------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 3 July 1999 Issue : 05/27 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + New Delhi rejects talks offer + Nawaz reiterates call for dialogue + Saiduzzaman takes over as CJ + Talks with Chinese leaders 'totally satisfactory': FO + OIC endorses Pakistan stand on Kashmir + PIA may opt for smaller aircraft + APC demands OIC summit at Islamabad + Local call rates increased by 20pc: PTCL + Sale up to $10,000 without travel documents: FAP + Zinni carried no specific proposal to Pakistan: US + Pakistan to receive eight French Mirage jets next month + Follow teachings of Holy Prophet, urge Tarar, Nawaz + NA passes Rs91.35bn supplementary budget --------------------------------- BUSINESS & ECONOMY + Central Excise Rules amended + 'Two million people to slip below poverty line' + Software exports target raised to $1bn by 2005 + Adamjee family retains insurance co management + Airlines to expand operations + 2.4 million unemployed this year + $300m IMF tranche to be offered this month + No decision yet on fund sharing by provinces + CBR amends import duty notifications + 'Business climate from bad to worse' + KSE index crosses 1,100-point barrier --------------------------------------- EDITORIALS & FEATURES + Weavers of lies Ardeshir Cowasjee + What is the political leadership up to? Ayaz Amir + The real cost of Kashmir Irfan Husain ----------- SPORTS + Majid going to office but not as CEO + No communication on EB investigation: PCB Chairman + PCB asked to arrange Miandad's presence on July 8

New Delhi rejects talks offer

NEW DELHI, July 2: India on Friday virtually rejected any 
possibility of a dialogue with Pakistan until "Islamabad abandoned 
an armed intrusion in the Kargil sector of occupied Kashmir."
Foreign Office spokesman Raminder Singh Jassal told newsmen in 
Delhi that India hoped Pakistan would heed the advice of the 
international community to respect the sanctity of the military 
Line of Control (LoC).
Reacting to news reports from Pakistan that a major breakthrough to 
avert the threat of a third India-Pakistan war over Kashmir is 
expected imminently, Jassal said he was not aware if any contact 
has been established between the two neighbours in recent days.
"We will react when we are made aware of it (peace proposals by 
Pakistan)," the Indian official said.
Delhi also claimed that its armed forces had checked Pakistan's 
intrusion in Kargil but regretted that there was no evidence of the 
Pakistani army withdrawing from Kargil.
"The Indian armed forces have checked the intrusions and are 
engaged in reversing it. In some areas still under Pakistani 
occupation, desperate efforts are being made to keep the intruders 

Nawaz reiterates call for dialogue
Bureau Report

ISLAMABAD, July 1: Prime Minister Nawaz Sharif presided a meeting 
here on Thursday to discuss the ongoing conflict with India 
specially in the light of his three-day visit to China.
Informed sources said he told the meeting, which continued for over 
75 minutes, that China had fully supported Pakistan's point of view 
over Kashmir. The meeting was attended by the Chairman of Joint 
Chiefs of Staff Committee and Army Chief, Gen Pervez Musharraf, 
secretaries of foreign affairs and defence and the senior officials 
of the security agencies.
The prime minister said that Pakistan wanted to de-escalate the 
situation by holding talks with the Indian authorities. He 
regretted that his Indian counterpart was not encouraging dialogue 
between the two countries. He said Pakistan wanted peace but if war 
was imposed on it, a befitting reply would be given to the enemy.
He briefed the meeting about his talks with the senior Chinese 
leaders and said China had been informed about the latest security 
situation in the region. 
The prime minister also discussed the possibility of his visit to 
the United States to meet President Bill Clinton and inform him 
about the latest situation obtaining the region.
Sources said the army chief told the prime minister that all 
possible measures had been taken to protect the Pakistan borders 
against any Indian attack. He said that border positions on the 
Line of Control (LoC) and at other places were further being 
reinforced to meet any challenge.
The sources said that the army chief also said that Mujahideen were 
giving toughest time to the Indian army in Kargil and that their 
indigenous movement would one day become a success story.
The officials of the security agencies briefed the meeting about 
various issues.

Saiduzzaman takes over as CJ
By Rafaqat Ali

ISLAMABAD, July 1: Justice Saiduzzaman Siddiqui, the senior most 
judge of the Supreme Court, on Thursday took oath as the Chief 
Justice of Pakistan. President Rafiq Ahmad Tarar administered oath 
to him at a ceremony held here at the President House.
His appointment as Chief Justice-designate was notified by the 
federal government on May 11. Justice Siddiqui is 14th chief 
Justice of Pakistan (minus Justice Sajjad Ali Shah).
The ceremony was attended by Prime Minister Nawaz Sharif, the 
chairman of Senate, Speaker National Assembly, all the judges of 
the Supreme Court and members of the parliament.
The appointment of Justice Siddiqui has been made on the basis of 
seniority as was held in the case of Justice Sajjad Ali Shah. A 10-
member bench headed by Justice Siddiqui had held that the senior-
most judge of the court would have legitimate expectancy to be 
appointed as the chief justice, if there was nothing against him on 
In the light of the SC judgment, the federal government had 
renotified the appointment of Justice Shah as the Chief Justice and 
relegated him to an ordinary judge. The court, however, had held 
that all the decisions made by Justice Shah as the Chief Justice 
would be valid in the light of the doctrine of de facto.
Justice Siddiqui will reach the age of superannuation on Nov 30, 
2002. By that time Justice Irshad Hasan Khan, Justice Raja Afrasiab 
Khan, Justice Mohammad Bashir Jehangiri and Justice Nasir Aslam 
Zahid would have retired.
If the principle of seniority is maintained, Justice Munawar Ahmed 
Mirza would take over as the Chief Justice of Pakistan on Dec 1, 
2002, after the retirement of Justice Siddiqui. He would continue 
up to Aug 17, 2007.
Justice Siddiqui has a number of similarities with his predecessor, 
Justice Ajmal Mian. Both started their legal profession as junior 
of Syed Sharifuddin Pirzada. Both started their judicial career as 
judges of the Sindh High Court. Later, both became chief justice of 
the SHC.
The chief justices of Pakistan are: Justice Sir Mian Abdur Rashid, 
Justice Mohammad Munir, Justice Mohammad Shahabuddin, Justice A.R. 
Cornelius, Justice S.A. Rahman, Justice Fazal Akbar, Justice 
Hamoodur Rehman, Justice Yaqoob Ali Khan, Justice Anwarul Haq, 
Justice Mohammad Haleem, Justice Mohammad Afzal Zullah, Justice Dr 
Nasim Hasan Shah, Justice Ajmal Mian and Justice Saiduzzaman 

Talks with Chinese leaders 'totally satisfactory': FO
By Hasan Akhtar

ISLAMABAD, July 1: Prime Minister Nawaz Sharif's talks with the 
Chinese leadership in Beijing earlier this week on the security 
situation of South Asia, with particular reference to the Kashmir 
dispute, were "totally satisfactory" from Pakistan's standpoint, 
said a Foreign Office spokesman here on Thursday.
Spokesman Tariq Altaf referred to a statement of the China's 
Foreign Office spokesperson, Zhang Qiyue, issued at the end of 
talks and telecast by China Central TV.
He said that Ms Zhang's statement/interview with China Central TV 
on the current Kashmir crisis had upheld the Pakistan viewpoint and 
supported Islamabad's proposals to defuse the LoC situation.
According to him, the Chinese spokesperson stated that her 
government would like to see maintenance of peace and stability in 
South Asia with both sides making efforts to avoid worsening of the 
The FO spokesman said that the statement reiterated China's deep 
interest in maintenance of peace in the region. 
The Foreign Office spokesman said China had observed that the 
complicated Kashmir issue left over by history "should and must be 
finally resolved by India and Pakistan through peaceful 
negotiations" and in accordance "with the spirit of Lahore 
He said that the statement clearly stipulated as had been proposed 
to India by Pakistan during the June 12 Sartaj-Jaswant meeting in 
New Delhi that the "pressing obligation" of the two sides should be 
to avoid worsening of the situation and to adopt measures 
respecting the Line of Control by resuming talks as early as 
possible for "a fair and reasonable settlement of all the disputes, 
including the Kashmir issue" .

However, the spokesman regretted, the Pakistan peace proposals were 
not received in New Delhi which even turned down its invitation to 
send Foreign Minister Jaswant Singh to Islamabad for further 
consideration of those proposals.
He pointed out that significantly the China's statement said 
nothing about the Mujahideen's role in occupied Kashmir nor did it 
suggest any withdrawal of the alleged intruders from Kargil.
In fact, he said, the statement made no specific reference to the 
Kargil situation per se, apparently regarding it essentially an 
issue arising from the main dispute on Kashmir.
This too, he said, conforms to Pakistan position that Kargil issue 
was not exclusive of the Kashmir dispute which indeed demanded a 
permanent settlement in accordance with the aspirations of Kashmiri 
people and by giving them right to self-determination.
The spokesman further said it was also apparent from the statement 
that the Indian claim of LoC violations by the Pakistan forces or 
Mujahideen, for whose withdrawal or the ejection New Delhi had been 
pressing hard, found no favour with Beijing. Instead, he added, the 
statement urged the two sides to address the current problem 
immediately without resorting to any pre-conditions for opening 
negotiations to defuse the critical situation and finding a final 

OIC endorses Pakistan stand on Kashmir

OUGADOUGOU, July 1: The foreign ministers of Islamic countries on 
Thursday, reaffirming their traditional stand, fully endorsed 
Pakistan's stance on the Jammu and Kashmir issue.

They unanimously adopted two resolutions on Kashmir and reflected 
complete support to the Pakistan's position.
This is for the first time that ICFM (Islamic countries foreign 
ministers), representing over 50 countries, have adopted two 
separate resolutions on Kashmir - one reaffirming its traditional 
stand on the fundamental issue of Jammu and Kashmir and the other 
on the current tensions along the Line of Control.
The resolutions are an endorsement of Pakistan's position not only 
on the long-standing Kashmir issue but also on the current crisis 
caused by India's war mongering and military actions along the LoC.
The resolution on the present tension expressed concern over the 
serious escalation caused by heavy Indian shelling and air strikes 
across the LoC.
It welcomed Pakistan's initiative for defusing tension and urged 
both sides to exercise restraint and resume dialogue in the spirit 
of the Lahore Declaration.
Under this resolution, the ICFM affirmed complete solidarity with 
Pakistan in its efforts to safeguard its sovereignty, political 
independence and territorial integrity.
In the resolution dealing with the Kashmir issue, the ICFM 
reaffirmed the right to self-determination in Kashmir, condemned 
the violations of human rights and called for an early resolution 
of the dispute in accordance with the UN resolutions.
The ICFM agreed to appoint a "special representative" on Kashmir to 
be nominated by the Secretary General.
The resolutions were introduced by Foreign Minister Sartaj Aziz.
The vast majority of foreign ministers, who took the floor, 
particularly underscored Pakistan's initiative in seeking a 
negotiated solution to the current tension.
A record number of 24 delegations referred to Kashmir in their 
statements. Their comments focused on the dangers of war in South 
Asia. They emphasized the need for restraint and resumption of 
dialogue in accordance with the UN resolutions, the Simla Agreement 
and the Lahore Declaration.
BILATERAL MEETINGS: During his four-day stay here, Mr Aziz held 
bilateral meetings with most heads of delegation where he explained 
the background of the current tension in Kashmir.
The meetings led to consensus and smooth passage of both 
resolutions presented by Pakistan. In the bilateral meetings, the 
foreign minister also discussed major issues at the ICFM, including 
Palestine, Kosovo, Bosnia and terrorism.
The heads of delegation with whom Mr Aziz held meetings included 
Saudi Arabia, Iran, Turkey, Egypt, Qatar, PLO, Indonesia, Niger, 
Malaysia, Iraq, Morocco, Sudan, Turkish Cyprus and Brunei.
The foreign minister was also received in audience by President 
Blaise Compaore of Burkina Faso. The FM was accompanied by 
Shaharyar M. Khan, Prime Minister's Special Envoy to Burkina Faso, 
who delivered a letter from the Prime Minister to the Burkina 
During the meeting, the president of Burkina Faso conveyed his full 
support to Pakistan's sovereignty and called for a de- escalation 
of the tension.
One of the highlights of the conference was the celebration of the 
25th anniversary of the IDB, an important specialized institution 
of the OIC. -APP
AFP adds: The annual meeting of foreign ministers of the OIC 
wrapped up on Thursday, a day earlier than planned. No reason was 
given for the meeting's early end.

PIA may opt for smaller aircraft
By Our Staff Reporter

KARACHI, June 30: The PIA has decided to place firm orders to the 
aircraft manufacturers in mid August. For this purpose 
representatives of the two major aircraft manufacturers - Airbus 
and Boeing - which have been invited to finalize their offers, will 
be meeting the PIA management in the first week of July, it is 
The two manufacturers have offered their products to the PIA 
including 747-400, 777-300, and 777-200 by Boeing and A-340- 300, 
A340-400, A330-300 and A330-600 by Airbus.
After missing two timeframes of December 1997 and March 1999 for 
induction of new aircraft in the fleet, the management has decided 
to go for small capacity aircraft. The fleet replacement committee 
comprising Yawar Ali (chairman), Air Marshal Dilawar Khan, MNA 
Mansoor Hayat Taman and Adnan Aurangzeb, after detailed studies of 
the on-going recession in the Asian countries and downtrend in the 
aviation industry has decided to go for small- capacity aircraft.

Moreover, IATA in its forecast for travel in Asia has slashed its 
growth from 7.7 per cent to 4.4 per cent a year until 2000.
The PIA management, it is learnt, has already short-listed Airbus 
330 series and Boeing 777 series as their final choice keeping in 
view the opening of the northern gateway to foreign carriers.
The PIA's modernization of its fleet is overdue as most of its 
aeroplanes have been over 20 years in service and their cost of 
maintenance had become uneconomical.

APC demands OIC summit at Islamabad
Bureau Report

ISLAMABAD, June 30: The All Parties Conference (APC) on Wednesday, 
rejected government's move of "secret diplomacy" and called for 
convening an emergency summit of the OIC, in Islamabad to muster 
international support in the face of imminent threat of Indian 
The demand was made in the "Islamabad declaration," unanimously 
adopted by the representatives of around 35 political and religious 
parties at the conference held on the initiative of veteran 
politician Nawabzada Nasrullah Khan.
The APC urged the government to take the nation into confidence 
over the "secret diplomacy" going on between the two countries.
Referring to the visit of former foreign secretary Niaz A. Naik to 
New Delhi, he refuted government's repeated clarification disowning 
Naik's visit and asked as to who provided a special plane to Mr 
"No man of sound mind would believe that Mr Vajpayee would grant an 
audience to any ordinary Pakistani in such a tense situation," the 
Nawabzada later told reporters.
"Why the government is concealing it?" he aked and alleged that the 
government was deliberately keeping the nation in dark.
On question from CNN correspondent about the western and American 
pressure on Pakistan to withdraw "infiltrators" from Kargil, 
Nawabzada said that these Mujahadeen were struggling for right of 
self-determination, which had been acknowledge in the UN 
The veteran politician, who headed Parliamentary Kashmir Committee 
during the previous government, said it was highly unfortunate that 
the Kashmir resolution had been forgotten by the international 
He said Pakistan had always extended moral and political support to 
the people of Kashmir and it would continue to do so. The 
conference condemned Indian aggression on the LoC, violation of 
Pakistan's air space and Indian threats of war against Pakistan.
The APC emphasised the need of full preparedness to counter Indian 
aggression on all fronts.
Nawabzada regretted that the government had failed in highlighting 
the Kashmir issue at the international level. "It appears that 
Pakistan has been isolated diplomatically and politically, which is 
evident from the statements of the US President, the European Union 
and G-8 countries," he said.
The conference was of the view that the Kargil flare up could not 
and must not be seen in isolation with the larger issue of Kashmir. 
It welcomed the statement of the Chief of Army Staff Gen Pervez 
Musharraf in this regard and described it as correct, realistic and 
reflecting the wishes of the people.
The resolution, besides expressing complete solidarity with the 
Mujahadeen and Pakistan Armed Forces, made a number of suggestions 
aimed at restoring internal political stability.
The APC demanded an end to political victimization of one 
opposition party in the name of accountability and to the 
governor's rule in Sindh.
"The conference believes that the need for national integrity and 
cohesion at this hour of internal and external threats to Pakistan 
was the greatest today even before," the resolution said.
The print media should be freed of all unlawful pressures and the 
electronic media be used to project national interests rather than 
as the handmaiden of the regime, it added.

Local call rates increased by 20pc: PTCL
Bureau Report

ISLAMABAD, June 29: There has been a 20 per cent increase in the 
local call charges and not 17 per cent as was reported in a section 
of the press, clarifies Pakistan Telecommunications Company (PTCL).
A PTCL spokesman in a statement here on Tuesday said that the 
charges, including central excise duty, for five minutes' local 
call (pulse remained unchanged), had been increased from Rs1.75 to 
Rs2.10 - an increase of 20 per cent.
He pointed out that NWD call charges between Islamabad-Karachi had 
been reduced from Rs28.56 to Rs21 per minute, envisaging a 
reduction of 26.7 per cent.
But the installation charges, including CED, for new telephone 
lines had been revised upward by 9.7 per cent from Rs4,000 to 
Rs4,390. A considerable increase had also been made in the line 
rent from Rs180 to Rs235, per month showing an increase of 30.6 per 
The spokesman said while revising the tariffs, due consideration 
had been given to the ground realities like imposition of corporate 
tax on PTCL, devaluation, inflation and increases in tariffs of 
other utilities.
Justifying the increase in the local charges the PTCL spokesman 
claimed that these had remained unchanged for the last several 
years despite the increase in inflation and devaluation of the 
rupee. These rates, in fact, had come down to about half (from 
$0.06 to $0.03) since 1992, the spokesman claimed.
Despite no compensatory increase in local call charges, the PTCL 
has been making drastic cut in NWD call charges for the last three 
years - 20 per cent in 1997, 15 per cent in 1998 and about 15 per 
cent in 1999 on weighted average basis.
It claimed that the reduction made on some routes was even higher 
than 26 per cent. He said the long distance call charges had been 
reduced to half in two years. Now the charges for long distance 
call between Islamabad-Karachi, Peshawar-Karachi and Lahore-Karachi 
had been reduced from Rs42 per minute to Rs21, which in real terms 
was a 67 per cent cut.
"This has brought our long distance call tariffs in line with 
international trends making a significant reduction in the cost of 
telecom service for both business and residential customers.
"Now the residential customers can make NWD calls on major routes 
for just Rs5.25 per minute from 10:30pm to 5:30am. Any one can make 
long distance calls from customer services centres and PCOs (both 
manual and card-operated) at reduced rates between cities and small 
The PTCL believed that the increase in line rent and local call 
charges were sufficient to compensate the impact of reduction in 
NWD charges, decreasing international accounting rates and 
concessions on leased lines to promote information technology (IT) 
in the country.
Besides, it said, the overseas call charges had not been revised 
for the last several years despite devaluation. Hence, there had 
been a real decrease in the overseas call charges.
Citing an example, it said that the rate of a call for US was $2.50 
per minute in 1992 whereas it was $1.20 per minute at present.
It further said that the telecom companies all over the world were 
correcting their tariffs by reducing long distance and 
international call charges and increasing local calls and fixed 

Sale up to $10,000 without travel documents: FAP
By Our Staff Reporter

KARACHI, June 28: Licensed money changers will start selling up to 
$10000 per person without demanding travel documents from the 
buyers from Wednesday (June 30).
The Forex Association of Pakistan which represents licensed money 
changers said here on Monday that those wanting to buy more than 
$10000 would have to fill out a State Bank proforma disclosing the 
purpose of the purchase.
"From June 30 money changers will not observe any fixed band of 
buying and selling prices," said FAP president Malik Bostan.
He told Dawn on telephone that FAP had started fixing prices for 
the open market after the rupee float on May 19 to contain the 
skyrocketing of the dollar. Besides fixing the daily prices, FAP 
had also restricted the sale of the dollars to $2000 per person.
"But that did not work. On the contrary people switched over to the 
black market and started buying greenbacks at any price," Malik 
Bostan said claiming that the decision to allow liberal sale of the 
dollars by licensed money changers would check this trend.
Replying to a question, he said since FAP imposed restrictions on 
the sale of dollars on its own it did not need to get a green 
signal from the SBP to liberalize the sale from June 30 again.
He said around $15 million dollars were sold in the open market on 
Monday implying that the supply of greenbacks had improved.
"We hope to bring in $20-$30 million more from Dubai within a day 
or two," he said claiming that with the liberal sale of dollars to 
be started by money changers the price of the dollar which shot up 
to Rs 56 in the black market would come down to Rs 54 or less.
FAP fixed Rs 53.45 and Rs 53.55 as buying and selling prices to be 
observed on Tuesday (June 29).
During the last four weeks or so when FAP prices were supposed to 
be operative in the open market almost all money changers openly 
violated the fixed price band and sold dollars at the rate of Rs 
55-56. "That is why it makes no difference to the public if the so-
called price band is going to be discontinued from June 30," 
remarked Naveed Iqbal of North Nazimabad who bought $350 from a 
money changer at Tariq Road at Rs 56 per dollar to pay for his 
tuition fee to a private university.
The money changers have decided to liberalize the sale of US 
dollars at a time when the greenback has been on the fall for the 
past few days in inter-bank market. Bankers said the dollar closed 
at Rs 51.30-51.40 in the market.

Zinni carried no specific proposal to Pakistan: US
By Shaheen Sehbai

WASHINGTON, June 28: General Anthony Zinni took no specific 
proposal to Pakistan regarding withdrawal of troops and 
infiltrators, the state department said on Monday.
The general has submitted his preliminary report to the Clinton 
The comments came following Indian media reports that Gen Zinni had 
proposed that a "safe passage" be provided to the fighters in 
Kargil so that they could withdraw into the Pakistani side of the 
A senior official said Gen Zinni had "productive talks" with the 
Pakistani leaders.
He categorically said there was no proposal to stop IMF assistance 
to Pakistan, as reported in the Washington Post.
The official said the US was in close contact with the Chinese 
leadership and Washington had urged Beijing to use its influence to 
resolve the disputes between Pakistan and India.
Asked to comment on the reported visit of a special envoy from 
Pakistan to India, the State Department officials said he could not 
confirm the visit but such contacts were welcome.
"The channels should remain open and the issues should be settled 
bilaterally between the two countries. The US is not a mediator and 
it would not mediate," the official said.

Pakistan to receive eight French Mirage jets next month

ISLAMABAD, June 28: Pakistan will take delivery of eight upgraded 
Mirage-V jets from France next month under a deal signed in 1996 
for 40 used aircraft, Pakistani officials and diplomatic sources 
said on Monday.

"The Mirages will be delivered by mid-July," a French embassy 
official said.
The deal was signed in 1996 but the delivery comes as Pakistan and 
India have been locked in border clashes in the disputed Kashmir 
region for the past two months, raising fears of an all-out war.

Officials said the deal for the French jets involved $120 million. 
Eight such aircraft were already delivered last year.
Under the "pre-paid" deal, French defence and mechanical 
engineering firm SAGEM was to purchase the jets from the French air 
force and elsewhere and modernise and refurbish them for delivery 
in two years.
French embassy sources said the remaining fleet of 24 jets was to 
be delivered to Pakistan by the end of this year. The fleet will be 
a "combination of both" Mirage-III and Mirage- V types, a Pakistan 
Air Force (PAF) official said.
"The multi-role planes have been equipped with the latest 
technology," he said adding the $120 million deal includes the cost 
of upgrading the aircraft.
Other sources said the contract envisaged the supply of 34 Mirage-V 
F type and six Mirage-III. The PAF fleet already has six Mirage-III 
and two Mirage-V planes, they said.
Pakistan entered into the deal with France after the United States 
cancelled delivery of 28 F-16 aircraft in a vain attempt to force 
Islamabad to abandon its nuclear programme.
Senior PAF officials have said the country needs to purchase the 
French built hi-tech Mirage 2000-5 to match India's air power. But 
poor cash resources have scuttled attempts to acquire modern 
aircraft from Russia and France.
PAF Chief Pervez Mehdi Qureshi last year said PAF needs to induct 
at least 20 state-of-the-art aircraft every year to counter the 
threat posed by India's growing air superiority.
Reports here said India was acquiring Russian SU-30 aircraft and an 
upgraded version of MiGs.
Pakistan's air force is outnumber by a ratio of 1:7 as Pakistan has 
just 32 multi-role F-16 planes in its inventory against India's 232 
high-tech aircraft, Qureshi added.
Pakistan recently decided to co-develop the Super-7 fighters with 
China described here a "time-tested friend."
Officials said the agreement on manufacturing the aircraft was 
likely to be finalised during Prime Minister Nawaz Sharif's current 
visit to China.
Sources said the Super-7 will be a multi-role, medium tech aircraft 
with Chinese airframe, Russian engines and systems from western 

Follow teachings of Holy Prophet, urge Tarar, Nawaz

ISLAMABAD, June 26: President Rafiq Tarar said on Saturday said the 
establishment of an ideal welfare democratic society is possible 
only when" we abide by the universal principles of Islam."

In a message issued here on the eve of Eid Milad-un-Nabi, the 
president said the ideological basis of Pakistan was Islam and "we 
can emerge as a developed and prosperous nation only after 
following the teachings of Islam."
He said:"The solution of our problems lies in Islamic principles 
and teachings of Holy Prophet."
He said:" 12th Rabi-ul-Awal is a landmark in our history as our 
Holy Prophet Muhammad (Peace be upon him) was born on this day."
President Tarar said the Holy Prophet (PBUH) preached brotherhood, 
humility and tolerance throughout his life as these were the pre-
requisite for the establishment of an ideal state.
He said:" We should be aware of our rights and duties and those of 
others as it is imperative for structuring a justice-based and 
crime-free society."
He said : The personality of Holy Prophet is the rich source of 
inspiration and knowledge for us.
He said the Holy Prophet always taught the lesson of humility and 
tolerance and forbade cruelty and dishonesty. His teachings were a 
permanent source of guidance for Muslims. He always urged Muslims 
to be humble and true lovers of mankind, the president said. "We 
should reiterate the pledge that neither we will be aggressive 
against anyone nor will let anyone commit aggression against us",he 
President Tarar said: "We can be successful in this world and 
hereafter only if we follow in the footsteps of the Holy Prophet."
He called upon the nation to pledge for the promotion of unity and 
integrity in its ranks.
NAWAZ SHARIF: Prime Minister Nawaz Sharif, in his message said the 
government was striving for the establishment of an Islamic welfare 
state, but there was opposition from some negative forces.
He said the negative forces became active whenever endeavours were 
made to create an Islamic society.
The prime minister said the best way to deal with such 
disruptionist forces was through" our mutual unity, sectarian 
harmony and brotherhood.
"We are brothers to one another and it is my faith that 
disruptionist forces cannot separate us," he said.
Mr Sharif said he was sure that by acting upon the teachings of the 
Holy Prophet (peace be upon him), the government would establish an 
Islamic system to solve present problems. This would become a 
bright example for the rest of the world.
In the context of problems, the prime minister recalled the initial 
five years of the Islamic state in Madina Munawwara when the Holy 
Prophet (PBUH) had faced heavy odds." Internal and external 
machinations, opposition, disruption and attacks on the border of 
the Islamic sate had disrupted law and order. But all this could 
not discourage the Holy Prophet(PBUH) and his companions in their 
determination and steadfastness. Thus, the image of the Islamic 
state as an independent state remained untainted.
He said:" Such circumstances were not allowed to hamper efforts for 
the creation of an Islamic state. An ambience of co-operation, 
philanthropy, sympathy, help and obedience was created in the 
collective life and healthy principles of a strong economy were 
evolved.The status of women was determined and the world was taught 
to respect the human rights. The power of the tyrants was 
eliminated. The oppressed were given a new courage and the standard 
of justice was established. He said the concept of Jihad in way of 
Allah became popular and " this is a requirement of an Islamic 
welfare state."
The prime minister said the government was striving to establish an 
Islamic state, he added.

" Every aspect of life of the Holy Prophet (PBUH) is a source of 
guidance for us. The Holy Prophet (PBUH) braved all opposition and 
negative forces for speaking the truth. The last of the Prophets 
was successful against the infinite number of infidels because he 
relied on Allah and faced them dauntlessly. This was how he lighted 
the ever-lasting beacon of Islam ,"he said.
Mr Sharif said:" With the sighting of Rabi-ul-awwal moon, the 
atmosphere echoes with "Darood-o- Salam," and the teachings of the 
Holy Prophet. This creates a renewed zeal among Muslims, and brings 
the blessings and bounties from Allah. The teachings of the Holy 
Prophet (PBUH) are a source of spiritual enlightenment to one's 
mind and heart. This can become the basis for the progress and 
slavation of the Muslim Ummah." -APP

NA passes Rs91.35bn supplementary budget
Bureau Report

ISLAMABAD, June 26: National Assembly on Saturday passed the 
supplementary budget of Rs91.35 billion which various ministries 
and divisions had spent over and above their budgetary allocations 
of 1998-99.
The supplementary grants approved by the PML legislators with a 
repeated yelling of yes included a grant of Rs200 million for the 
construction of a wrestling arena in Lahore and Rs450 million for 
the purchase of two bullet-proof Mercedes for the prime minister's 
Opposition members lambasted the ruling party, particularly the 
finance minister, for what they called its failure to even foresee 
the general expenditure of various ministries and the prime 
minister's office.
Finance Minister Ishaq Dar defended the supplementary grants, 
saying that Article 84 allowed supplementary grants and it was 
nothing unusual but a routine matter.
He maintained that out of a total Rs91.35 billion supplementary 
budget, general grants claimed Rs14.57 billion while technical 
grants Rs76.96 billion and added that actually it was 
reappropriation of funds from one head to the other.
Mr Dar had come with the figures of supplementary grants sought by 
the previous government.
ANP leader Asfandyar Wali recalled that during the PPP regime the 
PML members, most of whom were now in the federal cabinet, used to 
raise hue and cry over the supplementary budgets.
"You used to condemn it," he shouted from his seat in the far 
corner of the house when Mr Dar started defending the supplementary 
"Faces on the government benches change but behaviours remain the 
same," he remarked, recalling a speech of Prime Minister Nawaz 
Sharif in which he had said that nation could save billions if 
every Pakistani would just reduce one cup of tea from his normal 
The ANP leader noted that in the last year's budget the expenditure 
of the prime minister secretariat was Rs177.937 million more than 
its original allocation.

Earlier in his speech, Mr Wali had exhorted that it was the 
responsibility of the government to tell the nation as to who was 
responsible for the shortfall of Rs40 billion in revenue receipt 
and expenditure of Rs70 billion in excess of budgetary allocations.
"You earned Rs40 billion less and you spent Rs70 billion in excess 
of the budgetary estimates," he said, calling it a "big failure" of 
the government and the finance minister.
Deputy opposition leader Syed Khurshid Shah also resented over 
"I would not oppose the allocation of Rs200 million for the 
construction of wrestling arena in Lahore as it is a matter 
relating to the in-laws of the prime minister," he remarked.
Syed Naveed Qamar said that Rs91 billion, which the federal 
government had spent in excess of its budgetary estimates, was 
about one third of the total revenue receipts of the country.
Going through the supplementary grants, he noted that the PM 
secretariat was the "biggest culprit". The nation had been given 
sermons of austerity but the prime minister's own expenditure went 
MNAs Dr Fehmida Mirza, Pir Aftab Gilani, Waja Karim Dad, Sanaullah 
Baloch, Hassan Musana Alvi and Abdul Matin Khan also spoke on the 
They expressed reservations over a supplementary grant of Rs55 
million sought by the ministry for information and media 
They pointed out that last year the budget of information ministry 
had been increased by over 45 per cent and despite that increase it 
was still seeking supplementary grant.
The ministry, they said, had failed to project Pakistan's stand on 
Kashmir issue since it had been focusing on the vilification of the 
opposition leaders.

Central Excise Rules amended
By Our Correspondent

ISLAMABAD, July 1: Central Board of Revenue has announced to do 
away with the supervised clearance system for assessing central 
excise duty.

In this connection, it has notified to change the Central Excise 
Rules  1944, relating to supervised clearance system for collection 
of excise duty.
A notification No SRO 1 (11)-CEB/99 dated July 1, 1999, says: the 
following further amendment shall be made in Central Excise Rules, 
1944: In the aforesaid Rules, in rule 235, in sub-rule (1), serial 
numbers 40 and 48, the entries relating thereto shall be omitted.

'Two million people to slip below poverty line'
By Sabihuddin Ghausi

KARACHI, July 1: A summary assessment of what the nuclear blasts in 
Pakistan and the subsequent economic sanctions cost the people of 

this country and even after the apparent bail-out by IMF and other 
multilateral agencies through enhanced external assistance and debt 
rescheduling presents a very bleak economic and social scenario 
which has already emerged and heading for further deterioration in 
the coming years.
It tells reduction in employment opportunities by over half a 
million annually in the next five years and almost two million more 
people could fall below the poverty line with number rising to five 
million by 2002-2003.
Already, in the first year after the blast in 1998-99, about 80,000 
people including 16,000 educated were deprived of the employment. 
This number is predicted to rise to 740,000 in 2002-2003 and would 
include 200,000 educated in the fifth year of 2002-2003.
The slowdown in the economy reduced the consumption expenditure in 
the country by Rs17 billion last fiscal year. It will further go 
down by Rs43 billion after four years.
"Rising food prices and lower incomes, along with contraction in 
preventive health services such as immunization programmes, will 
exacerbate the problem of high proportion (over 40 per cent) of 
malnourished children in Pakistan" the document warns while 
pointing out that almost 400,000 (four lakh) more children could be 
adversely affected in terms of their nutritional status.
Simultaneously, the lower income growth and a tight labour market 
will diminish the prospects for a rapid improvement in the status 
of women.
Specific mention has been made on the move to market-based exchange 
system and the resultant depreciation in the exchange rate, 
broadening of the general sales tax and its increased rate, rise in 
power tariff, cut in development expenditure, withdrawal of 
subsidies are bound to push up the prices of basic goods, foods and 
services, escalate the cost of debt servicing, broaden the fiscal 
deficit and hence expansion in money supply and fuelling inflation, 
lower the private investment and hence a decline in employment 
opportunities and drop in incomes. Compliance of all these 
conditionalities will enhance the poverty level. However the report 
is equally candid on the positive aspect of these conditionalities.
Software exports target raised to $1bn by 2005

KARACHI, July 1: Pakistan has targeted to raise its software 
exports to dollars one billion mark by the year 2005 from the 
present $30m, said deputy chairman Planning Commission, Ahsan 
Addressing a seminar on Electronic Business by Intel Corporation 
Wednesday, he said the government intends to provide 0.3 million 
Internet connections in the next three years.
He said Pakistan has a rich potential but resource gap crippled the 
progress in information technology. 
In order to reduce the resource gap, the government has planned to 
open new centres of excellence for information technology to bridge 
the gap and promote human resource development.

He called upon the private sector to come forward and take the lead 
in the development of information technology.-APP

Adamjee family retains insurance co management
By Dilawar Hussain

KARACHI, June 30: The Adamjee family managed to retain firm control 
over their Rs 3.3 billion insurance company, when seven directors 
nominated by the group, were elected to the nine- member board.
The elections to the Adamjee Insurance Company board of directors 
were held at the company's annual general meeting on June 30. All 
the month-long sound and fury of a possible hostile take-over of 
the largest insurance company of Pakistan, died down with a whimper 
as I.Puri Securities (Pvt) Ltd., managed to bag only a single seat. 
The securities firm was said to be eying seven. The ninth seat was 
captured by HBL.
Contrary to expectations, proceedings at the AGM turned out to be 
quiet and peaceful. Shareholders participated in large numbers and 
at least four past presidents of the Karachi Stock Exchange 
(Jahangir Siddiqui, Amin Issa Tai, Ferozuddin A.Cassim, Arif Habib) 
and the sitting chairman, Mohammad Yasin Lakhani, were conspicuous 
by their presence.
Earlier, the Adamjee family had filed eleven nominations, but 
withdrew four; all of the seven in the run up to the elections were 
They included Mohammed Hanif Adamjee; Abdul Hamid Adamjee; Abdul 
Razzak Adamjee; Mohammed Choudhury; Izaz Ahmed Rafiqui; Akhtar 
K.Alavi and Iqbal Adamjee.
Of the two candidates who stood for HBL, Mian Asif Saeed was 
elected. Saad M.Ali, nominee of the I.Puri Securities (Pvt) Ltd. 
filled the ninth place on the Adamjee Insurance board.
The successful candidates secured on average 30 million votes, 
Before the shareholders were called to vote, the accounts for the 
year ended Dec 31, 1998 came up for discussion.
Chairman Mohamed Hanif Adamjee pointed out that the company had 
made after tax profit of Rs 196.4 million during the year.
He did not agree with a shareholder that the company was losing 
money on the core insurance activity and that it was deriving all 
of the profit from investments.
He said that the underwriting profit for 1998 had improved to Rs 
90.9 million, from a year ago profit at Rs 87.8 million. But he did 
concede that in line with the general trend in the industry, motor 
business was contributing major losses; motor revenue account 
posted loss of Rs 95.2 million for the latest year, up from Rs 31.6 
million in 1997.
The company MD, Mohammed Choudhury said it was unfair to criticize 
the company for a lean year.
All of the reserves and investments that the company had built up 
over the years, he argued, had been made from the insurance 
business, which was still showing steady growth.
He firmly brushed aside a shareholders' demand that the accounts be 
released and AGM held in less than six months' time. "For an 

insurance company- and of the size of Adamjee- it is not possible 
to furnish audited accounts in a shorter period", he said.

Airlines to expand operations
By Our Staff Reporter

LAHORE, June 30: Three private airlines, including Shaheen Air, 
plan to expand their operations from Lahore on both domestic and 
Gulf sectors in the near future, their officials told Dawn on 
An AeroAsia official said the airline will start its flights to 
Mashhad from the Punjab capital some time this month. The company 
also plans to start its flights to Kuwait and Quetta. The official 
said the airline is acquiring a 320-seater Airbus 320 to commence 
new flights. Currently the airline operates three Boeing 737 and 
five BAC 111 aircraft.
Bhoja Air is also in the final stages of securing a Boeing 737 
aircraft by the end of July to launch new flights to Doha and Abu 
Dhabi. Its present fleet comprises two YAK42B Lithuanian planes. 
Shaheen also plans to acquire two Boeing 737 aircraft as well as an 
Airbus 320 to add to its three TO154 aircraft fleet by the end of 
this year to expand its domestic and Gulf operations from Lahore.

2.4 million unemployed this year
By Our Staff Reporter

KARACHI, June 30: The countrywide unemployment is estimated at 2.4 
million in 1999 compared to 2.3 million in 1998, official figures 
Labour surveys indicate that the growing unemployment rate is 6.1% 
in 1999. The rate was 4.73% in '93, 4.84% in '94 and 5.37% in '95 
and '96 which has remained at 6.1% from 1997 to 1999.

According to Pakistan Economic Survey, unemployment is defined as 
all persons of ten years and above who during the period under 
reference were: without work i.e. were not paid employment or self-
employed, currently available for work i.e. were available for paid 
employment or self employment and seeking work i.e. had taken 
specific steps in a specified period to seek paid employment or 
self employment. Official figures show the rate is more in urban 
areas than the rural areas. According to labour surveys, the total 
number of employed labour force in '99 is estimated at 36.2m as 
against 35.4m in '98.
The total number of employed persons in urban areas has slightly 
increased to 1.8m in '99 from 11.4m, a year before. Rural 
employment increased to 24.4m in '99 from 24 million in 1998. 
Agriculture is the largest source of employment with 44.1% share 
followed by finance and social services 15.6%, trade 14.6%, 
manufacturing and mining 11.2%.

$300m IMF  tranche to be offered this month
By Ihtashamul Haque

ISLAMABAD, June 30: The International Monetary Fund (IMF) will 
offer the next tranche of $300 million to Pakistan by July this 
Sources in the multilateral agencies told Dawn here on Wednesday 
that an IMF review mission was arriving here in early July to 
finalize the arrangements for offering the next tranche, out of 
$1.6 billion Extended Structural Adjustment facility (ESAF) and 
Extended Fund Facility (EFF).
"The fund authorities are expected to disburse 200 million Special 
Drawing Rights (SDRs) by next month which are roughly equivalent to 
$300 million", disclosed a source in the local multilateral agency.
When contacted he said, IMF has no plan whatsoever to withhold the 
next tranche as was reported in the section of the international 
press, especially in the Washington Post. "And we do not know from 
where this figure of $100 million came which according to the Post 
was being withheld", he said. The IMF, he added, has informed the 
Pakistani authorities that future funding from the ESAF/EFF 
programme was very much on "schedule" and that it was not being 
However, the government has been advised to improve the stock 
market position by removing the element of unnecessary speculations 
by the vested interest. Also authorities were told to regulate the 
capital market by further liberalising the corporate laws and 
providing new modes of mobilization of resources in the corporate 
No decision yet on fund sharing by provinces
By Intikhab Amir

PESHAWAR, June 29: Centre and provincial governments have yet to 
finalize modalities with regards to the collection of taxes on 
services and their disbursement to the four federating units from 
the next financial year, official sources told Dawn here on 
Whereas, the NWFP wants the tax proceeds to be distributed on 
population basis, the other view is that provinces should get 
actual collection made within their respective territories.
"NWFP's stand is that distribution of funds that would be raised as 
taxes on services from across the country should take place in 
accordance with the four federating units' population," said the 
official sources.
NWFP's stand is in contrast to other proposal which asks for the 
financial disbursements in line with the amount of collections made 
from any province under any specific head, according to sources.
The NWFP government, said the sources, viewed the other proposal 
harmful for it making it to substantially suffer financially.
"There are certain major services on which tax is applicable 
throughout the country but the amount collected is deposited to the 
central account of the department concerned like WAPDA in whose 
case the amount collected goes to its Lahore account whereas in the 
case of gas the receipt is made against their main Islamabad 
account," said the official.
The NWFP government, said the sources, was of the view that the 
amount collected as taxes on services should be distributed (by the 
Centre) among the four provinces in accordance with their 
respective share in the over all population of the country.
With regards to identification of services which would be taxed, 
the officials concerned of the provincial government said that as 
per IPCC's decision, the collections already being recorded on 
account of federal excise on services would be distributed among 
the four provinces, for which formula had yet to be devised, said 
the sources.
CBR amends import duty notifications
By Our Correspondent

ISLAMABAD, June 29: Central Board of Revenue has made changes in 
its previous notifications relating to collection of import duty 
and central excise duty on a number of items, in accordance with 
the federal budget 1999-2000.
A Central Excise SRO 667 (I)/99, dated June 12, 1999, has changed 
the previous procedures laid down in SRO 456 (I)/96 of June 13, 
1996, as follows: In the aforesaid notification, for heading No 
2710.0099 and entries relating in columns (2) and (3) the following 
shall be substituted: transformer oil:- ten per cent of the retail 
price of seven rupees and fifteen paisa per litre, whichever is 
higher; other:- 30 per cent ad val.

'Business climate from bad to worse'
By Our Staff Reporter

LAHORE, June 28: The government's tussle with Independent Power 
Producers (IPPs) and pharmaceutical companies is turning investment 
climate in Pakistan from bad to worse, US ambassador William Milam 
said in a meeting with Lahore Chamber of Commerce and Industry 
(LCCI) president Pervez Hanif on Monday.
Milam said these issues have caused a severe setback to the direct 
investment flow into the country. He also cited the law and order 
situation in Karachi and sectarian killings in other parts as major 
hurdles in attracting foreign investors.
He said some of the negatives of the investment climate could be 
overcome if comparative advantages of the Punjab are highlighted 
properly. However, he added, under the new globalization regime no 
country can be automatic choice for the investment without 
accountability - monitoring by larger companies who gave credit 
Milam urged the businessmen to put pressure on the government to 
quickly expedite IPP and other issues ensuring free flow of foreign 

KSE index crosses 1,100-point barrier

By Our Staff Reporter

KARACHI, July 2: Stocks On Friday staged a snap rally giving a 
pleasant weekend surprise to even the most well-informed analysts 
and they just watched the index breaching its psychological barrier 
of 1,100 point with some of the buystops remaining unsatisfied till 
the closing bell.
    'Peace on the borders might not be around but investors made it 
look so after indulging in massive speculative buying in PTCL, Hub-
Power, PSO and Fauji Fertiliser at their current lows', said an 
analyst adding 'rumours of some understanding to defuse tension in 
Kashmir after a friendly diplomatic offensive appears to be the 
chief inspiring factor behind the snap rally'.
The buying euphoria though was selective but reminiscent of boom 
conditions as institutional traders appear to be a bit crazy to 
grab all the floating stock of some of the pivotals and the 
consequent price flare-up massive institutional buying aided 
largely by peace feelers from across the border as a result of 
secret diplomacy.
'The fighting might not end abruptly but the warring parties are 
moving to that end thanks to friendly diplomatic offensive', said a 
leading stock analyst.
The KSE 100-share index jumped by 38.72 points of 3.56% and 
breached the psychological barrier of 1,100 points just in one go 
and was last quoted at 1,104.83 as compared to 1,066.11 a day 
'The market seems to have taken a pause as both Pakistan and India 
claim success on diplomatic and military fronts over the ongoing 
fighting in] Kashmir', said an analyst.
But the chief stabilizing factor behind the current trading pattern 
appears to be unconfirmed reports of 'positive contacts 'between 
the highups of the both to ease the situation, they added.
'Whether or not the secret diplomacy works is not clear but the 
intensity of fighting along the Line of Control points to an 
escalation', said a member of the KSE and added 'investors are now 
learning to play in war like conditions and that is good for the 
Losses on the other hand were fractional barring Bank Al-Habib, 
Askari Insurance and Nestle MilkPak, which suffered fall ranging 
from one rupee to Rs5.00.
Back to the top
Weavers of lies
Ardeshir Cowasjee

THE profession of weavers of facts into fiction, and fiction into 
facts, gained prominence in this country in the good old days of 
Ayub Khan, back in the '60s.
To emphasize their super-loyalty to their masters they adopted 
stereotype measures such as the nationalization of newspapers, 
promulgation of oppressive ordinances, imposition of black laws, 
planting of informers in press offices, retaining columnists and 
letters-to-the-editor-writers (the count today is 80), purchasing 
journalists (commonly known as 'lifafas'), purchasing editors and 

thus control of a publication. The unpurchasable are harassed and 
persecuted in various ways, one favourite being the filing of false 
cases against them. In Punjab the current saying is 'Kharido nahi 
to kaso' (if you cannot buy, beat). Recommended reading for those 
interested is Zamir Niazi's trilogy : 'The Press in Chains,' 'The 
Press Under Siege,' 'The Web of Censorship.' What he has recorded 
has never been contradicted.
The maximum harm done by our weavers of lies is the bolstering of 
our leaders' euphoria by convincing them that they are the be-all 
and end-all, the state embodied. They encourage these megalomaniacs 
to destroy, to rob, even to maim and murder.
Our roll of honour of notable weavers includes, but is not limited 
to, Altaf Gauhar (Ayub), Maulana Kausar Niazi and Nasim Ahmed 
(Bhutto) Lieutenant-General Mujibur Rahman (Zia), Husain Haqqani 
(Nawaz I and Benazir II), and now Mushahid Hussain.
Altaf, a civil servant, in the service of Ayub Khan, dealt with his 
master's challenger, Zulfikar Ali Bhutto, so nastily that one of 
the first things that Bhutto did when he managed to grab power was 
to arrest Altaf on the charge of possessing an old copy of 
'Playboy,' a forged passport, and half a bottle of whisky. He was 
unduly harassed for months on end.
The Maulana was used by Bhutto to appease and pacify his brethren, 
the maulanas and maulvis. He bought and sold. He was most useful 
when the Arab Sheikhs visited. He made their stays comfortable, 
provided them with the recreation they sought, and conversed with 
them in their own language. Maulana Sahib was a relatively poor man 
when he joined Zulfikar, but when he left office he had managed to 
amass a small fortune.
Nasim Ahmed was a proficient flatterer, good at buttering up those 
that needed verbal buttering. He also constantly sought 
approbation. On one of my Islamabad visits, he invited me to a 
party he hosted in honour of local, foreign, and visiting 
journalists. Taking me aside, he asked how I thought he was doing, 
how I rated his performance. Keeping a straight face, I told him he 
was doing brilliantly. Happy to hear it, he beckoned some of those 
around us to join us. Come and listen to this, he told them. This 
man is no flatterer, hear what he has to say about me. And he 
handed the floor to me.
Brilliant, yes, I said to Nasim. You have welded the nation into 
one No one, just no one, believes one word uttered on PTV or on 
Radio Pakistan, or printed in one of the government newspapers, or 
uttered in public by Bhutto. Infuriated, he addressed me in Urdu. I 
had no business to say what I had said in the presence of foreign 
journalists. It was traitorous. I had ridiculed the state. Soon 
after this incident I was arrested without any charge, sent to jail 
for 72 days, and released still not knowing why I had been 
arrested. There was some speculation by men who had been at Nasim's 
party that I had to be taught a lesson for my 'traitorous' 
Mujibur Rahman was a good harasser of publications that displeased 
his master Zia. 'Musawat,' the PPP mouthpiece, was his particular 

target. He had 140 newspaper men arrested and jailed, including 
Nisar Osmani and Mazhar Ali Khan. He also encouraged Zia to change 
the penal code, making the writing of truth an offence.
After Zia's heavenly flight, democracy was reborn in Pakistan and 
we had Tweedledum and Tweedledee, Benazir Bhutto and Nawaz Sharif 
alternating at the top, both adding to our woes. During Nawaz I and 
Benazir II the most prominent weaver and damage-doer was Husain 
Haqqani. From 1988 to 1990, Husain was Punjab Chief Minister Nawaz 
Sharif's special assistant, becoming his press assistant when Nawaz 
became prime minister in 1990, until in 1992 he was sent off to Sri 
Lanka as high commissioner. As soon as Nawaz was forced to step 
down, Husain joined Benazir's camp and from 1993 to 1994 was 
Secretary to the ministry of information and broadcasting, until 
Benazir also shunted him out to head the House Building Finance 
Husain was born and schooled in Karachi, went to Karachi University 
where he was a Jamaat student leader. He then became a professional 
journalist and for some years was with the 'Far Eastern Economic 
Review,' both in Hong Kong and here in Pakistan, until he was 
picked up by Nawaz. After his experiences with both 'leaders' he 
claims he is a chastened man, who has learnt a lot and who now 
recognizes both as being marginally as bad as each other. He writes 
columns for various newspapers, both in English and in Urdu and all 
largely critical of this government. He has formed his own 
political party, the Urban Democratic Front. He considers himself 
capable, with the necessary help, of climbing up the greasy pole 
and leading the 140 millions to glory.
Brittle and paranoiac as it is, this government for some mad reason 
considers Haqqani to be a threat, possibly because it thinks he has 
armed himself with copies of compromising documents picked up 
during his days of officialdom. He is now tied to the rack. The 
government has not denied that its dirty-tricks brigade kidnapped 
him in the middle of the night, had him beaten up, kept in solitary 
confinement, initially incommunicado, but now under judicial 
custody in a safe house near the Rawal Lake. His cuts and bruises 
have been brought on record, his bail applications have been 
rejected. Ostensibly he has been charged with corruption, 
embezzlement, and the squandering of government wealth. Could he 
even remotely have squandered one-hundreth of what has been 
squandered by Benazir or Nawaz?
Governments in our country are known to be vicious and Husain can 
expect little help from our 'independent judiciary,' many members 
of which are ignorant of the value and importance of liberty, of 
the fact that a writ of habeas corpus cannot be rejected, and that 
every man is due his rights. If there is an understanding judge 
around, who has suo motu powers, he should help, give him bail and 
get him out.
Mushahid Hussain claims to be a profoundly educated man, but his 
association with Nawaz Sharif seems to have washed away all his 
qualifications. He is responsible for Haqqani's predicament and for 

all the troubles faced by Najam Sethi. The government has also not 
denied that Sethi was abducted in the middle of the night by its 
dirty-tricks men, beaten up and kept in solitary confinement. He at 
least has been released, without any charges having been made 
against him as none could be proved. Now free, he has been banned 
from leaving the country and is facing 28 income tax cases. The 
systematic income-tax-cases harassment is a hangover from the 
Bhutto days. Sethi would do well to refer to the White Papers 
compiled by Burney, 'Misuse of the Instruments of State Power' and 
'Misuse of the Media.' With this vicious government, Najam may 
suffer. All we can do is to stand by him and help as much as we 
One of the worst mistakes cocky Mushahid has made is to have sought 
to stand trial in the BBC televized court of 'Hard Talk'. He cut a 
sorry figure in front of his griller, Tim Sebastian, and managed to 
successfully disgrace our nation. We have him on tape, and this is 
one tape he will never be able to claim is doctored.
In the service of his master, he makes a pretence of believing what 
the world does not believe about the present Kashmir situation. His 
performance may have made us lose whatever residual sympathy we had 
from a few quarters in the world.  Mushahid further disgraced our 
judiciary with the lies he told about the storming of the Supreme 
Court. He told the world that the Chief Justice of Pakistan, Sajjad 
Ali Shah, was not sacked by his government but by his fellow 
judges. He omitted to say what the government's role was in this 
Having done such a tremendous job on 'Hard Talk,' we can only hope 
and expect that in appreciation of his service to the nation, his 
tool, the valiant PTV, will show to the people how well its wielder 

What is the political leadership up to?
Ayaz Amir

OF the situation arising from the flare-up in northern Kashmir 
nothing is more dismaying, nay mind-boggling, than the smug 
attitude of the political leadership. While the army is in a state 
of near-war, for the political leadership it is business as usual: 
cricket on Saturday afternoons, politicking in Sindh, the unveiling 
of more gimmicks, like the housing scheme, on the home front.
India has conducted itself far better in this emergency. 
Government, opposition and the armed forces are one about removing 
the 'intrusion' in the Kargil sector. There has been criticism over 
the intelligence failure in detecting the freedom fighters; there 
are no differences over the objective of flushing them out from 
their positions. Indian diplomacy has been more effective and 
quicker off the mark. Indian television does not insult the 
intelligence of its viewers the way PTV does.
As for public opinion, it is aflame in India and all for teaching 
Pakistan a lesson. In Pakistan by contrast there is apathy at the 
popular level simply because the government, apart from the tripe 

on PTV, has not taken the trouble to mobilize the people. Every 
Indian politician worth his or her salt has visited Kashmir and 
gone near the Line of Control. It took Nawaz Sharif over a month to 
make a similar visit to forward locations on our side of the 
border. Farooq Leghari, to his credit, has also been there. But 
which other politician of note?
It might have been thought that for an elected leader, heavy 
mandate and all, this was the one supreme occasion to speak to the 
people, if only to take them into confidence. What have we seen 
instead? Ghaus Ali Shah is to be the saviour of Sindh, the Ehtesab 
Bureau is to investigate the affairs of the cricket team (or so at 
least a bemused nation has been informed), there is endless 
propaganda about the housing revolution which is set to take the 
country by storm, after the news headlines on PTV there is the same 
footage every evening which, to the strains of an Iqbal song, tells 
us of the prime minister's abiding love for the poor. This has been 
the political leadership's way of preparing the nation mentally for 
the emergency it faces.
To be sure, PTV has been the one great instrument of governmental 
direction. But, as always, so shallow and pathetic has been the 
drivel from it that even standing its higher bosses against a wall 
is inadequate punishment for their appalling ineffectiveness. The 
ISPR and its spokesman, it must be conceded, have done a better job 
of putting the national viewpoint across but then against 
collective disarray and the rooted idiocy of a fossilized 
propaganda machine, what can a slim institution do?
How convenient the labels 'freedom fighters' or 'Kashmiri 
Mujahideen'. They enable us and the political leadership to believe 
that Kargil is a distant affair and that since, in any case, we 
cannot afford to proclaim our involvement, it is strategy of the 
highest order not to get too emotional about this affair. Nawaz 
Sharif certainly seems cool and collected about it. No let-up on 
the dazzling shots to the boundary at the Bagh-I-Jinnah. No beads 
of sweat or marks of tension on a forehead known to be receptive to 
the first signs of stress. Is Kargil indeed on a different planet?
This is not to say there is no enthusiasm at home for the success 
of our arms in Kashmir. Threatening India's life-line to Leh, 
Siachen and Ladakh has been the dream of Pakistan's fighting 
commanders. If it has finally happened there is bound to be 
excitement and even a heady feeling induced by the predicament in 
which the Indian army has been placed. But tragically for Pakistan 
this feeling is confined to two pockets: the rank and file of the 
army, which think that a major tactical victory has been won, and 
the Mujahideen groups which have been involved in the Kashmir 
uprising since 1989.
This public aloofness is intriguing. Even during the disaster of 
1971, when retrieving the last shreds of national pride from the 
maelstrom of humiliation had become a problem, there was greater 
popular backing for the war effort. A disaster there was but the 
nation as a whole (minus the people of East Pakistan of course) was 

in it together. This time - when through no small expenditure of 
blood and resources a limited military advantage of some strategic 
significance has been gained - the nation is apathetic or it is 
keeping its enthusiasm well-concealed. Our soldiers are on their 
Who is to blame for this state of affairs? Did the political 
leadership not know of the Kargil operation? Did it not give its 
approval to it? While it is entirely conceivable, given the Caesars 
that we have, that all the implications and ramifications of this 
operation may not have fully struck the prime minister (or, for 
that matter, the military command which appears to have confused 
tactics and grand strategy) whose fault is that? Why should 
Pakistan's fighting men have to carry - as much in 1999 as in 1971 
and 1965 - the burden of leadership failure?
Since the policy was jointly approved, what accounts for the 
confusing signals that are emanating from Islamabad? While fighting 
rages in the north, peace overtures are being made which appear not 
to take into account the successes gained on the battlefield. 
Former foreign secretary Niaz Naik who went as Nawaz Sharif's 
emissary to India has hinted at the possibility of a deal and said 
senior military officials may meet soon to prepare a schedule for 
withdrawing the 'freedom fighters' from the positions they occupy.
If this is indeed the case, what is Pakistan demanding in return? 
Will India forswear bilateralism and agree to discussions on the 
future of Kashmir involving the UN? If not, what will Pakistan get 
for the valour of its soldiers? If it is seen that it does not get 
a great deal, that an agreement for withdrawal is being brokered 
under American pressure, how will our soldiers and officers react? 
Will they not have reason to feel betrayed by their political and 
military leadership?
There is little point in saying at this stage that the Kargil 
operation was flawed. That it was ill-conceived, with its political 
objectives not clearly thought through, seems to be pretty clear. 
But then the responsibility for this rests on the shoulders of the 
political and military leadership. In any event, we ventured forth 
and along the way precious lives have been lost. These sacrifices 
should not be in vain.
It is important therefore for Pakistan to salvage something from 
the Kargil situation. A verbal concession on Kashmir if no more, an 
avowal by India to discuss the problem more meaningfully than it 
has hitherto done, is the minimum that Pakistan should demand of 
the international community if the Kargil and Drass peaks have to 
be evacuated. Or else a profound sense of disenchantment will take 
hold in the armed forces.
Not the least of the ironies of the Kargil venture is that going 
ahead with it is as full of hazard as winding it down abruptly. If 
the first course can invite a wider conflict, a sudden withdrawal 
will demoralize the army, set back the Kashmiri freedom struggle by 
many years and raise the sanctity of the Line of Control which is 
anathema for Pakistan because it makes nonsense of its stand on the 

Kashmir dispute. And there will be no repeating the Kargil venture 
because the Indian army henceforth will be on its guard. In other 
words, this will have been a glorious feat of arms with nothing to 
show for the valour of our soldiers.
So Pakistan needs to keep its nerve if it is not to be panicked 
into a bad agreement. This requires forceful and steady leadership. 
Herein lies the rub for if we have not seen much of leadership 
during the last two months, by what magic wand will we suddenly get 
it at this juncture?

The real cost of Kashmir
Irfan Husain

UNTIL the Internet entered my life a couple of years ago, I was 
spared the news of fresh disasters at home when I was abroad. For a 
few all-too-brief weeks, I was virtually cut off from the perpetual 
doom and gloom in Pakistan as I met friends, saw good films and 
plays and ate at new restaurants. 
But the advent of the wired world is not without a price: now, I 
check the front page of the Internet edition of this newspaper 
every day. My excuse is that I need to stay in touch with 
developments to be able to comment on them. 
In reality, I suspect the readers have no desire to read yet more 
analysis of the constantly worsening situation, which is not unlike 
taking the blood pressure of a man on the way to the ground, after 
he has jumped off the top of a skyscraper. 
However, there is something hypnotic about the steady escalation in 
Kashmir: both on the peaks of Kargil, and in the Indian and 
Pakistani media, the drums of war are sounding louder and louder. 
Mercifully, their echo in the western media is very faint. The 
comings and goings of the American envoy to the region rates 
perhaps a small paragraph on page 8 in Britain, while the 
hysterical rhetoric of South Asian leaders is mercifully ignored 
totally. The news here has predictably been dominated by Kosovo, 
with Wimbledon being the second lead story. So much for the efforts 
of Indian and Pakistani diplomats to put their respective 
viewpoints across.
The truth of the matter is that the rest of the world is heartily 
sick and tired of Kashmir. People here simply cannot understand why 
India and Pakistan have been unable to sort out the problem in over 
half a century. Even well-informed Britons look blank when one 
recites the well-worn history of the conflict: "Yes, but that was 
years ago. Why can't you people get on with life, reduce defence 
expenditure and address the huge backlog of unmet needs in your 
respective governments?"
Easier said than done, alas. As is true in other countries, defence 
budgets and establishments acquire a life of their own, and like 
all life-forms, they multiply and proliferate, seeking a 
justification for more resources year in and year out. We cite 
Indian arrogance, while they refer to our aggressiveness. Whatever 
the cause, the result is that both military establishments continue 
to burden us and divert scarce human and material capital from the 
pressing needs of development. 
And whenever politicians make an effort to break the deadlock, a 
security threat is conjured up to ensure that there is no progress 
on the peace front. The Lahore Declaration is now a dim memory, and 
all the optimistic words written and spoken on that occasion have 
been cancelled out by artillery fire across the Line of Control. 
Once again, the hate-mongers have triumphed and the tiny but vocal 
peace movement on both sides has been silenced by the shrill 
jingoism emanating from both capitals.
In this escalating war of words and cannon fire, the real victims 
are often lost sight of by the two governments, excepting as fodder 
for official propaganda. A recent headline in this newspaper caught 
my eye: ten Hindu kiln workers had been shot dead as they slept by 
masked men. How does anybody in his right mind imagine such 
barbarism will advance his cause? Similarly, Indian security forces 
have done more to alienate Kashmiris from Indian rule by their 
vicious repression than years of corrupt and inefficient government 
from New Delhi. 
For Pakistan, the Kargil incident may have been a brief military 
triumph, but it has been a major diplomatic disaster. The weak 
support we enjoyed from a few die-hard friends has been tested to 
breaking point. China, for example, has urged us to enter into a 
dialogue with India to defuse the situation. This is a far cry from 
their earlier steadfast support for our position that the 1948 UN 
resolutions be honoured. 
Without going into who started it, the fact remains that virtually 
the whole world has asked us to put a stop to the fighting, 
implicitly blaming us for initiating and controlling the outbreak 
of warfare. Frankly, whatever the official version, it does strain 
credulity to suggest that Kashmiri freedom fighters have the 
military skills, equipment and logistical support to conduct this 
campaign entirely on their own. While respecting their courage, any 
intelligent observer is forced to conclude that it took more than a 
wink and a nudge from our government to put them where they are and 
sustain them all these weeks.
Granted, this sharp escalation has put Kashmir on the international 
agenda, albeit very low down. And let us remember that it is only 
there because the world is concerned that the irresponsible and 
immature leadership in both countries is capable of resorting to 
nuclear weapons in case the conflict escalates still further. So to 
get the international community's ear, we are engaged in a kind of 
dangerous nuclear bluff that is putting millions at risk. 
Meanwhile, much of the rest of the world gets on with real life 
while we stand frozen in a time warp with our single point agenda 
of Kashmir. 
Apart from the direct financial price we have paid for our 
unswerving (some will say blind) commitment to Kashmir, internal 
political development has been warped as well. Because of our 
perpetual state of confrontation with India, we have developed a 
siege mentality that has blocked rational and legitimate debate and 
discourse on a wide range of topics. The "crime" for which Najam 

Sethi continues to be persecuted even after his release from 
illegal incarceration is that he had the courage to voice his 
concerns for the state of the Pakistani nation. Most Pakistani 
writers and thinkers are now so cowed  by the current environment 
of repression that they no longer analyse the causes of our steep 
One problem with what passes for our decision-making process is 
that the establishment views the world through the blinkers of 
Kashmir. This tunnel vision has blinded them to pressing needs in 
other sectors. As a result, Pakistan languishes near the bottom (or 
at 138 to be precise) of the Human Development Index. It is no 
consolation that India is right there to keep us company. Our stock 
markets are in the doldrums, and in the last three years, hardly a 
single new company has been floated. 
Industry is stagnant, and the financial sector is still reeling 
from scores of billions of bad debts and the continuing fallout 
from the decision to freeze foreign exchange accounts last year.
Against this dismal backdrop, you would think our leaders would 
have their hands full instead of embarking on rash adventures on 
our borders. On the other hand, knowing their capabilities, perhaps 
they have done so because they know their limitations and are 
trying to divert our attention from our real problems.

Majid going to office but not as CEO
By Our Sports Reporter

KARACHI, July 1: The Pakistan Cricket Board (PCB) is virtually 
working without a chief executive after Majid Khan admitted that he 
was not attending the office in that capacity.
"Yes, I am going to the office but not as chief executive of the 
PCB," he remarked when asked what was the official stand of the PCB 
on cricketing relations with India.
"My tenure expired on May 22 and until I am given future 
instructions by President Rafique Tarrar, I will continue to go to 
the office but not as chief executive," he said from Lahore.
According to the constitution of the PCB, President of Pakistan, in 
his capacity as Patron of the PCB, is empowered to appoint the 
chief executive besides the chairman and treasurer.
Majid was recently in England for the World Cup but didn't attend 
the International Cricket Council (ICC) meeting that was held 
between June 22 and 24.
Majid's salary and other benefits have been stopped by the other 
officials of the cricket board as the former captain waits for 
future instructions from the presidency.
"What is the position of the PCB, whether the Sahara Cup will be 
held? I think these are the questions you should ask the secretary 
of the PCB if the chairman is not available," he added.
The Sahara Cup which is to be organized and participated by 
Pakistan and India until 2001, is in jeopardy following Indian 

Board of Control for Cricket (BCCI) president Raj Singh Dungarpur's 
statement that cricket can't remain in isolation.
"The sentiments of the people have to be respected," he was quoted 
as saying.
Pakistan's former stalwarts have criticised Dungarpur but the 
policy decision of the PCB will only be known after Khalid Mahmood 
returns from England. He is expected sometime next week.

No communication on EB investigation: PCB Chairman

ISLAMABAD, June 30: The Pakistan Cricket Board has not received any 
official communication about Ehtesab Bureau's reported 
investigation into the national team's conduct in the recent World 
Cup. This was stated by PCB Chairman Khalid Mehmood in an interview 
to BBC World "Asia File" programme, telecast on Wednesday.

Admitting that competent authority has the power to hold 
investigation, the PCB Chairman said he was not "really sure" 
whether such an assignment has been given to Ehtesab Bureau.
To a question, Khalid Mehmood said he had spoken to team management 
and based on these reports, he denied that the matches were thrown 
away or that some players had night out before the final against 
He said a Judicial Commission was already holding probe into match-
fixing allegations "and I don't think any other agency is more 
competent to do so".
He also said the players, who had been desposed to make way for 
Wasim Akram as skipper "had their ethnic and regional support"

The following was the BBC tv question-answer session with Chairman 
Q: Why do you think these recriminations have been so savage?.
A: Well, based on historical evidence one can say that some of our 
people specialise in self destruction. A matter which was purely 
sporting has been completely politicised and there is a background 
to it.
During the time that Wasim Akram, our current captain, was not 
Pakistan captain, there were other players who were given a chance 
to lead the team. And they did it with partial success. But as soon 
as I took over as the Chairman of Pakistan Cricket Board, it was in 
my mind that Wasim Akram, because of his track record, had the 
ability to lead the team out of all kinds of trouble. And therefore 
I encouraged him to get into the act. I first promoted him as a 
player and later when the opportunity arose, we as members of the 
Cricket Board and with the council support appointed him Pakistan 
And naturally the players who had been deposed had their ethnic and 
regional support.
Q: So you think this lies behind the criticism of the captain and 
some of his top team members.
A: I am in a position to say so and I have reasons to say so 
because as soon as Wasim Akram was promoted to be in the side, 
there were a lot of commotions and in fact the matter was discussed 
also in our parliament. So therefore - (interrupted).

Q: But is there any truth in the accusations.I mean lot of people 
think there is no smoke without fire and the fact that 
Accountability Bureau, a government department, is investigating 
(the matter). Is it true one of your top batsmen was out in the 
night club from ten to four in the morning before the match?.
A: As regards these accusations, I have heard about it. These 
accusations were brought up first in 93,94,95.
Q: (Interrupting Chairman PCB) But we are talking about this World 
Cup.Aren't we?
A: I am giving you the background.
Q: (Again interrupting PCB Chairman). But is it true? We haven't 
got time to go into history.
A: OK.I am not in a position to either confirm or deny.
Q: Why not?. Haven't you asked your captain, haven't you asked your 
A: Yes, most certainly.Based on the reports that I have got from 
the team management, from the captain, they are very categorically 
denying that there was any such thing. That the matches were thrown 
away, that the players were violating the team management's curfew 
and based on those reports, I am able to confirm that no such thing 
Q: So you think you will get a completely clean bill of health from 
the Accountability Bureau when its report comes out.
A: Well, that is something arguable.First, I am not really sure 
whether the Accountability Bureau has been given such an 
assignment. Becuase had they been given such an assignment, of 
course, the competent authority has the power to do so, but that 
could not have been done without taking the Cricket Board into 
confidence. So far there has not been any official communication on 
the subject. We have not been informed about it and therefore I am 
not in a position to say whether such a thing has happened or not.
And secondly, just to add to this, there is already a Judicial 
Commission which is looking into this matter and I don't think any 
other agency is more competent to do so.-APP

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