------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 27 March 1999 Issue : 05/13 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS ------------------------- + India deploys gunships in Kashmir + Pakistan, US end talks on N-export control + India eases visa rules for select categories + Supreme Court allows govt to appeal in FCAs case + NA passes bill to raise Sales Tax by 2.5% + Govt, APNS and CPNE agree on Press Council formation: minister + Benazir accuses govt of endangering security + SHC declares quota system un-Islamic, unconstitutional + ATC judges to be named soon, says Khalid + Pakistan capable of thwarting aggression: Tarar + No harm in trade, bus service with India: COAS + US informed about CTBT signing + MQM believes in solidarity of Pakistan: Altaf + Power tariff: Pakistan to hold talks with IMF --------------------------------- BUSINESS & ECONOMY + Active short covering at lower levels lifts share market + 'Bigger state units to be privatised next fiscal' + Airlines seeking alliance with PIA + Hubco, WAPDA negotiating new date of hearing + PM directs rate cut on saving schemes + SBP advice: Banks to upgrade treasury depts + New energy policy soon: Gulfraz + Federal divisible pool: NWFP share may drop by Rs1.62bn + Cottage industry wants raise in exemption limit + $900m debt rescheduling: Banks to respond tomorrow + PTCL urges govt to cut excise duty on local calls + Higher rate for growers, relief to industries --------------------------------------- EDITORIALS & FEATURES + Monumental proof Ardeshir Cowasjee + The colour prejudice By Irfan Husain ----------- SPORTS + Pakistan crush India by 143 runs + Pakistan Greens trounce India; PM gives away trophies + Surprise return of Shahbaz Jr in Pakistan squad

India deploys gunships in Kashmir

SRINAGAR, March 26: The Indian army has deployed helicopter 
gunships for the first time in its 10-year struggle with militants 
in Kashmir, press reports said.
The Kashmir Monitor said "deafening sounds" were heard in the 
northern frontier district of Kupwara on Thursday as helicopters 
shelled the forest area.
"Sources said that the government has been forced to take the 
extreme step, as Kupwara forests are heavily infested with the 
militants," the daily said.
An army spokesman described the reports as "fallacious" and a 
"figment of the imagination."
The Greater Kashmir newspaper also reported the use of helicopters 
in Kupwara.-AFP

Pakistan, US end talks on N-export control

ISLAMABAD, March 26: Pakistan and the US concluded expert-level 
talks on export controls as Islamabad reiterated its pledge not to 
transfer its nuclear technology to third countries, APP news agency 
The US side, led by acting deputy assistant secretary of state for 
military and political affairs Gregory Suchan, left for home after 
two days of talks with Pakistani disarmament officials, the agency 
said. It gave no further details.
Officials here said on Thursday that Pakistan was committed that 
fissionable material should not be exported, and its record was 
This was the third round since the expert-level talks were launched 
in Washington in October following tit-for-tat nuclear tests by 
India and Pakistan in May last year.-AFP

India eases visa rules for select categories

NEW DELHI, March 25: India on Thursday eased travel restrictions 
for prominent Pakistanis.

A foreign ministry communiqu� here said a select category of 
Pakistanis as well as their spouses, unmarried daughters and 
children up to 18 years of age would be given multiple-entry visas 
for a year on certain conditions.
It said they would be "exempt from police reporting" and "entitled 
to travel anywhere in India except certain specific areas for which 
prior permission would be required."
Pakistanis eligible under the newly liberalised visa regime include 
Supreme Court and High Court judges, the attorney general, solicitor
general and chairperson of the Supreme Court Bar Association and 
editors-in-chief and owners of national newspapers.
Members of Pakistan's parliament, state assemblies, leaders and 
deputy leaders of the opposition in states, vice-chancellors of 
government-approved universities and senior bureaucrats are also 
Provisions have also been made for the visit of tourist groups to 
India. These visits would be organised by registered tour operators 
in India and tourists would not have to report to police personally 
at each destination. Detailed procedures for the visit of such 
tourist groups are being finalised.
The new travel guidelines were agreed upon in talks between the 
Indian and Pakistani foreign ministers last week in Sri Lanka.
New Delhi's announcement follows Monday's swap of civilian 
prisoners between the two countries in the first such exchange in 
eight years as well as a historic bus trip to Pakistan in February 
by Indian Premier Atal Behari Vajpayee.-AFP
Our reporter Parvaiz Ishfaq Rana adds from Karachi: The import of 
lint cotton from India has started with the arrival of a maiden 
consignment of 150 bales, few days back.
Indian Cotton Export Corporation sells surplus cotton after 
inviting international tenders but the sale to Pakistan appears to 
be a goodwill gesture.
India is expected to have an exportable surplus of about two 
million bales during the current season. In India, the Cotton 
Advisory Board has assessed 16.150 million bales production this 
year, whereas mill consumption is estimated at 14.100 million 
The spinners are reported to have entered into forward contracts 
for the import of 0.350 million bales. The latest PCGA figure of 
phutti arrival confirms that the current season crop size would not 
be more than 7.3 million bales.
With the present operational capacity of 8.3 million spindles, the 
consumption is estimated to be around 8.5 million bales, indicating 
a shortfall of 1.5 million bales. However, if the spinners are 
provided man-made fibre at world market rates the blending ratio 
could improve and greatly assist in narrowing down the cotton 
The spinners up to March 25 have physically imported around 91,695 
bales, with bulk of the commodity coming from CIS states. Cotton 
imported from UAE is basically of Indian origin because some 
spinners prefer to import it through third country.
According to customs import figures around 7,271 bales have come 
from CIS, 765 bales from USA, 2,239 bales from Uzbekistan, 1928 
bales from Iran and 1141 bales from UAE.

Supreme Court allows govt to appeal in FCAs case
Rafaqat Ali 

ISLAMABAD, March 25: The Supreme Court on Thursday granted leave to 
appeal to the government against the LHC verdict declaring void the 
freezing of foreign currency accounts (FCAs).
A three-member bench ordered that the appeals be taken up for 
"early hearing". When asked by the counsel to define "early 
hearing", the court said the appeals should be decided before the 
summer vacations of the court, beginning from July.
The effect of the apex court's order is that the stay granted by 
Justice Irshad Hasan Khan of the Supreme Court on Jan 28, remains 
in force.
The court also ordered that the constitutional petitions, filed 
directly in the Supreme Court, also be taken up with the 
government's appeals.
When pointed out by some aggrieved persons that after the decision 
on FCA freezing, the banks had stopped paying them interest, the SC 
asked them to file separate applications in this regard. It 
observed that the banks could not stop paying interest on FCAs.
When Raja Akram, counsel for a majority of the respondents, 
requested that the list of people who had made withdrawals from 
their foreign currency accounts on the night of May 28, be brought 
on the court record, the bench observed that it was not relevant to 
the case before it.
Raja Akram informed the court that the list was produced before the 
LHC, and the judges, after perusing it, had returned it to the 
government instead of placing it on record. He contended that the 
list should be placed on record so that the people should know who 
were the government's favourites.
The three-member bench which granted leave to appeal was headed by 
acting Chief Justice Saiduzzaman Siddiqui, and comprised Justice 
Shaikh Ijaz Nisar and Justice Mamoon Kazi.
A three-member bench of the Lahore high Court in its decision on 
Jan 27 had declared void section 2 of the Foreign Exchange 
(Temporary Restriction) Act, 1998, freezing Foreign Currency 
Accounts, and had ordered their immediate restoration. A stay was 
granted the next day by Justice Irshad Hasan Khan of the Supreme 

NA passes bill to raise Sales Tax by 2.5%
Mohammad Yasin

ISLAMABAD, March 25: The National Assembly on Thursday morning 
passed two bills, the first one called The Sales Tax (Second 
Amendment) Bill, 1998 with full fledged debate with participation 
from the opposition and independent members and the second bill 
called The Customs (Amendment) Bill, 1998 (Ordinance No. XVI of 
1998) passed by the Treasury Benches in the absence of the 
opposition and independent MNAs who had staged a walkout since the 
government declined to defer the bill until Friday or even to 
Thursday evening.
The house had through debate on the first bill seeking to raise 
Sales Tax from 12 and 1/2 per cent to 15 per cent. The bill was 
moved by the Parliamentary Secretary for Finance Kamil Umar. The 
bill was opposed by the opposition and independent MNAs. They made 
criticism of the bill on broad principles. All the three readings 
of the bill were done by the members. It was adopted ultimately by 
the house when the Chairman Syed Fakhar Imam put it to vote.
The bill made amendment in Section 3 of the Sales Tax Act, 1990. 
The bill also envisaged amendment of section 8, the Sales Tax Act, 
1990. It also made amendment of section 13, the Sales Tax Act, 
1990. Under Amendment of section 34, the Sale Tax Act, 1990, the 
law will be enforced from 16th instead of 21st. 
Earlier in their speeches, the opposition and independent members 
made a scathing criticism of the bill. 
Many MNAs were of the opinion that the increases in the taxes would 
go on lowering the tax revenues.
Those who participated in the debate included Syed Khurshid Ahmed 
Shah, Qaisar Sheikh, Nasimur Rehman, Babar Ghauri, Pir Aftab Shah, 
and Aftab Shaban Mirani.
Parliamentary Secretary for Finance Kamil Umar defended the bill 
and said that it would prove beneficial for the government in 
raising the revenues. 
The second bill called the Customs (Amendment) Bill, 1998, moved by 
the Parliamentary Secretary for Finance Kamil Umar, was adopted by 
the National Assembly after the independents, PPP, ANP and MQM MNAs 
had walked out from the house after no agreement emerged between 
the treasury and the opposition on the time of the holding the 
In the amendment of section 21A, Act IV of 1969, section 21A shall 
be omitted. In Amendment of section 21, Act IV of 1969, the clause 
(e) shall be substituted. It reads: "The repayment in whole or in 
part of Customs duties paid on the importation of any goods which 
have been used in the production, manufacture, processing, repair 
or refitting in Pakistan of goods meant for exportation, or for 
supply to industrial units, projects, institutions, agencies and 
organisations, entitled to import the same at concessionary rates." 
"Savings:- All notifications issued, orders made, or exemption 
granted under section 19,20, 21, or 21A as it existed immediately 
before the commencement of the Customs (Amendment) Ordinance, 1998, 
shall continue in force but any such notification, order or 
exemption may, at any time, be rescinded, modified or withdrawn by 
the Federal Government or the Board which has issued, made or 
granted such notification, order or exemption."

Govt, APNS and CPNE agree on Press Council formation: minister

ISLAMABAD, March 25: Information Minister Mushahid Hussain on 
Thursday said that there was an agreement in principle between the 
government and the APNS and CPNE on the formation of a press 
council (PC), assuring that the council would be an independent 
He was apprising the National Assembly's standing committee on 
information about government's stand on the formation of a press 
The committee met at the parliament house with Khurshid Mahmood 
Kasuri in the chair. The representatives of All Pakistan Newspapers 
Society and the Council of Pakistan Newspaper Editors also attended 
the meeting and briefed the legislators about their views on the 
proposed council.
Mushahid said the information ministry had handed over a fresh 
draft of the council to the two bodies. He said there would be 
another meeting between the ministry and the two bodies on April 7.

"The formation of a council with the aim of self-accountability 
will certainly be in line with the spirit of democracy and it will 
help in promoting democratic culture in the country."
Earlier, APNS and CPNE representatives including Hameed Haroon, Zia 
Shahid, Mujeebur Rehman Shami and Arif Nizami briefed the committee 
about the two bodies' views on the council, the Freedom of 
Information Act and background of the Printing and Press Ordinance.
They appreciated the government for holding consultations with the 
APNS and CPNE before enacting laws pertaining to press matters. 
They urged that the freedom of the press should be ensured in a 
democratic step.
Mr Kasuri expressed the hope that the outcome of the meeting would 
help in facilitating the process of legislation.
The meeting was also attended by MNAs Hassan Musanna Alvi, Shakeel 
Ahmad Baloch, Haji Baz Gul Afridi and Senator Pervaiz Rasheed, 
chairman PTV.-APP

Benazir accuses govt of endangering security
By Our Reporter

KARACHI, March 24: Addressing a massive rally of Pakistan Awami 
Ittehad (PAI) the leader of the opposition, Benazir Bhutto, alleged 
that prime minister Nawaz Sharif was endangering national security 
by planning to reduce the defence budget, by 7 billion rupees, at a 
time when India had increased it and by advocating trade with New 
Delhi for promoting the Ittefaq group's interests.
It was a show of strength by Ms Bhutto who drove with Nawabzada 
Nasraullah Khan, Hamid Nasir Chattha and other leaders of the 
Pakistan Awami Ittehad (PAI) heading the mile-long caravan, on 
wheels and on foot. People from all parts of the city had joined 
the procession.
The rally at Daud Chorangi, in Landhi industrial area, had 
attracted a large number of workers who had either been thrown out 
of jobs by the present government or felt threatened by its 
Addressing the rally, Ms Bhutto alleged that after kicking out over 
40,000 bank employees and making several thousands redundant in 
Wapda and other institutions, the Nawaz regime was now planning to 
destroy the Pakistan Steel Mills to remove a major obstacle in the 
way of promoting their family's business.
Since the days of Ziaul Haq this conspiracy had been hatched by 
Mian Nawaz Sharif, she claimed and said Mr Sharif was so desperate 
that he had even trampled the sanctity of chaddar and chardewari by 
dragging the wife and daughter of Usman Farooqi to the police 
station in the most humiliating manner.
She accused the Prime Minister of destroying the country's economy, 
which had resulted in the closure of over 9,000 industries, created 
unemployment and mounted uncertainty.
The opposition leader claimed that Mr Sharif had no love for the 
people of Sindh or Karachi and accused him of not providing funds 
for various development projects in the metropolis.
She alleged that the regime had hatched a conspiracy to pit the 
army against the people and bring disrepute to that vital 
institution. Because of Nawaz's policy the Indians had started 
equating the situation in Karachi with the conditions in the Indian 
occupied Kashmir.
"We pulled the army out of that situation because we don't want any 
harm to them. Their job is to defend the frontiers and not to be 
involved in siege-and-search operations against the poor people of 
Karachi," she said. She alleged that Mian Nawaz Sharif released the 
terrorists so that Karachi could be plunged into civil strife again.
Ms Bhutto recalled her government's achievements and mentioned 
development projects initiated and completed in Karachi, including 
a reduction in load shedding and the building of bridges.
Ms Bhutto warned the Prime Minister against any attempts to 
disqualify her. She demanded that an interim government be 
immediately established to hold fresh elections.
SHC declares quota system un-Islamic, unconstitutional

KARACHI, March 24: A division bench of the High Court of Sindh has 
disposed of a petition filed in 1993 by Afaq Ahmed, chairman of 
Mohajir Qaumi Movement, against the quota system.
The bench, consisting of Justice Abdul Hameed Dogar and Justice 
Ghulam Nabi Soomro, disposed of the petition No. CP 2790/93 on 
March 4 in terms of the judgement of the Supreme Court in the case 
of Mushtaq Ahmed Muhal and others Vs The Lahore High Court and 
others, reported in 1997, SCMR page 1043. The petition of Afaq 
Ahmed was filed by Syed Sami Ahmed.
The Supreme Court's full bench headed by Justice Ajmal Mian, while 
relying on an earlier judgement of the Federal Shariat Court, had 
held that the quota system was not only un-Islamic but also 
unconstitutional. However, there is an attempt on the part of the 
federal government to extend the quota system for another 20 years 
by moving a bill in the parliament, but so far they have not been 
successful as they are not likely to get the support of the Senate.
In terms of the judgement of the Supreme Court all appointments 
henceforth have to be made on merit alone as envisaged in the 
Supreme Court's judgement. In that very judgement it has been held 
that every post or office is a trust in the hands of the appointing 
authorities. Those who have been assigned political powers to 
exercise their authorities have to do that as manifested in 
Almighty God's commandments.
In terms of the Federal Shariat Court's judgement as reported in 
PLD 1992 in Nusrat Mirza case and the latest judgement in the 
Mushtaq Muhal case, it has been held that Islam strictly forbids 
discrimination or gives preference between man and man except for 
ability, capability etc.
Afaq Ahmed had filed his petition on September 29, 1993 and the 
same was admitted by Justice Nasir Aslam Zahid, the then chief 
justice of the High Court of Sindh, by a very comprehensive order 
on December 1, 1993 and then this petition was posted in court from 
time to time, but each time it was adjourned for one reason or the 
Before the disposal of the present petition, it was placed on 
October 22, 1998, before a bench comprising Justice Rana Bhagwandas 
and Justice Ghulam Nabi Soomro and again the contention of the 
counsel was that the petition be allowed in terms of the judgement 
of the apex court in Mushtaq Muhal's case.

ATC judges to be named soon, says Khalid

ISLAMABAD, March 24: Law Minister Khalid Anwar on Wednesday assured 
that the appointment of anti-terrorism courts' (ATCs) judges would 
be made soon, in consultation with the judiciary.

Talking to APP, he denied reports of any conflict between the 
executive and the judiciary on the matter of judges' appointment. 
The law minister regretted that some political elements were 
engaged in giving a wrong impression regarding appointment of 
judges for ATCs.

He said there was no question of delay in the appointment of the 
judges as, he added, "The process does take some time".

Mr Anwar said in the beginning eight to 10 courts would be set up 
in Sindh, and later their strength could be enhanced according to 
the requirement.

To a question, he said the summary for the appointment of judges 
would be sent to the Prime Minister at the earliest.

The minister said the government believed in supremacy of the law 
and the Constitution, and would strictly abide by it, while dealing 
with all matters, including the appointment of judges.-APP

Pakistan capable of thwarting aggression: Tarar

ISLAMABAD, March 23: President Rafiq Tarar on Tuesday said 
Pakistan's desire to live peacefully with its neighbours should not 
be misconstrued as it was capable of thwarting any aggression.

The President was addressing Pakistan Day parade at Jinnah Avenue 
here. It was attended by Prime Minister Nawaz Sharif, Senate 
Chairman Wasim Sajjad, federal ministers, parliamentarians, 
diplomats and three services chiefs.
Tarar said Pakistan wanted to have good and friendly relations with 
all neighbouring countries on the basis of mutual respect and 
coexistence. "But I want to make it clear that our desire for peace 
should not be misconstrued as our weakness."
Pakistan has the capability of frustrating any evil design of the 
enemy, said the President. "The conditions prevailing around us 
warrants us not to remain oblivious of our defence," he said. 
"Our armed forces are equipped with latest weaponry, instilled with 
spirit of faith, and acquainted with high professional techniques."
Tarar said, the defence of the country was in safe and robust 
hands. The spirit, courage and professional excellence of Pakistan's
armed forces spoke of their high standards.
The President said March 23, had a special importance this year as, 
by the Grace of God, Pakistan had become a nuclear power. "We have 
to come a long way to achieve this goal," said the President.
Tarar said, the situation in May last year had taken a new turn and 
Pakistan was facing many problems both from within and without. On 
the one hand," the enemy was ready to pounce on us," while 
internally, the country was faced with an economic pressure and 
terrorism. But there was no reason to be worried as the nation could
reach its destiny by following the laid down cardinals of the Holy 
Quran and Sunnat of the Holy Prophet (PBUH).
He vowed that Pakistani nation would not hesitate from giving any 
sacrifice for the development and progress. He paid glowing 
tributes to the armed forces for braving the difficulties they 
faced in fulfilling their duties for the defence of the country.
Tarar said, March, 23 was a milestone in history of the Muslims of 
the subcontinent, because on this very day, they had demanded a 
separate homeland for them. The rationale behind their demand was 
that they should be able to lead their life in accordance with the 
social, cultural and religious traditions.
This was a dream, they saw but, it was far from the reality at that 
time. However, under the true and sincere leadership of the Quaid- 
e-Azam Muhammad Ali Jinnah, the dream was turned into reality as 
they ultimately won a separate homeland for them.
Tarar said, since the creation of Pakistan in 1947, the country had 
been passing through many ups and downs. It had to face external 
aggression, internal political instability and sabotage but the 
entire nation confronted all these challenges with unity.
With its indomitable determination the nation would come out from 
all challenges successfully.
He said we would realise that we have committed mistakes if we 
analyse our performance in the light of the objectives of our 
independence. "But we should not feel disappointed," he said and 
added, "we should forge unity in our ranks and act upon the three 
golden principles of Quaid-e-Azam Faith, Unity and Discipline."
He said that despite our weaknesses, democracy had taken roots in 
the country.
He said the government had taken several steps for the development 
and progress of the country. However, he added the success of the 
government depended upon the unconditional support and complete 
participation of the people in its efforts.
The President said political differences and constructive criticism 
were the part of democratic culture. "We should not be worried 
about it."
Tarar said improvement in the law and order situation and redressal 
of economic problems were not the responsibility of the government 
alone. "It is our collective responsibility and we should fulfil 
He also paid rich tributes to country's scientists, armed forces, 
para-military troops for making country's defence impregnable by 
carrying out nuclear tests in May last year.
The President announced a special medal, "Medal of Integrity" for 
all those engineers and scientists who contributed to making 
Pakistan's defence impregnable.
He said Pakistan would continue to extend its moral, diplomatic and 
political support to Kashmiri people till they achieved their right 
to self-determination.
Tarar said Pakistan wanted settlement of Kashmir issue through 
peaceful means.
Kashmiri people, he said, had been giving sacrifices for the past 
50 years for their right to self-determination.
Kashmiris have launched an indigenous struggle to wrest back their 
right to self-determination, promised to them under the UN Security 
Council's resolutions.-APP

No harm in trade, bus service with India: COAS
Bureau Report

ISLAMABAD, March 23: Chief of the Army staff, Gen. Pervaiz 
Musharraf on Tuesday said that Pakistan had not changed its stand 
on Kashmir after the recent talks between prime ministers Nawaz 
Sharif and Atal Behari Vajpayee.
Talking to reporters after the investiture ceremony at the 
President House here the army chief said that the launching of bus 
service was a good thing. "Despite this (bus service), our point of 
view on Kashmir is unchanged".
He said there was nothing wrong in talks and the launch of bus 
service with India. Gen. Musharaf said that Kashmir problem might 
not be linked with other issues.
It must not be construed from the talks that Pakistan has changed 
its position on Kashmir, the Army chief asserted.
Asked to comment on Premier Vajpayee's statement that Kashmir was 
the integral part of India, Gen. Musharraf said he would not like 
to talk about that. "You better do not seek my comments on this", 
he added.
To another question the COAS said that there was no harm to start 
trade with India. "In my view our position on Kashmir will continue 
to be the same even if we establish trade relation with India", he 
Talking about the Ghauri and Shaheen missiles, which were displayed 
in the Pakistan Day Parade, he said that was a great achievement of 
the country to have such a sophisticated missiles.
Responding to a question on Karachi situation with particular 
reference to Asif Bhoja's murder, the COAS said he was shocked over 
the incident and described it a "regrettable act of crime". 
However, he said, single incidents should not be interpreted as 
deterioration of law and order situation.
He told a reporter that currently there was no plan to set up 
military courts for the recovery of Wapda dues from the defaulters. 
He evaded a question over Supreme Court's decision about abolishing 
of military courts.
To another question about his proposed visit to China, Gen. 
Musharaf said the agenda for the China visit had not yet been 

US informed about CTBT signing 
By Shaheen Sehbai
WASHINGTON, March 21: Both Pakistan and India have conveyed to the 
United States their desire to sign the CTBT some time this summer, 
paving the way for repeal of the amendments under which nuclear 
sanctions have been imposed.
The congressional move for the repeal of the Pressler and Symington 
Amendments has already been made while a five-year waiver authority 
is being sought for the President for ending sanctions under the 
Glenn Amendment.
According to congressional sources, once the Pakistan-specific 
Pressler Amendment is repealed, Pakistan will be able to buy the 
defence equipment, specially for its air force to upkeep and 
maintain its fleet of F-16 fighters.
The rough time frame for the repeal of these amendments and the 
signing of the CTBT is said to be the summer of 1999 and the 
sequences of these developments will be decided in the ninth round 
of top level talks due in May between Strobe Talbott and his 
Pakistani and Indian counterparts.
In Pakistan, the talks could face some disruption as the present 
Foreign Secretary Shamshad Ahmed, who was the lead negotiator for 
Islamabad, may be retiring and moving to New York as his country's 
permanent representative to the UN.
But experts believe that for the sake of continuity, even in his 
new position Mr Shamshad could be asked by Islamabad to remain the 
chief negotiator with Mr Talbott to continue the rounds that he has 
been having in the last many months.
The congressional move to repeal Pressler was initiated by Senator 
Sam Brownback but Pakistani diplomats and congressional experts say 
progress on his motion would depend on how the other negotiations 
with Pakistan and India proceed.
Once both Pressler and Syming-ton Amendments are repealed and 
Pakistan signs the CTBT, the president will then use his newly 
acquired authority and waive Glenn sanctions for five years, thus 
effectively removing what Pakistanis call "the coercive 
One major factor in forward movement on all these nuclear- related 
issues would be the attitude of the Jesse Helms committee, which is 
holding back Senate ratification of the CTBT.

MQM believes in solidarity of Pakistan: Altaf
By Our Staff Correspondent

LONDON, March 21: Muttahida Qaumi Movement (MQM) Chief Altaf 
Hussain has said that his organization believes in the solidarity 
of Pakistan and is pursuing its struggle while remaining within the 
four corners of the federation.
Addressing workers in Johannesburg in South Africa on telephone on 
Saturday on the occasion of the 15th founding day of the party, Mr 
Hussain said that MQM's struggle for achieving rights for the 
Mohajir community, which have been denied to them by the successive 
governments in Pakistan.
He said that Mohajirs have been discriminated by the ruling class 
in Pakistan since its creation and although they had been 
demanding, nothing else but what was their legal right.
He said the discrimination has only created hatred among the 
Mohajir community and warned that persistent discrimination and 
oppression not only creates differences among different communities 
but also results in demographic changes. Mr Hussain said that it 
was because of the result of persistent oppression that thousands 
of Mohajirs have been forced to leave their homes and hearths and 
settle abroad. He claimed that Mohajirs had offered greatest 
sacrifices for the creation of Pakistan but today they cannot even 
call themselves Mohajirs in their own country.
Mr Hussain said that thousands of MQM workers have been killed in 
state operations, thousands have been rendered homeless and forced 
to leave their homes. The MQM chief said that despite extreme 
repression, Mohajirs will continue their struggle and not succumb 
to any pressure. 

Power tariff: Pakistan to hold talks with IMF
Bureau Report

ISLAMABAD, March 21: Pakistan is likely to go back to IMF and re-
negotiate the condition referring to power tariff, it is learnt.
Authentic sources told Dawn that once a final decision is taken at 
home on the subject of rationalisation of power tariff, the 
government will go to the IMF to re-negotiate the condition.
"The situation of electricity consumption and its availability in 
Pakistan has now changed which demands for the rationalisation of 
existing power tariff," a source said, adding that Pakistan could 
explain this to the IMF.

The sources said that the concerned authorities in the Prime 
Minister's office were also supporting the rationalisation of 
tariff to increase the consumption of electricity in the country.
Pakistan has agreed with the IMF that the 30 per cent decrease in 
the power tariff made by the government during last October will be 
phased out in two stages by September, 1999.
The finance ministry is very enthusiastic to implement the IMF 
condition and was all set to raise 15 per cent (including 4 per 
cent surcharge) power tariff with effect from April, 1999. However, 
a controversy has started between the finance ministry and the 
ministry of water and power following later's recommendation for 
the rationalisation of power tariff.
The sources said that what Pakistan would need to explain to the 
IMF was that the existing tariff slabs were introduced in the past 
to conserve the power consumption because of electricity shortage. 
But with the availability of surplus electricity, as a consequence 
of army's successful operation in Wapda, these slabs have become 
outdated and contradictory to the present situation.
"We will have to introduce new tariff slabs to encourage power 
consumption," a source said. "In case we simply increase the power 
tariff according to the existing tariff slabs, the country's 
industry will badly suffer and there will be a drastic decline in 
power consumption," the source said.
The proposed sale of electricity to India is also connected with 
the rationalisation of the power tariff. The Indian team as per 
agreement between the two countries, was supposed to be here in 
March to finalise the power sale deal. But so far no date has been 
communicated by India.
The sources said that rationalisation of power tariff for Pakistani 
consumers would enable the authorities to decide the minimum power 
tariff to be acceptable for Pakistan from India.
India during the second round of talks held in New Delhi, a couple 
of months back, had offered 2.5 cents per unit against Pakistan's 
demand of 7.5 cents per unit. "We have to settle the things at home 
first before selling power to India, " a source said.

Active short covering at lower levels lifts share market
Staff Reporter

KARACHI, March 26: After initial weakness, leading shares came in 
for active short-covering at the lower levels and mostly finished 
recovered, lifting the KSE 100-share index higher by 7 points.
The KSE 100-share index finally ended at 1,056.75 as compared to 
1,049.71 a day earlier. The market advance was led by pivotals such 
as Dewan Salman, Adamjee Insurance, Engro Chemical, Fauji 
Fertiliser and Shell Pakistan which posted gains ranging from 
Rs1.50 to 6.00 amid strong short-covering.

Other good gainers were led by Bank of Punjab Capital Securities, 
Balochistan Wheels and Cherat Paper which rose by Re1 to Rs2.45. 
Losses on the other hand were mostly fractional barring Bolan Bank, 
Umer Fabrics, PSO, Nestle Milkpak and Lever Brothers, which 
suffered fall ranging from Re1 to Rs5.00. Turnover fell to 105 
million shares from the previous 142 million shares owing to the 
absence of leading bears, while gainers forced a strong lead over 
the losers at 61 to 31 with 33 shares holding on to the last 
The most active list was again topped by Hub-Power, off 30 paisa at 
Rs16.30 on 37 million shares followed by PCL, easy 15 paisa at 
Rs18.60 on 16 million shares; Dewan Salman higher by Rs2.55 at 
Rs25.95 on 14 million shares; Fauji Fertiliser higher Rs1.50 at 
Rs55.55 on 11 million shares; Dhan Fibre up 55 paisa at Rs4.20 on 7 
million shares and PSO off Rs1.90 on 6.353 million shares.
The other actively traded shares were led by ICI Pakistan, higher 
45 paisa at Rs4.045 million shares; Ibrahim Fibre firm by 50 paisa 
on 1.950 million shares; MCB steady by 40 paisa on 1.234 million 
shares; Telecard higher 80 paisa on 1.216 million shares; Adamjee 
Insurance up Rs2.10 on 0.817 million shares and FFC-Jordan 
Fertiliser up 35 paisa on 0.734 million shares.
Defaulting companies: Shares of Pearl Fabrics and Pak Telephone 
came in for stray support but both were quoted unchanged on 500 and 
2,500 shares respectively.
Board meetings: Bank of Punjab March 27, D.M.Textiles, Chaudhry 
Textiles March 31, Idrees Textiles, Century Insurance and Fauji 
Fertiliser on April 1.

'Bigger state units to be privatized next fiscal'
By Ihtashamul Haque

ISLAMABAD, March 25: The 77th meeting of the Privatization 
Commission on Thursday decided to go for privatization of bigger 
state-owned enterprises (SOEs) during 1999-2000.
Privatization Commission Chairman Khawaja Muhammad Asif chaired a 
meeting to review the progress on the restructuring of (SOEs).
Informed sources said the meeting was of the view that the pace of 
privatization should be quickened specially by disinvesting the 
major state units during the next financial year.
The meeting also discussed the privatization of Pakistan 
Telecommunication Company Limited (PTCL), Habib Bank Limited, 
United Bank Limited (UBL) and the remaining shares of the Muslim 
Commercial Bank (MCB) and the Allied Bank Limited (ABL) which will 
definitely be sold off during June to September this year. The 
purpose, Asif said was to help retire the most expensive debt of 
about 7 billion dollars through these transactions.
The meeting was also told that the privatization of Convention 
Centre, Islamabad, Roti Corporation of Pakistan and the appointment 
of financial advisor for airports was in progress.
It recommended the privatization of Pakistan Engineering Company 
(PECO) and National Tubewell Construction Company (NTCC) during 
April 1999. 
The meeting also recommended to hand over Larkana Sugar Mill to 
Ministry of Industries for liquidation. Sources said that the prior 
to the privatization of many important public sector corporations, 
the Committee of Privatization Board of Pakistan (CPBP) will be 
held under the chairmanship of minister for finance and commerce 
Ishaq Dar. 
The board of will take a number of decisions prior to the 
privatisation of various state units. A number of other issues 
related to various transactions were also discussed in detail.
The participants included members of the Privatization Commission, 
Shahid Khaqan Abbasi, Chairman PIA, Afzal Khan, Chairman Oil and 
Gas Develop-ment Company (OGDC), Lt-Gen (retd) Ghulam Safdar Butt, 
Secretary Privatization Commis-sion, Zafar Ali Khan, senior 
officials of ministries of finance, water and power, industries, 
housing and works, aviation division and Expert Advisory Cell.

Airlines seeking alliance with PIA

ISLAMABAD, March 25: Many foreign carriers have approached the PIA 
to join in alliance with them.
According to a press release, a number of airlines had approached 
PIA in the past few weeks to join in an alliance. They include US 
carrier, European carrier, Middle Eastern carrier and Far Eastern 
Currently PIA is evaluating offers. In this regard the Chairman 
PIAC has instructed the Corporate Planning Department to review and 
evaluate the various offers and suggest the best alliance which the 
carrier should join.-APP

Hubco, WAPDA negotiating new date of hearing

KARACHI, March 25: The Hub Power Company and Water and Power 
Development Authority (WAPDA) are negotiating to fix a new date of 
hearing in consultation with the Arbitration Tribunal of 
International Chamber of Commerce (ICC), confirmed Hubco officials 

The counterparts were supposed to be present before the Tribunal in 
London on March 29.
In a short order on March 23, Sindh High Court (SHC) had ordered 
the Hubco and WAPDA to seek international arbitration in the 
current row over tariff issue.
'There is no move as yet for an out of court settlement of the 
issue,' said a Hubco spokesperson said. 'But talks are in progress
to determine a new date of hearing in London,' said the company 
The spokesperson, however, maintained that the company was prepared 
for a negotiated settlement of the issue. Both the sides have hired 
UK based firms to fight the case through international arbitration 
sought by Hubco which runs a 1292 mega watt oil-fired power plant 
near Karachi.
Rumours pertaining to Hubco pushed selling pressure causing the 
chip to shed over 65 paisas to Rs 16.65 in the late morning session 
as compared to opening rates of Rs 17.35, dealers said.The 100-Index
was down by 18.90 points to 1060.74 half an hour before the close of 
the first trading session.-APP

PM directs rate cuts on saving schemes
Ihtashamul Haque

ISLAMABAD, March 24: Prime Minister Nawaz Sharif has directed the 
officials of ministry of finance to manage saving of Rs40 billion 
by reducing interest rates on various national saving schemes and 
mark-up rate of the nationalized commercial banks (NCBs) and the 
Development Financial Institutions (DFIs).
Informed sources said here on Wednesday that the prime minister 
wanted to undertake a number of development projects such as more 
motorways and highways, yellow taxi and yellow tractor schemes for 
which he wants ministry of finance to arrange additional resources.
Under the present circumstance when it is getting more difficult to 
have additional funds, specially due to the poor performance of the 
Central Board of Revenue (CBR), the PM felt that there was a need 
to save on financial charges by reducing the rate of interest in 
the prize bonds schemes and through reduction in the mark up rate 
of the banks.
Sources said Nawaz Sharif believes government can save funds if it 
lowers the mark-up rates by 2 to 3 per cent. By doing so, said his 
advisors, the government budget deficit will also be narrowed.
The PM chaired a high level meeting on Wednesday and discussed 
various issues with the participants including mobilization of Rs40 
billion from different sources. The meeting was attended by 
Minister for Finance Ishaq Dar, Secretary Finance Khalid Javed and 
Special Secretary Finance Ghafoor Mirza. Sources said the issue of 
power tariffs also came under discussion.
Dar informed the premier that there would be violation of the 
agreement with the IMF, in case WAPDA did not increase 11 per cent 
tariffs as earlier planned. In an unexpected move WAPDA officials 
have already withdrawn their reference from the National Electric 
Power Development Authority (NEPRA) to seek the proposed tariff 
increase. They believe they can remove their deficit by reducing 
the electricity charges as it will help in attracting more 
Sources said premier wanted a detailed study to be conducted for 
ascertaining whether WAPDA needs to reduce or increase the power 
charges. And if it can remove its funding difficulties by 
reduction, then the donor agencies especially the World Bank and 
the IMF must be taken into confidence.
Sources said, the minister for finance also briefed the Prime 
Minister about the proposed rescheduling of $850 million loans from 
the creditors of the London Club. He expressed hopes that he may 
not have to travel to London for the meeting and that a number of 
creditors including the Citibank, ANZ Grindlays are directing their 
representatives in Pakistan to organize this meeting in Islamabad.

SBP advice: Banks to upgrade treasury depts

KARACHI, March 24: State Bank of Pakistan (SBP) has asked all banks 
to upgrade their treasury departments up to international standard, 
banking sources said.
In a circular (F.E. No. 2) issued late Wednesday, it directed the 
banks that the foreign exchange transactions must be reported to 
the Central Bank in standardised form.
Banking sources said the circular follows reports of hidden 
transactions in foreign exchange by some leading nationalised and 
private banks operating in the country. 'Circular's objective is to 
bring transparency in transactions,' said a banking source.
According to banking sources, the circular that could not be 
obtained from SBP immediately will reduce risk of losses to banks 
due to unreported transactions in foreign exchange. 'As compared 
to past practice, the balance sheet will be clear at the end of the 
day,' observed treasury official of a leading bank.
He said that leading foreign banks have standardised form of 
reporting foreign exchange transactions. In case of misreporting, 
the irregularities in foreign exchange transactions would be 
detected the very next day while in the past it use to take months, 
said banking sources.
It is estimated that the banks here conduct transactions in foreign 
exchange to the tune of $ 80 million daily.-APP

New energy policy soon: Gulfraz
By Our Correspondent

ISLAMABAD, Mar 24: A new energy policy aimed at price stability and 
acceleration in oil and gas exploration activity will be announced 
soon, said Dr Gulfraz Ahmad, federal secretary petroleum and 
natural resources.
Addressing a seminar here on Wednesday on "Technological 
Development in Seismic Data Acquisition in Pakistan", Dr Gulfraz 
said recommendations have been sought on new energy policy from the 
recently constituted working groups on joint ventures for up and 
down stream exploration prospects.
He added that 16 gas discoveries have been made during 1998. The 
government is interested in developing these gas fields at the 
earliest to increase energy availability, he added.
Gulfraz pointed out efforts being made for affording gas sector a 
dominant-source status with its share increasing in the energy 
sector by 45 per cent during the next five years. Toward the end of 
next decade, he said, this share would be no less than 50 per cent.
He stressed the need for seismic survey of the offshore areas where 
there are more prospects of oil and gas discoveries.
French envoy to Pakistan, Yannik Gerard, while inaugurating the 
seminar, said his government would like the private French 
companies to widen the scope of their activity in Pakistan.

Federal divisible pool: NWFP share may drop by Rs1.62bn
By Intikhab Amir

PESHAWAR, March 23: In the wake of further downward revision of the 
total revenue estimates by the federal government, the NWFP 
government is expecting to receive Rs 1.62 billion less than the 
budgeted amount from the federal divisible pool, official sources 
said here on Monday.
"The reduction in receipts from the divisible pool would surely hit 
the projected revenue expenditure for the current financial year, 
which may force the provincial government to introduce substantial 
cut on its non-salaried expenses in current fiscal," said the 
When the NWFP finance department's secretary, Ijaz Qureshi was 
contacted at his office on Monday to confirm information about the 
financial squeeze, he did not respond. However, financial planners 
of the provincial government are also foreseeing a substantial cut 
on the non-developmental expenditure side in the backdrop of 
lowering down of revenue collection target by the Central Board 
of Revenue.
A considerable shortfall recorded on account of customs duty and a 
less than expected GDP growth rate forced the CBR to revise the 
revenue collection target from Rs 354.5 bn to Rs 318 bn. "With the 
over all reduction of Rs 36.5 bn in the size of the total divisible 
pool, the NWFP's share in the shortfall stands at Rs 1.62 bn," said 
an official source close to the chief minister Sardar Mehtab Ahmed 
Originally, the provincial government in its budget for the current 
fiscal had projected a sum of Rs 16018.598 m to be received as 
provincial share from the federal divisible pool.
The reduction in releases from the federal divisible pool would 
reduce the province's share to just over Rs 14.40 bn. However, the 
development planners of the province, when contacted by this scribe, 
didn't see any foreseeable threat to the NWFP's current fiscal's 
development programme.
"We kept the provincial annual development budget at a rational 
level keeping in view the financial health of the province," said a 
well placed official source in the Planning, Environment and 
Development department, NWFP, adding that " reduction in the 
province's share from the divisible pool would make the provincial 
government to further cut down its expenses on the non-
developmental side including POL charges, utility charges, 
stationary and the like".

Cottage industry wants raise in exemption limit

FAISALABAD, March 23: Chairman of Cottage Industries Association 
(CIA), Sheikh Muhammad Haneef, warned that if concrete measures are 
not adopted to reduce the problem ridden cottage industry, it will 
collapse resulting unemployment, besides, the loans granted for 
self-employment scheme would go waste.
Talking to newsmen here on Monday, the CIA chief, pointed out that 
under the self-employment scheme of the prime minister, a number of 
cottage industries have cropped up and hundreds of skilled labour 
have been employed in this sector.
He said the sales and central excise duty is exempted only in case 
of those industries which have a total value of Rs 200,000 which is 
not judicious for the flourishing of this sector.
He further pointed out that although the government had enhanced 
the sale of turnover of cottage industry from Rs 2,00,000 to Rs 
3,00,000 yet this ceiling is inadequate. Under such parameters, the 
cottage industry neither can flourish nor can survive as it is not 
viable for the owners of the cottage industry to operate their 
units, he added.
He claimed that if the cottage industry was not exempted at least 
for the sale of Rs one million, this sector would automatically 
collapse rendering thousands of workers jobless and would also make 
the chances of loan recovery bleak under the Self Employment 
He urged the government to fix the investment of the cottage 
industry for at least Rs 1 million exempted from sales and turnover 
taxes. Such incentive would encourage the small investors to invest 
in this sector and they can run their units on viable basis, 
besides, contributing huge amount in the shape of income tax in the 
government treasury.

$900m debt rescheduling: Banks to respond tomorrow  
Haris Anwar

KARACHI, March 22: The foreign banks will respond to the 
government's package to reschedule about $900 million short-to-
medium term commercial debt by 24th of March, foreign bankers said 
on Monday.
"We have received the offer form the government side, and we are 
going to respond to them by 24th of March", said sources in the 
foreign bank. "I think the offer is good, and all banks are 
assessing their relative positions", they added. They further 
said that terms and conditions of this commercial debt 
rescheduling would have to conform to the comparability clause of 
the Paris Club.
Pakistan negotiated $3.3 billion official debt with the Paris Club 
of bilateral creditors on Jan 30 this year. The comparability 
clause in the agreement makes it mandatory to the government to 
give equal treatment to all commercial lenders.
According to these sources, the government has sought to reschedule 
about $ 575 million in the short-term and trade related loans, 
while about $ 300 million are in the category of medium-term loans.
"Every thing which is borrowed for the one year is defined as 
short-term, while the lending up to 12 years comes under the 
category of medium-term loans", sources said.
The government has hired Warburg Dellen Reid, a merchant bankers, 
as its advisor on the rescheduling of the commercial debt, which 
has reportedly done the classification of the different loans.
Foreign bankers further said the Eurobonds were not part of the 
amount being offered by the government for rescheduling.
"They are going to treat this issue separately as yet this has not 
been decided whether this sovereign debt will be rescheduled or 
not", said a head of the foreign bank.
Government is in dilemma on the issue of rescheduling over $700 
million in the Eurobonds issues, which financial experts say, if 
rescheduled, would severely curtail Pakistan's ability to borrow 
from the international markets.

PTCL urges govt to cut excise duty on local calls

KARACHI, March 22: Pakistan Telecommunication Company Limited 
(PTCL) has urged the government to reduce the excise duty on local 
call from the current 25 percent to 15 or 17 percent.
This was stated by Chairman, PTCL, Nasim S. Mirza in a meeting with 
Karachi Chamber of Com-merce and Industry (KCCI) on Monday.
"In my opinion, the excise duty should not exceed 10 per cent," he 
said adding "we are fighting with the government on this issue to 
even consider the case of slashing the duty phase-wise to 15 or 17 
per cent."
He said the company had succeeded in persuading the government to 
cut the excise duty to 25 per cent from 40 per cent in the past. 
Besides, PTCL intends to cut rate on long distance calls in dollar 
terms particularly for USA to 45 per cent in the next three years 
as the company has already reduced the rates by 38-40 per cent. For 
US the rate of call is currently 1.20 dollar per minute as against 
two dollars per minute a year back.
He dispelled the impression that the PTCL's tariffs are higher as 
compared to other countries. He said," our rates are lowest in the 
world and even in the region."
Nasim Mirza said that the PTCL aims to expand its Internet service 
to 50,000 by June 30, 1999. However, the company is providing the 
service to 12,000 users as against the actual capacity of 8,000 
that is why we receive complaints from consumers on slow access to 
On a point raised by KCCI President regarding 280,000 pending 
applications for telephone connection, he did not agree with this 
saying that only 28,000 applications were pending in Karachi. 
"Efforts are underway to reduce by at least 50 per cent by June 
this year," he assured.
He said PTCL is actively considering to offer competitive rates for 
the mobile phone service, which is intended to be launched by end 
of this year.
Mirza said Goldman Sach, the financial advisor of PTCL, is striving 
to find strategic investors for off-loading of 26 per cent stakes 
so that the PTCL could be privatized by June this year.
The PTCL chief said that the share capital of the Telecom Company 
is Rs51 billion and it earns $400 million per annum from business 
and services to callers from outside.
He said the Karachi region will be completely be replaced to 
digital system from the current analog system in the next four 

Higher rate for growers, relief to industries
Faraz Hashmi

ISLAMABAD, March 20: Water and Power Development Authority has 
decided to reduce electricity tariffs for all industrial consumers 
and also for domestic consumers using more than 300 units of 
electricity per month, as an incentive to boost sliding local 
Wapda officials on Saturday withdrew their petition seeking 11 per 
cent increase in power tariffs and submitted an amended one before 
the National Electric Power Regulatory Authority, (Nepra).
Nepra commission headed by vice-chairman Sardar Sharif and a 
houseful of representatives of various consumer groups were 
surprised, when Wapda's general manager finance, Javed Nizam, 
announced that they were withdrawing the petition for increase and 
instead submitting another one, seeking rationalization of existing 
The new tariff structure has been framed with a view to sale 
surplus power by encouraging consumers to use more electricity, Mr 
Nizam later told Dawn.
The new package would give relief only to those domestic consumers 
using more than 300 units of electricity per month. The people 
consuming 301 to 1000 units per month would have to pay at the rate 
of Rs4.60 per unit instead of existing Rs5.07 a unit.
The consumers falling in the category of those using 1000 to 4000 
units a month would get a relief of Rs0.79 on each unit as the per 
unit rate for them is being reduced from Rs6.34 to Rs5.55.
The people using airconditioners have been given an incentive to 
use electricity and pay their bills instead of indulging in meter 
tampering or power theft, another Wapda official said.
The industrial consumers, falling in B-1 category, using 40kw of 
electricity a month, under the proposed tariffs would get a relief 
of Rs1.6 at each unit consumed. In this case per unit rate is being 
decreased from Rs6.6 to Rs5.0.
The B-2 category of industrial consumers, using 41kw to 600kw a 
month, would get a relief of Rs0.86 a unit. For these consumers the 
rates are being revised from Rs5.16 a unit to Rs4.30 a unit.
The consumers using up to 5000kw of electricity a month are being 
given a relief of Rs0.82 per unit. The Wapda was charging Rs4.02 a 
unit from this category, which is now being reduced to Rs3.20.
All the consumers above the consumption mark of 5000kw a month will 
get a relief of Rs0.69 a unit.
Agriculture consumers are also being given relief but the flat 
rates are being revised slightly upward. The flat rates in Punjab 
and Sindh are being increased from Rs2.07 to Rs3.60 per unit. While 
the rates for NWFP and Balochistan are being increased from Rs1.99 
to Rs2.91.
The projections made by Wapda officials, showed the proposed 
rationalization of tariffs would result in a net increase of 6.5 
per cent in the revenues.

The Nepra commission hearing Wapda's petition for the last one week 
at the Power Distribution Academy adjourned the proceedings till 
Public hearing would be held on Monday, as per the original 
schedule, announced Sardar Sharif directing the Wapda officials to 
provide evidence in support of their amended petition.
The hearing on Saturday, was twice adjourned as the Wapda officials 
pursuing the case wanted to get a confirmation from Chairman 
Zulfiqar Ali Khan, who was on his way to Pasni.

Back to the top
Monumental proof
Ardeshir Cowasjee

ONE is frequently accosted by assorted namby-pambys who, though 
they may be hefty hulks, are afraid of their own shadows. After 
looking over their left shoulder, then their right, they ask "Mulk 
ko kia horaha hai?" What is to be done? No investment, no business, 
corruption everywhere. What will become of Karachi? How will we 
live here? What will become of us all?
They are told that there are only two things they can do: stand up 
and fight the corruption and evil; or moan and groan, wallow in 
pity for their plight and that of the country, and then die of 
frustration. The usual answer is that they neither have the 
strength nor the ability to stand up and be counted. That being the 
case, the next suggestion is that they remain safely in the 
background and discreetly give of their time or money to further 
the fight for the betterment of Karachi's environment by supporting 
some non-profit organization. At this stage they sidle away, never 
to be heard from again.
The authorities concerned with the planning and development of the 
city, and with the control of buildings - the KDA, the KBCA, the 
KMC, and all the Cantonment Boards - are riddled through and 
through with corrupt officers and men. More often than not, the 
concerned departments of the Government of Sindh, Housing & Town 
Planning and Local Bodies which control these authorities, are 
headed by corrupt ministers and secretaries.
The corrupt have no fear, for they know that even if they are 
entrapped and an enquiry held and they are found to be guilty and 
suspended, they will soon walk back, or walk into an even better 
job. It is indeed difficult to fight and win.
Case in point : To appease public clamour, the corrupt and now 
absconding former PPP Chief Minister of Sindh, Abdullah Shah, 
suspended 29 officers of the Karachi Building Control Authority 
(KBCA) and appointed the then Secretary of Local Government, Nur 
Ahmad Shah, to hold an enquiry into their conduct.
Nur Ahmad 's integrity is beyond question. By the time he had 
completed his enquiry, the PPP government and Abdullah Shah had 
been shot out. His report was submitted to Mumtaz Bhutto's 
caretaker government. Fourteen were acquitted for want of 
sufficient evidence and fifteen dealt with thus:
"High-rises are not raised overnight in a manner which would escape 
the notice of the accused officials, nor can they remain concealed. 
Their mushroom and ill-planned growth bears testimony to the KBCA's 
impotence. The proof of the inefficiency and ineptitude and 
dereliction of duty of the officials of the KBCA is literally 
monumental. The accused officials are squarely responsible and it 
is due to either their criminal negligence and their dereliction in 
the performance of their duties, or to their complicity in the 
matters involved. In either case, they are liable for punishment 
under the E&D Rules. Keeping in view the gravity of the menace and 
its ramifications, determined and deterrent action is the only 
answer. I would therefore suggest the imposition of a major penalty 
on the following accused officials : Akhtar Iqbal Usmani, Zaidiul 
Wasti, Rauf Akhtar Farooqui, Iqbal Aziz, Kazi Mumtaz Iqbal, Arshad 
Jamal, Sultan Mohammed Zuberi, Mohammed Bux Qasmi, Anwar Kamal 
Kazmi, Khwaja Badi-uz-Zaman, Munawar Azam, Mohammed Ali Qaimkhani, 
Iqbal-ur-Rahman, Abdul Waheed, Abdul Sattar Pasha."
Come the equally corrupt PML/MQM government and on May 12 1997, 
fourteen of the guilty fifteen, the exception being Rauf Akhtar 
Farooqui, were reinstated in their original positions.
Come Governor's rule and (don't fall off your chairs), Secretary of 
Housing and Town Planning Faisal Saud, backed by Chief Secretary 
Salik Nazir, recommended that Farooqui be elevated and appointed as 
Director General of the Malir Development Authority. This has been 
But all is not lost. The corrupt reinstated, possibly now more 
corrupt than ever, are once again being investigated. There is some 
hope that the people may yet gain.
Now to a manifested gain. Good Chief Justice of Sindh Kamal Mansoor 
Alam, realizing the lack of confidence in the courts and the 
frustration of the citizens of this city who have filed petitions 
against illegal constructions, the desecration of parks and open 
spaces, has appointed a 'Green Bench' comprising two fearless 
judges, Justices Rana Baghwandas and Sabihuddin Ahmad. He has 
ordered it to sit on one day each week to hear cases involving the 
environment. This bench has successfully and expeditiously 
dispensed justice. But the builders mafia is very powerful, and 
being exceedingly wealthy have organized a band of lawyers, all 
highly crafty at devising devious means. Their aim is to have their 
cases transferred away from the 'Green Bench' by appointing amongst 
their panel a man who has been associated with one of the two 
'Green' judges, thus hoping to force him to declare 'Not before 
This aspect has now been dealt with by the Bench by its order of 
March 12 1999 (CP-103/99), the relevant portion of which reads: "Mr 
Naimur Rahman [the citizens/petitioners' counsel] has drawn our 
attention to the following observations of the Honourable Supreme 
Court in the case of Federation of Pakistan-vs-Muhammad Akram 
Shaikh (PLD 1989 SC 689) which reads as under : 'It may however, be 

mentioned that there can be exceptions to this practice. A judge 
can always distinguish cases where any of the parties is resorting 
to a device, with an ulterior motive, so as to prevent him from 
sitting on the Bench dealing with a particular case, for example by 
engaging a counsel who is barred from appearing before him. He may 
not disqualify himself in such cases'."
In CP 103/99, the two 'Green' judges found that "Mr Zia Makhdoom 
appears to have been brought for the purpose of getting this case 
transferred to another Bench," and decided to hear the petition.
In another case, the 'Green Bench' has unequivocally ordered the 
complete demolition of an unauthorised structure being erected on 
Plot GRE 395/3 in Garden East. For four years, the citizens of the 
area actively and volubly protested against the construction of a 
basement-plus-ground-plus-five storeys building covering the entire 
plot, quite contrary to the approved plan permitting only the 
construction of ground-plus-one covering only one-third of the 
plot. In 1995, in collusion with some corrupt KBCA officials, the 
owners/builders filed a cover-up suit in the lower courts, and 
obtained a status quo order under cover of which they proceeded to 
excavate and construct the illegal basement and additional floors.
The citizens protested relentlessly and at the end of the year the 
government was forced to seal the project. The owners/builders then 
went to the High Court, filed two frivolous suits, again obtaining 
status quo orders restraining the KBCA from taking any action 
against them, and again resumed construction.
In mid-1997, the citizens and the NGO, SHEHRI, went to court (CP-
1297/97), represented by Barrister Mohammed Gilbert Naim-ur-Rahman, 
and in December the status quo order was vacated. Finally, this 
month, the Green Bench has ordered demolition and on March 15, the 
KBCA, unable to wriggle out of this one, began demolishing the 
offending structure. But, for reasons which the KBCA is unable to 
explain, the demolition process was suspended after two days. The 
harassed citizens are not letting go, they are pressing on and will 
probably have to file contempt proceedings.
Quite a few buildings, subjects of on-going litigation in the 
courts, are likely to be demolished on court orders. However, there 
are builders who hastily construct and sell to an unsuspecting 
naive public uncompleted shops, offices, apartments, etc without 
informing them that there are cases pending in the courts and 
without showing them the interim court orders in the field. Two 
such cases are Glass Towers near the Clifton Bridge and The Plaza 
at the Do Talwar Clifton roundabout. The committee appointed to 
oversee the functioning of the KBCA has moved to make it obligatory 
upon the Authority to inform the public of the status of litigation 
in such cases.
Governor Moinuddin Haider has done much to help better the 
environment of Karachi. He has renotified the Oversee Committee of 
the KBCA, giving it more teeth. He has reconstituted the dormant 
governing body of the KDA making it people-representative, 
appointing thereon a civil servant, a truly civil man in the true 
sense of the word, Tasneem Ahmad Siddiqui, who chose to move away 
from the post of Chef Secretary of Sindh and remain in charge of 
the 'kachchi abadis' where he can and is doing good for the poor.

The colour prejudice
By Irfan Husain

IN an essay in Time magazine a few weeks ago, a Hong Kong-based 
Indian writer commented on the fact that in most comic strips in 
Hong Kong and Japan, the characters were depicted either as 
Caucasian, or with barely discernible oriental features.

He concluded from this that Asians are unconsciously convinced that 
whites are somehow superior. This observation is echoed here in TV 
ads that often use (white) foreigners to promote commercial 
products. Even when local models are used, they tend to be fair 
complexioned more often than not. The matrimonial columns in Sunday 
papers are full of requests for 'fair' - or at a minimum, 
'wheatish' coloured - life-partners. Urdu publications specially 
carry numerous ads for creams that promise to lighten the colour of 
your skin. Across the subcontinent, similar biases prevail, perhaps 
even more strongly in India than here.

Considering that the vast majority of South Asians range in 
colouring from light brown to jet-black, this colour consciousness 
strikes foreigners as bizarre. Indeed, our criticism of racism in 
the West rings pretty hollow when we see how prejudiced we are 
ourselves. Our treatment of the hundreds of thousands of 
unfortunates who eke out a miserable existence as sweepers is a 
national disgrace. They live on the margins of Pakistani society, 
condemned by their ancestry: descended from untouchables, many of 
them have converted to Christianity to escape their grim fate, but 
despite the teachings of Islam, we subject them to much the same 
discrimination their fellow untouchables suffer in India.

These prejudices are rooted deep in the sub-continental psyche. 
When the Aryans invaded South Asia, they were confronted by the 
native Dravidians who were shorter and darker. A succession of 
defeats saw the Dravidians pushed into a subservient position that 
was given the ultimate stamp of approval in Hindu dogma that 
accorded them the lowest slot in the social hierarchy. For 
centuries, they have suffered untold humiliations. Unfortunately, 
the Muslims of the subcontinent - many of them descendants of the 
untouchables - imbibed the values and outlook of upper-caste Hindus 
in their treatment of this underclass. These nasty prejudices are 
now very much part of the social order in Pakistan.

When the Aryans were followed centuries later by other invaders 
from Central Asia, Persia and Afghanistan, the existing apartheid 
was reinforced as these nomads, warriors, mercenaries and traders 
were usually lighter in colour than the indigenous population. The 
Greek presence in northern and western India also left a lasting 
impact. Contrary to popular myth, the Greeks had started making 
their presence felt long before Alexander of Macedonia made his 
brief but dramatic foray into Punjab and Sindh. Thus, Indians came 
to perceive the pale northerners and westerners as fierce warriors 
who plundered the subcontinent virtually at will. Myths reinforced 
this image, casting dark people as weak, scheming and evil.

Sanskrit and Hindi words absorbed into Urdu bear testimony to this 
demonising of local populations. 'Anari', the word for 
'incompetent' comes from 'an-ari', i.e., non-Aryan. Earlier, it 
must have had far worse connotations than it does today. 'bhang', 
the commonly used term for 'sweeper' is derived from 'bhang', the 
term for a derivative of marijuana. Obviously, the insult is 
related to the alleged laziness of this unfortunate community.

The broom or 'jharoo' used by sweepers across the subcontinent is a 
short length of twigs or reeds tied together. Its length does not 
permit the person using it to stand straight. It does not take an 
advanced degree in mechanics to tie a stick to the handle in order 
to allow a more comfortable stance. While I have no anthropological 
data to back me up, I suspect upper-caste Hindus deliberately did 
not want sweepers to stand up straight in their presence. Indeed, 
the concept of one's shadow being polluted by an untouchable's is 
very much alive in parts of India today. We have absorbed this 
cruel practice without even thinking about it. None of these habits 
and attitudes are condoned by Islam, but the most pious Muslims 
constantly hold fast to them without thought or reflection.

These biases and prejudices were firmly and perhaps irrevocably set 
when the British established their vast colonial empire. For the 
native elite, only innate superiority could explain how a handful 
of whites from a tiny, distant island could rule over millions of 
subjects. Clearly, their pale skins put them in the ruler category: 
had they been dark, I am sure resistance to their presence would 
have been far fiercer than it actually was. Our ancestors accepted 
them because their ancestors in turn had seen invasions by pale-
skinned soldiers before and had been governed by a succession of 
such foreign armies.

Once British rule was firmly established, our colonial masters were 
widely imitated by the native elite. Their dress, manners, speech 
and customs were aped with varying degrees of accuracy. But above 
all, a pale colouring was seen as the key to success. Fair coloured 
brides became much in demand, and skin bleaches and creams were 
applied assiduously.

As a result of these attitudes, the lives of hundreds of thousands 
are blighted today because they are dark, and reminded of this fact 
every day of their lives. Opportunities for a 'good' marriage 
decline in inverse proportion to the skin colour. Curiously, this 
is a more important matrimonial consideration for girls than it is 
for young men. Girls are not permitted to play outdoors for fear of 
a tan. Our beaches are full of women huddled together fully dressed 
under any shade they can find lest the sun darkens their skins.

These customs would have been hilarious had it not been for the 
pain they cause. Educated mothers can be heard scolding little 
girls across the country to stay out of the sun; they are all too 
aware of the hard realities of the marriage market. Interestingly, 
this is a largely middle-class, urban phenomenon as farmers' 
daughters, wives and sisters help out under the blazing sun when 
required. While this is a rich field of study for social 
scientists, I am not aware of any research done in this area.

It is ironic that when the Western world is gradually shedding at 
least the overt expression of racial prejudice, we have not even 
begun to acknowledge the presence of an unspoken apartheid in our 

Pakistan crush India by 143 runs
JAIPUR (India), March 24: Spectators hurled plastic water bottles 
on to the outfield as India stumbled to a 143-run defeat by 
Pakistan in the tri-nation limited overs series on Wednesday.

Left-handed opener Saeed Anwar smashed 95 and Inzamam-ul-Haq made 
43 as Pakistan piled up 278-9 and then shot India out for a paltry 
135 before 25,000 stunned fans at the Sawai Man Singh Stadium here.
Pakistan did not miss spin king Saqlain Mushtaq, serving a one-
match suspension, as young seamer Abdur Razzaq and off-spinner 
Arshad Khan combined to wreck India in just 36.1 overs.
Razzaq, who replaced Saqlain, dealt telling blows with the wickets 
of skipper Mohammad Azharuddin and Vinod Kambli in his first over 
after coming on as first-change bowler.
Arshad, the lone specialist spinner in the side, finished with 3-22 
including the wickets of all-rounder Ajit Agarkar and newcomer 
Gyanendra Pandey in the space of three deliveries.
Ajay Jadeja, opening the innings in place of the injured Sachin 
Tendulkar, toiled in vain for India to make 61 before being ninth 
Pakistan, with two wins from successive matches, will ensure a 
place in the final of the three-nation tournament if they defeat 
Sri Lanka in the return match at Visakhapatnam on Saturday.
Akram, who led Pakistan to victory in the inaugural Asian Test 
Championship earlier this month, hoped his side would sweep the 
one-day competition also.
"We are playing very good cricket, to the best of our potential," 
Akram said. "It will be very hard to beat us if we continue to 
perform like this.
"I was a bit worried at the absence of Saqlain, but Anwar raised 
our spirits with his great innings. For me, he is the best opener 
in the world."
Azharuddin said the fall of regular wickets did India in. "You 
need to have a big stand chasing a score like this," he said. 
"It was not a particularly good wicket to bat on."
Left-handed opener Anwar hit 10 boundaries and a six on his way to 
becoming the third Pakistani after current coach Javed Miandad and 
Salim Malik to cross the 6,000-run mark in limited-overs cricket.
Pakistan were headed for a bigger total when they reached 200-2 in 
the 38th over, but India hit back by claiming seven wickets for 76 
Leg-spinner Anil Kumble grabbed four for 53 to compensate for 
lacklustre bowling from young seamer Agarkar, who was hammered for 
73 runs in his eight overs.
Anwar, dropped on seven by Rahul Dravid, and his opening partner 
Shahid Afridi, who put on 148 for the first wicket against Sri 
Lanka last Friday, rattled up 75 in just the 10th over.
Afridi, who smashed 38 off 33 balls, hit five boundaries in 
Kumble's first over before the angry leg-spinner had him caught at 
mid-off in his second over.
Pakistan, who were coasting along at 150-1 in the 25th over, were 
stopped in their tracks by steady spin bowling from Chopra and 
debutant left-armer Pandey.
Pandey gave away just 27 runs in his first eight overs, while 
Chopra bowled unchanged to finish with 1-42 from 10 overs.
Anwar was set for his 16th one-day century when he was caught 
behind by Mongia to give part-time spinner Dravid his first 
international wicket.
INDIA MAKE TWO CHANGES: Meanwhile, India have recalled all-rounder 
Robin Singh and included uncapped Delhi batsman Virendra Sehwag in 
a 14-man squad for their next match in the series against Sri Lanka 
in Pune on March 30. They replace Vinod Kambli and all-rounder 
Laxmi Ratan Shukla.
Squad: Mohammad Azharuddin (captain), Saurav Ganguly, Rahul Dravid, 
Ajay Jadeja, Robin Singh, Nikhil Chopra, Nayan Mongia, Anil Kumble, 
Javagal Srinath, Ajit Agarkar, Gyanendra Pandey, Amay Khurasia, 
Virendra Sehwag.-Reuters/AFP

Pakistan Greens trounce India; PM gives away trophies

ISLAMABAD, March 23: It proved a mismatch as Pakistan Greens, 
having already retained the title, outclassed India 58-31 in the 
most-awaited last league clash of the 3rd Prime Minister of 
Pakistan Kabaddi Tournament at Jinnah Stadium on Tuesday.

Prime Minister Muhammad Nawaz Sharif gave away ABL winner's trophy 
to Pakistan Greens captain Umer Hayat Gill and prizes to players 
from all the four competing teams.
Pakistan Greens conceded a 1-3 lead at the outset but quickly 
settled down to business to the delight of a large crowd, levelling 
up at 5-5 and then going ahead 8-7 before taking a commanding lead 
at 16-8.
India, who finished at the bottom of points table, never recovered 
from that point onwards as green-short Pakistanis made sprightly 
raids into the opponent territory and put up sturdy defence in 
their own half to establish their supremacy.
Pakistanis led 29-17 at half time and further widened their lead to 
emerge a comfortable winner for their third successive victory (six 
points overall) in the tournament.
Prime Minister Muhammad Nawaz Sharif, flanked by a host of federal 
ministers and other dignitaries, awarded the "best kabadder" trophy 
to Pakistan Greens raider (sahi) Malik Mohammad Iqbal.
Malik Iqbal was not even once caught in the entire three matches of 
the tournament of the circle style kabaddi. On Tuesday too, he 
scored nine points.
Vice captain Muhammad Akram also had nine points while fellow 
raider Abdul Khaliq Tony had seven points to his credit. Defenders 
(japhis) Ghulam Abbas Butt and Ishtiaq Wahla aggregated eight and 
six points respectively.
Raider Muhammad Dilwar Khan scored eight points while fellow 
raiders Jagjit Singh and Rajwinder Singh had six points each as 
raiders for India.
Pakistan Whites, with three points, received the runners- up trophy 
while England took third position with two points. India had just 
one point awarded to them on the opening day when field jury 
declared their match against Pakistan Whites a draw after a protest 
though the second string Pakistan team had initially beaten the 
visitors 44-42.
Indians again briefly disputed a point awarded by Pakistan's umpire 
Malik Muhammad Sarwar to Greens, taking the plea that five seconds 
out of the 30 seconds of that particular kabaddi were still to go. 
However the Indians backed out and accepted the umpire's verdict 
moments later.
Prime Minister Muhammad Nawaz Sharif was warmly received on 
arriving at the Jinnah Stadium by Federal Minister for Culture and 
Sports, Mushahid Hussain Sayed, President Pakistan Kabaddi 
Federation and Speaker Punjab Assembly, Chaudhary Pervaiz Elahi, 
President World Kabaddi Federation and Secretary Pakistan Kabaddi 
Federation, Ali Muhammad Khwaja besides other officials.
Surprise return of Shahbaz Jr in Pakistan squad
A. Majid Khan

KARACHI, March 22: Olympian and World Cupper Mohammad Shahbaz 
junior, out of top flight competition for more than a year through 
injuries, staged a surprising return to the 16-member Pakistan team 
announced here on Monday afternoon for the Azlan Shah Hockey 
Tournament, scheduled in the Malaysian capital Kuala Lumpur from 
April 2.
The inclusion of an apparently unfit Mohammad Shahbaz is the only 
change in the Pakistan squad which won the nine-Test series against 
India by 6-3 last month. Mohammad Shahbaz skipped the Commonwealth 
Games, Bangkok Asian Games, Champions Trophy and also the last 
month Pakistan-India series before he was named among the 29 
probables for selection of Pakistan team for the six-nation 
Champions Trophy to be contested on the league basis. Dr Atif 
Bashir, under whose leadership Pakistan clinched Test series 
against India, has been retained as captain . Mohammad Sarwar will 
remain as his deputy.
The 16-member team, which consists of two goal-keepers, three 
fullbacks, four halfbacks and seven forwards, was announced by 
Pakistan Hockey Federation Secretary Col (Rtd ) Mudassar Asghar at 
the press briefing after conclusion of 90-minute trials here at the 
Hockey Club of Pakistan.
Of the 29 probables, right-winger Mohammad Irfan and fullback and 
Tariq Imran, had already left the camp two days ago back due to a 
fitness problem, while goal-keeper Hamid Ali has developed muscle 
problem and did not appear in the trials in which in all 26 were 
watched by the selection committee.
Those not selected in the team will be standbys and the squad will 
continue its practice before it leaves for Kuala Lumpur on March 
Mir Zafarullah Khan Jamali, chairman of the three-member selection 
committee, could not come, while other two selectors Dr Tariq Aziz 
and Hanif Khan watched the trials.
PHF President Akhtar Rasool Chaudhry and federation secretary 
Mudassar Asghar flew here on Monday and after watching the trials 
attended the selection committee alongwith with the co-opted member 
Khawaja Zakauddin and it finalised the squad in hardly 15 minutes.
Addressing the mediamen, Akhtar Rasool Chaudhry said we have 
selected the best team for the Azlan Shah Cup .After winning the 
Test series against India our goal is to win the 6-nation 
tournament at Kuala Lumpur as Pakistan badly needs victory before 
the Champions Trophy , scheduled in Brisbane, Australia, in June.
He made it quite clear that present squad is only for the Azlan 
Shah Cup as we would hold trails for selection of team for the 
Brisbane Champions Trophy.
Replying to a question about the complete match fitness of Mohammad 
Shahbaz, who played with knee cap, as he was still slightly limping 
during today's trials, reduced to 90 minutes from normally 120 
minutes held in three sessions, the PHF president replied that the 
Olympian inside-left's right knee had been operated upon about five 
months back. Shahbaz is improving and his inclusion merited as he 
is seasoned player, he stressed.

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