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DAWN WIRE SERVICE
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Week Ending : 13 February 1999 Issue : 05/07
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Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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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
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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
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EDITORIALS & FEATURES
+ Has the press failed us? Ardeshir Cowasjee
+ The leadership vacuum Irfan Husain
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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
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NATIONAL NEWS
990213
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Accused not given equal protection of law: CJ
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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
judiciary.
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
defaulters.
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
Constitution.
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.
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990212
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Federal Cabinet lifts ban on jobs
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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
meeting.
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.
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990212
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Nawaz-Vajpayee agenda includes Kashmir, N-issue
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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
goodwill.
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.
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990211
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Nawaz discusses Kashmir issue with Clinton
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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
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990211
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Ehtesab bureau to have its own investigators
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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.
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990212
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Govt plans to arrest corrupt leaders
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Reporter
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
authority".
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
funds.
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.
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990210
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Nawaz meets Abdullah: Pakistan and Jordan agree to boost ties
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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
Palace.
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
opportunity.
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
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990208
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Benazir tells Tarar of govt's corruption
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Correspondent
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
WAPDA.
"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
same.
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990209
-------------------------------------------------------------------
2001 to be declared 'Visit Pakistan Year'
-------------------------------------------------------------------
Correspondent
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
Pakistan.
The minister said that the youth conference would be convened on
March 15 in Islamabad.
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990209
-------------------------------------------------------------------
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
courts.
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
courts.
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.
===================================================================
BUSINESS & ECONOMY
990213
-------------------------------------------------------------------
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
said.
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
tax.
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990212
-------------------------------------------------------------------
Trade deficit shrinks by 45.76pc in July-Jan
-------------------------------------------------------------------
Correspondent
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
imports.
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
6.03%.
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
33.93%.
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%
respectively.
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990212
-------------------------------------------------------------------
Tariff cut plan drawn up for WCO meeting
-------------------------------------------------------------------
Correspondent
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.
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990212
-------------------------------------------------------------------
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
cooperation".
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990212
-------------------------------------------------------------------
40 banks to fund small, medium enterprises
-------------------------------------------------------------------
Reporter
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.
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990211
-------------------------------------------------------------------
$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
problem.
"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.
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990210
-------------------------------------------------------------------
$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
Modarabas.
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990210
-------------------------------------------------------------------
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
manufacturers/importers/dealers/wholesalers.
"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.
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990210
-------------------------------------------------------------------
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
shortfall.
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
30.
The meeting was attended by the Minister for Water and Power, BOI
chairman, concerned secretaries and other senior officials.
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990213
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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
===================================================================
EDITORIALS & FEATURES
990207
-------------------------------------------------------------------
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
19,1976)
"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
liabilities.)
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.
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990213
-------------------------------------------------------------------
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
country.
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
society?
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.
===================================================================
SPORTS
990212
-------------------------------------------------------------------
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
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990208
-------------------------------------------------------------------
Kumble bags 10 wickets, as India level series
-------------------------------------------------------------------
Representative
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.
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990211
-------------------------------------------------------------------
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
Asim.
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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