------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 26 May 2001 Issue : 07/ -------------------------------------------------------------------
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CONTENTS =================================================================== NATIONAL NEWS + India's formal invitation received: Musharraf to respond shortly + Pakistan refuses Most Favoured Nation status to India + Anti-terrorism law being amended: Bid to curb sectarianism + Provinces asked to make district-based budgets + Former Navy Chief Admiral Mansurul Haq, wife being flown back + United Kingdom invites Pakistan for talks on vital issues + Denmark reschedules Pakistan loans + Sindh amends law on removal from service + Chinese Admiral lauds Pakistan Foreign Policy + Strategy to create 2 million jobs in next fiscal okayed + Judges case to be referred to Supreme Judicial Council + IMF says situation remains difficult + International Monetary Fund opposes direct lending to provinces + Azerbaijan, Pakistan to boost defence ties --------------------------------- BUSINESS & ECONOMY + 4.5% a year growth rate target envisaged + Shaukat sees 8pc growth in large-scale industry + Additional Sales Tax may be doubled + Government plans $20 billion export target by 2005 + PIB's get poor response + Guidelines for exporters + Foreign investment banks role restricted + Mari Gas Field shareholders rate of return hiked + Government meets bank borrowing target + Rupee falls to lifetime low --------------------------------------- EDITORIALS & FEATURES + The Kidney Centre � denationalization Ardeshir Cowasjee + You don't shoot admirals, do you? Ayaz Amir + A question of image Irfan Husain ----------- SPORTS + India agrees to send team to Pakistan + Waqar's men disgraced at Lord's + Waqar claims hat trick to rout Leicester
DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS =================================================================== NATIONAL NEWS 20010526 ------------------------------------------------------------------- India's formal invitation received: Musharraf to respond shortly ------------------------------------------------------------------- ISLAMABAD, May 25: Chief Executive Gen Pervez Musharraf would shortly respond to Indian Prime Minister Atal Behari Vajpayee's formal invitation which was received here on Friday. "A letter from the Indian Prime Minister, Mr A.B. Vajpayee, to the Chief Executive, Gen Pervez Musharraf, inviting him to visit India was delivered today to the foreign secretary by the acting high commissioner of India," said a statement by the Foreign Office spokesman here. "The chief executive will send a reply shortly," it said. It was delivered to Foreign Secretary Inamul Hague by acting Indian high commissioner to Pakistan here on Friday, it said. Meanwhile, an spokesman for the Indian foreign ministry said in New Delhi that Prime Minister Atal Behari Vajpayee on Friday formally invited Chief Executive Gen Pervez Musharraf to New Delhi for summit-level peace talks. The invitation to Gen Musharraf and his wife was conveyed by India's acting high commissioner in Islamabad, Sudhir Vyas, to Foreign Secretary Inamul Haq in Islamabad on Friday morning, the spokesman said. In his letter to Musharraf, Vajpayee urged the chief executive to "pursue a path of reconciliation." "I invite you to walk this high road with us," Vajpayee said. "We have to pick up the threads again, including renewing the composite dialogue, so that we can put in place a stable structure of cooperation and address all outstanding issues, including Kashmir." In his letter, Vajpayee emphasized that New Delhi had been pursuing a path of peace and this meeting was an opportunity to carry forward the dialogue process. "India has, through dialogue, consistently endeavored to build a relationship of durable peace, stability and co-operative friendship with Pakistan," he said. "For the welfare of our peoples, there is no other recourse but a pursuit of the path of reconciliation, of engaging in productive dialogue and building trust and confidence," he said. Assuring Musharraf of his "highest consideration" to the proposed dialogue, the Indian premier also made it clear that the talks would not just centre around Kashmir. Foreign secretary-level talks between India and Pakistan have remained frozen for two years with Islamabad refusing to discuss any subject other than "the core issue" of Kashmir. India has drawn up a list of eight subjects, as part of a composite dialogue process, which includes various confidence building measures to increase people-to-people contact and strengthening trade and economic relations. Recalling his landmark bus ride to Lahore, Vajpayee said the main objective of the visit was to begin "a new chapter in our bilateral relations." "I had recorded at the Minar-i-Pakistan that a stable, secure and prosperous Pakistan is in India's interest; that remains our conviction," Vajpayee said in his letter to Gen Musharraf. No dates of the summit between the two leaders have been mentioned in the letter. However, according to sources, the visit is unlikely to take place before July this year as Vajpayee is having a knee operation on June 7 in Bombay and plans to take the month off for recuperation. Mirwaiz: Mirwaiz Umar Farooq, a leader of the All Parties Hurriyat Conference, said on Friday a summit between Pakistan and India could be a first step in resolving the Kashmir dispute, but that the Kashmiris will have to be included in negotiations.-Agencies DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010523 ------------------------------------------------------------------- Pakistan refuses Most Favoured Nation status to India ------------------------------------------------------------------- Khaleeq Kiani ISLAMABAD, May 22: Pakistan has refused to grant most favoured nation (MFN) status to India, saying it would continue to pursue its present policy on this issue. "There would be no change in our policy. We would continue with our existing policy and consider it at an appropriate time," Abdul Razzaq Dawood, Federal Commerce Minister, told Dawn after a meeting with visiting delegation of Saarc Chamber of Commerce and Industry (SCCI) here on Tuesday. The minister said Pakistan would allow trade of items which it considered in its interest. Responding to a question on establishment of warehouses near border areas, Razzaq Dawood said a comprehensive plan would be devised on the issue sometime later. He said during his talks with the visiting delegation, the participants mostly discussed issues pertaining to World Trade Organization and agreed that all Saarc countries should have a uniform stand. He said expansion of regional trade and adoption of a joint strategy in the forthcoming Doha meeting of WTO on all issues particularly TRIMS, TRIPS and ATC related to Saarc region were essential for the betterment of the people of this part of the world. To another question relating to a demand by the India-Pakistan Chamber of Commerce and Industry (IPCCI) to ease visa restrictions, the minister said the issue was not discussed in detail. "The meeting discussed in detail the intra-regional trade and joint stand on the WTO issue," said the minister in a brief informal talk. Sources said the IPCCI President, Chirayu R. Amin, raised the issue of granting MFN status to India by Pakistan but the minister told him these matters would be taken up at the Saarc forum. On the question of intra-regional trade, the participants of the meeting agreed that the challenges posed by the WTO could be met through local and intra-regional trade. The meeting agreed that regional blocs like those in Europe and Africa had 90 per cent of total trade within their own blocs but it was almost non-existent in the case of Saarc countries. Earlier, business leaders of India and Pakistan agreed that bilateral trade had the potential to reach up to $10 billion though official trade stood at around $200 million and unofficial at $1 billion, at least five times higher than the official trade. The businessmen of two countries urged their governments to ease visa restrictions for business community and expand the list of tradable items that now stood in the vicinity of 600. The IPCCI also constituted a joint committee to prepare recommendations to address issues relating to infrastructure, tariff and list of tradable items. Speaking at a press conference, the IPCCI President, Chirayu R. Amin and co-president Ilyas Bilour, demanded that both countries should take steps to boost bilateral trade. Chirayu Amin said: "We should try to take long-term measures for trade enhancement. We will discuss with the Pakistani ministers the issue of giving the status of most favoured nation (MFN) to India." Ilyas Bilour, however, clarified on the occasion that they would not support this demand by the Indian delegation. To a question, the Indian business leader said tax tariff, infrastructure, logistics and travelling were the main issues hindering enhancement of trade and these were discussed in detail by the two sides. "Ultimately as neighbours we have to counter the world which is opening up and we realize that more open and free trade would tremendously benefit the two economies." On the question of political disputes, Mr Amin said his delegation would convey the feelings in Pakistan to the Indian government. "We are not political people but we know that Kashmir issue is a major hurdle between Pakistan and India to come closer," he said. Ilyas Bilour stressed the need for bilateral trade enhancement and said why couldn't Pakistan and India do business if China and America could do so. He said there was tremendous potential for bilateral trade and co-operation in fields like agriculture, communication, industry, services and information technology. Earlier, inaugurating the IPCCI meeting, federal minister for privatisation, Altaf M. Saleem, said interaction between the business communities of Pakistan and India would be helpful in resolving disputes, adding both countries could benefit from each other's experiences. He stressed that business community should play a key role in the resolution of bilateral disputes that hinder the two-way relations. "We should understand much better the issues confronting us," he said, urging upon the Indian delegation to convey Pakistan's commitment for having good relations with India. Iftikhar Ali Malik, President of FPCCI, in his welcome speech asked Indian businessmen that they could make arrangements with the Export Processing Zones (EPZs) in Pakistan to buyback finished products manufactured in these zones using raw material imported from India. Although the IPCCI meetings concluded here on Tuesday but most of the Indian businessmen are staying back for the Saarc Chamber meetings. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010523 ------------------------------------------------------------------- Anti-terrorism law being amended: Bid to curb sectarianism ------------------------------------------------------------------- M. Ismail Khan PESHAWAR, May 22: The federal government is planning to introduce major amendments to the Anti-terrorism Act, 1997 to ban sectarian organizations involved in terrorism, stop fund-raising and crackdown on militants. A draft of the ordinance, expected to be promulgated sometimes next month, has been circulated among the four provinces which would submit their views by May 31, the official sources said. With the promulgation of the ordinance to incorporate amendments - by far the most comprehensive law to deal with growing sectarianism in the country. The Suppression of Terrorist Activities (Special Courts), 1975 would stand repealed, the draft document says. The Anti-Terrorism Act which hitherto was enforced in the Punjab and Sindh only, with the proposed amendments will also be extended to the NWFP and Balochistan. The Anti-Terrorism (Amendment) Ordinance, 2001, as it will be called upon promulgation, in section 6 defines terrorism as a) the use, or threatened use, designed to coerce and intimidate or overawe the government or the public or a section of the public. And b) the use or threat is made for the purpose of advancing political, religious, ideological or ethnic cause. According to the proposed ordinance, an action will be called terrorism if it involves serious violence against a person, involves serious damage to property, endangers a person's life, other than that of a person committing the action, incites hatred and contempt on religion, sectarian or ethnic to stir up violence, creates a serious risk to health or safety of the public or section of the public, is designed seriously to interfere with or seriously disrupt an electronic, communications system or public utility service. Section 6 of the proposed ordinance provides for punishment for certain acts of terrorism. It provides death sentence or life imprisonment and or fine in cases where death is caused whereas in case of grave bodily harm or injury, the guilty could be awarded life-term and or fine. Damage to property is liable to sentence of imprisonment not exceeding 14 years. According to the draft ordinance, an organization which commits or participates in terrorism, prepares for terrorism, promotes or encourages terrorism, supports and assists any organization concerned with terrorism, or patronizes and assists in the incitement of hatred and contempt on religion, sectarian or ethnic lines that stir up disorder, makes no attempt to expel from its ranks or ostracise those who commit acts of terrorism and presents them as heroic persons will be declared as terrorist organization. Such organization, says the draft amendments in the Anti- Terrorism Act, will be proscribed if the federal government has reasons to believe that the organization is involved in terrorism. Such proscribed organizations, however, will have the right of review to the federal government whose decision would be final. The draft amendments also provides for sealing of offices of any proscribed organization besides freezing of its accounts, movable and immovable property and seizure of literature, posters, banners, printed or electronic material. The draft ordinance also bars proscribed organizations from issuing press statements or press conferences and makes it an offence for any person who abets or aids its publication and dissemination. Under Section 11F of the draft ordinance, a person is guilty of an offence if he belongs or professes to belong to a proscribed organization, solicit or invites support for a proscribed organization or arranges, manages or assists in managing, or addressing any meeting to support proscribed organization, wears, carries or displays any article, symbol, slogan or any flag or banner connected with or associated with any proscribed organization. According to the draft amendments, a person who commits such an offence may be arrested by a police officer without a warrant and shall be liable on summary conviction to a simple imprisonment for a term not exceeding six months or to a fine or both. A person who addresses a meeting whether from within the country or abroad, and the purpose of his address is to encourage support for a proscribed organization or to further its activities will also be liable to punishment for a term not exceeding 10 years. The proposed amendments also prohibit and make it an offence for any person who raises funds, provide money or property, receives money or other property or uses and possess money or property with the intention or suspicion that it will be used for terrorism. The draft ordinance declares money-laundering, retention or control by or on behalf of another person, of terrorist property an offence in which case the onus to prove innocence shall lie on the defendant. It also provides for the protection of witnesses and says that the court may give due protection to witness by maintaining anonymity of their names from the court records and during proceedings and that the proceedings may be held in camera, where necessary. More importantly, the draft ordinance also makes it an offence for any person who provides or receives instruction or training in the making or use of firearms, explosives, chemical or other weapons and any person found guilty of such an offence shall be liable to a term not exceeding 10 years. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010523 ------------------------------------------------------------------- Provinces asked to make district-based budgets ------------------------------------------------------------------- Reporter ISLAMABAD, May 22: The federal government has directed all the four provinces to prepare their budgets on "district-by-district basis" under the new budget preparation and expenditure assignments. According to official sources, under the new system, important expenditure assignments will be devolved to districts, including primary and secondary education, primary healthcare, public works, irrigation services, and some police and judiciary functions. Ultimately, the districts will have to prepare and manage a large share of what is currently part of the provincial budgets, considering also that spending on social sectors and poverty alleviation is expected to increase significantly in the coming years. As it will take time to build necessary capacity to do this, the authorities have decided that during the transition period (which could last up to three years), provinces will remain responsible for personnel payments and ongoing development projects, while the districts will be responsible for non-wage recurrent budgets and new development projects. Cognizant of the shortcomings in the current system of provincial and local government finances, the authorities are currently engaged in preparing a fiscal framework for the devolution plan. A local government law is under preparation, and the authorities have established an institutional framework for the preparatory work, including the Fiscal Decentralization Committee (FDC), the Provincial Finance Commissions (PFCs), and District Implementation Committees (DICs). Sources said the new local government structure (district, tehsils and unions) would require substantial institutional strengthening through hiring of trained staff and offering incentives to those willing to be posted from the provinces to local administration. As regard tax assignment and revenue sharing, the Provincial Finance Commissions have been asked to identify taxes that should be devolved from the provinces to the districts, and rationalize plethora of local taxes. According to some proposals, tax on immovable property and some other minor taxes, like entertainment tax and professional tax, could be given to the districts. For the provinces, it is proposed that number of taxes may be reduced and the agriculture income tax may be developed into one of the major provincial revenue sources. It is also suggested that the revenue from a number of taxes, like stamp duties and motor vehicle tax could be shared by provinces and districts. However, little consideration appeared to have so far been given to how the federal and provincial revenue sharing formula should be adjusted under the new system. The Provincial Finance Commissions have also been asked to determine the modalities of fiscal transfers from provinces to districts. The authorities intend to establish an equalization framework, which will take account of needs and capacities of each district. Although the specifics of this framework are still under discussion, the government wants to devise a system by which grants to each district would be determined on the basis of a set of indicators, focussing on need, quality of service delivery, and own revenue mobilization effort. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010523 ------------------------------------------------------------------- Former Navy Chief Admiral Mansurul Haq, wife being flown back ------------------------------------------------------------------- Masood Haider NEW YORK, May 22: The US marshals are expected to hand over former navy chief Admiral Mansurul Haq, to Pakistan's deputy prosecutor general Azmat Saeed, on board the Pakistan Airlines flight Pk 704 at JFK Airport here an hour before the departure of the flight to Pakistan, embassy sources here told Dawn. Admiral' Haq's wife would also leave for Pakistan by the same flight. The flight was expected to depart around 6:45pm New York Time (i.e., 3.45am Pakistan time). No one was available from the PIA staff at the airport to comment on Admiral Haq's transfer. It was learnt, however, that Admiral will be escorted by the Pakistani team and would fly without handcuffs and shackles. This will be the first time that US will extradite any Pakistani wanted in connection with corruption charges in Pakistan. The PIA has kept its executive class exclusively for the transfer and travel of admiral Haq and reportedly 13 passengers booked to travel in the club class were offered seats on Wednesday flight or were told that their tickets would be endorsed to other airlines. At the Manchester airport, PK 704 aircraft would not be allowed to gate at the airport instead it will remain outside on the tarmac. The ex-naval chief who is wanted in Pakistan on corruption and kickback charges, has agreed to be voluntarily repatriated to Pakistan to face proceedings. His extradition was sought by Pakistan and agreed to by the US, and he was taken into custody in Austin, Texas, which he had made his home for the past two years or so. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- United Kingdom invites Pakistan for talks on vital issues ------------------------------------------------------------------- Syed Talat Hussain ISLAMABAD, May 21: Britain has invited Foreign Minister Abdus Sattar for formal talks in London, western diplomatic sources told Dawn on Monday. The invitation has been extended to the foreign minister by his British counterpart Robin Cook , in the shape of a letter sent last week. The British High Commission in Islamabad confirmed that a written invitation has been extended to the foreign minister. "Mr Robin Cook has written to Mr Sattar inviting him to London for formal talks. There has not yet been a formal response to the invitation from Pakistan," a spokesperson of the British High Commission said. The visit is likely to take place in June and will be the first contact between the two countries at the foreign minister level since the military government assumed charge in October 1999. The British government's first reaction to the political change in Pakistan was harsh with some of its ministers including Mr Cook strongly criticizing the development, and being in the forefront of the move to suspend Pakistan's membership of the Commonwealth. Members of the British government have also been expressing concerns over the proliferation of nuclear weapons pointing fingers at Pakistan as the source of the problem. The Musharraf government on several occasions raised the issue of the lack of cooperation from Britain on the extradition of the accused wanted by the National Accountability Bureau. Diplomatic sources said the visit in part is meant to straighten the tangles left behind by that episode in the relations between the two countries. "I do not expect a major change in the UK's policy towards the Musharraf government. But obviously there is great interest in Great Britain about which direction Pakistan will be going, both domestically and on important foreign policy fronts. The invitation is an expression of that interest and concern," said a western diplomat. No official word was available from the Pakistan Foreign Office on the British invitation for the visit. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- Denmark reschedules Pakistan loans ------------------------------------------------------------------- Reporter ISLAMABAD, May 21: Denmark has rescheduled Pakistan's loans worth 14.640 million krones for 20 years, including a grace period of 10 years free of interest. These loans were to be repaid by Pakistan from March 1, 2000, to September 30, 2001. A bilateral agreement to this effect was signed here on Monday by Seven B. Bjerregaard, the charge d' affairs of Denmark, and Nawid Ahsan, the secretary for the economic affairs division. The agreement has been signed in pursuance of agreed minutes of the Paris Club for consolidation and rescheduling of debt service payments. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- Sindh amends law on removal from service ------------------------------------------------------------------- KARACHI, May 21: Sindh Governor Mohammedmian Soomro on Monday promulgated the "Removal from service (special powers) (amendment) ordinance-2001." The ordinance, which amends a similar ordinance promulgated last year, shall be deemed to have taken effect from August 30, 2000. It says that in sub-section (I) of the removal from service (special powers) ordinance-2000, the marginal note, for words and comma removal, suspension, the words and commas dismissal, removal and compulsory retirement shall be substituted. In clause (a) of the ordinance-2000, words "Or is guilty of being habitually absent from duty without prior approval of leave" have been added. Similarly, in sub-clause (iii) of clause (c), following sentence has been inserted: He has entered into a plea-bargain under any law for the time being in force and has returned the assets or gains acquired through corruption or corrupt practices voluntarily. The amended ordinance further states that before passing an order, the competent authority shall, by order in writing, inform the accused of the action proposed to be taken in regard to him and the grounds of the action and give him a reasonable opportunity of showing cause against that action within seven days or within such extended period as the authority may determine. No such opportunity shall be given where the competent authority is satisfied that in the interest of security of Pakistan or any part thereof, it is not expedient to give such opportunity. Similarly, no such opportunity shall also be given where the accused is dismissed or removed from the service or reduced in rank on the ground of conduct which has led to a sentence of fine or of imprisonment or where the competent authority is satisfied for reasons to be recorded in writing that it is not reasonably practicable to give the accused an opportunity of showing cause. The dismissal or removal of premature retirement from service or reduction to lower post or pay scale of a person under sub-section (I) shall not absolve such person from liability to any punishment to which he may be liable from an offence under any law committed by him while in service, the ordinance says. It further envisages that the competent authority shall, before passing an order under section 3, appoint an inquiry officer or inquiry committee to scrutinize the conduct of person in government service or a person in corporation service who is alleged to have committed any of the acts or omissions specified in section 3. The inquiry officer or the inquiry committee shall communicate to the accused the charges and statements of allegations specified in the order of inquiry passed by the competent authority. It shall require the accused within seven days, from the day the charge is communicated to him, to put in a written defence. It shall enquire into the charge and may examine such oral or documentary evidence in support of the charge or in defence of accused as may be considered necessary and the accused shall be entitled to cross-examine the witness against him. The inquiry officer or committee shall hear the case from day to day and no adjournment shall be given except for special reasons to be recorded in writing and intimated to the authority. Where the inquiry officer or the committee is satisfied that the accused is hampering or attempting to hamper the progress of the inquiry, he or it shall record a finding to that effect and proceed to complete the inquiry in such a manner as he or it deems proper in the interest of justice and submit the findings and recommendations to the competent authority within 25 days of the initiation of the inquiry. The competent authority may dispense with the inquiry if it is in the possession of sufficient documentary evidence against the accused or for reasons to be recorded in writing, or if it is satisfied that there is no need of holding the inquiry. Where a person who has entered into a plea-bargain under any law, for the time being in force, and has returned the assets or gains acquired through corruption or corrupt practices voluntarily, the inquiry shall not be ordered. However, show-cause notice shall be issued on the basis of such plea-bargain to such person informing him of the action proposed to be taken and requiring him to submit written reply within fifteen days of the receipt of the notice. On the receipt of the reply, the competent authority may pass such orders as it may deem fit.-PPI DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- Chinese Admiral lauds Pakistan Foreign Policy ------------------------------------------------------------------- KARACHI, May 21: Rear Admiral Zhang Yan, Deputy Commander, North Sea Fleet, China, has said that Pakistan has maintained peace and stability in South Asia by means of its peaceful, independent and non-aligned foreign policy. He was addressing a ceremonial parade held at the Pakistan Navy dockyard in connection with the 50th anniversary of Pakistan-China diplomatic relations. Rear Admiral Zhang said Pakistan was a great nation. The people of Pakistan were very hard-working and courageous, he said and added that the two countries were close neighboursm, shared common waters and mountains and their friendship enjoyed a long history and was time-tested. The Chinese rear admiral said that they had come a long way to this beautiful city of Karachi and were impressed by the warm welcome accorded to them by the Pakistan Navy. He said he was confident that the visit would strengthen the relations between the navies of the two countries and open a new chapter in the Pakistan-China friendship. Rear Admiral Zhang wished prosperity and further development for Pakistan and its people. Earlier, on his arrival at the venue, he was presented a guard of honour. He inspected the guard and appreciated its turnout. Flags of the two countries were also hoisted and national anthems of Pakistan and China were played by Pakistan Navy and PLA (Navy) bands. In his welcome address, Rear Admiral Shahid Karimullah, Commander of Pakistan Fleet, said that Pakistan-China relations represented a model for peaceful, co-operative and friendly relations between countries with different political and social systems and cultural backgrounds. "Our friendship has stood the test of time under all circumstances, whether it be war or peace, economic or political difficulties or even international pressure. It has never wavered", he added. Rear Admiral Karimullah said: "Since the induction of PNS Nasr , the fleet tanker from China, our mutual relations had improved at a steady pace. Development of Jalalat- type missile boats, equipped with state-of-the art anti- ship missile, acquisition and successful testing of surface-to-air missile system on board Type- 21 destroyers are the hallmark of our developing naval relations", he added.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010526 ------------------------------------------------------------------- International Monetary Fund opposes direct lending to provinces ------------------------------------------------------------------- Ihtashamul Haque ISLAMABAD, May 25: The International Monetary Fund has opposed the provinces demand that they should be allowed to directly negotiate and borrow from the international donor agencies. Official sources said here on Friday that the IMF review mission, which left for Washington on Thursday after having spent about three weeks in Pakistan, had told the government that external assistance to provinces must be approved by the federal government and that they, in principle, should not be allowed to seek any foreign funding directly. Sindh Finance Minister Abdul Hafeez Sheikh had demanded of the federal government on Thursday in Karachi to allow provinces to have direct lending from the foreign donor agencies. However, the sources said donors were not ready to offer any loaning facility to the provinces directly. They said the federal government should continue with the practice of negotiating loans from foreign lending agencies, which could be extended to the provinces later. The government of Sindh, sources said, needed additional funding to run its affairs. However, it was told that unless the National Finance Commission was revised or constituted afresh, no new funds could be made available to the province. According to sources, in the first half of 2000-2001, Sindh's overall spending was limited to Rs30 billion, compared with a budgetary target of Rs39 billion. Only 80 per cent of the authorized amount on non-wage outlays was spent, and except for poverty alleviation programme, no "major expenditures" were authorized. For the Annual Development Programme, only Rs1.4 billion were disbursed compared with a half-year target of Rs4.5 billion, reflecting in part the fact that the provincial finance managers had started reviewing the "graveyard of development projects" with the objective to stop spending on low priority, half finished projects. On the recurrent side, savings were achieved through a ban on new recruitment (with the exception of health and education staff) and the elimination of approximately 12,500 civil service positions (out of a total of about 450,000). DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010520 ------------------------------------------------------------------- Strategy to create 2 million jobs in next fiscal okayed ------------------------------------------------------------------- By Our Staff Reporter ISLAMABAD, May 19: The Chief Executive Gen Pervez Musharraf here on Saturday approved a pro-active national employment strategy targeted to create nearly two million additional jobs during the next financial year. He highlighted construction, in particular housing, together with small- and medium-scale industries and IT as the areas of special focus and attention in view of their high employment generation capacity. He was reviewing a presentation on employment strategy by the Planning Commission. Faced with an economic slowdown due, in large part, to the vicious debt trap and the ongoing drought, Gen Musharraf emphasised the need for major supporting policies by the Government to maintain the present employment levels and generate additional job opportunities. In this regard, he referred to construction and housing as areas carrying the twin advantage of providing housing to the shelterless millions as well as generating major economic and manufacturing activities leading to creation of jobs for the skilled and unskilled hands. The chief executive also accorded approval, in principle, to the launching of major low-cost housing projects both in the urban and rural areas. He directed that consideration be given by the provincial governments to the possibility of allowing ownership rights to small houses built on state land in the rural areas on nominal payment. He also directed the ministry of housing to draw up housing programmes for the urban areas and in particular for dwellers of the Kacha Abadis to enable their shifting to cleaner and healthier environs. The chief executive also directed the ministry of finance to work together with the State Bank to generate special funds for the housing sector to be disbursed as loan at affordable cost to the middle and lower-income groups. Pakistan is estimated to require 400,000 additional housing units every year against the 160,000 units being added annually. The ministry of commerce was asked to focus on labour-intensive export growth as each billion dollars' of exports is estimated to create two million jobs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010524 ------------------------------------------------------------------- Judges case to be referred to Supreme Judicial Council ------------------------------------------------------------------- Rafaqat Ali ISLAMABAD, May 23: The government has decided to refer the case of two judges to the Supreme Judicial Council in the next fortnight against whom scathing remarks were made in the SGS case by a seven- member bench of the Supreme Court. Reliable sources told Dawn that the government, after giving sufficient time to the two judges to avail themselves of any legal remedy, had finally decided that the law should take its course, if the judges failed to tender their resignations. The government was in no mood to earn a bad name because of the judges who were considered "loyal" to the previous government, they added. A seven-member bench of the Supreme Court had made remarks against Justice Malik Qayyum and Justice Rashid Aziz Khan on the appeals of Ms Benazir Bhutto and Asif Ali Zardari against their conviction in 1999 when Justice Rashid Aziz was the Chief Justice of the Lahore High Court and Justice Malik Qayyum headed the Ehtesab Bench. The SC bench while sending the case for retrial, had held that conviction of Ms Bhutto and her spouse was the result of bias. Sources said that drop scene was expected in the first week of June when the highest judicial functionary would be back in the country after a month-long visit to North American countries. The SC judgement was passed on April 6, 2001, giving sufficient time to judges to decide about their future line of action. The sources said in case the judges refused to resign, a reference under Article 209 would be made by the President to the Supreme Judicial Council. The Supreme Judicial Council will be headed by the chief justice of Pakistan along with two senior judges of the apex court and two senior chief justices of the high courts. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010524 ------------------------------------------------------------------- IMF says situation remains difficult ------------------------------------------------------------------- Reporter ISLAMABAD, May 23: The International Monetary Fund has told the authorities that Pakistan's macroeconomic situation remains difficult and structural weaknesses persist despite some favourable developments related to inflation and external current account deficit. According to sources, a visiting IMF review mission, led by Clausse Enders, again held a detailed meeting here on Wednesday with a government team led by the Secretary-General, Ministry of Finance, Moeen Afzal, and said that achieving of the programme targets in the near future, specially with regard to foreign exchange reserves, would be challenging. The mission said that sustained implementation of strong-demand management policies and a steadfast adherence to the structural reform agenda would be essential to consolidate the achievements so far made, and build a solid foundation for sustainable high rates of growth over the medium term. The sources said that the mission also believed that given the low level of reserves, careful co-ordination of monetary and exchange rate policies would be critical for the success of stabilisation programme in the short term. However, the mission observed that the authorities were committed to continuing to move to genuinely flexible exchange rate policy. In this behalf the intention of the authorities to discontinue the sale of foreign exchange to inter-bank market to finance oil imports, reduce gradually purchases in the kerb market and implement measures to develop inter-bank market were appreciated. The sources said that Pakistan was also told that there existed significant problems in the way of achieving the programme objectives. Deceleration in agricultural growth and its implications for economic activity could be more severe than projected. Exports could be more adversely affected than currently envisaged by slowdown in the US economy. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010525 ------------------------------------------------------------------- Azerbaijan, Pakistan to boost defence ties ------------------------------------------------------------------- ISLAMABAD, May 24: Pakistan and Azerbaijan have agreed to develop partnership between the two countries by initiating institutionalized defence co-operation. This co-operation would include exchange of visits between the personnel of armed forces of the two countries in order to promote military co-operation which may include areas like military training and education, technical know-how, and information as well as co-operation in medical, logistics and other military fields. A joint statement to this effect was signed by the visiting Defence Minister of the Republic of Azerbaijan, Colonel General Safar Abiyev and Foreign Minister Abdul Sattar here on Thursday. According to the joint statement the two sides would further sign MoUs, protocols and agreements in specific fields relating to military and defence co-operation. It was agreed that the ministries of defence of the two countries would take the above mentioned measures in order to enhance defence co-operation between Pakistan and Azerbaijan. The Minister of Defence of Azerbaijan Colonel General Safar Abiyev is on an official visit to Pakistan on the invitation of the Foreign Minister Abdul Sattar. In addition to his meeting with Chief Executive and the Foreign Minister, the visiting dignitary during his stay also held consultations with the ministers for interior, petroleum and natural resources as well as secretary defence. He also visited the Military College of Signals, Rawalpindi, National Defence College, Islamabad and the Pakistan Ordnance Factories, Wah.-APP
BUSINESS & ECONOMY 20010523 ------------------------------------------------------------------- 4.5% a year growth rate target envisaged ------------------------------------------------------------------- Sabihuddin Ghausi KARACHI, May 22: The government intends to achieve a growth rate of 4.5 per cent a year for next three years and wants to narrow down the fiscal deficit to 3.5 per cent in 2004 from 5.3 per cent. In a three-year plan, (01-02, 02-03 and 03-04), circulated among all the four provinces, the federal government has set for agriculture, a growth rate target of 3.5 per cent, manufacturing 6.9 per cent and for other sectors 5.2 per cent a year. Total revenue generation in the terminal year of the plan -2004-is pitched at Rs851.9 billion. It includes Rs722.8 billion tax revenue which is more than 80 per cent of the expected tax collection in the current fiscal year. Non-tax revenue, too, is expected to increase significantly to Rs129 billion. The plan has set a target of revenue increase to 18.5 per cent of the GDP in 2004 from 16.3 per cent of the GDP at present. Current expenditure is also expected to come down from 18.6 per cent of the GDP to 17.8 per cent of the GDP. In real terms current expenditure is targeted at Rs818.5 billion in 2004. However, the size of the development outlay is set to increase to 4.2 per cent of the GDP from 3.2 per cent at present. If everything goes according to the plan, the federal planners hope to prepare a development outlay of Rs 198.4 billion in 2004. National savings ratio is expected to touch 15.4 per cent mark in 2004 when the government expects a total fixed investment of Rs762.5 billion. Greater investment-Rs572.1 billion - is likely to come from private sector while public sector investment is estimated at Rs190.4 billion. Narrowing down of the current account to 1.1 per cent of the GDP and building up foreign exchange reserves is one of the key targets of the three-year plan, which anticipates 800 million dollars imbalance after exports have fetched 10.75 billion dollars, import bill amounts to 11.75 billion dollars, and there is a substantial improvement in the remittances and inflow of direct foreign investment. Inflation rate is expected to be kept within 5 per cent range all through these years. With these targets, the government has drawn up a strategy, which seeks to promote small and medium business enterprises, broadening of tax base by way of documentation of the economy, reduction of multiplicity of taxes, application of GST throughout the country, stepping up resource mobilization efforts of the provincial governments including tax on agricultural income, generation of resources at district level, adequate system of user charges, rationalization of government expenditure and ensuring adequate flow of funds towards the poverty alleviation projects, improving elasticity in the federal, provincial and local taxes and a constant review of the government's tax laws and policies. Provinces are reported to have expressed serious reservations on the federal government's ambitions and strategy, and are reported to be seeking further explanations and details of the plan from Islamabad. "A collection of Rs400 billion taxes this year looks doubtful," well placed sources in Sindh government said who was skeptical of Islamabad's political will to enforce GST at all levels and in all parts of the country. "If this being so, where would you collect Rs700 billion plus taxes in next three years, " he asks. Then there is another big question on the operation of this plan after the devolution programme is put into practice from August this year. Bureaucrats in Sindh look totally confused on the political, administrative and economic problems they would encounter after the nazims, naib nazims, union councilors and district corporators take charge of their areas. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- Shaukat sees 8pc growth in large-scale industry ------------------------------------------------------------------- Reporter KARACHI, May 21: Federal Finance Minister Shaukat Aziz estimates 8 per cent growth in the large scale industry in the current fiscal year but has no idea on the overall economic growth. "I have not read," quipped the minister on Monday afternoon when a big group of newsmen drew his attention towards a newspaper report which quotes him saying in a pre-budget seminar on Sunday at Islamabad that Pakistan's growth rate in the current fiscal is below three per cent. The Minister was the chief guest at the award distribution ceremony for the corporate excellence to the best managed companies in 1999 on Monday organised by the Management Association of Pakistan (MAP). After the prize distribution ceremony, Shaukat Aziz responded to the questions of the waiting newsmen and said that he expects the International Monetary Fund (IMF) to release the promised third tranche under Standby Facility agreement on schedule. "I believe the IMF review mission is satisfied with Pakistan's economic performance in last three quarters," he said alluding to his meeting with the visiting IMF team on Sunday. Earlier in his speech before the members of the MAP the Minister spelt out the constraints within which he and his team was busy in making budget for the next fiscal. "We want to focus on growth, investment and carry out the economic reforms that obviously demands cost," he said while pointing out the fiscal constraints. "Revival of investors' confidence, investment and growth, containing inflation and poverty alleviation are few of our budget objectives," he pointed out while stressing the point that "enough fiscal space is not available." Deficit financing, he said, is not the smart solution of the economic problems as that warrants more borrowing which means further increase in the fiscal deficit. Within a very limited fiscal space, he said, the government has decided to compensate the employees. He justified the price increase of petroleum products by his government in the past."We could have cheaper fuel with deficit financing but after mortgaging our future generations," he offered logic for his government's policies. The Minister claimed that inflation rate in the current fiscal year has been contained to 4.7 per cent. He, however, acknowledged the public scepticism on government's claim and hurriedly pointed out that all government's figures are now being checked and re-checked by the international donors. The large scale industry, too, has grown by 8 per cent during this fiscal year. However, he said that there is all the need to revive investors' confidence in the government's economic policies to promote investment and growth. A very limited fiscal space also inhibits the government to provide enough funds for social sector. Nonetheless, Shaukat Aziz said that the government has provided 20 per cent more funds for education and has also increased allocation for health. The Minister asked the corporate sector to come forward in a big way and help government in achieving the social sector objectives by adopting schools. Speaking on the corporate and management issues, he said that change is a permanent factor and hence a successful manager is expected to be innovative, receptive to the changes going around the world and maintaining an update information and knowledge. Earlier Moeen Fudda, President of the MAP informed the Minister that the Association has so far organised 900 seminars, eight management conventions and one international seminar. Those who received the MAP Corporate Excellence award from Shaukat Aziz were Pervaiz Ali of Al Ghazi Tractors, Pervaiz Khan of Lever Brothers and Humayun Murad of Orix Leasing. Azhar Khan of Bannu Wools, Javed Anwar of BOC Pakistan and Mohammad Chowdhry of Adamjee Insurance received certificates. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- Additional Sales Tax may be doubled ------------------------------------------------------------------- Reporter LAHORE, May 21: The Central Board of Revenue (CBR) is considering to double the existing 1.5 per cent additional sales tax on unregistered traders and firms to three per cent. The indication to this effect came from CBR member (sales tax) Riaz Malik during a meeting with businessmen at the Lahore Chamber of Commerce and Industry (LCCI) here on Monday. Although Malik did not say it in so many words, he hinted at doubling the additional sales tax to make the unregistered traders and firms to register themselves under the sales tax. He said the revenue collected through additional sales tax had dropped to about Rs4 billion from around Rs6 billion. He, however, admitted that the target of forcing unregistered firms or traders through such penal action had failed to deliver because of several factors not in the control of the tax authorities. Malik also said the traders whose turnover exceeded Rs5 million would have to pay 15 per cent tax from the next financial year instead of two per cent turnover tax they had so far been paying. He said the retailers with a turnover of Rs1-5 million would be exempt from 15 per cent sales tax and would pay two per cent turnover tax on their sales. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010522 ------------------------------------------------------------------- Government plans $20 billion export target by 2005 ------------------------------------------------------------------- Reporter ISLAMABAD, May 21: The Export Market Development Fund (EMDF) meets here on Tuesday to consider measures for boosting exports by 100 per cent at $20 billion by the year 2005 and review the export performance for the current fiscal, commerce ministry sources told Dawn on Monday. The meeting, to be presided over by Federal Minister for Commerce and Industries Abdul Razak Dawood, would also approve Rs142 million budget for the next fiscal. Officials of Export Promotion Bureau, State Bank of Pakistan and ministries of finance and commerce will also attend the meeting. Pakistan is targeting $20bn exports in 2005 and $30bn by 2010 from the current year's of $10bn. The current textile exports of around $6bn are projected to touch $14bn in 2005 and $20bn in 2010. Leather exports, now at $500 million, are estimated to double at $1 billion in 2005 and triple at $1.5 billion by the year 2010. Engineering exports are targeted to touch $1 billion in next four years from the current level of $200 million and further jump to $2.5 billion in 2010. The meeting is expected to approve Rs142m budget for the year 2001- 02 - Rs65m for construction of an EPB building in I-9 sector of Islamabad, Rs18m fund for export promotion purposes, Rs38m for the accommodation of foreign guests and EPB officials and Rs21m for the payment of rent of EPB building. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010520 ------------------------------------------------------------------- PIB's get poor response ------------------------------------------------------------------- Reporter KARACHI, May 19: The State Bank on Saturday borrowed Rs 898 million for the government by selling Pakistan Investment Bonds of three year and five year maturity. The amount sucked in from a fairly liquid inter-bank money market was much lower than the sale target of Rs 3 billion set earlier by the central bank. SBP said it sold three-year PIBs worth about Rs 429 million and five-year PIBs worth Rs 469 million at par value. SBP had received total bids worth about Rs 978 million of which it accepted bids worth Rs 898 million and scrapped the rest. Three- year and five- year bonds carry 12.5 and 13 per cent interest payable through six- monthly coupons. The central bank did not sell 10-year PIBs. The auction of 10- year bonds will be held next month. Senior bankers said most corporates showed little interest in the auction of three-year and five-year bonds on Saturday as they were rather interested in 10-year paper. "Most corporates invest their employees fund in PIBs and since they are switching over from 10-year defence saving certificates to PIBs naturally they want to buy PIBs of the same tenure," said treasurer of a state- run bank. He said banks themselves were least interested in investing surplus funds in three and five year PIBs chiefly because they know that they can earn more profits by employing these funds in much shorter tenures. Some bankers even say they also fear occurrence of an inverted yield curve in future meaning that the short term interest rates might rise above medium and long term rates. The government launched long term Pakistan Investment Bonds last year to attract institutional funds into banking sector. It has so far borrowed a little less than Rs 42 billion through PIBs in five auctions including that of Saturday. The launch of these bonds has helped the government in meeting its borrowing requirements and enabled SBP to mop up excess liquidity from the market. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010520 ------------------------------------------------------------------- Guidelines for exporters ------------------------------------------------------------------- KARACHI, May 19: Pakistan's Embassy in Tokyo has prepared guidelines for Pakistani exporters willing to export their products to Japan. According to these guidelines, released by Export Promotion Bureau (EPB) here on Saturday, there are number of contacts in Japan, information facilities on various websites and libraries, list of Japanese importers, etc. Pakistani exporters can benefit from free facilities and useful information. Japan External Trade Organization (JETRO) trade directory provides list of importers in Japan and their addresses, contact persons. This directory is now available with EPB on CD-ROM and in book form. The interested exporters can also get information about Japanese companies on the website of Japan Chamber of Commerce and Industry at www.jcci.or.jp/home-e.html. Exporters can register on this website and post their own offers. Importers list can also be obtained through Pakistani Embassy website at www.pakistaniemb.itgo.com. Pakistani Embassy can also circulate the offer of Pakistani company to Japanese importers through JETRO Tokyo. The Embassy has suggested Pakistani companies to send the photographs of their production units, offices and detail specifications of products directly to the importers. Japanese importers are very careful in starting new relationships and therefore they like to see the past history of the company for judging the consistency in quality, delivery schedule. IBO Osaka display centre provide opportunity for display of products free of cost. Pakistani exporters can contact this display centre at the following address: IBO OSAKA, Rinku-Orai Tower Building, Kita-1, Rinku, Izumisano City, Osaka Japan.-APP DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010524 ------------------------------------------------------------------- Foreign investment banks role restricted ------------------------------------------------------------------- Khaleeq Kiani ISLAMABAD, May 23: The government has decided to restrict international investment banks from winning multiple contracts of financial or technical advisory service in the privatization of state-owned entrepreneurs (SOEs). Official sources told Dawn that a decision to this effect was taken by the Privatization Commission Board (PCB) recently to avoid monopolistic role of foreign banks in privatization transactions. An official at the Privatization Commission (PC), however, said that it was decided "to exclude, or make very difficult, the possibility of the same investment bank winning multiple contracts". It has also been decided that a private sector member of the PCB should be included regularly in the in-house evaluation committee of PC for the selection of a financial advisor. Pakistan is pursuing, though very slowly, the sale of around 50 SOEs, including mega transactions like Pakistan State Oil (PSO), Pakistan Telecommunication Company Limited (PTCL), Oil and Gas Development Company Limited (OGDCL), Pakistan International Airlines (PIA), besides electricity and gas utilities, banks and financial institutions. The decision has come in the wake of past experience that staffing constraints make it difficult for a single firm or investment bank to carry out three major transactions in one country in a good manner. Moreover, difficulties with the firm in one transaction could spill over into other companies as well that could result in increased risk exposure of the Pakistan government. The sources said that in financial proposals, focus would be on reducing the retainer fee instead of success fee by attaching a higher weight to the retainer fee so that success fee emerged as an incentive to fetch better price. In technical proposal, weight on firm qualifications has been increased and weight for team qualifications reduced. It has also been decided that focus should be made on experience of the investment bank in the region and sector while evaluating investment banks that is now considered more relevant than the worldwide experience in view of the fact that a bank might have done a good job worldwide but had no experience in the relevant sector or other parts of the region. In the final scoring for the combined technical and financial proposal, weight for technical proposal has been reduced to 80 per cent from 90 per cent, while simultaneously ensuring that the technical scores are recalibrated so that the highest technical score - like the highest financial score - is 100. Initially, the commission has been assigning 80 per cent weight to technical proposal and 20 per cent to the financial bids. Of late, the procedure was changed to give 90 per cent weight to technical proposals and 10 per cent to financial bids. This included 25 per cent points for specific firm or consortium's experience relating to the assignment, 25 per cent for adequacy of work plan and methodology, 40 per cent for qualification and competence of key staff, 10 per cent for qualification and competence of the project leader. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010524 ------------------------------------------------------------------- Mari Gas Field shareholders rate of return hiked ------------------------------------------------------------------- Reporter KARACHI, May 23: The Economic Coordination Committee (ECC) of Cabinet has allowed Mari Gas Company Limited a 30 per cent Rate of Return on shareholders' funds, up from the current 22.5 per cent, and the company has also been permitted to generate $20 million per annum for exploration outside the Mari Gas Field. The development comes as two pieces of good news for the shareholders in Mari Gas Company Limited, who had resigned to a Return of 22.5 per cent ever since the company was listed on the stock exchange in 1994. Wednesday's trading saw the share in Mari Gas gain 25 paisa to close at Rs 20.85. Mari Gas Company Limited is the main supplier of gas to five plants of the three fertilizers companies and Wapda's thermal power unit at Guddu. Pakistan ranks sixth largest producer of urea in the world. And 70 per cent of all urea produced in the country, uses gas supplied from the Mari Gas Field. The company has been operating under the Gas Price Agreement (GPA) signed with the government, whereby it is allowed a fixed rate of return on shareholders' equity, irrespective of the amount of profit it generates. With the enhancement in Rate of Return, shareholders would receive 30 per cent dividend, effective July 1, 2001, instead of the 22.5 per cent. Also, the company can generate exploration funds up to $20 million or 30 per cent of the company's total revenue, whichever is less per annum, under the GPA. Such funds could be invested for exploration activities outside Mari Gas Field. The Company Secretary Khurram Khan said that various options were being explored to apply for independent blocks or seek joint venture partnership with the existing concession holders. "The long-term strategy would be a combination of both these options", he affirmed. Mari Gas Field boasts the largest single gas reservoir in the country. Presently, gas production only comes from the upper (Habib Rahi) reservoir, which began in 1967. Two exploratory wells were drilled in 1997-98 and the effort resulted in discovery of a new and independent reservoir in Goru B formation of Mari Gas Field. The composition of the newly discovered gas was believed to be suited best for power generation, a happy augury for the country, which seeks to substitute expensive and imported furnace oil, with indigenous gas, for power generation. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010525 ------------------------------------------------------------------- Government meets bank borrowing target ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, May 24: The government has met the target set for its net borrowing from banks two months before the end of the fiscal year and fiscal managers say chances for a reversal in the trend are slim. Senior bankers said net government bank borrowing that stood at Rs18 billion at the end of the first week of April totalled minus Rs18 billion by the end of the month. In other words the government retired Rs36 billion of net bank credit within three weeks. Under the $596 million IMF standby credit programme the government is to keep its net bank borrowing at Rs14.5 billion at the end of the current fiscal year in June. Bankers said gross bank borrowing in the first 10 months of this fiscal year stood at Rs48 billion but since the government placed Rs66 billion in its special debt repayment account its net bank borrowing fell to minus Rs18 billion by end of April. Bankers say what has helped the government cut its net bank borrowing is mobilization of about Rs42 billion through sale of long-term Pakistan Investment Bonds a large chunk of which forms non-bank credit. It is yet to be seen if the government can keep its net bank borrowing within the target level of minus Rs14.5 billion by end of June but fiscal managers claim the government can do it. What brightens this chance is the fact that the government will have at least one more opportunity to raise non-bank debt through PIBs next month. Bankers believe the government will be able to sell a substantial amount of these bonds to non-bank sector next month. Their optimism is based on the fact that in June the State Bank will sell 10-year PIBs that are most attractive for the non-bank sector. Earlier this month the central bank had sold three-year and five-year PIBs that received poor response as the corporates wanted to shift pension and provident funds of their employees invested in defence saving certificates of 10 years maturity to PIBs of the same maturity. Much would also depend on the government's ability to collect tax revenue. The tax revenue target set under the IMF programme is Rs417 billion for this fiscal year: In the first 10 months the government has collected Rs306 billion and the target seems bound to be missed. If the slippage in the target is big and the government fails to seek relaxation in the target from the IMF then its ability to keep net bank borrowing at minus Rs14.5 billion may come under question. This scenario may become more likely if investment in national saving schemes fall further - or if the government fails to sell a substantial amount of its long term investment bonds to non-bank sector next month. Investment in national saving schemes has been on the fall for two reasons: First the government banned institutional investment in these schemes in April last year and second it has started pruning the rates of return on instruments of national saving to make them market-based on the demand of the IMF. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010523 ------------------------------------------------------------------- Rupee falls to lifetime low ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, May 22: The rupee on Tuesday fell to its lifetime low at 62.12/62.17 to a US dollar in inter-bank market as some banks started buying greenbacks to make corporate debt payments and to open import letters of credit. Senior bankers said the buying euphoria was so acute that for some time the rupee fell to 62.20 to a dollar but at the close of normal trading session it finished at 62.10/62.15 for spot buying and selling. On Monday the rupee had closed at 61.90 to a dollar - also an all time low in inter-bank market against the weekend close of 61.73/61.78. In other words the local currency has shed 39 paisa to a US dollar in inter-bank market within first two days of this week. In the open currency market the rupee closed at 65.10/65.15 against US dollar on Tuesday down from 64.90/64.80 on Monday. At the end of last week the rupee had finished at 64.55/64.65 to a US dollar in open market. Thus in the open market the local currency has shed 50 paisa in the first two days of this week. So far during this fiscal year the rupee has depreciated by more than 17 per cent in inter-bank market amidst a gradual opening up of foreign exchange market on the demand of the IMF. WHAT IS WEAKENING THE RUPEE: Senior bankers say the demand for dollar is growing in the inter-bank market amidst low supplies. They say in the first two days of the week the market has seen an outflow of about $40 million through private and official debt payments; oil import bills and outward remittances by portfolio investors and others. This has happened amidst slow realization of export proceeds and in the absence of any financial help from international financial institutions. Some bankers say the State Bank has shifted larger parts of oil import bills onto the market but central bankers are reluctant to verify or deny this statement. Under an agreement with the IMF in connection with its $596 million standby credit programme the State Bank is supposed to stop providing foreign exchange for oil import bills by the end of the current fiscal year in June. OPEN MARKET PROBLEMS: Until March this year the State Bank was purchasing dollars from the open market to fill in the gaps in the balance of payment. But then it stopped this practice and asked state-run National Bank to buy foreign exchange from money changers and convert the same in dollars in Dubai. Sources close to SBP say they were expecting that NBP would buy at least up to $500 million in the current quarter but so far it has bought only about $100 million. It is obvious that National Bank would not be able to meet the buying target anyway. This shortage is also telling upon the exchange rates movement in inter-bank market. Lower than targeted purchase of foreign exchange from open currency market makes it difficult for SBP to meet the rising demand for dollars. Hence the rupee depreciation. RUPEE'S FALL IN KERB: Currency dealers say what is weakening the rupee in kerb is that since the supply of dollar has dried up in the market. "There has not been any supply for the past one month. People are only buying dollars," said president of Forex Association of Pakistan Malik Bostan. Exactly a month ago money changers were stopped from carrying foreign currencies to Dubai for conversion into dollars and NBP had taken up the responsibility. But during the first one month of its operation NBP only bought foreign currencies from money changers and did not sell them dollars. "This has left Forex Association of Pakistan with no weapon to fight against speculators who are out to buy dollars. Previously when we are allowed to bring in dollars from Dubai we were able to intervene in the market," said Bostan.Back to the top
EDITORIALS & FEATURES 20010520 ------------------------------------------------------------------- The Kidney Centre - denationalization ------------------------------------------------------------------- Ardeshir Cowasjee Anyone writing about facts and figures must check and double check and this is best done at the source of the required information. For a writer to write, he must be able to get to the source and the source must be available and co-operative. In the case of the Pakistani press, all government sources of information tend towards the belligerent, the bellicose, as not only do they have much to hide, not only do they fudge and fiddle, but they are naturally highly suspicious of the motives of the writer. Their confirmed belief is that the revelation of facts is contrary to the national interest, that it is somehow bound up with a personal interest, and that facts are per se strictly confidential, if not top secret. Experience has shown that such is the case when checking with our military government and its officers. During the past two months twice I have been accused of blackmail, twice I have been directly called a blackmailer when attempting to establish facts - once by a retired lt-general and once by a retired brigadier. Our military officers are not conversant with the meaning of the words 'blackmail' or 'blackmailer'. Since they are likely to mess us up till Kingdom come, it is strongly recommended that they are all taught right from the start - from Kakul down to the Staff College and the National Defence College - how and when, how not and when not to use the two words or their derivatives. To the credit of our army officers, it must be said that when presented with a copy of the meaning of the word as defined on page 250 of Volume II of the XX volume set of the second edition of the Oxford English Dictionary published in 1989 they have immediately simmered down and apologized as best as they could, considering how and what they have been taught. Now to the letter emanating from the information department of the government of Sindh, printed in this newspaper on May 16, responding to my column of May 13. This provincial department, like its parent ministry at the centre, is redundant. It informs the people on the basis of the maxim: If you cannot convince, confuse. This maxim has been a guiding light of our government 'information' people since 1948. The letter of May 16 referred to "The spokesman, health department, government of Sindh" who had provided a handout to the information department which they had forwarded to be published in toto. I have been trying to locate the 'spokesman' for the past three days, unsuccessfully. The 'spokesman' defended the government of Sindh's nationalization of the Kidney Centre on the basis of what was discussed at, and has been recorded in the minutes of a meeting of the board of governors held on January 24,1996. The board had approved an approach to the provincial government in connection with the establishment at the Kidney Centre of a 'Postgraduate Centre for Nephrology and Urology.' A preliminary charter of the postgraduate centre was drafted, the first paragraph of which reads : Short title. The Centre may be called The Postgraduate Centre for Nephrology and Urology of The Kidney Centre. The Board never intended, nor resolved, that the Kidney Centre should cease to exist or be reconstituted and reorganised in accordance with the nationalization notification of Ordinance No.XI of 2001, dated February 10,2001, which reads : The following Ordinance made by the Governor of Sindh hereby published for general information : The Dorab Patel Postgraduate Training Institute for Nephrology and Urology, Ordinance 2001. Sindh Ordinance No.XI of 2001. An Ordinance to reconstitute and reorganize The Kidney Centre, Karachi. The 'spokesman' in his letter stated : It is believed the original draft [of the ordinance] was prepared by the late Justice Dorab Patel. This is absolutely incorrect. Who led him to so believe ? He went on to say, "The Provincial Health Minister has never held a press conference on the issue of Kidney Centre." May I refer him to a news report by Sarafaraz Ahmad on page 3 of the Metropolitan section of Dawn of April 142001 under the heading 'Government yields to pressure - Kidney Centre deprived of PG status.' Reportedly, The Sindh Health Minister, Maj-Gen Ahsan Ahmad (Retd), announced that the provincial government had decided to withdraw the Ordinance. To whom did the Health Minister address himself, announce, state, etc, if not to the press? The 'spokesman' misquoted Mr Razak Taba. Anyone who has any doubts why Mr Taba withdrew his offer of a donation of Rs.75 million to the Jinnah Hospital may ask him directly, or refer themselves to Dr Rashid Jooma, whose letter mentioning this withdrawl was published in this newspaper on May 6 2001. Which donors, which board of governors of a well-run solvent institution would choose to hand it over to a government and its chosen functionaries, all so reputedly gifted in the art of misgovernance and destruction? Ordinance XI does this. I reproduce an extract from letter No.SO-V(ME)/3-73/2000 dated 1/3/01 from the additional secretary (Tech.), health department, government of Sindh, to the administrator, Dorab Patel Training Institute for Nephrology and Urology. [The administrator was appointed by the ousted BoG of the Kidney Centre. Similar letters were sent at the beginning of April and May.] "The Governor of Sindh has been pleased to pass the following orders : (i) All salaries and allowances payable to persons in the employment of The Kidney Centre on 1st March 2001, as are detailed in the report shall be paid to such employees in the usual manner. (ii) All payments required to be made to suppliers to the Kidney Centre which are or will become due on or before 1st March, 2001 and are detailed in the report shall be paid as soon as possible after falling due. (iii) All other payments which are, or become due, from the Kidney Centre to any third parties on or before 1st March, 2001 and are detailed in the report shall be paid as soon as possible after falling due. (iv) Any funds which need to be withdrawn from the funds of the Kidney Centre and any cheque which needs to be signed and issued shall be withdrawn, signed and/or issued by the joint signature of any two of the persons authorized to operate the accounts of the Kidney Centre as on the day immediately preceding the entry into force of the Ordinance. This is the way the government runs the affairs of the Institute pending denationalisation, the Board having been removed. Trying to explain to me last week how the ordinance had come about, Shahid Firoz, Vice Chairman of the Economic Development Council, termed it a mishap. It had been brought about through a misunderstanding, a misconception, the misreporting of facts, a communication gap, and so on and so forth. He later faxed to me a note : The government of Sindh is pro-actively pursuing a policy of private sector participation in its quest of good governance and efficient service delivery. The creation of the Economic Development Council is a milestone in this context. "As a consequence of its mandate, the EDC is soliciting interest from the private sector to enable a phased denationalization of over one hundred schools and hospitals, in addition to empowering the private sector to maintain and upgrade playgrouds, parks, and the like. These acts of denationalization/ divestment will be on the basis of appropriate legal agreements which will constitute the basis of the relationship between the government and the potential representatives of the community such as to ensure a transparent and effective functioning of the institutions concerned and to assure certain levels of service delivery to the citizens. The regulatory framework for this is in an advanced stage of development." Under the present circumstances which private sector man will show interest ? On May 15, Governor Mohammadmian of Sindh called a meeting of the members of the removed board of governors, men of the ministry and other government officials - a gathering of the damaged and the damagers. The former members were asked to submit a draft of an amending ordinance. On May 17, the former chairman of the board, Mian Muhammad Rafi, wrote to the Sindh health minister, copying the Governor : "With reference to our meeting held at the Governor's House on May 15, 2001, as required by the minister of health we are submitting the amendment to Sindh Ordinance XI of 2001 for notification. On May 17, Dr Jafar Naqvi, who had left the Kidney Centre, vowing never to return, returned to his office. Not the end of the story. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010525 ------------------------------------------------------------------- You don't shoot admirals, do you? ------------------------------------------------------------------- Ayaz Amir THE air of triumphalism attendant upon the extradition of Grand Admiral Mansurul Haq deserves to be kept in perspective. The Grand Admiral was an enterprising person. Of that there can be little question. What heights would he not have scaled in corporate finance? This is just one example, albeit a telling one, of how we mix priorities in Pakistan. The Grand Admiral should have been head of the State Bank or an investment corporation. And Amer Lodhi, reputedly the chief whip in the Agosta submarine deal, should have headed the navy. Since Pakistani lawyers are not famous for being choosy in these matters, it should come as no surprise to anyone if Amer Lodhi has been taken on by Mr S. M. Zafar as a client. On his behalf Mr Zafar, as eminent and expensive a lawyer as they come, has issued a plaintive statement disclaiming any Lodhi connection with arms procurement. The rewriting of memory is one of Pakistan's most thriving industries. Scams and disasters that would cause upheavals elsewhere scarcely cause a ripple on the calm surface of our national waters. That all responsibility is denied is understandable. But we go one step further and deny the very existence of the performances enacted, or the calamities staged. Next to memory-fixing the most productive industry is the laundering of reputations. In this dry-cleaning business the dirtiest linen comes out clean. The National Accountability Bureau is nailing people for misdemeanours, small or breath-taking. Otherwise who is guilty in Pakistan? Not Benazir, Zardari, Nawaz Sharif, Saifur Rehman, Ukraine tank dealers, Agosta submarine commission agents, second-hand Mirage handlers, high-flying bankers, hospitality-purveying industrialists or entrepreneurs whose abilities would leave even fiction writers amazed. What's so surprising then if Mr S. M. Zafar claims innocence on behalf of Amer Lodhi, a gent whose enterprising abilities get a tell-tale reference in newspapers every now and then? In fact, what scope is there for surprises of any kind in a land where defeated generals (remember Niazi) have the gall to make tall claims in public? Where generals who deserted their commands (remember Rahim?) could rise to further heights of fame and glory? The army is now building an Army Heritage Museum in Ayub Park, Rawalpindi. True to its hallowed traditions, GHQ has not been able to resist the temptation of acquiring (a softer name for taking over) what remained of the much-abused acres of the Ayub National Park. Once a serene piece of woodland, it has been turned over the years into a visible symbol of the horrors we are capable of inflicting on pristine nature in the name of theme parks and development. What will the Army Heritage Museum house? What imaginary victories celebrate? The memory of which conquistadors - Ayub, Yahya, Zia - preserve? What ghosts, it is worth asking, will keep vigil in its sacred grounds? Military architecture, especially as resurrected in Pakistan, can have a more pulverising effect on the mind than the heaviest artillery. Look at some of the old British army messes - Baloch and Pilfers in Abbottabad, to mention only two out of a long line - and then take a look at the Armoured Corps mess just outside GHQ's pearly gates and the meaning of this distinction become clearer. The first are examples of proportion and spartan restraint, the second a second-rate architect's idea of a Roman building. As a patriot and ex-soldier (although admittedly a poor one) I am constrained to accept on trust the army's ambition to build a brave new world. But I would the more readily be convinced of its ability to master cosmic themes if it could first demonstrate its expertise in smaller things. To someone who fumbles with a tyre puncture, would you entrust the refitting of your engine? But I began with the Grand Admiral and have meandered down a different (if somewhat related) path. The important thing to remember is that the admiral is no flash in the pan, no lone ranger, but a representative, even if a bold one, of a tribal order which has held the country in its clutches for the past 50 years. The Grand Admiral's real fault, and for which he should be penalized, is that he made his money in too audacious a manner. Otherwise, there is no shortage of others like him who have created adequate pension funds for their declining years. Come to think of it, even for his audacity the admiral is scarcely to blame because he operated in the times of Asif Zardari and Benazir's principal secretary, Ahmad Sadik (the last built like Falstaff and like him in several other ways), when the only game worth playing in Islamabad was to make money in the grand manner. The example set at the top encouraged others to follow suit. For every unsuspecting person caught there must be at least a score of other high-flyers still laughing at the people of Pakistan. Indeed Mansur and Sadik were kinsmen and it was through Sadik that Mansur became Grand Admiral. A favour was done him and he returned it in kind. Favour for favour: that's how it happens. And if anyone thinks that in a billion-dollar deal, which is what our Agosta submarines are worth, it was only the admiral who benefited, he is living in a world of his own. Mansur made his pile and others made theirs. Everyone had a good time. As I say, the admiral went about it too fast. He was also silly into the bargain. Imagine being picked up by federal agents in Austin, Texas. Didn't he know he could be extradited to Pakistan? There are Americans (ask Denise Rich's husband whom Clinton pardoned as one of his last acts in the White House) who are wanted in the US but who have no problem staying one step ahead of the law. Even Ronald Biggs, the great train robber, was smarter and until his money ran out had no problem staying in Brazil, safely out of the reach of Scotland Yard. Or take Amer Lodhi. He has friends in the US but as Mr S M Zafar informs us, he is a citizen of Monaco. You can't get any smarter than this. And here's one of our former navy chiefs, someone who might have been credited with greater sense, making a mistake any small-time crook would have avoided. Even so, let us not lose sight of perspective. In the cesspool that is Pakistan's defence procurement system the tainted fish are so many that counting them is an impossible task. What contributed more than anything else to this state of affairs was our holy war in Afghanistan. With American dollars and Saudi riyals freely pouring in, fortunes were made and a whole new class of entrepreneurs came into existence. Islamabad was no better than a hick-town previously. All the gleaming villas you see in the outer sectors came up during that golden period. Now everyone is moaning and pulling a long face because of the economic downturn. The economy was buoyant while the good times lasted. With the end of the American involvement in Afghanistan the dollars stopped coming, international donors got stingy and we were left to our own devices. Since we have always lived on external largesse there was only one direction the economy could go: down. Then of course we had to be carried away by our exuberance and test our nuclear bombs. That really did it for us. Since then we are trying to recover our balance. All we are managing in the process is to raise gas, utility and fuel prices every few months. The nabbing of the Grand Admiral is a useful piece of theatre. It is a sop to the mentality of the Pakistani mob (another name for the people) which, forgetting its misery for a while, will be led to believe that the walls of Jericho are tumbling and the great are being called to account. That line from Faiz that crowns will roll in the dust - sung beautifully by Iqbal Bano - is not a call to arms. For those on the wrong side of the tracks it is a cup of consolation. In Christian doctrine it is the meek who are supposed to inherit the earth. In communism's heyday the romanticism of the times was typified by poets like Faiz (and Neruda) although Stalin who dealt with power and not poetry had a better appreciation of reality than many of the poets on whom he conferred Orders of Lenin. The fog of political metaphysics Stalin was wont to cut through by asking such simple questions as: how many divisions does the Pope have? But theatre apart, I am sure there is also a more positive side to the admiral's fall from grace. Others will be more careful, if not entirely virtuous, in future. Money-taking will not stop but at least those doing the taking will look out of the window before counting their money. Let us not forget that across the world vice inspectors, and other purveyors of morality, get alarmed when street-walking comes into the open and spreads to respectable areas. It is not street-walking they object to but its open and brazen display. Money-taking in Pakistan had become too open. It will now go back into the shadows, which is where in any well-ordered society it rightfully belongs. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010526 ------------------------------------------------------------------- A question of image ------------------------------------------------------------------- Irfan Husain POLLY TOYNBEE, the Guardian's columnist, is at the forefront of liberal causes in the UK: day in and day out, she hammers the government and right-wing politicians for showing any sign of bias against any underprivileged community. And yet she proudly labels herself an "Islamophobe". Fiercely anti- racist, she sees no contradiction between defending Asians and Africans in the UK - many of whom are practicing Muslims - and rejecting their faith. She bases her views on the general perception of Islam in the West as an aggressive and intolerant religion that marginalizes women and religious minorities. If a liberal, well-educated and highly articulate person like Ms Toynbee can hold such views about Islam, it is easy to imagine how the average westerner looks at it. Just as most of us make little effort to understand the essence of other faiths (or, indeed, our own), ordinary Europeans and Americans gain their knowledge not through original texts but media sound bites and images. And these are highly damaging to Muslims, consisting as they mostly do of bearded fundamentalists carrying Kalashnikovs; newspaper reports of fathers forcing their daughters to marry men against their will; and women being forced to cover themselves from head to foot. In brief, Muslims are seen as violent and intolerant, and by implication, their faith is seen as the root cause for this backwardness. We may protest all we like, pointing to the tolerance and equality preached by Islam, and to the great cultural flowering it encouraged in its earlier days. The unpleasant fact is that because of a relatively tiny minority of the billion or so Muslims around the world, the entire ummah has been tarnished by the same brush. Indeed, the Taliban have done more than any other group to ruin the image of Islam. Their latest decision to make Hindus display yellow marks smacks of the Nazi policy of forcing Jews to wear the Star of David on their clothes. And their recent destruction of the great Buddha statues in Bamiyan reminded us that their stone-age practices have more to do with tribalism than Islam. But whatever their motivation, they claim to act in the name of their faith, and so in the eyes of the West, they represent one aspect of Islam, never mind that most Muslims all over the world abhor and reject their policies and behavior. Against this backdrop of ill-informed condemnation of a faith and its followers, it is easy to understand western apathy over the institutionalized repression of (largely Muslim) Palestinians by Israel and of Chechens by the Russian government. In the western psyche, Muslims are generally lumped together and seen as fundamentalists, and the next step to the terrorist label is a short one. This composite image inspires both fear and loathing. And yet secular Muslim countries like Turkey, Egypt, Tunisia and Morocco continue to attract millions of tourists and billions of dollars. The citizens of these countries are just as devout Muslims as in the rest of the Islamic world, but are seen as moderates, and not as threatening, totally alien figures. The point here is that in a shrinking world, you cannot simultaneously try and attract western capital and technology while cursing the West and despising its values. Mutual respect and tolerance only come through the acceptance of other points of view and modes of behavior. Unfortunately, many Muslims who have decided to make their homes in the West have chosen to alienate themselves from the mainstream, living in self- created ghettos of the mind. While they accept and enjoy the many advantages of living in the West, they fiercely reject any moves to integrate themselves into the society and cultural milieu they live in. Many members of the younger generation of Muslims in the West inhabit a twilight zone in between their parents' mental world and the real world around them. A small minority of them have turned to a particularly militant brand of fundamentalism that alienates them further from society. These extremists reinforce the negative image of their religion, except in their case, the perceived terrorists are not some distant Taliban; they have infiltrated into the heart of the western world. So it should not surprise us when a terrorist outrage occurs in the West, and Muslims are the first to be suspected. This stereotyping is obviously harmful and hurtful to the vast majority of peaceful, law-abiding Muslims who just want to get on with their lives. In a sense, a small minority of extremists is holding the majority of believers hostage. There is a tendency to react to media stereotyping with anger and defiance, justifying what this handful of zealots is doing by blaming the West for not intervening when Muslims are clearly the targets of oppression from Kashmir to Palestine to Bosnia. But this is a chicken and egg situation: Americans and Europeans are largely indifferent as they cannot empathize with people who seem so alien. Public opinion is more sympathetic to nations westerners can identify with more readily. In world affairs, there is no such thing as objective truth, and expecting foreigners with little interest in the legalities of international affairs to side with us is expecting too much of human nature. The fact is that like it or not, it is the West that currently calls the shots in global finance, technology and diplomacy. Most Muslim countries today are in various stages of underdevelopment, and therefore require substantial financial and technical assistance from the West. And here in lies the rub: can these same countries (or a handful of their citizens) simultaneously afford to alienate Europeans and Americans by adopting a confrontationist posture? Or to use General Aslam Beg's fatuous but memorable phrase, can the Muslim world maintain an attitude of "strategic defiance"? The Chinese, ever pragmatic, have courted overseas investments on a huge scale, sending their GDP soaring, and have been trading furiously with the West, accumulating enormous surpluses. They see the strategic advantage of cooperating with the West to strengthen their country, even though they have major ideological differences with the countries they are doing business with. Many Muslim thinkers and politicians, on the other hand, continue to fight ancient battles. Incapable of logical thought and rational action, they prefer to live in the past. In doing so, they are dragging the rest of the Muslim world down with them. If we are to develop and compete economically with the rest of the world, we need to break out of the shackles of history we have placed on ourselves.
SPORTS 20010523 ------------------------------------------------------------------- India agrees to send team to Pakistan ------------------------------------------------------------------- Monitoring Desk KARACHI, May 22: The Indian cricket board on Tuesday said the national team will face no obstacles in touring Pakistan for next year's Asia Cup and the Asian Test Championship. Board of Control for Cricket in India (BCCI) president A.C. Muthiah said the government's guidelines were clear and that the team will not be stopped from competing in multination competitions. "The sports ministry has clearly said that there will be no bar on the Indian team participating in any multination tournament wherever it is played," Muthiah said. Muthiah was speaking before his departure later Tuesday for Lahore, Pakistan, where the Asian Cricket Council will meet Thursday to decide the schedule for the Asia Cup limited-overs tournament and the Asian Test championship. Pakistan will host next year's Asia Cup and also its Asian Test championship fixture against India. The Asian Test championship's matches are spread all over the subcontinent and played alternatively on a home and away basis. India played host to Pakistan in Kolkata during the inaugural Asian Test championship in 1999. "I don't see any problem in our cricketers touring Pakistan for these competitions," Muthiah said. "Even the ban on playing Pakistan is for a bilateral series." Government's clearance is mandatory in India for any international sports event - at home or abroad. The government stopped its cricket team from playing a Test series in Pakistan last year and has denied permission for a five-match one-day series against Pakistan in Toronto, Canada, for two successive years. Sports Minister Uma Bharti last month said that the Indian cricket team will not play Pakistan as a matter of national sentiment. "The government is very, very firm not to have bilateral cricket matches against Pakistan in the prevailing circumstances," Bharti said. "Cricket has come to represent the national sentiment." But she left the door open for India to play Pakistan in cricket, if it were unavoidable, as a part of a multination event - as opposed to head-to-head series The government last month also banned its cricket team from playing in three "non-regular" venues - Toronto, Canada, Singapore and Sharjah, United Arab Emirates - for three years. Muthiah said the government's guidelines also permit Pakistan's cricket team from touring India for the ICC Cup - which India is bidding to host next year. The decision on the ICC Cup venue will be taken at the International Cricket Council's annual meeting in London next month. TWI to sponsor Indians India's cricket chiefs earned a 49 percent hike for the sponsorship of the national team under a new agreement signed with TWI, reports AFP TWI won a three-year deal with the Board of Control for Cricket in India (BCCI) to sponsor both the team and a limited-overs domestic tournament, officials said. TWI has guaranteed sponsorship of $108,000 for each Test match and $87,000 for each One-day International the Indian team plays over the next three years, BCCI president A.C. Muthiah said. It will also pay $218,000 a year to the BCCI to conduct a limited- overs domestic tournament. Last sponsors, the Indian Tobacco Company, paid $55,000 for each Test match and $45,000 for a One-day International. The new contract will come into force in July when the Indian team tours Sri Lanka for three Tests and a limited-overs triangular series also featuring New Zealand, Muthiah said. The BCCI is also working on a graded system of payment for cricketers based on seniority, Muthiah added. DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010521 ------------------------------------------------------------------- Waqar's men disgraced at Lord's ------------------------------------------------------------------- LONDON, May 20: England routed Pakistan by an innings and nine runs in the first Test on Sunday with an inspired display of pace bowling from Darren Gough and Andrew Caddick. Sixteen Pakistan wickets fell on a dramatic fourth day of the rain-affected match as the touring team, forced to follow-on 188 behind after being bowled out for 203, were skittled for 179 in their second innings, sparking a joyful pitch invasion by the Lord's crowd. Man-of-the-Match Caddick, finding swing and seam movement throughout, ended with match figures of eight for 106 while Gough had eight for 101, England effectively wrapping up the game in three days after the first day was rained off. In the process, Gough became only the eighth Englishman to pass 200 Test wickets. He stole the limelight in the morning by enforcing the follow-on with three wickets in four balls as Waqar Younis's side, resuming on 115 for four in reply to England's first innings of 391, fell 39 runs short of their target. The honour of the final wicket of the match fell to seamer Dominic Cork, who punched the air as Waqar was caught behind off a lifter. England, seeking their fifth series success in a row, sealed their victory without captain Nasser Hussain, who was ruled out of the rest of the rubber on Saturday after breaking his right thumb while batting. The second and final Test starts at Old Trafford on May 31. Few had expected the chance of a result after the first day was washed out by rain. Pakistan, however, who had won the toss but failed to exploit the seamer-friendly conditions, proceeded to lose their last six first-innings wickets for 88 on Sunday morning. The only real resistance had come from Younis Khan's 58 before Gough's dramatic intervention. The Yorkshireman claimed his 200th Test victim when wicket-keeper Rashid Latif was caught behind down the leg side with his final delivery before lunch. Waqar survived Gough's next delivery but then carved a sharp catch to Graham Thorpe at third slip. Number 11 Shoaib Akhtar followed immediately, bowled for a golden duck. The Yorkshire pace bowler, who finished with his first five-wicket haul at Lord's by taking five for 61, flung both his arms in the air before being mobbed by his team mates. His first ball of the second innings - a hat trick delivery - rapped Saeed Anwar on the pads on the way down the leg side before Caddick, who took four for 52 in the first innings, dealt a double blow. Saleem Elahi completed a pair as Thorpe went full-length at third slip to take a stunning one-handed catch, one of several pieces of fine fielding by the home side. The Caddick-Thorpe combination then took care of Anwar for eight before Cork got in on the act. He removed Inzamam for 20, wicket- keeper Stewart taking the ball one handed down the leg side as the batsman stared back at umpire Peter Willey in disbelief over the decision. Yousuf Youhana then chipped a Gough delivery straight in to Michael Vaughan's hands at short mid-wicket to herald the tea interval, and soon afterwards Younis was adjudged leg before, off an inside edge by Willey, to Cork to make it 87 for five. Abdur Razzaq provided the only resistance this time, with a three- hour 53, including nine fours, before he was caught at first slip off Caddick. Fellow all-rounder Azhar Mahmood was next to go, caught behind off Caddick from a ball that left him, having had a number of escapes while scoring 24. Latif and Waqar resisted for a time but England were not to be denied their win with a day to spare. England's close catching was exemplary throughout, with wicket- keeper Stewart holding seven catches and the slips taking another eight, four of them by Thorpe. Stewart was in charge as England surged to success, skipper Nasser Hussain having been ruled out of the rest of the two-Test series on Saturday after breaking his right thumb while batting. -Reuters DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS*DWS 20010525 ------------------------------------------------------------------- Waqar claims hat trick to rout Leicester ------------------------------------------------------------------- LEICESTER (England), May 24: Pakistan captain Waqar Younis took a hat trick as the tourists bowled out Leicester for 96 on the first day of their four-day tour match here Wednesday. Waqar finished with five for 23 while long time pace partner Wasim Akram took four for 19 as Pakistan warmed up for next week's Second Test against England at Old Trafford. At the close Pakistan were 201-3, Faisal Iqbal, the nephew of Javed Miandad, 81 not out and Yousuf Youhana 38 not out, a lead of 105. Faisal's fifty came off 120 balls. Left-armer Wasim ripped through Leicester's top order, the 34-year- old taking the first four wickets. Then Waqar, bowling himself as first-change, struck in his second over of the day, Neil Burns, former England quick Phil DeFreitas and Omari Banks all out for first-ball noughts. Burns was lbw, DeFreitas, in his first game of the season, was yorked and debutant Banks' off-stump was struck by a ball that moved away from the right-hander. Only Leicestershire's left-handed opener Iain Sutcliffe managed meaningful resistance with 55 from 97 balls, including six fours, before he was last out, Shoaib Akhtar catching a miscued pull to give Abdur Razzaq his only wicket of the innings. The only downside for the tourists to the dominanace of their pace attack was that neither off-spinner Saqlain Mushtaq or leg-spinner Mushtaq Ahmed, both of whom were omitted from the side that lost the first Test by an innings and nine runs at Lord's last week, had much of a chance to get in on the action. -Reuters ------------------------------------------------------------------- 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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