------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 24 February 2001 Issue : 07/08 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + Cabinet approves rise in gas prices + Govt to check income of Jihadi outfits + US team holds talks with Musharraf + Policies to be guarded under new NSC: CE + India trying to mislead world, says Pakistan + Pakistan stresses nuke deterrence + Restoration of assemblies in March likely + Punjab PML divided + Russia offers help to Pakistan Steel + Punjab-Sindh stand-off on water continues + Foreign Office slams Nuclear fuel supply to India + PC told to privatize PTCL by June + Tapes be added to Supreme Court record: Benazir + Expatriates send $667.5m in seven months --------------------------------- BUSINESS & ECONOMY + Task force reports submitted to govt + Hundreds of CBR officials reinstated + Defence budget being reduced: Shaukat + CBR to scan 53,300 import accounts + Banks borrow Rs2.9bn from State Bank + State Bank fails to suck in excess liquidity + CBR mulling new tax refund plan + Talks with IMF mission satisfactory: Shaukat + Deals worth $35.5m struck with Iraq + NWFP investment plan fails to take off + EC seeks assurances to give aid for Social Action Programme + Rupee falls to 63.10 per $ in kerb + Higher oil prices sought --------------------------------------- EDITORIALS & FEATURES + 'The first observation' Ardeshir Cowasjee + The death of politics Ayaz Amir + Israel as a colonial venture Irfan Husain + Judicial-executive interactions Khalid Anwer ----------- SPORTS + Pakistan overcome rusty fielding to beat New Zealand + Pakistan plan Aussie style set-up
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010222 ------------------------------------------------------------------- Cabinet approves rise in gas prices ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, Feb 21: The cabinet on Wednesday approved an "unspecified" increase in the price of natural gas for all kind of consumers - industrial, commercial, domestic and CNG (vehicle fuel). The federal cabinet decided that domestic tariff of natural gas for those consuming up to 100 cubic metres would remain unchanged. The consumers using more than 100 cubic metres will have to pay higher rates. Briefing newsmen after the meeting, Abdullah Yousaf, secretary, Ministry of Petroleum and Natural Resources said that the cabinet mandated the ministry to increase the price, but the exact increase would be known after a few days. The ministry has to make fresh calculations in light of the directions of the chief executive. The official said that the government was giving a total subsidy of Rs6.0 billion to domestic consumers. He claimed that the coming increase would not affect 40 per cent of the domestic consumers, who are consuming only up to 100 cubic metres. The remaining 60 per cent domestic consumers would have to pay more. The official said that a Rs12 billion subsidy to the fertilizer industry would continue as it was the government's policy to control the input cost of agricultural products. He said that the upward revision of the gas price would be in accordance with the increase in the price of crude oil as the government had to pay more to the gas producers. Under an agreement with foreign gas producers, he said, the government had to review the gas rates after every six months. He said that all over the world the domestic tariff of natural gas was higher than the industrial tariff except in Pakistan where it is the other way round. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010220 ------------------------------------------------------------------- Govt to check income of Jihadi outfits ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 19: The government on Monday vowed to stand firm to check religious violence and sectarian terrorism in the country and announced to probe the credentials and funding of the religious organizations involved in Jihad. An interior ministry spokesman, in a statement here, said that in the larger national interest it was very important to keep such activities under control. "Government's sincere efforts in this respect should not be seen as anti-Jihad or anti-Islam, rather it is equal to dancing to the tunes of our enemies." The government, he said, would welcome organizations collecting funds for the welfare and relief of Kashmiri refugees but they would have to do it in an organised manner. "The government would like to verify the credentials of such organizations and keep account of their income and expenditure, so that no vested interest could exploit the name of Jihad and refugees to fulfil its own nefarious designs." The spokesman maintained that donation boxes had been placed in shopping centres, everywhere in the country, but no one knew the details of the funds collected. "This situation is totally unacceptable," he categorically said. Such activities, he said, had helped our enemies to portray Pakistan as a terrorist state, which was very dangerous for national development, economy, stability and its image as a tolerant nation. Referring to the Jihad in Kashmir, the spokesman reiterated that the government stood firm behind the freedom struggle in Kashmir with all political, moral and ideological support. "There is no question of backing out of the support which the government and the people of Pakistan are extending towards the indigenous freedom struggle in Kashmir." However, he lamented that there had been mushroom growth of dubious outfits, including some sectarian militant groups in the country, who were busy cashing on the sacrifices of Mujahideen in Kashmir without their funds being audited. Referring to the latest remarks attributed to the interior minister regarding checking the militancy in the country, the spokesman clarified that the remarks made in all sincerity and good faith had been deliberately twisted by few "unscrupulous elements" to grind their own axes. The spokesman also mentioned display of arms by some elements and said that the natural outcome of increased militancy and violence was the open and blatant display of weapons and "gun culture" in the society. "This dangerous trend had to be stopped and the government banned the display of weapons in the larger interest of state and its citizens." He said that all the provincial and federal governments had been asked to make sure that all illegal, un-Islamic and immoral activities of display of arms were stopped. He claimed that the government had a firm resolve to do its duty to bring peace in the society and create an atmosphere of tolerance according to the golden principles of Quran and Sunnat and human values as demonstrated by the Holy Prophet (PBUH). The spokesman sought citizens support and cooperation to make the country a peaceful place to live but warned all those who wished to impose their will on the majority and broke the law to check militancy in the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- US team holds talks with Musharraf ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 22: A three-member US Congressional delegation met the chief executive, Gen Pervez Musharraf, on Thursday and discussed with him various aspects of bilateral relations. The CE briefed the delegation on the government's reform agenda and the steps being taken to restore democracy, including the holding of the local bodies elections, according to a Foreign Office press release. The delegation was led by David Bonior and comprised Joseph Pitts and Jim McDermott. It also discussed the Kashmir situation and other issues of regional peace and security. The issue of Afghanistan with particular reference to developments in the wake of the United Nations sanctions on that country, also came under discussion. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- Policies to be guarded under new NSC: CE ------------------------------------------------------------------- Ihtashamul Haq ISLAMABAD, Feb 22: Chief Executive Gen Pervez Musharraf said here on Thursday that a National Security Council (NSC) would be established to ensure continuity of government policies. "The chief executive assured businessmen on Thursday that an NSC- type body will be set up with a view to ensuring continuity of government policies," said Finance Minister Shaukat Aziz. He told reporters that the CE had met more than 50 experts, economists and top businessmen on Thursday and discussed with them a number of issues, such as the establishment of the NSC, cut in the defence budget, improvement of relations with India and an offer of maximum investment incentives to overseas Pakistanis in the next budget. The finance minister said Gen Musharraf had told the participants of the meeting that his government had decided not to increase the defence budget in real terms, adding that the purpose was to give positive signals to India indicating that Islamabad wanted peace in the region. "The chief executive told the meeting that the defence expenditure will be kept flat in real terms. This (defence) budget has to be kept in line with inflation rate," said the finance minister. When asked whether the CE had talked about revival of assemblies, the finance minister chose not to comment. He said: "The CE told the participants that his government wanted to protect his various actions and policies by having an institution like the NSC soon." Mr Aziz quoted the CE as having told the participants that he was all for normalizing relations with India. The CE had observed that Pakistan was trying to establish good political and economic relations with India, the finance minister said. "I am ready to meet the Indian leadership any time, anywhere to forge better ties with India," Mr Aziz quoted the chief executive as having said. The CE had agreed with the participants that peace overtures should continue to be made so that relations between India and Pakistan could improve, the finance minister said. "The general (the CE) stressed the need for holding talks with India," Mr Aziz added. "Overseas Pakistanis will be given more concessions in terms of paying any taxes," the finance minister said, adding that new industries to be set up by the overseas Pakistanis would be tax- free and would have additional facilities. The finance minister said the government would encourage non- repatriable investment by the overseas Pakistanis for which a new policy would be announced in the next budget. He said the CE had also agreed with the participants of the meeting that the confidence of local and foreign businessmen needed to be restored. "The freezing of foreign currency accounts in 1998 did not go well with the investors," he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- India trying to mislead world, says Pakistan ------------------------------------------------------------------- ISLAMABAD, Feb 22: Pakistan on Thursday demanded India respond to its long-standing invitation to allow Kashmiri leaders to visit Islamabad for talks to kickstart a formal peace dialogue. A foreign office spokesman in a statement described Indian Prime Minister Atal Behari Vajpayee's decision to extend the truce for three months as "yet another attempt...to mislead world opinion". The statement said India was repeating old allegations against Islamabad and trying to malign the Kashmiri "freedom struggle" instead of responding positively to Pakistani initiatives to reduce tension and start a peace process. "The government of Pakistan calls upon the government of India to realise the futility of its efforts to impose a military solution on Kashmir and join Pakistan in a sincere effort to resolve the dispute," it said. India should halt "its repression, violence and terror against the Kashmiri people, respect the right of the Kashmiri people to self- determination, (and) respond positively to the Pakistani initiatives for peace", the statement said. It asked New Delhi to let a delegation of the All Parties Hurriyat Conference go to Islamabad for talks with Pakistan "for a peaceful settlement of the Kashmir dispute in accordance with relevant UN Security Council resolutions". Pakistan has responded to the ceasefire by offering "maximum restraint" along the Line of Control, and withdrawal some of its troops from the area. In November it also invited the Hurriyat Conference executive council for talks in Islamabad. New Delhi has not opposed the idea but so far it has not issued the necessary travel documents to the Hurriyat leaders. A team of US congressmen currently in Pakistan, having visited India earlier in the week, has also urged India to allow the Hurriyat leaders to travel to Islamabad. INAMUL HAQ: Foreign Secretary Inamul Haq said Pakistan and India could develop bilateral ties and promote economic cooperation in the region once the Kashmir dispute was resolved and a strategic restraint regime was established in South Asia.-Reuters/APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Pakistan stresses nuke deterrence ------------------------------------------------------------------- Reporter KARACHI, Feb 23: Pakistan on Friday emphasized that the cause of peace, security and progress in the conflict-ridden South Asian region could be best served if mutual deterrence was preserved at the lowest possible level and the core issue of Kashmir was addressed. This was spelt by the Foreign Office Director General, responsible for disarmament issues at the inaugural session of the three-day workshop on confidence building measures in South Asia. The workshop has been organized by the international relations department of the University of Karachi. Pakistan remains ready to discuss in fairly specific terms its requirements for a minimum credible nuclear deterrence, if India was prepared to do so, the Foreign Office official said in his written presentation. Pakistan was also prepared for reciprocal agreements with India for nuclear and missile restraints. These could include: one, not to deploy ballistic missiles; two, not to operationally weaponize nuclear capable missile systems; three, formalize the understanding to provide prior and adequate notification of flight-tests of missiles; and four, to declare a moratorium on the development, acquisition or deployment of anti-ballistic missile systems, since these can destabilize "minimum credible deterrence." Nuclear restraint agreements between India and Pakistan could be accompanied by political and technical confidence building measures, he said. South Asia could become a region of peace and progress through a commitment on the part of both India and Pakistan to resolve the core Issue of Jammu and Kashmir through peaceful negotiations in accordance with the aspirations of the Kashmiri people. Pakistan on its part had made persistent efforts to defuse tension over Kashmir and to launch the process for a just and peaceful resolution to the dispute, he said. He also referred to the exercise maximum restraint along the Line of Control in Jammu and Kashmir, and withdrawal of sizable forces from forward positions on the Line of Control. The foreign office official said that the Indian announcement to suspend military operations against the Kashmiri freedom fighters would be meaningful only if it was combined with other essential elements i.e. commencement of a purposeful dialogue for the settlement of the Kashmir dispute, an end to repression and violence against the Kashmiri people, reduction of Indian forces in the occupied Kashmir, release of all detainees and respect for the fundamental rights of the Kashmiri people. The Foreign Office official said that the Indian announcement to suspend military operations against the Kashmiri freedom fighters would be meaningful only if it was combined with other essential elements i.e. commencement of a purposeful dialogue for the settlement of the Kashmir dispute, an end to repression and violence against the Kashmiri people, reduction of Indian forces in occupied Kashmir, release of all detainees and respect for the fundamental rights of the Kashmiri people. He also reiterated Pakistan's proposal that the executive committee of All Parties Hurriyat Conference, the representative of the Kashmiri people should be allowed to travel to Pakistan preparatory to a tripartite dialogue. Conciliation cannot be brought about nor confidence created unilaterally, he said. The road map to this end lies through the peaceful methods of settlement of disputes such as bilateral negotiations as well as resorting to the good offices and mediation as provided in the charter of the United Nations, he added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010222 ------------------------------------------------------------------- Restoration of assemblies in March likely ------------------------------------------------------------------- ISLAMABAD, Feb 21: There is a strong indication of restoration of parliament in the last week of March, reliable sources told NNI here on Wednesday. The chief executive, Gen Pervez Musharraf, would assume as president whereas anyone from Mian Azhar or Ejazul Haq would be nominated as prime minister following the restoration of assemblies, sources disclosed. Though eight political parties, including Pakistan Muslim League, have supported the government option to restore the assemblies, some PML "hardliners" are opposing the move. The Pakistan People's Party supports fresh elections, however, some leaders of the party are also against the restoration of assemblies and are calling for fresh elections. According to these sources, Muttahida Qaumi Movement (MQM), Awami National Party (ANP), Balochistan National Party (BNP), Jamhoori Watan Party (JWP), Jamiat Ulema-I-Islam (JUI) and National Peoples Party (NPP) including independent members of FATA and minorities, have decided to support the move besides eight other parties. The option to restore the assemblies was considered at the meetings between the PML central leaders, Mian Azhar and Chaudhry Shujaat Hussain, and Gen Musharraf. However, they were assigned some tasks to accomplish. One of the tasks has been accomplished following the election of Chaudhry Pervez Ellahi as PML Punjab President, the sources disclosed. In the second stage, preparations to hold party elections in Sindh have been finalized. Maqbool Shaikh and Ghaus Bakhsh Mehr are two main contenders for the Pakistan Muslim League's provincial presidentship. Work is in hand in wooing 35 PML suspended members of the National Assembly, who are considered to be "hardliners". They have also assured their cooperation in the wake of restoration of assemblies and would subsequently quit the Nawaz Sharif camp. Until then, they want to remain spectators, the sources further confided. The Awami National Party and the Balochistan National Party leaders have also shown interest and support for restoration of assemblies. They have recently held detailed talks with PML senior vice president Ejazul Haq on the option. In the NWFP, Saleem Saifullah Khan is expected to be the candidate for the provincial presidentship. He has also assured cooperation if the government restores the assemblies. The sources said that the eighth constitutional amendment would be restored in the wake of the restoration of the assemblies.-NNI DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010220 ------------------------------------------------------------------- Punjab PML divided ------------------------------------------------------------------- Ashraf Mumtaz LAHORE, Feb 19: Chaudhry Pervaiz Elahi was elected unopposed president of the Punjab PML by 793, out of 911, members of the provincial general council on Monday, splitting the party into two factions. Rival faction, led by Sardar Zulfikar Khosa, immediately rejected the whole exercise as illegal, saying most of the participants had come either under pressure and threats from intelligence agencies or they were workers in factories of Chaudhry Pervaiz Elahi, speaker of the suspended provincial assembly, and Humayun Akhtar Khan. Wasim Sajjad, chairman of the suspended senate, and Illahi Bakhsh Soomro, speaker of the suspended National Assembly, attended the meeting at the Muslim League House as observers. They refused to offer comments on the genuineness of the exercise. They told reporters that they would present their points of view before the conciliation committee, which was constituted to discuss the possibility of restoring the membership of four party leaders, expelled for breach of discipline. They both did not reply when a reporter asked whether Chaudhry Pervaiz Elahi, whose basic membership was under suspension with 26 others, was eligible to contest election for the presidentship. Independent group leaders Qaiser Sheikh, Nasrullah Dreshak, Asghar Khan and Jamaat-i-Islami's Liaquat Baloch also witnessed the proceedings as observers. Through a resolution, the new president was empowered to appoint other office-bearers or bring about changes in the organizational structure. The meeting was requisitioned by 768 members to elect president as the post had been lying vacant for long. Chaudhry Shujaat told reporters that of the participants 161 were suspended MPAs and 51 MNAs. He said many others could not participate because they were out of the country. Senior leader Mian Meraj Din, who recently became acting provincial president, presided over the meeting. Separate registration stalls had been set up outside the Muslim League House for every division where members were issued identity cards. Almost all participants entered the premises with ID cards and those who did not have them, were provided with the same immediately. There were many who had been ministers in the cabinets of either Nawaz Sharif or Shahbaz Sharif. They have been diehard supporters of the Sharifs and nobody could expect that they would change their loyalties so conveniently. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Russia offers help to Pakistan Steel ------------------------------------------------------------------- Habib Khan Ghori KARACHI, Feb 23: Russian Ambassador Eduard S. Shevchenko has offered support for the modernization of some plants of the Pakistan Steel, enabling it to increase its production to three million tons. Speaking at the Centre for Development of Democracy on Friday, he said that if Russia stopped selling weapons to India, it could buy them from France, Britain, US and other countries, adding that Russia was ready to sell weapons to Pakistan as well. Mr Shevchenko said that despite Russia's offer Pakistan had not approached his government for the purchase of weapons. He said that the Taliban-sponsored militancy in Afghanistan and Pakistan's expression of support to rebels in Chechnya had shadowed "our bilateral relations". He added that on this issue his president had spoken to the chief executive. The ambassador ruled out Russian mediation for the resolution of disputes between India and Pakistan. "We support the settlement of the disputes but they can be resolved only when you come in touch with India," he said. "We are eager to have friendly relations with Pakistan - just as we have friendly relations with China and India." About the government of the Taliban in Afghanistan, he said: "Even China has criticized the Taliban's policy of supporting international terrorism by setting up training camps from where armed groups are being sent to neighbouring countries." The Russian ambassador said: "Drug supply from Afghanistan is a problem not only for Russia but also for Pakistan where the number of drug addicts is estimated to be four million." He said Pakistan and Russia shared views on a number of issues, such as the multipolar world and bilateral relations in the economic sector. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- Punjab-Sindh stand-off on water continues ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Feb 22: The inter-provincial dispute on water sharing during shortages remained unresolved as the Indus River System Authority (Irsa) on Thursday failed to find a solution acceptable to Punjab and Sindh. Provincial members at the authority agreed to meet on March 17 for holding further deliberations on the issue before taking a final decision, Secretary Irsa, Sohail Alam, told a news conference after the meeting. Meanwhile, the provincial representatives, particularly of Punjab and Sindh, would consult their respective governments whether they could show any flexibility "in the larger interest of the country," Mr Alam said. Irsa in its meeting also appraised various options including the one of referring the issue back to the CE with the observation of all the four provinces and a request to consult the apex court. The option of invoking clause 8(2) of the Irsa Act for holding a ballot on the issue is still open and can be exercised if pressed by Sindh, he said. "Sindh has not pressed for the balloting otherwise the authority would have to invoke clause 8(2)," Mr Alam added. The authority today traced the history of the problem and concluded that there were a lot of "grey areas", which needed further explanations from the provincial governments. "Provincial members will seek guidance from their respective governments on these grey areas," he said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010221 ------------------------------------------------------------------- Foreign Office slams Nuclear fuel supply to India ------------------------------------------------------------------- Hasan Akhtar ISLAMABAD, Feb 20: Expressing concern over the reported shipment of nuclear fuel to India by Russia, Pakistan on Tuesday criticized the discriminatory treatment of the Nuclear Material Suppliers Club against Islamabad , even for the supply of maintenance material for power reactors operating under safeguards of the International Atomic Energy Agency. Foreign Office spokesman Riaz M. Khan was commenting on the nuclear fuel supply for India's Tarapore nuclear reactor which is not safeguarded by the IAEA. He said that the Russian shipment would help the growth of the Indian nuclear weapon capability in contrast to the very tight restrictions for supply of any nuclear equipment to Pakistan, though needed specifically for peaceful purposes or related to the safety of its nuclear installations which were under the IAEA safeguards. The spokesman asserted that the shipment, which followed the Russian agreements for large-scale supply of military equipment, including Sukhoi SU-30 and T-90 tanks, to India, would widen the conventional arms imbalance in the region and would not be helpful for peace and stability. The spokesman said the "myth of ceasefire" in occupied Kashmir, which had carried little credibility, had been demolished by the admission of the Indian military commander that the Indian military had fired on peaceful protesters in Haigam and Maisuma recently, resulting in scores of casualties. The spokesman denied as "completely unfounded and baseless" that Islamabad was obstructing United Nations officials from crossing the border between Pakistan and Afghanistan. Pakistan itself, he said, had desired the UN to arrange relief and assistance for the Afghan people inside that country and added that the UN sanctions too permitted flow of humanitarian assistance to Afghanistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010221 ------------------------------------------------------------------- PC told to privatize PTCL by June ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Feb 20: The cabinet committee on privatization on Tuesday approved the reference price of the Liquefied Petroleum Gas business of the Sui Northern Gas Pipelines. Sources said the CCOP approved the same reference price which had been okayed by the SNGPL's board of directors. Earlier, the board had rejected the highest bid offered by M/s Petroson of Singapore. The meeting decided that the new bidder would not be offered any particular quota of the product. The bidder would be told to sell the product on the market-based prices by further developing its own infrastructure. Presided over by Finance Minister Shaukat Aziz, the committee also approved exclusion of sale of Pakistan State Oil shares in the Pakistan Refinery from the short-term privatization programme. Mr Aziz directed the Privatization Commission (PC) to make sure that the PTCL was disinvested by June. The government was anticipating to earn $1 billion by disinvesting majority shares of the PTCL, sources said. The meeting also discussed the privtization of the Karachi Electricity Supply Company within this year for which the ADB has committed $150m for restructuring the KESC. The meeting was informed that the efforts to privatize HBL and the UBL had also been accelerated. The government had injected Rs18bn into these banks to cover up their financial loss. The meeting was informed that the PC had paid about Rs5 billion under the golden handshake scheme and voluntary separation scheme for the privatization of a number of industrial units which had been either privatized or closed down for privatization. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010221 ------------------------------------------------------------------- Tapes be added to Supreme Court record: Benazir ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, Feb 20: PPP chairperson Benazir Bhutto on Tuesday requested the Supreme Court to direct the federation to bring the tapes and transcripts of conversation between Justice Qayyum and Saifur Rehman on the court's record. In an application, Ms Bhutto stated that the publication of taped conversation by The Sunday Times had proved that her trial was mala fide and biased. Ms Bhutto, whose appeal against her conviction would be taken up next week, said she was denied the opportunity of due process of law and that, on merit, there was no case against her. In another application, she submitted the legal opinion of prominent jurists of the world with regard to her conviction. The PPP leader pointed out that tapes had revealed conversation in connection with her case among then law minister Khalid Anwar, Saifur Rehman, former head of the Ehtesab Bureau; Justice Malik Qayyum and Justice Rashid Aziz Khan, former chief justice of the Lahore high Court. The tapes revealed a deep-rooted conspiracy between senior functionaries of the Nawaz Sharif government, the trial court judge and the then chief justice of the LHC to convict and sentence her at all costs and as quickly as possible without having regard to the merits of the case, she said. The trial court judge, she said, was pressured not only by the then chief justice of the LHC but also by Khalid Anwar and Saifur Rehman at the behest of the then prime minister Nawaz Sharif. Ms Bhutto stated she did not know whether the persons whose voices were audible in the tapes, had denied that the events, as recorded, did not transpire or initiated legal action against the newspaper. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- Expatriates send $667.5m in seven months ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Feb 22: The foreign exchange sent by overseas Pakistanis rose to $667.5 million in the first seven months of the current fiscal year from $549.3 million in a year-ago period. The State Bank statistics show an increase of 20 per cent in home remittances from various countries, including the United States, between July-January 2000-01 as compared to the remittances received in July-January 1999-00. Home remittances from Kuwait jumped to $106.8 million from $68 million chiefly because of compensation paid by Kuwait to Pakistani Gulf War affectees. But the increase of $38.8 million is a little over one third of the $118.2 million rise in total home remittances of the first seven months of the fiscal 2000-01. That is there has been a rather general upward trend in inflow of foreign exchange through home remittances. Bankers say what has helped them attract more foreign exchange through home remittances is a progressive improvement in delivery of the amount sent back home. The state-run as well as the private banks claim they have cut the time taken in the delivery of remittances to 24 hours in the cities and 48 hours in the rural areas. But this claim is hard to digest given the common complaints about delay in the delivery of remittances. The statistics show the largest amount of remittances ($189 million) came in from Saudi Arabia followed by the United Arab Emirates ($137 million) and Kuwait ($106.8 million) during the period under review. In the same period of fiscal 1999-2000 home remittances from Saudi Arabia were slightly higher at $190 million; followed by $98.8 million from UAE and $68 million from Kuwait. In the first seven months of the current fiscal year remittances from the USA and Dubai have risen significantly compared to the same period of last fiscal year. Remittances from the US rose from $44.8 million in July-January 1999-2000 to $74 million in July- January 2000-01 and those from Dubai went up from $58 million to $95 million. Remittances from the UK also increased from about $44 million to about $49 million. Overseas Pakistanis based in Canada, Norway and Abu Dhabi also sent back home slightly higher amounts of foreign exchange in the first seven months of this fiscal year than they had remitted in the same period of last fiscal year. And those based in Japan doubled the home remittances-from $0.9 million to $1.98 million. Home remittances averaging around a billion dollars per year are the second biggest source of foreign exchange earnings for Pakistan after exports. Bankers and financial analysts say home remittances can be increased manifold to help the country meet its foreign exchange liabilities. But the authorities have so far failed to do this. Senior bankers estimate that overseas Pakistanis send back home $8- $10 billion every year of which only $1 billion or so comes through banking channel and the rest through Hundi. They say the share of official remittances can be raised significantly by reducing the difference between interbank and kerb market exchange rates and by offering some incentives to those remitting money through banks.
BUSINESS & ECONOMY DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Task force reports submitted to govt: CBR working ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Feb 23: Task Force on Tax Administration has finalized its recommendations, which called for adopting universal self- assessment system, punitive penalties and prosecution as deterrence against tax evasion in Pakistan. A study conducted by Lahore University of Management Sciences (LUMS) on behalf of the Task Force on Tax Administration on Income Tax recommended the government to have a strong audit capacity, selective audit, a centralized information system intelligence, vigilant efforts, tax payers education and assistance programme to not only remove corruption from the system, but also increase revenues of the country. "We have submitted all reports to the government to extensively improve the functioning of the CBR with a view to stop mounting corruption from the organization", said the task force chairman Syed Shahid Hussain. He told this correspondent on the telephone from Washington that all the consultants hired by his task force were the people of great integrity and were the experts of their fields, who have done their jobs to the utmost satisfaction of the concerned officials. "Now this is upto the government to implement our various reports to achieve the objectives of increasing revenues and plugging the leakages", he added. The report foresees possible abuse of the system of selective audit and the possibility of revenue haemorrhage in the short term. This problem will be less serious once the department develops the credibility of being tough on tax evasion and fraud by pursing these cases in civil and criminal courts. The department has to build this credibility over the next 3-5 years. During the pilot phase of the proposed plan, the revenue haemorrhage issue can be addressed by closely monitoring those tax payers, who are major contributors to tax revenue and selecting those for detailed audit who show large variation from historical income and profit figure. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Hundreds of CBR officials reinstated ------------------------------------------------------------------- Correspondent ISLAMABAD, Feb 23: The government on Friday reinstated hundreds of tax officials who had been suspended on charges of "corruption and irregularities". The officials, who were sacked by the Central Board of Revenue, were given relief by the courts. The CBR on Nov 25, 2000 had suspended 1,040 officials on charges of corruption and irregularities. Applications of hundreds of tax officials have already been accepted by the courts and they have been issued stay order against their suspension. Cases of several others are still pending decision. Today the CBR issued a notification accepting all employees whose services have been restored by the courts. The notification said that though the services of the officials are being reinstated, "this is, however, subject to the final judgment of the High Court and/or Supreme Court of Pakistan on the CPSLA filed by the CBR, whichever is earlier". The order to suspend these employees was issued with the approval of Chief Executive Gen Pervez Musharraf. However, neither these officials were charge-sheeted nor any disciplinary proceedings were initiated against them due to lack of concrete evidence. The government has now brought several amendments in rules governing Civil Servants' Services to get rid of "corrupt" officers. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010218 ------------------------------------------------------------------- Defence budget being reduced: Shaukat ------------------------------------------------------------------- Nasir Jamal LAHORE, Feb 17: Finance Minister Shaukat Aziz said on Saturday that Pakistan's defence spending had been brought down to 4.70 per cent of the GDP from over eight per cent during the past several years. The minister, who was speaking at a seminar organized here by the Young Presidents Organization (YPO) on opportunities in Pakistan, said country's defence budget constituted 20 per cent of its annual budget. "We are bringing it (the defence spending) down," Aziz said in response to a question from a US businessman who quoted a report from a magazine that Pakistan was spending 30 per cent of its GNP to maintain its military might that left little for social sector and human development. Aziz said the (military) government was re-deploying resources to reduce poverty and human development by raising spending on social sector including education and healthcare. However, he said, the effort required assistance from "friends and donors". To another question again from another American businessman, the minister claimed that he did not see a "massive change in exchange rate in the next five years". But he did not rule out "exchange rate adjustments". He said exchange rate was related to inflation. "Though you will find (local) people complaining of high inflation, we are still at the low end of the spectrum if seen in the context of several other regional nations," he claimed. He forecast under five per cent differential in the inflation rates in the US and Pakistan. Some 160 foreign businessmen, who are members of the YPO, from several countries including the US, India and Saudi Arabia are visiting the Punjab capital these days. This is the first time YPO has brought its members in the country. Their visit coincides with the festival of Basant. Chief Executive Gen Pervez Musharraf is expected to fete them during his two-day stay in the city. Commerce Minister Abdul Razzak Dawood and Privatization Minister Altaf Saleem were also on the panel that briefed the participants about the government policies and effort to improve the investment and business climate in the country. Though journalists had been invited to cover the seminar by the Pakistan Information Department, they had to sneak into the hall. Aziz told the audience that the government was planning to publish a 10-year economic road-map for investors. He said 50 per cent of the budget went to debt servicing, adding a debt reduction strategy had already been formulated and approved by the cabinet and that it would soon be made public. He said structural reforms and debt reduction were critical to formation and implementation of sound economic policies. He said debt reduction required an increase in exports, formulation of sound fiscal policies and improved quality of governance. The minister forecast close to four per cent growth rate for the current fiscal year which could improve slightly should the country get good rains. He was hopeful that Pakistan would be able to achieve a growth rate in the range of 5-6 per cent in three years which was good enough to fight poverty. He said the growth target was not difficult to achieve in view of the historic rate of six per cent. He said it was only during the 1990s that the growth rate had come down. Replying a question from an Indian participant on trade between the two countries, Aziz said South Asia was the only region in the world where no economic block had been formed. He said (nations in the) other parts of the world had resolved all issues that impeded economic collaboration between them. Without naming Kashmir, he said Pakistan was open to talks for resolution of all fundamental issues with India in the national interests of both the countries. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- CBR to scan 53,300 import accounts ------------------------------------------------------------------- Ikram Hoti ISLAMABAD, Feb 23: Tax authorities have decided to scan import accounts of 53,300 businessmen for detecting tax evasion allegedly committed by them during the current financial year. The step is being taken by the Central Board of Revenue after finding out that 53,300 out of 92,800 manufacturers and traders registered with the sales tax department (57.4 per cent) have not paid a penny to the national exchequer, over the past seven months of the current fiscal year. This leaves the taxpayer compliance at 42.6 per cent, which is the lowest performance after the issuance of Sales Tax Act, 1990, sources said. Scrutiny of bank accounts of these taxpayers is also under consideration if import accounts did not help in detecting their turnovers and the amount of evasion committed. Of these listed tax evaders, 28,160 are those who have stopped paying the tax from the current financial year though they have filed the tax returns. There are 25,157 others who are neither paying anything in taxes nor are they filing tax returns. Failure of the sales tax audit department to detect the evasion has mainly led the CBR to take this drastic step, say sources. The audit department scanned ledgers of only 3,100 such listed persons and detected evasion of Rs4.5 billion, out of which only Rs925 million have been recovered during the current financial year. The sales tax department has already made attempts to locate those of the listed tax evaders, whose addresses have changed over the past one year, but with no success, as more than 90 percent are not traceable. The Customs department is now being asked to furnish details of imports of machinery, equipments, parts and raw materials plus finished goods imported by these persons. If they are doing business while remaining untraceable, the department would be approaching them with notices for not filing tax returns and for recovery of the unpaid amounts. Sources further revealed that the July-December 2000 compliance appraisal of the sales tax department by the IMF experts has resulted in a serious warning to the CBR that it would lead to refusal of the Fund to release the next tranche from the Stand By Arrangement if the situation did not improve. The number of registered persons short-filing the tax has also risen to 340. These taxpayers have paid only 10-40 per cent of the due amounts of tax, applying the trick of assessing tax rate below the stipulated 15 per cent. The IMF experts have also been expressing concern regarding the poor audit system of Pakistan which leaves 99 per cent of the taxpayers un-audited and hence encouraging tax evasion. The minimum audit slab determined by IMF is 25 per cent whereas the Pakistani sales tax department is able to scan ledgers of below one per cent of the registered taxpayers. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Banks borrow Rs2.9bn from State Bank ------------------------------------------------------------------- Reporter KARACHI, Feb 23: Banks had to borrow Rs2.9 billion overnight funds from the State Bank on Friday to square their liquidity positions. Friday being the last day for averaging out the weekly cash reserves normally witnesses heavy borrowing or huge lending-as the case may be-by the banks. That was why the inflow of more than Rs15 billion on Thursday was offset on Friday because of heavy borrowing by the banks that were short in their cash reserves. Banks are supposed to keep weekly cash reserves worth five per cent of their total deposits but they are allowed to let the reserves fall to four per cent on any day. Since the money market remained short of fund for several days before an inflow of over Rs15 billion on Thursday most banks had kept themselves short in cash reserves until Friday. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- CBR mulling new tax refund plan ------------------------------------------------------------------- Correspondent ISLAMABAD, Feb 22: A new export tax refund procedure for preventing refund frauds and simplifying the payment mechanism is being processed by the Central Board of Revenue. The CBR sources informed Dawn on Thursday that the new system (Fast Track Refund Clearance Procedure) aimed at zero-taxing the business activity and reducing the cost of refunds. The main purpose of the exercise is to boost exports by doing away the cost of compliance on the part of export manufacturers. This compliance cost is entailed in the production of various documents for proving the validity of claim and the authenticity of inputs used on the basis of which the refunds are admissible. A strong audit is being launched for the fast track export refund clearance under the new system, which for the exporters with poor compliance track record, would be bringing pre-fraud checks and assessment of a claim before sanctioning. The exporters with good compliance record would be rewarded under a method of export-profiling currently in use and is intended to be made more effective. The new system would take care of frauds associated with the refund process on the basis of fake (flying) input purchase invoices and the practice of issuing double invoices. Under the existing system the tax administration has to involve in unnecessary vigilance activity, which creates distortions in the tax regime. To remove such distortions, the CBR has been advised to give up the policy of retaining Rs4-5 billion accumulated amount per month from the refunds claimed by exporters. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- Talks with IMF mission satisfactory: Shaukat ------------------------------------------------------------------- Bureau Report ISLAMABAD, Feb 22: Minister for Finance Shaukat Aziz said here on Thursday that talks with the visiting IMF review mission had proved to be "very good" to qualify for the next 130-million- dollar tranche due in March this year. "Our talks had been very good with the IMF as both sides achieved an agreement on major issues," he further stated. Both sides, he claimed, were fully satisfied with the level of negotiations. Briefing reporters here on Thursday, he said that talks with the IMF would be finalised on Friday after which the officials would go back to Washington to propose to their executive board to disburse the next tranche. "This is absolutely untrue that the Fund has expressed any no- confidence in the policies of the present government," Aziz said adding that he was very much pleased with the outcome of negotiations with the IMF. He said that Pakistan had already been offered the first tranche of 196 million dollars, out of the 596 million dollars Standby Arrangement (SBA). The finance minister said that Pakistan would be offered three more instalments in March, June and September 2001. Responding to a question he said that the Fund officials were reasonable people and did not demand that Pakistan must achieve its annual targets despite the poor performance of the agricultural sector as a consequence of delayed rains. "They understand that under the present circumstances we can not achieve our growth targets". He said that the IMF was taking the "macro view" of the situation that was helping the government. He said that revenue targets could be readjusted in case there were more revenue shortfalls. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010222 ------------------------------------------------------------------- Deals worth $35.5m struck with Iraq ------------------------------------------------------------------- BAGHDAD, Feb 21: Pakistani delegation has struck various deals worth more than $35.5 million with Iraqi authorities during three- day visit to Baghdad. This was stated by state Minister and Chairman Export Promotion Bureau (EPB) Tariq Ikrim here on Wednesday. He said the visit was very fruitful and Pakistan is likely to get more orders worth millions of dollars for the supply of various consumers and construction work, medicines, surgical items, laboratory equipment, stationary items, agricultural implements, spare parts, tractors. Tariq Ikram said there had been a total change in the attitude of Iraqi government following Pakistan's support of Iraqi stand and strong condemnation of US-UK air strikes over Baghdad. He said Pakistan struck deal for the supply of 100,000 metric tons of wheat worth $12 million, 40,000 tons rice worth $10 million, wooden doors for $11 million and G I Pipes worth $2.5 million during the current visit to Iraq. "We have negotiated various other opportunities with Iraqi authorities in the field of education, agriculture, housing, trade and other areas. These opportunities will be capitalised soon", EPB Chairman said. He pointed out that on Wednesday, negotiations were held with Iraqi Housing Minister Dr Ma'an Sarsam for the construction of 500,000 tons low-cost houses in Iraq. He said this is a major tender, expected to involve more than $2.5 billion over the five years. "Pakistani construction companies and architect will come to Iraq soon to evaluate the tender which has the closing date in the middle of March", State Minister said. He said Iraqis have also expressed interest in utilizing computer in the designing and construction work.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010222 ------------------------------------------------------------------- NWFP investment plan fails to take off ------------------------------------------------------------------- Intikhab Amir PESHAWAR, Feb 21: The NWFP government has failed to materialize its 2000-01 financial year's investment plan, due to paucity of funds, official sources told Dawn on Wednesday. "Over seven months of the fiscal have passed and the NWFP government's investment plan could not take off," a provincial government official said, requesting anonymity. According to sources, the provincial government had planned to invest some Rs800m in different profit schemes during the 2000- 01. However, persistent financial constraints, faced to the provincial kitty right from the start of the fiscal, did not let the financial planners of the province to materialize their envisaged move. Investment was to be made from the provincial government's account No 1, which receives cash flows from the direct federal transfers made to the province every month from its share under the federal divisible pool (FDP). Reduced payments made to the province from the FDP and huge shortfall recorded in the provincial own receipts, during the first seven months of the fiscal, said the sources, incapacitated the provincial kitty to an extent that the government had hardly been able to pay monthly salaries to its employees besides meeting daily administrative expenses. After satisfying its hard-to-ignore monetary obligations, including monthly salary bill and other vital establishment charges, the provincial government had around Rs300m cash balance, in mid February, in its account No 1, maintained with the State Bank of Pakistan. Last year too, the provincial government could not materialize its investment plan to the fullest, forcing the province to lose the amount, it had envisaged to raise from the interest. This year again, the delay to invest the envisaged amount left negative impact on the provincial resources and the province would not raise the funds equal to the sum, it anticipated to receive from interest on the investment. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010221 ------------------------------------------------------------------- EC seeks assurances to give aid for Social Action Programme ------------------------------------------------------------------- Correspondent ISLAMABAD, Feb 20: The European Commission (EC), one of the potential donors of Rs500 billion Social Action Programme, has expressed its concern over the uncertain future of the programme and sought firm commitments from Islamabad before releasing funds for its execution. The EC, which has blocked its share of funds for SAP due to political reasons, has told Pakistan that though it gives importance to SAP in its overall economic assistance strategy, "it is concerned about its future". The EC expressed its apprehensions about the programme during a recent meeting with Pakistan mission in Brussels and sought details from Islamabad. Pakistan mission, a source said, has informed the government that they have initiated a process of regular consultation with the EC to get the funds released. The first meeting with the EC, it told the government, was held recently, in which the Commission emphasized the importance of SAP in the overall economic assistance strategy for Pakistan. The EC side told the mission that it attached great importance to SAP but wondered whether this programme was being accorded "as much priority and national commitment by the military government as it deserves". The European Commission has also expressed its serious concern over the low funding for the development of the social sectors by Islamabad. The source said that the Pakistani mission also raised the issue of blocked disbursements because of upfront committed investment not having been made. It was pointed out that the government of Pakistan was fully committed to the programme and attached great importance to improvements in literacy, education and basic health services. The EC was informed that the government was presently undertaking an indepth review of the programme to restructure its priorities in the light of its performance todate and also to provide a better interface with the ongoing devolution of power programme. The Commission was told that government had also decided that new local government's institutions would play a key role in the future implementation and financing of the programme. The Pakistan mission, the source said, also admitted that SAP was not being provided enough funding but this was a result of an overall squeeze in the public sector outlays and not because of a shift in government's priorities. Sources said the two sides also agreed that the issue of disbursement problem would be addressed in the mid-term review of the programme, which is due soon. Meanwhile, subsequent to this meeting with the European Commission, the Economic Affairs Division (EAD) has sought certain information on SAP-related issues from the Planning Commission for their onward transmission to EC, sources said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010221 ------------------------------------------------------------------- Rupee falls to 63.10 per $ in kerb ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Feb 20: The rupee on Tuesday hit a lifetime low, below 60 to a US dollar, in the inter-bank market after struggling hard for a few days to hold firm. In kerb market also, it slipped under 63 to a dollar on continued buying of greenbacks by speculators anticipating further fall in the rupee value. In the inter-bank market, the rupee closed at 60.16/60.20 to a US dollar on Tuesday showing an overnight fall of 40 paisa against the Monday close of 59.76/59.80 to a dollar. And in kerb, it finished at 63.05/63.10 per dollar registering an overnight loss of 50 paisa against the previous close of 62.55/62.60. Bankers said the State Bank saw the rupee fall from 59.80 on Monday to an intra-day low of 60.30 on Tuesday, but did not intervene. They said the rupee recovered modestly after Habib Bank and Citibank sold a few million dollars in the market: it closed at 60.16/60.20 to a dollar at the end of the day. Pakistan's net cash foreign exchange reserves are slightly over half a billion dollars at the moment. The low level of reserves makes it difficult for the State Bank to defend the rupee in the inter- bank market by selling dollars. What else makes more difficult is the IMF condition that the country should not be a net seller in the market. Bankers said the local currency fell sharply on heavy demand for dollars by some corporates including Dewan Salman group. The group bought at least $16 million in a few month forward deals. The rupee that began falling last week has so far lost 1.6 per cent of its value against the dollar in the inter-bank market. In the kerb market, it has shed 85 paisa or more than 1.3 per cent against the dollar in less than one week. Currency dealers said the rupee closed at 63.05/63.10 to a dollar for spot buying and selling on Tuesday. President of Forex Association of Pakistan Malik Bostan said speculators were out buying dollars for profit making. "The fall of the rupee in the inter-bank market has prompted heavy buying in the open market," he said when reached by Dawn over the telephone. Some currency dealers, who declined to be identified, said the State Bank buying of dollars continued side by side. Normally, the SBP suspends dollar buying from kerb, when the rupee is on the slide. No senior SBP official was ready to say anything on this subject. In the first six months of this fiscal year, the SBP bought more than $750 million from the open market. How much it bought in January and February this year is not known. The rupee came under pressure both in the inter-bank market as well as in the kerb late last week amidst reports that the IMF wants the SBP to stop - or at least reduce - financing of oil import bills on its own and pass it on to the market. Bankers said SBP has so far not indicated if it would do this. Bankers say the IMF demand for further opening up of foreign exchange market has also led importers in the past one week or so to make quick buyings of dollars. And it encouraged exporters to get slower in selling their export proceeds. Led by Assistant Director for Middle Eastern Department Ms Sena Ekin, an IMF review mission is currently in Pakistan to assess its performance in the light of the criteria set by the IMF under a $596 million standby credit. Pakistan got $192 million worth of first tranche out of this loan on November 30, 2000. The release of the second tranche is subject to a favourable report by the review mission and subsequent endorsement by the IMF board of directors. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010219 ------------------------------------------------------------------- Higher oil prices sought ------------------------------------------------------------------- Aamir Shafaat Khan MEHMOODKOT, Feb 18: Pak Arab Refinery Limited (PARCO) will issue an international tender for the export of surplus petrol following dilly-dallying by Iran on prices. This was stated by managing director, PARCO, Dr Shahid K. Haq at a press briefing at the refinery here on Sunday. "We will issue an international tender as Iran has offered very low price for our petrol", he said without giving any details as to when the company will invite the international tender. A PARCO official told reporters that the refinery has to invite international tender very urgently due to annual surplus of 400,000 to 500,000 tons of petrol following commissioning of the refinery. "We have the capacity to produce 1,500 tons per day but we have slashed the production to 1,000 tons", he said. The official said the government has also asked PARCO to cut the production of petrol by 25-30 per cent. The government has also asked other refineries to cut their production of petrol also. The main bottleneck in exporting surplus petrol is the lack of storage capacity for petrol in PARCO. "We are holding negotiations with National Refinery Limited (NRL) and Caltex to provide us storage facilities so that additional production could be exported immediately", the official said.Back to the top
EDITORIALS & FEATURES DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010218 ------------------------------------------------------------------- 'The first observation' ------------------------------------------------------------------- Ardeshir Cowasjee "The first observation that I would like to make is this: you will no doubt agree with me that the first duty of a government is to maintain law and order, so that the life, property and religious beliefs of its subjects are fully protected by the state." Such was the first dictum of the founder of this country delivered during his address of August 11, 1947, to the first constituent assembly of Pakistan. This 'first duty' has never been fulfilled, this country has never been run under either law or order, nor have we had an independent judiciary able to enforce both, nor a junta nor a parliament, nor an administration slightly interested in doing so. All that has been achieved is the loss of half the country within the space of 25 years of its life - a loss about which we are still arguing and speculating. What is now left to us seems, as things are at this point in time, to be doomed. Another set of tapes has suddenly emerged, produced by yet another set of spooks. These were sent to The Sunday Times (London) which published an article on February 4 on the judicial system of our country, reproducing transcripts of the tapes. Yesterday, February 17, an NNI report had it that "the PPP International Secretariat has applied to The Sunday Times to get a copy of the said tapes so that they may be placed before the Supreme Court when it takes up the appeal of former premier Benazir Bhutto seeking an honourable acquittal from her conviction later this month, said a PPP press release......" What seems odd about this is that on December, 27, 2000, a Karachi English daily carried an NNI story headed: 'Benazir may return with tapes to overturn trial: report'. This report told us that: "A long-time confidant of PPP chairperson and former prime minister Benazir Bhutto in London, Bashir Riaz, told the Indian daily [The Hindustan Times] "The PPP has a tape containing conversations between Saifur Rahman, chief of accountability bureau and close confident of Nawaz Sharif, and several judges which would make the whole trial and Bibi's conviction a farce. Bashir Riaz claimed to have the said tape in his possession." On December 31, 2000, a PPI report in the same daily confirmed that the PPP had the tapes: "....Riaz said that the PPP wanted to take immediate steps to clear Benazir's name. He said that the party had new evidence that proved the Nawaz government had pressured the judiciary to convict Benazir. 'We've got excellent tape recordings,' he added." Now, if the PPP had the tapes in December, presumably the same tapes sent to The Sunday Times in February, how come the PPP is now making noises about asking The Sunday Times to let them have a copy of the tapes when they themselves are the providers of the tapes? This makes no sense. Is it a question of selective amnesia or an obsessive disregard of facts? On February 16, a Dawn Islamabad Bureau report from Attock Fort headed "Asif ready to pay 90 per cent property in 'his name'." It read: "Asif Zardari, jailed husband of former prime minister Ms Benazir Bhutto, said on Thursday that he was ready to hand over all his properties to the National Accountability Bureau (NAB) if only 10 per cent of those properties which NAB claims are worth $ 1.5 billion is given to him." Presumably husband Asif is referring to is the $ 1.5 billion worth of assets listed in an Islamabad daily of February 7. These covert accounts were: USA - Lapworth Investment Inc; Intrafood Inc; Dynatel Trading Company; A. S. Reality Inc; Bon Voyage Travel Consultants Inc; British Virgin Islands - Bomer Finance Inc; Mariston Securities Inc; Marleton Business S.A.; Capricorn Trading S.A.; Dargal Associated S.A.; Pagarita Consulting Inc; Marvil Associated Inc; Penbury Finance Ltd; Oxton Trading Ltd; Brinslen Invest S.A.; Climitex Holding S.A.; Elkins Holding S.A.; Minterier Invest Limited (Asif is a true joker - this is his short form for our interior ministry); Silver Nut Investments Inc; Tacolen Investment Ltd; Tulcroton Invest S.A.; Marledon Invest S.A.; Dustan Trading Inc; Reconstruction and Development Finance Inc; Nasseem Alexander Inc. (Some of these names are also included in the US Senate Committee Report, details of which were printed in this column last Sunday.) Enumerating these accounts, according to the Islamabad daily: "Based on available data, the total value of the located assets amount to $ 1.5 billion approximately, as estimated." Also listed are various other real estate properties owned by Benasif & Co in UK, France and the US. Asif's generous offer is reminiscent of the statement made on the floor of the Senate at the end of 1997 by the then law minister, Khalid Anwer. Following a discovery of the celebrated bank accounts in Switzerland, Khalid noted that Benazir had denied that the dummy companies in whose names the money was lying were beneficially owned by her or by her husband. He suggested a simple solution to resolve the entire controversy once and for all. All Benazir and Asif had to do was to write a one sentence letter to the Swiss banks stating that they had no objection if the money lying there was transferred to the Government of Pakistan. If they were not the beneficial owners, the banks would disregard their statement, but if they were, the money would be transferred to our government. That would have ended the matter. On the subject of matters of public interest, not minor by any means, such as the desecration of the people's parks and open spaces, the people may be interested to know how our conscientious judiciary deals with public interest cases filed in our courts in which politicians are involved. Take the case of the infamous Costa Livina under construction in the Bagh-e-Ibne-Qasim (Clifton Park). In 1972, Kehkashan Scheme 5 (Clifton) was illegally amended to include an observation tower with a revolving restaurant atop it to be built within the people's park. Our political vultures had an interest in the desecration of the 132 acres of open space demarcated for the use and pleasure of the public. In 1976, this tower plot (ST-15 Block 3) was allotted to Marvi Investments ostensibly for the construction of the tower. In April 1990, this amenity plot was illegally converted into a commercial plot and within a month the ownership was transferred to Asif-cronies Pearl Builders, Dr Zulfikar Mirza & Co. Within two months, the KBCA approved a plan for the construction of a 17-storey high-rise upon which was shown a revolving restaurant. The citizens intervened with the authorities; political shenanigans followed; the citizens naturally lost. In 1993 the builders commenced construction and the citizens filed a constitutional petition in the Sindh High Court. In January 1994, the court granted status quo and the construction was stopped. In September 1995, judges of the High Court dismissed the citizens' petition. In 1996, an appeal was filed in the Supreme Court and the construction was once again stopped. In 1999, a five-member bench heard the appeal and then gave a detailed order - no high-rise to be constructed; what had so far been constructed was to be demolished, the builders to submit a revised plan for the tower. The citizens had won. The builders, absconders and others filed a review application in the Supreme Court which was dismissed on merit. They then filed a revised plan which was rejected by the KBCA stating that it was contrary to the Supreme Court judgement. Another review application was filed in the Supreme Court seeking a review of the same court's review order. No provision in law exists for such a move. One judge of our apex court referred the matter to be heard by a five-member bench of his court. The application is still pending. In August 1999, the builders filed a suit of sorts in the Sindh High Court which was dismissed. Yet another suit was filed (1756/99) and a single judge restrained the KBCA from demolishing the building. In 2000, the citizens applied to the Sindh High Court for a rejection of this suit. The case was heard/adjourned on August 15, 16 and 29, on September 18, on October 10, on November 6, 21, and 29, on December 4, 7, 14, 18 and 21. On the last date the hearings were completed and the judge reserved his order. The half-constructed high-rise still stands despite the Supreme Court orders, and the politicians and absconders involved are anxiously waiting for 'the restoration of democracy'. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- The death of politics ------------------------------------------------------------------- Ayaz Amir WHILE the national press has always been laden with a fair amount of trash, trawling through that trash every morning used to take some time. Not any more. Newspapers are a quick read these days. Such has been the success of the policy of free expression that after 14 months of a dispensation whose foremost specialization is emerging as the capacity to put the nation to sleep, there is nothing left to say. After all how many times can you launch the same bromides, utter the same cliches? It's a funny situation we are in. While the military government proceeds on its chosen path, undeterred by criticism or even quite often the dictates of common sense, the national press, having long arrived at the frontiers of free speech, is beginning to droop and falter, showing unmistakable signs of intellectual exhaustion. The latest tank armour has plastic material which deflects shells fired at it. A similar protective coating seems to cover this government's leading figures, making them immune to sarcasm, irony or even the brightest shafts of ridicule. General Ziaul Haq, turning hypocrisy into an art form, used to take in criticism but then laugh it away. His successors on the general staff have gone one better than him: they have simply unplugged their earphones and put them aside. What we have as a consequence are a series of parallel lines: the army high command and the nation, the government and the press, the National Reconstruction Bureau and reality, NADRA and the voting lists, General Moin Haider's liberal hawkishness and the unyielding situation on the ground, Shaukat Aziz's optimism and the contraction of the economy. All these are parallel tracks which do not meet. At the advent of the October Revolution if the bazaar was depressed, politics was bright with hope, while the national press, always prone to take itself more seriously than the circumstances allow, was swept by the delusion that its hallowed word, burnished by the government's commitment to freedom of expression, would illumine the paths of reform and national renewal. It was a sign of the times that when General Musharraf's photo appeared with his two pet pups in his arms, the maudlin section of the national press, famous for such intuitive leaps, was quick to label him a liberal reformer. Pups are associated with playfulness. A pair of black and white pups gives its name to a famous brand of Scotch. Perhaps for the first time in recent history were pups in the arms of a Generalissimo taken as symbols of liberal intent. How long ago all this seems. The press, as already noted, has exhausted its ammunition. The political field presents the aspect of an oasis through which a conquering army has passed. What is there to write about? The politics of the Muslim League, the return of Benazir, the Great Mandate's telephone conversations from the Holy Land, India's extension of a ceasefire in Kashmir, some maulana's antics in a corner of the country, some more tough pronouncements from the interior minister, some more news from the Muslim League battlefront, another bulletin regarding the struggle for democracy from Nawabzada Nasrullah Khan. Every now and then, even as these exciting events unfold, some politician or newspaper pundit rises from the gloom to helpfully suggest 'exit strategies' for the military government. Nothing is more calculated to tempt a cynic to reach for his gun. Did General Musharraf or the generals who carted Nawaz Shariff off to prison on October 12 (1999) consult any politician or pundit over their 'entrance strategy'? Are they likely to be out of breath for want of an 'exit strategy'? A chowkidar kicks and screams, a patwari or a thanedar moves heaven and earth, if his job is threatened. And here it is being seriously suggested that the present group of generals are so keenly aware of their mounting difficulties that they are looking for a safe way to relinquish power. For naivete of this order there is no cure. Tension was writ large on General Musharraf's face at the height of the Kargil crisis. Today he shows every sign of relishing his role as senior statesman, the Lee Kuan Yew of the Islamic Republic. His smile is easier, his gestures more relaxed. Most of the corps commanders too are enjoying their jobs. After all, playing the role of civilian administrators and running hockey and cricket affairs (and in the case of Lt-Gen Jamshed Gulzar assuming, for all practical purposes, the role of Chairman, Municipal Corporation, Rawalpindi) are infinitely preferable to the spartan routine of military supervision. Lt-Gen Gulzar is not to be blamed. His diocese runs from 'Pindi to the farthest corners of the north. Anyone in his place would find the task of inspecting Rawalpindi's roads and handing out shields to the Islamabad Police (whose senior officers seem to be a bunch of public relations specialists) more fun than keeping his eyes on training or visiting Siachen. This approach betokens the right priorities, for let us not forget that amongst the easiest tastes to acquire is the taste for power. And once acquired it is a hard thing giving up. The extended tribulations of Mian Azhar, the Chaudries of Gujrat, Exalted Son Ejazul Haq and the other Muslim League hopefuls should fool no one. Military leaders always stand in need of civilian fig- leafs. Ayub needed his Convention League, Yahya his collaborators, Zia his anti-PPP coalition, the ISI its Islami Jamhoori Ittehad. Forget about Pakistan's tin-pot Caesars. Even Stalin, history's most feared despot, was not above using the fig-leaf of democratic or collegial consultation. Musharraf's military government may be learning on the job (an expensive form of education for which the nation has to pay the bills) but it too will have to abide by the enduring principles of praetorianism. Sooner or later it will require a fig-leaf to cover its nakedness. That is when the Mian Azhars will come into their own. Not to show any exit strategies to General Musharraf, a favour he can do without. But to act as cheer-leaders to the new dispensation when the military government discards its uniform and puts on a sherwani and declares, in accordance with the wishes of the Supreme Court, that democracy has been restored. As connoisseurs of this political genre will recognize, the script is familiar except for a vital difference. While previous military governments were strong affairs, they had to put up with strong democratic movements. A cynical view of the past should not skate lightly over the democratic resistance to Ayub and Zia (Yahya's being a slightly different case). This time round, seen from any angle, Pakistan has a weak military government, amateurish in performance and unsure of its direction. Yet any strength it has comes in no small measure from the discrediting and disarray of the political parties. The Daughter of the East in exile, tarred by the brush of corruption. The PPP at home a pathetic collection of flunkeys and underlings with no initiative of their own and dancing to whatever direction they get from abroad. The Heavy Mandate, proving true to its roots, choosing flight over defiance. The Muslim League riven by dissension: one half dreaming of a Nawaz Sharif return, the other frustrated with the military government's failure to take it on board. Guided by sharper political instincts, Musharraf's generals could have brought about the crack-up of the Muslim League sooner. All they had to do was to pick a favourite horse round which the dispirited battalions of the League, leaving Nawaz Sharif to his fate, would quickly have gathered. The trouble was that in the beginning these generals considered themselves above such games. They saw themselves as Kemalist reformers destined to turn the country's fortunes around. Like other illusions this one too is buried, the old truths of military interventionism reasserting themselves. So often has this cycle been repeated that it can have little novelty for those who have seen it before. Is it any wonder then if newspapers, which must feed on their environment, are proving such poor starts to the day? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Israel as a colonial venture ------------------------------------------------------------------- Irfan Husain SOMETIMES things have to get worse before they can get better. Palestine is currently at this juncture: the election of a war criminal like Sharon as prime minister of Israel will sharpen the contradiction between the dictates of a lasting peace and the illegal occupation of Palestinian land. Conventional wisdom has it that Sharon's rise to supreme power in Israel will end any chance of a peaceful settlement of the festering dispute. In reality, what it will end is any lingering false hope that the Oslo accords could lead to a lasting peace. It has become clear that despite the huge disparity between Israeli and Palestinian military, political and economic strength, a settlement imposed through sheer might and diplomatic arm-twisting cannot long endure. While Yasser Arafat and his Palestinian Authority may have a vested interest in accepting a fragmented chunk of territory as a means to acquire the trappings (and personal financial benefits) of statehood, the common Palestinian, seeing no benefit in such an arrangement, has strongly rejected it. For years, the 'peace process' has meandered on, promising little and delivering even less. The Israelis were in a win-win situation: the longer it took to reach a final settlement, the longer they could retain their conquered territories and fill them with more Jewish settlements. Even when they signed a peace accord, they would retain large swathes of territory on the pretext of 'security' as well as for roads connecting their settlements with each other and with Israel. There has been great concern in the West, most notably in America, over the Palestinian refusal to accept Barak's proposals. Clinton went to the extraordinary extent of blaming Arafat's obduracy for this impasse that, in turn, has resulted in the on-going bloodshed. An impression has been created in the West that Barak was being very generous in his offer. Actually, he was offering nothing more than to return only some of the territories captured by force. By some trick of logic and morality, Iraqi occupation of Kuwait cannot be tolerated, but Israeli occupation of Palestine is perfectly all right. Let us see just what the Palestinians were being asked to accept: according to the western media, they would get back 95% of their land. This is not true as the actual figure is around 83% since a large area of the West Bank was annexed to Jerusalem years ago, and this would naturally go to Israel, together with most of the holy city. Then, in return for about 5% of their fertile land on which settlements have been built, Palestinians were being asked to accept arid land near the Gaza strip. An indefinite military presence in the West Bank near Jordan was part of the bitter pill on offer, as was the Israeli right to fly over Palestinian airspace. And to put things in clearer perspective, we need to remember that the West Bank and Gaza represent only 22% of the original, pre-Israel Palestine. These restrictions on sovereignty, when combined with the Israeli settlements and road network in the occupied areas, will give some idea why the intifada is seen as the only option left for the Palestinians. Barak's insistence on retaining Israeli control and sovereignty over the Muslim holy sites of Jerusalem was simply the last straw. Clearly, statehood under these terms would have been unacceptable to any people anywhere. Now that the mask of peace is off, we can see Israel for what it has really been all along; a colony created out of conquered land. The problem is that it came into being in a period that saw the end of colonization. And while it was recognized and legitimized by the United Nations, its fundamentally colonial nature did not change: it displayed the same conqueror's arrogance towards the Palestinians that it did towards its neighbours. Because of its overbearing attitude and its reliance on open-ended American military and diplomatic support, it has always been perceived as a western outpost forcibly planted in the Middle East to secure western political and economic goals. No matter how good the relations between colonialists and subjugated people, there comes a point in time when the latter decide to throw off the yoke and gain independence. Most ex- colonies have received external material and moral support in their struggle, but in the case of Israel, the true nature of the conflict was blurred by the Zionist claim to Palestine on mythical and religious grounds. Add to this European and American guilt over the genocide of Jews committed by the Nazis, and it is easy to see why the rights of the victims have been largely overlooked in the West. David Hirst, probably the most well-informed and perceptive journalist writing about the Middle East today, wrote in a recent issue of the Guardian: "...the risk is... that sooner or later the success it [Israel] has achieved will be challenged and, in the end, instead of being the exception in the annals of European colonialism, it will suffer the same fate as all the rest." He goes on to quote Rami Khouri, a Jordanian columnist as writing that the longer the intifada continues, "the more self-evident it becomes that the underlying policy of colonial occupation - outdated, counter-productive, morally and politically rejected by the entire world - is unsustainable and nearing its end." The current low-intensity guerilla warfare being waged by the Palestinians does not present a military challenge to the mighty Israeli war machine. Instead, it erodes its image abroad, and its morale at home. As the contradictions between Israel's need to be accepted and recognized by its neighbours and its insatiable appetite for Palestinian land become more apparent, any acceptable peace accord recedes into the realm of the impossible. Even if Arafat were to sell out his people and accept whatever the Israelis offer him, this would not result in a lasting settlement. There is now a broad consensus that a viable Palestinian state must emerge with its capital in Jerusalem. Anything short of this is a non-starter. The problem is that the majority of Israelis, encouraged by successive governments to think that their might would automatically result in security, settlements and legitimacy, are not prepared to accept an agreement based on equality with, and respect for, the Palestinians. With the typically colonial and racist attitude of superiority and arrogance, they remain confident that their firepower and the unlimited American support they enjoy will prevail. This easy confidence is reminiscent of French and British attitudes towards their colonies and their subjects: until the very end, Europeans could not come to terms with the intensity of the feelings their subjects harboured. The Colonel Blimps sat in their clubs, nursing their chota pegs, complaining about he ingratitude of the natives, until they had to pack their bags and go home. Now, the Raj lives on only in romantic movies and books. How long before the Israeli venture meets the same fate? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010224 ------------------------------------------------------------------- Judicial-executive interactions ------------------------------------------------------------------- Khalid Anwer AN important issue which has surfaced in recent days relates to the question as to whether, and if so, in what circumstances, it is appropriate for a law minister to interact with the judiciary. Although the question has arisen in the crucible of an intense political controversy I propose to discuss it both academically as well as specifically. The take-off point must inevitably be the Constitution itself. Article 99 of the Constitution provides for the framing of Rules of Business. These Rules are in essence the template which regulates the functioning of the great departments of the state. Under Schedule II, the law ministry is responsible for interacting with the Supreme Court and the High Courts. This then is part of the constitutional responsibility of the law minister. It is worth trying to understand the rationale for this. The judicial branch of the state, like the other branches, has numerous requirements which need to be resolved. For example, one judge may anticipate a pension problem, another may have a security problem. The judiciary may find that its budgetary requirements are inadequate and so forth. All these problems come to the law ministry for resolution. Amongst the most important is the question of the enforcement of the laws of the land. Let us take a simple illustration. Billions of rupees in tax revenue may be blocked because of pending litigation. The government has a legitimate interest in seeking an expeditious disposal of tax cases. The problem can only be resolved by an interaction between the executive and the judiciary. The law ministry provides the interface and channels of communication. There has never been a law minister in the history of Pakistan who has not interacted with the Chief Justice of the Supreme Court or the Chief Justices and senior judges of the High Courts. This is so not merely in relation to Pakistan but also in other countries. For example, Professor Robert Stevens (formerly professor of law at Yale and then Master of Pembroke College, Oxford) in The Independence of the Judiciary has observed that "in the English system the judges control neither the administration of the courts nor their finances." The position is not very different in the United States. Justice Burger, who was Chief Justice of the United States for 17 years, made it a point to develop cordial relations with Congress. One commentator remarked that the Chief Justice had "charmed" the Chairman of the House Subcommittee dealing with the court's budget. (See "The Brethren" by Woodward and Armstrong). The present Chief Justice, William Rehnquist, is even more of an establishment figure. He was appointed by a Republican president and had earlier served as assistant attorney-general and, rather ironically, had officially supported telephone tapping without a court order. His was, of course, the key vote which led to George Bush's winning in the litigation with the Democratic candidate, Al Gore, and thus ascending to the presidency. The situation in India is similar to that in Pakistan. Serious problems normally arise not because there are communications between the law minister and the judges but when the channels of communication break down. A good illustration is provided by the resignation last year of law minister Ramchandani because of a serious falling out with Chief Justice Anand of India. (The Chief Justice suspected that the law minister was responsible for the leaking to the press of a news item about his wife.) The result of this was to poison the tenor of official communications between them. As tempers waxed and the courtesies of discourse waned, the normal flow of official business was seriously disrupted and eventually the law minister was asked to resign. The prime minister preferred to maintain relations with the Chief Justice rather than the law minister. As law minister one of my important responsibilities related to the expeditious disposal of banking cases. As is well known, the recovery of billions of rupees in bad debts was held up in the courts. In order to dispose of these cases I introduced a new law in 1997 which led to an enormous disposal of cases. At a rough estimate, I would say, that in the period of two years after the passage of the new law probably more suits were decreed in favour of banks than in the previous twenty years. Every month I personally monitored reports of the disposal of these cases. I called openly on judges in various courts and many of those visits were shown on television. There was no impropriety about it. There was no concealment about it. A second major area of concern related to the functioning of the Ehtesab Act, 1997. The important aspect of this Act, for purposes of the present matter, is the fact that Section 10 provided that Ehtesab cases would be heard on a day-to-day basis and disposed of within 60 days. The Act (unlike the NAB law) also provided that the Ehtesab judge be nominated by the Chief Justice and not the government. Benazir Bhutto's was a high-profile case. It was inevitable that public attention should be focused on it. If the law was not being followed in her case what was the likelihood of its being followed in other cases. The essence of accountability is that it focuses on the big fish - if an accountability net catches minnows and allows whales to escape it is not worth retaining. If the queen on the political chessboard can move unhindered, it little matters what happens to the pawns. The delays in her case provided a justifiable cause for concern. Instead of the case proceeding on a day-to-day basis, it lingered on for months on end. (It needs reiteration that in the transcript of the allegedly taped conversation I have not, repeat not, indicated directly or indirectly, what the decision should be. I am merely alleged to have asked for an expeditious disposal of the case.) Indeed, the government could even have issued a statement expressing its concern about the delay in disposal as the present government has done in other accountability cases. The Benazir Bhutto case also had an important historical context. After the dismissal of the first Benazir Bhutto government, a large number of references were filed against her under the then prevailing accountability law. It is a matter of historical record that these cases were not disposed of during its entire tenure of office. Delaying tactics by her succeeded brilliantly. She was determined that the cases would not be decided and her will prevailed. She went scot free. In her imperial style she took it as her right. Towards the end of 1993 she once again triumphantly emerged as prime minister. Those cases which had taken years without being disposed of were now dismissed, literally in a matter of days. Since the prosecutors were now functioning under her orders it was inevitable that she should be acquitted in all those cases. It is understandable that she was determined to re-use the strategy which had so brilliantly succeeded the first time round. The iron butterfly was once again planning to gracefully ascend above her baffled prosecutors. Unlike the provisions of the Ehtesab Act, English law does not lay down any specific time period for disposal of cases. However, cases in which judges have delayed rendering judgment within a reasonable period have been viewed with disfavour. An important case which highlights the point, is that of Goose vs. Wilson Sandford & Co. (The Times Law Reports, 1998). The brief facts of the case are that the plaintiff had filed a suit against the defendants for damages. The judgment was delayed for a period of 20 months. What did the plaintiff do? He requested his solicitors to write a letter to the judge complaining about the delay. They did so. The judge's clerk replied that the judgment was in the process of being drafted. Eventually the judge decided against the plaintiff. He appealed. What did the Court of Appeal do? Did it censure the plaintiff's solicitors for addressing a letter to the judge instead, of making an application? No. Instead it censured the judge. Here are some of the observations made by the Court of Appeal: "Compelling parties to await judgment for indefinitely extended periods prolonged, and probably increased, the stress and anxiety inevitably caused by litigation, and weakened public confidence in the whole judicial process. Left unchecked, it would be ultimately subversive of the rule of law. A situation like this must never occur again." Stronger words can scarcely be envisioned. The delay is described as being "subversive of the rule of law". That too in what was merely a civil dispute. Is not the position much worse in a criminal prosecution against a former prime minister who is accused of taking commissions running into millions of dollars? The above case is not unprecedented. In the case of Rolled Steel Products vs. British Steel Corporation [1985] (3) A.E.R. 52), the Court of Appeal expressed its concern by observing that such delays could "create suspicion among litigants who lose". Another illustration of a private communication by a lawyer to a judge is provided by the case of International Credit & Investment Co. Ltd. vs. S.K. Adham & others (No.CH 1992-F-8667). The defendants refused to appear and defend the case. Instead, they engaged a firm of English solicitors who simply wrote a letter to the judge and informed him of their opinion that the High Court in England was not competent to deal with the case. Of course, if this was really the position then they should have filed an application to this effect. They had not done so. Instead, they had simply written a letter. The judge did not, however, consider this unethical or improper. He referred to the letter in his judgment and observed: "If Messrs. Berwin Leighton (the English solicitors) wish to maintain that view I would be delighted if they, on behalf of their clients would brief counsel to come and argue the point before me." He then proceeded to decide the case on the merits. IN Pakistan the position is equally clear. Suppose a judge is not disposing of a case. The file is lying in the judge's chamber. What is an aggrieved party to do? The answer can readily be found by consulting any number of experienced counsel at random. Numerous illustrations would be found of cases in which, in such circumstances, a counsel has gone and met the judge in his chamber and politely requested that the judgment may kindly be delivered as soon as possible. It happens routinely and there is no impropriety in this. If a private lawyer can complain to a judge about a delay in deciding a case, what debars a law minister, who has a stronger reason for so requesting, from politely requesting an expeditious disposal of a case. It should be remembered that the stronger reason arises out of his dual capacity: firstly, the government itself is the single largest litigant in the country and all such litigation is carried on under the umbrella of the law ministry, and, secondly, the law minister also has responsibilities for ensuring that the law of the land is observed. Taken in tandem, these are formidable reasons. It is natural for the executive to seek an early disposal of cases and it is equally natural for judges to give primacy to the quality of their judgments rather than their quantity. There is nothing wrong with a judicial-executive interaction on the matter. The point can be put slightly differently as well. Can it be a crime to ask that the law should be enforced? Only a biased mind and a prejudiced tongue can so assert. This has been confirmed by the public comment of an eminent former Chief Justice of the Sindh High Court and a judge of the Supreme Court of Pakistan, Mr. Justice Wajihuddin Ahmed, who in The News dated February 5, was quoted as saying that for a law minister to request a court of law to decide a case expeditiously does not amount to contempt of court. Now I turn to the genuineness of the alleged transcripts. In the above I have assumed their genuineness. In fact, there is no reason to do so. To doctor tapes is the easiest thing in the world. The learned judge involved has categorically denied their genuineness. Without wishing to go into details, what can be done at this stage is to point out the manifest discrepancies which cast doubt on the genuineness of the transcripts. (a) Let us begin with Mr. Rahim, the alleged author, of the letter dated January 29, sent to the president "through official channels". The Presidency has confirmed that the letter had not reached it prior to the publication of the Sunday Times report on February 4, 2001. How then could the letter have leaked out in advance? In fact, conclusive evidence exists which demonstrates the falsity of Mr Rahim's version. The letter which reached the Presidency was sent from Austria. Do the official channels of the Intelligence Bureau run through the blue Danube? (What, I wonder, is the name of Benazir's favourite waltz?) (b) The December 27, 2000, issue of The News carries a report datelined from London stating that the People's Party was in possession of tapes of conversations between Mr. Saifur Rehman with several judges. How, therefore, could a letter, which had not yet been written, be in the possession of the People's Party? (c) Mr. Rahim is stated to be a permanent employee of the Intelligence Bureau. He has now apparently given up his permanent job in order to live as an exile in England. Obviously Mr. Rahim has made a major financial sacrifice. Is it not clear beyond any conceivable doubt that he must have been more than adequately remunerated by some hidden hand for this? Whose is that hidden hand? (d) It is a well established fact that Benazir Bhutto while, on the one hand, excoriating the Intelligence Agencies, has, on the other, maintained close relationships with them. When President Farooq Leghari sacked her government, one of the grounds given in the dissolution order was that she had ordered the tapping of the telephones of "judges of the superior courts, leaders of political parties and high-ranking military and civil officials." The court upheld this charge in the light of the detailed evidence and transcripts which came on record. With her intimate knowledge of the functioning of the Intelligence Bureau, which used to report directly to her, it should not cause any surprise that she has now been able to utilize, or misutilize, links which had been forged in the past. (e) Benazir Bhutto's conduct on the public disclosure of the alleged letter is also extraordinarily noteworthy. She delightedly proclaimed to the press that this was the best news she had received in the past four years and that it was a "miracle". If indeed it was a "miracle" then the only possible comment is that this perhaps is the only documented miracle in recorded history which has been planned, organized and paid for in foreign exchange. Miracles are supposed to have a divine provenance - but not this one. It is clearly a homegrown product. (f) Although it would be fair to say that my name is unlikely to appear prominently in a list of the ardent admirers of Benazir Bhutto, I have never doubted her formidable skills as a polemicist and a publicist. The West has nothing to teach the Daughter of the East insofar as the arts of media suasion are concerned. Indeed, if her administrative abilities had even remotely approached her finely honed skills as a publicist, this country would have been a far better governed country than it was during her two terms of office. She has the advantage of coming from a smaller province while enjoying support in the largest one. If she could bring herself to resist the alliterative allures of creating confrontations between Lahore and Larkana she could still be a potent force for the unification of a fissiparous country riven by schismatic fissures. Sadly, she has never been able to resist short-term political gains : distant political horizons have no charm for her. The paths of statesmanship lie in conflict resolution rather than the opposite. But for her, during her tenure in office, the Shavian maxim "the art of government is the organization of idolatry" remained the lodestar of her life. She lived by it then and echoes of this maxim still swirl around her even in exile. (g) She claims she wants an impartial court. However, her ostensible concerns about ensuring a completely impartial judiciary have surfaced in somewhat peculiar ways in the past. When she was prime minister she appointed a judge to the Lahore High Court who was at that time the accused in a murder trial. Another peculiar appointment was that of a gentleman whose earlier illegal appointment by her to another post had led the court to uphold the dismissal of her first government (See PLD 1991 Lah. 78, 163). But despite this verdict, she persisted in her endeavours. Was it not tempting Providence to once again appoint the same officer, but this time to an even more elevated position? Or, perhaps, she believed in the Wildean epigram that Providence was old enough to resist temptation. Or perhaps she just did not care. It would be otiose to multiply further examples of her hubris. (h) She claims she seeks the truth. Her definition of the truth however is reminiscent of Marxist-Leninist theorists who used to proclaim that truth is a "functional" concept - that definition which advanced the revolutionary cause was the only correct one. So it is with her. If a court acquits her, it is impartial - not otherwise. If an election propels her to power it is fair - not otherwise. (i) Benazir Bhutto proclaims, loudly and repetitiously, that she cannot expect a fair trial in Pakistan because the judicial system is biased against her. What should we do? Abolish all the courts in Pakistan for her benefit? She seeks higher standards of justice than are available in this country. In the 18th century the American colonists sought to throw off the yoke of British rule. Their demand for independence was pitched in extravagant terms as the struggle of all humanity for freedom. It evoked a sardonic response from Dr Samuel Johnson, the great lexicographer, who wondered why it was that the loudest yelps for liberty came from the slave drivers of America. So also do we wonder why no court is good enough to satisfy her urge for justice. (j) Let us assume that all courts in Pakistan, no matter where located or of whatever level, are biased against her. But there is still another option open to her. There is still another open judicial door which beckons her. The court in Switzerland, which has in its possession the original bank statements, has already indicted her for money laundering. She has evaded appearing in Switzerland up to now. She travels all around the world but Switzerland is a country that she sedulously avoids. Why does she not go there? Surely the Swiss court is impartial. However, one can be certain that she will never appear in Switzerland. She is afraid, not of a partial court but an impartial one. That is the bottom line. (k) Her acolytes follow with scrupulosity in her footsteps. Do they not know that the Supreme Court has fixed the hearing of her appeal on the 26th of this month? How is it then that they so clamorously proclaim her innocence? Why is it that they use the platforms of the bar associations to pursue their party political agenda. The disputed tapes have admittedly been in her possession for several months. Yet, how is it that they have only now been released on the eve of the hearing before the Supreme Court? Can this be a coincidence? Or is it evidence of a deeper conspiracy?
SPORTS DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010223 ------------------------------------------------------------------- Pakistan overcome rusty fielding to beat New Zealand ------------------------------------------------------------------- WELLINGTON, Feb 22: Pakistan went 2-1 up over New Zealand here on Thursday night with two to play in the one day series, but were fined in the process for slow play. They skittled New Zealand for 215 with ten balls remaining to win by 28 runs after topping their previous batting effort by more than 100 runs in scoring 243 for nine in their 50 overs. Pakistan offspinner Saqlain Mushtaq claimed Man-of-the-Match honours with a tidy three for 26 off nine overs. "It's been a concern all the way through, top order batting and an inability to cope with a world class bowling attack," New Zealand captain Stephen Fleming said afterwards. Pakistan captain Moin Khan was still smiling despite his side was shrugged off the 25 per cent match-fee fine because his team bounced back from their six-wicket loss against New Zealand in Napier. Moin said the team, which contained three changes from the side that lost on Tuesday including the loss of Shoaib Akhtar through injury, provided a good combination. �It was a good combined effort today," he said.-AFP/Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010220 ------------------------------------------------------------------- Pakistan plan Aussie style set up ------------------------------------------------------------------- Reporter KARACHI, Feb 19: Pakistan will evolve a master plan to follow Australian cricket set-up to help make a solid base for cricket, director of the cricket board said on Monday. "I have no doubts in my mind that with sincere efforts you can follow better things and improve your set up," Brig Munawwar Rana said from Islamabad 24 hours after his return from Australia. Rana, who was in Melbourne for the ICC meeting and stayed back to study the Australian cricket structure, visited the Australian Cricket Academy and was given a presentation on Australian set up. ------------------------------------------------------------------- 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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