------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 13 March 1999 Issue : 05/11 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS --------------------------------- + Pakistan not helping Korea in Nuclear field: FO + Power sale to India: Govt facing internal differences + Pakistan bans export of mines + Pakistan criticises US on human rights report + COAS lauds army role in WAPDA + Sartaj for level playing field to raise trade with India + Storming of SC building: Legislators plead not guilty + 461,000 acres of land given to peasants, says PM + Members of all Fiqhs entitled to exemption + Kahuta labs can launch a satellite into orbit: Qadeer + IDB to grant $140m loan to Pakistan --------------------------------- BUSINESS & ECONOMY + UK asks Pakistan to resolve IPPs issue + Pakistan lucky in dealing with crisis, WB official + Larger decline averted on stock market + Exports of manufactured goods fall 14% + Forex transactions: SBP to adopt new reporting pattern + Coins continue to push rupee-notes out of circulation + US imposes yarn quota on Pakistan + Direct tax collection rises by Rs2.6bn + 'Show case projects': IMF to ask Islamabad to cut expenses + Meeting with London Club deferred: Dar --------------------------------------- EDITORIALS & FEATURES + The World Bank at Seoul Ardeshir Cowasjee + Lights out Irfan Husain ----------- SPORTS + Wasim, Miandad dismiss charges of match-fixing + Third Pakistani hits century in both innings + Azlan Shah Hockey: Zaka rates South Korea as a tough team

Pakistan not helping Korea in Nuclear field: FO
Bureau Report

ISLAMABAD, March 12: Foreign Office on Friday described the reports 
that Pakistan is helping North Korea to set up a uranium enrichment 
capability as false.
In a press statement a spokesman of the Foreign Office said the 
report appearing in Washington Post that Pakistan is helping North 
Korea to set up uranium enrichment facility was "false and 
The spokesman reaffirmed Pakistan's long term and abiding policy 
not to transfer sensitive nuclear technology to any country.
The policy commitment has been maintained by Pakistan unilaterally 
since the early 80s when it was able to develop nuclear capability. 
On this score, Pakistan has all along acted with the highest sense 
of responsibility and its record has been impeccable, he said.
The Foreign Office spokesman stated that the purpose of the 
speculative report was none other than to malign Pakistan and 
create unfounded misgivings and concerns about Pakistan's nuclear 
programme. He categorically denied any cooperation, whatsoever, 
between Pakistan and North Korea in the nuclear area.
Following the nuclear tests, Pakistan is engaged in an intensive 
dialogue with the United States as well as other major powers on 
nuclear related issues including measures for tightening export 
controls. Consistent with its unilateral commitment, Pakistan has 
given assurances to take all necessary measures to ensure against 
transfer of sensitive nuclear technology to any country, the 
spokesman added.

Power sale to India: Govt facing internal differences
Bureau Report

ISLAMABAD, March 8: The government is internally facing differences 
on the issue of tariff rate to be finally demanded from India for 
the sale of electricity.
"The idea to sell power to India may fizzle out in case these 
differences are not removed," a reliable source told Dawn here on 
Monday, adding that the date for the next round of talks between 

New Delhi and Islamabad had not yet finalized by Pakistan because 
of the same reason.
The source said that the differences had cropped up between the 
ministry of water and power and Wapda management on the fixation of 
tariff rate to be finally charged from India in case the deal was 
struck between the two neighbouring countries.
The Wapda management, the source said, was extending very marginal 
concession to its demand of selling electricity to India at the 
rate of 9 cents per unit. India, during its last round of talks 
with Pakistani authorities, had offered to buy power from Pakistan 
at the rate of a little over 2 cents per unit.
The ministry of water and power wants to rationalize the tariff 
rates to be finally offered to India because in the present 
situation there was a big gap between the electricity prices 
demanded by Pakistan and offered by India.
The source said that in case Pakistan did not show any flexibility 
there would be no deal because India would never be ready to buy 
electricity at the rate of even 7 cents per unit. The perception of 
the ministry officials is that the sale of surplus electricity 
irrespective of the fact what was the tariff rate, would be a 
profit to the Government of Pakistan because otherwise it would go 
The effective control on power theft by the Wapda management, has 
rendered 2500 MW electricity as surplus.

Pakistan bans export of mines
Bureau Report

ISLAMABAD, March 11: Pakistan has immediately imposed ban on the 
export of anti-personnel mines (APMs) to meet an international 
A statutory regulatory order (SRO) has been issued by the commerce 
division to amend the Export Policy Order, 1998. A new entry, 
inserted after serial No 7 of the above order, has given effect to 
this ban.
"By imposing this ban Pakistan has fulfilled its international 
commitment," a source said, adding that Islamabad had unilaterally 
announced to support the international campaign against anti-
personnel mines.
Despite its disciplined and responsible behaviour in the use of 
mines Pakistan has been consistently urged from the West to abandon 
using the mines and there export.
Government sources said that Pakistan was no stranger to the after-
effects of mines where extensive UN programmes continued in 
Peshawar and elsewhere to train those returning to Afghanistan.
"We have always responded towards all our international commitments 
very maturely and will continue behaving like a responsible state," 
a source in the foreign ministry said.
There are an estimated 70 to 100 million active mines in about 70 
poor countries such as Cambodia, Mozambique, Angola, Sudan, 
Nicaragua and Afghanistan.
Pakistan is the signatory of a UN convention signed in this regard 
a couple of years back.
Although Islamabad had not signed the Ottawa Treaty on the subject, 
it had taken a unilateral decision to stop export of landmines. The 
treaty, first adopted in Ottawa, in Dec, 1997 after a major 
diplomatic initiative by Canada, now has more than 130 signatories, 
while 65 nations have so far ratified it.
On Feb 28, 1999 the treaty entered into force as the signatory 
states formally adopted the document at the UN, forbidding the use, 
stockpiling, production and transfer of anti-personnel mines.
Three super powers - United States, China and Russia - who are key 
producers of the deadly weapons which kill or maim someone every 20 
minutes, have not backed the treaty. However, supporting states had 
asked to put an end to the suffering caused by these 'cowardly 

Pakistan criticises US on human rights report

ISLAMABAD, March 6: Foreign Office on Saturday lashed out at the 
latest US State Department report on human rights, saying its 
charges of rights violations were inaccurate and exaggerated.

"The report has been compiled mostly from tabloids, hearsay and so-
called 'off the record' conversations," a Foreign Office spokesman 
said in a statement. "It is replete with conjecture, hearsay and 
inaccuracy and exaggeration."
The annual US report on countries around the world accused Pakistan 
of having a poor human rights record, including allowing extra-
judicial killings, infringement of privacy by authorities and 
mistreatment of religious minorities.
The spokesman said Pakistan did have human rights problems due to 
poverty, under-development and illiteracy, but added that developed 
countries such as the United States should help developing 
"We remain responsive to sincere and constructive criticism. But 
those who sit in judgment must not ignore ground realities and 
inherent difficulties, particularly in the developing countries," 
the statement said.
"Despite the difficulties created by poverty and external 
intervention, Pakistan remains a functional and vibrant democracy," 
the statement added.
He said "after all, the US too has many human rights problems. In 
fact, in the context of this year's Commission on Human Rights, 
Amnesty International has named the US as one of the six countries 
of 'principal concern', he pointed out.
The US report, the spokesman said is replete with conjecture, 
factual inaccuracy and exaggeration. "This is particularly evident, 
for example, from the fact that it discounts the authenticity of 
the ILO survey on the incidence of child labour in Pakistan and 
instead cites exaggerated and statistically inaccurate figures 
spread by one externally financed NGO".
He maintained that Pakistan government has a fundamental duty to 
oppose, by all constitutionals mean, any attempt to disrupt 
political and social stability and law and order in Pakistan. 
"Despite the difficulties created by poverty and external 
intervention, Pakistan remains a functional and vibrant democracy," 
he added. Pakistan, he said, has an open society and adequate 
checks and balances exist in its system. He referred to the 
abolition of the military courts in Karachi in line with the 
Supreme Court's verdict.
The spokesman recalled that the government of Pakistan has taken a 
number of steps to further promote and protect human rights 
including the establishment of a Commission on the Status of Women, 
crisis management centres for women and additional women's police 
"We have had considerable success in the campaign to eradicate 
exploitative child labour in cooperation with the ILO and others," 
he said.
BROWNBACK WAIVER: He expressed satisfaction at the reports that the 
US Congress has initiated efforts to extend and expand the 
Brownback waiver.
"This is a step forward, the spokesman said, which would bring a 
positive improvement in the atmosphere and facilitate Pakistan's 
adherence to the CTBT in an atmosphere free of coercion as 
stipulated in the Prime Minister's UN address last year," the 
Foreign Office spokesman said.
The US government eased economic sanctions against Pakistan last 
year under the Brownback amendment.
Washington slapped economic sanctions on Pakistan when it detonated 
nuclear devices in a tit-for-tat response to India's nuclear 

COAS lauds army role in WAPDA
Bureau Report

ISLAMABAD, March 11: Chief of the Army Staff General Pervaiz 
Musharraf on Thursday expressed satisfaction over the army 
operation in WAPDA and said it had resulted in substantial 
improvement in WAPDA's recoveries.
WAPDA's recoveries in the month of February was Rs 3.5 billion more 
than what WAPDA had recovered in the same month last year, he told 
reporters after president's address to the joint sitting of the 
When asked to comment on the cases filed against some members of 
the federal cabinet and ruling party legislators he said, "we are 
doing our job properly." When asked whether the operation in WAPDA 
would continue, he said, "it should continue."
On the recent manoeuvres carried out by Indian air force at Pokhran 
near Pakistan's borders, he said these were "artificial."
Regarding his forthcoming visit to China, he said, the agenda of 
talks had not yet been fixed. On a question about a possible visit 
to Washington, he said, it was not yet finalised.
Asked if India's attitude was not belligerent particularly when 
efforts were on to continue process of political dialogue for 
resolution of outstanding issues, he said "this belligerence is 
confined only to words", adds PPI.
He replied in negative when asked if there was any programme of 
disengagement of troops at Siachen Glacier.
He said both Siachen and Kashmir issues were important for Pakistan 
and could not be separated.
When asked to comment on President Rafiq Tarar's assertion, 
rejecting possibility of any cut it defence budget, he said it was 
"very good."

Sartaj for level playing field to raise trade with India

ISLAMABAD, March 11: Foreign Minister Sartaj Aziz Thursday 
underlined the need for creation of a level playing field between 
Pakistan and India and other South Asian countries to enhance their 
trade and commercial relations.

'A level playing field needs to be created in order to enhance 
trade and commercial relations between the two countries (Pakistan 
and India), as well as within the larger ambit of SAARC,' he said 
in a meeting with a delegation of Federation of Indian Export 
He said India complains that it is not given reciprocal Most 
Favoured Nation (MFN) status by Pakistan. 'But despite this it 
still imports less from us than we do from India.'
Not surprisingly, he said, the balance of trade has been in India's 
favour for the last five years and was to the tune of $64m in 1997-
India, he said, seeks free trade areas with its neighbours but 
maintains non-tariff barriers and qualitative restrictions. 
Moreover, he said, New Delhi insists on restrictive lists that 
include the core trading commodities.
Aziz said both Pakistan and India are developing nations, although 
in different stages of development in different sectors.
In many areas, he said, 'our economies are competitive rather than 
He said larger Indian production capacity seeks additional markets 
whereas the smaller, nascent Pakistani industry needs protection. 
'We have no hesitation in stating clearly that as a smaller 
economy, it is imperative for Pakistan to support and protect its 
nascent industrial base.'
Despite these limitations, the Minister said, there are also 
numerous trade and economic opportunities between the two 
Given the appropriate political environment, he said, Pakistan and 
India can become natural trading partners.
He said there exists great potential for expansion of bilateral 
economic relations in the fields of agriculture, communications, 
industry, trade, services, infrastructure, development etc.-APP

Storming of SC building: Legislators plead not guilty
Bureau Report

ISLAMABAD, March 8: The Muslim League legislators, indicted by the 
Supreme Court on a charge of contempt of court, pleaded not guilty 
on Monday, and requested the bench, headed by Justice Nasir Aslam 
Zahid, not to hear the case.
The charge-sheet was read out to the MPs, including two MNAs and 
four Punjab Assembly MPAs and one PML youth wing activist on Monday 
last. The case was adjourned till April 28, when the bench will 
start hearing on daily basis.
Advocate Sardar Ishaq, counsel for all the seven accused, informed 
the bench that his clients pleaded not guilty. He requested the 
court to provide the material on the basis of which contempt of 
court proceedings against them had been initiated.
The incident had taken place when a Supreme Court bench, headed by 
the then chief justice Sajjad Ali Shah, was proceeding with 
contempt of court case involving Prime Minister Nawaz Sharif and 
seven other legislators.
The Supreme Court bench had indicted Mian Munir, MNA; Tariq Aziz, 
MNA; Akhtar Rasool, MPA; Tanveer Ahmed Khan, MPA; Sardar Nasim, 
MPA; Akhtar Mehmood, MPA; and Shahbaz Goshi, president of the Nawaz 
Sharif Force, on Monday last.
The bench had given the accused one week to think over their 
indictment and then decide whether they would plead guilty or not 
Sardar Ishaq informed the court on Monday that his clients pleaded 
not guilty. He further asked the court not to hear the case as the 
same bench had, after holding a lengthy inquiry , had recommended 
the issuance of show-cause notices to them.
The court asked the counsel to file an application in this regard 
so that it could decide the issue. But he said it would not be 
possible for him to make a written request.
The court observed that if the amended Contempt of Court Ordinance 
which lapsed on Feb 26, was revived, the accused would get a right 
of appeal against the decision of the bench; but even if it was not 
revived, the counsel should have faith in the court that his 
clients would get a fair trial. The court observed that it wanted 
to complete the proceedings as early as possible.
The same bench, after holding a lengthy inquiry, had announced in 
July 1998 that those who had forced their entry into the Supreme 
Court premises on Nov 28,1997, and raised derogatory slogans were, 
prima facie, guilty of contempt of court.
The court had issued show-cause notices to 26 people who were 
indicted last week. The court withdrew the notices issued to 
executive and police officers, with a stern warning they should be 
careful in future. The cases against eight Muslim League workers 
would remain pending till the disposal of a criminal case by the 
lower courts.
The charge framed against all the seven accused on Monday last was 
identical. It said: "You were part of the crowd/people who had 
gathered in and around the Supreme Court of Pakistan Building, 
Islamabad, in the morning of 28.11.1997, and were involved in acts 
of rowdyism including raising slogans and display of banners 
against judiciary with the intention of bringing the authority of 
this Court into disrespect or disrepute/or to lower its authority 
or to disturb the order decorum of the Court, and by your actions 
you have committed contempt of this Court and rendered yourself 
liable to punishment under Article 204 of the Constitution of the 
Islamic Republic of Pakistan read with section 3 and 4 of the 
Contempt of Court Act 1976."

461,000 acres of land given to peasants, says PM

DAHARKI, March 9: Prime Minister Muhammad Nawaz Sharif on Tuesday 
underlined the need to focus attention on agriculture development 
to ensure self-sufficiency in food and development of the country.

Speaking at inauguration ceremony of $ 72 million Engro expansion 
and modernization project, about 650 km away from Karachi, the 
Prime Minister said the government has laid the utmost stress on 
promoting modern means of agriculture.
'Any industrial development that does not cater for a parallel 
attention to agriculture needs will become lop-sided because it has 
a magnificent role in the over all development of the economy'" he 
The Engro's project will increase its annual urea production from 
existing 0.75 million tons to 0.85 million tons.
The Prime Ministry said for agriculture development fertilizer 
plays a vital role. "My presence here today is reflective of my 
keen interest in the expansion of fertilizer industry.'
Nawaz said during two years, the government has given liberal loans 
of more than Rs.40bn to farmers. 'Never before the process for 
granting loans has been made so simple and so easy', he added.
Referring to land distribution policy of his government, he said, 
the PML government distributed 461,000 acres of land among the 
landless 'haris' and peasants throughout the country.
'They were provided with cash loans and tractors', he said adding 
the sole objective is to increase agriculture production.
'This is the only way that we can achieve self-sufficiency in 
food', he observed.
Sharif reiterated his resolve that any industry that contributes to 
the promotion and development of agriculture will continue to 
receive the best attention of the government.
He said Pakistan has achieved the honour of becoming seventh 
nuclear state of the world. 'How can we lag behind in other 
sectors,' he said.-APP

Members of all Fiqhs entitled to exemption
Bureau Report

ISLAMABAD, March 9: The Supreme Court on Tuesday ruled that members 
of all 'Fiqhs' were entitled to exemption from Zakat deduction from 
their holdings, and the government had no power to reject the 
declaration on the ground that he/she did not belong to Fiqh-i-
Upholding the decision of the Sindh High Court, the apex court held 
that the federal government had no authority to declare as invalid 
or reject the declaration filed by any Hanafi Muslim seeking 
exemption from Zakat, if it was in the prescribed form and filed 
within time.
The Supreme Court bench, headed by Chief Justice Ajmal Mian, on 
Tuesday rejected the appeal of the federal government.
The SHC, after a lengthy discussion on the petition of Ms Farzana 
Asar, in its decision in 1990 had come to the conclusion that the 
federal government had no power to declare as invalid the 
declaration filed by any Hanafi Muslim.

The SHC had held that Fiqh-i-Hanafia was recognized Fiqh of Islam 
and its followers were not debarred by any provision of the Zakat 
and Ushr Ordinance.
The SHC had taken exception to the language employed in latter 
dated 21.2.83 to the Central Zakat Administration and had observed 
that it was clearly discriminatory to the four schools of Sunni 
including Hanafi School of Thought as it gave the direction to 
Central Zakat Administration to accept the declarations filed by 
the persons belonging to Fiqh-i-Jafria and the rest should be 
referred to Central Zakat Administrator.
The federal government, represented by Deputy Attorney General 
Yawar Mehmood, argued that the respondent, Ms Farzana Asar, being a 
Muslim citizen of Pakistan, was a follower of Fiqh-i-Hanafia which 
obliged her to pay Zakat on her N.I.T. Units holding. The DAG 
contended that she was not entitled to exemption. It was argued 
that the exemption under the first proviso to Sub-section (3) of 
Section (1) of the Zakat and Ushr Ordinance, 1980 was only 
available to those Muslims whose faith and Fiqha did not oblige 
them to pay Zakat on their holdings in the manner laid down in the 
said ordinance.
The Supreme Court bench which upheld the SHC judgment consisted of 
Chief Justice Ajmal Mian, Justice Shaikh Riaz Ahmad, and Justice 
Mohammad Arif.

Kahuta labs can launch a satellite into orbit: Qadeer
Nizamuddin Siddiqui 

KARACHI, March 8: The Kahuta research laboratories can put a 
satellite of reasonable size into orbit, said Dr Abdul Qadeer Khan 
on Sunday. The capability that his organization had acquired while 
producing the long-range missile Ghauri would help it make a rocket 
capable of launching a satellite in orbit, he said.
"We have already produced the Ghauri missile, which was 
successfully tested last year. Adding another stage to make the 
missile more powerful so that it turns into a rocket which could 
counter Earth's gravitational pull should not be impossible," he 
He told Dawn the Ghauri missile had a separation mechanism with the 
help of which the warhead disengages with the missile at the 
programmed time. "This mechanism will also ensure that the 
satellite and the new rocket detach at precisely the right moment," 
said Dr Khan. He added that SUPARCO was capable of producing a 
satellite while he and his team could put it in the orbit.
In response to a question, Dr Khan said that presently he was 
trying to improve the devices, mechanisms and systems that his 
laboratories had produced in the past. He said that at the moment 
he didn't have any immediate and defined task. 
"But I am always prepared for new tasks and assignments, especially 
challenging ones," he said. "I am confident that we can 
successfully launch a satellite in orbit."
Dr Khan said Pakistan needed its own satellites. "We do need our 
own satellite for information and educational use. We also need a 
satellite for surveillance purposes," he said.
He said he had started taking a lot of interest in educational 
issues. A new institute, called the Dr A.Q. Khan Institute, was 
being built in Mianwali, he added. "The institute will be 
operational by the next year," said Dr Khan.
He informed Dawn that the people of Mianwali had donated a piece of 
land for the institute. "They have also donated Rs10 million for 
the project. The premier also donated Rs20 million. I am trying to 
raise another Rs10 million through family members, their friends 
and other philanthropists," he said.
He said the institute would be producing technicians of repute in 
the disciplines of airconditioning, automobiles, chemical processes 
and welding, etc.
Dr Khan said that he was also going to take keen interest in the 
institute that will be coming up in the premises of Madinat al-
Hikmah, near Hub.  
The foundation-stone of the institute was laid on Saturday. Dr Khan 
said Rs7 million had been raised at a function on Saturday night 
for the institute.

UK asks Pakistan to resolve IPPs issue, sign CTBT

LONDON, March 9: Britain has lauded the talks between India and 
Pakistan and asked to continue the dialogue on major issues, sign 
Comprehensive Test Ban Treaty, and resolve IPPs issue.
This was said by British Foreign Office Secretary for South Asia, 
Derek Fatchett during his talks with Punjab Chief Minister Shahbaz 
Sharif who called on him on Monday.
They discussed regional issues, a foreign office spokesman said.
"A wide range of issues, such as Iran, Iraq, Afghanistan, Lahore 
summit meeting between prime ministers of India and Pakistan, 
investment and economic matters, came under discussion (at the 
meeting)," the spokesman said without further elaborating.
A source close to Pakistani officials said that the chief minister 
had briefed Mr Fatchett about the Sharif-Vajpayee talks and 
asserted that the Kashmir issue had to be resolved in accordance 
with the UN resolutions if any headway was to be made towards 
improving relationship between the two countries.
The CM, the source said, also called upon Britain to exercise its 
influence along with the US, in forcing India to continue the talks 
and to reach an agreement over the long-standing issue which had 
resulted in three wars between the two countries.
The source said that the British foreign secretary appreciated 
Pakistan's initiative of inviting the Indian premier and reiterated 
Britain's position that it would be willing to involve itself in 
the issue provided the two countries agreed.
"He (Mr Fatchett) expressed Britain's hope that the two countries 
will continue the talks and that the Lahore talks will become a 
foundation for the future talks," the source said.
He also asked Pakistan to sign the Comprehensive Test Ban Treaty 
(CTBT) without any further delay.
On Afghan issue, Pakistan reiterated its position that it supported 
the UN initiatives to form a broad-based government and said that 
Pakistan was maintaining contacts with all Afghan groups at equal 
The source said that the British secretary also raised the issue of 
International Power Projects (IPPs) and asked that it should be 
resolved amicably and to the satisfaction of investors. He 
reportedly said that the issue was affecting foreign investment in 
Pakistan and should be resolved as quickly as possible.

Pakistan lucky in dealing with crisis, WB official

KARACHI, March 8: Pakistan has been very lucky in dealing with the 
post-May 1998 financial crisis, said World Bank's Islamabad-based 
economist, William Byrd Monday.
'Shocks sustained by Pakistan were not less than that faced by 
other South East Asian countries,' he said while addressing a 
workshop on public expenditure issues.
It was one of the series of workshops organised by World Bank on 
public expenditure. Similar, workshops were also held in Islamabad 
and Lahore.
During the course of discussion, William Byrd said that Pakistan's 
economy seems to be on a sustainable position as compared to the 
last two quarters of 1998.
Responding to questions posed by the participants, he said public 
sector organisations like WAPDA were examples which had adverse and 
damaging implications on other public enterprises.-APP

Larger decline averted on stock market

KARACHI, March 12: Stocks on Friday finished with an extended fall 
as most of the leading shares attracted fresh selling at the 
inflated levels but larger decline was resisted thanks to the 
presence of strong covering purchases.
The opening was distinctly easy as a section of leading bears 
indulged in near-panic selling in a bid to evoke sympathetic 
selling from the weakholders and jobbers but were again back in the 
rings and purchased at the lows.
However, there is nothing to suggest that the current run-up is 
overdone and the market will be again up after passing through a 
consolidation phases, most analysts believe adding " the weekend 
selling also played its stabilizing role".
The KSE 100-share index early was down by 24 points or 2 per cent 
but the afternoon session saw investors picking up blue chips at 
the lower levels, enabling it to finish with a modest fall of 7.77 
points at 1,052.00 as compared to 1,059.77 a day earlier.
"It now could take a technical breather after attaining its 
recently set chart level of 1,400 points", said a leading analyst 
upping his earlier near-term target of 1,200 points.
"Much has changed on the corporate front since then backed, of 
course, by some positive developments on the political front and 
the market has to respond to it", some others said adding "what has 
given credence to this perception is the massive persistent buying 
by the foreign funds".
Volume showed a sharp contraction at 125 million shares from the 
overnight's recorded figure of 213 million shares as bears stayed 
away amid predictions that the market could resume its upward drive 
when the trading resumes on Monday.
"The market has already passed through a necessary technical 
correction and it has no option but to resume its upward drive when 
the trading resumes next Monday", most analysts believe.
They based their assessment on the presence of strong foreign fund 
buying in some of the mega issues, notably Hub-Power and PTCL, 
which in turn are evoking heavy sympathetic support in most of the 
low-priced blue chips on other counters.
Minus signs again held a modest lead over the gainers at 70 to 53, 
with 32 shares holding on to the last levels amid relatively low 
volume figure.
Big gainers were led by Dawood Hercules, which posted a fresh gain 
of Rs 19.00 owing to the absence of floating stock followed by Gulf 
Commerce- ial Bank, IGI, National Refinery, Balochistan Wheels, 
Fauji Fertiliser, Reckitt and Colman and Tri-Pack Films, which 
posted gains ranging from one rupee to Rs 3.50, the largest being 
National Refinery.
Losses were mostly fractional on all the counters, barring some 
blue chips, which came in for active profit-selling and ended lower 
by Rs 1.30 to 5.00 for Grays Leasing, International Investment 
Bank, Alico, PSO, Shell Pakistan, Al-Ghazi Tractors, General Tyre, 
Ghandhara, Engro Chemical and Lever Brothers.
Hub-Power led the list of most actives, off 60 paisa at Rs 18.05 on 
42m shares followed by PTCL, lower 80 paisa at Rs 19.05 on 30m 
shares, Fauji Fertiliser, higher Rs 1.40 at Rs 55.30 on 13m shares, 
ICI Pakistan, firm 55 paisa at Rs 9.40 on 9m shares, PSO, off Rs 
1.65 at Rs 79.75 on 5m shares and Engro Chemical,lower Rs 1.75 at 
Rs 106.00 on 3m shares.
Other actively traded shares were led by Dewan Salman, up Rs 2.05 
on news of higher earnings on 3.319m shares, Telecard, off 90 paisa 
on 3.083m shares, FFC-Jordan Fertiliser, firm 15 paisa on 2.072m 
shares, Tri-Pack Films, higher Rs 1.30 on 1.591m shares, and KESC, 
up 25 paisa on 4.157m shares. There were several other notable 
deals also.
DEFAULTING COMPANIES: A modest volume of 3,500 shares, including 
1,500 shares each in Al-Qaim and Gammon Pakistan was reported, off 
five paisa but Premium Textiles managed to finish unchanged on 500 
TFC BONDS: Term Finance Certificates of ICI Pakistan and Sui 
Southern Gas came in for active support and accounted for 39,500 
and 10,000 certificates each respectively at the unchanged rate of 
5,110.00 and 5,080.00 (face value Rs.5,000.00).

Exports of manufactured goods fall 14%
Muhammad Ilyas

ISLAMABAD, March 11: Manu-factured goods exports during the first 
eight months of 1998-99 totalled $3.829 billion, indicating a fall 
of 14 per cent compared to the corresponding period of last year, 
according to provisional foreign trade statistics issued by the 
Federal Bureau of Statistics here on Thursday.
While the total exports during this period were lower by about $683 
million than $5.652 of July-February (1997-98), the share of 
manufactured goods exports also fell by a wide margin.
In July-February (1997-98), these amounted to $4.449 billion, 
compared to $3.829 billion during the same period of current 
financial year. This denotes a decline of their share in total 
exports from 78.72% last year to 77.06% this year.
A similar pattern is discernible in the exports of textile 
manufactures. These totalled $3.148 billion, constituting 63.36% of 
total exports in the last eight months. But during the same period 
of 1997-98, their share in total exports was 64.36%.
Compared to last year, the textile manufactures exports were down 
by 13.45 per cent.
A major contribution to this shortfall was made by the cotton yarn. 
It suffered a drop of 14.06% in terms of quantity.
The quantity of cotton yarn exported this year was 262,563 metric 
tons. Further analysis shows a decline in its unit value. For the 
price it fetched was $595.24 million. This is 24.27% lower than the 
export of cotton yarn last year. Cotton fabrics, the biggest single 
export item in textile manufactures, also underwent a decline of 
17.10% in dollar terms, while quantitatively, the decline was 
6.30%, indicating a general trend of drop in unit value of textile 
products. Its export totalled $687 million.
In quantity, the exports of towels and readymade garments were 
higher, respectively, by 7.98% and 2.06%, but their value in 
dollars declined by 4.12% and 14.92%  - obviously a result of 
global recession in exports markets of Pakistan. Similar trend was 
observed in exports of knitwear, bedwear, cotton bags/sacks, 
synthetic tex. fabrics, and waste material of textile fibres.
In their case, there is a glaring discrepancy between the 
quantities exported and the values received in dollars to our 
Highest decline was in export of tarpaulin & canvas goods. These 
dropped from 12,395 metric tons to 9,607 tons this year - a 
shortfall of over 22.49%, while their value in dollars was down by 
Other manufactures also suffered a big decline - 16.15% - in dollar 
terms. Their export stood at $680.74 million this year, compared to 
$811.85 million last year.
Quantitatively, carpets, petroleum & petroleum products, and 
molasses showed positive growth - by 7.88% and 19.02% and 35.64%, 
respectively. But the value they fetched was lower by 3.12% and 
17.61% and 35.35%, respectively.

Forex transactions: SBP to adopt new reporting pattern
Mohiuddin Aazim

KARACHI, March 10: The State Bank is developing a new pattern to be 
adopted by the banks for reporting their foreign exchange 
transactions after complete withdrawal of the composite exchange 
rate system which may take some time.
"That is why the government has changed the composite rate mix from 
80:20 to 95:05 instead of withdrawing it altogether," said a senior 
banker close to the State Bank.
"Had the composite rate been replaced with the floating inter- bank 
rate it would not have been possible for the State Bank to keep an 
eye over each foreign exchange transaction of the banks."
Since the composition of composite exchange rate still has a 5 per 
cent share of official exchange rate banks will be reporting 
foreign exchange transactions to SBP before buying and selling 5 
per cent forex at the official rate.
As all foreign exchange transactions minus import of wheat and 
petroleum products and conversion of frozen foreign currency 
deposits are undertaken at composite rate, SBP would still be able 
to watch closely the movements in foreign exchange market.
Senior bankers say the 5 per cent share of official rate in 
composition of the composite rate would go ultimately but before 
that SBP would introduce a fresh reporting system for the banks to 
ensure transparency in forex transactions.
"That has become necessary because Pakistan forex market is 
undergoing a phased liberalization vulnerable to all sorts of 
speculations and irregularities," said treasurer of a state-run 
Finance Minister Ishaq Dar said on Wednesday that the official 
exchange rate would continue to apply on import of wheat and POL 
products and on frozen foreign currency deposits. But sources in 
the ministry of finance say exchange rate subsidy on wheat and POL 
products may go before the close of the current fiscal year.
They say it is not clear when the official exchange rate of Rs 46 
to a US dollar would be discontinued for conversion of frozen 
foreign currency deposits though they know "it has to be done."
The sources say before allowing conversion of frozen foreign 
currency deposits at composite rate or inter-bank rate-whatever the 
case may be in the future-the government wants to see the bulk of 
these deposits converted into rupees or more preferably into dollar 
People have so far converted some $5 billion into rupees or dollar 
bonds out of $11 billion deposits frozen on May 28, 1998.
Senior bankers say around $1.5 billion worth of these deposits has 
been adjusted in collaterals against local currency loans adding 
that frozen foreign currency deposits now total about $4.5 billion 
or even less.
Some senior bankers say the government wants speedy conversion of 
frozen foreign currency deposits to be able to unify exchange rate 
They say if the exchange rates are unified without reducing the 
$4.5 billion liability into a much smaller amount it would require 
the banks to pay more to those converting foreign currency deposits 

into local currency. "That would put a hell lot of pressure on 
banks liquidity," said treasurer of a foreign bank.
Meanwhile, floating inter-bank rates almost maintained their 
overnight levels on Wednesday with the US dollar seen trading in 
the band of Rs 49.80 to Rs 49.00 before closing at Rs 49.40.
Senior bankers said as the market opened on Wednesday the State 
Bank closely monitored the movement of foreign exchange rates 
though it made no interventions like the ones it had made on 
Tuesday to pump in $15-$20 million.

Coins continue to push rupee-notes out of circulation

KARACHI, March 9: Metal coins of Rupee one and two denomination 
continue to push paper currency of similar denomination out of 
circulation amidst public criticism.

Metal coins introduced in the 2nd week of Sept '98 will fully 
replace currency notes of Rupee-one and two denomination by the 
year 2000, a spokesman of the State Bank of Pakistan (SBP) said on 
Pakistan Security Printing Corporation (PSPC) under government's 
order has already stopped printing of the Rupee-one and two notes 
with effect from 1st, July 1997.
Following this the bank discontinued fresh issuance of Rs 1 and 2 
notes from 1st July '98, he said adding notes tendered at the SBP 
or the commercial banks are not being re-issued.
However the notes already in circulation will continue to be legal 
tender till 31st Dec next year and from 1st January 2000, such 
notes will cease to be legal tender, the spokesman said.
He said 2062 million notes of Rs-one and 1098 million notes 
(pieces) of Rs-two denomination were in circulation as on 30 June 
'97 while 53 million coins of one-rupee denomination were in 
transaction across the country during the period.
Under the phasing out plan, the circulation of one-rupee notes has 
come down to 808 million (pieces) while that of rupee-two 
denomination to 837 million (pieces) as on 31st Jan '99, the 
spokesman said.
This has led to substantial increase of coins in circulation as Rs-
one and two coins now account for 75 million and 18 million 
(pieces) respectively, he added.
The metal composition of newly designed Rs 1 coin contains copper 
(95%), tin (4%) and Zinc (1%). The coin is brownish in colour and 
round in shape. With a 20-mm diameter it weighs four grams.
The coin carries the portrait of Quaid-e-Azam, the founding Father 
of the Nation while on its reverse the new design of 'Dargah Sehwan 
Sharif' of Sindh is embossed.-APP

US imposes yarn quota on Pakistan
Shaheen Sehbai

WASHINGTON, March 9: The United States has imposed unilateral 
quotas on import of Pakistani cotton yarn and a limit of 5.26 
million kilograms has been fixed, official sources said on Tuesday.
The US decision, to be officially announced in a day or two, came 
after official talks between Pakistan and US delegations failed 
last month to resolve the issue of alleged dumping of yarn by 
Pakistan into the US market hurting the local industry.
Pakistani officials said they were ready to take their case to the 
WTO tribunal which handles all textiles disputes arising out of 
quota problems. This Textile Monitoring Body (TMB) will hear the 
Pakistani case sometime in April.
"The new quota limit of 5.26 million kilograms will become 
effective from March 17," an official told Dawn. "But we will 
inform the TMB in a day or two."
Officials are claiming that the new unilateral quota limit on 
Pakistani yarn exports will not hurt Pakistani spinning industry as 
yarn exports were already declining and 5.26 million kg would be 
enough to absorb all Pakistani exportable yarn surpluses.
Pakistan and the US failed to reach an agreement after two days of 
textile talks here on February 11 and 12 after which a USTR 
spokesman confirmed to Dawn that the talks had ended without an 
"We did have a series of discussions with our Pakistani 
counterparts on a wide range of textiles and apparel trade issues. 
The talks were inconclusive and we have not scheduled any further 
negotiations. Where we go from here is an open question," the 
official of the chief textile negotiator's office then said.
When Pakistan takes its case to the TMB, the US will have to prove 
that Pakistani exports were damaging the domestic US spinning 
Pakistani officials believe it would be hard for the US to prove 
this damage in the TMB.
A similar notice issued last year was withdrawn as even then the US 
side found it difficult to prove its case.
Officials said the other issue on which talks were held between the 
two sides, the dispute over bed linen quotas, was still pending 
with the US side yet to determine under which category Pakistani 
exports should be placed.

Direct tax collection rises by Rs2.6bn

ISLAMABAD, March 11: The collection of direct taxes up to February 
1999 rose to Rs60.1 billion as compared to Rs57.6 billion in the 
same period last year, with an increase of Rs2.6 billion. A press 
release issued by Central Board of Revenue on Thursday said that 
the ollective deposits of income tax, wealth tax, capital value tax 
and workers welfare fund, rose in spite of reduction in tax rates 
which in case of personal tax were reduced to maximum of 20 per 
cent, as compared to 35 per cent in the past.

It explains: the downward trend in economic activities, lesser 
incomes shown by tax payers resulting in reduction of admitted tax 
liability and reduction in rates of withholding taxes on interest 
on securities in case of foreign banks from 58 per cent to 30 per 
cent, providing level playing field to nationalized and private 
sector, were factors causing erosion but the actual collection 
remained stable despite these factors.
This has been made possible by vigorous anti-tax-evasion drive, 
better assessments of income and recovery of tax arrears. 
Collection out of current and arrears demand was increased from 
Rs4.6 billion o Rs7.32 billion which is an increase of 59.1 per 
Collection out of additional demand created by auditing the tax 
returns during the last year also increased to all time high, Rs17 
billion as compared to Rs10.3 billion (63.5 per cent) during 
previous year.
Close vigilance in monitoring of withholding taxes resulted in 
overall improvement of 6.3 per cent despite a shortfall of more 
than Rs1.6 billion in deduction of tax from interest on securities 
occurring due to change in pattern of involvement in securities and 
federal government borrowing from SBP as against commercial banks 
which is exempt from tax.
Withholding tax deposits on imports and exports have increased by 
10.7 per cent and 5.3 per cent respectively, despite reduction in 
total imports/exports value. Number of taxpayers increased by 
260,000 December 31, 1998 onward and now they are 1.66 million; 
paid dividends as collection out of arrears increased from Rs2.268 
billion to Rs4.6 billion, it concludes.

'Show case projects': IMF to ask Islamabad to cut expenses

WASHINGTON, March 10: The US will use its weight and vote to force 
the IMF to stop unnecessary government spending by recipient 
countries on "show case" projects, and Pakistan is one specific 
example the US has in mind.
This US policy decision emerged in testimony given by Under 
Secretary of Treasury for International Affairs Timothy Geithner 
before the Senate Banking Subcommittee on International Trade and 
Finance on Tuesday.
Geithner specifically mentioned Pakistan in his testimony, besides 
others, to give an example of unnecessary government spending and 
disclosed that the US abstained on Pakistan's ESAF vote at the IMF 
on January 14 partly because of concerns over the composition of 
government spending, including military spending.
"There are specific examples of our executive director in the IMF 
using the voice, and the vote, of the US to oppose unproductive 
spending," Geithner told the hearing and then gave Pakistan's 
Analysts were clear that the term "show case projects" used by the 
US official referred to projects like the Lahore-Islamabad motorway 
in Pakistan and "unproductive spending" included the Yellow cab and 
self employment schemes, where money is dished out to political 
favourites with banks ultimately left to face the financial 
Geithner said the IMF management is making a "good-faith effort" to 
work with the US on these reforms, as are US partners in the G-7 
and other countries that support the efforts.
He said implementation of IMF reforms, set as conditions by the US 
Congress in October 1998, has advanced in several respects.
"Progress has been achieved in the three broad areas of increasing 
IMF's transparency and accountability, making the terms of IMF 
financial support more market-based and improving the design of IMF 
policies and programmes, he said.
In the area of transparency and accountability, Geithner said the 
IMF now makes public many more documents than previously. These 
include summaries of the IMF Executive Board discussions, key 
"Letters of Intent" documents on IMF programmes, key policy papers 
and more data on its financial position on a regular basis.
To make IMF financial support more market-based, Geithner cited the 
IMF's new Supplemental Reserve Facility that provides countries 
with loans for shorter terms and at higher interest rates - to 
encourage the countries to pay back the IMF assistance as quickly 
as possible.
Geithner noted that the new "contingent credit line" for combating 
financial market contagion, which the US and the G-7 proposed last 
October but which is still being developed, "will also carry 
premium rates of interest and short maturities."
Furthermore, when countries experience crises, the IMF cannot fully 
insulate these countries from the disruption that necessarily 
accompanies economic adjustment. Ultimately, however, sovereign 
governments are responsible for the decisions that shape the 
performance of their economies.

Meeting with London Club deferred: Dar

ISLAMABAD, March 10: Finance Minister Ishaq Dar Wednesday said the 
London Club meeting for rescheduling of $ 800 million commercial 
debt, scheduled for March 16, has been deferred.

'Pakistan is trying to hold meeting informally with the commercial 
creditors to negotiate rescheduling arrangements of $ 800 million 
in Pakistan, which will help save around $ 5 million,' he said at a 
press briefing. 'I have already started dialogue with the 
individual commercial creditors,' he said.
Giving reasons to defer the meeting he said, as the London Club 
comprises commercial creditors, the borrower has to meet the entire 
expenses of such meeting which amounts to around $ 5 million.
He pointed out, if rescheduling of 800 million was not finalized 
through such informal meetings, Pakistan has still the option to go 
for a London Club meeting.
Explaining the position of rescheduling of commercial debts by the 
London Club, the Minister said that an amount of $ 1.4 billion 
(Swap funds) was already allowed to be rolled-over out of the total 
$ 2.2 billion to be negotiated with the London Club.-APP

Back to the top

The World Bank at Seoul
Ardeshir Cowasjee

THE International Conference on Democracy, Market Economy and 
Development was hosted by the Republic of Korea and the World Bank 
in Seoul on February 26 and 27. The idea emerged from a 
conversation between South Korean President Kim Daw-Jung and World 
Bank President James Wolfensohn during which they agreed that 
recent events in Asia had shown that democracy and development were 
The aim of the conference was to convince the South East Asians 
that, for whatever it is worth, democracy is still the best form of 
government, and that there are ways and means available to be 
democratic without being corrupt and inefficient. As said Oscar 
Arias Sanchez, former president of Costa Rica, the ills of 
democracy can only be cured by more democracy.
An electronical gonging heralded the opening of the conference, 
commanding silence. The compere then announced the arrival of 
President of the Republic of Korea Kim Dae Jung and President of 
the World Bank Group James D Wolfensohn. All present were 
programmed to stand up and clap whilst the two made their grand 

Having duly stood and applauded, we waited for the two presidents 
to seat themselves and resumed our seats. The compere proceeded to 
tell the gathering how happy the people of Korea were to mark the 
warm, hearty and spontaneous welcome accorded to their Great 
Leader. Were he to launch himself into a narration of the 
achievements of the leader, he said, it would take him days. 
However, briefly, the basic qualifications were there - the 
president had spent many a long spell in jail and survived many an 
attempt upon his life.
James Wolfensohn's detractors maintain that the difference between 
him and God is that the latter does not claim to be Wolfensohn. 
That may be so, but Wolfensohn has certainly revitalized the World 
"When I came to the Bank," he told us, "corruption was a word no 
one was allowed to utter; so I redefined corruption as an economic 
and social issue. Corruption became a central item on the 
Development Committee's agenda." He pledged that the Bank would 
fight poverty with a passion. We await salvation.  President Kim, 
in his opening address, said that the sufferings of Korea and other 
countries affected by the recent crisis have not been in vain as 
during the past year's struggle they have learned invaluable 
lessons. There must be a fundamental change in the approach to 
development, a paradigm shift towards a parallel pursuit of 
democracy and a market economy. For 30 years, Korea's stunning 
economic growth had dazzled the world and when the crisis hit, it 
was the unsound distorted structure of its economy that shocked the 
world. The greatest fault had been the neglect of the development 
of democracy alongside economic development. "If Korea had pursued 
a parallel development of democracy and market development from the 
start, it would have been possible to check the collusive 
relationship between government and big business, centred around 
the government-controlled financial sector."
We can learn much, if we want to, from the Korean example. In the 
past year, the number of central government ministries and agencies 
has been reduced from 21 to 17. The number of central and local 
government employees is being reduced by over 40,000. The number of 
government regulations has been reduced to half its previous level 
of 11,000.
In one year, Korea has built up foreign reserves from $3.9 billion 
to $50 billion, the current account deficit of $8.7 billion has 
been turned to a surplus of $39.9 billion, foreign investment has 
increased from $6.9 billion to $8.9 billion, and the exchange rate 
has been brought down by almost 50 per cent.
"Let me be clear," pronounced President Kim, "there must be a 
sweeping change in society. First, we must get rid of past, 
corrupt, inefficient, egotistical practices and rebuild the nation 
based on the principles of democracy and a market economy. In this 
regard, every citizen must be aware of his or her rights as well as 
responsibilities." Note : rights, yes, but not without 
responsibilities. The citizens of Pakistan have yet to learn the 
meaning of the word responsibility.
He continued : "Looking back on the past year of reform, I can draw 
one important conclusion. It is that introducing new laws and 
institutions alone is not enough. Reform can only succeed when 
these institutional changes are accompanied by changes in people's 
attitudes. This is the real test."
Five former heads of state and government addressed the opening 
session : Oscar Arias Sanchez of Costa Rica, Felie Gonzalez of 
Spain, Fidel Ramos of the Philippines, Poul Schluter of Denmark and 
Nakasone Yasuhiro of Japan.
Mr Sanchez dwelt heavily on the subject of corruption. "Currently, 
one of the greatest dangers to democracy throughout the world is 
corruption. Too often, our governments have suffered from the 
disservice of self-interested officials. These people have 
constructed unethical networks of privilege and used political 
power to benefit themselves. When exposed, these acts are 
profoundly disillusioning and poison public confidence in 
democracy. Yet many politicians have practised a form of corruption 
even more sinister. They avoid taking stances on serious and 
controversial issues, instead of saying only what public opinion 
polls indicate will be well received. They hide consequential facts 
about the challenges to social justice, and speak instead of the 
rosy fictions of general prosperity. They preach the virtue of free 
elections and public will, but practise deference to the wealthy 
individuals who make large donations to their campaigns. The truth 
of irresponsibility is not lost on the people of the world, who 
grow cynical and decline to participate in the injured formal 
mechanisms of democracy." Very, very close to home.
And on inflated defence budgets, "If we are to promote democracy 
and development, we must confront the monstrous irresponsibility of 
military spending. The sad fact is that half of the world's 
governments currently dedicate more resources to defence than to 
health programmes. Such distortions in national budgets contribute 
to poverty and retard human development .... the preparation for 
war is one of the greatest obstacles to human progress, fostering a 
vicious cycle of arms buildups, violence and poverty."
Discipline, one of our Founding Father's three points of 
exhortation to his countrymen, was stressed by the former Danish 
prime minister, Paul Schluter. His observation was that every 
society needs discipline, whether emanating from within or forced 
upon it from outside. Without the discipline needed to provide 
sound economic foundations, a country will fall behind in 
advancement. Discipline is not only a must for the fostering of 
growth but for the maintenance of a country on the path of 
sustained growth. Discipline is a must for the imposition of 
economic constraints that impose responsible economic policies, 
curb deficits and lavish spending. Discipline inhibits 
irregularities which distort the economy.
With no discipline and social cohesion, countries fall apart, 
disparity pits social groups against each other, mistrust becomes 
the norm, and, the ugliest of all, each group fights to secure for 
itself the largest slice of the national cake. Discipline is not an 
involuntary force upheld by fear of penalty. It constitutes the 
awareness of the population to respect the rules of society, both 
written and unwritten.
Jinnah realized all this over fifty years ago, as he realized that 
discipline is reflected in confidence in the legal system, for it 
is only with discipline that legislation can be felt to be just and 
equitably applied.
South Korea is doing its best. It is making giant efforts to move 
forward, to participate in the trend towards globalization, to meet 
the challenges of the new millennium. But it has one giant problem, 
a seemingly unresolvable problem - its Northern neighbour. A 
demilitarized two kilometer-wide zone runs across the peninsula at 
the 38th parallel, separating South and North Korea, patrolled by 
some million and a half troops from both South and North who 
perennially guard the strip to keep it neutral. This is the world's 
most fortified border, one of the last remnants of the cold war, 
dividing Stalinist North from democratic South.
North Korea, of course, remains somewhat of a basket-case, in 
desperate economic plight, stricken with famines, mass poverty and 
oppression, bent on the development of long-range missiles and a 
nuclear facility. Though it has lost its 'fatherland,' the dead 
'father' still rests above ground, in Father Lenin fashion, for all 
to see and wonder at. Their uncountable generals have even 
surpassed the old Soviet counterparts in the quantity and weight of 
the medals they sport on their uniforms. Metal spreads across their 
chests from armpit to armpit, as with the Soviets. But, unlike 
them, metal also spreads across the North Korean top-brass covering 
their body width below the belt.


Lights out 	
Irfan Husain

WHAT do tribals in the Northern Areas, Baloch sardars, Punjabi 
feudals and industrialists, and legislators in Sindh have in 
All of them are united in wanting the government to call off the 
ongoing drive to collect electricity dues by using the army. 
Indeed, in a unique display of unity, the Sindh provincial assembly 
passed a unanimous resolution calling on the federal government to 
halt this effort. According to the power authority chairman, 44 
legislators including sitting federal and provincial ministers were 
caught stealing electricity. Some of them have coughed up their 
dues, while criminal charges have been filed against the rest. 
Billions have been recovered, and 26 million units of electricity 
that were being pilfered are now available on the grid.
And this is only the tip of the iceberg. Across the land, tens of 
thousands of air conditioners are running on virtually free power, 
as are water pumps on thousands of farms and machines and furnaces 
in hundreds of factories. With the open connivance of linesmen, 
doctored meters report only a fraction of the electricity actually 
being consumed. The so-called kunda (hook) connections account for 
only a fraction of the power that is being stolen by the fat cats. 
After all, one illegal kunda will run at most a couple of lights 
and a fan or two, but a doctored meter in Defence Housing Society 
will allow the owner to run several air conditioners virtually 
So what is it about our elite that makes them into such chronic 
cheats? One obvious reason is greed: why pay a bill if you can 
avoid it? Another is the conviction that they are above the law. 
After all, what is the point of having clout if you have to pay 
bills like the rest of the herd? Finally, there is the complete 
lack of deterrence: for years, WAPDA and KESC have restricted their 
efforts to curb line losses to removing kundas, and hauling up 
those who installed them. The high and mighty have got away with 
paying peanuts. The result is that WAPDA's line losses have soared 
to well over 30 per cent against the international average of 
around 6 to 8 per cent. Simultaneously, generation cost has risen, 
partly owing to the more expensive power WAPDA is buying from the 
IPPs. Another reason for the utility service's crisis is the 
inability of scores of government departments to settle their bills 
that run into billions. All these factors have pushed this bloated 
behemoth to the wall, making it default on its own dues to furnace 
oil and gas suppliers; they in turn are in serious difficulties as 
a result. This cascade effect may well bring down the whole economy 
if it is not halted immediately.
It was presumably for this reason that the government called in the 
troops. In WAPDA, as in most government corporations, there is an 
alliance between a supine management and a powerful union that is 
cemented by corruption and inefficiency. There is just no way this 
team could have made customers pay their bills. Although I had 
serious reservations about using the army for this task, I cannot 
think of any other agency that could have undertaken it. 
Unfortunately, an absurdly low salary structure and a complete lack 
of accountability have combined to ensure a virtual paralysis at 
every level of government.
But obviously, the army cannot be forever deployed to read 
electricity meters. The danger is that as soon as it goes back to 
its normal duties, the meter readers will be bribed again to 
connive with power thieves. This is the problem with all quick-fix 
solutions: as soon as you remove the external agency called in to 
solve the problem, there is a strong tendency to revert to the old 
status quo. So while it is more difficult to reform an institution 
from the foundation up, it is worth it in the long run.
Unfortunately, all politicians tend to go for quick solutions, 
although in WAPDA's case, there were very few options available.
In a very real sense, what is happening today in WAPDA is 
indicative of a national phenomenon. Nobody wants to pay their 
taxes, customs duties or octroi charges if they can get away with 
dodging them. As a result, the state is bankrupt and we lurch from 
one potential default to another, subject to constant fiscal 
hazards. And while the government manages this risky balancing act 
on the tightrope, the pressing needs of ordinary citizens keep 
piling up. Whatever resources the state can drum up are too often 
frittered away on madcap projects like the multibillion-dollar 
motorway and the yellow cab scheme that has gutted the nationalized 
banks. The rest goes to service our enormous internal and external 
debt, and to pay for the army of soldiers and baboos the state 
Many of the thousands who have fallen to WAPDA's recovery drive 
complain that they have stolen peanuts compared to the businessmen 
who have defaulted on billions in bank loans. Indeed, Benazir 
Bhutto has gone so far as to propose that the army be used to go 
after these defaulters. For somebody who pays virtually no taxes, 
she has some gall. But it would be nice to see some independent, 
strong agency make defaulters like the Sharifs and Saifur Rahman 
return the billions they owe the banks. In an attempt to clear 
their dues, the PM's family has offered their creditors a few of 
their sick units as full payment. The British firm of auditors 
appointed to evaluate these factories has priced their net worth 
far below what is owed to the nationalized banks.
It is these shenanigans that have brought local banks controlled by 
the government to virtual bankruptcy. Their precarious situation is 
reflected in the abysmal returns they pay their depositors. Indeed, 
their poor performance is one reason foreign banks here do so well: 
few people are gullible enough to trust the nationalized banks. Add 
to this the freezing of foreign currency accounts, and you have a 
banking system nobody has any confidence in.
Basically, the culture of cheating and thuggery now pervades the 
entire society so thoroughly that everybody in a position of 
authority tries to get away with ripping off the state. Aitzaz 
Ahsan produced evidence on the floor of the Senate proving that 
Nawaz Sharif paid all of Rs 407 in taxes over a period of three 
years. If this is indeed so, then he scarcely has the moral 
authority to ask the rest of us to pay our dues.
So until our leaders are willing to put their chronic greed aside 
and set an example, the army's current efforts to make people pay 
their electricity bills will be a short-term palliative.

Wasim, Miandad dismiss charges of match-fixing

LAHORE, March 8: Pakistan captain Wasim Akram and coach Javed 
Miandad on Monday denied accusations that they gave Sri Lanka an 
easy ride in the third Asian Test championship to ensure them a 
place in the championship's final.

India, which is now out of contention, has accused Pakistan of 
allowing Sri Lanka to gain enough bonus points to reach the final 
on March 12-16 in Bangladesh.
"I did not say anything to players and we were going for our 
points. All the batsmen got out after playing good innings," coach 
Miandad said.
Sri Lanka, without star players Arjuna Ranatunga, Aravinda de Silva 
and Chaminda Vaas, needed seven points from the game to deprive 
India of a place in the final. India had ten points from two Tests.
Pakistan had already qualified for the final before their match 
against Sri Lanka and had a chance to choose their opponent in the 
Miandad said he would have had no fears of playing India in the 
"We have recently beaten them in two Tests on their grounds so 
there was no point in avoiding India," he said.
Skipper Wasim also refused to accept that his team gave Sri Lanka 
easy points.  "We have always played for a win and that's why we 
played fast in the first innings so that we can force a win and 
that's all I have to say," he said.
The talking point of day two of the continuing Test between 
Pakistan and Sri Lanka was the way in which Pakistan conceded easy 
points to Sri Lanka.
The rules of the inaugural Asian Championship allow teams to score 
batting and bowling points in their 100 overs but only in the first 
"Pakistan was well within their rights to chose their opponent in 
the final as per the flawed rules of the championship but they 
should not have done so," former Pakistan paceman Sikander Bakht 
Tournament director Duleep Mendis of Sri Lanka disagreed that the 
rules were flawed.
"This has nothing to do with the rules. I saw nothing wrong in this 
match and Sri Lanka played with positive frame and earned points," 
Mendis said.
Former Indian batting star Sunil Gavaskar, one of the three members 
of the championship's technical committee, agreed with Mendis.

"I find no flaws in the rules but this is the first championship 
and there can be many changes in future," he said.
"I can't read minds to say there was anything wrong in Pakistan's 
way of playing," he added.
Former Pakistan captain Ramiz Raja said he found nothing wrong in 
Pakistan's strategy.
"Pakistanis did nothing wrong if they tried to chose their 
opponents in the final. If you have Zimbabwe and Australia as 
options you will definitely chose Zimbabwe and it is another thing 
if Zimbabwe creates an upset," Ramiz said.-AFP

Third Pakistani hits century in both innings

LAHORE, March 7: Opener Wajahatullah Wasti, who remained unbeaten 
at 121 in Pakistan's second innings, on Sunday became the third 
Pakistani to have scored centuries in both innings of a test match.
Wasti, who had earlier made 138 in the first innings of the third 
match of the Asian Test Championship against Sri Lanka, joined the 
ranks of master batsmen Hanif Mohammad and Javed Miandad in only 
the second Test of his career, as Pakistan set Sri Lanka a tough 
target of 385 to win with only last day's play remaining. While 
Hanif had scored his two hundreds against England, Miandad had 
performed the feat against New Zealand, 15 years ago.

Azlan Shah Hockey: Zaka rates South Korea as a tough team

KARACHI, March 9: Team manager Khawaja Zakauddin on Tuesday rated 
South Korea, one of the six-nation Azlan Shah Hockey contestants, 
as stiff challenge to overcome by Pakistan in Kuala Lumpur when the 
event starts on April 2.
We have suffered defeat by 2-3 in the semifinals of the Bangkok 
Asian Games a few months back but this time the Pakistan s new look 
side is fully determine to take sweet revenge of its defeat. said 
former Olympian.
Talking to Dawn here at the Hockey Club of Pakistan, where the 
probables start their training from tomorrow morning, stated that 
after winning the recently concluded nine-match series against 
Asian Games Champions India by 6-3, the Pakistan team is in high 
spirit. Pakistan has set its eye to win the Azlan Shah hockey title 
in Kuala Lumpur, a venue where for a considerable long time we had 
not returned home victorious, emphasised Zakauddin
He said so far other teams are concerned - Germany, Canada, hosts 
Malaysia, and New Zealand- Pakistan on its present run of form is 
much better to be in the final. The likely finalists after the 
league matches would be South Korea, former Asian Games champions.
Zakauddin said it is indeed highly concerning that Pakistan fared 
badly in the Bangkok Asian Games and we were relegated to qualify 
for the next year Sydney Olympics. However, he looked confident in 
saying that Pakistan would qualify for the Sydney Games as the 
process of rebuilding the team has already began.
He said the final squad should be selected before the Id-ul-Azha 
holidays on March 28 and March 29 as the tournament starts on April 
He will discuss the selection issue with the PHF highups for fixing 
the trials date.
He said we have good forward line but the still we are concerned 
about the deep defence that has not lived to our spectation to 
thwart the rivals attack. The inside-right and insideleft too have 
to fall to back to help the intermediate line, he added.
About half a dozen upcountry probables out of 29 for the camp have 
reported till the evening and all of them are expected to be here 
by tomorrow.
The training starts tomorrow at 6.30 am for about two hours 
resuming at 3-30 pm, for another session, ending also after two and 
half hours.

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