------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 29 April 2000 Issue : 06/18 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from 
Pakistan's largest English language newspaper, the daily DAWN. DWS 
offers news, analysis and features of particular interest to the 
Pakistani Community on the Internet.

Extracts, not exceeding 50 lines, can be used provided that this 
entire header is included at the beginning of each extract. 

We encourage comments & suggestions. We can be reached at: 

     e-mail        dws-owner@dawn.com
     WWW           http://dawn.com/
     fax           +92(21) 568-3188 & 568-3801 
     mail         DAWN Group of Newspapers 
                   Haroon House, Karachi 74200, Pakistan 

Please send all Editorials and Letters to the Editor at

(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 2000


CONTENTS ===================================================================
NATIONAL NEWS + Final decision on all issues today: Traders agree to pay duties + Musharraf urges ECO to unite: Better terms for South sought + Supreme Court judges' strength completed + Fresh move to replace Nawaz Sharif thwarted + Pakistan, India can't join 'official' Nuclear Club, says US + Pakistan to repay $55m to IMF + GDA seeks timeframe for election + Concessions on positive proposals, says Moin + Samjhota to continue running + Nawaz pleas to be heard on May 2 + Pakistan urges US to resolve Osama issue through talks + More steps to promote Human Rights suggested + Increase in tariff rates: FIR against Hubco not to be withdrawn --------------------------------- BUSINESS & ECONOMY + Classified loans: Banks, NBFIs to follow uniform rules + Japan reschedules debt + Misreporting of fiscal data: IMF response after 28th meeting + Banking Laws Review Commission constituted + Tax survey: Trade bodies to meet on 27th + IRSA satisfied with water distribution + Tea processing project revived + ADB provides Rs55m to NAC + WAPDA seeks Rs2.5 billion compensation from government + Central Board of Revenue may extend tax amnesty deadline + IMF conditions not known as yet: Ishrat + KSE on "deemed listed security" + Leading shares receive massive battering --------------------------------------- EDITORIALS & FEATURES + Who botched the transition to democracy? Ayaz Amir + Kargil: the morning after Irfan Husain ----------- SPORTS + Third Final: Injured Inzamam guides Pakistan to victory + Match-fixing: ICC asks PCB to submit report + Inzamam to have surgery on heel + International athletics meet: Pakistan to field 4 teams

Musharraf urges ECO to unite: Better terms for South sought

ISLAMABAD, April 27: The Chief Executive, Gen Pervez Musharraf, has 
called for an increased cooperation among the members of the 
Economic Cooperation Organization and called for quick and positive 
action to achieve economic prosperity in the region.

Inaugurating the third ECO Ministerial Meeting on Transport and 
Communications here on Thursday, the CE held out the assurance that 
the ECO states would not find Pakistan lacking in its resolve to 
realize the common objective of increasing trade and economic 
cooperation within the organization.

"It may be a good idea to have level playing fields but when the 
players are giants and dwarfs, it is biased against the South," he 
remarked and said: "The playing fields have to be uneven in favour 
of the South."

The ECO potential, he added, should be used for the promotion of 
cooperation among the members of the organization.

"Globalization, for all its benefits and possible pitfalls, has 
come to stay and the ECO states should also join hands to benefit 
from it." He urged the ECO states that they should regard it as an 
opportunity to improve the standard of living of their people.

The CE described the transport and communication as 'priority 
sector' especially relevant in a region where many countries are 

"It is important to realize that our achievements so far have not 
kept pace with our expressed resolve. It is thus necessary that we 
prioritize our objectives and set realistic targets for their 
timely achievements," he said.

Gen Musharraf appreciated Kazakhstan's Almaty Outline Plan which, 
he observed, envisaged specific routes for the ECO rail-road 
networks linking the member states with each other as well as with 
the other countries.

"A historic milestone on the road to cooperation in transport and 
communications is the Asghabat Declaration which provided policy 
guidelines to establish a comprehensive Transport and 
Communications infrastructure in the ECO region."

The conclusion of the ECO Transit Transport Framework Agreement, he 
said, was a special achievement for which all the member states 
must be given credit. He called for an early implementation of the 
deal which, he said, was in the interest of the whole region.

The annexes of the agreement are expected to be signed during the 
ongoing meeting after which the deal would come into effect.

Gen Musharraf called for a minimum documentation procedure in the 
movement of merchandise through rail, road and sea route and 
emphasized the need for the maximum use of the available 
infrastructure and transport network.

He said Pakistan fully realized the requirements of the land-locked 
states in the region and the responsibilities it shared with other 
states in developing transit facilities and access to the world for 
their produce.

"It is in this spirit, he said, Pakistan had pledged itself to the 
programmes and projects of the ECO.-APP

Supreme Court judges' strength completed

ISLAMABAD, April 25: President Mohammad Rafiq Tarar on Tuesday 
appointed five judges to the Supreme Court of Pakistan. With the 
appointment of these judges, the strength of the Supreme Court 
judges, i.e. 17, stands completed.

The newly-appointed judges include Justice Mian Mohammad Ajmal, 
Chief Justice, Peshawar High Court; Justice Deedar Hussain Shah, 
Chief Justice, High Court of Sindh; Justice Javed Iqbal, Chief 
Justice, High Court of Balochistan; Justice Hamid Ali Mirza, judge, 
High Court of Sindh and Justice Abdul Hameed Dogar, judge, High 
Court of Sindh.

These judges have been appointed to the SC from the date they 
respectively take upon themselves the execution of their offices as 
such judges.

Following are the names of the judges of the Supreme Court 
according to their seniority:

1. Justice Irshad Hassan Khan, Chief Justice of Pakistan, 2. 
Justice Mohammad Bashir Jehangiri, 3. Justice Sheikh Ijaz Nisar, 4. 
Justice Sheikh Riaz Ahmed, 5. Justice Ch. Mohammad Arif, 6. Justice 
Munir A. Sheikh, 7. Justice Abdul Rehman Khan 8. Justice Rashid 
Aziz Khan, 9. Justice Nazim Hussain Siddiqi, 10. Justice Iftikhar 
Mohammad Chaudhry, 11. Justice Qazi Mohammad Farooq, 12. Justice 
Rana Bhagwan Das, 13. Justice Mian Mohammad Ajmal, 14. Justice 

Deedar Hussain Shah, 15. Justice Javed Iqbal, 16. Justice Hamid Ali 
Mirza, 17. Justice Abdul Hameed Dogar.-APP

Fresh move to replace Nawaz Sharif thwarted

LAHORE, April 25: The issue of nominating a new parliamentary party 
leader in the (suspended) National Assembly and a new PML president 
was raised again at a meeting of some senior party leaders here on 
However, both the suggestions were shot down.

Suspended MNA Mian Munir had hosted a lunch for some PML leaders 
where participants held detailed discussions on the party matters. 
Central coordination committee convener Raja Zafarul Haq, senior 
vice-president Ejazul Haq, Chaudhry Shujaat Husain, vice-presidents 
Sheikh Rashid, Gen (retd) Majeed Malik, suspended MNAs Pervez 
Malik, Mian Azhar, Kamil Ali Agha, Sardar Kamil Omer and Mian 
Waheed were among the participants.

The unity of the party was the biggest challenge for the leadership 
after the ouster of the PML government on Oct 12 and it was a great 
achievement that the party so far stood intact, Raja Zafrul Haq 
told reporters at a briefing at the Muslim League House.

Replying to a question, he said the PML leaders had adopted a 
resolution on April 9 reposing confidence in the leadership of Mian 
Nawaz Sharif. The resolution had also empowered him (Raja) to 
continue to head the central coordination committee and the party 
matters were being run in the light of that resolution, the PML 
leader said.

As for the PML's talks with the GDA, Raja Zafarul Haq said at 
present no party was in power or in the government and thus it 
provided everyone the best opportunity to create a culture of 
tolerance. Contacts between political parties despite their 
divergent views on various issues were a positive development, the 
PML leader said.

Referring to various statements of Begum Kulsoom Nawaz, the PML 
leader said they were in line with the party policy.

He was critical of the district assemblies system given by the 
military leadership, saying it was the "best recipe to disintegrate 
the country."

He said political parties should exchange views on this issue as 
well as the proposal of reviving the joint electorate. In his 
opinion the government would have to review its plans in case all 
political parties opposed the new system. 

 He denied that the GDA had linked cooperation with the PML with 
the removal of Mr Sharif. He said talks between the GDA and the PML 
were at an initial stage. He also denied reports that his party had 
any contact with the military government.

Pakistan, India can't join 'official' Nuclear Club, says US

UNITED NATIONS, April 25: The United States categorically rejected 
on Monday any possibility of Pakistan and India joining the select 
group of recognised nuclear-weapon states.

In a speech to the NPT Review Conference, Secretary of State 
Madeleine Albright declared: "There is no provision in the Treaty 
for new nuclear- weapon states, nor will there be one. For, we will 
not break faith with all the states - from the former Soviet 
republics to South America to South Africa - who made good 
decisions to strengthen their own security and the cause of non-
proliferation by joining the NPT. We want the tide of history to 
keep running in the Treaty's directions - toward the elimination of 
nuclear weapons, not their spread."

Mrs Albright said the United States continued to seek universal 
adherence to the NPT - "in South Asia and beyond".

She described the Indian and Pakistani nuclear tests of May 1998 as 
a "serious challenge to the global non-proliferation regime", 
adding: "But the world's response to those tests revealed the 
strength and resiliency of the NPT and the global norm it has 

Mrs Albright said the NPT would remain at the "centre of our non-
proliferation and disarmament efforts". She identified three US 
policy objectives. One, how the treaty was working to prevent 
nuclear proliferation; two, advancement of nuclear disarmament; 
and, three, enhancement of cooperation in the peaceful uses of 
nuclear energy. She said the United States strongly supported the 
International Atomic Energy Agency's (IAEA) safeguards to deter and 
detect cheating, and urged all parties to adopt them.

On CTBT, the secretary of state said the appointment of the ex-
chairman of the US Joint Chiefs of Staff, Gen John Shalikashvili, 
by the president was an effort to ensure how best to respond to 
senators' concerns about the CTBT so "we can build support for its 
eventual ratification". She added that she was "convinced" that 
America would ratify the CTBT so that the nuclear arms race became 
a "relic of the 20th century, not a recurring nightmare of the 

Pakistan to repay $55m to IMF
Masood Haider

WASHINGTON, April 24: Pakistan will repay $55 million to the 
International Monetary Fund in order to resolve the issue of 
"misreporting" of fiscal data to the Fund by the previous 
governments, informed sources told Dawn. on Monday.

The sources say that "once the repayment is made, it would clear 
the decks" for IMF's negotiating mission to Pakistan which is 
planned for May.

The money owed to the Fund is a consequence of misreporting of 
figures which resulted in IMF releasing aid to Pakistan based on 
inflated figures. "It is not a penalty ," the sources stressed, "it 
is just an adjustment."

Sharif government's finance managers had reported to IMF and the 
World Bank that Pakistan's GDP (Gross Domestic Product) in the 
fiscal year 1998-1999 stood at 6 per cent when actually it was 4.5 
per cent.

"What saved us from wrath of the IMF and WB was the fact that we 
discovered the anomaly in figures and reported it promptly," 

Finance Minister Shaukat Aziz conceded during his recent visit to 
Washington when he met the IMF officials.

The resumption of IMF loan package for Pakistan hit a snag 
instantly when Pakistan's new finance team made the revelation in 

Besides, the sources say that IMF wants Pakistan to pursue tighter 
monetary policy to keep the inflation down and it wants a more 
concrete and viable tax collection system.

Finance Minister Aziz had already indicated in his meetings with 
Wall Street investors that the new government would institute a 
more liberal exchange policy.

IMF has said it likes what it has seen on paper of new governments 
economic plan but it has stressed for basic structural changes to 
implement them.

IMF and the World Bank also pushed the Pakistani delegation to 
resolve the Independent Power Producers issue quickly and amicably.

GDA seeks timeframe for election
Bureau Report

ISLAMABAD, April 23: The GDA on Sunday demanded that the government 
must immediately announce a timeframe for provincial and national 
assemblies elections.

The demand came at a meeting of the Grand Democratic Alliance, a 
group of 18 political parties, held at the residence of Malik 
Hakmeen Khan. The meeting believed that the announcement of 
elections would go a long way in restoring the country's image at 
the international level.

"We have been consistently demanding holding of general elections 
since October 12," Nawabzada Nasrullah Khan told a press briefing 

Reporters repeatedly asked him whether the GDA was planning a 
protest campaign to press their demand, but the veteran politician 
parried the question.

To a question, whether he held Muslim League responsible for the 
military takeover and if so, then how they were holding talks with 
that party to include it in the GDA? "No comments," was the sharp 
reply of the Nawabzada.

He revealed that a committee had been formed to hold negotiations 
with the PML and other political parties to grant them the GDA 

The GDA, he said, was of the view that the government should seek a 
moratorium on all foreign loans for 15 to 20 years, to salvage the 
country from recession.

He deplored that the IMF and World Bank had been dictating their 
terms to Pakistan, taking advantage of the country's week economic 

About the accountability process, he said it should be across the 
board, fair and just. He said civil and military bureaucrats should 
also be held accountable.

Concessions on positive proposals, says Moin

ISLAMABAD, April 26: Interior Minister Moinuddin Haider said on 
Wednesday there would be no extension in the April 30 deadline set 
for a crackdown on smuggled goods dealers. 

However, he added, the government was ready to give concessions if 
traders' representatives came up with concrete proposals.

Talking to newsmen here at a seminar, he said the government did 
not want to close down businesses or deprive people of their 
livelihood, but, he added, it was also the responsibility of 
traders to pay a little to the nation out of their earning.

Mr Haider said two hours would be sufficient if representative 
associations of traders from all the four provinces formulated 
solid proposals.

He said that a few days ago, he had listened to the traders for 
more than three hours in Islamabad with an open mind and open 
heart. He said it was not fair to issue threats and waste time in 
the name of negotiations.

" We will be constrained to take strict measures for the 
enforcement of law, "he told a reporter who had asked whether the 
government would use force, after April 30, to curb the business of 
smuggled goods.

Mr Haider said different agencies, including Customs, were keeping 
a constant vigil on the movement of smugglers. Certain warehouses, 
he said, were hiding smuggled goods and moving them from one place 
to another. 

 He said they were wasting money and time on such operations and 
added that, in fact, paying taxes was cheaper than hiding smuggled 

Samjhota to continue running
Sajid Iqbal

WAGAH, April 26: Pakistan and Indian railway teams which met here 
on Wednesday signed an agreement to resolve various issues 
endangering the future operation of the Samjhota Express.

According to the agreement, India agreed to provide coaches for 
running the train between Atari and Lahore. An Indian locomotive 
will bring these coaches from Atari to Wagah from where the rake 
will be attached to a Pakistan railway engine for the journey to 

The arrangement will be valid for a period of six months after 
which Pakistan will provide coaches for a similar length of time.

The Indian side also agreed to allow an overnight stay of their 
rake at Lahore. Under the new arrangement that will become 
effective from May 4, while the frequency will remain unchanged - 
twice a week - the up and down trains will now run on different 

According to the new timetable, Samjhota will leave Atari on Monday 
at 11am (PST) and reach Wagah at 11.30am. It will remain at Wagah 
station for five and a half hours for immigration and customs 
clearance. It will leave Wagah at 5pm and reach the Lahore railway 
station at 5.45pm. After an overnight stay at the Lahore station, 
it will leave for Wagah on Tuesday at 7.30am. The train will reach 
Wagah at 8am. It will stay at Wagah for three and a half hours for 
immigration and customs clearance and leave at 11.30, reaching 
Atari at 12noon.

This was the second meeting of the two teams during the last two 
weeks. Members of the teams had earlier met on April 14 to discuss 
various issues relating to the Samjhota Express. 

Then the meeting was held in the backdrop of Pakistan's threat to 
close down the train service from April 15, because New Delhi was 
not honouring the agreement governing rail transport. In the first 
meeting, both the sides had agreed to continue the service under an 
interim arrangement till May 1 and hold another round of talks on 
April 26 to discuss various proposals and reach a permanent 
agreement on the issue.

"Talks between the two sides remained successful in settling all 
urgent issues relating to the future operation of Samjhota 
Express", Pakistan Railways additional general manager (passenger 
business unit) and head of the Pakistani team Aurangzeb Khan told 
reporters after the meeting.

Nawaz pleas to be heard on May 2

KARACHI, April 27: The SHC on Thursday fixed the hearing of three 
different applications of Nawaz Sharif for May 2. Azizullah Sheikh, 
the counsel for Nawaz Sharif, moved three applications 
before the bench comprising Justice Abdul Hameed Dogar and Justice 
S.A. Rabbani. 

The applications sought air-conditioning facility for Nawaz Sharif 
and the other two requested for his appearance on hearing and his 
meetings with his friends. AG Sindh while waiving the issuance of a 
notice to him requested the court to fix the hearing of these 
applications along with those that had already been fixed for May 

Pakistan urges US to resolve Osama issue through talks

KARACHI, April 27: Pakistan has urged the United States to directly 
negotiate with the Taliban to resolve the issue of Saudi dissident 
Osama bin Laden living in Afghanistan.

Pakistan is not directly involved in the issue but as a 
neighbouring country was ready to facilitate talks between the US 
and Afghanistan to resolve the issue on the basis of justice and 
peace, advisor to the chief executive on national affairs and media 
development, Javed Jabbar said.

Talking to newsmen here on Thursday, he said Pakistan had found no 
evidence of Osama's involvement in the bombing of US embassies in 
Kenya and Tanzania in 1998. "We will see the evidence first in this 
regard. The US has had some contacts with Taliban and Pakistan also 
invited representatives of the Afghan government."

Mr Jabbar has said the United States has indicated to give Pakistan 
evidence on Osama's alleged involvement in the bombing issue.

Javed Jabbar said Pakistan did not visualize any immediate danger 
of war with India but was on guard. "At the moment I do not see any 
conflict with India, but we remain on guard as we have had very bad 
experiences in the past," he said.

He contended that since India is consistently violating UN 
resolutions on Kashmir, membership of Security Council to India 
"will be a bad blow for UN Charter." 

He pointed out that India has been blatantly violating UN 
resolutions on Kashmir which call for plebiscite in the Held Valley 
and giving Kashmiri people their right to self-determination.

To a question about supporting any other country's candidature for 
membership of UN Security Council, Javed Jabbar said Pakistan will 
first of all contemplate whether a permanent membership was a just 
concept. It will seek consensus on the issue with other countries 
before taking a decision.

He said Pakistan was not facing isolation as Chief Executive, Gen 
Parvez Musharraf visited 15 countries and met many world leaders 
who were briefed about steps being taken by the present government. 
He said within the first six months, the government had 
successfully embarked on its agenda of economic development, 
democratization, institutional reforms and diplomatic activism.-PPI

More steps to promote Human Rights suggested

ISLAMABAD, April 22: The two-day convention on human rights and 
human dignity concluded on Saturday with strong commitment by the 
government to take legal and administrative measures to promote 
human rights culture in Pakistan.

The concluding session adopted recommendations formulated by five 
working groups on women, children, minority, policy framework and 
awareness and education.

The session attended by Ministers Aziz A Munshi, Zobaida Jalal and 
Derick Cyprian besides convenor Attiya Inaytullah held thorough 
discussion on all reports presented by rapporteurs of working 

The delegates of Civil Society Organizations (CSOs) debated and 
gave suggestions to improve the recommendations further. Setting up 
of a national committee was also recommended by Convention for the 
formulation of an Action Plan on Human Rights.

The group on "Human Rights Policy for Pakistan," made the 
recommendation of forming a national committee, taking the 
suggestion of the chief executive for evolving a policy framework 
on human rights.

The group also endorsed the government initiative of setting up of 
a Commission of Human Rights, which should be independent and 
established through a statute.-APP

Increase in tariff rates: FIR against Hubco not to be withdrawn

LAHORE, April 25: The counsel for Wapda on Tuesday submitted before 
a Supreme Court full bench that his client had no intention of 
withdrawing the FIR registered about the allegedly fraudulent 
increase in tariff rates for purchase of electricity from Hubco.

The counsel said that without getting any additional benefit for 
the government of Pakistan, the power company was allowed to 
increase the tariff from 3.29 cents per KW to 4.7 cents for the 
purchase of 1,200 MW. This, he said, aptly illustrated the fraud 
committed on the nation. He said the national interest had been 

The counsel said that Wapda was ready for a settlement with Hubco 
on tariff rates on the basis of the original agreement between the 
two parties.

Counsel Umar Ata Bandyal said that the rate of purchase of 
electricity from private power company Hubco for his client were 
enhanced in connivance with the senior officials of the then 
Pakistan government. He said the case could be dropped against two 
foreigners who are among the 11 accused.

The then water and power secretary, Suleman Farooqi, and special 
adviser to the prime minister for power Shahid Hassan Khan are 
among the accused.

The court, comprising Justice Bashir Jehangiri, Justice Ijaz Nisar, 
Justice Abur Rehman Khan, Justice Sheikh Riaz Ahmad and Justice 
Munir A Sheikh, stressed that the only question before them was if 
there was an element of fraud involved in the case. The court said 
it would hold against taking the matter before an arbitration 
tribunal if the answer was in the positive. 

Final decision on all issues today: Traders agree to pay duties
Ansar Abbasi

ISLAMABAD, April 28: A breakthrough was achieved in the crucial 
talks between the government and the Bara traders here on Friday. 
The 11th hour deal appeared to be a three-point compromise formula 
under which the Bara traders would have to deposit 50 per cent of 
fixed tax/duties, at normal rates, on their existing stocks 
forthwith and the rest within an period of three months. The relief 
period, to enable the traders dispose of their existing stocks, is 
likely to be set at six months as proposed by the government during 
the four-hour talks.

In exchange, the government will put off the planned nationwide 
survey of the Bara markets and a simultaneous crackdown on 

The formula is yet to be endorsed by the anti-smuggling committee 
of the federal cabinet on Saturday.

The government side, led by the interior minister, Moinuddin 
Haider, listened to the grievances of the Bara traders, who were 
represented by the their leaders from the NWFP and Balochistan.

The minister told newsmen after the meeting that under the proposed 
formula, the Bara traders would be classified in different 
categorize, mainly small retailers, big retailers and wholesalers.

The small retailers (cabin-owners/vendors) would have to pay a sum 
of Rs10,000 as fixed tax and the big retailers (shop-owners) 
Rs15,000 per shutter.

The minister said that the traders' side wanted one-year time to 
dispose of the existing stocks but he had offered a six-month 

A decision on relief to the wholesalers, he said, would be taken 
later, probably on Saturday. The minister, however, indicated that 
the wholesaler would be taxed on percentage basis.

According to an estimate, the minister said, there were 500,000 
Bara shops in the country. Thus, he added, the government would 
collect Rs12 billion as one-time fixed tax at an average of 
Rs25,000 per shop.

The revenues would be utilized to encourage industry sector, he 

Regarding a formal announcement for the postponement of May 1 
crackdown, Mr Haider said it would be made only after the 
endorsement of the agreement by the anti-smuggling committee of the 
cabinet and the Chief Executive, Gen Musharraf.

Referring to the movement of smuggled goods over the last few days, 
the interior minister was he knew where the stocks had been moved 
to and concealed. He said that the government had held talks with 
the Bara traders with sincerity and expected the similar gestures 
from the other side. He reaffirmed the government's resolve to deal 
with smugglers and tax evaders sternly.

Sealing off the borders and other measures, he said, had curtailed 
smuggling by 80 per cent, he claimed.

Mr Haider said that the traders' demand to levy 15 to 20 per cent 
tax/duty was turned down because the implementation of such a 
formula would be a difficult process.

The next target of action, he disclosed, would be the producers of 
imitation goods. He said those indulged in imitating the original 
brands of medicines, cigarettes, drinks, shampoos etc would be 
dealt with severely.

The bonded warehouses, he said, were also being inspected and half 
of the total 48 had already been disbanded. "The number would be 
brought down to five," he added.

Classified loans: Banks, NBFIs to follow uniform rules
Mohiuddin Aazim

KARACHI, April 28: The State Bank has introduced a new set of rules 
for classification of all overdue loans of banks and non-bank 
financial institutions. Previously banks and NBFIs had different 
set of rules to follow.

The new rules have it that external auditors of banks as well as 
NBFIs will verify that their clients have complied with the 
requirements with regard to classification of overdue loans and 
their provisioning. These rules also have it that SBP inspection 
teams shall check during on-site inspection whether a bank or NBFI 
has made the required provisioning.

The term provisioning means keeping aside a certain amount of money 
to make up for anticipated loss on all classified loans.

The new rules require all banks and NBFIs to review-at least on 
quarterly basis-the collectibility of their loans or advances and 
keep documentary records of it. The SBP circular issued on this 
subject on Friday warns that shortfall in provisioning determined 
as a result of the quarterly assessment shall be provided for 
immediately in their books. It requires banks and NBFIs to start 
this process from the current quarter ending on June 30 2000. The 
circular says that besides submitting the party-wise annual 
statements regarding classified loans and advances banks and NBFIs 
shall submit a yearly statement giving a consolidated position 
within three months of the close of their accounting year. An 
annexure to the circular serves as a format on which the 
information has been sought.

The circular explains in detail how much provisioning a bank or 
NBFI is to make against different categories of overdue loans.

Senior bankers say SBP has kept intact the basic definition of all 
the four categories of overdue loans. So SBP will continue to treat 
those loans as overdue where mark-up/interest or principal is 
overdue by 90 days from the due date. It will also continue to 
treat those loans as Sub-Standard where this period is 180 days or 
above. The term Doubtful would continue to cover those loans where 
mark-up/interest or principal is over due by one year or more. In 
cases where this period is two years or more the loans would 
continue to be treated as Loss.

These definitions for four categories of classified loans are 
applicable on short-term loans i.e. loans obtained for up to one 
year. For long-term loans the definitions are different. But the 
provisioning required against each of the four categories of 
classified loans remains unchanged: (i) no provisioning in case of 
OAEM (ii) 20 per cent in case of sub-standard loans (iii) 50% on 
doubtful loans and (iv) 100% on loss-loans.

So what is new in the circular? Something very important. The 
circular requires banks and NBFIs to ensure a number of things for 
self-regulation on overdue loans. It also warns them of the 
measures SBP can take from time to time to ensure that they are 
doing what they ought to do to contain the volume of such loans.

The circular says that in addition to the above time-based 
criteria, subjective evaluation of performing and non-performing 
credit portfolio shall be made for risk assessment. It says if 
considered necessary the category of classification determined on 
the basis of time-based criteria shall be further downgraded.

The circular says rescheduling/restructuring of non-performing 
loans shall not change the status of classification unless the 
terms and conditions of rescheduling/restructuring are fully met 
for at least one year.

The circular requires banks and NBFIs to follow a uniform criteria 
for determining the realizable value of assets mortgaged or pledged 
with them. It says valuation shall be carried out by an independent 
professional valuer listed on the panel of Pakistan Banks 
Association. The circular says valuation shall be done at least 
once in three years.

Japan reschedules debt

ISLAMABAD, April 26: Japan, one of the Paris Club members, has 
agreed to reschedule and consolidate Pakistan's $822 million (86.3 
billion yen) loan till July 1, 2010.

In this regard, three agreements were signed on Wednesday by 
Saddaki Numata, ambassador of Japan to Pakistan; and Nawaid Ahsan, 
additional secretary in charge of Economic Affairs Division, on 
behalf of their governments.

An official announcement said that, in pursuance of the agreed 
minute of Paris Club, signed in January 1999, negotiations were 
held between the governments of Pakistan and Japan on the 
rescheduling and consolidation of debt owned by the former to the 

Under the agreements, debt service of yen 86.3 billion ($822 
million) due during the period from August 1, 1998 to December 
31,2000, on loans contracted up to September 30,1997, have been 
rescheduled and consolidated.

According to the terms and conditions agreed, OCEF (Overseas 
Economic Cooperation Fund) yen loans ( 67 billion yen) will be 
repaid in 20 equal semi- annual installments, commencing from 
July,1 2010, at the interest rate of 1.8 per cent per annum.

Similarly, JEXIM (Japan Export Import Bank) loan ( 5.6 billion yen) 
will be repaid in 20 equal semi-annual installments commencing from 
July 1, 2010, at the interest rate of 2.8 per cent. Likewise, 
JEXIM's untied loan ( 9.3 billion yen) will be repaid in 30 semi-
annual installments, commencing from July 1, 2010, at the interest 
rate of 4.9 per cent per annum.

While JEXIM guarantees (1.7 billion yen) will be repaid in 30 semi-
annual installments, commencing from July, 1 2010, at the interest 
rate of 4.4 per cent per annum.

However, it has been clarified that the Japan Bank for 
International Cooperation (JBIC) was established in October 1999 as 
a result of merger of the Overseas Economic Cooperation Fund and 
the Japan Export Import Bank.

Misreporting of fiscal data: IMF response after 28th meeting
Haris Anwar

KARACHI, April 25: The International Monetary Fund (IMF) will give 
its formal response to Pakistan's misreporting of fiscal data after 
its board meeting on April 28th.

Officials, who participated in the recent discussions with the 
fund, said Pakistan had voluntarily offered repayment of about $55 
million to the fund as a gesture of good faith.

"It is an offer from our part, but not from the fund, which still 
has to come out with its own assessment of things," an official 
source said, adding that IMF's formal reaction was expected earlier 
next month.

Sources also said the amount to be repaid by Pakistan was symbolic 
and not exactly what it got released by under reporting the budget 
deficit figures during fiscal 1997-98 and 1998-99.

But some independent circles are of the view that this strategy has 
been adopted after anticipating an imminent penalty by the fund.

"What I understand is that this has been done to avoid a more 
stringent reaction by the fund," a source said. If the IMF board 
accepts the offer then Pakistan will have to surrender an equal 
amount of rupee in the special account maintained at the central 

An official team led by the finance minister Shaukat Aziz, has just 
returned from Washington where they held discussions with the IMF 
to resume multilateral lending programme, suspended since the 
middle of last year.

Pakistan is expecting an IMF team next month for further talks on a 
crucial balance of payment support.

Sources said the situation arising out of misreporting of fiscal 
data was equally embarrassing for the IMF itself because this also 
showed a failure of its own reporting system.

IMF maintains its full-fledge office in Pakistan. Its regular and 
special missions keep visiting Pakistan before and after the 
announcement of budgets to have their own assessment of the 
economic data.

"They do their own cost checking where as the government provides 
all kinds of data, but this shows that there is also a failure on 
their part," a source observed.

A government official said this month that Pakistan would review 
all budget data for the last 10 years to reconcile all the figures, 
particularly related to the budget deficit.

According to knowledgeable sources, the auditing of the 
government's accounts has not been done for a long time by the 
office of Accountant-General of Pakistan Revenue (AGPR), which 
actually caused a mis-reporting of the budget borrowing from the 
state-run National Saving Schemes. 

Banking Laws Review Commission constituted

ISLAMABAD, April 25: The Federal government here on Tuesday 
constituted Banking Laws Review Commission for the evaluation of 
the existing banking laws. The BLRC will be headed by Justice (r) 
Haider Ali Prizada.

According to the terms of reference, the commission has been 
assigned to carry out survey of the legal problems of banking and 
financial institutions and legislative needs of the banking sector.

According to a government announcement, the commission will review 
the present legislation regarding the State Bank, commercial banks 
and financial institutions with a view to identify implementation 
and enforcement problems. The commission will also study the 
prudential regulations and regulatory set-up for supervision of 
banks and financial institutions.

The announcement further said that the commission will also propose 
amendments in the existing legislation including drafting of new 
laws for the effective regulation of banks and financial 
institutions. The commission will also make proposals for 
strengthening of prudential regulations through amendments.

Tax survey: Trade bodies to meet on 27th

KARACHI, April 24: FPCCI President Fazal-ur-Rehman Dittu has called 
a meeting of trade bodies on Thursday at Federation House, to 
discuss the prevailing economic situation in general and the 
problems pertaining to sales tax and the proposed raids on business premises 
and the survey by CBR.

Expressing his concern over the growing tension and restlessness 
within the business community, Dittu told Dawn that this move would 
have an adverse impact on the national economy which was already in 
bad shape.

President FPCCI said that economy must move in harmony and the 
country at this juncture cannot afford to go into conflicts and 

 He suggested to the government to remain extra cautious and keep 
in mind socio-economic conditions of the society before initiating 
any operation.

"I fear this move on part of government will only encourage those 
forces who believe in agitational politics and the country at this 
stage cannot afford such ventures which may further weaken its 
economy," he asserted.

President FPCCI said that he has already apprised the finance 
minister and the chairman CBR about the alarm and concern prevalent 
among the business community over the reported raids on business 
premises in a countrywide income tax, sales tax, property and 
assets surveys.

Referring to a campaign against smuggled goods and the planned 
raids on Bara Markets, as well as retail outlets in major cities 
for such goods, Dittu said that instead the government should check 
the source from where these goods was making way into every nook 
and corner of the country.

IRSA satisfied with water distribution

KARACHI, April 24: Brushing aside the Sindh growers' concern over 
the shortage of irrigation water in Sindh, the Indus River System 
Authority (IRSA) has decided to restrict the supply from Taunsa 
Barrage to 2,000 cusecs till Friday.

The decision was taken at a meeting of the Authority, presided over 
by its chairman, Muhammad Shahzad Arbab, who is the irrigation 
secretary, NWFP. The meeting was held at the Sindh Secretariat here 
on Monday.

Nothing but a brief handout came out from the deliberations and 
nobody presented himself to brief the newsmen about the decision on 
the burning issue.

Participants of the meeting, according to the handout, expressed 
their satisfaction over the arrangements for Indus water 
distribution under the system after reviewing the situation.

The meeting was held amid demand, put forward by the 
representatives of three provinces, for the removal of Khwaja Ali 
Abbas, the chief engineer (operations), IRSA.

Irrigation secretaries of the federal government, Sindh and Punjab 
were among those attended the deliberations while the chief 
engineer, irrigation, Balochistan, represented his province.

The meeting was informed that Wapda would continue to release 3,000 
cusecs from down stream Tarbela up to end of this month. The 
participants decided to monitor the water discharge at barrages 
jointly to ensure regular and adequate supply.

Tea processing project revived

ISLAMABAD, April 26: The federal government has decided to revive 
the dormant black tea processing plant project at Mansehra and has 
approved release of Rs32 million for its execution.

The ministry of food, agriculture and livestock will be the 
executing agency of this project. A foreign exchange component of 
Rs10 million has also been earmarked for the project.

Official sources told Dawn that the decision to set up black tea 
instead of green tea project has been taken due to the fact there 
is a great demand of black tea. They said the plant is supposed to 
have processing capacity of 500-1000 kg per day.

Sources said the main objective of the project is to work for self 
reliance and reduce the imports to possible extent.

They said the tea is a commodity the imports of which have been 
increasing every year and the country has reached at the top of tea 
importers' list.

Officials said now the tea leaves are to be processed into black 
tea for which the proposed plant is to be installed and operated to 
pave the way for local tea production which will also improve the 
social status of poor population of the area.

The project will also encourage tea plantation by growers through 
buy-back agreement. 

Bureau Report from Peshawar: Tea cultivated and processed at 
Shinkiari, Hazara division of NWFP, would be marketed in Pakistan 
by the year 2002, provincial minister for industries, labour and 
manpower Owais Ghani said here on Wednesday.

Under a tea cultivation project funded by the Bank of Khyber and 
being executed by a multi-national company some 1500 acres of land 
is being brought under tea plantation in the Shinkiari area of 
Hazara division.

First of the tea processing unit would be set up in Shinkiari by 
2001 following which locally grown and processed tea (black) would 
be marketed in Pakistan in 2002.

A total of 150,000 acres of land have been identified for tea 
cultivation in different parts of the Frontier province including 
Dir, Hangu, lower Swat and Bajaur & Parachinar in the Federally 
Administered Tribal Areas.

ADB provides Rs55m to NAC

 KARACHI, April26: The Asian Development Bank (ADB) has provided a 
loan of Rs 55 million to the government for technical assistance in 
order to make National Accreditation Council (NAC) viable and 

This was stated by Joint Technological Advisor, Ministry of Science 
and Technology (MOST), Abdul Rasheed while talking to newsmen at a 
seminar on "awareness of ISO-9000 certification" at the Karachi 
Chamber of Commerce and Industry (KCCI).

The Council has been established but it has not become functional 
due to certain problems which are being solved and it is likely to 
be functional within a year, he added.

Efforts are underway to make the Council recognized by the 
International Accreditation Body and a local certification body 
will be set up so that it could disburse ISO-9000 certificates for 
the prospective applicants, he said.

He said that currently 1,100 firms have acquired the ISO-9000 
certificates and majority of them are export-oriented units.

Earlier, Dr Nabil Lutfi, Assistant Technological Advisor, MOST said 
the government has provided Rs 36.19 million as a grant to 198 
firms who have acquired ISO-9000 certificates out of 462 firms 
approved for the grant.

WAPDA seeks Rs2.5 billion compensation from government 

ISLAMABAD, April 26: The WAPDA, placed on the top of the Sales Tax 
defaulters' list, has asked for Rs2.5 billion compensation for its 
"losses" from the ministry of finance to pay Rs1.253 billion sales 

The unpaid GST amount was due since March 15 and the payment has 
been demanded by the WAPDA against the amount of tax the WAPDA had 
to pay from its electricity surcharge deposits under the GST 
formula for the power sector.

However, on repeated reminders from the Central Board of Revenue, 
the WAPDA has been defiant and has now asked the ministry to first 
compensate for its "losses" incurred due to its liability under the 
GST formula not to charge the tax from the 40 per cent domestic and 
commercial consumers not using electricity above 500 units a month.

The WAPDA had to pay Rs2.53 billion in the GST by March 15, and 
also file a GST return with the CBR on this count as a registered 
assessee. It did pay Rs1 billion but did not file its GST return 
for March 2000 (due in April 2000) and is asking the MoF to first 
settle the issue of over-priced electricity generation inputs.

The MoF had been approached by the CBR in the first week of April, 
to come to the help of the former for ensuring expeditious release 
of tax money from the Wapda. Its plea was based on the CBR-WAPDA 
agreement for payment of the GST by not passing on the burden to 
the domestic and small commercial consumers. The MoF had been 
informed that the WAPDA had become the largest single GST evader.

The CBR sources revealed that though there have been long sessions 
of negotiations between the three sides, the WAPDA has not been 
committing to clearing its dues at any near future date. The 
problem has left the CBR with no option but to take the matter to 
the higher authorities of the government shortly, said the sources.

Central Board of Revenue may extend tax amnesty deadline
Ikram Hoti

ISLAMABAD, April 27: Central Board of Revenue is expected to extend 
on Friday the last date for filing declarations under the Tax 
Amnesty Scheme 2000 from April 30 to June 15, 2000.

CBR sources told Dawn here Thursday that a decision is believed to 
have been taken at a meeting of senior board officials which also 
considered changing the scheme to facilitate the declarants 
intending to regularize their assets by paying 10% income tax.

Sources said the intending declarants may now be given the 
following concessions: The provision enabling tax authorities to 
cancel an incorrect declaration up to June 30, 2005, may be 
withdrawn; the assets declared under the Tax Amnesty Scheme may be 
exempt from Wealth Tax for all subsequent years, without any time 

Originally, in the TAS 2000, it was envisaged that the assets 
declared under the scheme would be open to probe for source-finding 
on the basis of mis-declaration up to June 30, 2000.

Similarly, the original TAS announced on March 1, 2000, did not 
offer any exemption of Wealth Tax on the assets declared under the 
scheme. This also appeared as double taxation measure to most 
intending declarants and hence a poor response to the scheme, which 
has so far attracted deposits of less than Rs 50 million.

The government is launching a comprehensive survey of commercial 
and residential areas in major cities for expanding the tax net, 
and to unearth the understated incomes and wealth.

Those persons who posses undeclared assets and do not declare them 
in the extended TAS period, would come under scrutiny during the 
GST/Income Tax survey to be launched from May 1, 2000. Meanwhile, 
to facilitate the intending declarants, the commencement of this 
survey is also likely to be postponed by June 15, 2000, say 

IMF conditions not known as yet: Ishrat

KARACHI, April 27: State Bank Governor Dr. Ishrat Husain said on 
Thursday it is premature to assume what conditions IMF would impose 
on Pakistan for future funding.

Talking to newsmen after inaugurating the Management Institute of 
PICIC he said he would not rule out the possibility of IMF pressing 
for imposition of general sales tax on agricultural inputs from 
next fiscal year. "I cannot rule them out," he said when asked to 
comment on the apprehensions that IMF might press for imposing GST 
on agricultural inputs including fertilizer.

Former Finance Minister and economist Dr. Hafiz Pasha told a 
seminar on Tuesday he feared that this time around IMF might demand 
imposition of GST on agricultural inputs. He said IMF had made this 
demand also when he was the finance minister claiming that he had 
declined to accept it.

The governor said Pakistan had informed IMF negotiating team in 
Washington last week what it intended to do on the economic front. 
He said an IMF mission would come next month carrying a new agenda 
of reforms the contents of which are not known. He told a 
questioner that next IMF funding would be under PRGF-Poverty 
Reduction and Growth Facility-and it would not be a revival of the 
stalled Enhanced Structural Adjustment Facility/Extend Fund 

Sources privy to IMF-Pakistan negotiations say the IMF board of 
executive directors that has a final say is this matter would 
hopefully allow conversion of stalled ESAF/EFF into PRGF.

The SBP chief said the IMF board of executive directors in its 
meeting on Friday would finalize the issue of figures fudging by 

"We have told them that it was not a deliberate attempt by the 
previous government. It happened because our accounting system is 
orthodox." Dr. Husain said the $55 million that Pakistan has been 
asked initially to pay in connection of figures fudging was not a 
penalty. He said the payment would simply mean early repayment of 
$55 million worth of a transche that Pakistan received previously 
under ESAF. When asked whether Pakistan had a fall-back strategy to 
follow in case IMF declines to release funds he said smilingly, "We 
have somehow survived without the IMF funding for one year."

The SBP chief would not reveal the specifics of any fall-back 
strategy and made a general remark that if exports continued to 
rise the country would be better off.

KSE on "deemed listed security"
Dilawar Hussain

KARACHI, April 24: As the issue of "deemed listed security" assumes 
a point of interesting debate among brokers and investors in 
equities, the Islamabad Stock Exchange (ISE) in an announcement 
dated April 22 said, 
adding trading in shares of Hub Power Company would begin from 
April 24.

The trading in the security takes place under the ISE's 
"Regulations for trade and Settlement of Deemed Listed Securities", 
which the exchange said had been approved by the SECP vide its 
order of April 21. The first clearing/settlement date for the 
transactions effected in the Hubco scrip would be May 3, the ISE 
notification said.

Meanwhile, in a press statement on Monday, the Karachi Stock 
Exchange said that it was not opposed to the listing of Hubco on 
other exchanges. "The fact of the matter is that the KSE would be 
more than pleased that the Hubco shares are listed on the other 
stock exchanges since this would provide safety and security to a 
large number of brokerage houses of the KSE involved in arbitrage 
business", the KSE said, and added:"Unfortunately, the route 
adopted for the purpose of listing of an unlisted security on the 
stock exchanges, especially when there is no such concept of Deemed 
Listed Securities under the law, could not only encourage companies 
to seek listing only on one stock exchange and have trading done on 
other exchanges under the said policy now adopted. This would 
adversely affect future listings particularly at the LSE and ISE".

Earlier reports in the press had suggested that the commissioner 
(Securities) SECP had granted permission to the LSE and ISE for 
trade and settlement in share of Hubco as "deemed listed security", 
since it fulfilled the two major criteria: Trading volume of its 
shares at the stock exchange where it is listed (KSE), account for 

more than 10 per cent of the total turnover for a continuous period 
of two calendar months; and the company has more than Rs200 million 
in paid-up capital. In order to be able to trade in such unlisted 
securities, the LSE had framed "Trade and Settlement of Unlisted 
Companies Regulations" and the ISE "Regulations for Trade and 
Settlement of Deemed Listed Securities". These were said to have 
been approved by the SECP.

The KSE stated in its press statement on Monday that it had already 
communicated to the SECP its view that the Trade and Settlement of 
Unlisted Companies Regulations of the LSE and the Regulations for 
Trade and Settlement of Deemed Listed securities of the ISE were 
"contrary to the provisions of Section 8 of the Securities & 
Exchange Ordinance, 1969".

The KSE said that it feels that any arrangement of allowing trading 
outside the stock exchange where the company is listed in 
contravention of law, would carry a risk of "very serious 
consequences for the capital market of the country". The exchange 
went on to observe that "this route may also undermine the 
introduction of National Clearing & Settlement System (NCSS) in the 
country as the local and foreign institutional investors may 
hesitate to join the NCSS under any arrangement of trading and 
settlement which has "uncertain legal status".

Leading shares receive massive battering

KARACHI, April 28: Leading shares on Friday received massive 
battering followed by near-panic selling triggered by fears of law 
and order situation after the police raids in Quetta 
to nab criminals and reports of killings. The KSE index was off 
74.14 points or 3.7 per cent at 1,901.08.

Heavy unloading by some of the leading dealers and brokerage 
houses, notably Punjab-based ones amid rumours that, "badla 
problems could push the market further down on renewed heavy 
selling was said to be contributory bearish factor", brokers said.

"But I am not bearish", stock analyst Faisal Abbas says. "The index 
could fall another 20 to 25 points to pave the way for a big 

Stock analysts at the KASB & Co hold an identical view claiming the 
sell-off was more technical rather real.

All the sectors came in for heavy selling with blue chips among 
them finishing with clipped gains.

After breaching the psychological barrier of 1,900 points at one 
stage, the KSE 100-share index finally ended around 1,901.08, off 
74.08 points or 4.5 per cent as leading base shares came in for 
strong selling.

Fears of law and order situation followed by crackdown on bara 
markets from May 1, to eliminate high incidence of smuggling was 
another supporting negative factor, which kept investors away from 
the market.

According to market sources goods worth Rs140 billion ($2.5 
billion) are being smuggled into the country through various 
routes, which has totally ruined many viable corporate entities.

"The government seems to be determined to take the drive to its 
logical end as the elimination of smuggling could give the needed 
boost to both economy and the industrial sector," said a stock 

He said, in the developing external scenario, a formidable section 
of leading operators including some foreign funds played cautiously 
as "it is of no use to take undue financial risks".

Even the leading cement shares, which have given new direction to 
stock trading during the last couple of sessions attracted a good 
of profit-selling, although only extreme gains were clipped, he 

Floor brokers said a big turnaround awaits the market as news from 
the corporate sector are not that bad and once the current 
psychological factors are removed from the political scene, the 
market will respond to its technical demands.

"There are some basic changes in the market fundamentals and no one 
should entertain bearish ideas before the national budget due by 
the end of the next month", they added.

Minus signs dominated the list, major losers being blue chips such 
as Bank of Punjab, EFU General, Dewan Salman, Pakistan Oilfields, 
Shell Pakistan, PSO, Engro Chemical and Knoll Pharma, falling by 
Rs4.00 to 12.25, largest decline being in Knoll.

Adamjee Insurance, MCB, Ellcot Spinning, Millat Tractors, Fauji 
Fertiliser, Glaxo-Wellcome and Telecard were other among the 
prominent losers, which suffered decline ranging from Rs 2.60 to 

However, the market was not without some special feature in terms 
of big gains. Mehmood Textiles and Fateh Textiles, for instance, 
came in for strong support and rose by Rs16.00 to 125.00 owing to 
the shortage of floating stock.

Back to the top
Who botched the transition to democracy?
Ayaz Amir

WHEN General Zia's aircraft fell out of the skies in August 1988 a 
stark choice lay before the nation: it could regress into military 
dictatorship (an option supported by powerful voices in the upper 
councils of the then government) or it could move towards 

Mercifully, General Aslam Beg, the army chief after Zia's death, 
and Ishaq Khan, the dour chairman of the Senate who was quickly 
made president at a meeting in GHQ, over the vigorous opposition of 
the late General Fazle Haq who was all for martial law, decided to 
abide by the Constitution. In November, elections were held and 
after a delay of a few weeks during which Benazir Bhutto had to put 
her thumb to several articles of compromise, she became prime 

History, it seemed, had come full circle. The army had deposed 
Zulfikar Ali Bhutto and later sent him to the gallows. Now eleven 
and a half years later Bhutto's party, the PPP, was returning to 
power. Nothing like this had happened in Pakistan before. 

Excitement filled the air and the future seemed full of hope.

As it turned out, that optimism was premature. Democracy soon 
degenerated into a battlefield with intrigue, corruption and the 
buying of loyalty becoming the mainstays of the political process. 
Generals and mandarins, who had not taken kindly to the revival of 
democracy, went about with looks which asked 'didn't we tell you 

It is a measure of these wasted years that the country is back to 
first principles with military theoreticians once again asking 
their favourite question: what kind of democracy suits Pakistan 
best? Like a retarded student unable to go beyond the first few 
steps of algebra, Pakistan too seems stuck on this point. I wish, 
though, that General Naqvi, who gives the impression as if he has 
discovered the concept of local democracy, would study the 
newspaper files of the early years of the Ayub era. Provided he 
brought an open mind to the task, he would be struck by the uncanny 
resemblance between the political theories then in circulation and 
the ones being breathlessly spoken of today.

Who is to blame for the turmoil of the last 12 years and the forced 
tutorials, at the hands of military teachers, that the nation is 
having to put up with once again? Who stabbed democracy in the 

Most people's favourite villains are of course Benazir Bhutto and 
Nawaz Sharif. It is true both these champions of representative 
government were corrupt and incompetent, a combination bad enough 
anytime but disastrous when the country was trying to move from one 
era to another. Even so, the excessive demonization of Benazir and 
Sharif carries the risk of obscuring the role of other characters 
who were no less assiduous, and perhaps more deadly, in undermining 

The transfer of power which Beg and Ishaq oversaw allowed Benazir 
the privilege of sipping from a poisoned chalice. She was prime 
minister in Islamabad but her writ did not run in Punjab. Beg and 
Ishaq encouraged the warlordism of Nawaz Sharif in Lahore and the 
obduracy of Altaf Hussain in Karachi. National security, at whose 
sacred altar the greatest sins have been committed in Pakistan, was 
largely outside her purview. The intelligence agencies intrigued 
actively against her.

The odds were stacked against Benazir but it is also true that she 
was her own greatest enemy. Arrogant and prickly, she rubbed Ishaq 
the wrong way. She tried reviving a cult round her father when she 
should have known that the army would not like it. But these quirks 
of temperament would have mattered little if she had proved 
competent in office or if she and her husband were not tainted by 
astonishing charges of corruption. In the end it was more her 
performance and less the machinations of Beg and Ishaq which 
brought her a bad name.

And yet, this being the crux of the matter, there was no compelling 
reason to force her from office as Ishaq with Beg's full backing 
did in August 1990. A charge-sheet was of course drawn up against 
her which was later on approved by the Supreme Court when the 
matter came up before it. But in hindsight it is clear that Beg and 

Ishaq were not actuated by any high-minded motives. Like other 
guardians of the national flame before them, they were simply 
playing politics and eroding the frontiers of representative 
government. Benazir gave enough excuses to be tarred with a black 
brush. But even if she had been like the driven snow, and her 
husband a retiring hermit, Beg and Ishaq would have pushed her over 
the precipice.

Beg goes about, now a sadly diminished figure, issuing opaque 
statements and heading a political party which does not exist. But 
in those days his arrogance and sense of self-importance had to be 
seen to be believed. Ishaq is a lonely figure in Peshawer, unloved 
and unsung by a hapless people over whose destinies he ruled for 
five years. Two individuals more ill-suited to guide Pakistan 
towards democracy could scarcely have been chosen. Yet they were 
the luck of the draw that Pakistan had and what they did was as 
seminal in its import as Governor-General Ghulam Muhammad's 
dismissal of the first Constituent Assembly in 1954.

If Benazir, corruption and all, had been allowed to complete her 
term things might, just might, have turned out differently. As it 
was, post-Zia democracy in Pakistan was not to recover from the 
blow administered to it in 1990. It set the pattern for all that 

When Nawaz Sharif became prime minister in 1990 he proved to be as 
corrupt and inefficient as Benazir. But when he was thrown out of 
office three years later, it was not for his shortcomings but 
because of the threat he held out to clip Ishaq's presidential 

Three years later the same pattern, first set in stone by Beg and 
Ishaq, was repeated by General Karamat and President Leghari when 
between them they dismissed Benazir in 1996 during her second term 
as prime minister. The full story of that episode remains to be 
written but it is fairly certain that Leghari and Benazir had 
fallen out not on high matters of policy but small things of a 
personal kind.

When Leghari decided to finish with Benazir's government Karamat 
assured him of the army's backing little visualizing that Benazir's 
exit, especially in a forced manner, was almost an iron-clad 
guarantee for Nawaz Sharif's return to power. This is what 

If Nawaz Sharif then behaved in an overbearing manner or struck 
down one institution after another, who is to blame for that? His 
Gawalmandi psychology honed at the knees of his enterprising father 
or the sophisticated world view of those who set the ground for 
him? Did Leghari and Karamat have any illusions about what they 
were doing? If they did, who is to blame?

Over the past 12 years politicians have been guilty of many things. 
But in part if not in sum they have paid the price for their 
mistakes. What about those guilty of committing errors of a 
different kind: Beg's mishandling of Pakistan's response to the 
Gulf war, our decision to go overtly nuclear in May 1998 (a 
decision pushed more by the army than the civilian government, 
unless, of course, Gen Karamat has a different tale to tell) and, 
to crown everything, Kargil? Which set of errors weighs heavier in 
the scales?

The people of Pakistan have been abused enough. After 52 years is 
it not time their intelligence was insulted no further? Lack of 
vision, a total absence of a sense of direction, incompetence of a 
basic kind and corruption are the foremost Pakistani failings. Who 
can say in all honesty that all the fault lies on one side and all 
the virtue on the other? This is an absurd proposition. It is also 
far removed from the truth.

Kargil: the morning after
By Irfan Husain

IN my younger days, there were many evenings when I committed 
excesses for which I had to pay heavily the next morning by way of 
a splitting headache and a bilious sensation.

Mercifully, the resilience of youth, aided by some aspirin and Alka 
Seltzer, soon overcame the effects of overindulgence. 
Unfortunately, the hangover from the Kargil episode last year is 
far more persistent, and will take more than a few aspirins to 
cure. A year after the conflict, we are still feeling sharp twinges 
to remind us of the high costs and risks of ill-conceived military 

Having paid the price for the blunder in much precious blood, we 
continue to pay an exorbitant diplomatic cost. The latest item to 
be added to the Kargil bill is the real possibility of India 
joining the Security Council of the United Nations. Although this 
proposal had been knocking around for a few years, it wasn't taken 
very seriously. And after India tested its nuclear devices two 
years ago, its chances of gaining a permanent seat on the Council 
seemed dead and buried. But we may have resurrected it by allowing 
India to project itself as a mature, responsible state. Already, 
four out of the five permanent members have expressed support for 

In itself, the expansion of the Security Council is long overdue as 
its present composition reflects the balance of power that obtained 
just after the Second World War. Any sensible dispensation today 
should include economic powerhouses like Japan and Germany. India, 
with a billion citizens and a growing middle class, is poised to 
become a major player in this century, and seems a natural 
candidate for membership to the world's most exclusive club. But 
this objective reality runs counter to Pakistan's narrow 
objectives. Locked as the two countries are in a zero-sum game 
where one's gain is the other's loss, things are not going our way 
in strategic terms.

The problem with the Kargil operation was that for all its tactical 
brilliance in conception and execution, it was flawed in that no 
attention was paid to the inevitable diplomatic fallout. When 
considering grand strategy, all relevant factors - ranging from the 
economic to the diplomatic - are carefully studied. The military 
equation is placed in the larger international context before 
taking a decision. This was clearly not done, with the result that 
the Kargil adventure has backfired with serious consequences.

One of these consequences was the tone and tenor of President 
Clinton's televized address to the nation during his brief visit. 
He made it very clear that overt or covert military operations are 
simply not acceptable to the world community. The subtext was that 
Pakistan is in the doghouse while India is the paramount regional 
power. We may not like it, but this is currently the view from 
Washington. And more than ever before, it is the view from 
Washington that prevails in much of the world.

In response to the initial military setback it suffered in Kargil, 
the Indian government established a panel of experts to examine the 
causes for the intelligence failure that led to the fiasco. The 
panel has now produced a voluminous report that scrutinizes various 
military and non-military aspects of the short but bloody conflict. 
This report has been released to the public. We, too, need to draw 
some lessons from the episode. Above all, we need to know who 
authorized the operation, and whether the then PM had been fully 
briefed about the fact that the position of those on the Kargil 
heights was untenable, and that once the Indians reacted in force, 
they could not be re-supplied.

Another cost of Kargil was the removal of Nawaz Sharif's elected 
government. Never mind that not many tears were shed over his 
ouster: we are now in political limbo with the rest of the world 
treating us like a pariah state. 

Although it took several months to come to a head, the army's 
resentment against Nawaz Sharif finally resulted in a coup on 12 
October last year, and the junta is now fumbling in the dark with 
no clear idea of where to go and what to do.

Kargil has also strengthened the hands of the jihadi elements by 
sending out a clear signal that this government is willing to stick 
out its neck a very long way over Kashmir. General Musharraf's 
attempt to make a distinction between terrorism and jihad is 
finding no takers abroad, but internally, it makes it difficult for 
law and order agencies to take on these armed groups. And for the 
militants, armed action in Kashmir - often against unarmed 
civilians - is no different from acts of random violence within 
Pakistan. This is the hydra successive governments have created, 
and Kargil was the ultimate seal of approval.

Presumably, the idea behind the operation was to focus the 
international limelight on Kashmir in the expectation that the 
world would hasten to defuse a potential conflict that could go 
nuclear. If this was the strategic objective, then it backfired 
badly. The world was indeed very concerned during the fighting, but 
as the drama on the heights of Kargil unfolded, people in capitals 
around the world were very impressed by India's well-considered 
response. We were seen as the aggressors as nobody believed for an 
instant that Kashmiri militants could mount or sustain an operation 
of this magnitude. So at the end of the day, India came out 
smelling of roses, while we had egg all over our face.

Another setback to Pakistan has been the 28 per cent increase the 
Indian defence establishment has managed to squeeze from the 
government as a direct result of the initial reverses it suffered 
in Kargil. This increase represents Pakistan's entire defence 
budget, and the disparity between the two countries will grow 
wider, making a military solution to the Kashmir problem even more 

So militarily we are worse off, and diplomatically we are more 
isolated than we were at any point in our history. Internally, the 
political future is grimmer than ever. Whatever yardstick we use, 
Kargil has been an unmitigated disaster. Surely we have the right 
to know who was responsible for it.

Third Final: Injured Inzamam guides Pakistan to victory

PORT-OF-SPAIN (Trinidad), April 24: Inzamam-ul-Haq shrugged off a 
leg injury to make a crucial 39 not out that gave Pakistan a 2-1 
win over West Indies in the triangular tournament final series on 
(partially reported in Monday's edition).

Needing 115 in 50 overs to win the deciding third and last match, 
Pakistan slumped to 18 for three after a triple strike by fast 
bowler Reon King.

But Inzamam, batting with a runner during his courageous three-hour 
98-ball innings, led a fightback which edged his side to their 
target at 116 for six in 45.1 overs.

It was fitting the burly Inzamam should be at the crease when 
Pakistan secured their four-wicket win at Queen's Park Oval because 
he had played an influential role during the tournament with 295 
runs at an average of 59.00.

Inzamam guided his side out of their early crisis in a stand of 43 
for the fourth wicket with Younis Khan (17) and was later given 
staunch support by captain Moin Khan (10) and Wasim Akram (10 not 
out) in a tense, low-scoring contest.

Moin fell to King, giving the paceman career-best figures in One-
day Internationals of four for 25. But Inzamam, eventual Man-of-
the-Series, had the pleasure of hitting the winnings runs, a cut 
for four through backward point.

Zimbabwe, the third team in the tournament, were eliminated after 
the round-round stage.

West Indies and Pakistan now play a three-Test series that starts 
in Georgetown on May 5.-Reuters/AFP

Match-fixing: ICC asks PCB to submit report
Samiul Hasan

KARACHI, April 24: The International Cricket Council (ICC) has 
directed the Pakistan Cricket Board (PCB) to produce the judicial 
commission report on match-fixing in the Lord's meeting on May 2 
and 3.

According to insiders in the board, the instructions have come 
directly from ICC president Jagmohan Dalmiya. Dalmiya, according to 
sources, further told the PCB officials that the submission of the 
report has already been delayed.

He further said that the report would be discussed when the cricket 
board directors assemble at Lord's to deliberate upon the present 
crisis erupting with the admission of Hansie Cronje that he 
accepted bribe from an Indian bookmaker to pass on information 
about pitch and weather.

Dalmiya is said to have also told the PCB that the Australian 
Cricket Board and the Board of Control for Cricket in India (BCCI) 
have already submitted their investigations to the ICC.

The chairman of the PCB, Lt-Gen Tauqir Zia, had also admitted upon 
his return from the ICC meeting in Singapore in February that he 
has been asked to submit the document as soon as possible.

In the backdrop of recent instructions from the game's governing 
body, the PCB chairman is said to be having a meeting with the 
Patron of the PCB, President Rafiq Tarar sometime this week.

Sources said the Chief Executive, General Pervez Musharraf, is also 
expected to attend the meeting in which certain policy decision, 
regarding Justice Malik Mohammad Qayyum's commission report, would 
be discussed.

However, till Monday, sources in the presidency and Sports Ministry 
have denied having possession of the report which was prepared 
after more than a year's investigations by the Lahore High Court 

Inzamam to have surgery on heel
Qamar Ahmed

 GEORGETOWN (Guyana), April 26: In-form Pakistan batsman Inzamam-
ul-Haq is have an operation on the heel of his right foot because 
of a bone growth. The injury had been bothering him for some time. 
It aggravated during his match-winning innings at Port of Spain in 
the third final when he twisted his ankle while avoiding a run.

Inzamam will be rested for the first-class match against West 
Indies Under-23 starting from Thursday. It is the only four-dayer 
before the first Test starting here from May 5.

Inzamam said: "The heel has been bothering me for some time. I had 
been playing in pain for some time with pain killing injections. I 
can not afford to have an operation now in the midst of the Test 
series. But I shall have it done immediately after the series is 

It could mean that Inzamam may miss the Asia Cup or the series in 
Sri Lanka.

"I will have to see after the tour here how I am fixed up and how 
quickly I can have an operation," says Inzamam.

The four-dayer here was earlier scheduled to be played at the 
Everest Cricket Club but has now been shifted to Uitvlugt on the 
West coast near the Venezuelan border because the Everest Club 
ground is water logged.

International athletics meet: Pakistan to field 4 teams 
Farhana Ayaz

ISLAMABAD, April 27: Pakistan Amateur Athletics Federation (PAAF) 
have decided to field four teams in the next month's international 
athletics meet to be organized in Karachi.

Two units of PAAF, Pakistan Army and WAPDA, have been directed to 
form their teams. One outfit will be constituted out of eight other 
affiliates including Police, Pakistan Navy, PAF and Railways, while 
four provinces will form the fourth team. Railways will look after 
the affairs of the departmental team while Punjab will supervise 
the provincial side.

The idea behind fielding four teams was to provide opportunity to 
large number of athletes who will gain experience through 
contesting against foreign athletes.

Coaches and other officials contended that open trials to form one 
team would not have served the purpose of grooming athletes 
preparing for the IX South Asian Federation (SAF) Games likely to 
be staged in Islamabad.

Meanwhile, the PAAF nominated sprinter Maqsood Ahmad and long 
distance runner Shazia Hidayat to represent Pakistan at September's 
Sydney Olympics athletics competitions.

The federation had earlier nominated SAF Games long jump gold 
medallist Shabana Kausar, but the International Amateur Athletics 
Federation (IAAF) maintained that only track athletes could be 
invited to the Olympics as part of the token representation from 
each affiliated member national federation.

WORLD YOUTH ATHLETICS MEET: The PAAF will celebrate the World Youth 
(under-20) Athletics Day on May 7 here at Pakistan Sports Complex.

The meet is an open event for men and women athletes under 20 years 
of age. It is a part of IAAF's Youth Development Project, and is 
organized by all affiliates. The incentive for the winners will be 
a ballot for a IAAF hospitality at World Athletics Meet being held 
at Edmonton, England. The PAAF will submit the final results to 
IAAF which will carry out the draw for the winners.

The one-day meet will be contested in 100m, 1500m, high jump, long 
jump and javelin throw for men and women. Two events, 10km walk and 
110m hurdles will be also held for men, while 5km walk and 100m 
hurdles for women.

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.

Dawn page

Webbed by Philip McEldowney
Last update: .