------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 15 July 2000 Issue : 06/27 -------------------------------------------------------------------
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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
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20000715 ------------------------------------------------------------------- Pakistan Navy begins Hammerhead exercises ------------------------------------------------------------------- Reporter KARACHI, July 14: Pakistan Navy began its 22nd annual war-game "Hammerhead 2000" at its Tactical School on the PN Dockyard here on Friday. The chief executive, Gen Pervez Musharraf, was chief guest at the opening session. He was briefed on the series of conceptual exercises. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000715 ------------------------------------------------------------------- Minister refutes allegations by US Congressmen ------------------------------------------------------------------- Reporter 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- 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 country. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000715 ------------------------------------------------------------------- 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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000712 ------------------------------------------------------------------- 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 NWFP. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000715 ------------------------------------------------------------------- British MPs not to back India on UN Security Council seat: Sultan ------------------------------------------------------------------- Correspondent 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- 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 annum. 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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- 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 mayor. 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 changed. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000709 ------------------------------------------------------------------- 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 charges. 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 stated. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000709 ------------------------------------------------------------------- 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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000709 ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- 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 exchequer. 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 provincial. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- Sailya calls for traders' strike ------------------------------------------------------------------- Reporter 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 associations. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000710 ------------------------------------------------------------------- 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 gas. 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
=================================================================== BUSINESS & ECONOMY 20000714 ------------------------------------------------------------------- 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 Thursday. 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 declared. "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 newspapers. "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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000712 ------------------------------------------------------------------- Pakistan qualifies for shrimp exports ------------------------------------------------------------------- Reporter KARACHI, July 11: Pakistan has been certified for inclusion in the list of countries qualifying shrimp exports to United States of America. The certification was given under Section 609 of United States Public Law 101-162, Marine Fisheries Department (MFD) said on Tuesday. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000714 ------------------------------------------------------------------- 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 delivery. 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 1. 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.- Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000712 ------------------------------------------------------------------- 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.- APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000714 ------------------------------------------------------------------- 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000712 ------------------------------------------------------------------- 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 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000711 ------------------------------------------------------------------- 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 year. 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 3.85%. 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 billion. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- Food import falls by 33% in 12 months ------------------------------------------------------------------- Correspondent 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%). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000713 ------------------------------------------------------------------- 100% computerized audit of firms to begin in Sept ------------------------------------------------------------------- Correspondent ISLAMABAD, July 12: The Income Tax Department will conduct 100% computerized audit of the companies and registered firms from September. 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 country. 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 taxpayer. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000715 ------------------------------------------------------------------- 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 cargo. 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 stability. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000715 ------------------------------------------------------------------- KSE 100-share index ends lower ------------------------------------------------------------------- Reporter 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 fundamentals. 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 levels. 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 shares. 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
=================================================================== EDITORIALS & FEATURES 20000709 ------------------------------------------------------------------- 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. Mischief? 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 provinces? 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 them. 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 means. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000714 ------------------------------------------------------------------- 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 life? 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 affair). 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 democracy.
=================================================================== SPORTS 20000713 ------------------------------------------------------------------- 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 Lanka. 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 single. 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. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000714 ------------------------------------------------------------------- Captain, coach happy with team's showing ------------------------------------------------------------------- Reporter 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 cake. 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 concede." 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 ago." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000714 ------------------------------------------------------------------- Defends action: Reid says everyone knows who is guilty ------------------------------------------------------------------- Reporter 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 procedures. "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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000714 ------------------------------------------------------------------- Waqar to be fined for bringing country's name into disrepute ------------------------------------------------------------------- Reporter 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 said. 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." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000709 ------------------------------------------------------------------- Asian Jr squash championship: Ong Beng Hee beats Mansoor in final ------------------------------------------------------------------- Reporter 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 team. 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. ------------------------------------------------------------------- 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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