------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 09 October 1999 Issue : 05/41 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Law, order situation to improve: COAS + Nawaz urges revival of Lahore process + India, Pakistan ready to sign CTBT: US + Sanctions waiver approved + Cabinet to review process of privatization + Terrorists getting training in Afghanistan + Pakistan-India talks next month likely: Sartaj + Shahbaz Sharif talks of intelligence report; flat denial by FO + Another Warrant against Benazir Bhutto + Azhar, others ask Nawaz to quit as PM, PML chief + JKLF Chief flays police for attempt on life + Jobless youth to get land free of cost, says PM + Hunger strike on 15th: GDA wants cases against PM expedited --------------------------------- BUSINESS & ECONOMY + Joint hearing of Hubco, Wapda pleas next week + IMF may release $280m next month + IMF asks Islamabad to increase oil prices + 10% Income Tax on saving scheme deposits being reviewed + Power tariff cut for industries likely + CBR for voluntary declaration culture + Incentive package for free zones + CBR re-imposes 2% warehousing surcharge + 87.59% rise in net ST collection + Investors welcome US waiver, BJP victory + Duty drawback on exports to CAS, Kabul allowed EDITORIALS & FEATURES + 'Round up the usual suspects' Ardeshir Cowasjee + Thank you, Nawaz Sharif Ayaz Amir + The view from the CCU Irfan Husain ----------- SPORTS + Jansher seeks wild card entry in Pakistan Open + Afridi and Akram recalled for Sharjah tour + Sialkot to host 2001 Champions Trophy + Shahid Zaman clinches U-19 Roshan Khan squash title

Law, order situation to improve: COAS

ISLAMABAD, Oct 4: Chairman of Joint Chiefs of Staff Committee and 
Chief of Army Staff Gen Pervez Musharraf on Monday described the 
law and order situation as, "bad," but hoped it would improve.

"Law and order situation is bad. It should improve. It will 
improve," he told a group of reporters at a reception hosted by the 
German Ambassador Hans-Joachim Daer to celebrate the day of 
Germany's unification.

To a query, whether the government has requested Army to assist it 
in the maintenance of law and order, he replied in negative. There 
are police and other law enforcement agencies to do the job, he 

When asked if the Army has received a letter from a religious party 
for curbing terrorism-related killings, he responded in negative.

Replying to a question on the resignation of former Naval chief, 
Fasieh Bukhari, he said, there were some other reasons for it. The 
Army chief said, he had no differences with him.

When asked if the country was heading for a joint command system, 
he replied in affirmative. He said, the Army had adjusted the 
command according to its requirements.-APP

Nawaz urges revival of Lahore process

ISLAMABAD, Oct 8: Prime Minister Nawaz Sharif rang up re-elected 
Indian Premier Atal Behari Vajpayee on Friday to congratulate him 
on his party's success in the general elections, officials said.

The call was the first since the May-July bloody conflict in 
Kashmir sparked tensions and derailed the dialogue process 
initiated after Vajpayee's landmark visit to Lahore in February.

Mr Nawaz Sharif told Mr Vajpayee the popular mandate he received in 
the Indian general election was "indeed a vote of trust and 
confidence" in his party.

It was also a tribute to Vajpayee's personal qualities of 
leadership, he was quoted as saying in the telephone call.

Officials said Mr Nawaz Sharif told Mr Vajpayee the two countries 
needed to "revive" the Lahore spirit and restore the normalisation 

During their historic summit the two leaders had agreed to 
intensify efforts to resolve their outstanding issues, including 
the 50-year-old Kashmir dispute that has caused two of the three 
wars between the two countries since 1947.

Officials said Mr Sharif called for "framing policies based on the 
understanding reached in Lahore."

Reaffirming the desire that Pakistan and India should establish 
good neighbourly relations, he said: "Let us join hands to give our 
peoples a bright and prosperous future." 

"He (Sharif) went on to say that the two countries needed to revive 
the Lahore spirit and restore the Lahore process with a view to 
framing policies based on the understanding reached in Lahore," the 
Pakistani statement said.

"The prime minister also reaffirmed his desire that Pakistan and 
India should establish good neighbourly relations," it added.

The statement quoted Sharif as telling Vajpayee: "Let us join hands 
to give our people a bright and prosperous future."

In Lahore, Sharif and Vajpayee signed a declaration pledging 
greater efforts to settle Kashmir and other issues and immediate 
steps to prevent an accidental nuclear clash.-Agencies

India, Pakistan ready to sign CTBT: US

WASHINGTON, Oct 5: The White House said on Monday both Pakistan and 
India had indicated they wanted to sign the CTBT as President 
Clinton and his administration launched a media and congressional 
blitz to gather the two-third majority in the Senate next week.

White House spokesman Joe Lockhart welcoming the "positive" Indian 
statement that New Delhi planned to sign the CTBT once the new 
parliament was in place, said both the countries "have indicated 
that they're willing to move forward and agree not to test."

"But I think that we are in a completely different world if the 
Senate votes this down and undercuts our ability to make this case 
around the world," Mr Lockhart said.

"The world is looking to us, and this is very important. This is 
something now for 30 or 40 years we have faced. We have faced the 
danger of modernizing nuclear arsenals. The world is looking for US 
leadership, and the Senate is responsible for dealing with that."

His comments came as President Clinton himself plunged deep into 
the debate and promised to make a public speech every day on CTBT 
to build up pressure on the Senate to ratify it.

Republicans, on the other hand, are confident that the two-third 
majority would not be available for CTBT. Bob dole's wife and 
presidential aspirant, Elizabeth Dole, dismissed President 
Clinton's push for CTBT as "wishful thinking."

She said in New Hampshire that at a time when America was naked to 
ballistic missile attack, there was no evidence that the CTBT would 
reduce proliferation.

Clinton personally took charge of the CTBT campaign on Monday.

"This is very important to protecting our people from the danger of 
nuclear war," the president said at the White House. "It would be, 
in my judgment, a grave mistake not to ratify the treaty."

Experts said a Senate rejection would mark the first defeat of a 
major treaty proposal in decades. A victory will be an important 
part of Clinton's positive legacy and vice versa.

Clinton acknowledged that he lacked enough votes in the Senate 
right now. While their leaders say all 45 Democrats support the 
treaty, only seven Republicans have come out in favour, leaving the 
White House 15 votes shy of the number it needs.

Helms is, however, strongly opposed to the treaty and said on 
Monday it was dangerous. Republican party leader Trent Lott said it 
should be defeated when it comes to a vote in the Senate next 

Clinton dismissed such concerns, saying if this treaty is ratified, 
there will be new tools to monitor the testing of others. The 
treaty calls for 321 monitoring sites and on-site visits by 

"Since we don't need nuclear tests, it is strongly in our interest 
to achieve agreement that can help prevent other countries, like 
India, Pakistan, Russia, China, Iran and others, from testing and 
deploying nuclear weapons," Clinton said.

Sanctions waiver approved
By Shaheen Sehbai

WASHINGTON, Oct 7: A key congressional committee voted unanimously 
on Wednesday evening to provide President Clinton indefinite waiver 
authority to lift military and economic sanctions on Pakistan and 

The amendment for the authority, moved by Senator Sam Brownback and 
commonly known as Brownback-2, is now almost assured a smooth 
sailing through the full houses of the Senate and House of 
Representatives as part of the larger Defence Appropriations Bill.

The language approved by the committee practically takes away all 
the bite and sting of the Pressler Amendment without actually 
repealing the infamous law and is being viewed on the Hill as the 
biggest ever Pakistani victory in Congress.

The final waiver came only after an epic battle between Pakistani 
and Indian lobbies and last minute long-distance interventions by 
Foreign Minister Sartaj Aziz, Petroleum Minister Chaudhry Nisar Ali Khan,
Pakistani lobbyist Charlie Wilson and a prominent Pakistani-
American Mansoor Ijaz, who used his clout with the Clinton 
Administration and key senators to pull it through.

Congressional experts said the waiver authority was enough for 
President Clinton to remove all restrictions on Pakistan, including 
those on military sales including aircraft, tanks and other 
equipment as well as spare parts.

"This would be enough for Pakistan to declare that the coercive 
atmosphere that existed has now been removed, paving the way for 
Islamabad to sign the CTBT," these experts said.

The committee adopted the final version of the amendment after 
Conference Committee Chairman, Senator Ted Stevens from Alaska, 
gave his go ahead, but not before Islamabad moved fast and 
decisively to resolve a multi-million dollar dispute with an 
Alaskan Pipeline Company.

Pakistan's biggest victory against an Indian lobbying juggernaut 
headed by former Republican Party chief Bob Dole, former 
congressman Steven Solarz and former senator Larry Pressler was 
mainly due to the team efforts of the Pakistani- Americans and 
their lobbyist who used their influence to get the hurdles past 
upto the last minute. The Embassy coordinated their effort.

The last formidable hurdle which threatened to derail the process 
was the pending problem with an Alaskan pipeline company, VECO, 
which had lobbied hard on Alaskan Senator Ted Stevens to get their 
case sorted out before Stevens voted for the waiver law.

Stevens, who chairs the key conference committee, and who is also 
the chairman of the defence appropriations committee with the last 
word on what his committee passes, put his foot down and in the 
last 24 hours Islamabad was told to either agree to VECO's demands 
or risk the entire process being put off for months, or even years.

Mansoor Ijaz and Pakistani lobbyist former congressman Charlie 
Wilson, worked on the telephone for 20 hours, talking several times 
to Foreign Minister Sartaj Aziz and other high ups to get the VECO 
issue out of the way. The matter was rushed to the cabinet meeting 
on Wednesday morning and a decision was taken to involve the World 
Bank as an arbitrator in the dispute.

Cabinet to review process of privatization
Bureau Report

ISLAMABAD, Oct 5: The federal cabinet is meeting here on Wednesday 
to discuss and approve a number of proposals to accelerate the 
process of privatization in Pakistan.

Official sources said here on Tuesday that the cabinet will also 
consider the recommendations of a three-member committee to 
disinvest major industrial units as well as commercial banks during 
the current financial year.

The committee is headed by Chairman Privatization Committee Khawaja 
Muhammad Asif and Chief Minister Punjab Mian Shahbaz Sharif and 
Chairman Pakistan International Airlines (PIA) Shahid Khaqan Abbasi 
are its members. This committee was set up by the prime minister in 
September and was asked to remove hurdles in the way of 
privatization. It was also asked to remove all those bureaucrats 
from their jobs who were opposing the disinvestment process.

Sources said that the chairman Privatization Commission will brief 
the cabinet about the latest situation for disinvesting Pakistan 
Telecommunication Company Limited (PTCL), Karachi Electric Supply 
Corporation (KESC), Habib Bank Limited (HBL) and United Bank 
Limited (UBL).

The cabinet will also discuss an action plan to rejuvenate the 
capital market, and to restore the confidence of the foreign 

Terrorists getting training in Afghanistan
Bureau Report

ISLAMABAD, Oct 7: The government has laid its hands on concrete 
evidence that people are being trained in Afghanistan to undertake 
sectarian killings and terrorism in Pakistan.

"We have with us a solid proof that there exist training camps in 
Afghanistan, which are training terrorists and sending them into 
Pakistan to kill our people," Prime Minister Nawaz Sharif said.

"But we have told the Taliban government and its head Mullah Omar 
that they should immediately remove these camps so that sectarian 
killings and other incidents of terrorism in Pakistan could be 

Addressing a news conference here on Thursday, he said his 
government would not allow anyone to create law and problem. "This 
is just unacceptable to us and we hope that the Taliban government 
would respond to our complaint by immediately removing those 
camps," he asserted.

It was Punjab Chief Minister Shahbaz Sharif who first alleged in 
Lahore last week that terrorists were being trained in Afghanistan 
to carry out sectarian killings in Pakistan.

However, a Foreign Office spokesman on Wednesday stated that 
Taliban were not in any way involved in promoting sectarian 
violence in Pakistan. "On the contrary, the Taliban government has 
itself issued a statement denouncing such incidents. Afghanistan is 
a brotherly country which has no interest at all in promoting 
terrorism in Pakistan," the spokesman said.

Asked if the Taliban government did not oblige Pakistan over the 
issue, the prime minister said "then we will have to rethink about 
it to take some other course".

The prime minister told newsmen that recently the director- general 
of the Inter-Services Intelligence had led a delegation to Kandhar 
where it met the Taliban leaders, including Mullah Omar, and raised 
the issue of training camps in Afghanistan.

Pakistan-India talks next month likely: Sartaj
Hasan Akhtar

ISLAMABAD, Oct 3: Foreign Minister Sartaj Aziz expressed the hope 
on Sunday that Pakistan and India could resume their stalled 
dialogue process in mid-November when both the prime ministers 
would attend the next conference of the heads of the Commonwealth 
countries in Durban.
The foreign minister, who returned to the capital on Saturday night 
after attending the UN General Assembly session in New York, said 
at a news conference here at the Foreign Office that a meeting 
between the leaders of the two countries was possible next month in 
Durban following the induction of a new Indian government in New 
Delhi after the current polls in that country.
Mr. Sartaj Aziz, responding to questions, said that after meeting 
the UN Secretary General Kofi Annan and 24 foreign ministers with 
whom he exchanged views on important regional issues, including the 
Kashmir dispute and the proposed Indian nuclear doctrine, he found 
that they were also deeply concerned over the regional security 
situation and urged Pakistan and India to move quickly towards the 
resumption of the Lahore process and reopening of the peace and 
security dialogue.
Although, Indian Foreign Minister Jaswant Singh was also in New 
York for the UN General Assembly session, yet the two foreign 
ministers did not see each other. However, Indian interim prime 
minister Atal Behari Vajpayee, during his election campaign, had 
indicated that the stalled talks would be resumed after the 
formation of the new government in New Delhi later this month.
The foreign minister said it was premature to say when the summit-
level talks would take place. He however, emphasised that the 
attention of the international community was focussed on an early 
resumption of Pakistan-India dialogue, which reflected its deep 
concern over the existing to peace and security in the region.
To a question about the number of American congressmen and senators 
requesting President Clinton to nominate an envoy on Kashmir issue 
for promoting its settlement, Mr. Aziz said the US and the UN 
wanted both India and Pakistan to concentrate on ways to resume the 
bilateral dialogue.
Mr. Aziz, who explained his engagements in New York and Washington 
where he met US Secretary of State Madeleine Albright, said that 
during his discussions with other foreign ministers he had 
emphasised on the serious threat to regional and global peace 
because of the Indian nuclear ambitions to acquire the status of a 
big nuclear power, raising its previous benchmark of acquiring a 
minimum nuclear deterrence.
He said that in his address at the UN General Assembly and during 
his individual meetings with the G-8 government leaders and other 
foreign officials, he urged them to react strongly and promptly 
against the Indian nuclear doctrine drafted by the Indian Security 
This was because, he said, once the draft doctrine was formalised 
and accepted by Delhi, it would be very difficult to persuade it to 
lower the scope of the doctrine.
The foreign minister said that while the Pakistani concern was 
generally recognised by the international community, the US 
secretary of state stressed the importance of the CTBT, asking 
Islamabad to sign it.
Mr. Aziz said he had told the US secretary that Pakistan remained 
committed to the prime minister�s declaration at the last session 
of the UN General Assembly that it would adhere to the CTBT once 
the atmosphere of international coercion and pressure on it was 
removed, which basically meant the withdrawal of the economic and 
other sanctions against Pakistan.
Pakistan would take action in this regard when the outcome of the 
US Congress, which was deliberating on the issue of sanctions, was 
known. So far, the US government had not met the pre-requisite of 
removing the sanctions and, thereby, preventing Pakistan from 
acting on its last year�s assurance of signing the CTBT, said the 
foreign minister.
He said that Pakistan had also discussed at length with other 
government leaders and UN officials the issue of sanctions against 
Afghanistan as proposed by the US and Russia in the United Nations.
Pakistan asked the world powers to join in its initiative to get 
the opposing sides in Afghanistan to come to the negotiating table 
to end the war and restore peace.
He impressed upon the US and Russia that their assistance for 
rehabilitation and reconstruction in Afghanistan would serve the 
objectives of peace and regional security better than the sanctions 
they intended to slam on the devastated country.
Besides, highlighting the continuing struggle of the Kashmiri 
people against the Indian domination as shown by their almost total 
boycott of the Indian polls in the Held Kashmir, the foreign 
minister said he had also proposed calling an international 
conference - to be participated by permanent members of the UN 
Security Council besides Pakistan and India - to ensure nuclear and 
conventional restraints and prevent an arms race in the South Asian 
He said that Madam Albright had informed him that President Bill 
Clinton would be visiting Pakistan early next year but had not 
given him any date.
Sartaj hoped that after the Indian polls when Pakistan and India 
would resume dialogue, President Clinton would take personal 
interest in promoting the dialogue towards the settlement of the 
Kashmir dispute.

Shahbaz Sharif talks of intelligence report; flat denial by FO
Ansar Abbasi

ISLAMABAD, Oct 6: The reported statement of the Punjab Chief 
Minister, Mian Shahbaz Sharif, in which he had accused the Taliban 
of backing sectarian violence in Pakistan, has stunned the high 
authorities here.

The Foreign Office has formally regretted what it termed "the 
baseless speculation and incorrect reporting in some sections of 
the media, claiming that the Taliban government of Afghanistan is 
allegedly involved in recent incidents of terrorist violence in the 

Sources in the relevant agencies of the federal government have 
expressed complete ignorance about the availability of any 
intelligence report that could support what the Punjab CM was 
reported to have said in his talk with newsmen at Lahore on 

They said the Punjab delegation which had attended an inter-
provincial meeting on Monday, a day before the CM's reported 
statement, did not mention a word about the Taliban backing the 
sectarian violence in Pakistan.

"There was absolutely no mention of the Taliban in the meeting 
which was called merely to discuss sectarianism," a source who 
attended the meeting said.

The Punjab Chief Secretary, A.Z.K. Sherdil, however, told Dawn by 
telephone from his Lahore residence that some intelligence reports 
did suggest that religious extremists from Pakistan got training in 
Afghanistan and before joining sectarian violence in the country.

He said these intelligence reports maintained that such elements 
received training in camps inside Afghanistan, had fought along 
with the Taliban against the Afghan opposition, and had infiltrated 
into Pakistan and were involved in sectarian violence. "We are 
quite concerned about this situation and want a comprehensive 
policy to check this movement across the Pakistan-Afghan border," 
Mr Sherdil said. He, however, denied that there was any mention, in 
these intelligence reports, about Riaz Basra's protection by the 

The chief secretary said there was massive gun-running from 
Afghanistan to the tribal areas in Pakistan from where the weapons 
came to the NWFP and then supplied to other provinces. He said 
since the Pakistan-Afghan border was not properly manned, this 
practice continues.

However, official sources in the federal government totally deny 
having seen any such intelligence report. But some sources believe 
that the Punjab chief minister who has recently returned from an 
"important US trip" had taken an initiative to dissociate Pakistan 
from the Taliban and Afghanistan.

Meanwhile the Foreign Office, in a press statement issued here on 
Wednesday evening, regretted "the baseless speculation and 
incorrect reporting in some sections of the media, claiming that 
the Taliban government of Afghanistan is allegedly involved in 
recent incidents of terrorist violence in the country." 

Another Warrant against Benazir Bhutto
Bureau Report

ISLAMABAD, Oct 6: The Ehtesab Bench of the Lahore High Court, 
Rawalpindi, on Wednesday issued another non-bailable warrant for 
the arrest of opposition leader Benazir Bhutto in a reference in 
which it was alleged by the prosecution 
that she had made property with the money obtained through illegal 

Comprising Justice Ehsanul Haq Chaudhry and Ghulam Mahmud Qureshi, 
the bench also issued notice to Misbah Rehman, the guarantor of Ms 
Bhutto, to explain why her surety should not be forfeited.

The case will now be taken up on Oct 14.

The same bench had issued a non-bailable warrant against Ms Bhutto 
on Tuesday in the Ursus tractors case.

Special prosecutor Ali Sibtain Fazli told the court that Ms Bhutto, 
one of the accused in the Ehtesab reference case No 26, was not 
present before the court. He submitted that the exemption from 
personal appearance was not for indefinite period.

The court allowed the receivers of four sugar mills in Sindh - 
Sakrand, Mirza, Pangrio and Bachani - to continue their work. The 
receivers were appointed by another Ehtesab bench when the 
prosecution had alleged that all the sugar mills were owned by Asif 
Ali Zardari through his front men.

In their application, the receivers contended that most of the 
liabilities of the sugar mills were cleared and they should be 
allowed to negotiate with banks for rescheduling of loans. The 
court delayed till Oct 14 the decision whether to permit them for 
holding talks with the banks.

Earlier, the Ehtesab bench had frozen the accounts of these sugar 

The court rejected the petition of Fehmida Mirza who had stated 
that being adviser of the Mirza Sugar Mills she should be given 
share in the profit.

The court also rejected the applications filed by the family 
members of three alleged front men of Mr Zardari - Ghani Ansari, 
Iqbal Memon and Abdul Sattar Kerio. They had stated that their 
agriculture lands, which were frozen with other assets, should be 

The court, however, accepted the application of Iqbal Khan whose 
plaza on the Clifton Road, commonly known as Fortune Plaza, had 
been frozen as the Ehtesab Bureau had alleged that Mr Memon, too, 
was a front man of Senator Asif Ali Zardari.

Azhar, others ask Nawaz to quit as PM, PML chief 
Ashraf Mumtaz

LAHORE, Oct 7: Dissident PML MNA Mian Azhar and his supporters from 
the four provinces stepped up their campaign against the government 
here on Thursday by holding a meeting and demanding that Mian Nawaz 
Sharif should quit both as prime minister and PML president 
because, as they put it, he had failed to deliver as country's 
chief executive and as well as head of the party.

The meeting was held at Azhar's Garden Town residence. Three 
sitting MNAs and many elected councillors and some former 
parliamentarians were present. It was first such high-level meeting 
after the removal of Mian Azhar as Punjab PML senior vice-president 
some weeks ago.

The list of the participants was not given to reporters as Mian 
Azhar said he would not like to create any problem for his 
sympathizers and supporters. He alleged that the government had 
already started using strong arm methods against his 'loyalists'.

A workers' convention will be held at the Qadhafi Stadium, Lahore, 
on Oct 17 to work out the future course of action. Sources close to 
the former governor say that Mian Azhar was not planning to set up 
any parallel faction of the PML. Instead, they say, he was trying 
to mount public pressure on the prime minister to step down. "We 
want to take over the party with the public support," an aide to 
the former governor said.

After the workers' convention, Mian Azhar plans to address various 
bar associations to muster support for his mission. Some charged 
supporters of the dissident PML leader raised the slogans of "prime 
minister Mian Azhar" but the former governor discouraged them, 
saying he would not like to be flattered like Mian Nawaz Sharif as 
flattery made one proud and arrogant.

Power supply remained suspended for quite some time but the meeting 
proceedings continued un-interrupted. Intelligence people sat 
outside the boundary wall of the former governor's residence to 
take note of all speeches.

Addressing a news conference at the end of the meeting, Mian Azhar 
said the national interest demanded that Mr Sharif should give up 
the government as well as party offices so that new prime minister 
and party head could be elected. He said Mr Sharif had lost the 
mandate after his failure to control the law and order, inflation, 
honour the commitments he had made through the manifesto, and 
disgraceful withdrawal from Kargil.

Refusing to comment on the possibility of a no-confidence vote 
against the prime minister, the former governor claimed that 99 per 
cent of party legislators had harmony of thought with him.

When it was pointed out that not a single other PML leader was 
reported to have opposed the government on any account, Mian Azhar 
argued that legislators were keeping silent because of the 14th 
constitutional amendment - which prohibits parliamentarians from 
speaking against their party policy.

Replying to a question, he said his actions did not fall within the 
mischief of the amendment because he was making statements against 
the leadership outside the premises of parliament.

JKLF Chief flays police for attempt on life

ISLAMABAD, Oct 6: Amanullah Khan, chairman Jammu Kashmir Liberation 
Front (JKLF), claimed here on Wednesday that police tried to kill 
him while he was leading a march to cross the Line of Control which 
was blocked.

There was a very serious attempt on my life during our struggle to 
cross the Line of Control with our companions, he added.

Addressing a press conference here at a local hotel after his 
release from Hajira Police Station, the JKLF chief said that 
although he had formally called off the march towards the LoC for 
the time being but he would definitely fulfil his desire to make 
another attempt at some appropriate time along with thousands of 

Condemning the action taken by the authorities to block the march, 
alleging that his several colleagues were severely beaten and he 
himself was narrowly escaped from being fatally wounded. At one 
point some functionary virtually tried to strangle him to death, he 

"We have achieved 80 to 90 per cent of our objectives and the 
remaining 10 per cent we would achieve soon. There is a question of 
survival not only for Kashmiris but for Pakistan too", he remarked.

"We do not change our stand with the change of time and change of 
place. Our stand remains the same, that is freedom and not chair. 
We do not believe in guns only rather we believe in diplomacy, 
political movement and guns", the JKLF chief observed.

Jobless youth to get land free of cost, says PM

ISLAMABAD, Oct 7: Prime Minister Nawaz Sharif on Thursday said, 
government has decided to distribute arable state land among 
jobless, landless and educated youth, free of cost, to enable them 
earn a respectable livelihood.

Announcing "PM's programme for state land development for educated 
unemployed in the rural areas," at a press conference here on 
Thursday, he said those with an agriculture degree would get top 
priority in this regard. The youth with a diploma in the 
agriculture would get the second priority while those having other 
degrees would get the third priority.

Nawaz Sharif said a different subsistence level has been decided 
for four provinces under which the allotment of land would range 
from twelve and a half to thirty two acres of land. There is also a 
different criterion to allot irrigated and un-irrigated land, he 

This decision, he said, was taken after thorough discussion of the 
cabinet on Wednesday which was attended by the chief ministers of 
the four provinces who lent full support to it.

Nawaz Sharif said the efforts of the government would be to allot 
fertile land to the youth near their own villages or districts.

Agricultural Development Bank, he said, would give loan to them on 
priority basis. They will get loans to install tubewells as well.

The allotment of land would be made through a computerized 
balloting of the applications received from the youth of four 
provinces, he said.

The prime minister said, eighty out of hundred youth passing out on 
a yearly basis from our educational institutions opt for government 
employment. Since giving employment to this large number of 
educated men is not possible, it is imperative to find out avenues 
for self-employment for them so that they could become useful 

He said, the scheme of 'tehrik-e-ilm' as well as grant of state 
land were two major national uplift plans, which lay stress on 
"depending on Pakistan's own resources for achieving a rapid 
national development."

The state and acquired land will be allotted to the educated 
unemployed free of cost. The eligibility criteria will be that the 
applicant should be a degree holder, unemployed and without 
possession of land.-APP

Hunger strike on 15th: GDA wants cases against PM expedited 
Bureau Report

PESHAWAR, Oct 7: The Grand Democratic Alliance has announced it 
will observe hunger strike in front of the Supreme Court at 
Islamabad on Oct 15 to press the apex court to expedite pending 
cases against Prime Minister Nawaz Sharif and against his 
government's "extra-constitutional" steps.

The announcement to this effect was made at a GDA public meeting 
held at Jinnah Park here on Thursday presided over by ANP 
President, Asfandyar Wali.

The meeting was addressed, besides ANP president, Makhdoom Amin 
Fahim, Nawabzada Nasrullah Khan, Imran Khan, Maulana Tahirul Qadri 
and Afrasyab Khattak.

Hamid Nasir Chattha, Manzoor Watto and others were also present on 
the occasion.

GDA leaders criticized the government for mishandling the Kargil 
issue which helped Prime Minister A.B. Vajpayee to win Indian 
elections and isolated Pakistan in world.

The GDA leaders vowed to get expedited from the SC several cases 
pending since long against Nawaz Sharif. They said that the 
Constitution had been suspended and democracy was being replaced 
with dictatorship.

The opposition leaders through a resolution urged the SC to take up 
the long-pending cases of corruption against Nawaz Sharif as well 
as petitions filed against the government for introducing emergency 
in the country and governor's rule in Sindh and inducting an non-
elected set up in Sindh. 

The speakers took exception to a statement of Finance Minister 
Ishaq Dar therein he has given indication of increasing in the POL 

They said the GDA would hold protest ralliesthroughout the country 
on Oct 25 against the introduction of agriculture income tax in the 
Frontier province, fixation of low prices for cotton, introduction 
of GST on electricity and the increase in the petroleum prices.

"I challenge Nawaz Sharif that people earning only Rs3,000 a month 
how they would meet their expenses under the existing price hike," 
said the cricketer-turned-politician Imran Khan.

The leaders blamed the government of resorting to extra-judicial 
killings in Karachi and carrying out the so-called and uneven 

Asfandyar Wali Khan said that it was the need of the hour that "a 
new Pakistan is to be created wherein all the four provinces enjoy 
equal rights and no one among them has an upper hand over any other 
federating units".

He said: "ANP is not against Punjab, it just wants rights to 
Pakhtoons as enjoyed by the people of other provinces". 

Joint hearing of Hubco, Wapda pleas next week
Bureau Report

ISLAMABAD, Oct 8: A three-member bench of the Supreme Court on 
Friday decided to hear together an appeal of Hub Power Company 
(Hubco), challenging Sindh High Court order of restraining it from 
arbitration proceedings, and Wapda's petition for impugning Hubco's 
decision of calling sovereign guarantees of Pakistan, from next 

When the Hubco application against the SHC order of Aug 11, 1999, 
was taken up on Friday the court decided to fix its hearing next 

No fix date was announced as the bench referred the matter to the 
chief justice with the observation that it would be appropriate if 
it was fixed for hearing next week.

Under the SC rule it is the prerogative of the chief justice to fix 
dates for hearing of cases.

The SC bench consisted of Justice Khalilur Rehman Khan, Justice 
Munir A. Sheikh and Justice Wajihuddin Ahmed.

The Hubco counsel, Abdul Hafeez Pirzada, contended that the matter 
was of urgent nature as the lenders of Hubco were meeting in the 
last week of October. He urged the court to decide the matter 
before that meeting.

He stated that the World Bank and subordinate banks had given $500 
million guarantee to Hubco and if that guarantee was called the 
consequences would be of grave nature.

Mr Pirzada made it clear that the court had no jurisdiction over 
the World Bank and other lending agencies.

He requested that the hearing of the case should be started as 
early as possible.

When Justice Khalilur Rehman observed that proceedings before the 
Supreme Court were used by the "parties" for pressuring others, the 
counsel protested against the remarks.

Mr Pirzada said that the remarks were "uncharitable" towards his 
client. Justice Rehman observed that the remarks were not against 
his client and he had misunderstood him.

Meanwhile, Wapda on Friday deposited Rs245 million with the SC 
registrar. On September 28 when the court had restrained the Hubco 
from calling the Government of Pakistan sovereign guarantee, it had 
directed the Wapda to clear the dues which it had required to pay 
in accordance with the court order.

IMF may release $280m next month

WASHINGTON, Oct 5: The IMF officially confirmed on Tuesday that 
talks with Pakistan had not yet concluded thus pushing the release 
of the $280m tranche for several weeks, most likely into November.

An IMF spokesman said the discussions held between Finance Minister 
Ishaq Dar and senior Fund officials were continuing and no final 
outcome had yet been reached.

The spokesman would not elaborate or go into details as the "talks 
are going on" but other IMF officials and sources said the IPPs 
issue and some other sticking points had to be resolved before the 
IMF process to circulate the agenda to the executive board begins.

These sources said it was almost certain that if everything else 
went well, the executive board meeting on Pakistan would be held in 

Mr Dar, who met IMF managing director and other senior officials 
left Washington without making any comment on his talks as a senior 
Pakistani diplomat attached to him repeatedly told journalists he 
was trying to work out a deal on "one on one" basis with Hubco.

The IMF is waiting for a green signal from the World Bank on the 
IPPs and Hubco issue but officially they would not admit that this 
was the sticking point.

A senior official, however, said whenever there was trouble with 
the IMF, the World Bank waited before releasing any money to any 
country until that trouble was resolved. "The IMF does the same as 
this is our arrangement."

IMF asks Islamabad to increase oil prices
Ikram Hoti

ISLAMABAD, Oct 6: The International Monetary Fund (IMF) has asked 
Pakistan to increase petroleum prices to match the latest surge in 
prices in international market and resolve IPPs issue.

The increase in the petroleum prices is one of the major 
prerequisites for the release of $280 million tranche from the $1.6 
billion IMF loan under ESAF/EEF arrangement, said Finance Minister 
Ishaq Dar at a press briefing at the Central Board of Revenue (CBR) 
here on Wednesday.

Mr Dar, however, said the IMF had been clearly told that "we cannot 
pass the entire burden of the petroleum price increase on the 

In the last two-and-a-half weeks, the minister said, the POL prices 
had witnessed an increase of 30-43 per cent in the international 
market. He added that the motor spirit prices jumped from $18 a 
barrel in July to $26 in October, while the furnace oil prices 
soared by 43 per cent this quarter, he said.

The minister said adjustment of POL prices would pave the way for 
the early release of IMF tranche. The condition for rupee 
devaluation was, however, out of question, Mr Dar said.

The minister pointed out that the IPP issue, specially the Hubco, 
was also causing problems in the release of the tranche.

Talking about his meetings with the IMF and the World Bank 
officials with reference to the Hubco issue, Mr Dar claimed that 
the donors did appreciate that Pakistan government was unflinching 
on its stance to settle IPP issue.

He said Pakistan had not dropped its basic demand of getting power 
tariff reduced by the IPPs and that a final round of talks between 
the GoP and Hubco was still to be held in London.

The minister hoped that all irritants would soon be removed to 
reach an agreement with the IMF which would pave the way for 
release of the tranche.

He said it would take another week or so to reach an agreement when 
almost all the major hurdles would have been removed.

Mr Dar explained that all the issues relating to implementation of 
the agreements with Hubco did not pertain to the government's 
policies. There had been legal obstacles in the way of meeting 
Hubco's demands as there were certain cases filed in the courts 
preventing Hubco from benefiting fully from the basic power 
purchase agreement.

The minister said Hubco demanded withdrawal of all cases and 
litigations before any negotiation. "We told them that withdrawal 
of some of the cases could be considered but scrapping of all the 
cases is difficult as there are certain issues on which the Wapda 
and the government have no control."

The Hubco officials, he said, had now been told to take a decision 
for further negotiations on the issue. The next meeting, he added, 
would be held in the presence of WB observers.

10% Income Tax on saving scheme deposits being reviewed

ISLAMABAD, Oct 5: Central Board of Revenue and Central Directorate 
of National Savings (CDNS) have decided to coordinate on referring 
for review the imposition of 10% Income Tax on National Saving 
Scheme deposits.

In this connection, a meeting between the senior CDNS and CBR 
officials took place at the Revenue Division Monday which resulted 
in an undertaking that the matter be thrashed out for exploring the 
possibility of making such a reference to the Ministry of Finance.

The two sides focused on the IT deduction from deposits of National 
Savings which matured in their respective time period under 
different schemes, immediately before or after the imposition of IT 
on Sept 8, '99.

CDNS has been approached in the post IT-imposition period by 
several depositors saying their National Savings certificates had 
either matured for profit or were about to mature.

Their contention is that since they had purchased the National 
Savings certificates under circumstances when their was no policy 
of IT deduction, the government should not deduct IT from profits.

They plead that the long waiting for profits on their hard-earned 
savings had resulted in about zero dividends due to the IT 
deduction notification. They further prayed that under no operative 
legal authority the government could notify to deprive depositors 
of the portion of their profits which they had earned during a 
period when their was no condition of IT deduction.

The notification of deducting IT on matured or about-to-mature 
deposits meant taxation and deduction on earnings with a back-dated 
effect, they had contended.

The CDNS decided to take up these contentions of depositors with 
the CBR and the two sides reportedly agreed that the back-dated 
effect of the IT-deduction notification on matured or near-maturing 
deposits be listed as an area for review.

The CDNS and CBR officials agreed to sit together again and form 
basis for a CBR reference to the Ministry of Finance seeking policy 
guidelines on the issue.

These guidelines, said sources, would be sought on whether the IT 
deduction should be restricted to the deposits made after the 
announcement of 10% deduction. 'If such a reference is made, there 
is a hope that the government would reconsider IT deduction from 
the profits of matured and nearly-maturing National Savings 
deposits', said officials.

Power tariff cut for industries likely
Ansar Abbasi

ISLAMABAD, Oct 5: The ministry of water and power has recommended 
over 50 per cent cut in the industrial electricity tariff, it was 
learnt here on Tuesday.

Sources told Dawn that the proposed summery had been forwarded by 
the ministry for the consideration of the economic coordination 
committee (ECC). In case the summery is approved by the ECC, the 
matter will be referred to NEPRA for a final decision.

The ministry proposed the abolition of all the existing four slabs: 
B-I, B-II, B-III and B-IV and suggested that only one slab should 
be introduced.

The recommendation says that the existing industrial tariff of 
Rs6.5 per unit (inclusive all charges) be reduced to Rs3.00 per 
unit. It is also suggested that if some industry is consuming 
electricity beyond a certain limit (to be set by the government), 
the tariff be further reduced.

"Wehave recommended the utilisation ofthesurplus electricity 
available with the Wapda to support the country's dying industry," 
said a source, adding that it would also enhance Wapda's income.

Thepresent industrial tariff, the summerysaid,is prohibitive and it 
discourages consumption of electricity. In the present situation 
the industries are setting up private power units.

It is said that almost 2,000 MW surplus electricity is available 
with the Wapda, which can not be stored and is wasted. "We were 
earlier expecting to sell the surplus electricity to India but the 
idea could not materialise," a source said, adding, "now we see the 
industrial consumption as the next hope to increase Wapda's 
revenues by utilising the surplus power."

The sources believe that the rationalization of industrial tariff 
will help in the revival of the country's history. During the last 
five year, it is said, the industrial consumption of electricity 
remained the same mainly because of expensive power. The summery 
also said that the electricity losses for industrial sector had 
been minimum and the recovery of Wapda dues were much better.

Since the law authorises the NEPRA to fix electricity rates, it was 
decided to get the "in principle" approval of the ECC and then put 
the matter before the NEPRA with a proposal to reduce the 
industrial tariff.

CBR for voluntary declaration culture
Ikram Hoti
ISLAMABAD, Oct 7: The Chairman of Central Board of Revenue has said 
that though the first quarter's collection of Rs 71.2 billion 
reflects increased potential of tax deposits for the rest of the 
financial year 1999-2000, there exists impediments in the way of 
revival of the industrial sector, which might dash the hopes of 
better collection.

In an interview with Dawn after the final computation of the July-
September tax-collection figures, Mian Iqbal Farid said he had an 
agenda of completely phasing out the procedural and administrative 
aspects of the tax policies which discourage the taxpayer from 
revealing the actual income.

The long-standing complaint (from trade and manufacture sector) of 
high Gross Profit Rate (GPR) in assessing Income Tax, he conceded, 
has been one of the basic impediment in the way of entrenchment of 
the Income Tax culture.

"However, now we have an open-door policy on this issue, and all 
the sectors would be invited to negotiate for a viable GPR. I am 
aware of the fact that without doing this we would not be able to 
create a voluntary turnover declaration culture."

He said: "without a voluntary turnover declaration culture and 
without taking decisive steps for revitalizing the economy, the 
expectations of better tax collection would not be realized".

Explaining the basic causes of lack of optimism despite having 
surpassed the first quarter's target of Rs 70 billion, he said a 
complete immunity on capital and wealth source declaration for the 
past for the taxpayers willing to voluntarily declare their 
turnover for the future, is imperative.

"I am even in favour of only one-point and one-tax-head depositing 
by the taxpayer. That is why I have issued strict orders for only 
one-time audit of the taxpayer collectively, under all tax-heads. 
But that would have to wait for a time when we create the required 
system for this purpose. The first step in this direction, as far 
as I perceive, would be restructuring of the CBR administration, 
which is already under way, and the procedural re-engineering which 
a foreign consultancy firm (Maxwell Stamp) has already undertaken."

These steps, he said, are aimed at reaching a point when the 
taxpayer, "without fear of the ledger-scanning by the tax 
officials, would be declaring the turnover at least close to what 
the actual for an assessment year is. We have, for the first time, 
through the USAS 1999-2000 announced that the turnover declared by 
the assessee would be accepted without any questioning. That is the 
first step in the direction of ensuring a voluntary turnover 

Once a success is achieved in getting the assessees declare their 
turnover voluntarily, the steps needed for further encouraging them 
for improved documentation would be taken, "and all this would be 
aimed at creating a culture of voluntary declaration of which, 
under the present circumstances, one would not even dream".

When his attention was drawn toward the fact that the ITofficials' 
high handedness and their harassing tactics had also made the trade 
sector shy away from accepting the documentation required under the 
GST system, he said "we need to create GST culture even at the cost 
of revenue.

A gradual process of collection and consistent net-expansion 
through registration and documentation is the fundamental principle 
of creating GST culture. The discouraging role played in this 
regard by the Income Tax department would be taken good care of".

He invited representative bodies from all the sectors to negotiate 
on what annual GPR their respective sectors should have as basis 
for determining the ratio of tax.

The present input-output ratio, he said, was faulty and thus not 
helpful in scientifically determining the actual payable tax by a 
certain sector. "My experience tells me that the taxpayer tends to 
be evasive and the tax collecting officials resort to high 
handedness under an irrational input-output ratio.

A realistically determined GPR is possible only after negotiating 
it with the trade bodies at the start of each financial year, 
immediately after the budget is launched".

Incentive package for free zones

KARACHI, Oct 4: A high-level committee on Monday finalized its 
deliberations on incentive package for bringing about improvement 
in free zones of the country. After threadbare discussion and 
looking into pros and cons of the impact of free zones on national 
the committee members drew up recommendations for submission to the 

Secretary, Ministry of Industries and Production, Abu Shamim Ariff 
chaired the meeting and Secretary, Ministry of Labour and Manpower, 
Zafarullah Khan, Chairman CBR and Secretary, Revenue Decision, 
Iqbal Farid participated.

Chairman Export Processing Zones Authority (EPZA) Maqsood Ismail 
briefly gave a presentation on the present working of the Export 
Processing Zones (EPZs) in the country and said that without bring 
the incentives package at par with those of the region the progress 
would remain slow.

He stressed upon giving incentive package to improve the 
performance of not only the present KEPZ units but for attracting 
future investment in the additional 300 acres expansion plan, also. 
Maqsood Ismail gave details about the upcoming new free zones at 
Risalpur and Sialkot.

The committee members directed the EPZ management to undertake 
vigorous and regular marketing publicity promotion campaign locally 
and abroad. The meeting was specially arranged at Karachi Export 
Processing Zone so that the committee members could physically view 
the level of infrastructure development, factories in-operation and 
availability of one window-operation in the zone for securing 
first-hand information.

CBR re-imposes 2% warehousing surcharge

ISLAMABAD, Oct 6: Central Board of Revenue has re-imposed 2 per 
cent warehousing surcharge over and above the customs duty on goods 
other than consumer goods for the second quarter and the rest of 
the financial year 1999-2000.

In this connection, a Customs General Order No 40, dated October 4, 
1999, has been issued by the CBR here on Wednesday which explains 
that the 2 per cent surcharge removed for the first quarter of the 
current financial year, has been re-imposed.

The CGO-40 reads: The issue regarding levy of 2 per cent additional 
customs duty as warehousing surcharge, under the Finance Act 1991 
and as amended by the Finance Act 1992, has been examined in 
consultation with the Law and Justice Division.

The 2 per cent warehousing surcharge on the second quarter of the 
warehousing period in respect of goods other than consumer goods 
under section 98 of the Customs Act, 1969, levied under Section 10 
(1) of the Finance Act, 1991, being a separate and distinct levy 
having no nexus with the surcharge levied under section 98 of the 
Customs Act, 1969 stands recoverable as pointed out by the Revenue 
Receipt and Audit Department.

The CBR letter No 3 (4) T&W/91, dated November 6, 1994, on the 
subject, therefore, stands withdrawn.

87.59% rise in net ST collection

ISLAMABAD, Oct 2: An improvement of 48.85 per cent in the gross and 
87.59 per cent in the net sales tax collection in July-September 
quarter of 1999 has been reported by the Sales Tax Department here 
on Saturday.
The ST Wing of CBR officially announced that the total gross 
collection in the same quarter last year was Rs18.066 billion while 
this year it stood at Rs26.892 billion.
The total net ST collection in July-September last year was 
Rs11.374 billion while this year the amount was Rs21.337 billion. 
Last year, the refunds paid in the quarter were Rs6.691 billion 
while this year this amount was Rs5.554 billion.
The ST registered persons at the end of September 19998 were 
42,007, while at the end of September 1999 this figures was 65,215.
The ST collection target for September 1999 was Rs7.89 billion 
while the actual collection was Rs10.36 billion (exceeded by 31.3 
per cent).
The ST collection target for the quarter was Rs20.12 billion while 
the actual collection made was Rs21.33 billion (exceeded by 6.1 per 

Investors welcome US waiver, BJP victory

KARACHI, Oct 8: News of sanction waiver given by the US Senate to 
president Clinton and BJP victory in Indian national elections 
lured investors back in the rings on the perception that they could 
lead to some positive developments in Indo-Pak relations. The KSE 
index was up 13.28 points at 1,235.84.

But leading stock analysts said the new developments are made to 
look so by a section of prominent speculators to push prices higher 
and then to take profits at the inflated levels and both may have 
no relevance to the ground situation.

They based their assessments on the negative factors including the 
Hubco issue, no clear indication from the IMF on the 4th tranche, 
the state of the economy and the possible increase in POL prices.

However, the speculative trick worked well putting the market on 
the rails at the weekend session, which generally attracts selling.

What seems to have triggered buystops from some leading foreign 
funds was the perception that both Pakistan and India will sign 
CTBT and the president Clinton will lift economic sanctions and the 
possible normalisation of sore relations between the two 

News from the Hubco front were, however, not too encouraging in the 
wake of its new demand seeking withdrawal of corruption charges 
against it before resuming talks on the tariff issue.

The KSE 1100-share index finished with a fresh modest rise of 13.28 
points at 1,235.84 as compared to 1,222.56 a day earlier as leading 
base shares ended higher under the lead of Hub-Power and PTCL, 
which together hold 43 weightage in it.

'The market perception that the government may not be able to meet 
the Hubco demand on legal grounds was interpreted as a new element 
in the long-drawn battle of nerves and the consequent heavy selling 
in its shares', said a leading broker.

But for unknown reasons, a section of leading operators continued 
to build-up long positions at the falling prices apparently on some 
'positive leak about the possible outcome of the 30-month old 
issue', he added.

The broader market, however, did not toe the general line of action 
as most of the blue chips continued to attract strong support at 
the dips, indicating that factors are behind the current 

'Investors were certainly worried over the sectarian killings, 
notably of doctors and the number game from both the sides could 
work against the sentiment if not controlled by heavy hand', 
worried stock analysts said.

They said the reported involvement of Taliban in the recent 
sectarian killing as claimed by official sources, is a serious 
development and could have a negative impact on stock trading too 
in the coming weeks.

Although the victory of BJP in the Indian elections was welcomed by 
a section of leading investors as it could lead to peace between 
the two countries, other external negative news including the local 
political polarization may not allow the consolidation forces to 
come into full play, they added.

Engro Chemical, which was quoted spot to check the current 
speculative run on it was leading among the gainers, up Rs9.20 
followed by General Tyre, Atlas Bank, Universal Insurance, Liberty 
Mills, Packages and Tri-Pack Films, rising by one rupee to Rs1.70.

Duty drawback on exports to CAS, Kabul allowed

ISLAMABAD, Oct 7: The Economic Coordination Committee of the 
Cabinet (ECC) allowed on Thursday duty drawback facility on exports 
to Afghanistan and Central Asian Republic through land routes 
provided these exports are effected against advance payment in US 
dollars or in an irrevocable Letter of Credit issued by a 
recognized bank in US dollars.

The facility will be admissible as per duty drawbacks schedule 
subject to a maximum of 7.5 per cent. The existing export facility 
against Pakistani rupees without any duty drawback facility will 
also continue.

The ECC, which was chaired by the Finance Minister Ishaq Dar here 
this afternoon, also reviewed the prices and availability of 
essential items in the country and noted that the cumulative 
percentage in SPI since July 1 uptill date is 0.68%, which is lower 
compared to the corresponding period of last two years. The 
Committee also noted that the prices of 15 to 21 kitchen items 
either declined or remained stable. The index for kitchen items 
decreased by 0.03% during the week ending on Oct 2, 1999. While 
reviewing the stocks position in the country, the meeting was 
informed that the position of wheat stock in the country was more 
than satisfactory.

The meeting was also informed that apple and onion crops during the 
current year had excellent yield which needed to be exported. It 
directed ministry of commerce to send delegations for the export of 
apples and onions as soon as possible.

Back to the top
'Round up the usual suspects'
Ardeshir Cowasjee

EACH time one of our political opposition groups schedules rallies, 
meetings, marches or strikes and the government in power is 
prompted to order mass pre-arrests I am reminded of that classic 
film 'Casablanca' released in 1943, starring the beautiful Ingrid 
Bergman, Humphrey Bogart, Claud Rains, Paul Heinried and Conrad 

In the closing scene at Casablanca airport in Vichy France, Rick, 
the cynical neutral American cafe owner (Bogart) shoots Major 
Heinrich Strasser of the Gestapo (Veidt) who is calling for help to 
stop the aircraft in which Ilsa (Bergman) and Victor (Heinreid) of 
the Free French are about to escape whilst the flip-flop police 
chief Captain Louis Renault (Rains), looks on. When a carload of 
gendarmes arrives at full pelt, Renault, the honour of Free France 
getting the better of him, calmly orders, "Major Strasser has been 
shot. Round up the usual suspects."

It is an acknowledged fact that when something here is termed 
'grand' it is anything but grand, as is the case with the present 
'Grand Alliance' formed by the riff-raff of the opposition. The 
same applies to the term 'democratic' when used by both the 
government and the opposition. The Grand Alliance is made up of 
tried, discredited and failed men, most of them corrupt, most 
toothless, one of whom has an attendant to carry his hookah, and 
another an attendant to carry the rubber ring upon which he 
enthrones himself.

When recently this weak wishy-washy lot called for a general strike 
a weak Nawaz Sharif government ordered that it be rendered 
ineffective. Police chiefs around the land barked 'Round up the 
usual suspects'. In Karachi alone around 500 were picked up and 
most were released after dark at the end of strike day.

The Americans - our mentors, masters, regulators of our oxygen 
supply, friends, enemies of Islam, or whatever - have reprimanded 
our government. Peaceful demonstrations must be allowed under a 
democratic government, says the US, not realizing that it is 
impossible for any political demo or rally in this country to be 
peaceful. The mobs gathered together, those who have little to do 
but be paid to rally and shout, are uncontrollable. The men they 
follow are incapable of preventing them from damaging public and 
private property, from arson, from violence, from shooting, 
fighting, knifing. They disrupt the already disrupted lives of our 
cities, blocking traffic, and through fear forcing business and 
trade to come to a standstill, thus further damaging the economy.

The US State Department relies in large part on its embassy and its 
men, including a CIA station chief, to keep it informed of present 
and potential happenings in a country. The 180-odd countries of the 
world are classified in different categories. We fall under the 
category of trouble-makers and defaulters, now of little strategic 
importance, a nuisance to be watched. To each category are assigned 
men who fit the categorical requirements.

The Americans seem not to realize that in this country, with the 
men of the calibre available to it, with their level of 
intelligence and integrity, there cannot be a democracy. No 
institution of the state supports its people, all work solely to 
support and maintain in power whichever man or woman happens to be 
on top.

As an illustration, let's take the case of the major bank loan 
defaulters, many members of the ruling party. They borrowed money, 
hypothecating no assets other than clout. Their aim is to remain in 
power for as long as possible so as to put off the evil day when 
they will be forced to pay back what they have robbed.

In my column of July 24 I wrote of the bank defaults of Nawaz 
confidant Saifur Rahman and his Redco group, how Saif had 
endeavoured to get the banks concerned to 'cooperate,' and how when 
they resisted he harassed their officials, going to the extent in 
the case of United Bank (UBL) of having one officer picked up by 
the FIA.

Saifur Rahman, chieftain of our accountability process, and his 
concerns have defaulted in the repayment of their loans to UBL, 
which borrowings total some Rs.1.4 billion (Rs.1b. in Pakistan, 
Rs.0.4b. abroad). UBL's recovery suit filed in 1998 is pending 
before Justice Ehsanul Haq Chaudhry, the banking judge of the 
Lahore High Court. Redco filed a counter-suit claiming damages, 
which is also pending in the LHC. Saif filed a writ petition in 
Justice Malik Qayyum's court at the LHC seeking, inter alia, that 
proceedings in the UBL suit be stayed so as to give him time to 
approach the high-powered bankers' rescheduling committee. On 
September 9, Saif filed an application (CM 1099/99) which was heard 
by Justice Qayyum. Without hearing UBL or the AG, the judge ordered 

"Notice to the respondents for 5.10.99. The learned counsel for the 
petitioner has stated that the petitioner was ready and willing to 
discharge its liability in terms of the package announced by the 
State Bank of Pakistan, but the respondents did not allow it to do 
so and have instead put the names of the applicants on the list of 
defaulters. To come up on the aforesaid date. In the meantime the 
names of the applicant/petitioner and its directors shall be 
removed from the list of creditors maintained by the State Bank of 

Until this order is reversed the defaulting party will be able to 
borrow further amounts from the government banks (no foreign bank 
will lend it anything). UBL, HBL, NBP and others will be coerced 
into giving money, further indebting the nation.

On September 30, under the heading 'Loan and tax cases,' Jang 
published a news report. Its translation :

"A division bench of the Lahore High Court presided over by Justice 
Malik Qayyum reserved judgment in the case of three units of the 
Ittefaq Group relating to incorrect assessment of tax and 
adjustment of loans . . . . . . . . Whilst addressing the nation, 
Prime Minister Nawaz Sharif had offered three units of the Ittefaq 
Group, namely Ittefaq Foundries, Brothers Steel, and Ittefaq 
Brothers to the banks and DFIs in settlement of his 
loans/liabilities of the Ittefaq Group. These units were handed 
over to the company bench of the Lahore High Court . . . . . . . . 
The court also considered the nine-year-old case of incorrect 
assessment of income tax of the Sharif family. Advocate A. K. Dogar 
representing the Sharif family argued that the income tax 
department had assessed the liability of the Ittefaq Group at Rs.2 
crores [20 million]. Benazir's first government had raised the IT 
demand to Rs.40 crores [400 million] in collusion with the IT 
department. On appeal [during the first Sharif round ?] the amount 
was reduced to Rs.2 crores. In Benazir's second round an appeal was 
filed [presumably by the IT department] after a period of three and 
a half years instead of the normal 60 days period, and the tax 
liability was again raised to Rs.65 crores [650 million]. Shafqat 
Chauhan, advocate for the IT department said that it was due to the 
pressure exerted by Prime Minister Nawaz Sharif that the case could 
not be heard. Justice Qayyum asked why, when Benazir was in power, 
did the department not proceed as at that time Nawaz Sharif was 
running from one court to another. Later the court reserved 

For whom are the institutions of the state - the courts, the IT 
department, the attorney-generals, etc - working? For the state and 
the people, or for the prime minister and the party in power? 
Naturally, the latter lot will try to remain on top as long as they 
can, not wishing to be relegated once again to the list of 'the 
usual suspects.'

Thank you, Nawaz Sharif
Ayaz Amir

AFTER the celebrations in New Delhi are over, will the Bharatiya 
Janata Party be sending a high-powered delegation to Pakistan to 
thank Prime Minister Nawaz Sharif for his enormous and perhaps 
indispensable help in ensuring the BJP's victory? If Vajpayee and 
Advani have any sense of obligation (and grace) they will do so for 
who would know better than them that the opportunities provided by 
the Pakistan prime minister have been crucial to their success.

When Vajpayee's minority government fell in April and fresh 
elections were announced, the BJP and Congress looked equally 
bedraggled and discredited. The BJP's leadership had been 
lacklustre and consequently its stock among the public not very 
high. As for the Congress, it had needlessly brought down a 
government without being able to form a new one. The Indian 
electorate was fed up. It wanted an end to the political 
instability racking the country. But to add to its frustrations, 
there was nothing very inspiring about either of the two major 
parties. All the indications therefore suggested that the elections 
would yield another hung Lok Sabha with no party or alliance 
getting an outright majority.

But just as the election campaign was getting underway there 
happened the miracle of Kargil. Forget Pakistan, it was the Indian 
election scene which was transformed. With no little help from the 
media, the Indian caretaker government led by Vajpayee whipped up a 
war hysteria. This had a unifying effect on the country and the 
beneficiary of this mood, much to the chagrin of the Congress, was 
the BJP.

But more to the point, the Kargil flare-up gave Vajpayee the 
opportunity to present himself as a responsible and mature 
statesman, handling a war situation coolly and resolutely. This was 
the difference between performing indifferently at the polls and 
winning a majority. Lest anyone forget, this difference, so vital 
to the outcome of the Indian elections, was provided by none other 
than Pakistan's great helmsman, Nawaz Sharif.

Leaders invent war situations to win elections. Remember Mrs 
Thatcher and the Falklands war in this connection. Here an 
embattled Indian leadership, unsure of its election chances, was 
being handed a 'cosy' war situation on a platter. If nothing else, 
the BJP would have appreciated our sense of timing.

Why cosy? Simply because Kargil was a venture which Pakistan could 
never win and India never lose. What the Americans would have 
called a 'no-win' situation - no-win for us, that is, not for 
India. It was our fault to think that a tactical opportunity was a 
strategic opening when patently it was not. Discomfiture for us was 
therefore written in the circumstances of this conflict. But who 
benefited from it? At one level, Vajpayee and the BJP. At another, 

While Vajpayee has his election victory, India has the diplomatic 
advantage over Pakistan in chanceries around the world. Contrast 
the newly-discovered rapport between Madeleine Albright and Jaswant 
Singh and the rough time Sartaj Aziz has had in some of his recent 
diplomatic encounters. This should provide a measure of Pakistan's 
current international standing.

Sartaj Aziz, when the definitive history of the foreign office 
comes to be written, will probably figure as the great masochist of 
Pakistani foreign policy: wearing a permanent smile on his face 
even when snubbed all the time. But it is scarcely his fault. No 
foreign minister could have had a worse brief to handle. Indeed, 
supporting the Taliban in Afghanistan did not earn us half the 
opprobrium that this summer's folly has done. Being painted as a 
rogue state, perennially indebted and not to be trusted with its 
nuclear weapons. This is the image we have managed to create for 
ourselves. All for the greater good of the BJP and India. And all 
at a time when the great helmsman was guiding the nation's 

But the people of Pakistan need not worry. None of the above has 
cramped the style of their rulers. Made of sterner stuff, they 
continue to function as if nothing had happened. Banks loans remain 
unpaid. The country's affairs may be in a mess but their industrial 
ventures continue to prosper. In the latest scam to hit the banking 
sector, the tell-tale signs of fraudulent dealings in Bankers' 
Equity Limited, the names have figured of the two families in 
Punjab whose political and economic fortunes have prospered in a 
dizzying fashion since General Zia-ul-Haq's time.

Remember the great cooperatives scandal of 1991 in which tens of 
thousands of shareholders lost all their savings? The names of the 
same two families, may their fortunes grow, figured in that as 
well. When there was a public outcry a one-man commission, headed 
by Justice Lone of the Supreme Court, was set up to investigate the 
matter and fix responsibility. Justice Lone in effect held that the 
integrity and rectitude of the two families in question were so 
much beyond dispute that they could not possibly be guilty of 
financial impropriety. Justice Lone, since retired from the Supreme 
Court, now adorns the Senate as a member of the ruling party.

This is one vital difference between India and Pakistan. Over there 
corruption at the very top - for instance, Rajiv Gandhi's 
implication in the Bofors scandal, Narasimha Rao's implication in 
the Hawala scandal - is the exception not the norm. Also, when such 
a thing does happen, there is an outcry and questions are asked. 
Here none at all. Open financial robbery has become the norm with 
no questions asked. Accountability is only for the defeated, such 
as Benazir Bhutto and Zardari, not the victors. Nor is there any 
shamefacedness in all this, the scale of the robbing being matched 
by the impudence with which it is carried out.

Imagine a defaulter of over a billion rupees approaching the courts 
and requesting that his name be removed from the list of defaulters 
so that he can contract more loans for the running of his business 
concerns. Imagine two defaulters, both in power, approaching the 
courts and asking for compensation from the banks they owe money to 
on the grounds that their defaults were 'engineered'. The amount of 
money asked for in compensation is about the same as the size of 
their defaults. This is audacity dressed in style.

If all this can be sustained, then it is not too bad. The people of 
Pakistan are used to the notion of repression and plunder. But the 
point may have come where the question is not whether the people 
can put up with highway robbery but whether the state can sustain 
any more of it.

We have the example of Russia before us which has been ruined not 
by godless communism but by the rapacity of the ruling elite. 
Russian assets have been sold bit by bit and the money spirited 
abroad. Things indeed have come to such a pass where even IMF money 
meant for shoring up the country's finances has been embezzled. It 
is some mercy that Pakistan's embezzlers have not reached that 
stage. But short of that they have left nothing to chance.

The view from the CCU
Irfan Husain

THE world looks a very different place from the confines of a 
Cardiac Care Unit: you tend to view events from a global 
perspective as intimations of mortality erode your ego and personal 
sense of invulnerability.

The excellent care meted out by the doctors and staff at the Aga 
Khan University Hospital includes an unofficial ban on the supply 
of newspapers. But for a news junkie like me, this sets off 
withdrawal symptoms, so I got my morning fix through papers from 
home. The recent sectarian butchery in three of Pakistan's four 
provinces confirmed what a number of us have been saying for years: 
you cannot export fundamentalist terrorism to neighbours without 
expecting a fallout right here in Pakistan. This rapidly rising 
tide of religious intolerance and violence is a harbinger of things 
to come.

But looking beyond our frontiers, we find that more and more, 
Pakistan and most Muslim countries are marching to the beat of a 
different drummer. While the rest of the world is largely caught up 
with material concerns, a growing number of Muslims around the 
globe are permanently preoccupied with the length of male facial 
hair, the degree of purdah women must wear, and what is and is not 
acceptable in their particular version of Islam. In this sad and 
sterile effort to define behavioural norms for the rest of us, 
these misguided but often violent individuals and groups have no 
idea of the kind of damage they are inflicting on the countries 
they live in, as well as distorting the image of Islam in the eyes 
of the rest of the world.

I know I have been addressing these issues fairly regularly in 
recent columns, but I am more and more convinced that the friction 
these elements will cause in international relations will shape 
events well into the next century. Samuel Huntington's 
controversial "Clash of Civilizations" aggregated the various power 
groupings and discussed the possibilities of conflict between them. 
According to Huntington, the Islamic bloc would be a major threat 
to the West, given the long history of confrontation between them.

Much of this thesis has been criticized and debunked. Indeed, the 
motley collection of Muslim countries scarcely present a threat to 
anybody but themselves. However, it is the armed and dangerous 
militant groups that have mushroomed around the world that threaten 
not just the stability of their host countries, but of the regions 
around them. The close links between these groups and the financing 
they manage to tap into have raised their profile and present them 
as a bigger danger than they now are.

But as the on-going killings in Pakistan demonstrate, these people 
are utterly ruthless in carrying out their agenda. Their anti-
western activities may not amount to more than a few pinpricks, but 
they are nevertheless seen as a real threat. For a whole generation 
of these jehadis, the Afghan war against the Soviets was not only a 
proving ground, but it also forged links and alliances that are 
still intact 15 years after the invaders were driven out of Kabul. 
These fighters are now training another generation from Afghanistan 
to Kashmir to Chechnya.

In a sense, these zealots are nihilists, destroying what they see, 
insisting that they have to build their version of an Islamic 
utopia on the rubble of the erring societies they inhabit. With no 
stake in the system, they are aspiring to become ruthless killing 
machines that will sweep aside the corrupt, westernised elements 
that they see ruling much of the Muslim world. And if they fall, 
they will find their reward in the next world.

It is obvious that it is impossible to engage these people in any 
kind of meaningful dialogue. Convinced of the righteousness of 
their path, they will brook no argument and accept no legal limits 
to their actions. For them, democracy is only a system to be 
manipulated to achieve power as they certainly do not accept the 
prerequisites of democracy like tolerance and fair play. Although 
only a handful in most Muslim countries, these extremists have an 
influence on shaping the national agenda that is out of all 
proportion to their numbers.

Countries like Egypt, Syria and Iraq saw the threat posed by groups 
like the Islamic Brotherhood long ago, and cracked down on them 
viciously even when they did not pose much of a threat. But in 
Pakistan, a confused polity based on a yearning for democracy 
encouraged any and every charlatan with a vision to sell to set up 
a political party. Sooner or later, he received covert funding from 
one of our intelligence agencies or a foreign power. The Afghan war 
was a windfall as he not only got arms, but also acquired the stamp 
of respectability. As a bonus, many of his followers received 
advanced training in guerilla warfare, courtesy the CIA and the 

Understandably, these politicians and their followers now do not 
want to go into a quiet retirement. On the contrary, the younger 
elements are more radicalized than their elders, and less ready to 
compromise. It is these holy warriors who are ready to take on the 
world on battlefields ranging from cyberspace to Daghestan. While 
disagreeing with their aims and methods, it would be a mistake to 
underestimate their motivation and their resources. Many of them 
are highly educated and have no problem with using modern 
techniques and tools to further their ends.

It is this breed of the modern Muslim fanatics that is seen as a 
danger both in the world he comes from and in the West. Indeed, the 
campuses of America have become hotbeds of revolutionary Muslim 
fervour. The Internet has given these elements a method of instant 
communication that is difficult to monitor, and zealous businessmen 
are glad to contribute to the cause. Arms, in this region at least, 
are no problem. The religious schools or madressas these 
organizations run provide a steady supply of volunteers. We have 
here all the makings of a frighteningly effective and organized 
armed force.

Unfortunately, no past or present Pakistani government has shown 
the least interest in taking on these militias. As the worst of 
them are currently targeting Shias whom they view as non-Muslims, 
the government probably feels it has some breathing space. But the 
truth is that despite the Punjab chief minister's recent charge 
that the Taliban were behind the current spate of killings (and 
since confirmed by the prime minister), this government can ill-
afford to take on these fanatics.

The view from the West is one of increasingly violent Islamic 
countries. While more sophisticated westerners might make a 
distinction between mainstream Muslims and the fanatic fringe, most 
people will tend to lump us all together because that is human 
nature. How we interact with the rest of the world under these 
trying conditions will be determined by a number of factors. As for 
myself, I am reminded of Sinbad and the Old Man who gripped the 
sailor around the neck with his legs and would not let go.

Jansher seeks wild card entry in Pakistan Open

KARACHI Oct 4: Record eight-time World Open champion Jansher Khan, 
who has been relegated to 130 in the September PSA rankings, here 
on Monday said if he gets a wild card entry for the next month s 
Pakistan Open in Karachi he would certainly compete. 

Talking to mediamen here at the PIA Squash Complex, former Pakistan 
Open champion Jansher Khan stated that hosts Pakistan Squash 
Federation can ask for a wild card entry from the Professional 
Squash Association (PSA ) for him for the Pakistan Open which will 
be carrying a prize of $35,000, besides $10,000 as hotel bonus. 

I would not play in the qualifying round of the Pakistan Open as 
the championship is to be organized in our own country, he 

Let the PSA approach the PSA for a wild card entry, the former 
champion stated. 

Replying to another question, ex-champion Jansher Khan said he 
intends to take part in the 16-man draw of the $50,000 USA Open in 
Boston from Nov 29 but he has to get a wild card entry even for a 
qualifying round as he is currently ranked 130 in the world.

Afridi and Akram recalled for Sharjah tour

KARACHI, Oct 7: The Pakistan cricket selectors left out Saqlain 
Mushtaq and Shoaib Akhtar on fitness grounds but recalled Shahid 
Afridi and Mohammad Akram for the three-nation Sharjah tournament 
starting Oct 13.

The two players were left out on fitness grounds as Saqlain 
underwent a knee surgery in England and Shoaib is recovering from a 
shoulder injury.

The selectors unanimously decided to put off the announcement of 
the team for the Australian tour until Oct 17. The team will now be 
named in Sharjah after the completion of the first round matches of 
the double-league tournament to be played between Oct 13 and 23 and 
to be participated by the West Indies and Sri Lanka.

"After the first round matches, we will be in a better position to 
know about the requirements and fitness of the players," chief 
selector Col (retd) Naushad Ali said here on Thursday.

He said Saqlain and Shoaib have been given more time to regain 
complete fitness for the Australian tour "which was far more 
important and demanding," Naushad said.

Saqlain was operated upon late last month while Shoaib travelled to 
Toronto for the three-match series against the West Indies but 
returned without playing after the injury aggravated.

"The injury to the two players is not very serious. But we don't 
want to take the risk of making them out of commission from the 
Australian tour by playing them in Sharjah," he remarked.

The absence of the two players proved to be a blessing in disguise 
for Shahid Afridi and Mohammad Akram who have been recalled for the 
desert tour.

The 16-man squad is:

Wasim Akram (captain), Moin Khan (vice-captain), Saeed Anwar, 
Wajahatullah Wasti, Inzamam-ul-Haq, Yousuf Youhana, Hasan Raza, 
Azhar Mahmood, Abdur Razzak, Arshad Khan, Shabbir Ahmad, Shahid 
Afridi, Mohammad Akram, Aamir Sohail, Shoaib Malik and Waqar 

Sialkot to host 2001 Champions Trophy

LAHORE, Oct 7: President of the Pakistan Hockey Federation (PHF) 
Chaudhry Akhtar Rasool has said Sialkot will host the 2001 
Champions Trophy hockey.

Akhtar Rasool said that the federal government has already given 
approval for laying astroturf at Sialkot and funds have also been 
earmarked for this purpose.

He said that a hockey stadium of international standard will be 
constructed at Sialkot by the year 2001 where champions Trophy 
tournament will be held and Sialkot Chambers of Commerce and 
Industry will bear all expenses of the tournament, he was presiding 
over a meeting at Sialkot Chambers of Commerce and Industry on 

The PHF President said that he wanted to make Sialkot a unique 
centre of hockey as this city has produced a number of hockey 
players of national level.

He also accepted the demand of the members of Chamber for the 
construction of a multi-purpose sports complex at Sialkot and 
directed the Deputy Commissioner Sialkot to select a suitable site 
for this purpose with the consultation of District Sports Committee 
and sports organisations.

Akhtar Rasool, who is also the chairman of the Punjab Sports Board, 
said the board will bear all expenses for the construction of the 
sport complex where facilities for all indoor games will be 

Shahid Zaman clinches U-19 Roshan Khan squash title
A. Majid Khan

KARACHI, Oct 6: Top seeded Shahid Zaman added another feather to 
his cap when he turned ruthless in handling Farrukh Zaman 15-7, 15-
9, 15-11 to win the Under-19 title of the Roshan Khan National 
Junior Squash Championship here on Wednesday at the PIA Jahangir 
Khan Squash Complex.

The Under-16 title was annexed by unseeded Safeer Khan of the Bank 
of Khyber, who gave another remarkable performance when he recorded 
an impressive 15-8, 15-11, 15-8 victory over second seed Waseem 
Shad from Peshawar. On Tuesday talented Safeer had surprised top 
seeded Saeed Hasan (Lahore) in the semifinal.

Lahore's second seed Shahnawaz put up a commendable performance to 
become under-14 champion when he recovered from 1-2 game down to 
inflict a 17-14, 3-15, 6-15, 15-6, 15-13 defeat on Peshawar's top 
seeded Khalid Atlas to win the closely fought 51-minute final.

Chief guest Roshan Khan, a former British Open champion, gave away 
the cups and the cash prizes of the championship which carried a 
total cash prize of Rs 1,10,000. The under-19 winner and runnerup 
got Rs 10,000/- and Rs 7000/- each respectively. The under-16 
champion received Rs 8000/- and runnerup Rs 5,600/- while the 
winner and runnerup of under-14 event got Rs 4000/- and Rs 2800/- 

The Pakistan Squash Federation gave Rs 1,30,000 to the Sindh Squash 
Association for organising the Championship. The entry fee was 

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