------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 24 June 2000 Issue : 06/24 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + Rs700bn budget outlay for 2000-2001 + Rs 25.61 billion outlay: No new taxes in Balochistan budget + Rs68.28bn Sindh budget presented oGST on services levied + Political activities to remain banned + Gas rates to be increased shortly + Constitution of bench: SHC verdict on Nawaz's petition on 27th + Attock court adjourns hearing + CE opens Ormara naval base: Deterrence level not to be lowered + Amnesty International deplores Indian HR abuses + Pakistan, India urged to resume talks + Writ filed against Nawaz for 'treason' + EU waiting for democracy in Pakistan + ICJ refuses to hear Atlantique case --------------------------------- BUSINESS & ECONOMY + Pakistan seeks cash for F-16s + Major changes in tax system + Govt servants get relief + Defence budget not reduced: Shaukat Aziz + 'No cut in export finance rates' + Survey form: NTN holders get facility + Sindh to net Rs850m farm tax + Privatization programme: Shaukat asks banks to lure investors + World Bank offers $90m for poverty alleviation + SBP allows rupee-slide by 20 paisa on inter-bank market + Shaukat on import of furnace oil: Govt monopoly to go on July 1 + Panjgur power plant starts production --------------------------------------- EDITORIALS & FEATURES + The sole statesman Ardeshir Cowasjee + The other drought Ayaz Amir + Dialogue with Washington Afzaal Mahmood ----------- SPORTS + Razzaq youngest bowler to record Test hat trick + Rashid offers to testify at Cronje hearing
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20000618 ------------------------------------------------------------------- Rs700bn budget outlay for 2000-2001 ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, June 17: Finance Minister Shaukat Aziz on Saturday presented a relief-cum-investment-oriented but modest budget of about Rs700 billion for 2000-2001, managing for the first time in many years a decrease in the allocation for debt servicing, a significant cut in the defence share and at the same time increasing the development budget by over 19 per cent. Describing it as the first part of a three-year (2000-2003) framework, the minister on TV and radio proposed a budget with an overall deficit of 4.6pc (Rs162 billion) of the GDP. He hoped to keep the budgetary deficit well below 5pc of the GDP on the assumption that in the next year the CBR revenues would increase by over 24pc from Rs352 billion to Rs438 billion, and the expenditure would expand by only 2pc from Rs566 billion to around Rs578 billion. In the next three years the finance minister hoped to achieve an annual average growth rate of 6pc, an inflation rate of 4pc, an investment rate of 18pc, budgetary deficit in the final year at 3.2pc, a fall in the current account deficit to half a per cent of the GDP from the present 2.4pc, and an increase in the foreign exchange reserves equivalent of 12 weeks import bill from the present four weeks. He announced abolition of wealth tax from the next year and proposed reduction in the number of other taxes and their rates. To provide relief to the salaried class, the minister proposed reduction of income tax rates to the tune of 80pc for those earning lesser amounts and 5pc for those who are earning higher salaries. A 50pc cut was proposed in the tax on the incomes of researchers and teachers. The minister identified the debt burden as the foremost problem facing the country as the total public debt at the end of this month would go up to Rs3,200 billion of which 56pc was foreign. On the other hand, he said, the tax base was extremely narrow with a tax to GDP ratio of 13pc compared to 18pc in countries at our level of development. The computer training institutes set up between 1997 and 2005 have been exempted from paying income tax. Software exports have been exempted from the minimum income tax rate of half a per cent. The overall expenditure for the next year at Rs698 billion is only about 4.7pc more than the revised budget for the current year at about Rs637.70 billion. If adjusted against the current rate of inflation the size of the new budget in real terms seems to have been kept almost at par with the size of the current budget. The current expenditure for 2000-2001 has been estimated at Rs577.6 billion, showing an increase of 2.2pc over revised estimates of 1999-2000. This would mean that in real terms (adjusted against the current rate of inflation) the size of the current budget next year would be significantly smaller than the size of the revised current budget for the outgoing year. Debt servicing for the next year has been estimated at Rs305.6 billion, indicating a 2.6pc decrease over revised estimates for 1999-2000 of Rs313.7 billion. The domestic debt servicing is estimated to decrease by 4.6pc, foreign debt servicing by 8.9pc and foreign loan repayment would decrease by 5.1pc against the revised estimates of 1999-2000. Defence expenditure in 2000-2001 at Rs133.49 billion has been slashed by almost Rs10 billion but at the same time an expenditure of Rs26.1 billion for military pensions has been transferred to the head of running civil government. As a result, the expenditure under this head at Rs80.2 billion has increased by 67.4pc in 2000- 2001 over the revised budget for 1999-2000. The resource availability for the next year has been estimated at Rs700.2 billion, showing an increase of a modest 9.7pc over the revised estimates for the current year, and net revenue income for the year at Rs412.1 billion also shows an increase of only 9.3pc over the revised estimates for 1999-2000. The capital receipts (net) for 2000-2001, however, show a substantial increase of 25.8pc at Rs78 billion, but on the other hand receipts from external sources are estimated at Rs178.5 billion, showing a decrease of 3.5pc over the budgeted estimates for 1999-2000. The share of provinces from the federal receipts next year would see a whopping increase of almost Rs40 billion at Rs182.48 billion against Rs142.28 billion of revised estimates for the current year. While the report of the pay and pension committee is being awaited, the government servants from grade 1-16 will be allowed to draw one month's salary up to Rs2,000 on the occasion of their religious festivals. The government proposes to cover part of the losses suffered by the victims of Taj Company and the Cooperatives from the funds collected by the NAB from corrupt people. In the next three years, the minister hopes to decelerate the growth of public debt through stringent fiscal policy that attempts to reduce the budget deficit, broaden tax base without burdening people with high incidence of tax, institute a transparent system of expenditure control, significantly increase the share of social sectors' allocations and poverty reduction programs, encourage and facilitate investment in industry, particularly small and medium industry, encourage exports, particularly manufactured and non- traditional, effect savings and reconstruct and revitalize institutes of governance. The second most important area of reforms of the government, according to the finance minister, is the privatization and in this connection a law is being promulgated that would guide the process of privatization. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000620 ------------------------------------------------------------------- Rs 25.61 billion outlay: No new taxes in Balochistan budget ------------------------------------------------------------------- Saleem Shahid QUETTA, June 19: Governor Amirul Mulk Mengal on Monday presented a surplus and tax-free budget of Rs25.613 billion for the financial year 2000-2001 on national hookup. Total revenue receipts are expected to be about Rs26.66 billion out of which Rs17.75 billion have been earmarked for current expenditures and Rs7.85 billion for public sector development programme (PSDP). The figures show a surplus amount of Rs1.05 billion. The provincial government would make internal financing of Rs 3.08 billion during the next financial year. The Poverty Alleviation Programme will continue to be a high priority area with an allocation of two billion rupees. With the financing in PSDP and PAP, the total outlay of the current budget would be Rs22.84 billion. An amount of Rs971 million will be left at the disposal of the provincial government. In his speech, the governor said: "For the first time, the provincial budget has been streamlined on realistic basis and strictly in accordance with the requirements of provincial government departments." He said that the element of over-estimation has been eliminated making room for transparency. He said that the overall size of the budget did not exceed more than 3.5 per cent from that of the previous one in spite of the fact that all the departments had been entertained suitably. Mr Mengal said that in the public sector development programme, provincial contribution would be Rs5.08 billion. He said that Balochistan would get federal government assistance of Rs2.8 billion. An amount of Rs3.08 billion will be spent on provincial social development programme. He announced that no new tax is being levied in the budget. The elimination of ghost employees, screening out of workers with multiple employment and retrenchment of staff from B-Wasa have enduring effects on the expenditures on account of pay and allowances. "We are expecting remarkable achievement in this direction in the coming months of the financial year,"the governor said. An amount of Rs600 million has been made available for food subsidy besides Rs3.02 billion for debt servicing which shows an increase of Rs152.633 million. The governor said that the government would focus on the recovery of taxes and duties and streamline the revenue collection system. He announced that an ordinance regarding agriculture income tax and general sales tax will be issued in due course of time. Mr Mengal said 788 new vacancies in different categories would be created during the next fiscal year. He said that education sector has been given the highest priority with special emphasis on quality educational services. An amount of Rs1,274 million has been allocated for development activities in education sector. During the next financial year, new collages and schools buildings will be constructed, 50 primary schools will be upgraded to middle standard, 12 technical trade centres will be set up in rural areas and additional rooms in the existing school and college buildings will be constructed. In health sector, the governor said, utmost importance would be given to the provision of healthcare to maximum number of people. In this sector, 13 schemes costing over Rs380 million will be implemented. Nine new schemes under social action programme will be under taken at a cost of Rs90 million. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000622 ------------------------------------------------------------------- Rs68.28bn Sindh budget presented .GST on services levied ------------------------------------------------------------------- Sabihuddin Ghausi KARACHI, June 21: The Governor of Sindh, Mohammad Mian Soomro, has announced a revenue budget of Rs68.28 billion and a development programme of Rs11.25 billion for the next fiscal year. The budget is loaded with heavy taxation measures and shows a deficit of Rs1.6 billion. Unfolding the budget at a news conference at the new Sindh Secretariat Building here on Wednesday, the governor declared his government's determination to raise enough resources from the fresh taxation measures, by bringing about an improvement in the existing tax collection process and through savings in budgetary expenditure that would enable Sindh to finance the bulk of massive development outlay of Rs11.25 billion. This development outlay includes Rs4.51 billion for poverty alleviation, Rs4.5 billion for the Annual Development Programme 2000-2001 and Rs2.24 billion for foreign funded programmes. The new taxation measures, 13 in all, hit mostly the urban areas and propose a straight 20 per cent increase in the existing gross rental values on urban property pending the notification of new valuation tables to be done on completion of property survey. The government proposes levy of Rs5,000 stamp duty on new declarations for printing press, newspapers and periodicals. The registration fees under the Societies Registration Act is to be increased 10 times from Rs1,500 to Rs15,000. Stamp duty is being levied on many sub-leases and an upward revision is being made in respect of stamp duty on insurance and on power of attorney. The governor announced that tariff of various existing fees under different statutes is being revised for which respective departments will issue necessary notifications. He announced the levy of GST on 16 services in the province and an increase in the fees for trade and retail license as well as duties on liquor. Penalty for violating Sindh Wildlife Protection Ordinance is also being increased ten times from Rs1,500 to Rs 15,000. Without quantifying the impact of all these taxation measures on the general public and the improvement in the provincial exchequer, Mr Soomro unveiled a package which, it was later explained, would offer a relief of Rs150 to Rs200 million to the general public. Under the package the number of provincial taxes are being brought down to 10, stamp duty on property transactions from nine to 5 per cent and stamp duty on registration of lease or tenancy deed from six to one per cent. Besides, license fee on shops dealing in food grains is being abolished, maximum limit under Tax on Professions is being brought down to Rs 100,000 from Rs 500,000. He announced the abolition of betterment tax, all surcharges and additional surcharges on the urban property but only after the new valuation tables were notified for all the urban rating areas. In rural areas, however, the valuation tables will be notified to assess stamp duty on property transactions to eliminate discretion of the revenue officers. The Sindh government will henceforth provide three-year/five-year driving licences. Charitable hospitals receiving donations lesser than operating expenses have been exempted from property tax. Federal excise and provincial taxes on marriage halls, lawns, banquet halls and caterers and services will be withdrawn following the enforcement of GST. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000621 ------------------------------------------------------------------- Political activities to remain banned ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 20: The government has delayed its plan to lift the March 15 ban on political activities at least for the time being to avoid any possible unrest. Political circles were expecting the ban to go in near future amid some positive indications from official sources involved in smoothing ground for the devolution of powers at grassroots level. However, the series of unprecedented strikes and protest rallies, which turned violent at some places also, seems to have changed the military government's mind. Interior ministry sources, on a query, told Dawn: "We have no such proposal under consideration at our level."They were of the view that some sort of leniency could be practices towards political activities but that too only after the unveiling of the approved devolution plan and announcement of the district level elections. Speculations about an early lifting of the ban were created by the remarks of the interior minister, Moinuddin Haider, who on May 16 had hinted at the revival of political activities 'in a few weeks'. He had, however, made it clear at that time that such a move would be possible only if political parties desisted from activities harmful to the national interests and the economy. The traders' nationwide strike and their protests elsewhere in all the provinces have apparently made the government reconsider its plan to allow any public show involving political or other organized groups which could create law and order problem. Official sources told this scribe on Tuesday that the ruling clique had shown no sign yet of an active consideration to the lifting of the ban. They said though the interior ministry was authorized to lift the ban, a decision for any such move would have to be taken by the top military leadership. They pointed out that the recent strikes and protests could have turned a major law and order problem had there been no restriction on public political meetings and processions. The situation, they believed, could have exploited by certain political parties to create lawlessness in the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000621 ------------------------------------------------------------------- Gas rates to be increased shortly ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 20: The rates of natural gas are being revised and the government would take a decision on an increase very shortly. This was stated by the federal minister for petroleum and natural resources (P&NR), Usman Aminuddin, at a press conference here on Tuesday. Accompanied by the secretary of P&NR, the minister disclosed that an increase in gas rates had been recommended to the federal cabinet. "The era of cheap gas is over,"uttered some of the P&NR officials adding that an increase was now inevitable. The low rates had been maintained to provide relief to the urban population which makes just 15 per cent of the total, they argued. The secretary of the ministry pointed out that gas was cheapest among all the energy resources including wood, kerosene and LPG. However, he added, there was no justification of keeping the gas rates at such a low level. He told the newsmen that Pakistan was selling gas from its new fields at the rate of two dollars per cubic feet while the price of the commodity from other fields was just two cents per cubic feet. He cautioned that the Sui deposits would start declining from the next year. The officials recalled that the government had taken a policy decision regarding the industry switching over to gas to reduce the import bill. Turning to the prices of POL, the officials said "they are supposed to be revised after three months." They observed that furnace oil had already been deregulated while the LPG would be deregulated soon. Now the industrialists, they added, were free to purchase furnace oil from wherever available cheaper. About the IPPs and other firms, which have signed an agreement with the government for the supply of furnace oil, the officials said they were also free to procure the commodity from the open market. They government, they added, would charge only 15 per cent GST on such procurements. The officials said that the PSO could also oblige them in honouring the agreements if these IPPs or firms desired so. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000621 ------------------------------------------------------------------- Constitution of bench: SHC verdict on Nawaz's petition on 27th ------------------------------------------------------------------- Shujaat Ali Khan KARACHI, June 20: A Sindh High Court full bench on Tuesday reserved its order on ousted premier Nawaz Sharif's challenge to its constitution and out-of-turn hearing of his and other hijacking case appeals for announcement on June 27. The fourth consecutive adjournment for an interlocutory order partly meets the defence objection to day-to-day hearing of the appeals. The two parties and the court seem to be coming round to a consensus that the proceedings be put off until after summer vacation. By another order, the bench allowed suspended senator Saifur Rehman Khan's counsel, Khwaja Naveed Ahmad, to withdraw his power of attorney. Mr Saif was brought to the court premises from the Landhi Jail, seated in the advocate-general's anteroom and allowed to see his wife. Two other respondents appearing in person, Ghous Ali Shah and Shahid Khaqan Abbasi, were present in the courtroom. Advocate-General Raja Qureshi informed the bench that the National Accountability Bureau or the accountability court in the Attock Fort had not so far sought the transfer of the accused-respondents' custody from Karachi, though the Attock court could not conduct its proceedings on Monday due to Mr Saif's absence. He alleged that the counsel's withdrawal was a ruse to evade or delay the Attock trial but since the hijacking case involved death penalty, a counsel shall have to be engaged for him at the state expense. Besides, if Mr Saif wants to stay on in the Landhi Jail to attend the appellate proceedings, he shall have to end boycott of the Attock court proceedings and seek exemption from it through a counsel. The AG said he had already taken up the matter with the home department. Earlier in his arguments in favour of a special three-member bench and day-to-day hearing, the AG said the offence of hijacking as incorporated in the Pakistan Penal Code in 1981 was different from the identical provisions of the English and Indian law. There was only one division bench judgment on the relevant PPC sections (402 A and B) and a three-member bench was required to authoritatively interpret them. The distinctive feature of the Pakistan law was that the hijacker need not be on board. The ex-premier, the AG argued, could challenge the constitution of the special bench before the Supreme Court and the present application invoking inherent powers of the court was not entertainable. In view of the national and international importance of the case, the CJ chose to hear it himself at the head of a full bench just as the chief justice of the Supreme Court constituted a 12-member bench and expeditiously disposed of petitions against the Oct 12 military takeover. Z.A. Bhutto was tried by a five-member bench of the Lahore High Court on its original side, he recalled. References to 'present rulers' in the ex-premier's application, the AG further argued, were intended to cast doubts on the independence and integrity of the judiciary. Citing Hakim Khan's case, he said the insertion of Article 2-A in the Constitution to make the Objectives Resolution an operative provision does in no way affect the CJ's power to constitute benches. Challenging the AG's assertions, Barrister Ijaz Hussain Batalvi, who has been engaged by the ex-PM in the state appeal against him, said the court should not be handicapped by technical considerations. The matter should be looked at from "the eyes of those whose lives are at stake". They have been made to jump the queue and pushed from the rear to the front. As against 40 prior appeals filed under the Anti-Terrorism Act, a special bench has been constituted only for their case for out-of-turn and day-to-day hearing during summer vacation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000620 ------------------------------------------------------------------- Attock court adjourns hearing ------------------------------------------------------------------- Bureau Report Attock, June 19: The Accountability Court here again adjourned the proceedings against deposed prime minister Nawaz Sharif and Saifur Rehman as they could not be produced before it on Monday. As Judge Farrukh Latif took up the case as scheduled, he was informed by prosecutor Mohammad Ilyas Siddiqui that the accused were in Karachi as their presence was required by the SHC on Tuesday. The judge fixed next Monday, June 26, as the next date of production of the accused, subject to SHC orders. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000623 ------------------------------------------------------------------- CE opens Ormara naval base: Deterrence level not to be lowered ------------------------------------------------------------------- Habib Khan Ghori KARACHI, June 22: The chief executive, Gen Pervez Musharraf, said on Thursday that Pakistan's defence would never be allowed to be undermined. "We have a strategy of deterrence which is well looked after and we would never allow any let-up in our defence and security." The CE was responding to reporters' questions after inaugurating the Jinnah Naval Base at Ormara in Balochistan, some 240kms from here. When his attention was drawn to a recent increase in the Indian defence budget, he said "whatever investment was required to maintain our deterrence, we would certainly make arrangements for that". "For the time-being, however, we are not going to make any extra spending on defence. But it does not mean we are lowering our guard. We know what is their (India) strength and what is ours. At the moment our defence is at its place and there is nothing to worry about."Referring to the decision of the International Court of Justice in the Atlantique case, Gen Musharraf said he would not say what step Pakistan would take in the matter unless he consulted legal experts. About the GST issue, he declared that the government would not change its mind and carry out documentation of the economy, which, he said, was essential for the revival of the economy. He, however, said that he would consider it if traders had any genuine problem or suggestion on the issue. Earlier in his speech at the ceremony, the CE said that the naval harbour, Jinnah Naval Base, would open new strategic, operational and economic avenues. "The establishment of this harbour is bound to have a positive impact not only on Ormara but also on the entire coastal belt. I see a bright future for the neglected coastal areas." He then unveiled the plaque of the Jinnah Naval Base followed by dua. He was briefed about salient features of the harbour with the help of a model before he moved to PNS warship Khyber for reception. The harbour has birthing facilities for eight ships and four submarines with space for small auxiliary units. The 3.5km-long approach channel leads to a turning basin and both have been dredged by 10 meters. The Turkish minister of state, Faruk Bal, delivered a brief speech besides Commander of Pakistan Fleet, Rear Admiral Taj Mohammad Khattak. Responding to Mr Bal's speech, Gen Musharraf in fluent Turkish expressed gratitude to the Turkish government for cooperation and collaboration between the two countries. Efforts for further cooperation would continue, he added. He pointed out that JNB had been a long-standing requirement of the Pakistan Navy and had become a reality after many years of hardwork. Without naming India, the CE said that its hegemonistic designs in the region had serious military, political and economic ramifications on Pakistan. Therefore, he stressed, it was imperative for us to provide the navy with the desired flexibility of operation and the level of deterrence to counter the threat posed to our maritime frontiers and assets. He said that finding an alternative base away from Karachi was a strategic imperative. "Let me, however, reiterate that Pakistan remains a peace-loving country with no offensive designs against anyone. But we shall defend our national interests with all our available resources,"he asserted. The CE announced that the work on the coastal road would commence next month and it would be ensured that it completed swiftly. Similarly, he added, the decision to complete deep water seaport at Gwadar had already been taken and hoped that work would commence shortly. "I hope that we shall be able to plan more development projects for Balochistan." He appreciated the Pakistan Navy's role in ensuring the standard of education in the coastal areas. "I am happy to see PN ships and submarines at this naval base which from today will be their home." In his welcome address, Rear Admiral Khattak termed the ceremony a landmark occasion not only for Pakistan Navy but also for Balochistan and the entire nation. Referring to the presence of extra regional forces at sea, he said the massive Indian Naval build-up much beyond its bona fide needs was a matter of concern for us as it was clearly directed towards control of shipping lanes, and domination of the Arabian Sea. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000623 ------------------------------------------------------------------- Amnesty International deplores Indian HR abuses ------------------------------------------------------------------- Nasir Malick LONDON, June 22: The Amnesty International has severely criticized the Indian-occupied Jammu and Kashmir regime for its failure to respond to the national and international concerns over the grave and massive human rights violations in the Valley. In a strongly-worded statement issued here, the AI said the regime's stated commitments to human rights could not be taken seriously. It regretted that protection and promotion of human rights was not a priority of that government. The AI recalled that it had written to the Indian controlled territory's rulers a month ago to ensure investigations into the series of unlawful killings in March and April and punishment to the perpetrators. However, it added, no response had been given by the other side as yet. The organization has sought support from the governments around the world, HR groups and individuals for its efforts to exert pressure on the regime in this regard. It again called for an independent and impartial judicial inquiry into the three tragic events in which almost 50 people were killed "unlawfully". Thirty-five Sikhs were massacred in Chithisinghpora by a group of people wearing Indian army uniforms on March 20 and the culprits have not been identified till date. A few days later, security forces gunned down five people in Panchalthan and identified them as 'armed militants' involved in the Sikhs' massacre. On April 3, police unleashed a reign of terror on protesters demanding exhumation of the five victims. They insisted that the victims were innocent villagers, and not militants, who were executed by police after their arrest. Seven more people were shot dead in the police action against the protesters. The AI also indicated the governments in New Delhi and Srinagar were ignoring its report pertaining to the disappearance of 700 to 800 people. The report was published in February last year. In response to another report pertaining to the frequent abuse of the Public Safety Act, India had conveyed a two-page extract from the PSA, the organization said. "People are often held in preventive detention without reference to any law,"it remarked adding: "Recent letters about the rising number of custodial deaths and extra-judicial executions reported from the state have also been left unanswered". Agencies add: A Kashmiri leader on Thursday alleged a sharp increase in custodial killings in occupied Kashmir and threatened to launch a strike. Abdul Gani Lone, a senior leader of the All Party Hurriyat Conference, told a press conference in Srinagar: "custodial killings are taking place under a well coordinated plan under the supervision of the Indian home ministry to break the political will of the people,"the 70-year-old Lone said. Yaseen Malik, another prominent Kashmiri leader, has vowed to go on a death fast from the end of this month if nothing is done about the killings.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000623 ------------------------------------------------------------------- Pakistan, India urged to resume talks ------------------------------------------------------------------- Correspondent LONDON, June 22: Britain on Wednesday urged India and Pakistan to resume the Lahore process to resolve the Kashmir dispute, which is threatening the stability of the region and the human rights of the people of Kashmir. "We continue to urge both Delhi and Islamabad to get together to resolve the matter (of Kashmir),"British Foreign and Commonwealth Office Minister Peter Hain told members of the House of Commons on Wednesday afternoon during question and answer session. "It (Kashmir dispute) cannot continue as a festering sore, threatening stability in the region and the human rights of those in the area concerned" MP Alice Mohan from Halifax had raised the issue of Kashmir in the House saying that a vast majority of the people believe that Kashmiris should decide their own fate and suggested that Britain should ask the United Nations to promote a plebiscite in Kashmir before considering expansion in the UN Security Council. Replying to her question, Peter Hain said the issue of an enlarged Security Council was quite different from matters that might or might not be occurring in Pakistan or India, even if those matters might influence the Asian group's decision about its representative. "That is a matter for the Asian group, not Britain, to decide." He accused Gen Pervez Musharraf of setting back the process of peace between the two countries by sending troops to Kargil when the prime ministers of India and Pakistan were engaged in talks. He said the Kargil incident had set back the Lahore process. Saying that Britain would continue to remain actively engaged in seeking to resolve the Kashmir conflict, he said Britain wanted India and Pakistan to resume the Lahore process, which resulted from the courageous decision of the Indian Prime Minister to travel to Lahore. "The discussions (between Indian and Pakistani prime ministers at Lahore talks) provided a breakthrough, and it is unfortunate that the subsequent Kargil incident in Kashmir - the author of which was Gen Musharraf - has, along with last year's coup, set the process back,"Mr Hain said. Asked by another MP Fiona Mactaggart from Slough to make a statement on Britain's relations with Pakistan, the foreign minister said Britain had close and longstanding ties with Pakistan and would like to see democracy restored in that country. He said Britain would continue to urge Gen Musharraf to produce a complete timetable for the transition to democracy. When Ms Mactaggart pointed out that the Pakistani community felt that the legitimate concerns of Islamabad were being ignored as a result of Britain's pressure on the government to restore democracy and that an isolated Pakistan could be a more threat to peace in South Asia, Mr Hain agreed that an isolated, embattled and beleaguered Pakistan could find itself reacting accordingly, and that could be dangerous. Mr Hain said Britain wanted to see Pakistan develop, succeed and return to democratic rule. "We will work with the Pakistani people and their representatives to achieve that, as we are now doing." Asked by John Wilkinson from Ruislip whether it would not be appropriate for Pakistan to return to a single electoral list when elections were held so that minorities living in that country could get a better deal, and whether the British government would press for lifting blasphemy laws, Mr Hain said Britain would continue to press for the lifting of the blasphemy laws. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000623 ------------------------------------------------------------------- Writ filed against Nawaz for 'treason' ------------------------------------------------------------------- LAHORE, June 22: The Lahore High Court has issued a notice to the Attorney General asking him to state whether the deposed prime minister, Nawaz Sharif, should stand a trial on treason charge. Justice Mohammed Qayyum issued the notice, asking the AG to appear before the court on June 30, on a petition filed by a resident of Lahore, Arif Noor. The petition has cited 'leakage of state secrets' as the basis for the case. Nawaz Sharif had remarked in his June 13 statement that the Chief Executive, Gen Pervez Musharraf, in his capacity as the chief of the army staff, had initiated the Kargil operation without his knowledge, which had led to an armed conflict with Indian armed forces and resulted in heavy casualties on Pakistan side. The ex-PM is serving life imprisonment in the infamous plane hijacking case and facing many more corruption cases. He had demanded setting up of a high level commission to for a thorough inquiry into, what he called 'a misadventure'. Gen Musharraf has rejected the claim as an attempt to 'belittle and undermine' the army saying that it spoke very low of ex-premier's patriotism.-Agencies DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000622 ------------------------------------------------------------------- EU waiting for democracy in Pakistan ------------------------------------------------------------------- Shadaba Islam BRUSSELS, June 21: Relations with Asia are back on the European Union's crowded foreign policy agenda as the 15-nation bloc seeks to extend its global political reach. Meetings with Asean and members of Asem, the process of Asia Europe Meetings launched in 1996, will be held in Lisbon from June 25-26, with a first-ever summit meeting with India on June 28. Last month the EU signed a new cooperation treaty with Bangladesh. In recent days also, EU leaders have promised closer relations with Singapore following discussions with Prime Minister Goh Chok Tong and on June 14, Indonesian Foreign Minister Alwi Shihab and the EU held a first-ever political dialogue to launch a new era in their often-troubled relations. The flurry of EU activity excludes Pakistan. The EU diplomats say the Union is anxious to maintain good relations with Islamabad despite military rule in the country. But a so-called "qualitative leap forward"in EU-Pakistan relations will have to wait until the military government sets a date for a return to democracy. The renewed focus on Asia is part of the EU's efforts to play a more powerful global role, including efforts to engage Asian nations in unprecedented talks on security issues. "The EU is a global power, certainly from the economic point of view, but also with an increasing political will to participate actively in world politics,"said an EU official. With its potential flashpoints in the Korean peninsula, Kashmir and the Spratlys - not to mention "recurring tensions"between China and Taiwan - Asia must be part of the EU's new security purview, says a recent European Commission report. Portugal, current "president"of the EU, has laboured hard to put relations with Asean back on track. In a sense its crowning glory before it hands over the presidency to France on July 1 is the organization of a first-ever summit meeting with India on June 28. EU diplomats stress that the high-level encounter - to be followed by regular annual summits between the EU and India - is in recognition of India's growing economic and political clout both in the Asian region and the wider global stage. The summit put EU relations with Delhi on a par with its institutional links with China, Japan, Russia and the United States. "We believe that as the world's largest democracy it is important to engage India,"said a senior EU official. The meeting also marks a definite end to earlier EU determination to keep a balance in its relations with Delhi and Islamabad. Progress is also being made on other EU-Asian fronts. After months of diplomatic efforts, a meeting of EU and Asean officials has been scheduled for Lisbon on June 26-27 to relaunch region-to-region political talks. Preparations are also under way to hold long-awaited ministerial talks between the two groups, probably in Laos, just after the Asem summit in Seoul on October 20-21. Political contacts between the EU and Asean have been at a standstill for the last three years following Burma's entry into Asean. However, diplomats say there is growing recognition in both regions that it is time to push EU-Asean relations forward despite disagreements over Burma. As such, representatives from Burma will be attending the meeting in Lisbon and the ministerial dialogue in Laos despite the Union's policy of economic sanctions against the country. EU insiders say Britain and the Netherlands, which were initially hostile to political contacts with Burma, have agreed to participate in meetings attended by Burmese diplomats and the foreign minister following a recent EU decision to toughen sanctions against Rangoon. The new sanctions package includes a comprehensive blacklist of some 200 of Burma's military leaders who are banned from travelling to Europe. But EU insiders say no such restrictions are in force for either Burma's foreign minister or diplomats from the country. "Essentially the EU has taken an important decision to delink its policy towards Burma from its wider desire to have closer relations with Asean,"an official stressed. But Burma can be expected to be quizzed in detail about both its economic difficulties and continuing refusal to open a dialogue with pro-democracy forces, say sources. A delegation of EU officials is expected to visit Rangoon in September as part of the Union's policy of trying to maintain a discussion on human rights with the country. The meeting of Asean senior officials will be followed by talks within the wider Asem framework, with the focus on preparations for the third meeting of Asem leaders in Seoul in October. The EU is hoping to revive the Asem relationship by including security and defence issues on the agenda but officials say that China and many others in Asia remain opposed to the initiative. Instead, Asians want the focus to be on trade, economics and cultural cooperation. Portugal has also succeeded in putting relations with Indonesia on a new footing following talks with Foreign Minister Alwi Shihab in Luxembourg earlier this week. The EU has pledged to back "historic changes"taking place in Indonesia and to support a "strong, democratic, united and prosperous"Indonesia. Officials say the EU will be giving special assistance to strengthen the office of Indonesia's attorney-general in a bid to improve the country's efforts to combat corruption and ensure good governance. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000622 ------------------------------------------------------------------- Pakistan dismayed over verdict: ICJ refuses to hear Atlantique case ------------------------------------------------------------------- THE HAGUE, June 21: The International Court of Justice (ICJ) ruled on Wednesday that it had no authority to adjudicate a dispute between Pakistan and India over the shooting down of a Pakistani naval plane. Judges voted 14-2 in favour of New Delhi, which argued that in 1974 it had filed a "reservation", or exemption from the World Court's jurisdiction, in disputes pitting India against another Commonwealth country such as Pakistan, or in armed conflicts. The court did not accept Pakistan's contention that the exemption conflicted with India's other international obligations, including the United Nations charter. Pakistan had asked the court, the main judicial organ of the United Nations, to rule that India was responsible for bringing down its naval surveillance aircraft, the Atlantique, on August 10 last year, killing 16 people. Pakistan wanted India to pay compensation. India claimed that the plane had intruded into Indian airspace and was fired on only after warnings were given. "The Commonwealth reservation... may validly be invoked in the current case,"said ICJ President Gilbert Guillaume. "The court finds that it has no jurisdiction." Guillaume told the two states that even though the court will not hear the case, they are obliged under international law and treaties among themselves to settle disputes peacefully. Pakistan's attorney general and law minister, Aziz Munshi, said the ruling offered hope for the two rivals. "I am not totally disappointed with the decision...this is in fact a step forward,"he told Reuters. "This means that all disputes, including the Kashmir dispute, must be settled through peaceful means." In Islamabad, Pakistan on Wednesday expressed dismay over the International Court's ruling that it lacked jurisdiction to decide a dispute over the shooting down of a Pakistani navy plane by India in August last year. "It is unfortunate that the procedures of the International Court of Justice (ICJ) do not permit dealing with cases involving international terrorism and gangsterism,"foreign office spokesman Iftikhar Murshid told AFP. "This reflects poorly on its ability to address international crimes such as the shooting down of the unarmed Atlantique of the Pakistan navy, which was well within Pakistan territory, by India," Murshid said. During four days of public hearings in April, Pakistan argued that the court in the Hague was competent to rule while India opposed its contention. In New Delhi, an external affairs ministry spokesman told reporters India welcomed the court's ruling, and also praised its remark that under two key accords the two neighbours were obliged to settle their differences peacefully. "India stands committed to dialogue and calls Pakistan to create a peaceful environment for such a dialogue through cessation of cross-border terrorism and abandonment of hostile propaganda,"he said. The air incident heightened tension between the neighbouring countries just a month after they had pulled back from the brink of war over the disputed Himalayan region of Kashmir. Pakistan says the aircraft was in its own airspace when it was brought down by Indian air-to-air missiles. The rulings of the court are binding and without appeal.-Reuters/AFP
=================================================================== BUSINESS & ECONOMY 20000619 ------------------------------------------------------------------- Pakistan seeks cash for F-16s ------------------------------------------------------------------- Correspondent ISLAMABAD, June 18: Pakistan has refused to import wheat from the United States and sought cash in lieu of the outstanding amount of F-16 aircraft. The US government has been asked to pay the remaining amount of $80 million in cash during the financial year 2000-2001, disclosed Finance Minister Shaukat Aziz while replying to a question at a post-budget press conference here on Sunday. Pakistan last year had imported food commodities worth $60 million against F-16s money. And for the year 2000 the US had offered Pakistan to import food commodity worth $30 million to balance the amount. The remaining $50 million was to be utilized in the next US fiscal year 2001. But, due to surplus wheat production, Pakistan has now declined to receive wheat from the US and asked for the payment of its outstanding money. Islamabad had paid $140 million to the US for the purchase of 28 F- 16 planes. But the US declined to provide these planes. In 1998, after hectic negotiations, it was agreed between the two countries that Pakistan would import food commodities from the US against this amount in the next three years. Elaborating the answer on behalf of the finance minister, the finance secretary, Mohammad Younis Khan, told this correspondent that Pakistan had also asked the US administration to repay the outstanding amount in dollar. "We have requested the US government to pay our money in foreign currency as we have already made this amount part of our external resources to be realised next fiscal year", the secretary added. He said the GoP had told the US administration that we did not want to import wheat as the country had produced a surplus wheat of 3 million tons this year. To another question, Mr Khan replied that Pakistan would not import other food items from the US, even if offered. The secretary made it clear that the government was interested in its pending money and in this connection a formal request had already been placed before the US government. It may be recalled here that Pakistan has already mentioned the Rs4.392 billion F-16 money in its external resources for the year 2000-2001. Meanwhile, sources said, the foreign office had asked the Food Minister, Dr Shafqat Ali Shah Jamote, to explain as why did he issued a statement to the press in the first week of this month regarding wheat import from the US against F-16 deal. The minister while replying to a question at a press conference recently had told the reporters that his ministry was not in favour of wheat import from any country, including the US, under the F-16 deal as "we have surplus production this year." "It was the responsibility of the foreign office and the finance ministry to convey the actual situation to the US government as personally, I am not in favour of wheat import", Dr Jamote had emphasized. His statement had put the FO officials in an awkward position as the US had already adjusted the money in wheat import head for Pakistan. The foreign office had taken a serious note of the minister's statement and had asked Dr Jamote to explain in which capacity he spoke on the issue related to the foreign office. Dr Jamote is likely to submit his reply on this issue in a couple of days. NNI adds: The US had blocked the delivery of 28 F-16 fighter planes to Pakistan after Islamabad was subjected to economic sanctions under the Pressler amendment in 1990. The former government of Nawaz Sharif had struck a deal with the US under which, the US administration was obliged to provide "goods and benefits"to Pakistan worth $140 million. An agreement signed by the US and Pakistan on Feb 23, 1999 for provision of 0.2 million tons of wheat, worth over $2 million, under the same programme. This wheat was delivered at Port Qasim in May 1999. The shipment cost was $10,259,360. Another agreement was signed by the US and Pakistan on Aug 4, 1999 to provide 100,000 tons of wheat, value $13 million under the PL- 480 programme. This wheat has not yet been delivered because of delay in contracting for shipment. The US administration told the GoP that under these agreements, it provided wheat worth $60 million. These arrangements included an agreement singed by the US administration and the (GoP) on Jan 8, 1999 to provide 100,000 tons of wheat worth over $11 million under the US government section 416(b) programme. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000618 ------------------------------------------------------------------- Major changes in tax system ------------------------------------------------------------------- Ikram Hoti ISLAMABAD, June 17: Five major changes have been effected in the taxation system, says Finance Minister Shaukat Aziz. In his budget speech here Saturday he presented a package which contains the following: Wealth tax has been abolished; gross profit rate (GPR) will be fixed for the income taxpayers in consultation with the business representative bodies; the tax issues with regard to textile and cement sectors would be exclusively dealt by two zones to be created shortly - one in Karachi and the other in Lahore; central excise duty on 16 locally-manufactured goods has been exempted; under the new time limit, 70 per cent of refunds to exporters would be paid within 24 hours, and the rest in 30 days. This facility would be apart from the authorization to income tax department for issuance of exemption certificates for compensating delay in refund repayment. Customs duty on import of sugar has been reduced from 35 per cent to 25 per cent and 10 per cent central excise duty has been waived; duty on import of television has been increased from 25 per cent to 35per cent; duty on 1800 and above cars has been increased from 225 per cent to 250 per cent; rate of duty on ship-breaking industry (ship plates) reduced from Rs1500 PMT to Rs1,000 PMT plus 15 per cent; duty on poor students' books and newsprint reduced from 10 per cent to 5 per cent; duty rate on viscose yarn filament reduced from 25 per cent to 10 per cent; baggage limitation for travellers abroad removed on value/quantity; penalty-free storage/warehousing period for edible oil increased from 15 to 30 days; information technology items exempted from duty; and new passbook scheme for exporters was announced for duty free import of raw materials. Compound additional sales tax rate has been reduced from 5 per cent to 1/2 per cent; 3 per cent further tax reduced to 1/2 per cent; further tax not chargeable on supplies to registered persons; sales tax non-compliance penalties reduced to 40%-50% of the present rates; oil cake used as cattle feed exempted from sales tax; retrospective exemption of sales tax on supplies of soybean oil and palm oil granted; exemption on import and local supply of CNG kits withdrawn; NRI-Scheme one-bus exemption on import duty withdrawn. Apart from these, the following relief has been offered to the salaried class: 80 per cent reduction in tax liability for low-salaried group, 5% for the higher salaried employees; teachers and researchers allowed 50% reduction in tax lability; income tax exemption for computer training institutions to set up between July 1, 1997 and June 30, 2000, extended up to June 30, 2005; educational and scientific research exempted from 25% customs duty and whole of sales tax; 0.5% income tax on software export waved; another one year tax exemption for brokerage houses; disabled persons allowed exemption from vehicles import duty of 5%; presumptive tax facility extended to the industrial undertakings at the EPZs; rate of additional duty reduced from the compound rate of 2% per month to 1/2 percent per month. Other important changes made in the taxation system are: Anti- Dumping Duty Ordinance 2000 stands implemented; National Tariff Commission to examine budgetary anomalies. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000618 ------------------------------------------------------------------- Govt servants get relief ------------------------------------------------------------------- ISLAMABAD, June 17: The government on Saturday announced an interim relief of up to Rs2,000 for the government employees of grades 1-16 for their religious festivals. The finance minister said the government was conscious of the economic hardships facing the government employees. Their salaries and allowances, he said, had not kept pace with inflation, though some ad hoc relief had been provided since 1994 when the last pay and pension revisions were made. "The answer to their problems lies in revision of salaries and pensions on the basis of the Pay and Pension Committee." Mr Aziz said: "I have directed the new chairman of the Pay and Pension Committee to devote extra efforts to finalize the report at the earliest."-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000619 ------------------------------------------------------------------- Defence budget not reduced: Shaukat Aziz ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 18: Finance Minister Shaukat Aziz said on Sunday that there would be no fundamental changes in the budgetary framework during the next three years, with a view to restoring the confidence of local and foreign investors. "There could be some minor adjustments here and there but essentially there will be a consistency, and I assure you that largely our fiscal, trade and monetary policies will remain unchanged during the next three years,"he told a post-budget news conference. He said that one of the major jobs of the government was to restore the confidence of investors which, he regretted, had been shattered so much that people were still hesitant to come to this part of the world for any meaningful investment. "Our three years' economic framework programme, which has been carved out for the first time in Pakistan at the time of the budget, is designed in such a way that it would click the investors,"he claimed. Asked how the government would revive investors' confidence and ensure that no cases were framed against them as was witnessed during the previous government, the minister said: "The incentives we are offering are clearly sufficient to attract foreign investors in Pakistan." He said that issues with 13 IPPs had been settled and now Hubco was the remaining case which was to be decided. He hoped that an agreement with Hubco would soon be reached once the government gave its counter-offer of tariff to them. However, he said, the benchmark set by the 13 IPPs should become the basis for getting the tariff and other issues settled with Hubco. "We will settle issues on a commercial basis so that interests of the government, Hubco and those who offered loans are protected adequately." Mr Aziz revealed that the government had formulated a contingency plan to meet any eventuality if the IMF did not offer any funding in the next fiscal. "We have not received a penny from the IMF since May 1999 which forced us to have some contingency plan to meet our funding requirements,"he said, adding that the plan had been reviewed from time to time. However, he was optimistic that the IMF funding would soon be restored. "We are working with the IMF to have a new programme from them". He said the IMF review mission would visit Pakistan next month to discuss various issues, including the budget. "Later the mission would give its report to the executive board after which we hope to see our aid restored." Defending the budget, he said it had largely been a welfare- oriented budget which offered relief to almost all sections of society. He did not believe that the target of collecting 24 per cent additional revenue would be a very difficult task. He said the GST would be the future tax and the purpose was to widen the tax net without creating problems for the taxpayers. He said the 24pc tax target would increase the revenue to 12.4pc of the GDP, compared to existing 11pc. "On the basis of this 24pc increased revenues in 2000-2001, we have increased the development budget by over 20pc." The minister said the GDP growth rate for the outgoing fiscal was likely to be around 5pc instead of 4.5pc because of the expected over 21m ton wheat production. The GDP growth rate during the next three years was expected to be 6pc. "Then our stress would be on achieving 3.5pc fiscal deficit in the next three years with half a per cent current account deficit,"he said, adding that foreign exchange reserves would be sufficient for 12 weeks of imports against the existing for 4 weeks during the next three years. He said the economy was facing serious challenges for which bold decisions would continue to be taken. He said the government did not entertain any lobbyist for the budget which had been prepared keeping in view the national interests in mind. The minister said that increase in the salaries of government employees would soon be possible after the pay and pension committee, headed by Finance Secretary-General Moeen Afzal, finalized its recommendations. At this stage Mr Afzal told a reporter that without having resources it was difficult to propose any big relief for the salaried class. Mr Aziz said that assets declaration worth Rs20 billion had been filed by the people under the tax amnesty scheme, which he termed a big success. "And we have received over Rs2 billion in this behalf." He said the central board of revenue would give Rs10 billion exports refund in the next 10 days so that the department should start its job with a clean slate from the next financial year. "This amount of Rs10 billion will be paid across the board so that enough liquidity should go into the economy,"he added. The minister announced that on Aug 14, the newly-established Micro- Credit Bank would give first loan to a deserving unemployed person. "We have decided to revive 114 sick industrial units within next 90 days for which Rs7 billion will be offered by the government,"he said, adding that such units had already been identified. He said the government had also decided to deregulate the furnace oil and LPG prices to remove complaints about corruption and to end black-marketing. In reply to a question, the minister dispelled the impression that the defence budget had been reduced. "In fact, there is a 10pc increase in the defence budget as we could not be careless about our security, and growing threat perceptions in the region". When asked why the government had reclassified defence pensions by putting it in the civil administration, Finance Secretary Younus Khan said that any pension did not form part of defence budget. "We decided to do so not to overhang our defence budget." He told another questioner that the privatization process had been accelerated as LPG companies were being put up for sale next month. Similarly, two of the state entities would also be privatized in July. "But let met tell you here that we would not privatize everything as we are going to have corporatization of many institutions."The National Bank would not be privatized but its 5 to 10pc shares would be initially sold through stock market. He claimed that a number of investors from the Middle East had shown interest to take part in the privatization programme. The finance secretary told a reporter that bank borrowing would decrease during the next financial year as "we have decided to lower the budget deficit from Rs193 billion to Rs162 billion to achieve deficit target of 4.6pc of the GDP against the 6.1pc in 1999-2000". DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000624 ------------------------------------------------------------------- 'No cut in export finance rates' ------------------------------------------------------------------- Reporter KARACHI, June 23: Finance Minister Shaukat Aziz candidly told textile millers on Friday that there would be no further cut in export financing rates: exporters currently get export finance at eight per cent. "The minister was very clear on this that there is going to be no reduction in export financing rates,"vice chairman, All Pakistan Textile Mills Association Nadeem Maqbool told Dawn by telephone. He said after attending a three-hour meeting at the State Bank head office that the minister made it clear that while financing value- addition in textiles banks would not crowd out weaving and spinning sub-sector: the meeting chaired by Shaukat Aziz, was attended by Commerce Minister Razzak Dawood, SBP Governor Dr.Ishrat Husain, heads of banks and DFIs and representatives of the textile industry. The meeting which was convened to discuss textile-vision 2005, discussed textile financing under the five-year policy aimed at preparing Pakistan to compete with other nations in a quota and restrictions-free textile market by 2005. The chairman of Small & Medium Enterprises Authority (SMEDA) Iqbal Mustafa briefed the meeting on textile vision 2005 and also on financing to small and medium enterprises. "The minister said the country needs to have a better weaving and spinning base for promoting value-addition,"Maqbool said. He said facts related to poor value-addition in Pakistan came to the for at the meeting and quoted SMEDA chief as having told the meeting that value-added textile exports of Pakistan stand around $1.5 billion only. SBP chief had said on Thursday that Pakistan's value-added textile exports stood at $800 million-far below than $4.5 billion of Bangladesh-a country which does not produce cotton. Participants of the meeting said that textile millers told heads of banks and DFIs that they would need a bank financing of around $400 million in the current and next year for expansion and BMR projects. They said the bankers replied that they would look at each financing proposal individually and evaluate it in a most professional manner before lending money. The participants said Finance Minister Shaukat Aziz appreciated the position taken by the banks and DFIs and made it clear that the government had no intention to dictate its terms for financing textile projects. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000619 ------------------------------------------------------------------- Survey form: NTN holders get facility ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 18: The Central Board of Revenue (CBR) said on Sunday that the Finance Ordinance, issued here on Saturday, had amended the Survey for the Documentation of the National Economy Ordinance 2000 the way it had been agreed by the government and traders. In a statement issued here, a spokesman for the CBR explained that the ordinance had exempted the holders of the national tax number (NTN) from filling out the column 13 of the business survey form. This section of the form required them to declare value of stocks. The ordinance had also notified that the information gathered through the survey would be issued for the financial year 1999- 2000 and these concessions were for existing NTN holders, the spokesman added. The spokesman said the amendments had given a chance to the existing NTN holders to declare their stocks in their income tax returns for the financial year ending on June 31, 2000. He clarified that small traders were exempted from the General Sales Tax (GST) as it was imposed only on those traders who had annual turnover of more than Rs1 million. He also dispelled the impression that retailers were required to maintain a complex record. He explained that the retailers who were required to pay a turnover tax needed to maintain a simple record. This record should contain a daily record of purchase, including the date of purchaser, items purchased, quantity and value of purchase. The sales record needed to maintain a total value of the sale of the day. On the basis of the record of the month, a sales tax return had to be submitted by the 15th of the next month, he explained. The return, he said, was submitted to a designated branch of the National Bank and at no stage any other office had to be visited. The retailer was also required to keep a record of utility bills, he said, adding that in the return to be filed at the end of each quarter he was required to declare the value of stock. The sales tax return, he argued, was simple as it only required the name and address of business, sales tax registration number, record of purchase and total sales without the sale of items exempted from the GST. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000622 ------------------------------------------------------------------- Sindh to net Rs850m farm tax ------------------------------------------------------------------- Reporter KARACHI, June 21: Sindh Governor Mohammad Mian Soomro has no idea if the tax on agricultural income being proposed by the federal government would be different or identical to that of the Sindh Agricultural Income Tax (Amendment) Ordinance '97. "The federal government wants uniformity in agricultural income tax"the Governor replied when asked by a number of reporters to spell out the features of the new agricultural income tax after he delivered the budget speech on Wednesday. He was not sure when would the provincial government receive the draft of the new agricultural income tax ordinance. The Sindh budget documents show an expected collection of Rs850m next year from agriculturists in Sindh. It also show a recovery of Rs650m in the current outgoing fiscal of '99-2000. Strangely, the Sindh government promulgated the Agricultural Income Tax (Amendment) Ordinance '97 only recently after the Supreme Court gave mandate to the military rulers for legislation. The Sindh Board of Revenue did not make any serious effort to collect taxes from the kharif when three main cash crops-cotton, rice and sugarcane- are sown and harvested. Reports suggest that the Board of Revenue is in process of making assessment of the rabi crop income after the agriculturists reported to have harvested a rich wheat crop of three million tons. According to the federal finance minister, an increase of 25% in the official procurement price of wheat has injected additional liquidity of Rs 50 to Rs 60bn in the rural areas. A rough estimate shows that agriculturists in Sindh have earned additional income of at least Rs 15 to Rs 20bn in the last rabi. The Board of Revenue is expected to serve demand notices for tax collection from agriculturists and the recovery would begin sometimes late July. The amount of Rs 650m agricultural income tax recovery shown in the budget document is therefore just an estimated figure and not an actual recovery. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000624 ------------------------------------------------------------------- Privatization programme: Shaukat asks banks to lure investors ------------------------------------------------------------------- KARACHI, June 23: Finance Minister Shaukat Aziz on Friday asked the local and foreign banks to market around the recently initiated privatisation programme in Pakistan. He was addressing the heads of banks, DFIs and investment banks at State Bank of Pakistan during a post budget briefing for banks. SBP Governor Dr Ishrat Hussain was also present on the occasion. He said Pakistan was gearing up to launch a transparent privatisation programme which will be done partly through sale of strategic shares of state enterprises and floating of 5 percent to 10 percent shares through stock market. He said first to come on the list includes National Bank of Pakistan, meter unit and LPG of SSGC, etc, adding that overseas investors have shown keen interest in PTCL and PSO. The minister said banks particularly global banks can play a role of catalyst in Pakistan's privatisation programme locally and globally. He was of the view that the banks can identify good managements in Pakistan which can purchase public sector companies on the list of privatisation. He said the banks can also finance the purchase of privatisation deals for good management companies under five to six year repayment arrangement. "I think banks should also pay attention to this side as it is a part of corporate financing. The banks, of course should do financing on logical basis to ensure a good cash flow,"Mr Aziz said. He pointed out that it is a universal approach by the banks. The minister suggested the heads of banks to go to Middle East as not only sufficient finances were available there but investors were also interested in the Pakistani companies being privatised. He was of the view that instead of Pakistan government going to M.E to market its privatisation programme, the banks must go there for the purpose. He said two banks can go in a group to at least two countries and market there the privatised units. He said the government will also arrange a presentation by Privatisation Commission for banks, but before that banks should also initiate at their own for the purpose. The minister also suggested banks, DFIs and investment institutions to offer adequate corporate financing as the area required maximum concentration. Similarly, he said banks should also take up the issue of dead and stuck up assets with the government. He said government has taken decision to release 1,100 cars at the ports Giving details of the salient features of the federal budget, the minister said several steps have been taken for the development of banking and financial sector. He said removal of non-accrual interest on banks will cost Rs 700 million to the national exchequer. Similarly, he said exemption from 5 percent surcharge will also help banks. To a question, he said the income tax rate of 55 percent is higher on banks and the government will take this issue in the next year budget. He offered banks to utilize the services of National Accountability Bureau (NAB) for the collection of stuck up loans and said NAB will act only after State Bank's signal and approval of the CE's committee.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000624 ------------------------------------------------------------------- World Bank offers $90m for poverty alleviation ------------------------------------------------------------------- Bureau Report ISLAMABAD, June 23: The World Bank has offered $90 million to Pakistan for poverty alleviation, specially by providing small loans to unemployed youth. "We have been offered $90 million by the World Bank for undertaking a three-years poverty reduction programme", stated the chief executive of Pakistan Poverty Alleviation Fund (PPAF), Kamal Hayat. He told Dawn that PPAF was a private organization operating with the help of credible non-governmental organizations (NGOs). He said the Bank had promised to offer another $100 million if the PPAF showed some success during the next three years. Mr Hayat said the PPAF was the single biggest programme launched in the private sector to reduce poverty both in rural and urban areas. Giving the details, the Fund chief executive said out of the $90 million, $45 million would be spent on extending micro credit, $30 million for building community physical infrastructure while the remaining amount had been kept for capacity building which meant the training of the NGOs. "This would be the first time in the history of Pakistan that the funds, being given to the NGOs, will have to be returned to the PPAF", Mr Hayat said adding these NGOs would pay back the money with certain mark up. Asked how would PPAF ensure the corruption-free loaning through NGOs, he said there would be a full monitoring system of the programme and that auditors would also be appointed to see that the funds was not misused. Responding to a question he said so far 12 NGOs had been offered money. "We are giving them money on quarterly basis and further funds are offered keeping in view their past performances", he said adding formal agreements for Rs800 million had so far been signed with the NGOs in this regard. To a question he said funds had been given to those NGOs which had the experience of two years. He said it was being ensured that the NGOs operating in Sindh should also get adequate share to help reduce poverty in the province. Besides NGOs, Mr Hayat pointed out that the task of alleviating poverty was also being done with the help of the community-based organizations. To another question he said PPAF was different from the government's newly-established micro credit bank. He said foreign donors were also interested to provide additional funds for improving literacy rate in the country. The fund chief executive said the government had done a good job by establishing a micro credit bank with initial money of Rs01 billion to provide small loans to the people. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000623 ------------------------------------------------------------------- SBP allows rupee-slide by 20 paisa on inter-bank market ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, June 22: The State Bank on Thursday allowed banks to buy and sell the US dollar in a new unofficial band of Rs52.10 and Rs52.30 - up from Rs51.95/Rs52.10. Bankers said that the greenback changed hands at Rs 52.20/Rs 52.27 in spot transactions in the inter-bank market after the SBP move. Currency dealers said that the dollar closed 10 paisa up at Rs54.70 and Rs54.75 in the open market against the Wednesday close of Rs54.60 and Rs54.65. Explaining the rationale for a new informal exchange rate band, the SBP governor, Dr Ishrat Husain, said at Karachi Chamber of Commerce & Industry that it was done because of more demand for foreign exchange in the market on Thursday. He also referred to the depreciation of Indian rupee while commenting on the downward adjustment of Pakistan rupee. This becomes an important reference when seen in the backdrop of the total depreciation in the value of Indian and Pakistan currency since July 1, 1999. As per Dawn's calculation, both the currencies depreciated about one per cent during this period. The Indian rupee fell to 44.68 to US dollar on 22nd instant from 43.32 on July 2 last year whereas Pakistan rupee fell to 52.30 from 51.63. Treasurers of local and foreign banks told this scribe that there was no unusual demand for foreign exchange in inter-bank market on Thursday. They said that a 20 paisa depreciation was allowed in the value of the rupee as part of the State Bank strategy of bringing down the value of the rupee in phases. Bankers were of the view that there was also no panic-driven forward buying by importers after the fall of the rupee. The chairman of All-Pakistan Textile Mills Association, Mohsin Aziz, opined that the downward adjustment was a welcome move from the exporters' point of view. He said that the APTMA recognized the SBP right to regulate foreign exchange market on the basis of demand and supply. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000620 ------------------------------------------------------------------- Shaukat on import of furnace oil: Govt monopoly to go on July 1 ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, June 19: Finance Minister Shaukat Aziz said on Monday the government had decided to deregulate import of furnace oil from July 1. He told Dawn at the end of his press conference at State Bank here that commercial importers would be allowed to import only furnace oil and not other petroleum products. He said state-run Pakistan State Oil would continue importing furnace oil as usual. Earlier he told the press that the ministry of commerce would release a detailed trade policy later this month adding that the policy would focus on export growth. He said the State Bank would manage foreign exchange rates in a manner to make sure that exporters maintained competitiveness in world markets adding that the market-driven and trade-weighted exchange policy would continue. "There is no such move to (do) what you alluded to,"he told a reporter who had asked him whether a devaluation was on cards. The State Bank governor, Dr Ishrat Husain said the SBP had so far kept the exchange rates stable through intervention in inter-bank market and it had a right to do so. But he would not challenge the observation made by a reporter that in addition to intervening into the market the SBP had also put in place an informal exchange rate band-currently at Rs 51.95- Rs 52.10 to a dollar. "This is moral suasion. There is no mystery about it,"Husain explained and went on to say that the unusual circumstances the country is passing through call for it. In central banking jargon moral suasion means persuading banks to do what a central bank wants them to do-without saying so in a formal manner. Finance Minister Shaukat Aziz told a questioner that "Ushr will be treated as deductible against agricultural income tax"in the provinces. Details would be announced in the provincial budgets. Talking about transparency in tax administration, the minister said the government would issue a list of tax payers every month showing collection from them in different heads of direct and indirect taxes. Replying a question, he said it was wrong to presume that anti- smuggling drive had been abandoned. He disclosed that in line with its anti-smuggling strategy the government had cancelled 27 out of total 41 licences for diplomatic bonded warehouses. These warehouses were found to have been misused as smuggling channel. About tax reforms, he said the first meeting of proposed tax reform commission was held in Islamabad on Sunday on the arrival of its chairman-designate Shahid Hasan, a former World Banker. He said members of the commission would include federal finance secretary, CBR chairman, one representative each of large and small size businessmen, a nominee of tax bar and a chartered accountant. The minister said UK had shown willingness to offer aid in the shape of technical assistance for carrying out tax reforms. He said a team of British experts had flown in in Islamabad adding that they would shortly start negotiations with the CBR on this subject. Talking about corruption in the Central Board of Revenue and in other government departments, he said the process of flushing out the corrupt would continue. He said suspension of more than 1000 CBR employees on charges of corruption was the beginning of a process adding that a similar exercise would be undertaken at all other departments. Replying a question on the working of National Accountability Bureau, he said cases of bank employees involved in unscrupulous activities would be sent to NAB after screening by the State Bank. The minister said NAB would also need a go-ahead from a high-level committee headed by him before laying hands on businessmen. Replying a question, the minister said that National Finance Commission would meet within six to eight weeks to finalize its recommendations. He said it would be premature to say what formula would be applied for resource distribution under in new NFC awards. The minister who is the arbitrator in Sindh-WAPDA dispute over electricity bills said he would soon hold meetings with the two sides and announce a final verdict. The finance minister said the allocation of Rs 133.5 billion for the defence sector in the 2000-2001 budget represented a 10 per cent increase in absolute terms. But he said that despite this increase in defence budget Pakistan had not moved away from its declared policy of not entering into arms race in the region. He said the increase in defence budget - much lower than that of India (28.5 per cent) - was meant for maintaining a defence capability. Talking about return of F-16 money by the USA, Aziz said the USA government was still examining Pakistan request for repayment of $80 million against F-16 in cash. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000623 ------------------------------------------------------------------- Panjgur power plant starts production ------------------------------------------------------------------- Correspondent QUETTA, June 22: The 45-MW Panjgur Power House has started production with the completion of its construction with a total cost of Rs1.5 billion. The Quetta Electric Supply Company (QUESCO) said here on Thursday that the Chief Executive, Gen Pervez Musharraf would formally inaugurate the project shortly. The test transmission from the unit was conducted on June 17 without load after which power supply to the entire town was started successfully. Following the completion of work related to feed back transmission, electric supply to the entire Makran division from the unit would begin in a few days, the company said. The chairman of Wapda, Lt-Gen Zulfiqar Ali Khan, had lately visited the division and directed the chief executive of Qesco, Brig Agha Ahmed Gul, to take appropriate measures to solve the chronic problem of less power supply to the region. Brig Gul had proposed construction of the power house by utilizing the machinery which was laying idle at the Sheikh Mandah Thermal Power Station. After getting a green signal, work on the project was started under the supervision of Brig Gul who accomplished the task in a record period of a few months. The Qesco chief has appreciated the relentless efforts of the project engineer and his entire team for demonstrating their skills. Greeting people of Makran division, he assured them that the project would cater to their needs at least for 10 years.Back to the top
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EDITORIALS & FEATURES
20000618
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The sole statesman
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Ardeshir Cowasjee
"The government of the United States invariably does the right
thing after having exhausted all other possibilities."So said
Winston Leonard Spencer Churchill, the premier statesman of last
century.
Had Churchill been alive today, and still ruminating over the loss
of the Empire ("I have not become the King's first minister in
order to preside over the liquidation of the British Empire") he
would have said of Pakistan of the year 2000 that the government of
General Pervez Musharraf makes the right noises but too often
swiftly retracts its words when one or more of the unrepresentative
obscurantists of the country voices an objection.
Mohammad Ali Jinnah was a proud man, proud for good reason; by the
overriding force of his indomitable will, and that alone, he carved
out a country for us. Not following the form of his day, Jinnah did
not go to jail for a single day, never embarked on a hunger strike,
did not encourage rowdy protest marches, he abhorred any form of
violence. Liberal-minded and self-confident he did what he liked,
ate and drank what he liked, dressed as he liked, encouraged others
to do the same, held his head high - and kept to his faith.
"Do your duty and have faith in God. There is no power on earth
that can undo Pakistan."This conviction was soon to be proved
wrong. His buoyant optimism and his firm certitude in the future of
this country clouded his perception of the calibre and character of
the leaders who would immediately and later follow him. He failed
to conceive that through their lack of ability, lack of integrity,
their avarice, their unquenchable greed, their hunger for power,
pomp, pelf and position, they would be the undoing of Pakistan.
He was the sole statesman this country has had. Those who followed
were small men, narrow of thought, fearful of others, who grabbed
at today and ignored the morrow. Within a quarter of a century half
of Jinnah's Pakistan was lost. What was left slid swiftly down the
slithery hill. It is now an overpopulated, illiterate, bankrupt
country, the principal aim of its leadership being to fight to
acquire a disputed territory. Its main claim to fame, of which it
rarely ceases to remind the world at large, is its nuclear prowess.
To repeat (and it bears repetition ad nauseam), when Jinnah
addressed the first constituent assembly of the country on August
11 1947 he embodied in his speech the core of his philosophy, his
ideas, and his vision for the state he had founded. It was a fine
piece of rhetoric; too fine, too moral, too democratic, too
liberal, too full of justice, too idealistic for the Philistines.
This speech has been interpreted in many different ways, it has
been subject to distortion, it has inspired fear in successive
governments which would have been far happier had it never been
delivered. It is to the misfortune of the people of this country
that their so-called leaders have refused to live with, or up to,
the principles by which Jinnah wished them to be guided.
It is a matter of national shame that, from top to bottom, the
citizens of this country live in dread of contamination by the
truth - such is the measure of self-deception, insecurity,
disunity, indiscipline, and faithlessness.
On August 11, 1947, before the flag of Pakistan had even been
unfurled, Jinnah told his people and their future legislators :
"You are free, free to go to your temples, you are free to go to
your mosques or to any other places of worship in this state of
Pakistan. You may belong to any religion or caste or creed - that
has nothing to do with the business of the State. As you know,
history shows that in England conditions some time ago were much
worse than those prevailing in India today. The Roman Catholics and
the Protestants persecuted each other. Even now there are some
states in existence where there are discriminations made and bars
imposed against a particular class. Thank God, we are not starting
in those days. We are starting in the days when there is no
discrimination, no distinction between one caste or creed and
another. We are starting with this fundamental principle that we
are all citizens and equal citizens of one state. The people of
England in course of time had to face the realities of the
situation and had to discharge the responsibilities and burdens
placed upon them by the government of their country and they went
through that fire step by step. today, you might say with justice
that Roman Catholics and Protestants do not exist; what exists now
is that every man is a citizen, an equal citizen of Great Britain
and they are all members of the nation. Now I think we should keep
that in front of us as our ideal.....".
[This particular passage has been subject to deliberate distortion
and misinterpretation, inspiring the dishonest dogmatists who
misappropriated the country after his death with such fear and
unease that in the official biography of Jinnah commissioned by the
Government of Pakistan, written by Hector Bolitho, published in
1954, it was censored to falsely read : ".....You may belong to any
religion or caste or creed - that has nothing to do with the
fundamental principle that we are all citizens and equal citizens
of one State..... Now, I think we should keep that in front of us
as our ideal....". (Most of the above passages were ommitted).]
That same August day, he made it clear to the future legislators
and administrators that "the first duty of a government is to
maintain law and order, so that the life, property and religious
beliefs of its subjects are fully protected by the state."He told
them he would not tolerate the evils of bribery, corruption,
blackmarketeering and "this great evil, the evil of nepotism and
jobbery,"the daily bread of powermongers. Little did he know that
day that these prime evils were to become prerequisites for the
survival of the politicians in and out of uniform and of the
administrators of all ranks and grades for the maintenance of their
power.
In a way, it was fortunate that Jinnah did not live long enough to
see the negation of his principles, the perversion of his vision. A
man of high ideals, of impeccable moral and material honesty,
tolerant, open-minded, liberal to the core, a consummate statesman
- his disillusion would have been too great to bear.
This newspaper of record founded by Jinnah carried an editorial on
December 25 1989, his 113th official birthday, headed 'Back to
Quaid's ideals', from which I quote :
"At this juncture, a true appreciation and understanding of the
precepts and practices of the Quaid-i-Azam is crucially important.
His visionary concepts of statecraft could provide the basic
guidelines in charting an unfaltering democratic course for the
nation. What is needed is a revivification of the basic postulates
that the Father of the Nation enunciated in various speeches and
policy statments he made during the struggle for, and imemdiately
after, the creation of Pakistan. A serious effort must be made to
rediscover the essence of his message and vision from the plethora
of twisted interpretation of his acts and utterances. We have been
guilty of passivity in the face of deliberate misrepresentations
and selective distortions of the Quaid's precepts by a whole tribe
of charlatans, pretenders and crafty autocrats to serve their
selfish ends . .. . It was neither theocracy nor feudalism nor
exploitative capitalism that the Quaid ever approved of. What he
basically desired was a sovereign state for the Muslims of the
subcontinent based on the principles of constitutionalism,
democracy, federalism and Islamic social justice in which the civil
liberties and human rights of all citizens would be guaranteed
without any discrimination on any ground whatsoever.. . . . "
Oxford University Press in its Millenium Series has just published
a book of Jinnah's speeches and statements made in 1947-48, with an
introduction by S M Burke, historian and writer, successively an
ICS judge, a diplomat of Pakistan, and Professor and Consultant on
South Asian studies at the University of Minnesota. It is essential
reading for the generals and the others who rule over us from
Islamabad.
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20000623
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The other drought
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Ayaz Amir
BARREN political landscapes there have been before. But this one,
more lunar than earthly, takes the cake. Nothing like it has ever
been seen in Pakistan's history before.
We have had dictatorships in the past but none without a strong and
lively opposition. Something strange has happened this time. The
poverty of dictatorship that we are seeing is about evenly matched
by a poverty of democratic inaction. If Pakistan's military
saviours are in the dark, no better equipped with clarity and
purpose are the putative standard-bearers of democracy.
I have yet to make up my mind what makes me reach faster for my
gun: dispiriting pictures of this government at work or tired
images of the Muslim League, the PPP and the Grand Democratic
Alliance at democratic play. The reformers in this government are
enough to make the stoutest heart quail. The politicos crying in
the wilderness for some role as political extras would not be hired
by a director desperate for free help.
Loonies on the internet (a virulent species which makes one rethink
the advantages of progress) advise me to dispense hope, look on the
brighter side of things and give this government a chance (as if
this government was dependent upon my goodwill, and that of others
like me, for its survival). One of my favourite journalists, the
sharp-winged Masood Hasan, has also 'suggested' - his suggestion
coming with all the gentleness of a mild whiplash - that I should
take time out and write about Brahms, Mozart and Russian tigresses.
A sore point he touches because if I were to write of all the
Tanias and Lauras I saw and missed during my time in Moscow, my
tale of lamentation would be loud and long. Since he talks of
Russian tigresses, has he ever encountered one? To the wise man who
takes his pleasures as they come, let me say only this: he who has
not experienced the bracing climate of old Muscovy has seen
nothing.
But, granted, Masood has a point. One should be cheerful. If anyone
can believe me, I want to be cheerful. Only for this reason do I
look kindly upon the varied products meant for domestic consumption
and export of that famous enterprise in northern Punjab, Murree
Brewery. But, leaving my humility aside, can anyone please tell me
what on the national scene is there to be so cheerful about?If
anyone's idea of fun is General Aziz, Javed Jabbar, General
Moinuddin Haider or the shenanigans passing for accountability
under the aegis of the National Accountability Bureau, I can only
say this is an acquired taste and, in the nature of things, takes
time to be shared with the same avidity by everyone else. We can of
course close our eyes to what is happening and hope that in the end
everything turns out for the best. For such optimism there is a lot
to be said. If things are not to be changed they must be endured (a
piece of wisdom every girl learns as she grows older). In God's
good time everything passes. The statue of every Ozymandias in the
end lies in the dust. But of what consolation is this to the
living?
In the whole of Faiz I have found nothing more fatuous than that
refrain, to which the liberati start dancing, that a time will come
when crowns will roll in the dust. That prospect of future
retribution leaves me cold. If crowns in the dust will make me
happy (of which I am doubtful because with my advancing years I
have come to like the trappings of monarchy) I would like to see
them roll before my eyes.
As for Mozart, Brahms and Russian tigresses, all these are spurs to
movement and action, not quiet aids to resignation and endurance.
Mozart, I concede, blows no loud trumpets. But Brahms? At his
finest he is a summons to action, indeed in the same league with
Beethoven and Wagner. Listen to anything stirring in the concert
hall and you want to be up and about, your feet ready to stamp,
your hands eager to clasp a banner. To be sure, there are quiet,
meditative pieces in the best music, slow movements and funeral
marches in Beethoven and Wagner that are full of introspection and
sorrow. But listen carefully and you will note that even in the
quietest pieces there is a hint of action, a warning of
thunderbolts yet to strike.
If quiet and resignation is what one is seeking then far better to
turn to the solace of our own subcontinental music. Indeed ever
since being able to visit India in March whence I brought back a
load of lilting stuff, I have listened to nothing but the great
Bade Ghulam Ali Khan, Ustad Amir Khan, Malikarjun Mansur, Pandit
Kumar Gandharva, and the sweet and irresistible Kishori Amonkar.
This is not vain name-dropping. Only an attempt to show what in
this country we miss.
If it had been always like this there would have been no regrets.
But it was not. I have it on the authority of the Urdu columnist
Abdul Qadir Hasan that when the great Bade Ghulam Ali Khan was
still here in Pakistan, of an evening he would fortify himself with
a few of the best, or what was available, and come down to the
Lahore railway station where he would walk up and down the length
of the platform quietly humming a tune to himself. What wouldn't it
be worth to have this scene revisited? But the great Ustad did not
remain for long in the cultural desert that we made of our land.
When the opportunity beckoned he fled away.
Since March not once have I listened to the great western masters.
Somehow they do not answer to the mood created by our present band
of Kemalist reformers. After reading the morning papers, an
increasingly irksome chore, and after doing this or that on my
computer screen, I seek forgetfulness and oblivion, not in any wine
that Ghalib would recognize but, in the instruments and voices of
our own music - music once as much ours as anyone else's but now
dead to us just as so much else that was fine and redeeming in our
lives is also dead.
Politics does not exist in a vacuum. It is beaten into shape by a
host of things, foremost among them a people's sense or experience
of culture. If in the collective existence of a people there is no
culture - no rhythm, no poetry, no music - how on earth can there
be balance and proportion - the pre-requisites of democracy - in
their political life? Right at the beginning of Plato's Republic,
one of the persons taking part in the conversation says about
inherited property that it is a great blessing for its possessor
because it frees him from want. In Pakistan we have stood this
principle upon its head. Amongst us not the poor but the most rich
have been the most greedy. For someone suffering from want to be a
thief is understandable - at least up to a point. But for the
chosen of Mammon, which is the case with our governing class
(whether dressed in khaki or mufti), to follow the same path shows
nothing so much as a basic want of culture.
Why then bemoan the absence of inspiring figures in our midst?
Given the climate that prevails across our land, we can only get
the yahoos we see on the national stage. No point in naming names.
Run a thick comb, forget about a fine one, through the serried
ranks of the national leadership and what will you get? Dandruff,
oily matter and other decaying stuff. We keep saying we are a
nation of 140 million souls as if numbers alone can confer
greatness upon a nation. We forget to add that the foremost
qualities of this mass of humanity are philistinism and illiteracy
and, lest our manhood be questioned, an unrivalled talent for
reproduction.
Do I exaggerate? Possibly. But then, pray, point out to me the
outstanding individuals who lend lustre to our fair land: the
artists, musicians, men of letters, or even gymnasts or athletes,
who can give company to the Immortals. Or if this be too severe a
test, let us run another one. Who are the most prominent Pakistanis
these days? Professor Oppenheimer aka Dr A. Q. Khan with his gift
for self-promotion and publicity. His Holiness the President, Rafiq
Ahmed Tarar. Certainly the Redeemer himself. At a stretch a few
faceless generals and a few nondescript ministers. And, sobering
thought, the traders' leader, Umar Sailya, and the most successful
national politician currently on offer, Barrister Sultan Mahmood
Chaudhry of Azad Kashmir, who has already seen off two prime
ministers and is now into his third Pakistani government. Name me
any others and I will stand educated.
We should still be cheerful. No quarrelling with this. But there is
no harm in realizing at the same time that cheerfulness in these
circumstances requires all the stoicism of a Roman army.
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20000624
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Dialogue with Washington
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Afzaal Mahmood
THE first formal engagement between Islamabad and Washington after
the military takeover in Pakistan indicates that a thaw has taken
place and their bilateral relations are now on the mend.
The recent extensive talks between Foreign Minister Abdul Sattar
and Deputy Secretary of State Strobe Talbott on issues of mutual
concern, with focus being primarily on the nuclear issue and
regional security, have taken place after a lapse of 16 months.
First, the Kargil crisis and its aftermath and then the events of
October 12 last year prevented the resumption of formal dialogue
between the two countries. The US's willingness to engage Islamabad
in a formal dialogue on issues of mutual concern is a clear
indication of the appreciation by Washington of the ground reality
in Pakistan by Washington. That augurs well for the future of their
bilateral relations.
Both sides seem satisfied with the tenor of the dialogue. Both
Pakistan and the US have described the talks as "positive,
productive and useful."According to Mr Sattar, the atmosphere was
"very friendly"and he found his interlocutors "empathetic"to
Pakistan's concerns. "Everyone I met looked forward to better
relations between the US and Pakistan."He was, however, frank
enough to admit that Pakistan's relations with the United states
remained "troubled but friendly, at times intense, but always open
to amicable discussion, so that even when crisis seemed to be
impending we have generally been able to achieve a measure of
understanding and accommodation if not concord and agreement."
The nuclear issue and the security situation in the region, in the
context of Pakistan-India relations, appear to have dominated the
discussions in Washington. America urged Pakistan to sign CTBT, and
Mr Abdul Sattar's response was that, while Pakistan believed the
CTBT to be a good treaty, no decision would be taken without a
national consensus. Pakistan's stand on the CTBT, which is no
different from the one adopted by India, was justified by Mr Sattar
on the ground that there was no rationale for quick action since
the CTBT was not likely to come into force in the near future.
Another topic relating to the nuclear issue which came up for
discussion was the Fissile Material Cut-off Treaty (FMCT) which is
being addressed at the Conference on Disarmament in Geneva. While
assuring Pakistan's cooperation on the FMCT, Mr Sattar made it
clear to his interlocutors that the treaty should be non-
discriminatory and verifiable.
Pakistan's views on the FMCT are linked to its assessment of what
it needs for minimum credible nuclear deterrence vis-a-vis India.
Therefore it cannot agree to any demand for a moratorium on the
production of fissile material before the conclusion of the FMCT.
Fissile material consists of weapon-grade plutonium of highly
enriched uranium and constitutes the essential building block of
nuclear weapons. Islamabad is in favour of the FMCT which promotes
both nuclear non-proliferation and nuclear disarmament because
otherwise the treaty would be discriminatory and thus ineffective.
Another point of concern for Pakistan is the unequal stockpiles of
fissile material existing at the global, regional and sub-regional
levels. By cutting off future production of fissile materials,
without taking into account the existing stockpiles at the global,
regional and sub-regional levels, FMCT will be freezing a situation
of nuclear imbalances and creating more security problems than
solving.
At his press conference in Washington, after his talks with Strobe
Talbott and Secretary of State Madeleine Albright, Sattar dealt
with the question of US sanctions against Pakistan. He called for
the lifting of these sanctions as some of these singled out
Pakistan and were thus not consonant with friendly relations. He
hoped that the United States government and Congress would review
the Pakistan-specific sanctions and adopt a more general, even-
handed and balanced stance on the issue.
The two sides also discussed Pakistan-India relations and the
continuing tension over Kashmir between the two countries. The
increasing confrontation between New Delhi and Islamabad and the
danger it poses to stability in the region must have figured
prominently in the talks. Despite the US prodding for a more
flexible approach, India has refused to talk to Pakistan unless its
conditions are fulfilled. It is unfortunate that New Delhi has even
rejected Pakistan's June 14 offer relating to a strategic restraint
regime in both the nuclear and conventional fields on "a reciprocal
basis."The Pakistani offer to consider any restraint arrangement
on a reciprocal basis aims at avoiding a nuclear conflict or an
arms race, nuclear and conventional, and at promoting confidence-
building in South Asia.
It may be recalled that the strategic restraint regime offer of
June 14 was first made by Pakistan during the October 15-18, 1998,
foreign secretary-level talks held in Islamabad. Nuclear risk
reduction measures came up for discussion during Mr Vajpayee's
Lahore visit and the memorandum of understanding signed by the two
foreign secretaries on February 20, 1999, sought to ensure that the
two sides would engage in bilateral consultations on security
concerns and nuclear doctrines with a view to "developing measures
for confidence-building in the nuclear and conventional fields,
aimed at avoidance of conflict."
By terming the Pakistani offer of June 14 as a "propaganda"ploy,
the Vajpayee government has wasted one more opportunity to bring
the two countries back to the negotiating table through a
resumption of bilateral talks. It is strange that while the
Vajpayee government was prepared to discuss with Islamabad a
strategic restraint regime in the nuclear and conventional fields
in October 1998 and February 1999, it is not prepared to do so now.
New Delhi has already rejected General Pervez Musharraf's offer of
resuming the dialogue on contentious issues without any
preconditions. Now by rejecting the June 14 offer, which was in
fact in conformity with the Lahore Declaration, New Delhi has
declined to remove a tool of mutual annihilation in potentially
dangerous situations in times of tension or conflict. The rejection
of that offer makes little political or strategic sense.
A dialogue on a strategic restraint regime can enable India and
Pakistan to move towards conflict avoidance and confidence-building
which in turn, will promote peace and security in the region. In
rejecting it the intention apparently is to avoid any meaningful
contact with Pakistan which might force the pace for a broader kind
peace and normalization talks between the two countries which India
wants to avoid at this stage.
If the political compulsions of Mr Vajpayee do not allow him to
hold talks with Pakistan on the Kashmir issue, wisdom and common
sense demand that the two countries should at least initiate a
security dialogue on the nuclear issue to achieve a modus vivendi
and develop the ground rules for coexistence in the nuclear era.
Recognizing its responsibilities in the region, New Delhi should
give up its present non-engagement stance towards Islamabad and
acknowledge the fundamental fact that if the possibility of a
catastrophe in a nuclear-armed subcontinent is to be avoided, there
is no alternative to dialogue and detente between India and
Pakistan.
=================================================================== SPORTS 20000622 ------------------------------------------------------------------- Razzaq youngest bowler to record Test hat trick ------------------------------------------------------------------- GALLE (Sri Lanka), June 21: Abdur Razzaq became the youngest player to claim a Test match hat trick as the last six Sri Lanka wickets tumbled for just 18 runs on the opening day of the second Test against Pakistan on Wednesday. Sri Lanka were all out for 181, Pakistan replying with 74 for two by the close. Medium pacer Razzaq, 20, took the wickets of Romesh Kaluwitharana for four, Rangana Herath and Ravindra Pushpakumara. He became only the second Pakistan bowler to achieve the feat after Wasim Akram who has claimed hat tricks twice against Sri Lanka. The Sri Lankan innings fell apart after a 116-run fifth wicket partnership between Mahela Jayawardene and Ranatunga had been broken. Jayawardene made 72 and Ranatunga 51. Ranatunga was run out and Jayawardene, who hit one six and eight fours in his 194-minute knock, was caught at slip. In the first session to play, Waqar Younis ripped through the Sri Lanka top order, reducing them to 67 for four. Marvan Atapattu was Waqar's first victim. He was caught behind for one with the score on 13. Waqar then struck two further blows, dismissing Russel Arnold for five and Aravinda de Silva for four to claim figures of three for 25 from nine overs.-Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000619 ------------------------------------------------------------------- Rashid offers to testify at Cronje hearing ------------------------------------------------------------------- KARACHI, June 18: Former Pakistan cricket captain Rashid Latif on Sunday said he would record a statement at the South African inquiry into match-fixing allegations if his testimony was sought. "It will be an honour for me because if I can help eradicate the malice from cricket I will leave no chance,"Latif told AFP. Reports from South Africa suggested Latif and Indian captain Mohammad Azharuddin may be called by a commission probing corruption in cricket. The commission has heard a confession over bribe-taking from sacked South African captain Hansie Cronje. "Cronje's confession was not full because he has hidden some names. He should have named Australian players who are also involved," Latif said. The 30-year-old Latif led a crusade against match-fixing in Pakistan, alleging involvement of teammates. "For me match-fixing in Pakistan is history and players have been punished, I am satisfied, but its now the turn of other countries to take the matter seriously,"he said.-AFP ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
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