------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 17 March 2001 Issue : 07/11 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS =================================================================== NATIONAL NEWS + Pakistan not to be first one to resume N-testing: FM + Small dams all over country planned: CE + Balance of power among objectives, No interim setup in offing: CE + Musharraf to meet politicians on CTBT: Consensus to be sought + UN chief refuses to meet APHC leaders + A political conviction: counsel + Law to ban sectarian groups proposed + Reforms reversion to be blocked: CE + Sovereignty to be safeguarded, says Musharraf + Jam elected chief of like-minded group + PAF to acquire F-7 aircraft from China + Religious fanaticism to be curbed: Musharraf + Pakistan Navy test-fires 2 missiles + Moin fails to convince Taliban + Torkham closed after firing --------------------------------- BUSINESS & ECONOMY + Pakistan economy rated as fifth riskiest + WB to help Pakistan, says official + No rise in defence budget: minister + CE calls for 25-30pc growth in exports + Trading volume nosedives at KSE + Govt to reward tax detectors + Tinplate importers to meet CE + 22pc increase in revenue collection + Petroleum prices cut by 17%: Unified rates for remote areas + KSE top companies awards: CE sees GDP at 4pc, exports $9.5bn + Pakistan seeks $6 billion soft-term loans + Change in monetary policy unlikely --------------------------------------- EDITORIALS & FEATURES + Tsunam Ardeshir Cowasjee + Mahmud and Ayaz Ayaz Amir + The limits of sovereignty Irfan Husain ----------- SPORTS + Wasim stabs Moin in the back
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010316 ------------------------------------------------------------------- Pakistan not to be first one to resume N-testing: FM ------------------------------------------------------------------- Omar R. Quraishi TOKYO, March 15: Foreign Minister Abdus Sattar said here on Thursday that Pakistan would "never be the first one" to resume nuclear testing. Addressing a press conference at the Japan Press Club, preceding a meeting with the Japanese Foreign Minister Yohei Kono, the Mr Sattar said that Pakistan was in favour of a no-first use of nuclear weapons but that it retained the right to use, defensively, conventional weapons. In his opening statement, the minister said that Pakistan had "voted in favour" of the Comprehensive Test Ban Treaty (CTBT) since 1996 but given what happened to the country in 1971 it was difficult to build public opinion on this. However, he said, this is precisely what the government is trying to do. Responding to a question whether there was any possibility that the treaty might be signed in the near future and whether it was linked to India's signing, the minister said that Pakistan was not linking its decision to India's decision to sign or not sign though "it would help build consensus in Pakistan if other countries" went the CTBT route. Referring to his meeting with newspaper editors in Lahore recently, Mr Sattar said that he had told them (the editors) that signing the CTBT was in the national interest. In reference to the country's nuclear programme the minister said that the sole reason for its birth was to prevent anything like what happened in 1971 when the country was dismembered into two. TALIBAN: Responding to several questions regarding Pakistan's Afghan policy and the recent demolition of the Buddha statues in Bamiyan, the minister said that anyone who thought Pakistan had a lot of influence over Afghanistan had better think again. He, however, said that had the western powers been more engaged with Afghanistan, it was possible that they, working with Pakistan, might have been able to do more to save the statues. KASHMIR: The minister did not directly answer a question referring to Pakistan's policy vis-a-vis attacks by freedom fighters in Held Kashmir and how these attacks would affect Gen Musharraf's offer for dialogue with India. The minister said that comprehensive peace proposals had been sent to New Delhi as long ago as Dec 2 of last year, but Pakistan was still waiting on that. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010314 ------------------------------------------------------------------- Small dams all over country planned: CE ------------------------------------------------------------------- ISLAMABAD, March 13: Chief Executive Gen Pervez Musharraf on Tuesday said many small dams costing about Rs200 billion would be built at various sites in the four provinces to address the water shortage problem. He was responding to a question asked by a woman councillor at the concluding session of women councillors' convention here. Gen Musharraf said it was not right to think that construction of only Kalabagh dam could fulfil the irrigation and power generation needs of the country. He said instead of insisting on building Kalabagh Dam in the presence of reservations of Sindh and the NWFP provinces, the government had decided to prepare feasibility for small dams like Hingol Dam in Balochistan, Gomal Zam Dam in the NWFP and Sehwan Dam in Sindh.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010316 ------------------------------------------------------------------- Balance of power among objectives, No interim setup in offing: CE ------------------------------------------------------------------- KARACHI, March 15: Chief Executive Gen Pervez Musharraf on Thursday ruled out the possibility of any interim setup in the country. "I keep reading about it but there is nothing of the sort," he said while speaking at a gathering of cross-section of opinion leaders at the 5 Corps Auditorium in Karachi. About roadmap of the present government, the chief executive said that such rhetorics should be stopped as there was no such roadmap. He said we would adhere to the Supreme Court decision regarding October 2002 and this is our roadmap and strategy. "We are not going to do anything in between and the Supreme Court decision will be adhered to." The chief executive said: "we will initiate steps for continuity, balance of power, ensuring national interests supreme." He said, "all these are before us and you will have to wait for sometime for how we are going to achieve these. We will let you know about this in a short time as to how we will ensure all this". "We have the ideas in mind. We are further analyzing and maturing the ideas. We will bring in checks and balances which will ensure economic activity in Pakistan". The direction and the path we have set will be followed in future, he added. About sectarian problem, the chief executive said some drastic decisions have been taken but have not been announced. He said some elements would have to be banned but before this steps will be taken for effective implementation procedure. He said in this regard a backup will be provided within a legal framework after examining various pros and cons for which the federal law minister has been assigned the task to work out, in consultation with the Chief Justice, within a week as to which ordinance or law is to be framed that could provide backup support for speedy trial. He said the government wants to frame a new law under which wanted elements are caught on fast track and tried. The chief executive said that his government would change the "political structure and culture" in the country by empowering the people with administrative authority and financial autonomy under the local government system to have control on running their affairs at the district and grassroots level. "We will ensure balance of power. At present there are no constitutional remedies to political problems. For this there is need to amend the constitution, and this would be done by eliciting public opinion." "My government will make sure that our system stays in place and is not changed in future," Gen Musharraf emphasized. The CE said that display of weapons had been banned but it was not an easy task to deweaponise the whole of Pakistan.- APP/PPI DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- Musharraf to meet politicians on CTBT: Consensus to be sought ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, March 16: The chief executive, Gen Pervez Musharraf, would start holding meetings with politicians next month to forge consensus for signing the CTBT as early as possible. Informed sources told Dawn on Friday that the CE had assured the Debt Reduction and Management Committee that the government would soon be signing the CTBT to become eligible for increased international assistance. During a presentation given at a recent cabinet meeting by Dr Pervez Hasan, chairman of the debt committee, the CE had said that the government had, in principle, decided to sign the treaty and that it was being delayed only to achieve consensus. Gen Musharraf had said that he would start inviting people from all walks of life, particularly politicians, next month to discuss with them the issues concerning the CTBT. The chairman of the debt committee and its members had called for signing the treaty with a view to removing international sanctions against Pakistan. "The CE gave a patient hearing to the members of the debt committee and fully agreed with them that the treaty should be signed without wasting any more time," a source said. The cabinet was told that Japan was still opposing the lifting of sanctions against Pakistan and wanted G-7 countries not to be lenient over the issue. Sources said that Germany and England had been backing efforts for restoration of aid to Pakistan but they were facing opposition by Japan due to which it was becoming difficult for G-7 to take any decision in favour of Islamabad. Dr Hasan did not raise the CTBT issue in his report, but he stated at the cabinet meeting that now when the country's internal and external debt had reached $60 billion, Pakistan was making its case further difficult by not signing the CTBT. Signing of the treaty, he added, would help expedite foreign assistance to the country. "Pakistan has to acquire $10 billion - $6 billion soft-term loans and $4 billion debt relief by the Paris Club - to pay off its $21 billion foreign liability in the next four years. This objective can only be achieved if the government decides to go for signing of the CTBT," Dr Hasan was quoting as having said at the meeting. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- UN chief refuses to meet APHC leaders ------------------------------------------------------------------- Correspondent NEW DELHI, March 16: UN Secretary-General Kofi Annan declined to meet leaders of the All Parties Hurriyat Conference, saying his schedule was too full to accommodate them, APHC leader Abdul Ghani Lone told Dawn on Friday. Indian media described Mr Annan's refusal as a snub to the APHC's claim to represent the people of occupied Kashmir. The excuse offered by the UN chief was all the more baffling since he was forced to cancel some of his appointments, including a meeting with Defence Minister George Fernandes on Friday after the minister's resignation over a raging arms scandal a day earlier. Mr Annan was allotted some time in the parliament galleries to witness the functioning of the world's most populous democracy, but in vain as the parliament could not meet, again because of the arms row. "He has expressed regret because of paucity of time," Mr Lone said with disbelief. "We, of course, knew much before that there would be no meeting. That is the unfortunate reality." Referring to Mr Annan's remarks during his visit to Pakistan in which he had expressed the UN's helplessness to intervene directly in the Kashmir issue, Mr Lone said those remarks were a reflection of the UN's flagging interest in the suffering of Kashmiris. "We know that if you are powerful and America is with you, you stand a better chance of getting justice," the APHC leader, camping here for the meeting with Mr Annan, said. Mr Lone said that more than 80,000 people had been killed in Kashmir's battle against the Indian rule. "The UN charter speaks on behalf of people like us, we have a say and a legitimate human rights case apart from a political quest. We are sorry that this does not seem to have occurred to the world community." An Indian news agency reported Mr Annan's refusal to meet the Kashmiri leaders thus: "In a rebuff to the Hurriyat Conference, which claims to be a principal party to the Kashmir dispute, United Nations Secretary-General Kofi Annan on Friday declined to give an audience to its representative Abdul Ghani Lone. "Hurriyat Conference had made a request at the United Nations office and Ministry of External Affairs to meet Annan during his three-day stay in the country," it said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- A political conviction: counsel ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, March 16: Raja Anwar, counsel for Benazir Bhutto, on Friday argued that his client was convicted only because Nawaz Sharif, the then prime minister, wanted her to leave politics. Addressing a seven-member SC bench, hearing appeals of Benazir Bhutto and Asif Zardari against their conviction, Raja Anwar argued that the Ehtesab Bench, comprising Justice Malik Qayyum and Justice Najmul Hasan Kazmi, had convicted his client on the basis of documents which were inadmissible. The process of awarding pre-shipment inspection contract which was set in motion in 1992 during the Nawaz Sharif government, culminated in 1994, the counsel said. The counsel said there was no violation of Financial Rules of the Government of Pakistan in the award of tenders. He said tenders could only be rejected after assigning any reasons in writing. When he referred to rule 90 of Pakistan's Financial Rules, Justice Bashir Jehangiri observed that in Pakistan every contract was awarded in violation of rules. At the end of every tender notice it was written that the competent authority reserved the right to reject the bids without assigning any reason. He said his client did not grant the contract, rather it approved it. The contract was awarded by Nawaz Sharif who had issued letter of intent before he was removed from office. The seven-member bench consists of Justice Bashir Jehangiri, Justice Sheikh Riaz Ahmad, Justice Munir A. Sheikh, Justice Nazim Hussain Siddiqui, Justice Iftikhar Mohammad Chaudhry, Justice Qazi Mohammad Farooq, and Justice Abdul Hameed Dogar. Responding to court's question about Jens Schlegelmilch's stay in Islamabad in Aug 1994, Raja Anwer said that there was nothing on record to show that the alleged frontman of Asif Zardari, Jens Schlegelmilch, met Benazir Bhutto. Justice Nazim Hussain Siddiqui observed whether it was possible for any official to investigate the sitting prime minister, the counsel said that his client was not prime minister at the time when investigations were being conducted. On conclusion of the proceedings on Friday, the court asked Raja Anwer to conclude his arguments by Monday as many other cases are suffering because of lengthy hearing of the case. The counsel, who had earlier indicated that he would conclude by Friday, said that he needed at least one more day to conclude his arguments. Raja Anwer assured the court that he would conclude his arguments by Monday next. The court will resume hearing on Monday, March 19. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- Law to ban sectarian groups proposed ------------------------------------------------------------------- Bureau Report ISLAMABAD, March 14: A joint meeting of the federal cabinet and the National Security Council (NSC) here on Wednesday approved the formulation of a stern law to take action against organizations and groups involved in sectarian terrorism. The proposed law to be presented at the next cabinet meeting would also provide for banning of such organizations. The meeting, presided over by Chief Executive Gen Pervez Musharraf, also directed the provincial governments to strictly implement the ban on the display of arms, making of inflammatory speeches and statements and actions in any way encouraging sectarian violence. All such offenders will be arrested immediately and proceeded against. The cabinet approved the recommendations of the task force on sectarian harmony to eliminate the menace of sectarian terrorism from the country. The recommendations are: A commission on religious harmony comprising minister for religious affairs as chairman, leading ulema and Heads of Wafaq of Deeni Madaris (Wafaq-ul-Madaris) as members and minister for interior as official member will be constituted for continuous consultations. Boards consisting of different sects to be constituted at tehsil, district, division and provincial levels for promotion of sectarian/communal harmony. Establishment of special task forces at provincial level to deal with sectarian terrorism. Conciliation committees to be established at the provincial level headed by the respective home secretary with leaders of both the sects and members to sift sectarian cases in order to identify innocent people falsely implicated and seek their release. Media to be encouraged to play an effective role in combating the menace of sectarian terrorism. Action to be taken against those religious leaders/workers who make provocative speeches and raise derogatory slogans against opposite sects. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- Reforms reversion to be blocked: CE ------------------------------------------------------------------- Reporter KARACHI, March 14: Chief Executive Gen Pervez Musharraf said on Wednesday that a package will be introduced to ensure that no future government can undo economic and political reforms being introduced by the government. He also announced that the government would move against sectarianism in a strong way and warned that religious extremism would not be tolerated at any cost. Speaking at the "22nd Top Companies Award 1999" of Karachi Stock Exchange here, the chief executive said majority of the people were moderate whose voice should be heard. "We will eliminate the extremism", he said. Gen Musharraf said action will be taken after resolving the legal bottlenecks of the proposed plan so that extremism could be controlled effectively. "There may be some problems in the beginning," he said but hoped that the government would overcome them. He said sectarianism and religious extremism were the cause of concern for sane elements within the country and abroad. Referring to political reforms, he said: "We will introduce a check- and-balance system and ensure that a constitutional answer is available for all future political problems of the country". He said the government would ensure restructuring of the system and take necessary steps so that no future government could reverse it. He said: "If an organisation is not functioning well and have serious defects then you carry out reforms but if the system is cancerous, you have to restructure it by carrying out strategic changes in the system which takes sometime." He said: "We may not be able to attain to attain maximum objective but we will set the direction to achieve it and not allow future governments to reverse the system." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- Sovereignty to be safeguarded, says Musharraf ------------------------------------------------------------------- ISLAMABAD, March 14 : Chief Executive Gen Pervez Musharraf has said Pakistan is a progressive and moderate Islamic state, with no aggressive designs but will take all necessary measures to ensure its integrity and sovereignty. "Pakistan desires peaceful coexistence with all its neighbours in the region. It will, however, take all necessary measures to guard its integrity and sovereignty," he said while addressing a delegation of Pakistan Development Forum members which called on him on Wednesday. According to an official statement, Gen Musharraf gave a detailed overview of the prevailing geo-political environment in the region and enumerated the various steps taken by the government of Pakistan for initiation of dialogue with India and for defusing tension in the region. "The ball is now in India's court," he stated.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- Jam elected chief of like-minded group ------------------------------------------------------------------- Saleem Shahid QUETTA, March 14: The provincial council of the Pakistan Muslim League (like-minded group), Balochistan, elected Jam Yousuf as provincial president here on Wednesday. Jam Yousuf was elected unopposed and was empowered by the council to nominate other office-bearers of the party, including the provincial general-secretary, till March 30, with the consultation of senior party leaders and workers. Senior PML leaders, including Asad Junejo, Zafarullah Jamali, Sardar Atif Sanjrani, Mian Ijaz Waheed, Malik Sarwar Kakar, Saeed Ahmed Hashmi, Mir Abdul Karim Nausherwani, Jam Mohammad Akbar and Sardar Nisar Ali Hazara, also attended the meeting. The name of Jam Yousuf was proposed for the top slot by Sardar Mohammad Yousaf Jogezai, while Dr Faqir Mohammad Jamal Nasir and Chaudhry Shabir Ahmed backed him in the provincial council meeting, which was held here at Muslim League provincial headquarters. The outgoing provincial president, Syed Fazal Agha, presided over the meeting. No other candidate filed nomination papers for the top slot against Jam Yousaf. About 122 out of 151 members of the provincial council expressed their confidence in the leadership of Jam Yousuf. It is interesting to note that PML(N) group leader, Sardar Yaqoob Khan Nasir, was claiming till last night that Syed Fazal Agha was loyal to Nawaz Sharif and the provincial council of Nawaz group would repose confidence in him as the provincial president. Syed Fazal Agha, who was appointed governor and party president by Nawaz Sharif, was underground for the last one week. He showed up at the council meeting, surrounded by armed guards. The like-minded group claimed that 131 provincial councillors attended the meeting and supported the election of the new provincial chief of the party. However, only 122 councillors were seen in the meeting. Sources said that 12 out of 151 provincial councillors had passed away. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010314 ------------------------------------------------------------------- PAF to acquire F-7 aircraft from China ------------------------------------------------------------------- KARACHI, March 13: Chief of the Air Staff, Air Chief Marshal Mushaf Ali Mir, has said that PAF is in the process of acquiring F-7 PG aircraft from China. The critical deficiency of a hi-tech aircraft in our force structure remains to be redressed, he said. Addressing the participants of the Air War College at PAF Base, Faisal on Tuesday, the Air Chief said as an interim solution, old Mirages have been purchased from various sources and upgraded to meet current technology requirements. Air Marshal Mir said various options have been studied and the government has been approached to consider the acquisition of a hi- tech weapon system as soon as the economic conditions allow. Air Marshal Mir said the PAF is fully capable to inflict significant damage upon the enemy and can effectively execute the mission assigned to it.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010313 ------------------------------------------------------------------- Religious fanaticism to be curbed: Musharraf ------------------------------------------------------------------- Ahmad Fraz Khan LAHORE, March, 12: Chief Executive Gen Pervez Musharraf declared on Monday that stringent measures would be taken to control religious fanaticism as it had brought no credit to Islam or the country. He was addressing 16th annual lunch meeting of the Council of Pakistan Editors here at a local hotel. "These outfits have harmed the country internally and distorted its image externally. I don't want to go into the details of the steps being envisaged by the government, but some tough measures are certainly on the cards during the next cabinet meeting on 14th. The meeting will also bring the oil prices down to pass on the decrease in international price to the consumers," he said. Gen Musharraf also appealed to journalists and the people in general to stop insisting on the construction of the Kalabagh dam as it was, according to him, creating a national crisis by alienating two provinces. Terming the economy his number one priority, he unveiled, what he called, a fast track economic revival plan and promised to pursue it with single-mindedness. Dilating upon his plan, Gen Musharraf told his audience that there were three main budget guzzling expenditure - debt servicing, defence and the task of running of the government. In order to revive the economy we have to manoeuvre some money from among these three sectors. Given the threat perception from India and its yearly increase in defence budget, we can hardly afford to cut defence expenditure beyond a point. Even if we do, it cannot be substantial enough to give us an economic breather. So is establishment expenditure. This leaves us only option of reducing our debt servicing. If we can replace our high interest rate borrowing with low or zero interest, we have chance for economic viability. He said he had personally spoken to President Hosni Mubbarak of Egypt, Prince Karim Aga Khan, Saudi Prince Abdullah and all of them had promised help. This is the only light at the end of economic tunnel, he remarked. On the domestic front, he said the government had identified three main areas, i.e. agriculture, small and medium-sized industry and information technology. He said information technology had the potential to take care of the urban middle class unemployed youths. "During last six months, I have been told by the minister for science and technology, that 6,000 students were trained in IT and all of them have got jobs," Gen Musharraf said. Continuing, he said agriculture could play the same role in rural areas. At present it was facing water shortage, but efforts were on to build dams to store more water for farmers. The government was concentrating on tea and edible oil production. Both consumed a combined foreign exchange of $2billion. Once the import bill is brought under control, more money would be available for this sector, he assured. Investment in the social sector, as being demanded by the press and some segments of civil society, promised long-term benefits, but the country needed short-term and quick results which could be expected from IT and agriculture. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010311 ------------------------------------------------------------------- Pakistan Navy test-fires 2 missiles ------------------------------------------------------------------- Reporter KARACHI, March 10: Pakistan Navy on Saturday successfully test- fired two missiles of the Exocest family. SM-39, a subsurface-to-surface missile, was launched from the newly-acquired Agosta sub 90-B PNS/M Khalid, and AM-39, which is the air-launched version of the same missile, from Atlantic aircraft. Both missiles were fired from near optimum range on to the target which was a decommissioned gearing class DD that later sank, said a PN spokesman. The Chief of the Naval Staff, Admiral Abdul Aziz Mirza, who was present onboard a ship, expressed satisfaction on the successful conduct of the exercise in the North Arabian Sea, some 80 nautical miles south-west of Karachi. "Pakistan Navy stands committed to safeguarding the vital national interests at sea, and is firm in its resolve to defend the motherland from aggression," he said. Briefing newsmen at PNS Mehran, the ISPR director of Pakistan Navy, Captain Zafar Iqbal, said that PNS/M Khalid was commissioned into the PN in September 1999 and this was the first time that SM- 39 missile firing had been conducted from that platform. Capt Iqbal said that successful firing of SM-39 from a submerged submarine had added tremendously to the anti-surface capabilities of Pakistan Navy. Referring to the second missile, he said that AM-39 was fired from a recently modernized PN Atlantic, which had been retrofitted with state-of-the-art sensors. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010311 ------------------------------------------------------------------- Moin fails to convince Taliban ------------------------------------------------------------------- ISLAMABAD, March 10: Taliban chief Mulla Mohammad Omar told Interior Minister Moinuddin Haider on Saturday that his decision to destroy pre-Islamic statues was "irrevocable," the Afghan Islamic Press (AIP) reported. "We cannot back down on the edict given by the religious scholars on the issue of statues," the privately-run AIP quoted Mulla Omar as telling Mr Haider at his headquarters in Kandahar. The interior minister had asked the Taliban leader to review his decision on the destruction of the statues. Taliban's senior spokesman Abdul Hayee Motmain quoted Mulla Omar as saying that "the destruction of statues and artefacts will continue in line with the edict of our religious scholars." Mulla Omar told Mr Haider, "the edict of religious scholars is the basic principle of Afghanistan and we cannot renege on it". He also told Mr Haider, "it is 100 per cent a religious issue strictly related to our internal affairs". An APP report from Islamabad said the Taliban authorities on Saturday told Pakistan that it was not possible for them to review the decision to destroy statues in Afghanistan. Mulla Mohammad Omar told Mr Haider and his delegation that the decision was taken after giving due consideration to all aspects of the issue, said a Foreign Office spokesman in a statement here. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010314 ------------------------------------------------------------------- Torkham closed after firing ------------------------------------------------------------------- Ismail Khan PESHAWAR, March 13: Pakistan on Tuesday closed the Pakistan-Afghan border at Torkham, following a shooting incident by a Taliban border guard, officials said. The official said that a Taliban border guard following a scuffle with Pakistani guards posted at the border checkpost 63km. The Afghan guard pulled out a pistol and fired a single shot at 01pm. Officials at Torkham said they did not know what caused the incident. Angry Afghans waiting to be allowed entry into Pakistan pelted stones on the Pakistani border guards. "We exercised restraint and did not retaliate," the official said. He said that several Afghans who had forced their way into Pakistan following the incident had been held and charged under the Pakistani laws. The official said that the border remained closed until 06pm, the official border closing time. "The matter has been brought to the notice of the higher authorities and we are waiting for further instructions," the official said. Pakistani border authorities have asked the Taliban to surrender the man involved in the shooting incident. The Taliban, though regretted the incident, have refused to oblige saying that the man has been arrested and would be tried under the Afghan laws. An official said this was the second serious incident this week.
BUSINESS & ECONOMY 20010317 ------------------------------------------------------------------- Pakistan economy rated as fifth riskiest ------------------------------------------------------------------- Masood Haider NEW YORK, March 16: Despite government's efforts to persuade the international businesses to invest in Pakistan, the country continues to be rated as one of the riskiest economies of the world. In the latest quarterly survey by The Economist which assesses the risks of investing in 100 countries, Pakistan is rated as the fifth riskiest country to invest in, preceded only by Iraq, Myanmar, Kenya, and Indonesia. The Economist Intelligence Unit's (EIU) criteria includes a country's political structure, economic policies, sovereign data risk and the state of banking system. The EIU publishes its findings every four months. Besides the political instability in Pakistan, with the army rule in force, the latest reports of Shari or Riba banking law as mandated by Shariat court is also inhibiting the already scared investors. Many investors were burned in 1998 when former prime minister Nawaz Sharif's government decided to freeze all foreign exchange accounts in the wake of nuclear tests by India and Pakistan. Another reason for the poor investment ratings for Pakistan is due to the fact that the Western media is full of reports about the fear of extremist forces in Pakistan, which they contend are gaining strength which may bring Taliban-like system in the country. Although Finance Minister Shaukat Aziz has assured the investors that their investment would be safe and not subject to Riba banking laws but past experience has made the investors shy due to fragility of the economic system. The Financial Times in a report points out that "Pakistan's previous military rulers tried similarly to create a new political order in the hope of taking away powers from the country's top political families. They were suspected by politicians, however, of trying to create a lobby of supporters which would remain intact even under a civilian government. But the eventual departure of the generals was followed by the return of the very same people they wanted to sideline, only proving to many that building a new political order is much easier said than done." General Musharraf faces the added problem of being the first military ruler who must contend with the pressures unleashed by a weak economy, in contrast with previous military rulers who oversaw large sums of western aid flowing into the country, the paper said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010313 ------------------------------------------------------------------- WB to help Pakistan, says official ------------------------------------------------------------------- Bureau Report ISLAMABAD, March 12: Ms Mieko Nishimizu, Vice President of the World Bank for South Asian Region, said here on Monday that Pakistan was facing a crisis of governance which was threatening social justice, harmony and the very soul of the nation. In her opening remarks at the three-day Pakistan Development Forum (PDF) meeting, she said that she agreed with Chief Executive Gen Pervez Musharraf that "Pakistan today stands at the crossroads of its destiny which is in our hands to make or break". "These are frightening words that speak honesty of a crisis of a nation. I recall sharing his sentiments. A crisis of governance, corroding the nation's economy, finances, and once proud institutions. A crisis of governance, distorting the distribution of income, wealth and human capital. "A crisis of governance, threatening social justice, harmony, and the very soul of the nation - hope and happiness of the sovereign people of Pakistan," she said. However, the World Bank vice president, who is considered in the donor community as Pakistan's friend, said that her bank was ready to help Pakistan overcome its various crises and that the purpose of holding the PDF meeting in Islamabad was to directly understand the problems the country was facing. She also pointed out that the peace and security in South Asia was a significant factor for the world. "I view this region as one "equaliser" for global economic and political relations, involving, many nations including China, Russia, as well as the Islamic World," she added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010316 ------------------------------------------------------------------- No rise in defence budget: minister ------------------------------------------------------------------- Nasir Jamal LAHORE, March 15: Finance Minister Shaukat Aziz on Thursday said the government did not want to raise its defence spending in the real terms in the next budget but an increase could not be ruled out. "We want to maintain the defence budget at the current level in the real terms after factoring in the impact of inflation. But it may be increased. I can't say anything (right now). It will be known only when the budget (for the financial year 2001-02) is announced," the minister told a questioner at his press briefing here at a computer college. To a question, he admitted that some donors had called for taking measures for enduring peace in South Asia and Afghanistan at the three-day meeting of the Pakistan Development Forum (PDF) that concluded in Islamabad on Wednesday. However, he said, this issue did not come up for discussion as such during the meeting. "The participants and ambassadors of some of the donor countries did discuss it in their meeting with Chief Executive Gen Pervez Musharraf," he said. He reiterated Pakistan's position on the issue of peace in the region, saying "the government was committed to peace but would not compromise on our dignity, honour and sovereignty". DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010316 ------------------------------------------------------------------- CE calls for 25-30% growth in exports ------------------------------------------------------------------- KARACHI, March 15: Chief Executive, General Pervez Musharraf, Thursday called for a 25 to 30 per cent annual growth in Pakistan's export target which, he said, at $10 billion at present was very small. "Although we are sure to create a new record in the country's export history, I am not complacent to this achievement" he said while speaking at the inauguration of Pakistan Hand Knotted Carpet Exhibition '2001, here at Expo Centre. The exhibition was jointly organised by Pakistan Carpet Manufacturers and Exporters Association and Export Promotion Bureau. Acting Sindh Governor, Justice Sabihuddin Ahmed, Corps Commander, Lt Gen Muzaffar Husain Usmani, Commerce Minister Abdul Razzak Dawood, EPB chairman Tariq Ikram and other senior officials besides a large number of foreign buyers also attended the ceremony. "When I look to Malaysian exports of $70 billion and other Far Eastern countries with the exports of 30 to 40 billion dollars annually, Pakistan's target of $10 billion seems to be very small". the Chief Executive said. Pakistan, he pointed out, has all the capacity to increase its exports. "We have human and other resources. Why can't we increase our exports by leap and bound", he said and added that not by 10 to 12 per cent but at least 25 to 30 per cent every year. "If we work harder, I am sure, we will be able to achieve this task". He asked the exporters and government machinery to joint hands and achieve this target. Pointing out that government has fixed the export target of $10 billion for the current year, the CE observed that both Commerce Minister and EPB are striving very hard to achieve this target, But the support of exporters is imperative in this regard. While referring to the problems of carpet exporters, particularly duty drawback payments, soft term loans, land encroachment etc. General Musharraf assured that government will try to resolve them in keeping with the national as well as the exporters interests. These points will also be discussed in the forthcoming meeting with the Commerce Minister and other officials in Islamabad and he will personally see that these are redressed. To the demand regarding removal of encroachment on the Association's land, the CE asked the Acting Sindh Governor and Corps Commander to take measures in this respect. He congratulated the carpet exporters on achieving a new record exports level of $263 million last year after hovering around $200 million for the last several years. However, it was still not sufficient and should increased further. 'Referring to Pakistan's share of 3 per cent in world's total carpet exports of $10 billion, Chief Executive said it must go up to at least 6 per cent. "I want a quantum jump in carpet exports", he maintained and asked the exporters to increase carpet exports to 300 million dollars by the end of the current fiscal year. He described holding of such exhibitions as absolutely necessary to attract foreign buyers and as an export promotional activity. He advised the exporters to produce high quality carpets with innovative designs and colour combination which, he said, are appreciated by carpet buyers world over.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- Trading volume nosedives at KSE ------------------------------------------------------------------- Muhammad Aslam KARACHI, March 16: The turnover figure on the Karachi Stock Exchange on Friday fell to a record low of 45m shares as leading buyers and sellers kept to the sidelines for no apparent terribly disturbing background news. Stray support was evident on selected counters at the dips, which enabled the KSE 100-share index to finish partially recovered but below the psychological barrier of 1,400 points at 1,396.29 as compared to 1,390.06 at the dips. The KSE 100-share index recovered 6.23 points at 1,396.29. It was four-year low volume level. The previous daily volume low was touched at 43.732m shares as bulls and bears withdrew to the sidelines after the Supreme Court rejected Benazir Bhutto's petition for the restoration of her government on June 30, 1997. The other lower figure was recorded at 57.388m shares on June 30, 2000, the all-time record higher trading volume figure being 470m shares established on June 20, 2000. Analysts attributed the terribly low trading volume to the exit of general investors and some big operators fearing a negative impact on stock trading after the introduction of T+3 system that would mean daily clearing possibly by the next month. "The introduction of this system will take away whatever steam is left in the market," said a member of the KSE. "Investors are refixing their investment priorities well ahead the event." The KSE 100-share index managed to recover 6.23 points at 1,396.29 as compared to 1,390.06 a day earlier, reflecting the strength of PTCL and Hub Power, two major weight holders. "We don't think the market has fresh appetite for more unloading as foreign selling is gradually drying up and in some cases is turning into short-covering at the lower levels," stock analysts at the AHRA predict. The index level has already touch the three-month lows from where it is certain to rebound alone on technical grounds, they add. "The market is awaiting some good news from the market leaders, PTCL and Hubco, the two holding about 45 per cent weightage in the index, which in turn could trigger buystops by the end of the current month," stock analysts at the WE Financial believe. But analysts at the Finex Securities think otherwise. "The market is awaiting the return of foreign investors with the same vigour as they did at the time of their exit in January and February, leaving behind crisis-like conditions," they say. As far as the dividend announcements are concerned most of them are on the higher side of the investor perceptions but non of them could rescue the market from the bear onslaught, said a leading broker. However, he foresees a major shift in the market psychology possibly by the next week as by that time, second tranche of $138m from the IMF, and an expected dividend from Hubco could strengthen the investors' confidence. Although advancing issues cut short the strong lead held by the losing ones, the former still remained in deficit at 69 to 83, with 75 shares holding on to the last levels. Leading losers were led by Premier Sugar, Dewan Khalid Textiles, English Leasing, Shell Pakistan and Colgate Pakistan, which suffered fall ranging from Rs2.85 to Rs6. Other notable losers were PSO, Knoll, Reckitt and Colman, Kohat Cement and Attock Refinery, falling by Rs1.40 to Rs1.50. Advancing shares were led by Nestle MilkPak, which rebounded from the recent lows on strong demand and was quoted higher by Rs22.50, followed by BOC Pakistan and Lever Brothers, up Rs4.60 and Rs10. DEFAULTER COMPANIES: Trading on this counter was relatively slow as only four shares came in for stray alternate bouts of buying under the lead of Service Fabrics, up 20 paisa at 0.80 paisa on 2,000 shares and Qayyum Textiles, easy 15 paisa at 0.25 paisa on 1,000 shares. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- Govt to reward tax detectors ------------------------------------------------------------------- Ikram Hoti ISLAMABAD, March 16:The government has decided to pay reward money to tax auditors who detect large scale evasion Informed sources told Dawn here Friday that a sum of Rs78 million has been allocated for improving the sales tax audit of the manufacturing and trade sectors. Out of this amount, Rs18 million would be paid in the next three months to auditors who perform for substantial improvement in tax evasion. This step has been taken to meet the revenue shortfall and improve tax compliance during the remaining period of the current financial year (March-June 2001) The minimum reward amount to be distributed among the auditors would be Rs20,000, while the maximum amount to be paid to an "excellent" auditor, or a team of auditors, would be decided in view of the scale of evasion detected The Central Board of Revenue also intends to reward the auditors in whose areas the maximum tax evasion is detected, considering it as the result of "collective" performance The latest records of CBR indicate that though a substantial increase in the number of registered persons has taken place, the number of those who do not pay any tax at the end of February 2001 stands at 33,500. This is an unprecedented increase in nil- filers registered with the sales Tax Department The domestically collectible amount of the sales tax has also not recorded a desired increase during the current financial year's first eight months. Last year, the CBR had collected Rs28.86 billion on local supplies of goods and services. This amount was 68.32 per cent of the sales tax collected at the import stage (Rs 42.24 billion) DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- Tinplate importers to meet CE ------------------------------------------------------------------- Muhammad Ilyas ISLAMABAD, March 16: The representatives of Pakistan Tinplate Merchants Association (PTMA), Karachi, and Punjab Tinplate Association (PTA) have decided to request an interview with Chief Executive General Pervez Musharraf to invite his attention to the grave consequences of the recent drastic increase in regulatory duty on the import of tinplates. The decision was taken after a meeting with the chairman and other officials of National Tariff Commission (NTC), which fell short of any assurance of an early end to the crisis which, according to them, threatened to destroy the entire tin plate industry. The crisis would render its 50,000 workers jobless and another over half a million workers of other industries using tinplate for packing etc. Also present in the meeting was Tariq Rafi, proprietor of Siddiqsons, operating the sole tinplate-processing plant at Windher in Balochistan. After the meeting, the PTA president Muhammad Aslam Warsi and PTMA chairman Haji Tasleem Qureshi, talking to Dawn, expressed the apprehension that the measure would create a monopoly of the sole operator with only 50 workers, raising its cost with a massive adverse impact on the cost of production of other industries. According to them, not a single importer had cleared his consignments from the Karachi Custom House since March 1, for the simple reason that the increase in tax liability on tinplates from Rs12,600 to Rs22,500 per ton was absolutely unsustainable. By contrast, Siddiqsons Tinplate (STPL) enjoyed total exemption from taxes including customs duty, sales tax and income tax. Huge quantities of tinplate had accumulated at the port and warehouse, while thousands of tons are expected to arrive shortly. Moreover, no LC had been opened since the issuance of the said SRO. This state of affairs was also detrimental to the Pakistan government's prestige as the Pakistani importers fail to fulfil their forward sales contracts with foreign suppliers. In this situation, it was very likely that the importers would decide not to accept the consignments in order to avoid bankruptcy. Should this come about, the banks through which the LCs were opened might lose billions of rupees and face serious problems with the foreign suppliers. Besides, the government stood to deprive itself of Rs15 billion, paid annually by the importers on account of customs duty, sales tax and income tax. This would be the outcome of the impugned SRO, which may increase the tax burden by another Rs900 million. Rafi gave no answer when asked by this correspondent to comment on the importers' charge that the duty had been raised at his instance. He, however, said being located in the special industrial zone (SIZ), his industry was exempted from these taxes. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010316 ------------------------------------------------------------------- 22pc increase in revenue collection ------------------------------------------------------------------- Parvaiz Ishfaq Rana KARACHI, March 15: The Income Tax Department (Southern Region) has achieved a remarkable increase of 22 per cent in revenue collection during the first eight months (July-Feb) of current fiscal, official sources disclosed on Thursday. The collection figures showed that a total of Rs24.833 billion had been netted during this period as against Rs20.3 billion achieved in the corresponding period of last fiscal. Despite 14 per cent increase in revenue target from Rs35 billion of last year to Rs40.5 billion fixed by the CBR for southern region, the performance under the depressed economy is quite commendable. Sources said close monitoring by the income tax department of the withholding tax collecting agents had been the main cause of higher revenue collection, during first eight months of current fiscal. It is quite encouraging to note that collection of direct taxes in February, recorded a jump of 42 per cent at Rs3.207 billion as against Rs2.258 billion of the corresponding period, last fiscal. A major chunk of eight months collection of direct taxes constituted of income tax, followed by withholding, wealth tax and capital value tax (CVT). During the month of February, Rs3.186 billion had been collected on account of income tax, Rs3.020 billion as withholding tax, Rs15 million wealth tax and Rs5.5 million CVT. Income tax collected at import stage stood at Rs1.449 billion. A high official of local tax office told Dawn that there was persistent fall in wealth tax collection, which had been abolished by the government from next fiscal. However, current demand being created by the department to some extent was fulfilling the gap, he added. Nevertheless, the sluggish economic activity and high cost of living, sharply eroding consumers' purchasing power, has badly affected the CVT collection, which is being mainly collected on transactions of real estate and motor vehicles, official said. The IT department has also detected a very large number of concealment cases, which also helped to improve revenue collection. According to official figures, the IT department of Southern Region, during eight months (July-Feb) under review collected Rs24.320 billion on account of income tax as against Rs19.323 billion in the same period last fiscal. Showing 26 per cent improvement. However, the falling wealth tax collection sharply declined by 56 per cent during July-Feb at Rs395 million from Rs892 million of the corresponding period of last fiscal. The lesser CVT collection at Rs45 million from Rs70 million of last year in the same period is an evidence of the fact that there is a steep decline in economic activity and monetary circulation. However, there is a rising trend in the withholding tax collection during July-Feb and stood at Rs21.710 billion compared to Rs18.179 billion collection in the same period last year. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- Petroleum prices cut by 17%: Unified rates for remote areas ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, March 14: The government on Wednesday announced decrease in the petroleum prices ranging from seven to 17 per cent on six different products including petrol, kerosene and diesel. The downward revision, which takes effect immediately, has brought prices to the level at which they had been before the last increase made on Dec 30, 2000. In another significant move towards deregulation, the government has also partially done away with the freight pool system, Secretary Petroleum Abdullah Yousaf told a press conference. The petroleum products will be available at 19 depots at unified prices but the prices at the sale outlets will vary by five to 25 paisas in accordance with the transportation cost from depots to petrol pumps. However, the government would ensure sale of petroleum products at unified prices in remote areas like Azad Kashmir, Federally- Administered Tribal Areas (Fata) and remote areas of Balochistan, Mr Yousaf said. "In fact we have withdrawn the increase announced in the petroleum prices on Dec 30, 2000," he said. Despite an average decrease of 14 per cent on six different products the taxes and duties still constituted over 50 per cent of the retail prices, which Mr Yousaf said "are on the higher side". The government earns Rs16 on sale of every litre of petrol whose price has been fixed at Rs30 a litre. A decrease of 6.98 per cent or Rs2.25 a litre has been made in the price of petrol (MS 87 Ron) by bringing it down from Rs32.25 to Rs30 a litre. The price of HOBC has been reduced to Rs33 a litre from Rs35.25 - a decrease of 6.38 per cent or Rs2.25 a litre. The prices of kerosene and diesel, products largely consumed by people in the low income group, have also been reduced by 7.58 per cent a litre and 15.62 per cent a litre, respectively. Kerosene has been made cheaper by Rs1.25 a litre by bringing its price down from Rs16.50 a litre to Rs15.25 a litre. High speed diesel would be available in the market at the rate of Rs15.40 a litre as its price has been reduced by 16.92 per cent a litre or Rs2.75. Last year the price of diesel, the fuel used in freight and public transport, had been increased by around 90 per cent. In December 1999, when the military government had first revised the petroleum prices diesel was available at the rate of Rs10.50 a litre. Light diesel oil has been reduced by 16.92 per cent or Rs2.75 a litre from Rs16.25 a litre to Rs13.50 a litre. The highest decrease approved by the federal cabinet on the recommendation of the petroleum ministry was in JP-4, aviation fuel used by defence aircraft. Its prices decreased by 16.99 per cent a litre or Rs3.10 a litre. A long outstanding demand of the petrol pump owners regarding the revision of their commission rates has also been accepted by the cabinet, which approved the increase of commission from 2.02 per cent to three per cent. "It was their genuine demand," Mr Yousaf said. Regarding the commission of oil marketing companies he said it would remain unchanged. When asked whether the revision of dealers commission would have an impact on the consumers, he denied, saying that the cost as well as taxes and all expenditures were included in the prices. However, he explained that with the withdrawal of the freight pool system, the price of petroleum products differd from petrol pump to petrol pump. He also said they had approached the Iranian government for the sale of surplus oil as the Iranian government was importing motor spirit from other countries. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- KSE top companies awards: CE sees GDP at 4pc, exports $9.5 billion ------------------------------------------------------------------- Dilawar Hussain KARACHI, March 14: Chief Executive General Pervez Musharraf has said that the annual growth rate this fiscal would be four per cent and the export is expected at around $9.5 billion. He was addressing at the Karachi Stock Exchange Top Companies Awards for 1999, ceremony on Wednesday evening. The chief executive said the GDP growth last fiscal was 4.2 per cent, reflecting improvement over the 3.1 per cent earlier year. Agriculture played the major role in the higher growth rate, particularly the wheat, cotton and rice. He said the agriculture growth would be slack this year, due to prevailing drought, but hastened to add that manufacturing sector would compensate for the shortfall. Musharraf observed that the government had set the export target for this year at $10 billion. Although the actual target would fall slightly short, the improvement of nine per cent over the previous year's target which itself was higher by 10 per cent of the year preceding, was no mean achievement. He said new export markets of Egypt, Iraq and Syria were being tapped. Musharraf stated that he had been conferring with the Pakistan Development Forum (PDF) - a body of all foreign donors - and they had expressed satisfaction over Pakistan's economic progress and the measures being taken to stabilize the economy. "They have assured of maximum possible assistance in the future as well," he said. He said his government had been able to retrieve the economy from total collapse last year and the figures for the first eight months of this year show a 'visible reversal' in the earlier downturn of the economy. He said he had his eye on the revenue collection and the February revenue receipts were higher by 26 per cent over the revenue collected last year. Specific to the stock exchange, Musharraf said the capital gains tax exemption, which is to expire in June this year, would "certainly be" extended in the next budget. Regarding the other demands of the stock exchange, viz tax exemption on bonus shares; tax exemption for clearing house protection fund and investors protection fund and privatization through the stock exchange, he said the government would look closely at them. Also he said the government would be relying on the stock exchanges in accelerating the development of economy. General Musharraf said the Takeover Law was ready for approval by the cabinet and it would shortly be promulgated. He said the government would raise overall effectiveness of market as a mode of resource mobilization and increase the level of integrity and fairness. He stated that the government had last year set an agenda for capital market reforms. This included strengthening the capital market; equity as a vital source of financing; protection of minority interest in companies; corporate governance; information disclosure and curbing insider trading. He said the institution of SECP would be strengthened, law would be framed for easy mergers, takeover and liquidation and removing the impediments to the growth of fixed income securities. Musharraf congratulated the 25 top companies for having won the awards in the economic environment of the 90's, which, he said, he would term "economic disaster". He said such awards create bloodline of competitive environment. Earlier, KSE chairman Yasin Lakhani, in his welcome address, pointed out that the KSE had improved by 80 per cent since July 1998, when the index was 765 points - now at 1,400. He stated that 340 companies had declared dividends for 2000, against 330 last year and more declarations from textile sector were still in the pipeline. But, Lakhani pointed out, less than one per cent of Pakistanis were shareholders and the number needs to be increased to enhance the profile of the market. Lakhani urged that tax exemption on capital gains and bonus shares for a period of five years should be announced before the budget, preferably 'Now'. He asked that takeover law be promulgated and the tax exemption status of clearing house protection fund and investors protection fund be restored. Lakhani asked for induction of elected representatives of the stock exchange to the Economic Advisory Board. In respect of privatization, Lakhani asked that privatization should be made through stock exchanges and secondly in tranches to facilitate absorption. He suggested that preference be given to non- resident Pakistanis in privatization. The chief executive lastly distributed awards to the top 25 companies for 1999: PSO, Al-Ghazi Tractors: Grays of Cambridge; Fauji Fertilizer; Lever Brothers; Kohinoor Weaving Mills; Rafhan Maize Products; Millat Tractors; Cherat Papersack; Shell Pakistan; KASB & Co; Nestle Milkpak; National Refinery: Rafhan Bestfoods; Lakson Tobacco; Dawood Hercules; Thal Jute; Murree Brewery; Engro Chemical; Treet Corporation; Mitchell's Fruit Farms: Kohinoor Raiwind Mills; Sitara Energy; BOC Pakistan and Nishat (Chunian) Limited. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010315 ------------------------------------------------------------------- Pakistan seeks $6 billion soft-term loans ------------------------------------------------------------------- Bureau Report ISLAMABAD, March 14: Pakistan has requested for $6 billion soft- term loan from foreign donors to gradually pay off its huge $21 billion foreign loans during the next four-year period. "We have requested for both soft-term loans and grants at the end of the three-day meeting of the Pakistan Development Forum (PDF)," said Minister for Finance Shaukat Aziz. Speaking at a news conference with World Bank Vice President Ms Meiko Nishimizu here on Wednesday, he said Pakistan has also made it clear that it planned to implement its own home-grown structural reforms programme to revive the economy rather than accepting any foreign recipe. Both were asked whether the donors have taken up the report of the Debt Reduction and Management Committee in which they were expected to help Pakistan by offering $6 billion soft-term loan and $4 billion debt relief for paying its $21 billion foreign debt in four years period. "Yes we have sought their support and received an encouraging response," the finance minister said. Ms Nishimizu said that the donors had received the request for new funding line for Pakistan which would be considered systematically. "We will look into it though it takes time to finalize the process by the bank," she remarked. Responding to a question, the finance minister denied that the PDF participants had raised questions about the revival of democracy or cutting down the defence expenditure. The vice president of the World Bank said that it was Pakistan which had to decide about its economic and political problems. "The theme of the PDF meeting was the economic development of Pakistan which does not have anything to do with political issues," she said. She said that donors agreed with the government of Pakistan that issues concerning good governance, transparency, corruption and re- building of institutions needed to be seriously looked into and that the donors believed that right policies were being implemented to achieve desired results in this behalf. The finance minister said that four specific requests had been made at the end of the PDF meeting which included; soft-terms loans and grants, technical assistance, speedy disposal of loans and that "any project which we undertake should be allowed to be home grown and it should not be donors-driven. Giving details, the finance minister said that 32 presentations were made during the three-day meeting which covered the state of the economy and the whole range of structural reforms being undertaken by the government. He said tax reforms, trade policy, railways and devolution plan received a lot of attention from the over 125 delegates drawn from 18 countries and 14 international donor agencies besides 20 people from the private sector. "What donors have by and large said that there were concerns about the sustainability of reforms beyond Oct 2002," he said, adding that generally Pakistan was offered all possible support to resolve its pressing economic problems. He said that they were assured that the government was taking all necessary measures to ensure that whatever was being done was fully protected and that nobody should be allowed to undo its reform programme. "The participants also asked how the issue of Riba would be resolved and we were doing to restore the investors' confidence," he said, adding that they were pleased to know that the government had started implementing reforms programme. Ms Nishimizu, when asked what was the most important outcome of the meeting, said: "We told them that reducing poverty, good governance and reviving the economy should be taken into consideration more importantly than anything else." The finance minister told a reporter that the participants expressed keen interest in the devolution plan and a presentation was also given by the chairman of National Reconstruction Bureau. He denied that any serious concern was expressed by the participants about this plan. At this stage, Ms Nishimizu said that if any delegate had asked any question about the plan it did not necessarily mean that donors were opposing it. She told a reporter that there were no sanctions against Pakistan and that all possible development assistance was being offered to the country. However, she said that G-7 countries led by the United States had their own priorities which did not have anything to do with the World Bank. "We are a bank and not a country, therefore we cannot be bracketed with G-7 countries," she added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010314 ------------------------------------------------------------------- Change in monetary policy unlikely ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, March 13: Pakistan is determined to follow a monetary policy not too tight to discourage recovery of investment though immediate interest rate-cut is not on cards. Official sources say chances for softening monetary policy are bleak - even in the name of boosting industrial output to make up for an anticipated zero rate of growth in the agricultural sector. Secretary General Moeen Afzal had said in Karachi last week that the on going water crisis could stop the agricultural sector from growing at all in this fiscal year. This situation has raised a pertinent question. Is it possible for Pakistan to cut interest rates so that the industrial sector can deliver more - making up for the shortfall in GDP due to zero growth in agricultural sector? Seemingly the answer is No, because after entering into the IMF standby credit programme, Pakistan has not enough room to move its monetary policy in exact direction of its choice. The IMF has relaxed for January-March quarter some of key performance targets for Pakistan tagged with its $596 million standby credit but even the revised targets do not allow room for interest rate cuts. One of such targets relates to expansion in the net domestic assets of State Bank. Initially, it was set at minus Rs39.6 billion for this quarter but later on the IMF relaxed it by more than Rs45 billion. "We cannot go for interest rate cuts if we have to meet this target," a central banker told Dawn. Government sources said it was also not clear if interest rate cut at this stage would help the industrial sector raise its output to a level compensating for zero growth in agricultural sector. They said cheaper finance was one of several other factors that could help manufacturing sector perform better but in the absence of other factors missing availability of cheaper finance would not help. In fiscal 1999-00, a high 7.2 per cent growth in agricultural sector was a key constituent of 4.8 per cent growth in GDP: manufacturing sector had grown by only 1.1 per cent. Initial growth targets for this fiscal year were set at 3.9 per cent for agriculture and 6.2 per cent for manufacturing. MEDIUM TERM OUTLOOK: Meanwhile, Pakistan seems poised to follow a somewhat softer monetary policy in the medium term - that is if it can find room for doing so amidst a lot of dictations coming in fromthe IMF. The country also seems committed to not only maintaining its market-based exchange rates system and making it more liberal to encourage exports. "We would like to follow a monetary policy not characterized with too high real interest rates in the medium term," said a senior economist attached with the Ministry of Finance. A central banker, who held the same view made it clear that chances for an immediate interest rate-cut was not on cards. A World Bank document reinforces their view. The World Bank report on 'Pakistan's Reform Programme: Progress and Prospects Report' says: "A monetary policy that avoids high real interest rates (which could choke off recovery of investment) and an active exchange rate policy to encourage exports provide the remaining elements of a macro policy mix that would support growth while maintaining macroeconomic stability."Back to the top
EDITORIALS & FEATURES 20010311 ------------------------------------------------------------------- Tsunam ------------------------------------------------------------------- Ardeshir Cowasjee As ever, ignorance is bliss. Who or what is tsunami? I asked a man who had graduated from a madrassah, and was confronted by a blank stare. But he is in good company. A man who had returned from Oxford thought it was a variety of sushi. The man from Cambridge recalled that it was the name of a svelte geisha of Osaka. A woman from Wellesley was frank enough to admit that she had no idea who or what he/she/it was. Tsunami is a long high sea wave caused by an earthquake or other similar disturbances. The origin of the word dates from the late 19th century, a combination of the Japanese words "tsu" (harbour) and "nami" (wave). Tsunami-generated earthquakes mostly occur at the three locations along the Indo-Pakistan coast: in and around the Andaman Sea; in an area approximately 500 kilometers SSW off Sri Lanka; along the Arabian Sea coast, approximately 70 to 100 kilometers south of the Pakistan coastline (which extends over 1,000 kilometers) off Karachi and Balochistan. The oldest record of what now is termed a tsunami dates back to an earthquake near the Indus Delta in the Kutch region, circa 326 BC. History records that whilst Alexander the Great's mighty Macedonian fleet was returning to Greece after his partial invasion of India it was destroyed by an earthquake of a large magnitude. Pakistan was hit by a major cyclone on May 20, 1999, unimaginatively code named "Tropical Cyclone 2A", which was responsible for the death of at least 400 people, and over 60,000 people were said to be missing at one time. In a search for Tsunami + Arabian Sea on the internet, one reference is given on 'The Pakistan Cyclone, May 1999' recorded by the Accident and Disaster Information Service of the International Federation of Consulting Engineers (FIDIC). We are told that: "Cyclone 2A reached the coast of the Arabian Sea with wind up to 270 kmh, and caused tsunami that submerged 600 coastal villages in Thatta and Badin district. The sea water gushed 10km inland of the coast. The Cyclone 2A is said to be the biggest cyclone to have hit this area in this century. "At least 164 bodies were found from Raj Malik village in Thatta district. At least 100 fishermen were caught on their boat. "The infrastructure for water and power supply was destroyed. Also the road and [tele-communications] were cut. The coastal area of Pakistan was completely isolated from other areas. "The damages [to] crops and livestock were estimated to be tremendous. The officials said as many as 60,000 hectares of farmland were destroyed. In the Shah Bunder and Ketty area alone, 152,000 acres of farmland were lost. "The huge dams upstream had weakened the flow of water in the Indus River, and some experts said that the change had made it easier for sea water to gush into the delta area with strong force . . . . . . "At least 50,000 people were displaced to such areas as southern Sindh province. At one time, 13,000 people were living in a camp set up by the army. More than 65 tons of food were distributed to the victims in a week. "Prime Minister Nawaz Sharif announced $1 million for the relief but the governor of the damaged province said that at least $6 million was needed. "Many survivors complained that the rescue teams took too much time to arrive. Also, people attacked by the cyclone claimed that they never received any announcement for evacuation from the government. "The Institute of Human Settlement and Environment has prepared a public safety plan so people will know what to do when they are hit by a cyclone." Was the government of the day prepared to assist the people in distress? Was the government across the border, our Indian friends, equally unprepared? Yes, to both questions. In India, scientists, geologists and engineers spent over two years painstakingly working on a study for the ministry of urban affairs and employment and produced a three-volume "Report of the Expert Group on Natural Disaster Prevention, Preparedness and Mitigation Having a Bearing on Housing and Related Infrastructure' which was published in 1998. One simple point made: "Disasters don't kill people, buildings do." And in India, as in Pakistan, the number of unsafe buildings is increasing every day. It is not a lack of construction standards but indifference to them that kills people. After the Bhuj earthquake, the convenor of the Expert Group, T. N. Gupta, a professional, remarked, "Sadly, our work has been ignored, but that's the way things are in a developing country. Preparedness is not the policy in India. We respond to disasters only after they have taken place . . . . . . Whereas the earthquake in Latur in India killed 9,700 people an earthquake of the same intensity in California killed five." Continuing the lament, the people of India complain that it is only now that editorial writers and columnists in their newspapers are venting their anger. The target of their wrath is the combination of unscrupulous builders and corrupt and negligent politicians. The Statesman, for example, in an editorial noted "Far from taking note of extra reinforcement and proper bonding of pillars, and weight- bearing walls, required for extra protection in earthquake zones, most buildings were death traps before people moved into them." And from an editorial in The Financial Express: "The bigger tragedy is that a very large number of deaths were avoidable, and happened simply because of a culture of lining of pockets that is especially entrenched in municipal authorities and the building trade." The Pioneer wrote to the point: "Those whose greed caused so many deaths must not be allowed to go scot free." We move to Karachi. We are also advanced in our thinking and have a report on the seismic zoning of Karachi prepared by some of our professionals of no mean standing and published by the Association of Consulting Engineers of Pakistan (ACEP) in association with the Karachi Building Control Authority (KBCA). We too have our recommendations for the seismic design of buildings. The writers and publishers have provided an 'Acceptance Criteria' which clearly states that the designation of Karachi in the most severe Seismic Zone IV by the well recognized Uniform Building Code in 1997 was found inconsistent and overrated by the geologists and engineers of Karachi. This they based on the local seismo-tectonic data. Consequently, two seismic committees were constituted by ACEP/KBCA in late 1999 and their report was published in April 2000. It has finally seen the light of day after the Bhuj earthquake and was recently launched by the KDA. The Report states that Karachi is not in Seismic Zone IV but in II- B. But the question is, do our buildings conform to the requirements of even II-B? Talking of death-traps, all we have to do is look at the 17-storey skeleton of an unauthorized commercial plaza which stands near the Nursery Market on our main artery, Sharea Faisal, It has stood for the past fifteen months. It is a monument to the corruption of the KDA/KBCA, and a sign of the betrayal of the citizens by the government and other institutions of the country in partnership with the builders and developers. In April 1999, the KBCA admitted in the Sindh High Court that it has no way of establishing whether the construction being raised is safe and sound since the reports/tests accompanying the building plans submitted to it and approved by it bear no resemblance to the structure eventually raised. The safety and soundness of a building is not arbitrarily determined but is based upon the nature of the soil, the load, the structure and other factors. Yet the ex-parte status quo order granted on 16/12/1999 by Justices Saiduzzaman Siddiqui, Nasir Aslam Zahid, and Sheikh Riaz Ahmad of the Supreme Court, obtained through the not inconsiderable skills of Jadoogar of Jeddah Syed Sharifuddin Pirzada, is allowed by the KBCA to linger on unchallenged to this day. Over the past 20 years, the KBCA, in collaboration with the builders' mafia of Karachi, has become adept at passing the buck for illegal construction on to the judiciary. Should the illegal and potentially dangerous skeleton of the commercial plaza in question unfortunately fall as the result of an earthquake, who will be up for the long jump? One bit of good news is that Omar, Air Marshal Asghar Khan's son and our minister in charge of the environment, is now concerned and is in the process of moving the government to appoint a dedicated Disaster Relief Commissioner for Karachi and Sindh. The name of an able strong man has been suggested to him and we must hope that young Omar moves quickly. The Relief Commissioner can, at no additional cost, pick men for his organization from the overstaffed KDA/KBCA/KMC. What we cannot prevent, we must at least try to mitigate. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010316 ------------------------------------------------------------------- Mahmud and Ayaz ------------------------------------------------------------------- Ayaz Amir WHEN I started in journalism (oh, with so much diffidence) twenty years ago, my hair was black, my face unlined and my mind full of foolish notions. Those being the Zia years, it is a measure of my youthful enthusiasm that I put faith in Ms Bhutto's rising star, believing her to be the answer to the nation's dreams. As youth, alas, is not immortal,the years have taken their toll. My hair is grey and on my face are the wrinkles of age. I am not a wiser man for these changes and my insight into the nature of things is no clearer. But about certain things I am more relaxed. As a journalist, for instance, I am less inclined to strike dramatic poses or adopt positions of extreme cynicism and despair, a temptation to which youthful minds easily succumb. I hope I do not sound like a pontiff when I say that Pakistan is no better or worse than other countries. While not the promised land, or God's gift to humanity, it is also not, as some of its denizens too readily assume, specially marked out for reverses and failure. In other words, it is not a land immune to the laws of common sense. For folly it will pay the price, as it has done in the past. But given some competence and the right national direction, there is no reason for it to stumble in the dark. Twenty years of political hackwork have left some other impressions on my mind. Not for the sake of effect but as an inescapable corollary of our recent history do I say that on its own the army is no solution to anything. The army high command has not distinguished itself in the conduct of war, its true business. In neither of the two major wars fought in the last 53 years did it show strategic flair or intellectual competence. This should be a sobering thought. Mediocre or indifferently competent at its own profession, can it shine in another for which it is equipped neither by training nor by temperament? But it is equally true that the political class has made a hash of things. Take the recent past. Benazir Bhutto and Nawaz Sharif had their chances and blew them. Sharif's political notions were of the most primitive kind. An intellectually limited person, he was only capable of the mess he made. But what about Benazir? She blames the intelligence agencies for her troubles. Doubtless she faced intrigues on that front but was it ISI and MI which took her hands and dipped them in Marcos-scale corruption? The truth is mediocrity rules the roost: as much in the military caste and the political class as in the mandrinate and, I daresay, the press. As for the present order, Musharraf and his generals are nice guys with the right instincts, no doubt about it. The national climate today is more relaxed than at any time since 1958. But what does the other side of the picture show? Drift, an unsophisticated view of politics and a muddled sense of priorities. So what is to be done? Hold elections and transfer power to another National Assembly of political incompetents? Few musical scores are as intoxicating as the rhetoric of democracy. But democracy of the kind we have had is a recipe for disaster. If the generals are not equipped to run the political show by themselves, neither are the politicians. A resurrected or remade Muslim League calling the shots? The PPP once again on trial? The mere prospect is frightening. Ours is a tolerant society, with a known capacity for suffering, but it cannot afford Benazir or Nawaz again. Even with masochists there is an acceptable threshold of pain. Just so much and no more. Vis-a-vis these two wonders we are in this position. If this does not square with the requirements of pure democracy, so be it. The corps commanders are right on this score: no political future for Pakistan's most famous duo. As for the beguiling theory that to solve the problems of democracy we need more democracy, we can do without it. Lower the floodgates of democracy and all we will get are substitute versions of the original Benazir and Nawaz models. No, if it be laid down as the first commandment that Pakistan's generals should not occupy the bull-ring by themselves, the second is that Pakistan's politicians should not be allowed to run loose on their own. As each is a menace more threatening than the other, both together must forge a pragmatic partnership. Armchair revolutionaries and democratic purists, of which Pakistan has more than its share, need not be alarmed. A civil-military partnership need not assume a structural form. The repeated insistence on the hybrid animal called a national security council only reveals the poverty of the military mind. If there is such a council and generals, air marshals and admirals sit on it they will simply suffocate democracy and not allow it to function. We will be back to square one. A civil-military partnership has to be like the British constitution, unwritten but faithfully followed. Parliament and prime minister must learn to tread softly. The space for democracy must be extended slowly and gradually, less through the letter of the constitution than through ability and performance. What, after all, is the constitution? On its own it is helpless before the rifles of 111 Brigade. To be sure, defiance is a great thing. But what is the reality? Pakistani politicians out of power are either windbags or sycophants - preaching verbal revolution, which harms no one, or cringing before authority. In power they behave like professional wrestlers. There must be a tempering of these two extremes. How then to safeguard the army's concerns? By embodying them not in any mythic unicorn and calling it the national security council but in the person of the president who should not be the neuter that he is at present but at the same time not so powerful that he makes a hobby of dismissing governments. The Eighth Amendment president brought grief to Pakistan. We should be taking a closer look at the French model wherein the prime minister runs domestic policy while the president looks after foreign policy and national security. As for the proposal aired in some quarters that while the president should not be able to axe the National Assembly (as the Eighth Amendment president was able to do) but only prime minister and cabinet, this will take us back to the Ghulam Muhammad and Iskander Mirza eras when at presidential bidding a succession of prime ministers hurtled through a revolving door. Of Ayaz, the great Sultan Mahmud's favourite slave, it is said that when he had risen in royal favour he would oft go to a secret chamber, there put on the rags he wore as a slave and standing before the mirror say to himself, "Ayaz, qadr-i-khud beshanas". Which is to say, don't forget thyself. For long Pakistan's strutting heroes have attempted to walk in Mahmud's footsteps, with not an iota of his ability. For a change they might remember the example of his slave. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010317 ------------------------------------------------------------------- The limits of sovereignty ------------------------------------------------------------------- Irfan Husain THE recent international furore over the wanton destruction of the two Buddhist colossi at Bamiyan by the Taliban demonstrates yet again how the world has shrunk, and the extent to which we are interdependent. No country is an island unto itself any longer. Despite the Afghan leadership's protestations that their bizarre behaviour was "an internal religious matter", the rest of the world was simply not buying this argument. Gradually, the international community has been moving towards a set of rules of acceptable behaviour, and it is now considered to be as morally reprehensible and irresponsible for the Taliban to dynamite millennia-old statues, as it would be for the Egyptians to bomb the pyramids. Similarly, genocide is simply not tolerated even under the guise of "internal security." The treatment of citizens is no longer the sole concern of individual states: the United Nations and its members, as well as human rights organizations the world over, track and condemn violations of individual liberties and rights. Thus, voices are raised over mistreatment of individuals or groups; gross aberrations are occasionally punished through collective action; and forces representing either the UN or organizations like NATO are dispatched in extreme cases. Of course, the system of enforcement remains imperfect and full of loopholes, but there is a growing consensus that the global community has a responsibility to intervene where the behaviour of a government is absolutely intolerable. For instance, other countries continue to condemn the massacre of Armenians by the Turks over 80 years after the event. Not long ago, states would hide behind the convention that others should not interfere in their internal affairs, but this cover is now wearing thin, especially as satellite television brings horrors into homes, thus mobilizing international public opinion. For instance, the atrocities committed in East Pakistan by our troops (and described vividly in the Hamoodur Rahman Commission report), would be inconceivable these days. Thirty years ago, Yahya's military government fended off international criticism by shameless denials and the constant recourse to the civil war being Pakistan's "internal affair." Despite the lack of instant images, India was still able to mobilize sufficient support to attack and break up Pakistan without a tear being shed anywhere in the world. Of course, the weaker a state, the more vulnerable it is to international pressure. Sovereignty is relative, not absolute, but stronger and richer countries can assert themselves more effectively on the world stage and remain free of any interference. Thus, despite the worldwide push towards democracy and equal rights for women, oil-rich Arab countries can remain immune to calls for participatory governments and women's rights. Similarly, the United States can sabotage international efforts to establish a permanent World Court to try cases of international human rights abuses as it insists on exemptions for its citizens. Countries like Afghanistan are so far outside the ambit of international norms and discourse that they are immune to pressure as well. Thus, their arms cannot be twisted by threats to cut off aid, grants or trade relations because they have none anyway. This freedom of action can be a mixed blessing. While the leadership can reject appeals to surrender Osama bin Laden, the Afghan people suffer under a myopic and medieval government that dictates the length of women's veils and men's beards. Indeed, the Taliban seem to have no other concern but the outward appearance of their citizens. Had Afghanistan been even loosely integrated into the international system, it would have come under pressure to tone down some of its more regressive ways. But without representation in any international forum, it feels free to go its own way, warnings of disaster ahead notwithstanding. Many nations have surrendered a part of their sovereignty voluntarily in order to achieve certain collective ends. To join the European Union, for example, member states have agreed to subordinate many of their laws, rules and regulations to a legal framework arrived at through collective bargaining and agreements. Thus, large swathes of legislation are no longer within the purview of national parliaments. Clearly, this arrangement is viewed as beneficial by the majority of the people living within the EU, even though politicians rail against it from time to time. Although national sovereignty is jealously guarded, it cannot be an end in itself. We surrender a portion of it every time we enter into an international agreement committing us to certain obligations. By joining the United Nations and its various bodies, we have pledged adherence to its Charter and its principles. By agreeing not to conquer foreign territory by force, for example, we are (hopefully) safeguarding our own territory from invasion by others. And by agreeing to the principle of the sanctity of international contracts, we are protecting our own commercial rights. However, by breaching such a contract by preventing Hubco from seeking recourse through international arbitration, the government has ensured that in future, foreigners will think ten times before investing in Pakistan. Nations cannot escape the responsibility that comes with their support of other countries. Thus the United States is often blamed, especially by Muslim countries, for Israel's overbearing arrogance and unchecked aggression because of its open-ended support of the Jewish state. It is clear that without American military, financial and diplomatic assistance, Israel would have had to modify its behaviour and learn to live with the normal compulsions and limitations of a small state. Similarly, Pakistan cannot distance itself from the Taliban's aberrant behaviour: by virtue of having financed the movement and giving it the military and logistic support to become the paramount power in Afghanistan, the government and its various overt and covert agencies must accept responsibility for the actions of Mullah Omar and his government. Indeed, despite our government's opposition to the destruction of Buddhist statues, many countries do not absolve Islamabad of some blame in the matter. To them, we are one of only three countries in the world to recognise the Taliban regime, and continue assisting them financially and militarily, and therefore should have considerable leverage with their leadership. However, in their search for the elusive "strategic depth" our military has been seeking, the government has failed to exert the kind of pressure on the Taliban as it could and should have. Belatedly, the government has woken up to the very real danger posed to Pakistan by religious extremists. Never mind that it has taken hundreds of lives to focus minds at GHQ, the recent proclamations by Generals Pervez Musharraf and Moinuddin Haider are nevertheless very welcome. However, they must realize the contradiction between clamping down on armed sectarian groups internally while leaving them free to pursue their jihadi aims elsewhere. This gives them a legitimacy and a licence that must be withdrawn, otherwise Pakistan will have to accept responsibility for their actions.
SPORTS 20010316 ------------------------------------------------------------------- Wasim stabs Moin in the back ------------------------------------------------------------------- Reporter KARACHI, March 15: Sacked former captain Wasim Akram has complained to the chairman of the Pakistan Cricket Board (PCB) against the leadership, approach and attitude of skipper Moin Khan. According to highly placed sources, Wasim, who returned from New Zealand earlier this week after breaking down once again when the team needed him, held a closed door meeting with Lt Gen Tauqir Zia in Lahore who gave him a patient hearing. "Wasim spoke against Moin. He had a bagful of grievances against the wicketkeeper," insiders in the board said. Wasim's major objection was Moin's working relationship with team coach Javed Miandad. Sources said Wasim outlined how the two were creating a rift between the players and the cricket administration. He also briefed the general about the closed door meetings the players had to counter the selectors decision to call Saqlain Mushtaq back. In one of the meetings, eight players had contemplated returning home. Moin is not the first captain against whom Wasim has started a crusade. In fact, he pulled out from the second Test against Sri Lanka under Ramiz Raja in 1995-96 after Pakistan had won the opening Test. Ramiz was eventually sacked after Pakistan lost the series 2-1 and later failed to qualify for the tri-nation final in Sharjah. Wasim later let Saeed Anwar and Aamir Sohail down while it was his sudden appearance in South Africa in 1998 which disturbed the atmosphere of the Pakistan team. Need not to say that Pakistan lost the Port Elizabeth Test after winning the Durban game under Rashid Latif. Interestingly, all the four captains were replaced by Wasim. However, he is unlikely to get another chance to lead Pakistan after he was censored, fined and recommended never to be appointed captain by Justice Malik Mohammad Qayyum who investigated the charges of corruption in Pakistan cricket. Moin, who was said to be a truth lieutenant of Wasim until he took over the charge in March last year, had forced the inclusion of the left arm fast bowler after he was dropped from the tour to Sharjah on fitness grounds last year. Wasim had missed the second and third Tests against Sri Lanka and the selectors had demanded his fitness before considering him for the four-month tour to Sharjah, West Indies, Dhaka and Sri Lanka. ------------------------------------------------------------------- You can subscribe to DWS by sending an email to <subscribe.dws@dawn.com>, with the following text in the BODY of your message: subscribe dws To unsubscribe, send an email to <unsubscribe.dws@dawn.com>, with the following in the BODY of you message: unsubscribe dws ------------------------------------------------------------------- Back to the top.
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