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DAWN WIRE SERVICE
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Week Ending : 09 January 1999 Issue : 05/02
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Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
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Extracts, not exceeding 50 lines, can be used provided that this
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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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
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EDITORIALS & FEATURES
+ End of story Ardeshir Cowasjee
+ Zero tolerance Irfan Husain
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SPORTS
+ Wasim Akram named captain for Indian tour
+ Pakistan keen to send cricket team to India
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NATIONAL NEWS
990109
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US to fully certify Pakistan on March 1
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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
transported.
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"
certification.
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.
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990108
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India should resolve Kashmir issue: FO
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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.
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990108
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Labour laws to be simplified, pension increased: draft policy
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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
it.
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
production.
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
employers.
The commission will finalize its recommendations and submit to the
government within the year after its constitution and coming into
operation.
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
work.
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
machine.
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.
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990108
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Job quota bill tabled in NA
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Correspondent
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
services.
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
years.
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
opposition.
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
House.
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
debate.
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990109
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Govt withdraws notices against five IPPs
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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
ratification.
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.
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990104
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Altaf demands withdrawal of governor's rule
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Correspondent
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.
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990104
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National education policy: Sindh fails to submit report to centre
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Correspondent
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
construction.
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
engineer.
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990107
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Population control: Need stressed to seek ulema, NGOs' help
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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
programmes.
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
NGOs.
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
values.
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.
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990108
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Kot Addu power plant has fuel for two days only
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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
efforts.
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
situation.
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
Pakistan".
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990103
-------------------------------------------------------------------
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
===================================================================
BUSINESS & ECONOMY
990108
-------------------------------------------------------------------
Forex reserves up at $1.06bn
-------------------------------------------------------------------
Reporter
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.
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990108
-------------------------------------------------------------------
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
year.
Pakistan exported more than 2.055 million tonnes of rice in 1997/98
(July-June), compared to 1.767 million tonnes the previous year.
Reuters
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990108
-------------------------------------------------------------------
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
1998.
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".
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990108
-------------------------------------------------------------------
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.
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990107
-------------------------------------------------------------------
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
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990107
-------------------------------------------------------------------
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
figures.
State Bank officials were not available to say anything on this
issue.
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
here.
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.
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990105
-------------------------------------------------------------------
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,
1999.
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.
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990106
-------------------------------------------------------------------
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
schedule.
"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
matter.
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
Kapco.
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990105
-------------------------------------------------------------------
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
market.
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.
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990109
-------------------------------------------------------------------
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
official.
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
===================================================================
EDITORIALS & FEATURES
990103
-------------------------------------------------------------------
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
hill.
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,
snoozing.
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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
990109
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Zero tolerance
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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.
===================================================================
SPORTS
990104
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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
PCB.
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.
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990108
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Pakistan keen to send cricket team to India
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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
otherwise."
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
taste."
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
words."
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
countries.
"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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