------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 09 January 1999 Issue : 05/02 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + US to fully certify Pakistan on March 1 + India should resolve Kashmir issue: FO + Labour laws to be simplified, pension increased: draft policy + Job quota bill tabled in NA + Govt withdraws notices against five IPPs + Altaf demands withdrawal of governor's rule + National education policy: Sindh fails to submit report to centre + Population control: Need stressed to seek ulema, NGOs' help + Kot Addu power plant has fuel for two days only + Balochistan to get 12 digital exchanges --------------------------------- BUSINESS & ECONOMY + Forex reserves up at $1.06bn + Rice prices seen stable on low global demand + Only 600 retailers registered for sales tax + Current deficit touches Rs143bn mark, National Assembly told + Gold prices at 12 months low + SBP allows remittance of shipping, airlines dues + World Bank to approve $300m loan for Pakistan + IMF wants govt to notify agreement with IPPs + Euro makes debut in inter-bank market + 18 GAIE units served notices for payment of dues --------------------------------------- EDITORIALS & FEATURES + End of story Ardeshir Cowasjee + Zero tolerance Irfan Husain ----------- SPORTS + Wasim Akram named captain for Indian tour + Pakistan keen to send cricket team to India

US to fully certify Pakistan on March 1
Shaheen Sehbai

WASHINGTON, Jan 8: Pakistan would be certified as a country "fully 
cooperating" with US and international anti-drug efforts on March 1 
and hence no sanctions, or a presidential waiver, would be needed 
this year.
Officials said the administration will notify Congress by March 1 
which "major" drug-producing and/or drug-transit countries should 
be certified.
President Clinton has already submitted to Congress on Dec 4 the 
following list of countries under consideration: Aruba, 
Afghanistan, The Bahamas, Belize, Bolivia, Brazil, Burma, Cambodia, 
China, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, 
Hong Kong, India, Jamaica, Laos, Mexico, Nigeria, Pakistan, Panama, 
Paraguay, Peru, Taiwan, Thailand, Venezuela and Vietnam.
Non-certification requires the US to deny the country most forms of 
non-emergency aid, and to vote against proposed loans by 
multilateral development banks.
The State Department on Friday issued a fact sheet on the 
certification process saying under the Foreign Assistance Act of 
1961, the President has to submit to Congress every year a list of 
those countries he has determined to be major illicit drug-
producing and/or drug-transit countries.
The FAA requires that half of most US government foreign assistance 
to any country on this "Majors" list be withheld until the 
President determines whether the country should be "certified" 
under the certification process, first enacted in 1986.
A major illicit drug-producing country is defined as one in which: 
(A) 1,000 hectares or more of illicit opium poppy are cultivated or 
harvested during a year;
(B) 1,000 hectares or more of illicit coca are cultivated or 
harvested during a year; or
(C) 5,000 hectares or more of illicit cannabis are cultivated or 
harvested during a year, unless the President determines that such 
illicit cannabis production does not significantly affect the US.
A major drug-transit country is defined as:
(A) a significant direct source of illicit narcotic or psychotropic 
drugs or other controlled substances significantly affecting the 

United States; or
(B) a country through which such drugs or substances are 
 On Dec 4, the President approved and sent to Congress the 
"Majors" list for 1998.
The President is required under the FAA to review anti-narcotics 
efforts undertaken by those countries on the "Majors" list in order 
to determine and transmit certification decisions to Congress by 
March 1, 1999.
The President may select from the following certification options 
for each of the countries on the "Majors" list: full certification, 
denial of certification or a "vital national interests" 
In order to "fully" certify a country, the President must determine 
that it has cooperated fully with the United States, or has taken 
adequate steps on its own, to achieve the counter- narcotics goals 
and objectives of the 1988 UN Drug Convention.
If a country receives full certification, all aid that was withheld 
is released.
Denial of certification requires the US to deny sales or financing 
under the Arms Export Control Act; deny non-food assistance under 
Public Law 480; deny financing by the Export-Import Bank, and 
withhold most assistance under the FAA with the exception of 
specified humanitarian and counter- narcotics assistance.
The US must also vote against proposed loans from six multilateral 
development banks.

India should resolve Kashmir issue: FO
Hasan Akhtar

ISLAMABAD, Jan 7: Pakistan on Thursday said the issue at stake in 
Jammu and Kashmir is the right of the people of Kashmir to self-
determination for which they have been waging unceasing struggle in 
the part of the State under Indian occupation.
A spokesman of the foreign office at his weekly news briefing said 
Pakistan would once again urge India at the next round of talks to 
abandon its negative approach and playing-for-time tactics and to 
enter into a substantive and result oriented negotiation for the 
final settlement of Jammu and Kashmir.
Pakistan's support to the right of Kashmiris was reaffirmed by the 
spokesman while responding to a recent statement of Indian Prime 
Minister Atal Behari Vajpayee who said that India would demand 
"return of the part of Kashmir occupied by Pakistan" at the next 
round of foreign ministers' talks in Delhi.
Rebutting this assertion, the spokesman said that at the next round 
of foreign secretaries talks next month, Pakistan would ask the 
Indian side "to focus substantially on the core issue of Kashmir".
He described as "unfortunate and in bad taste" Indian Prime 
Minister Atal Behari Vajpayee remarks on the possible assassination 
attempt on the life of Prime Minister Nawaz Sharif.
While recounting numerous messages of support and sympathy from 
heads of states and governments on the prime minister surviving a 
possible attempt on his life on Sunday near Lahore, he observed 
"The Indian prime minister has displayed a gratuitous malevolence 
which is regrettable".
The spokesman while referring to Pakistan-Iran relations stressed 
the successful outcome of the Pakistan's foreign secretary's talks 
in Teheran last week.
He claimed that both countries affirmed their resolve to seek 
closer ties and by mutual understanding overcome the differences 
and difficulties that might be persisting.
While hoping early resumption of bilateral and regional efforts for 
securing a peaceful settlement of the Afghanistan conflict, the 
spokesman said Pakistan was in favour of a multi- ethnic government 
in Kabul but at the same time it could not overlook the ground 
realities in Afghanistan where Taliban had secured control of 90 
per cent of the territory.
Referring to emergence of a new alliance of Sibghatullah Mujadidi 
and Pir Syed Ahmad Gillani, he said it was not of any significant 
relevance in the present Afghanistan situation.
Outlining nation's nuclear agenda for the new year, the spokesman 
said while working towards further strengthening of relations with 
the United States, Pakistan hoped the year 1999 would see the 
lifting of all (defence and economic) sanctions which would create 
"the suitable environment for our adherence to the CTBT 
(Comprehensive nuclear Test Ban Treaty).
He further said it was important that Pakistan should enter into 
these arrangements of "our own free will since the sanctions would 
serve no purpose, indeed they would be counter-productive."
The spokesman said that the exchange of lists between India and 
Pakistan of their respective nuclear sites per the agreement for 
the year 1998, showed no change from either side in the number of 
their installations for the past couple of years.

Labour laws to be simplified, pension increased: draft policy

ISLAMABAD, Jan 7: The government has announced setting up of a 
commission, headed by a retired Supreme Court judge, to 
consolidate, simplify and rationalize labour laws, besides forming 
a National Minimum Wage Council, increasing the minimum pension 
from Rs425 to Rs635 and widening the scope of labour laws.
The policy envisages the establishment of The National Minimum Wage 
Council which will help achieve uniformity in minimum wages for 
different categories of workers. It will take inter-provincial 
consultation on the principles, norms and standards for fixing 
uniform rates of minimum wages. It will also undertake review of 
minimum wages for unskilled workers.
According to the draft labour & manpower policy unveiled by the 
federal minister for labour and manpower, Sheikh Rashid Ahmed on 
Thursday, it has been decided to update safety and health 
legislation and extend its scope to all workplaces.
Under the draft policy a National Tripartite Safety and Health 
Council is being established to formulate a comprehensive national 
policy on Occupational Safety and Health and draft a generic law on 
The Employees Old-age Benefits under the Employees Old-Age Benefits 
Act, 1976, is being revised with increase in minimum pension from 
Rs425 to Rs635.
The government will also establish a National Productivity Council, 
which would consist of workers and employers representatives and 
experts from all fields of economic activities. The council on 
tripartite basis will be headed by the minister for industries and 
The draft policy also encouraged participation of workers in 
decision making at plant level through tripartite consultative and 
implementation process.
The commission will comprise employers and workers' 
representatives, specialists in the fields of law, industrial 
relations, labour laws and human resource development, and the 
representatives of the relevant ministries. The commission will 
submit its report in one year's time.
The policy also proposes to amend the Control of Proliferation of 
Trade Unions at the plant level. The union receiving less than 10 
per cent votes in the referendum and those not contesting the 
referendum will be de-registered. The registration of unions 
failing to submit their annual income and expenditure returns will 
be cancelled.
The commission will review and examine the existing labour laws to 
simplify them. The existing laws will be re-classified and re-
grouped for various categories of workers to reduce their number to 
a few necessary ones. The laws will be classified into five 
categories: laws relating to industrial relations, fixation and 
payment of wages, employment and working conditions, occupational 
safety health and human resource development.
The examination of the existing laws will be made in the light of 
the constitutional provisions, ILO conventions ratified by Pakistan 
and globalization process of economies, investment drives and 
higher productivity moves.
The measures to consolidate, simplify and ratonalize labour laws 
will be recommended in terms of classification of similar laws, 
benefits and rights to restructure and reduce the existing laws 
into a bare minimum in keeping with the requirements of workers and 
The commission will finalize its recommendations and submit to the 
government within the year after its constitution and coming into 
The commission may co-opt temporarily the services of experts and 
specialists in the field of labour laws, industrial relations, 
economics and sociology and representatives of workers and 
employers in conducting its business.
The studies in the relevant fields may be conducted through 
academic and research institutions to supplement the commission's 
The new policy also promises extension in scope and benefits of the 
Workers' Children Ordinance, 1972. Free education to two children 
of a worker in any stream of knowledge to any level is provided out 
of the education cess collected by the provincial governments at 
the rate of Rs100 per worker.
The Industrial Relations Ordinance, 1969, is proposed to be amended 
to extend its scope to agricultural occupations, confining it to 
cases where formation of trade union is conveniently possible.NNI
OUR BUREAU ADDS: Federal Minister for Labour, Manpower and Overseas 
Pakistanis Sheikh Rashid Ahmed assured the people here on Thursday 
that the PML government would ensure that each and every word of 
the new labour policy was implemented.
"What we expect from our social partners is their tolerance, 
cooperation and commitment to a national cause," he said, while 
launching the Draft Labour and Manpower Policy at a function.
The Labour Minister began his speech by mentioning the examples of 
Japan and Germany where, he said, man was more important than 
He said the new policy had a participatory approach instead of 
mandatory directives.
Observing that the draft document was an attempt to provide a 
suitable response to the issues involved, he did not rule out the 
likelihood of there being some omissions and gaps "which need to be 
filled in after tripartite consultations".
Mr Zafarullah, the Labour Secretary, and Mr Abu Shamim Arif, the 
Industries Secretary, said that industrially, Pakistan had 
languished because its workers had been neglected. The time, they 
added, was now ripe for a new dispensation to make Pakistan 
competitive in the current globalization scenario.
The ILO Director, Mr Appave, said the draft "is only a first step 
in a continuous process which should include tripartite 
consultations at all stages."
Pointing out that the ILO is a tripartite organization which 
includes the government, employers' and workers' organizations, he 
stressed that any Labour and Manpower Policy which was formulated 
on the basis of a tripartite consensus was usually easier to 
implement to the satisfaction of all parties concerned.
In this connection, he appreciated that the draft reaffirmed the 
government's commitment to tripartism through strengthening and 
regularly holding the meetings of Standing Labour Committee.
Mr Ashraf W. Tabani, President, Employers' Federation of Pakistan, 
and a member of the ILO Governing Body, however, opposed the 
concept of tripartism and demanded non-interference by the 
government in the process of collective bargaining, thus helping to 
promote bilateral relations of the social partners.
Malik Meherban, a labour leader who was invited to speak only a 
couple of minutes before Iftar, said that the draft policy, if 
implemented in letter and in spirit, would advance the workers' 
welfare. While describing the "contract labour" as the biggest 
problem faced by the workers, he stressed the need for calling a 
tripartite conference before formulating new labour laws.
He also demanded the repeal of the Essential Services Act.

Job quota bill tabled in NA

ISLAMABAD, Jan 7: Law Minister Khalid Anwar on Thursday introduced 
in the National Assembly the 16th Constitutional Amendment Bill to 
restore the regional quota system in services.
The bill seeks amendment to Article 27 of the Constitution.
It said in the first proviso, clause (1) of Article 27, for the 
word "twenty" the word "forty" shall be substituted and shall be 
deemed always to have been so substituted. Through this amendment, 
the bill seeks to restore for further 20 years the job quota in 
In its statement of objects and reasons, the bill stated that 
Article 27 of the Constitution had provided a safeguard for the 
citizens of Pakistan against discrimination in the services.
The statement goes on to say "but since at the time of the 
commencement of the Constitution all citizens did not have equal 
opportunities to advance in education and professional training 
hence it was provided that for a period of 10 years posts may be 
reserved for persons belonging to various areas to secure their 
adequate representation.
Even after the expiration of the 10 years' period, the statement 
said, the persons residing in various areas did not have equal 
opportunities in education. Thus, in 1985, the said period was 
extended to 20 years.
It went on to say that even today all citizens do not have equal 
opportunities to advance in education and professional training.
Therefore, it said, in order to provide adequate representation to 
persons belonging to various areas it was appropriate to make an 
amendment in the Constitution to extend the said period to 40 
According to the bill, the amendment shall maintain continuity in 
the reservation of posts. It said the National Assembly had already 
resolved unanimously on June 30, 1998, that the quota system in the 
country should be extended for another 20 years on a fair and 
equitable basis and rights of under-developed areas and minorities 
may be protected. 
In all, the Law Minister Khalid Anwar laid before the National 
Assembly seven ordinances as required by clause (2) of Article-89 
of the Constitution only to attract scathing onslaught from the 
The ordinances laid before the House were:The Customs (Amendment) 
Ordinance XVI, 1998; The Pakistan Armed Forces (Acting in aid of 
the Civil Power) (Second Amendment) Ordinance XVII, 1998; The 
Electricity (Amendment) Ordinance XVIII, 1998; The Offences in 
respect of Electricity (Emergency Provisions) Ordinance XIX, 1998; 
The Pakistan Water and Power Development Authority (Amendment) 
Ordinance XX, 1998; The Pakistan Water and Power Development 
Authority (Second Amendment) Ordinance XXI, 1998; The Drugs 
(Amendment) Ordinance XXII, 1998.
Criticising legislation through ordinances, Syed Naved Qamar lashed 
out at the government for ignoring the opposition's point of view 
forgetting that on all these ordinances the opposition had 
submitted its resolutions under Article 89.
He was very bitter about the fact that the government did not take 
up the dissenting resolutions on the ordinances in consonance with 
the Constitution before the House.
Mr Qamar said the government was violating the constitution by not 
presenting the opposition's resolutions for debate. He demanded to 
lay the disapproval resolutions on theses ordinances before the 
The Parliamentary Affairs Minister, Yasin Wattoo, said that as soon 
as legislation business gets completed in the House, the government 
would bring before the House the resolutions of disapproval for 

Govt withdraws notices against five IPPs
M. Ziauddin

ISLAMABAD, Jan 8: The government on Friday withdrew notices of 
termination issued earlier against five Independent Power Projects 
(IPPs) enabling three of them to resume immediately their 
commissioning process. Two of them are already in production.
In return the five IPPs, Southern Power, Saba power, Habibullah 
power, Kohinoor power and AES ( Lalpir) have withdrawn their cases 
from the International Chamber of Commerce (ICC) where they had 
gone for international arbitration against the termination notices.
The cases of Uch power and Liberty which had also come to an 
understanding on the issue of tariff with the government earlier 
along with the five mentioned above, are still pending, as the 
first one has asked for time to consult with its foreign principles 
and in the case of the second one WAPDA is said to have objected to 
the terms and conditions of the settlement.
Earlier these seven IPPs had reached an agreement with the Ehtesab 
Cell on tariff reduction with all but Saba and Uch agreeing to 
bring down the rates from 6.1 cents a KwH to 5.8 cents while the 
latter two being gas fired projected had agreed to reduce their 
tariffs even lower to 5.6 cents a KwH.
The fate of these agreements is still hanging in the balance as the 
ECC has not yet ratified them. On the other hand the multilateral 
donors led by the IMF and the World Bank are said to have 
intensified their pressure on the government for an early 
Sources said that IMF has sent an urgent message to the government 
warning it that if the ratification of these agreements was not 
done before January 14, the Fund Board would be constrained to 
postpone the meeting scheduled to be held specifically to approve 
Pakistan's three-year 1.6 billion dollar ESAF/EFF arrangements.
Sources further said that the Ehtesab Cell which had actually 
messed up the whole affair by insisting that all IPP deals were 
shady has finally withdrawn itself from the fray. Now it has turned 
reportedly into a source of turf war among the ministries of 
finance, water and power and law, the sources added.
WAPDA is said to have come to the conclusion that 20 years down the 
line it would be paying much less at 6.1 cents a KwH than what it 
would have paid at the rate of 5.8 cents a KwH considering the 
comparative value of the rupee between now and 20 years' hence.
But the law ministry which is still looking for evidence of 
corruption in the IPPs deals is said to have refused to consider 
the new WAPDA proposal and referred to it its own plea that payment 
at the rate of 6.1 cents has rendered WAPDA bankrupt.
But WAPDA reportedly has changed its story and is now said to be 
pointing out that WAPDA's payments to the IPPs had little to do 
with its financial woes as most of these projects have yet to come 
on stream.
The finance ministry reportedly wants to cut the IPPs din quickly 
and leave it far behind so that it could move ahead on the matter 
of new loan agreements with the multilateral aid agencies and 
create as well conditions for resumption of foreign direct 
investment flows into Pakistan.

Altaf demands withdrawal of governor's rule

RAWALPINDI, Jan 3: Muttahida Qaumi Movement chief Altaf Hussain on 
Sunday appealed to President Mohammad Rafiq Tarar and Chief of the 
Army Staff Gen Pervez Musharraf on Sunday, to withdraw governor's 
rule and military courts from Karachi and find a solution to the 
situation there in consultation with the MQM leaders.
Talking to the newsmen in his first telephonic conversation at 
Rawalpindi Press Club in a "meet the press programme," he claimed 
that the setting up of military courts was an attempt by the 
government to crush the MQM.
"I appeal to the army chief that armed forces should not be used 
for the satisfaction of a single sole as it would not only bring in 
the country at the verge of collapse but it would also spoil the 
image of national institutions," he added.
Responding to a question about his return, he said every MQM leader 
had been implicated in at least 30 to 40 fake cases and if he 
returned, he would be hanged by "the corrupt rulers."
However, he said if the government filed any case against him in 
British courts, he would make a number of disclosures regarding the 
"corruption of Prime Minister Nawaz Sharif and his family, his 
political aides, gross human rights violations in Karachi before 
the world."
Answering a question about a demand for Jinnahpur, he termed such 
allegations a bid to malign the MQM.
He said if the formation of military courts was necessary, then why 
cases of corruption, extra-judicial killings in Karachi, plundering 
of national wealth were not being sent to the military courts.
To a question, he said the law and order situation in Punjab was 
worse than in Sindh.
Quoting a statement of Interior Minister Chaudhry Shujaat, he said 
that 861 people had been killed in Karachi from January 1998 to 
September 1998 while during the same period 1,070 persons had been 
murdered in Lahore.
The MQM chief said that last year 26 incidents of bomb explosions 
had taken place in Punjab in which 48 people had been killed and 
267 injured while in Sindh 11 such incidents only had been reported 
last year.
Other MQM leaders, including MNA Sheikh Liaquat, were also present 
on this occasion.


National education policy: Sindh fails to submit report to centre

ISLAMABAD, Jan 3: Nine months have lapsed since the announcement ( 
March 27,1998) of the new national education policy (1998-2010), 
but the government of Sindh has not submitted a report to the 
federal ministry of education on progress in the implementation of 
all the policy points, official sources claimed on Saturday.
The points of the policy on which the provincial government had so 
far failed to report, according to the sources, were : progress on 
upgradation of one medical college and one general college to the 
level of university; five per cent increase in enrolment; split Phd 
programmes; establishment of new public and private universities; 
establishment of five science colleges and two professional 
colleges; prime minister's development funds; computer literacy for 
educational planners; preparation of curricula relating to 
computer, teachers' training in IT; establishment of a cyber 
institute; acquisition of computer labs for training of teachers in 
schools; multimedia application and software development 
competition; use of satellite for mass education; establishment of 
mobile library services; establishment of a model public library at 
the provincial headquarters; promulgation of law for the acceptance 
of 10 per cent of poor but talented students in private 
institutions; provision of education card; utilization of 
Pakistan's talent abroad; national education testing service; 
incentives to best teachers; establishment of Pakistan education 
service cadre; and establishment of a national council for 
educational development.
However, the sources said, the Sindh government had informed the 
federal ministry of education that 211 new primary schools would be 
set up in the province during the current financial year; 249 
additional classrooms would be built in existing primary schools; 
1350 non formal primary schools had already been set up and their 
number would be increased.
Regarding legislation for compulsory primary education, the Sindh 
had informed the ministry that a draft in this regard had been 
finalized. It had also stated that 305 primary schools would be 
upgraded to middle level and construction of 30 middle schools 
would be undertaken; and teachers would be appointed after the ban 
on recruitment was lifted, the sources said.
Regarding promotion of secondary education, the Sindh government, 
according to the sources, said 94 middle schools would be up 
graded; 33 existing high school would be upgraded; 21 single-
section high schools would be established, 210 additional 
classrooms in high schools would be built. For the regulation of 
private schools, it said a draft law was being finalized. The Sindh 
government said it had decided to establish one model school in all 
the districts. It added that 13 public model schools were under 
The sources said the Sindh government had further informed the 
ministry that revision of curricula was under review, under the 
middle school project. In connection with in-service training of 
educational administrators, it said a management training unit 
already existed, which trained such administrators. It also said 
that new technical and vocational institutions would be opened in 
the province.
The sources said the Sindh government had further said that, under 
the technical education project, US$ 1 million had been allocated 
for providing loan to NGOs. It had also said that 21 computer labs 
would be established during 1998-99 and that computer literacy 
would be made compulsory in all disciplines of diploma of associate 

Population control: Need stressed to seek ulema,  NGOs' help 
Bureau Report

ISLAMABAD, Jan 6: Senate standing committee on population welfare 
which met under the chairmanship of Senator Habib Jalib Baloch in 
Parliament House here today, has underlined the need for greater 
and meaningful involvement of NGOs, Ulema and leaders of public 
opinion to create awareness among the masses with regard to the 
population welfare.
The committee was informed that the NGOs had played a key role in 
the development and implementation of the national population 
It was informed that the Family Planning Association of Pakistan 
(PPAP), established in 1953, did well in this sector for about 
three decades where after the NGO Coordinating Council (NGOCC) was 
created in 1985 as the first formal official agency to enlist the 
organizations in supplementing government efforts in this context.
The NGOCC was followed by the establishment of National Trust for 
Population Welfare (NATPOW) in 1994 with the status of an 
autonomous NGO umbrella organization. It is aimed at broadening the 
parameters of population welfare with greater participation of 
The committee was of the opinion that the ministry of population 
welfare should establish maternity homes in different provinces, 
particularly the far-flung areas, in collaboration with the 
ministry of health and social welfare.
It was felt that the NGOs and the governmental organizations 
engaged in the population welfare activities were motivated not by 
national interest but were inspired by the bureaucratic norms and 
It was also felt that the NGOs also preferred to concentrate their 
activities and create their infrastructure in the big urban centres 
and the rural areas generally remained neglected.
The committee was of the view that the curriculum of the students 
at matriculation and college level should also include the 
population welfare subjects and that the exchange visits of the 
religious scholars of Pakistan and other Muslim countries should 
also be arranged for helping them share their experiences and 
knowledge on the subject.
The committee also decided to constitute a 5-member sub-committee 
to undertake a deep study of the issue and suggest ways and means 
to meet the challenge of growing population in the country.
The committee also called upon the population ministry to coopt the 
ministry of religious affairs and prepare a questionnaire to elicit 
opinion of the religious scholars, intellectuals and the 
knowledgeable people on the matters pertaining to the population 
welfare programmes.

Kot Addu power plant has fuel for two days only
M. Ziauddin 

ISLAMABAD, Jan 7: The fuel oil levels at Kot Addu Power Company 
(KAPCO) have become critically low, enough for only two days at the 
present level of generation.
The shortage of fuel is expected to severely reduce the output from 
Kot Addu and bring it down to a fraction of its present capacity.
According to KAPCO sources, the fuel oil tanks at Kot Addu were 80 
per cent full at the start of December, 1998, but the recent supply 
problems mean that at this level of generation, fuel oil for only 
two more days remains.
For the past three months, the company has not received the 
quantities of oil ordered from PSO, despite what it claims its best 
The PSO is said to have expressed its inability to meet its supply 
obligations to KAPCO because of what it calls the import 
constraints being experienced due to foreign exchange limitations 
imposed by the government of Pakistan.
More recently, the dense fog in Punjab has also hampered delivery 
of fuel by rail.
The gas turbine at Kot Addu can operate on either gas or fuel oil, 
but since gas supplies were diverted elsewhere by Sui Northern in 
early December, 1998 , the power station has been depending on fuel 
oil for its generation.
Kot Addu has been generating constantly in excess of 1000MW for the 
past few weeks in order to support WAPDA in dealing with the 
present countrywide loadshedding problem.
The KAPCO sources said the management continued to press the 
relevant authorities to supply oil and gas to improve the 
A spokesman for the company, when contacted, said : "It is 
extremely disappointing that due to the failure to obtain fuel 
supplies, which is outside our control, Kot Addu will be prevented 
from providing much-needed power at this sensitive time for 

Balochistan to get 12 digital exchanges

ISLAMABAD, Jan 2: The government has planned to install 12 new 
digital exchanges in Balochistan during this financial year.
Federal minister for communications Nadir Pervez said this plan was 
chalked out by the government for providing telephone facilities to 
the people of Balochistan.
The new digital exchanges to be established by PTCL in different 
areas include Awaran, Bhag, Nall, Saindak and Washuk (300 lines 
each), Baleecha and Chaghi (200 lines each), Fruit Market and Truck 
Adda (910 lines), Gandawa, Mashkey and Basima (400 lines each) and 
Hub (500 lines).
SCHOOLS: Federal minister for education, Syed Ghous Ali Shah said 
on Saturday that 75,000 non-formal basic education community 
schools will be opened within three years under national education 
policy 1998.
The minister said that 3,144 community schools have been allocated 
only for NWFP for the first year of the planned period.
He said that 25,000 non-formal schools would be opened each year.
The minister said that 379 foreign scholarships of different 
categories were awarded during the last three years.
Giving details of the scholarships, he said that these scholarships 
were: 66 COT, 22 Quaid-i-Azam, 30 merit, 100-scholarship 35, 63 
Commonwealth, 33 Fulbright and 130 scholarships under the cultural 
exchange programme.APP

Forex reserves up at $1.06bn

KARACHI, Jan 7: Pakistan's foreign exchange reserves rose to about 
$1.06 billion on January 2 from $1.02 billion on December 26.
According to a weekly report of the State Bank,the country had $811 
million worth of approved forex reserves and $246 million worth of 
overseas balances on January 2. On December 26 the country had $586 
million in approved reserves and $434 million in balances held 
abroad in cash and short term securities.
On December 19 total foreign exchange reserves stood at $735 
million which rose substantially after the US released $324 million 
on account of undelivered F 16s booked some years ago.
Pakistan is scheduled to pay around $260 million to its foreign 
creditors this month.
But senior bankers say a serious contraction in imports may keep 
the reserves from registering a big decline. They say importers 
have been operating moderately after the change in the composite 
rates mix in last November that has made imports costlier. They 
further say that inflow of export proceeds has picked up after the 
change adding that faster inflow of export earnings may also help 
the reserves maintain a certain level.

Rice prices seen stable on low global demand

KARACHI, Jan 7: Pakistan domestic rice prices are expected to 
remain stable in the coming week because of low international 
demand, dealers said on Thursday.

They said Indonesian buyers have still not opened letters of credit 
for rice imports in the tender Pakistan won in late December for 

the supply of 277,000 tonnes IRRI rice. And orders from the Middle 
East and Europe for Basmati rice have yet to materialise.
'The LCs have still not been opened, therefore there is little 
local buying for Indonesian orders,' exporter Dara Raza Baig of 
Mehmood Ltd said.
He said prices are likely to remain weak in the coming week because 
of low international demand.
'African countries were major destinations for Pakistan's IRRI 
variety, but this year India gained the upper hand because prices 
there were low,' he said.
He said even though Pakistani prices have dipped recently demand is 
still not there.
Khalid Ghori, an exporter of Basmati rice, said orders from the 
Middle East and Europe were expected in late January. But before 
that prices would remain steady, he said.
He said lack of rains have hit Pakistan rice output, which may not 
rise much from the previous year despite official predictions.
Government officials have said Pakistan's 1998-99 rice output was 
likely to be more than five million tonnes compared to 4.3 million 
tonnes last year, which would leave a surplus of three million 
tonnes for export.
But low international demand for Pakistani rice has depressed 
exports so far this year, with 420,319 tonnes exported in the July-
November period, compared to 520,409 tonnes in the same period last 
Pakistan exported more than 2.055 million tonnes of rice in 1997/98 
(July-June), compared to 1.767 million tonnes the previous year.

Only 600 retailers registered for sales tax
Ikram Hoti

ISLAMABAD, Jan 7: The Central Board of Revenue has failed to make a 
presentable success in collection of retail sales tax in the first 
half of current fiscal.
Not more than 600 retailers have been registered in this period 
under the Sales Tax Act, 1969. CBR had estimated that at least two 
million retailers with turnover of more than Rs5 million should 
have sought registration for payment of retail tax in July-December 
The board officials working on a formula to offer incentives on 
sales tax by retailers, suggest that the consumers be offered a 
refund of 2-4 per cent on obtaining the receipt for purchase. This 
receipt would be a record proving sale by a retailer, making him 
pay 15 per cent (up to December 12.5 per cent) sales tax. "We are 
also working on other suggestions in this connection, and hope that 
something concrete would soon come out, to ensure that the 
retailers are unable to defy the imposition of sale tax", said 
Mushtaq Kazmi, CBR member, sales tax.
However, he explained that on this count the CBR was not suffering 
from any revenue shortfall since the federal government's scheme to 
tax the non-registered suppliers an extra one per cent on their 
supplies to registered persons, has come in lieu of the retail tax 
target of Rs2.2 billion set for the financial year 1998-99. In the 
retail tax itself, not more than Rs200 million is expected to be 
deposited by the end of the current financial year.
CBR official when asked what mechanism would be devised to prevent 
retailers from offering consumers non-RT-paid prices on non-receipt 
purchases, to avoid payment of retail tax, he said "we are working 
on the proposal to ensure that it discourages both the consumer and 
the retailer from going for non-receipt bargains.
"One deterrent in this connection would be the attached regulation 
that teams of Sale Tax department be sent on routine and regular 
checks, which would be empowered to demand from the shoppers the 
receipt of purchases made, on failure of which the shopper and the 
retailers both could be penalized." He did not give details of such 
a penalty, but said "it would be sufficiently discouraging".

Current deficit touches Rs143bn mark, National Assembly told
Bureau Report

ISLAMABAD, Jan 7: Finance minister Muhammad Ishaq Dar told the 
National Assembly on Thursday that the estimated deficit in the 
1998-99 budget was to the tune of Rs143 billion.
The minister said that this estimated deficit was 4.6 per cent of 
GDP. "The final fiscal deficit for the year would be computed at 
the close of the financial year," Dar said in response to a 
question asked by Muhammad Farooq Ahmad, MNA.
With regard to the economic growth rate of the country during 1996-
97 and 1997-98, the finance minister said that economic growth i.e. 
GDP growth rate during 1996-97 was 1.3 per cent which increased to 
5.4 per cent in 1997-98. He said that the agriculture sector grew 
by 5.9 per cent in 1997-98 as against almost zero per cent growth 
of last year.
About the MoUs that were signed during the last 15 months, he said 
that only two MoUs involving an amount of Canadian $2.247 million 
were signed in this period. One of the MoUs is concerning the 
strategic technical assistance and responsive transfer fund through 
the Canadian government. The other MoU is to support a research 
project of the Pakistan Institute of Development Economics.
Answering a question about money changers, he said that there were 
only 312 authorised/licensed money changers in the country. Sardar 
Kamil Umar, parliamentary secretary on finance, while responding to 
supplementary questions of the MNAs, admitted that thousands of 
money changers were operating without any legal backing and that it 
was very difficult to catch hold of them. The government, he said, 
was encouraging the unauthorised money changers to get themselves 
registered but so far only 30 to 40 had responded in the positive.
Kamil Umar agreed that these money changers had badly affected the 
remittance of foreign exchange through banks. Hundi system is quick 
and very much popular among overseas Pakistanis. But the government 
was taking all possible measures to transfer the foreign exchange 
through banks in the shortest possible time.
Answering a question of Mian M Munir, MNA, about the smuggled 
vehicles operating in the country, the finance minister said that 
the number of such vehicles was not known. He said that in April 
1998 the government had granted a one time chance to the owners of 
smuggled vehicles throughout the country to get their vehicles 
regularized on payment of duty and taxes by June 1998. "Under this 
scheme 3932 vehicles were got regularized by the owners on payment 
of duty and taxes amounting to Rs981 million," the minister 
informed the house.
After the expiry of the one time amnesty scheme, he added, the 
government cracked down on such vehicles and during the period 
July-Nov 1998 the customs seized about 1,336 vehicles. The 
operation was still continuing, the minister said.
Gold prices at 12 months low

KARACHI, Jan 6: Gold prices plunged to 12 months low on Wednesday 
in the local bullion market in reciprocation with the ease in 
dollar rates in kerb market, dealers said.
The 24-karat-gold rates were down by Rs 72 per 10 grams to Rs 4,928 
as compared to overnight rates of Rs 5,000.
'It is after almost a year that the gold prices have plummeted 
below Rs 5,000 mark,' said a bullion dealer.
He said the ease in dollar rates in the kerb market and 
strengthening local currency forced some downward adjustment in the 
gold rates which remain higher in the international market.APP

SBP allows remittance of shipping, airlines dues
Mohiuddin Aazim

KARACHI, Jan 6: The State Bank on Wednesday allowed outward 
remittance of around $11 million worth of stuck-up shipping freight 
from Pakistan which cleared the backlog of up to middle of November 
last year. Shipping line representatives said the SBP might allow 
repatriation of another $11 million stuck-up, up to December 1998 
anytime this month.
"The State Bank released some $11 million today," said the Chairman 
of All Pakistan Shipping Lines Association Farrukh Qaiser. "We have 
been told that the remaining $11 million will be cleared in the 
current month."
Some $42 million worth of shipping freight were stuck-up last year 
after it ran into financial crisis in the wake of May 28 nuclear 
blasts. The State Bank cleared $22 million on December 1, 1998 
after the shipping lines decided to receive shipping freight only 
on free-on-board (FoB) basis to avoid non-repatriation of freight.
Sources in airline industry said the State Bank also allowed 
outward remittance of stuck-up foreign exchange on account of 
passenger tickets and air cargo freight but they could not give any 
State Bank officials were not available to say anything on this 
Senior bankers said the release of foreign exchange by the State 
Bank for outward repatriation by shipping and airlines kept forex 
counters of the banks busy at work. "There was a lot of activity at 
forex counters today due to the release of foreign exchange for 
shipping and airlines," said treasury manager of an American Bank 
Bankers said floating inter-bank rates oscillated in a wide band of 
Rs50.65 and Rs51.25 per dollar adding that the market closed at 
Rs51.10. On Tuesday the US dollar had closed around Rs 51.
Euro: Bankers said apart from the release of dollars by the State 
Bank to shipping and airlines what else kept the forex counters of 
banks at work was trading of euros that had its own impact on 
inter-bank market. They said a number of banks had either bought or 
sold a few millions of euros in global market during the last three 
days. "When banks buy or sell euro from world market they pay in 
dollars and are paid in dollars and this brings in changes in the 
demand and supply of greenbacks here," explained a foreign banker.
Senior bankers said exporters began taking interest in euro on 
Wednesday adding that some banks reported selling of euros by the 
exporters. Bankers say inflow of export proceeds into any 
individual currency of the 11 euroland countries are automatically 
being converted into euros. They say banks are also converting on 
their own the amount involved in import letters of credit 
denominated in euroland currencies into euros. What has not 
happened so far is that the importers have not opened any LC in 
euro on their own, and they cannot do it unless their suppliers 
abroad send them new proforma and invoices. "It may take a month or 
so," said a banker.
Bankers said euro showed wild fluctuations on Wednesday adding it 
changed hands between $1.1720 and $1.1830. In rupee terms euro was 
quoted between 59.40-60.50.

World Bank to approve $300m loan for Pakistan
Ihtashamul Haque

ISLAMABAD, Jan 4: The World Bank will approve $300 million 
Structural Adjustment Loan (SAL) for Pakistan when its Executive 
Board meets on January 21.
Informed sources told Dawn here on Monday that Pakistan was assured 
that since $1.6 billion ESAF/EFF had been reactivated by the IMF, 
the World Bank's Executive Board will accord formal approval to the 
much sought after Structural Adjustment loan.
Moreover, the authorities of the World Bank believed that Pakistan 
has made some progress on four areas to qualify for the loan, which 
included tax administration, restricting public sector spending, 
removing subsidies on various utilities and undertaking banking 
sector reforms.
"Since the government has issued an ordinance that removes 
exemptions in sales tax and customs duties, there are fair chances 
for Pakistan to have $300 million loans disbudded by the World Bank 
in February next ", said a source in the multilateral agency.
He told this correspondent that after the IMF's Executive Board 
meeting in January 15, the World bank's board will formally approve 
the loaning facility for Pakistan on 21 of this month. "This $300 
million loan would have been offered much earlier had the 
government not gone for 30 per cent reduction in the electrify 
tariffs", he added.
However, sources said the World Bank expected that there would no 
more be revenue slippages in the third quarter of the 1998-99 as 
were witnessed in the first two quarters. According to latest 
details, there was a revenue shortfall of Rs36 billion during July-
December this year and the government maintained it all happened 
due to low imports. It said that due to 12 per cent less imports of 
machinery and raw material, the CBR could not collect more 
revenues. Also various concessions given by the government further 
caused substantial reduction in revenues.
Sources said that Pakistan has been advised by the World Bank to 
achieve downwardly revised Rs332 billion annual revenue target for 
the current financial year. But the IMF believed that Pakistan 
would not collect more than Rs300 billion at the end of June 30, 
The government was also asked to further achieve banking sector 
reforms in the Nationalized Commercial Banks (NCBs) and Development 
Financial Institutions (DFIs). In this regard the World Bank wanted 
that losses of the banks should be minimized by curtailing their 
insolvent and loss making branches. The bank reportedly appreciated 
the reduction of branches by the Habib Bank Limited (HBL) to make 
most of the other branches financially viable.
Moreover, the bank, sources said, has called for early 
privatization of the NCBs and the DFIs. It cited the example of MCB 
which was performing satisfactorily after its partial disinvesment.
According to the officials of the Privatization Commission, HBL, 
ABL and remaining shares of the MCB will be disinvested before the 
end of the current financial year.

IMF wants govt to notify agreement with IPPs
Ihtasham ul Haque

ISLAMABAD, Jan 5: The International Monetary Fund authorities have 
called upon the government to "officially notify" the agreement 
earlier reached with the five IPPs failing which the Fund's 
executive board meeting on January 14, may not approve the 
reactivation of 1.6 billion dollar ESAF/EFF.
Informed sources told Dawn here on Tuesday that the IMF has written 
a letter to Minister for Finance Mr Ishaq Dar asking him to 
officially notify the agreement with the five IPPs. This should be 
done either by the federal cabinet or by the Economic Coordination 
Committee of the Cabinet (ECC), the IMF further demanded, the 
sources added.
The government was told that there was no official validity of the 
agreement unless formal approval was accorded to it through a 

notification. Sources said that Mr Dar who had assured the IMF 
authorities in Washington that the government would formally notify 
the issue, has now requested Prime Minister Nawaz Sharif to 
intervene so that IMF executive board should convene its meeting on 
"The IMF people say that the agreement with the five IPPs must be 
officially notified before 14th of this month so that the Fund's 
executive board could sympathetically consider Pakistan's case", 
said a source.
Sources said that the minister for finance had raised the issue in 
one of the ECC meetings held in the second week of December by 
saying that at least this forum of ECC should approve the agreement 
with the five IPPs. But he failed to get positive response. 
Chairman Board of Investment (BOI) Mr Humayon Akhtar who was 
present in that ECC meeting said that the notification should be 
issued by the cabinet or some other government agency and not the 
ECC. However, the officials of Water and Power Development 
Authority (WAPDA) were resisting the official notification in the 
The new chairman of the Authority Lt.Gen. Zulfikar Ali has sent a 
20 page summary asking the federal government not to notify the 
agreement with the IPPs because WAPDA could not afford to loose 
more on this count.
Sources said that WAPDA wanted the official notification of the 
agreement when the IPPs were ready to further lower their tariffs. 
"The new military management of the WAPDA wants the government to 
further bargain with the IPPs", said an official of the ministry of 
water and power.
The new WAPDA management believes that WAPDA had to suffer a 
colossal loss when Power Purchase Agreement was signed with the 
IPPs. It supported Chairman Ehtesab Bureau Senator Saifur Rehman 
that the government had a lot of evidence of corruption by the IPPs 
for which it was necessary to deal the with the issue "afresh".
All the five IPPs had small power plants and two of them have  yet 
not been commissioned. Sources said the IMF believes that if the 
government could not honour agreement with small IPPs, how could it 
concede anything when it would sort out matters with Hubco and 

Euro makes debut in inter-bank market
Mohiuddin Aazim

KARACHI, Jan 4: The euro made a modest debut in Pakistan on Monday 
and small transactions took place in euros in the inter- bank 
Senior bankers told Dawn that at least three foreign banks  two 
European and one American  transacted businesses in euros. They 
said the euro changed hands at different rates ranging between 
$1.1760 and $1.1930. Other local and foreign banks also put euro on 
their rate lists but it could not be learnt whether they transacted 
any business in the new currency. In rupee terms euro was quoted 
between Rs59-61.
"We made some euro transactions as the market opened today," said a 
foreign exchange dealer at Citibank NA but declined to reveal the 
specifics. Treasury officials at Credit Agricole and ABN Amro also 
said they had transacted some business in euros. They too would not 
give details.
Sources in banking industry said the Citibank bought about a 
million euros from Far East and sold part of the sum in London. 
They said the bank also used part of the one million purchase to 
meet its own funding requirements but did not strike any deal in 
the local market  either with other banks or with its clients.
The sources said ABN Amro sold some 100,000 euros to partly- 
privatized Muslim Commercial Bank whereas Credit Agricole bought 
some 600,000-700,000 euros from London to meet its requirements 
here related to home remittances.
The sources said all the three banks made euro transactions at 
$1.1760 to $1.1930 euro per dollar. The euro had opened in the 
world market at $1.747 on Monday.
"Though all local and foreign banks quoted euro exchange rates on 
Monday trading volume was very thin in the local market, almost 
negligible," said treasury manager of a private bank. He said 
neither exporters rallied to sell export proceeds in euros nor 
importers came in to purchase.
"But there was a flurry of queries pouring in all the day, 
particularly from the exporters," said treasury manager of a 
European bank. He said importers did not show much interest in the 
new currency and called it a reflection of a slowdown in imports.
"The purchasing power of the people is on a decline and so are 
imports...that is why importers demand for foreign exchange has 
been very modest for the last few months," the banker added.
Bankers said euro might start changing hands in the local market in 
the real sense from Tuesday after the closing of New York currency 
market late on Monday according to Pakistan time.
"Exporters in particular might be coming in to sell their export 
proceeds in euros in the coming days," said a treasurer. The US 
dollar  which has now found a strong rival in euro  remained firm 
on Monday as floating inter-bank rates closed around Rs51 per 
dollar up from the Saturday close of Rs50.70.
The State Bank composite exchange rates  based on weighted average 
buying and selling rates of selected banks  rose to Rs49.81/50.26 
from Rs49.08/49.54 on Saturday. Senior bankers said the dollar went 
up in the inter-bank market because of increased buying from both 
state-run and private local and foreign banks. They said the banks 
in need of foreign funds to foot import bills and clear other 
liabilities due at the start of the year purchased around $30-$40 
million from the inter-bank market.

18 GAIE units served notices for payment of dues
Intikhab Amir

PESHAWAR, Jan 8: Notices have been issued to 18 industrialists of 
the Gadoon Amazai Industrial Estate (GAIE) for payment of a total 
of about Rs 1500 million outstanding dues on account of customs 
duty and sales tax, sources in the customs and central excise 
collectorate, Peshawar, told Dawn here on Friday.
"The amount is payable against the 18 industrialists for the last 
so many years after they went into litigations, moving the Peshawar 
High Court and then Supreme Court against the levy of customs duty 
and sales tax on their products manufactured at GAIE," said the 
On May 11, 1998, a three-member SC bench dismissed 18 identical 
petitions in which the withdrawal of SRO 517-I, pertaining to 
incentives for GAIE, had been challenged.
As per the court's judgment they had to pay a total of Rs 1090 m on 
account of customs duty and sales tax. In addition to that the 
court had also directed them to pay three per cent mark-up on top 
of the market rate on the amount payable against them under the two 
heads, said the sources.
Despite the SC decision in favour of the government, the recovery 
process could not materialize.
As some of the industrialists went into review petitions whereas 
others, including a ruling party MNA from Karachi, made the customs 
and central excise collectorate, Peshawar, to go slow over the 
issue after being directed by the former finance minister Sartaj 
Aziz, said the sources.
Official circles, here, have attributed the finance minister's 
intervention in the matter to the involvement of Ijaz Shafi, MNA, 
who led a delegation of GAIE industrialists which held meeting with 
the minister [Aziz] after they were issued notices by the Peshawar 
collectorate of customs.
Shafi's group's three industrial concerns in GAIE including M/S 
Diamond Industries Gadoon, M/S Diamond Corporation and M/S Crescent 
Industries have to pay a total amount of over Rs 270 m on account 
of customs duty and sales tax, according to documents available 
with Dawn.
As per documents of CBR, bank guarantees of Rs 27,24,60,247 of 
Allied Bank Ltd, Shahdara branch, Lahore, and Fidelity Investment 
Bank Ltd, Lahore, in the name of three Gadoon Amazai industries of 
the PML MNA were being processed for realization by the customs 
authorities here, when things were brought to a sudden halt.
However, in the meantime, before the recovery process was halted in 
mid-May, said the sources, the Peshawar customs collectorate had 
recovered over Rs 40 m through realization of bank guarantees 
involved against the industrial units concerned.
Those went into review petitions had been granted stay against the 
previously issued customs department's notices by the Supreme Court 
till Dec 31. However, before the lapse of the stay facility the 
court up-held SC earlier decision in favour of the government and 
directed the petitioners to clear the dues," said a well placed 
official of the customs.
Currently, fresh notices have been issued by the customs 
authorities for the payment.
"Most of them have asked for the provision of detailed judgment of 
the court in their review petitions, "said the official.
Terming it a 'delaying tactics' on the part of the industrialists 
to get some time, the official said that copies of the judgment 
would be provided on the availability by the court.
"We are waiting for the detailed judgment which would be issued 
shortly as one of the judges on the Supreme Court bench is abroad 
and would return in a day or two," said the customs  official.
Back to the top
End of story
Ardeshir Cowasjee

WHEN in November 1996 the nation asked their great leader, the 
Tumandar of his tribe, First Citizen of the State, the then 
constitutionally all powerful President Farooq Ahmed Khan Leghari, 
to initiate and complete the process of Ehtesab before thinking of 
Intekhab  accountability before elections  they told him how this 
could legitimately be done. To no avail. He developed cold feet. 
Was it that he realized that he would also be caught up in the 
process? All he did was to selfishly put into positions of power 
men who he trusted would allow him to stay in peace on top of his 
Come Prime Minister Nawaz Sharif, and he made loud noises about the 
even-handed accountability process he and his government would 
initiate and follow through. Many were naive enough to believe him. 
Others refused to accept the even-handed part, but hoped that at 
least he would finish off Benazir & Co, get one canker out of our 
system and perhaps, if he was lucky, bring some of the stolen money 
back into the country. He in turn could be taken care of by the 
next top-dog to emerge. However, just under two years have passed 
since Nawaz Sharif was brought back and Benazir Bhutto is still 
footloose and fancy free.
Come last December 30, and we read about Shahbaz Sharif's 
declaration : "Although the Sharif family's default was engineered 
by the PPP government, it would pay every single penny of the state 
loans of its share even if it had to sell all its assets to clear 
the liability......... At the same time, he said the government [of 
Nawaz Sharif] would bring back to Pakistan during the next few 
months all the [state's and people's] money the former prime 
minister Benazir Bhutto had siphoned off abroad." (Dawn Dec 31)
What Brother Sharif has not said is that in the first place the 
Sharif family would not have been able to borrow even five per cent 
of what they did borrow had Nawaz Sharif not been firstly finance 
minister of Punjab, then its chief minister, and finally prime 
minister of the country, in all of which positions he misused his 
power to borrow what was borrowed, to amass what was earned, and to 
issue SROs for the particular benefit of his family's businesses.  
He also failed to say that the siphoning off of state funds by 
Benazir Bhutto and her family is but a congenital trait. Any book 
written on Zulfikar Ali Bhutto's rule of this country makes this 
clear. For instance, take 'Friends in High Places' the biography of 
Clifford Clarke by Frantz and McKean published in the US in 1995: 
"The first major criminal prosecution by the Justice Department 
focused on McDonnell Douglas Corporation, the manufacturer of 
civilian and military aircraft. Prosecutors uncovered evidence that 
senior executives had paid bribes to a relative of former Pakistani 
president Zulfikar Ali Bhutto, who had been executed earlier in 
1979, and to Bhutto's former chief of staff. The bribes amounted to 
$ 500,000 for each aircraft bought by Pakistan's national airline."
The aggravating aspect of the plunder is that both sides, his and 
hers, try to make the people believe that they are squeaky clean 
and as straight as a die, whereas everyone knows they are as bent 
as corkscrews and completely storto. It is doubly aggravating when 
each of them seeks approbation. If they were not working towards 
the misery of its people, we could perhaps have accepted them as 
jokes, albeit bad jokes.
On the approbation front, flying to Islamabad a couple of weeks ago 
I found Naheed Khan ("I will never leave her") sitting next to me 
on the second leg of the flight, the first having been aborted when 
after arriving over Islamabad we were told we could not land and 
were flown back to Karachi for a couple of hours. I was somewhat 
surprised as before I fell asleep Sharifuddin Pirzada was sitting 
by my side. When I dozed off, he had swapped seats with Nahid so 
that he could chat with Benazir Bhutto.
Naheed asked me if I was who I am, and when I replied in the 
affirmative, she asked my views as to how people generally feel 
about her Leaderene. Well, I responded, no thinking Pakistani with 
an honest bone in his body can hold her in anything but contempt 
after her robbing of the country. Naheed's immediate reaction was 
the normal 'two wrongs equal one right' theory: has Nawaz Sharif 
not robbed? Yes, of course, he has. They are both the same, no 
difference between them. Before she could come up with the other 
usual question: who has robbed more? I told her. No one knows, but 
whichever of the two comes first the other runs a mightily close 
second. I then suggested she go to sleep and let me go back to 
sleep. When I awoke, Sharifuddin was back in the seat next to me, 
The misdeeds of both current leaders are known worldwide and the 
responsible press abroad occasionally comes up with meaty stories 
about their shenanigans that degrade and destroy the credibility of 
our country. Its people are the butt of crude mirth at their 
insistence on electing and re-electing such rulers. The minute we 
read in our press that either one intends to sue a foreign 
publication for what has been written, we know that it was the 
truth, the whole truth.
Last week the 'Washington Times' reported that a State Department 
official to the United Nations, Richard Sklar, had lumped Pakistan 
together with Algeria, Cuba, and Syria and referred to all four as 
"irrational, irresponsible, and reactionary." All that was left for 
Pakistan to do was to feebly protest, which gets it nowhere.
The robbing has not stopped. Kunwar Idris in his column of December 
26 in this paper told us how Liaquat Jatoi and his coalition 
government had employed, whilst a ban on employment existed, 
somewhere in the region of 20,000 men in the provincial government 
and in the local bodies and government-related institutions. All 
these men paid a high bribe for their jobs. If we estimate the 
average charge at Rs.1 lakh, this means that Liaquat hauled in some 
Rs. 200 crores of illicit money.
People must face reality. We have no money, the country is broke, 
no lender considers us to be creditworthy, State Bank figures are 
laughed at. The Bank's year-end report makes no sense and has been 
well-analyzed by this newspaper yesterday in an editorial. When the 
governor of the State Bank proudly announces that our foreign 
exchange reserves have risen to $ one billion, he does not tell the 
people that the remittance applications pending with him for 
remittances to be legitimately made total some $ 2 billion which he 
cannot honour. Nor did he tell us that, at any given time, what he 
has with him by way of reserves is half of what he owes.
When the finance minister tells us that he has collected so many 
billions of rupees by taxing the people, does he tell us how much 
he has to pay back by the way of refunds?
This is what was printed in the half-yearly report of Lever 
Brothers in August last year:
"The current economic scenario of the country, dominated by low 
foreign currency reserves, is already leading to higher levels of 
cost inflation. The situation is likely to be exacerbated by both 
the lack and cost of foreign exchange. There is thus considerable 
uncertainty as to the prospects for the next six months and much 
will depend on the ability of the government to manage its foreign 
exchange requirements and commitments. Substantial increases in 
financial charges are anticipated resulting from higher costs of 
foreign exchange. There is therefore greater need for government 
action to reduce the ever-increasing outstanding balance arising 
from advance tax, far exceeding tax liabilities. This in turn 
places an unfair financing charge burden on the shareholder, 
currently amounting to approximately Rs. 70 million per annum."
The people have to bear the cost of their government's default. But 
for how long can they continue to bear it? Hunger and poverty 
forced a starving mother of Faisalabad district to kill her three 
starving children and then to commit suicide (Dawn Dec 25). There 
have been food riots in Bannu, electricity riots in Mardan, water 
riots in Karachi. Each time we speak, I tell Voice of the 
Government 'Mushahidsaab,' that His Master's Rhetoric, even in the 
largest of doses, will not be able to quench thirst, fill stomachs, 
provide power, curb the population explosion, educate the masses, 
or generate money. He replies with his patently cosmetic Islamabad 
chuckle which lengthens by the day. Last night it ended wishing me 
a Happy New Year.

Zero tolerance
Irfan Husain

EVERY time I return from a trip abroad, I am confronted with yet 
another horror. It never fails: this time, it was the gruesome 
slaughter of 16 people praying in a mosque near Multan.
But before anybody blames me, let me remind readers that this level 
of violence has become the norm for Pakistan. A couple of days 
earlier, there was the bomb explosion near the prime minister's 
country estate; this terrorist attack (as yet unsolved, like most 
such crimes) briefly focused the minds of legislators, but a week 
later, it too has been buried under a flurry of theories and 
claims. And so it goes.
Against this backdrop of increasing bloodshed across the country, 
it should come as no surprise that the government is finally 
considering police reforms. But to put things in perspective, let 
me point out that there have been a number of commissions that have 
submitted reports and recommendations, but we have continued to 
cling to the archaic colonial system we inherited. Not that the 
metropolitan system now being proposed is a panacea for the tidal 
wave of crime that threatens to engulf us. But it would be a useful 
first step, provided the bureaucracy ever lets it take shape.
However, anybody seriously concerned about the deteriorating law 
and order situation in Karachi and elsewhere would do well to 
consider New York as an example of how crime can be contained, and 
a city rescued from gangsters and crooks. Until two or three years 
ago, America's biggest and richest city was known as the crime 
capital of the United States with muggings and murders reaching 
unprecedented heights. Twelve-year olds fought gun battles to 
retain or take over turf to peddle crack cocaine; protection money 
to gangs and cops was just one of the costs of doing business; and 
tourists were warned not to resist a mugger while returning to 
their hotels. Indeed, while we deplored the violence in Karachi, we 
drew some solace from how unsafe New York was.
No longer: suddenly, almost miraculously, things have changed. In a 
remarkably short period of time, the city is safe to walk in after 
dark. The streets are clean, there is no graffiti scrawled 
everywhere, and you don't have to cringe every time you walk past a 
dark alley. The murder rate has dropped to European levels, and New 
York's example is being emulated across America. Although there is 
a lot of hype surrounding this phenomenon, the steep decline in 
crimes of violence is a quantifiable and observable fact.
So what happened? What has caused this amazing turnaround? In two 
words, zero tolerance. This is the name given to the theory that 
has been applied with such brilliant success in major American 
cities. Basically, the idea is to come down hard on the most minor 
crime to create an environment where there is "zero tolerance" of 
all kinds of misdemeanours. Thus, where previously over-worked 
lawmen turned a blind eye to petty crimes like shoplifting and 
scribbling graffiti on public buildings, now they throw the book at 
the perpetrators of such acts and give them the maximum penalty 
under the law.
This theory was developed by two American sociologists who observed 
what they called the "broken windows" effect. They noticed that in 
buildings where the windows had been broken, there was accumulative 
littering and public misbehaviour. But where landlords took the 
trouble to keep their buildings in good shape, tenants tended to 
take more pride in their surroundings. Taking the next logical 
step, the authors theorized that by keeping the streets clean of 
petty crimes, the authorities could ensure that major crimes did 
not occur. Around the time this theory appeared in print, the 
present chief of New York police was doing a course in criminology 
in Boston, and seized upon it as an answer to his city's seemingly 
insoluble law and order problems. And when he was promoted, he put 
theory into practice with enviable results.
Readers will immediately ask if the matter is so straightforward, 
why can't we apply the zero tolerance theory in Pakistan? The 
problem is that it does not brook any exceptions. Once you let off 
X because of his connections, you dilute the impact of the whole 
approach. And in Pakistan, as we all know, the exception does not 
prove the rule; it is the rule. Anybody with the right connections 
or a hefty bank balance can literally get away with murder. The 
corruption and inefficiency rampant in our lower judiciary does not 
help matters either.
Another difference is that political parties in America do not have 
armed wings that are given political protection because of the 
alliances they strike with the ruling party. Here, mysteriously 
well-funded ethnic and religious parties with armed militias enter 
coalitions with mainstream politicians who forge marriages of 
convenience to come into power, thinking they are using their 
junior partners. All the while these extremists utilise these 
sinister relationships to further their own agendas, while 
unleashing a reign of violent crime in the process.
A fourth difference is that police officers in New York are 
reasonably well-educated, well-trained and well-paid. This is far 
more than can be said of their Pakistani counterparts. Here, 
recruitment is on the basis of quotas and connections, not merit. 
Training is poor, and salaries are abysmal. Cops here are virtually 
forced into corruption. Long hours of arduous and often dangerous 
work are rewarded with less than what we pay our drivers. And if 
the rank and file is ill-paid and unmotivated, I am afraid police 
officers are not much better off, excepting for the clout they 
wield owing to their uniforms.
During the Bosnian civil war, the UN put together an international 
police force from its member countries. Hardly any Pakistani police 
officer passed the written exam, and the majority of the few who 
did flunked the driving test. The handful who made the grade was 
unable to work on computers, and as a result, hardly anybody out of 
the scores who applied actually saw service in Bosnia. While I am 
sure the Bosnians weren't too sorry, this shows us where our police 
force stands internationally.
So when we talk about concepts like a metropolitan system or zero 
tolerance, we must remember the quality of manpower these 
structures and theories rest on. The bottom line is that until we 
upgrade our educational system and pay government functionaries a 
decent living wage, we should not expect any improvements.

Wasim Akram named captain for Indian tour
Ilyas Beg

LAHORE, Jan 3:  Test all-rounder Wasim Akram has been brought back 
as captain and wicketkeeper Moin Khan appointed vice-captain of the 
Pakistan cricket team which will tour India from January 23.
Pakistan Cricket Board (PCB) executive council, which met under the 
chairmanship of Khalid Mahmood at the Gaddafi Stadium on Sunday, 
appointed Mian Muhammad Munir (Lahore Divisions Cricket Association 
president) as manager of the team while  Javed Miandad has been 
retained as coach. 
However, decision to appoint a physiotherapist of the team in place 
of Dr Dan Kiesel, who had resigned, was deferred for a few days.
It has been reliably learnt that Saleem Moghal came from England 
and he was interviewed by the PCB. He may be appointed 
physiotherapist of the team.
The PCB media adviser Lt.-Col. (retd.) Rafi Nasim, along with chief 
executive Majid Khan and secretary Waqar Ahmad, briefed mediamen 
about decisions of the executive council.
Number of the national camp trainees has been reduced from 42 to 
23. Chief selector Wasim Bari briefed the executive council about 
strategy of the team for the tour. He also promised that the 15-
member Pakistan team out of the probables will be finalised in a 
week's time.
Following are the 23 camp trainees:
Wasim Akram (captain), Moin Khan (vice-captain), Saeed Anwar, Aamir 
Sohail, Ijaz Ahmad, Inzamam-ul-Haq, Yousaf Youhanna, Salim Malik, 
Waqar Younis, Saqlain Mushtaq, Shoaib Akhtar, Mushtaq Ahmad, Shahid 
Nazir, Azhar Mahmood, Wajahatullah, Rashid Latif, Arshad Khan, 
Muhammad Akram, Shahid Afridi, Nadeem Khan, Asif Mujtaba, Muhammad 
Naveed, Mohammad Husain.
Pakistan has so far played 44 Tests against India, won seven, lost 
four and drawn 33. 
The two teams have played 71 one-day internationals, Pakistan won 
32, lost 25 and drawn four.
While replying to a question, Rafi Nasim said that the PCB legal 
adviser Ali Sibtain Fazli briefed the executive council about legal 
aspects of selection. He was of the opinion that the PCB should go 
ahead with its normal process of picking the team.
"Every one is considered innocent until and unless proved guilty. 
So, when the inquiry commission is busy in probing the betting and 
match-fixing allegations against certain players, there was no bar 
on the PCB in going through the process of selecting the team", 
opined Ali Sibtain Fazli.
Rafi Nasim said that the PCB executive council will deliberate 
about fresh selection of the team if the inquiry  commission found 
any player guilty.
The inquiry commission will give a chance to the accused players of 
a cross-examination on Jan 16. It will finalise its report soon 
afterwards and submit that to the president, who is patron of the 
While replying to a question, chief executive Majid Khan said that 
the PCB was examining the proposed itinerary of the tour and was 
sending it back to the Board of Control for Cricket in India (BCCI) 
so that they also mention the  venues of the side matches to be 
played by the Pakistan team.
Former Test paceman Sarfaraz Nawaz briefed the executive council 
about the progress made by fast bowlers during the camp he was 
running in Islamabad. He expressed satisfaction over the 
improvement made by the bowlers.
Pakistan keen to send cricket team to India
Samiul Hasan

KARACHI, Jan 7: The Pakistan Cricket Board (PCB) are still keen to 
send their team to India despite receiving further threats by the 
Shiv Sena whose activists dug up Ferozeshah Kotla Stadium pitch in 
New Delhi on Wednesday evening.
"We are still keen to send the team to India. But after whatever 
has happened in the last 24 hours, the ball remains in the Indian 
court," PCB chief executive Majid Khan told Dawn from Lahore.
Majid Khan, who toured India twice with the cricket team, however, 
emphasised that the tour would transpire after seeking fresh 
approval from the Pakistan government.
"Naturally, after the latest incident the Pakistan government has 
been involved. They would receive a feed back from its High 
Commissioner (in New Delhi) on the basis of which they would be 
advising us (PCB)," stated Majid.
"At the moment, I am keen to send the team to India but the final 
decision would be made not before 10 days when the government 
advises us," he said, adding: "As far as we are concerned, the tour 
is on and stays that way until the government advises us 
The chief executive said the PCB is sending its own representative 
to assess the situation. "He would be calling on the Pakistan High 
Commissioner besides talking to the BCCI and other officials. Let's 
see what report he submits."
Majid Khan was of the view that the recent developments were both 
serious and non-serious.
"The event is non-serious in the context that it is not new that 
the pitch has been dug up by vandals. Last month when our `A' team 
was touring New Zealand, the pitch was damaged. Similarly, it has 
happened in the Test matches between Australia and England.
"But the serious aspect of it are the threats. If the Shiv Sena 
claims that they would assault Pakistani players, its a threat that 
can't be taken in casual manner."
Nusrat Azeem, the senior most PCB executive council member, said it 
was more a political move by the Shiv Sena "and the Pakistan 
government should tackle it that way. It is not sport where the PCB 
comes in."
"We want to create goodwill between the two countries. Now its upto 
the cricket board to take up the matter to proper channel 
properly," he added.
Hanif Mohammad, a former Pakistan captain, refused to comment 
whether the tour should take place. However, he said whatever has 
happened is in a bad taste.
"Sports brings the people closer. But a select group of people 
don't want that peace and harmony should be created between the two 
people. The digging of pitch and further threats are in a bad 
Waqar Hasan, former chairman of selectors, said it was a political 
matter and should be sorted out by the politicians of the two 
countries. "The cricket team is going there to play cricket and 
they should be allowed to do that.
"It is purely an Indian matter because it relates with the law and 
order. But if the Pakistan cricket team goes there, more goodwill 
would be created and the sport would flourish."
"If Mr Bal Thackeray has any problems, the Indian government should 
tackle it. Why cricket or Pakistan should suffer for their internal 
politics," Waqar, a former stylish Test batsman of yore, stated.
Intikhab Alam, who managed the Pakistan team to India for the World 
Cup quarter-finals, said: "The cricket team should go to India but 
if there is tension and the security is not upto mark, they can 
always come back. You see, the point here is that Indian Prime 
Minister has promised state security and you have to trust his 
Alam said when he took the team to Bangalore for the World Cup 
quarter-finals, the security was very tight. "I was very pleased 
the way my team was taken care of. There were commandos outside 
hotel rooms of the players and no one was allowed to go out without 
their (commandos) permission."
Haroon Rasheed, former manager, said the tour should take place 
otherwise it would set a wrong precedence. "Whosoever would want to 
disrupt the tour in future, would do wrong things to get it 
postponed and no cricket would ever be played between the two 
"It is one section which doesn't want the tour to materialize and 
if the Indian government is not ready to succumb to their pressure, 
why should we," he added.

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