some of 
Pakistan's loans against the payments that have to be made for the 
F-16 aircraft, informed diplomatic sources said on Saturday.
These US loans to Pakistan would be slightly more than the amount 
Washington will have to reimburse, in case Pentagon is able to sell 
or lease the Pakistani aircraft to New Zealand.
If an agreement between officials of Pakistan and the US is reached 
on this resolution of the F-16 aircraft issue, it could be 
presented as a major success of Mr Nawaz Sharif's visit to the 
White House, sources said.
They said at the moment Pakistan is claiming the entire $658 
million it had paid for the 28 F-16 aircraft and a court case may 
be filed in the near future.
But once Washington finalises a deal with New Zealand, Wellington 
will be asked to pay the price directly to Islamabad.
A senior administration official told Dawn the State Department was 
continuing to work on the F-16 issue and hopefully there would be 
some progress by the time Mr Sharif arrives here for the official 
visit on Dec 2.
Pentagon has already given its price tag for the Pakistan planes to 
Wellington, but a spokesman of the New Zealand Embassy told Dawn on 
Thursday no quick decision was expected and there may even not be 

any decision before the visit of Mr Sharif to Washington.
The senior defence diplomat of the New Zealand Embassy in 
Washington was not even aware of the fact that Mr Sharif was coming 
to Washington for talks with President Clinton on Dec 2.
The time frame he gave for a possible decision was in the middle of 
December when the NZ government would make a decision about the F-
16 and other military equipment to be purchased from the US.

Pakistan, US discuss Kashmir options
Shaheen Sehbai

WASHINGTON, Nov 26: Top US and Pakistani negotiators have 
separately carried out studies on what alternative options could be 
pursued to resolve the Kashmir dispute other than implementing the 
50-year old UN Security Council resolutions.
The "other options" issue came up in recent Talbott-Shamshad talks 
when the US was asked to play a more serious role in resolving this 
issue, as it had done in Bosnia, Ireland and Middle East.
A knowledgeable source said Shamshad Ahmed suggested to Talbott to 
study the various proposals that had been made over the years to 
solve the problem, both by Indians and Pakistan at different 
forums. "Talbott ordered his team of researchers to undertake the 
study but in a sharp diplomatic response he also asked Mr. Ahmed to 
undertake a similar study in Pakistan as well," the source said.
Pakistani diplomatic sources said Mr. Ahmed did order that study in 
Foreign Office and his researchers came up with more than 40 
alternative solutions to the Kashmir crisis, other than holding the 
elusive plebiscite in the Indian-held territory.
The sources, however, emphatically stated that Pakistan had told 
the US that it could not make any official move on even discussing 
these options at any forum as this would militate against the 
years-old Pakistani stand on the issue.
"But the US was given the encouragement to float some of these 
proposals as its own and push both India and Pakistan to come to 
some agreement to resolve the issue," sources said.
Anticipating that some added pressure on India may be generated 
during the Nawaz Sharif visit to the White House to settle the 
issue, the Indians are already hardening their bargaining 
positions, diplomats said.
A senior Pakistani diplomat said India had recently reversed its 
years-old position on redeployment of troops on the Siachin Glacier 
and had refused to discuss the subject of redeployment with the 
Pakistani defence negotiators in New Delhi.
The diplomat said in the past India had agreed to redeploying the 
troops on Siachin and the Pakistani team of defence experts led by 
secretary defence Lt.Gen. Iftikhar Ali Khan was expecting to 
discuss the matter further and finalise the levels of redeployment.
"The Pakistanis were shocked to hear the new Indian position. What 
redeployment are you talking about, they were told. Siachin is in 
Indian territory and Pakistan is no one to tell us where to deploy 
our forces," the Indians said.
The Indians were only prepared in the defence talks to discuss a 
"ceasefire" on Siachin and that too only in the interest of 
avoiding human casualties. They were not interested in the 
Pakistani proposals of the levels of redeployment.
A diplomat explained this going back on a position, which had been 
conceded by the Indians years ago to the extent that even an 
agreement on Siachin had already been drafted and remained just to 
be signed.
He said: "They want to use the Siachin issue as a bargaining chip 
for the negotiations they may have to start on Kashmir under 
international and specifically American pressure."

More tests of missiles await govt permission

ISLAMABAD, Nov 24: Renowned nuclear scientist Dr Abdul Qadeer Khan 
on Tuesday declared Pakistan has begun serial production of Ghauri 
missiles saying that "we will test-fire more missiles as soon as a 
go-ahead signal is received from Prime Minister Nawaz Sharif".

"I have no problem in carrying out more missile tests as it is a 
matter of just few hours but we await a go-ahead signal from the 
Prime Minister", he said while answering questions by reporters 
here at the Convention Centre after distribution of cheques by 
Prime Minister Nawaz Sharif among Pakistani affectees of the Gulf 
Responding to a question, he made it clear that no power on earth 
could force Pakistan either to dismantle or roll back its nuclear 
programme." We have a very strong and stable government, he added, 
by Prime Minister Nawaz Sharif, who cannot be pressurized or 
He said no body right from the government to the people as well as 
the scientists would agree to dismantle or roll back country's 
nuclear programme. Therefore, there is no question of choosing any 
of the two options.
He said there were plenty of Ghauri missiles with us and their 
serial production had also commenced adding that Chief Minister 
Punjab Mian Shahbaz Sharif was also shown these missiles when he 
last visited Kahuta Research Laboratory.
Replying to another question, Dr Qadeer said Ghauri had a range of 
1500 kilometres which could be enhanced up to 1700 to 1750 
kilometres if a smaller warhead was installed with the missile. "I 
can assure you that it has the capability to target Indian cities 
of Madras and Calcutta".
Answering a question, he confirmed testing of an Anti-Tank missile, 
equipped with Night Vision Device recently saying that earlier, "we 
used to test Baktar Shikan missile but this was the first night 
vision missile which was tested recently and it hit the bull's eye.
Asked whether Pakistan had a proper site to carry out nuclear tests 
if India conducted more nuclear explosions in future, he said 
"there is no problem of a new site as we are determined to come up 
to the expectations of our nation".

He replied in affirmative when asked if Pakistan had a proper and 
effective command and control system. "We have a very strong and 
effective command and control system which is being supervised by 
the Prime Minister, Chief of Army Staff and nuclear experts".
Asked if the Americans were pressurizing Pakistan on the issue of 
export control system, he said they were neither pressurizing 
Pakistan nor were they asking for roll back of the programme. Their 
only worry is that the nuclear technology should not go into "wrong 
To a question about Fissile Material Cut Off Treaty (FMCT), he said 
it would affect Pakistan's capability as "we will have to maintain 
a proper record of fissile material production and other relevant 
When his attention was drawn towards a recent statement of US 
Secretary of State Strobe Talbott that America wanted gradual 
dismantling of nuclear and missile technologies as well as their 
deployment, he said "they have a programme to eliminate Muslims 
from the scene. How can they succeed now particularly when their 
efforts failed to yield any results even during last 1400 years. 
What they are thinking is just a part of their wishful thinking".

Ehtesab benches' verdict can be challenged: SC told
Bureau Report

ISLAMABAD, Nov 26: The counsel for the opposition leader, Benazir 
Bhutto, on Thursday argued that appeals against the interlocutory 
orders of Ehtesab bench could be challenged in the Supreme Court as 
the Ehtesab benches were "high courts".
When the petitions of Benazir Bhutto were taken up today by the 
two-member bench, headed by Justice Saiduzzaman Siddiqui and 
consisted of Justice Abdur Rehman Khan, asked Choudhry Aitizaz 
Ahsan to address the court on the legal question.
Justice Siddiqui observed that the court should be addressed on the 
question whether any appeal under Article 185 of the Constitution 
could be filed in the Supreme Court against the order of Ehtesab 
bench which was not final.
The counsel for the petitioner argued that the Ehtesab bench was a 
high court for all practical purposes and referred to a number of 
cases from Pakistani jurisdiction in his support.
Aitizaz said a case which was before an Ehtesab bench, comprising 
Justice Ahsanul Haq and Justice Saeedur Rehman Farrukh, was 
referred to another Ehtesab bench, comprising different judges, who 
passed the freezing order of her accounts without hearing her. He 
stated that it was only possible because the Ehtesab bench were 
treated as high court.
He said judges of Ehtesab bench were designated by chief justice of 
a high court to hear Ehtesab cases referred to a high court by the 
chief Ehtesab commissioner. He said Ehtesab benches could not be 
equated with the special courts like customs courts etc.
Aitizaz said the judges of all the Ehtesab benches enjoyed all the 
powers of high court judges. "Ehtesab benches are high court which 
deal with special law  Ehtesab Act," he argued.
The counsel for the petitioner referred to Article 175 (2) to show 
that appellate jurisdiction of the court was constitutional which 
could not be taken away by an ordinary act. He said that if it was 
assumed that Ehtesab benches were special courts and no appeal 
could be made against its interlocutory order, dire consequences 
would flow from this assumption.
Attorney General Choudhry Mohammad Farooq, who appeared on court 
notice, asked the SC to adjourn the case. The court adjourn the 
case till Nov 30.

Approval likely: Sale of $ bonds by money changers

KARACHI, Nov 27: Finance Minister Ishaq Dar told a meeting of 
private licensed money brokers on Friday that they would shortly be 
allowed to sell the special dollar bonds, said the chief of 
Pakistan Forex Association, Malik Boostan.
"The minister has told us that the State Bank would shortly issue a 
circular in this respect," Boostan told Dawn by phone after 
attending the meeting at the SBP office.
But the press release issued by the State Bank was silent on this 
subject. The release issued by the Association itself did not 
mention it.
"This is not there in our press release but I tell you the minister 
has assured us of allowing dollar bonds trading through money 
changers," Boostan insisted.
The press release issued by Pakistan Forex Association said the 
State Bank might allow the banks to start issuing cheques to the 
money changers for encasement of money transferred from one place 
to another through electronic means. It said the association 
recommended to the finance minister that dollar prize bonds be 
issued on the pattern of rupee prize bonds to ease off the foreign 
exchange crunch. It did not say how the finance minister received 
the proposal.

Change in composite rates on cards
Mohiuddin Aazim

KARACHI, Nov 27: The composition of composite exchange rates is 
going to be changed in the coming days but the official exchange 
rate of Rs 46 to a US dollar will remain unchanged for the time 
This indication was dropped by Finance Minister Ishaq Dar at a 
meeting with heads of banks held here at the State Bank office on 
"The minister told us that the multiple exchange rates would be 
phased out adding that the composition of composite rate will be 
changed as a first step," said a source privy to the meeting.
Currently the composite rate is the simple average of official rate 
of Rs 46 to a dollar and floating inter-bank rates which means a 
50:50 ratio of the two rates.
The bankers who attended the meeting said the minister did not 
disclose the proposed ratio. But it is generally believed that the 
ratio would be changed to raise the percentage of floating inter-
bank rates and reduce the official rates to make the new composite 
rates more market-oriented.
"If this happens it would simply be a disguised devaluation," said 
a participant of the meeting adding that the minister made it clear 
that there would be no up-front rupee devaluation. He said the 
minister elaborated the term up-front devaluation by saying that 
the recently-concluded talks between Pakistan and the IMF did not 
stipulate such a measure.
Sources privy to the meeting said the finance minister also made it 
clear that import of wheat and petroleum products would continue to 
be made at the official exchange rate of Rs 46 to a US dollar. They 
quoted him as saying that the holders of frozen foreign currency 
deposits would also continue to get the deposits converted into 
rupees at the same rate.
The sources said the issue of maturing swap funds also came up 
adding that it was decided in principle that the banks would roll 
over these funds for at least 2 more years. They said the banks 
were told that the State Bank would pay 20 per cent of the 
principal amount of these funds in the first year and the remaining 
80 per cent in the second year.
The meeting was told that some $1.2 billion worth of swap funds had 
matured and the same had to be rolled over in any case because of 
the current foreign exchange crisis facing Pakistan.
The sources said State Bank Governor Dr Muhammad Yaqub told the 
meeting that the November 30 deadline set for liquidation of 
balances in frozen foreign currency deposits as collaterals against 
loans would not be extended.
The minister told the bankers to persuade their clients to get 
these collaterals converted into the special dollar bonds which 
would also help the government transfer its foreign exchange 
liabilities from short term to long term.
The sources said the finance minister warned the banks not to allow 
speculations in the inter-bank foreign exchange market for profit-
taking. He said SBP would take stern actions against the banks 
involved in speculations.
The sources said the minister invited proposals from the banks and 
financial institutions for speeding up the recovery of stuck- up 
They said the bankers told him that implementation of decrees 
obtained against loan defaulters was a major impediment to 
efficient recovery and the minister promised to them that the 
government would try to address this issue.
The sources said the minister casually mentioned the figure of Rs 
200 billion as stuck-up loans but he neither elaborated it nor 
quantified the recovery that has been made so far.
An SBP press release said Finance Minister Ishaq Dar briefed three 
separate meetings including the one with the bankers on the 
understanding reached with the IMF. The other two meetings were 
held with money changers and members of export development 

"He explained that with this understanding and anticipated support 
of the World Bank and Asian Development Bank, balance of payment 
difficulties will be over, the preferred creditors will be paid on 
time, other debt will be regularised and all categories of payment 
will be soon made current," the release said. "It was also 
explained that the State Bank had enough foreign exchange resources 
to meet the essential foreign exchange obligations without 
requiring any "bridge financing" prior to the IMF Board meeting on 
Forex reserves up at $444m

KARACHI, Nov 26: Pakistan's foreign exchange reserves rose by $27 
million to $444 million on November 21 from $417 million on 
November 14.
The State Bank said on Thursday that on November 21 Pakistan had 
around $309 million worth of approved forex reserves and $135 
million worth of cash and short term securities held abroad.
The two figures stood at $314 million and $103 million on that day.
Senior bankers link the nominal increase in the reserves to faster 
inflow of export proceeds into the financial system and slightly 
reduced demand for foreign exchange by the importers.
In the middle of this month the State Bank had cut Nostro limits 
and Net open positions of the banks and reduced from 14 to 7 days 
the permissible period for the exporters to sell 50 per cent export 
proceeds in the inter-bank market. Bankers say the twin measures 
accelerated inflow of foreign exchange on the one hand and 
contained outflow through import financing on the other. Hence, a 
small build-up in the forex reserves.
Bankers say the reserves may increase further in the weeks to come 
after successful conclusion of talks between Pakistan and IMF on 
resumption of a $1.56 billion worth of stalled package.
On May 19 this year Pakistan had $1.4 billion worth of forex 
reserves which fell to $1.2 billion on May 28. Consequent sanctions 
and structural flaws in the economy caused a gradual depletion of 
the reserves.

ECC allows export of 0.5 million tons sugar
Bureau Report

ISLAMABAD, Nov 26: In view of a good sugarcane crop, the Economic 
Coordination Committee of the Cabinet (ECC) has decided to allow 
exports of 0.5 million tons of sugar.
The situation regards to exports will be reviewed in the first week 
of March, 1999.
It was also decided that 25% of total production by every mill will 
be obligatory for export and the balance to be sold in the local 
market. In case of non-compliance the mill will be charged Central 
Excise Duty at the rate of Rs 4.40 per kg.
The Committee, which met here on Thursday under the chairmanship of 
minister for finance and commerce Ishaq Dar, was also presented a 
detailed report on the wheat situation and its import requirement 
for the year 1998-99.
The meeting was informed that against the total purchases of 1.3 
million tons, a quantity of 0.8 million tons of wheat has already 
arrived/dispatched to the provinces/ agencies and the remaining 
will be available by the end of December.
While reviewing the situation pertaining to the sugar production, 
the ECC was informed that so far almost 400,000 tons of sugar have 
been exported since June 1, 1998 and more than 100,000 tons of 
sugar is available in stock.  
The Committee also allowed 1.4 million tons of molasses to be 
exported in a phased manner. It was decided to increase the period 
of sugar retention for Central Excise Duty from 6 months to 12 
months. The Committee directed the Governments of Punjab and Sindh 
to sort out issues of sugar industry pertaining to them with 
Pakistan Sugar Mills Association (PSMA). While doing so the views 
of the representatives of growers and sugar mill owners should be 
given due consideration.
The ECC also reviewed the prices and availability of the essential 
items in the country and noted with satisfaction that the kitchen 
items as a whole decreased by 0.26% during the week ending on Nov 
The Committee was informed that the prices of onion had started 
declining and expected that the trend will continue in view of the 
bulk arrival of green onion and regular Sindh crop due to arrive 
The Committee also noted that SPI was 3.5% during the first five 
months of the current financial year.
The Committee while reviewing the fertilizer situation decided that 
the provincial governments should maintain strict administrative 
control over the distributors of DAP fertilizer so that they do not 
charge the farmers retail price of more than Rs 695 per bag.

3m tons of rice to be exported: Lalika

ISLAMABAD, Nov 26: Pakistan will export three million tons of rice 
during this fiscal year, earning precious foreign exchange, Federal 
Minister for Food and Agriculture, Abdul Sattar Lalika said.
The Minister said on Thursday the country had a bumper rice crop 
this year, and the target of five million of rice has been 
The country had surplus rice this year, while the market was wide 
open after crop failure in some regional countries.
According to the official of Export Promotion Bureau, the traders 
have already registered order for exporting more than two million 
of rice.
The Minister said that the country is likely to reap more than five 
million rice this year. The target for this season is 4.3 million 
Pakistan is expected to earn around eight hundred million dollars 
from the rice export this year. The total earning last year from 
rice export was dollar 550 million.
He said the country had also bumper crop of wheat this year, and at 
present 2.2 million tons of wheat is available to meet the total 
The Minister also denied reports of fertilizer shortage.APP

Increase in wheat support price urged

HYDERABAD, Nov 25: Sindh Secretary for agriculture Dr Badaruddin 
Soomro has said that all-out efforts will be made to achieve the 
wheat production target of 2.6 million metric tons despite the late 
sowing of the crop.
He was presiding over a seminar on wheat crop cultivation at the 
Hyderabad museum auditorium here on Monday.
The seminar was organized by the agriculture extension department 
in collaboration with Sindh agricultural supplies organization 
He pointed out that the problems confronting the farming community 
were being tackled with their assistance and the representative 
bodies of the growers, such as, Sindh Abadgar Board, Sindh Chamber 
of Agriculture and Sugarcane Growers Association.
The growers of Hyderabad and Mirpurkhas expressed their 
reservations about the wheat production targets due to the delay in 
the start of sugarcane crushing season resulting in late sowing of 
wheat crop, untimely heavy rains in lower Sindh, unattractive 
support price of wheat announced by the government and inflated 
prices of inputs and tractors.
The president Sindh Chamber of Agriculture Syed Qamaruzzaman Shah 
pointed out that in other provinces the price of tractors had been 
reduced by Rs 2 lakh per unit while this facility had not been 
extended to Sindh.
He demanded that the requirements of the Sindh growers in respect 
of imported phosphatic fertilizers should be met first because the 
sowing season in Sindh commenced one and a half month earlier than 
the other provinces.
Sindh Abadgar Board's president demanded that the support price of 
wheat should be increased from Rs 240 to Rs 400 per maund.

Task force to tackle millennium bug 
Faraz Hashmi

ISLAMABAD, Nov 24: Deputy Chairman Planning Commission Ahsan Iqbal 
on Tuesday said the government was fully alive to the challenges 
posed by millennium bug and had established a National Task Force 
to cope with the situation.
Speaking at a seminar on "Meeting the Millennium Challenge", 
organized by the Pakistan Tobacco Company in collaboration with the 
Pakistan Computer Bureau he said, "we as a nation are casual in our 
approach to the millennium bug and perhaps are not fully aware of 
the complications this problem may create."
He pointed out that the task force had already started approaching 
the issue with the public and private sector's cooperation.
He reiterated the government's commitment to the information 
technology and said that in the coming month a National Convention 
on IT was being held in which Pakistan's first IT policy would be 
announced by the prime minister.
He hoped that private and public sector in Pakistan would be able 
to pool resources and technological skill to overcome the 
Millennium problem before the deadline.
Other speakers were Chief Executive Pakistan Tobacco Company 
Michael P. Fenn, PTC's Finance Director John Richardson and Chief 
of Computer Bureau Khawaja Ijaz who explained the complexities of 
the problem.
The Millennium problem commonly known as Y2k arose due to the 
programming practices of the yesteryear, in which two digits were 
used to represent a year instead of four i.e., 98 instead of 1998. 
This was done to conserve disk space and memory. This has now 
resulted into the problem which can have disastrous effects not 
only on business but also on major national resources like 
electricity and gas distribution, communications and other areas.
It could impact many core business processes dependent on date. 
Functions like production forecasts, order processing, invoice 
dispatching, supplier payment calculations, distribution and many 
other areas can be affected.
Representatives from both public and private sector organizations 
who addressed the seminar said the technical problem was simple to 
fix, that was currently two digits needed to be expanded to four 
digits. But what have made this issue difficult to handle was the 
billions of references to date that must be identified, corrected 
and tested before the deadline of January 1, 2000. 
Due to simplicity of the problem, it was very easy to underestimate 
both its scale and urgency, especially as this was of no business 
value itself.

Banks to maintain SLR on rupee funds

KARACHI, Nov 24: The State Bank has asked all banks and non-bank 
financial institutions (NBFIs) to maintain cash reserves and 
statutory liquidity requirements on the rupee counterpart of 
special dollar bonds.
This means that the banks using the rupee funds created out of 
conversion of foreign currency deposits into the dollar bonds will 
have to set aside 5 per cent of these funds in cash and 15 per cent 
in government securities with the State Bank. The NBFIs will need 
to place 5 per cent of these funds in cash and 14 per cent in 
A SBP circular issued to all banks and NBFIs on November 21 
informed them that such funds would be treated as the federal 
government deposits. It said the banks and NBFIs would have the 
option to surrender the rupee counterpart of the dollar bonds to 
SBP before one year  if they choose to retain it in the first 
place. It said the rupee counterpart once surrendered cannot be 
reclaimed before encashment of the dollar bonds in Pakistani 
On November 14, the State Bank had allowed the banks and NBFIs to 
use for one year the rupee sale proceeds of the dollar bonds issued 
against frozen foreign currency deposits. The step was taken to 
minimize the liquidity problems facing the banks and NBFIs in the 
wake of a faster conversion of these deposits into the bonds.
The SBP circular reminded the banks and NBFIs that they needed to 
pay an interest on the rupee counterpart of the dollar bonds in 
their use. It said the interest would start accruing from the day 
the rupee counterpart of the dollar bonds was retained by the banks 
or NBFIs and the rate of return would be the simple average of the 
three latest available weighted average yields on the six-monthly T 
Senior bankers say the SBP decision to allow the banks and NBFIs to 
use the rupee counterpart of the dollar bonds for one year has not 
worked well. They say in a bid to take advantage of this facility 
most banks are persuading their customers to get their frozen 
foreign currency deposits converted into the bonds instead of 
rupees but the response of the public is very cool.
These bankers say that the cumulative sale of the dollar bonds 
initially launched on July 22 stood at $54.6 million up to November 
23 adding that less than $20 million worth of bonds were sold after 
November 6 when the government raised their rates of return and 
made them more lucrative by offering some other incentives. 

Banks asked to remove hurdles for loan seekers

ISLAMABAD, Nov 25: Prime Minister Nawaz Sharif on Wednesday 
launched over Rs250 billion loan scheme to promote small and medium 
size enterprizes in the country.

Addressing at the inauguration ceremony of Small and Medium 
Enterprizes Development Authority (SMEDA) at the Convention Centre 
here he asked bank officials to ensure transparency in giving loans 
and keep a vigilant eye on the subordinates to avert any difficulty 
to the people.
The latest "self-employment package" has in fact scaled back an 
earlier decided upper limit on individual loan of Rs40 million to 
Rs10 million in order to benefit maximum applicants. The scheme has 
consolidated the earlier announced scheme within the same Rs250 
billion allocation.
The government has set up SMEDA to provide technical, financial and 
other required assistance to the people seeking to invest in such 
enterprises in both industrial and agricultural fields.
Loans ranging from Rs0.5 million to Rs10 million will be provided 
to the entrepreneurs.
Mr Sharif directed all banks to immediately set up complaint cells 
in their headquarters as well as zonal offices to redress the 
grievances of loan applicants.
He took strong exception to the reports about demands for 
commission by bank officials for approval of loans and said this 
practice should be brought to an end.
Small loans, ranging from Rs10,000 to Rs500,000, would continue to 
be given under the self-employment scheme, he added.
He said, the total bank credit for business in the last 50 years 
amounted to Rs600 billion with big businesses drawing a lion's 
share of Rs550 billion.
Mr Sharif criticized those who were propagating that these small 
loans, given to SES and SMEs, were not adequately secured and would 
become a part of bad-debt.
"The records say to the contrary as the ratio of default by the 
small loan-seekers is less than 10 per cent while the same for big 
loans is more than 40 per cent," the prime minister said.
He called for changing this trend, saying, the small loans schemes 
must be promoted as "it target those 70 per cent majority who want 
to do something but did not have the finances and guarantees 
required for these loans."
The government would devise a plan to grant small loans to 
deserving talented people who were unable to provide adequate 
guarantees, the PM said.
The PM proposed that community and respected people of the locality 
could provide guarantees to loan-seekers of their respective areas.
Mr Sharif said, he would try to hold meetings in the provincial 
capitals to have first hand knowledge of the problems of skilled 
persons. He assured that he would give full consideration to 
proposals floated during the convention.
He called on the people to ensure feasibility of their projects 
before applying for the loans.
The PM called on the banks to reach out deserving people and ensure 
proper disbursement of these loans.
WOMEN: Encouraging skilled women to come forward for national 
development, the prime minister assured that they would be given 
full opportunity to exploit their talents under this scheme.
He directed SMEDA to prepare a special package for skilled women. 
Mr Sharif also urged chambers of commerce to set up cells for 
guidance of the people.
The PM said, he would continue listening the complaints of the 
people over telephone every Saturday from 9:00am to 9:45am.
The prime minister hoped that the upsurge in the stock market, 
improvement in balance of payment position, increase in foreign 
exchange reserves, dollar bond scheme getting popular and a 
propitious climate was bound to encourage investment in the 
Answering newsmen questions the PM said the dollar rate had gone up 
in the kerb market in the past as a result of speculations spread 
in the country under a plot. Mr Sharif said the value of rupee 
against dollar was now gradually increasing and the economic 
conditions were set to improve.
To another question he said he was unaware of any plan for increase 
in power tariff.
Earlier, the Chairman, SMEDA, Khawaja Belal Ahmad, in his brief 
address said offices of the authority would shortly be set up in 
all provinces.
President of Lahore Chamber of Commerce said, board of governors of 
SMEDA should comprise of persons who were aware of the problems of 
small and medium entrepreneurs.PPI/NNI

Stocks lose 9.68 points on weakness of base shares

KARACHI, Nov 27: The strong overnight rally was intercepted as a 
short Friday session saw a good bit of profit-selling by jobbers 
and day traders on selected counters but the underlying sentiment 
remained uppishly inclined.
The selling in part came from weakholders who were not inclined to 
hold long positions owing to weekend considerations, although it 
was well-absorbed at the dips.
"The interruption in the run-up is technically-inspired and there 
are no reasons to believe that the post-IMF bail-out accord rally 
is overdone," analysts said adding "brokers and members of the KSE 
were in a bit haste to leave market to be ready to attend the award 
giving ceremony in honour of the top 25 companies to be chaired by 
the prime minister."
The KSE 100-share index suffered a modest decline of 9.68 points at 
1,035.17 as compared to 1,044.85 a day earlier, reflecting the 
weakness of the PTCL and some other leading base shares.
Owing to KSE's Corporate Excellence Award ceremony the trading in 
the afternoon session was suspended.
Analysts said the accord with the IMF is generally considered a 
good omen for the market as it could lure foreign investors back in 
the rings in a big way, possibly by the next week.
"Already investors and local financial institutions are taking long 
positions in most of the low-priced blue chips to realise capital 
gains," they added.
"No one would like to miss the opportunity to buy Fauji Fertilizer, 
Engro Chemical or Hub-Power as all ensure massive capital gains if 
all goes well with the donor agencies in regard to the bail-out 
package," said a member of the KSE.
Hub-Power again topped the list of most actives, up five paisa at 
Rs 15.20 on 22 million shares, followed by PSO, off Rs 1.05 at Rs 
80.20 on 5 million shares, KESC, easy 10 paisa at Rs 10.25 on 4 
million shares, Fauji Fertilizer, lower 35 paisa at Rs 52.00 on 3 
million shares, and ICI Pakistan, off 15 paisa at Rs 13.10 on 2 
million shares.
Other actively traded shares were led by Sui Southern, easy 15 
paisa on 1.845 million shares, followed by Dewan Salman, unchanged 
on 1.373 million shares, Japan Power, lower 30 paisa on 0.338 
million shares, ICP SEMF, easy 20 paisa on 0.435 million shares, 
Sui Northern, lower 25 paisa on 0.529 million shares, Dhan Fibre, 
up 15 paisa on 0.459 million shares, and MCB, off 25 paisa on 0.326 
million shares.
DIVIDEND: Genertech Pakistan, 17.5 per cent, and Latif Jute, cash 
10 per cent.

Back to the top
Governor's rule
Ardeshir Cowasjee

ON October 30, the corrupt, inefficient political government of 
Sindh, together with its chief minister, was suspended and 
governor's rule imposed on the province.
Almost immediately thereafter, the governor was shorn of his powers 
by two ill-conceived notifications issued by the federal 
government. The governor was expected to captain a team selected by 
the manipulators of Islamabad. His opening batsman, his googly 
bowlers, his wicket-keeper and the umpires would be appointed by 
and be answerable to, them, but he would be expected to win. Not 
Thereafter, sense prevailed, the notifications were withdrawn over 
the weekend of November 14-15, and thus governor's rule effectively 
began the next day. The prime minister is responsible for the waste 
of over two weeks of remedial administration.
Anwar Zahid, the prime minister's adviser, does not share the 
people's view that it is his responsibility to advise the PM at all 
times. He advises only when advice is sought. However, in the 
present case it was he who wisely gave unsolicited advice and 
prevailed upon the PM to undo the wrong and withdraw the ridiculous 
notifications. Whereas it is known who set matters right, it is not 
known who are the tricksters of Islamabad. The governor is still 
burdened with the IGP Sindh and the DIG Karachi, both foisted upon 
him from above.
Back to the second half of 1990 when the then President Ghulam 
Ishaq Khan sacked the first Benazir Bhutto government, and 
installed in Sindh Jam Sadiq Ali to ensure that the PML, by which 
he had been assured a second term in office, would gain the upper 
hand in the province in the forthcoming elections. To assist him as 
the perfect hatchetman, Jam recruited as his secretary the then DC 
Larkana, Imtiaz Shaikh who remained with Jam until his death. 
Muzaffar Shah took over from Jam as chief minister, Sindh, and 
rewarded Imtiaz with a double promotion, jumping him from Grade 18 
to 20. When the second PPP government came in, Imtiaz was suspended 
on various charges of corruption. Having amassed sufficient ill-
gotten gains, he managed to pay his way and remain out of jail.  
Imtiaz managed to get his brother, Maqbool, elected as a PML MPA of 
Sindh. Since governor's rule, Imtiaz has ingratiated himself with 
the fixers of Islamabad and has guaranteed that he can fix the 
formation of another PML government in the province, and the 
election of a Karachi metropolitan PML mayor to boot. The infamous 
Islamabad notifications would have enabled Imtiaz to creep back 
into service in Sindh, ending up as the governor's secretary. Our 
governor, a discerning man, put his foot down and blankly refused 
to have the man in his province.
On Monday, November 16, the governor was badly let down by his 
administration. The speaker of the suspended Sindh Assembly had 
called a session on that day. Instead of allowing the suspended 
members to assemble and let off steam, the administration acted 
hamhandedly and barred all roads leading to the assembly building. 
Had they been allowed to meet, they would have attracted low-key 
headlines describing the heat generated rather than banner 
headlines, blasting the administration's inability to think before 
The administration's hamhandedness caused us citizens a lot of 
inconvenience in that the traffic was jammed for hours all around 
the assembly area. But that was not all. That same evening, on the 

Shahrah-i-Iran, there were also traffic jams and much noise, 
inconveniencing those who live in or have to pass through the 
Clifton area.

* * *

For reasons of propriety, public interest and convenience, public 
parks and gardens falling within the administrative control of the 
KMC and KDA, or any other civic body, are not allowed to be hired 
out and used for private parties.
This ban was imposed a few years ago, to the benefit of the people 
and of the parks. However, many of our politicians have misused 
their clout and arranged for these open spaces to be used to the 
people's detriment. Selfish and uncaring, while they save their 
ill-gotten wealth, the people's money is squandered, and the people 
of the area are deprived for at least three days at a stretch of 
the use of their park. On day one the caterers dig holes in these 
grassy open spaces and put up their shamianas; on day two hundreds 
of people stomp about, chucking chicken bones and other litter 
about; and on day three some cleaning up is done, leaving behind a 
mangled and damaged park.
On November 16, the park in Clifton, administered by the KMC, that 
opens on to Shahrah-i-Iran was handed over to former minister of 
Sindh, Syed Murad Ali Shah, for the marriage party of his son. 
Municipal administrator Syed Arshad Ali, respecting the ban, had 
refused permission. Bypassing him, the ex-minister extracted 
permission from the Sindh secretary of the department of local 
government, Jamil Ahmad Siddiqui. Why did he defy the ban? Chief 
Secretary Salik Nazir Ahmed said he had no knowledge of all this, 
but, under governor's rule, neither he nor the secretary can be 
absolved for this wrong.

* * *

Then, on November 18, thousands of citizens of Karachi, dependent 
on public transport, were stranded. The traffic and general police 
in various districts were halting loaded buses, off-loading 
passengers midway to their destinations, and forcibly taking 
possession of the vehicles for using them the following day to cart 
off rented crowds to welcome the prime minister when he arrived for 
the plaque unveiling ceremony of his highly-priced, unnecessary 
highway project. Dawn reporter counted 61 confiscated vehicles in 
the compound of the DC Malir and over a dozen outside the Malir 
police station. All very disturbing. Why further harass the already 
harassed people so that a rented crowd may be herded to wherever to 
shout 'Nawaz Sharif Zindabad'?
Other reports that day told us that the DCs paid for the taken-over 
vehicles at the rate of Rs.2,000 per day. From where did the DCs 
obtain the funds, and under what rule of service did they act in 
such arbitrary fashion?
That same day, the evening paper, The Star, reported "According to 
a spokesman of the Commissioner's office, the Commissioner of 
Karachi, Mr Shafiq Piracha, has ordered the release of all vehicles 
requisitioned in the last 24 hours. However, none of these vehicles 
have so far been released.....".
That many of the ignorant officers now serving are unaware of what 
happened between 1988 and 1992 is believable though not acceptable. 

The Sindh governments of those days were wont to order the DCs and 
the police of Karachi to hijack all parked vehicles capable of 
carrying a fair amount of passengers to be used to transport rented 
crowds to bolster prime-ministerial arrivals and meetings in the 
city. People who had parked their cars and gone into a restaurant 
to eat, used to come out and find their cars had disappeared. The 
situation was becoming untenable. The official response: "Do what 
you like."
In those days, Sindh was fortunate in having High Court judges 
possessed of two vital physical attributes, and independent minds. 
The High Court was presided over by the then fearless judge, 
Justice Nasir Aslam Zahid. Public-spirited citizen Nazim Haji, then 
chief of the CPLC, wrote to the CJ for help. When this became 
known, Nazim received 'messages' suggesting that it would be wise 
were he to withdraw his plea for help. He ignored them.
Chief Justice Zahid converted Nazim's letter into a petition and 
admitted it for regular hearing. The advocate-general and law 
officers were summoned and asked to cite the provision of law under 
which private vehicles were requisitioned. None could cite any, 
and, as the judge wrote, all they did was request that the hearings 
be postponed.  Justice Zahid wrote his judgment in October 1992. It 
ends : "In the circumstances, this petition is allowed and it is 
declared that the requisitioning of private motor vehicles by the 
provincial government authorities is wholly illegal and without 
lawful authority. Provincial government, its functionaries, 
including police and also magistrates, are restrained form 
requisitioning or procuring private vehicles.
"Constitutional Petition No.D-144/1992 stands disposed of 
accordingly. Copy of this order may be sent to the Home Secretary 
for giving necessary instructions to all the concerned 
functionaries, including Inspector-General of Police, Magistrates, 
Senior Superintendents of Police, Superintendents of Police, and 
Station House officers. "
This judgment is reported in PLD 1993 Karachi 83. It should be 
framed and hung on every wall of every office of every DC, and in 
every police station of the country.
Ignorance of law is no defence. The governor of Sindh would send a 
salutary message were he to sack all concerned with the 
requisitioning of transport and with the desecration of our public 
parks. If leniency must prevail, the culprits should at least be 
transferred to inferior postings. Unless punitive action is taken, 
there can be no cure.

Can the MQM grow up?
Irfan Husain

THE decision to establish military courts in Sindh represents a 
totally unacceptable increment in the repressive powers of the 
As it is, governor's rule in the province was something we accept  
albeit with some reluctance  as a necessary evil, but to dispense 
arbitrary justice with little regard for due process is a negation 
of democracy and a severe erosion of human rights. True, extreme 
situations call for extreme measures. But governor's rule had begun 
to show a salutary effect on the law and order situation, so it is 
difficult to understand why the government found it necessary to 
give the army Draconian powers under article 245 of the 
Indeed, by giving the corps commander virtually unchecked executive 
and judicial powers in Sindh, the governor's role has become 
ambiguous at best, and redundant at worst. As they report to, and 
derive their authority from, different bosses, a conflict of 
perception and interest can easily develop. In fact, by 
unnecessarily invoking article 245, Mr Nawaz Sharif has lost much 
of the goodwill he had earned by imposing governor's rule in the 
first place. Human rights organizations and activists in Pakistan 
and abroad fear that these proposed military tribunals will 
sentence many innocent people on the basis of evidence fabricated 
by the police, or confessions extorted under torture.
Perhaps the reason why the government has sought to hand over 
judicial powers to the army is the sorry performance of the civil 
judiciary. Over the years, our courts have acquired an unenviable 
reputation for delays and a lack of objectivity. In this, they are 
no different from the other institutions in Pakistan. However, the 
fact is that time after time, they have been inclined to release 
alleged criminals accused of the most vicious crimes on bail.
In a city like Karachi that is bleeding to death, releasing 
terrorists accused of violent crimes does not help matters. Indeed, 
Nawaz Sharif himself released on parole large numbers of alleged 
terrorists as part of the deal he cut with the MQM to install a PML 
government in Sindh. Given the supine nature of the ex-chief 
minister, and the peculiar nature of the power-sharing arrangement 
between the two coalition partners, it came as no surprise that the 
law and order situation deteriorated progressively.
Today, the most vocal critics of governor's rule are the leaders of 
the MQM because they are the biggest losers in the present 
dispensation. But in a sense, they have only themselves to blame. 
As they battled for turf with their Haqiqi offshoot, and bodies of 
the combatants and innocent bystanders littered the streets, people 
in and out of Karachi were sickened and appalled by the carnage. 
Repeated "days of mourning", a euphemism for physically enforced 
strikes, cost the economy billions. By not reining in their armed 
wing, the MQM finally forced even Nawaz Sharif to take a decisive 
But having finally moved, it is important to maintain a balance and 
not appear to be on a witch-hunt. Currently, only Muttahida 
activists seem to be targeted, while the Haqiqis are off the hook. 
The apparent manhandling of the MQM MPA, Shoaib Bokhari, is 
uncalled for and unnecessary.
It is clear that the present authoritarian dispensation is not a 
panacea for Karachi's many ills. At best it will buy us some 
breathing space; at worst it will further exacerbate the city's 
ethnic tensions. But without accompanying political and economic 

action, strong-arm methods on their own will provide no long-term 
solutions. Urban Sindh's complex ethnic politics cannot be ignored 
in the search for lasting peace. Locking up MQM activists may 
silence the guns briefly, but for the present uneasy ceasefire to 
be converted into a long-term settlement, the underlying causes for 
the unrest have to be addressed.
Unfortunately, various agreements between the federal and the 
provincial governments and the MQM over the last decade have all 
floundered due to political expediency on both sides. Successive 
administrations have dragged their feet on the implementation of 
accords, while the MQM has insisted on the juicy portfolios as a 
price for keeping quiet on other, thornier issues. And while in 
power, the MQM has simultaneously tried to play the part of the 
opposition in order to appease its constituency which has been 
bypassed time after time in this cynical horse-trading.
Another problem has been the inability and unwillingness of the MQM 
to distance itself from its armed wing. As a consequence, it is 
difficult to treat this ethnic party as another mainstream 
political organization. The mistrust and apprehension the MQM 
arouses among foes and allies alike has created a gap that cannot 
be bridged until Altaf Hussain and his lieutenants renounce 
violence as a political tool. If they want to be treated as normal 
politicians, they must start acting the part.
While talking to senior members of the Muttahida party, it is 
impossible to convince them that since the inception of their 
movement, they have caused more harm than good to the Mohajir 
community. By isolating them through the politics of violence, the 
MQM has effectively made them the object of suspicion among the 
various power centres as well as ordinary people across the 
Indeed, the problem while talking to ideologues of nay stripe is 
that they are so convinced of their fixed position that any 
conversation soon degenerates into a dialogue of the deaf. The MQM 
is no exception. Its leaders insist that it is not a violent 
organization, and it harbours no terrorists in its ranks, contrary 
to our experience. According to them, all the violence taking place 
in Karachi is caused by the Haqiqis and "the agencies." And so on. 
They refuse to concede that their perceptions and tactics may be at 
fault, and they need to review their policies.
One huge obstacle in their approach is the peculiar position Altaf 
Hussain has acquired in their party. While politicians in other 
parties may occasionally diverge from their leaders' views in 
private and in public, the MQM does not permit any dissent in its 
ranks. This had led to a situation where a leader who has chosen to 
sit thousands of miles away and is totally out of touch calls the 
shots in all matters affecting the party and its supporters.
So until the local leadership of the MQM can assert itself and 
distance the party from the killers and racketeers who shelter 
under its umbrella, it is difficult to see how it can be treated as 
a mature, responsible group.

Pakistan beat Zimbabwe to clinch one-day series 2-1
Farhana Ayaz

RAWALPINDI, Nov 24: A dazzling knock of 132 by Ijaz Ahmed helped 
Pakistan pull off a walloping 111 runs victory over Zimbabwe  here 
in the third and final one-day game at Rawalpindi Cricket Stadium 
on Tuesday.
By virtue of the win, Pakistan also won the three-match series 2-1. 
Pakistan clinched the opener at Gujranwala by four wickets while 
the tourists battled back with six wicket triumph at Shiekhupura.
Having won the toss the Zimbabwe skipper may have had the 
brittlePakistan batting in mind when he put the hosts into bat on a 
strip ideal for stroke-play.
A buoyant 132 by Iiaz Ahmed off 102 balls studded with nine 
boundaries and four towering sixes tookPakistan to a match-winning 
total of 302 for 6 in the allotted 50 overs. Ijaz secured the man-
of-the-match award of Rs 20,000 and a medal for his sparkling 
Pakistan innings got off to a flying start when the left-handed 
pair of skipper Aamir Sohail and Saeed Anwar put on 77 runs for the 
first wicket. Anwar was especially in dashing nick and clobbered 
almost all the bowlers. Pacer Niel Johnson came under fire giving 
away 14 and 9 runs in his first two overs before Campbell replaced 
him with Heath Streak. Going at a healthy rate of nearly 8 runs an 
over Pakistan had posted 40 in first five overs. Streak succeeded 
in bringing down the high run rate as Pakistan added 13 runs in 
next five overs.
Anwar continued to delight the enthusiastic crowd with his 
exquisite stroke-play. He lifted Brandes for a six in the 13th over 
to roll his score to 44. Sohail who wasn't looking agile, failed to 
develop anything taller than one run after being dropped at 19 off 
Brandes when Johnson failed to hold on to a straight forward catch 
at mid-on. Sohail going for a drive against Andrew Whittal was 
clean bowled at 20 (47 balls) in the 15th over with the total at 
Anwar struck six fours and a six to complete his 27th half century 
in the one-day internationals. It came off 39 balls spanning 57 
Anwar and Ijaz Ahmed posted the 100 in 18.1 overs. Pakistan lost 
its second wicket at the total of 110 when Anwar, in fluent form 
and looking set for a big score, was run out. Anwar playing towards 
backward point was sent back by Ijaz but a dashing pick-up and 
throw-in by Gavin Rennie into the gloves of keeper did the damage. 
Anwar made 73 off 63 balls in 86 minutes.
Sohail introduced himself to the bowling attack in order to check 
the slow over rate. Sohail clean bowled Andy and then also trapped 
Zimbabwe's last wicket at the total 191 in 37.2 overs.
Waqar who made his comeback to international cricket after a lay 
off of nearly six months looked in fine form, he grabbed 2 for 49, 
Saqlain had 3 for 27, Akram, Aaqib took 1 each while Sohail had 2 
for 26.

Pakistan breeze into final of World Cup blind cricket

LAHORE, Nov 26: Muhammad Ashraf struck magnificent unbeaten 166 
runs as Pakistan beat Australia by eight runs to breeze into final 
of inaugural World Cup Cricket for Blind at New Delhi on Thursday.

According to facsimile message received here from India, Pakistan 
elected to bat after winning the toss,piled up 342 for the loss of 
six wickets in the allotted 40 overs and restricted Australia to 
334 for five.
Apart from "Man- of- the- Match" Ashraf's master and match winning 
knock,Masood Jan (80) and Aamir Ashraf (42) build the innings and 
steered their side to victory.
With this win Pakistan set a final clash with South Africa on Nov 
28, who thrashed India by ten wickets.
India made 335 for seven in the allotted 40 overs but South Africa 
answered with 336 without loss with two balls to go.South African 
openers set a new world record for opening stand.APP

Davis Cup: Swedish coach to train Pakistan squad
Sports Reporter

ISLAMABAD, Nov 22: A Swedish tennis coach will be arriving here in 
January to supervise Pakistan's next Davis Cup campaign against 
Uzbekistan, it was disclosed here on Sunday.
Mr. Anwar Saifullah, the President of Pakistan Tennis Federation, 
said that top Pakistani players would be sent to India to compete 
in the international circuit for preparing them for the coming 
Pakistan rolled over Thailand in the final of Davis Cup Asia-
Oceania Group-II at Lahore to advance into the group-I of Asia 
Oceania zone.
Anwar Saifullah also awarded a special cash prize of Rs 24,000 each 
to the Pakistan Davis Cup team that won the final against the 
The PTF president, while talking to reporters, also disclosed that 
the development work on the PTF Tennis Complex would start as soon 
as the final lease agreement between PTF and CDA was signed. "They 
have already allotted PTF 9.2 acres of land but in order to start 
the work, it requires proper legal and technical coverage," the PTF 
chief said, adding that private sponsors have been found to develop 
the complex.
He said that it should not take more than three years to develop 
the complex which would include all the modern facilities. It was 
stated that some Rs 100 to 150 million will be spent to develop the 
The PTF chief also informed the Press that he has decided to 
 appoint an office secretary to properly organise the federation 
working. The office secretary whose name he did not disclose, would 
be a retired deputy secretary, Mr Anwar Saifullah said.

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