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DAWN WIRE SERVICE
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Week Ending : 26 June 1999 Issue : 05/26
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Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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NATIONAL NEWS
+ Nawaz visits forward artillery position
+ Peace linked to Kashmir solution, Zinni told
+ Pakistan, China to sign accord on fighter aircraft development
+ National Assembly passes Finance Bill
+ Balochistan PA okays Rs22,672m budget
+ No new taxes: Ghous presents Rs58.16 billion Sindh budget
+ No IMF pressure to increase power tariff: Wapda chief
+ G8 calls on Pakistan, India to hold talks
+ Supreme Court orders on FCAs: State Bank looking into legalities
+ Pakistan's second satellite ready for launch
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BUSINESS & ECONOMY
+ CBR computerizing tax refund system
+ SBP asks banks to implement court orders
+ Germany wants to expand trade ties
+ Dar discusses revival of sick units
+ Fresh checks on inter-bank forex deals
+ WorldTel to invest $500m in TeleCard
+ 90% CED target achieved in 11 months
+ Many duties withdrawn, taxes lowered
+ Expansion of ST dept approved
+ KSE 100-share index declines by 12.66 points
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EDITORIALS & FEATURES
+ Arbiters of justice - 2 Ardeshir Cowasjee
+ A fiasco in the making Ayaz Amir
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SPORTS
+ Australia lift Cricket World Cup '99
+ Hockey: Pakistan out of the next Champions Trophy
+ World Cup cricketers to face EB music
+ Shahbaz flays PHF for set-back in hockey
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NATIONAL NEWS
990625
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Nawaz visits forward artillery position
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GULTARI, Shakma Sector, June 24: Prime Minister Muhammad Nawaz
Sharif visited an artillery position here on Thursday and announced
Rs. 1 lakh for the artillery battery.
Nawaz Sharif shook hands with the soldiers manning a gun which
could fire upto 23 kms and told them, "The nation's, mine and
General Musharaf's prayers are with you."
Later, the prime minister was shown some Indian weapons recovered
on May 19, by the Pakistan Army from the six Indian soldiers whose
bodies were handed back to India. These included a machine gun, a
mortar, a dagger and some other arms.
Earlier, the prime minister along with Chairman Joint Chiefs of
Staff Committee and the Army Chief General Pervez Musharraf visited
the Skardu Military Hospital to inquire about the health of the
injured soldiers.
Meanwhile, the prime minister announced 10 per cent and 25 per cent
raise in the compensatory allowance of troops serving at an
altitude of 13,00O feet and above it, respectively.
This announcement was made by him while addressing troops, 14 kms
off the Line of Control and northeast of the Kargil Sector, here
Thursday.
He said the compensatory allowance of soldiers serving at the
height of 12,000 or 13,000 feet would be increased from the present
40 per cent to 50 per cent. But for those who were serving above
the height of 13,000 feet, the allowance would be raised from 50
per cent to 75 per cent.
Nawaz Sharif said the Skardu Hospital was also being given the
status of combined military hospital while other facilities,
whenever proposed by the Army Chief Pervez Musharraf, would also be
provided there.APP
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990626
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Peace linked to Kashmir solution, Zinni told
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Ihtasham ul Haque
ISLAMABAD, June 25: Prime Minister Nawaz Sharif has told the
visiting US General Anthony Zinni that the current crisis requires
a balanced and constructive approach if durable peace is to prevail
in the region.
According to a handout issued by the government here on Friday, the
commander-in-chief of the US Central Command called on the Prime
Minister Muhammad Nawaz Sharif and discussed the Jammu and Kashmir
issue in its entirety.
General Zinni conveyed to the prime minister a message from
President Clinton, underscoring the need for de-escalation of the
current situation in Kashmir and the importance of a peaceful
resolution of the Jammu and Kashmir dispute.
The prime minister regretted that for more than 50 years, the world
had evaded resolving the Kashmir dispute in accordance with the
United Nations resolutions. Referring to India's repeated
violations of the LoC, the prime minister recalled Pakistan's
proposals for strengthening the UNMOGIP and stationing of neutral
observers on the LoC.
The prime minister stated that the confrontation in Kargil was
symptomatic of the problems that had bedevilled Pakistan- India
relations over Kashmir. He emphasised that unless a peaceful
solution of the Jammu and Kashmir dispute was reached in the
shortest-possible time, situations like Kargil would continue to
erupt, threatening peace and endangering the stability of the
region.
Pakistan is committed to its obligations under the Simla Agreement
which entails mutual respect for the Line of Control pending the
final settlement of the Jammu and Kashmir issue.
General Zinni undertook to convey Pakistan's point of view to
President Clinton who, he said, was interested in promoting a
comprehensive solution of the Kashmir dispute.
Meanwhile, sources close to the government said the prime minister
had made it very clear to the US general that because Kargil was a
part of Kashmir, any solution meant for de-escalating the situation
at Kargil would have to take the entire Kashmir dispute into
consideration. You cannot separate the two issues, Nawaz reportedly
told the US general.
Sources said that the prime minister once again urged the US
general to avoid taking a narrow view of the situation and said the
US needed to resolve the issue by discussing it with both India and
Pakistan.
The US general had held a detailed meeting with the Chairman Joint
Chiefs of Staff Committee and the Chief of Army Staff (COAS)
General Pervez Musharraf on Thursday but the two could not
reportedly arrive at any agreement which led the US general to
extend his visit by a day to call on the prime minister.
Meanwhile, it was also learnt that the armed forces had been
ordered to be prepared to meet any challenge. They have been told,
in the light of authentic intelligence reports, that India could
try to cross into the Pakistani side of the Line of Control (LoC)
if it failed to make any gains in the Kargil Sector.
"There is almost a red alert situation, though we still believe
that there is no chance of the Kargil conflict leading to a full-
fledged war between the two sides," said a military source.
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990624
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Pakistan, China to sign accord on fighter aircraft development
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ISLAMABAD, June 23: Pakistan and China will formally sign four
agreements, including the much-awaited deal to develop indigenous
Super Seven(S-7) fighter aircraft, during Prime Minister Nawaz
Sharif's four-day visit to China, an official source told NNI on
Wednesday.
The source said:"The agreements will further enhance defence ties,
besides cooperation in economic field between the two time-tested
friends."
Defence Secretary Lt- Gen (retd) Iftikhar Ali Khan and other senior
defence officials would accompany the prime minister during his
visit to China, beginning on June 28, the source added.
Pakistan and China had already inked a memorandum of understanding
(MoU) about the S-7 in 1997, which would be formally signed during
Mr Sharif's visit, the source said and added that the S-7 project
would meet fighter plane requirements of both the air forces as
well as offer for sale the aircraft in the international market.
The source said both Pakistan and China had completed spadework of
the project and fixed up contract details, according to which the
latest revised timetable called for the first single-engine S-7 to
fly in 2001. Production deliveries of the fighter would start in
Islamabad and Beijing by 2003 and mass production in 2005, he
added.
The source said Pakistan planned to share with western avionics
partners its version of S-7 that also included weapon system for
the fighter. PAF expected to select multimode Pulse-Doppler Radar,
he said and added that avionics contracts were Alenia, GEC-Marconi
and Thomson-CSF.
Pakistan also wanted the aircraft to be fitted with precision-
guided munitions, Raytheon A1M-9L dogfight missiles, and its first
beyond visual range (BVR) weapon to counter India's expected
acquisition of Vympel AA-12 Adders and, possibly, the Rafael Python
4.
Foreign Minister Sartaj Aziz and Foreign Secretary Shamshad Ahmed
jointly held a detailed meeting with the prime minister on
Wednesday. The programme for Mr Sharif's visit to China was given a
final shape, an official said.
The prime minister would also brief Chinese leaders on the security
situation in the region in the context of heavy Indian troop
movement along the Line of Control and the international border
with Pakistan, the official added. NNI
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990626
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National Assembly passes Finance Bill
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Bureau Report
ISLAMABAD, June 25: National Assembly on Friday passed the Finance
Bill for the year 1999-2000 and rejected a number of amendments to
the Bill moved by the opposition.
Opposition members belonging to Awami National Party and Pakistan
People's Party during the third reading of the Bill expressed
serious reservations on an amendment which gives powers to the
Federal Government to change Customs and excise duty acts through a
notification.
The Constitution was a "cementing" and "binding" force of the
Federation of Pakistan and it should not be violated or by-passed,
ANP leader Asfandyar Wali said accusing the government of
undermining the Constitution.
He said laws pertaining to money changers, Modarbas and
constitution of Security and Exchange Commission did not come under
the purview of the Bill and these should alsobe presented in the
Senate, the upper house of the parliament. He called upon the
government not to make such issues a matter of ego and preserve the
sanctity of the two houses of the parliament.
Mir Hazar Khan Bijarani of the PPP (SB group) said that the
amendment in Customs and excise duty acts, which gives powers to
the Federal Government to delete or include anything in these laws,
was a clear violation of the Constitution.
He urged upon the government not to reduce the position of
Parliament to a rubber stamp body only.
Deputy Opposition Leader Syed Khurshid Shah also expressed concern
over the amendment. He said the powers entrusted to the parliament
by the Constitution should not be changed.
He lashed out at the Federal Government's decision to implement the
Prime Minister's Housing Scheme through an officer of Ehtesab
Bureau.
"They lack confidence in their own ministers," he said. The housing
minister, who belongs to the province of Sindh has been completely
by-passed in the implementation of this scheme, which envisages
construction of 1,50,000 houses in the country, he added.
He alleged that the government wanted to extract commissions and
kick-backs from this huge scheme and that was the reason the
government wanted to implement the scheme through an officer of
Ehtesab Bureau.
While winding up the debate on the Bill, Finance Minister Ishaq Dar
refuted opposition's claim that the government by assuming the
powers to amend the Customs and excise duty acts through an
amendment was violating the Constitution.
He said there was no anti-dumping law in the country and the
government required such powers to keep pace with the fast changing
economic conditions.
He also rejected opposition's accusations that the government was
by-passing the Senate. He said the present government had not
included these things in the Bill for the first time. In previous
budgets, he recalled, all such things were dealt as part of the
Money Bill.
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990625
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Balochistan PA okays Rs22,672m budget
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Correspondent
QUETTA, June 24: Balochistan assembly on Thursday accorded approval
to Rs 22,672 million budget for the fy 1999-2000.
Speaker Mir Abdul Jabbar presided over the session. Balochistan
finance minister Syed Ehsan Shah presented one by one, fortythree
demands for grants. These demands included thirtyeight for current
expenditure and five for development expenditure during fy 99-2000.
The opposition moved ten out of total eleven cut motions, the house
rejected these cut motions and voted for demands for grants 99-
2000.
Demands for current expenditure pertained to general
administration, provincial excise, stamps, charges on account of
motor vehicles act, taxes and duties, pension, administration of
justice, police, jails & convicts settlement and civil defence,
other demands related to narcotic control, civil works, wasa,
community centres, education, archives, health, population
planning, manpower and labour management, exports & recreation
facilities, social security & social welfare, natural calamities
and disaster relief, auqaf, agriculture, land revenue, animal
husbandry, forestry, fisheries cooperation, irrigation, rural
development, industries, stationery printing, mineral resources,
subsidies, loans and advances as well as state trading.
Eleven cut motions were tabled mostly by former chief minister
Sardar Akhtar Mengal (PNP) and Abdur Rahim Mandokhel (PMAP). These
cut motions were against expenditure on general administration,
police & levies, civil works, public health services, education,
health and state trading.
Remaining two other cut motions rejected by the house pertained to
development community services and development social services, one
cut motion on development economic services could not be moved by
the position.
Besides 38 demands for current expenditure 5 other demands for
development concerned general administration, community services
social services economic services and law & order were also voted.
The house later adjourned till tomorrow (Friday).
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990624
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No new taxes: Ghous presents Rs58.16 billion Sindh budget
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Sabihuddin Ghausi
KARACHI, June 23: The prime minister's adviser on Sindh, Syed Ghous
Ali Shah, presented on Wednesday a tax-free budget with a total
outlay of Rs58.16 billion for the year 1999-2000. It shows an
operational deficit of over Rs4 billion on the revenue expenditure
side and a gap of Rs1.2 billion on the development side.
The budget shows total revenue expenditure during 1999-2000 at
Rs50.25 billion and a total development outlay of Rs7.91 billion.
The current capital expenditure at Rs4.65 billion against Rs3.40
billion capital receipts indicating a gap of Rs1.25 billion has not
been included in the total budget outlay.
The adviser estimated total revenue expenditure at Rs50.2 billion
next year as against receipts of Rs46.17 billion showing a gap of
Rs4.07 billion in the revenue budget.
With this huge gap on the revenue side, Syed Ghous Ali Shah
committed a provincial contribution of Rs1.2 billion to finance the
Rs4 billion annual development programme for the next fiscal year.
For this ADP, the federal government has committed Rs2.76 billion
loan while Rs22.50 billion is the expected Japanese grant. What the
adviser failed to explain in his speech was as to from where Rs1.2
billion would be made available when the budget shows a gap of over
Rs4 billion on the revenue side and Rs1.25 billion on the current
capital side.
Making this presentation before a large number of hostile
journalists, who were literally summoned on a short notice of
hardly a few hours to hear the budget speech in the Committee Room
of the New Sindh Secretariat Building, the prime minister's adviser
estimated receipt of Rs35.2 billion as Sindh's share in the federal
divisible pool and generation of Rs10.98 billion through provincial
taxation and non taxation revenue sources.
Present in the press conference were the federal state minister for
power and water Captain Haleem Siddiqui, an adviser to the former
governor, Dost Mohammad Faizi, and all top bureaucrats of the
province.
Total development outlay in Sindh for the next fiscal year is
Rs7.91 billion. This include the annual development programme of
Rs4 billion, Rs3.4 billion foreign aided projects and Rs500 million
Tameer-i-Sindh programme.
The projected revenue expenditure of Rs50.2 billion for next fiscal
year, Syed Ghous Ali Shah announced showed a rise of 16 per cent
over the revised expenditure budget of Rs43.38 billion in the
outgoing fiscal year of 1998-99. He attributed this rise mainly to
the additional liability of Rs3.4 billion because of the 25 and 20
per cent raise given to the government employees.
"A part of this cost has been provided for in the budget estimates
of 1999-2000" he said and announced "we will further request the
federal government to pick up the remaining requirement."
His budget speech was silent on the amount of funds to be given as
compensation to the local bodies in Sindh by the federal government
following the abolition of octroi and export tax. He only announced
that the provincial government had informed the federal government
that the amounts to be transferred to local bodies must be done in
such a way that there was no delays or bottlenecks.
The chief secretary informed the newsmen that local bodies
collected Rs8.6 billion as octroi and export tax in the current
fiscal year.
At the very outset of his budget speech the prime minister's
adviser spoke of the "acute financial crunch" being faced by Sindh
because of the shortfall in receipts from the federal government
which, he said, continued in 1998-99.
He, however, did not quantify the shortfall in receipt of Sindh's
share of the promised funds from the federal government but dropped
a hint when he claimed that government's stringent financial
management had led to restricting the current revenue expenditure
in 1998-99 to 34 billion which is a "whooping Rs13 billion less"
against the budget estimate of Rs 47.4 billion. "A part of this has
been attained at the cost of accumulation of some liabilities," he
said without giving any details.
Nonetheless, in face of this acute financial crunch, he said, the
Sindh government had brought down its frozen debt with the State
Bank from Rs8 billion to Rs6.9 billion till May 1999. It was
because of regular monthly debt servicing plus the principal
payment. He, however, did not give the present overdraft of Sindh
with the State Bank which fluctuated between Rs1.5 to Rs1.7 billion
every month and had led to bouncing of provincial government
cheques in April.
He said the federal government had released Rs477 million in the
current fiscal year to meet the provincial government's expenditure
on maintenance of law and order. for this, he said, the Sindh
government spent Rs3.4 billion during May 1992 to December 1998. Of
this the federal government had provided Rs906 million and
additional amount of Rs477 million were given in 1998-99. The
federal government had committed to meet 50 per cent expenditure on
law and order maintenance in Sindh.
Besides this, he said, the federal government also provided Rs219
million matching grant to Sindh.
On the agriculture income tax he said the government was
considering amendment in the present law and in mode of the
collection. He said the government could collect only Rs200 million
as against a target of Rs600 million. "We would be reviewing the
performance under the agriculture income tax collection," he
declared. He announced next year's target of Rs845 million. "It is
by no means ambitious but by no means unachievable," he declared.
He said government's intention of raising the provincial revenues
to Rs10.98 billion as against the actual collection of Rs8.6
billion for the current year. The National Finance Commission
projected provincial revenue for next year at Rs9.9 billion. As
against this projection, he said, the Sindh government was going
ahead with an ambitious collection target.
Syed Ghous Ali Shah also made a reference to the lingering on
tussle between Sindh and Wapda and said that it had finally come
before an arbitration where he hoped a fair decision.
Speaking of the disaster caused by recent cyclone in Sindh, he said
Sindh expected to receive Rs800 million relief assistance from the
federal and other provincial governments. A sum of Rs25 million was
given from the provincial resources.
Spread over 8 printed pages, the adviser's speech was too brief and
some of the figures he mentioned did not match the figures given in
the budget documents.
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990624
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No IMF pressure to increase power tariff: Wapda chief
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Correspondent
GUJRANWALA, June 23: Wapda chairman Lt-Gen Zulfikar Ali Khan on
Wednesday dismissed reports that Wapda was under IMF pressure to
increase power tariff.
Addressing members of the Gujranwala Chamber of Commerce and
Industry here, the Wapda chairman said IPPs were responsible for
high tariff. "Of Rs 98 billion revenue, Rs 53 billion are being
spent on purchasing power from the IPPs," he said.
The power purchased from the IPPs, he said, was 24 per cent of the
total electricity required by the Wapda.
About the process of accountability in the authority, he said 541
officers and 250 lower staffers had been removed on charges of
corruption.
He assured businessmen that their problems about new electricity
connections would be resolved.
Earlier, the chairman was warmly received by GCCI members led by
their president, Haji Muhammad Aslam. Gujranwala Electric Power
Company (GEPCO) chief executive Brig Mukhtar Ahmad Tariq and other
senior Wapda officials also accompanied him.
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990621
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G8 calls on Pakistan, India to hold talks
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Shadaba Islam
COLOGNE, June 20: Leaders of the Group of Eight industrial nations
on Sunday called on Pakistan and India to end hostilities
immediately and resume talks.
In a statement, the G8 leaders, including US President Bill Clinton
and Russian leader Boris Yeltsin, voiced "deep concern" over the
continuing military confrontation in Kashmir, repeating their
earlier charge that the fighting was the result of "the
infiltration of armed intruders which violated the Line of
Control."
"We are deeply concerned about the continuing military
confrontation is Kashmir following the infiltration of armed
intruders which violated the Line of Control in the disputed border
region," the communique said.
It further said, "We regard any military action to change the
status quo as irresponsible. We therefore call for the immediate
end of these actions, restoration of the Line of Control and for
the parties to work for an immediate cessation of fighting."
However, diplomats acknowledged that Islamabad was likely to be
disappointed at the G8 stance.
"India is clearly winning the propaganda and public relations war,"
a G8 diplomat told Dawn.
Western nations have largely accepted India's allegations that
Pakistan is funding armed intruders and even sending regular
Pakistani troops into Kashmir.
There is little sympathy for Islamabad's arguments that the
infiltrators are freedom fighters and that Pakistan has no control
over their activities, diplomats say.
There is growing concern that the two countries, which became
nuclear powers last year, could be heading for a full-fledged
conflict.
But there was no support at the Cologne summit for Pakistan's calls
for high-level mediation in the conflict, with Russia and most
governments adamant that the problem must be solved in bilateral
talks between the two sides.
G8 members include Britain, Canada, France, Germany, Italy, Japan,
Russia and the United States.
For most of the three-day summit, G8 leaders focused on plans for
rebuilding Kosovo and repairing damage in relations with Moscow
caused by differences over Nato's bombing of Serbia.
Agreement on the status of Russian troops in Kosovo helped Russia
and its G8 partners to set their relationship on a new course, the
leaders said.
"This summit was a bridge of understanding between Russia and the
West," British Prime Minister Tony Blair said.
"You cannot create and guarantee peace in Europe without Russia,"
German Chancellor Gerhard Schroeder who hosted the Cologne meeting,
said.
Leaders have agreed to organize urgent financing for the
reconstruction of Kosovo but said there will be no money for Serbia
as long as President Slobodan Milosevic remains in charge.
"Thousands of people have been butchered with unbelievable
brutality and unforgiveable barbarism," Blair said. "We cannot give
money to such a regime."
Russia was promised debt relief once an agreement with the
International Monetary Fund is in place.
The summit earlier approved a landmark $71 billion debt relief
package for the world's poorest countries. Leaders did not tackle
the thorny issue of a new director general of the World Trade
Organization but reaffirmed their commitment to an "open trade and
investment environment."
The summit also called for just and lasting peace in the Middle
East and stressed that Palestinians must be permitted to "live as a
free people on their own land."
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990620
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Supreme Court orders on FCAs: State Bank looking into legalities
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Mohiuddin Aazim
KARACHI, June 19: The State Bank has started eliciting legal
opinion to interpret the Supreme Court orders in case of frozen
foreign currency accounts (FCAs) before issuing instructions to the
banks on how to implement them.
Sources close to SBP said SBP high-ups had got in touch with senior
lawyers to be able to interpret the orders in their true spirit.
"There are certain things to be clarified before the SBP gets down
to implementing the orders," one of the sources told Dawn. He said
it was not clear whether SBP would approach the Supreme Court for
such clarifications or rely on its legal consultants.
He said it was also not known whether SBP would wait for the full
orders of the court before implementation of its directives or
implement the short order first.
The short order passed on Friday says FCA holders are entitled to
receive interest or profit in foreign exchange on their deposits at
the rates already agreed as per original arrangements between them
and the respective banks.
It also says that the non- resident Pakistanis and foreigners
maintaining FCAs as on May 28 1998 would be entitled to utilize
such interest or profit between them and the banks concerned in any
manner including its outward remittance. But the order does not say
whether this relief would be provided to FCA holders from now
onwards or with retrospective effect since May 28 1998 when FCAs
worth $11 billion were frozen.
"That is something which needs to be clarified," said a source
close to SBP. Bankers say if the said instruction is to be made
effective from now onwards it would not be much of a problem but if
it takes retrospective effect from May 28 1998 that would need a
lot of homework by SBP and banks.
"It would be very difficult for the SBP to make the required
foreign exchange available in case FCA holders get interest or
profit in foreign exchange from May 1998," said treasurer of a
foreign bank. "This would also create surplus rupee liquidity in a
fairly liquid inter-bank market with all of its consequences."
Bankers close to SBP say the Supreme Court ruling that FCA holders
should not be compelled to convert their foreign exchange holding
into rupees at the officially-notified exchange rate also needs to
be interpreted cautiously.
They say it is not clear whether the exchange rate applicable on
conversion of FCAs after the rupee float on May 19 1999 should be
regarded as officially-notified exchange rate in the context of the
Supreme Court order. From May 28 1998 when the FCAs were frozen
after nuclear blasts to May 19 1999 a fixed exchange rate of Rs 46
to a US dollar remained in operation for conversion of FCAs. But
after the rupee float the SBP has been allowing FCA conversion at a
flexible exchange rate based on average buying rate of the banks on
previous working day. The SBP flashes this rate on Reuters every
morning besides getting them published in newspapers to ensure that
the FCA holders get the right exchange rate.
Senior bankers familiar with the discussions going on in the
ministry of finance say the ministry also is trying to interpret
that part of the Supreme Court order which relates to making a
reasonable provision in every budget to facilitate gradual removal
of restrictions on FCAs.
They say the ministry is trying to make out what specifically the
government should do in the budget to ensure gradual lifting of
restrictions on foreign currency accounts. They say what the
ministry is trying to make out is whether the Supreme Court wants
the government to set aside a foreign currency fund to make sure
that its foreign exchange liabilities in the shape of FCAs are met
or something else. Since the budget provisions are normally made in
rupees and not in foreign currency it needs elaboration.
The bankers say it is yet to be seen whether the ministry of
finance consults the ministry of law to interpret this part of the
Supreme Court order or wait for the full orders of the court or
seek its guidance meanwhile.
Bankers say after the pronouncement of the Supreme Court short
order on Friday they have received very few number of inquiries
related to FCA business. "But we know lots of inquiries would be
pouring in next week," said treasury manager of a state-run bank.
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990625
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Pakistan's second satellite ready for launch
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Reporter
KARACHI, June 24: About eight years after the launch of its first
satellite the country is ready for the launch of the second, it was
learnt on Wednesday. The satellite is presently in Kazakhstan from
where it would be launched into space by the end of the year.
The satellite, called Badar-B, had successfully passed all the pre-
launch tests, said the Chairman of the Pakistan Space and Upper
Atmosphere Research Commission (SUPARCO). Dr Abdul Majid said as
per convention the satellite would be known as Badar-2 after its
launch.
The experimental satellite was originally scheduled to be launched
on Aug 26, he told Dawn. "But the launch has been delayed because
of problems in the launching part of the endeavour," he said.
He said the Russian satellite along with which Badar-B and three
other satellites would be launched was itself not ready for
launching. "The Russians have themselves failed to achieve the
deadline," he said. "As a result, the whole project is suffering."
Elaborating, the chairman of SUPARCO said the launching was
supposed to be done from the Baikonour Cosmodrome, Kazakhstan, in
late August. The launching would be on Zenit-2 rocket, he said.
Dr Majid said the main satellite to be launched was the Russian
one. "The other four satellites one each from Pakistan, Malaysia,
Morocco and the US are to be mounted on the bigger Russian
satellite. All the five satellites in other words are to be
launched simultaneously."
He said it was only the Pakistani satellite which had met the
deadline set by the Russians. "The deadline was in April. All the
other satellites failed to meet the deadline," he said.
Dr Abdul Majid, who did his PhD from the University of Wales, said
there were four objectives of the project. Firstly, Badar-2 had a
CCD camera through which the earth's imaging could be done, he
said.
"Secondly, there are equipment in the satellite with the help of
which signals sent to it, that is, e-mail etc, could be stored.
These signals might be forwarded later for onward delivery," he
said.
The satellite would also be able to measure the radiation through a
dosimeter, he said. "The last objective was to carry out the
battery-end-of-charge-detection."
The development of the satellite, said Dr Majid, would create the
necessary infrastructure for the systems which could be launched in
space. "The successful launching of the satellite would also
demonstrate our ability to guide and control satellites from the
ground," he said.
The successful operation of the CCD camera on board the Badar-2
satellite would be a first step towards the acquisition of know-how
for taking pictures of earth from specialized digital cameras, he
added.
The chairman of SUPARCO said the cost of making Badar-2 was
considerably more than the first satellite's. "There are two
reasons for this. Firstly Badar-2 is far more complex and
sophisticated than Badar-1.
"Secondly, since we want the new satellite to have a life of more
than two years, we have used "space qualified components" only,
which are very costly. "Mind you the first satellite had a far more
shorter life."
Dr Majid said the satellite was made of an aluminium alloy and had
a total mass of 68.5kg. It would be launched in a circular orbit of
1050km with an orbital period of 106 minutes. A typical pass over
Pakistan would last between 10 to 15 minutes, he added.
===================================================================
BUSINESS & ECONOMY
990625
-------------------------------------------------------------------
CBR computerizing tax refund system
-------------------------------------------------------------------
Correspondent
FAISALABAD, June 24: Central Board of Revenue is computerising the
sales tax refund system all over the country to eliminate delays
and hurdles in early disposal of exporters claims.
This was disclosed by Mumtaz Haider Rizvi chief of sales tax, CBR
addressing the members of All Pakistan Cloth Exporters Association
(APCEA) here.
Elaborating, Mr Rizvi said that the government was determined to
facilitate the exporters to promote the country's exports and to
achieve the objective unnecessary procedural bottlenecks and
irritants would be removed. The government was prepared even for
out of way accommodation to exporters by accepting their genuine
and reasonable demands, he stated.
He acceded to exporters demand of allowing variation of yarn counts
mentioned in shipping bills and invoices since the department was
allowing sales tax refund on value and not weight. Necessary
official instructions in the regard would be issued very soon he
said.
Responding to another demand, the sales tax chief said that he
would direct the sales tax officials not to refuse refund claims
for this reason. He agreed that it was no concern of sales tax
department whether the blend of yarn was same or not as per invoice
or shipping bill as this factor did not in any way influence the
refund mechanism.
Straightening out yet another irritant disconcerting exporters
regarding delays in verification of purchase invoices for spinning
mills Mr Rizvi said it was no fault of exporter if the verification
was over delayed. The exporter was unnecessarily made to suffer he
agreed and directed the sales tax officials to issue refund to the
exporters notwithstanding any delay in verification of purchase
invoices.
Earlier welcoming the sales tax chief, Mukhtar Ahmad Sheikh
chairman APCEA apprised him of the difficulties being faced by the
exporters in getting refunds of their sales tax claims.
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990625
-------------------------------------------------------------------
SBP asks banks to implement court orders
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, June 24: The State Bank on Thursday asked all banks and
other financial institutions to implement the Supreme Court orders
which required them to pay interest in foreign currency on frozen
foreign currency accounts (FCAs).
"Interest/profit is required to be paid to foreign currency account
holders at rates already agreed as per original arrangements
between them and the respective banks," SBP said in a circular
(F.E. no 16) issued to all commercial and investment banks and non-
bank financial institutions.
"Our interpretation is that such interest/profits are required to
be paid in those cases where the foreign currency accounts continue
to exist and that the amounts of interest/profits are to be
credited in foreign exchange to the accounts of the respective
account holders," the circular explained.
The SBP also circulated among all banks and non-bank financial
institutions the copies of the June 18 short order of the Supreme
Court on frozen foreign currency accounts.
The short order held that the foreign currency account holders were
entitled to receive interest/profit in foreign exchange on their
deposits at the rates already agreed upon as per original
arrangements between them and the respective banks.
It also held that the non-resident Pakistanis and foreigners
maintaining foreign currency accounts as on May 28 1998 would be
entitled to utilize such interest/profit between them and the banks
concerned in any manner including remittances abroad.
The SBP circular said as and when a non-resident Pakistani or a
foreigner would like to remit the interest or profit on his FCA
abroad he would file an application with SBP foreign exchange
department.
It said the application should be filed on form "M" along with a
covering letter containing "the name, nationality and residential
status of the account holder, the balance in the account on the
date of application as well as on 25-5-1998 and the period during
which such interest/profits were earned."
Senior bankers reached by Dawn said the SBP interpretation of the
Supreme Court order was such that it would not provide any relief
to foreign currency account holders.
"The SBP interpretation means that the people who have already
converted their frozen foreign currency accounts into rupees would
not get any interest in foreign currency on their accounts with
retrospective effect," said treasurer of a state-run bank.
Out of around $11 billion worth of foreign currency deposits frozen
on May 28 1998 $5.07 billion has so far been converted into rupees
and $1.27 billion into US dollar bonds. Between May 28 1998 and May
18 1999 people converted these deposits at a fixed exchange rate of
Rs 46 to a dollar. But after the rupee float on May 19 1999 they
began to receive a floating exchange ratewhich currently hovers
around Rs 51.50 per US dollar.
"More importantly people still maintaining the frozen foreign
currency accounts would not get interest at the rate prevailing at
the time of freezing of these accounts," said treasurer of a
foreign bank.
The SBP circular does not interpret the court order to clarify this
point. It simply reproduces the wordings of the court order that
the interest or profit in foreign currency is required to be paid
to the foreign currency account holders at the rates already agreed
as per original arrangements between them and their banks.
"With this ambiguity being there the banks would interpret the
court order to their advantage," said treasury head of a European
bank.
"Banks might say the term "original arrangement" referred to the
acceptance by the holders of foreign currency accounts the right of
the banks to make changes in the interest rates after every six
months or even every month," he said. "In this way the banks
would easily justify however low rates of interest they are paying
on frozen foreign currency accounts."
Before May 28 1998 banks were paying around 3.5-6.0 per cent
interest on foreign currency accounts but after the freezing of
these accounts the State Bank rapidly raised forward cover fee
forcing the banks to cut the rates.
"In the end people still maintaining foreign currency accounts will
suffer," said senior executive of a partly-privatized bank. "They
will soon realize that it would be wiser to convert their deposits
into rupees or dollar bonds than to continue to maintain the same
for eternity."
Bankers say as the possibility for the foreign currency account
holders to get better interest rate on their deposits has now been
eliminated the pace of conversion of FCAs which slowed after the
Supreme Court short order would again accelerate.
They say the SBP decision to allow outward remittances from frozen
foreign currency deposits of non-resident Pakistanis and foreigners
only after strict scrutiny would minimize the pace of outflow of
foreign exchange from the country. "With the country facing acute
shortage of foreign exchange it seems quite logical on the part of
the SBP guys not to allow easy outflows," said a local banker.
Pakistan faces a projected trade deficit of $800 million and
current account deficit of $1.7 billion in fiscal 1999-2000 with
its liquid forex reserves hovering around $1.7 billion only.
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990625
-------------------------------------------------------------------
Germany wants to expand trade ties
-------------------------------------------------------------------
Correspondent
GUJRANWALA, June 24: Mr Peter Monior, German Commercial Counsellor,
said here that Germany wants to establish strong trade relations
with Pakistan.
Addressing the Gujranwala Chamber of Commerce and Industry, he said
that German investment in Pakistan was over 160 million Mark while
Pakistani investment was only 0,5 million Mark.
He asked the Pakistani business community to invest maximum in
Germany so that mutual relationship could be strengthened further.
Pakistan-German Business Council proposed that manufacturers,
traders and business community of Pakistan should get the
membership of the business council for promoting trade relation
between two countries as Germany is the second big trading country
of the world after the United States.
Mr Jameel A. Naz, Chairman of Pakistan-Germany business council,
and Pakistan-German Council director Mr Herbert T. Clot said that
the Pakistani business community should participate in the German
trade fair in large numbers so that spade workd could be done to
promote trade relations between the two countries.
Earlier GCCI president Haji Muhammad Aslam , welcomed the German
Commercial Counsellor and assured to study promptly proposals about
promoting strong trade relations between Pakistan and Germany.
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990624
-------------------------------------------------------------------
Dar discusses revival of sick units
-------------------------------------------------------------------
Correspondent
Islamabad, June 23: Finance Minister Mohammad Ishaq Dar expressed
concern at the delay in processing the cases of sick industrial
units and directed the Banks/DFIs to finalize all such cases in 45
days.
The minister, who chaired a meeting here this afternoon to discuss
measures for expeditious revival and restructuring of sick
industrial units in the country.
It was decided meeting that section 296 of the companies ordinance
dealing with measures for revival of sick industrial units be
enforced which has been inoperative so far. In pursuance of section
296, the government would notify a high powered committee
comprising of heads of Banks/DFIs to prepare packages for
rehabilitation of sick industrial units. The committee would be
headed by Mr. Tariq Hameed and include Mr. Shaukat Mirza and
Mr.Humayun Elahi Sheikh.
The committee would consider only such cases which would be
referred to it by the existing committee of bankers. The securities
and exchange commission of Pakistan would notify the rules for the
purpose of carrying out the objectives of section 296. The
Secretariat of the committee so constituted under section 296 would
be located in HBL, Karachi.
The meeting was attended by Secretary Finance, Special Secretary
Finance, Chairman EPB, CBR and SECP besides of Chief Executives of
NBP, UBL, ABL, HBL, NDFC, PICIS and representative of MCB.
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990623
-------------------------------------------------------------------
Fresh checks on inter-bank forex deals
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, June 22: In what is being seen as a big surprise the State
Bank has stopped the banks from buying or selling foreign
currencies between themselves if the buy or sale is not backed by
commercial deals with their customers.
The State Bank on Tuesday issued a circular (F.E. no 15) which
refrained all the banks from buying or selling foreign currencies
unless the purchase or sale is backed by commercial transaction.
It also stopped the banks from making forward buying or selling of
foreign currencies for less than one month.
The circular said even the one-month forward transactions with the
customers would be for fixed maturity meaning thereby that the
banks would not be able to close-out the deal earlier or extend it
beyond one month.
These restrictions have been imposed through amendments in the SBP
instructions on foreign exchange transactions conveyed to the banks
through another circular (F.E. no 8) issued on May 18, 1999.
"We are surprised...we had never expected such a thing," said a
local banker. Some other bankers reached by Dawn said the same
thing.
The circular says: "In case payment is made/received within one
month spot selling/buying rate will be applied and the relevant
contract will be closed out at the maturity date."
It further says that banks may freely buy foreign currencies from
and sell them to other banks in Pakistan "provided such purchases
or sales are backed by permissible transactions with their
customers." Previously the banks could do it on their own.
The SBP circular came minutes after a brain-storming session
between senior bankers and SBP officials wherein bankers urged the
SBP officials to stop imposing an artificial exchange rate band.
Sources privy to the meeting said treasury managers of both local
as well as foreign banks told the SBP officials that the practice
would lead to severe distortions not only in exchange rate regime
but in overall economy.
Bankers say immediately after the rupee-float on May 19 SBP
officials started dictating an exchange rate band to be observed by
the banks each day instead of allowing the market forces to
determine the rates. SBP has so far remained silent on the issue.
The fresh SBP circular on foreign exchange has drawn a mixed
reaction from amongst the bankers. "The restrictions imposed on
forward deals would lead to faster inflow of foreign exchange
besides checking speculation in inter -bank market," said a local
banker.
"The restrictions would make importers more panicky...and the
exporters would withhold selling foreign exchange," commented a
foreign banker.
Nevertheless both the bankers were of the view that the fresh
restrictions on foreign exchange transactions showed an abrupt
shift in foreign exchange policy.
Other local and foreign bankers reached by Dawn said with the
restrictions imposed on inter-bank foreign exchange transactions
not only the forward buying or selling would be limited but spot
transactions would also stop. "That would mean a simple reversal of
the freedom of operation that the State Bank guaranteed while
floating the rupee on May 19," said treasurer of a foreign bank.
"The State Bank has put these restrictions after it came to the
fore that leading exporters in collusion with banks were not
selling their export proceeds on time," said treasurer of a major
local bank. "That is something the SBP can afford to neglect at a
time when the demand for foreign exchange is enormous and supply is
scarce."
Bankers say the Supreme Court judgment requiring the banks to pay
profit on frozen foreign currency accounts in foreign currencies
would further raise the demand for the foreign exchange. That also
explains why the State Bank appears to be so desperate in
containing the demand for the dollar that it has put fresh
restrictions on foreign exchange transactions barely a month after
floating the rupee on May 19, 1999.
The SBP has imposed fresh restrictions through amendments in a
section of SBP circular (F.E. no 8) issued on the occasion of
rupee-float on May 19. The relevant section of the said circular
had clearly stated that the banks "may provide forward cover for
exports or imports and other permitted transactions for any
duration in accordance with the conditions prevailing in the
market." It had stated that each bank was free to determine the
conditions for deliveries and close-out.
The circular (F.E. no 8) had also allowed the banks to enter into
inter-bank transactions freely.
Some bankers close to the SBP said the fresh restrictions were
imposed to curb speculation in the inter-bank market before the
unofficial cap on maximum exchange rate was lifted. They said for
the past few weeks the US dollar had remained capped at Rs 51.90-
51.95 in inter-bank market due to an unofficial band dictated by
the SBP. "But now the cap is going to be lifted...hence the
restrictions to check an unusual rise of the dollar," said a
foreign banker.
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990623
-------------------------------------------------------------------
WorldTel to invest $500m in TeleCard
-------------------------------------------------------------------
Reporter
KARACHI, June 22: The WorldTel, acting as a strategic investor,
will invest Rs500 million as equity in TeleCard Ltd to finance its
wireless payphone expansion programme, an announcement said on
Tuesday.
"The massive wireless payphone expansion now contemplated will
require an immediate injection of fresh equity," announcement said.
The company plans to issue further capital to the strategic foreign
investor without a right issue to the existing shareholders of the
company.
"In terms of the preliminary agreement, WorldTel or its affiliates
propose to invest as equity in TeleCard Ltd an amount of Rs500
million," it said.
The equity will be injected by ensuring that price to be paid on
the new shares is not below Rs20 per share that is a minimum of 100
per cent premium.
The TeleCard is planning to expand the roll-out of wireless
payphones cards to 125000 to mostly targeting to rural consumers.
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990622
-------------------------------------------------------------------
90% CED target achieved in 11 months
-------------------------------------------------------------------
Intikhab Amir
PESHAWAR, June 21: The Customs and Central Excise Collectorate,
Peshawar achieved over 90 per cent of its annual recoveries target
set for Central Excise Duty (CED) in the first eleventh months of
1998-99, official sources said here on Monday.
Against the initial CED target of Rs 9563 million, total
collections stood at Rs 8938.24 million at the end of May, the
eleventh month of the 1998-99 financial year.
Main CED sources appeared to be cigarette and cement industries
which jointly yielded Rs 7962.09 million till May 1999, said the
sources.
The other three major sectors of CED contributed a total of 726.24
million and included a sum of Rs 534.4 million collected on
beverages concentrate, Rs 39.50 m collected from the sugar industry
and Rs 152.34 m raised from the beverages (aerated & non aerated).
Apart from these five major sources of CED collections in the NWFP,
the Central Excise authorities raised a sum of Rs 250.78 m from all
other miscellaneous sectors.
The customs and central excise collectorate's officials attached
extra significance to the CED recoveries describing it an
improvement by 9 per cent over and above the Rs 819641 m total CED
collections made in the 1997-98 financial year.
They said the collectorate recorded recoveries more than the
previous financial year in spite of reduction made in the rate of
duty on cement industry which was brought down to Rs 1400 per
metric ton in the 1998-99 financial year against Rs 1850 per metric
ton in the 1997-98 financial year.
In comparison with the recovery position recorded in the
corresponding period of the last financial year, the Peshawar
collectorate of Customs and Central Excise, said the sources, this
time round recovered Rs 741.83 m more than the Rs 7178.79 m
recoveries made in the July-May period of the 1997-98 financial
year.
Higher CED collections, this time round, have been attributed to
the raise in duty on cigarette manufacturers during the 1998-99
financial year. The sector raised 4212.31 m in the first eleven
months of the current financial year against the total collections
of Rs 3178.72 m recorded in the last financial year.
"Apart from raise in the rate of CED on cigarette industries, the
collectorate also plugged the leakages and non-payment of full
amount by the cigarette manufacturers," said the official sources.
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990622
-------------------------------------------------------------------
Many duties withdrawn, taxes lowered
-------------------------------------------------------------------
Bureau Report
ISLAMABAD, June 21: The government on Monday announced changes and
adjustments in sales tax, customs duty and central excise duty on a
number of items, including cigarettes, bricks and cement blocks,
CNG kits, plastic products, credit cards, bulldozers, angle dozers,
penicillin derivatives and on advertisements proposed in the
federal budget.
Winding up the budget speech in the National Assembly, Minister for
Finance and Economic Affairs Ishaq Dar, however, announced further
increase in the import duty of palm oil and soybean oil by Rs1000
and Rs250 per ton respectively.
"But there would be no increase in the retail price of edible oil
which will continue to be sold at Rs52 per kg," he emphasized.
Also a 10 per cent customs duty which was imposed on the import of
video cameras has also been extended on the import of still
cameras.
Mr Dar assured the NA that there would not be any mini budget
throughout the next financial year and that no decision would be
taken without the approval of the legislators.
Giving details, he said the government had decided to withdraw 12.5
per cent central excise duty on advertisements, and instead 2.5 per
cent CED had been levied on commercial importers of newsprint and
print media.
The finance minister announced zero duty on the import of
bulldozers and angle dozers with a view to developing the less
developed areas of the country.
He also said that Customs Act 1969 had been amended to allow
exporters to obtain raw materials from the warehouses without
seeking permission from the customs department.
He said 10 per cent regulatory duty on the import of penicillin
derivatives was being removed and there was a proposal to again
levy 35 per cent customs duty on it in order to protect the local
industry.
Mr Dar also announced the removal of sales tax on cement blocks.
However, he said no sales tax exemption would be offered on
concrete. Similarly, he said that since there was no sales tax on
the import of CNG kits, a decision had been taken to remove tax on
local supplies to protect the home industry.
The plastic industry had been taken out of the central excise levy
and their sales would now be leviable without a benefit of tax
adjustment. This would benefit the industry and help it flourish,
he said.
The finance minister also announced reduction in excise duty on
credit card from 2 per cent to 1.5 per cent to be applicable on
transactions both in and outside the country.
The rate of withholding tax on edible oil as proposed in the budget
had been changed and now the importers-cum manufacturers would have
to pay 2.5 per cent WT and commercial importers would have to pay 4
per cent WT rather than the single rate of 2.5 per cent.
Mr Dar said the exemption of withholding tax on Terms Finance
Certificate (TFCs) and institutional investors had been announced
for developing the debt market. "And now these exemptions will be
available on those TFCs which will be issued after Ist July 1999."
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990622
-------------------------------------------------------------------
Expansion of ST dept approved
-------------------------------------------------------------------
Correspondent
ISLAMABAD, June 21: The Government has allowed the Central Board of
Revenue (CBR) to launch a Rs 70 million expansion programme of the
sales tax department for ensuring 100% coverage of the corporates,
services sector assessees and for extension of the department to
FATA and Northern Areas.
The authorisation has come by exempting the sales tax department on
one-time basis from the prime minister's directive issued
for curtailing development funds of federal organisations.
The CBR had last week sought special exemption with the plea that
the sales tax department could not meet the demands for extension
of ST to the FATA and Northern Areas, and the programme
for expanding the assessment and anti-evasion coverage under the
'99-2000 budget could not be realised without funding.
Three expansion schemes have been planned for the ST department in
the next financial year which include computerisation, employment
of technical officials and agencies, and creation of physical
infrastructure in new areas.
The computerisation and the linkage with the Income Tax department
involves purchase of hard and software systems, while the
employment of officials and technical services involves training
and salaries payments. A sizeable physical infrastructure creation
is planned which would mean setting up of new offices,
requisitioning the space for the ST officials taking over duties in
various towns for ensuring better coverage and anti-evasion
activities, and furnishing of these spaces and offices.
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990626
-------------------------------------------------------------------
KSE 100-share index declines by 12.66 points
-------------------------------------------------------------------
Reporter
KARACHI, June 25: Stocks on Friday failed to extend the overnight
snap rally as conflicting news about the outcome of US Gen Anthony
Zinni's visit did not allow investors to take long positions on any
of the counters. The KSE 100-share index fell 12.66 points at
1,044.04.
But larger fall was averted as section of leading hoped that
something positive could emerge from the visit of the US general
but at a later stage most of them covered positions at the falling
prices in the pivotals, notably PTCL and Hub-Power.
Conflicting rumours about the outcome of talks between the prime
minister and the visiting US general kept pouring in throughout the
session but their tilt was generally in favour of bears who
exploited the situation with a great precision.
Those who were expecting an instant positive response from Pakistan
and have made extensive buyings at the lower levels were a bit
disappointed and left the market with the same speed as they had
entered.
Although, there is no final official word on the outcome of Gen
Zinni's two-day visit and his talks with the prime minister, aid
analysts adding "only some positive development on the Kashmir
front could set the trend for the market to follow during the next
week".
"It is too early to expect something positive on the border
situation in Kashmir as rigid positions taken by the contenders
need a bit softening", said a member of the KSE.
He said the proceedings on the floor for the last about one month
after the Kargil issue engulfed the market reflecting that
investors here are too scare of war and are yearning from a durable
peace between the two neighbours.
The KSE 100-share index finally ended at 1.044.04 points as
compared to 1,056.70 points a day earlier, wiping out Rs3 billion
from the market capitaliszation at Rs285.140 billion as compared to
Rs288.146 billion on Thursday, indicating the weakness of PTCL.
However, the market took a positive turn at the fag-end of the
session followed by heavy covering purchases in Hub-Power
apparently on some positive news.
Dealers said the revival of demand in it was related to news that
WAPDA has made payment of Rs4 billion to it against its overdue
power bills. But some others said the buying is related to peace
moves by the US General.
Minus signs again dominated the list, with most of the leading MNCs
being in the forefront of losers under the lead of Shell Pakistan,
BOC Pakistan and Lever Brothers, which suffered fall ranging from
Rs4.00 to 25.00.
Other prominent losers were led by 9th ICP, IGI Insurance, PSO,
General Tyre, Ghandara, Clariant Pakistan and Philips falling by
Rs1.50 to 2.50 amid active selling.
Gains on the other hand were fractional barring New Jubilee
Insurance and Jahangir Siddiqui and Co, which rose by Rs1.71 and
1.90, respectively.
Trading volume fell to 71 million shares from the previous 97
million shares as losers forced a strong lead over the gainers at
20 to 73, with 41 shares holding on to the last levels.
The most active list was again topped by PTCL off 45 paisa at
Rs19.75 on 28 million shares; followed by Hub-Power up 35 paisa at
Rs13.60 on 16 million shares; PSO off Rs1.50 at Rs91.60 on 11
million shares and Fauji Fertiliser unchanged at Rs40.45 on 4
million shares and Apollo Textiles unchanged on 2.300 million
shares.
Back to the top
===================================================================
EDITORIALS & FEATURES
990620
-------------------------------------------------------------------
Arbiters of justice 2
-------------------------------------------------------------------
Ardeshir Cowasjee
TO give the devil his due, when he wishes to be, he can be honest.
When Mushahid Hussain made Nawaz Sharif read the editorial in The
Economist of May 22 Nawaz Sharif did not order him to refute what
was written, nor did he threaten to sue for defamation. He took all
in his stride, including:
"The judiciary at first tried to check Mr Sharif, but has given up.
When the chief justice of the Supreme Court, Sajjad Ali Shah, took
the president's side in an argument with the prime minister in
1997, a mob from Mr Sharif's party stormed the Supreme Court and Mr
Sharif sacked Mr Shah. The courts have given Mr Sharif little
trouble since .... "
After the Supreme Court had, in December 1997, reluctantly taken
notice of the storming incident, inquired into it, issued a few
contempt of court notices, pardoned many and charged a handful of
nonentities with contempt of court, it delivered its judgment on
May 14, 1999, exonerating those charged. The nation was aggrieved
by this judgment and now one of the aggrieved, Shahid Orakzai, has
filed a petition in the Supreme Court praying that the matter be
examined and tried de novo. The petition was heard by a bench of
five comprising Chief Justice Ajmal Mian, Justices Saiduzzaman
Siddiqui, Irshad Hasan Khan, Raja Afrasyiab Khan, and Bashir
Jehangiri and converted into an appeal. The bench ordered that
notices be issued to the respondents, "the Attorney-General of
Pakistan and the persons against whom the charges were framed," and
that the appeal would be heard on June 28.
The bench will surely do 'complete justice' according to Article
187(1) of the Constitution: "Supreme Court shall have power to
issue such directions, orders or decrees as may be necessary for
doing complete justice in any case or matter pending before it,
including an order for the purpose of securing the attendance of
any person or the discovery or production of any document."
The framers of our contempt laws never contemplated the possibility
that the government of the day would organize a mob to storm the
Supreme Court whilst in session, i.e. commit contempt in the face
of the court (as reflected in Order 27 Rule 7(2) of the Supreme
Court Rules 1980). The Attorney-General of Pakistan and his
deputies are men appointed and employed by the government. They
cannot be expected to wholeheartedly and honestly conduct a
prosecution against their appointers and employers. The
"aggrieved," therefore, urge that in conformity with current
international judicial norms and practices, the Supreme Court
appoint an independent special prosecutor able to prosecute the
case in an unbiased manner (covered in my statement placed on the
court record on May 6, 1999).
Another good reason why the Attorney-General is incompetent to
prosecute this case is covered by excerpts from my affidavit placed
on the court record on April 22, 1998:
"That it is on record that the first law officer of the people,
Attorney-General Chaudhry Farooq, has himself committed contempt in
the face of the Court. During the 1993-96 PPP government of Benazir
Bhutto, Advocate Chaudhry Farooq, defending an Ittefaq case in the
Lahore High Court, swore at the presiding judge, Mr Munir A Shaikh,
in open court, using the crudest of language. For this blatant
contempt committed in the face of the court, the honourable
presiding judge could have convicted and imprisoned him.
"That Advocate Chaudhry Farooq was not prosecuted does not deviate
from or alter the fact that he abused an honourable High Court
judge in open court, thus committing contempt in the face of the
court.
"That with the advent of the PML government of Nawaz Sharif, the
Prime Minister appointed as Attorney-General of Pakistan, as the
people's lawyer, his own lawyer, Ittefaq's lawyer, Advocate
Chaudhry Farooq.
"That the judiciary and the people accepted him, without protest,
as the first law officer of the land rests heavily on the heads of
the people and even more heavily on the heads of those in power and
authority who could have opposed his nomination and subsequent
appointment, and, additionally, this advocate can hardly be
considered to be competent to aid the Supreme Court in the
investigations it is now conducting to establish the identity of
those members of the ruling party who had either organized the
storming, or were leading the mob, or were with the mob on November
28, 1997."
Unless a special prosecutor is appointed, the exercise now in the
mill will be an exercise in futility. The appeal will be admitted
for hearing by CJ P Ajmal Mian who will clear his conscience and
retire two days later, leaving his successor CJ P Siddiqui to carry
on.
The Attorney-General is hardly likely to consider the involvement
of the new CJP in the removal of CJP Sajjad Ali Shah in
November/December 1997, or the contents of Sajjad Ali Shah's letter
dated November 28, 1997, addressed to the President of Pakistan
which has been placed on the Supreme Court record as an attachment
to my affidavit dated May 9 1998 :
"I am very sorry to state that Mr Justice Saiduzzaman Siddiqui, a
judge of this court, who is presiding over a bench of three judges
at Peshawar registry, has issued an administrative order
constituting a full court consisting of 15 judges to commence
sitting on 1/12/97 for hearing of the cases at Islamabad. He has
heard and decided a petition under Article 184(3) of the
Constitution, which cannot be registered and heard at the Peshawar
registry and can be registered and heard only at the principal seat
of the Supreme Court unless so authorized by the Chief Justice.
This petition was taken up for hearing without any authorization
from me and such action was also taken by two judges, namely, Mr
Justice Irshad Hasan Khan and Mr Justice Khalil-ur-Rehman Khan at
Quetta without permission of the Chief Justice, and the order was
passed holding in abeyance the notification of my appointment as
Chief Justice, which order has been set at naught by the bench of
five judges by a majority of four to one sitting at the principal
seat.
"Mr Justice Saiduzzaman Siddiqui, as stated above, has passed an
administrative order taking over the control of the whole
administration which is the exclusive function of the Chief
Justice. This divide amongst the judges of the Supreme Court is
deliberately created by interested quarters. I do not want to make
any comments on the conduct and attitude motivating such actions,
which smack of defiance and rebellion and amount to misconduct
calling for action by the Supreme Judicial Council for which
necessary steps are to be taken."
The AG will also not consider what Senator Iqbal Haider has
recorded in his statement handed in to the Supreme Court on May 21,
1998:
"The attacks on the Supreme Court started on August 21, 1997, when
the strength of the Supreme Court judges was arbitrarily reduced.
The spate of attacks by the ruling party on the Supreme Court
continued thereafter with the intent to disrupt the course of
justice and to prevent the court from hearing most crucial cases
incriminating the prime minister, his parliamentarians and
friends."
In order to survive, the people desperately feel the need for an
independent judiciary, particularly with the government we now
have. Those who try to help the judges regain their dignity and
status are generally regarded as fools and asked the simple
question: "Well, you may want to do something for the judges, but
do the judges want to be independent enough to rule against the
government?"
Take the FCA case. For some reason or other, stress was laid on the
production of a list of those who withdrew or remitted foreign
exchange between May 11 and 28, 1998. That does not matter one
iota, for by law people were free to remit whatever they liked
during this period. What was to be revealed to the Court and to the
people of Pakistan were the names of the powerful people in
government, the culprits, who sent out money in between the time
the embargo was declared on May 28 and the returns submitted to the
State Bank the next morning. The Governor of the State Bank has a
list of these people, but the court did not ask for it.
Another worrying aspect is the appointment of judges. Three eminent
additional judges of the Lahore High Court, Justices Saqib Nisar,
Asif Saieed Khosa and Mian Zafar Yasin, recently completed their
statutory probationary period of one year, and were recommended by
the CJ of the LHC and the CJP as being suitable for confirmation as
permanent judges.
The law ministry processed their cases and the prime minister
advised the president to confirm them. They had to be confirmed "in
the absence of very strong reasons to be recorded by the
President/Executive which may be justiciable". President Tarar
refused to confirm them, stating that the first two are young (both
are over 40 and constitutionally eligible) and that the third's
rate of disposal of cases was poor. Would the CJ of the LHC and the
CJP have recommended confirmation? "Strong reasons"?
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990625
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A fiasco in the making
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Ayaz Amir
WITH each passing day, it should be becoming clearer even to the
benighted that in Kashmir we are allowing ourselves to get caught
in a bind. While the ultimate objective of the venture under way
remains shrouded in a mist of confusion and conflicting statements,
the western powers, whose opinion matters to us because they are
our creditors, are not buying the line that the Pakistan army has
nothing to do with the occupation of the Kargil heights and the
fighting which this has sparked.
However hopeful and desperate a spin the foreign office may try to
put on this situation, it is Pakistan and not India which is under
pressure to restore the status quo ante along the Line of Control.
This is not a failure of diplomacy as many pundits are screaming.
It is a political failure inasmuch as Pakistan's stance, whatever
we may think of it, is hard to sustain before the world's eyes. Nor
do we seem very clear in our minds about what we want, which is
adding to the confusion.
Through the Kargil operation are we trying to acquire bargaining
chips for a trade-off on Siachen? Do we want to pose a permanent
threat to India's lines of communications further to the north? Do
we want to bring India to the negotiating table? Is this the first
step in the liberation of Kashmir? If one or more of these
objectives were behind this operation, did the Pakistan high
command really calculate that if a few bold thrusts (by the
mujahideen or whatever) were made across the Line of Control the
Indian response would remain localized and India would not make too
great a noise about such a move? There is nothing more foolish in
war than to substitute wishfulness for a realistic appreciation of
the situation but we seem to be doing this all the time.
To make matters worse, there is no shortage of drum-beaters in the
national press who are crying that we have the Indians where we
want them and that it is an historic opportunity to press home our
advantage. General Hamid Gul of course is in a class of his own. He
says nothing should deter us, not even the threat of nuclear war,
to take the fight to the enemy. But if this class of super-patriots
were to give some thought to the matter they might see that it is
Pakistan which has painted itself into a corner.
What are our options? The Hamid Guls notwithstanding, we are in no
position to expand the Kargil fighting, our strength being
insufficient for the purpose. Nor would the international community
stand for it, a matter of no small moment for us since our begging
bowl is as strong as our pretensions. All we can hope for is that
India will not raise the ante, that it will not escalate the
situation or that it will not go against the formidable package of
wishes which constitutes our strategic planning. In other words,
that India will oblige us by consulting our convenience.
If our options are limited, India's are not. If retaking the Kargil
heights becomes a longish affair, it can cross the Line of Control
in a bid to interdict the supply routes of the fighting force
occupying the peaks. The Indian army can strike elsewhere along the
Line of Control or it can test Pakistan's defences at points of its
choosing along the international frontier. With each passing day
the threat of a conflict is growing, not receding, with influential
voices in India swelling to a chorus in demanding a wider settling
of accounts with Pakistan.
Against the backdrop of this worsening situation it is not enough
for Pakistan to say, as its politico-military leaders are
increasingly doing, that the country is prepared for all
eventualities and that it will give a befitting response to Indian
aggression. It is of course the duty of the armed forces to defend
the nation's frontiers and if war is imposed by India the people
and the armed forces will be one in fighting the aggressor. It is,
however, scarcely the height of wisdom to acquiesce (to put it no
stronger than this) in a situation which leads to war and then to
think of giving one's adversary a bloody nose.
A defensive war, one imposed from outside, is of course a necessity
and should be fought to the death. But it is folly of the highest
kind to start hostilities, or initiate a process which leads to
hostilities, if the objective is less than clear or is not worth
the fighting. This is not defeatism but simple common sense. That
our soldiers are brave and our people capable of responding to any
challenge, no matter how severe, are given things which in a
discussion of this sort should be taken for granted. At issue is a
different question altogether.
Have we carefully considered the possible consequences of the
Kargil operation? Even if there is a minuscule chance of it leading
to war, have we taken this into account? Or, on the contrary, are
we being sucked into a conflict not of our choosing simply because
we have lost control over the situation?
It would be tragic if the last were to be true for it would show a
singular and recurring inability to learn from our own history. As
in 1965 and 1971, we are allowing ourselves to become prisoners of
an unfavourable situation. On display is the same thumping, chest-
beating rhetoric and the same contempt for reality. And the same
desire, befitting more a child than mature nation, that the outside
world should come to our rescue and turn a developing fiasco into a
face-saving diplomatic solution.
It is of interest to dwell on those distant triumphs. No sooner had
the '65 war started than Ayub Khan realized his blunder and began
looking for any half-decent way to end the conflict. "They've got
you by the throat, Mr President," (or words to that effect) is what
the American ambassador reportedly told the Field Marshal and there
was nothing that the Field Marshal could say in reply. In '71 Yahya
Khan and General Niazi expected Chinese and American apparitions to
come to Pakistan's rescue.
Pakistan is not a nation of nincompoops or morons. Its people
(common people, that is) are talented, hard-working and brave.
Trapped in a cruel destiny, they may not have much of a choice when
it comes to mediocre or second-rate leadership. But they certainly
deserve better than to be led once again into a conflict with no
clear objectives. If national survival is at stake, the people of
Pakistan can turn the entire country into a battlefield. But
between this vision of Armageddon and the unthinking slide to war
we are seeing there is a world of difference.
What makes the present situation all the more alarming is the
growing feeling that there is no firm hand on the tiller. Who is in
charge? Who has thought up this operation which in the space of a
few weeks has taken the nation to the brink of war? There is
certainly no Churchillian ring to the heavy mandate which instead
looks slightly rattled as if what is happening was not part of
anyone's game-plan. As for the army chief, he has lately begun
looking very grim.
Nothing is lost, however. It should not take an American Centcom
commander to tell us what is in our best interests or what we
should do. If we can sustain the Kargil build-up and thrust, fine.
Let us not in that case be deterred by the US or any other power.
But if politically our position is ill-judged and therefore
untenable, we could do worse than to remember the military maxim
which advises against reinforcing a failure.
===================================================================
SPORTS
990621
-------------------------------------------------------------------
Australia lift Cricket World Cup '99
-------------------------------------------------------------------
LONDON, June 20: The bowling of Shane Warne and Glenn McGrath led
Australia to an eight-wicket win over Pakistan on Sunday in one of
the most one-sided finals in the history of the World Cup.
Leg-spinner Warne ripped through the middle order with four wickets
for 33 as Pakistan were bundled out for 132 in 39 overs, the lowest
score in a World Cup final. Fast bowler McGrath, who made the
initial breakthrough, ended with two wickets and conceded a mere 13
runs from his nine overs.
It left Australia a simple task and openers Adam Gilchrist and Mark
Waugh wasted no time. Australia achieved the target in 20.1 overs.
Gilchrist blasted a half-century from only 33 deliveries which
included eight fours and a six. He was out almost immediately
afterwards for 54, caught by Inzamam-ul-Haq off the first ball by
spinner Saqlain Mushtaq to leave Australia on 75 for one. But with
almost 40 overs remaining, the match was as good as over.
Ricky Ponting also departed for 24, edging a simple catch to
wicket-keeper Moin Khan off Wasim Akram but Mark Waugh (37 not out)
and Darren Lehmann (14 not out) comfortably saw them to victory
with Lehmann hitting the winning boundary through the covers.
It left captain Steve Waugh to lift the trophy, the second time
Australia have won it following their triumph in Calcutta against
England in the 1987 final.
Australia join West Indies as the only two countries to have won
the trophy twice.Reuters
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990621
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Hockey: Pakistan out of the next Champions Trophy
-------------------------------------------------------------------
Sydney Friskin
BRISBANE, June 20: In a dramatic finish Pakistan lost 4-3 to
England in the 5th place play-off at the 21st Champions Trophy
hockey tournament here.
A tense battle of skill and attrition ended with a golden goal by
England in the second period of extra time.
The overall effect is that Pakistan, having finished last, are now
forced to drop out and will miss the 22nd event of the series next
year in Amsterdam. There was a previous crisis in 1986 when 11th
place at the world cup in London should have shut Pakistan out but
they were squeezed into the next event by virtue of being Olympic
Champions.
More tragic still was the story of the match itself. Pakistan were
comfortably placed with a 2-0 lead within 20 minutes but slackness
in defence changed the picture. England levelled the score at 2-2,
went 3-2 ahead before Pakistan redressed the balance, eventually to
send the match into extra time.
Islahuddin, who was captain of the victorious Pakistan team in 1978
and is here as a commentator, said that Pakistan played defensively
and that these tactics eventually cost them the match. The fact
that two of Pakistan's goals came from penalty corners adds weight
to his comments. At the end of it all Pakistan's officials here
were absolutely devastated.
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990625
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World Cup cricketers to face EB music
-------------------------------------------------------------------
ISLAMABAD, June 24: Ehtesab Bureau has already initiated probe into
reports of match-fixing and objectionable behaviour against
Pakistan cricketers as a batch of national team was scheduled to
return home Thursday.
The Ehtesab Bureau confirmed that it has undertaken inquiries
against Pakistan team after concrete evidence of wrongdoing by the
country's World Cup cricketers was presented by intelligence
agencies.
Leading stars, including skipper Wasim Akram and fast bowler Shoaib
Akhter, were missing from the batch that returned from England to
face mounting public anger and criticism in the aftermath of fiasco
at the World Cup final against Australia at Lord's (London).
The sources told APP Thursday that the competent authority had
referred the case of Pakistan cricket team to the Ehtesab Bureau
after intelligence agencies submitted concrete evidence of indecent
behaviour by some cricketers amidst suggestions that the World Cup
final thrown away.
The intelligence agencies had presented evidence of indiscipline,
lack of coordination and planning by management and members of the
cricket team.
"We will call all the players and officials separately for them to
present their side of the story", said an Ehtesab Bureau official.
He said the Ehtesab Burea will prepare a reference after completing
its investigations and the same will then be presented to the
President of Pakistan, who is Patron-in-Chief of Pakistan Cricket
Board, for necessary action.
The EB official said that the report of judicial probe held by
Justice Malik Muhammad Qayyum of Lahore High Court will also be
taken into account during investigations against cricketers.
The report of judicial inquiry is also expected to be presented to
the President of Pakistan in the second week of next month.
The official pointed out that under the Ehtesab Burea act, the EB
is authorised to summon anybody against whom allegations of
financial impropriety or bringing the country's name into disrepute
are levelled.
As part of evidence, the intelligence agencies referred to the
statement of skipper Wasim Akram before the match against India
that "it would be a good practice match for us".
The report also blamed Chairman Pakistan Cricket, who was present
in England alongwith entire PCB hierarchy, for failing to maintain
discipline in the team.
The report also pointed out that a strong lobby, within and outside
the team, got rid of coach Javed Miandad and skipper Aamir Sohail,
because they laid emphasis on maintaining discipline in the team.
The EB official said some of the players "went overboard in merry-
making" during the course of the World Cup in England, raising
suspicions of "deliberate surrender" by the Pakistan team in the
final.
The one-sided final at Lord's, meanwhile, continues to fuel
people's anger as they were giving vent to their feelings of
disappointment by burning players effigies and pelting their homes.
The mother of skipper Wasim Akram also pleaded to fans to change
their attitude and encourage players for better results in
future."When two teams play, one has to lose but the attitude of
people of Pakistan is unfortunate", she said.APP
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990624
-------------------------------------------------------------------
Shahbaz flays PHF for set-back in hockey
-------------------------------------------------------------------
KARACHI, June 23: Former hockey stalwart Shahbaz Ahmed on Wednesday
appealed to the Prime Minister to take notice of persistent
setbacks in hockey and termed the present state as "the darkest
period in the game."
Talking to APP before his departure to Canada to play league
matches, Shahbaz said it is hight time that drastic measures are
taken to revive the standard of hockey in Pakistan.
"Hockey is our national game and it is a sorry state. I appeal the
Prime Minister Nawaz Sharif to dismiss the present incompetent
management of Pakistan Hockey Federation(PHF) and take drastic
measures to save the future of the game," he said.
Pakistan Premier is the patron of national hockey. Shahbaz, who in
his illustrious career won 12 Man- of the- Tournament awards, said
people are just reacting to cricket team's loss in the final when
hockey, the national games, has gone down. People should raise
their voice for hockey also," he said. The 32- year old Shahbaz
,known for his slick stick work will play few league games in
Canada.
"When we lost the Commonwealth Games last September they said it
was nothing, then we lost Asian Games they said it was bad luck and
now we have lost the Champions Trophy which is the biggest
setback," said Shahbaz, who led Pakistan to World Cup Title in
1994.
Shahbaz criticised the selection of the team in the last one year
and said Pakistan's best centre forward Kamran Ashraf and full back
Naveed Alam have been victimised.
"Naveed scored 22 goals in the National championship and other
competitions and Kamran is still the best but the present
management does not like them," he stated.
Former Pakistan captain feared that time is running out for
Pakistan hockey.
"This is a do or die situation. The present problem is on since the
1996 Olympics and if we do not take measures hockey will finish in
the country," he concluded.
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