------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 5 May 2001 Issue : 07/18 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS =================================================================== NATIONAL NEWS + Musharraf rules out military option + CE in Myanmar, holds talks with Shwe: MoU signed + US likely to lift curbs on Pakistan: Shaukat claims assurances + Hanoi calls for Kashmir talks, Afghan peace + Operation against illegal weapons soon, says Moin + India-Pakistan officials to meet in Colombo + India gave no notice of war-games, says FO + Sanctity of Torkham border restored + High Court puts IRSA, WAPDA on notice: Water shortage in Sindh + ARD men clash with police, court arrests + US flays crackdown on ARD workers + Benazir criticizes use of force + Government asked to solve labourers' problems: May Day observed + Welfare package for workers + Usmani named deputy army chief + Karachi to have 18 towns, 178 Union Councils + CNG conversion reduces petrol consumption by 18% + Pakistan, Iran to sign pact to avoid double taxation --------------------------------- BUSINESS & ECONOMY + IMF sees weak economic prospects + Law to streamline hostile take overs of companies soon + Central Board of Revenue asks cos to pay dividend in 7 months + Shaukat optimistic of World Bank facility: Poverty reduction + Minimum investment condition waived: Corporate farming + Tax relief for banks, cos being worked out: Budget 2001-2002 + Pakistan assured of $700 million World Bank credit + Privatization plan fails to attract investors + Allocation of 5% GDP to farm sector: Conference proposes --------------------------------------- EDITORIALS & FEATURES + Our politicians Ardeshir Cowasjee + The Burma Road Ayaz Amir + Never a dull moment Irfan Husain ----------- SPORTS + Waqar's men most talented in world, says Pybus + Waqar wants to team up with Wasim + Rawalpindi Express' derails again: Team off to England
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010505 ------------------------------------------------------------------- Musharraf rules out military option ------------------------------------------------------------------- HANOI, May 4: The chief executive, Gen Pervez Musharraf, called on the Vietnamese President Tran Duc Luong on Friday and discussed matters of bilateral cooperation, besides regional and international issues. Foreign Secretary Inamul Haq briefed newsmen later that the CE had told the Vietnamese president that the situation in South Asia was "destabilized due to Kashmir issue". Gen Musharraf said Kashmiris were engaged in the freedom struggle and they would continue it till the achievement of their right to self determination. "So far," he stated, "75,000 Kashmiris have sacrificed their lives for their just cause." The CE felt that "a military solution" to the Kashmir issue was not possible and Pakistan was keenly interested in a solution through dialogue between the three parties - Pakistan, India and Kashmiris. President Luong said India and Pakistan should find a way to promote peace and stability in South Asia, and work for resolution of all the issues, including Kashmir. About Afghanistan, he said he was happy to know that Pakistan policy towards Afghanistan was based on moderation and responsibility. Referring to bilateral ties, the Vietnamese president said these would be mutually beneficial. He said today's world provided a number of opportunities and challenges to developing countries. He expressed happiness on the trade agreement signed by the two countries. There was vast potential of promotion of cooperation between Pakistan and Vietnam, he observed. The CE invited Vietnamese president to visit Pakistan which he accepted. The date of the visit would be worked out by the foreign ministries of both countries.-PPI AFP adds: The CE and President Luong held talks here on Friday and pledged to boost economic cooperation, officials said. Gen Musharraf and the president expressed their "common desire" to strengthen relations, notably economic and trade links, they said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010502 ------------------------------------------------------------------- CE in Myanmar, holds talks with Shwe: MoU signed ------------------------------------------------------------------- YANGOON, May 1: The Chief Executive, General Pervez Musharraf, and the Chairman of the State Peace and Development Council of Myanmar, Senior General Than Shwe, on Tuesday held wide-ranging talks in Yangoon on bilateral co-operation, and regional and international issues. The CE who arrived earlier in the day from Islamabad on a three-day official visit, briefed the Myanmar leader about the policies of his government, economic revival and return to democracy in Pakistan. General Than Shwe welcoming the chief executive said the visit will help promote co-operation between the two countries. He said contacts between the two were not frequent and these should be geared up with focus on economic co-operation. About regional issues General Than Shwe said Myanmar is keen to promote rapid progress in the region.-PPI DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- US likely to lift curbs on Pakistan: Shaukat claims assurances ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, May 3: Pakistan has been assured that the Bush Administration will soon look into the issue of lifting international sanctions against it. "I was assured by US Secretary of Treasury Paul O'neil that he would take up the issue of lifting sanctions against Pakistan with Secretary of State Colin Powell," claimed Finance Minister Shaukat Aziz here on Thursday, adding "they have promised to review sanctions against Pakistan." Speaking at a news conference after a week-long visit to the US where he had also met senior officials of the World Bank, IMF and IFC, he said he had held wide-ranging discussions with the US authorities. But the key meeting, he stated, was with the Secretary of Treasury at which they discussed increasing bilateral co- operation with special reference to removing sanctions against Pakistan. "We informed the US officials that sanctions are counter-productive and increasing poverty in Pakistan and due to these sanctions we cannot get investment. These sanctions deter normal commercial activity". Mr Aziz said he had not discussed political issues relating to the lifting of sanctions. "Perhaps there are other forums where political conditions could be discussed," he said, adding that he had confined himself to informing the US authorities that sanctions were harming the common man and increasing poverty. The minister had met Senator Brownback and other important people and received an encouraging response to get the sanctions removed against Pakistan. He had also discussed with USAID authorities a concessional lending for Pakistan. Mr Aziz said the US government had also been urged to help Pakistan in getting support from International Financial Institutions (IFIs). About his meetings with the World Bank and IMF officials, the minister said that Bretton Wood institutions were extending all possible financial support to Pakistan. Giving details, he said the country was likely to get the third tranche of $130 million, out of $596 million Standby Arrangement (SBA) within this month. He was hopeful to have IMF's Poverty Reduction Growth Facility which would replace the SBA, expiring in September. The PRGF, he added, was a medium-term facility likely to be offered on nominal interest rate. "We are hoping to have the PRGF by October." "We have been told that the donors will not be tough on fixing higher targets relating to growth deficit etc., in the next budget due to drought," he said. Talking about his meeting with WB president Wolfenson, he said that Pakistan had been assured to have around $700 million. As a first step, he added, $350 million Structural Adjustment Credit (SAC) had been agreed which would be approved by the board of the World Bank on June 14. He pointed out that Banking Sector Adjustment Loan amounting to $250 million to $300 million was expected to be offered soon. Similarly, he said, $50 million had been proposed by the World Bank for the health sector and $40 million was being expected for oil exploration. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- Hanoi calls for Kashmir talks, Afghan peace ------------------------------------------------------------------- HANOI, May 3: Pakistan and Vietnam on Thursday called for resolution of the Kashmir issue through peaceful means and for restoration of peace in Afghanistan. Foreign Secretary Inamul Haque stated this after official talks held between Chief Executive Gen Pervez Musharraf and Vietnamese Prime Minister Phan Van Khai. Talks were held soon after the CE arrived here on the first visit to Vietnam by a Pakistani head of government since the two countries forged ties nearly three decades ago. Mr Haq said: "The chief executive briefed the Vietnamese prime minister on the issues of Kashmir and Afghanistan. The chief executive stated that Kashmir is the core issue which is threatening peace in South Asia." Gen Musharraf told the Vietnamese premier that Pakistan wanted to resolve the Kashmir issue through peaceful means and dialogue. The CE hoped that India would respond to the offer for talks and that the two countries would be able to resolve the lingering issue through peaceful negotiations. "He said that Pakistan was looking for peace with dignity and honour, and told the Vietnamese prime minister that there could be no military solution to the Kashmir issue," the foreign secretary said. The CE also briefed the Vietnamese PM on the Afghanistan situation and stated that the international community must understand the reality of the situation and should engage the Taliban to moderate their views, as sanctions were not likely to resolve the problem. Gen Musharraf underlined the need for peace in Afghanistan. He pointed out that Vietnam, which had suffered many years of conflict, could very well understand the plight of the Afghan people whose country had suffered for more than two decades of conflict. The Vietnamese PM agreed that all the disputes must be resolved through peaceful negotiations as there could be no military solution to these problems. He expressed the hope that Pakistan and India would negotiate to resolve the Kashmir problem. On the Afghan issue, the Vietnamese PM said that peaceful environment must be created for the reconstruction of Afghanistan. He recalled Vietnam's own experiences. The CE stated that Vietnam was an important country of the Asia Pacific, and recognizing its importance, Pakistan had opened its mission at Hanoi. He hoped that Vietnam would also open its embassy in Pakistan. It was agreed that both sides should enhance economic and commercial co-operation and with that objective in mind, it was agreed that a joint ministerial commission would be established between the two countries in the next few months. It was also agreed that the two sides would co-operate in the areas of science and technology, and trade volume would be increased through examining ways and means. The Vietnamese PM suggested that the two countries should co- operate in the agriculture sector and an MoU would be signed in various disciplines, particularly in science and technology. The CE extended invitation to Prime Minister Phan Van Khai and the Vietnamese president to visit Pakistan which the Vietnamese PM accepted. Later, the two sides signed a trade agreement. It was signed by the Vietnamese Vice Minister for Trade and Foreign Secretary Inamul Haq.-Agencies DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- Operation against illegal weapons soon, says Moin ------------------------------------------------------------------- ISLAMABAD, May 3: Interior Minister Moinuddin Haider on Thursday announced that by the end of the month the government would mount an operation for recovering illegal weapons and re-validation of licences. Speaking at a seminar on "Pakistan's Policy to Manage Extremism and Terrorism" organized by Foreign Service Academy, he said, all assault weapons would be banned and the tribal areas had been asked to surrender such weapons. People in the Mohmand agency had surrendered a large quantity of ammunition voluntarily, said. He said a new law in this regard was ready for presentation before the federal cabinet. The minister said just solution of Kashmir and Afghan issues could guarantee elimination of extremism and terrorism in the region. If the United Nations resolutions had been honoured and the Afghan problem had not been there, the situation in the region would have been different, he said. Moin Haider said "we believe in a moderate way and have not been an extremist society except a very few." He said that the recent incidents of extremism were due to situation in Afghanistan and India. He said Soviet invasion of Afghanistan gave rise to narcotics and weapons in the region while the Jehad started when the US intervened to fight out Soviet Union. Before that there was no 'Madressah' or militancy, he said.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- India-Pakistan officials to meet in Colombo ------------------------------------------------------------------- NEW DELHI, May 3: The Saarc Secretary-General, Nihal Rodrigo, said on Thursday that foreign secretaries of India and Pakistan will certainly meet on the sidelines of a two-day meeting of the association's standing committee at Colombo, commencing from June 8 next. Speaking at a luncheon meeting at the Foreign Correspondents' Club here, he said that the preparatory meeting of the senior officials would be held on June 6 and 7."Foreign secretaries of India and Pakistan will certainly meet on the sidelines of the Saarc standing committee meeting," he remarked.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010503 ------------------------------------------------------------------- India gave no notice of war-games, says FO ------------------------------------------------------------------- ISLAMABAD, May 2: Pakistan said on Wednesday that India gave it no notice of its plans to hold corps-level exercise and said New Delhi's statement on this count was incorrect. Pakistan has not received any notice from India of the exercise by a corps-level force of the Indian Army in early May about which India made an announcement on April 30, said a statement by the ministry of foreign affairs. "Under the Pakistan-India agreement on advance notice on military exercise, manoeuvres and troop movements of 1991, each side is required to give advance notice to the other side of all exercises at corps level within a distance of 75km from the international boundary, the Line of Control or the working Boundary," it said. "Pakistan is therefore watching the situation closely," it said. - APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010503 ------------------------------------------------------------------- Sanctity of Torkham border restored ------------------------------------------------------------------- Muhammad Ali Siddiqi KARACHI, May 2: The government last month stopped the entry of four Afghan ministers into Pakistan because they were crossing the border without valid documents, Interior Minister Moinuddin Haider disclosed on Wednesday. Mr Haider divulged this information to substantiate his claim that the military government had restored the "sanctity" of the Pakistan-Afghanistan border. "Whichever way you go," he said, "you have to show valid documents at Torkham." The four Taliban ministers were coming to Pakistan to attend the Deoband conference, which was organized by the Jamiatul Ulema-i- Islam at Taro Jaba on April 9-11. Mr Haider was informed by a JUI leader that the four had started for Pakistan and could not be turned back. However, Mr Haider said, he told the JUI leader that Pakistan was "a responsible state" and that it had to observe the UN sanctions with regard to Afghanistan, including those relating to Afghan leaders' movements beyond their borders. Mr Haider gave several examples to prove that Pakistan was now insisting that people crossing the Pakistan-Afghan border must carry passports and visas in whichever direction they were heading. Previously, he said, hardly a dozen people went to the Pakistan Embassy in Kabul to obtain a visa; now hundreds were doing that daily, he told editors and senior journalists at a luncheon meeting at the State Guest House. The retired general said no Pakistani was now proceeding to Afghanistan to take part in the war against the Northern Alliance. "As against this, the Northern Alliance is receiving arms and money from many sources." Even though the interior minister's talk began with a "debriefing" about the events of May Day and the abortive ARD rally in Karachi, Afghanistan occupied a considerable part of Mr Haider's time. The former Sindh governor said the rush of Afghan refugees into Pakistan had been tackled. Previously, 30,000 to 40,000 refugees entered Pakistan a month. Now this had been reduced to a trickle. The interior minister felt sorry that the outside world had failed to take notice of positive developments in Pakistan, including the successful war on narcotises and poppy cultivation. He had witnessed the destruction of tons of heroin, but the foreign media had failed to report this. Recently, he said, a foreign dignitary concerned with drugs called on him, but he had no knowledge that Pakistan had destroyed heroin worth millions of dollars in street price. The retired general also claimed success in the war on illegal arms and said it was wrong to say that arms were still being displayed. The law against the display of arms was being enforced strictly and even-handedly, and he had asked the police to take action no matter who flouted the law. He denied that the government looked the other way while the religious activists displayed arms. At the Deoband conference, he said, weapons were nowhere to be seen. Mr Haider denied that Pakistan was supplying arms and money to the Taliban government. Islamabad had no money to give to Kabul. As for arms and ammunition, the illegal weapons that one found in Pakistan had in any case come from Afghanistan. During the fight against the Soviet Union, he said, the Americans had supplied the Mujahideen with unlimited quantities of arms. Huge quantities of arms were still there, he said, and would probably last another ten to fifteen years. The interior minister asserted that the government would not allow "agitational politics," though indoor political activity was permitted. A political meeting inside a house was permitted, he said, but if the same meeting concerned itself with plans for a rally in violation of the ban, then the government was justified in taking action. He disagreed with a journalist's suggestion that the government set up "a Hyde Park" to let the people ventilate their grievances. The press was free, he said, and this enabled the political parties to convey their views to the people. A look at the newspapers would reveal, he said, that the Chief Executive, the chiefs of the National Accountability Bureau and the National Reconstruction Bureau, he himself and other top officials were being criticized freely. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010503 ------------------------------------------------------------------- High Court puts IRSA, WAPDA on notice: Water shortage in Sindh ------------------------------------------------------------------- Shamim-ur-Rahman KARACHI, May 2: A division bench of the Sindh High Court on Wednesday put the Indus River System Authority (IRSA), ministry of water and power and others on notice for May 22, in a petition directed against the water shortage in Sindh and improper and unjust exercise of power by them. The petition has been filed by Aziz A Shaikh advocate in which besides IRSA, ministry of water and power, WAPDA and the provincial ministry of irrigation, have been made respondents. His contention is that the first three respondents were misusing the power vested with them under IRSA Act 1992 read with the Water Accord of 1991. The petitioner is co-owner of 50 acres farm (on 30 years' lease) located in Deh Narather, Gaddap NC-30 District West, Karachi. His contention was that until about 10 years the annual flow of River Indus was about 209,542,000,000 cubic meters, twice that of Nile and three times that of the Tigris and Euphrates combined. When a member of the bench observed that water situation has improved now, the petitioner referred to the immense loss due to damage to crops in the province. Referring to the inflow of water in the Indus last week, which was roughly 14,100 cusecs, the petitioner maintained that the reason for the alarming shortfall is intentional and self- created by WAPDA, with the alleged blessings of respondents No. 1 & 2. He claimed that the denial of water share has drastically affected rights of petitioner and all human beings living within territorial jurisdiction of this Court. In this context he referred to the loss of Rs33 billion suffered owing to water crisis. The petitioner also claimed that former minister of the ministry of water & power has intentionally violated IRSA Act and introduced the so-called "Khar" concept of "Historical use of Indus River water". Accordingly, due share per Water Accord 1991 was reduced by 18% for the province of Sindh which resulted in the destruction of irrigation. The improper, discriminative and unjust denial of water apportionment to the province of Sindh has resulted in 80 canals and 800 distributaries going virtually dry, and an area of 675,000 acres in Badin district alone getting destroyed, the petitioner submitted. So far 1,140,556 acres of agriculture land has been inundated by sea water in 6 coastal belts in Thatta district, the petitioner submitted, citing official survey report which suggest that on an average 312 acres were being inundated every day. His contention was that water share distribution formula, commonly known as "AGN Kazi formula" was shelved by respondents 1 & 2 just to benefit Punjab, which has almost dried canals in many districts of Sindh, including where the petitioner resides. Un-polluted, pure and contamination-free water's availability has become a difficult proposition and being sold at a minimum of Rs350 per tanker in District West and South, where the petitioner resides. Water crisis has almost finished the crops sowing, harvesting or cultivation of land of petitioner and other farmers besides fish, cattle and poultry farming in District West, Karachi as underground water level has gone below 450 feet (earlier it was between 250 to 300 feet) for irrigation through tube-wells. The newly-constructed Gaddap Dam is virtually without water since last four months and continued denial of water share by respondents has offended Article 9 of the Constitution. The petitioner submitted that he is now paying over Rs350 per water tanker to get the most contaminated and polluted water. This, as a result of almost 5000-cusecs of water shortage per day or around 18% less water than apportioned and guaranteed under Water Accord 1991 for Sindh. He submitted that people have started migrating from many districts of Sindh including, Mithi, Tharparkar, and Thatta districts due to non-availability of water which happened to be sacred and valuable right of citizens guaranteed under Art 9 of the Constitution. Respondent No. 4 has failed to protect life & liberty within Sindh, perhaps made helpless by intentional & deliberate short supply of water via River Indus as a consequence of condemned & rejected "Khar concept". The petitioner and other farmers depending upon tube-well irrigation are suffering heavy losses due to the decrease in the underground water level by the day. The cost of irrigation has gone 50% higher than it was in early January 2001 due to extra spending on further boring of 100 to 150 feet deeper tube-wells. Respondents are not sharing underground water resources with Sindh. On the contrary they were deriving full benefit from natural resources including oil and gas from Sindh and Baluchistan. The petitioner prayed for declaring that denial of due water share by respondents No. 1, 2 & 3 is contrary to Water Accord of March 1991 read with IRSA Act 1992. He also prayed for directing the provincial irrigation authorities to quantify the losses incurred (in terms of money) by various districts within the Sindh province and submit recommendation before Nazir of this Court within two weeks. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010502 ------------------------------------------------------------------- ARD men clash with police, court arrests ------------------------------------------------------------------- Arman Sabir KARACHI, May 1: Hide-and-seek game continued on Tuesday between the police and the political leaders and workers in the city after the government prevented the Alliance for Restoration of Democracy (ARD) from holding a rally at Nisther Park. Although the rally could not take place because of heavy deployment of the police and paramilitary forces in and around the proposed venue, the ARD leaders and workers appeared in groups at different places in the city and presented themselves for arrest. The most affected area was Bacha Khan Chowk in Orangi Town where unruly mob suddenly emerged at Khyber Bridge near Bacha Khan Chowk. The people had first gathered at the narrow lanes linking to the Chowk and then converged on the road in such an organised manner that the police and paramilitary forces were caught off-guard. The people, wearing red-scarves, carried placards and chanted slogans against the present government. The police officials, wearing helmets and holding staves and shields in their hands, tried to control the mob. As they attempted to disperse the people, it resulted in a clash between them. The enraged people tossed stones at the police which in turn baton-charged them. The police also lobbed tear-gas shells and resorted to firing in the air. The police claimed arresting at least 25 people for being allegedly involved in riots and breach of peace. Even though the people dispersed and moved into narrow lanes linking to Bacha Khan Chowk, the hide-and-seek game continued for more than an hour as the people kept coming out of the lanes to pelt the police with stones. The police lobbed teargas shells to disperse them. Due to heavy shelling, the smoke filled the houses resulting in the inmates, including children, getting fainted, the residents said. The entire market area of the Bacha Khan Chowk was closed and the police blocked the road for vehicular movement for hours. The second incident of violence was witnessed at Lyari near Lea Market where the activists of Pakistan People's Party assembled on the road and chanted slogans against the government. The police, armed with clubs and teargas shells, baton-charged the angry protesters and fired shots into the air, actions which sparked clashes. The police hurled teargas shells to disperse the mob. The people answered with stones. The police arrested PPP leader Abdul Khaliq Juma, and 30 other people on the spot. The entire area of Lyari, known to be a PPP stronghold, saw a heavy deployment of the police and the paramilitary forces. Most of the roads and streets of Lyari were sealed for vehicular traffic. The posh locality across the Clifton Bridge, dubbed by many city within a city that kept itself aloof from disturbances, on Tuesday broke with the past when a number of political leaders courted arrests from the vicinity of Abdullah Shah Ghazi's Mazar. PPP Sindh leaders and activists, led by Nisar Ahmad Khuhro, Taj Haider, Munawwar Suhrawardi, who wanted to lead a caravan up to Lyari from where they were supposed to offer arrest, were intercepted on main Clifton area, near Russian Consulate by the police force. As they came out from their vehicles, the people standing around started raising slogans in support of Bhuttos and "Wazeer-i-Azam Benazir". Before he and his colleagues were whisked away in mobiles, Nisar Ahmad Khuhro waved to the crowd, making a "V" sign and had a brief talk with the newsmen. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010503 ------------------------------------------------------------------- US flays crackdown on ARD workers ------------------------------------------------------------------- WASHINGTON, May 2: The United States on Wednesday criticized a crackdown on a May Day pro-democracy rally in Karachi as "without appropriate justification." "We are disappointed that the government of Pakistan continues to suppress political activity," said State Department spokesman Philip Reeker. "The government's arrest of potential demonstrators without appropriate justification ... calls into question the Pakistan government's commitment to protect civil liberties, such as the freedom of assembly, a key component of good democratic governments," he added. Karachi was put under a security sweep on Tuesday after the government of military ruler General Pervez Musharraf refused permission for the 18-party Alliance for the Restoration of Democracy (ARD) to stage a rally. Police said about 300 people were arrested on Tuesday. Hundreds more were rounded up in the run-up to the stalled protest.-AFP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010502 ------------------------------------------------------------------- Benazir criticizes use of force ------------------------------------------------------------------- Ahmad Hasan Alvi ISLAMABAD, May 1: Benazir Bhutto on Tuesday criticized the government for what it called high-handedness and use of force for stopping the leaders and workers of the PPP and other parties from reaching Nishtar Park in Karachi for a rally on the May Day. "The use of force against peaceful political workers has exposed the sandy foundations on which the regime is standing," Ms Benazir said in a statement on Tuesday. She paid tribute to the courage and steadfastness of the political workers. "Freedom-loving people anywhere salute your courage and heroism," she said, adding that "your sacrifice and steadfastness has brought democracy many steps closer in the country." She said the government's overreaction would only provoke the political forces and workers into giving one last push to the dictators. The Alliance for Restoration of Democracy had planned the rally to express solidarity with the labour, the working class and the peasants and to protest against the mass retrenchment of civilian employees from various government departments and autonomous bodies, she said. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010502 ------------------------------------------------------------------- Government asked to solve labourers' problems: May Day observed ------------------------------------------------------------------- Bureau Report PESHAWAR, May 1: Labour organizations and trade unions observed May Day here on Tuesday by organizing rallies to pay homage to the workers of Chicago who had laid down their lives for upholding the dignity of labour. The All Pakistan Federation of Labour held a rally on Charsadda Road. Speakers highlighted the problems faced by the labour community and called for greater unity and co-ordination among various labour organizations and government employees' unions. The rally was attended by a large number of labourers, daily- wage earners, push-cart owners and rickshaw drivers, besides trade unions and workers of the All Government Employees Co-ordination Council. Speakers criticized the local police for its harsh and rude attitude towards rickshaw drivers, push-cart owners and hawkers. They called upon political parties not to politicize May Day, and said workers knew how to resist anti-labour policies. They also hailed restoration of May Day holiday. Later, the rally joined a meeting of the Local Government Employees Federation, NWFP, at the municipal corporation offices on GT Road. On this occasion, labour leaders and workers paid rich tribute to the Chicago martyrs for securing the rights of labourers. The speakers said the attendance of a large number of workers and labourers in the May Day meeting confirmed that unrest prevailed in the working class. They criticized the Municipal Corporation Peshawar (MCP) administrator for his anti-workers' policies and threatened to launch protest if the workers' grievances were not redressed. In another meeting, arranged by the United Municipal Workers Union (CBA), speakers criticized the MCP administrator's statement that legal action would be taken against the workers and union leaders who would hold any meeting on May 5. The speakers expressed concern over placing of MCP workers in the surplus pool and accommodating 286 employees and officials of the Peshawar Development Authority in the corporation. The Local Government Employees Federation also organized a meeting to commemorate May Day. The meeting observed that the policy of downsizing in government departments would render majority of employees jobless. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010502 ------------------------------------------------------------------- Usmani named deputy army chief ------------------------------------------------------------------- Correspondent ISLAMABAD, May 1: Lieutenant-General Muzaffar Hussain Usmani, Commander 5 Corps, has been designated Deputy Chief of the Army Staff. He will assume his new appointment on May 17, 2001. Lt-Gen Tariq Waseem Ghazi, serving as Command and Staff College, Quetta, will replace him as Commander, 5 Corps. According to an ISPR press release issued here on Tuesday night the chief of the army staff has also appointed Maj-Gen Malik Arif Hayat, as Commandant Command and Staff College, Quetta, and Maj-Gen Syed Ali Hamid as Director-General Defence Export Promotion Organization (DEPO) at Joint Staff Headquarters, Chaklala, Rawalpindi Lt-Gen Usmani was commissioned in 1966 in an armoured infantry battalion. After four years of regimental duties he was posted to School of Infantry and Tactics, Quetta, as instructor. In 1974, he was posted to Pakistan Military Academy, Kakul, as Platoon and Company Commander. After promotion to the rank of colonel, he commanded two armoured infantry battalions, including a battalion in Saudi Arabia. As brigadier, he commanded an infantry as well as a mechanized brigade. On promotion to the rank of Maj-Gen, he commanded as infantry division. As Lt-Gen, he commanded two corps, one in Bahawalpur and the other in Karachi, from where he has been designated deputy chief of the army staff. In addition to his command experience, he has also served on various staff appointments. He has served as director-general military training, inspector general training and evaluation, and vice-chief of general staff at GHQ, in addition to his appointments as directing staff at Command and Staff College and National Defence College. Military experts said as Deputy Chief of the Army Staff, Lt-Gen Usmani was likely to take up most of the institutional duties of General Pervez Musharraf who they said was expected in the immediate future to get more involved in the day-to-day affairs of running the country. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010501 ------------------------------------------------------------------- Karachi to have 18 towns, 178 Union Councils ------------------------------------------------------------------- Habib Khan Ghori KARACHI, April 30: Karachi has been divided into 18 towns and 178 union councils under the city government's devolution plan. Its delimitations were approved by a special cabinet meeting held here on Monday. Sindh Governor Mohammedmian Soomro presided over the meeting. After the meeting briefing journalists on the salient features of the city government, the Sindh Minister of Labour and Local Government, Dewan Muhammad Yusuf, said the draft of the delimitations would be made public by the commissioner on Wednesday, May 2, to elicit public opinion on it. Replying to questions, the minister said the entire exercise of delimitation took six months as opinions of all the stakeholders had to be sought and it was to be ensured that the new administrative units should be manageable and be able to deliver the goods. The minister said the city government would be run by a District Co-ordination Officer and a Nazim with the house comprising 255 members 178 Nazims of union councils, 59 women members, nine representatives of workers and peasants and five representatives of minorities. All the five districts, the KMC and the DMCs would be merged with the city government. However, cantonment boards would continue to exist whose future was being discussed at the proper forum. He said the government had to carry out delimitation exercise in Karachi as here the situation was complicated where the existing five districts failed to deliver services to the people. Under the devolution plan, city governments had been proposed for all the metropolitan cities. In other districts the exercise of delimitation was not needed as the boundaries of the districts, union councils and tehsils had remained intact without alterations, he said adding that delimitation had been carried out on the basis of the population according to the 1998 census report. He said in the delimitation the population of the union councils had been kept between 40,000 and 60,000, whereas in the town the largest population would be of New Karachi Town with over 684,000 of 13 union councils, and Gadap Town with over 290,000 population of eight union councils would be the lowest population. In reply to a question, the minister said the budget exercise for the year 2001-2002 was being carried out under the devolution plan and budget was being earmarked accordingly. Answering another question, he said major organizations would keep on dealing with the entire city, whereas engineering departments of the KMC, the KDA, the LDA, the MDA and the DMCs would be merged and after meeting the requirements of a master plan the remaining engineering staff would be transferred to different towns. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010430 ------------------------------------------------------------------- CNG conversion reduces petrol consumption by 18% ------------------------------------------------------------------- ISLAMABAD, April 29: Owing to conversion of a large number of vehicles to CNG system, the country is saving 220,000 tons of petrol annually, which comes to 18 per cent of the country's annual consumption of petrol, official statistics show. The statistics of the ministry of petroleum and natural resources show that currently 160 CNG stations are working throughout the country, and the country is saving $50 million foreign exchange through reduced consumption of petrol. The total number of vehicles, which are using CNG fuel around the globe, is estimated to be more than one million. However, about 150,000 vehicles of various types in Rawalpindi, Islamabad, Karachi, Lahore, Peshawar, Attock, Abbottabad, Havelian, Gujranwala, Hassanabdal and Jhelum, are running on CNG fuel. This figure shows that nearly 15pc of the total vehicles are using CNG. The statistics of the ministry show that another 150 CNG stations are being set up in the country, while currently 55 stations are working in Rawalpindi, 25 in Lahore and 10 in Islamabad. "A motorcar that uses CNG fuel consumes Rs1.25 per kilometre and the use of fuel does not affect the engine of the vehicle. However, the pick up of the vehicle is slightly affected and that too can be controlled through better tuning," a motor mechanic remarked. According to sources, nearly 500 million tons of diesel oil is being consumed in the country, which is polluting the environment. The trend of converting vehicles from diesel to CNG is not becoming popular because of difference in the prices of the two. "The government is pursuing the policy of converting a large number of vehicles to CNG fuel but the high prices of CNG kits are also proving to be a hurdle. However, the government has abolished the excise duty on gas kits for conversion of vehicles to CNG in large numbers," the sources said.-NNI DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010430 ------------------------------------------------------------------- Pakistan, Iran to sign pact to avoid double taxation ------------------------------------------------------------------- Reporter ISLAMABAD, April 29: Pakistan and Iran will sign an accord next month to avoid double taxation. A committee was constituted last week to chalk out ways and means for the prevention of cross-border smuggling between the two countries. The income tax officials of both countries will meet here in Islamabad as well as in Tehran next month to finalize the agreement. The committee will make a list of the smuggled goods and also develop a mechanism how to control it. It will also discuss the goods and services to be traded between the two countries on which the avoidance of double taxation is to be agreed.
BUSINESS & ECONOMY 20010505 ------------------------------------------------------------------- IMF sees weak economic prospects ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, May 4: Lower growth and shortfalls in external financing have weakened macroeconomic prospects for 2000-01, says the IMF Country Report on Pakistan. It said the real value added in the agricultural sector is projected to increase by only 0.3 per cent (compared with the 2.6 per cent projected in September) as the drought conditions have intensified. Consequently, growth as measured by the real GDP at factor cost is now forecast at 3.8 per cent, compared with 4.5 per cent under the original programme, the report compiled in late April this year said. Inflation, as measured by the annual average change in the Consumer Price Index (CPI), is now expected at five per cent, one per cent less than the original projections, even after taking into account anticipated pressures on food prices, programmed increase in electricity and gas tariff rates, and some additional pass-though effects. With the envisaged policy mix, the current account deficit for 2000-01 is still estimated at 1.6 per cent of GDP. However, with the expected shortfall in external financing, the reserves target for end-June was reduced by about $100 million to $1.6 billion (equivalent to six weeks of imports). "The fiscal policy stance is remain broadly unchanged, but achieving the revised reserves target will require the tightening of monetary policy even with further flexibility of the exchange rate." "Risks of instability in key monetary policy parameters remain high," the report asserted. It said the authorities recognize that in view of the risks of further unexpected shift in the cash to deposit ratio, the money multiplier and market sentiments, vigilance is needed to ensure that the monetary policy stance remains sufficiently right to achieve the reserves target and to keep inflation under control. They are also committed to relying on indirect instruments of monetary policy to achieve the monetary targets and to refrain from using the weekly and daily CRRs as a day-to-day instrument to affect monetary conditions. The authorities agreed that the fiscal policy stance should remain essentially unchanged. However, reflecting development in the first seven months of 2000-01, some revisions to targets for revenue and expenditure levels and composition were undertaken. The March and June 2001 targets for the SBP Net Domestic Assets (NDA) were somewhat eased, because demand for currency is unlikely to revert in the near future to the levels that were programmed originally. Nevertheless, compared with the underlying monetary policy stance during October 2000 to February 2001,monetary policy will need to be tightened in the next few months, notably in support of the revised foreign exchange reserves targets. The targeted build up in reserves by end-June reflects largely in the expected disbursements from international financial institutions (IFIs) in the second half of 2000-01, amounting to about $875 million. "Nevertheless, a careful co-ordination of foreign exchange interventions with monetary policy would essential to prevent unsettled conditions in the foreign exchange market. Indeed, with the recent increase in interest rate, official reserves were built up to $660 million by mid-March." DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- Law to streamline hostile take-overs of companies soon ------------------------------------------------------------------- Khaleeq Kiani ISLAMABAD, May 3: The government has decided to streamline hostile take overs of listed companies and acquisition of their substantial shares to provide a level playing field to general investors. "No person shall, directly or indirectly, acquire (i) voting shares, which (taken together with voting shares, if any, held by such person) would entitle such person to more than 15 per cent voting shares in a listed company, or (ii) control of a listed company, unless such person makes a public announcement of offer to acquire voting shares or control of such company", says section 5 of a law that the federal cabinet will approve in its forthcoming meeting. The "Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance 2001" drastically changes the process of acquisition of control and substantial shares of the listed companies, official sources told Dawn. Under section 4 of the ordinance, any acquirer who acquires voting shares which would entitle him to more than 10 per cent voting shares in a listed company, shall disclose the aggregate of his shareholding to that company and the stock exchange. This disclosure shall be made within two working days of the receipt of intimation of allotment of voting shares of the acquisition of voting shares as the case may be. However, the acquirer may acquire additional voting shares during 12-month time after acquisition of voting shares without making disclosure in case the total acquisition does not exceed an aggregate of 15 per cent. Under section 6 of the law, no acquirer who has acquired more than 15 per cent but less than 51 per cent of the voting shares or control of a listed company shall acquire additional voting shares or control unless such acquirer makes a public announcement of offer. Section 7 of the ordinance says that the acquirer shall appoint a bank or financial institution or a member of a stock exchange as a manager to the offer before the public announcement who would be deemed as agent of the acquirer. Before acquisition of voting shares beyond the specified limit the acquirer shall, after giving notice to the Securities and Exchange Commission of Pakistan (SECP), make a public announcement of such an intention forthwith. The acquirer shall ensure that offer letter is sent to all the shareholders of the target company whose names appear on the register of members provided that where the public announcement is made pursuant to an agreement to acquire voting shares or control of the target company, the offer letter shall be sent to the shareholders other than the parties to the agreement. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010503 ------------------------------------------------------------------- Central Board of Revenue asks cos to pay dividend in 7 months ------------------------------------------------------------------- Reporter ISLAMABAD, May 2: The Central Board of Revenue (CBR) has asked all the public limited companies to distribute cash dividend within seven months of the end of the running income tax year. This directive did not cover scheduled banks and modaraba. "The public limited companies have been directed to distribute their dividend as provided in Section 12(9-A) of the Income Tax Ordinance, 1979, whereby such companies are obliged to distribute cash dividend within seven months of the end of the current income tax year," said Wakeel Ahmad Khan, Member Tax Policy of the CBR in a statement issued on Wednesday. Khan, who is also the spokesman for the CBR, said the companies while distributing such cash dividend should ensure that their reserves after distribution of cash dividend did not exceed 50 per cent of their paid up capital. "In case the reserves after distribution of cash dividend exceed 50 per cent of the paid up capital, the excess reserves would be deemed to be in the income of the said companies, during the last year and taxed accordingly." He said the companies offering cash dividend were also required under Section 50(6A) read with GG of Part 1 of the first schedule to the income tax ordinance 1979, to withhold tax from such distributed cash dividend at the rate of 10 per cent. Failure to do so will render the said companies liable under Section 52 to additional tax, in addition to payment of 10 per cent tax required to be withheld, he added. The spokesman said the CBR had reminded such companies to discharge their statutory responsibilities of distribution of cash dividend and tax withholding thereon. The tax withheld on distribution of such dividend should be paid within prescribed time to the deputy commissioner income tax concerned to avoid further legal complication, he warned. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010502 ------------------------------------------------------------------- Shaukat optimistic of World Bank facility: Poverty reduction ------------------------------------------------------------------- WASHINGTON, May 1: An IMF mission will leave for Pakistan on May 9 to review the performance of the economy in the quarter ended March, Finance Minister Shaukat Aziz told a press conference here on Monday. He said Pakistan had met all IMF criteria except one. Revenue collection, projected at Rs36 billion, had managed to reach Rs32.87 billion. He was confident that given the achievements made in the areas which the International Monetary Fund monitored under the Standby Agreement, the mission would take a positive view of the situation. He said quarter after quarter Pakistan had succeeded in building up its credibility and providing evidence of its commitment to economic reforms. The mission will be led by IMF assistant director Klausse Enders. Mr Aziz said if the review was successful, Pakistan would get the next IMF tranche of $128 million. He said it would be the first time that three tranches would have been received under one programme. He told newsmen that a $700 million package announced by the World Bank president on Saturday would be put up for approval at a meeting of the Bank's board on June 14. The finance minister explained that $350 million was a Structural Adjustment Credit which would be front loaded, or given lump sum, after the World Bank board approved it, something it was likely to do as Pakistan had taken all necessary and required steps to qualify for the credit. The other half of the $700 package was intended for reforms in the banking sector. This, too, was expected to sail through the board, he said. Mr Aziz said the Bank was also considering another $250 million for drought victims. He said his meeting with World Bank president James Wolfensohn on Saturday had been fruitful with the Bank chief expressing support for Pakistan's economic reform agenda. He added that the Mr Wolfensohn had assured him that the World Bank would help Pakistan correct its economic imbalances. The finance minister said that he foresaw no major obstacles to Pakistan qualifying for the World Bank's Poverty Reduction and Growth Facility. He told newsmen that if Pakistan stuck to its reform agenda, it was certain to receive a high degree of support and understanding from the twin world financial institutions whose annual spring meetings he came here to attend at the head of a delegation. The finance minister said it was clear that the World Bank's attitude towards Pakistan had undergone a positive change from Islamabad's point of view. Mr Aziz observed that there was respect for the seriousness with which Pakistan and its financial and economic managers had approached the difficult and not always popular task of putting the country's economic house in order. He said in the months to come intense negotiations with the Bank and the IMF would take place.- APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010501 ------------------------------------------------------------------- Minimum investment condition waived: Corporate farming ------------------------------------------------------------------- Ihtasham ul Haque ISLAMABAD, April 30: The government has removed the condition of compulsory foreign investment of $300,000 for establishing any agriculture-related industry in Pakistan. "The new policy, being announced shortly for corporate farming, will allow the foreign investors to invest any amount of money as the corporate agricultural farming (CAF) has now been declared an industry," said Board of Investment (BoI) chairman Wasim Haqqie. Talking to Dawn on Monday, he said the condition of compulsory $300,000 investment by foreign investors did not contribute in attracting new investment in the country. He pointed out that the cabinet committee on investment would meet soon to formally approve various recommendations to promote corporate farming. Under the present investment policy of BoI, he said, there was no upper ceiling on land holding for corporate agriculture companies. It was recommended, however, that a legal cover should be provided to avoid any complications in future. The ministry of food and agriculture was of the view that size of the proposed corporate farm should be left to be determined by the prospective investor and that this should be done by amending Section 7 of MLR 115 and Section 8 of the MLR 64. Some of the issues related to Central Board of Revenue (CBR), State Bank fo Pakistan, BoI, finance division and provincial governments were still to be resolved due to which policy package for CAF had not so far been announced by the government. Nonetheless, he said, Chief Executive Gen Pervez Musharraf, in principle, accepted most of the recommendations. He pointed out that a sub-committee headed by secretary general finance Moeen Afzal had submitted its report with following recommendations: The existing provisions of provincial agricultural income tax (AIT) laws, which provide for the proportionate liability of corporate shareholders should be maintained; dividends from the corporate agricultural farms (for non-industrial activities) should not be subjected to tax on such dividends; farm income should continue to get more favourable treatment than non- farm corporate incomes because of the risk/uncertainty associated with farming; and the existing definitions of pure farming activity, which differentiate it from processing/industrial activity, should continue to be maintained. As in the case of export processing zones, labour laws of the land will not be presently applicable to corporate agriculture companies. Due to special circumstances of the agriculture sector, however, appropriate laws would be developed for this sector within five years, he added. Responding to a question, Haqqie said State Bank of Pakistan would fix the target for lending support from the financial institutions in order to offer loans for corporate farming. Some proportion would be earmarked for corporate agriculture companies from the lending programme of all financial institutions. But target would be given by the central bank, he said. To a question, he said Pakistan needed to increase its annual $120 million exports of fruits and vegetables and about $180 million fisheries. "There is an expectation of $1 billion export, once the corporate farming starts in Pakistan on scientific lines," the BoI chairman said. Marketing and agricultural produce and insufficient storage facilities were causing problems to increase the exports of fruit and vegetables, he added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010501 ------------------------------------------------------------------- Tax relief for banks, cos being worked out: Budget 2001-2002 ------------------------------------------------------------------- Sabihuddin Ghausi KARACHI, April 30: A four-year taxation relief package is being worked out for banks and public and private companies to be incorporated in the next fiscal year's budget. Well-placed sources disclose that the next year budget is expected to bring down corporate tax rate on banks to 56 per cent from the existing 58 per cent. The proposal is to bring down two percentage points reduction in tax rate every year, leading down to 54 per cent in 2002-2003, 52 per cent in 2003-2004, and finally to 50 per cent in 2004-2005. Also under consideration of the budget makers is a proposal to bring down income tax rate on private companies to 43 per cent in 2001-2002 and after one percentage point reduction every year eventually to 40 per cent in 2004-2005. All public companies listed on stock exchange are expected to be taxed at 33 per cent in the next year's budget, which is likely to be reduced by one percentage point every year to 30 per cent by 2004-2005. At present, the tax rate on banking is 58 per cent on which roughly Rs20 billion is being collected every year. The public companies are being taxed at 34.65 per cent and contribute about Rs15 billion a year, while the private companies pay roughly Rs14 billion at effective rate of 45.1 per cent. For last many years, several trade bodies including the most vocal and assertive Management Association of Pakistan (MAP) and the tax bar associations had been repeatedly pleading for a drastic cut in corporate tax rates on companies and on banks. Instead of going for a drastic cut in tax rates on the corporate taxes, sources said that the government is expected to opt for a year-wise phased programme as one source said, "fiscal deficit is on top of every priority and this government cannot take chance to take any step which may bring down quantum of revenue." A powerful section of tax collectors in CBR justify the high taxation rate on banking. A source close to CBR say that tax collector perceive a restricted competition in the banking sector. And a major factor is the spread between lending and deposit rates, which is so high in Pakistan that it cannot be matched by any banks in the neighbouring countries. Bankers, however, point out that the total effective rate on banking in Pakistan is 85 per cent taking into account the 58 per cent corporate tax, tax on the unrealised income of bad loans, administration of advance tax and double taxation. "If the current situation continues, private and foreign banks may well restrict their activities in Pakistan, while some will pull out altogether", a recent document of the Privatization Commission says. This document is based on the findings of a World Bank mission that visited Pakistan in October last and had detailed meetings with the bankers to offer privatization commission suggestions for disinvestment of government banks. The Privatization Commission now wants an up front taxation relief policy on the banks before offering public sector for management control to the strategic investors. Mounting taxation liabilities is forcing both the United Bank and the Habib Bank to seek government for financial assistance in billion of rupees. The Privatization Commission document reveals that five largest commercial banks NBP, HBL, UBL, ABL and MCB are disputing Rs45.3 billion tax liabilities. Payment of these taxes can wipe out the equity leaving no option to the government but to inject funds from tax payers money into UBL and HBL. The CBR also wants to recover a total of Rs16.6 billion that include Rs11.8 billion from HBL only, on account of tax on the unrealised interest amount of bad loans since 1990-91. Apparently, the pleading of the trade bodies to have a uniform tax rate for all the companies have also not found a favourable response from the CBR. "A distinction in tax rate of private and public companies is also necessary as it induces private companies to become broad- based, professionally managed and better document entities", is one of the convincing arguments being offered to tax public companies at relatively less rate. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010430 ------------------------------------------------------------------- Pakistan assured of $700 million World Bank credit ------------------------------------------------------------------- Tahir Mirza WASHINGTON, April 29: Pakistan has won assurance of a $700 million credit from the World Bank for the current year that will be additional to drought relief pledged by the bank. This was revealed after a meeting between Federal Finance Minister Shaukat Aziz with World Bank President James Wolfensohn on Saturday on the sidelines of the IMF/World Bank annual spring meetings here in Washington. Mr Aziz told reporters on Saturday evening he had found the World Bank chief receptive to the progress made by the military regime and said that his meeting had gone "very well". Mr Wolfensohn appeared understanding of Pakistan's problems, he added. The finance minister has held meetings with several World Bank and IMF officials, as well as representatives of the Bush administration, and seems on the whole well pleased with the outcome. He said he had found the IMF chief, Horst Kohler, also to be responsive to Pakistan's needs. On what can be described as the political side, Mr Aziz met Richard Haass of the State Department's Policy Planning Bureau and discussed South Asian affairs. He had earlier met Treasury Secretary Paul O'Neill and the putative assistant secretary of state for South Asia, Ms Christina Rocca, who has been named for the post by the Bush administration but not yet formally nominated. PROTESTS: On Sunday, the IMF headquarters in downtown DC where the spring meetings are being held was cordoned off by police in view of anticipated anti-WTO demonstrations. There were barricades along all entry points for the IMF building and only those with passes were let through. Police cars patrolled the area. However, till 10pm( Pakistan time) no protests had materialized. It was believed that environment and globalization protesters had exhauted their engeries during the vociferous and sometimes violent demonstrations held by them on the occasion of the Summit of the Americas in Quebec earlier this month. At last year's IMF/World Bank gathering, thousands of protesters had clogged Washington streets and police had made some 1,300 arrests. DEBT: Pakistan's total external debt had risen from $20.66 billion in 1990 to $34.42 billion in 1999, according to the World Development Indicators issued by the World Bank here on Sunday on the occasion of the IMF/WB spring meetings. Defence expenditure as a percentage of the Gross National Income (GNI) had come down to 5.7 per cent in 1997 from 7.4 per cent in 1992 and as a percentage of central government expenditure had declined from 27.9 per cent to 24.2 per cent during the same period. But it was still higher than India's, which spent 14.3 per cent of its government expenditure on the military in 1997. Efforts have been made by Pakistan in the past two years to reduce the defence budget along with reductions in overall government expenditure, and it is officially claimed that as a percentage of the GDP, it is currently at 4.5 per cent (including a large pension component) as compared to 7.5 per cent eight years ago. Public expenditure on health in Pakistan in 1998 was an abysmal 0.9 per cent of GDP and on education 2.7 per cent of GNI or (GNP). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010430 ------------------------------------------------------------------- Privatization plan fails to attract investors ------------------------------------------------------------------- Jawaid Bokhari KARACHI, April 29: The privatization programme, unveiled in August last year, has failed to attract investors and its success has remained confined to two small transactions. And the latest schedule has assigned a ten-month period (September- June 2002) as the expected peak for major privatization. Officials hope that the investment environment would improve once the IMF approves $2-3 billion Poverty Reduction and Growth Facility (PRGF) by September this year. If the facility is approved, it would help improve the balance of payments position, ease debt burden and improve forex reserves. The Privatization Commission (PC) anticipated sale of 49 units for $4 billion over two years. The short-term plan envisaged privatization of nine units by December 2000. Of these, only two deals have materialized the sale of LPG unit to Caltex and part of the government stakes in MCB to bank employees, indicating that business confidence is at low ebb. Financial analysts at a brokerage house say that "the slow progress can be largely attributed to depressed investor sentiment over the last few months; given this performance, substantial improvement in the next couple of years becomes questionable." They add: several state-owned enterprizes may require internal restructuring before being offered for sale, which means more delay in the final transaction. For example, PIA is in a mess. The airline may need substantial restructuring to make the sell-off feasible. The sales rescheduled are as follows: For UBL, the date for receiving EOIs for 26 per cent government stake has been set for June 2001. The federal minister for privatization says the market appetite for United Bank has increased and the bank's restructuring will be left to the strategic investor. Industry sources said self-restructuring would suit local buyers who are already managing banks in Pakistan. This opinion is shared, among others, by Mr Amar Zafar Khan, President UBL. Mansha group is interested in UBL. The market perception is that MCB needs foreign branches for expanding its overseas operations. If Mansha gets UBL, the bank may be so restructured as to reduce unnecessary and superfluous competition in the domestic market between the two banks managed by the same group. Bank branches could be re-located or closed down under an overall strategic plan. It could turn out an ideal deal for the prospective buyer. The transaction, officials hope, may be completed by the fag end of the current calender year. Similarly, financial adviser to PSO was appointed in March this year, with a deadline to put the transaction in the market in December 2001. Given a quite conducive global environment and the positive experience of the multinational oil companies in oil sector in Pakistan, financial analysts feel that the PSO could be put on a fast-track privatization. The market may have an appetite for Pakistan State Oil Company. Giants like Shell and Caltex are making investments and are expanding. Total and Mobiloil which have entered the domestic market recently, may make their presence felt soon. With de-regulation of the oil and gas sector being an on-going process enlarging the scope for improving profit margins, investment is flowing into oil and gas exploration. Financial analysts say that PSO needs restructuring to shed some of its fat for which there is plenty of room. Inefficiencies have to be rooted out. KESC and Wapda owe PSO Rs15 billion. The issue could be taken into account and the amount needs to be adjusted. The PSO has the loin's share in import and distribution of oil and a large network of storage facilities. It's sale should not pose much of a difficulty. In the second half of this month, plans for sell-off of KESC, PTCL and 10 per cent government stake in the National Bank of Pakistan have been unfolded. Price Water house has been appointed adviser for privatization of KESC by June 2002. EOI has been invited for strategic sale of 26 per cent stakes in PTCL by June 30. Bidding is anticipated by the end of September or October. The management is intended to be handed over by June 2002. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010429 ------------------------------------------------------------------- Allocation of 5% GDP to farm sector: Conference proposes ------------------------------------------------------------------- Faraz Hashmi ISLAMABAD, April 28: The first agri-business conference has called for allocation of 5 per cent of GDP in the agriculture sector of the country. The concluding session of the conference presided over by the Chief Executive Gen, Pervez Musharraf presented a set of recommendation formulated deliberation by 150 participants over the last three days. The recommendation read out by Commerce Minister Razzak Dawood asked the government that the major thrust of the next budget should be on the agriculture sector. The conference recommended the introduction of Biodiversity Law and Seed Breeders Act, so that Pakistan can take advantage of biotechnology advancements in the production of seeds. Level playing field should be provided to the private sector to compete with the public sector in the production of hybrid seed and a sustained public awareness campaign should be launched for popularizing the use of quality seed, the conference recommended. On the issue of improving storage facilities in the country, it said the existing storage capacity with the government should be used for strategic reserves and for additional capacity, policy be devised to promote private sector investments. While the agriculture produce are stored, there should be some value addition and this will help in getting right rent for storage and thus provide incentives for investment, it added. The conference further recommended that the wheat subsidies should be more transparent and targeted to the low income group and the post harvest crop handling and storage facilities should be operated by the farmers supported by the government through infrastructure development at least at district level An incentive package for private sector to invest in cold chain facilities should be finalized by June 30, 2001, it said. It suggested that Pakistan Railway should be directed to undertake refrigerated transportation for perishables and Private sector may be encouraged to establish storage/grading facilities at the lifting points of agricultural produce. The conference stressed that Agricultural Export Processing zones should be created where combined grading, packing, quarantine & fumigation facilities may be available. It recommended that there should be national standardization policy to improve the quality of the agriculture implements. The loans given for the purchase of tractors and agricultural implements by ADBP should be tied to the sources of procurement, it added. The conference also suggested that a task force under ministry of commerce, ministry of agriculture should be established to frame policy for leasing/rental business of agricultural machinery/implements by June 30, 2001. It asked to allow imports of tractors of below 30 & above 100 HP, which are not manufactured locally at concessionary duty of 10 per cent.Back to the top
EDITORIALS & FEATURES 20010429 ------------------------------------------------------------------- Our politicians ------------------------------------------------------------------- Ardeshir Cowasjee IF we were to completely disregard, and were able to write off, the harm done to this nation by our corrupt, spineless, avaricious politicians, devoid of conviction, we could scathingly dismiss them as being but clumsy clowns. On April 22, a frightening-looking lot assembled at a seminar in Lahore to thrash out the problem of 'How to protect the ideological frontiers of the country'. Amongst the speakers were Evergreen Hookah-Master Nawabzada Nasrullah Khan, Meraj Khalid, Mohammad Tariq, Cambridge Chaudhry Aitzaz Ahsan, Jamaat-i-Islami Naib Amir Liaquat Baloch, Qayyum Nizami, Khwaja Saad Rafiq, Engineer Sahibzada Ibtisam Elahi Zaheer, son of Allama Ehsan Elahi Zaheer, Professor Sajjid Mir, JUI-F leader Maulana Amjad Khan, Dr Miskeen Hijazi, 'Faraz Malik of the Cambridge University and Hafiz Mohtassim Elahi Zaheer. Whilst discussing the problematic subject of the country's ideological frontiers did they call to mind that the basic ideology-sans-frontiers of our country yet remains to be defined? On that same propitious day, Muslim Leaguers, who refer to themselves as 'a like-minded group,' grouped in Islamabad. This is an emerging party to be known as PML(L). At a press conference they announced the nomination (not election) of a 40-member central executive committee of the new-born party. Flip-flop Mian Azhar's was appointed president of the party, Gohar Ayub Khan secretary- general, Colonel Ghulam Sarwar Cheema additional secretary general, and my friend Chandi Abida Hussain information secretary, Thirteen vice presidents were selected, amongst whom are Ejazul Haq, Khurshid Mahmood Kasuri, and General Majid Malik, as were 13 joint secretaries. Present among the 'group' was Humayun Akhtar, an extremely rich son of a rich former general. This motley group coincidentally agreed with the stray adherents of brazen Benazir and certified that General Pervez Musharraf would make a good president. Mian Azhar, flanked by two former speakers of the National Assembly, Gohar Ayub Khan and Fakhr Imam, reportedly confessed to the pressmen: If the 8th Amendment had not been repealed, we would not have been facing the military rule today..... there should be a system of check and balance among the state institutions and the offices of the president and the prime minister. This was a grouping of true-blue turncoats, a get-together of those who had shot down Constitutional Article 58(2)(b), who had passed Nawaz Sharif's 13th Constitutional Amendment. They now are calling for 3the restoration of presidential powers to dissolve assemblies and the granting of a constitutional role to the army by setting up a national security council. 'We have to give a fresh look and bring in a new political formulation,' said the normally silenced-by-his-wife's-eloquence Fakhr Imam, who wisely now admits that experience has amply exhibited that the system (whichever system it be) had not worked without checks and balances. For the new-born it is necessary to elaborate on our mangled unintelligible Constitution and its amendments. The 1973 Constitution was passed by consensus by the many members who believed that as it guaranteed fundamental rights it was better than no Constitution at all and certainly better than martial law. None dissented. The few who were not happy with it abstained. Before the ink was dry, within four hours of its promulgation, the people of Pakistan were deprived of their constitutionally guaranteed fundamental rights through a gazette notification issued by the maker of the Constitution, Zulfikar Ali Bhutto. Fundamental rights having been rendered non-justiciable, he then had all his political opponents arrested. They were held in various jails until released by Zia-ul-Haq four years later. Not satisfied with the notification, Bhutto had his Constitution amended seven times between its promulgation on August 14, 1973 and July 5, 1977, the date of his fall from grace. An amendment of a Constitution is an extraordinary measure necessitating a great deal of deliberation on the part of the ruling party, consultation with the Opposition, and a careful objective study of public opinion on the subject. Its passage through the legislature must be deliberately regulated to ensure full discussion, to provide ample opportunity for criticism. According to the rules of procedure which govern parliamentary procedure under the 1973 Constitution, a bill, other than a finance bill, upon its introduction in the House must be referred to the relevant standing committee, unless the requirements of the rules have been dispensed with by the House through a motion of the relevant member. The standing committee is asked to present its report within 30 days. When this is received, copies of the bill (and any changes recommended by the committee) are to be supplied to each member within seven days. Two clear days must then elapse before the bill can be sent down for motion. These rules were suspended by Bhutto for the passage of the Second, Fourth, Fifth, Sixth and Seventh Amendment bills. The First Amendment bill was introduced in the House on April 15, 1974. The standing committee presented its report the next day and within a week it was passed leaving no time for debate. The Third Amendment bill was introduced on February 11, 1975, the required report was presented and the bill passed the next day. Then came the Zia-Junejo era. The Eighth Amendment bill was passed in 1985. The rules were not suspended. Debates continued for around six months before it was passed. The Ninth Amendment bill (concerning Islamic injunctions) was introduced but never passed. The Tenth Amendment Bill, a bread-and-butter bill (amending Articles 54 and 61) was passed after due deliberation. The Eleventh Amendment bill (women's seats) was introduced in Benazir Bhutto's first round and was not passed. The Twelfth Amendment bill (special courts) was introduced by Nawaz Sharif in his first round, the rules were suspended, it was rushed through with little discussion and passed. The Thirteenth Amendment bill was introduced by Nawaz in his second round into both Assembly and Senate on the same day, four years ago, on April 1 1997, and it was passed that day without any discussion, without one member even rising to ask why the rules were suspended, or to suggest that there be a discussion. Government and opposition unanimously approved its passage. Not a dog barked. The only occasions in the past where there has been complete unanimity between the treasury and the opposition have been those when bills have been introduced concerning the salaries, perks and privileges of the honourable members. The motivation on those occasions was pure greed. The motivation in 1997 was also greed - greed for unrestrained power. This is what the Thirteenth Amendment is all about: Article 58 (2): Notwithstanding anything contained in clause 2 of Article 48, the President may also dissolve the National Assembly in his discretion where, in his opinion (a) a vote of no-confidence having been passed against the prime minister, no other member of the National Assembly is likely to command the confidence of the majority of the members of the National Assembly in accordance with the provisions of the Constitution, as ascertained in a session of the National Assembly summoned for the purpose; or (b) a situation has arisen in which the government of the Federation cannot be carried on in accordance with the provisions of the Constitution and an appeal to the electorate is necessary. (b) was deleted by the 13th Amendment Article 101 (1): There shall be a governor for each province who shall be appointed by the president after consultation with the prime minister. After the 13th Amendment this read: There shall be a governor for each province who shall be appointed by the president on the advice of the prime minister. Article 112 (2): The governor may also dissolve the provincial assembly in his discretion, but subject to the previous approval of the president, where in his opinion: (a) a vote of no-confidence having been passed against the chief minister, no other member of the Provincial Assembly is likely to command the confidence of the majority of the members of the Provincial Assembly in accordance with the provisions of the Constitution, as ascertained in a session of the Provincial Assembly summoned for the purpose; or (b) a situation has arisen in which the government of the province cannot be carried on in accordance with the provisions of the Constitution and an appeal to the electorate is necessary. (b) was deleted by the 13th amendment Article 243 (2): The president shall, subject to law, have power (a) to raise and maintain the military, naval and air forces of Pakistan; and the reserves of such forces; (b) to grant commissions in such forces; and (c) to appoint in his discretion the Chairman, Joint Chiefs of Staff Committee, the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff, and determine their salaries and allowances. In (c) the words 'in his discretion' were deleted by the 13th amendment. Now, our suspended parliamentarians are willing to agree to anything which will catapult them back into their profession, to anything which will restore to them power and pelf. Many would conceivably be willing to sell themselves if it would ensure their return to power. Are the entire lot not deserving of disqualification for life? DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- The Burma Road ------------------------------------------------------------------- Ayaz Amir WHAT does a social experimenter seek among other things? A confirmation of his theories or prejudices. With another experiment underway upon the body politic of Pakistan, what more fitting place for General Musharraf to visit than the enigmatic Republic of Myanmar? For Myanmar epitomises to perfection the political theories being bandied about (albeit with no small amount of confusion) in Pakistan today. It is a country cleansed of politics and subject to the unchallenged supremacy of the military. Aung San Suu Kyi may be the darling of the western media, nd an icon of sorts to democrats the world over (certainly a towering figure compared to the democratic champions produced by us). But what does her star billing matter to Myanmar's dour generals as long as she remains safely behind lock and key? Dour I say advisedly because it would be hard to imagine anything more set and impassive than the features of Senior General Than Shwe. Even when greeting Musharraf scarcely the ghost of a smile flickered across his face. We want to make a functioning thing of the National Security Council. In Myanmar the ruling junta styles itself as the State Peace and Development Council. Our constitutional experts in the service of the military (did I hear anyone say Mr Sharifuddin Pirzada?) could mull over this one. It sounds delicious if also a trifle more sinister. For what it truly stands for we could ask Suu Kyi. By now aficionados of the Pakistani scene should have a fair idea of General Musharraf's foreign preferences. His liking for Turkey is no secret, not so much perhaps for Kemalist secularism as for the power exercised by its generals as the final arbiters of Turkish democracy. Since Zia's time this has been the dream of the Pakistan army high command: to have its right of political intervention enshrined in the constitution. This accounts for Turkey's magnetic attraction. Turkish generals ride into the political arena as guardians of Ataturk's ideals. Pakistani generals embarking upon a similar mission possess no similar high-sounding legitimacy. So they cobble together whatever justifications they can--laboured excuses supported neither by the country's past nor by the beliefs of its founding fathers. This accounts for the deep sense of insecurity of Pakistan's periodic saviours. Another country in danger of becoming a role model for Pakistan is Egypt with which, as all the signs suggest, Pakistan's ties have become warmer under Musharraf. Does its attraction lie in the example provided by Egyptian democracy in which the president reigns supreme and elected institutions are little better than rubber-stamp bodies? Or in Hosni Mubarak's longevity, he being around since Sadat's assassination in 1981? Now streaking across the popularity charts comes Myanmar whose political landscape has its obvious pulls for the visionaries of the Musharraf government: a land where politics has been all but snuffed out, Suu Kyi's periodic outbursts of defiance notwithstanding. Just a day before embarking on his Myanmar trip Musharraf had this to say of Pakistan's politicians, "As they say in cricket, they have played their innings they have played useless innings, getting out at zero. They should stay at home" a sentiment with which Senior General Than Shwe would wholeheartedly agree. But there is one salient difference with the Burmese model over which Pakistan's generals could usefully ponder. The Myanmar army is not embroiled in any foreign adventures. It has no extra- territorial ambitions. It is not into the business of exporting its ideology. All its energies are concentrated on its first priority, keeping an iron grip on the country. This economy of purpose accounts for the success of the Burmese model. Myanmar's generals are not interested in the IMF. They are not driven by the chimera of matching any other country, as we are by the need to counter if not match Indian capability in diverse fields. Their dictatorship is honed to a single purpose, at which it has proved remarkably successful. I mentioned repression in relation to politics because otherwise, in relation to the nitty-gritty of everyday life, I am convinced Myanmar is a far more relaxed place than Pakistan. Even the sheikhdoms of the Gulf are more relaxed than us. It is just our luck to be a nation which is politically ebullient (there shouldn't be any doubts on this score) and, at the same time, socially retarded, which of course is no fault of the military government's. In fact with Musharraf's coming many things have eased up. But this is another story. For our present purposes suffice it to say that there is not much to choose between political or social repression because both can end up stunting a nation's growth. Anyhow, I digress. I was talking of the Myanmar junta's obsession with internal control, the fact that single mindedness of purpose makes its grip on power unshakeable. Indeed as a rule wherever dictatorships have sacrificed unity of aim to embark upon foreign adventures they have come to grief. The Greek invasion of Cyprus in the sixties led to the downfall of the Greek colonels. The seizure of the Falkland Islands and the resulting war with Britain drove the Argentinian generals (the Galtieri regime) from power. Saddam's example is the exception which proves the rule. His dictatorship was secure and prosperous. He put everything on the line by invading Kuwait. To the chagrin of the West he survives but as much diminished figure. Our own history is also instructive in this regard. The death-knell of the Ayub regime was sounded by the ill-conceived adventure of the 1965 war. From the debilitating effects of that conflict the regime could not recover. Yahya was the victim of another war. But we refuse to learn from the past and continue to be pulled in opposite directions, our energies fixed on no single aim but scattered in different directions: sustaining the Taliban, a thankless task doing no good to us; fanning the flames of jihad in Kashmir, a policy which we have yet to think through clearly, balancing nuclear capability with our unbreakable begging-bowl; and, simultaneously, trashing one political system and on its wreckage trying to raise the ramparts of a new one. For any army this would be a crippling diffusion of energy. We may count our blessings in that Pakistan is not Myanmar. Long may it remain this way (although I do pray at the same time that we somehow become a less stuck-up country in social terms). But behind the smiles and good intentions lurk serious dangers. The body language of the Musharraf government suggests long-term plans: the invention of a model wherein all the shots are called by the president, much as in Egypt, and where the president is the consensual choice of the national security establishment, again as in Egypt. Elections, assemblies and a noisy press would be the window-dressings to this structure. About the most useless thing in such a situation is verbal protest and empty analysis. Words matter when they have some relation to action or political activity. In present-day Pakistan there is a void where the political arena should be. Words thus have lost their meaning. Also much of their sting which is why Musharraf can just as easily shake off verbal criticism as he can pour contempt upon the political class. With no meeting point between the army and public opinion the outlook is thus dismal. The political parties are ineffectual and waiting for handouts from the government. Public opinion is listless, neither willing to be swayed by the political parties nor putting much faith in the government's revolutionary capabilities. The government congratulates itself on minor improvements in the law and order situation or minor blips on the economic radar screen, forgetting that it is the larger picture it should be worried about. The larger picture shows it over-extended externally, a victim of too many cross-cutting ambitions, and at home embroiled on too many fronts and getting ready to play a long innings. The national security state with its unvarying routine of power may be good for Myanmar and Egypt with their unidimensional, or at best two-dimensional, characteristics. It is no answer to the diversity of the Pakistani scene. Or the colourful turbulence of its people. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010505 ------------------------------------------------------------------- Never a dull moment ------------------------------------------------------------------- Irfan Husain THE ancient Chinese, attached as they were to the status quo, had a curse unique to their culture: "May you live in exciting times!" We in Pakistan seem to have called this malediction on our heads almost from the inception of our state. Hardly a day passes without some fresh turmoil and confusion. Indeed, our leaders seem to possess a natural talent to conjure up crises out of thin air. In earlier days, brief periods of surface calm prevailed when the army was in power. But now, even our current crop of generals have succumbed to the national habit of creating a mountain out of a molehill. Take the recent crackdown to prevent the May Day rally planned by the Alliance for the Restoration of Democracy (ARD) as an example. For a week before the event, the police had been arresting opposition leaders and workers by the hundreds, creating an impression of a grave national emergency. Foreign media across the world have been reporting these arrests, making people abroad think we are in the midst of a major political crisis. At home, the reality is very different: a ragtag opposition is trying desperately to breathe some life into their pro-democracy campaign, but given a high degree of public apathy, they are having little luck. Instead of allowing the ARD to be exposed for a paper tiger, the military regime has chosen to go for a policy of overkill that has given rise to an impression of a desperate government clinging on to power in the face of a strong and organised opposition. Against this backdrop, it becomes easier to understand the reasons underlying a fall of 74% in foreign investment reported in this newspaper last week. As it is, Pakistan is struggling against the negative investment climate created by the presence of a military government; the foreign currency accounts freeze imposed by Nawaz Sharif; the sanctions slapped on Pakistan following the nuclear tests three years ago; the war like sounds emanating from Kashmir; and our support for the Taliban. Instead of trying to soothe international public opinion, the government has chosen to arrest hundreds of political activists to prevent a peaceful rally from taking place. On the other hand, the Deoband group was permitted to hold a huge religious gathering recently while the breakaway wing of the Muslim League was free to hold a public meeting in Islamabad. Unfortunately, bureaucrats and generals are unaware of the impact of these policies and actions abroad. According to their narrow thinking, they can insulate their ham- handed treatment of the opposition here from Pakistan's image abroad. Welcome to the real world: a single small headline about mass arrests in London's daily Telegraph or the New York Times, or images of the crackdown in the BBC or CNN can cost millions of dollars in lost investments and cancelled reservations by such overseas visitors who are brave enough to venture to our shores. Our rulers have not come to terms with a vastly smaller world as a result of instant communications via radio, satellite television and the Internet. For them, the well-worn and shop-soiled mantra of "our internal affair" is enough to ward off international criticism and its fallout. In today's global economic climate, bilateral aid and soft loans are rapidly dwindling. Multilateral agencies like the IMF and the World Bank have stringent conditionalities, and private banks charge a high interest rate for loans. The only realistic route to development for poor countries is to attract foreign direct investment in industry as well as the social and physical infrastructure. But before investing, foreigners want a secure return on their capital as well as security for their staff. In Pakistan, we can guarantee neither: the long drawn-out face-off between Hubco, the giant power project set up by a consortium of Saudi, British and Japanese investors and the Pakistan government has ensured that very few foreigners will risk their money in a country where courts generally rule in favour of the government. And the murder of four Texas Union employees in broad daylight in Karachi four years ago has given us the reputation of being a pretty lawless country. The repeated threats against western citizens and interests by religious fanatics has not helped repair this damage. Apart from security, all investors whether local or foreign need continuity of policies, even if they are bad policies. In Japan, there have been eleven prime ministers in the last twelve years. This change of faces has not altered the broad parameters of economic and fiscal policies, and the Japanese economy has been chugging along, albeit in low gear currently owing to a prolonged recession and factors other than change of leadership. In Pakistan, a change in government causes not just the removal of a few top politicians and bureaucrats but the wholesale scrapping of policies. This has a profoundly unsettling effect on the investment climate as one group of businessmen is identified with a political rival and is therefore harried, and policies changed to damage their interests. The Wapda chairman may take pride in having forced Hubco to reduce their tariff by a cent or so, thereby saving his organization several crores. However, he has inflicted damage worth hundreds of millions of dollars in lost investments to the national economy. Unfortunately, being a serving general, he does not have to listen to advice from civilian cabinet ministers. But the damage has been done, and it will be a very brave or foolish investor who puts together a consortium like Hubco again. The inherent lack of stability that we suffer from has therefore little to do with the form of government, and more to do with the maturity of our leaders whether they are in or out of uniform. Unfortunately, most of our leadership is out of sync with how the world works. For instance, the Islamic Ideology Council probably has no clue about the havoc it has caused by declaring interest unIslamic. The government, by dithering and appointing committees and task forces instead of vigorously opposing this bizarre and unworkable decree, has caused more confusion here and abroad. Whenever our officials go abroad seeking fresh investments, they are immediately asked to clarify the government's position on this needlessly contentious issue. And so it goes... In brief, Pakistan has enough problems to contend with as it is. Must our leaders create even more crises for themselves and the rest of us?
SPORTS 20010505 ------------------------------------------------------------------- Waqar's men most talented in world, says Pybus ------------------------------------------------------------------- NOTTINGHAM (England), May 4: Pakistan launched their cricket tour of England by proclaiming themselves to be arguably the most talented side in the world. Newly-appointed English-born coach Richard Pybus said on Thursday the team would face a tough battle to win the two-Test series starting later this month. But he made it clear who he expected to win. "It's arguably the most talented side in the world," he said of his new charges. "And it's my job to channel it." The 37-year-old coach, in his second tenure in the role, added: "We can't come over here and expect to push England around. We're going to have to work bloody hard." Pybus, who was recruited by Pakistan on Tuesday, just hours before the squad flew to England, said his first priority was to take stock of both his players and his new situation. "I want to get to know the players, get a feel of where they're going," said Pybus. "I want to get a feel of what's happening in Pakistan cricket. I want to know the right people are on board to make Pakistan a real force in the world." England beat Pakistan in their last meeting, winning a three-match away series 1-0 at the end of last year. Nasser Hussain's side has won their last four Test series. Pakistan, however, despite a mediocre 2000-01 season, have come out on top in each of their last three tours to England. Captain Waqar Younis, who has been in his job only a few more weeks than Pybus, was equally confident. "We have come with a positive frame of mind," the fast bowler said. Last year's defeat had hurt. "Hands up, we lost and England played really well." But he added: "We want to prove we are the best side... We want to prove we can beat any side in the world." Pybus, who made his name in charge of South African side Border, only lasted three months before being sacked as Pakistan coach in 1999. This time he has been given a short-term contract, to be reviewed at the end of the current tour. "I was bitterly disappointed," he said of his sacking, which followed a shake-up in the Pakistan Cricket Board in the wake of a military coup. "You don't turn a side around in one month. "The problem wasn't with the players. The players were as shocked as I was. It was the decision of one man and one man alone (the then- chairman of the board). "It's strange how the wheel spins full circle."-Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010504 ------------------------------------------------------------------- Waqar wants to team up with Wasim ------------------------------------------------------------------- NOTTINGHAM (England), May 3: Pakistan captain Waqar Younis made an apparent U-turn Thursday by saying he wanted to team up with fellow pace bowler Wasim Akram for the Test series against England. The newly appointed Waqar, who had suggested just before the tour that Wasim could struggle to make the starting eleven, said: "Hopefully I'll open (the bowling) in the Test match with Wasim Akram. "Of course, I want Wasim in the side. He's a key man." Waqar, who is part of the Pakistan selection panel, added he had made his peace with his rival after a feud two years ago, when he had accused former team captain Wasim of wrecking his career by plotting to keep him out of the side. "We are friends, it's fine what we had, we've put in the past. Now we want to prove we are the best side, that we can beat any side in the world." Pakistan, who arrived in England on Wednesday, begin their tour on Friday with a three-day game against a British Universities team. The side will play two Tests and take part in a triangular one-day series also involving Australia. Before arriving in England, Waqar had said that Wasim, the only bowler in cricket history to take more than 400 wickets in both Test and one-day cricket, could be overlooked in favour of young quick bowlers Shoaib Akhtar and Mohammad Sami. Akhtar, however, is still in Pakistan after failing a pre-tour medical, although he is expected to join his team mates at the weekend. Medical checks aside, new team coach Richard Pybus made it clear Thursday that all was well within the Pakistan squad. "Team spirit is a key ingredient. Waqar has the respect of all the guys. Everybody gets on well," he said. The squad practised for one-and-a-half hours at Trent Bridge on Thursday before rain ended the session. The first Test starts on May 17. Team manager Saeed Yawar, in an apparent reference to the match- fixing allegations, the reports of team rows and previous ill- tempered series between the sides, said: "I would be very grateful if you could judge us from today onwards history we would like to forget. "We will play in the best traditions and you will see cricket at its best."-Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010503 ------------------------------------------------------------------- 'Rawalpindi Express' derails again: Team off to England ------------------------------------------------------------------- Reporter KARACHI, May 2: Shoaib Akhtar failed in the first hurdle on his comeback bid when he did not board the flight with the rest of the Pakistan team members for London on a demanding 54-day England tour. Dubbed as the "Rawalpindi Express", the 25-year-old showed immediate signs that his controversial and perennial injury-prone career was heading for troubled waters as he stayed back because of stomach upset which caused dehydration. Although the excuse looks flimsy, far from any logic and sense, at least that's what the Pakistan Cricket Board (PCB) said. In all probability, the 15-Test high-profile player but so far an under achiever will miss the three-day tour-opener against the British Universities at Nottingham starting Friday. The first Test at Lord's is scheduled from May 17. The PCB officials didn't confirm when the injury-prone bowler would join the team, but admitted that he would undergo a series of tests. "They are routine medical tests. We are sure that there is nothing series, but it's just a precautionary measure," an official of the PCB said. The PCB official hand-out later said Shoaib would also be required to undergo fitness tests. "He underwent fitness test on May 1. He could not appear earlier on account of stomach ailment from which he has not recovered fully. "He will join the team, after getting fully fit," the statement said, without elaborating what would happen if he failed fitness and medical tests. The PCB official said Shoaib was down with stomach disorder ever since he returned from Australia last month. The enigmatic Shoaib has not appeared in a competitive match since the Dunedin one-dayer against New Zealand where he hobbled off the ground with a hamstring injury. The 'Rawalpindi Express' had also failed to complete last year's tour to the West Indies while his last first-class match was 15 months ago when he played for Pakistan in the third and final cricket Test against Sri Lanka at Karachi. Shoaib, whose 45 wickets have cost over 35 runs each, has been the blued-eyed boy ever since the present establishment took control of cricket affairs in November 1999. The present establishment have not only done extra favours, they are also accused of discrimination when taking care of another "ordinary' all rounder Azhar Mahmood. While Shoaib was treated in Australia and England, Azhar remained under the consultation of local specialists. The PCB provided Shoaib accommodation in a five-star hotel in Lahore while Azhar was lodged in a two-star facility. So much so, when the PCB received a telephone bill of Rs 500,000 incurred by Shoaib Akhtar, no eye-brows were raised and the dues were cleared immediately. Ironically, most of the current and former cricketers are still awaiting clearance of their dues. Needless to say the PCB has spent something around rupees five million on Shoaib and even hired exclusively a bowling consultant to defend his bowling action. Squad:Waqar Younis (captain), Inzamam-ul-Haq (vice-captain), Saeed Anwar, Imran Farhat, Mohammad Wasim, Salim Elahi, Yousuf Youhana, Younis Khan, Faisal Iqbal, Rashid Latif (wicketkeeper), Abdur Razzaq, Azhar Mahmood, Wasim Akram, Mohammad Sami, Saqlain Mushtaq and Mushtaq Ahmad. Manager: Yawar Saeed Assistant manager: Ahmad Khan Doctor: Riaz ------------------------------------------------------------------- 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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