------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 19 February 2000 Issue : 06/08 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + US official for coaxing Pakistan, India to sign NPT + India expels three Pakistan diplomats + Pakistan repulses attack on AJK post + Pakistan reaffirms policy of peace talks + No new licenses, says Moin: Ban on carrying arms from next month + Wheat quota: provinces to be consulted + Chief Executive issues order: Ex-lawmakers lose privileges + CIA terms Pakistan missiles threat to region + Sindh demands Rs700m from Centre for law & order + Arms carrying, display banned in Balochistan --------------------------------- BUSINESS & ECONOMY + GST at retail level from July: Shaukat + State Bank of Pakistan eases curb on lending to Modarabas + KSE 100-share index breaches psychological barrier + IMF team to review tax progress + CBR to probe Rs8.6m bribe case + GDP target may not be achieved: SBP report + 8 oil & gas companies given autonomy + Gold consumption at record high in Pakistan + Sales Tax department says agents cause delay in refunds + Downsizing of workforce announced --------------------------------------- EDITORIALS & FEATURES + From Washington Ardeshir Cowasjee + Swaying in the wind Irfan Husain + Rocket-like personalities Ayaz Amir ----------- SPORTS + Sri Lanka clinch one-day series against Pakistan + PCB plans to build strong team for World Cup + PCB empowered to decide Shoaib's Test ban: Tauqir + National snooker: Saleh and Yousuf joint top seeded
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20000218 ------------------------------------------------------------------- US official for coaxing Pakistan, India to sign NPT ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Feb 17: A senior US official said on Wednesday Pakistan, India and two other countries "deserve a coaxing" to bring them into the non-proliferation treaty (NPT). "The most serious threats in the most recent past have been in South Asia, where India and Pakistan have tested nuclear devices," John Holum, US Senior Adviser for Arms Control and International Security, told a news conference. The US intends to remain a leader in pressing for more nuclear arms control and is looking forward to a balanced NPT Review Conference in April that affirms the importance of the treaty for all countries around the world, he said. Holum called the NPT Review Conference, which will be held at the United Nations headquarters from April 24, "an extremely important international event." The review is the first since the 1995 NPT conference decided that the treaty should become permanent with periodic reviews held every five years. The United States has been underscoring three main points in the NPT review preparation sessions, he said. "One is that arms control remains vital as a security instrument for all countries in the world," Holum said. "Second, the United States intends to continue leading this effort despite setbacks, and we consider ourselves part of the international consensus in favour of further steep reductions in nuclear arms. "Third: Although, the pace of disarmament will be an important issue to consider in the context of the review conference, it is also vitally important that we all understand that the main reason the NPT was made permanent in 1995, and the main reason it remains so important now, is that it is a security instrument for all of its members," he said. Acceptance of the NPT "is not a favour by the non-nuclear weapon states to the nuclear weapon states," Holum said. The treaty "is an instrument by which the non-nuclear weapon states can avoid the costs and dangers of their own participation in a nuclear arms race, confident in the knowledge that their neighbours and rivals also are not pursuing nuclear weapons," he said. "It would be self-defeating for countries to jeopardise either their own relationship with the NPT or the NPT itself because they are dissatisfied with the pace of disarmament, because the treaty is valuable to them," he said. The 187 nations that have ratified the NPT "did not do so on the grounds that they liked what the United States and the other nuclear weapon states were doing. They did it because they saw a security value for themselves," Holum said. But he added for the conference to be "balanced", there must also be discussions on the benefits of the treaty, such as strengthened safeguards and the benefits of peaceful uses of atomic energy in such areas as health and agriculture. The United States also wants any discussion about the countries that are not members of the NPT regime to focus on all four countries - Cuba, Israel, India, and Pakistan - and not become a Middle East debate on Israel, he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000219 ------------------------------------------------------------------- India expels three Pakistan diplomats ------------------------------------------------------------------- NEW DELHI, Feb 18: India announced on Friday it was expelling three Pakistani diplomats, signaling a further deterioration in already strained bilateral relations. "The government has sought the withdrawal of these three officials by February 25," Foreign Ministry spokesman R.S. Jassal said. The three embassy staffers, identified as Mohammad Khalil, Rana Mohammad Saghir and Mohammad Amin, were being expelled for "indulging in activities incompatible with their official status," Jassal said. The Indian move is almost certain to result in retaliatory expulsions of Indian embassy staffers in Islamabad.-AFP PAKISTAN PROTESTS: The Pakistan Foreign Office on Friday summoned the Indian deputy high commissioner in Islamabad and lodged a strong protest against "uncivilised and inhuman treatment" meted out to two officials of the Pakistan diplomatic mission in Delhi on Thursday, Hasan Akhtar adds from Islamabad. The illegal detention and severe beating of the officials of the Pakistan High Commission, an official statement said, was carried out by the Indian intelligence operatives who during the five-hour detention of the Pakistani officials, extensively interrogated them and inflicted serious injuries by beating them up severely. The eardrum of one of the officials was badly damaged, the statement said. The Foreign Office, while delivering the protest, reminded the Indian deputy high commissioner in Islamabad that it was the responsibility of the Indian government in accordance with the Vienna Convention and bilateral code of conduct to properly treat the diplomatic and consular personnel. Pakistan also deplored "the unwarranted" expulsion by New Delhi of three staff members of the Pakistan mission by February 25, describing it as an action that clearly heightened the tensions and further strained relations between the two countries. The Foreign Office also protested to the Indian official against another related incident of harassment of a woman officer of the Pakistan High Commission by the Indian intelligence staff on January 27, in which the rear windscreen of the High Commission's vehicle was completely shattered. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000217 ------------------------------------------------------------------- Pakistan repulses attack on AJK post ------------------------------------------------------------------- JAMMU (Occupied), Feb 16: Four Indian soldiers were killed on Tuesday-Wednesday night when the Indian troops attacked a Pakistani post in Azad Kashmir. The ISPR said on Wednesday that Pakistan had repulsed the attack on one of its forward posts, inflicting "heavy casualties" on India. The army statement said that Tuesday night's attack was made in the Kotli sub-sector of Azad Kashmir, along the Line of Control (LOC). "According to initial reports, the enemy has suffered heavy casualties and also left behind one body and a large number of weapons and ammunition," it said. Official sources said that more than five Indian soldiers were killed while many more were wounded. In Jammu, held Kashmir, Maj Gen P.P.S. Bindra of the India's Northern Command said that at least four Indian soldiers were killed when a party on routine patrol came under heavy fire from across the LoC in the Mendhar Sector of Poonch district. The shootout lasted for 40 minutes. Mendhar lies 210 km north of Jammu. "The bodies are lying on our side of the LoC and we could not retrieve them so far because they (Pakistanis) open fire on us as our movement is under observation from the other side," Bindra told Reuters while adding that casualties were also inflicted on the Pakistani side. Intermittent mortar and small arms fire continued in the sector throughout Wednesday, he added.-Reuters/AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- Pakistan reaffirms policy of peace talks ------------------------------------------------------------------- Ansar Abbasi ISLAMABAD, Feb 17: At a high-level meeting on foreign policy chaired by the Chief Executive, General Pervez Musharraf, here on Thursday, the government endorsed the policy of engaging India in a dialogue to resolve peacefully the core issue of Kashmir and to remove all other irritants harming the relations between the two countries. Sources in the foreign ministry told Dawn that Chief Executive General Pervez Musharraf told the meeting that Pakistan wanted the resumption of dialogue with India but New Delhi was not ready for it. The meeting, according to a foreign office press release, undertook a broad review of important foreign policy issues, particularly Kashmir and Afghanistan. According to the brief press release issued by the FO, "Foreign Secretary Shamshad Ahmad made a detailed presentation. He highlighted the important considerations underpinning the approaches and the direction of the foreign policy which were, after discussion, endorsed by consensus." The sources, however, said that the chief executive told the meeting that Pakistan wanted peace in the region and would support every effort towards this end. The CE said that the tension between Pakistan and India needed to be decreased but he believed that this could only be done by resolving the core issue of Kashmir. The meeting agreed that peace in the region could not be ensured unless the issue was resolved. The meeting regretted that India was not interested in the resumption of dialogue. It was felt that India was deliberately avoiding serious discussions because that would lead to talks on the core issue of Kashmir. Kashmir, it was said, was the main irritant between the two countries while all the other pending issues were the result of this core irritant. The meeting also maintained that Pakistan would welcome any third party mediation to get the issue resolved. It was observed thatPakistan's position on Kashmir was morally, ethically and legally strong whereas India was playing on a very weak wicket due to which it was hesitant to accept any sort of mediation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000216 ------------------------------------------------------------------- No new licenses, says Moin: Ban on carrying arms from next month ------------------------------------------------------------------- Ansar Abbasi ISLAMABAD, Feb 15: The government on Tuesday put an immediate countrywide ban on the issuance of all kinds of arms licenses as part of its "seven-stage formula" to create a weapon-free society in the country. In a high-level inter-provincial meeting on law and order which continued here for almost six hours, the government also decided to strictly prohibit the carrying of all sorts of weapons with effect from March 1, 2000. Interior Minister Lt Gen (retd) Moinuddin Haider told a press conference, at the conclusion of the meeting which he chaired, that the above-mentioned decisions would be strictly implemented and there would be no exception or favour. "We will even use the army if required," the minister warned, when asked if it was possible to put an end to the growing culture of showing weapons in the public. Haider said that the meeting, which was also attended by the chief executive for almost an hour, agreed on a "seven-stage formula" to make Pakistan a weapon-free society. "Immediately, we are implementing only two stages - ban on arms licenses and prohibition on carrying weapons. The other stages will be announced and implemented later." The minister, however, clarified that the issuance of licenses to security agencies and bank guards would continue but only after thorough scrutiny. Haider, who declined to spell out all the seven stages of the de- weaponisation formula, hinted during the question-answer session that there were proposals under consideration to recover illicit (unlicensed) arms; to cancel prohibited arms licenses; and to regulate arms manufacturing in the tribal areas. Referring to the argument that weapon carrying was a cultural practice in parts of Balochistan and the NWFP, the minister said if the people of Afghanistan could abandon this culture why could not the people of these provinces. "We will show the will and the people will themselves see the implementation of these decisions," he said, adding that in a civilised society people did not carry weapons. SECTARIAN MILITANCY: The minister said that the meeting also discussed the issue of sectarian militancy and decided to check it with an iron grip. "Neither we will tolerate the culture of killings in the name of religion nor allow anybody to describe others as Kafir (infidel)," the minister said. There are more than 4,000 religious institutions (Maddarris) throughout the country and 99 per cent of them are imparting education in line with the teachings of Islam. The minister said that only one per cent of these institutions got their students trained from organised weapon training camps in Afghanistan for "Jehad" which could result into sectarian terrorism in Pakistan. He said besides asking these institutions to stop doing this, Pakistan had also taken up the matter with the Kabul government to ensure that no one from Pakistan received training from these camps in Afghanistan. "We are expecting a positive response in this respect from the Taliban," he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000216 ------------------------------------------------------------------- Wheat quota: provinces to be consulted ------------------------------------------------------------------- Rauf Klasra ISLAMABAD, Feb 15: Chief Executive Gen Pervez Musharraf has stressed upon the need for organized, equitable and timely distribution of wheat among the four provinces and has directed the federal agriculture ministry to prepare a comprehensive plan for wheat distribution, in consultation with provinces. He issued these instructions during a meeting on Tuesday, which he chaired, to review the wheat stock position in the country. The meeting took a number of decisions to meet the wheat requirement of the provinces. The chief executive also assured the farmers that all commitments made by the government would be honored and their quality of life would improve. Meanwhile, sources said NWFP and Balochistan governments have demanded of the federal government to enhance the per capita consumption of wheat as the eating habits of people of these two provinces are somewhat different from those of Punjab and Sindh. Sources said this demand was made by representatives of these two provinces who attended the meeting in which the four provincial governors and federal minister for finance also participated. Corps commanders, Chief of the General Staff, Director- General Staff, Director-General Military Operation, Secretary- General Finance Moin Afzal, secretary for food, agriculture and livestock Dr Zafar Altaf and the four provincial chief secretaries also attended the meeting. Giving details regarding the meeting, sources said representatives of Balochistan and NWFP were more vocal in their demand to enhance the per capita consumption quota. Sources said, they told the meeting that their provinces must be given more wheat as the per capita calculation made by the Ministry of Food, Agriculture and Livestock (Minfal) was insufficient to meet their demand for food due to a number of reasons. These included the eating habits of people in these provinces and another factor was the smuggling of wheat to Afghanistan, which resulted in its shortage. Sources said the meeting also discussed all issues related to wheat, including the issue of its rationing in the country. Sources said on the issue of supplying more wheat to the provinces to meet additional demand, it was pointed out that the Minfal had already allocated 150,000 tons of wheat to Sindh, 100,000 tons each to Balochistan and NWFP from the 0.5 million tons imported from Australia. The remaining 150,000 tons will be kept in Passco stores. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000216 ------------------------------------------------------------------- Chief Executive issues order: Ex-lawmakers lose privileges ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 15: The chief executive, Gen Pervez Musharraf, on Tuesday issued an order, suspending all the laws under which the members of parliament and provincial assemblies were enjoying privileges. The new order would be applicable from Oct 12, 1999. It stated: "It is hereby declared for removal of doubts that no salary, allowance, financial benefit, right, privilege or concession shall accrue or be deemed to have ever accrued or become payable to any holder of representative office for the period the National Assembly, the Senate and Provincial Assemblies remain suspended, in pursuance of the Proclamation of the fourteenth day of October, 1989, and the Provisional Constitution Order No 1 of 1999, as amended". The laws suspended by order No 3 of 2000 are: i) the Member of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974); ii) the Chairman, Speaker (Salaries, Allowance and Privileges) Act, 1975 (LXXXII of 1975); iii) the Deputy Chairman and Deputy Speaker (Salaries, Allowances and Privileges) Act, 1975 (LXXXIII of 1975). iv) the Balochistan Assembly Members (Salaries and Allowances) Act, 1975 (Balochistan Act No.II of 1975); v) the Balochistan Speaker's and Deputy Speaker's (Salaries, Allowances and Privileges) Act, 1975 (Balochistan Act No.V of 1975). vi) the Provincial Assembly of North-West Frontier Province, (Salaries and Allowances of the Members) Act, 1974 (NWFP Act No. XI of 1974); vii) the North-West Frontier Province Speaker's and Deputy Speaker's (Salaries, Allowances and Privileges) Act, 1975 (NWFP Act No.III of 1975). viii) the Punjab Provincial Assembly (Salaries, Allowance and Privileges of Members) Act, 1974 (Punjab Act, No. XVI of 1974); ix) the Punjab Provincial Assembly Speaker (Salaries, Allowances and Privileges) Act, 1975 (Punjab Act No. XII of 1975); x) the Punjab Provincial Assembly Deputy Speaker (Salaries, Allowances and Privileges ) Act, 1975 (Punjab Act No. XLIII of 1975). xi) the Sindh Provincial Assembly Members (Salaries and Allowances) Act, 1974 (Sindh Act No. XXVI of 1974); xii) the Sindh Speaker's and Deputy Speaker's (Salaries, Allowances and Privileges) Act, 1975 (Sindh Act No VIX of 1975) and, xiii) any law, rule, order, sanction or notification relating to terms and conditions of federal parliamentary secretaries and provincial parliamentary secretaries. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000216 ------------------------------------------------------------------- CIA terms Pakistan missiles threat to region ------------------------------------------------------------------- Correspondent WASHINGTON, Feb 15: The CIA has included Pakistan among countries with ballistic missile capabilities that pose an immediate, serious and growing threat to the US and its allies in the Middle East and Asia. "The proliferation of medium-range ballistic missiles-driven primarily by North Korean No Dong sales has created an immediate, serious, and growing threat to US forces and has significantly altered the strategic balances in the regions," a leading CIA expert told a Congressional hearing in an open session. Robert Walpole, the CIA's National Intelligence Officer for Strategic and Nuclear Programs, gave his assessment before the Senate Governmental Affairs Sub-committee on International Security, Proliferation, and Federal Services on the ballistic missile threat to the US through the year 2015. Walpole categorically stated that Pakistan had acquired M-11 SRBMs (short-range ballistic missiles) from China and medium-range Ghauri from North Korea while India had short range Prithvi-I and recently began testing the medium range Agni-II missiles. "We assess these may have nuclear roles," Walpole told the committee. Discussing the export of these missiles by North Korea, Walpole said acquiring long-range ballistic missiles armed with a weapon of mass destruction probably will enable weaker countries to do three things that they otherwise might not be able to do: deter, constrain and harm the US. The CIA projects that the US will face threats from Russian, Chinese, and North Korean intercontinental ballistic missiles (ICBMs), and possibly from Iranian and Iraqi ICBMs, in the coming 15 years, Walpole said. Some of these systems, he said, may be intended for their political impact as potential terror weapons, while others may be built to perform more specific military missions, facing the US with a broad spectrum of motivations, development timelines, and resulting hostile capabilities. "In many ways, such weapons are not envisioned at the outset as operational weapons of war, but primarily as strategic weapons of deterrence and coercive diplomacy," he said. They need not be highly accurate; the ability to target a large urban area is sufficient. They need not be highly reliable, because their strategic value is derived primarily from the implicit or explicit threat of their use, not the near certain outcome of such use. Walpole said as alarming as the long-range missile threat is, it should not overshadow the immediacy and seriousness of the threat from shorter-range missiles. He gave examples of Iran which has tested its 1,300 km-range Shahab-3, which can reach most of Turkey; Pakistan which has M-11 SRBMs (short-range ballistic missiles) from China and Ghauri MRBMs from North Korea; India has Prithvi I SRBMs and recently began testing the Agni II MRBM. "Countries developing missiles view their regional concerns as one of the primary factors in tailoring their programs to provide deterrents and force-multipliers," he said. Iran, he said, was likely to test a space launch vehicle by 2010 that could be converted into an ICBM capable of delivering a several-hundred kilogram payload. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- Sindh demands Rs700m from Centre for law & order ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Feb 17: The Sindh government's demand to the centre for bearing half of the cost the province had spent on handling the law and order problem will be discussed at the next meeting of the provincial coordination committee (PCC), Dawn reliably learnt. Recently, Sindh Governor Azim Daudpota wrote to Chief Executive General Pervez Musharraf, seeking his help for the payment of Rs700 million to the province. Copies of the latter were sent to the finance and interior ministries. The governor reminded the federal government of its commitment to bear half of the expenditure the provincial authorities had been incurring on handling a "near insurgency situation" in Karachi. During the PPP government, Sindh was given an assurance that the centre would share half of the cost of handling extra-ordinary law and order situation in Karachi and other parts of the province. A formal document was signed by the representatives of both the governments. Payments were regularly made to the province since an operation clean-up in Karachi had been going on under the direct supervision of the then interior minister Naseerullah Khan Babar. However after the change of the government in November 1996, the centre stopped those payments. The governor pointed out that in the last three years of the PML government the province had to spend Rs1.4 billion on the law and order. In accordance with the agreement, he said, half of the cost should be borne by the federal government. The provincial authorities had also raised the issue of the payment of Rs700 million during the CE's recent visit to Karachi. The CE had directed the provincial authorities to formally take up the issue with the federal government by addressing a letter to the finance ministry. Sources at the of finance ministry said that they had received the letter from the provincial government and the matter had been referred to the recently re-constituted Provincial Coordination Committee (PCC). The PCC is expected to meet sometime next month. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- Arms carrying, display banned in Balochistan ------------------------------------------------------------------- Saleem Shahid QUETTA, Feb 17: The Balochistan government has imposed an immediate ban on the display and carrying of firearms in the province, following the decision of an inter-provincial meeting. Home Secretary Sheharyar Khan told Dawn on Thursday night that a notification in this regard had been issued by the concerned authorities earlier in the day. To a question whether the ban was applicable to the tribal areas or not, the official said "there is no tribal area in the province". After the Supreme Court's decision on March 22, 1996, there were no tribal areas in the province, he said, adding that the ban would be applicable to every body, without any exception. All the areas in Balochistan, including Dera Bugti Agency, Kholu Agency, Chagai and Zhob agencies, were under regular law, he elaborated. About the licensed arms, he said the display and carrying of arms were already banned under Section 144 Cr.PC in Quetta and many other parts of the province. The home secretary said that detailed orders and instructions in this respect would be issued to all the commissioners and deputy commissioners in a couple of days. According to an handout issued late in the night, the Balochistan government also imposed a ban on the issuance of arms licences in the province.
=================================================================== BUSINESS & ECONOMY 20000219 ------------------------------------------------------------------- GST at retail level from July: Shaukat ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Feb 18: Finance Minister Shaukat Aziz said on Friday the government would simplify reporting requirements for small general sales tax payers before budget and impose GST at retail level from July. "The government resolves to impose GST at all levels from the next fiscal year," he told newsmen at a press conference held at the State Bank. Aziz said the government would simplify reporting requirements for small sales tax payers but he made it clear that GST would be imposed from the next fiscal year. The minister said the issue of how to impose GST would come up for consideration at a two-day meeting of Economic Advisory Board due in Islamabad on 24th and 25th. He said the board would review the report of its sub-committee on taxation adding that Chief Executive Gen Pervez Musharraf would also attend the meeting on the second day. Aziz said the board would also consider the issue of agricultural income tax. He said he had spoken to various lobbies concerned on this issue adding that the experts' committee on agriculture would submit its report on the issue next month. He said the matter would be finalized before the budget. The minister said the board meeting is being held primarily to reevaluate the state of the economy and to see what has so far been done to implement the economic revival plan of this regime. He said initial indications are positive and cited a 20 per cent growth in tax collection and 8.5 per cent growth in exports during the first seven months of the current fiscal year as two key examples. He, however, termed the State Bank report on the state of the economy in the second quarter ending December 1999, as "very balanced, fair and objective." Aziz said sales tax excluding surcharge on petroleum showed a net growth of 30 per cent during July 1999-January 2000: He hoped that sales tax would be number one revenue collecting tax in next fiscal year. In response to a question he said it could not be predicted at the moment whether petroleum prices would rise or fall in months to come. But he reiterated the government resolve to decrease the retail prices of petroleum if international prices went down. He said the government would review petroleum prices at end March. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000216 ------------------------------------------------------------------- State Bank of Pakistan eases curb on lending to Modarabas ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Feb 15: Banks can now offer financing facilities to modarabas with credit ratings of B-3 without prior clearance of the State Bank of Pakistan. The latest SBP instruction on this subject is that banks will continue to seek prior permission of SBP for offering financing facilities to the modarabas whose credit rating is below B-3. The SBP issued this instruction to all banks through a circular. But it did not explain B-3. SBP had instructed banks in September 1996 to seek its prior clearance before offering financing facilities to modarabas amid reports suggesting that bank financing to modarabas was creating an imbalance in the market. "The matter has been reviewed and it has now been decided that banks shall no longer require prior clearance of SBP in respect of modarabas having a credit rating of B-3 and above," says the SBP circular (BPRD no 05). But it makes it clear that in offering financing facilities to even these modarabas banks will maintain their exposure limits and observe all the prudential regulations. "In other cases banks shall, however, continue to seek prior clearance of the State Bank." Though well received in spirit in the modaraba sector-the SBP move has created some confusion. In the first place the credit rating grade of B-3 is used only by Pakistan Credit Rating Agency and not by DCR-VIS. Modaraba managers wonder what treatment will be meted out to the modarabas that are credit rated by DCR-VIS and not by PACRA. Senior SBP officials say they would allow banks to offer financing facilities to the modarabas credit rated by DCR-VIS if their rating is equal to B-3 of PACRA. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000219 ------------------------------------------------------------------- KSE 100-share index breaches psychological barrier ------------------------------------------------------------------- Reporter KARACHI, Feb 18: KSE 100-share index on Friday breached the psychological barrier of 1,900 points after posting a fresh gain of 58 points as the energy sector-led price flare-up followed by news of autonomy engulfed the entire market. The KSE 100-share index breached the barrier of 1,900 points to quote at new highs for the last couple of years after scoring a fresh gain of 54.45 points or three per cent at 1,938.17. The message is clear that it could rise further after breaching the barrier of 2,000 points also possibly by the next week. Weekend profit-taking by jobbers, bargain-hunters and day traders toward the closing bell did take its toll on certain inflated counters after reports of some technical problems in the computer system but it was well-absorbed at the dips. Apart from President Clinton's possible visit to this part of the subcontinent, the market was essentially driven by the strength of the energy sector, analysts said. 'The autonomy given to the eight leading oil and gas companies including listed ones such as PSO, Sui Southern and Sui Northern aiming finally at their privatization was well-received in the rings as was reflected by active buying in most of them', they added. They said the unfolding corporate scenario reveals that the government is inclined to significantly expand the role of private sector after curtailing the role of the public sector. 'All these steps are confidence-building and investors are taking them according to new policy perceptions being evolved at the highest level', said a leading floor broker. He said both the general investor and the brokerage houses are attaching a great importance to the government's massive privatization programme during the next couple of months but possibly before June this year as 10% of sell-off will be transacted through the stock exchanges. 'I don't see any reason, which could halt the KSE index upward march to 2,000 points possibly by the end of the current month', stock analyst Faisal Abbas says. Heavy buying in both hub-Power and PTCL, which together hold a weightage of 43% in it could take it where they want in the developing corporate scenario, he adds. But massive covering purchases in the undervalued textile shares appears to be the chief stimulating factor behind the current price flare-up. Most of them rose in unison, some of them quite sharply. Among the energy shares, which experienced a price flare-up, Attock Refinery, PSO, Pakistan Refinery, and Pakistan Oilfields were leading, closing with gains ranging from Rs6.00 to Rs15.20. Other prominent gainers were led by Adamjee Insurance, Al-Ghazi Tractors, Nestle Milk Pak and Lever Brothers, which rose by Rs5.00 to Rs12.45, largest rise of Rs105.00 being in Lever Brothers. There were several other good gaines also including Grindlays Modaraba, Engro Chemical, Sapphire Fibre, Faisal Spinning, General Tyre, and Nagina Cotton. Prominent losers were led by Dawood Hercules, Crescent Leasing, National Tanneries, Tri-Pack Films, Shell Pakistan and 14 ICP Mutual Fund, which suffered decline ranging from one rupee to Rs6.60. But the biggest decline of Rs15.00 was noted in Knoll Pharma. Trading volume fell to 238m shares from the previous 276m shares as gainers held a strong lead over the losers at 196 to 100, with 58 shares holding on to the last levels. The most active list was topped by PTCL, higher 85 paisa at Rs31.50 on 91m shares followed by Hub-Power, up 50 paisa at Rs28.85 on 68m shares, PSO, higher by Rs9.50 at Rs254.00 on 15m shares, ICI Pakistan unchanged at Rs12.60 at 9m shares and Sui Northern, up Rs1.25 on 7m shares. Other actively traded shares were led by Fauji Fertiliser, firm 25 paisa on 7m shares, ICP SEMF, higher Rs1.95 on 6m shares, Sui Southern, up Rs1.30 on 4m shares, Dhan Fibre, steady 20 paisa on 4m shares, FFC-Jordan Fertiliser, firm by five paisa also on 4m shares and Adamjee Insurance, sharply higher Rs10.25 on 3m shares. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000217 ------------------------------------------------------------------- IMF team to review tax progress ------------------------------------------------------------------- Correspondent ISLAMABAD, Feb 16: Central Board of Revenue is taking necessary steps for an IMF experts' team expected to arrive in the last week of March 2000 to review the pace of IMF-sponsored measures for tax- net expansion and tax administration reforms programme for 1999- 2000-2001. Official sources told Dawn that a review of the current achievements in these fields by IMF experts would include study into new tax modules for scientific tax receipts estimation for 1999-2000, structural reforms agenda for income/sales tax administration 1999-2000, and sales tax net expansion programme 1999-2000-2001. A report on performance trends in revenue collection during the first half of 1999-2000 and on receipts prospects after the inclusion of a number of new sectors into the GST net (like electricity and gas), would also be focused during the review. Officials said the IMF experts would be re-examining a number of grey areas in structural reforms performance, which were pointed out previously. These include: delay in creating a system of coordination between the sales tax and income tax wings for doing away with the loopholes helping wilful tax evasion, netting new taxable sectors and businesses, the persisting methods of IT administration that discouraged IT receipts and the net extension to new prospective assessees, continual loss of revenues due to imperfect ST/IT procedures, remaining impediments in the way of GST in VAT form, especially in the textile-related distribution and retail trade sectors, delay in legislation for implementing services (sales) tax and the ongoing right-sizing process in the CBR apparatus. Sources said that the IMF experts would also be offered details on factors causing delay in launching the common tax identifier (CTI), which was scheduled for end of July 1999, as envisaged in the Fund- Islamabad agreement for reforms-support, and the income tax wing's failure to improve its registered persons' number under the head of wealth tax. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000215 ------------------------------------------------------------------- CBR to probe Rs8.6m bribe case ------------------------------------------------------------------- By Our Correspondent ISLAMABAD, Feb 13: The government has directed the Central Board of Revenue to hold inquiry against the customs officials who allegedly took bribe in a cloth import consignment case at the Sust Pak-China border post. Accordingly, sources said, the director-general of customs intelligence will soon be appointing a team to investigate the matter. The deputy collector of customs, who supervised the checkpost, has already been ordered to report to the CBR. The CBR officials told Dawn that eight containers, meant for Gilgit cloth market, were stopped at Sust on Dec 6. The importers offered bribe for the release of the consignment without duty. They said the customs officers received Rs8.6 million bribe and released the consignment. The director-general of customs intelligence and investigation has been directed by the CBR chairman to visit the checkpost. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000213 ------------------------------------------------------------------- GDP target may not be achieved: SBP report ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Feb 12: The State Bank has warned that Pakistan GDP (gross domestic product) may not grow to the target level of 5 per cent during fiscal year 1999-2000. "The latest data indicates that the overall GDP growth may be somewhat lower than the targeted rate of 5 per cent," says SBP second quarterly report on the state of the economy. The State Bank released the report on Saturday. In fiscal 1998-99, GDP had grown only 3.1 per cent against the target of 6 per cent. The SBP report does not specify an expected level to which it may grow this year. The report implies that the current fiscal year may close with around 4 per cent inflation as measured by consumer price index. "On the basis of existing trends the rate of increase in prices may be around 4 per cent," this is exactly how the report puts it after commenting in detail on inflation. It says CPI registered an annualized increase of 3.4 per cent in the first half of the current fiscal year against 6.5 per cent in the same period in 1998-1999. The report warns that increase in support prices of wheat and various varieties of paddy plus an upward revision of petroleum and furnace oil prices may have an impact on the price line with some time lag. The report says that tax collection of Rs159.6 billion during July- December 1999 was up 20.2 per cent compared with tax collection during July-December 1998. While terming this increase a positive development, the report says that the actual outcome on fiscal deficit would depend largely on the government ability to reduce its non-development expenditures. A table attached to the report shows that, during the first six months of 1999-2000, credit to the private sector plus public sector enterprises stood at Rs28.6 billion against Rs56.6 billion during the same period in 1998-1999. It further shows the net government borrowing for budgetary support totalled Rs13.1 billion during July-December 1999 against Rs5.7 billion during July- December 1998. The total default of bank loans worth Rs1 million and above stood at Rs141.8 billion at the end of December 1999, about one per cent lower than similar defaults at the end of June, says the report. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- 8 oil & gas companies given autonomy ------------------------------------------------------------------- ISLAMABAD, Feb 17: The government on Thursday announced full autonomy to eight oil and gas companies under the ministry of petroleum and natural resources. Making formal announcement at a press conference, Federal Minister for Petroleum and Natural Resources Usman Aminuddin said, the companies including, Pakistan Petroleum (PPL), Oil and Gas Development Co (OGDCL), Sui Southern Gas Co (SSGCL), Sui Northern Gas Pipelines (SNGPL), Pakistan State Oil (PSO), National Refinery (NRL), Pak Arab Refinery (PARCO), and Attock Refinery (ARL) have been given an independent status with immediate effect. He said an approval to reach the decision was accorded by the federal cabinet during its Wednesday's meeting chaired by the Chief Executive General Pervez Musharraf. The meeting had also approved the appointment of the Chairmen, Board Members and Managing Directors of the companies which have been given autonomous status. The minister for petroleum and natural resources while citing details about the powers given to the newly inducted management of the companies said, 'they will enjoy full powers to run their respective companies on purely professional and commercial terms.' The management of these companies will be above all influence, he said. He hoped the decision would help overcome the menaces of nepotism, corruption, plunder, and misuse of power which he said had been an order of the day in the public sector companies. Regarding the role of ministry, he said, it will be supportive and rule framing body, that has hardly any influential role as far as the management affairs of the companies are concerned. He announced the appointment of chairmen, members of board and managing directors who include: chairman, directors Pakistan Petroleum are H.M. Sohail, chairman, Munsif Raza, managing director/chief executive officer, and directors, Shahid Ahmed Abdus Sattar, financial advisor, Sajid Zahid, Tariq Ikram, chairman Export Promotion Bureau, and M.A.K. Alizai, International Director Finance Corporation, Washington. The chairman and directors of ARL, Bashir Ahmed chairman, Islamic Investment Bank, M. Raziuddin, managing director, and directors Abdus Sattar, financial advisor (P&NR) G.A. Shahri, director general (Oil), Mukhtar Jafri finance and coordination.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- Gold consumption at record high in Pakistan ------------------------------------------------------------------- Masood Haider NEW YORK, Feb 17: Strong demand for gold in Pakistan, India and the United States helped it reach new record level of consumption, World Gold Council said here on Thursday. According to a statement by WGC in New York, the gold demand has risen by 21 per cent-more than a fifth to reach a new high. In the 27 markets monitored by the council, demand for gold rose 566.2 tonnes to 3278.4 tonnes, which is 21 per cent above the total for 1998 and 224.8 tonnes above previous record of 3,053 tonnes set in 1997-a gain of 7 per cent. In Pakistan afflicted by the economic and political problem, the demand rose a shocking 24 per cent. The 1999 record came in spite of a slowdown at the beginning of the fourth quarter when demand fell sharply as a result of the sudden volatility in the price of gold. However, demand recovered strongly as the period progressed so that fourth quarter demand totalled 806.0 tonnes, just 0.7 tonnes below the figure of 806.7 tonnes achieved in the fourth quarter of 1998. An increase in both jewellery and investment contributed to the year's record results. Jewellery demand in the fourth quarter totalled 707.8 tonnes, 5% above the total for the same period last year. That brought full year 1999 jewellery demand to 2,799.2 tonnes - a formidable gain of 23% over 1998. Meanwhile, investment demand for the fourth quarter 1999 was 98.2 tonnes, down 24% from the fourth quarter 1998. However, investment demand for the full year 1999 totalled 479.2 tonnes, an increase of 8% over 1998. These are the main findings of the latest issue of the World Gold Council's quarterly survey, Gold Demand Trends, published on Thursday. In reviewing a year of record demand, Miss Haruko Fukuda, Chief Executive Officer, World Gold Council, said that the results were the more remarkable in that they were achieved despite a volatile and highly eventful year for the gold market. She noted that consumers in many parts of the world held back from buying at the beginning of Q4 because of the sharp movements in the gold price following the signing of the Washington Agreement on Gold, which restricted sales out of the official reserves of some of the world's largest gold holding countries for the next five years. "Happily, gold demand recovered as the quarter progressed providing support for the view that it was the sudden increase in day-to-day volatility in the gold price that deterred consumers rather than the absolute levels. It is especially pleasing to note, too, the continuing gains in the demand for gold as an investment," she said. Miss Fukuda observed that at the height of the Asian economic and currency crisis a year ago, only 9 of the 27 markets covered by the WGC recorded annual gold demand exceeding 100 tonnes. "That number rose to 12 in 1999 as a result of strong recoveries in Indonesia, South Korea and Taiwan," said Miss Fukuda. Full year records were set by the following: - Pakistan, which shrugged off political problems to register a gain of 24%. - India, the world's largest consumer, with a gain of 3%. - The US, the second largest market in the world, up 7% year on year. - The Gulf States, which registered a fractional increase over 1998. - Indonesia, which was a net dishoarder in 1998. - Egypt, up 19%, helped by strong economic growth. Several smaller markets also achieved record full-year gold demand. These included Mexico, up 27% over 1998 to 69.6 tonnes; France, edging up 1% to 60 tonnes; and Vietnam, rising 20% to 53.0 tonnes. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- Sales Tax department says agents cause delay in refunds ------------------------------------------------------------------- Reporter KARACHI, Feb 17: The sales tax department has alleged that agents appointed by exporters for handling their refund cases are source of corruption and cause delay in processing of their refunds. While clarifying the position of sales tax department with regard to delay in payment of refunds an official suggested that instead of appointing agents and middlemen all exporters should nominate their own staff for filing of refund claims and to appear before the Assistant Collectors (Refunds). The department has taken serious note of the exporters' complaint over delay in payment of refund of sales tax, especially to 'Gold Category' card holders. Exporters have been informed that the sales tax department has been advised to accord priority to sanction the refund claims which are received complete in all respects, the official added. For streamlining the refund of sales tax on exports, specifically to 'Gold Category' exporters the department asked exporters to report their cases directly to the collector of sales tax. Furthermore, all the sales tax registered persons have been asked to register their complaints/grievances regarding delays in refund through fax. Exporters may also be advised to file their claims complete in all respects so that the delay is avoided in future. The business community had been demanding of the government to simplify the sales tax systems which has become a cause of unparallel corruption and extortion. The harsh punitive law under Sales Tax Act 1990, giving power of arrest has become a weapon in the hand of revenue collectors for extorting and 'black mailing' business community, business leaders argue. They had been also demanding removal of sales tax on exports as this generates corruption because the exporters have to make 'cost compliance' for getting timely refund from the sales tax department. Almost all the trade bodies, including FPCCI are strongly of a view that the present sales tax rate of 15 per cent was took high and be reduced to 5 per cent for collection from all segments of trade. It is also reported that almost all the high-ups in the government including ministers privately do agree that sales tax rate should not be more than 5 per cent but none was ready to put it into reality fearing backlash from the IMF and other world donor agencies. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000217 ------------------------------------------------------------------- Downsizing of workforce announced ------------------------------------------------------------------- Correspondent ISLAMABAD, Feb 16: Chairman Privatization Commission Altaf M. Saleem has announced cutting down the size of PC work-force by 31%, and utilization of proceeds in future only for retiring the foreign debt. Addressing the Rawalpindi Chambers of Commerce and Industry on Wednesday, he said under the right-sizing policy, the number of PC officials is being reduced from 118 to 69, while the number of private consultants is being reduced from 43 to 15 (a slash of 87%). He assured the RCCI members that immediate issues which pertain to siphoning out the state sector enterprises, will be addressed on emergency footing. Remedial actions have been devised, and he has sent a draft of amendment in the privatization law to ensure smooth process of engaging the private sector in state-owned businesses. He said that members from the citizens are being offered slots on the PC board of directors to seek improved cooperation and guarantee transparency in deregulation and auction. 'We are not privatizing only for the sake of privatization,but we are working to ensure that economic activities in the country are afforded a boost and benefits reach the public', he stressed. He said a conducive investment atmosphere is the chief aim at the moment and invited the businessmen to participate in the process of privatization to ensure success to this aim. A privatization reform agenda is in the offing, which will be implemented in a phased manner, he added. He called upon businessmen to come forward to assist the government in privatizing and help increase the investor confidence. President RCCI, SM Naseem drew the chairman's attention toward the privatization of power sector and said the Kot Addu Power Plant's sale resulted in steep rise in power tariff and rendered it beyond the means of commercial, industrial and residential consumers. The present regime will not repeat this flagrant mistake, he hoped. He, however, urged the smooth privatization of PTCL and Pak Steel, in particular backdrop of the latter incurring un-manageable losses. He asked the PC chairman to conduct right-sizing of PIA which, he said, was incurring phenomenal losses due to mismanagement. In connection with OGDC, he said, privatization should be restricted to the new wells exploration only.Back to the top
=================================================================== EDITORIALS & FEATURES 20000213 ------------------------------------------------------------------- *From Washington ------------------------------------------------------------------- Ardeshir Cowasjee AM still in Washington. My health is recovering, but at the speed of a camel's measured plod. Nevertheless, it still seems, or appears, that my recovery is immeasurably speedier than that of the health of our nation. Over here, the concern of this country is firmly centred around the question of who will be the next president of the US of A. Former secretary of state and master of diplomacy Henry Kissinger's sights are set on the future as is evident from an article of his that has just been published entitled 'The Next President's First Obligation'. Others who have played similar or lesser roles in the political life of the country are following suit. Little thought is given to whether Bill Clinton visits Pakistan or not. It is of no apparent consequence. Should Clinton's hesitation be caused by his apprehension of a meeting with President R. A. Tarar, or of making an overnight stop in Islamabad, we must excuse him. If he does not descend from the clouds and spend a few hours in our sanitized capital, the heavens will not fall, but he should perhaps take a chance, stop over, meet General Pervez Musharraf and assess for himself the leadership qualities he possesses. Does he present himself as a fundo or not? Is he likely to be an extremist or not? Will he be able to deliver or not? As for Kissinger, at this time, and taking into account the present rickety state of Pakistan's relationship with the US, we might do well to cast our minds back to the days when pastmaster Kissinger, on behalf of his president, was playing footsie with an earlier military dictator of the Republic of Pakistan, General Agha Mohammad Yahya Khan. Firstly, to quote : "Ever since it had come into being, Pakistan had sought a sustained legitimacy. No government after the death of the founder of the state had served out its term. Every change had occurred through some sort of coup; military and civilian governments alternated, with the military dominant." No, this was not written in February of the year 2000. Such was the state of Pakistan in 1970, as observed by Kissinger in his 'White House Years'. What has changed? Neither has there been much change in US attitudes towards Pakistan. The military alliances formed way back in the days of the Eisenhower administration and Washington's interest in Pakistan cooled noticeably after 1961 when verbal assurances of protection were substituted for military hardware. After the 1965 war, the US stopped the supply of military equipment to both Pakistan and India. When President Johnson became aware of the one-sidedness (since India received arms from its own armouries and from its links with Communist nations) all he did was to promise to transfer some obsolescent American tanks to Pakistan through a third party, and even that transaction was not completed. In 1970, Kissinger records: "Pakistan's leaders already felt discriminated against because a Harvard professor had been assigned as ambassador to New Delhi while Islamabad rated 'only' a career appointment." However, Richard Nixon was one American president who found the bluff, direct military chiefs of Pakistan, such as General Yahya Khan, far more congenial than the Indian leaders. But amongst the opinion-making groups in the US Pakistan had never found the sympathy that India enjoyed. There were also then, as there are now, hardheaded reasons for the priority attached to US relations with India. Nevertheless, the US did not baulk then at using Pakistan for expedient purposes, as it also did not in the 1980s when Afghanistan was a problem, and surely would not baulk at doing so again in the 21st century. In September 1970, Nixon granted an interview to 'Time' magazine. In it he touched upon China, its assumption of a future world role, and how he would like to be a part of it: "If there is anything I want to do before I die, it is to go to China, If I don't, I want my children to." This was the era of Pakistan's budding flirtation with The Middle Kingdom. In October 1970, General Yahya Khan met Nixon in Washington shortly prior to a visit to Beijing. Nixon asked him to convey to China that the US regarded Sino-American rapprochement as essential and that he was ready to send a secret emissary to Beijing, mentioning Kissinger as a possible envoy. General Yahya went to Beijing in November and three weeks after his return Pakistan's ambassador in Washington, Agha Hilaly, met Kissinger and produced a handwritten missive which he declared could not be handed over but could only be read out. It was a personal message for Nixon from Zhou Enlai who observed that though many messages had been received from the US via various sources, this was the first one to come "from a Head, through a Head, to a Head. The United States knows that Pakistan is a great friend of China and therefore we attach importance to the message." A personal representative of the president was invited to Beijing. A reply was drafted by Kissinger and handed over to Hilaly on December 16. It made it clear that the US was prepared for high- level talks in China.The Pakistani channel was not activated again until April 27, 1971, when Hilaly delivered to Nixon a handwritten message from Zhou Enlai in which he expressed his gratitude to Yahya and informed Kissinger that the Chinese government was ready to receive publicly in Beijing a special envoy of the US president, or even the president himself should he consider the time ripe, and that proper arrangements were to be made "through the good offices of President General Yahya Khan." A formal reply to Zhou from Nixon was handed over to Hilaly on May 10 in which he proposed a preliminary secret meeting between Kissinger and Zhou on any date from June 15 onwards. This first meeting was to be 'strictly secret' and would prepare the ground for Nixon's visit to Beijing. In a subsequent exchange of messages it was agreed that Kissinger would fly from Islamabad in a Pakistani Boeing to a Chinese airport not open to the public. The dates fixed were July 9 to July 11. On the morning of July 8, 1971, Kissinger arrived in Islamabad after visits to Saigon, Bangkok and New Delhi. He lunched with Joseph Farland, the US ambassador, and dined with General Yahya, making much mention of a bad stomach. Geneal Yahya suggested a trip to Nathiagali, away from the heat of Islamabad, where he could recover over the next couple of days, and Kissinger gratefully agreed. At 0430 on July 9 Kissinger took off from Chaklala in a PIA 707 piloted by General Yahya's personal pilot. At 0800 a dummy motorcade proceeded from Islamabad to Nathiagali. The next day, Kissinger's aides announced that he needed an extra day's rest in the hills and his onward flight schedule was rearranged. Kissinger flew back into Chaklala at 1500 on July 11, drove via a circuitous route on to the Murree Road and thence back to Islamabad as though returning from Nathiagali. By 1800 he was in his own plane heading for Teheran. Kissinger writes how "boyishly ecstatic" General Yahya Khan was at having pulled off the secret operation. He had personally reviewed each detail of the clandestine departure and arrival and put the full facilities of the Pakistan government at Kissinger's disposal. He asked nothing in return, contrary to media claims at the time; "he performed a great service for our country and it must be recorded that he dealt with us honourably." Nixon thereafter "adopted a somewhat warmer tone toward Pakistan. He and I were profoundly grateful for Pakistan's role as the channel to China. It was a service for which Pakistan's leaders, to their lasting honour, never sought any reciprocity or special consideration." But then "our relations with Pakistan were marked by a superficial friendliness that had little concrete content." The superficial, as opposed to the concrete, in our particular case at this particular time, still reigns supreme. General Pervez Musharraf must realize that we have few, very few, friends and that nothing can be achieved by isolation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000218 ------------------------------------------------------------------- Rocket-like personalities ------------------------------------------------------------------- Ayaz Amir THE more one delves into Muslim history, the less one is surprised by Pakistani history. Indeed seen in the light of the past, the seizure of power by the Khan-i-Khanans of Pakistan (General Pervez Musharraf being the fourth in this distinguished line) seems less an aberration and more the iron norm. Except for the first Caliphate, power throughout Islamic history has been won and lost by the sword. This is true of other civilizations as well but while the world of Christendom was able to make the transition from kingdoms and empires to nation-states, the world of Islam was unable to do the same on its own. The nation-states that constitute the Islamic ummah or commonwealth today came into being as a result or under the impact of colonialism. The question of succession was never an orderly affair in the kingdoms of Islam with brothers killing brothers, sons rising up against fathers and more often than not a bloodbath preceding a change on the throne. The achievements of the Moghuls were great - none greater than the fact that for the first time in the history of India they created a continuous political tradition which people came to think of as a necessary condition of social existence. But their history with its fratricidal blood-letting and never-ending wars of succession makes for depressing reading. Even as the reader follows the triumphs of the emperors, he or she is beset by the gnawing feeling that the seeds of decay and destruction are also being sown. The collective memory of the Muslim world therefore harks back to a tradition steeped in sword-play and authoritarianism. To the extent that democratic concepts exist in the Islamic world (and for that matter even in India) they have come from outside sources. And because they did not arise from within, these concepts have been but a veneer on the surface of our real existence. Nothing proves this more than our own history. India before the advent of the British knew nothing of liberalism or democracy. Into the Indian body politic these came as imports from across the seas. The educated political class of India, Hindu and Muslim alike, learnt these concepts by rote without, I think, imbibing their substance. This is why in both countries, but more so in Pakistan, such a hash has been made of democracy. In India the parroting of democracy and the rule of law is at least carried on with a modicum of sincerity. In Pakistan it does not take long for the ruling classes to betray their contempt for democracy. When a constitutional government is in place politicians subvert it by conducting themselves like squabbling ravens. When democracy is replaced by the cult of the strongman, as is happening for the fourth time now, strange theories are heard which have nothing to do with democracy. In either case what our ruling class reveals is the poverty of its political talent - which is the first condition for running any polity wisely and effectively. In any event we got the trappings of democracy not because we demanded them, fought for them or even understood what they meant. We received them as a gift because we happened to be a British colony and the British voluntarily, a point we do our best to ignore both here and in India, chose to hand over power to us in a "constitutional" manner. If we had been a Dutch or a French colony our political progression would have taken place on different lines. What is the purpose of this recital? Only to demonstrate the futility and irrelevance of mounting the house-tops and crying over the subversion of democracy when a constitutional government is overthrown. What constitution and what democracy? General Zia-ul- Haq was not far wrong when he said that the constitution was a document of so many pages which he could tear up whenever he wanted. Perhaps in a rash moment he truly expressed what he felt, otherwise every khan-i-khanan in Pakistan's history has subscribed to the same unvarnished opinion. Another similarity with our past should also be noted. Throughout Islamic history theologians, jurists and political thinkers have tried to resolve the dilemma presented by Imarat al-Istila or "Amirate by seizure". Thus just as Pakistani khan-i-khanans can claim a connection with Islamic history, Pakistani jurisconsults like Sharifuddin Pirzada whose duty it becomes to look for arguments to justify the seizure of power also can claim descent from a rich historical tradition. The 'doctrine of necessity' at whose altar Chief Justice Anwarul Haq sanctified Zia's martial law was not his own invention. This doctrine is as old as the first struggle for power in Muslim history. Military strongmen always take pride in saying that the people have welcomed them forgetting that the people of the Indo-Gangetic plain, throughout their history, have been submissive before every conqueror and resigned before every natural disaster. Resignation and fatalism are the outstanding qualities of the subcontinent. They remain strong to this day. We people who inhabit this land have never been masters of our destiny. We live by our hopes and wishes but rebellion is alien to our temperament. The Afghans are different. They have always been an unruly race, a fact which even Babur noted: "These Afghans remain very rustic and tactless." According to Bernier, a foreign chronicler of the Moghul Empire, the Afghans were "an intractable race...even the menials and carriers of water belonging to that nation are high-spirited and warlike." Even in our times the Afghans have exhibited a genius for war and insurrection (with no little help, it should be noted in passing, from the godless CIA) but very little talent for political organization, which is why, despite their triumph against the Russians, their country remains desolate and ruined. We are not Afghans. Our genius consists in accepting the dictates of fate. Pakistani rulers, however, even though they are always able to conquer power easily suffer from a sense of insecurity. Not content simply with the passivity or acquiescence of the people, they crave two more gifts: (1) the stamp of legitimacy from the Qazis of the day (which is where the Sharifuddin Pirzadas come in); and (2) a suspension of disbelief on the part of the people so that they take at face value whatever the rulers say. The first is readily achieved but the second is more difficult. Every ruler in history who has overthrown another says that he has done so for the larger good of the nation or the people. In other words, if General Musharraf has a seven-point agenda, every ruler in his position also has a similar agenda, whether of seven points or of fourteen. This is a standard line to take because no ruler ever says he has seized power for himself. But enunciating this altruistic line is one thing; expecting people to swallow it is asking for too much. It is true that whenever power forcibly changes hands, the general public lets its imagination take flight as a result of which expectations soar. This happened in the case of General Musharraf. This happened in the case of all three of his military predecessors. But after some time reality reasserts itself and the feeling takes hold that the dulcet sounds being heard are no different from similar sounds heard all too often before. This is a natural process of disenchantment but it goes down ill with all rulers. So what conclusions are to be drawn from this tale? Judging by our history, the democratic impulse, for whatever it is worth, will remain weak in Pakistan for the foreseeable future. So safeguarding democracy is not the problem because democracy, if and when it resurfaces, will remain a threatened entity. The problem has to do with the quality of our strongmen. About the conquistadors of the Islamic world, Nirad Chaudhri for one has this to say: "Yaqub ibn-al Layth al-Saffar, Mahmud of Ghazna, Muizz-ud-din Muhammad bin Sam of Ghur, Timur, Babur - Islamic society continued to shoot up these rocket-like personalities even down to the eighteenth century, and two of the last but of the very greatest were Nadir Shah and Ahmad Shah Abdali." If our lot is to be ruled by strongmen let us at least have someone on the lines of these "rocket-like personalities". What do we have instead? The likes of Ayub Khan, Yahya Khan, Zia-ul-Haq (discretion preventing me from going any further). It is enough to make the heart sink. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000219 ------------------------------------------------------------------- Swaying in the wind ------------------------------------------------------------------- Irfan Husain IF our most recent experience with military rule proves anything, it is the irrelevance of our political parties. In four months, they have been unable to formulate a coherent policy on how to deal with the present situation. Our two mainstream parties, the Pakistan People's Party and the Muslim League, are specially hamstrung by virtue of having ruled twice each in the last decade, and are hence the targets of concerted military accountability. As their leaders are facing legal action, the parties are hostage to their fate. And this personality cult is precisely the problem with politics in Pakistan: leaders centralize all authority and decision-making to such an extent that party structures - such as they are - are paralyzed into inaction when the top leadership is immobilized. Deliberately, a second tier is not encouraged to emerge. Of course the nature of the two parties is very different, although they may find themselves in a similar quandary at present. The Muslim League in all its many manifestations has traditionally been a handmaiden of the establishment. Even when it was in opposition to the PPP in the latter's brief stints in power in the last decade or so, the PML had the barely concealed support of the powers that truly matter in our context. By now, the cash handed over to top PML leaders by the ISI is well-documented; even the then army chief, Aslam Beg, has admitted to dishing out large sums to ensure electoral victory for the PML in 1990. If we trace the history of this party in the post-partition period, we find that in one form or another, it has been revived by authoritarian regimes to provide a fig-leaf of respectability for them. It has split again and again as every second homeless politician has used its name to gain public attention. It became a genuinely popular party for the first time under Nawaz Sharif, but then too, it had no tradition of resisting authority. The ex-PM, a past master at 'briefcase politics', had pockets large enough to buy key figures in the establishment without feeling the need to use political means. Indeed, as a protege of the military, Nawaz Sharif is unaccustomed to the rough and tumble of agitational politics. The PPP, on the other hand, was born as an opposition party, and although its leader, Zulfikar Ali Bhutto, strove for accommodation with the military, General Yahya and his henchmen kept him at arm's length. They were clearly unhappy with the PPP's electoral success in West Pakistan in 1970 as they had expected the resurrected Muslim League to perform far better than it actually did. To its credit, the party provided Zia with the only meaningful opposition he faced during his long and baneful rule. And Benazir Bhutto was the undoubted leader of the opposition, a role she played with great distinction and personal courage. Given this history of refusing to knuckle under to authoritarian rule, it is sad to see this party now reduced to the odd statement condemning the desultory and highly selective accountability process we are witnessing. Benazir Bhutto is trying to orchestrate events from abroad, but clearly, the party is suffering from her absence. And as she has always discouraged the emergence of a strong second tier, the PPP is effectively leaderless. There was some talk of her apolitical sister, Sanam, coming to Pakistan to fly the Bhutto banner, but even the hordes of sycophants in the party may balk at this. Nawaz Sharif's Muslim League, on the other hand, has been reduced to meetings in drawing rooms in Lahore and Islamabad in which nothing more than vague resolutions are passed. Meanwhile, it has been left to the ex-PM's wife, Begum Kulsoom Sharif, to make defiant statements against military rule. The famous 'heavy mandate' has been exposed as a fleeting fancy as Nawaz Sharif faces the maximum penalty and not a single significant demonstration in his support has been organized. The ANP, nominally a left-wing, democratic party, has also been unable to formulate a clear strategy. It, too, is being run as a family fiefdom, and is stuck between its socialist agenda and its tribal roots. While it excels at wheeling and dealing to form provincial coalitions, its significance at the national level has dwindled. Indeed, it can hardly be called a national party any more. The religious parties have traditionally been happy with undemocratic regimes as they have always been drubbed at the polls. Under the present dispensation, they are at par with the mainstream parties because now the size of a party depends not on parliamentary representation, but on the newspaper coverage they get. Also, apart from an initial public display of liberalism, General Musharraf has done and said nothing to disturb the reactionary agenda these parties have followed over the years. The MQM, Pakistan's largest ethnic party, has been largely neutralized after the coup. Having antagonized all potential allies. Altaf Hussain had high hopes of the army, but is now sorely disappointed over the provincial administration's refusal to accord his party any special consideration. Hence his reported threat to launch an 'armed movement.' But given the MQM's internal divisions and its current state of disarray, it is doubtful whether any movement will in fact be launched. Even under the decade of democracy that was ended last October, our political parties were largely disorganized and undisciplined groupings held together by personal ambitions and the leader's personal authority. Members were united more by common interest rather than a shared vision or ideology. Motivated mostly by greed and personal egos, they were quick to go to greener pastures whenever they thought it expedient. Party elections were seldom held in the mainstream parties, and potential challengers for leadership were never allowed to rise. This made them easy to manipulate and cow down. This lack of organization, discipline, principles and common goals (except the burning desire to get into the corridors of power) has spread revulsion and contempt for the political class. This, in turn, makes it easy for the military to walk in at will with considerable public support. When General Musharraf seized power four months ago, he was widely seen as a saviour. Clearly, much of the woes Pakistani politicians are currently facing are of their own making, and it is therefore hard to sympathize with them. Their arrogance and greed in power, and their refusal to cooperate with elected governments when they are in the opposition, have landed them (and the rest of us) in our present predicament. If there is little public sympathy for their plight, it is because they have not earned it. Until they do, they will continue swaying in the wind.
=================================================================== SPORTS 20000217 ------------------------------------------------------------------- Sri Lanka clinch one-day series against Pakistan ------------------------------------------------------------------- Ilyas Beg GUJRANWALA, Feb 16: Sri Lanka took an unbeatable 2-0 lead in the three-match one-day international cricket series against Pakistan after winning the second game by 34 runs at the Jinnah Stadium here on Wednesday in front of a capacity crowd. Skipper Sanath Jayasuriya led from the front with a superb all- round performance which earned the Man-of-the-Match award. He struck a splendid 65 to lay foundation of Sri Lanka's impressive score of 263 for six in 50 overs, and then took two wickets for 30 as Pakistan were bowled out for 229 in 45.1 overs. The last match of the one-day series, at the Qadhafi Stadium in Lahore on Saturday (Feb 19), will now only be of academic interest. Benefiting from the first use of the wicket when Pakistan captain Saeed Anwar won the toss and opted to field for the second time running, the Sri Lankan batsmen prospered against some wayward bowling. Besides Jayasuriya, the in-form Marvan Atapattu also scored a fine knock of 57, followed by useful contributions from wicket-keeper Romesh Kaluwitharana (32), Chaminda Vaas (34) and Russel Arnold (36 not out). Pakistan, who were docked one over because of a slow over-rate, once again failed to cope against the disciplined Sri Lankan bowling, which was backed up by brilliant fielding. A gallant knock of 68, the day's top score, by Yousuf Youhana was not enough to pull the Pakistan team out of trouble. Even a late charge by Wasim Akram, who hit four glorious sixes to electrify the crowd, proved a futile attempt by Pakistan to level the series. Wasim Akram hammered 34 off 29 balls and twice in succession hoisted off-spinner Muttiah Muralitharan out of the ground. Arnold and Pramodya Wickremasinghe were the other bowlers to suffer at Akram's hands. The rest of Pakistan batting was disappointing as only Aamir Sohail (23 off 32 balls), Saeed Anwar (17 off 13 balls), Younis Khan (28 off 44 balls), Moin Khan (15) and Abdul Razzaq (14) managed to reach double figures. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000216 ------------------------------------------------------------------- PCB plans to build strong team for World Cup ------------------------------------------------------------------- Reporter LAHORE, Feb 15: A plan to build a strong Pakistan team for the 2003 Cricket World Cup in South Africa has been envisaged and it will be unfolded in phases. A new pattern for the domestic cricket is ready but it will be made public after a PCB meeting on February 19 (Saturday), which will also be participated by nominees of associations of the country. Lt.-Gen. Tauqir Zia told media men at a local hotel on Tuesday that the current stalwarts would be given a befitting farewell in due course of time after grooming their worthy replacements. That would facilitate finding a nucleus of the Pakistan team, which could deliver the goods in the World Cup. He said that his colleagues in the advisory council were being consulted on all-important issues. Gen Tauqir said that Shoaib Akhtar was an asset of Pakistan cricket and the PCB fought to get the ICC ban on him removed but he was given an exemplary punishment simultaneously for misconduct because nobody was above the game. He said that Shahid Afridi was also an asset and with proper coaching he can be groomed into a consistent performer. The PCB chairman said that nothing would be concealed from media men. "I do not believe in concealing facts and covering them under the carpet. In the past that policy gave an opportunity to some irresponsible persons in indulging in witch-hunting and Pakistani cricketers were accused of betting and match-fixing without providing evidence. Vested interest, particularly foreign media also played up things unnecessarily. However, I expect the Pakistani media men to play a more positive role in building Pakistan cricket and they must not print or put on air things after verifying the facts from concerned quarters", said Gen Tauqir in an emphatic tone. He said that constructive criticism would always be welcomed. He had consulted all top-notchers but was looking forward to have a lengthy discussion with former Test stars Abdul Qadir and Majid Khan. He said that the PCB had a lot of funds and more were being generated to make infra-structure worthy of a "healthy cricketing nation". He said that 28 top players would be put in a hostel and the PCB would spend 6.6 million rupees annually to groom them into star performers. The PCB ad hoc committee chairman said that during the next season, starting from September 2000, the game would be organised on a new pattern. Services of top physiotherapists, sports medicine specialists and trainers would also be acquired. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000214 ------------------------------------------------------------------- PCB empowered to decide Shoaib's Test ban: Tauqir ------------------------------------------------------------------- Reporter KARACHI, Feb 13: The Pakistan Cricket Board (PCB) has been empowered by the game's governing body to decide itself if the bowling action of Shoaib Akhtar was legal or illegal, Lt-Gen Tauqir Zia told reporters at the National Stadium on Sunday. "As far as the International Cricket Council (ICC) is concerned, the Test ban on Shoaib Akhtar has been removed," the general said. The general denied impressions that the PCB will have to send fresh video tapes to the advisory panel to seek its views and approval on the speedster who was banned from international cricket because of a suspected bowling action. The general also dismissed reports that the ICC would see Shoaib's bowling action before Feb 26 before deciding whether to allow him to play in the Test series starting at Rawalpindi. "He is cleared as far as the ICC is concerned. The ICC said that it was referring the case back to PCB. "Now if the PCB feels that it is satisfied with Shoaib's bowling action, the board just needs to inform the ICC and field him in Tests," Lt-Gen Tauqir clarified in an emphatic tone. He added: "My understanding with the ICC is that if Pakistan thinks that Shoaib's action is alright, he is cleared to play." The general said Pakistan is already convinced that Shoaib's bowling action is absolutely legal and added that whatever remedial measures were to be done out have already been carried out. Lt-Gen Tauqir Zia stressed that if he today says that Shoaib Akhtar is cleared, then he is ready to play. "I will say it after I feel that it. Now since the whole case is in my court, therefore, I would like to be cent percent sure that whatever I say is the truth. "I have got the video footage of his bowling action from Perth and his action looks absolutely perfect," he said. He said Pakistan was not planning to dispatch a fresh video footage of Shoaib's bowling action to the ICC. "I just have to give the ICC my understanding that he has a legal bowling action and that's it. My assurance to the ICC is enough for him to play in Tests." The general agreed that the umpires can still call him for throwing but said there was a clause in the law book that the umpire will first have to caution him, then give him a final warning before calling him. "In Shoaib's case, this law was not followed. Secondly, the panel never had the powers to suspend Shoaib, and thirdly, the panel was given video footage of specific deliveries only and that too not in normal speed which was an essential requirement. Therefore, from the law and justice point of view, we got hold of all this and managed to get the pacer cleared." The general said the ICC were reviewing its nine-man advisory panel. He said there were many legal anomalies and lacunas which the ICC is trying to complete and may take a long time. He said Pakistan has suggested to the ICC that the advisory panel was too large. He said it has been recommended that the panel should be of three to four former fast bowlers with an odd batsman. "We have also shown our apprehension on this panel that since it has gone public and also because Mr John Reid was a complainant and was also sitting on the judgement, therefore, we thought that the ICC should reform the panel." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000217 ------------------------------------------------------------------- National snooker: Saleh and Yousuf joint top seeded ------------------------------------------------------------------- KARACHI, Feb 16: Six cueists will be making their debut during the National Snooker Championship which will commence at a hotel in Faisalabad from Feb 21. According to draws of the championship released here on Wednesday by the Joint Secretary, Pakistan Billiards and Snooker Association, (PBSA) Arif Teherbhoy, these players had qualified from the provincial Cups. The newcomers are Abu Siam, Muhammad Khurram, Farhan Nasir and Asif Ali Mughal all from Punjab, Shah Khan of NWFP and Shakir Rafiq from Sindh. Defending Champion Saleh Muhammad, who bad won four major titles in 1999 has been joined with top-seed Muhammad Yousuf. Farhan Mirza, Naveen Perwani, Khurram Agha are seeded two, three and four. Other seeded players are Muhammad Shafiq (5), Vishan Gir (6) and Atiq Latif Bakhsh (7). Former World Amateur Champion Yousuf is making his return to the national circuit after almost a year's absence. The PBSA banned Yousuf for breach of code of conduct but later an amicable out of court settlement between Yousuf and PBSA enabled him to return to the national championship. Muhammad Yousuf, 47, has dominated this competition, winning the crown for a record eight times, including six times in a row. This is the fourth time that national event is being staged outside Karachi. Peshawar, Islamabad and Lahore were other cities to stage the prestigious event. Leading 32 cuemen from all over the country are taking part in the nine-day championship which will conclude on Feb 29. The players are drawn in four groups and top two will advance into the quarter-finals. The championship carries an enhanced purse of Rs 159,000 with winner taking Rs 60,000, runners-up Rs 30,000, losing semi-finalist Rs 15,000 each and losing quarter-finalists taking home Rs 8,000 each. Cueist making highest break will get Rs 7,000. He said four Riley tables had been dispatched to Faisalabad with specialists who will fix them. The PBSA has appointed Shahnawaz Khan as Tournament Director for the championship. The pools are: Group "A": Saleh Muhammad (NWFP), Atiq Latif Bakhsh (Sindh), Arifullah (NWFP), Muhammad Akhlas (Sindh), Arshad Siddiq (NWFP), Mustufa Hyder (Bal), Farhan Nasir (Pun) and Minhas Malik (Sindh). Group "B": Muhammad Yousuf (Sindh), Vishan Gir (Sindh) Younus Amir Bakhsh (Sindh) Rizwnullah (Sindh), Abu Siam (Pun), Shah Khan (NWFP), Shakir Rafiq (Sindh) and Muhammad Hussain (NWFP). Group "C" Farhan Mirza (Punj), Muhammad Shafiq (NWFP), Shakeel A Bhatti (Sindh), Inamur Rehman (NWFP), Anil Bhawani (Sindh), Muhammad Khurram (Pun), Noman Alam (NWFP), Asif Ali Mughal (Punj). Group "D": Naveen Perwani (Sindh), Khurram Hussain Agha (Sindh), Imran Shahzad (Pun), Shameel Shah (Pun) S. Zartash Hussain (Sindh), Mahmood Khan (Bal), Mesam Zaidi (Sindh), and Sarwar Siddiqui (Sindh).-APP ------------------------------------------------------------------- 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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