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DAWN WIRE SERVICE
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Week Ending : 19 June 1999 Issue : 05/25
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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
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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NATIONAL NEWS
+ Government aims at breaking stagnation, raising revenues
+ Supreme Court verdict: Payment of interest in forex ordered
+ Nawaz calls on G-8 to help avert conflict
+ Efforts for dialogue to continue: FO
+ Mamnoon Hussain new Sindh governor
+ Admits losses along LoC: Delhi puts navy on high alert
+ Budget proposals 1999-2000: Balochistan unveils Rs5.52bn PSDP
+ BBC film exposes Sharif family's corruption: Benazir
+ It's an effort not to tax common man, says Dar
+ Abolition of zila tax to provide Rs100bn relief: Dar
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BUSINESS & ECONOMY
+ Rs37bn debt raised thru $ bonds in '98-99
+ Wealth tax laws to spur parallel economy
+ Confusion over budget anomalies
+ Govt planning set-up on withholding tax
+ Supplementary budget: Approvals of Rs1bn sought
+ Rs35.78bn NWFP budget
+ CBR issues procedure for collection of CED on ads
+ KSE 100-share index falls by 37 points
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EDITORIALS & FEATURES
+ Wars Ardeshir Cowasjee
+ When silence is no longer a virtue Ayaz Amir
+ Accountability in action Irfan Husain
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SPORTS
+ Saeed, Wasti put Pakistan into World Cup Final
+ Pakistan head for Lord's in confident mood
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NATIONAL NEWS
990613
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Government aims at breaking stagnation, raising revenues
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By M. Ziauddin
ISLAMABAD, June 12: Finance Minister Ishaq Dar presented here in
the National Assembly on Saturday a highly optimistic budget of
Rs642.2 billion for 1999-2000, hoping to meet the anticipated gap
of Rs112.7 billion through borrowings from external and domestic
non-banking sources.
The overall deficit estimated at 3.3 per cent of the anticipated
GDP for the next year has been worked out by adding the net
external borrowing amounting to Rs59.3 billion to non-bank
borrowing amounting Rs67.1 billion showing a gross deficit of
Rs126.4 billion which after adjusting against the negative bank
borrowing of Rs13.7 billion comes down to Rs112.7 billion.
Mr Dar also hopes to increase income from tax and non-tax revenue
by as much as Rs70 billion, half of which is expected to come
perhaps from additional taxation efforts.
The current expenditure for the year is estimated at Rs525.9
billion while the tax revenues are estimated at Rs356 billion.
Income from surcharges are estimated at Rs63.3 billion and non-tax
receipts at Rs141.7 billion.
The total resource mobilisation effort for the year is estimated at
Rs655.86 billion against total anticipated expenditure of Rs642.2
billion with the after tax surplus of Rs13.7 billion going to the
banking sector as repayment of previous loans.
Informed sources said that the government proposes to earn an
additional income of Rs15 billion from the new income tax proposals
and another Rs6 billion from the fresh central excise duty
measures.
In the face of stagnating trends in revenue income the new budget
proposes an ambitious 12 per cent increase in the tax revenue
income and another 10 per cent increase in non-tax revenues over
the current year's revised estimates for these heads.
The budget proposes granting government employees special
additional allowances of 25 per cent ( BPS1-16) and 20 per cent
(BPS 17-22). The pension of the retired officials will also be
raised by these additional rates which will be exempt from income
tax.
The details of the new taxation efforts and the financial impact on
the budget of the new concessions and reliefs will be announced by
the finance minister on Sunday at his post-budget press conference.
On the other hand, despite the debt relief made available to
Pakistan by official and private foreign debtors, the allocation
for debt servicing remains very high at Rs287.44 billion against
the current year's revised estimates of Rs270.25 billion.
And for understandable reasons the defence allocation for the next
year has been increased by nearly 11 per cent at Rs142 billion
against this year's revised estimates of Rs128 billion.
Like in the previous years, the total revenue income at Rs422.92
billion is less than the total budget for defence and debt-
servicing which together claim as much as Rs429 billion.
The entire development budget of Rs116.29 billion and the balance
of the current budget of about Rs100 billion (running the
government, grants to provinces and subsidies) totalling over Rs216
billion is proposed to be financed by foreign (Rs185 billion) and
local non bank borrowing (Rs44.1 billion) amounting to around Rs229
billion leaving a surplus of about Rs13 billion which the
government proposes to retire to the banking sector.
Some of the new taxation measures are likely to increase the cost
of advertising, travelling, insurance, indenting and petrol and
diesel. Cigarettes, cement, shampoos, detergent powder and LPG
cylinders will also become costlier.
Users of credit cards and cheque books will be required to pay
higher central excise duties and a 12.5 per cent CED has also been
proposed on advertisements appearing in newspapers, journals and
periodicals.
Salaried persons whose income is more than Rs300,000 will be paying
increased taxes on their incomes because their perks have also been
taxed at the same rates as their salaries. And professionals will
now be paying the professional tax at higher rates.
The rate of tax on all categories of prize winnings of all raffles
and lotteries will be increased from 7.5 per cent to 10 per cent.
Sales tax law is being proposed to be extended to Northern and
Tribal areas which is expected to net in significant additional
income. The rate of one per cent tax on supply of goods to non-
registered persons will now be raised to 3 per cent.
On the other hand the budget also proposes a number of reliefs and
concessions including in the construction and transport sectors.
The housing scheme alone is expected to generate circulation of as
much as Rs400 billion and revive as many as 40 industries. Indirect
exporters have also been given a number of tax and duty
concessions. Excise duty on telephone has been reduced from 25 per
cent to 15 per cent.
The personal income tax rates have been rationalised by adding
three income brackets and rate slabs of 25 per cent, 30 per cent
and 35 per cent for those whose incomes are Rs500,001 to Rs700,000,
from Rs700,001 to Rs1,000,000 and exceeding Rs1,000,000. However,
existing taxpayers whose income is below Rs500,000 would pay tax at
the existing rates.
Companies not declaring dividends but creating excess reserves will
pay tax at the rate of 10 per cent of the amount of reserves
exceeding 50 per cent of their paid up capital. The previous limit
of income for compulsory filing of wealth tax return at Rs100,000
has been raised to Rs200,000.
The sales tax exemption limit will be enhanced from annual turnover
of Rs0.3 million to Rs0.5 million while the limit will be Rs 1
million in case of retailers.
For turnover tax scheme, the limit in case of manufactures has been
raised from annual turnover of Rs1 million to Rs2.5 million while
for retailers, the scheme will apply to those having annual
turnover of Rs1 million to Rs5 million.
Major agricultural inputs like phosphoric acid and phosphatic rocks
used for local manufacturing of DAP and phosphatic fertilizer and
cattle feed will also be exempted from sales tax.
Excise duty on polypropylene bags and sacks is proposed to
withdrawn. Customs duty on import of buses and coaches designed to
transport more than 10 persons will be reduced to 25 per cent from
the present 35 to 60 per cent.
Further, customs duties on photographic film rolls, photographic
papers, close circuit TV cameras, video cameras, chemicals for
photographs and optical film have been reduced from 20-35 per cent
to 10 per cent. Radio licence fee has also been withdrawn.
Imported luxury cars will also become cheaper as in place of sales
tax, income tax and CVT one fixed duty has been imposed on the
basis of engine capacity but the duty will be payable in US
dollars. The entire outstanding loans of House building Finance
Corporation and Small Business Finance Corporation including mark-
up will be written off for destitute widows.
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990619
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Supreme Court verdict: Payment of interest in forex ordered
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Rafaqat Ali
ISLAMABAD, June 18: The Supreme Court on Friday directed the
federation to start payment of interest/profit on the Foreign
Currency Accounts (FCA) in foreign exchange, and evolve a scheme
within a "reasonable period" for gradual removal of restriction on
operation of FCAs.
The court held that the FCA holders were entitled to receive
interest/profits in the foreign exchange on their deposits at rates
already agreed as per original arrangement between them and the
respective banks.
The apex court also allowed the non-resident Pakistani and foreign
FCA holders to utilize the interest/profit payable to them under
the arrangement between them and the banks concerned in any manner
including the right to remit the same abroad.
The seven-ember bench held that Section 2 of the Foreign Exchange
(Temporary Restriction) Act, 1998 (Act IV of 1998) was lawful
(intra vires) of the Constitution, subject to the declaration that
the same did not confer any power on the federation or on the State
Bank of Pakistan (SBP) to compel FCA holders to convert their
foreign exchange holdings into Pakistani rupees at the officially
notified rate of exchange, or to compel the said account holders to
liquidate their FCA account into Pakistani rupees which foreign
exchange holdings had been accepted by the respective banks as
security against any loan or other facilities extended to them.
The court expressed its concern on the improper utilization of
foreign exchange deposits of the FCA holders by the successive
governments in breach of the solemn commitment given by the
legislature. The court also said that State Bank of Pakistan (SPB)
also failed to perform its statutory duty to protect the interests
of the FCA holders.
The court held: "We are perturbed to note that despite the
assurance given by the legislature in sub-section (4) of Section 5
of the Protection of Economic Reforms Act, 1992 to the effect that
"The State Bank of Pakistan or other banks shall not impose any
restrictions on deposits in and withdrawals from the foreign
currency accounts and restrictions, if any, shall stand withdrawn
forthwith", the successive governments improperly utilized the
foreign exchange deposits of the Foreign Currency Account holders
in breach of the above solemn commitment and the State Bank of
Pakistan also failed to perform its statutory duty to protect the
interests of the Foreign Currency Account holders, thereby creating
a situation where at present it has become practically impossible
to honour the above solemn undertaking given by the legislature."
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990619
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Nawaz calls on G-8 to help avert conflict
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Hasan Akhtar
ISLAMABAD, June 18: Prime Minister Nawaz Sharif has urged the G-8
leaders, meeting in Cologne this weekend, to play an effective
role, collectively and individually, for the resolution of the
Kashmir issue and for averting a conflict between India and
Pakistan.
Foreign Office spokesman Tariq Altaf, at a news briefing here on
Friday, revealed the salient points of the prime minister's letter
to the leaders of G-8, sent on Thursday.
Munir Akram, a senior diplomat, posted to the Geneva offices of the
UN, had been instructed to project Pakistan's stand at the G-8
summit in Cologne, by meeting various delegations there, the
spokesman said.
The Foreign Office had also briefed exhaustively the G- 8 envoys in
Islamabad on the current Kargil situation and advised its heads of
diplomatic missions in the capitals of G-8 countries to meet their
foreign ministry officials and brief them on the impending crisis
in South Asia, he added.
The spokesman said that in his letter to leaders, representing the
world's most industrialised countries, the prime minister had
stressed that the G-8 " should avoid taking a narrow view (of the
Kargil crisis) which could encourage India to justify its
belligerence".
Writing to the G-8 leaders, in the backdrop of the emphatic advice
of major world powers to Pakistan to "withdraw from the Indian
zone" in the Kargil-Drass sector and resume bilateral dialogue with
India, the prime minister urged the G-8 "to adopt a constructive
and solution-oriented approach" in dealing with South Asia's most
serious crisis in 28 years, recognising in this context "the
centrality" of the unresolved Kashmir dispute.
According to the spokesman, the prime minister stated: "Kargil
cannot be viewed in isolation from the larger issue (of Kashmir)
nor dissociated from the record of India's past transgressions to
alter the LoC to its advantage".
The spokesman said India had repeatedly violated the LoC, and
pointed out that the occupation of about 2,500 square miles in
Siachen, utterly disregarding the LoC, was "a standing example".
The prime minister asked the G-8 leaders to call upon both India
and Pakistan " to restore respect for the sanctity of the LoC in
Kashmir," adding that "Pakistan has always respected the LoC."
The prime minister further stated that" while addressing the
current situation, the G-8 must support resumption of talks between
India and Pakistan for a final settlement of the Jammu and Kashmir
issue."
The prime minister expressed the view that the G-8 leaders, "
individually and collectively, must play a positive role to resolve
the crisis and avert a conflict", stressing that a constructive and
solution-oriented approach would contribute to preserving and
promoting the cause of peace and stability in South Asia.
Answering questions at the briefing, the spokesman said Indian
military movement and threats were being closely monitored and
there should be no doubt about the preparedness of Pakistan armed
forces to thwart any attempts on the national independence and
integrity.
A meeting of OIC foreign ministers and also of its Kashmir contact
group, the spokesman said, would consider the J&K and Kargil issues
later this month in the African city of Burkin Saso where, he
expected, Pakistan's position would be better understood and that
the foreign ministers would extend full support to Islamabad.
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990617
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Efforts for dialogue to continue: FO
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Bureau Report
ISLAMABAD, June 16: Pakistan has reiterated that it will continue
its efforts to de-escalate the tension along the Line of Control
through talks with India.
Talking to Dawn here on Wednesday, a foreign office spokesman,
Tariq Altaf, said that despite New Delhi's negative response to
Islamabad's peace initiatives "we will keep on trying to defuse the
tension through peaceful means."
Sources said that after the failure of talks between the foreign
ministers of two countries last week, Pakistan was weighing other
options to prevent the situation from further deterioration.
To a question, the Foreign Office spokesman said that the
government was considering sending diplomatic missions to important
capitals to apprise the world of the real situation.
Mr Altaf had nothing to say when the FO's response was sought over
President Clinton's latest request to Prime Minister Nawaz Sharif
to pull his forces out of Kargil. Pakistan has been consistently
saying that none of its soldiers had crossed over the Line of
Control and that the Indian positions in Kargil had been captured
by the Kashmiri Mujahideen.
When contacted, the director-general of Inter-Service Public
Relations, Brig Rashid Qureshi, was reluctant to offer comments on
the telephonic conversation between Mr Clinton and Mr Sharif,
saying that he had no official information in this respect.
He, however, felt that the US and the Western media lacked the
understanding of the issue. "They need to come and read the actual
situation between Pakistan and India," he said.
When asked to comment on the reported violation of the LoC by an
Indian fighter aircraft on Wednesday, he said there was some air
activity and the fighters flew along the LoC but none had violated
the LoC. "There was a technical violation when one of the rockets
fired by these fighters fell on the Pakistani side of the LoC,"
Brigadier Qureshi said.
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990618
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Mamnoon Hussain new Sindh governor
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Ihtashamul Haque
ISLAMABAD, June 17: The federal government has appointed Mamnoon
Hussain new Sindh governor in place of Lt-Gen Moinuddin Haider,
says a notification issued late on Thursday night.
It further said that Education Minister Syed Ghous Ali Shah had
been appointed adviser to the prime minister on Sindh affairs. Mr
Shah would have all the powers of the chief minister and his status
would be that of a federal minister.
"The new governor will act on the advice of the adviser", said a
spokesman for the prime minister's secretariat. He told Dawn that
the new governor would take oath in Karachi on Saturday. The Chief
Justice of Sindh High Court, Justice Nazim Hussain Siddiqui, would
administer the oath.
Ghous Ali Shah had resigned as education minister and his
resignation had been accepted by the prime minister, the spokesman
said. The notification also sought changes in the order of October
28, 1998 which had given all powers of the chief minister to the
governor. "And now article 232(2c) has been amended to withdraw the
governor's powers relating to the office of the chief minister and
vest those powers in the adviser", said the spokesman.
Earlier on Thursday, Prime Minister Nawaz Sharif presided over a
meeting which decided to change the set-up in Sindh. Mamnoon, who
is the president of Karachi Chamber of Commerce and Industry, has
been directed by the prime minister to further improve the law and
order situation by taking into confidence the important political
and non-political elements in the province.
Informed sources said that there existed differences between Moin
Haider and the federal government on various issues. Moinuddin
Haider, who met the prime minister on Thursday, had been resisting
the idea of reviving political activities with special reference to
providing an opportunity to the PML to set up its government in
Sindh.
Sources said that the PML leaders and workers had been demanding a
change in the set-up in Sindh. They had been telling the prime
minister that they needed a politician to be the head of the
province.
Nevertheless, the appointment of Ghous Ali Shah as adviser to the
prime minister, is being seen as a new development. Sources said
that Shah would, in fact, be calling the shots and create
circumstances to set up a Muslim League government in Sindh.
He has been asked to muster support of the disgruntled elements in
the PPP and independent MPAs in the Sindh Assembly in order to
establish a Muslim League government there.
Sources said the minister of state for water and power, Capt Haleem
Siddiqi and MNA Ijaz Shafi were not comfortable with Governor Moin
Haider and had been demanding the prime minister to replace the
latter with someone else.
"The prime minister believes that someone who is non-controversial
and does not belong to any political party should be appointed as
the new governor and as such the name of Mr Mamnoon was considered
for the slot. He is considered to be a "thorough gentleman", the
spokesman said.
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990618
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Admits losses along LoC: Delhi puts navy on high alert
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SRINAGAR (Occupied Kashmir), June 17: India pounded at freedom
fighters with heavy artillery attacks and air strikes in the
occupied Kashmir on Thursday and announced its navy was on high
alert in the Arabian Sea to counter an alleged Pakistani naval
build-up.
Indian naval chief Sushil Kumar told a news conference on board the
ship INS Delhi, docked in Bombay, that India's eastern fleet had
been redeployed on the western coast to counter any offensive.
"They are preparing for action and hence it is imperative for the
Indian navy to prepare itself to prevent any surprises at sea,"
Admiral Kumar said.
Admiral Kumar stressed that the Kashmir conflict "could spill over
to the seas" and termed the Mujahideen's action in Indian side of
the LoC a "well-planned aggression."
The navy chief earlier told the Times of India daily that naval
troops were "in a state of very high alert since June 11.
"Although it has currently adopted a defensive posture, it is in a
position to launch an offensive at short notice," the newspaper
quoted him as saying.
When asked by the newspaper how he rated the Pakistan navy's
capability, Kumar said he believed it was fatal to "underestimate
an opponent" and that "anticipation and team work" were
instrumental in gaining victory.
"The idea behind bringing our forces to the western theatre is to
bring together our maximum combat capability," he said. "When the
army and air force are fully involved in Kargil there is a
possibility the situation could spill over into the sea," Kumar
said.
"Should there be any misadventure at sea we would be then in a
position to unleash an adequate retaliatory strike. We have built
adequate combat power at this location," Kumar said. He alleged
that there was a build-up on the Pakistani side as well. "They have
made certain deployments. Certain units of theirs have been put to
sea in certain tactical locations."
To a question about reports that Pakistan's navy was likely to be
fitted with nuclear weapons, Kumar said: "There have been some
statements that the Pakistan navy will get nuclearized...all our
front-line combatants are very well equipped to absorb and survive
a nuclear strike at sea. They are able to transit through an area
of nuclear fall-out. In other words we are very well prepared."
Besides, army spokesman Bikram Singh said that fierce fighting was
going on in Tololing in northern Indian-held Kashmir where Indian
troops had "secured a foothold."
"In the artillery and mortar shelling that preceded the attack
eight enemy soldiers were killed and nine wounded. An Indian major
also lost his life," Singh claimed, adding that "the enemy is
fighting a retrograde battle. We have made a dent. It will take
some time. We are pushing them back."
He alleged that Pakistan had targeted Indian areas in the Keran and
Poonch sectors with artillery. Air force spokesman Group Captain
Ganesh said air strikes continued in the Mushko area and the
strikes were "accurate."
"There has been most telling damage. In additional air strikes in
the other areas of Mushko we targeted enemy's logistic and supply
camps. We are confident that the enemy has suffered heavy losses,"
Ganesh claimed.
"They cannot withstand such losses for very long. The effectiveness
of these strikes will be seen in the days to come," he added.
Military sources reported heavy artillery shelling in Kargil sector
and the conflict zones of Uri and Gurez, in northern Indian-held
Kashmir near the LoC.
Brigadier Arun Chopra told reporters here that Indian forces had
recaptured "five strategic positions" in the Drass region. Chopra,
however, admitted that between 800 and 900 Mujahideen were still
holed up in Indian side of the loC - more than a previous estimate
of about 600, despite several casualties on the Pakistani side.
He claimed that between 350 and 400 freedom fighters had been
killed so far in the offensive that began last month. "Presently
eyeball-to-eyeball fighting is going on at 5,190 meters at the most
strategic height and soon we will recapture this also," he said.
New Delhi claims to have recaptured nine of the 29 peaks occupied
by the Kashmiri Mujahideen. Military sources said "we are trying to
reclaim the Marpola peak. "We have been able to take back the lower
mountains, but the higher ranges still elude us."
An official said "the headquarters of an Indian mountain division
at Matayan, near Drass, has been destroyed in Pakistani artillery
shelling late Wednesday with extensive damage to stores and an
ammunition depot."
"The shells were fired from Tiger Hills, which the army claims to
have completely encircled," the source said. "We have reason to
believe that the supply lines and routes to Pakistan are basically
intact."
Control of the peaks is vital as they overlook a 400-km highway
which is a lifeline to Indian soldiers holding the strategic
21,500-foot high Siachen glacier.
An air force spokesman in New Delhi said aerial bombardments were
continuing. "Our strikes have gone through," he said, adding that
helicopter gunships were "being used selectively."-AFP/Reuters
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990617
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Budget proposals 1999-2000: Balochistan unveils Rs5.52bn PSDP
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Saleem Shahid
QUETTA, June 16: Balochistan has proposed Rs5.52 billion for its
Public Sector Development Programme (PSDP) for the fiscal year
1999-2000.
According to budget documents, government will spend about 63 per
cent of its development budget on the completion of on-going
schemes while only 37 per cent will be available for new projects.
The Finance Minister Syed Ehsan Shah said in the assembly during
his budget speech that the allocation announced in the new year's
budget for PSDP will be around 40 per cent more than the current
year's PSDP. Of the 306 development schemes, 199 are on-going
schemes. Only 107 new schemes will be implemented.
Out of these schemes 48 are in Social action programme (SAP) and
258 schemes are in Non-SAP sectors with financial outlay of
Rs1695.219 million (FPA Rs2127.186 million) respectively.
Block allocation have been made for two schemes, including priority
schemes of Rs15.000 million and "Completion of Incomplete Schemes"
of Rs35.000 million. In addition a block allocation of Rs215.000
million for public feed-back programme has been earmarked.
Education sector has been given top priority in 1999-2000 budget
and major share of the development finances have been kept for the
projects/schemes that have direct bearing on the economic growth
and prosperity of Balochistan. Priority sectors other than
education will be roads, public health engineering, water,
agriculture and health.
In the new budget almost 26.45 per cent of the PSDP has been
allocated for education sector. In the non-SAP sector 39 schemes
are planned to be executed. The non-SAP sector has been allocated a
total of Rs231.292 including an FPA of Rs85.000 million.
The SPA sector has 13 on-going schemes for which Rs1228,874 million
has been earmarked for SAP including an FPA of Rs1115.414 million.
Out of 13 SAP schemes, 3 schemes would be completed during 1999-
2000.
The health sector programme continues to place emphasis on
provision of primary health care for improving effectiveness of
health care programme.
For the year 1999-2000 the Balochistan government has included 19
SAP schemes which also include 16 on-going and 3 new schemes. These
schemes would executed with the provision of Rs87.857 million
including an FPA of Rs35.250 million, percentage allocation for
health sector is around 3.72 per cent.
One of the major factors behind under development of Balochistan is
the lack of adequate economic infrastructure including appropriate
road network. This only render remote areas of Balochistan
inaccessible but also increases the cost of development schemes.
During the year 1998-99 an amount of Rs1077..821 million including
an FPA of Rs672.716 million were allocated for 72 schemes involving
improvement and construction of roads. Out of the total of 72
schemes, 38 were on-going and 34 were new. The main thrust was on
completion on-going schemes and 7 roads were completed in the
province.
Provincial government will provide an amount of Rs1015.588 million
including FPA of Rs640.000 million which is 18.39 per cent of the
total allocation of PSDP.
In the physical planning and housing sector, the provincial
government aimed at increasing housing stock by regularizing and
improving Katchi Abadies.
The major goal of policy and planning in water sector continues to
be that of uplifting of agro-bases economy by maximizing production
through progressively increasing surface water supply, installation
of tubewell in public as well private sector, improving existing
management practices using latest technologies available and
protecting land from floods.
In the fiscal year 1999-2000 budget Rs649.882 million has been
allocated for the water sector, including an FPA of Rs450.000
million for 21 schemes, 18 on-going and 3 new. Five schemes were
completed during the year 1998-99.
The 1999-2000 PSDP has provided 15 schemes including 11 on-going
and 4 new with a total allocation of Rs994.641 million including
FPA of Rs794.533 million. It is 18 per cent of the total PSDP.
Some important projects which will be implemented during the
financial year 1999-2000 are BCIAP, NDP, flood protection sector
phase II and water resources development with construction of delay
action dams with financial assistance of JICA.
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990617
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BBC film exposes Sharif family's corruption: Benazir
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Correspondent
ISLAMABAD, June 16: Opposition leader Ms Benazir Bhutto on Tuesday
said that Nawaz Sharif and his family could no longer cover up
their corruption, money-laundering and ill-gotten wealth kept in
foreign bank accounts.
According to a statement issued here by PPP media cell, Ms Bhutto
said the BBC documentary had exposed the Sharif family's corruption
internationally.
The documentary: "From Pakistan to Park Lane via Illford", a
special investigative report by BBC correspondent Steve Bradshaw,
aired on June 5 and 12 on BBC-2, reported that Nawaz Sharif and his
family had used elaborate money-laundering schemes and passport
fraud to purchase and hide two flats in London's exclusive Park
Lane district. The ownership of the two flats had not been reported
to the Pakistan election commission, which was illegal under
election laws.
The BBC report further said that the PPP had filed (references)
charges against the Premier Sharif and his family for money-
laundering.
"The investigative agencies and bureau are politically under the
control of the prime minister's secretariat and a sitting senator
of the ruling party and have prevented any proper investigation."
Ms Bhutto has charged that the investigations against her were
politically motivated to cover up the corruption of Mr Sharif, his
family and his associates. She has said that the judge who
convicted her is a close family associate of the Sharif family,
documentary said.
Prior to the airing of the documentary, the Nawaz regime undertook
a widespread attack on the press in Pakistan, arresting,
intimidating and jailing many reporters who had assisted the BBC
team.
"The Nawaz regime has made every attempt to silence the independent
and critical press in Pakistan. I hope that other media will
likewise turn their investigations towards the growing and blatant
abuse of power by the Sharif family. At stake is Pakistan's
democracy and our place in the community of civilized nations", the
PPP chairperson said.
Ms Bhutto said that since the PPP government was dismissed,
Pakistan had lurched from one crisis to another. There had been 11
nuclear devices detonated in the sub-continent, tests of missiles
capable of carrying nuclear warheads and fighting in the Kargil-
Drass sector of (Northern Areas) Kashmir.
She said the economy had suffered under the corrupt (Nawaz) regime.
"Every 12 hours a person in Pakistan is committing suicide because
he/she could not afford to live. The country defaulted on its loans
for the first time in its history and had to be bailed out by the
international donor agencies to the tune of $5 billion."
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990614
-------------------------------------------------------------------
It's an effort not to tax common man, says Dar
-------------------------------------------------------------------
Bureau Report
ISLAMABAD, June 13: Minister for Finance and Commerce Ishaq Dar
claimed here on Saturday that the government had succeeded in
giving a "tax-free budget" to the nation.
"I am very proud to say that the budget for 1999-2000 did not
contain any new taxes and as such it was a tax-free budget", he
added.
Talking to reporters in his chamber immediately after presenting
the budget in the National Assembly, Mr Dar said the government had
made an effort "not" to burden the common with fresh taxes.
He ruled out the possibility of having any mini-budget throughout
1999-2000. "I would not allow any mini-budget and you know I never
backed out of my commitments".
Asked how the government would meet its funding requirements
without imposing new taxes, specially when there were revenue
slippages, the finance minister said that many structural changes
had been made to deal with the issue.
Responding to a question, he said the government had set a 3.3 per
cent GDP budget deficit target for the next financial year. He was
confident that the new budget deficit target would be met as was
met for the current financial year. He said he would be holding a
news conference on Sunday morning to answer all kinds of questions
and to explain various issues.
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990614
-------------------------------------------------------------------
Abolition of zila tax to provide Rs100bn relief: Dar
-------------------------------------------------------------------
ISLAMABAD, June 13: Finance Minister Ishaq Dar has said that Octroi
and Zila tax has been abolished within the constitutional framework
and that it would post tax relief of Rs. 100 billion per annum to
the masses.
In the question and answer session at the post-budget press
conference here Sunday, Ishaq Dar said the federal government would
extend funds in advance to the provinces to nullify the adverse
impact of the abolished local taxes.
Withdrawal of octroi and Zila tax will, in fact, enhance the
purchasing power of the masses worth Rs. 100 billion, besides
protecting them from the harassment and inconvenience at the hands
of Zila mafia controlling this system.
"The total collection is Rs 19.5 billion per annum and the
resultant resource gap for local government institutions will be
met from sales tax collections by the federal government," he said.
The federal government is to contribute Rs. 13.3 billion of the
total resource gap, the rest to be pooled by the provinces. He said
the government had abolished these colonial regimes of taxes with
good intentions and in the larger interest of common man.
"These local taxes are being collected through 40,000 points and
the staff posted at these points used to extort money from common
man," he said and termed it as the "worst kind of bhatta collected
at gun point".
To a question, he said all the constitutional obligations were
fulfilled while eliminating this local tax and said that respective
provincial governments would also issue necessary notifications.
He said the corporation and the Zila council staff engaged in tax
collection would be accommodated in other sections in their
respective organisations.-APP
===================================================================
BUSINESS & ECONOMY
990616
-------------------------------------------------------------------
Rs37bn debt raised thru $ bonds in '98-99
-------------------------------------------------------------------
By Our Staff Reporter
KARACHI, June 15: The special US dollar bonds launched after the
freezing of foreign currency accounts in May 1998 raised the net
capital receipts of the government by Rs 37 billion in fiscal year
1998-99.
Federal budget documents put the revised estimate of debt-raising
through these dollar bonds to Rs 37 billion which would enhance the
total permanent debt to Rs 23.40 billion in 1998-99 against the
original estimate of Rs 4.30 billion.
What leads to containing of permanent debt to Rs 23.40 billion in
spite of Rs 37 billion worth of debt accruing through dollar bonds
is debt retirement of Rs 14.77 billion in fiscal 1998-99. The
documents show that the debt retired included Rs 3.32 billion in
foreign exchange bearer certificates (FEBCs); Rs 2.75 billion in
foreign currency bearer certificates (FEBCs) and Rs 80 million in
dollar bearer certificates (DBCs). It was the freezing of foreign
currency accounts that led to the retirement of debt mobilised
through these instruments which remained no longer effective for
raising fresh debt after May 28, 1998.
According to the documents, the government also retired Rs 7.90
billion worth of permanent debt through repayment on maturity of
federal investment bonds (FIBs). The only other instrument after US
dollar bonds which was used to raise further debt were the
government bonds issued by state-run corporations that generated Rs
456 million worth of permanent debt in 1998-99.
Senior bankers say FIBs have lost their charm in debt market
because of low interest rates long before the freezing of foreign
currency accounts. Some of them say after the recent fall in
interest rates the FIBs can stage a come-back in the market but it
all depends on the government. FIBs of three and five year maturity
carry a fixed interest rate of 13 and 14 per cent and those of 10-
year maturity 15%. Bankers say these interest-rates were once
considered very low but now the lending rates structure is such
that FIBs of 3 and 5-year can be revived.
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990619
-------------------------------------------------------------------
Wealth tax laws to spur parallel economy
-------------------------------------------------------------------
Reporter
KARACHI, June 18: Wealth tax laws, instead of generating revenue
through official channels, would give an impetus to the underground
economy which is already growing at a much faster pace.
This was the unanimous view of the tax experts while speaking at a
post-budget seminar organized by Memon Professional Forum on Friday
at a local hotel.
Substantiating their view, the experts said when the Wealth Tax Act
1963, was promulgated about 25 years back, the underground economy
was having little presence, but thereafter it grew from 20 per cent
in 1973 to 51 per cent in 1996.
The experts further said the Wealth Tax Law has failed to net more
tax payers adding, today wealth tax assessees are less than 0.20
per cent of the population of the country. And the total revenue
under this head is not more than 1.0 per cent of the total tax
collection.
"The law has failed to check the concentration of wealth in few
hands and an important class of the society is still not
contributing enough tax under this head", they lamented.
Above all, the experts said, the law has not been properly
implemented in it's true spirit and letter. Despite the fact that
FPCCI and all tax bar associations have been suggesting to abolish
wealth tax, the demand has landed on deaf ears. Abdul Qadir Memon,
tax expert who specially delivered his paper on wealth tax while
discussing the Finance Bill 1999, said that the proposal to enhance
the limit of income from Rs100,000 to Rs200,000 for declaring
wealth tax is a positive step as it will help assessee to declare
higher income.
He lauded the proposal for reducing appeal fee which he said is in
conformity to the Prime Minister's 'Sasta Insaf.' Similarly, he
appreciated the Finance Bill 1999 seeking to introduce new clause
whereby, exemption has been granted to the houses built on land
area not exceeding six marlas (150 square yards) or apartments with
covered area not exceeding 1200 square feet for five years
constructed under Prime Minister's Programme for Economic Revival.
Referring to Advance Wealth Tax, Abdul Qadir Memon, said that it
should be brought in line with Section 53(2) of the Income Tax
Ordinance, 1979, as during the year an assessee could have sold his
asset or gifted it away resulting in reduction of his net wealth.
However, he was critical about the high rate of 250 per cent
penalty for concealment of wealth and proposed that it may be
reduced to 100 per cent in line with penalty for concealment of
income under section 111 of IT Ordinance.
Memon also urged upon the government to raise the exemption limit
of wealth from Rs1 million to Rs3 million. He further said that
dead assets such as investment made in industrial units which have
become sick, shares of companies not declaring dividends etc should
be exempted from wealth tax or properties which are encouraged and
are not in possession of assessees.
He also suggested that self-assessment of wealth tax returns should
be automatically accepted and only in case the department has
documentary evidences for under-valuation or concealment of assets
only then should the assessee be issued show-cause notice and the
case processed under normal law.
Former KCCI president Hanif Janoo was the chief guest and President
Memon Professional Forum, Hanif S. Kalia delivered a welcome
address. Other speakers, S. Shabbar Zaidi and Syed Masoud Ali Naqvi
read their papers on sales tax and income tax, respectively.
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990618
-------------------------------------------------------------------
Confusion over budget anomalies
-------------------------------------------------------------------
Reporter
KARACHI, June 17: Confusion prevails over some measures announced
in the budget 1999-2000 to boost capital market, and needs to be
clarified.
First anomaly is about the mutual fund industry which has been
exempted from 10 per cent withholding tax in the budget speech, but
the Finance Bill carries no such amendment. "There seems to be
slip-up somewhere. I am sure CBR will come up with some
clarification", said Yasin Lakhani, chairman, Karachi Stock
Exchange when asked about the anomaly.
He said Modaraba Association was taking up the matter with the
government to rectify that anomaly.
The second confusion is about the definition of reserve funds which
companies maintain for multiple purposes.
The government has levied a 10 per cent tax on the reserves of
those companies whose reserves rise over 50 per cent of paid-up
capital, but they don not pay dividends. "What is the definition of
the reserve fund under this law, needs to be clarified because some
companies maintain reserves for the payment obligations, or else a
company may have revaluation reserves on its books etc.", said an
expert.
"I think CBR needs to clarify this point because some traders feel
that there is a confusion, but I am clear in mind," said Lakhani,
adding that what was implied in the law was about the free reserves
which were not part of the premium and capital.
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990617
-------------------------------------------------------------------
Govt planning set-up on withholding tax
-------------------------------------------------------------------
Parvaiz Ishfaq Rana
KARACHI, June 16: The government is planning to introduce a new
set-up of tax collectors by creating a separate body of director
general for withholding tax.
The Finance Bill, 1999 presented by the finance minister before the
National Assembly on Saturday, intends to further enlarge the scope
of the presumptive tax/withholding tax regime.
Sources said, the objective of the proposed amendments, according
to tax experts is to remove the monitoring of withholding tax from
the revenue officer to a new specialized set of officers.
Consequently, the proposed amendments in various clauses of Section
2, 3 and 4 are meant to prescribe the jurisdictions and powers of
director general of withholding tax and his junior officers
including director, additional director, deputy director, assistant
director and auditor.
Experts believe apparently, these officers would be entrusted with
the monitoring and related matters connected to withholding tax.
Qazi Anwar Kamal, tax practitioner said that statistics reveal that
more than 80 per cent of the income tax is being collected under
various provisions of tax at source and the Federal Legislature
intends to focus its efforts on monitoring of tax deducted at
source.
He further said that if conferring jurisdiction to these officers,
and the other officers including assessing, survey and salary
officers is excluded - and the assessees saved from the botheration
of monitoring by different zones and officers - then only will
these amendments bring about positive impact and would further be
beneficial to the tax collector and the assessees.
Similarly, tax experts are also opposing the proposed amendments
being made under sub-section 3 of Section 4AAA for out-sourcing of
survey and audit of withholding tax.
They feel that by these proposed amendments, the Federal
Legislature once again intends to out-source income tax surveys and
audit of withholding tax to a private agency, firm or company.
These experts say that through Finance Act 1996, a controversial
section 4A was incorporated in the Income Tax Ordinance, 1979
authorizing any private agency so appointed by the Central Board of
Revenue to carry out the assessment and collection of taxes.
However, this amendment was opposed tooth and nail by almost all
the bar associations of the country and it was largely due to this
opposition, that the Peoples' Party government was not able to
appoint some of its members under this section.
Subsequently, this section was substituted vide Finance Act 1998 by
a new section which empowered the Chartered Accountants to conduct
the audit of any person. Even, the out-sourcing of tax-audits of
Chartered Accountants under Section 4A have been challenged in the
Sindh High Court and the Lahore High Court and the matter is
subjudice.
"It seems, that the PML government is also planning to assist their
members and these audits will be handed over to companies, this
time wearing a PML badge," another tax expert said.
Tax consultant, Ali Rahim said, "we fail to understand, why after
establishing a full-fledged department of tax audit and the
existence of a survey department, there is a necessity for out-
sourcing survey and audit of withholding tax."
Younus Rizwani Sheikh, another expert said we had pointed out last
year that the sub-section 2 of proposed Section 4A empowers the
firms of Chartered Accountants to enter into any premises belonging
to, whether occupied by the assessee or not. He feels that this is
against the fundamental rights guaranteed under the constitution.
Muhammad Ather Saeed, a law expert giving his opinion on the
proposed amendment, said that the same powers have been granted to
private agency, firm or company under sub-section 3 of Section
4AAA, and we feel that it was unjustified.
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990616
-------------------------------------------------------------------
Supplementary budget: Approvals of Rs1bn sought
-------------------------------------------------------------------
Bureau Report
PESHAWAR, June 15: NWFP Chief minister Sardar Mehtab Ahmed Abbasi
in the provincial assembly here on Tuesday presented over Rs one
billion supplementary budget of the province for the 1998-99
financial year.
The demand for supplementary grants of Rs1,063,475,890 for the
1998-99 financial year was recommended to the provincial assembly
in pursuance of article 124 of the constitution read with clause
(3) of article 122.
In the 1998-99 financial year, the NWFP government had anticipated
to raise Rs33004m as total revenue receipts which were later
revised to Rs31726.299m after the federal government lowered by
Rs1277.7 million the province's share of Rs16018.598 million from
the federal divisible pool's transfers and WAPDA did not pay the
full amount of Rs10.466 billion on account of net hydel profits.
The chief minister, who is also holding the portfolio of finance
minister claimed that in spite of immense financial constraints,
his government managed to avoid extra expenditure due to financial
discipline ensured at all levels of the government.
Out of the total Rs1 bn supplementary demands for grants, a combine
chunk of Rs59,513,790 was recommended to the provincial assembly
for approval on account of technical supplementary.
The chief minister said that supplementary demand could not have
been included under the revenue expenditure budget for the 1998-99
financial year at the time of the presentation of the provincial
budget due to technical reasons.
The Rs59,513,790 supplementary grants made to certain provincial
government departments to meet their imperative and unavoidable
expenses include a sum of Rs 25.175 m paid to the Peshawar High
Court (Administration of Justice), Bar Associations and expenditure
incurred on the appointments of new judges; Rs 16.024 m amount was
provided to the Jails department on account of expenses incurred as
hospital charges and dietary charges; C & W department was given
additional amount of Rs 5 m for the repairing of Governor House; Rs
5 m were paid on account of stamps' printing charges to the
Security Printing Press and commission thereon to the Post offices;
Rs 4.144 m were provided to the NWFP Excise and Taxation department
for onward release to PRAL (Pakistan Revenue Automation Limited)
for the purchase of computers and other necessary expenditure; Rs
3.853 m were spent on general administration (governor house, S & G
A D, travelling allowance to secretariat employees, telephone
charges, petrol and stationary charges).
Apart from this amount, a Rs 200 m supplementary demand for grant
was recommended to the provincial assembly for approval on account
of Current Capital provided to the Sarhad Tourism Corporation and
Sarhad Industrial Development Board.
The amount, said the chief minister, had been given to the two
provincial institutions as temporary loan.
Out of the over Rs 1 bn supplementary budget, major sum of Rs
983.962 m was spent on the provincial Annual Development Programme
(ADP) for the 1998-99 financial year.
That helped the provincial government to raise the total size of
the provincial ADP from Rs 6072.350 m projected at the start of the
current financial year to end up at Rs 7771.653 m.
This could have only been possible with the much higher than the
stipulated payments made by the foreign donor agencies.
The foreign component of the 1998-99 fiscal year's ADP which had
initially been projected at Rs 2.15 bn ended up at Rs 3.965 bn
after the provincial government allocated full amount of Counter
Part Funding to the foreign funded projects.
The Rs 983.962 m supplementary expenditure incurred on ADP schemes
included a sum of Rs 279.367 m spent over and above the amount that
had initially been stipulated for the education sector, Rs 150.136
m for health, Rs 221.629 m for the construction of roads, Rs
330.391 m for irrigations schemes, Rs 0.157 m for public health
sector, Rs 2.282 m for Social Action Programme.
The Rs 150.136 m additional amount provided to the health sector
was utilized for the purchase of essential items for the medical
colleges of Swat and D.I.Khan, family health project, Mardan
Medical Complex and to support the under construction development
projects at Swabi and Karak districts.
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990616
-------------------------------------------------------------------
Rs35.78bn NWFP budget
-------------------------------------------------------------------
By A.S. Yousufi
PESHAWAR, June 15: NWFP chief minister, Sardar Mahtab Ahmad Khan,
also holding the finance portfolio, presented a Rs 35,781.373
million budget for the year 1999-2000 in the provincial assembly on
Tuesday. The budgetary estimates show a surplus of Rs 288.400
million on revenue account. Very minor taxation adjustments have
been incorporated in the budget.
Against a projection of current revenue receipts of Rs 35,781.373
million under four different heads, the total current expenditure
for the next financial year under seven heads has been estimated at
Rs 35,492.973 million leaving a surplus of Rs 288.400 million.
The largest single source of income of an estimated sum of Rs
16,867.703 million, forming 47.14 per cent of total outlay, will be
under the head of federal tax assignments, followed by Rs 11,624
million or 32.49 per cent of the total, receivable on account of
net profits from hydel profits. Another major head of income during
the next financial year is special grant/subvention from the
federal government which is estimated to yield Rs 4,078.000 million
which forms 11.40 per cent of the receipts.
Other revenue components are: Rs 3,211.670 million from
provincial receipts which include receipts under heads of tax to
the tune of Rs 1,705.423 million, non-tax receipts of 2,231.377
million, interest and dividend of Rs 105.067 million, less Rs
830.197 million projected to be absorbed by net capital receipts.
The sum total of current revenue receipts has, thus, been estimated
at Rs 35,781.373 million.
On the expenditure side major financial allocation of Rs 16,384.161
million, or 46.16 per cent of the total, has been made available to
the social service departments. This is followed by debt servicing
amounting to Rs 7,476.068 million, economic services expenditure of
Rs 3,592.198 million, and expenses on civil administration to the
tune of Rs 3,093.742 million.
A large chunk of Rs 4,819.394 is allocated for miscellaneous,
relief and wheat subsidy. The total current revenue expenditure has
been estimated at Rs 35,492.973 million leaving a budgetary surplus
of Rs 288.400 million.
As in the previous years, the largest single allocation of Rs
10,266.240 million has been made to education, followed by health
which has been allocated Rs 2,650.427 million. The pensions of
provincial government employees are estimated to consume Rs
2,797.711 million for which the government has already created what
is known as special pension fund to progressively reduce monetary
burden on the provincial government in coming years.
In his budget speech on the floor of the House, Sardar Mahtab
announced adoption of the federally announced relief to
provincial government's employees and pensioners of 20 to 25 per
cent effective from the next fiscal. He, however, said that the
cost of the implementation of the relief measure would cost around
Rs 2.6 billion for which resources would have to be mobilised. He
said that the federal government would also be requested to provide
funds on this account. In addition, he said, the government had
also enhanced the emoluments/salaries of those government
employees getting salaries from Rs 1,500 to Rs 1,800 with effect
from May 1, 1999 who were being paid fixed monthly salaries. The
government would also process proposals for social security of such
employees, he said.
The chief minister announced provision of tractors on subsidised
rates in order to encourage mechanised farming in the province. To
boost agriculture production, he said, the government had decided
to introduce scheme of subsidising tractors to the extent of Rs
100,000 per tractor. He said that during the next fiscal year 500
tractors would be provided to the farmers through balloting.
Sardar Mahtab assured the House that despite missing the current
fiscal's targets announced by him back in 1997, his government had
been able enter the era of development, economic stability, good
governance, institutional reforms, beside other successes. He also
expressed satisfaction over financial discipline which, he
claimed, had yielded good results saving money for development, a
measure acknowledged at different forums. It had enabled the
province to maintain a positive cash balance despite heavy
shortfall in transfer of federal resources in the shape of shared
taxes and net hydel profits. Another feature of good financial
management was the increase in provincial receipts which had
increased by over Rs one billion during 1998-99 as compared to the
previous year, he told the House. "This fact was also acknowledged
by the NFC monitoring committee," he pointed out.
In order to add to the efficiency to Sarhad Hydel Development
Organisation (SHYDO) to generate more power fully utilising
province's own natural resources and selling electricity like WAPDA
was doing, the chief minister proposed to give SHYDO an autonomous
corporate status so that it became self-sustaining.
Sardar Mahtab also announced poverty alleviation measures which, he
said, had been accorded high priority. For the time being these
measures included issuance of loans to poorer families for small
business and improvement of skills by the provincial public sector
Bank of Khyber which, he said, had so far provided small loans
amounting to Rs 286.5 million. Another supportive measure had
adopted through the Sarhad Rural Support Corporation which was
providing micro credit to the poorest section of the community
through community mobilisation. He said the provincial government
proposed to support these measures through allocation of Rs 100
million to finance micro credit schemes.
REVISED ESTIMATES: Summarising revised estimates for 1998-99,
Sardar Mahtab informed the Assembly that on the revenue side
against budget estimates of Rs 33,004 million, the estimated gross
size of revised estimates of receipts was Rs 31,726.299 million.
However, the actual revenue receipts would be in the vicinity of Rs
27,260.299 million, he said. He assured the Assembly that the
expenditure would be restricted to the extent of available
resources. He said that a sizable increase of 1,346.330 million in
the total provincial revenue had been recorded during the current
financial year. As against revised estimates, receipts of Rs
25,913.969 million in 1997-98, the estimated receipts during 1998-
99 would be Rs 27,260.299 million, an increase of 5.2 per cent.
However, there would an expected resource shortfall of Rs 4,466
million on account of net hydel profits, he admitted. He assured
the House that the matter was being hotly pursued with the federal
government and WAPDA hoping the efforts would produce satisfactory
results. He said that the shortfall would not be allowed to affect
provincial finances which would be managed in an effective manner.
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990615
-------------------------------------------------------------------
CBR issues procedure for collection of CED on ads
-------------------------------------------------------------------
Correspondent
ISLAMABAD, June 14: The Central Board of Revenue has issued
procedure of collecting central excise duty on advertisements
published in newspapers, journals and periodicals.
The special procedure notified under circular 1 (6)-CEB/99, on June
12, says that any person, firm or corporation involved in
publishing advertisement in newspapers, journals or periodicals,
will have to pay CED leviable on advertisements published.
The duty will be paid on the total amount of charges for any
advertisement, without any statement or deduction whatsoever.
"Such a person will not be liable to pay the duty if an
advertisement is not published as a result of cancellation of a
contract. He will pay the duty due for a month by the 15th day of
the second month and furnish the proof to the collector of central
excise in whose jurisdiction its head office is located by the end
of the same month.
"The said person will maintain a serially-numbered bill-of-
charges-book, so bound that no page can be removed without being
torn and for each transaction a bill of charges out of such book
will be issued. The original copy of the bill-of-charges will be
given to the person from whom charges for an advertisement
published have been received and the duplicate copy thereof will be
retained by the said person, to be preserved for a period of five
years for inspection and audit."
According to the new procedure the person or the firm will have to
maintain a daily account of advertisements in proper form, showing
therein the number and date of invoice, title of an advertisement,
language, amount billed and amount of duty involved.
A monthly statement will be submitted within 15 days after the
close of each month to the concerned office in the proper form
showing details of the total amount billed and amount of the duty
involved.
Any person or firm involved in providing or rendering services of
publishing of advertisements will have to obtain a licence. In case
a newspaper, journal or periodical is published from more than one
place, a separate licence for each of such place will be obtained.
The circular says in case the duty is not paid by the due date, the
said person or firm will, in addition to the payment of duty, will
also be penalised which may extend to Rs10,000 or 10 times of the
duty involved, whichever is higher.
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990619
-------------------------------------------------------------------
KSE 100-share index falls by 37 points
-------------------------------------------------------------------
Reporter
KARACHI, June 18: Stocks on Friday were back in the minus column as
investors hastened to take profits on the blue chips counters
disappointed by reports that Hub-Power corruption case has been
transferred to the Ehtasab Bureau by the government. The KSE 100-
share index fell 2.7% or 37 points at 1,052.19.
'The transfer of the case could well prove a protracted battle of
wits further aggravating the long-drawn tariff cut issue with the
Independent Power Producers (IPPs)', stock brokers fear. The sudden
change of the governor of Sindh also worked against the sentiment.
The recent positive developments after the two visits of the Hubco
chairman to settle the tariff issue have raised hopes of a positive
outcome but the current official move points to something else,
they added.
'Its immediate negative impact is well-reflected in share value of
Hub-Power, which fell by Rs 1.55, largest single-session fall in
the mega issue on a massive activity 60m shares'.
KSE 100-share index fell 36.81 points or 2.7% at 1,052.19 as
compared to 1,089.00 a day earlier, reflecting the distinct
weakness of both the mega issues, PTCL and Hub-Power.
President Clinton's intervention might still have to manifest
itself in a bigger way. The status quo maintained by Pakistan and
India on the international borders encouraged bargain-hunters and
speculative traders to cover positions at the lower levels at least
in the pivotals to realise quick gains.
'The fears of war might be receding each day but the situation is
still fraught with high risks', said an analyst adding 'investors
must await further developments at least by the next week before
making fresh commitments'.
The corporate friendly budget could only be at work after the
danger of war is averted, although some of the leading brokerage
houses are planning to re-enter the market guided by the new fiscal
incentives, they added.
'The absence of panic, which gripped the ring early in the week
reflects that something positive is going on behind the scene on
the international level to defuse the current tension on the
Kashmir border', said a leading KSE member.
He said next week could be very crucial for the market as its
direction will largely be guided by external factors, notably news
from Kashmir.
Bulk of the selling was confined to the energy sector apparently in
sympathy with steep decline in Hub-Power as leading among them
including PSO and Shell Pakistan have a stake in as a corporate
members.
National Refinery, which posted sharp gains over the last two
sessions on news of its expansion plan, PSO, and Shell Pakistan
being the largest losers falling by Rs1.70 to Rs4.30.
Other notable losers were led by Yasir Spinning, Dewan Salman, and
Dadex, which suffered declines ranging from Rs1.05 to Rs3.25, other
falls being fractional.
Pak Datacom, Exide Pakistan, 9th ICP and Orix Leasing were leading
among the gainers, which posted gains ranging from one rupee to
Rs2.00.
Trading volume rose further owing to massive selling in Hub-Power
and PTCL rising to 143m shares as compared to 139m shares a day
earlier as losers forced a strong lead over the gainers at 86 to
20, with 53 shares holding on to the last levels.
===================================================================
SPORTS
990613
-------------------------------------------------------------------
Wars
-------------------------------------------------------------------
Ardeshir Cowasjee
BEFORE me lies the facsimile of the front-page of the New York
Times published on Monday June 29, 1914, claiming, as it still
does, that it prints "All the News That's Fit to Print".
The leading story's headline: "Heir to Austrian throne is slain
with his wife by a Bosnian youth to avenge seizure of his country."
Sub-headlines read: "Francis Ferdinand shot during state visit to
Sarajevo;" "Archduke saves his life first time by knocking aside a
bomb hurled at his Auto;" "Slain in second attempt;" "Lad dashes at
car as the royal couple return from Town Hall and kills both of
them;" "Heir warned not to go to Bosnia, where populace met him
with Servian flags;" "Aged Emperor is stricken - Shock of tragedy
prostrates Francis Joseph - young assassin proud of his crime."
(Messages from Sarajevo)
Sets of headlines from the NYT, July 29, 1914 : "Austria formally
declares war on Servia, Russia threatens, already moving troops,
peace of Europe now in Kaiser's hands;" "Notice sent to the powers
of the opening of hostilities;" "Servian vessels seized, sharp
fighting begins along the River Drina on the Bosnian frontier;"
"Montenegrin and Serb armies to invade Bosnia and start a rebellion
there;" "Grey's peace plan fails" [he was Britain's foreign
secretary, as is Sartaj Aziz ours]; "Kaiser declines to join in
conference to exert pressure on Austrian ally;" "But reply is
conciliatory;" "And London still has faith that his influence will
avert general conflict." (Messages from London) "Czar's forces mass
on Eastern border, his capital expects war and counts confidently
on England's aid;" "Mobilisation order ready, German official says
its issue would mean launching of Kaiser's army." (Messages from St
Petersburg) "Austrian Emperor to take command at Vienna
headquarters;" "War fear at capital;" "Crowds cheer outbreak of
hostilities and demonstrate at friendly embassies;" "Outbreak of
food riots;" "Prices soar as hostilities are declared and the
government steps in to regulate them;" "Manifesto from Emperor;"
"Forced to grasp the sword, he says, to defend the honour of his
monarchy;" "France fears a Great War;" "Army moves to the
frontier." (Messages from Vienna)
Headlines from the NYT of August 2, 1914 : "Germany declares war on
Russia, first shots are fired; France is mobilising and may be
drawn in tomorrow; plans to rescue the 100,000 Americans now in
Europe;" "England hesitates what course to take;" "Grey wants to
throw the weight of great Navy at once in favour of Russia and
France." (Messages from London). "France orders mobilisation after
Germany asks her intentions;" "Delcasse War Minister;" "Clemenceau
in Cabinet" [the Tiger roared]; "President and Cabinet issue a
manifesto to French nation, plain words to Germany - 'You are
mobilising, we know it,' says Prime Minister to German Envoy;"
"Poincare orders mobilisation telling France it is not war yet."
(Messages from Paris).
Now, who in New York who had bought the NYT on the morning of June
29 for one cent or others who had bought it elsewhere for two cents
could have dreamt that what they had read that day could lead to a
world war which began on August 3 and would last for four long
years, with such battles as were fought at the Somme, Ypres,
Verdun, and Paschendaele where in one day's battle over 100,000 men
could be killed or wounded. Verdun lasted ten months during which
700,000 men fell, its aim being less to defeat the enemy than to
bleed him to death.
Between June and August 1914, many believed that peace in Europe
lay in the Kaiser's hands, but Wilhelm II - vain, pompous and
surrounded by sycophants - was at heart a war-monger. He took his
nation to war, made it lose, impoverished and humiliated his
people. Years later writing about his 'Great Contemporaries,'
Churchill wrote on Wilhelm: "Imagine yourself brought up from
childhood to believe you were appointed by God to be the ruler of a
mighty nation ..... 'You are,' they say, 'the All-Highest, ..... It
is for you to choose the Chancellor, the ministers of State, it is
for you to choose the chiefs of the Army and Navy. There is no
office, great or small, throughout the Empire from which you cannot
dismiss the occupant. Each word you utter is received by all
present with rapture, or at least respect. You have but to form a
desire, and it is granted ..... Should you weary of the grosser
forms of flattery, far more subtle methods will be applied.
Statesmen, generals, admirals, judges, divines, philosophers,
scientists and financiers stand eager to impart their treasured
knowledge and to receive with profound gratification any remark
upon their various spheres which may occur to you. Intimate friends
are at hand to report day by day how deeply impressed this or that
great expert was with your marvellous grasp of his subject. The
General Staff seem awed by your comprehension of the highest
strategy ..... and this goes on day after day and year after year
for thirty years."
Then, Churchill poses a question to his 'gentle reader': "Are you
quite sure, you would have withstood the treatment? Are you quite
sure you would have remained a humble-minded man with no
exaggerated idea of your own importance, with no undue reliance
upon your own opinion, practising the virtue of humility, and
striving always for peace?"
We jump thirty-three years to when Jinnah made Pakistan. Since then
we have gone on three 'jehads' of our making, or, as some may say,
which were forced upon us. These three ventures caused us to lose
143, 998 sq km of territory and gain but added humiliation, adding
to the despair and distress of our people.
Today we find that some 500 men, having trained themselves in the
art of war before falling from the heavens and landing upon a
hilltop near Kargil in Kashmir on the other side of the line. And
we find the Indians blaming us for having entrenched them there.
Noises about 'jehad' are again being heard and the fear of an
'escalation of conflict' stalks the land. But what have we to fear?
We have Prime Minister Nawaz Sharif, surrounded by sycophants as
was the Kaiser in 1914, and to aid him we have as supreme commander
of our armed forces President Rafiq Ahmad Tarar.
Eighteen years ago Nawaz Sharif was picked up from his foundry by
my friend Lt General Ghulam Jilani and converted into a politician.
Jilani, who died last week, did us a good turn when, as Bhutto's
favourite chief of the ISI, he kept his COAS, General Zia-ul-Haq
informed of the destruction planned by Bhutto and gave him enough
warning for him to act as he did on July 5 1977.
It was during Jilani's time at the ISI that Bhutto, by an executive
order, created a political cell to execute political dirty-tricks.
This cell, in 1990, disbursed some Rs.900 million of the people's
money (with whose permission and under what authority?) to Nawaz
Sharif and his cronies to help them gain power. We are still
waiting for the Supreme Court to establish who is responsible for
this act, but the court is not willing to dig out the truth, our
Chief Justice-designate, Saiduzzaman Siddiqui, having proclaimed
from the Bench that this is now 'history' and out of the domain of
the court (why? how?). He obviously holds so because Air Marshal
Asghar Khan has filed a petition questioning the disbursement.
Thus, the Supreme Court is not required to abide by its
constitutional obligation (Article 187) and do "complete justice."
Does he fear that his court will again be stormed by the ruling
party?
As governor of Punjab, General Jilani did much good for his
province, and for this he deserves to be remembered with gratitude.
Whilst discussing Nawaz Sharif's follies I often used to ask, 'What
sort of a man have you landed us with, General?' He would say,
'Someone had to be found to neutralize Benazir Bhutto and the PPP,
and we thought a businessman, uncorrupted by politics, might do
better, might help enrich the country and the people. That he
enriched himself and his family is unforgivable. But then we all
make mistakes.' Nawaz Sharif might now think that he has made
himself impregnable by destroying every institution that could have
stood in his way. He knows that he rides a tiger from which he
cannot dismount.
Many people ask how and when and who will make Nawaz Sharif fall. I
say, have faith in natural justice. Most of our prime ministers
have arisen from their beds in the morning not knowing that they
would not go to sleep in the prime ministerial bed that night - one
went to bed as prime minister and was awoken to be told that he had
been deposed.
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990618
-------------------------------------------------------------------
When silence is no longer a virtue
-------------------------------------------------------------------
Ayaz Amir
War is no more than a lethal argument, and, to be worth the
fighting, it demands a sane and profitable political end. - J. F.
C. Fuller:
The Second World War
EVER since the fighting in Kargil broke out, a section of the
national press, as always happens when the atmosphere heats up, has
been beating the drums of chauvinism. But many "responsible"
newspapers, and this goes for individual writers too, find
themselves caught in an embarrassing situation.
They are being pulled in opposite directions. Their judgment tells
them to cry out about the danger of war. Their sense of patriotism
tells them to suppress their true feelings and make a virtue of
restraint and silence. While this attitude is understandable, the
time may have come to speak up because it takes no exceptional
intelligence to see that with each passing day we are inching that
much closer to a war regarding whose purpose or utility the nation
remains wholly in the dark.
To put the most charitable construction on what's going on in the
Kargil sector, if this was the opening move in a bid to liberate
Kashmir by force, something could be said in its defence. It would
be seen as part of a larger scheme of things even if this larger
scheme was decried as foolish or foolhardy. But unless there are
higher secrets yet to be revealed, the fighting in Kargil appears
to stand all by itself.
While it puts in sharp relief the courage and tenacity of the
fighters facing the Indian army, it seems unconnected to a larger
objective, at least none visible to mortal eyes or none sustainable
over a period of time. In other words, what we are seeing is
heroism and tactical brilliance as ends in themselves; tactical
brilliance not tied to a strategic aim. This is folly of a
dangerous kind. While people are dying and war clouds are massed
thick on the horizon, few people are in a position to say why this
high-risk course is being pursued.
To voice these doubts does not mean that we should hide behind
weakness or despair. The people of Pakistan will never shirk the
danger of war if they believe the cause to be worthy or the
survival of the country to be at stake. It only means that we
should keep our feet on the ground and not repeat similar blunders
we have made in the past. Indeed it is amazing how the present
fighting in Kashmir is eerily reminiscent of the events of 1965.
Then too our politico-military command thought that Pakistan could
seek military advantage in Kashmir without risking a war in any
other theatre. The foolishness of this assumption was quickly
exposed. If Pakistan was still able to avert a military disaster,
it was because of the grit of its soldiers and junior officers and
not the brilliance of its senior commanders.
Even in the present situation the freedom fighters occupying the
Kargil heights are giving a superb account of themselves. It takes
some doing for a few hundred irregular commandos to face up to the
might of the Indian army. Our soldiers manning the Line of Control
too are in high spirits and prepared for the worst. The bravery of
an army, however, is of no account when the higher direction of war
is faulty or based upon unrealistic assumptions. A war, or even
fighting of a limited kind as we are seeing in the Kargil and Drass
sectors, must have a political objective if the expenditure of
blood and resources is to be justified. What is the political
objective of the present fighting?
It cannot be the conquest or liberation of Kashmir because we lack
the strength for that. It cannot be the desire to internationalize
the Kashmir problem because it is a quixotic venture to risk a war
for so paltry an aim. After all, what did we gain when the Kashmir
problem was before the UN? A few pieces of paper which have not
stood the test of time. The objective cannot be to make India
negotiate under duress because if at all we live in the real world
we should know this is not a likely undertaking. What then is the
purpose of this operation?
Mature nations do not seek unfavourable wars. Nor do they risk life
and death for secondary objectives. China does not accept the
independence of Taiwan, but aware of the limits of its power, it
has not sent the Peoples Liberation Army across the Taiwan Straits.
In the midst of the First World War Lenin swallowed the
humiliation of the Treaty of Brest-Litovsk because the primary aim
before him was the preservation of the Bolshevik Revolution, not
the defeat of Germany. Japan claims the four northern islands from
Russia and although because of this dispute it has not signed a
peace treaty with Russia, it has never contemplated the use of
force to wrest the islands back.
We seem to have perfected the art of getting into wars without
purpose and without a sense of the dangers involved. In 1965 the
road to war was paved with false assumptions. In 1971 political
recklessness set the stage for our greatest national humiliation.
More recently we got involved in Afghanistan without counting the
long-term costs of that engagement. Given this background, it is
only fair to wonder what considerations lie behind the Kargil
operation.
That it is putting the country in an awkward position is becoming
clearer with each passing day. Our official line is that we have no
control over the freedom fighters. That may be so although it will
be hard to convince the world that these fighters have fallen from
the skies or are being supplied from the heavens. Even otherwise,
to go forward - that is, to expand the Kargil operation - looks
difficult because it would mean certain war. Stepping back risks a
loss of national face besides prompting angry questions as to what
the sabre-rattling was all about. How to declare victory, with as
straight a face as possible, and defuse the tension is the
challenge facing the country's politico-military leadership.
General Jahangir Karamat was right in suggesting a national
security council (or call it what you will), incorporating the
civilian leadership and the military command, to handle important
questions of war and peace. If only Nawaz Sharif and his coterie
had had the sense to understand that this suggestion, far from
undermining civilian authority, would work to the political
leadership's advantage. As it is, nothing in the present crisis
looks more forlorn and helpless than the Muslim League's heavy
mandate, with the prime minister's immense powers being of little
use to him in understanding, much less dealing with, the present
situation.
One conclusion most Pakistanis can safely draw. Left to themselves
Pakistan's democrats have left nothing undone to prove their
incompetence. Left to itself the military command has historically
shown itself to be prone to shortsightedness and adventurism. For
the foreseeable future there will remain the need to moderate and
balance both these dangerous tendencies.
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990619
-------------------------------------------------------------------
Accountability in action
-------------------------------------------------------------------
Irfan Husain
I HAVE just received a brief taste of the embarrassment our leaders
cause to expatriate Pakistanis by their endless corruption and
puerile behaviour: while on a brief visit to England, I have
already come across two damning reports against Nawaz Sharif and
Benazir Bhutto in the mainstream press.
First, the Sunday Telegraph carried a story about our prime
minister running amok at Harrods: apart from a #5,000 bed and
thousands of pounds spent on linen and other goodies, the reporter
painted a very funny picture of Mr Nawaz Sharif's security guards
being unable to keep up as the PM shopped as though there were no
tomorrow. The article included a comparison of Third World leaders
who had been shopping recently at Harrods: Pakistanis will be
pleased to learn that our minister topped the list for conspicuous
and vulgar consumption.
All this, of course, at a time when we are being asked to tighten
our belts to face the foreign exchange crisis that confronts us. Mr
Sharif has made a number of requests to his businessmen colleagues
to shell out a few million dollars each out of their overseas
accounts to see us through. He would have been a little more
credible had he made a significant donation himself instead of
going on a shopping spree in London.
A few days after this sarcastic news item appeared, the Times
carried a piece on Asif Zardari's and Benazir Bhutto's estate in
Surrey. It was alleged that neighbours had seen her at the famous
property, and details about the extensive lands and the cost of the
property were printed. Actually, at no point has the former prime
minister flatly denied that she owns the estate, equivocating by
asking why she could not buy property in England if Nawaz Sharif
could own several flats in Central London. This lame argument has
not gone down well either in Pakistan or in England. Neither leader
has grasped the fact that people in England are most unimpressed by
such a vulgar display of wealth. When Arab sheikhs flaunt their
unearned petro-dollars, most people laugh at them while relieving
them of their money. BB and Nawaz Sharif have placed themselves in
this category.
Against this backdrop of the usual sleaze in high places in
Pakistan, the recent revelations and resignations from the British
cabinet provided a refreshing counterpoint. Here was Peter
Mendelson, the second most powerful man in Britain, resigning
because he had taken a loan to buy a house from a colleague before
the Labour Party swept to power. The loan itself was perfectly
legal; what was deemed improper was the fact that he had not
informed Tony Blair of the transaction. Also, as Mendelson's
ministry was investigating Robertson, the minister who had lent him
the money, there was a potential conflict of interest. In the
event, both ministers resigned as soon as the story appeared in the
press just before Christmas.
In Pakistan, we have a sitting prime minister against whom there
are allegations of defaulted loans and unpaid taxes. According to
his tax returns filed with the Election Commission, and quoted by
Aitezaz Ahsan on the floor of the Senate, he paid less than Rs 500
as income tax in three years. Then we have Benazir Bhutto, the ex-
PM, who, together with her husband, is alleged to have salted away
millions of dollars abroad; the Swiss magistrate investigating her
questionable dealings with Cotecna and SGS, two Swiss firms, has
detailed her and her husband's extensive foreign holdings.
I suppose one could go on and on about the strongly suspected and
often alleged chicanery and corruption in high places, but the
contrast I am trying to make here is between the thick skin of our
politicians, and the prompt accountability that underpins democracy
in developed nations like Britain. This is not to suggest that
corruption is totally absent in Whitehall; far from it. But when
somebody is caught with his hand in the till, the chances are that
the whistle will be blown, and heads will roll.
In Pakistan, the press continues to expose crooks in high places
day in and day out, but to little avail. When these revelations
reached a certain critical mass, the Establishment - comprising
GHQ, the presidency and our shadowy and powerful intelligence
agencies - used these news reports, columns and editorials to throw
out the government of the day, replace it with an interim
arrangement and then tried to manipulate the elections. Now, of
course, this is no longer an option, thanks to the constitutional
changes introduced by Nawaz Sharif to protect his government.
But at no point has any politician in power paid any heed to
allegations of sleaze made in the press. This refusal to clean up
its act has cost several governments heavily, but this ostrich-like
approach remains ingrained in the psyche of our rulers. They really
believe that they were elected to enrich themselves, and any
suggestion that they have a responsibility that goes beyond adding
to their personal account is rejected as sour grapes from the
opposition-inspired press. For these people, democracy is about one
thing, and one thing only: con the people to vote your party to
power and then cling on to amass as much money as possible.
Under these circumstances, it is difficult to see when genuine
accountability will take root in Pakistan. Until that day arrives,
I suppose we will just have to make do with Saifur Rahman's
inefficient and one-sided version.
===================================================================
SPORTS
990617
-------------------------------------------------------------------
Saeed, Wasti put Pakistan into final
-------------------------------------------------------------------
MANCHESTER, June 16: Pakistan, inspired by record-breaking opening
partnership between Saeed Anwar and Wajahatullah Wasti, cruised
into the World Cup final here on Wednesday after a merciless
demolition of New Zealand.
Wasim Akram's men must have felt they were playing in Lahore or
Karachi as the sun blazed down on Old Trafford and a large
contingent of supporters kept up a constant din throughout the day
and twice fired rockets into the sky.
Chasing 242 for victory, the 1992 champions made what could have
been a testing total look ridiculously easy, reaching their target
for the loss of only one wicket with 15 balls to spare.
Saeed, alternating deft wristy placements with some glorious drives
which scorched across the turf, raced without apparent effort to an
unbeaten 113 from 148 balls with nine boundaries.
He hit the winning runs as the Pakistani supporters, who had held
up play for seven minutes with a premature pitch invasion, poured
on to the field.
Stephen Fleming's Kiwis, making first use of the wicket, had posted
a respectable 241 for seven without ever getting into full stride.
But Wasim's highly-talented side, bidding to repeat Pakistan's
World Cup win of 1992, were vastly superior in all departments as
they won by nine wickets with 15 balls to spare.
Pace spearhead Shoaib Akhtar had done the damage in the field,
taking three wickets as he terrorised the opposition.
Saeed, with his second consecutive hundred, and Wasti (84) then
made the New Zealand attack - which included Geoff Allott, the
tournament's record wicket-taker - look toothless.
The opening pair, overtaking the previous World Cup first-wicket
partnership record of 186, between South Africa's Gary Kirsten and
Andrew Hudson against Holland at Rawalpindi in 1996, were not
parted until the 41st over, with 194 on the board.
Wasti, driving at Cairns, skied the ball to mid off.
Theirs was also the highest World Cup stand by any Pakistan pair.
"It was a great performance by the whole team right from the
start," said Wasim. "Saeed Anwar was brilliant. I have always said
he is the best batsman in the world and I thought Shoaib Akhtar
bowled his heart out.
Collecting his Man-of-the-Match award and with the crowd in front
of the pavilion chanting his name, Shoaib said: "I feel very proud.
Now we can look ahead to the final with confidence."
For New Zealand, it was the fourth time they had played in a semi-
final without reaching the final.
Their captain Stephen Fleming said: "I thought our total was
competitive. If you had offered me 240 before the match I would
have taken it.
"Still, to get to the semis has been a very good achievement and we
have probably exceeded a few people's expectations."
New Zealand, well beaten in the group stages by Pakistan, had hoped
that teamwork might this time get the better of the brilliant but
unpredictable rivals.
But the left-handed Saeed, who finished with 113 and right-handed
Wasti began the run chase as if they had an urgent evening
appointment to keep.
Wasti's 84 contained 10 fours and one six off 122 balls. Saeed hit
nine boundaries.
But neither they nor all-rounder Chris Cairns, coming in at number
six and cracking an unbeaten 44 off 48 balls at the end, could go
on to make a major score.
Significantly, the highest individual score of the innings came
from the 47 extras conceded by Pakistan.
The 23-year-old Shoaib, whose quickest delivery was recorded at 94
miles per hour, was Pakistan's enforcer.
Opener Matt Horne edged two streaky fours off him over gully and
slip, with another boundary coming off a bouncer that also cleared
wicket-keeper Moin Khan, before Shoaib began to make inroads.
He had three spells and took a wicket each time, never allowing New
Zealand's batsmen to settle.
Shoaib, racing to the crease like an Olympic sprinter, made his
intentions clear from the first over and achieved the initial
breakthrough by bowling the unfortunate Nathan Astle for three.
Astle was beaten by speed and Craig McMillan, similarly short of
runs during the tournament, was caught behind off Akram, also for
three.
But when Pakistan batted it appeared to be a different game and
they now deservedly go into Sunday's final against the winners of
Thursday's match between South Africa and Australia.-AFP/Reuters
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990618
-------------------------------------------------------------------
Pakistan head for Lord's in confident mood
-------------------------------------------------------------------
MANCHESTER, June 17: Pakistan captain Wasim Akram leads a supremely
confident side into Sunday's World Cup final after they dispelled
doubts that they could not chase a big total.
"They showed they are one of the best sides in the world. The way
we won showed we are full of confidence for Sunday," Wasim said.
Pakistan cruised past the Kiwis' 241 for seven with the loss of
just one wicket and plenty of balls to spare at Old Trafford to top
off a fine all-round performance in emphatic style.
"Now the opposition must be getting worried. Before the final
everything is going in to the proper place. I never imagined I
would play a World Cup final again but I must say the way Pakistan
have been performing for the last six months - we have amazing
players in our side.
"I think everything is falling into its proper place," Wasim said.
"We are thinking positively. Anyone can come - we have to think we
are better than them.
"We have watched the others and we aren't worried. We're just
looking at our own performance.
"I don't want to predict who we will meet in the final ... we can
handle either."
The narrow margin between the three top sides, Pakistan, South
Africa and Australia, has been reflected in their head-to-head
meetings here.
Pakistan won against Australia in the first round by 10 runs.
Wasim's side then lost to South Africa in the second round by three
wickets. They had Hansie Cronje's side reeling at 55 for four but a
46-run flurry by Lance Klusener saw the South Africans home.
Then South Africa went down to Australia, thanks to a brilliant
undefeated century by Steve Waugh, with just two balls of the match
remaining.
Wasim, however, said: "We can win, Inshallah. we have every chance
in the final. It does not matter whom we play. I've always said
that winning the World Cup was within reach for this talented side.
It's just that we had a bad week midway in the tournament."
Pakistan lost to Bangladesh, South Africa and India in succession
before hitting back with a 148-run crushing of Zimbabwe and the
one-sided semi-final triumph.
"The worst is behind us and the boys are raring to have a shot at
the title," Wasim added.
The Pakistan jigsaw, Wasim argued, was completed on Wednesday when
the team completed a successful run chase against the New
Zealanders. Until then, they have been seen as excelling only in
defending totals.
"Our failure to chase targets was proving to be a headache but I
never lost confidence," Wasim said.
"We needed the confidence to chase and we've got it.
"In two years we haven't won this easily. This goes to show we can
chase and win."
As important for Wasim, the experienced Ijaz Ahmed found his best
form.
While only playing a cameo role following the record opening
partnership between Saeed Anwar and Wajahatullah Wasti, Ijaz looked
the part for the first time in the tournament, according to his
captain.
"Ijaz is looking good. He was brilliant today and that is a relief
to me," he said. "We disproved the myth that we cannot chase.
"The whole team was much better. The body language was better."
Pakistan and South Africa have regularly exchanged places as the
bookmakers' World Cup favourites during the tournament. Australia,
meanwhile, with five wins in a row, have closed the gap.
But Stephen Fleming, captain of defeated New Zealand, said Pakistan
were the real side to beat.
"They're the favourites at the moment. They have great fire-power.
Their attack is second to none at the moment and is so well
balanced. They have a lot of variety, which is crucial.
"If they lose early wickets they'll be under pressure but if they
get a good start they'll be strong."
Wasim, appearing at his fourth World Cup, is a player for the big
occasion.
In Pakistan's only other appearance in a World Cup final in 1992
against England, the left-arm pace bowler hit 33 off 18 balls and
took three wickets to win the Man-of-the-Match award.
Pakistan are not likely to bring back batsman Yousuf Youhana who
has been suffering from a hamstring injury.
The inclusion of Wajahatullah Wasti as opener, allowing Shahid
Afridi to move down the order, has been an outstanding success with
Wasti and Saeed Anwar gelling immediately and giving the top of the
order much-needed stability.
Sunday's final could turn out to be a fitting finale for 33-year-
old Wasim.
But asked about retirement, the captain said: "I didn't say I will
retire. You never know, anything can happen."-Agencies
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