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DAWN WIRE SERVICE
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Week Ending : 13 March 1999 Issue : 05/11
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Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
We encourage comments & suggestions. We can be reached at:
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mail DAWN Group of Newspapers
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Please send all Editorials and Letters to the Editor at
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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NATIONAL NEWS
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+ 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
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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
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EDITORIALS & FEATURES
+ The World Bank at Seoul Ardeshir Cowasjee
+ Lights out Irfan Husain
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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
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NATIONAL NEWS
990313
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Pakistan not helping Korea in Nuclear field: FO
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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
tendentious."
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.
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990309
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Power sale to India: Govt facing internal differences
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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
waste.
The effective control on power theft by the Wapda management, has
rendered 2500 MW electricity as surplus.
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990312
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Pakistan bans export of mines
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Bureau Report
ISLAMABAD, March 11: Pakistan has immediately imposed ban on the
export of anti-personnel mines (APMs) to meet an international
commitment.
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
weapons'.
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990307
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Pakistan criticises US on human rights report
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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
countries.
"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
stations.
"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
tests.-Reuters/NNI
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990312
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COAS lauds army role in WAPDA
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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
Parliament.
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."
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990312
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Sartaj for level playing field to raise trade with India
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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
Organization.
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-
98.
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
complimentary.'
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
countries.
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
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990309
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Storming of SC building: Legislators plead not guilty
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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
guilty.
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."
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990310
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461,000 acres of land given to peasants, says PM
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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
remarked.
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
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990310
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Members of all Fiqhs entitled to exemption
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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-
Jafria.
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.
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990309
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Kahuta labs can launch a satellite into orbit: Qadeer
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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
said.
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.
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BUSINESS & ECONOMY
990310
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UK asks Pakistan to resolve IPPs issue, sign CTBT
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Correspondent
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
levels.
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.
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990309
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Pakistan lucky in dealing with crisis, WB official
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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
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990313
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Larger decline averted on stock market
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Reporter
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
shares.
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).
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990312
-------------------------------------------------------------------
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
disadvantage.
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
37.91%.
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.
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990311
-------------------------------------------------------------------
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
bank.
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
bonds.
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
system.
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.
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990310
-------------------------------------------------------------------
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
Tuesday.
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
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990310
-------------------------------------------------------------------
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
agreement.
"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
industry.
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.
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990312
-------------------------------------------------------------------
Direct tax collection rises by Rs2.6bn
-------------------------------------------------------------------
Correspondent
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
cent.
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.
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990311
-------------------------------------------------------------------
'Show case projects': IMF to ask Islamabad to cut expenses
-------------------------------------------------------------------
Correspondent
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
example.
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
consequences.
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.
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990311
-------------------------------------------------------------------
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
===================================================================
EDITORIALS & FEATURES
990307
-------------------------------------------------------------------
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
inseparable.
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
entrance.
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
Bank.
"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.
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990313
-------------------------------------------------------------------
Lights out
-------------------------------------------------------------------
Irfan Husain
WHAT do tribals in the Northern Areas, Baloch sardars, Punjabi
feudals and industrialists, and legislators in Sindh have in
common?
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
free.
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
employs.
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.
===================================================================
SPORTS
990309
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Wasim, Miandad dismiss charges of match-fixing
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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
final.
Miandad said he would have had no fears of playing India in the
final.
"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
innings.
"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
said.
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
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
990308
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Third Pakistani hits century in both innings
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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.
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
990310
-------------------------------------------------------------------
Azlan Shah Hockey: Zaka rates South Korea as a tough team
-------------------------------------------------------------------
Reporter
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
2.
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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