------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 28 July 2001 Issue : 07/30 -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + Musharraf formally invites Vajpayee + India denies subversion by hard-liners + Hardliners thwarted peace bid, says Musharraf + Declaration was not far away, says Vajpayee + Vajpayee blames Musharraf for talks breakdown + Indian editor reveals Pakistan draft + LoC firing: Pakistan to retaliate, says Qureshi + No concern over Washington-Delhi ties, says Sattar + Pakistan to plead for lifting of US sanctions: Rocca due today + Democracy-related US sanctions likely to stay intact + Altaf puts stress on dialogue with India + Musharraf wrong in criticizing Simla accord, says PPP + Body on judicial reforms to be set up + Sikandar Hayat sworn in AJK PM + Rs250bn development projects to be launched next month + President to seek funds for 18 projects + Death toll in twin cities rises to 58 + Floods wash away Mansehra village + PIA regrets Russian action: Forced landing + Production of 300 Al-Khalid tanks planned + Taliban to set up camps for returning DPs + Election for Nazims in 84 districts on Aug 2 + PAF plane crashes + PSO chief shot dead in Karachi --------------------------------- BUSINESS & ECONOMY + Rs8bn cut in export rebate planned + Three-year plan to stabilize economy + Deficit declining: Shaukat + Pakistan to get $700m this year + WB likely to offer $300m loan: Restructuring banking sector + Pakistan to enact freedom of information law: ADB loan + $70 million ADB loan expected + Saudi Arabia offers $250m aid + Japan to give $32m for Kohat tunnel project + 21 EoIs received for 26% govt shares: UBL privatization + US power firm may pack up + PR seeks joint venture for telecom network + More PTCL bandwidth for Internet service + Mineral development body to be set up soon + Pakistan economy faces four risks + PSO MD murder stirs panic-selling on KSE --------------------------------------- EDITORIALS & FEATURES + So far so good Ardeshir Cowasjee + To what uses this eloquence? Ayaz Amir + The view from Harding's Point Irfan Husain ----------- SPORTS + Pakistan Veterans team for India announced + Azam, Haider, in top four + Pakistan make one change for Azlan Shah tournament
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010728 ------------------------------------------------------------------- Musharraf formally invites Vajpayee ------------------------------------------------------------------- By Nasir Malick ISLAMABAD, July 27: President Gen Pervez Musharraf formally invited Indian Prime Minister Atal Behari Vajpayee to visit Pakistan for second round of summit talks, a senior government official said. President Musharraf had extended verbal invitation to Mr Vajpayee during his recent three-day visit to India, which was accepted by the latter. The official said that the formal invitation was extended to Mr Vajpayee through a letter. "The letter was delivered by the Pakistan High Commissioner in India to the prime minister at 8:00pm India time," the official said. In reply to a question about the contents of the letter, the official said that the president had hoped that it would be possible for the Indian prime minister to visit Pakistan "sooner (rather) than later". The official said that in his letter President Musharraf had referred to the issue of Kashmir, and emphasized for its early solution. "The path to normalization of relations between India and Pakistan leads through Kashmir," the official quoted from the letter. He said Gen Musharraf thanked Mr Vajpayee for the hospitality extended to him, his wife and members of his delegation during their visit to New Delhi and Agra. "The President also lauded the excellent arrangements that were made by the Indian government during his visit," he said. Earlier, Pakistan had extended an invitation to Indian Foreign Minister Jaswant Singh to visit Pakistan. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- India denies subversion by hard-liners ------------------------------------------------------------------- By Jawed Naqvi NEW DELHI, July 26: Prime Minister Atal Behari Vajpayee denied claims by President Pervez Musharraf that hard-liners in the Indian delegation had subverted a breakthrough in Agra. "Efforts are being made to convey the impression that the Indian delegation in Agra or my government was divided over the issue of an agreement in Agra. This is not true," Vajpayee told. "All the members of my delegation were completely united in our discussions and in our approach in Agra. There is an attempt to suggest that there were hard-liners who obstructed the course. The question doesn't arise," Vajpyee said. His remarks came in obvious response to General Musharraf's claim on Wednesday that hard-liners torpedoed the talks in Agra. "The Indian delegation was of one opinion and there was no compromise on any vital issue. No one in my delegation could have ever accepted the idea of equating terrorists with freedom fighters. No one is there who would have ignored the question of cross-border terrorism," he said. "This kind of propaganda is undesirable. This will create problems in the future when we try to steer our talks again in the right direction." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Hardliners thwarted peace bid, says Musharraf ------------------------------------------------------------------- By Khaleeq Kiani ISLAMABAD, July 25: President Gen Pervez Musharraf has held Indian hard-liners responsible for thwarting peace process and non-signing of the Agra Declaration. The Indian hard-liners were not ready to give peace a chance and it was apparent that there was a split in their ranks, President General Pervez Musharraf told a cabinet meeting last week. Authentic cabinet sources told Dawn that the president informed the cabinet that Prime Minister Atal Behari Vajpaee and Foreign Minister Jaswant Singh were flexible in their approach. "Both sides had come close to signing the Agra Declaration but the Indians, particularly the hard-liners, were not ready to give peace a chance," the president was quoted as saying with the addition that "it was apparent that there was a split in their ranks". The prime minister of India definitely wanted the peace process to go on but the hard-liners thwarted the signing of declaration although eight items out of 9 had been agreed upon, he told the joint meeting of national security council and the federal cabinet. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010725 ------------------------------------------------------------------- Declaration was not far away, says Vajpayee ------------------------------------------------------------------- By Jawed Naqvi NEW DELHI, July 24: Indian Prime Minister Atal Behari Vajpayee told parliament that he was not too far away from signing a joint declaration with President Pervez Musharraf in Agra, and said he would strive vigorously to pursue peace and friendship with Pakistan. Mr Vajpayee's statement on the Agra Summit, made in both houses of parliament, sought reciprocity from Islamabad in taming the freedom struggle in Kashmir. Yet the remarks were seen in diplomatic quarters as a snub to the hawks in his ruling alliance, whose adventurist advice to him has ranged from threatening Pakistan with war to engaging Mujahideen groups in hot pursuit across the Line of Control. "We sought to incorporate in the document the structure of a future dialogue process on all issues, including meetings at official, ministerial and summit levels," the premier said. "We made proposals for addressing the issues of peace and security, including nuclear and conventional CBMs (Confidence-Building Measures), Jammu and Kashmir and terrorism, and all other issues from the composite dialogue," Mr Vajpayee said. "Eventually, however, we had to abandon the quest for a joint document mainly because of Pakistan's insistence on the 'settlement' of the Jammu and Kashmir issue, as a precondition for the normalization of relations. "Pakistan was also reluctant to acknowledge and address cross- border terrorism. My cabinet colleagues and I were unanimously of the view that our basic principles cannot be sacrificed for the sake of a joint document." Text of Prime Minister Vajpayee's statement in parliament: Following is the text of the statement made by Indian Prime Minister Atal Behari Vajpayee in the Parliament on Tuesday: "Hon'ble members would recall my invitation to President Pervez Musharraf of Pakistan to visit India. In the days and weeks before his visit, I had occasion to exchange views and perspectives - individually and collectively - with leaders of political parties, eminent personalities, media representatives and intellectuals on the future prospects for India-Pakistan relations. They endorsed, almost unanimously, our view that the visit should be used to seek avenues for durable peace and cooperative friendship with Pakistan. Building on the Simla Agreement and the Lahore Declaration, we sought, through the invitation and the consequent visit, to strengthen the broad-based framework of dialogue, so that progress could be made on all outstanding bilateral issues, including Jammu and Kashmir. We also identified the continuing cross-border terrorism as an important subject to be addressed. To promote a congenial environment and confidence-building in advance of the visit, the government announced some significant decisions relating to peace and security, nuclear and non-nuclear CBM's, people-to-people contacts, humanitarian issues, education, youth exchanges and trade. We believe these decisions have been well received by the people of India and Pakistan. The government remains committed to implementing them. President Musharraf, accompanied by Begum Musharraf, was in New Delhi on July 14. He was accorded full ceremonial honors. He called on the President, who hosted a state banquet. The vice- president, home minister, the external affairs and defence minister and the Leader of the Opposition in the Lok Sabha called on him. I hosted a lunch in his honor. At the retreat in Agra on July 15 and 16, President Musharraf and I had extensive one-to-one talks for over five hours. We also had talks at the delegation level. During these discussions, I emphasized the importance of creating an atmosphere of trust for progress on all outstanding issues including J & K. I took up other specific issues which would help the processes of peace. These included the issue of 54 PoWs believed to be in Pakistani jails, the extradition of known terrorists and criminals who have been given sanctuary in Pakistan; the upkeep of Sikh gurdwaras and Hindu temples in Pakistan, the treatment of Indian pilgrims visiting shrines in Pakistan, and the enhancement of mutually beneficial trade. I focused on the terrorism being promoted in the state of J & K. I conveyed in clear terms that India has the resolve, strength and stamina to counter terrorism and violence until it is decisively crushed. I want to reiterate this determination today on the floor of this house. In his presentations, President Musharraf focussed almost exclusively on Jammu & Kashmir. Honorable members would be familiar with all his views, since they were widely disseminated in both our electronic and print media. Despite the obvious differences in our perspectives, we made progress towards bridging the two approaches in a draft joint document. We sought to incorporate in the document the structure of a future dialogue process on all issues, including meetings at official, ministerial and summit levels. We made proposals for addressing the issues of peace and security including nuclear and conventional CBMs, Jammu and Kashmir and terrorism; and all other issues from the composite dialogue. Eventually, however, we had to abandon the quest for a joint document mainly because of Pakistan's insistence on the 'settlement' of the Jammu and Kashmir issue, as a precondition for the normalization of relations. Pakistan was also reluctant to acknowledge and address cross-border terrorism. My Cabinet colleagues and I were unanimously of the view that our basic principles cannot be sacrificed for the sake of a joint document. Honorable members, There are strong views both in India and in Pakistan about Jammu and Kashmir. But it is our conviction that an all-round development in the relationship between India and Pakistan will have a beneficial impact on our dialogue on J&K. No worthwhile purpose would be served by a debate on whether or not J&K is a "core issue". But we cannot ignore the fact of terrorism and violence in the state, which is exported from across the borders. We cannot accept that the insurgency in Jammu & Kashmir today, with its foreign mercenaries and generous assistance from abroad, is anything but terrorism. The daily killing of innocent men, women and children can simply not be glorified as "jihad" or as any kind of political movement. Please reflect that, soon after the Agra summit had concluded, our pilgrims on their way to the holy shrine of Amarnath were killed. And just two days ago another massacre of members of one community occurred at the hands of the terrorists. That is why Pakistan's refusal to end cross-border terrorism is the main hurdle in the creation of a conducive atmosphere. Pakistan has been seeking a solution to J and K in accordance with the wishes of the Kashmiri people. I am certain that the primary wish of every single Kashmiri, whether from the Kashmir valley or Jammu, Ladakh, "Pakistan-occupied Kashmir", the northern areas or the Shaksgan valley, is to live in peace, security and freedom, so that he can make economic progress. We should constantly strive to provide him with this fundamental right. Most of the Kashmiris have their elected representatives, through whom they express their legitimate aspirations. We are also willing to listen to all other streams of Kashmiri opinion, however small the minority they represent, as long as they abjure violence. It is in this spirit that we had offered to talk to the representatives of the All- Parties' Hurriyat Conference. President Musharraf has extended an invitation to me to visit Pakistan. I have accepted this invitation. The foreign minister of Pakistan has similarly invited the external affairs minister. This, too, has been accepted. Thus, our bilateral engagement with Pakistan will continue. We will continue to seek dialogue and reconciliation. We will persist with our efforts to convince Pakistan that our bilateral cooperation should not be held hostage to the resolution of any one issue. Though we could not conclude a joint document in Agra, we did achieve a degree of understanding. We will build on this to further increase the areas of agreement. Obviously, India's concerns in vital areas - such as cross-border terrorism - will have to find place in any document that future negotiations endeavour to conclude. Let me add - we are not looking for propaganda advantage or seeking to score debating points. We will engage in quiet, serious diplomacy. Our endeavour for a relationship of peace, friendship and cooperation will be pursued vigorously.-J.N DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010723 ------------------------------------------------------------------- Vajpayee blames Musharraf for talks breakdown ------------------------------------------------------------------- NEW DELHI, July 22: Indian Prime Minister Atal Behari Vajpayee said that President Pervez Musharraf's inflexibility on Kashmir at the recent summit broke down talks though they had agreed on some points. "The talks broke down because of Pakistan's adamant attitude against making any reference to cross-border terrorism in the draft document which they repeatedly termed as a freedom struggle," Vajpayee told reporters. Another factor for the deadlock was Islamabad's insistence that "until the Kashmir issue is resolved, there cannot be normalization of relations between the two countries," Vajpayee said. Vajpayee rejected Islamabad's claims that he and Musharraf came close to signing a draft document at the summit, where the two leaders met three times for talks. "No draft came before us. It was discussed only at the delegation level," he said but conceded the two sides did agree on "some points" during the intense negotiations in Agra. Vajpayee did not elaborate. The Indian prime minister also said New Delhi would not accept the involvement of a mediator in the Kashmir question. The comments were the first by the Indian premier since the breakdown of the July 14-16 summit. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- LoC firing: Pakistan to retaliate, says Qureshi ------------------------------------------------------------------- ISLAMABAD, July 21: Pakistan said it would retaliate if its troops were fired upon by Indian soldiers along the Line of Control. " There is not going to be any initiation of firing on Pakistan's part. But if we are fired upon we will retaliate, which is self- defence," Pakistan government spokesman Major-General Rashid Qureshi told AFP. His comments followed artillery duels between the two sides in Kashmir's Kargil region on Friday and early on Saturday. " The Indians fired 83 shells at the Kargil sector on Friday," Qureshi said, adding that Pakistan forces had responded with restraint. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010725 ------------------------------------------------------------------- No concern over Washington-Delhi ties, says Sattar ------------------------------------------------------------------- ISLAMABAD, July 24: Foreign Minister Abdul Sattar has said Pakistan is not concerned over the growing ties between the United States and India if they do not hurt Islamabad's interests. "India and the US are welcome to have friendly relations. Our concern arises only when the United States seeks to improve relations with India at the expense of Pakistan's," he said in response to a question in an interview with the CNN. "We don't worry. In fact, we ourselves would like very much to have friendly relations with India. How can we object to US having friendly relations with India?" Responding to a question about the Agra summit, Sattar said President Gen Pervez Musharraf and Indian Prime Minister Atal Behari Vajpayee had achieved a meeting of minds in their summit. "They understand each other better than they might have in the past." He said President Musharraf had invited Premier Vajpayee to visit Pakistan and the offer had been accepted. He expressed the hope that during the proposed visit the two leaders would pick up the threads of inconclusive meeting at Agra and reach an agreement so that the process of addressing outstanding issues and improving relations could begin. He said that both the leaders were committed to a vision of better relations between the two countries. "I personally hope that the atmosphere will not be vitiated by statements that seem to point fingers of accusation at each other. I think such an exercise will be counter-productive and certainly will not achieve the objective that the two leaders shared at Agra." He said Gen Pervez Musharraf and Vajpayee were much more constructive and positive in their discussions and they recognized that there was a problem. There was an issue in Kashmir that needed to be addressed, he said. "I think, the end-result that was in sight in Agra is an agreement to begin a dialogue process. A dialogue process that will address the Jammu and Kashmir issue." Sattar said Pakistan's position on Kashmir was very clear that this dispute had to be resolved in accordance with the will and wishes of the Kashmiri people. "Kashmir should not be seen as a territorial dispute," he said adding, "it would be unrealistic to expect a durable settlement that does not take into account the wishes of the Kashmiris."-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- Musharraf wrong in criticizing Simla accord, says PPP ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 21: A spokesman of the Pakistan Peoples Party said that President General Pervez Musharraf is wrong in asserting that Simla Agreement did not recognize the centrality of Kashmir dispute and that it had failed to carry Pakistan forward. Responding to the remarks made by President Musharraf during his news conference, the PPP spokesman said that Simla Agreement had not only recognized the centrality of Kashmir dispute, it had also ensured a long term peace between the two countries. "Prior to the summit General Musharraf spoke of changing history. Having returned by his own admission, 'empty-handed' he now speaks as though history began with his journey to Agra. This is typical language of unrepresentative rulers who stung by lack of mandate seek to comfort themselves with the illusion of changing the course of history," the spokesman said. "The general was however right in urging the people of Pakistan, India and Kashmir to strengthen the hands of moderates who are yearning for peace for the sake of alleviating the miseries of the people of the subcontinent". "Moderates are hardly strengthened in an environment of one man rule in which the dictator, believing himself to be the repository of all wisdom and truth, relies on the extremists to keep himself in power," the spokesman pointed out. "If the general really wishes to strengthen the moderates he should immediately hold elections, restore the constitution and rule of law in the country." "The PPP believes that General Pervez Musharraf has used the summit only for his personal benefit. He used the run up to the summit to capture the presidency. He is now manipulating the fall out of the failed summit to redraw domestic political picture to perpetuate himself in power". DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010728 ------------------------------------------------------------------- Pakistan to plead for lifting of US sanctions: Rocca due today ------------------------------------------------------------------- By Jawaid Bokhari KARACHI, July 27: Pakistan faces an uphill task in convincing the United States for lifting the three layers of sanctions that are holding up bilateral military and economic assistance. Although the Bush Administration feels that sanctions have not helped, American diplomats here say that the US Congress and Senate have to be convinced. An independent task force set up by the then Clinton Administration, too, had noted that "US sanctions are particularly pertinent to Pakistan, which is far more dependent than India on international assistance." The task force report recorded the view that "sanctions can work against the US interests, including the goal of regional stability." Ambassador-designate Wendy Chamberlain told the Senate on June 27 that there was a need to redefine US relations with Pakistan in the interest of regional stability. US diplomats here, however, say that the multiple sanctions have made the issue complicated. In 1990, Pakistan became ineligible for new US assistance when the then US president failed to certify under Pressler Amendment that Pakistan did not possess a nuclear device. In May 1998, former US president imposed economic and military sanctions as mandated under Arms Export Control Act. The 1999 military coup in Pakistan triggered sanctions under Section 508 of the Foreign Appropriation Act. US officials point out that the three layers of sanctions have common items on which these are applicable. Hence, there would be a gradual lifting of controls. The issues relating to sanctions would be grappled in talks between Pakistan officials and US Assistant Secretary of State Christina Rocca in Islamabad next week. Ms Rocca is due in Pakistan on Saturday. A Foreign Office spokesman has said that the US should not adopt a different approach on lifting of sanctions imposed on Pakistan and India after the May 1998 nuclear tests. In October 1999, the US Congress authorized the president to waive sanctions applied against India and Pakistan, affecting non- military programs, foreign assistance, commercial financing and Import-Export Bank financing. The president waived economic sanctions on India. Because of the military coup, sanctions on Pakistan were waived only to the extent of assistance for food and other agricultural commodities and for US bank loans and credit. In November 1998, then US president lifted restrictions on the activities of US banks in India and Pakistan. Similarly, the Foreign Operations Export Financing and Related Agencies Appropriations Act, 2001, has provided an exception under which Pakistan can be provided US assistance for basic education programs. A brief submitted by the Foreign Affairs, Defence and Trade Division to Congress in March 2001 says: "Currently, US assistance to Pakistan is limited mainly to refugee and counter- narcotics assistance." The US government has supported a resumption of multilateral assistance by the IMF, World Bank and Asian Development Bank as well as debt rescheduling by the Paris Club. No sanctions have been applied on trade and investment. Trade has flourished to the advantage of Pakistan. Exports in 1999-2000 amounted to $2.1 billion against imports of $646 million. In 1996-97, Pakistan enjoyed a trade surplus of mere $50 million. The bilateral assistance that boosts US exports to Pakistan has almost dried up. USA is among the top private investors though the volume is not very large. During the last fiscal year, the direct American investments totaled some $60 million, down from the previous year's $140 million. The decline reflected the general trend since there was a sharp fall in direct foreign investment last year to just over $300 million from a range of $500-600 million. Yet, the largest investment came from the United States. Some Pakistan officials believe that bilateral assistance may appear to be out of question in the current scenario but some waivers could enable US Import-Export Bank and Overseas Private Investment Corporation to encourage and push up the level of American investment. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010728 ------------------------------------------------------------------- Democracy-related US sanctions likely to stay intact ------------------------------------------------------------------- By Syed Talat Hussain ISLAMABAD, July 27: While Pakistan is preparing to plead a strong case for the removal of US sanctions during the visit by Assistant Secretary of State for South Asian Affairs, Christina B. Rocca, it might find it hard to convince the US official on democracy-related sanctions which are likely to stay intact. Background interviews and discussions with senior diplomatic and official sources reveal that sanctions imposed under section 508 of the Foreign Operations Appropriation Act, relating to the overthrow of an elected government by means "of a military coup or decree", are the hardest nut to crack in the overlapping sanctions against Pakistan. Officials say that Pakistan would take the opportunity of Ms Rocca's visit to strongly suggest that sanctions are hindering the effort to build a strong democratic base in the country, and should therefore be lifted immediately. Pakistan will point to the establishment of grassroots democracy (local bodies) and the favorable response it has generated among voters in support of sanctions removal imposed under section 508. However, the absence of higher level democracy will dilute the impact of this case. On the democracy front, sources say, three issues are of a particularly thorny nature: no dates for the holding of provincial and national assemblies elections, confusion about the changes the generals may want to bring about in the political system as well as in the constitution before restoring democracy, and the manner in which Gen Musharraf elevated himself to the office of presidency. Diplomatic sources say that while the US public reaction to Gen Musharraf's self-selection as the president was not overly harsh, in private Washington took strong exception to the development, and to the fact that this happened during Foreign Minister Abdul Sattar's visit to the USA, who was unaware of the timing of the event. Gen Musharraf did do some damage limitation by telephoning Secretary of State Colin Powell detailing the circumstances that had led to this decision. However, since then many in the State Department have been casting doubts on the reliability of the commitment of Gen Musharraf to restoring full democracy. Sources say that the government of Gen Musharraf has to cover a lot of ground before reaching the point to convince Washington to removing Section-508 sanctions. The section imposes restrictions on foreign military financing and sales, IMET, a range of counter-narcotics, Trade and Development Agency, Overseas Private Investment Corporation, and US Aid fund programs. The State Department did invoke restrictions concerning a health program operated by private organizations besides TDA and OPIC investments. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- Altaf puts stress on dialogue with India ------------------------------------------------------------------- Staff Reporter KARACHI, July 21: The chief of the Muttahida Qaumi Movement, Altaf Hussain, has said that the old and complex issues between Pakistan and India can be solved only through meaningful and positive dialogues and not through wars. Giving his views on the recently held negotiations between Pakistan and India at the top level, Mr Altaf said that unlike other politicians he had already said that he was not very much hopeful about the meeting between President General Pervez Musharraf and Indian Prime minister Atal Behari Vajpayee. It must be realized that old disputes between the two countries could not be resolved in one or two meetings, but there was a need for adhering to a realistic and practical process, accepting the facts in their due perspectives, and to look for any appropriate and acceptable solution through continued dialogues and negotiations, he elaborated. He said that the Muttahida had welcomed the Pakistan-India leadership meeting as it was the policy of the party that issues with neighbouring countries, particularly India, should be settled through meaningful dialogues. "We want the resolution of the Kashmir issue and bilateral relations with India so that problems of the people of the two countries as well as Kashmiris could be solved," he pointed out, adding that though any breakthrough could not be achieved in dialogues between India and Pakistan, but the process of dialogues should continue. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- Indian editor reveals Pakistan draft ------------------------------------------------------------------- By Jawed Naqvi NEW DELHI, July 21: An Indian editor who attended President Pervez Musharraf's breakfast meeting in Agra on the last day of his visit claimed to have secured the text of Pakistan's draft declaration which India rejected at the summit talks. India Today magazine editor Prabhu Chawla put the text of what he says is the first Pakistani draft in Agra on the Internet newspaper run by the same publishing house. Chawla says the draft was made exclusively available to him but it was not clear by which of the two sides, if there wasn't a third one. The text of the draft shows the Pakistani side fairly high up, proposing the resolution of the Kashmir dispute according to the wishes of the people of the region and it was to be discussed at the foreign ministers' level. The timing of the obviously leaked draft is interesting as it comes two days before the Indian parliament opens for the monsoon session. There has been considerable speculation in the Indian media about an almost-agreed draft that apparently carries some changes made in his own hand writing by Indian External Affairs Minister Jaswant Singh. If the Pakistani draft kicks up a row or tempts Islamabad to show the Indian part of the document, including, if it exists, one with Singh's jotted remarks, it could spell serious embarrassment for Prime Minister Atal Behari Vajpayee. Following is the purported text of the Pakistani document published by Chawla: * "First Pakistan Draft: 15th July, 2001, 18:30 hours, Agra. The President of the Islamic Republic of Pakistan and the Prime Minister of the Republic of India, Sharing a vision of peace, progress and prosperity for their peoples in the twenty-first century, * Resolved to establish a just and lasting peace between the two neighbours, * Cognizant of the benefits of good-neighbourly cooperation between their two countries, * Committed to the principles and purposes of the United Nations Charter in the conduct of their bilateral relations, * Upholding the principles of respect for territorial integrity and sovereignty, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence, * Convinced that resolution of disputes and differences by peaceful means in conformity with the principles of justice and international law will provide an indispensable foundation for rapid normalization of relations and herald a new era of mutually beneficial cooperation between the two countries and in the South Asian region, * Determined to pursue a nuclear policy of restraint and responsibility, * Resolved to take steps to reduce the risk of accidental or unauthorized use of nuclear weapons, * Recognising that the Jammu and Kashmir dispute has bedevilled relations between the two countries, generated mutual distrust and impeded their economic and social development and that its earliest possible settlement in accordance with the wishes of the people of Jammu and Kashmir is indispensable for the promotion of the welfare of the people of the two countries and the promotion of amity and cooperation between them. Recognising further that the nuclear dimension of the security environment of the two countries adds to their responsibility for avoidance of conflict between them and the resolution of (the Jammu and Kashmir dispute) (all outstanding issues) have agreed to the following: 1. The two governments will make determined efforts to overcome the legacy of mutual distrust and suspicion and to build amity and good-neighbourliness. 2. The two governments will recommence negotiations to resolve the Jammu and Kashmir dispute in accordance with the wishes of the people of the state. To that end, their foreign ministers will hold their first meeting in (August 2001). 3. The two governments will consult the Kashmiri people, as appropriate, during the dialogue process. The Government of India agrees to facilitate the travel of APHC to Pakistan for this purpose. 4. The two sides will pursue a nuclear policy of restraint and responsibility and will reinforce steps, individually or jointly, to reduce the risk of accidental or unauthorized use of nuclear weapons. They will also strengthen custodial controls. Talks on these subjects will be initiated at the level of foreign secretaries. 5. The integrated and composite dialogue will be resumed at an early date during the current calendar year for a discussion of all other bilateral issues. 6. The two sides will support reactivation of the Saarc process and the holding of the Eleventh Summit at a date convenient to the host country and other member states of the association. 7. They will hold regular summit meetings to review the progress on bilateral relations and decide on additional measures to accelerate the pace of normalization of relations. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- Body on judicial reforms to be set up ------------------------------------------------------------------- By Rafaqat Ali ISLAMABAD, July 26: The government has decided to set up a 'National Policymaking Authority for Judicial Administration' for making judicial reforms "more effective and meaningful". The new authority will be responsible for all judicial activities in the country. It would be raised after modifications in the setup of the Pakistan Law Commission, a statutory body working under the administrative control of the Chief Justice. The new body would be responsible for leading the judicial system through new initiatives, advocating improvements and speaking out on behalf of the judiciary. The authority would comprise the Chief Justice, Law Secretary, appointees of provincial law ministers, chairman of the Islamic Ideology Council, Chief Justice of the Federal Shariat Court, and Chief Justices of the four high courts. In presence of the new body, the existing Chief Justice's Committee would become redundant. It would also remove the objection of the legal fraternity that the CJC had no legal sanctity. The executive offices of the new body would be housed in the Supreme Court building in Islamabad. The authority would have six departmental offices: the office of the executive director; the legal affairs and public information office; the management and information systems office; the analysis and planning office; the budget and finance office; and the human resources. The authority would work in a consultative fashion, representing the interests of the judiciary in many areas. The executive director of the authority will serve as the chief administrative office for the judicial system. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Sikandar Hayat sworn in AJK PM ------------------------------------------------------------------- By Tariq Naqash MUZAFFARABAD, July 25: Sardar Sikandar Hayat Khan was sworn in as prime minister of Azad Jammu and Kashmir for the second time. He was administered oath by AJK president Sardar Mohammad Ibrahim Khan. Sixty-nine-year old Sardar Sikandar, who headed a special committee of Muslim Conference ahead of elections, is the sixth premier of Azad Kashmir since the parliamentary form of government was introduced in the liberated territory in 1975. The swearing-in ceremony was held at a green lawn of the state's legislative assembly building and was attended by more than 3,000 people from different parts of Azad Kashmir. They included the outgoing premier Sultan Mahmood Chaudhry, federal minister for Kashmir affairs, Abbas Sarfraz Khan, Muslim Conference chief Sardar Abdul Qayyum Khan, APHC convener Mohammad Siddique Ghanai, opposition and ruling party MLAs and senior civil and military officials. "I will remain faithful to the ideology of the accession of the state of Jammu Kashmir to Pakistan," pledged Sardar Sikandar among other things in his oath, administered by the president, whose term is to expire on Aug 1. Later in his policy statement he said, "my priorities are to deliver good governance, enforce financial discipline, bring an end to sifarish and corruption culture and establish the rule of law, justice and merit." He vowed that he would achieve this goal through an honest, efficient and agile administration. He said merit would not only be implemented in government services but also in every other field of life. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010728 ------------------------------------------------------------------- Rs250bn development projects to be launched next month ------------------------------------------------------------------- By Ihtasham ul Haque ISLAMABAD, July 27: The government has decided to undertake 20 mega development projects from this year at a huge cost of Rs250 billion. Official sources said here on Friday that the initiation of these projects will be announced on August 14 by President Gen Pervez Musharraf. These development projects include dams and new communication systems across the country. The sources said all the 20 projects were accorded top priority for which funds were being mobilised from China, Saudi Arabia, UAE, the World Bank and the Asian Development Bank. By now, the sources say, China has agreed to extend roughly $1.5 billion while Saudi Arabia is expected to offer about $500 million. The latter had earlier agreed to provide $250 million. Of the 20 projects identified, "Gomal Zam Dam Multipurpose Project" will be undertaken on August 14, 2001 and will be completed in 2005-2006. The proposed project aims at providing irrigation water supplies to 163,086 acres of land, generating 17.4 MW of electricity and mitigating flood dams in areas downstream of the dam. The project will raise agriculture productivity and hydel power generation in a high-potential region and benefit over 40,000 farming households. It will also provide protection to Chashma Right Bank Canal. The overall economic benefits in the long run will be significant for the region considering the water situation in the years ahead. "Hingol Dam Project" of WAPDA will cost Rs21 billion with a foreign exchange component (FEC) of Rs1.9 billion. The commencement date of this project is also August 14, 2001, to be commissioned in three years. The multi-purpose project envisages uplift of the local economy by providing irrigation and drinking water and generating electricity. About 0.97 MAF will be gross storage capacity. The command area to be irrigated will be 9,250 acres. About 5 mgd of water has been planned for the use of Hingol Port and Industry in the area. Moreover, power equivalent to 300 KW of installed capacity will be generated for this power-deficient region. The possibility of exporting about 115 mgd surplus water to the UAE or, alternatively, its conveyance to Karachi for drinking purposes or for irrigation of additional 41,000 acres of land lying on both sides of Liayari- Ormara Road will be looked into. The main dam will be earth-filled type having a maximum 130-ft height and 1,300-ft length. The project is expected to benefit the entire region in more ways than one. "The Right Bank Outfall Drainage Project" of WAPDA is estimated to cost Rs14 billion and its foreign aid requirement is yet to be finalized. The project is to commence this year and is thought to complete in six years. The main objective of RBOD project is to minimize drainable surplus and to dispose of the drainage effluent into the sea, thus reducing the overall salt concentration in agricultural land and improving the agricultural productivity. Major works to be undertaken include: construction of main drain from Mancher Lake to the sea, New surface drainage projects (Waharah, Saifullah Magsi, Dokri, Begari and Frontier); rehabilitation of completed drainage projects (Larkana, Shikarpur, Sukkar FGD SCARP and Sukkar SCARP transition); Canal remodelling (Rato Dero and Shahdadkot Canals); and Manchar Lake rehabilitation. The project is expected to conserve land assets on the right bank of the River Indus and restore salt-ridden Manchar Lake. It will make the agrarian system more productive and sustainable benefiting over one million households directly and 5 times that number indirectly by raising the quality of water. It will also have inter-provincial benefits by providing a conduit for disposal of effluent which otherwise damages land. "Thal Reservoir Project" of WAPDA whose cost is still to be worked out will be undertaken in 2002. The main objective of the project is to provide useful storage of 1.6-2.3 MAF for irrigation desert in Thal area besides providing opportunity for hydel generation up to 50 MW. Physical works includes construction of reservoir covering an area of 180,000 acres out of which 150,000 acres are located in the command of Greater Thal Canal scheme. The project benefits are multifarious covering the agriculture sector and power sector. It will bring an arid region under more assured water availability and allow horizontal expansion of agriculture in future years. "Kachhi Canal with Barrage at Mithon Kot project" of WAPDA has been cleared by the Planning Commission at a cost of Rs44 billion. "Raising of Mangla Dam by 40 FEET", again a WAPDA project, has been approved by the Planning Commission. Nevertheless, no cost has been firmed up nor its commencement and completion dates worked out. The project envisages providing additional water storage to meet the ever-increasing irrigation demands, enhance the existing power generation capacity and control floods in the downstream irrigated areas. "Greater Karachi Water Supply Project for Additional 100 MGD Water Phase-V" will be undertaken very shortly and will be completed by March, 2003 at a cost of Rs6.1 billion. The scope includes: construction of conduits and siphons at various locations (58km); construction of tunnel bypass 7km, provision of 72 inches dia M.S. Pipelines (21km); construction of pumping stations at Dhabeji and NEK; and provision of pipeline for Hub Industrial Estate/Town (35km). "Quetta Water Supply Project" will cost 85 million dollar and the main funding is likely to come from donors. It is to be taken up in March, 2001 and completed by June 2002. "Makran Coastal Road", a project of the National Highway Authority, will cost Rs15 billion. It is due to begin in 2002 and completed by 2006. The project provides for the construction of 653-km-long road from Liari, about 100km north of Karachi on the existing RCD Highway to the Pakistan- Iran border near the town of Gabd. "White Oil Pipeline Project" of Pak-Arab Refinery Company (PARCO) will cost Rs25.9 billion with foreign exchange component of Rs10.3 billion. It will be completed by 2002. The project has been conceived to replace the existing Parco pipeline which will be converted to crude oil on commissioning of PARCO Mid-Country Refinery Project. The Pipeline will be constructed on Build, Operate and Own (BOO) basis on a competitive tariff. The initial capacity of the pipeline will be 5 million tons per annum which will be expanded to 12 million tons per annum by 2010. "Sheep and Goat Production" project of the ministry of food and agriculture will cost Rs115 million and will be completed within 2001. The project will aim at enhancing goat and sheep production through better feeding and management practices in order to increase the mutton production and reduce its prices. "Manufacture/Procurement of 69 locomotives" project of Pakistan Railways will cost Rs 121 billion. Its foreign exchange component is Rs 64 billion. The project will procure and manufacture 2,000- horse power and 3,000-horse power locomotives. The project will be started in 2001-2002 and will be commissioned in 2004-2005. "Procurement of 29 Electric Locomotives" project of Pakistan Railways will cost Rs4.4 billion and will be undertaken in 2001- 2002 and completed in 2003-2004. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- President to seek funds for 18 projects ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 21: President Pervez Musharraf will formally seek foreign investment for the construction of 18 dams and hydropower projects worth Rs230 billion. The 18 projects comprise seven mega- water sector projects worth Rs229 billion and 11 hydropower projects of around Rs1.5 billion. Seven water sector projects now being offered to the investors are: Rs53 billion Raising of Mangla Dam in Azad Kashmir, Rs44 billion Kachhi Canal with new barrage at Mithankot, Rs12.8 billion Gomal Zam Dam in NWFP, Rs8 billion Mirani Dam in Balochistan, Rs61 billion Greater Thal Canal/Thal Reservoir in Punjab, Rs51 billion Rainee Canal in Sindh, and Satpara Dam in Skardu. Priority hydropower projects under phase-1 include $162 million Jinnah, $80 million Malakand-III, $110 million Allai Khwar, $104 million Golen Gol, $110 million New Bong, $86 million Khan Khawar, and $109 million Duber Khwar. Mega hydropower projects like $1.5 billion Neelum-Jehlum, $1.4 billion Kohala and $110 million Matiltan are also expected to be offered to investors. >From Aug 14 to 16, the president would inaugurate work on Mirani Dam, Gomal Zam Dam, Greater Thal Canal and Right Bank Outfall Drain in Balochistan, NWFP, Punjab and Sindh, respectively. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Death toll in twin cities rises to 58 ------------------------------------------------------------------- By Mohammad Asghar RAWALPINDI, July 25: The death toll in the twin cities of Rawalpindi and Islamabad has climbed to 58 as the rescue operation was still continuing, the authorities and eyewitnesses said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010724 ------------------------------------------------------------------- Floods wash away Mansehra village ------------------------------------------------------------------- By Musaddiq Ali MANSEHRA, July 23: At least 150 people were killed, hundreds of others injured and many more reported missing as a pre-dawn heavy downpour, followed by flash floods, wreaked havoc on rural parts of Mansehra, Swat and Buner districts. Dadar Qadeem was the worst hit village in Mansehra where more than 70 bodies were recovered. About 200 houses in the village, were washed away by violent waves from Seron River. People in the village told Dawn that the rain had started at 2:30am and the lightning and thunderstorm hit thrice Dadar Qadeem before huge torrents, carrying big rocks and trees with them, hit the village. A portion of Dadar sanatorium was also damaged. Witnesses said that scores of people were trapped in the village as rescuers were facing difficulties to carry out relief operation after a bridge, about a kilometre from Dadar Qadeem, also collapsed. Armymen and volunteers were busy cutting a hill to make an alternative route to the village. The other villages in Mansehra were Dodorban and Salbandi, 43km from here, where 20 bodies were recovered from the debris of seven collapsed houses. However, the police, officials of administration and armymen managed to reach the area. Ambulances from all over the district were sent to the calamity-hit area, and volunteers from Edhi Welfare Trust and other organizations were busy recovering bodies and injured from the debris. The assistant commissioner of Mansehra, Haroonur Rafique, told Dawn that 60 bodies had been recovered from Dadar Qadeem and 16 from Bandodor and Salbandi villages. SSP Inam Ghani, in a press release, said that only 52 people had been killed and 40 others injured. - AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010724 ------------------------------------------------------------------- PIA regrets Russian action: Forced landing ------------------------------------------------------------------- KARACHI, July 23: Pakistan International Airlines insisted it had permission to fly through Russian airspace after one of its Manchester-bound Boeing-747s was forced to land by a Russian fighter jet. PIA also expressed regret over Sunday's incident, in which a Russian MiG-29 fighter intercepted the PIA jet and forced it to land at Moscow's Sheremetyevo airport. "The Pakistani Boeing-747 had permission to fly through Russian airspace and we faxed this to the Russian aviation authorities after the plane was forced to land," a PIA spokesman told AFP. "It is unfortunate that despite the permission the plane was forced to land which caused inconvenience to the passengers." Russian aviation sources quoted by Interfax news agency earlier said the Boeing, en route from Islamabad to Manchester, had strayed into Russian airspace without permission and failed to respond to air traffic controllers. The plane was allowed to fly to Manchester on Sunday evening after an investigation in Moscow. The PIA spokesman said it returned to Islamabad via Georgia and Afghanistan to avoid further confusion with Russia. "Pakistani aviation authorities will take up the issue after a probe into the incident," he said.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010723 ------------------------------------------------------------------- Production of 300 Al-Khalid tanks planned ------------------------------------------------------------------- ISLAMABAD, July 22: Pakistan will add another 300 indigenous Al- Khalid tanks to its armoured corps by 2007, defence sources told APP. According to sources, Pakistan has achieved the capability of producing tanks of international standard, not only to meet its domestic needs but also supply these to friendly countries. The government established a tank repair workshop (504 Central Workshop EME at Multan) with the assistance of Czechoslovakian Government. After going through various phases, the modernization of the first batch of 500 tanks T-59 with Chinese assistance commenced in mid nineties. Tank manufacturing and gun manufacturing factories were simultaneously set up with the technical assistance of China and went into production in mid nineties.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Taliban to set up camps for returning DPs ------------------------------------------------------------------- ISLAMABAD, July 25: The Taliban vowed to establish camps for returning refugees inside Afghanistan, and called for an end to UN sanctions amid a humanitarian crisis. Afghanistan Ambassador to Pakistan Mullah Abdul Salam Zaeef said the Taliban would set up camps to help tens of thousands of returnees from Iran and Pakistan, where they were facing "increasing harassment". "The council of ministers of the Islamic Emirate of Afghanistan has taken a decision to set up camps inside the country on an emergency basis and also to provide relief according to the government capacity," he told a press briefing. "We appreciate both Pakistan and Iran for accommodating Afghan refugees, but we also condemn the recent harassment and maltreatment of refugees in these countries."-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010728 ------------------------------------------------------------------- Election for Nazims in 84 districts on Aug 2 ------------------------------------------------------------------- ISLAMABAD, July 27: About 115,000 councilors will cast their votes in 84 districts of the country on Aug 2 to elect Nazims and Naib Nazims of tehsil, town and district councils in the fourth phase of the local bodies elections. This was stated by a spokesman for the Election Commission of Pakistan, Kanwar Muhammad Dilshad, while speaking at a PTV program. He said they would elect Nazims, Naib Nazims of tehsil, town and district councils besides electing councilors on special seats reserved for women, labors, farmers and minorities. Mr Kanwar said that the indirect election for this purpose would be held in 300 tehsils of 84 districts. Elaborating the structure of tehsil and district councils he said the Naib Nazims-elect of Union Councils would automatically become the members of Tehsil Councils while Nazims would turn to district councils as members.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- PAF plane crashes ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 26: A Pakistan Air Force fighter aircraft crashed 20 miles short of Masroor Air Base. The PAF officials while confirming the crash said that the aircraft was on a routine training mission when it crashed in Adam Khan area of Balochistan while returning to its base. The PAF officials said that the rescue operations are under way and Sea King helicopters of Pakistan Navy and the Rescue Squadron of Air Force were busy in searching for the pilot and the wreckage of the aircraft. However, because of night, difficulties were being faced in search operation, officials added. The officials said that it is premature to say whether or not the pilot ejected safely. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- PSO chief shot dead in Karachi ------------------------------------------------------------------- By S. Raza Hassan KARACHI, July 26: The managing director of the Pakistan State Oil, Shaukat Raza Mirza, and his driver were shot dead by two masked assailants in Clifton locality at about 8:45am on Thursday. Shaukat Mirza, was on his way to the PSO House when the attackers, riding a motorcycle, intercepted the car at the Chaudhry Khaliquzzaman Road-Chartered Accountant Avenue intersection and opened fire on him. Driver Sulaiman Mustafa Shah, tried to accelerate and in the effort rammed into the rear of a minibus at the intersection. The assailants chased and continued firing from the right side of the car, killing Shaukat Mirza on the back seat and wounding the driver. The car rolled for about 70 metres before coming to a halt on the Racecourse Road between Askari Apartment and Bedrock Apartment. A witness said that the killers then escaped, firing into the air. The two victims were shifted to the Jinnah Postgraduate Medical Centre, where the driver was pronounced dead by the medico-legal officer. The medico-legal officer said that Shaukat Mirza had received two fatal bullets: one in his ear which pierced through the head and the other on his chest. However, according to the Frere police, the PSO chief received six bullets in his head and chest, and the driver received two bullets. The SHO of the Frere police station, where an FIR was registered, said the police had started investigation into the case and added that it would be premature to term it a sectarian killing. The police found two empty cartridges from the back seat of the car. Sources, close to the family, told Dawn that Shaukat Mirza had been receiving threatening calls for the past many months. Sources in the PSO told Dawn that the PSO managing director had recently ordered reopening of some corruption cases of serious nature.
BUSINESS & ECONOMY 20010728 ------------------------------------------------------------------- Rs8bn cut in export rebate planned ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 27: The government plans to cut down the tax-based export rebate by Rs8 billion in the current financial year. Presently, the exporters are paid more than Rs15 billion in rebate annually, and the tax authorities now plan to pay them only the duty they deposit while importing the raw materials used in export products. The new formula chalked out for this purpose, also do away with the powers of customs authorities in determining customs rebate for textile, leather, engineering and other major sectors. The customs authorities have been paying more than 400 per cent in excess the rebate payable from 1996 to the exporters, which has caused more than Rs35 billion losses to the national exchequer, said sources here on Friday. To implement the new system for the payment of rationally calculated rebate, the Central Board of Revenue has issued four notifications as part of the budget 2001- 2002 - SROs 412, 413, 414 and 415. These notifications are for a quarter-wise reduction of 25 percent rebate from the current calculations, which means that in the July- September 2001 the rates would get reduced by 25 percent with a gradual further reduction by end-June 2002, ultimately saving more than Rs8 billion. The items, rates and their periods on imported materials for the purpose of rebate payment are as follows. The highest beneficiaries of the rebate have been textile sector, which got about 10 times more than the due amounts during the past 5-6 years. This practice was based on irrational fixation of the rebate rates by the CBR, and the laws governing payment left wide scope of manipulation as the tax authorities extorted money from exporters applying for rebate amounts. The new formula, which provides for payments to be cut down on quarterly basis, would reduce the chances of overpayments, as the rates would be brought down gradually to the levels of actual payment of duty by the export manufacturers importing raw materials for their products. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010724 ------------------------------------------------------------------- Three-year plan to stabilize economy ------------------------------------------------------------------- By Ihtashamul Haque ISLAMABAD, July 23: The government has finalized a three-year structural adjustment and economic stabilization program that primarily aims at reducing overall fiscal deficit to 3 per cent of the GDP by 2004. One of the important elements of good governance is to enforce fiscal discipline and strengthen country's fiscal position. For such an improvement, the reduction of fiscal deficit to 3 per cent of the GDP (Gross Domestic Products) by 2004 has been targeted as one of the major objectives of the government. The main objective of the three-year program (2001-2004), the details of which were made available to Dawn, was also to increase government revenue by 14.6 per cent or 16.5 per cent of the GDP. Increasing tax revenues including surcharges by 15.5 per cent or 15.7 per cent of the GDP by 2004 was also included in the program. The program also seeks to increase non-tax revenues by 9.9 per cent or 2.8 per cent of the GDP. It further promises to containing total expenditure by 10.2 per cent or 22 per cent of the GDP. Similarly, the program also calls for containing current expenditure by 17.7 of the GDP and increasing development expenditure by 12 per cent or 4.2 per cent of the GDP by 2004. The three-year program will provide a basis for the revival of economic growth. Increased development expenditure will be directed towards those products which create physical assets. To achieve its main objectives, the government has also worked out a strategy to be adopted during the program period. This strategy includes broadening the tax base through documentation of the economy, reducing multiplicity of taxes, application of general sales tax (GST) throughout the country, stepping up the resource mobilization efforts of the provincial governments including tax on agriculture income, generating of resources by the district level administration, improving elasticity of federal, provincial and local government taxes, periodic revenue of taxation laws and make them compatible with the requirements of the economy, rationalizing government expenditure i.e. bringing current expenditure to a bare minimum level and adequate flow of funds for the poverty-oriented development projects which could create physical assets, adequate system of user charges for public services, constant monitoring of public sector enterprises so that they become self-sustaining units, and ensuring adequate allocation of other incentives to support R&D activities for industrial development. The three-year program is aware of the need for steps required to minimize the discretionary upwards adjustments in the prices of the government-controlled items which serve as key inputs in the production process. The steps are aimed at documentation of the economy leading to broadening the tax base and promoting tax culture, administration of General Sales Tax (GST), strengthening of tax management and cleansing the taxation machinery from corruption and inefficiency. The fiscal policy aims at reducing fiscal deficit substantially and increasing government revenues. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- Deficit declining: Shaukat ------------------------------------------------------------------- Staff Reporter KARACHI, July 21: Finance Minister Shaukat Aziz expressed confidence that the country would be able to say goodbye to the International Monetary Fund in the next three years after taking up the last medium-term plan with the Fund in near future. The country would continue to borrow from the "friendly donors" to take up gigantic and economically productive programs like construction of Gwadar port after bidding farewell to the IMF. This is normal borrowing, he explained. "We have achieved stabilization of the national economy and are now on a path of acceleration in growth," the minister claimed before an audience of traders and businessmen of the Karachi Chamber of Commerce and Industry (KCCI), who had assembled to sort out their problems arising from the budget-related anomalies. Quoting figures to claim that budget deficit has been narrowed down considerably, current account has been contained, revenue collection has improved appreciably in last two years, exports have gone up, inflation has been contained to less than 5 per cent, industrial production has picked up tempo to touch 8 per cent growth, Shaukat Aziz said the government fully understood the pain and sufferings of the people because of the 'structural reforms'. But these reforms are inevitable, he stressed while pointing out the importance of government's efforts to contain budget deficit, which has come down to 5.3 to 5.5 per cent tentatively as against 6.5 per cent last year. Countries where these budget deficits were not addressed, he said, suffered a lot and mentioned Turkey and Argentina where national currencies had lost their values resulting in a mass restlessness. The minister said the government was making public a medium-term roadmap towards economic recovery on August 14. He announced the government was determined to achieve a four per cent plus growth next year which may go up to 5 per cent in 2002-03. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Pakistan to get $700m this year ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 25: The World Bank will offer $700 million to Pakistan for various projects, including $300 million banking sector loan and $130 million for mitigating the effects of drought. "We will be taking a number of projects worth $500 million to our board within this financial year for final approval," said John Wall, the country director of World Bank for Pakistan and Afghanistan. The remaining funding, he pointed out, had been committed for some other projects and it was likely to be disbursed before the end of this calendar year. The bulk of $130 million for drought would be made available to Pakistan within a few weeks, he said. Mr Wall told a news conference that at the request of the government of Pakistan the World Bank had reallocated $130 million for drought assistance from the restructured Second Social Action Program Projects and the National Drainage Project. He said the country strategy for Pakistan included the approval of a number of large lending operations between April and June: a $3 million trade and transport project, a $21 million on-farm management projects in the NWFP and $350 million Structural Adjustment Credit (SAC). For this period, the WB had also announced the implementation of $10 million global environment facility- funded protected areas management project. He did not rule out the possibility of another relatively smaller SAC for Pakistan within this year. "This boost in lending reflects our confidence in the reform agenda developed by the new government," Mr Wall said. He said the Bank's planned assistance till the end of 2001 for proposed projects included a $300 million banking restructuring and privatization project, a $30 million community infrastructure project and a $10 million HIV/AIDS project. These projects were now to be approved by the Bank's board of directors. He said the new Pakistan Country Assistance Strategy (CAS), which would be completed in the first quarter of 2001-02, outlined a three-year plan to help Pakistan improve basic social services, strengthen economic growth, generate employment and reduce poverty. About the drought package, the Bank official said that there would be rural water sector rehabilitation in the severely affected areas with focus on water conservation and enhanced water management. The package also ensured the availability of essential drought-related imports, including animal vaccines, agriculture and water sector equipment and inputs, petroleum and fuel products and essential medicines. In reply to a question, Mr Wall said there was no clarity how the government would transfer funds to district governments. "Municipalities and districts are not worthy of government loans," he pointed out. He said the proposed Poverty Reduction and Growth Facility was basically the IMF instrument of support which would be jointly supported by the World Bank and the Asian Development Bank. There could be a possibility of $500 million each by the IMF, WB and ADB for the PRGF, he added. Answering another question, Mr Wall said it was difficult to say that the government would achieve the 4.5 per cent GDP growth target during the current fiscal. The WB Country Assistance Strategy has forecast 3.2pc, 5.9pc and 6pc GDP growth for 2001-02, 2002-03 and 2003-04, respectively. He said investment climate needed to be improved and that there should be export-led growth in Pakistan. Mr Wall did not agree with a report that Pakistan should seek waiver of loans as it would harm the economy. He said SAP had been improved compared to a few years ago and added that the WB would continue to support SAP, especially to improve education and health sectors. He said the government of Pakistan was implementing an agenda which included specific steps for stabilization of economy, deregulation, governance reforms, devolution, accelerating growth and for improved social services. This homegrown agenda, he said, had become the foundation of the government's poverty reduction strategy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010725 ------------------------------------------------------------------- WB likely to offer $300m loan: Restructuring banking sector ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 24: The World Bank is likely to offer $300 million banking sector loan this year to help undertake large-scale restructuring of the Nationalised Commercial Banks (NCBs) and the Development Financial Institutions (DFIs). Official sources said here on Tuesday that a three-member delegation headed by Secretary General Finance Mr Moeen Afzal was currently visiting Washington and had held detailed talks with the World Bank authorities to secure $300 million banking sector loan. The delegation provided all the details to the WB officials about the "rightsizing and downsizing" of the NCBs and the DFIs. The sources said the World Bank had indicated to extend $300 million as a banking sector loan once its executive board gave the green light. Initially, the government planned to close down about 1,100 insolvent and loss-making branches of the NCBs and has reportedly informed about it to the World Bank. The WB authorities have also been told that the purpose of undertaking restructuring of the banking sector was to prepare NCBs for privatization. In this regard, the WB was told that Habib Bank and United Bank will be privatized within this year while the remaining government shares in the MCB and ABL will also be offloaded. The sources said the Pakistani delegation told the WB authorities that professional management�s in the three NCBs (NBP, HBL and UBL) were effecting a turnaround in their performance and getting them ready for privatization. The members of the delegation said that a new recovery law will soon be promulgated which would greatly improve the existing framework for recovery of the defaulted loans which now amount to Rs200 billion. The WB officials were told that the government was developing a bankruptcy law to facilitate the process of business closure. Pakistan has conveyed to the WB authorities that those who had been provided jobs in the banks and DFIs on political considerations both by the PPP and PML governments had either been removed or were in the process of being removed. Also, the services of those staff members were also being dispensed with whose performance was not satisfactory and who were considered deadwood. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Pakistan to enact freedom of information law: ADB loan ------------------------------------------------------------------- By Rafaqat Ali ISLAMABAD, July 25: Pakistan has agreed to enact Freedom of Information Act for obtaining loan of US $130 million from the Asian Development Bank, under which record of all financial deals (procurement, loan etc) of the government would be open to public scrutiny. Official sources told Dawn that enactment of Freedom of Information Act, and Broadcasting Media Act is one of the seventeen conditions for soft ADB loan for administrative, judicial and police reforms. The loan offer has come from the ADB and the federal government has asked the provinces to give their views by July 28. The federal government, however, has no objection to the conditionalities set for the loan. Under Access to Justice Program, the government would get US$130 million if it implemented the report, prepared by consultants. The report, on the basis of which loan offer has come, wants the following concerns to be addressed while passing the permanent law. * Clear rules and restricted standards on classification of government documents be spelled out. The tendency to "over- classify" must be curbed. * The law should apply to both federal and provincial governments. Jurisdiction of the earlier ordinance, which was allowed to be lapsed, was limited to federal government. * A pragmatic and incremental approach should be taken to the classification of documents for purposes of information requests. * Consultation should be held with civic groups to negotiate an acceptable appeal procedure when a government agency decides to withhold information and the applicant seeks to challenge it. Appeals procedure before the Ombudsman's office may not be effective. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010724 ------------------------------------------------------------------- $70 million ADB loan expected ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 23: The Asian Development Bank is expected to include three fresh projects of $70 million in its 2001-lending program to Pakistan, provided provincial governments removed policy objections quickly. These include $43m Punjab non-formal education for rural women project, $21m NWFP urban development project and $5.75m engineering loan for Quetta Water Supply & Sanitation. The ADB and Economic Affairs Division are expected to formally start loan negotiations very shortly, EAD sources told Dawn . DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010725 ------------------------------------------------------------------- Saudi Arabia offers $250m aid ------------------------------------------------------------------- By Ihtasham ul Haque ISLAMABAD, July 24: Saudi Arabia has agreed to finance various development projects worth $250 million in Pakistan on the fast track basis. A delegation of Saudi Fund for Development headed by Engineer Yousef I. Al-Bassam met Finance Minister Shaukat Aziz here on Tuesday and informed him that his country had agreed to extend $250 million to Pakistan for development projects. The finance minister urged the delegation to help the Pakistan government in its resolve to improve the economy. Welcoming the Fund's continued support, the minister underlined the need for fast disbursement of funds for economic development and prosperity. "Although our bilateral ties are very deep and well established, the degree of economic cooperation between the two countries needs a boost," said the minister. He expressed the hope that such visits and exchange of ideas would give the economic ties the required fillip. The minister briefed the delegation on structural reforms initiated by the government. "Our credibility with donors was poor but now we have set about putting the economy on the right track. We are trying to help our country grow and prosper." To achieve this goal, he said, the government had initiated the stabilization program and as a result of these measures the country was now moving from stabilization to growth. He further added that the tax and documentation drive launched by the government had accrued positive results. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Japan to give $32m for Kohat tunnel project ------------------------------------------------------------------- Staff Correspondent ISLAMABAD, July 25: The Japanese government will provide $32 million to Pakistan under its Official Development Assistance (ODA) program. The purpose of providing this loan is to meet a part of the funding requirements for the second phase of the ongoing Kohat tunnel project. An amount of $55.7 million was provided in 1994 for the first phase of this project. The loan will be extended on concessionary terms with an interest rate of 1.8% per annum, repayable over a period of 30 years including a grace period of 10 years. The Japan Bank for International Cooperation (JBIC), the Japanese implementing agency for overseas economic cooperation (ODA) and international financial (non-ODA) operations, will finance the project. The Kohat tunnel constitutes an integral part of the Indus Highway (N-55), which is one of the vital trunk roads in the country. The tunnel is 1.9 kilometre-long, the longest roadway tunnel. It will be equipped with latest facilities like ventilation system, lighting, safety system, main power supply and control plus operation system. When this project is completed and the tunnel is commissioned, transportation between Peshawar and Kohat will become safe and efficient. The government of Japan has also contributed to the improvement of the Indus Highway itself by providing $475m loans since 1989. The assistance to ongoing projects has been kept out of the purview of the economic measures that were taken in the wake of nuclear tests conducted by Pakistan in May, 1998. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010725 ------------------------------------------------------------------- 21 EoIs received for 26% govt shares: UBL privatization ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 24: The Privatization Commission has received 21 expressions of interest (EoIs) from world's strategic investors for pre-qualification to participate in the privatization of United Bank Limited (UBL), an official announcement said. The government plans to sell a minimum stake of 26 per cent of the government share-holding to a quality strategic investor and transfer management control. UBL is one of Pakistan's three leading commercial banks, having a countrywide and international branch network. UBL has a full service licence covering commercial, retail banking, consumer and investment banking activities in Pakistan and most of the other countries where it is present. UBL has an extensive domestic network consisting of around 1,400 branches with a market share of nine per cent. UBL operates a focused international network of branches in UK, US and UAE, Yemen, Bahrain, Qatar and export processing zone of Karachi, operating a joint venture- Oman United Exchange Co, Oman Muscat and a subsidiary - United Bank A.G. Zurich, Switzerland and has representatives office in Cairo, Egypt and Tehran. Iran UBL has over 11,000 employees. The parties who have submitted their EoIs include seven from Middle East, four from UK, two from US and eight from Pakistan. The parties are: Aqeel Karim Dhedhi Securities (Pvt) Ltd, Central Insurance Company Limited (a Dawood Group company), Fauji Foundation, Pakistan and Amsterdam Trust Corporation (ATC) (Netherlands), M. Abdullah & Associates, Instituted of Overseas Pakistanis, Invest Capital Securities (Pvt) Limited, Muslim Commercial Bank, Union Bank Limited, A.R.Y Traders (UAE), Abu Dhabi Group (UAE), Bank Dhofar Al-Omani Al- Fransi (Oman), Ban Muscat (Oman), Dalik International (Bahrain) Jawed Textile Mills Companies (E.C)(Bahrain), Naseer Abdullah Hussain Lootah Group of Companies (UAE), Ahmed & Nabi McMullen (Accountants and Tax Consultants)(London), Akhter Group PLC (London), Bestway (holdings) Limited (London), M.M.Sharif & Associates (London), IFS INC. (USA) and SB Technologies LLC. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010723 ------------------------------------------------------------------- US power firm may pack up ------------------------------------------------------------------- By Khaleeq Kiani ISLAMABAD, July 22: A Washington-based power company, pursuing two projects involving $1.5 billion investment, may wind up its operations here following discouraging signals from WAPDA about its future, Board of Investment (BOI) sources told Dawn. In a last-ditch effort to save its initial investment and future operations, the company has brought the whole issue to the knowledge of President Pervez Musharraf, the finance minister, and secretaries of water and power and BOI, they said. Documents made available to Dawn revealed that Synergics Energy Development, a subsidiary of Voith Siemens Hydro Group, had taken in hand $110 million Matiltan Hydropower Project in NWFP and $1.38 billion Kohala Hydropower Project in Azad Kashmir. The federal government had issued letter of support (LoS) for the construction of 84mw Matiltan project and Letter of Intent (LoI) for conducting feasibility study of 740mw Kohala project, that now stands completed. Both the letters are still valid and intact. Under the president's initiative to attract foreign investment in water storage and hydropower projects, WAPDA wrote a letter to Dr Hermut Kormani, the Germany-based chairman of Voith Siemens Group, to undertake Matiltan project at a tariff offer of 4.3 cents per unit besides Kohala project and a list of 16 other major projects for further investment. When the company approached WAPDA in Lahore for Matiltan project it was told that a tariff of more than 3 cents per unit (1.3 cents per unit lower than earlier offered by WAPDA itself) would not be acceptable. The BOI sources said perhaps WAPDA was unaware that Voith Siemens was the parent company of Synerigcs that already had an LoS for the same project. The company also complained that it spent about $6 million on the completion of detailed engineering study of the Kohala power project but its contents were being given to other power companies by WAPDA. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010722 ------------------------------------------------------------------- PR seeks joint venture for telecom network ------------------------------------------------------------------- Staff Reporter LAHORE, July 21: Pakistan Railways has sought a joint venture with foreign telecommunication companies for developing a private sector telecom network to compete with the Pakistan Telecommunication Corporation Limited after its privatization. This was stated by the Federal Railways and Communications Minister, Javed Ashraf Qazi, while talking to reporters at the PR headquarters on Saturday. Under the proposed arrangement, he said, the foreign telecom firm would contribute in the form of capital investment and technical know-how while the railways' equity would be in the form of right of way for laying optical fibre cable along the rail track. He said the proposed network would replace railways decades old micro-wave telecommunication network apart from competing with the PTCL in the private sector. He said the railways ministry had already published an advertisement to invite proposals from the multi-national companies. Replying to a question, he said negotiations were under way between the technical experts of Pakistan Railways with a Chinese firm to finalize an agreement in the railway sector. He said two PR teams had already visited China to ascertain details of the equipment being offered in the package. He said the package also included 59 new locomotives along with the transfer of technology. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- More PTCL bandwidth for Internet service ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 25: Pakistan Telecommunication Company (PTCL) has leased STM-1 (155Mbits/s) IP bandwidth from Karachi to USA through Singapore Telecom to meet the Internet bandwidth requirement in Pakistan. A press release issued here on Monday said that the connectivity had been established using the SEA-ME-3 optic fibre cable system from Pakistan to UK with onward trans-Atlantic extension crossing No.1 System. The step has been taken on the direction of Federal Science and Technology Minister Prof Attaur Rahman, who has instructed the PTCL to take steps to rule out service break and ensure 100 per cent restoration and backup service. To ensure continuity of services and availability of bandwidth in case of submarine cable faults, the PTCL management has decided to convert the existing SEA_ME-We-3 STM-1 capacity to a fully restorable capacity. This will involve an additional investment of $4 million per year. The arrangement will reduce the down time to hours instead of days which are required to repair the submarine cable system faults. According to Singapore Telecom the restoration shall be arranged by them for PTCL within six weeks. Prof Rahman has also instructed that arrangements should be planned to add 34Mbits/s of IP bandwidth via satellite links. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010724 ------------------------------------------------------------------- Mineral development body to be set up soon ------------------------------------------------------------------- By Intikhab Amir PESHAWAR, July 23: The NWFP government will shortly set up a Mineral Investment Facilitation Authority (MIFA) in line with Islamabad's instructions to boost mineral sector, official sources told Dawn. Preliminary work for the establishment of the Authority had already been completed and the same would be notified after approval by the provincial governor, sources said. In accordance with the federal government's June 4 decision all the four provinces, Azad Jammu and Kashmir, Federally Administered Tribal Areas (Fata) and Northern Areas of the country would set up MIFA to encourage investment in the mineral sector, according to official sources. The 11-member MIFA would comprise two members from the private sector and nine from the public sector including a representative of the environment protection agency, chairperson of the provincial mineral development corporation, secretaries of forest department, finance department, mineral development department, the additional chief secretary or his representative, minister for mineral development. The provincial governor would head it. "Four names from among the private sector's stake-holders have recently been forwarded to the governor of which two would be taken on the MIFA," a senior official of the provincial government said. After the approval by the provincial governor, the sources said, the proposed MIFA would be notified. The Authority, would improve mineral and mining related regulations besides doing regular monitoring of the mining activities. A four- member executive committee would also be established to facilitate the MIFA by making ground work for taking decisions for the promotion of mineral sector and mineral programs of the government and public sector in the province. The executive committee would be headed by the provincial minister for mineral development and the other three members, to be take from the MIFA would comprise secretary of mineral development department and two representatives of the private sector. The committee, sources said, would do the spade work for the MIFA. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Pakistan economy faces four risks ------------------------------------------------------------------- Staff Reporter ISLAMABAD, July 25: Pakistan's economy faces serious challenges chief among them are four major risks emanating from a variety of internal and external sources, according to World Bank's latest progress report: "Pakistan Country Assistance Strategy" (CAS). First, to restore business confidence and build a sound basis for economic growth and poverty reduction, effective economic reforms are needed across a wide range of sectors. Since these reforms challenge existing economic interests, a major risk is the commitment to the required pace and sequencing of macroeconomic and structural reforms. There are differing views in Pakistan on the need to deregulate and privatize all public enterprises, such as the utilities, due to a slowly changing conviction that privatization is the solution to these enterprises' problems. The risk of some reversal - particularly of the far-reaching governance reforms and proposed devolution plans - remains since this government's term in office ends in eighteen months, and there is no clear indication of who will be the standard bearer of these fundamental institutional reforms. This risk may be mitigated by the government's intentions to communicate more actively its reform plans and actions to date with the population at large, in order to sustain the reforms beyond its mandate. "There is also a risk that the devolution plan - if hastily implemented and if captured by the powerful interest groups - might lead to more problems," the report said. A second risk is social discontent, arising from the difficult economic situation, and tough adjustment measures needed to address the balance of payments crisis. A third major risk relates to Pakistan's ability to finance its balance of payments in the face of its very weak, vulnerable starting point (extremely low reserves, a large debt burden, and poor export performance), as well as uncertainties about the balance of payments financing plan beyond 2000-01. "Investment climate and adherence to the reform program is nonetheless crucial to restoring private sector flows." Slippage in reform implementation or inadequate macroeconomic policies, weaker foreign demand for key Pakistani exports, domestic agricultural supply shocks, or other developments could lead to a situation where Pakistan may find it difficult to service its debt with all creditors. The military itself may balk at lower defence expenditure. Continuous dialogue with the government and close scrutiny of Pakistan's public expenditure will mitigate this risk. "Lastly, an added risk is the implication of the December 1999 Supreme Court decision regarding the implementation of the Shariah code to all financial transactions. "World Bank Group officials have raised with the authorities the possible consequences for both domestic and international contracts. A task force with the Ministry of Finance and a "transformation commission" with the State Bank of Pakistan are working on the policy guidelines and technical measures - with IMF technical assistance - to ensure a smooth transition. Meanwhile, the government has given assurances to the Bank Group and all its development partners that adopting such a code would not undermine business confidence, detrimentally affect business contracts, or deter foreign private investment. While the risks involved in supporting Pakistan's poverty reduction strategy are significant, it is the management view of that they are less than the risks of not supporting such a program in view of Pakistan's high incidence of poverty and the political risks of sustained high poverty incidence for the country. A social discontent like that experienced by some countries during the East Asian crisis would have disastrous economic, social, and possibly political consequences for Pakistan given its much weaker economic and social foundation. Several factors (including approaches taken by the Bank) mitigate the risks. Perhaps most important, reform program that has underpinned the Poverty Reduction Strategy for Pakistan (PRSP) is both comprehensive and "home-grown" in nature, and the plans for implementing it have been worked out by the government with due attention to political realities and implementation capacity. To manage risks, and in a radical departure from the past, the government has carried out extensive consultations during the preparation of its reform agenda to ensure legitimacy and widen support. "A second mitigating factor is our intensive monitoring of reform implementation along with maintenance of an active policy dialogue led from the field by the country director to encourage effective, sustained implementation of reforms and keeping to financial discipline". A third mitigating factor is the comprehensive response strategy adopted by the Bank in coordination with the IMF and ADB in the 1999 CAS progress Report. The key feature of third response is a series of one-tranche adjustment operations with all required actions taken upfront, starting with the Structural Adjustment Loan (Approved by the Board on January 21, 1999) aimed at securing governance improvements in the key areas of banking, taxation, power sector, and public spending. This response strategy remains valid and will help build a track record of implementation in an overall consistent framework of reforms. Finally, to mitigate social and poverty-related risks, the Bank will be taking a multi-pronged approach, focused on improving the quality of and access to basic service delivery and promoting community-based anti-poverty initiatives. Furthermore, the Bank- supported Pakistan Poverty Alleviation Fund (PPAF) has been supporting successful NGOs to expand their mirco credit and small scale community infrastructure programs, targeted to the poor, especially women. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- PSO MD murder stirs panic-selling on KSE ------------------------------------------------------------------- Staff Reporter KARACHI, July 26: After early panic selling triggered by reports of murder of the Pakistan State Oil managing director, Karachi stocks managed to finish with clipped losses. The KSE 100-share index early was off over 12 points, the afternoon session saw some improvement thanks to stray institutional support at the dips, which allowed it to finish with clipped losses at 1,252.22. The fact that it did not breach the support level of 1,250.00 shows presence of support at the lows. It ended the day with a net fall of 6.54 points. The share value of PSO, which early dropped to the day's lowest bid of Rs.121.65 immediately after the report of its managing director, Shaukat Reza Mirza's murder reached the market, finally finished with rise of 65 paisa at Rs.124.20. However, Engro Chemical, where late Shaukat Mirza spent a major portion of his life attaining the superannuation as the chief of an expanding corporate house, remained under pressure and ended lower by 20 paisa at Rs.52.10, moving at one stage as low as Rs.51.65 on early selling. Price changes were mostly fractional barring Pakistan Telephone, which rose by Rs.5.60 on the winning side followed by Mitchell's Fruits, Clariant Pakistan and Lever Brothers, rising by Rs.1.40 to 6. Losers were led by Exide Pakistan, Noon Sugar, MFMY Industries, Orix Leasing and Javed Omer, which suffered fall ranging from on rupee to Rs.1.70. Trading volume rose to 61m shares from the previous 43m shares as losers maintained a fair lead over the gainers at 93 to 48, with 55 shares holding on to the last levels. Hubco again topped the list of actives, off 50 paisa at Rs.16.45 on 22m shares, PTCL, lower 10 paisa at Rs.15.45 also on 22m shares, PSO, up 65 paisa at Rs.124.20 on 6m shares, ICI Pakistan, lower 10 paisa at Rs.7.95 on 2m shares and Engro Chemical, off 20 paisa at Rs. 52.10 on 1.680m shares. Other actives were led by Adamjee Insurance, lower 25 paisa on 1.349m shares, MCB, firm by five paisa on 0.869m shares, Fauji Fertilizer, lower 30 paisa on 0.841m shares, and Sui Northern, easy five paisa on 0.505m shares. FORWARD COUNTER: Bulk of the activity remained confined to Hubco share, which finally ended lower by five paisa at Rs.16.90 on 1.126m shares followed by PTCL, lower 15 paisa at Rs.15.50 on 0.550m shares and PSO, up 60 paisa at Rs.124.70 on 0.199m shares. The largest fall of 50 paisa was noted in Engro Chemical, off 50 paisa at Rs.52 on 13,000 shares. Other contracts were modestly traded. DEFAULTER COMPANIES: Activity on this counter was maintained on the higher where Kohinoor Gujar Khan Mills and Colony Mills came in for actives, finishing higher by 15 paisa and unchanged at Rs.3.75 and 8.50 respectively on 5,000 and 5,500 shares respectively. For second session in a row, S.N.Kawasaki attracted selling and was marked down by 15 paisa at Rs.0.40 on 2,000 shares. BOARD MEETINGS: Knoll Pharmaceuticals July 30, Arif Habib Securities also on July 30, Century Paper and Dawood Hercules Chemicals both on July 31 and Al-Faysal Investment Bank on Aug 10.Back to the top
EDITORIALS & FEATURES 20010722 ------------------------------------------------------------------- So far so good ------------------------------------------------------------------- By Ardeshir Cowasjee Message from Delhi : One side wants an 'integrated' dialogue. The other side wants a 'composite' dialogue. The one wants to discuss Kashmir as an 'issue', if not a 'dispute'. The other does not ; it wants to talk about 'cross-border terrorism'. Which border ? The one wishes to talk of the damage to life and property inflicted by the 'jihadis'. The other says the conflict is indigenous. Point: what moral authority can be exercised over 'freedom fighters'? Atal Behari Vajpayee, prime minister of India, and his men were lavish in the hospitality they extended as hosts. Their guests gracefully reciprocated. Our man, General Pervez Musharraf, president and chief executive and chief of army staff of Pakistan, is liked by modern India. These Indians say he dresses correctly, wearing his shirt-tails tucked into his trousers, not appearing as if he has just leapt out of his bed. Our side, they say, exhibits its national spirit by letting its shirt-tails hang loose. Musharraf is blunt but luckily not blank. He addressed the media on Friday evening and his message was well received in Delhi. The press is full of quotes from his press conference. To read the Indian newspapers is a treat. We, on our side, are able to read about the happenings on Wall Street, or on the main roads of Timbuctoo, but our antiquated laws do not let us read what is said on Motilal Nehru Marg, on Akbar and Aurangzeb Roads. These latter names remain unchanged, for the Indians appear to have no qualms about the fact that they were ruled by the Great Moghuls. The Taj Mahal at Agra remains the Taj Mahal ; it has not been renamed Vallahbai Patel Mahal. The good thing is that we, the two countries, have started talking to each other and that our two present leaders do not behave like petulant spoilt kindergarten schoolgirls, There is no shouting about 'Jill has stolen my pencil so I'm going to steal her rubber.' Now, what has the Indian press said? Last Sunday's 'Statesman' (July 15), considered to be an anti-establishment paper, carried a front-page column by its editor, Cushrow Rustom Irani. His closing sentences read: "Prime Minister Vajpayee is doing what he can to help. And at least this newspaper will stand and applaud." It wants peace. In yesterday morning's 'Indian Express' came a column from editor Shehkar Gupta, which opened up: "Now you know why commandos rarely rise to the top in most armies. Relentless training makes them instinctive, decisive and aggressive but at the expense of the ability to calculate and look far ahead. Just the next objective, small even if vital, but not the big picture. Nobody knows if our leaders also came away with the same impression from the summit. But certainly General Pervez Musharraf gave some of the editors a rare insight into the working of his mind at his now infamous breakfast in Agra." He continued: "Our politicians were shocked as he held forth because they are used to seeing their own soldiers being deferential, sometimes servile. So long have Pakistanis been held hostage by military power that they love it, at least initially. That's why it is wrong to see the Pak Army and the people as two different things." Seema Mustafa in the 'Asian Age' yesterday in her front-page report from Delhi had this to say about the general's Friday evening session with the press of the two countries: "It was a masterly performance. Pakistan President General Pervez Musharraf, at his press conference, refused to indulge in recriminations, said the Agra summit was a 'good beginning,' praised, praised Prime Minister Atal Behari Vajpayee sky-high, ridiculed protocol, described cross- border terrorism as a struggle for freedom, and urged the people of India, Pakistan 'and Kashmir' to strengthen the hands of the moderates and isolate the extremists by supporting a resolution of Kashmir and bringing peace to the 'poverty-stricken and deprived people of our two nations.' He praised the media, defended his breakfast meeting with the editors in Agra, wondered why it had led to a major controversy, offered to hold a similar press meet for Mr Vajpayee on his visit to Islamabad, and strengthened his reputation for being a free, frank general committed to peace despite being a man in uniform. 'I told Mr Vajpayee that I accept there are problems for you,' he said, 'but you must accept that there are problems for me as well'." On the contentious issue of the missing salute, the same newspaper reported from Udhagamandalam, Tamil Nadu: " 'If I were in uniform, I would have saluted General Pervez Musharraf," Field Marshal Sam Manekshaw said, reacting to the controversy over Air Chief Marshal A.Y. Tipnis not saluting the Pakistan president during his recent visit." And from Islamabad: "Pakistan president General Pervez Musharraf on Friday night said he was the first to salute Prime Minister Atal Behari Vajpayee when he arrived at the Punjab governor's house in Lahore in March 1999." Yesterday's banner headline in the 'Hindustan Times': 'Pervez plays both statesman and hawk'. On Friday evening, whilst Musharraf was speaking at his Islamabad press event, I was dining in the company of Fali Sam Narriman, India's top-notch lawyer; the erudite Khushwant Singh, a man who needs no introduction, a man who is still laughing though well into his eighties; Lt-General Ardeshir Meherji Sethna, a former vice- chief of the Indian army staff; Admiral Ram Tahiliani, a former chief of naval staff. The admiral told me how at one point in time the three service chiefs of secular India were army General Melhotra, naval Admiral Ronald Pereira, and Air Chief Marshal Latif. We all drank a toast to 'peace in India and Pakistan and Kashmir, and goodwill to all men.' DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- To what uses this eloquence? ------------------------------------------------------------------- By Ayaz Amir After the confusion which marked the early stages of his rule, Pakistan's soldier-president has finally discovered his forte: the extended press conference. It is a sign of the confidence he has acquired, and the awkwardness he has shed, that he prefers his press conference live. And he prefers it long, cooking over a slow fire. If commando training emphasizes endurance, it takes little imagination to see from where comes this tendency. Who would have thought he would be a natural with this? But he is: speaking easily and handling questions, even difficult ones, with aplomb. Nor is he a boring speaker. The tedium comes when he stops looking at his watch. In many things, as men and women of the world would acknowledge, length is a virtue, in others a heavy cross to carry. Even so, in his chosen medium of the press conference, Musharraf is the best speaker Pakistan has had since Zulfikar Ali Bhutto. He is also a more down-to-earth speaker than the Pride of Asia (one of the many titles bestowed on Bhutto by a grateful populace) who was inclined to rely on generous amounts of fiction to embellish his public utterances. Not that General Musharraf is a Quaker who speaks always on oath. He would be a poor ruler to do this. But he gives the fiction treatment only to a few chosen subjects, those the closest to his heart: his government's achievements and the wonderful things likely to accrue from devolution. Make-believe in such small doses is pardonable in a leader. The larger question is altogether different. Backward countries like Pakistan face problems of development, not eloquence. When they get leaders who start liking the sound of their own voices, the danger is real of the medium becoming the message, of words filling in for action. The circus function of government then becomes more important than the prosaic and harder task of solving everyday problems. Who in the post-colonial era have been the great exponents of Third World righteousness? To name a random few: Nkrumah, Sukarno, Nasser, Ben Bella, Nehru and, a bit later, our own Bhutto. All of them dashing and romantic figures abroad, failures at home. While each had his achievements, in the scales failure would perhaps outweigh success. Eloquent leaders who have also been men of action constitute a thinner list. Castro comes to mind and, at an altogether different level, Lee Kuan Yew and Mahathir Muhammad. In what category to place General Musharraf? His foremost achievement so far is the consolidation of his rule - not too difficult a task given the army's backing and the opposition of such fearsome luminaries as the Sharifs, Benazir Bhutto and the unshaven monks of the Alliance for the Restoration of Democracy. Given these factors, Musharraf would have had to be spectacularly inept to get the business of consolidation wrong. For the rest what has he to show for himself? Alas, very little. Army monitoring - of the country, the economy, the districts - may not have been a disaster but it's been a pretty limp affair. While being quick at taking up different initiatives like ending smuggling, recovering bad loans, documenting the economy, etc, the military government has been equally quick in abandoning them in the face of resistance or after realizing that things simple on paper were more complicated on the ground. Regarding the economy, the statistics spun out by Shaukat Aziz may be music to the IMF's ears but they leave most Pakistanis cold. And who is to blame them when the cost of living is constantly on the rise, investment has all but dried up and no jobs are available? Sure, a stagnant economy is not susceptible to instant or magical cures. But then army rule at a minimum should have meant an improvement in public services - better administration, less corruption, less police highhandedness. Can anyone honestly say this has happened? What are we left with then? Merely the echo of the hackneyed phrase that General Musharraf has become increasingly "media-savvy" of late. Good for him that he has. But of what consolation to the people of Pakistan is his increasingly effective handling of the media? How does it affect their cost of living? How does it improve the functioning of the local police station? Or take Agra. The General argued Pakistan's case on Kashmir effectively, perhaps better than most leaders before him. With the media he was a hit. Despite the lack of a declaration, Kashmir was placed firmly on the center table, which is exactly what Pakistan wanted. However, statesmanship is not only about mounting the rooftops and beating one's drum. Ultimately, it is about realizable solutions. After Agra, is Pakistan any nearer getting India to accept its stand on Kashmir? Can the hope be entertained that next time round India would be more amenable to its point of view? If not, what purpose is served by further steps along the road of reiteration? Rhetoric has its dangers as much as its uses. As an end in itself it becomes an exercise in self-deception. Let us also remember that foreign policy is the last, and quite often the first, refuge of Third World despots, demagogues or military figures. When domestic problems - debt, crumbling infra- structure, corruption, mal-administration - are found to be intractable, the lure of playing international statesman proves irresistible. There is no shortage of monarchs and presidents in the Arab and Muslim world who play this role to the full, none more so than the most ineffectual of them all, Yasser Arafat, who, in Edward Said's words, flits from capital to capital on one pointless state visit after another to prove his supposed standing as Palestinian president. Pakistani leaders have also been assiduous globe-trotters, the more keen on foreign travel the more ineffectual they have proved at home. Benazir Bhutto made a record number of trips abroad. So did Nawaz Sharif. In the short time he has been around General Musharraf has also done his fair share of foreign sight-seeing. But his India visit, under whose cover he made himself president, has been his most important and most fruitful. It was a visit during which the general was not patronized by his hosts nor read lectures by them in democracy or stability as was the case with some of his earlier forays on to the international stage. He went to India as an equal and in pursuit of a worthwhile objective: getting Indo-Pak relations moving again. His reception in India, the way his visit became a media event and how he put across the Kashmir case has reinforced his standing as a leader. For providing him this opportunity he has reason to be thankful to Mr Vajpayee. But what does General Musharraf's new-found confidence and "media- savviness" mean for Pakistan? It means the obvious: an extended presidential term and a new system whose foundations - in the form of local elections and election of army-approved nazims and naib nazims - are already being laid. These are not signs of an early exit. On the contrary, they hold the promise of a long haul. Take your pick out of what is on offer. Musharraf is a liberal which, for those of the same persuasion or for those who think that Pakistan can do without more of mindlessness and bigotry, is the good thing about him. But as his record thus far proves, he is no radical reformer, his socio-political instincts being those of the institution which is the source of his power. Furthermore, the political system whose scaffolding he is erecting is a throwback, minus the suppression of the press, to the Ayubian model. Pakistan could have done without this regression. The Ayub model did no good to Pakistan and in fact sowed the seeds of future disasters, including the secession of East Pakistan. There is no iron law which says that history repeats itself in all particulars but it is disquieting enough to realize that we are again treading a path we have traveled before. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- The view from Harding's Point ------------------------------------------------------------------- By Irfan Husain >From where I sit writing this, I can see the American state of Maine across Passamaquoddy Bay in St Andrews, New Brunswick. There are pine-covered islands dotting the bay,and occasional boats cruise past where we are staying at Harding's Point. But even this remote and utterly lovely Canadian resort town of 1,500 people (2,500 in the summer) has not escaped the echoes of the failure of the Agra summit. The media here usually does not cover much more than the local gala or the story about a pet cat being stranded in a tree, but even they gave the odd column to the Indo-Pak talks and their background. And after they collapsed, neighbours commiserated as though I had suffered a personal loss. And in a sense I suppose I have. While many of my more cynical colleagues had predicted that the summit would not yield any results, I had allowed my optimism - normally kept under a tight leash - to run away with me, and suggested that while there would be no immediate breakthrough over Kashmir, there would be agreements over a range of peripheral issues like trade and travel. In the event, only the hawks on both sides have emerged happy with the outcome. Unfortunately, their triumph is South Asia's collective setback. However, going through different accounts of the talks on the Internet, I was struck by their uniform sense of disappointment and sorrow over the wasted opportunity. The western media expressed relief that the summit had taken place at all, and expressed the hope that this would be the first in a series of top-level meetings. Indian journalists were more concerned with the details of how and why the talks failed without automatically blaming the Pakistani side. And the fact that the foreign ministers of both nations have chosen to remain upbeat about future prospects indicates that the recent failure in Agra could well translate into a more positive outcome later on. With the benefit of hindsight, I suppose it is easy to say that given the magnitude of the gulf between India and Pakistan, peaceniks like me were naive in assuming that either side would show much flexibility in the beginning. The hardliners in both camps are too well-entrenched, and their vested interests too deeply embedded in state policy to permit the kind of concessions needed for a breakthrough. An allied factor on the Pakistani side has been the role of the jihadi organizations. By escalating the fighting in the days leading up to the summit as well as during the talks themselves, the lashkars not only flexed their muscles, but also indicated their complete rejection of the peace process. The problem is that if India and Pakistan do reach a negotiated settlement, these outfits will be the biggest losers as they will not only be deprived of funds and arms, but will be rejected by the Kashmiris themselves. So, despite their rhetoric, they have a vested interest in continuing the fighting. The unaudited secret funds and public donations currently keeping them afloat are financing a lifestyle among top jihadi leadership that they would be loath to give up if and when the bloody uprising stops in the wake of an Indo-Pak agreement. So they will continue insisting on an all-or-nothing solution while sabotaging any compromise formula. If it is elements like these that Musharraf has to contend with, Vajpayee is not without his extremist detractors. Already there are calls from within his BJP coalition advising him not to accept the Pakistani invitation to visit Islamabad later this year. The Pakistani take on why there was no agreement on a joint declaration is that elements in the Indian delegation prevented a draft approved by Musharraf and Vajpayee from being signed. Whatever the real reasons underlying the failure of the two sides to agree even upon an anodyne joint declaration, it seems clear that there are deep divisions and fissures on the Kashmir issue at the policy- making level in both countries. Again in retrospect, it is easy to see why the gulf between the two is wider than ever: Pakistan wants nothing less than to change the status quo through negotiations while India seeks to maintain it at all costs. And the costs are escalating as the recent casualty figures show. Pakistani analysts at GHQ probably calculate that by supporting the jihadi lashkars, they will keep things on the boil without inviting retaliation. This will force India to the negotiating table, apart from keeping the Kashmir issue alive in international forums. But this strategy has given these outfits growing clout within Pakistan, and more and more, the tail is wagging the dog. The view from New Delhi is more global, given India's regional and international ambitions. Indian analysts recognize that it will not be accepted as a major player until the volatility on its borders subsides. Given the two countries' nuclear capabilities and the region's perennial no-peace, no-war status, significant foreign investment will remain wary. Pakistani planners have a more immediate concern; how to avoid fiscal meltdown, given the economy's poor performance combined with the massive debt servicing bill as well as the unending drain on our resources imposed by defence. If we are to kick-start the economy, settlement of the Kashmir issue is an unavoidable first step. So the good news is that both countries are under different compulsions to normalize relations. These factors need to be kept in the forefront when Mr Vajpayee and General Musharraf next meet in New York at the UN General Assembly session in September. As they have already spent over ten hours in one-on-one talks in Agra, they will have a broad consensus as well as good personal chemistry to build on. In this sense, the recent summit can be seen as a positive first step since, hopefully, the two leaders will not need to go over the ground they have already traversed. These are difficult times for both countries. They are both having to confront deeply held prejudices and question decades-old policies. In a sense, their maturity and self-confidence is being tested as never before. Against this background, the temporary setback in Agra should not have surprised us. Having thought about the recent events in the subcontinent away from the media hype and the general disappointment, one can come out of one's immediate gloom and be more optimistic about future contacts and talks. A couple of days ago I got an e-mail from my son Shakir in Karachi, saying that I should have been in Agra these last few days. "What?" I asked him, "And missed the lobster boil at the beach this evening, and the whale-watching expedition tomorrow?" The subcontinent's problems are so intricate that I can easily take a few weeks off and not miss anything.
SPORTS 20010725 ------------------------------------------------------------------- Pakistan Veterans team for India announced ------------------------------------------------------------------- KARACHI, July 24: Former Test captain Majid Khan will lead a 15- member Pakistan veterans cricket squad on the tour of India in October, Pakistan Veterans Cricket Association announced. The squad includes 12 ex-Test players, including former Test skippers Zaheer Abbas and Javed Miandad. According to the program, Pakistan veterans will play five one-day internationals and an exhibition match during their visit to India from Oct 17 to 29. Squad: Majid Khan (captain), Zaheer Abbas (vice-captain), Javed Miandad, Abdul Qadir, Saleem Yousuf, Ashraf Ali (wicket-keepers), Sikander Bakht, Ijaz Faqih, Azhar Khan, Mansoor Akhtar, Jalaluddin, Ali Zia, Raees Ahmed, Rashid Khan and Ashraf Pakhali. If Javed Miandad and Abdul Qadir are not available for the tour their places will be taken by Mian Pervez and off-spinner Tauseef Ahmed. Former Test wicket-keeper Shahid Israr will be the team manager.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010727 ------------------------------------------------------------------- Azam, Haider, in top four ------------------------------------------------------------------- KARACHI, July 26: Azam Khan, Haider Ali, Osama Khan and Karamatullah made the top four league after winning their matches in the preliminary squash trials for SAF Games/ World Championship at PIA's Jahangir Khan Squash Complex. Sindh Squash Association is conducting these preliminary trials to pick two Sindh players to appear in the final trials for the selection of SAF Games being held in Islamabad and World Team Squash Championship in Melbourne (Australia) later this year. The second phase of pre-qualification trials under auspices of Pakistan Squash Federation will be held at the same venue from August 1-7. Eight players picked after first phase of trials from four provinces will appear in the second stage. The final trials will be held in September after which four- member Pakistan squad for SAF Games and World team championship will be formed. In the league of four, Azam Khan beat Haider 11-15, 15-9, 15-10, 15-9 and Osama Khan don Karamatullah 9-15, 15-11, 15-6, 6-15, 15-9. Third round results: Azam Khan bt Jahangir Khan Jr 17-16, 15-11, 15-3, Osama Khan bt Shahroze Khan 17-14, 15-12, 15-12, Haider Ali bt Tayyab Habib 17-15, 15-12, 15-12 and Karamatullah bt Tahir Khan 15-10, 11-15, 12-15, 15-10, 15-7.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010726 ------------------------------------------------------------------- Pakistan make one change for Azlan Shah tournament ------------------------------------------------------------------- By Shazad Ali KARACHI, July 25: Mohammad Khalid Jr staged a comeback into the Pakistan squad for next month's Azlan Shah hockey tournament, while few deserving youngsters still await for the selectors nod. Lightly-built left-winger, Khalid, who has replaced Naveed Iqbal, was the only change when the Pakistan Hockey Federation (PHF) announced an 18-member squad for the seven-nation Aug 2-12 contest in Kuala Lumpur. Although selectors took a belated step towards the right direction by axing Naveed, light-footed right-winger, Sameer Hussain, once again failed to catch selectors eye. Axed from the squad after the Sydney Olympics, Sameer had proved his mettle and performed outstandingly during the President's Gold Cup staged in Karachi in May. He was replaced by mediocre right-out Mohammad Irfan when the team was named for the May-June-July tours to China and Europe. Justice would have been done had Sameer been preferred over Irfan. Another talented striker Haider Hussain could not make into the squad, while experienced brothers, Yousuf and Imran, were overlooked and rookies Dilawar Hussain and Ghazanfar Ali were retained. President of the PHF, Lt-Gen Aziz Khan, said the selection was made on the recent performance of the players in the various domestic tournaments and the tours abroad. ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
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