------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 27 May 2000 Issue : 06/20 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + Civil rule to be back, but corrupt to be kept away: Musharraf + Army-backed survey begins today + CE condoles Ludhianvi's death: Agencies asked to arrest killers + CJC vows action against lower staff also + Verdict for regular hearing on June 2 + Corruption & inefficiency charges: 1,000 CBR employees dismissed + Soomro sworn in as Sindh Governor + Plane hijacking case: Appeals maintainable, rules SHC + Pickering briefed on thorny issues + Pakistan reaffirms its Nuclear policy + Govt assurance to IMF team: Decision on GST won't be withdrawn + Japan may lift sanctions on India and Pakistan + Pakistan Origin Card scheme hits snags + Libya wants to buy Pakistani arms --------------------------------- BUSINESS & ECONOMY + Finance minister unveils strategy: Tax evaders put on warning + Devaluation: SBP denies rumours + Budget 2000-2001: New dams, agriculture & tax reforms suggested + Govt accepts demand: Ghee makers call off strike + IMF team looking at exchange rate policies + CBR holding back Rs15-20bn in ST refunds, says CTA + Govt to clear refund claims + Rs22 billion wiped out from market capitalization + Textile Vision 2005: Bankers want focus on updated technology + Forward premium on $ shoots up --------------------------------------- EDITORIALS & FEATURES + Law and order Ardeshir Cowasjee + Learning politics the hard way Ayaz Amir ----------- SPORTS + Eight cricketers fined for match-fixing + Barbados Test ends in a tame draw + Pakistan judge says probe not over
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20000526 ------------------------------------------------------------------- Civil rule to be back, but corrupt to be kept away: Musharraf ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, May 25: General Pervez Musharraf indicated on Thursday that he would soon start meeting politicians to seek their support for his government. Speaking at a wide-ranging press conference here, the chief executive, however, hastened to add that the idea was still in the formative stage and he was not yet clear about under what arrangement the politicians' support would be sought. He also announced the establishment of a high-powered committee, comprising the finance minister and the State Bank governor, which, he said, would scrutinize all financial corruption cases and pass on to the NAB only those cases which fell into a special category. This, he said, should reassure the investors at large and the reluctant bankers, and hoped that the two would resume their normal working without the fear of being harassed unnecessarily by those engaged in the accountability process. Gen Musharraf said he was considering bringing under the ambit of PCO the Islamic provisions of the constitution."These provisions cannot be abolished, they will always remain there, they are not covered by the PCO but I am considering bringing them under the PCO." On the blasphemy law, he said it was a part of the constitution and it could not be removed, and reassured that his government would see to it that nobody was unnecessarily victimized by the misuse of this law. He said his government was committed to restoring civil rule in the country, but "we will not allow corrupt politicians to come back." Adding, the chief executive said he would never meet anybody from a position of weakness but on equal footing. "I will meet the politicians, the traders, the religious groups, I want to take everybody along." In his opening remarks Gen Musharraf rejected the "misperceptions" that Pakistan was diplomatically isolated, that his government was suffering from paralysis and that it was moving like a rudderless ship without any strategic direction. He said that, in the seven months since he took over, his government was able to set many things right, had discussed at length the immediate problems facing the country, conceptualized ideas and given a strategic direction to the country and now, according to him, Pakistan had entered the implementation phase. He invited the press to serve as his eyes and ears by keeping a close watch on the implementing process. "Let me know if the pace had slowed down or the quality of implementation had gone down." Giving his arguments against the diplomatic isolation aspect, the chief executive said Pakistan was at the 'epicentre' of all the important issues that were engaging the world today, like nuclear non-proliferation, religious extremism, Afghanistan, tension on LoC and narcotics. He indicated that it was, therefore, necessary for the world to keep Pakistan engaged on all these issues."They give us their opinion on these matters and we give our opinion. So, where is the problem?" Adding, he said that his government had not compromised national interests on any of these issues."On CTBT we have told them that we are trying to build a national consensus and also that the agreement is not being held up because we have not signed it." "On the Kashmir issue, we have told them that it is not terrorism but people's uprising, a human rights problem; on Taliban, we have told that we are friendly with the Taliban because we have to have the Pushtoons on our side and they understand it," he maintained. The chief executive then gave brief snapshots of his visits abroad during the last seven months and said that everywhere he went he was received warmly and his talks with the leaders of these countries were fruitful and that some of the results of these visits would appear soon. He specially mentioned his visits to China, Iran, the Middle East, Gulf countries, Egypt, Libya, Turkmenistan, some Southeast Asian countries, his participation in the Group- 77 meeting and forthcoming visits to attend the ECO and OIC summit and the Millennium meet of the UN. Gen Musharraf said the Chinese leaders were happy that he was the first foreign leader to visit their country in the new millennium and "this visit had been arranged at a notice of seven to eight days and I could meet all the four important leaders there during my short stay." As a result of his visit to Iran, he said :" The bilateral trade has increased, we have been able to export rice to Iran and get steel from them and negotiations on gas imports from Iran and letting it pass through Pakistan to India were also held." About the US, the chief executive said:" There is no change in our relations, they are all right (Thik thak), and they still want to play a role in connection with the tension on the LoC." About India, he said that if they wanted to talk to him, he was ready to talk to them; if they did not want, then "I also do not want, but if they want to talk we will talk about Kashmir, that is for sure." And finally, the chief executive said:" All our external debt amounting to over $3 billion had been rescheduled." All this showed, according to him. that"we are not isolated and that those who perhaps are suffering from some kind of complex are nursing this notion. "Nobody can ignore a nuclear state with a population of 140 million. We need self-confidence and play our cards well," he declared. Turning to the domestic front, he said his government was not suffering from any paralysis, and claimed that, in the seven months, it had given a strategic direction to the country despite the fact that it had inherited a shattered economy, plundered banks, a graveyard of industry, totally destroyed corporations and budgets based on figure fudging, politicized state organs, provincial disharmony, overall downward trend and the making of a 'failed state'. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Army-backed survey begins today ------------------------------------------------------------------- Dawn Report KARACHI, May 26: A countrywide survey of business and properties will begin simultaneously in 13 major cities of the country on Saturday for expanding the tax net and documenting the economy. A number of teams have been formed to conduct the survey. The cities to be surveyed include Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Hyderabad, Sukkur, Multan, Quetta, Sargodha, Faisalabad, Gujranwala and Sialkot. In the first phase the teams will conduct the survey of business and industrial establishments and residential areas in the major cities, including the federal and four provincial capitals. Thirty-five teams have been constituted to conduct the survey in five major cities of Sindh and Balochistan. Briefing the newsmen at a press conference here on Friday, the regional commissioner of Income Tax, Southern Region, Mohammad Shafi Malik, said that his region had geared up to meet all the requirements of the survey. He said 16 teams had been constituted for Karachi, nine for Hyderabad, five each for Sukkur and Quetta. They would have supporting teams who will be staying back in camp offices along with army officials and members of other security agencies, he added. The RCIT said that each camp office would be headed by an army colonel who would be assuming the responsibility of an administrator or in charge. Sixteen teams will start the work in five districts of the city by distributing questionnaire forms available in Urdu and English. He said each team of 4 to 5 members will be visiting door-to- door for the distribution of questionnaire forms to be filled in by the taxpayers. Mr Malik said that there will be two teams for industrial areas, nine for commercial areas, and five for residential areas. In the first phase he said that posh residential areas like Clifton, Defence Housing Authority (DHA), PECHS, Gulshan-i-Iqbal and Gulistan-i-Jauhar will be covered by the survey teams. Similarly, he said commercial areas like Clifton, DHA, Jodia Bazar, Shershah, Timber Market, Tariq Road, Saddar, Hyderi market, M. A. Jinnah Road, Gulshan-i-Iqbal and Gulistan-i-Jauhar will be put under first phase of survey. Industrial areas will include SITE, Landhi and Korangi. Mr Malik further said that the teams visiting manufacturing and business establishments will be headed by assistant collector of Sales Tax, one assessing officer of income tax, superintendent of Sales Tax and a staff member. The teams conducting survey of residential areas will be headed by the deputy commissioner of income tax accompanied by two inspectors. About the camp offices, he said around eight such spots have been selected which include offices of SITE association of Industry, Imran Ice Factory, Korangi, All Pakistan Kirana Merchant Association office, Timber Merchants Association office, Assistant Collector of Income Tax office, Nazimbabad No 4, for Clifton and DHA, National Tent House, Mateen Centre of Tariq Road, and Hashoo Centre. Responding to a question, he said about 100 to 150 questionnaire forms could be distributed per day and the department will be keeping register for recording of each movement. All the questionnaire forms, he said, will be collected back from the taxpayer in a week or so. He said the information collected through this exercise will be compared with the records and data compiled by the departments' internal survey teams. After updating and verifications of statements only then revenue authorities will confront the taxpayers. All the information collected will be stored in a regional data processing centre, headed by a colonel of army. The survey teams, he said are code numbered so that the data could be easily transferred into the computers of Pakistan Revenue Automation, a government owned company. After processing these data, he said that it will be further transferred to National Revenue Data Process Centre (NEDPC), Islamabad as well as to General Headquarters (GHQ) Rawalpindi. He said each team, in the first phase will only distribute the questionnaire forms to industrial, commercial and residential areas to be collected after a week or so. These will also provide assistance, if asked, for filling and completing the forms, he added. In case of any resistance and defiance, he said that the violator would be prosecuted under newly issued Ordinance NO 15 of 2000, titled: "To provide for documentation of economy." All the teams will also be accompanied by judicial magistrate who could on the spot penalize those who may resist by fining them up to Rs25,000 or send them for three months to jail or both. Mr Malik said that the questionnaire forms are to be separately filled by businesses, property owners and tenants. For businesses there are 29 questions in the survey form, for property owners 18 and tenant 20 questions. The government is estimating to collect Rs100 billion from the survey, which will be helping the country to meet its budget deficit, expand tax net and above all document the economy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000524 ------------------------------------------------------------------- CE condoles Ludhianvi's death: Agencies asked to arrest killers ------------------------------------------------------------------- KARACHI, May 23: Chief Executive Gen Pervez Musharraf said on Tuesday that the martyrdom of Maulana Yousuf Ludhianvi was a conspiracy to create chaos and destabilize the country. He added that not only foreign hands but internal factors were also involved in this gruesome act. He was talking to ulema, including Mufti Muneer Ahmed Akhund, the son-in-law of the late Maulana Ludhianvi, his sons Maulana Saeed Ludhianvi, Atiq Ludhianvi and Tayyab Ludhianvi, at Jamia Zakaria Al-Khairia at Masjid Al-Falah in F.B. Area where he had gone to offer condolence on the Maulana's death. Gen Musharraf declared that the government would utilize all its resources for the arrest of the culprits and would award them deterrent punishment. He said all the agencies in the country had been told to arrest the killers. The Ulema, including Dr Razzaq Iskandar, Mohtamam of Madarras Binori Town, Hafiz Atiqur Rehman, Maulana Imdad, Maulana Ghafoor, Maulana Naim and others on the occasion demanded of the chief executive to make the Blasphemy Law, part of the provisional constitutional order (PCO) and declare Friday as a weekly holiday. The CE told them that their demand would be given due consideration. Gen Musharraf urged the Ulema to strengthen his hands in making the foundations of the country stronger. The chief executive was presented a set of 19 volumes of books Aap Key Masail Aur Un Ka Hal written by the late Maulana Ludhianvi. Sindh Governor Azim Daudpota, Chief Secretary Zubair Kidwai, IG Police Aftab Nabi, Commissioner Karachi Shafiqur Rehman Paracha, DIG Javed Iqbal were also present on the occasion. VISITS Business Recorder OFFICES: Gen Musharraf expressed deep sorrow at the ransacking and setting afire of the offices of Business Recorder by miscreants on Thursday last. The CE hoped that such incidents should not recur in future. He was talking to newsmen after a visit to the offices of the newspaper here today.- APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000523 ------------------------------------------------------------------- CJC vows action against lower staff also ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, May 22: The Chief Justices Committee, comprising chief justices of the Supreme Court, Federal Shariat Court and the four high courts, on Monday resolved to weed out corruption from the judiciary. A meeting of the CJC noted that the Supreme Court in its May 12 short order passed on the petitions challenging the military takeover had held that the process of accountability shall be accelerated in a coherent and transparent manner, and it shall be just, fair and in accordance with law. The CJC, presided over by Justice Irshad Hasan Khan, Chief Justice of Pakistan, decided to vigorously pursue the process of accountability among judges. It approved the suggestion from the chair that judges should not involve themselves in public controversies and should not attend public functions except the functions of the bar. It resolved that any deviation from the code of conduct will constitute a "grave fault". The committee decided to expedite the disciplinary inquiry proceedings against allegedly corrupt and inefficient judicial officers in the subordinate judiciary in all the provinces. It resolved that all the pending cases of accountability and indiscipline against the judicial officers should be completed expeditiously but not later than 90 days from May 22. The CJC resolved that the respective chief justices of the high courts should ensure the completion of inquiry proceedings within the said period and inform the chief justice of Pakistan about the outcome for consideration at the next meeting of the committee. It directed the judicial officers of subordinate courts to keep vigilance on the staff of their respective courts and take action against the inefficient and corrupt officials, in accordance with the prescribed procedure for eliminating corruption and graft from the judicial administration forever. The committee noted that after the first meeting of the CJC on Feb 26, the efficiency of courts had improved and there had been an overall improvement in the system of dispensation of justice. "A reasonably good advance has been made in the disposal of cases, falling in special category namely cases of widows, orphans, family suits, including suits for custody of minors, and other family disputes." The meeting was attended by Justice Mohammad Bashir Jehangiri, senior puisne judge of the Supreme Court; FSC's Chief Justice Fazal Ilahi Khan, LHC's Chief Justice Allah Nawaz, SHC's Chief Justice Saeed Ashhad, PHC's Chief Justice Sardar Mohammad Raza Khan, and BHC's Chief Justice Raja Fayyaz Ahmed. APP adds: The CJ proposed the adoption, among others, of the following resolution: The CJC reviewed the state of implementation of the earlier decisions and measures recommended by the committee for quick disposal of cases, particularly family suits, rent cases involving ejection from houses, cases of widows and orphan children and minor criminal cases. The committee resolved that all such cases shall be positively disposed of by the specified date i.e. May 31. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Verdict for regular hearing on June 2 ------------------------------------------------------------------- Shujaat Ali Khan KARACHI, May 26: A three-member bench of the Sindh High Court will decide on June 2 whether to admit state appeals in the hijacking case to regular hearing and, if so, when to commence the proceedings. After listening to Advocate-General Raja Qureshi's arguments in favour of admission from 8.45am to 10.45am, the bench headed by Chief Justice Saiyed Saeed Ashhad decided to reserve its order, indicating that, like the question of maintainability, the matter of admission will also be disposed of by a detailed speaking order. A copy of Thursday's order dismissing the defence applications against maintainability was, meanwhile, ordered to be given to appellant Nawaz Sharif's counsel, Barrister Azizullah Sheikh, for transmission to the Lahore lawyers contesting the state appeals against the convicted ex-PM and his acquitted co-accused. The order is likely to be challenged in the Supreme Court on Monday along with a request for stay of proceedings. June 2, when the bench will decide on the admission of state appeals, is the last working day of the Sindh High Court before its closure for a three-week summer vacation. The members of the bench, Justices Sarmad Jalal Osmany and Wahid Bux Brohi, will be working at Mofussil benches as vacation judges for a couple of weeks. Going by the roster, the appeals, if admitted, are unlikely to be heard before the end of vacation in August. However, the CJ may revise the roster and issue notices to the respondents for a convenient date during the recess. The advocate-general prefaced his submissions with a brief background of the case and its trial before Special Court Judge Rehmat Hussain Jafferi under the Anti-Terrorism Act, 1997. He also referred to the 12-member Supreme Court bench finding that the removal of the chief of army staff, a constitutional office holder, on October 12, 1999, was arbitrary and unlawful. The ruling strengthens the prosecution case that the motive behind the hijacking was to effectuate an illegal change of army command. In reply to a court query why Mian Nawaz Sharif's acquittal under Sections 324 (murder attempt) and 365 (kidnapping) of the Pakistan Penal Code (PPC) has not specifically been challenged as pointed out by Barrister Ijaz Husain Batalvi, the AG said the two offences constitute part of hijacking. There was an attempt to kidnap the army chief and other passengers by forcibly trying to divert their flight from its destination and an attempt to murder by jeopardizing their safe landing. About capital punishment for the principal accused (Nawaz Sharif), Mr Qureshi said hijacking is the only offence in the PPC the attempt and commission of which carry the same punishment, that is, life term or death. As for the inclusion of the offence in the ATA schedule in December 1999 after the occurrence in October, the AG said there is no retrospective enhancement of the quantum of punishment and the amendment only changes the forum of trial, which is permissible under Section 38 of the ATA. Analysing the impugned April 6 judgment, he said the PPC Section 402-B (hijacking) prescribes the punishment of death sentence as a rule. That's why reasons are required to be recorded for lesser penalty of life term. The Balochistan High Court judgment on which Judge Jafferi has relied on awarding life term itself cautions that it be not treated as a precedent because of the peculiar circumstance of the 1991 hijacking case. There is no mitigating circumstance in the October 12, 1999, offence wherein the prime minister of an Islamic country used the state machinery to avenge himself on a person he considered his enemy. The (former) PM was so blinded by vindictiveness that he showed no regard for his oath, the injunctions of Islam or sanctity of the right to life. The AG also emphasized that no accused testified on oath before the trial in anti-terrorism court so as to submit his assertions to judicial scrutiny and offer himself for cross-examination. Nor did any named a single witness in his defence. Challenging acquittals, he claimed that there was sufficient incriminating evidence against each one of them and the ATC judge erred in holding that 'further corroboration was required' or that 'the best evidence has not been produced' or that the prosecution case was exaggerated. A conspiracy is by definition hatched in secrecy and direct evidence is difficult to adduce. There is, however, 'overwhelming direct and circumstantial evidence' to prove that all the accused agreed to commit a criminal act and acted in pursuance of their common goal, that is, to prevent as far as possible the COAS's flight from landing in Karachi. It was only timely intervention by the army that foiled the conspiracy, the AG said. He submitted that accused Shahbaz Sharif, brother of Nawaz Sharif and (former) chief minister of Punjab, PML senator Saifur Rehman Khan, a confidante of the ex-PM, and Saeed Mehdi, his principal secretary, were all present in the TV lounge of family wing of the PM's House in Islamabad on October 12 to discuss, make suggestions and issue directions for the hijacking of the army chief's plane. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000526 ------------------------------------------------------------------- Corruption & inefficiency charges: 1,000 CBR employees dismissed ------------------------------------------------------------------- Ihtasham ul Haque ISLAMABAD, May 25: Chief Executive General Pervez Musharraf announced here on Thursday the dismissal of 1,000 employees of the Central Board of Revenue (CBR) on the charges of corruption. Speaking at a news conference here he said: "We need a real purging of the corrupt elements and as a first step 1,000 employees of the CBR belonging to excise, Custom and Income Tax departments had been removed from their jobs." He accused them of "plundering the wealth of the country," and warned "they cannot be allowed to continue working in their present positions". He said details in this regard will be provided by finance minister on Friday. He said the government has chalked out a plan under which downsizing will be carried out in other departments also. Gen Pervez Musharraf said downsizing would start from the ministry of information and as a first step 2,500 people including those working in PTV, PBC, APP and elsewhere would be relieved. However, he assured that "competent and honest people did not have to worry as they will not be touched." He claimed that his government has achieved a turn around in many fields and that by the end of this year, things would further improve to put the economy back on track. He declared that documentation of the economy will start from May 27 through the distribution of tax survey forms to traders and employees of the government and private sector. "I would urge traders not to oppose this campaign as nobody could deter me to undertake this job to increase revenues". Nevertheless, he assured that he would not allow the tax machinery to victimise the traders. "Both the tax payers and the tax machinery will have to behave", he said. Gen Pervez Musharraf warned traders that he was not afraid of their strikes. "Let them close their shops for ten days but whenever they will open their shops, we will get the survey forms filled by them." he added. He said "there is no going back in this matter and message should be loud and clear for the traders." Gen Pervez Musharraf said he realised that there was a corrupt tax machinery and that was why the government has deputed the army to go with the CBR people for tax survey. "Be rest assured I would not allow the CBR people to victimise anyone," he declared adding that tax survey was being started initially in 13 cities and that by December 31, the department would complete the survey. "My modest assessment is that we will get an additional amount of Rs 100 billion through this campaign." He said any trader whose income was below Rs 1 million had nothing to worry. He said that a decision has been taken to reduce the number of taxes. There were 25 taxes in the provinces which were being merged to decrease this number. "We are also removing the discretionary powers of the tax authorities which will help remove the complaints of the traders". He said there was a potential of Rs 600 billion revenues. He said fudging of revenues had caused a loss of $55 million which had been paid to the IMF because the previous government had indulged in the fudging of revenues to show a less budgetary deficit. He admitted that nothing much has been achieved on the economic front so far but asserted there could not be quick fixes and that people will have to wait for sometime to see the government efforts bear fruit. The major problems, he continued, were the identification of the problems which were causing damage to the economy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000526 ------------------------------------------------------------------- Soomro sworn in as Sindh Governor ------------------------------------------------------------------- Reporter KARACHI, May 25: The newly-appointed Sindh Governor Mohammed Mian Soomro has said that if Kalabagh Dam is useful for the province and the country it should be constructed. He was responding to questions of newsmen after his swearing in as Sindh Governor here on Thursday. He was administered oath by Sindh High Court Chief Justice Syed Saiyed Ashhad at the Darbar Hall of the Governor House. Mr Soomro said his priorities would be restoration of law and order, prosperity of the people and integration of the country. He would formulate strategy for obtaining these objectives in consultation with his colleagues after forming his cabinet within next few days. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000526 ------------------------------------------------------------------- Plane hijacking case: Appeals maintainable, rules SHC ------------------------------------------------------------------- Shujaat Ali Khan KARACHI, May 25: A Sindh High Court full bench on Thursday found state appeals in the hijacking case maintainable and asked the advocate-general to advance his 'submissions and arguments' on Friday morning to satisfy it that they warrant admission to regular hearing. The objection that the appeals have been filed without a direction from the government is 'ill-founded' and the applications raising it are dismissed to the extent of the question of maintainability, the bench comprising Chief Justice Saiyed Saeed Ashhad and Justices Sarmad Jalal Osmany and Wahid Bux Brohi said in a 16-page unanimous order announced by the CJ at 1-30pm. No copies were supplied to the reporters covering the proceedings despite repeated requests in view of the importance of the case. They were told by the court staff to rush through the original order and take notes from it. One of the appeals found maintainable seeks enhancement of ousted premier Nawaz Sharif's penalty to death while the other challenges anti-terrorist judge Rehmat Husain Jafri's decision to acquit all six co-accused, including former Punjab chief minister Shahbaz Sharif. Barrister Ijaz Hussain Batalvi, who moved and argued the application filed on behalf of the ex-PM, had informed the bench on Tuesday of the Sharifs' intention to challenge any adverse order in the Supreme Court. Barrister Azizullah Sheikh, who is appearing for Nawaz Sharif in his appeal for his acquittal, emphasized that the order was unanimous and that he could not say anything before going through its contents. The bench agreed with the defence counsel that a government direction was a condition precedent to filing a state appeal under Section 25 (4) of the Anti-Terrorist Act but pointed out that the section or any other provision of the Act did not require that such direction be produced in the court in writing. The law nowhere says that the question of issuance of a direction by the government will remain disputed and unresolved unless it is produced in the court. Referring to an identical provision (Section 417) of the Criminal Procedure Code, the bench observed that though it empowers a provincial government to direct a public prosecutor to prefer an appeal to a high court, there is no high court or Supreme Court judgment declaring that an appeal will be liable to be summarily dismissed if filed without an extract of the direction. Considering the material on record, it said, the applicants have failed to establish beyond reasonable doubt that the requirements of Section 25 (4) of ATA were not complied with. The letters of April 8 and 10 appended to the memoranda of appeals, it added, clearly authorize the advocate-general 'to conduct and pursue' appeals arising out of the ATC judgment of April 6. Citing Black's Law Dictionary and other lexicons, the bench observed that the words 'conduct' and 'pursue' were broad enough to embrace prosecution of all appeals. Their meanings cannot be confined to contesting the appeal filed by the only convict in the case."The objection has no legs to stand on and crumbles to the ground", the order said. The bench repelled the allegation that a letter dated May 15 was 'surreptitiously inserted' in the judicial record to make up for the absence of a government direction or to replace 'a wrong letter'. The letter in question was placed on court record along with a statement by the AG and was duly brought to the notice of the court for its consideration, the order said. The hearing will resume at 8-30am on Friday with AG Raja Qureshi arguing for the admission of the state appeals. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Pickering briefed on thorny issues ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 26: US Under-Secretary of State Thomas Pickering called on Chief Executive General Pervez Musharraf on Friday and appreciated the latter's commitment to restore democracy within three years. Accompanied by US Ambassador William B. Milam, Mr Pickering discussed a wide range of issues with the chief executive and expressed the hope that the Kashmir dispute would be settled through dialogue between Pakistan and India in accordance with the wishes of Kashmiri people. Foreign Secretary Inamul Haque was also present. According to an official press release, Gen Musharraf emphasized the centrality of the Kashmir dispute to peace and security in South Asia. He said the US should prevail upon India to accept Pakistan's sincere offer of a dialogue to resolve all outstanding problems, particularly the core issue of Jammu and Kashmir. Gen Musharraf said Pakistan was similarly committed to the restoration of a durable peace in Afghanistan through reconciliation among the Afghan parties. He reaffirmed the government's policy of restraint and responsibility in nuclear matters. He hoped that the forthcoming US-Pakistan dialogue on non-proliferation and security issues would lead to a better understanding on these matters. The chief executive also apprised Mr Pickering of the measures he was taking to revitalise the economy and carry out far-reaching political reforms so that a stable democratic dispensation could be established in the country. The chief executive recalled his useful meeting with President Clinton in March during the latter's visit to Islamabad. He said Pakistan looked forward to continuing its dialogue with the United States, and expressed the hope that the visit of the US Under- Secretary would give further impetus to the cooperation between the two countries in diverse areas. Mr Pickering said the US attached importance to its relations with Pakistan. The tense situation prevailing in South Asia was a cause of concern, he said and hoped that all outstanding problems between Pakistan and India, particularly the Kashmir dispute, would be resolved through dialogue in accordance with the wishes of the people of Kashmiri. Mr Pickering said the US wished Pakistan well. He appreciated the chief executive's agenda for political and economic reforms, particularly his firm commitment to restore genuine democracy within three years in accordance with the judgment of the Supreme Court. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Pakistan reaffirms its Nuclear policy ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 26: The National Command Authority, the apex body for nuclear command and control, on Friday reaffirmed country's nuclear policy of responsibility and restraint. The NCA meeting was presided over by Chief Executive General Pervez Musharraf amid what is seen by Pakistan as unwarranted speculation of the western media accusing Islamabad of preparing for another series of nuclear tests. Pakistan has already termed these reports as baseless and unfounded, a spokesman for the NCA said in a statement issued here today. The NCA, which was constituted in February this year for the command and control of strategic forces, also reaffirmed Pakistan's resolve to consolidate its nuclear capability as a means of deterring aggression. It also discussed a number of issues, including proposals relatingto command, control and restructuring of strategic organizations. The meeting was attended, besides the NCA members, by federal ministers, services chiefs and senior scientists. It was also decided that the NCA would meet frequently to deliberate on major policy issues related to the country's nuclear capability. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000525 ------------------------------------------------------------------- Govt assurance to IMF team: Decision on GST won't be withdrawn ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 24: The visiting five-member IMF mission headed by Ms Sena Ekin was assured here on Wednesday by the minister for finance that the government would not back out of its decision to impose General Sales Tax (GST) on retailers from the next financial year. According to the official sources, finance minister Shaukat Aziz and secretary general finance Moeen Afzal told the review mission that the government has made it clear to all the concerned trade bodies that the GST could not be withdrawn and that it was the future tax of the country. The meeting between the two sides was arranged in the backdrop of ongoing controversy over the imposition of the GST and the traders consistent view against it. The mission was told that both the GST and the tax on agriculture income would have to be recovered from 2000-2001 with a view to strengthen the country' weak tax base. In this regard the resolve of chief executive Gen Pervez Musharraf was also mentioned, with finance minister saying that the GST would become an important element of the next budget and that all necessary arrangements were currently being made to ensure its effective levy by the authorities of the Central Board of Revenues. The sources said Mr Aziz pointed out during the meeting that there was a dire need to increase the existing number of tax payers in order to not only narrow the budget deficit but also make available funds for development purposes. Mr Aziz said that holding of strikes could not deter the government to recover the GST from the traders community. He said while the government was ready to remove the apprehensions of the traders about alleged pressure and coercion by the CBR, it was just unprepared to give a second through about it as has been demanded by the leaders of the traders community. He also said that tax reform package will be announced on May 27. Later the finance minister, sources said, held an internal meeting of the finance ministry to discuss the imposition of the GST where the CBR officials were also present. He also directed the concerned officials to accelerate the pace of recovery in order to achieve the revised Rs360 billion revenue collection target for the current financial year. The IMF review mission, sources said, also held its internal meetingat a local hotel. Ahsan Mansoor, the local IMF representative, briefed the mission about various economic issues and problems the government of Pakistan was facing including the levy of GST, increasing exports and attracting foreign investment in the country. In this regard the latest round of talks between the government and the Hubco held at Dubai on last Sunday was also discussed. They expressed hopes that the World Bank sponsored talks will prove productive when the government of Pakistan would give its counter offer shortly about the reduction in tariff. Later the IMF review mission and senior government officials attended a dinner hosted by the World Bank local chief John Wall. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000525 ------------------------------------------------------------------- Japan may lift sanctions on India and Pakistan ------------------------------------------------------------------- TOKYO, May 24: Japan's ruling party plans to call on the government to lift two-year-old sanctions on India and Pakistan imposed after their tit-for-tat nuclear tests, an official said on Wednesday. A foreign policy committee within Prime Minister Yoshiro Mori's Liberal Democratic Party (LDP) has submitted the plan to Shizuka Kamei, the party's policy-making chief, the party official said. "We handed in our proposal to the chairman of the LDP Policy Research Council on Tuesday," the official, a member of the LDP's Research Commission on Foreign Affairs said. "It is up to him whether we will officially urge the government to lift the sanctions," he said. Japan imposed sanctions, including a freeze on new non-humanitarian grants and loans, after India and Pakistan carried out a series of nuclear tests in May 1998. The LDP had already made a final decision to go ahead with the proposed removal of sanctions even if the two arch-rivals did not sign the Comprehensive Test Ban Treaty (CTBT), outlawing nuclear tests, the Kyodo news agency reported. Major Japanese companies have lobbied the LDP to lift the sanctions, which they have blamed for losing them business in India and Pakistan, Kyodo said. "The two nations have yet to sign the CTBT, but we have been able to convey our strong message with the sanctions over the past two years," Taro Nakayama, who heads the LDP research commission, was quoted by Kyodo as saying. "We will continue to urge them to sign," Nakayama said.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000522 ------------------------------------------------------------------- Pakistan Origin Card scheme hits snags ------------------------------------------------------------------- Ansar Abbasi ISLAMABAD, May 21: The launching of the Pakistan Origin Card (POC) is in jeopardy because of the high price fixed for its issuance, it is learnt. The scheme, which was conceived with an idea of generating $300 million during its first year and a half to finance various projects of the National Database Registration Authority (Nadra), is now eying at the national exchequer for its survival. The fee for a five-year POC was fixed at $200 and $300 for a 10- year card. Sources told Dawn that Pakistan missions in many countries had recommended to the government that the price of the POC should be reduced. A large number of Pakistanis living abroad also expressed their reservations over the prices. According to a source in the Pakistan High Commission in London, the formal launching of the scheme, which was due on June 1, had been delayed. The advertising campaign for POC launched several weeks back on the PTV, has also stopped. According to officials, the PTV was asked to stop the advertisement some 20 days back without explaining the reasons. Nadra chief Maj-Gen Zahid Ihsan denied that the scheme had been abandoned, but he confirmed that the interior ministry was taking up the price issue with the cabinet. He said they were not proposing any revised prices and leaving the matter to the cabinet to take a decision in this regard. He said the cabinet would, however, be told that in case of drastically lowering the POC prices the government would have to finance the Nadra projects. The government expected to earn $300 million during the next one- and-a-half years through this scheme. According to plans, $112 million were to remain with Nadra for the implementation of its projects and the rest were to be shared by the foreign ministry and the finance ministry. The scheme was introduced last month by the interior minister during his visit to the US and Britain. He was accompanied by a team of Nadra officials, including the general. On its return, the team said the scheme proved to be an "instantaneous success". The POC was to be issued from June 1, and Nadra, according to an official, had already started receiving applications from overseas Pakistanis from all over the world. POC is to be a voluntary option and those who would obtain it would enjoy certain concessions to be announced by the Pakistan International Airlines. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Libya wants to buy Pakistani arms ------------------------------------------------------------------- Correspondent ISLAMABAD, May 26: Libya has expressed its willingness to import arms and ammunition manufactured in Pakistan Ordnance Factory (POF), Wah Cantt. Sources said a list of the POF products has already been provided to Major General Mustafa Kharoubi, inspector general of the Libyan Arab Armed forces. Sources said, this has been revealed in a paper prepared by the Pakistan government regarding Pak-Libya joint ministerial commission (JMC) meeting scheduled to be held very soon at Islamabad. A plan has also been prepared for boosting Pak-Libya economic relations including defence relations, sources said. According to the plan, Pakistan will focus on the following elements: frequent exchange of high-level visits, sale of the POF products, joint ventures in arm manufactures, training of Libyan army, navy and air force officers, secondment of Pakistan armed forces personnel in Libya and supply of requirements of 65,000 Libyan armed forces like rations, uniforms, shoes etc. Sources said, the plan also envisages a high-level inter-service delegation for a visit to Libya which could also include representatives from the POF Wah Cantt. "The agenda for talks may be wide-ranging and cover all areas of bilateral cooperation in defence", sources quoted the plan as saying.
=================================================================== BUSINESS & ECONOMY 20000527 ------------------------------------------------------------------- Finance minister unveils strategy: Tax evaders put on warning ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 26: The government has evolved a new strategy for broadening the tax base through documentation of economy and hopes to collect Rs100 billion in addition during fiscal year 2000-2001. To achieve this objective a phased survey of assets and income in major industrial and commercial centers of 13 cities is being launched from Saturday. "This is the requirement of house cleaning and that is why we have decided to document the economy and bring all its activities in the formal sector", Finance Minister Shaukat Aziz told a news conference here on Friday. Mr Aziz spelled out the details of the tax survey and expressed the hope that the drive would help increase the existing number of taxpayers from 1.2 million to 2 million within a year. He said the government would not tolerate any hurdle in the way of the survey. "Whether somebody likes it or not GST will be recovered", he said adding that the IMF and other donor agencies had been briefed about the imposition of GST and the survey. As soon as the drive was complete we would have the necessary information to launch a crackdown on tax evaders, who would be dealt with full force, that would not only entail penal provisions but also arrests and imprisonment. The minister also said that a total of 1,040 employees of the CBR had been sacked on charges of corruption. Their names would be made public in the next three or four days. Among the 109 dismissed officers six were in grade 21, 34 in grade 20, 43 in grade 19, 55 in grade 18, and 52 in grade 17. While 850 employees belonged to grade 7 to 16, he said. Mr Aziz did not mention under what law these employees have been sacked and whether they have been served with show-cause notices or provided any opportunity to explain their positions. The new tax reforms, he said, included reduction in number as well as rate of taxes and penalties, both at the federal and provincial levels, simplification of assessment and collection procedures, reforms in labor levies, efficient dispute resolution, broadening of the tax base and enhancing the efficiency in tax administration. The minister said 13 major cities had been chosen for survey which included Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Hyderabad, Gujranwala, Faisalabad, Sukkur, Multan, Quetta, Sargodha and Sialkot. "Even within these cities, the initial target of survey would be the posh residential areas, commercial centres and industrial establishments", he said. He added the drive would encompass three taxes - income tax, sales tax and excise duty - for which 1,600 officers of the CBR would be engaged backed by army personnel and law enforcement agencies. The FM promised that there would be a minimum contact between the tax agencies and taxpayers. He added that the government would not allow victimization of any citizen during the survey. During the first phase of the drive, he said, teams would distribute forms and secure acknowledgement. There would be no interaction with the taxpayers during this process except to solicit acknowledgement receipts of the form. A period of 5-7 days would be allowed before the teams return to collect the filled forms. In the second phase, the teams would review the declaration in their field offices and cross check the data with other records, such as building societies and utilities. In case there are no discrepancies, the information would be accepted and tax registration number would be allotted, wherever needed. In the third phase, in the case of residential forms, discrepancies will be communicated through formal notices and disputes would be disposed of under the ordinary procedures. For commercial and industrial establishments, discrepancies would be finalised after a return visit of the survey teams, he said. In the case where the survey teams differ from the declared assessment, it would give an option to the owner to either accept their revised assessment or agree to a detailed inspection. If they opted for a detailed inspection, a new team, comprising an accounts professional, would arrive to carry out their inspection. For cases assessed and agreed, tax numbers would be allotted, if needed, and assistance provided for future compliance. On GST, the minister said it would be recovered from July 1, 2001 and that it would not be applicable on retailers with a turnover of Rs1 million. For retailers with turnover of upto Rs5 million, 2 per cent GST would be applicable. They would be required to maintain simple accounts of their sales and purchases. For others, GST on value-added tax (VAT) mode would be applicable or for one year they may continue to pay a 2 per cent GST on turnover. There would be a simple record keeping requirement for establishments with turnover between Rs1-5 million. No invoice would be required for sales, but record for daily total sales each purchase and closing inventory would be required on a quarterly basis. For traders with turnover of over Rs5 million, invoices would be needed for sales together with the record of each purchase and closing inventory on a quarterly basis. Those who wanted to opt for VAT mode, complete record keeping of sales and purchases and expenses will be required. Previously unregistered persons, who register under the GST, will not be liable to sales tax prior to July 1. However, compliance is mandatory from the same date even if the survey team reaches any person after that date. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000523 ------------------------------------------------------------------- Devaluation: SBP denies rumours ------------------------------------------------------------------- KARACHI: The State Bank said on Monday that it had come to the attention of "the authorities" that rumours about devaluation of Pakistani rupee, freezing of bank accounts and lockers are being spread by some groups with vested interests for their personal gains and speculative purposes. "The State Bank of Pakistan vehemently denies these rumours and appeals to the general public and the business community to carry on their business in a calm, routine and normal manner." "They should not pay any heed to these unfounded rumours," it added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000524 ------------------------------------------------------------------- Budget 2000-2001: New dams, agriculture & tax reforms suggested ------------------------------------------------------------------- Reporter LAHORE, May 23: Political leaders have stressed the need to provide for the construction of new dams and water reservoirs, formulation of comprehensive policy to improve the agriculture sector and introduction of wide-ranging tax reforms in the budget 2000-2001. Talking to Dawn on Tuesday, Pakistan Awami Ittehad president and Grand Democratic Alliance (GDA) leader Nawabzada Nasrullah Khan underscored the need for constructing new dams to avoid a famine- like situation in future. He said the government had declared 22 districts out of a total of 26 in Balochistan as calamity-hit areas where 40 per cent cattle were said to have perished in the recent weeks due to drought and hundreds of people were reported to be suffering from lethal diseases. A similar situation persisted in Thar, Cholistan, Dera Ghazi Khan and parts of the NWFP. "It's not a recent phenomenon but has evolved over a long period of time because no timely action was taken to head off the calamity. If we don't move to construct new dams, we may soon be facing famine as experienced in some African countries like Ethiopia." He said there was a strong need to strengthen the agriculture sector as well as industry. Growers were not getting fair prices for their crops be it cotton or any other, he added. "The government has already abolished the flat power rates for tubewells and raised the diesel prices increasing the production cost which will have a negative impact on 70 per cent population of the country living in the rural areas. The need of the hour is that measures should be taken (in the forthcoming budget) to improve the lot of farmers and encourage value-added industry," he asserted. The Nawabzada regretted that there would be no parliament or assembly to discuss the proposed budget and suggest amendments to it in accordance with the aspirations of the people. He said the country was isolated in the world due to absence of democracy to the extent that the prime minister of brotherly country - Turkey - chose to visit India and not Pakistan. The Turkish leader, he said, had also equated the Kashmir issue with the Kurdish issue and expressed sympathy with India (on the alleged incidents of terrorism).Moreover, the GDA leader said, aggressive Indian designs posed a great threat to the security of the country. The Indian leaders and army officials have threatened to impose a war on Pakistan if what they described as cross-border terrorism continued. In the meanwhile, the forces of confederation were raising their heads in Sindh and elsewhere in the country. "The present conditions demand that a popularly elected government should be installed at the earliest to resolve the internal and external challenges facing the country." Pakistan Awami Tehrik (PAT) Chairman Tahirul Qadri has stressed the need for giving priority to agriculture sector in the next budget. He said agro-based industry should be encouraged for increasing production and promoting exports. Successive governments had obtained Rs 1,800 billion in loans during the last 12 years but had not spent a single paisa to ameliorate the lot of the poor of the country. He said new water reservoirs needed to be constructed all over the country, especially in Balochistan. There was a strong need to promote technical education in the country so that the youth could get jobs when they finish their education, he added. He said overseas Pakistanis had over $50 billion in savings. They should be encouraged to invest in Pakistan by giving incentives and constitutional cover to their investments. He was hopeful that social sector would get its due share in the budget and the budget makers would not take dictation from the IMF. He also urged the government to associate politicians in the budget-making process to meet the challenges facing the nation and revive its economy. PML Senior Vice-President Ejazul Haq said the government should introduce a tax reforms package. He said to make the tax amnesty scheme a success, the government should reduce its rate from 10 per cent at present to five per cent. Similarly, the sales tax scheme could be made acceptable by reducing its rate from 15 per cent at present to five per cent. He said to document the economy, the government should return the entire tax received during the first two years. This way, he said, while the traders would not lose anything, the government would succeed in its target. The PML leader proposed that the government should also reduce the rates of various taxes to make them acceptable to people. He proposed a close collaboration between the army, politicians, traders and feudals to improve the economy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000526 ------------------------------------------------------------------- Govt accepts demand: Ghee makers call off strike ------------------------------------------------------------------- Bureau Report ISLAMABAD, May 25: Pakistan Vanaspati Manufacturer's Association on Thursday called off their strike after acceptance of all of their demands and 'clarifications' from both Commerce Minister Razzak Dawood and the association. "Their demands had already been accepted only misunderstanding, which had cropped up in Tuesday's meeting were removed in Thursday's meeting," an official told Dawn. All the demands including imposition of 25 per cent duty and 15 per cent sales tax on the import of all oil seeds, rationalization of tariffs on import of edible oils, removal of anomaly by levying uniform duty on all soft oils, import of palm olein instead of RBD palm oil, performance appraisal of Pakistan Oilseed Development Board, acceptance of full and final assessment of income tax, acceptance of declared transacted value of imported edible oils, 30 days free storage period of edible oils, withdrawal of sales tax on hydrogen gas, withdrawal of 15 per cent sales tax and 5 per cent excise duty on metal containers were accepted by the government. These demands would be incorporated in the next budget, Mian Hanif an executive member of PVMA said. The PVMA delegation led by acting Chairman Saleem Malik also called on Finance Minister Shaukat Aziz. "It was a courtesy call," Hanif said. All the demands of PVMA were genuine and in the economic interest of the country, he said. When asked as to what was the misunderstanding between the minister and some members of PVMA, he said, there was no use of discussing the issues which had been amicably resolved. He said they apprised the minister that by import of oilseeds the country was suffering huge loss of foreign exchange. He said they import oil at a rate of $325 per tons while the oil seeds were imported at a rate of $240 per tons. "From one ton oil seed only 40 per cent oil is extracted which cost approximately around $550 per ton," he said. The country last year imported 900,000 tons of oil seed which caused huge loss of foreign exchange, he added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000525 ------------------------------------------------------------------- IMF team looking at exchange rate policies ------------------------------------------------------------------- M. Ziauddin ISLAMABAD, May 24: The visiting IMF team is taking a closer look at Pakistan's exchange rate policies to see if they are compatible with the undertakings the country has given under Article IV of the IMF's Articles of Agreement. The Fund team is reportedly also examining the exchange policies to see what measures were being used to avoid manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or gain an unfair competitive advantage over other members. Informed sources said that the visit and the team's focus on exchange policies was nothing new as every year around May-June the Fund sends its team to make an appraisal of this country's economy specifically in the light of Pakistan obligations under Article IV. Under this Article Pakistan has also undertaken to endeavour to direct its economic and financial policies toward the objective of fostering orderly economic growth with reasonable price stability, with due regard to circumstances. Pakistan is also obliged under this Article to seek to promote stability by fostering orderly underlying economic and financial conditions and a monetary system that does not tend to produce erratic disruptions. Under an international monetary system, exchange arrangements may include: 1. The maintenance by a member of a value for its currency in terms of SDRs or another denominator, other than gold, selected by the member, or 2. Cooperative arrangements by which members maintain the value of their currencies in relations to the value of the currency or currencies of other members, or 3. Other exchange arrangements of a member's choice. Under this arrangement the Fund is obliged to exercise firm surveillance over the exchange rate policies of members, and adopt specific principles for the guidance of all members with respect to those policies. On the other hand each member is obliged to provide the Fund with the information necessary for such surveillance, and when requested by the IMF shall consult with the Fund on its exchange rate policies. Meanwhile, it has been learnt that the report which the visiting Fund team will prepare on its return would be released for publication on voluntary basis. A pilot project for such a release of all Article IV staff reports was approved by the IMF Executive Board (EB) on April 5, 1999. Under Article IV, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with the officials the country's economic development and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the EB. The views expressed in an Article IV staff report itself are those of the staff team and do not necessarily reflect the views of the EB or of the member government's. The views of the EB are summerized in the Public Information Notice (PIN) which is attached to Article IV report. Comments by the member country governments on the staff report are also attached, if any were submitted at the time of the EB discussion. The policy for publication of Article IV staff reports under the pilot project allows for the deletion of market sensitive information. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000525 ------------------------------------------------------------------- CBR holding back Rs15-20bn in ST refunds, says CTA ------------------------------------------------------------------- Reporter KARACHI, May 24: The Convener of Council of Textile Associations (CTA) S.M.A. Rizvi on Wednesday claimed that around Rs15-20 billion is held back by the CBR against outstanding sales tax refunds of exporters. Addressing a press conference at Karachi Press Club (KPC) the CTA chief, a representative of 17 bodies of exporters- cum- manufacturers, alleged that corrupt bureaucracy was bent upon to influencing the military government against business community by labelling them as tax evaders. He claimed that over 90 per cent of government revenue is being contributed by business community through direct or indirect taxes as income tax, adding, in certain categories it has been replaced by presumptive, withholding and other similar taxes. S.M.A. Rizvi further said that the export sector alone pays over Rs20 billion towards national exchequer, while total direct taxes paid by business community are Rs123 billion, sales tax Rs107 billion, excise duty Rs63 billion and customs duty Rs68 billion. Against this, he said businessmen are being harassed, humiliated and intimidated by the corrupt bureaucracy which draws salary from the taxes paid by them. On the other hand the biggest defaulters of taxes such as politicians, statesmen, feudal lords are leading a hassle free and honourable life. The CTA convener said that the only crime of businessmen was that they had been demanding simple tax laws assuring least interference from the bureaucracy. "The revenue collecting authorities should be deprived of cruel, unjust and unbridled discretionary powers which is the main source of corruption and harassment for the business community," he added. Citing an example, he said the case of exporters- cum-manufacturers which is not only registered but also reasonably well documented, but unfortunately are victimized most by the sales tax authorities. He said the tragic incident of a death of an exporter in the custody of sales tax department at Faisalabad would have never happened if such discretionary powers were not bestowed upon the tax collector. The CTA chief said that when sales tax was imposed in 1996, an assurance was given that the laws would be rational, easy to understand and the return forms would be easy for filing with the government. Contrary to this, he said, the position as at present is that the laws have been made extremely complicated and really incomprehensive by even an educated businessman. Draconian clauses like 37 and 38 are being misused by the tax authorities to an extent that it has really made the lives of exporters miserably, he added. The biggest tragedy, he said is that whenever a new tax collector takes the charge of a circle, he interprets the Sales Tax Act in his own manner and nullifies all the settled cases of the past and starts the exercise afresh right from the year 1996. Above all, he said that the number of audits has increased from one to six, in addition to departmental scrutiny practically all the year round at the sweet will and whim of an officer. He demanded that all notices and demands issued by the Department of Revenue and Receipt Audit (DRRA) should be withdrawn till such time the factor of wastage in accordance with the formula is agreed with the manufacturers, the sales tax authorities and the Export Promotion Bureau (EPB). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Govt to clear refund claims ------------------------------------------------------------------- Correspondent ISLAMABAD, May 26: The federal government has decided to release most of the refund money claimed by the export sector. The decision has been taken after examination of a number of reports by survey teams during the past three weeks at CBR. A major chunk of the withheld refund/rebate amounts claimed by the export sector would be released within a fortnight, say CBR officials. "The CBR has taken this decision to honour the finance minister's announcement last Tuesday that the export sector would continue to be assisted fiscally, in boosting the exports", said a senior official. Dawn learnt from officials that the CBR had withheld these refunds for two main reasons: to verify most of the claims filed for refunds and rebate repayment during the past 4-5 months; and to boost its net collection which would have been Rs 245-50 billion, and not Rs 269 billion (in the first 10 months) if these payments had been made. It was further learnt that the CBR set up a committee to examine the reports based on verification in Lahore, Karachi and Gujranwala, which concluded that most of the "minor" observations in the refund claims to be settled in the post-release audit. The CBR officials say that an amount of Rs5-6 billion is under observation. The rest of about Rs16 billion, say CBR officials, has been withheld "only to keep the net collection figures up", said a senior CBR official. He added that the CBR has also instructed the collectorates in major industrial estates to strike a deal with major refunds/rebate claimants for an adjustment of the refund/ rebate amount in their future (July/August) tax assessment. This way, the CBR officials say, the CBR keeps its net collection figures maintained at a higher figure than the actual amount collected. The refund/rebate amounts were stopped early last month, "as usual", in line with the CBR's policy of withholding most of these amounts in the last quarter, especially in May and June. A slow- down was applied on processing the refund/rebate applications. This resulted in protest from the trade and business sectors, and "a notice was taken by the government to resolve the issue", said a CBR ST wing official. The CBR had earlier informed the government that at least Rs 4 billion had been paid in excess of the actual payable amounts in refund/rebate during 1998-99 to export manufacturers. It had come to light that the amount was paid against "doubtful" import invoices and fake shipping bills. The investigations have remained inconclusive in this regard, and the CBR had decided to avert the same situation this year. This policy resulted in withholding major refund/ rebate amounts. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Rs22 billion wiped out from market capitalization ------------------------------------------------------------------- Reporter KARACHI, May 26: The KSE 100-share index on Friday plunged by six per cent or 93 points on massive panic selling from all and sundry wiping out Rs.22bn from the market capitalization just in one go as fears of an imminent collapse of the market gripped the rings. Rumours of default on the part of some Punjab brokers as they failed to meet their delivery obligations owing to steep decline in prices was said to be an aiding bearish factor. The breach of barrier of the 1,600 points at 1,510.45 points reflects that the next resistant level is also vulnerable if the rescuing operation was not launched by the relevant quarters at the current lows, said a member of the KSE adding, "the corrective steps now are beyond the control of counter market forces as it not be easy to absorb the virtual flood of the cheaper floating stock". Although the index partly managed to recoup some initial losses, the market remained in a terribly bad shape as waves of panic selling from all quarters did not allow bulls even a breathing space to take corrective steps to blunt the intensity of the current speculative sell-off. "The six per cent plunge in the index could well mean that another Rs22bn were wiped out from the total market capitalization and such a massive loss for a single trading session reflects investor perceptions about the market direction", said a leading floor broker. "There was a panic all around after the KSE index breached the jealously guarded psychological barrier of 1,600 point level," stock analyst Faisal Abass said, "everyone was guessing why the bears are on the rampage and people are following them in a bit haste, of course, after having suffered massive losses". However, it narrowly escaped the breach of next barrier but in the process suffered a massive battering, as the index was last quoted off over 101 points or 8 per cent around 1,502.00 as compared to 1,603.54 a day earlier. The market is in the tight grip of speculative traders aided largely by Punjab-based politically motivated-selling and until financial institutions did not play their assigned roll, any other rescue operation may not work, most floor brokers believe. The market should have behaved orderly in the wake of reports of finance minister's Monday visit to the KSE to have discussions with the board members on the new budget due to be announced on June 17, they added. But speculative forces are not inclined to give even a breathing space to the consolidation forces and continued to indulge in fresh hasty selling on the high profile issues. "It appears now pretty difficult to predict about the market behaviour even for the near-term", said a member of the KSE adding, "the market is flooded with the cheaper floating stock but there are no willing buyers". Most of the leading MNCs led the market decline but it was intensified owing to the relative weakness of the textile, synthetic and banking sectors, which showed widespread decline on persistent selling both from the genuine investors as well as jobbers. Minus signs were strewn all over the list as investors were in a bit haste to get out of the market, leaving behind a long list of causalities. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000527 ------------------------------------------------------------------- Textile Vision 2005: Bankers want focus on updated technology ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, May 26: Lead banks and financial institutions are of the view that the proposed five-year textile policy should also focus on transfer of up-to-date technology into Pakistan without which the textile sector cannot grow. Bankers told Dawn that the issue came to the fore when heads of four state-run banks and three development financial institutions gathered at State Bank office here on Friday to get a briefing on Textile Vision 2005. They were briefed by Chairman of SMEDA-Small and Medium Enterprises Development Authority Iqbal Mustafa. The list of the banks and DFIs included (i) National Bank (ii) Habib Bank (iii) United Bank (iv) Muslim Commercial Bank (v) Pakistan Industrial Credit & Investment Corporation (vi) National Development Finance Corporation and (vii) Small Business Finance Corporation. SBP governor Dr Ishrat Husain, who chaired the session, told top bankers that the briefing was arranged to elicit their views on revival and growth of textile sector on Textile Vision 2005-a five- year textile policy. The policy being chalked out to prepare Pakistan for a free global textile market by year 2005 may be out in June 2000. Sources privy to the briefing said the bankers highlighted the issue of transfer of technology into Pakistan when they were informed that the new textile policy would focus more on exports of value-added products. "Exporting value-added products require availability of up-to-date technology which developed countries are reluctant to transfer into Pakistan," one participant said.Bankers generally agreed that developed countries often sell or transfer those textile technologies into Pakistan that are no more in use on their own soils. This creates problems for local manufacturers to come up with value-added textile products in line with the specifications of buyer countries where trends keep changing rapidly. The sources said the bankers also underlined the need for the textile sector to have a larger number of composite or integrated manufacturing units. The bankers were of the opinion that a conglomerate of textile units engaged in weaving, spinning and manufacturing of textile made-ups not only ensures better quality but also cuts the cost of production and makes marketing easier. They said the bankers were of the opinion that the long-term textile policy should also ensure availability of quality raw materials that can meet the specifications of buyers of Pakistani textile made-ups. The sources said the briefing was very comprehensive and the bankers were informed in detail of how the government plans to revive various sub-sectors of textiles. They said the bankers were told that the implementation of the policy requires more than Rs300 billion worth of fixed investment in the textile sector in five years. They said that the bankers informed the chairman of SMEDA that some major banks and development financial institutions had already started providing finances for BMR projects in the textile industry whereas the others are to follow suit. The sources said that heads of lead banks and development financial institutions were asked by the SBP chief to forward formal recommendations on textile policy in the next meeting that would be held within a week or two. Senior State Bank officials and an advisor to the ministry of finance also attended the briefing. Sources close to the SBP said the SBP officials are busy revising the export refinance scheme to enlarge its scope to meet the objectives of the Textile Vision 2005 and check misuse of the scheme. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000524 ------------------------------------------------------------------- Forward premium on $ shoots up ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, May 23: The price of the dollar rose in future deals in the inter-bank market on Tuesday but in spot transactions it remained unchanged at Rs 51.90. Senior bankers said most banks were selling the greenback 68-70 paisa above spot price for six month and 30-32 paisa above spot price for three month: Till Monday forward premiums hovered around 45-50 paisa for six month and 15-20 paisa for three month. Bankers said the premium on one month forward deals also rose to seven-eight paisa on Tuesday against one-two paisa on Monday. They attribute the sharp increase to a rush on the greenbacks by panic- stricken importers who fear that the rupee would somehow shed its value in next fiscal year. But in spot transactions the price of the greenback remained unchanged at Rs 51.90-thanks to an unofficial cap on inter-bank exchange rates. Bankers say the SBP placed this cap immediately after floating the rupee in May 1999. Bankers say the rupee has been under pressure for the past few days on increased outflows of foreign exchange and larger forward buying by importers fearing rupee depreciation at the end of this fiscal year in June. How then they are warding off the pressure in the presence of what they call a cap on exchange rates? "Many a bank are conducting spot transactions in the guise of one-day future deals," explained treasurer of a foreign bank. "Banks are selling the dollar for Rs 51.99 in value-tom (tomorrow value)," says treasurer of another bank. On Tuesday also, the dollar changed hands between Rs 51.97 and Rs 51.99 in "value tomorrow." In kerb market, the green bill closed at Rs 54.40 and Rs 54.45 for spot buying and selling showing a five paisa recovery overnight. The president of Forex Association of Pakistan, Malik Bostan attributed this recovery to a strong denial about rumours of rupee devaluation and freezing of bank accounts or lockers by the State Bank carried in Tuesday papers. "The dollar had risen to Rs 54.50 on rumours of all sorts. The SBP denial brought it down," he told Dawn by telephone. "Besides we also injected $2-3 million in the market to ease off the buying pressure on dollar." But several senior bankers reached by Dawn said the forward premiums rose partly in reaction to the SBP denial: some of them said the denial was uncalled for. The other reason-and that is rather more important-is that businessmen and bankers feel that the so-called cap on inter- bank exchange rate may either be removed or placed at an upper level by end June. But officials say this may or may not be the case depending upon such key factors as real effective exchange rate of Pakistan vis-a-vis those of its major trading partners. The fact that Pakistan is facing a foreign exchange crisis is evident from the fact that the SBP had to purchase more than $1.3 billion in the first nine months of this fiscal year from the kerb market.Back to the top
=================================================================== EDITORIALS & FEATURES 20000521 ------------------------------------------------------------------- Law and order ------------------------------------------------------------------- Ardeshir Cowasjee IN order to reconstruct we must revert to the "ideology of Pakistan" and to the premier dictum of its Founder and Maker Mohammad Ali Jinnah: "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." Pakistani banks and lending institutions which handle state money and the people's money were nationalized on New Year's Day 1974 by Zulfikar Ali Bhutto for a highly nefarious purpose - to allow him and his government to lend to those who could not repay and were thus unable to borrow from elsewhere in accordance with banking norms. Our last two 'democratic' prime ministers, Benazir Bhutto and Nawaz Sharif, plus their cohorts and admirers, robbed as much as they could from these very same institutions with the express purpose of not repaying anything, having successfully 'fixed' the relevant law-makers, law-dipensers andlaw-enforcers. What I narrate illustrates how money is lent and recovered in recognized practising democracies where law and order prevails. Hudabiya Paper Mills Ltd (first defendant), Mian Mohammad Shahbaz Sharif (second defendant), Mian Mohammad Sharif (third defendant) and Mian Mohammad Abbas Sharif (fourth defendant) , under English law and jurisdiction borrowed money from Investment Funds Ltd, operated by Al Towfeek Company (the plaintiff). Abiding by the Pakistani norm, they did not repay the loan. Al Towfeek went to court and the Order of Master Rose (The masters of the various divisions of the high court deal with routine matters) of September 4, 1998, was duly served upon Hudabiya and the three Mians of Lahore. Employing the usual delaying tactics, as applied in the land over which they misruled, the Mians filed an application in the court asking that the order and the service of the proceedings be set aside. The application was heard in chambers by Mr Justice Buckley of the Queen's Bench Division. He wrote a one-page order on February 5, 1999, (as opposed to a 100-page judgment) which reads as follows: "Upon the defendants' application for an order that the Order of Master Rose of 4 September 1998 and the service of proceedings be set aside pursuant to RSC Order 12 Rule 8 and that the plaintiffs do pay the defendants costs to be taxed forthwith and upon hearing leading counsel for the plaintiff and the defendants and upon reading the following affidavits : . . . . . [13 affidavits listed] "It is hereby ordered that: 1) the defendants' application under RSC Order 12 Rule 8 be refused. 2) Costs of this application be paid by the defendants to the plaintiff to be taxed if not agreed." On March 16, 1999, the court delivered its judgment ordering Hudabiya and the Mians to repay the loan. The amount due was not paid and on November 5, 1999, Master Trench by a one-page order ordered that the properties of the Mians be attached. "Upon reading the witness statements of Shezi Nackvi filed herein on the 26th October, 1999l, and 5th November 1999 whereby it appears that by a judgment made on the 16th March 1999 in the High Court of Justice, Queen's Bench Division, the second defendant was ordered to pay to the plaintiff the sum of US$417,719,315.26 or its sterling equivalent of which US$418,673,203.86 remains due and unpaid as at 19th October, 1999, and the third defendant and fourth defendant were ordered to pay to the plaintiff the sum of US$414,712,912.18 or its sterling equivalent of which US$415,504,732.37 remains due and unpaid as at 19th October, 1999, and that the second defendant, third defendant and/or fourth defendant has a beneficial interest in the assets specified in the schedule hereto. "It is ordered by Master Trench that unless sufficient cause to the contrary be shown before a judge in chambers in Room No. E101, Royal Courts of Justice, Strand, London on the... day of 1999, at o'clock, the second and third and the fourth defendant's interests in the said assets, to the extent of their respective interests, shall and it is ordered in the meantime it do, stand charged with the payment of US$418,673,203.86 or its sterling equivalent due on the said judgment as against the second defendant and US$415,504.732.37 or its sterling equivalent due on the said judgment as against the third and fourth defendants and interest thereon at the statutory rate together with the costs of this application. "And it is further ordered that the plaintiff have permission to serve upon the second defendant, third defendant and fourth defendant in Pakistan a copy of this order together with a copy of the witness statements of Shezi Nackvi. "And it is further ordered that this application and all documents supporing it be served on the companies named in para 16 of the first witness statement of Shezi Nackvi, as to which leave is granted to serve them in the British Virgin Islands, and also the creditors named in paragraph 4 of the said Mr Nackvi's second witness statement, as to which leave is granted to serve the same in Pakistan or in the state or states where any of them are registered." The schedule lists the four properties owned in London by the Mians of Lahore: 16, 16A, 17 and 17A Avenfield House, at 117-128 Park Lane, London. End of story. The Mians paid up and settled with the lenders. Master Trench recorded the 'consent order' signed by the solicitors of both sides on January 25, 2000 which reads as follows : "Upon the plaintiff and the first, second, third and fourth defendants having agreed to the terms of the deed referred to in the schedule hereto "And upon the plaintiff by its solicitors undertaking not to enforce or execute judgment, or take any further steps whatsoever, in the action against the first defendant, save insofar as permitted by and in accordance with such terms "By consent it is ordered that: 1) All further proceedings in this action be stayed, on the terms more particularly set out in the deed described in the schedule to this order, as between the plaintiff and the first, second, third and fourth defendants except for the purpose of carrying this order and the said terms into effect for which purpose the parties are to be at liberty to apply, including in particular, to apply in accordance with this order to enforce judgment against the defendants in this action in the event of non-compliance with Clause 3 of the said deed. "The charging order nisi granted by Master Trench on November 5, 1999, be discharged forthwith upon payment in accordance with Clause 3 of the said deed with no order as to costs." To another matter, the power companies. HUBCO, KAPCO, and others have made shady deals involving, but not limited to, the companies themselves, the World Bank, other international lending agencies and our worthy 'democratic' prime ministers Benazir Bhutto and Nawaz Sharif aided by their team-mates. However, what is signed by the government must be honoured unless it can be commercially resolved out of court. The contracts with the power companies provide for international arbitration and WAPDA and the Government of Pakistan (whether civil or military) are bound by this provision. No foreign investor will invest in Pakistan if he is denied international arbitration and is compelled to take disputes to the Pakistani courts which he does not trust and is convinced are government-controlled and manipulated. The power companies are well aware of what they have done and are inclined to settle out of court. A commercial settlement is beyond the competence of military men. Our Finance Minister Shaukat Aziz should be empowered to lead a delegation of competent men of integrity trusted by the people to settle the outstanding issues. The Asia Society annual corporate conference held this month in Shanghai was attended by a thousand delegates from all over the world, western and eastern, and was addressed by the prime minister of China and 43 leading world personalities in the political and business fields. The presence of our ambasador in Beijing, Riaz Khokar, marked our existence. No mention of Pakistan was made by any speaker, the country might not have been a part of Asia - or even of the world. Of the greatest concern now is the physical law and order situation in Karachi. The least that a military government can do is to use, if and when necessary, the force and power it has at its command to stop rioters and arsonists from killing people and destroying public and private property. Case in point : the ransacking and burning of the offices of the Business Recorder on May 18. This government cannot be forgiven for what happened. If it had the will (the wherewithal it has), the least it could have done was to have ensured that no such incident took place. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000526 ------------------------------------------------------------------- Learning politics the hard way ------------------------------------------------------------------- Ayaz Amir WHO would have thought only a short time ago that the supremely confident General Musharraf, taking a leaf out of the soiled books of General Zia-ul-Haq and Nawaz Sharif, would see the point of going to lowly roofs to offer prayers for the dead? But this is precisely what he did this week, taking time out of his busy schedule to first visit Lahore to condole the death of the trader, Nadeem Akhtar, who fell a victim to the interrogating zeal of the Faisalabad Sales Tax Department and then, the same day, to fly onwards to Karachi to offer fateha at the house of the slain clerical figure, Maulana Yousaf Ludhianvi. While talking to the Maulana's family the general said that the demand being voiced by religious circles for declaring Friday a holiday would be given careful consideration. He also let it be known that he would be addressing the nation every month, something for which, until now, he has not felt the need. These have been small gestures but in them can be seen the seeds of a reluctant turnaround. This was a government glorying in its insularity, sure of its power and convinced that it knew all the answers. Now it is learning politics the hard way, not from the press or discarded politicians but at the hands of traders and maulvis. Over the anti-blasphemy law the military government was well- advised to beat a hasty retreat because in the circumstances it would have made no sense to get embroiled with the religious lobby. The issue was peripheral and should never have been raised at this stage. But how will the government fare in its coming battle with the traders? There is no denying the need for documenting the economy and cracking down on tax evasion. But then there is also no denying the need for cracking down on illegal weapons, smuggling, drug trafficking, corruption, bribery, sifarish and the hundred other ills which plague Pakistan? The question is not one of desire, because all of us want to ride the moon and see Pakistan strong and prosperous, but of what is possible and what is not. A man wanting to climb Everest prepares for it. In fact, if he is a dedicated mountaineer, his whole life will be a preparation for it. Before going onto the offensive an army builds up its strength and tries to acquire superiority in numbers and materiel over the enemy. This is not rocket science but elementary wisdom. The military government, however, right from the start has been embarking on half-cocked initiatives without thought or preparation. The subsequent retreats have thus come as no surprise. Was some of this attitude born of the events of October 12? Having bundled out Nawaz Sharif very easily, was the army under the impression that solving other problems would be equally easy? If so, it has been labouring under a delusion. In Pakistan about the easiest thing to do is to oust a civilian government. A few truckloads of soldiers from 111 Brigade stationed in Westridge and the trick is done. By contrast, getting a patwari or a thanedar, let alone anyone else, convicted for bribery or dereliction of duty is infinitely more difficult. The wisdom of the parade ground simply does not work that effectively in all situations. Also instructive is the case of the interior minister now mercifully quiet these past few days. He has declared any number of offensives against illegal weapons, smuggling, Bara markets and even traders. What has become of them? Even otherwise, in the seven months that it has been around, the only conspicuous success that the military government can claim is against street vendors and hawkers who have been driven away from busy streets. For the rest, its achievement chart is singularly empty. Is this too harsh a judgment? If so, what is the state of law and order? Is the economy reviving? Are people 'feeling' better, the feel-good factor being very important in evaluating any government? Is popular enthusiasm on the same high level as it was on the morrow of October 12? The accountability drive is in a shambles, its pace too slow, its direction increasingly unclear. The showpieces on display in the National Security Council and the various cabinets are curiously listless creatures. There has already been some bloodletting in Sindh with the governor gone and some faceless ministers having stepped down with him. But the vacuousness which is perhaps the most conspicuous feature of this government goes beyond a single province. Part of the problem lies in the reality of power which lies elsewhere: in the shadows and in the hands of a very few key players. Juntas and wheels within them we have had before - most notably under Yahya Khan when a few generals called the shots. But those were different times and even though not a few politicians were veritable firebrands, and there was ferment in the eastern wing, Pakistan was a simpler place to run. Today, the political class, especially its leadership, has acquired all the characteristics of dumb cattle but Pakistan's problems are infinitely more complex and intractable. As the last seven months have demonstrated, these problems are not amenable to parade ground solutions. Will the documentation drive be any more successful? The signs are not auspicious. For one, the question forms required to be filled are much too intrusive. If this were happening in the United States, the US government would have an armed revolt on its hands spearheaded by the National Rifle Association. But this is a matter of detail. The more important question is: does the government have the capability to successfully carry out such a massive exercise? The majesty of the Pakistani state, afflicted with various diseases, has fallen on bad times. It is still superbly equipped to make life difficult for its citizens. But securing public safety, dispensing justice, collecting taxes - arguably, its basic and foremost functions - it stopped performing a long time ago. Can it now go about documenting the economy? Stalin did not proceed with the collectivization of agriculture, an article of faith with the Bolshevik party, before Soviet power had been fully consolidated. Indeed no successful revolution, if it wishes to remain successful, plays around with half-baked or premature plans of reform. In seven months time the military regime has been unable to touch, let alone reform, the administrative machinery. But with blunt instruments at hand, and again without adequate preparation, it is about to embark upon one of the most difficult ventures in Pakistan's history. Since the art of communication is not one of the strong points of this government, there is a lot of confusion about what documentation is going to entail. From what has emerged so far, including the promulgation of the ordinances specifying punishments in case of not filling the survey forms or of providing false information, the impression created is of a massive exercise in coercion which the government has in mind. Will it work? The Sikhs made coercion a successful tool of taxation but then in the Khalsa kingdom it was only the Khalsa court, the Khalsa grandees and the Khalsa army which prospered. Nothing else, not even the trees by the side of the roads. If we were doing all this ourselves it would still be some small consolation. But, as everyone knows, all this is being done at the behest of the IMF and on the strength of the strangest arguments. Indeed, we are being told that in order to break the IMF's chains over the long term, we must strengthen those very chains in the short term. True, our choices are limited. Despite our nuclear firecrackers, we are a nation of beggars waiting anxiously for the next international handout. But it is equally true that since the end of the Second World War more countries have been brought to ruin by the IMF than by wars or natural disasters. Are we so blind as not to see the writing on the wall?
=================================================================== SPORTS 20000525 ------------------------------------------------------------------- Eight cricketers fined for match-fixing ------------------------------------------------------------------- Farhana Ayaz ISLAMABAD, May 24: Upholding all the recommendations of one-man judicial commission of Justice Malik Qayyum, Pakistan Cricket Board on Wednesday slammed life ban on Salim Malik, Ataur Rehman and fined six other cricketers, including four of the current Pakistan squad from Rs300,000 to Rs 100,000. All the contents of the recommendations will be applied forthwith and the cricketers implicated could move the court if they so wished. Malik has also been fined one million rupees and cannot take part in any activity relating to cricket, the report said. Former captain Wasim Akram would be fined 300,000 rupees and stripped of the captaincy, the report suggested. Leg spinner Mushtaq Ahmed was under allegations of match fixing and was fined 300,000 rupees. Four other players, Waqar Yunis, Akram Raza, Saeed Anwar and Inzamamul Haq, were fined 100,000 rupees each. Speaking at at a crowded press conference, chairman of Pakistan Cricket Board (PCB) Ad hoc Committee, Lt Gen Tauqir Zia made the long-awaited match-fixing and betting report public with a five- page summary admitting that the issue was a global reality. However, the chairman said that no planned betting and match-fixing had been found in Pakistan team but a few players had been found implicated at individual level. The chairman, who met President Rafiq Tarar at the presidency on Wednesday morning, said that the report had the blessing of both, the patron of PCB President Tarar as well as the chief executive Gen Pervez Musharraf. The chairman applauded the trying efforts put in by Justice Qayyum in completing the report and maintained that not a word of the report had been tampered with. Changes in the PCB set up, change in the government and resolving the legal framework of the report were given as the three reasons for delay in making the report public. The entire 149-page report will be made public through the Pakistan Cricket Board web-site starting at 10.00pm. The chairman clarified that the current members of the Pakistan team, Wasim Akram, Mushtaq Ahmed, Waqar Younis and Inzamamul Haq will continue to play as the Commission has recommended cash penalties against them and has not suspended them from cricket. The report recommends criminal proceedings against Salim Malik apart from cash penalty. Salim Malik was acquitted of all charges by Farrukhuddin G. Ibrahim in his inquiry in Oct 1995 following allegations from Shane Warne, Mark Waugh and Tim May for lack of evidence since the Australian cricketers refused to come to Pakistan and testify. However, an interim report by judge Ejaz Yousuf implicated Malik but being an exparte inquiry providing no chance to the accused the investigation was abandoned. The report states that there were sufficient grounds to cast strong doubt on Mushtaq Ahmed, but the Commission failed to make a finding of guilt to the requisite standard. It was stated that Mushtaq be kept under strict vigilance and a supplementary inquiry has been recommended against him besides Rs300,000 cash penalty. Former captain Wasim Akram has failed to co-operate with the Commission, and the suspicious circumstances under which Ataur Rehman changed his testimony gave Wasim benefit of doubt. However, removal from captaincy, strict vigilance and further probe into his assets acquired through cricketing tenure was recommended. Wasim has been fined Rs300,000. Waqar Younis, Inzamamul Haq and Saeed Anwar have been penalized and it was stated that these cricketers were withholding information. The report does not mention the names of Ejaz Ahmed or Saqlain Mushtaq. The chairman said that PCB was preparing its own recommendations, which are in the process of being finalised, However, one thing that has been agreed upon is zero-tolerance to any such behaviour and anyone found guilty would be dealt with severely. Before reading from a five-page summary, Gen Tauqir gave a background to the whole episode. He also mentioned the infamous bodyline series, sledging, ball tampering etc. as the other sour areas of international cricket. Gen Tauqir said that the Commission dealt with the issue involved at length and in this regard questioned a total of 54 witnesses including cricketers, officials, journalists, Australian cricketers etc. thoroughly before finalising is recommendations. In the report, the Commission's finding is that there was no planned betting and match-fixing by the team as such. Thus, on the whole, the team is cleared of blame and as a whole the players of the Pakistan cricket team declared innocent. However, doubts of varying intensity have been cast on the integrity of some members of the team in their individual capacity. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000524 ------------------------------------------------------------------- Barbados Test ends in a tame draw ------------------------------------------------------------------- Qamar Ahmed BRIDGETOWN (Barbados), May 23: If not for 'safety first' tactics a decision would have been possible on the final day of the second Test at the Kensington Oval but as it turned out to be, the match ended in a tame draw here on Monday with both Pakistan and West Indies sharing the honours. Pakistan, having resumed the fifth day's play at 345 for seven in their second innings, left it a bit too late to force a result as they allowed their innings to drag on till 20 minutes after lunch when they declared their second innings closed at 419 for nine. That left West Indies a formidable 275 to save the match in the remaining 57 overs. West Indies started their second innings shakily as they lost openers Adrian Griffith and Sherwin Campbell with only 15 runs on the board. And when Shivnarine Chanderpaul was also dismissed for 16, it seemed that Pakistan could still force a win but Wavell Hinds and captain Jimmy Adams pulled the West Indies innings together to share a partnership of 72 for the fourth wicket and take their side to safety. With seven overs still remaining in the last hour, play was finally called off by the two umpires with the consent of both skippers. In the fifth over of the innings, Griffith (5) was adjudged leg before by umpire Eddie Nicholls when a delivery from Waqar Younis struck the batsman quite high. Campbell (8) then fended a lifting delivery from Wasim Akram to substitute Shahid Afridi in the gulley. With Saqlain Mushtaq and Mushtaq Ahmed bowling in tandem from the ninth over things were difficult to manage for the batsmen on a pitch that had deep foot marks. Chanderpaul, not sure about Mushtaq's spin, dashed down the wicket to hit him but found the ball in the hands of Mohammad Wasim at silly mid-off. The third wicket falling at 41. However, from 58 for three at tea, the West Indies recovered to take the score to 113 before Pakistan picked up the wicket of Wavell Hinds, who played at a widish ball from Mushtaq and was caught at the wicket for 52. He hit eight fours. Hinds, the 23-year-old left-hander from Jamaica playing only in his fourth Test, was deservedly declared the Man-of-the-Match for his 165 in the first innings and another brilliant effort in the second knock. The Pakistani bowlers failed to dislodge either Adams or young Ramnaresh Sarwan. As it was, Adams remained unbeaten with 34 and debutant Sarwan followed his impressive 84 not out in the first innings with 11, including two wonderful drives to the long-off boundary off Mushtaq in the final over of the Test. Both teams now head off to Recreation Ground in St John's (Antigua) for the third and final Test, starting on Thursday, with everything to play for. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20000526 ------------------------------------------------------------------- Pakistan judge says probe not over ------------------------------------------------------------------- KARACHI, May 25: The judge who delivered a report on corruption in Pakistan cricket said on Thursday that all his recommendations were implemented but added that an investigation against wrist spinner Mushtaq Ahmed was continuing. "I can only say that all my recommendations have been implemented. I neither have to be happy nor satisfied because it was up to the concerned authorities how they handled the report," Justice Malik Mohammad Qayyum said on Thursday from Lahore. But Qayyum said an investigation against Mushtaq had not been completed because one witness had not been found. "We are trying to locate one Mr Butt... Butt, according to my information, is in Kuwait and until I examine him I can't decide whether the allegations against Mushtaq are true or false," the judge said. LIFE BAN NOT RECOMMENDED Qayyum's report said Mushtaq was accused of match-fixing against Australia in a Singer Cup match in Sri Lanka in 1994. But he said in an interview he did not recommend a life ban against the player because his performance in the match had been impressive. "He didn't concede many runs and also took wickets. The accusations didn't match the performance," he said. Australia won the one-dayer by 28 runs, with Mushtaq taking the wickets of Waugh twins. His 10 overs cost 34 runs. Mushtaq, currently touring the West Indies with the Pakistan national team, was fined 300,000 rupees ($5,800) by the Pakistan Cricket Board (PCB) on Qayyum's recommendation "for (having) brought the name of the Pakistani team into disrepute with...associating with gamblers". The judge said a life ban was recommended against discarded test pacer bowler Ata-ur-Rehman because he confessed. ALLEGATIONS WITHDRAWN "He admitted taking bribe but Wasim Akram was not banned because Ata withdrew his allegations against him. Besides, Wasim never admitted paying Ata the said amount." Rehman had said Akram paid him 100,000 rupees to bowl badly in a one-day international against New Zealand at Christchurch in 1993- 94, but later retracted the accusation. Qayyum also recommended a life ban against former top batsman Salim Malik but added he would not comment as Malik has said he will go to court to challenge the ban.-Reuters ------------------------------------------------------------------- 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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