------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 11 March 2000 Issue : 06/11 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from 
Pakistan's largest English language newspaper, the daily DAWN. DWS 
offers news, analysis and features of particular interest to the 
Pakistani Community on the Internet.

Extracts, not exceeding 50 lines, can be used provided that this 
entire header is included at the beginning of each extract. 

We encourage comments & suggestions. We can be reached at: 

     e-mail        dws-owner@dawn.com
     WWW           http://dawn.com/
     fax           +92(21) 568-3188 & 568-3801 
     mail         DAWN Group of Newspapers 
                   Haroon House, Karachi 74200, Pakistan 

Please send all Editorials and Letters to the Editor at
                   
                   letters@dawn.com

(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 2000

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 


CONTENTS ===================================================================
NATIONAL NEWS + Nawaz's counsel assassinated + Shahbaz Sharif denies charges + CE backs Kashmir struggle: Security threats in region discussed + United States to issue more visas + Pakistan Muslim League moves to choose new President + Punjab not to deal with unlisted IPPs + Seminar told: Supreme Court ruling on Riba to be implemented + Missing boys are alive, claims Javed + Except Ejaz, all counsel agree to defend Nawaz + Govt cautious on privatization --------------------------------- BUSINESS & ECONOMY + Pakistan, Turkey to set up trading co + Three-year rolling plan to initiate new projects + 10% increase in drug prices likely + Economic Coordination Committee sets tobacco support prices + Central Board of Revenue may withhold refunds + Another IPP signs MoU with WAPDA on tariff cut + Textile exports up by 11.5% + 35% duty on 21 items of construction + First 3000-Horse Power railway engine rolls out of factory + Hubco moves to settle row with WAPDA --------------------------------------- EDITORIALS & FEATURES + The ramparts of Pakistani pride Ayaz Amir + War or peace Irfan Husain ----------- SPORTS + Miandad takes over as coach + The Pakistan Cricket Board denies making appointments + Security measures for third Test + Yousuf, Saleh to play in Asian snooker

=================================================================== 
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 
=================================================================== 
NATIONAL NEWS
20000311 
-------------------------------------------------------------------
Nawaz's counsel assassinated 
-------------------------------------------------------------------
Sarfaraz Ahmed

KARACHI, March 10: One of the counsel for Nawaz Sharif in the plane 
conspiracy case, Iqbal Raad, and two others were gunned down by 
three unidentified people at his practice chambers on Friday 
afternoon.

Shahzad Adil Khatri, son of the late Sindh High Court judge Adil 
Khatri, and an office peon were also killed with Iqbal Raad in his 
office in the multi-storey Paradise Chambers near the High Court 
building on Shahrah-i-Iraq. The peon, Ghulam Abbas, who hailed from 
Ranipur, had joined Iqbal Raad only three days ago.

Iqbal Raad, from whose office a some unknown persons had stolen the 
fax machine and other equipment a fortnight ago, died of a 
kalashnikov burst while he was in his seat, and the bodies of 
Khatri and Ghulam Abbas lay just outside the internal door of 
Raad's offices.

Iqbal Raad, in his mid-50s, who has left behind his wife, three 
sons and one daughter, had been holding the post of advocate-
general of Sindh until the Nawaz Sharif government was dismissed 
last year. Before being appointed AG, Mr Raad had showed interest 
in organizing the lawyers under the PML's legal wing.

According to witnesses, three men went up to the office of Mr Raad 
on the second floor, after alighting from an beige-coloured Alto 
car, and sprayed all the three with Kalashnikov and TT pistol 
shots.

The witnesses said that soon after they had completed their 
operation, the killers climbed down the stairs and pulled up the 
car to flee the scene.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000310 
-------------------------------------------------------------------
Shahbaz Sharif denies charges
-------------------------------------------------------------------
Reporter

KARACHI, March 9: Final arguments by the prosecution in the Oct 12 
plane hijacking case against Nawaz Sharif and six others will 
commence on March 13 as Shahbaz Sharif, the last accused, 

recorded his statement in the anti-terrorism court-1 on Thursday.

Judge Rahmat Hussain Jafferi fixed three days (from March 13 to 15) 
for arguments to be offered by the prosecution. Among others 
Advocate-General Raja Quershi, and special public prosecutors Ilyas 
Khan and Barrister Zahoor represented the prosecution. The defence, 
represented by Khwaja Sultan, M.A. Malik and Justice (retd) Aftab 
Farrukh, will give its arguments from March 20 to 22.

At the outset of the hearing, the judge called Shahbaz Sharif, the 
former chief minister of Punjab, in the witness box. When the judge 
asked him why the witnesses for prosecution were deposing against 
him, Shahbaz said that they (witnesses) had done so because they 
all were government servants and they had been tutored and tortured 
to do so.

He went on to say that Colonel Khan had served him with a warrant 
of arrest on Nov 23 and told him to arrange a lawyer and contact 
his family. "However, I was not allowed to contact my family."

Later, Mr Shahbaz deposed before the court that he had arrived at 
the Prime Minister's House in the morning on October 12. He said he 
had a scheduled meeting with the then interior minister and a 
notification to this meeting, which was attended among others by 
the then chief minister of the NWFP, had been issued on Oct 7. He 
said the meeting ended at 2:30pm.

Later, Mr Shahbaz continued, he had a scheduled meeting with the 
ambassador of Japan and added that after this meeting, he came back 
to the PM's House and slept in his bedroom. He said he was still 
sleeping when the army entered the PM's House. He said a bedroom 
and an office had been allotted to him in the PM's House where he 
held official meetings. He said he was taken into custody by the 
army in his bedroom.

Mr Shahbaz said he was kept in solitary confinement for 42 days in 
Rawalpindi and Murree to desist him from assisting his brother 
(Nawaz Sharif) in arranging his defence and also to file an appeal 
in the apex court against the military takeover in his capacity as 
chief minister of Punjab and being an aggrieved as CM with "Prime 
Minister Nawaz Sharif".

Mr Shahbaz said he did not know about the charges leveled against 
him by the prosecution and the reason for his detention until he 
was produced before this court.

He said the prosecution had miserably failed to establish its case 
against him and added that he was not even named in the FIR, which 
was lodged with a delay of 28 days. "My name was included in the 
case after two weeks as an afterthought and it shows that the 
prosecution has no incriminating evidence whatsoever against me," 
he said.

He said that Lt-Col Atiquzzaman Kiyani, the complainant in the 
case, had stated in this court that even after interrogating as 
many as 150 people from different agencies he (the colonel) could 
not "find an iota of evidence" against him. "This fully exposes 
hollowness of the case of prosecution. I throw myself at the mercy 
of the court," he concluded.

At this point, the advocate-general rose and drew the attention of 
the court to the testimony of prosecution witness Brig Javed Iqbal 

which, he said, inter alia mentioned that Shahbaz along with 
Chaudhry Nisar was standing at the lawns of the PM's House and he 
(Shahbaz) was talking by a mobile phone.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000310 
-------------------------------------------------------------------
CE backs Kashmir struggle: Security threats in region discussed 
-------------------------------------------------------------------
Ihtasham ul Haque

ISLAMABAD, March 9: A joint meeting of the National Security 
Council and the cabinet discussed here on Thursday the growing 
threat perceptions in the region and decided that the President 
Bill Clinton would be briefed about the hegemonic designs of India.

According to official sources, Chief Executive Gen Pervez 
Musharraf, who presided over the meeting, said it would be a good 
opportunity to brief the US president about the latest situation 
obtaining in the region. He said Pakistan did not want to enter 
into the arms race by unproportionately increasing its defence 
budget as had been done by India.

The sources said the chief executive also told the meeting that 
there was a need to inform the international community about the 
difference between terrorism and freedom movement. He said time had 
come when the people should know that fighting for the cause of 
freedom did not mean terrorism. He said India had always tried to 
mislead the international community about the freedom movement of 
the Kashmiris and wrongly termed it an act of terrorism.

According the sources, the chief executive, who came half an hour 
late to the meeting because of an interview to a foreign newspaper, 
said Pakistan would continue to offer all kinds of political, moral 
and diplomatic support to the people of occupied Kashmir.

According to a handout issued after the meeting, the CE said 
Pakistan "condemns all sorts of terrorism, including irresponsible 
statements and actions that are indicative of a terrorist mind-
set." While rejecting the Indian media propaganda against Pakistan, 
he said the liberation movement in occupied Kashmir was totally 
indigenous.

The UN is committed to enforcing for the people of occupied Kashmir 
their right to self-determination, but successive Indian 
governments had consistently been denying this right to them.

Pakistan, he said, was extending moral, diplomatic and political 
support to the people of the Kashmir Valley who "are victims of 
state terrorism by the Indian occupying forces."

Gen Musharraf told the joint meeting, which was also attended, on 
special invitation, by the four governors, that the Line of Control 
was spread over a porous mountainous region and despite "our best 
efforts it was not possible to stop movement of people in such a 
large area. "If over 700,000 Indian troops in occupied Kashmir, 
who, according to the Indians, are there to stop infiltration, 
cannot do so, why blame Pakistan," he remarked.

With the exception of India, Gen Musharraf said, Kashmir had been 
universally recognized as the core issue hampering good relations 
between India and Pakistan, thus impeding peace, tranquillity and 
economic development in the region. "Our country welcomes all steps 
towards resolution of the dispute, including the third party 
mediation," he added.

Abbas Sarfaraz, minister for housing and works, made a presentation 
on the housing programme at the meeting which approved the 
completion of 18 commercially viable projects spread all over the 
country. The marketing of these projects will be done through 
banking institutions, which would invite applications through media 
and process the same in a transparent manner.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000311
-------------------------------------------------------------------
United States to issue more visas
-------------------------------------------------------------------
Shaheen Sehbai

WASHINGTON, March 10: A Senate committee on Thursday approved a 
sharp increase in hi-tech visas for foreign workers in the US for 
three years and lifted visa restrictions for those who have 
obtained high degrees from the US universities.

The move, likely to be approved by the full senate and the House of 
Representatives, will provide job opportunities to thousands of 
computer technicians from developing countries like India and 
Pakistan.

The Senate Judiciary Committee increased 'H-1B' visa number from 
115,000 to 195,000 a year. The bill would also ease restrictions 
from the foreigners who use visas to work in US universities and 
persons who have recently received advanced degrees from US 
universities.

"The bottom line here is that US high-tech companies are struggling 
to fill cubicles with capable and educated workers," Senator Orrin 
Hatch, chairman of the committee, said at a committee meeting.

"A Computer Technology Industry Association study concluded that 
this shortage of information technology professionals is costing 
the US economy $105 billion a year," he said, adding "we can 
prevent that loss by passing this bill."

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000311 
-------------------------------------------------------------------
Pakistan Muslim League moves to choose new President
-------------------------------------------------------------------
Faraz Hashmi

ISLAMABAD, March 10: Around 50 members of Pakistan Muslim League 
Friday moved towards a consensus on the question of replacing the 
party president, the party sources said.

They agreed to immediately convene a meeting of the PML 
parliamentary party in the suspended National Assembly to further 
discuss the proposal of replacing Nawaz Sharif as the party chief 
or from the office of the parliamentary party leader.

The meeting, convened at the residence of Syed Fakhr Imam, also 
decided to set up a committee which would meet Mr Sharif in jail 
and persuade him to voluntarily step down from the party president 
ship.

"The discussion has started," said Abida Hussain when asked whether 
there was any move to replace the party president. "Obviously we 
are not a bureaucracy, we are a political party and such decisions 
take time," she added.

Abida said only the members of the parliamentary party would be 
called at the next meeting, as the Senate would cease to exist 
after March 20.

Though majority of pro-Sharif members was present at the meeting, 
some fiery speech against him and his style of governance were 
heard, while his supporters kept mum, a member present at the 
meeting said.

Fakhr and Abida had invited only 30 members but some Sharif 
supporters turned up at the meeting uninvited with a motive to 
stall the move of replacing him, sources said.

However, most of the pro-Sharif members seemed convinced that 
change in the party leadership had become inevitable and they could 
not resist it any more, they added.

Fakhr at a press briefing at the end of the meeting read out a 
resolution unanimously adopted by the participants.

It read: "Fifty members of the National Assembly under suspension 
met at the residence of Syed Fakhr Imam and decided that the entire 
parliamentary party of PML will assemble shortly to further discuss 
the issues facing the country and the party.

"While reiterating their adherence to democratic norms and their 
commitment to democratic values and principles all the members 
emphasized on the party unity and laid to rest all speculations 
regarding any split in the PML."

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000307 
-------------------------------------------------------------------
Punjab not to deal with unlisted IPPs
-------------------------------------------------------------------
Shaukat Ali

LAHORE, March 6: Punjab will not purchase electricity from those 
independent power producers (IPPs) which are not registered with 
the Wapda, sources told Dawn here on Monday.

Wapda had appealed to the provinces and commercial organizations 
not to use the power produced by IPPs which had not obtained 
permission from it.

Referring to a recent Wapda report, the sources said there were 
about 38 IPPs producing power and selling it to various 
organizations. Many of them are using Wapda's distribution network, 
as well.

"Under the rules only Wapda is allowed to handle the power 
distribution system or those IPPs which have obtained permission 
from the authority for this purpose", they said. It is believed 
that the IPPs, which are producing power primarily to supply to 
nearby industries, are at present supplying around 730MW power to 
other subscribers.

"This is a serious breach of the electricity act which empowers 
only Wapda to generate power, or allow the private producers who 
explicitly seek a permission from it. No other agency is allowed to 
indulge in this business", Wapda sources said. It is understood 
that Wapda is facing a net loss of about Rs900 million because of 
the power business being undertaken by the IPPs not registered with 
Wapda.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000309
-------------------------------------------------------------------
Seminar told: Supreme Court ruling on Riba to be implemented
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, March 8: Finance Minister Shaukat Aziz said on Wednesday 
that the Supreme Court's judgment on Riba would be implemented in 
letter and spirit to introduce a interest-free banking in the 
country.

"A high-powered commission headed by I.A. Hanfi (the former 
governor of central bank) is finalizing its recommendations to 
bring every thing under the Islamic mode of financing," he said.

Speaking at the concluding session of a seminar organized by the 
Institute of Policy Studies, he said: "Islamic banking is a well-
known phenomenon in the world". He termed the SC's judgment 
(against Riba) landmark.

"Pakistan is the only country in the Muslim world which is going to 
have an interest-free banking," he said, adding that the whole 
legal framework needed restructuring for the purpose.

"Undoubtedly, it is a big challenge facing the government to have 
every thing interest-free," the minister said.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000309
-------------------------------------------------------------------
Missing boys are alive, claims Javed
-------------------------------------------------------------------
Reporter

LAHORE, March 8: Javed Iqbal, the alleged killer of 100 children, 
on Wednesday submitted before the trial court that the missing 
children were alive and that he did not murder any boy.

Replying to questions put to him by the court comprising Additional 
District and Sessions Judge Allah Bakhsh Ranjha, he said not a 
single boy was murdered. The accused submitted a written statement 
spread on 20 pages in the court. He said the statement contained 
his complete version about the issue.

The statements of all the four accused were recorded and the case 
was adjourned for final arguments. All the accused denied having 
killed anybody.

The accused said the judicial confession was recorded under duress. 
Javed Iqbal said he staged this "tragedy" to highlight the issue of 
runaway children of poor families who become victim of evil people.

Regarding the whereabouts of the missing boys, the accused said it 
was the police's responsibility to find them. He wrote on page No 
eight of the statement that the children disappeared due to the 
treatment by their families and were living with different people 
and 'surely' were compulsive homosexuals. He writes some children 
have returned to their homes but their parents are silent about it. 
He said it is the responsibility of the police to find the children 
who are still missing.

He said four people out of the 100 presumed as missing could be 
proved to be alive. He said three of these children were his co-
accused, Sajid, Sabir, and Nadeem, in the case. Another of them 
lived in Shadbagh and their photographs were among those of the 
hundred missing children. He said he was told by one of his 
friends, Ishaq Billa, who died in police custody during 
investigation of the case, that the fourth boy was also one of the 
100 children. He said Ishaq's son could recognize the boy and he 
could be summoned by the court for confirmation of the fact.

Regarding the judicial confession said to have been recorded by 
them before a judicial magistrate and the fact they were warned 
that the confession could be used against them, the accused said 
they were under pressure from the police and feared they would be 
killed in a police encounter if they did not make a statement 
before the magistrate as directed by them. They said they simply 
replied in affirmative to the suggestions made by the magistrate 
who read out a statement to them.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000305 
-------------------------------------------------------------------
Except Ejaz, all counsel agree to defend Nawaz
-------------------------------------------------------------------

KARACHI, March 4: All defence counsel, except Ejaz Battalvi, have 
agreed to defend ousted Prime Minister Nawaz Sharif and six others 
charged in the PIA plane hijacking case being proceeded in the 
Anti-Terrorism Court (ATC-1), headed by Rehmat Hussain Jaffery.

Leading defence counsel Ejaz Battalvi, Khawaja Sultan, Iqbal Raad 
and Khawaja Naveed had withdrawn from the case after the order by 
the ATC, imposing restriction on issuing statements of accused 
Nawaz Sharif and others before the scrutiny of the court. However, 
the court had made it clear that the accused might record their 
verbal statements after scrutiny of their written statement.

The defence counsel met Nawaz Sharif, Shahbaz Sharif, Syed Ghous 
Ali Shah, Shahid Khaqan Abbasi, Saifur Rehman, Rana Maqbool, and 
Saeed Mehdi twice in the Landhi jail on Thursday and Friday and 
discussed the situation with them as directed by the court.

Khawaja Sultan agreed to defend the accused before the ATC, but 
Ejaz Battalvi could not be persuaded by the accused and their 
family members. Ejaz Battalvi said he would remain defence counsel 
in this case and help their juniors, but would not appear before 
the ATC on Monday.

Khawaja Naveed and Iqbal Raad said Khawaja Sultan could not meet 
Judge Rehmat Hussain Jaffery on Friday and Saturday. Meanwhile, the 
proceedings of the PIA plane hijacking case would resume on Monday 
before the ATC-1 for recording of spools of PIA flight PK-805 of 
Oct 12,1999 in which Army Chief General Pervez Musharraf and about 
200 passengers were flying in from Sri Lanka. - PPI

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000310 
-------------------------------------------------------------------
Govt cautious on privatization
-------------------------------------------------------------------

ISLAMABAD, March 9: Indebted Pakistan has no plans to sell its 
assets hurriedly and will aim to get the maximum benefit from any 
sale, a government official said on Thursday.

"The entire (privatization) process should continue at its own pace 
... If you try to speed it up on your own, then there is a cost to 
it, there is no free lunch," said Altaf Saleem, chairman of the 
Privatization Commission.

Pakistan has privatized very little over the past two years because 
of a change of government and what officials said were unfavourable 
market conditions.

"Because we are dealing with national assets, it has to be 
realistic, it has to be cautious," Saleem said.

Since assuming power on Oct 12, military ruler Gen Pervez Musharraf 
has made privatization a key priority of his government but has 
promised that the process would be transparent and in the security 
interests of the country.

Saleem said Pakistan State Oil, country's largest petroleum 
distribution company, was under-going restructuring as first step 
towards privatization.

"In Sui Southern and Sui Northern lot of work had already been 
done, and now with the gas regulatory authority in place, these are 
a step closer to privatization," Saleem said.

Pakistan plans to sell between five and 10 per cent of the two gas 
distribution utilities as a first step towards privatization.

"We have initiated the process of appointing a lead manager and on 
April 10 they will give us a timeframe ... We are targetting that 
this should happen in May or June," Saleem said.

He said Pakistan also plans to hold roadshows in the Middle East in 
April to market the proposed privatization of some oil, gas, power 
and financial assets.

Saleem said the government was also preparing a privatization law 
to give a legal framework to the sale process and to protect 
transactions from unnecessary litigation. The law was expected to 
be approved next month.

"It was not that the process of privatization had a problem. It was 
that there was no legal cover," he said.-Reuters


=================================================================== 
 BUSINESS & ECONOMY
20000307 
-------------------------------------------------------------------
Pakistan, Turkey to set up trading co
-------------------------------------------------------------------
Reporter

KARACHI, March 6: Pakistan and Turkey can explore the possibility 
of establishing a Joint Marketing Company to access the markets of 
Europe and Central Asia and at the same time boost the bilateral 
trade.

The suggestion was made by President of FPCCI Fazal-ur- Rehman 
Dittu during a meeting with a 13-member Turkish delegation on 
Monday at Federation House.

The delegation comprised businessmen dealing in textiles, leather 
and leather products, marble, furniture and woodwork, automotive 
parts and construction.

The president FPCCI further suggested that as textile exports from 
Turkey to the European Union will be free from any quota 
restriction, both the countries could establish joint collaboration 
with Pakistan supplying cotton yarn or fabrics for further 
processing and value-addition in Turkey.

He also hinted at joint marketing of textiles, leather, chemicals, 
automotive parts, pharmaceuticals and other items to invest in 
Pakistan in the fields of construction, medical equipment, 
infrastructure, transport, textiles, communication, mining, 
irrigation and tourism.

Dittu pointed out that lack of direct shipping was a major hurdle 
in boosting the two-way trade and said that Pakistan's exports to 
Turkey had declined from $69.96m in 1997-98 to $37.52m in 1998-99.

The leader of the Turkish delegation agreed with the suggestion put 
forward by the president FPCCI that joint efforts needed to be 
undertaken as the bilateral trade did not commensurate with the 
depth of relations existing between the two countries.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000307 
-------------------------------------------------------------------
Three-year rolling plan to initiate new projects
-------------------------------------------------------------------
Ihtashamul Haque

ISLAMABAD, March 6: The government has decided to start a "three 
years rolling plan" to complete important existing development 
projects as well as to undertake new projects in the absence of 9th 
Five Year Plan.

Official sources told Dawn here on Monday that the 9th Five Year 
Plan will continue to be held in abeyance and will be replaced by a 
three-year rolling plan now being finalized jointly by the 
officials of the ministry of finance and the Planning Commission. 
The plan was expected to be ready by April this year.

The 9th plan could not be completed despite the fact that two years 
have already passed due to various reasons including inter-
provincial differences and centre/ provinces dissimilarity of views 
on many issues.

The sources said that the construction of controversial Kalabagh 
Dam has been a major subject of discord with the provinces 
specially Sindh and NWFP which in fact delayed the finalization of 
the 9th plan. Both these provinces, sources said, had been raising 
serious objections over the proposed huge financial allocation for 
Kalabagh Dam. The issue was reportedly taken up in the last meeting 
of the National Economic Council (NEC) which was presided over by 
the ousted prime minister Nawaz Sharif where no consensus could be 
developed whether to start or abandon the project.

The military government, sources said, has not decided any thing 
over the issue, with the result the launching of the 9th plan was 
further delayed and a decision taken to formulate a three-year 
rolling plan.

The sources said that the paucity of resources was another reason 
that delayed the initiation of the 9th plan. Further decision has 
been taken that the size of the Public Sector Development Programme 
(PSDP), which had already been cut from Rs 116 billion to Rs 100 
billion, will not have anymore reduction despite the opposition by 
the officials of the ministry of finance. These officials said that 
since the funding position of the government was weak, the PSDP 
should be further slightly thinned. "Almost 96 per cent funds for 
PSDP and other development programmes are being provided by the 
foreign agencies and still some people are insisting to further cut 
the size of the PSDP", a source said. The problem, he said, was 
compounded when the government decided to have additional funds for 
poverty reduction programme for which Rs 15 billion had already 
been allocated and provinces given Rs 3.4 billion out of it.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000307 
-------------------------------------------------------------------
10% increase in drug prices likely
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, March 6: The Economic Coordination Committee (ECC) of 
the cabinet reportedly agreed to the health's ministry's proposal 
for raising drug prices by 10 per cent at its last meeting.

However, the ECC decided to refer the matter to the cabinet for a 
final decision, it is learnt. Official sources told Dawn that the 
committee had considered the proposal of the health ministry for 
the upward revision of drug prices.

The participants of the meeting were asked not to discuss the 
matter with media persons until a final decision was taken by the 
cabinet. The spokesman for the health ministry, Matiullah Khan, 
denied to have any information on the subject. He said he did not 
even know if the ECC had considered the issue.

The spokesman for the cabinet division, Zafar Iqbal, declined to 
divulge the recommendations of the committee. However, Health 
Director General Maj-Gen Ahsan Ahmed said the matter of drug 
prices' adjustment had been discussed by the ECC, but, he 
maintained, its reporting in newspapers at this stage would be a 
speculation.

Sources said that in its proposal the health ministry had referred 
to the pharmaceutical industry's demand of raising the prices of 
drugs by 26 per cent. They added that this increase was calculated 
on the basis of rise in US dollar's exchange rate against Pakistan 
rupee since 1995 when the drug prices had been last raised.

The ECC was told that the international pharmaceutical companies 
were running in loss as they were not allowed to increase drug 
prices. Some, it was said, were even winding up their business.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000309
-------------------------------------------------------------------
Economic Coordination Committee sets tobacco support prices
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, March 8: The Economic Coordination Committee of cabinet 
(ECC) approved here on Wednesday new support prices of tobacco for 
different varieties of the 1999 crop.

The minimum support price for Fine Cured Virginia type has been 
fixed at Rs 33.04 per kg, White Patta Rs 14.30 per kg, Dark Air 
Cured Virginia Rs 11.97 per kg and Burley Rs 26.04 per kg.

The meeting, which was presided over by Minister for Finance 
Shaukat Aziz also reviewed in detail the latest economic data 
relating to trade, CBR's tax collection and monetary developments.

On the basis of the February trade figures, exports were seen to 
have increased by 13% and imports were down by 8% over the previous 
month. Compared to the corresponding 8 months of the previous year, 
exports were up by 9.7 % and imports were up by 13%.

For the month of February, the trade balance was negative by 93 
million dollars compared with over 120 million dollars in February, 
1999 and a negative balance of 256 million dollars in January this 
year.

The ECC noted that the major increase in imports was due to the 
extra-ordinary increase in POL prices in the last few months. 
Import prices for major POL products have increased by more than 
100% in the last 12 months.

State Bank governor Dr Ishrat Hussain briefed the ECC about 
monetary developments and informed the committee that from July 1, 
1999 to February 2000 the monetary growth was below the target for 
the year and was expected to remain within manageable proportions 
and the overall monetary position was satisfactory.

The CBR chairman briefed the ECC about the revenue collection 
during the current fiscal.

The ECC was informed that Rs209 billion was collected till February 
2000 against the target of Rs362 billion for the full year. This 
indicated an increase of 18.4% over the same period last year.

Keeping in view seasonal trends, the CBR expects to achieve its 
target. As announced in the chief executive's policy in mid-
December, CBR has accelerated genuine refunds in order to minimize 
corruption. 

 The refunds made by CBR were 18% higher than the corresponding 
period of last year and in February only the CBR made refunds of 
about Rs6 billion.

The ECC was presented a detailed report on the prospects for sugar 
production in the country. The committee expressed its concern on 
the increasing trend of sugar prices. The committee directed the 
concerned agencies to monitor the situation periodically and to 
bring it to the ECC regularly in its meetings in the coming weeks.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000309
-------------------------------------------------------------------
Central Board of Revenue may withhold refunds
-------------------------------------------------------------------
Correspondent

ISLAMABAD, March 8: Central Board of Revenue is projecting to 
collect Rs360 billion in the current financial year, and has in 
eight months collected Rs210 billion. It still needs to collect 
Rs150 billion (at the rate of Rs38 billion per month), if no 
further downward revision is allowed by the government in the tax 
target for 12 months.

CBR is facing an uphill task of collecting Rs38 billion per month 
during March-June, and the board is working on a plan to control 
refunds payment and speed tax-arrears collection.

The need for these actions has been stressed by the CBR in their 
latest communications with the customs collectorates and income tax 
commissionerates.

The first downward revision about a month ago brought down the 
current financial year's tax collection target from Rs380 to Rs360 
billion. The CBR is now devising a strategy to curtail slippages in 
the collectible deposits of federal revenues, to ensure that these 
deposits do not slump and lead to requesting for another downward 
revision in the year's collection target. The finance minister has 
recently urged CBR to apply all possible means to meet the revised 
target.

The strategy to curtail slippages is being chalked out in the light 
of decisions taken at two meetings held a fortnight ago at the CBR. 
These meeting, one chaired by the finance minister and the other by 
chairman CBR, deliberated on refunds and arrears of sales tax and 
income tax departments.

The finance minister advised the Income Tax Department to pay out 
in 90 days Rs15 billion refund-assistance sanctioned by the 
government for export manufacturers. But at the same time the 
income tax and sales tax departments have been asked to curtail the 
slippages through refunds.

The income tax regional commissioners, at their February 8 meeting 
decided that a refund target review be conducted for the rest of 
the financial year. The IT regional commissioners in this 
connection decided that the quantum of pending refund claims be 
processed within March 2000.

Apart from this, a departmental monitoring of refund-clearance 
process is being put in place, which would also be processing the 
above Rs200,000 claims. The finance minister had asked the IT 
department during the February 13 meeting to speedily clear the 
large-amount claims of exporters, out of the Rs15 billion federal 
refunds fund.

The IT Department is also computing figures of refunds clearance 
through the recently created Inter-Tax Adjustment System. This is 
being done to be prepared for monthly coordination with other 
departments which is meant to determine as to how much amount of 
the refunds released through this system has been put under 
observation.

The under-observation refunds amounts have been on the rise over 
the current financial year and it has now been decided that the 
inter-departmental coordination be improved for dealing with claims 
which can be placed under the category of "excess" or "undue". To 
make this process efficient, the IT and ST departments are also 
stepping up their audit efforts.

Though the new laws do not allow the two departments' officials to 
conduct audit visitation to the business places of the assessees 
for more than once in six months, the IT Department is planning to 
launch an on-the-spot assessment of all the new claims.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000305 
-------------------------------------------------------------------
Another IPP signs MoU with WAPDA on tariff cut 
-------------------------------------------------------------------
Reporter

LAHORE, March 4: Yet another IPP has signed a Memorandum of 
Understanding (MoU) with WAPDA for reduction in its levelized 
tariff to US Cents 5.137 per kilowatt hour (KWH).

Wapda Chairman Lt-Gen Zulfiqar Ali Khan and Fauji Kabirwala Power 
Company Limited Managing Director/Chief Executive Lt-Gen (retd) 
Muhammad Maqbool exchanged the authenticated documents on behalf of 
their respective organizations at WAPDA House on Saturday.

It is the 12th IPP which has voluntarily reduced its tariff from US 
cents 5.578 per KWH to US Cents 5.137 per KWH.

The revision of tariff will result in total saving of US $ 156 
million over a period of 30 years. The project is based on low BTU 
and pipeline gas in Kabirwala near Multan. The plan has a capacity 
of 157 megawatts.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000310 
-------------------------------------------------------------------
Textile exports up by 11.5%
-------------------------------------------------------------------
Muhammad Ilyas

ISLAMABAD, March 9: All the major export sectors registered a 
positive trend during the first eight months (July-February) of 
current financial year with the textile manufactures scoring a 
growth rate of 11.50%, according to detailed foreign trade figures 
released by the Federal Bureau of Statistics here on Thursday.

Particularly heartening is the performance of the manufactured 
exports. Their share in total exports ($5.484 billion) at the end 
of the 8-month period stood at 87.22%, compared to 87.41% during 
the corresponding period of last year. Only marginal though, the 
improvement is significant in view of the sluggishness of the 
manufacturing sector persisting for quite some time past.

Notably, the textile manufacturing sector seems to be coming into 
own, as indicated by the trade figures. In July-February (1999-
2000), textile manufactures totalled $3.55 billion - 64.72% of 
total exports. This shows 1.12% increase over the corresponding 
period of last year. However, underlying reason for the increase 
may be the pressure on exporters to sell their wares at any price.

This, however, points to a curious aspect: export of cotton yarn. 
According to official statistics, the country exported $678.34 
million worth of cotton yarn, up in dollar terms by 13.09%. But the 
quantity of cotton yarn (321,524 tons) exported during this period 
increased by 21.41%.

Some observers here wonder whether the real value was depressed 
through under-invoicing?

Even otherwise, experts point out that export of cotton yarn is no 
big deal because it constitutes only 8% value addition which in 
fact is negative in view of the power, labour and transportation 
consumed to spin yarn from raw cotton.

As usual, cotton fabrics were the highest source of foreign 
exchange among textile manufactures. In value ($713.41 million) 
though, their exports went up by 1.61%, but quantitatively, these 
increased by as much as 23.40%. This shows a sharp drop in the unit 
price of cotton fabrics in spite of the economic boom in United 
States, a major market for our textiles.

Further look at the statistics shows that quantitatively, the 
absorption of all our textile manufactures is on the rise, but the 
proceeds in terms of foreign exchange from such exports are much 
lower due to drop in their unit price.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000310 
-------------------------------------------------------------------
35% duty on 21 items of construction
-------------------------------------------------------------------
Correspondent

ISLAMABAD, March 9: The federal government has restored the maximum 
rate of 35% duty on the import of 21 items for the construction 
sector by removing the facility of zero-rate.

The ministry of finance and economic affairs notification issued in 
this connection stipulates that the rate of 10% duty would continue 
to be applicable on those 21 construction machinery items which are 
certified as not locally made (NLMM).

Falling under four main construction machinery categories, these 
items would now be levied the maximum rate of prevalent Pakistan 
Customs Tariff (PCT-1999-2000) and the fullest charge of the Sales 
Tax (15%), while the Withholding Tax and other taxes applicable 
rate for these imports would be the same under which these 21 items 
remained levied before their declaration as zero-rated.

The notification No C 3(3) Mach./T.P/99, dated March 7, 2000, 
specifies that the first major category of the construction 
machinery to be affected by the withdrawal of zero-rated facility 
would be "pre-cast plant machinery".

Under this category, six items now facing the maximum rate of duty 
(in case NLMM) would be the batching plants, gentry cranes, 
overhead cranes, tower cranes, steel vibrating tables, and steel 
vibratory moulds.

Under the category of "ready mix concrete manufacturing plants", 
three items to be affected by the finance ministry notification 
would be concrete batching plant with minimum capacity of 40 cubic 
meters per hour, concrete transit mixer with capacity of six cubic 
meters, and mobile concrete pumps with minimum boom length of 32 
meters, suitable to cater pump concrete up to four storeys.

The notification also impacts in the same way three items of the 
construction machinery category "concrete block manufacturing 
plants", which are as follows: fully automatic plants with 
accessories, with minimum capacity of 30,000 concrete blocks per 
day, block laying machines, and fork-lifters with minimum capacity 
of five tons.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000310 
-------------------------------------------------------------------
First 3000-Horse Power railway engine rolls out of factory
-------------------------------------------------------------------
Faraz Hashmi

RISALPUR, March 9: The first locally-assembled 3000-horse power 
diesel railway engine rolled out of the Railway Locomotive Factory 
here on Thursday. The Secretary, Pakistan Railways, Javed Ashraf, 
inaugurated the rolling-out 
of the engine by cutting a ribbon.

The general managers of Pakistan Railways, Hamid Hassan and Iqbal 
Samad Khan; the first secretary of Japanese Embassy in Islamabad, 
Takahashi Hiroaki; representatives of Marubini of Japan, General 
Electric Company of the United States and Adtranz of Germany were 
also present.

Earlier, Fahimuddin, managing director of the locomotive factory, 
addressing the gathering, termed the event a milestone in the life 
of the factory. He said the engine had been assembled at a cost of 
Rs160 million.

 He said the factory had already achieved 30 per cent deletion and 
planned to attain indigenous manufacturing capability of 70 per 
cent spare parts.

The 3000-HP engine was the first out of the 20 the factory has to 
assemble or partially manufacture till March 2001, Mr Fahimuddin 
said and added 10 engines had been imported in the partially knock-
down condition while the other 10 were in the completely knock-down 
condition.

Because of an acute shortage of locomotives, he said, the railways 
had imported 10 other 3000-HP engines from the United States as 
part of the same project, involving a cost of Rs3.25 billion.

The factory had earlier manufactured 23 2000-HP engines and the 
last such engine had rolled out of the factory in September 1997, 
he added.

DEVELOPMENT: Mr Ashraf told Dawn that the government had decided to 
develop railways as a primary means of communication.

He said the previous government had neglected the department in 
favour of road transportation, which, he added, was six times more 
expensive than railways.

Mr Ashraf said the ministry of railways had planned to acquire 56 
new engines, besides undertaking the rehabilitation of 48 others. 
He added that the government had agreed to ease financial burden of 
the Pakistan Railways to make it a profit- making and vibrant 
organization.

The AG also submitted that the personnel of the elite police force, 
brought by Mr Shahbaz to Islamabad from Lahore, were there and they 
were used by Brig Javed Iqbal when he went to Islamabad PTV Centre 
to disarm a few soldiers there.

As the accused left the witness box, the advocate-general rose and 
told the court that the prosecution was ready to commence its 
arguments. Khwaja Sultan, however, sought time for making 
preparations for the final arguments.

The court rose for the day and decided to settle the matter in the 
judge's chamber. Subsequently, with the consent of both the sides, 
it was decided that the prosecution would commence arguments on 
Monday. The defence was also given three days from March 20 to 22 
for arguments.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000308 
-------------------------------------------------------------------
Hubco moves to settle row with WAPDA
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, March 7: The Hub Power Company (Hubco) has expressed its 
willingness to reduce its internal rate of return (dividend) from 
18 per cent to 15 per cent to end its tariff dispute with the 
Wapda.

Informed sources told Dawn on Monday that Hubco Chairman Shaikh 
Mohammad Alireza had written a letter to Finance Minister Shaukat 
Aziz, expressing his company's readiness to reduce the shareholders 
rate of return.

Previously, Hubco had offered to reduce this rate from 18 per cent 
to 16.4 per cent which was not accepted by the ousted PML 
government.

They said that Mr Alireza had written to the minister that the 
government should accept the Hubco's latest offer with a view to 
settle the tariff issue out of court.

The new offer was made two weeks ago after the approval of the 
Hubco board of directors, they added.

They disclosed that Mr Alireza had met Mr Aziz in Devos 
(Switzerland) in early January this year and offered to reduce the 
company's rate of return. However, a formal offer had been sent to 
the GoP in a latest letter written by the Hubco chairman.

He has also indicated to further consider lowering the rate of 
return, provided the government decided criminal charges, leveled 
by Nawaz Sharif government, against the Hubco.

He said that so far no investigation had proved that Hubco was 
involved in corrupt practices, and had that been the case, the 
government, by now, would have brought certain evidences against 
it.

The military government has also been requested to treat Hubco at 
par with other 12 independent power producers (IPPs) to resolve the 
tariff problem.

The government has also been told that why the Hubco had been 
singled out by initiating criminal investigations against it and 
that why the other IPPs were excluded from it. The chairman, the 
sources said, was waiting for the reply of the government about his 
offer.


Back to the top
=================================================================== 
 EDITORIALS & FEATURES
20000310 
-------------------------------------------------------------------
The ramparts of Pakistani pride
-------------------------------------------------------------------
Ayaz Amir

Reading of the euphoria in Pakistani official circles over the 
announcement that Clinton after all will be making a brief stopover 
in Pakistan too when he visits India and Bangladesh later this 
month, it is hard not to be struck by the obsequiousness which 
often surfaces in our dealings with the United States. A few crumbs 
of comfort thrown our way, that too as an after-thought, and the 
entire national security establishment is pushed into a state of 
rapturous delight.

Clinton, we need hardly remind ourselves, will be coming to 
Pakistan for a few hours after spending full five days talking, 
feasting and sightseeing in India. And when he comes here we can 
bet he will read us a lecture, the main points of which will be 
democracy, terrorism (Osama bin Laden) and non-proliferation 
(CTBT). But there is no end to our delight because we think we have 
trumped the Indians (correct to an extent) and because the military 
government thinks Clinton's arrival, no matter if only for a few 
hours, will seal its legitimacy (a doubtful proposition).

Suppose for a moment that Clinton had winged his way past Pakistan. 
Pakistan would have survived the outcome - because Pakistan, 
despite what moaners say, is not a castle built on sand - but the 
military government would have felt like the emperor in the story 
without his clothes. Therefore a strong, almost a desperate, pitch 
was made for Clinton to stop here, howsoever briefly. Now that he 
is coming we are relieved and grateful and in no mood to see the 
implicit insult that a people with slightly more pride than we seem 
to have, would have read in the brevity of his halt.

Would Fidel, great Fidel, have put up with this? Forget Fidel, a 
constellation beyond our reach. Would Mahathir Mohamad have danced 
with joy because an American president was spending a few hours in 
Malaysia? But being without the one or the other, we are in a 
celebratory mood with no less than the Chief Executive saying, "It 
(the trip) vindicates the legitimacy of my government's stand and 
gives credence to our aim to put things right in our country."

The US is a great power, Pakistan a problem-stricken country on the 
other side of the globe. Even so, there are areas of common concern 
between the two countries which would remain intact and valid even 
if Clinton were not to come to Pakistan. What then are we so 
excited about? Trying to put the best possible face on the 
projected stop-over we are stressing Clinton's role as peace-maker 
and saying that this is an historic opportunity for him to set the 
ball of peace rolling between India and Pakistan.

Trying to fool others is a legitimate exercise in statecraft. But 
for self-deception, at which we are rather good, there can be few 
excuses. Beyond pious words and platitudes what is it that Clinton 
can do? Can he deliver a settlement on Kashmir? If not, whom are we 
kidding?

We are also saying Clinton can lower the temperature between India 
and Pakistan. Perhaps he can but only for the moment because if the 
cause of tension-- the insurgency in Kashmir--remains, the 
temperature will rise again and Clinton by then will be preparing 
to say his farewells from the White House. Whether we pursue war or 
peace in South Asia, when the crunch comes we will be alone, as we 
were (barring Chinese help) in 1965 and 1971. And as we were in 
Kargil just a year ago.

But to go on in this vein is futile. Pakistani rulers, for reasons 
yet to be adequately discovered by professors of political theory, 
have always felt heavily dependent on the US. General Ayub Khan was 
no exception. When he became self-appointed saviour of Pakistan, he 
was greatly taken with the US. It was only later that he turned to 
China in large measure because of his disillusionment with the US 
when it came to India's assistance after the Sino-Indian war of 
1962. General Yahya Khan felt inordinately proud of his role as a 
bridge between China and the US in 1971. But when the same winter 
India and Pakistan drifted to war, Pakistan found itself helpless 
and alone. General Zia mortgaged the country's long-term interests 
by acting as a cat's paw for the Americans during the Afghan war. 
While the results of that disastrous engagement can be seen all 
over Pakistan, the US has moved on to other things. But our one-
sided love affair with the US continues, partly out of economic 
necessity but partly for reasons more emotional than pragmatic.

This scarcely means we should make a virtue of anti-Americanism. 
There is no call for that. But it does mean we should be realistic 
and not exaggerate our importance in American eyes.

Our nuclear capability is no help in this regard. On the contrary, 
far from promoting realism it is having just the opposite effect by 
encouraging us to nurse delusions of grandeur. Deterrence should be 
kept ready but hidden as Israel has managed to do so successfully. 
But we have been wearing our nuclear ability on our heart-strings 
which is a mark of infantile behaviour. What is more, it has 
already led us into one costly misadventure. If it had not been for 
our nuclear explosions it is questionable whether we would have 
walked so recklessly into the Kargil conflict. What a sacrifice of 
blood and youthful lives and all for what?

Echoes of the Kargil crisis have also reverberated in the hijacking 
case against Nawaz Sharif and his co-accused. In his statement 
before the trial court the former prime minister has traced his 
differences with General Musharraf to that conflict. Who lit the 
match that sparked it? What were the respective positions of the 
then prime minister and the army chief? A few privileged people 
would probably know but the public at large remains ignorant - 
which is not surprising given the historical record. To this day 
the contents of the Hamoodur Rahman Commission report on the 
tragedy of the 1971 war remain hidden from public view.

I think no one has bettered Munir Niazi's description of what is 
wrong with Pakistan. How eloquent and full of pain his lament when 
he says that there is a sinister shadow on this country because of 
which, despite ceaseless activity, our journey is painfully slow. 
To this some people would add that in our national striving there 
is no journey at all and that all our ceaseless activity is taking 
place on the same spot. Let alone everything else, we have yet not 
resolved the conflict between dictatorship and democracy.

The Urdu columnist Abbas Athar (who writes regularly in the Nawai 
Waqt) has done well to suggest that in any future governmental 
setup we should abolish the position of prime minister altogether 
because of the misfortune attached to it: one prime minister 
murdered at a public meeting, several others banished from 
political life after the first martial law in 1958, another taken 
to the gallows, one currently in exile facing charges of 
corruption, another undergoing trial on charges which carry the 
death penalty. In truth, misfortune dogs this office. 

Nawaz Sharif's statement in court makes sad reading. Whatever his 
sins, did he deserve to be put in a cold and dark cell in the first 
few weeks of his imprisonment? Even if the power clashes which 
periodically break out in Pakistan have an overwhelmingly mediaeval 
or Byzantine colouring, it would do us no harm to conduct them in a 
more civilized manner. When Bhutto was hanged the Economist ran a 
cover story with Zia's picture and the legend underneath: "We even 
hang our prime ministers." Bhutto's hanging did not enhance 
Pakistan's image. Nawaz Sharif's incarceration and the long line of 
armoured cars which bring him to court also do not redound to our 
greater glory.

This does not mean Nawaz Sharif should not be tried for any wrongs 
he may have done. But two questions arise in this connection. (1) 
Who is to do the judging? Clean hands or tainted ones? And (2) Why 
can't justice be less vindictive in Pakistan?

One last thing. Nawaz Sharif may have been highhanded in power (and 
there is no doubt he was) but hand it to him that he is being brave 
in adversity, no small thing in a country where strutting heroes 
all too often turn out to be paper tigers when they fall afoul of 
fortune. 

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000311   
-------------------------------------------------------------------
War or peace
-------------------------------------------------------------------
Irfan Husain

AN outsider watching Pakistan Television or the plethora of Indian 
channels now crowding the airwaves can be excused for thinking that 
war between the two countries is imminent.

Those of us who are used to this sabre-rattling have been to the 
brink - and beyond - before. This is not to say that the war 
hysteria being fanned on both sides makes it easy to go to sleep: 
terms like "limited war" and "hot pursuit" are gaining currency 
even with respected columnists. And to give explosive substance to 
this war of words, the Indian government has announced the 
intention of jacking up its defence budget by a staggering 28 per 
cent.

Not a day passes without a bellicose statement by leaders at the 
highest level in both capitals. The Indian defence minister has 
gone so far as to claim that India would win both a conventional 
war and a nuclear exchange. Such irresponsible statements do 
nothing to calm jangled nerves. The fact that politicians and 
generals in power are even contemplating nuclear war is the stuff 
nightmares are made of. One frightening problem is that most of our 
leaders are too unsophisticated to comprehend the chilling 
implications of using nuclear weapons in densely populated areas: 
for them, atomic bombs are just bigger conventional explosives. 
They have neither the technical information nor the imagination to 
grasp the horrors of nuclear fallout on a vast scale.

People on both sides of the great divide talk glibly of nuclear 
deterrence as a viable and even desirable doctrine, pointing to 
nearly half a century of cold war between the United States and the 
Soviet Union that finally ended in defeat for the latter without a 
shot being fired. They forget that there were elaborate fail-safe 
devices and systems in place on both sides to prevent the 
accidental use of nuclear weapons. Also, the vast distances that 
separated their territories gave leaders an opportunity to abort an 
attack that had been erroneously launched. India and Pakistan do 
not, alas, enjoy the luxury of geographical separation.

The 28 per cent increase in India's defence budget works out to 
around three billion dollars, or the approximate size of Pakistan's 
entire annual military expenditure. Fortunately, General Pervez 
Musharraf has publicly stated that Pakistan will not attempt to 
match India's budget rise and will not be drawn into an arms race 
with our neighbour. One hopes this refreshing sanity will not be 
dissipated by the time the new budget is presented in the next 
couple of months.

By any standard, the amounts being spent on armaments in South Asia 
are enormous, but set against the abject poverty that is rampant 
here, they assume obscene proportions. Year after year, both India 
and Pakistan sink billions of dollars into the black hole of 
defence expenditure. At the same time, both countries are at the 
very bottom of the international ranking for education, nutrition, 
health, housing and sanitation. Despite the obvious contradiction 
between widespread destitution in both countries on the one hand, 
and the vast unproductive defence expenditure on the other, 
successive governments in New Delhi and Islamabad have consistently 
shown a lack of will to settle their outstanding differences 
through negotiations.

Both are so completely fixated on Kashmir that it would seem they 
have no other problems to deal with. Although leaders on both sides 
pay lip-service to the wellbeing of the unfortunate people of the 
valley, the truth is that they only covet the land and are willing 
to fight to the last Kashmiri to get it. Along the way, if a few 
hundred thousand Indians and Pakistanis are nuked to cinders, too 
bad.

The mule-like obstinacy and unbending rigidity on both sides makes 
a peaceful resolution of the problem virtually impossible. Our 
stand can be reduced to an unshakable resolve to talk about 
Kashmir, and only Kashmir. India, on the other hand, repeats the 
mantra of "everything but Kashmir." After the October military 
take-over in Pakistan, the BJP has seized upon the unconstitutional 
nature of the present government as an excuse to refuse 
negotiations. Neither side has shown any imagination or vision in 
approaching this Gordian knot. And while this deadlock continues, 
the likelihood of both sides stumbling into war increases.

Under these circumstances, both countries should welcome President 
Clinton's visit to South Asia as an opportunity to break the logjam 
in their relations. So far, India has been implacable in refusing 
to accept a third party playing a role on Kashmir on the grounds 
that problems with Pakistan must be resolved on a bilateral basis. 
But as it is now rejecting direct talks with General Musharraf's 
military regime, it makes sense to speak to Islamabad through an 
intermediary.

Given the current thaw between Washington and New Delhi as well as 
our previously cordial relations with the US President Clinton is 
ideally placed to mediate between India and Pakistan. His nation 
has the clout and the credibility, and he has the personal charisma 
and the diplomatic skills required to make a breakthrough. This 
visit is the best chance South Asia has for peace in the 
foreseeable future. Even though Clinton's term of office is drawing 
to a close, his personal involvement in initiating a peace process 
will be crucial to kick-starting a dialogue between these obdurate 
and prickly foes.

To create a conducive atmosphere for peace, it is important that 
both sides take some initial steps. Pakistan can use its influence 
with the freedom fighters in Kashmir to halt their attacks until 
Clinton's visit while India can stop its bellicose anti-Pakistan 
rhetoric and temporarily cease offensive military measures in the 
valley. While even such relatively minor initiatives may be too 
much to expect from our immature leaders, it is time they realized 
that far more than their frail egos is involved here. It is time, 
in short, to get real. This fleeting opportunity must not be 
wasted.

Indeed, public sentiment has been whipped up to such an extent in 
both countries that it is difficult to discuss a rational solution 
to the problem that all three parties can live with. It is clear 
that none of them will get what they want, but then that's what 
negotiations are about. The Indians will not get all of Kashmir, 
and nor will Pakistan, short of an all-out war in which one side 
emerges as the undisputed victor. But in a nuclear war, there can 
be no winners. The Kashmiris will not gain complete freedom as most 
of them seem to want, although in an ideal world this would be the 
optimum solution.

If all three parties grasp the fact that in the real world, you 
make compromises and gain a part of what you want, then we can 
start talking about solving this problem once and for all. But 
above all, they have to realize that posturing is no substitute for 
realistic, hard-headed policies.


===================================================================
SPORTS
20000311 
-------------------------------------------------------------------
Miandad takes over as coach 
-------------------------------------------------------------------
Correspondent

LAHORE, March 10: Former Pakistan captain Javed Miandad has been 
asked to takeover as coach of the cricket team after Intikhab Alam 
handed over his resignation to the Pakistan 
Cricket Board (PCB) Ad Hoc Committee Chairman Lt-Gen. Tauqir Zia on 
Friday.

Intikhab held a long meeting with the PCB chairman before tendering 
his resignation. The PCB advisory council, headed by Lt-Gen Tauqir 
Zia later held a meeting and appointed Javed Miandad to take over 
as coach of the team also for third Test between Pakistan and Sri 
Lanka scheduled from Sunday in Karachi.

Later talking to reporters, Intikhab said that he decided to 
relinquish the job after he came to know that the PCB was thinking 
to remove him. He said that he could continue the job before the 
end of the on-going home series against Sri Lanka, but decided to 
quit as he felt he could not motivate himself after knowing that a 
change was in the offing.

However, Intikhab Alam stated that he would continue his assignment 
as the ICC Match-Referee. Miandad, 42, was originally scheduled to 
begin, his tenure as coach from the Sharjah Cup, which starts on 
March 22.

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000311 
-------------------------------------------------------------------
Security measures for third Test
-------------------------------------------------------------------

KARACHI, March 10: Security measures have been finalized for the 
third cricket Test to be played between Pakistan and Sri Lanka here 
at National Stadium from March 12 (Sunday).

Karachi Commissioner Shafiq-ur-Rehman Paracha headed a meeting at 
the stadium on Friday and it was decided to ban for carrying all 
eatable items, including water bottles, radio and telescopic 
devices inside the stadium during the five days. The meeting 
reviewed security arrangements and expressed its satisfaction.-PPI

DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
20000308 
-------------------------------------------------------------------
Yousuf, Saleh to play in Asian snooker
-------------------------------------------------------------------

KARACHI, March 7: National Champion Muhammad Yousuf and Saleh 
Muhammad will represent Pakistan in the Asian Snooker Championship 
being held in Hong Kong in July.

Pakistan Billiards and Snooker Association Joint Secretary Arif 
Tahirbhoy said here on Tuesday their former Asian Champion Muhammad 
Yousuf, won national title in Faisalabad, former world number three 
Saleh Muhammad who won runner-up.

Pakistan team at the end of the year will figure in the World 
Snooker Championship being held in China in November.-APP

------------------------------------------------------------------- 
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.

Dawn page

Webbed by Philip McEldowney
Last update: .