------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 12 February 2000 Issue : 06/07 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + Pakistan to remain N-state after signing CTBT + Musharraf for boosting economic ties with Iran + Clinton may visit Pakistan: magazine + Clinton concerned at discord + No immediate plan to repatriate stranded Pakistanis + Corruption: seven FIA officials dismissed + Benazir says Pakistan is in turmoil + Price issue deferred: Provinces wheat quota enhanced + Foreign legislators briefed: India increases LoC violations + PIA asked to prepare revamping plan + GDA against change in Constitution --------------------------------- BUSINESS & ECONOMY + Action plan needed to reduce debt burden: SBP + CE tells banks to expand loan base + Number of taxes to be cut to three: Shaukat + New package for oil exploration shortly, says Aminuddin + Hubco's net profits plunge + CBR axes 1,016 IT posts + US eases controls on export of computers + Bank of Khyber to invest in leather sector + Wapda blames Sindh for big default + ADB to start $490m new lending programme + Cabinet body okays shipping policy --------------------------------------- EDITORIALS & FEATURES + The best in Pakistan Ayaz Amir + The armies of the night Irfan Husain ----------- SPORTS + Saeed for separate teams for Tests and one-dayers + Saeed Anwar to lead Pakistan against Sri Lanka + Shoaib says decision vindicates his innocence
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20000207 ------------------------------------------------------------------- Pakistan to remain N-state after signing CTBT ------------------------------------------------------------------- ISLAMABAD, Feb. 6: Foreign Minister Abdul Sattar on Sunday said Pakistan was a declared nuclear weapon state and signing the Comprehensive Test Ban Treaty (CTBT) would not alter its status. Talking to a panel of APP journalists here, he said Pakistan did not need a certificate for its nuclear status. The international community does not deny this fact, he said. When questioned on US Deputy Secretary of State Strobe Talbott's statement acknowledging India as a de facto nuclear state, Sattar said Assistant Secretary Karl Inderfurth had said the same about Pakistan. He said the CTBT was a unique treaty as it would not come into force unless signed and ratified by 44 countries who either possessed nuclear weapons or could produce fissile material. Meanwhile, Sattar clarified that even if Pakistan signed the treaty, it would not forego its right to conduct further tests, if India conducted further tests. This non-discriminatory principle is contained in Article 14 of the CTBT, which was incorporated in 1996 and Pakistan was in the forefront among the movers of this amendment. Before this amendment became a part of the CTBT, Sattar said he himself had opposed signing it. But then Article 14 incorporated the linkage between Pakistan and India in the text of the treaty. After the treaty changed, it was no longer necessary to oppose it. "Whether Pakistan and India become parties to the Comprehensive Test Ban treaty or not, that will not affect the nuclear status of either country or their right to maintain and even develop their nuclear arsenals," said the foreign minister. Sattar said the word "recognition" of nuclear status was used in the context of the Non-Proliferation Treaty, which was negotiated over thirty years ago. Then there were only five declared nuclear weapons states. Amendment of that treaty is a different and difficult proposition, he added. Questioned when Pakistan was going to sign the Comprehensive Test Ban Treaty, he said the government "is in no tearing hurry." The purpose of the on-going debate is to promote better understanding of what this treaty is. Asked about critics' claim that signing the CTBT will result in rollback of Pakistan's nuclear programme, Sattar urged them to read the text of the Comprehensive Test Ban Treaty. Its only object is to prohibit nuclear tests. Pakistan will never agree to rollback, he said. He said 156 countries had signed the treaty. They include not only all the other major Muslim countries but also China and Israel. "Have they agreed to give up their nuclear arsenals?" he asked. "If either one does not become a party, the treaty just cannot enter into force. So it has become irrelevant which country signs it first," he said. On consensus, he said actually every government had been in favour of it. He said in 1996 Pakistan voted in favour of the treaty. In September 1998, the Pakistani prime minister announced in the UN General Assembly that Pakistan would sign the treaty if sanctions were lifted. Most knowledgeable commentators favour signing. Most of those who speak against do not seem to know what the CTBT is. It is our earnest effort to explain the treaty so that people understand that it will have no adverse impact on our nuclear weapons programme.- APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- Musharraf for boosting economic ties with Iran ------------------------------------------------------------------- ISLAMABAD, Feb 10: Syed Hasan Agha Khomeini, grandson of Imam Khomeini, who is currently visiting Pakistan, called on Chief Executive General Pervez Musharraf here on Thursday evening. Welcoming the Iranian dignitary, Gen Musharraf said his visit would go a long way in strengthening the long-standing historical, cultural and religious bonds shared by the two brotherly Muslim countries. He emphasised the need for cementing economic ties between the two countries. "Pakistan and Iran have a key role to play in uniting the Muslim Ummah and in the projection of Islam in its true perspective as it is a religion of peace." He appreciated Iran's unflinching support to Pakistan, particularly on the issue of Kashmir. Syed Hassan Agha Khomeini, while reciprocating the good wishes of Gen Musharraf, said Iran, as chairman of the Organization of Islamic Conference, was deeply concerned about the problems being faced by the Muslim Ummah in various parts of the world, including Kashmir, and would play its role to resolve them. Also present on the occasion were Minister Abdul Malik Kasi, members of Iranian delegation, including Ayatollah Seyed Mohammad Mousavi Bojnourdi, Syed Raza (Yasser) Mostafavi Khomeini, Maulana Ishaq Madni, Syed Mohammad Hashami, Iran Foreign Affairs DG Jalaluddin Nameni; Iranian Ambassador Syed Serajeddin Mousavi and Iranian Embassy Minister Counsellor Jalal Kalantari. Later, the chief executive hosted a dinner in honour of the Iranian delegation. The members of the National Security Council and Cabinet and senior military and civil officers also attended the dinner.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000209 ------------------------------------------------------------------- Clinton may visit Pakistan: magazine ------------------------------------------------------------------- Correspondent WASHINGTON, Feb 8: President Bill Clinton may visit Pakistan, irrespective of whether Islamabad meets US concerns about terrorism and other issues, Newsweek magazine said in its latest issue quoting official sources. As the magazine hit the stands, Secretary of State Madeleine Albright also tried to clarify some perceptions about President Clinton's visit to India. "The upcoming visit to India is not a sign of Washington's absolute approval of the country's policies and will focus on issues of deep concern to the US, Albright said on Monday. "The trip is one that will be important, but it is not just a sign that everything has been dealt with and all the problems have been resolved," Albright told reporters. Newsweek said: "A snub (to Pakistan) might add to the region's instability... and there is little chance that the White House will make good on its threat to leave Pakistan out of the president's South Asian trip." "Experts worry that such a snub might add to the region's instability, worsening the threat of outright war and a possible nuclear exchange between Islamabad and New Delhi ... Such a risk is unacceptable. That is why practically any gesture of accommodation from Islamabad will probably be rewarded by a visit from Clinton," Newsweek said. Stating that Gen Pervez Musharraf is making efforts to cooperate with the Clinton administration in fighting terrorism, the weekly said: "Already he (Musharraf) is speaking of a possible visit to Afghanistan. His agenda would likely include talks on the status of Osama bin Laden. "Not that anyone expects the Afghans to extradite their ill-behaved Saudi friend," it, however, noted. Newsweek said the question is whether "Pakistan's pragmatic military ruler, Musharraf, can keep a lid on the radicals around him. Some of the most dangerous individuals belong to a phalanx of pro-Islamic officers immediately below him. There has been an alarming fundamentalist Islamic trend in the army," a senior military official told the weekly. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- Clinton concerned at discord ------------------------------------------------------------------- Correspondent WASHINGTON, Feb 9: President Clinton on Wednesday repeated his promise "to do something" about Pakistan and India before he left his office in January next year. Speaking to reporters at the White House, Mr Clinton said he was "profoundly concerned" about the discord between rivals India and Pakistan and hoped to do something to ease it before leaving office. The President made the comment, his second in recent days, in the context of questions about his forthcoming visit to South Asia. But he again said he had not yet decided whether to make a stop in Pakistan. The comments were made amid persistent reports that the Mr Clinton wanted to visit Pakistan even if no major gesture was made by Islamabad to facilitate his visit. Officials are however watching the moves of Pakistan leader General Musharraf very closely amid signs that he was trying to help the US on terrorism issues including talking to the Taliban leaders about Osama bin Laden and arresting the main figure in the Indian hijacking, Maulana Masood Azhar, said to be in protective custody in Pakistan. "We haven't made a decision on the final itinerary yet," Clinton told reporters. "I want to make a trip which maximizes the possibilities not only for constructive partnership for the US in the years ahead but even more urgently for peace in that troubled part of the world." The President said the potential for conflict between India and Pakistan was far greater than is commonly understood. "It has enormous implications for people in the US and throughout the world, more I suspect than most people know," he said. "I hope in the time that I have here that we can make some progress because it is something that I remain profoundly concerned about for years and years into the future," he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- No immediate plan to repatriate stranded Pakistanis ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 9: The government has no immediate plans to repatriate stranded Pakistanis from Bangladesh, the spokesman for Cabinet Division (CD) said on Wednesday. At a press conference, Zafar Iqbal, the spokesman for the CD said the Cabinet Division had not received any direction regarding the repatriation of the stranded Pakistanis. He was addressing the press conference under the directive of Chief Executive Gen Pervez Musharraf to meet the press at regular intervals. The official, however, had nothing special to tell the press. He spent most of time in explaining how many departments were under the Cabinet Division. When asked to explain the function of these departments, the spokesman said the Cabinet Division coordinates and sends directives of the cabinet to relevant provincial governments and departments for implementation. To a question, he said the chief executive had issued a total of 68 directives to different ministries and departments so far. Out of those, three directives had been implemented while the others were in process. When asked what was the difference between the present military government and the deposed government of PML, he said the present government was holding cabinet meetings regularly while in the past it was not the practice. He said that a department of the Cabinet Division was carrying out an exercise about the size of different departments. When asked to give exact information about the down sizing of the government departments, he said, he had no exact information. To another question regarding use of CD vehicles by the different departments, he said he had no exact information about the use of Cabinet Pool transport. He, however, said that the Cabinet Division had six helicopters at the moment. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000209 ------------------------------------------------------------------- Corruption: seven FIA officials dismissed ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 8: The director-general of the Federal Investigation Agency (FIA) has dismissed seven officials and issued show cause notices to 11 others. In its on-going drive to purge the agency of corrupt elements, the DG has also recommended to the interior ministry that seven of the FIA's senior officials be made officers on special duty. The dismissed officials are: Rai Abdur Razzak, Munir Akhtar Shah, Noor Nabi Leghari, Riaz Ahmad (all inspectors), Mohammad Yousuf, Mohammad Yasin and Javed Khan (constables). Show cause notices for the dismissal from service were issued to Mohammad Masud Iqbal, Mazhar Hussain Gardezi, Azizullah Shah (inspectors), Mohammad Daud, Anwarul Haq, Ghulam Murtaza Bajwa, Manzar Hussain, Mohammad Ismail Hungra (sub-inspectors), ASI Arshad Nawaz, Head-constable Mirza Mubarik Beg, and Constable Tahir Javed. Those recommended to be made the OSDs include Chaudhry Sharif and Riaz Sheikh, both deputy directors of the FIA where they are known for their influence. At present, Mr Sharif is under the custody of the National Accountability Bureau. Both Mr Sharif and Mr Riaz were once suspended by the then DG, Khawar Zaman, but within months they succeeded in getting Mr Zaman removed and got themselves reinstated during the PML tenure. Mr Sharif even got out-of-turn promotion. Besides them, assistant directors Mushtaq Ahmad, Subah Sadiq, Ali Qaswar Bukhari, Mohammad Malik and Kamran Ataullah have also been recommended to be made the OSDs. Interior ministry sources admitted that it was a challenging task to uproot the corruption mafia from the FIA. The Federal Investigation Agency chief, who has been asked to make the FIA a really effective and neutral organization by March, is taking various initiatives to achieve the objective. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- Benazir says Pakistan is in turmoil ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 9: Former prime minister and PPP Chairperson Benazir Bhutto has said Pakistan is in turmoil which threatens the stability of the whole region. She was addressing "The women in leadership" conference held in San Francisco on Monday. "Today, the long shadow of the military falls over the destiny of 140 million Pakistanis" she said and added that "one simple basic fact is clear - Pakistan is in turmoil and with it the stability in the region is threatened." She said: "Pakistan is no ordinary country. It is a nation that detonated six nuclear devices last spring. It has fought three wars in the last 50 years of its history. It nearly went to war last summer over the frozen wastelands of an area called Kargil. It is a country of desperately poor people rich in weapons of mass destruction. It is a country where powerful drug lords undermine civil rule when faced with extradition. It is country fiscally bankrupt which refuses to live within its means. It is a country where men still kill women in the name of male pride." She said "these contradictions, so severe, threaten to suffocate the state itself", and added that the Pakistanis yearned for the restoration of their right to elect a government of their choice. She said US members of Congress and Assistant Secretary of State Inderfurth had recently visited Pakistan and urged restoration of civil rule there. "The state department deplored the recent 'Order' facing sitting judges to sign loyalty to the military rule as contrary to the general's pledge when he took power to respect constitutional and human rights. The visit of the US delegations demonstrateshow leadership has changed in the 20th century. Leadership is no longer confined to national boundaries or to state governments," she said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000212 ------------------------------------------------------------------- Price issue deferred: Provinces wheat quota enhanced ------------------------------------------------------------------- Rauf Klasra ISLAMABAD, Feb 11: The federal government on Friday revised the wheat distribution formula among the provinces from the existing 124kg/person annually to 150kg/person in the light of the 1998 census. The decision, raising the country's total requirement from 18 to 20 million ton wheat in 2000, was taken at an inter-provincial ministerial meeting held here with Federal Agriculture Minister Dr Shafqat Ali Shah Jamote in the chair. The meeting also decided to distribute 500,000 wheat imported from Australia among Sindh, Balochistan and the NWFP to meet their earlier demands for additional wheat. Last week, Mr Jamote had indicated that the wheat consumption formula would be increased form 124 to 140kg/person. Talking to newsmen after the meeting on Friday, he said the proposal of 140 was increased to 150kg/person after conducting a study of age group-wise annual consumption in the light of the '98 census. He expressed the hope that the production target would be increased in accordance with the revised requirement. Giving details of the age-wise consumption formula, the minister said it was calculated that the children up to 4 years, whose number is 19.67 million, consumed 17kg/person annually. About 21 million children of 5-9 years consumed 50kg/person. Nearly 72 million people in the main age group consumed 175kg/per person and 4.62 million people above 65 consumed 125kg/person. Thus, the minister said, after meeting the requirement of Azad Kashmir, northern areas, strategic reserves, and Afghanistan, the total consumption requirement came to 20 million ton wheat a year. The additional 2 million wheat would be distributed among the provinces from next financial year. He said the other problem which needed to be addressed was the removal of faults and irregularities in the distribution system. He claimed that Pakistan would export the commodity instead of importing it if all those faults were removed. He pointed out that the federal government procured only 6 million ton wheat every year while the remaining of the required amount was either procured by the provinces or the private sector. But, he said, every province thought that the federal government must fulfil its needs. He identified the NWFP and Balochistan as wheat deficit provinces and said Sindh and Punjab were producing surplus wheat and were providing it to other provinces as well. He said the wheat production in Sindh could be improved significantly by taking some measures on the farming side. He said Pakistan had so far imported 1.6 million ton wheat, adding that the government had decided not to import more wheat. To a question about existing stocks in the provinces, he said that at present the country had 300,000 ton wheat which was sufficient to meet the food requirements of the provinces till March when the wheat harvesting season will start in Sindh to be followed by Punjab in April. Thus, he remarked, there was no need to import more wheat. He elaborated that at present Punjab had 1.5 million ton wheat in its godowns, Sindh 189,000 tons, while the NWFP and Balochistan had 0.05 million tons each. He said the withdrawal of subsidies on wheat was under consideration. He said the government had realized that the benefits of subsidy were being exploited by the flour mills owners as they were not passing this facility to the consumers. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000207 ------------------------------------------------------------------- Foreign legislators briefed: India increases LoC violations ------------------------------------------------------------------- CHAKOTI (LoC), Feb 6: The United Nations Military Observers Group for India and Pakistan (UNMOGIP) , has recorded 3,388 violations of the Line of Control (LOC) by India during the last four years, from 1996 upto 1999. This was stated by the Commander of Chakoti Sector of Pakistan Army, Brigadier Khalid Nawaz, while briefing foreign delegates about the current situation on the LoC. The delegates included journalists, historians, writers, broadcasters and parliamentarians from Saudi Arabia, Switzerland, Sri Lanka, Nepal, China, Bangladesh, and Indonesia. Giving yearly break-up of the LoC violations by India, he said during 1996 there were a total of 1,990 violations.In 1997, although, the violation rate remained considerably low, yet the Indians started firing heavy mortar shells and guns. During the year, there were a total of 731 recorded violations. During 1998, the LoC violations were recorded at 350. In 1999 again, the LoC violations escalated with the figure touching 517 mark. Due to lack of resources and manpower, the UNMOGIP records LoC violations through various means and sources, Khalid said. The data collected for four violations is considered to be one, he added. So, he said, the UNMOGIP-recorded figures could reveal the actual figures. Referring to the casualty figures of civilians, he said 63 people were killed and 226 others were injured in 1997. During 1998, the fatal casualty rate rose to 115 with 442 injured. During 1999, the toll was recorded at 165 with 579 injured. Regarding the intensity of firing during 1997, Brig Khalid said that over 23,959 rounds of various calibres were fired by the Indian Army from across the LoC. In 1998,39,983 mortar- gun and other heavy artillery rounds were fired. (APP) DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- PIA asked to prepare revamping plan ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 10: The high officials of the Pakistan International Airlines Corporation (PIAC) have been directed by the government to formulate a comprehensive plan for revamping the organisation. Minister for Finance Shaukat Aziz chaired on Thursday an important meeting and directed the PIA officials to make the Corporation profitable by implanting a well thought out revamping programme. The PIA Chairman and the Managing Director were present in the meeting. Official sources told Dawn the finance minister has sought a proposal from the PIA officials to have a turn around in the Corporation. He was given a presentation about the current state of affairs in the PIA. This was the second presentation given to him. The minister asked the officials to consider the cost efficiency and find out profitable international routes so as to remove its financial problems. The minister, sources said, was told that due to increase in the fuel cost, PIA 's profit has reduced and that things were needed to be improved. The possibility of offering some golden handshake was also discussed. Although the government has no plans to go for rightsizing in the PIA, it has reportedly been recommended to 'shed the extra fat' with a view to make it financially and administratively viable. 'Then the minister asked the chairman and the M.D to do some urgent cost cutting in the Corporation', a source said adding the minister also directed the officials to remove financial irregularities and told them to 'put the house in order' so that by next year there is a turn around in the corporation. The sources said the government has been advised to seriously look into the issue of hundreds of political appointments made in the PIA during, both Nawaz Sharif and Benazir governments. However, the chief executive did not agree to remove them from jobs without providing them any alternative. But Gen Musharraf sources said, was of the view that PIA could not only maintain the present level of jobs but could have more provided, it was reorganised on modern lines. It was in that backdrop the minister chaired a high level meeting and issued directives to the officials for making the Corporation profitable. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- GDA against change in Constitution ------------------------------------------------------------------- Reporter KARACHI, Feb 10: Component parties of the opposition Grand Democratic Alliance at this stage do not favour initiating any movement against the military regime whom they have warned against any amendments to the 1973 Constitution and rejected the ongoing accountability process. However, the leaders do not rule out a movement whenever the people are ready. This was stated by Makhdoom Amin Fahim, PPP vice chairman on Thursday while briefing newsmen about the decisions taken at the GDA meeting at Bilawal House a day earlier. The GDA leaders were able to set aside the objections of the Pakistan Tehrik Insaf but divergent views persisted on the methodology of restoring democratic dispensation and on the question of challenging the NAB and other "draconian" laws. The Makhdoom of Hala, who was flanked by Syed Qaim Ali Shah, Khalid bin Walid, Haji Adeel, and other leaders of the GDA said the alliance was unanimous on any move by the regime to change the Constitution. "We will not accept any outside parliament change in the Constitution," he said. Through an unanimous resolution adopted at the meeting the GDA pledged to struggle for the protection and preservation of the Constitution. It also warned the regime that any attempt to "tamper with the will of the people is fraught with danger to the federation, any amendment to the Constitution must be translated into legislation through the provisions of Articles 238 and 239 of the Constitution." Abrogation of the Constitution would not be acceptable and the struggle for the restoration of democracy will continue, Makhdoom Amin Fahim told a questioner. The GDA recalled the vicissitudes and tribulations that had engulfed the Constitution-making process where the "will" of the people had been denied by the vested interests in their endeavour to keep the decision-making process away from Parliament. In this exercise the nation saw two Constitutions; each abrogated by its author, it maintained. The GDA resolved that the "Constitution of 1973 was a document reflective of the struggle of the people for a federal parliamentary democracy, fundamental rights and the rule of law. It is born from a collective national consensus of all political parties and the federation, unanimously passed by Parliament competent in law and exercising its powers and authority vested in it by the people. Asked whether the GDA supported the PML demand that the army should return to the barracks, Makhdoom Fahim said: "We have been demanding return to democracy as soon as possible which would, in turn, result in the return of the army to the barracks." The meeting was of the view that the democratic process had been derailed, democratic and the institutions of the State had been weakened, provincial autonomy denied, fundamental rights violated, sectarianism had been fanned, and horizontal and vertical divide in society was pronounced.
=================================================================== BUSINESS & ECONOMY 20000212 ------------------------------------------------------------------- Action plan needed to reduce debt burden: SBP ------------------------------------------------------------------- By Our Staff Reporter KARACHI, Feb 11: The State Bank has urged the need for putting in place an action plan for ensuring payments of rescheduled foreign debts starting next year and reducing the burden of these debts as such. The warning is contained in the second quarterly SBP report on the state of economy for the year 1999-2000. The State Bank Board of directors that met here on Friday approved the report. Governor Dr Ishrat Husain was in the chair. The report will be out on Saturday. "Slow down of the economic activity witnessed in the last year continued during the current year," says the report highlights of which were released to the press by the SBP. "Long term prospects for sustainable growth are not obvious yet as the structural problems still persist," said an SBP press release quoting from the report. "There are no signs of improvement in private investment. Public investment is also constrained by budgetary considerations." The SBP report warns that trade deficit will exceed the target for the year due to larger than expected imports. It says though pressures on external sector have eased by rescheduling of debt owed to Paris and London Club "an action plan needs to be put in place for payments beginning January 2001 and to reduce the debt burden." Nevertheless there are some indications of a turnaround. This is reflected in higher industrial and agricultural output and increase in imports of industrial raw material and an upward trend of the stock exchange activity. This is also reflected in lower inflation that stood at 3.4 per cent (measured by consumer price index) on an annualized basis during the first half of fiscal 199- 2000. The SBP report says that industrial production judged on the basis of 25 major industries rose by 9.3 per cent during July-December 1999 compared with a decline of 0.1 per cent in the same period last year. "Industrial sector especially the cotton-based industry has picked up its momentum mainly due to good cotton crop, lower cotton prices and lower interest rates," says the SBP report. It links the improved performance of the agricultural sector to a good cotton crop and lower cotton prices plus lower interest rates. It says while the production of cotton and rice have exceeded the targeted levels the production of sugarcane has registered a significant shortfall. "It is too early to venture any estimates for wheat production although given the timely rains and increase in procurement prices production of wheat should be around the targeted level." The report says there are indications of improvement in tax revenue that may lead to achievement of the revenue target this year. But the outcome on fiscal deficit will depend on whether the government is able to contain its non-development expenses including interest payments. The report says inflation measured by CPI fell to 3.4 per cent in the first half of this fiscal year from 6.5 per cent during the same period last year chiefly because of slower monetary expansion and an stable exchange rate. It says that improved supply position and a decline in the prices of imports excluding that of petroleum products also held down inflation. The report says money supply increased only 2.7 per cent in the first six months of this fiscal year compared with a target of 9.4 per cent for the entire year and 4.7 per cent during the same period in 1998-99. The report attributes the slower rate of monetary expansion to slower expansion of credit to the private sector. "Net credit expansion to the private sector during July - December 1999 was Rs 28.7 billion" compared with Rs 56.6 billion in the first six months of the last year. The report says the pace of credit flow to the private sector remained slower due to "uncertainty during most part of the first six months and high real lending rates. It also links the slower pace of credit flow to the private sector to the drive against loan defaulters and a subdued demand for credit by the textile sector in the wake of low cotton prices. "The recent reduction in lending rates announced by commercial banks may not automatically translate itself into revival of investment unless access to credit is broadened to include small and medium enterprises," the report says. Commenting on the external sector, the report says that during July-December 1999 current account deficit, without official transfers, stood at $712 million compared with $1.593 billion in the same period last year. It attributes the fall in the current account deficit to an increase in net receipts under private transfers, a reduction in trade deficit and a marginal decline of deficit on services account. "The trade deficit narrowed to $947 million during July-December 1999 from $1.257 billion during July- December 1998." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- CE tells banks to expand loan base ------------------------------------------------------------------- Reporter KARACHI, Feb 9: Chief Executive Gen Pervez Musharraf asked the heads of banks and financial institutions on Wednesday to reach out to new borrowers, particularly those in rural areas and in small and medium-sized businesses. He told the bankers here at the State Bank that they must not stop disbursing credit because of fears of action by the National Accountability Bureau on the errors of judgment. "If you shirk from discharging your normal professional duties then it is not fair to take the refuge under the guise of fear of the NAB. We cannot simply stop taking decisions and paralyze the economy because some of the loans which we are going to make today may become sore at some point of time in the future," he said. "I will urge upon you to expand your borrowers base and extend credit to deserving small and medium enterprises," said the chief executive. He quoted some statistics to show that their borrowers base was narrow. "I have just been informed by the (SBP) governor that only 1.2 per cent of total borrowers get 76 per cent of total bank credit while 4 per cent get 83 per cent of the total bank credit. The remaining 96 per cent have only 17 per cent. Similarly, five major cities take away over 74 per cent of the total bank credit." He said "this excessive concentration of credit to a selected few among prime borrowers and large-scale enterprises, and that too in a few cities, has led to distortion of the economy. A few hundred large borrowers are responsible for default of more than Rs145 billion. This situation cannot be allowed to continue". Emphasizing the need to expand the borrowers base, the CE said that banks should not fear action by the NAB without any reason. "I have been told that the bankers, particularly at the second tier of hierarchy, have become very apprehensive that they might be taken to task by the NAB if loans decided upon by them later become bad debts." "Let me assure you that nobody should fear the NAB except for those who are corrupt, dishonest and (those who) indulge in malpractice knowingly for their personal benefits or for their families and friends," he said. "Those who are professional and honest but have made genuine and legitimate business decisions which later prove to be wrong for transparent and justifiable reasons have nothing to fear." The next issue the chief executive raised at the meeting was that of home remittances. "During my visit to the Middle Eastern countries I was told on many occasions that Pakistani banks take a lot of time to deliver (overseas Pakistani's) money to their families in Pakistan." "Even though the rate offered by Hundi-wallahs may be a couple of rupees higher, these patriotic Pakistanis are willing to send their remittances through official channels if the bank service was quick and efficient." The CE said he was aware that banks were working with the State Bank to expedite the delivery of home remittances. "I hope that the steps you are going to take will soon lead to an increase in remittances." He said that another point which had been agitating his mind...had to do with the inconvenience faced by the public in paying their utility bills. He said he had raised the issue with both the finance minister and the State Bank governor. "We should find sensible and easy ways of catering to the need of people in paying their utility bills. I would like you to pay particular attention in finding a solution to this problem," he said. "The overall service quality of banking system has to improve through better systems, automation and focus on customer needs, including both corporate and consumer - whether they are small, medium or large." Gen Musharraf said he was satisfied with the early results the country had in its economic sphere "but we still have a distance to travel". "The successful loan recovery effort, the completion of Paris and London Clubs rescheduling, the rise in stock market, controlled inflation, increased agricultural and industrial production and export growth are all indicators in the right direction," he said. "I am committed to a policy of self-reliance under which we should grow our economy, fight unemployment and reduce poverty," he said. The CE said bankers' role in meeting these objectives was extremely crucial "and I am sure you will live up to our expectations". SBP CHIEF: Speaking on the occasion, SBP Governor Dr Ishrat Husain said the State Bank and the ministry of finance were working hard to identify and induct professional managers of reputable integrity as heads of financial institutions. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000209 ------------------------------------------------------------------- Number of taxes to be cut to three: Shaukat ------------------------------------------------------------------- KARACHI, Feb 8: Finance Minister, Shaukat Aziz, has said that government has positive signs of improvement in the economy with an 11pc increase in exports. "Our ultimate desire is to reduce federal taxes only to three during this budget, if not than in the next and rationalize the remaining taxes", he said while addressing the CBR officers, Collectors and Senior officials of Customs at the Custom House on Tuesday. Noting that exports are rising and inflation still quite low, Shaukat Aziz said that our exchange rate policy is stable and the initial signs are very encouraging. He said the agriculture crop was very good and rather superb. He said with fixation of wheat price at Rs 300 per maund by the government, has yielded good results and the country expects a bumper crop. Pointing out that this would benefit the balance of payment, he, however, said that "we should not let these early indicators make us complacence". The economy's ultimate health and revival will get a spurt when ongoing structural reforms would be complete, he said. Describing smuggling and under-invoicing, Shaukat Aziz referred to the constitution of a committee and said smuggling has two major hazards - one revenue losses whereby goods are coming in without paying duties and secondly our industry is badly suffering. He said that in order to overcome smuggling there is need to enhance physical surveillance with the help of Law and Order Agencies on the one hand and strictly check sale of smuggled goods at the retail end after few months on expiry of amnesty time. Referring to misuse of bonded warehouses, he said government is thinking about very strict measures in this respect. He said in major cities certain bonded warehouses are theoretically for diplomats. The minister said the second area where a solution is being explored, relates to under-invoicing. This too is causing big revenue losses. He said rules and regulation may be there but actually these are being violated. Referring to the issue of exports, Shaukat Aziz emphasized that it is our life line. Pakistan's economy will progress only when exports will increase, and added, the Customs have played a major role in countries where exports have been increased. He pointed out that goods worth billions of rupees are lying at Karachi Port by no fault of the Customs or for whatever reasons. But it should be understood that foreign exchange spent on it had gone from Pakistan and their LCs too were opened by Pakistani banks which have been paid but the goods are lying idle here. Shaukat Aziz said that if these goods remain uncleared, these could be auctioned so that "dead assets" are reduced. For this purpose the Port Trust, Customs, Banks all will have to do something. The minister pointed out that bulk of government revenue is in the hands of CBR and organizations which are part of it. He said Pakistan's tax to GDP ratio is the lowest in the world with more emphasis on black and undocumented economy. Therefore the government is taking steps for documentation of economy. He said our tax net is also embarassing. It is very narrow with tax levied only on those who are already in the tax net whereas it needs to be expanded. He told them that if they ask from the common man and name the customs, the impression they would get is very negative and perhaps after the police, the Customs is the most dreaded department. As regards the reports about right sizing in the CBR, the minister pointed out that this is being done in all government departments and not exclusively in CBR.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- New package for oil exploration shortly, says Aminuddin ------------------------------------------------------------------- ISLAMABAD, Feb 9: A detailed plan will be submitted to the Balochistan Government on exploration activities shortly, Minister for Petroleum and Natural resources,Usman Aminuddin, said. He termed his recent meeting with Governor Balochistan, Minister for Interior and Corp Commandar Quetta as "very useful". Usman Aminuddin has said that natural resources of almost 10-14 TCF gas could be found in Balochistan and likely to generate additional revenues upto Rs. 208 billion during the life of the fields stretching over 28 years. The Minister said Balochistan Province could collect additional revenues upto Rs. 7 billion per year in the form of royalties and excise duty. The minister said the development plan for Balochistan would be evolved in consultation with concerned authorities and the people, in which development of the areas and people's welfare would be on top. He further said that highly perspective areas in Balochistan were under force majeure due to tribal interferences, with a negotiated settlement .It was estimated that The provinces currently receiving Rs. 640 million in the form of royalties. The Minister also paid a surprise visit to the Headquarters of the Geological Survey of Pakistan. This was an unscheduled visit and hardly any staff out of the 600 was present. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- Hubco's net profits plunge ------------------------------------------------------------------- Reporter KARACHI, Feb 9: The net profit at Hub Power Co Ltd (Hubco) for the six months to end-Dec '99 plunged 11.7% to Rs 2,916m, from Rs 3,304m for the corresponding period of the previous year. The results announced by the directors from Dubai on Wednesday, evidenced scars of the nineteen month old lingering battle with the Government on issues ranging from alleged corruption to high tariff. The company skipped an interim dividend, citing adverse cash flows, resulting from mounting dues from Wapda, as the reason. For several days now, the market was all braced up to receive a gloomier bottomline, yet the share in the company settled 30 paisa down at Rs 27.45, from the overnight level with some 60m shares changing hands on Wednesday. Turnover for the half year was recorded at Rs 10,176m, 4.1% higher than Rs 9,767m in the similar six months of '98. Directors report released simultaneously, stated that the turnover was based on amounts billed to Wapda in accordance with the Power Purchase Agreement (PPA). The report went on to state that the accounts included a sum of Rs 2,423m, which had not been paid by Wapda. Hubco chief executive, S.K.Husain, who signed the directors report, cautioned: 'In the event that these amounts are not paid, this would result in a reduction in the net profit by approximately Rs 2,423m to Rs 493 m'. Directors also noted that trade debtors included Rs 11,250m 'which is either disputed or not paid by Wapda for which no provision has been made by the company'. An equity analyst at a foreign brokerage house, who asked not to be named, said that it made no sense to interpret the results in the face of such colossal sum in dispute. 'The numbers mean nothing until the tariff row is settled', said this analyst. Also, he said, it would have to be seen if any settlement, which hopefully may eventually be reached, is made with retrospective effective or only on future power purchases. In the latter eventuality, the company would be forced to write off the huge sums due from Wapda and that would send all analysts' forecasts into a tailspin, he said. Given the extent of uncertainties surrounding the IPP, many analysts consider it imprudent to place a 'fair value' for the Hubco stock. Based on the July-Dec '99 annualised earning per share (eps) at Rs 5.02 (half year: Rs 2.51), the share is trading on the price-to-earnings (p/e) multiple of 5.4. On the positive side, many analysts believe that the Government is intent upon resolving the dispute with the IPP and they hope for an outcome within the next three-four months. The directors, meanwhile, continued to reiterate their old stance. In the half term report, they observed that the company had been the subject of investigation by the FIA and the government appointed auditors. Directors 'strenuously denied any wrongdoing' on the part of the company, which they said continued to 'defend itself vigorously'. Directors also said that the company 'continues to seek an amicable resolution of its dispute with Wapda in an atmosphere of mutual respect and co-operation'. As regards the operating efficiency of the 1,200 MW oil-fired power plant, directors said that 2,268 GWh of electricity had been generated during the half year under review, which was claimed to represent 'very high thermal efficiency rate' of 37.3%. Operating costs for the period under review were seen to have increased in proportion to the improvement in turnover so that the gross profit edged higher by 4.2% to Rs 5,150m and the gross margin remained static at 50.6%. Selling, general & administrative expenses amounted to Rs 247m, reflecting a hefty rise of 52% from Rs 163m in the earlier similar period. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- CBR axes 1,016 IT posts ------------------------------------------------------------------- Correspondent ISLAMABAD, Feb 10: The Central Board of Revenue has abolished 1016 posts in the Income Tax department at the CBR headquarters and nine major towns of the country. These abolished posts include that of a director general Withholding Tax Organisation in BS-21, says a CBR press release issued here on Thursday. It announces that the office of Income Tax commissioner Appeals (VII) at Karachi, has been closed down. The decision has been taken in pursuance of rightsizing of the CBR headquarters and its field offices, and the abolition of the posts continues. The rightsizing process is likely to be completed in a couple of weeks, it says. The CBR had already axed 976 posts of the Customs department last month. In the CBR headquarters, the posts of Chief Wealth Tax, Chief Income Tax Education, four posts of IT secretaries in BS-19, another four posts of second secretaries in BS 18 and 17, have also been abolished. In the field, 64 circles manned by IT deputy commissioners in BS-18 and IT officers in BS-16 have been wounded up in Karachi, Hyderabad, Sukkur, Quetta, Multan, Lahore, Faisalabad, Islamabad and Peshawar. Another six posts of BS-20, 12 posts in BS-19, 76 posts in BS-10, 17 and 18, and 922 pots in BS-1 to 12 also stand abolished. The CBR has also axed 20 posts of Withholding Tax Organisation, three directors in BS-20, eight posts of additional directors in BS-19, and nine posts of deputy directors in BS-17 and 18. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000210 ------------------------------------------------------------------- US eases controls on export of computers ------------------------------------------------------------------- Correspondent WASHINGTON, Feb 9: The US has announced further liberalization of controls on export of sophisticated computers to Pakistan and India, officials said. The President has issued a notification, raising the individual licensing levels for computers with processing speeds from 6,500 to 12,500 MTOPS for military end-users and from 12,300 to 20,000 for civilian end-users. Likewise, a senior Commerce Ministry official told a conference in California that decisions had been taken to restore licence exception for computers for India and to move from a presumption of denial to a presumption of approval for entities still under sanctions. Regulations to that effect will be published very soon, Bob Majak, Assistant Secretary of Commerce, said at the annual conference on export controls and policy at La Jolla in California last week. The President's notification made some changes in the list of countries designated as Tier-III states in which India, Pakistan, all Middle East/Maghreb, the former Soviet Union, China, Vietnam and Central Europe are included. "The President's decision announced on Feb 1, will maintain the current two-level system for civilian and military/proliferation end-users. "The decision will raise the individual licencing levels from 6,500 to 12,500 MTOPS for military end-users and from 12,300 to 20,000 MTOPS for civilian end-users." The Commerce Department will immediately raise the licencing level for civilian end-users and will raise the licencing level for military end-users in six months. Given anticipated significant increases in individual micro- processor performance in the near term, the Administration will review these levels by April to determine if further adjustments were warranted, the announcement said. The Under Secretary of Commerce, Mr Reinsch, told the California conference that India, Pakistan and China were the obvious examples of countries where the US export control regimes had been less successful. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000206 ------------------------------------------------------------------- Bank of Khyber to invest in leather sector ------------------------------------------------------------------- Bureau Report PESHAWAR, Feb 5: Bank of Khyber has decided to invest in the leather sector of the province and in this connection it will raise funds for establishing a raw material store in Charsadda, sources told Dawn. The BoK and SMEDA (NWFP) will jointly prepare the required feasibility report, work on which will soon be undertaken, sources said. BoK's decision to make investment in the sector was conveyed to SMEDA in a meeting held recently between the representatives of the two organizations. 'The amount to be raised for the raw material store will be known after the availability of the feasibility report,' said a SMEDA official. BoK will extend credit facility to small and medium enterprizes to help them improve leather products quality. The proposed raw material store at Charsadda will be the first of such stores in a chain to be set up in different places to facilitate the sector. Charsadda's selection appears obvious for its being the major centre of traditional 'Charsadda Waal Chapli' produced in large number every year. The product enjoys high demand in the entire country and abroad, especially in the middle east where a larger number of people belonging to NWFP live. To promote the Charsadda leather products, the provincial government, Export Promotion Bureau and Federal government recently decided to establish the a training centre at Charsadda. Federal government will provide a sum of Rs 50m for the proposed leather centre whereas the NWFP government will provide a piece of 32 kanal land on theCharsadda-Mardan road. The project pertained to the days of the last government. However, a final decision to this effect was taken in a high level meeting, chaired by the federal industries minister Abdul Razaaq on Jan 12. The Rs50m sanctioned for the construction of the building will be provided from the Export Development Fund. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000212 ------------------------------------------------------------------- Wapda blames Sindh for big default ------------------------------------------------------------------- Sabihuddin Ghausi KARACHI, Feb 11: The Sindh province is on the top of Wapda's list of defaulters, with a total accumulated liability of over Rs16 billion. It is almost 26 per cent of the total amount of over Rs62 billion that Wapda should have recovered from all its consumers by the end of 1999. Its consumers are private citizens, federal and the provincial government agencies in all parts of the country except Karachi. This amount includes Wapda's unpaid bills, with Sindh, of Rs1.87 billion during July-December 1999. More than Rs14 billion was to be recovered from Sindh by Wapda till June 1999 which, according Manzoor Sheikh, member, finance, Wapda, is the accumulated liability since 1997. "We do not agree with the federal arbitrator's award on our billing dispute with Sindh," Manzoor Sheikh said at a press conference on Friday he held with another Wapda official, Javed Nizam, at the KESC office. Responding to a question, he said Wapda's position was that the billing disputes with Sindh had been reconciled till 1997 and the arbitration was needed in the disputes that arose beyond that period. He said Wapda's contention was that by bringing the billing dispute since 1992 under the arbitration proceedings, the arbitrator had gone beyond his mandate. Wapda had now filed a petition in a civil court against the award. Javed Nizam, the general manager, finance, claimed that the bulk of Wapda's billing amount with Sindh was based on meters while a small amount pertained to defective meters and extended connections. A statement circulated by the Wapda officials at the press conference on Friday mentioned the Karachi Electric Supply Corporation (KESC) as its only client in Karachi. The KESC has to pay it about Rs7.5 billion for the electric power that it imports from the Wapda system to offset its gap in its generation and consumption demand. During six months - July to December 1999 - Wapda's power supply to KESC was worth over Rs3.2 billion. "Wapda has made substantial contribution towards the economic activities in Karachi and in keeping your lights on," claimed Manzoor Sheikh who addressed the local newsmen to inform them how Wapda had helped to control the loadshedding and power breakdowns. Responding to a question, he claimed that Wapda provided electricity to the KESC at Rs3.19/kwh, which was worked out after adjusting transmission losses from the generation cost, both thermal and hydel, at the point from where it was supplied to the KESC system. "We are not making any profit from the electricity supply to the KESC," Wapda's member of finance said and explained that the tariff had been worked out with the consent of Nepra, an independent agency. Calling receivables a "tricky area", the Wapda officials said this included a sum of Rs21.57 billion from the private consumers in all parts of the country, over Rs2 billion from the defence, Rs4.90 billion from the Azad Jammu and Kashmir government, Rs4.51 billion from Punjab, Rs873 million from the NWFP, Rs503 million from Balochistan, Rs3.24 billion from the FATA and Rs5.49 billion from the tubewell operators in Balochistan. He disclosed that the government was considering a Wapda proposal that could allow the Authority to import furnace oil directly. He said Wapda was the single largest consumer of furnance oil and its purchases from the Pakistan State Oils was worth one billion rupees a month. Responding to a question about the dispute with the IPPs, particularly with Hubco, Manzoor Sheikh said Wapda had proposed early December to bring down the levelized tariff rate to 5.46 cents. Hubco's proposal is to bring this rate down from 6.86 cents to 6.5 cents. "Since the day the proposal was offered, Hubco has not come back," Manzoor Sheikh said, and added that the average tariff rate with other IPPs was 5 cents. In a few cases it was less than 5 cents. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- ADB to start $490m new lending programme ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Feb 10: The Asian Development Bank (ADB) will provide another $490 million to Pakistan for five projects to be undertaken in 2000, in addition to $267.9 million, already sanctioned for existing programme. "We have discussed and agreed with the Pakistani authorities to start a new lending programme of $490 million which includes $290 million ADB's soft loan window under Asian Development Fund (ADF) and $200 million under Ordinary Capital Resource (OCR) facility", said the head of the visiting Country Programme Confirmation Mission Bruce Carrad. Briefing a group of reporters here on Thursday, he also said that ADB has decided to offer substantial funds for poverty alleviation in Pakistan. "In fact our 40 per cent assistance will be available for poverty reduction". He said that ADB operational focus in 2000 will be on undertaking series of studies on poverty reduction to provide a clear strategy for Bank's long term involvement and broadening and deepening portfolio management practices to improve governance. Also the purpose was to strengthen poverty impacts of ADB's assistance, encourage reforms and continue to support province-based interventions to promote decentralization. He pointed out that the agreed lending programme to Pakistan for 2000 was $490 million in addition to a Power Sector Restructuring Programme of $267.9 million and 15 technical assistance projects for total of $12.9 million. Giving details, Carrad said that new lending has been agreed for five projects to be undertaken during 2000. The Second NWFP Barani Area Development Project which will cost $40 million was being designed to improve social and nutritional well-being of the rural population, including women.The main components of the project include agriculture, rural roads, community infrastructure, rural credit and community organization. Punjab Water Resources Sector Development Programme will cost $150 million and will be for supporting policy and institutional arrangements for sustainable management of Punjab's water resources, and to rehabilitate and improve the Marala-Ravi Link Canal System. Then, he said, NWFP Urban Sector Development Project will be undertaken at a cost of $70 million. The project would cover upgrading of water and sanitation facilities, roads, drainage, solid waster management, slums, the promotion of guided land development and housing schemes, and strengthening the provincial and local government institutions. Non-Formal Education For Rural Women project will be designed to improve delivery of non-formal educational programmes, provide micro credit and social development components including institutional capacity building and community participation. The project will cost $30 million. Foreign Currency Import Finance Facility which will cost $150 million was a project which was a part of ongoing Trade, Export Promotion and Industry Programme (TEPI). The project will provide assistance to the small and indirect exporters for foreign exchange requirement relating to exports. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- Cabinet body okays shipping policy ------------------------------------------------------------------- RAWALPINDI, Feb 10: The Cabinet Committee on Ports and Shipping Thursday approved in principle, the Shipping Policy - 2000. The Committee, which met here with Chief Executive General Pervez Musharraf in the chair, also approved in principle, the Merchant Shipping Ordinance - 2000. The Committee directed that the Shipping Policy and Merchant Shipping Ordinance be presented to the Federal Cabinet for approval and promulgation. The meeting of the Cabinet Committee was held in light of the decision taken at the joint session of the National Security Council (NSC) and the Federal Cabinet on Jan 5. The meeting reviewed the prioritization of existing developmental and operational plans in the sectors of Ports and Shipping. Secretary Communication, Dr Akram Shaikh apprised the participants about the plans, priorities, implementation strategies and recommendations in Ports and Shipping with the aim of maximizing output, facilitating trade and minimizing wastage. With regard to the Shipping Sector, it was decided that in addition to the Public Sector, the Private Sector would also be encouraged to play its role in a competitive atmosphere.-APPBack to the top
=================================================================== EDITORIALS & FEATURES 20000211 ------------------------------------------------------------------- The best in Pakistan ------------------------------------------------------------------- Ayaz Amir THE best in any country is the fire and enthusiasm of its people. The best in Pakistan has never been the property of its mandarins, political bosses and men in uniform. It has been the preserve of those who, despite the odds, have held aloft the torch of freedom. Pakistan was not always the graveyard that it now increasingly resembles. Even in the most stifling dictatorships intrepid and often romantic souls were to be found who believed in democracy and were convinced that if only elections were held the country's problems would disappear. The unsoundness of this belief should not detract from the honesty or idealism with which it was held. Fazlul Haq and Suhrawardy - by today's depressing standards these two figures from the gloom of the past appear almost like political titans. Later in East Pakistani there appeared Maulana Bhashani, the closest thing to a political firebrand we had in those days. The country's tragedy of course was that the poverty of the political element in West Pakistan ensured that even in Jinnah's first cabinet (a point often ignored) the equilibrium was already shifting towards the representatives of the mandarin class: Ghulam Muhammad and Chaudri Muhammad Ali. Behind them in the shadows stood the sinister figures of Iskander Mirza and Ayub Khan, both destined to leave their baleful imprints on the country's history. Unless they turn to books (a fashion on the wane in Pakistan) youngsters of today have no way of knowing the all-embracing nature of Ayub Khan's dictatorship. The old political leadership epitomized by such figures as Daultana, Khuhro, Gurmani, Qayyum Khan, Suhrawardy et al, (admittedly not all angels) was consigned to oblivion. A new political structure was raised based upon the system of basic democracies. Far from being autonomous, this system was completely under the heels of the bureaucracy, then more powerful than at any other time in the nation's history. Nowadays much is made of the economic successes of the Ayub regime, mostly by economists whose expertise in their own discipline is often not matched by their understanding of politics. Economic development may have taken place in the Ayub era but the totalitarianism which was the hallmark of that regime left the country impoverished in spirit.And yet, despite the oppressive nature of the Ayub regime, the cause of freedom was kept alive by a political class (so different from today's) which had almost a childish belief in the merits and efficacy of democracy. It was kept alive also by a cadre of political mavericks like Agha Shorish Kashmiri (than whom a greater orator I have never heard) and the quintessential rebel poet, Habib Jalib. Once at the YMCA Hall in Lahore (this was in 1966) I heard Agha Shorish speak. If not the hall at least my heart was set on fire. As for Jalib, his moment in the sun was the presidential election of 1964 in which Miss Fatima Jinnah was persuaded by a cabal of opposition politicians, including Mian Mumtaz Daultana, to enter the lists against Ayub Khan. The fervour to be seen in Miss Jinnah's public meetings was exceptional. There were other speakers too but the star performer was undoubtedly Jalib who would sway the crowds with his fiery poetry. He also looked the part of the revolutionary: blazing eyes and hair swept back to a full mane. Pakistan was a slower place then with little of the rush and noise which pass for progress these days. But in its soul there stirred a richer mixture of romance and idealism. But poetry and dictatorship resulted in a strange schizophrenia. At the top was the suffocation and stagnation produced by an autocratic regime, at bottom the restlessness of the disfranchized masses trying to give voice to their frustration and despair. We know what became of this turmoil: in the eastern wing the triumph of Shaikh Mujibur Rehman, in West Pakistan the success of another stormy petrel, Zulfikar Ali Bhutto. By that time power had shifted to another military saviour, General Yahya Khan. It could not have been a poorer or a more fateful choice. Incapable of understanding the complexity of events in which he was soon caught, Yahya presided over the greatest disaster in the nation's history: defeat at Indian hands and the loss of East Pakistan. But we seem to have a gift for reliving the past. Thirty years have gone by since the tempestuous events of 1971 and yet we are no closer to learning anything from experience. Lost once more on the desert sands and looking to the stars for hope and salvation, the nation's caravan is being led by another group of military enthusiasts who, even as they retrace their steps in the dark are vowing to create a brave new world. Before I proceed further with my tale, here is a piece of racism I want to share. Pakistan's best, brightest and toughest can show a hard face to the world but before foreign (white) journalists they somehow tend to let their defences down and say things that in more guarded moments they perhaps would not. Now whether this had anything to do with General Musharraf's expansive comments to Christina Lamb of the Sunday Telegraph I cannot say but connoisseurs of the unusual or the rare will have noted that it was in this interview that the General said two things: setting the country on the right path could take anything from five to 20 years and power in any case would not be returned to the likes of Benazir Bhutto and Nawaz Sharif. Voices timidly protesting that no time-frame was being given for the return of democracy should now be silenced. No time-frame could be clearer than this. Nor the contempt that comes through for the political class as a whole. But with or without Ms Lamb, the contempt for the political class seems to be one of the central tenets of General Musharraf's philosophy. Consider in this context what the attorney-general and law minister, Aziz Munshi, told the Nawai Waqt: Pakistan's politicians had now become a forgotten part of the country's history and they would only be remembered for their loot and plunder. With this analysis I have no quarrel at all except that plunderers in Pakistan have come in different garbs and to blame politicians alone is not only unfair but historically incorrect. Munshi has blamed politicians from the year 1988 implying thereby that in the Zia-ul-Haq era which came before that cutoff point everything bore a roseate hue. This is a travesty of history. Besides setting the country back many years, Zia wasted long-term opportunities for short-term goals. Indeed, the seeds of most of the country's current problems were sown during his rule. But who in the prevailing climate will listen to such reservations? The new philosophy we are being indoctrinated with proclaims that politicians are all scoundrels while men in uniform are knights in shining armour. That politicians have sinned and are corrupt admits of no doubt. But others have sinned with them and drunk equally at the trough of corruption. The imposing bungalows of Islamabad, Lahore and Karachi - edifices which mock the poverty of the Pakistani masses - are a testimony to that. They do not belong to politicians alone. In much the same way, no single section of the population or the ruling elites can claim sole proprietorship over wisdom and infallibility. The very notion is foolish. A little humility, instead of the growing arrogance on display, would be more useful. We need to start from the premise that Pakistan's failure is the failure of its governing class which includes, in equal measure, politicians, bureaucrats and men in uniform. Only when we accept this can we proceed further and agree that giving Pakistan a sense of direction and putting it on the right path has to be a national and not just a military endeavour if it is to have any hope of lasting success. The military is a part of the nation but not the nation itself - a distinction that would be considered elementary in normal times but one worth holding on to at a time when all sorts of new professors are working overtime to extend the frontiers of political theory. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000212 ------------------------------------------------------------------- The armies of the night ------------------------------------------------------------------- By Irfan Husain NATIONS do not normally have to strive consciously for a consensus on the kind of country they wish to be. Social and economic pressures and the consequent political decisions shape them over a period of centuries. But a relatively new state like Pakistan does need to conduct an internal debate over the path it wishes to take. Although the founding father of the nation, Mr Jinnah, pointed us in an unambiguously secular, progressive direction, he died too early to transform this vision into reality. His successors were too weak to pursue it effectively, and allowed this concept to be subverted to the point where it is but a distant memory. Whereas Mr Jinnah saw Pakistan as a homeland for the Muslims of the subcontinent where the minorities would be equal citizens, obscurantists and self- serving politicians hijacked this vision and transfigured our country into a cockpit of warring religious militias and a haven for terrorists. Indeed, what we are seeing today is a victory for a revolution by stealth. there has been no call to man the barricades, no stirring appeal to fight to the last man. And yet the political topography has been transformed beyond recognition over the last quarter century. Now if foreigners think of Pakistan at all, it is in the context of religious fanaticism, military juntas, heroin smugglers and illegal immigrants. From being a respected developing country that was making excellent progress, we have slipped into a sickly state which has brought it on the brink of bankruptcy. The irony is that this metamorphosis has taken place without a debate over the kind of country we wish to be. The previous issue of Newsweek ran a long story about Pakistan and the jehadi organizations operating on our soil. According to this report (which quotes active members of these militias as well as unnamed military and civil sources), militants are getting training here and conducting operations in Indian-held Kashmir. The report goes on to conclude that if this government were to crack down on these groups, most Pakistanis would rise in protest. Fortunately, this ominous conclusion is not justified by any objective yardstick. As we survey the political wreckage around us, the one positive element we see is the continuing and consistent refusal of the Pakistani electorate to vote for religious parties. For instance, all these parties put together only managed to gain a meagre six seats in the National Assembly out of a total of 210. While the majority of Pakistanis are practising Muslims, they are clearly not convinced that their many problems can be solved by leaders who want to drag the country back to the seventh century. Given the good sense displayed by Pakistani voters in election after election, the extremist tilt in our politics becomes harder to explain. Clearly, unlike the Iranian revolution, religious parties command no huge following of the faithful marching in the streets, calling for the imposition of a theocratic order. The reality is that a number of sects and leaders are vying to impose their versions of Islam on the national polity, and this multiplicity erodes their appeal and credibility. So while there has been no dramatic revolutionary movement to bring in the Shariat, what we have witnessed is the gradual, piece-meal reduction in the space for secularism. General Zia-ul- Haq, undisputed military dictator of Pakistan for eleven years, did more than anyone else to push us backwards. Edward Gibbon, the 18th century English historian, observed in his Decline and Fall of the Roman Empire: "All that is human must retrograde [this is the word used in the quotation] if it does not advance." When Zia and his many toadies blocked the path of social and intellectual progress in the name of religion, we began our long slide into chaos. Once this agenda had been set, weak politicians like Benazir Bhutto and Nawaz Sharif had neither the political will nor the gumption to take on the religious right that had been strengthened by Zia and provided with much largess by the state. Hardened veterans of the Afghan war provide the muscle and semi- literate graduates of religious madrassahs run by various fundamentalist parties are the foot-soldiers in the undeclared war against the state and its organs. Their sympathizers in clandestine government agencies and the media have given them covert and overt support to the point where they now set the national agenda, specially on Kashmir and Afghanistan. Ignorant leaders who have no understanding of global realities pressure the government to maintain a hard line on complex issues like the CTBT and talks with India. General Musharraf had raised early hopes when he took over in October last year that he would halt the tide of fundamentalism that threatens the foundations of the state. His public pronouncement of admiration for the secular Turkish leader Kemal Attaturk and his outwardly liberal stance made us think he might take a stand against the armies of the night. But in the four months he has been in power, the only positive action we have seen is the fact that the firebrand Maulana Azhar Masood has been placed under 'protective custody'. According to the Newsweek story, several of General Musharraf's colleagues are fundamentalist sympathizers and presumably would try and block any modernist, secular policies his government might wish to follow. As it is, several religious leaders have attacked the liberal tendencies of some of the civilian ministers and advisers he has appointed. The situation now is that the religious right has pre-empted the political high ground, and dissenting voices are silenced with the charge of apostasy as well as violence. To all intents and purposes, we are in free-fall without a parachute. Although the dangers of extremism are obvious to all thinking people in and out of government, they seem unable to act to prevent the disaster now facing us. They resemble a rabbit that is frozen into inaction in the headlights of an onrushing car. Clearly, our best interest lies in following a path of reason and moderation towards peace and prosperity. But perversely, our leadership has permitted the fanatics to divert us into wasteful and pointless confrontations that have bled the exchequer white apart from isolating us diplomatically. We cannot sustain such policies without becoming bankrupt. Ironically, at a time when the government is pursuing bank defaulters, we as a nation are on the verge of default at an international level. Speaking at a rally in Hamburg in 1936, the Nazi leader Herman Goering said: "We have no butter... but I ask you - would you rather have butter or guns? ...preparedness makes us powerful. Butter merely makes us fat." But the hungry would rather have butter; they are too thin to worry about calories.
=================================================================== SPORTS 20000212 ------------------------------------------------------------------- Saeed for separate teams for Tests and one-dayers ------------------------------------------------------------------- Reporter KARACHI, Feb 11: Pakistan captain Saeed Anwar on Friday called for different teams for Tests and one-day internationals. Talking to reporters here at the National Stadium during his team's opening training session, the left-hander said there were few senior players who can still deliver in Tests. "I think that it is time that Pakistan has separate teams. I haven't talked to the Pakistan Cricket Board (PCB) chairman about this idea but I will definitely try to convince him to implement it," he said. Saeed was named Pakistan captain on Thursday after Wasim Akram relinquished captaincy in an effort to concentrate more on his cricket and domestic commitments. He said when Australia initiated the plan of having different teams, the world was laughing at them and contesting their strategy. "But the results were delivered in three years as now they are the undisputed world champions of one-day cricket. "Players like Michael Slater, who can easily walk into any team, doesn't find place in the one-day squad because he doesn't qualify in the fielding standards the Australians have set for themselves," Saeed argued. He added that there were players in the Pakistan setup who are still very good at Test level. Without mentioning anyone's name, he said but those senior players may not be very sharp in the field for one-dayers. "That is why I believe that they should be played in Tests and youngsters play in one-dayers." Saeed, commenting on the newcomers, admitted that he hasn't seen them "but Aamir Sohail has played with them in the domestic circuit and speaks very highly of everyone who has been called for the first match." Saeed said he saw the spark and talent when the youngsters batted in the nets. But he stated that youngsters can't be groomed overnight. He said the players need sometime to settle and overcome international pressure. "I would like to use them (youngsters) in the entire series. And I will talk to the chairman of the PCB about it." The skipper said it was his and the senior players duty to give them the confidence and required tips so that they can cement their places in the team. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- Saeed Anwar to lead Pakistan against Sri Lanka ------------------------------------------------------------------- Samiul Hasan KARACHI, Feb 10: Left-handed opener Saeed Anwar on Thursday was named as Pakistan captain for the home series against Sri Lanka after Wasim Akram surrendered the job "in an effort to concentrate more on his cricket and domestic commitments" Wasim is just 17 wickets short of becoming the fourth bowler in Test history to claim 400 wickets. He already has a record 409 one- day scalps under his cap. Besides, Wasim has already informed the Pakistan Cricket Board (PCB) that he will not be available for Pakistan's return tour to Sri Lanka in June-July this year. Wasim has signed a contract with England television, Channel 4, as their expert commentator for the England series against Zimbabwe and West Indies. The Pakistan Cricket Board (PCB) not only appointed a new captain for the series, it also made drastic changes in the squad for Sunday's first one-day international against Sri Lanka. In the wake of Pakistan team's horrendous performance in Australia where it lost three Tests and six one-day internationals, the cricket administrators dropped all the five batsmen viz Ijaz Ahmad, Inzamam-ul-Haq, Mohammad Wasim, Wajahatullah Wasti and Shahid Afridi. Paceman Waqar Younis was not considered for selection because of his marriage while allrounder Azhar Mahmood was left out because of injury. Cricket officials named five uncapped players and recalled openers Aamir Sohail and Imran Nazir and paceman Shahid Nazir. Of the uncapped players, Faisal Iqbal, Yasir Arafat, Zahid Saeed represented Pakistan in the Youth World Cup in Sri Lanka last month. The other two rookies include 25-year-old Younis Khan of Habib Bank Limited (HBL) and 21-year-old Imran Abbas of Agriculture Development Bank of Pakistan (ADBP). Both are middle-order batsmen. Younis struck a brilliant 68 not out off 58 balls against Sri Lanka on Thursday after having come into the exhibition match with more than 1,100 runs in Quaid-i-Azam Trophy against his name. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000211 ------------------------------------------------------------------- Shoaib says decision vindicates his innocence ------------------------------------------------------------------- KARACHI, Feb 10: Pakistan pace demon Shoaib Akhtar on Thursday welcomed the International Cricket Council ruling that has left him free to terrify top batsman once more - and said he was looking forward to getting a good night's sleep. "I am overjoyed. I was banned wrongly but I am thankful to the Almighty and will get my sleep back," Shoaib told AFP. The ICC, in a landmark decision, said it had revoked the powers of its advisory panel to ban bowlers with suspect actions. The decision will automatically reinstate Shoaib in Test cricket. "I have lost my sleep although from inside I was convinced that I would play in Test cricket again," he said. "I knew I would be back to thrill the crowds the world over. I play for my country and to entertain the crowds." Shoaib is now hoping to develop as a better bowler with Nottinghamshire in the coming county cricket season. ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
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