------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 9 September 2000 Issue : 06/34 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Army took over plane through hooliganism, SHC told + COAS influenced pilot, SHC told + Runway was not blocked: Nawaz counsel + Helpful evidence destroyed: defence: SHC sees arguments at variance + CE offers no-war pact to India + Vajpayee accuses Pakistan of cross-border terrorism + Musharraf cancels meeting with Hasina + Passengers suffer as PIA flights run behind schedule + EC to be ultimate forum + HUBCO asks govt to drop criminal cases + Kulsoom warns against covert deal on CTBT, Kashmir + Saranjam gets policy making powers + Shujaat to challenge composition of CCC + Notices in first-ever sale of Ittefaq unit + All exit points to be linked up with computer network: Moin + Nine die as shelling on LoC intensifies + Census in Valley termed a conspiracy + Kashmir dispute: CE for E.Timor-like mediation + Persecution by states rampant: US report on religious freedom + References against Benazir: Ex-parte proceedings by LHC + Farooqui�s get bail + SHC declares appointment of 35 civil judges illegal + Govt exterminating poor, not poverty, says Altaf + Judgment in Sherpao case reserved + PTV loses Rs10m on CE�s speech + Seven die, 30 hurt in Lahore bomb blast + Two killed, 12 injured in Lahore bomb blast + India accuses Pakistan of harassing diplomats + India asked to shun hostile propaganda + Nazia laid to rest --------------------------------- BUSINESS & ECONOMY + Government borrowing touches Rs40bn + Presidential Ordinance issued Import duty rates revised + Govt prepares tax holiday package for IT sector + Rs50bn more to be collected thru new tax regime + US not to block IMF relief + IMF assesses steps to end tax evasion + IMF experts assess forex market + IMF team discusses oil price-hike + Beefing up forex reserves: Roosevelt Hotel may be sold soon + Package announced for EPZ investors + Stocks maintain uppish leaning --------------------------------------- EDITORIALS & FEATURES + Gen Agha Mohammad Yahya Khan � 2 By Ardeshir Cowasjee + Journalism in the Internet age By Ayaz Amir + Curbing the spooks By Irfan Husain ----------- SPORTS + New rules on ball tampering framed + Pakistan clinch hockey series + Pakistan whip Kiwis 5-1 in final hockey Test + Griffith contacts PCB: Pakistan set India Sept 29 deadline + Pakistan tour: India to decide at month's end + Reclaiming hockey gold a tall order for Pakistan + Winter Test series: Pakistan offer to send cricket team to India + Indian probe report on match-fixing this month

Army took over plane through hooliganism, SHC told
By Shamim-ur-Rahman

KARACHI, Sept 8: Nawaz Sharif's claim that he had ordered diversion
of PK-805 to avoid bloodshed and chaos was his imagination as nothing
of that sort happened on Oct 12. This was observed by the chief
justice of the Sindh High Court on Friday when counsel for the
deposed prime minister, Barrister Azizullah Shaikh, invoked civil
aviation laws to justify diversion of the flight to avert bloodshed
and chaos.

The counsel had referred to Section 6 of the Civil Aviation
Ordinance, 1960, before the full bench comprising Chief Justice
Saiyed Saeed Ashhad, Justice Sarmad Jalal Osmany and Justice Wahid
Bux Brohi.

He submitted that Section 6(b) of the ordinance empowered his client
to prohibit the flight of all or any aircraft, or class of aircraft,
over the whole or any part of Pakistan. "Section 6(b) empowered me to
avert bloodshed, save the army and to save the legal order from being
eroded," the barrister stated.

The chief justice observed that "on your failure there was no
bloodshed, when you failed to send the COAS outside no person raised
the voice against it. Where was the bloodshed? It was your
imagination." He also said that the power referred to could be
"exercised by issuing notification, and not by verbal orders."

The counsel said that there was no time for issuing a notification,
and if the appellant would not have taken the action there might have
been clash within the army, and a group of the police might have
attacked the army in Punjab and Sindh.

He said his client had the power to issue orders in times of war or
emergency in the interest of public safety and tranquility. As the
counsel was elaborating his point, the CJ observed "your objective
was to save your chair, (because) your right to remain prime minister
was being challenged."

The counsel reaffirmed that the objective was to avoid bloodshed and
chaos, and to maintain tranquility. On this, the CJ remarked: "You
did not succeed, and there was no bloodshed and chaos." Was it not
sufficient to anticipate bloodshed when the army had scaled the TV
station walls? quipped the counsel.

The bench, however, observed that according to the rule cited by the
counsel, the appellant was required to issue a notification for his

The counsel submitted that his client might not have followed the
formalities but it could not be denied that he had the authority in
law to do so. Referring to the CAA Ordinance, 1982; CA Ordinance,
1960; and CA Rules, 1994, he stated that his client had committed no
offence and thus could not be tired before a criminal court. "If I
(the PM) have abused or misused the power, then for that I am
answerable to the parliament," maintained Nawaz Sharif's counsel.

When Justice Osmany inquired whether there was any provision for
impeachment of the prime minister, the counsel replied that only the
president could be impeached. But in case of the prime minister the
only course available was a no-confidence vote or censure through

When Justice Osmany said that "a vote of confidence can be maneuvered
here or there," Barrister Shaikh came with a quick reply: "Which
institution is not maneuvered, what happened at Quetta in (Justice)
Sajjad Ali Shah's case?"

Referring to the authority his client was vested with, the counsel
said "power is given to me through parliament and I am not answerable
to a criminal court". He claimed that the CAA laws indemnified the
prime minister for his action taken in good faith.

Speaking on law points, Barrister Shaikh stated that issue and
maintenance of log book was a statutory duty under the above
mentioned ordinance. He refuted the allegation of conspiracy on the
premise that his client had given open orders to prosecution witness
Zahid Mehmood which were conveyed to the then chairman of PIA.

Only Aminullah Chaudhry, the approver, had stated that the orders
were passed on discreetly, he said. He then cited Qanun-i-Shahadat to
state that an approver's word alone in law would not be acceptable
unless corroborated by an independent witness.

Referring to an observation by the CJ on Thursday regarding timing of
various developments, the counsel said: "I cannot concede even one
minute to the prosecution because its a matter of life and death for
me, you may give them any latitude." He submitted that "even if so
much latitude is given to the prosecution, still the prosecution is
accountable for the last 30 minutes flying time".

Mr Shaikh stated that during the last half an hour, the control of
officials of the Air Traffic Control had eroded as "Brig Jabbar
attacked the ATC and through hooliganism and threats, unlawful
control of the plane was taken over". "Did they (army) have the
authority in law to attack the ATC?" Barrister Shaikh questioned. He
also submitted that the judge of the trial court had not scanned the
facts and his conclusions were "absolutely wrong and against the
evidence led by the prosecution".

The counsel claimed that the trial court had failed in appreciating
the evidence that from 7.15pm until its landing the aircraft was
controlled by the army.

He requested that the judgment of the trial court should be set aside
and prayed the appellate bench to acquit the accused. "When he (the
trial court judge) found no evidence against six others, he acquitted
them; on the same grounds my client is equally entitled for
acquittal," said the counsel.

He submitted that ingredients of offence under section 402(a) and (b)
(PPC) were not applicable. In the context of hijacking, he also
mentioned the Aviation Security Act, 1982, (Britain) (Sec 1) and
Anti-Hijacking Act, 1982, of India (Sec III-A).

He stated that according to these laws a hijacker(s) must be on board
whereas it was only Pakistan which recognized hijacking both in air
and on land. He said that insertion of Section 402 in the PPC had
disjointed legislation owing to a "mess created by the law ministry".

The Court proceedings were adjourned till Sept 12.

COAS influenced pilot, SHC told
By Shamim-ur-Rahman

KARACHI, Sept 7: Counsel for Nawaz Sharif submitted before the Sindh
High Court that the testimony of the pilot of PK-805 did not
establish hijacking, shortage of fuel or any other emergency, and
claimed that he had kept the plane in the air under the influence of
Gen Pervez Musharraf. Barrister Azizullah Shaikh stated before the
full bench that the pilot�s testimony demolished the prosecution�s

The bench comprised Chief Justice Saiyed Saeed Ashhad, Justice Sarmad
Jalal Osmany and Justice Wahid Bux Brohi.

He cited from the entry made by pilot Sarwat Hussain after landing
that "forty minutes delay occurred due to strict security check
because C-in-C Pakistan Army was traveling." The pilot had not cited
any other reason and had tried to conceal the facts Barrister
Azizullah Shaikh said.

He questioned the statement and pointed out that such an important
incident had taken place but the pilot had not mentioned it in his
report. He claimed that the delay in landing was because Gen
Musharraf wanted to be sure that his confidants were in control of
the situation on the ground.

Under the international aviation rules, Barrister Shaikh submitted,
pilots of all aircraft were bound to enter/record even small
incidents in the log book. The CJ observed that "you can say that he
did not give details but this does not wipe out the facts." The
barrister quipped "it is a conjecture. You can�t draw any inference
in his favor."

He submitted that the prosecution�s case was based on shortage of
fuel but the pilot in his testimony had said he had enough fuel to
land at Karachi. He stated that the pilot had defied the orders of
the air traffic control (ATC) at the behest of Gen Musharraf and had
landed only when he got clearance from the General. He cited the
pilot�s testimony in which he had deposed that without the
confirmation of the voice of Maj-Gen Iftikhar by Gen Musharraf, he
(the pilot) would not have landed at Karachi.

He argued that when the ATC had asked the pilot to land at 7.33pm,
why did not he (the pilot) comply with it and why did he gain height
and drifted towards Nawabshah. He described the defiance of the ATC
orders as hijacking.

While Barrister Shaikh was dwelling upon the events before and after
7.15pm, Justice Osmany asked: "Are you suggesting that whatever
happened up to 7.15pm was justified?" The counsel replied "it may not
be justified but whatever happened before 7.15pm is authorized in

"What were your intentions.. your intention was to remove certain
individual," observed the CJ.

The counsel for Nawaz Sharif said: "My intention was to take the
plane to Nawabshah and send it outside after refueling. Killing
intention was not there". During the process, remarked Justice
Osmany, "the risk was there." Barrister Shaikh quickly replied that
the trial court had rejected that charge. He also cited the pilot�s
testimony in which he had claimed that he was not directly informed
by the air traffic controller about the closure of the Karachi
airport whereas ATC Manzoor Ahmad had deposed that he had directed
the pilot to proceed to Nawabshah for landing. He also cited from the
pilot�s statement in which he had said that he (the pilot) had heard
the ATC informing other aircraft about the closure of the Karachi
airport and directing them to Sukkur and Nawabshah.

Barrister Shaikh questioned the pilot�s statement before the trial
court in which he had stated that he had lost total faith and trust
in the ATC due to "critical and grave fuel position resulting in his
command being crippled and his faith eroded on account of conflicting
orders issued by the ATC" at about 7.10pm. The pilot had said that
while descending in a turn, the ATC had asked him to return and land
at Karachi. "This was initiated but the ATC instructions were
conflicting in nature and created a state of confusion and had by
that time eroded the trust the pilot had in the ATC".

Barrister Shaikh maintained that this was done under the influence of
Gen Musharraf. The pilot had not agreed with the suggestion in the
trail court that Gen Musharraf had told him that there could be a
trap for him (for the general) and he should not land. The pilot had
said he personally suspected that the plane was being denied landing
due to the presence of the chief of the army staff in the aircraft.

Referring to the testimony about runway being blocked by vehicles and
lights being switched off, he termed it heresy and submitted that
there was no direct evidence to prove that runway lights were
switched off. "The pilot was not blind. He could have himself seen
the lights while hovering at the Marvi hold point," argued Mr Shaikh.

He also read out portions of Investigating Officer�s statement to
prove that investigation was not done by him and that he had only
compiled them.

When Barrister Shaikh emphasized the importance of timing mentioned
by various witnesses, the CJ observed that the counsel was putting
too much emphasis on it. "You are heavily relying on the timing,
forgetting that the difference of timing ranging between 10-15
minutes is understandable. It is always approximate time." Barrister
Shaikh submitted that "so far as the present appeal and trial is
concerned timings are most vital. Time is not only the essence in
this case but also the question of life and death of the case depends
on timing, contended, the counsel.

Runway was not blocked: Nawaz counsel
By Shamim-ur-Rahman

KARACHI, Sept 6: Counsel for Nawaz Sharif submitted before the Sindh
High Court that when flight PK-805 was not being allowed to land at
Karachi or Nawabshah, Gen Pervez Musharraf had explored the option of
taking it to Bandar Abbas in Iran.

Barrister Azizullah Shaikh also termed fictitious the prosecution's
claim that runway of the Quaid-i-Azam International airport was
blocked and fire-tenders were used to prevent the plane from landing.

He submitted that according to the deposition of Brig Nadeem Taj,
private secretary to the COAS, while discussing alternative airfields
for landing, Gen Musharraf and the pilot had considered the airfields
at PAF Faisal, Masroor Base, Bandar Abbas, Mahar (Iran) and Ahmedabad
(India). He pointed out that according to Brig Taj only the Ahmedabad
airfield was discarded by the COAS because it was felt that the
moment the plane would have entered the Indian airspace, it might
have been considered intrusion and the Indians might have shot it

The barrister contended that in the case of emergency any aircraft
could land anywhere after giving notice to the concerned airfield.

The prosecution and the CJ referred to the recent downing of PN's
Atlantique by India, to which Barrister Shaikh replied that he was
talking with reference to commercial/passenger flights. He submitted
that the pilot had discarded all options except to either land at
Karachi or Nawabshah. The pilot was in constant touch with the air
traffic control (ATC), he added. He admitted Nawaz Sharif had ordered
diversion of the flight to Muscat and it was Gen Musharraf who was
planning to go to Iran in case his coup failed. Yet, he stated, his
client was accused of attempting to send the plane outside Pakistan.

Referring to Brig Taj's testimony, Barrister Shaikh said: "When there
was no chaos, confusion, panic or terrorism amongst the passengers,
then no case of terrorism could be made against my client". He cited
the judgment of a division bench of the SHC which had held that if
privacy was maintained in the commission of an act, it could not be
dubbed an act of terrorism. "An essential ingredient of terrorism is
that it is made public", he argued. It was a relative term, observed
Justice Osmany.

Barrister Shaikh submitted that according to the deposition of Brig
Taj at about 7pm when the plane had reached near Karachi, he (Brig
Taj) was called by the pilot who told him that he was being denied
landing and asked to go anywhere at his own risk. At that time fuel
was left for one hour and 10 minutes, the barrister said, adding that
the pilot had asked Brig Taj to inform the COAS about it and request
him to come to the cockpit.

Brig Taj had contacted the ADC to get the mobile to find out why the
plane was being denied landing, but the mobile was not functioning,
because at 7pm all mobiles in the country were switched off, said the

Barrister Shaikh submitted it was evident from this deposition that
Gen Musharraf and others were not afraid of or terrorized whereas
"fear was an essential ingredient of terrorism". He contended that
Gen Musharraf had directed the pilot to contact the ATC because his
mobiles were not working and he wanted to contact his officers on the
ground to be sure that "they were in control of the situation".

Brig Taj had denied the knowledge if the pilot had diverted towards
Nawabshah at 7:13pm in violation of the ATC instructions, and said it
was around 7:25pm when the pilot had put the aircraft in circle in a
bid to keep both the options open to land either at Karachi airport
or fly towards Nawabshah.

The barrister then dealt with the deposition of the pilot who had
said that at about 6pm he had come in touch with the ATC and received
routine clearance/permission for landing. But during descend he heard
the ATC telling other planes about the closing of the airport.

When Barrister Shaikh referred to the full bench's earlier remarks
that the army takeover decision was supported by 18 corps commanders,
and submitted that the entire army action was based on personal
enmity, the bench asked the Advocate-General to explain the position.

AG Raja Qureshi invited the attention of the bench to sub para-5 of
para 109 in the case of Syed Zafar Ali Shah Vs Gen Pervez Musharraf
and disputed the contention of Barrister Shaikh by quoting from the
judgment which said that the "proclamation dated 14th October 1999
was issued in pursuant to deliberations and discussions of the
Services Chiefs of the Army, the Air Force and the Navy. All legal
instruments, laws and orders issued there under such as the PCO are
valid, proper and bona fides."

Earlier, Barrister Shaikh repeated important portions of depositions
by PWs Syed Aqeel Ahmad, general manager of air traffic control; Air
Traffic Controller Nadeem Akbar, Shahnawaz Dara, etc. He read out the
statement of Nadeem Akbar and submitted that according to him at
7:10pm the flight had been cleared for landing at Nawabshah. He also
referred to the testimony of Aerodrome Controller Mohammed Asif, who,
according to him, had introduced two new individuals: Raja Lateef and
Nadeem Iqbal. He said both these individuals were not examined by the
prosecution and so was Anwarul Haq, acting facilitation officer.

The CJ told Barrister Shaikh that he was taking two contradictory
stands: only a few minutes earlier, he had contended that the
aircraft remained in dual control of the pilot and the ATC but
afterwards he was saying that the ATC had no authority to issue
orders to an aircraft.

Barrister Shaikh replied he was not making contradictory arguments
and not challenging the authority of the ATC but what he was
objecting to was the content of the order. At this stage the issue of
recording of spools pertaining to the communication between the crew
and the ground control cropped up. Barrister Shaikh said that
fabricated documents had been placed on record, and in this context
he referred to exhibit 74 and 75 pertaining to transcript of spools
of recording. These were neither produced through any prosecution
witness nor was any witness asked to identify his voice recorded in
these spools, he submitted. He contended that these documents should
not be used against his client.

Special Public Prosecutor Barrister Zahoorul Haq and Assistant
Prosecutor Raja Qureshi, assisting the court, said that those
documents were not produced through a PW because the defence had
objected to it. Responding to this, Barrister Shaikh said that it was
the prosecution which had not produced any of those witnesses to
identify the respective voices.

Barrister Zahoor said the documents were placed on record and relied
upon by the trial court as the defence used/relied on the same during
cross-examination of the prosecution witnesses.

The counsel for Nawaz Sharif said that the accused had all the right
to use any document which was favorable to him. There were three
judgments on this issue, he pointed out. He started reading evidence
of the pilot but then requested for adjournment.

Helpful evidence destroyed: defence: SHC sees arguments at variance
By Shamim-ur-Rahman

KARACHI, Sept 5: The Sindh High Court Chief Justice observed that
Nawaz Sharif's counsel's premise that the army takeover on Oct 12 was
part of a planned coup, was contradicted by his own argument with
regard to a conversation between Gen Pervez Musharraf and Maj-Gen

The observation was made when the SHC full bench, comprising Chief
Justice Saiyed Saeed Ashhad, Justice Sarmad Jalal Osmany and Justice
Wahid Bux Brohi, resumed the hearing of arguments in the appeal filed
by the former prime minister against his conviction by the trial
court in the plane case.

Barrister Azizullah Shaikh, counsel for Nawaz Sharif, made
submissions on the power struggle and claimed that the army takeover
of Air Traffic Control (ATC) at the Karachi airport was unlawful and,
therefore, those responsible for holding the plane in the air after
Nawaz Sharif had given it clearance to land, should be punished. In
support of his contention that the army was in unlawful control of
the ATC and the plane during the last half an hour, Barrister Shaikh
read out from the testimony of prosecution witness Syed Aqeel Ahmad
and others.

He requested the court to have a special interpretation of the word
"unlawful" as described under section 402 (B). He contended that in
the trial court both sides had ignored this important law point.
Referring to the pilot's conversation with his company on the
"company channel", the appellant's counsel asked why the PIA recorder
was not produced to verify the conversation between the pilot and
then PIA chairman Shahid Khaqan Abbasi.

Referring to Aqeel Ahmad's evidence, he said this "illegal evidence
was introduced to prejudice the minds, and the trial court judge fell
into the trap". "Anything helping my client was either erased or
pushed in at the last minute without any proof so that it goes
unchallenged from the defence side," said Barrister Shaikh while
referring to statements of prosecution witnesses.

He also referred to the PW's statement in which the latter had
claimed that Brig Jabbar had entered the ATC when it was not his
concern and ordered that the plane should land at Karachi at any

Building up his argument on the premise that the pilot had not obeyed
the orders of the ATC because he was allegedly under the influence of
the COAS, the counsel submitted that the witness had stated that Maj-
Gen Iftikhar had threatened to blow up all those present in the ATC,
which, he claimed, was an offence under section 402 of CrPC.

The justification for not including the army under this section
should also be valid for his client. "If recording of the
conversation between Gen Musharraf and Gen Iftikhar had not been
erased we would have come to know about the nature of the dialogue,"
he said.

He submitted that the pilot had not declared emergency which he could
have done by applying code 7400 (hijacking code) and claimed that
Nawaz Sharif had not endangered the lives of the passengers, but the
army officers who were in control of the situation during the last
half an hour.

"If the pilot would have switched on the (code) button the Karachi
airport was bound to allow it to land," submitted Barrister Shaikh.
Discussing the evidence of Air Traffic Controller Nadeem Akhtar, the
counsel claimed that no witness was prepared to say that his client
had ordered the lights to be switched off or the runway blocked.

He contended that neither the fire-tenders were placed on the runway
to block the landing nor were the lights of the runway switched off.
He submitted that it was attributed to Anwarul Haq, who was not
produced as witness, and emphasized that Anwarul Haq should have been
produced along with the logbook.

When the CJ inquired that was it not true that under his (Anwarul
Haq's) orders the lights were switched off, Mr Shaikh replied in
negative, and asked where was the evidence.

He submitted that Brig Jabbar had no right to enter the ATC. He also
referred to the conversation between Gen Musharraf and Maj-Gen
Iftikhar during which the latter had reportedly informed the army
chief about his removal and appointment of Gen Ziauddin as the new

The CJ observed that the defence counsel's argument regarding Maj-Gen
Iftikhar's dialogue had contradicted his own claim that Gen Musharraf
was in contact with the army officers from Sri Lanka and had planned
the coup before that.

Barrister Shaikh submitted that "there was a hide-and-seek going on
and when the plane was in the air, the prime minister became active
and the order to remove Gen Musharraf was typed". Nawaz Sharif was
kept fully informed by Gen Ziauddin about the coup plan of Gen
Musharraf, he submitted.

Justice Osmany remarked "it was not a planned coup but could have
been triggered by the removal of Gen Musharraf and some others."

Mr Shaikh contended that they were planning a coup and Nawaz Sharif
went into action against them. The CJ remarked "perhaps it was not
considered beneficial for the army".

The counsel submitted that "if you are giving this freedom to them,
then what will be the future we don't know." "This has been happening
since 1958; Ayub Khan was called the saviour of the nation," the CJ

The counsel responded by reminding the court that Z.A. Bhutto was
eliminated through legal process, and said that the same people who
had garlanded Gen Ayub, insulted him, and the same thing happened to
Gen Yahya Khan and Gen Ziaul Haq.

The counsel referred to the testimony of Shahnawaz Dara, acting
director of PIA's flight operations, who had said that before 7pm,
clearance had been given to the plane to land for refueling. By seven
in the evening, the army had taken over the ATC and they were talking
to the officers on board the plane. He also referred to the testimony
of Fire Officer Asadullah Shaikh in support of his contention that no
record of the deployment of fire engines was maintained or produced.

The CJ inquired from the Advocate-General who assured the Bench that
he would respond to that.

CE offers no-war pact to India
By Shaheen Sehbai

NEW YORK, Sept 6: Pakistan firmly proposed a no-war pact and a mutual
reduction in forces with India as General Pervez Musharraf told the
UN Millennium Summit that Pakistan was prepared to take "bold
initiatives to change the status quo".

In his maiden speech to 152 heads of state and government, the chief
executive said he was prepared for a dialogue with India "at any
level, at any time and anywhere. Let me commit at this world forum
that we desire a no-war pact; we are ready for a mutual reduction of
forces and we also seek a South Asia free from all nuclear weapons,"
Gen Musharraf said.

His five-minute speech covered the Kashmir dispute in detail but he
also assured the international community that his regime was
"sincerely committed to rebuilding and strengthening the institutions
of state to give the country a genuine and durable democracy."

"Pakistan remains conscious of international concern for democracy,"
he said. "Our founding father Quaid-i-Azam envisioned Pakistan as a
modern Islamic state, committed to democracy based on equality,
freedom and social justice. The people of Pakistan have never lost
faith in democracy, but autocracy in the garb of democracy led to
dishonest governance and the collapse of institutions."

Vajpayee accuses Pakistan of cross-border terrorism
By Shaheen Sehbai

NEW YORK, Sept 8: Indian Prime Minister Atal Behari Vajpayee launched
vitriolic attacks on Pakistan, accusing Islamabad of "terrible crimes
against humanity" by adopting cross border terrorism as an instrument
of state policy.

The Indian prime minister asked the international community to reject
attempts by Pakistan to sponsor cross border terrorism in the name of
Jihad. "The protagonists of mediaeval religious extremism in Pakistan
had provided a convenient cloak to disguise the aggression on Indian
civil society - the cloak of Jihad." He rejected offers of new
initiatives for dialogue, stating that "terrorism and dialogue do not
go together."

Addressing the UN Summit, Mr Vajpayee said it was strange that the
authors of a vicious terrorist campaign, that had claimed more than
30,000 innocent lives in Indian-held Kashmir, were offering a
dialogue after sabotaging a historic peace initiative (at Lahore).

He said those who had stifled democracy at home, now speak of
freedom. Those who have engaged in the clandestine acquisition of
nuclear weapons and delivery systems talk of ridding South Asia of
these. Those who had repudiated peace covenants talk of new
agreements to prevent war, he added.

Musharraf cancels meeting with Hasina
Special Correspondent

NEW YORK, Sept 8: Pakistan-Bangladesh relations suffered a major
setback when General Pervez Musharraf cancelled a scheduled meeting
with BD PM Hasina Wajid.

At a press conference, the chief executive confirmed that his meeting
with Ms Wajid had been "postponed", and the decision had been made
after she had obliquely attacked Pakistan in her United Nations
address and demanded suspension of Pakistan from the United Nations
following the Commonwealth example.

When Gen Musharraf was asked what had happened, he said the meeting
had been postponed and referred to Hasina Wajid's remarks about the
bitter past of Pakistan. "We should forget the past.  We should move
on and look to the future," the chief executive said, adding that the
Pakistanis still loved the Bangladeshi people.

Passengers suffer as PIA flights run behind schedule
By Habib Khan Ghori

KARACHI, Sept 8: The PIA flight schedule remained disturbed for the
second day causing a lot of inconvenience to its hundreds of
passengers and their relatives when reaching on the airport they were
informed about the delay or cancellation of the flights. The
officials at the airport added to the plight of the passengers by
providing inadequate information to the passengers.

Meanwhile talks between the representatives of Pakistan Airline
Pilots' Association (Palpa) and the PIA management did not prove
fruitful over the new working agreement as the PIA Managing Director
Sher Afgan Malik expressed his inability to concede to their demands,
which, according to him, were beyond his powers.

The PIA sources said 13 flights were delayed and seven flights had to
be cancelled during the last 48 hours when the Palpa resorted to the
rule "by the book". But, a Palpa spokesman told Dawn that during the
last 72 hours eight flights were cancelled, eight flights were
combined and 15 flights had been delayed.

Denying the impression of "go slow" the Palpa in a press release has
clarified its position saying that the last PIA-Palpa agreement,
pertaining to the working conditions with emphasis on air safety, was
signed in 1995 which expired in 1998. Since then more than two years
have passed, but, despite various reminders and meetings, the
management had made no initiative to renew any form of negotiations.

EC to be ultimate forum

ISLAMABAD, Sept 6: The Election Commission of Pakistan will be the
ultimate forum for implementing the Political Parties Act and
debarring convicted political leaders from taking part in electoral

The superior judiciary could also take cognizance of violation of the
recently amended Political Parties Act, official sources told APP
here on Saturday. If necessary, the election commission could also
make appropriate rules for the implementation of the law.

The commission, which registers political parties and allots symbols
to them for their participation in election, could check whether the
parties followed the rule of law, the sources said. However, the
sources said the government had no intention of preventing any
political party from participation in politics. "The criticism of the
amended Political Parties Act,1962, is uncalled-for as legitimate
political parties are already functioning without any restriction,"
they added.

The government, in an amendment to the law dealing with political
parties, had debarred two former prime ministers, Nawaz Sharif and
Benazir Bhutto, from politics as both of them had been convicted by
the court, the sources said.

They said that unless given relief by the superior court, they stood
ousted from politics. The ordinance had been introduced just to purge
the corrupt and dishonest elements from political parties.

The sources said: "It is in the national interest that criminals
should not take part in the political process". The law would ensure
clean and better politics but the main responsibility rested with the
people for the achievement of this objective, the sources added.-APP

HUBCO asks govt to drop criminal cases
Bureau Report

ISLAMABAD, Sept 8: The Hub power company has called upon the
government to withdraw criminal cases against it in order to have
some rapprochement between the two sides.

Sources in HUBCO when contacted said that so far no case against any
of its official has been withdrawn. "If at all they have withdrawn
any case, we have not been notified about it", a source said. Sources
said cases against former chief executive Mike Woodruff and the
present chief executive Syed Khurshid Hussain have not been removed
and that they were still on bail.

However, the situation, they said, was likely to improve after a
scheduled meeting between chief executive Gen Pervez Musharraf and
Syed Khurshid Hussain in New York on Sept 10.

Kulsoom warns against covert deal on CTBT, Kashmir

ISLAMABAD, Sept 3: Begum Kulsoom Nawaz, has warned against covert
deal on the Comprehensive Test Ban Treaty (CTBT) and a conspiracy to
surrender Kashmir. She alleged that the Chief Executive wanted to
strike a secret deal on the CTBT during his forthcoming visit to the
United States to perpetuate his unconstitutional rule over the

She, however, said that Gen Musharraf must think over it for hundred
times before committing such a mistake as neither the people of
Pakistan nor the armed forces would support any such move. -PPI

Saranjam gets policy making powers
By Nasir Malick

ISLAMABAD, Sept 7: The Pakistan Muslim League has given all policy-
making powers to PML Secretary General Saranjam Khan and banned
individuals and groups from discussing those matters in their
meetings which pertain to party policies. The decision was taken at a
meeting held at the PML central secretariat.

The meeting, which was presided over by the secretary general, was
attended by all the four provincial presidents and secretary generals
of the party or their representatives, as well as the president and
the secretary general of the Federal Capital Territory.

"We will take disciplinary action against all those � be individuals
or groups � who violate the party decision," Islamabad PML President
Syed Zafar Ali Shah told reporters at a press conference. PML
Secretary General Saranjam Khan was also present at the press

It was also decided that no individual or party member, be elected or
otherwise, would issue any statement against any member or the
leadership. The meeting, which was apparently aimed at controlling
the damage caused by the successful meeting of the former PML
lawmakers from Punjab, also decided to hold a party convention in
Lahore in November.

Shujaat to challenge composition of CCC
Staff Reporter

LAHORE, Sept 6: Former interior minister Chaudhry Shujaat Husain says
the 'original' PML central coordination committee should meet as
early as possible to resolve the crisis in the party.

Talking to reporters at his residence while a meeting of the
provincial parliamentary party was going on, he said he would urge
the central secretary-general to convene the meeting immediately
after the return of Raja Zafarul Haq. Raja, the CCC convener, is now
in Egypt and is due home on Sept 9.

Shujaat alleged that the composition of the CCC had been unilaterally
changed by some leaders which was not acceptable to others. He
pointed out that the original CCC comprised some 20 members, while
another 60 members had been nominated to it without any
justification. "We'll challenge the composition of the CCC." He
pointed out that all nominations were subject to approval by the
central working committee.

Answering a question, Shujaat Husain said the status of the
parliamentary party would not change with the provincial organization
disowning it. "Such people should change their thinking." He insisted
that Nawaz Sharif had ceased to be the party's central president. He
could not function so unless the Supreme Court stayed the operation
of an ordinance which disqualified him after being convicted by a
court. He said Zulfikar Khosa was an ad hoc provincial president.

Notices in first-ever sale of Ittefaq unit
By Shujaat Ali Khan

LAHORE, Sept 5: The Lahore High Court issued notices for Oct 2 in the
first-ever sale of an Ittefaq Group unit in execution of a decree
passed against it at the instance of a creditor bank.

The Ittefaq Textile Mills (unit No 3), situated at Chunian, Kasur
district, owed the Muslim Commercial Bank about Rs253 million. When
the private limited company with Mian Yusuf Aziz, cousin and brother-
in-law of ousted premier Nawaz Sharif, as its major shareholder
defaulted on repayment, the bank sued it for recovery of its dues in
the Lahore High Court.

The company failed to contest the suit and Justice Malik Muhammad
Qayyum, LHC Company judge, decreed the amount in February. The
management, in the meanwhile, had leased out the concern to the
Sheikh Salim Javed and Associates (Pvt) Limited.

When the debtor company failed to satisfy the decree, the creditor
bank filed for its execution through attachment and sale of the
mortgaged property. The court ordered attachment and issued a notice
to the company and its management, which did not respond but allowed
the judicial process to take its course.

The leaseholder-in-possession and the creditor bank, meanwhile,
reached an agreement whereby the former agreed to purchase the
concern against the payment of the decretal amount. M/s Salim Javed
paid several monthly installments of Rs3.5 million each toward the
price -- the decretal amount of Rs253 million -- and approached the
LHC banking judge to approve the sale. Justice Qayyum issued notices
to the Ittefaq unit and the MCB for Oct 2.

According to the applicant's counsel, Advocate Ahmad Awais, the sale
of the concern by public auction might not have fetched the entire
decretal amount and it is in the interest of all concerned that the
sale be sanctioned and allowed to proceed.

All exit points to be linked up with computer network: Moin

KARACHI, Sept 2: Interior Minister Lt-Gen Moinuddin Haider has said
all the 15 exit points of the country will be linked up with a
computer network within the next 18 months in line with issuance of
computerized identity cards and passports.

He said the data entry of census forms was in progress after which
the national identity cards would be computerized. New passports
would also be computerized and would be issued from next year, which
would help check fake identity cards and passports, he added.

He directed the staff concerned to note the demand of traders to
issue passport of 100 pages instead of 50, allowing validity for 10
years instead of the present five years. He said the National Data
Registration Authority had been assigned the task of preparing
computerized identity cards and death certificates, and it would be
given the job of computerized passports as well.

Talking about illegal immigrants in Karachi, he said legal
formalities were almost complete to set up an Aliens Registration
Authority and its head office would be set up in Karachi. Aliens
would be issued work permits and would have to pay taxes, he added.
He said they might be deported in due course.

Nine die as shelling on LoC intensifies

JAMMU, Sept 6: Shelling intensified across the Line of Control as
nine people were killed in different areas of Kashmir. The attacks
came on the eve of premier Atal Behari Vajpayee's official visit to
the United States.

"Pakistan has resorted to heavy mortar shelling in which one civilian
has been injured. At least 20 houses have been damaged," said Indian
army spokesman Maj J.S. Rana in the southern Kashmiri region of
Jammu. "They fired 170 mortar shells at Jammu's border district of
Aknoor. Another 25 landed in Poonch. We have retaliated with machine
gun firing and mortar shelling," Rana said. "Six Pakistani bunkers
have been damaged," he added.-Reuters/AFP

Census in Valley termed a conspiracy

SRINAGAR, Sept 6: A former Indian minister warned of a sectarian
"conspiracy" behind the first official census to be conducted in
occupied Kashmir in 20 years.

Saifudin Soz, India's former environment minister, alleged that the
census was aimed at falsely lowering the number of Muslims in held
Kashmir, so as to undermine the freedom movement. "It's a conspiracy
against Muslims and will add another dimension to the strife in the
state," Soz said.

The Hizbul Mujahideen has already called for a boycott of the second
phase of the census, scheduled to begin on Sept 11. "Kashmir has
always been a Muslim-majority state, but now I suspect that a lot of
maneuvering will take place (during the census)," Soz told reporters.
"Something will happen behind the scenes."

Soz urged all political parties in held Kashmir to unite against the
census operation. "There is a need to take collective stance," he

Kashmir dispute: CE for E.Timor-like mediation
Staff Correspondent

NEW YORK, Sept 6: Chief Executive Gen Pervez Musharraf said on
Wednesday that he saw no hope of solving the Kashmir issue through
talks with India and that he would appeal to the world leaders for
the kind of international mediation that ended the Indonesian
occupation of East Timor.

In an interview with the New York Times, Gen Musharraf asserted,
"India had squandered several recent opportunities to start serious
talks with the Kashmiris and Pakistan. "Unless there is mediation,
strong mediation, justice cannot come about," Gen Musharraf remarked.
"Mediation is definitely required, and East Timor provides an
excellent example of how the situation can be solved if the world
community shows the will."

Persecution by states rampant: US report on religious freedom
By Tahir Mirza

NEW YORK, Sept 5: The US government has taken note of "significant
evidence" emerging in August last year about the Indian government's
role in the 1998 killing of Muslims at the Salaan village of the
Poonch district in occupied Kashmir.

An investigation, says the US administration, has showed that the
federal government as well as the authorities in occupied Kashmir had
created an overall infrastructure that specifically included
individuals with "the demonstrated capacity and attitude to commit
such acts of violence".

The observation is contained in the annual report on "international
religious freedom" unveiled by Secretary of State Madeleine Albright
on the sidelines of the UN Millennium Summit. The report has surveyed
the state of religious tolerance in 194 countries.

On Pakistan, the report notes that there was "slight improvement" in
the government's treatment of religious minorities between July 1,
1999 and June 30, 2000. It cites Gen Pervez Musharraf's abandoning of
his predecessor's proposal to enforce a Shariat Bill. But it asserts
that in many respects, the military government "has failed to protect
the rights of minorities, and the discriminatory legislation adds to
an atmosphere of religious intolerance in the country". This, in
turn, contributes to acts of violence directed against minorities as
well as the Muslim groups.

With regard to India, the report comes to the conclusion that attacks
on religious minorities were less intense during the reporting period
but more widespread. These included attacks on Christian clerics and
pilgrims, and bomb and arson attacks on churches.

"Hindu, Muslim and Sikh villagers were killed in conjunction with the
ongoing conflict in Kashmir. The (Indian) central government
condemned the attacks and called for tolerance, but the response of
local law enforcement officials was often inadequate."

The report takes into account reports of links between Hindu
extremist groups and the BJP in states where the party is in power.
It says the governments at local and state levels only partially
respect the religious freedom.

The Pakistan government did not encourage violence, the report
states, but there were instances in which the government failed to
intervene in cases of sectarian violence.

References against Benazir: Ex-parte proceedings by LHC
By Shujaat Ali Khan

LAHORE, Sept 8: The Lahore High Court decided to proceed ex-parte
with the NAB application for transfer of all pending references
against PPP chairperson Ms Benazir Bhutto to the Attock
accountability court following her failure to respond to a notice
published in several newspapers.

The proceedings will commence on Sept 15, Chief Justice Falak Sher
observed, adjourning all applications by the National Accountability
Bureau for transfer of cases to Attock and by accused from there to
Lahore or Karachi.

Farooqui�s get bail
Staff Reporter

KARACHI, Sept 6: A division bench of the Sindh High Court granted
bail to Usman Farooqui, former Chief of Pakistan Steel Mills, his
wife Anisa Farooqui and daughter Shermila Farooqui, in sum of one
million rupees each in a corruption case. However, their request for
transfer of the case was not acceded.

SHC declares appointment of 35 civil judges illegal

KARACHI, Sept 7: A division bench of the Sindh High Court declared
the appointment of 35 civil judges as illegal. The bench, comprising
Justice Sabihuddin Ahmed and Justice S. A. Rabbani in two separate
orders said since the appointment of the judges (Respondent No. 6 to
40) was not in accordance with the rules, and the selection was made
by a committee having no legal authority, ignoring the result of the
tests conducted by them. The court said this on a constitutional
petition filed by Ejaz Mustafa.

"We are constrained to hold that the notification appointing
respondents sans any legal effect. However, these respondents,
working as civil judges, shall be treated as appointed on ad hoc and
they may continue in that capacity till a fresh selection is made in
accordance with the rules, for which these respondents as well as
those who were called for the third test, shall be allowed to
participate in the competition subject to their eligibility that will
be properly scrutinized by the provincial selection board.

According to the petitioner�s counsel, Mohammad Nawaz Shaikh, the
petitioner appeared in all tests, including the third and final, but
these were not considered for selection. The Additional Advocate
General Ainuddin could not give an explanation as to why this test
was ignored after it was conducted.�PPI

Govt exterminating poor, not poverty, says Altaf
Staff Reporter

KARACHI, Sept 6: Muttahida Qaumi Movement (MQM) chief Altaf Hussain
has criticized the government for mounting prices of essential
commodities and observed that the military government, instead of
eliminating poverty, is exterminating the poor.

In a statement faxed from London, Mr Hussain said that the rise in
power rates for Karachi only and not for other parts of the country,
particularly Punjab, tantamount to not only discrimination but also a
clear proof of what he called the anti-Sindh and anti-Mohajir
policies of the present government.

Recalling that on the one hand the present military government had
authorized the Karachi Electric Supply Corporation (KESC) to raise
the prices by 8 percent, on the other WAPDA had been instructed not
to raise power tariff in Punjab. Because of this decision, the
present military government had not only put extra burden of
inflation upon the Karachiites it would also destroy industries in

Demanding an explanation from the government for the logic of raising
the power tariff only for Karachi and not in Punjab, he has further
asked: Is Karachi an occupied territory and the Karachiites made
target of revenge? He said if the country is one then why this double

Mr Hussain said that witnessing the manner in which the poor people
of the country were being crushed under the heavy burden of
inflation, it clearly showed that the military government had decided
to exterminate the poor instead of eliminating poverty.

Judgment in Sherpao case reserved
Bureau Report

PESHAWAR, Sept 7: Said Maroof Khan, judge of Accountability Court No.
1, Peshawar, reserved the judgment about the release of fine money on
the applications of National Accountability Bureau and Aftab Sherpao.

Mr Aftab Sherpao, former chief minister of NWFP and Zahir Shah,
former director general of the Peshawar Development Authority (PDA),
had moved the court for the release of Rs 1 million each which they
had deposited as fine money after their conviction by the
Accountability Court No. 1 in a NAB reference. They moved the
applications for the refund of the amount after a division bench of
the Peshawar High Court exonerated the two from the charges and set
aside the verdict of the accountability court.

In the meantime, the NAB also filed an application against the
release of fine money to the two, taking the plea that Mr Sherpao had
been declared proclaimed offender in another NAB reference and as a
result of that his assets already stood frozen. After completion of
defence and prosecution lawyers arguments, the court reserved the

PTV loses Rs10m on CE�s speech
Staff Correspondent

NEW YORK, Sept 7: PTV lost almost Rs 10 million when lack of
understanding, poor planning and mismanagement by the media managers
resulted in wastage of 120 minutes of satellite time booked by PTV
for Chief Executive General Musharraf�s address to the Millennium

Information Ministry sources said PTV had booked a two hour slot for
Gen Musharraf�s five-minute address to the UN General Assembly at a
cost of Rs 70,000 per minute. That address was scheduled to be
delivered at 2am Pakistan time when 90 per cent of the Pakistani TV
viewers would have gone to bed. But since speakers at the UN General
Assembly never stick to the allotted time, Gen Musharraf�s speech was
delayed. Instead of 5pm New York time or 2am (Sept 7) Pakistan time,
it started at 6.23pm New York time, or one hour and 23 minutes late.
But by that time the reserved two hours of satellite time had expired
and PTV could not beam it direct to Pakistan. Thus the 120 minutes of
satellite time at Rs 70,000 per minute was a total wastage, costing
PTV Rs 8.4 million in foreign exchange. Then the speech had to be
sent after it was delivered and that again took about 10 minutes of
satellite time at the same, or probably more, cost.

Seven die, 30 hurt in Lahore bomb blast
By Asif Shahzad

LAHORE, Sept 7: Seven people, including a woman and a teenaged girl,
were killed and over 30 others were injured when a high-intensity
bomb exploded in a crowded market in Lahore. Two people died on the
spot, two in Services Hospital, one in Mayo Hospital, one in General
Hospital and another in Shalimar Hospital. The injured were admitted
to various hospitals and some private clinics. A half dozen others
were discharged from the hospitals after providing them first aid.
Doctors in the hospitals told Dawn that at least five of the injured
were stated to be critical.

The time device, which was planted on a scooter, exploded at 5:30pm
soon after a large number of people returned to their shops after
offering Asr prayers, witnesses told Dawn. They said the scooter was
parked at the corner of a vegetable shop in the main Dharampura
market. The scooter exploded with a big bang, damaging over 15 shops
within a radius of 100 metres. Some of them caught fire. The
explosion ripped through the corrugated iron-roofed market, breaking
a large number of window panes in a radius of 200 metes and leaving
cracks in the walls.

This was the second explosion that took place within four days in the
city. Another bomb exploded on Sunday in a bus stand resulting in the
death of three people and injuries to a dozen.

The in charge, Bomb Disposal Squad, told the reporters that it was
about 1kg locally-made time device which caused more damage due to
the presence of a large number of people in the market. Samples of
the device had been sent for a laboratory test, he added.

Two killed, 12 injured in Lahore bomb blast
Staff Reporter

LAHORE, Sept 3: Two people were killed and 12 sustained injuries in a
high-intensity bomb blast in Lorry Adda. The condition of four of the
injured was stated to be critical. This was the third explosion in
the general bus stand area during the last three months. In the
earlier blasts two people were killed and six were injured.

Planted beneath a cemented bench in a ladies waiting room, situated
in front of the Faisalabad stand, the bomb went off at around 3:15
pm, witnesses told Dawn. Splinters hit people in a radius of around
50 meters. Over a dozen people sustained serious injuries. Law
enforcing agencies, city administration, fire brigade, civil defence,
bomb disposal squad and other civic agencies rushed to the spot in
response to calls on their emergency numbers.

A bomb disposal squad spokesman told reporters that the bomb was one
and a half kg high-intensity time device. It caused considerable
damage to the waiting room roof and its pillars. Five buses - two
bound for Faisalabad and three for Chakwal- parked close to the
waiting room were completely damaged.

Civil defence officials measured one-foot crater left by the
explosion and a three to four inches deep hole in a radius of two
feet in a wall adjacent to the crime scene.

Talking to newsmen, the Lahore commissioner admitted that the police
had so far failed in making any progress in tracing culprits behind
the earlier blasts at the GBS. He said the civil defence had swept
the GBS through metal detectors hardly an hour before the explosion.
"They did report the sweeping to the Lahore SSP by wireless," he

India accuses Pakistan of harassing diplomats

NEW DELHI, Aug 5: India accused Pakistan's intelligence officials of
harassing its diplomats in Islamabad. "There have been serious
incidents of harassment of officials and their families at the High
Commission by Pakistani security agencies," alleged foreign ministry
spokesman R.S. Jassal.

Mr. Jassal cited an incident on Saturday when an unidentified man
entered the High Commission compound and "physically misbehaved" with
the two daughters of one embassy staffer. "We take the gravest view
of this incident. The government of India expects that the
perpetrator of this heinous crime, irrespective of his identity, be
arrested, prosecuted and punished according to law."

Mr. Jassal cited a separate incident in which an embassy staffer and
his wife were stopped and detained for 45 minutes at a checkpoint
between Islamabad and Taxila on Sunday. India has also accused
Pakistan's intelligence agents of ransacking the houses of two of its
diplomats on Aug 30.-AFP

India asked to shun hostile propaganda
By Ansar Abbasi

ISLAMABAD, Sept 6: Pakistan called upon India to desist from hostile
propaganda and avoid actions that might vitiate the atmosphere of
peace and security in the region.

In a statement, the foreign office spokesman "deeply regretted" the
latest allegations of harassment and intimidation of the personnel
and families of the Indian High Commission in Islamabad. As regards
the alleged molestation of a member of the staff of the high
commission on Sept 2, the spokesman said that the foreign secretary
at a meeting with the Indian high commissioner had stated that if the
allegation was true, it was highly regrettable. But at the same time
the foreign secretary told him that the matter, already referred to
the concerned authorities, would be thoroughly investigated and the
high commission would be informed of the outcome.

The spokesman deplored that instead of awaiting the completion of the
investigation and extending its cooperation, the Indian government
continued to make unfounded accusations.

In recent days, he said, the Indian government had made a string of
such allegations in an attempt to cover up the repeated acts of
harassment and intimidation against the members of the Pakistan high
commission in New Delhi.

As regards the decision of the concerned authorities not to allow an
Indian high commission official and his family to proceed to Taxila
on Sept 3, the secretary drew the attention of the high commissioner
to the standing instructions of the foreign ministry that members of
diplomatic missions in Islamabad must obtain permission before moving
out of its municipal limits.

Nazia laid to rest

LONDON, Sept 5: Famous vocalist Nazia Hassan was laid to rest. Nazia
Hassan started her singing career with a movie song called qurbani.
She and her brother Zohaib produced popular song albums which topped
music charts.

Nazia shot into limelight with the PTV's program "Sung Sung". This
program also featured her brother Zhoaib.

Nazia and Zhoaib received not only their education at London, but
also studied singing and music there. Although singers such as
Alamgir and Mohammad Ali Shehky were already in the popular singing,
it was Nazia who really popularized the pop music in Pakistan.

Nazia's album "Disco Deewany" became highly popular and it made a
record sale. She also worked on an important United Nations post.-APP

Government borrowing touches Rs40bn
By Mohiuddin Aazim

KARACHI, Sept 2: The government made a net borrowing of Rs40 billion
for budgetary support in the fiscal 1999-2000: In the credit plan for
fiscal 1999-2000 the target of government borrowing was set at minus
15 billion according to which the government was supposed to retire
Rs15 billion worth of bank credit instead of making net fresh

Sources close to ministry of finance told Dawn the government made a
gross borrowing of Rs104 billion in the last fiscal but at the same
time it placed Rs64 billion in special debt retirement account. Thus
the net borrowing stood at Rs40 billion. They said the government
missed the target of retiring Rs15 billion-bank credit instead of
making net fresh borrowing mainly because of suspension of foreign
debts from multilateral lending agencies.

The private sector plus public sector commercial enterprises (PSCEs)
made a net borrowing of around Rs23 billion from banking system of
which Rs15 billion related to the private sector proper. Under the
credit plan of fiscal 1999-2000, Rs104.5 billion were allocated for
private sector plus PSCEs.

The net credit flow of Rs15 billion in 1999-2000 presents a sharp
contrast against its net borrowing of Rs69 billion from the banking
system in the preceding year.

Knowledgeable sources maintain that the credit flow towards the
private sector remained slow for a couple of reasons one of which was
that in 1999-2000 the private sector made a net retirement of export
finance of around Rs8.5 billion. Whereas in 1998-99 it had received
Rs26 billion of export finance from banks.

Presidential Ordinance issued Import duty rates revised
By Ikram Hoti

ISLAMABAD, Sept 7: The federal government has revised import duty
rates on scores of items to protect the local textile, plastic,
electric, steel and other industries. The revision in duty rates has
been joint recommendations of the ministry of finance, commerce,
industries, Central Board of Revenue, National Tariff Commission and
Engineering Development Board.

The duty on pearl quality caustic soda has been increased from 10% to
35%. Duty on electric fan capacitors has also been increased from
zero to 35% Rates on these items had been made after presentations
given by manufacturing sectors.

Duty on crude oil and palm kernel oil has been reduced from 35% to
10%, on caustic soda, caustic potash, peroxides of sodium or
potassium (solid) it has been increased to the maximum tariff rate of

The anomalies in the duty structure pertaining to the garment
industry have also been removed from the budget. Previously, the
imported garments accessories were subject to 25%-35% duty.

Duty rates have also been revised on the following items, which in
future would not attract the rates specified in the Federal Budget:
caustic soda, caustic potash, peroxide of sodium and potassium
(solid) at 35 percent; gum case of a kind used for manufacturing
chewing gum from 25% to 35%; self-adhesive tape-plates, sheets, film,
foil, strip and other shapes of plastics whether or not in rolls,
from 15% to 25%.

Govt prepares tax holiday package for IT sector
Staff Correspondent

ISLAMABAD, Sept 7: The federal government has prepared a seven year
tax holiday package for the information technology sector.

Under the package, the IT companies would be allowed to enlist on the
stock exchanges. The Securities and Exchange Commission of Pakistan
would change rules to facilitate enlistment of such companies,
sources said.

The Central Board of Revenue has already agreed to provide a seven
year income tax holiday to the venture capital fund in order to boost
the investment in the information technology sector. The agreement
was struck at a meeting of finance ministry and the CBR officials,
sources said.

The venture funding companies would be investing in financing
incentives to attract the foreign and local investors in IT sector.
The ministry of IT and telecommunications had recommended these
actions, sources said.

Rs50bn more to be collected thru new tax regime
By Ikram Hoti

ISLAMABAD, Sept 8: The government has told the visiting IMF mission
that it aims for Rs50 billion more revenues by applying taxation
measures in the financial year 2000-2001. This amount would be in
addition to the money projected on the basis of growth in tax
receipts under the Finance Ordinance, 2000, as the duty schedules and
the rules announced in the federal budget in June for major revenue
areas have been changed.

Auditing of the taxpayers by the sales tax and income tax departments
during the current financial year is likely to fetch Rs10 billion in
addition to the estimated receipts (Rs172.6 billion and Rs137.5
billion) projected in the budget for the two departments,

The addition of Rs25 billion is also being projected by the sales tax
department through major post-budget measures which are apart from
the budgetary estimates based on growth of 15 per cent over the Rs120
billion sales tax collected in 1999-2000.

Three IMF officials visited the CBR on Thursday to gather fresh data
on taxpayer's registration and the system of issuing national tax
number (NTN). They were told by the CBR officials that 232,000 NTNs
had already been issued, and 600,000 would be issued by the end of
September. The officials added that by the end of December 1.2
million NTNs would be issued.

They were also briefed on measures taken for listing new taxpayers.
They were told that the new measures include registration of 20,000
new sales tax payers during 2000-2001 from a range of manufacture and
trade sub-sectors. This would add Rs5 billion more to the
department's receipts in the current financial year.

The department is also projecting an additional Rs9 billion from five
manufacturing sectors and two million retailers and dealers. The
manufacturers of cement, cigarettes, ice cream, fruit juices, aerated
water and beverages will have to pay 15 per cent sales tax instead of
two per cent. Another Rs3 billion sales tax are to be added through
the stricter implementation of the refund rules in the textile sub-
sectors.  The ST department aims to benefit by an additional Rs3
billion to be received through speedy settlement of appeals against
tax assessment by the newly-created tax adjudication collectorates.

The general amnesty offered by the sales tax department for payment
of arrears of the additional sales tax at 1.5 per cent and on
clearance of stocks-in-trade at two per cent are also estimated to
fetch an additional Rs2 billion (Rs1 billion each).

The department also aims to plugging the Rs3 billion leakage of tax
through banning the import of industrial raw materials by
unregistered importers in textile, plastics, steel and tanneries
sectors, during the current financial year.

US not to block IMF relief
By Tahir Mirza

WASHINGTON, Sept 2: The US is not expected to obstruct any program
that is worked out by the International Monetary Fund to resume
assistance to Pakistan following an IMF delegation's visit to
Islamabad in the coming week.

Under the sanctions imposed by the US against Pakistan after the 1998
nuclear tests, the Clinton administration must give a waiver to
enable IMF and World Bank to proceed with financial cooperation, and
Washington commands clout as the most influential voter on the two
international agencies' programs. But Pakistani diplomatic sources in
Washington appear hopeful that if the IMF team's visit to Pakistan
results in an agreement on a program to be supported by fund
resources, the US will not stand in the way.

Last year, a $1.56 billion loan package was stopped after the Nawaz
Sharif government failed to impose sales tax and a tax on
agricultural incomes. Since then, political considerations have also
intruded themselves and while the US has decided to keep engaged with
the Musharraf military regime, relations have been cool.

The IMF delegation will be looking at a program that could be
supported out of fund resources. Its reaction to the efforts made so
far on getting the business community to accept across the board
sales tax and the progress made in resolving the HUBCO issue will be
crucial to the coming Islamabad talks. The chief executive will no
doubt be asked during his visit to New York beginning on September 5
to provide assurances on both these issues.

The last IMF loan aid was in May 1999 when Pakistan was given $51

IMF assesses steps to end tax evasion
By Ikram Hoti

ISLAMABAD, Sep 4: IMF experts started an appraisal of measures being
taken by Pakistan to end tax evasion, particularly in the textile
sector and those relating to increasing government revenues.

A meeting of the Central Board of Revenue officials and IMF experts
examined all such measures being taken for the last two months to
remove distortion in the taxation structure. The IMF experts are also
scheduled to examine the income tax structure, which at present gives
unlimited powers to the assessing officers, which cause intimidation
to taxpayers.

The IMF experts also sought details from CBR on the performance with
regard to registration of businessmen remaining out of the tax-net.
An IMF team had demanded these details during the appraisal last
year. "We told them that maximum concessions have been offered to the
sectors in which most of the undocumented activity has been found, to
get registered and to pay tax in accordance with the prescribed
rules. In this connection, they were told that the Income Tax and
Sales Tax departments have offered amnesty on stocks-in-trade, and
have given traders a deadline of Sept 30, 2000, to get registered and
declare all their stocks and incomes, failing which the CBR will
start taking action," he added.

Other official sources told Dawn that the newly formed system of
reconciliation of federal tax collection figures would also be
examined by the IMF experts. This system has been evolved after
Pakistan conceded to the Fund that the 1998-99 tax collection figures
were tampered with, to show inflated revenue deposits. In this
connection, the team members are also expected to consult the Auditor
General and State Bank of Pakistan's relevant officials. Under the
new system, SBP Governor is bound to obtain complete details on
federal revenue deposits, every month, for onward submission to the
IMF. It has also become mandatory for the CBR to attach a list of
latest position on rebate/refunds/arrears of Income Tax, Sales Tax,
Customs and Central Excise Duty, to the reconciled net/gross tax
collection figures.

The period for which the reconciled figures would be coming under
discussion at the meeting pertain to July-March 1999-2000. The SBP
Governor has already submitted these figures to the Fund.

IMF experts assess forex market
Staff Reporter

KARACHI, Sept 6: A four-member technical mission of the IMF has
started seeking first hand information on foreign exchange and
monetary policies of Pakistan with particular focus on the issues
related to their implementation.

Sources close to IMF said, the mission led by Advisor to the IMF on
monetary and foreign exchange affairs Abdessatar Ouanes met senior
officials of the State Bank, including advisors and executive
directors. The mission is supposed to provide input to an IMF
negotiating team currently in Islamabad. The findings of this mission
would serve as the basis for the recommendations of the main mission.

They said the members of the mission sought information from the
officials on transparency and even-handedness in implementing SBP
policies in foreign exchange market which underwent a process of
liberalization in past two years. They expressed reservations on
certain regulatory steps like the imposition of a cap on inter-bank
exchange rates after a so-called rupee float in May 1999 and the
State Bank buyings of dollars from the open market.

The sources said SBP officials explained that the cap had to be put
in place to stop dollarization and capital flight. But the officials
had no answer when the IMF mission asked why then the cap was lifted
in July this year.

SBP officials explained to the mission that the central bank had to
buy dollars from the open market to finance current account deficit
after suspension of IMF funding but the members of the mission were
of the view that the purchases could have been minimized - and
eventually avoided after some time.

SBP had purchased around $1.6 billion from the open market in fiscal
1999-2000 and it may have to purchase $1.0-$1.5 billion during the
current fiscal year.

IMF team discusses oil price-hike
Bureau Report

ISLAMABAD, Sept 6: The visiting IMF review mission again met
officials of the ministries of finance and petroleum and discussed
issues pertaining to state corporations, banks and further
deregulation of petroleum sector.

Sources said that the mission first visited the ministry of finance
and met the Secretary-General, Finance, Moeen Afzal; Secretary,
Finance, Younus Khan, and other senior officials. The mission was
told that the government was trying to cut losses of public sector
corporations, specially by disinvesting them through the
Privatization Commission.

The mission was also told that due to a number of reforms in the
banking sector, nationalized commercial banks had considerably
succeeded in reducing their losses. It was informed that the
government was restructuring banks through golden handshake and
voluntary retirement schemes.

Later, two members of the mission visited the ministry of petroleum
and natural resources and discussed prospects for further
deregulation of the petroleum sector. They were told that the
government had already opened up the sector, specially by
reconstituting the petroleum companies' board of directors. They were
told that the government had linked the petroleum prices to
international prices and if there was a fall in international prices
the prices in Pakistan would also come down.

The sources said both sides, in fact, discussed the possibility of
increasing oil prices in Pakistan by 7 to 11pc. Some other sources
claimed that the prices could be revised upward by 15 per cent.

The mission was also informed that the government intended to
disinvest petroleum sector and, as a first step, 30 per cent
government's shareholding would be privatized early next year. In
this regard, the Privatization Commission was trying to find out more
international buyers. The mission was told that some of the major
international petroleum companies like Shell Oil were interested in
taking part in the privatization of petroleum sector.

Beefing up forex reserves: Roosevelt Hotel may be sold soon
By Shaheen Sehbai

NEW YORK, Sept 6: Pakistan's highly profitable and prestigious
investment in the center of Manhattan, the Roosevelt Hotel will soon
be up for sale, according to sources close to the finance minister.

The over 1000-room hotel, renovated recently to bring it up to the
Four-Star level, with rents ranging from $ 250 to $2000 per night, is
now being viewed by Finance Minister Shaukat Aziz and his key
advisers as the source for the much-needed hard cash to beef up the
country's foreign exchange reserves.

Insiders said Mr Aziz had instructed PIA officials to quickly dispose
of the hotel as this was the time it may get the best price. But Mr
Jabbar apparently opposed the move in a mild tone. Yet hotel insiders
say that, to sell the hotel would hardly be of any help to the
foreign exchange reserves as the net cash that would come in as a
result of the sale would be much less than the price which may be
quoted. "Selling off the hotel would be like killing the goose that
lays the golden egg," a hotel source, with the knowledge of its
accounts, told Dawn.

Rough estimates by experts indicate that the best price that may be
obtained for the Roosevelt would not be over $350 million at this
point in time. Of this, at least $90 million would go out in taxes to
the US government. Another $36 million has also to be paid in over
due taxes if the hotel is sold. So the net that would be left would
be about $214 million. Of this amount, PIA would get about $170
million, as its principal and interest, which it invested in
renovation of the hotel in the last couple of years.

That would leave $44 million, which would be split between the
Pakistani and Saudi owners of the hotel. The other side of the
picture, experts say, is that the hotel is bringing a net cash flow
of $30 million every year after paying all taxes, expenses, etc. So,
in six years, PIA and the hotel management would get more than the
$170 million that PIA is expecting from the sale of an asset which
stands out as the mark of Pakistani corporate success in the heart of
New York.

Sources say the driving force behind a quick sale of the hotel is the
lucrative sum of about $170 million which PIA may get and which the
finance ministry may account for as part of its reserve. But experts
say if PIA were to borrow $170 million, the Roosevelt could take care
of all its installments and interest payments and still save some
money from its net cash flows.

It is not clear how the General would respond to the suggestion that
a success story of Pakistan, making enough money to pay for itself
and also save something for Pakistan, should be sold off for some
hard cash. The fear among many is that the General and his top
decision-makers are not being told the real story about the hotel and
some vested interests want to sell it off for short-term gains.

Package announced for EPZ investors
By Ikram Hoti

ISLAMABAD, Sept 6: Under a new package of facilities to the EPZ
investors, the Export Processing Zones have been allowed by the
government to import finished goods duty and tax-free for onward
export to regional states.

Restrictions of removing duty and tax free machinery and vehicles
imported by them have been removed, and the EPZ manufacturers have
been accorded the status of bonded warehouses. The facility of
importing finished goods for onward export without payment of duty
and taxes is available to no other category of investors in Pakistan.
The EPZ investors would, however, pay duties and taxes on such goods
if they sell them into the local market.

Central Board of Revenue has issued two notifications in this regard.
They have also been allowed to dispose of discarded articles and
waste materials at 3 per cent of duty calculated on the basis of
total value.

Stocks maintain uppish leaning
Staff Reporter

KARACHI, Sept 8: The KSE 100-share index, finished with a modest rise
of 3.77 points at 1,577.00.

Good gainers were led by Javed Omer, Kohinoor Weaving, Noon Sugar,
Bolan Casting, Glaxo-Wellcome, Reckitt and Colman and BOC Pakistan,
which showed gains ranging from Rs 2.00 to 3.65.

Lever Brothers, which fell by Rs24.00 led the list of losing shares,
followed by National Refinery, Bengal Fibre, Legler Nafees, EFU
General, Sally Textiles, and Gulistan Textiles, falling by Rs 1.85 to

Trading volume rose to 150m shares from the previous 132m shares as
gainers held a modest edge over the losers at 121 to 67, with 46
shares holding on to the last levels.

HUBCO again topped the list of most actives, lower 20 paisa at
Rs19.30 on 59m shares followed by PTCL, higher five paisa at Rs26.30
on 23m shares, ICI Pakistan, up 25 paisa at Rs14.25 on 22m shares,
PSO, lower 80 paisa at Rs178.10 on 14m shares and Ibrahim Fibre, up
70 paisa at Rs16.25 on 6m shares.

Other actives were followed by Sui Northern, easy 15 paisa on 5m
shares, Dewan Salman, up 70 paisa on 4m shares, Telecard, off 30
paisa on 2.413m shares, Dhan fibre, up 20 paisa on 1.822m shares and
FFC-Jordan Fertiliser, lower 15 paisa on 1.526m shares.

DEFAULTER COMPANIES: Trading on this counter was fairly active where
21,000 shares changed hands mostly on the higher side, reflecting the
presence of buying support in textile shares. Shahpur Textiles and
Sajjad Textiles topped the list, up 20 paisa and Rs1.75 at Rs1.50 and
3.00 respectively on 5,500 and 5,000 shares. Allied Motors followed
them, steady by five paisa at Rs1.80 on 3,500 shares. Market at a

TONE: firm, total listed 764, actives 261, inactives 503, plus 121,
minus 94, unc 46.

KSE 100-SHARE INDEX: previous 1,573.33, Friday's 1,577.00 plus 3.67

TOP TEN: gainers Mehmood Textiles Rs9.40, Hoechst 5.00, Pakistan
Oilfields 4.00, BOC Pakistan 3.65, Reckitt & Colman 3.15.

LOSERS: Lever Brothers Rs24.00, Gulistan Textiles 3.00, Bengal Fibre
2.50, EFU General 2.00, Legler Nafees 2.00.

TOTAL VOLUME: 149.999m shares.

VOLUME LEADERS: Hub-Power 59.074m, PTCL 22.903m, ICI Pakistan
22.386m, PSO 14.007m, Ibrahim Fibre 6.067m shares.

Back to the top
Gen Agha Mohammad Yahya Khan - 2
By Ardeshir Cowasjee

IT takes time for the whole truth to emerge. A simple way to get at
it would be to encourage the people of Pakistan's mole in RAW to be
more industrious.

Be that a sit may, wherever old Yahya Khan may now be sporting
himself, he would be happy to know that there are some earthlings who
remember him with fondness and with joy.

For one, there is old Mrs. Jer Irani, the widow of Major Jimmy Irani
of 10 Baloch Regiment, who came over to see me the other day with her
album of old photographs. She proudly pointed out the youthful faces,
in happier bygone days, of Generals Ayub Khan, Adam Khan, Yahya Khan,
Hamid Khan, and Brigadier Hesky Baig, saying in Gujerati. "Badha
gentlemen manas utah, kehvi sari reetay varte ne kehva broad-minded!"
(They were all gentlemen,how well behaved and broad-minded they

She recounted how, when her husband was the Administrative Commandant
at Murree, Yahya would ring up on a Saturday evening and merely say,
"Keep soda and ice ready," and how he and the other Bobsie Twin,
Hamid Khan, used to motor up from 'Pindi and together with Jimmy
would spend a merry evening toasting their absent friends.

Then there was Jimmy Midwood of Burmah Oil, Yahya's good friend and
the boss of Ali, his son. Quite in character, as soon as Zulfikar Ali
Bhutto took over from Yahya, Midwood, much to his regret and against
his conscience, was prevailed upon by the revengeful president of the
Republic and the world's first civilian martial law administrator to
sack Ali Yahya.

Now to the continuation and ending of General Agha Mohammed Yahya
Khan's journal, written in 1976, the first part of which was included
in my column last Sunday:

"....Nobody has been a more faithful student of Dr. Goebbels than

"No government in the world has tried to build its image so much by
maligning the previous government in order to build its own image,
mostly based on falsehood. Example - we have created the Province of
Baluchistan, we have brought a Russian steel Mill which the previous
government did not have the courage to do, we merged the states in
Pakistan. We started the heavy mechanical complex in Taxila from
[the] Chinese, we thought of the 5th tunnel of the Tarbela Dam, we
started the Islamic Summit Conference (forgetting the Rabat
Conference where India was disgracefully ousted!), we have started
the Tribal Area Development (forgetting the Tribal Development
Authority started by the previous government). These are a few
glaring examples of falsehood, but of course the man is so good and
such an expert in telling lies, and so often. The goats of the public
media, radio and TV, and other goats like Kausar, Mubashir, Hafeez
and all the unscrupulous yes-men have proved to be true followers of
Goebbels and Shora.

"I have always maintained that ambition is a natural human trait.
Without ambition progress cannot be maintained in the world. It is a
natural quality in a man. But, ambition must be controlled.
Uncontrolled ambition becomes a menace. So ambition and a lust for
power are the greatest menaces to have been gifted to this man.
Nothing and nobody must be allowed to come in his way. Even his
nearest and dearest ones - parents and children - could be sacrificed
as long as his own ambitions are achieved. This has been proved over
and over again. Examples:

J. A. Rahim, Mairaj Mohammad Khan, Ramay (two of them appointed as
his successors).

"Dr G.W. Chaudhry, my Bengali minister, in his book has said: "He had
to choose between two 'Ps', Pakistan and Power, and he chose the

"Nawab Muzaffar Qizilbash, my finance minister, once told me that a
foreign friend, an eminent psychologist, had told him that if this
man does not get into power within a year he would go mad. I wish he
had gone mad instead of breaking Pakistan to satisfy his lust for

"Mujibur Rahman: Shora loathed him to such an extent that when I was
going to Iran in October 1971 to attend the 2500th anniversary of
Iran's monarchy he told me to wind up the military court's
proceedings quickly and finish off Mujib. I told him that until the
proceedings of the court are finalized I cannot make a decision. He
said that in Iran all sorts of pressures would be brought against me
by heads of state to let off Mujib, so I must act at once and hang

"It shocked me to hear this from a so-called political leader of our
country who claims to be so democratic and a people's man.

"Then again, when I was handing over to him on December 20, 1971, I
told him that the proceedings of the military court have been
received and are being examined by the law ministry before I could
take a final decision. The way he told the nation that I had ordered
the execution of Mujib and that he had saved him! Lies! Lies! Lies!
But then what else could be expected from a master liar? It can be
checked up with the proceedings of the military court and the dates
and timings of the case, which was being processed by the central
government offices. The funny thing was that good Mujib believed him
when he told him that Yahya wanted to hang him but Bhutto saved
him."Incidentally, he was not the only one who wanted to finish off
Mujib. Earlier, in one of my meetings with that cripple Nurul Amin
and Mahmood Ali, they both told me that they cannot control the
Pakistan Pasand and Islam Pasand Bengalis unless I finish off Mujib.
My reply was that if this was the thinking of Pakistan's politicians
- that they wish to finish each other off - God help Pakistan from
such politicians.

"September 1, 1976: Today's papers (Nawa-i-Waqt and Sun) quote Tehran
Journal, an article based on a visit to Pakistan and an interview
with Shora. Two great lies come out.

(A) Yahya was responsible for the break-up of the country and Shora
was quick to 'pick up the pieces', etc, etc. Now, for the journal to
be brainwashed or bribed to say such falsehoods is at the least mean
and unscrupulous.

(B) The Journal goes on to say that he was responsible for
masterminding the 'detente' between China and the US. This is the
first time that I have read this. It is quite obvious that over the
past five years he was burning with jealousy because I was
responsible for that great detente between the two mighty nations, US
and China. He has been thinking all this time how to turn this to his
own advantage.

"Kissinger on two or three occasions had stated that America would
never forget the helpful [role] played by Pakistan in bringing the
two countries together. Of course, this was not relished by 'him' and
'he' was really burning up. At last he managed to get hold of the
Tehran Journal 'goof' and made him believe that 'he' masterminded the
whole thing. Absolute and utter lies! It was I who had told him how I
did it all, single-handedly. Not a soul knew about it. Even our
Foreign Office was not in on it. President Nixon's letter to me
speaks the truth.

"Steel Mill of Pakistan: Government records and some educated people
know fully well that I, during my visit to Moscow, entered into an
agreement with the Soviet Union for the establishment of a steel mill
in Pakistan. A loan was agreed and signed by M.M. Ahmed and a Soviet
expert. A site was selected near Hawkes Bay by some government
experts - this I later changed during my visit to Karachi to a place
near Pipri. A Steel Mills Corporation of Pakistan was established
(S.M. Yusuf was the Chairman). A team was sent to Russia for training
and all the preliminary work on the construction of roads and
railways, and a port, etc, etc, was progressing when I left. It is
now loudly and repeatedly claimed that the Steel Mill was started by
them. What cheek and lies!!

"Tarbela Dam: As it happened, the credit for Tarbela is being taken
by them and the blame put on the 'previous governments.' It was in
1970 when M.M. Ahmed put up a case to me for the establishment of the
5th tunnel for the Dam. After a great deal of thought and having been
convinced of the requirement of the 5th tunnel, I gave the 'go ahead'
signal for its construction. The work started at our own cost (not
the World Bank Consortium's). Of course, now the credit for this 5th
tunnel goes to 'them'!!

"November 1976: As the time for elections approaches, he has started
making all sorts of excuses. Sometimes internal matters, sometimes
external. India is quoted as an example for postponement. What an

"On the demand of the opposition he blames Yahya for giving too long
a period for the electioneering campaign.

"Well, he himself has been campaigning for the last five years,
singing his own praises and 'achievements', mostly false, by means of
public meetings, TV, radio and the press. What is an election
campaign, may I ask?"

On the subject of Yahya, his army career, and the role he played in
the dismemberment of our country, more needs to be written now that
the issue has been reopened.

Journalism in the Internet age
By Ayaz Amir

JOURNALISM is a pale shadow of itself if it draws no blood. A
journalist may well be on the payroll of a secret service. His or her
services may well be for hire. But that is not how it is supposed to
be. The press is supposed to have an adversarial relationship with
the state or rather with the political and military establishment
which controls the state�s levers.

To some extent all politics is a matter of lies and chicanery. Also,
pomposity, because all wielders of power run the risk of taking
themselves too seriously. The first and foremost business of the
press is to point out the lies and expose the chicanery. And prick
the balloon of pomposity. When the press performs this function it
helps to clear the air and put things in context, two of the other
things it must always be doing.

The press does not always live up to this ideal. Journalists are a
self-regarding lot, apt to think too much of themselves. Having an
inordinate weakness for supping with the good and the great they
fancy themselves as power brokers. The irony of this is heightened
considering the fact that journalists can also be ignoramuses,
especially in a country like Pakistan where the press is often the
last refuge of the half-educated man who has ambitions above his
station in life. But this is the comic reality and not how things
should be.

A journalist is no journalist if he lacks passion. Take the greatest
of them all, Henry Louis Mencken. He wrote in a memorable style
packing wit and vitality in every sentence. With this as his weapon
he commented upon the American scene, poking merciless fun at its
politics and morality and the pretensions and hypocrisy of the
leading political players of his generation. With every thrust he
drew blood.

Mencken on his homeland: "...the United States is essentially a
commonwealth of third-rate men (where) distinction is easy... because
the general level of culture, of information, of taste and judgment,
or ordinary competence is so low...Third-rate men, of course, exist
in all countries, but it is only here that they are in full control
of the state, and with it of all the national standards." This comes
uncomfortably close to describing Pakistan: third-rate men in rampant
control of everything. But, seventy and more years on, it is also a
welcome corrective to the arrogance and superior airs which the US
has started wearing since the collapse of communism.

Mencken on politicians: "...If experience teaches us anything at all
it teaches us this: that a good politician, under democracy, is quite
as unthinkable as an honest burglar...The politician, at his ideal
best... is a necessary evil; at his worst he is an almost intolerable
nuisance." And here is Mencken on his own profession of journalism:

Most of the evils that continue to beset American journalism today,
in truth, are not due to the rascality of owners nor even to the
bombast of business managers, but simply and solely to the stupidity,
cowardice and philistinism of working newspapermen. The majority of
them, in almost every American city, are still ignoramuses, and proud
of it. All the knowledge that they pack into their brains is, in
every reasonable cultural sense, useless; it is the sort of knowledge
that belongs, not to a professional man, but to a police captain, a
railway mail-clerk, or a board-boy in a brokerage house." This last
applies quite well to the broad fields of Pakistani journalism.

Granted that a newspaperman with Mencken�s style and erudition (he
had read widely) comes marching once a century. Even so, for all
votaries of the journalistic craft his is the model to follow:
drawing blood and leaving an indelible image behind when putting pen
to paper or, in the e-mail age, tapping a computer�s keys.

But in a country like Pakistan whose pillars and scaffolding cannot
take the strain of too much sarcasm or raillery, it is not easy to
follow the Mencken trail. Write too harshly about the ways of the
Republic and you stand accused of subverting its foundations. Say
what scumbags its rulers are and you will be accused of cynicism.
Point to the hopelessness of the national situation and be ready to
shoulder the charge of negativism.

All this is made worse by the internet. Not so long ago when you
wrote for a newspaper you were primarily addressing a domestic
audience. Now with most English language newspapers being carried on
the net, what someone writes can be picked up with equal ease in
Andhra Pradesh or California. With this technological expansion in
the reach of the written word, anything critical that you write of
your country, even if justified by the evidence, can be grist to the
mills of your country�s detractors.

This is especially true in the Indo-Pak context. With India trying to
portray the Pakistan army as a �rogue army�, with India trying to
prove that Pakistan is a failed state, with the United States
pursuing its own agenda and indiscriminately labeling everything
within sight as an example of terrorism or fundamentalism, the knight
of the printed page faces a dilemma. The requirements of his trade (I
will not say the truth for that is a dicey word) will pull him in one
direction, regard for country (I will not say patriotism for that can
have a funny meaning) in another. What is he or she to do?

Living in a small town, and in the centre of it to boot, with my
companions mostly ordinary folk as opposed to the high-minded
citizens of Islamabad or the other big cities, I have a fair idea of
how bad things are as a result of the military takeover. Even in a
military-recruiting town like Chakwal, ordinary folk complain in the
harshest terms about army rule which they hold responsible for high
prices, unemployment, the sluggishness of the bazar, the municipal
engineering (mostly maladroit) of which the army monitoring teams
seem to be so fond. This is the overwhelming reality on the ground.
How to balance it against the need to present a good image of the

Soon the military government�s first anniversary in power will be on
hand. What can it look back to? Little by way of any tangible
achievement, a great deal by way of drifting and confusion. What to
talk of the economy being turned around, NAB-style accountability has
dried up the last wells of investment, domestic or foreign. Untouched
by reform, the bureaucracy remains the mess it was. Foreign policy is
a series of defensive reflexes activated by external stimuli.

It is a measure of what things have come to that a nondescript figure
like the Commonwealth secretary-general, who would not be taken
seriously anywhere else, gets royal treatment here with politicians
of every hue vying with each other to dance attendance upon him. A
German tourist gets raped in the north and the nation, beginning with
the English language press, is deluged by a tide of self-
recrimination. As if such things do not happen elsewhere. Blacks have
been murdered by white thugs in Germany. There is a proper sense of
outrage and the law takes its course. But the country is not seized
by a frenzy of self-loathing as is to be seen here at the slightest
opportunity. Low self-esteem, that�s what it is.

All these facts are pretty well known. But the question remains: how
far should we take self-criticism? We should not be blind to our
follies. That�s the path to sure ruin. But at a time when the
country�s stock is low internationally and we are being assailed on
every side for sins, real and invented, to what extent should we make
a fetish of honesty? This is the predicament facing the Pakistani
journalist in the Internet age.

Curbing the spooks
By Irfan Husain

A FEW days ago, this newspaper carried a report from its Islamabad
bureau to the effect that the Chief Executive was now relying on
information from the ISI to decide senior civil service promotion

Apparently, a number of officers on the panel have been superseded
because the intelligence agency found them to be corrupt. Now I have
no way of knowing whether the charge is accurate or not, but this
method of assessing the suitability of officers to further promotion
raises a number of disquieting questions. Firstly, the officers
concerned have no way of defending themselves. Just because a low-
level intelligence official files a report saying that X, Y or Z is
living in a big house or driving an expensive car is not necessarily
proof of corruption: he could have private means, or be married to a
rich woman.

Without holding any brief for crooks, the point I am making is that
this recourse to intelligence agencies in such cases flies in the
face of natural justice as an assumption of guilt is made without
either informing the individual of the charge, or allowing him to
offer an explanation in his defence. And if the Chief Executive is
indeed convinced that this group of officers is corrupt, then surely
they should be sacked. Merely being overlooked for promotion is not

But what is more worrying than the careers of a few civil servants is
the involvement of the Inter Service Intelligence in such mundane,
purely domestic matters. Surely its agents have better things to do
than calculate how much our civil servants are spending. Given the
situation in Afghanistan and Kashmir, one would imagine that the ISI
has its plate full. And surely the threat perceived by our leaders
from across our eastern border should be the proper focus of military
intelligence. As it is, there are more than enough civilian outfits
who go around snooping in areas of little interest to most of us.

In a very interesting article written by Benazir Bhutto in The Nation
recently, the ex-Prime Minister has dilated on the rise of
intelligence agencies in Pakistan. While she has glossed over her own
(as well as her father's) role in supporting this massive expansion,
Ms Bhutto has given details of how officers who have served in the
ISI have been rewarded with diplomatic assignments, and how the
resources of military and civilian intelligence agencies have been
expanded so that they are now operating down to the tehsil level.

While the ISI was headed by a Brigadier until the seventies, the post
was upgraded and the agency was headed by Lt-General Jilani under
Bhutto. It was he who advised the prime minister to appoint Ziaul Haq
as COAS, and according to reports, it was General Jilani who warned
Zia that he was about to be sacked, thus triggering the coup of July,
1977. After the United States, China and other countries started
sending billions of dollars in cash and equipment to the Afghan
freedom fighters through the ISI, the intelligence outfit was
expanded considerably, and it acquired a major role in policy-making
in Afghanistan.

During Mr Bhutto's term, a political cell was created in the ISI to
monitor opposition activities. This was the first time this agency
was given a domestic role, and under Zia, this capacity was steadily
increased. Both Benazir Bhutto and Nawaz Sharif relied heavily on ISI
reports to keep tabs on their rivals. But it was not until General
Aslam Beg admitted in the course of a Supreme Court hearing that the
ISI had received Rs 140 million from Mehran Bank to rig the 1990
election that we learned the extent and nature of the agency's
involvement in national politics. Apparently, the ISI had cobbled
together the Pakistan National Alliance to prevent the PPP from
returning to power after it had been turfed out by the president.
Needless to add, the politicians who benefited from Mehran Bank's
largesse and the ISI's patronage are still masquerading as democrats.

Today the country is awash in spooks of every description. Apart from
the ISI, there is Military Intelligence, the Intelligence Bureau and
the FIA. In addition, the provincial police forces have any number of
plainclothes cops, and all the armed forces have their separate
intelligence agencies. Phones are routinely tapped without any legal
authority and letters opened without let or hindrance. Most of these
agencies have huge budgets that are not subjected to scrutiny or
audit. They are answerable to nobody but their own immediate

In the last decade, there have been four elected governments, and
neither of the two prime ministers who headed them have been able to
reduce the size or role of the intelligence agencies in domestic
politics. On the contrary, they relied on them to hang on, knowing
all too well that the spooks could destabilize their governments when
they chose to. The infamous "Midnight Jackal" operation was mounted
in 1989 by retired Brigadier Iqbal and Major Aamir - both Nawaz
Sharif's hatchet men - to topple Benazir Bhutto.

Ever since the present military government took over last October,
the newly created National Accountability Bureau (NAB) has recruited
on a considerable scale, mostly from among retired army officers.
These gentlemen have taken to spending their time in government
corporations and departments, trying to get details of past scams.
But since their grasp of accounting and contracts is uncertain, they
want serving civil servants to explain the finer points of purchase
procedures to them. So far, this brigade of retired officers has
failed to do much except bring decision-making in these organizations
to a virtual halt.

The problem in having an army of spooks is that apart from the
enormous costs involved, they have to find things to do to justify
their salaries. And what they do is spy on citizens who pose no
threat to national security. This will inevitably result in a serious
erosion of our civil rights as half-baked reports from intelligence
sources come to shape our future.

Indeed, the whole business of having intelligence agents monitoring
the administration and the political system is against the spirit of
democracy and the open society it seeks to promote. If any future
civilian government has the political will to reduce their numbers
and powers, they will turn against it and destabilize it. Here then
is another job for the Chief Executive: bring the spooks to heel.

New rules on ball tampering framed
Sports Reporter

KARACHI, Sept 5: Any bowler found tampering with the ball will be
suspended from bowling in that innings and an additional five runs
would be awarded to the batting side.

According to the new rules of the game, to be implemented from Oct 1,
the umpires shall inform the fielding captain and will then ask him
to remove the bowler who will then not be allowed to bowl again. The
modified rule, however, states that this procedure would be
implemented after the first warning of the umpires have fallen into
deaf ears. While the bowler will be banned from bowling in that
innings, five penalty runs would be awarded to the batting side even
after the first warning and followed up by the extreme action of the

Nevertheless, it has been made mandatory for the umpires to
immediately replace the tampered ball with a replacement ball of an
almost similar condition. Unfortunately, this clause of law 42.3 (i)
was not followed by New Zealander John Reid while he suspended and
fined Pakistan's premier fast bowler Waqar Younis in Sri Lanka.

It has also been added in the law that the umpires would inform not
only the fielding captain but also the batting captain as to actually
what had happened and what action he was taking.

In addition to this, the umpires shall report the occurrence as soon
as possible to the match referee who shall take such action as is
considered appropriate against the captain and team concerned.

It has also been clarified in the law that the player is entitled to
remove the dirt or mud from the ball. But that has to be done under
the supervision of the umpire and player failing to comply with the
instructions will be subject to disciplinary action.

FAIR DELIVERY: The rules committee, after a hue and cry over the
clarity of the law as to what constitutes as chucking, has also
defined what is a fair delivery.

Law 24.3 states: "A ball is fairly delivered in respect of the arm
if, once the bowler's arm has reached the level of the shoulder in
the delivery swing, the elbow joint is not straightened partially or
completely from that point until the ball has left the hand.
"This definition shall not debar a bowler from flexing or rotating
the wrist in the delivery swing."

Shoaib Akhtar, Muttiah Muralitharan, Brett Lee, Shabbir Ahmad, Kumara
Dharmasena and Rajesh Chohan have all got their careers affected, as
until now the rules weren't clear.

The law doesn't restrict as to which umpire would call or signal No
ball if he considers that the ball has been thrown. Both the umpires
have been empowered to signal and call if they think the delivery is

The law further states that after two official warnings, the bowler
will be banned from further action in the innings. However, on all
the three accounts, the umpire will have to call and signal No ball.

The clarification in the law was required after Darryl Hair called
Muralitharan seven times in an over in 1995 but the bowler was not
suspended from further action in the innings. In an another
significant change, it has been decided that the wicketkeeper's
gloves shall have no webbing between fingers except that a single
piece of flat non-stretch material may be inserted between index
finger and thumb solely as a means of support.

Normally, the wicket keepers use the material between the index
finger and the thumb as pouch in which the ball often sticks and
provides them extra advantage to dismiss the batsmen.

THE PREAMBLE: For the first time, The Preamble - The Spirit of the
Game - has been included in the laws of cricket. While the captains
and players roles have been clearly defined, the law allows the
umpires to intervene in time wasting, damaging the pitch, dangerous
or unfair bowling, tampering with the ball and any other action that
they consider to be unfair.

The Spirit of the Game involves: respect for your opponents, your own
captain and team, the role of the umpires, the game's traditional
values; and against the Spirit of the Games constitutes: to dispute
an umpire's decision by word, action or gesture; to direct abusive
language towards an opponent or umpire; to indulge in cheating or any
sharp practice, for instance to appeal knowing that the batsman in
not out, to advance towards an umpire in an aggressive manner when
appealing, and to seek to distract an opponent either verbally or by
harassment with persistent clapping or unnecessary noise under the
guise of enthusiasm and motivation of one's own side.

Pakistan clinches hockey series

KARACHI, Sept 2: Pakistan clinched the four-match hockey series when
they beat New Zealand 1-0 in the third Test at Auckland. Spearhead
Kashif Jawwad scored the match-winner in the 27th minute on a pass
from halfback Irfan Yousuf, manager Islahuddin Siddiqui said from

Pakistan forced six penalty corners but failed to convert. The first
Test ended in a 1-all draw, while the second was won by Pakistan by a
solitary goal. The fourth and the final Test will be played on

Pakistan whip Kiwis 5-1 in final hockey Test

KARACHI, Sept 3: Pakistan rounded-off its preparatory tour Down Under
by whipping New Zealand 5-1 in the fourth and final hockey Test in
Auckland to take the series 3-0.

Pakistan enjoyed 3-0 advantage by half time and added two more goals
in second session to show its scoring powers, Pakistan manager
Islahuddin informed on telephone from Auckland.

Right-in Atif Bashir who seemed to be gaining rhythm for the upcoming
Olympics, struck two snaps goals. Center forward Kashif Jawwad,
right-in Muhammad Sarwar and full back Sohail Abbas scored one goal a

Pakistan got-off to a whirlwind start when Muhammad Sarwar put
Pakistan ahead in only the second minute after connecting a fine pass
from Muhammad Anis.

Pakistan penalty corner specialist Sohail Abbas converted a penalty
in 14th minute. Pakistan collected seven penalty corners. Atif who
looked in good touch consolidated Pakistan's position in 23rd minute
when he scored on a combined move to make it 3-0.

Former Pakistan captain Atif Bashir scored his second goal in 58th
minute in combination with left winger Muhammad Nadeem. Eight minutes
from time Kashif Jawwad completed the tally in coordination with
Muhammad Anis and Muhammad Sarwar.-APP

Griffith contacts PCB: Pakistan set India Sept 29 deadline
Sports Reporter

KARACHI, Sept 4: The Pakistan Cricket Board (PCB) has set their
Indian counterparts Sept 29 as the deadline to confirm their tour.
PCB chairman Lt Gen Tauqir Zia said that although the board was aware
that the ball was in the court of the Indian government, yet he
insisted that the contingency plan has to be given a final shape.

"We plan to play a series against Bangladesh. The other proposal is
to have a series against a World XI. Initiative can only be taken
once we know exactly about the Indian approach," Zia said.

The general said he would be meeting his Indian counterpart A.C
Muttiah in the Asian Cricket Foundation (ACF) meeting and would give
him the deadline. India are scheduled to play three tests and five
one-day internationals between Dec 26 and Feb 12.

Pakistan tour: India to decide at month's end

NEW DELHI, Sept 6: Indian cricket authorities said they would decide
at the end of this month whether to accept an invitation to tour
Pakistan. The proposed tour remains in doubt due to the ongoing
political dispute between the two countries over Kashmir.

The 1983 World Cup winners are due to play three Tests and five One-
day Internationals from December to February but the Indian
government wants to sever sporting links with Pakistan in light of
the trouble in Kashmir.

Pakistan broke the Test deadlock between the two nations when they
toured India for a three-Test series in 1999, after a gap of 12
years. "We are going to discuss the proposed tour at a general body
meeting on the 29th (of September)," J.Y. Lele, secretary of the
Board of Control for Cricket in India (BCCI), told Reuters by
telephone from Baroda.

The Pakistan Cricket Board (PCB) had urged India to end the
uncertainty over the tour. "India must set us a deadline so we can
make alternative arrangements. We would either play a series against
Bangladesh or invite a World XI in case India refuse to come," PCB
chairman General Tauqir Zia said. "Whenever I meet Indian Board
officials they show an inclination to play Pakistan but their
decisions are taken by their government."-Reuters

Reclaiming hockey gold a tall order for Pakistan
By Nadeem Yaqub

PESHAWAR: It has been 16 years since Pakistan won an Olympic gold
medal in men's hockey - and that's rather a long time for a country,
which once so dominated the sport that wherever it played the only
question for bookies was who would come second. But as Pakistan's
class of 2000 left for Sydney in August, seeking the gold that has
dodged them since the Los Angeles Olympics in 1984, not many pinned
their hopes on the team.

Internal bickering within the Pakistan Hockey Federation has hampered
preparations, ending with a new management taking over just weeks
before the team's departure for warm-up matches in Australia and New

The sudden arrival on the scene of two serving army officers - Lt Gen
Mohammad Aziz as the head of the Federation and Brig Musrattullah
Khan as the secretary - may well have complicated matters. But team
manager Islahuddin Siddique, in charge of his third Olympic team
after Seoul in 1988 and Barcelona in 1992, argues that Sydney could
well turn things around: "Bad luck eluded us from achieving the
desired results in the past Olympics. This time, however, I am
confident we are going to win it." But grabbing a gold will be a tall
order for a side that lacks consistency and is without any star names
for the first time in many years. The state of hockey in Pakistan -
just like in neighboring India - is in the doldrums.-Dawn/Gemini News

Winter Test series: Pakistan offer to send cricket team to India

SHARJAH, Sept 7: Pakistan Cricket Board chief Tauqir Zia offered to
take his team on a tour of India if the Indian government did not
allow its national team to tour Pakistan. "Certainly I don't mind
taking my team to India, if invited, because I believe India and
Pakistan have to go together as far as cricket is concerned," Tauqir
told Reuters.

"But I am still optimistic that India will tour Pakistan from
December to February. "There is definite pressure on the Indian
government from the public and also the Indian cricket board is keen
to undertake the tour," he said after meeting his Indian counterpart
A.C. Muthiah.

Muthiah said: "The proposed tour is completely subject to clearance
from the Indian government. There is nothing that we can do to
salvage the tour". "If our government says yes we will go ahead with
the tour," he said.

He declined to comment on Tauqir's offer of taking his team to India,
saying: "With the current state of bilateral relations, the
government has its own view on the matter and the board has limited
choice. "If I say anything more, it might be misconstrued".

The Pakistan Cricket Board has asked India to finalize the tour
before the Sept 29 meeting of the Indian board.-Reuters

Indian probe report on match-fixing this month

NEW DELHI, Sept 8: An Indian federal probe into match-fixing and
corruption in cricket is likely to point fingers at several national
and overseas cricketers later this month, official sources said.

The probe by the Central Bureau of Investigation (CBI) is in addition
to the bombshell corruption charges leveled in April by the Delhi
Police against disgraced South African captain Hansie Cronje and
three of his teammates.

The CBI will submit an interim report on its probe, which is also
likely to list corruption charges against two English and three
Pakistani cricketers, a highly-placed source from the federal agency

"The report is to be submitted by September end and it will contain
an exhaustive picture of corruption in the game," he said without
disclosing the names of the players likely to be charged. -AFP

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