------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 30 January 1999 Issue : 05/05 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + IMF tells Pakistan how to solve problems + Lifting of curbs linked with CTBT signing: US diplomat + Ex-CM says he will challenge PA session + Pakistan can't be party in Benazir case: Swiss judges + Independent agency should investigate, say counsel + Aitzaz poses 20 questions to Nawaz, Saif + MQM urges COAS to take notice of govt 'conspiracies' + MQM chief to visit Germany, Belgium soon + No violation of Pakistan air space, says US + Talbott to hold talks on P-5 benchmarks + National interests uppermost: Kanju + Power theft Govt defers plan to set up mly courts + Sindh refuses to pay Rs4.5bn to WAPDA + Pakistan urged to sever trade ties with India --------------------------------- BUSINESS & ECONOMY + Worst part of crisis over: Dar FCAs to stay frozen + LHC restores FCAs with immediate effect + $1.4bn loans rolled-over by donors, says Dar + Dar briefs Paris Club + Agreement for mini-truck production signed + KESC bonds NCBs may emerge as main buyers + Import duty on spares for 15 IPPs exempted + Exercises on ST implementation suspended + US firm to invest $970m in two hydel projects + Direct tax collection by Southern Region up 17pc + Ten leading underwriters respond to EoI bid + Agreement signed for power generation + Bodies formed to settle sales tax refund claims + Industry suffering Rs8.8m loss per hour + IMF report triggers heavy foreign selling in stocks -------------------------------------- EDITORIALS & FEATURES + What has changed? By Ardeshir Cowasjee + Here be dragons By Irfan Hussain ----------- SPORTS + Malik and Inzamam save Pakistan from likely defeat + Youhana, Moin hit gutsy half centuries as Pakistan make 238 + Saqlain puts the Test on a knife-edge with a 5-wkt haul

IMF tells Pakistan how to solve problems
By Shaheen Sehbai
WASHINGTON, Jan 28: The IMF released details of critical weaknesses 
in Pakistan economy and how its Executive Board wanted them 
addressed by Islamabad to ensure continuation of the restored IMF 
The IMF officially issued a Public Information Notice (PIN) on 
Pakistan saying "this action is intended to strengthen IMF 
surveillance over the economic policies of member countries by 
increasing the transparency of the IMF's assessment of these 
The details contained in the PIN give a rare view of how the IMF 
directors viewed various problems faced by Pakistan and what 
commitments had been made to keep the programme intact.
The discussions between directors cover all major problem areas and 
include specific suggestions and targets set for Pakistan, most of 
which was part of the policy framework paper, already issued by 
Pakistan and IMF for public scrutiny. But the views of the 
directors give a better picture of how the discussions went in the 
board meeting which finally approved restoration of the ESAF/EFF 
programme but allowed only the very minimum amount of funds out of 
that programme  a paltry $75 million.
The Directors expressed concern in particular about the dependence 
of the balance of payments on highly market sensitive financing; 
the State Bank of Pakistan's large uncovered forward exchange 
position; increasing dependence of budget revenues on receipts from 
petroleum surcharges, while the domestic tax base remained narrow; 
the financial difficulties of WAPDA and the high level of non-
performing loans in the banking system, it said.
Furthermore, several Directors stressed that avoidance of slippages 
was particularly important in light of the need to make a decisive 
break from the past record of stop-and-go policies and establishing 
a good track record, it noted. To this end, they emphasized the 
crucial importance of strengthening the revenue base, and endorsed 
the planned extension of the GST to the services sector, petroleum 
products, electricity, and agricultural inputs, and also the 
strengthening of tax administration.
They called for expeditious development of a package of measures 
that will steadily raise the revenue from agricultural income 
taxation to levels that are comparable to other countries with a 
large agricultural sector.
The directors observed that budgetary reform in Pakistan assumes 
particular importance, given its limited revenue base and low tax 
buoyancy, on the one hand, and the sizeable social needs and 
infrastructure expenditure demands on the other. To this end, they 
emphasized the crucial importance of strengthening the revenue 
base, and endorsed the planned extension of the GST to the services 
sector, petroleum products, electricity, and agricultural inputs, 
and also the strengthening of tax administration.
They emphasized that, in order to ease constraints on exchange rate 
policy and reduce the burden on monetary policy in maintaining 
external stability. It is essential to resolve the problem of the 
still large stock of foreign currency deposits, without creating 
large contingent liabilities in the medium term that would be 
difficult to manage. To this end, they urged the authorities to 
finalize detailed restructuring plans for WAPDA and the Karachi 
Electricity Supply Corporation expeditiously, and for WAPDA to 
implement the tariff decision of the National Electric Power 
Regulatory Authority, and to formulate a comprehensive plan for the 
elimination of outstanding stocks of payables and receivables by 
March 1999.
With regard to privatization, Directors encouraged the authorities 
to press ahead with all necessary steps, most importantly with 
enhancing the financial integrity of public sector financial 
institutions, so as to allow a reacceleration of the privatization 
process as conditions improve. With regard to banking reform, they 
emphasized the importance of continued efforts, including 
strengthening of prudential regulations.
Lifting of curbs linked with CTBT signing: US diplomat
Staff Correspondent

HYDERABAD, Jan 29: The Public Affairs Officer, United States 
Information Service (USIS), Dr Joseph Jerry Brenning, has said that 
the lifting of sanctions against Pakistan was closely linked with 
the signing of CTBT and added that Pakistan was required to sign 
the treaty within one year.
He, however, denied that the US was trying to impose its will on 
Pakistan or India. He said that the question of giving dictations 
did not arise, as there was great difference in the superpower of 
50s and 90s.
He said the US was not oblivious to the security needs of Pakistan 
but it was deeply concerned about the nuclear proliferation and 
added that America believed that both India and Pakistan should 
resolve their problems through discussions including the Kashmir 
Ex-CM says he will challenge PA session
Staff Correspondent

KARACHI, Jan 29: Former chief minister Liaquat Ali Jatoi claimed 
that he was still Leader of the House and vowed to challenge the 
convening of the requisitioned session of the provincial assembly.
"I am the suspended chief minister and no confidence cannot be 
taken up unless I am heard by the House," Mr Jatoi told newsmen 
after the proceedings. Mr Jatoi did not attend the session but was 
still occupying the chamber of leader of the house.
Mr Jatoi's comments came as a surprise to newsmen because the 
government announcement had stated that the provincial government 
had been dismissed.-APP.

Pakistan can't be party in Benazir case: Swiss judges

LAUSANNE (Switzerland) Jan 25: A Swiss federal court judge ruled 
that Pakistan does not qualify as a civil party in an investigation 
into former Pakistani premier Benazir Bhutto, charged with money 
laundering related to alleged kickbacks from two Swiss firms. Swiss 
supreme court judges rejected an appeal by Islamabad authorities.
Islamabad accuses the former premier and current opposition leader 
of stealing millions of dollars from state coffers and stashing the 
money abroad.
Bhutto, who was sacked as premier in November 1996 on charges of 
corruption and misrule, has consistently denied any wrongdoing and 
has accused Pakistani authorities of deliberately trying to frame 
her and her family.
The federal court, Switzerland's highest court confirmed this 
decision, arguing that by definition, a foreign country can not 
defend the constitutional rights of its citizens and therefore can 
not reproach the public prosecutor's office for arbitrarily denying 
it the right to be a civil party.

Independent agency should investigate, say counsel
By Ashraf Mumtaz
LAHORE, Jan 23: Chief Ehtesab Commissioner Justice Ghulam Mujaddid 
Mirza heard submissions from two senior counsels about which 
records should be summoned from which departments in references 
against Prime Minister Nawaz Sharif, Ehtesab Bureau Chairman 
Senator Saifur Rehman and others.
Advocates Muhammad Akram Sheikh and Sharif Husain Bukhari said the 
references should be referred for investigation to an agency, which 
was not under the direct or indirect influence of the Prime 
Minister and the Punjab chief minister.
In their opinion, Military Intelligence or the Federal ombudsman 
could be entrusted with the investigations, and the CEC was fully 
competent to call for its assistance.
Akram Sheikh presented the case of the development of Prime 
Minister Nawaz Sharif's Raiwind farms (Jati Umra) at a cost of 
Rs630 million to Rs700 million of the public money.
Mr Sheikh pointed out that because of the development of the area, 
its value had gone up to Rs600,000 to 700,000 a kanal while once it 
was possible to purchase a square of land for that price. "The 
development of the area (at the public expense) has caused the 
nation a fortune, and it has made a fortune for a few individuals 
(of the ruling family)", Mr Sheikh said.

Aitzaz poses 20 questions to Nawaz, Saif
Bureau Report
ISLAMABAD, Jan 28: Opposition leader in Senate Aitzaz Ahsan posed 
20 questions to the government including the one whether the 
statement of assets filed by the prime minister under his own 
signature to the election commission, that he had paid Rs477 income 
tax from 1994-95 to 1996-97, was correct.
Speaking on an adjournment motion on alleged threats to Jang group, 
Mr Ahsan tried to establish that it was not the question of tax 
evasion but of the freedom of press. "If it had been the question 
of tax evasion then Prime Minister Nawaz Sharif, his family members 
and Saifur Rehman would have also been held accountable".
The leader of the opposition relied mainly on the returns filed by 
Nawaz Sharif and Saifur Rehman under their own signatures to the 
Election Commission to bring his point home that the Sharif family 
and the Ehtesab bureau chief were also tax evaders.
Giving details of the properties of Nawaz Sharif and his sources of 
income as stated in the returns he said, the prime minister owned 
five textile mills, four sugar mills, two paper and board mills, 
one spinning mills and one engineering mill.
He asked whether all these units had been managed so badly that 
they were getting no income from them.
Quoting another official document, he said, Nawaz Sharif owned a 
helicopter which was registered against his name at the address of 
H-180 Model Town, Lahore. The PPP stalwart recalled that the 
helicopter was used by Mr Sharif in his election campaign of 1997.
He said his son was on record saying that they had two flats in 
Park Lane, London. Every member of the Sharif family, he said, 
owned at least one Mercedes and one BMW car each besides palatial 
houses in Model Town and a huge farm at Raiwind.

MQM urges COAS to take notice of govt 'conspiracies'
Bureau Report
ISLAMABAD, Jan 26: The Muttahida Qaumi Movement has appealed to the 
Chief of the Army Staff, Gen. Pervaiz Musharraf, to take notice of 
"conspiracies being hatched to undermine and taint the impartial 
and uncontroversial image of the army."
The MQM's parliamentary leader in the Senate, Aftab Shaikh, alleged 
at a press conference that the government was making a "deliberate 
attempt to divide and dilute" the army on the dictates of the IMF 
and World Bank by deploying it in the PIA, WAPDA and other 
Shaikh Aftab said his party had tried to establish contacts with 
the army high command but there had been no response so far.
MQM chief to visit Germany, Belgium soon
By Nasir Malick
LONDON, Jan 24: Muttahida Qaumi Movement chief Altaf Hussain will 
travel to Germany and Belgium soon, his first visit outside Britain 
since 1992 when he left Pakistan and sought political asylum in the 
"The decision whether I travel on a Pakistani passport or on a 
British travel document has to be taken by the MQM central co-
ordination committee. But there is a consensus that I should travel 
on British documents," Altaf Hussain, who was formally allowed 
indefinite stay in Britain the other day, said.
He said he would visit his party units in Germany and Belgium as 
soon as he gets the travel documents, which he had already been 
assured, by the home office to be issued within two months.
Asked why he was not seeking renewal of his Pakistani passport, 
which expired in 1994, Hussein said he did not need it since he had 
no plans to visit Pakistan in the near future unless given 
clearance by the CCC.
He said the CCC had asked him not to return to Pakistan because 
there was no rule of law or democracy there. However, he said, 
whenever called back by the CCC, he would apply for a Pakistani 
No violation of Pakistan air space, says US
By Shaheen Sehbai

WASHINGTON, Jan 25: The State Department said that there were no 
violations of Pakistani air space in recent days, although one 
complaint had been lodged by Pakistan against these alleged 
Reacting to questions based on reports appearing in some Pakistani 
newspapers about the air space violations, an official of the State 
Department said "I am aware of at least one incident in which one 
plane was flying, but it was flying in international air space and 
did not violate the Pakistani air space."
When Pakistan Ambassador Riaz Khokhar was asked about the 
complaint, he told Dawn he had also read about the violations in 
news reports and had asked Islamabad to give some more details.

Talbott to hold talks on P-5 benchmarks
 By Shaheen Sehbai
WASHINGTON, Jan 26: The State Department said Deputy Secretary 
Strobe Talbott will try to pursue progress on all the benchmarks 
set by the P-5 countries for non-proliferation in South Asia.
Spokesman Jim Foley was asked whether he could say something 
specific on what, Mr. Talbott would be looking for, in terms of the 
four-point agenda that he has for his visit. 

He said: "Well, he's looking for progress. As you know, the P-5 
agreed on a series of benchmarks that involve progress on non-
proliferation. He's going to be pursuing progress on all of those 
Foley said: "Talbott hopes to achieve progress on those issues; but 
I certainly can't prejudge the outcome of the talks before they 

National interests uppermost: Kanju
Bureau Report
ISLAMABAD, Jan 27: State Minister for Foreign Affairs Siddiq Kanju 
has said that the government will pursue its policy on the CTBT 
strictly in the larger national interest.
Talking about the forthcoming visit of the US deputy secretary, 
Strobe Talbott, Kanju said in the talks Pakistan would pursue its 
policy on the CTBT in accordance with the parameters set by the 
joint sitting of parliament recently.
"The national security will remain our prime concern," Kanju 
assured the National Assembly.
Power theft Govt defers plan to set up mly courts
Bureau Report
ISLAMABAD, Jan 25: The federal government has deferred the plan of 
establishing military courts for trying the cases of power theft 
and recovery of WAPDA dues.
According to official sources all the plans for the establishment 
of over 30 military courts to try the cases of power theft and 
recovery of stuck up dues of WAPDA were complete. The government 
has decided to wait for the verdict of the Supreme Court on five 
petitions challenging the establishment of military courts.
WAPDA, which is facing a deficit of Rs.52 billion in current fiscal 
year, has been handed over to Army and is headed by a serving 
lieutenant general who is also enjoying the support of 35,000 
The lending agencies have repeatedly expressed concern over the 
deteriorating situation in WAPDA, and the handing over the 
management to a serving army general was a part of the scheme to 

enable WAPDA stand on its feet.
Sindh refuses to pay Rs4.5bn to WAPDA
By Sabihuddin Ghausi 
KARACHI, Jan 25: The Sindh government has refused to pay about 
Rs4.5 billion to the Water and Power Development Authority (WAPDA) 
in respect of a fresh electricity bill for July-to-December 1998 
The refusal comes in the wake of a directive given by Finance 
Minister Ishaq Dar 10 days ago to all the provinces to pay off all 
their current bills before the end of January. Mr Dar had chaired a 
meeting in Islamabad on Jan 14 and constituted a committee, headed 
by the auditor- general, to sort out disputes between the provinces 
and WAPDA within two weeks to ensure that " some cash flows into 
the WAPDA kitty before the end of this month".
Based on this fresh WAPDA demand on Sindh, federal Water and Power 
Minister Gohar Ayub informed the National Assembly the other day 
that Karachi owed WAPDA Rs12 billion against its "controversial 
claim of over Rs 5 billion".
A group of experts, comprising consultants and officials of WAPDA 
and KESC, is reported to have unanimously agreed late last month 
that actual total electricity billing on Sindh during the period 
1993-94 to 1997-98 is Rs9.37 billion. The sum of Rs13.33 billion 
has already been paid to WAPDA and hence an amount of Rs3.96 
billion is refundable to Karachi.
The Sindh government's position in respect of current billing for 
six months, from July to December 1998, is that it has to be re- 
assessed realistically and that the amount be adjusted against the 
refundable amount.

Pakistan urged to sever trade ties with India
Staff Correspondent
MUZAFFARABAD, Jan 26: Kashmiris observed a "black day" to protest 
against occupation of their motherland.
Demonstrations and public meetings were held in different parts of 
Azad Kashmir, as well as in the held territory, against killings, 
gang-rapes, arson and torture in the Valley and usurpation of 
Kashmiris' right to self- determination by India.
In Muzaffarabad, a rally, attended by political workers, government 
employees, traders, refugees and students, was held outside the old 
civil secretariat. The rally was addressed by Minister for Forests 
Chaudhry Latif Akbar, Minister for Agriculture Chacha Ali Mohammad, 
Minister for Local Government Khwaja Farooq, PPAK deputy chief 
organizer Shoukat Javed Mir, Hanif Awan of JKPP, Sheikh Aqeelur 
Rehman of Jamaat-i-Islami, Chaudhry Rashid of Muslim Conference (Q) 
, Tanvirul Hassan Gilani of Muslim Conference (Sikandar), Mahmoodul 
Hassan Ashraf of Jamiat Ulema-i-Islam, Liaquat Rathore of PP(N), 
Basharat Noori, Mirza Hamayun Zaman and others.
The speakers said India had no right to celebrate Republic Day 
because it had usurped Kashmiris' right to self-determination for 
the last 51 years in sheer disregard of its own commitments and the 
United Nations resolutions.
They called upon the Pakistan government to sever trade and other 
relations with India. They said Pakistan should not launch a bus 
service between Lahore and New Delhi. They were also against 
sending of a cricket team to India.
Later, the protesters went to the office of United Nations military 
observers and handed over a memorandum to an official there calling 
for an end to atrocities in Kashmir and holding of a plebiscite 
there. Earlier, some of the demonstrators burnt an Indian flag 
outside the UN observer's office.

Worst part of crisis over: Dar FCAs to stay frozen

ISLAMABAD, Jan 24: Finance Minister Ishaq Dar said that the frozen 
Foreign Currency Accounts (FCAs) are not going to be unfrozen 
unless the situation on foreign exchange reserves improved.
He said this in answer to a question while giving a review of the 
country's economy at a news briefing for the first six months of 
the current fiscal year.
About the conversion of Foreign Currency Accounts, he said, as of 
January 23,1999 the total amount encashed from these FCAs totalled 
$4.096 billion. The total FCAs exchanged in special US dollar bonds 
was to the tune of $454.3 million, he added.
Ishaq Dar said that foreign exchange reserves as on January 23, 
1999 was $1,646 million. 

LHC restores FCAs with immediate effect
By Shujaat Ali Khan
LAHORE, Jan 27: A three-member Lahore High Court bench declared 
void Section 2 of the Foreign Exchange (Temporary Restriction) Act, 
1998, freezing foreign currency accounts and ordered, their 
immediate restoration.
The judgement also set aside the State Bank circular mandating 
liquidation of FCAs as security for rupees loans and their 
encashment at the rate of Rs46 to a dollar.
The judge also directed the SBP to treat forex accounts as fixed 
deposits for three years and frame rules for the contingencies, 
treatment or education abroad, etc - which may warrant a premature 
He also directed the federal government to amend the Protection of 
Economic Reforms Act, 1992, which replaced Pakistan's mixed economy 
with a free economy and extended absolute immunity and exemptions 
to forex accounts, to eliminate the economic dichotomy.
The majority judgement also struck down Section 4(2) of the 1998 
Act, which protected post-freeze SBP circulars, for being violative 
of Article 4 and Article 25 (bar on discrimination). The impugned 
circular No 23, it held, might operate prospectively but could not 
be allowed to extinguish the existing contract. The conversion rate 
of Rs46 to a dollar was declared to be without legal effect.
Referring to the SBP and government stand that forex deposits had 
been consumed by successive governments, the judge said it was 
totally amazing as it amounted to a plea of insolvency before a 
court of law. He did not share the perception and said Pakistan had 
adequate material resources to meet all its requirements only if 
simplicity and austerity were observed. He referred to the SBP 
annual report for 1997-98 in this regard.
The majority judgement also pointed out that Section 2 of the 1998 
Act did not lay down any guidelines for SBP permission to operate a 
forex account. The legislature has transferred its function to the 
SBP, which is unconstitutional.
$1.4bn loans rolled-over by donors, says Dar
By Ihtashamul Haque
ISLAMABAD, Jan 25: Pakistan's hard loans worth $1.4 billion have 
been rolled over, providing a big respite for the country, 
disclosed the Minister for Finance, Ishaq Dar.
He said the remaining loans worth $2.3 billion were now to be 
rescheduled by the Paris and London Clubs. He said that the IMF has 
paved the way for seeking new loans or getting them rescheduled 
from various international lending agencies. "Our economic 
performance was good to have the donors' assistance restored 
despite international sanctions", Dar said.
To a question he said, London Club, was expected to meet in early 
February to reschedule Pakistan's loans.
Asked whether Pakistan has accepted hard conditionalities of the 
IMF to get the $1.5 billion ESAF/EFF reactivated, he said there was 
no such thing and that the agreement with the Fund was very much in 
line with the home grown economic policies.
The finance minister pointed out that Pakistan has not accepted to 
devalue its currency nor assured anyone to remove the prevailing 
dual exchange rate   

Dar briefs Paris Club
PARIS, Jan 28: Finance Minister Muhammad Ishaq Dar briefed the 
participants of Paris Club Creditor countries about Pakistan's 
economic position with a request of re-scheduling its loans.
The Minister presented proposal for the assistance in order to help 
Pakistan to have sustainable economic recovery and stability for 
which bold and structural reforms have already been introduced by 
The minister also held an informal meeting with the chairman of 
Paris Club Francis Mayer and discussed modalities and agenda of the 
formal meeting.
Earlier, Bretton Woods (IMF and World Bank) approved and released 
an amount of $ 575 million and around $350 million respectively, 
for Pakistan which helped surge country's foreign exchange reserves 
to $ 1.67 billion.APP

Agreement for mini-truck production signed
Staff Reporter
KARACHI, Jan 25: Dewan Farooque Motors Limited (DFML) signed a 
contractual agreement with Sind Engineering Ltd for the production 
of Hyundai mini trucks at the assembly plant of Sind Engineering 
Ltd (SEL).

Mir Akbar Ali Khan, Managing Director, SEL and Dewan Yousuf 
Farooque, Managing Director, DFML, signed the contractual agreement 
on behalf of their companies on Monday.
Mir Akbar said that the assembly of mini truck is based on the 
import of completely knocked down kits (CKD) depending on their 
arrival. He, however, said that the plant is expected to start 
vehicle assembly in July this year and 2,000 units will be produced 
in the first two years. He added that SEL has entered into a two- 
year contractual agreement with Dewan Group.
According to DFML, the company is expected to reach production 
level of 4,000 units in the next seven years.
DFML also announced that the company was in the process of 
finalising the Dewan-Hyundai plant design, where ultimately, all 
Hyundai products will be assembled.
The assembly of mini trucks, besides generating revenues, will 
offer employment to a large number of technically qualified 
personnel. Besides, there will be a number of jobs available for 
people qualified in the auto sector, said Dewan Yousuf Farooque, 
Managing Director, DFML.
KESC bonds NCBs may emerge as main buyers
Staff Correspondent

KARACHI, Jan 25: The power bonds, to be issued by Karachi Electric 
Supply Corporation in February, will carry interest rates of 17.5 
per cent with five years maturity period.
Energy sector sources said in the first two years, there would only 
interest payments on the bonds, while principal payment would start 
after two years.
The KESC is issuing these bonds to clear its Rs 11.5 billion dues 
against Pakistan State Oil (PSO), Sui Southern Gas Company (SSGC) 
and other energy sector's corporations.
Sources added that these bonds would be fully tradable, but would 
not be listed entities. "Banks will be free to transact these 
bonds, but the private listing of these bonds will not be allowed", 
they added.
"This is the first corporate debt instrument, which will be part of 
the banks' reserve requirements", sources said. Sources added that 
SBP had accorded an approval to make these bonds a part of banks' 
Statutory Liquidity Reserves (SLR) requirements.
Import duty on spares for 15 IPPs exempted
By Ikram Hoti
ISLAMABAD, Jan 26: The Central Board of Revenue has exempted 15 
independent power projects from payment of import duty on spares 
used in power generation.
Most of the IPPs, which will now enjoy the duty exemption at 5 
percent of the cost and freight (C & F) value, are United States 
based. With this exemption granted, a hurdle in the way of IPPs' 
operation as lawfully authorised power-generating and supplying 
companies in Pakistan, has been removed. "This would trigger their 
operation here with the status they attained on conclusion of 
agreements with them under the sovereign guarantees against 
suspension or withdrawal of the facilities attached", said an 
official of the finance ministry.
When CBR officials were asked to explain whether the Jan 16 CBR 
orders for resuming the duty exemptions for IPPs were in violation 
of the Presidential Ordinance that the CBR would no longer be 
authorised to allow exemptions of Customs Duty and Sales Tax they 
said no one in the CBR was authorised to offer any comments on this 

Exercises on ST implementation suspended
By Ikram Hoti
ISLAMABAD, Jan 26: The Central Board of Revenue has suspended all 
exercises for imposition of sales tax on retailers, and the IMF has 
been informed accordingly, with the plea that the levy of ST could 
not be ensured without creating the required collecting apparatus.
Informed sources mentioned that the CBR communicated to the IMF 
that the implementation of ST could not be ensured in the remaining 
six months of the current financial year as the imposition of the 
ST in the federal budget 1998-99 on retailers with annual sale 
turnover of over Rs5 million, has not been able to register more 
than 600 retailers against the target of 10,000 throughout the 
country, with an estimated tax deposit of Rs2.2 billion during 
current financial.
When asked as to how would the CBR convince the IMF on its 
performance in this sphere MNA Haji Abdul Mannan, who is heading 
the prime minister's team on securing support to implementation of 
this formula, said "we can explain our case".
He further said "We have no infrastructure for ST implementation in 
this shape. We have already substituted the money-component of the 
formula with the expansion of ST net to other spheres, and we would 
be able to meet the target in money terms".
Mr. Mannan said the IMF officials had agreed with Pakistan that in 
the absence of the required infrastructure, and in the presence of 
a corrupt tax collecting apparatus, ST would not be a successful in 
its present shape.

US firm to invest $970m in two hydel projects
By Ihtashamul Haque
ISLAMABAD, Jan 26: Synergics Development Corporation of the United 
States has decided to invest 970 million dollars in Pakistan to 
develop two hydel projects.
"Within next 45 days we will be signing a Power Purchase Agreement 
(PPA) with the WAPDA for developing two 684 mw projects at a cost 
of little over 970 million dollars", said Wayne Rogers, President 
Synergics Energy Development Corporation of USA. The projects will 
be undertaken on the basis of Built Operate and Transfer (BOT).
He pointed out that his company planned to develop 600 mw Kohala 
Hydel Projects in Azad Kashmir, which will cost 850 million 
dollars. Another 84-mw project, he continued, will be established 
at Matiltan in NWFP. Both the projects will be completed in the 
year 2006.
To a question, he said that his company will charge 4 to 5 cents 
for each KWH of power, which he did not believe, was any expensive 
preposition keeping in view the 20 years after which they will be 
handed over to the government of Pakistan without charging any 
money. "After 20 years both the projects will be owned by your 
Direct tax collection by Southern Region up 17pc
By Parvaiz Ishfaq Rana
KARACHI, Jan 26: The collection of all direct taxes by the Southern 
Region of Income Tax (Sindh-Balochistan) improved by 17 per cent at 
Rs 13.280 billion during first six months (July- Dec) of current 
fiscal as against Rs 11.381 billion recorded in the corresponding 
period of last year.
This was only possible after the region managed to improve over the 
last year's revenue collection made during same period in all the 
category of direct taxes, including income tax, wealth tax, capital 
value tax (CVT) etc.
For the fiscal year 1998-99, the Central Board of Revenue (CBR) has 
fixed a target of Rs 33 billion for the Southern Region of Income 
Tax and on collecting Rs 13.280 billion during July-Dec over 40 
percent of the target had been achieved.
The official figures indicate that major thrust of revenue 
collection emerged during the month of Nov and Dec 1998, when the 
region collected Rs 4.87 billion in revenue. A remarkable increase 
in collection of income tax from Rs 10.542 billion recorded during 
first six months of last year to Rs 12.474 billion this year helped 
to surpass the target. The wealth tax collection also improved from 
Rs 663 million to Rs 696 million, however, CVT stood static at Rs 
141 million.

Ten leading underwriters respond to EoI bid
By Ihtashamul Haque
ISLAMABAD, Jan 27: Ten underwriters have responded to the 
Privatization Commission's invitation to Expression of Interest 
 (EOI) on pre-qualification for 49 percent equity stake in the 
Allied Bank of Pakistan (ABL).
"Now the ABL is ready for privatization well before the end of the 
current financial year", said the Chairman of the Privatization 
Commission, Kh. Muhammad Asif.
Speaking at a news conference here on Wednesday, he also claimed 
that financial health of the Habib Bank Limited (HBL) and the 
National Bank of Pakistan (NBP) has substantially been improved for 
their early privatization. 

He said all the 10 underwriters of the ABL enjoyed great 
reputation. "In case there is no good market response, these 
underwriters will assume the remaining shares of the ABL". The 
government has already offloaded 51 percent shares of the ABL and 
management transferred to the employees who purchased these shares.
These underwriters have deposited a non-refundable processing fee 
of 5000 dollars and are: First Capital ABN Amro Equities (Pakistan) 
Ltd, The Interlink Companies, USA, Gulf Pak Refinery Ltd, M/S Bin 
Ham Group Abu Dhabi & Associates, Fateh Industries Ltd, Siddiqsons 
Group, Allied Bank Officers Federation of Pakistan and the Allied 
Bank Workers Federation of Pakistan, Master Group of Industries, 
Mehtab Khan and Fateh Group, Hyderabad.
Agreement signed for power generation
Bureau Report
PESHAWAR, Jan 27: An agreement was signed here between the 
government of NWFP and an American firm Synergics Development 
Corporation for setting up of a hydro power generation project at 
Matiltan in Swat.
The project, on completion will produce 84 mw electricity on build 
operate and transfer (BOT) basis.
Matiltan hydel power generation project is to be completed in 5 
years period. It will have no environmental affects in the area and 
provide job opportunities to about 3000 people directly and 
indirectly. The project will be handed over to the provincial 
government after 25 years of running by the company.
Bodies formed to settle sales tax refund claims
Staff Reporter
KARACHI, Jan 28: The Export Promotion Bureau (EPB) has constituted 
two committees for sorting out exporters' problems with regard to 
refund amounts and claims against wastage's made under sales tax 
Decision to this effect was taken in a meeting of the Export 
Facilitation Committee, which was attended by collectors of Sales 
Tax and Customs (export) and presided by Chairman EPB, Wajid Jawad.

After listening to exporters' complains the chairman EPB 
constituted two separate committees to devise a suitable format for 
the calculation sheet and claims against wastages.
Industry suffering Rs8.8m loss per hour
Staff  Reporter
KARACHI, Jan 28: The city trade associations have expressed dismay 
over the power crisis and called for intervention of the government 
to prevent the situation from going worse.
According to Council of Karachi's Industrial Associations, the 
absence of power is causing a production loss of Rs8.8 million per 
hour to the industries.
The Chairman, CKIA, Capt. Moiz A. Khan said that the exporters have 
not been able to ship the consignments so far after opening of new 
textile quota. Even the Letter of Credits (L/Cs), which were opened 
few days back, are also expiring.
Prime minister wants industrialists to double the export, but 
enquired as to how can the exports be doubled when the power was 
not available.
IMF report triggers heavy foreign selling in stocks
Staff Correspondent

KARACHI, Jan 29: Stocks fell across a broad front on heavy foreign 
selling triggered by negative IMF report about Pakistan economy and 
its inherent weaknesses.
Although the index finally managed to finish around 900.58, off 
16.63 points as compared to 917.21 points a day earlier.

Big losers were led by leading MNCs, notably Lakson Tobacco, BOC, 
Shell Pakistan and Lever Brothers, which suffered decline ranging 
from Rs 5.00 to Rs 32.00, followed by Adamjee Insurance, EFU, 
Shakerganj Sugar, Orix Leasing, R.R.P, PSO and Ghandhara, falling 
by one rupee to Rs 2.00.
PTCL again led the list of most actives, off 30 paisa at Rs 18.10 
on 17 million shares, followed by Hub-Power, off 40 paisa at Rs 
12.05 on 11 million shares, ICI Pakistan, lower 20 paisa at Rs 8.95 
on 4 million shares, PSO, off Rs 1.60 at Rs 60.75 on 5 million 
shares, and Fauji Fertilizer, easy 25 paisa at Rs 41.30 on 3 
million shares.
Other actively traded shares included MCB, lower 40 paisa on 1.246 
million shares, Bank of Punjab, up 10 paisa on 0.496 million 
shares, Adamjee Insurance, sharply lower by Rs 2.35 on 0.466 
million shares, Dewan Salman, lower 55 paisa on 0.451 million 
shares, KESC, easy 25 paisa on 0.471 million shares, and Southern 
Electric, unchanged on 0.405 million shares, and Telecard, steady 
five paisa on 0.360 million shares.
DEFAULTING COMPANIES: Shares of Al-Qadir Textiles came in for stray 
support but as sellers were not willing to sell at the offered 
prices no physical business was recorded.
BOARD MEETINGS: Sitara Chemical, Feb 1, Island Textiles, Tata 
Textiles, Salfi Textiles, Feb 3, Pakistan Industrial and Commercial 

Leasing, Feb 6.
DIVIDEND: Hoechst Marion Roussel Pakistan, cash 20 per cent on 
after-tax profit of Rs 30.123 million, International Investment 
Bank, nil on post-tax profit of Rs 204.411 million, and Colony 
Textiles, right shares at the rate of 40 per cent.

Back to the top
What has changed?
Ardeshir Cowasjee
LITTLE has changed since Maharaja Ranjit Singh, the first and the 
last true Lion of the Punjab, ruled over his kingdom.
After his seventeenth annual punitive plundering raid into Northern 
India, Ahmad Shah Abdali of Kabul decided in 1764 that enough was 
enough. The Sikh chieftains of the Land of the Five Rivers, who had 
greatly profited over the years of anarchy and disorder, then 
decided that they must organize themselves.
They divided up the land into private estates, which were 
distributed amongst the Sardars. One Sardar, Churut Singh, was 
allotted lands comprising Gujranwalla, Wazirabad, Chakwal, Pind 
Dadan Khan and the adjoining areas. He was killed in 1774 when his 
matchlock blew up in his face, and was succeeded by his ten-year-
old son, Maha Singh, who turned out to be not only a redoubtable 
warrior but an expert intriguer and thus considerably extended his 
territories. When he died in 1792 he was succeeded by his 
precocious twelve-year-old son, Ranjit Singh.
In 1796, Shah Zaman of Kabul marched into Punjab and met with no 
opposition. All the Sardars along his route fled their lands except 
Ranjit Singh who quietly remained at his Ramnagar estate. Facing a 
revolt back home in 1799, Shah Zaman withdrew his troops, leaving 
Lahore under the charge of three Sikh governors. His return march 
led him through Ranjit's territory. Crossing the swollen Chenab 
near Ramnagar, ten of his guns were sunk. Shah Zaman promised 
Ranjit that were he to recover the guns when the waters abated and 
forward them on to him at Kabul he would present him with the 
formal grant of the city of Lahore. Ranjit, at nineteen, duly 
performed his task, marched on Lahore, seized the city, and never 
looked back.
Shah Zaman was deposed by his brother and blinded. The Afghan raids 
into Punjab ended, and Ranjit was released from all allegiance. In 
1801, with the Sardars in disarray, Ranjit proclaimed himself the 
Maharaja. He captured Amritsar a year later, proceeded to subdue 
the scattered Sikh and Pashtun holdings, and in 1809 signed a 
treaty with the British, who had checked his eastward forays, 
settling the River Sutlej as the eastern boundary of his kingdom.
He then turned his ambitions towards the north and west. He 
captured Multan, then Peshawar, expelled the Pashtuns from the Vale 
of Kashmir, and by 1820 had consolidated his rule (he later added 

Ladakh to his kingdom). The armies with which he achieved his 
victories were composed of Sikhs, Muslims and Hindus, as were his 
In 1838, he made another treaty with the British and marched with 
them to restore Shah Shuja to the Afghan throne. He returned to 
Lahore where in 1839, exactly forty years after he had entered the 
city as its conqueror, he died.
Within seven years the state he had created collapsed, destroyed by 
the squabbles of the chieftains and the ineptitude of his eldest 
son Kuruck. Kuruck died in 1840, and his son, Nehal, was killed 
while returning from the funeral, crushed by the fall of an archway 
as his elephant passed beneath it. Anarchy and confusion reigned 
until 1849, when the last of Ranjit's successors was deposed and 
Punjab was annexed to the British possessions in India. Law and 
order took over, lasting, with few interruptions, until the British 
Raj marched off into history.
Ranjit Singh had no judges. The revenue collectors, themselves the 
principal oppressors, dealt with crimes, if they had the mind to 
it, but in general things just took their course without either 
police or courts until someone in authority was bribed or an 
official found it less trouble doing right than wrong. The British 
instituted independent judges, courts and a police force and under 
them, the people, satisfied that they would be free from 
lawlessness and extortion, cultivated their land and paid their 
taxes. The British constructed roads and canals throughout the 
broad tracts of desert, and planted trees all over the proverbially 
treeless Punjab where the Sikhs had destroyed trees thoughtlessly 
and on an enormous scale.
*From the preface to 'Punjaub Before the Raj' by Steinbach, written 
in London in 1845: "The Author and Compiler of the following work 
does not profess to be alive to the intentions of the British 
Government in respect to the Punjaub, but he thinks the annexation 
of that extensive and fertile territory to the provinces of British 
India so necessary and unavoidable a result of its present state of 
disruption that he regards it as a duty to give his countrymen the 
clearest notion of the Sikh state it is in his power to convey."
Steinbach on 'Commerce and Manufactures of the Punjaub': "During 
the latter years of the rule of Runjeet Singh, the tranquillity 
which prevailed stimulated traffic, and a considerable commercial 
intercourse between the Punjaub, British India and Afghanistan was 
the result. Since the demise of the Old Lion, however, trade has 
declined owing to the distracted and insecure state of the country; 
the robberies upon the high road, vexatious exactions in the shape 
of duties and tolls, interruptions to manufactures, the absorption 
of capital in military armaments and civil contests, the withdrawal 
of large monetary resources from circulation and their removal to 
places of security, have all had their effect in checking and 
cramping mercantile operations. In ordinary and peaceful times, and 
under a wholesome system of rule, a very large trade might be 
firmly established; for, as we have shown, the products of the 
country are abundant, and in the hands of people to whom the 
results of their industry are secured, may be turned to excellent 
account in a variety of ways....
"The transit of goods from countries beyond the Indus to Hindostan, 
and vice versa, forms a larger source of mercantile revenue than 
the returns upon the home manufactures of the country. But in this 
respect also the paralyzing effect of internal disturbance has been 
felt, and the want of a fair system of collection of dues and tolls 
has at all times rendered the gross revenue precarious and 
infinitely below what would be obtained by an active, wise, and 
liberal administration."
On 'The Government of the Punjaub': "The Sikh chieftains formed 
themselves into an oligarchy, which, like all similar institutions 
of which history preserves a record, gradually fell under the yoke 
of one family more potent than the rest, and at length of one man. 
The only government, therefore, of which the Sikhs have had any 
experience were the aristocratic and the despotic, and judging from 
their conduct under these respective systems, we have no hesitation 
in coming to the conclusion that a despotism is best suited to 
their temperament....
"Runjeet Singh exercised an absolute and arbitrary sway over the 
people, constituting himself chief judge and referee in the 
question of importance, collecting and appropriating the revenue, 
appointing and removing all the state officers at will, personally 
regulating all political negotiations, and exercising the royal 
prerogative of coining money and making war. Under his rule the 
whole country was divided into provinces, and these provinces into 
districts, which were farmed out to the highest bidders. The 
Maharaja pressing upon the provincial administrators for their 
quota of revenue, and these authorities, who were armed with the 
terrible power of life and death, in their turn grinding the 
farmers with their exactions, the condition of the peasantry, whom 
the farmers in like manner squeezed for rents, was always the most 
abject and pitiful that can be conceived. The provincial governor, 
remunerating himself with the surplus of the revenue which he had 
contracted to pay the sovereign, was unscrupulous as to the means 
by which he wrung their substance from the landholders."
And on one of the most remarkable men at the court of Ranjit Singh, 
"Faquir Uzoozerdeen," a barber-surgeon, who added astrology to his 
knowledge of quack-salving and served Ranjit as his 'hukeem' and 
private secretary, and in confidential negotiations with the 
British. "He was a very able negotiator; insidious beyond measure, 
and a complete master of humbug. He was the mouthpiece of the 
stupid Sikh sirdars, and as he almost always formed the nominal 
head of the missions they were sent on had their free leave to talk 
while they sat by and listened in silence and admiration to the 
voluble flow of his ceaseless harangues. Nightingales of esteem 
warbled in meadows of attachment, and rivers of devotion rushed 
into oceans of affection. His other most important duty was 
interpreting the Maharajah's words. A few inarticulate growlings of 
the old lion were quite enough to vivify the Faquir's imagination 
and so lengthy often was his paraphrase of the Maharajah's verbal 
text that one became inclined to wonder whether one word in Turkish 
could mean so much."
One change: The present would-be 'Loin' of Punjab, doubling as the 
'Loin' of Pakistan, has no need to even growl. His 'Faquirs' merely 
look into his eyes to learn the message he wishes conveyed.

Here be dragons 
By Irfan Husain

IN its Urdu connotation, the term ilaqa ghair has wild and 
mysterious overtones. Its English equivalent, 'tribal area', is far 
more prosaic and down to earth.
Medieval cartographers would often denote unexplored territory by 
leaving it blank on their maps, and write "Here Be Dragons" across 
it. A splendid picture of a fire-breathing dragon would usually 
accompany this legend. But as more and more bits of our planet have 
been explored, charted and described, the only true ilaqa ghair on 
earth are the unmapped areas of the mind. Here, truly, there are 
Long before the creation of Pakistan, the rugged areas of the 
northwest Frontier have been viewed from Delhi as a buffer zone 
between the subcontinent and Afghanistan. It was the policy of 
successive Mughal and British rulers to keep the territory quiet 
with a combination of guile, bribes and force. The latter 
established a network of Tribal Agents to administer the area, 
occasionally sending in a force of redcoats on punitive 
expeditions. The cost of this policy in men and treasure was high, 
but was considered worthwhile given the high stakes in The Great 
Pakistan has continued this policy for the last fifty years, giving 
the locals the right to live under tribal law; the writ of the 
state runs only along the main roads of these areas. Kidnap victims 
and stolen vehicles are routinely taken there, and their release 
negotiated, often with the help of the local Tribal Agent. 
Gunrunning and drug trafficking are common, and tribal chiefs and 
other notables have amassed huge fortunes. But the average Pakhtoon 
remains poor, uneducated and backward in every sense.
Paradoxically, instead of growing weaker, this archaic system has 
put down deeper roots than ever before. No government has been 
strong or self-confident enough to bring in the ilaqa ghair into 
the mainstream. Each ruler has continued the appeasement policy of 
the British, and the Soviet invasion of Afghanistan and the current 
civil war there have ensured that nobody in Islamabad is willing to 
stir this particular hornet's nest.
But thus far, the tribal areas have conjured up an image of 
ignorance, poverty and lawlessness. Suddenly, they are setting the 
national agenda. The recent vote in the NWFP provincial assembly to 
promulgate Shariat law in Malakand Agency is a sign of things to 
come: supported by the ruling party and the PPP opposition, the 
legislation was passed in record time. One only wishes there were 
similar co-operation between the two in other, more relevant 
In succumbing to the demands of Maulana Sufi and his armed cohorts, 
the government has opened a veritable Pandora's Box. What is to 
prevent retrogressive elements in other administrative units to 
raise the same demand? As we have seen in Malakand, all it takes is 
a lashkar of fanatics with modern arms to bend the federal 
government to its will. It is only a matter of time before the tail 
wags the dog, and we see a steady erosion of human rights, 
especially among women and the minorities.
Clearly, this is the first taste of the Talibization of Pakistan. 
With Nawaz Sharif openly voicing his admiration for the state of 
barbarism that prevails in Afghanistan, the forces of darkness have 
been strengthened. Who in his right mind would wish to take on 
these elements that operate openly beyond the law without any fear 
of retribution? And yet the government is trying to crack down on 
fanatical groups like the Lashkar-i-Jhangvi in Punjab, which has 
been accused of trying to assassinate the PM in Raiwind recently.
Mr Sharif and his coterie obviously do not see the contradiction 
inherent in this two-track approach. Terrorism and the use of force 
to enforce their agenda, no matter from whatever quarter, must be 
opposed across the board. By accepting the demands of one lot in 
Malakand, while simultaneously reining in a similar group in 
Punjab, the government is embarked on a policy that is as futile as 
it is dangerous.
So we have come full circle; the most backward areas are now 
setting the national agenda, and it is the sane and the rational 
who must try and carve out their own ilaqa ghair. I described one 
such haven last week, and will continue to search them out. A place 
free of the violence and madness that have afflicted the country is 
clearly to be guarded and treasured. But the ultimate ilaqa ghair 
has to be in the mind. It is precisely because we have allowed our 
minds to be taken hostage by a malign state apparatus and elements 
on the lunatic fringe that we are in our current predicament. 
By gradually allowing cynical politicians and uniformed adventurers 
to manipulate religious sensibilities to perpetuate themselves, we 
have allowed the most retrograde forces to dictate how we must live 
and think.
Shakir, my 23-year-old son, recently accused me and my generation 
of not taking a stand, thus allowing the country to descend into 
the circle of hell we are heading towards. I was forced to concede: 
clearly, there has been a massive failure of courage to stand up to 
reactionary bullies, despite their small numbers and lack of 
electoral support. Politicians like Zulfikar Ali Bhutto and his 
daughter Benazir Bhutto have repeatedly let us down by voicing 
liberal slogans to garner our support, and then cutting cynical 
deals with the mullahs. Perhaps their betrayal has been more 
painful than the ruling party's: the latter had no liberal 
pretensions to begin with.
As the space for rational thought and free debate shrinks steadily, 
we are being squeezed from every direction. The rise of Hindu 
fundamentalism on our eastern borders proceeds in step with the 
grip the Taliban have acquired in Afghanistan. Ironically, Iran has 
commenced a cautious journey away from rigid dogma and orthodoxy. 
There, liberals are slowly carving out breathing space: but they 
are willing to make sacrifices for their cause, something that can 
only be said for a handful of people here.
I was in Lahore last week to condole with the family of my dear 
friend Zahoorul Akhlaq and his charming and talented daughter Jahan 
Ara. They were brutally gunned down in their apartment while the 
girl's fianc´┐Że and Zahoor's friend were seriously wounded. They 
were the most civilized and gentlepeople you could hope to meet 
anywhere. Perhaps it was for this reason that they moved to Canada 
a few years ago.
It seems that you can leave Pakistan, but it won't leave you.

Malik and Inzamam save Pakistan from likely defeat
GWALIOR,(India), Jan 25: Salim Malik and Inzamam-ul-Haq saved 
Pakistan from potential defeat in their opening tour match against 
India A.
Malik struck 122 and sixth wicket partner Inzamam 96 to lift their 
team from 23 for five to 272 all out, boosting a 58 runs first 
innings advantage to 330. The stand was worth 148.
Pakistan's bowlers then restored control as India A stuttered to 
111 for five and the match was drawn. Inzamam narrowly missed his 
century for the second time in the three-day match. He had reached 
98 in the first innings when Pakistan declared.

Pakistan's five main bowlers took one wicket each, but paceman 
Waqar Younis, punished in the first innings, conceded 40 in eight 

Youhana, Moin hit gutsy half centuries as Pakistan make 238
Samiul Hasan
CHENNAI (India), Jan 28: Yousuf Youhana and Moin Khan stroked gutsy 
half centuries but three cruel umpiring decisions left Pakistan 
with a daunting task in the first cricket Test against India.
Saeed Anwar, Ijaz Ahmed and Saqlain Mushtaq fell victims to highly 
debatable decisions by Steve Dunne and V.K Ramaswamy of India as 
Pakistan were bowled out for 238.
Youhana, who has made a great reputation of himself in a very short 
time, scored a painstaking but attractive 53 and Moin Khan, 
Pakistan's man of crises, slammed an entertaining 60.
Pakistan, requiring a couple of early wickets to get into even 
terms with India, were let down by their demon but out-of-rhythm 
fast bowlers Wasim Akram and Waqar Younis as the home team opener 
took advantage of some erratic, wayward and ill-planned bowling to 
race to 48 without loss in just eight overs.
Debutant and local boy Sadagopan Ramesh struck five some sweetly-
timed boundaries in his 30 while Venkatsai Laxman displayed his 
wrist power by reaching 18 with three boundaries.
Anwar, who was blossoming by reaching 24, was declared leg before 
by Ramaswamy as soon as the ball struck his pads after the opener 
had offered no stroke. The ball was clearly missing the off-stump 
by at least six inches but Ramaswamy thought it otherwise.
Four overs later, Dunne raised his finger towards the heaven when 
Ijaz was hit on the pads when stretched well forward  again while 
offering no stroke. Television replays suggested that the ball 
might have missed the leg-stump.
The dismissals of Saeed and Ijaz, nevertheless, had a huge impact 
on the middle-order. Their departure in a space of 20 runs after 
make-shift opener Shahid Afridi had already perished in the eighth 
over of the match, pushed the Pakistan middle-order into their 
shells. And when they tried to release the pressure, they plunged 
into further trouble. Inzamam-ul-Haq, who came into the Test after 
having scored 98 not out and 96 at Gwalior, offered a return 
forward catch to Anil Kumble off a full toss. Salim Malik was cut 
into half by Javagal Srinath immediately after lunch when the ball 
clipped the bails as Pakistan slumped to 91 for five.
However, Pakistan's young gun, Yousuf Youhana, and man of crises, 
Moin Khan, rebuilt the innings by sharing in a 63-run sixth wicket 
stand in 85 minutes. A more positive seventh wicket partnership of 
run-a-minute 60 between Moin Khan and Wasim Akram helped Pakistan 
get to the eventual score which at one stage looked beyond reach.
Youhana, who was looking good, was taken by surprise by India's 
golden boy Sachin Tendulkar when he was trapped right in front of 
the wickets. But Youhana displayed great maturity and mental 
toughness in his 140 minutes knock in which he received 107 balls 
out of which seven were converted into boundaries and a straight 
six off Anil Kumble. It was Youhana's fifth half century in 13th 
Test innings besides a century against Zimbabwe in the previous 
Moin Khan was as confident as ever when he cut with authority and 
drove with power to belt seven boundaries and a six off Sunil Joshi 
in his 117-ball 60 that came after 145 minutes of occupancy of the 
Moin was smartly caught by Saurav Ganguly in the first slip while 
trying to guide a short ball from Kumble towards the third man 
Wasim Akram, captaining Pakistan for the fourth time in five years, 
made no mistakes until he was caught by Venkatsai Laxman at short-
leg off Kumble for 38. His innings sparkled five boundaries and six 
from 60 balls.
Despite bad umpiring, the Indians cannot be discredited from 
putting up a disciplined performance. Javagal Srinath, their main 
striker, jolted the top order by accounting for Afridi and Anwar 
and from there Kumble took over the charge by dismantling the 
middle-order to finish with six wickets for 70 in his 50th Test 

Azharuddin's captaincy was at its best when he brought on Tendulkar 
after Yousuf Youhana and Moin Khan looked to take away the game 
from him. Tendulkar struck on his third delivery to once again 
prove how shrewd and smart his captain was. But fielding once again 
remained below par as no less than four catches went down  
Azharuddin being the guilty on two occasions. He dropped Afridi on 
the 14th ball of the match while he showed greasy palms again when 
he failed to hold onto a difficult chance offered by Anwar. Yousuf 
Youhana and Moin Khan were also the beneficiaries on one occasion 
Saqlain puts the Test on a knife-edge with a 5-wkt haul
By Samiul Hasan

CHENNAI (India), Jan 29: The historic first Test between Pakistan 
and India was put on a knife-edge by Saqlain Mushtaq who spun the 
home team out for 254 in front of a disciplined but partisan 
capacity crowd here on Friday.
Saqlain, captured his fifth of the five-wicket haul in 18 Tests 
when he grabbed five wickets for 94 runs in 35 marathon overs to 
allow India take a slender 16-run first innings lead after they had 
resumed this morning at 48 for no loss. That lead had been slashed 
by the stumps on the second day by the tourists who had reached 34 
for the loss of Saeed Anwar's wicket.
The left-hander, for the second time in the match, was adjudged lbw 
 this time right in front of the wickets. When play ended with 5.1 
overs still to be bowled, Shahid Afridi was at the crease on seven. 
With him was Ijaz Ahmad on 11.
Afridi finished with three wickets for 31 runs, including the 
wicket of Saurav Ganguly who scored a fighting 54 off 138 balls 
with two sixes (both off Saqlain) and three boundaries. But it was 
Saqlain Mushtaq who was the cat amongst the pigeons. 

Contrary to the welcome Tendulkar received from the spectators, 
Mohammad Azharuddin walked out but lasted only 28 balls before 
Saqlain Mushtaq had him caught by Inzamam-ul-Haq at silly point.
In the second spell, he fooled a defiant Rahul Dravid off a 
straight ball on which the batsman offered no stroke and was 
adjudged lbw. Dravid, scored a flawless 53 off 113 balls with five 
boundaries and a six.
Nayan Mongia was Saqlain's fourth victim. The Indian wicket keeper 
tried to counter him by dancing down the track but ended up missing 
the line of the ball to leave an easy stumping for Moin Khan. Anil 
Kumble hung around for 45 balls before becoming Saqlain's final 
scalp when he was caught at forward short leg by Yousuf Youhana.
The match is delicately placed with Pakistan just 18 runs ahead 
with nine wickets and three days remaining. But if history has 
anything to do with this Test, Pakistan should emerge winners as in 
the Bangalore Test 12 years ago.

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