------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 30 June 2001 Issue : 07/26 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Governors authorized to amend laws + �India interested in soft border option on Kashmir' + SHC reserves order on admissibility + SC reserves verdict on plea against mly rule + LHC rejects pleas against Musharraf's presidency + APHC blasts exclusion from talks + Delhi rules out role for APHC + President to aim at certain framework + Kashmir solution according to Simla accord demanded + PML wants visit cancelled + Asif blasts politicians for meeting president + Leaders extend support to CE: Kashmir to be main issue at summit + ARD to boycott meeting with CE + Accord on Siachen pullout likely + NSC to keep vigil on future setup: Constitution to be amended + Assumption of presidency a 'step backward': report + PML-N to weigh options at July 5 meeting + Azhar directs party leaders to be ready for elections + Delhi visit extended by one day + 'LoC should not be accepted as border' + Musharraf's fate hinges on visit: Beg + Provincial local govt commissions to be set up + Cabinet reshuffle on the cards + Azhar sees no civilian setup in near future + Assumption of presidency a 'step backward': report + Lifting of US curbs backed + Democracy sanctions to continue: US + Musharraf, Vajpayee urged to agree on N-freeze + Nuclear deterrence vital to security: Musharraf + Pakistan, India need nuclear safety: report + Pakistan had N-arsenal in '89, says Beg + Justice Qayyum resigns + It is early retirement that Qayyum has sought + Benazir sceptical of summit dialogue + Benazir seeks world pressure for fair polls + Benazir meets Paris Bar chief + PIA's overall aviation policy being reviewed + Rehmat Shah Afridi sentenced to death + Anti-Terrorism Act to be amended soon --------------------------------- BUSINESS & ECONOMY + Domestic debt increased faster in 2000-01 + Rs71bn Sindh budget carries no new tax + Rs27bn budget for Balochistan + 27 taxes go in Rs128bn Punjab surplus budget + NWFP unveils Rs44bn budget for 2001-02 + Last KSE session of current fiscal ends on dull note --------------------------------------- EDITORIALS & FEATURES + 'Bania, mooch nichi' Ardeshir Cowasjee + The general as president Benazir Bhutto + Being nice is not the point Ayaz Amir ----------- SPORTS + Pakistan squander two-goal advantage + Pakistan leapfrog into second place + Inzamam gets two matches suspension + Waqar asked to carry on as captain + Waqar re-emerges as one of the greatest bowlers + Former official criticizes Pakistan Tennis Federation

Governors authorized to amend laws

ISLAMABAD, June 29: President and Chief Executive Gen Pervez
Musharraf on Friday empowered the governor of a province to alter,
amend or repeal laws and ordinances.

Gen Musharraf, in exercise of the powers conferred by Article 5 (1)
of the Provisional Constitution order No.1 of 1999, and in exercise
of all other power enabling him in that behalf, "has authorized the
governor of a province to alter, amend or repeal any laws and
Ordinances," said a notification of the cabinet division here.-APP

'India interested in soft border option on Kashmir'
By Syed Talat Hussain

ISLAMABAD, June 28: India seems willing to seriously take up the
soft-border option on Kashmir to pave the way for meaningful
engagement with Pakistan, diplomatic sources interacting with both
Islamabad and Delhi told Dawn.

"There is a strong policy interest in Delhi which is willing to
accept a solution to Kashmir short of its absorption in the Indian
Union. If both sides of Kashmir are granted maximum autonomy, with
the leaders of Kashmir joining hands to support a transit point of
healthy diplomatic and trade interaction between India and
Pakistan, Delhi may be happy with this arrangement," the sources

The sources admitted however, that Kashmir's special status and the
Indian legislative assembly's resolution on the territory
reiterating this to be part of India posed formidable problems in
the implementation of this scheme.

"It is doubtless that even the soft-border option is problematic,
but under the circumstances it will suit India's position because
it does not involve any fundamental compromises on its stand that
Kashmir is its part," the source said.

The other incentive for India is that the peace dividend. Reduction
of violence and curtailment of militancy should help India focus on
better concerns like asserting its role as a major world power at
par with Japan and China, the source added.

The source also said that a de facto maximum autonomy plan for
Kashmir has found some favorable reception in Pakistani
establishment. "We sense that the reality is being acknowledged by
some members of the Pakistani decision making setup that the
alternative to showing flexibility on Kashmir is more instability
and retarded economic growth.

India is not going to hand Kashmir over to Pakistan. No matter what
may happen. This has become increasingly clear after Kargil war.
There are limited options available and both countries have to work
with these," the source said.

SHC reserves order on admissibility
Staff Reporter

KARACHI, June 28: A division bench of the Sindh High Court (SHC)
reserved order on a petition in which the assumption of office of
the President by General Pervez Musharraf has been challenged.

The bench, comprising Chief Justice of the SHC, Justice Saiyed
Saeed Ashhad, and Justice S. Ahmad Sarwana, had taken up the
petitions of Sohail Hameed advocate and Gul Mohammad Hajano.

The bench directed the petitioners to submit, within ten days, a
copy of the judgment of the Lahore High Court - in which the
assumption of office of President by Gen Musharraf had been
justified. It fixed the next hearing for July 10.

SC reserves verdict on plea against mly rule
By Shujaat Ali Khan

LAHORE, June 26: A Supreme Court bench reserved its order on a
petition seeking termination of military rule and a declaration to
bar future military interventions.

The bench comprising Justices Sheikh Riaz Ahmad, Mohammad Arif and
Qazi Mohammad Farooq wound up hearing amid protests by petitioner
Pakistan Lawyers Forum's counsel, A.K. Dogar, that he wanted at
least 10 days to fully argue his case.

The bench observed that it had fully understood his arguments and
the case law cited by him has been taken note of. After hearing the
lawyer, the bench told him that it has other matters to dispose of.

LHC rejects pleas against Musharraf's presidency
Staff Reporter

LAHORE, June 27: The Lahore High Court summarily dismissed three
writ petitions challenging the assumption of the President's office
by Chief Executive Pervez Musharraf.

The petitions were filed by Advocates MD Tahir, Amir Sohail and
Hanif Tahir. The first-mentioned two argued at some length while
the last-mentioned told Justice Khalilur Rahman Ramday, who heard
the petitions, that he had reservations about him on account of his
pro-government sympathies but would, instead of seeking transfer,
leave the matter to his conscience.

Advocate MD Tahir said frequent military interventions, prompted by
politicians and invariably condoned and validated by the judiciary,
have greatly damaged Pakistan in all spheres of life.

Advocate Amir Sohail submitted that the Supreme Court recognized
Gen Pervez Musharraf as chief executive for three years and his
elevation to the office of President was repugnant to the SC
judgment in Zafar Ali Shah's case. Under the judgment and the
provisional constitution order validated by it the country is to be
governed as nearly as possible in accordance with the provisions of
the 1973 Constitution. Mr Rafiq Tarar could not have been removed
except by impeachment.

Justice Ramday observed that the 1973 Constitution was in existence
by virtue of the PCO as amended from time to time and dismissed the
three petitions.

APHC blasts exclusion from talks

NEW DELHI, June 29: All Pakistan Hurriyat Conference reacted
angrily on Friday after both India and Pakistan snubbed its bid to
play a part in their summit.

Yasin Malik, a leader of the All Parties Hurriyat (Freedom)
Conference (APHC), accused Pakistan's president of "ditching the
Kashmiris when it matters most" and said there could be no results
from a summit which excluded their representatives.

President Musharraf told foreign journalists that he would like to
see Kashmiri representatives - and particularly Hurriyat - "coming
on board at some stage". However, before that, since it is the
Indian stance that they would not like to talk to the APHC and they
only want to talk to Pakistan, we show flexibility, the President

Delhi rules out role for APHC

NEW DELHI, June 28: New Delhi reaffirmed that the Hurriyat
Conference would not be involved in next month's summit between
Pakistan and India.

A foreign ministry spokeswoman said the Indian government's
position on participation of the All Party Hurriyat Conference
(APHC) had been conveyed to Pakistan. "They (the Hurriyat) have no
role to play," the spokeswoman said.

"The Pakistan side is fully aware of our views. Let us see what
happens," she said, in response to a query on whether President
Musharraf could possibly meet the Hurriyat leaders.-AFP

President to aim at certain framework
Staff Reporter

ISLAMABAD, June 28: President and Chief Executive Gen Pervez
Musharraf said that he would look for a "certain framework" to
resolve Kashmir issue during his summit with the Indian prime

"During my talks with the Indian prime minister, I would call for
having certain framework for the resolution of Kashmir problem. I
would also urge the Indian leadership that dialogue must continue
under certain framework," President Musharraf was quoted by Kashmir
Affairs Minister Abbas Sarfraz Khan as having stated at the
former's meeting with Kashmiri leaders.

Mr Khan told a press conference that all issues, including Siachen,
could also come up for discussion during the meeting between the
two leaders on July 15 and 16.

Kashmir solution according to Simla accord demanded
Staff Reporter

ISLAMABAD, June 28: President Awami National Party Asfandyar Wali,
the only ARD party to attend the all parties conference convened by
Gen Musharraf seeking mandate for talks on Kashmir, called for the
resolution of the Kashmir issue in the light of Shimla Accord.

Talking to Dawn by phone he said he objected to the government's
decision of not inviting several political leaders, including Akber
Bugti, Atta Ullah Mengal and Mehmood Khan Achakzai.

The ANP, he said, had been branded "traitor" for the last 50 years
for propagating its considered opinion that all outstanding issues
with India should be resolved through dialogue.

PML wants visit cancelled
Staff Reporter

ISLAMABAD, June 27: Pakistan Muslim League (N) said that the
boycott by the 15 component parties of 16-party Alliance for
Restoation of Democracy of all parties conference demands that Gen
Musharraf cancel his India trip and leave the matter (of tackling
bilateral disputes) to the future democratically-elected civil

A party spokesman in a statement said that the consensus decision
of the ARD not to participate in the government-sponsored APC and
its refusal to give Musharraf mandate to visit India was "in fact a
referendum of the 140 million people of Pakistan" that should be
accepted by Gen Pervez Musharraf in the best national interest.

He said that being a military ruler, Gen Pervez Musharraf's
position in the eyes of the international community including India
was very weak. He said that Pakistan wanted peaceful solution of
all contentious issues with India, but the mandate and the
authority to solve these issues must be wielded by an elected

He said: "Sincerity of Gen Pervez Musharraf notwithstanding, he
could not be given the mandate to negotiate such a sensitive issue
with India because he is a non-representative figure." The
arbitrary decisions of the former military rulers were still a
thorn in the entire nation's side, he said.

The spokesman said that the military leadership lowered the image
of the Armed Forces of Pakistan in the eyes of the nation and the
international community while all civil governments had spared no
effort to boost their image.

"If once again the present military rulers followed in the
footsteps of their military predecessors, bypassing the entire
nation and its representative political parties, it would be
another tragedy," he added.

Asif blasts politicians for meeting president
Staff Reporter

RAWALPINDI, June 28: Asif Ali Zardari, has appreciated the ARD
decision of rejecting President Gen Pervez Musharraf's invitation
and said that those who has met a uniformed president would soon

Talking to reporters at the accountability court No 1, he said that
the president had already made up his mind about leaving for New
Delhi and the consultations with the politicians just 15 days ahead
of his visit was to gather more power and prolong his tenure.

Mr Zardari declared the meeting of the religious leaders with the
president as disappointing, suggesting that "we respect few of them
but many among them are also our traitors from whom we expect

"It is unfortunate that the leaders who could not muster even 2 per
cent of votes are being invited while all the major parties are
ignored," he lamented.

However, he was of the view that Gen Musharraf's meeting with the
Indian Prime Minister Atal Behari Vajpai would also cast a
positively effect in a sense that the establishment would not be in
a position to raise eyebrows or point fingers in future whenever
any civilian government would meet the Indian leaders.

Leaders extend support to CE: Kashmir to be main issue at summit
By Ihtasham ul Haque

ISLAMABAD, June 27: President and Chief Executive Gen Pervez
Musharraf said that Kashmir would be the core issue during his
talks with the Indian leadership.

The CE assured a group of political and religious leaders that as
far as he was concerned Kashmir would be the core issue and
everything else would follow that.

Responding to the politicians' offer of complete support to his
forthcoming visit to India, Gen Musharraf assured the leaders that
he would continue to take them into confidence on all important
national issues. The president said that he was encouraged by their
support, and valued their sense of patriotism and commitment to the
cause of the Kashmiri people.

Those who attended the meeting were Mian Mohammad Azhar, Asfandyar
Wali, Aftab Ahmad Sheikh, Qazi Hussain Ahmed, Maulana Fazlur
Rehman, Sardar Farooq Ahmed Leghari, Maulana Shah Ahmad Noorani,
Hamid Nasir Chattha, Dr Tahirul Qadri, Imran Khan, Dr Abdul Hayee
Baloch, Wasim Sajjad, Allama Sajid Ali Naqvi, Mir Hazar Khan
Bijarani, Asghar Khan, Maulana Samiul Haq, Ajmal Khattak, Elahi Bux
Soomro and Fatehyab Ali Khan.

The CE said it was his belief that they were all on board the same
ship, and loved their country in equal measure. The spirit and
manner in which the political leaders had expressed their views
reflected the unity of the nation on issues of national integrity,
nuclear deterrence and national security, he added.

The president took the leaders into confidence on the schedule of
his engagements, including the list of leaders he would be meeting
during his stay in India.

The leaders unanimously endorsed the CE's decision to respond
positively to the Indian invitation. They assured him of their
fullest support in his endeavours to resolve the long-standing
issue of Kashmir with India, and prayed for his success.

They informed the president that even though they did not expect a
resolution of the Kashmir issue in just one visit, they expected
the Indian leadership to send out positive signals from the summit
which could lead to the initiation of a process for the resolution
of the problem.

ARD to boycott meeting with CE
Staff Reporter

LAHORE, June 26: Except for the Awami National Party, all other
parties in the Alliance for Restoration of Democracy will boycott
the meeting president Gen Pervez Musharraf has called to hold
consultations with leaders of various shades of opinion in
connection with his next month visit to New Delhi.

Twelve out of 16 parties in the coalition were not extended
invitation, and another party, the PML, says former Senate chairman
Wasim Sajjad and ex-speaker Illahi Bux Soomro, though invited, will
not be representing the party even if they participate.

Accord on Siachen pullout likely
By Ihtasham ul Haque

ISLAMABAD, June 25: The forthcoming summit talks between President
Pervez Musharraf and Indian Prime Minister Atal Behari Vajpaee are
likely to result in an agreement by both sides to withdraw from

The two sides, it is said, have realized that the Siachen
engagement is contributing significantly to the tensions between
the two countries as well as costing them hugely in men, money and

Military sources said that a complete consensus has emerged among
the corps commanders to resolve differences between the two
countries. The sources said that nobody should expect resolution of
major problems during the summit. "But it will be a breakthrough if
both the sides agree to continue talking," said a source. He said
that initially the focus will be on withdrawing forces from Siachen
and halting skirmishes on the Line of Control.

About the prospects of talks, the sources said, Gen Musharraf was
ready to "sell anything and buy anything" to achieve peace with

"President Musharraf and Indian premier have had telephonic
discussion three times recently. Both agreed that it was becoming
difficult to sustain their huge armies due to their economic
problems for which it was necessary to sit and negotiate and come
to terms," another source said.

The president was meeting the politicians only to convince them
that confrontation with India was causing serious economic problems
and that time had come to approach the issue on the basis of 'give
and take'. But the sources said that the politicians will be
assured that the national interest will be kept supreme by the
president during his visit to India scheduled for July 14 to 16.

It is also learnt that President's senior advisor Syed Sharifuddin
Pirzada has started an exercise to restore the defunct article
58(2) (B) in the Constitution with the provision of removing the
cabinet, or the prime minister, instead of sending the whole
national assembly packing.

The role model of late President Zia-ul-Haq will be adopted with
certain changes. "While the president will assume new powers, he
would not become a dictator like Zia-ul-Haq", a source claimed.

NSC to keep vigil on future setup: Constitution to be amended
Staff Reporter

ISLAMABAD, June 24: The idea of reconstituting the National
Security Council (NSC), for introducing stringent checks and
balances to ensure smooth running of a future political setup, is
being considered by the government, Maj-Gen Rashid Qureshi said.

Though the shape of proposed NSC had not yet been finalized because
the NRB was still working on it, a suggestion that leader of the
opposition and all the four governors should be on the National
Security Council, was under consideration, Maj-Gen Qureshi told
newsmen at a briefing.

"Even as to what should be the limitations on powers of the chief
of army staff is being studied so that a situation does not arise
tomorrow, which could have no proper answer in the Constitution,"
he said.

Gen Musharraf, in his brief statement after taking oath, had also
indicated that there should be the proper checks and balances for a
"political superstructure."

Maj-Gen Qureshi said it would certainly require amendments to the
Constitution which, he added, would be done in the light of Supreme
Court's verdict.

On the forthcoming talks with India, he said, no agenda for the
summit had been fixed. These would be non-structured talks with the
focus on Kashmir as far as Pakistan was concerned. However, any
other issue which India wanted to raise would be discussed, Mr
Mehmood added.

Maj-Gen Rashid Qureshi said that the assumption of president office
by Gen Pervez Musharraf had made no difference in the working of
the government or the powers wielded by him.

The only rationale which the two officials could offer for the
change was that after the dissolution of the parliament Rafiq Tarar
who was elected by the defunct assemblies had become untenable.
They advised the newsmen to consult legal experts when asked about
the constitutional rationale behind the change.

Newsmen pointed out that in the PCO-1 issued in 1999, it had been
stated that President Tarar would continue in the larger interest
of the country.

The PCO No 2 issued last week, enunciated that Rafiq Tarar ceased
to hold office in the larger interest of the country.

On questions whether Rafiq Tarar resigned or he was forced to leave
the office, the information secretary repeated the wording of the
amended PCO that he had ceased to hold the office.

PML-N to weigh options at July 5 meeting
Staff Reporter

LAHORE, June 24: Reiterating that it would not recognize Gen Pervez
Musharraf as the legitimate president, PML-N mobilization
commission chairman Ahsan Iqbal said the party would consider
launching a movement against the general in collaboration with
other parties.

At a press conference at his residence, he said the matter would be
high on the agenda of the July 5 meeting of the party's central
working committee.

Implications of Gen Musharraf's self-aggrandizement, his visit to
India, outcome of ARD president Nawabzada Nasrullah Khan's meeting
with the chief executive, analysis of the foreign minister's US
visit, the situation in Sindh and Balochistan, threat to the
federation and preparations for general elections would be other
subjects on the agenda.

Ahsan Iqbal said Gen Musharraf had insulted the consciousness of
the entire nation by assuming presidency. The step was all the more
objectionable because it had been taken in the 21st century when
the practice of takeovers in the African countries had been given

The PML-N leader warned against the disastrous effects on the
federation of neglecting the public opinion.

Azhar directs party leaders to be ready for elections
Staff Reporter

LAHORE, June 24: PML-QA President Mian Azhar has directed his party
leaders at all tiers to prepare themselves for the next general
elections, which the government plans to hold next year according
to the time frame set by the Supreme Court.

Very soon, he said in a statement, he would approach all important
PML-N leaders, including Javed Hashmi, to bring them to the PML-QA

The PML-QA president said he would take all steps to make his party
the strongest against all its rivals. He said the party had
effective candidates for all constituencies across the country.

Party's reorganization would also receive special attention, he
said, adding he would soon undertake a visit to all provinces for
the purpose. He was happy over the party's performance in the first
three phases of the local elections, and said between 80 and 85 per
cent seats would be swept in the fourth phase. He claimed that
district nazims would belong to his party.

Delhi visit extended by one day
Monitoring desk

ISLAMABAD, June 23: A full day has been set aside for the summit
meeting between Indian Prime Minister Atal Behari Vajpayee and
Pakistan President Gen Pervez Musharraf in Agra on July 15, sources

Gen Musharraf would be having a packed schedule during his three-
day visit to India beginning July 14, says Hindustan Times website
quoting PTI. The tentative program being finalized by the officials
of the two countries lays that Gen Musharraf accompanied by his
wife would arrive New Delhi on the morning of July 14. After a
ceremonial welcome, he would stay at the Rashtrapati Bhavan, where
he would have formal and protocol meetings with President K. R.
Narayanan, Prime Minister Atal Behari Vajpayee, opposition leader
Sonia Gandhi, home minister L. K. Advani and other leaders.

Gen Musharraf is scheduled to visit Rajghat to pay homage to
Mahatma Gandhi. He would also visit his ancestral home in New Delhi
the same day. Later, he would attend a reception hosted by the
Pakistan High Commissioner Ashraf Jahangir Qazi. The day's
activities would come to an end after attending a banquet hosted in
his honor by President Narayanan.

After an overnight stay in New Delhi, Gen Musharraf would fly to
Agra early next morning from where he would have a day-long summit
meeting with prime minister Vajpayee. The summit is expected to
last till evening and if necessary the next morning, sources said.
"The structure as well as the format has been kept wide open for
the two leaders to strike a personal rapport, friendship and
understanding," the sources pointed out.

They said a basic format about the participation of the ministers
of both the countries and top officials to assist the two leaders
at the summit has not yet been finalized. "The structure may evolve
after the first two rounds of meeting between the two on July 15th
morning," they said. Both sides have not yet decided about issuing
a joint communiqu� or address a joint press conference at the end
of the summit.

On July 16, Gen Musharraf is scheduled to fly to Jaipur, from where
he will take a helicopter ride to Ajmer Sharif and visit the shrine
of Khwaja Moinuddin Chishti. From there, Musharraf would return to
Jaipur and fly back to Islamabad.

The visit was initially planned for two days, but has been extended
by a day at the request of Pakistan government in order to devote
more time to fruitful discussions with Indian leaders, sources

'LoC should not be accepted as border'
Jonaid Iqbal

ISLAMABAD, June 23: The talks between President Musharraf and
Indian Prime Minister Vajpayee must lead to a fair and equitable
solution based on the wishes of the Kashmiri people, former foreign
minister Agha Shahi said.

He said that the issue was one of self-determination of the people,
which was an internationally accepted principle endorsed by the
United Nations. Hence the Line of Control (LoC) could not be
accepted as an international border. It would be regarded by the
people of Kashmir as the ultimate betrayal.

Agha Shahi reflected that there was an optimism about the
forthcoming talks in Pakistan, but there was also confusion.

Musharraf's fate hinges on visit: Beg
By Jawed Naqvi

NEW DELHI, June 24 The outcome of the India-Pakistan summit could
make or break the fledgling career of Gen Pervez Musharraf, who
became Pakistan's new president last week amid controversy at home
and protest abroad, senior defence analysts were quoted as saying.

They said Gen Musharraf appeared to have weakened his own hand by
assuming the office of the president, a move which must have
embarrassed even him somewhat when he received what must have been
a lonely applause from Indian Prime Minister Atal Behari Vajpayee.

"It's in Vajpayee's hands to make or break Musharraf," former
Pakistan army chief General Aslam Beg told The Hindustan Times
newspaper. There were indications on Sunday that Vajpayee may not
let down the general, not because of his newfound bonhomie with the
Pakistan ruler, but because of worries that any erosion of his
authority at this juncture could trigger an ominous political
fallout in the neighbourhood.

"If he returns empty-handed from India, that could be the end of
it," Gen Beg said in the telephone interview. "That is going to be
Musharraf's greatest disadvantage in the talks with the Indian
Prime Minister."

Provincial local govt commissions to be set up
Staff Reporter

ISLAMABAD, June 28: The federal government has decided to
constitute "Provincial Local Government Commissions" to supervise
the functioning of the local governments in each district, well-
placed sources told Dawn.

According to sources in National Reconstruction Bureau, the
Provincial Local Government Commission will be headed by a
provincial minister. The Commission will consist of two non-
executive members and two technocrats.

Giving details about the qualification of the members of the
Commission, the sources said it had been decided that the non-
executive members shall be drawn from amongst the members of the
provincial assembly including both the treasury and the opposition.

The names of the non-executive members of the Commission shall be
nominated by the Speaker of the provincial assembly. No specific
criteria has been laid down for eligibility of the technocrat
members of the Commission except that they are supposed to have
expertise in economics, law or management, the sources said.

The sources said the Commission will have the power to conduct
annual and special inspections and audits of the local governments
and submit reports to the chief executive of the province.
Moreover, the Commission will also have the power to conduct an
inquiry into any matter concerning a local government either on its
own initiative or on the directive of the chief executive of the
province by itself or through the district government.

Local govt law next week
By M. Arshad Sharif

ISLAMABAD, June 28: Local Government Ordinance 2001 is likely to be
promulgated by the respective governors of the provincial
governments during the first week of July, well-placed sources in
National Reconstruction Bureau informed Dawn.

General Tanvir Naqvi, Chairman NRB said that the Local Government
Ordinance, which will provide the legal framework for
implementation of Local Government Plan 2000, is about to be
finalised within days. Shortly thereafter, it will be promulgated
by the provinces, he was quoted as saying by the official
spokesperson of NRB.

According to the sources, the draft Ordinance is currently pending
scrutiny with the provincial governments. The provincial
governments had raised objections on certain clauses of the draft
Ordinance which were impinging upon the provincial autonomy.

The date for promulgation of Ordinance was extended on the demand
of the provinces. As soon as the final recommendations of the
provinces are received, they will be incorporated in the final
draft and then again sent to the provincial governors for
promulgation as an Ordinance, the sources added.

Cabinet reshuffle on the cards
By Syed Talat Hussain

ISLAMABAD, June 26: Only the ministers for finance, commerce,
foreign affairs, interior and population are likely to survive the
cabinet reshuffle that is on the cards, military sources told Dawn.

The reshuffle has been prepared in view of the long-term planning
the government is doing after Gen Musharraf's assumption of
presidency. "Some of the ministers have themselves asked the
president to be allowed to step down because of their political
commitments and their desire to participate in the future
democratic setup. Others have not performed up to the mark and
therefore, will be asked to leave", the sources said.

Finance Minister Shaukat Aziz has emerged as the most trusted and
important person in the cabinet, and there is a proposal to promote
him as a senior minister and also appoint a state minister for
finance, they said.

"Then Shaukat Aziz can focus on larger issues of dealing with the
donor community and others, and the minister of state can assist
him in other matters. But it has not been decided whether that
arrangement will be implemented or not," a source said.

The source acknowledged that besides getting a favorable response
from the international donor community Mr Aziz had endeared himself
to the Generals by being a strong proponent of "continuity of
reform and the present political arrangement".

The source denied the speculation that Shaukat Aziz would replace
Foreign Minister Abdul Sattar. "At this point there is no such
proposal being considered. However, every arrangement is permanent
only as long as it is delivering the goods."

Azhar sees no civilian setup in near future
By Faraz Hashmi

ISLAMABAD, June 23: President Gen Pervez Musharraf met the
President of Pakistan Muslim League (like-minded), Mian Mohammad
Azhar, and reiterated his commitment to hold general elections
before Oct 2002.

Later, talking to newsmen President Gen Musharraf ruled out the
possibility of an immediate nomination of a prime minister or any
civilian set-up.

The Muslim League president Mian Azhar said that he apprised Gen
Musharraf about the sentiments of his party members over the
dissolution of parliament. The dissolution of parliament had
created an impression that the military government had withdrawn
official patronage to the like-minded group.

Assumption of presidency a 'step backward': report
Staff Correspondent

NEW YORK, June 24: Criticizing General Pervez Musharraf's elevation
to the Presidency of Pakistan and calling it a "step backward "
from the promised quick return to democracy, the New York Times
says US must make it clear "that sanctions cannot be lifted until
more democratic progress is made."

It called on the Bush administration to press (Pakistan) "for a
return to democratic principles, and for accelerated negotiations
with India on issues that threaten the stability of the entire
South Asian region."

In an Editorial -Setback for Pakistan- the Times says "following
the dismal practice of Pakistan's previous military dictators,
General Musharraf has appointed himself president and raised
concerns that he intends to rule from that position even if an
elected Parliament and prime minister take office in 2002."

It noted that "General Musharraf says he believes in democracy, but
his actions show that it is a democracy of a peculiar sort.

Pakistan had N-arsenal in '89, says Beg

RAWALPINDI, June 26: Pakistan had completed its nuclear buildup
nine years before it exploded its first nuclear bomb in 1998,
former chief of army staff, Gen (retd) Mirza Aslam Beg said.

Beg, who was chief of the army staff in 1989, said Pakistan had
concluded by 1989 it had an adequate nuclear deterrent and did not
need to increase it. He said he believed Pakistan now had no more
than 30 nuclear weapons.

"We wanted a credible minimum deterrent and that deterrence is
related to the very minimum number of devices that we needed and a
very minimum capability to deliver those," Beg said. "And that we
achieved in 1989 when Benazir Bhutto was prime minister and that is
(still) the policy we follow," the retired army chief said in an
interview with Reuters television.

Beg said Pakistan's nuclear arsenal is completely safe both because
the National Command Authority was set up a year ago to control
nuclear weapons and because there is nothing comparable to the
warheads sitting atop US and Russian missiles.

Beg said he believed India had 60 or 70 nuclear devices by 1989 and
had continued to build a stockpile that now numbers 200.

"How many do you need? For what?" he said at his office in
Rawalpindi. "You need 10, 20, 30 - that is all that we need and
that is all we have. There is no need to add to it. I don't think
they have added any more."-Reuters

Democracy sanctions to continue: US
Staff Correspondent

WASHINGTON, June 27: The Bush administration gave its clearest
indication that democracy sanctions against Pakistan would remain
in place until the US president was in a position to certify to
Congress that a democratic process had been restored in the

The indication came from US assistant secretary of state for South
Asia, Christina Rocca, during a short address to the Pakistani-
American Congress. She said Gen Pervez Musharraf's decision to
become president had raised new questions about Pakistan's will to
return to a democratic order. However, Ms Rocca stressed that while
the US-Pakistan relationship faced problems that should not be
minimized, effort should be to initiate a process of narrowing
differences and finding ways to tackle issues that led to the
sanctions in the first place. She described foreign minister Abdul
Sattar's visit last week to Washington as a first step in this

There were differences about Afghanistan also, but both Pakistan
and the US were searching for a common ground.

Ms Rocca said the Bush administration was reviewing policy in
respect of all regions, including Pakistan. The US wanted a stable,
democratic and prosperous Pakistan, which already occupied a
central place in its region.

Pakistan ambassador Maleeha Lodhi also addressed the Pakistani
American Congress session, and made a strong case for the lifting
of sanctions. She said leaving democracy sanctions aside, which
formed only one layer of the existing curbs on Pakistan, the other
restrictions should be removed, and Pakistan expected symmetry in
the lifting of sanctions. The highest priority was revival of the
economy, and the US sanctions were an impediment in the way. "If
you can't help us, at least don't hurt us," she asked the US. She
too hoped that Pakistan and the US would look for positive anchors
in their bilateral relationship.

Ms Rocca said the US was pleased that Pakistan was following the
path of dialogue with India and also praised Pakistan's efforts at
economic reconstruction, which she said had begun to show results.

Lifting of US curbs backed
Staff Correspondent

WASHINGTON, June 27: The question of Pakistan's progress towards
democracy loomed large during the initial confirmation hearing of
US ambassador-designate to Islamabad Wendy Chamberlin before the
Senate Foreign Relations Committee.

Replying to critical questions from Senator Paul Wellstone,
chairman of the foreign relations sub-committee, and Senator
Brownback, after her general opening statement, which said very
little of substance, Ms Chamberlin stressed that there was need to
redefine US relations with Pakistan in the interest of regional
stability, adding that the American objective should be to help
Pakistan to strengthen democratic institutions and governmental

She said the main attention should be on how relations with
Pakistan could be rebuilt in the changed circumstances and ways
found to engage Islamabad, specially through programs such as
counter-narcotics in which Pakistan had made great progress.

Ms Chamberlin said sanctions against Pakistan were under review,
and she could not say anything about the ongoing process because
she was not yet part of government. But personally she felt that
sanctions had not helped and should be lifted.

Musharraf, Vajpayee urged to agree on N-freeze
Monitoring desk

NEW DELHI, June 29: Indian and Pakistan anti-nuclear activists have
urged Prime Minister Atal Bihari Vajpayee and President Gen Pervez
Musharraf to agree on a "nuclear freeze" during their coming

In a joint statement India's Coalition for Nuclear Disarmament and
Peace (CNDP) and the Pakistan Peace Coalition said there was an
urgent need for such confidence-building measures. There was a
"grave potential" that a conventional conflict between the two
countries could escalate into a nuclear exchange.

Nuclear deterrence vital to security
By Faraz Hashmi

ISLAMABAD, June 25: President Gen Pervez Musharraf said his
government will not compromise on the nuclear deterrence being
maintained entirely for self-defence. "The minimum nuclear
deterrence can and will never be compromised," Gen Musharraf said.

"Pakistan believes in maintaining a minimum credible deterrence and
does not want to direct its available resources towards the race of
weapons of mass destruction," he said.

Pakistan, he said, was interested in further harnessing the nuclear
energy for power production. He said the steps taken by the
government would spur economic activity in the country and the
government may decide to set up two more nuclear power units at
Chashma and Karachi.

Pakistan, India need nuclear safety: report
By Tahir Mirza

WASHINGTON, June 24: The need for prompt negotiations and
implementation of nuclear risk-reduction measures by Pakistan and
India is underlined in a new report due to be released in

The report, by the respected Henry L. Stimson Centre, was in
preparation for some time, but its publication is described as
quite fortuitous in view of the forthcoming Pakistan-India summit
where the subject of adequate safeguards by the two neighbouring
nuclear powers is likely to be a major topic of discussion.

The issue was also brought up at the 1999 Lahore meeting between
then prime minister Nawaz Sharif and Indian Prime Minister Atal
Behari Vajpayee who noted in the Lahore Declaration that they were
"convinced of the importance of mutually agreed confidence-building
measures for improving the security environment" and agreed to take
"immediate steps for reducing the risk of accidental or
unauthorized use of nuclear weapons."

The report concludes that Pakistan and India face far greater
difficulties in establishing nuclear safety and stability than
others states with nuclear weapons and seeks to provide impetus to
indigenous approaches to nuclear risk reduction between them.

Michael Krepon argues that nuclear risk reduction will be a far
more complex undertaking in South Asia than was the case for the US
and the then Soviet Union when bipolarity provided an element of
simplification and when a common understanding of stabilizing
activities could be negotiated.

Justice Qayyum resigns
Staff Reporter

LAHORE, June 26: Justice Malik Muhammad Qayyum of the Lahore High
Court resigned from his office on Tuesday. His resignation ended
speculations over the future of this career, which began to develop
when the Supreme Court in April, 2001, described his conduct as
"biased" in its order on an appeal filed by former prime minister
Benazir Bhutto against her conviction in a corruption case.

The SC had ordered a retrial in the case in which a Lahore High
Court ehtesab bench headed by Justice Malik Muhammad Qayyum had
convicted the former prime minister and her husband Asif Ali

Justice Qayyum's resignation was confirmed over the phone by a
member of his family on Tuesday night.

He was the third on the seniority list of the Lahore High Court. He
was elevated to the bench on October 24, 1988 and was due to retire
in 2006.

It is early retirement that Qayyum has sought
By Shujaat Ali Khan

LAHORE, June 27: Justice Malik Muhammad Qayyum of the Lahore High
Court has not resigned but has sought 'early retirement'.

The admissive faxed by him in this regard on Tuesday was re-faxed
on Wednesday at the request of the Federal Law Secretary, Justice
Faqir Mohammad Khokhar, as it was found not wholly legible.

According to LHC registrar Fakhar Hayat, the court has no
intimation neither of his resignation nor of his decision to seek
premature retirement.

The judge only informed the LHC office of his inability to hold
court for a couple of days due to indisposition. Cases will
continue to be assigned to him as usual. A number of case files
were received in his court room for hearing on Thursday.

Benazir sceptical of summit dialogue

LISBON, June 29: PPP leader Benazir Bhutto said she was not
optimistic that Gen Pervez Musharraf could make progress in
upcoming talks with India.

Ms Bhutto told Reuters that a peace deal reached in 1999 had failed
despite high hopes, and violence was still simmering. "I'd like to
be proved wrong, but I'm not optimistic," she said here during a
conference of the Socialist International, a world-wide grouping of
socialist and labour parties.

"Unless the level of violence goes down, I remain sceptical," she
said, adding, "there isn't a solution to Kashmir, but we need to
manage the disagreement so we can avoid tension, killing, violence
and promote trade and understanding."

The former prime minister said Gen Musharraf was using the talks
with India to divert attention from tense relations with the
Taliban government.

"We have said Gen Musharraf should concentrate instead on holding
elections and leave it to the elected government of the future to
bring peace to the region." "If he wishes to be president, he has
to ultimately seek the mandate through the political parties," Ms
Bhutto added.

Democracy, she stated, was essential for easing tension between
India and Pakistan over the testing of nuclear weapons.

Ms Bhutto said any elected parliament in future should be free to
formulate foreign policy without what she called military

She said she hoped to return to Pakistan to contest general
elections scheduled for 2002. "I know the generals don't want me to
contest, but the people of Pakistan want me to."

Benazir meets Paris Bar chief

ISLAMABAD, June 28: Benazir Bhutto met with the President of Paris
Bar Association Mr Francise Teiggen and also Head of the Human
Rights Committee of the Bar Mr Francois-Xavier Charvet.

Bhutto briefed them on how the Human Rights violations were taking
place under the present regime and the political leaders were being

She also gave examples that justice denied to those political
leaders who are demanding the restoration of democracy and holding
free and fair elections.

The President of the Paris Bar Association, Mr Teiggen, was also
informed how those lawyers, who defend their political clients,
were being subjected to harassment and inhuman treatment. In some
cases, he was told, lawyers were arrested and false cases were
framed against them.

Mr Teiggen showed keen interest to investigate cases against the
lawyers. He also hoped that the Pakistan Bar Council would
communicate such cases where judicial abuse had occurred.- PR

Benazir seeks world pressure for fair polls
Staff Reporter

ISLAMABAD, June 27: Former prime minister Benazir Bhutto has urged
the international community to pressure the regime into allowing
fair elections and releasing political prisoners.

According to a press release issued here by PPP media cell, Ms
Bhutto after arriving from Dubai, began her European tour with a
meeting with the president of the Foreign Affairs and Defence
Committee, Xavier de Villipen, in the Palais de Luxembourg. She
apprised him of the political situation in the country.

Benazir Bhutto gave the opposition's view on the assumption of the
presidency by Gen Pervez Musharraf, the prospects of
democratization, French relations with Pakistan and the proposed
meeting between India and Pakistan. She said that the undemocratic
dismissal of the PPP government in 1996 led to the political crisis
in Pakistan.

Since that day, the Taliban went into Kabul, fighting over Kashmir
broke out in Kargil, South Asia witnessed 11 nuclear detonations,
foreign investment dried up, the economy collapsed and ultimately
the military took over, she said.

She expressed apprehension that more political instability lay in
store if the military got its way in imposing a puppet regime by
excluding all political personalities from contesting the next
elections. She said that it was the love of the people and her
faith in God which had enabled her to stand up against fascism in
difficult circumstances.

PIA's overall aviation policy being reviewed
Staff Reporter

KARACHI, June 27: The grounded PIA airbus A-300 will only be made
operational after ensuring all safety standards and full
cooperation is being extended to the experts to investigate and
determine the causes which led its airbus to a sudden loss of
pressurization, PIA deputy managing director Khurshid Anwar said
confirming that a team from Bureau Enquetes Accident, France, on
Friday had met PIA officials and inspected the airbus.

In reply to a question he told Dawn that for the safety of the
passengers the PIA had been flying Boeing-747 as a substitute to
the A-300 Airbus on its London, New York and Far Eastern routes so
that the operation schedules of the national flag carrier should
not be affected with the grounding of its four A-300 aircraft.

After May 25 incident of the airbus, in which failure of its rear
pressure bulkhead had resulted in a sudden loss of pressurisation,
a test was conducted on PIA's A-300 fleet and four aircraft were
grounded following detection of some flaws at their bulkhead areas.

Mr Anwar said that a technical team of the Air Bus, along with the
PIA experts, had been carrying out various checks to ensure safety
standards. He said that the overall aviation policy, including the
open sky policy, was being reviewed in the light of the set goals
of the present government to make national institutions viable. In
this connection, he said, a committee has been formed to review the
aviation policy including its open sky aspect objectively, which
will submit its recommendations within six weeks. The committee has
also been asked to go through aviation policies of other countries.

The present aviation policy, practised since 1997-98, has opened
the northern gateway to foreign airlines, have played havoc with
the PIA and turned out to be one of the major causes for its
financial collapse.

Under the policy, Karachi, Lahore, Islamabad and Peshawar sectors
have been opened up to all airlines which have started using their
capacity for dumping purposes by destroying fair integrity and
causing losses to the airlines, PIA in particularly has suffered
the most due to its old fleet.

Rehmat Shah Afridi sentenced to death
Staff Reporter

LAHORE, June 27: Owner of Frontier Post and Maidan, Peshawar,
Rehmat Shah Afridi was awarded death sentence and a fine of Rs1
million in two cases each of drug smuggling by a special anti-
narcotics judge.

Judge Syed Kazim Raza Shamsi also awarded life imprisonment and a
fine of Rs250,000 each to two co-accused, Abdul Maalik and Missel
Khan. In case of non-payment of fine, Mr Afridi will have to serve
two years and the two co-accused one year each imprisonment.

Mr Afridi was arrested by the Punjab Anti-narcotics Force from near
a five-star hotel on The Mall on April 2, 1999 after 21kg of charas
was recovered from the car which was being driven by him. The ANF
has already got frozen all assets of Mr Afridi worth billions of
rupees from the court and is pressing for their confiscation
through a separate case.

Anti-Terrorism Act to be amended soon
By Mohammad Asghar

ISLAMABAD, June 26: The federal government is expected to
promulgate Anti-Terrorism Act (Amendment) Ordinance 2001 within a
few days to curb the menace of sectarianism, official sources told
Dawn on Tuesday.

The cabinet has already approved the draft with incorporated views
given by the four provinces - law, justice and human rights
division, accordingly re-drafted the law containing some deletions,
amendments, substitutions and addition in the Anti-Terrorism Act
1997, said the source.

According to amendments and substitutions proposed in the new
ordinance section 7 will be substituted as follows:

In the 1997 Act, the punishment for a terrorist act, which has
resulted in death of someone, is death. In the draft ordinance, the
punishment proposed is death or life imprisonment.

Punishment in cases where grievous bodily harm is caused, will be
minimum imprisonment for 10 years but may extend to life
imprisonment, and for grievous damage to property the punishment
will not exceed 14 years imprisonment but mandatory sentence is 10
years imprisonment.

In the Ordinance 2001, the punishment for certain acts of terrorism
is as follow:

(a) Death of a person is caused, shall be punishable with death, or
with life imprisonment and with fine;

(b) Grievous bodily harm or injury caused to any person, shall be
punishable with imprisonment for a term which shall not be less
than 10 years but may extend to life imprisonment and shall also be
liable to a fine;

(c) Grievous damage to property is caused, shall be punishable with
imprisonment for a term not less than 10 years and not exceeding 14
years, and shall also be liable to a fine.

In the Ordinance 2001, measures to be taken against proscribed
organization are as follow:

(a) Its offices, if any, shall be sealed;

(b) Its accounts, if any, shall be frozen;

(c) All literature, posters, banners or printed electronic, digital
or other material shall be seized;

(d) Publication, printing or dissemination of any press statements,
press conference or public utterances by or on behalf of a
proscribed organization shall be prohibited.

The proscribed organization shall submit all accounts of its income
and expenditure for its political and social welfare activities and
disclose all funding sources to the competent authority designated
by the federal government.

In the Ordinance 2001,

(1) A person is guilty of an offence if he belongs or bed

(2) A person guilty of an offence under subsection (1) shall be
liable on conviction to a term not exceeding six months
imprisonment and a fine;

(3) A person commits an offence if he:

(a) Solicits or invites support for a proscribed organization;

(b) Arranges, manages or assists in managing or addressing a
meeting which he's known, to support a proscribed organization, to
further the activities of a proscribed organization; or to be
addressed by a person who belongs or professes to belong to a
proscribed organization

(4) A person commits an offence if he addresses a meeting, by any
means whether electronic, digital or otherwise, and the purpose of
his address is to encourage support for a proscribed organization
or to further its activities or to incite sectarian or ethnic

(5) A person commits an offence if he solicits, collects or raises
funds for a proscribed organization.

(6) A person guilty of an offence under subsection (3), (4), and
(5) shall be liable on conviction to a term of imprisonment not
less than six months and not exceeding five years and a fine.

(7) A person commits an offence if he,

(a) Wears, carries or displays any article, symbol, or any flay or
banner connected with or associated with any proscribed

(b) Carries, wears or displays any uniform, items of clothing or
dress in such a way or in such circumstances as to arouse
reasonable suspicion that he is a member or supporter of a
proscribed organization.

(8) A person who commits an offence under sub-section (7) of this

(1) May be arrested by a police officer without a warrant, if he
has reasonable grounds to believe that the person is guilty of an
offence under such sub-sections;

(2) Shall be liable by way of summary procedure to simple
imprisonment for a term not exceeding three months or to a fine, or

Terrorism has been redefined by substituting section 6 of the
Terrorism Act 1997 as follow:

Terrorism means, the use or threat is designed to coerce and
intimidate or overawe the government or the public or a section of
the public community or sect or create a sense of fear or
insecurity in society and the use or threat is made for the purpose
of advancing a political, religious, ideological or ethnic cause.

In the Ordinance 2001: (1) A person commits an offence if he
provides, without valid authorization from the competent authority,
any instruction or training in the making or use of (a) firearms,
(b) explosives, (c) chemical, biological, nuclear and other

(2) A person commits an offence if he trains any child under sub-
section (1) and, on conviction, shall be liable to a term of
imprisonment of not less than 10 years.

(3) A person commits an offence if he receives instruction or
training from anyone without valid authorization from the competent
authority to give such instruction or training or invites another,
specifically or generally, to receive such unauthorized instruction
or training in the making or use of, (a) firearms (b) explosives
(c)chemical, biological nuclear other weapons.

(4) A child commits an offence under subsection (3) if he receives
training from anyone under section (3), and if proven guilty, shall
be liable to a term of imprisonment for two years.

(5) A person guilty of an offence under sub-section (1) and (3)
shall be liable on conviction to imprisonment for a term not
exceeding 10 years, or a fine to be determined by the federal
government from time to time, or both.

In the Ordinance 2001, the court may in its discretion, admit a
person to bail in all offences, except offences under section 7,
unless satisfied that there are substantial grounds for believing
that the person if released on bail (whether subject to conditions
or not,) would,

(a) Fail to surrender to custody;

(b) Commit an offence while on bail;

(c) Interfere with a witness, otherwise obstruct or attempt to
obstruct the course of justice, whether in relation to himself or
another person;

(d) Fail to comply with the conditions of release (if any).

The Ordinance 2001 said that the remissions granted under prison
rules shall not exceed one-fourth term of imprisonment awarded
under this Act.

In the Ordinance 2001, all offences under this Act shall be tried
by the Anti-Terrorism Court established under this Act. Proceedings
may be held in camera, where necessary, or the court may impose
terms and conditions for court attendance where members of the
public attend for the purpose of intimidating or harassing officers
of the court or the witnesses.

Domestic debt increased faster in 2000-01
By Mohiuddin Aazim

KARACHI, June 26: The government accumulated both domestic and
foreign currency debt at a much faster pace than projected in
fiscal year 2000-01.

According to the budget documents for fiscal 2001-02 domestic
permanent debt rose by Rs31 billion in 2000-01 against original
estimate of Rs12 billion. In other words the government borrowed
Rs19 billion more mainly through non-bank sources. The budget
documents also show a fourfold increase in the floating debt of the
government - from Rs6 billion to Rs24.5 billion. This rise was also
recorded mainly in non-bank borrowing.

To add fuel to fire foreign currency permanent debt swelled by
Rs7.2 billion in 2000-01 against instead of contracting by about
Rs11 billion. In other words the government borrowing through debt
raising securities denominated in foreign currency recorded a net
growth of Rs18 billion in fiscal 2000-01.

The government raises permanent domestic debt chiefly through four
instruments: (i) Federal Investment Bonds (ii) Government Bonds
issued to State Life Corporation of Pakistan and others and (iii)
Pakistan Investment Bonds.

The breakup shows that permanent domestic debt rose in 2000-01
solely due to higher amount mopped by PIBs introduced in the same
year. The government borrowed Rs40 billion from non-bank sources
through PIBs against an initial estimate of Rs20 billion. Had it
not been so domestic permanent debt might have reduced slightly.
Because in 2000-01 the government retired Rs5 billion worth of debt
raised earlier through federal investment bonds against the target
of Rs4 billion. Similarly it met the target of retiring Rs3.5
billion worth of debt raised earlier through government bonds
issued to State Life Corporation and Rs139 million raised through
other bonds.

On the other hand the floating debt rose by Rs24.5 billion in 2000-
01 against the target of Rs6 billion mainly because net government
borrowing through treasury bills shot up to Rs15 billion against
the target of Rs2 billion. Its borrowing through prize bonds also
rose to Rs9.5 billion - or more than double the target of Rs4

Economists say the government has allowed a large increase in its
non-bank borrowing in fiscal 2000-01 anticipating that its bank
borrowing would close at minus Rs39.4 billion and that would show
its net budgetary resources in a better shape. But it seems
unlikely that the government bank borrowing would close at minus
Rs39 billion against the target of minus Rs2 billion even after a
huge increase in non-bank borrowing. It seems unlikely because net
government bank borrowing stood at Rs22.4 billion as on May 26. And
bringing it down to minus Rs39.4 billion means the government will
have to retire Rs61.8 billion between May 26 and June 30 2001. This
is a difficult task.

Meanwhile, the increase in foreign currency permanent debt from
targeted minus Rs11 billion to Rs7.2 billion in 2000-01 is due to
mopping up of Rs9 billion through special US dollar bonds against
the target of Rs2 billion. The government accumulates permanent
foreign currency debt by selling (i) foreign exchange bearer
certificates (ii) foreign currency bearer certificates (iii) US
dollar bearer certificates and (iv) special US dollar bonds.

TARGETS FOR 2001-02: After witnessing a sharp rise in domestic and
foreign debt in fiscal 2000-01 the government has made lower
projections for next fiscal year. The budget documents show that
the government plans to raise Rs14 billion net domestic credit
through various long term bonds in 2001-02. It also plans to add
only Rs10.8 billion to its floating domestic debt in next fiscal
year. And so far foreign currency permanent debt is concerned the
government has set a net retirement target of Rs7.1 billion.

Economists say like in the past meeting these targets can pose
serious problems because these have not been set keeping in view
the ground realities. For example the government has set a target
of Rs25 billion non-bank borrowing through Pakistan Investment
Bonds despite knowing that it had to double its borrowing through
PIBs from targeted Rs20 billion to Rs40 billion in fiscal 2000-01.

Senior bankers reached by Dawn said fixing an unrealistic target
for PIBs sale had created serious problems for the primary dealers
in 2000-01 adding that the history might repeat itself in 2001-02.

Primary dealers are the banks selected for selling PIBs on behalf
of the government.

Rs71bn Sindh budget carries no new tax
By Sabihuddin Ghausi

KARACHI, June 29: Sindh Finance Minister Abdul Hafeez Sheikh
presented a Rs71.7 billion revenue expenditure budget for the next
fiscal year with an indicated deficit of Rs2.28 billion.

Total revenue receipts in the coming fiscal have been projected at
Rs69.42 billion that include Rs36.91 billion from Sindh's share in
the federal tax pool, Rs15.87 billion straight transfers from
Islamabad on account of royalty and development surcharge on oil
and gas, and Rs4.13 billion compensatory grant for octroi and Zila.
The province is expected to generate Rs12.5 billion from its own

Deficit on the capital side is indicated at Rs3.23 billion. Thus,
the overall deficit - revenue and capital - is shown at Rs5.52

The minister unfolded a development package of Rs10.42 billion with
a provincial ADP of Rs5.75 billion to be financed almost entirely
by Sindh as a single major component. Other components are: Rs2.8
billion Khushhal Pakistan to be shared equally by the province and
the Centre and Rs1.87 billion to come as foreign assistance. Sindh
is expected to generate more than Rs7 billion in next fiscal to
finance the entire development package.

Rs27bn budget for Balochistan
By Sabihuddin Ghausi

QUETTA, June 27: Balochistan Finance Minister Malik Naeem Ahmad
announced a Rs27.34 billion budget for the 2001-02 fiscal, which
has an allocation of Rs3.47 billion for the proposed 22 district
governments in the province.

The budget estimates total revenue expenditure during the next year
at Rs18.35 billion whereas the development outlay has been put at
Rs7.89 billion.

Total receipts have been estimated at Rs27.34 billion� provincial
share in the federal tax pool and direct transfers from Islamabad
Rs23.98 billion, provincial revenue generation Rs1.2 billion,
foreign assistance Rs2.07 billion and a cash assistance of Rs11.50

Malik Naeem announced that while the budget carried no new tax, it
had abolished seven of the taxes. The repealed taxes are: tax on
bank cheques, tax on advertising on electronic media, excise on
courier service, duty on telephone, octroi surcharge, recovery of
surcharge, and municipal house tax.

The government's strategy for the next fiscal, said the minister,
was to improve the recoveries instead of levying any new taxes.

In his budget speech, he said that out of a total current
expenditure of 18.35 billion, a sum of Rs14.88 billion would be
available with the province. This, he added, included a Rs10.80
billion wage bill of over 160,000 employees of the province as well
as the impact of increase in salaries whenever it became effective,
over Rs3 billion for debt serving, Rs676.76 million for pensions
and Rs300 million for subsidy on wheat.

To implement the devolution plan for districts a Rs150 million
Devolution Fund had been constituted, the minister stated. He said
that Rs3.47 billion had been earmarked for districts, which were to
be spent for purchase of office furniture and machinery, repair and
maintenance of furniture and machinery, expenditure on running of
the water supply scheme, commodities and services, scholarship and
rehabilitation of the famine hit.

However, heralding of the devolution era and announcement of the
first budget for the district governments was done in a rather
inauspicious manner. No budget documents were made available to
journalists. Officials explained that "these are under print in the

Only a few pages to show the budget position and budget at a glance
were provided. These pages were apparently torn out from some
document. There were discrepancies between the minister's speech
and the documents.

The minister announced the size of the budget at Rs24.16 billion
which "is neither surplus nor deficit but a balanced document". He
projected the Public Sector Development Program at Rs5.80 billion.
In contrast, the budget position document sets the size of the
budget at Rs27.34 billion. It incorporates a PSDP of Rs7.89

At Rs27.34 billion, the 2001-02 budget is marginally higher than
the revised budget of Rs25.14 billion in the outgoing fiscal. The
estimated non-development expenditure at Rs18.35 billion is a shade
higher than Rs18.13 billion expenditure in the current fiscal year.
So is the Annual Development Program, which has an outlay of Rs7.89
billion for the next year as against Rs7.50 billion in the current

The Rs7.89 billion ADP for the next fiscal year includes Rs2.07
billion of foreign assistance. The minister said that the Asian
Development Bank and the World Bank would provide the assistance.

"In the development budget, along with funds for meeting the
drought, a sizable amount has been earmarked for the district
development packages," Malik Naeem announced.

He pointed out that the government had given priority to the
irrigation sector which would have 32 new schemes in addition to 17
ongoing projects. A total amount of Rs1.38 billion was being
invested, including Rs960 million foreign project assistance, and
Rs427.57 million government share.

The minister also spoke on the efforts being made to make
improvement in the sectors of health, education, agriculture,
forestry, physical planning and housing, communications and works.
He said that big projects involving massive investment were being
taken up by the Center for implementation in the province. An
amount of Rs1 billion would be allocated for the Gwadar deep sea
project, Rs2 billion for the coastal highway, Rs800 million for the
Mirani dam, Rs846 million for the greater Quetta water supply
scheme, establishment of an IT University, and Rs250 million for
the construction of Loralai-Dera Ghazi Khan Road.

The total cost of the Mirani dam is expected to be Rs4.5 billion,
coastal highway Rs12 billion, the Kacchi canal Rs44 billion and
greater Quetta water supply scheme Rs6 billion, said the minister.

27 taxes go in Rs128bn Punjab surplus budget
By Nasir Jamal

LAHORE, June 28: Punjab Finance Minister Tariq Hamid presented a
Rs128.27 billion surplus budget for the fiscal 2001-02, carrying a
development outlay of Rs20.13 billion and an allocation of Rs43.04
billion for the 34 proposed district governments.

The development outlay is 18 per cent higher than the current
year's allocation and a larger portion of it - 45pc, or Rs9.3
billion - has been allocated to the district governments for
undertaking new schemes and projects. The remaining amount will be
used by the province for completing the ongoing projects.

The government has distributed an amount of Rs6 billion to be spent
on ongoing development schemes in such a way that the less
developed areas get additional funds.

The budget seeks to generate Rs126.279 million through new taxation
measures while granting a relief of Rs108.485 million through
rationalization of and reduction in existing taxes.

The general revenue receipts have been put at Rs120.313 billion as
against the revenue expenditure of Rs108.14 billion, showing a
surplus of Rs12.173 billion.

The province hopes to receive Rs100 billion from the Centre as its
share from the divisible pool and direct transfers, and generate
Rs20 billion from its own resources. There is an increase of 9.18pc
in the federal pool transfers compared to the current year's.
Punjab, however, is not expected to get more than Rs90 billion from
Islamabad because of deduction at source of Wapda and other federal

There are numerous discrepancies in the figures given in the budget
documents and the speech delivered by the minister on radio and
television in a provincial hook-up. The most glaring being the
difference in the estimates of current expenditure: while the white
paper estimates the current expenditure at Rs108.14 billion, Mr
Hamid put it at Rs99 billion.

The revenue receipts for the next year are up by about Rs11 billion
over the current year's revised estimates of Rs109.356 billion.
Similarly, the revenue expenditure shows a growth of Rs9.539
billion over the current year's revised estimates of Rs98.601

The net capital receipts for 2001-02 show a deficit of Rs3.244
billion as the current capital expenditure of Rs30.662 billion is
in excess of the current capital receipts of Rs27.417 billion.

The net public account receipts show a negligible surplus of Rs3
million as public account receipts stand at Rs69.254 billion as
compared to disbursements of Rs69.251 billion.

Thus the net current budget surplus stands at Rs8.931 billion,
slightly greater than the current year's revised estimates of
Rs8.743 billion, after taking into account the deficit in the net
capital receipts and surplus in public account receipts.

The abolition of the 27 provincial taxes and rationalization of the
existing nine ones announced in the budget has resulted in a loss
of Rs1.126 billion. The Provincial Own Receipts - both tax and non-
tax - dipped 2.2pc in the revised estimates for the current year.

The Provincial Own Receipts have been pitched at Rs20.335 billion
for 2001-02, which is 1.3pc higher than the current year. The share
of the Provincial Own Receipts in the total current revenue
receipts in the budget estimates has decreased from 17.58pc to
16.90pc while the share of the federal transfers has increased to
80.67pc from 78.63pc, showing Punjab's increasing dependency on the
federal transfers for resources.

The provincial tax receipts for 2001-02 have been put at Rs11.77
billion - Rs4.099 billion from direct taxes and Rs7.671 billion
from indirect taxes - as compared to the revised estimates of
Rs11.322 billion for 2000-01. The revised estimates for the current
year show a decrease of 11.55pc in the budgetary estimates of
Rs12.801 billion.

Discussing fiscal measures, the minister said the government had
avoided putting any additional burden on people in spite of the
18pc increase in the development outlay. However, he added, the tax
policy had been "changed slightly".

The changes announced by him in the taxes would result in a net
additional income of Rs17.794 million. The budget proposes to
increase the exemption limit on the property tax in respect of
residential houses owned by widows, minor orphans, and disabled
persons from their annual rental value of Rs24,000 to Rs30,000
which is estimated to result in a loss of Rs27 million.

The existing cotton fee charged in the range of 8-16 paisa per
kilogram has been proposed to be fixed at 10 paisa per kilogram
payable up to March 1. The fixation of the uniform rate would bring
an income of Rs71.692 million to the province.

Electricity duty has been imposed on the industrial units using
power generators of more than 500KVA for self use which would
enhance the government income by Rs54.587 million.

Similarly, tax on the transfer of immovable property has been
imposed at the rate of 1pc of value of the property to bring local
government out of the financial crisis. However, the government did
not disclose how much burden the new measure would put on the

Entertainment duty on cinemas has been reduced to 30pc from the
existing 65pc, and converted to a fixed charge per day in respect
of different categories to be determined by the government. The
rate would be frozen for five years. The revenue loss is expected
to be Rs81.485 million.

Annual licence fee on cinemas would not be levied for five years.
The weekly municipal show tax, professional tax on owners of movie
halls, and air-conditioning has also been abolished.

In his speech, the minister said the budget was different from the
previous documents because it sough to devolve power to grass roots
to remove the economic inequities in society. He said the budget
attempted at reconciling its priorities with the process of
decentralization of power.

"It seeks to devolve the financial powers and resources to the
district governments which will be authorized to approve and
implement projects up to Rs15 million. The primary objective is to
reduce the size and powers of the provincial government and
transfer authority to the districts," he said.

Foreign-funded and inter-district development schemes would
continue to be implemented by the province, he added.

Mr Hamid said that Rs5 billion had been allocated under the
Khushhal Pakistan Program. The government had already spent Rs6.31
billion under this program. He gave details of the measures taken
by the government to help farmers fight effects of drought and
increase production. He said the government had incurred Rs5
billion on the procurement of wheat this year.

The minister said the government had set aside Rs30.29 billion for
education, Rs8.5 billion for health, Rs2.9 billion for agriculture,
7.17 billion for irrigation and Rs8.23 billion for the police in
the budget.

NWFP unveils Rs44bn budget for 2001-02
By Intikhab Amir

PESHAWAR, June 28: The NWFP government announced over Rs44bn
provincial budget for the 2001-02 fiscal year, with the largest
chunk of anticipated revenue receipts - 91.62 per cent of the total
- shown to be coming from the federal government and Wapda.

The NWFP finance minister, Farid Rehman, said the wide gap between
receipts and expenditure demanded a fresh review to create fiscal
space to overcome the financial constraints the province has been
facing for the last several years.

Against the Rs44.067bn total revenue receipts for the 2001- 02
fiscal year, total revenue expenditure of the province has been
projected at Rs45.04bn, causing a shortfall of Rs973m.

Similarly, against Rs1.03bn capital receipts slated to be raised
during the 2001-02 financial year, a Rs1.81bn capital expenditure
has been envisaged, reflecting another shortfall of Rs776m.

Whereas the provincial government has indicated an overall Rs1.75
bn deficit (including Rs973m and Rs776m) for the next financial
year, it [the deficit] originally stands at well over Rs9bn as the
new year's budget carries an in-built deficit of Rs8.328bn under
the net hydel profit head because against the Rs14.328bn projected
share the province is likely to receive only Rs6bn during the 2001-
02 fiscal year - the capped share amount Wapda has been releasing
to the NWFP for the last eight years.

Apart from Rs14.328bn net hydel profit share, direct federal
transfers from the Federal Divisible Pool has been projected at
Rs21,724.96bn, Rs4,248.64bn subvention/grants from the federal
government and Rs10m matching grants for the additional revenue the
province would record under different heads of the provincial own
receipts by making upward adjustments.

No new tax has been introduced. However, the structure of some of
the fees and user charges have been revised.

For the first time in the financial history of the province, during
the 2001-02 fiscal year it would get Rs52.31m royalty on crude oil
and Rs11.63m royalty on natural gas - as their deposits discovered
in NWFP in the recent past have been marketed.

At a time when the direct federal transfers and releases from
external resources have been projected to jointly record 28 per
cent growth [in 2001-02 fiscal year] in comparison with the revised
budgetary estimates of the 2000-01 financial year, provincial own
receipts have been estimated to rise just by three per cent during
the next financial year.

POR target for the 2001-02 financial year has been pitched at
Rs3.692bn against Rs3.6bn revised budgetary estimates for the 2000-
01 financial year.

The target envisaged for the 2001-02 financial year appears to be
Rs559m less than the Rs4.3bn POR target that had been set at the
start of the 2000-01 financial year.

However, according to the White Paper, made available to Dawn by
official sources, the provincial government's expenditure against
its revenue receipts is not likely to settle at the Rs45bn
benchmark envisaged under the budget at a glance. Rather, it is
likely to get settled at a level much larger than the projected

Last KSE session of current fiscal ends on dull note
Staff Reporter

KARACHI, June 29: The KSE 100-share index fell 2.53 points at

But big gains in some of the pivotals show that all was not bad
with the broader market. The managements extended good support to
their shares to finish the year on higher note. Shortage of
floating stock added to the price flare-ups.

Both Nestle MilkPak and Rafhan Maize, which rose by Rs. 14.90 and
34.50 respectively in the lead followed by Colgate Pakistan,
Ferozesons, Bannu Woollen, IGI Insurance, Lakson Tobacco, Shell
Pakistan and several others, which posted gains ranging from Rs.
4.00 to 7.00

After moving either-way, the KSE 100-share index finally ended 2.53
point lower at 1,366.94 as compared to 1368.97 a day earlier,
reflecting the weakness of PTCL and Hub Power.

Apart from the big gainers, other leading gainers were led by Trust
Bank, H.M.Ismail Textiles, Shaheen Insurance, Aventis Pharma, and
General Tyre rising by Rs.1.90 go 6.00.

Losers were led by New Jubilee Insurance, Prudential Commercial
Bank, Al-Jadeed Textiles, Quice Foods and Atlas Lease, falling by
Rs.1.50 to 5.45.

Trading volume fell to 44m shares from the previous 53m shares as
losers forced a strong lead over the gainers at 121 to 89, out of
the 258 actives.

PSO again topped the list of most actives, unchanged at Rs. 132.50
on 11m shares followed by PTCL, lower 20 paisa at Rs. 17.95 on 8m
shares, Hub-Power, easy 15 paisa at Rs. 19.10 on 4m shares, Fauji
Fertilizer, off 60 paisa at Rs. 35.70 on 3m shares and FFC-Jordan
Fertilizer, lower 15 paisa at Rs. 5.65 on 2.186m shares.

Engro Chemical led the list of other actives, off 50 paisa on
1.486m shares, ICI Pakistan easy 10 paisa on 1.625m shares, Dewan
salman, lower 30 paisa on 1.443m shares, Sui Northern, off 20 paisa
on 1.139m shares and MCB, lower 15 paisa on 1.015m shares.

DEFAULTER COMPANIES: Trading on this counter was slow as shares of
only three companies came in for trading and ended with fractional

Back to the top
'Bania, mooch nichi'
By Ardeshir Cowasjee

We begin with the Founder and Maker, Mohammad Ali Jinnah: "...every
successive government of Pakistan will be worse than its

After Jinnah, all those who came, the leaders who claimed to have
been freely and fairly elected, those who were chosen to lead, and
those who rode in on horseback, have ended up by being hanged, have
fallen from the skies, have been jailed, exiled, or put in the

Now we have Musharraf who over a year and a half down the road
still appears to be sincere, has still not allowed himself to be
corrupted, has not yet claimed to have been sent on a divine
mission, can still differentiate between religion and religiosity,
and, maybe, given time, he could prove Jinnah to have been wrong.

Far too clever Bhutto, my erstwhile friend, a tyrant in the garb of
a democrat, crowned himself as the civilian chief martial law
administrator (the first in history). The sole opposition he
feared, he used to say, "is that of the largest and most
disciplined party, the army."

He juggled with the generals, chose as his army chief the most
obsequious, the bowing-and-scraping Mard-e-Momin, Mard-i-Haq, Zia-
ul-Haq. Zia saw him out, hanged him, and had he not fallen from the
skies nine years later, might well still have been ruling this

Now to Rafiq Ahmad Tarar, the sacked president, seen off by General
Pervez Musharraf who termed him a man of honour and dignity. Why
did the general have to say this? People do not care for
hypocritical statements. Tarar was first a judge, and a bad judge
at that. He has at least two unhappy judgements to his name.

Criminal Appeal 4/SAC/1 decided by Tarar in February 1994 (1994
SCMR 1456) concerned the case of Muhammad Ashraf & Others versus
the state and was an appeal against the enforcement of the Hudood
Ordinance and the conviction of the appellants by the Special Court
for Speedy Trials no. 11 at Lahore. Ashraf and two others had been
sentenced to have their right hands amputated from the wrist and
their left legs from the ankle, to seven years RI, and to a fine of
Rs 20,000 each. Their crime was the theft of Rs 40,000 and of a
licensed pistol and for causing "simple and grievous injuries" in
the process.

Tarar wrote the judgement, the concluding paragraph of which
reads:"Before convicting the appellants, the learned trial court
considered all the relevant provisions of law, including sections
10, 11, 16 read with sections 7 and 20 of the Offences Against
Property (Enforcement of Hudood) Ordinance 1979 which cater for
situations where Had shall not be imposed and/or enforced and on
proved facts rightly concluded that the offence committed by the
appellants squarely falls within the ambit of section 17(3) of the
Ordinance. The only punishment provided by section 17(3) is the
amputation of right hand from the wrist and left leg from the ankle
which has been imposed by the learned trial and we confirm the
same." This was seven years ago when Tarar was sitting as Chairman
of the Supreme Appellate Court at Lahore.

Another judgement he wrote was in March 1993 in the matter of
Criminal Appeal 91/SAC/L/92. He opened up: "This appeal by Khalil-
uz-Zaman convict is directed against the judgment of the learned
Special Court for Speedy Trials-II Lahore, whereby he was convicted
u/s 302 and 324 read with Section 337-F of the PPC. Under Section
302-PPC he was sentenced to death as Tazir and was directed to pay
Rs 50,000 as compensation to the legal heirs of Mst Asia Perveen
deceased u/s 544-A of the Cr.P.C. and u/s 324/337-F of the PPC he
was sentenced to imprisonment for 10 years... In the circumstances,
the appellant is liable for Qatl-e-Amd u/s 302(a) of the PPC
punishable with death as Qisas. In that view of the matter, the
order directing payment of compensation is set aside. His
conviction and sentence u/s 337-F is also set aside and with the
above modification his appeal is dismissed."

The convict appealed against the judgement of Tarar, Chairman of
the Supreme Appellate Court, Lahore, and his appeal was heard by a
bench of the Supreme Court headed by Justice Munir Khan and the
judgement of that Bench (PLD 1994 SC 835) recorded:

"... we are in no manner of doubt that the trial court and also the
learned Appellate Court had no lawful authority/jurisdiction/power
whatsoever to convict the petitioner under section 302 PPC or to
impose penalty of death on him, and have acted in gross violation
of law... If the impugned judgements are allowed to stand then the
petitioner would be deprived of his life obviously in pursuance of
orders which suffer from lack of jurisdiction and authority, gross
carelessness, illegality and were violative of Fundamental Rights
guaranteed by the Constitution. Fortunately for the petitioner, our
Constitution gives protection to the citizens of Pakistan against
illegal treatment in the matter of life, liberty and body... In
this case the courts, vide impugned judgements, have ordered the
petitioner to be hanged to death although he was/is not liable to
death in law for the offence allegedly committed by him.

"There can be no case more fit and proper than the present one for
interference in exercise of our original jurisdiction... Had the
courts taken the trouble of reading three sections of the Pakistan
Penal Code, i.e. sections 306, 307 and 308, we are sure they would
not have sentenced the accused/petitioner to death under Section
302 PPC. The error committed by the courts in convicting the
accused/petitioner under Section 302 PPC and sentencing him to
death is so serious that had the petitioner eventually been hanged
to death, we are afraid it would have amounted to murder through
judicial process..."

Another case involving the good Justice Tarar at around the same
time was that of a 20-year-old girl and a young man accused of
adultery and of killing the girl's husband. On extremely flimsy
evidence a sessions judge in the NWFP sentenced them to be hanged
to death. They appealed to the High Court, the sentence was upheld,
they then appealed to the Supreme Court where they found Justice
R.A. Tarar. He upheld the sentence and the 20-year-old girl would
have been hanged but for a presidential reprieve.

Tarar has still to explain why, when the judges of the Supreme
Court revolted against their Chief Justice Sajjad Ali Shah in
November 1997, he chose to clandestinely fly to Quetta in the
middle of the night to meet the Supreme Court judges of the Quetta
Bench. Did he prevent the course of justice?

Musharraf has rid us of Tarar, he has dissolved the assemblies and
the senate and sent all of them, the majority corrupt and useless,
home. They all bear collective guilt. Not a tear has been shed at
their departure, other than tears of their own.

Our past writers of 'historical judgements' have opined that
Musharraf has elevated himself to the presidency
unconstitutionally. That is their opinion. Our present chief
arbiter of law and provider of justice, Chief Justice of Pakistan
Irshad Hassan Khan, deemed it right and correct to administer the
oath of office and to swear in General Pervez Musharraf as
president of Pakistan, which he did on June 20. The losers will go
to our courts, waste their time and our money. The people hope that
Musharraf's government will not in this case spend millions of
rupees of the people's money on high-flying second rate lawyers who
will dispense much time and energy on losing the government's case.

We must hope that our able independent Chief Justice of Pakistan
ensures that his writ prevails.

To these of our foreign friends who insist on preaching the virtues
of democracy, I ask if they are aware of the capabilities of our
self-appointed democrats? Zulfikar Ali Bhutto promulgated our
Constitution in 1973 and within four hours had the fundamental
rights enshrined therein suspended and had many members of the
opposition jailed. Do they know that it takes our democrats less
time to push through the National Assembly and Senate a
constitutional amendment than it takes the Jadoogar of Jeddah to
draft and have an ordinance promulgated? Do they know that we had a
prime minister who thought he could keep the army out by passing a
constitutional amendment, the 13th in line? Do they know that the
same devastator of our country tried to replace the chief of our
army staff with one of his favourites who commanded less men and
weapons than commanded by the surgeon-general of the army.

Now, President General Pervez Musharraf, Chairman of the Joint
Chiefs of Staff of the armed forces, Chief of Army Staff, Chief
Executive, has invited the noise-makers of our sorry bunch of
politicians to meet him before he flies across the border to talk
to Atal Behari Vajpayee, the Indian prime minister. They are to
meet him on June 27 and to lunch with him thereafter. Reportedly,
Rhodes Scholar Waseem Sajjad, former Senate chairman, and my good
friend Ilahi Bakhsh Soomro, former speaker of the National
Assembly, have also been invited. It should be a fun-filled day.

To end on a serious note. Musharraf will be flying over the border
to meet a formidable friend (let us not call him a foe). Vajpayee
has grown up imbibing the term 'Bania, mooch nichi.' to understand
the full import of these words I suggest he have a discussion with
Gujerati-speaking Suleman Dawood, father of Musharraf's minister
Razzak. Wise Suleman grew up with the Banias.

The general as president
By Benazir Bhutto

On June 20, 2001, Pakistan's coup leader declared himself the
president. Since he made little secret of his ambition to become
president, his assumption of office was expected. He became the
fourth military commander to march into the presidency with his
boots and guns.

The presidency, a seat of constitutional power envisaged by the
country's founders, was instantly transformed. The civilian
President refused to resign and was shown the door with a salute.
He refused to salute back.

The general proclaimed himself president. With more than half a
million men under arms to back his self-declaration, General
Musharraf casually changed from khaki to mufti.

Musharraf was careful not to consign the khaki to the old clothes
disposal store. Conscious that his power flows from his military
post, the general declared that now he was the president and the
Chief of Army Staff. Never mind that the Constitution says that
presidents must be elected by the Parliament. The Constitution, as
an earlier general-president said, 'is a booklet of twelve pages
that can be torn'.

In countries where constitutions are the basic law, the Musharraf
presidency was greeted with shock. America, Britain and the
European Union were quick to express their dismay. Even the Chinese
endorsement was missing. For China it was "an internal matter". The
only country that welcomed the oath taking in the rich and
splendoured halls of the Pakistani presidency on Islamabad's hill
was the old foe India. India must have its reasons for doing so.

The country's two largest political parties and their allies were
quick to denounce the move as "anti-democratic and
unconstitutional". The general ignored them. State television
produced a never elected cricketer turned politician to "endorse"
the Musharraf presidency.

The senior generals were out in force in the controversial halls of
the ill-fated presidency. It is called the ill-fated presidency
because none of its occupants left with honour. General-president
Zia went up in a ball of fire. Presidents Ishaq, Leghari and Tarrar
were forced out before their terms ended.

But the ill-fated ghosts of yesteryear were far from the minds of
the brass sitting under the rich chandeliers of the poor country.
Perhaps their minds were more on their own promotions. Speculation
is rife as to which of the duo that brought him to power Musharraf
plans blessing as his military successor. They include General
Mahmood and General Usmani. The first put the ousted premier into
prison and the second safely brought the hijacked Musharraf plane
down on the fateful day of the coup. Musharraf's own military term
ends in October. It is likely that he will benefit himself with an
extension but promote another three-star general to four-star
status and ask him to act as the vice chief.

As ceremony and power united in the ornate halls of the presidency,
the speculation grew as to why the General sprung the presidency a
surprise keeping his allies in the dark. Neither the cabinet nor
the National Security Council was consulted. The powerful body of
corps commanders was reduced to a rubber stamp, hearing the news a
few hours after rumours swept the country. Even US Secretary of
State Colin Powell, with whom the Pakistani foreign minister was
meeting when the general declared himself president, was kept
ignorant. The foreign minister was exposed and embarrassed. He came
across as a propagandist of the regime rather than a substantive
player whose assurances carried value.

In the predominantly Muslim country which believes that "God loves
not the arrogant", the general declared, "In all sincerity, I
believe I have a role to play and a job to do". Such musings
brought to mind dark moments in history of earlier dictators. Those
dictators left the country disintegrated, lost wars, territories
and bequeathed a barren landscape of a demoralized and divided

It was hoped that General Musharraf would be different from his
predecessors. But in twenty months, he made wrong moves at the
wrong time and reached the wrong conclusions based on wrong advice.
Each politically motivated action of his lost him support when the
platform for gaining it was available.

When generals seize power, hubris seizes them. They rhetorically
ask: "Who will throw us out?" The answer is obvious in contemporary
history, littered with examples of fallen generals. This is an age
where Pinochet and Suharto are dragged to court as their former
juniors watch.

It was obvious that the protocol of his coming India visit bothered
Musharraf. Here was the general who sent three thousand Pakistani
soldiers to their martyrdom in the icy peaks of Kargil. More often
than not, as postmortems of grass in empty bellies showed, they
died of hunger rather than cold. Lines of supply were cut. The
soldiers still fought, ready to die rather than retreat. Indian
casualties were equally heavy.

And then there was the Indian premier's visit to Lahore in 1999.
Then army chief Musharraf, along with the other service chiefs, was
conspicuous by his absence. Musharraf, who refused to salute
Vajpayee on home ground, was faced with the dilemma of saluting him
on Indian territory, after the shedding of much blood in the

Swearing himself in as president earlier than planned was
Musharraf's answer to the awkward salute. Protocol could rank him
higher than the Indian premier. Now the president of India will lay
out the red welcoming carpet for the Kargil architect. Many Indian
soldiers lost their lives in the Kargil fighting until America
directed Islamabad to unilaterally withdraw.

In declaring himself president, Musharraf showed little
consideration for the group of politicians that hoped to ride to
power on his coat-tails. Promised power through the revival of the
assemblies, they woke up in a cold sweat to the news that they were
now redundant. But power is a strange creature without friends or
foes - only vested interests. In this case, those vested interests
came to the fore ruthlessly, rapidly and without niceties or

The dissolution of the assemblies showed the vulnerable side of the
Musharraf regime. The dismissal of the assemblies was evidence that
Musharraf lost confidence. He no longer believed that the old
parliament could elect him or give him the vast powers desired.

Given the pressure for fair and free elections, and the inability
of the Musharraf regime to deliver so far, it appears unlikely that
the next elected parliament, due in 2002, will please Musharraf any
better. So where does that leave the man who said "God has been
very kind to me" when he declared himself president?

There are four options that the generals now have to acquire
legitimacy. First, an extension from the Supreme Court for the term
allocated so far. But this will stir up misgivings amongst the
international community. Second, a manipulated referendum could
confirm legitimacy but is a double-edged sword. The people could
boycott, making it difficult to fill the ballot boxes. Third,
election through the local councillors, but that too is double-
edged. Strong-arm tactics could backfire. Fourth, an understanding
with the opposition alliance. Since the last option causes military
hearts to verge on near fatal attacks, that leaves three
substantive options for them.

None of the preferred options are clean or tidy. Excluded political
parties will resist those options, making the international
strategic factors critical. Ironically, such external support now
hinges on the benevolence that nemesis Vajpayee is willing to

Clearly, reducing tensions between nuclear-armed India and Pakistan
is the unanimous strategic compulsion of the international
community. The question being asked is whether Vajpayee can do
business with Musharraf? They will get to know each other when the
two men meet in the retreat. The non-papers they exchanged in the
follow-up to the meeting remains secret. New Delhi is playing on
the local boy comes home theme. The Indian home where a two-year
old Musharraf played before the family migrated to Pakistan in the
Indian capital is being done up. And, as the Clinton visit showed,
the Indians know how to wine and dine a dignitary. That can be

The downside is that any agreement between the two will be
disputed. Musharraf goes to New Delhi without the support of the
people. He is not on speaking terms with his elected predecessors.
Besides, much as Musharraf may wish to win a Nobel Peace Prize, it
is a poor compensation for the rest of the Pakistani army. And he
knows it. Lacking legitimacy and representation, it is unlikely
that Musharraf can do more than regurgitate old agreements on
nuclear confidence, trade or gas pipeline.

Pakistan's Supreme Court gave the generals a mandate to govern
until October 2002. Given that so little time is left to that date,
uncertainty has increased with the sacking of the assemblies and
the ouster of the previous president.

If there is a silver lining in the dark cloud of the self-declared
Musharraf presidency, it is that the declaration outlines political
succession. The provisional constitutional order provides for an
acting president of Pakistan should the president be absent.

Other than that, there is little to cheer about. Whether Musharraf
calls himself president, prime minister or the Chief of Army Staff,
he is the man running the show. He is responsible for the political
and economic situation in Pakistan. Given the political
polarization in the country, the lack of freedoms, development and
economic progress and the representative nature of the military
regime, it makes little difference what Musharraf calls himself.

Being nice is not the point
By Ayaz Amir

Nothing is so calculated to make one want to run one's thumb over
the edge of a sharp knife than the line heard so often this past
year and a half that Musharraf is a nice guy: clean, transparent
and honest, someone who talks straight and has the good of the
country at heart.

If politics was about likeability and personal attractiveness we
should not have had any problems in the first place. All the
generalissimos who have strutted on the national stage were
attractive figures. To look at photographs of Iskander Mirza, Ayub,
and Yahya in their prime or at the height of their power is to be
reminded of the bearing and personality for which they were once
praised. Even Zia did not fail to impress visitors with his
humility and good nature.

Of our democrats Bhutto had a great personality but that did not
save him from his walk to the gallows. Most other politicians who
rose to high office look like dry sticks compared to their military
counterparts. Who would have wanted to spend an evening with
Junejo? Or with Nawaz Sharif for that matter?

Benazir, with her ready wit and gift for one-liners, could be the
epitome of charm. But by harping on her righteousness and never
admitting to any wrong (traits which have not deserted her) she
could also be insufferable. By all accounts, Asif Zardari is a
friend's friend, a boon companion, and an easy person to get along
with. But this exactly is the point. If being nice was all there
was to politics, Zardari should have been the answer to Pakistan's

Musharraf's military predecessors were unmitigated disasters not
because they lacked charisma and charm. They failed and left
Pakistan worse than before because the institution which was the
source of their power was at once their biggest strength and
greatest handicap. Their thinking and vision were shaped by this
institution. Their prejudices were a product of their military
training. They were thus pre-programmed to see things in a certain
light and brought up to believe that the military was the
repository of all the virtues, politics was a deceitful game and
politicians were venal and corrupt figures who deserved nothing
better than to be handled with a stick.

And since, for all their outward impressiveness, the generals who
ruled Pakistan were essentially pedestrian figures, with little
imagination and no vision, they could never go beyond the
limitations of the army mind. This is not to say that Pakistan's
military saviours have not played small games of deception, have
not said one thing and done another, or have not been devious in
other ways. They have indeed and often more so than their civilian
peers. But this kind of cleverness does not translate into great
leadership. Pakistan's military rulers have all been clever without
being intelligent. Beginning by reviling politicians, they often
proved more adept at politics than regular professionals. But this
is what they remained right till the end, even when the shadows
began closing in on them: clever jugglers. None could make the
grade to anything resembling statesmanship.

Why? Two factors, I think, account for this failure. Firstly, for
some reason the intellectual tradition has never been very strong
in the ranks of the Pakistani general staff, intellectual
brilliance being the exception not the norm. Secondly, the Pakistan
army is a deeply conservative institution, intrinsically oriented
to the preservation of the status quo, and therefore averse to any
profound or radical altering of the socio-economic foundations of
Pakistani society.

The expectation of radical steps on its part is therefore wholly
misplaced. Whenever the military steps into the political arena it
will always do what comes the readiest to it: installing
streetlights, terrorizing the sanitary staff of municipal
organizations, starting anti-encroachment drives and in the process
making life difficult for street-sellers and cart-vendors. And at a
bigger level talking loudly about accountability and recovering
looted money. This is all. This is what it was like under previous
military governments. This is what it has been like under
Musharraf. Beating empty drums, glorifying the small and petty:
trust the army always to do this and then to describe its efforts
as nation-building.

This is not deliberate deception. To think so is to get the whole
thing wrong. The army as an institution is incapable of anything
better. To the pursuit of the small and ephemeral it brings a vast
amount of zeal and enthusiasm. Even when grappling with municipal
drains and streetlights, an endeavour which ends by leaving army
units exhausted, the army thinks it is reordering the fundamentals
of society. Meanwhile the Chief - Yahya, Zia or Musharraf - becomes
a jack of all trades. He devotes some time to the army and some to
the civil administration. Since he is neither Napoleon nor superman
he ends up being part-time army chief and part-time administrator,
beholden to his generals for the smooth running of the army and to
his civilian technocrats for running the government.

Small wonder and contrary to popular belief, the worst excesses of
nepotism and cronyism in Pakistan take place under military
regimes, with generals and bureaucrats being promoted and kept in
office long past their usefulness simply because the General-in-
chief has had so many favours to return. In every military
government favourites emerge whose power is less a reflection of
outstanding merit as of their services to the ruler of the day. On
a broader level, the privileged status of the higher echelons of
the Pakistan army is not a fortuitous development. It is a direct
outcome of the need felt by successive generalissimos to keep their
core constituency happy.

So wherein lies the fault? Not in the qualities or defects of
character of Pakistan's military rulers but in the structural and
intellectual limitations of their rule. It is not that one-man rule
or autocracy is always and everywhere bad. England apart, the
Europe that we see today is a product of various forms of kingship
and authoritarianism. Democracy made a late arrival in much of the
continent. East Asian prosperity, including China's emergence as an
economic powerhouse, is based upon the politics of
authoritarianism. It is just that the same solution does not fit
every situation. The Pakistani model of authoritarianism which
derives its legitimacy and currency from the army is flawed because
the instrument at hand, the Pakistan army, is not equipped to
deliver the wages of good administration (the necessary condition
for economic prosperity).

The Pak Army is not the Kuomintang of Taiwan. It is not the
Communist Party or People's Liberation Army of China. It is not the
British civil service of Hong Kong nor the army of South Korea. It
can only produce the figures it has done; it can produce no Lee
Kuan Yews. This is not to say it has no strengths. It has them
indeed and they are not to be scoffed at. But among these
strengths, as the history of the last 50 years has demonstrated,
lies not the art of government or administration. The Pakistan army
can do many things and it can do them better than the armies of
many other countries. But it simply lacks the ethos or grounding to
bring about a social revolution or lay the foundations of an
enduring political order.

This is what makes Musharraf's assumption of the presidency such a
sad event. For in laying bare his ambition, and perhaps that of his
closest generals, this move reveals, as nothing else could, that we
have learned nothing from the past. That Musharraf at a personal
level may be a very nice soul is an irrelevant circumstance. He has
embarked upon a course that can only spell disaster for the
country. For the continuity of which reforms is he so concerned?
What reforms has his government brought about? If anything, the
last year and a half has added to the sum of national suffering and
confusion. So, apart from the prompting of a paranoid ambition,
what justification is there for the emerging Suhartoization of
Pakistan? In Asia there are bad authoritarian models and good and
we seem to be going for the worst of the lot.

Pakistan came into being as the result of a democratic process. Let
no confusion surround this central truth. Authoritarianism of the
military kind fits nowhere into its founding principles. This kind
of rule fails also the test of pragmatism for it has brought
nothing but disaster for Pakistan. The conclusion is obvious. The
only service Musharraf can do Pakistan is to return it to
democracy. That the Benazirs and Nawaz Sharifs of democracy may
have been corrupt and inept figures is a matter of detail. It takes
away nothing from the substance of the argument that time and again
the military model has failed in Pakistan and, nice strongman or
not, will fail again. Jaded as the refrain may sound, the only
experiments we can afford to make are on the democratic plane.

Pakistan squander two-goal advantage
Sports Correspondent

LAHORE, June 29: Pakistan salvaged a 2-2 draw with the hosts The
Netherlands in the first Test at Drachten Hockey Club ground.
Pakistan, despite leading 2-0 at the half time, surrendered the
advantage to the home side in the second half dominated by the home

The visitors started well with a goal from Kashif Jawwad who netted
on a 10th minute penalty corner. A combined move involving utility
player Mohammad Nadeem and Mohammad Sarwar saw midfielder Mohammad
Usman scoring the goal number two just two minutes from the half
time whistle. Sarwar missed the target twice before the half time.

After going 2-0 down, the Dutch reduced the margin 2-1 through
Loman who converted a penalty corner just after the restart.
Tendionozr slammed home the equalizer for the Netherlands in the
42nd minute.

Atif Bashir and Kashif wasted clear openings once in the second

Belgium stun Pakistan: Pakistan lost to Belgium 2-1 in the one-off
hockey Test in Brussels. After a 1-1 stalemate in the first half,
Belgium scored the winner after the change of ends.

Pakistan penalty corner specialist, Sohail Abbas netted the
consolation goal.

Pakistan leapfrog into second place

HAMBURG, June 24: Germany humbled the Netherlands 4-2 Sunday to
clinch the four-nation hockey tournament while Pakistan finished
second after a thrilling 8-6 victory over South Korea.

The Germans, who went into the match two points ahead of the Dutch,
followed up victories over South Korea (2-0) and Pakistan (3-2)
with a 4-2 win against the reigning Olympic and world champions to
take the title for the sixth time on home soil.

Hamburg-born Christoph Beckmann slotted two goals, with Tibor
Weissenborn and Oliver Domke wrapping up the scoring in front of
3,500 fans.

Pakistan's 8-6 win over Sydney Olympics silver medallists South
Korea, who finished as woodenspoonists, saw them leapfrog into
second place ahead of the Netherlands and come out the tournament's
top scorers with 11 goals in three games.

Pakistan's short corner executioner, Sohail Abbas's three goals
came off two penalty corners and a stroke. Utility player, Mohammad
Nadeem, and Muddasir Ali found the cage twice, and Zeeshan Ashraf
netted once.

After three wins against quality opposition, German coach Bernhard
Peters said his team could now "face the future with confidence".

Earlier Saturday, Germany eliminated Pakistan hopes of winning the
tournament when they twice came from behind to topple them 3-2.

Pakistan, after two matches, had a single point they earned
following Friday's 1-all draw against The Netherlands. The
Netherlands outclassed South Korea 6-3 in the other match on

Sohail Abbas, put his side ahead in the fifth minute. But the
Germans soon replied with a short corner goal through Timo Wess
four minutes before lemon time.

Former skipper Atif Bashir put Pakistan again in front five minutes
into second half. But the visitors buckled under pressure as the
game headed for closure with Germany first equalizing through
Christoph Eimer in the 57th minute and Oliver Domke scoring the
match winner in injury time.

It was Germany's second victory over Pakistan following their 4-2
win in the one-off test last week.

The four-nation contest was a part of Pakistan's European tour for
the build-up to the six-nation Champions Trophy to be hosted by
Lahore from Nov 3-11.

Inzamam gets two matches suspension

LONDON, June 24: Pakistan batsman Inzamam-ul-Haq was fined half of
his match fee and banned for two One-day Internationals for dissent
during the triangular series final against Australia at Lord's.

The Pakistan star was given out lbw for 23 to leg-spinner Shane
Warne by English umpire Peter Willey. But his long stay at the
crease followed by his slow trudge off the field was too much for
match referee Brian Hastings.

The New Zealand official has been criticized here for his failure
to take action in previous games but in his last match of the
English season he hit Inzamam with a real, rather than suspended

A statement issued on his behalf said: "The match referee has fined
Inzamam-ul-Haq fifty percent of his match fee and banned him for
two One-day Internationals for dissent. "This follows similar
incidents involving Inzamam in April 1998 and May 2000. He was also
warned about the same offence after the first Test here against
England."-Reuters/ AFP

Waqar asked to carry on as captain
Monitoring Desk

LONDON, June 28: Waqar Younis will be asked to continue as captain
following a two-month stint in the job, chairman of the Pakistan
Cricket Board chairman Lt Gen Tauqir Zia was quoted as saying on
PCB's official website.

The board appointed fast bowler Waqar in April for a tournament in
Sharjah and a two-month tour of England. Under his captaincy
Pakistan reached the final in Sharjah, drew a two-Test series
against England and lost to world champions Australia in the final
of a three-nation one-day competition.

Waqar has a 2-1 record leading the side in Tests and 10-5 in
limited-over internationals. He's one of ten players to have
captained Pakistan in the past ten years.

"We've had our problems with captains, but Waqar is a very hard-
working man and has handled the side well," Zia said. "I will keep
him as captain as long as I feel he is fit mentally and

Zia said he wants to appoint the 29-year-old Waqar for New
Zealand's tour of Pakistan in September and the Asian Test
Championship, which runs from September to February.

Waqar re-emerges as one of the greatest bowlers

LONDON, June 25: Waqar Younis this month re-emerged as one of the
world's great bowlers. Sadly, no one noticed. That, at least, is
how it must seem to the Pakistan captain.

At the start of June, he took five wickets in the second and final
Test against England at Old Trafford, making one of the key
breakthroughs on the last day by removing Graham Thorpe with a
venomous new-ball spell before claiming the wicket which drew the

All the talk afterwards, however, was of how the umpires failed to
spot a string of no-balls on the final afternoon, three of them
from off-spinner Saqlain Mushtaq. The no-balls ultimately cost
England four wickets.

During the triangular series which followed, Waqar uprooted the
first seven England batsman to claim the second-best one-day
figures of all time at Headingley, seven for 36. But the headlines
focused on England conceding the match after a premature pitch
invasion by Pakistan fans.

A haul of six for 59 followed against Australia at Trent Bridge, a
background to fresh controversy as Steve Waugh marched his side off
after a firecracker landed near Brett Lee.

Then on Saturday, Waqar was named Man-of-the-Series with 17 wickets
at 12.88 apiece. He barely got a mention, Australia winning the
tournament and Michael Bevan being hit in the face by a beer can
flung by a spectator.-Reuters

Former official criticises Pakistan Tennis Federation
By Imran Naeem Ahmed

ISLAMABAD, June 26: Pressure on the Pakistan Tennis Federation
(PTF) continued to mount with Munir Pirzada, a former secretary of
the federation joining the growing number of people criticising
those running the game.

In a letter written to the president of the PTF, Anwar Saifullah
Khan, and obtained by Dawn from sources, Pirzada says that things
in tennis have become "ugly and dirty" in the past few months.

He tells Saifullah that it wouldn't be too long before "somebody"
falls into the trap of the National Accountability Bureau (NAB),
the Federal Investigation Agency (FIA) or the sports ministry.
Pirzada who was the PTF secretary twice, first from 1985 to 1986
and then again between 1991 and 1995, accuses Saifullah of
protecting people who have been playing dirty, by not implementing
the recommendations of the disciplinary committee.

The PTF's disciplinary committee, headed by Brig. Khalid Sajjad
Khokhar, after conducting its inquiries had submitted its final
report and recommendations to Saifullah. But much to the surprise
of the tennis circles, no action was taken by the PTF General
Council which met in Karachi on June 12. Instead the house decided
to hand over the matter to the four senior vice presidents of the
federation and its president to decide on the cases.

The cases of indiscipline are against PTF secretary Ali Akbar, vice
president Bashir Gill, joint secretary Muhammad Khalil, former
Davis Cup player Hameed-ul-Haq and ITF White Badge Umpire Arif

Pirzada warns Saifullah that his reputation would be "damaged
further" if the report reached the press. "You cannot keep this
document under lock and key." He has urged the president not be "so
scared" to take action himself, something which he is
constitutionally authorized to do. "Perhaps you don't want to hang
your partners and friends who have kept you in this seat for the
last six years."

Pirzada also draws Saifullah's attention to the hiring of a foreign
coach, a job that has been entrusted to two officials of the PTF,
Saeed Ahmad and Jamal Mirza. Both have been asked to look for a
coach at a maximum salary of $4000 per month along with free
boarding and lodging. "How can the PTF afford this," questions

He writes that both the gentlemen have already left for London to
be present during the Wimbledon Championships and also hunt for a

Pirzada, in a tone which is harsh as well as humorous, writes that
he is aware that PTF is rated among the three most poorest nations
on the ITF list. "I am not aware of the rating of the PTF on the
ITF corruption list," he says.

All attempts to contact Anwar Saifullah on Monday evening and
Tuesday proved futile. Ali Akbar was also not available, having
left for England, reportedly to watch Wimbledon.

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