------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 8 May 1999 Issue : 05/19 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Pakistan, US sign 'open skies' accord + Sultan-Nawaz talks: S. Arabia backs stance on Kashmir + CTBT signing: Indian military buildup a matter of concern: FO + Mandela calls for Nuclear free South Asia + PPP to fight for press freedom: Benazir + Partial privatization possible by Dec: Dar + Wapda defers modernization plan + Pakistan not certified to export shrimps to US + Welfare package for labour announced + Opposition stages token walkout in Senate + New setup planned to regulate city transport --------------------------------- BUSINESS & ECONOMY + Govt bracing to manage rupee float + State Bank injects Rs6.05bn in money market + N-scientists evolve three new cotton varieties + Accord for making 750cc car signed + NWFP to abolish zila tax, octroi next fiscal + Income Tax laws for bureaucrats to be amended, says Dar + Fishermen threaten to sink trawlers of US firm + Sri Lanka looking for Pakistan tea markets + KSE index recovers another 23.69 points --------------------------------------- EDITORIALS & FEATURES + Betrayers of our trust Ardeshir Cowasjee + The Suhartoization of Pakistan Ayaz Amir + The view from the top Irfan Husain ----------- SPORTS + Pakistan factfile for the World Cup + Council accepts Miandad's resignation unanimously

Pakistan, US sign 'open skies' accord
Shaheen Sehbai

WASHINGTON, May 7: Pakistan and the US have signed a new "Open- 
Skies" aviation agreement which allows free access to each other's 
airlines, a US Department of Transportation announcement said.
But an official of the DOT explained to Dawn that the new agreement 
would not, in any way, change the status of Pakistan's CAA from its 
present Category-2, which restricts increase in existing service 
from Pakistan to US.
The US announcement said the new Open-Skies aviation accord was 
concluded through an exchange of notes between the two governments.
"Open-Skies agreements permit unrestricted service by the airlines 
of each side to, from and beyond the other's territory, without 
restrictions on how often carriers fly, the kind of aircraft they 
use, and the prices they charge," the announcement said.
Asked to explain the significance and meaning of the new accord, a 
DOT spokesman said it would allow Pakistani airlines to come to any 
destination they wanted but after they are approved by the FAA. US 
airlines are already allowed to fly into any Pakistani destination.
The spokesman also revealed that PIA could fly its newly leased 
747-300 aircraft to US routes provided they were obtained on a "wet 
lease" from a Category-1 airlines and if the crew also belonged to 
the same airline. The planes would not be allowed with Pakistani 
crews, he said.
Aviation experts said this raised new questions about PIA's 
consultancy services, planning and management as so far PIA has 
been unable to operate the new aircraft on the US routes because of 
Category-2 restrictions.
The new leased aircraft were taken for American routes but later 
PIA conceded that they will be flown on UK, Jeddah and other 
sectors and not US. At the moment they are being used on increased 
domestic flights between Pakistani cities and are said to be 
running into losses.
Aviation experts said if these aircraft could fly into US, why was 
PIA not using them by hiring crews from Cathay Pacific, from which 
the aircraft have been leased. "As all maintenance is being done by 
the Cathay Pacific people, if crews were also hired, PIA would have 
been able to run these planes to US routes," they said.
According to FAA rules, countries whose air carriers fly to the US 
must adhere to the safety guidelines of ICAO, the United Nations' 
technical agency for aviation which establishes international 
standards and recommended practices for aircraft operations and 
The FAA, with the cooperation of the host civil aviation authority, 
only makes assessments of those countries whose airlines have 
operating rights to or from the United States, or have requested 
such rights.
The new Open-Skies agreement replaces the accord signed in 1996 
described by officials as "a new, liberalized aviation regime to 
replace their half-century-old agreement."

Sultan-Nawaz talks: S. Arabia backs stance on Kashmir

ISLAMABAD, May 6: Second Deputy Prime Minister and Defence Minister 
of Saudi Arabia Prince Sultan bin Abdul Aziz Al Saud on Thursday 
expressed support for Pakistan's principled stand on Kashmir and 
appreciated the initiative taken by the Prime Minister to engage 
India in a meaningful dialogue for peaceful settlement of Kashmir 
He stated this at a formal round of talks with Prime Minister 
Mohammad Nawaz Sharif here on Thursday evening.
The Prime Minister expressed appreciation for the steadfast support 
that the government and people of Saudi Arabia continue to extend 
to the cause of Kashmir.
The two leaders discussed wide-range of issues including matters of 
mutual interest, regional and global issues.    
While reviewing the bilateral relations, the two leaders noted with 
deep satisfaction that "Pakistan and Saudi Arabia are blessed with 
a unique relationship that rests upon mutual trust and commonality 
of interests; and together the two countries stand to form a pillar 
of strength for the Ummah."
They also expressed satisfaction over the steady growth in the 
bilateral relations in various spheres; reconfirming their resolve 
to raise its profile in the substantive areas commensurate with the 
level and quality of relations in the political field.
Welcoming Prince Sultan, Nawaz Sharif said that the government and 
people of Pakistan fondly recall his visit to Pakistan in the year 
Mr Sharif lauded the role played by the leadership of the Kingdom 
in the service of Muslim Ummah. He asked Prince Sultan to convey 
his greeting and best wishes to Khadimain Al- Shariffain King Fahd 
bin Abdul Aziz Al-Saud.
Prince Sultan, while expressing his deep appreciation for the 
welcome, observed that he had come to his second home and the visit 
provided him an invaluable opportunity for a closer and in-depth 
exchange of views with the Prime Minister.
Later, the PM held a banquet in honour of Prince Sultan and his 
accompanying delegation.-APP


CTBT signing: Indian military buildup a matter of concern: FO
Hasan Akhtar

ISLAMABAD, May 6: Pakistan said on Thursday that it could not be 
oblivious to India's "huge military buildup, including its nuclear 
and missile arsenal, and the increasing asymmetry in the 
conventional field", while deciding to abide by the proposed CTBT 
by September.
Foreign Office spokesman Tariq Altaf told a news briefing here 
although Pakistan had delinked itself from India on the issue of 
accepting the proposed international nuclear test ban treaty, 
"maintenance of a credible deterrence and the options linked to it 
had to be fundamentally viewed in the security context" of 
Pakistan. He affirmed that Pakistan had delinked itself on the CTBT 
from India and adopted "an independent posture in conformity with 
our own policies and interests".
The spokesman stressed that "our security compulsions are 
essentially in the framework of India's huge military buildup, 
including its nuclear and missile arsenal, and the increasing 
asymmetry in the conventional field," and said: "We cannot remain 
oblivious to developments in our neighbourhood. The Indian leaders 
have taken a certain position on the CTBT on account of the 
political vacuum there," he observed.
The spokesman said further that there were other important powers, 
including the United States, which had signed the draft treaty but 
not ratified it. "In consideration of our options we will take 
everything into account," he maintained.

Mandela calls for Nuclear free South Asia

ISLAMABAD, May 4: South African President Nelson Mandela made an 
impassioned plea on Tuesday to the leaders of Pakistan and India to 
work for peace and promote nuclear disarmament in South Asia.
"To the democratic South Africa, which ultimately dismantled the 
nuclear arsenal established by apartheid predecessors, 
nuclearization of South Asia is of great concern," Mandela said 
addressing the ceremony at the Convention Centre held to pay 
tributes to him for struggle against racism and apartheid.
Mr Mandela was given a 21-gun salute and an honour guard as he 
alighted from the plane. Formal arrival ceremonies at the President 
House were cancelled because President Mohammad Rafiq Tarar is 
"We call on the leaders of the countries of the sub-continent to 
promote nuclear disarmament and non-proliferation in the region," 
the South African leader said.
KASHMIR ISSUE: Welcoming the Lahore Declaration, President Mandela 
called on Pakistan and India to solve the Kashmir issue through 
talks, saying peace was vital to economic development.
Mr Mandela believed that the leadership of Pakistan and India would 
resolve the issue through dialogue. "We have complete confidence in 
the leadership of India and Pakistan to resolve peacefully the 
issue themselves. And we continue to make that stand because this 
is the subcontinent which has produced capable and experienced 
He hoped that in due course the Pakistan and Indian leadership 
would succeed in solving the issue. He said peace remains the most 
powerful weapon for development. "The absence of peace," he said, 
"can undermine all progress..."
Mr Mandela received standing ovation when he entered the Convention 
Centre with the Prime Minister. The audience again gave him a 
standing ovation when he started the speech. Parliamentarians, 
ministers, diplomats and a large number of people from Islamabad 
and Rawalpindi attended the tributes ceremony for Mandela.
With retirement from the President's office only weeks away, 
Mandela said that South Africa was looking forward for closer 
cooperation with Pakistan. "There are many opportunities for 
profitable economic relations between the two countries."
He said South Africa is reaching to Indian Ocean neighbours to 
revive ancient relations of trade and interaction. "We also look 
forward to closer co-operation with Pakistan within the context."
He also thanked Pakistan for extending cooperation to South Africa 
in technical assistance, human development and education and for 
peacekeeping operations and de-mining. "We would like to pay 
tribute to Pakistan for its humanitarian assistance to the African 
continent...in peacekeeping in Somalia and in de-mining in Angola."
"I would like to put on record, on behalf of all South Africans, 
our great appreciation to the government and people of Pakistan for 
their enduring and unfaltering support for the ideal of a 
democratic, non-racial, non-sexist South Africa."
Pakistan's proud history of solidarity with struggles in Africa 
against colonialism and apartheid, Mandela said, makes it a true 
partner in the "rebirth of our continent," adding that amongst the 
bonds between Pakistan and South Africa is that of a common Islamic 
heritage. "That heritage is a vital thread in our history."
Mr Mandela paid rich tributes to sub-continent leaders, with 
Mohammad Ali Jinnah as hero, whose example inspired his struggle 
against apartheid.
The South African President did not forget the contribution of 
Muslims in the struggle for justice in South Africa. "Many made 
sacrifices so that all South Africans should be free, and we think 
in particular of those who died in detention Babla Saloojee, Ahmed 
Timol, Imam Haron, and Dr Hussein Hafferjee."
He said Pakistan was a vital player in world affairs, especially 
for the cause of downtrodden. "Pakistan's close relations with 
African countries, and her influence in bodies such as the Non-
Aligned Movement, the Commonwealth and the United Nations makes her 
an important partner in this quest for equity and development."
Prime Minister Nawaz Sharif reiterated Pakistan's willingness to 
continue talks with India to settle all disputes including Kashmir.
"We are prepared for the continuation of the meaningful dialogue 
with India in all issues, including Kashmir," the Prime Minister 
said in his speech at a function organized to pay tributes to South 
African President Nelson Mandela.
They also agreed that the recently concluded bilateral agreements 
and the establishment of a Joint Commission," have provided useful 
framework of future cooperation between the two countries."
Nelson Mandela conferred on Prime Minister Muhammad Nawaz Sharif, 
South Africa's highest Civil Award, Order of Good Hope, in 
recognition of his services to peace, progress and democracy.
Nawaz Sharif deeply appreciated," Mandela's strong reference made 
for the settlement of the Kashmir dispute," in his Presidential 
address to the 12th Non-Aligned Movement (NAM) Summit held in 
Durban in September 1998, said the joint statement.-AFP/NNI/APP

PPP to fight for press freedom: Benazir

ISLAMABAD, May 7: Opposition leader Benazir Bhutto has condemned 
the" systematic persecution of the press" and demanded an immediate 
end to harassment and intimidation of journalists.
In a statement issued by the PPP media cell here on Friday, Ms 
Bhutto held out a warning that her party would not allow the 
strangulation of the independent media and would fight for the 
freedom of the press. 
She also urged human rights bodies worldwide to stop the Nawaz 
Sharif government from following its fascist agenda.
" The litany of press bashing is long and shameful. The Islamabad 
daily  The Muslim  was force-closed and hundreds of employees were 
rendered jobless because of financial squeeze applied on it when it 
refused to change its independent editorial policy", she said.
When the Jang Group of newspapers merely reproduced the reports 
published in some leading British newspapers about the involvement 
of Sharif family in corruption, it was made the target of worst 
form of coercion, she said.
The group was denied newsprint despite the Supreme Court order, 
forcing it to reduce the number of pages and borrow newsprint from 
other newspapers, she said and added: " In a brazen show of 
bravado, Senator Saif threatened the proprietor that even the 
father of a judge could not help him if he refused to toe the 
government line."
Ms Bhutto said the publisher, proprietor of  Frontier Post  group 
of newspapers, Rehmat Shah Afridi, was framed in a narcotics case 
because the newspaper had been continuously exposing the corrupt 
mafia in the regime.
" Mr Afridi is on record to have stated how he had received 
threatening calls from Senator Saif and Interior Minister Chaudhry 
Shujaat. He has also revealed that he was asked to frame Senator 
Asif Ali Zardari in a drug case and was warned of dire consequences 
when he refused."
The opposition leader said :" During this week, three shameful 
incidents of press bashing were reported. Hussain Haqqani was 
kidnapped and later charged with false cases for exposing in the 
press the regime's wrongdoings. The car of noted columnist Imtiaz 

Alam was burnt to ashes. Noted journalists M.A.K. Lodhi and Amir 
Mir were threatened for allegedly assisting BBC in the preparation 
of now a famous documentary exposing the Sharif family's 

Partial privatization possible by Dec: Dar
Bureau Report

ISLAMABAD, May 6: The third meeting of Committee of Privatization 
Board of Pakistan (CPBP) held here on Thursday, called for speeding 
up privatization with a view to disinvesting some state units 
latest by December this year.
Informed sources said that the CPBP, which was presided over by 
Minister for Finance and Commerce Ishaq Dar, was of the view that 
partial privatization of PTCL, KESC, HBL and UBL was possible 
before the end of 1999.
It also discussed various impediments in the way of the 
privatization process, with minister for finance saying that the 
government would ensure the privatization of major state-owned 
enterprises during the next financial year. He said that PML 
government wanted the process to be completed with transparency.
The meeting was also informed that road shows for the privatization 
of PTCL in Middle East and Europe will be held shortly. M/S Goldman 
Sachs, which was the Financial Advisor for the PTCL, has already 
been paid 5 million dollars out of 18 million dollar fee to 
disinvest the organization.
The CPBP also reviewed the implementation status of the decisions 
taken in the previous meeting and expressed its satisfaction over 
the progress made.
It discussed the results of the bidding of Federal Lodge Chamba 
House, Lahore, National Tubewell Construction Corporation and 
Pakistan Engineering Company and decided to hold another round for 
the bidding of Chamba House by next month.
The Committee also directed the ministry of water and power to 
dispose of the assets of NTCC in consultation with the 
Privatization Commission.
A committee was formed to negotiate the privatization of PECO with 
the sole bidder. Seven attempts to privatize PECO had not been 
The meeting took note of non-encashment of bank guarantees 
furnished by the buyers of the privatized units. It was decided to 
take stern action against the bank officials who accepted defected 
guarantees to make them accountable.
It was also decided that no government agency should consider the 
rescheduling of relent loans payable by the buyers. The updated 
position of receivables will be monitored on periodical basis.
Ministers for communication, water and power, housing and works, 
the Chairman of Privatization Commission, concerned secretaries and 
other officials attended the meeting.

Wapda defers modernization plan

LAHORE, May 6: Water and Power Development Authority (Wapda) 
appears to has shelved for the time being its gigantic Rs30 billion 
transmission modernization plan.
The plan was meant to improve the quality of the main transmission 
system and avoid colossal losses because of the present system 
which is coming to age.
"The Wapda is concentrating more on overcoming its yawning deficit 
which has shot up to Rs66 billion at present than undertaking 
development projects of mega nature", official sources told Dawn on 
They said Wapda was going flat out to curb power theft and expected 
to bring to an end to this menace to a great extent within a few 
months. Authorities hope that by checking incidence of power 
stealing Wapda could earn around Rs8 billion more on annual basis.
In the meantime the authority continues to provide the facility of 
paying electricity bills in 12 instalments to industrial 
defaulters, who did not pay their power charges for long and whose 
power connections have been disconnected.

Pakistan not certified to export shrimps to US
Shaheen Sehbai

WASHINGTON, May 4: Pakistan has not been certified by the State 
Department to export shrimp to the United States, a list of 37 
certified countries announced on Tuesday shows.
The reason is that Pakistan does not protect sea turtles while 
catching the shrimp which is against the US laws.
Officials said Pakistan, and three other countries, India, Malaysia 
and Thailand, have challenged the US decision in the World Trade 
Organisation (WTO).
The State Department announced its annual list of countries 
certified to export shrimp to the US market under the law which 
allows importation only of shrimp harvested in ways not harmful to 
The department certified 12 countries that require their shrimpers 
to use turtle excluder devices (TEDs) as US shrimpers are required 
to do.
The department certified 25 other countries where the fishing 
environment poses no threat to turtles- nine where shrimpers 
harvest using manual rather than mechanical means and 16 where 
shrimpers harvest only in cold waters where the risk to turtles is 
Five Latin American countries- Costa Rica, Guyana, Panama, 
Suriname, and Trinidad and Tobago- were not re-certified because 
the department found their turtle conservation programmes were not 
being enforced.
The announcement said Thailand, one of the four parties to the WTO 
challenge, was certified while the other three parties - India, 
Pakistan and Malaysia - were not.
Since the May 1998 certification decisions, the law has come under 
challenge. In Geneva a World Trade Organisation appellate body 
ruled in October that, while the US law does comply with WTO 
commitments, the way it is implemented does not. The appellate body 
overturned a lower WTO panel ruling.

The United States has agreed to comply with the WTO appellate body 
decision by December 6, 1999.

Welfare package for labour announced
Bureau Report

ISLAMABAD, May 1: Prime Minister Nawaz Sharif announced on Saturday 
a welfare package for workers on the occasion of International 
Labour Day.
The package envisages a number of facilities to the labourers in 
health, education and social safety sectors.
Under the package Rs50,000 compensation will be given to a worker's 
family in case of his death and 25,000 residential quarters and 
hospitals will be constructed for the industrial workers.
However, the labour ministry, which released the details of the 
package, did not give the financial impact nor identified any 
budgetary provision except saying 
that every thing would be done through the Workers Welfare Fund 
According to the details, the family of a worker will be paid 
Rs50,000 compensation in the event of his/her death.
The WWF will bear all the education expenditure of a worker's child 
who obtains admission in any prestigious institution such as 
Atchison College, Government College, Lahore etc. The entire 
expenses including education fee, tuition fee, books and boarding 
would be paid by through the WWF.
Beside, 2,550 scholarships will be given to the workers children 
for higher education. 
Under the scholarship Rs1,000 will be given at HSC level; Rs1,500 
at graduation; Rs2,000 at masters and Rs2,500 to an engineering 
As many as 33 schools, including 12 in Punjab, 14 in NWFP, 3 in 
Sindh and 4 in Balochistan would be established for the workers' 
The package also envisages construction of 25,000 residential 
quarters for industrial workers. However, no details were given in 
this behalf.
In the health sector, 12 kidney centres, one kidney hospital and 
three general hospitals will be established for the labourers 
throughout the country.
The kidney centre at Islamabad would be completed by November 1999 
and those at Peshawar, Quetta and Karachi by June 2000. The 
construction work at the Institute of Kidney Disease at Lahore has 
started which is expected to be completed by June 2000.
A scheme is being launched for diagnosis of tuberculosis (TB) and 
its treatment for workers and their families.
Another scheme for the prevention of Hepatitis-B will also be 
launched soon, it says.
All these measures, according to the labour ministry, would help 
uplift the economic condition, dignity of labour and quality of 
workers' life.
The government is fully aware of the difficulties of the working 
class, said the ministry of labour. A number of initiatives, have 
been taken in this regard. The biggest initiative, the ministry 
claimed, was to give a progressive labour policy, envisaging 
legislative and institutional arrangements for sustainable 
development, full employment and high standards of life of the 
"The government has already taken a number of steps for the 
amelioration of workers welfare, including introduction of group 
insurance scheme, marriage grants, establishment of kidney centres, 
construction of model schools for workers children, merit 
scholarships for their higher education, residential facilities and 
constructions of hospitals", claims the ministry.
It also said that dropping the first of May from the list of public 
holidays did not aim to effect the workers rights.

Opposition stages token walkout in Senate
Bureau Report

ISLAMABAD, May 5: The combined opposition on Wednesday night staged 
a token walkout from the Upper House to protest against the 
vindictive attitude of the government towards Press, the wave of 
extra-judicial killings in Karachi after the governor's rule, and 
failure of the government to put the Anti-Terrorism (Amendment) 
Ordinance before the House.
The issues were raised by Senator Raza Rabbani following a walkout 
by the journalists.
Led by Aitzaz Ahsan, the combined opposition went out of the Senate 
and returned after the token walkout lasting five minutes.
Earlier responding to the opposition, the Leader of the House, Raja 
Zafarul Haq, said that Information Minister Mushahid Hussain would 
respond to the points relating to Press while Interior Minister 
Chaudhry Shujaat Hussain will reply to the charges levelled by 
Aftab Sheikh about extra-judicial killings in Karachi and also 
about the arrest of Hussain Haqqani.
About the wave of self-immolations and suicides in the country, 
Raja Zafarul Haq said that on the basis of what he had gathered 
from newspapers, 80 per cent of the cases pertained to personal 
reasons while a few had taken place due to financial difficulties. 
He said efforts were being made by the government to revamp the 
system of Zakat.
The Leader of the House said that Press should have the freedom of 
expression. He said there should be evidence whether or not the 
government was involved in taking vindictive actions against 
journalists. He said he would ask the information minister to 
examine the alleged cases of excesses and take action to redress 
the complaints.
The presiding officer, Akram Zaki, took up the item pertaining to 
debate on the President's Address. Maulana Fazal Mohammad and Zarif 
Khan Mandokhel took part in the debate.
JUI's Maulana Fazal Mohammad criticized the President for the 
defending the "ill-advised" policies of the government. He said the 
President had praised the government for bolstering the defence of 
the country's borders. He said the fact of matter was that the USA 
had violated Pakistan's airspace for two hours when it fired 
missiles into Afghanistan on the garb of punishing Osama bin Laden.
He said that instead of reacting to the violation, the government 
kept quiet and did not react to the violation. The Senator used 
strong words to describe the USA.
Mr Zaki expunged the remarks after Parliamentary Affairs Minister 
Yasin Wattoo drew his attention to it, but the Senator repeatedly 
used the words "rascal state" for the USA.
The JUI representative criticized the government for handing over 
Aimal Kansi to the USA in order to appease the Americans and added 
that the rulers were paying only lip-service to the CA-15. He 
accused the government of being an agent of Jews. Senator Zarif 
Khan Mandokhel defended the government policies.

New setup planned to regulate city transport

KARACHI, May 5: All public transport in the city would be regulated 
through directorates to be constituted shortly under the newly-
established Karachi Metropolitan Transport Authority.
Well-placed sources told Dawn that it had been decided by the Sindh 
government that separate directorates would be set up to regulate 
the transport in the city and their number was now being finalised.
These two directorates would include the Public Mass Transport 
Administration and the Traffic Engineering Bureau which would be 
headed by officers specializing in their respective fields.
Since the regional transport authority, which is headed by the 
commissioner, has ceased to exist, all functions rendered by the 
body would now be performed by the Public Mass Transport 
Though, the sources added, with the issuance of a notification by 
the Sindh chief secretary on Tuesday declaring the establishment of 
the Karachi Metropolitan Transport Authority the chairman of the 
regional transport authority has become a member of the KMTA 
governing body, the commissioner Karachi would continue to work as 
RTA chairman until a summary about the new organisational setup, 
which include the setting up of directorates, was approved by the 
The Sindh transport department, the sources said, was at present 
inviting nominations from the government and others to finalise and 
notify the composition of the KMTA governing body.
The sources added that besides government departments, two 
representatives of senior and notable citizens and two of private 
transport operators would be on the governing body.
More importantly, the sources added, the KMTA bill, which has 
already been introduced in the Sindh assembly and has generated a 
lot of debate, would become a test for Sindh governor Moinuddin 
The bill, after its ratification by the Sindh assembly, will have 
to be signed by the governor to become a law. The Sindh governor 
has not signed a single bill referred to him by the legislature 
since the imposition of governor's rule on the province.
But in the case of the KMTA, the governor would be in a highly 
uncomfortable position as he himself had issued its ordinance.
The sources said the governor could send back the bill to the 
assembly for re-consideration, but once the assembly re-referred 
the bill to the governor it would automatically become a law after 
10 days even if it was not signed by the governor.
As for the handing over of the Karachi Mass Transit Project to the 
Karachi Metropolitan Transport Authority, the federal government's 
ministry of communication and the National Mass Transit Authority 
had been sent reminders.
These sources added that the Sindh government had again approached 
the federal government saying that since the governor had issued an 
ordinance for the setting up a metropolitan transport authority, 
the mass transit project needed to be handed over to the authority 
for its implementation at the earliest.

Govt bracing to manage rupee float
Haris Anwar

KARACHI, May 6: Pakistan is bracing to manage float of the rupee 
from the coming budget, disbanding fixed parity to the intervention 
currency, the US dollar, official sources said.
Unification of the composite and official rates will have to be 
discontinued, and the Floating Interbank Rate (FIBR) would be used 
for all official and private transactions.
According to these sources, dollar-rupee exchange rate would be 
determined by the supply and demand of US dollar in the interbank 
"Our estimates are that rupee will move within 5-7 per cent trading 
band. And if rupee crosses this band, the SBP will intervene in the 
market to bring back the exchange rate within the fixed band," an 
official said.
Sources further said the government is expected to request the 
International Monetary Fund to provide a credit line to the Central 
Bank to keep the exchange rate stable.
The government will have to keep a room for the rupee fluctuation 
in the debt servicing estimates as all capital account transactions 
would also be shifted to FIBR, they added. In the wake of economic 
sanctions by major donors after last year's nuclear tests, 
government had introduced New Exchange Rate Mechanism (NERM), based 
on two-tier exchange rate system - official rate and composite 
The composite rate is a mix of pre-specified official rate and 
market determined floating interbank rate. The latest ratio of the 
mix is 5:95.
This ratio shows that all current account transactions have almost 
moved to FIBR as official rate's component is only five per cent.
But official exchange rate, which is Rs46 to the US dollar, is 
still used for the import of wheat and POL products, debt servicing 
and conversion of foreign currency accounts into rupee.
According to the Policy Framework Paper, signed with the 
International Monetary Fund, the government has to do away with 
multiple exchange rate system by introducing unified exchange rate 
from 1999-2000 budget.
Bankers and financial analysts say that the impact of managed float 
on the economy would not be inflationary as almost all current 
account transactions have been shifted to FIBR.
"The new mechanism would definitely hit the banking sector due to 
possible immediate conversion of FCA's into rupees", said a banker.
"The prevailing calm in open market may disappear as majority of 
these converted deposits will find their way into the kerb market 
as happened in the past," he added.
He said the pressure on the kerb rates was likely to increase as 
converted FCAs in the past were used to buy dollars from the open 
"But the Central Bank will intervene heavily to make sure that 
floating rate remains stable after unification of the exchange rate 
and premium in the kerb market does not rise," another banker said.
FCA-holders were maintaining about $4.79 billion by end March out 
of total $11 billion FCAs in order to realize better conversion 
rates. These accounts were frozen in May last to preserve depleting 
foreign exchange.

State Bank injects Rs6.05bn in money market

KARACHI, May 6: The State Bank on Thursday injected Rs6.05bn into 
inter-bank money market by purchasing treasury bills of one week 
and one month maturity from banks but it could not ease off the 
liquidity crunch.
Senior bankers said SBP bought Rs1.05bn worth of TBs with one week 
to maturity at 10% and Rs5bn worth of TBs with one month to 
maturity on 9.25% in a reverse repo. 'But despite the injection of 
Rs6.05bn the market continued to feel the liquidity crunch,' said 
treasury manager of a major private bank.
He said call rates oscillated between 12-13% without witnessing the 
slightest fall after the injection.
Bankers said what prevented the liquidity crisis from easing off 
despite the injection was that some banks had diverted excessive 
liquidity into cash reserves in anticipating that they might not be 
able to maintain the reserves at the required level on Friday.
On April 15 SBP had pumped in Rs4.810bn in inter-bank market by 
buying TBs with one week to maturity at 9% and TBs of one month to 
maturity at 8.50%. 'This time the SBP has increased the rates which 
does not get along with its policy of lowering interest rates,' 
commented treasurer of a foreign bank. He said SBP lending on 
increased rates had an impact on the market and one-month funds 
changed hands at 10.5%.
Senior bankers close to State Bank linked the increase in the 
yields on TBs to the fact that some state-run banks got panicky and 
fearing the liquidity crisis to deepen submitted higher bids.
They said the main concern of SBP was to inject money in the market 
which it did signalling to the banks that SBP was there to ensure 
that the market maintains a certain level of liquidity.

N-scientists evolve three new cotton varieties

KARACHI, May 6: Pakistani nuclear scientists working on discovery 
of new varieties of seeds for different crops and fruits have 
succeeded in inventing three new varieties of cotton which, they 
estimate, could enhance the yield by 50 per cent.
This was disclosed by Dr Samar Mubarakmand in a recent meeting with 
the government officials held in Islamabad. He further said, "the 
new varieties are completely virus resistant and have the 
capability to give more yield as compare to old varieties."
He informed the meeting that three varieties have been sent to 
Punjab Cotton Seed Corporation for certification and the moment we 
get certification, the varieties would be available to the selected 
farmers for multiplication of the seed.
The names of new varieties will be suggested after the 
certification of seeds from the Cotton Seed Corporation, he added.
Giving details of the new varieties of cotton, Dr Samar said that 
size of bulb in new varieties are much bigger than the old ones and 
it bears 25 per cent more bulbs as compared to the varieties like 
Nayab 78 and Nayab Kirishma.
He said that around 30 per cent of our cotton yield is damaged due 
to virus attacks but with new varieties, it would be possible to 
save the loss. We did lot of experiments to check resistance in new 
varieties against virus attack and added that first of all, we 
sowed new varieties among the virus affected cotton plants. Dr 
Mubarak said, surprisingly, not a single sapling caught the virus. 
On the second stage, he said we grafted the tissues of virus-
affected plants into the new varieties and again the result was 
encouraging as not a single plant got affected.
Four nuclear research centres were established in 1963 for the 
purpose of discovering new varieties of crops and fruits. One of 
these centres is doing research in genetics.
In 1983, new cotton variety 'Nayab 78' was introduced which 
enhanced the cotton production from three million bales to eight 
million bales. Similarly, he said, in 1996, another variety 'Nayab 
Kirishma' was introduced which further enhanced the production.

Accord for making 750cc car signed
ISLAMABAD, May 5: Pakistan and Tataristan on Wednesday signed an 
agreement for manufacturing of 750 cc car 'OKA'.

According to the agreement signed between the governments of 
Pakistan and Tataristan, a 750 cc car 'OKA' would be manufactured 
in Pakistan.
The low-price car will be manufactured under a joint venture 
between a Tataristan company UAZ and PACO of Pakistan. It is a two-
door family car, perhaps one of the cheapest in the world. 
According to the agreement, its manufacturing and marketing would 
start within six months.
Besides, the two companies would undertake a joint venture of 
manufacturing trucks and buses, an official said. It is expected 
that the marketing of these heavy vehicles will bring a relief for 
passengers and goods in the country.
Finance Minister Ishaque Dar and Tataristan First Deputy Minister 
Ravil F. Muratov signed the agreement in presence of prime minister 
Muhammad Nawaz Sharif, Foreign Minister Sartaj Aziz and chairman 
Board of Investment, Humayun Akhtar.
Earlier, the deputy prime minister of Tataristan alongwith his 
delegation called on prime minister Muhammad Nawaz Sharif, where 
the accord was finalized and other matters of interest, including 
investment opportunities in Pakistan, were discussed.-APP

NWFP to abolish zila tax, octroi next fiscal
Intikhab Amir

PESHAWAR, May 4: In the light of a decision taken at the Inter 
Provincial Coordination Committee meeting on Monday, the NWFP 
government has decided to do away with the collections of octroi 
and district export tax from the next financial year, provincial 
minister for local government and rural development Yousuf Ayub 
Khan told Dawn here on Tuesday.
"We would stick to the agreement reached between the Centre and the 
four provinces at the IPCC meeting hence there will be no 
collection of zila tax and octroi in the province from the start of 
the next financial year," said the provincial minister.
When asked about the reservation, the NWFP government has been 
showing over the issue, the minister said that " we would ensure 
that the province gets finances in accordance with its due share 
every month".
The commitment on the part of the provincial government to 
implement the IPCC decision, in letter and spirit, from the next 
financial year came at a meeting between the NWFP chief minister, 
Sardar Mehtab Ahmed Abbasi and the local government minister Yousuf 
Ayub Khan, here on Tuesday.
The local government minister also presided over a departmental 
meeting to discuss the issue for devising a system to do away with 
the octroi and district export (zila) tax.
Under a policy decision, said the minister, the local government 
department's authorities had been directed to immediately cancel 
the process of awarding contracts for the collection of octroi and 
zila tax (for the current financial year) where these were in the 
"The advertisement issued for the award of contracts stand 
nullified," said the minister.
According to sources, the local government department had been 
asked to prepare details of the zila tax and octroi revenue 
generated from across the province on the basis of which province's 
share under the national collections of GST would be calculated.
"The move would surely help to put an end the miseries people were 
used to undergo due to maltreatment by the contractors," said the 
minister, adding "similarly, it would also get the provincial 
governments rid of the contractors who have become so much powerful 
and influential that they always exploited the situation in their 
favour leaving no room for the new comers to flourish in the 
When asked that how the provincial government would ensure timely 
and full releases on account of GST from the Centre while it was 
receiving net hydel profits and share from the federal divisible 
pool much lesser than the NFC projected figures.
The minister said "we have agreed to the IPCC decision in the best 
interest of the people and we would surely make ensure that the 
province should get the amount it was raising under the two heads 
and be made monthly instalments at time".
According to him, the provinces would get a raise of ten per cent 
every year over and above the amount they used to collect from 
their respective domains on account of octroi and zila tax.

Income Tax laws for bureaucrats to be amended, says Dar
Ansar Abbasi

ISLAMABAD, May 4: Finance minister Ishaq Dar announced on Tuesday 
that the government will amend the law to make public the income 
tax details of parliamentarians and senior bureaucrats in grade 20 
and above.
"We are currently considering different aspects of this proposal 
which will become part of the finance bill for the year 1999-2000," 
Dar said, adding, "this is being done to bring more transparency in 
our political and bureaucratic culture." Dar made this announcement 
in the Senate during question hour.
He informed the house that every year the Central Board of Revenue 
will make public a directory containing the income tax details of 
the parliamentarians and senior bureaucrats in grade 20 to 22.
"The existing law will be amended to make a perpetual change where 
it would be mandatory to make these details public," the minister 
Responding to PPP's Iqbal Haider's question regarding the 
publication of directories of income tax and wealth tax 
payers/assessees for the assessment years 1996-97 and 1997-98, the 
minister said, a task force was currently deliberating various 
alternatives and options on this issue.
The minister said that the government had received a number of 
requests, particularly from Sindh, from business tycoons, traders, 
industrialists etc that their tax details should not be made public 
to avoid kidnappings, hijackings and threats to their lives from 
criminal and disgruntled elements.
He, however, said that the task force will formulate its 
recommendations to this effect, after studying the approaches 
followed in this regard by countries similarly placed as Pakistan.
The minister urged that there was a need to broaden the tax net to 
generate more and more revenues. "Currently less then 1 per cent of 
population in Pakistan is income tax assessees which include 
300,000 who pay almost nothing," the minister disclosed.
The minister, however, indicated that the government was 
contemplating different measures to broaden the tax net. The 
setting up of Pakistan Revenue Authority and Pakistan Revenue 

Service aimed at revamping the whole tax collecting machinery, 
would be a major step in this direction.
The minister agreed that there was massive tax evasion in the 
country and there was need for multi-facet approach to check this 
trend in the society.
To another question, the minister gave the following details about 
the income tax and wealth tax collection during the year 1996-97 
and 1997-98. During 1996-97 the income tax collection was Rs 80 
billion while the wealth tax collection was Rs 2.4 billion. During 
1997-98, the income tax collection was Rs 97.1 billion and the 
wealth tax collection was Rs 3.5 billion.
The customs duty collected during 1996-97 and 1997-98 was Rs 86.1 
billion and Rs 74.5 billion respectively.

Fishermen threaten to sink trawlers of US firm
Nasir Malick

LONDON, May 3: Pakistani fishermen and politicians in Balochistan 
have threatened to sink the ships of a United States company if it 
proceeds with plans to start fishing in the area, The Guardian 
newspaper reported on Monday.
The paper said that the fishermen and Pakistani politicians in 
Balochistan are opposed to a $450 million contract awarded by the 
Muslim League Government to US-based company Forbes and Co to use 
up to 100 trawlers to take 400,000 tons of fish annually from 
Pakistan's territorial waters for the next 30 years.
The trawlers are expected to start deep-sea fishing later this 
year, after feasibility and environmental studies are done, the 
paper said adding that the deal has met widespread opposition in 
the Balochistan Assembly, with some members warning that any 
trawlers entering Pakistan's waters will be sunk.
It said the fishermen, politicians and environmentalists have 
accused the federal government of failing to take into account the 
devastating impact they believe the trawlers will have on local 
fishermen, the local economy and the marine environment.
"For us it's a matter of life and death," the paper quoted Akber 
Ali Rais, a representative of the fishermen in the port town of 
Gwadar as saying. "If the American company comes here and starts 
fishing, we will not survive,' he said. 'There will be nothing left 
for us. Our small boats cannot compete with them".
Several hundred thousand people living along Pakistan's coast are 
dependent on the fishing industry. Many fishermen still use 
traditional wooden boats with no modern communications or sonar 
The paper said that the government claims that no jobs were at risk 
because the US trawlers will have to remain more than 20 miles off 
"Officials see the deal as an easy way to bring in foreign currency 
and foreign-funded infrastructure. They hope to sign contracts with 
other international firms," the paper said and quoted Hamayun 
Akhtar Khan, Chairman of the Board of Investment as saying that 
Pakistan could earn more than $1.0 billion from this sector by 
allowing foreign companies to fish in Pakistani waters.
"This is a totally untapped sector in Pakistan and we firmly 
believe there is huge potential in it for us. We have companies 
from China, Spain, the Gulf countries which are also actively 
considering projects.," the paper quoted Hamayun Khan as saying.'
The paper said that in order to soften the opposition from local 
fishermen, Forbes is to invest in modernizing Pakistan's fishing 
industry and set up a technical training institute.
It quoted a Forbes spokesman as saying that about $300 million out 
of $450 million on under the contract would be spent on improving 
infrastructure, including developing a fishing port and building 
canning and processing plants, cold storage facilities and an ice-
making plant.
All the fish caught by the company will have to be processed at 
these plants before being exported to Europe and the US. The firm 
says it will be providing direct employment for 3,000 people and 
indirect employment for 7,000 more. It claimed that 100 trawlers 
fishing in such a vast area would not deplete stocks.
However, Parvaiz Naim of the World Conservation Union has opposed 
the contract and quoted as saying that: "Forbes's main focus will 
be the Balochistan coast, and the maximum exploitable potential 
[fish catch] is 300,000 tons per annum. Local fishermen are already 
harvesting 100,000 tons, so if the company takes away 400,000 tons 
of fish, that means the exploitation is 200,000 tons more than the 

Sri Lanka looking for Pakistan tea markets

COLOMBO, May 2: Sri Lanka is offering a free trade deal to 
Pakistan, hoping the move will encourage Pakistanis to drink more 
of its tea and help salvage the slump-hit commodity, government and 
industry officials said.

Sri Lanka's legendary tea, better known by the country's previous 
name Ceylon, is suffering from devastating price drops in the world 
The problem has been compounded by an increase in production and 
the troubles of the trade are already being felt in the economy by 
way of sharply falling exports, declining foreign reserves and 
slower growth.
For Sri Lanka, the challenge is to recapture the Pakistan market, 
which is expected to become the world's largest consumer of tea 
within a decade by pushing Britain and Russia to second and third 
"Pakistan is one of our best hopes to get the market out of the 
present problems," said Hasitha de Alwis, director at the Sri Lanka 
tea promotion bureau, which is planning a visit to Islamabad this 
De Alwis said Sri Lanka exported 30 million kilos of tea to 
Pakistan in 1980 and became the largest single exporter then. The 
picture is very different now.
Pakistan retail stores are flooded with Kenyan tea, which accounts 
for 45 per cent of the market, while Sri Lanka's share has dwindled 
to an abysmal three per cent.

The tea industry here hopes to regain lost ground through a 
bilateral free trade agreement recently proposed by Sri Lankan 
President Chandrika Kumaratunga.
Sri Lanka hopes that the treaty will ensure tariff concessions to 
tea, making Ceylon more competitive against the cheap Kenyan teas, 
and also allow Pakistan to increase its exports to this Indian 
Ocean island.-AFP

KSE index recovers another 23.69 points

KARACHI, May 7: Massive activity in Hub-Power followed by strong 
speculative foreign support highlighted the trading on the stock 
market on Friday where other blue chips were also actively sought. 
The KSE 100-share index recovered another 23.69 points at 1,152.87.
News that a delegation of the company led by its chairman Sheikh 
Muhammed A. Alireza will meet the WAPDA chief in Lahore on May 10 
to resolve outstanding issues including relating to cut in power 
tariff was said to be the main driving force behind the current 
run-up and massive activity.
'The perception that the meeting could be positive and the long-
drawn issue, which has taken steam out of the market, could be 
resolved amicably, inspired a good bit of confidence who made an 
extensive covering purchases at the current lower levels', analysts 
After having fallen from its career-best level of Rs 65.00 when the 
current tariff cut row started last August to Rs 7.65 at one stage, 
the share of Hubco appears to be heading for big rebound in the 
sessions to come on the strength of speculative support based on 
perception of a possible agreement on the issue.
'There is loud whispering in the rings that broad outlines of the 
agreement have already been agreed and the meeting is a formality', 
some brokers said.
The KSE 100-share index ended with a fresh gain of 23.69 points at 
1,152.87 as compared to 1,130.60 a day earlier, reflecting the 
strength of leading base shares, notably PTCL, PSO and Hub-Power.
The market capitalization also rose to Rs 312 billion from the 
previous 308bn as heavily capitalized shares maintained their 
upward thrust.
'It was largely the strength of Hub-Power on perception of an early 
settlement of the tariff and other issues, which took the entire 
market virtually by storm as there were more buyers than sellers,' 
stock analysts said. It turned out a massive activity of 78m 
shares, more than a half of the total volume as investors were not 
inclined to miss it at the ruling price.
At one stage it was quoted as higher as Rs 19.55 as compared to the 
overnight close of Rs 17.95 as sellers withdrew to the sidelines on 
predictions that the current price flare-up could be sustained on 
the strength of developing situation on the IPP issue, they added.
'The foreign speculative buying though essentially selective was so 
strong that it neatly woven the locals into its deceptive network', 
said a leading broker, adding 'even jobbers, and short-term dealers 
were not inclined to take profits at the rising prices, which is 
generally the hallmark of the weekend session.'
The presence of strong foreign support amid rumours to hostile 
takeover bids and shortage of floating stock on some counters 
continue to fuel the current run-up, although it was not backed by 
the objective economic background news. Adamjee Insurance, which is 
said be under a near-squeeze by a leading foreign company to grab 
its floating stock to put two or three directors on its board 
maintained its upward drive for the last over a week and was quoted 
at Rs 72.10, gaining Rs 20.00 during the week.
Prominent gainers were led by Adamjee Insurance, Gadoon Textiles, 
Bannu Woollen, Cherat Cement, PSO, Shell Pakistan Ghandhara and 
Engro Chemical, which posted gains ranging from Rs 1.50 to 4.40, 
the largest being in PSO.
Losses on the other hand were fractional barring Lever Brothers, 
Shaheen Insurance, Lafayette Industries, Cherat Paper and Salfi 
Textiles, falling by one rupee to Rs 5.00. Trading volume soared to 
165m shares from 135m shares a day earlier as gainers maintained a 
fair lead over the losers at 70 to 40, with 42 shares holding on to 
the last levels.
Hub-Power topped the list of most active scrips, up Rs 1.20 at 
Rs19.15 on 78m shares followed by PTCL, higher 40 paisa at Rs 20.80 
on 39m shares, PSO, sharply up by Rs 4.40 at Rs 103.25 on 11m 
shares, Fauji Fertiliser, lower 25 paisa at Rs 55.25 on 9m shares, 
and Adamjee Insurance, higher Rs 1.40 at Rs 72.10 on 5m shares.
Other actively traded shares were led by ICI Pakistan, easy five 
paisa on 3.0866m cheers followed by Dewan Salman, lower 30 paisa on 
2m shares, KESC, up 30 paisa on 3m shares, D.G.Khan Cement, firm by 
10 paisa on 1.694m shares, FFC-Jordan Fertiliser, firm five paisa 
on 1.157m shares and LTV Modaraba, up 40 paisa on 1.056m shares.
DEFAULTING COMPANIES: Active trading was witnessed in Ravi Rayon, 
which rose by 25 paisa on 9,500 shares followed by Mian Textiles on 
DIVIDEND: Novartis Pakistan and Novartis Pharma Pakistan, nil owing 
to aftertax losses of Rs 358.923m and Rs 175.850m respectively for 
the year ended Dec 31,1998.

Back to the top
Betrayers of our trust
Ardeshir Cowasjee

WHO amongst us has any doubts that a good majority of the lot who 
sit in our parliament, on either side of the divide, are but 
betrayers of our trust?
On the federal front, we have one bunch chaired by the Senate 
Chairman, Wasim Sajjad, a Rhodes scholar to boot, and the other 
bunch controlled by the Speaker of the National Assembly Illahi 
Bakhsh Soomro. When any mention is made of how our money is wasted 
and mis-spent, each and every one claims that it is his/her 
'entitlement' to do so, such is the benefit of holding elective 
office. But it is the leaders in power who are the real big 
spenders, the squanderers of the national wealth, who without shame 
or remorse set about emptying the exchequer.
For starters, let Chairman Sajjad and Speaker Soomro publicly 
declare how many times they have gone abroad leading parliamentary 
delegations, and whilst Sajjad is doing his sums, let him also 
declare how many times and with how many friends and relatives he 
has taken off in the presidential plane each time he has been the 
acting president of the republic (when last acting as president he 
flew to Karachi to condole with Hakim Said's family following that 
good man's murder).
As for 'entitlement' and 'discretion,' we can do no better than to 
read what Senator Shafqat Mahmood wrote in a Karachi daily 
yesterday on the subject of Mian Nawaz sharif, former chief 
minister of Punjab, and twice our prime minister:
"When he was, in his own words, the Prince of Punjab, his executive 
style was reminiscent of a medieval lord rather than a modern chief 
executive of a Third World poverty stricken province. He increased 
his discretionary grant - spending money given to the Chief 
Minister by the provincial treasury - from Rs one lac to Rs 9 
crores per annum. And this he distributed with gay abandon. I was 
then Additional Secretary Finance in the Punjab, and the details of 
his expenditure passed through my hands. He would go around with 
pockets full of money. If a waiter served him well in a restaurant, 
he would give him a twenty thousand rupee tip. A barber who pleased 
him would get Rs one lac. The Lahore Gymkhana pavilion attendants, 
where he played cricket, got similarly large amounts. All, we must 
remember, state money not his own.

"Many of you may think that I cannot be serious. Believe me, I am. 
The records are available in the Finance Department of the province 
for all to see. There were thousands and thousands of entries to 
nameless, faceless people who had caught his fancy for one reason 
or another. He was munificent and large-hearted. He gave and gave. 
There is no doubt in my mind that he enjoys dispensing these 
favours. He was equally large-hearted with state land. Hundreds, 
indeed thousands, were given plots not only in Lahore but in 
Rawalpindi and many other cities of the provinces. Most of these 
were legislators, including many who are now luminaries of his 
cabinet and his party. But, this generosity was not confined to 
them. Many others, including social acquaintances, civil servants, 
and personal attendants were the lucky beneficiaries."
The case of Mian's plots was to be heard by the former Chief 
Justice of Pakistan, Sajjad Ali shah, when his court was stormed by 
Mian's supporters on November 28, 1997, and has since then been put 
into cold storage. When and if it does emerge, we must hope that 
Shafqat Mahmood is still with us to give evidence.
Now for the good news. The nation, for over a decade now, has been 
in the stranglehold of two gangs of marauders who have alternately, 
systematically worked to our detriment. This time around, Nawaz 
Sharif, the man in power, for no better reason than to perpetuate 
his power and to survive, has seriously embarked upon bringing to 
book the opposing team led by Benazir Bhutto and husband Asif 
Zardari. He has done so at the risk of setting a precedent which 
will work to his disadvantage but to the long-term advantage of the 
country. He has set in motion the process of accountability.
This onerous task he assigned to one of his princes of darkness, 
himself a defaulter (technical or otherwise), the efficient and 
likeable Senator Saifur Rahman, who hails from the Mian's home 
town, the principality of Model Town. Saif has worked hard and 
This week I was in Islamabad and was invited to Saif's Bureau to 
see for myself the evidence that has been collected against the duo 
and presented in court. It would even make Ali Baba blush.
The Swiss survive on their strict banking security and on the good 
reputation they enjoy. They have no love lost for Nawaz Sharif or 
for Saifur Rahman and would never risk jeopardizing their hard-
earned reputation for either them or for a country such as 
Pakistan. Saif collected sufficient evidence against Benazir Bhutto 
and against the Swiss Schlegelmilch to convince them of dirty 
Jens Schlegelmilch is an old family friend and attorney. He was 
around in Zulfikar Ali Bhutto's time laundering the 4 million 
dollars sent by Qadhafi for the victims of the earthquake at Besham 
in our Northern Areas. He was also around to attend Benazir 
Bhutto's wedding at Karachi in 1987.
Saifur Rahman's evidence motivated the Swiss government to act and 
search their own sanctum sanctoriums, to freeze accounts and 
properties. For instance, an excerpt from a letter dated September 
3, 1998, written by Judge Daniel Devaud, examining magistrate of 
the republic and Canton of Geneva to The Competent Magistrate, 
Islamic Republic of Pakistan, regarding PPNP/11105/97 - Ms Benazir 
"1. Exhibits attached to the rogatory requests in relation to Mr 
Ali Zardari and Ms Benazir Bhutto - Documents 1 and 2 come from a 
house search at Mr Jens Schlegelmilch's place; - Document 3 is the 
minutes of a hearing; - Document 4 comes from a bank search in 
Geneva on one of Bomer Finance Inc's accounts; - Document 5 is a 
photocopy of the set of jewels (parure) remitted by the Geneva 
attorney of the jeweller; - Documents 6 to 9 come from a search in 
Geneva at Cotecna SA; - Documents attached under No.10 come from 
searches in Geneva at Cotecna SA and SGS SA.
"2. Picture of the set of jewels (parure): Please find enclosed a 
colour picture of the set of jewels seized in Geneva, picture taken 
by our Judicial Identification Department.
"3. Ownership of the set of jewels: The person who provided the 
information in relation to the purchase of the set of jewels in 
August 1997 was the attorney of the London jewellery shop."
The jewellery transaction has been mentioned in detail by Judge 
Devaud in his International Rogatory Letter, dated August 17 1998: 
"...In particular, in August 1997 Ms Bhutto purchased a set of 
jewellery for 117,000 pounds paid in part in cash in London and the 

balance of 92,000 pounds by bank transfer from the Bomer Account 
(Exhibit No4). The above-mentioned set has been seized in Geneva by 
the undersigned magistrate (Exhibit No5)."
The mind does not boggle. The workings of not-so-clever thieves has 
been chronologically described by Judge Devaud in his letter of 
August 17 1998. Saif's Bureau confirms that any man will be allowed 
to see all the records they have. I have recommended that the 
Bureau publish the documents in the form of a 'Yellow Paper.'
With the evidence they have, if Nawaz Sharif and Saifur Rahman fail 
to convict Benazir Bhutto and Asif Zardari, and all their frontmen, 
and ensure their permanent removal from the country's political 
scene, they shall stand guilty in the people's court.

The Suhartoization of Pakistan
Ayaz Amir

HUSSAIN HAQQANI's being picked up by the vigilantes of law and 
order is disturbing because it reveals the growing intolerance of 
the imperial house for any form of dissent. Haqqani may have taken 
political opportunism to rare heights but that is beside the point. 
He was picked up not for his shifting political morality but 
because of his criticism, in print and otherwise, of the imperial 
Earlier Mahmud Lodhi, a Lahore journalist, was held in illegal 
custody for two days and interrogated, ostensibly because of his 
involvement with a BBC team reportedly preparing a documentary on 
the rise and rise of the Sharifs. Yet to be completed let alone 
shown, this documentary-in-the-making has already inspired stories 
in the press dubbing it as an attempt to malign Prime Minister 
Nawaz Sharif because of his brave stand on the nuclear issue. 
Threads in this affair lead back to the ubiquitous Senator Saifur 
Rehman, the unlikely Himmler (unlikely because of his beguiling 
face) of this regime.
Another sign of the times is the new role assumed by the official 
news agency, APP, which is now less a government mouthpiece, its 
traditional role, than a loudspeaker for the first family. Or 
perhaps it is only doing the right thing by reflecting the 
dramatic, and who knows fatal, blurring of lines between the 
government and the ruling family, a late 20th century incarnation 
of Louis XIV's dictum: the state, it is I.
Recently APP ran a lengthy piece saying that Al-Taufiq which is in 
litigation with the first family for money owed to it, had 
approached the London courts after failing to blackmail the prime 
minister into giving it a lucrative building contract in Saudi 
Arabia. "It is reliably learnt," says APP, "that when Hudabiya 
management brought this matter to the notice of the prime minister, 
he refused to compromise on national interest (sic) and rejected 
the proposal for revival of the contract."
Hudabiya , as everyone knows, took money from Al-Taufiq and then 
simply refused to pay it back. The guarantors of this loan were 
Mian Muhammad Sharif, Mian Shahbaz Sharif and Mian Abbas Sharif. 

Al-Taufiq went to court in London and got an order for 32 million 
pounds (or is it dollars?) against the Sharifs. Although the 
Sharifs are not averse to having property in London or to shopping 
at Harrods (a form of relaxation favoured by the prime minister 
during his visits to London), they do not seem to have much of an 
opinion of British justice, which is why they have chosen to settle 
this matter on home ground in the court of Muhammad Nasrullah Khan, 
Civil Judge 1st Class, Lahore.
To be sure, there is a perverse form of consistency at work here. 
The Sharif government prides itself on its 'homespun' policies. 
Perhaps for that reason it also prefers made-in-Pakistan justice. 
Al-Taufiq may be to blame for not having secured its loan. For 
argument's sake it can even be conceded that maybe Al-Taufiq was 
expecting undue favours in return. But none of this obscures the 
fact that the Sharifs took money from Al-Taufiq which they are now 
refusing to pay back. Between debts contracted by mere mortals and 
those taken by a family vowing to turn the country's fortunes 
around there should be some difference. Or would the Sharifs like 
to be judged by the yardsticks applied to common loan defaulters?
In invoking the national interest as far as their dealings with Al-
Taufiq go, the ruling family, however, is relying on a precedent 
first set in 1991. When between them the Ittefaq Group and the 
Chaudries of Gujrat, Pakistan's second most famous enterprising 
family, added their bit to the bursting of the cooperatives' bubble 
(an event otherwise known as the co-operatives' scam), the Ittefaq 
Group issued an extraordinary statement. It said that the Group had 
received a mandate from Mian Muhammad Sharif to industrialize the 
country and it was in pursuance of that mandate that the Group, 
having been denied loans from the regular banking sector (this was 
during Benazir Bhutto's first prime ministership), had opted to 
take loans from co-operative societies.
As explanations go this was brazen because, firstly, the Ittefaq 
Group was not a member of these societies and, secondly, the law 
forbade the societies to advance big loans. But on account of their 
political clout, the Ittefaq group and the Chaudries, and a host of 
other enterprising souls, laid their hands on vast sums of money 
which even if, as in the case of Ittefaq, were subsequently repaid, 
contributed to the collapse of the cooperative societies and the 
loss of about 17 billion rupees (a huge sum in those days) of 
people's money. But then the Ittefaq group's claim that it had a 
mandate to industrialize the country obviously implied that the end 
justified the means. Lingering doubts if any about the laws of 
propriety having been breached were subsequently laid to rest when 
the appropriately-named Justice Lone of the Supreme Court, who had 
been asked to investigate the cooperatives' scam, drew a clean line 
under the affair by absolving Ittefaq of any wrongdoing. Justice 
Lone now sits in the Senate as a member of the ruling party.

More glory to the Sharifs if everything they touch turns into gold. 
No one will grudge them this if for no other reason than that 
Pakistan has always been a happy hunting ground for all kinds of 
financial adventures which would be well nigh impossible to execute 
in better-regulated countries. It is the Sharifs being in power at 
the same time which is a cause for concern because this marriage is 
distorting the nature of our polity and subverting what there is of 
our sham democracy. For democracy to function in a country like 
ours needs enlightened, tolerant and broad-minded rulers in the 
mould of Jinnah. If that is asking for too much, at least leaders 
who, whatever their other faults, do not mix private advantage with 
the public interest. Otherwise if tolerance towards political 
robber barons is to be the norm, what was wrong with Benazir Bhutto 
and Asif Zardari? If the country's fate is to have pirates for 
rulers, what does it matter who is at the helm?
Nawaz Sharif was voted into power for two reasons. The people were 
heartily sick of the Zardaris and they believed that Nawaz Sharif 
would usher in a modern, industrial revolution that would better 
their lives. Far from delivering on this promise, he is presiding, 
unwittingly for the most part, over a process leading to the 
Suhartoization of Pakistan. This is turning an already 
retrogressive republic into a mediaeval monarchy in which the king 
is not only synonymous with the state. He is also infallible and 
can do no wrong. Naturally, dissent or opposition of any kind is 
not only wrong but downright scandalous in this dispensation. 
Historians will have a hard time figuring out which is the more 
dangerous thing: conscious evil or simplicity carried to such 
What adds to the sense of infallibility, or indeed to a sense of 
predestination, is the unbroken run of luck Nawaz Sharif has had 
for the last 18 years: obstacles crossed, oppositionists 
vanquished, one success followed by another more dazzling. The 
titans of martial law who helped the Sharifs in their rise to power 
have vanished into the shades. Ghulam Ishaq Khan who thought so 
much of himself is chewing the cud of bitterness in the wings. 
Benazir Bhutto and Zardari caught in the depths of despair. 
Leghari, Sajjad Ali Shah, Jahangir Karamat: the list of nemeses 
destroyed is long and distinguished. No wonder Prime Minister Nawaz 
Sharif himself says, and his associates fervently echo the line, 
that the Almighty has probably reserved Mian Nawaz Sharif for the 
performance of some great work. Between this and the divine right 
of kings the distance is small.
Authoritarianism in its many forms Pakistan is familiar with. The 
pauperization of democracy too it knows. But family domination of 
the kind being seen today is a new phenomenon, one without any 
parallels, in its storm-and-thunder history.

The view from the top

Irfan Husain

RECENTLY, I received an e-mail from a reader in cyberspace who said 
he understood the mechanics of political corruption in Pakistan, 
but was trying to work out the motivation behind it. He then 
launched into a long behavioural explanation that ranged from 
inherited genes to upbringing.
My own explanation, based on 30 years in government, including a 
couple of years in the PM's secretariat in the mid-seventies, is 
far simpler: once in the saddle, our rulers become so drunk with 
power that they truly believe nobody can remove them. Without 
exception, they place so much reliance on the bureaucracy, and are 
so dazzled by the pomp and glory associated with supreme authority, 
that they become completely cut off from reality. Surrounded by 
sycophants who tell them what they want to hear, and shielded by 
intelligence agencies that rigorously filter out the truth, they 
are convinced that all is well until the axe falls. Seldom reading 
newspapers, they attribute negative comments to opposition 
misinformation. The state-controlled radio and TV reinforce the 
impression that all is well.
The irony, of course, is that when these very leaders are out of 
office, they perceive very clearly the pitfalls of power. But 
almost immediately after being sworn in, they seem to forget all 
the lessons they learned and fall into the same trap. They begin 
believing radio and TV, as well as the daily intelligence reports. 
These latter are in reality a contradiction in terms as their 
content is anything but intelligent. A compendium of gossip, 
newspaper comment and field reports, they lack analysis and 
substance. The party hacks and handpicked bureaucrats in the PM's 
secretariat are not the people to risk their jobs by giving free 
and frank advice. When I accused an old friend who was a very close 
adviser to Benazir Bhutto of shirking his responsibility by not 
telling her the truth, he said he'd be sacked and would then be 
even less effective.
I suppose all of us find reasons and rationalizations to justify 
taking the path of least resistance. But it is a function of 
leadership to seek good and honest advice. Unfortunately, our 
leaders prefer the ambience of a Moghul court where only the king 
can be right. This reminds me of the courtier who sang the praises 
of aubergines because his liege lord preferred them to all other 
vegetables. After he died, his successor decreed that he hated 
aubergines, and they should never be served at his table again. 
"You have such impeccable taste, sire", said our courtier. "They 
are revolting things indeed." Later, a colleague reminded him how 
he had professed to love them until only a few days ago. "Fool!" 
replied the courtier. "Do I serve the king or the aubergine?" Just 
so, a Capital Development Authority chief will produce a hideous 
neo-Moghul design for a prime ministerial office for Nawaz Sharif 
in his first stint, and then agree with Benazir Bhutto that it was 
truly awful. This weak-kneed sycophancy is rife in our power 
centres and prevents open and frank discussion and debate from 
taking place. But this is a reflection of what I call the "ji 
hazoor" ("yes sir") syndrome that is part of our culture. Watch any 
discussion on TV, and you will rarely find people disagreeing with 
each other. Behind people's backs, of course, we tear them to 
shreds, but prefer not to confront anybody directly.
When politicians assume control of the levers of power, they become 
convinced that no ordinary mortal - unless he is in uniform - can 
possibly remove them from office. Their rivals look like pygmies 
when compared with the might of the state, so leaders assume that 
they cannot be turfed out. Confusing government with the state, 
they cannot imagine that the latter can turn against them.
Shortly after he announced the dates for the fateful 1977 
elections, Bhutto was asked by an American journalist how he saw 
his future. The assumption was that he would easily win the next 
election. "Do you think you'll want a third term?" Bhutto replied: 
"I can't see beyond two terms. The Bhutto men do not live very 
long." Prescient man! But nobody could have foreseen the tragic end 
of the three Bhuttos.
Even a populist leader like ZAB allowed himself to be cut off from 
his constituency. Increasingly reliant on the bureaucracy, he asked 
deputy commissioners and commissioners to nominate many of the 
candidates for the election, thus bypassing his own party. When the 
chips were down, many of the PPP workers refused to come out on the 
streets. Twenty years later, his daughter made the same mistake and 
shared a similar rejection from the PPP.
The point is that once a leader has convinced himself of his own 
infallibility, he feels he is not accountable to lesser mortals. 
During his stint as chief minister, Nawaz Sharif had his 
discretionary allowance increased from 20 million to 90 million, 
and went around distributing largesse to all and sundry, much in 
the manner of a moghul prince. It is this blurring of the line 
between personal funds and the state exchequer that leads to the 
next step of dipping into the latter at will.  Somebody like Nawaz 
Sharif simply cannot understand the fuss about his multi-billion 
bank defaults and his alleged tax evasion. Similarly, Benazir 
Bhutto shrugs off the charges (some now proven) of corruption on an 
epic scale. Zia's son Ijazul Haq will not admit that his father did 
any wrong in leaving him assets far, far in excess of his known 
income. All these people are secretly convinced that these extras 
go with the job. What is the point in becoming the chief executive 
if you can't feather your nest?
Remember, for all their fine words about wanting to serve the 
people, the only people they actually want to serve is themselves 
and their immediate families. But above all, they are so convinced 
that the power of the state will protect them from accountability 
that they do as they please.
Unfortunately, civil servants generally do not have the spine to 
stand up to them. When Nawaz Sharif launched his hare-brained 
yellow cab scheme, he was applauded by Salman Farooqi, the 
communications secretary, and Qazi Alimullah, the finance 
secretary. Both of them rose to greater heights under BB. When some 

bankers asked about security for their funds, they were told by 
Alimullah that if they could not deliver, replacements who could 
would be easy to find.
When ambitious men and women scale the greasy pole of political 
power, they should remember that the higher they climb, the harder 
they fall.

Pakistan factfile for the World Cup
Group B (with Australia, West Indies, New Zealand, Bangladesh and 
This team has everything - top pace bowling, spin, flamboyant 
batting - Ijaz Ahmed and Inzamam-ul-Haq have rediscovered their 
form - and a string of lavish all-rounders like Shahid Afridi, 
Wasim Akram and Azhar Mahmood. Equally importantly, many of them 
have experience playing in England.
The only thing that ever seems to hold Pakistan back is infighting, 
scandal and inconsistency. Several of the squad are still being 
investigated for allegedly fixing the results of One-day 
Internationals, while coach Javed Miandad quit just before the team 
left for London. But Wasim, back as captain yet again, seems to 
have won the players' support just in time.
Recent form:
Oct '98: Lost 1-0 to Australia in home Test series and 3-0 in the 
one-day rubber. Lost to West Indies in quarter-final of the mini 
World Cup.
Nov '98: Beat Zimbabwe 2-1 in home one-day series.
Dec: Lost to Zimbabwe 1-0 in home Test series.
Feb '99: Draw with India 1-1 in away Test series.
March: Win Asian Championship against Sri Lanka (India failed to 
reach final). Beat Bangladesh away in one-off one-dayer.
April: Beat India in away tri-nations tournament (Sri Lanka failed 
to reach the final), overall four wins, one defeat. Beat India in 
Shajah Champions Trophy final (England failed to reach the final), 
overall three wins, two defeats.
The semi-finals - at the very least.
Player to watch:
Wasim Akram starred in Pakistan's 1992 World Cup triumph and is 
rediscovering the form to suggest he could do so again. He is a 
genuine all-rounder, his left-arm pace bowling earning him a 
historic two consecutive hat-tricks against Sri Lanka in the Asian 
Championship in March. Stripped of the captaincy at the start of 
1998 following match-fixing allegations, he is now back in favour. 
His ability to keep the team together, as Imran Khan did in 1992, 
may hold the key to its chances of ruling the world again.
World Cup pedigree 1975-1996: Played 37, won 21, lost 15, no result 
Winners: 1992.
Semi-finalists: 1979, 1983, 1987.
Eliminated before semi-finals: 1975, 1996.-AFP

Council accepts Miandad's resignation unanimously

KARACHI, May 2: The executive council of the Pakistan Cricket Board 
(PCB) showed no mercy to idol Javed Miandad when it accepted his 
resignation unanimously in the two-day summit that concluded at the 
National Stadium on Sunday.
Nusrat Azeem, president of the Karachi City Cricket Association, 
who conducted a crowded press briefing, said Miandad's resignation 
was accepted in the larger interest of the team and country.
"I don't want to explain more than what I have already said. But 
you are free to interpret," Azeem, who is the senior most 
councillor, remarked.
When asked if his statement meant that Miandad would have spoilt 
the team, he kept mum. "I have already said that it was a unanimous 
decision of the council.
"We didn't contact him (Javed Miandad) because what we have heard 
and read is enough," he said.
Azeem conducted the press conference after chairman PCB Khalid 
Mahmood skipped the briefing and left the National Stadium before 
it was to start though his flight for Islamabad was scheduled late 
in the evening. Chief executive Majid Khan didn't attend the second 
day's session because of food poisoning. On Saturday, he was 
instructed by the chairman to hold Sunday's briefing.
Azeem said the cricket board wanted Miandad to continue till the 
World Cup but he resigned. "He himself says that because of family 
commitments he can't continue so what can we do?"
Javed Miandad, who had remained a silent spectator since submitting 
his resignation on April 21, added fuel to the controversy when he 
said from Lahore: "I always knew that they would sack me. And 
that's why I resigned to avoid that humiliation.
"My point is vindicated today as they have accepted my 
resignation," he said, adding: "The players were against me and 
some officials of the cricket board were patronizing them.
"If the players don't want me, how can I continue? My job is to get 
the best out of them and in the present scenario, that wouldn't 
happen. So I decided to quit and let the players play on their own 
so that no aspect is left unplugged which could be made an excuse 
if, god forbidden, the team falters."
Miandad and some senior players got in a tangle during the Sharjah 
Champion's Trophy match against England which Pakistan lost by 62 
runs. According to reports, Miandad had accused five players of 
deliberately playing cricket below their potential.
Azeem throughout the press briefing remained at the receiving end. 
At times, he had no answers to questions. In fact, the 105-minutes 
briefing remained tense with Azeem losing his temper in the first 
20 minutes when pressed on a couple of issues.
While the Miandad issue was the hottest with his future as the 
topic of discussion from Karachi to Khyber, it was pretty low in 
cricket board's agenda.
To begin with, Azeem briefed the mediamen agenda wise and Miandad's 
resignation came at the fag end of the conference. Secondly, when 
Azeem was asked why the executive council's approval was not taken 
in Pybus's appointment, he replied that approval of only major and 
urgent issues is taken on telephone while matters that can wait, 
are discussed and approved in the council meeting.
Asked then how the accounts were approved, he said: "The accounts 
were approved with qualification. We approved whatever details were 
available. But I cannot promise when the complete accounts will be 
available though we are trying."
He said suggestions have been sought from the Domestic Tournament 
Monitoring Committee (DTMC) how the restructuring and improvement 
can be made in the first-class tournament. To construct academies 
at Karachi and Lahore, suggestions have been sought while the 
secretariat has been assigned to draft a proposal to create a 
welfare trust for the former Test cricketers who require financial 
    Azeem said it was after a long time that the executive council was 
calling the shots in cricket affairs. "In the previous setups, the 
council used to play in the hands of the officials. Most of the 
decisions were implement without the approval of the council."
Azeem said the council has approved the names of the match referees 
and umpires. But stated that the names would be sent to the 
International Cricket Council (ICC) who will officially announce 
them. But he confirmed that the two match referees and umpires have 
been replaced.
Azeem said the PCB has received two invitation from the organizers 
of the World Cup. He said the council would decide who would go. 
But it seems that nothing is left for council to decide as the PCB 
has already confirmed the names of Asif Shah (Peshawar) and Justice 
Ijaz Yousuf (Quetta).

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