------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 20 February 1999 Issue : 05/08 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Vajpayee arrives today: Open-ended agenda for summit + Protocol for road travel visa signed + No let-up in fight against terrorism : PM + Dar, IMF officials meeting today + Pakistan fighting for its survival, says Benazir + Supreme Court declares military courts illegal + SC judge briefed: All facilities for ATA courts assured + Ban on fissile material sought: Japan links aid to CTBT signing + Pakistan to press for execution of projects + China lauded for firm support to Pakistan --------------------------------- BUSINESS & ECONOMY + WAPDA-Hubco dispute: Arbitration proceedings from Monday + Council of Economists meets next month + Textile exports plunge as world demand slackens + Nawaz for privatization at top throttle + PC receives 5 EoIs for HBL shares + IPPs not allowed to remit debts + PIA not to increase fares, Senate told + IMF team discusses reforms with officials + Pakistan, Turkey, Turkmenistan sign MoU on energy + Mobil keen to buy Pakistan State Oil + Stocks up, volume of business falls sharply --------------------------------------- EDITORIALS & FEATURES + A hundred years ago Ardeshir Cowasjee + Imagine... Irfan Husain ----------- SPORTS + Pakistan win first test match of Asian Test Championship + Pakistan overwhlem India 4-2 to clinch hockey series + Uzbekistan beat Pakistan 4-1 in Davis Cup

Vajpayee arrives today: Open-ended agenda for summit
Ashraf Mumtaz

LAHORE, Feb 19: A warm welcome awaits Indian Prime Minister A. B. 
Vajpayee when he arrives at Wagah by the inaugural bus service 
between New Delhi and Lahore on Saturday afternoon to discuss a 
host of issues which have been bedevilling relations between the 
two countries.
He will be received by Prime Minister Nawaz Sharif after which he 
will be given a guard of honour.
In view of the protest rallies announced by a couple of religious 
parties against the visit, extraordinary security arrangements have 
been made at all places where the Indian leader is expected to go. 
No welcome banners had been displayed at The Mall till late Friday 
night, presumably because of the fear that groups opposed to the 
visit would remove them.
The authorities continued to make changes to the Indian prime 
minister's programme till the last minute, deleting some places 
from his itinerary and adding others.
Wagah, the point from which he will cross over to Pakistan, and the 
Governor's House - where he will stay - have been handed over to 
the rangers. However, security arrangements for the remaining 
places have been left to the provincial government, according to 
Interior Minister Chaudhry Shujaat Husain.
The border crossing point has become the focus of international 
Both countries are optimistic that headway will be made in the 
Lahore talks as a result of which there will be improvement in 
bilateral relations.
Foreign Office Spokesman Tariq Altaf said while talking to Dawn and 
then at a late-night news conference on Friday that there was 'no 
fixed agenda' for talks between the two prime ministers.
"We'll discuss all issues we'll like and they (India) will raise 
the matters of their choice".
He said Kashmir would be on the top of the agenda while the nuclear 
programme, CTBT, disarmament and all other matters related with 
peace and security would also be discussed.
Asked about the agreements the two countries were likely to sign 
during the Indian prime minister's visit, Mr Altaf said that since 
talks were still going on, he would not like to say anything on the 
He said Pakistan looked forward to constructive and meaningful 
dialogue with India.
He said although the two prime ministers had met each other in the 
past, the encounters were mainly on the sidelines of various 
international conferences. The present visit of the Indian prime 
minister, he said, would give the two leaders an opportunity to 
discuss all matters they liked.
"Now is the time to resolve our disputes and move ahead. This 
region has been severely left behind. This is the time for peace 
and security. It's time that we have a conducive atmosphere and 
forge ahead through mutual cooperation".
Mr Altaf said Prime Minister Nawaz Sharif would tell his Indian 
counterpart that Pakistan was ready to resolve all disputes on the 
basis of justice and equity.
KASHMIR: Talking about the importance of the Kashmir dispute, he 
said its centrality was not a hidden thing and the resolution of 
the problem was imperative for peace and security in the region.
Pakistan, he said, would like to discuss putting an end to the arms 
race and creating an atmosphere for an end to wars and conflicts.
The Indian prime minister's visit, he said, provided a historic 
opportunity which should not be lost at any cost. "We are 
determined (to make full use of the opportunity). We wish the 
dialogue should be substantive and result-oriented".
Replying to a question on Kashmir, he said Pakistan would welcome 
reduction in troops in occupied kashmir and improvement in the 
human rights situation.
He said Pakistan would tell India that since the dispute was 
affecting the relations between the two countries, "some forward 
measures need to be done". He said international community also 
desired that some solution should be found to the problem.
Answering a question, he said Pakistan's stand that the Kashmiri 
people should be given the right to self-determination remained 
unchanged. This position, he emphasized, was based on justice.
The foreign office spokesman said it augured well that the Indian 
leaders also felt the need for solving the outstanding problems. 
"My hope is that we can make some progress".
He said that now that the Indian prime minister was coming to 
Pakistan, it would not be right to say that the visit was merely 
for atmospherics. However, he said, it would be open to the two 
prime ministers to take initiatives and decisions.
Asked if despite such a mutual engagement on Kashmir there was a 
need for a third party involvement for the solution of outstanding 
problems, the foreign office spokesman said: "We are trying to 
resolve issues by ourselves. But the third parties are still 
relevant. We are not insulated."
He said now that nuclear weapons were available to both the 
countries, the third countries were stressing that they should 
resolve their outstanding disputes. Some leaders and countries had 
also offered mediation. "Third parties have a role to play. We'll 
be happy to get their assistance to resolve problems".
Answering a question, Mr Altaf said Pakistan was very much 
interested that nuclear restraint regime and confidence- building 
measures should be worked out.
INDIAN VIEW: Indian high commissioner to Pakistan G. Parthasarathy 
said at a briefing that Prime Minister Vajpayee's visit was aimed 
at "reaching out to the people of Pakistan".
He said "one can discern there is a will (on both sides) to 
reconcile differences through dialogue".
The Indian envoy said "talks (between the two countries) will be 
wide-ranging, to cover a whole gamut".
He said commonalities would be put together so that positive 
results of the meeting could be portrayed. "I am optimistic that 
we'll have positive results from talks."
When a reporter pointed out that the Pakistan media was giving the 
impression that the Indian prime minister was coming to Lahore to 
discuss the Kashmir issue, Mr Parthasarathy said: "When two prime 
ministers meet, they discuss all issues. Kashmir certainly falls in 
that definition. But the agenda is wide-ranging."
"Is India willing to give some concessions on the Kashmir issue?" a 
journalist asked.
High commissioner Parthasarathy said: "when the prime ministers 
meet, they discuss (ways and means) to reconcile differences".
He parried a question seeking identification of the Pakistani 
official with which Indian national security adviser Prajesh Misra 
had met in Lahore. The high commissioner said the very fact that Mr 
Misra was in Lahore meant that talks between the two countries were 
being held at a very high level.
A reporter asked the Indian envoy about the possibility of the two 
countries signing the non-aggression pact. The high commissioner 
said the Simla Accord contained many of the provisions non-
aggression pact could be expected to do. He said both the countries 
were adhering to the accord.
Another reporter asked if he witnessed any improvement in 
sentiments about India since Prime Ministers Nawaz Sharif and 
Vajpayee had first met in Colombo, the high commissioner said: 
"Each meeting gives a better understanding. There's a good rapport 
between the two prime ministers. Rapport is built for further 
The Indian envoy said Mr Vajpayee's visit would be historic  and 
different in context from the ones undertaken by the late prime 
ministers Jawaharlal Nehru and Rajiv Gandhi in 1958 and 1989.
About the meetings between the officials of the two sides, he said: 
'There has been a substantial degree of cooperation and 
understanding to make the visit a success'. He said it was merely a 
speculation that Mr Sharif will accompany the Indian PM during his 
return journey to New Delhi.
PROGRAMME: According to the programme finalized on Friday night, 
the Indian prime minister will be flown from Wagah to the 
Governor's House by a helicopter.
Here the two prime ministers will meet for some time. A banquet 
will be hosted at the Lahore Fort.
On Sunday, the two PMs will meet again at the Gove-rnor's House and 
hold talks. A civic reception will be held in the afternoon which 
will be followed by a joint news conference of the two premiers.


Protocol for road travel visa signed
Mahmood Zaman

LAHORE, Feb 19: As Pakistan and India have agreed to operate bus 
service between Lahore and New Delhi, the two governments have 
signed a protocol to also issue visas for travel by road.
The bus service is likely to start before the end of the current 
month and passengers will be charged Rs800 for one-way journey. 
Another trial run will be made by the Pakistan Tourism Development 
Corporation before a formal bus service is launched.
An agreement for launching of the service was finalized last 
December and it was signed at Islamabad on Feb 17. Communications 
secretary Mohammad Akram Sheikh signed the agreement on behalf of 
the government of Pakistan and Indian high commissioner in Pakistan 
G. Parthasarthy was signatory on behalf of his government.
During this period the question of relaxing the visa policy was 
also discussed and a protocol on issuance of visa by road was 
signed at New Delhi on Jan 14 when the PTDC operated a bus as a 
technical mission.
The two countries have so far been issuing visas for travel by 
train and air.
According to official sources, visa by road will be issued by the 
two high commissions in Islamabad and in New Delhi on attaching 
with the application form the booking of seat in a bus.
Passengers opting to travel by air are also required to meet a 
similar requirement. However, the restriction may be relaxed with 
the passage of time.
According to sources, the PTDC will operate 40-seater buses twice a 
week - on Tuesdays and Thursdays. The Delhi Transport Corporation 
will also operate two buses a week on Wednesdays and Thursdays. The 
PTDC's terminal is located at Hotel Faletti's and the DTC has 
established its terminal at its head offices. 

No let-up in fight against terrorism
Bureau Report

ISLAMABAD, Feb 19: Prime Minister Nawaz Sharif said on Friday that 
provision of inexpensive and expeditious justice was a pre- 
requisite for eradication of all social and economic ills 
afflicting the country.
In a televised address to the nation, he said the government would 
respect the Supreme Court decision of setting aside the military 
courts as it was binding on him under the Constitution.
"We are duty-bound under the Constitution to respect the Supreme 
Court decision," he said.
The prime minister, however, warned the terrorists and said the 
government would not let them regain their lost ground in Karachi.
The terrorists would not get any opportunity to come out from their 
hideouts and again let loose a reign of terror in Karachi, he said.
He said the top item of his agenda was to provide inexpensive and 
expeditious justice to the people at their door step.

Justifying his decision of setting up military courts, he argued 
that the government had taken the decision under the Article 245, 
assuming that it was in line with the Constitution and it could not 
be challenged in the superior courts.
The military courts, he said, had discouraged the criminals and had 
restored confidence among the people.
The people of Karachi, he added, had started cooperating with the 
law enforcement agencies and had been coming forward to provide 
evidences against the terrorists.
The city had regained its lost life and before Eid people were 
seeing shopping in the markets and bazaars throughout the night.
Mr Sharif again charged the MQM with its involvement in the murder 
of Hakim Said. He said he had dissolved his party's government in 
Sindh, which he described as an unprecedented act in the democratic 
history of Pakistan.
Delay in justice, he said, had emboldened the terrorists to the 
extent that they had killed a personality like Hakim Said, who was 
an identify of not only Karachi but of the whole country.
The prime minister cited several specific incidents in which people 
could not get justice because of flaws in the existing judicial 
He concluded his speech with a prayer that the mechanism provided 
by the Supreme Court for providing justice to the people prove 
In his opening remarks, he said that after receiving a heavy 
mandate in the February 1997 election, he had thought that the 
nature had wanted him to do something big for the country.
"I can become prime minister with a simple majority," but this 
heavy mandate was not for pursuing the old and rotten system. It 
was to revamp the existing system and bring a positive change in 
the lives of people, he said
"My commitment is with this country," he said, adding that his 
future and the future of his generation was linked to this country.
"Our state structure is based on an unending sequence of vested 
interests," the prime minister said, adding that certain 
institutions were protecting these centuries-old vested interests.
In an explicit reference to the government-judiciary tussle in 
1997, he said how he could not give any explanation of the wastage 
of those six months in which all the state affairs had come to a 

Dar, IMF officials meeting today
Bureau Report

ISLAMABAD, Feb 18: Issues related to the budget for 1998-99 will be 
discussed during the formal talks starting from Friday morning.
Sources in the multilateral agencies told Dawn here on Thursday 
that the mission will also seek details of the next budget 
framework with a view to ensuring that all the conditionalities in 
the Policy Framework Paper (PFP) were implemented.
Minister for finance Ishaq Dar will lead the official team 
comprising secretary finance and special secretary finance. Ms. 
Sena Eken, the leader of the IMF mission will open talks from her 
Sources said that the review mission will call for increasing 
Public Sector Development Programme(PSDP) which has already been 
reduced by about Rs 7 billion.
The International Monetary Fund (IMF) expects Pakistan to achieve 
4.3 per cent GDP budget deficit to qualify for more funding from 
1.6 billion dollar ESAF/EFF. Pakistan has also agreed to lower its 
budget deficit to 3.3 per cent of the GDP in 1999-2000.
Other areas of concern for the review mission are the revenue 
slippages, and delay in overhauling tax administration.
According to the IMF, fiscal consolidation will be the key to 
achieving the macroeconomic objectives. A stronger budgetary 
position is consistent with the need for the availability of 
resources to the private sector and with the need to reduce the 
vulnerabilities associated with the larger stock of public debt.
The conclusion of successful talks will lead to the quarterly 
disbursement of 50 million dollar in early March. Later the 
government has been informed the IMF would extend 150 million 
dollars before June this year.

Pakistan fighting for its survival, says Benazir

KARACHI, Feb 18: Leader of the opposition Benazir Bhutto said on 
Thursday that despite becoming a nuclear power, the government had 
failed to check terrorism, provide jobs, education and health cover 
to the people whose life had become difficult due to inept 
government of Mian Nawaz Sharif. 
Addressing a big PPP rally, organized under the auspices of the 
Pakistan Awami Ittehad (PAI), in Mirpurkhas on Thursday, she said 
that Pakistan was passing through a grave crisis and was fighting a 
battle of its existence despite becoming a nuclear power. 
Wrong and self-centred policies of Mian Nawaz Sharif had increased 
the difficulties of the people manifold as prices had soared and 
thousands of people had been thrown out of job. 
She said that Nawaz Sharif had deliberately encouraged centrifugal 
sentiments of ethnicity, putting the country's integrity on stake. 
Ms Bhutto accused the prime minister of trampling upon national 
institutions to promote his personal business interest.
She said that Pakistan was an atomic power today owing to the 
policies initiated by her late father, Zulfikar Ali Bhutto, but 
claimed that Nawaz Sharif had weakened the country. "We are a 
nuclear power but people do not have education facilities, women 
are forced to travel miles in search of water and poor people are 
being deprived of their livelihood and health care," she claimed. 
She alleged that Mian Nawaz Sharif had failed to improve the law 
and order situation owing to which people were being killed in 
Karachi, Lahore, Multan, Shikarpur, Dadu, Jhang, D.I.Khan, Kohat 
and even Islamabad. 
She claimed that her government had broken the back of terrorism 
but the Raiwind rulers had compromised with the terrorists. Today 
there was anarchy and prices had shot up sky high. She said that 
the government had deliberately created Atta, ghee, petrol, power 
and water crisis. 
She said that people had become so desperate that they were 
committing suicide owing to poverty. Ms Bhutto accused the rulers 
of being insensitive to the needs of the common man and of being 
allegedly busy in money laundering and promoting personal business 
interests and victimising political opponents. She dealt at length 
with the cases instituted against her and her interned spouse, Asif 
Ali Zardari.
She said that in the name of Ehtesab the government was engaged in 
character assassination of the opponents through media trial based 
on concocted documents. She said that when the government's wrong 
doings were exposed, it attacked the Press as it had done with the 
judiciary and other institutions. 
She vowed that people who had been deprived of their livelihood by 
Nawaz Sharif would take over his factories, and remove him from 
power and the Raiwind Estate. 
Amid applause, Ms Bhutto declared that Nawaz Sharif must go if 
Pakistan was to be saved from disaster. 
She said that Pakistan had been enslaved due to wrong economic 
priorities of the government which had also divided the nation on 
Kalabagh dam issue and people have been made to suffer by freezing 
the forex accounts and witch-hunting.

Supreme Court declares military courts illegal
Rafaqat Ali

ISLAMABAD, Feb 17: A nine-member bench of the Supreme Court on 
Wednesday unanimously declared the setting up of military courts 
for the trial of civilians as unconstitutional and without lawful 
The apex court, however, provided a mechanism for speedy trial of 
the cases relating to terrorism. It set aside all the convictions 
by the military courts which had not been executed.
"We are of the view that Ordinance No XII of 1998 as amended up-to-
date in so far as it allows the establishment of military courts 
for trial of civilian charged with the offences mentioned in 
section 6 and the schedule to the above ordinance are declared 
unconstitutional, without lawful authority and of no legal effect," 
the court held after 12 days' hearing.
It held that all the cases in which sentence had been awarded but 
no execution had taken place should be transferred to the anti-
terrorist courts already in existence or which might be created in 
terms of the guidelines provided by the bench.
The bench consisted of Chief Justice Ajmal Mian, Justice 
Saiduzzaman Siddiqui, Justice Irshad Hasan Khan, Justice Raja 
Afrasiab Khan, Justice Mohammad Bashir Jehangiri, Justice Nasir 
Aslam Zahid, Justice Munawar Ahmed Mirza, Justice Mamoon Kazi and 
Justice Abdur Rehman Khan.
The court held that evidence recorded already in the cases before 
the military courts should be read as evidence in the cases, 
provided it did not affect any of the powers of the presiding 
The court clarified that its decision (Feb 17, 1999) would not 
affect the sentences and punishment already awarded and executed by 
the military courts, and the cases would be treated as past and 
closed transactions.
The court observed it was also not oblivious to the fact that 
terrorism in Karachi and other parts of Pakistan had not only been 
taking a toll of thousands of innocent lives but had also affected 
the economy of the entire country. "It is matter of paramount 
importance that this menace is eliminated effectively in the 
shortest possible time, for which a solution be found within the 
framework of the Constitution."
It directed that the cases relating to terrorism be entrusted to 
the special courts already established or might be established 
under ATA.
It stated that one case should be assigned at a time to a special 
court and till judgment was announced in that case, no other case 
be entrusted to it. The ATA court should proceed with the case on a 
day-to-day basis and pronounce judgment within seven days, as 
already provided in ATA.
The challan of a case should be submitted to a special court after 
full preparation and after ensuring that all witnesses would be 
produced, as and when required, by the special court concerned.
The court held that the assistance of the armed forces could be 
pressed into service by virtue of Article 245 of the Constitution 
at all stages including the security of the presiding officer, 
advocates, and witnesses appearing in the cases, minus the process 
of judicial adjudication as to the guilt and quantum of sentence, 
till the execution of the sentence.
The appeal arising out of an order/judgment of the special court 
should be decided by the appellate forum within seven days from the 
filing of such appeal. Under the amended ATA, an appeal is provided 
in high court and, subsequently, in the Supreme Court.
The apex court decided further that the chief justice of the high 
court concerned should nominate one or more judges of the high 
court for monitoring and ensuring that cases/appeals were disposed 
of in terms of the above-mentioned guidelines.
According to the guidelines laid by the SC, the chief justice of 
Pakistan might nominate one or more judges of the Supreme Court to 
monitor the implementation of the above-mentioned guidelines. The 
judge/judges of the Supreme Court would ensure that if any petition 
for leave, or appeal with the leave was filed, the same was 
disposed of without any delay in the Supreme Court.
The chief justice, under his administrative powers, nominated 
Justice Nasir Aslam Zahid and Justice Munawar Ahmed Mirza in this 
The petitions challenging the establishment of military courts were 
filed by the MQM through its deputy convener Senator Aftab Sheikh, 
MQM parliamentary leader in National Assembly Sheikh Liaquat Ali, 
PPP leader from Sindh Nisar Khuhro, MWM's Syed Iqbal Haider and 
Shahid Orakzai.
Advocate Dr Basit and Mohammad Akram Sheikh represented the MQM, 
Barrister Aitzaz Ahsan represented the Nisar Khuhro. The other two 
petitioners appeared in person.
Attorney-General Chaudhry Farooq and Advocate-General of Sindh 
Iqbal Radd represented the federation and the province of Sindh.

SC judge briefed: All facilities for ATA courts assured
H. A. Hamied

KARACHI, Feb 18: The Sindh chief secretary has assured the 
judiciary he would shortly identify secure places for the ATA 
courts to hear cases in Karachi, as well as in the rest of the 
province, after the abolition of military trial courts.
At present, there are three ATA courts in the province - one each 
at Karachi, Sukkur and Hyderabad.
Z. A. K. Sherwani, member (inspection) of the High Court of Sindh, 
said this at an hour-long meeting, presided over by Justice Nasir 
Aslam Zahid of the Supreme Court. The meeting, held in the high 
court building on Thursday, was also attended by SHC Chief Justice 
Kamal Mansur Alam, the home secretary and the IGP.
The chief secretary said the MTCs were working in protected areas 
whereas the civil courts were not located at secure places. "They 
should be made to sit in protected places where everybody should 
feel secure, including the judges, the accused, the lawyers and the 
Chief secretary Salik Nazir and home secretary Rana Wajid assured 
the meeting that all the material that was provided to the MTC 
would be handed to the ATA courts.
The administration officials also assured the meeting that they 
would ensure production of prosecution witnesses, the accused and 
whatever material was needed to ensure that proceedings in the ATA 
courts could continue in accordance with the directives of the 
Supreme Court.
Mr Sherwani said an SHC judge, Justice S.A. Sarvana, would be 
monitoring the proceedings of the trial courts, which would shortly 
be constituted from among the district and additional district 
judges, lawyers and retired judges.
Giving statistics, Mr Sherwani said 144 cases were pending in the 
ATA courts in Karachi, 35 in Sukkur and Larkana, and 22 in 
In addition, he said, 144 cases were ready to go to the MTC and 26 
were pending in those courts.
Within a week's time the new ATA courts should start functioning in 
Sindh, he said, and added that there were 61 appeals in the high 
courts against the ATA court judgments. Of these, 23 had been 
disposed of while 38 were still pending, which would be disposed of 
in about two months as laid down in the directives of the SC.
Of the 38 appeals pending in the High Court of Sindh, 26 are from 
Karachi, nine from Hyderabad and three from Sukkur.
The IGP has given an undertaking that the accused would be produced 
regularly as was being done in case of the MTCs.
At present, only three ATA courts are working and this number would 
be increased to seven.
PPI adds: Justice Nasir Aslam Zahid stressed the need for 
establishing ATA courts throughout the province within the next 
seven days.
Presiding over the meeting, he also called for the provision to the 
ATA courts of the facilities available to the MTCs.
Justice Nasir Aslam Zahid regretted that the police were not 
producing the accused or the witnesses at the time of hearing, 
whereas they were regularly presented before the MTCs. The IGP and 
the home secretary gave an undertaking that this would be done in 
Justice Zahid asked the SHC chief justice to dispose of 38 pending 
appeals against ATA courts judgment in the next two months.
Meanwhile, Suppression Terrorist Activities (STA) courts would 
continue in Karachi according to the law and the Constitution. 
Their work would be reviewed in a few days with a view to 
ascertaining their strength.
Justice Zahid and Chief Justice Kamal Mansur would hold another 
meeting with the same officials of the Sindh government to review 
the process of establishing ATA courts in Sindh on Saturday.

Ban on fissile material sought: Japan links aid to CTBT signing
Bureau Report

ISLAMABAD, Feb 16: Japan has called upon Pakistan to sign the CTBT 
before India, which is expected to do so this May.
"We have heard the news that India will sign the CTBT in May this 
year and by signing before India, Pakistan will greatly improve its 
image in the international world", said Kazuya Ogawa, director, 
South Asian division of the Japanese foreign ministry.
Speaking at a news conference after the conclusion of the Ninth 
Japan- Pakistan join commission meeting here on Tuesday, he said 
Japan would not restore the $500 million annual assistance under 
32nd yen package Loan unless Pakistan signed the CTBT and put 
moratorium on the production of facile material.
He was speaking on behalf of Minoru Tamba, deputy foreign minister 
of Japan, who led his country for a joint commission meeting here.
Responding to a question, he said Pakistan was ready to adopt a 
law, through parliament, to prohibit the export of nuclear arms and 
other relevant material, "but your government does not seem to be 
ready to sign the CTBT before September and also not willing to 
stop the production of facile material."
He said Japan had also expressed concern over Pakistan-North Korea 
cooperation in the field of nuclear and missile technology.
Pakistan to press for execution of projects
Muhammad Ilyas

ISLAMABAD, Feb 18: The ECO Regional Planning Council (RPC) will 
meet at Istanbul on Feb 22 and 23 to consider a wide-range of 
issues crucial for increasing economic cooperation between its nine 
members, according to an official source.
The Pakistan delegation will be led by the Secretary, Planning & 
Development Division, Tayyeb Hasan.
The meetings of RPC are chaired by the heads of planning agencies 
of the host countries. The projects finalized by it are submitted 
to the Council of Ministers in which the foreign ministers are the 
Sources said an important issue facing the forthcoming RPC meeting 
would be the tardy pace of implementation of decisions already 
One of these concerns the ECO Transit Agreement, which has been 
ratified by Pakistan. It envisages the setting up of entry- and 
exit-points for flow of goods between the member-countries. This 
will facilitate the exporters/importers, transporters and clearance 
agents in smooth exchange of goods across the borders without too 
much bureaucratic hassle.
The meeting is also likely to discuss the possibility of reducing 
tariff and non-tariff barriers to trade in the region. In this 
connection, a high level group of experts held their meeting at 
Islamabad some time back. This group's recommendations will be 
placed before the meeting.
Then there is the agreement on establishment of an ECO Trade & 
Development Bank which was signed in March 1995. Pakistan, which 
has since ratified it, will propose in the RPC that other countries 
should also ratify it. It will also recommend that the Bank's head 
office be located at Istanbul, the source said.
Another agreement, also signed in March 1995, was about 
simplification of visa procedures for the businessmen of member-
states. The purpose is to ensure that the businessmen get visas 
expeditiously. It has been ratified, besides Pakistan, by Iran, 
Kazakhstan and Turkey.
The RPC, it is expected, would also review the progress in respect 
of the preparation of an Oil & Gas Master Plan. 
This would include the laying of an oil/gas pipeline between 
Kazakhstan, Uzbekistan, Turkmenistan, Afghanistan and Pakistan. The 
proposal in this regard was prepared by Iran. It would be 
Pakistan's endeavour to ensure that the scheme is implemented in 
such a manner as to provide oil to it cheaply and quickly, 
according to the source.
Another proposal envisages the establishment of an ECO Drilling 
Company. Pakistan may suggest that the parameters of such a company 
be considered by an experts' group which should meet preferably in 
Pakistan is also keen to increase cooperation under the ECO ambit 
in the area of agriculture, particularly, that aspect of it which 
concerns food security. In this connection, it is likely to suggest 
that RPC issue the directive for holding a workshop of ECO member 
states with the help of FAO, IFAD and other international donor 
agencies. The first meeting was held in Turkey last October. The 
RPC may endorse its recommendations for adoption by the Council of 
The trade in the region has been rather stagnant. Thus while the 
exchange of goods between the member-countries increased from $7.53 
billion in 1993-94 to $10.28 billion in 1995-96, it tapered off to 
$9.63 billion in 1996-97 and further to $8.78 billion in 1997-98.


China lauded for firm support to Pakistan

ISLAMABAD, Feb 17: Federal Minister for Information and Culture 
Mushahid Hussain on Wednesday commended China for its steadfast and 
unflinching support and assistance to Pakistan without attaching 
any political strings.

"China has always supported and given assistance to Pakistan in 
hour of need without any pre-conditions or attaching any strings," 
he said at a luncheon hosted in honour of the new Chinese envoy Lu 
Shu Lin.
Islamabad-based Chinese diplomats and media representatives also 
attended the luncheon.
Mushahid said Beijing's assistance to Islamabad was never meant to 
make Pakistan a dependent country. "China's support for Pakistan 
has always been based on promoting principle of self-reliance and 
not forging dependence on aid," he added.
He said Pakistan's relations with China had always been friction 
free and time-tested. "Our relations are based on the principle of 
respect for the principle of non-interference in each other's 
internal affairs as well as mutual respect for state sovereignty 
and territorial integrity."
He also congratulated the government and people of China on the 
Golden Jubilee celebrations of Chinese Revolution. "It was a 
watershed event in the history of 20th century."
"We share the joys of our Chinese brethren," he said and paid 
glowing tributes to the Chinese leadership for,"revamping world's 
largest nation."
Mushahid Hussain gave a detailed account of the programmes being 
organized to mark golden jubilee celebrations of Chinese Revolution 
in Pakistan which include an International Seminar in September in 

WAPDA-Hubco dispute: Arbitration proceedings from Monday
Sabihuddin Ghausi

KARACHI, Feb 18: A three member Arbitration Tribunal of the 
International Chamber of Commerce (ICC) in London begins next 
Monday hearing in the dispute between Pakistan's private power 
operator Hubco and the Water and Power Development Authority 
(WAPDA) on power tariff structure.
The dispute pertains to the second amendment of Power Purchase 
Agreement (PPA) which the WAPDA refuses to accept on the plea that 
it gives immense advantage to Hubco and it is based on 
considerations which are not ethical and according to the 
principles of clean business practices. The Hubco, however, 
considers the second amendment in the PPA valid and in accordance 
with the terms and binding on the WAPDA.
According to reports reaching local stock market, the ICC has 
appointed Max Abrahamson as the chairman of the Tribunal. A former 
foreign minister of Bangladesh Dr Kamal Hossein is the co-
arbitrator on the tribunal on WAPDA's nomination and Andrew Rogers, 
a former Chief Judge of the Commercial Division of the Supreme 
Court of New South Wales, Australia is another co-arbitrator on 
nomination of Hubco.
The three member Arbitration Tribunal has been constituted on a 
petition moved by the Hubco in July last year when it invoked 
Clause 15 of the PPA and approached the ICC to what it contends 
seek relief.
The local market sources, who are watching closely the lingering 
dispute between WAPDA and the Hubco for over last two years, said 
that WAPDA initially tried to delay and even escape the 
international arbitration.
In its communication to the ICC Secretariat in August last year, 
the WAPDA took a position that it was engaged in negotiations with 
the Hubco "to find out an amicable solution to the Hubco tariff 
issue" and hence there was no need of any arbitration on the issue.
The Hubco, however, in its rejoinder to the ICC Secretariat in 
August last year informed that the negotiations were not being held 
with the Hubco but with its shareholders and had blamed the 
government of employing "atrocious, oppressive and coercive means". 
It also pointed out that there was no agreement between Hubco and 
the WAPDA to stay the arbitration proceedings and it insisted to 
continue with the arbitration as provided in the rules.
It was finally on October 7 last year, the International Court of 
Arbitration decided to refer the WAPDA-Hubco dispute to a three 
member Arbitration Tribunal and confirmed Andrew Rogers name as one 
of the co-arbitrator. The court gave WAPDA 15 days to nominate its 
co-arbitrator failing which it was declared that one would be 
appointed on its behalf as provided in the rules.
Council of Economists meets next month

KARACHI, Feb 17: The first meeting of Council of Economists set up 
by the Planning Commission will be held in March to consider steps 
to improve the economy by using competitive advantages the nation 
According to a member , the council will meet on every first 
Saturday of the each quarter. The council is headed by Deputy 
Chairman, Planning Commission Ahsan Iqbal.
Under the terms and reference, the council will review the current 
economic situation and suggest measures to overcome the prevailing 
problems and issues.
It will also suggest improvements in the planning procedures and 
the implementation process of development projects.
The council will review the progress regarding the preparation and 
implementation of Ninth Five Year Plan and will also assess the 
implementation of Pakistan 2010 Programme.
The council has 22 members which include former bureaucrats, 
educationists from department of economists, officials from four 
provincial planning and development departments, representative 
from business community.


Textile exports plunge as world demand slackens

KARACHI, Feb 17: Export of cotton and cotton-based products 
including the made-ups showed steep decline of Rs8bn during January 
owing largely to the financial crisis in the South and Far eastern 
countries and the consequent recession.
According to official monthly figures textile exports fell to 
Rs12.836bn from Rs20.604bn during December of 1998 and Rs13.789bn 
during January last year.
Industry sources attributed the decline to slack demand for the 
cotton yarn, which accounts for about 50 per cent of the total 
monthly sales because of recession in the major importing 
"An idea of falling cotton yarn prices may well be had from the 
fact that it is now being quoted about 6 cents per kilo lower on 
the Hong Kong market at 206.68 cents per kilo as compared to 212.30 
cents per kilo some two weeks back", they added.
They claimed there is slight improvement in demand from the 
Japanese spinners for the carded cotton yarn but the quantity is 
too small to push the export figure to a normal average monthly 
Spinners are worried over the falling consumption of lint cotton by 
its members and feared it may remain slow until world demand for 
cotton yarn pick up.
During the first two months of the current cotton season beginning 
from Sept 1,1998, spinners have consumed about 51,000 bales less at 
1.373m bales as compared to 1.423m bales during the same period 
last year.
Pakistan spinners produce about 1,700m kg of cotton yarn each year 
worth over $3bn, about a half of which is exported each year 
without any value addition.
Despite mid-year economic sanctions by the US after Pakistan became 
nuclear,export of textiles showed an impressive increase of 37 per 
cent last year both in value and volume but the recession in other 
major importing countries the overall performance of the textile 
sector was below normal, industry sources said.

Nawaz for privatization  at top throttle

ISLAMABAD, Feb 17: Prime Minister Nawaz Sharif has said that 
revamping of tax administration, boosting of exports, revival of 
sick units and privatization at top throttle are basic planks of 
economic agenda to place the economy on sound footing.

Inaugurating the Pakistan Business Summit here on Wednesday, the 
prime minister said the country was pulled out of quagmire after 
passing through economic turmoil as a result of nuclear explosion 
and subsequent economic sanctions.
He said as a result of the economic approach of the government, the 
economy is back on the rails and efforts should be made to place it 
on the sustainable path of fast economic growth.
Elaborating the economic agenda, he called for improvement in tax 
administration to ensure substantial boost in revenue collection to 
cater to the country's surging expenditures.
"If the revenue target of the current fiscal is Rs 350 billion then 
next year it should jump to Rs 450 billion and in five to seven 
years the collection should breach the level of Rs 1000 billion," 
he added.
Nawaz Sharif said the tax departments should come up to the 
expectation to realize the desired results of the economic 
He stressed on propelling exports as major impetus to the economic 
growth besides revival of sick industries to eliminate the growing 
menace of unemployment.
He assured optimal support of the government to the private sector 
in steering the economy towards the destination of self reliance.
He also described privatization as top priority of the government 
which was indispensable to improve the quality of products and 
efficiency of the institutions.
The institutions which were already burdening the national 
exchequer direly needed to be offloaded at brisk pace, he stated 
adding, "banking institutions are not required in the public sector 
as Pakistan Muslim League has no intention to oblige its workers 
through banking loans."
Nawaz Sharif stressed on facilitating unhampered inflow of foreign 
investment in the country, adding action taken against IPPs was not 
aimed against any individual but to safeguard the interest of the 
He noted marked improvement in the affairs of WAPDA since 
introducing army arrangements and said the reforming process was at 
fast pace with the recovery of billions of rupees of defaulted 
The prime minister while reiterating commitment of the government 
to liberalization, privatization, free market economy and 
deregulations regretted the decision of the government to freeze 
foreign currency accounts (FCAs) in post-blast period.
"Had there been a right advice, the decision to freeze the FCAs 
could have been avoided," he said but added, it is still debatable 
and nothing can be said with certainty in this respect.
While seeking support of the business community, the prime minister 
said: "We have taken you in confidence about the government 
policies and provided maximum incentives."-APP

PC receives 5 EoIs for HBL shares
Bureau Report

ISLAMABAD, Feb 16: The Privatization Commission has received five 
"Expression of Interests" from leading national and international 
financial groups and consortia for pre-qualification for the 
disinvestment of Habib Bank Limited (HBL).
Among those who have expressed their interest included Bank Al-
Falah, Karachi/Abu Dhabi Consortium, Al Yousef Group Mascat, The 
International Investor Kuwait, Daewoo Securities/ Daewoo 
Corporation, Seoul, Korea and Habib Bank Employees Associates 
Group, Karachi.
Privatization Commission had invited the Expression of Interest 
(EOI) from reputed Pakistani and foreign institutions (either 
investing solely or as part of a consortium) for pre-qualification 

for the privatization of Habib Bank, an attractive investment 
opportunity for investors interested in leveraging the bank's 
extensive domestic and international network in the first week of 
December, 1998. 
The government intends to sell a minimum of 26% share holding in 
Habib Bank along with transfer of management control, to a 
strategic investor. 
Investor specific structuring of the transaction will be given due 
HBL has a domestic network of 1721 branches and an international 
network of 65 branches and subsidiaries/affiliates in 26 countries 
including USA, UK, Singapore, Hong Kong, Australia, Turkey, UAE, 
Oman, Bahrain, Kenya, and Nigeria. HBL has full service licence 
covering commercial banking, consumer finance, credit cards and 
investment banking in Pakistan and most of the other countries 
where it is present. The HBL accounts for approximately 20 per cent 
of the advances, deposits, and trade business of the Pakistani 
banking sector.
Officials said the Government of Pakistan, in its sole discretion, 
reserves the right not to respond to any such request for 
preliminary or other information based on a review of the 
information provided by any interested investor or consortium. 
They added, this EOI is not intended to be nor should it be 
construed as: (a) any offer or invitation to acquire any securities 
of HBL; and (b) any representatives or warranty, express or 
implied, with respect to any statement made herein.

IPPs not allowed to remit debts
Haris Anwar

KARACHI, Feb 16: Five operational independent power projects, 
excluding Hubco, have yet not been allowed to service their debts 
to foreign commercial lenders, raising questions about their future 
debt outlook.
These IPPs have not serviced their debt liabilities since last July 
and are still awaiting approval by the government for remitting 
their dollar liabilities.
"In our case, there are about $11million debt arrears. But I don't 
know when the government will provide dollars to remit them out", 
said a chief executive of a Karachi-based IPP.
According to official sources, there are still over $200 million 
debt arrears which need to be cleared after the government lifted 
capital controls imposed during forex crisis. And the ministry of 
finance was busy making a list of those debts that would be 
rescheduled through London Club.
The central bank had also said last week that commercial debt which 
was not subject to rescheduling would soon be cleared.
Those IPPs which have defaulted on their debt servicing include: 
Kohinoor Energy Limited, Tapal Power, Gul Ahmed Energy, AES Lalpir 
Ltd and AES Pak (Pvt) Limited. 
"The debt of those IPPs where World Bank funding is not involved 
may go to London Club and that might be the government's 
consideration", said a banker.

But other financial experts are of the opinion that unless tariff 
issue is resolved, rescheduling of IPPs debt is not possible. 
"I think the government would deal with IPPs issue separately as 
yet they don't know their future income stream", said a leading 
financial analyst.
The Ehtesab Bureau, last month, had brokered a deal with five IPPs, 
who agreed to reduce their power tariffs from 6.1 cents per kwh to 
5.5-5.8 cents. But the deal was not approved by WAPDA resulting in 
a stalemate.
Energy experts say even if this agreement is implemented that would 
only bring a marginal reduction in the government's annual debt 
servicing liability. 
And the long-term solution would still be lying in their debt 
According to existing tariff structure, the government has to 
ensure an estimated $1.5 billion in the form of IPPs' debt 
servicing, profit repatriation and fuel imports.

PIA not to increase fares, Senate told

ISLAMABAD, Feb 16: Senate was told on Tuesday that PIA will neither 
increase its existing fares nor reduce them on any route.

During the question hour, PIA chairman Shahid Khaqan Abbasi assured 
the House that the organization would neither increase the fares on 
any route nor reduce them.
He informed the House that the government by proper planning, 
management and by taking special steps had pulled PIA out of 
financial crisis and now it was earning profit.
Mr Abbasi also told the House that none of the PIA aircraft was 
standing in hangar due to shortage of spare parts or any major 
He said complimentary tickets were being given to support the 
sports and educational activities in the country and added that 120 
complimentary tickets were issued by PIA for its marketing and 
promotional activities during the December, 1998 and January 1999. 
He further said that during 1994-96 thousands of people had 
travelled on such tickets.
RAILWAYS: Senate was also informed that no major railway accident 
took place after February 1998 due to strict safety measures 
adopted by the government.
During the question hour, minister in charge of Pakistan Railways, 
Syed Ghous Ali Shah, told the House that 250 accidents of different 
natures had taken place in Pakistan Railways from Jan 1, 1997 to 
Dec 31, 1998.
He said 196 persons had been killed and 240 injured in these 
accidents. He told the House that the loss to the assets of PR was 
estimated at Rs17.93 million.
He informed the House that 97 employees were suspended, dismissed 
and prosecuted by the courts on account of their involvement in PR 
accidents since Jan 1, 1997.
Ghous Ali Shah also told the House that out of these 97 employees, 
77 had been suspended, 3 removed and 17 prosecuted by various 
He said that the Railway provided 13,965 and 210 wagons for 
transportation of sugar directly to India via Wagah border and 

Karachi port respectively since February 1997 and added that 11,970 
wagons were provided to the sugar mills in the Punjab.
He also informed the House that government was taking all possible 
steps to improve the services of the Pakistan Railways.-APP

IMF team discusses reforms with officials
Bureau Report

ISLAMABAD, Feb 16: Leader of the five-member IMF review mission 
Sena Eken arrived here on Monday from Washington and held a formal 
discussion with government officials on a number of issues, 
particularly on advancing structural reform in the country.
Official sources told Dawn that Ms Eken met finance secretary 
Khalid Javed and special finance secretary Ghafoor Mirza and 
discussed with them further structural reforms, including giving 
greater autonomy to the State Bank of Pakistan and improvement in 
governance and public accountability.
The mission was told that the government was all set to achieve 
annual 5-6 per cent GDP growth, which could reinvigorate the 
private sector-led and export-oriented growth.
It was also told that the government was making fresh efforts to 
increase revenues and that the revised annual revenue target of 
Rs332 billion would be achieved by the end of the current financial 
year. Exports were also being improved, for which the IMF had 
provided additional $570 million.
The officials claimed that they would achieve macro-economic 
targets agreed with the IMF. The macro-economic objectives for 
1998/99-2000/01 are: (i) recovery of real GDP growth from 3-4 per 
cent during 1998/99-1999/2000 to a medium-term range of 5-6 per 
cent; (ii) reduction in annual inflation from about 10-11 per cent 
in 1998/99-1999/2000 to about 6 per cent in 2001/02; (iii) 
contraction of the external current account deficit from about 3 
per cent of GDP in 1998-99 to less than 1.5 per cent of GDP in 
2001/02; and (iv) stabilization of the total public sector-debt-to-
GDP ratio by 2001/2002.
To underpin such objectives, gross capital formation would need to 
be increased from less than 15 per cent of GDP in 1998/99 to about 
17 per cent in 2001/02.

Pakistan, Turkey, Turkmenistan sign MoU on energy

ISLAMABAD, Feb 15: Memorandum of Understanding among Pakistan 
Turkmenistan and Turkey to interconnect the energy transmission 
systems of the three countries was signed here on Monday.
Minister for Water and Power Gohar Ayub Khan, Turkish Ambassador 
His Excellency, Bozkurt Aran and Ambassador of Turkmenistan his 
Excellency Sapar Berdiniyazov witnessed the signing ceremony while 
senior officials of the three countries signed the MoU, says an 
official notification.

Taking into account the ECO member states' common intention to 
enhance economic development by means of mutual cooperation and 
optimal utilization of energy resources the three Muslim countries 
will interconnect their respective energy transmission systems.
For this aim a joint working group consisting of high-level 
representatives one each from Ministry of Waters and Power (MWPP) 
Ministry of Energy and Industry of Turkmenistan (MEIT) and Energy 
Telecommunication Industry & Trade Inc (STFPI) shall be immediately 
set up. To study the feasibility for interconnecting the systems of 
Turkmenistan and Pakistan a 500KV transmission line shall be built 
between Mary (Turkamenistan and Peshawar/Quetta (Pakistan).
The Joint Working Group shall be given the task to prepare a 
feasibility report on the technical basis of the project, variants 
of 500KV transmission line route and the interconnecting points to 
be linked between energy systems of the countries. The report shall 
be submitted to the related ministries within two months after the 
first meeting of the Joint Working Group.
The volume of electric energy to be transported between the 
countries as well as the tariff of energy shall be discussed once 
the project is considered feasible. Moreover each party shall pay 
the expenses of its own members of the Joint Working Group.-APP

Mobil keen to buy Pakistan State Oil

KARACHI, Feb 15: US oil giant Mobil Corp will seek to acquire 
state-run Pakistan State Oil when the government puts it up for 
sale, a senior Mobil executive said on Monday.
"As the government gets ready (for its privatization) we will be 
one of the players who would go for PSO," Zafar Usmani, deputy 
general manager of Mobil Askari Lubricants Ltd, told Reuters.
Mobil entered the Pakistan market in lubricants in 1997 in a joint 
venture arrangement with Army Welfare Trust, a business concern for 
the welfare of armed forces personnel.
Usmani said Mobil will only enter into full-fledged fuel 
distribution in the country by acquisition of an existing oil 
marketing company.
"Talking about distribution, we are looking at PSO very very 
closely," he said.
The government plans to privatize Pakistan State Oil, the largest 
oil marketing and distribution company in the country, but has not 
fixed a deadline for its sale.
Mobil is the first firm to formally show an interest in acquiring 
PSO, which commands a 76 per cent share in Pakistan's petroleum 
distribution market and has more than 3,000 outlets.
Usmani said he was not sure about the time frame for when the 
government would put Pakistan State Oil for sale, but said he did 
not expect a delay.
"I am really positive about the government's approach to 
privatization. I don't think there will be a delay," he said.
He said the company has made "its intentions clear" about its 
interest for Pakistan State Oil, but was aware that the 
privatization of the company would take some time.
"Its a long drawn process...Look at the time it has taken for 
privatization of PTCL," he said.
Pakistani government plans to sell a 26 per cent stake and transfer 
management control of the telecom utility by end June but after 
several delays in the last three years.
Usmani said the best possibility to enter into the distribution 
business was through acquiring existing facilities.
"I think for any oil marketing company to come and start building 
retail pumps will not be feasible because of the highly regulated 
petroleum sector in Pakistan," he said.
The company says it has captured a four per cent share in the 275 
million litres lubricants market.
"We had a fantastic 1998....We made an investment of $10 million in 
1998 and also developed 63 lubricant shops throughout the country," 
he said.
He said the company plans another 150 shops in 1999 with an 
investment of $5 million.
Pakistan State Oil leads the oil marketing companies in the 
lubricants business with a 20 per cent share followed by Royal 
Dutch Shell Group unit Shell Pakistan and Caltex.    
But more than a 60 per cent share of the lubricants market was with 
local companies. Fake and smuggled products also had a sizeable 
market share, industry sources said.

Usmani said the lubricant business attracted investment because it 
was deregulated and said he expected the government to fully 
deregulate the petroleum sector to tap more investment.-Reuters

Stocks up, volume of business falls sharply

KARACHI, Feb 19: The Karachi Stock Exchange closed on a positive 
note on Friday with the KSE-100 index registering a gain of 2.53 
points. The index could recoup nearly half of the loss of 4.47 
points a day earlier.
Volume of business, nonetheless, stood reduced for the third 
session running to 62.7 million shares, down from 98.3 million 
shares traded on Thursday and 122.0 million on Wednesday.
The firmness of the market on the settlement day on Friday was a 
good sign, said one analyst, though it could also be due to 
oversold position in some of the leading scrips.
The KSE-100 index closed at 913.78 points on Friday, after starting 
the day at 911.25 points. Of the 152 active scrips, 54 ended in the 
plus columns and 49 remained easy and an equal number of scrips 
closed at their previous values. Market capitalization improved by 
Rs 731.8 million to Rs 259.3 billion, from previous day's Rs 258.5 
The bulls seemed to draw strength from a little bit of cheer and 
hope over the forthcoming visit of the Indian prime minister on 
Saturday. "If the bus-diplomacy helps to ease the perennial strain 
in relationship between the two countries, the stock index should 
surely head north," said one broker.
Overall, the index had gained 43 points during the week and many 
optimists looked near term target of 1,200 points to be quite 
achievable. With the resumption of IMF and World Bank lending 
programmes and the partial lifting of sanctions, bulls were 
beginning to enter the rings, brokers said.
A stock strategist maintained that on the basis of fundamentals, 
most blue chip stocks at the KSE appeared to be undervalued at 
around 6 times the 1999 earnings compared to two-digit price-to-
earnings ratios, prevailing in most of the regional markets.
The recently released results of some heavy weights such as PTCL, 
Hubco and Engro were all in line, if not better than the best of 
market expectations, analysts said.
Most brokers, however, agreed that the current problem at the 
bourses was the lack of funds. If liquidity could be pumped in by 
the local or the foreign investors, the market seemed ripe for a 
long-awaited bullish run.
Among the market related developments, the news that Hubco tariff 
issue may be taken up on Monday, February 22, for the first hearing 
in the Arbitration Courts of the International Chamber of Commerce 
(ICC), was received with enthusiasm.
The hearing that is likely to centre on the disputed second 
amendment in the Power Purchase Agreement (PPA) was seen by the 
market as a major step forward. The Hubco share gained 30 paisa on 
Friday to close at Rs 12.65, from Rs 12.35 a day ago, after 
touching the highest Rs 12.70; a total of 17.4 million shares 
changed hands in the Hubco scrip on Friday.
Ahead of the volume leaders for the day was PTCL, which saw 15 
paisa rise to Rs 17.40 on trading in 17.4 million shares; Pakistan 
State Oil shed 45 paisa to close at Rs 63.70 on a turnover of 6.5 
million shares as rumours of a possible takeover by Mobil simmered 
Fauji Fertilizer on a volume of 4.7 million shares receded by 5 
paisa to Rs 44.30, though the company was expected to continue its 
growth momentum. KESC was steady by 5 paisa to Rs 8.45 with a 
business recorded in 3.1 million shares.
Major gainers for the day were led by Parke-Davis, which posted Rs 
25 rise to close at Rs 350 on 100 shares; Merit Packaging firmed up 
by Rs 6.78 to Rs 28 on 1,000 shares, as the company turned in Rs 
3.5 million in pretax profit for the half year ended December 31. 
1998; Glaxo Wellcome leapt up by Rs 6 to Rs 35 on a slight volume 
of 100 shares.
DEFAULTING COMPANIES: On the defaulters' counter, Al-Asif Sugar 
Mills saw trading in 100 shares at the overnight value of Rs 1.25. 
On the auto & allied engineering sector, Suzuki Motorcycle also 
stirred with a trading in 500 shares though the price remained 
pegged at Rs 1.75.
BOARD MEETINGS: Pak Suzuki Motor Co. to hold its board of directors 
meeting on February 19; Lever brothers on February 22 and the board 
of ICI Pakistan would meet on March 2.

Back to the top
A hundred years ago

Ardeshir Cowasjee

OFF I went to another memorial meeting yesterday, February 13, with 
no moans involved, to commemorate a patriarch of the family who 
died one hundred years ago to the day. We, his descendants, now 
spread all over the world, opened up our jeroboams and drank to his 
Hormusjee Jamsetjee Rustomjee, my maternal great-grandfather, died 
in Karachi whilst Victoria Regina Imperatrix was Empress of India, 
and "My name is George Nathanial Curzon, I am a most superior 
person, My cheek is pink, My hair is sleek, I dine at Blenheim once 
a week" was that most viceregal of Viceroys lording it over the 
land from Delhi.
The editor of "British-Indian Commerce" (published in London) in 
his issue of March 15, 1899, wrote: "Only six months ago, British-
Indian Commerce contained the illustrious story of the life of one 
of the most interesting personalities among the merchant princes of 
India, Mr H.J.Rustomjee, of Kurrachee. Mr Rustomjee was then in the 
full flush of healthy vigorous manhood, eager in the enjoyment of 
all the good things of life, and was looking forward to a pleasant 
journey through Europe on his way homewards to India. On the 15th 
ultimo, a telegram from India announced his sudden death and when 
the sad intelligence was circulated amongst his many friends in the 
City and the West End, the feeling of grief and sense of personal 
loss found keen expression.
"On behalf of those friends and of ourselves, we offer the 
sincerest condolences to the members of the Rustomjee family. They 
have lost an affectionate father and relative, and the firm which 
he founded mourns the departure of one whose strongly developed 
mercantile instinct, wide business experience, sound judgment, and 
almost daring enterprise have made the house of Rustomjee and 
Company uniquely famous throughout India and in most of the 
manufacturing centres of the world. The story of his career is as 
he was wont to say, only typical of that of a large number of other 
great Indian merchants and millionaires. His beginnings were humble 
enough; he was a young merchant, however, at 15 years of age. He 
was only 53 at the time of his death. For forty years his life had 
been a long series of business successes. He steadily ascended the 
ladder of prosperity, till he had placed his foot firmly on the 
topmost rung. In social life, he was a racy conversationalist, full 
of anecdote and shrewd observation of men and nations. His command 
of the English language was perfect, and his social gifts made him 
popular in all the commercial capitals of Europe."
In 1891, he built for himself at Karachi a fine building to house 
his business empire, described thus in the Sind Gazette of November 
10 of that year: "Mr Rustomjee has taken the utmost pains to set 
off his huge building to the greatest advantage .... the building 
itself is certainly one of the handsomest and imposing structures 
of its kind, not in Karachi or in the province only, but in India. 
The architecture is purely Italian and the facade closely resembles 
that of the New Dresdner Bank at Berlin .... The site is admirable, 
occupying a large space of over 8,000 square yards near the point 
where the two principal roads of the town, the Bunder and the 
McLeod roads converge, being thus in the very heart of the business 
parts of the city. Mr H. J. Rustomjee's mansion has a frontage of 
100 feet and is constructed wholly of stone, having three stories, 
the total height being over 60 feet."
HJR was a firm believer that it was the bounden duty of the rich to 
look after their less fortunate brethren, the old Parsi maxim being 
that a man should give to his country and to humankind more than he 
takes from them. He knew that education was the key to progress and 
prosperity. He also realized, way back in those day, the importance 
of learning English, the universal language. He ensured that all 
the girls of the family were sent to convent schools where English 
was the medium. He was also a firm adherent to the belief that a 
man of means must participate in the affairs of his city. He was a 
member of the Municipal Council and represented the people as a 
trustee on the Board of the "Port of Karachi (Kurrachee), Sindh, 
West Coast of India."
His charities were vast. He was the first in Karachi to build a 
low-cost housing colony. Schools, hospitals, parks and playgrounds 
always had his support. He, along with Dayaram Gidumal, Prem 
Kewalram Shahani's paternal grandfather, contributed towards the 
establishment of the renowned Dayaram Jethmal Sind College. The 
norms of civilized society, one may say.
Also in the issue of "British-Indian Commerce" of March 1899 was an 
interesting item on Curzon's gunboat diplomacy and another amusing 
one on his wife.
Lord Curzon had "acted with commendable promptitude in dealing with 
the Seyid of Oman, or as he is sometimes called, the Imam of 
Muscat. This potentate recently consented to cede a coaling station 
at Bunder Jisseh to France. It was claimed by the French that such 
a station was necessary in the interests of French commerce which 
is in that part of the world of very small dimensions. Considering 
that we pay the Sultan a very handsome subsidy of Rs.7, 200 a 
month, that we have had treaties with his predecessors for more 
than a hundred years, and that since 1800 we have the right of 
maintaining a Resident in Muscat, it could hardly be expected that 
we should suffer the intrusion of a foreign power. Curzon 
protested, and backed up his protest with a threat of bombardment 
by the British Admiral who had three war vessels in the port of 
Muscat at the time. Under this pressure, the Sultan gave in and 
there the matter now stands at present."
Lady Curzon "appears to have made a complete conquest of the native 
papers. An 'appreciation' in the 'Bangabasi,' the leading Hindu 
vernacular daily of Bengal, is magnificent: 'Her colour is like 
that of molten gold, its whiteness having already assumed a tinge 
of red in the warm climate of this country. Her teeth are like a 
set of pearls, her waist is beautifully slender. Her raven tresses, 
setting off the whiteness of her white complexion, make her look 
like the very image of Saraswati. Her well-shaped head, with its 
black hair, is beautifully placed upon her swan-like neck. Her eyes 
are not dark, neither are they tinged with red. Their colour is 
rather handsomely purple. Ever restless as they are, they are 
beaming with intelligence. Lady Curzon bears in her handsome person 
all the auspicious marks of prosperity. Her forehead is small and 
narrow and her voice resembles that of the cuckoo."
Now, we cannot possibly blame Macaulay for this outpouring of 
English prose, can we?
Curzon landed in India on December 30, 1898. According to Hugh 
Tinker in his book 'Viceroy,' "An immediate impression was made by 
the radiant beauty of Mary, his young wife. As an American with an 
immensely rich father, she was criticized by the Burra Memsahibs of 
Calcutta. As she said herself, she stood for hours 'wearing my 
India-rubber smile.' In her letters she admitted that she hated 
India, or rather the British facade of India. She especially 
disliked Simla: she burst into laughter at her first glimpse of the 
Viceroy's Lodge, 'Quite the most amazing and fantastic erection' 
she had ever seen."
Curzon was followed by Minto, Hardinge, Chelmsford, Reading, Irwin, 
Willingdon, Linlithgow, Wavell and finally Mountbatten. Whatever 
they may have been, whatever their shortcomings or aims, they were 
not crooks. They administered the country with a cadre of some 
thousand civil servants, the majority of whom were not thieves. 
They were sent out to do a job, and they did their job. They did 
not work towards the manifest detriment of the people.
However, as far as the natives were concerned the proverbial 
mother-in-law had to be got out of the kitchen. Fifty years down 
the line and we have lost the larder. Each cook who manages to grab 
the knives robs the household dry. They all feed us on a starvation 
diet of lawlessness and lies, and that cannot sustain us for long.
Can we get those who lunch at Raiwind and Larkana to read Philip 
Woodruff's two volumes on 'The Men Who Ruled India,' - 'The 
Founders' and 'The Guardians'? Can one hope that their acolytes can 
prevail upon them to so do?

Irfan Husain

FOR just a little while, imagine a scenario in which relations 
between India and Pakistan were perfectly normal; that there was no 
Kashmir problem; and both countries therefore did not have to pay 
for the bloated defence establishments that currently hobble the 
two economies.
In this utopian subcontinent, things would be very different than 
they are today. Quite apart from the fact that massive amounts 
would be available for building the physical and social 
infrastructure, the difference in attitudes would be even more 
marked. For instance, politicians on both sides would no longer 
have each other to use as scapegoats for everything that was wrong 
in the two countries, and would hence have to focus on the hard 
task of delivering good governance instead of simply mouthing 
jingoistic slogans.
Pakistan, in particular, would be a very different country. Without 
the threat of armed conflict with our giant neighbour, the army 
would not have acquired the massive influence it wields today. 
Indeed, we would probably not have experienced the three crippling 
bouts of martial law that stunted and deformed Pakistan's political 
development. Taking this exercise in wishful thinking a step 
further, it can be argued that in a non-militarized Pakistan, East 
Pakistanis would not have felt so alienated and thus might have 
stayed on in the federation, sparing themselves the bloodbath of 
the 1971 civil war that resulted in the birth of Bangladesh.
And without Zia's attempts to seek legitimacy through his brand of 
Islamization, the genie of sectarianism might still be in the 
bottle instead of spreading murder and mayhem across the land. 
Pakistan may have been a more forward looking and sane place 
instead of the madhouse it has become. India, too, might not have 
witnessed the upsurge of rabid Hindu nationalism that is eroding 
its secular foundations. Without the hysteria and paranoia that 
surround relations between the two countries, parties like the BJP 
and Shiv Sena may not have found the support that they have been 
getting in recent years.
Pleasant though this dream is, it is time for a reality check. The 
last 52 years have seen a steady escalation of tension between the 
two neighbours, punctuated by three wars. A mindless hatred now 
colours the discourse between them, and powerful forces on both 
sides have a vested interest in preventing normalization of 
The demonstrations planned by the Jamaat-i-Islami to protest 
against the Indian PM's visit indicate the level of insanity that 
now governs relations between India and Pakistan. This knee-jerk 
reaction is not unlike Shiv Sena activists digging up a cricket 
pitch to prevent a cricket match between the two national teams.
If Nawaz Sharif has been consistent in anything, it is his desire 
to improve ties with India. Unfortunately, he has been frustrated 
by the fact that he has been forced to use the same old cliche-
ridden foreign office briefs that have got us nowhere in the last 
five decades. In addition, he has the defence establishment 
breathing down his neck. Consequently, whenever he has talked about 
improving relations with India, he has been obliged to repeat the 
self-determination mantra, and repeat yet again the UN Security 
Council resolutions.
For any progress to be made in Indo-Pak relations, we will have to 
delink Kashmir from the other elements that make up relations 
between sovereign states. Trade, travel and tourism must be opened 
up; sports and cultural exchanges need to be promoted; and a free 
flow of information, books and newspapers should be encouraged. 
These measures will reduce tension and make it easier to deal with 
the intractable Kashmir issue after a period of, say, five years. 
After all, we have been living with the present status quo for five 
decades; another five years won't make much difference. Meanwhile, 
we can get on with life. After all, it is not India that is being 
penalized by our "Kashmir first" stance: our confrontationist 
policies are costing us much more.
Pakistanis need to wake up to the fact that in real life, 
possession is nine-tenths of the law. Irrespective of the rights 
and wrongs of the unending debate over Kashmir, we have to face the 
reality of Indian occupation of a large part of the state while we 
occupy another. This situation is not about to change, so instead 
of keeping up the plebiscite drumbeat the world is deaf to, we 
might as well get on with things rather than rant on about the 
injustice of history and geography.
And while we keep trotting out the well-worn UN resolutions calling 
for a plebiscite to determine the will of the Kashmiri people, we 
conveniently forget that the same resolutions called for a complete 
withdrawal of Pakistani forces from all parts of the state as a 
pre-condition to the vote. We never fulfilled this condition, thus 
giving the Indians an excuse to back out of their commitment. 
Subsequently, India made the contested state a part of the Union, 
thus making the UN resolutions null and void in their books.  Now 
we can - as we have been doing these last fifty years - continue 
debating the legal niceties of the whole question until the cows 
come home. The Indians are not going to hand us their bit of 
Kashmir on a platter, and we have neither the military might nor 
the international support needed to change the status quo in our 
favour. Sooner or later, there will be an agreement dividing the 
state along the present Line of Control. Reaching this 
understanding sooner rather than later will save us a lot of money 
and a lot of frustration.
Obviously, there will be considerable resistance from the large 
number of ostriches who inhabit this country. But the Nawaz Sharif 
government with its huge parliamentary majority can push the deal 
through. So when the two prime ministers meet over this weekend, 
they would be well advised to conduct the discussions without the 
briefs their respective defence and foreign affairs ministries have 
prepared for them. If they really wish to break out of the rigidly 
sterile positions the two countries have adhered to for decades and 
solve problems rather than just repeat hackneyed cliches, they 
should be prepared to break fresh ground and take risks.
Anything less will be more of the same.

Pakistan Win first test match of Asain Test Championship 
CALCUTTA, Feb 20 : Pakistan won the first test match of the Asian 
Test Championship against India by 47 runs. India needing 279 runs 
to win, were all out for 232 runs. Shoaib Akhtar took 4 wickets, 
Saqlain Mushtaq 3 and Wasim Akram captured 2 wickets to take 
Pakistan to victory. Saeed Anwar and Srinath were together awarded 
the "man of the match" award. 

A section of the crowd caused trouble in the morning session and 
the match was suspended for some hours, during which bonfires were 
lit inside the stadium. Play was resumed after the order was 
restored, and most of the spectators were removed from the stadium 
by the security forces. 

Scores : Pakistan 185 & 316, India 223 & 232. -Bureau Report

Pakistan overwhelm India 4-2 to clinch hockey series
By A.Majid Khan

KARACHI, Feb 18: Pakistan played with pride and passion to 
overwhelm Bangkok Asian Games champions India by four goals to two 
in the sixth Test to take an unbeatable 5-1 lead to clinch the 
nine-match hockey series in a spectacular encounter on Thursday 
here at the Hockey Club of Pakistan Stadium.
Left-winger Naveed Asim, turned out to be hero of today's series-
deciding match and was adjudged as Man-of-the match by netting two 
successive goals - second and third - as Pakistan gained a 
commanding 3-0 lead at the breather before a disciplined crowd of 
about 10,000. Skipper Dr Atif Bashir netted the opening goal and 
Mohammad Sarwar increased the lead to 4-0 before India fought back 
to reduce the margin through Kamal Horo and Baljit Singh Dhillon 
After the match both Pakistan and Indian teams had a round of the 
ground by waving their hands and the sporting crowd gave standing 
ovation for entertaining them by displaying an attacking and clean 
Before the start of the 70-minute encounter, the teams were 
introduced to chief guest Let-Gen (Rtd) Moinuddin Haider, the 
Governor of Sindh, who watched the match for some time before he 
left to attend other pressing engagements.
Pakistan Hockey Federation Chief Akhtar Rasool Chaudhry, who 
arrived here from Lahore, gave away the prizes and souvenirs.
Both Pakistan and Indian teams are scheduled to fly by tomorrow 
evening flight for Peshawar to play their seventh match of the 
series on Feb 20 (Saturday). From there the teams will proceed to 
Rawalpindi for their third match on Feb 22 and the last encounter 
of Pakistan leg of five matches at Lahore on Feb 24. The tourists 
will be playing a second time in Lahore after their opening match 
on Tuesday, which they lost also by 2-4.
Pakistan, having five new faces in their squad, put up splendid 
performance particularly in the first session as they dominated the 
exchanges with great amount of authority. The forward line, 
inspired by imaginative display of centreforward Atif Bashir, the 
captain, mounted great amount of pressure from the very start, 
hardly allowing India's new-look outfit to settle down.
The greenshirted Pakistanis launched their attacks from the both 
the flanks and leftwinger Naveed Asim excelled in toring apart the 
Indian defence. Attackers Irfan, Sarwar and Khalid remained 
constant threats as they invariably broke the rivals territory in 
search of goal.
Well supported by half -line of Irfan Yousuf, Mohammad Saqlain and 
Mohammad Waseem, Pakistan forced two successive penalty corners in 
two minutes of the start of the game but without any success.
However, after making a few abortive attacks Pakistan forged ahead 
with a magnificent 10th minute goal by skipper Atif Bashir off a 
well-timed pass from rightwinger Mohammad Irfan.
India struggled to stem the pressure but fell further in deficit 
seven minutes later as speedy leftwinger Naveed Asim consolidated 
the lead pounding on remarkable gap pass by insideleft Khalid Jr to 
beat Indian keeper Jagdis Ponnappa.
Pakistan remained in control of the proceedings as they continue to 
play the attacking game, forcing the touring India defend their 
goal. Atif Bashir was put through by centrehalf Mohammad Saqlain 
but the centreforward missed the target in 24th minute.
India counter attacked in a more planned way as Pakistan half line 
and the defence showed sign of creakiness. The tourists forced four 
abortive penalty corners in ten minutes before the half time after 
getting the first in the 12th minute.
However a minute before the change of ends, Naveed Asim rose to 
great height with a masterly goal off a fine pass from seasoned 
Sarwar. Pakistan were 3-0 up.
India, unquestionably, put up a much improved showing during the 
second half play forcing no less than eight penalty corners 
bringing their tally to 13 to Pakistan's three. Baljit Singh 
Dhillon, Rajesh Chauhan were outstanding in the India's second half 
attacks with Mohammad Riaz feeding his forwards with well-timed 
Pakistan defence looked vulnerable and goalkeeper Mohammad Qasim 
brought about half a dozen saves as India, apart from missing four 
good scoring chances, also failed to convert any penalty corner 
before the visitors fell further into arrears with a 57th reverse 
hit by Sarwar (4-0).
India retaliated in full force and Kamal Horo reduced the margin 
after accepting a pass from Baljit Saini (1-4).
Fighting India continue to made inroads in the Pakistan territory 
and seven minutes before time forced their last and 13th penalty 
corner that resulted in the penalty stroke , converted by Baljit 
Singh Dhillon (2-4).
Pakistan counter-attacked only to see Sarwar's try was stopped by 
Ponnappa before the encounter end in a 4-2 victory for the home 
side. The teams:
PAKISTAN: Mohammad Qasim, Sohail Abbas, Danish Kaleem, Irfan 
Yousuf, Mohammad Saqlain, Mohammad Waseem, Mohammad Irfan, Mohammad 
Sarwar, Atif Bashir ( Captain ), Mohammad Khalid jr, Naveed Asim, 
Mohammad Nadeem, Ahmed Alam, Mubashir Mukhtar, Amir Saleem, Asad 
Qureshi, Ejaz Rasool and Naveed Iqbal.
INDIA: Jagdish Ponnappa, Dilip Tirkey, L.Barla, Anil Aldrin 
(Captain), Baljit Saini, Mohammad Riaz, Thirumal Valavan, Nausheen 
Singh, Baljit Singh Dhillon, Gagan Ajit, Kamal Horo, Rajesh 
Chauhan, Ravinder Singh Sukhbir S.Gill, Gursewak Singh and 
Umpires: Garth Proudfoot (South Africa) and Philip Schellekens 

Uzbekistan beat Pakistan 4-1 in Davis Cup

TASHKENT, Feb 14: Pakistan was beaten in both reverse singles by 
Uzbekistan which won Davis Cup tennis Asia Oceania Group One tie 4-
1 on the final day at Younusabad sky dome indoor courts here 
On a luckless day, Aisam-ul-Haq was beaten by top Uzbek star Oleg 
Ogorodov in four sets 4-6,3-6,6-3,1-6, after two hours and twenty 
five minutes. Asim Shafiq failed to offer courage and was beaten 0-
6, 0-6, in just forty minutes before a handful holiday crowd as 
rain restricted a full house in the beautiful tennis arena in the 
world, second best after Australian opens courts in Melbourne.
Pakistan carved out only win in the three-day tie on the opening 
day in singles through Aisam before Khaliq lost the opening match. 
Aisam and Khaliq were beaten in doubles on second day. Pakistan 
will now play Lebanon, beaten by Japan in the other Davis Cup tie 
in Japan, in play off tie in April to remain in Group One. Pakistan 
had qualified for Group One after ten year since 1989.
Aisam who turned a professional last month, gave best performance 
to win the third set to put a thrill in the match after being two 
sets downed. But he failed to repeat skillful game in the fourth as 
Oleg dropped just one point to race through victory amid applause. 
Experienced prevailed over youth as 27-year old Oleg broke Aisam 
serves once in first and second sets and twice in fourth set. Aisam 
failed to return most of force full serves of Oleg who depended 
much on accurate shooting from base line, taking enough advantage 
of his height on blue coloured fast paced plastic courts.
19-year lahore born Aisam who broke Oleg in second and third sets 
hit altogether three aces but double faulted fifteen times in the 
match. He equalised at 1-1, 2-2 and 3-3 in the opening set after 
making strenuous efforts with the aid of delightful serves and 
superb returns.
Aisam made last productive attempt by making it 4-4 with a bunch of 
lovely fore hand shots from the mid of the court as seasoned Oleg 
smartly killed the ball with volley shots to take lead in the match 
after 41 minutes hard work. Oleg, ranked 193 at ATP ranking list, 
took 3-0 lead in the second set which he won in 34 minutes after 
breaking Aisam's serve. Aisam playing with a troubled ankle seemed 
bothered by the injury after making unproductive attempts to pick 
the ball from the far corners. But he showed courage by levelling 
at 3-3 with brilliant placing in mid of the court to surprise Oleg.
Team coach and non playing captain Ali Akbar said it was bad to 
loose both the reverse singles as well as tie but said Uzbek side 
was much rich in experience and played better.

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