------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 31 October 1998 Issue : 04/43 -------------------------------------------------------------------
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CONTENTS ===================================================================
NATIONAL NEWS + Sindh put under governor's rule + Massive hunt for MQM men as deadline ends + Nawaz and Clinton talk on Dec 2 + Pakistan, Indian officials talks next week + Pakistan, IMF close to signing $5bn bailout package + Pakistan may get F-16s money from NZ + Govt repeals '76 Contempt of Court Act + Pakistan & S. Arabia to enhance cooperation + Sartaj's statement: US calls for positive response on CTBT + Pakistan not exporting terrorism: PM --------------------------------- BUSINESS & ECONOMY + 'Pakistan industry needs to know implications' + Oil shortage feared as stocks deplete + Rs250bn for small, medium enterprises + Furnace oil sales plunge + Poor management of resources impedes growth: IBRD + 'Anti-dumping issue be raised at govt level' + US sanctions not to affect trade: UK official + Delegation of powers to CBR + Oct tax collection estimated at Rs18bn + Dollar sheds 70 paisa + Stocks maintain optimistic outlook --------------------------------------- EDITORIALS & FEATURES + Metropolitan police Ardeshir Cowasjee + Chinese water torture Irfan Husain ----------- SPORTS + Pakistan lose first series to Australia in 39 years + World's toughest hockey tournament begins today

Sindh put under governor's rule
Ihtasham ul Haque
ISLAMABAD, Oct 30: The federal government has imposed governor's 
rule in Sindh under emergency provisions of article 232 (c) of 
clause (2) of the Constitution.
The PTV broke the news in its 9 o'clock bulletin on Friday night by 
showing a recorded shot of the prime minister making the 
Using the same emergency powers under article 232 the federal 
government has also suspended articles 130 to 136 of the 
Constitution in relation to Sindh as a result of which the 
provincial government, including the cabinet and the chief 
minister, have ceased to exist.
Constitutional experts said the federal government's order did not 
affect the functioning of the provincial assembly which in their 
opinion would continue to exist. However, it is not clear whether 
or not the provincial assembly session could be called in the 
present circumstances.
The prime minister while making the announcement declared that 
governor's rule had been imposed and the government dismissed with 
immediate effect in Sindh. "Now decisive action has been started in 
Karachi against terrorists and criminals who have been involved in 
the killing of innocent citizens," he said.
The prime minister recalled that he had told the MQM leadership 
that the government had ample proof of involvement of their people 
in the murder of Hakim Said and that he had asked the party to hand 
over to the government the perpetrators of this heinous crime 
within three days. "When they failed to do so, the government 
decided to impose governor's rule and dismiss the government." He 
vowed to restore peace in Karachi without caring for any political 
"There are no two opinions about who killed Hakim Said and we have 
decided to take on the terrorists after having collected all the 
required information about them." He said his government haddecided 
not to compromise on the issue of law and order in Karachi. 
Mr Sharif said the people of the city had been held hostage by the 
The cabinet division later issued an order under Article 232 of the 
Constitution dealing with the Proclamation of Emergency which said: 
"The federal government is pleased to assume on behalf of the 
federation all the functions and powers of the government of that 
province and all powers vested in or exercisable by, all bodies or 
authorities in the province other than the provincial assembly."
Sources said that the minister for education, Ghous Ali Shah, had 
been appointed advisor to the governor.
The cabinet members were also shown a video film relating to the 
confession of the main suspect in the murder of Hakim Said.

Massive hunt for MQM men as deadline ends
Sarfaraz Ahmed

KARACHI, Oct 30: With the expiry of the 72-hour deadline given by 
Prime Minister Nawaz Sharif to Muttahida Qaumi Movement, the police 
have been given a free hand to not only arrest all those involved 
in Hakim Said's murder but also to launch a massive hunt for 
political activists wanted in various other cases.
According to official sources, the federal government has evolved a 
two-pronged strategy for an effective and meaningful resolution of 
objectives behind the imposition of governor's rule in the 
The federal government has also decided to boost the rangers' 
strength in the province as the interior ministry has been asked to 
send more contingents of paramilitary forces to Karachi to meet law 
and order challenges.
Under the strategy, the action plan will target at least 10,000 
workers, activists and sympathisers of Muttahida Qaumi Movement, 
including over 7,000 of those who are believed to have been playing an
active role both during party's hibernation period and its 
presence in the government.
As many as 10 MQM legislators, including two senators, Aftab Sheikh 
and Nasreen Jalil; three MNAs, Kunwar Khalid Younus, Prof A. K. 
Shams and Hasan Mussanna Alvi; and five MPAs, Dr Farooq Sattar, Dr 
Saghir Ansari, Haroon Siddiqui, Yousuf Khan and Wasim Akhtar, are 
on parole.
According to reports, which were not officially confirmed, as many 
as 100 Muttahida workers were apprehended from all over the city 
during night-long raids. Most of the arrests were made in the 
Muttahida-dominated areas such as Korangi, Liaquatabad, Nazimabad, 
Federal 'B' Area and Orangi.
MQM sources alleged that the arrested persons had been shifted to 
unknown destinations, and were being subjected to torture.

Nawaz and Clinton talk on Dec 2

ISLAMABAD, Oct 30: Prime Minister Muhammad Nawaz Sharif and US 
President Bill Clinton are expected to hold talks on a wide range 
of issues of bilateral interest in Washington on Dec 2, officials 
said here on Friday.
A senior Foreign Ministry official confirmed that the Premier will 
leave for the United States on Nov 30 for a four-day visit.

President Bill Clinton has invited the Pakistani Prime Minister for 
the official visit during which the two sides are expected to take 
up a host of issues including the security situation in South Asia 
with particular reference to Kashmir dispute, economic sanctions 
and CTBT.
Washington has been urging Pakistan and India to sign the 
Comprehensive Test Ban Treaty following the two South Asian 
countries' nuclear explosions in May last.
While Islamabad has called for removing the "climate of coercion" 
and economic sanctions, stressing that it was New Delhi which 
triggered the nuclear explosions and Pakistan acted out of 
necessity and compulsion.
The two leaders met last month during the UN General Assembly 
session at New York.APP

Pakistan, Indian officials talks next week

NEW DELHI, Oct 28: Indian Defence Minister George Fernandes said on 
Wednesday that the defence secretaries of Pakistan and India would 
meet next week in New Delhi to discuss security, the Press Trust of 
India (PTI) reported.
"Defence secretaries of India and Pakistan will meet next week in 
New Delhi to discuss mutual problems with regard to security..." 
PTI said, quoting comments made by Fernandes at a news conference 
in Bhopal.
It said the discussions would also cover other issues, including 
commerce, but gave no dates for the meeting.
Fernandes said all problems with Pakistan could only be resolved 
through negotiations and the "recent firing by Pakistani troops in 
the Siachen glacier" should not be construed as a hurdle in the 
talks between the two countries.
Officials in Islamabad had on Tuesday rejected as "rubbish" a 
report that India had thwarted a Pakistani attack to capture a post 
in the Siachen glacier.
The Indian defence ministry had said that Indian troops beat back 
an attempt by Pakistan to take the post on Monday night, killing 
five Pakistani soldiers.
Fernandes said that talks between the two countries must continue 
despite the "skirmishes". He noted that even during the Vietnam 
war, US and North Vietnamese officials used to meet in Paris every 
Wednesday for talks. Reuters

Pakistan, IMF close to signing $5bn bailout package
Bureau Report

ISLAMABAD, Oct 29: Pakistan and the IMF are close to signing a 
broad agreement for a $5 billion bailout package which mainly 
includes over $3 billion debt relief by three multilateral 
In return Pakistan has agreed to adjust the exchange rate of its 
currency, stop harassing the IPPs and expedite the privatization of 
Official sources told Dawn here on Thursday that the government 
would be given an immediate debt relief of over $3 billion to "help 
avoid default" which was otherwise imminent by next month.
World Bank, IMF and Asian Development Bank (ADB) have decided not 
to insist on having their loans serviced on due dates. They said 
Pakistan had been passing through a critical period of its economic 
history, and therefore, needed to be supported.
They have also agreed "not" to ask Pakistan to meet an immediate 
debt servicing obligation of $100 million (of WB $61 million and 
ADB $39m). This amount will now be included in the debt relief 
package, which has separately been prepared and agreed between the 
two sides.
Sources said that the debt relief had also been offered on 
bilateral level and the government had been told that the grace 
period of their loans would be extended further in an attempt to 
"help it to overcome its problems".
However, these favours have not been showered without 
Sources said Pakistan had assured the international lenders to make 
necessary "adjustments" in the exchange rate of the rupee. Timing 
of these adjustments had been left to the government. "We have 
achieved a complete understanding on the current unified inter-bank 
market rate", said a source in a local multilateral agency. He also 
said that the government had been allowed to purchase dollar from 
the open market and that, "we have done so to favour your 
government to improve its reserve position".
Sources said that the government had also assured the donors that 
the representatives of the IPPs would no more be harassed and that 
the matter would be settled in courts.
Now the matter is expected to be resolved by a committee 
constituted recently by the prime minister.
"But we have been advised that the best course would be to refer 
the IPPs issue to an international tribunal or the International 
Chamber of Commerce", said an official. He disclosed that the 
issues of alleged corruption by the IPPs and the tariffs had been 
effectively separated.
Sources said that now WAPDA would file every year a review 
application for the increase in the tariffs to National Electric 
Power Regulatory Authority (NEPRA) which would have the first such 
reference of 10 per cent upward revision in tariffs in early 
December. Moreover, the government has assured the lenders that no 
unilateral decision would be taken to increase or reduce the power 
rates and, that it would be totally de-politicised.
The government has also assured that it would not unilaterally 
cancel power agreements with HUBCO and KAPCO as was earlier 
announced by chairman Ehtesab bureau Senator Saifur Rehman.
"Pakistan had a bad press specially outside the country and the 
erosion of the credibility when it decided to take on the IPPs", 
said another official adding that now the differences would be 
sorted out through negotiations.
Sources said that the government had accepted the demand of the 
World Bank and the IMF that the Rs10 to 12 billion subsidy on 
electricity charges, announced by the PM recently, would be 


Pakistan may get F-16s money from NZ

WASHINGTON, Oct 28: Pakistan will get the lease payments for the F-
16 aircraft directly from New Zealand under the terms of the offer 
made by US authorities to dispose of the eight-year-old Pakistani 
Informed sources revealed that the US had offered a lease-to- 
purchase deal to New Zealand for the 28 Pakistani planes and the 
money could come directly to Islamabad in instalments.
So far, however, the exact price has not been revealed and the 
detailed terms of how the payment should be made have not been 
worked out as yet.
But experts say such an arrangement would create a major problem 
for Pakistan as it expects the US government to repay the money in 
full, so that Islamabad could use it to ease some of the pressure 
on its balance of payments.
Moreover the thorny issue of how and whether any interest would be 
payable to Pakistan on the total amount is also to be resolved and 
any payments by New Zealand on instalment basis would definitely 
not cover this aspect.
Experts said it would be a complicated deal as New Zealand would 
lease the aircraft from the US, as technically the US owns them, 
while the payments would go to Pakistan, as cost of their 
manufacture has been paid by Pakistan.
They said it would be "the first of its kind" deal ever made by the 
Pentagon to act as an agent for sale of goods belonging to another 
New Zealand has reportedly agreed to buy the aircraft after its 
technicians inspected them and found them to be in perfect 
Confirmation that New Zealand experts had approved the quality and 
condition of the planes came in a statement made by a senior 
diplomat in Washington.

Govt repeals '76 Contempt of Court Act
Bureau Report

ISLAMABAD, Oct 27: The government on Tuesday repealed the existing 
Contempt of Court Act 1976, and promulgated a comprehensive 
ordinance, widening the scope of fair comment on the judgments of 
The new law, coming into force forthwith, have introduced 
substantial changes in the existing contempt laws and tried to 
modernize it. The new law has provided that truth shall be a valid 
defence in case of contempt of court.
The new law has been drafted keeping in view the modern trends 
about contempt law in the civilised world, the federal law 
secretary Chaudhry Mohammed Irshad told Dawn.
"There was need for such a law which could truly protect the 
dignity of the courts and also the rights of the citizens provided 
in the constitution," he added.
The new law has been divided into three categories: criminal, 
judicial and civil contempt. It has been provided that comments on 
the judgments of court will not constitute contempt of court, 
provided the language is temperate.

The new law has empowered the courts to prohibit the publication of 
any proceeding through a written order. In the previous law there 
was no provision for the prohibition of any publication by the 
court but verbal orders were being passed by the judges. The new 
law has made it mandatory for the judges to write the order in this 
The new law has allowed the publication of substantially accurate 
account of what has transpired in a court. Personalised criticism 
of judge or judges will constitute judicial contempt.
Judicial contempt proceeding initiated by a judge, relating to 
judge will not be heard by the judge himself and will have to be 
referred to the chief justice who may hear the same personally or 
refer it to some other judge. In case the proceedings are against 
the chief justice it will be referred to the senior most judge 
available for disposal.
The order, passed by a superior court in case of contempt, will be 
appealable in the following manner,
1) In the case of order passed by a single judge of a high court, 
an inter-court appeal shall lie to a bench of two or more judges.
ii) In a case in which the original order has been passed by a 
division or larger bench of a high court, an appeal as a right 
shall lie to the supreme court; and
iii) In the case of an original order passed by a bench of the 
supreme court, an intra-court appeal shall lie to a larger bench of 
the court within 30 days. The appellate court might suspend the 
impugned order pending disposal of the appeal.
The punishment for the contempt has not been changed. The ordinance 
provides that any person who commits contempt of court shall be 
punished with imprisonment which may extend to six months simple 
imprisonment, or with fine which may extend to Rs100,000, or with 
A person accused of having committed contempt of court may, if at 
any stage submits an apology and the court, if satisfied that it is 
bona fide may discharge him or remit his sentence.
Pakistan & S. Arabia to enhance cooperation
Ashraf Mumtaz

LAHORE, Oct 27: Pakistan and Saudi Arabia on Tuesday expressed 
their satisfaction over the steady growth of mutual cooperation in 
various fields and agreed to set up a joint business council to 
promote cooperation in trade and investment.
To be named joint Pakistan-Saudi business council, the new body 
would work to bring the private sectors of the two countries 
This was stated in a four-page joint communique, issued here on the 
conclusion of the three-day official visit of the Saudi crown 
prince, Abdullah bin Abdul Aziz al-Saud to Pakistan.
The two countries reiterated their determination to intensify it 
further in the fields of economy and technology "commensurate with 
the level and quality of bilateral political relations".
They agreed that the mechanism provided by the joint ministerial 
commission (JMC) should be activated to enlarge and develop 
bilateral trade and investment. They also agreed that the private 
sector of the two countries should be encouraged towards closer 
interaction with a view to utilizing the potential for economic 
cooperation in trade and investment.
The two sides also expressed their common and continued interest 
regarding the issues that concern their security.
Saudi Arabia reaffirmed its strong interest in the economic well-
being and stability of Pakistan. Islamabad expressed its gratitude 
for the continuing understanding and support from the kingdom.
The two countries also agreed that the establishment of peace and 
security in South Asia required non-use of force and peaceful 
settlement of disputes, specially the Kashmir issue in accordance 
with the UN resolutions. They reiterated their support to the 
inalienable right of self-determination of the Kashmiris.
The two sides reaffirmed their full support for early restoration 
of durable peace in Afghanistan on the basis of the preservation of 
its independence, sovereignty and territorial integrity.
They reiterated their resolve to supplement all efforts, specially 
under the auspices of the UN and the OIC, for the purpose.
Expressing concern over the tension between Afghanistan and Iran, 
they hoped that the two countries would take urgent measures to 
defuse it.
They welcomed the latest Palestinian-Israeli accord and hoped that 
it would constitute a step towards restoring the peace process to 
its proper track. The two countries also praised efforts of the US 
President Clinton in the finalization of the agreement.
The two sides expressed the hope that the international community 
would play an effective role to ensure Israel's adherence to its 
commitments under various peace accords.
They affirmed the need to achieve a just, lasting and comprehensive 
peace based on the principle of land-for-peace, and the relevant UN 
Sartaj's statement: US calls for positive response on CTBT

WASHINGTON, Oct 26: The State Department on Monday welcomed Foreign 
Minister Sartaj Aziz's statement that Pakistan had no objection to 
signing the CTBT, FMCT and the NPT.
But a senior official told Dawn: "Though these are positive 
remarks, we want to see Pakistan's signatures on the CTBT and Mr 
Aziz was just elaborating what Prime Minister Nawaz Sharif had 
stated in his UN speech."
The foreign minister's comments came amid strong speculation here 
that Pakistan was ready to sign the CTBT during the official visit 
to Washington by PM Nawaz Sharif.
"They are preparing the grounds for a possible signing ceremony by 
Pakistani Prime Minister, which will be presented to the world as 
another feather in the cap of President Clinton, just like the 

Middle East peace show held recently," an observer said.
The US President is concentrating on countering the impeachment 
probe by achieving foreign policy successes which could keep his 
ratings of support high.
The State Department official was asked whether the statement by 
the foreign minister was enough for President Clinton to use his 
waiver authority and lift all or some of the sanctions against 
He said: "We don't make decisions on the basis of newspaper 
interviews. We want to see something done formally. We want to see 
the signatures, not hear statements."

Pakistan not exporting terrorism: PM    

ISLAMABAD, Oct 26: Prime Minister Nawaz Sharif said on Monday that 
there were no terrorists in Pakistan as such who operated from here 
against any other country.
On the contrary, Pakistan itself had been a victim of terrorism, Mr 
Sharif said in Lahore during an interview on regional, bilateral 
and international issues with Saudi reporters who were accompanying 
visiting Saudi crown prince.
The prime minister said that fighting terrorism and eradicating it 
have been a firm resolve of the government and it is ready to play 
that role wherever terrorism takes place.
Replying to questions about neighboring Afghanistan, Sharif said it 
is very unfortunate that whatever happens in Afghanistan affects 
Pakistan as well and there is no other neighborly country so 
adversely affected by events taking place in another country than 
As Afghanistan is a land-locked country, the prime minister said, 
its people use routes through Pakistan while going in and out, but 
he assured that Pakistan would not allow export of terrorism 
through this conduit and stands for the elimination of any 
terrorism sprouting from the soil of Afghanistan.
As Pakistan is directly affected, he said: "We want stability in 
Afghanistan because it is its instability which affects us."
About the recent trip and talks of UN envoy Lakhdar Brahimi with 
Pakistani and Afghan leaders, the prime minister said the talks 
have been very useful and constructive and "it is a very positive 
Pakistan has been playing a positive role in Afghanistan for the 
last many, many years, the prime minister said.
Asked about the impact of US sanctions on Pakistan's economy, he 
said that the US sanctions have been unjust and unfair because 
Pakistan had been forced to go for nuclear detonation as a response 
to the Indian nuclear blasts.
Pakistan is not to be blamed for this but its security concern had 
forced Pakistan to do it, he said, adding that India wanted to 
teach Pakistan a lesson and wanted to bring Pakistan to its knees.
He said the sanctions against Pakistan would have to be removed. He 
said he brought home Pakistan's viewpoint to US President Bill 
Clinton during his meeting with him in Washington.

He hoped there is some progress going on in that direction and the 
US Congress has approved waiver to the president to lift the 
sanctions. NNI

Pakistan seeks report on stranded seamen
Hasan Akhtar

ISLAMABAD Oct 29: Pakistan Foreign Ministry has instructed its high 
commissioner in Dhaka to send a complete report as early as 
possible about 31 Pakistani seamen who have been forced to stay 
aboard an arrested freighter at Chittagong port since May last.
The foreign office spokesman, Tariq Altaf, told Dawn here on 
Thursday that the foreign ministry had only recently come to know 
through a report sent to the ministry by human rights commission, 
about the state of affairs of a bulk carrier, MV Delta Star, owned 
by a Karachi-based company, Tristar Shipping Lines, and pathetic 
condition of its crew.
The spokesman said that the FO had taken notice of the deprivations 
(as reported by Dawn on Wednesday) of the crew who had been 
suffering for the last six months due to lack of fresh drinking 
water, food and fuel.
The troubles of the poor crew started as a result of an alleged 
non-payment of their dues by the shipping company since 1997 and 
subsequently because of a series of legal suits involving the 
owners of the ship, the mortgagee bank, Allied Bank of Pakistan, 
and various agencies providing services to the stranded ship off 
the Bangladesh port of Chittagong.
The spokesman said that the high commissioner had also been advised 
to see what possible steps were needed to alleviate the human 
sufferings of the crew.

'Pakistan industry needs to know implications'

ISLAMABAD, Oct 28: The United Nations Conference on Trade & 
Development (UNCTAD) has advised the government of Pakistan to 
create in the trade and industry an understanding of Uruguay Round 
Agreements (URA) rules, regulations and their implications.
The awareness in the Pakistan industry of various clauses of the 
URA is very slight, a recent UNCTAD report on the situation in 
Pakistan in the context of WTO agreements pointed out. It 
identified a number of areas in which Pakistan's industry needed 
technical assistance to become competitive and cut back the trade 
The UNCTAD report also mentions the Pakistan government's views on 
post-URA. "The developing countries," it purportedly contended, 
"were forced to accept globalization and the discipline of free 
markets. This brought economic havoc to many Third World economies 
simply because whatever little industrialization had taken place 
was seriously threatened."

Pakistan, Islamabad also informed the UNCTAD, was facing economic 
recession, lower growth rates, shrinking exports, higher trade 
deficits and balance of payments problems. It became indebted to 
the international agencies, which led to devaluation; debt crisis 
looms large on the horizon, GoP complained.
It was also GoP's view, according to the report, that the 
implications of URA were not understood well by the trade and 
industry in Pakistan. The industry might not be able to compete 
with the more efficient foreign companies in the industrial world, 
particularly, where local companies lacked the technology 
The GoP, therefore, proposed that a group of developing countries 
came together to work out an alternate proposal reflecting their 

Oil shortage feared as stocks deplete
Haris Anwar

KARACHI, Oct 28: The country is threatened with oil shortage as oil 
companies have depleted their stocks and the peak seasonal 
consumption starts next month, industry sources said here on 
"We have warned the government that peak oil consumption period 
(Nov-March) is on the verge, but our oil reserves are at precarious 
levels," A high official of state-run oil marketing company told 
"I am telling you we've hardly any reserves to meet this increased 
demand," he said on the condition of anonymity.
He said the company was facing an extreme difficulty in arranging 
finances. "The banks are reluctant to open our LCs and we are only 
importing to fulfil day to day demand," official said while taking 
a sigh of relief as he was informed on telephone that 5.3 million 
dollars were arranged for an oil tanker scheduled to berth on 30th.
The oil consumption during Nov-March usually goes up with the 
increased heating oil from general consumers and thermal power 
sector due to less hydel generation in the winter.
WAPDA and KESC, too, have run down on their reserves as PSO is 
selling furnace oil only on cash basis." Only IPPs are maintaining 
60 days reserves as it's mandatory for them", sources said.
Pakistan State OIL (PSO), which meets about 77 per cent POL demand 
of the country, used to maintain 14-15 days reserves to meet 1.4-
1.5 million tons POL demand for this period. 
Banking sector sources said government had recently rescheduled 
$300 million Citibank-led syndicated facility for PSO, which it was 
unable to pay on due date.
"We were not engaging in oil financing on the instruction of SBP. 
But now we have started it again", said a chief of a state-run 
Pakistan imported $ 298 million POL products in the first quarter 
of 1998-99 and $ 1.6 billion in fiscal 1997-98.

Rs250bn for small, medium enterprises
Ihtashamul Haq

ISLAMABAD, Oct 24: The government has allocated Rs250 billion to 
help set-up small and medium enterprises during the next three 
years, prime minister Nawaz Sharif announced here on Saturday.
"During the last 50 years only Rs150 billion had been spent on the 
establishment of small and medium industries but now we have 
allocated an unprecedented amount of Rs250 billion to be disbursed 
in three years period for this purpose", he added.
He told the participants of the one-day Convention on "Prime 
Minister's Self employment Scheme" here that Rs10 billion had also 
been separately allocated to give small scale loans to unemployed 
Giving details, the prime minister pointed out that Small and 
Medium Enterprise Development Authority (SMEDA) has been set-up to 
ensure quick and timely loans to small investors.
"The SMEDA has been asked to provide Rs5 lakh to Rs50 million to 
the investors of the small and medium enterprises".
He called upon the loans seekers to pay back their loans in time so 
that the Nationalized Commercial Banks (NCBs) and the Development 
Financial Institutions (DFIs) could continue offering small scale 
loans to the new investors.
All the Presidents of the NBP, HBL, MCB, UBL, ABL and the Managing 
Director of the SBFC were present in the convention and answered 
various questions asked by the participants drawn from all over 
Pakistan. Most of them were those who sought loans to set up their 
It was decided that the banks and the DFI would give loans within 
15 days or would inform the loan seeker about the rejection of his 
The prime minister said that loan up to Rs200,000 could be obtained 
on a personal guarantee. "Any account holder of the NCBs could be 
eligible to become a guarantor for this loan", he said.
Furnace oil sales plunge
Haris Anwar

KARACHI, Oct 29: Furnace oil sales have registered a sharp decline 
of over 25 per cent during the first quarter of fiscal 1998-99.
During July-Sept 1998-99, the furnace oil sale volumes have dropped 
from 1.873 million tons to 1.402 million tons compared to first 
three months of 1997-98.
Oil industry sources cite general slowdown in the economy, 
depletion of Wapda and KESC oil reserves and rising use of gas and 
hydel sources instead of oil by the power generating companies as 
the major reasons for this plunge.
The industrial consumption of furnace oil during first quarter is 
almost stagnant, up only 0.27 per cent. However, it has dropped by 
over 27 per cent in September compared to last year. "It seems that 
crunch has started to hit the industry with lagged effects", said 
an official of an oil marketing company.
He said reduced sales to power sector, which consumes 65-70 per 
cent of total furnace oil, is the main cause for this drop. " Wapda 
which used to maintain about 52 per cent stocks of its total 
storage capacity is now maintaining only 2-3 per cent stocks", he 
Wapda and KESC are in deep trouble due to their huge deficits and 
are unable to pay for their oil purchases from Pakistan State Oil. 
This has forced them to run down on their oil reserves. PSO's 
furnace oil sales to KESC has gone down by 13 per cent in the first 
On the other hand, light diesel oil (LDO) volumes have also been 
the hardest hit. Aggregate LDO volumes for July and August were 
down 25 per cent as compared to same period last year. 
Transportation volumes, however, have shown a nominal decline. 
Motor gas volumes were down by over 2 per cent.
"This may be because austerity in the companies which has reduced 
the use of cars. But it has nothing to do with 25 per cent price 
hike", an official at the oil marketing company said. The country's 
overall petroleum imports have dropped by 41 per cent in dollar 
terms in the first quarter of 1998-99 compared to the same period 
last year.

Poor management of resources impedes growth: IBRD

ISLAMABAD, Oct 27: Forty-one projects were under implementation in 
Pakistan under a World Bank portfolio totalling $4.2 billion in 
fiscal 1998, according to a bank report.
Overall, the World Bank has approved a total of 95 loans and 140 
credits for Pakistan totalling more than $10 billion since 1952.
Out of the projects that were being implemented in fiscal 1998, 24 
per cent were social sector projects targeting education, family 
planning, health, and nutrition. Thus the social sector claimed the 
largest share in the portfolio. This was followed by electric power 
and energy (23 per cent) and agriculture sector projects (15 per 
Emphasising the importance of agriculture sector projects, the 
report notes that poor natural resource management has had a 
negative impact on Pakistan's land, water and agricultural resource 
base. Environmental degradation and pollution are affecting public 
health and productivity in agriculture and other parts of the 
economy, thus constraining GDP growth.
Almost all surface water is contaminated by pollution from domestic 
and industrial waste and agricultural runoff, it observes. For 
example, the proportion of land in Pakistan's four provinces 
degraded by various factors is as high as 42 per cent. The report 
attributes specifically to water and wind erosion, salination, 
water-logging, and overgrazing. At the same time, it adds, air 
pollution levels are rising and already above World Health 
Organization standards in Pakistan's largest cities, Karachi and 
The strategy being followed in Pakistan's agriculture sector is the 
peculiar stock in trade of the Bretton Woods Institutions including 
the World Bank. It includes discontinuation of the system of 
support prices that are considered essential by conscientious 

experts of Pakistan for maintaining the growth rate of crops by 
obviating uncertainty and instability about prices and protecting 
the farmers and consumers from manipulations of the middle man.
Other elements of the World Bank strategy, as elucidated by the 
report are removal of residual subsidies on farm inputs, improving 
the efficiency of public expenditures, strengthening institutions 
and building local capacity and assisting in resource management 
and environmental protection.
One of the major projects for which the Bank approved a $285 
million credit last year is the National Drainage Programme. 

'Anti-dumping issue be raised at govt level' 
KARACHI, Oct 29: Pakistan should take up the anti-dumping issue 
with Japan at government level if it wants to seek its removal 
earlier than the expiry period in the year 2000.
This was suggested by the visiting chairman of Japan's Textile Yarn 
Importers Association, J. Fukunaga, in a meeting with APTMA 
Chairman Humayun Ellahi Sheikh and senior members of the 
association here on Thursday.
"Since the Japanese government has taken the decision to impose 
punitive duties on import of yarn from Pakistan, the only way to 
have the government reconsider its decision is on government to 
government basis," he maintained.
APTMA Chairman Humayun Ellahi Sheikh said that the anti-dumping 
duties on export of cotton yarn to Japan has put spinning industry 
of Pakistan at an unfair disadvantage, besides giving wrong signals 
to other countries to follow suit, if the dumping duties are not 
lifted immediately.
For keeping Pakistan's mutual interests intact with Japan, which is 
Pakistan's significant buyer of cotton yarn as well as supplier of 
machinery, he said it was imperative that the anti- dumping duty 
imposed on 20/1 and 21/1 carded cotton yarn is removed at the 
In 1993, Japan was importing 79 per cent of her requirement of 
cotton yarn from Pakistan, but the share of Pakistan in 
quantitative terms declined to 56 per cent in 1997, a very large 
reduction of 23 per cent in Pakistan's exports to Japan.
The downward trend in export of Pakistani cotton yarn from 1994 
onwards could be attributed to imposition of anti-dumping duty in 
August, 1995.
Resultantly, export of cotton yarn from India to Japan has picked 
up, as there is no anti-dumping duty on Indian cotton yarn.
US sanctions not to affect trade: UK official

ISLAMABAD, Oct 26: Britain's trade with Pakistan was not affected 
by the US sanctions and businessmen were keen to promote trade and 
economic relations.

This was stated by Lohn Lownds, Deputy Head, South Asia Group, UK 
Department of Trade and Industry, and Joe Preston, Commercial 
Attache at British High Commission, Islamabad, who called on the 
President, Islamabad Chamber of Commerce and Industry (ICCI), 
Sheikh Baser Daud, here on Monday. 
They reviewed Pakistan's current economic situation as well as 
trends in Pakistan-British bilateral trade.
They pointed out that news in the British Press about economic 
stagnation and difficulties faced by Pakistan following the US 
economic sanctions, the stalled negotiations between Pakistan and 
IMF and the impasse relating to the IPPs were causing concern to 
the British trading community.
Responding to the statement made by the visitors from U.K., the 
ICCI President, Sheikh Daud said following the US economic 
sanctions, IMF's conditionalities for loan and unwillingness of the 
western donors to release the anticipated aid to Pakistan, 
industrialization process continues to remain slow.
This and many other factors like involvement in Afghanistan war 
adversely affected Pakistan's economy and escalated the prices of 
commodities as well as imported equipment needed by our industry, 
he added.
He said that the Islamabad Chamber would welcome British traders 
and industrialists. He urged the visitors to use their good offices 
and help restore Pakistan's aid.
He said that industrialization process in Pakistan received a 
serious setback in 1971 following nationalization.

Delegation of powers to CBR 
Ikram Hoti

ISLAMABAD, Oct 26: The Adhoc Policy Board, created for 
restructuring of the Central Board of Revenue, is expected to 
decide on Wednesday of delegating powers to the CBR chairman and 
his colleagues as members of the board, with an extra Rs1 billion 
grant for execution of the new policies for improving tax revenue. 
Sources said Wednesday's meeting to be chaired by Hafeez A Pasha, 
Adviser to Prime Minister on Economic Affairs and Planning will 
take up the proposal for delegation of powers within the parameters 
of the sanctions given by prime minister.
The sanctions given about two months ago allowing the chairman to 
appoint professionals from private sector to the CBR posts is 
likely to be created formally by the APB in its Wednesday meeting. 
These posts, which include member-level slots at the headquarters 
and directors to run the technically equipped wings of the CBR, 
have already been proposed by its chairman and duly wetted by the 
ministry of finance.
The APB will give final approval to the expansion of the present 
set up " to strengthen group functions". For this purpose, the 
eligibility criteria for hiring of professionals from the private 
sector would also be given approval. The new wings to be created in 
the CBR for strengthening the group functions would be to 
Management Information Services, audit, legal, human resource 
development, and budget and evaluation.
The pay scales of private sector member-level officials, directly 
hired for appointment as heads of these wings would also be given 
final shape in the meeting. The APB will also clear a proposal for 
banding of different grades and compression of officer grades 
attached to the federal tax collecting machinery. 
This proposal has been submitted to the board for doing away with a 
number of tiers operative in the structure of the graded officials 
of CBR, with a view to simplifying this structure and allow better 
Once cleared, this proposal will become effective for compression 
of grades 5-11 and 14-16, which would mean that the CBR will have 
only four operative grade officials, with an offer of funds to 
train themselves for the future requirements of tax collection. "We 
will, under these proposed compression of scales/grades, give 
option to the entire staff and officers cadres to either remain 
under the present (low-paid) categories or to be put under the new 
scales which would be better paid", said a senior CBR official. A 
sum of Rs156 million has already been allocated by the CBR for 
imparting training to the staff members that opt for the new 
The last item on the agenda for the APB is the issue of Rs1billion 
grant to enable CBR perform its functions for the creation of new 
posts, impart training, and pay bonus money to the staff and 
officials for performing as per the revenue collection targets set 
for the financial year 1998-99. The board will also clear the 
criteria proposed for performance bonus payment, and the amount to 
be paid in bonus for the fourth quarter of the financial year 1997-

Oct tax collection estimated at Rs18bn
Ikram Hoti

ISLAMABAD, Oct 27: The tax revenue during the current month is 
estimated at Rs18 billion with the collection recorded by October 
26 amounting to Rs15 billion, sources said.
The CBR reported to the prime minister Tuesday that it collected 
Rs15 billion by October 26, and the CBR officials say they expect 
only Rs75 billion in first four months of current financial year.
Though, CBR is officially disowning the reports of having told 
Prime Minister Nawaz Sharif and IMF officials that the target of 
collection for 1998-99 will have to be revised downwards from 
budgeted Rs352 billion, a senior CBR officials approached for the 
latest performance said, adding they did not expect to collect even 
Rs300 billion for the whole fiscal.
As the performance on collecting federal taxes is to be one of the 
most important agenda items in tomorrow's (Wednesday) meeting of 
the Adhoc Policy Board, the payment of reward money for improvement 
in collection would be expedited, but the CBR officials monitoring 
imports and production reports from the field say that all analyses 
of prospects for better collection are being rejected as 
"optimistic" by the senior cadres.
They say that there is a report of about 19 per cent shortfall in 
import of raw materials and machinery in the first four months of 
the 1998-99 as against what was imported in the same period last 
year, "how can we say that there is going to be improvement in 
production in the coming months." 
They argue that the improvement in production, which means better 
collection of sales tax, central excise duty and income tax can 
only be expected if import of raw materials and machinery recorded 

Dollar sheds 70 paisa 

KARACHI, Oct 29: The US dollar that had risen to an all time high 
of Rs 56.35 in the inter-bank market on Wednesday fell to Rs 55.65 
on Thursday.
The State Bank composite exchange rates based on the average buying 
and selling prices of selected banks stood at Rs 50.71 for buying 
and Rs 51.10 for sellingup from Rs 50.68 and Rs 51.06 on 
Senior bankers linked the 70 paisa fall in the maximum value of the 
green bill to what they called bankers recovery from the panic 
created by a hasty deal on Wednesday.
They said floating inter-bank rates closed at Rs 55.55 and Rs 55.65 
for spot buying and selling on Thursday against the Wednesday close 
of Rs 55.75 and Rs 56.35 because there was no big demand for the 
greenback in the market.
On Wednesday a foreign bank had purchased some $1.5 million in 
haste at an unrealistically high price of Rs 55.80 per dollar that 
led to a cyclic increase in the price of the dollar.

Stocks maintain optimistic outlook

KARACHI, Oct 30: Stocks on Friday maintained an optimistic outlook 
as leading shares tended further higher on active follow-up support 
aided partly by higher dividend news, notably from the PTCL. The 
KSE 100-share recovered another 11.51 points at 841.70.
It was largely the strength of the PTCL, after the announcement of 
final dividend at the rate of 18% for the year ended June 30,1998, 
which took the entire market along with it in the plus column, 
considered an outstanding performance at the weekend session.
The interesting feature was that contrary to market predictions, 
the PTCL showed higher sales totalling over Rs 46.00bn as compared 
to Rs 40bn a year back and interim sales and pretax profit is said 
to be on the higher side.
It was perhaps in this background that investors were not inclined 
to take a bearish view of rumours of the governor's rule or an 
imminent fall of the Sindh government after the exit of Muttahida 
Quami Movement(MQM) as coalition partners.
The KSE 100-share index maintained its upward drive and posted a 
fresh rise of 11.51 points at 841.70 as compared to 830.19 a day 
earlier, reflecting the strength of leading base shares.
'The perception of a relative peace in the city after the 
governor's rule might still be a remote possibility as the tense 
situation tells, investors seem to be taking an optimistic outlook 
for any possible change', floor brokers said.
What appears to be the chief stimulating force behind the market's 
current firm stance is the perception of an early resumption of the 
IMF aid and its likely positive impact on the economy, they added.
But beyond it, rumours are floating in the rings that massive 
borrowings by the government from the local banks reflects that 
Pakistan may seek moratorium on foreign debt to about $32 billion 
by the middle of the next month, analysts said.
'But we don't see any fundamental change in the current bearish 
psychology of the market until the economy is out from the 
prevailing mess', they added.
Occasional technical flutters here and there could be witnessed but 
investors might not move out of the safe havens until the broader 
market changes its outlook, they said.
The second interim dividend at the rate of 30% by Fauji Fertiliser 
was well received in the rings as it forestalled further decline in 
its share value but rather evoked active short-covering at the 
lower levels.
It had already paid the first interim of 20%. Last it paid total 
dividend of 88 percent. Its close rival, Engro Chemical also 
performed well.
Parke-Davis, which suffered a sharp decline of Rs 85.00 on Thursday 
came in for strong support and managed to close with a gain of 
65.00, but still in deficit of Rs 20.00.
Other good gainers were led by Burshane Pakistan, which spurted by 
Rs 24.00 followed by PSO, Lever Brothers, National Refinery, Engro 
Chemicals, Packages, and Gadoon Textiles, rising by one rupee to Rs 
Auto shares came in for strong support at the lower levels on news 
of recent price increases and were quoted higher by Rs 4.50 to 9.00 
for Pak-Suzuki Motors and Millat Tractors.
Prominent losers were led by Fazal Textiles, Dadabhoy Cement, 
Reckitt and Colman, and Pakistan Gum Chemical, falling by Rs 1.10 
to 4.00.
Trading volume fell to 56m shares from the previous 85m shares as 
sellers were not inclined to take profits anticipa-ting 
continuation of the weekend rally. 
Out of 116 actives, 45 shares rose, 34 fell, with 37 shares holding 
on to the last levels.
The most active list was again topped by PTCL, up 25 paisa at Rs 
19.45 on 32m shares followed by Hub-Power, higher 50 paisa at Rs 
11.05 on 14m shares, Sui Southern, firm 70 paisa at Rs 8.40 o 
1.436m shares, Engro Chemical, higher Rs 1.55 at 51.30 on 1.362m 
shares and Sui Southern, up 30 paisa at Rs 6.95 on 1.216m shares.
Other actively traded shares were led by Fateh Textiles, unchanged 
on 0.639m shares followed by Southern Electric, lower 20 paisa on 
0.586m shares, ICI Pakistan, easy five paisa on 0.482m shares, 
Japan Power, up 25 paisa on 0.477m shares, Bank of Punjab, steady 
10 paisa on 0.330m shares and FFC-Jordan Fertiliser, unchanged on 
DEFAULTING COMPANIES; Only Al-Qadir Textiles came in for stray 
support but was quoted unchanged on 200 shares.
DIVIDEND: Pakistan Telecommunication, cash 18%, Grindlays Modaraba, 
22%, Confidence Mutual Fund 10%, Bolan Castings 15%, for the year 
ended June 30, 1998 and an interim dividend of 10% by U.D.L. 
Modaraba for the year ending June 30,1999 and second interim at the 
rate of 30% by Fauji Fertiliser, 20% already paid.
BOARD MEETINGS: Colony Thal Textiles, Millat Tractors and Javed 
Omer Vohra & Co,on Nov 4,6,6 respectively.

Back to the top
Metropolitan police
Ardeshir Cowasjee

HOPE is not dead. The restructuring programme of the Karachi Police 
is still on. The concept of the Karachi Metropolitan Police 
Department (KPMD), operating under the supervision of the Karachi 
Metropolitan Public Safety Commission (KMPSC) composed of citizens 
and members of the provincial government, still lives.
The transformation of the police system of our metropolitan cities 
into a system to be controlled by Public Safety Commissionerates 
has been on the anvil since it was first mooted in 1962 by Alvin 
Robert Cornelius, a member of the distinguished Indian Civil 
Service who retired as the Chief Justice of Pakistan. He did not 
lay a newly shaped egg; he logically recommended that our large 
cities be policed as are other such cities of the world. Over 
sixteen police reports subsequently written have, with variations, 
recommended similar reforms.
The aim has always been and still is to free the police from the 
clutches of our corrupt and selfish politicians. They use the 
police force to get themselves elected, and thereafter to 
perpetuate their stranglehold. By and large, the bureaucrats 
working under our politicos have been reduced to snivelling 
servants who selflessly go along with their masters' designs. The 
safety of life and property of the citizens is of little 
Each head of government on assuming office has made noises about 
police reforms and thereafter has purposefully ignored the subject. 
That it is vitally important that metropolitan cities such as 
Karachi and Lahore must have their own independent police forces 
has never been denied.
Mr Nawaz Sharif, true to form, soon after he was elected to his 
second round in February 1997, assigned the restructuring task to 
Major General Sikander Hayat Khan, Chairman of his Monitoring and 
Evaluation Cell (M&EC). A police reforms package was agreed to in 
principle by the cabinet a few months later. But law and order 
being a provincial subject, the matter was referred to the 
provincial governments and then rejected by all of them, the 
politicians and bureaucrats not wishing to relinquish one iota of 
power.  In Karachi, the tally of those killed by the terrorists 
over this past decade has been in the region of a dozen a day. 
Public immunity to news of death and organized killings is such 
that eyebrows are no longer raised when the daily tally is released 
to the press.
The prime minister, seemingly, has realized that whatever measures 
have been taken to ensure his survival, constitutionally or extra-
constitutionally, by him and his scullery assistants are not such 
as to allow him to survive unless the safety of the people is 
ensured and the economy revived. He has given signs of having 
suddenly woken up to the plight of Karachi.
The coordinator of the PM's National Agenda Monitoring Cell, Haroon 
Khwaja, was deputed to set up a committee including certain members 
of his cell  Bilal Ahmed, Shehzad Naqvi, Munir Kamal, Zulfikar 
Cheema and Jameel Yusuf of the CPLC. They researched, waded through 
reams of paper and arrived at the unanimous conclusion that the 
Japanese model, supervised by a PSC, adapted to suit local 
conditions and norms, was ideal for Karachi. The committee made a 
presentation to the PM at Lahore on August 15. The usual dilly-
dallying took place. No go. The killings continued, the terrorists 
upped their ante.
On October 12, I was asked to join the committee and was invited to 
a meeting to be held in Karachi on October 15 over which the PM was 
to preside. The objections of the politicians and bureaucrats were 
heard, and the PM directed that his cell members meet the Sindh 
chief secretary and others to sort out the differences and present 
to him an implementation schedule for the new plan when he returned 
to Karachi on the 20th. All ended on a deceptively positive note.
The people were hopeful of a change, hopeful that finally a 
decision would be taken that would go some way towards ending the 
city's misery. This newspaper and other publications editorially 
supported the proposed scheme, as did many citizens who wrote to 
the respective editors.
The committee's efforts to meet the concerned officials on the 16th 
failed. The excuse was that they were too busy. We met at 1100 
hours on the 17th, they raised the usual frivolous objections. We 
requested them to list their objections and apprehensions together 
with their proposals as to how these could be overcome. The PM had 
approved the scheme in principle, and was keen that it went 
through. The CPLC office would remain open round the clock, over 
the weekend, and any information they wanted would be given at a 
moment's notice. We arranged to meet again at 1500 hours on the 
We received a list of their apprehensions, objections, etc, at 1230 
hours on the 19th. When we arrived for the scheduled meeting, no 
one from the government turned up. Sindh Home Secretary Wajid Rana 
was contacted and he agreed to come over. He told us he was in no 
position to comment on what had been sent to us. We informed him 
that our suggestions as to the solutions to their worries would be 
given to them before the day's end so that they could mull over 
them before we all met the PM at 1600 hours the next day, the 20th.

The citizens and their lawyers worked round the clock and a 
broadsheet showing both apprehensions and solutions was prepared 
and sent to the home secretary before midnight.
At the meeting on the 20th, over which the PM presided, lines were 
clearly drawn. The government side was totally disinterested in our 
broadsheet  oozing negativity. To enlighten its readers, this 
newspaper deemed it necessary to publish it in full on October 17.
Definite affirmatives to the proposed scheme: federal minister 
Sheikh Rashid, streetwise, sharp. The only minister capable of 
walking the streets of Karachi unescorted, the only man able to 
converse with the awam at their own level. He told us that he had 
gone out on his own at 0700 hours, had found the people 
apprehensive, fearful and utterly distrustful of the police force. 
His recommendation was that a decision be taken immediately and the 
implementation of the scheme be put into gear. Naturally, strongly 
and positively in the affirmative were Jameel Yusuf, Haroon Khwaja 
and I.
Sheepish affirmatives: federal minister Mushahidsahib, Ahsan Iqbal, 
Sindh law minister Saleem Zia.
Silent: Major-General Imtiaz Shaheen, the Rangers' chief, He was 
not asked to speak. But he too shares federal interior minister 
Chaudhry Shujaat's view that the city can be cleaned up in ten 
days, if the will is there and expediency shed. The Rangers know 
what is what, who is who, what and who are where. Left to 
themselves, they can do the job they are hired and paid to do. 
Acting governor Nawab Mirza uttered not a word, though his thoughts 
were known.
Definite 'No': federal minister Chaudhry Nisar Ali, Sindh CM 
Liaquat Jatoi, Sindh chief secretary Salik Nazir Ahmed, PM's 
special secretary Saeed Mehdi, Interior Secretary Hafizullah.
Sheepish 'No': federal minister Ghous Ali Shah and Haleem Siddiqui, 
IGP Aftab Nabi.
The PM, from what one could make out, supported the change, but in 
view of Jatoi's request that as he had been away having treatment 
in London for ulcer, he needed time to study the proposals, did not 
push the matter. Fine, said the PM. Let me have your report in 10 
days' time, i.e. by October 31. Interior secretary Hafizullah was 
to write his report to be submitted in seven days, i.e. by October 
Insatiable greed for power, pelf, plots, peanuts, powder puffs and 
what have you invariably influences the now warped bureaucratic 
thinking, our administrators having been successfully reduced to 
whingeing wimps by the machinations of the politicians.
During this past decade, dating from October 1988, the chief 
ministers of Sindh and their federal bosses have had 13 IGPs of 
Sindh, the average tenure being 29 weeks. From the time Liaquat 
Jatoi entered in 1997, he has seen off six DIGs in charge of 
Karachi; the seventh is now in place. Four of the five districts of 
Karachi have had five SSPs, and one four SSPs. The total number of 
SHO changes/transfers in the main Karachi police stations are 120. 
The hammer price of one police station, Gadap, is well over a crore 
(approx. Rs.15 million).
Yesterday morning's news had it that those suspected of murdering 
Hakim Mohammad Said, together with their accomplices, have been 
found and apprehended. The other news was that the MQM had decided 
to rejoin the Sindh government, to resume their position as 
coalition partners. The two reports are, of course, completely 
One is reminded of an October 23 news item in Dawn: "Shujaat had 
told the prime minister before leaving for Casablanca that the time 
has come when the PML government should decide whther it wanted to 
continue wooing its coalition partners or improve the law and order 

Chinese water torture
Irfan Husain

WHILE discussing the succession of revelations about Asif Zardari 
and Benazir Bhutto's free and easy ways with the public exchequer a 
couple of years ago, I had likened the series of devastating 
reports to the Chinese water torture.
In this exquisitely painful torment, the victim's head is shaved 
and he is strapped so he cannot move any part of his body. Placed 
in a pitch-dark room under a container, precisely spaced drops of 
water hit the same spot on his head. Initially, this is only mildly 
uncomfortable, but soon, the victim's entire universe is reduced to 
that one spot on his skull as he waits for the next drop. He can't 
think about anything else as his senses are deprived of all other 
sensation except the slow and precise drip, drip, drip of water. He 
loses all sense of time and space until very soon, he is screaming 
for mercy.
I'm sure Nawaz Sharif can sympathize with victims of the Chinese 
water torture. He, too, is being subjected to a steady succession 
of leaks in the form of stories, allegations and downright 
accusations of corruption and massive abuse of power in some of the 
most prestigious and credible newspapers in Britain. This last 
month has seen weekly revelations appear in the Observer, the 
Independent and the Sunday Times. But luckily for Mr Sharif, he 
doesn't have to have his head shaved.
Each story has been officially denied but not effectively rebutted. 
Threats have been made to sue the publication in question, but no 
legal notices have been issued. Mr Mahmood Qazi, the person who, 
together with his family, is supposed to be the unwitting front man 
in one particular scam featuring a senior Cabinet member working 
for the Sharifs, has denied that he and his family were used to 
open bank accounts against which huge loans were taken by the 
Sharifs and siphoned off.
According to the government news agency, he now says he did not 
make any such accusations to the media. But Newsline has carried 
photocopies of letters from banks to sundry members of the Qazi 
family, asking them to settle loans amounting to millions of 
There has never been any doubt about the Sharif family's Mughalian 
confusion between their personal bank accounts and the national 
exchequer. For nearly two decades, their fortunes have soared after 
their entry into politics. The fact that according to published 
information, they have not paid the taxes, others in their 
financial bracket are supposed to have obviously helped them on 
their way to building the foremost industrial empire in Pakistan.
While it does not fault him for his modus operandi in becoming a 
major industrialist, the business community is understandably upset 
when the prime minister requests others to pay their taxes. On a 
recent visit to Karachi, he asked a thousand businessmen to bring 
back five million dollars each from overseas accounts so that we 
could have five billion dollars in the kitty to avoid the default 
that looms ahead. This demand was met with an embarrassed silence 
as the audience shuffled and looked at the floor. Everybody was too 
polite to ask the PM to put his money where his mouth is, and 
pledge at least five million dollars himself to get the ball 
God knows he can afford it, if recent newspaper reports are 
accurate. The fact that no legal notices have been issued would 
seem to substantiate sundry allegations of money laundering. 
However, Mr Sharif has made no commitment, and no businessman to my 
knowledge has pledged a dime.
Despite my years in Pakistan, the brazenness of our leaders has 
never failed to amaze me whether it is Nawaz Sharif or Benazir 
Bhutto. Here are people who, according to their own signed 
statements, have paid peanuts in taxes, and are now demanding of us 
that we shell out extortionate sums to finance the state's 
extravagance. For somebody who has recently paid serious sums into 
the exchequer in taxes, this is pretty galling. The prime minister 
and his family have defaulted on loans running into billions of 
rupees, and are now insisting that the business community should 
mend its way and repay its outstanding debts. Understandably, the 
recovery campaign has not been a resounding success.
The ruling party is claiming that the recent series of revelations 
in the British press has been inspired by its opponents. Shades of 
Benazir Bhutto's denunciation of a "media trial" against her. We 
are now in a situation where the two major Pakistani politicians 
are both claiming that they are as clean as the driven snow, and 
are being slandered through the foreign media by political enemies. 
Both are on the verge of suing the newspapers concerned, but for 
some mysterious reason, neither has actually taken the plunge. Hey, 
jump in! The water's fine except for the sharks!
As I wrote in these columns a few weeks ago, the libel laws in the 
West, and particularly in England, are very stringent. While the 
press is free to criticise policies, allegations of corruption have 
to be backed up by evidence. The penalties imposed against careless 
editors and publishers in the past have been substantial. So if the 
Observer, the Independent and the Sunday Times run major stories 
with specific charges of financial irregularities, chances are that 
they are largely accurate. The fact that neither Nawaz Sharif nor 

Benazir Bhutto before him has chosen to seek legal remedy for the 
damaging charges against them would seem to confirm the truth of 
the allegations.
Even minus the corruption, the lifestyle of both leaders is opulent 
to the point of obscenity. Nawaz Sharif's predilection for 
expensive cars is well known. Benazir Bhutto's hundred thousand 
pound necklace - now impounded by the ungentlemanly Swiss - is now 
as famous as Imelda Macros' fabled shoe collection.
So while Nawaz Sharif and Benazir Bhutto protest their innocence, 
what we actually hear is the drip, drip, drip of water.

Pakistan lose first series to Australia in 39 years
Samiul Hasan

KARACHI, Oct 26: A match-saving unbeaten century by Ijaz Ahmad 
pulled Pakistan from the jaws of defeat in the third cricket Test 
which ended in a draw on Monday. But his effort failed to prevent 
Australia from winning their first series here in 39 years.
Pakistan, who began their second innings on the fifth day and 
chased an impossible 419-run target, never achieved before in 122-
year history of Test cricket, finished the day at 262 for five.
Australia, who won the first Test at Rawalpindi by an innings and 
99 runs, had left Pakistan tottering at 78 for four at lunch before 
Ijaz showed his batting prowess by stroking a superlative 120.

Australia: 280 and 390
Pakistan: 252 and 262-5
Australia's last Test win over Pakistan in Pakistan was in 1959-60 
when Richie Benaud's team beat Fazal Mahmood's side 2-0. Since 
then, five Australian teams visited Pakistan under legends like 
Bobby Simpson, Greg Chappell, Kim Hughes, Allan Border and Mark 
Taylor himself. But none could end the dominance of the Pakistanis.
The series, which will go down in the annals of history as Mark 
Taylor's series after the batsman accumulated 513 runs in five 
innings including an unbeaten 334, strengthened Australia's claims 
of being undisputed Test world champions.
A long debate will continue on the reasons of Pakistan's defeat, 
but the home team definitely lacked in unity, team spirit and 
cohesion. Physical fitness of the players left much to be desired. 
If anything was left, it was completed by some doubtful umpiring 
decisions against Pakistan by David Orchard.
Reverting to the day's play, Pakistan looked in dire straits when 
Colin Miller captured three wickets in 22 balls in the first hour 
of day's play to leave Pakistan struggling at three for 35. The 
problems for the home team compounded when Yousuf Yohanna's 
laborious innings ended a stroke before lunch.
But Ijaz Ahmad and Moin Khan got together in a rescue act by 
putting on 153 runs for the fifth wicket. When Moin Khan was 
brilliantly caught by Stuart MacGill at square-leg off Darren 
Lehmann at the score of 228, the two had taken Pakistan to safer 
Ijaz Ahmad blasted his 10th century in 48 Tests from 211 balls with 
11 blistering boundaries. It was Ijaz's fifth century against 
Australia (third in succession) and as many in Pakistan.
Ijaz, who had also scored 155 at Peshawar in the previous Test, had 
faced 250 balls in 327 minutes of batting when play finally ended 
with seven overs of the mandatory 15 still remaining. His handsome 
innings was laced with 16 hits to the fence.
Stuart MacGill, who picked up the scalp of, Yousuf Yohanna finished 
with 15 wickets in the series. Glenn McGrath, who had bagged five 
wickets in Pakistan's first innings, ended up with a series haul of 
12 wickets.
World's toughest hockey tournament begins today
By Ilyas Beg

LAHORE, Oct 30: The top six hockey teams of the world begin their 
bid for winning the 20th Champions Trophy Hockey Tournament at the 
picturesque National Hockey Stadium (NHS) on Saturday.
The venue has been tastefully decorated. However, the sale of 
tickets is not very encouraging. But all arrangements  for holding 
the toughest hockey competition have been completed.
The teams will be chosen out of the following players:
Pakistan: Ahmad Alam, Saleem Aamir, Ali Raza, Muhammad Usman, Imran 
Yousaf, Waseem Ahmad, Haider Husain, Muhammad Sarwar, Kamran 
Ashraf, Naveed Iqbal, Anis Ahmad, Muhammad Qasim, Sohail Abbas, 
Asad Ali, Atif Bashir, Babar Abdullah.

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