------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 10 July 1999 Issue : 05/28 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
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 --------------------------------- 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 --------------------------------------- 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 ----------- S P O R T S ----------- + World Cup: PCB requests Commission to probe into allegations + PCB office virtually non-existent in chairman's absence

Mujahideen urged to withdraw from Kargil
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.

Nawaz, Clinton agree on pullout by Mujahideen

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
Dawn Group CE criticizes ban on website

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 

Sindh-Wapda arbitration: Contradictions in statements observed
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 
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.

Muttahida may be banned: senator

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 
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 
"In the reign of the former governor, Muslim League workers were 
neglected", he said.-NNI

Diplomats allowed to open special FCY account
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 
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.

Mujahideen reject withdrawal proposal

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 
"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

Delhi says Islamabad stance not acceptable

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

Senate seat contest: PM assures Hillary of Pakistanis' support
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 
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 
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.

Non-residents yet to benefit from SC ruling
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 
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.

US involvement essential: PM
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 
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 
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 
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 
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."

Blair terms Washington talks real progress
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 
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 
"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.

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 
"We have received protest note by the Indian HC and investigating 
into the allegations," acting Foreign office spokesman Zameer Akram 
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 
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

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.

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 
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 

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.

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 
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 
- 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 

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.
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
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

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 
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

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 

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 
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.

'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-
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

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 
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

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 
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 
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.

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 
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 
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 
"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 
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 
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
Zero minus fifty-two
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 
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-
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 
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.

Victory in reverse: the great climbdown
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 
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.

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 
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 
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.

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 
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.

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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