------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 15 July 2000 Issue : 06/27 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Pakistan Navy begins Hammerhead exercises + Minister refutes allegations by US Congressmen + Age limit for CSS exam cut + Sindh won't be ignored: Chief Executive + HBL's list of defaulters given to NAB + British MPs not to back India on UN Security Council seat: Sultan + PTCL move to block Internet telephony + 3 provinces seek greater autonomy + Prosecution ends evidence in Helicopter case + Nawaz tells court he never indulged in corruption + Pakistan Telecommunication Co invites Rs4.2 billion bids + GST extended to Malakand division + Sailya calls for traders' strike + No further rise in gas prices: government --------------------------------- BUSINESS & ECONOMY + New Tax Amnesty Scheme shortly + Pakistan qualifies for shrimp exports + Pakistan State Oil to import fuel oil + Cisco Systems to invest $3-5m + National Accountability Bureau to get share from recovered amount + Software export target + Export of finished goods improves + Food import falls by 33% in 12 months + 100% computerized audit of firms to begin in Sept + 10% cut in customs duty on sugar import + KSE 100-share index ends lower --------------------------------------- EDITORIALS & FEATURES + The sole statesman-4 Ardeshir Cowasjee + Panache: what's that? Ayaz Amir ----------- SPORTS + South Africa in final as Pakistan finish winless + Captain, coach happy with team's showing + Defends action: Reid says everyone knows who is guilty + Waqar to be fined for bringing country's name into disrepute + Asian Jr squash championship: Ong Beng Hee beats Mansoor in final

Pakistan Navy begins Hammerhead exercises

KARACHI, July 14: Pakistan Navy began its 22nd annual war-game 
"Hammerhead 2000" at its Tactical School on the PN Dockyard here on 

The chief executive, Gen Pervez Musharraf, was chief guest at the 
opening session. He was briefed on the series of conceptual 

According to Inter-Services Public Relations, the exercise 
primarily revolved around the maritime scenario as well as parallel 
land and air battles.

Vice-Chief of the Naval Staff, Vice Admiral Mahmood Ali, outlined 
the aims and objectives of the exercise.

The exercise, he said, would enable the Navy to analyze in a real 
geopolitical backdrop the maritime threat faced by Pakistan, so as 
to evolve a composite and viable strategy to counter it. 

Minister refutes allegations by US Congressmen

 KARACHI, July 14: Pakistan on Friday maintained that remarks by 
some of the US Congressmen that Islamabad was tolerating terrorists 
on its soil were unfounded and part of disinformation.

"This is disinformation pumped in by the Indians and the US must 
guard against such attempts," said information minister Javed 
Jabbar while commenting on a report in which it had also been 
alleged that numerous Kashmiri "separatist" groups were involved in 
terrorism and they had used Pakistan as base.

"What is the source of this information. It is unfounded as 
Pakistan has done a lot on terrorism issue," he said.

Some US congressmen attending the meeting of the US House of 
Representatives Committee on International Relations on Wednesday 
had bitterly criticised Taliban and Pakistan for tolerating 
terrorists living and moving freely within their territory. Some 
Congressmen had also voiced concern over American role in 
encouraging and supporting militant groups in Afghanistan during 
Soviet occupation of that country.

He said the US administration had the capacity to deflect such 
attempts which were aimed to discredit Pakistan. 

Age limit for CSS exam cut
Faraz Hashmi

ISLAMABAD, July 12: The National Security Council on Wednesday 
rejected objections against allocation of 50 per cent seats for 
women in the proposed district governments.

It also decided to reduce upper age limit for candidates appearing 
in the central superior services (CSS) examination. The decisions 
were taken at a marathon meeting of the NSC which begun at 10am and 
continued till 4.45pm here today.

The meeting, presided over by Chief Executive Gen Pervez Musharraf, 
discussed various suggestions being received from cross section of 
society regarding devolution of power and district governments, a 
member of the council told Dawn.

The NSC reduced the age limit for candidates appearing in CSS 
examination on general seats from 30 to 28 years; for backward 
areas' candidates from 33 to 30; and for government employees with 
two years continuous service from 35 to 30, he said.

The age limit will be effective for the examination to be held in 
2001, he added. The National Reconstruction Bureau had received a 
large number of suggestions urging the government to review a 
proposal of allocating 50 per cent seats for women in the district 
and local governments.

The NSC after thorough deliberations rejected all such suggestions 
and concluded that 50 per cent seats would be fixed for women to 
give them due representation in democratic institutions since they 
constituted more than half of the population.

The 50 per cent seats would be fixed for women even if these would 
not be contested or remained vacant in the initial years, the 
member said.

Gen Musharraf reaffirmed his commitment to honour the Supreme Court 
judgment obliging him to restore the democratic institutions in the 
stipulated period.

The chief executive in a very "candid manner" assured that all the 
democratic institutions, including National and provincial 
assemblies as well as the Senate, would be put in place before the 
expiry of the three years deadline.

Highlighting the importance of taking on board all stake-holders in 
the devolution programme, Gen Musharraf emphasised that the plan 
envisaged decentralization of powers from the federal government to 
the provinces which, in turn, would strengthen provincial autonomy.

The chairman, National Reconstruction Bureau, Lt-Gen (retd) Tanveer 
Hussain Naqvi, gave a detailed presentation to the council on the 
progress of the devolution plan and responsibilities to the grass-
root level in order to ensure real and enduring democracy in the 

The NRB chief said that the elections for the district governments 
would be conducted in five different phases. The first phase would 
start with the holding of polls in eight districts in December; the 
second phase would be held in February; the third in April; fourth 
in May and the fifth phase in July, next year.

He said the NRB had almost finalised its plan of district 
governments and would submit it to the NSC in the last week of July 
or the first week of August, so that it could be unfolded by the 
chief executive on Aug 14.

Sindh won't be ignored: Chief Executive 

KARACHI, July 14: Chief Executive Gen Pervez Musharraf has said 
that his government would not take any decision against the 
interest of Sindh province or its people. "I assure and guarantee 
that any decision which would not be in the interest of this 
province will not be taken", he said during his meeting with the 
editors of Sindhi newspapers at Governor House here on Friday.

The governor of Sindh, Mohammedmian Soomro, federal minister for 
information, Javed Jabbar and chairman of Wapda, Lt Gen Zulfikar 
were also present at the meeting.

He said the government wants to bring about a socio-economic change 
in Sindh. He said this province had suffered from a sense of 
deprivation but his government was determined to put it on the path 
to prosperity. The chief executive said Sindh should have all its 
due rights which were previously denied to it.

"Forget the past which led to a sense of deprivation among the 
people of Sindh and work with a new spirit and zeal for the 
progress and prosperity of the province", he said adding that 
people will have to decide whether they want to live in the past or 
want to march forward.

He said all those living here, whether they speak Sindhi or Urdu or 
any other language have to work together for the betterment of 
Sindh. Karachi, he said is a cosmopolitan city where people from 
all parts of Pakistan live.-APP

HBL's list of defaulters given to NAB
Nasir Malick

ISLAMABAD, July 11: Habib Bank has submitted to the National 
Accountability Bureau a list of 40 "wilful" defaulters, including 
two Ittefaq Group mills, for taking action against them, according 
to documents obtained by Dawn.

These defaulters from all the four provinces have to pay a total of 
Rs16.21bn to the bank. The largest chunk, i.e. Rs9.7bn, is due from 
defaulters in Sindh followed by Rs6.6 billion to be recovered from 
companies in Punjab, Rs104m from Balochistan and Rs670m from the 

According to rules, NAB will send these cases to the recently set-
up committee headed by the governor of State Bank.

The committee would consider the cases individually and refer them 
to the reconciliatory committees. The recommendations of these 
committees on each case would then be followed by NAB.

British MPs not to back India on UN Security Council seat: Sultan 

MUZAFFARABAD, July 14: Azad Kashmir Prime Minister Sultan Mahmood 
Chaudhry said on Friday that a number of British parliamentarians 
had given an assurance that Britain would not support Indian bid to 
secure a permanent seat in the United Nations Security Council.

He said British Foreign Secretary Robin Cook would soon issue a 
statement in this regard.

Speaking at a news conference here at the Prime Minister House 
after visiting several foreign countries, Mr Mahmood said he 
criticized Mr Cook for his statement in New Delhi that Britain 
would support India for a permanent seat in the UNSC. He said the 
utterances of Mr Cook had greatly disappointed the Kashmiris, 
particularly those living in Britain, as they had great 
expectations from the Labour party and its government.

"Our stand on the issue is solid and convincing. India does not 
have any moral justification to become the permanent member of the 
Security Council because it has been blatantly disregarding the 
resolutions of the august forum," he said adding "That's why the UK 
MPs promised that Mr Cook will shortly deliver a statement in the 
parliament that Britain will not support India."

About his visit to Oslo, the AJK premier said Norway would play an 
important role whenever there were any advancement towards the 
settlement of the Kashmir problem. He recalled that during his last 
visit to Oslo he had formed Kashmir Committee in the Norwegian 
Parliament with six members. This time, he added, the membership 
had increased to 11, including MP Tariq Shahbaz of Pakistan origin.

PTCL move to block Internet telephony

ISLAMABAD, July 12: The Pakistan Telecommunication Company Limited 
is establishing two National Access Points (NAP) in Karachi and 
Islamabad to block Internet telephony and pornographic websites.

Informed sources said that the NAP was being installed to monitor 
exiting circuits, traffic analysis and effective utilization of the 
Internet bandwidth.

Telephone calls made via Internet have caused a huge revenue loss 
to the PTCL estimated to be in the range of US$2.8 million per 

The NAP will enable the PTCL to effectively block all voice 
telephony over the Internet and the subscribers will not be able to 
access the porn web sites, the sources said.

The PTCL has called tenders for establishing NAP till June 21, 2000 
up to 1030 hours.

Besides blocking the voice the NAP will also allow the PTCL to 
control a symmetrical solution and frame relay function.-APP

3 provinces seek greater autonomy
Ansar Abbasi

ISLAMABAD, July 12: Sindh, NWFP and Balochistan have sought greater 
provincial autonomy before the implementation of the district 
government plan, it is learnt. "Punjab did not have any such 
demand," sources in the National Reconstruction Bureau told Dawn. 
However, they added, the other provinces had asked the NRB that the 
functions and powers that were promised to be transferred to the 
provinces be transferred to them before the devolution of power to 
the district and tehsil level.

Though the formal response of the provincial governments on the 
district government plan is awaited as the provincial task forces 
are still deliberating the issue, the provincial authorities during 
discussions have demanded that senior administration and police 
officers should continue to be under the administrative control of 
provincial governments.

All the provinces have said that their chief secretaries should be 
the authority to transfer these officers but the NRB is consistent 
to go ahead with its plan which put these officers under the chief 

The chief mayor would appoint both the district coordination 
officer, and the district police chief from amongst the panel of 
officers proposed by the provincial government. The appointment 
would require the ratification of the district assembly.

The provinces have also reportedly said that such appointments 
should not be ratified by the district assemblies.

Punjab, sources said, was of the view that the powers of mayor be 
enhanced besides expanding the role of the local governments but 
the civil service structure at the district level should not be 

The NWFP had some reservations with regard to the 50 per cent 
allocation of seats for women in the district, tehsil and zila 
assemblies. They thought it was non-practicable and contrary to 
their social set-up.

Prosecution ends evidence in Helicopter case 
By Rafaqat Ali

ATTOCK, July 8: The prosecution on Saturday closed its evidence 
after producing 15 witnesses before the accountability court in 
Attock Fort in the helicopter case, involving the deposed prime 
minister, Nawaz Sharif and the deposed Saifur Rehman.

The proceedings were adjourned till July 17 on the "special 
request" of Nawaz Sharif, the main accused in the case, to allow 
him to prepare his statement which he would be asked to make under 
section 342 of CrPC.

The investigation officer, Khaliquzaman, was the last witness who 
deposed before the court, headed by justice Farrukh Latif. The 
prosecution witnesses included two former ministers Sartaj Aziz and 
Haleem Siddiqui.

On Saturday the FIA assistant director told the court that he had 
been assigned to investigate the case on Nov 29, 1999.

After stating that from where he had collected the documents, which 
were exhibited in the court as evidence, the investigation officer 
exchanged harsh words with Saifur Rehman.

When the court asked the accused to use their right of cross-
examination, Nawaz Sharif refused to do so, saying if he asked a 
question, it would be interpreted as if he had ended the boycott of 
the proceedings.

Saifur Rehman, the co-accused, said that the investigation officer 
was trying to take revenge from him as he had dismissed him on 
corruption charges.

The IO requested the court to allow him to respond to the 
allegations made by the accused. On getting permission from the 
court the officer said he had never been dismissed on corruption 

He added, in fact, his services had been hired by the defunct 
Ehtesab Bureau, headed by the accused, due to his excellent 
performance in the FIA.

Mr Khaliq said he remained in the bureau till Oct 12, 1999 when the 
PML government was removed.

The IO said if required he would produce every record of his 
employment to prove that he had neither been suspended, dismissed 
nor even faced corruption charges. He said he reserved his right to 
file a suit against Saifur Rehman for damaging his reputation.

The co-accused said the IO had been removed from FIA because he had 
a reputation of being corrupt. At this the IO said if he had been 
corrupt why he brought him to the Ehtesab Bureau.

Another prosecution witness, Wazir Zulfikar, informed the court how 
the MI-8 helicopter was brought into Pakistan.

The helicopter was first imported in the name of Javaid Aviations 
on Aug 29, 1993 and released without the payment of customs duty on 
provisional basis, the acting principle appraiser of the Rawalpindi 
Dry Port said.

Col Zareef had given an undertaking that the customs duty would be 
paid within a month.

At the end of the given period the Customs authorities issued a 
notice to Javaid Aviations, who filed a bill of entry, the witness 

He added, the aviation declared the value of the helicopter as 
$2,56,000 which was not accepted by the customs authorities and 
assessed the value at $8,90,000.

The witness said the value was assessed on the basis of the price 
quoted by Meridian which had earlier bought a helicopter for the 
Aga Khan Foundation. Redco had also offered to provide the same 
helicopter at a price of $8,90,000.

The witness stated that on the basis of the assessment the customs 
authorities asked Javaid Aviations to pay Rs73,14,764 duty.

He added that Javaid Aviations contested the assessment at the 
departmental level and after reassessment at $8,00,000 they paid 
Rs30,40,000 as duty. He further stated that Javaid Aviation filed 
an appeal before the appellate tribunal which disagreed with the 
assessment. The new assessment was made at $6,50,000. In the light 
of the appellate tribunal order Javaid Aviations were refunded 
Rs1,20,000. The check of refund was given to Col Zareef, he stated.

Nawaz tells court he never indulged in corruption
Bureau Report

ATTOCK, July 8: Former prime minister Nawaz Sharif, making a 
statement in the accountability court here on Saturday, said he and 
his family members were being victimized. He added that he had 
never indulged in corruption.

Mr Sharif said that due to his efforts, Pakistan had become a 
nuclear power and perhaps because of this he was being targeted. He 
said US President Bill Clinton had telephoned him five times in an 
effort to dissuade Pakistan from conducting a nuclear test. 
Clinton's each call lasted 40 minutes, he added.

Mr Sharif said British Prime Minister Tony Blair had also contacted 
him twice. He repeatedly asked the court: "Why I am being tried?" 
He said he had been convicted of hijacking a plane. "Do I look like 
a hijacker?"

The Judge Farrukh Latif told him that whatever he( Nawaz) was 
saying might be true, but it had no relevance as he ( judge) was 
only concerned with the case before him. The judge added that he 
had to proceed according to the law.

Mr Sharif said that if he was corrupt, some solid proofs should 
have been brought up. He said that if he had spent some money from 
his own pocket, why it should be painful to the government. He said 
Almighty Allah had bestowed on him a lot of bounties and his father 
had worked very hard to earn money.

Responding to Nr Sharif's statement, Prosecutor-General Farooq Adam 
said the ex-premier had challenged the government and added that 
big cases of corruption against him would soon be coming up. .

He said the government would never be vindictive and that only 
genuine cases of corruption would be processed.

Later, talking to party workers, Mr Sharif said the present setup 
would collapse soon and the Muslim League would emerge triumphant. 
He urged them to continue their struggle against the " oppression."

Pakistan Telecommunication Co invites Rs4.2 billion bids 
Ihtasham ul Haque

ISLAMABAD, July 8: Pakistan Telecommunication Co (PTCL) has invited 
bids for replacement of 4,70,000 old electro mechanical devices 
worth Rs4.2bn. The last date for submission is July 20 this year.

Four of the international companies have prequalified which 
included Ericsson, Siemens/TIP, Alcatel and the NEC (Japan).

Informed sources said the government has been approached by the 
prequalified companies to ensure transparency in the project. The 
government was told that some of the foreign companies which were 
also local manufacturers of various telecom devices had been 
ignored in the past though they had the superior technology and an 
experience for research and development. They alleged that quality 
has been compromised by extending the contract to WanBoo of China 
for supply of 270,000 lines on Built-Transfer basis in five 
packages in Dec '97. The supply consisted of switching, 
transmission, OSP & Acess.

The sources said the representatives of some international 
companies operating in Pakistan for the last many years have 
contacted the authorities and inquired as to how the contract to a 
Chinese company was awarded. packages.

These foreign companies informed the authorities the tender was 
limited to the supplier's of the four types of switches already 
installed in PTCL network. This decision was taken by the PTCL 
management because of the economics involved with the introduction 
of another switch.

The tender opened on March 31, '98 and M/S WanBoo/ZTE was one of 
the bidders even though their switch was not qualified. Theprice 
comparison was also given to the higher authorities by the 
international companies which felt that they had been ignored and 
that undue favour was done to the Chinese company. Following the 
opening, M/S WanBoo representing Zhongxing New Co. who were not 
qualified earlier, created a lot of pressure to have their bid 
accepted, including press advertisements etc. and this finally led 
to the cancellation of the bids.

The cancellation diminished the credibility of the tendering 
process and the genuine bidders found that time and money spent on 
the bids and the subsequent discussions had been in vain. Later the 
PTCL informed that the turnkey project would be directly negotiated 
with local manufacturers i.e. Alcatel and Telephone Industry of 
Pakistan (TIP) and also M/S WanBoo. And they were asked to submit 
revised prices. Both TIP and Alcatel, under protest, revised 
prices, which were evaluated as higher, and were asked to match the 
price per line offered by M/S WanBoo. Siemens/ TIP and Alcatel 
could not reduce their prices as much as the PTCL desired, as they 
saw that their comparison with Zhongxing New Co. was not fair on 
the following grounds:-there was no comparison or reference with 
regard to quality and reliability; Zhongxing New Co. was a startup 
company (since '94), mainly manufacturing PABXs and small rural 
type switch; they had relatively little experience in large public 
switches; according to various sources of information they had 
supplied less than 5% of the total Chinese market requirements.

The rest of the requirements had been met by companies such as 
Alcatel, Siemens, Ericsson, etc.; Their switches ZX110 had no 
reference outside China. Finally PTCL signed the contract with 
Zhongxing New Co, on Oct 17, '98.

The international companies engaged in local manufacturing are also 
believed to have informed the authorities that Pakistan market is 
rather small and it was not economically feasible for five switch 
suppliers to share this market. It was also not economical for PTCL 
to support training, maintenance, spares and upgrades for five 
switches in a small installed base of 3.5-3.8m lines. Normally 
operators work with only 2 to 3 reputed suppliers. 

GST extended to Malakand division
Bureau Report

PESHAWAR, July 12: The general sales tax (GST) on services, 
introduced in the province since July 1, would also be applicable 
to Malakand division which forms the provincially administered 
tribal areas (PATA), according to official sources.

"The North-West Frontier Province Sales Tax Ordinance, notified by 
the provincial government on June 27, would cover the whole of the 
province, including Malakand division, effective from the start of 
the new financial year on July 1", an official said.

As per the finance division estimates, of the total Rs6,860m 
collection under the head of GST on services, the NWFP would 
receive Rs928.844 million on the basis of its proportionate share 
in 2000-20001.

The hotel industry and other services of the Malakand division 
after coming under the sales tax ordinance, are expected to 
contribute a substantial amount of the GST to the provincial 

However, chances of success for the federal tax collection 
machinery, which would collect GST on behalf of the provincial 
governments, appears to be a remote possibility in view of the 
resistance the people of the area have been putting to the 
provincial authorities' successive attempts to collect agriculture 
income tax.

"Certainly, it is a big question mark as to how the new tax would 
be collected from the [Malakand] division where people have never 
acceded to provincial or federal taxes on the pretext that these 
are against Islamic injunctions," said an official.

For the last two years, the NWFP has been failing to raise any 
thing from Malakand division on account of agriculture income tax 
despite extending the tax net to the settled parts of the division 

Malakand division is, by and large, a tax-free zone with sales tax 
and customs duty (federal levies) which have recently been extended 
to the area, whereas income tax is not applicable to the whole of 
the division.

"It is not clear at the moment as to how the federal government 
would proceed to collect the new tax from the turbulent division in 
the absence of tax collection machinery there," said another 
official on request of anonymity.

Sailya calls for traders' strike

KARACHI, July 12: All Pakistan Organization of Small Traders and 
Cottage Industries (APOSTCI) has called for a three-day countrywide 
strike from July 21-23 against the tax survey, general sales tax 
and ill-treatment  of Multan traders, Faisalabad, Rawalpindi and in 
other cities.

This was announced by APOSTCI chairman, Umer Sailya at a press 
conference at his residence on Wednesday. While rejecting the on-
going tax survey, the APOSTCI chief also burnt around 1,243 survey 
forms outside his residence prior to the press conference.

He said the association members will start holding countrywide 
protest rallies, hunger strike and processions from Thursday as an 
elementary exercise to re-spark enthusiasm among the traders which 
they had showed last month by observing a record 15-day strike.

Meanwhile, convener Karachi Tajir Action Committee, Imran Saeed 
said that the association believes in negotiations instead to 
observing any strike. Chairman Karachi Electronic Dealers 
Association, Mohammad Irfan said his members are not in favour of 
any strike.

Sailya claimed that the government intends to initiate a media 
trial of local traders by paying $6 million to an American company 
to tarnish the image of local traders at global level. "We are 
ready to negotiate with the government but it is yet to show any 
flexibility in its attitude," he said. He asked the traders not to 
submit the forms and instead submit to him through their respective 

No further rise in gas prices: government 

ISLAMABAD, July 9: The government has made it clear that it has no 
intention of further increasing gas prices for domestic consumers.

A spokesman for the ministry of petroleum and natural resources 
said here on Sunday that there was no plan under consideration to 
abolish the current four-slab system in the case of domestic 
consumers and these slabs had been kept intact while notifying the 
15 per cent increase from July, 2000.

He said the price had been increased to cover the extraordinary 
increase in the cost of gas from the fields, which was linked to 
the international oil prices, which had gone up by almost 100% in 
the last one year and which had a serious impact on the cost of 

The spokesman said the government had levied general sale tax on 
all categories of consumers, including domestic, from 16.8.1999, 
and this would continue.-PPI

New Tax Amnesty Scheme shortly
Intikhab Amir

PESHAWAR, July 13: Federal Finance Minister Shaukat Aziz said on 
Thursday that a new tax amnesty scheme would be announced in the 
next couple of weeks to provide an opportunity to those who could 
not get their undeclared assets cleared during the recently 
concluded scheme.

"Modalities for the new scheme are being formulated and will be 
announced in next two weeks," Mr Aziz told members of the Sarhad 
Chamber of Commerce and Industry (SCCI) at a meeting here on 

Later, talking to journalists, the minister expressed the hope that 
the new scheme will be a success in view of the response of the 
recently concluded scheme in which Rs106 billion assets were 

"There is no precedent in the country's history as has happened 
this time round when in the national exchequer received Rs10.6 
billion tax," said Mr Aziz, adding there was much more than that 
which had not yet been declared.

He did not give any details of the new scheme. However, he hinted 
at an increase in the tax rate to be charged on the assets.

He rejected the figure of 12.5 per cent as was reported by some 

"We have not yet decided the ratio of the tax, but it would 
certainly be more than the last scheme," the minister said.

When asked about the possibility of extension in the date of the 
just ended scheme as the PTV ran an advertisement on Wednesday 
night eliciting opinion from the people, the minister said it was 
meant only to know the [people's] response on the scheme.

"The scheme, ended on June 30, will not be revived and it will be 
replaced by a new scheme," the minister said.

REFUNDS: In reply to SCCI members complaints he said the government 
was making all out efforts to ensure early refunds and remove 
bottlenecks in this regard to improve efficiency of the government 
agencies and restore business community's confidence.

Mr Aziz said a total of Rs60 billion had been refunded in 1999-2000 
of which Rs19.3 billion was of income tax, Rs22 billion sales tax 
and Rs18 billion customs duty.

It was 26 per cent more than the amount refunded in 1998-99, the 
minister said.

To avoid heavy refund liabilities in future, the government would 
improve the mechanism and officers with their subordinate staff 
would be questioned if there appeared instances of over-assessment, 
Mr Aziz said.

TAX SURVEY: The minister resolved that the tax survey campaign 
would continue at all costs.

"We are hopeful that a total of 2.5 million to 3 million people 
will be covered under the first phase of the survey which will end 
in September," Mr Aziz said.

Giving the latest figures of the tax survey, he said till Wednesday 
night a total of 464,000 forms had been distributed of which some 
120,000 had been returned.

The rationale behind the survey, the minister reiterated, was to 
enhance the country's tax-GDP ratio which was presently just 13 per 
cent, which was much less than the other countries of the region, 
whose tax-GDP ratio was 18 to 22 per cent.

He said the result was beyond expectations as a large number of 
people got themselves covered under the survey.

TASK FORCE: Mr Aziz said the country's tax system needed radical 
reforms for which a task force in the central board of revenue 
(CBR) had been constituted which would submit its report to the 
chief executive in three to four months.

The task force would hold its first meeting on Friday at Islamabad.

The finance minister is the chairman of the task force whereas 
State Bank governor, NAB chairman, and representatives from some 
other departments and the private sector are its members.

Pakistan qualifies for shrimp exports

KARACHI, July 11: Pakistan has been certified for inclusion in the 
list of countries qualifying shrimp exports to United States of 

The certification was given under Section 609 of United States 
Public Law 101-162, Marine Fisheries Department (MFD) said on 

According to a letter received by the government from US Embassy on 
Tuesday, the country was certified because it has demonstrated 
adoption of regulatory programme governing the incidental taking of 
sea turtle, comparable to the programme as effective in the USA. 

 All consignments will now be accompanied by DSP-121 form which 
must be signed by the exporters.

Pakistani exporters had been facing problems regarding shipments of 
shrimp to USA which claimed shrimp trawling was harmful, leading to 
drowning and death of entrapped marine turtles.

USA imposed strict regulations in 1996 that all shrimp trawlers 
must have turtle excluder devices (TED) in their nets.

The government has now assured the USA that all shrimp trawlers 
departing for fishing grounds have turtle excluder devices 
installed in their nets.

Certification by USA is a second achievement after inclusion of 
Pakistan's name in the list of European Union (EU) harmonized the 
country early this year.

Pakistan's annual exports of shrimp to USA, now pegged at 1,600 
metric ton (mt), is likely to increase, hoped Chairman, Pakistan 
Seafood Industries Association (PSIA), Tariq Ikram.

Total country's exports of fish and fish products during July-June 
(1999-2000) stood at $139 million (91,200mt) as compared to $121 
million (79,000mt) during the same period of the previous year.

In 1999, total landing of fish in the country (Balochistan, Sindh 
and Exclusive Economic Zone) remained at 474,665mt as compared to 
433,456mt during 1998, say figures of MFD. 

Pakistan State Oil to import fuel oil

KARACHI, July 13: Pakistan State Oil on Thursday became the first 
oil firm to issue a tender for fuel oil imports after the 
government announced it would deregulate the sector from July 1, 
officials said.

The state-run company, the country's largest oil marketing firm 
with more than 70 per cent market share for oil products, said it 
was seeking 240,000 tons of high sulphur fuel oil for August 

Previously fuel oil imports was done by the ministry of petroleum 
and natural resources, 75 per cent of which was bought under term 
contracts with Saudi Arabia and Kuwait with the rest purchased 
through quarterly spot tenders.

Industry sources said the move was part of government's policy to 
deregulate the oil sector. It was subsidizing some freight costs to 
keep oil product prices the same throughout the country.

The deregulation for fuel oil was announced in the budget for 
fiscal 2000/01 and finance minister Shaukat Aziz said last month 
that the government would allow private fuel oil imports from July 

Imports of other oil products would be deregulated gradually but 
there is not timeframe.

PSO virtually rules the fuel oil market, which largely constitutes 
the power sector, with an 85 per cent share and has the largest 
storage and distribution network for fuel oil.

Shell Pakistan, the country's second-largest oil firm said it had 
no immediate plans to import fuel oil and would meet its needs 
through local refineries.

A company official told Reuters that Shell might also buy fuel oil 
from PSO to meet its need.

"Actually it is only PSO which has storage facilities at Port Qasim 
for imports," he said.

There was no comment from Caltex Pakistan, the country's third oil 
marketing firm.

The PSO tender closes on July 19 and is valid until July 21.-

Cisco Systems to invest $3-5m

KARACHI, July 11: The world-wide leader in networking for internet- 
Cisco Systems, will undertake an initial investment to the tune of 
three to five million dollars in Pakistan.

This was stated by Rowland Griffiths, the Regional Director of 
Cisco Systems Middle East, while addressing a news conference here 
on Tuesday.

While announcing his organization's commitment to developing 
internet networking in Pakistan market, he said that Cisco office 
in Islamabad would be set up by the end of this year. Later, 
offices would be established in Karachi and Lahore.

Rowland was of the view that Pakistan is now a very exciting 
market. With a population of about 140 million and literacy rate of 
35 percent there are about 20 to 40 million eligible for the 
internet connectivity in the next two to five years' time.

He said that the present government's policies towards developing 
internet technologies are very encouraging. It gives a clear 
message that technology is now on the agenda at the highest levels 
of economic, trade, communications and education ministries and 
added that Cisco applauds this progressive stance on technology.-

National Accountability Bureau to get share from recovered amount
Bureau Report

ISLAMABAD, July 13: The National Accountability Bureau (NAB) will 
get a handsome share in any money recovered because of its efforts, 
Dawn learnt here through reliable sources. So far there had been a 
difference of opinion between the NAB and the Finance Ministry over 
the ratio of its share in the recovered money.

However, the issue has finally been resolved amicably and a 
notification has already been issued by the government spelling out 
the share of the NAB in the recovered amount. The NAB will get 
different percentage of the recovered amount as five different 
categories have been created for this purpose.

It will get 3 per cent as services and reward charges on money 
recovered from loan defaulters. In case of recovery of written off 
loans by the banks, the organisation will get 20 per cent of the 
recovered amount.

If the NAB helps in recovery of known CBR dues, it will get 10 per 
cent share while in case of recovery of unknown CBR dues like 
evaded taxes etc, NAB's share will be 30 per cent.

Money recovered from government officials, which they had earned 
through illegal means and corruption, would fetch the organisation 
25 per cent of the total recovered amount.

So far the NAB has recovered Rs 21 billion loan defaulters, evaded 
taxes, and corruption money.

Sources in the NAB said that it would approximately get around Rs 
1.0 billion from the amount recovered so far by its efforts thus 
making the organisation financially viable.

Software export target

ISLAMABAD, July 11: The country's software exports, currently 
standing at around $ 30 million per annum, are likely to increase 
by 300 per cent increase by the next two years, sources at the 
Ministry of Commerce said here Tuesday.

"It can be realized with the creation of a network of software 
technology parks throughout the country", the sources argued.

The sources informed that a software park was already in operation 
here at 'Awami Markaz' building which has been turned into a 
software park with 15 local and multinational companies working in 
this software park.

The government has provided various incentives to these companies 
where around 350 Informational Technology professionals are engaged 
in the work of software developing, the sources added. According to 
the sources,two more software technology parks will be established 
by the end of this year in Karachi and Lahore respectively.-APP

Export of finished goods improves
By Muhammad Ilyas

ISLAMABAD, July 10: Manufactured exports contributed 87.25 per cent 
to the total exports during the financial year 1999-2000, 
increasing slightly over 87.12 per cent for the previous year, 
detailed statistics released by the Federal Bureau of Statistics 
here on Monday show.

The year had seen a rise of 8.73% in exports totalling $8.45 
billion over 1998-99. The increase in exports was almost matched by 
increase in imports which too surged by 7.98%.

The impressive growth in export for the whole year reflects the 
achievement of the first 11 months. For the month of June, 2000, 
posted a far from rosy picture.

Compared to June 1999, the exports plummeted by 5.00 per cent last 
month, showing a marginal improvement of only 0.79% over May, 2000. 
In June 2000, moreover, all the major categories declined: Primary 
commodities by 19.26%, textile manufactures by 6.12%, Other 
manufactures by 24.12% over June, 2000. Exports during month 
totalled $766.00 million.

The share of textile manufactures in total manufactured goods 
exports also improved appreciably during the year from 63.93% in 
1998-99 to 65.04% last year.

The total value of textile manufactures exported during the year 
was $5.50 billion compared to $4.97 billion during the previous 

VALUE-ADDED: If we subtract from the value of exports of textile 
manufactures the value of cotton yarn and cotton fabrics, the total 
exports of genuinely value-added textile manufactures will come to 
$3.36 billion.

Thus the exports of value-added textile manufactures increased by 
15.57% over the previous year. Their share in total textile 
manufactures too moved up from 58.58% in 1998-99 to 61.20% in the 
year just ended.

The ratio might have been higher had the unit value of many textile 
manufactures been maintained at previous year's level.

It is the cotton fabrics, which have emerged on top as the earner 
of foreign exchange among textile manufactures. Their exports 
totalled $1.07 billion. 

 Their contribution, nevertheless, was marred by over 15% decline 
in its unit value. In spite of 11.73% increase in the volume of 
their export, the proceeds in dollars from their exports dropped by 

Similarly, the cotton yarn, which accounted for 19.32% of textile 
manufactures exports, was exported at rates lower by 6.72%, 
compared to 1998-99. The country exported 508,161 tons of cotton 
yarn during the year, up 20.57% from previous year. But the accrual 
to foreign exchange earnings increased only 12.46% to $1.06 

Likewise, knitwear, bedware, towels, and synthetic textile fabrics 
registered sizable decline in their unit value. In volume, their 
exports increased by 19.24%, 16.82%, 16.85% and 21.15% but in 
value, the proceeds from their exports increased by 17.69%, 13.86%, 
9.37% and 11.71% respectively. 

Food import falls by 33% in 12 months

ISLAMABAD, July 12: The import of foodstuffs plummeted by over 33 
per cent during 1999-2000, compared to previous year, which is said 
to be the steepest fall in Pakistan's recent history.

The total import bill at the end of the year stood at $10.18 
billion, up 7.98 per cent from 1998-99. But a significant feature 
of this is the fact that the share in it of the Food group dropped 
drastically to 10.74 per cent. In the previous year, it had 
accounted for 17.32% of total imports, according to the detailed 
statement of foreign trade statistics supplied by the Federal 
Bureau of Statistics.

The import bill of Food group last year totalled $1.09 billion, 
compared to $1.63 billion in 1998-99.

Although the country has assumed its old position of being the net 
importer of sugar once again, the main contributory factor was the 
39% decrease in the quantity of wheat imported (1.966 million tons 
against 3.24 million tons in 1998-99). This reduced the expenditure 
in foreign exchange on its import by over 32%. The quantity of 
sugar imported during 1999-2000 was 61,675 tons.

Major event, however, was the sharp drop in import of edible oils, 
with the import of soyabean oil dropping by 44.49% and that of palm 
oil by 13.97% in quantitative terms. Their import bill totalled 
$405.51 million compared to $824.14 million in the previous year.

Likewise, their share in Food Group imports declined from 50.42% in 
1998-99 to 37.03% last year. Another noteworthy aspect of their 
import is the declining value in international market.The item 
which, however, registered a steep increase was the pulses that are 
the most neglected segment of agricultural crops in Pakistan. A 
total of 298,739 tons of pulses were imported in 1999-2000, that 
is, about 94,000 tons more than in previous year.

The share of Machinery Group in total import bill in 1999-2000 was 
19.03%, down from 23.30% in the previous year. With $1.93 billion 
worth of imports, it has fallen behind Agricultural chemicals group 
($1.97 billion).

Imports of Machinery Group show a decline of 11.84% over the 
previous year. The only items in this Group which indicate rising 
trend are office machines including computers etc., textile 
machinery, tractors etc. and road motor vehicles.

The country spent nearly $400 million (Rs18 billion) on the import 
of road motor vehicles, that is, 8.76% more than in 1998-99.

As part of the government's efforts to upgrade the textile 
industry, the import of textile machinery is shown to have gone up 
by 26%.

There was sharp decline in import of fertilizer (-25.48%), 
insecticide (-18.60%) and medicinal products (-2.28%). The only 
item which showed increase was plastic materials (6.16%).

All the items in the metals group have increased in imports - by 
5.39% - while the import of "Miscellaneous Group" declined by 
0.18%. This group includes mostly intermediate products used by the 
tyre and tube industry etc.

In the month of June, however, the imports of petroleum group alone 
showed positive growth. Imports of all the groups declined, 
indicating interregnums in economic activity because of uncertainty 
about the impact of budget. 

 Total import bill ($887.78 million) declined both in comparison 
with previous month (-.683%) and with June 1999 (18.56%).

100% computerized audit of firms to begin in Sept

ISLAMABAD, July 12: The Income Tax Department will conduct 100% 
computerized audit of the companies and registered firms from 

IT circle offices throughout the country would be stripped of the 
powers to send tax-compliance notices to individual taxpayers after 
December, cut-out date set for completing the taxpayer profiles 
through the new system. Computer-generated compliance notices to be 
sent directly to the taxpayer.

The Central Board of Revenue approved on Wednesday the launch of 
software produced by the Pakistan Revenue Automation Limited 
(PRAL), and authorized the company to avail itself of the entire 
income tax data for tax-profiling of the taxpayers throughout the 

All the income tax regional commissioners have also approved the 
software as operative and have directed the circle offices of the 
department to pool in the data with PRAL for carrying out the job. 
Chairman PRAL, Javed Agha told Dawn here on Wednesday that the 
taxpayer profiling on companies and registered firms would be 
complete by September, after which the CBR would be able to monitor 
the income tax assessments by these two sectors, relating to the 
second and third quarters of the current financial year.

He added that 80% of the associations of persons (AOPs), UDFs, 
salaried persons, and those filing their returns under the self-
assessment schemes, would be profiled by December 2000. All manual 
methods of auditing and monitoring would thus be removed from the 
income tax department and the circle offices would be stripped of 
their powers to send compliance notices to the individual taxpayers 
once these profiles are complete by December 2000, he added.

He further said that the under-assessment by taxpayers would be 
instantly monitored through this system, and computer-generated 
compliance notices will be issued directly to the taxpayer, without 
the involvement of the department officials. This, he said, would 
complete the process of doing away the tax official-taxpayer 
contact for the purpose of compliance, which has hitherto remained 
an unfulfilled promise made with the taxpayers.

He further explained that the compliance notices will be based on 
an analysis of the declaration made by the taxpayer, and the amount 
of tax calculated as per the method of calculation of the relevant 
tax-head stipulated in the Income Tax Ordinance, 1979.

The added benefit of such a notice issued through computerized 
audit to the taxpayer would be that the taxpayer would be informed 
about the method of calculation of tax, and about the punishment in 
case of non-compliance. 

 The programme of the audit software, evolved over the last two 
years, has been made in a manner that the second notice would be 
generated by the computer on exactly the same date as prescribed at 
the time of issuance of first notice. This, Agha said, would do 
away with the human factor erring on meeting the target dates in 
issuing compliance notices to the delinquent or defaulting 

10% cut in customs duty on sugar import 
Bureau Report

ISLAMABAD, July 14: The Economic Coordination Committee (ECC) of 
the cabinet on Friday decided to further reduce the customs duty on 
the import of sugar to only 10%.

Presided over by Finance Minister Shaukat Aziz, the meeting 
reviewed the sugar situation and noted that sugar price had been 
under pressure for the last two months owing to various reasons, 
including slow inflow of imports.

It directed the industries ministry to coordinate with provincial 
governments and sugar mills associations, and ensure that no 
artificial shortage of the commodity was created and supplies were 
stabilized in the market.

The ECC decided to maintain the existing support price of 
sugarcane, but directed the provincial governments to design long-
term and short-term programmes and earmark 15pc of the sugarcane 
cess for development of this crop.

The meeting approved many incentives for the export processing zone 
to promote investment. The decision was taken on a report of the 
sub-committee constituted by the ECC to address various issues 
regarding foreign investment by expatriate Pakistanis and other 
investors. With these incentives, the zone would be on a part with 
other zones in the region.

The meeting was informed that the task force on expatriate 
Pakistanis had finalized its recommendations for extending better 
facilities and incentives to them both for remitting their foreign 
exchange through normal banking channels and for making investment 
in Pakistan. In this regard, a report would be presented to the 
government for its approval and implementation.

Another sub-committee set up by the ECC to clear the 
cargo/consignments lying at the Karachi Port Trust and Port Qasim 
Authority for long, presented an interim report.

The meeting was informed that the pace of work for clearance of 
dead assets was satisfactory and the private sector had responded 
positively to get their consignments cleared. For ensuring that no 
such backlog of consignments is built up again, the meeting decided 
that KPT and PQA would submit quarterly report to ECC so that it 
could take appropriate decisions for an early disposal of the 

The ECC approved the creation of an Agricultural Research Endowment 
Fund for Agriculture Linkage Programme to promote exchange of 
research scientists and technical knowledge, and to institute long-
term support and cooperation between Pakistan and the USA.

To utilize Nandpur and Panjpir low-quality gas and keep Fauji 
Kabirwala power plant in operation, it was decided that a total 
18.8 MMCFS gas would be supplied to the project. The OGDC would 
make up a shortfall of equivalent supplies to SNGPL by providing 
additional gas from its other fields.

The ECC reviewed the prices and availability of essential items in 
the country and noted that the price index showed an overall 

It was informed that the prices of 37 items, out of 47, either 
declined or remained stable during the week ending on July 6. The 
annualized change in the kitchen items index on a week-to-week 
basis worked out to be 3.92pc.

The ministers for commerce, petroleum and natural resources, labour 
and manpower, and chairman of the Privatization Commission also 
attended the meeting.

KSE 100-share index ends lower

KARACHI, July 14: Stocks on Friday maintained an uppish leaning and 
rose in patches but the late weekend selling in some of the 
pivotals allowed them to finish with clipped gains.

Trading volume again shrank to 67m shares, about a half of the 
overnight figure, reflecting that leading buyers and seller 
maintained a status quo at the weekend session.

The KSE 100-share index after initial rise, ended lower by 2.82 
points at 1,539.77 points as compared to 1,542.59 a day earlier as 
some of the leading base shares finished with extended gains.

But the market at no stage showed signs that technical rally 
initiated early in week is overdone and indications are that it 
will be sustained during the next week too.

"The market has just took a pause to consolidate its initial gains 
and there is no reason to believe that investors are leaving amid 
fading optimism about the sustained run-up", said a leading stock 
analyst Ali Reza.

Investors including institutional traders and brokerage houses have 
just completed their stock taking for the financial year ended June 
30, and they have resumed buying for the new fiscal, he added.

"We are awaiting official word on the sell-off of PSO and Sui 
Northern after the calling of bids from the seven short-listed 
companies for the LPG units", said a member of the KSE, adding, 
"funds are being lined-up by the investors to be a part of these 
mega issues."

Resumption of active short-covering in the pivotals such as Hub-
Power, PTCL, ICI Pakistan and some others reflects that the market 
is well on the way to keep bullish amid changing positive basic 

Fertiliser share, for instance, drew much strength from reports 
that arrangments have been made to export a million tonnes of urea. 
All the fertiliser shares, notably Dawood Hercules, Fauji 
Fertiliser and FFC-Jordan Fertiliser attracted good support at the 
lower levels followed by the report.

After a relative sluggishness for the last several weeks, Hubco has 
again assumed the role of most actives thanks to heavy covering 
purchases from almost all the quarters including the foreign funds. 
Over the week, it remained the most active scrip, relegating PTCL, 
ICI Pakistan and PSO to the secondary position.

"Despite a weak economy all the basic technical factors point to a 
bull-run in the coming sessions and the current bottom rates could 
attract any amount of short-covering", stock analysts at the KASB 
CO said.

Plus signs dominated the list, major gainers being Adamjee 
Insurance, Gul Textiles, Attock Refinery, Dawood Hercules, Parke-
Davis, Wah Noble Chemical, and Security Papers, which rose by Rs 
2.00 to 4.80 but the largest rise of Rs11.15 was noted in Shell 
Pakistan which attracted strong institutional support at the lower 

Some of the investment shares, notably first and 9th ICP, Al-Faysal 
Bank and Jahangir Siddiqui Bank also rose by Rs1.50 to 2.05.

The biggest decline of Rs18.00 was recorded in Nestle Milkpak for 
not apparent bearish reason, followed by Service Industries, 
Mehmood Textiles, Fatima Enterprises, Pakistan Tobacco, Balochistan 
Wheels, BOC Pakistan and General Tyre, falling by Rs1.20 to 5.00.

DEFAULTER COMPANIES: After a recent sluggishness, active trading 
was witnessed on this counter where eight shares of eight companies 
were traded under the lead of Khurshid Spinning, unchanged at 
Rs2.50 on 10,500 shares.

Other actives were led by Chenab Textiles, up 25 paisa at Rs3.00 on 
5,000 shares and Norrie Textiles, unchanged at Rs1.10 on 2,000 

BOARD MEETINGS: Johnsons & Philips Pakistan July 15, Jahangir 
Siddiqui Investment Bank July 20, A.A.Textiles July 24 and Lever 
Brothers Pakistan July 9.

Back to the top
The sole statesman-4
Ardeshir Cowasjee

THOSE alive today who knew Mohammad Ali Jinnah (and strangely the 
number is increasing by the day) were well aware of what he wanted. 
He achieved his ambition and founded for us what he intended to be 
a democratic, forward-looking, modern, secular state. Those who did 
not know him, have, for reasons of expediency, conjured up their 
own version of what he wanted. Jinnah's Pakistan died with him.

In the last fifty-three years this country has changed its name and 
status three times. It started life as a Dominion, which it 
remained until 1956, when under the constitution promulgated that 
year, it became the Islamic Republic of Pakistan. In 1962, Field 
Marshal Ayub Khan, who had abrogated the 1956 constitution when he 
took over the country in 1958, promulgated his constitution and 
declared it to be simply the Republic of Pakistan. Then he became a 
politician, expediency came to the fore and by his First 
Constitutional Amendment Order of 1963 we again became the Islamic 
Republic of Pakistan.

In the preamble to the Constitution of 1973, now suspended by 
General Pervez Musharraf, certain paragraphs of the Objectives 
Resolution of 1949 are reproduced and one sentence reads: "Wherein 
adequate provision shall be made for the minorities freely to 
profess and practise their religions and develop their cultures;"

Under Article 2-A of the 1973 Constitution the Objectives 
Resolution has been made a substantive part of the Constitution and 
reproduced in the Annex. In this reproduction the sentence quoted 
above reads : "Wherein adequate provision shall be made for the 
minorities to profess and practise their religions and develop 
their cultures;" The word 'freely' has been deliberately omitted. 

Now to a press conference held by Mohammad Ali Jinnah on July 14, 
1947, in New Delhi. The text of this conference is to be found in 
the book recently published by Oxford University Press "Jinnah - 
Speeches and Statements 1947-1949" (ISBN 0 19 579021 9) and from it 
I quote relevant portions :

Q. Could you as governor-general make a brief statement on the 
minorities problem?

A. At present I am only governor-general designate. We will assume 
for a moment that on August 15 I shall be really the governor-
general of Pakistan. On that assumption, let me tell you that I 
shall not depart from what I said repeatedly with regard to the 
minorities. Every time I spoke about the minorities I meant what I 
said and what I said I meant. Minorities to whichever community 
they may belong will be safeguarded. Their religion or faith or 
belief will be secure. There will be no interference of any kind 
with their freedom of worship. They will have their protection with 
regard to their religion, faith, their life, their culture. They 
will be, in all respects, the citizens of Pakistan without any 
distinction of caste or creed. The will have their rights and 
privileges and no doubt along with this goes the obligations of 
citizenship. Therefore, the minorities have their responsibilities 
also, and they will play their part in the affairs of this state. 
As long as the minorities are loyal to the state and owe true 
allegiance, and as long as I have any power, they need have no 
apprehension of any kind.

Q. Would your interest in the Muslims of Hindustan continue as it 
is today?

A. My interest will continue in Hindustan in every citizen and 
particularly the Muslims.

Q. As president of the All India Muslim League what measures do you 
propose to adopt to assure the safety of Muslims in Hindu 

A. All that I hope for is that the Muslims in the Hindustan states 
will be treated as justly as I have indicated we propose to treat 
non-Muslim minorities. I have stated the broad principles of 
policy, but the actual question of safeguards and protection for 
minorities in the respective states can only be dealt with by the 
Constituent Assembly.

Q. What are your comments on recent statements and speeches of 
certain Congress leaders to the effect that if Hindus in Pakistan 
are treated badly they will treat Muslims in Hindustan worse?

A. I hope they will get over this madness and follow the line I am 
suggesting. It is no use picking up the statements of this man here 
or that man there. You must remember that in every country there 
are crooks, cranks, and what I call mad people.

Q. Would you like minorities to stay in Pakistan or would you like 
an exchange of population?

A. As far as I can speak for Pakistan, I say that there is no 
reason for any apprehension on the part of the minorities in 
Pakistan. It is for them to decide what they should do. All I can 
say is that there is no reason for any apprehension so far as I can 
speak about Pakistan. It is for them to decide. I cannot order 

Q. Will Pakistan be a secular or theocratic state?A. You are asking 
me a question that is absurd. I do not know what a theocratic state 

A correspondent suggested that a theocratic state meant a state 
where only people of a particular religion, for example Muslims, 
could be full citizens and non-Muslims would not be full citizens.

A. Then it seems to me that what I have already said is like 
throwing water on a ducks's back. When you talk of democracy I am 
afraid you have not studied Islam. We learned democracy thirteen 
centuries ago.

Just under one month later, on August 11, Jinnah addressed his 
Constituent Assembly at Karachi. He told the future legislators :

". . . . . . . you will find that in course of time Hindus would 
cease to be Hindus and Muslims would cease to be Muslims, not in 
the religious sense because that is the personal faith of each 
individual, but in the political sense as citizens of the state.

"Well, gentlemen, I do not wish to take up any more of your time 
and thank you again for the honour you have done to me. I shall 
always be guided by the principles of justice and fair play without 
any, as is put in political language, prejudice or ill-will, in 
other words, partiality or favouritism. My guiding principle will 
be justice and complete impartiality, and I am sure that with your 
support and cooperation I can look forward to Pakistan becoming one 
of the greatest nations of the world."

As long as the majority of our people remain uneducated their 
thinking can only be narrow and bigoted. All we can do is 
constantly keep on reminding them of what Jinnah, the founder of 
their country, said and wrote.

Panache: what's that? 
Ayaz Amir

FOR all its many and splendiferous strengths, one of the problems 
with the Pakistan army is the pervasive lack of imagination in its 
upper reaches. The bravery, often against daunting odds, of the 
ordinary soldier and young officer and the closed mind of the 
superior commander: this is the story of the Pakistan army.

The military engagements which are the pride of the Pakistan army 
have been company or battalion-level encounters in which grit and 
raw courage have made all the difference between defeat and 
victory. The higher direction of war, by contrast, has been a 
record of unrelieved failure. Grand Slam, Gibraltar, that clown 
Niazi's tactics in East Pakistan, the illusions that marched up the 
Kargil heights: one is left wondering about the kind of thinking 
which must have gone into the making of these disasters.

Partly this is because of the Pakistani climate. Our young 
officers, like young Russian beauties, are amongst the most 
promising in the world. When they reach the plot and house-
acquiring stage something happens to them. They become soft and 
cautious around the waist.

But partly it is a question of inheritance. The Pakistan army is 
not a successor to the hordes of Genghis Khan or Attila the Hun. It 
is a direct descendant of the British Indian army and to a large 
extent has been touched by the plodding qualities of the British 
fighting tradition. The British qualities are pluck and tenacity 
and, Shakespeare and other poets notwithstanding, not those of 
imagination. For four hundred years, it is true, Britannia ruled 
the waves but that was because of a panache and skill on water that 
Britain's generals were seldom able to demonstrate on land. Which 
accounts for the fact that Britain's greatest heroes are seamen: 
Raleigh, Drake and the incomparable Nelson.

Brilliant soldiers have been the exception in British history: the 
great Duke of Marlborough in his wars against the French, Arthur 
Wellesley (the later Duke of Wellington) in his Spanish campaign 
against Napoleon and, possibly, Field Marshal Wavell in his North 
African campaign against the Italian army, although being against 
the Italians, takes away something from Wavell's achievement. 
Trench and static warfare specialists have been the norm: 
Kitcheners, Haigs and Montgomerys fighting wars the way the British 
play their football, with all the finesse of a bull attacking a 
brick wall.

The upper echelons of the Pakistan army have not remained untouched 
by this spiritual legacy. The two serious wars the army has fought, 
in 1965 and '71, were dogged affairs, marked by bravery and 
tenacity on both sides but little strategic panache or daring. 
Indians may hold the East Pakistan campaign to be a brilliant 
operation but then this amounts to extracting glory from a biased 
battlefield in which all the advantages lay on one side. Moreover, 
against that clown Niazi it would have been easy for any Indian 
general to put on rouge and look like General Heinz Guderian.

The trouble is that if the General Staff (a term which I use as a 
broad metaphor) has shown little imagination in war it has shown 
precious little in peace. Stepping into the political arena it 
cannot help, partly out of habit, partly because of the glorious 
ineptitude of Pakistan's politicians. But once in the political 
arena it shows all the imagination of a horse with blinders on its 
eyes going round and round a Persian well.

Every conqueror who comes marching into the political arena thinks 
he is inventing first principles. No fallacy is greater than this. 
Do the present masters of the political scene really think they are 
breaking virgin soil? Accountability, the corruption of 
politicians, cleansing the bureaucracy, grass-roots democracy, the 
army being the answer to every problem: a weary nation has heard 
all this before. The faces are new, the ideas being peddled (if 
ideas these half-baked notions can be called) are as old as that 
mother of all coup d'etats: the one mounted by Iskander Mirza and 
Ayub Khan in 1958.

And what is the consequence? Nothing is working. Every initiative 
proclaimed with a loud blast of trumpets - including, let it be 
noted, the tax survey drive - has run into the sand. The country is 
at a standstill, rooted to the same spot, the national horizon 
lined with uncertainty.

What a wasting of opportunity. Without quarrelling with what led up 
to October 12, the army command after seizing power had a golden 
opportunity to give the nation a fresh start. Nine months down the 
road, it should be obvious even to the most committed partisan that 
the opportunity has been blown. For a simple reason. The higher 
direction of politics, which is what the circumstances required, is 
proving to be, yet again, not the army's cup of tea. General 
Musharraf and his colleagues should have been riding and 
masterminding events. Instead, they are being buffeted by them.

How many of this government's initiatives have not run into the 
sand? It is not as if Umar Sailya (who, thanks to the government's 
mishandling of the tax issue, has become a household name in 
Pakistan) or the clerics of the bearded brigade who put the 
government to flight over the anti-blasphemy law are too much for 
the Pakistan army. Not at all. But what is to be done if the army 
command is bent upon pitching its strength into the wrong battles, 
dissipating its energy, losing sight of the larger picture, 
spreading frustration both within its own bailiwick and the country 
at large? The army deserves better and so does the nation.

How long would it have taken a military commander who knew his mind 
(an all-important proviso) to knock heads together, carry out a 
swift political purge (so as to get rid of the Sharifs and the 
Bhuttos), pin the Nishan-i-Pakistan on President Tarar's chest 
before dining him out and sending him home, become president 
himself with the power to run foreign policy and appoint the 
service chiefs, towards this end amend the Constitution - the 1973 
Constitution being the world's most resilient and elastic document 
- and then from amongst the depressing lot which constitutes our 
political elite choose a Muhammad Khan Junejo to get on with the 
urgent business of restoring this shell-shocked Republic to normal 

Victory comes not only to the brave but to the swift. Daunting as 
this agenda looks it is the slash-and-cut work of a single hectic 
fortnight, no more. But provided the Napoleon in question knows his 
mind. Provided he has imbibed the lessons of military interventions 
past. Provided he has not acquired a taste for the trappings of 
power. Provided he has the good of the nation at heart. A long list 
of provisos but not difficult to meet. Provided, furthermore, that 
the titans of the present order concentrate on the task at hand and 
not extraneous things. What call for one of these titans to take 
over cricket, for another to conquer the commanding heights of 
hockey? Sends the wrong signals about the spare time at their 
disposal. Devotees of trench warfare or not, even the Kitcheners 
would be nonplussed.

The Supreme Court gives a political timeframe of three years and 
the generals heartily approve. Wars we cannot fight for more than 
seventeen days, this being the subcontinental record since 1947, 
but political planning we like to take into the indefinite future 
(a three years' timeframe in Pakistan being a very uncertain 

An objection I often encounter is that criticism is not enough; 
solutions must also be offered as if there was a switch out there 
pulling which would give us the right taxation policy or the 
correct approach to agriculture. Pakistan's foremost problem is to 
get the broad picture right. Details are important but their time 
will come thereafter. Even economic policy comes to nothing if 
politics is in a mess, something which trained economists, 
especially the fly-by-night kind inflicted from abroad, find 
difficult to understand.

Generals and politicians will have to come together to agree on a 
political framework which gives the country stability. For this 
they will have to recognize their interdependence. Generals will 
have to find some cure for the delusion that they are the answer to 
the problems of the universe. Politicians will have to stop 
pretending that politics in Pakistan, for the foreseeable future, 
can be wholly autonomous from the military. With or without 
military rule, Pakistan has a strong authoritarian tradition, 
rolling back which will require the highest sagacity. On this, and 
not chest-thumping or empty boasts, depends the future of Pakistani 

South Africa in final as Pakistan finish winless

COLOMBO, July 12: Unheralded David Terbrugge caused a dramatic 
Pakistani collapse here on Wednesday to hand South Africa a seven-
wicket win and a place in the Singer Cup final against hosts Sri 

The 23-year-old fast bowler from Gauteng claimed four wickets in 
only his second one-dayer and wicket-keeper Mark Boucher snapped 
five catches as Pakistan were shot out for 153.

Opener Gary Kirsten then hit 46 as South Africa overtook the modest 
target in the 38th over to set up a title clash against the hosts 
on Friday.

Pakistan's gamble to bat first under an overcast sky - to give 
their three spinners a chance on the wearing wicket in the second 
innings - failed miserably.

Terbrugge, making his first appearance in the tri-series and 
without an international wicket under his belt, struck in each of 
his first three overs at the Sinhalese sports club ground.

South African captain Shaun Pollock chipped in with two wickets as 
Pakistan tumbled to 19-6, five of them to catches behind the stumps 
by Boucher.

Pakistan were saved from falling short of their lowest one-day 
score - 43 against the West Indies in 1992 - by a gritty rearguard 
action which saw the last four wickets put on 134 runs.

Skipper Moin Khan and Azhar Mahmood added 30 for the seventh 
wicket, with Moin hammering 19 off 18 balls with two boundaries and 
a six.

Mahmood went on to make 36, sharing an eighth-wicket stand of 41 
with Shoaib Malik, before he ran himself out attempting a risky 

Malik (28) and Mushtaq Ahmed (34 not out) then added 55 for the 
last wicket, both batsmen recording their highest one-day scores.

Pakistan removed opener Andrew Hall in the fifth over, but the 
absence of their trusted new ball pair of Wasim Akram and Waqar 
Younis saw them crashing to their fourth successive defeat.

Wasim had opted out of the series for personal seasons, while Waqar 
was not considered for this match after being banned from the 
previous one for tampering with the ball.

Captain, coach happy with team's showing

KARACHI, July 13: Pakistan captain Moin Khan and coach Javed 
Miandad termed the four-month tour as highly successful. "The 
victory in the tri-series would have been a perfect icing on the 
But fact of the matter is that after having touched rock-bottom 
following defeats to Australia and Sri Lanka, the team played 
splendidly," Miandad and Moin told reporters at the Quaid-i-Azam 
International Airport here on Thursday.

"The performance of the players showed their mental toughness and 
ability to lift themselves from the scratch," Moin said.

Miandad defended Pakistan's defeat in the tri-series saying the 
players had been playing non-stop cricket for the last eight months 
and might have stalled.

"It is very difficult to play consistently for such a long period. 
Until the Tests, things were great for us. But unfortunately all 
the batsmen ran out of form when the one-dayers started.

"But for the team, winning the Asia Cup for the first time was a 
great achievement. We looked invincible because the batsmen posted 
huge totals on the board," Miandad said.

He felt that Wasim Akram's absence in the one-dayers also made a 
difference, a view on which Moin agreed. "Wasim is the best user of 
the new ball. His form was excellent.

"It's not that Pakistan is a one-man team but fact of the matter is 
that Wasim is too good a player. It's really difficult to plug the 
gap when he is not around," Moin observed.

Miandad felt that victory in Sharjah was the perfect topic which 
lifted the morale of the team. "We defeated South Africa twice, a 
thing which we had not done in the previous 14 meetings. Naturally 
that victory helped the players believe in their abilities."

Moin said the point that needed to be highlighted was that the team 
comprised mostly on youngsters who excelled against tough 
oppositions and in testing conditions.

"Imran (Nazir), Yousuf (Youhana), Abdur Razzaq, Azhar (Mahmood), 
Arshad (Khan) are relatively new to international cricket. But they 
played like experienced professionals.

"I believe the key to Pakistan's success was the form of Inzamam-
ul-Haq who played a role which Miandad used to play during his 
heyday. He carried the innings on his shoulders and rest of the 
players revolved around him," he said.

He added that the presence of Javed Miandad as coach was an added 
bonus. "Things which Javed Miandad can tell, very few could. His 
presence was a great influence for the players."

Moin and Miandad, nevertheless, admitted that still a lot of work 
has to be done. "There are areas which we have to improve, like 
fielding, batting with heads down and curtail the extras we 

The two agreed that too much cricket was being played by the 
Pakistan cricket team but said previous commitments have to be 
honoured. "Preferably, the players like rest between the series' 
and minimum travelling. But these tours were finalized long time 

Defends action: Reid says everyone knows who is guilty

KARACHI, July 13: New Zealand's match referee John Reid says that 
he doesn't regret penalizing Waqar Younis, Azhar Mahmood for ball 
tampering and reprimanding skipper Moin Khan.

In an interview to website  
http://www.go4cricket.com , Reid said: "I'm a match referee, 
it's my job. I am not on holidays and the whole incident has to be 
looked at that way.

"I gave him and his captain Moin Khan a warning. But then he did it 
again, so I had to suspend him for a game and fine him 50 per cent 
of his match fees. Also, I saw Azhar Mahmood indulge in tampering 
and fined him 30 per cent of his match earnings. Moin Khan, being 
the captain, was heavily reprimanded."

Reid was quoted as saying that he acted in accordance with Laws 
42.4 and 5 of the ICC Laws and Codes 1 and 2 of the ICC Code of 
Conduct. Code 1 puts the blame on the captain since he is in charge 
of all that his team does on the field and Code 2 deals with 
bringing the game into disrepute.

While Reid refused to accept the arguments of the Pakistan Cricket 
Board (PCB) chairman Lt Gen Tauqir Zia that he didn't follow the 

"According to the rules, the umpires, chief executives, managers of 
teams and the match referee can all bring up the issue. And the 
match referee has a right to act independently. There is nothing in 
the rulebook about the umpire reporting the incident or such like," 
he was quoted as saying.

He refused to comment on PCB chairman's allegation that he was 
biased towards Pakistan. But he said: "Why should I react to those 
comments. I am not the guilty party - everybody knows who is."

Waqar to be fined for bringing country's name into disrepute

KARACHI, July 13: The chairman of the Pakistan Cricket Board (PCB) 
Lt Gen Tauqir Zia slammed the activity of Waqar Younis on the ball 
and hinted that more disciplinary action will be taken against him.

"At a time when there is already suspicion on Pakistan cricketers 
over match-fixing and ball tampering, Waqar Younis' action was 
highly irresponsible and added fuel to the fire.

"The PCB will definitely seek an explanation from him and there is 
a possibility that he might have to face some disciplinary action," 
the general said.

Waqar was banned for one match after New Zealand's match referee 
John Reid found him guilty of tampering with the ball in the tri-
nation series match against South Africa.

Waqar didn't return with the Pakistan cricket team on Thursday and 
instead proceeded to Australia.

"It is the interpretation of the match referee as to what exactly 
he was doing. But as far as we are concerned, the decision is harsh 
and bypasses all the laws of the game."

The general argued that ball tampering can't be done to a new ball 
which incidentally had been changed in the same over. He added that 
even if the match referee felt that the ball has been doctored, the 
law says that it has been to replaced within three deliveries. 
Thirdly, he continued, if Waqar was interfering with the ball, a 
stiffer punishment should have been imposed.

"Waqar's performance in the tournament shows that he has taken more 
wickets with the new ball. In addition to this, if the umpires 
don't agree to ball tampering, how can he be found guilty.

"I mean, all these procedures were not followed which forced us to 
believe that the decision was biased."

But the general continued with his anger saying that Waqar was such 
a senior player that he should have avoided actions which could 
lead to speculation.

"There were cameras all over the place which were focusing him 
after the Kandy Test.

"He has already been punished for an offence. But we may now 
penalize him for bringing the team and the country into disrepute. 
I didn't discuss the matter with him in Colombo but now we are back 
and this matter will be tackled here.

"I will ask him exactly what he was doing. Some may say he was 
tampering, others may claim he was removing the dirt. In any case, 
his action is in a bad taste and could have been avoided."

Skipper Moin Khan claimed that Waqar was a victim of circumstances 
and stressed that John Reid had not issued a warning before 
reprimanding him for not handling his players properly.

"The match referee neither indicated to me about Waqar nor he told 
me to control the players. But all of a sudden, he imposed fine and 
suspension on Waqar and reprimanded me. It's surprising to me," he 

Zia dismissed claims that the ICC was a toothless body after 
showing inconsistencies in its recent decisions.

"It is a strong body but the problem is that there is different 
interpretation of the laws. In the case of Shoaib Akhtar, some of 
the 10-man panel thought he was chucking while the others observed 
he was not.

"But I do believe that its (ICC's) procedures are not correct. 
Shoaib is immediately banned by ICC but Brett Lee is not for the 
same offence. The report against Shoaib is released immediately but 
when it comes to Lee, the ICC keeps the report for four months 
before releasing it."

Asian Jr squash championship: Ong Beng Hee beats Mansoor in final

KARACHI July 8: World junior title holder Ong Beng Hee, the top 
seed, became the first Malaysian ever to become the new Asian 
squash champion when he defeated Pakistan's seventh seeded Mansoor 
Zaman by three games to two in Hong Kong on Saturday.

Currently ranked world no 34 Ong Beng Hee overcame the challenge of 
world number 57 Mansoor Zaman 9-5, 4-9, 9-6, 3-9, 9-5 in the final.

This is the second time that Pakistan had lost the Asian title when 
Abdul Fahim from Hong Kong emerged winner of the 1992 championship 
held in Peshawar.

In Friday's semi-finals, left-handed Mansoor Zaman, the son of 
fromer British Open champion who is the Pakistan team manager in 
Hong Kong, inflicted a surprising defeat at second seeded world no 
45 Kenneth Low 9-7, 9-7, 9-2.

Pakistan's fourth seeded world number 60 Shamsul Islam snatched a 
game before Ong Beng Hee triumphed 9-6, 5-9, 9-5, 10-9.

The title was vacant as holder Zarak Jahan's entry from the 
individual event was suspended by the Pakistan Squash Federation 
following his misbahaviour on the last day of the national trials 
held in Karachi for selection of Pakistan team for the Asian 
Championship. Zarak finished fifth and was out of the four-member 

The team event begins tomorrow (Sunday) and participating teams 
will play two matches-morning and evening sessions. Team title 
holders Pakistan, placed in Pool B of the 15-nation tournament, 
play their first match against Singapore in the morning session and 
the second against Kuwait in the evening session.

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