------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 27 January 2001 Issue : 07/04 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
We encourage comments & suggestions. We can be reached at:
e-mail dws-owner@dawn.com
WWW http://dawn.com/
fax +92(21) 568-3188 & 568-3801
mail DAWN Group of Newspapers
Haroon House, Karachi 74200, Pakistan
Please send all Editorials and Letters to the Editor at
letters@dawn.com
(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 2001
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS
CONTENTS =================================================================== NATIONAL NEWS + CE links peace to honour: Kashmir struggle can't be suppressed + CE calls for strong Pakistan Navy + Pakistan criticizes US missile programme + 15 killed, 108 injured in lower Sindh + Samjhota service extended for 3 years + Paris Club links more help to reforms + Indus River System Authority (IRSA) to iron out differences + Submarines may be equipped with Nuclear arms: PN chief + Extradition accord with Uzbekistan signed + Punjab demands Rs4 billion from provinces + Centre moves to resolve Balochistan, Sindh tiff on CJ + Sustained efforts in IT sector needed + Seven PML men get one-year RI + Pakistan declared poppy-free country + Benazir decides to return home in September --------------------------------- BUSINESS & ECONOMY + Islamabad seeks $2 billion from IMF + Asian Development Bank to give $42m for health facilities + Long-term funds at floating rates: Textile Vision 2005 + PTCL posts lower than expected profits + Tax rate on bank profit may be slashed to 43% + Call to boost textile exports + Strategy for attracting foreign investors + Change in management for sick units' revival + Dawood for emphasis on footwear exports: Leather Show opens + Hearing against NAB Ordinance on Feb 12 + US Court rejects Pakistan request over bank accounts + Subsidy on wheat to go by June + KSE directed to enforce reforms --------------------------------------- EDITORIALS & FEATURES + Shame Ardeshir Cowasjee + A glimpse of the future Ayaz Amir + Defying the popular will Irfan Husain ----------- SPORTS + Rs20m grant for Pakistan Hockey Federation + PCB's cash incentives + Malik appears before panel
=================================================================== DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010126 ------------------------------------------------------------------- CE links peace to honour: Kashmir struggle can't be suppressed ------------------------------------------------------------------- KARACHI, Jan 25: The chief executive, Gen Pervez Musharraf, has declared that Pakistan stands for peace in the region but a peace with honour and dignity. This he stated while reviewing the 74th Midshipmen Commissioning Parade of the Pakistan Naval Academy on Thursday. However, Gen Musharraf pointed out, the impediment to peace was the Kashmir dispute and "we cannot close our eyes to the plight of our Kashmiri brothers." The spirit of freedom, he said, could no longer be throttled through brute force. The CE told the parade that "you are a guarantor of peace and the protector of Pakistan's sovereignty and integrity." He said the armed forces were a deterrent against any aggression and added that "more than material force the deterrent lies in your heart and your mind. Let no evil eye ever be cast on our motherland." Focusing on maritime activities, Gen Musharraf said: "The dynamics of the post-Cold War era have forced us to readjust our maritime perceptions; the present government has taken a decision to rapidly expand the maritime sector by enlarging Pakistan's merchant fleet, increasing the number of ports and investing in exploitation of sea-based resources". In this context, he added, the merchant service was receiving additional incentives. Construction of a deep-water port at Gwadar had been planned, offshore exploration stepped up and effort was being made to boost fish export. The CE said it was indeed very encouraging to know that Pakistan's achievements in defence production had proven their credentials to military delegations from various countries of the world in the recently-held international defence exhibition and seminar.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- CE calls for strong Pakistan Navy ------------------------------------------------------------------- KARACHI, Jan 25: The chief executive, Gen Pervez Musharraf, said on Thursday that Pakistan's long coastline and its strategic location called for a strong Pakistan Navy and merchant navy to provide it with security and defence. "Our sea trade routes and exclusive economic zone need to be guarded," the CE said, adding that if a strong navy was a pre- requisite, a well-equipped and viable shipyard to meet the requirement of indigenously built vessels was also a necessity. He was speaking as chief guest at a ceremony held at the Karachi Shipyard and Engineering Works in connection with the handing over of three tugs built by the shipyard for the PN. Gen Musharraf observed that Karachi shipyard had all the capabilities to fulfil this requirement and, therefore, this strategic national industry should be revamped and modernized. "We need a well-equipped and efficient shipyard as a strategic compulsion for our survival as a maritime nation," he declared. He said it was distressing to know about the financial problems the KSEW was facing and the only reason was that there was not enough work for its core activity i.e. shipbuilding. He called upon all concerned quarters to provide the most needed support and encouragement to the KSEW for its maximum utilization in playing its role in providing vessels for shipping and ports services. He pointed out that the government had already provided a remedy in the form of a directive to public sector maritime organizations for placing their shipbuilding and repairing orders on the KSEW. "These directives should be implemented in letter and in spirit so that the main objectives of support to the KSEW are achieved." He noted that the PN was striving hard to achieve self-reliance objectives of the government by indigenizing construction of tugs, missile craft, fast petrol boats and submarine with success. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- Pakistan criticizes US missile programme ------------------------------------------------------------------- GENEVA, Jan 25: Pakistan warned on Thursday that a proposed US missile defence shield could heighten tensions between major powers and lead to a build-up of arsenals. In a speech to the UN Conference on Disarmament, Foreign Secretary Inamul Haq said "most countries" remained unconvinced that deployment of a National Missile Defence would enhance security anywhere. He backed thorough debate on the issue and urged the Geneva forum to launch global negotiations on a treaty which would ban weapons in outer space, the "province of all mankind". Haq also called for reaching a peaceful solution with India to their long-standing dispute over Kashmir and for a halt to the "nuclear and conventional arms build-up in South Asia". His remarks drew no response from the US disarmament delegation. But India's new disarmament ambassador Rakesh Sood took the floor to reaffirm New Delhi's commitment to dialogue on Kashmir, where a ceasefire was renewed this week. The five official nuclear powers (Britain, China, France, Russia and the United States) and nuclear-capable Pakistan and India are among the 66 member states of the world's only multilateral disarmament negotiating forum. Former US President Bill Clinton left a decision on whether to build and deploy the so-called "Son of Star Wars" - a system aimed at intercepting incoming missiles in space which has an estimated price tag of $60 billion - to his successor. President George W. Bush has signalled he will proceed with the missile umbrella. Haq sounded a warning against abrogating or watering down the 1972 Anti-Ballistic Missile (ABM), a major strategic stability treaty between the United States and Russia which prevents deployment of ballistic missile defences. "Most countries, and the international disarmament community, remain unconvinced that abrogation or amendment of the ABM Treaty and deployment of National Missile Defences are the advisable course to enhance international or national security," Haq told the Conference on Disarmament.-Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- 15 killed, 108 injured in lower Sindh ------------------------------------------------------------------- Dawn Report HYDERABAD, Jan 26: Fifteen people died and about 108 others were injured when a strong earthquake jolted the entire Sindh right from Karachi to Kashmor at 8:20am on Friday, write Aziz Malik and M.H. Khan. There was no record available about the victims in the Mirpurkhas division, but reports said that eight people died in the district - one each in Kunri, Jhuddo, Naukot, and Mirpurkhas and two each in Digri and Kot Ghulam Mohammad. Reports of powerful jolts, destruction of houses, roads and trees were received from all over the Hyderabad and Mirpurkhas divisions with families coming out in the open to save their lives. Power supply in certain areas was disrupted. The injured were brought to the civil hospital of Hyderabad from the districts of Badin, Mirpurkhas, Digri, Kunri and Kot Ghulam Mohammad. Five children, including a 15-day-old boy, were killed and scores of others, mostly schoolchildren, injured in the Hyderabad district. The tremor lasted for 30 seconds only, but people with their children ran out of their houses to take refuge in the open. The intensity of the earthquake was measured 6.5 on Richter scale. Some of the people were still asleep when the tremors were felt and many a student, mostly girls, was injured in the stampede as they rushed out of their classrooms. MIRPURKHAS: Five people were killed and 32 others injured when roofs and walls of various houses collapsed at different places owing to the earthquake, reports Qamruddin. BADIN: People rushed out of their houses when the quake hit at 8.18am. Three people died and 60 others were injured in the district, writes Mohammad Hashim Bhurgari. KHIRPUIR: Tremors were felt in the district but no casualty was reported from any locality, writes Mansoor Meerani. THATTA: Eighty-year-old Ladho Warayo died of cardiac arrest as the district was jolted, writes Iqbal Khwaja. MITHI: Walls and roofs of hundreds of houses in the Tharparkar district either developed cracks or collapsed, reports Prem Shivani. SUKKUR: A brief spell of earthquake in Sukkur, Larkana, Rohri, Jacobabad, Shikarpur, and Ghotki was felt. However, no loss of life was reported, reports Shamim Shamshi. KARACHI: In Karachi, the earthquake was felt at 8.16am. According to the MET office, the city could experience aftershocks lasting several days as there always was a possibility of such a phenomenon. But, it added, it was not necessary. LAHORE: A severe earthquake rocked Lahore and other parts of Punjab, terrifying people and making them run for safety, reports our Lahore Bureau. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010122 ------------------------------------------------------------------- Samjhota service extended for 3 years ------------------------------------------------------------------- Monitoring desk NEW DELHI, Jan 21: India and Pakistan on Sunday agreed to extend the Samjhota Express train service between the two countries by another three years and upgrade the services by providing sleeper and economy class accommodation. An agreement to this effect was signed between the delegations from both sides after a five-day deliberations to review the rail communications between the two countries. However, there was no mention about the Pakistani demand for extension of the train to Amritsar. The agreement, which will come to force with immediate effect, was signed by leader of Indian delegation, S S Bhandari, Additional Member (Traffic), Railway Board, and the Pakistani team leader, Abdul Qayyum, Additional General Manager (Freight), Pakistan Railways. The express will continue to run as a bi-weekly service. The Pakistani proposal for up to two extra coaches to clear heavy rush of passengers has been accepted. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- Paris Club links more help to reforms ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Jan 24: Paris Club has offered more assistance to Pakistan if it completes reforms in the economic and social sectors, Finance Minister Shaukat Aziz told Dawn by telephone on Wednesday from Paris. "We assured them that the government is committed to restore true democracy in Pakistan and this went quite well with the creditors of the Paris Club", the minister asserted. "You must complete the reform agenda and if you do so we will offer more support to Pakistan", the finance minister quoted the Club president as saying. Mr Aziz said he had also briefed the Club about establishing of democracy at grass-roots level in Pakistan. I told them that the first phase of local governments elections had been over and the second phase would soon be started that would consequently set the tone to hold general elections, he added. He said that the Paris Club had appreciated the government's efforts to promote good governance and transparency in its agreements with the foreign companies. Mr Aziz said that he also told the participants of the meeting that Pakistan sought peaceful solution to all kinds of disputes in the world, including Kashmir. The Paris Club restructured Pakistan's $1.8 billion debt to help overcome its balance of payment problems during the next ten months. "In fact Paris Club has expressed its confidence in the economy of Pakistan by rescheduling our over $1.8 billion debt", said the minister. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Indus River System Authority (IRSA) to iron out differences ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, Jan 26: The inter-provincial dispute over the distribution of irrigation water will be taken up again by the Indus River System Authority on Saturday, a government official said. The authority, the source said, will consider the long-standing dispute and try to iron out differences between the provinces on various clauses of 1991 Water Accord. "Provinces are interpreting various clauses of the accord differently," a source said. "The authority is now examining those divergent interpretations." Sindh is demanding distribution of irrigation water among the provinces according to clause 14(b) of the accord, which says: "The record of actual average system uses for the period 1977-82, would form the guideline for developing a future regulation pattern. These 10 dailies uses would be adjusted prorate to correspond to the indicated seasonal allocations of the different canal systems and would form the basis of sharing shortages and surpluses on all Pakistan basis." Punjab argues that clause 14 (b) cannot be implemented without increasing the additional storage capacity as the accord had envisaged the storage capacity would be increased to 114 MAF. The Punjab government officials maintain that unless the storage capacity is increased, the authority should continue distribution of water as per the historical uses under Clause 14 (a). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Submarines may be equipped with Nuclear arms: PN chief ------------------------------------------------------------------- Correspondent LARKANA, Jan 26: The Chief of Naval Staff Admiral Abdul Aziz Mirza said if needed we will install nuclear arms on our submarines, but everything has to be decided by the government. He was talking to newsmen on Friday at the 9th Parents Day of Cadet College Larkana. He said we are more advanced than India in submarine technology, for India has just started fitting missiles on its submarines, something we had done 15 years ago. He said in very clear terms said we do not need to match with India in terms of gun-to-gun and man-to-man as India is a big country. He said it should be our policy to posses selective deterrence in specific areas and add that the government was giving importance to the navy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- Extradition accord with Uzbekistan signed ------------------------------------------------------------------- Hasan Akhtar ISLAMABAD, Jan 25: Foreign Minister Abdul Sattar signed an extradition treaty on Thursday with his Uzbek counterpart, Abdulaziz Kamilov, who hoped that the treaty would establish cooperative relations between the two countries. The two sides also signed agreements on consular services and customs regulations before addressing a joint press conference. The Uzbek foreign minister expressed a desire to establish relations with Afghanistan on certain conditions, such as adherence to a policy of non-interference, guarantee of secured borders, elimination of terrorist camps in Afghanistan against Uzbekistan, etc. Mr Sattar said that at the initiative of the UN secretary- general's special envoy, Frances Vendrell, the Uzbek government had offered to host a reconciliation meeting of all Afghan parties to end civil war. Both foreign ministers clarified that though a United Nations Security Council resolution banned interaction with the Taliban, the proposed initiative on Afghanistan had come from the UN secretary-general's representative. They added that Uzbekistan had merely offered to host the meeting. Answering a question, Mr Kamilov said that though Uzbekistan did not recognize the Taliban and their ideology, it recognized the ground reality that they held sway over 90 per cent of Afghanistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- Punjab demands Rs4 billion from provinces ------------------------------------------------------------------- Correspondent ISLAMABAD, Jan 24: Punjab has demanded Rs4 billion from Sindh, Balochistan, NWFP, AJK, Northern Areas, and Defence Division on account of wheat supply of wheat in the year 1999-2000. In an unusual move, Punjab has also transferred 12 per cent mark-up on this outstanding money to these provinces and has warned that if the payment was not made, it would request the finance ministry to deduct the money at source from their food accounts. Punjab has also sought Rs1.9 billion from the centre on account of sale of wheat at subsidized rates to Balochistan and NWFP between March 1997 and August 1998. It has also sought Rs10 million from the federal government for the wheat provided by it to Afghanistan in 1999-2000. Official sources told Dawn that the Punjab government raised the issue of non-payment of this money in the inter-provincial meeting of food secretaries, held here on Tuesday. The meeting was called to resolve the issue of wheat supply to the flour mills. Sources said that the Punjab food secretary told the meeting that state trading in wheat by Punjab food department was being badly affected due to non-payment of dues by the provincial governments. It said Punjab was promised that cost of wheat would be paid by the provinces either in advance or at the earliest possible time, but this promise was not fulfilled. He said non-payment of dues has also affected the retirement of loans so the province had to borrow money at extra mark-up to buy commodity from farmers during harvesting seasons. It was because of this that it was forced to transfer the extra mark-up to the provinces. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- Centre moves to resolve Balochistan, Sindh tiff on CJ ------------------------------------------------------------------- Correspondent ISLAMABAD, Jan 24: The federal government has sought law division's opinion on the coastal jurisdiction of Sindh and Balochistan to resolve the ongoing conflict between the two provinces over the issue of fishing rights. The fishermen of Sindh have threatened that if they were barred from fishing in Balochistan waters, they would not allow the fish catch of Balochistan to be sold in their province. Official sources told Dawn here on Wednesday that the decision to seek legal opinion has been taken in the light of a report submitted to the National Fisheries Development Board, which met here on Tuesday to review the issue. Balochistan has been complaining about the illegal fishing by fishermen from Sindh in its coastal waters and accusing them of using fishing gears such as shrimp trawlers, which are considered destructive. Initially, shrimp trawling activity was restricted to only shallow waters along the coast of Sindh. However, unchecked growth in the shrimping fleet has led to serious depletion in Sindh waters after which the fishermen started entering Balochistan waters for the catch. Around 2,400 boats are reportedly involved in this activity though for the sustainable exploitation of the shrimp stocks, a total of only 500 to 600 fishing boats are required. Shrimp trawling was rarely done in Balochistan coastal waters prior to 1970. However, in '70s a few boats started this activity in Pasni and Sonmiani areas. Since early '80s, shrimp trawlers from Sindh have been heavily fishing in Balochistan waters. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010124 ------------------------------------------------------------------- Sustained efforts in IT sector needed ------------------------------------------------------------------- Nizamuddin Siddiqui and Khalid Rehman KARACHI, Jan 23: Speakers struck optimistic notes at the inaugural session of the country's largest infotech event, "IT - the Future of Pakistan", the doors to which were opened by the federal minister for science and technology on Tuesday morning. They were, however, of the view that though Pakistan had made a promising start in the field of information technology it must sustain its efforts for several years to come before it could achieve its goals. The speakers at the two-day event, organized by the Dawn Group of Newspapers at the Expo Centre, included the federal minister for science and technology, Prof (Dr) Attaur Rehman, and the vice- president of the Intel Corporation, Christian Morales. Mr Morales praised the government's policies as well as Pakistanis' capabilities but cautioned that the policies made today could haunt for decades to come. Prof Rehman said that the country must produce thousands upon thousands of qualified infotech professionals and upgrade the educational institutions before it could forge speedily forward in the information technology field. He announced several initiatives that his ministry was going to launch in the next couple of months. The minister said that whatever had been achieved so far was largely due to the efforts of the private entrepreneurs. Pointing towards the problems the bureaucrats and government functionaries posed, he said: "I have been trying to get round the government rather than through it." The minister was of the view that the governments were like black holes which often were their own worst enemies. "I was humbled by the support the Pakistani entrepreneurs from the United States to Australia extended to me." He announced that on March 23 internet kiosks would be opened at the country's airports. "These kiosks are being set up with the collaboration of Intel Corporation. And 1,800 internet kiosks will be set up at petrol stations throughout the country with the help of Pakistan State DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010123 ------------------------------------------------------------------- Seven PML men get one-year RI ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, Jan 22: A judicial magistrate on Monday awarded one year's imprisonment to seven workers of Pakistan Muslim League on the charge of storming the Supreme Court building on Nov 28, 1997, when a bench headed by the then Chief Justice Sajjad Ali Shah was proceeding with a contempt of court case against the legislators including the then prime minister Nawaz Sharif. In view of old age, the eighth accused, Malik Munawar Awan, was awarded imprisonment of only three months along with a fine of Rs2000. The Supreme Court had also examined the case in its original jurisdiction and had convicted six PML legislators and sent them to jail for one month. The Supreme Court, however, had separated the case of those convicted on Monday on the statement of the police that a challan against them had been submitted in the local court. Those convicted on Monday by Mustafa Sifwat, Civil Judge, (Magistrate Section 30), are; Babar Awan, PML youth wing leader; Anjum Iqbal, Ali Abbas Khan, Muhammad Farooq, Muhammad Nasim, Tanvir Akhtar, Raja Zafar Iqbal and Malik Munawar Awan. They are convicted under Section 452 (trespass after preparation for, assault or wrongful restraint); 353 (assault or criminal force to deter public servant from discharge of his duty), 506 (punishment for criminal intimidation), 186 (obstruction public functions); and 147 PPC (punishment for rioting). Explaining the circumstances under which he was inclined to award a lesser penalty to Malik Munawar, the judicial magistrate stated that he never defaulted in appearance on any of the hearing dates. The magistrate stated that it was a matter of concern that the accused along with others, criminally trespassed the building of the SC, raised slogans against the judiciary, with the intentions of brining the authority of the court into disrespect and to obstruct the order and decorum of the apex court of the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010123 ------------------------------------------------------------------- Pakistan declared poppy-free country ------------------------------------------------------------------- ISLAMABAD, Jan 22: A United Nations agency on Monday declared Pakistan a "virtually poppy-free" country. But, a UN drug-control official said, Pakistan still served as a transit route for opium and heroin coming from its war-shattered neighbour Afghanistan, the world's largest opium producer. The World Drug Report for 2000, issued by the Vienna-based United Nations Office for Drug Control and Crime Prevention (ODCCP), said Afghanistan and Myanmar accounted for about 90 per cent of global opium production in recent years and almost 95 per cent in 1999. Afghanistan alone was responsible for more than three- quarters of global opium production in 1999, according to extracts of the report issued here. Bernard Frahi, the United Nations Drug Control Programme (UNDCP) representative in Islamabad, said Pakistan had shown impressive results in eradicating poppy and had brought down its opium production from 800 tons in 1978 to less than five tons last year. "Following a 15-year programme of alternative development, supported by the international community and bilateral donors, Pakistan, one of the main producers in the early 1980s, succeeded in becoming virtually poppy-free in 2000," the report said. Poppy was still grown in some remote areas near the Afghan border but the amount was insignificant, Frahi said. Bernard Frahi said Pakistan was a transit country for opium and heroin leaving Afghanistan. About 22,500 acres of opium-poppy had been cultivated in Afghanistan in 1999, an increase of more than 40 per cent on the previous year, the report said. Cultivation had declined by some 10 per cent last year partly because of eradication and alternative development efforts, but mostly because of unfavourable weather, the report said. "Clearly Afghanistan remains the challenge for the global community in terms of curtailing opium production and hence the availability of heroin," the report said.-Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010122 ------------------------------------------------------------------- Benazir decides to return home in September ------------------------------------------------------------------- By M. Ziauddin ISLAMABAD, Jan 21: Former prime minister Benazir Bhutto has decided to return home sometime in September or October this year, sources close to her inner circle of advisers told Dawn. The advice to return in September or October has been given by the PPP's Central Executive Committee. Sources said that the party elders in the CEC vetoed an earlier decision of asking her to return home on April 4, the day her father was hanged 22 years ago. These party hawks were of the opinion that her return in April would be seen by the government as an attempt to interfere with its local government plans and it may react negatively resulting in an unnecessary and unwanted street confrontation between the PPP workers and the law enforcement agencies. The party CEC has left the choice of the date of arrival and the venue to the chairperson to decide, both of which she is expected to fix after the conclusion of the current phase of nationwide mobilization efforts launched recently by the PPP. The hierarchal network of the party, from ward level to the CEC, has been reactivated as part of the mobilization efforts and the party posts that have fallen vacant for any reason in the last couple of years are being filled on an urgent basis. Sources said that the mobilization exercise had been taken in hand to test the political waters and at the same time measure the degree of workers' commitment to the cause of the party, especially the extent to which they would go in case Benazir was arrested by the government on her return. The PPP sources vehemently deny this charge but they find it hard to understand why the MQM at this late stage has demanded that the ARD agree to its proposal for a new constitution based on the 1940 Pakistan Resolution and also that the PPP and the PML tender an apology for what the two parties allegedly did to the MQM during their respective tenures.
BUSINESS & ECONOMY DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- Islamabad seeks $2 billion from IMF ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, Jan 25: Pakistan is seeking $2 to 2.5 billion poverty reduction growth facility (PRGF) from the International Monetary Fund (IMF) to replace the current $596 million standby arrangement (SBA), which is expiring in September this year. "The government is negotiating a three-year PRGF programme relatively on less mark up rate and we hope to qualify for that new programme", said finance ministry spokesman Dr Waqar Masood Khan. Briefing reporters here on Thursday he expressed the hope that the government's difficulties would not increase when the ten months period of loan restructuring by Paris Club ended in September. "We may not require funds for our balance of payment problems if we succeed to have PRGF", Dr Khan said, adding that so far the Club has restructured loans worth little over $5 billion. He did not offer any comment when asked what would happen in September when another rescheduling will be required by Pakistan from the Club, keeping in view the still fragile balance of payment position. When pressed he said there was nothing on cards except to seek PRGF to meet with the future situation. The additional secretary told a reporter that the State Bank had purchased $1.7 billion from the market in 1999 to avoid default on repayments of loans to foreign creditors. Responding to a question he said Pakistan was not seeking from the IMF downward revision of various economic indicators set for the current financial year. He agreed that the budget deficit was still higher than the target of 4.3 per cent agreed with the IMF. "But we have no plan to seek any revision of various targets which are otherwise expected to be achieved by the end of 2000-2001", he added. Answering a question he said he could not give the exact budget deficit figure as final numbers have not been received for the first six months of 2000-2001. Dr Khan also said that the finance division and the National Reconstruction Bureau (NRB) were jointly preparing a "Fiscal Devolution Plan" for the provinces to be later stretched at the district level. He said that a World Bank mission, headed by John Penzer was currently visiting Pakistan to offer $300 million for structural adjustment credit which, he added, was likely to be converted into International Development Agency loan to be disbursed on concessionary terms. He said that another WB delegation was arriving here on 29th to extend roughly $250 million for banking sector reforms. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Asian Development Bank to give $42m for health facilities ------------------------------------------------------------------- Bureau Report ISLAMABAD, Jan 26: The Asian Development Bank will provide 42 million dollars to improve reproductive health facilities in 54 under-developed districts and agencies with lowest socio-economic indicator. A meeting of the steering committee of the ministry of population, which was presided over by population secretary Tariq Janjua, discussed the implementation of the project on Friday. The ministry of population welfare, ministry of health and other departments concerned will jointly implement the project. The project is aimed at improving equity by overcoming rural- urban and inter-districts imbalances and social services and uplifting health status of 40 million people. This will lead to significant decrease in maternal and infant morality and will also contribute towards fertility decline in the country. The project will also promote conducive environment for reproductive health services and will enhance the role of NGOs and the private sector to supplement government efforts for attaining better quality of life. Dr Vincent de Wit of the ADB, who is heading a technical assistance team, senior officials of the federal and provincial governments and representatives of civil society attended the meeting. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- Long-term funds at floating rates: Textile Vision 2005 ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Jan 25: Banks and development financial institutions (DFIs) have decided to lend long-term funds to textile mills under textile vision 2005 at a floating interest rate indexed with the State Bank repo rate. But the millers say they must be heard before this proposal is made part of the policy, being framed to prepare Pakistan to compete in a quota-free market by 2005. Bankers said a group of leading banks and DFIs had decided to charge 1.5-2.0 per cent above SBP repo rate from those seeking long term funds under the policy. They said actual interest rate would be determined in line with the borrowers ability to earn and repay adding that good borrowers might get cheaper financing. "This will not do any good unless banks and DFIs consult the millers," said Mushtaq Vohra, vice chairman of All Pakistan Textile Mills Association, when reached by Dawn over the telephone. He said banks and DFIs must consult the APTMA before taking any decision on lending rates structure of the textile policy. But he admitted that linking of interest rates with SBP repo rate was one way of keeping them at right levels amidst changes in monetary policy. The SBP repo rate is the rate at which it lends overnight funds to banks and DFIs as a lender of the last resort. The central bank's repo rate is a key monetary tool. It is raised or reduced to keep monetary expansion at the desired level. At present SBP repo rate is 13 per cent and SBP has not indicated any change in it in near future. This means that banks and DFIs may lend long term funds at the rates ranging between 14.5-15 per cent, if they keep the mark-up at 1.5-2.0 per cent above SBP repo rate. Chances are that in few good cases, they may lend even at the repo rate itself i.e. 13 per cent but in many other cases they may charge the mark-up at more than two per cent over the SBP repo rate. Head of a leading DFI told Dawn his institution was charging 16 per cent on long term loans, adding that most of the borrowers had a reasonable track record. Bankers said they have decided to offer long term funds to the textile sector under textile vision 2005 at a floating rate just to hedge themselves against rapid changes in the monetary policy. Last year, the SBP first adopted a softer monetary policy to kick- start the economy but later on tightened it to keep the exchange rates stable. That upset banks' projections about interest rate movements and cut their profit margins. It is against this backdrop that more and more banks and DFIs are indexing their lending rates with SBP repo rate or with treasury bills rates. This is more so in long term lendings i.e. lending for three years or more. Bankers say they would follow the same approach in financing funds under textile vision 2005. At a recent meeting in Karachi top bankers informed Ministry of Finance advisor Khalid Siraj of their decision to lend long- term funds under the said policy at a floating interest rate. The five- year policy envisages a total investment of Rs333 billion in the textile sector. Banks are going to provide Rs200 billion as debt and the private sector is to arrange the rest as equity. Participants of the meeting held at state-run Habib Bank said senior executives of four lead banks and two DFIs briefed Siraj on how they had planned to go about project financing and BMR financing under the textile policy 2005. The banks and DFI were (i) Habib Bank (ii) National Bank (iii) United Bank (iv) Muslim Commercial Bank (v) Pakistan Industrial Credit & Investment Corporation and (vi) Small Business Finance Corporation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- PTCL posts lower than expected profits ------------------------------------------------------------------- Dilawar Hussain KARACHI, Jan 25: Pakistan Telecommunication Company Limited (PTCL) posted an after tax profit of Rs7,156 million for the half year ended December 31, 2000. The net profit, unveiled by the Board on Thursday afternoon, stood considerably lower-than-expected analysts' consensus figure of between Rs8.5 to Rs8.8 billion. Analysts had generally forecast the bottomline to fall in line with the previous year's Rs8,630m. Improvement in the financial performance for the half-year was forecast as the telecom was seen to gain from continued tariff rebalancing and particularly the tariff adjustment of August 2000. The board did not announce an interim dividend and none was expected. But during the day's trading at KSE, the share in PTCL shed Re1 to close at Rs20.75 with around 68m shares changing hands. Pretax profit of the company for the half year slipped 14.5% to Rs11,010,, from Rs12,881m in the corresponding period of the previous year. Provision for taxation amounted to Rs3,854,, down from Rs4,251m, but the effective tax rate worked out at 35 per cent, against 33 per cent in the previous period. "Other income" contributed Rs1,444m, which was about three times the sum provided by the supplementary sources of income, amounting to Rs567m in the same time last year. The telecom showed revenue at Rs29,483m, which represented marginal growth over Rs29,386m in the first half of last year. It was possibly the financial charges, increasing by a billion rupees to Rs3,477m, from Rs2,447m, which upset analysts' forecasts. Expecting cash flows to improve, some analysts were hoping for a flat or a lower financial charges for the first half this year. Though, operating costs, also rose by a substantial 12.4 per cent to Rs16,440m, from Rs14,625m, the increase had been factored into the projected figures by analysts as the telecom was seen to adopt the International Accounting Standard (IAS) 19, from June 2000, relating to the contributions made for post retirement employee benefits. PTCL is poised to launch the Telecom Mobile Company Limited (PTMCL) before the end of the current month. The $70m cellular network project is 100 per cent owned by PTCL. With the benefit of the strong parent, PTMCL, some analysts say, would open up a new stream of revenue for the telecom in a few years time. Others, however, wonder whether in the presence of three competitors already in the field of cell phones, there is room enough for a fourth? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- Tax rate on bank profit may be slashed to 43% ------------------------------------------------------------------- Ikram Hoti ISLAMABAD, Jan 25: The federal government is considering reduction in tax rates on bank profits from 58 per cent to 43 per cent. This step is being taken in view of the present tax rate rendering the banking business unfeasible, say official sources. They added that though the total incidence of the present tax rate was not 70 per cent, as suggested by a statement of federal minister for privatization, Altaf Saleem this weekend, the rate of 58 per cent too, was one of the highest in the world. Many international finance organizations have been objecting to this tax rate, while the local bankers have been complaining that their equity was heavily burdened because of the present taxation. The present rate of 14-15 percent on the bank loans to entrepreneurs in Pakistan is also being rated as "very high", adversely impacting financing in key sectors by the otherwise intending investors, both local and overseas. The government has been conducting deliberations by involving international financial and investing organizations, aimed at striking a viable ratio of profits for the banks by maximum lowering of the loan-mark up percentage. It has come to light during these studies that tax was a major component of profit-reduction factors for the banks in total portfolio maintenance for the last decade in Pakistan. The government has been considering privatization of major state sector banks in the current financial year, but has found through a number of overtures to the international parties that they deemed the tax rate in Pakistan unusually high, rendering the banking business in the country unattractive. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Call to boost textile exports ------------------------------------------------------------------- Reporter KARACHI, Jan 26: Chairman of the Export Promotion Bureau (EPB) Tariq Ikram has said textile is the mainstay of Pakistan's export and only a significant rise in textile exports can help achieve the $10 billion target. At the inauguration ceremony of "Paksea on-line" service of Pakistan Knitwear and Sweater Exporters Association (PAKSEA) here on Thursday evening, he called for efforts to make up for the textile exports shortfall in next six months. While appreciating the on-line service of the association, the EPB chairman urged its members to do their utmost to over the current short in exports. He did not accept the general perception that SRO-417, dealing with sales tax refund system, was the main factor in fall of exports. "As a matter of fact other factors have hurt our exports," he added. He said that even the slow-down in US economy had no impact on Pakistan's export as there is a 15 per cent growth in exports of the United States during past six months. Giving some details of past six months exports, he said textiles and garments registered five per cent growth only, while other goods like surgical, sport goods etc rose by 15 per cent with non- traditional goods exports made a remarkable increase of 20 per cent and miscellaneous goods exports grew by 30 per cent, over the same period of last year. The EPB chief further said that exports to most of the countries was well above last year's figures, including to Dubai and Hong Kong. But, he said, exports to Germany declined and had become a challenge to our exports. Similarly, he said, except 11 products, exports to the UK of all other goods declined in past six months. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Strategy for attracting foreign investors ------------------------------------------------------------------- Reporter KARACHI, Jan 26: Two top government functionaries have stressed on focussing the revival of confidence of domestic investors and the multinationals operating in Pakistan, before attempting to reach the investors in foreign lands. Chairman, Board of Investment, Waseem Haqqie and Sindh Finance Minister Abdul Hafeez Sheikh made detailed presentations on "Investment Prospects in Pakistan" in a seminar organized by the Management Association of Pakistan and outlined the strategy for attracting investment to maintain economic growth. The two speakers were unanimous in expressing the view that foreign investors would come to Pakistan only after they find the domestic investors and the foreign companies in Pakistan are comfortable in doing business here. "No amount of incentives and concessions will work if a foreign investor sees domestic investor or a foreign company is in distress," the finance minister said in plain words. Haqqie informed the participants, mostly business professionals and corporate executives, that the BoI was being restructured as a corporate entity, in which the private sector would be given a dominating role and the governors or the chief executives of the four provinces would be associated in the policy framing and decision-making. He said the draft of an ordinance was already given to the government, which would be promulgated soon. This ordinance would replace the existing official notification, issued to create the BoI. He said the settlement of dispute with the Hubco, the IMF bailout package in the form of standby facility and the recent debt rescheduling relief given by the Paris Club have sent positive and confidence reviving signals to the investors. The flow of foreign investment, he conceded, had gone down considerably in last six months. However, he pointed out that rising trend in last two months had created hope as commitments for about $1.6 billion were made. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- Change in management for sick units' revival ------------------------------------------------------------------- Sabihuddin Ghausi KARACHI, Jan 24: The sponsors and owners of 105 sick industrial units have failed in convincing the private sector-dominated committee on revival of sick units to get their loans restructured and rescheduled, along with a refusal to any relief. "Probably, half may get relief in rescheduling, but only after a change in the management", Tariq Hameed, Chairman of the Committee for Revival of Sick Industrial Units told Dawn on Wednesday, at Habib Bank, while presiding the committee's 17th meeting. He said, the sponsors of sick units - most of which are closed - have been refused any rescheduling relief on reports from banks and financial institutions, as they were found to be 'chronic defaulters', who failed to respond to any relief given to them in the past. All these units are reported to have an outstanding loan liability of Rs23 billion, of which Rs16.2 billion has been classified as default showing that servicing of these loan instalments have not been done for more than a year. "Quite a good number of these cases are a total loss", a banker explained who pointed out that the sponsors of such units have failed to service their loans for last three or more years. The only chance of recovery from such sponsor is by selling the junk available in the factory premises in the name of machinery and the real estate value of plot. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Dawood for emphasis on footwear exports: Leather Show opens ------------------------------------------------------------------- Parvaiz Ishfaq Rana KARACHI, Jan 26: Minister for Commerce Abdul Razzaq Dawood on Friday said the government has contributed Rs470 million towards quality improvement of leather products and in environment protection from the pollution of leather industry. Speaking as chief guest at the 21st Pakistan Leather Show 2001, jointly organized by Export Promotion Bureau (EPB) and Pakistan Tanners Association (PTA), the minister asked the industry to give more attention to footwear and leather goods, which are lagging far behind in exports. Praising the contribution of leather industry towards national economy and exports, Abdul Razzak Dawood said it contributed five per cent to GDP and seven per cent in total exports. However, he expressed his concern over industry's poor performance in footwear and leather goods and said that 50 per cent of the world market goes to footwear, whereas our country's share stand at five per cent only. He said that there was a tremendous opportunity in footwear and leather goods and what was needed is a little more attention of the industry on these products. The minister appreciated the industry performance during first half of current fiscal and said in July-Dec 2000 period there had been exports of $344 million as against $261 million of the same period last year. He also urged the exporters to explore other markets as presently bulk of leather goods were being exported to European Union and North America. Responding to a point raised by PTA chairman Farrukh Sheikh, in his welcome address, the minister said a joint effort of the ministry of commerce, ministry of food, agriculture and livestock (Minfal) and the PTA was needed to overcome diseases confronting animals, which resulted in poor quality of hide and skins. He said a similar issue was being confronted by textile industry, where contaminated cotton was resulting in annual loss to a tune of $350 million to the country as our cotton fetches less price in the world market. The minister stressed upon the industry to give its due attention towards social responsibility and said that very soon foreign buyers would be putting conditions over such issues. He said it was only because the WTO's Seattle meeting remained inconclusive, the countries like ours got some time. He assured full support of the ministry, EPB and CBR in promoting the industry and its exports and said that so far the leather industry had made big contribution towards the economy of the country and its exports. Later, Abdul Razzak Dawood inaugurated the three-day leather show 2001, at EPB Expo Centre, which will remain open for general public for next two days. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- Hearing against NAB Ordinance on Feb 12 ------------------------------------------------------------------- Bureau Report ISLAMABAD, Jan 24: A meeting was held in the National Accountability Bureau on Wednesday to make preparation for successfully defending the NAB ordinance in apex court next month. A three-member bench of the Supreme Court, headed by Chief Justice Irshad Hasan Khan, will start hearing of 15 constitutional petitions challenging the NAB ordinance, from Feb 12. The meeting, besides legal experts, was attended by the sitting chairman NAB Lt General Khalid Maqbool and its former chairman General Amjad. One of the participant told Dawn that the meeting was held to prepare the case and all 23 points which were noted by the Supreme Court in its admission notice, were discussed threadbare. The preparation is not yet complete and another meeting will be held in Islamabad on Feb 1. It was decided that Abid Hasan Minto will represent the NAB, Maqbool Ellahi Malik, Advocate General Punjab, will represent Federation. Attorney General Aziz A. Munshi is under notice from the Supreme Court. The meeting was attended by Attorney General Aziz A. Munshi, Abid Hasan Minto, Maqool Ellahi Malik, former prosecutor general Farooq Adam, and Deputy Attorney General Tanvir Bashir Ansari. The meeting which started at 11.30am continued up to 4pm. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- US Court rejects Pakistan request over bank accounts ------------------------------------------------------------------- Correspondent ISLAMABAD, Jan 24: A US district court in Colombia has rejected Pakistan's request for reviewing its earlier verdict of freezing the bank accounts of Pakistan's agriculture ministry in the Washington branch of National Bank of Pakistan. The US District Court judge has also allowed the plaintiff - Ned Chartering - to locate the defendant's (agriculture ministry) assets in the United States to enforce its December 4 judgment in which Pakistan was asked to pay US$268,000 to the plaintiff on account of wheat shipment charges from Turkey in the early 1990s. The agriculture ministry had sought dismissal of plaintiff's case on the grounds of immunity of its accounts under US's Foreign Sovereign Immunity Act (FSIA). But the court did not entertain Pakistan government's request. It not only denied Islamabad's appeal but ordered that the writs of attachment shall remain in effect pending asset acquisition by the plaintiff company. Ned Chartering, however, told the court that the ministry had reportedly transferred $3.0 million from NBP Washington branch, after the US court's order, to avoid penalty. Consequently, only $4,000 were left in agriculture ministry's account in NBP, Washington, which were accordingly frozen on court orders. Following the freezing of its accounts, the agriculture ministry filed a review petition in the court seeking reversal of its earlier order and detachment of assets in the United States. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010124 ------------------------------------------------------------------- Subsidy on wheat to go by June ------------------------------------------------------------------- Correspondent ISLAMABAD, Jan 23: The federal government has decided to abolish subsidy on wheat and provide the commodity at uniform rates throughout the country from next financial year. This was disclosed at a meeting of a sub-committee of the Economic Coordination Committee of the Cabinet and the office-bearers of the All Pakistan Flour Mills Association here on Tuesday. The association's representatives were told that a summary for this purpose would soon be submitted to the ECC for taking a final decision. The meeting, presided over by planning secretary Mutawakil Qazi, was attended by the APFMA vice-chairman Tariq Sadiq and the four provincial food secretaries. Mr Sadiq told Dawn after the meeting that the sub-committee members agreed with the association's demand to end the subsidy on the wheat and let the market forces work independently. Sources said that the committee also agreed that there should be no ban on inter-provincial movement of wheat to give an opportunity to the flour mills so that they could get the commodity easily. It was also pointed out that at the time of wheat procurement, the government must not control the procurement drive and should provide a level playing field to all the stackholders. The committee also questioned about the increase in flour prices in Karachi and Hyderabad. The APFMA office-bearers maintained that the increase in prices was made because the private sector was supplying the best quality flour to the consumers in the two cities. Sources added, the meeting also agreed that the government must introduce a uniform price policy throughout the country to enable the consumers to get wheat at the same rate as the difference in flour prices was creating provincial disharmony. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010124 ------------------------------------------------------------------- KSE directed to enforce reforms ------------------------------------------------------------------- Correspondent ISLAMABAD, Jan 23: The Securities and Exchange Commission of Pakistan (SECP) has directed the Karachi Stock Exchange to take immediate measures for implementing the reforms for running the affairs of the exchange in a manner that the investors' rights are not harmed any further. In a statement on Tuesday, the SECP said recently all the stock exchanges were directed to make certain changes in the governance structure to ensure accordance with internationally accepted norms of management and in the best interest of capital market. Delay in these reforms would put the country's stock markets in risk of not only losing competitiveness viz a viz other markets in the region, but would also cause the genuine local investors to shy away from investing in Pakistani markets. The Karachi Stock Market (KSE) endorsed the amendments made by the SECP, but did not approve, through majority vote, at the general body level, in view of which the position is reiterated that the amendments had become effective by application of section 34(5) of the SECP Ordinance-1969. Highlighting the reforms and their induction in the Pakistani stock exchanges, the SECP pointed out that previously, the KSE's 16 out of 18 directors of the board were directly or indirectly appointed by the members. Such a board could only serve the interest of members, and not the investors. The degree to which the board could take decisions in the public interest is a key governance issue relevant to the running of KSE.Back to the top
EDITORIALS & FEATURES DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010121 ------------------------------------------------------------------- Shame ------------------------------------------------------------------- Ardeshir Cowasjee A FEW years ago I asked a question: How do we shame the shameless? The feedback overwhelmingly indicated that I was considered to be naive, and I was the butt of much laughter. Yesterday I received by courrier three bound files of papers with a covering letter purportedly from 'WAPDA Officers (For good management)'. The writers conveyed to me their salaams and told me that they had never imagined that I could be so naive as to imagine that General Pervez Musharraf and his men know nothing about the present high level corruption, which I maintained was drastically reduced. They also put it down to the ageing process, or to the desire to believe in someone, that I was under the impression that corruption at the lower levels had been somewhat reduced. They were sending me three volumes of documents 'painstakingly put together' which they suggested I study as the contents may change my opinion. This also would be material for one of my columns. The closing exhortation : "May you live long to see Jinnah's Pakistan once again." Now, as would have said my late lamented old counsel, Dingomal Ramchandani, who, when the true history of Pakistan is written, may warrant more than just a footnote : Lo and behold! The honest officers of WAPDA have not signed their letter, or identified themselves. Shame? Why and how is it that we have leaders who have no concept of apology or atonement for their conduct ? Take Jungle ke Badshah Bill Clinton, who, two days before he relinquished the most powerful office in the world, made the following statement: "I tried to walk a fine line in between acting lawfully and testifying falsely, but I now recognize that I did not fully accomplish this goal and that certain of my responses to questions about Ms Lewinsky were false. I have apologized for my conduct and I have done my best to atone for it with my family, my administration, and the American people." Our tin-pot Napoleons who have lied through their rotten teeth, robbed like rabbits on a spree, fleeced the nation and left it on its knees, are incapable of bringing themselves to make similar statements, to hide their heads in shame, and quietly disappear for ever from the national scene, rather than getting themselves arrested, jailed, pardoned, exiled, or having been convicted of corruption, allowed to tramp the free world making speeches unfavourable to their country to whatever forum beckons them? This might allow the country to make some progress.One of the multifarious tragedies of Pakistan is that it is a nation bereft of men or institutions to whom and to which the people can look up with any modicum of trust or respect. Let us start with former president of the republic, the obstinate, uncompromising, grim Ghulam Ishaq Khan, who, one could take a risk and say, was not personally financially corrupt. But one cannot say with full certainty that he was not as, whilst in office, he allowed an open field to his two sons-in-law, Anwar Saifullah and Irfan Marwat, to abuse the national wealth and the people. Ghulam Ishaq did right by dismissing Benazir Bhutto in 1990 on completion of her first round, together with her highly corrupt government. But then to ensure his own survival as head of state he imposed on Sindh as its caretaker chief minister no less a man than Jam Sadiq Ali, knowing fully well who and what he was and exactly what were his capabilities. His mission in 1990 was to bring in Nawaz Sharif as prime minister, which he successfully did. His mission in 1993 was to dismiss Nawaz and his highly corrupt government. Having done that, he demeaned himself by collaborating with the same Benazir whom he had thrown out and for whom on many an occasion he had expressed his utter and absolute contempt. His mission was then to bring her back and whilst he was doing so he further demeaned himself by agreeing to include in his caretaker cabinet her disgraced and famously corrupt husband, Asif Zardari. Thereafter things went awry. A malleable Supreme Court brought Nawaz back and then a firm chief of army staff threw out both Ishaq and Nawaz. Ghulam Ishaq is back in the news once more. Our world famous gold- medal bedecked nuclear scientist, Abdul Qadeer Khan, has collected money from the people or collected from other monies to which he has acess, to build within the grounds of the GIK University a mausoleum in which GIK will be put to rest when his time on earth runs out. Over Rs.5 million has been spent on this university project. Not believing what I had heard, I asked my friend, suspended speaker Ilahi Bakhsh Soomro, a great supporter of GIK and now rector of the GIK U, whether there was any truth in it. He admitted that there was; the mausoleum stands on a hilltop for all to see and admire. I suggested to Ilahi Bakhsh that he advise GIK not to make a fool of himself and not allow himself to be so degraded. Whether Ilahi Bakhsh can bring himself to do this is questionable. My friend is flip-flopping, hoping finally to be the prime minister of Pakistan - and he may turn out to be a good one. Back in time to Zulfikar Ali Bhutto. Aspiring politicians all over the world, even in sanctimonious Great Britain, wield flattery as a powerful weapon with which to worm their way upwards. For instance, as Richard Crossman, Labour MP and a Wykhemist to boot, used to say, "The way to become a minister is either to lick the arses of the leadership or kick them in the political goolies." (This was quoted by Dalyell's biography of Crossman.) Few can be more adept at the art of flattery than was ZAB. Rising young star ZAB in 1958 wrote a letter to President Iskander Mirza, by whom he had been sent as chairman of a delegation to the UN Conference on the Law of the Sea held at Geneva: "I would like to take this opportunity to reassure you of my imperishable and devoted loyalty to you. Exactly four months before the death of my late father, he had advised me to remain steadfastly loyal to you, as you were not an individual but an institution'. "For the greater good of my country, I feel that your services to Pakistan are indispensable. When the history of our country is written by objective historians your name will be placed before that of even Mr Jinnah. Sir, I say this because I mean it and not because you are the president of my country." It worked. When Iskander and Ayub took over on October 7, 1958, Zulfikar was sworn in as a full-fledged minister in the first martial law cabinet. Being a thoroughbred political animal, flip-floppy and of little character, he realized where power lay and, despite the fact that it was Iskander who was responsible for his rise, stayed on with Ayub Khan after Iskander was deposed and sent into exile. He ingratiated himself to such an extent that Ayub fondly referred to him as his fifth son. In 1976, in the fifth year of his rule over what was left of Pakistan, in a note to the chief of army staff on the subject of 'the elevation of General Ayub to the rank of Field Marshal', he claimed full credit for the master-stroke. In 1959, Ayub was apparently worried about the intrigues and ambitions of certain of his generals. It was ZAB who then advised, 'rather cynically' he said in his note, that since it was essential that Ayub be 'head and shoulders above the others' he should elevate his rank to that of Field Marshal, which Ayub Khan did soon after. Proudly he wrote "I am therefore the hero of Ayub Khan's valorous battles. Of course, the object of this note is not to dismantle the man. Some of us can still refer to him with respect. I am only setting the record straight." Hypocrite? All of this is rather horrid and disgusting. Now to business at hand. We are in deep mire and sinking deeper by the day. The photographs of our sole allies - blind, hooded, armed, hirsute, fierce - carried in the press are enough to frighten even those with the strongest of nerves. No one who wishes to live in peace and prosperity will consider investing in our country. Without keeping our allies well under wraps, or disassociating ourselves from them, and then reviving the economy we will get nowhere. The main news emanating from and about this country concerns Kashmir, terrorists, Shariah laws, interest-free banking, karo-kari, blasphemy laws - which is all rather deflating and discouraging. Kashmir and all that goes with it should be relegated to the back-burner until we can pull ourselves up. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010126 ------------------------------------------------------------------- A glimpse of the future ------------------------------------------------------------------- Ayaz Amir NO need to go to the Malakand Agency or Maulana Samiul Haq's famed redoubt in Akora Khattak to look at the future. The future is all around us, with poisoned fangs pressing its claims on the decaying present. Parts of Chakwal are turning slowly but surely into Afghan localities. The outskirts of the town are pockmarked by Afghan tents. The richer Afghans dominate sections of the main bazaar. The poorer sort push streetcarts or work as day labourers. It is a common sight seeing their children pick rags. Whence (from which of Afghanistan's provinces) have these people come? How many are they? No one knows, least of all the administration which has not the measure of this insidious diaspora. Nor is Chakwal an exception. A vast Afghan influx is changing the colour of the entire north Punjab plain. These Kabuliwallahs are not seasonal migrants or Powindahs driving their flocks south for the winter and then returning to their upland homes when the weather turns warm. They are here to stay, their urge to do so strengthened by the memory of the misery they have fled and the relative plenty they have found here. Is Pakistan a poor country? Few Afghans, or Bangladeshis for that matter, would agree. Beginning with the great Mahmud, Afghans have come to these parts as conquering dynasts. For the first time in history they have entered as termites, infiltrating the woodwork and spreading not by open conquest but relentless encroachment. And just as tired wood is helpless before an onslaught of termites, the weak structure of the Pakistani state is helpless before this unheralded invasion. The Durand Line is a thing of the past. As before the Sikh empire of Maharaja Ranjit Singh, Afghanistan has entered the heartland of Punjab. Is this a call to xenophobia? It could be read like one although it is more a despairing cry over the debilitating cancer that has laid Pakistan low. Today we are in no position to count our own people much less make an accurate count of the Afghans who have pitched tent in our towns and villages. There is a Pakistani diaspora in the Gulf and much further afield. But it is not running loose because the countries wherein it is to be found are better at keeping count of foreigners and of enforcing their own laws. Pakistan by contrast has become an open sieve which anyone can enter and leave at will. Worse, it's also become open territory for anyone to settle in. Iran kept its Afghan refugees under control. General Zia, the source of so many of our sorrows, let them have the freedom of the country. The consequences are now upon us in the form of an Afghan invasion more permanent than any before it. It is also an on-going invasion with Afghanistan's on-going troubles sweeping fresh waves of refugees into Pakistan. The Afghan and Mughal kings who led their armies into India sought local allies to facilitate their plans of conquest. The Afghan invasion whose ravages we are witnessing rests on an unspoken alliance with the clerical forces of Pakistan. How this equation benefits the Afghans is obvious: it provides them with a congenial and friendly environment. But it also benefits the holy fathers of Pakistani fundamentalism who get a ready-made constituency for their cause. Let's hope the barricades never rise in Pakistan. If they do, be not surprised if the holy fathers and the Afghans who have made Pakistan their home make common cause. Nor is this all. The bedrock of this alliance is formed by elements within the Pakistani establishment which espouse the Taliban cause in Afghanistan and that of jihad in Kashmir. If only what was at stake was the future of Afghanistan or Kashmir. It is not. At stake is the future of Pakistan itself. And the question is: can Pakistan get over the hangover induced by the Afghan jihad and begin concentrating on essentials? The administrative form of the state is in ruins. The state can neither maintain law and order nor collect adequate revenue. It also is unable to reverse the Afghan tide. In 1919, after defeat in the first world war, Turkey's problem was not to revive the Khilafat but secure its national borders. Mustafa Kemal's greatness lay in recognizing this. All the archaic claptrap of empire he discarded ruthlessly without regard to nostalgia or false sentiment. But on the question of securing Turkey's national frontiers he did not hesitate to go to war with Greece even though it enjoyed the full backing of the victorious Allies. For the return of Alexandretta on the border with Syria (then a French protectorate) he looked the French in the eye. In his mind he was clear about what was essential for Turkey and what was not. Incidentally, secularism was a byproduct of the Kemalist Revolution, not its central guiding principle. Much in the same way that Lincoln fought the Civil War to preserve the Union and not to end slavery, the end of slavery being one of the consequences of that epic struggle. The ability to distinguish between the essential and non-essential seems beyond us. Which is why for the sake of secondary or even chimerical goals we are imperilling our national well-being. We fought the Afghan war as a US lackey. The consequence of that is upon us in the form of the Afghan invasion entrenched on our soil. What will be the consequence of the jihadi line in Kashmir? It has already led to the growing voice of the religious parties within the country. With what credibility then can the interior minister, Lt Gen Haider, talk of asking the religious parties to remain within the law when their jihadi pursuits endow them with a mythical status which no sheriff of the law dare touch? Unregistered human beings the state is unable to count or control. How can the state get hold of unregistered weapons? Pakistan's problem is not democracy vs dictatorship. It is to restore the state's vitality. The state should be able to count its citizens. It should be able to get rid of illegal foreigners, flush out illegal weapons, maintain order, check electricity theft without having to call in the army for the purpose and carry out a drive to document the economy without provoking a general revolt. Only when the state's moorings are thus secured can it tackle the problems of health, education and development. How will democracy, of the kind we have had, aid this endeavour? The problems of Pakistan have gone beyond democracy, beyond Benazir Bhutto or the return of Nawaz Sharif. The country is in deep crisis and the times call for stern action. It is here that the army's deepest failure lies. Its advent was welcomed on the grounds that the toughness demanded by the times could come only from the army. That this belief rested on false assumptions, and that in expecting radical steps from the army the dismal record of military interventions past was forgotten, is beside the point. On the army's shoulders lay once more the burden of popular expectations. How completely those hopes have been belied needs no comment because it is clear to all. Even so, the requirement of taking a sharp knife to Pakistan's problems remains as fresh as ever. Pakistan is being assaulted from within by a process more dangerous than any overt aggression. Half- measures will not do. Democracy? The very word makes the stomach queasy. No Pakistani variant of democracy can meet the challenge of the Afghan suburbs which spread before me as I go for my evening walks along the Thaneel road. But strongman rule? All we seem to get are tinpot variations of it. Which makes it uncertain how we'll tackle the future whose loud knocking at the gate has already shattered the calm within. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010127 ------------------------------------------------------------------- Defying the popular will ------------------------------------------------------------------- Irfan Husain THE January issue of The Herald carried two important interviews, one with Benazir Bhutto, and the other with retired General Hameed Gul, ex-head of the Inter-Services Intelligence (ISI) and now a hard-line proponent for jihad in Afghanistan and Kashmir. Although Ms Bhutto has been somewhat disingenuous about allegations against her and her husband, the incarcerated Asif Zardari, she makes some very valid observations about the relations between the army and intelligence agencies on the one hand, and an elected prime minister and civil society on the other. Basically, the ex-PM is of the view that given the incessant attempts by various spy outfits to destabilize elected governments, it is not possible for politicians in office to function effectively. To support her contention, she has given numerous examples of the Byzantine intrigues she endured before she was removed on two occasions. We remember all too well the infamous "Operation Midnight Jackal" in which intelligence operatives were videotaped trying to bribe members of the National Assembly to vote against their leader in a no-confidence vote. This is only one of many instances of interference by intelligence agencies in domestic politics. According to Benazir Bhutto, there are now as many as seven agencies playing politics "down to the tehsil level". Perhaps the most blatant bid to thwart the popular will was the hijacking of the 1990 election: General Aslam Beg, then Chief of Army Staff, has publicly admitted to receiving 140 million rupees from the (understandably) defunct Mehran Bank to distribute among anti-Bhutto politicians. To date, the general has not rendered a full accounting of this sum, at least not publicly. General Asad Durrani, then head of the ISI, has submitted a list of Muslim League luminaries who were recipients of this largesse. None of these defenders of democracy has denied getting this cash. Durrani is currently our ambassador to Saudi Arabia; Benazir Bhutto had earlier appointed him to represent Pakistan in Germany. Another ex-director-general of the ISI has also been interviewed in the January issue of The Herald, and his views are chilling in their implications for the future of democracy in Pakistan. When asked: "...Does the will of the people, as reflected by the results of an electoral exercise, not give an indication of the nation's vision?", Gul replied: "It does not, Because if the politicians want to change the agenda, why do they not tell the truth in their election campaigns?" The inference here is that the nation's security agenda is immutable, and only the military is capable of determining it. In no functioning democracy are politicians required to spell out precisely what steps they will take to ensure national security during their tenure. When asked about the 1988 elections in which Gul cobbled together the IJI, an anti-PPP alliance, and whether those elections had been rigged, the ex-head of the ISI responded: "The elections were not rigged. Only conditions were created that were favourable to certain results. One must not be puritanical about this...." And when asked if these activities were undertaken by agencies acting on their own, he categorically replied: "It is not the intelligence agencies. They are not maverick bodies. They are very much part of the inner thinking of the defence establishment". More recently, Javed Hashmi, appointed acting head of the Muslim League by Nawaz Sharif, has complained that the ISI has been trying to break up his party. This would not take very much as the League is largely composed of opportunists who have come together for their own interests when they catch a whiff of power. But it is significant that parties like the Muslim League and the MQM, both of which have enjoyed the blessings and largesse of the defence establishment in the past, should now squeal about the activities of government agencies. There is a real contradiction here, and one that will have to be resolved if this country is to move forward and develop lasting political institutions. On the one hand, we have a defence establishment that has set its own security agenda and is answerable to nobody; and on the other, we have the compulsions of elected politicians who have to balance security considerations with development needs, and who are accountable to parliament and the people. Whenever an elected leader shows any inclination of lowering tensions in the region, the military perceives this as a threat and launches a campaign of disinformation and destabilization. And yet the sober truth is that without normalizing ties with India, distancing ourselves from the Taliban and reducing our defence budget, there will be no fresh investments and no meaningful economic development. So where do we go from here? At most a year from now, the country will begin gearing up for national and provincial elections if the Supreme Court's decision is to be implemented. Once more, the two main contestants will be the PPP and the PML. The latter, however, will be severely handicapped by its popular leader's exile which is widely seen as an act of cowardice. There is thus a real possibility of the PPP returning to power, even if the agencies cobble together another coalition against it. The fundamentalist parties will probably not fare any better than they have in past elections. How will the defence establishment deal with Benazir Bhutto's return to power? The fact is that as far as the military is concerned, she has three major drawbacks: she is a woman, a Sindhi and Zulfikar Ali Bhutto's daughter. The latter sin in unforgivable as he is the scapegoat for the army's defeat and humiliation at Indian hands in 1971. Even Asif Zardari's free and easy ways with the exchequer would have been acceptable to the establishment had his spouse not been a Bhutto. So, although the army high command realizes it has to organize a return to democracy, it feels obliged to fine-tune the result to ensure that a weak government and a pliable prime minister are voted into power. This has been the elusive Holy Grail for GHQ, and one that is simply not achievable because no matter how biddable the prime minister is initially, his own political compulsions drive him (or her) to distance himself from GHQ's agenda. In Nawaz Sharif's case, of course, hubris and a 'heavy mandate' expedited his fall from grace. Given the divergence between the army's perception of security needs and the national demand for social and economic development, we have reached an impasse. We can only move forward if the defence establishment is willing to subordinate its agenda to the popular will.
SPORTS DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010125 ------------------------------------------------------------------- Rs20m grant for PAKISTAN HOCKEY FEDERATION ------------------------------------------------------------------- LAHORE, Jan 24: Pakistan hockey got a shot in the arm on Wednesday when Gen Pervez Musharraf announced a grant of Rs20 million to help it regain lost glory. "Pakistan has always been a sporting nation and my government has top priority for sports," Musharraf said, speaking at a national hockey tournament final. Three-time Olympic and four-time world champions, Pakistan has fallen from its top perch in the hockey arena in recent years. Pakistan lost its Asian title in 1998 to arch rivals India and finished last in the elite six-nation champions trophy in 1999. "We must work together for the revival of our image in international hockey," he said. The government would also provide funds to lay astro-turf at five centers in Karachi, Peshawar, Sialkot, Abbotabad and Bahawalpur, he added. Pakistan Hockey Federation secretary Brigadier Musarratullah Khan said Musharraf's announcement has "given us a sigh of relief." Khan said Pakistan was ready to revive matches against India. "We know that it's beneficial for hockey in Asia that Pakistan and India play each other," he said.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010124 ------------------------------------------------------------------- PCB's cash incentives ------------------------------------------------------------------- By Our Sports Correspondent LAHORE, Jan 23: The Pakistan Cricket Board (PCB) has announced cash prizes for outstanding performances during the five-match series between Pakistan Probables and Pakistan Academy Probables The winning team of each match will get Rs 50,000 while the losing team Rs 25,000. Each team scoring 260 or more runs in an innings will get an addition amount of Rs 12,000. Similarly, the Man-of-the-Match will be awarded a prize of Rs 5,000.For each individual century and fifty Rs 10,000 and Rs 5,000 will be given, respectively. The bowler who will pick four or more wickets will be paid Rs 10,000. Best fielder of the match will be paid Rs 2,000. There are also incentives for spectators, who will not be charged at the gates.A catch in the crowd will be worth Rs 1,000. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010121 ------------------------------------------------------------------- Malik appears before panel ------------------------------------------------------------------- By Our Sports Reporter KARACHI, Jan 20: Former Pakistan captain Salim Malik appeared on Saturday before a disciplinary committee of his employers to clarify a show-cause from them. Malik, who plays for Habib Bank, was banned last May from the game at all levels by the Pakistan Cricket Board (PCB) wants to play again and had already filed an appeal in a civil court. Habib Bank have not sent Malik's name in list of 25 players to the PCB for next month's Patron's Trophy. ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
Dawn page
Webbed by Philip McEldowney
Last update:
.