------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 01 June, 2002 Issue : 08/22 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + UN intervention can help prevent war, says Akram + Rumsfeld's visit prompted by troops redeployment + Eastern border to get more troops + Al Qaeda, Taliban plan attacks, says NYT + New Delhi reaction to speech regretted + No infiltration across border, says Musharraf + Series of missile tests completed + Hataf-III Ghaznavi missile test-fired + Pakistan test-fires Hataf-V + Musharraf says no message thru missile test + Polls to be held from Oct 7-11: We won't initiate war: Musharraf + ARD defers decision to meet president + SHC suspends ATC order in Daniel case + ATC stays release of video showing Pearl's killing + Prosecution seeks time to consult govt + Chenab, Jhelum vulnerable to treaty mischief + PSO official, wife jailed for amassing illegal wealth --------------------------------- BUSINESS & ECONOMY + WB to give $500m on June 12 + IDB to provide $250m for social development + Pak Saudi Fertilizers sold for Rs8 billion + PSEB claims misleading: $130 million MoU + Ex-BEL chief files suit for damages against SBP + Rally falters half way on weekend selling + KSE index recovers another 52 points + Equities recover with full might on optimistic note --------------------------------------- EDITORIALS & FEATURES + Going nowhere Ardeshir Cowasjee + Thank God, no more running Ayaz Amir + A conflict neither side can win Irfan Husain + Giving peace a chance Irfan Husain ----------- SPORTS + FST admits Jehangir Khan's plea against PIA

UN intervention can help prevent war, says Akram
By Masood Haider

UNITED NATIONS, May 31: Underscoring that "war stares us in the
face" Pakistan asked the U.N. Security Council to live up to its
Charter obligations to prevent a threat to international peace and
security posed by India's threat to attack Pakistan.

In a rare address to the wrap up session of the 15 member Security
Council, Pakistan's ambassador to the UN, Munir Akram, said
Council's intervention in averting a war in South Asia "will
brighten the prospects of peace for the present and future
generations; its failure will blight the hopes for universal peace
and prosperity aroused by the march of civilization at the dawn of
the 21st Century."

Reaffirming President Musharraf's pledge that Pakistan would not
initiate a war, Akram said that "we are eager to take the
alternative path to peace. We hope that India will choose it too."
This is a "decisive hour" for the Council, he added.

Akram lamented that so far the Security Council has been unable to
address the most serious current threat by India to attack
Pakistan. India has mobilized most of its massive ground, air and
naval forces in battle-ready formations against Pakistan.

"The Security Council and the UN Secretary-General, and, indeed,
all UN member states, have an obligation flowing from Article 25 of
the UN Charter, to secure the implementation of UN Security Council
resolutions relating to Kashmir, adopted from 1949 to 1998. All the
modalities outlined in Article 33 of the Charter can be mobilized
for this purpose," he stressed.

Saying that India has stoked the war hysteria, Akram said: "We have
been obliged to respond to India's threat. India's prime minister
has threatened a decisive battle against Pakistan. Other Indian
leaders civilian and military have repeatedly threatened punitive
strikes, hot pursuit and other use of force. News reports,
yesterday, indicated that India is mounting warheads on its short
and medium range missiles."

Expressing hope that India will chose the path to peace, Akram
suggested that the United Nations Observer group be strengthened to
monitor the LoC or if India wants "alternatively some other
impartial mechanism" for instance, an adequately manned and
equipped helicopter-borne force "can be accepted by India and
Pakistan to monitor the Loc."

He reiterated Pakistan's assurance that it would not start awar
with India in face of India's provocation "should be accompanied by
the immediate de-escalation and progressive withdrawal of forces by
India which would be matched by Pakistan back to their normal
peacetime locations. Only once such de- escalation and withdrawals
are completed will the threat to peace subside in the

He proposed that "thereafter, further mutual steps could be taken.
On the one hand, to end the repression by Indian forces in occupied
Jammu & Kashmir. On the other, for de-escalation of the Kashmir
freedom struggle and its transit to a purely political process for
the realization of the legitimate aspirations of the Kashmiri

Rumsfeld's visit prompted by troops redeployment
By Qudssia Akhlaque

ISLAMABAD, May 31: United States president's decision to send his
defence secretary, Donald Rumsfeld, to Pakistan is prompted by
reports of Pakistan thinning out troops deployed on its western
borders to check infiltration of Al Qaeda and Taliban members,
informed sources told Dawn on Friday.

President Musharraf made it clear that Pakistan's first priority
was its own security, suggesting that military stand-off between
Indian and Pakistan required troops concentration along the eastern

Sources said President Musharraf's statement that "no one should
grudge" the decision was basically for the consumption of the US
that was apparently concerned about it.

Pakistan has been trying to warn the Americans about its national
security compulsions for the last five months but these remained
unheeded by them," sources said.

The government had last month deployed more than 8,000 troops in
the tribal belt of Waziristan as part of the biggest US anti-terror
operation within the country.

The president informed the US the other day about his decision to
pull back troops engaged in the anti-terror operations on the
western borders to re-deploy them on the eastern borders in view of
a possible attack by India.

When contacted, Inter Services Public Relations Director-General
Maj-Gen Rashid Qureshi said all troops required to seal the
Pakistan-Afghan border continued to be deployed and were performing
the task assigned to them. He said "some additional troops not
involved in the operation" had been moved from there to the eastern
border, where India had amassed its 1.2 million strong army.

The ISPR DG declined to give the number of troops moved to the
eastern borders for "operational security" reasons.

Sources also link Rumsfeld's visit to the region with the US
contingency plan to evacuate its 1,100 troops and some 63,000
American citizens from India and Pakistan in case war breaks out
between them. The plan was confirmed by the White House spokesman.

The ISPR DG and the Foreign Office spokesman, Aziz Ahmed Khan, said
that they had no prior indication of Donald Rumsfield's visit to
Pakistan. Till Friday afternoon nothing at the official level had
been communicated to Pakistan about his visit. "We will let you
know once we have the dates," Aziz Ahmed said on Friday when
queried about the visit.

Asked if Pakistan had decided to call back its forces engaged in
the United Nations peacekeeping operations in Sierra Leone, the
ISPR DG said: "It depends on what happens in the next few days and
then we will take a decision."

Pakistan, currently among the world's four biggest contributors to
UN peacekeeping forces, has a brigade comprising 3,000 troops in
Sierra Leone. Pakistan had committed to dispatch another brigade to
Sierra Leone but last month the UN was officially informed that it
would not be able to do so and would at some point also withdraw
the personnel serving there.

Eastern border to get more troops
Staff Reporter

ISLAMABAD, May 30: President Gen Pervez Musharraf said that
Pakistan was seriously considering withdrawing troops from anti-
terrorist operations on the western borders for their deployment to
eastern borders.

"We have not yet moved the troops but we have actually stalled the
process of inducting them deep on the western borders," President
Musharraf told a press conference.

"For Pakistan the first priority is its own security and nobody
should grudge that," the president said in reply to a question.

Gen Musharraf said that if the tensions with India remained as high
as it was of today then the troops would certainly be moved towards
the eastern borders. If the country's security was endangered and
there was a threat of aggression then all the resource would be
mobilized to face the threat, he said.

He said Pakistan had been pursuing the policy of encouraging any
diplomatic initiative for defusing tensions.

When a reporter asked what message he would like to convey to Prime
Minister Atal Behari Vajpayee, the president said war would cause
destruction on both sides. "Being a soldier, I can understand the
miseries a war would cause." He further said that his message for
the Indian prime minister would be that war should be avoided.

TROOPS MOVED: Pakistan has moved some troops from the western
border to its eastern border with India, adds AFP quoting a
statement issued by the military authorities. "A contingent of
Pakistan troops commenced its movement from the western border to
reinforce Pakistan troops deployed along the eastern border," the
statement said.

The shift was made "in view of the adverse posture of the Indian
armed forces," it added.

Al Qaeda, Taliban plan attacks, says NYT
Staff Correspondent

NEW YORK, May 28: The US intelligence reports indicate that Al
Qaeda and Taliban leaders, now in Pakistan, are plotting terrorist
attacks, including car and suicide bombings, to disrupt the
selection of a national government in Kabul next month, The New
York Times said in a report.

The commander of the US-led forces, Maj-Gen Franklin L. Hagenbeck,
told the paper in an interview that virtually the entire senior
leadership of Al Qaeda and Taliban had been driven out of eastern
Afghanistan. The leadership, he added, was now operating with the
help of some 1,000 non-Afghan fighters in the tribal areas of

"We know that they are there and have a capability to do harm to
this country (Afghanistan)," Gen Hagenbeck said. "Our job is to
deny them the freedom of movement and sanctuary."

He echoed a concern voiced in Washington that tensions between
India and Pakistan could delay Pakistan's military operations in
the tribal areas.

Gen Hagenbeck also said that several recent raids on compounds in
the Tailban's spiritual base in southern Afghanistan had been
intended to break up groups that had been plotting terrorist
attacks against coalition forces and their Afghan allies. However,
the paper said, residents of those villages asserted that the
American forces were mistaken about the presence of terrorist
groups, and said that innocent people had been killed or taken into
custody in the raids.

Gen Hagenbeck would not say whether Pakistan had begun pulling back
troops from the border. But the paper said that he expressed
confidence that President Pervez Musharraf would fulfil a pledge to
eliminate the Al Qaeda and Taliban sanctuaries in the tribal

"I have no concern that they are not going to do what they've said
they will do," Gen Hagenbeck said in his office at this former
Soviet base, now the headquarters for more than 10,000 allied
troops in Afghanistan. "They are interested in ridding western
Pakistan of Al Qaeda. With what is currently going on in India, I
don't know what the timing's going to be."

There have been reports from Pakistan that Osama bin Laden had been
seen in the tribal areas as recently as last month, the paper said.
But Gen Hagenbeck told the Times he had no solid information on the
whereabouts of Osama or Mulla Omar.

New Delhi reaction to speech regretted
ISLAMABAD, May 28: Pakistan said it regretted India's reaction to
President Musharraf's national address which was delivered amid
rising tensions between the nuclear-armed rivals.

"The government of Pakistan regrets the reaction," the foreign
ministry said in a statement after the speech.

Pakistan lashed out at India's rejection of the president's
contention that there was no infiltration of militants across the
Line of Control (LoC), saying New Delhi's comments were "baseless".

"If India is so concerned about the so-called cross-LoC
infiltration, it should accept Pakistan's oft-repeated proposal for
strengthening the (United Nations presence) or posting of
independent observers," it said.

Indian Foreign Minister Jaswant Singh accused President Musharraf
of making nuclear threats in the speech and said his comments were
"disappointing and dangerous" and had added to tensions. However,
the Pakistani foreign ministry accused India of adding to the war
hysteria with its reaction to a series of attacks, including a
bloody assault on its parliament in December.

"Mr Jaswant Singh would do well to remember that the prevailing
tension in Pakistan-Indian relations is a consequence of the many
ill-advised and escalatory steps by the Indian government since
December last year, in particular the massing of forces on
Pakistan's borders," it said.

"The intemperate and shrill statements by its leaders have also
served to heighten tensions between the two countries."-AFP

No infiltration across border, says Musharraf
Staff Correspondent

WASHINGTON, May 27: President Gen Pervez Musharraf declared that
infiltration into held Kashmir had stopped, but demanded a response
from New Delhi, including the renewal of direct talks between the
two countries.

Talking to The Washington Post in Islamabad, Gen Musharraf rejected
criticism that his government had retreated from pledges to crack
down on militants and said: "We will ensure that terrorism does not
go from Pakistan anywhere outside into the world. That is our
stand, and we adhere to it."

The president said he knew "a lot of people are having doubts"
about his commitment to control religious extremism, but told the
Post: "Let me assure you, there is no backtracking."

The interview was published on the same day as President George
Bush, in Paris, asked Gen Musharraf to "show results" and to
"perform" on delivering on his promises to stop what is referred to
as cross-border infiltration.

According to the Post, Gen Musharraf "heatedly accused India of
sponsoring terrorism in Pakistan, bullying its neighbours and
provoking him with inflamed rhetoric. He said India has used
massive border deployments and war threats in recent weeks 'to
destabilize me, my government and Pakistan'. Musharraf threatened
that if war erupted between the nuclear-armed rivals, 'we'll take
the offensive into Indian territory'."

The Post report added: "Gen Musharraf made clear that he was
offering a fresh pledge to end the border crossings, but he
declined to offer specifics, and the language he used was at times
ambiguous. Musharraf used the same words four times during the 45-
minute interview, stressing that 'there is nothing happening across
the Line of Control'."

Asked if the absence of infiltration�s he described had been
achieved through specific decisions made in the last week or two,
he responded: "I repeat: There is nothing happening on the Line of
Control. That is what I would like to repeat. And I would like to
repeat again: Reciprocation is important."

Gen Musharraf said he would not consider "de-escalation alone" by
India along the border an adequate response, demanding in addition
"initiation of (a) dialogue process (and) reduction of atrocities
within Kashmir. And when I say that, on defining it, it really
means that as a first step, the (Indian) military should leave the
towns and cities of Kashmir and be in the outskirts."

The Post says the general rejected criticism that his performance
had not lived up to a pledge made in the Jan 12 speech, in which he
declared that Pakistan's government would no longer tolerate
radicals at home or use them as instruments of foreign policy. He
said Pakistan's commitment to fight terrorism had three components:
its partnership with the United States to battle Al Qaeda and
Taliban forces in Afghanistan and Pakistan, "the issue of cross-
border terrorism" in Kashmir and battles between rival Islamic
sects in Pakistan.

"Musharraf spoke most forcefully about Al Qaeda. 'Pakistan will not
- repeat, will not - allow any foreign mercenaries, militants,
anywhere inside Pakistan, whether they are infiltrating through
Afghanistan or coming from any other place. Whether they are on our
border belt, or in our cities, we will hunt them down'."

On Kashmir, Gen Musharraf defend the cause of the freedom fighters
but cited the attacks on the Indian Parliament complex, the
shooting of civilians in an army camp this month and other similar
incidents as cases where "there were civilians who have been killed
- and I call them terrorist acts. There is no doubt in my mind."
But as to accusations that Pakistanis were involved in these
incidents, he said: "Let's have proof. Let us have evidence."

Gen Musharraf said he told Secretary of State Colin Powell and
other US officials last week that infiltration�s across the Line of
Control had ended, and made the same demands for Indian
reciprocity. He said he also complained about the volume of "chest
thumping that goes on from the other side. Continuously, there is a
jabbing at us, a rhetoric, which is annoying."

Series of missile tests completed
By Faraz Hashmi

ISLAMABAD, May 28: Pakistan completed a series of tests of its
missile systems with the successful test-fire of a short-range
Hatf-II (Abdali) missile.

"We have achieved all our objectives with a series of missile
tests," President's Spokesman Rashid Qureshi told Dawn by phone.

When asked whether all the missile systems have been tested or some
are still in the development stage, Mr Qureshi responded: "All the
missile systems, where were necessary, have been tested."

The president's spokesman, who is also director-general of Inter-
Service Public Relations, did not reply to a question whether these
missiles have also been inducted into the Pakistan army.

"Through induction, different people infer different meanings," he
said. When the similar question was rephrased by this reporter, he
said he was not sure whether these missiles had been handed over to
the Pakistan army. "I will have to check on it," he added.

Commenting on the tests carried out at the height of tension on the
eastern borders, and in the face of intense international pressure
on both the South Asia neighbours for exercising restraint, he
said: "These tests validated the technical parametres of the system
developed by Pakistan."

Mr Qureshi also declined to confirm reports about deployment of
some missiles. "I have no such information," he added.

"As part of a series of missile tests currently under way, Pakistan
today carried out a successful test-fire of its short range
indigenously developed surface-to-surface missile Hatf-II
(Abdali)," an official announcement said. "This was the first test
of the Abdali missile. This system is capable of carrying warheads
accurately up to a range of 180km. The flight data collected
confirmed its accuracy and all other design parametres which were
successfully validated."

Hataf-III Ghaznavi missile test-fired
ISLAMABAD, May 27: Pakistan successfully test fired its newly-
developed short-range surface-to-surface ballistic missile Hataf-
III (Ghaznavi). This was announced by the Inter Services Public
Relations Directorate (ISPR) in a press release. It said: "This was
the first test of the Ghaznavi missile which is capable of carrying
warheads accurately up to a range of 290kms."

According to an ISPR release, chairman Joint Chiefs of Staff
Committee, General Aziz Ahmad Khan told scientists, research
scholars and others after the firing of Ghaznavi missile that the
question of the size of Pakistan had now become meaningless.

Gen Aziz, who was present in the monitoring room with corps
commander Lt-Gen Tariq Waseem Ghazi, describing the technical
details of the test said the missile's take-off was perfect, re-
entry stage was excellent, and target impact was highly accurate.

Chairman JCSC said mere presence of any weapon was not enough, it
was a dedicated team which formed defence deterrence of a country.

The concentration of troops on our borders and coercive attitude of
any power could not frighten the valiant armed forces of Pakistan,
Gen Aziz said.-APP

Pakistan test-fires Hataf-V
By Tariq Saeed Birmani

DERA GHAZI KHAN, May 25: Pakistan successfully conducted a medium-
range ballistic missile test on Saturday near the Dallana tribal
area in Suleman Range, an official monitoring the system told Dawn.

The monitoring station was set up at Basti Jarh, some six
kilometres from here on Dera-Quetta road where the residents were
not allowed to visit.

Hataf-V, loaded with a mock atomic warhead, hit its target in
Balochistan. The technical teams from the Kahuta Research
Laboratory and the National Defense Complex arrived here a couple
of days ago. After the successful test, the team members
distributed sweets among the villagers.

Residents of Basti Jarh, where the monitoring station was set up,
told Dawn that the team, comprising more than 50 officials, set up
the camp some five days ago and it was declared a prohibited zone
even for the people of the area.

The Chairman of Pakistan Atomic Energy Commission had visited the
site some four days ago.

Musharraf says no message thru missile test
By Ahmed Hassan

ISLAMABAD, May 25: President Gen Pervez Musharraf said that
Pakistan successfully test-fired its medium-range missile, adding
that "it was not meant to give any message to anyone".

Speaking at the National Seerat Conference here, the president said
that Pakistan did not want war with India, but was not afraid of it
either, if imposed on it.

Referring to the current stand-off with India, he said the country
was passing through a critical phase. The president, however,
expressed the confidence that the country would overcome the crisis
with success and honour. The president also emphasized the need for
forging unity among the leaders of public opinion and stated that
he was determined to restore democracy by holding fair and free
elections before Oct 12.

Responding to a reported statement that India was not impressed by
missile testing, the president said: "We are also not impressed
either by the reports suggesting that India had given us two months
time to meet its demands to avoid war."

He said no one should underestimate our capability if a war was
imposed on us as the whole world was aware of Pakistan's might.

The president said he was ready to again invite those leaders who
earlier refused his invitation.

The president criticized those writers who write without realizing
the negative impact of their writings on the country. He said such
irresponsible talks did not inflict any personal harm but damage
the country's interests..

He said when the government takes a decision in line with the
national interest it becomes incumbent upon the entire nation to
support and strengthen that decision.

Polls to be held from Oct 7-11: We won't initiate war: Musharraf
By Ihtasham ul Haque

ISLAMABAD, May 27: President Gen Pervez Musharraf announced that
elections to the National and Provincial Assemblies would be held
from Oct 7 to 11 for restoring "genuine democracy" in the country.

Addressing the nation by radio and television, the president
assured that general elections would be held in a fair and free
atmosphere. "It is my commitment with the nation that these
elections will be fair and transparent, and all foreign observers
who intend to witness them are welcome," he said.

The president conceded that "certain irregularities" were committed
in the referendum and apologized for it. He claimed that the youth,
women and business community had supported him. "But I learnt that
some people in their carelessness and ignorance performed some
unworthy acts. If such is the case...(then) I am aggrieved and feel
very sad. I apologize for this. I am particularly sad that my well-
wishers who have always been supportive of me, may have found
something unpleasant."

ARD defers decision to meet president
By Ashraf Mumtaz

LAHORE, May 30: The top leaders of the Alliance for Restoration of
Democracy deferred a decision on their formal response to the fresh
invitation extended to them for a consultative meeting with
President Musharraf, saying they needed more time to get views of
some other opposition parties.

Nawabzada Nasrullah Khan, at whose residence the ARD leaders met to
exchange views on the subject, said that he would contact leaders
of the all-party conference and the Muttahida Majlis-i- Aml before
taking a final decision on the invitation.

According to ARD sources, an alliance leader present in the meeting
called on Information Minister Nisar A. Memon in Islamabad to say
that the government should also discuss opposition's demands along
with the border situation for which purpose the consultative
meeting was called. The leader proposed that a separate session
could be held for the purpose.

Official sources told Dawn that if the ARD wanted to discuss its
demands with the government, it would have to make a request for
the purpose. They said the meeting called by the president was
exclusively for situation on the eastern borders and the way the
government should handle it.

It is said that Mr Memon informed the ARD leaders that the session
scheduled for Friday had been postponed.

Those present at the meeting were PPP Senior Vice-Chairman Makhdoom
Amin Fahim, Punjab PPP President Qasim Zia, Munir Ahmed Khan,
PML(N) leaders Raja Zafarul Haq, Saranjaam Khan, Tehmina Daultana,
Sardar Zulfikar Khosa and Khwaja Saad Rafiq, Istiqlal Party chief
Manzoor Husain Gilani, PML(Q) leader Saifullah Saif and PDP leader
Nawaz Gondal.

SHC suspends ATC order in Daniel case
Staff Reporter

KARACHI, May 30: The prosecution in the Daniel Pearl murder case
frustrated attempts of the four accused to obtain video of the
gruesome incident, when it secured an order from a division bench
of the Sindh High Court to suspend the operation of the order of
the trial court until June 4.

The anti-terrorism appellate bench of the SHC, comprising Justice
Roshan Essani and Justice Sarmad Jalal Osmany, put all respondents
on notice for June 4 when the AG Sindh, Raja Qureshi, moved a
criminal revision application for suspension of Tuesday's order of
the trial judge for providing the video to the counsel for the
accused, but had granted a 72-hour stay to the prosecution.

Raja Qureshi, after emerging from the chambers of Justice Essani,
told reporters that while the application would be decided after
hearing the parties, trial of the four accused would continue on

Apart from Ahmed Umer Saeed Sheikh, Sheikh Mohammad Adil, Syed
Salman Saqib and Fahad Nasim, who are facing trial in Hyderabad
central jail, were made respondents in the application.

Although a lap-top with the video of the murder was taken to the
chambers of Justice Essani by senior officials, the AG said no
visuals were shown.

Defending the state's move, the AG said the prosecution was opposed
to providing the tape to the accused because there were fears that
it may land in wrong hands and could generate terror and add to the
prevailing insecurity and fear in society.

The applicant has claimed that contents of the video reflected a
gruesome murder by way of slaughtering which had not only created
fear in the minds of the public at large, but if viewed would also
create a sense insecurity in the eyes of the general public at
large, nationally and internationally.

"The viewing of the video, reflecting the slaughtering of an
American Jew, Daniel Pearl, would be an instrument of advancing
acts of terrorism internationally, and, therefore, if the same is
released, the same could result in the massacre of Muslims and
religious sects nationally and internationally", the AG had
contended in the application.

He was also opposed to providing the video to the defence because
it was "likely to incite hatred and contempt on religious,
sectarian or ethnic basis, stir up violence and interned
disturbance or is likely to affect the external affairs of

Defence counsel for the four accused claimed they wanted to subject
the video to an expert review.

The video was sent to the US Consulate in Karachi in February after
the Wall Street Journal reporter went missing in January.

A dismembered body, believed to be his remains, was found on May 17
at a derelict place in the outskirts of Karachi along the
Superhighway and DNA tests to confirm its identity were continuing.

The video cassette was sought at the stage when the prosecution
witness had already been subjected to cross- examination on May 16.

It was the contention of the AG that contents of the video
cassette, apart from being extremely sensitive, contained serious
material which was neither in the interest of the prosecution nor
in the interest of the defence.

He claimed that it was "in the national interest to withhold the
release of the video to become a public document, to be viewed by
the members of the public at large, nationally and
internationally", if the same was released to the defence.

It was the case of the prosecution that in case the copy of video
recording was provided to the defence (though the same had already
been viewed on their insistence), and if the same was released at
the fag end of the trial, it was likely to create a serious risk to
safety of the public.

It was the contention of the prosecution that the request of the
counsel for the accused was designed to frighten the general public
and thereby prevent them from coming out and carrying on the lawful
trail in daily business and disturb civil life, if the same was
exhibited from any channels of electronic media.

The revision application was filed under section 435, 561-A, read
with ATA 1997 and Article 199 of the constitution.

The trial at Hyderabad was proceeding pursuant to FIR No. 24/2002,
registered at the Artillery Maidan Police Station Karachi South
under Section 365-A, 368/302/109/201/120-A/34, read with Section 7
and 8 of the anti-terrorism act 1997.

On May 28, an application was heard by the presiding judge of the
anti-terrorism court Hyderabad and upon hearing the same, the trial
court had directed the release of the copy of the video-recoding,
reflecting the messages in terms of ransom, the appeal of Daniel
Pearl to the American government followed by the physical
slaughtering of Denied Pearl with a knife whereby his neck had been

The said video cassette was received by an FBI agent at the
American Consulate through a source of which was produced and
exhibited as article 1 at trial.

An application under section 265-C and 548 Cr.P.C, read with
Article 87 of the Qanoon-i-Shahadat Order 1984, was moved by the
respondents to obtain a copy of the video recording and on the
premise that the same was case property, and, therefore, a public
property and consequently under section 265-C Cr.PC all the
available evidence be made available to the defence before the

It was contended that the video cassette prepared through modern
devices, during the process of investigation was also a document,
and, therefore, the same could be provided to the accused persons.

The contention of the respondents was heard, and vide an order
dated April 23, the same was rejected by the trial court on the
premise that the order pertaining to three similar applications,
moved earlier for the same cause and purpose, had provided that the
advocate of the main accused had admitted that he would be
satisfied if the remaining items were provided to him other than
the video cassette.

It was also Raja Qureshi's contention that the application for
supplying the video cassette was moved again which was also
dismissed on April 12 and the last application for the same cause
was moved, but with no fresh ground or cogent reasons; and,
therefore, the same was also dismissed in the absence of the any
provision for review in the Code of Criminal Procedure.

It was specifically ordered on the undertaking of the applicant
that the video cassette could be viewed in the open court or in the
chambers with the consent of both the parties before recording
evidence of the concerned witness if the defence so desired.
Consequently, the said video in original, along with the copy, was
viewed by the presiding judge, the prosecution team, the defence
team, and the accused persons on May 14, in the presence of the PW-
12, John Moligan, an FBI agent from the US.

After having viewed the same, the prosecution witnesses were
subjected to extensive cross-examination by the defence and yet
another application was filed and argued on 28th wherein the
presiding judge had directed that a copy of the video cassette be

However, the applicant had on the same day, after the passage of
the order, filed an application seeking the stay of the operation
of the impugned order and upon hearing the applicant, the presiding
judge of the anti-terrorism court at Hyderabad inside Hyderabad
Jail stayed the operation of the order for 72 hours.

Raja Qureshi thus moved an application in the SHC, seeking setting
aside the trial court's directions.

ATC stays release of video showing Pearl's killing
Staff Correspondent

HYDERABAD, May 28: The judge of Anti-Terrorism Court (ATC), Syed
Ali Ashraf Shah, ordered the release of a video cassette showing
the slaughter of Daniel Pearl on an application filed by the
defence counsel. But soon after passing of the order, the court
stayed operation of the same order for 72 hours on another
application, filed by Sindh Advocate-General Raja Qureshi, chief
prosecutor in the Pearl case.

He requested the court to withhold release of the video because the
prosecution would challenge this order before the Sindh High Court.
The judge also directed the Medical Board that had conducted the
post-mortem of the remains of an unidentified body, exhumed from a
plot in Karachi, to provide the attested copy of the autopsy to the

In all, the court today heard and disposed of five separate
applications, four from the defence and one from the prosecution

The case has now been fixed for June 1 when the court would examine
two investigating officers, Hameedullah Memon and Rao Aslam.

On Tuesday, cross-examination of Mehmood Iqbal Hashmi, who was
supposed to bring the internet server from Karachi, was to be held.
But, he did not produce it before the court. Upon which the defence
counsel, Rai Basheer Ahmed, filed a contempt-of-court application
against him, arguing that since the prosecution witness failed to
bring the server he violated the court order willfully, therefore,
the proceedings under the contempt-of-court act should be initiated
against him.

The attorney general Sindh submitted before the court that it was
practically impossible for the prosecution witness to bring the
server worth over Rs4.5 million before the trial court as this
equipment was connected with the internet which was why it could
not be produced.

The contempt application was rejected by the court. The cross-
examination has been fixed for June 1 as well.

Senior Defence Counsel Abdul Waheed Katpar said the ATC judge
rejected another application of defence pertaining to the recording
of evidence of Marianne Pearl first. He claimed that as per rule
the investigating officers were to be examined last. But the court
disallowed this plea, observing that both the investigating
officers could be recalled, if the need arose, under section 540

The judge, however, allowed two other applications of defence. The
first was filed on the basis of a news reports suggesting that the
Karachi police had recovered a body in the jurisdiction of the
Gulzar-e-Hijri police station which was believed to be of Daniel
Pearl and the defence needed an attested copy of the autopsy of the

The counsel said that nine people were arrested by the police with
whose help the body was exhumed near the super highway.

The chief prosecutor objected to the grant of the application
saying that the recovery of an unidentified body had no nexus with
the present case at this point of time.

The court allowed this request with directives to the Medical Board
to furnish an attested/certified autopsy report to the defence

Yet another application that has been allowed by the court related
to the video cassette showing Mr Pearl's slaughter.

The defence lawyers had filed this application on May 14 after the
video was watched by the prosecution and defence lawyers, the
accused, and the judge.

The attorney general, Sindh, however, strongly opposed the
application while pleading that the prosecution did not want to
encourage terrorism but curbed it.

He argued that two similar applications had already been rejected
by the former presiding judge of this court on April 12 and 23. He
added that the release of the video cassette would not be in the
national as well as international interest.

Prosecution seeks time to consult govt
Staff Correspondent

HYDERABAD, May 27: The chief prosecutor and Advocate-General of
Sindh, Raja Qureshi, sought time from the Anti-terrorism Court to
seek instructions from the government to argue his application when
hearing resumed in the Daniel Pearl case.

Mr Qureshi, in his application, had sought appointment of a
commission to record the statement of Mariane Pearl, wife of the
slain Daniel Pearl, after her counsel, Barrister M. Jamil, informed
the court that he was not sure whether she would be able to travel
to Karachi.

During the previous proceedings, M. Jamil submitted to the court a
medical certificate, issued by Mariane Pearl's doctor, with her
statement telling the court that she was willing to appear before
the court and record her evidence after the delivery of her baby
expected on June 2. The statement, however, contained that her
travel depended on her doctor's advice.

The court fixed Raja Qureshi's application for Tuesday.

The prosecution is now left with only three witnesses - Mariane
Pearl and two investigation officers, Hameedullah Memon and Rao
Aslam - to close its side.

The court rose for the day after directing prosecution witness
Mahmood Iqbal Hashmi to bring whatever record he kept to prove that
the e-mails presented before the court were transmitted from the
computer of accused Fahad Naseem through sub-server of another
prosecution witness, Naeem Sheikh.

The order was passed by the court after defence counsel, Rai
Basheer Ahmed, objected to Hashmi's statement that the data could
be preserved on the main server. The PW must prove his point, he

Rai Bashir completed cross-examination of PW, Naeem Sheikh, and
will continue cross-examination of Iqbal Hashmi.

The counsel told newsmen, after the court proceedings inside the
Central Jail, that the statements of both the PWs were replete with
contradictions. He stated that what Iqbal Hashmi stated in his
application, had been denied by Naeem Sheikh in his examination-in-
chief and cross-examination.

He maintained that the timings and date of e-mails in question,
mentioning linkage of accused with electronic mails, were entirely
different from what had been mentioned in the statements and report
of both the PWs.

Hashmi had verified that the e-mails were sent through the sub-
server of Sheikh Naeem. As per the statement of Sheikh Naeem, he
provided e-mail facility to 60-70 users and the e-mails which were
verified by Iqbal Hashmi were transmitted from line No 66. This
line, he deposed, was used from telephone number and laptop of the
accused, Fahad Naseem.

Rai Basheer said that there was an important contradiction which
revealed that line No 31 was being used and not 66.

Chenab, Jhelum vulnerable to treaty mischief
By Ahmad Fraz Khan

LAHORE, May 25: India can disturb the flow of river Jhelum and
divert Chenab's water to Ravi if it decided to use river flows as a
weapon and unilaterally abrogate the Indus Basin Water Treaty,
water planners said.

The planners have been busy studying various scenarios on the
instruction of the government, to meet any eventuality.

Despite the exercise in run up to the meeting, they professed their
faith that India would not take such a route. "This will guarantee
a regional and, perhaps a global, disaster."

"Due to the hilly train India cannot divert Jhelum's water to
another river or stop it from flowing into Pakistan. But it can
certainly build a dam and regulate its flow to the detriment of
Pakistan," an expert in the Irrigation and Power Department said.
He said India could regulate the river flow in a way to disturb the
farming pattern in Pakistan, flooding it when water was not
required stopping it when it was needed.

The central Punjab as well as parts of southern Punjab depend on
Jhelum's water for irrigation. An Agriculture Department official
said if India disturbed the flow, it could make a large part of the
Punjab barren. The possibility, however, was at least be 15 years
away, the time required to build a big enough dam.

"Chenab is the river most vulnerable to Indian mischief," an expert
in the Pakistan Indus Basin Treaty commissioner's office said. The
river flows only 50 kilometres away from the Ravi in the Indian
planes. India can thus easily dig a canal to transfer its water to
Ravi and consume its entire flow. With additional water from
Chenab, it can expand its irrigation network to Rajhisthan desert.

River Indus is by and large safe from Indian designs. Originating
from Tibet, it flows through the Ladakh valley into area controlled
by Pakistan. Along its route in Indian controlled area, there is no
site suitable for a dam. Even if a site should be found and the dam
built, most of the water in Indus comes from its tributaries in the
areas under Pakistan's control.

A hydrologist working for the WAPDA said, "Indian can disturb river
flows but it would be at a phenomenal engineering cost."
Engineering solutions, he said, could be found for even the most
difficult task, but one should not lose sight of the cost. He hoped
that the Indian people will not support such an adventure.

An official in the WAPDA's water wing said projects involving
changes in river flows took a long time, decades in most cases. He
said Pakistan could invoke guarantees and mount diplomatic pressure
which may be unbearable. Being the upper riparian country India can
certainly create problems for Pakistan. In fact, that is what it
has been doing for the last many months. It snapped all links with
Pakistan in December and has refused to transfer data and there has
been a decrease in Chenab's flow since January, reportedly because
India has built a reservoir at Baghliar.

A lawyer said it was not easy to revoke international treaties like
the Indus Basin Treaty because they affected lives of billions of
people. The present Indian leadership could create the hype around
the treaty and derive some political mileage out of it, but legally
speaking its options were limited.

In practical terms, a river diversion would amount to a declaration
of war, an official in the Ministry of Water and Power said.
Pakistan would be bound to retaliate. "How could India expect
Pakistan to let it squeeze it drop by drop?" This would also expose
Indian dams to attacks by Pakistan. Dams are not attacked even
during a war. But such niceties are observed only on reciprocal

He also expressed his faith in international guarantees and
rational behaviour. Most of the worst-case scenarios never happen
because their cumulative cost is too much for everybody. With the
passage of time, the Indians would realize that most of their
hostility is misdirected and blaming others for one's own failures
does not bring any dividends.

PSO official, wife jailed for amassing illegal wealth
Staff Reporter

KARACHI, May 31: An accountability court convicted on Friday a
former PSO official, his wife and another family member for
amassing wealth through illegal means.

Judge Rahmat Hussain Jafferi of the AC-3, who is also the
administrative judge of all ACs in Karachi division, sentenced
Iqbal Ahmed Turabi to 10 years in jail and his wife, Najma Iqbal,
to a five-year term.

The couple were also fined Rs95 million each by the judge, who
ordered that the defaulter on the payment would have to undergo an
additional three-year term of simple imprisonment.

The judge also sentenced Asif Hussain, the younger brother of Mrs
Najma Iqbal, to a three-month term under section 31-A of the NAB
Ordinance for disobeying the court orders.

Asif Hussain' brother-in-law, Hassan Raza, was also convicted and
sentenced to a five-year term of rigorous imprisonment in the
reference. He was fined Rs3 million and he would have to undergo an
additional 30-month term in case of default on the payment.

The judge also disqualified all accused persons for seeking or from
being elected, chosen, appointed or nominated as member or
representative of any public body or any statuary or local
authority or in service of Pakistan or of any province.

The 47-year-old Turabi, who served the PSO from 1987 to 2000 as an
officer, acquired immovable property worth over Rs20 million in his
name and in the names of accused Najma Iqbal, Asif Hussain, Hassan
Raza and Ziauddin Taimuri.

The judge ordered the forfeiture of entire property of the accused
persons to the government. It included a flat and a shop in Chapel
Resort, Clifton, flat in Frere Town, a 1000-yard plot in Defence
Housing Authority (DHA), a house measuring 429 square yards in DHA,
a flat in Super Palace in Civil Lines, an office at Zamzama, DHA, a
flat-cum-office in Falaknaz Centre, Shahrah-i- Faisal, and a shop
in Prince Complex, Frere Town.

Besides, the accused maintained many local and foreign currency
accounts. The transactions in those accounts were upto 50 million.

WB to give $500m on June 12
Staff Reporter

ISLAMABAD, May 27: The World Bank will disburse $500 million
Structural Adjustment loan (SAC-2) to Pakistan on June 12
immediately after its board meeting on June 11 in Washington, says
a senior official of the bank.

He told Dawn here on Monday that another bank's board meeting will
be held in the first week of July to approve $100m budgetary
support for Sindh government and $90m similar support for NWFP.

The $500m SAC-2 is the biggest amount to be offered to any country
in one single shot at a marginal 0.75 per cent service charges. It
will be extended from the Bank's International Development
Assistance (IDA) window. Earlier, Pakistan had been offered $350m
SAC-1 for improving balance of payment support in 2001 which was
also a single tranche disbursement.

The official said that SAC-2 will be given for carrying out
structural reforms, financial management reforms, audit and
accounts reforms, education reforms and oil and gas sector reforms.
The money will also be available for poverty alleviation and that
it will basically cover the government's priorities contained in
the Interim-Poverty Reduction Strategy (I-PRSP).

He said that it was good to see that the government was monitoring
the implementation of the measures in the I-PRSP which will help
increase transparency and ensure scrupulous funding to various

Sources in the multilateral agencies believed while the World Bank,
IMF and the ADB were extending all necessary financial support,
Pakistan will have to generate a surplus in the non-interest
current account of the balance of payments of nearly one billion
dollar annually over 2000-2004 or about 1.5 per cent of the GDP.

This will be in sharp contrast to average annual resource deficits
of $1.5 billion, about 3 per cent GDP, run in the 1990s and will
require major export expansion as well substantial import saving.
In addition, the government should also mobilize at least $3bn from
privatization sales.

IDB to provide $250m for social development
ISLAMABAD, May 30: The Islamic Development Bank (IDB) will provide
$250 million assistance to Pakistan in the next three years for
various social projects, particularly education, health and poverty

IDB Vice-President Amadou Boubacar told APP after a memorandum of
understanding was signed between the authorities of the bank and
the Pakistan government.

He said finance support would also be extended to the National
Commission for Human Development (NCHD) set up by President Gen
Pervez Musharraf.

Replying to a question, Mr Boubacar said the bank would also
provide assistance to various ongoing projects, including Ghazi
Barotha project and Rawalpindi Medical College.

Pak Saudi Fertilizers sold for Rs8 billion
Staff Reporter

ISLAMABAD, May 31: The sale of Pak Saudi Fertilizers Limited (PSFL)
to Fauji Fertilizer Company Limited consortium was completed with
the sale agreement signing. FFCL offered Rs135.85 per share for 90
per cent shares (54 million) of PSDL, the highest bid received for
this public sector entity, which has yielded proceeds of over Rs8

Privatization Minister Altaf M. Saleem presided over the signing
ceremony, said a PC press release.

In this first major privatization in the industry sector undertaken
by the government, the sale price was within the acceptable range
of the approved reference price.

PSEB claims misleading: $130 million MoU
By Arshad Sharif

ISLAMABAD, May 31: The top officials of Pakistan Software Export
Board (PSEB) have been caught on the wrong foot as their claims of
having signed a $130 million MoU were proved to be false giving
rise to mistrust about the "achievements" projected by the ministry
of science and technology, investigations revealed.

On assuming charge as the federal minister for science and
technology, Dr Atta-ur-Rehman set out to bring a revolution in the
Information Technology sector but many of his initiatives are
falling prey to false projections by different departments painting
wrong pictures, sources claimed.

In the case of PSEB, the sources said, a three-year ambitious
target of exporting IT products worth one billion dollars was
stipulated. The managing director of PSEB, Sohail Shahid, is
optimistic that the target would be achieved by December next.

Many industry leaders are, however, doubtful of the optimism
expressed by the PSEB MD in view of rejection of one of PSEB's
claims of signing of an MoU by an Islamabad-based company. This has
brought the credibility of the Board's achievements and its ability
to achieve the targets into dispute, those in the industry claimed.

According to the PSEB sources, Askari Information Systems rejected
the claims of MoU initiation or signing worth $130 million at the
UK Out-Sourcing World exhibition, which was claimed to have been
done by the PSEB.

The sources said Askari Information Systems, along with other
companies, was invited by the PSEB to participate in the Out-
Sourcing World Exhibition held in UK during the third week of

On return from the exhibition, the record shows, the PSEB MD, in a
press conference, claimed the signing of an MoU worth $130 million
between Askari Information Systems and a telecom company. The same
claim was repeated in a few other press conferences, the record

When contacted, Askari Information Systems denied the signing of an
MoU with any company.

AIS chief executive officer, Zain Islam, said, "AIS was in active
communication with a large US-based company for the past one year.
The company was wooed by us during the past 12 months to make a
major investment of $120 million in the telecom infrastructure in
Pakistan but the MoU was not signed."

Rejecting the claims of the PSEB that the project was initiated at
the exhibition, Mr Zain said, "Only the final decision to make that
investment synchronised with the London event 2002". He said: "An
MoU for a multi million dollar business is nothing more than a
vehicle for achieving cheap publicity. If only half of the so-
called MoUs would have materialised, our national revenue stream
from IT would have exceeded the textile sector."

Interestingly, the PSEB officials claimed the MoU was signed by AIS
and termed it an achievement of the Board in the UK exhibition.
However, some of the representatives of the software houses, who
participated in the exhibition, said the exhibition was nothing
more than wastage of funds.

The PSEB top official, the sources said, had announced that the
board would arrange the meeting of AIS leadership with President
Gen Musharraf for such a big achievement.

Later, the correspondence from AIS resulted in the PSEB having to
eat its words and saying the agreement would be signed in June.

The PSEB MD, the sources said, declared after the faux pas, that
the final signing ceremony would take place during June in

The AIS, contrary to the PSEB claims, said the project was likely
to be finalized in July.

"The denationalization of such pipeline projects for point- scoring
may cost the private sector their business," sources in the
industry said, condemning the irresponsible behavior of the PSEB

The PSEB's decision to participate in the exhibition has also come
under fire from the industry players. "The exhibition, held for the
first time, did not have even its website. It not only failed to
attract sizable IT leaders but also dealt a heavy blow to public
exchequer," an industry leader who was taken on the PSEB's
bandwagon claimed.

Ex-BEL chief files suit for damages against SBP
Staff Reporter

KARACHI, May 28: Former president of the Bankers Equity Limited
(BEL) Inamul Haq, who has been honourably acquitted by an
accountability court, has filed a suit with the Sindh High Court
for recovery of damages of over Rs210 million from the State Bank
of Pakistan (SBP) and five other respondents.

The defendants have been put on notice for Aug 13, to answer the
claim. Represented by advocate Nuruddin Sarki, Mr Haq has held them
responsible for filing false charges against him leading to his
illegal arrest and detention, mental and physical torture and loss
of his service.

Besides putting the main blame on the SBP, he has put the onus on
the former SBP Governor, Dr Mohammed Yaqub, whom he accused of
playing the major role in collusion with his political supporters.

He was removed by the military government soon after it came into
power. A complaint had also been filed against Dr Yaqub by the
former management of BEL with NAB for his questionable role as BEL
chairman before it was privatized in 1996.

Other respondents include R. A. Chughtai, Deputy Governor of the
SBP, Majeeduddin Khan, appointed CEO of BEL by the SBP, Major
Mushtaq Ahmed (retd), the then DG, FIA, Shahid Mehboob, and
Majeeduddin Khan. They have all been named in the suit to pay
damages of Rs20 million each.

Mr Haq has contended that his acquittal, after a long trial, has
established that charges of embezzlement and fraud against him were
false and baseless. He has claimed that by going to the press and
state-owned media before the matter had even reached the courts, Dr
Yaqub had committed libel and defamation which had injured Mr Haq's
reputation and had caused him anguish and pain and suffering to him
and his family, affected the health of his wife and the education
and career of his children. His liberty had also been interfered
with causing him physical pain and injury to his health.

Since no charges have been proved against him nor was a proper
procedure followed, Mr Haq has regarded his removal by the SBP as
unjustified and unlawful and has claimed additional compensation of
about Rs10 million for loss of service and incurring other costs.

Rally falters half way on weekend selling
Staff Reporter

KARACHI, May 31: The KSE 100-share index suffered a fresh modest
fall of 6.27 points at 1,663.35 as compared to 1,669.62 a day
earlier, reflecting the weakness of some leading base shares
barring Hub-Power, which ended unchanged.

Lever Brothers, Central Insurance, Clariant Pakistan, Dawood Cotton
and BSJS Balanced Fund were leading among the gainers, rising by
Rs.1.50 to 14 followed by Zahidjee Textiles, Modaraba al-Tijarh,
Kohat Cement, and some others, which rose by one rupee to Rs.1.30.

Losers were led by Wyeth Pakistan, Glaxo-Wellcome Pakistan, PSO,
IGI Insurance and Aventis Pharma, falling by one rupee to Rs.6.

Trading volume fell to 91m shares from the previous 114m shares as
losers maintained a fair lead over the gainers at 149 to 82, with
48 shares holding on to the last levels.

Hub-Power topped the list of most actives, unchanged at Rs.22.80 on
37m shares followed by PTCL, lower 10 paisa at Rs.15.45 on 20m
shares, PSO, off Rs.1.90 at Rs.128.85 on 8m shares, MCB, lower 50
paisa at Rs.24.40 on 4m shares and Sui Northern Gas, up 10 paisa at
Rs.13.20 also on 4m shares.

Other actives were led by KESC, up 20 paisa on reports that the
army will aid the new management for one year after its sell-off to
any prospective bidder on 4m shares, FFC-Jordan Fertilizer, steady
10 paisa on 3m shares, Engro Chemical, off 55 paisa on 2m shares,
ICI Pakistan, easy five paisa also on 2m shares and Pak PTA, firm
by five paisa on 1.450m shares.

FUTURE CONTRACTS: Bulk of the speculative selling was again
confined to both the settlements of the PSO. While the maturing May
settlement eased by Rs.2.39 at Rs.128.80, the June contract fell by
Rs.2.54 also at the same rate on 1.457m shares. Others leading
shares were traded fractionally on either-side.

Among the most actives, Hub-Power was leading, fractionally lower
by one paisa at Rs.22.81 on 6.553m shares for May but up by 11
paisa for the ruling June contract at Rs.23.11 on 8.725m shares.

PTCL followed it, off 20 paisa at Rs.15.40 on 4.663m shares for May
and easy five paisa for June contract at Rs.15.70 on 4.795m shares.
Turnover in other forward shares was below a million shares.

DEFAULTER COMPANIES: Shares of eight companies came in for
alternate bouts of buying and selling under the lead of Ravi Rayon,
unchanged at Rs.5 on 37,200 shares followed by Mehran Jute, easy
five paisa at Rs.0.85 on 11,000 shares and Suzuki Motorcyles,
unchanged at Rs.4.85 on 6,500 shares.

BOARD MEETINGS: Apollo Textiles, June 4, Abbott Lab June 7.

DIVIDEND: Security Leasing Corporation, right shares at the rate of
50 per cent.

KSE index recovers another 52 points
Staff Reporter

KARACHI, May 27: The index recovered 52.24 points or 3.14 per cent
at 1,715.46. Big gainers were led by Engro Chemical, PSO, Shell
Pakistan, Wyeth Pakistan and BOC Pakistan, which posted gains
ranging from Rs4 to Rs6. They were followed by Kohinoor Weaving,
Sapphire Textiles, Mari Gas, Security Papers and several others, up
by Rs2.15 to Rs3.45.

Losses on the other hand were fractional barring Treet Corporation
and Lever Brothers, which fell by one rupee to Rs10.

Trading volume rose to 174m shares from the previous 102m shares as
advancing shares managed a strong lead over the losing ones at 166
to 105, with 29 holding on to the last levels.

The most active list was topped by PTCL, up Rs1.25 at Rs16.60 on
53m shares followed by Hub-Power, higher by Rs1.55 at Rs22.80 on
46m shares, PSO, up Rs4.20 at Rs137.30 on 18m shares, FFC-Jordan
Fertilizer, steady by 35 paisa at Rs6.85 on 14m shares and KESC,
lower 45 paisa at Rs5.05 on 9m shares.

Other actives were led by Sui Northern, up 45 paisa on 8m shares,
Dewan Salman, firm by 30 paisa on 3m shares, Engro Chemical, higher
by Rs4 also on 3m shares, ICI Pakistan, up 35 paisa on 2.416m
shares and Pak PTA, lower 30 paisa on 2.229m shares.

FUTURES CONTRACTS: Forward counter also followed the lead of the
ready section where current favourites finished with smart
recoveries, major gainers among them Engro Chemicals and PSO, both
settlements, the ruling May and the distant June contracts, up by
Rs3.80 to Rs5.05 respectively.

The notable feature was that trading also commenced in the June
settlements side by side the maturing May contracts and all the
shares made a firm debut in a rising market.

Hub-Power was massively traded at the lower levels, up Rs1.60 at
Rs23 on 15.864m shares followed by PTCL, higher by Rs1.17 at
Rs16.62 on 5m shares. The newcomer June settlements were also
actively traded along with the others.

DEFAULTER COMPANIES: Shares of over a dozen companies came in for
active trading under the lead of Suzuki Motorcycles, easy 25 paisa
at Rs5.05 on 50,500 shares followed by Mehran Jute, lower by the
same amount at Rs1.20 on 15,500 shares and Ravi Rayon, unchanged at
Rs5 on 12,300 shares.

DIVIDEND: Sargodha Spinning, interim five per cent.

Equities recover with full might on optimistic note
Muhammad Aslam

The KSE 100-share index by a massive 135.64 points claimed to be
highest-ever single session record for it. However, the market
managed to recover a part of the massive loss of about 252 points
suffered during the week at 1,663.22 as compared to previous week's
close of 1,779.76 points.

The decline in the index was of the order of 116.54 points or a
loss of about Rs.33 billion in the market capitalization at
Rs388.168 billion as compared to the previous week's Rs411 billion.

Energy, chemicals and most of the blue chips on the other counters
notably, the MNCs received massive battering, falling well below
the circuit breakers.

Big losers were led by the Pakistan Oilfields, the PSO, the Shell
Pakistan, the Wyeth Pakistan and the Lever Brothers, which suffered
fall, the largest being in Wyeth Pakistan.

The PSO, the Shell Pakistan, the Pakistan Oilfields, the Attock
Refinery, the National Refinery, Al-Ghazi Tractors, Millat
Tractors, the BOC Pakistan, Glaxo-Wellcome also fell sharply, but
the weekend recovery allowed them to finish with clipped gains.

Some of the second liners, including the Clover Pakistan, Wah Noble
Chemicals, the Goodluck Industries, and the PEL Appliances managed
to finish modestly higher.

Owing to Thursday closure on account of badla business problems,
trading volume fell to 500 million shares as compared to previous
750 million shares, bulk of which went to the credit of the Hub-
Power, the PTCL and some other actives.

The ICI Pakistan, Sui Northern Gas, Dewan Salman, the PSO, Engro
Chemical and Fauji Fertiliser also remained in active demand at the
lower rates.

The second-liners, such as the KESC, the FFC-Jordan Fertiliser,
Japan Power, the Pak PTA, D.G.Khan Cement and the Telecard were
also actively traded.

Back to the top
Going nowhere
By Ardeshir Cowasjee

Leaders of nations? Leaders of two of the world's most enlightened
civilizations? One leader talks of clouds and skies and lightning.
The other leader talks of resisting the thunder and lightning with
military might.

Where were they both in 1946, when Albert Einstein watched a film
recording the destruction and death caused in Hiroshima and
Nagasaki by atomic bombs, and holding his head in his hand and
weeping he said: "Had I known what I helped make could destroy, I
would have chosen to have remained a shoemaker."

On May 24, researchers at Princeton University, where Einstein once
worked, came out with statistics on the deaths and injuries that
would ensue were India and Pakistan to unleash their nuclear
weapons upon each other. The scenario visualized was that were
India to bomb Karachi, Lahore, Rawalpindi- Islamabad, and
Faisalabad, and in turn Pakistan were to bomb Delhi, Mumbai,
Kolkata, Bangalore and Chennai, the estimated number of deaths in
India would be 1.7 million with 900,000 wounded, and in Pakistan
1.2 million deaths and 600,000 injured.

These figures are grossly under estimated as they only represent
immediate casualties from blasts, fire and radiation. An unknown
number of deaths would occur over the future years from cancer.
Those immediately killed would be blessed, for the injured and
affected would linger on in pain and suffer horribly.

Lions and tigers from both sides of the divide have roared and
bragged of the damage each is able to inflict upon the other. These
fierce and ferocious beasts have no thought, though, for what each
of their countries and their peoples have lost through the years of
acrimony and rancour and the constant readiness of each to take on
the 'traditional enemy' at any moment and vanquish it. India, the
larger, the more powerful, the better off, can perhaps stand and
exist on its own, but Pakistan, down and out, almost on its knees,
with its fickle and feckless allies has little chance of going it

Take our great patriot and two-times failed prime minister, once
the toast of the towns around the world, who is now writing in the
Indian press, drawing parallels, and inciting the Pakistan army to
rid itself of General Pervez Musharraf, in the same manner as the
Pakistan army, at the closing of 1971, rid itself of General Agha
Mohammad Yahya Khan, thus enabling her illustrious father, democrat
and patriot Zulfikar Ali Bhutto, to take over the reins of
government, save what was left of the country, and lead it on to
glory. Daughter Benazir is now ready, more than ready, to do for
and unto us as did her father upon whose name she continues to

What does go in Pakistan's favour is that our President General is
willing to talk and talk, and go on talking, whereas the man on the
other side, without making any allowances for the constraints and
restraints our general faces, wishes no more talking and demands
only action in the form of the delivery of promises made.

At this stage it may be a bit late to say so, but the sane can only
repeat and repeat that the Kashmir issue, as far as this broken
country is concerned, must be put on the backburner. The leaders,
political and military, surely realize (though they dare not
publicly and openly admit it) that Pakistan is not capable of
fighting a war and winning both it and Kashmir. Before more harm
comes upon us, this issue must be relegated to its rightful place
in the Pakistani scheme of things. Let it simmer, let it not boil.
Let it wait for circumstances to change and perhaps one day improve
in our favour.

Long, long ago the subcontinent had other types of men such as
Mohandas Karamchand Gandhi and Mohammad Ali Jinnah, who, after the
immediate horrors of partition, were able to impose some sort of
sanity upon the relationship between the two new-born countries. We
who were in Karachi in 1948, whilst Jinnah was still with us, well
remember the incident concerning the large bronze statue of Gandhi
which since 1931 had stood on the roundabout in front of the High
Court of Sindh.

In January of that year, Karachi, unusually, experienced a round of
Hindu-Muslim riots resulting in a heavy exodus of Hindus from the
city and much grabbing of abandoned properties. One day, during the
course of the riots, whilst Jinnah was driving by the High Court,
he noticed Gandhi's statue and fearing for its safety asked his
secretary, S.M. Yusuf, to see to it that the statue was removed to
some safe place until the situation reverted to normal.

Yusuf, in the inflamed situation, thought it best to bring in a
neutral and contacted Jamshed Nusserwanjee, a Parsi, and sought his
help. Jamshed rounded up and organized the old boys of the BVS
Parsi school, and provided them with tools and a lorry. In the
hours of darkness, we went off and removed Gandhi from his plinth
and took him to my father's house on Belgrave Terrace and installed
him temporarily in one of the garages whilst we contacted the
Indian high commissioner to ask him to come to Gandhi's rescue.
Discretion being his better part of valour in those disturbed days,
he would have nothing to do with it all. The statue was then taken
to the BVS and hidden behind a heap of logs in the carpentry class.

Much later, after things had calmed down and the Indians had built
their high commission on Bonus Road (renamed Fatima Jinnah Road),
the then Indian high commissioner gladly took the statue and Gandhi
was installed in the foyer of his chancery. Gandhi remained in the
building when it was converted into a consulate, the high
commission having moved to Islamabad, and he was finally taken to
the capital in 1988 where he now stands in the foyer of the Indian
high commission, designed to accommodate the bronzed MKG.

This present madness cannot continue for ever. Neighbours we are
and neighbours we will remain. We have to learn somehow to coexist.
The French and the Germans, diverse as they are, traditional
enemies as they were, since 1945 have decided to march together
after having fought each other for well over half a century.

Are we two nations not civilized enough to follow suit? Must both
sides behave as if the leaders and the led have just slid down from
their respective trees?

Thank God, no more running
By Ayaz Amir

When we signed up for loyal service with the Americans last
September -- a month evil for Pakistan as much as for the United
States--we prided ourselves on our cleverness, thinking we had
outsmarted India and assured our security. As our American friends
(friends?) pile up the pressure on us and talk sweetly to India
nothing looks more foolish than those happy assumptions.

Our present troubles too are largely traceable to that period for
the stance we adopted in September led us, willy-nilly, to turn
meltdown-under-pressure into an art form. Our weakness has
encouraged Indian truculence and even inspired a geriatric prime
minister to flights of poetry at our expense.

One day he threatens Pakistan with decisive war. The next day he
says, "...the sky is clear. But sometimes lightening can strike
even when the sky is clear."

Pakistan has been through hard times before but seldom has it had
to put up with so much patronizing.

Thank God then for belated wisdom. To judge by Gen Musharraf's
address on Monday evening our retreat has ended. The message
delivered was simple: no blowing the bugles of war but no
succumbing to Indian threats. If war was imposed on us we would
give a befitting response. Much too late these words of resolve but
better late than never.

No one in Pakistan wants war. Certainly not in this heat. But there
is no great appetite for being pushed around either. It is hard to
say what ordinary Pakistanis are sick of more: India's superior
attitude or the wilting-under-pressure of their ruling generals. Is
it for this, they ask, that they maintain such a large army?

India and the world must understand one thing. The Pakistani nation
is capable of great foolishness. It can endure a lot but it will
not take kindly to Indian threats. That simply is not in its
chemistry. Peaceniks and western interlocutors reading lectures to
Pakistan about doing more to meet Indian demands should feed this
into their computers.

To what a pass have we been brought by knocking knees. We are being
spoken to in the language reserved for Arafat. Just as the onus for
everything in the occupied territories is on the Palestinians, none
on the Israelis, the onus for preserving the peace in the
subcontinent is on Pakistan. We must satisfy Indian concerns. This
is what our western friends are telling us. India is under no
obligation to solve the mess it has created for itself in Kashmir.

Is it Pakistan's fault that India has had a revolt on its hands in
Kashmir since 1989? Pakistan took advantage of this situation but
did not invent or manufacture it, an undertaking beyond its powers.
That achievement was India's alone. For full 17 years after the
signing of the Shimla Agreement India had the chance, the historic
chance, to win over the Kashmiri people and soften their bitterness
towards Indian rule. If India could not do this, if it still cannot
do it, how is Pakistan to blame?

None of this justifies "cross-border infiltration", the bogey with
which Pakistan is being hammered these days. But it also does not
justify India's self-righteousness. If in Kashmir the only problem
was cross-border infiltration, the Kashmir revolt would have died a
long time ago. The real problem there is the alienation of the
Kashmiri people. When next moved to poetry Mr Vajpayee should try
looking at this problem.

Agreed, Pakistan's cause has been ill-served by its military
rulers. Convinced of their infallibility, they have made a mess of
so many things. On the diplomatic front we stand isolated. The
American embrace has had fatal consequences, making Pakistan more
susceptible to external pressure. Long ago, before misery overtook
Afghanistan, we used to speak of an Afghan-Indian nutcracker. We
now face an American-Indian nutcracker. Such have been the wages of
military innocence.

But enough of wailing. The spirit of Vichy will get us nowhere.
This is the time to discover some backbone, not to flog despair.
For better or worse, the Marshal Stalin in charge of the nation's
destiny in this grim hour is Gen Musharraf. However much we may
dislike the face of military rule, behind him at this juncture the
nation has to rally. To our political quarrels we can return when
all this is over.

Some good has already come from this crisis. Shedding some of his
arrogance, Gen Musharraf has apologized, albeit partially, for the
absurdities of his referendum. He has also renewed his invitation
to those political parties, representing the national mainstream,
which had earlier refused to meet him. Whatever their reservations,
these parties should now come forward and meet the general. The
last thing we can afford at this juncture is the picture of a
divided nation.

To be sure, Gen Musharraf can also do more for national unity. He
can, for instance, avoid any talk of amending the Constitution or
setting up a national security council as long as the standoff with
India lasts. These theories represent the ugly side of military
rule and should be kept to one side for the time being. Who knows
wisdom may prevail and we are rid of them altogether when we come
out of this crisis.

The general must also look a bit to his rhetoric. In times such as
these, words should be measured carefully. It is no good saying as
he did in Azad Kashmir the other day that Pakistan would unleash a
'storm' if India crossed the Line of Control. If India crosses the
LoC we should be looking to giving it a bloody nose and throwing
its forces back. This should suffice. Poetic imagery we can leave
to Mr Vajpayee.

When Philip of Macedon (Alexander's father) threatened the people
of Sparta with the message, "If I enter Laconia (the old name for
Sparta and from whence comes the word laconic), you shall be
exterminated", they wrote back the one word "If". They did not
speak of unleashing storms.

After Hitler's war on Poland in 1939, Stalin tried to emulate
Hitler's example by attacking Finland. Eventually, through sheer
weight of numbers, the Red Army prevailed but not before the
Finnish army, under Marshal Mannerheim, had given it a bloody nose.
In 1979 China attacked Vietnam hoping to teach it a lesson. The
People's Liberation Army too got a very bloody nose. We should be
studying these examples carefully while leaving storms and
tempests, and the underlying threat of nuclear war, alone.

So far events have conspired to put the squeeze on Pakistan,
obliging Pakistan to make a virtue of conciliation. But with
Pakistan finally saying thus far and no more, the heat shifts to
India as it considers the dilemma confronting it: make good on its
threats or back off from its rhetoric. It's a tough corner India
has boxed itself into.

Louder than the threat of war, however, is the sound of
subcontinental irony. For long Pakistan was the belligerent power
in the subcontinent, its people subscribing to the belief that one
Muslim was equal in combat to ten Hindus. In the order of battle
for the 1965 war it was actually put down in black and white that
as a rule Hindu morale cracked under a few sharp blows. We have
learned our lessons in realism the hard way. As war-talk grips
India, it seems as if India is now travelling down the same road.

If we hold our nerves and do not panic, and Gen Musharraf resists
the temptation of another flip-flop (a crucial precondition), we
should be all right. Going to war is more difficult than holding
out the threat of war.

Meanwhile let us also account for another problem. The chatter of
war and punishment flows easiest and sounds loudest in war and map
rooms made comfortable by air-conditioning. If it were up to the
soldiers on the front or the villagers who have fled their homes on
both sides of the border, we might not be living through these
crazy times.

A conflict neither side can win
By Irfan Husain

As Pakistan and India drift once more towards armed conflict, it is
clear their leaders continue to refuse to heed either the lessons
of history or the needs of their own people.

The war hysteria being generated in India over the last few months
is now reaching fever pitch. Combined with the flak the BJP has
been taking over the Gujarat programs and its electoral setbacks in
recent state elections, there is a certain internal compulsion
dictating a bellicose policy towards Pakistan. Much of the Indian
media echoes and supports this stance, so it is difficult to see
how we can escape some kind of armed action. If the recent killings
in an army camp in Srinagar don't trigger it, some other atrocity
like Abdul Ghani Lone's murder probably will.

In all likelihood, action will be in the form of a limited bombing
attack or an incursion into Azad Kashmir, based on the calculation
that Pakistan will not widen the conflict and cross the
international border. Don't bet on it: this is the same mistake
Ayub Khan made in 1965 when he initiated a limited attack in
Kashmir and was then shocked to find Indian forces knocking at
Lahore's door. The fact is that if India does cross the Line of
Control in Kashmir, there will be enormous pressure on Musharraf to
retaliate at a time and place of their own choosing. And the
riposte will not be long delayed because of the rage in the

When will nuclear forces enter the equation is the 64 million
dollar question. For the present, one important factor staying
India's hand is the presence of American forces in the area:
Washington does not want them or their operations against Al Qaeda
jeopardized. Once hostilities break out, there is no telling how
quickly they will spin out of control. To a large extent, the
American military presence in and near Pakistan has been a blessing
in disguise.

When Islamabad claims that the attacks initiated by separatist
militants are not its responsibility, it is only partly right.
These jihadi organizations operate with a great deal of autonomy.
But having said that, it cannot be denied that they are supported
and sustained by private outfits here in Pakistan, and they receive
more than a wink and a nod from officialdom. Until recently, they
were openly collecting contributions, and even when they were
officially banned by the government in January, they swiftly moved
into Azad Kashmir which is under complete Pakistani control.

Just to jog readers' memories, two out of three of Pakistan's wars
were fought when the army was in charge, and the first one in 1948
mercifully remained confined to Kashmir. In the other two
conflicts, the military rulers of the day were deeply embroiled in
political crises: Ayub Khan may have won the shady, indirect
election of 1964 against Miss Fatima Jinnah, but his legitimacy was
suspect; Yahya Khan and his junta were overwhelmed by the results
of the 1971 elections and sought a hamhanded military solution to a
deep-rooted, multi-dimensional predicament.

Now, the rigged referendum has again brought about a convergence of
confrontation with India and an internal political crisis in which
Gen Musharraf's moral authority to rule has been severely dented.
The contradiction is compounded by the military rulers' compulsion
to keep the two major political parties out of the reckoning while
it tries to cobble together a facade of national unity with a
ragtag collection of nonentities. In a sense, Musharraf and his
advisers have painted themselves into a corner.

In this crisis, Pakistan finds itself friendless: the Americans are
trying to quieten things down for their own interests. But there
are no ringing expressions of solidarity from our traditional
friends like China, Iran and Turkey. The Arabs want to stay on
India's right side. While many countries have appealed for sanity
and restraint, nobody has leapt to Pakistan's defence or condemned
India's bellicosity.

It should be obvious that this is a conflict Pakistan cannot win,
but a victory for India will be a pyrrhic one: the insurgency in
Kashmir will certainly not stop. And if Gen Musharraf is unseated,
those who follow him will probably not even make a pretence of
reining in the jihadis. A destabilized Pakistan will be very
volatile and a danger to the entire region. It goes without saying
that if the conflict escalates into a nuclear exchange, neither
side will win.

Apart from wanting to crush the insurgency in Kashmir, what are
India's goals in turning on the heat? Clearly, it is cashing in on
the 'war against terror': the killing in Kashmir has been going on
for over a decade without Indian forces being mobilized along the
international border. Indian politicians talk incessantly of their
desire to 'teach Pakistan a lesson.' But a lesson in what? A war,
even a limited one, in which Pakistan is the loser will only give
Islamabad greater incentive for sending in more militants.

Unfortunately, the real lessons for both sides are being lost under
the clouds of hype and hysteria issuing from the two capitals.
Pakistan has to accept, once and for all, that it cannot force a
decision on Kashmir. It has neither the political nor the military
clout to dictate its terms. Every year, the military equation
shifts implacably against us. Currently, India has an eight billion
dollar arms acquisition program. In diplomatic terms, we are
isolated on this issue as never before: even our closest friends
insist that Pakistan open talks with our adversary. But this is
something Islamabad has been demanding for months, and it is India
that has consistently refused a dialogue.

This is an incomprehensible position, at par with the Indian
decision not to permit the two countries to play cricket against
each other while they do play other sports. Since India is
insisting that Pakistan is responsible for terrorist attacks in
Kashmir and elsewhere, while Islamabad consistently denies it, why
can't the chiefs of the intelligence services of the two countries
sit together and exchange information?

Surely talking is better than this insane sabre-rattling that is
jangling nerves and causing massive losses in investor confidence
as well as the stock markets of both countries. As the far larger
and more powerful country, one has always felt that India can take
unilateral steps to defuse tensions without compromising its
security in a way that Pakistan can't. Unfortunately, Indian
leaders have become hostage to their own rhetoric, and seem bent on
seeking cheap popularity through their belligerent stand.

Pakistan, on the other hand, is a prisoner of past policies it
lacks the political will to change. Despite Gen Musharraf's January
speech aimed at reassuring the West and defusing tensions with
India, the perception is that he has not quite delivered on his
promise to put the jihadi jinn back into the bottle that had been
uncorked by his predecessor, Ziaul Haq.

Both governments need to show some maturity and a modicum of
concern for their people and step back from the brink before it is
too late.

Giving peace a chance
By Irfan Husain

Normally, when heads of state make a televised statement to their
nation, it is because they have something to say. I'm afraid Gen
Musharraf's speech last Monday was devoid of anything new, but by
raising expectations he disappointed his vast audience around the

To be accurate, he did give dates for national and provincial
elections, but this task could have been accomplished by the chief
election commissioner. However, given the severe erosion of
credibility this worthy has suffered after supervising the recent
rigged referendum, it is probable that not many people would have
believed him. Indeed, after Musharraf's admission that the exercise
was partly tainted, many others in the chief election
commissioner's place would have resigned, but far too few of our
judges have demonstrated this kind of principled behavior in the

But as to the rest of his speech, one fails to see why it had to be
made at all: Pakistan's official position has always been that it
does not condone or permit militants to cross the Line of Control;
that we will not start hostilities, but if war is thrust on us, we
will defend our country. What was the point in repeating the

Many of us had hoped that President Musharraf would try and defuse
the situation by promising tougher action against the jihadis.
Indeed, this would be no new concession but only a reiteration of
the pledge he made in January. However, by releasing most of the
2,000 members of various extremist groups arrested earlier this
year, he had indicated a softening of his earlier commitment,
something the world community as well as most Pakistanis had viewed
with dismay and disappointment.

Let us be clear that action to eliminate extremism from Pakistan is
in our best interest, and not something the government should do to
placate India or the United States. If terrorists are striking at
Indian targets, they are doing the same right here in Pakistan: the
killing of French engineers, an American journalist and foreign
churchgoers in Islamabad is linked to the same people who are
slaying civilians in Indian-held Kashmir. The faces of the killers
and the names of their outfits may be different, but their mindset
and motivation are identical.

Why did Gen Musharraf feel he had to match Vajpayee's sabre-
rattling? Testing missiles at this juncture of heightened tension
hardly raises our security. Granted that India conducted similar
tests soon after it mobilized its forces earlier this year, but why
do we have to mimic our neighbor�s bellicose stance?

It is now four years since we conducted our nuclear tests. Are we
more secure as a result? One of the reasons Musharraf cited for
immediately agreeing to join the anti-terrorist coalition was to
protect our 'nuclear assets'. Hello? one thought they were supposed
to be protecting us! But on a more serious note, what would have
happened had we not responded to India's earlier series of tests? I
put this question recently to a distinguished ex-ambassador and he
replied that India would then have gone around the world saying we
did not in fact have a nuclear device.

So? To this day, Israel publicly denies having a nuclear arsenal
but nobody doubts its capability in the field, and yet it has
attracted no sanctions or general condemnation. Had we not tested,
we would have occupied the moral high ground, apart from reaping
considerable financial benefits instead of getting sanctioned to
the eyeballs.

The truth is that we have become so used to trying to match India
that it is now a knee-jerk reaction with our policy-makers. Indeed,
soon after the hugely successful film 'Gandhi' was produced by Sir
Richard Attenborough nearly 20 years ago, the government of the day
began planning a movie on Jinnah. This was finally produced after
much wrangling, and I'm afraid that artistically, it was a
disaster. Fortunately for Mr Jinnah and for Pakistan, the producers
could get nobody to distribute it abroad and the film has been
mothballed after being shown on PTV.

We seem not to have grown up to the point of accepting that India
is a far bigger country, and its name and image have an
international resonance that ours does not. Pakistan, as a
relatively new country, has still to settle on an identity and
determine its place in the world. This cannot be done through
simultaneously denying our South Asian roots as well as trying to
match India in everything.

Above all, we are in denial about the military and economic
disparity between the two countries. Even educated Pakistanis
insist they are not willing to accept Indian 'hegemony'. But what
does this mean? Some people seriously think that India is
interested in the break-up of Pakistan. But even the most hawkish
Indian probably realizes that such a scenario would cause enormous
problems for India and the entire region. The last thing India
could possibly want is millions of more Muslims within its borders.
Then there are those Pakistanis who genuinely believe that without
Kashmir, Pakistan would be dependent on India for water. But we
have existed for 55 years without Kashmir, and our agriculture has
grown steadily despite the population explosion we have

After my column last week, I have received several e-mails from
jingoist Indians and Pakistanis suggesting that nuclear weapons be
used against each other sooner rather than later. Mercifully, I
have also got a lot of mail from pacifists on both sides who are
basically saying "a plague on both their houses." Contrary to
popular wisdom, nuclear capability seems to have made the
subcontinent a more dangerous place as its deterrence value appears
to be encouraging adventurism on both sides.

Despite Gen Musharraf's assurance that Pakistan is not exporting
extremism to Kashmir or any other country, many world leaders,
including Bush, Blair and Chirac, disagree, and all of them have
urged restraint on Pakistan. It should be possible to establish
whether cross-border infiltration is taking place by patrolling the
LoC. India has rejected neutral patrolling, but an Indian reader
has suggested joint patrols by Indian and Pakistani troops. So
what's wrong with this idea? Why can't the military commanders sit
down and work out the modalities for its implementation?

Given a modicum of goodwill, tension can be lowered, and
eventually, the two countries can return to serious negotiations.
But with the current level of insanity and macho swaggering on both
sides, it seems that we are doomed to helplessly drift from one
crisis to another until somebody finally pulls the trigger. Surely
Kashmir is not worth a nuclear holocaust.

FST admits Jehangir Khan's plea against PIA
Staff Reporter

KARACHI, May 27: The Federal Service Tribunal admitted a petition
of the ten-time winner of British Open and six-time holder of world
squash championship, the legendary Jehangir Khan, who had
challenged his sacking by the management of PIA, apparently, on the
pretext of austerity.

When Khan's petition, filed through Khwaja Shamsul Islam, came up
before a bench comprising Akbar Memon and Barkat Ali Baloch,
members of the FST, they held that the points raised by the
appellant required consideration and put the PIA on notice for Dec
16, by which time the airline was asked to submit comments.

The living legend of squash had approached the FST on the ground
that the order to send him on compulsory retirement was illegal and
violative of fundamental rights. It was contention of the
appellant's counsel that the respondent's premise was mala fide as
it had hired many people, including retired army officer, with lots
of fringe benefits.

If austerity compelled the airline to dispense with the services of
Jehangir Khan, whose image was also used by the airline for
promotional purposes, then how could the PIA management hire more
people, he argued.

It was his contention that decision of the Board of Directors and
the Admin order 40&41 and the Mandatory Early Retirement Scheme
were without lawful authority and in contravention of the Pakistan
International Airline Corporation Act of 1956.

The orders of compulsory retirement were also opposed to the
principle of natural justice inasmuch as no show-cause notice or
opportunity of hearing was provided to the appellant before passing
the impugned order which was also a blatant violation of settled
law in this regard as also of article 3 of the PIAC (Suspension of
Trade Unions and Existing Agreements) Order 2001, which was
circulated by the General Manager Human Resources of the

The impugned scheme, he contended, was being implemented in a
highly discriminatory manner, claiming that Khursheed Anwar, Chief
Operating Officer, who was nearly 65 years of age had been recalled
from retirement.

* Five positions of general managers had been reintroduced at
foreign and domestic stations without any consideration of
increasing manpower costs.

* Two new directors were introduced which had resulted in immense
increase in expenses at the senior management level.

* Certain operating captains had been accommodated in ground jobs
as general managers.

The contention of the appellant of having been seriously
discriminated against was further fortified from the following
cases, which also established beyond any doubt the mala fide of the
respondent No 1:

1. Mr. Rasheed-ul-Hassan, (Director Manager Customer Service
Department) who is now functioning as Director Flight Service
despite falling in the age and/or Length of service limits
prescribed by the Scheme.

2. Azeem Zafar, (General Manager Customer Service Department) who
was even without a port folio (OSD) at the time of the appellant's
retirement is now adjusted as General Manager - Air Port Hotel,
despite following in the age and length of service limits.

3. Farooq Shah (Director Marketing) both junior to the appellant
with less qualification and experience falling in the age and/or
length of service limits is not retired which also goes against the
principle "last come, first go."

4. Wasim Bari (Director Cargo) both junior to the appellant with
less qualification and experience falling in the age and/or length
of service limits is not retired which also goes against the
principle "last come, first go."

While setting aside the above orders, order for the reinstatement
of the appellant to the post he was holding at the time of passing
the impugned order should be passed.

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