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DAWN WIRE SERVICE
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Week Ending : 10 July 1999 Issue : 05/28
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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
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
We encourage comments & suggestions. We can be reached at:
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fax +92(21) 568-3188 & 568-3801
mail DAWN Group of Newspapers
Haroon House, Karachi 74200, Pakistan
Please send all Editorials and Letters to the Editor at
letters@dawn.com
(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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NATIONAL NEWS
+ Mujahideen urged to withdraw from Kargil
+ Nawaz, Clinton agree on pullout by Mujahideen
+ Dawn Group CE criticizes ban on website
+ Sindh-Wapda arbitration: Contradictions in statements observed
+ Muttahida may be banned: senator
+ Diplomats allowed to open special FCY account
+ Mujahideen reject withdrawal proposal
+ Delhi says Islamabad stance not acceptable
+ Senate seat contest: PM assures Hillary of Pakistanis' support
+ Non-residents yet to benefit from SC ruling
+ US involvement essential: PM
+ Blair terms Washington talks real progress
+ Diplomat's abduction: FO probing charges
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BUSINESS & ECONOMY
+ Trade deficit expands by 5.3 per cent
+ Target for farm income tax: NWFP ignores Centre's directive
+ CBR abolishes CVT charge on import of vehicles
+ S&P affirms Pakistan Eurobond rating
+ SBP calls bankers' meeting to discuss prize schemes
+ Gold price
+ PM's transport scheme: Rules for exemption of duty notified
+ Govt has authority to regulate kerb market
+ Pakistan bond firmer on debt accord
+ Habib Bank raises banking charges
+ Stocks fall across a broad front amid heavy selling
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EDITORIALS & FEATURES
+ Zero minus fifty-two By Ardeshir Cowasjee
+ Victory in reverse: the great climbdown By Ayaz Amir
+ The end of morality By Irfan Husain
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S P O R T S
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+ World Cup: PCB requests Commission to probe into allegations
+ PCB office virtually non-existent in chairman's absence
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NATIONAL NEWS
990710
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Mujahideen urged to withdraw from Kargil
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By Ihtasham ul Haque
ISLAMABAD, July 9: The Pakistan government on Friday formally
appealed to the Mujahideen to de-escalate the situation by
withdrawing from the Kargil sector.
Prime Minister Nawaz Sharif met 11 Mujahideen leaders immediately
after the Defence Committee of the Cabinet (DCC) meeting and
requested them to pull back. "Yes, 11 leaders of the freedom
fighters held an important meeting with the prime minister in which
they were requested to withdraw from Kargil," said the Minister for
Religious Affairs and the Leader of the House in the Senate, Raja
Zafarul Haq.
Asked about the response of the Mujahideen, Zafar told Dawn that
the prime minister had sought the Mujahideen leaders' support for
reducing the heightening tension in the region.
"But there is no timeframe as such which was discussed," the
minister said while hoping that the Mujahideen would withdraw as
quickly as possible.
However, Raja Zafarul Haq said that the DCC decided to continue to
offer all kinds of diplomatic, moral and political support to the
freedom fighters to achieve independence from India.
The DCC saluted the martyrs who had made the supreme sacrifice for
the defence of their sacred cause and the honour of the country.
The DCC also paid tributes to the armed forces of Pakistan for
their courage and determination to defend the independence and the
territorial integrity of the country and to meet and challenge any
aggression against the motherland.
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990705
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Nawaz, Clinton agree on pullout by Mujahideen
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WASHINGTON, July 4: President Bill Clinton and Prime Minister Nawaz
Sharif reached an agreement on Sunday under which the freedom
fighters who crossed into certain parts of occupied Kashmir would
withdraw, US officials said.
"It was agreed between the president and the prime minister that
concrete steps will be taken for the restoration of the Line of
Control," Clinton and Sharif said in a joint statement after three
hours of talks.
"The president urged an immediate cessation of the hostilities once
these steps are taken," it added after the discussions.
The officials said the joint statement meant the Kashmiri fighters
would withdraw to the Pakistani side of the LoC.
"Our understanding is that there will be withdrawal of the forces
now," a senior official told reporters. He declined to say exactly
when the forces would pull out but added: "We would like to see
positive steps in the very near future."
In their statement, Mr Clinton and Mr Sharif said they shared the
view that the recent conflict was "dangerous and contains the seeds
of a wider conflict."
"They also agreed that it was vital for the peace of South Asia
that the Line of Control in Kashmir be respected by both parties in
accordance with their 1972 Simla Accord," it added.
The statement finessed another issue - India's long- standing
rejection of any outside mediation over Kashmir and Washington's
resulting reluctance to play such a role, even though Mr Clinton
had intervened with Pakistan in this instance.
The White House said Mr Clinton had spoken to Indian Prime Minister
Atal Behari Vajpayee for about 10 minutes on Sunday to brief him on
the talks.
The statement said Mr Clinton stressed that the best way for the
two countries to settle their differences, including Kashmir, was
to continue the direct talks that began when their prime ministers
met in Lahore in February.
"The president said he would take a personal interest in
encouraging an expeditious resumption and intensification of those
bilateral efforts once the sanctity of the Line of Control has been
fully restored," the statement said.
It also said Mr Clinton, who cancelled plans to visit India and
Pakistan last year after they conducted their nuclear tests,
intended to "pay an early visit to South Asia."-Reuters
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990710
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Dawn Group CE criticizes ban on website
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KARACHI, July 9: The chief executive of the Dawn Group of
Newspapers, Hameed Haroon, in a statement issued here on Friday
said the authorities' decision to block the Dawn website had
done great discredit to India's democratic credentials.
He said although the question of whether Videsh Sanchar Nigam
Limited (VSNL), which controlled the communication gateways, had
taken the decision on its own initiative or on the instructions of
the government of India remained, the impression was growing with
each passing day that this action had been taken with the tacit
agreement of the Indian government.
"Dawn is one of the most respected newspapers in South Asia," Mr
Haroon said, pointing out that the paper had earned this respect
because of its "credibility and its balanced response to the crises
that periodically affect this volatile region." That was why Dawn
had an influential readership in India "consisting of policy-
makers, think-tanks, diplomats, journalists and academics, all of
whom read Dawn to gain an insight into the perceptions of the more
moderate and influential elements of Pakistani public opinion." He
maintained that failure to understand these perceptions could only
lead to further misunderstanding between the two nations.
Mr Haroon said so far, in the interest of bilateralism, Dawn had
shown considerable restraint. "To date we have confined our
protests to the Indian press and the government of India. We have
refrained from taking the matter up with international press and
human rights organisations. We have done so despite the fact that
by blocking our website the Indian government has not only breached
the code of conduct governing the freedom of the press but has also
violated its own constitution. I appeal to the prime minister of
India to respond to our moderation by adopting a sensible approach,
which is to unblock the Dawn without further delay.
"In the meantime, on behalf of the Dawn Group of Newspapers, I
express my utmost appreciation to all those individuals and
organisations in India, particularly those in the press who,
without hesitation, have condemned the blocking of our website and
have given us the facility to mirror our website on theirs, in the
interest of safeguarding the free flow of information," he
concluded.
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990710
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Sindh-Wapda arbitration: Contradictions in statements observed
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By Our Staff Reporter
KARACHI, July 9: Glaring contradictions are being observed in the
evidence being given by the witnesses produced by the Water and
Power Development Authority (Wapda) in the arbitration proceedings
in its dispute with Sindh government.
Retired Justice Shafiur Rehman is conducting the arbitration
proceedings in Islamabad on the first three working days of every
week and Wapda has so far produced four witnesses.
Two witnesses, Minhajul Hasan Syed and Choudhry Mohammad Akram, who
were the chairmen of the Wapda Hyderabad Area Board during 1995 to
1998 in their evidence before the arbitrator maintained that the
quantity of the pilfered electric power was not being included in
the electric bills given to Sindh government offices, institutions
and departments.
However two other witnesses who gave evidence immediately after
them -Tanvir Siddiqui and Shamsul Hasan Sheikh who are senior
engineers of Wapda in Nawabshah circle deposed that the entire
quantity of electricity being consumed, legally or illegally was
being billed to Sindh government.
Shamsul Hasan in his evidence said that Wapda was billing area
police stations under its jurisdiction for both legal and illegal
connections.
Wapda witnesses have so far failed to inform the arbitrator of the
number of units being consumed by the government and the private
consumers in their respective area of jurisdiction.
The arbitrator is reported to have called for a report prepared by
the Wapda auditors according to which the authority in 1997-98
over-billed Sindh government by 239.45 million units in Sukkur
division only.
At Rs 6 per unit, the Sindh officials estimate that the provincial
government paid an excess amount of Rs 1.44 billion from Sukkur
division only during 1997-98.
Sindh government's demanding a refund of Rs 5 billion alleged to
have been over billed by the Wapda and recovered at source
deduction by the federal government from the monthly share
instalment from divisible pool of the provincial government. The
Wapda is demanding a sum of Rs 8 billion from Sindh government.
Both Wapda and Sindh government are involved in this dispute for
the last six years and since then a number of meetings were held
for the formation of working groups, task forces, expert groups and
eventually Justice Shafiur Rehman was appointed as the arbitrator.
The arbitration proceedings will resume again next Monday at
Islamabad in which the Wapda will produce its fifth witness.
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990710
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Muttahida may be banned: senator
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KARACHI, July 9: The government was giving the Muttahida Qaumi
Movement a chance to change its attitude otherwise the Constitution
authorized the government to take the issue to a court of law and
get the party banned for its "involvement in terrorism," the Prime
Minister's Chief Coordinator for Political Affairs, Senator Raja
Aurangzeb, told NNI on Friday.
He said Muslim League believed in democracy and had tried to solve
all the matters through political means. He said the Muttahida had
been coalition partner of Muslim League for two years in Sindh and
were given ministries "according to their will," but the law and
order situation in the province, specially in Karachi, failed to
improve.
He alleged Shoaib Bukhari and Farooq Sattar were responsible
besides Liaquat Jatoi for the failure to maintain peace in Karachi.
He recalled that Muslim League dismissed its own government in
Sindh and established military courts which produced "positive
results," but the Supreme Court abolished these and "we accepted
the decision wholeheartedly," he added.
He said special courts had been set up on the advice of the Supreme
Court and their utility was yet to be witnessed. Talking about
governor's rule, he said it was imposed in order to maintain law
and order in Sindh, but the former governor, Moinuddin Haider,
could not fulfil the required targets and he was not a political
personality.
"In the reign of the former governor, Muslim League workers were
neglected", he said.-NNI
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990709
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Diplomats allowed to open special FCY account
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By Mohiuddin Aazim
KARACHI, July 8: The State Bank on Thursday allowed diplomatic
missions and international organizations in Pakistan to open
special foreign currency accounts for remitting foreign currency
abroad.
On July 5 SBP had barred diplomatic missions and international
organizations in Pakistan from opening their foreign currency
accounts. It had asked them to use a convertible rupee account for
the time being. The SBP offered no reason for the reversal of the
decision within three days but government sources said the earlier
decision had drawn spontaneous appeals of withdrawals.
"It has been decided that the diplomatic missions accredited to
Pakistan...as also all international organizations in Pakistan
...may be allowed by the authorized dealers (banks) to open foreign
currency accounts...for the purpose of receiving funds from
abroad," says an SBP circular (F.E. no 19). It says officers and
home-based members of the staff of diplomatic missions and
expatriate employees of international organizations in Pakistan
would also be entitled to this facility.
The circular says these accounts may be outside the scope of fresh
foreign currency accounts scheme that was introduced in June last
year after Pakistan had frozen $11 billion existing accounts in
May. The accounts held by diplomatic missions and international
organizations in Pakistan were exempted from the freeze.
The circular further says that the special foreign currency
accounts "may be used for remittances abroad through normal banking
channels." It says these accounts may also be used for "issuance of
foreign currency denominated travellers cheques and for payment in
a duty free shop in Pakistan." The foreigners maintaining these
accounts would be able to withdraw money from their accounts "in
the shape of foreign currency notes only for the purpose of travel
abroad." The maximum limit for this purpose would be $5000 (or
equivalent in other currencies) per person per visit.
The circular says conversion off amounts from special foreign
currency accounts would be done "only through the inter-bank market
and the rupee amounts so converted may be credited to a
(convertible) rupee account as mentioned in F.E. circular no 18."
It says the banks would not be bound to surrender to the State Bank
"the receipts into these accounts" and they would be free "to
retain such balances in their Nostro accounts in addition to their
trading Nostro limits." However, the banks would have to report the
balances in the special foreign currency accounts to the SBP.
Senior bankers told Dawn that the decision to allow opening of
special foreign currency accounts to the foreigners would have very
little-or almost no impact on the inter-bank market.
They said the reason why the SBP had allowed opening of these
accounts separate from fresh foreign currency accounts was that the
SBP had stopped the banks on June 3 from placing abroad foreign
currency funds out of these accounts.
Instead the banks were asked to place such funds with the SBP if
they so desired.
Senior bankers said with diplomatic missions and international
organizations allowed to open special foreign currency accounts
banks would be able to employ abroad foreign currency funds out of
these accounts. "That would add a little to our profitability in
terms of the spread we would earn on such placements," said a
foreign banker.
"But the inter-bank market would see no change," he said. The SBP
through a set of measures announced lately has restricted the banks
ability to use surplus foreign currency funds in the inter -bank
market without involving back-up commercial transactions.
That is why the opening of special foreign currency accounts is not
being seen by the bankers as anything able to change the demand and
supply of foreign currency in the inter-bank market.
The US dollar closed at Rs 51.45-51.55 in inter-bank market and at
Rs 53.65-53.85 in open market for buying and selling on Thursday.
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990709
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Mujahideen reject withdrawal proposal
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SRINAGAR (Occupied Kashmir), July 8: The Mujahideen on Thursday
slammed the Nawaz-Clinton agreement over withdrawal from occupied
Kashmir and threatened US citizens and diplomats travelling in the
region.
"We reject all agreements reached between India and Pakistan, or
Pakistan and any other country," said Syed Ali Shah Geelani,
chairman of the All-Party Hurriyat Conference.
"Kashmiris are the main part of the dispute. Until they are taken
into confidence, all agreements are null and void," Geelani said.
One of the groups involved in the current fighting said it had no
intention of withdrawing.
"We don't recognize either Clinton or Nawaz Sharif. We decide on
our own," the Harkat ul-Mujahideen said in a Press release.
"We do not fight on the behest of any country or ruler. We fight in
the name of Allah."
The organization also said it was imposing a "ban on American
citizens as well as diplomats" coming to held Kashmir.
"If they violate our orders, then strict action will be taken
against them," the group said.-AFP
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990708
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Delhi says Islamabad stance not acceptable
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NEW DELHI, July 7: India said on Wednesday the withdrawal of
"infiltrators" should not be made conditional on progress in
resolving the Kashmir dispute.
"We reject this linkage completely. The people on our side of the
Line of Control are essentially Pakistani regulars. This statement
is a misleading one," Raminder Singh Jassal, spokesman for India's
foreign ministry, told reporters, referring to a statement earlier
on Wednesday by Foreign Minister Sartaj Aziz.
"There is nothing before us at the moment other than the complete
and unconditional withdrawal of 'intruders' from our side of the
Line of Control," Jassal said in New Delhi.
"We would like to see evidence on the ground. There is still
resistance going on. There is still reinforcement going on. In
these circumstances, it is difficult to accept any statement about
withdrawal or appeals for withdrawal."
srinagar airport: India has closed the airport in occupied Srinagar
to UN flights used to transport men and materiel to a UN mission
monitoring the LoC, UN officials said on Wednesday.
The airport has been closed to international traffic since May.
But Indian authorities, citing sovereignty reasons, are also
barring a regular UN-chartered flight from Pakistan from landing at
the airport unless the aircraft first goes to New Delhi to clear
customs and immigration.
The move was reported by the New York Times on Wednesday.
UN officials said Joachim Hutter, director of the UN peacekeeping
department's Asia and Middle East division, had been conducting
negotiations with Indian authorities and it appeared that an
agreement was close.
"They'll throw up their hands and give in," said one diplomat.-
Reuters/ AFP
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990708
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Senate seat contest: PM assures Hillary of Pakistanis' support
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By Our Staff Correspondent
WASHINGTON, July 7: Prime Minister Nawaz Sharif has assured First
Lady Hillary Clinton that the Pakistani community in America will
fully support her if she decides to run for the Senate from New
York.
The assurance was given to her when Mr Sharif and wife Kulsoom,
along with their daughter, paid a courtesy farewell call on the
Clintons at the White House early Monday morning.
Pakistani sources said Mr Sharif fully backed the idea that should
Hillary Clinton contest the Senate seat, the wealthy and
influential Pakistani-Americans in the US would give her full
financial, political and moral support.
Any foreign government money into election funds of any candidate
is illegal in the US but what Mr Sharif can do is to persuade the
Pakistani-Americans to donate generoulsy towards Hillary's election
fund.
The Pakistani community has increasingly become an important player
in Senate races and at least two crucial decisions were the otcome
of the support and money of Pakistani-Americans in recent years.
The first was the defeat of infamous Larry Pressler from South
Dakota who lost because his rival Tim Johnson was backed by the
Pakistani community. Recently a New York Congressman Chuck Schumer
upset a Republican icon, Alfonse D'Amato, for the Senate seat,
again with the active help of the Pakistani community.
Several Pakistanis are among the major donors to the Democratic
Party and most of them have promised to raise as much money as they
can for Hillary Clinton, should she decide to contest.
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990708
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Non-residents yet to benefit from SC ruling
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By Mohiuddin Aazim
KARACHI, July 7: Non-resident foreign currency account holders are
pressing their bankers in Pakistan to pay in foreign currency the
interest on their frozen foreign currency deposits (FCDs) as
directed by the Supreme Court last month.
"But banks are in problem," said a local bank treasurer adding that
most banks had no foreign currency funds to pay the interest on
FCDs in foreign currency.
He said the State Bank had made it clear that it would not provide
foreign exchange to the banks for this purpose. "The SBP officials
say it is the responsibility of the banks," the banker said making
it clear that this was rather an unofficial stance of the State
Bank. He said officially there was no word from the SBP on this
subject. SBP officials could not be reached immediately for their
comments.
Senior bankers say the Supreme Court order that non-residents be
paid interest in foreign currency on frozen foreign currency
accounts has so far not been implemented by majority of banks for
the want of foreign currency funds.
They say the recent curbs on inter-bank foreign currency
transactions and the restriction on foreign currency dealings by
the banks in kerb market has left banks unable to arrange foreign
exchange to implement the order.
"But the problem is that are non-resident account holders are now
pressing us to do it," said treasurer of a state-run bank.
He said the most problematic are foreign currency term deposits
held by non-resident Pakistanis and foreigners because banks did
not find it easy to deny any interest at all on these deposits.
Banks had zeroed interest on frozen foreign currency deposits in
saving and current accounts after the SBP raised forward cover fee
to 10 per cent on dollar deposits in March this year.
Bankers say the increase in forward cover raised the cost of these
deposits to the level where they became non-productive for the
banks. But in case of term deposits some banks particularly local
private and state-run banks-remained committed to paying some
return in the local currency. Now that the Supreme Court has asked
the banks to pay the return in foreign currency these banks are in
a fix.
On the one hand they say they do not want to deny any return on
term deposits as some foreign banks have done and on the other hand
they say they cannot do it unless the State Bank provides foreign
exchange for this purpose.
Bankers close to SBP say since the banks had not obtained any
forward cover on the interest accruing on frozen foreign currency
accounts SBP is not bound to do this.
The result of all this is that the non-resident Pakistanis and
foreigners whose foreign currency accounts were frozen last year
are still waiting to get the return in foreign currency on their
frozen accounts.
Some bankers even fear of a renewed legal battle between the banks
and these clients but they are not sure whether these fears would
prompt the banks to start paying interest in foreign currency on
frozen foreign currency accounts.
"Senior treasury managers of local and foreign banks have met a
couple of times to discuss this issue but nothing has emerged out
of these discussions," said a foreign treasurer.
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990707
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US involvement essential: PM
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By Our Correspondent
NEW YORK, July 6: Prime Minister Nawaz Sharif said here on Monday
that President Clinton had assured him that he would take personal
interest in helping to resolve the Kashmir dispute.
Talking to Dawn, Mr Sharif said Mr Clinton had told him that in the
next 18 months of his term he would work resolutely to find a
solution to the festering dispute which threatens peace in the
region.
The prime minister who reaffirmed the statement at a meeting of PML
workers in New York before his departure for London, declared that
whether India liked it or not the Kashmir dispute had been
internationalized. "The American involvement was essential," he
remarked. He referred to the resolution of the Kosovo conflict and
the Middle East peace process in which the US had played a crucial
role.
Describing his meeting with President Clinton as "very successful",
he said: "We hope that America will play its role to bring about a
settlement of the Kashmir issue."
Mr Sharif's remarks as well as those of the foreign office
officials accompanying him were in contrast to reports in the
American media about the hastily arranged visit and its outcome.
The New York Times in its report on Monday said the US officials
were "baffled as to why Mr Sharif had asked for a rush appointment
with Mr Clinton." It said Mr Sharif's desire to come to Washington
was probably driven in large part to get political cover from Mr
Clinton for the hard job of persuading his 'military' to withdraw."
Questioning the extent of Mr Sharif's clout with the Mujahideen,
the Times said: "Pakistani government's insistence that it does not
control the fighters will make it politically difficult for Mr
Sharif to live up to the pledge that he appeared to have made to
the (Clinton) administration..."
Responding to these and other reports in the media, the foreign
office officials insisted that the conclusions of the American
media were misplaced. "There is a negative perception being created
here which is contrary to the facts as we understand our position
has been vindicated."
Meanwhile, Foreign Secretary Shamshad Ahmed told Dawn that only
President Clinton and Prime Minister Nawaz Sharif knew about the
unscheduled July 4th meeting. Even the closest confidants of Mr
Sharif were not aware of such a meeting until the last minute.
This was later confirmed by Mr Sharif himself while talking to Dawn
briefly at the Sony Centre. He dismissed claims by many well-
connected Pakistani-Americans here who have been making claims
about having been instrumental in arranging the meeting. Mr Sharif
declared: "No one had any idea. Only Mr Clinton and I knew about
it."
He said one of the reasons for the haste in coming to the US was
his fear that India was getting ready to launch a full-scale
military operation against Pakistan.
The prime minister said: "You see President Clinton and I had been
in constant touch over the situation in Kargil and we exchanged
ideas and at one point I suggested that I could come to Washington
to talk to him about new ideas to defuse the situation."
He said Mr Clinton told him: "I think it's a good idea. Let me call
you back in fifteen minutes to confirm this."
Suggesting that perhaps President Clinton had to alter his July 4th
appointments and consult senior aides, Mr Sharif said: "Sure enough
he called me back in fifteen minutes asking me to come to
Washington immediately.'
"After this conversation I informed my cabinet ministers and
foreign office officials and fortunately a PIA flight was leaving
for New York from Islamabad late that night. So we hurriedly took
it."
MEETING BLAIR: Mr Sharif who left New York on Monday night for
London may meet with his British counterpart Tony Blair, during his
24-hour stay, informed sources told Dawn.
They said Mr Sharif had requested a meeting with the British
premier, but any such meeting was not confirmed till late night.
A foreign office official responded when asked whether such a
meeting would take place, saying: "Anything is possible."
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990707
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Blair terms Washington talks real progress
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By Our Staff Correspondent
LONDON, July 6: Prime Minister Tony Blair has termed the joint
statement issued after the meeting of Prime Minister Nawaz Sharif
and President Bill Clinton as a "real progress" in reducing tension
between India and Pakistan.
A spokesman of 10-Downing Street told Dawn at the conclusion of
Prime Minister Nawaz Sharif's 30-minute meeting with Prime Minister
Tony Blair this evening that the two prime ministers discussed
continuing conflict in Kashmir and situation in the South Asian
region.
The two, he said, were of the opinion that the a quick beginning
should be made in the actions proposed in the joint statement.
The joint statement, it may be added, had called for resumption of
a dialogue between India and Pakistan to resolve all outstanding
issues including Kashmir.
"The Prime Minister (Blair) looks forward to resumption of dialogue
initiated by Prime Minister Nawaz Sharif and Prime Minister Atal
Bihair Vajpayee in Lahore," he said. "This stands a best hope in
resolving the issue."
Pakistani officials said that Mr Sharif briefed Mr Blair on the
Kashmir situation as well as the efforts of the Pakistan to avert a
war with India.
He also briefed him about his talks with President Bill Clinton on
the situation in Kargil and asserted that the international
community should play its role to influence India to resume talks
for resolving all issues, including Kashmir.
Sources close to Prime Minister Nawaz Sharif said that he informed
his British counterpart that the freedom struggle in Kashmir was
indigenous and that Pakistan had no control over the Kashmiri
freedom-fighters who are fighting for their liberation.
He said if the international community could assure the resolution
of the issue, then Kashmiris could be appealed to resolve the
Kargil issue, the source said.
"We had a very useful meeting for half-an-hour during which both
prime ministers discussed all aspects of the Kashmir situation,"
Pakistan Foreign Minister Sartaj Aziz told reporters after the
meeting.
"He (Mr Blair) also endorsed Lahore declaration because that's the
right route for resolving all outstanding issues, including
Kashmir, through a dialogue," Mr Sartaj said.
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990706
-------------------------------------------------------------------
Diplomat's abduction: FO probing charges
-------------------------------------------------------------------
ISLAMABAD, July 5: Pakistan on Monday said it was investigating the
accusations of the Indian High Commission that one of its staff
members was allegedly abducted and beaten by some persons in
Islamabad.
"We have received protest note by the Indian HC and investigating
into the allegations," acting Foreign office spokesman Zameer Akram
said.
The Indian HC in a statement said Yog Raj Vuj, staff member of the
mission, was abducted in a pre-planned manner by 10-12 persons
outside his house as soon as he got down from the staff car on his
return from office.
It alleged that T.R. Nair, another staff member, who tried to
resist the abduction, was also attacked and beaten up, with sticks.
An FIR has been registered with the Aabpara police station, it
added.
A staff member of the Pakistani HC in New Delhi, Dil Fayyaz, was
abducted and injured by the Indian intelligence agencies last
month. He was later expelled from New Delhi on charges of spying.
The charges were rejected by Pakistan.
An Indian HC statement said: "The government of Pakistan has been
reminded of its obligations for the safety and security of the High
Commission in accordance with its responsibility to do so under the
Vienna Convention."-NNI
===================================================================
BUSINESS & ECONOMY
990710
-------------------------------------------------------------------
Trade deficit expands by 5.3 per cent
-------------------------------------------------------------------
By Our Correspondent
ISLAMABAD, July 9: The trade gap during the financial year 1998-99
at US$ 1.5 billion expanded by 5.3 percent over 1997-98 as
imports amounting to US$ 9.287 billion outstripped the exports
earnings valued at US$ 7.718 billion.
The 1997-98 trade deficit was US$ 1.49 billion, while the trade
deficit in 1998-99 was US$ 1.569 billion. The Ministry of Commerce,
External Trade Wing has computed final figures on the balance of
trade for 1998-99, which reveal that the value of both exports and
imports plummeted in 1998-99 as against 1997-98.
As per the Trade Policy 1998, the federal government had set itself
a target of bringing down the trade deficit in 1998-99 to zero.
This target has not been achieved, the ETW report indicates.
Exports from Pakistan in financial year 1998-99 at US$ 7.718
billion was 10.5 percent less than what Pakistan earned in 1997-
98 at US$ 8.628 billion, while imports in 98-99 at US$ 9.827
billion declined by 8.2 percent against the import bill for the
previous financial year which was US$ 10.118 billion.
In rupee term, the exports in 1997-98 valued at Rs 373.16 billion,
while in 1998-99 these valued Rs 387.162 billion (increase of 3.8
percent). Imports in 1997-98 valued Rs 436.338 billion while in
1998-99, imported goods' value was Rs 458.499 billion (increase of
5.1 percent).
Similarly, the trade deficit in terms of rupee increased by 12.5
percent as the value of imports over exports increased in 1997-98
by Rs 663.178 billion while in 1998-99 this difference was that of
Rs 71.337 billion.
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990710
-------------------------------------------------------------------
Target for farm income tax: NWFP ignores Centre's directive
-------------------------------------------------------------------
By Intikhab Amir
PESHAWAR, July 9: After failing to meet the agriculture income tax
targets set by Islamabad for the last three financial years, the
NWFP government has ignored the target given by the federal
authorities setting its own bench mark for the 1999-2000, according
to official sources.
"Against the provincial government's repeated attempts to get the
target lowered, Islamabad set the bench mark for the current fiscal
at Rs 210 million which the provincial authorities ignored and
projected under the new budget a sum of Rs 167 m to be raised on
account of farm income tax," said the official sources.
Since the 1996-97 financial year, when the tax was levied on
acreage basis for the first time, the provincial government has
been set a target of Rs 150 million for every financial year by
Islamabad.
Against that the province has never been able to raise record
recoveries any thing near to the Rs 150 m target after it recorded
collections of just about Rs 5 m in the 1996-97, Rs 39 m in the
1997-98 whereas as per the latest available figures for the 1998-99
the province has raised just over Rs 40 m till the close of the
tenth month (April 1999) of the fiscal year. "The province is very
much likely to end up at just around Rs 50 m against the Rs 150 m
target for the 1998-99 financial year," a well placed official of
the provincial government told Dawn.
Sources said the provincial government time and again moved
Islamabad to lower its Rs 150 m target. The provincial bureaucracy
took the plea that the province had not much potential to raise
revenue as the province did not too many big land holdings.
In an attempt to meet the Rs 167 m target in the current financial
year the provincial government has withdrawn the tax exemption
facility previously available to the land holdings up to five acres
of area levying the tax at across the board level under the finance
act of 1999.
"The target set for the 1999-2000 would only be achievable if the
government goes for extending the tax net to the Malakand division"
said the official sources.
However, the sources that the extension of the tax base to the
Malakand division seemed a remote possibility as the provincial
government had to give up the move in the 1998-99 when the tax was
levied there through a governor's notification and later not
pursued on the instructions of the chief minister who was made to
do so by the ruling party's legislators from the area.
According to official sources, the Rs 210 m target for the NWFP was
a part of an IMF conditionality which Islamabad wants NWFP to
implement.
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990708
-------------------------------------------------------------------
CBR abolishes CVT charge on import of vehicles
-------------------------------------------------------------------
By Our Correspondent
ISLAMABAD, July 7: The Central Board of Revenue has notified
abolition of charge of Capital Value Tax on registration of
immovable property and on import of certain vehicles.
Through a CVT Circular No 5, dated July 5, 1999, the CBR says: CVT
on immovable properties was chargeable under paragraphs (A) and (B)
of sub-section (2) of section 7 of the Finance Act, 1989. Through
the Finance Act, 1999, the said paragraphs (A) and (B) of sub-
section (2) stand omitted. Accordingly, CVT is no more chargeable
on registration of immovable properties.
Likewise, under SRO 669 (I)/99, dated June 12, 1999, effective from
July 1, 1999, the CVT is not payable on imported motor vehicles
falling under heading No 87.30 of the First Schedule of the Customs
Act, 1969, on which single consolidated duty has been paid in
foreign exchange.
Under SRO 670 (I)/99, dated June 12, 1999, effective from July 1,
1999, one CBU passenger bus, imported under NRI Scheme will be
exempted from the payment of CVT, the circular concludes.
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990710
-------------------------------------------------------------------
S&P affirms Pakistan Eurobond rating
-------------------------------------------------------------------
LONDON, July 9: Standard & Poor's on Friday affirmed its double-'C'
ratings on the Islamic Republic of Pakistan's Eurobonds and
floating rate notes (FRNs).
At the same time, Standard & Poor's assigned its single-'B' long-
term and short-term local currency credit ratings to Pakistan.
The Islamic Republic's foreign currency issuer credit ratings
remain at 'SD' (selective default).
The outlook on the long-term local currency rating is stable. (For
all rating actions see list below.)
The double-'C' senior unsecured ratings indicate Standard & Poor's
continued expectation that Pakistan's Eurobonds and FRNs will be
restructured to comply with the Paris Club's burden-sharing
stipulations.
The Paris Club agreement, signed in January this year, asks
Pakistan to seek comparable treatment from private creditors,
including bondholders. Extending the effective maturity of
Pakistan's US$600.2 million foreign currency bond debt would permit
the rescheduling of about US$3.3 billion of official development
aid (ODA) and non-ODA bilateral debt service.
Using a mix of orthodox and heterodox policies, the government has
managed a difficult economic situation (brought on by its nuclear
tests of May 28, 1998) with limited damage to the real economy.
However, debt restructuring has been a key element of the
stabilization strategy.
The local currency issuer credit ratings on Pakistan are also
constrained by:
- A high public-sector debt burden. At about 95% of GDP, public-
sector debt (excluding guarantees) is among the highest of rated
sovereigns, and limits the government's financial flexibility.
About 45% is local-currency denominated and held by domestic retail
investors, commercial banks, financial institutions, and the
central bank; and one-half of this 45% carries short-term
maturities. Interest payments and defence expenditure will consume
over 65% of budgetary revenues this year.
- Weak financial-system asset quality. Despite capital injections
by the central bank worth 1.2% of GDP last year and tentative steps
to privatize banks, gross non-performing loans account for at least
17% of system advances. Over the medium term, Standard & Poor's
believes peak problem assets could reach 35%-70% of domestic credit
to the private sector and nonfinancial public-sector enterprises in
a reasonable worst-case scenario. Limited credit skills,
politically directed lending, and cumbersome foreclosure,
bankruptcy, and collateral-recovery procedures are likely to lead
to persistent misallocation of savings and investment.
The local currency issuer credit ratings on Pakistan are supported
by:
- Relatively conservative monetary policies. Inflation has averaged
about 10% per year in the 1990s, a trend that could be bettered
going forward. Despite the Paris Club debt rescheduling, the
treasury has continued to pay to the central bank local currency
counterpart funds for bilateral debt service on the original, pre-
rescheduling due dates. This policy, by effectively retiring about
2% of GDP worth of domestic debt to date, has resulted in the
slowest money supply growth rates in over a decade and an inflation
rate of less than 5%.
- A relatively well-developed domestic financial infrastructure
compared with other low speculative-grade sovereigns. A large
variety of local currency debt instruments allows the government to
tap a wide investor pool, facilitating local currency deficit-
financing. However, secondary-market trading in government bonds is
minimal, statutory lending requirements and other forms of
financial repression persist, and private-sector debt issuance is
limited.
The 'SD' foreign currency credit ratings on Pakistan reflect its
default on commercial bank loans, now in the final stages of a
quasi-London Club rescheduling process. Under an agreement signed
on July 6, 1999, commercial loan arrears of US$877 million will be
rescheduled through 2009. Assuming the agreement is ratified by
creditors, Standard & Poor's will then reset Pakistan's foreign
currency credit ratings to a nondefault level.
OUTLOOK (LOCAL CURRENCY): STABLE
The outlook balances economic recovery prospects against near-term
uncertainties generated by the conflict with India over Kashmir. An
intensification of hostilities could weaken the stabilization
programme and private-sector confidence.
In the longer term, Pakistan's credit standing hinges on the
government's unproven ability to sustain fiscal austerity, while
promoting reforms that foster a diversification of output and more
rapid growth. Political instability and the heavy public-sector
debt burden could limit improvements in the ratings, Standard &
Poor's said.
NEW RATINGS Islamic Republic of Pakistan Local currency issuer
credit ratings B/Stable/B
AFFIRMED RATINGS
Islamic Republic of Pakistan Foreign currency issuer credit ratings
SD/-/SD Senior unsecured debt: US$150 million 11.5% Eurobond due
December 1999 CC US$150 million step-up FRN due December 2000
(remaining amount US$200,000, following puts of US$132.15 million
on June 26, 1997, and US$17.65 million on June 26, 1999) CC US$150
million 6% exchangeable note due February 2002 CC US$300 million
LIBOR+3.95% FRN due May 2000 CC.-Reuters
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990710
-------------------------------------------------------------------
SBP calls bankers' meeting to discuss prize schemes
-------------------------------------------------------------------
KARACHI, July 9: State Bank of Pakistan Governor has convened a
special meeting with the heads of all commercial banks here on
Saturday to discuss the much criticized prize schemes launched by
banks.
The issues to be discussed include foreign exchange operations and
Credit Plan for 1999-2000.
Banking sources said Friday that State Bank and Ministry of Finance
had been urged time and again by trade and industry to ban these
schemes which according to them proliferates culture of gambling
and attracts black money.
Except NBP, all major banks including MCB, UBL, ABL, HBL and some
leading private banks have attracted over Rs 40 billion in new
deposits since the launch of prize schemes a year ago by offering
lucrative lottery prizes.
Banking sources said that some small banks in private sector have
also expressed their concern over the launch of these schemes as
their depositors have withdrawn funds to buy lottery certificates.
A Council of Islamic Ideology (CII) has two months back ruled the
schemes as un-Islamic.
The Council in communique to government said lotteries fall in the
category of riba and gambling which are forbidden by Islam.
Bankers see no harm in these schemes.
"These lottery schemes have helped improve banks' liquidity," said
a banker and maintained that inflow of funds would in turn ensure
more credit to private sector.
"Our new depositors hail from middle and lower class," he added.
According to latest statistics of SBP, the general deposits of all
scheduled banks have increased to Rs 430.3 billion on June 26,
1999, as compared to Rs 414.3 billion on May 29 showing an increase
of Rs 16 billion in deposits.-APP
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990709
-------------------------------------------------------------------
Gold price
-------------------------------------------------------------------
LAHORE, July 8: Gold prices continued to slide in the local bullion
market on Thursday, dipping to Rs 4523 per 10 gram from Wednesday's
Rs 4621.
"The downward trends in the bullion market is due to the auction of
gold reserves by Bank of England (United Kingdom) in the
international market," Hafiz Muhammad Ahmad, Chairman Lahore
Division Sarafa and Jewellers Association (LDSJA) said on
Thursday.-APP
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990708
-------------------------------------------------------------------
PM's transport scheme: Rules for exemption of duty notified
-------------------------------------------------------------------
By Our Correspondent
ISLAMABAD, July 7: Central Board of Revenue has notified the rules
for exemption from import duty to all goods imported under the PM's
Urban Transport Strategy Plan, 1999 for manufacture of vehicles.
Through a notification No F. 2(I)/Tar-II/99, issued on July 1,
1999 and released here Wednesday, the CBR says that in case of
vehicles for local manufacturing and assembling, Small and Medium
Enterprise Development Authority (SMEDA) shall specify the
quantities and particulars of components in such knocked down
condition as are in accordance with the approved deletion
programme.
The importers shall, at the time of import, submit an 'indemnity
bond' in the prescribed form undertaking that the goods shall be
used for the sole purpose as specified by SMEDA.
Goods imported under this scheme at concessionary rates of duty
shall not be transferred, provided that SMEDA may allow transfer of
such goods to any other person subject to the condition that the
person to whom they are transferred shall use the said goods for
use only under the PUTS, 1999.
In case of machinery and CKD kits the manufacturers shall within
one year of filing of bill of entry (for home consumption or ex-
bond), apply to the collector of customs concerned for discharging
'indemnity bond ' supported with a consumption of
installation certificate issued by the assistant collector
customs and central excise in whose jurisdiction the manufacturing
unit is located.
The exemption on these goods shall be granted only if it is covered
by special serially numbered certificate issued by SMEDA
addressed to the collector of customs indicating the required
detailed particulars. In case of import of vehicles in complete
built up unit (CBU) conditions, SMEDA shall specify the quantities
and detailed particulars of vehicles in line with the conditions of
the scheme.
In case of breach of the conditions of the scheme, the
collector shall order to enforce indemnity bond, and take such
penal action as he may deem fit under the Customs Act, 1969.
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990707
-------------------------------------------------------------------
'Govt has authority to regulate kerb market'
-------------------------------------------------------------------
ISLAMABAD, July 6: Finance Minister Ishaq Dar Tuesday said, the
kerb market dollar rate will not be allowed to fluctuate beyond Rs
1.50 vis-a-vis the inter-banking rates.
'We want to have a total free market economy but at the same time
want to eradicate the speculative element,' he said at a press
briefing, held to unveil details of loan-rescheduling arrangements
with the London Club creditors.
'This is high time to further discipline the market which is in
accordance with the international practice,' the Minister said.
Dar pointed out the Finance Ministry has the legal authority, given
through the Finance Act, '99, to regulate the money changers.
The Minister noted that as a result of his meetings with the money
changers, there has been a tremendous improvement in the last
couple of days vis-a-vis rupee-dollar parity.
'The open market rupee-dollar peg had gone up to Rs 56.80 while
that of Inter-bank, Rs 52.70,' he said and added, the inter-bank
dollar rate has come down to below Rs 52 which is sustainable.
'About 95% of the total transaction is done through the inter-
bank.'
The open market rates which, he said, had moved up to Rs 56.80 came
down to Rs 54.30 by end Monday and reported to be trading below Rs
53 Tuesday, the minister said. Dar observed, he has no intention to
use powers delegated through the Finance Bill, hoping, the open
market will behave in a disciplined manner.
To a question about disallowing the diplomats for converting
foreign exchange in the open market, the Minister said, it was not
in vogue even in many developed western countries.
However, the diplomats have been given the facility of
convertibility under which they can convert their foreign exchange
in the interbank market and vice-e-versa.-APP
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990707
-------------------------------------------------------------------
Pakistan bond firmer on debt accord
-------------------------------------------------------------------
LONDON, July 6: Pakistan's Eurobonds were firmer in London trading
on Tuesday following news that Pakistan had reached agreement with
private lenders over rescheduling $877.3 million of commercial
debt.
Bond traders said the agreement demonstrated Pakistan's eagerness
to differentiate between London Club commercial debt and its
sovereign Eurobond debt, making the prospect of a Eurobond default
less likely.
"News that Pakistan has reached agreement on London Club
restructuring while leaving the Eurobond question open is positive
as it shows Pakistan's willingness to draw a distinction for
Eurobonds," said an emerging debt trader at ING Barings.
"There has been a growing feeling in the market in recent weeks
that Pakistan is not going to default, and this has added to market
optimism," he said.
No rated sovereign has ever defaulted on a Eurobond but Pakistan
and a clutch of other states - including Romania and Ukraine - have
been vulnerable to pressure from official creditors to do so.
Pakistan has two floating-rate notes and two sovereign bonds
outstanding worth a total of $750 million, over half of which is
due to mature by next December.
Pakistan's most liquid Eurobond, a $300 million floating-rate note
due May 2000, was last quoted at 77 bid, 79 offered on Tuesday,
having traded as low as 50 when default fears peaked in the
aftermath of Russia's domestic debt default last summer.
Eurobond holders may have won a temporary reprieve, but analysts
stressed that Tuesday's agreement did not remove the threat that
Pakistan's Eurobonds would eventually be sucked into a broader
rescheduling agreement.
"We all know from the reports at the Paris Club that there is
considerable pressure on Pakistan to reschedule its Eurobonds,"
said an official at ANZ investment bank, adding that Tuesday's
rescheduling agreement shed no light on whether there will be an
eventual rescheduling of the eurobonds.-Reuters
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990707
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Habib Bank raises banking charges
-------------------------------------------------------------------
By Mohiuddin Aazim
KARACHI, July 6: State-run Habib Bank Ltd. (HBL) has enforced its
revised tariff from July 1, 1999 envisaging substantial rise in
bank charges for maintaining safe lockers and for issuing bank
guarantees etc.
The tariff would remain effective until revised again by the bank
management. Normally HBL tariff is revised every six months. The
tariff was last revised on Jan 1, 1999.
In the new tariff safe deposit lockers fee has been raised from Rs
1000 to Rs 1200 on small lockers and from Rs 1500 to Rs 1800 on
medium lockers. The fee for keeping large and extra large lockers
has been raised from Rs 2500 to Rs 2900 and from Rs 5000 to Rs
5500. The fee for cubical lockers has also been raised from Rs
25000 to Rs 30000.
The breaking charges for small/medium/large and extra large lockers
remain unchanged at Rs 2000 or actual-whichever is higher-but for
cubical lockers breaking charge has been raised to Rs 5000 or
actual.
The bank has started insuring its lockers only recently but it
could not be learnt immediately how much additional amount would be
payable by those maintaining lockers with HBL as the insurance
cost.
Under the new tariff, the price of the bank guarantee issued to
shipping companies in lieu of bills of lading has been raised from
Rs 600 to Rs 1000.
Similarly, the rate of commission for issuing customs guarantee in
lieu of payment of export duty which are valid up to six months has
been increased from 0.40 per cent per quarter to 0.60 per cent per
quarter. The minimum amount has been raised from Rs 600 to Rs 1000.
The rate for other guarantees remains unchanged at 0.40 per cent
but the minimum has been enhanced from Rs 600 to Rs 1000.
In domestic banking, the new tariff makes no changes in the fee for
issuing bank drafts of any kind but it has raised the fee for
cancellation of a pay order or issuance of a duplicate from Rs 25
to Rs 50. The fee for fresh pay order remains unchanged at Rs 25.
The new tariff also keeps the commission on project financing
unchanged at 0.25 per cent with a minimum of Rs 10000 for projects
involving Rs 40 million of capital cost-i.e excluding the cost of
land and buildings.
In the area of international banking, the minimum charges for
opening an international letter of credit has been raised by 100
per cent to Rs 1000.
In the revised tariff, there are seven slabs of fee (against five
in previous one) for opening international LCs of progressive worth
ranging between Rs 25 million to more than Rs 1.0 billion.
The fee for opening LCs worth up to Rs 25 million is 0.4 per cent
in the first quarter and 0.25 per cent on each sub quarter with the
minimum being Rs 1000.
In contrast the fee for opening an LC worth above Rs 1.0 billion is
0.10 per cent in the first quarter and 0.5 per cent on each sub
quarter with a minimum of Rs 1.5 million.
The rates of fee for opening other LCs are: LCs up to Rs 50m
(0.35pc-0.25pc) minimum Rs 100,000; LCs up to Rs 100m (0.30pc-
0.20pc) minimum Rs 175,000; LCs up to Rs 250m (0.25pc-0.20pc)
minimum Rs 300,000; LCs up to Rs 500m (0.20pc-0.15pc) minimum Rs
625,000; LCs up to Rs 1.0bn (0.15pc-0.10pc) minimum Rs 1.0m.
The new tariff has enhanced the fee for seeking the State Bank
approval for reimport of consignments and LC cancellation charges
from Rs 500 each to Rs 1000.
The mark-up in case of import bills under import LCs has been
reduced from 55 paisa per Rs 1000 per day to 50 paisa per Rs 1000
per day.
The rates of fee for advising on export LCs and for providing other
services provided to exporters have been left unchanged.
The new tariff keeps the rate of commission at 0.1 per cent on
remittance abroad through foreign currency accounts or transfer of
foreign currency proceeds of export bills/documents to other banks.
But it has raised the minimum commission on this service from US$ 3
to US$10 plus telex charges which remain intact at Rs 300.
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990710
-------------------------------------------------------------------
Stocks fall across a broad front amid heavy selling
-------------------------------------------------------------------
By Our Staff Reporter
KARACHI, July 9: Stocks on Friday fell across a broad front
followed by heavy selling triggered by rumours of the reported
difference between the Army Chief and the government on the Kashmir
policy.
The opening was, however, fairly promising on strong early session
short-covering in most of the pivotals under the lead of Hub-Power
and PTCL, which at one stage surged to day's peak level of Rs17.50
and 20.60, pushing the index up by over 20 points.
But afternoon session selling prompted by the rumours and
reinforced by weekend selling again pushed it down to close sharply
lower.
The KSE 100-share index, which has been moving within a narrow
range for the last couple of sessions, finally breached the
psychological barrier of 1,100 points after the rumour of army
chief's exit and there was free for all later. It was last quoted
at 1,085.06 as compared to 1,105.67 a day earlier,off 20.61 points
or 2 per cent.
The market capitalization, which has touched the resistance level
of Rs300bn again fell to Rs295bn, showing a decline of Rs5b over
the previous figure as heavily capitalized shares, PTCL and Hub-
Power fell sharply.
Floor brokers said all eyes are now focussed on the prime
minister's address to the nation on Saturday as he is expected to
speak on the Kargil issue and his talks with President Clinton on
the Kashmir.
"The market will determine possibly by the next week, which course
to follow in the light of prime minister's perceptions and policy
statement on the settlement of the Kashmir issues", they added.
Massive selling in the mega issues, notably Hub-Power and PTCL by
some leading foreign investors sent other leading stocks reeling
down on a wide front and the consequent panic.
Conflicting interpretations of the Nawaz-Clinton deal to restore
peace in Kashmir and investor enthusiasm generated by perceptions
of withdrawal of Mujahideen from the Kargil heights was no where in
sight and the consequent selling by a section of dealers. During
the last couple of sessions, the strength of Hub-Power did not
allow the market to fall as it managed to absorb selling from the
other counters amid reports of settlement of the tariff issue. But
once it gave in to the selling pressure, others blue chips followed
suit.
"The big question being asked in the rings is that whether or not
the Mujahideen will withdraw from the Kargil height and if not how
Indian will react," stock analysts said.
Although price changes were mostly fractional, minus again held a
fair lead over the gainers at 75 to 33, with 37 shares holding on
to the last levels. However, some of the shares managed to show
good gains under the lead of Union Bank, Dawood Hercules and
Prosperity Weaving, which posted gains ranging from Rs 2.00 to
4.00.
Losses were also fractional barring Adil Polypropylene, National
Refinery, Atlas Battery, Engro Chemical, Packages, Diamond
Industries and Shell Pakistan, which suffered fall ranging from one
rupee to Rs2.00.
Trading volume shrank further to 145m shares from the previous 163m
shares, bulk of which again went to the credit of PTCL and Hub-
Power. Losers maintained a strong lead over the gainers at 75 to
33, with 37 shares holding to the last levels.
Hub-Power again topped the list of most actives, off 45 paisa at
Rs16.55 on 60m shares followed by PTCL, easy 80 paisa at Rs19.50 on
49m shares, PSO, lower 10 paisa at Rs111.50 on 20m shares and Fauji
Fertiliser, easy 10 paisa at Rs43.90 on 3m shares, Bank of Punjab,
easy by 10 paisa at Rs16.00 on 2m shares and Sui Northern, down
five paisa also on 2m shares.
Other actively traded were led by ICI Pakistan, lower 30 paisa on
1.605m shares followed by Engro Chemical, off Rs1.70 on 1.238m
shares, Dhan Fibre, lower 10 paisa on 0.783m shares, Adamjee
Insurance, up 10 paisa on 0.651m shares, Dewan Salman, lower 25
paisa on 0.510m shares, and Japan Power, lower 10 paisa on 0.469m
shares.
DEFAULTING COMPANIES: Shares of three companies came in for modest
support at the previous levels under the lead of Gammon Pakistan,
which was quoted unchanged on 3,000 shares followed by Suzuki
Motorcycle, also unchanged on 2,500 shares. Chakwal Spinning
followed them on 2,000 shares.
DIVIDEND: Heritage Insurance, right shares at the rate of 21 per
cent, TFC Saudi Pak Leasing, book closures from July 14 to 28 for
determining the entitlement of redemption value.
Back to the top
===================================================================
EDITORIALS & FEATURES
990704
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Zero minus fifty-two
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By Ardeshir Cowasjee
"WRITING early in 1957, the late Professor Keith Callard, in his
'Political Study of Pakistan,' concluded that 'if representative
government collapses, it will be because its legs are not strong
enough to sustain its own body .... Pakistan, by its constitution,
is publicly committed to the operation of democratic institutions.
It is too early to say whether those institutions are likely to
mature'."
This is how Herbert Feldman opens the first book of his trilogy,
covering the politics of Pakistan - 'Revolution in Pakistan : 1958-
1962'. The second book is 'From Crisis to Crisis : Pakistan 1962-
1969', and the third, 'The End & the Beginning : Pakistan 1969-
1971'.
Feldman lived with the times and based his narrative largely on
evidence collected as events occurred. He arrived in Karachi in
1947 with the hordes from across the border. He was well connected,
having married Nishat, the daughter of Liaquat Hayat Khan, Sir
Sikander's elder brother, and was thus able to observe at close
quarters the strange and convoluted politics as practised in this
country. We read Feldman:
1962-1969: "At the beginning of August 1965 it became clear to the
world that the situation in Kashmir was no longer normal. Unusual
military activity was going on, including Indian operations in the
Kargil area, in Azad Kashmir. It appeared that India considered
that the Srinagar-Leh road, linking India to Ladakh, was threatened
and had acted accordingly. The Secretary-General of the United
Nations addressed a request to both countries to cease operations
across the cease-fire line, a request which met with a negligible
response from both." ('From Crisis to Crisis')
"His [Altaf Gauhar's] promotion in September 1963 ...... to be the
civil head of the Ministry of Information and Broadcasting placed
him in close connextion with Ayub Khan ..... He became almost at
once a member of the small top-level group which advocated a
'forward' policy with respect to Kashmir, and there is no doubt
that he was a member of the intimate coterie which vigorously
pressed such a policy on Ayub Khan. The others, including Zulfikar
Ali Bhutto, and the late Lt General Akhtar Malik, were not civil
servants ...... At the time of hostilities between Pakistan and
India in September 1965, Altaf Gauhar became very prominent in
promoting and guiding a markedly aggressive war-time propaganda in
which pro-Peking sentiments received emphasis." ('From Crisis to
Crisis' Appendix 1).
1969-1971: "It is evident that Palit's suggestion was an
unsuccessful attempt to conceal the real explanation. So brief a
period had been imposed on Aurora because India was relying, no
doubt by prior arrangement, on the Soviet Union's veto in the
Security Council. It was plain that once hostilities began in
earnest the issue would be raised in the United Nations, and India
intended that there should be no interruption in the fighting until
its purpose in East Pakistan had been achieved. But while the
Soviet Union could, by means of the veto, hold the ring, it could
not do so indefinitely, and the swift capture of Dacca, even if not
the final destruction of Niazi's army, was necessary. The Soviet
Union exercised its veto three times, thereby providing time for
General Aurora to encircle Dacca and force a surrender. It was
accomplished in twelve days and was no mean feat of arms. Had he
not succeeded, the political situation might well have become
adverse for India. Further, if Yahya Khan and his advisers had been
relying on China, or the United States, or the Security Council,
they were cruelly deceived." ('The End & the Beginning')
"Perhaps the most interesting event at sea was the appearance in
the Bay of Bengal of a task force sent by the American Seventh
Fleet comprising the aircraft carrier Enterprise, with nuclear-
armed Phantoms, an amphibious attack ship, a guided missile
frigate, dock-landing ships, and supply vessels. The United States
government explained that the presence of this force was to
facilitate the evacuation of such American citizens as remained in
the newly declared state of Bangladesh, but whether those citizens
were present in such numbers as to require so formidable a
squadron, whether they desired to leave, and whether they were in
any real danger seems extremely doubtful. It is evident that the
American ships were sent to remind the Soviet Union, then occupying
a prominent position in the drama, that the United States was not
indifferent to events in this theatre of war and had not lost
interest in the sub-continent. As it happened, India declared a
cease-fire and the American force steamed without ostentation
towards other waters." (The End & the Beginning)
"It was learned that the United States had informed Pakistan that
if India continued the war on the western front, they would give
all material help and support, but that if India declared a cease-
fire, Pakistan would have to accept it. The Soviet Union is
understood to have informed India that, after taking Dacca, a
cease-fire must be declared. Since, as it appears to me, India had
no other intention than to do exactly this, the two super-powers,
each according to its own logic, made their respective
contributions to crystallizing India 's purposes." (The End & the
Beginning)
Now we come to May 1999 when the Indians discovered the presence of
a few hundred well-armed, well-trained Mujahideen entrenched on the
Himalayan heights of the Drass-Kargil sector on their side of the
LoC. The Indian army, caught napping, was embarrassed and its
government, as weak and fragile as is ours, reacted as it did.
Let us believe our side of the story. We do not know who the
infiltrators are, we do not know who armed and trained them, we do
not know how they managed to scale the heights and occupy vantage
points. We know they are Kashmiri Mujahideen engaged in Jehad,
local freedom-fighters from Indian occupied Kashmir, continuing
their fight to deliver their brethren from Indian oppression and
occupation. The Indians are attacking them. We have nothing to do
with them, yet in the interests of peace, we would like a cease-
fire and to talk to the Indians via the back door, the side door,
or the front door, and in the interest of humanity at large we are
seeking the help of the international community to bring about an
honourable way out of the impasse. In the bargain, we would like
back some of the territory of Azad Kashmir and Jammu in the Siachen
area lost to the Indians many years ago. The Kashmir issue has to
be globalized and to prevent the use of nuclear weapons we expect
the global powers to step in and ensure that peace prevails, on our
terms, in the region and the world at large.
Now, let us not believe the big wide world's side of the story.
Credit goes to the Pakistan army for its tactics and strategy and
for the accomplishment of a tactical manoeuvre which took over six
months of prior planning, reconnaissance, the high-altitude
acclimatization and intense training of the infiltrators, and the
supply of special equipment. Presumably, this operation was given
the OK by the prime minister despite reservations from certain
quarters. He probably assured the army that as soon as vantage
points were secured our subtle diplomacy would come into play. The
world powers and our allies of the Ummah would stand by us, and we
would end up better than when we started.
Strife-torn Europe is tired and does not want another war on its
hands. America has just won a war without bringing home one single
body-bag. No mean achievement. If a war can be stopped by merely
tightening the economic screws, the tightening should start. This
would be the cheaper option.
Now, the Ummah in Ouadadougou has not sneezed, the Chinese have not
coughed, America is enjoying the long 4th of July weekend, Europe
is busy watching Wimbledon, and Big Boris is ill and, having
suffered the Taliban in Afghanistan, does not want to look our way.
Our emissaries are running round the world like headless chickens
whilst our men and brothers are dying on the heights.
To those who hold that the Vale of Kashmir has to be a part of
Pakistan, despite the desire of the Kashmiris to be independent,
and to those who feel that we can achieve this end by sending in
freedom-fighters, we say, this is an expensive exercise in
futility. If we want the Vale we will have to fight for it and we
can only embark on a fight if there is a reasonable chance of
winning. To embark, we must be strong, powerful, and equal in all
respects to the adversary. This might happen after fifty years,
starting as of now, of sustained good governance. What is fifty
years in the life of a nation?
For the present everything possible must be done to get out of the
mess, claiming we have won and letting India do the same.
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990709
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Victory in reverse: the great climbdown
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By Ayaz Amir
THAT the Kargil adventure was ill-conceived, if not downright
foolish, was becoming clear, albeit slowly, even to the
congenitally blind and benighted.
That consequently Pakistan, swallowing its pride and not a few of
its brave and gallant words, would sooner or later have to mount a
retreat was also becoming clear, especially after Niaz Naik's
secret visit to New Delhi which was a desperate bid to get India to
agree to some kind of a deal which would provide a face-saving way
out for us.
But that the climbdown when it came would be so headlong and ill-
judged, and that in the process it would leave in tatters the last
shreds of national pride, should take even prophets of doom by
surprise. A script written by a college of cynics could not have
equalled, let alone excelled, the singular performance of the Heavy
Mandate in Washington.
It is not a question of interpreting the hidden meaning of the
Washington statement. This statement is a model of clarity which
nails Pakistan's humiliation to the mast and leaves nothing to the
imagination. If it is still being proclaimed as a great step
forward to resolve the Kashmir dispute, it only confirms the view
that in Pakistan brazenness is always the last resource of a
floundering government.
To repeat the first point, at issue is not Pakistan's retreat.
Given the nature of the Kargil adventure, the fact that in planning
it the army high command substituted fantasy for a sense of
reality, Pakistan had no option but to effect a roll-back
eventually, whatever armchair Rommels might say to the contrary. As
a feint aimed at embarrassing the Indian army, the Kargil operation
could have made some sense. As an attempt at permanently occupying
the Kargil heights it was madness if only because no country,
whether India or Pakistan, would tolerate such a naked trespass
into territory under its control. At issue is the manner of our
retreat as agreed to by our great helmsman.
Even when it finally dawned upon Pakistan's Bismarcks and Napoleons
that the Kargil intrusion was a blunder, there was no reason to
panic. Pakistan still had options before it which, if sensibly
exercised, could have brought about a withdrawal with a minimum
loss of national dignity. We could have settled matters with India
and told it that a mistake had been made which we were willing to
undo provided (1) there was a scaling down of hostilities along the
Line of Control and (2) that India did not make it a point to crow
about our discomfiture. This would have been far preferable to the
course actually adopted.
But this would have required a measure of statesmanship, a quality
of which there has been not the slightest evidence in Islamabad
since this crisis erupted. So Pakistan's war leadership did what
flowed naturally from its basic instincts: go cap-in-hand to
Washington and agree to an extraordinary statement which commits us
to undo our Kargil folly.
A pathetic sop sweetens this mini-Munich: a pledge from the
American president that once concrete steps have been taken to
restore the Line of Control - that is, once we have undone our
folly - he will take "a personal interest" in encouraging India and
Pakistan to resume bilateral discussions. Only a leadership with no
idea of national pride and dignity can suppose that an empty pledge
such as this is sufficient recompense for the blood of our martyrs.
A more complete negation of Pakistan's stand, and a more complete
vindication of India's position, is hard to envisage. Yet official
drum-beaters and Pakistan Television, that weary performer forced
to dance to every government's tune, are trying to sell the
agreement sealed at Blair House, Washington, as the greatest
diplomatic triumph since the Congress of Vienna.
The people of Pakistan are not surprised. They are stunned because
this is not what they had been led to expect. The two surprised
parties must be Clinton and Vajpayee. When Nawaz Sharif telephoned
Clinton and requested an urgent meeting, the American president,
who is no one's fool, must have realized in a flash that it was all
up for the Pakistanis. But is it far-fetched to suppose that even
he must have been taken aback by the eager enthusiasm of the
Pakistani leadership to cave in and put its signature to a one-
sided document.
By the same token, Vajpayee too must have been taken by surprise.
The Indian army, despite the successes it has scored, was not
having an easy time of it in Kargil and Drass. Dangerous terrain,
an elusive enemy and heavy casualties are not things an army likes.
Imagine then the sense of relief in New Delhi when Clinton called
to say that the Pakistani leadership was about to execute a volte
face and all it demanded in return was that he (Clinton) should
give this turnaround his blessing. A bang turning to a whimper: to
this time-worn phrase a fresh meaning has been given.
The Tashkent and Simla accords look like victory parchments by
comparison. Ayub Khan did not suffer humiliation at Tashkent. Even
if the Tashkent agreement went down badly in Pakistan because
official propaganda, always a curse in this country, had raised
popular expectations to fever pitch, it was a fair agreement
between two countries which had fought each other to a standstill.
At Simla on the other hand, Pakistan was at a grave disadvantage
because it had suffered a humiliating defeat at India's hands. Yet
even in the shadow of that disaster Zulfikar Ali Bhutto, to his
enduring credit, managed to preserve what remained of Pakistan's
honour. The Washington statement defies understanding. For such
submission wherein lay the compelling necessity?
Why has this happened? The answer is simple. Pakistan has suffered
a failure of leadership, a failure of vision and, most important of
all, a failure of nerve. When the crunch came the politico-military
leadership could not take the heat.
Will explanations be demanded for this shambles? It is safe to say
no because post-mortems of this kind are not in the Pakistani
tradition. The government's spin machine will go into over-drive,
as it has already, in a bid to paint the Washington capitulation as
a Roman triumph. The Bismarcks will cover for the Napoleons and the
Napoleons for the Bismarcks.
To be sure, Pakistan's fighting men will feel betrayed. The Kashmir
cause itself has received a mortal blow. But then who cares.
Greater disasters in our history have gone unsung. The humiliation
of Kargil too (or is it the humiliation of Washington?) will soon
be Forgotten.
Even so, is there nothing to be done? To begin with, all the models
of the Shaheen and Ghauri missiles, and all the replicas of the
Chaghi hills, which adorn our various cities, should be put on
board the best of our naval cruisers and, in a solemn midnight
ceremony, dumped far out into the waters of the Arabian Sea. If
this crisis has proved anything, it is that the possession of
nuclear weapons does not confer immunity from the taking of stupid
decisions.
Furthermore, the prime minister and the army chief, if they can
help themselves, should not say anything for a while: no
explanations, no brave statements. The people of Pakistan can do
without salt being poured over their wounds.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
990710
-------------------------------------------------------------------
The end of morality
-------------------------------------------------------------------
By Irfan Husain
APPROPRIATELY enough, the evening before the world was supposed to
end last Sunday, I was watching a play about the development of the
atom bomb. Called 'Copenhagen' and set in 1941, this seems a
bizarre theme for a play, but it works well through its sparkling
interplay of ideas and personalities.
Although I am no believer in Nostradamus's famous prophecies, my
superstitious side does play 'what if' games with my rational half.
Most of the French monk's gloomy forecasts are so ambiguously
worded that you can read whatever you wish into them. But the one
about terrible destruction foretold for this month was clearer than
most; nevertheless, apart from the buzz on the internet about a
'psychic cloud' over China, nothing out of the way seems to have
occurred. So far, anyway.
Despite my scepticism, I must confess my thoughts turned towards
South Asia whenever there was a discussion about the possible
source of the disaster last week. Since the 'war' in Kosovo has
ended, there seemed to be no other major conflict on the horizon
with the potential of widespread destruction except the ongoing
conflict between India and Pakistan over Kashmir. Here are two
nuclear powers who are eyeball to eyeball over an explosive border
clash, and in this very month, the world is supposed to face great
destruction caused by 'fire from the sky'.
Fortunately, better sense seems to have prevailed when Nawaz Sharif
met Clinton, and the threat of 'fire from the sky' seems to have
receded. Until the next time, that is. The grim fact is that now
both nations have nuclear capability, there will be a strong
temptation to use it to threaten and browbeat each other, and there
is no telling which nervous finger will pull the trigger when the
game of nuclear bluff goes out of control. When the United States
and the Soviet Union confronted each other for decades, they were
fortunate in being separated by the Atlantic Ocean. So in theory,
the leaders had around 20 minutes to abort a missile or defuse a
crisis in case of a miscalculation or the irresponsible act of a
rogue missile battery commander. The leaders sitting in New Delhi
and Islamabad enjoy no such luxury.
In addition to these worrying factors are the uncertainties
introduced by an upcoming election in India and the question of who
is in charge in Pakistan. Given all these frightening
imponderables, it is not surprising that our thoughts should turn
towards South Asia when there is talk of mass destruction.
Returning to 'Copenhagen', although the debate at the heart of the
play may seem dated, it is still valid to enquire into the social
and political role of scientists: should they design weapons of
mass destruction for their respective nations? This is the dilemma
explored at length by Michael Frayn in his brilliant play. The cast
consists of three people: Niels Bohr, his wife Sara and Werner
Heisenberg. The two men were at the cutting edge of quantum
mechanics and particle physics before the Second World War, and
contributed enormously to our understanding of the true nature of
matter and energy.
Heisenberg, a German, was Bohr's student in Denmark in the early
twenties, and soon acquired fame with his 'Uncertainty Principle'.
The rise of anti-Semitism in Germany in the thirties drove away the
cream of physicists, most of whom were Jews. Warmly welcomed in the
United States, they launched the Manhattan Project to manufacture
atom bombs. Isolated from the latest research, Heisenberg headed
the German programme that did not really achieve very much.
The playwright focuses on a moment of time in 1941 when the German
scientist visited Copenhagen and speculates on what happened in his
meeting with Bohr. In a literary sense, Frayn applies Heisenberg's
'Uncertainty Principle' in his attempt to establish what the two
talked about: the play offers three different scenarios, with
Bohr's wife defending her husband's role and finally accusing his
ex-pupil of the worst possible motive in approaching the idealistic
Bohr.
Heisenberg vacillates between two positions. The first is that he
took a humanitarian stance in not making an atom bomb for his Nazi
masters; but he also admits that he had failed to carry out a
crucial set of calculations that would have confirmed that a chain
reaction was very possible to achieve. The audience is asked to
decide if Germany failed in its nuclear ambitions because of
Heisenberg's idealism or incompetence. These ambiguities and
ambitions make for riveting theatre, but at the end, I was left
asking myself whether Dr A. Q. Khan and his other colleagues in
charge of Pakistan's nuclear programme (or indeed their Indian
counterparts) have ever been troubled by such moral issues.
Of course a fundamental difference is that Dr Khan and his team are
functioning as engineers manufacturing nuclear devices on the basis
of the principles discovered earlier in this century by Einstein,
Bohr, Heisenberg, Fermi and others. They are not breaking any fresh
ground; indeed, Dr Khan is himself a metallurgist and not a nuclear
physicist at all. But nevertheless, I wonder if any of them engage
in any introspection, asking themselves if their work is morally
justified. After all, if one's research (or even application of
existing theoretical work) results in a device that can kill
millions, surely such activity should result in sleepless nights
for anybody who accepts responsibility for his actions.
The Nuremburg trials at the end of the Second World War established
the principle that to act according to orders from a superior
authority did not absolve a person of his responsibility.
Consequently, those engaged in research and development of weapons
of mass destruction cannot hide behind the defence that they are
just doing what they are paid and told to do. What distinguishes
humans from animals is free will: the former can distinguish
between right and wrong, and act on this basis; the latter act on
instinct.
But these are issues best discussed far from the smoke and din of
battle: once a nation is at war, many of these moral distinctions
are lost sight of. The war casts a long shadow over the cerebral
and passionate conversations between the protagonists of
'Copenhagen'. Even Bohr, a half Jew, admits that he helped in the
development of the atom bomb after he fled to the United States to
escape Nazi persecution.
Today, such existential debates seem almost irrelevant. Shorn of
moral moorings, we drift in a sea of convenience and compromise,
seeking only the shore of material plenty. Perhaps when Nostradamus
warned us of the destruction of the world at the end of the
millennium, he was referring to the end of morality.
===================================================================
SPORTS
990709
-------------------------------------------------------------------
World Cup: PCB requests Commission to probe into allegations
-------------------------------------------------------------------
By Samiul Hasan
KARACHI, July 8: The Pakistan Cricket Board (PCB) has requested the
judicial commission of Justice Malik Mohammad Qayyum to include in
his investigations fresh charges of betting and match-fixing in the
World Cup.
The request was made by secretary of the PCB Waqar Ahmad on the
instructions of chairman Khalid Mahmood, spokesman of the
commission said.
"Along with the request, the PCB has also attached various
newspaper clippings in which the allegations of the match-fixing
and betting in the World Cup have been levelled," PCB's legal
advisor Ali Sibtain Fazli told Dawn from Lahore on Thursday.
Fazli added that the PCB in its request has further urged Justice
Qayyum to include the World Cup in his investigations "since there
has been a lot of talk of match-fixing in some of the World Cup
matches including the final."
The PCB request comes days after its chairman went all out in
support of the team saying that the team was beaten fair and square
in the final at Lord's.
Pakistan were thrashed by eight wickets by Australia at Lord's
after accumulating just 132 runs in 39 overs. Australia, in
theirturn at the wicket, achieved victory in 20.1 overs.
"The PCB request came on Wednesday," Fazli added.
Interestingly, the PCB executive council, which is meeting on
Sunday at Lahore, is also scheduled to discuss the fresh
allegations and chalk out a policy decision. However, before the
meeting the decision has already been conveyed to the commission
which, according to officials, is a breach of the PCB constitution.
However, Fazli made it clear that the PCB request would only be
accommodated if the federal government urged the honourable judge
to include the World Cup in its investigations.
"If the federal government says no, then the PCB request will not
be entertained. Justice Qayyum has already written to the federal
government for advice and is expecting the answer early next week.
As soon as he gets the advice from Islamabad, the PCB would be
informed of commission decision," Fazli added.
Fazli said Justice Qayyum has again ordered the Ehtesab
(Accountability Bureau) to submit the report of details of their
investigations of the World Cup.
"The reply of the Accountability Bureau is also expected next week
as Senator Saifur Rahman was out of the country," Fazli added.
Country's government-run news agency had quoted an unnamed
Accountability Bureau official as saying that during the World Cup,
the players went over-board in merrymaking.
Fazli said in the backdrop of PCB request, delay in advice from the
federal government and submission of documents by the
Accountability Bureau, the commission report was unlikely to be
submitted to President Rafique Tarrar on time.
"If the federal government requests the judge to include the World
Cup, then the entire procedure of investigation would be repeated.
"Secondly, since the Accountability Bureau has not submitted its
report, compiling of one report (including commission
investigations and Accountability Bureau probe) would take its own
time," Fazli said.
He added that against expectations, Thursday's hearing didn't turn
out to the final hearing. He said the judge adjourned the hearing
saying he would give fresh date for a new hearing.
"Javed Miandad, who didn't appear on Thursday along with Ataur
Rahman, have been order to present themselves in the next hearing,"
Fazli said.
When pointed out that though Miandad has already recorded his
statement, Fazli replied: "The judge wants to know the exact story
why he resigned on the eve of Pakistan team's departure for the
World Cup. He wants to know what happened in Sharjah which forced
him to quit the team."
Fazli said the cricket board has been ordered to arrange for the
travelling of Miandad and Ataur Rahman. "Since both are in England,
the PCB has been ordered to bear their travelling expenses," Fazli
added.
Giving details of Thursday's hearing, Fazli said the lawyers of
skipper Wasim Akram and former captain Salim Malik cross-examined
their accusers.
Fazli said Salim Pervaiz, a former first-class cricketer and an
alleged bookie, repeated his allegation on Salim Malik and Mushtaq
Ahmad that he paid the two play money after a deal was struck.
"Salim Pervaiz told the commission that the two players had agreed
to arrange a couple of more players and throw away a 1994 Singer
Cup match against Australia at Colombo (Sri Lanka)."
The lawyer of Wasim Akram confronted one Mohammad Yousuf Sheikh.
"Sheikh told the commission that his brother was a bookie and had
placed a bet of Rs one million on Pakistan's victory in the 1996
World Cup quarter-final against India at Bangalore.
"Sheikh added that he was tipped of Pakistan victory by Wasim Akram
father and brother (Chaudhry Akram and Nadeem Akram respectively).
"Sheikh said when Pakistan lost the match, he demanded his money
back from Chaudhry Akram. When the money was not returned, he
reported the matter to the CIA. On the contrary, Chaudhry Akram
lodged a false FIR against him claiming that he (Mohammad Yousuf
Sheikh) kidnapped Chaudhry Akram."
Fazli said Yousuf Sheikh's statement that he was falsely implicated
was proved when Lahore's anti-terrorist court exonerated him of all
charges last week.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
990705
-------------------------------------------------------------------
PCB office virtually non-existent in chairman's absence
-------------------------------------------------------------------
By Our Sports Reporter
KARACHI, July 4: The Pakistan Cricket Board (PCB) has become
virtually non-existent in the absence of the chairman and at the
end of the chief executive's contract.
Chairman Khalid Mahmood is expected to be back in the next two days
while Majid Khan despite occupying the chief executive's office
cannot operate as second in command.
Consequently, there is no communication between the PCB and their
counterparts in various countries.
The Zimbabwe cricket board is said to be the worst sufferer.
According to sources in the PCB, they have written no less than
three letters demanding the guarantee money for their last year's
visit of Pakistan.
"But until the cheque has the signatures of the chairman and the
treasurer, it cannot be sent," sources said. In addition to this,
there have been several other letters from the Australian and Sri
Lankan cricket boards in which they either have sought the
confirmation of arrival or made queries.
"The ACB wants to know exactly when the Pakistan team is arriving,"
sources said.
Pakistan is scheduled to play three Tests starting in November
before participating in the tri-nation series involving India and
the host nation.
Next year in February, Pakistan is to play host to Sri Lanka for
three Tests and an equal number of limited overs internationals.
Following that series, Pakistan has to travel to the West Indies
where they play a three-nation one-day series with the hosts and
New Zealand followed by a three-Test series.
"The mail is lying unattended and the board has received reminders.
But no one has the authority to reply," sources said.
There is no one to offer any public comment upon Indian cricket
board chief Raj Singh Dungarpur's statement that cricket cannot
remain in isolation in the backdrop of Kashmir conflict.
The organizers of the Sahara Cup have already cancelled the fourth
edition of the tournament. There is no one to offer any reaction to
any of these issues.
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