------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 05 June 1999 Issue : 05/23 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Sartaj to visit New Delhi on 7th to discuss peace in Valley + They are freedom fighters, not intruders: Nawaz + Intense artillery duels: Mujahideen in control of 8 high ridges + 9 get death sentence in Hakim Said murder case + Najam Sethi released, treason charges withdrawn + Import duty, sales tax: IMF for withdrawal of all exemptions + Senate passes bill: Quota system extended for forty years + Budget to be tax-free, says Dar + Education schemes: Sindh gets less than 1pc of proposed funds + 35 journalists on govt's 'hit list' --------------------------------- BUSINESS & ECONOMY + US refuses to lift ban on yarn imports + Notice by Hubco 'uncalled for': Wapda + FCD conversion picks up after rupee float + CBR classification for import duty + Banks' consortium to provide Rs48b for transport plan + PTCL mobile telephone project delayed + East Collectorate nets Rs73m under ST Amnesty Scheme + POL price hike to raise Wapda, KESC power cost + Stocks fail to find direction --------------------------------------- EDITORIALS & FEATURES + The arbiters of justice Ardeshir Cowasjee + Who is the Commander-in-Chief? Ayaz Amir + The tyranny of time Irfan Husain ----------- SPORTS + Tight security plan for India-Pakistan clash + Pakistan are new favourites + Pakistan's hockey prowess will be tested in Brisbane

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NATIONAL NEWS
990604
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Sartaj to visit New Delhi on 7th to discuss peace in Valley
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Bureau Report

ISLAMABAD, June 3: Foreign Minister Sartaj Aziz told the Senate on 
Thursday that he was leaving for New Delhi on June 7 to open peace 
talks with his Indian counterpart to defuse the on-going tension 
between the two countries.
    
In his statement on the escalation of violations of the Line of 
Control (LoC) by India, the foreign minister said Pakistan was 
committed to resolve all outstanding disputes including Kashmir 
with India through dialogue and peaceful means.
    
He, however, said that if there was transgression of the LoC and if 
Pakistani positions were hit and air space violated, Pakistan will 
have no option but to retaliate in self defence. "Our brave armed 
forces are, by the grace of God, fully prepared to face all 
eventualities," he added.
    
The minister said Pakistan had been consistently pursuing the 
policy of dialogue but India continued to build forces in the 
Kargil sector and persisted in its campaign against Kashmir 
Mujahideen.
    
"This Indian obsession can cause new provocations, especially if 
there are attempts involving violations of the LoC," the minister 
said, adding, "we have made it clear that as in the past, we will 
resolutely defend our side of the LoC. We will continue to exercise 
restraint, but will firmly retaliate against any intrusion or 
violation of the LoC."
    
The minister assured the Senate that Pakistani armed forces were 
prepared to meet all eventualities and would not allow any 
violation of its territory and air space and the aggressor would 
not go un-punished.
    
At the same time, the minister insisted that Pakistan remained 
committed to the letter and spirit of Lahore Declaration and 
favours the path of dialogue and negotiations. "I am prepared to 
proceed to New Delhi on May 7 in an effort to promote this 
objective. It is now for India to respond to the prime minister's 
initiative in the interest of defusing the situation and avoiding 
any dangerous turn of events," Sartaj Aziz said.
    
The minister hoped that saner counsel would prevail in New Delhi 
and Indian side would be prepared to work with Pakistan to defuse 
tension and engage in the dialogue process to address meaningfully 
all issues especially the core issue of Kashmir.
    
The minister also presented the details about the recent 
developments along the LoC in the Kargil sector and said that 
Indian troops made an abortive attempt to capture positions 
controlled by Pakistan in the Sheyok sector besides targeting other 
areas on Pakistani side of the LoC but Pakistan army successfully 
defended these positions and thwarted every Indian intrusion.
    
Referring to Indian allegation that Mujahideen sent from across the 
LoC had captured heights in the Kargil areas and that India had 
mounted this massive operation to dislodge these Mujahideen, the 
minister said, "the Indian allegation of infiltrators from Pakistan 
is a familiar pretext that the Indian authorities have used to 
justify their frequent violations on the LoC.
    
"It is also a smoke-screen to mislead the international community 
about the brutal repression that India continues against the 
legitimate and indigenous struggle of the Kashmiri people for self-
determination."
    
The minister said that the Kashmiri struggle had been going on for 
past 10 years despite ruthless measures by more than 600,000 Indian 
troops deployed in occupied Kashmir and it was still continuing. 
"In its frustration India keeps blaming Pakistan for interference. 
Such false accusations cannot cover up India's ruthless repression 
of the Kashmiris," he said.
    
The minister reiterated Pakistan's moral, political and diplomatic 
support to the Kashmiris struggle and said that the intensity and 
scale of the Indian operations only signified the vigour of the 
Kashmiri struggle and the failure of policy of repression to subdue 
the Kashmiri freedom fighters.
    
The minister said that Pakistan had consistently drawn the 
attention of the international community towards this Indian 
repression. "This time, the Indian operation has crossed every 
limit. The ground deployments, the extensive use of heavy artillery 
and the deployment of air power has caused a qualitatively new 
escalation.
    
"This is dangerous situation and Pakistan has warned India about 
its incalculable consequences," the minister said, adding that both 
Pakistan and India were now nuclear powers and they must avoid the 
risk of a conflict.
    
Describing Kashmir as the root cause of tension in South Asia, he 
said, India must, therefore, cooperate with Pakistan in an effort 
to find a just and durable solution of Kashmir issue which should 
be based on the exercise of the right to self-determination by the 
Kashmiri people.
    
The minister said that Prime Minister Nawaz Sharif had recently 
twice talked to his Indian counterpart emphasising Pakistan's 
continued commitment to the Lahore Declaration and the dialogue 
process.

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990601
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They are freedom fighters, not intruders: Nawaz
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By Our Staff Reporter LAHORE, May 31: Prime Minister Nawaz Sharif 
says the people India brands 'infiltrators or intruders' are in 
fact Kashmiri freedom fighters who are struggling for their right 
to self-determination given to them under the United Nations 
resolutions.
    
Addressing a meeting at Jamia Naeemia and then at a book launching 
ceremony at Alhamra here on Monday, he said his Indian counterpart 
Vajpayee had taken it ill when, during his telephonic conversation 
with him a few days ago, he had used the term freedom fighters. He 
said Mr Vajpayee had also told him that if he (Sharif) believed 
they were freedom fighters, then there was no common grounds for an 
agreement between Islamabad and New Delhi.
    
The prime minister gave a brief account of his conversation with Mr 
Vajpayee on a demand from one of the audiences.
    
Mr Sharif called for the solution to the Kashmir dispute in 
accordance with the UN resolutions. He said the sooner the dispute 
was settled the better it would be for the two countries. He said 
while the settlement of the dispute would clear the air of 
suspicions, a delay would aggravate the situation.
    
He said the Kashmiri people had been rendering sacrifices for their 
right to self-determination for the past 12 years.
    
He defended the shooting down by Pakistan of two Indian planes 
which had intruded into Pakistan's territory, saying being a 
sovereign state Pakistan had the right to take such action against 
any aircraft violating its air space.
    
The prime minister sought solution to all problems through talks, 
as provided in the Lahore Declaration, signed only some three 
months back.
    
Referring to the nuclear tests carried out in May last year, Mr 
Sharif recalled that he had taken the decision in the supreme 
national interest although there were many people who were either 
opposed to such a step or they were wavering in their opinion. "I 
like the people who don't change their stand on issues. The 
enactment of the 14th constitutional amendments is reflective of my 
thinking on the issue".
    
He said he was staunch backer of healthy journalism and detested 
'dirty' journalism. He said those practising healthy journalism 
should take serious notice of the propaganda that Pakistan was a 
failed state.

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990605
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Intense artillery duels: Mujahideen in control of 8 high ridges
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SRINAGAR, June 4: India and Pakistan traded intense artillery fire 
in Kashmir on Friday as Indian troops recovered what they claimed 
were the bodies of three Pakistani soldiers fighting alongside 
freedom fighters.
    
India meanwhile said it was "examining a proposal" by Pakistan for 
peace talks for June 7 in New Delhi.
    
Military officials said heavy shelling across the Line of Control 
(LoC) continued, as India pushed on with its bid to evict hundreds 
of freedom fighters it says crossed the LoC in April.

Indian officials said air strikes on the Mujahideen continued for a 
10th day with an air mission targeting "bunkers, tents and storage 
areas" in freedom fighters posts.
    
Officials said Indian shelling on Friday focused on Mujahideen 
mountain posts at altitudes of up to 18,000 feet (5,450 metres), 
where snow was still falling.
    
Pakistan pounded targets in and around the Kargil sector of held 
Kashmir, some 240 kilometres northeast of Srinagar, the officials 
said.
    
Army spokesman Brigadier Mohan Bandari, claimed India had cleared 
15 heights in Batalik, Drass and Mushko regions, where eight 
remained to be recaptured.
    
"Bodies of three Pakistani army regular soldiers have been 
recovered in Thursday's action in the Batalik sector along with 
documents and weapons," he claimed.
    
Between 700 and 1,000 freedom fighters are believed to have crossed 
the border in the past month.
    
The bodies are to be displayed to the media on Saturday in 
Srinagar.

Military analysts have predicted the current fighting could drag on 
throughout the summer, until the Mujahideen are finally forced to 
abandon their high-altitude posts with the onset of winter.AFP

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990605
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9 get death sentence in Hakim Said murder case 
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Reporter

KARACHI, June 4: The Anti-Terrorism Court No 6 on Friday sentenced 
all the nine accused in custody belonging to the Muttahida Qaumi 
Movement to death in the Hakim Mohammad Said murder case.
    
According to prosecution, the accused riding in three vehicles on 
Oct 17, 1998 morning opened fire on Hakim Said in front of his 
Hamdard Matab at Arambagh Road. As a result, Hakim Said, Hakim 
Abdul Qadir and a peon of the Matab, Wali Mohammad, died while 
three other people were injured.
    
The convicts were identified as Mohammad Aamirullah Shaikh, 
Mohammad Asif, Ezazul Hasan alias Wazir, Mohammad Zubair Hassan, 
Nadeem Ahmed alias Nadeem Mota, Mohammad Shakir alias Shakir 
Langra, Mohammad Faisal, Muqarrab Ali alias Nazar and Mohammad Abu 
Imran Pasha.
    
The convicts remained calm and composed when the judgment was 
pronounced by ATC judge Dr Qammaruddin Bohra. Then, they left the 
court-room, raising slogans against the verdict, the government, 
the prime minister and in favour of MQM chief Altaf Hussain.
    
"Hand over SP CIA to the police and he will even confess the 
assassination of Liaquat Ali Khan," they yelled.
    
The accused were also fined Rs100,000 each. In default, they will 
have to serve rigorous imprisonment for one year. The court also 
awarded 10-year term and Rs10,000 fine to them for injuring Hakim 
Manzoor (complainant in the case), Mr Maroof and Mr Siddique.
    
The court ordered that the fine when recovered from the convicts, 
would be given to all the legal heirs of the deceased. The accused 
were charged with nine offences in three FIRs.
    
Two accused, Mohammad Amirullah Shaikh and Nadeem Mota, were also 
awarded seven-year term for keeping illicit arms. They were fined 
Rs10,000 each or, in default, would undergo an imprisonment of six 
months.
    
In all, 31 witnesses were examined by the prosecution before the 
Military Trial Court (MTC No 1). The case was fixed for recording 
of statement of the accused but the MTCs were abolished the same 
day by the Supreme Court. All the accused had denied their 
involvement in the crime and stated that they had been implicated 
only because they were supporters of the MQM.
    
There are 13 more accused in the case who have been shown as 
absconders. They were: Mohammad Naushad alias Major Dandi, a former 
ASI; Asif Baig alias Daddan, Masroor Iqbal, Rehan, Abdul Wahab 
Bandhani, Shahnawaz alias Ajmal Pahari, Mohammad Abid Khan, 
Mohammad Amin, Mohammad Ayub, Mumtaz alias KK, Mohammad Asim, Arif 
KDA-wala and Javed Turk.
    
None of the accused had either produced any evidence in their 
defence or given any plausible explanation on material evidence in 
their statements under Section 342 Cr.PC.
    
Two accused, MQM activists Saeed Bhai-ji and Haji Gul, had turned 
approver in the case. They had been examined by the court and the 
defence had not challenged the pardon extended to them. The 
prosecution submitted that the testimony of the approvers had been 
corroborated with other evidences which confirmed the conspiracy. 
It was contended that slight discrepancies cannot demolish the 
prosecution case as laid down by the Supreme Court in the case of 
Mehram Ali Vs The State reported in PLD 1998 S.C. Page 1445.
    
The counsel for accused Mohammad Abu Imran Pasha had submitted that 
the name of his client figured at one place only with no specific 
date in the confessional statement of accused Shakir Langra and 
that the piece of evidence was not totally corroborated.
    
The counsel, I.H. Hashmi, said that the abetment charge against 
Imran Pasha was only confessional statement of Shakir Langra which 
cannot form the basis on which the conviction was awarded.
    
Sardar M. Ishaque, counsel for accused Aamirullah Shaikh, Zubair 
Hasan, Nadeem Ahmed, Mohammad Faisal and Muqarrab Ali, submitted 
that the incident had not been witnessed and the prosecution 
witnesses were cited only in the FIR which meant that they were not 
present at the time of the incident.
    
The defence counsel had argued that the presence of the prosecution 
witness, Sarwar, at the Matab on the day of the incident cannot be 
accepted because the day was fixed for the women patients only.
    
He had further said that the identification parade was defective 
and not legal because the incident took place within a matter of 
seconds and it was not possible for anyone to identify the accused.
    
He had submitted that confessional statements were not properly 
recorded. Referring to the statement of Aamirullah Shaikh in which 
the latter had stated that there was no option with him but to 
confess, the lawyer said it was clear that the statement had been 
obtained in a crude way and under duress. Two accused, MQM 
activists Saeed Bhai-ji and Haji Gul, had turned approver in the 
case.
    
After declaring the military courts as unlawful, the government had 
transferred the case to the ATC.

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990603
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Najam Sethi released, treason charges withdrawn
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Bureau Report

ISLAMABAD, June 2: Editor of The Friday Times Najam Sethi was 
released after three weeks on Wednesday when the government 
cancelled the FIR and withdrew charges of treason against him.
    
Mr Sethi, talking to some foreign correspondents after his release, 
said he was arrested because he had been exposing corruption of the 
present government.
    
Some people in the government did not like it and they wanted to 
teach him a lesson, and warn the journalists community at large, he 
said.
    
Mr Sethi said the result had, however, been quite the contrary and 
his arrest had attracted a great deal of domestic as well as 
international criticism. "Nobody can teach a lesson to the press," 
he added.
    
About the treatment meted out to him, he said those who had picked 
him up were rough. Mr Sethi, who was also interrogated by the 
Inter-Services Intelligence Agency, said they were good and did a 
thorough professional job. They did not find anything against him, 
he added.
    
He said it was a "great error" on the part of the government to 
arrest him. If anything happened in future the whole press would 
fight against it, he added.
    
Regarding the Supreme Court, he said his confidence in the superior 
judiciary had been restored.
    
Responding to a question, he said, he had not been released on bail 
but had been absolved of the charges levelled against him.
    
Mr Sethi thanked all those who supported him and his family and 
raised voice for his release.

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990605
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Import duty, sales tax: IMF for withdrawal of all exemptions
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Correspondent

ISLAMABAD, June 4: The IMF officials and finance minister Ishaq Dar 
held two rounds of talks with the Central Board of Revenue Chairman 
here on Friday to decide crucial taxation matters including 
imposition of sales tax on services sector, including electricity 
and natural gas supplies.
    
Sources said that IMF officials insisted on imposing sales tax on 
this sector, and doing away with all exemptions of import duty and 
sales tax on essential consumer goods, including food items and 
agricultural inputs.
    
Agreeing in principle with the IMF consultants on withdrawal of all 
exemptions, the CBR and the finance minister are learned to have 
decided that the matter be decided in the final pre-budget meeting 
to be chaired by the prime minister some time next week. 
    
Most of the crucial issues related to the 1999-2000 budget are said 
to have been thrashed out by the federal secretary finance, senior 
CBR officials and the IMF team in a meeting held at the ministry, 
separately on Friday.
    
This meeting, apart from setting tax targets for import duty, sales 
tax, central excise duty and income tax, chalked out details of 
improving tax collecting mechanism and increase in the registered 
persons under income and sales tax heads.
    
Official sources revealed that the CBR has been asked to furnish on 
Saturday final estimates of sales tax from imposition of services 
tax on electricity/gas supplies on the basis of consumption chart 
obtained from Wapda and Sui Southern/Northern Gas Pipeline Ltd. The 
three state organizations provided a seasonal consumption chart to 
the ministry of finance last month indicating amount of power/gas 
supplies and charges thereon.
    
The meeting also discussed the IMF demand for doing away with the 
exemptions of duties and taxes allowed to the state sector 
corporations and utilities, and the evasion of payable taxes on 
their part.
    
The IMF consultants are said to have reminded the ministry and CBR 
officials that there was no place for such exemptions.

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990604
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Senate passes bill: Quota system extended for forty years
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Correspondent

ISLAMABAD, June 3: In what was perhaps the rarest precedent in the 
recent history of Pakistan, the Senate on Wednesday night passed by 
over two-thirds majority  63 votes for and one against  the 
Constitution (Sixteenth Amendment) Bill providing for quota for all 
regions and areas for 40 years.
    
The bill was opposed by only one Muttahida Senator Aftab Sheikh at 
all the stages of the consideration and passing the historical 
bill. Both Senators Aftab Sheikh and Jamiluddin Aali staged walkout 
from the House to register their protest on what they called the 
killing of the principle of merit. But they returned to the Senate 
shortly.
    
The amendment in the Constitution (16th amendment) held that 
"Provided that for a period not exceeding forty years from the 
commencing day, provisions may be made reserving posts for any 
class or persons and various provinces, regions or areas to secure 
their adequate representation in the service of Pakistan."
    
The statement of objects and reasons of the Bill stated that 
Article 27 of the Constitution provides safeguards against 
discrimination in services.
    
It said that in order to provide opportunity and representation to 
all classes of persons and areas in services, clause (1) of the 
said Article provides that for a period not exceeding twenty years 
from the commencing day of the Constitution, certain posts may be 
reserved for persons belonging to any class or area.
    
The statement said that it had been felt that since equal 
opportunity of education and other facilities were not yet 
available to all citizens of Pakistan, the period of twenty years 
specified in clause(1) of Article 27 be extended to forty years.
    
The constitutional bill as the Constitution (Thirteenth Amendment) 
Bill was moved by the Law Minister Khalid Anwar in the House.
    
It was opposed by Muttahida Senator Aftab Sheikh. In his dissenting 
speech, he said that the bill being talked about was not presented 
by the PML-N. It was a bill as Constitution (13th Amendment) Bill 
moved in 1994 by the then PPP Government Bill, Aftab Sheikh said. 
The Senator said that through this bill, the government was killing 
merit and violating principle of equality of opportunity.
    
Later Sen Jamiluddin Aali said that the bill was against the 
principle of national integrity and it amounted to fanning 
parochialism in the country. He said that the services should run 
on the principle of merit. He said that in India quota system had 
been introduced for the benefit of the untouchables.
    
Sen Iqbal Haider of PPP fully supported the bill but said that in 
the past the quota bill was abused for discrimination. He said that 
Karachi with a population of 10 per cent was given only two per 
cent representation in the federation. He pleaded that Karachi and 
all regions should receive their due representation. Sen Raza 
Rabbani fully supported the bill and claimed that it was moved by 
the PPP during its reign of government but then it did not have 
two-thirds majority in the Senate. He called for extending quota 
system to even the armed forces. He said that despite the vendetta 
of the ruling party, the PPP had supported the Constitutional Bill.
    
Sen Aftab Sheikh moved amendment in clause 2 of the Bill but it was 
rejected by the house. Finally the bill was passed by the House by 
63 senators voting for it against one senator opposing it. All the 
amendments moved by the minister were accommodated by the house.
    
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990603
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Budget to be tax-free, says Dar
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Bureau Report

ISLAMABAD, June 2: The government is contemplating a "tax- free" 
budget for 1999-2000 despite experiencing financial difficulties, 
says Federal Minister for Finance and Commerce Ishaq Dar.
    
Talking to Dawn here on Wednesday, he said the government was 
trying to give such a budget which should not be considered harsh 
for the common man. "We are doing our best to give a tax-free 
budget to our nation on June 12," he further said.
    
Responding to a question, he said still there was a gap of Rs16.5 
billion after having increased petroleum prices by 10 per cent. 
However, the government had not increased the petroleum prices as 
per the proportion affected in the world market, he added.
    
"This 10 per cent increase in oil prices would give us Rs3.5 
billion and not Rs10 billion as was reported in the section of the 
press", said Mr Dar.
    
Nevertheless, Dar said the government would try to adjust the gap 
of Rs16.5 billion without passing the burden to the people. "We are 
trying other methods," Mr Dar said without elaborating.
    
He agreed that there was a need to widen the tax base to net more 
tax payers instead of burdening those who were already paying it.

Asked about his two hour-long meeting with the visiting IMF review 
mission on Tuesday, he said the government was implementing home 
grown reforms to improve its economic conditions. "Ms Sena Eken, 
the leader of the mission appreciates our efforts to put the 
economy back on the track despite harsh international sanctions 
against Pakistan," he added.
    
He expressed the hope that Pakistan would get the next tranche of 
US $100 million by July this year. "The instalment of US $51 
million had been disbursed by the IMF today", he said adding that 
Pakistan's economic performance was further being improved to 
continue qualifying for the financial support of the donor 
agencies.
    
Asked about the National Economic Council (NEC) meeting being held 
on Thursday, he said it would discuss two-point agenda, i.e. new 
public sector development programme (PSDP) and funding to the 
provinces.
    
Responding to another question, Dar pointed out that the PSDP for 
1999-2000 was likely to be approved at Rs115 billion. "There can 
not be more funding for it," he said adding that the NEC would 
however finalise it.
    
He said the provinces would be offered funds in accordance with the 
divisible pool under the National Finance Commission (NFC) award. 
"The development programmes of the provinces are important element 
to be discussed threadbare in tomorrow's NFC meeting," Dar said 
adding that the chief ministers of the three provinces and the 
Governor of Sindh would attend the meeting.
    
Meanwhile, it was also learnt that the government had worked out 
the details of increasing the salaries of government employees to 
be announced at the time of the presentation of the next budget.

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990602
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Education schemes: Sindh gets less than 1pc of proposed funds
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Sabihuddin Ghausi
    
KARACHI, June 1: Not even one per cent of the Rs7.54 billion 
development funds proposed for Sindh in the 1999-2000 Public Sector 
Development Programme (PSDP) has been provided for education and 
training and science and technology sectors.
    
Information gathered from the relevant sources revealed that 14 
schemes in education and training in Sindh have received a total 
allocation of Rs74.21 million. This constitutes 0.98 per cent of 
the Rs7.54 billion share.
    
For two schemes in science and technology the PSDP provides Rs8 
million which is merely 0.17 per cent of the provincial share.
    
A Rs260 million scheme to improve education facilities in Karachi 
University could not find favour of the federal planners in 
Islamabad and no allocation has been made for this purpose.
    
So is the case of Rs19 million needed for setting up Quaid- i-Awam 
University of Engineering and Technology in Nawabshah for which no 
provision has been made in 1999-2000 PSDP.
    
The highest amount of Rs30 million has been provided for the 
establishment of Third World Centre for Science and Technology in 
Chemical Sciences of HEJ Research Institute of Chemistry at Karachi 
University. Total cost of this project is Rs477.53 million out of 
which Rs271.66 million is reported to have already been spent till 
end June 1998. A sum of Rs85 million was provided in 1998-99 and 
with the allocation of Rs30 million in 1999-2000 the project will 
be reaching final stages of the completion.
    
A sum of Rs13 million has been given for setting up a cadet College 
at Sanghar at a total cost of Rs102.5 million. The project has 
already consumed over Rs55 million so far.
    
The first phase of the upgradation of Sindh University Engineering 
College as Mehran University of Engineering and Technology at a 
cost of Rs597.76 million is also reported to be in final stages and 
in the 1999-2000 budget a token allocation of Rs6 million has been 
made for this purpose. An amount of Rs7 million has been given for 
meeting immediate needs of the Sindh University.
    
The 1999-2000 PSDP has provided a 'generous' provision of Rs 1.99 
lakh (0.199 million) for improvement of Sindh Madrassah-tul-Islam 
in Karachi. A sum of Rs5.21 million has been given for setting up 
an institute of business administration in Sukkur, Rs5 million for 
setting up a federal college of arts and design at Jamshoro, Rs2.80 
million for establishment of textile engineering department at 
Mehran Engineering University and Rs5 million for Shah Abdul Latif 
University in Khairpur.
    
For promotion of science and technology in Sindh, the 1999- 2000 
PSDP provides a token amount of Rs5 million and another token sum 
of Rs3 million for establishing a Technical Centre in PSTC.
    
Both these projects are in Karachi and estimated cost of the 
Institute of Industrial Electronics is Rs139 million while that of 
the Technical Centre in PSTC is Rs53.78 million.
    
Almost 40 per cent of Sindh's share of 1999-2000 PSDP is for four 
major road projects to be taken up by the National Highway 
Authority (NHA). For these four projects the 1999-2000 allocates a 
sum of Rs2.98 billion.

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990602
-------------------------------------------------------------------
35 journalists on govt's 'hit list'
-------------------------------------------------------------------
Correspondent

WASHINGTON, June 1: The Committee to Protect Journalists, a New 
York-based press freedom organization, is conducting an 
investigation into a "hit list" prepared allegedly by the Pakistan 
government.
    
"We are looking into it," a CPJ spokesperson said, confirming that 
the list contains the names of 35 prominent journalists.
    
According to the CPJ, the names were: Irshad Ahmed Haqqani, Rehmat 
Ali Razi, Anjum Rasheed, Suhail Warraich, Sohaib Marghoob and Roman 
Ehsan, (Jang Lahore), M. Ziauddin and Ansar Abbasi (Dawn 
Islamabad), Dr Maleeha Lodhi, Javed Jaidi, Nusrat Javed and Mariana 
Babar (The News Islamabad), Rehana Hakeem and Zahid Hussain 
(Newsline), Ejaz Haider, Khalid Ahmed, Jugnu Mohsin and Adnan Adil 
(The Friday Times), Mahmood Sham (Jang Karachi), Rashed Rehman (The 
Nation Lahore), Amir Ahmed Khan (Herald), Imtiaz Alam, Beena 
Sarwar, Shafiq Awan, Kamila Hyat and Amir Mir (The News Lahore), 

Abbas Athar (Nawa-i-Waqat Lahore), Kamran Khan and Shehzad Amjad 
(The News Karachi), Azam Khalil (Pulse), Mohammad Malik (Tribune), 
Imtiaz Ahmed (The Frontier Post Peshawar), Ilyas Chaudhry (Jang 
Rawalpindi), Naveed Meraj (The Frontier Post Islamabad) and Syed 
Talat Hussain (The Nation Islamabad).
    
According to reports received by the CPJ, the federal government 
had decided to establish a special media cell comprising officials 
from the police, Intelligence Bureau and the Federal Investigation 
Agency to punish the journalists who have been writing against the 
government.
    
Ehtesab Bureau Chairman Senator Saifur Rehman Khan would head this 
cell which would function simultaneously at Lahore, Islamabad, 
Karachi and Peshawar with its head office at Islamabad.


=================================================================== 
 BUSINESS & ECONOMY
990602
-------------------------------------------------------------------
US refuses to lift ban on yarn imports
-------------------------------------------------------------------

ISLAMABAD, June 1: The United States has refused to lift ban on 
Pakistani yarn exports, urging Textile Monitoring Board (TMB) to 
review its earlier recommendation to withdraw the ban.
    
Pakistan has unofficially learnt that the US has applied to TMB for 
the review of its earlier recommendation regarding lifting of 
moratorium imposed on yarn exports.
    
Pakistan is still awaiting official intimation by TMB about the US 
refusal for lifting ban.

Earlier, sources at Commerce Ministry said the Textile Monitoring 
Body of World Trade Organization (WTO) strongly recommended that 
United States was not justified in imposing ban which should be 
withdrawn.
    
Elaborating the issue, the sources said that United States had 
unilaterally imposed moratorium on Category 301 Combed Cotton Yarn 
import which compelled Pakistan to raise the issue in Textile 
Monitoring Body.
    
After six-day long marathon deliberations at TMB, the sources said, 
Pakistan won the case and United States was supposed to lift the 
ban within thirty days, by May 30, which has lapsed.
    
The TMB unanimously recommended that US should remove unilateral 
import quota imposed on the export of Pakistan Cotton Combed Yarn.
    
Pakistan is quite hopeful about the lifting of ban even if Dispute 
Settlement Board of WTO is approached against the stubborn attitude 
of the United States in this regard.
    
In case of non-compliance of the decision of the Dispute Settlement 
Board against, the US ban, Pakistan would have the option to go for 
arbitration against the quota restriction. Pakistan, the sources 
said, just started export of Combed Cotton Yarn worth $15m to the 
United States and could further expand, which was however impeded 
by imposing quota restriction.APP

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990604
-------------------------------------------------------------------
Notice by Hubco 'uncalled for': Wapda
-------------------------------------------------------------------

Reporter

LAHORE, June 3: Wapda has described the Hubco's notice of default 
"uncalled for" before the expiry of the letter of credit on June 
30. It had been renewed three times earlier, said a Wapda press 
release issued here.
    
Wapda, the press release added, was committed to meaningful 
negotiations with Hubco in an open and bonafide manner and expects 
Hubco should reciprocate the attitude and desist from taking any 
action which might vitiate the congenial atmosphere of negotiations 
between Wapda and Hubco.
    
The press release said that the notice is a consequence of the 
refusal of ANZ Grindlays Bank to renew a Letter of Credit (L/C) on 
behalf of WAPDA.
    
Wapda released that negotiations were being held between Wapda and 
Hubco to reach an amicable solution regarding outstanding dispute 
between them. Two meetings held on May 10 to 12 and May 24-25 have 
already taken place. Chairman Hubco Sheikh Muhammad Ali Raza had in 
fact appreciated the genuineness of Wapda's negotiating team in 
conducting these talks. At the meetings Wapda has raised various 
queries relating to a number of issues including the charging of 
premium of shares of Hubco, changes/amendments without any 
justification in the Power Purchase Agreement (PPA), cost over-runs 
and value of equity etc. However, no satisfactory answers to the 
said queries have been forth-coming from the Hubco side.
    
Instead, the press release said there has been marked change in the 
attitude of Hubco which is manifested by the issue of the opening 
of Letter of Credit and ensuing Letter of Default from the 
concerned bank i.e. ANZ Grindlays Bank. The bank had given 
assurance of renewal subject to clarification of two issues which 
were so clarified. However, the bank on Saturday, May 29, after 
banking hours sent a letter to Wapda conveying its refusal to renew 
the L/C. Surprisingly, the bank agreed subsequently to review L/C 
if more favourable terms were offered to them as service charges. 
This act clearly shows a malafide intent. It seems it was done with 
the knowledge of Hubco although the letter to Wapda was a private 
correspondence between the bank and the authority.
    
Hubco took upon itself to enquire about the issue from Wapda even 
before the expiry of the I/C. The letter of credit is to expire on 
June 30, 1999, and as has been practised in the past, has been 
renewed three times during June. The notice of default issued by 
the Hubco even before the expiry of L/C is therefore clearly un-
called for.

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990604
-------------------------------------------------------------------
FCD conversion picks up after rupee float
-------------------------------------------------------------------
Mohiuddin Aazim

KARACHI, June 3: The rupee float from May 19, 1999 has led to a 
faster conversion of frozen foreign currency deposits (FCDs) into 
rupees and dollar bonds.
    
Senior bankers say around $410 million worth of FCDs have been 
converted into rupees or dollar bonds during May 19 to June 2. They 
say that up to May 18, people had converted $5.73 billion worth of 

FCDs into rupees and dollar bonds adding that the figure rose to 
$6.14 billion on June 2 1999.
    
They say that $290 million worth of FCDs were converted into rupees 
and $120 million into dollar bonds during past two weeks.
    
Pakistan had frozen $11 billion worth of FCDs on May 28, 1998 after 
going nuclear to stop capital flight. Up to May 18, people 
converting FCDs into rupees were getting a fixed rate of Rs46 per 
dollar against floating inter-bank exchange rate of Rs51 or so.
    
But after the rupee float on May 19 banks are converting FCDs at an 
overall average buying rate of the previous day which currently 
hovers around Rs52 per dollar. Thus a benefit of about Rs6 per 
dollar is accruing to those withdrawing money from their frozen 
foreign currency deposits after May 19.
    
Senior bankers say in addition to the $6.14 billion worth of 
conversion into rupees or dollar bonds around $700-800 million of 
FCDs have also been liquidated to set off foreign currency 
collaterals. This reduces the $11 billion worth of FCDs frozen on 
May 28, 1998 to a little more than $4 billion as on June 2, 1999.
    
Bankers say if the current pace of conversion goes on the State 
Bank may get rid of the remaining $4 billion worth of FCDs by the 
end of this year. Theoretically faster conversion of FCDs should 
create a liquidity crunch in the market but that has not happened 
due to two reasons. First the inter-bank market has already been 
wallowing in excessive liquidity due to certain monetary measures 
taken by the State Bank. Secondly the major chunk of the rupee 
funds created through conversion of FCDs is coming back into the 
banking system - thanks to the popular prize winning deposit 
schemes of the banks.
    
Bankers say faster conversion of FCDs has also accelerated the 
growth of fresh foreign currency deposits that swelled from $525 
million on May 20, to a little less than $600 million on June 3. 
They further say that after the ban imposed on placement abroad of 
fresh foreign currency deposits mobilized after June 3, 1999 the 
supply of foreign currency would rise in the inter-bank market and 
dollar/rupee swaps amongst banks or between banks and State Bank 
would put excessive rupee funds to a better use.
    
"This in turn should stabilize the rupee in the inter-bank market," 
said a foreign treasury manager.
    
Presently the market has so much of surplus rupee funds - about 
Rs15-20 billion according to some bankers - that call rates have 
remained pegged around 1 per cent for past many days. The State 
Bank has also kept the liquidity intact and it even scrapped all 
bids for treasury bills received in Thursday's open market 
operation.

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990603
-------------------------------------------------------------------
CBR classification for import duty
-------------------------------------------------------------------
Correspondent

ISLAMABAD, June 2: Central Board of Revenue has announced 
classification of lubricating oil, milk preparation formula and 
polyurethane resins for the purpose of import duty collection.
    
The classification of lubricating oil has been issued under Customs 
General Order No 15/99, dated May 28, 1999, which says: The issue 
regarding classification of lubricating oil namely castrol prefect 
OT-46, T-32 and T-68 has been examined by the board in consultation 
with the collectorate of Customs (Appraisement) Karachi and Lahore.
    
It is hereby ruled that the lubricating oils with certain additives 
to improve viscosity rust etc are correctly classifiable under PCT 
heading 2710.0081 or 2710.0082, depending upon the mode of packing.
    
The classification of milk preparation has been notified under 
Customs General Order No 13/999, dated May 20, 1999, which says: 
The issue regarding classification of milk preparation namely 
"Morinaga" Chil-Mil Follow up formula has been examined by the 
board. It s hereby ruled that the product "Morinaga" classifiable 
under PCT heading 1901.1091 if put up for retail sale and under PCT 
1901.9030 if not put up for retail sale.
    
The classification of polyurethane resins has been notified under 
Customs General Order No 12/99, dated May 5, 1999, which says:
    
It is hereby ruled that products of headings 39.01 to 39.13 
including polyurethane resins in solution where the solvent 
accounts for more than 50 per cent by weight of the solution, are 
classifiable under PCT heading 3208.9000.

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990604
-------------------------------------------------------------------
Banks' consortium to provide Rs48bn for transport plan
-------------------------------------------------------------------
Reporter

LAHORE, June 3: A consortium of banks has agreed to provide Rs 48 
billion for the three-year national urban transport scheme prepared 
by the Small and Medium Enterprise Development Authority. 
   
For the first year starting from this July, the consortium will 
provide Rs 16 billion. This was stated by SMEDA Chairman Khawaja 
Belal Ahmed while talking to journalists here on Thursday. 
   
Under the scheme, around 15,000 buses with a seating capacity 
varying from 30 to 90 will be arranged for the urban areas. Allied 
Bank Limited is the lead bank in the consortium.
    
Belal said some top foreign transport companies had expressed an 
interest in the scheme both for manufacturing of buses and 
operating them in various cities through a syndicated operating 
mechanism. Loans to the tune of 70 per cent would be available 
against 30 per cent equity from the consortium to intending 
investors in the scheme.

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990603
-------------------------------------------------------------------
PTCL mobile telephone project delayed
-------------------------------------------------------------------
Shaukat Ali

LAHORE, June 2: The Pakistan Telecommunication Corporation Limited 
has delayed its project to launch mobile telephone service after 
having developed serious differences with the ministry of 
communication on this matter, informed sources told Dawn here on 
Wednesday. 
   
The scheme was to start in May this year but now it does not appear 
to be in sight by this November. Initially the PTC was to make 
around 55,000 mobile telephone connections available in big cities. 
Later upon finding interest of people in this service the figure 
could have been doubled. 
   
The PTC mobile telephone service, sources said, was designed to 
cost at least 40 per cent less than its competitor companies - all 
from the private sector. 
   
It is understood that the ministry has not been able to induce a 
capital investment of Rs 370 million in foreign exchange to start 
the project. 
   
The ministry, sources said, believed that it was the job of the PTC 
to raise funds for the project which had been on the corporation's 
development plan for the last two years. 
   
PTC officials said that the ministry had assured it to manage the 
funds for the mobile telephone service. 
   
Insiders do not rule out the possibility of pressure coming from 
some top private sector firms which have been doing roaring 
business in the mobile telecommunication field in the absence of a 
giant like the PTC. 
   
"Since the PTC has already announced to offer competitive rates to 
subscribers to its new service, companies doing handsome business 
at present feel threatened and are actively working to delay the 
PTC project", sources quoted ministry officials as saying. 
   
The PTC, sources said, was planning to charge Rs 3 per minute for 
outgoing calls during day hours and Rs 2.50 after dusk. For the 
incoming calls the corporation proposed to charge Re 1 during day 
time and make this facility available free of cost during night. 
"This package will be about 40 per cent cheaper than what the 
private companies are charging at present", the sources said. It is 
understood that pressure is also mounting on the PTC to revise its 
proposed package cost and bring it close to the ones available in 
the market. 
   
Insiders did not agree that the delay in launching the project was 
merely due to paucity of funds claiming that there was no dearth of 
funds with the PTC as it had already earned reasonable profit this 
year. 
   
"If it wants it can start the mobile phone service any time", they 
added.

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990603
-------------------------------------------------------------------
East Collectorate nets Rs73m under ST Amnesty Scheme
-------------------------------------------------------------------
Reporter

KARACHI, June 2: The Collectorate of Sales Tax (East), Karachi has 
collected over Rs72.665 million under the Amnesty Scheme from 
defaulters of sales tax, which expired on May 31, 1999, official 
sources said here on Wednesday.
    
The amnesty was granted by the Central Board of Revenue (CBR) to 
the tax-payers under SRO 461(I)/99 which provided that the tax-
payers depositing principal amount of tax arrears by the deadline 
would be spared from the levy of penalty and additional tax.
    
Sources said that the major parties which deposited tax arrears are 
Metropokutab Steel Rs11.903 million; Taha Spinning Rs5.997 million; 

PIA Printing Press Rs7.236 million; PSO Rs4.337 million; Bengal 
Fibre Rs2.213 million; G.M. Dossal Rs3.624 million; Ozone 
International Rs2.913 million; 3M Industries Rs1.896 million and 
Sadhuja Textile Mills Rs6.289 million.
    
The final collection on this account, sources said, is expected to 
be much more as returns and challans are still coming from banks.
    
A spokesman of the collectorate appreciated the good response given 
by the business community towards the Amnesty Scheme which was 
equally good for them to avoid penalty and additional tax.
    
This could be varified from a fact that in view of the large number 
of depositors, the CBR had to request the State Bank of Pakistan to 
direct the National Bank of Pakistan to extend the timings for 
receiving tax challans on the last day (May 31) from 4pm to 
midnight.
    
Sources said the State Bank immediately acted and instructed the 
NBP management to extend the timings. Thereafter, the Sales Tax 
Collectorate spread the word to the tax-payers through special 
announcements on radio and informed trade bodies, including Karachi 
Chamber of Commerce and Industry about the extended timing.

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990602
-------------------------------------------------------------------
POL price hike to raise Wapda, KESC power cost
-------------------------------------------------------------------
Haris Anwar

KARACHI, June 1: WAPDA and KESC cost of power purchasing from 
Independent Power Producers (IPPs) will go up due to recent 
increase in the petroleum prices.
    
According to energy sources, the fuel cost of IPPs is a pass 
through item in their tariff structure, which will have to be borne 
by Water and Power Development Authority (WAPDA) and Karachi 
Electricity Supply Corporation (KESC).
    
"Our tariff will go up because fuel cost is about 95 per cent of 
our total variable cost and 50 per cent of our total tariff," said 
an independent power producer.
    
Analysts at the UBS Global Research estimate that average IPP 
energy payments will rise to US cents 3.1 per kwh from US cents 2.8 
per kwh.
    
Official at Hub Power Company (HUBCO) said Hubco tariff would 
increase by over 5 per cent of current tariff, which is over US 
cents 6 per kwh.
    
The government has increased petroleum prices to pass on the effect 
of rupee depreciation against the US dollar after the unification 
of exchange rate last month.
    
As a result, furnace oil prices, which is used for thermal power 
generation, has gone up Rs6070 per ton  an increase of 10.5 per 
cent  from earlier Rs5500 per ton.
    
Petroleum products are now being imported at the interbank floating 
rate, which was Rs51.95 to dollar on Tuesday. Pakistan abolished 
rupee fixed parity at Rs46 to US dollar to meet the International 
Monetary Fund's condition of unified exchange rate.
    
Energy experts said this hike in petroleum prices would have a 
significant impact on the country's power sector due to its impact 
on the overall cost of generation.

As far as WAPDA and KESC are concerned, this will mean an increase 
of about Rs3 billion in their cash requirements in fiscal 2000.
    
"This increase in furnace oil prices is more damaging for IPPs and 
KESC because they are producing thermal electricity unlike WAPDA, 
which generates 40-45 per cent of total electricity through hydel 
sources," said an IPP producer.
    
An official at the Hub Power Company said increase in the furnace 
oil prices would further complicate their on-going negotiations 
with WAPDA on the power tariff reduction.
    
"On the one hand, WAPDA is trying to get IPP tariffs reduced, while 
the government has increased their input cost on the other hand," 
he said. WAPDA and IPPs are currently engaged in negotiations to 
end their year old row over power tariff.
    
IPPs say if the government wants to have IPP tariff reduced it must 
cut development surcharge on furnace oil, which is a tax on 
petroleum products.
    
But the government, facing tough IMF budget deficit target, offsets 
its tax revenue shortfall through petroleum development surcharge.

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990605
-------------------------------------------------------------------
Stocks fail to find direction
-------------------------------------------------------------------
Reporter

KARACHI, June 4: Stocks on Friday fell and rose amid a judicious 
combination of positive and negative news but failed to find a 
direction for themselves in the absence strong foreign buying. The 
index finished fractionally higher after eroding the initial gain 
of 20 points.
    
The market's early strength was based on three positive factors, 
firstly foreign minister Sartaj Aziz's visit to New Delhi on June 7 
to hold talks on the Kashmir situation and to defuse tension on the 
Line of Control, secondly, an expected announcement from the Hubco 
chairman about cut in power tariff rates after his meeting with the 
WAPDA chairman, and thirdly, the release of the Indian pilot.
    
'All these positive developments sent wave of optimism in the rings 
as investors were back in the rings and made massive covering 
purchases in the pivotals', analysts said.
The long-term outlook now appears to be a bit bullish as changing 
political background news may well give the market much-needed push 
possibly by the next week, they added.
    
'The market has fallen beyond its technical mandate because of 
tension on the Line of Control and fears of war between the two 
countries but the acceptance of offer of talks by India has 
altogether changed the political scene at least for the near-term', 
said a leading floor broker.
    
The market was awaiting an announcement from the Hubco chairman 
about the cut in tariff rates after his meeting with the WAPDA 
chairman but till the closing bell there was no word on the issue.
    
But the chief stimulating factor behind the smart early recovery 
was the news that the foreign minister Sartaj Aziz is going to New 
Delhi on June 7, to hold talks on the Kashmir situation, notably on 
the Line of Control (LoC).
    
'The perception that the tension on the Line of Control will be 
defused after the foreign minister's Delhi parleys is expected to 
inspire strong speculative support in the pivotals by the next 
week', analysts said.
    
The KSE 100-share index early was up 20 points but weekend selling 
at the early highs again pushed it down and finally it ended 
modestly higher, reflecting the strength of PTCL and Hub-Power.
    
It was last quoted at 1,136.44 points as compared to 1,136.18 
points, showing an increase of 0.26 points. The market 
capitalization also rose modestly to Rs 308.839bn from Rs308.780bn 
a day earlier.
    
After initial smart recovery, minus signs again dominated the list 
owing to late selling prompted largely by the weekend 
considerations.
    
Some of the leading shares managed to finish with modest to good 
gains under the lead of Atlas Bank, PSO, Shell Pakistan, General 
Tyre, Allwin Engineering, Century Paper and Century Insurance, 
which posted gains ranging from one rupee to Rs3.55.
    
Losers were led by Al-Faysal Bank, Adamjee Insurance, Alico, EFU 
General Insurance, Crescent Textiles, Ferozsons Lab, Sitara 
Chemicals and Lever Pakistan, which suffered fall ranging from one 
rupee to Rs2, the largest decline of Rs15.00 being in Lever 
Brothers.
    
The right issue at the rate of 60% by the ICI Pakistan also worked 
against the market sentiment as its share value fell further to Rs 
8.70 on persistent selling. Last week it touched the peak level of 
Rs 13.50 anticipating some positive news from the management.
    
Owing to Friday session, the trading volume was modest at 138m 
shares as compared to 159m shares a day earlier, while losers held 
a modest lead over the gainers at 62 to 44, with 51 shares holding 
on the last levels.
    
The most active list was topped by PTCL, up 35 paisa at Rs 21.65 on 
61m shares followed by Hub-Power, off 40 paisa at Rs 16.40 after 
hitting the peak of the day at Rs 17.25 on 37m shares, ICI 
Pakistan, easy 50 paisa at Rs8.70 on 12m shares, PSO, up one rupee 
at Rs 102.75 on 11m shares and Dewan Salman, higher 30 paisa at Rs 
30.50 on 4m shares.
    
Other actively traded shares were led by KESC, up five paisa on 3m 
shares, Engro Chemical, steady by five paisa on 1.393m shares, 
PIAC, higher 20 paisa on 1.586m shares, Dhan Fibre, lower 15 paisa 
on 1.214m shares and Maple Leaf Electric,up 15 paisa on 1.009m 
shares.
    
DEFAULTING COMPANIES: Textiles shares again came in for active 
trading on this counter under the lead of Al-Qadir Textiles, which 
was traded unchanged on 10,000 shares followed by Fawad Textiles, 
lower 10 paisa on 3,000 shares and Premium and Mian Textiles, 
unchanged, both on 2,000 shares.

Back to the top
=================================================================== 
 EDITORIALS & FEATURES
990530
-------------------------------------------------------------------
The arbiters of justice
-------------------------------------------------------------------
Ardeshir Cowasjee

THE judgment holding no man guilty of having stormed the Supreme 
Court on November 28, 1997 and of obstructing the course of justice 
has awoken and angered many, some of whom have acted and written. 
That these highly critical writings have been printed in our press 
is most encouraging indeed.
    
The file is thickening. We have read, inter alia, The Nation's 
editorial of May 16, 'SC contempt case,' Iftikhar Ahmad's letter 
'Storming of the supreme court' (The Nation, May 17), Javed 
Jabbar's letter 'Contempt of the people' [The Nation, May 18], 
Anwar Ahmad's column 'An opportunity lost' [The News, May 24] and 
the APNEC-PFUJ statement quoted therein, Dr Ijaz Ahsan's column 
'End of the rule of law' [The Nation, May 25].
    
The question raised is how come not one man was identified by the 
court when familiar faces were so prominently shown on the BBC and 
CNN filmed reports, were plastered all over the pages of our own 
press, and caught on the court's own CCTV cameras? Those on camera 
were called and testified to the effect that they were all indeed 
there, inside and outside the court building, but their role was to 
persuade the faceless stormers (fallen from the skies?) to disband 
and disappear. If all these men were there simply to beg the 
stormers to leave, who was it that led the stormers in? That was 
for the court to investigate under the powers vested in it under 
Article 187 of the Constitution: "The Supreme Court shall have 
power to issue such directions, orders or decrees as may be 
necessary for doing complete justice in any case or matter pending 
before it, including an order for the purpose of securing the 
attendance of any person or the discovery or production of any 
document."
    
Apart from this, the initial enquiring judge, Justice Abdur Rahman 
Khan, in his report of 18/2/98 recommended to the Chief Justice: 
"It is considered appropriate that the honourable Chief Justice may 
constitute a Bench of the Court to initiate contempt proceedings 
for the outrageous incident of 28/11/97. The Bench so constituted 
can adopt such measures and take such actions as it may deem 
necessary to identify the concerned persons."
    
The video cassette sent by me to the court contained footage of the 
BBC recordings of the riots that took place at the gates of the 
Supreme Court and inside its premises, plus footage taken from 
certain of the court's CCTV cameras. The request that recordings 
made by all the cameras installed in the court be shown in open 
court and provided to those wishing to identify others present that 
day was denied.
    
Hussain Haqqani, "former Special Assistant to Punjab Chief Minister 
Nawaz Sharif (1988 -90), former Press Assistant to Prime Minister 
Nawaz Sharif (1990-92), High Commissioner of Pakistan to Sri Lanka 
(1992-93), Press Assistant to Prime Minister Benazir Bhutto (1993-
94), former Secretary to the Ministry of Information and 
Broadcasting (1994-95)," in his written statement filed in the 
Court on May 4, 1998, solemnly swore "that having held the above 
mentioned positions, I am well aware how the governments and 
political parties of this country organize demonstrations and 
rallies and am of the opinion that the storming of the Supreme 
Court was the result of an orchestrated and organized plan by the 
ruling party."
    
Haqqani further submitted "that all the video recordings of all the 
CCTV cameras that were installed inside and outside the court 
should be shown on PTV with the plea that members of the general 
public should come forward and identify any individuals present 
that day either inside or outside the court building. Full footages 
of all video recordings made by Pakistani and foreign television 
crews should also be shown on PTV for the same purpose."
    
Many may not be aware that as a consequence of the film sent to the 
Supreme Court which prompted the Chief Justice to take action on 
December 15, 1997 and appoint a Judge to enquire into the matter, 
the honourable judges of the Supreme Court immediately ordered the 
removal of all the CCTV cameras installed in the court. The reason 
the cameras provided by a security company posed a threat to 
their 'internal security'. They later announced in April 1998 that 
they intended to ask the "authorities" to install their own in-
house CCTV system. This has still to be done.
    
It simply cannot be denied that the press people and other 
concerned citizens did their best to come forward in aid of the 
Supreme Court in its hour of dire need. It also cannot be denied 
that the people are incapable of making their judges see what they 
do not wish to see nor hear what they do not wish to hear.
    
The result of obduracy is now on the ground not only for the 
citizens of Pakistan to observe but for all those in the world who 
provide us with aid and who may be potential investors in the 
country. In the May 22 issue of The Economist a scathing editorial 
says it all. Entitled 'The rot in Pakistan,' with the sub-title 
'This is not the time for the IMF and the World Bank to be lending 
money to Pakistan,' it announces to the world:
    
"So when a government sets about undermining the institutions 
designed to hold it in check, it is time to start thinking about 
shutting off the flow of money. Pakistan has been run by such 
dreadful governments for so long that it seems barely worth 
remarking on any deterioration. But whereas previous governments 
were chaotic in their awfulness, this one has turned out to be 
systematic.
    
"Over the past two years, Nawaz Sharif, the prime minister, has 
been picking off individuals and institutions that he believes pose 
any threat to his own power. He has seen off a president and the 
chief of the army staff, and is now trying to push through a 
constitutional amendment that would give him sweeping powers to 
ignore Pakistan's legislature and provincial governments in the 
name of Islamization.
    
"The judiciary at first tried to check Mr Sharif, but has given up. 
When the chief justice of the Supreme Court, Sajjad Ali Shah, took 
the president's side in an argument with the prime minister in 
1997, a mob from Mr Sharif's party stormed the Supreme Court and Mr 
Sharif sacked Mr Shah. The courts have given Mr Sharif little 
trouble since..
    
"..... All this is unfortunate for Pakistanis, of course, but 
should it really matter to those who hand out the money? Yes, 
without an independent judiciary and a free press there is little 
chance of the accountability and openness that Mr Wolfensohn 
regards as essential to development."
    
Having said that the editorial asks the IMF's Board "to think long 
and hard about whether Mr Sharif's Pakistan is really likely to use 
the money well. Of course, there are many badly governed countries 
in the world, but some of them, often thanks to prodding from 
outside, have been moving in the right direction. Pakistan under Mr 
Sharif is moving in the wrong direction. It seems perverse to give 
it more cash to speed it on its way."
    
This editorial dwells also upon Najam Sethi's arrest. We all have 
read our government's statements on why he was picked up and we all 
know the real reason. But so far the government has been unable to 
justify the manner in which he was arrested and battered, in the 
middle of the night, and then kept incommunicado for days. The 
Supreme Court may perhaps ask the government why this was done. 
Surely nobody is above the law.
    
Arresting citizens without warrants or charges is nothing new in 
this country. In 1976, twenty-three years ago, I was arrested 
without a warrant, and taken into custody without any charge having 
been framed. (More on this another day.) The point I now make is 
that in such circumstances what is important is what sort of men 
sit in judgment on one's fate.
    
After two days in police custody, the magistrate concerned took suo 
motu action and ordered the police to produce me in his court. 
Politely he informed me that he had read of my arrest and had tried 
unsuccessfully to ascertain why and under what charge it had 
happened. He asked if I would like him to order that I be moved to 
jail, to judicial custody. Seeing consternation on my face, he 
explained that the suggestion was made for my protection. I would 
be safer in jail. The police may beat me up. That magistrate had 
more concern for the welfare and liberty of an individual than some 
who adorn our higher Benches. Should he by any chance be reading 
this, I ask him to accept this belated expression of my gratitude.

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990604
-------------------------------------------------------------------
Who is the Commander-in-Chief?
-------------------------------------------------------------------
Ayaz Amir

WHEN your soldiers are in the battle zone and the air is heavy with 
the threat of war, it is no time for hair-splitting or of making a 
cult of scepticism. It is a time to support the soldiers and rally 
behind the commander-in-chief. This is what happens in the 
established democracies. This is what we should do.
    
But a nagging doubt remains. Who is the commander-in-chief? Field 
Marshal Tarar? Understandably, the mind boggles at the mere 
suggestion. General Parvez Musharaf? He is the army chief, a tough-
looking one too, but not the supreme commander which is a good 
thing if only because of Clemenceau's warning sounded at the 
beginning of the century that war is too serious a business to be 
left to the generals. For the higher direction of war and peace the 
buck must stop elsewhere. But where?
    
There is no quarrelling with fate. The Churchill we have is the 
Helmsman of the Heavy Mandate. It is at this point that concealed 
doubts turn to outright alarm. Whenever the prime minister 
declares, as he does at the slightest opportunity, that having 
become a nuclear power our defence has become impregnable, mine 
must not be the only heart to sink. Over the years Pakistani 
leaders have developed the well-honed capacity of uttering words 
devoid of meaning, words with no relation to anything in the real 
world, and this prime minister, forged in the crucible of the worst 
kind politics Pakistan has known, has taken this trend to new 
heights. Even so, at this juncture when the country finds itself at 
a critical pass, there should be a moratorium, even if a temporary 
one, on meaningless speeches delivered at random across the 
country. 		
    
Impregnable defence indeed. All of Russia's nuclear weapons could 
not save it from defeat in Chechnya. America's nuclear might could 
not save it from humiliation in Vietnam. From whence comes our gift 
for poetic exaggeration? Our nuclear status would look more 
impressive if accompanied by a softer and more responsible 
discourse. Instead of which it has given added impetus to the 
mindless chauvinism which often colours our national thinking.
    
This is folly of a serious kind for from it spring such absurdities 
as the Chaghi celebrations and the erection of rocket models at 
traffic roundabouts. It is almost tempting to ask whether minds 
capable of conjuring up such spectacles can possibly have the 
breadth of vision required to look after the country's highest 
interests. If we are not summoning up the spirit of Dunkirk let us 
at least keep the ghosts of ridicule at bay. This is the minimum we 
owe our soldiers.
    
In a limited sense the Kargil operation has been brilliantly 
conceived. It is a Siachen in reverse. Way back in the eighties, 
when General Zia was commander of the faithful, units of the Indian 
army stealthily occupied the commanding heights of the Siachen 
glacier. Now the Indian army is having to swallow some of its own 
medicine in the Kargil sector. Despite tough fighting and the use 
of airpower it is finding it difficult to dislodge the guerrillas 
from the heights they have occupied. It should be a profoundly 
disquieting experience for the Indian army. But some troubling 
questions remain for us.
    
What are the ultimate aims of the guerillas? Do they want to hold 
on permanently to the high ground they have occupied? If the answer 
is yes, this would violate one of the basic tenets of guerrilla 
warfare: do not fight set-piece battles with a regular army. It 
takes no extraordinary prescience to see that over time the 
guerillas will be systematically cut down, whatever it takes the 
Indian military to achieve this aim, unless they receive adequate 
supplies and reinforcements. Inevitably this would mean logistic 
and strategic support from the Pakistan army. Have these 
possibilities been thought through to the bitter end? Has 
contingency planning been made for a wider Indian response as 
happened in 1965 when a limited war in Kashmir literally overnight 
turned into a full-fledged war between Pakistan and India? We 
cannot afford to repeat that experience.
    
If it be possible to limit the Kargil operation, if, in other 
words, it can be kept Siachenised  a festering sore that refuses 
to heal and keeps bleeding the Indian army  it will vindicate the 
assumptions on which presumably its planning is based. But if it 
spreads and engages the armies of the two countries, it will be 
another blunder to adorn the museum of Indo-Pak history.
    
Along the way there is one piece of nonsense that Pakistan's fast-
expanding tribe of Chaghi strategists should disabuse itself of. 
Nuclear weapons, except in the hands of the mentally deranged, are 
an option of last resort, to be used only when the twilight of the 
gods is at hand. As such, they help draw a line in the sand: a line 
an adversary knows he should not cross. But by no stretch of the 
imagination do they confer immunity from conventional attack. China 
and the former Soviet Union fought bitter border clashes even 
though both possessed nuclear armouries. Vietnam successfully 
defended itself against Chinese attack without being deterred by 
China's nuclear weapons. If India resorts to adventurism along the 
Line of Control, it will not be the Kahuta Research Laboratories 
which will form Pakistan's first line of defence but the Pakistan 
army. The same holds true for India. Conventional pinpricks will 
invite a conventional response. A clash of arms between the two 
countries is not to be ruled out simply because both countries have 
nuclear weapons.
    
With the temperature already high along the Line of Control, a 
slight slip or miscalculation could accordingly mean the difference 
between peace and war. This underscores the importance of 
leadership in this ongoing crisis. It is also a reminder to the 
people of Pakistan that for better or worse, their Montgomery in 
charge is the helmsman of the heavy mandate and it is his ultimate 
responsibility to see that the situation does not get out of hand. 
But they also have a sneaking suspicion that for their leader to 
acquit himself of this responsibility will require greater 
resources of leadership than he has been able to show in this 
gathering crisis. Flitting here and there, delivering repetitive 
and often boastful speeches, does not quite convey the image of the 
inspirational leader who has his grip over the situation or who 
knows how to summon the nation's spirit to the barricades. In any 
case, for two years he has pursued a narrow and self-serving 
political agenda, proving himself to be more an emperor of Raiwind 
than the prime minister of all of Pakistan. Can he rise above his 
prejudices? Can he transcend his limitations? It will take some 
doing but this is the outline of the challenge before him.
    
Our soldiers for their part are doing fine. They can give a good 
account of themselves against the stiffest odds. But like the best 
armies in the world, their valour would be useless if put to the 
service of quixotic fancies and stupid dreams. The bravery of our 
soldiers was no less in the great encounters of 1965 and 1971. But 
they were betrayed by clueless and blundering leaders who steered 
the ship of state into tempests of whose intensity they had not the 
faintest idea.
    
The most important test of leadership is to know how far to go. 
Along the Line of Control our soldiers are doing the nation proud. 
It is now for our commanders to realize the truth of Clausewitz's 
dictum that war is a continuation of politics by other means. It is 
not an end in itself. Do we have a clear idea of what we want? Are 
the methods being employed the best to achieve that aim? After all, 
there is no greater crime a commander-in-chief can be accused of 
than the glorification of arms without a clear sense of ultimate 
purpose.

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990605
-------------------------------------------------------------------
The tyranny of time
-------------------------------------------------------------------
Irfan Husain

AS the turn of the millennium looms on the horizon, expectations, 
fears and hopes focus our thoughts on an event that is symbolically 
of huge significance but is ultimately just another date.
   
A spate of articles has been written to prove that the new 
millennium actually began a couple of years ago. This kind of hair-
splitting is about as interesting as the endless speculation on who 
actually wrote Shakespeare's plays. Who knows, and who cares? The 
important thing is that they were written and are with us today as 
part of our common heritage. As an era draws to a close, it is 
irrelevant to speculate on which precise day it actually comes to 
an end. We can all pick the night we want to ring out the old and 
ring in the new, but for my part, I will stick to December 31, 
1999.
   
The whole business about New Year's has just been an excuse to 
party. This is fine by me, but there is often an air of desperation 
as the revellers feel almost obliged to have a good time. The date 
imposes a pressure of its own as people go from one party to 
another in a frenetic attempt to have "a good time." Indeed, plans 
for the millennium were laid years ago by some serious jet-setters. 
A hotel in London is charging 5,000 pounds per person for the 
festivities which include dinner on new year's eve plus two nights 
in the hotel. Punters determined to squeeze every ounce of forced 
fun out of the occasion will fly to Samoa to catch the first light 
of December 31, and then fly West with the sun, stopping to party 
en route. My own plans are much more modest, but do not include 
incurring the wrath of our home-grown Taliban.
   
The whole business of calendars and clocks running every moment of 
our lives is a relatively recent phenomenon. Accurate clocks were 
not commonly available until around 150 years ago, and did not 
become prevalent until the logic of capitalism and nascent 
industrialization imposed their own rhythm on urban life. Factory 
workers, recruited from the fields, suddenly had to clock in and 
clock out. Time, earlier measured by the rising and setting of the 
sun, suddenly acquired a precise and quantifiable value. Festivals 
that had been traditionally associated with certain seasons were 
now given exact dates.
   
These warped temporal values were then transmitted around the world 
by colonisers, traders, mercenaries and clerics. Natives from 
Bombay to Borneo, and from Angola to Arabia were taught the value 
of time. Fortunately, most of the colonised population did not have 
access to clocks and watches, nor did they work in sweat shops and 
factories, thus escaping the tyranny of time. Much to their 
colonial masters' fury, they ambled in and out as their stomachs 
and the seasons dictated. For them, the European preoccupation with 
ticking machines was a complete mystery. They simply could not 
comprehend why they had to be at a certain place by a given time 
and why an hour here or there should make any difference.
   
This same laid back attitude towards punctuality prevails in much 
of the developing world. Indeed, now it is the educated elite who  
in other ways the heirs to the colonial heritage  make a point of 
being late. They invite people to dinner at eight and are stunned 
if a guest arrives at nine. Dinner, of course, is not served until 
midnight. The time fixed for meetings is more of a declaration of 
intent than a precise appointment. Of course, this attitude is 
frowned upon by multinational corporations, and all the imported 
management books teach the virtue and value of punctuality. Local 
entrepreneurs are not impressed: they are invariably late in 
meeting export orders, just as they seldom bother to keep their 
appointments.
   
Technology has had a strong though indirect impact on the way we 
view time. Early clocks were made progressively more accurate as 
their precision was crucial in determining the latitude of a ship. 
Even a small error could result in a vessel being hundreds of miles 
off course. Indeed, thousands perished at sea through navigational 
mistakes. But once the mechanism was perfected, clocks invaded our 
lives, making us slaves to the inexorable tick-tick of time.
   
For centuries, letters were the only form of long-distance 
communication. When you received one, you could read and re-read it 
while mentally composing a long and elegant reply. Then came the 
telephone, and all of a sudden, you were forced to answer straight 
away without time for reflection. At the office, you could tell 
your secretary to inform the caller that you were out, but this was 
difficult when the phone rang at home. The fax has added yet 
another twist to office communication. Because you receive a 
written query so quickly, there is pressure to respond just as 
fast. In the case of a letter, you could lie and say you hadn't 
received it, but a fax machine has the effrontery to confirm to the 
sender that you are in fact reading the missive at that very 
moment.
   
Computers have compounded this pressure. Originally invented as 
number-crunchers to speed up complicated and boring calculations, 
they are now connected in a vast and insidious network that not 
only threatens to take over our lives, but have imposed a rhythm of 
their own. People now communicate almost exclusively on the 
Internet through e-mail and in online chat rooms. When you get a 
letter by e-mail, it is invariably badly written and full of 
spelling mistakes; unfortunately, your reply is little better. The 
problem is that there is now a compulsion to respond immediately as 
the incoming message shows up on the screen. But the worst 
offenders live their virtual lives in chat rooms where `you' 
becomes `u'; `your' becomes `yr'; and every kind of grammatical 
error not only goes unpunished, but proliferates.
   
If we are lucky, the Millennium Bug will crash all computer hard 
drives, wreck the Internet, and erode the foundations of Bill 
Gates' empire. And if we get exceptionally lucky, all watches and 
clocks will simultaneously explode at midnight on December 31. 
Amen.


===================================================================
SPORTS
990603
-------------------------------------------------------------------
Tight security plan for India-Pakistan clash
-------------------------------------------------------------------

LONDON, June 2: Security will be at its tightest when India meet 
Pakistan in the cricket World Cup in Manchester next week, 
organisers said on Wednesday.

Police and stewards are braced to ensure that border tensions that 
have flared this month between the two nations over Kashmir do not 
spill out on to the stands at Old Trafford next Tuesday.
    
Pakistan's team manager Zafar Altaf, said the Indian and Pakistani 
teams had met on Wednesday at a Buckingham palace lunch hosted by 
Queen Elizabeth for the "Super Six" teams still in the competition.
    
"Unfortunately there is an unfinished agenda at home," Altaf told 
Reuters. "But what we are concerned about is the sprit of the game. 
The two teams know each other so well."
    
Police said they had consulted Lancashire Cricket Club and local 
community leaders "to ensure the enjoyment and safety of all fans".
    
They will be using crowd control methods honed over many years of 
policing huge numbers of soccer fans attending home games at 
Manchester United.
    
"Appropriate resources will be available to meet any eventuality 
that might arise. We police United all the time so we are used to 
dealing with big events," police said.
    
Organisers had consulted widely with police, stewards and safety 
officers to ensure that "security will be at its tightest", a 
tournament spokeswoman said.
    
There would, however, be no attempt to separate Indian and 
Pakistani fans as all 22,000 tickets had been sold, most of them 
some time ago to people who did not know which teams they would be 
watching at this stage in the competition.
    
Altaf said individual fans should be given the responsibility of 
looking after small groups of spectators, so that any trouble could 
be nipped in the bud.

    
"We need a different approach," he told Reuters. "Cricket should 
not be discredited at Old Trafford."
    
The organisers have already said that any banners with political 
slogans will not be allowed into the ground.
    
They have also made clear that after a number of pitch invasions 
that have raised concerns for the safety of players and umpires 
that they will expel the culprits.
    
It is a pitch invasion that the cricketers fear the most.
    
India captain Mohammad Azharuddin said earlier this week: "Even 
before the last wicket falls, players are thinking how to get back 
quickly to the pavilion.
    
"It's not the Pakistan players we fear, but the fans."Reuters

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990602
-------------------------------------------------------------------
Pakistan are new favourites 
-------------------------------------------------------------------

LONDON, June 1: Pakistan were declared favourites to win the World 
Cup for the first time here on Tuesday  a day after crashing to 
one of the greatest upsets in the 24-year history of the 
tournament.
    
Pakistan, who lost to Bangladesh by 62 runs at Northampton, were 
quoted by London-based bookmakers William Hill as 13-8 for the 
title, leap-frogging South Africa who have slipped to 15-8 after 
starting as 5-2 shots.
    
Australia, despite being four points behind Pakistan going into the 
second phase and needing to win their next three games to have a 
chance of reaching the semi-finals, are third on 6-1.
    
Bookmakers Ladbrokes, however, had Pakistan and South Africa both 
on 13-8 after each finished on top of their group with four wins 
and a loss.
    
A William Hill spokesman said punters appeared to have taken no 
notice of Pakistan's defeat, which had no bearing on the tournament 
since Bangladesh  one of only three non Test-playing nations in 
the event  had already been eliminated.
    
"Nobody looked at that, although the odds are changing every day 
and match by match  this is the first time Pakistan are being seen 
as the favourites for the title."
    
New Zealand and India, meanwhile, were at 8-1 and Zimbabwe, despite 
taking four points into the second round to top the qualifiers 
alongside Pakistan, were on 16-1.AFP

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990531
-------------------------------------------------------------------
Pakistan's hockey prowess will be tested in Brisbane
-------------------------------------------------------------------
M. Majid Khan

Pakistan's hockey team's morale has gone up after its creditable 
performance in the ninth Azalan Shah Cup where it earned the first-
ever victory. But next month in Brisbane the greenshirted boys 
would be facing a more challenging task to win back the Champions 
Trophy.
    
The 21st Champions Trophy, starting on the Australian soil from 
June 10, is a totally different proposition as the world's best six 
teams would be contesting for the top honour. The Azalan Shah Cup 
was not a major event as the field was not as strong as it would be 
at Brisbane.
    
Pakistan's performance in the 21 years history of the prestigious 
Champions Trophy had been highly disappointing for we had only been 
victors thrice on our own soil. We won the 1978 inaugural Champions 
Trophy at Lahore's grassy ground and retained the trophy at the 
Karachi Hockey Club of Pakistan's newly laid astroturf in 1980. It 
took us no less than 14 years to recapture the trophy at Lahore 
four years ago in 1994. We had the consolation of reaching the 
final in Lahore last year to be beaten by the Netherlands (1-3), 
who enjoy the status of a great hockey nation for they are also the 
reigning champions of the Olympic Games and the World Cup.
    
Therefore, the 11-day Brisbane contest would be highly demanding 
for it would be contested on the single league basis before the two 
top teams, securing the highest points, meet in the final on June 
20.
    
Last week, the Pakistan Hockey Federation's Selection Committee, 
after watching the formal one day trials at Lahore's National 
Hockey Stadium, named an 18-member squad. The comeback of righthalf 
Mohammad Usman, right-winger Mohammad Irfan and Imran Yousuf at the 
cost of Mubashir Mukhtar, had an element of surprise. The only new 
face in the squad is Kashif Javed, the 0talented centreforward who 
had given excellent performance in the recently concluded National 
Championship at Lahore and also improved a lot at the national 
camp.
    
Kashif has replaced Mohammad Anis who suffered injury in a Karachi 
road mishap and did not join the camp.
    
Olympian and World cupper Mohammad Usman, who suffered ankle injury 
during practice session before he was to lead the team in the 
Bangkok Asian Games in November last year had been out of the 
international hockey for no less than six months. A seasoned 
campaigner, he did appear in the Karachi trials for the Azalan Shah 
but showed lack of fitness and for the Malaysian trip.
    
Now the selection committee, headed by Senator Mir Zafarullah Khan 
Jamil, has included Usman in the team which will be captained by 
Dr. Atif Bashir. Though Usman is senior to Atif Bashir but the 
selectors, it appears, are not fully convinced about the complete 
match fitness of Usman to remain on the ground throughout a match. 
Usman might be used for brief brats, otherwise he would have been 
given his right to lead the team.
    
Moreover, the inclusion of Imran Yousuf, the brother of Irfan 
Yousuf, at the cost of Mubasshir has also come as a surprise. On 
his disappointing show at the Bangkok Asian Games, Imran Yousuf was 
dropped and in his absence the Pakistan team did well at Kuala 
Lumpur. Mubasshir was a member of the victorious team of the Azalan 
Shah Cup.
    
Also remaining out of international competition for about three 
months through injury, which he sustained in the Test series 
against India, in February this year, right-winger Mohammad Irfan 
is also back in the team with a question mark regarding his 
complete fitness.
    
The fundamental requirement of selecting a player is his full 
fitness as even a highly experienced player lacking match fitness 
becomes a liability. No country takes such a risk.

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