------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 13 February 1999 Issue : 05/07 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Accused not given equal protection of law: CJ + Federal Cabinet lifts ban on jobs + Nawaz-Vajpayee agenda includes Kashmir, N-issue + Nawaz discusses Kashmir issue with Clinton + Ehtesab bureau to have its own investigators + Govt plans to arrest corrupt leaders + Nawaz meets Abdullah: Pakistan and Jordan agree to boost ties + Benazir tells Tarar of govt's corruption + 2001 to be declared 'Visit Pakistan Year' + Statement of Altaf submitted to SC bench --------------------------------- BUSINESS & ECONOMY + Sales tax on services sector likely from April + Trade deficit shrinks by 45.76pc in July-Jan + Tariff cut plan drawn up for WCO meeting + Hubco's net profit at Rs3.3bn in 6 months + 40 banks to fund small, medium enterprises + $2.2bn debt relief: Favourable response from London Club: Dar + $50 million debt servicing: Modarabas await approval from SBP + IMF seeks report from MoF, CBR + 25pc duty on import of soyabean meal imposed + Stocks gain on revival of strong speculative support --------------------------------------- EDITORIALS & FEATURES + Has the press failed us? Ardeshir Cowasjee + The leadership vacuum Irfan Husain ----------- SPORTS + Pakistan welcome neutral umpires for Asian Tests + Kumble bags 10 wickets, as India level series + India beat Pakistan 3-0 in 4th hockey Test

Accused not given equal protection of law: CJ
Rafaqat Ali

ISLAMABAD, Feb 12: Chief Justice Ajmal Mian observed on Friday that 
the judiciary was not part of civil power, and those being tried in 
military courts were deprived of their fundamental right of getting 
equal protection of law, as guaranteed under the Constitution.
"As you have yourself said that military courts are not established 
courts, as required under Article 175 of the Constitution,this 
court has also held in the Mehram Ali case that the judiciary is 
not part of the executive, and all those being tried in military 
courts are being deprived of their fundamental right of getting 
equal protection of law," the chief justice observed.
Attorney - General Chaudhry Farooq, who is defending the 
establishment of military courts, told the Supreme Court that he 
would complete his arguments on Monday.
The AG argued before the nine-member bench, seized of the petitions 
impugning the establishment of military courts, that the decision 
to promulgate Ordinance XII for convening military courts did not 
violate Articles 245 and 175 of the Constitution.
The armed forces, he stated, could be asked to come in aid of civil 
power, which included the executive, the legislature and the 
The AG said the convening of military courts was not an 
interference in the jurisdiction of the judiciary but ,in fact, 
supported the judiciary.
Justice Nasir Aslam Zahid observed he had read in newspapers that 
the government had established six military courts for the recovery 
of WAPDA dues. The AG confirmed that such courts had been set up.
Justice Zahid inquired if the recovery of dues was also a law and 
order situation, to meet which the military courts were 
established. Justice Zahid further inquired if the government had 
any plan to set up military courts to recover loans from bank 
The AG said that recovery of WAPDA dues was a big financial issue 
and such fiscal problems had direct bearing on law and order 
situation. However, he did not commit that military courts would be 
established for the recovery of bad debts.
Justice Zahid observed whether the failure to recover dues meant 
that the civil administration had failed. The AG replied that the 
civil administration did not mean only the executive.
The AG said the army could not be called in to substitute the civil 
power but only to support it. He said the Karachi problem was not 
merely a law and order issue; it was the result of a conspiracy 
hatched by enemies of Pakistan. He said he would lay certain 
sensitive documents before the court for its perusal.
The AG referred to a press conference addressed by the prime 
minister at the time of invocation of Article 245 of the 
The counsel for MQM, Dr Abdul Basit, asked the court not to allow 
the AG to read out the statement of the prime minister as it was a 
clear contempt of the court. He also threatened to file a contempt 
of court petition if the prime minister's statement was read out.
The AG said the statement of the prime minister which he wanted to 
read out before the court did not amount to contempt of court. He 
told the counsel that he would not mind if he( Basit) filed another 
contempt of court petition.
The chief justice stopped the AG from reading out the prime 
minister's statement and observed that it was not relevant. He 
further observed that the court would examine the prime minister's 
statement and decide later whether the AG could be allowed to place 
it before the court.
Justice Saiduzzaman Siddiqui observed that what the AG was trying 
to say was that the judiciary was not being allowed by terrorists 
to function. He further observed that if the government was of the 
view that the judiciary was not being allowed to function, then an 
environment should be created in which the judiciary could work.
Justice Mamoon Kazi inquired whether the armed forces, coming in 
aid of the civil power, could be allowed to use constitutional 
power and, if so, whether the military courts could also strike 
down laws.
Justice Irshad Hasan Khan, replying to the observation of Justice 
Kazi, said if the Supreme Court held that the Ordinance XII was a 
valid piece of legislation, then the jurisdiction of high court 
would be automatically taken away. But if the court came to the 
conclusion that the establishment of military courts under the 
Ordinance XII was not valid, then there was no question of using of 
constitutional power by the military courts.
The AG said if the armed forces were asked to act they would act as 
armed forces. Justice Siddiqui observed that it must be kept in 
mind that the armed forces could be asked to come in aid of the 
civil power.
The CJ observed that the court had held in the Mehram Ali case that 
the judiciary was separate from the executive, and those who were 
being tried in the military courts were being deprived of their 
fundamental right of equal protection of law.
The AG contended that the present judicial system had been 
paralysed by terrorists and that was why the government had decided 
to establish military courts.

Justice Irshad Hasan Khan inquired if the army had been called in 
to aid the judiciary without the latter's consent, and, if so, it 
was an interference in the independence of the judiciary.
Justice Siddiqui observed that the AG's argument that the military 
courts had been established for a temporary period was not 
sustainable. "If military courts cannot be established permanently, 
how can they be established temporarily?"
The AG replied that the military courts had been convened to meet a 
special situation. The CJ stated that the army could be called in 
to assist law enforcement agencies, and could also be asked to 
investigate, but could not substitute the judicial system. When he 
observed that every person was entitled to fair trial, the AG said 
terrorists could not be called persons." They are enemies of the 
country," he added.
He AG stated that the purpose of the establishment of military 
courts was to terrorise the terrorists. The CJ observed that he had 
not allowed Aitzaz Ahsan, counsel for one of the petitioners, to 
read out an extract from a book to show that if terrorism was 
combated with terrorism there would be more acts of terrorism.
The AG said terrorism in the country had gone to such an extent 
that even the prime minister and a chief minister were getting 
threatening letters from terrorists.
Justice Irshad Hasan Khan said armymen could also be threatened by 
terrorists. The AG replied that armymen were trained to face such 
threats. He said the government had two options: to resort to extra 
judicial killings, as was done by the previous government; or 
follow the constitutional path. He said the government had opted 
for the latter.
The AG contended that the judges who were deciding cases of 
terrorists were being terrorised, and quoted a specific example of 
Saifullah Butter, special judge, Rawalpindi, who had convicted the 
terrorists who had murdered Iranian cadets. Mr Butter, the AG said, 
had been paralysed due to threats from the terrorists.
Federal Cabinet lifts ban on jobs
Ihtasham ul Haque

ISLAMABAD, Feb 11: The federal cabinet here on Thursday lifted a 
five-year-old ban on recruitment in all government and semi-
government departments.
The meeting, presided over by Prime Minister Nawaz Sharif, also 
granted five years' age relaxation to new applicants.
The cabinet also directed the concerned authorities to finalize 
details about the number of jobs which possibly could be offered in 
the federal ministries, divisions, departments and corporations 
etc. against vacant posts.
The cabinet also constituted a committee, headed by education 
minister Syed Ghous Ali Shah, to suggest and recommend procedure 
for recruitment in a transparent and fair manner, so that the 
principle of merit was upheld. The committee will submit its report 
before the next cabinet meeting.
Other members of the committee are: Mian M. Yasin Khan Wattoo, 
minister for parliamentary affairs, Capt M. Haleem Siddiqui, 
minister of state for water and power, Mr Ahsan Iqbal, deputy 
chairman, Planning Commission, secretary establishment, cabinet 
secretary and principal secretary to the prime minister, Mr Fakhar 
Imam, chairman commission for administrative restructuring shall be 
co-opted for this committee.
A senior government official when asked the government would pay 
the salaries to the additional staff and whether there existed any 
budgetary provision in this behalf, he said: "If you recall the 
government had applied 50 per cent cut on non-development 
expenditure but that salaries were excluded from the cut. You will 
understand that the ministries and divisions do have funds with 
them against possible vacancies", moreover, he pointed out that the 
ministries and divisions would now only have to pay salaries for 
the remaining three months of the current financial year and that 
for 1999-2000 the government would have separate funding provisions 
for providing jobs to new applicants.
Mr Nawaz observed that while making recruitment, merit should be 
the only criteria for selection and there should be no relaxation 
in rules.
He said efforts should be made to make the administration more 
efficient to solve various problems confronting the people. Efforts 
should also be made to create more employment opportunities for the 
youth, which was possible only through generation of new resources, 
he said.
He stressed the need for promoting tax revenues, accelerating 
privatization and increasing exports, which, he believed, would 
contribute to the process of economic consolidation.
The cabinet also approved the holding of Pakistan Business Summit 
on Feb 17 in Islamabad. This Summit will, in fact, be the final 
consultative meeting of the 9th Five-year Plan. The prime minister 
will chair the Summit, which will include professional, business 
leaders and representatives of the private sector.
The cabinet constituted a committee comprising labour minister 
Shaikh Rashid Ahmed, law minister Khalid Anwar, interior minister 
Chaudhry Shujaat Hussain, and minister of state for foreign affairs 
Mohammad Siddiqui Kanju, secretary, labour, secretary interior, to 
submit proposals regarding overseas Pakistanis in the next cabinet 
It approved a cooperation agreement between the European Community 
and Pakistan for partnership and development as well as the 
conclusion of a trade agreement between Pakistan and Bosnia and 
Herzegovina and an agreement on tourism cooperation between 
Pakistan and Greece.
It also approved degree awarding status to the Pakistan Institute 
of Engineering and Applied Sciences, Islamabad. Degree awarding 
status for DCET, Karachi, was also approved.

Nawaz-Vajpayee agenda includes Kashmir, N-issue
Hasan Akhtar

ISLAMABAD, Feb 11: Indian Prime Minister Atal Behari Vajpayee's 
visit to Lahore on Feb 20, aboard the maiden bus service between 
the two countries, the Foreign Office spokesman said here on 
Thursday, was one of such opportunities which Islamabad would not 
"let pass up" in its constant quest for negotiated peaceful 
settlement of all bilateral disputes, particularly the Kashmir 
dispute, between the two countries.
Foreign Office spokesman Tariq Altaf devoting his entire 25-minute 
weekly news briefing on the "Vajpayee's initiative" which 
undoubtedly came as a surprise and interest, both in official and 
political circles, said New Delhi had been communicated Prime 
Minister Nawaz Sharif's welcome to the Indian Prime Minister to 
come aboard the inaugural Delhi-Lahore bus service. Mr Sharif had 
earlier this week indicated his intention to make a return bus ride 
to the Indian capital to reciprocate Mr Vajpayee's gesture of 
The spokesman said an Indian officials' advance party was due to 
arrive here on Friday to hold discussions with Pakistani officials 
to formulate the schedule and discuss duration of the visit and 
other related matters, besides drawing up "a loose agenda" for the 
two prime ministers' meeting next week. He however, speculated that 
the Indian prime minister would most likely return to Delhi before 
the scheduled address of Indian President Narayanan to the 
Parliament on Feb 22.
It was further stated that as a result of Prime Minister Vajpayee's 
visit, Islamabad proposed to Delhi to reschedule the next round of 
foreign secretaries' talks due to open in the Indian capital on Feb 
18, to a later date to be negotiated. The foreign secretaries talks 
which form part of a comprehensive dialogue between the two 
countries, initiated mid-1997, were to continue the discussions on 
issues pertaining to peace and security in South Asia and the 
principal dispute of Jammu and Kashmir.
Responding to newsmen's questions suggesting that there was an air 
of mystery surrounding the coming visit of the Indian premier, 
invitation by Pakistan parliamentarians to their Indian 
counterparts to join in Basant celebrations in Lahore this month, 
the spokesman repudiated any apprehensions, emphasising that while 
the government would not let any opportunity to pass up in pursuit 
of negotiated peaceful settlement, Pakistan remained firmly adhered 
to maintain its supreme national interests. The coming visit will 
be the second by Mr Vajpayee who last came here during the Zia 
regime as foreign minister in Morarji government of India.
The spokesman said that Pakistan would seize any signal which 
augured well for better understanding between Pakistan and India, 
trusting that every incremental effort contributed to the process 
to make a forward move which might produce the desired result.
Asked whether Mr Vajpayee's visit was a discreet diplomatic move to 
upgrade the level of the Indo-Pakistan officials talks which made 
little progress in the last year or so, the spokesman while 
asserting that the foreign secretaries had barely had a chance to 
start serious discussions so far, said it was open to the prime 
ministers to evaluate the talks at official level and raise their 
status they deemed appropriate.
Commenting on reported offer of No-War by Mr Vajpayee, the 
spokesman said while it was for the leadership to respond, it might 
be recalled that in a long history of such offers being made from 
both sides, in different forms at different points of time, a Non-
Aggression pact in the context of Kashmir settlement had been 
offered to India by Prime Minister Nawaz Sharif in his speech at 
the UN General Assembly session in 1997, was the last of such 
Pakistani suggestions.
He said, "let me reiterate (that) we have principled position and 
principled policy on all the matters concerning our relations with 
India, more precisely on the core issue of Kashmir". There was no 
room for such conclusions about any mystery or the things happening 
(such as a group of parliamentarians invitation) as nothing would 
be done which was not in the supreme national interest.
The spokesman said that he did not believe that the coming visits 
from India could be construed as "normalization of relations" with 
Delhi, affecting the sentiments of the Kashmiri freedom fighters. 
He reiterated Pakistan's firm support to the cause of the Kashmiri 
people and hoped that the exchange of views between the Pakistani 
and Indian parliamentarians would enable the Pakistanis to impress 
on their Indian guests the validity of the Kashmiris' struggle and 
the Indian MPs would appreciate and work to create better 
understanding of the problem.
The spokesman regretfully observed that since the last Indian Prime 
Minister's visit (Rajiv Gandhi) 10 years ago, not much change had 
occurred except that as a result of (unresolved Kashmir dispute and 
other problems) this region had not made as much progress as was 
expected. "We need to give fillip to efforts for resolution of 
disputes so that once they are behind us we can exploit all the 
opportunities with intensified cooperation in all the countries of 
the region, particularly between Pakistan and India", he said.
Asked whether the Prime Ministers would discuss the issue of 
signing the Comprehensive Test Ban Treaty (CTBT), the spokesman 
said that it was open to the two leaders to take up any issue of 
mutual interest any time anywhere.

Nawaz discusses Kashmir issue with Clinton

ISLAMABAD, Feb 10: Prime Minister Nawaz Sharif on Wednesday said, 
US President Bill Clinton realized more than himself, the 
significance of the settlement of Kashmir dispute, for establishing 
peace in South Asia.

Clinton was,"well aware of the importance of Kashmir," and "thinks 
that Kashmir issue should be resolved," Nawaz Sharif told reporters 
at PAF base Chaklala on his return from a 2-day visit to Jordan and 
UAE here.
When asked, what was the focus of his discussion during his meeting 

with Clinton, Nawaz Sharif said, they held talks on all the "main 
issues," including Kashmir dispute.
The prime minister said he "did talk about Kashmir," during his 
meeting with Clinton in Jordanian capital Amman. Besides the on-
going Foreign Secretary Pakistan-India talks also figured during 
the meeting, he added.
Clinton was amongst large number of presidents, prime ministers and 
princes who descended in Amman to pay their last tributes to late 
King Hussein who died of cancer last Sunday.
Nawaz Sharif, along with Foreign Minister Sartaj Aziz, Information 
and Culture Minister Mushahid Hussain Sayed, MNA Ejaz ul Haq, 
Foreign Secretary Shamshad Ahmed had gone to Amman last Sunday 
night to participate in the last rites of the funeral of King 
Hussein of Jordan.
On his way back, he has an overnight stay at UAE and held talks 
with its leadership on bilateral issues.
The prime minister told another questioner, the new Jordanian King, 
37, Abdullah bin Hussein, like his late father was, keen to further 
cement existing ties between Pakistan and Jordan.
Late Hussein was a good friend of Pakistan and the two sides had 
co-operation in many fields.
The basic purpose of the visit was to attend the funeral of King 
Hussein but this gave him an opportunity to meet world statesmen.
Nawaz Sharif during his meetings with world leaders, discussed with 
them bilateral matters.APP

Ehtesab bureau to have its own investigators
Bureau Report

ISLAMABAD, Feb 10: The government has decided to strengthen the 
role of the Ehtesab bureau, led by Senator Saifur Rehman, by 
expanding it and equipping it with a regular staff for 
investigation and other statutory functions, it is learnt.
Reliable sources told Dawn that Senator Saifur Rehman had shaped up 
a strategy to organize Ehtesab Bureau in such a way that it should 
function like a fully-fledged investigation agency relying not 
merely on the Federal Investigation Agency for probe into matters 
referred to it by the authority.
"For the purpose of erecting an effective structure as envisaged in 
the statute under which the Ehtesab Bureau is operating, Senator 
Saifur Rehman has sought the creation of more than 60 positions in 
higher grades (17 and above)," a source said, disclosing that the 
allied staff (attached with the senior offices) which runs into 
hundreds had also been sought.
Currently the Ehtesab Bureau is working on a part-time basis and is 
without any budget. Officers connected with the bureau, the sources 
said, were serving on attachment basis and were without any regular 
posting in the EB.
Prime Minister Nawaz Sharif has reportedly given his consent to the 
proposed beefing up of the Ehtesab Bureau but decided to implement 
it in phases. In the first phase a total of 10 positions in higher 
grades along with allied staff will be created. Further expansion 
will be made during the next financial year.
It was owing to the serious financial crunch the country is facing 
today that the decision was taken to implement the expansion 
programme of the Ehtesab Bureau in phases.
The 10 offices being created in the first phase were being shown 
under the accountability and coordination cell of the prime 
minister's office, whose chairman is also Senator Saifur Rehman. 
This, according to sources, was being done only to avoid engaging 
the chief ehtesab commissioner secretariat. Under the Ehtesab Act, 
the EB was the investigation agency of the CEC secretariat under 
the ministry of law and justice.
The expansion, the sources said, would help the senator in 
disposing of references stuck up before it.

Govt plans to arrest corrupt leaders

LAHORE, Feb 11: About 100 political leaders allegedly involved in 
corruption while in power would be arrested in the near future and 
the government has already collected evidence against them. A dozen 
of them would be apprehended before Eid-ul-Azha, the head of the 
Punjab Anti-Corruption Establishment (ACE) said here on Thursday.
Talking to newsmen at his Farid Kot House office, Khwaja Siddiq 
Akbar said some 'big fish' would be rounded up during the next four 
to five days. "All corrupt people should get ready for 
accountability. All 'looted' national wealth would be recovered 
from such people".
Asked whether those to be apprehended would also be from the ruling 
PML, Khwaja Siddiq said: "We are going to lay hand on those who 
have been in power in the past and have been misusing their 
He said making a departure from the past practice when only the 
junior officials were taken to task, the PML government had dared 
nab the big wigs.
He claimed that accountability process launched by the present 
government had been welcomed by the people at large and they were 
happy that the looted national resources were being taken back from 
the culprits.
About former Punjab chief minister Manzoor Wattoo, he said he was 
being interrogated at the Qila Gujjar Singh Police Station. The 
plan to shift him to anti-terrorist centre at Chuhng had been 
dropped as there was a wrong impression that everybody lodged there 
was tortured.
Asked whether this meant that the Jinnah Muslim League president 
would not be shifted to the notorious place even in the future, the 
ACE chief said interrogation was the real objective and Mr Wattoo 
would be kept at a place where it could be carried out more 
effectively and conveniently.
He said Mr Wattoo's 'honeymoon' period was over and now nobody 
would be allowed to meet him.
At night, he said, the former chief minister would be put in a 
lock-up while during the day he would be interrogated.
He said the government did not want to subject him to mental 
torture. However, he said, he would be investigated like an 
ordinary citizen.
"The first recovery from him is expected to be made on Friday," the 
ACE chief said.
He said a Honda Civic car (LOG 2222) owned by Mr Wattoo had already 
been seized as it was allegedly purchased with the Baitul Maal 
About the arrest of Mr Muazzam Wattoo, the ACE director said he had 
been arrested on the charge of 'stealing' a video camera.
Meanwhile, Aamer Zamir, a former comptroller of the chief 
minister's 7-Club Road office and a contractor, Habib Kunwar, have 
been taken into custody for investigation. The two are also 
reportedly responsible for causing a financial loss to the 
exchequer. There are indications that architect Nayyer Ali Dada 
will also be taken into custody for probe.
The ACE chief confirmed that MPA Muazzam Wattoo, son of former 
chief minister Manzoor Wattoo, had been arrested for taking away a 
video-camera worth Rs400,000 purchase with the public money.
He said many personal servants of former chief minister Wattoo who 
had been given financial assistance from public money would be 
given a chance to provide evidence against their boss.

Nawaz meets Abdullah: Pakistan and Jordan agree to boost ties

AMMAN, Feb 9: Pakistan and Jordan on Tuesday agreed to further 
enhance and consolidate their bilateral economic relations.

These relations were reviewed at a meeting held by Prime Minister 
Nawaz Sharif with King Abdullah bin Hussein of Jordan, at the Royal 
It was agreed that improvement of economic relations is in the best 
interest of the two peoples who cherish sentiments of goodwill and 
cordiality, officials stated.
Prime Minister Nawaz Sharif condoled the sad demise of King 
Hussein. Paying rich tributes to the deceased, the PM said, the 
late king was a true and trusted friend of Pakistan.
He eulogized the contribution made by late King Hussein for the lot 
of the Muslim fraternity and for the support and advancement of 
their causes.
Reciprocating, King Abdullah bin Hussein said the relationship 
between the governments and the two peoples was exemplary, and 
these bilateral relations would further improve in the time ahead.
Mr Sharif extended an invitation to King Abdullah, which he 
accepted and said, he would undertake the visit at the first 
Minister for Foreign Affairs Sartaj Aziz, Information and Culture 
Minister Mushahid Hussein, MNA Ejazul Haq and foreign secretary 
Shamshad Ahmed were also present in the meeting.
The prime minister on the occasion felicitated King Abdullah on 
ascending the throne of the Hashemite Kingdom of Jordan and 
recalled how his father had been a man of peace both for the region 
and for the world in general.
The PM later also met the other members of the royal family and 
condoled the death of King Hussein.
Later, Prime Minister of Jordan Dr Fayez Taraneh held a meeting 
with Nawaz Sharif.
Later on reaching Abu Dhabi, Mr Sharif held a meeting with UAE 
President  Sheikh Zayed bin Sultan Al-Nahyan.
The PM briefed him about the regional situation, with a special 
reference to Pak-India relations, Kashmir and Afghanistan.
Sheikh Zayed reiterated his support for Kashmir and early 
settlement of the issue,  and also supported Pakistan efforts for 
Afghanistan peace.
He inquired about development activities in Pakistan and showed his 
special interest in agricultural and irrigational projects.APP

Benazir tells Tarar of govt's corruption

ISLAMABAD, Feb 7: Opposition leader in the National Assembly and 
former prime minister Benazir Bhutto has written another letter to 
President Rafiq Tarar and recalled that in her earlier letter of 
December 24,1998 she had raised serious issues regarding Nawaz 
Sharif government's handling of two major projects.
Ms Bhutto said that she had noted that the government had issued 
some press releases relating to the matters raised in her letter to 
President. She said courtesy demanded a formal response from 
President. As to the so called rejoinders issued by the government 
she would like to bring the following to his attention, she said.
She looked forward to receiving a response from him on these 
matters and in particular the steps he has taken to ensure that the 
interests of the country are duly protected.
She said that she was sending copies of her letter of 24 December, 
1998 and of this letter to other high government functionaries like 
the chief justice of Pakistan, chief of army staff and chief 
ehtesab commissioner, chairman WAPDA so that they were kept fully 
aware and informed of these matters.
Liberty Power Project: In her letter Benazir Bhutto has asserted 
that this project has been given an additional benefit by the Nawaz 
Sharif's government and it has been substantiated through the 
summary submitted by chairman WAPDA to the ECC wherein WAPDA has 
complained that the arrangement between Ehtesab Bureau and 
Independent Power Projects will cause a huge financial loss to 
"In fact Liberty is to receive a tariff increase of $22kwh over the 
tariff negotiated by Pakistan People's Party government. This will 
increase Liberty's return by millions of dollars", Ms. Bhutto said.
The contradiction in the position of Nawaz Sharif's government is 
apparent as on the one hand Liberty was touted as a project which 
had allegedly been involved in a number of corrupt practices, but 
now has been a major increase has been made in its tariff, beyond 
the tariff agreed by PPP government without exception for all 
projects, she said.
Furthermore, it is now confirmed that this "corrupt" project has 
given permission to move into Phase 11 and add another 250mw to its 
capacity using pipeline quality gas, notwithstanding Nawaz Sharif's 
position that her government's power policy resulted in over 
capacity, the letter said.
White Oil Pipeline Project: She explained to president, "I had 
mentioned to you in my letter that the government has not accepted 
the lowest bid for this project, although this bid was received 
through an international tendering process. I had further informed 
you that the government intended to re-bid the project in order 
that it be given to a favoured party. I had stated that a re-bid 
will result in a loss of US$1.8 billion to the country. It now 
appears that in addition to the above the country due to the 
government's manipulation of the bidding process will suffer 
billions of rupees of losses in terms of penalties due to the delay 
in awarding the project".
Opposition leader said the government had now, as expected, ordered 
the re-bid of the project from among only four bidders for the 
project and excluding others who had expressed an interest in the 
2001 to be declared 'Visit Pakistan Year'

ISLAMABAD, Feb 8: Federal Minister for Information Mushahid Hussain 
Syed has said that the year 2001 will be declared the "Visit 
Pakistan Year".
Addressing a press conference here on Sunday, he said that to 
promote tourism and culture in Pakistan, a comprehensive and 
effective policy would be evolved and to implement this policy, 
"national tourism task force " would be constituted. He said that a 
national tourism conference would be held in the federal capital on 
Feb 27 in which experts pertaining to tourism would take part.
Mr Mushahid said that to create a better image of Pakistan in the 
external world, it is essential to develop Pakistani culture. He 
said today tourism has assumed the status of second largest 
industry in the world.
He said that Pakistan would get in touch with the world tourism 
conference and impress upon it to declare year 2001 Pakistan visit 
year. For this purpose, he said, tourism will be promoted. He said 
that world's eight out of the ten highest peaks are located in 
The minister said that the youth conference would be convened on 
March 15 in Islamabad.

Statement of Altaf submitted to SC bench
Faraz Hashmi

ISLAMABAD, Feb 8: The Muttahida Qaumi Movement on Monday submitted 
a statement of its chief Altaf Hussain along with a copy of an 
accord signed between it and the Muslim League government in 1997, 
before a nine-member Supreme Court bench hearing its (MQM's) 
constitutional petition against the establishment of military 
In the statement, Mr Hussain has said that a constitutional 
petition  spread over 22 volumes -filed by MQM in December 1994, 
should also be reviewed by the apex court along with the 
constitutional petition challenging the setting up of military 
All the victims of state suppression should be allowed to appear 
before the court, cases of custodial killings should be 
investigated and an inquiry into the military operation carried out 
on the pretext of arresting" 72 big fishes" should be conducted, Mr 
Hussain appealed to the court.
He appealed to the court to review the whole thing so that it could 
decide whether MQM or the government or the establishment was 
responsible for the present situation.
Tracing the roots of the Sindh problem, Mr Hussain said that under 
a well- thought-out conspiracy, certain vested interests were 
trying to paint frustration and a sense of deprivation prevailing 
among the people of Karachi as "anti-state sentiments."
He said the frustration and sense of deprivations was the outcome 
of discriminatory policies consistently pursued by all successive 
governments against the urban population of Sindh during the last 
50 years.
It was being done deliberately to subvert a consensus emerging 
among the urban population of Sindh, he said.
Mr Hussain recalled that after the assassination of prime minister 
Liaquat Ali Khan, every government was dominated by feudals, who 
had been given huge landholdings by the British empire account of 
their services to it.
The hold of the feudals on power was so strong that no leadership 
from middle and lower middle classes could emerge in the country, 
he added.
Giving a background of the situation which had led to the creation 
of MQM,he said the people who had migrated from India, making great 
sacrifices for Pakistan, were made targets of different 
conspiracies from the very first day.
Mr Hussain recalled that after the imposition of martial law in 
1958, hundreds of civil servants were sent home on forced 
retirement.A discriminatory policy to screen 'Mohajirs' was adopted 
in the recruitment to civil services and defence forces.
He alluded to the elections of 1964 in which the people of Karachi 
had unanimously supported Mohtarma Fatima Jinnah against Ayub Khan. 
He said bands of armed men were transported to Karachi by Gohar 
Ayub Khan for celebrating the victory.
These armed people, on the instruction of Gohar Ayub, carried out 
attacks on Mohajir localities, Mr Hussain said and added that the 
unarmed Mohajirs had to set up night pickets in there areas to 
defend themselves and their children.
Had these armed people been punished, the issue would have been 
solved then and there, he said.
Later, during the Yahya Khan government, he said, Mohajir civil 
servants were retrenched on a large scale. The suppression of 
Mohajir community did not stop there and later, during the 
government Zulfikar Ali Bhutto, language riots occurred, in which 
thousands of innocent people were killed.
Mr Hussain said the same government imposed the curse of quota 
system on the population of Karachi. He regretted that even the 40 
per cent share in governmentjobs, given to the people of Karachi in 
the quota system, was never observed.

During the government of Z.A.Bhutto, he said, hatred among the 
urban and rural populations reached its peak. It went to such an 
extent that Mohajirs became aliens in their own country and no 
Muhajir student was allowed to get himself admitted to educational 
institutions in rural areas, he said. Thus, he added, hundreds of 
Mohajir students were prevented from acquiring higher education.
Mr Hussain recalled that when he was studying at the Karachi 
University, every ethnic entity of the country had its own student 
organization there. He said he had laid the foundation of All 
Pakistan Mohajir Student Organization (APMSO), to provide security 
to the Mohajir students against excesses of ethnic bodies.

Sales tax on services sector likely from April
Ikram Hoti

ISLAMABAD, Feb 12: Pakistan plans to impose sales tax from April 1, 
1999 on the services sector, professionals and businessmen, sources 
The International Monetary Fund is believed to have agreed to the 
proposal. An IMF team currently visiting Pakistan on a receipt-
spending 1998-99 appraisal mission, was presented with the plan on 
Wednesday last, with a draft for implementation of provincially 
levied new tax called Services Industry Tax.
This draft is based on proposals prepared by a committee jointly 
set up by the ministry of finance, CBR, and secretaries of finance 
from all the four provinces, in the last week of January. The draft 
was examined by the Law Division for preparing a draft bill. This 
draft bill will now be sent for approval by the provincial 
assemblies sometime this month.
The provincial governments and their respective assemblies' 
secretaries would be tabling the bill in the first week of March.
The bill draft reportedly lays down that the SIT would be levied by 
the federal government on behalf of the provincial governments; and 
the rate of the tax would be fixed in coordination between the 
finance ministry, CBR and the provincial ministries of finance. The 
three sides, under the guidelines furnished in this connection by 
an agreement reached two months ago between Pakistan and IMF, would 
be examining next week as to what amount of money is estimated from 
the levy of this tax.
The Pakistan-IMF agreement in this connection is based on the 
formula stipulating that the provincial governments should be doing 
away with all its major taxes; enhancement of the provincial funds 
through deposits of the scaled up federal taxes; rate and method of 
collecting SIT and disbursement mechanism of the tax money 
deposited under the parameters fixed in the National Finance 
Commission Award, before the imposition of the tax. The CBR sources 
told Dawn that a sum of Rs2 billion is estimated from SIT while the 
CBR has drawn a list of services and supplies to be covered by the 

Trade deficit shrinks by 45.76pc in July-Jan

ISLAMABAD, Feb 11: The first seven months of 1998-99 registered a 
drop of 11.82 per cent in exports, Federal Bureau of Statistics 
stated here on Thursday.
The exports during the period July-January (1998-99) totalled $4.36 
billion, down $58m from the corresponding period of last year. The 
imports totalled $5.07 billion as against $6.26 billion in the 
comparable period of last year, denoting a decline of 18.95% in 
On the positive side, the trade deficit decreased by 45.76%. In 
July-January, 1997-98, it had stood at $1.31 billion, compared to 
$713.7m in the current financial year.
The figures also show a steady month-to-month drop in exports. In 
the month of January, Pakistan's exports totalled $541.91m, showing 
the highest decline of 26.01 per cent in exports from the month of 
December, 1998.
The imports amounted to $691.9m last month, down by 9.0% from 
previous month. When compared with January 1998, exports show a 
drop of 10.24% and imports 12.34%.
When compared with January 1998, exports went down by 10.24% and 
imports by 12.34%.
The month has left a big gap between the target for the year and 
actual performance during its first seven months. Pakistan exported 
goods at the monthly average of $0.623 billion as against the 
required average of $0.833m.  
In the hypothetical case that the country can now fulfil the target 
of $10 billion, it would have to aim at exports averaging $1.12 
billion during the remaining five months of the year.
Further analysis of the trade figures shows continued downturn of 
all the categories of exports goods. Thus the primary commodities 
dropped by over a quarter during the period July-January (1998-99), 
textile manufactures by 12.23%, and other manufactures by as much 
as 15.53%, compared to the corresponding period of last year.
The share of manufactured exports ($3.39 billion) in the total 
figure stood at 77.75% during the period under review. The same 
period in 1997-98 had registered their share as 79.36%.  about two 
per cent decrease.
In the category "textile manufactures", the only items which showed 
positive growth were knitwear, bedwear and other textile made-ups 
(excluding bedwear and towels). But their export totalled about 
$890m, only 20.3% of total exports. This compares with nearly $827m 
worth of exports for the comparable period of last year.
The country exported 228,735 tons of cotton yarn during the year, 
down 15.12% from last year. In dollar terms, however, this amounted 
to $521.98m or 25.25% less than the amount grossed in July-January 
of last year. This indicates a steep drop in unit value of our 
cotton yarn in the world market.
Cotton fabrics, their position as the biggest single earner of 
foreign exchange notwithstanding, declined in terms of its exports. 
These totalled $602.9m, compared to $699.2m last year, denoting a 
drop of 16.01% in dollars. Quantitatively, their export dropped by 
Interestingly, exports of towels improved quantitatively by 6.81%, 
but in dollars its exports were down by 5.23%. 
Among other manufactures, the exports (in dollars) of carpets 
declined by 4.54%,, petroleum & petroleum products by 20.11%, 
sports goods by 37.23%, surgical & medical instruments by 17.73%, 
cutlery by 4.87%, onyx manufactures by 56.28%, and molasses by 
The non-traditional items categorized as "others" continue their 
surge. Their exports amounted to $455.7m, up 37.44% from last year. 
The primary commodities exports stood at $0.516.04 billion, 
compared to $0.689 billion in the comparable period of last year. 
This denotes a sharp decline in their contribution to total exports 
from 13.93% to 11.83%. 
The quantity of rice exported in the last seven months was 847,764 
tons, down 18.35% from the comparable period of last year. That in 
dollar terms, the export earnings declined by 7.26% shows that rice 
this year fetched higher unit value.
The raw cotton exported this year is almost half of 65,764 tons 
exported last year. The only items which showed positive growth 
were vegetables and oil seeds, nuts and kernels. 
In the month of January, the decline in exports of primary 
commodities was still greater: more than 26 per cent. 
IMPORTS: The Food Group accounted for 18.19% of the total import 
bill, as against 19.97% last year. Major items in this group as 
usual were wheat, soyabean oil and palm oil. But while the import 
of wheat (15,53,609 tons) was substantially lower than last year, 
that of the edible oils again showed upward trend. Thus the imports 
of soyabean oil and palm oil were up by 52.79% and 157.14% 

Tariff cut plan drawn up for WCO  meeting

ISLAMABAD, Feb 11 : The Ministry of Commerce will submit a detailed 
list based on Customs-tariff-reduction plan to the World Customs 
Organisation's meeting to be convened next month in Brussels.
The plan based on gradual tariff-rate reduction during 1998-1999-
2000-2001-2002 will be presented by Shahid Ahmad Khan, commercial 
minister in Pakistani embassy in Brussels. The plan has been drawn 
up from the agenda agreed under ESAF-1995, ADB's export-barriers-
reduction formula of 1997, and the Finance Act 1998.
A total of 26 items have been framed by the commerce ministry for 
rate-reduction at the import stage; 13 items for elimination of 
regulatory duty; 105 sectors' 604 sub-sector import duty rates for 
reducing to the minimum rate of 35 per cent.
These changes, as per the plan, would be realized in three phases, 
dealing with the first category of items by the end of the current 
financial year, second category of items toward the end of year 
2000, while the rest of the changes would be spread for realization 
in the period between 1999-2002.

Hubco's net profit at Rs3.3bn in 6 months
Dilawar Hussain

KARACHI, Feb 11: The Hub Power Company Limited (Hubco) announced 
net profit at Rs3.3 billion, equivalent to earning per share (EPS) 
at Rs2.86 for the first half of the year ended December 31, 1998.
The unaudited accounts for the six months were approved by the 
Board at its meeting held in London on Wednesday but reached the 
trading hall of the exchange on Thursday at around noon.
No interim dividend, either in cash or bonus, was declared for the 
half year; a robust cash dividend at 70 per cent had been paid the 
previous year. Chief executive, S.K. Husain explained the reason 
for omission: " The ongoing litigation and the restriction imposed 
by the Courts places the directors in a position where they are 
unable to recommend an interim dividend".
The half term figures drew mixed reaction from stock strategists, 
but most felt that the numbers were in line with expectations. 
Estimates of taxed profit, by some of the leading brokerages for 
all of the year 1999, ranged between Rs5.9 to Rs7.3 billion.
Earning per share for financial year 1997 had amounted to Rs6.34, 
which had scaled further to Rs9.34 for 1998. But many of those who 
saw lower-than-expected earnings in the latest interim release were 
not bothered anyway. "Given that the Internal Rate of Return (IRR) 
has been guaranteed at 17 per cent in dollar terms over the 30-year 
life of the project", explained one analysts, "Even if the 1999 
full year earnings fall short, they could be recouped in the 
subsequent years", he said.
The company has been embroiled in bitter battle with the government 
on issues ranging from high tariff to alleged bungling and kick-
backs, all of which the company has continued to "strenuously 
deny". In sympathy with the rising and fading hopes of investors, 
the share in Hubco has seen unprecedented volatility during 1998, 
with the price of the 10-rupee scrip trading between the highest 
Rs63.50 and lowest Rs7.80. On Thursday, the share recorded 20 paisa 
fall to close at Rs11.05, from Rs11.25, after hitting the day's 
best at Rs11.70.
Writ petition against the company had been filed in the Lahore High 
Court on May 8, 1998. Therefore, analysts who had not been buoyed 
by the splendid profitability at the close of the previous year and 
expected the first half of the current year to be affected, were 
proved correct.
Turnover for the latest six months amounted to Rs9.8 billion. This 
was lower than the 1997 half-term turnover at Rs11.9 billion. But 
many analysts thought that it could have been worst. They 
maintained that the interim figures ought to be taken 'with a pinch 
of salt', since faced with acute cash flow problems, revenues had 
been booked not on actual receipts but on accrual basis.
The company admitted as much: Report of the directors for half year 
states: "Turnover (for the six months) is based on amounts billed 
to Wapda in accordance with the Power Purchase Agreement (PPA). 
Included in this amount is Rs1.7 billion which has not been paid by 
Wapda due to restrictions imposed on Wapda by the Supreme Court of 
Pakistan." Minus the sum, the company conceded, net profit would 
have been lower by "approximately 50 per cent i.e Rs1.6 billion".
On the operational side, the company was reported to have generated 
2,447 GWh of power against the net capacity of the plant at 1,200 
MW, achieving thermal efficiency rate of 38 per cent.
Directors reported that on July 9, 1998, the company had commenced 
Arbitration proceedings with the International Chamber of Commerce 
in accordance with the terms of the Power Purchase Agreement (PPA), 
"seeking an adjudication on the enforceability of the PPA". 
The directors' statement ended on a conciliatory note: "Nonetheless 
the company continues to seek an amicable resolution of its 
disputes with Wapda in an atmosphere of mutual respect and 

40 banks to fund small, medium enterprises

KARACHI, Feb 11: Over 40 commercial banks will join hands with 
Small & Medium Enterprise Development Authority (SMEDA) to ensure 
that genuine demand for private sector credit is created and met 
lest the economy plunges deeper into a slowdown.
An understanding in this respect was reached at a meeting here on 
Thursday between top bankers and SMEDA chief Khawaja Bilal who 
briefed them about some potential small and business enterprises 
including fishing.
Some participants of the meeting told Dawn that SBP Governor Dr 
Muhammad Yaqub, who was in the chair, said that SMEDA and banks 
should work together to promote a new class of small and medium 
businesses. He said this could be done by SMEDA exploring new areas 
of investment and banks meeting their borrowing demand.
The participants of the meeting said SBP chief made it clear that 
banks would not be forced to lend in the projects identified by 
SMEDA without the projects being commercially viable. They said he 
also was of the opinion that genuine demand for private sector 
credit had slowed adding that the bankers present at the meeting 
linked to a slump in industrial activity.

"The governor was of the view that the trend could be reversed if 
SMEDA identifies small and medium businesses to be developed and 
banks cater to their borrowing requirements," one participant said. 
He said the governor also pointed out that the pattern of credit 
disbursement by banks showed a heavy concentration on some 
traditional areas and underlined the need for creating demand for 
small bank loans.
Participants of the meeting said SMEDA chairman identified at least 
six areas where small and medium enterprise could be built up and 
existing facilities upgraded. These included (i) export of fish and 
fish products (ii) sportswear (iii) cutlery (iv) apparel and 
clothing (v) information technology and computer engineering and 
(v) exports of vegetables and flowers etc.
They said he made an exhaustive representation on how fishing 
industry could be revitalized with an additional funding of some 
Rs6 billion. They quoted him as saying that Rs2 billion could be 
raised by the businessmen coming up to invest in this area and 
banks would need to lend around Rs4 billion.
Bankers said they did not make any commitment but agreed in 
principle that if SMEDA could put up commercially viable projects, 
banks would not hesitate in offering small and medium loans for 
this purpose. The bankers said state-run banks had already been 
offering credit to small and medium enterprises.
The participants of the meeting said most bankers as well as SBP 
Governor Dr Yaqub were of the opinion that by diversifying their 
loans into small and medium businesses banks would run lesser risks 
of loan default. They said the bankers admitted that the impact of 
even a higher rate of default in small loans would not be as 
damaging on banking sector as a single default in a big loan.

$2.2bn debt relief: Favourable response from London Club: Dar
Ihtashamul Haque

ISLAMABAD, Feb 10: Pakistan has received a favourable response to 
have its $2.2 billion commercial loans rescheduled from the London 
Club shortly.
"After the IMF and the Paris Club, the London Club has also 
indicated to reschedule our commercial loans", said the Minister 
for Finance Ishaq Dar.
Talking to Dawn here on Wednesday he said that a great respite has 
been provided to Pakistan by the international lending institutions 
in the shape of rescheduling the country's loans. He said had there 
been no international sanctions in the wake of 28 May nuclear 
blasts, the country would not have faced serious balance of payment 
"But it is good that we have not defaulted and repaid about $700 
million despite facing sanctions", the minister for finance said.
Responding to a question, Dar said that there was no new 
conditionality added in the Policy Framework Paper (PFP) to 
increase prices of various utilities. "The agreement with the IMF 
is primarily based on our own home grown new measures to put the 
economy back on the rail", he said.
He also said that the government was not seeking $19 billion new 
loan on higher mark-up to manage its balance of payment problem. "I 
do not know why you people are writing that Pakistan is now a 
seriously debt trapped country", he said adding with the 
rescheduling of loans from the IMF and Paris, government was not 
facing any major problem. "In fact these rescheduling will help us 
to have a better GDP growth rate at the end of 1998-99".
To a question he said that the meeting with the London Club was 
being finalized and that he is expected to leave shortly for London 
to get the debts restructured.
Asked whether the government was considering any devaluation of 
Pakistani rupee to increase the country's exports, he said that no 
such thing was in the offing as was speculated in the section of 
the press. "Let me tell you again that no devaluation, no doing 
away with the multiple exchange rate and no increase in various 
utilities is in plan", the finance minister asserted.
Asked about the foreign exchange reserves, he said they have 
increased to about $1.7 billion.

$50 million debt servicing: Modarabas await approval from SBP
Mohiuddin Aazim
KARACHI, Feb 9: Four Modarabas that had failed to service some $40 
million worth of IFC debt on time sought a three-month grace period 
from their lenders but they did not get a formal response.
Senior managers say a number of Modarabas have also failed to 
service another $10 million worth of foreign debt raised from other 
international financial institutions due to restrictions on capital 
flows imposed after May 28 when Pakistan went nuclear. It is not 
known whether a grace period has also been sought for servicing of 
debts from the institutions.
"I had requested IFC to allow us to delay debt servicing up to 
February 28 but they just kept silent, I only presume that they 
would accept the request," said chief executive of one of those 
four Modarabas that availed of IFC loan.
He said the other three had made similar requests to IFC but they 
too, got no formal response.
Four leading Modarabas had raised $40 million worth of foreign debt 
from International Finance Corporation in 1996 through a tailor-
made debt instrument named income notes that confirmed to the 
principles of Islamic banking. The instrument had no clear 
provision for the IFC to charge for any delay in debt servicing.
"But the IFC has some other options, it can cancel the debt or 
recall it altogether or move to international court of law," said 
the head of one of the four Modoarbas. But he was confident that 
instead of exercising any of these options IFC would rather find a 
softer way out. He said IFC might accept the delay in debt 
servicing because it was caused by the restriction imposed on 
capital outflow "but they might press for some additional payment 
to make up for the loss on blocked funds."
He said since the specially-designed debt instrument through which 
the IFC loan was raised had no specific provision for such a thing 
this would need to be worked out between IFC and the Modarabas that 
had mobilized the loan.
Senior managers say if servicing of IFC loan is not done by 
February 28 it might complicate the issue. They say the nuclear 
blasts had already marred the possibility of mobilizing additional 
loans from IFC. Managers say before it they were expecting some $30 
million worth of more loans from IFC. They say some were also at an 
advanced stage of negotiations with other financial institutions 
for an estimated combined loan of about $25 million but the 
negotiations had to be put off.
The State Bank has relaxed restrictions on capital outflows in mid 
January and corporate debt servicing began accordingly but it is 
not clear as yet when debt servicing by Modarabas would start.
There are 49 Modarabas in Pakistan with a listed capital of about 
Rs8.3 billion as on November 30 1998. None of them are in a 
position to raise foreign loans because of the financial crisis in 
the country that has made foreign investors and international 
lending institutions a bit more cautious in making investment here. 
"If we are able to service IFC debt by February 28 it will send a 
good signal to the international financial market and help us in 
raising fresh loans," said chairman of Pakistan Modarabas 
Association A. W. Rahi. Talking to Dawn on telephone he said 
further delay in this respect would worsen funding problems of 

IMF seeks report from MoF, CBR
Ikram Hoti

ISLAMABAD, Feb 9: The IMF has sought detailed report from the 
ministry of finance and Central Board of Revenue as to why they 
failed to eliminate some of provincial and local taxes as agreed.
An IMF technical appraisal mission currently visiting Pakistan has 
reminded Islamabad that the agenda for withdrawal of some of 
provincial and local taxes, besides reducing rates of the others, 
with the retrospective effect (June 1998), was part of the 
agreement to allow 2.5 per cent increase in the sales tax, from 
January 1999.
They have also reminded the FM and CBR officials that the increase 
in the sales tax rate from 12.5 per cent to 15 per cent was allowed 
in lieu of the revenue loss thus occurring.
The Fund team referred to IMF/World Bank joint study in 1997-98 of 
provincial and local tax structures. This study resulted in 
suggesting to IMF/WB that the practice of issuing dictation by the 
federal to the provincial authorities to share the tax burden had 
to be done away with.
As revealed to Dawn, IMF/WB and Islamabad had agreed that the 
revenue collection mechanism in provinces was antiquated and 
incapable for generating sufficient funds.
This led to the proposal of doing away with some of the 
provincially collectible taxes and the advice to raise sales tax 
from 12.5 to 15 per cent. However, the Fund team pointed out, 
neither had the federal government sufficiently convinced the 
provincial governments to withdraw theses taxes plus reduce rates 
of many of them, nor did it perform with the best of its capacities 
to raise revenues through the ST rate increase.
The team, during the course of two marathon sessions with the CBR 
officials, on Saturday last and on Monday, also appraised the 
performance on the implementation of Retail Tax, registration of 
"The team took note of the fact that the CBR has, over the past 
seven months of the current financial year, made little headway in 
imposition of the Retail Tax", said a CBR official.
He added that the team members also did not accept as valid the 
method applied for recording facts and figures on retail tax. "They 
are not satisfied with the number of registered persons and the 
revenue deposits and have pointed out that RT assessees as shown by 
CBR, mostly include the state sector retail outlets like those of 
Utility Stores Corporation, all outlets of multinational 
distributors like Bata etc as individual retailers. The Fund team 
has also asked the CBR to explain why did it have to deviate from 
the mutually agreed procedure of recording RT-payers in numbers and 
on the basis of deposits.
A questionnaire has been furnished by the team to the ministry of 
finance, and all the tax wings (ST, IT, Customs, CED) to explain 
causes for failure in a number of receipts/expenditure changes 
agreed to be implemented as part of the 1998-99 budget, under the 
previously concluded Pak-IMF package for ESAF, and the Jan 14 
package for EFF/ESAF.
The portion of questionnaire relating to sales tax, particularly in 
terms of creating paraphernalia for evolving a VAT mode, is based 
on queries made with regard to performance over the first seven 
months of 1998-99 fiscal year.
The basic aim of the team's visit is said to be scrutiny of the 
ledgers on performance over the two quarters of July-December 1998, 
and valuation  of technical assistance demands in this respect. The 
assessee-audit system and procedural aspects are also being 
reviewed for exploring possibilities of expanded Fund assistance, 
said officials who met the team members.

25pc duty on import of soyabean meal imposed
Bureau Report

ISLAMABAD, Feb 9: The Economic Coordination Committee of the 
Cabinet (ECC) decided on Tuesday to impose 25 per cent regulatory 
duty on the import of soyabean oil in addition to the existing 10 
per cent customs duty.
The ECC meeting, chaired by Finance Minister Ishaq Dar, also 
increased the central excise duty on cigarettes. It decided that 
the the CED on a packet of cigarettes with retail price upto Rs3.71 
would be increased from Rs 1.39 to Rs 1.58.
The meeting also revised the support prices of non-traditional 
oilseeds in order to encourage the farmers to grow more and to 
ensure a  minimum return on this crop.
The new prices are as under:-
(Prices in rupees per 40kg)
             Old         New
            Prices      prices
Sun Flower   450         500
Canola       450         500
Soybean      345         410
Safflower    300         350

The ECC meeting, after reviewing the wheat stock situation, said 
that there was no shortage of the commodity in the country. But it 
allowed the import of 200,000 tons of wheat to maintain a higher 
stock level. The meeting was informed that wheat so imported would 
arrive in Pakistan shortly. The meeting directed that 
transportation of wheat within the country should be done through 
Railways and the National Logistic Cell (NLC).

It was, however, strange that why the government decided to import 
200,000 tons of wheat when it has had already sufficient stock.
Informed sources said that the decision was taken after the US 
government regretted to provide more than 300,000 tons of wheat in 
near future. The commodity assistance which was to be given by the 
US under an agreement on the repayment of F-16s money, is now 
expected to be offered after some time which reportedly forced the 
ECC today to import 200,000 tons of wheat to cover up the expected 
The ECC also reviewed the prices and availability of essential 
items and noted that the prices of kitchen items indicated a 
downward trend. Out of 47 kitchen items, the prices of 33 items 
either declined or remained unchanged and the items index as a 
whole decreased by 0.31 per cet during the week ending on January 
The meeting was attended by the Minister for Water and Power, BOI 
chairman, concerned secretaries and other senior officials.

Stocks gain on revival of strong speculative support
Our Staff Reporter

KARACHI, Feb 12: Stocks finished the weekend session on an improved 
note as the strength of leading base shares spilledover to other 
counters aided largely by the revival of strong selective support.
The KSE 100-share index rose 13.11 points or 1.52 per cent at 
874.90 as compared to 861.79 a day earlier, lifting the market 
capitalization by Rs 3 billion to Rs 250.250 billion.
"The market on Thursday overreacted to news of lifting of curbs on 
foreign remittances but investors were back in the rings under the 
lead of foreign investors after having a long-term view of the 
central bank move, reflecting improvement in the forex reserves," 
Faisal Abbas of AHRA said.
"The removal of curbs on repatriation of dividend incomes and 
capital gains is a strong confidence building measure viewed in the 
backdrop of broader perspective," stock analyst Zubair Ellahi at 
Kausar Abbas Bhayani said.
Although the repatriation of profits will be allowed by the central 
bank after a strict scrutiny and on case-to-case basis, foreign 
funds are least worried over the checking mechanism as there is 
nothing wrong with custodian banks statements, analysts at the KASB 
& Co said.
But what seems to have further reinforced investors confidence in 
the share business was said to be a productive meeting between the 
KSE delegation and the finance minister Ishaq Dar on the issue of 
proposed Rs 10 billion market support fund, they added.
"The finance minister did not commit any amount for the fund but 
assured the KSE delegation that foreign investors will be back as 
the government is taking some more confidence-building steps," KSE 
sources said.
Floor brokers said the recovery process initiated after the lifting 
of official curbs on repatriation of profits is going to play a 
decisive role as it could lure back local genuine investors again.
"The perception that IPP issue will also be solved after lifting of 
curbs on repatriation of profits was said to be another supporting 
bullish factor," they added.
The KSE 100-share index early in the session was down by 14 points 
as some of the brokers tried to cash in on the lower profits of 
PTCL and Hub-Power, but the afternoon session brought them back in 
the rings covering positions at the early fall.
The market advance was led by the chemical sector under the lead of 
Fauji Fertilizer, Engro Chemical and Dawood Hercules, which posted 
sharp gains ranging from Rs 2.05 to Rs 8.90 amid active trading. 
There were were also rumours of hostile takeover bid in Engro 
Chemical after grabbing of its floating stock.
Energy shares though rose fractionally were quoted higher in unison 
on hopes of resolution of the tariff issue after news that the out-
of- court talks have started between the management of Hubco and 
the Ministry of Water and Power.
Big gainers were led by KASB & CO, PSO, Telecard, Shell Pakistan, 
Lever Brothers and CPC Rafhan Maize, which posted gains ranging 
from Rs 1.55 to Rs 15.00.
Losses on the other hand were mostly fractional and reflected lack 
of support rather than large selling from any quarter.
Trading volume was maintained on the higher side thanks to active 
buying in most of the current favourites at 78 million shares as 
compared to 90 million shares a day earlier. Plus signs dominated 
the list at 53 to 34, with 34 shares holding on to the last levels.
PTCL again led the list of most actives, off 65 paisa at Rs 16.70 
on 28 million shares, followed by Hub-Power, easy five paisa at Rs 
11.20 on 18 million shares, PSO, higher by Rs 2.45 at Rs 60.25 on 8 
million shares, Fauji Fertilizer, up Rs 2.05 at Rs 43.70 on 8 
million shares, Engro Chemical, sharply higher by Rs 8.05 at Rs 
85.50 on 6 million shares, and ICI Pakistan, easy five paisa at Rs 
8.25 on 2.5 million shares.
Other actively traded shares were led by KESC, up 10 paisa on 0.944 
million shares, Bank of Punjab, higher 95 paisa on 0.440 million 
shares, Askari Bank, firm 40 paisa on 0.368 million shares, Indus 
Motors, up 60 paisa on 0.322 million shares, and Adamjee Insurance, 
up 75 paisa on 0.508 million shares.
DIVIDEND: Askari Commercial Bank, cash 20 per cent on aftertax 
profit of Rs 359.134 million, Gilletter Pakistan, nil on posttax 
profit of Rs 35.603 million for the year ended December 31, 1998.
DEFAULTING COMPANIES: Suzuki Motorcycle was the only share which 
came in for selling ending lower by 50 paisa on 5,000 shares.
BOARD MEETINGS: IBL Modaraba and Towellers, Feb 15, Pakistan 
Oilfields, Feb 16, Crescent Modaraba, Shabbir Tiles and Buxly 
Paints, Feb 18.

Back to the top
Has the press failed us?
Ardeshir Cowasjee

THE general handpicked by Prime Minister Zulfikar Ali Bhutto as his 
army chief, sixth down the line, the servile Zia-ul-Haq, took over 
the country in the early hours of July 5, 1977. Without one shot 
being fired, Bhutto and his cronies were taken into custody.
Six months earlier, Brigadier Tafazzul Siddiqui had been appointed 
the army's ears and mouth, as Director of Inter-Services Public 
Relations. Through his network he had learnt how Bhutto had 
oppressed the people, dealt with the judiciary, with the press, and 
with everything that stood between him and his dictatorial designs. 
He prevailed upon Zia to order that Bhutto's misdeeds be documented 
in the hope that it may deter the bringing to power again of a man 
such as he.
Zia agreed and I.H.Burney, editor of that good weekly publication 
'Outlook' (closed down by Bhutto), was selected to do the job. He 
undertook the onerous task of sifting through the records and 
archives, which Bhutto had not had the time to burn, without 
charging for his time and effort, and produced several volumes of 
'white papers' which were distributed to the press and are 
available in the various press libraries and in the libraries of 
those who follow the history of this country.
In Bhutto's days, Jang and owner/editor Mir Khalilur Rahman were 
the good boys of the Urdu press which in this country was and is 
the section of the press which really matters. The bad boys were 
Nawa-i-Waqt and owner/editor Majid Nizami. Today, the roles have 
been reversed. But, with the passage of time Nawa-i-Waqt will 
suffer, as will we all.
Bhutto had the knack of seeking out and surrounding himself with 
evil men, some of whom still survive and now raise their heads as 
champions of democracy and human rights. Certain excerpts from the 
'white papers', highly relevant to what is now happening a quarter 
of a century later, will show why perhaps the press has failed us 
as so little has changed.
"We have been taken for a long ride by Nawa-i-Waqt ..... This 
newspaper has done our government the greatest damage and yet it 
gets the maximum advertisements from the Government, both 
provincial and federal, the Board of Industrial Management, banks 
and the whole lot. What is the logic behind this brutal 
discrimination? What explanation can we offer to daily Jang and 
other important dailies who cooperate with us and are denied the 
same privileges? If we can deal with 'Jasarat', 'Outlook' and some 
others, why is it not possible to deal with Nawa-i-Waqt? Who is 
protecting this arsenal of the opposition? (February 3, 1976, 
Bhutto to Information Minister Hanif Khan).
"Bhutto tightens the screws : More than three dozen publications 
have been banned since early 1972, at least ten editors have been 
jailed and many others penalised for criticism of the government. 
Last month the administration silenced S.R. Ghauri, Pakistan's most 
prominent columnist and political commentator.

"Ghauri had written 'Let us admit that basically we are going 
through an excruciating spiritual crisis. While an economically 
depressed country is burning at both ends, spiritually and morally, 
the political scene is simply chaotic. There is a great need to 
understand that you cannot hide the truth under a bush. People 
deliberately kept in the dark nevertheless have their own 
grapevines [ and now the Internet ] so, media or no media, one day 
they will know; and when they know, without being supposed to know, 
you have a powder-keg'." (Far Eastern Economic Review, March 
"Stop all government advertising being given to the paper with 
immediate effect. Start an enquiry into the income tax returns of 
the editor Mr Majid Nizami. Ask the government of the Punjab to 
make an enquiry into the property acquired by the 
editor/publisher." (Information minister to the prime minister, 
April 26,1976. The PM approved the action the same day and directed 
that it should be implemented 'fully and strictly.')
"I have already exhausted my resources of gentlemanly approach to 
persuade Mr Majid Nizami to see reason in national interest. After 
the stoppage of all government and semi-government advertisements 
to Nawa-i-Waqt for which this newspaper pilloried the government 
and the information ministry, I have stopped the newsprint supply 
to the Nawa-i-Waqt from government stocks. Firm advice has also 
been given to the advertising agencies not to be liberal in issuing 
private sector advertisements to Mr Majid Nizami's newspapers 
....... I have also requested the minister for finance, Rana 
Mohammad Hanif, to instruct the concerned officials to expedite the 
action in respect of the income tax liabilities of the Nawa-i-Waqt 
group and the Nizami family." (Information Minister Hanif Khan to 
Prime Minister July 2,1976. Bhutto remarked on this note that it 
was most necessary to expedite action regarding income tax 
Wily Zia, powerful and backed by his guns and tanks, was not unduly 
worried about the press. He deftly toyed with the press lords. He 
allowed all to make money. Come 1985 and Mohammad Khan Junejo, his 
handpicked prime minister, and the press was freed to a large 
extent and has remained free. Concurrent with the freedom, many 
press lords have acquired extensive properties and assets and have 
famously prospered. The various governments that have come and gone 
have allowed most of them to sell in the market newsprint given to 
them at concessional rates. The larger the fudged government audit 
bureau's circulation figures, the greater the profit. Nelson's eye 
was allowed to scrutinize their tax returns.
One other way in which perhaps the press has failed us. It has 
never protested with sufficient vehemence, or with solidarity, so 
as to prevail upon any ruler not to make a false or damaging move, 
not to undermine the morale of the country, not to decrease the 
meagre democracy accorded to us. Most importantly, it failed 
utterly to prevent the enfeebling of the judiciary. What opposition 
was there from our press to the appointment of Rafiq Ahmad Tarar as 
president of the republic when they were fully aware of his 1997 
Quetta shuffle? How bothered are they about those who instigated 
the raiding of the Supreme Court in November 1997 and those 
physically present at the raid who remain unpunished?
Now, the Jang Group, in deep trouble, is appealing to the same 
judiciary for protection. The Supreme Court order that 200 reels of 
newsprint be released to the Group was simply flouted by the 
government. What suo moto action did the court take against those 
who consider its orders only fit for the WPB?
Nawaz Sharif has good reason to feel that he is all-powerful. He 
has rendered the presidency, the judiciary and the armed forces 
ineffective and passive. The press, he now feels, he can eat up for 
breakfast. For starters, he has unleashed his government's coercive 
forces against the Jang, Lady Maleeha Lodhi, and others.
Jang has built itself into a huge business conglomerate and now the 
owner, Shakilur Rahman, son of Khalilur Rahman, and his seven 
entities, i.e. Independent Newspapers Corporation (Pvt) Ltd, The 
News Publications (Pvt) Ltd, Jang Publications Ltd, Jang Ltd, J & S 
Enterprises (Pvt) Ltd, Combined Investment (Pvt) Ltd, and Jang 
Enterprises Ltd, have filed a petition in the Supreme Court seeking 
redress on 15 counts, inter alia, protection against victimization, 
withholding of government advertisements, prevention of raids on 
the Jang offices, the quashment of all mala fide tax notices, the 
confiscation of newsprint. Despite the reality, one must hope that 
they are given relief.
It is high time the members of the press forget their differences. 
Jang has been singled out and is being victimized. If this 
continues, the press of Pakistan must unite and lodge a silent but 
strong protest by organizing themselves and seeing to it that not 
one single publication is published on one chosen day. 

The leadership vacuum
Irfan Husain

AS more and more traditionally civilian functions are handed over 
to the army, it is relevant to ask when and where this process will 
stop. More to the point, if civilians are incompetent to handle 
administrative and judicial responsibilities, then how long before 
the power to make laws moves from Parliament to GHQ?
I don't think anybody today can question the precipitous decline in 
the efficiency, discipline and integrity of every civilian 
department in Pakistan. From provincial highway departments to the 
federal secretariat, we have a huge army of underpaid, mostly 
under-worked and dispirited government functionaries. Virtually 
every one of them is convinced of the futility of whatever he or 
she is charged with doing, and almost all of them are thoroughly 
demoralized and unmotivated.
Far from trying to solve these problems faced by their 
subordinates, political ministers are themselves part of the 
problem. By constantly browbeating their underlings and using them 

for their own monetary or political advantage, they add to the 
insecurity and feeling of resentment that already exist in our 
bureaucracy. By contrast, the army has managed to largely deflect 
political interference, and partly as a result, is a far more 
disciplined and highly motivated organization. Indeed, apart from 
the private sector, this is the most efficient body of men in the 
Having said this, it is important to clearly spell out the duties 
and responsibilities of our men in uniform. While Article 245 of 
the Constitution does provide for the army to come to the aid of 
the government, the authors of that much-abused document clearly 
did not envisage that the defence forces would be called out to 
conduct the census, take meter readings and weed out ghost schools. 
Apart from the question of taking soldiers away from their normal 
tasks, this nibbling away at purely civilian responsibilities and 
functions further demoralizes the bureaucracy.
Clearly, the answer does not lie in imposing this piecemeal 
military rule; rather, politicians need to address the wider issue 
of governance and improving the efficiency of the civil 
bureaucracy. Inducting the army into more and more departments 
provides at best a temporary solution to a major problem, not 
unlike applying a bit of plaster on a haemorrhaging wound. 
Unfortuna-tely, our politicians have a limited attention span, and 
tend to think in the short term. For them, the hard and demanding 
tasks of improving the judiciary and the executive are too long 
term to focus on. So they seize on the nearest (and only) available 
tool to fix the problem.
Unfortunately for us, the list of problems that beset us is 
constantly growing, as is the bureaucracy's inability to tackle 
them. Thus, if the road network in Karachi's Defence Society has to 
be repaired, the Frontier Works Organization (FWO) is given the 
contract. Incidentally, they did a very good job, unlike most of 
our private sector contractors. When the Punjab chief minister 
wanted to crack down on ghost schools that exist only on paper and 
salaries are paid to non-existent teachers, he called on the army. 
The census, long delayed because of endless controversies, was 
finally conducted by the armed services after a seven-year delay.
But it is the establishment of military courts in Sindh that has 
set alarm bells ringing in judicial and political circles. This is 
a clear vote of no-confidence in our judicial system. Those who 
have suffered from the endless delays in our courts as well as from 
the skewed judgments that are often handed down can be excused for 
having a jaundiced view of our legal system. Clearly, there is no 
easy answer: while it is facile to reiterate the supremacy and 
independence of our judiciary, even a casual observer can pinpoint 
the many grievous flaws in the system. So what is a government 
seeking to restore law and order in Pakistan's most troubled 
province supposed to do?
Given our courts' tendency to grant bail to criminals accused of 
the most vicious offences, the frustration of the administration is 
understandable. Even the average resident of Karachi wants to see 
swift action taken against alleged terrorists. But by sidelining 
the judiciary, we are ensuring that this pillar of the state loses 
whatever respect it had left among the public. Surely what is 
required is a complete overhaul of the system because without an 
honest and effective judiciary, a civilized society is untenable. 
But this brings us back to square one. Where do we start, and is a 
piecemeal solution to our many problems possible?
Clearly, trying to fix things in isolation is not workable. In a 
society bogged down in corruption, illiteracy and superstitution, 
trying to make one sector work without paying attention to the 
whole is like trying to plug one leak at a time in a sinking ship. 
In our case, we are calling out the troops to address the most 
mundane task as one institution collapses after another. How long 
can the army stay immune from the general contagion if we continue 
exposing it to the temptation of bribery?
One thing is clear, and that is the importance of our leaders 
setting an example. This is no panacea, but it is a start. 
Unfortunately, virtually from Pakistan's earliest days, we have 
experienced a steady decline in the quality of leadership. This 
crisis has reached the point where our leaders are a major part of 
the problem, and can hardly be expected to provide the solution. 
Nevertheless, given the fact that we have a de facto two-party 
system in operation, we have no option but to look to Nawaz Sharif 
and Benazir Bhutto to set the tone. I know this is expecting a bit 
too much, but who else can we turn to in such a deeply polarized 
Alas, the example set thus far by both leaders is not one we would 
like our children to follow. Neither believes in paying any taxes, 
and yet never tire of lecturing us on the need to pay ours. Both 
have indulged in highly questionable deals and the flagrant misuse 
of power. But as long as they are the only contenders for power, we 
have no choice but to expect them to mend their ways and provide 
honest and capable leadership. The choice before us is clear: 
either politicians clean up their act and redeem themselves, and 
thus rescue the system and establish the supremacy of civil 
society, or we succumb to the creeping martial law that is being 
inducted by a civilian government rather than being imposed by 
uniformed adventurers.

Pakistan welcome neutral umpires for Asian Tests

NEW DELHI, Feb 11: Pakistan, done in by Anil Kumble and 
controversial umpiring in last week's Test match against India, 
were on Thursday relieved to find neutral umpires nominated for the 
upcoming Asian Test championships.

"Having two neutral umpires will do away with allegations of bias," 
Pakistani captain Wasim Akram said. "Nothing much will be read into 
genuine umpiring errors.
"It's a positive move and should be enforced for all Test matches," 
he said.
Indian umpire A.V. Jayaprakash was ridiculed by Indian and 
Pakistani critics for three dubious decisions during leg-spinner 
Kumble's sensational 10-wicket haul in Pakistan's second innings of 
the New Delhi Test.
The win enabled India to square the two-Test series, Pakistan's 
first on Indian soil in 12 years.
West Indian Steve Bucknor and Rudi Koertzen of South Africa will 
stand in the opening match of the championship between India and 
Pakistan at the Eden Gardens in Calcutta from Feb 16.
Sri Lanka are the third team in the first ever multi-nation 
tournament involving the Test match format. Each team will play the 
other once in the league with the top two meeting in the final at 
Dhaka from March 12.
The finalists will be determined through points awarded for 
outright wins and batting and bowling bonuses in the first 100 overs of the
first innings.
Twelve points will be awarded for an outright win.
A three-member technical committee for the championships, 
comprising former Test stars Sunil Gavaskar (India), Majid Khan 
(Pakistan) and Ranjith Fernando (Sri Lanka) decided the bonus 
points system as follows:
Batting points (first 100 overs of first innings only):
150-224 runs  1 point; 225-299 runs  2 points; 300-349  3 
points; 350 and over  four points.
Bowling points (first 100 overs of first innings only):
3-4 wickets  1 point; 5-6 wickets  2 points; 7-8 wickets  3 
points; 9-10 wickets  4 points.
The top two teams in the points table will advance to the final. In 
case of a tie on points, the team with a superior batting run-rate 
in the first 100 overs of the first innings will make the final.
If the final is drawn and the first innings of both teams have been 
completed, the team which accumulates higher bonus points will be 
declared the winner.
There is also a provision to switch on the floodlights to complete 
90 overs in a day in case of bad light.
Championship schedule:
Feb 16-20: India v Pakistan in Calcutta
Feb 24-28: India v Sri Lanka in Colombo
March 4-8: Pakistan v Sri Lanka in Lahore
March 12-16: Final in Dhaka.AFP

Kumble bags 10 wickets, as India level series

NEW DELHI, Feb 7: Leg-spinner Anil Kumble of India grabbed all ten 
wickets to equal a 43 year-old record and guide India to a 212-run 
victory against Pakistan in the second Test on the fourth of the 
five-day match at Ferozeshah Kotla ground here today.
Kumble became the second man in history to snatch all the ten 
wickets in an innings. Jim Laker of England had performed that feat 
at Old Trafford in Manchester against Australia in 1956.
Meanwhile, Pakistan lost the match after the team collapsed in the 
second innings for 207. It needed a score of 420. The start of the 

second innings by Saeed Anwar and Shahid Afridi gave some glimmer 
of hope for Pakistan as they scored 90 runs before lunch. Soon on 
return after lunch break and before tea, six wickets had fallen for 
83 runs, dashing all hopes of the tourists for a tough fight back. 
The remaining four wickets added only 34 runs to Pakistan's total 
of 207.

India beat Pakistan 3-0 in 4th hockey Test
Samiul Hasan

NEW DELHI (India), Feb 10: India earned some consolation in the 
first leg of the nine-match hockey series when they defeated 
Pakistan 3-0 in the fourth hockey Test at the Mayor Radhakrishnan 
Stadium in Chennai on Wednesday.
The Asian champions, who convincingly lost the New Delhi, Bhopal 
and Hyderabad Tests, led 2-0 at the lemon time.
With Pakistan leading 3-1 in the series, both the teams resume the 
second leg of the rubber at Lahore where the fifth match will be 
played on Feb 16. The follwoing four matches will be played at 
Karachi, Peshawar, Rawalpindi and Lahore.
India put up a much improved performance in the fourth Test after 
being reduced to spectators in the first three games. And it took 
them to perform at their happy hunting centre where they had 
defeated their arch-rivals in the 1995 SAF Games final in only 
their other clash here.
The forward line combined well while the half-line fed their 
forward well who kept the Pakistan defenders on the toes for the 
entire 70-minute proceedings. Ahmad Alam did a good job under the 
bar despite being beaten thrice  twice by Rajesh Chauhan and once 
by Baljit Singh Dhillon.
The magic of Sohail Abbas didn't work on Wednesday after he scored 
five goals in the previous three matches. In fact, Abbas had not 
scored in the last seven penalty corners at Hyderabad while today 
he tried to find the net four times but failed.
Pakistan's speedy and dangerous forwards Atif Bashir and Mohammad 
Sarwar were marked tightly by the Indians who didn't allow free 
runs to the two. The tourists also rested Wasim Ahmad and Naveed 
India banged their first goal when the spectators had hardly found 
their seats when Baljit Singh Dhillon dodged past the Pakistan 
defence to pass the ball to Rajesh Chauhan on the left who slotted 
in the third minute.
In the 18th minute, Dhillon converted a penalty corner with the 
carpet shot to double the lead.
The home team completed the taly when S.S Gill and Dhillon playing 
in tandem, dribbled their way past the defence and later crossed to 
Chauhan who scored in the 53rd minute.

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