------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 21 April 2001 Issue : 07/16 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + Islamabad, Moscow seek better ties + Rescheduling of loans essential for uplift + References against Asif, Benazir dismissed: Disqualification + Asian Development Bank to provide $200 million drought assistance + Justice Qayyum showed bias: SC + Complete shutdown in Sindh cities + Ex-MPA held in raid on MQM office + Rs3.1billion allocated for Chashma right bank canal project + WAPDA pays Rs1.5billion to NWFP + Geelani returns to APHC executive council + 52pc bottled water unfit: report + World Bank curtails $100million soft loan to Pakistan + More duty-free items in next budget + WAPDA seeks Rs10 billion as GST compensation + All Parties Hurriyat Conference sees little hope in talks + Five accords signed with Morocco + Musharraf suggests job-oriented schemes --------------------------------- BUSINESS & ECONOMY + WAPDA, KESC demand share: Sick units sale + Economic growth seen below 5%: ADB report on Pakistan + Morocco for joint business council: Youssoufi visits FPCCI + IBRD team wants sugar industry relocation + CCOP okays sale of 10pc National Bank of Pakistan shares + SBP sells bonds worth Rs11.2billion + Exporters assured financial assistance + Foreign banks focus on consumer banking + Drought will cause $2bn loss: Shaukat outlines remedial strategy + Demand for farm credit increases --------------------------------------- EDITORIALS & FEATURES + Flotsam and Jetsam Ardeshir Cowasjee + The come up pance of an upright man Ayaz Amir ----------- SPORTS + Pakistan wary of Sri Lankan backlash in final + Moin and Rashid rival for wicket keeper's slot + Pakistan put New Zealand where they belong
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010420 ------------------------------------------------------------------- Islamabad, Moscow seek better ties ------------------------------------------------------------------- ISLAMABAD, April 19: Russian Deputy Foreign Minister Alexander Losyukov on Thursday held talks with Pakistan Foreign Ministry officials on bilateral and regional issues, officials said. "During these consultations the entire range of bilateral relations were discussed in depth. Regional and international issues also formed part of the discussions," a foreign ministry statement said. The two sides reaffirmed their willingness to enhance the level of bilateral relations and to work towards peace and prosperity in the region, it added. Mr Losyukov also met Additional Secretary Aziz Ahmed Khan to review developments relating to Afghanistan, the statement said without elaborating.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010420 ------------------------------------------------------------------- Rescheduling of loans essential for uplift ------------------------------------------------------------------- By Ashraf Mumtaz LAHORE, April 19: The chief executive, Gen Pervez Musharraf, on Thursday indicated that Pakistan would soon be approaching the World Bank to seek rescheduling of its outstanding loans to get some "breathing space" for at least three years, and spare funds for development. He believed that in three to four years, Pakistan would be able to beat its debt servicing liability and get out of the debt trap. The CE said this while inaugurating the National University of Computer and Emerging Sciences, set up by the Foundation for Advancement of Science and Technology (FAST). Punjab Governor Muhammad Safdar, Science and Technology Minister Dr Ataur Rehman and FAST Chancellor Wasim Sajjad, chairman of the suspended Senate, were present. Pakistan at present, said Gen Musharraf, was at the crossroads of its history and destiny as all resources were consumed by debt- servicing and defence, leaving little for development. No development project, he stated, could be launched without getting more foreign loans and more loans meant adding to the already huge debt burden. Describing it as a catch-22 situation, the CE said the solution lay in economic revival that would be possible only with augmented emphasis on the promotion of information technology and agriculture. He said that though the rulers in the past 12 years had increased the loan liabilities by some $24 billion, the amount was not invested in sectors which could put the country on way to progress. Had the previous governments utilized the money on right projects, Pakistan would not have been caught in the debt trap as it was finding itself now. The approach about foreign loans, Gen Musharraf said, needed a change to rid the country of the burden of loans and initiate development activities. The CE said that at present Pakistan was earning about $30 million from the Information Technology and the government was determined to increase the earning target by 3,500 per cent. Pakistan, he pointed out, had excellent infrastructure, human resources and skill in English language. Because of these capabilities, the general was confident that the country had the potential to make rapid progress. He said that with Dr Ataur Rehman as science and technology minister, Pakistan would certainly become an "information technology power house". He said the pace set by his government in this field was simply irreversible. He regretted that the Ummah was behind the Western world despite the fact that Muslim countries constituted one-fourth of the world population and were blessed with resources. The backwardness was mainly because of the gap in the field of technology. He said the total number of universities in the Muslim countries and the PhDs being produced there were far less than the figures of a single country in the developed world. The situation, he observed, demanded that priorities should be reordered. In the field of education, Gen Musharraf said the government was trying to streamline the system of scholarships. At present, he alleged, no one knew the size of amount allocated for scholarships or the identity of donors and recipients. The CE said a system was being devised under which students obtaining first five position in all subjects would be given scholarships and they would be free to continue their studies in any university of their choice. It would be ensured, he promised, that a talented student did not have to discontinue his studies simply because of the poor financial position of his parents. Talking to reporters later, Gen Musharraf held vested interests and anti-Pakistan elements responsible for all what was happening in Karachi for the last few days. He was confident that circumstances would return to normal soon. He praised the university for making merit as the yardstick for admissions. He assured the management that the government would allot a plot in Islamabad for the university. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010420 ------------------------------------------------------------------- References against Asif, Benazir dismissed: Disqualification ------------------------------------------------------------------- By Our Staff Reporter ISLAMABAD, April 19: Chief Election Commissioner Abdul Qadeer Chaudhry on Thursday dismissed two references seeking disqualification of Benazir Bhutto and her husband Asif Ali Zardari. The references were filed under Article 63 of the Constitution by speaker of the suspended National Assembly, Illahi Bakhsh Soomro, and chairman of the suspended Senate, Wasim Sajjad. The Chief Election Commissioner dismissed the references, keeping in view the judgment of the Supreme Court, whereby convictions recorded against and the sentences awarded to Ms Bhutto and Mr Zardari, the appellants, in the SGS case had been set aside, an official announcement said. APP adds: The Speaker had submitted to the EC that the Ehtesab bench of the Lahore High Court had convicted both leaders of the PPP in the SGS case and disqualified them from holding membership of the National Assembly and the Senate. Therefore, the Speaker had stated, their membership of both houses of parliament be seized forthwith. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010420 ------------------------------------------------------------------- Asian Development Bank to provide $200 million drought assistance ------------------------------------------------------------------- ISLAMABAD, April 19: The Asian Development Bank is considering assistance of over $200 million for Pakistan in the wake of recent drought. "We have sympathy with the government of Pakistan and are holding consultations in this respect," the bank's senior economic advisor, Naved Hamid, told newsmen at a press briefing on Thursday. In this regard, he said, an ADB mission would arrive in two weeks to hold talks. Naved Hamid said the assistance would include around $120 million from the bank's resource in Pakistan and around $90 million to be reallocated under the Social Action Programme for health and education facilities.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010419 ------------------------------------------------------------------- Complete shutdown in Sindh cities: ------------------------------------------------------------------- Dawn Report KARACHI, April 18: A complete shutdown was observed in almost all cities and towns in Sindh on Wednesday in response to a call given by the Muttahida Qaumi Movement and the Jeay Sindh Qaumi Mahaz. The strike turned violent in Karachi, where a man was killed and two others were wounded in three bomb blasts. Violent protests were reported from other towns. The MQM and the JSQM had given the strike call to protest against what they alleged an artificial shortage of water and injustices being perpetrated against the province and its people. Despite heavy deployment of the police and rangers throughout Karachi, five more vehicles were set on fire in the morning, bringing the figure to 42 during the last 36 hours. According to the police, the figure was 27. The police claimed to have arrested about 600 people for their alleged involvement in violence. A bomb exploded near Teen Talwar in the morning, killing a 40-year- old scavenger, Banaras Khan, and leaving his companion, Moin, seriously injured. Moin said they were picking papers in a garbage dump when Banaras found a pack of biscuit. Moin added that as soon as Banaras opened the pack, an explosion occurred. Atiq, 13, was injured in the City Railway Colony when a hand- cracker exploded. His condition was stated to be out of danger. The police found six more crackers in the locality. The third blast was reported from the Dalton Supermarket in the Defence Housing Authority. The bomb was planted on a bicycle. There was no commercial activity in the city and attendance in offices remained thin. Most of the educational institutions remained closed and transporters kept their vehicles off the road. People preferred to stay indoors. HYDERABAD: The strike largely remained successful and peaceful. All main markets, including Tilak Incline, Shahi Bazaar, Sarafa Bazaar, Liaquat Colony, Resham Bazaar, Chotki Ghitti, Phulleli, Paretabad, New Cloth Market, Timber Market, Grain Market, Market Tower, Faujdari Road, Cantonment Shopping Centre and Saddar, remained closed. Similar reports were received from Latifabad and Qasimabad. However, some shops were open on the Bacha Khan Chowk, an ANP- dominated locality. Except for a few rickshaws, there was almost no traffic and attendance in offices and educational institutions remained thin. On Tuesday night, a government vehicle was burnt and another damaged by some youths. A State Mail Service vehicle (No CE-8289) was set afire by three miscreants outside the Railway Mail Office at the railway station. The police picked up an MQM activist, identified as Moon, in unit No 9 of Latifabad. Tyres were burnt on Auto Bhan Road in unit Nos 2, 4, 7 and 9. Some unknown persons stoned the vehicular traffic in Manzoorabad, Unnarpur and at the Jamshoro railway crossing. MIRPURKHAS:All business centres remained closed throughout the day. Transporters also observed the strike. Harassment gripped the town after the explosion of five crackers in different localities and burning of tyres in the Satellite Town. The police late Tuesday night conducted raids and picked up over two dozen men without any reason. Those arrested were said to be affiliated with no political parties. LARKANA:In Shahdadkot, some 50 JSQM activists took out a procession and chanted slogans against the water crisis in the province. The police picked up four persons, but refused to disclose their names. The Ratodero police arrested 10 JSQM workers in midnight raids in connection with an FIR lodged on Monday against 150 workers of the party. Those arrested were identified as: Sudheer Siyanch, Abdul Razzak Qureshi, Azkar Samo, Baghi Soomro, Mehboob Siyanch, Muneer Jagirani, Imtiaz Langah, Jameel Langah, Ikhtiar Dahani and Akhtiar Siyanch. SUKKUR: A complete strike was observed in Ghotki, Pano Aqil, Nawabshah, Shikarpur and Jacobabad. But, there was a cold response to the strike call in the Sukkur district. The police arrested Tariq and Shahid at Takkar Mohalla; Asif Ahmed and Iftikhar at Ghraibabad; and Wahid, Anwer, and Ajiz at Shamsabad. KHAIRPUR: A partial strike was observed in the town. Main business centres, including Mall Road, Panj Gulla and Shahi Bazaar, remained closed. Some youths blocked traffic on the National Highway for nearly an hour. They pelted stones at two vehicles. They dispersed when the police arrived. Thirteen persons, including three shopkeepers, were arrested. They were identified as Sajjad Bhutto, Ashiq Mangi, Fayaz Khamisani, Abdul Hameed Soomro, Ghulam Rasool Makol, Anwar Chugtai, Abdul Rehman Lashari, Jamaluddin, Abdul Ghaffar and Mehrab Mughal. The strike remained successful in Dadu, Sanghar, Thatta, Tando Adam, Shahdadpur, etc. In Thatta, police arrested three JSQM activists. Two of them were identified as Urs Mallah and Saleem. Five youths were arrested in Dadu. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- WAPDA pays Rs1.5billion to NWFP ------------------------------------------------------------------- By Our Staff Reporter LAHORE, April, 17: For the first time, WAPDA has paid Rs1.5 billion cash to the NWFP government for adjustment of net profit on hydel power. In the past, the federal government used to adjust these profits against the liabilities of the provincial government. The WAPDA paid Rs1 billion in December 2000 and Rs500 million in January 2001 to the NWFP. This payment was made despite the fact that the federal and provincial governments owe Rs36,161 million to WAPDA at the end of February 2001 out of which Rs3,467 million are outstanding against the NWFP, provincial government agencies and domestic consumers of FATA, in the shape of unpaid bills. The accumulation of dues against the government agencies has worsened the liquidity position of WAPDA particularly in the backdrop of substantial increase in fuel prices and payment to the Independent Power Producers (IPP) during the current financial year that has cost the authority an additional burden of Rs18 billion. However, despite this financial crunch, WAPDA remains committed to paying the amount of Rs6 billion per annum to the NWFP, and the balance amount shall be paid by June 2001. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- Geelani returns to All Parties Hurriyat Conference executive council ------------------------------------------------------------------- By Jawed Naqvi NEW DELHI, April 17: All Parties Hurriyat Conference moved to avert a major schism among its key leaders on Tuesday, re-instating a pro-Pakistan member to its executive council , and inviting all the 23 plus constituents later this week to consider India's offer for reviving talks with it and other groups, its leaders said. APHC chairman Abdul Gani Bhat told Dawn from Srinagar that the executive council had met on Tuesday to consider the talks offer but ended with the reinstatement of Syed Ali Shah Geelani, the representative of Kashmir's pro-Pakistan Jamaat-i-Islami, who had been accused by the group of indiscipline. Mr Geelani had described the Kashmir issue as a religious one while the rest of the seven-member executive council had gone along recently with the view that the struggle was essentially a political matter, involving the right to self-determination of a people under the UN charter. "The issue of Mr Geelani was taken up and solved satisfactorily," Mr Bhat said. "He will now onwards attend the executive council meetings and contribute to discussions and the decisions." Mr Bhat had met Pakistan's High Commissioner to India Ashraf Jehangir Qazi in Delhi last week amid media speculation that talks were aimed at thrashing out the lingering rift within the APHC. It was not immediately clear if Mr Geelani's reinstatement was the result of that meeting. Meanwhile, a confidant of Mr Geelani and the executive member, Sheikh Abdulaziz, left on a self-declared private visit to Pakistan on Tuesday. The fact that PTV showed an entire documentary on Abdulaziz's life hours before he was due to have arrived on Tuesday, suggests that the visit would be a political event. "I am a politician. I have a political mission in life," Sheikh Abdulaziz told Dawn before his departure. "If there is a compulsion to help the cause of Kashmir out of a private visit to Pakistan, I cannot say no." There is thinking within the APHC that the group could be divided between those who have a passport to travel and those who do not. The former could be sent to conduct talks with interlocutors in Pakistan. The others could participate in the discussions with former defence minister K.C. Pant, India's nominee to kickstart talks on Kashmir. Mr Bhat declined to comment on the line of thinking but other APHC officials said the proposal would be considered at the expanded meeting of the APHC's working committee on Saturday and the larger general council meeting on Monday. Mr Bhat said he could not recall when or if the last APHC general council meeting, comprising all the constituents, had met. He said the working committee had met once sometime last year after he was elected the APHC chairman. Some clue about the move ahead, if any, was given by Maulvi Abbas Ansari, another executive council member, who did not attend Tuesday's meeting: "We never said the guns could solve the problem of Kashmir. We have always believed that the only lasting solution will come through a dialogue. But this offer of talks is a dhoka (treachery)," he told Dawn. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- 52pc bottled water unfit: report ------------------------------------------------------------------- By Khaleeq Kiani ISLAMABAD, April 17: Over 52 per cent of the branded and bottled mineral water available in the market is unsafe for human consumption, a laboratory analysis of the federal government revealed. "Only 10 out 21 brands were found safe for human consumption and the remaining 11 brands were found unsafe/unfit for drinking," said the laboratory report of the Pakistan Council of Research in Water Resources (PCRWR). The PCRWR prepared the report after a random collection of samples of the bottled mineral water marketed by 21 renowned brands in Rawalpindi and Islamabad, though these companies have a distribution network throughout the country. The local administration, led by a magistrate, the Consumer Rights Commission of Pakistan and the Food Control Authority were also involved in the sample collection and finalization of the report. The report, prepared under the instructions of the federal minister for science and technology, Dr Attaur Rehman, and submitted to him early this week, came following some reports that most of the bottled mineral water in the market was unsafe and hazardous and subsequent suo motu action taken by the Lahore High Court. Official sources told Dawn that samples of mineral water had been obtained from different shops and stores which had been sealed in the presence of the magistrate before being taken to the water quality lab of the PCRWR. "Samples of 21 brands of bottled mineral water currently being marketed were collected and analyzed. In order to verify the results of water analysis conducted at the PCRWR lab, these samples were also got analyzed by three other reputable laboratories in Islamabad," said the report. "The unfit brands also include a brand claimed to have been imported. In some samples variation in labelled and actual values in the range of 99 to 1,067 per cent was detected," said the PCRWR report. The PCRWR has been directed by the minister to continue the analysis of mineral water on a six monthly basis. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- World Bank curtails $100million soft loan to Pakistan ------------------------------------------------------------------- By Our Staff Reporter ISLAMABAD, April 17: The World Bank has curtailed $100 million soft loan to Pakistan's $785 million National Drainage Programme (NDP) due to slow-paced institutional reforms and some unapproved schemes, official sources told Dawn. A bank mission led by Sakwa Bunyasi that spent around three weeks in Pakistan for the mid-term review (MTR) of the project has conveyed its decision to the relevant authorities. The mission has submitted its initial MTR report to the federal government, these sources said. The bank has refused to accept Punjab's Rs3 billion scheme for canal lining besides a couple of small dams both in Punjab and NWFP costing over a billion rupees. It also refused to involve Azad Kashmir in the drainage programme because the three issues were not directly covered by the World Bank approved plan of action. The bank has submitted two different scenarios for slashing its $285million soft-term financing. "$100million is the minimum cut conveyed by the Bank but this cut can go much higher", said these sources. The bank has expressed concern over unilateral alteration in the investment priorities taken up by the Punjab government despite its repeated warnings. As a result reform programme specified under the project is not visible on ground. Similarly, Balochistan has also given in writing it was pulling out of the programme and obviously the allocation for Balochistan was also withdrawn, sources said. The physical (institutional reforms) and fiscal progress (investment component) on the project is just 20 per cent and 17 per cent respectively as yet against the target of 50 per cent while half of the six and half year period of the NDP has already passed. "No new core project envisaged under the investment component of the NDP has yet commenced at site except Left Bank Out fall Drain (LBOD) remaining works and eight operation and maintenance performance contracts in Sindh. During the previous two years, major part of the works carried out by the provinces had been of the type of O&M crash programme and rapid rehabilitation of canals and drains. The delay in commencement of main steam/core sub- projects was partly due to changing priorities on the part of provinces and partly due to lack of flexibility/availability of project formulation resources with PDC (design and supervision consultants)", said an official document related to MTR. The 54-month NDP, launched in January 1998, has an estimated cost of $785million including donor contribution of $525 million. The world bank is providing $285million on soft-term 0.75 per cent service charges. ADB has a share of $140million at one per cent interest while Japan Bank for International Cooperation (JBIC) is contributing $100m at two per cent interest rate. "The interest free aid of $525million that was secured after close competition from Indonesia and India a few years back is in real problems just because of inefficiency and critical role played by a few provincial officials. It is unfortunate that Pakistan is going to loose $100million soft aid at a time it desperately needed foreign exchange for balance of payment support", said a senior official at the water and power ministry recently. "When the world bank cuts its share, it set a precedent for other contributing partners to follow and it is going to be a serious setback for Pakistan's reforms programme and performance credibility", said the official but added that luckily it did not happen so far. With 40 per cent share in the programme, Punjab was well on schedule till a year back but new bureaucratic set up in the province has put the programme in the reverse gear, said these officials. While all the provincial governments had introduced laws to establish Provincial Irrigation and Drainage Authorities (PIDAs), they failed to constitute area water boards and farmers organisations to implement and run the programme on self sustained basis. The $785m NDP envisaged $699m investment component, $35m institutional reform component, $27million sector planning and research component and $24m programme coordination and supervision component. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- More duty-free items in next budget ------------------------------------------------------------------- By Ihtashamul Haque ISLAMABAD, April 17: The government is reviewing baggage rules to allow overseas Pakistanis to bring with them more items free of duty. "We plan to make the existing baggage rules more flexible for the overseas Pakistanis so that they can bring more duty-free goods," said Minister for Finance Shaukat Aziz. Talking to Dawn here on Tuesday he said a good number of items will be added to the list of duty-free items. "It is a budget issue and will be made public in the budget for 2001-2002, " he further stated. The finance minister pointed out that maximum possible facilities and incentives would be offered to overseas Pakistanis so that they could invest in Pakistan and, at the same time send their remittances through normal banking channels instead of the infamous hundi. He said there has been a 20 per cent increase in remittances this year and, "we are further expecting a breakthrough in it." These remittances have increased from US$1 billion to 1.2 billion this year, which shows an encouraging trends, he added. He conceded that it was still a difficult task to restore the confidence of the overseas Pakistanis, since the previous government froze foreign currency deposits in May 1998. In this regard he referred to the recommendations of the Task Force on Overseas Pakistanis, which, he pointed out, will be implemented to attract investment by the overseas Pakistanis. Responding to a question, the minister said the government was expecting to initially attract 20 to 25 per cent new investment next year. "Yes it is true that our overseas Pakistanis' annual income is over US$60 billion which is equivalent to our Gross Domestic Product (GDP)," he said adding that the government will soon be promulgating an ordinance to ensure protection to the overseas Pakistanis' investment and their bank deposits. Asked what new opportunities were being offered to overseas Pakistanis to invest in various fields, the finance minister said that Board of Investment (BoI) had been directed to work out details in this regard. "A real one window operation is being ensured by the BoI," he said. Similarly, he said that the role of the embassies was being enhanced to help extend all possible cooperation to overseas Pakistanis. "Now our embassy staff will have to be responsible people, and in case they do not perform their duties according to the satisfaction of the overseas Pakistanis, they will be recalled," he warned. To another question he said that laws were being made stringent to discourage transfer of remittances through hundi system. "But we are primarily focussing on improving the performance of Pakistani banks aboard," he added. He said there was no Pakistani bank in Saudi Arabia due to Saudi laws and that was why the government has decided to work through a Saudi bank to ensure speedy transfer of remittances from there. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010417 ------------------------------------------------------------------- WAPDA seeks Rs10 billion as GST compensation ------------------------------------------------------------------- By Khaleeq Kiani ISLAMABAD, April 16: The Water and Power Development Authority has demanded over Rs10 billion from the government as advance compensation for the general sales tax it will pay during fiscal year 2001-02. Power utilities, WAPDA and the Karachi Electric Supply Company (KESC), are required to pay 15 per cent general sales tax (GST) to the central board of revenue (CBR) on electricity they sell to the end-consumers. The utilities also compensate independent power producers (IPPs) for their GST payments. Under a federal government decision taken last year, the ministry of finance was required to release funds to meet the shortfall for each financial year in advance on account of domestic, agriculture and commercial consumers up to 500 units due to imposition of GST where WAPDA revenue was decreased by 15 per cent for the protected categories. WAPDA has now told the federal government that it is facing losses on account of the GST during the ongoing fiscal year. Early this month, the utility complained to the chief executive that the finance ministry had withheld its Rs5.4 billion under the GST head and instead deducted around Rs2 billion as debt servicing liability. To avoid repetition of this situation and protect its financial position in the upcoming fiscal year, WAPDA has asked the center for a Rs10 billion budget provision in the fiscal year 2002 to compensate it in advance on account of protected consumer categories. The amount has been calculated on the basis of six per cent growth in power sale. WAPDA estimated that it would face an average loss of around Rs1 billion every month which should be paid in advance. Under the IMF-sponsored GST mechanism, IPPs are required to pay the GST to the CBR when they sell power to utilities and are compensated when they get energy payments from utilities. The utilities are also responsible for GST collection on electricity they sell to consumers. However, in real terms the consumers are protected from GST payment but utilities have to make GST payments to the CBR. At the time of GST imposition early last year, power utilities were promised that the finance ministry would compensate them through a revolving fund so as to save them from the negative financial impact of the GST. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010417 ------------------------------------------------------------------- All Parties Hurriyat Conference sees little hope in talks ------------------------------------------------------------------- By Jawed Naqvi NEW DELHI, April 16: A much publicised Indian move to revive talks with Kashmiri groups could end up as a public relations drill by New Delhi to fulfil recent assurances it gave to worried leaders of Iran and the United States, analysts and news reports said on Monday. They said a proposal announced by former Indian defence minister K.C. Pant on Sunday to invite the All Parties Hurriyat Conference to talks headed by him offered little realistic hope to resolve the festering issue with either Pakistan or Mujahideen groups in the valley. APHC officials said the group's executive council would meet later this week to give a formal response to Mr Pant's offer to hold the proposed talks in tandem with other Kashmiri groups, a possibility that has already been rejected by APHC chairman Prof Abdul Gani Bhat as "an unavoidable crowd." Prof Bhat was not available for his comment to Dawn on Monday. But he told PTV in a telephone interview from Srinagar that the proposed talks to be headed by Mr Pant would not succeed. Among the reasons he gave for his fears was the perception in Kashmir that restoration of peace in the Himalayan region the ostensible goal of the talks was not possible without addressing the issue as a dispute involving the Hurriyat, Pakistan and India. "If India wants to hold the talks under Indian constitution which regards Kashmir as an internal matter, then we are not hopeful of making any headway," Prof Bhat said. "If there is no scope for expressing the issue as a quest for self-determination of Kashmiri people, then the whole exercise is futile." Among the possible reasons being considered for Mr Pant's announcement is the timing of it, just a day before a potentially turbulent parliamentary session. Moreover, the start of summer in Kashmir is always worrisome for the Indian forces manning the LoC which becomes even less manageable as the snow begins to melt. Besides, internationally Kashmir is seen as a potential flash point between two uneasy nuclear neighbours. Official sources said the issue was discussed in Washington and in Tehran when the Indian foreign minister and the prime minister went calling on the leaders there recently. New Delhi is believed to have given its standard reply to the eager queries that the matter was going to be resolved through dialogue. "The latest so-called talks offer is precisely that," said one exasperated APHC leader. "When we want to suggest something the doors are slammed on our faces. And suddenly there is this. And that too so soon after the tall promises." The reference was to Prime Minister Atal Behari Vajpayee's unilateral cease-fire offer in November last year, a move that had also raised hopes within the APHC of likely travel to Pakistan to talk both to the government and the leaders of Mujahideen groups there. But despite all the misgivings surrounding New Delhi's move in Kashmir there was no emphatic or clear answer from the APHC as to whether the group would eventually join the talks with Mr Pant or not. If anything, perhaps something could yet be discerned from a few straws in the wind from recent remarks by Prof Bhat to Dawn. "Here are three parties to the dispute," he said last week. "India, Pakistan and people of Jammu and Kashmir. If two out of three start talking where do they reach? No nomination of a key negotiator, no talking with a crowd will carry any of us anywhere. We will have to rise above intransigence, above arrogance. And prove with courage, wisdom and pragmatism to finding durable solution of the problem of Kashmir. "This requires involvement of India, Pakistan and the APHC as a political forum representing the sentiments and the political aspirations of the people of Jammu and Kashmir," he said. "We will have to recognize the sombre political realities as well as understand the dynamics of the situation obtaining across the subcontinent. And engage in a positive political dialogue, not for the pleasure of it but for achieving a result in terms of a final resolution of the Jammu and Kashmir problem. "This is the reason that we propose that we undertake the visit to Pakistan which the government of India accepted a genuine effort on our part to consolidate the peach process so much so that the PM made statement on Jan 21, 2001, that there will be no delay now in the issuance of passports. The statement issued (about Mr Pant's talks offer) seems to be an attempt to block the trip by Hurriyat to Pakistan, which is probably tantamount to derailing the peace process coupled with generating mistrust." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010417 ------------------------------------------------------------------- Five accords signed with Morocco ------------------------------------------------------------------- ISLAMABAD, April 16: Pakistan and Morocco on Monday signed five agreements of co-operation to strengthen their relations in the fields of economy, shipping and tourism. Moroccan Prime Minister Abderrahaman Youssoufi and Chief Executive Gen Pervez Musharraf were present on the occasion. The two leaders earlier held wide-ranging talks on bilateral, regional and international issues. The five agreements inked between the two countries included agreement on establishment of Joint Ministerial Commission (JMC) between the governments of the Islamic Republic of Pakistan and the Kingdom of Morocco. Commerce Minister Abdul Razzak Dawood and Moroccan Minister for Economy and Planning Abdel Hamid Aouad signed the agreement on JMC on behalf of their countries. The agreement on Merchant Shipping and Related Maritime Matters was signed by Moroccan Minister of Transport and Merchant Marine Abdeslam Znined and Federal Communications Minister Lt-Gen (retd) Javed Ashraf. The third agreement on Protection and Promotion of Investment was signed by Commerce Minister Razzak Dawood and Mushtapha Mansouri, Morocco Minister of Industry, Commerce, Energy and Mines. The MoU for bilateral consultations between ministries of foreign affairs of Pakistan and Morocco was inked by Foreign Secretary Inamul Haque and Mohamed Rchad Bouhlal, Moroccon General Secretary of the Ministry of Foreign Affairs and Co-operation. The agreement on tourism was signed by Abdel Hamid Aouad of the Ministry of Planning and Economy of Morocco and Samin Jan Babar, Federal Secretary for Culture and Tourism. Under the JMC, the two sides would discuss the whole gambit of bilateral relations with special emphasis on trade, economic and merchant relations between the two countries. Talking to APP after the signing ceremony at the Chief Executive's office Director (Africa) Manzoor-ul-Haq said the agreement on Merchant Shipping will provide free access to each others vessels. The agreement on protection and promotion of investment will facilitate investment in the two countries. Under the MoU for bilateral consultations, he said the foreign secretaries of the two countries would annually meet in Islamabad and Rabat to discuss ways for promotion of their bilateral ties in various fields. The agreement on tourism will help promote tourism between the two sides, he added. -APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010415 ------------------------------------------------------------------- Musharraf suggests job-oriented schemes ------------------------------------------------------------------- By Habib Khan Ghori KARACHI, April 14: Chief Executive Gen Pervez Musharraf on Saturday inaugurated the ambitious programme for economic revival of Karachi and pledged to restore the past glory of the city and to transform it into an international hub of economic and commercial activity. In this connection he suggested nine preferences for the metropolis with priorities for the construction of Right Bank Outfall Drain (RBOD) to take the affluent to sea, the 100 mgd K-3 bulk water supply scheme for Karachi and the Northern Bypass. Gen Musharraf made this announcement at a function held at the Governor's House and attended by the elite of the city. He referred to the speeches made by the Sindh Governor Mohammedmian Soomro, Finance Minister Dr Abdul Hafiz Shaikh and Vice Chairman EDC Shahid Feroz and said that every one present at the occasion shared the emotions and he himself stood motivated. He said the issue of revival of economy and creation of Economic Development Council was too important for everybody present there. Gen Musharraf said that the situation in Karachi and Sindh was the same as in other parts of the country and declared: "We all will join hands to put the pieces together not only in Karachi and Sindh but also in the whole country. "I am very sure that with the conviction and sincerity we have, and the cooperation between the provinces and the Centre I have no reason and even doubt that we will not succeed in doing this." Recalling the history of Karachi as an economically prosperous city, he said it had been the heaven for the investors, commercial heart of Pakistan and the city for the rich and the poor, and that was the beauty of this metropolitan city. But unfortunately and very sadly in the past decade the policies of the governments had brought miseries, deprivation, despondency to this once most lively metropolis. He said this situation could not be allowed to persist. "This is our city. This is my city. This is your city. This is the city of Quaid-i-Azam and therefore we have to bring order into its civic structure. Terming the creation of the EDC a wise initiative the chief executive said this will certainly be remembered as a work of its kind but will also provide a lead to others to emulate. Their ideas will certainly optimize the intrinsic talents and skills of Karachiites for their own benefits and prosperity, specially the prosperity of teeming millions of Karachi. He noted with appreciation that the Sindh government has accelerated the process of Master Plan for Karachi and hoped that this will meet the aspirations of citizens and will make it a modern, efficient, progressive and a vibrant city. This revival of the Master Plan, he hoped, will regain for Karachi its lost status. He assured as maximum support by the central government for the plan and the EDC and pointed out that the real solution lies converting Karachi into a Hong Kong where every house is a cottage industry. However, he said, he would give priority to look after the poor of Karachi. "We owe it to them and to the teeming millions, some of whom may not be getting two square meals every day. "We owe to these poor people to improve their lot," he said adding that ameliorating conditions of the poor, means getting them job opportunities. Gen Musharraf said the solution to this problem was not to create jobs in both the public and private sectors but to generate more economic activity. While we try to generate economic activity to increase the industrial growth in Karachi and elsewhere to generate jobs for the poor, the real solution lies in really converting Karachi into a Hong Kong where the individual, every house, every family becomes the part of a cottage industry within the city. He said while our main source of export being textile, we could talk of producing buttons and small things like zippers, hangers, plastic bags, cosmetic, lamps and shades, embroidery, plastic goods- these are the areas where we need to open training centres for the poor in these skills and then providing them with loans to open business houses themselves, the cottage industry in their own homes. He said this is one of the areas which can provide economic prosperity to the people of Karachi. Besides, he pointed out, the slums of Karachi needed respectability by developing low-cost housing schemes which are generally ignored. He said that this subject was discussed in Islamabad and the Sindh government will get involved in more details in these housing schemes for the poor of Karachi.
BUSINESS & ECONOMY 20010420 ------------------------------------------------------------------- WAPDA, KESC demand share: Sick units sale ------------------------------------------------------------------- By Khaleeq Kiani ISLAMABAD, April 19: The power utilities WAPDA and KESC have demanded share from the sale proceeds of around 868 private sector sick industrial units the Corporate and Industrial Restructuring Corporation (CIRC) starts selling this month. "WAPDA and KESC, being the utilities of national importance, be given top priority for giving share from the sale proceeds of the sick units against the outstanding bills," said chairman WAPDA Lt- Gen Zulfiqar Ali Khan, in a letter to the federal finance secretary. In his clear disagreement with the decision of the finance ministry and subsequent approval of the chief executive on March 9 this year, the general said: "It is clear that the decision is going to aggravate the financial position of WAPDA." On a presentation from the finance ministry and the CIRC on March 9, the chief executive approved that "once the non- performing assets are sold by CIRC, the tax collecting agencies of the government, like the CBR and WAPDA, should only charge their principal outstanding amounts and not the accumulated penalties". The decision entailed waiver of late payment surcharge, running into billions of rupees the utilities were entitled to get from consumers. The WAPDA chief demanded that this decision should be reconsidered and withdrawn. "If this surcharge is to be waived off, then the mechanism for compensating WAPDA may also be communicated," said the WAPDA chief. In a rather complaining tone, the WAPDA chairman listed at least six areas, where the utility lost around Rs35 billion for upholding goodwill of the military government, socio-economic uplift and financial viability of various sectors without any compensation from the federal government in return. The chairman complained that firstly the stuck up amount of WAPDA's dues affected its liquidity position, secondly the deprival from the amount of interest that could have earned on this amount and now the waiver of late payment surcharge, all adding to its woes. The WAPDA has also warned that it would not be able to comply with cash liability obligations like payments to oil and gas companies and independent power producers (IPPs) and maintain its system to let the power reach its customers, if the cash scarcity continues. The chairman said the two relief packages, provided by the utility on the government's promise of compensation, for agricultural and industrial sectors that resulted in bumper wheat crop and huge foreign exchange saving, cost it Rs4 billion but the government did not honour its commitment of compensation. Another Rs2.4 billion loss due to fuel price increases during 1999- 2000 were not passed on the consumers to maintain electricity prices for upholding the goodwill of the government among the general masses. "On direction from the government, the arrears of FATA, AJ&K and agricultural tubewells of Balochistan pertaining to the period prior to 01-01-99 to the tune of Rs8.72bn were written off without any compensation to WAPDA," said the chairman. During fiscal year 2000-01, the successive increase in fuel prices, devaluation of Pak rupee, settlement of Hubco/ Kapco case and reduced hydel generation imposed a huge financial burden of Rs14.4 billion. "Consequently, Nepra was requested to allow an increase of 98 paisa per KWh which was not hitherto granted. Instead minor increases at paisa 13/KWh in Sept 2000 and paisa 8 per KWh in Dec 2000 for selected categories of consumers were granted. However, these meagre increases are of no reasonable help to WAPDA", the WAPDA chief noted. WAPDA said in accordance with the decision of the chief executive on June 29, 2000 and updated on August 10, 2000, the federal and Balochistan governments were required to pick up the amount of subsidy of agricultural tubewells over and above Rs4000 on 50:50 basis. The decision was changed in a meeting at the chief executive's office on February 20, 2001 and instead WAPDA was directed to pickup the subsidy over and above Rs6000 to be paid Rs4000 by the customer plus Rs2000 by the Balochistan government. The chairman also expressed his displeasure over direct communications from the ministry of finance and said, "it would be appropriate if such matter is routed through the ministry of water and power, which is the relevant ministry for this purpose." Established in September last, the CIRC identified 868 sick industrial units in the private sector, having loans to the tune of Rs107 billion from six state-owned banks and development financial institutions like National Bank of Pakistan, United Bank, Habib Bank, Industrial Development Bank, National Development Finance Corporation and Agricultural Development Bank. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010420 ------------------------------------------------------------------- Economic growth seen below 5%: Asian Development Bank report on Pakistan ------------------------------------------------------------------- ISLAMABAD, April 19: The Asian Development Bank on Thursday projected economic growth of less than five per cent for Pakistan for the fiscal year to June 2002, mainly because of a slowdown in agriculture. The bank said in its 2001 Asian development outlook that drought and a shortage of irrigation water caused the slowdown. Finance Minister Shaukat Aziz said this week the water shortage is forecast to knock $1.1 billion off the country's GDP during the 2001 crop year, which runs from April to November, as crop yields shrink and imports of fuel oil to generate thermal power rise. The country has already scaled back growth in its gross domestic product (GDP) to 3.8 per cent from a targeted 4.5 per cent for the fiscal year to June 2001. Aziz also warned that the drought would increase pressure on Pakistan's balance of payments by around $1 billion and contribute to a widening trade gap due to higher commodity imports and fewer exports. INFLATION: ADB said Pakistan's inflation was also expected to rise to six per cent in fiscal 2001/02 as the government passes on to consumers delayed increases in energy prices and the effects of the recent depreciation of the rupee. Pakistan's rupee hit record lows against the dollar in March and April on debt servicing payments and the government has recently raised energy prices as agreed with the International Monetary Fund under a $596 million standby loan programme. The bank said Pakistan would have to work hard to keep its budget deficit to 5.2 per cent of GDP, another key target agreed with the IMF. "To ensure that the target of reducing the deficit to 5.2 per cent of GDP in 2001 is met, strict implementation of the new revenue measures is essential," the report said. "In addition expenditure controls must include containment of defence spending as well as targeted spending cuts if revenue collections lags," the report added. Pakistan also faces a huge debt burden which the government says has reached "unsustainable levels" and is seeking exceptional assistance from its donors. Already, the World Bank and the Asian Development Bank, along with the IMF, are extending some loans. The bank said additional debt relief was crucial for Pakistan. "But further assistance from the IMF, which is scheduled to be provided in the later half of 2001 in the form of a Poverty Reduction and Growth Facility loan, depends on the progress of the government's structural reforms, including trade liberalisation measures to boost foreign exchange earnings," it added. The report said gross official reserves fell by nearly half from $1.7 billion in 1999 to less than $1 billion in 2000, or about four weeks worth of imports of goods and services. "The economy's foreign exchange requirements are still large and further debt relief is critical," it said. Due to an extended period of poor economic performance, poverty had soared from below 18 per cent of the population in 1998 to more than 32 per cent in 1999, it added. "Longer term, additional reforms to reduce the fiscal deficit or to increase government capacity to facilitate social development is essential," it said. "The economy is in a slump and at the same time the policies that have to be followed are contractional, reducing the fiscal deficit," Naved Hamid, senior economic adviser for the Pakistan mission of the ADB, said. "But unfortunately that is the reality. When it would have been easier to do it, it wasn't done. Now there doesn't seem to be any way out," he told a news conference following the release the bank's annual development outlook for Asia. ADB officials acknowledged the restructuring was painful but said they were confident that whatever government emerged after the end of military rule, promised for late 2002, would stick to the reforms. Hamid said if reforms are carried through noting previous Pakistani governments had failed to honour commitments the country could find itself growing fast enough to handle its debt problems in five years. Pakistan faces a huge debt burden about $37 billion foreign debt and similar levels of domestic debt which the government says has reached "unsustainable levels". But the ADB report warned that further IMF assistance depended on carrying out structural reforms, including trade liberalization to boost foreign exchange earnings.-Reuters/ AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010419 ------------------------------------------------------------------- Morocco for joint business council: Youssoufi visits FPCCI ------------------------------------------------------------------- By Aamir Shafaat Khan KARACHI, April 18: Prime Minister of Morocco, Abderrahman Youssoufi has stressed the need for setting up a joint Pakistan-Morocco business council as an instrument to work regularly in a complementary framework in translating the objectives of businessmen into real projects. Addressing the members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at the Federation House on Wednesday, he said it was the right time to set up the council in view of the vital role of the private sector in activating the productive mechanism and encouraging trade exchanges between the two countries. Our two countries, he said, possessed great human and material potentials and our companies and institutions enjoyed expertise and technical know-how which had enabled them to rival the international companies in several specialities. The Moroccan prime minister invited the businessmen of the two countries to explore the existing opportunities in several sectors so as to raise the volume of bilateral trade and consolidate economic relations, which had remained below the level of our political relations, our aspirations and common objectives. He also invited the Pakistani companies to explore the Moroccan market by participating in the international bidding and the exhibitions organized in the kingdom to promote their products or through the establishment of a co-operation partnership with their Moroccan counterparts. Abderrahman said that both the countries shared a common destiny in facing the challenges and constraints of the globalisation process. He said that emergence of the so-called "new economy" based on information technologies gave, in this equation, prior advance to the rich north over the poor south whose most countries still suffered from their prevailing indebtedness and their chronic economic and social hardships. The eventual inability of these countries to cope with this new element might lead to their marginalization and exclusion, he added. He said political and economic stability and its geographical proximity to the EU countries had made Morocco to become one of the most attracting poles for foreign investments in North Africa and the Mediterranean region. Earlier, the Moroccan prime minister, accompanied by a high-powered delegation, also visited the headquarter of the Islamic Chamber of Commerce and Industry (ICCI). ICCI's secretary general, Aqeel A. Al-Jassem, informed the delegation that the forthcoming eighth private-sector meeting of the ICCI would be held in Guinea from October 9 to 11. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010419 ------------------------------------------------------------------- IBRD team wants sugar industry relocation ------------------------------------------------------------------- By Our Staff Reporter KARACHI, April 18: By bringing down the cost of production of sugarcane, the industry which started as an apparatus of import substitution could now become an engine of export-based growth. These observations were made by the Pakistan Sugar Mills Association Sindh zone representatives in a meeting with a team of World Bank officials, on Wednesday. However, the WB officials opined that the sugar industry, by its current cost structure, and assessing the need for cultivation of crops other than cane, did seem quite suitable for Pakistan. They suggested that at least its relocation, besides more concerted efforts, were overdue to give a shot in policy and performance to prove its economic utility and viability. Responding to the WB officials' observations the PSMA-SZ representatives explained that the role of sugar industry as the sole catalyst of rural transformation due to its locational imperatives has not been precisely understood by the economists in the country and similar seems to be the case with, even the World Bank experts. The sugar industry, it was explained, provides direct and indirect employment to about 1.350 million persons majority of it hailing from the rural land mass. Sugar industry brings urban, rural divide closer by giving socio-economic sectoral upliftment to otherwise, the ignored agricultural hinterland of Pakistan. Despite distinct deterrent of inadequate sugarcane supply, they said the industry per annum on an average was generating Rs71 billion of revenues in the gross domestic product, with Rs37 billion directly flowing in the form of cane price to the farmers. Similarly, they said that the state exchequer was getting Rs6 billion in form of sales tax alone from sugar, an essential food item which merit to be exempted. Sugar industry's value addition was worth Rs34 billion and it carries 2.5 per cent weightage in GDP, 15.8 per cent in manufacturing and 3.8 per cent in employment. The PSMA-SZ further pointed out that the potential held by the industry was to double its current contribution, provided sufficient sugarcane supplies were lined up for processing. Without putting any additional rupee as further fixed capital outlay, this industry possessed capacity to crush 62 million tons of cane a season just in 160 days and fetch 5.30 million tons of sugar at a prevalent low average of 8.7 per cent recovery. With recovery improved by 9 to 11 per cent sugar production could be raised to 5.58 to 6.82 million tons. Therefore, they said the focus of attention and efforts ought to be in the direction of better economic performance, with core area being reduction in the cost of production so that the industry could work as an engine of export-based growth. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- CCOP okays sale of 10pc National Bank of Pakistan shares ------------------------------------------------------------------- By Ihtashamul Haque ISLAMABAD, April 17: The Cabinet Committee on Privatization (CCOP) here on Tuesday approved the disinvestment of 10 per cent shares of the National Bank of Pakistan (NBP). The meeting which was a chaired by the Minister for Finance Shaukat Aziz decided that Overseas Pakistanis would be offered incentives to take part in the privatization of 10 per cent shares of the NBP. The objective of disinvesting 10 per cent shares of the NBP, the meeting was told, was to induct corporate culture, mobilize savings and broaden ownership. The Privatization Commission has already announced the disinvestment of 5 per cent shares of the National Bank. The officials of the PC when contacted said that Overseas Pakistanis will bid for the NBP by offering to pay in foreign exchange and that was why they would be encouraged to participate in the this public offering. "There will be more privatization and offering pubic shares to the overseas Pakistanis in various other state enterprises including nationalized commercial banks (NCBs) and the development financial institutions (DFIs)", a source said. He added the special instructions had been issued to the Privatization Commission by Chief Executive Gen Pervez Musharraf to accord priority to disinvesting state sector to the overseas Pakistanis. The CCOP also approved re-bidding of the machinery of Lasbela Textiles as the results of the first bidding were considered unsatisfactory. The meeting was told that an agreement for appointment of a Financial Advisor for Karachi Electric Supply Company (KESC) was expected to be finalized within this week. The Asian Development Bank (ADB) and the Privatization Commission would share the cost of the financial advisory services. The ADB has already approved $250 million for the restructuring of the KESC to remove its 30 per cent losses and other undue administrative expenditures before its privatization. CCOP advised the creation of enabling environments to facilitate the expeditious privatization of Fisalabad Electricity Supply Company (FESC). It authorized the financial institutions holding shares in Pakistan Industrial Credit & Investment Corporation (PICIC) to divest their respective shares in their best interest. Sources said the meeting could not decide to return money to the buyers of Federal Lodges 1 to 4 in Murree. These lodges had been be disinvested to the buyers but they were handed over to him. Minister for privatization was present during the meeting. The representatives of respective ministries and departments also attended the meeting. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010418 ------------------------------------------------------------------- SBP sells bonds worth Rs11.2billion ------------------------------------------------------------------- By Mohiuddin Aazim KARACHI, April 17: The State Bank on Tuesday raised Rs11.24billion long term funds through sale of Pakistan Investment against the pre-auction target of Rs12.5billion. In the last auction held on February 13 SBP had raised Rs15.5bn by selling these bonds-almost double the target of Rs8billion. Bankers say what has dampened the demand for these bonds is the fact that the money market has become tighter and the yield on Treasury Bills has risen sharply since February 13. The market was tight of liquidity also on Tuesday and banks to borrow about Rs2bn from SBP overnight. "The corporate purchased about Rs9bn worth of bonds. The rest were consumed by some local private and foreign banks," said treasurer of a leading bank. The bonds that offer 12.5% return for three- year; 13% for five year and 14% for ten year are no more as lucrative for fund managers as they were two months ago. That explains why Tuesday auction could not attract more of corporate bids for the bonds. In contrast the same thing attracted the interest of banks in these bonds. Bankers said since corporate had started feeling that the return on the bonds should be higher than the present levels they are willing to buy the same on discount and not at par or above par value. And since the State Bank is not ready to sell these bonds on discount such corporate look towards smaller banks. These banks buy the bonds at par or above par value from primary dealers or designated banks and sell the same on discount to the corporate. The same thing happened on Tuesday. >From amongst the corporate fund managers that bought the bonds directly from primary dealers State Life Insurance Corporation was on the top of the list. Others were Pakistan Telecommunication, Workers Welfare Fund of the federal government, National Insurance Corporation, Karachi Port Trust, Employees Old Age Benefit Institution and National Fertilizer Corporation. Banker said State Life alone bought Rs2.5bn worth of bonds. The auction of bonds had generated bids worth Rs13.2bn of which SBP accepted bids worth Rs11.2bn and scrapped the rest. SBP said it sold Rs534m three-year bonds at a little above-par value (four paisa premium on each one hundred rupee of bonds). The central bank sold Rs1.12bn worth of five-year bonds and Rs9.58bn worth of ten year bonds at par value. Since the government borrowing through Pakistan Investment Bonds is treated as non-bank borrowing the sale of Rs11.24bn worth of PIBs on Tuesday means the government would be able to cut its bank borrowing without getting into trouble. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010417 ------------------------------------------------------------------- Exporters assured financial assistance ------------------------------------------------------------------- By Parvaiz Ishfaq Rana KARACHI, April 16: The State Bank will extend all sort of assistance for the promotion of exports and if needed it will evolve new method also, to compensate concessional financing of export trade. This assurance was given by the chief manager credit SBP Liquat Durrani to the participants of a meeting of Credit Advisory Committee of SBP held here on Monday. Sources privy to the meeting said that the SBP chief was all-out in support to export sector on credit and said the central bank would not hesitate in obliging exporters for making their products competitive in the world market. A participant quoted the SBP official as having said, "the central bank will look into the matter industry-wise for extending export finance" and assured the participants of removing all irritants hurting or creating problems in various export sectors. Business representatives in the meeting, however, strongly agitated over the prevailing high mark-up rates and the unwillingness of the nationalized commercial banks (NCBs) in providing the urgently needed funds for the process of balancing, modernization and replacement (BMR) of textile industry. "Mark-up rates are being globally slashed for providing an impetus to the slow moving economies of the industrialized countries," he said adding "but the measures being taken in our country are further dampening the investment climate." The APTMA representative complained about the non-availability of funds from the banks required for BMR purpose by the textile industry, ahead of removal of quotas by the year 2004. "Only those companies having good financial health are being obliged by the banks, while the while the remaining 80 per cent of units are being deprived of the much-needed funds to compete in free world markets," he asserted. Responding to the complaint, the State Bank official asked the FPCCI and the APTMA to form a joint body which could submit proposals and guidelines to overcome the problem. The issues of non-payment of sales tax and rebates also came up for discussion in the meeting. Business leaders claimed that over Rs10 billion were presently stuck-up with the CBR, creating liquidity problem for trade and industry. There was a strong demand from the business leaders that the banks should be asked to adjust such held-up funds against government dues after getting them verified from their respective authorities. However, the SBP credit chief asked the representatives of banks to maximise their efforts for the promotion of Information Technology (IT) and suggested that all banks should hire the services of IT experts so that any proposal coming for funding of IT could be vetted by them. The SBP official informed the participants that suggestions with regard to export finance had been sought from the FPCCI and other trade bodies but no replies had yet been received except from the tanners association. A number of other matters also came up for discussion but much of the concentration remained around mark-up, funding needs for BMR of textile industry and the IT industry. Without directly giving approval to the proposals submitted by construction industry, the SBP official said that the central bank would carry out a study in this regard in consultation with the commercial banks. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010417 ------------------------------------------------------------------- Foreign banks focus on consumer banking ------------------------------------------------------------------- By Jawaid Bokhari KARACHI, April 16: Hit by freezing of foreign currency accounts and low- profile support from their head offices, some large foreign banks have re-positioned their business. Their focus is now on mobilization of rupee deposits and risky but more profitable consumer banking. Sources said marginal improvement in the economic situation is now encouraging them into new avenues of business. Some of them are venturing into middle market (for raising deposits) that has been the preserve of the local peers, a deviation from corporate and consumer banking, the upper and the lower segments. They are extending their operations to cash management business and investment advisory services, including acquisition and mergers. So far the banks have had clearly defined market niches. The NCBs and privatized banks catered to the government and deposits from public sector units. Foreign banks' business focussed on corporate clients (MNCs) and high net individuals and the public and private sector banks catered to the large domestic market, including the middle market. With the loss of dollar deposits, after the freezing of FCAs in May 1998, the foreign banks became wary of the general economic environment. They also complained that the effective rate of taxation was very high. Income tax authorities do not accept what the State Bank prescribes in respect of the non-performing loans. Some foreign banks left the market and some downsized their operations. In the face of intense competition among 49 commercial banks, operating in Pakistan, foreign banks appeared, for sometime, to have left the field open to the nationalized and privatized banks. The professionals from the foreign banks, who then headed the NCBs were able to attract accounts of multinationals primarily because of their large deposit base and their ability to lend big sums of money. The situation is changing now. With exposure to crisis ridden NCBs, some professionals, back in foreign banks, are much more wiser to handle the ground realities. Their quality of management has improved. Foreign banks, which have the advantage of global reach, professional management and sophisticated technological system, are making efforts to dip deeper into the domestic market, local deposits, consumer banking and the middle market. They are not currently banking much on financial support of their head offices. They are also entering into alliances with local banks and firms to expand business. Some foreign banks have improved their performance by cutting what they described cost of credit. Non-performing loans are down. So are the provisions for bad debt. The recovery is faster. They are not harassed by the accountability process, which is haunting decision-makers in the public sector banks. Recovery of loans is managed on give and take basis. No nationalized bank's official is willing to take risks and debts are mounting. The improved performance of leading foreign banks is perhaps more evident in case of the turnaround in Citibank. Heavily dependent on foreign currency, it suffered losses when the FCAs were frozen. But the bank doubled its operating profits from just over Rs500 million in 1999 to Rs1.037 billion in year 2000. Citibank's country head Zubyr Soomro says 97 per cent of the two years' earnings were paid as taxes. Expenses were reduced by Rs70 million, cost of credit (provisions for bad debts) were cut by Rs150 million and fee income went up by Rs140 million. Loans were at the same level for the two years, but returns improved. The Citi demonstrated great skill in switching over from its heavy dependence on foreign currency accounts to local currency deposits. From 13 per cent of the total deposits in 1997, the local currency deposits soared to 68 per cent in 2000. Not all-foreign banks have done so well in 2000 as Citibank. Others have fared badly. To develop synergy between consumer and corporate banking, Zubyr Soomro, as country head of the Citibank, has now been made responsible for the development of both branches of business. So far, the corporate and consumer banking, worked separately under two autonomous divisions. As president of the Pakistan Banks Association, he organises monthly meeting of bankers (both foreign and local) to exchange views on macro-economic and banking issues. Zubyr says the UBL experience has made him much wiser. Citibank has entered into new business. The bank advises the KESC on cash management, processes one billion bills and helps the company in back office work. Through management information systems, it locates where the money is blocked and how can these funds be used more efficiently. Cost of idle money is reduced. Sui Northern also avails the bank's services. The bank undertakes review of its big corporate groups and offers advice on restructuring, identifies strategies and areas of investment potentials to suit specific need. It looks at possibilities of acquisition and mergers and facilitates deals. Zubyr says a major acquisition by Dewan group recently was the outcome of the bank's efforts. He told Dawn that the appetite for project financing has improved a little since there is a quicker court decision in loan default cases and because the economy is showing marginal improvement. He revealed that his bank was the market leader for credit cards. It has 56 per cent share of the market in credit card business and 22 per cent in the car leasing. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010416 ------------------------------------------------------------------- Drought will cause $2bn loss: Shaukat outlines remedial strategy ------------------------------------------------------------------- By Sabihuddin Ghausi KARACHI, April 15: The national economy is estimated to suffer a loss of $2 billion due to drought and water shortage, the federal minister for fiance, Shaukat Aziz, told a press conference here on Sunday. The Governor of State Bank of Pakistan, Dr Ishrat Hussain, and senior official Waqar Masood also spoke on the occasion along with the finance minister. They focussed mainly on the issue of remittances from overseas Pakistanis and spelt out a few proposed measures to attract investment and regulate the mechanism of foreign exchange flow. In reply to a question on the current situation, the minister explained that a loss of one billion dollar had been estimated on account of increase in the import bill for furnace oil for thermal power generation, as lowering of river water levels had reduced the hydel power generation capacity. Import bill may also be a little higher if wheat crop in final estimate is found less than the domestic requirement. Adding to this loss is the loss of one billion dollars, to be suffered on account of production losses of the crops, which would affect the country's export potential. The balance of payment would come under the impact of a double-edge sword - higher import bills and lesser exports. Shaukat Aziz said drought and water situation in the country was serious but added that the impact might not prove to be as disastrous as was being perceived now. He said the cotton crop was not that bad and wheat crop was being estimated around 18 million tons which if added with carryover stocks of the last season should be sufficient to meet the domestic requirement. A clear picture of the national economy, he said, would emerge at the end of the quarter, sometimes in June, when an IMF mission will visit for a review of the performance. By then, the size of all the Kharif and Rabi crops would have been assessed. However, growth in the national economy is now being assessed between 3.5 to 4 per cent from the original projection of 4.5 per cent. Earlier at the outset, Mr Aziz spelt out the reform measures proposed by a Task Force on the overseas Pakistanis on which the chief executive was briefed last Friday. Stating that total income of all the overseas Pakistanis was being estimated equal to total gross domestic production of the country $60 billion the need is to harness this source. He said two ordinances are being promulgated to restore confidence of the overseas Pakistanis. One of the two ordinances will guarantee the depositors from any freezing of the foreign currency deposits in the future. The second will suggest punitive action against any government agency that will probe the inflow of the foreign investment in Pakistan. This will prevent and preempt any harassment to the prospective investors by any government agency. As the country will move towards opening up of the capital account, he said, steps will be taken to gradually convert money exchangers into exchange companies. At the same time the framework within which these companies will work will be further strengthened. All transactions - inflow and outflow of foreign exchange - of the exchange companies will be documented and each of these companies will have to open an account with a bank. Export of all the foreign currencies will be allowed only through the National Bank of Pakistan The SBP Governor, Dr Ishrat Hussain, said the capacity of the central bank to monitor and regulate the operations of money exchangers was being strengthened. "The idea is to bring the official and kerb rate of currencies at the same level," the finance minister said. Mr Aziz said the task force, which included six bankers, had divided the overseas Pakistanis into three broad categories and measures to attract remittances and investment for each of these categories had been suggested. The first and the biggest category of expatriates was the workers who had been promised facilitation and free counselling on travel issues if each of them remit at least $2,500 a year. The State Bank in active consultation with the State Life Insurance Corporation and the banks is working out special insurance schemes for the overseas Pakistani workers. Professionals and white-collar workers abroad are the second category for which the Task Force has set a target of $10,000 remittance a year. The National Investment Trust and other state-controlled institutions and private banks have been advised to prepare special investment instruments and products for the overseas Pakistanis. Pakistani businessmen and traders in foreign countries have also been targeted for which the Board of Investment has been asked to prepare a strategy. The finance minister and the State Bank governor said that remittances in the current fiscal year were showing a 20 per cent growth which was very encouraging. Responding to a question, he said banks mobilising foreign deposits had been given the freedom to invest anywhere after putting 25 per cent as reserve. The State Bank has given guidelines to the banks for investment of foreign deposits which forbid them to invest in junk bonds or exotic currencies. Both the finance minister and the State Bank governor were confident of greater inflow of direct foreign investment in future as contracts have been signed between the Pakistani companies and foreign corporations in oil and gas sector and information technology. Mr Aziz said the government expected foreign investment in privatization and in agriculture when it was corporatized. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010415 ------------------------------------------------------------------- Demand for farm credit increases ------------------------------------------------------------------- By Sabihuddin Ghausi KARACHI, April 14: Beset with liquidity problems and difficulty in recovery of the stuck up loans, all the major banks are reporting a substantial increase in demand for the farm credits. This mounting demand for farm credit comes in the wake of a significant cut in areas being brought under cultivation in both kharif and rabi, this season. Sketchy reports appearing in the national press show that wheat acreage has already been cut by 30 per cent in Sindh and 16 per cent in Balochistan. Two Sindh ministers announced on Friday a cut of 20 per cent to 35 per cent in various kharif crops. By and large, the farmers in other provinces and particularly those living in the barani areas in Punjab and kutcha areas in Sindh have also been forced to keep a substantial chunk of their holdings uncultivated, because of water shortage. However, the rendering of large tracts of agricultural land uncultivated during rabi and kharif this year has not reduced the demand for bank credit. Instead, there seems to be a significant rise in demand for bank loans by the farmers. For bankers, the problem is that the State Bank of Pakistan, at the beginning of the current fiscal set a negative farm credit distribution target for entire 2000-01 at Rs729 million. All the banks, particularly the ADBP, were expected to focus entirely on recovering the outstanding loans rather than on disbursement. All these banks that include the ADBP, the five major commercial banks and the federal cooperative bank, were asked to recover Rs49.99 billion and disburse Rs49.26 billion in the current fiscal year. With a bad loan portfolio of more than Rs45 billion and groaning under a heavy administrative cost, the ADBP was asked to recover Rs35.70 billion in the current fiscal year. From this recovery, the ADBP was asked to disburse loans amounting to Rs31.25 billion among the farmers and pay back Rs1.2 billion to the State Bank from the expected surplus of Rs4.45 billion. The five major commercial banks were asked to disburse as total of Rs11.94 billion. But these banks are also expected to recover a total of Rs9.57 billion leaving a net disbursement figure of Rs2.37 billion. The FCB, which receives funds from the State Bank at 0.5 per cent, now operates only in Punjab and NWFP through their respective provincial cooperative banks. It was given a task to disburse Rs6.07 billion and recover Rs4.72 billion. The net disbursement therefore comes to Rs1.35 billion. Water shortage and persisting drought conditions have obviously affected recoveries of stuck up loans and hence the liquidity of all the banks including the ADBP, which are finding pretty hard to meet the rising demand of the farmers. Bankers attribute two factors for this sudden spurt in demand of farm credit. First is the government announcement of providing a development loan for tubewells at a concessional rate of seven per cent. Second factor is the State Bank decision to increase the production cost per acre of various crops by 50 per cent and above for purpose of sanctioning production loans to the farmers. The production cost of cotton is now being calculated at Rs6,000 an acre as against Rs4,000, wheat Rs4,000 as against Rs2,500, sugarcane Rs8,000 from Rs5,000 and paddy Rs4,500 from Rs2,500. But, in face of this mounting demand, all the major banks, have by and large maintained the last fiscal year's level of disbursement of the farm loans in the first eight months of the year 2000-01. A total amount of Rs25.63 billion credit was offered to the farmers in first eight months of the current fiscal, which by and large matches Rs25.59 billion credit disbursed among the farmers in same period of the last fiscal year. More than Rs20 billion was given for the production purposes and Rs5.56 billion was disbursed among the farmers for development during July to February, this fiscal. The ADBP remains the single largest lending agency with a disbursement of Rs17.20 billion that included Rs12.28 billion production and Rs4.92 billion development loan. All the five major commercial banks have offered in first eight months of this fiscal, total loans of Rs8.24 billion. Of these five, the Habib Bank and the Muslim Commercial Bank were reported to be maintaining over 70 per cent recovery ratio. The other three banks maintained a 60 per cent plus recovery ratio. But these banks are also not happy with the current recovery position.Back to the top
EDITORIALS & FEATURES 20010415 ------------------------------------------------------------------- Flotsam and Jetsam ------------------------------------------------------------------- Ardeshir Cowasjee DEMAGOGUES: Sardar Farooq Ahmad Khan Leghari, president from November 14, 1993, to December 2, 1997; Benazir Bhutto, prime minister from December 2, 1988 to August 6, 1990, and October 19, 1993, to November 5, 1996; Nawaz Sharif, prime minister from November 6, 1990, to July 18, 1993, and February 17, 1997, to October 12, 1999; Asif Zardari, united in wedlock with Benazir Bhutto since 1987. Judges: Chief Justice of Pakistan Sajjad Ali Shah, appointed June 5, 1994, forced to proceed on leave December 2, 1997, officially retired February 16, 1998. On the other side of the divide: the Quetta bench of the Supreme Court, November 1997; Justices Irshad Hassan Khan, Nasir Aslam Zahid, Khalilur Rehman Khan; the Peshawar bench of the Supreme Court, November 1997: Justices Saeeduzzaman Siddiqui and Fazal Illahi Khan. Excerpts from the transcript of a publicly recorded tape at Hameed Maker's 'Helpline' Seminar in Karachi on March 19, 2001: a question-answer session with Sardar Farooq Ahmad Khan Leghari who now, when asked whether he considers he might be a 'solution' to our problems, considers that he "could be one", ignoring the fact that certain of the present problems are of his making. "Our politicians come in through the democratic process, then dig their own graves and that of the democratic system...... "The response of the two political parties [PPP and PML] to the issues of governance are identical. Their main concern has been how to subjugate the judiciary and do away with due process of law and the rule of law. The confessions made by both leaders as to why they were doing so were identical. "In 1996, whilst waiting for the verdict in the Judges Case, Benazir was sitting with me anticipating the Supreme Court order. When it came she called her legal advisers, Yahya Bakhtiar being one, and asked for advice. She then told me that I must denotify the Chief Justice [Sajjad Ali Shah]. When I said 'no', she then said I must send his case to the Supreme Judicial Council. I said 'no' again... "She came to the presidency and was very distraught and on the verge of weeping. 'Farooq Bhai, you are throwing me to the wolves. You don9t know these judges of the Supreme Court. They will do to Asif and me what the Indian Supreme Court is doing to Narasimha Rao.' Then there was a lot of weeping and hysterical crying, even while a presidency servant brought tea. I was embarrassed and very sorry that things should have come to such a pass. "But she cooled down after a while. I reminded her that she was with me when the Indian High Commissioner told us they had a lot of material against Narasimha Rao. I asked her, 'Is there any material against you and Asif?' She got upset and said 'no, there is no material'. 'Then why worry?' I asked. 'Surely the Supreme Court cannot write judgments out of the air'... "Both Benazir and Nawaz Sharif had the fear that an independent judiciary might hold a prime minister accountable and throw him or her out. "Exactly one year and three months later [October 16, 1997] there was almost a repeat performance on the same issue. The demand was identical. Denotify the Chief Justice of Pakistan [Sajjad Ali Shah]. Prime Minister Nawaz Sharif came to see me and brought with him Shahid Hamid, his governor of Punjab and my friend who had been won over and was advocating the case of the prime minister. 'Why don't you denotify the Chief Justice?' he said, 'the time has come to get rid of him'. 'Shahid,' I asked him, 'did you not tell the prime minister what my answer to Benazir was to the same question'? 'Well,' said Shahid, 'times have changed. The judiciary was united then, now it is divided, so we can do it.' 'Yes,' I said, 'we can violate the constitution and do what we like with the political system.' "This reflects the mind of the ruling elite, their supporters, henchmen, yes-men. "Their second demand was again the same: 'We have a file on the Chief Justice and can send his case to the Supreme Judicial Council'. "Both had the desire to bring the judiciary to heel and have it under the sole control of the prime minister. "When Nawaz Sharif let my Ehtesab laws lapse I asked him why. He said that his 'friends' did not like it. He did not specify which friends. Neither did he realize that he himself came under the mischief of those laws. "Benazir came to see me two days after Murtaza9s soyem, on September 26, 1996, to apologize for having made remarks about me on TV and having lied. She had imputed that I had a hand in the assassination. "Aftab Sherpao had rung me telling me she was upset and wished to come to see me and apologize..... I told Sherpao that every PPP leader and he himself knows who killed Murtaza. "The behaviour pattern of Benazir, Nawaz and Shahbaz and the rest is the same. All political parties have developed extreme fascist tendencies and the root cause for this is their scant regard for the supremacy of the rule of law. Prime ministers want judges of their own, irrespective of merit. They want judges who will do their bidding and not the bidding of the law. They do not want level playing fields lest anyone question the authority of the fascist leaders. "Karamat [General Jehangir Karamat, COAS] had to follow the Constitution when he acted as he did. But the Constitution is not very clear on what he should have done and what were the limits of his powers. I should have thought that when he was inducted as a go-between [for] the Chief Justice and the prime minister by the prime minister himself, Karamat could have put four men in SSG fatigues to guard the Supreme Court and maybe the attack [storming of the court on November 28, 1997] would not have occurred. "What must be understood is Nawaz's and his group's consistent and persistent effort to conquer all other centres of power. "I used Article 58(2)(b) once but when I got a second opportunity to use it I did not. The antics of both Benazir and Nawaz, and the way they have played around with the law and the Constitution, makes it necessary to have Article 58(2)(b) in order to maintain a balance of power. "When I decided in my mind to leave the whole bunch of politicians, both parties [PPP and PML] had become the same; they had the same political culture. "On the night of 27/28 November 1997 [the Supreme Court was stormed on the 28th] the prime minister [Nawaz Sharif] came to the presidency bringing with him the army chief [General Jehangir Karamat], the head of the ISI [Lt- General Nasim Rana], the speaker of the National Assembly [Ilahi Bakhsh Soomro] and the law minister [Khalid Anwer]. They pleaded with me until morning. All they wanted me to do in the light of the orders of the Quetta and Peshawar Supreme Court benches was to sign on the advice of the prime minister to appoint Ajmal Mian as Chief Justice of Pakistan. That's all. The advice was binding on me under the Constitution. When I refused and offered to resign to resolve the crisis that had been gripping the country for four months, I narrated to them point by point how the crisis came about, and in the presence of all of them proved that it was of the prime minister's making and not that of the Chief Justice. "But I told them, 'I have the solution. I will resign', Ilahi Bakhsh Soomro said 'Why should you resign for a half-mad Sindhi judge who is going to retire in three months anyway?' He used that exact term - half-mad. Then the prime minister chipped in and asked me why should I pay such a heavy price for a judge who is retiring in three months. "'I will resign,' I told them, 'because in my political parlance there is no buying or selling. Your culture and mine are different. I will resign and Mr Waseem Sajjad [chairman of the Senate] will have no moral compunctions [about] signing this document tomorrow. He will be acting president and he will do it.' It was two different political cultures at work." A couple of weeks ago, a Urdu daily carried a statement reportedly made by Asif Zardari from his Attock prison cell. According to Asif, after he had helped Leghari become president, Leghari asked him, 'Koi hukam karo' (To hear is to obey, master). He claimed that Leghari had told him that he, Asif, was possessed of great qualities. Asif said he had forgiven Nawaz Sharif because he was a political rival, but he could not forgive Leghari because he had betrayed a friendship. Flotsam and Jetsam have been jettisoned. The entire rotten lot should be disqualified and never again be allowed to reboard. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010420 ------------------------------------------------------------------- The come up pance of an upright man ------------------------------------------------------------------- By Ayaz Amir THINGS never get dull in Pakistan, do they? What do we have now? The fates catching up with a pillar, nay a titan, of the judiciary: His Lordship Justice Qayyum of the Lahore High Court, whose dispensation of justice was such that any bemused onlooker could be forgiven for thinking he was the Sharif family's personal judge, settling matters, both private and state, to their complete satisfaction. The Sharifs' notions of government were intensely private: which is to say, have your own man at every key post. They began with commissioners and police DIGs, the dregs of both services pandering to their whims and enriching themselves in the process. Major Mushtaq of the Police Service who has finally been caught by NAB for becoming a real estate tycoon while in service was an outstanding example of this breed: doing as he was told and becoming an impressive man of property along the way. But when Nawaz Sharif became Prime Minister the second time round the family's sights were set higher. They had whiz-kid younger brother running Punjab. They had their own man in the presidency. After Sajjad Ali Shah's arranged departure from the Supreme Court, they thought they had the apex court lined up in their favour. In the person of Justice Qayyum at the Lahore High Court they had the closest thing they could get to a personal judge. Division of family assets, balancing of huge bank loans against dummy collateral, tightening the noose around Asif Zardari and Benazir: the only judge who could handle these sensitive matters was Justice Qayyum. Only the army remained unsubdued. True, Nawaz Sharif had got General Jahangir Karamat to write out his resignation, an event which gave rise to the legend that after conquering other institutions he had humbled even the army. Still, this was not the same thing as having another Justice Qayyum as army chief. This is the significance of October 12: Nawaz Sharif in Hercules mode setting out to rectify this situation by removing Musharraf and putting a fellow Kashmiri from Lahore, Lt-Gen Ziauddin Butt, in his place. The scheme went awry because it was not thought through properly or because the army command had had enough and was in no mood to be pushed around. Remember also that the army command was smarting from Kargil, a defining moment in the longstanding love affair between GHQ and the Sharifs (the Sharifs having been discovered and groomed for great things by General Zia himself, Lt-Gen Jillani, Lt-Gen Hamid Gul and a whole line of minor geniuses in ISI). A wounded tiger and wounded generals: the mood between them is about the same. Nawaz Sharif did not have a measure of this feeling. He was also surrounded by a school of bumpkins, the kind who act as cheerleaders to prizefighters. "Play it on the front foot" was their constant refrain. Mian Sahib played it on the front foot once too often and did not know what hit him. What is that immortal line from Amir Khusrau? That the night of separation is as long as the tresses of my beloved. Of what duration are Nawaz Sharif's nights in the Holy Land? Arab hospitality is legendary but does it make up for time hanging heavy on your hands? Field Marshal Idi Amin, another distinguished exile in the Holy Land, has a better time of it. If envious rumour is to be believed, he can count on the company of nineteen wives and mistresses which is more fun than the occasional phone call to a second-ranking Muslim Leaguer deep in the Punjab boondocks or the occasional interview with a foreign radio service. Playing on the front foot: will not Nawaz Sharif be ruing the day he heard this accursed phrase? But back to the judicial titan, Justice Qayyum, who has had some sharp strictures addressed to him in the detailed judgment of the Supreme Court in the Swiss commission case against Benazir Bhutto and Asif Zardari. The Supreme Court has knocked down their convictions and ordered a retrial of the case on the grounds that the hearing judge, Justice Qayyum, was biased, was linked closely to the Sharifs and therefore was the wrong man to sit in judgment on Bhutto and Zardari. In the Qayyum tapes which detail conversations between Justice Qayyum and Nawaz Sharif's fox-hound, Saifur Rehman, nothing matches the echo of these words uttered by His Lordship: "By the grace of God this will be done (that is, the judgment against Bhutto and Zardari) and then both of us will go to him (Nawaz Sharif) and seek forgiveness." Forgiveness for what? For not being able to wrap up the case against Benazir and husband as quickly as Nawaz Sharif desired. What are the Tehelka tapes when set against these resonant words? Fictitious arms deals and petty cash changing hands do not have half the colour of justice being prostituted in so brazen a manner. I wish though that this display of independence by the Supreme Court had been more timely. In an earlier epoch the Supreme Court declared General Yahya Khan a usurper when his usurpation had already passed into the trashcan of history. Instances abound of the superior courts being guided by the pragmatism of circumstances. Here again we see an indictment of bias when the origin of the bias has dwindled to a single stately home in the Holy Land. No doubt because of the Supreme Court roster Benazir and Asif's appeal could not come up for hearing earlier. But what if the Mandate had survived? What if the climate was different? Is this idle speculation? Not if one looks at the vagaries of Pakistan's judicial history. Benazir and the PPP are naturally elated although if they should be making any offerings it is to Justice Qayyum and Saifur Rehman who between them ensured that an open-and-shut case should thus be torn into shreds. Does any newspaper-reading man in Pakistan doubt Benazir's and Asif's guilt? Does anyone think they got no commission from the Swiss firm, SGS-Cotecna? Does anyone doubt the financial acumen of the then ruling couple who turned Islamabad into an open auction mart where every deal, no matter how outrageous, was on offer provided the right palms were greased? But Saifur Rehman and his goons in the Accountability Bureau aimed not at justice but victimization. And because their hands were not clean retribution has knocked at their doors. The losers as always are the people of Pakistan. Of what matter to them if one set of looters is embarrassed while another set is distributing sweets over a form of judicial vindication? It is the army which has to make up its mind. Can it do without political allies? Can it negotiate the turbulent waters of Pakistani politics all by itself? The history of coup making suggests it cannot. Sooner or later it will have to identify its principal enemy and make peace with the other combatants in the arena. In war the axis of advance should, ideally, be one. Multiple fronts, as every Hitler has discovered, are a recipe for disaster. Is there anything to choose between the jokers of the Muslim League and the PPP? Conventional wisdom says there is not although a closer examination may yield a different answer. The common factor between both parties is gangsterism and corruption. Shahbaz Sharif resembled nothing so much as a Mafioso don. What does Asif Zardari look like? In any Godfather sequel he can easily get a part. As for moneymaking it is hard to figure out who beat whom: the PPP leadership or the Muslim League? My own guess is the Sharifs were professionals: subtle about their money. Zardari left a trail, which goes all the way to Rock wood, French submarines, Amer Lodhi, and my favourite grand admiral, Mansur-ul- Haq. As for evidence, was their evidence against Al Capone? Is there evidence against a single patwari or thanedar across the country? Thieves do not leave receipts or footprints except when they get careless. Zardari was careless or he would not have been caught out over Rock wood. But if in all other respects the two representatives of the people are equal, in one important characteristic they differ. The Sharifs became a threat to the army, attempting to play politics with it. Except for the brief Sirohey episode during Benazir's first stint as prime minister, the PPP never tried to mess around with the army. In fact after each of her two dismissals Benazir took care to blame elements within the intelligence agencies and not the army as a whole for her troubles. Even now she is desperately waving an olive branch in General Musharraf's direction. The army's political analysis therefore has all been wrong. Since Zia's time the prejudice which has never quite left the minds of senior generals is that somehow the PPP is a security risk. The facts speak otherwise. General Beg and that sorry figure, Ghulam Ishaq Khan, trying to scatter obstacles across the PPP's path in 1988 by building up Sharif. Then one after the other receiving a kick from him. Leghari and General Karamat ousting Benazir in 1996 and thus ensuring the birth of the Heavy Mandate and the writing of their own obituaries. Why is Pakistan's political landscape littered with such fools? But Musharraf says he will have nothing to do with either set of villains. His word would carry greater weight if his government had given a better account of itself since coming to power. Politicians cannot be banished through military orders. Ayub banished the pre- 1958 leaders only to give birth to the demons of separatism. Zia hounded the PPP only to have his nemesis, Benazir Bhutto, replace him when his end came. The political field can be redrawn only through better performance. Ataturk swept aside the remnants of the Ottoman empire and created the Turkish Republic. De Gaulle opened a new era in French politics by laying the foundations of the Fifth Republic. But both were exceptional figures. If ambition must be tailored to capacity and performance, Musharraf and his generals will have to settle for lesser aims.
SPORTS 20010420 ------------------------------------------------------------------- Pakistan wary of Sri Lankan backlash in final ------------------------------------------------------------------- SHARJAH (UAE), April 19: Pakistani captain Waqar Younis is wary of a Sri Lankan resurgence when the two Asian giants clash in the final of the Sharjah Cup tri-series here on Friday. With four league wins in a row, Pakistan are the overwhelming favourites against their struggling rivals who lost three games, including an embarrassing defeat by outsiders New Zealand on Tuesday. Waqar, however, cautioned his team against taking victory for granted in the day-night final before an expected full house at the Sharjah cricket stadium. "What happened in the league does not count, one-day cricket is all about playing well in those seven hours," Waqar said. "We are very confident about the final, but Sri Lanka are a good side and will fancy their chances. We have to be on our toes all the time." The tournament has thrown up so many surprises over the last two weeks that predicting the winner of the 50,000-dollar title on Friday will be foolhardy. Full-strength Sri Lankans began as the favourites following their 3-0 whitewash of England in the one-day series at home. Pakistan, on the other hand, were in turmoil after a dismal tour of New Zealand in which they drew the Test series 1-1 and lost the one-dayers 3-2. Pakistan came to Sharjah without a coach, a new captain and missing the services of top stars like Wasim Akram, Moin Khan, Azhar Mahmood and Shoaib Akhtar. But riding on the experience of Saeed Anwar, Inzamam-ul-Haq and Waqar, the Pakistanis used their favourite hunting ground to regroup and return to winning in style. New Zealander Matthew Sinclair may have been the top scorer of the league with 304 runs, but Anwar and Inzamam have been more effective in shaping Pakistan's four convincing wins. Sri Lanka will be wary of Anwar, who smashed 90 and 88 against them in the league. The seasoned left-hander also scored 81 against New Zealand. The fluent Inzamam showed why he is regarded as one of the most dangerous batsmen in world cricket by making 44 and 87 against the Sri Lankans and 71 and 85 against the Kiwis. "We have to get Anwar and Inzamam early and not give them space to score," admitted Sri Lankan captain Sanath Jayasuriya. "It's been a disappointing tournament so far for us, but it is up to the players to put aside the defeats and start afresh. "We lost to Pakistan by 16 runs and 28 runs, which means the difference was not much. The important thing is to grab the chances that come our way." Sri Lanka will be hoping that frontline batsman Marvan Atapattu gets back among the runs after a top score of 36 in the league. Jayasuriya himself has not clicked at the top of the order except for a rollicking 107 against New Zealand in which he smashed a record-equalling 30 runs off an Chris Harris over. Teams (from): Pakistan: Waqar Younis (captain), Saeed Anwar, Shahid Afridi, Imran Nazir, Inzamam-ul-Haq, Younis Khan, Faisal Iqbal, Abdur Razzaq, Humayun Farhat, Saqlain Mushtaq, Shoaib Malik, Mohammad Sami, Yasir Arafat, Kashif Raza. Sri Lanka: Sanath Jayasuriya (captain), Marvan Atapattu, Romesh Kaluwitharana, Mahela Jayawardena, Kumar Sangakkara, Russel Arnold, Kumar Dharmasena, Tillekeratne Dilshan, Chaminda Vaas, Muttiah Muralitharan, Indika de Saram, Thilan Samaraweera, Akalanka Ganegama, Nuwan Zoysa, Dilhara Fernando.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010419 ------------------------------------------------------------------- Moin and Rashid rival for wicket keeper's slot ------------------------------------------------------------------- By Our Sports Reporter KARACHI, April 18: Former captains Moin Khan and Rashid Latif are vying for one wicket keeper's slot for next month's tour to England after the selectors finalized a 20-man provisional squad. Highly placed sources confirmed that both the wicket keepers have been included in the list. But added that the final decision would be taken by the Pakistan Cricket Board (PCB) advisory council in consultation with skipper Waqar Younis. The squad will be named on Monday. Moin, 30, who lost his captaincy to Waqar Younis earlier this month, on Wednesday confirmed his fitness and availability for the England tour whereas Rashid, 32, who has been out of favours since 1998, is already taking active part in the domestic competitions. Interestingly, it were the previous tours to England in 1992 and 1996 that changed the fortunes of the two wicket keepers. In 1992, Rashid claimed the No 1 spot after Moin was dropped for the fifth Test while in 1996, Moin reclaimed the top slot after back trouble sidelined Rashid from the Leeds Test where he became the first wicket keeper in the last century to reach three figures. "Since Pakistan will play two Tests in the first half of the tour, only one wicket keeper would go in a 16-man squad. Now its entirely up to the concerned authorities which wicket keeper they would choose," sources said. Besides Moin, Wasim Akram, Azhar Mahmood and Yousuf Youhana have also confirmed their fitness. The foursome along with paceman Shoaib Akhtar and legspinner Mushtaq Ahmad have been named in the provisional squad. Shoaib is due to return from Australia on Friday and is expected to inform about his fitness on Sunday. However, there was no place for Ijaz Ahmad who had a splendid 1996 tour to England but failed to deliver the goods in New Zealand after being sent as replacement at a time when he was out of form and unfit. Considering the unfavourable weather and pitch conditions which are likely to welcome Pakistan in the first half of English summer, Ijaz could have played a pivotal role in Pakistan's bid to keep their three-tour unbeaten record intact. In addition to this, Pakistan only has four middle-order batsmen out of which only two have the required experience of Test cricket. The 20-man provisional squad is: Saeed Anwar, Imran Farhat, Imran Nazir, Shahid Afridi (openers), Inzamam-ul-Haq (vice-captain), Faisal Iqbal, Younis Khan, Yousuf Youhana (middle-order batsmen), Moin Khan, Rashid Latif, Humayun Farhat (wicketkeepers), Abdur Razzaq, Azhar Mahmood (allrounders), Waqar Younis (captain), Wasim Akram, Mohammad Sami, Shoaib Akhtar (pacers), Saqlain Mushtaq, Mushtaq Ahmad, Shoaib Malik (spinners). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010416 ------------------------------------------------------------------- Pakistan put New Zealand where they belong ------------------------------------------------------------------- SHARJAH, April 15: Saqlain Mushtaq and Abdur Razzaq shared seven wickets as Pakistan blew away New Zealand with a seven-wicket victory in the Sharjah Cup triangular series on Sunday. Off-spinner Saqlain ran through the lower order to finish with four for 17 after seamer Razzaq removed the top three New Zealand batsmen to return three for 22. Their combined efforts helped Pakistan bowl out New Zealand for just 127 in 31.1 of their 50 overs, the last six wickets tumbling for 21. Only opener Chris Nevin offered some resistance to the charged-up Pakistan attack, scoring 50 off 40 balls with five fours. Pakistan, who have completed their round-robin matches with four wins in as many matches, knocked off the required runs in 25.2 overs as Inzamam-ul-Haq lashed 85 off 67 balls, with two sixes and 12 fours. The Pakistanis made a shaky start, losing Saeed Anwar and Iman Nazir with only 17 scored, but Inzamam put paid to New Zealand hopes of an upset victory. Inzamam was in attacking mood, smashing off-spinner Brooke Walker for 18 in one over, as he surpassed Anwar as the leading run-getter in Sharjah. When Inzamam, playing his 47th match in Sharjah, had scored 42 he beat Anwar's tally of 2,054 runs in this off-shore Gulf venue. New Zealand, without a win in three matches, are as good as out of the tournament, though they still have one match against Sri Lanka on Tuesday. However, even if they win that, their net run rate is so inferior to Sri Lanka's that they have little realistic chance of reaching the final. The New Zealanders had started the game in a positive frame of mind, racing to 79 for two by the 12th over when Nevin hooked Razzaq straight Mohammed Sami, who took an excellent catch at fine leg. New Zealand faltered after his dismissal, with Sami taking two quick wickets in the middle order and Saqlain, later named man of the match, polishing off the tail.-Reuters ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
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