------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 29 April 2000 Issue : 06/18 -------------------------------------------------------------------
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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through talks + More steps to promote Human Rights suggested + Increase in tariff rates: FIR against Hubco not to be withdrawn --------------------------------- BUSINESS & ECONOMY + Classified loans: Banks, NBFIs to follow uniform rules + Japan reschedules debt + Misreporting of fiscal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
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20000428 ------------------------------------------------------------------- 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 land-locked. "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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000426 ------------------------------------------------------------------- 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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000426 ------------------------------------------------------------------- Fresh move to replace Nawaz Sharif thwarted ------------------------------------------------------------------- Reporter 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 Tuesday. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000426 ------------------------------------------------------------------- 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 established." 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 21st".-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000425 ------------------------------------------------------------------- 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 Islamabad. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000424 ------------------------------------------------------------------- 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 later. 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 membership. 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 situation. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- 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 goods.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- 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 Lahore. 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 days. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000428 ------------------------------------------------------------------- Nawaz pleas to be heard on May 2 ------------------------------------------------------------------- Reporter 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 2. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000428 ------------------------------------------------------------------- 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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000423 ------------------------------------------------------------------- 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 groups. 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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000426 ------------------------------------------------------------------- Increase in tariff rates: FIR against Hubco not to be withdrawn ------------------------------------------------------------------- Reporter 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 ignored. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000429 ------------------------------------------------------------------- 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 smugglers. 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 relief. 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 said. 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.
=================================================================== BUSINESS & ECONOMY DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000429 ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- Japan reschedules debt ------------------------------------------------------------------- Correspondent 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 latter. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000426 ------------------------------------------------------------------- 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 bank. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000426 ------------------------------------------------------------------- Banking Laws Review Commission constituted ------------------------------------------------------------------- Correspondent 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000425 ------------------------------------------------------------------- Tax survey: Trade bodies to meet on 27th ------------------------------------------------------------------- Reporter 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 contradictions. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000425 ------------------------------------------------------------------- IRSA satisfied with water distribution ------------------------------------------------------------------- Reporter 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- Tea processing project revived ------------------------------------------------------------------- Correspondent 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- ADB provides Rs55m to NAC ------------------------------------------------------------------- Reporter 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 functional. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- WAPDA seeks Rs2.5 billion compensation from government ------------------------------------------------------------------- Correspondent 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 tax. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000428 ------------------------------------------------------------------- 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 limit. 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 sources. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000428 ------------------------------------------------------------------- IMF conditions not known as yet: Ishrat ------------------------------------------------------------------- Reporter 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 Facility. 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 Pakistan. "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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000425 ------------------------------------------------------------------- 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". DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000429 ------------------------------------------------------------------- Leading shares receive massive battering ------------------------------------------------------------------- Reporter 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 turnaround". 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 trader. 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 added. 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 4.00. 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
=================================================================== EDITORIALS & FEATURES DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000428 ------------------------------------------------------------------- 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 democracy. 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 minister. 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 so'? 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 back? 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 democracy. 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 followed. 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 powers. 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 happened. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000429 ------------------------------------------------------------------- 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 adventures. 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 India. 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 unthinkable. 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.
=================================================================== SPORTS DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000425 ------------------------------------------------------------------- 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 Sunday (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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000425 ------------------------------------------------------------------- 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 judge. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000427 ------------------------------------------------------------------- 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 over." 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000428 ------------------------------------------------------------------- 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.
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