------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 07 April 2001 Issue : 07/14 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
We encourage comments & suggestions. We can be reached at:
e-mail dws-owner@dawn.com
WWW http://dawn.com/
fax +92(21) 568-3188 & 568-3801
mail DAWN Group of Newspapers
Haroon House, Karachi 74200, Pakistan
Please send all Editorials and Letters to the Editor at
letters@dawn.com
(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 2001
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
CONTENTS =================================================================== NATIONAL NEWS + SC orders retrial of Benazir, Asif + Mujahideen groups reject Indian offer for talks + India not serious for talks, says FO + Construction of fence to continue: India + Hangu still under curfew + President to get back dismissal powers: Amendments being drafted + Shaukat calls for IMF waivers + WB offers $100m for drought victims + Water shortage: Kharif target lowered + Masood seeks diplomatic pressure against Pakistan + Finance ministry aggravating crisis, says Wapda + Musharraf wants early PTCL sale-off + Pakistan, ADB to sign poverty reduction accord in November + CE orders big raise for govt employees: Proposal due next month --------------------------------- BUSINESS & ECONOMY + 10% hike in power tariff every year: Plan approved by Musharraf + Export finance rate up by 1.5pc: Subsidy to go on IMF demand + 15% GST imposed on pesticides, urea + Banks allowed to use FCY deposits freely + ST revenue grows by 28.56pc in July-March + PC asked to resolve its policy level issues soon + Pakistan to lose Rs2bn on petrol export + Oil industry wants rise in CNG prices + Rs268 billion taxes collected + 'Policy board' suggested for taxation strategy + WB to help develop private gas pipelines: Team due on 9th + Foreign banks show mixed performance + Gas price controversy and the fertilizer plants --------------------------------------- EDITORIALS & FEATURES + Are we stupid? Ardeshir Cowasjee + The Pakistani Sahib: only half there Ayaz Amir + Snakes & ladders, musical chairs Irfan Husain ----------- SPORTS + PCB portraying players as villains in sad scenario + Pakistan may hire foreign coach + Miandad humiliated for second time + Nur Khan urges PCB boss to accept rot and step down
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010407 ------------------------------------------------------------------- SC orders retrial of Benazir, Asif ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, April 6: The Supreme Court on Friday set aside corruption convictions awarded by the LHC's Ehtesab bench to Benazir Bhutto and Asif Zardari, and ordered a retrial of the case. In a short order, the seven-member bench accepted the appeals of Ms Bhutto and Mr Zardari against the 1999 conviction. The detailed judgment would be announced later. The former prime minister and the suspended senator had requested the apex court to acquit them honourably. Justice Bashir Jehangiri, presiding judge of the bench, announced the verdict at 10.50am: "Reason to be recorded later in the detailed judgment, we accept the appeals and set aside the impugned judgment recording conviction against and awarding sentences to the appellants, and send the case to a court of competent jurisdiction for retrial." On April 15, 1999, an Ehtesab bench consisting of Justice Malik Qayyum and Najmul Kazmi of the Lahore High Court had convicted Ms Bhutto and Mr Zardari. They were sentenced to undergo five years' simple imprisonment each, and pay $8.6 million fine each. The Ehtesab bench had ordered their disqualification as members of parliament for five years, and forfeiture of their property made with money acquired through corruption. The Ehtesab bench had held that the pre-shipment inspection contract to the Swiss company, SGS, had been awarded by the former prime minister "alone" at the behest and abetment with Mr Zardari. The prosecution case was that the contract had been awarded in consideration of 6 per cent commission of the total amount received by the SGS from the government of Pakistan. The prosecution had alleged that the commission had been paid to an offshore company, Bomer Finance Inc., owned by Mr Zardari through his fiduciary agent Jens Schlegelmilch. The ultimate beneficiaries of the commission were Mr Zardari and Ms Bhutto, according to prosecution. Farooq Hameed Naek, counsel for appellants, said after the judgment: "I am satisfied ... but not happy. I was expecting honourable acquittal but this is the court's judgment." The military government had inherited the case from the PML government and defended the judgment vehemently, spending over Rs10 million in legal fees and other expenses. The Supreme Court bench consisted of Justice Bashir Jehangiri, Justice Sheikh Riaz Ahmed, Justice Munir A. Sheikh, Justice Nazim Hussain Siddiqui, Justice Iftikhar Mohammad Chaudhry, Justice Qazi Mohammad Farooq, and Justice Abdul Hameed Dogar. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010407 ------------------------------------------------------------------- Mujahideen groups reject Indian offer for talks ------------------------------------------------------------------- SRINAGAR, April 6: Kashmiri Mujahideen rejected on Friday an Indian government invitation for a political dialogue, with one group even threatening violence against those entering into talks with New Delhi. India sought to lend fresh impetus on Thursday to its four- month old ceasefire in occupied Kashmir by inviting freedom fighters for talks on restoring peace to the troubled region. An official statement said that planning commission deputy chairman and former defence minister K.C. Pant would represent the government, but gave no details as to a venue or timeframe for the talks. The dominant Kashmir outfit, Hizbul Mujahideen, was quick to dismiss the invitation. "Such offers of bilateral talks have been made in the past, but proved to be just a bluff used by the Indians to hoodwink international opinion," Hizbul Mujahideen spokesman Salim Hashmi told AFP. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010407 ------------------------------------------------------------------- India not serious for talks, says FO ------------------------------------------------------------------- Hasan Akhtar ISLAMABAD, April 6: The foreign ministry has said India is not serious about a peaceful solution to the Kashmir dispute and persists in its efforts aimed at imposing a military solution in Jammu and Kashmir. Speaking at a press briefing here on Friday, foreign ministry spokesman Riaz M. Khan commented on a statement issued by the Indian government on April 5 about a "political dialogue with all sections of peace-loving people of Jammu and Kashmir". A statement read out by the spokesman said that the Indian claim for a political dialogue "demonstrates once again that it is not serious about a peaceful solution to the dispute and is refusing to address the basic requirements of a dialogue process. The statement shows that India is persisting in its efforts aimed at imposing a military solution in Kashmir, avoiding meaningful talks and misleading world opinion". Pakistan had outlined the requirements of the dialogue in its statement on Dec 2, 2000, asking India to stop repression in Kashmir, respond to Pakistan's (military) restraint, resume meaningful dialogue with Pakistan with the participation of the Kashmiri representatives, and for this purpose, help All Pakistan Hurriyat Conference leaders visit Islamabad for consultation, the statement added. Despite the Indian claim about non-initiation of combat operations against the Kashmiri people, the Indian forces had continued their terror campaign, shooting at unarmed civilian protesters and even at Muharrum processions, the statement observed. Pakistan had demanded that if India genuinely sought peace in Kashmir as it professed to do, it should abandon its policy of violence and state-terrorism against the Kashmiri people and massive violations of rights of the Kashmiri people, it said. "It must respond sincerely to Pakistan's proposal of December 2 for a settlement of the Kashmir dispute consistent with the aspirations of the Kashmiri people and in accordance with the UN Security Council resolutions," the statement concluded. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010404 ------------------------------------------------------------------- Construction of fence to continue: India ------------------------------------------------------------------- Monitoring Desk KARACHI, April 3: India asserted on Tuesday it would continue to erect "defensive structures" along the India-Pakistan boundary as it deemed necessary while rejecting Islamabad's description of it as a "working boundary." "The construction of defensive structures along the International Boundary in Jammu and Kashmir and in other sectors is undertaken by our security forces from time to time. The nature and type of structures is obviously based on security requirements," the external affairs ministry spokesman said. He was responding to questions about a statement issued by Pakistan last week. The spokesman said the term "working boundary" could not be applied to any part of the India-Pakistan boundary, including the boundary between Jammu and Kashmir and Pakistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- Hangu still under curfew ------------------------------------------------------------------- Correspondent HANGU, March 31: Hangu remained under curfew for the 31st day on Saturday as the district administration was busy demolishing the trenches on the hills surrounding the city. As the Aashura mourning draws near, law-enforcement agencies and army personnel have intensified patrolling the streets and roads to avert any untoward situation. Informed sources said that the Frontier Constabulary had been entrusted with the task of demolishing the trenches on the hills. The district administration officials said they could not afford taking any chance with the peace of the city. Any decision to lift or relax the curfew could be taken after the Aashura mourning was over, said the officials. Meanwhile, emergency has been declared in all hospitals in Hangu and leaves of doctors and paramedical staff have been cancelled. The Ashura procession will be taken out under the vigilance of the army. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- President to get back dismissal powers: Amendments being drafted ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, March 31: The government has decided to restore Article 58(2)(b), giving powers to president to dissolve the National Assembly and dismiss the government on recommendation of the National Security Council. Sources told Dawn that the chief executive, at the last cabinet meeting, had given broad outlines to his two legal experts, having extensive experience in drafting such laws, to prepare a draft for constitutional amendments. The government was also considering giving option to president that instead of dissolving the entire National Assembly, only the sitting government should be dismissed while the same assembly should be given another chance to elect a new leader of the house, the sources said. The president would use these powers in consultation with the National Security Council, consisting of seven members. Services chiefs would be its members by virtue of their offices, while the remaining four would be from civilian side "who can take a dispassionate view of the situation." The method of appointment for the civilians members would be spelled out in the Constitution, the sources added. "The amendments are definitely coming but not in near future, maybe few months before October 12, 2002," the source told Dawn. The power of appointment of services chiefs would again go back to the president, ostensibly to restore balance of power. The power to appoint services chief had been with the president since the restoration of democracy in 1985. However, it was transferred to the prime minister through 13th Amendment by the last National Assembly, the sources said. The military regime was also keen to repeal the 14th Amendment, allowing the members of parliament to speak out their mind without any fear of losing their seats. The government, the sources said, wanted that power should not concentrate in the hands of an individual, who could use it on his whims. The government, according to the sources, would not go outside the limits prescribed by the Supreme Court. Bringing back Article 58(2)(b) would not offend the judiciary as in one of its judgements (Mehmood Khan Achakzai case), the SC had termed the said amendment a "safety valve". The discretionary powers under 58(2)(b) were first used in 1988 by Gen Ziaul Haq, twice by President Ghulam Ishaq Khan and once by President Farooq Leghari. While granting powers to the chief executive to amend the constitution, the Supreme Court had held that no amendment should be made in derogation of federal structure of Pakistan, parliamentary form of government, independence of the judiciary and Islamic provisions of the Constitution, the sources added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- Shaukat calls for IMF waivers ------------------------------------------------------------------- Nasir Malick ISLAMABAD, March 31: Pakistan has requested the International Monetary Fund (IMF) to give four waivers on revenue generation and other such issues in order to complete the first review under the Stand-By Arrangement approved by the Fund's Executive Board. In a letter to the IMF, Finance Minister Shaukat Aziz said that a waiver be given on the performance criterion on the revenue of the Central Board of Revenue (CBR) at end-December 2000, a waiver of the structural performance criterion related to petroleum price adjustment on December 15, 2000, and modifications of the performance criteria on the CBR revenue and the net domestic assets (NDA) of the State Bank of Pakistan (SBP) for end-March 2001. "On the basis of the performance up to end-December 2000 and policies set out in the attached memorandum, the government requests that the completion of the first review be considered by the Executive Board of the Fund," the minister said in his letter. The minister said that Pakistan would provide the IMF with "such information as it may request in connection with Pakistan's progress in implementing the economic and financial policies and achieving the objectives of the programme". The government believes that the policies set out in the attached memorandum are adequate to achieve the objectives of the programme," he said. "However, it stands ready to take any additional measures appropriate for this purpose, and will consult the Fund in accordance with the policies of the Fund on such consultations." The memorandum of economic and financial policies attached with the letter reviews economic developments and policy implementation in the first half of fiscal year 2000/01 (July-December 2000), updates the macroeconomic framework, and discusses the stabilization policies and structural reform programme for the remaining period of the fiscal year. It updates and supplements the MEFP dated Nov 4, 2000. Informing the Fund about the macroeconomic performance in the first half of 2000-01, the minister said it was adversely affected by various factors. Lower-than-expected rainfalls have led to a small contraction in the production of cotton following the bumper crop of 1999/2000, and have weakened prospects foor the forthcoming wheat crop However, he said the government expected recovery in the industrial sector and expected a real GDP growth of 3.8 per cent for the year, compared to the target of 4.5 per cent. Inflation as measured by the average CPI during July 2000 to January 2001 picked up to only 4.9 per cent instead of the projected 5.4 per cent. He said during the first half of the current fiscal, the underlying external current account position was broadly in line with programme projections, with shortfalls in exports and larger profit transfers compensated by lower imports and higher worker remittances. Taking into account State Bank of Pakistan (SBP) purchases in the kerb market, the current account registered a significantly lower deficit than programmed. Official reserves (excluding FE25 foreign currency deposits and short-term swaps and forwards) at end-December 2000 amounted to $735 million, somewhat higher than the programme target. He said the consolidated government deficit (including grants) for the first half of 2000-01 amounted to 2.2 per cent of programmed annual GDP, 0.7 percentage points lower-than-programmed, with shortfalls in tax revenues more than compensated by higher-than- projected federal non tax revenue and stronger-than-envisaged expenditure restraint. On the revenue side, shortfalls in tax revenues, in the order of 0.4 per cent of annual GDP, were the result of shortfalls in CBR revenues (mainly in sales and income tax collections) and, to a lesser extent, in receipts from energy surcharges. Federal current spending was higher than anticipated due to higher subsidies on account of larger-than-programmed payments to Water and Power Development Authority (WAPDA) and wage spending (including military spending). He said structural reforms gained momentum in a number of areas and structural performance benchmarks and criteria were met, except that related to the adjustment in petroleum prices. "Domestic petroleum prices were adjusted on Dec 31, 2000, instead of Dec 15, 2000 to avoid socio-political stress during the Ramazan period. The price increases in the range of 7 per cent to 23 per cent exceeded the requirements implied by the agreed formula. Restructuring of the nationalized commercial banks continued with the closure of large numbers of unprofitable branches. In the trade area, the anti-dumping law was enacted in Dec 2000 thereby paving the way for abolishing regulatory duties discriminating against imports. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- WB offers $100m for drought victims ------------------------------------------------------------------- Reporter ISLAMABAD, March 31: The World Bank will provide $100 million emergency assistance to Pakistan to mitigate the effects of drought in the country. Senior Vice-President and Chief Economist of the World Bank, Nicholas Stern, who called on Chief Executive Gen Pervez Musharraf here on Saturday, assured him that the World Bank would offer $100 million to help remove the sufferings of the people that came in the wake of prolonged drought situation. Informed sources said that the chief executive was told that the amount of emergency assistance for drought could be more than $100 million as various details were still being worked out. Mr Stern said that since the government was trying to implement its reform agenda, international donors were sympathetically considering all possible support for Pakistan. However, sources said that the World Bank official called for protecting social sector's funding. The government last week slashed the current financial year's Public Sector Development Programme (PSDP) from Rs120 billion to Rs110 billion that came under sharp criticizm by the donors. During the meeting, sources said, Gen Musharraf briefed the visiting World Bank senior vice-president about his government's priorities. Reiterating that general elections would be held before October 2002, Gen Musharraf said that reducing debt burden and privatizing the state sector were priorities of his government on the economic front. Sources said the chief executive told Mr Stern that debt burden would be reduced in the light of the recommendations of the Debt Reduction and Management Committee (DRMC) specially by avoiding unnecessary foreign loans. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- Water shortage: Kharif target lowered ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, March 31: Federal Committee on Agriculture which met here on Saturday lowered Kharif crops targets because of the water shortage. The crops are cotton, sugar cane and rice. This was stated by Federal Minister for Food and Agriculture Khair Mohammad Junejo while briefing newsmen after the 74th meeting of the FCA. The agriculture minister said the meeting took stock of water situation in the Kharif season. He quoted the Irsa Chairman Mian Hafeezullah as telling the meeting that Irsa was expecting a minimum of 49 per cent and a maximum of 61 per cent shortage in the early Kharif season from April 1 to June 10. However, he said, an overall shortage of 17 per cent was expected in the entire Kharif season. The government, he said, was trying to shift as much area as possible from rice - a water intensive crop - to cotton. The government had already banned rice cultivation in some areas of Sindh and was planning to convert half of the irrigated area of Balochistan from rice cultivation to cotton, because of the water shortage, he added. Agriculture Development Bank of Pakistan had been asked to encourage cotton plantation by extending loans for the crop to the growers. Mr Junejo, however, said that the recent spell of rains had a very significant impact on the water level in the rivers. The inflow at Tarbela on March 29 was 19,700 cusecs and it had increased to 34,500 cusecs on March 31 after the rains, he said. Whatever water was available in Tarbela would be supplied to Sindh from April 1 to April 15, to facilitate cotton planting in southern parts of Sindh. The supply of agriculture inputs including seeds, fertilizers and pesticides were also reviewed at the meeting which noted with satisfaction that these were in ample supply. He said Pakistan would not import wheat this year as an estimated production of 17.5 million tons along with the carry over stocks of three million tons will be enough to meet domestic requirements of the country. The meeting, he said, downwardly revised the wheat production target from 20 million tons to 17.5 million tons. Punjab was expecting a total production of 14.23 million tons, Sindh 2 million tons and NWFP and Balochistan 0.73 million tons and 0.5 million tons, respectively, Mr. Junejo said. "These are very conservative estimates and we hope with the favourable temperatures in the coming week we will have better wheat production," Mr Junejo added. The FCA also evaluated the extent of damages caused by 40 per cent shortage of irrigation water during the Rabi crop. An amount of Rs95 billion had been lost because of the low production of all the main crops. The FCA set the target of cotton crop, sowing of which would begin from April 1 in southern Sindh. The target set for cotton was 8.66 million bales against the last year's production of 10.6 million bales, he said. Punjab had been given a target of producing seven million bales, half a million less than the last year's production. A target of 1.56 million bales had been set for Sindh against the production of 2.2 million bales in 1999-2000. Balochistan would contribute 0.1 million bales, he said. While reviewing sugar cane production the meeting noted that the area which came under sugar cane cultivation had been reduced considerably as compared to the last year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- Masood seeks diplomatic pressure against Pakistan ------------------------------------------------------------------- PARIS, April 4: Afghan opposition leader Ahmad Shah Masood made an impassioned plea on Wednesday for foreign aid in his war against the Taliban and called for diplomatic pressure against Taliban's backers in Pakistan. "Faced with the aggression of Pakistan, I give myself the right ... to seek aid everywhere," Mr Masood told a packed press conference here after a closed-door meeting with French Foreign Minister Hubert Vedrine. "What happened to the British (in the 19th century) and the Soviet Red Army will also happen to Pakistan," Mr Masood said. Mr Masood is on his first visit to Europe and on a rare foray from his bases in the snow-capped mountains of northeastern Afghanistan. During the 1980s, his battle against Soviet occupation earned him the title of "Lion of the Panjshir". He received a hero's welcome from Afghan opposition supporters cheering loudly as he entered the news conference. "Any help that countries can give us for reconquering our country, we need it," added the now-struggling commander, who has suffered a wave of setbacks but remains the sole serious obstacle to the Taliban's full control of Afghanistan. Accusing the Taliban of being directly propped up by Pakistan and Osama bin Laden, Mr Masood also warned the United States that "there will be no end to the current problems, which will only get worse" unless his fortunes were reversed. "To end the war, the international community must place strong pressure on Pakistan. This is what I raised with Mr Vedrine and what I will raise in all my meetings here," said Mr Masood. After Mr Vedrine's one-hour meeting with Mr Masood, the French foreign ministry issued a brief statement saying the current military and humanitarian situation in Afghanistan had been discussed, but no further details were given. Sources close to Mr Masood said the meeting with Mr Vedrine was "very positive", but declined to comment openly on whether subjects such as military or financial aid were broached. "The decision (on aid) rests with European deputies," a confident Mr Masood told the lively press conference in a plush Paris hotel. But the visit has been seen as a sign that the gloves have come off in Europe's diplomatic struggle with the Taliban, who have drawn global condemnation for their denial of women's rights and more recently their destruction of Afghanistan's ancient Buddhist statues in Bamiyan. The president of the European Parliament, Nicole Fontaine, who has invited Mr Masood to address the body on Thursday, also issued a call for European powers to provide more concrete support to the anti-Taliban movement. "It is important that France shows its support to the fight of those who, in Afghanistan, are opposing the fanatical Taliban regime," Mr Fontaine said. Mr Masood, a 49-year-old ethnic Tajik, is the vice-president and defence minister of the United Nations-recognized 'Islamic State of Afghanistan', but his forces wield control over just 10 per cent of Afghan soil. Mr Masood also met president of the national assembly, Socialist Raymond Forni, but officials confirmed he would not be meeting with President Jacques Chirac.-Agencies DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- Finance ministry aggravating crisis, says Wapda ------------------------------------------------------------------- Reporter ISLAMABAD, April 4: Faced with a shortfall of around Rs20 billion, Wapda has complained that the finance ministry is aggravating its financial crisis, sources in Wapda told Dawn. "It is frustrating to point out that the ministry of finance has not honoured its commitment from September, and instead of paying required funds in cash, it adjusted Rs1.34 billion against Wapda's debt service liability to the government of Pakistan," said a Wapda letter to the federal government. Wapda said the ministry also did not pay over Rs5.4 billion payable from January to June to it against the GST the Authority had paid to the Central Board of Revenue. "Non-payment of this amount has further aggravated the cash flow of Wapda," the utility pointed out. Wapda said it was directed last year to impose GST on some categories of consumers by adjusting the GST against its consumer- end tariff so as to insulate consumers from the additional impact of GST. Wapda was assured that the finance ministry would compensate the revenue loss through subvention in advance. Wapda had met its obligations towards revival of economy by allowing liberal incentives through tariff to productive sectors, accepting suspension/write-off of dues from the public sector and augmentation of water resources through Vision 2025, said the Authority. However, it pointed out, the other side had not fulfilled its commitments which has resulted in aggravating the financial crisis. "This would result in increasing the inter-corporate circular debt in the public sector, not to mention here that operational and development activities are likely to suffer in the coming months and slowing down the pace of development in mega development projects like the Ghazi Barotha Hydro Project," Wapda said. Wapda has paid over Rs41 billion this year for debt servicing, including Rs23 billion as DSL to the federal government and Rs17 billion as directly to the public sector. Another Rs81 billion was paid to independent power producers. Wapda also complained that after the settlement of its receivables since January 1, 1999, a meagre portion was paid in cash while Rs20.2 billion was adjusted against debt service liability to the government not taking into account that Wapda had cleared its dues to oil and gas companies and others in cash without injection of any additional cash from its past dues. Consequently, it became impossible for Wapda to meet its financial obligations to oil and gas companies and the IPPs, and finance its development programmes. Wapda's total revenues for 2000-01 have been projected at Rs185.5 billion against an expected expenditure of Rs201.5 billion, leaving a shortfall of Rs16 billion. "The estimated additional financial burden on account of settlement agreement with Hubco and Kapco is Rs5.8 billion which has to be paid during the current financial year. This settlement/MOU will have an impact on the capacity payment in future as well," wapda stated. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010403 ------------------------------------------------------------------- Musharraf wants early PTCL sale-off ------------------------------------------------------------------- ISLAMABAD, April 2: Chief Executive General Pervez Musharraf on Monday emphasized the need for continuity of effective and reliable operations of the telecommunications network and its future development. Besides national security the continued development of Information Technology (IT) should be ensured, said an official statement here. Gen Musharraf was presiding over a meeting held to review the privatization process of Pakistan Telecommunication Company Limited (PTCL). It also directed that the privatization process of PTCL should be pursued with vigour, determination and focus in the best national interest. Besides restructuring and reform of the telecommunications and IT sectors, various options for privatization of PTCL and the development of the IT sector were discussed. After extensive deliberations it was decided that the current privatization process of PTCL as proposed by the financial advisor, involving strategic sale of PTCL, should be carried to its logical conclusion. The meeting also highlighted the need for the development of credible and adequate regulatory and safety mechanisms to ensure the achievement of national objectives in the telecommunications, IT sectors, and the protection of consumer interests. While emphasizing the need for developing a strong enabling environment to generate greater investor confidence, the meeting reiterated the government's commitment and support for the privatization process. Among those who attended the meeting were Finance Minister, Shaukat Aziz, Minister for Privatization, Altaf M. Saleem, Minister for Science and Technology, Dr Atta-ur-Rahman, Minister for Commerce, Industries & Production, Razzak Dawood and, senior civil and military officers. -APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010403 ------------------------------------------------------------------- Pakistan, ADB to sign poverty reduction accord in November ------------------------------------------------------------------- By Jawaid Bokhari KARACHI, April 2: The Asian Development Bank (ADB) will sign a partnership agreement with Pakistan on poverty reduction in October or November. The ADB is currently engaged in completing the country's poverty profile and analysis. It is also holding a dialogue with stakeholders. The dialogue will be followed by a high-level forum on poverty reduction in Islamabad on April 23. The forum, to be organized by the government, will bring together stakeholders from the government, civic society, the private sector and communities engaged in development work. The discussions will focus on strategic choices for poverty reduction, assist the government in shaping its anti-poverty strategy and help foreign lending agencies identify their roles in implementation. Explaining the bank's strategy, ADB officials said the partnership agreement would be designed in such a manner that the bank would share not only the laurels for the success of the poverty reduction plan but also the responsibility for any failures. Expressing concern over rising poverty level in Pakistan, M. Ali Shah, ADB resident representative, observed "clearly, an unacceptable proposition for development practitioners". He said that though the estimates varied and depended on the measurement methodology used for determining poverty levels, there was an agreement that 33 to 40 per cent of the population suffered from dire poverty. Speaking at a tripartite dialogue attended by representatives of the government, members of civic society and ADB officials here on Monday, Naved Hamid, ADB senior economic adviser, spelled out the bank's strategy to reduce poverty. He said the ADB saw three elements in any framework for poverty reduction: sustainable economic growth, social development and sound macro- economic management and good governance. The Sindh minister for finance, Dr Abdul Hafeez Sheikh, who presided over the opening session of provincial consultations of the poverty reduction programme, said a survey had disclosed that 82 per cent of the population in the five districts of Sindh earned less than one dollar a day. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010404 ------------------------------------------------------------------- CE orders big raise for govt employees: Proposal due next month ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, April 3: The chief executive, Gen Pervez Musharraf, on Tuesday directed the Pay and Pension Committee (PPC) to propose "considerable increase" in the salaries of the government employees. The directive came during a briefing given to the CE by the finance division officials about preliminary recommendations of the PPC headed by Secretary-General Moeen Afzal. Gen Musharraf observed that the salaried class had been hit hard by the price hike. He said he had been told that inflation was in single digit but still, he added, the salaried and middle classes were facing difficulties to manage their affairs. Reports suggest that the PPC is in favour of a 50 per cent raise. According to some other reports, a 20 to 25 increase can be possible. However, Finance Minister Shaukat Aziz told reporters the other day that no final decision had been taken yet and that everybody should wait for the final report of the PPC. The PPC has been deliberating since December and is expected to complete the job by May. The PPC was given broad guidelines by the chief executive on some critical aspects of its work. As a consequence, the PPC would continue to work for finalizing its recommendations in the light of those guidelines and focus on the twin objectives of enabling the government to recruit the right quality of personnel at affordable salaries. "It is expected that the committee will proceed to finalize its recommendations so that these can be considered by the cabinet at the budget time," says a handout. It clarified that no firm recommendation had been worked out yet and that any speculation in this respect was misleading. Sources said that the implementation of the recommendations of the PPC largely depended on the performance of the CBR during the remaining four months of the current fiscal. In case, the CBR succeeded in collecting Rs60 to Rs70 billion as has been planned, the government would be able to offer a considerable raise to its employees. Generally, sources said, there was despondency in the government employees as they have not received any increase in their salaries since 1994, while inflation continued to rise during this period. Sources said that since the government had already cut the size of its Public Sector Development Programme from Rs120 billion to Rs110 billion, there was hardly any room to manage more resources, particularly to give any raise. The World Bank and IMF are generally advising the government to tap new resources before offering any raise to its employees.
BUSINESS & ECONOMY 20010403 ------------------------------------------------------------------- 10% hike in power tariff every year: Plan approved by Musharraf ------------------------------------------------------------------- Khaleeq Kiani ISLAMABAD, April 2: The government has decided to introduce an inflation-based automatic tariff system to ensure additional finances to power operators for development of the sector. Under the new system, at least 10 per cent increase in electricity tariff will take place every year notwithstanding the existing fuel-based quarterly automatic tariff adjustments and structural increases. A decision to this effect has been conveyed to the National Electric Power Regulatory Authority in a set of guidelines approved by the chief executive in accordance with a matrix agreed with the World Bank. The guidelines were finalized by the representatives of the water and power ministry, cabinet division, and planning and development division on Friday as the WB wanted them to have been issued by Saturday, Nepra sources told Dawn. The new system would reduce the role of the regulator as most of the tariff changes would take place automatically. It would, apparently, undermine the integrity and independence of Nepra which was set up as an independent body, sources said. "Nepra will review within the next six months the scope for introducing automatic and predictable mechanisms for setting electricity tariffs, minimizing extensive interactions with the regulator or other agencies to a bare minimum, and introducing multi-year tariffs. Specifically, Nepra's rules for tariff setting will be revised over the next six months to allow for formula-based tariff setting, automatic mechanisms for the pass through of legitimate costs which are beyond the control of the operating entities, and introducing multi-year tariff mechanisms," said these guidelines. However, while Nepra has been asked to introduce new tariff setting system within six months, the government wants the theft of electricity "to be reduced over a reasonable time-frame". Already, many consumers have complained about high-speed meters on their premises but there is no independent and above board laboratory that can verify the speed. Meters are always checked by the laboratories of Wapda and KESC against whom the consumers complain. Sources said that existing electricity tariff for life-line consumers would be maintained for the time being and "Nepra will determine the rate of increase in line with overall inflation." The implicit subsidy to residential consumers resulting from this policy decision would be borne by other slabs of residential consumers. However, "cost of service" would be the overall principle for determining the tariff. The government has noted that below-the- cost-of-supply tariff currently being given to the agriculture sector has led to inefficiencies in the water used at the farm level. Nepra would develop a programme over the next five years for aligning the tariff duly reflecting the cost of supply. In case, the federal, provincial or local government wished to provide further incentives to its agriculture sector, those subsidies would be provided directly by the concerned government. Moreover, a Universal Service Obligation Fund is intended to be created to provide support through social subsidies for financially unsustainable areas, including the village electrification. The government and the World Bank believe that these measures will bring in much-needed managerial expertise and technology, and mobilize additional finances for the development of the sector. Unless this is done, private investors would be reluctant to invest in the power sector in the absence of a stable regulatory environment and policy framework. The measure would ensure predictability and transparency of the process for setting electricity tariffs, and the degrees of interaction with the regulatory authority or other institutions required for complying with regulatory requirements as well as the extent of discretion which is allowed to regulators in matters such as tariff setting, the guidelines stated. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- Export finance rate up by 1.5%: Subsidy to go on IMF demand ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, March 31: The State Bank has enhanced export finance rate from 9 to 10.5 per cent to meet a key condition of the $596 million IMF standby credit. This is the second upward revision in export finance rate within two and a half months: on January 16 SBP had raised the rate from 8 to 9 per cent as the first step toward eliminating subsidy on export finance as asked by the IMF. SBP said in a circular on Saturday that exporters of locally manufactured machinery would also get export finance at 10.5 per cent instead of 9 per cent. The circular said export finance rate for exporters of bleached or unbleached cloth had been enhanced from 11 to 12.5 per cent. It said new export finance rates would be effective from April 1. The decision of hiking export finance rates by one and a half per cent invited spontaneous criticism from exporters who said it would hurt exports growth. "The IMF conditionalities are hitting the private sector. The increase in export finance rate would seriously hurt exporters," said chairman of All Pakistan Textile Mills Association Abid Farooq. "When export finance rate was first enhanced (in January) we were given to understand that overall lending rates would come down but that has not happened," said Farooq when reached by Dawn over telephone for his comments. "Now we can hardly see total exports of nine billion dollars this year," he said. Pakistan set an ambitious $10 billion export target for fiscal (July-June) 2000-01 but its exports valued only around six billion dollars in the first eight months. That forced the economic managers to say they now expect total exports to reach $9.2-$9.4 billion mark. Businessmen say an economic slowdown in two major trading partners of Pakistan i.e. the US and Japan; a water crisis in the country and rising interest rates may keep exports even below this mark. "Now our exports may not even touch nine billion dollar mark," says a former chairman of SITE Association of Industry Majyd Aziz. "The increase in export finance is like another nail in the coffin. It would hurt the private sector in a big way," said Aziz when reached by Dawn over telephone. He said the decision would take away whatever small advantage Pakistani exporters had over their competitors in world market. "Exporters are already cash- strapped- thanks to blocking of their sales tax and duty drawback refunds. The increase in export finance rate would only aggravate their problems," he remarked. Meanwhile, the SBP circular issued to notify increase in export finance rates announced half a per cent cut in the margin for the banks on export finance business. The circular said whereas banks would charge 10.5 per cent markup on export finance they would obtain refinance from SBP at 9 per cent. That is their own margin would be 1.5 per cent down from 2 per cent previously when they were giving export finance to borrowers at 9 per cent and getting refinance from SBP at 7 per cent. The circular said half a per cent cut in the margin would also apply in case of export finance to exporters of bleached or unbleached cloth. Now banks would get refinance from SBP at 11 per cent in case of export financing to exporters of bleached or unbleached cloth at 12.5 per cent. Earlier the rate of export finance for exporters of bleached or unbleached cloth was 11 per cent and the rate of refinance was 9 per cent. Under the terms of $596 million IMF standby credit the State Bank is to eliminate subsidy on export finance rate and make it market oriented by the end of this fiscal year in June. SBP has so far raised export finance rate by a cumulative two and a half per cent since mid-January. The formula given by the Fund for determining market-based rate for export finance rate envisages a rate calculated after adding 1.5 per cent above weighted average yield on six month treasury bills in the last quarter. Exact weighted average yield on six month T-bills in January -March quarter is not known. But if it works out to be more than nine per cent it would mean the Fund has relaxed the formula for market- driven export finance rates. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- 15% GST imposed on pesticides, urea ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, March 31: The government on Saturday announced imposition of 15 per cent General Sales Tax (GST) on pesticides and urea in order to implement one of the remaining conditions of the IMF. "Initially, this GST has been levied on pesticides and urea, which will be effective from tomorrow (April 1)," said Finance Minister Shaukat Aziz. Speaking at a news conference here on Saturday, he said the agricultural inputs like pesticides and urea could not be left out of the GST net. The finance minister, however, admitted that since pesticides were imported, their price would increase due to this new decision. "But there would be no increase in the price of urea," he assured. He said the government has got an undertaking from the owners of the urea factories that they would not increase the price of their products. The finance minister said Pakistan's foreign exchange reserves have increased to $1.4 billion after the disbursement of the second tranche of $133 million by the IMF on Friday, out of $596 million Standby Arrangement (SBA). The $1.4 billion amount also included $900 million cash and $540 million of the foreign currency depositors, he added. He said Pakistan had repaid $250 million during the last ten days. The finance minister claimed that Pakistan has now fulfilled the performance criteria to secure the third tranche. "Except revenues whose details of March are still to come, we have fulfilled performance as well financial criteria for the third quarter of 2000-2001," he said. Shaukat Aziz said the government was now planning to discuss Poverty Reduction Growth Facility (PRGF) for which he would leave for Washington on April 27 to hold talks with the IMF and the WB authorities. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010401 ------------------------------------------------------------------- Banks allowed to use FCY deposits freely ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, March 31: The State Bank has permitted banks and non- bank financial institutions to use fresh foreign currency deposits freely for lending or investment in or outside Pakistan from April 2. But the central bank has made it mandatory for banks and NBFIs to maintain 25 per cent of their total fresh foreign currency deposits with SBP as cash reserves in dollars. The SBP told banks and NBFIs on Saturday that they would earn no return on five per cent cash reserves but on the remaining 20 per cent special cash reserves they would get a return as determined by SBP on monthly basis. The central bank said its exchange and debt management department would notify the rates of return at the end of every month which would be effective for next month. The SBP circular issued to notify freeing up of fresh foreign currency deposits did not say how much return banks would get on 20 per cent special cash reserves in April. But a separate letter issued to banks and NBFIs said that they would get 3.50 and 3.75 per cent return on one month and three month placement of fresh foreign currency deposits with SBP in April. It said one week deposits would earn 3.25 per cent. The State Bank allowed banks to open fresh foreign currency accounts in June 1998 after freezing $11 billion worth of then existing foreign currency accounts on May 28 in the wake of nuclear explosions. But a year later in June 1999 it stopped all banks and NBFIs to use fresh foreign currency deposits abroad and permitted them to use them in the local market or place them with SBP. It also asked banks to cap their holding of fresh foreign currency deposits abroad at the level of June 3 1999. Since then banks and NBFIs started placing bulk of their fresh foreign currency deposits with the central bank as they had no avenue open for employing them in the local market. Some banks, however, got special permission from SBP to keep these deposits abroad. Upto March 31 banks had about $545 million of fresh foreign currency deposits placed with SBP: the amount held abroad is not known but bankers say total fresh foreign currency deposits are not less than $1.2 billion. They say keeping a 25 per cent cash and special cash reserves on the total deposits means that $300 million out of total $545 million worth of fresh foreign currency deposits would still remain with SBP. That indeed would be a great source of satisfaction for the central bank that has only $888 million worth of net foreign exchange reserves -barely enough to foot Pakistan's import bill of three weeks. The State Bank has been so short of foreign exchange that it had to purchase more than $1.3 billion from the open currency market in the first nine months of this fiscal year i.e. between July 2000 and March 2001. In fiscal (July-June) 1999-00 it had purchased $1.6 billion from kerb. The State Bank circular on cash reserve requirement on fresh foreign currency deposits says if banks or NBFIs fail to keep five per cent cash reserves and 20 per cent special cash reserves on the total deposits, the central bank would fine them according to banking rules. The circular also advises banks and NBFIs to start reporting the reserves position in their respective weekly statements from the first week of April. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- ST revenue grows by 28.56% in July-March ------------------------------------------------------------------- Parvaiz Ishfaq Rana KARACHI, April 4: A sustained growth at 28.56 per cent in sales tax collection had been recorded during first three quarters (July- March) of present fiscal. A higher collection has been due to a rise in number of taxpayers as well as stringent audit, official sources said. The sales tax collectorates (East and West), Karachi, had collected Rs20.148 billion during in nine months as against Rs15.671 billion, made in the corresponding period of last fiscal. The factors contributed towards higher ST collection were attributed by officials, to remarkable rise in number of taxpayers and exceptionally good results achieved out of audit of large number of business and industrial establishments. "We had been inter-acting with trade bodies at a very high frequency which assisted us in enhancing the number of registered persons/companies," a high official of ST collectorate said. During the period under review such sector like clubs, gymkhanas, marriage halls as well as media and advertising companies came under tax net and a substantial defaulted or non-payments of tax amounts were detected from them, he added. The sales tax collection of both the collectorates during the month of August 2000, was the highest at Rs2.341 billion or 115 per cent more than the corresponding period last fiscal. But it was surprising that ST collection during the out-going month of March 2001, recorded a fall at Rs1.944 billion as against Rs2.006 billion collected in the same period last fiscal. According to other details the Sales Tax Collectorate (East), had made 34.31 per cent higher collection during the first three quarters of current fiscal over the corresponding period of last year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- PC asked to resolve its policy level issues soon ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, April 4: The Privatization Commission has been asked by the higher authorities to urgently resolve its policy level issues due to which the disinvestment process still looked stalled. The PC was told that there were significant problems and policy issues which needed to be resolved speedily if the opportunities that privatization offered for relieving the balance of payment constrains, improving economic efficiency and stimulating both domestic and foreign private investment were to be reasonable exploited. The commission has particularly been asked to dismantle Gas Price Agreement of Pakistan Petroleum Limited (PPL) and raising its well- head prices to the levels facing private gas producers. Informed sources said that the officials of the chief executive secretariat and the ministry of finance have agreed with the Debt Reduction and Management Committee (DRMC) that there was a need to give firm commitment to full gas price deregulation over the next three years. Any subsidies to consumers should come from the budget. To minimize the budgetary impact, this requires raising the average gas price by about 50 per cent in real term over 3 years. The committee believed that the producer and consumer price adjustments were necessary not only for speedy privatization but also for accelerated gas development and more rational use of energy, factors which can make a powerful contribution to the balance of payment improvement. Also it was agreed that there was a need for a clear and unequivocal commitments to privatization of Pakistan Telecommunication Company limited (PTCL) and Oil and Gas Development Corporation Limited (OGDCL) and overcoming the resistance of management and labour with a firm hand. The PC was urged to strengthen the regulatory framework for telecommunication, power, and gas, establish the regulatory agency for petroleum, and staffing regulatory agencies with competent people who were supportive of private participation in their sectors. It was agreed with the debt committee to resolve some tax issues affecting the banking industry that were hampering the sale of Habib Bank Limited (HBL) and the United Bank Limited (UBL), increasing the flexibility of banks to shut down branches and permitting majority foreign ownership of banks. The medium term programme drawn up by the Privatization Commission for next three years have been appreciated which focussed on the sale of major assets in telecommunications, oil and gas, power and banking sector including giants of PTCL, PPL, OGDC, Pakistan State Oil( PSO), Karachi Electricity Supply Company (KESC), HBL and UBL. The debt committee believed that the accelerated privatization was absolutely essential for tiding over the current payment crisis, though the overall contribution of privatization revenues to debt retirement will be modest. It will have important signalling value for the role of the private sector and will generate confidence. Similarly, it will help reduce the losses of public sector corporations, which have contributed to public debt build up in the past. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- Pakistan to lose Rs2 billion on petrol export ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, April 4: Pakistan would lose around two billion rupees in one year on the export of 300,000 metric ton of petrol at the rate of Rs10.97 per litre, sources said. Pakistan-Arab Refinery (Parco) which accepted bids for the export of 300,000 tons of surplus petrol at the rate of $240 per metric ton, is running on an annual subsidy of over Rs4 billion and the figure goes beyond Rs7 billion if hidden subsidies are included in it. Experts believe that exporting the motor spirit at a lower rate is double loss to the country which is producing it by offering huge subsidy and then exporting it at the price lower than its production cost. They say that instead of exporting the motor spirit at the lower price, the government can market the product by slashing its taxes, which will be incentive for motorists to use the motor spirit instead of the Compressed Natural Gas (CNG). The government is encouraging the use of natural gas as vehicle fuel and at present over 100,000 cars and pick-ups have been converted to the CNG. According to official figures, ex-refinery price of Parco motor spirit is Rs14.46 per litre. For exporting, it will have to pay around Rs2 per litre on the transportation of the product from the mid-country refinery in Mehmood Kot to Karachi. In the local market, the government is selling one litre of motor spirit for Rs30 as against Rs10.97 per litre on which it is being exported. After the commissioning of Parco, Pakistan was looking for a buyer for motor spirit and held negotiations with Iran which is already surplus in the production of motor spirit. Iranian motor spirit is available in most parts of Balochistan for Rs13 per litre. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- Oil industry wants rise in CNG prices ------------------------------------------------------------------- Khaleeq Kiani ISLAMABAD, April 4: Oil industry has asked the government to increase the prices of compressed natural gas (CNG) with a view to arresting a growing fall in the consumption of petrol, official sources told Dawn. The CNG industry and the directorate of gas have opposed the move by the Oil Companies' Advisory Committee (OCAC) on the grounds that gas tariff for the industrial sector, including the CNG, was uniform and could not be changed to the disadvantage of an individual sector. On the other hand, they have proposed that the oil industry should compete the CNG sector by reducing its profit margin. The government had increased gas prices by an average 15 per cent for all consumer groups, including the CNG, last month and it was in no mood to put an additional burden on the CNG consumers in the near future, sources in the petroleum ministry said. OCAC, the umbrella organization of major oil marketing and refining companies, informed the petroleum ministry that cheap CNG rates had resulted in a large-scale conversion of vehicles from petrol to gas. OCAC said this had not only reduced gasoline consumption and the rate of return to oil refining and marketing companies but had also created problems due to surplus gasoline. There is only 15 per cent GST on natural gas, including the CNG, while the government collects around 52pc taxation on petrol. In other words, the taxation share in Rs30 per litre petrol is Rs17. The government policy to promote the CNG as a pollution-free and cheaper fuel has resulted in conversion of around 150,000 vehicles to the CNG. Sources said that a German oil firm was ready to purchase surplus petrol from PARCO and was expected to lift a couple of lots of 10,000 tons of petrol from the Karachi port by the mid May. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- Rs268bn taxes collected ------------------------------------------------------------------- Reporter ISLAMABAD, April 4: The government has collected about Rs268 billion in taxes in the first nine months of the current fiscal year, according to preliminary unofficial estimates compiled by the CBR. These estimates place the collection of sales tax during the period at Rs107 billion, income tax at Rs83 billion, customs duties at Rs43 billion and excise duties at Rs35 billion. The full year collection target for ST and IT is Rs280 billion and by March, the two heads were to collectively contribute Rs210 billion but the actual collection of sales and income taxes had remained around Rs190 billion in the first nine months. Both the sales tax and income tax departments are said to have failed in meeting their targets in the July-March period of the current financial year because of the deepening slump in the market. The total estimated tax collection of Rs268 billion is about Rs150 billion short of the projected collection of Rs417 billion for the year. In order to achieve the whole year target by end-June, the CBR would need to collect taxes in the next three months at the rate of Rs50 billion a month on an average against Rs30 billion it had been collecting on an average every month in the last nine months. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010403 ------------------------------------------------------------------- 'Policy board' suggested for taxation strategy ------------------------------------------------------------------- Ihtasham ul Haque ISLAMABAD, April 2: The task force on tax administration has suggested the government to set up a "policy board" to be headed by the finance minister for formulating tax policy and providing the strategic direction for its implementation. The task force has finalized its recommendations, which would be submitted to the chief executive within next 10 days time in order to substantially increase revenues and plug leakages. The policy board would comprise members from private and public sectors. According to the details collected by Dawn on Monday, the task force also proposed converting the Central Board of Revenue (CBR) into an autonomous Pakistan Revenue Authority (PRA) to be created under an appropriate legislative framework. The authority would function under the administrative control of the finance ministry. It would comprise a chairman as its chief executive with one or more vice chairmen and several members to handle specialized revenue functions. The authority would be responsible for implementing policies given by the policy board. It would exercise complete financial and administrative autonomy in all matters concerning implementation of the taxation measures taken by the government. It would have the freedom of recruitment of personnel, separation of efficient and honest from inefficient and corrupt, develop and maintain its physical infrastructure, hire consultants for functions which the authority could not perform within itself, and the flexibility in determining compensation to such consultants. The authority would be responsible to the government for collecting the revenues as agreed at the beginning of each year. The authority would only be engaged in tax policy implementation and not involve itself into public dialogue as regards their viability or otherwise. The government would constitute the policy board and appoint its members for a tenure of two years. The board may comprise primarily secretaries of finance, industries, commerce, information technology, Board of Investment (BoI) and chairman PRA. Presidents of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Overseas Chamber of Commerce and Industry, ICAP and Pakistan Tax Bar may also be considered for members of the policy board. The chairman PRA would act as its secretary. The board would be assisted by PRA's chairman and members in its work. Based on the broad economic considerations, tax policy inputs/analyses from the authority and private sector interventions, the policy board would formulate taxation policies subject to government approvals. It is suggested that the PRA chairman many be appointed for a term of three to five years to ensure continuity and security of tenure. The chairman would have full financial and administrative autonomy as was necessary for performing his functions as the chief executive of the authority. Each year, he would submit comprehensive performance report both to the policy board and the government. Members of the Authority would generally be selected from among the officers of Pakistan Revenue Service(PRA). For specialized functions such as human resource development, information management system, audit, legal, public relations and tax payers assistance, appropriate persons from the private sector may be recruited as members. "It is proposed that the present institutions of director general customs intelligence, director generals of inspection and audit and director general enquiries may be abolished," the task force recommended. The post of DG customs intelligence is redundant because most of the anti-smuggling activities were carried out by the para-military forces. The work of DG inspections would be looked after by the member audit and inspection. Similarly, member administration and finance would beresponsible for enquiries against the corrupt and inefficient tax officials. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010404 ------------------------------------------------------------------- WB to help develop private gas pipelines: Team due on 9th ------------------------------------------------------------------- Khaleeq Kiani ISLAMABAD, April 3: The World Bank will assist Pakistan in developing private sector gas pipelines through multinational energy firms and international financiers to link its power and industrial sector with the untapped gas reserves. The World Bank (IBRD) sources told Dawn on Tuesday that a four- member energy mission of the bank would visit Pakistan for 10 days (from April 9 to 20) to hold discussions with the local gas companies, international oil companies, power utilities and financial institutions. The mission, comprising Marc Heitner, Waqar Haider, Rashid Aziz and Ralph G. Schwimmbeck, will look into measures to improve the pipelines in private sector and to develop the necessary policy framework including issues relating to Gas Regulatory Authority (GRA). In a letter to secretary petroleum, Tjaarda P. Storm van Leeuwen, the head of IBRD's energy sector unit for South Asia appreciated Pakistan's measures during the last 18 months in the oil and gas sector. He hoped that "the remaining agenda will be implemented over the next three years or so as announced at the Pakistan Development Forum" meeting last month in Islamabad. The bank noted that infrastructure bottlenecks, particularly gas pipelines prevent Pakistan from taking full advantage of its recent gas discoveries and to substitute for fuel oil, which is imported at a relatively high cost for use in thermal power plants. "While it will take some more time to restructure and privatize Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGC), one way of accelerating development is to introduce the concept of private gas pipelines into Pakistan, preferably in such a way that the government is not bearing the commercial risks", the letter said. The ministry of petroleum and natural resources had already evinced great interest in possible private sector investments in gas pipelines and related infrastructure and requested the bank for assistance in developing the necessary policy framework. Sources said the mission would suggest measures to optimally introduce private pipelines and policy changes. Besides ministers and officials, the mission will hold talks with heads of all local and international oil and gas companies operating in Pakistan, chairman of Wapda Lt-Gen Zulfiqar Ali Khan and chiefs of IPPs. Heads of Citibank Pakistan, J.P Morgan, ABN- Amro will also be involved in these deliberations. Pakistan has discovered around six to eight trillion cubic feet (TCF) of natural gas reserves in the recent three years. A couple of new gas fields have already been developed but could not be linked to the gas transmission system due to lack of infrastructure facilities. The government has recently approved around Rs20 billion development programme, to be implemented by the SNGPL and the SSGC, but most of the power plants are still running on the high cost furnace oil as independent gas pipelines from gas fields to thermal power stations could not be developed. Pakistan's fuel-based annual import bill currently stands in the region of $2.5 to $3 billion, of which around $800 million worth of furnace oil is consumed by thermal power stations. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010404 ------------------------------------------------------------------- Foreign banks show mixed performance ------------------------------------------------------------------- Jawaid Bokhari KARACHI, April 3: The performance of foreign banks indicated a mixed trend during 2000, in a period marked by cautious lending, focus on retail banking and local currency deposit mobilization. Of the 15 foreign banks including one incorporated in Pakistan with major Arab stakes, whose balancesheets have been made public, four posted losses and 11 recorded after-tax profits. In 1999, the comparable number of loss-making foreign banks was five. The non-performing loans (NPL) of these 15 banks amounted to Rs5.4 billion at the closing of 2000. The major amounts of NPL were shared by Faysal (Rs1,472 million), Citibank (Rs1,006 million) Standard Chartered Grindlays (Rs810 million) and Standard Chartered (Rs485 million). Three banks, ABN-AMRO, Habib Bank AG Zurich and IFIC, improved their after-tax profits and an equal number succeeded in converting losses of 1999 into profits in the year under review. These are Citibank, Faysal Bank and American Express. Faysal is incorporated in Pakistan with major foreign stakes. The profits of five leading European and Arab banks plummeted in 2000 when compared to 1999. These were: Standard Chartered, Standard Chartered Grindlays, Credit Agricole Indo-Suez, Mashreq and Emirates. Deutsche and Hongkong Shanghai went into red. In 1999, they made profits. Bank of Oman reported losses for the second year whereas Societe Generale was able to reduce its losses. With the closing down of the operations of the Bank of America and Trust Bank, foreign bank branches were reduced by seven. Since foreign banks cater to first-tier borrowers, multinationals and reputable domestic corporates, their branch network is not of much importance for lending purposes. A large branch network, however, helps attract deposits which increases liquidity for funding corporate sector. Nationalized commercial banks have been able to attract multinationals, because of much bigger resources mobilized through large branch network. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010407 ------------------------------------------------------------------- Gas price controversy and the fertilizer plants ------------------------------------------------------------------- Jawaid Bokhari KARACHI, April 6: Producers want subsidy on gas for the existing fertilizer industry to go. They are opposed to such policy which unduly tilts towards one sector at the cost of another. And if government wants to give subsidy to new fertilizer plants, it should do so at its own cost. The management of Mari Gas Company Limited (MGCL) has also taken an exception to the official move of dedicating Mari gas field to the fertilizer industry which, it said, will be detrimental to the growth of the company's business and will restrict its contribution to the national economy. Lt Gen Khalid Nawaz Malik (rtd), MGCL Managing Director told the government that the Fertilizer Policy 1989, had resulted in creation of a monopolistic cartel of fertilizer producers, to whom gas was being sold at unrealistically depressed prices. MGCL provides gas to 5 plants of Fauji Fertilizer, Pak-Saudi Fertilizer and Engro Chemicals at abnormally low rates. An amount of Rs39 billion have been given to these companies as subsidy during 1993-2000. On the other hand, MCGL is faced with paucity of funds and has suffered stagnation. The general has pointed out that rates fixed for existing plants, set up under the Fertilizer Policy 1989, should continue to apply for the stipulated period from the date of the first delivery of gas to these plants. Thereafter, these should be treated at par with pre-1989 policy plants. If the government wants to provide concessions/incentives for the new plants under 2001 Fertilizer Policy, it should be in the shape of concessions in duties and taxes instead of subsidized rates. Gas has alternate uses which can benefit the economy in much better way compared to its use by the fertilizer industry. The draft of new policy provides that the gas supply agreement will be for a period of ten years, extendible, by another ten years. Such strict terms should not be imposed on companies and they be allowed to maintain commercial independence. The MGLC has proposed gas supply agreement should be for an initial period of ten years, and extendible for ten more years, subject to mutual agreement between the parties as to quantity and price of gas.Back to the top
EDITORIALS & FEATURES 20010401 ------------------------------------------------------------------- Are we stupid? ------------------------------------------------------------------- Ardeshir Cowasjee HOW many of us would answer 'yes' without a second thought? How many would be angered by the question? How many would vehemently shoot it down with a negative? What we all do know is the fact that there are many press people on the payroll of our governments (any and all governments) who will report as directed on any manifestly incorrect government stance. Some of the payroll lot have been given awards -- medals and cash. Some have crawled out from the shadow of their mentors and been roughed up or incarcerated. Our governments are and will remain weak, under suspicion, and the game will continue until Kingdom Come. As reported on March 28, the chief reporter of 'The News', Shakil Shaikh, was picked up at gun point in broad daylight in the vicinity of Islamabad's main commercial centre. Armed men in a high-powered jeep, with no number plates, followed his car, forcibly stopped him on the Kashmir Highway near the Margalla Hotel, dragged him out of the car, covered his head, tied his hands, threw him into their jeep and beat him up. These unidentified men then drove him to a deserted area near the Soan Garden Housing Scheme and, reportedly, continued thrashing him for three hours. The kidnappers repeatedly told him 'You write too much. Now you will not write any more.' They threatened to kidnap his wife, children and parents were he not to change his 'attitude' (the 'attitude' was not specified). 'We are kamis (servants) and ranghars (members of a Punjabi tribe)', was how the attackers described themselves. They took his two mobile cell phones, his tape recorder and his wallet. They left him in the woods to lick his wounds. He later found his own car parked nearby, drove himself home, and was then taken to PIMS for treatment. The editor of 'The News' and Shakil's fellow press people have naturally strongly condemned the attack, demanded an enquiry, and the arrest of the culprits. They have described the incident as a 'blatant attack on the freedom of the press' and have lodged a report at the Secretariat police station. Interior Secretary Tasneem Noorani has 'condemned' the incident and made the usual official noises about taking all possible measures to trace the assailants. The Chief of Staff to the COAS, Lt General Ghulam Ahmed Khan has enquired after Shakil9s health, as has Federal Information Secretary Syed Anwar Mahmood. The Principal Information Officer, Ashiq Gondal, visited him in hospital. The whole tone of the incident suggests that it could possibly be the doing of one of the many 'agencies' with orders not necessarily having emanated from on high, or even halfway up. The ever vigilant New York based Committee for the Protection of Journalists (CPJ) has picked up the news item and issued a statement on March 30 urging the Chief Executive to publicly declare that his administration would not allow journalists to be attacked with impunity by ensuring that the men who brutalized Shakil Shaikh be brought to justice. The CPJ has appealed to the military authorities to apprehend and prosecute the assailants 'who clearly indicated that their purpose was to silence Shaikh.' Following form, the CPJ must have pressed the button and sent copies of their communication for information and necessary action to, inter alia, the American Society of Newspaper Editors, Amnesty International, Article 19 (UK), Article 19 (The Netherlands), Congressional Committee to Support Writers and Journalists, Freedom House, Human Rights Watch, Index on Censorship, International Association of Broadcasting, International Federation of Journalists, International Federation of Newspaper Publishers, International Journalism Institute, International PEN, International Press Institute, National Association of Black Journalists, National Press Club, Newspaper Association of America, The Newspaper Guild of North American National Broadcasters Association, Reporteurs Sans Frontieres, Overseas Press Club, the Society of Professional Journalists, World Press Freedom Committee. The question I ask: Whoever be the hamhanded operation manager, and if a government agency man, does he realize the harm such incidents cause to the reputation of this country, already shredded and in tatters? Obviously not. He is most likely to be uneducated in the true sense of the word. What Musharraf could do is to set his forces to work to find out exactly who the assailants were and why they found it necessary, or thought it useful, to act in such manner? If they turn out to be underlings of his government he should ensure that they are properly punished and made an example of, so that no such incidents recur. If they be nothing to do with his administration and acting on behalf of some other party or grouping or individual, the same should happen. The general has finally told us what we have suspected for long, that he is not retiring on his due retirement date. No news. No surprise. To many of us, he remains the best option, in view of what alternatives we have on the ground. He is in command and will remain so for as long as his army backs him. From what we can judge, he is broadminded, unbigoted, uncorrupt. He is worth helping. What we must do is get the economy going. A difficult task in view of the state of the country and the deserved hostility towards it. For instance, when an American wishes to travel to Pakistan to perhaps set up a business he checks into the US government official website to find out what he can about the country. The first word he will read on the lengthy blurb flashed up to him on Pakistan is 'Warning' in bold print. He is informed that the Department of State warns US citizens to evaluate carefully the implications for their security and safety before deciding to travel to Pakistan. Information received by the US government, he reads, suggests a continued need for vigilance on the part of American citizens resident in or travelling through Pakistan. Because, the US government has received 'a growing body of information that suggests strongly that extremists based in Afghanistan are preparing to attack US interests in Pakistan in the near future.' It alerts its citizens to the presence of an international terrorist, one Osama bin Laden, who lives in neighbouring Afghanistan, sheltered by his friends the Taliban, who has the sympathy and support of his fellow Muslims in Pakistan. All US citizens, resident in or travelling through Pakistan are urged to take all steps to increase their security awareness. On the subject of tension between India and Pakistan over the military situation in Kargil, Kashmir, the prospective visitor learns that though this may have declined there are extremist groups in Pakistan who have voiced their opposition to the role played by the Pakistan government in de-escalation. He reads how in the past such groups have issued threats against the US government, and its citizens and facilities overseas. Organized or flash rallies, demonstrations and processions occur from time to time throughout Pakistan and often take on an anti- western or anti-American character. In Karachi and the southern parts of Punjab periods of protracted political and sectarian violence have been common, and such violence may pose a potential danger to American travellers. The reader is warned that during the period of protracted religious observance such as the one month of Ramazan and ten days of Muharram, sectarian violence is on the increase. It continues on in the same vein. This information is dated September 1999, but as far as the US government is concerned it remains fully valid. The military government has made not a whit of a difference. Should the General and his men not make some sort of an effort to have this 'warning' changed for the better? By doing nothing about it, by seemingly being content with how things are, the risk is that a worse scenario will emerge. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010407 ------------------------------------------------------------------- The Pakistani Sahib: only half there ------------------------------------------------------------------- Ayaz Amir AT our first formal mess night at the Kakul Academy in 1967 (how time flies) a strange ceremony greeted our eyes. At table as Rooh Afza was poured into our liqueur glasses a cadet seated at one end stood up, raised his glass and uttered the mystifying words, "Mr Vice". At this we all stood up, raised our glasses and in loud voices intoned, "The President of Pakistan". The Rooh Afza, not quite the liquid I would fancy now, went down our throats. What on earth were we up to? As officers of the Indian army in days gone by drank to the health of the Sovereign, we, following much the same tradition, were drinking to the health of the president, then Field Marshal Ayub Khan and later General Yahya. Things soon became clearer. We were being trained as officers and 'gentlemen'. At Kakul the stress was on character-building and how we would fare in the face of adversity. Integrity was not to be compromised. Lying and cheating were the greatest sins in the calendar. And mess manners were to be impeccable. In the civil and police academies it was the same. Hence the horse- riding and table manners and the inculcation of a standoffish attitude. While no one was gauche enough to say this explicitly, what we were supposed to acquire were the attributes of an English gentleman. That many of the budding officers had only a dim understanding of what this meant was of course a different matter. Pakistan's elite classes were much more homogeneous than they are nowadays. English manners defined the upper classes everywhere. In period photographs it is common to see members of the gentry wearing evening clothes. In Sherbaz Mazari's book of reminiscences there is a photograph of him and Nawab Akbar Bugti at the races: in morning suits and hats. The Sahibs were at one level and the masses at another and the dividing line between the two was sharp and clearly demarcated. But a flaw ran deep through this flummery. To all outward appearances the Pakistani upper classes were more British than their erstwhile masters. But this Britishness was on the surface: all form and little substance. At its core lay a great deal of confusion. Being a gentleman in England or France or Czarist Russia was not only about horse races, balls, evening clothes and waltzing to the strains of the Blue Danube. More than these outward symbols of class it meant conforming to a certain code of honour. From public school to university and from there to the callings of adult life, adherence to this code is what defined a gentleman. He was the modern equivalent of the knight of the Middle Ages, the samurai of Japan, a member of the equestrian order in Rome. Indeed in all cultures where the martial tradition ran strong - Rajput, Maratha, Sikh, Afghan, whatever - he would have his counterpart. But with the Pakistani Sahib there is a deep-seated problem. The Rajput, Sikh and Afghan derived his code of conduct and gallantry from his culture and history. When the European acted superior and paraded his colonial stuff, his attitude too fitted into a frame of history. His ideas of right and wrong, his conception of gentlemanly behaviour, his tastes and the culture these tastes reflected drew strength from a tradition going back to Homer and the earliest Greeks. His outlook on life thus had an historic memory. What is the intellectual tradition to which the Pakistani Sahib can refer? Whence comes his inspiration? From a mishmash of two elements: the use of the English language as an end in itself, as opposed to English being a passport to an intellectual tradition; and visions of glory associated with India's Mughal past. To nothing more immediate or tangible can he (or rather we) relate. The British experience has left a powerful imprint on our psyche. The outward forms of that experience we have faithfully copied but its spirit we have failed to imbibe. This accounts in large part for our intellectual confusion. It also accounts, I think, for the failure of our political class to master the problems of democracy and administration. Why must power lead always to excess? Why cannot its exercise be tempered with caution and moderation? To a great extent because the Sahib class, which is Pakistan's governing class, has no sense of history. To what models can it relate its conduct? In the light of what examples can it measure its steps? The British experience has been reduced to a set of ephemera: turbaned waiters, leather sofas, chota pegs (or rather, since we like our whisky, burra pegs), tweed coats, cricket (now increasingly golf) and a vague nostalgia for an era when trains ran on time and things were more 'liberal'. Our public schools (Aitchison, Lawrence, etc) excel at turning out little scholars who can speak the English language with ease, have a confident manner but whose classical education does not go beyond a single play of Shakespeare's (that too because it is in the O Level curriculum). Once upon a time institutions like Lahore's Government College and the Punjab University (and even places like Gordon College and Edwardes College) were homes to learning and produced students with a 'liberal' bent of mind. But with the collapse of college and university education Pakistan is producing a generation of political illiterates, with no sense of the past and little insight into the future. This is not to say British public schools are nurseries of academic brilliance. But they are links in a chain which extends to the great universities of Oxford and Cambridge. There too you find the usual complement of time-servers and dunces. But there is also genuine learning which year after year chips away at the frontiers of knowledge, ever endeavouring to extend them, and sustains and enriches Britain's governing class. Much the same is true of other advanced countries. What about India? In some ways it is better off than us. Up to the beginning of the 19th century the Indian mind knew very little of its past. It had no sense of history and Indian archaeology lay unexplored. Then under the impact of western and mainly English scholarship the past became a living reality for the Indian mind. Flushed with this discovery, an attempt was made to invent a past which never really existed, Nehru's 'Discovery of India' falling into this category of fiction writing. Even so, the Hindu revivalism of the 19th century had an enlightened basis to it. But this movement was dragged in a different direction when Gandhi took Hindu nationalism closer to the people and gave it a reactionary colouring. Thus was drawn a sharper line between Hindus and Muslims. Thus was partition made inevitable. From Socrates onwards, popular causes have often led to unintended consequences. But through all this India at least acquired a long line of heroes. The Pakistani pantheon by contrast is thinly peopled. Syed Ahmad Khan, Iqbal, Jinnah: that's about it. And even as far as these three are concerned efforts have been afoot to make them out to be what they were not. For the last 50 years and more Pakistan's clerics have tried putting a skull-cap on Jinnah while the Sahibs, awash in nostalgia, are drawing a line under their own failures by seeking the shortest passage out of the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010407 ------------------------------------------------------------------- Snakes & ladders, musical chairs ------------------------------------------------------------------- Irfan Husain AS the results of the second phase of the local body elections emerge, it becomes even more clear that the government's ambition of marginalizing the PPP and Nawaz Sharif's faction of the Muslim League has not been realized. The army's game plan was for non-political, independent candidates to win the bulk of the seats for Nazims/Naibs (heads and deputy heads) of the local bodies. This has not happened: so far, independents have got barely 30 per cent, with candidates supported either by the PPP or Nawaz Sharif's splinter group of the PML gaining virtually all the remaining seats. As usual, the religious parties got clobbered. Interestingly, Gujrat, the stronghold of Chaudhry Shujaat and Chaudhry Parvez, the kingpins of the 'like- minded' (i.e., officially sanctioned) rump of the PML, went almost totally to candidates supported by the PPP. These results should convince GHQ that its dream of creating a King's Party out of PML turncoats has failed to materialize. Or rather, this pathetic grouping has no credibility whatsoever as its lack of popularity has been thoroughly exposed. So if General Musharraf was hoping to ride this new steed into the presidency, he may discover he has acquired a broken down nag that is unfit to pull a tonga in Anarkali. Indeed, the electoral exercise thus far has ended up playing the useful role of a barometer of popular will. Firstly, the low turnout of around 30 per cent shows that despite massive propaganda over the official electronic media, people have not been turned on by these elections. Very clearly, only political parties can turn out the vote. By arbitrarily banning them from openly nominating candidates, the government has robbed these elections of excitement and drama. The results also show that, like it or not, the Pakistani polity has developed into a two-party system, and no amount of official tinkering is going to change that any time soon. The fact that the PPP-supported candidates have emerged with 28 per cent of the seats so far, with the PML (Nawaz) gaining 23 per cent would suggest that the government's efforts to malign the leaders of both parties have failed. Apart from widespread apathy, the elections were boycotted by the minorities in protest against the pernicious and divisive separate electorate system, and women wee not allowed to vote by their menfolk in some of the more backward parts of the country. Needless to say, the government did nothing to ensure that they exercised their right to vote. All in all, government's pious hope to encourage a new class of non-political people to enter the arena would seem to have backfired with the same old families being represented in the new setup that is taking shape. The signal the electorate has sent is loud and clear: in the provincial and national elections due next yea, the race will be between Benazir Bhutto's PPP and Nawaz Sharif's Muslim League. The King's Party as well as the religious groups will get hammered. Given this probable scenario, there will be a strong temptation to revive the assemblies and browbeat them to rubberstamp legislation to give the president extraordinary powers (including the notorious 58(2)(b) empowering him to sack the PM). Despite the sharp lessons emerging from the ongoing elections, it is doubtful if the regime has learned anything. Like a locomotive without brakes, it is thundering along a single, well-worn track. Time and again, the military has intervened through a coup, and tried to solve the nation's many problems through a series of ad hoc measures that were supposed to add up to a magnificent edifice. Unfortunately, as soon as the junta du jour disappeared from the scene, the newly erected system crumbled, its only traces to be found in yellowing newspapers. So far, our generals (and, to be fair, most of our political class) have failed to appreciate the central fact that political systems - specially democratic ones - need a solid foundation of traditions, tolerance and history behind them to function effectively. They grow and evolve gradually. If they are uprooted time and again, they cannot take root and flourish. But the military seeks to supplant them with a quick-fix patchwork that only lasts as long as the dictator of the day is around. Many of General Musharraf's supporters (and there is no shortage of them) maintain that he is a good, broad-minded man, and given a choice between him, Benazir Bhutto and Nawaz Sharif, they would much rather have him. Given the track record of the three, so would I. But a system is not about individuals, it is about institutions and continuity. Military rule, no matter what its facade, cannot provide a substitute for a just democratic order. If we have a decent soldier like General Musharraf today, what happens if and when he leaves the scene? It is not inconceivable of a Zia-like figure to replace him. Although democracy has been much maligned in Pakistan, the fact remains that it is the only system that provides for a peaceful transition, and where the ruled can turf out the rulers. Muslim history is replete with civil war accompanying the transfer of power. Indeed, fratricide and patricide were virtually the only means of seizing power. These traditions live on in most Muslim states today, and are an important reason to strengthen, not weaken the democratic process. Unfortunately, politicians have proved too corrupt and immature to handle power once elected to high office. But their own many shortcomings apart, it is also a fact that time and again, they have been discredited and their governments destabilized by unscrupulous generals and shadowy agencies out of the control of elected leaders. Sections of the media have, consciously or unwittingly, played along, creating the impression in the public mind that politicians and democracy are the causes of all our problems. Under these circumstances, it becomes easy for the military to intervene openly, or interfere covertly. This game of snakes and ladders has gone on too long. Mud slinging and sloganeering have replaced debate and discourse. Parties fragment, often by official fiat; politicians are victimized while tainted judges and generals get off scot-free; journalists are bought; and policies and programmes are scrapped as soon as one government is toppled and replaced by another. In short, there is constant confusion and chaos that is disastrous for the economy. And as the economy stagnates and the population increases, there is little fresh investment and unemployment soars. As long as the present tension between the needs of the country and the perceptions of the military persists, this state of perpetual tug-of-war will continue. It is high time our leaders in and out of uniform display a measure of maturity and wisdom and sit down to discuss and formulate the rules of the game to ensure that both politicians and generals know the limits of their respective power and responsibilities. As a nation, we can no longer afford the musical chairs our leaders have been playing. If the results of the second phase of the local bodies elections help concentrate minds at GHQ, they will have played a very useful role.
SPORTS 20010402 ------------------------------------------------------------------- PCB portraying players as villains in sad scenario ------------------------------------------------------------------- Reporter KARACHI, April 1: The Pakistan Cricket Board cannot be absolved of its share in creating chaos and confusion by portraying the team members as villains in a depressing scenario. The PCB mischievously released selected portions of manager Fakir Aizazuddin's 30-page report to show that senior players and coach Javed Miandad are responsible for the entire crisis and for the team's poor performance in New Zealand. The manager's report, as such, reveals nothing new but only confirms media reports which have highlighted in the recent past the growing resentment in the dressing room because of Miandad. Not surprisingly, each time the chairman of the PCB, Lt Gen Tauqir Zia, denied the stories and came out to defend Miandad by threatening the players with dire consequences if they went against the former captain. But now the publication of the manager's report confirms apprehensions that the PCB are looking for ways to show Miandad the door after having announced him as coach until the 2003 World Cup. The PCB on Sunday reacted with surprise and disappointment to the release of Aizazuddin's report. The general told reporters that he would investigate the issue and inquire from the manager how the confidential document was leaked out. But to put the records straight, although Aizazuddin is due to arrive here on Monday with the Pakistan team, his report had reached the cricket headquarters in Lahore on March 27. Dr Nauman Niaz, who toured with the team as cricket analyst, had brought the document with him after his visit was abruptly cut short by the PCB. No matter what investigations the PCB would conduct now, the cat is out of the bag. It will surely create a lot of problems for the top hierarchy of the PCB which is severely criticized for creating a situation of uncertainty in the team and conspiring against certain individuals. While Aizazuddin's report confirms the unprofessional and uncompromising attitude of Wasim Akram, it also endorses the fact that interference by some PCB officials in selectorial matters has irked skipper Moin Khan. Sikander Bakht's resignation two months after Iqbal Qasim and Ehteshamuddin were sacked establishes further the point that the PCB had been repeatedly entering the out-of-bound area. Instead of wasting their energies in finding the culprit who released the manager's report, the PCB would be well advised to inquire about who is the PCB official who is putting his foot down in team selections. People associated with the game have no hesitation in pointing fingers at former captain and member of advisory panel Ramiz Raja. They believe that he influences the decision-makers in sending players of his choice, as it is evident from the departures of Arshad Khan and Mohammad Akram. They support their argument by saying that both the players play for Raja's Allied Bank and are always on tours, whether they are required or not. Arshad Khan carried the towels in all the three Tests in New Zealand while Akram played at Hamilton where on a seamer-friendly pitch he had figures of 22-1-106-0. Ijaz Ahmad was recalled after being thrown in the wilderness in July despite having poor scores of 1, 1 and five in three first- class innings he played in the entire 2000-01 domestic season. His performance was not unexpected in the Tests as he scored 32 runs in three Test innings. There's no need to say that the arrival of the three players when they were not required unsettled the team, besides imbalancing it as they were virtually left with limited options to choose from. Pakistan cricket has never been in such doldrums in the past. It is fast reaching a point of no-return and may soon end up with the same fate as of the once invincible West Indies who are now the whipping boys of cricket. Instead of blaming the players and humiliating them in public, the PCB officials should have the guts and morale courage to admit that they made the costly decisions which have left Pakistan's cricket future at a knife's edge. Moreover, it will be a test of PCB character if it releases the entire Aizazuddin's report like it did last year while publicizing Justice Malik Mohammad Qayyum's report. The followers of the game deserve the right to know the other observations of the managers besides its analysis of the players on tour. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010405 ------------------------------------------------------------------- Pakistan may hire foreign coach ------------------------------------------------------------------- KARACHI, April 4: Pakistan is considering hiring South African Barry Richards or Australian Greg Chappell to coach the national cricket team, officials said on Wednesday. "We are considering Barry Richards and Greg Chappell and we are trying to contact them, but nothing has been finalised as yet," Pakistan Cricket Board (PCB) chairman Lt Gen Tauqir Zia said. "When we talk of a qualified coach to effect good results, why not bring a foreigner." Former England batsman Geoffrey Boycott was also among candidates to replace Javed Miandad, who was sacked on Tuesday. "I believe now it has become a universal practice of having a foreign coach. I have no hesitation in saying that the experiment has done wonders for the teams who have gone for it," director of the PCB Munawwar Rana said. The precedent of Bob Woolmer (England), Duncan Fletcher (Zimbabwe), Dav Whatmore (Australia) and John Wright (New Zealand) taking over at South Africa, England, Sri Lanka and India respectively, has inspired the PCB's decision to hire a foreign coach. "The candidates for the job will be shortlisted by the advisory council of the board very soon. But I am not sure if the foreign coach will be appointed before the team leaves for England early next month," he added. Pakistan will play two Tests in May and then will take part in a tri-nation one-day series in June with England and Australia. "Geoffrey Boycott could possibly be one of the men to be discussed for the job," Rana added. The former England captain spent 12 days coaching at the Pakistan National Cricket Academy in Lahore in February and is due to make further visits in May and October. But some former Test cricketers believe it would be a mistake. "The idea would not work in this part of the world because of the different culture. Communication between the coach and the players is the integral part but unfortunately most of the Pakistan players don't understand English," said Intikhab Alam, a former captain and longest serving Pakistan coach. "There have been successful coaches in Pakistan who will surely deliver if given the same backing and authority which Javed Miandad enjoyed before he was dumped," he added. "If rest of the Test-playing teams have been successful with foreign coaches, there must be some reason. Pakistan cricket is already down and can't slip further even if the foreign coach fails. The experiment is worth giving a try," he said. The PCB said it had hired an English fielding coach on a part-time basis. "We have yet to decide about the new coach - but we have hired Somerset's Julian Fountain as a part-time fielding coach," PCB advisory council member Ramiz Raja said. "Fountain has got a huge reputation as he works with the baseball technique and is presently working with the West Indian team." Fountain will arrive in Pakistan in June for a three-month stint and will work in the national cricket academy set up in Lahore. An English curator is also in Pakistan testing the soil to learn how best to make competitive pitches.-AFP/Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010404 ------------------------------------------------------------------- Miandad humiliated for second time ------------------------------------------------------------------- Samiul Hasan KARACHI, April 3: Javed Miandad has fallen prey to the players power for the second time in three years when he was unceremoniously shown the door without being allowed to complete his specified term. Miandad, appointed in March 2000, was given the mandate until the 2003 World Cup in South Africa. But his ouster means that either Mudassar Nazar or Geoffrey Boycott might be given the task to prepare the team for the ultimate challenge. Mudassar, who also coached the team on the 1993 tour to the West Indies, is incharge of the National Cricket Academy while Boycott will be arriving here on May 21 for his second visit to coach the youngsters. There is also a proposal to utilize the Yorkshireman's services in helping the team with ground and pitch conditions besides other assistance to counter England in the two Tests to be played in May. But as regards Miandad, country's most successful batsman, he had faced similar problems in April 1999 when he quit after just seven months as coach. The similarity on both the occasions was players unhappiness against his style, approach and working method. If the players complained to deposed Prime Minister Nawaz Sharif in April 1999 that the coach was making false and unsubstantiated allegations of their involvement in corruption, this time the players alleged that he was wrongly getting share from the prize money and logo deals. To add insult to injury, Miandad's coached team lost the five-match series in New Zealand 3-2 and then had to suffer the embarrassment of suffering their heaviest defeat at Hamilton where they lost by an innings and 185 runs after winning at Auckland by 299 runs. Whatever may be the case, the Pakistan Cricket Board (PCB) went full distance in defending Miandad before being left with no other option but to either sack the senior players or Miandad, as recommended by Faqir Aizazuddin in his tour report. While one can feel sorry for Miandad, it would be unjustified to rest all the blame on the PCB officials. Any establishment probably would have done the same. However, the PCB cannot be absolved of criticizm for appointing Miandad in the first place when only a year earlier, he had problems with the same set of players. The chairman of the PCB, Lt Gen Tauqir Zia, told reporters that he didn't agree that Miandad was a victim of players power. "You and I are looking at the issue from a different angle," he told mediamen. "I know Miandad is hurt but I will pamper him like a kid," the general told reporters. While Miandad's contribution in helping Inzamam-ul-Haq, Yousuf Youhana and Faisal Iqbal can't be denied, the fact that he had a controversial career ever-since he was first appointed captain in 1979-80 can't be forgotten. His appointment had led to a players rebellion after the Australia tour in 1981-82 an on the eve of the home series against Sri Lanka. Besides, his performance as coach was below-par as under his reign, Pakistan lost three out of four home series in the last two years. However, Miandad can take pride in saying that he was the architect behind Pakistan's successful tour to India in 1999 and then an equally good tour to the West Indies last year where Pakistan won the triangular series and lost the Antigua Test in controversial circumstances. According to the PCB chairman, Miandad has been pulled out because his services were required at the cricket headquarters. But he has yet to be given any assignment. The PCB further claims that in Miandad's absence, there were not enough technocrats to handle day- to-day affairs at home. But while saying this, the PCB officials forgot that they had appointed another "indispensable individual" in Pakistan cricket's musical chair Yawar Saeed as manager for Sharjah who is also a technocrat and a member of the advisory council. Yawar, who has previously managed cricket teams, was also a candidate for the ICC chief executive's office but failed to impress the committee who opted for Australian Malcolm Speed. He had been replaced as PCB director on Nov 21 by Brig Munawwar Rana. Nevertheless, Miandad, despite being humiliated for the second time, is optimistic that he might stage a comeback. "You never know. I might be back for the England tour," he commented. In a surprise move, the PCB didn't name a coach for the Sharjah tour because of the shortage of time. The explanation is hollow and void of any logic because the PCB were mentally prepared to sack Miandad and had hinted that quite a few times. Waqar Younis was appointed captain for the Sharjah series even though Inzamam-ul-Haq looked a certainty after having served as vice-captain to an indisposed Moin Khan. But the decision appears wise and sensible if the fast bowlers command and authority in the Singapore tri-nation tournament last July is taken into consideration. But at the same time, Younis' appointment would surely provide a lease of life for a struggling Moin whose captaincy and place in the team is under serious threat. If Inzamam would have been the candidate to replace Moin, he would have been the incharge of the team in Sharjah and not Younis who will have to battle for a place in the Test squad when Shoaib Akhtar, Mohammad Sami, Wasim Akram and allrounder Abdur Razzaq and Azhar Mahmood regain complete fitness. However, the most mind-boggling decision is the recall of injured trio of Saeed Anwar, Abdur Razzaq and Mohammad Sami. Saeed and Razzaq didn't participate in the Test series after appearing in the one-day rubber, while a shin injury had sidelined Sami from the Hamilton humiliation. It is unknown on what grounds the three regained their places. They neither appeared in any first-class matches nor played in any practice match of note. On the face of it, they have secured medical clearance on paper. Whether it is enough for the selectors to pick a player? Your guess in the same as mine. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010407 ------------------------------------------------------------------- Nur Khan urges PCB boss to accept rot and step down ------------------------------------------------------------------- Imran Naeem Ahmad ISLAMABAD, April 6: In the wake of the disastrous New Zealand tour, a word of advice to Pakistan cricket chief, Lt Gen Tauqir Zia, has come from a legendary sports administrator who wants him to "accept responsibility for the rot and step down." Air Marshal (Retd) Nur Khan, whose achievements as an administrator are etched in golden words in Pakistan cricket, hockey and squash history, told Dawn that although Tauqir has had a fair time at the helm of the cricket board, "we are today worse than ever before". "When there is a high rate of unfitness, sickness, laziness and team morale is low, it can only be the basic responsibility of the person heading the institution," said Nur Khan, who headed the then Board of Control for Cricket in Pakistan (BCCP) from 1980 to 1984. As many as half a dozen players including Wasim Akram and Abdur Razzaq dropped out during the New Zealand tour due to injuries where Pakistan lost the one-day contest 3-2 while drawing the Test series 1-1. "It is unheard of that half the team is unfit and Tauqir should accept total responsibility for this." Nur Khan pointed out that so far Tauqir had totally been on the wrong track and had clearly failed to produce positive results. "We have fallen so far behind that we will have to get modernised on all aspects including technique, training health care and preparation of pitches." Terming the New Zealand tour as "chaotic", he felt that too many people were speaking up. "No one knew what the manager and the captain's roles were, it was an indication that there was no management." He strongly defended the players and said the practice of the management to blame them for all the ills afflicting the sport was wrong. "Who is more important, the players or Tauqir," he questioned. He also took a swipe at the Pakistan manager to New Zealand, Faqir Aizazuddin, who in his tour report, first published by Dawn last week, had criticised some of the senior players and also Javed Miandad, who was the coach. "A manager appointed only for one tour commenting on the players and the coach and blaming the seniors is not on." Nur Khan dismissed the whole idea of removing the senior players and inducting in new ones as "nonsense". "You just can't do without the senior players. A person like Wasim Akram is one of the exceptional players of this era. He obviously has his weaknesses but it was the management's job to nurture him like an outstanding horserace. He should have been the captain today had he been handled intelligently. "Players are our treasure and the ones who deliver the goods. They are the raw material that is to be made into steel and that is the responsibility of the management." But he observed that the "unstable management" was not allowing the players to flourish. "Destroying the career of a player is the easiest thing to do. All you have to do is not select the player. The job of the management should be to protect the players from their weaknesses that are bound to be there," said Nur Khan, who was also once the president of the Pakistan Hockey Federation during the 80s when the national side had all major title in its bag. Nur Khan explained that although there had been so many changes in the top management of cricket with some of them being destructive managements, the team, he said was still there. "This shows that the material is still there, the resilience and the capabilities of our players are there but it is a total lack of making sure that the head of the cricket board is first held responsible for whatever wrong occurs," the retired Air Marshal noted. He felt that it was "absolutely necessary" at this stage to have foreign coaches and dubbed Geoff Boycott's recent two-week coaching stint to train Academy players as "meaningless". "You have to look for the best man, with a proven track record who should be able to remove the players' weaknesses. He should have the aptitude to do this. Unless you are willing to do that sort of thing, hitting the top is not on,"he remarked. He noted that the change in Indian mentality had come about largely because they hired New Zealander John Wright as coach. "Coaching is a very specialised job and whosoever the Pakistan Cricket Board decides to bring in, should not be allowed to experiment and learn at the cost of the Pakistan team." He said it was about time that the management learnt to accept responsibility if the team does not perform. "In any institution the key man responsible is the CEO, but in our country unfortunately he has always got away scotfree." ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
Dawn page
Webbed by Philip McEldowney
Last update:
.