------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 22 July 2000 Issue : 06/28 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from Pakistan's largest English language newspaper, the daily DAWN. DWS offers news, analysis and features of particular interest to the Pakistani Community on the Internet. Extracts, not exceeding 50 lines, can be used provided that this entire header is included at the beginning of each extract. We encourage comments & suggestions. We can be reached at: e-mail dws-owner@dawn.com WWW http://dawn.com/ fax +92(21) 568-3188 & 568-3801 mail DAWN Group of Newspapers Haroon House, Karachi 74200, Pakistan Please send all Editorials and Letters to the Editor at letters@dawn.com (c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 2000 DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS

CONTENTS ===================================================================
NATIONAL NEWS + Pakistan reserves Nuclear option if attacked + G8 urges India, Pakistan to resume talks + EU may review ties with Pakistan in September + Chief Executive okays plan for promotion of tourism + Cells against terrorism being set up + Japan to lift sanctions after CTBT signing + Assemblies not to be restored + RAW behind train blast, says Moin + Judgment in Helicopter Case on Saturday + Nawaz sceptical about country's future + Kuwait grants "Most Favoured Nation" status to Pakistan + Kalabagh dam only after consensus + Farooq gets 14-year RI in octroi case --------------------------------- BUSINESS & ECONOMY + Dollar fluctuates as rupee floats free + Imports to cost more as forex band lifted + PTV to start 100 cable TV channels soon + Haj expenses up by 9%: New policy announced + Cash, bank balance top hidden assets + Tax Amnesty Scheme: Karachi tops by paying Rs3.2 billion + Saudi firm files $70m damages suit against Pakistan + Musharraf defers farm tax recovery + CBR restructuring plan okayed + Advisors to get huge success fee: + ECC urged to waive off duty + IMF options: Stand-by credit on the cards: analysts + KSE 100-share index falls by 9.17 points --------------------------------------- EDITORIALS & FEATURES + The sole statesman-5 Ardeshir Cowasjee + The (further) closing of the Pakistani mind Ayaz Amir ----------- SPORTS + Cricketers to sign ICC code of conduct + Tauqir Zia doubts Indian team's tour will take place + Official named to probe players' assets + PHF accounts audit to begin soon: Aziz

Pakistan reserves Nuclear option if attacked

BERLIN, July 20: Pakistan would consider using nuclear weapons 
first if attacked by conventional forces, secretary foreign affairs 
Inamul Haque said on Thursday.

"There is no way Pakistan can hold out any assurance that it will 
not use any nuclear weapons if its existence is threatened," said 
Inamul Haque, who is on a visit to Germany since Pakistan conducted 
nuclear tests in 1998.

"There is no such assurance on the part of India either," he said 
during a breakfast briefing for journalists. India has said it is 
committed to a no-first nuclear use policy.
Mr Inamul Haque added that NATO maintained a first-use threat to 
deter a Soviet attack during the Cold War. At the time, NATO 
worried about the possibility of an overwhelming conventional 
ground attack on western Europe.

Speaking to journalists before a meeting with his German 
counterpart Wolfgang Ischinger, he defended Pakistan's development 
of nuclear weapons.
"India, we believe, is a hegemonic power," he said. "Our nuclear 
programme has been a response to our security threat 
perceptions....Nuclear weapons are weapons of deterrence."

ISOLATION: Mr Inamul Haque said the military takeover was a 
necessary reaction to what he called deposed prime minister 
Sharif's efforts to build a dictatorship in the country, but added 
the military leaders would restore democracy by 2002. In the 
meantime they needed outside financial help, he said.

"Major economic assistance to Pakistan has dried up," he said. "The 
reserves of the government are $1.5 billion. This is not a very 
large figure."

The European Union condemned the military coup in October and 
suspended a new cooperation pact in protest.

"We need to re-engage with the members of the European Union, both 
individually and as the European Union," he said.

Germany has given $3.7 billion in direct aid to Pakistan since 

REACTION: In New Delhi an external affairs ministry spokesman 
shrugged off as "nothing new" Pakistan's warning that it could use 
nuclear weapons if it was attacked.-Reuters

G8 urges India, Pakistan to resume talks

NAGO, July 21: The Group of Eight urged Pakistan and India on 
Friday to reopen their dialogue as soon as possible, saying their 
prolonged enmity was threatening the international community.

"We call on both India and Pakistan to join international efforts 
to strengthen the non-proliferation and disarmament regime," the G8 
leaders said in a statement.

"The level of tension between India and Pakistan remains a cause of 
international concern," the statement said. "We call on the two 
countries to resume dialogue as soon as possible."

In the statement, the eight - Britain, Canada, France, Germany, 
Italy, Japan, Russia and the United States - also called on the two 
nations to sign and ratify the Comprehensive Test Ban Treaty.

ARMS CONTROL: The leaders of Russia and the United States 
also agreed to expand their arms control efforts amid an escalating 
dispute over US plans to deploy a national missile defense system.

Russian President Vladimir Putin and US President Bill Clinton met 
on the sidelines of a Group of Eight meeting in southern Japan's 
Okinawa island and said the two countries were "dedicated to 
searching for new ways of cooperation to control the spread of 
missiles and missile technology."

Russia and the United States "are prepared to renew and expand 
their cooperation in the area of theatre missile defences, and 
consider the possibility of involving other states," the statement 

Theatre missiles refer to short and medium-range missiles, not the 
long-range weapons targeted in a US scheme for national missile 
defence (NMD) which is strongly opposed by Russia for fear of a new 
arms race.

The two countries also reaffimed their commitment to the Treaty on 
the Non-Proliferation of Nuclear Weapons and the early 
implementation of the Comprehensive Nuclear Test Ban Treaty.

The statement comes amid strong Russian pressure on Clinton to 
decide against a recommendation to be announced later this year on 
whether to deploy an anti-missile defense shield Moscow says would 
violate the 1972 Anti-Ballistic Missile (ABM) treaty and trigger a 
new global arms race.

Washington argues the proposed system would provide limited defense 
against possible attack from what it calls nations of concern such 
as North Korea.

Russian Foreign Minister Igor Ivanov said Putin also briefed 
Clinton on his visit to North Korea this week, in which leader Kim 
Jong-il offered to abandon his missile program in return for access 
to foreign space rocket technology.

An administration official said Clinton gleaned a "clearer idea of 
what President Putin has in mind in this regard," and that it was 
something "we would be prepared to pursue".

Moscow is intent on convincing Washington that Pyongyang does not 
pose a significant enough threat to go through with the NMD, which 
Putin and Chinese President Jiang Zemin have condemned as risking a 
new arms race.

The botched US test of an interceptor key to its NMD plan has also 
bolstered opposition to the shield, which Russia and China believe 
will give the United States a fundamental advantage over other 
nuclear powers.

DEMONSTRATIONS: On Friday demonstrators from across Asia protested 
the summit here and the continuing presence of US bases in the 
Japanese island of Okinawa.

Some 350 participants marched three kilometres towards the venue of 
the summit in sizzling weather, carrying banners which read: "Stop 
the G8 Summit. Don't allow rich countries' egoism." The march was, 
however, halted by dozens of police - 10kms away from the venue.-

EU may review ties with Pakistan in September
Shadaba Islam

BRUSSELS, July 18: Pakistan, worried about stagnating relations 
with the European Union, is pressing the 15 nation bloc to resume 
normal bilateral economic and diplomatic ties, including efforts to 
kick start a political dialogue suspended after last October's 
military takeover.

"Pakistan and the EU must re-engage with each other," said Inamul 
Haque, Pakistan's Federal Secretary for Foreign Relations following 
meetings with senior Belgian and EU officials and members of the 
European Parliament.

"We must talk to each other to resolve our problems," Haque said, 
adding that the EU's decision to downgrade relations with the 
military government in Islamabad by reducing aid (except to social 
sector projects) and suspending the signature of a new trade and 
economic treaty was hurting Pakistan's economy.

The EU should see that the direction of the present government in 
Pakistan is right and should resume financial and economic 
assistance, the Foreign Secretary added.

Resuming aid only in two years once elections are held could be 
"too late" for Pakistan's economic well being, he cautioned. But EU 
insiders say Pakistan faces an uphill struggle in seeking closer 
relations with the bloc. "We do not like military regimes," the 
EU's "high representative" for common foreign and security policy 
told this correspondent last week.

"Relations cannot be the same with democratic countries as they are 
with governments that are the product of a military coup," Solana 

However, the Union is determined to maintain all channels of 
communication open with Islamabad, convinced that isolating 
Pakistan is not in Europe's interest.

Chief Executive okays plan for promotion of tourism
Bureau Report

ISLAMABAD, July 18: Chief Executive Gen Pervez Musharraf approved 
on Tuesday a plan for promotion of tourism. It envisages a major 
policy shift from seasonal to year-round tourism.

Presiding over a meeting here, he stressed the need for developing 
infrastructure and better marketing strategy to promote tourism.

He called for continuity in policies and focus on the core 
objective of promoting tourism.

The chief executive directed the minister for sports, culture and 
tourism to review the rules and regulations in consultation with 
other ministries in order to ease restrictions faced by tourists 
and improving the quality of tourist-related services.

The ministers for interior, information and communications as well 
as other senior civil and military officers were also present on 
the occasion.

The Tourism and Sports Minister, Derick Cyprian, briefed the chief 
executive about the present state of tourism industry and the ways 
for its promotion.

The tourism secretary, Col (Retd) Samin Jan Babar, gave an overview 
of the tourism. He threw light on the ways to fully realize and 
utilize the natural and cultural wealth possessed by the country to 
increase its popularity as a tourist destination.

Maj-Gen Syed Ali Hamid, the director-general (plans), joint staff 
headquarters briefed the participants on the strategy for tourism 

He gave recommendations for improving and expanding the scope, 
including the promotion of ecological-tourism, adventure-tourism, 
heritage-tourism and urban-tourism.

He also recommended short, medium and long-term plans for improving 
the industry.

Masood Ali Khan, managing director, Pakistan Tourism Development 
Corporation (PTDC) threw light on the role of PTDC in the promotion 
of tourism.

He highlighted the requirement of a modern and efficient management 
information system (MIS) having networking within the PTDC and with 
major tour operators, travel agencies and airlines of the world. He 
also gave a number of recommendations for improving the PTDC 

The chief executive appreciated the efforts of all the concerned in 
analysing the potential for tourism and formulating viable 
strategies for utilising it.

Cells against terrorism being set up
Bureau Report

ISLAMABAD, July 18: The government on Tuesday decided to establish 
anti-terrorism cells in all the provincial capitals to ensure 
better coordination between the provinces and the centre for an 
effective check on sectarianism.

In a meeting presided over by the interior minister Moinuddin 
Haider and attended by provincial home secretaries and inspector 
general of police, the authorities discussed in details the 
measures to curb sectarian anarchy.

According to an official handout, the provincial governments were 
advised to establish anti-terrorism cells to develop linkage 
between the provinces and the federation.

The minister said that quick flow of information, better inter-
provincial coordination and professional expertise was required to 
address the problem.

Mr Haider also called upon the border security forces to restore 
sanctity of the Durand Line to check the movement of terrorist 
elements across the border.

The minister expressed government's firm resolve to restore 
sectarian harmony and curb sectarian related terrorism from the 

The provincial authorities briefed the meeting about the ground 
situation and put forward their suggestions in this connection. The 
DIG CIA Punjab reportedly gave a presentation on achievements of 
the Punjab police in curbing the menace.

The provincial authorities agreed with the centre's proposal of 
holding quarterly meetings to review the situation and chalk out 
future plans in the light of decisions already taken by the 

Japan to lift sanctions after CTBT signing

TOKYO, July 19: A Japanese foreign ministry official reiterated on 
Wednesday the government's policy of not lifting sanctions against 
Pakistan and India unless they sign the Comprehensive Test Ban 
Treaty (CTBT).

Yutaka Iimura, head of the ministry's economic cooperation bureau, 
told the ruling Liberal Democratic Party that signing the CTBT 
remains a condition for resuming development assistance to the two 

Japan's major trading companies have lobbied the LDP to lift the 
sanctions, saying they have lost business in the two countries 
because of the punitive measures, LDP sources said.-dpa

Assemblies not to be restored
Nasir Malick

ISLAMABAD, July 17: The chief executive, Gen Pervez Musharraf, said 
on Monday that he would not restore assemblies but would hold 
general election after reviving the economy.

This he stated during his separate meetings with Jamiat Ulema-i-
Islam (S) president Maulana Samiul Haq, Tehrik-i-Jafria Pakistan 
chief Allama Sajid Naqvi and Baloch national leader Mir Hasal Khan 

The three leaders discussed with the CE restoration of democracy 
and elimination of terrorism from the country, sources said.

Talking to Dawn after his meeting, Maulana Samiul Haq quoted the CE 
as saying every one should be clear that he was here to take the 
country out of the political and economic mess it was currently in.

"General Sahib was also very blunt in telling me that he would not 
revive the assemblies at any cost" as he wanted to revive the 
national economy, bring sanity to politics and root out corruption, 
said the JUI leader.

RAW behind train blast, says Moin
Bureau Report

PESHAWAR, July 17: Interior Minister Moinuddin Haider sees a 
neighbouring country's hand behind the Sunday's train bomb blast in 
Hyderabad in which nine persons were killed and 35 injured.

Speaking at a press conference here on Monday, the minister 
rejected the impression, created by a press report about the 
possibility of any link between the incident and the conviction of 
Muttahida Qaumi Movement (MQM) leader Dr Farooq Sattar in an octroi 
case, Mr Haider said: "Enemy hit with the right timing."

"If you look at the bomb blasts occurred in the recent past, in the 
border towns, including Lahore, Narowal, Sialkot and Mirpur, which 
were all done by RAW," said the minister. He claimed that three of 
the culprits, arrested by the law enforcement agencies, had 
confessed their crime.

During the course of investigations, they disclosed the details and 
the place of the training given to them by RAW for subversive acts, 
the minister said, adding "we see clear hand of RAW behind the 
fresh wave of bomb blasts."

He said it was not only Pakistan that was confronted with the bomb 
blasts; the whole region, including Afghanistan, and Sri Lanka, 
were also facing the same situation.

EXTRADITION OF WANTED PERSONS: The minister claimed that the United 
States and Afghanistan had given assurances to extradite the wanted 

In this connection, he said, a list of 14 persons had been provided 
to the US, UK and Afghanistan. These countries had given positive 

A US justice department official, the minister said, would arrive 
Islamabad on Aug 7 to study the judicial requirements for 
extradition of the wanted persons.

Judgment in Helicopter Case on Saturday
Rafaqat Ali

ATTOCK, July 19: The accountability court at Attock on Wednesday 
concluded hearing of the helicopter case, involving deposed prime 
minister Nawaz Sharif and Saifur Rehman, and announced that 
judgment would be passed on July 22.

Nawaz Sharif, who had boycotted the proceedings on the ground that 
he did not recognize the validity of the NAB law promulgated by a 

He, however, made a statement at the end of the proceedings, 
alleging that cases against him were being instituted out of 

Saifur Rehman, the other accused in the case, pleaded his case in 
person and beseeched the judge that he should be acquitted. At one 
stage Mian Nawaz Sharif had to pull back Saifur Rehman from the 
rostrum, imploring for his acquittal.

The proceedings of the case which started at 10am in court 
established in 16th century Attock Fort, 103 kilometres north west 
of Islamabad, continued till 6.15pm, with a break of one hour.

Explaining the prosecution case, deputy prosecutor general Raja 
Mohammad Bashir stated in August 1993, Nawaz Sharif, main accused 
in the case, got imported one MI-8 helicopter from Moscow on wet 
lease for 60 days at the rate of US$550 per flying hour.

In October 1993, he purchased the said copter in consideration of 
$8,00,000. He contended that from July 1993 to June 1997 Nawaz 
Sharif spent $13,77,000 and Rs88,00,000 on the wet lease, purchase, 
maintenance and operation of the helicopter.

He stated that Mohammad Nawaz Sharif, possessed pecuniary resources 
disproportionate to his known and declared sources of income, and 
thus had committed an offence punishable under section 10 read with 
section 9(a)(v) of the NAB ordinance.

The accountability court can award punishment up to 14 years 
imprisonment, including disqualification from being elected or 
nominated for any post for 21 years. The court is also empowered to 
impose any amount of fine.

Charge on Saifur Rehman is that he managed the purchase of 
helicopter for Nawaz Sharif from the Special Cargo Airlines and 
dishonestly made it appear that the said aircraft was purchased by 
Abdur Rehman Bin Nasir Al Thani of Qatar.

The deputy prosecutor general accountability (DPGA) stated that 
Saifur Rehman assisted, aided and abetted the main accused Nawaz 
Sharif in the commission of offence. Saifur Rehman dishonestly 
manipulated the execution of the contract of purchase of the 
helicopter in a manner that Nawaz Sharif acquired illegal pecuniary 
advantages, he contended.

The DPGA contended that on the basis of evidence recorded by the 
prosecution witnesses, the case stood proved. He said that Sartaj 
Aziz, former general secretary of the PML had deposed before the 
court that the PML had paid Rs6,15,000 as operational cost of the 
helicopter which was used by the party in its election campaign.

He said the helicopter was used for over 400 hours, including 100 
hours in the election campaign, incurred expenses which were much 
more than Sartaj Aziz had stated (Rs6,15,000).

The DPGA said that the helicopter was first obtained on the wet 
lease from Russian at the rate of $550 per hour. He said that 
operational cost will come if 400 hours flying was multiplied with 
$550 per hour.

He said that all the payments, except Rs6,15,000 were made by Mian 
Nawaz Sharif.

Nawaz sceptical about country's future
Bureau Report

ATTOCK, July 19: Former prime minister Nawaz Sharif said on 
Wednesday he was "disappointed" with the future of Pakistan. In a 
statement before the Accountability Court, Mr Sharif said: "I am 
utterly disappointed with Pakistan's future. God forbid, we are 
heading for disaster."

"Is this the way to reward a prime minister who made the defence of 
the country impregnable?"

Mr Sharif said: "I am being persecuted because I refused to accept 
demands of the generals". He said that that when he was taken out 
of the prime minister's house at gunpoint on October 12, the 
generals had come to him after nine hours.

He said: "The generals who remained with me till 4am, wanted me to 
sign a plain piece of paper and, in return, offered a number of 
concessions. Attempts to break me will not succeed. I am standing 
where I was on October 12."

Mr Sharif said the members of the judiciary, for whom he had great 
respect, were being used by the military government against him. He 
said the NAB ordinance was Sharif family-specific." The NAB does 
not stand for National Accountability Bureau, rather it stands for 
Nawaz accountability bureau (NAB)".

He said that his family had been targeted and the whole operation 
smacked of vengeance. A few persons from other political parties 
were also arrested to give an impression that accountability drive 
was across the board. "It is not across the board and my family, my 
colleagues are being targeted," he added.

Mr Sharif asked the Judge not to proceed with the case under the 
law which had been promulgated by a single man. "Your conscience 
must be pricking you but you are under pressure," he added.

Kuwait grants "Most Favoured Nation" status to Pakistan
Bureau Report

ISLAMABAD, July 19: Kuwait has declared Pakistan as the "most 
favoured nation" in respect of oil supplies, a spokesman of the 
Ministry of Petroleum and Natural Resources said here on Wednesday.

Oil Minister of Kuwait Sheikh Saud Al Sabah on Wednesday called on 
the Minister for Petroleum and Natural Resources Usman Aminuddin 
and apprised him of his government's decision to grant Pakistan the 
"most favoured nation" status.

In the talks between petroleum ministers of two countries mutually 
acceptable arrangements were agreed upon between the two sides. 
Kuwait will be sending a delegation to Pakistan in August or 
September to consider the possibility of their participation in the 
privatization of the oil and gas sector of the country.

In respect of participation in the white oil pipeline project, the 
oil minister of Kuwait will take up the proposal for consideration 
in the Supreme Petroleum Council chaired by their deputy prime 
minister. Pakistani petroleum minister thanked his Kuwaiti 
counterpart, for this kind gesture towards Pakistan, which will 
further strengthen the existing bonds of fraternity between the two 
countries, the spokesman said.

The petroleum minister also thanked Kuwait for relief goods to the 
drought hit people of Sindh and Balochistan.

MESSAGE: The federal minister also called on the ruler of Kuwait Al 
Sheikh Ahmed Al Sabah and handed him the letter of the Chief 
Executive General Pervez Musharraf, Radio Kuwait reported.

Kalabagh dam only after consensus
Ihtashamul Haque

ISLAMABAD, July 19: The cabinet on Wednesday discussed the 
construction of proposed Kalabagh dam and decided to develop a 
consensus, specially by taking Sindh into confidence, on the issue.

It approved the Haj Policy for 2001, amendment to the Federal 
Public Service Commission Ordinance, 1977, and amendments to the 
Securities and Exchange Ordinance, 1969.

Chief Executive Gen Pervez Musharraf told the cabinet that his 
government did not plan to take any "unilateral decision" to build 
the Kalabagh dam and that a broad consensus would be achieved 
before opting for the project, according to official sources.

He stated that all apprehensions of Sindh would be removed and 
added that some people in the NWFP were also opposing the project 
who, too, were being told that the proposed dam was the only option 
to end the acute water shortage.

The cabinet endorsed the CE's initiative to create awareness for 
the construction of Kalabagh and other dams.

He warned of a serious water crisis if people continued to oppose 
the construction of new water reservoirs. Recently, he said, he had 
met a number of people in Karachi and told them that they should 
support the plan to have more dams, including the Kalabagh dam.

The CE, sources said, regretted that during the last 53 years, only 
a couple of dams could be constructed. He cited the example of 
Turkey which had built 44 dams in 40 years.

He specifically said that the future of Sindh was linked to the 
construction of Kalabagh dam and that it should be started without 
any wastage of time to save huge farmlands.

He stressed the need for enhancement of water resources and their 
equitable distribution among the provinces. He said that for a 
productive and prosperous future and to cater to the irrigation 
requirements there was a need to increase the water storage 
capacity. This, he said, could primarily be done by building 
reservoirs and barrages because the existing reservoirs cannot meet 
the demand due to silting, etc.

Smaller provinces, particularly Sindh, would be major beneficiaries 
of new storage capacities. Therefore, he said, there was a need to 
proceed with consensus on a priority.

The cabinet approved the arrangements to be made by the ministry of 
religious affairs for Haj in 2001.

Science and Technology Minister Dr Attaur Rehman briefed the 
cabinet on his recent visits to various countries. The visits were 
aimed at promotion of the Information Technology sector in Pakistan 
and export of software.

The cabinet was told that a number of new projects and programmes 
had been initiated. New overseas investment in Pakistan has been 
secured and additional commitments have been obtained in the IT 

It approved amendment to the FPSC Ordinance, 1977, to ensure its 
autonomy, strengthen its independence, increase its composition to 
achieve a broad-based character, and to authorize it to determine 
transfers and promotions.

The cabinet also approved amendments to the Securities and Exchange 
Ordinance, 1969. The amendments have become necessary for 
strengthening the securities' market through improved governance, 
regulating and supervising orderly growth of companies and for 
restoring investors' confidence.

Farooq gets 14-year RI in octroi case
Rafaqat Ali

ATTOCK, July 15: The accountability court here on Saturday 
sentenced former Sindh minister Dr Farooq Sattar to 14-year 
rigorous imprisonment and disqualified him for 21 years for 
becoming public representative after convicting him in the KMC 
octroi reference filed by NAB.

Announcing the first judgment of the court established in the 16th 
century Attock Fort at 5.05pm, Judge Farrukh Latif directed the MQM 
leader to pay Rs50 million fine.

Dr Sattar, who was also mayor of Karachi, termed the verdict 
"mockery of justice" and said he would challenge it in the high 

Under the law, he can file an appeal in the Lahore High Court, and 
has 10 days to do so.

In the 28-paged judgment, the judge observed that corruption had 
become the order of the day and was spreading in society like an 
epidemic. "There is growing impression that act of corruption can 
be conveniently indulged with impunity. This impression has to be 
dispelled by timely and stern administration of law by imposing 
severe and exemplary punishment upon the culprits."

Copies of the judgment could not be provided to the press as the 
photocopier of the court was out of order.

Dr Sattar would have to undergo an additional three-year 
imprisonment if he failed to pay the fine. The co-accused, Anzar 
Zaidi, former administrator of the Karachi Metropolitan 
Corporation, was also awarded 10-year RI and ordered to pay Rs5 
million fine. In case he failed to pay the money, he would have to 
spend three more years in the prison.

Dr Sattar was accused of misusing his official position for 
awarding the contract to the Bolan Enterprises for the collection 
of rail/road route octroi for 1997-98. Port Qasim was later 
included in the agreement in violation of the government policy.

The prosecution had alleged that the whole process of awarding the 
contract was completed in one day and the matter was not taken 
before the auction committee. The court was informed that the 
calculated loss in the contract was Rs34 million.

The punishment was awarded under Section 10(9) of the National 
Accountability Bureau Ordinance, 1999. The order was announced in 
presence of the accused.

Court registrar Raja Shafiq said that the two convicts had been 
provided the certified copy of the judgment.

Dr Sattar had taken the plea that the matter was not in his 
knowledge and when it came to his notice, as minister he tried to 
rectify it. He was asked 45 questions by the court which put 35 
queries to the co-accused.

In his statement, Dr Sattar had said that no incriminating evidence 
had been brought against him and therefore, the reference was not 
competent and could not form the subject matter of any criminal 
trial. He stated that he failed to understand why the case was 
instituted, adding that he had strong feelings that the basis of 
the case were his political affiliations.

He had stated that he had tried to find out why, how and on what 
pretext the M/s Bolan Enterprises was collecting octri at the 
Bhains (cattle) Colony on the goods coming from the Port Qasim. He 
was informed, he stated, that the situation arose due to sudden 

Dollar fluctuates as rupee floats free
Sabihuddin Ghausi

KARACHI, July 21: Volatility and wild fluctuations marked the 
dollar trading on Friday, both in the inter-bank market and in the 
kerb, a day after the State Bank (SBP) allowed free float of 
Pakistani rupee and stopped the practice of unofficial advice to 
banks to operate within a prescribed exchange band.

In the inter-bank trading, the dollar touched the peak of Rs53 on 
Friday but settled down at Rs52.75. On Thursday afternoon, when the 
SBP took the crucial decision of withdrawing unofficial cap, the 
dollar had closed at Rs52.30.

A corresponding volatility was also seen in the kerb market where, 
according to the money-changers, the dollar went upto Rs55.80 on 
Friday but later settled down at Rs55.40 at the end of the day.

"I see stablization in dollar at Rs53.50 in inter-bank and Rs55.50 
to Rs56 in the kerb", Owais Kalia said.

"We feel that the central bank's move will lead to a soft 
devaluation of around two to three per cent as the banks will try 
to get the available liquidity for the importers' requirements" an 
analyst in the ABN daily brief observed on Friday.

The market analysts foresee another day of hectic trading on 
Saturday which may continue on Monday. However, most of them are of 
the view that the possibility of central bank's intervention cannot 
be ruled out in the future as and when the rupee-dollar parity 
stretches beyond a certain limit. "This fear may prove to be a 
deterrent in over-playing by any of the players in the currency 
trading game", a senior banker observed.

According to the bankers, although the central bank has withdrawn 
its unofficial intervention in the currency trading it still 
maintains a close monitoring system of the money market and has at 
its disposal many options to exercise.

With the Indian rupee plunging by 2.5 per cent and the Chinese yuan 
by 20 per cent, Mr Kalia is of the view that the downward 
adjustments made in the rupee value in recent past did not match 
and there is no option but to bring it down to a level where 
Pakistani exporters could feel comfortable.

Interestingly, both Finance Minister Shaukat Aziz and the SBP 
Governor Dr Ishrat Hussain have been ruling out any possibility of 
downward adjustment in the rupee value. "By withdrawing its 
unofficial intervention power, the central bank has absolved itself 
of the consequences that could follow from the sliding of rupee, 
which is now imminent, and at the same time has responded to the 
IMF condtionality of free float of rupee and the mounting demand of 
6 per cent devaluation by the powerful textile lobby", a banker 

With this 'devaluation', the bankers are confident that the 
exporters, mostly of textile products, will bring back their $700 
million which they had retained outside the country. Just before 
the presentation of the 2000-2001 budget, the State Bank governor 
had been cautioning all such exporters to sent back home their 
export proceeds or face tough action. "The government and the 
central bank have now finally reconciled to the fact that it is not 
the stick but the carrot that works", a textile exporter remarked.

Another reason for this devaluation is to tempt the overseas 
Pakistanis to remit their earnings through banking channels instead 
of sending them through hundis. Remittances had dropped to the 
lowest level, below $1 billion in 1999-2000 despite all the 
incentives offered to the banks for improving their efficiency and 
ensuring quick delivery.

How far an appreciation of greenback value in the inter-bank 
trading will tempt the overseas Pakistani to use banking channels 
in the future is still a question that remains unanswered simply 
because there is a corresponding rise in dollar value in the kerb 

"There is a difference of 5 per cent in the kerb rate and the 
inter-bank trading and it is a comfortable margin to operate" Mr 
Kalia, a leading money changer, said.

"With the removal of trading band, the volume in the inter bank 
trading will improve and will thus lead to an improvement in the 
profitability of the major players" writes ABN Ambro analyst in its 
daily brief report on Pakistan on Friday. Textile sector is 
expected to be the biggest gainer of this decision.

Imports to cost more as forex band lifted
Parvaiz Ishfaq Rana

KARACHI, July 20: Imports will be more expensive during the current 
fiscal after the lifting of unofficial band on inter- banking 
currency dealings by the State Bank of Pakistan (SBP) and the 
importers will have to buy dollars from the open market to foot 
their bills.

"The central bank move appears to limit imports in a bid to cut the 
increasing trade deficit, which now stands at $1.6 billion," a 
banker said.

There was, however, no immediate impact on the dollar in kerb as it 
stood unchanged at the previous level of Rs 54.93 and 54.98 a 
dollar. But towards closing hours demands raised to Rs 55.10.

"We do expect some panic buying from importers on Friday, which may 
push the greenback higher, but still SBP may not allow the rupee to 
drift down from certain level," a senior banker said.

Responding to a question, he said, "surely we feel that the central 
bank will not allow unbridled fluctuations in the rupee and may 
also intervene to maintain some control over its parity vis-a-vis 

Bankers also feel that the rupee may only lose another 40 to 50 
paisa in the open market on Friday, because it had been already 
devalued in kerb trading after easing of the band to Rs 52.10/52.30 
rupees by the SPB on June 22.

For the last few weeks the dollar was stable in unofficial inter-
bank dealings at Rs 51.80 to Rs 52.30.

The State Bank is reported to have quietly advised currency dealers 
to keep the rupee/dollar parity within limits of 53/54 rupees to a 
dollar, a banker told Dawn. "We have been hinted that if this was 
not maintained the SBP will not hesitate in moving back to 
controlled exchange rate," he added.

Nevertheless, the State Bank decision to end exchange rate band 
will help increase exports which will become more competitive in 
the world market, particularly in European Union (EU) where euro 
had been under pressure against US dollar.

PTV to start 100 cable TV channels soon
Syed Irfan Raza

ISLAMABAD, July 20: Pakistan Television will shortly provide 
facility of cable TV channels throughout the country under which 
more than 100 TV channels of different countries can be seen, Dawn 
learnt on Tuesday.

The Pakistan Telecommunication Authority (PTA) has issued a licence 
to PTV for starting a cable TV under Section 5(2)(0) of the 
Pakistan Telecommunication (Reorganisation) Act, 1996, and Rule 3 
of the Cable Television Operation Rules, 2000, framed under Section 
57(1) of the Act.

It is the first time that the PTV will itself provide the cable TV 
facility as before this the facility was being provided by the 
private sector.

Initially some 100 channels would be available on the PTV network 
but the number of channels would be increased gradually, a senior 
official of the PTA said.

The following channels would be available on the PTV network:

PTV, STN, Abu Dahabi, Ajman TV, Al-Jazeera TV, Australian TV, 
Bahrain TV, Bayrak International, BBC World, CCTV-7, CNBC Asia, CNN 
International, Neutsche Welle TV, Dubai TV, ESC-Egypt, Future 
International, International Sports, Iraq Channel, Iran 1-4, Jordan 
TV, JSC-Al Jazeera Sat, LBC, MBC, MTV, Music Asia, Nile 
Entertainment, Nile Family, Nile News, Oman TV, Pakistan Channel, 
PTV-3, PTV World, PTV-2, Saudi TV-2, Saudi TV- 1, Sharjah TV, SI 
TV, Sony Entertainment, Sony Sat Max, Syria TV, Viva Music, Vox, 
Worldnet, Zee TV, Alpha Punjabi, ART Children, ART Europe, ART 
Moscow, ART Movies, ART Variety, ART-Iqra, ANT World, AXN Action 
TV, BBC Prime, Bloomberg TV UK, BRT (Baynder TV), Channel [V] Asia, 
Channel [V] International, Cine Cinemas, Fox News Channel, Fox 
Sports, Fujian TV, Future TV, Global TV, Golden Futu, Hallmark, 
HBO, HBO Family, HBO4 Kids, History Channel, InfoSport, ITV, Kermit 
Channel, Kids TV, Series Channel, Sat Max, Sky Cinema, Sky Gold, 
Sky Movies, Star Movies, Star Plus, Star Sports, Sun Movies, Super 
Sports, Super Sports Gold, TCM/Carton Network, Cinemax, CMT, CNBC 
Sports, Computer Channel, Digitaly, Discovery Channel, Discovery 
Health, Discovery Sci- Trek, Discovery Travel, Dubai Business 
Channel, Dubai Space Channel, Dubai Sports Channel, Elefante TV, 
Emirates Media, Encyclopaedia, ESPN, ETC, Euro News, Europe By 
Satellite, Euro Sports, Formula 1, Fox Kids, Kuwait Space TV, 
Lashkara TV, LBC Sat, MCM Africa, MCV, M-Net, Mosaic, Movie Magic, 
MTV Asia, MTV Europe, MTV International, National Geographic 
Channel, NBC, News Sports, Nickelodian Show Time, ORT Kazakhstan, 
Paramount Channel, Parliamentary Channel, Quranic Channel, Reuters 
TV, SABC 1, SABC Africa, Sentech Info, Test Car, The Disney 
Channel, TMMC, Travel Channel, TV 5 Europe, TV Africa Med, TV 5 
Afrique, UK Granada TV, University 1-4, University of Plymouth, VH-
1, Viva Cinema, WWW Travel TV, Zee English, Zee Movies, and Zee 

PTV has acquired category A and paid a licence fee of Rs5 million 
to the PTA for telecasting these channels throughout the country. 
The licence would be valid for five years.

PTV has so far not decided about charges for per cable connection 
but it would not be more than the charges being charged by private 
firms operating cable channels in various parts of the country.

Haj expenses up by 9%: New policy announced
Ansar Abbasi

ISLAMABAD, July 19: The government on Wednesday announced the Haj 
policy for 2001, allowing 105,000 Pakistanis to perform Haj next 
year and increasing the expenses by almost 9 per cent.

The expenses have been raised in consequence of 5pc increase in PIA 
fares and because of the enhancement of personal exchange quota of 
each pilgrim from $1,100 to $1,200.

Briefing newsmen on the salient features of the new policy, 
approved by the cabinet earlier in the morning, Religious Affairs 
Minister Dr Abdul Malik Kasi said the cabinet had allowed the fare 
increase to partially compensate the PIA which had suffered a loss 
of Rs155 million during the last Haj operation.

He said the air fare from Karachi and other cities would be 
Rs21,000 and Rs24,675, respectively. Total dues for Haj 2001 would 
be Rs86,800 from Karachi as against Rs79,112 during the Haj 2000, 
and Rs90,528 from other stations as against the previous Rs82,665.

The cabinet, he said, had allowed 105,000 Pakistanis to perform Haj 
next year; of which 35,000 would go under the Regular Scheme and 
the rest under the Sponsorship Scheme.

The accommodation for all the pilgrims would be arranged by the 
government. The Saudi government had asked Pakistan to make 
accommodation arrangements for all of its pilgrims in Makkah and 
Madina during the next Haj.

All the pilgrims would have to perform Haj in groups and they would 
not be allowed to hire private accommodation as was the practice in 
the past.

The Haj applications would be invited from Aug 2. The last date for 
receipt of these applications by banks would be Aug 22 under the 
Regular Scheme, and Aug 31st for the Sponsorship Scheme.

Duration of stay of pilgrims has been extended from 35 to 40 days, 
and the personal exchange quota has also been increased from $1,100 
to $1,200.

The minister announced that there was no increase in the 
accommodation rent in both the holy cities. Efforts would be made 
to acquire accommodation in Makkah and Madina at the maximum limit 
of Saudi Riyal 1,600 and SR200, respectively, he said.

To keep the process of accommodation hiring foolproof, the minister 
said, two committees - one each in Makkah and Madina - were 
constituted under the Pakistan ambassador to Saudi Arabia.

Welfare staff, including 250 Khuddamul Hujjaj, a 250-member medical 
mission, 250-man seasonal staff and 25 staff members of banks, will 
be sent to Saudi Arabia to look after the Pakistani pilgrims.

Mr Kasi said the government would make special efforts to educate 
the prospective pilgrims and added that an orientation programme 
would be launched through radio and television. Special bracelets, 
carrying the name and passport number of each pilgrim with a mini-
flag of Pakistan, had been designed, besides making abaya or scarf 
compulsory for every woman pilgrim.

The minister said the government was trying to persuade the Saudi 
Airlines to carry its 50 per cent share of Pakistani pilgrims to 
avoid inconvenience.

Cash, bank balance top hidden assets
Parvaiz Ishfaq Rana

KARACHI, July 15: Among the concealed assets declared for whitening 
under Tax Amnesty Scheme 2000 (TAS 2000), in the Southern Region of 
Income Tax, liquid cash and balances held in banks topped the list 
as an amount of Rs11.800 billion has found its way into the 
documented economy, official sources disclosed.

Against this, declaration of jewelry and bullion stood only better 
than that of shares which are at the bottom, in terms of value. 
Jewelry and bullion valuing Rs731 million and shares worth Rs524 
million are declared for whitening under TAS 2000, sources said.

Jewelry/bullion valuing Rs665 million have been declared by 
individuals, Rs45 million worth by registered firms and costing 
Rs20 by AOP. While equities of around Rs518 million have been 
declared by individuals, of Rs3.6 million by registered firms, of 
Rs1.5 million by unregistered firms and of Rs0.5 million by AOP.

The second highest to follow are 10,087 buildings having a value of 
around Rs8 billion have been declared by individuals, firms and 
association of persons (AOP), by June 30, 2000. Out of these 9,973 
buildings having a value of Rs7.851 billion have been regularized 
by individuals, 15 by registered firms, two by unregistered firms 
and 97 by association of persons.

The regularization of open plots of varying sizes attained third 
position in terms of fetching high amount in revenue at 10 per cent 
tax. In total 10,495 plots having a value of Rs8.800 billion have 
been declared under the TAS-2000. As many as 10,427 individuals 
benefited from the amnesty on paying 10 per cent tax for 
regularizing their open plots of different sizes having a value of 
Rs6.750 billion. 

 Similarly, 50 plots belonging to association of persons having a 
value of Rs39 million have been declared, 15 plots owned by 
registered firms and three by unregistered firms with a value of 
Rs12 million and Rs6 million respectively, have been declared.

*From amongst all the five tax regions of the country, Southern 
Region have fetched highest tax amount of Rs3.800 billion (at the 
rate of 10 per cent) on whitening of concealed assets/wealth 
(movable and immovable) having a total value of Rs38 billion. Out 
of these, movable assets/wealth worth Rs23.400 billion and 
immovable assets/wealth of a value of Rs14.600 billion have found 
its way into the documented economy of the country, sources said.

But the most interesting feature of the amnesty scheme is that as 
many as 3,352 vehicles having a declared value of Rs2.179 billion 
have been regularized by their owners in the Southern Region of 
Income Tax which have its jurisdiction up to Quetta, Sukkur, 
Hyderabad. As a result of this revenue collection through 
regularization of vehicles attained fifth position.

Despite the fact that different saving instruments worth over Rs550 
billion are presently afloat under National Saving Schemes (NSS), 
but a meager amount have been declared and whitened under the 
amnesty scheme.

In total certificates, bonds and other saving instruments of 
Rs2.224 billion have been declared. This gives the NSS fourth 
position in term of declared value among other assets/wealth. NSS 
worth Rs2 billion have been declared by individuals, by registered 
firms Rs16 million and by AOP Rs131 million.

Industrial plants and machinery worth Rs1.498 found its way into 
the regular economy through TAS-2000, thereby gives them seventh 
position in term of declared value.  Out of this plant and 
machinery worth Rs1.346 billion have been declared by individuals, 
by registered firms Rs108 million, by unregistered firms Rs12 
million and by AOP Rs31 million.

Tax Amnesty Scheme: Karachi tops by paying Rs3.2 billion
Parvaiz Ishfaq Rana

KARACHI, July 19: Among the four cities which fall in the 
jurisdiction of Southern Region of Income Tax, the highest number 
of declarations made under Tax Amnesty Scheme 2000 (TAS- 2000) have 
been received from the city of Karachi, official sources disclosed.

Sources said that in total 79,411 declarations have been received 
from the four cities - Karachi, Hyderabad, Sukkur and Quetta 
bringing in revenue of around Rs3.8 billion at 10 per cent tax for 
whitening concealed assets and wealth under TAS-2000.

According to official figures a total of 28,041 declarations have 
been filed by the Karachiites under the Amnesty Scheme, delivering 
a sum of Rs3.2 billion in 10 per cent tax for whitening the 
assets/wealth of around Rs32 billion value.

The city of Hyderabad ranked second where 2,425 declarations have 
been filed giving revenue an impact of Rs137 million, followed by 
Sukkur with 1,098 declarations and revenue collection of Rs77 
million, and Quetta 1,614 declarations contributing about Rs158 
million to government coffers.

Among individuals who made highest declarations was from Karachi 
topping the list for whitening assets/wealth worth Rs89 million 
thus paid Rs8.9 million in tax at 10 per cent. Sources said that he 
declared Rs82 million in cash and other assets worth Rs7 million.

Another one from the city of Hyderabad stood second on declaring 
assets/wealth worth Rs81 million bringing in revenue of Rs8.1 
million. According to classification of assets, he declared Rs80 
million in cash and other assets worth Rs1.3 million.

But it is interesting to note that two ladies are sharing the third 
position on whitening their concealed assets/wealth of equal value. 
Each lady has declared assets worth Rs66 million which gave revenue 
affect to a tune of Rs6.6 million from each. The more fascinating 
feature is that each one of them (ladies) have whitened cash of 
Rs66 million. They also belong to city of Karachi.

Similarly, the city of Karachi also topped in declarations made 
from those areas which are not under survey. In total 4,310 
declarations have been filed under TAS-2000. Official figures 
further disclose that such areas like Nazimabad, Liaquatabad, 
Federal 'B' Areas, North Nazimabad and North Karachi, New Karachi, 
Soldier Bazar, Lawrence Road, Garden (West), Karachi generated 
Rs440 million in revenue at 10 per cent tax.

Areas not under survey in cities of Larkana and Nawabshah stood 
second and third in term of number of declarations and revenue 
collection. From Larkana 544 declarations have been received and 
from Nawabshah 531 declaration bringing in revenue of Rs59 and Rs65 
million, respectively.

Meanwhile, from amongst the survey areas Jodia Bazar, M.A. Jinnah 
Road, SITE, topped the list for whitening of concealed 
assets/wealth. In total 6,500 declarations received bringing in tax 
amount of Rs756 million.

Defence Housing Authority and Clifton areas ranked second on filing 
of 5,500 declarations under TAS-2000 and yielding tax revenue to a 
tune of Rs736 million followed by Gulshan-e- Iqbal, Gulistan-e-
Jouhar, and PECHS from where 5,350 declarations were received along 
with tax of Rs629 million. Survey areas of city of Hyderabad, filed 
2,425 declarations giving revenue affect to a tune of Rs137 million 
followed by Quetta and Sukkur on 1,614 and 1098 declarations, 

Saudi firm files $70m damages suit against Pakistan
Ansar Abbasi

ISLAMABAD, July 20: A Saudi-based mega concern has filed in the 
International Chamber of Arbitration Paris a suit for $70 million 
damages against Pakistan for the government's alleged failure to 
implement an agreement signed with it four years back.

Dalla Group, operating in different business spheres in various 
countries, has filed the suit on account of Pakistan's failure to 
construct a Haj complex in Makkah. However, Pakistan is refusing to 
defend the case and waiting for an ex parte decision, sources told 

The Group was awarded a $225 million contract to build the complex 
to accommodate almost 35,000 Pakistani pilgrims during Haj seasons.

The project was envisaged during Benazir Bhutto's second term in 
office. An MoU was signed between the group and the government in 
1995. The formal agreement was signed in 1996.

The then government set up Awami Haj Trust, under an ordinance, 
which signed the agreement with the Group. The trust was 
represented, among others, by secretaries of religious affairs and 
finance, and deputy chairman of the planning commission.

It was agreed that the complex would be completed in three years 
and the Group would be paid Saudi Riyal 1300 a pilgrim in 1995, and 
thereafter there would be a 2.5 per cent escalation on this amount 
every year.

It was also agreed that the government would not pay this amount, 
rather the payment would be made to the Group from the receipts of 
the overseas Pakistanis applying for Haj under the Sponsorship 
Scheme. This way the entire cost of the project was expected to 
have been paid within 15 years.

But with the dismissal of the Benazir government the project 
aroused suspicions of the following rulers. The Group, too, got 
slow in implementing the agreement and, thus, the ordinance 
promulgated to set up the Awami Haj Trust was allowed by the 
government to lapse.

Consequently, the agreement was not recognized by the new 
government which took the stance that the complex was a deal 
between the Group and the Trust.

The Group approached the Nawaz Sharif government but the project 
was never revived forcing the Group to file the suit in the 
International Chamber of Arbitration, Paris (ICAP).

The suit was filed during the dying days of the PML government. 
Notices were issued to the government by the ICAP to decide the 
question of jurisdiction. But officials in the law ministry advised 
the government not to file any reply to these notices and contended 
that the government was not a party to the agreement. The case was 
ultimately dumped in files though some lawyer associated with the 
Walkan Martino Salim & Co had been hired simply to observe the 
proceedings of the case from the behind the scene.

Musharraf defers farm tax recovery
Saleem Shahid

QUETTA, July 20: The Chief Executive, Gen Pervez Musharraf, has 
announced a relief package for the farmers of Balochistan by 
restoring the old flat rate of electricity and postponing the 
recovery of agriculture income tax for one year.

He made this announcement at a reception at Khanozai, 60 kilometres 
off here, on Thursday.
Gen Musharraf said it had also been decided to extend the date for 
recovery of power dues from the farmers till October.

He said the flat rate of power had been increased from Rs4,000 to 
Rs6,000 a month at a meeting held recently in Islamabad in view of 
the financial problems being faced by the Wapda. However, he added 
that the decision was being withheld for Balochistan farmers due to 
serious drought conditions in the province and now they would have 
to pay only Rs4,000.

Gen Musharraf said the actual cost of the electricity, being 
consumed by the tubewells, came at Rs12,000. The chief executive 
said the federal government would provide a subsidy of Rs4,000 on 
power rates to the growers and the remaining amount of Rs4,000 
would be borne by the provincial government.

"It is the responsibility of the people to pay all their dues and 
taxes so that the government could increase its revenue for 
spending on the development of the country and welfare of the 
people," Gen Musharraf said.

He added that if the people would not pay the electricity dues then 
where from the money would come for building power stations, 
installing transmission lines and other development projects in the 

The chief executive assured the growers that the flat rate would 
not be increased and the farm tax would not be collected from them 
for one year. However, Gen Musharraf said, the government could not 
extend such relief for ever as it also needed money for the 
development of the country and welfare of the people.

The chief executive said his government was making all out efforts 
to get the country rid of corruption and added that the problem had 
been checked at the higher level; now no one could syphon out the 
national wealth to other countries.

Gen Musharraf said the taxpayers money would be spent on the 
developmental projects.

He said nobody would be allowed to plunder the national resources 
and those who had looted the national exchequer in the past would 
be punished as many corruption cases were under trial in the 
accountability courts.

The chief executive said that the federal government was making all 
possible efforts to bring Balochistan at par with other developed 
areas of the country. The centre, he added, had provided much more 
funds to the province then its share and this process would 
continue till the drought condition persisted in the province.

He said that the federal government had provided Rs1 billion for 
the relief work in the affected areas of the province and an 
additional amount of Rs1.5 billion would be released soon. He said 
the civil and military authorities were jointly working in the 
drought-hit areas for the relief and rehabilitation of the affected 

Gen Musharraf said his government had launched the poverty 
alleviation programme all over the country. In this connection, he 
added, Rs35 billion had been allocated. He said it would create job 
opportunities and bring prosperity to the people.

CBR restructuring plan okayed

ISLAMABAD, July 18: Chief Executive Gen Musharraf has okayed a 
short and long term plan for restructuring plan of the Central 
Board of Revenue (CBR) to make it efficient and corruption-free.

Talking to Dawn Tuesday, Shahid Husain, chairman, task force on tax 
administration, said a briefing on plan was given to CE on Monday 
after which the task force was given go head signal.

The short-term plan to be implemented by Dec 31 is aimed at 
improving the efficiency in collecting taxes, boasting the morale 
of the staff, reducing instance of corruption and restoring public 
confidence in the field officials.

 Shahid, a former IBRD senior vice president, said the plan was 
discussed with CE who expressed full support for it. "We want 
wholesale restructuring, and not skimpy amends here and there. We 
would not be keeping anything secret about report. We will make it 
public but it will be based on inputs from all the major sectors of 

For this purpose, he said, contact groups have been created -both 
by public and private sector experts. Separate groups have been 
created for each of the tax head, Customs, Sales Tax, Direct Taxes 
and Central Excise Duty. One group has also been created for 
information management on tax administration.

Giving out briefs on the plan, Shahid said the focus would be on 
salaries of tax collecting officials; removing discretion in 
implementing tax procedures; eliminating contact between the 
taxpayer and tax-collecting officials; automation of the tax 
administration; and, training of tax officials to improve their 

He said salary structure is being reviewed as inadequate salaries 
happen to be one of the major causes for indulging in corrupt 
practices. Recruitment and training structures are also being 
reviewed alongside the disciplines of services in which tax 
officials presently fall.

The elements of arbitrariness and harassment attached to the tax 
administration will be eliminated by taking inputs from taxpayers 
and information management attached with the tax administration, he 

Advisors to get huge success fee 
Ihtashamul Haque

ISLAMABAD, July 17: The Privatization Commission (PC) has changed 
its strategy to disinvest State-Owned Enterprises (SOEs) by 
converting the minor retainership of the financial advisors (FA) 
into huge success fee with a view to kickstart the privatization 
process in Pakistan.

"We have decided not to offer any retainership to the financial 
advisors as it did not help accelerate the privatization process in 
Pakistan. And now a decision has been taken at a higher level that 
financial advisors would be offered handsome success fee to 
drastically achieve the objectives of privatisation", said Altaf M. 
Saleem, the Chairman PC.

Talking to Dawn here on Monday he said that retention fee at 
present was being offered to FAs was much lower to attract them for 
completing any transaction. "But the success fee will be much 
higher to complete the whole programme according the new 
timeframe", he added.

Asked about the new timeframe set by the military government to 
disinvest public enterprises, Altaf M. Saleem said that the issue 
has been left to the financial advisors who were finalizing their 
respective transactions for an early process.

For example, he said that the Oil and Gas Development Corporation 
Limited (OGDCL) transaction will be completed in 18 months period 
once its financial advisor, Merril lynch has worked out all the 
related details. He disclosed that the government has given its go-
ahead signal to the PC to disinvest and transfer the OGDCL 
management to a private buyer as quick as possible. Investors from 
nine countries were interested in buying the OGDCL which has the 
financial worth of over one billion dollars. He said $8-10 million 
was likely to be offered to the FA as a success fee for OGDCL 

Similarly, he said that 12 to 40 per cent government's shareholding 
in various oilfields was being put up for sale for which a number 
of international companies have been contacted to become financial 
advisor. Jardine Flaming, he said, was one of the companies with 
which talks were currently being held.

"Our LPG transaction is almost ready and now it is a question of 
inviting bids for this purpose very soon", he said. A number of 
companies like PSO, Sui Southern and Sui Northern have their LPG 
plants at various locations which will be put up for sale.

Responding to a question he said that a number of reputed 
international companies including Shell, Total, SHV of Netherlands 
were ready to take part in the privatisation of LPG plants.

Talking about the Pakistan Telecommunication Company Limited (PTCL) 
Saleem said that three major international companies from Saudi 
Arabia, Egypt and Australia have shown their keen interest to buy 
the company. The PTCL's Financial Advisor, Goldman Sacks have been 
met by these three companies in London recently to discuss the 

"Now there would not be any delay in the privatization of PTCL", he 
assured adding that the transfer of management to a buyer of only 
18 per cent shares will not be possible as was decided by the Nawaz 
government. "A Saudi investor is interested to buy 50 pert cent 
shares of the PTCL but we have not decided to offer him transfer of 
management in case he is the highest bidder", he said adding that 
"let the market forces decides the issue and that we have no fixed 
idea about it".

Then the privatization of National Investment Trust (NIT) will be 
ready during the first quarter of next year as it has improved its 
balance sheet and overcome some of the problems. He said M/s Arthur 
Anderson have been appointed its financial advisor who would be 
here on 26 of this month to further finalize the issue. A high-
level committee comprising Secretary General Ministry of Finance, 
Chairman Securities and Exchange Commission of Pakistan (SECP), 
Managing Director of the NIT, and Chairman Privatization Commission 
were the members of a committee which was supervising the 
privatization of the NIT, he said.

ECC urged to waive off duty

ISLAMABAD, July 17: The agriculture ministry has urged the Economic 
Coordination Committee (ECC) to waive off Rs107m accumulated as 
duty/demurrage on imported 180 tractors lying at Karachi port since 

The tractors were imported under Bhutto government's awami scheme 
and total 796 farmers had deposited Rs56m as an advance money with 

Sources said, request has been made after the refusal by the port 
officials to waive off the duty/demurrage charges saying the port 
could not afford to write off such a large amount without affecting 
its sustainibility.

Agriculture ministry in its summary has reiterated that 
accumulation of demurrage charges on 180 tractors is due to 
inconsistent policy decisions that led to lengthy litigation for no 
fault of importers.

The ministry said, 796 farmers who booked tractors with importer 
after payment of advance deposits of Rs55.70m have been suffering 
since '96 due to the non delivery. They were promised to deliver 
tractors @Rs 325,000 per unit. The ministry said inclusion of port 
charges would make tractors' price Rs 930,000 per unit which will 
be beyond their reach. Local tractor with similarly feature is 
available for @ 312,000. The ministry added that the marketing of 
held up tractors which are still in PKD conditions and involve 
extra refurbishing charges will not be possible unless entire 
accumulated KPT's charges are waived off.

Earlier, the ECC while considering the summary on "non-delivery of 
tractors" had decided that agriculture ministry should prepare a 
workable proposal in consultation with the port authorities as well 
as importers for release of held up 180 tractors for safeguarding 
interests of the affected farmers. In view of that, a meeting was 
called recently with officials of the KPT and importers to work out 
a solution.

The meeting was told that accumulation of demurrage was due to un-
necessary litigation for no fault of importers. Considering the 
prevailing market price of local tractor (50 horse power), it was 
felt that the tractors will not be competitive price-wise unless 
entire demurrage charges were waived off.

The port representative said the consignment had been lying since 
'96 and the accumulated charges thereon have been calculated at Rs 
107m which are increasing @ Rs 84000 per day. As per rule, he said, 
the KPT board is not empowered to exempt these charges. It was 
stated that KPT being self financing organization cannot afford 
towrite off such a large amount without affecting its 

IMF options: Stand-by credit on the cards: analysts
By Our Staff Reporter

KARACHI, July 15: Though the nature and quantum of IMF funding is 
not yet known, financial analysts say that "an emergency stand-by 
arrangement (SBA) may be on the cards for Pakistan."

Experts say there are two possible financing options from the IMF; 
one is resumption of ESAF/EFF or the renamed PRFG and the other is 
an emergency SBA.

Analysts at Taurus Securities Ltd are of the view that SBA may be 
considered due to political constraints attached to the option for 
EASF/EFF. The G-7 countries may use the EASF/EFF as a bait to 
resolve the political issues. At the same time, concern over 
isolating a strategically important country could have led to the 
conception of stand-by arrangement.

The SBA would be relatively on more expensive terms and repayments 
on this count would exacerbate the situation requiring debt 
rescheduling by Paris Club. Under the arrangement, financing is 
made available for eighteen months and repayment is made over a 
four- year period.

Financial analysts said, this facility could provide some breathing 
space into the tight debt servicing program and help meet 
obligations for the current year. It would be a positive sign for 
the foreign commercial banks and investors.

Sources close to the international lending agencies indicate that 
the IMF funding and debt rescheduling by Paris Club would form two 
major aspects of an overall package if approved by the Fund Board.

The approval will depend upon and follow the program that the IMF 
team, due in August, is expected to evolve and Pakistan's 
commitment to execute the stated policies, programs without any 
major deviation.

Though not indicated, the funding program is expected to be of a 
similar size, about $1.2bn, as the previous one that was scuttled 
after one tranche. Sources said at this point of time, there are 
positive indicators for Pakistan. IMF officials see the budget 
2000-01 generally in line with the IMF policies except for minor 

The tax collection target of Rs435bn set for current fiscal is 
seen more creditable in the light of government efforts to boost 
revenues than last year's target in the then prevailing 

The IMF officials are however expected to look at the pace of 
execution of government's policies before committing any funds, 
that, according to sources, is unlikely to be forthcoming before 
October this year.

KSE 100-share index falls by 9.17 points

KARACHI, July 21: The recent upward drive on the stock market 
slightly slowed down as jobbers and day traders indulged in profit-
selling at the higher levels but the underlying sentiment remained 
uppishly inclined. The KSE 100-share index reacted by 9.17 points 
at 1,616.74.

A considerable decline in the trading volume from the overnight 
peak level of 302m shares to only 131m shares reflects that 
investors are not inclined to part with the holdings amid 
predictions of a sustained bull-run.

The developing scenario on the corporate front indicates that the 
market is in a for grand technical rebound and investors including 
financial institutions and foreign funds are not inclined to miss 
the rising market at least at this stage.

The weekend profit-selling coming from the jobbers and day traders 
at the inflated levels imparts strength to the market rather than 
halting its upward journey. There was nothing to suggest that the 
market's upward climb is overdone as was reflected by the presence 
of strong support at the dips.

The KSE 100-share index fell 9.17 points at 1,616.74 as compared to 
1,625.71 a day earlier, reflecting the weakness of leading shares 
including PTCL on selling prompted after the news of resignation of 
its chairman.

The weakness of the rupee after the lifting of unofficial band in 
inter-bank dollar dealings by the central bank on Thursday evening 
did influence the stock trading, triggering selling from some of 
the foreign funds, said a member of the KSE.

"It is a virtual devaluation of the rupee by 45 paisa at Rs52.75 
from Rs52.30 and could well prove a double-edged weapon for stock 
trading", he added.

The export could receive the needed boost through a cheaper rupee 
but will make imports notably industrial raw materials more 
expensive and will add to production costs of exportable goods, 
said a broker.

Jobbers and short-term dealers who have been following the market's 
run-up and were not inclined to hold on long positions owing to two 
closures ahead took profits at the available margins in most of the 
leading stocks.

"I don't think bears could now push the market lower according to 
their whims", stock analysts at the KASB & Co say adding, "the 
positive reports from the Hubco front have altogether changed the 
share business outlook".

Minus signs dominated the list but most of the losses were 
fractional and reflected the absence of leading sellers rather than 
any other adverse factor.

However, some of the leading shares attracted selling at the higher 
levels under the lead of Fauji Fertiliser, BOC Pakistan, General 
Tyre, Al-Ghazi Tractors, Pakistan Tobacco, Crescent Bank and Ishaq 
Textiles, falling by one rupee to Rs 2.40.

But the largest decline of Rs3.50,4.50, and 21.85 was noted in 
Jahangir Siddiqui, Trust Bank and Lever Brothers Pakistan 

Some of the leading shares managed to post fresh gains under the 
lead of Adamjee Insurance, Millat Tractors, Tri-Pack Films, 
Jahangir Siddiqui Investment Bank, and Gulistan Textiles, which 
rose by Rs1.05 to 4.50.

Trading volume from the recent peak level of 302m shares to only 
134m shares as investors were not inclined to sell amid predictions 
of an imminent price flare-up aided by positive news from the Hubco 
front. Losers held a strong lead over the gainers at 106 to 65, 
with 48 shares holding on to the last level.

Hubco again topped the list of most actives followed by reports 
that the WAPDA has paid to it Rs1.6bn against its refund of sales 
tax, up 20 paisa at Rs18.30 on 47m shares, PTCL off 25 paisa at 
Rs28.70 on 27m shares, ICI Pakistan, easy 10 paisa at Rs16.30 on 
18m shares, PSO, up 20 paisa at Rs174.60 on 16m shares and Sui 
Northern, lower five paisa at Rs16.10 on 3m shares.

Other actives were led by Dhan Fibre, lower 20 paisa on 2m shares, 
Dewan Salman, off 95 paisa also on 2m shares, Nishat Mills, up 50 
paisa on 1.634m shares, Lucky Cement, higher 25 paisa on 1.579m 
shares, KESC, off 20 paisa on 1.495m shares.

DEFAULTER COMPANIES: Shares of seven companies came in for trading 
on this counter but physical business remained light. Service 
Fabrics was the volume leader, unchanged at Rs0.65 on 2,000 shares 
followed by Crescent Spinning also unchanged at Rs3.35 on 1,000 
shares and Khurshid Spinning, lower five paisa also on 1,000 
shares. Market at a glance

TONE: steady, total listed 762, actives 219, inactives 543, plus 
65, minus 106, unc 48.

KSE 100-SHARE INDEX: previous 1,625.71, today's 1,616.74, minus 
9.17 points.

TOP TEN: gainers Gulistan Textiles Rs4.50, Jahangir Siddiqui Bank 
1.65, Tri-Pack Films 1.40, Adamjee Insurance 1.05, Millat Tractors 

LOSERS: Lever Brothers Rs21.85, Colgate Pakistan 5.00, Trust Bank 
4.50, Jahangir Siddiqui & Co 3.35, Shell Pakistan 2.40.

TOTAL VOLUME: 131.373m shares.

VOLUME LEADERS: Hub-Power 47.238m, PTCL 27.068m, ICI Pakistan 
17.881m, PSO 15.452m, Sui Northern 2.457m shares.

Back to the top
The sole statesman-5
Ardeshir Cowasjee

"NEVER was there a nature whose outer qualities provided so 
complete an antithesis of its inner worth. Tall and stately, but 
thin to the point of emaciation, languid and luxurious of habit, 
Mohammed Ali Jinnah's attenuated form is the deceptive sheath of a 
spirit of exceptional vitality and endurance.

"Somewhat formal and fastidious, and a little aloof and imperious 
of manner, the calm hauteur of his accustomed reserve but masks for 
those who know him a naive and eager humanity, an intuition quick 
and tender as a woman's, a humour gay and winning as a child's. 
Pre-eminently rational and practical, discreet and dispassionate in 
his estimate and acceptance of life, the obvious sanity and 
serenity of his worldly wisdom effectually disguise a shy and 
splendid idealism which is of the very essence of the man."

So wrote the Indian Congresswoman and poet, Mrs Sarojini Naidu, 
after meeting Jinnah for the first time at the 1906 annual session 
of Congress held at Calcutta.

Now to what Mohammed Ali Jinnah had to say on the future 
constitution of Pakistan in his broadcast to the American people in 
February 1948 : "The constitution of Pakistan has yet to be framed 
by the Pakistan Constituent Assembly. I do not know what the 
ultimate shape of this constitution is going to be, but I am sure 
that it will be of a democratic type, embodying the essential 
principles of Islam.

"Today, they are as applicable in actual life as they were 1,300 
years ago. Islam and its idealism have taught us democracy. Islam 
has taught the equality of men, justice and fairplay to everybody. 
We are the inheritors of these glorious traditions and are fully 
alive to our responsibilities and obligations as framers of the 
future constitution of Pakistan. In any case, Pakistan is not going 
to be a theocratic state to be ruled by priests with a divine 
mission. We have many non-Muslims - Hindus, Christians and Parsis - 
but they are all Pakistanis. They will enjoy the same rights and 
privileges as any other citizens and will play their rightful part 
in the affairs of Pakistan. "

There is more than enough on record to prove beyond reasonable 
doubt that Jinnah intended Pakistan to be a democratic, forward-
looking, modern, secular state. The bigots and the uneducated will 
always preach otherwise - and it will remain their privilege to so 

On July 25, 1977, I was asked by the general who had just removed 
Bhutto and taken over the country, "Mr Kawaasjy, what can you do in 
70 days to improve the ports and shipping of Pakistan? When I 
enquired why he had specified '70 days' I was told, "I promised the 
people when I took over that I would go back to the barracks in 90 
days time. Twenty of those days' have passed."

He was reminded that history records that it was in the fifth 
century BC that the last dictator-general voluntarily went home. 
Lucius Quinctius Cincinnatus returned happily to his farm having 
successfully led the Roman armies and saved the republic from the 
barbarians. I suggested that he read Basil Henry Liddell Hart on 
the subject of 'Dictators' and later sent him a copy of the 
following extract from Liddell Hart's book 'Why Don't We learn From 
History', published posthumously in 1971:

"On gaining power : they soon begin to rid themselves of their 
chief helpers, 'discovering' that those who brought about the new 
order have suddenly become traitors to it." [ General Pervez 
Musharraf has, so far, not done so.]

"They suppress criticism on one pretext or another and punish 
anyone who mentions facts which, however true, are unfavourable to 
their policy." [Musharraf may not have to follow Liddell Hart's 
pattern if he treads well and wisely. He has so far very correctly 
allowed the press full freedom to publish whatever criticism it may 
wish to print. In fact, when his flip-flop spin doctor, Javed 
Jabbar, addressed a gathering of columnists in Karachi on July 6, 
some complained that whereas the press publishes all they write the 
government does not respond to their criticism. But why should the 
government respond? And whatever it does, it must not even consider 
banning in any form any information or facilities available on the 

"They enlist religion on their side, if possible, or, if its 
leaders are not compliant, foster a new kind of religion 
subservient to their ends. [Zia did it, but Musharraf does not have 
to do so. In fact, he should get rid of some of the reputed fundos 
who are close to him.]

"They spend public money lavishly on material works of a striking 
kind, in compensation for the freedom of spirit and thought of 
which they have robbed the public. [There is nothing to spend. On 
this score we are safe.]

"They manipulate the currency to make the economic position of the 
state appear better than it is in reality." [ So far the currency 
has not been manipulated. ]

"They ultimately make war on some other state as a means of 
diverting attention from internal conditions and allowing 
discontent to explode outward. [The Kashmir 'sizzle' takes care of 
this one.]

"They use the rallying cry of patriotism as a means of riveting the 
chains of their personal authority more firmly on the people. 
[After Benazir and Nawaz, both twice removed, anyone is acceptable 
to the people barring the politicians whose 'hookah-pani band 
hogaya hai'. And besides, was Washington not a general of the army, 
as was Eisenhower? Was Carter not a peanut farmer, and Reagan a 
film actor?]

"They expand the superstructure of the state while undermining its 
foundations - by breeding sycophants at the expense of self-
respecting collaborators, by appealing to the popular taste for the 
grandiose and sensational instead of true values, and by fostering 
a romantic instead of a realistic view, thus ensuring the ultimate 
collapse, under their successors, if not themselves, of what they 
have created. [Unfortunately this country breeds sycophants with 
the greatest of ease. We have 139 million of them. If the general 
surrounds himself with too many they may well be his undoing.]

"This political confidence trick, itself a familiar string of 
tricks, has been repeated all down the ages. Yet it rarely fails to 
take in a fresh generation." [ When each new government takes over 
many of us fervently hope that it will prove Jinnah's old 
prediction to be wrong : 'Each succeeding government of Pakistan 
will be worse that its predecessor.']

Zia not only read the extract carefully, but managed to get hold of 
a copy of the book and ordered that it be reprinted by the Services 
Book Club of Pakistan. The printing took nine years and naturally 
infringed on the copyright laws. The book is a 'must' read for 

The (further) closing of the Pakistani mind
Ayaz Amir

A few evenings ago, driven by a desire that I can now see as 
insane, I happened to flick over to my favourite TV channel, 
Pakistan Television, which, if there be any justice in this world, 
will be compulsory entertainment for every confirmed sinner when he 
arrives at the outer gates of hell.

There I saw a bizarre sight: three high-toned pontiffs - a bishop 
of the cloth, an ex-law professor and someone who looked an 
outright rogue - singing the praises of 'the removal of doubts 
ordinance', a piece of legal gimmickry whereby all the Islamic 
provisions of Pakistan's moribund Constitution have been included 
in the Provisional Constitution Order. Leaving nothing to chance, 
these experts were hammering the point home that this was another 
bold step (every step in Pakistan being a bold one) towards 

I am sure these professors of the airwaves were not the only 
experts hauled up by PTV for special duty on this subject. But 
their enthusiasm was a reminder of how PTV has regularly insulted 
the intelligence, or what there is of it, of the Pakistani people. 
No matter what folly a government (any government) purveys, PTV is 
programmed to hail it as an act of the highest statesmanship. 
Resurrect Hitler from his ashes and provided you bring him to 
Pakistan, PTV will hail him as mankind's saviour. Although it was 
only one programme I happened to watch, that too in passing, I am 
sure the pattern is being repeated and PTV's captive audience, 
helpless in the matter, is being made sick with the hidden virtues 
of this ordinance.

And what is this earth-breaking ordinance about? It takes the 
Islamic provisions of the Constitution - the Objectives Resolution, 
the principles of policy, the other articles which refer to the 
Quran and Sunnah - and makes them part of the PCO. By doing this it 
has earned the plaudits of the many clerical armies in Pakistan 
which somehow succeed in fooling every ruler even though, as every 
blighted election in this land has shown, their sound and fury are 
worse than their bite. In other words, the Islamic provisions have 
been saved as if, without this timely action, they stood in danger 
of being extinguished. By such momentous undertakings is life in 
Pakistan defined. The received wisdom is that the military regime 
has succumbed to the pressure of the clerical brigade. This is far 
from the truth. From the clerical brigade noises were being made 
about protecting the Islamic provisions of the Constitution. But 
there was no pressure, if by pressure something tangible or real is 
meant, which could deflect the military regime from its chosen 
path. There was only a chorus of ill-trained voices raising the 
bogey of Islam in danger. Against such a threat there was no need 
to be clever. Or even to be brave. The religious lobby has always 
sought to draw attention to its existence, and its nuisance value, 
by such tactics. It is for governments to read such situations 
correctly. If they cannot, and if they see danger or opportunity 
where none exists, who is to blame?

The clerical armies are of course crowing with delight but why 
should they not when they see a tough-sounding military government, 
the commando motif written all over it, retreating twice in quick 
succession? First over the anti-blasphemy law, now over this false 
play of shadows on a distant wall. What will become of the liberati 
who were pinning such hopes on what they fondly believed was a 
Kemalist revolution?

In referring to 'the removal of doubts' ordinance I was not 
inventing anything. The language of the ordinance contains this 
gem: "The Provisional Constitution (Amendment) Order, 2000, has 
been deemed necessary for removal of doubts and to reaffirm the 
continuity and enforcement of the Islamic provisions contained in 
Constitution of the Islamic Republic of Pakistan. It is considered 
expedient in the public interest to remove all such doubts." What 
does this reveal, a guilty conscience or an over-clever attitude? 
What doubts and in whose minds? Certainly not in the minds of the 
people of Pakistan who, if they have reacted at all to this sorry 
business, have done so with a weary yawn.

What if this ordinance had not been issued? Was there, in that 
case, a lurking threat of paganism creeping into the suspended 
articles of the 1973 Constitution? Was there any danger that once 
democracy was restored - a distant prospect, given the experiments 
General Naqvi seems intent on carrying out in its name - the 
Islamic provisions of the Constitution would disappear? Whence the 
fear that without timely action Pakistan stood in danger of being 
declared a secular state? The Pakistani clergy can stand anything: 
the ignorance and poverty of the people, the country's involvement 
in dubious foreign adventures, the country's entrapment in 
humiliation at the hands of outsiders. The nation's iron begging 
bowl moves it not. But show it the rag of secularism and all hell 
breaks loose.

At the heart of our collective existence resides a strange 
contradiction. On the one hand, corruption and a readiness to break 
every rule in the book. On the other, a positive mania for Islamic 
affirmation. It is not enough to pass the Objectives Resolution. It 
must also be included in the constitution. Official stationary must 
be inscribed with the kalima. The framework of government may be on 
the verge of collapse but every pretence at work must begin with a 
recitation from the Holy Quran. We'll do nothing to improve PIA but 
before every flight an appropriate prayer must be recited. This is 
not piety. This is not even hypocrisy for hypocrisy is a conscious 
act meant to fool others. This is plain self-deception. Unable to 
fight the real world on its terms, we seek refuge in a moral 
superiority and a higher sanctity which are figments of our 

Islam is not a fragile vessel although to hear the good and great 
of Pakistan talk it seems as if Islam stands in need of constant 
protection. In the subcontinent it has been around for a thousand 
years and, like other religions, will remain till the end of time. 
Its existence and safety can never be in doubt. What is in doubt is 
our ability to create a polity in line with the injunctions of 

What does Islam command? What does it stand for? The creation of a 
polity, in the here and now, based upon justice and egalitarianism, 
freedom from fear, freedom from want and hunger, tolerance towards 
all. In an Islamic state a dog must not go hungry even by the banks 
of a faraway river. This cry of the Caliph Omar (one which I can 
never stop quoting) is the true essence of the faith rather than 
empty ritual, meaningless gestures or doctors of the faith 
splitting hairs on television.

In the whole of the Islamic canon there is no denunciation more 
severe than that directed at the Pharisee, the self-righteous 
person who has pretensions to superior sanctity. Since independence 
we have done nothing so much as to turn this into a nation of 
Pharisees. Listen to our words and look at our actions. A 
profounder gulf between two separate notions could not be drawn.

If we cannot create a state based upon justice and fair play a 
hundred Objectives Resolutions will avail us nothing. If the poor 
live in misery and want, if there is one law for the powerful and 
another for the weak, what does it matter if we call Pakistan an 
Islamic or a secular republic? The form of things is important but 
not as important as their substance.

Cricketers to sign ICC code of conduct

LAHORE, July 18: All the Pakistani cricketers will sign Code of 
Conduct, formulated by the International Cricket Council before 
participating in the Tri-nation tournament to be held in Singapore 
next month.

Pakistan, South Africa and New Zealand will compete in the 

The Pakistan Cricket Board director Yawar Saeed told journalists on 
Tuesday that the board was facing problem of non-availability of 
various cricketers due to their assignments abroad and it would 
take some time to get the Performa signed by the players. He hoped 
that the job would be done before the departure of the Pakistan 
team to Singapore on August 20.

Tauqir Zia doubts Indian team's tour will take place
Ilyas Beg

LAHORE,July 19: Lt.-Gen. Tauqir Zia has said that Pakistan Cricket 
Board (PCB) would welcome the Indian team next January but 
prospects of the tour looked bleak.

Talking to mediamen at the Qadhafi Stadium on Wednesday morning, 
the PCB ad hoc committee chairman said that he had asked the Board 
of Control for Cricket in India (BCCI) officials during his meeting 
with them in England to send their team on the planned tour.

"Although the BCCI officials agreed to send the team to Pakistan 
early next year yet I do not see the tour taking place", said Gen 

The PCB chairman said that the outgoing International Cricket 
Conference (ICC) chairman from India, Jagmohan Dalmia, and the BCCI 
secretary Mr Lele had given a firm assurance that the Indian junior 
team would be sent to participate in the ongoing Asia Cup Under-17 
Cricket Tournament but they have put forward lame excuses for not 
doing the needful. An invitation letter and nine reminders had been 
sent to the BCCI but the response had been disappointing.

Replying to a question, Gen Tauqir said that there was a unanimity 
of views among Pakistani and Indian boards officials on many issues 
at the International Cricket Conference (ICC) meeting and it is 
hoped the co-operation would continue. Gen Tauqir said that during 
a meeting with John Reid, which was held at his request, "I told 
the 71-year-old referee that it was time he took rest rather than 
getting involved in refereeing the international matches. I 
reminded him that he had been removed from captaincy of the New 
Zealand team for his biased remarks against the players of the sub-
continent and it will be advisable that he should not supervise the 
matches which involved the Pakistan team, if at all he is serious 
to continue with his job. I told him that unfortunately he did not 
have requisite knowledge of the rules under which he takes action 
against players" said Gen Tauqir.

Official named to probe players' assets 

KARACHI, July 20: The Pakistan Cricket Board (PCB) has appointed a 
one-man inquiry commission that will probe the assets of the 

Naveed Rasool, a member of the National Accountability Bureau 
(NAB), has been assigned to carry out investigations and report 
back as soon as possible.

Naveed recently resigned as the legal advisor of the PCB.

The chairman of the PCB, Lt Gen Tauqir Zia said Naveed Rasool will 
chalk out his own strategy and will act independently. He said if 
he required some man power, the PCB would provide it. "Being a NAB 
representative, he knows all the procedures. The Pakistan players 
will be instructed to extend full support," he said.

The investigations of the assets are being carried out as per 
recommendation of Justice Malik Mohammad Qayyum. The assets of the 
players will be compared with their total earnings.

The general said Salim Malik and Ata-ur-Rehman, who were banned for 
life on the advice of Justice Qayyum, were delivered with letters. 
He said the two players have been instructed to convey to the board 
if they accepted the decision or plan to challenge the decision.

Similarly, he said the cash penalties imposed on six players would 
be deducted from their match fee. He, however, said the players 
will have the right to challenge the fines in a court of law.

In the meantime, the PCB sent a fresh reminder to the Board of 
Control for Cricket in India (BCCI) to confirm the itinerary of the 
tour of Pakistan.

"Since we have to depart for New Zealand two days after the 
conclusion of the Indian series, we have to confirm our arrival and 
the itinerary to them (New Zealand) immediately," Gen Tauqir said.

The Indian series concludes on Feb 12 and the Pakistan team leaves 
for New Zealand on Feb 14 for three Tests and five one-day 

PHF accounts audit to begin soon: Aziz

ISLAMABAD, July 16: The question of from which year should the 
financial audit of Pakistan Hockey Federation (PHF) start will be 
decided in a couple of days.

This was stated by president PHF, Chief of General Staff, Lt. Gen. 
Mohammad Aziz Khan while talking to reporters here at Wah.

The president PHF said that an internationally reputed audit 
company has been given the task to carry out the financial audit of 
PHF. The audit company will be given a specific time frame to 
complete the report.

It may be added here that huge financial bunglings have been 
reported in PHF finances whose accounts have not been audited.

To a question regarding selection of Pakistan Olympic team, the 
president PHF said that best possible representation has been 
picked up.

After taking over as president PHF on July 5, this was the first 
major decision taken by the new hockey management who are more or 
less relying on status quo in all matters till the Sydney Olympics. 
The president PHF also met the selected team. 

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