------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 22 January 2000 Issue : 06/04 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Democracy, militancy figure in parleys + FIA to probe against Nawaz in fertilizer import case + US asks India, Pakistan to reduce tensions + New Delhi demands return of hijackers + Indo-US pact sends signal to Pakistan + Pakistan, India not N-weapon states: US + UN slams Islamabad over military spending + IMF team's visit delayed till end of month + Storming case: Appellant says plea according to SC rules + Parties oppose signing of CTBT + NAB to be challenged: GDA demands across-the-board accountability + Sedition charge dropped: Nawaz, others indicted in plane case + Greater US role called for Kashmir resolution + Quake rocks many parts of country --------------------------------- BUSINESS & ECONOMY + Washington to encourage investment in Pakistan + SBP relaxes curbs on forex regime + SBP eases curb on dividend remittances + Pakistan to lodge complaint with WTO + Tax authorities plan to come down heavily on evaders + Die cast for HBL privatization + KSE computer network fails again to absorb workload + Tax Ombudsman to take up major cases on priority + State Bank approval sought: ADBP plans for commerical banking + 44 FIA employees sacked + EPB chief assures exporters + 134 points gain in KSE index knocks off previous record --------------------------------------- EDITORIALS & FEATURES + The great rehabilitation department Ayaz Amir + Where corruption is a way of life Irfan Husain ----------- SPORTS + Razzaq inspires Pakistan to victory over India + Australia down Pakistan by six wickets + Wasim Akram first to claim 400 wickets

Democracy, militancy figure in parleys
Hasan Akhtar

ISLAMABAD, Jan 21: Assistant Secretary of State for South Asia Karl 
Inderfurth on Friday expressed the hope that the US concerns 
regarding terrorism, democracy, and regional peace had been 
by the Pakistan's military government.

He expressed his satisfaction that Chief Executive Gen Pervez 
Musharraf had "listened to at such length" the United States' 
extreme concern on spread of terrorism in South Asia and reiterated 
his commitment to restoration of democracy.

Inderfurth had held two-hour-long meeting with Gen Musharraf on the 
last day of his two-day visit to Pakistan.

He told a news conference at the American Center here on Friday 
that they had covered a wide range of issues of mutual concern and 
interest, with terrorism on top of the list.

Michael A. Sheehan, coordinator for anti-terrorism in the State 
Department and US Ambassador to Pakistan Milan were also present at 
the meeting.

Gen Musharraf informed Inderfurth of several steps his government 
envisioned while moving towards restoration of democracy.

The US official hoped that the Chief Executive would lay out 
publicly his plan in building a new and lasting democracy as soon 
as possible, in the same manner as he had done in other areas, soon 
after the military take over on Oct 12 last.

About the prospects of President Clinton's visit to Pakistan, Mr 
Inderfurth said, while the President was expected to visit South 
Asia early this year, the schedule for Pakistan was still 

At the outset, Mr Inderfurth read out a statement which, inter 
alia, stated that one of the key issues he had discussed in 
meetings with the chief executive and government officials, was the 
need for cooperation to reduce the threat of terrorism which, the 
US believed, stemmed from this region and directly threatened the 
US and Pakistan as well as the region and the world.

This was dramatically illustrated by the recent hijacking of an 
Indian Airlines plane from Kathmandu to Delhi last month, he said.

The need for a comprehensive roadmap with milestones for return to 
democratic civilian rule as soon as possible, Mr Inderfurth said, 
was another key issue which figured during the talks. He called for 
restoration of "a productive dialogue" with India.

The need for regional stability and the prevention of an arms race 
in South Asia was yet another important issue for Washington which 
came under discussion.

Highlighting the importance of the issues covered by him during his 
meetings here, he said: "All these measures, I want to add, we 
believe would enhance Pakistan's security". The purpose of his 
trip, he further said, was to discuss key issues of concern to both 
the countries, including terrorism, democratization, economic 
reform, halting the spread of nuclear weapons and ballistic 
missiles and promoting regional stability, specially through 
productive dialogue with India.

"Our meetings (with government leaders here) have been candid and 
useful as they should be between friends", the US assistant 
secretary stated emphasizing that these meetings came at "a 
critical time".

He added: "We all appreciate the willingness of the Pakistani 
leadership to make themselves available for these discussions".

KASHMIR: Responding to questions, Mr Inderfurth said the US was 
deeply concerned over the tension between Pakistan and India and 
pleaded that the two sides would deal with the issue of Kashmir in 
a practical manner.

He, however, expressed inability of a direct mediatory role of 
Washington in resolving the issue unless both sides sought the 
American role.

With respect to hijacking of the Indian plane, he said that he 
received assurance of the Pakistan government to track down the 
hijackers and bring them to justice. The US authorities, he said, 
were willing to extend whatever support needed to trace and arrest 
the hijackers.

Inderfurth said the US was pleased that the government in Islamabad 
had responded to Washington's complaints against activities of 
certain militant groups threatening American lives and property.

However, he said, he did not consider it appropriate to elaborate 
Gen Musharraf's response to US call to curb militant groups since 
the exchange of views was confidential but he found it satisfactory 
that there was an understanding here of America's concerns.

OSAMA: Asked whether the US sought Pakistan's help in the arrest of 
Saudi dissident Osama bin Laden who was indicted by a US court in 
an alleged bombing attacks on US embassies in Africa in 1998, the 
assistant secretary said that safe haven provided to Osama by 
Taliban with which Pakistan had very close relations, was a matter 
of deep concern to the US.

He hoped that it would be possible to bring bin Laden to justice.

As regards the extremist groups proclaiming violence against the 
Americans from the Pakistani soil, he said, the US serious concern 
over the existence of such groups had been conveyed to Pakistan. He 
believed that the militants acted not only against the US but were 
also bringing bad reputation to Pakistan internationally.

The assistant secretary and his team which included anti-terrorism 
coordinator Sheehan and Donald Camp of US National Security Council 
had a hectic programme of meetings on Friday with Pakistan 
ministers and officials.

Inderfurth and his team also spent 90 minutes with Foreign Minister 
Abdul Sattar, Finance Minister Shaukat Aziz and Interior Minister 
Moinuddin Haider.

A Pakistan government statement said that during the meeting with 
Karl Inderfurth, the Chief Executive emphasized the importance of 
Pakistan's long-standing relations with the US and underscored 
Islamabad's efforts to promote peace and harmony in the region and 
to seek peaceful resolution of all disputes with India, 
particularly Kashmir issue. With regard to nuclear non-
proliferation, the Chief Executive mentioned the need to evolve a 
national consensus on the signing of the CTBT.

AFP adds: Inderfurth, who is responsible for South Asia, said 
terrorism was top of the agenda in his talks with senior Pakistani 
officials but he declined to say if Musharraf had made a promise to 
combat militant groups.

But Inderfurth said the CE did have "steps" in mind. Inderfurth 
also urged Pakistan to sign the Comprehensive Test Ban Treaty, 
although Washington itself has not ratified the treaty. But he said 
Pakistan still had a right to its nuclear deterrent.

"Signing does not compromise Pakistan's right to maintain a 
deterrence," he said.

FIA to probe against Nawaz in fertilizer import case
Our Correspondent

ISLAMABAD, Jan 21: The government has ordered a probe against Nawaz 
Sharif and a former minister, Abdul Sattar Lalika, for allegedly 
importing damaged Triple Phosphate Fertilizer worth Rs52 million 
from China, during the 1998-99 season.

An FIA inspector, Hazrat Ali, has been appointed as the inquiry 
officer of the case.

Sources said the Ministry of Food, Agriculture and Livestock 
(Minfal) has directed the FIA to produce the relevant record of 
import and the names and addresses of the concerned officials, 
dealing with the import of fertilizers.

Official sources told Dawn, here on Friday, that earlier, the same 
case had been brought to the notice of the National Accountability 
Bureau (NAB). However, instead of acting on their own, they 
directed the Federal Investigation Agency (FIA) to investigate the 
matter and submit their findings to it so that further action could 
be taken, against the two prime- accused, in a court of law.

Sources said the FIA has reported that top officials of the 
relevant ministry have also been reportedly involved in the import 
of fertilizer from China and that the inquiry has been initiated. 
They alleged that Mr Sharif and Mr Lalika had connived with Minfal 
officials for importing substandard Triple Phosphate Fertilizer 
(TPF) from China which had been labelled 'misfit and damaged.'

Sources said the agriculture ministry has been asked to provide 
relevant records to the FIA officials.

US asks India, Pakistan to reduce tensions
Shaheen Sehbai

WASHINGTON, Jan 18: The State Department on Tuesday urged both 
India and Pakistan to do whatever they could to reduce tensions but 
a senior official declined to blame India alone for escalating 
tensions by deciding to increase the number of troops on the border 
with Pakistan.

"I will not point fingers at India alone," the official said when 
asked to comment on an Indian government decision that troops on 
the international border with Pakistan and the Line of Control 
would be increased to control what they allege is cross border 

"We think it is important for India and Pakistan to reduce the 
violence," the official said as Indian Foreign Minister Jaswant 
Singh met Deputy Secretary Strobe Talbott in London on Tuesday.

Reports in the Indian media on Tuesday talked of a major decision 
by the Vajpayee government to set up an additional unified 
headquarters in Jammu and Kashmir and raise more specialised 
battalions of paramilitary forces specially trained for counter-
insurgency operations.

The decision was taken at a high level meeting on Kashmir held at 
the Prime Minister's residence on Monday night.The home minister, 
defence minister, J&K governor Girish Saxena, chief minister Farooq 
Abdullah, Army chief V.P. Malik and several senior officials of the 
home ministry and Intelligence Bureau attended the meeting which 
was presided over by Vajpayee, the reports said.

The key decision taken by the meeting was to enhance deployment 
along the international border with Pakistan and Line of Control 
and divide the counter-insurgency grid into 49 sectors as part of a 
three-tier command and control structure new headquarter.

While the state police and intelligence units were being already 
strengthened, security forces had been asked to identify and adopt 
a proactive approach against terrorists in the hinterland and 
establish area domination, Indian reports said.

They said a special operation was also being launched against 
terrorists with the help of retired soldiers and members of Village 
Defence Committees (VDCs) to curb infiltration and ex-filtration. 
It was decided to integrate the VDCs with the counter-insurgency 
grid and provide them with sophisticated arms and ammunition.

New Delhi demands return of hijackers
NEW DELHI, Jan 15: India asked Pakistan on Saturday to extradite 
the five hijackers of an Indian Airlines Airbus to stand trial 
here, the foreign ministry said.
The official demand is the first by India since Dec 31 when the 
hijackers released 155 passengers in Kandahar and reportedly 
"crossed its borders into adjoining Pakistan."
Pakistan's High Commissioner to India Ashraf Jehangir Qazi was 
summoned to the foreign ministry on Saturday and the demand was 
handed over to him by Indian Foreign Secretary Lalit Mansingh.
Qazi was "told that India expected Pakistan to take necessary 
measures to apprehend the hijackers and their accomplices present 
in Pakistan and extradite them to India for prosecution," the 
ministry said in a statement.
The strongly-worded statement said: "This would be in fulfilment of 
Pakistan's obligations under international conventions to which it 
is a signatory.
"Qazi was also informed that India reserves the right to take 
further measures as appropriate," the statement said without 
He was told "Islamabad's support to acts of terrorism, including 
the hijacking and subsequent anti-India public statements in 
Pakistan by Masood Azhar were in contravention" of a 1972 bilateral 
peace act, it said.
A foreign ministry spokesman on Saturday said New Delhi asked 
Islamabad for the extradition "only after studying legal 
implications of the issue."
The spokesman also claimed that India had proof the hijackers 
crossed the Afghan border and found sanctuary in Pakistan.
"Given that a large number of terrorists whose release was sought 
by the hijackers are Pakistani nationals and that the first 
destination chosen by the hijackers was Lahore, there was strong 
ground to belie-ve that the hijackers were cur-rently in Pakistan," 
he argued.-AFP

Indo-US pact sends signal to Pakistan

NEW DELHI, Jan 20: India and the US have agreed to form a joint 
working group to counter terrorism, marking a small victory in New 
Delhi's campaign against alleged Pakistani involvement in terrorist 

During two days of talks in London that ended on Wednesday, both 
sides also agreed to work together to bring the perpetr ators of 
last month's Indian Airlines hijacking to justice.

India has produced what it says is incontestable proof that the 
hijackers were Pakistanis, and insists they are currently being 
sheltered in Pakistan - charges denied by Islamabad.

Analysts here said India would be happy with the outcome of the 
talks between Foreign Minister Jaswant Singh and US Deputy 
Secretary of State Strobe Talbott, with the focus having clearly 
shifted from the nuclear non-proliferation concerns of previous 

While the US has so far rejected India's appeals for Pakistan to be 
labelled a terrorist state, the Times of India said on Thursday the 
decision to form a joint working group (JWG) was "an implied 
endorsement of New Delhi's concern over cross-border terrorism 
sponsored by Islamabad." The JWG is scheduled to hold its first 
meeting in Washington in early February.

In a BBC interview broadcast here on Thursday after the London 
talks, Singh said the decision was "not a consequence of the 
hijacking alone, but an agreement to work together to combat the 
international menace of terrorism."

While stressing India's commitment to "dialogue and reconciliation" 
with Pakistan, Singh appeared to rule out any talks with the 
military regime headed by General Pervez Musharraf, who seized 
power in a bloodless military coup in October.- AFP

Pakistan, India not N-weapon states: US
Shaheen Sehbai

WASHINGTON, Jan 15: Pakistan and India would never be accepted as 
nuclear weapon states under the NPT, said a US official.
"We are not prepared, and I don't think the members of the NPT 
would accept the idea that (these countries) should be formalized, 
recognized and accepted in the NPT," Under-secretary for arms 
control and international security John Holum said in a Worldnet 
Asked about India and Pakistan as both of these states had now 
tested nuclear devices and in a sense were nuclear weapon states, 
Holum admitted that this was "a reality" but then refused to accept 
His answer was: "On the question of India and Pakistan becoming 
formally nuclear weapon states under the NPT, it's not possible 
under the treaty - we don't support it.
"There is a reality on the ground in India and Pakistan, (but) we 
are not prepared, and I don't think the members of the NPT would 
accept the idea that this (status) should be formalized, recognized 
and accepted in the NPT."
He said the treaty began from the proposition that there were five 
nuclear weapon states who undertook to negotiate ultimately towards 
nuclear disarmament. It doesn't accept that there should be 
additional nuclear weapon states.
Holum said the US was engaged in an effort led by Deputy Secretary 
of State Strobe Talbott to prevent the problem from getting worse, 
to prevent more nuclear tests, to prevent production of more 
fissile material, to deal with the export problem, to deal with the 
very critical issue of how they will manage their nuclear 
capability in terms of deploying forces, and also to deal with the 
crucial issue that divides India and Pakistan, that of Kashmir.
So there has been a diplomatic effort under way. The CTBT signature 
would be an important part of that, something the President will 
certainly place a heavy emphasis on both in the time leading up to 
his trip and then when he does go to India, he said.

UN slams Islamabad over military spending

BANGKOK, Jan 20: UN officials hit out at Asian states, especially 
Pakistan and Myanmar, on Thursday for boosting military spending at 
the expense of education and other basic social services.

Kul Gautam, the United Nations Children's Fund Asia-Pacific 
director, told a news conference after a regional education 
conference that global military spending had fallen since the end 
of the Cold War, but spending on arms in Asia had risen.

"It's often a question of resources, but it's also a question of 
priorities," he said. "If governments so choose they can give a 
high priority to education.

"How come countries with similar GNP per capita have widely varying 
achievements in education? Pakistan has a higher GNP than Vietnam, 
but Vietnam has three times the literacy - or Myanmar and Vietnam?" 
he said.

"So it's not a matter that we are too poor but where we put the 
priorities," he said.

"Some of the countries that are actually reducing expenditure on 
health and education are increasing expenditure on the military. 
Obviously there is enough money but it is not going to the right 

IMF team's visit delayed till end of month

ISLAMABAD, Jan 18: The seven-member mission of the International 
Monetary Fund to hold negotiations on release of $280 million of 
next tranche under ESAF/EFF and on poverty alleviation programme 
has been delayed, an official said on Tuesday.

The mission, led by Ms Sena Eken was expected on January 17. "Now 
we are expecting the team by the end of the current month or early 
next month," the official told. When contacted IMF official in 
Islamabad said, "we have not yet received the schedule of the 

The Fund's country representative in Pakistan has already started 
preliminary meetings with the officials of the Central Board of 
Revenue, the Planning Commission and Finance Ministry.

A government official added the visit is very much on. Analysts, 
however, said that the IMF was not very much pleased with the 
government's decision to implement General Sales Tax in the next 
budget, and is therefore delaying the visit to pressurize the 

Earlier Finance Minister Shaukat Aziz and International Monetary 
Fund's country office had confirmed that the mission was due just 
after Eid.

Since July 1999, Pakistan is waiting for release of the next 
tranche under ESAF/EFF programme that was blocked due to sanctions 
imposed after the country went nuclear in May 1998.-NNI

Storming case: Appellant says plea according to SC rules
Bureau Report

ISLAMABAD, Jan 20: Shahid Orakzai, the appellant in the storming of 
the Supreme Court case, on Thursday stated that like every citizen 

of the country he too was shocked at the acquittal of the PML 
legislators for lack of evidence, and was "aggrieved" by the court 

He was replying to the objections raised by the PML lawyer that the 
appellant was not the aggrieved person according to law and his 
appeal should not be entertained by the court.

Mr Orakzai who had started his arguments on Tuesday completed them 
on Thursday. The Attorney General Aziz A. Munshi will start his 
arguments on Friday.

The AG was not present in the courtroom on Thursday due to his 
engagement in the cabinet meeting.

All the PML parliamentarians who were earlier acquitted of the 
contempt of court charges - Tariq Aziz, Mian Munir, Chaudhry 
Tanveer, Sardar Nasim, Akhtar Mehmood Advocate, and Shahbaz Goshi- 
were present in the courtroom.

The appellant stated that he had filed the appeal in accordance 
with the SC rules. He said that under the law the Attorney General 
was the prosecutor in the contempt of court matters. But the former 
attorney general assigned the job to the Deputy Attorney General 
(DAG) who did not perform his duties properly.

Had the DAG performed his duties well, he would have been saved 
from filing the present appeal, the appellant added.

The appellant further stated that 53 persons were asked to record 
their statements in the case and the prosecutor (DAG) had not asked 
a single question from the 33 people.

The court asked him to give reasons for his being aggrieved and 
avoid criticising the law officers for failing to perform their 
role. The appellant said that he had nothing personal against the 
PML but in the storming case the party could not be spared.

He said the Constitution had prohibited propaganda against the 
judiciary and the armed forces.

The appellant said that his appeal was not time barred as argued by 
the PML lawyers. Chief Justice Saiduzzaman Siddiqui observed that 
an appeal could be filed within 60 days. Justice Irshad Hasan Khan 
observed that the apex court had the powers to even enhance the 
period for the filing of the appeal. The AG would start his 
arguments on Friday. 

Parties oppose signing of CTBT 

KARACHI, Jan 18: Almost all the religious and political parties are 
united against signing the Comprehensive Test Ban Treaty (CTBT) as 
it would harm the national interests.

This was the consensus of the speeches delivered by leaders of 
different political and religious parties at the 'All-parties Anti-
CTBT conference', organized by the Jamaat-i-Islami on Tuesday. The 
moot was presided over by Prof Ghafoor Ahmed.

Referring to the campaign being carried out to mould the public 
opinion in favour of the CTBT, Prof Ghafoor warned the military 
rulers against taking any such step. He advised Gen Pervez 
Musharraf to weigh the national consensus and sentiments of the 
people on the issue.

NAB to be challenged: GDA demands across-the-board accountability

RAWALPINDI, Jan 19: The 19-member Grand Democratic Alliance (GDA) 
in a five-hour-long meeting on Wednesday, at the Dir House, 
Peshawar Road, decided to challenge the legality of the National 
Accountability Bureau (NAB) in the Supreme Court and announced the 
formation of four committees to pursue its political objectives.
The meeting was presided by ANP President Asfandyar Wali Khan and 
attended by the representatives of the GDA constituent parties.
Calling the NAB Ordinance 'a black law,' he said that GDA reviewed 
the entire issue at length and reached the conclusion that it must 
be challenged before the superior courts. He said a committee, 
under the chairmanship of Aitzaz Ahsan, was formed at the meeting 
on Wednesday. The other members of committee are Iqbal Ahmed Khan, 
Aftab Shiekh (MQM), Barrister Bacha, Ch Farooq, Hamid Ali Khan 
(PTI) and Qaim Ali Shah.
Briefing newsmen, Asfandyar Wali Khan said the GDA had held 
detailed discussions on the prevailing political situation, the 
agenda of accountability by the present government and the 
Alliance's point of view on these issues.
He said the GDA stood for across-the-board and transparent 
accountability. He said that the constituents parties of the GDA 
stood for accountability not only of political workers but also of 
the civil and military bureaucracy as well as that of the 
He accused the present government of targeting only political 
workers by the accountability process. "There are no 'angels' in 
any one particular section of society (implying politicians)," he 
said, adding that "We, the politicians, are open to accountability 
but we want others to be open to accountability too." He emphasised 
that there was no such thing as 'in-built accountability.'
Touching on the present government's emphasis on the devoluation of 
power, Mr Khan said that the government had talked a lot about 
removing the sense of deprivation, due to the lack of autonomy in 
the provinces but not much had been done in practical terms. He 
said that the GDA was of the firm view that there should be 
provincial autonomy, as guaranteed under the 1973 Constitution and 
it should be transferred to districts.
However, he said there has not been any transfer of autonomy to the 
provinces. He said that typically a deputy commissioner draws up 
the list of the nominees for district boards and a major vets such 
a list. He said this procedure had also been followed in the Basic 
Democracies System of the Ayoob era.
He said that these officers demanded information about the 
political affiliations of all nominees. He said that under a 
democratic system, the people who elect their members were 
responsible for accountability of their nominees. He said the 
present system of devolution of power was worse than the Basic 
The ANP leader said that there was talk of evolving a new system 
but he questioned under what authority would amendments be made in 
the Constitution.
Mr Khan said that the country needed and could survive only as a 
truly federal parliamentary system. "(The) 1973 constitution was 
unanimously approved by the elected representatives of Pakistan and 
as such Pakistan can survive under a truly federal parliamentary 
system as a State," he said.
He said that "from 1947 to 1973 we had been unable to provide the 
country with a Constitution."
Mr Khan said that the present government had promised good 
governance but he regretted that people were being put behind bars 
without any charge for days. He said that even during the time of 
the French Revolution the accused were not kept under imprisonment 
without framing a valid charge.
Sedition charge dropped: Nawaz, others indicted in plane case

KARACHI, Jan 19: Deposed prime minister Nawaz Sharif and six others 
were formally charged in the October 12 plane conspiracy case on 
The presiding judge of anti-terrorism court No. 1, Rehmat Husain 
Jafri, framed charges of hijacking the plane, kidnapping and 
attempting to murder the passengers on board and creating terror 
against former PM, Nawaz Sharif, former Punjab Chief Minister, Mian 
Shahbaz Sharif, former principal secretary, Saeed Mehdi, former 
chief of the Ehtesab Cell, Saifur Rehman, former advisor to then PM 
on Sindh affairs, Syed Ghous Ali Shah, former PIA chairman, Shahid 
Khaqan Abbasi, and ex-IGP, Sindh, Rana Maqbool Ahmed.
The court, however, dropped the charges of hatching criminal 
conspiracy to commit an offence punishable by death (section 120-B 
of PPC); waging war against Pakistan and conspiring to wage such 
war (121 and 121-A); and the charge of collecting men and arms to 
wage war against Pakistan.
In his short order the judge observed that after pursuing the 
documents of case and arguments there appeared no tangible evidence 
for framing of charges under sections 12, 121-A, 122 of the PPC. 
"The provision of section 120-B is also not attracted as it is 
applicable before the offences are committed and section 123, PPC, 
is also not attracted as it relates to the persons other than 
accused persons, but the court is of the opinion that the charge 
can be framed for offences punishable under section 365, 402-B, 
324, 109, 114 PPC and section 7 (ii) of A. T. Act", the order said.
The judge charged the defendants for hatching conspiracy in the 
Prime Minister's House on October 12 between 5pm to 7:50pm and 
unlawfully seizing the control of the flight No. PK-805 by taking 
the control of air traffic control by use of force. Thereby, the 
accused were charged with the commission  of an offence punishable 
under section 402-B read with sections 109 and 114 of the PPC.

The accused were also charged with attempting to kill 198 
passengers on board including chief of army staff by not allowing 
the flight to land anywhere in Pakistan. They were charge-sheeted 
under section 324 read with sections 109 and 114 of the PPC for 
this offence.
The seven accused were also charged with the kidnapping of the 
passengers, including the chief of army staff, under section 365 
read with sections 109 and 114 PPC.
The fourth and the last charge framed on all seven accused 
pertained to creating terror under section 7 (ii) of the ATA.
As many as 16 female family members of the former prime minister 
and others were present in the court when the judge formally 
indicted the seven accused in the case.
As the judge asked the deposed prime minister whether he pleaded 
guilty or not guilty on the charge of hijacking, Nawaz Sharif said 
the plane was actually hijacked by General Pervez Musharraf. 
Despite judge's reminder, he went on saying: "The democracy has 
been hijacked in the country".
He also said that he had learnt about the allegations against him 
only on Nov 19 when he was first produced before the ATC-1 judge.
The judge framed the charges on the accused after hearing the 
arguments of both the prosecution and the defence sides.
Before pleading the guilt or otherwise, the court allowed the 
defence counsels to talk to accused Nawaz Sharif, his brother 
former Punjab Chief Minister Shahbaz Sharif, ex-Chief of 
Accountability Cell Saifur Rehman, Nawaz's former Advisor on Sindh 
Affairs Syed Ghaus Ali Shah, former IGP Sindh Rana Maqbool Ahmed, 
former Chairman PIA, Shahid Khaqan Abbasi and ex- Principal 
Secretary to the Prime Minister Saeed Mehdi.
Advocate-general Raja Qureshi, assisted by special public 
prosecutor, Ilyas Khan, submitted that a conspiracy did take place 
in PM house and its consequences ensued in Karachi.
At the very outset of arguments, the judge ruled that section 120-B 
and 121 of the PPC were not applicable in this case under the law.
Ijaz Batalvi, defence attorney, vehemently opposed the charge of 
waging war on the defendants and said there was no evidence against 
his clients.
The AG said the statements of approver and another prosecution 
witness were there on record and evidence of waging war was eminent 
from the statement of Brig. Javed Iqbal, the then military 
secretary to the deposed prime minister.
Greater US role called for Kashmir resolution
Hasan Akhtar

ISLAMABAD, Jan 20: A four-member US senators' team, which recently 
visited Pakistan, has stressed on increasing involvement of the 
United States to resolve Kashmir Issue.

The senators in a statement, issued from Washington and circulated 
by the US Information Service here on Thursday, expressed cautious 
optimism that Pakistan would "soon begin addressing our concerns 
and make a successful transition to democracy".

The team, led by Senate Democratic leader Tom Daschle, had visited 
Islamabad from Jan 13 to 15. The team had also visited New Delhi 
and Kathmandu, during their South Asian tour.

The statement recognized the importance of a just settlement of the 
Kashmir dispute, and stressed that "the United States must continue 
to become increasingly involved in resolving the Kashmir dispute".

It warned against deterioration of Pakistan-US ties if Islamabad 
does not remove Washington's concern over terrorism, nuclear non-
proliferation, Islamic militancy and religious freedom.

It listed five specific "significant" concerns to the US, which 
included terrorism and militant religious fundamentalism, a road 
map for the restoration of democracy, adherence to the 
Comprehensive Test Ban Treaty (CTBT) and assurance for political, 
religious and economic freedom of all its citizens.

It stated: "For five decades Pakistan has been a loyal and trusted 
friend of the United States, however, for a variety of reasons this 
relationship is now at crossroads. Pakistan faces a window of 
opportunity for improving upon this relationship but that window 
could close if there is no progress in addressing the concerns we 

Senator Daschle, who was accompanied by assistant Democratic leader 
Harry Reid, Senator Christopher Dodd of foreign relations committee 
and Daniel Akaka, a ranking member on the non-proliferation sub-
committee, had met Gen Pervez Musharraf and Foreign Minister Abdus 

The team had also met representatives of the Pakistan Muslim 
League, other opposition parties and the human rights bodies and 
held discussions with them.

The statement said that the senators stressed the five key 
concerns, which they maintained, must be addressed. These include: 
Threat of terrorism and militant religious fundamentalism both 
within Pakistan and international; public declaration of a road map 
for restoration of democracy with a firm time-line and clear -6-
#�objectives; economic reform in order to create the conditions 
that will permit democratic reforms to take root; signing the CTBT 
and contribution to international efforts to control the spread of 
nuclear weapons and to ensure the political religious and economic 
freedom of all its citizens.

"Based on our meetings with Gen Musharraf and others we are 
cautiously optimistic they will soon begin addressing our concerns 
and make a successful transition to democracy", the senators said.

About their conclusions after discussions with officials and public 
figures in India, the US senators said they had impressed on the 
Indians that if India was to reach its potential, it entailed 
rights and responsibilities which included "normalizing their 
relationship with Pakistan, engaging in a sincere effort to resolve 
the Kashmir crisis and joining other responsible parties in the 
effort to stem the spread of nuclear weapons".

It further stated that the US and India had the opportunity to 
significantly strengthen their relationship and observed: "The 
United States must continue to become increasingly involved in 
resolving the dispute over Kashmir. India needs to sign CTBT 
immediately and increase its efforts to improve regional 

Quake rocks many parts of country

ISLAMBAD, Jan 19: An earthquake, measuring 6.0 on the Richter 
scale, rocked many parts of the country and Afghanistan on 
Wednesday. There were no reports of any casualties or damage caused 
by the tremors which shook Islamabad, Peshawar, Chitral, 
Rawalpindi, Lahore and Mansehra. Officials at the seismic centre in 
Peshawar said the quake registered 6.0 on the Richter scale and its 
epicentre lay 250 kilometres north in the Hindukush range in 
People of the twin cities rushed out of their homes and offices at 
about 1210 hours after they felt severe tremors. Mothers were seen 
rushing to schools to know about the safety of their children.
The earthquake was so strong that a majority of the residents 
remained outside their homes for quite some time as they were 
fearing more tremors and aftershocks. Islamabad residents said the 
tremor lasted less than 10 seconds but workers in high-rise towers 
said it was strong enough to make their buildings sway alarmingly. 
Reports from Afghanistan said that the quake was so strong that 
residents in Kabul and Jalalabad panicked and rushed out into the 

Washington to encourage investment in Pakistan
Ihtashamul Haque

ISLAMABAD, Jan 21: The United States has assured to help bring 
foreign investment to Pakistan, but called for an early resolution 
of the IPPs problem on priority.

The US Assistant Secretary of State, Karl Inderfurth held here on 
Friday an hour long meeting with Minister for Finance Shaukat Aziz 
and told him that the Clinton Administration would certainly 
encourage the Americans to invest in Pakistan.

However, according to official sources, Inderfurth urged the 
finance minister to create an enabling environment for foreign 
investment by settling the long outstanding issue of Independent 
Power Producers (IPPs).

The finance minister told the US Assistant Secretary of State that 
the issue has been taken up for the first time "very seriously" by 
the military government. He said Wapda has been directed to 
negotiate the issue with the power companies.

Inderfurth expressed the desire of the US government to have a 
stronger economic relation with Pakistan and assured that his 
government will extend its cooperation to develop the economy of 

The sources said that the finance minister pointed out during the 
meeting that tariff issue with eleven IPPs has been resolved and 
that the new terms and conditions with the remaining power 
companies were being finalized.

 He referred to Hub Power Company (Hubco) and said that differences 
with it were also being resolved on priority. He said the 
government has withdrawn a case against Hubco for alleged meter 
tempering as gesture of goodwill.

The sources said that the finance minister told the visiting 
dignitary that China was also making investment as the law and 
order situation had greatly improved in Pakistan.

The finance minister also briefed him about the recovery of 
defaulted loans and said that the Corporate and Industrial 
Restructuring Corporation was being set up to manage bad loans in 
order to reduce the intermediate costs of the banks.

 The government, he said, was pursuing policies to build investor 
confidence with domestic and overseas investors to promote economic 

He further briefed Inderfurth about monetary and fiscal policies 
perused by the government to stabilize the economy and enhance the 
economic activity for a sustainable growth.

The finance minister said that Pakistan was currently on its debt 
repayments with international agencies and has more liberalized 
foreign exchange regime.

Aziz said that poverty alleviation was a key agenda item of the 
government's economic development programme and the government was 
about to launch projects/programmes.

The finance minister indicated agriculture, small and medium 
industries, oil and gas, development of software and information 
technology as the major areas for economic growth.

He outlined the initiatives to being an end to culture of the 

The US Assistant Secretary of State appreciated the efforts made by 
the government to enhance the economic growth and said that 
economically a stable Pakistan could play its role more effectively 
in the region.

The US Ambassador was also present during the meeting, besides 
other senior government officials.

SBP relaxes curbs on forex regime

KARACHI, Jan 18: In order to further liberalise the foreign 
exchange regime in the country, the State Bank of Pakistan (SBP) 
has taken a number of steps, a SBP statement said on Tuesday.

It said firstly, it has restored the powers of banks (and 
authorised dealers in foreign exchange) with regard to remittances 
which had been withdrawn in July, 1998.

Banks will no more require the approval of the State Bank in case 
of remittances of the following nature:

On account of principal, interest etc on the basis of repayment 
schedules registered with the State Bank or private sector. On 
account of royalty and technical fee. On dividends to non-resident 

 On instalments of principal and interest of foreign currency loans 
by Pakistani firms and companies on the basis of repayment 
schedules, registered with the State Bank. 

Secondly, the State Bank has also restored the facility of imports 
without opening of letters of credit (LCs) of those commodities 
which are not subject to any margin restrictions.-APP

SBP eases curb on dividend remittances
Mohiuddin Aazim

KARACHI, Jan 18: The State Bank on Tuesday allowed remittance of 
dividend to non-resident shareholders and eased off some other 
restrictions on foreign exchange outflow imposed in 1998.

A SBP circular (FE no 1) issued to banks said, remittance of 
dividend to non-resident shareholders had been allowed but such 
remittance would require documentation with the State Bank.

The circular said remittance on account of principal and interest 
on the basis of repayment schedules registered with SBP had also 
been allowed with immediate effect.

But it said, the permission was meant for only private sector 
excluding those organisations that are owned 51% or more by the 
government. The circular said, remittances on account of royalty 
and technical fee admissible under foreign exchange rules are also 

SBP said remittance of instalments of principal and interest of 
foreign currency loans by Pakistani firms and companies are also 
permitted. But the circular made it clear that remittances of this 
nature would be made on the basis of repayment schedules registered 
with SBP. It said remittance of principal and interest on account 
of foreign currency loans obtained by foreign controlled companies 
for working capital requirements were also allowed.

SBP has also restored the facility of imports without opening of 
letters of credit of those commodities that are not subject to any 
cash margin requirements. This facility was withdrawn in July '98. 
Currently industrial raw materials; machinery and its components 
and about a dozen essential items including wheat and petroleum 
products enjoy exemption from cash margin requirements.

Commenting on the easing off of restrictions on forex outflow 
Karachi Stock Exchange Chairman Arif Habib said: 'It is a very 
positive development.' Talking to Dawn by telephone he said: 'It 
sends a good signal abroad. It would impact positively on the 

The stock market has been bullish for past one week breaking record 
of a single session trading.

Arif Habib said gradual phasing out of restrictions on forex regime 
and the stability of rupee in inter-bank and open market were also 
among the factors that led KSE 100-share index to new highs. He 
identified five factors that he felt had a positive impact on the 
market namely (i) bumper cotton crop (ii) targeted revenue 
collection in the first half of the fiscal year (iii) cut in 
lending rates (iv) stability of rupee and (v) phasing out of 
restriction on forex regime.

COMMITTEE: In the mean time SBP has constituted a committee to 
recommend procedure for free outward remittances out of foreign 
portfolio investment.

The committee to be headed by a SBP official is made up of two 
nominees each from KSE and CDC and heads of three custodian banks-
Citibank, Deutsche Bank and Standard Chartered.

Pakistan to lodge complaint with WTO
Rauf Klasra

ISLAMABAD, Jan 15: Pakistan has decided to lodge a complaint with 
the World Trade Organization (WTO) against India for banning cotton 
import and damaging its reputation in the world trade markets.

Pakistan will also request the WTO secretariat to take punitive 
action against India for its step to ban cotton import as it has 
hurt the cotton trade of Pakistan.

Decision to approach the WTO was taken here on Saturday by the top 
officials of ministry of finance, agriculture and commerce.

However, the announcement to the effect was made here on Saturday 
by the ministry of food, agriculture and livestock (MINFAL).

Dr Zakir Hussain, cotton commissioner MINFAL while making this 
statement to the press said, Indian decision has greatly hurt the 
Pakistan cotton trade and "we will approach WTO to take action 
against India for this unjust decision."

Elaborating Pakistan's point of view on this sensitive trade issue, 
Dr Zakir has pointed out that Indian government has banned the 
import of cotton from Pakistan on the allegation that their stalks 
in the imported consignment carry exotic strains of destructive 
bacterial, viral and fungal disease which are virulent under Indian 
climatic conditions.

Cotton commissioner Zakir regretted that Indian government has 
politicized cotton trade with Pakistan by issuing a notification: 
"Pakistani cotton is prone to destructive bacterial viral and 
fungal diseases".
Dr Zakir rejected Indian allegations saying these are absolutely 
baseless. He was of the view that its' common fact that Pakistani 
cotton crop does not carry such diseases. Pakistan has not received 
any such complaint from importers of any other country in the last 
50 years crop history, Dr Zakir claimed.
He added, "cotton export is done on the basis of pre-inspection at 
the port or landed quality subject to the verification of 
internationally inspectors. Further more, the exported cotton is 
fumigated, therefore, the question of bacterial fungal or virus 
disease does not arise at all". 
Cotton commissioner said Pakistan cotton is virus resistant and 
while currently Indian cotton is experiencing the havoc results of 
cotton leaf curl virus (CLCV).
Tax authorities plan to come down heavily on evaders

KARACHI, Jan 20: On completion of Master Index for tax evaders, the 
authorities have chalked out an extensive plan of crackdown to be 
carried out soon after exhaustion of other options of recovery and 
registration, official sources said.

The Master Index provides all necessary information and details of 
tax evaders, as well as of those who have, somehow until now, 
managed to stay away from the tax net, sources said.

Besides, the official information the tax authorities took full 
advantage of available information based on utility bills, 
government records etc. They also collected specific particulars 
from relevant government agencies to identify immovable assets.

Sources disclosed that prior to taking any stern action the 
authorities are keen to resolve the matter amicably with the help 
of representative bodies of each segment of trade and those of 

Presently the tax authorities are under a process of entering into 
negotiation with different representative bodies of market places 
and are optimistic that it would produce good results.

"Use of coercive measures had always been a last resort for tax 
authorities for the recovery of tax and even today we are hopeful 
to net around half a million new taxpayers in the southern region," 
an official said.

Above all, there is a major shift in our priorities and under the 
CBR directives, the tax authorities are working on expanding tax 
net rather than putting their energy on those who are already 
paying taxes, official sources added.

The Master Index besides helping the authorities to bring new 
taxpayers into the net will also be beneficial in determining the 
volume and quantum of activities of a business or industrial 
establishment, they maintained.

Prepared with the help of physical survey carried out by the 
department of each area and official documents the 'Master Index' 
will be the basis of any future action plan of the tax authorities, 
the sources said. The Master Index spread over several volumes 
identifies taxpayers on the basis of official zones as well as on 
geographical locations. This will assist the authorities to enter 
into negotiations with respective representative body of each area 
and market place.

Die cast for HBL privatization 
Shaukat Ali
LAHORE, Jan 16: Modifying an earlier plan of only partial disposal 
of the Habib Bank Limited, the Privatization Commission has now 
decided to completely privatize what undoubtedly is the largest 
commercial bank of the country.
It is understood that the new PC design is the result of pressure 
from the World Bank which wants Islamabad to expedite the process 
of privatization of financial institutions in line with the spirit 
of promoting private sector's role in financial affairs.
According to the earlier programme, the commission was thinking of 
selling out HBL's all branches in Middle East along with some more 
foreign and local branches.
"But now the plan has been changed. The newest plan is to 
completely privatize the country's largest commercial bank. The 
spade work has been completed and its format will be presented to 
competent authorities soon for final approval," sources closely 
associated with the commission told Dawn on Sunday.
The sources anticipate that the much slowed down process of 
privatization will be expedited by the middle of next month.
They say documentation pertaining to the privatization of another 
mega enterprise - the Pakistan Telecommunication Corporation 
Limited - is also in the final stage. Legal and financial advisers, 
the sources say, have already given their approval to the PTCL's 
sell-off plan.
The PTCL privatization will follow selling out of the financial 
Likewise, they say, the federal government has completed paperwork 
on auctioning some of the top gas and oil ventures. "The PC may ask 
for bids any time from the second week of next month as the 
government wants to earn some money before the next annual budget 
and also to fulfil its agreements with the World Bank and the IMF 
about the privatization process before June 2000," the sources add.
The commission, they say, is hopeful that to the extent of HBL and 
other commercial banks as well as the PTCL, some stakes of these 
public sector ventures will be offered for sale through the three 
stock exchanges in the country. The federal government, the sources 
say, wants transparency in the process of auction.
Previously, auction of many enterprises like federal lodges, hotels 
and some other ventures had raised many eyebrows even among 
officials of the commission itself, besides attracting scathing 
criticism from general public who found some dubious action in the 
sell-off process.
"The World Bank also has taken note of the complaints and doubts 
expressed frequently about favouritism and infamous practices like 
forming cartel for buying expensive public sector enterprises 
cheaply," the sources quote senior PC officials as saying.
Before the restart of the privatization process, the PC chairman 
and senior officials of the finance department will hold meetings 
with presidents of all the three stock exchanges to take stock 
brokers into confidence about the auction process and quoting share 
values of the enterprises to be sold.

KSE computer network fails again to absorb workload

KARACHI, Jan 18: The trading on the stock market on Tuesday was 
again interrupted as its Automated Trading System collapsed for the 
second day in a row on Tuesday collapsed as its computer network 
failed to absorb the workload and went out order in the afternoon 

However, the KSE 100-share index showed violent either-way 
fluctuations before the system gave in under the avalanche of 
buying and selling offers around 3.15 p.m. in the wake of scare 
caused by the overnight bomb blast in city, which killed nine 

After opening five points lower it rose by 24 point but again fell 
by 20 points and finally ended lower by 1.24 points at 1,660.09 
amid a record volume of 421m shares, the second best figure in 
KSE's trading history.

'The system collapses after the volume figure crosses the 300 
million share mark and any figure above it is beyond its intake 
capacity', staff associated with the computer network claims.

The KSE board of directors met here on Tuesday and discussed the 
situation arising out of the network failures. Reports leaking out 
of the meeting indicate that decision has been taken to update the 
system after placing new softwar having the capacity of 0.1 million 
bargains daily, which in terms of volume will amount to half a 
million to 0.6m shares.

'The new system could be in place within the next three to four 
months and how to tackle the computer failures in between is not 
clear', stock analyst Faisal Abbas said.

Though offlate, the KSE appears to be the victim of the millennium 
bug, said a leading investors jokingly but doubted there could be 
some' mischief also on the part of some losers, notably the blank 
sellers sensing big losses after the price flare-up'.

On Monday it again gave in after the trading volume figure soared 
to an all-time high mark of 463 million shares taking the KSE 100-
share index along with it to the three-year peak level of 1,772.00, 
a gain of 110 points or 12% at one stage.

The successive failures of the KATS have raised more than one 
questions in investor mind but no one among the KSE highups thought 
it advisable to remove doubts associated with them.

'The big question being asked is why not the software system geared 
to the demands of the new millennium', investors ask adding 'its 
failure within a year reflects a terribly poor planning'.

'The system should have the capacity to cater to the needs of at 
least next 10 years when it was installed after a fair trial', some 
others said.

It was for the first time in the trading history of the KSE that it 
failed to provide closing rates of the listed shares on Monday and 
the local newspapers went without them, denying investors their 
right to know the value of their shares, floor brokers said.

PTCL, according to unofficial figures, again topped the list of 
most actives, off Rs27.95 on 170m shares, PSOP, which announced a 
final dividend of 60% making the total for the year ended June 30, 
to 90% with 30% interim already paid,up Rs2.00 on 100m shares, Hub-
Power, lower at Rs25.95 on 149m shares and ICI Pakistan easy at 
Rs12.00 on 22m shares.

DIVIDEND: Rafhan Best Foods cash 54% for the year ended Sept 30, 
'99, PSO final 60% plus 30% interim already paid.

Tax Ombudsman to take up major cases on priority
Ikram Hoti

ISLAMABAD, Jan 18: All the major cases of evasion, litigation, 
valuation and anomalies in taxation measures would be placed as the 
first segment of adjudication by the Tax Ombudsman Secretariat to 
be created in the first week of February.

Dawn was informed here on Tuesday by sources that a retired judge 
with a background in tax litigation, or a former chairman of 
Central Board of Revenue would be appointed as Federal Tax 
Ombudsman in grade 22. The secretary in-charge of the Ombudsman's 
Secretariat would be appointed in grade 21.

Most of the cases to be placed in the first batch with the 
Ombudsman's Secretariat, pertain to inquiries made by the Auditor 
General of Pakistan, the findings made by his tax reconciliation 
staff, and the appeals pending for adjudication.

Hundreds of appeals are pending adjudication as the Customs and the 
Income Tax Judicial Wings of the CBR have been scrapped as part of 
right-sizing of CBR initiated by the military government. These 
cases are at different stages of appeals/settlement.

"The CBR has estimated that at least Rs15 billion of tax amounts 
stuck up in these cases could be received in immediate deposits if 
these are given urgent and diligent attention", said a senior CBR 
official. He added that the cases pending with the Customs 
Settlement Commissions, also on the list of right-sizing, would 
too, be transferred to the Ombudsman's Secretariat.

The CBR officials said that they are in coordination with the 
Auditor General Pakistan (AGP) to prepare a list of all such cases 
for the immediate disposal which involve largest tax/duty amounts, 
and can be scrutinised by the Ombudsman's Secretariat for quick 
decision under special powers.

Apart from this list, the officials so far attached with the 
Customs and Income Tax Judicial Wings have been asked to prepare 
their lists of cases pertaining to appeals against late/non-payment 
of tax refunds/ duty rebate; serving of tax notices without first 
determining that the amounts asked to be deposited were not due; 
and mis-application of procedures causing losses of money demanded 
in taxes/duties by the income tax, customs and central excise 

State Bank approval sought: ADBP plans for commerical banking 

ISLAMABAD, Jan 18: The Agricultural Development Bank of Pakistan 
(ADBP) has sought permission from the State Bank to start 
commercial banking activities such as OD, TT, LC and issue of 
guarantees, official sources said here on Tuesday.

The proposal is part of a new plan to bring about structural and 
modernize the outdated and traditional system of the ADBP.

Official sources claimed here on Monday that the ADBP management 
has requested the SBP governor Ishrat Hussain to approve the plan 

ADBP officials said this programme is aimed at basic changes in the 
structure and working of the bank and if approved as planned, it 
will come into force from the year 2001 and will end in the year 

This plan was placed before the SBP Governor who visited the ADBP 
Islamabad last week to get first hand information about the working 
of the bank and suggestions to bring changes in the working of the 
bank on modern lines.

Sources said the SBP governor was also asked to approve 
reconstitution of Board of Directors of the ADBP which is pending 
since February 1998.

Similarly, the governor was asked that recovery and disbursement 
target of financial year 2000 be approved by the SBP and an amount 
of Rs31 billion and Rs35 billion respectively be approved against 
the MOU that disbursement should not be kept higher than recovery.

Bank said disbursement and recovery targets be fixed at Rs31 
billion each.

44 FIA employees sacked
Bureau Report 

ISLAMABAD, Jan 19: The government on Wednesday terminated the 
services of 44 contractual appointees of the Federal Investigation 
Agency (FIA) and repatriated another 20 officials, who were on 
deputation, to their respective parent departments.
Those terminated include a deputy director, 10 assistant directors, 
eight inspectors, eight sub-inspectors, 12 assistant sub-
inspectors, four constables and a clerk.
These dismissals of politically-motivated persons and removal of 
those on deputation from the agency, according to an interior 
ministry announcement, were made by the government to restore the 
neutrality and credibility of the FIA.
"The purpose of this much-needed step has been to restore the 
neutrality and credibility of the agency," said the ministry in its 
official announcement.
The ministry has communicated the names of these officials. 
According to reports, those terminated are: Maj (retd) Maqbool 
Shahid, deputy director; Adnan Yaqoob Tarar, assistant director, 
who according to a source, is related to the President Rafiq Tarar 
and Johar Sarwar, son of a PML MNA (suspended) Col (retd) Sarwar 
It is being said that these contractual employees and those 
deputation were given these jobs by the Nawaz Sharif government. 
The sources said the agency still has many such employees but their 
fate has not yet been decided because of unknown reasons.
The interior minister admitted that the FIA, which was an important 
organ of federal government for checking and curbing corruption, 
had earned the reputation of having become a tool in the hands of 
politicians for harassing their opponents.
"(A) number of personnel were inducted into it who had a political 
clout. In most cases, such personnel did not have the requisite 
qualification and experience to hold the posts and responsibilities 
they were entrusted (with) and were recruited without following the 
(proper) procedure," the interior ministry said.
The announcement said that a substantial number of officers from 
unrelated and 'irrelevant' departments were appointed on 
deputation. They too did not have the requisite experience. 

EPB chief assures exporters

KARACHI, Jan 20: Chairman Export Promotion Bureau (EPB) Tariq Ikram 
has assured the delegation of Pakistan Germany Business Council 
(PGBC) that the EPB will extend its full support to the exporters 
and would take measures for the promotion of exports.

The PGBC delegation led by its chairman Jamil A.Naz during a 
meeting on Tuesday also presented a copy of its study on the 
development of trade between Pakistan and European Union (EU) to 
the EPB chairman.

Besides, the PGBC submitted a memorandum to EPB chairman suggesting 
for joining the ATA Carnet system which will facilitate the 
temporary import of goods, such as samples, tools, exhibition goods 
etc into foreign countries.

Jamil A.Naz also requested the EPB to look into delays in refund of 
VAT to the exhibitors in German trade fairs which takes over six 
months and in some cases even longer.

During the discussion it was also pointed out by the PGBC 
delegation that the exporters of traditional goods would be 
affected as some of the quality tests, such as taxproof tests could 
not be carried out in Pakistan.

It was also pointed out that insufficient market information and 
difficulties to find suitable partners are few obstacles in 
expansion of trade relations with the European Union.

Another barrier in the promotion of exports is lack of confidence 
in the reliability of Pakistani exporters. The German Consul 
General Inemar Brentle who was also present on the occasion was of 
a view that an efficient quality control system of goods for export 
has to be introduced in Pakistan.

134 points gain in KSE index knocks off previous record
Our Staff Reporter

KARACHI, Jan 21: The KSE 100-share index on Friday soared by about 
8 per cent or 134 points, bettering its previous all-time single 
session record of 127 points established in June 1998 as the 
foreign-led buying 
in some of the mega issues ahead of their privatization further 
accentuated the current bull-run.

The market capitalization also showed sharp increase of about Rs30 
billion at Rs468 billion as compared to Rs439 billion a day earlier 
but it has still to go a long way to match its previous record of 
Rs610 billion and same is sure for the index, which still is far 
below its all-time record high of 2,662 points.

The single session trading volume did not match the buying frenzy 
and fell sharply from the peak level to 412 million shares, more 
than 80 per cent which was the credit of PTCL and Hub-Power.

The KSE 100-share index breached the psychological barrier of 1,800 
point, second during the week and settled well above it as 
investors appear to have gone mad amid fading hopes of return of 
bear market.

It was last quoted at 1,852.46 points as compared to 1,719.02 

" An increase of eight per cent in the index at the weekend session 
indicates a formidable section of leading operators are working on 
some positive official leaks", analysts said. It was trading around 
1,845.00 points in the extended session owing to a brief 
interruption in the system during the afternoon session.

"All the good news seems to have combined in one assuring investors 
that the run-up is genuine and ensure handsome capital gains", 
stock analyst Faisal Abbas said.

Massive foreign buying in PTCL and PSO led the market to explore 
new grounds as the buying euphoria was reminiscent of bull market 
of mid-90s when the index soared to an all-time high level of 
2,662.00 points, he adds.

There was no trace of the panic selling witnessed in the afternoon 
session on Thursday followed by rumours of hijacking of PIA 
aircraft as investors were back in rings and covered positions at 
the overnight fall.

"I don't rule out the possibility of the advent of strong foreign 
support ahead of privatization of some mega projects including in 
the banking and energy sectors", said a leading member of the KSE.

The withdrawal of meter tampering case from the Hub-Power 
management and positive signals from the highest level to resolve 
the protracted tariff issue seem to be the chief inspiring factors 
behind massive speculative support in its share, he added.

Together with the PTCL, both having a weightage of 44 per cent in 
the KSE 100-share index,took it to three-year peak level and many 
analysts now are eyeing a chart point of 2,000 for it.

This optimism was also shared by most of the local investors amid 
predictions that consistency in fiscal policies atleast for the 
next couple of years will continue to inspire strong support during 
the months to come.

The buying was general and not confined to any particular sector as 
liquid funds flowed in from all the quarters amid hopes that 
previous losses may be recouped in part.

Big gainers were led by Adamjee Insurance, IGI, Essa Cement, Lever 
Brothers, PSO, Telecard, BOC Pakistan, Fauji Fertiliser, Knoll, 
Packages rising by Rs5.00 to 27.00, while losers were led by 
Gatron, Al-Ghazi Tractors, Spencers, Security Paper and Sapphire 
Fabire off Rs1.60 to 8.00.

Trading volume was sharply below the overnight's all-time record of 
470 million shares at 412 million shares as gainers maintained a 
strong lead over the losers at 169 to 54 with 45 shares holding on 
to the last levels.

The most active list was topped by PTCL up 4.25 at Rs32.30 on 170 
million shares; followed by Hub-Power higher Rs1.90 at 28.65 on 102 
million shares; Sui Northern up Rs2.70 at Rs22.95 on 22 million 
shares; ICI Pakistan firm by 95 paisa at Rs13.50 on 22 million 
shares; and Fauji Fertiliser higher by Rs5.50 at Rs67.50 on 20 
million shares.

Other actively traded shares were led by PSO up Rs12.00 on 10 
million shares; FFC-Jordan Fertiliser steady by 25 paisa on 7 
million shares; KESC up 50 paisa on 5 million shares; Engro 
Chemical up Re1 on 5 million shares and Japan Power firm by 20 
paisa also on 5 million shares.

Defaulting companies: Shares of four companies came in for trading 
under the lead of Al-Qaim Textiles, which was quoted unchanged on 

Elsewhere prices ruled mixed. While Mian Textiles ended lower by 50 
paisa on 4,000 shares, Trubo Tec fell by 15 paisa on the same 

Back to the top
The great rehabilitation department
Ayaz Amir

WHEN Pakistanis talk politics they tend to dwell more on who 
deposed whom and a great deal less on who rehabilitated whom. In 
other words, the great champions of Pakistani history are 
remembered more for their work as undertakers rather than for the 
remarkable ability many of them have displayed to resurrect the 
ghosts of the past.

Bhutto was deposed by Zia and his generals. But before the great 
bar of public opinion he was also rehabilitated by them. By 1977 
people were fed up with Bhutto, his populist antics and his 
autocratic rule. Then came Zia's coup and Bhutto was transformed 
from a tyrant to a martyr.

The Pakistan People's Party (PPP) which he led also got a shot in 
the arm. With Bhutto as prime minister a once vibrant political 
organization had fallen on evil days. The very feudals whom the 
party had trounced in the 1970 elections entered the PPP and began 
dominating it leading to the demoralization of the rank and file 
which was the party's real strength. The coup changed this because 
pitted against martial law the PPP rediscovered a sense of purpose.

For the next 11 years all attempts to suppress or split it came to 
nothing. So much so that when Zia's plane fell from the skies to 
hasten his tryst with his Maker, it became almost inevitable that 
Bhutto's daughter, Benazir Bhutto, should be the country's next 
leader. How she, in partnership with her husband, went on to amass 
a personal fortune and squander her political legacy is of course 
another story.

Politics in Pakistan, however, is full of surprises. Benazir Bhutto 
was forced from the PM's house for the second time in 1996 (her 
first dismissal having taken place three years earlier). By that 
time her name and that of her husband, Asif Zardari, had become mud 
because corruption and the ruling couple had become synonymous in 
the public eye. While Benazir remains a discredited commodity, the 
strange thing is that her husband is earning a measure of grudging 
public sympathy for no other reason than that he seems to be 
suffering imprisonment with a brave face.

Whenever he makes a court appearance, as he has to do every now and 
then, there is a twirl to his moustache and a roguish smile on his 
face. Pakistanis love underdogs and brave villains and at the 
moment Zardari is amply proving to be both.

For this the nation has to thank Nawaz Sharif and his 
accountability czar, Saifur Rehman. They could have put Zardari 
behind bars on any single charge which, if nothing else, would have 
ensured that he stayed out of public attention. But afflicted with 
the legal mania from which all Pakistani governments suffer, they 
had to pile up case after case against Zardari with the result that 
even after being in prison for the last three years only one case 
against him has come to a conclusion while the others drag on, 
allowing him to make court appearances with no little swagger in 
his step.

Al Capone was convicted not for murder or anything comparable but 
tax evasion. That effectively put an end to his criminal career but 
to think that such sophistication might be duplicated here is 
clearly unrealistic. If Al Capone had been a Pakistani we would 
have made a hero and a successful politician out of him too.

As if to prove that old habits die hard, it is now Nawaz Sharif who 
is being rehabilitated. Nawaz Sharif says General Musharraf is out 
to eliminate him politically. He need have no fear on this count. 
Before the military finish with him he too will be furnished with 
all the trappings of a hero.

When the military moved in on October 12 people responded with joy 
because by then they had had enough of the 'heavy mandate'. If at 
that time Nawaz Sharif had been packed off to a desert island he 
would have received a great send-off and his party, the Muslim 
League, would have been the first to readjust itself to the new 

But trust our ability to resurrect the dead from their graves. 
Three months ago the very notion of Nawaz Sharif being looked upon 
kindly by a jaded and frustrated public would have been dismissed 
as laughable. Now as the military government flounders and gives 
every indication of not having any sense of direction, that idea 
seems less ridiculous.

To Sharif's credit he has proved himself a courageous man by not 
submitting tamely to military rule as someone else in his place 
might easily have done. This has given heart to his party, the 
Muslim League, and prevented it from splitting as it surely would 
have done if Sharif had shown any weakness in his dealings with the 

But more to Sharif's advantage is the military's confusion which is 
obscuring the memory of his many follies and excesses. Where people 
were expecting movement and dramatic results from the military 
government, they are being treated to a display of intellectual 
poverty and psychological paralysis. It is no wonder that those 
Muslim Leaguers hoping to take over the party have been reduced to 
silence because with the military government seemingly bereft of 
political ideas, they have been left with no other alternative.

It would seem that public support for the military takeover turned 
the new regime's head, making its leading figures think that they 
could do without the support or advice of the political class. This 
is proving to be a mistaken assumption because it is precisely the 
absence of a political input in its deliberations which is 
reinforcing the impression that the military regime has no sense of 
direction. As Sardar Mumtaz Ali Bhutto has forcefully argued in 
several articles in this newspaper, General Musharraf is doing 
himself no favour by shunning 'clean' politicians. An NGO point of 
view his government may have but a political perception of the 
country's problems it seems to be entirely without.

This attitude on the part of the generals may look strange but it 
is not new. For every profession, no matter how lowly or common, 
some training is thought to be essential. A cobbler will not make 
shoes or a tailor sew clothes unless he has had the right 

apprenticeship. No general or civilian leader untrained in 
economics would presume to style himself an economic expert. On 
economic matters therefore he will consult economic experts just as 
he will take legal advice from lawyers. But for the hardest of all 
professions - the art of government - all of us think we are 
eminently qualified.

The leading lights of this government also think that they are 
eminently qualified to run the nation's affairs. So far their only 
signal achievement is the gradual rehabilitation of Nawaz Sharif 
but their confidence in their abilities remains undaunted (one 
reason for this being that denied political feedback, the regime is 
retreating into a shell of its own at some remove from reality). 
But with the nation not sharing the same confidence, it is scarcely 
surprising if the same sense of frustration and helplessness that 
could be felt in the country just prior to the military takeover 
should be rising to the surface once again.

Where corruption is a way of life
Irfan Husain

GENERAL Musharraf has repeatedly vowed to stamp out corruption in 
Pakistan. Others before him have made the same pledge, and no doubt 
many will again.

While wishing them all good luck in their crusade, I would advise 
readers not to hold their breath while waiting for this 
transformation to take place. The fact is that there are many 
levels of corruption, and most of it has been institutionalized to 
such an extent that it has become as pervasive as the polluted air 
we breathe. Indeed, I doubt if the well-meaning Chief Executive, 
sheltered as he has been in the barracks all his adult life, has 
any idea of the extent and dimensions of the corruption that is 
rife in Pakistan. All I can say to him is "Welcome to real life!"

The more visible form of this practice in Third World countries is 
the kind carried out by high-profile politicians who, because they 
are in a hurry, demand an up-front cut in high-value projects that 
require their approval. The Bofors scandal in India, the Cotecna 
deal and the sugar export scam in Pakistan are all examples of this 
kind of corruption where the sitting prime ministers allegedly got 
commissions for approving multi-million dollar contracts.

This is the type of fiscal malfeasance that makes the headlines and 
wins us top ranking in the Transparency International corruption 
sweepstakes. A rung lower, but far more pervasive, is the share of 
the senior bureaucracy in the processing of proposals and grant of 
contracts. This is paid by contractors and suppliers of goods and 
services to ensure the rapid movement of files without any negative 
remarks. Usually, an amount is given in advance, with the balance 
being paid after the award of the contract.

The middle-level bureaucracy gets its share out of the 
implementation of these projects by supervising the work and 
releasing payments. In the field, the engineering and accounts 

staff ride a lucrative gravy train by virtue of their stranglehold 
on development and maintenance funds. A fixed proportion of their 
cut goes all the way to the top of their departments. Similarly, 
the police, revenue and irrigation department officials collect and 
distribute kickbacks on a regular basis. In all these cases, prize 
posts, i.e., those with the biggest potential earnings, are 
virtually auctioned. Thus, federal and provincial ministers get 
involved in the transfers and postings of the lowliest patwari and 

Excise, customs and income tax officials make hay in the cities. 
All custom duties and taxes are negotiable. Here, income tax 
practitioners and clearing agents play the middlemen and broker the 
deals between the businessman and the officials concerned. Billions 
of rupees that would otherwise have gone to the state exchequer are 
divided between the assessed and the assessors. This is one reason 
why both the business community and the Central Board of Revenue 
opposed the appointment of SGS and Cotecna to assess and collect 
customs duties on behalf of the government.

Utility services such as Pak Telecom, KESC and WAPDA are notorious 
for their inefficiency and corruption. But often those criticizing 
these companies in their air-conditioned homes contribute to this 
state of affairs. Half the owners of the biggest houses in Karachi 
collude with linesmen and meter readers and pay only a fraction of 
what they should be paying for electricity.

The multiplicity of federal and provincial inspectors from a 
bewildering array of departments adds to the opportunities for 
corruption. For instance, provincial governments send electrical 
inspectors to all industrial and commercial establishments once a 
year to inspect the wiring and issue a certificate saying that it 
is up to the required standard. If it isn't, electricity can be 
disconnected. Needless to say, these inspectors hardly ever enter 
the premises, and are paid their fixed stipend.

And this is only one inspector. Friends who own factories once 
counted 14 such agencies, including social security, old-age 
pension, excise and civil defence. "Say what?" I asked an 
industrialist friend. "How does civil defence come in, and how can 
these inspectors hit you for money?" He explained that these 
worthies come around at regular intervals and threaten to nominate 
key workers to civil defence courses unless they are paid off. And 
since under law no establishment can refuse this training for their 
workers, factory managers cut a deal.

But while businessmen complain about this corruption privately, 
they never register official complaints against specific 
inspectors. During my 30-year stint in government service, I spent 
three years as financial adviser to the old-age pension 
organization known as EOBI. When friends reported that our 
inspectors were shaking them down for money, I asked them to give 
me a written complaint, assuring them that I would see to it that 
action was taken. They refused, saying that once I was transferred, 
their lives would be made hell by vengeful colleagues of the 
punished inspector.Also, they maintained that it was worth their 
while to pay inspectors off rather than cough up the required 
amounts as the official levies were far higher than the bribes they 
paid. And here lies the problem. On the one hand, the absurdly low 
salaries paid to government officials practically forces them to 
seek illegal gratification; and on the other, businessmen are 
required to pay so many different levies to so many agencies that 
they have an incentive to pay them lower amounts under the table. 
It should be possible to devise a system that allows a businessman 
to pay his dues at one go, and this amount can then be divided 
among the various agencies concerned.

But the gravy train does not stop here. If you want a seat or berth 
on a train at the last minute, the porter will accommodate you for 
a consideration. An appropriate cash present will enable you to 
jump the queue of those waiting for a new electricity or gas 
connection. A traffic cop who stops you for an infringement will 
salute you if you slip him a red hundred-rupee note. Indeed, our 
high denomination bank-notes can get you off the hook for virtually 
any crime or indiscretion.

These are only a few instances of corruption in Pakistan, but I 
hope they will suffice to give General Musharraf some idea of the 
task he has chosen to take on. Indeed, I have not even mentioned 
the corruption in the armed forces, but then this would be outside 
the purview of the National Accountability Bureau.

Razzaq inspires Pakistan to victory over India
HOBART, Jan 21: A stunning all-round performance by Abdur Razzaq 
helped Pakistan virtually shut out India from the tri-series with a 
32-run victory here on Friday.

The 20-year-old smashed an unbeaten 70 off 52 balls and then 
grabbed 5-48 as India, replying to Pakistan's 262-7, were dismissed 
for 230 at the wind-swept Bellerive Oval.

Among Razzaq's victims was Indian captain Sachin Tendulkar, who was 
clean bowled after single-handedly carrying his team's hopes with a 
valiant 93.

Razzaq became only the fifth player after Viv Richards (West 
Indies), Krish Srikkanth (India), Mark Waugh (Australia) and Lance 
Klusener (South Africa) to achieve the double of a half-century and 
five wickets in a One-day International.

Pakistan's third win in five matches kept them on course for next 
month's finals against hosts Australia, who lead the table with 
four wins from five games.

India suffered their fourth successive defeat, and now face the 
uphill task of winning their remaining four games by huge margins 
to sneak through to the finals.

The big-hitting Razzaq, who scared the Australians at Sydney on 
Wednesday with five successive boundaries off pace spearhead Glenn 
McGrath, was again in smashing form.

He hit two sixes and four boundaries, adding a quickfire 67 for the 
sixth wicket with Yousuf Youhana after their team were hobbling at 
156-5 in the 37th over.

Razzaq's blitz, alongwith Youhana's composed 45, helped Pakistan 
plunder 91 runs in their final 10 overs.

The late charge was set up by useful contributions from Saeed Anwar 
(43) and Ijaz Ahmed (67) after Pakistan were given first strike on 
a cold and blustery morning.

The Indians had themselves to blame for the loss, being penalised 
two overs by match referee Cammie Smith for slow over rates in 
Pakistan's innings.

Tendulkar and Saurav Ganguly gave their side a confident opening 
start of 99, before Razzaq had left-hander Ganguly caught in the 
covers for 43.

A determined Tendulkar moved to within seven runs of his 25th one-
day century, when Razzaq shattered his off-stump with a superb 
inswinger in the 36th over.

Razzaq also removed Venkat Laxman, Anil Kumble and Javagal Srinath 
as the last eight Indian wickets tumbled for 74 runs.

Captain Wasim Akram, who reached the unprecedented 400-wicket mark 
on Wednesday, polished off the tail to finish with three for 34. 
Tendulkar's knock made him the second highest scorer in one-day 
cricket with 8,690 runs, behind his predecessor Mohammad Azharddin 
record tally of 9,111.

But the defeat stung the 26-year-old badly.

"Razzaq took the match away from us because our bowlers were 
clueless where to bowl to him," Tendulkar said.

"His knock really did us in and then our batting faltered at 
crucial stages to knock us out.

"I am terribly disappoined. I hope we can make up in the remaining 
games, although the task ahead is not easy."

Akram praised Razzaq, saying the youngster had the makings of a 
truly great player.

"He will score whether you send him at three or seven, and then he 
bowls his heart out," the Pakistani captain said. "Razzaq is one of 
the most dependable players in the team. "Tendulkar showed why he 
is rated as the best batsmen, but when Razzaq dismissed him, I knew 
the match was as good as won."

Pakistan take on Australia in the next match at Melbourne on 

Australia down Pakistan by six wickets
MELBOURNE, Jan 16: Steve Waugh played a captain's knock of 81 not 
out to guide Australia to a six-wicket victory over Pakistan in the 
tri-series here on Sunday.
In a match reduced to 41-overs-a-side due to rain, Australia 
recovered from 38-3 to overtake Pakistan's 176-9 with 13 deliveries 
to spare at the Melbourne Cricket Ground (MCG).
The win before 37,325 fans enabled the hosts avenge the 45-run 
defeat at Brisbane last week while recording their third successive 
win in the series.
Australia zoomed to the top of the league table with six points 
from four matches. Pakistan, who suffered their first defeat, were 
left with four points from three games.

India, the third team in the series, had yet to open their account 
after three consecutive defeats.
Steve Waugh, who scored 0, 23 and 4 in the previous games, made a 
timely return to form with his 38th half-century in 279 one-dayers.
He added 54 for the fourth wicket with Michael Bevan and 85 for the 
fifth with Damien Martyn, who remained unbeaten on 39. Australia, 
who take on Pakistan again in the next match in Sydney on 
Wednesday, have brought in all-rounder Ian Harvey in place of the 
injured Adam Dale.-AFP/Reuters

Wasim Akram first to claim 400 wickets
SYDNEY, Jan 19: Pakistani captain Wasim Akram became the first 
bowler to claim 400 one-day wickets, but could not prevent his team 
crashing to a 81-run defeat against Australia here on Wednesday.

Australia piled up 286 in 49.4 overs and then shot Pakistan out for 
205 to virtually assure a place in the tri-series finals with their 
fourth successive win.

Akram, the prolific left-arm seamer with 383 Test wickets under his 
belt, reached the 400 mark in one-day cricket in his 285th match.
The 32-year-old's feat was, however, overshadowed by a spirited 
batting display from both teams before a sell-out crowd of 40,000 
at the Sydney cricket ground.-AFP/Reuters

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