------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 14 July 2001 Issue : 07/28 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Summit: security agencies put on alert + Pakistan to propose Mandela for Kashmir mediation: paper + Itinerary of Musharraf's stay in India + Permanent LoC can't be accepted: Musharraf + Vajpayee wants talks to continue + UN resolutions not enforceable + Musharraf says no bargain on Kashmir + Coalition partners to boycott high tea + India regrets Pakistan's invitation to APHC + President links all other issues to Kashmir + Talks success Islamabad's prime concern + Islamabad rejects border talks proposal + Kashmir will get disputed status, hopes CE + APHC leaders to meet Musharraf + India terms invitation to APHC an irritant + Summit to focus on Kashmir dispute + Summit not to focus on Kashmir: Vajpayee + Tibet shown as part of Kashmir in papers + No Indian POWs in jails: Moin + Offer to reopen Rajasthan route + New Delhi assured of gas pipeline security + Summit not to provide relief to Kashmiris, says Benazir + Wali optimistic about talks + Henry Hyde to urge Bush to lift sanctions + CE's self-elevation as president challenged + NSC will oversee civilian govts: Moin + NAB Ordinance to be amended soon + Power game in AJK begins + Imran accuses govt of planned rigging in polls + CE escapes unhurt in road crash + Asif ready to make deal with government + Asif challenges court's jurisdiction + Rules stop Zia's son from contest for Nazim's slot + LHC stays sale of Saif's properties + Saudi Arabian special plane leaves + PIA plane escapes disaster + Corrosion ruptured pressure bulk-head + 15 feared dead in massive landslide + Over 2,000 tourists stranded in Naran rescued + Mohammad Ali's condition improves + Salamat Ali Khan is dead + Qateel Shifai passes away + Sindh govt authorized to privatize Lakhra --------------------------------- BUSINESS & ECONOMY + $10.1bn export target in new trade policy + IMF okays third tranche of $131m + NDFC insolvent, says WB report + $150 million loan expected from ADB + Accord signed with WB + 11th EoI for PTCL sell-off received + Weekend profit-selling pushes index down by 7 points --------------------------------------- EDITORIALS & FEATURES + Twenty years to zero Ardeshir Cowasjee + A fresh line in cosmetics Ayaz Amir + The spirit of Southall Irfan Husain ----------- SPORTS + Pakistan crashes out from Asia Cup + Controversial Shoaib and Sohail face Australians + Razzaq signs for Middlesex + Hussain out of second Test + Pakistan Open squash in Lahore on portable court

Summit: security agencies put on alert

AGRA, July 13: Indian security forces went on full alert against a
"high level of threats" on the eve of President Pervez Musharraf's

"Intelligence reports have cautioned against a high level of
threats ... from terrorist and fundamentalist elements who are not
in favour of the summit," the police said in a statement.

Although security officials have not named any group as being a
particular threat, they are on alert for action from right-wing
Hindu groups as well as Muslim radicals.-Reuters

Pakistan to propose Mandela for Kashmir mediation: paper

NEW DELHI, July 13: Pakistan may propose former South African
president Nelson Mandela as a mediator for the dispute over Kashmir
at this weekend's summit with India, an Indian newspaper said.

The Hindustan Times quoted unnamed sources in Islamabad as saying
that President Pervez Musharraf intended to suggest the appointment
of an international facilitator when he sits down with Prime
Minister Atal Behari Vajpayee on Sunday.

"But rather than propose the U.S. or the U.N., both of whom say the
dispute is a bilateral issue, Musharraf plans to suggest a person
of global stature whom New Delhi would find embarrassing to
reject," it said.

New Delhi rejects third-party involvement in the dispute.-

Itinerary of Musharraf's stay in India
Monitoring Desk

KARACHI, July 13: President Pervez Musharraf arrives in Delhi on
Saturday morning. He will be greeted by Indian President K.R.
Narayanan at a ceremony at Rashtrapati Bhavan, the presidential
residence. This is to be followed by a visit to the Mahatma Gandhi
memorial - a traditional stop-off for visiting dignitaries.

President Musharraf is then expected to return to the president's
residence for scheduled meetings with the Indian home and foreign
ministers, and leaders of the opposition Congress Party.

After lunch President Musharraf will visit his ancestral home in
Daryaganj, and visit the shrine of the 13th century Sufi saint,
Hazrat Nizamuddin Auliya.

On Saturday afternoon, President Musharraf will attend a high tea
at the Pakistani High Commission. The High Commission has invited
Kashmiri leaders, including leaders of the All-Party Hurriyat
Conference, to the tea party.

On Saturday night Indian Prime Minister Vajpayee is expected to fly
to Agra for the summit next day. He will be welcomed at Agra
airport by Uttar Pradesh Governor Vishnukant Shastri and Chief
Minister Rajnath Singh and senior officials.

DAY 2: On Sunday morning, President Musharraf will leave for Agra
for the summit. The President is expected to reach Agra at 9:45am
(9:15am PST), where he will be received by Uttar Pradesh Governor
Vishnukant Shastri and Chief Minister Rajnath Singh.

President Musharraf and his wife are expected to be given a
traditional welcome, and garlanded by little girls when they arrive
at their residence in Agra, the Amar Vilas Hotel. Hotel employees
have been told to wear Rajasthani clothes on that day.

The president is expected to leave the Amar Vilas hotel at 11:15am
(10:45 PST) for Jaypee hotel for talks with Prime Minister

Later in the evening at 4:00 pm (3:30pm PST) the president will
visit the Taj Mahal. Later he is expected to attend a dinner hosted
by the governor of Uttar Pradesh.

DAY 3: President Musharraf leaves for Ajmer, in Rajasthan, to visit
the shrine of Hazrat Khawaja Moin-ud-din-Chishti.

Permanent LoC can't be accepted: Musharraf

DUBAI, July 12: President Pervez Musharraf was quoted as saying no
Pakistani leader could accept continued Indian control over most of
the disputed territory of Kashmir and expect to stay in power.

Speaking ahead of a Pakistani-Indian summit at the weekend,
Musharraf said no one in his country would accept the Line of
Control (LoC) which divides the two rival countries in Kashmir as

"Now, who in Pakistan will ever accept this (LoC). Nobody in
Pakistan can accept this and expect to stay in power...," Musharraf
was quoted as telling the Dubai-based Gulf News in an interview to
be published on Friday. "I think it will be very unrealistic for
any Indian leader to expect any leader of Pakistan to go and accept
the permanence of the Line of Control," Musharraf said, according
to the text of the interview, sent to Reuters by Gulf News.

"Respecting the LoC is a different matter, accepting it as a
permanent solution is another matter," he said.

Musharraf said he was willing to sit with the government in New
Delhi and extend his trip by another 48 hours if Delhi was serious
about finding a solution, Gulf News said. -Reuters

Vajpayee wants talks to continue
By M. Ziauddin

NEW DELHI, July 12: Indian Prime Minister Atal Behari Vajpayee has
expressed the hope that the summit talks between him and President
Pervez Musharraf would herald a new process of cooperation between
the two countries.

In an exclusive interview to Dawn, the Indian premier said that
historical bonds and contemporary realities both called for India
and Pakistan to become partners in the process of peace and help
take South Asia from poverty and under-development to collective
prosperity and development.

"I firmly believe that both India and Pakistan would greatly
benefit from the establishment of good neighbourly relations," he

Answering a question, he said it was not possible to evolve a time-
bound arrangement for bringing the dialogue to successful

Mr Vajpayee sounded optimistic about the forthcoming summit, saying
"it is always good to keep on talking." He gave the impression that
his focus at the summit would be to ensure that it did not end as a
one-shot event. He simply smiled when the Indian media flap over
invitation to Hurriyat leaders to meet Gen Musharraf was mentioned.

He gave a hearty laugh when told that if the two countries were to
remove their foreign offices from their midst, they would perhaps
come to a lasting settlement rather quickly.

Mr Vajpayee agreed with the suggestion that there was not such a
gulf of difference between Pakistan's position that it would like
to treat Kashmir as the core problem at the summit and that it was
not averse to discuss other issues as well, and India's position
that it wanted to discuss all the problems, including Kashmir. He
even mentioned the letter of President Musharraf which the General
had written to him accepting the invitation, and said the letter
had made this point very clear.

In reply to another question, he said his country had always held
that nuclear weapons were not weapons of war... "their use in war
will be crime against humanity and nuclear war cannot be won and
must never be fought."

When asked how he reconciled his government's position that Kashmir
was a part of the Indian union with the fact that India had itself
taken the problem to the UN and there were the Security Council
resolutions defining this to be a dispute yet to be settled, Mr
Vajpayee said that India had approached the UN "to vacate an
aggression in Jammu and Kashmir."

Vajpayee hopes for new era of cooperation

UN resolutions not enforceable
By Jawed Naqvi

NEW DELHI, July 12: India ruled out the involvement of any third
party to mediate in its dispute with Pakistan over Kashmir, but
significantly pointed to China as the country holding a part of
Kashmir, which, it alleged, had been "illegally ceded by Pakistan."

The Indian minister for external affairs and defence, Jaswant
Singh, did not name China in his remarks during a pre-summit news
conference but it was clear he meant Beijing as the recipient of
the "illegally ceded" territory in the 1960s.

�Jammu and Kashmir is not the core issue, but it is the core of
Indian nationhood," he told a questioner who wanted to know if
there would ever be a plebiscite in the region.

I have continued to assert that Jammu and Kashmir is not the cause,
it's a consequence. So as far as the question of self-determination
or plebiscite is concerned, please go back to 1948. And let me
remind you that the first reference to the United Nations about
Jammu and Kashmir was made by India not Pakistan.

Secondly, India made the reference about Jammu and Kashmir which
Pakistan had subsequently converted into the larger question of
India-Pak relations. This is a matter of fact.

Thirdly, what you are referring to - the UN Security Council
resolutions - they had three integral components, ceasefire, truce
- truce meant vacation of all Pakistan troops from the total Jammu
and Kashmir state and reimposition of administration, and
thereafter only the question of plebiscite or referendum. Because
the first two were never fulfilled by Pakistan the third just
simply could never be fulfilled.

"Those resolutions are not enforceable. When you talk of referendum
or plebiscite, are you talking of the total state of Jammu and
Kashmir which has Ladakh in it, which has Jammu in it, which has
the Srinagar Valley in it. You must also remember that it is also
the northern areas which are not treated as part of the Pak
Occupied Kashmir. Please also remember that the Shaksgam Valley of
the state of Jammu and Kashmir has been illegally and wrongly ceded
by Pakistan.

"So where are we talking of holding a referendum. And therefore if
you related to what I am saying, that India has not and cannot
subscribe to denominational nationalism, it is civic nationalism,
the question of referendum does simply not arise."

"Although India and Pakistan experimented with multilateralism
between 1947-67, that phase was over with the Shimla Agreement of
1972," Mr Singh said.

"Whenever there is any attempt to introduce any kind of
multilateralism or any other third element, they bring with it
their own agendas which in our subcontinent always result in
further complicating and destabilizing rather than solving the
issue," he said.

HIGH TEA: Mr singh said India was disappointed by President Gen
Pervez Musharraf's invitation to the All Parties Hurriyat
Conference but was equally vocal in emphasizing that the event had
not cast any shadow on the summit meeting.

He told reporters that contrary to speculation in the Indian and
perhaps Pakistan media, Gen Musharraf would be given full courtesy
and respect as the head of state of Pakistan, including a tri-
service guard of honour.

"The government has made its position clear," an annoyed Singh
retorted to persistent questioning on the issue that had gripped a
large section of the major newspapers and channels.

"I don't have to repeat it ad infinitum that the invitation to His
Excellency General Pervez Musharraf Sahib was to meet with the
Prime Minister of India. These are extraneous elements that have
been brought into the situation. We are disappointed by this. We
feel that so far as the meeting is concerned it will go on as

Asked if the APHC's proposed meeting with Gen Musharraf had cast a
shadow on the summit, he shot back: "The shadow seems to be cast
much more on the media than on the summit. So far as the government
is concerned we are approaching the summit in the manner and spirit
in which the invitation was extended. It is, of course, our
expectation that the spirit in which the invitation was accepted by
Pakistan and by General Pervez Musharraf Sahib, that spirit shall
be maintained. But so far as the summit is concerned, I am not
seeing any shadows. Certainly not the shadows that the media seems
to be chasing."

NEW DELHI, July 12: India ruled out any discussion of a proposal to
run a multi-million-dollar overland gas pipeline through Pakistan,
when leaders of both countries meet this weekend. "The gas pipeline
is a bilateral issue between India and Iran," Indian Foreign
Minister Jaswant Singh told reporters, adding that the project was
not subject to Pakistan's veto or agreement.-AFP

Musharraf says no bargain on Kashmir
By Faraz Hashmi

ISLAMABAD, July 11: President Gen Pervez Musharraf consulted Saudi
Crown Prince Abdullah and UAE President Shaikh Zayed bin Sultan Al
Nahyan on his forthcoming meeting with Indian Prime Minister Atal
Behari Vajpayee.

The president talked by telephone to Prince Abdullah and the UAE
leader about his July 14-16 visit to India, Information Secretary
Anwer Mehmood and president's spokesman Maj-Gen Rashid Qureshi told
a press conference.

President Musharraf also met Chinese Ambassador to Islamabad and
gave him a letter addressed to Prime Minister Zhu Rongji.

CE'S DELEGATION: The information secretary said that the
president's entourage would consist of Foreign Minister Abdus
Sattar, Foreign Secretary Inamul Haq, Chief of Staff to Chief
Executive Lt-Gen Ghulam Muhammad, Maj-Gen Rashid Qureshi and

The official delegation would leave on Saturday morning and would
arrive in New Delhi at 8:15am Indian Standard Time, he said.

Coalition partners to boycott high tea

NEW DELHI, July 11: The atmosphere before the weekend's Pakistan-
India summit turned bitter when all members of India's governing
coalition decided to boycott the reception at Pakistan's High
Commission for President Pervez Musharraf.

"It was decided that no one from the National Democratic Alliance
will attend the high tea at the Pakistan High Commission," NDA
convener George Fernandes told reporters after a meeting of
coalition leaders.

The tea party has sparked off controversy with its invitation to
the All Party Hurriyat Conference (APHC) - to attend and meet the

New Delhi had wanted the Hurriyat excluded from President
Musharraf's visit and had "advised" the high commission here
against extending the invitation.

Some members of the Hurriyat have themselves decided to turn down
the tea invitation on grounds that they have been excluded from the
summit. "We are prepared to discuss all the issues," foreign
ministry spokeswoman Nirupama Rao said of the upcoming meet in

The discussions will be based on the broad framework of a
"composite dialogue which sets the tone for future direction", Rao
said, adding trade and commerce were part of the issues India was
open to negotiating on. "And, so, all issues of the composite
dialogue will be logically part of the talks," she added.-AFP

India regrets Pakistan's invitation to APHC
By Jawed Naqvi

NEW DELHI, July 11: India said it regretted the decision by
Pakistan President Gen Pervez Musharraf to invite leaders of
Kashmir's All Parties Hurriyat Conference to a tea party in New

Minister for External Affairs and Defence Jaswant Singh told
Doordarshan in an interview: "The invitation to Gen Musharraf was
sent by the Prime Minister for talks between the two leaders in
Delhi or Agra. If there was any other intention about the visit
from the other side it should have been expressed. It is
regrettable that it all happened like this."

Mr Singh's remarks followed a decision by the ruling National
Democratic Alliance to boycott the reception to be hosted by
Pakistan's High Commissioner Ashraf Jehangir Qazi who invited the
APHC leaders to the tea party at the president's behest.

Singh said Pakistan could choose to project the agenda for the
forthcoming talks the way it wanted, but there was no way in which
it could underplay issues related with confidence building measures
that India has proposed in a recent burst of press announcements.
"These measures involve the people of our countries and people
cannot be peripheral issues," Singh declared.

President links all other issues to Kashmir

ISLAMABAD, July 11: President Gen Pervez Musharraf said that with
the world attention focused on the India-Pakistan summit he was
going to New Delhi with the firm idea of finding a resolution to
the Kashmir issue.

"I go there with all seriousness and aspirations," Gen Musharraf
told television. "I go there with all seriousness to initiate a
process of movement towards the resolution of the Kashmir dispute,"
he said.

"I consider this extremely essential ... because this is not only
my hope but it is also the hope of the people of Pakistan. I think
also it is the hope of the people of India. "And, may I also add it
is the hope and aspiration of the people of the entire world," Gen
Musharraf said.

"The entire world's attention is focused on this dialogue.  So I
only hope that we achieve progress in the dialogue towards
resolution of the core dispute of Kashmir."-AFP/APP

Talks success Islamabad's prime concern
By Syed Talat Hussain

ISLAMABAD, July 7: Pakistan is keen that the meeting between
President Gen Pervez Musharraf with All Parties Hurriyat Conference
in Delhi takes place, but a successful summit with Indian Prime
Minister Atal Behari Vajpayee is at present the prime concern of
Islamabad, officials told Dawn.

Responding to the reports emanating from India that Delhi's tough
position on the meeting is souring the atmosphere of the summit
meeting, officials said the perception that Musharraf-Vajpayee
meeting was in danger of being cancelled over the APHC controversy
was baseless.

"A lot has gone into the preparation of the summit, and a lot is at
stake for both sides. We do acknowledge the centrality of the
Kashmiris to the final solution to the Kashmir problem, however
there is no evidence, either from our side or from India, that the
meeting between the two leaders can be held hostage to this
controversy," an official said.

He also denied that at any stage Pakistan intended to deliberately
score a point against India by extending an invitation to the APHC.

"Let us get our facts right. The invitation to the APHC is for a
meeting over tea. It is not a structured dialogue where issues will
be debated methodically. President Musharraf has returned a
courtesy of writing to APHC for he had received a letter from them.
Now India is the host country. We hope that they would play the
good hosts, but if they chose not to, the summit meeting will still
take place," the official said.

Responding to a question on the criticism of some APHC leaders that
Pakistan has ditched them, the official said all such talk is
senseless. "We have stood by them through thick and thin. There is
no such thing as anyone being ditched," he said.

Islamabad rejects border talks proposal

ISLAMABAD, July 9: Pakistan turned down an Indian proposal that
their senior military officers meet on Tuesday and said such a
contact could be made only after the July 14-16 summit.

A foreign ministry spokesman said Pakistan's position on the matter
had been conveyed to India by High Commissioner Ashraf Qazi.

Earlier on Monday, an unnamed official spokesman said Pakistan had
not received any proposal from India that its Director General of
Military Operations (DGMO) visit Islamabad on Tuesday for talks on
promoting peace between the two countries.

"But if there is any such proposal (for a meeting) it will be
processed and assessed by the government and an appropriate
decision will be taken. It will be premature to say more on the
issue at present," Maj-Gen Rashid Qureshi, head of the Inter-
Services Public Relations, told a press conference earlier. -

Delhi seeks dialogue on nuclear issue: India has formally proposed
to Pakistan to start an official dialogue on the nuclear issue,
official sources here said. The proposal to hold expert-level talks
was conveyed to Pakistan's high commissioner Ashraf Jehangir Qazi
when he called on foreign secretary Chokila Iyer, the sources

Kashmir will get disputed status, hopes CE
By Syed Talat Hussain

ISLAMABAD, July 8: President General Pervez Musharraf hopes to get
Kashmir acknowledged by India as an unsettled dispute in the joint
statement to be issued at the end of the summit meeting with prime
minister Atal Behari Vajpayee, diplomatic sources told Dawn.

Providing an insight into the minimum objective which president has
in mind for the summit meeting, western diplomats who met Gen
Musharraf recently said his prime concern is to pin Indian down to
accepting that Kashmir is an issue that has to be addressed. "That
way he is not looking for much. He simply wants that the final
outcome of the summit must contain an unequivocal statement from
Delhi that Kashmir is a problem. He hopes that the proceedings of
the summit with regards to Kashmir will go beyond India's position
that the 45 per cent of the territory that it controls is non-
negotiable and its only the future of the area under Pakistan's
control which has to be sorted out," said the sources.

The sources said Gen Musharraf is also aiming for a timeframe to be
set within which Kashmir must be addressed. "A time bound framework
for the solution of Kashmir, or even a clearly carved roadmap for
the negotiations to proceed on Kashmir, is another objective he may
strive for," said the sources.

APHC leaders to meet Musharraf
Monitoring Desk

NEW DELHI, July 10: Hurriyat Conference leaders would have a
closed-door meeting with President Pervez Musharraf and Foreign
Minister Abdus Sattar during a reception at the residence of the
Pakistani high commissioner on July 14, Hurriyat sources said.

The reception is likely to be attended by six out of the seven
executive members of the Hurriyat Conference as Yaseen Malik, who
represents JKLF, is away in London.

While three leaders, including Hurriyat Conference Chairman Abdul
Gani Bhat, Sheikh Aziz and Mirwaiz Umer Farooq were camping in the
capital, fire-brand Jamaat-i-Islami leader Syed Ali Shah Geelani,
Abdul Gani Lone and Maulana Abas Ansari would be flying in here
before the week-end.

When asked to confirm the reports about the meeting, Bhat said: "I
refuse to comment on this. The Hurriyat Conference wrote to
Musharraf and Prime Minister Atal Behari Vajpayee. While the former
responded, the latter is yet to reply."

About the possibility of a meeting, he quoted Musharraf's letter in
which he had said: "I look forward to an opportunity to meet you
during my visit to India." Bhat said he viewed "the word
opportunity with great significance and obviously the reception
provides the same."

India terms invitation to APHC an irritant
Monitoring Desk

ISLAMABAD, July 7: India has firmly told Pakistan that the
invitation to Hurriyat leaders to the 'High Tea', to be hosted by
Pakistan High Commission for President Pervez Musaharraf during his
visit to India, would "vitiate" the atmosphere for the Indo-
Pakistan summit.

The reservations over the change in Pakistan's stand overriding
Indian objections were conveyed by Indian High Commissioner in
Islamabad Vijay K. Nambiar to Pakistan Foreign Secretary Inamul
Haq,official sources said.

Mr Haq heard the Indian viewpoint and promised to convey it to the
Pakistan leadership. The two officials also discussed the
preparations being carried out by both the countries for the July
15 summit meeting at Agra between President Musharraf and Prime
Minister Atal Behari Vajpayee, the sources said.

Summit to focus on Kashmir dispute
By Ihtasham ul Haque

ISLAMABAD, July 10: Talks between President Gen Pervez Musharraf
and Indian Prime Minister Atal Behari Vajpayee will focus on

Briefing reporters, President's Press Secretary Maj-Gen Raashid
Qurashi and Secretary Information Syed Anwar Mahmood said that a
number of issues would come up for discussion but Kashmir will be
the focus of two-day discussions being held from July 14 in India.

They said that since Pakistan and India recognized that Kashmir was
a dispute, they both would try to resolve it with a view to
bringing peace in the region. In this regard, they also referred to
President Musharraf's statement that Pakistan and India needed to
take steps to settle the 53-year-old dispute.

Maj-Gen Raashid Qurashi, said there was no fixed agenda for talks
and that all issues could come up for discussion between the two

Summit not to focus on Kashmir: Vajpayee

NEW DELHI, July 9: Indian Prime Minister Atal Behari Vajpayee won
the full backing of opposition parties as he pledged to stop
Kashmir becoming the sole issue at the summit with President Pervez

"Pakistan says Kashmir is a core issue and India doesn't want to
talk about Kashmir. This is not true," Vajpayee told an all-party
meeting in New Delhi.

"Even now there is no reservation about talking about Kashmir. But
Kashmir is not one issue alone. It has to be seen in its entirety,"
Vajpayee was quoted as saying by Parliamentary Affairs Minister
Pramod Mahajan.

As well as Kashmir, India wanted to raise issues like cross-border
terrorism and trade, as well as ways to improve economic ties and
people-to-people contacts, Vajpayee said.-AFP

Tibet shown as part of Kashmir in papers
By Jawed Naqvi

NEW DELHI, July 8: The controversial document that India holds as
the basis of its claim on Jammu and Kashmir also acknowledged then
ruler of Kashmir Maharaja Hari Singh as the ruler of Tibet, a true
copy of the document made available to Dawn reveals.

Indian and Pakistani officials declined to be drawn into a
discussion on the Instrument of Accession signed by the ruler on
October 26, 1947 and accepted by Lord Mountbatten the following
day. But analysts said the former princely state appeared to have
at least some claim on Tibet although they declined to say if it
was the Aksai Chin region that China now controls and Delhi claims
as belonging to India.

"Since the Indian case rests on the legality of the Instrument of
Accession, India cannot, or at least should not, ignore the paper
which it cites to seek legitimacy over Jammu and Kashmir," a
diplomat told Dawn. "Since Tibet is mentioned in the paper as part
of the former ruler's domain, India should go public in explaining
where it stands on that claim."

The photocopy of the Instrument of Accession was made available to
some other journalists too.

Pakistan officials say privately that the document was forged, a
charge not accepted by the world players with stakes in the region.

Offer to reopen Rajasthan route
By Jawed Naqvi

NEW DELHI, July 9: Indian Prime Minister Atal Behari Vajpayee went
into a Nehruvian mode on Monday, announcing the revival of an old
land route to Pakistan that links Rajasthan with Sindh, and
signalling the resumption of normal civilian traffic between
Muzaffarabad and Srinagar in Kashmir with the promise of an easier
instant visa regime.

Indian foreign ministry spokeswoman Nirupama Rao said Vajpayee had
ordered that "henceforth Pakistani passport holders will be allowed
to come by the road route and obtain visas at the check post at
Attari." She said an additional checkpost would be opened at
Munabao, in Rajasthan.

"Similar checkposts will also be opened at designated points along
the International Border and the Line of Control in Jammu and
Kashmir. Administrative arrangements, including those for
transport, will be urgently put in place so as to implement the
prime minister's decision within three months," Rao declared.

Indian officials said, however, that the humiliating rule which
requires most Pakistani visitors to report their arrival in each
Indian city they visit was not going to be changed. They added
though, in reply to a question, that the controversy over the
Jinnah House in Mumbai, which has stalled the re-opening of the two
countries' consulates in Mumbai and Karachi was "not a stumbling
block" to progress in that direction.

Analysts said this comment could signal a shift in India's position
and that the house that the Quad-i-Azam owned in Mumbai would be
home to a Pakistani consulate.

Analysts said the road link in Rajisthan-Sindh could be followed by
a resumption of railway traffic. Some existing links between the
two countries are not currently in use; for example, the metre
gauge rail link between Khokrapar in the Sindh Province of Pakistan
and Munabao in Rajasthan of India, analysts said.

A similar announcement regarding the proposed visit of the head of
India's military operations seemed to have caught even President
Pervez Musharraf by surprise. It was eventually declared that the
two DGMOs did speak.

No Indian POWs in jails: Moin
By Masood Haider

NEW YORK, July 10: The federal minister for interior, Moinuddin
Haider, said here that he believes that there are no Indian
prisoners of war languishing in Pakistani jails since the 1971 war.

Responding to reports in Indian and some Pakistani papers that some
Indian families have sought release of the prisoners, Haider told
Dawn before leaving for New York that he had asked his department
to look into the reports and search the jails for any such

He said that "if such prisoners are found government would take
appropriate action. But he reiterated "I think there are no such
Indian prisoners in Pakistani jails."

New Delhi assured of gas pipeline security
Staff Reporter

ISLAMABAD, July 7: Pakistan has completed its preparatory work on
the gas pipeline project - involving Pakistan, India and Iran - but
it is unclear whether the subject will be on the agenda of the
forthcoming summit meeting, Petroleum Minister Usman Aminuddin

"The agenda is not final as yet and it is up to the president (Gen
Pervez Musharraf) to decide. We have done our preparatory work so
that we are ready in case the issue is discussed," the minister
told a press conference.

When asked whether Pakistan was interested to discuss the issue
with India bilaterally, he said: "It has to be decided by the
president." However, he pointed out, Pakistan had offered through
Iran guarantees on throughput and safety issues of the pipeline.

Summit not to provide relief to Kashmiris, says Benazir
Staff Correspondent

DUBAI, July 8: The summit meeting between President Pervez
Musharraf and Indian Prime Minister Atal Behari Vajpayee is not
expected to provide any relief to the Kashmiri people, former
premier Benazir Bhutto said.

In an interview to Dawn from London she said that the talks would
not lower violence in the Valley and focus on nuclear issue, Kargil
re-deployment, gas pipeline, and trade.

"I hope that I am proved wrong, but I do not see any breakthrough,"
she said, adding that one lobby has too much expectations from the
meeting between the leaders of the two countries.

"As a result of the talks, only the divided families of the
Kashmiris on the two sides of the Line of Control would be able to
meet each other," she said stressing that India and Pakistan should
be able to manage the conflict. She said General Musharraf was not
elected president so whom he will be representing at the talks with

"We feel that the talks are being held under pressure from some
foreign powers on both countries. Also, Gen. Musharraf wants to
release the pressure from Afghanistan, which is reeling under
sanctions, and save his chair as head of the country," she claimed.

Wali optimistic about talks
Staff Reporter

ISLAMABAD July 7: Veteran politician, Khan Abdul Wali Khan has
expressed cautious optimism about a positive outcome from
Musharraf-Vajpayee summit meeting.

Talking to Dawn at Islamabad airport prior to his departure for
London on Saturday for medical checkup, the leader of Awami
National Party (ANP) said: "He (General Musharraf) is likely to
come back with some good news". He however warned, "no immediate
conclusions should be drawn as Kashmir is an old and chronic issue
and its settlement may take some time". He was however pleased
about what he termed "a good start which we have been advocating
for decades and in turn being branded as Ghaddars (traitors)."

Henry Hyde to urge Bush to lift sanctions
Staff Correspondent

CHICAGO, July 8: The chairman of the House of Representatives'
foreign relations committee, Representative Henry Hyde, made a
commitment that he would urge the Bush administration to lift
economic sanctions against Pakistan.

He reiterated his often expressed view that the sanctions had
outlived their utility and the purpose for which they were applied
was no longer applicable. It was understandable that Pakistan
should have carried out its nuclear tests because it was India that
had set off that particular episode in South Asia, Mr Hyde pointed

Representative Hyde, however, stressed that a full restoration of
democracy and the holding of free elections were "very important"
for the United States-Pakistan relationship to gain its real
potential. He referred also to Foreign Minister Abdul Sattar's
visit last month to Washington and his meetings here that he
described as "very impressive", but said what happens in the next
few months in the context of restoration of democracy would be
carefully watched.

CE's self-elevation as president challenged
Staff Reporter

ISLAMABAD, July 9: The Supreme Court received a petition
challenging the "self-induction" of Gen Pervez Musharraf as
president and removal of the elected president and dissolution of
the National Assembly.

Chaudhry Shafiq Ahmad, an advocate of Supreme Court from
Rawalpindi, in his petition filed under Article 184(3) of the
Constitution, made Gen Pervez Musharraf, chairman Joint Chiefs of
Staff Committee, Chief of Army Staff, and chief executive of
Pakistan as respondent in the case.

"Yes the office has received the petition and is examining it," an
official of the SC stated when approached.

The petitioner stated that "the respondent (Gen Pervez Musharraf)
has committed high treason as envisaged in Article 6 of the
Constitution." Stating the grounds for his petition, he contended
that under Article 5(2) of the Constitution, obedience to
Constitution and law was an inviolable obligation of every citizen.

"But contrary to this constitutional obligation, the acts of the
respondent of self-assumption and self-induction as president of
Pakistan, the removal of elected president and dissolution of
National Assembly, are not only the acts of disobedience and
subversion but flagrantly unconstitutional, illegal, against all
norms of justice, equity and fair play."

The petitioner stated that the act of becoming president was highly
violative of Article 41 of the Constitution wherein the complete
and detailed procedure for the election of the president had been
provided. "The whole exercise of styling, adopting, assuming,
induction himself as President of Pakistan on the part of the
respondent is absolutely unwarranted and alien to the

The petitioner stated that the respondent being a confirmed public
servant in the Pakistan Army and receiving remunerations for his
services, was ineligible and incompetent to become the President of
Pakistan. "Even in case of election of the president the respondent
in his capacity as Chief of Army Staff, stood disqualified even to
become a candidate and to file a nomination papers in this behalf."

He further stated that the removal (or in case of resignation of
Mohammad Rafiq Tarar) is absolutely in complete disregard and
contrary to the provisions of Article 47 and 44(3) of the

The petitioner prayed to the court to declare the self-induction of
Gen Pervez Musharraf as President of Pakistan, removal of the
elected president, and dissolution of National Assembly as illegal,
ultra vires of the Constitution, without lawful authority and of no
legal effect.

NSC will oversee civilian govts: Moin
Staff Correspondent

NEW YORK, July 11: Interior Minister Moinuddin Haider said here
that the National Security Council would oversee the civilian
governments in the future.

Talking to newsmen, Mr Haider said that in view of the record of
civilian governments it was essential that a body be formed to
ensure the continuity of reforms instituted by the military regime.

"This was essential to give signal to the international community
that economic reforms instituted by the present regime would not be
derailed by the civilian government," he added.

Asked whether the NSC would act like a supervising authority over
the future governments, he said: "Yes."

NAB Ordinance to be amended soon
By Rafaqat Ali

ISLAMABAD, July 7: The government will soon amend the National
Accountability Bureau Ordinance, permitting the placement of any
document acquired from a foreign country, showing corruption of any
Pakistani, in the Accountability Court.

The amendments are being introduced after NAB authorities faced
difficulty in convincing the Supreme Court on the appeals of Ms
Benazir Bhutto and Asif Ali Zardari in the SGS case that the
documents acquired from the foreign jurisdiction were legally

It was pointed out to the Supreme Court bench that there was no
provision in the NAB Ordinance which permitted the prosecution to
place documents acquired from a foreign country for the record of
the court.

The Supreme Court had asked the government to bring the NAB court
under the existing judicial system.

The willful defaulter, under the amended law, would be given 30
days by NAB and on the expiry of that period he would also be
entitled to another notice of seven days to be given by the
Governor of State Bank of Pakistan, before the state apparatus
would step in for the recovery of the defaulted amount.

The maximum period of remand from 90 days would be reduced to 15
days. There is, however, no bar on NAB to keep the accused in
custody for 90 days without registration of any case. The only
change in the original law would be production of the accused in
the court of law after every fortnight.

Under the amended ordinance, NAB chairman would have powers to
freeze the assets of an accused for 30 days only. A person, not
accused in any case, but his assets were frozen on suspicion that
he is not the real owner, will be given relief in the amended law.

The amended law would provide 10 years disqualification for the
convict as against the original period of 21 years.

The next NAB chairman would be appointed by the President in
consultation with the Chief Justice of Pakistan for a minimum
period of two years. The sitting chairman, however, would continue
in his office for three years from the day he assumed his office.

Power game in AJK begins
By Ahmed Hassan

ISLAMABAD, July 12: Tense behind-the-scene manoeuvres for the
formation of new Azad Jammu and Kashmir government have begun
amidst reports of making and breaking of alliances in the power
game, reliable sources told Dawn here.

In a related development, Sardar Sikandar Hayat Khan, Sardar Abdul
Qayum Khan and his political heir son Sardar Atique Ahmed Khan have
held separate meetings with GOC Murree Maj-Gen Shahid Aziz, in
charge of Azad Kashmir affairs, over the last 24 hours.

Earlier, prime minister Barrister Sultan Mehmud Chaudhry had held a
similar meeting with military high-ups the other day and discussed
with them political moves in the Azad Kashmir state.

The military government, which has won laurels for showing absolute
impartiality in the just concluded AJK polls, continues to play a
behind-the scene role by providing guidance where needed.

The central government was extra cautious in dealing with the AJK
political affairs to avoid a mishap of far-reaching consequences,
specially at the historic moment of Pakistan-India Agra summit.

Imran accuses govt of planned rigging in polls
Staff Reporter

KARACHI, July 8: Alleging that rigging had been rampant in the
union councils elections in Karachi and Lahore, Chairman Pakistan
Tehreek-i-Insaf, Imran Khan, said the government, in a planned way,
had ensured the success of the Hamkhiyal group candidates in

He said that rigging certainly had taken place in Karachi, but not
in an organized manner. He alleged that huge amount of money had
been spent to bribe the presiding officers.

CE escapes unhurt in road crash
By Mohamed Asghar

ISLAMABAD, July 9: President Gen Pervez Musharraf escaped narrowly
in a road accident while his gunman and the driver of his escorting
car sustained injuries when a car smashed into their vehicle near
Islamabad Airport, police sources said.

The accident occurred when a private car appeared from the left
side and smashed into the car escorting the VVIP convoy near the
entrance gate of the Islamabad International Airport. As a result,
the driver of the escorting car Mohammad Tariq and the chief
executive's gunman Sadiq sustained injuries and their car was

The accident created panic among the security officials who
immediately cleared the road and impounded the private car and
arrested the driver.

The Airport police confirmed the incident and registration of a
case against Abdul Hafeez.

Asif ready to make deal with government
By M.H. Khan

HYDERABAD, July 7: "The rulers want to hang me and I am being taken
to the same course that had led to the judicial murder of Zulfikar
Ali Bhutto. Yes! I am ready to make a political deal in the larger
interest of the country but there is no question of any personal
deal". This was stated by Asif Ali Zardari, while talking to Dawn.

About the return of Benazir Bhutto to Pakistan, he said although he
was not in touch with her but "she would return home at proper
time". He said that she was struggling for democracy at proper
forums outside the country in her own way because she could not
have done it by remaining within the country as her movement would
have been restricted here. "Our rulers always look toward the
pressure mounted by foreign powers. They have in fact improved our
image politically. We are worried about the masses. Let the
military rulers utilize all their energies in dealing with the
affairs of the country. The Chief Executive is keeping five
portfolios in his hand at a time. And under these circumstances,
any handpicked prime minister would be useless," he said.

About reports that a deal is going to be finalised between him and
the government on the pattern of Nawaz Sharif, he said, "I am ready
for any political deal and that too in the larger interest of the
country. The question of any personal deal simply does not arise."

About the retirement of Justice Malik Mohammad Qayyum of the Lahore
High Court, Mr Asif Zardari said that the Almighty had ensured
justice to him, and added that he (Asif) had not lost courage
because the masses were with him and he would continue his legal

Asif challenges court's jurisdiction
Staff Correspondent

HYDERABAD, July 7: Asif Ali Zardari was produced before a Civil
Judge and First Class Magistrate (FCM), Mr Saudagar Ali Solangi
where his objections along with the statements of two prosecution
witnesses were recorded in the double murder case of a former
federal secretary, Alam Baluch, and his gunman, Imdad.

Although advocates Farook Naek and Yusuf Leghari remained present
in the courtroom throughout the proceedings, yet they did not
represent Mr Zardari in the matter formally.

While Zardari's co-accused remained standing, he was provided a
chair in the dock. Zardari sought permission for making some oral

He claimed that he wanted to know that under what authority he was
brought to Hyderabad and for what purpose. "I was picked up from
Islamabad where I was admitted in the PIMS, put on a Karachi-bound
plane and was shifted to Karachi Central Jail. Today I was brought
to Hyderabad. This is just illegal. I do not know anything about
the proceedings of the case. I do not know the law. I want to use
my right of defence and the same should be given to me under the
constitution of Pakistan. You should take notice of all that has
happened to me. I was not served any notice for production. My
objection should be brought on record and then the court may
proceed with the matter," Mr Zardari argued, and asked the judge
whether he was taking any notice of his complaint.

He said "I have not been able to engage counsel nor consult any
counsel nor do I know the facts of the case. I should be given an
opportunity to engage and consult counsel which is my
constitutional right. Despite my objections this court has recorded
the statement of witnesses that shows bias and malice of the court
towards me. I have no faith in this honorable court. I am an under-
trial prisoner of the STA Court, Hyderabad, in judicial custody and
can be produced only with the prior order of the trial court. At
present, my police custody is illegal."

The hearing of the main double murder case in the STA Court,
Hyderabad, has been fixed for July 28.

Rules stop Zia's son from contest for Nazim's slot
By Tariq Saeed

TOBA TEK SINGH, July 13: Former MPA Dr Anwarul Haq could not
announce his candidature for Toba Tek Singh district nazim's slot
because he was not a registered voter.

It is essential for a candidate to be a registered voter in a
district from where he or she is willing to contest.

Sources disclosed here that Dr Anwarul Haq had applied for his
registration as voter to the Punjab Election Commission. The
commission sent his application to the Toba Tek Singh election
commissioner with remarks that the plea should be "considered under

The sources said that the application was received in the office of
the election officer on July 7 without having any documentary proof
of movable or immovable property in the district. In the meantime,
schedule for district nazim poll was announced and the election
officer sent back the application to the Punjab election

It is said that former federal minister and PML (like-minded)
central leader Ijazul Haq had sought tickets for Faisalabad and
Toba Tek Singh district nazims for former MPA Zahid Nazir and his
brother Dr Anwarul Haq. His request for Zahid Nazir was rejected
and party ticket was given to Col Ghulam Rasool Sahi (retired),
brother of former MPA Chaudhry Afzal Sahi. But in the case of Toba
Tek Singh, the ticket was given to Dr Anwarul Haq.

The minister dispelled the impression that the government was
backing the candidates of a political party. The government has
nothing to do with any political party, he added.

Mr Khan said the government would disqualify those candidates for
district and tehsil nazim slot who would exceed the approved limit
of expenditures during election campaign.

LHC stays sale of Saif's properties
Staff Reporter

ISLAMABAD, July 11: The Lahore High Court, Rawalpindi Bench,
restrained the authorities from selling the mortgaged properties of
Saifur Rehman and his family till the disposal of Habib Bank suit
for the recovery of Rs388 million from his Redco group.

The order was passed by Justice Mohammad Nawaz Abbasi, on the
apprehension of the Saifur Rehman's family that the property which
was mortgaged for obtaining the loan was likely to be sold by the

Habib Bank's suit for recovery of Rs388 million from Redco is
pending in the Lahore High Court, Rawalpindi bench, for the last
few month. The family is also defaulter of United Bank Limited of
Rs916 million.

For obtaining loan they had mortgaged Redco plaza and Pre-casting
Factory in Islamabad. In case the suit was decreed by the court,
the mortgaged properties might be attached for recovering the
defaulted amount.

Saudi Arabian special plane leaves
Staff Reporter

ISLAMABAD, July 9: The special plane that arrived here from Riyadh,
Saudi Arabia, with a top-level delegation on board, left Chaklala
Airbase authorities said. The delegation, led by Sad-al-Harari (a
Saudi national of Lebanese origin), was received by Finance
Minister Shaukat Aziz at the airport, they said.

The special plane belonging to Saudi Oger Company was carrying Sad-
al-Harari, the son of Lebanese prime minister Rafiq-al-Harari, who
had shown interest in buying the Pakistan Telecommunication
Corporation and had held negotiations with top Pakistani
authorities in the past, a government official said.

The delegation which was driven to Islamabad with the finance
minister, returned to the airbase after completing negotiations
with the Pakistani authorities, the source said.

PIA plane escapes disaster
Staff Reporter

RAWALPINDI, July 10: A Pakistan International Airlines jet
miraculously escaped disaster once again bringing into limelight
the negligence of the engineers of the national flag carrier. The
nose wheel of a Jeddah-bound flight PK 753 burst immediately after
taking off from Peshawar airport. Sources blamed the engineering
section for the mishap.

No sooner had the plane took off than a massive vibration was felt
and the plane made an emergency landing at Karachi airport safely.
The plane after few hours' maintenance again took off for its

Corrosion ruptured pressure bulk-head
By Nasir Malik

ISLAMABAD, July 10: Experts who examined the Pakistan International
Airline (PIA) Airbus A-300's damaged "pressure bulk-head" have
found that its lower area had corroded, a highly reliable source
privy to the inspection of the aircraft told Dawn .

The pressure bulk-head was ruptured when the aircraft was cruising
at 28,500ft on its way from Lahore to Karachi on May 25. Because of
the sudden rupture, the rear toilets had disintegrated and
everything like toilet rolls, tissue papers, towels, were sucked
into the stabilizer compartment, where the entire tail control
system is located.

The debris damaged the green hydraulic system, ruptured APU fuel
line and jammed all control cables because of which the aircraft
started going into pitch-up mode (take-off position) and it was
almost approaching stalling position, when the pilots succeeded in
controlling the aircraft.

The source said that the structure of the pressure bulk-head is a
"fail-safe structure", which means that even if any member of the
structure fails it cannot disintegrate. The source said that the
repairs were accordingly carried out but even then the bulk-head
ruptured on May 25.

During examination conducted through x-rays after the accident, the
corrosion was found on the inner ring i.e. lower surface under
cleat, which cannot be seen by the naked eye. The source insisted
that it was a structural fault of the bulk-head but the
organization was trying to shift the blame on the engineering
section. He said that first the director engineering was sacked and
later two engineers were suspended for a fault which was entirely

"When it is a fail-safe part, how could the engineering department
be accused of negligence," the source asked adding that the
manufacturer of the part was responsible for the fault and these
parts needed to be changed in all the A-300 Airbus aircraft in the
PIA fleet. He said that a similar problem was found in two other.

15 feared dead in massive landslide
By Mohammed Riaz and Rashid Javed

PESHAWAR/ABBOTABAD, July 10: At least 15 people were feared dead
and six others injured after a massive landslide destroyed the
Kaghan-Naran Road, blocking the River Kunhar. Six vehicles were
reportedly buried after a big chunk of a mountain in Chitta Katha
fell on them.

The Frontier Works Organization has declared an emergency in the
area and its workers were busy in the rescue operation till our
going to press.

It started evacuation of villagers from the Chitta Katha village
after the river water entered the village. At least two- kilometre
area around the river and the main Kaghan-Naran Road has come under
water because of the blocking of the river flow by the landslip.

According to APP the Kaghan police officials fear that more than 15
people have been killed in the accident. "We have rescued seven
critically injured people from the site of the incident," the
officials said.

Over 2,000 tourists stranded in Naran rescued
By Intikhab Amir

NARAN, July 12: Over 2000 tourists made their way out safely from
Naran during the last two days, according to civil and military
officials here. They told Dawn that the exact number of those who
died after the mudslide at Chita Katha near here was still unknown.

"Presently, efforts are being made to rescue the tourists stranded
at Naran," said Major Naveed of the Corps of Engineering presently
posted at Frontier Works Organisation (FWO).

A total of 13 vehicles were missing as per reports with the Kaghan
police station, an official said. "Except for two persons all those
traveling in the missing vehicles escaped narrowly," said an
official of the FWO.

According to FWO officials, the mud slide has spread over a one
kilometre radius and piled upto 15 feet in height. The road to
Naran from Chita Katha has yet not been opened to traffic. The flow
of river Kunhar was now normal except that the stream had slightly
eroded land on its left bank.

Rescue operations through choppers were cancelled. Kaghan police
officials said air-lifting of stranded sick and tourists was not
possible due to bad weather.

Senior FWO officials said air-lifting was cancelled on the
presumption that it might create unrest among the stranded
tourists. Some of the tourists, talking to Dawn said that
airlifting was only meant to rescue family of a senior officer - a
point which was rejected by Major Kiyani of Corps of Engineering.

According to eye-witnesses several people got buried under the
debris. However officials of different agencies has no idea about
the number of victims. Power supply to Naran was yet awaited as
work was continuing on the WAPDA transmission line.

Mohammad Ali's condition improves
Special Correspondent

LAHORE, July 11: The condition of veteran film star Mohammad Ali
further improved at the intensive care unit of Sheikh Zayed

He underwent a major operation after a massive abdominal
haemorrhage. He was kept in the hospital's intensive care unit for
two days.

Doctors attending him have expressed satisfaction over the
improvement. They say Ali is almost out of danger now. However, the
64-year-old film luminary of yesteryear is being kept under strict

Salamat Ali Khan is dead
Special Correspondent

LAHORE, July 11: Eminent vocalist of the subcontinent, Ustad
Salamat Ali Khan is dead. He was 70.

The great exponent of classical music, who was conferred Sitara-i-
Imtiaz for his services to this discipline of performing arts, had
been suffering from a host of diseases.

He leaves behind his widow, four sons and four daughters and a
large number of his fans.

Qateel Shifai passes away
Special Correspondent

LAHORE, July 11: Qateel Shifai, a great lyricist of the
subcontinent, died. The 82-year-old poet was in Sheikh Zayed
Hospital's intensive care unit for many days without much
improvement in his condition. He had suffered paralysis and a

Sindh govt authorized to privatize Lakhra
By Khaleeq Kiani

ISLAMABAD, July 8: The President Gen Pervez Musharraf has
authorized the Sindh government to privatize the 150-MW Lakhra
Power plant and has constituted a committee to monitor the

Official sources told Dawn that the committee comprised Sindh
Finance Minister Dr Hafeez Sheikh, secretary of Privatisation
Commission and officials of the Sindh Coal Authority and Provincial
Privatization Commission.

Meanwhile, the Privatization Commission has complained that WAPDA
has not identified two distribution and generation companies for
privatization despite an agreement on June 20 this year. To date
WAPDA has offered only one of the three power plants of Jamshoro
Power Company Limited (GENCO-1) for privatization which is 150MW
coal-fired Lakhra Power Plant (LPP).

�The LPP is small in size, suffers from low efficiency, low
availability with reduced overall capacity of the power plant to
approximately 25 per cent its total capacity", said Secretary of
Privatization Commission Zafar Ali Khan in a position paper to the
Chief Executive Secretariat and the Finance Ministry.

"WAPDA confirmed in the federal steering committee meeting for
monitoring the financial restructuring and privatization of the
KESC held on 20 June 2001 in the finance division that now it
agrees to the privatization of one GENCO. WAPDA has not identified
the GENCO to be privatized," said the secretary of the
Privatization Commission.

The secretary said that privatization plan of Faisalabad Electric
Supply Company (Fesco), the likely DISCO for privatization,
included strategic sale of 26 per cent equity interest with
management control to a strategic buyer. The secretary however
forgot that WAPDA retook the management of a generation company
(Kot Addu Power Company) with 36 per cent shareholding of the
private sector.

The Privatization Commission was of the view that the sale of LPP
in isolation of the remaining power plants of GENCO-1 was a
difficult transaction due to its relatively small size, coal-based
technology, low efficiency, low availability and other operational

The transaction if initiated was unlikely to be successful.

$10.1bn export target in new trade policy
By Khaleeq Kiani

ISLAMABAD, July 9: Pakistan's new trade policy has been announced
which seeks to achieve a conservative export target of $10.1
billion and contain imports at $11 billion during fiscal 2001-2002.

The policy also offered incentives and rewards for exporters to
diversify products and markets with main focus on South America and
Eastern Europe. The import target was set at the same level of last
year while export target was nudged up by $100 million to $10.1
billion from last year's $10 billion.

The minister for commerce and industries Razzaq Dawood admitted
that poor export performance last year was due to the "inability to
create export culture and overall investor-friendly environment"
besides drought and unfavourable exchange rate.

The main thrust of the trade policy is to reduce the anti- export
bias and lower the maximum tariff to 25 per cent from 30 per cent
and pursue the demand-led strategy to get a greater market share in
major products like textiles, leathers and rice.

The development of sectors like fisheries, fruit and vegetables,
gem and jewellry will continue but greater focus would be diverted
on engineering, chemical and ceramics in view of tariff reforms.

The exporters with at least 10 per cent growth over last year's
exports would be allowed to retain 50 percent of additional exports
in their local foreign currency accounts to use it for the purchase
of machinery,  equipment, raw material and payment of commission
and promotional expenses.

The subsidy on export finance has been withdrawn as part of
commitment with the IMF and interest rates linked to Market-based
Treasury Bills (MTB). A kind of an "open line of credit" would
enable the banks to get SBP to reimburse the credit extended to
exporters without the restriction of deposit ration requirement.

A pre-shipment export finance guarantee scheme would be separately
announced on July 16 to facilitate SMEs to access bank financing
for working capital. A new private sector "Pakistan Export Finance
Guarantee Agency (PEFGA)" would process the finalizing arrangements
with international credit insurers to provide post-shipment cover.

A $150 million foreign currency export finance facility (FCEF) will
enable the exporters to meet their import requirements by borrowing
at LIBOR 2 per cent (plus or minus) to be repaid from export

The political risk guarantee (PRG), to be launched later this
month, seeks to convert Pakistan's triple C country risk into
triple A risk. The facility will effectively transfer key Pakistan
country risk into Asian Development Bank risk to keep Pakistan's
country limits open for international banks confirming import L/Cs.
This covers inconvertibility, debt moratorium, change of law,
expropriation and political violence.

The government has decided to expand the zero rating of dollar
exports to Afghanistan on safety matches, furniture, water storage
tanks, tobacco leaf, gur, agricultural machinery, leather
manufacturers and footwear and confectionery items.

A deregulation committee comprising representatives of relevant
ministries and provinces has been constituted to review commercial
regulations and laws constraining competition and imposing high and
unnecessary compliance costs.

The committee would also suggest measures to reduce public- private
interface to a minimum and remove entry barriers.

For the export of entire range of services, following facilities
would be provided: (i) Retention from export proceeds for
commission etc at the rate of 35 per cent (ii) Permission to export
equipment without a bank guarantee and its free re-import upon
conclusion of contract (iii) Facilities from banks for bonds,
performance guarantees and advance payments. Financial,
architectural, educational, engineering, construction and technical
services are expected to benefit from this.

A new Emerging Electronics Products Assembly Scheme (EEPAS) has
been introduced for the assembling of mobile phones, cassette
players, electronic calculators and DVD players etc. This would be
an ongoing scheme and shall have no deletion program for the next 5

CKD kits would attract customs duty of 5 per cent and EDB and CBR
would work together with stakeholders for necessary survey reports.

IMF okays third tranche of $131m
By Tahir Mirza

WASHINGTON, July 12: Pakistan got through another hurdle when the
executive board of the International Monetary Fund completed its
second review under the country's standby arrangement, a process
that will allow Islamabad to draw a further SDR 105 million (about

This is the third tranche sanctioned for Pakistan, which has so far
drawn SDR 255 million (about $324.6m) under the standby
arrangement, approved on Nov 29 last year.

The IMF move comes in the wake of the approval of a structural
adjustment credit of $350 million approved by the World Bank last

The IMF board also approved waivers for performance criteria on tax
revenue collection and the elimination of interest subsidy element
of the export finance scheme under the arrangement.

Pakistan embassy spokesmen greeted the IMF approval as indicative
of better implementation of the country's program to get out of
both its external and internal economic and fiscal problems. It
should help in facing the debt overhang, in the program to
eradicate poverty and in regulating macro-economic instability, all
three being inter-related.

IMF managing director Horst Kohler pointed out after the board
meeting that Pakistan's further progress with structural reform
would be necessary for attracting private investment, achieving
higher growth and alleviating poverty.

On the fiscal side, he underlined the need for broadening the tax
base, strengthening the tax administration, and reforming the civil
service, tasks which Mr Kohler was quoted as saying in a press
release were of particular importance.

He said financial markets would need to be integrated, the
financial position of public enterprises improved, international
trade liberalized and privatization accelerated, all of which have
now become integral to IMF conditionalities.

The Asian Development Bank and the World Bank are to consider
adjustment loans in support of Pakistan's structural reforms, and a
meeting of the Paris Club is due to be held in January for
rescheduling both the country's accumulated debt arrears and its
debt-servicing liability to the club's creditors.

Following the IMF board's discussion on Wednesday, Mr Eduardo
Aninat, deputy managing director and acting chairman, issued the
following statement, which seems on the whole to reflect the
Pakistan government's explanations of its fiscal and economic

Pakistan's achievements under the (restructuring) program supported
by the Stand-By Arrangement have been encouraging. The authorities
have made a determined effort to implement the program, and most of
the program targets have been achieved. Inflation has been better
than expected, and the budget deficit remains in line with program
assumptions. Economic activity was somewhat lower than expected
because of severe drought, and this has contributed to lower-than-
expected tax revenues and a weaker external balance. The
implementation of important structural reforms has been well on

To consolidate these achievements and build a solid foundation for
sustainable high growth over the medium term, the authorities will
need to pursue further macro-economic adjustment and structural
reform. The key challenge will be to implement the recently
announced 2001/02 budget. The budget includes a package of direct
and indirect tax reforms that will broaden the tax base, reduce
distortions, strengthen incentives for investment, and reduce
governance problems inherent to the current system. Together with
planned improvements of tax administration, these reforms will help
to boost collections, a key precondition for containing the fiscal
deficit while increasing social and development spending.

Another key challenge will be to achieve the targets for foreign
exchange reserves, which will require good coordination of monetary
and exchange rate policies and further progress toward a genuinely
market-based exchange rate policy.

Other reform priorities are to further improve governance in the
management of public resources and the ongoing restructuring of
public enterprises, and to strengthen the soundness of the
financial system.

NDFC insolvent, says WB report
Staff Reporter

ISLAMABAD, July 8: The World Bank has termed National Development
Finance Corporation (NDFC) "capturer" of the multi-million-dollar
Long Term Credit Fund (LTCF) and a future risk to administer fund
flows in view of its "insolvent state".

In a report submitted to the federal government and NDFC, the Bank
said, "NDFC's ability to continue to administer the Fund is tied to
its own future, which is in question given its insolvent state. It
is unclear that the NDFC would be in a position to remit funds held
on deposit on behalf of LTCF without liquidity assistance from the
State Bank of Pakistan."

Presenting a depressed analysis of the NDFC's role as a fund
administrator, the bank has recommended the government to replace
the NDFC as the administrator, given its inability to effectively
manage the Fund and to put in place an interim arrangement to
monitor the current portfolio of assets.

"Unfortunately, the government has not yet made suitable
arrangements to safeguard the assets of the fund or address its

Following the loss of confidence by private investors in Pakistan,
the Bank (World Bank) has agreed with the GOP that spinning off the
LTCF as a separate financial institution was no longer warranted as
both the NDFC and the GOP had failed to act on the establishment of
the LTCF as an autonomous and commercially-oriented institution.
"However, concern remain about how surpluses generated by the Fund
and reflows from debt service payments by the IPPs will be used by
GOP", said the report.

$150 million loan expected from ADB
By Ihtashamul Haque

ISLAMABAD, July 11: The Asian Development Bank is expected to offer
$150 million to help improve Pakistan's legal system that aims at
benefiting the common man.

A four-member ADB fact finding mission for the proposed $150
million Access to Justice Program Loan (previously called legal and
judicial reforms) has completed its deliberations on July 10 by
meeting the high officials including Secretary General Ministry of
Finance Moeen Afzal.

During its stay, the mission visited all the four provinces and
held extensive discussions with high-level officials of the federal
and provincial governments, as well as with members of the
judiciary, the donor community, and other stockholders.

The overall development objective of the proposed Access to Justice
Program Loan is to improve access to justice so as to (i) provide
security and justice to the citizens, particularly the poor, (ii)
strengthen legitimacy of state institutions and (iii) create
conditions for revival of growth by fostering confidence of

The following five major outcomes are expected by the ADB:

1. Enactment of laws and regulations, consistent with the
constitution, to carry out reform policies for the judiciary,
police and decentralized administration. These include laws for
freedom of information, consumer protection, and accountability of
public servants and government officials, as well as the Local
Government Ordinance 2001 and the Police Ordinance 2001.

2. Greater efficiency, timeliness and effectiveness in judicial,
police and administrative services. Measures include improved
records and information management linking courts, prisons, and
police facilitation fair and expeditious justice, and
implementation of small causes courts, and amendments to Family
Court Act.

3. Greater equity and accessibility of judicial, police and
administrative services for vulnerable poor. Some steps in this
regard could be the publication of laws in Urdu, functioning on
conciliation at the district level, and the establishment of a
legal empowerment fund to encourage representation of justice
interests of the vulnerable poor.

4. Improved predictability and consistency between fiscal and human
resource allocation and requirements of reformed judicial, police,
and administration institutions. This would involve the approval a
judicial sector medium-term budget and expenditure framework to
provide a more predictable and increasing fiscal and human
resourcing for the sector.

5. Greater transparency and accountability in performance of
judiciary, police and administration. Steps include the publication
of annual performance reports by the federal and provincial high
courts, and establishment and proper resourcing of the public
safety commissions at national, provincial and district levels.

Further work on this loan would be conducted during the latter half
of August with the fielding of the appraisal Mission by the ADB.

Accord signed with WB

ISLAMABAD, July 13: Pakistan and the World Bank signed a Japanese
Grant Funds Agreement amounting to $515,769.

Secretary Economic Affairs Division Nawaid Ahsan and the World Bank
Country Director for Pakistan and Afghanistan John W.Wall signed
the agreement.

The Japanese Ambassador to Pakistan, Saddaki Numata, was also
present on the occasion. He spoke about the importance of
supporting under-privileged women in the development efforts of

The grant has been provided out of Japan's Social Development Fund
(JSDF), which was formally launched by the Japanese government and
the World Bank in June 2000.-APP

11th EoI for PTCL sell-off received

KARACHI, July 13: Turkish firm Fintur Holding BV Ltd joined 10
other investors interested in taking a 26 per cent stake in state-
run Pakistan Telecommunication Company Ltd (PTCL), officials said.

"It was in the pipeline... in all now 11 firms have submitted their
EoIs," a senior official of Privatization Commission told Reuters
from Islamabad.

The commission has now also accepted the EoI of the Turkish firm,
officials said.

The investors that had shown interest included three from the
United States - Align Technologies, Crescent Investment Management
LLC and Khanjee Holding Incorporated - and Australia's Queste

Others were Egypt's Orascom Telecom, Saudi Oger Limited of Saudi
Arabia, Nahayan Mabarak Al-Nahyan Abu Dhabi Group of the United
Arab Emirates, Kuwait's Yousif S.F. Al Sabah, and Commercial Nework
Ltd and Pakbell-Pacetel (Pvt) Ltd of Pakistan.

Although the government would retain a majority stake, the
strategic investors would have management control.-Reuters

Weekend profit-selling pushes index down by 7 points
Staff Reporter

KARACHI, July 13: Stocks failed to extend overnight recovery as
weekend profit-selling by jobbers and short-term dealers clipped
most of the gains netted during the last two sessions, pushing the
KSE 100-share index down by 7.73 points at 1,312.11 points.

The market appears to be not that optimistic about the success of
the Agra parleys, says a leading broker. "It should have given a
hearty send off to the president after demonstrating its inherent
strength, a right occasion to react that way." However, the
activity on the forward counter was fairly brisk where PSO came in
for massive speculative support and encountered two consecutive
bullish hella, the final closing being Rs.3.75 higher at Rs.130.00,
which incidentally was the day's highest bid.

Leading investors seem to be progressively opting for futures
trading as the increasing volumes in Hub Power and PSO indicate.
PSO being in an oversold position because of early week sell-off
may, to a certain extent, justify the current run-up, others may
not, stock analyst at the WE Financial say. "But it appears to be
the work of leading institutional traders who have both the
liquidity and manoeuvring leverage to play speculative games
forbidden and no go area to the have-nots," he said.

Stock analysts at the Finex Securities say the tempo of speculative
trading building up on the futures options will certainly spill
over the ready counter causing sympathetic price flare-ups as it
did in PSO on Friday. However, the market weekend sell-off was not
in line with market's general perceptions as leading brokers were
expecting the extension of the last two sessions' run-up.

"The market should have given a hearty send off to the president
when he takes off tomorrow for summit talks with the Indian prime
minister to secure peace and resolution of the Kashmir dispute,"
most brokers, commenting on the market's relatively weak
performance, said. But some others said leading investors are
making larger commitments on the forward counters rather than
taking a big stake in ready apparently awaiting the outcome of Agra

Trading volume was around the overnight level of 66 shares but
losers held a strong lead over the gainers at 91 to 53, with 46
shares holding on to the last levels.

PSO again actively traded, sharply higher by Rs.4.15 at Rs.130.00
on 23 shares followed by Hub Power, off 25 paisa at Rs.17.75 on 20m
shares, PTCL, lower 20 paisa at Rs.16.80 on 10m shares, Engro
Chemical, easy five paisa at Rs.53.60 on 2.329m shares and FFC-
Jordan Fertilizer, lower five paisa on 1.851m shares.

Back to the top
Twenty years to zero
By Ardeshir Cowasjee

Following my column of June 17 'Give him a fighting chance' and
subsequent columns in which I complimented General Pervez Musharraf
I have been under verbal fire from my friends, acquaintances and
from known and unknown web surfers via e-mail.

Why am I supporting a military man? was the grouse expressed. My
simple answer is that I would support anyone, in or out of uniform,
who makes an effort to live in peace and to coexist with Big
Brother India. One friend who fired a verbal rocket is self-
appointed goodwill ambassador of Uzbekistan to Pakistan Haji
Mohammad Aziz Alex Haji Dossa, another my evergreen friend,
perennial politician Ilahi Bakhsh Soomro.

Alex was very angry. He sent me a letter accusing me of being a
'lifafa' journalist and of having accepted an envelope from
Musharraf. So I called him over to share with me the contents of
the envelope in question. Needless to say, he was apologetic
explaining that he had been overcome by the heat of the moment.

He was most distraught over another matter and asked if I had read
his letter in Dawn on July 1, 'Killing of a doctor', which indeed I
had. According to statistics maintained by the Pakistan Medical
Association, of the 64 doctors who have been murdered in Karachi
since 1995, 59 were killed merely because they happened to be
Shias. Four of these Shias, Doctors Mohammed Hussain Dhevjani,
Abdul Kassim Jiva, Sibtain Dossa, and Mahomad Raza Pirani, were
Alex's friends.

Pirani was gunned down on June 26 in the midst of busy Soldier
Bazaar. Alex had just condoled with Pirani's pregnant widow and
four children. He asked, "Why don't you ask your friend Musharraf
to find the assassins rather than allowing them to cross our
northern border and join their friends the Taliban ?" With sad eyes
he watched my sad-eyed English Basset hound, Humphrey Hasdrubal, my
Virginian Jack Russell terrier Bopp, his New York mate Billie, my
Australian sulphur crested cockatoo, Sardar Benjamin, and my Bath
Island cats Tessa and Tobie, all romping around together and
drinking water from the same bowl. They are from four different
continents but all have been brought up in Pakistan. They are
intelligent and tolerant. They have no Sunni-Shia Deobandi-Barelvi
problems. Aziz left with the hope one day in this country Shias and
Sunnis will be able to learn to live together in harmony, each
respecting the other's beliefs, differing but not killing.

Ilahi Bakhsh attacked me in his chaste Sindhi accent, "How can you
support an unelected army man?" "Can beggars be choosers?", I
asked. "Look at what we have on the ground as leaders. On the one
side is the extremely corrupt Benazir with her even more corrupt
husband, the remnants of Nawaz's PML who call themselves the like-
minded lot abandoned by the corrupt but still hopeful aspiring
Ameer-ul-momeneen, and the obscenely corrupt Chaudhrys. On the
other, we have Musharraf and his medals and the baggage he carries
with him. Which would you have?" Without hesitation, he said, "The
last option." "So, then, what are we arguing about?", I asked,
"What are we waiting for? A 'farishta' from heaven riding a white
charger?" All he could do was to hum and hah.

An irate young Parsi woman, after reading my column 'Dastur-an-
Dastur', launched another attack on me for being wrong in my title.
She maintained that Dr Narriman Maneckji Dhalla was not a 'dastur-
an-dastur' (a high priest of high priests) and the only 'dastur-an-
dastur' we Zoroastrians of the sub-continent have had was Dasturji
Meherji Rana (1510-1591). I asked her had she ever met Dastur
Dhalla to confirm from him whether he was or was not a 'dastur-an-
dastur'. Of course she had not. She was barely born when he died.
Had she asked him, he would have told her it mattered not a whit.

The Moghul Emperor, Akbar, was wont to hold discussions on religion
with the priests and scholars of the different religions in India.
Meherji Rana, the most learned Zoroastrian priest of the time, was
invited to Akbar's court to participate in one of these sessions
and Akbar was so impressed by Rana and his clarity of expression
that he made him a permanent member of his court. History records
that Emperor Akbar summoned to his court crowds of learned men from
all nations, and sages of various religions and sects, all of whom
were honoured with private conversations. According to Akbar, "The
superiority of man rests on the jewel of reason." He invited
representatives of all the religions in his Empire to a conference,
pledged them peace and issued edicts of toleration for each cult
and creed. As evidence of his own neutrality he married wives from
the Brahmin, Buddhist faiths as well as from his own faith. The
Emperor took no stock in 'other-worldliness' and accepted only that
which could justify itself with science and philosophy.

A tale is told of Akbar and Meherji Rana. Rana had his own chair,
reserved for him at the Emperor's darbar. A time came when at
several successive darbars Akbar noticed that Rana's chair was
vacant. Worried that he may have hurt his feelings in some way, he
sent for Rana. He asked him if he had somehow upset him. Rana said,
'no, of course not, you have done nothing. But I am tired of
sitting and listening to flatterers and their non-stop flattery'.
Akbar accepted his reason, and asked if there were anything he
could do for him. 'There is one thing', said Rana, 'just one thing.
Send for me every six months or so, summon me before your full
court, ask me to approach you and then whisper in my ear. Any old
nonsense will do, just as long as everyone notices you are
confiding in me. Just that will ensure that I will remain
unhindered and live in peace and comfort.'

Now we jump five centuries. Musharraf heads a country, the woes and
ills and setbacks of which he cannot cure. It will need at least 20
years of strife-free existence under good leadership for the
country to return to zero point. His sincerity is not in doubt. He
is now making an effort to coexist with India, to live with it
rather than against it. He is going to meet a man who was born on
the same day as the official birthdays of Issa of Nazareth and of
Mohammad Ali Jinnah of Pakistan, and possibly also of the exiled,
disgraced Nawaz Sharif.

If age brings with it wisdom, Atal Behari Vajpayee, who was born in
the Year of the Lord 1924, has a head start of 19 years over
Musharraf. Musharraf will talk to a man who describes his
profession as 'Journalist and Social Worker'. Vajpayee has been the
editor of the monthly magazine 'Rashtra-dharma', of the weekly
magazine 'Panchajanya' and of two daily newspapers, 'Swadesh' and
'Veer Arjun'. He has been elected eight times to the Lok Sabha, and
has been prime minister of his country twice. The first term was
from May 16, 1996, to May 31, 1996, during which few days he also
held the portfolios of external affairs, chemicals and fertilizers,
civil supplies, consumer affairs and public distribution, coal,
commerce, communications, environment and forests, food processing
industries, human resource development, labour, mines, non-
conventional energy sources, personnel, public grievances and
pensions, petroleum and natural gas, planning and programme
implementation, power, railways, rural areas and employment,
science and technology, steel, surface transport, textiles, water
resources, atomic energy, electronics, Jammu and Kashmir affairs,
ocean development, space, outer space and beyond.

>From 1996 to 1997 Vajpayee was leader of the opposition in the Lok
Sabha and as of March 19, 1998, has again been prime minister.

Commando-Gunner Pervez Musharraf is our president, our chief of
army staff, chairman of the joint chiefs of staff committee, and
the country's chief executive. He started professional life in a
military academy and has reached the summit of his career.

Both men are sincere in their quest for peace. The sun does not
rise and set in Kashmir alone. We must all wish them success.

A fresh line in cosmetics
By Ayaz Amir

If a college of cynics, duly certified as a professional body by
its examiners, had been charged with the task to write a primer on
how not to prepare for a summit, it could not have bettered the
script followed by General Musharraf and his team of advisers.

Everyone and his uncle have been called for consultations with
General Musharraf. There in the mock-ornate setting of the Prime
Minister's House (which Pakistan's supreme ruler uses for his
office) Pakistan Television's captive audience has been treated
evening after evening to shots of the general listening serious-
eyed to his various callers regarding the line to take in the
summit with Mr Vajpayee. In the last few days no one could have
been more free with press and TV interviews than the general. Is he
hoping to conquer Agra with this media blitz? Are we getting ready
for a circus or a serious round of talks?

Talking endlessly about the core issue is fine for a domestic
audience. But it is doubtful whether it can have much effect on
India. In any case, it doesn't hurt to keep things in perspective.
Can we make the ground shift from under Mr Vajpayee's feet? What
leverage have we at our disposal to make India share our
perceptions on Kashmir? To suppose even for a foolish moment that
any serious plans about settling the Kashmir issue will be floated
in Agra--Chenab formula or whatever--is to live in a wonderland of
our own creation.

On offer at Agra will be a new range of cosmetics, or rather an old
line of cosmetics wrapped in fresh paper: trade, travel, easing of
visa restrictions, and the like. In other words, makeup or, at
best, plastic surgery. No more. Not that in displaying this range
India would be guilty of any particular deviousness. There is
little we can do to change its marketing strategy.

Yes, India would like militancy to die down in Kashmir. Yes, a
Kashmir on the boil hinders India's march to great power status.
Even so, we don't exactly have India on the mat. As such we cannot
wring from it any major concession. This is not rocket science but
simple common sense. If Gen Musharraf's planners are choosing to
see it in a different light that's their problem.

Ladies of fashion or beauty who are used to attention take
compliments (and even passes) in their stride. In response to the
Vajpayee invitation the Musharraf government has simply gone
overboard. Its tremulous state of excitement has been evident in
the build-up to the summit--a build-up out of sync with what is on
offer. If the mood in the Chief Executive's office had been a
trifle more restrained, expectations could have been pitched low,
in which case even old perfume in new bottles could have counted as
an achievement. With expectations pitched unrealistically high, the
danger is that a sense of frustration and disillusionment could set
in if no tangible progress is made on Kashmir.

It is no good saying amidst the hoopla and noise that we expect
nothing dramatic from the summit. The build-up itself, and the CE's
relentless consultations and interviews, tell a different story. Mr
Abdul Sattar will have a job on his hands once the pageantry is
over. Having to look serious (not a difficult task for him) he will
have to read deep and portentous meaning into the slim offerings at
Agra. Unless of course the talks are to be blasted as a failure and
India accused of intransigence. Which is unlikely, given the
overall climate which is not conducive to such histrionics.

Not that India-Pakistan relations do not stand in need of a
facelift. They do indeed. We need more trade and travel and other
forms of exchange to lower the barriers of hostility and mistrust
between us. But while doing so, and making the best of a bad job,
there is no need to fool ourselves. While we have a position on
Kashmir-- and perish the thought we should ever abandon it--we lack
the means to change the status quo to our advantage. Nor is it
likely that India will give away on the negotiating table what we
have failed to wrest from it on the battlefield.

That Kashmir is disputed territory, its disputed status
underwritten by UN resolutions, is not something writ on water but
a fact carved in stone. If the people of Kashmir do not want to
have any truck with India, or if they want to strike out on their
own, who are we to sell them down the river? But at the same time
no discernible purpose is served by remaining locked in a state of
permanent hostility with India.

For our sake, if not India's, we need to come out of the mental
trenches of the past. Trade will benefit both countries and perhaps
Pakistan more than India. And reducing the burden of militarization
will allow scarce resources to be put to more productive uses. That
is, if on both sides of the divide, the national security
establishments which have a vested interest in the continuation of
hostility permit such an outcome to emerge. Look at the
subcontinent's poverty and then consider the pretensions on parade.
The two things are a world apart.

A thousand hard-liners, however, from the comfort of their
armchairs can be heard declaiming that peace and cooperation with
India while the Kashmir dispute remains unresolved is an
unthinkable proposition. Why? China's unalterable claim to Taiwan
does not stop it from having profitable links with Taiwan. Just as
Hong Kong's being a British colony did not prevent China from
having extensive contacts with it. Japan has never given up its
claim to the four Northern Islands captured by Soviet troops at the
end of the Second World War but that does not stop it from engaging
with Russia in other spheres. Why can't we be similarly pragmatic?
Why should sensible relations with India be considered tantamount
to the loss of national manhood?

Let us overcome our internal problems, let us attain political
stability and build a strong Pakistan. Let us trade with India and
try to reduce our absurd arms expenditure. And at the same time let
us remain faithful to our position on Kashmir. These three aims are
not contradictory. Statesmanship lies not in playing zero-sum games
(either/or) but in relating national goals to national strength.

Such a definition of statesmanship, however, flows from a calm way
of looking at things. The circus atmosphere allowed to grow around
the Musharraf visit is the exact opposite of this mood. What we are
expecting from India regarding Kashmir is related more to our
wishes than to the facts on the ground. When India does not accede
to our wishfulness will we relapse into sullenness or seek refuge
in false interpretations?

But caveats apart, let us count our blessings. The momentum
generated by this visit is all for the good for even fanfare and
empty pageantry have their uses. After this visit, even if nothing
else is achieved, it will not be easy for either side to revert
that quickly to the rhetoric of the past.

Meanwhile, an important point worth remembering is about the peace
clothes General Musharraf is wearing to India. They represent an
enduring and not a passing phenomenon. Musharraf's foremost
priority is consolidating his rule and giving it a democratic face-
lift, plastic surgery being the rage in Pakistan as much as in
India. For achieving this aim he has to be more politician than

Small wonder then if from the various corps headquarters right down
to monitoring teams in the districts an intense effort is underway
to choose the right kind of district nazims for the August 2
election. There is nothing surreptitious about this process.
Generals and brigadiers are openly telling candidates as to who is
on board and who is not. General Musharraf has promised to devolve
power to the grassroots. Whether this promise is kept or not,
grassroots interference by the army of the kind now being seen is a
first for Pakistan.

This is democracy army-style and the sounds it is conveying are the
birth pangs of a new Convention League to act as civilian
handmaiden to another military strongman. It is for outsiders--
those who accuse Pakistan of adventurism-- to draw their own
conclusions. With the army leadership engaged in these political
manoeuvres, it should be obvious to anyone that the army's agenda
is peace not war. There can be no better augury for the Agra

The spirit of Southall
By Irfan Husain

Visiting London at a time when race riots are rife, and the
newspapers are still referring darkly to pitch invasions by
supporters of the Pakistani cricket team, it was natural to expect
a certain amount of tension in racially mixed areas.

So it was a pleasant surprise to go to Southall, the ultimate
example of a South Asian-dominated suburb. I was there last twenty
years ago when friends took us for a desi dinner. With its loud
filmi music, its almost exclusively subcontinental faces and
accents, and its spicy aromas, I understood why my son Shakir, then
five years old, asked if we were back in Lahore. Since then, I have
not been tempted to return for the reason so many Indians and
Pakistanis go there: authentic desi food. On my short visits to
London, I prefer to check out the latest Italian and French

But as it's the mango season and the only mangoes I have found in
Kensington are inferior African and Mexican varieties, I thought we
would get the genuine articles from Southall. So off we went on a
warm Sunday mid-morning, following signs until we reached a bazaar
scene straight out of the subcontinent. The vibrant colours, the
loud music and the unique, mouth-watering smells of curries cooking
were light years away from the bland, strait-laced British streets
one normally walks through. In terms of atmosphere, I might easily
have been in Karachi's Saddar area, or Lahore's old city.

However, the contrasts with the subcontinent soon became apparent:
the streets, despite the crowds and the cacophony, were very clean;
there were no beggars; and, above all, there were at least as many
women as there were men, and nobody ogled them or made obnoxious
remarks. There was very little swagger or male macho on display.
People shopped, ate at the many restaurants and generally went
about their business without pushing, shoving or being unpleasant
in any way.

Another major difference was the presence of so many communities in
a relatively small area. There were Sikhs, Hindus and Muslims
shopping peacefully side by side; there were even a few token white
and black Brits. Nobody was hassling anybody as we made our way up
the main street. The shops carried signs with names indicative of
all the faiths practised in South Asia, and impartially drew
customers from every region.

To complete this picture of ethnic diversity, there was even a
(Halal) Chinese menu at the Punjab Karahi Centre we entered for
lunch. I thought we had been very clever by bringing a couple of
cans of beer with us, but when I asked the waiter if we could open
them, he whispered he would move us to a corner table if we were
under a 'compulsion to have a drink. I assured him there was no
such 'compulsion', and got on with the business of ordering lunch.
The nihari, the saag-gosht and the kebabs were all absolutely
authentic, as was the lassi.

Outside the Punjab Karahi Centre stood a splendid Karachi bus
decked out in bright colours and mythical beasts and shiny metal
bits. passers-by gaped at it, and has themselves photographed
standing next to this fine example of Pakistani folk art. The
manager informed me that it had been driven to Turkey and shipped
from there; it was used to transport baraats at weddings and was
often hired for birthday parties. We next bought a couple of kilos
each of excellent chausa and sindhri mangoes for 10 pounds - hardly
extravagant when considering their quality and transport costs.
Finally, we bought some superb gulab jamans and gajar ka halwa from
the Ambala Sweet House.

On our way home, we talked about how a microcosm of the best of the
subcontinent had been so successfully created thousands of miles
away. For centuries, serious travellers and casual tourists have
remarked on the marvellous cultural mosaic that invasions,
conquests and migrations have created in South Asia. The ethnic mix
there is probably richer and more varied than in any comparable
land mass, and apart from occasional religious and language riots
triggered by chauvinistic individuals and parties, the different
elements of the subcontinental mosaic have lived in relative peace
and harmony.

This balance was disturbed by the system of separate electorates
for Hindus and Muslims introduced by the British nearly a century
ago, and this policy found its logical conclusion in the partition
of 1947. Since then, the forces of intolerance and chauvinism have
gained ground in both India and Pakistan. They are far stronger in
Pakistan as the latter was created in the name of religion, and
despite the early secularizing influence of Mr Jinnah, its founding
father, it has gone down the path of fundamentalism and enforced

We have thus robbed ourselves of the happy medley of cultures and
influences that enriched and informed our lives until not very long
ago. By trying to impose a rigidly uniform vision of Islam and an
alien Middle Eastern culture on a basically multi- religious,
multi-ethnic South Asian society, we have destroyed many of the
threads that made up the fabric of a once-rich, vibrant and
creative culture. More and more, we define ourselves by our "un-
Indianess", and in doing so, we hack away at our cultural roots.

And yet as my brief visit to Southall showed me, there is no
fundamental problem in South Asians of different faiths living,
working and praying next to each other. Whether our political and
religious leaders like it or not, the commonalties between the
various communities of South Asia far outnumber the differences.
Unfortunately, over five decades of politically generated hostility
and poisonous propaganda have taken their toll of tolerance and
understanding on both sides of the border. Two generations of
brainwashed Indians and Pakistanis have grown up to blindly
mistrust and even hate each other. Nevertheless, these same young
men and women become fast friends away from the corrosive passions
of the subcontinent.

Clearly, fifty-odd years of history cannot be forgotten or wished
away. But if these wasted years are to serve any purpose, we need
to draw lessons from them if we are not to be condemned to making
the same mistakes. The most important lesson is that it takes more
than an artificially drawn line across the map to obliterate our
rich cultural heritage.

The history of the subcontinent is one of religious conversions,
inter-faith marriages and inter-cultural mingling on a vast scale.
To pretend that any part of this region is religiously or
culturally 'pure' is to delude oneself. Finally, if South Asia is
to play its rightful role on the world stage, its leaders have to
remember there is great strength in diversity.

General Musharraf and Mr Vajpayee would do well to keep the
Southall model before them when they sit down to talk next week.

Pakistan crashes out from Asia Cup

KARACHI, July 12: Pakistan's dream of qualifying for next year's
World Cup were shattered when they crashed out of the inaugural
Pro-Am Asia Cup Snooker Tournament after losing both their league
matches to Hong Kong and Malaysia.

Third seed Pakistan defeated United Arab Emirates in the opening
match 4-3. But after leading 3-0 from Hong Kong in their second
league round they went down 4-3 after their opponents won the last
four matches at trot.

Hong Kong and Malaysia joined China and hosts Thailand in the semi
finals of the competition which also guarantee four countries a
place in next year's World Cup in England.-APP

Controversial Shoaib and Sohail face Australians

TAUNTON, July 12: Pakistan pace bowler Shoaib Akhtar and former
captain Aamir Sohail are to line up against Australia in their
three-day tour match against English county Somerset.

A spokesperson for Somerset said the pair had been recruited to
strengthen the side to ensure Australia were given a good match.

The four-day match with Somerset starts on Friday and is the
Australians' last game before the second Test against England
beginning at Lord's on July 19.-Reuters

Razzaq signs for Middlesex
Sports Reporter

KARACHI, July 11: Abdur Razzaq has signed a two-year contract with
the English county side Middlesex. Razzaq, who toured England with
the Pakistan squad recently, will play for the division two county
side in 2002 and 2003.

Middlesex coach John Emburey was delighted at Razzaq's signing for
the north London club.

"We were primarily looking for a strike bowler and Razzaq fits the
bill perfectly. He is a magnificent addition to our squad and the
club is very excited at obtaining his services for the next two
years," the former England off-spinner commented.

Razzaq, who bats and bowls right-handed, was also quite excited.
"Once I knew of their interest, Middlesex was the only place I
wanted to go. The prospect of playing at Lord's is a dream come

Hussain out of second Test

LONDON, July 9: England captain Nasser Hussain was ruled out for
three weeks with a broken finger, meaning he will miss the second
Ashes Test against Australia.

The news was confirmed after Hussain visited a specialist, England
physiotherapist Dean Conway said. Hussain fractured the little
finger of his left hand on Sunday while batting during England's
defeat by Australia in the first Test at Edgbaston.-Reuters

Pakistan Open squash in Lahore on portable court
Staff Reporter

ISLAMABAD, July 13: The Pakistan Squash Federation (PSF) has
decided to host this November's Pakistan Open at Lahore for which a
portable four-side glass wall court will be imported. Sqn Ldr.
Sajid Waheed, the new squash secretary said that the court would be
imported by the PSA while the federation would look after all the
technical aspects of the tournament.

The US $80,000 Pakistan Open is pencilled in for November 7 to 12
with the qualification rounds to be held on November 5 and 6.
Before the tournament was allotted to Lahore, either Karachi or
Islamabad were to host the tournament. But the Executive Committee
of the PSF which met in Rawalpindi unanimously decided to give the
hosting rights to Punjab.

The final trials to pick eight players from the group of 10 will be
conducted in Karachi in early September. Based on their
international ranking and their performance in the CAS
International Championship at Peshawar, Hong Kong Open and the CNS
International at Karachi and their standing in the trials the team
for the SAF Games and the World Team Championship will be selected.

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