------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 25 May 2002 Issue : 08/21 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Pakistan successfully test fires Hatf V (Ghauri) missile + Pakistan to test missiles + Musharraf hopes sanity will prevail + Parties reject army role in future + Qazi demands full-time COAS + Troops shifted from Afghan border: US + US not asked to vacate bases: Nisar + Troops being recalled from Sierra Leone, says Memon + Contingency plan for Capital prepared: Border tension + Pakistan asks UN to intervene: War-like situation + Pakistan prepared to match attack + Warships move as Vajpayee warns of 'decisive fight' + Pakistan, India close to war, says Musharraf + Government warns of war if India strikes + Sufficient armaments available: Gen Qayum + Musharraf invites political leaders + Pakistan hopes India will resume talks + New Delhi goes on warpath: Fresh attack on army in Kashmir + Artillery shelling matched: ISPR + 8,000 troops deployed along tribal belt + Restrictions on movement in border areas + Mly ready to meet any challenge: ISPR + Islamabad recalls HC from Delhi + APC warns India against aggression + Prosecution drops main witness: Daniel Pearl case + Prosecution drops 13 witnesses in Pearl case + Pearl case: samples being sent to Lahore + Phone record was tampered with, claims defence: Pearl case + APHC leader Lone gunned down + SHC restores Bhopal House to owners + National govt demanded + PPP alleges Benazir denied right to defence + Judgment on SGS appeal reserved + Benazir declared PO in SGS case + PPP to oppose constitutional amendments, says Asif + Gool Minwalla passes away + One killed following attack on procession: 40 vehicles torched --------------------------------- BUSINESS & ECONOMY + Pakistan loses $100 million in Investment Protection Treaties + Growth rate decline propels poverty: Shaukat + MoU signed for promotion of IT industry + Over Rs10,000 RTCs banned + HBL sell-off to complete by October + What Pakistan should seek: trade or aid? + KSE index up 135 points on massive buying + Trading suspended on KSE + Stocks slump by 71 points as war fear mounts + Stocks crash on war fear: Index loses 132.5 points --------------------------------------- EDITORIALS & FEATURES + Truth about Bhopal House Ardeshir Cowasjee + Rising peril, stricken leadership Ayaz Amir + Mideast peace prospects Henry A. Kissinger ----------- SPORTS + PHF guilty of hockey's downfall in Pakistan + Waqar be named captain for World Cup + Ahmad explains decision to return + Isolation of Pakistan unjustified

Pakistan successfully test fires Hatf V (Ghauri) missile
ISLAMABAD, May 25: "Pakistan today carried out a successful test 
fire of its indigenously developed medium range surface to surface 
ballistic missile Hatf V (Ghauri)," said an official statement. 

This was the third test of Ghauri missile system. According to 
the data collected from the test all the design parameters have been
successfully validated. "The Ghauri can carry warheads with great 
accuracy," the statement said. 

President Pervez Musharraf "has congratulated the scientists, 
engineers and all others involved with the program on their 
outstanding success which is a source of pride for the nation. 

The series of tests are a part of the research and development of 
Pakistan's indigenous missile program, which is an essential element 
of Pakistan's policy of maintaining minimum deterrence in the 
interest of our security."It demonstrates Pakistan's determination 
to defend itself, strengthen national security and consolidate 
strategic balance in the  region."

The missile was fired in northern Pakistan, a security officer said,
adding: "Hatf-V can be tipped with any warhead. Any ballistic 
missile can carry a nuclear warhead."

He said the missiles had a range of between 1,500 and 2,000 
kilometres (about 900 and 1,200 miles).-AFP 

Pakistan to test missiles
ISLAMABAD, May 24: Pakistan has notified India that it will conduct 
missile tests from this weekend, officials said.

"Yes, Pakistan has notified a number of countries about this, 
including India, Iran and the United States, as is the practice," a 
government spokesman said.

"It has nothing to do with the current situation. We have not 
undertaken tests, while India has been taking such tests."

The spokesman did not say when the tests would be carried out, but 
an official source told AFP they would be done from 25th to 28th of 

India confirmed it had been informed by Pakistan that it planned to 
conduct "routine" short- and medium-range missile tests. "We have 
been informed by Pakistan that it plans to carry out a series of 
missile tests comprising short- and medium-range missiles, and that 
appropriate notifications have been issued for these tests, which 
are scheduled for May 25 and 28," a statement by the Indian 
external affairs ministry said. "This is routine and not central to 
the current situation," the statement added.- AFP

Musharraf hopes sanity will prevail
ISLAMABAD, May 24: President Gen Pervez Musharraf described the 
current standoff between India and Pakistan as "dangerous," but 
hoped good sense would prevail on both sides to defuse tension.

"But, certainly, the tensions are high and it's dangerous because 
India has massed its troops on the border - army, navy and air 
force. So, they have the capability of undertaking any adventurous 
act," he said, vowing to defend every inch of the motherland, if 

The president said this responding to a question about chances of 
all-out war breaking out by Riz Khan in BBC World's 'HARDtalk 
Pakistan,' aired in the evening.

Musharraf hoped war would not break out. "Nobody - no sane person 
would like to go to war."

Asked how far he was willing to take the fighting, he declared in 
categorical terms: "If we are attacked, we'll certainly defend all 
the way, with all our might. We certainly would defend every inch 
of Pakistan."

Responding to a question about the success of diplomatic means to 
defuse tension, Musharraf said: "We hope that first of all good 
sense prevails on both sides between India and Pakistan." Moreover, 
he said, the United States is playing a role and "all that I would 
like to say is that we would like to cooperate, certainly, because 
we don't want war." But, the president warned, "let war not be 
thrust on us, then we will defend."

Parties reject army role in future
Staff Reporter

LAHORE, May 24: Representatives of various political parties and 
civil society organizations have reached a consensus on a minimum 
18-point agenda on future democratic process in the country with a 
pledge that they would not accept constitutional amendments nor the 
national security council contemplated by President Pervez 

The consensus was reached at a one-day consultation on "Democratic 
values and obligations of political parties" arranged by the Human 
Right Commission of Pakistan at its Aiwan-i-Jamhoor, with the HRCP 
chairman Afrasiab Khattak in the chair. Former HRCP chairperson 
Asma Jahangir was also present.

The agreed minimum agenda will be now approved by the central 
executive committees of the political parties.

The political parties represented at the consultation included 
Pakistan People's Party, PPP(SB), Pakistan Muslim League (N), Awami 
National Party, National Workers Party, Balochistan National 
Movement, Labour Party of Pakistan, Seraiki National Party, 
Pakhtoonkhwa Milli Awami Party.

After a day-long discussion the meeting issued the following agreed 
minimum agenda;

1. Political parties will not accept any constitutional formula or 
amendments presented by Musharraf government to give the armed 
forces any 'stake holding' role in the future political setup and 
they would reject the national security council.

2. They will not directly or indirectly invite the military to take 
over power from an elected government.

3. Each party will appoint an "inter-party coordinator" for 
dialogue with other parties.

4. They will play their role in next parliament and legislate on 
independence of judiciary.

5. They will set up sub-committee in the parliament to issue a 
white paper on the interference and the role of intelligence 
agencies in politics and make them accountable to the parliament. 
They also demanded dissolution of the present election commission 
and appointment of an independent commission and accountability 

6. They will take measures to eliminate terrorism, sectarianism, 
violence and gunpoint culture. They will also bring enlightened 
changes in education curricula to raise a new generation inspired 
by humanism, peace, tolerance and honest inquiry.7. They demanded 
an interim caretaker government for conducting the elections.

8. They will ensure maximum provincial autonomy and redress 
grievances of federating units, dispensing with the concurrent list 
of subjects in the Constitution.

9. They will give legal protection to the institution of local 
bodies, the elections of which will be held on joint electorate and 
party basis by the federating units.

10. They will ensure parliament's approval of all public 
expenditure including defence expenditure, all treaties, 
agreements, financial or otherwise, negotiated with foreign 

11. They will ensure enforcement of freedom of information law, 
amendments in the National Archives Act and all other laws 
restricting the freedom of expression, the press and electronic 

12. They will check the misuse of exit control list (ECL) and 
repeal arbitrary laws of detention like the Maintenance of Public 
Order (MPO) Ordinance.

13. They will ensure freedom of religion and oppose religious 

14. They wail repeal all laws discriminating against women, 
children, working people, minorities and special days would be 
reserved in the parliament to address their problems.

15. They will promote a culture of tolerance, free debate, respect 
for difference of opinion and consensus building on major issues in 
public interest.

16. They will encourage the state to create a fund for the proper 
functioning of political parties and education of their cadres.

17. They will take steps to eradicate crimes committed with 
impunity against women, minorities or religious sects and other 
marginalised sections of society.

18. They will take steps to de-politicise the bureaucracy and armed 
forces to make them truly professional.

Qazi demands full-time COAS
Staff Reporter

ISLAMABAD, May 23: Chief of Jamaat-i-Islami, Qazi Hussain Ahmed, 
said that talks with the government are only possible if President 
Gen Pervez Musharraf appoints a full-time chief of army staff 
(COAS) and takes the nation into confidence to face a possible 
break out of war with India.

In a statement issued here, Qazi Hussain said that if it was the 
duty of the religious parties to produce patriotism and national 
spirit among the people, it was the duty of the government to 
create an atmosphere conducive for talks and take measures that 
could help in creating harmony and solidarity in the society.

He asserted that if India could adopt an aggressive policy of 
crushing Kashmir's freedom movement with its military might and 
declare Kashmir its integral part, why couldn't the government 
announce its unequivocal support to Kashmiris' right to self-

The JI chief observed that the whole world had recognized Kashmir 
as a disputed territory and that its future could only be decided 
on the basis of the United Nations Security Council resolutions 
which promised the people of Kashmir their right to self-
determination through a plebiscite.

Qazi said, Indian stand of declaring Kashmir as its integral part 
and its continued repression in occupied Kashmir had prolonged the 
issue for more than five decades and they were the real concerns 
for the people in the region. He asked Gen Musharraf to take the 
public into confidence, send the army officials to their respective 
units from civil departments, and categorically announce that the 
general elections would be held in October.

He also demanded dismissal of the chief election commissioner and 
appointment of a non-controversial person to replace him.

Troops shifted from Afghan border: US
Staff Correspondent

WASHINGTON, May 24: US Defence Secretary Donald Rumsfeld confirmed 
here that Pakistan has moved some troops away from its border with 
Afghanistan to its border with India since the escalation of 
tensions between New Delhi and Islamabad.

Addressing a briefing at the Pentagon, Mr Rumsfeld said the current 
crisis in the subcontinent had already altered the number of 
Pakistan troops on the western border.

The chief of Central Command, Gen Tommy Franks, who is in overall 
charge of the coalition operations in Afghanistan, was aware of 
that development. Appropriate steps would be taken "if and when" 
additional Pakistani troops left the western theatre, Mr Rumsfeld 

There were contingency plans on the shelf, and the US was ready to 
respond to any development.

US not asked to vacate bases: Nisar
Staff Reporter

ISLAMABAD, May 23: Pakistan is not asking the United States to 
vacate military bases due to increasing threats of war with India, 
said Minister for Information Nisar Memon.

"Pakistan is fully cooperating with the United States against 
terrorism and we have not asked the Americans to vacate our 
military bases", he further stated.

Briefing reporters he however, said that Pakistan has decided to 
call back its one brigade of peace-keeping forces from Sierra Leone 
due to increasing threats of war and hostile statements of the 
Indian leaders.

Responding to a question, he said that Pakistan might remove its 
troops from the western borders, "but it will affect our coalition 
partners who are engaged in fighting against terrorism".

Troops being recalled from Sierra Leone, says Memon
Staff Correspondent

SIALKOT, May 23: Pakistan was calling back its troops sent for UN 
peace mission in Sierra Leone in the wake of aggressive statements 
of war by the Indian leadership. This was stated by Federal 
Information Minister Nisar Memon while talking to newsmen.

He said that Gen Pervez Musharraf had formally requested UN 
Secretary-General Mr Kofi Annan in this regard. "We are facing 
threats from within and outside the country and are in immediate 
need to call back our troops from the UN peace mission to defend 
our boundaries," he added.

Talking to newsmen at the local Press Club later, he said Pakistan 
wanted peace and de-escalation in the region, but ready to go all 
out if India attacked.

He voiced his concern over threatening and aggressive statements by 
Indian leadership that it was time for a 'decisive war'.

All differences between Pakistan and India, including Kashmir, 
should be resolved through bilateral talks and other peaceful means 
as provided in the UN charter. He asked the international community 
to "impress upon India the dangers inherent in the explosive 
situation created as a result of Indian belligerence."

Replying to a question, the minister reiterated the government 
stance that no organization in Pakistan would be allowed to indulge 
in terrorism in the name of Kashmir.

Contingency plan for Capital prepared: Border tension
By Syed Irfan Raza

ISLAMABAD, May 23: A master contingency plan for the federal 
capital has been prepared to meet any emergency situation in view 
of the heightened tension between India and Pakistan, a source told 

All the departments working under the Islamabad Capital Territory 
administration have been directed to update their plans to cope 
with any emergency if war between India-Pakistan starts. These 
directives were given by the deputy commissioner, Tariq Mahmood 
Khan, who is also controller of the Civil Defence Organization, 
after attending a high-level meeting.

The source said in view of emergency, special passes would be 
issued to the residents of Islamabad and stickers would be given 
for their vehicles so that they could move in the city without any 

Screening and search of every person and vehicle would be started 
and no vehicle without stickers will be allowed to ply on roads. 
The plan said the entire capital city could be sealed and nobody 
would be allowed to enter the city.

The meeting, which was attended by assistant commissioners and 
heads of various public service departments, was informed that many 
departments have already updated their contingency plans.

Mr Khan directed the assistant commissioners and magistrates to 
check the operational preparedness of the departments.

The source said various public utility departments, like Civil 
Defence Organization, Islamabad Electric Supply Company (Iesco), 
Capital Development Authority, government hospitals, Pakistan 
Telecommunication Company Limited, Sui Northern Gas Pipelines 
Limited (SNGPL), educational institutions, PTV, Radio, have been 
asked to present their plans at a meeting scheduled for May 27.

The district food department has been directed to make effective 
measures to maintain sufficient stock of consumer items so that in 
case of war, smooth supply of food essential items to the people 
could be ensured. Similarly, the concerned authority has been asked 
to ensure availability of petrol and other fuels.

A committee, headed by Assistant Commissioner Tariq Javed Malik, 
has been assigned to ensure supply of food and fuel.

The administrations of three major hospitals - Pakistan Institute 
of Medical Sciences (Pims), Federal Government Services Hospital 
(FGSH) and Capital Hospital (CH) - have been asked to prepare their 
contingency plans, arrange extra beds and adequate medicines and 

The district health officer, Dr Zafar Lodhi, has started 
coordination with all hospitals of the city to update their plans.

The assistant commissioner, rural, has been asked to coordinate 
with all concerned departments to ensure the availability of 
vehicles for special duty.

A control room has been established in the office of the additional 
deputy commissioner (general) to liaison with and coordinate among 
different departments.

It was decided at the meeting that schools and colleges will be 
closed in case of war and relief camps would be established in 
various institutions. It was also decided that no official of the 
ICT administration will go on leave without the permission of the 
CDO controller.

The meeting was informed that the civil defence department has made 
an elaborate arrangements for holding fire fighting demonstrations 
at various public places. All volunteers of the department have 
been activated both in urban and rural areas of the capital.

Rehearsal of first aid and rescue operations will also be held to 
educate citizens about protective measures.

The meeting was informed that refresher courses of civil defence 
was being organized in educational institutions and hospitals.

Under the plan III-Brigade will take over the federal capital in 
case of emergency and extra police force would also be called out 
in the city from other areas. Similarly, all police personnel now 
deputed on the security of diplomats, government officials and 
other important persons would called back and deployed in the city.

Pakistan asks UN to intervene: War-like situation
Staff Reporter

ISLAMABAD, May 23: Pakistan sought the United Nations intervention 
for restraining India from warpath and bringing it to the 
negotiating table for defusing the present volcanic situation in 
the region.

In a letter written by Foreign Minister Abdul Sattar to the UN 
Secretary-General and the President of the Security Council, the UN 
General Assembly and the Security Council have been asked to 
intervene to avert an imminent armed conflict between two nuclear-
armed neighbours.

The letter draws the attention of the UN Secretary-General and the 
President of the Security Council to the explosive situation 
resulting from the massive Indian deployment along the 
international border with Pakistan, the working boundary and the 
Line of Control in Kashmir.

In the letter, the foreign minister says: "For the past five 
months, dangerous tensions have been whipped up in South Asia. 
India has moved forward and deployed nearly one million troops in 
battle position along the international border with Pakistan, the 
Working Boundary and the Line of Control in Kashmir.

"Despite the hundreds of thousands of troops it has stationed and 
the sophisticated devices it has deployed along the Line of 
Control, India accuses Pakistan of infiltration across the LoC. In 
making uncorroborated charges, India refuses to submit its 
allegations to monitoring by UNMOGIP or impartial surveillance and 

"It disallows free access to international media and international 
human rights organizations in the occupied Kashmir that can 
independently assess the real situation in the territory. India 
also asserts that it will know when the alleged infiltration 
ceases, thus, arrogating to itself the role of the accuser and the 

The foreign minister further says that the Indian leadership 
routinely blames Pakistan for every violent incident inside India 
and in occupied Kashmir.

"Some ruling BJP leaders have been accusing Pakistan even of the 
carnage in Gujarat, even though the Indian political opposition as 
well as local and international human rights groups placed the 
responsibility squarely on Hindu fanatics belonging to extremist 
organizations like the RSS - the parent body of the ruling BJP - 
VHP, Bajrang Dal and Shiv Sena."

The letter says the same attitude has been adopted by the Indian 
government on the incidents of violence inside occupied Kashmir. 
Whether it was the Chitisingpura incident in March 2000, or the 
Amaranth Yatra killings later in the year, the Indian authorities 
always put the blame on Pakistan.

"Such false accusations malign the Kashmiri freedom struggle and 
are part of a propaganda strategy to perpetuate Indian occupation 
of the state. According to All Parties Hurriyat Conference over 
75,000 Kashmiris have been massacred by Indian military, 
paramilitary and police forces," says the foreign minister.

"India not only refused impartial international inquiries into 
these and other similar cases but also abandoned its own 
investigations when it began to appear that these murders may 
actually have been staged by Indian forces. The case of tampering 
with the DNA tests of innocent Kashmiris, killed as terrorists 
responsible for the Chitisingpura massacre, is too well-known to 
bear repetition," says the letter.

In the letter, the foreign minister emphasizes the need for the 
United Nations and international community to advise India to 
choose the path of negotiations, adding that Pakistan is ready to 
cooperate with the United Nations or the international community 
for reducing tension, preserving peace and promoting dialogue 
between the two countries.

Pakistan prepared to match attack
Staff Reporter

ISLAMABAD, May 22: Government said it was prepared to defend itself 
against any Indian attack, but called for negotiations and vowed to 
maintain a crackdown on terrorism.

A joint meeting of the cabinet and the National Security Council 
expressed deep concern over the danger posed to the regional and 
international peace by the Indian deployment of troops on 
Pakistan's borders and the Line of Control as well as threatening 
and aggressive statements by the Indian leadership.

The meeting underlined the need for de-escalation of tension and 
pullback of troops on both sides to their peace time locations. It, 
however, expressed the determination of the people of Pakistan to 
defend the country against any aggression or misadventure by India.

According to an official announcement, the ministers and members of 
the NSC supported the government's policy to work for defusing 
tension with India while remaining fully prepared and vigilant to 
meet any contingency resolutely and with full force.

The meeting called on the international community to impress on New 
Delhi the dangers inherent in the explosive situation created as a 
result of Indian belligerence and obduracy.

The meeting decided that the government would not allow the 
territory of Pakistan, or any territory whose defence was the 
responsibility of Pakistan, to be used for any terrorist activity 
anywhere in the world. It reiterated that no organization in 
Pakistan would be allowed to indulge in terrorism in the name of 

The cabinet and the NSC agreed that all the differences between 
Pakistan and India, including the core issue of Jammu and Kashmir, 
should be resolved through bilateral negotiations or other peaceful 
means as provided in the UN Charter. In this context, they stressed 
the need for comprehensive dialogue between the two countries. 
However, the meeting declared that Pakistan would continue to 
extend moral, political and diplomatic support to the legitimate 
struggle of the people of Jammu and Kashmir for the realization of 
their right to self-determination in accordance with the UN 

The meeting discussed the government's campaign against extremism 
and terrorism. It recalled the president's landmark address to the 
nation on Jan 12 and reaffirmed the policy decisions announced by 

The meeting expressed shock and sorrow over the assassination of 
Abdul Gani Lone, a veteran leader of the Kashmiri freedom struggle. 
It condemned this heinous act of terrorism against the leadership 
of the All Parties Hurriyat Conference. It called for an impartial 
inquiry into the murder.

Warships move as Vajpayee warns of 'decisive fight'
NEW DELHI, May 22: Indian Prime Minister Atal Behari Vajpayee told 
Indian soldiers confronting Pakistani forces across the Line of 
Control (LoC) that the time had come for a 'decisive fight'.  
Although he did not spell out who the fight would be against, he 
said his visit to frontline troops at a time of high tension with 
Pakistan should be seen as a signal.

"Whether our neighbour understands this signal or not, whether the 
world takes account of it or not, history will be witness to this. 
We shall write a new chapter of victory," he told soldiers in 
Kupwara, in occupied Kashmir.

"Let's work for victory. Be prepared for sacrifices. But our aim 
should be victory. Because it's now time for a decisive fight."

WARSHIPS MOVE: Meanwhile, a defence official said India's navy is 
reinforcing its western fleet in the Arabian Sea with five warships 
from the eastern fleet. "The warships have been moved to increase 
the level of preparedness on the western sector, keeping in view 
the nation's security concerns and the operational situation," a 
navy spokesman said.

The spokesman said the ships - a destroyer, a frigate and three 
missile corvettes - would reach the west within a week.

The western fleet is based in Mumbai and its operational area 
covers the Arabian Sea and the rest of the Indian Ocean. The navy 
has a total of 140 ships.

Pakistani and Indian troops sides have exchanged heavy mortar and 
machinegun fire across the LoC since Friday, forcing hundreds of 
villagers to move to safety. - Reuters

Pakistan, India close to war, says Musharraf
By Aamer Ahmed Khan

ISLAMABAD, May 22: Describing the situation on Pakistan's eastern 
borders as "grim," President Gen Pervez Musharraf said that 
Pakistan and India were closer to war than they had been at any 
time since the Dec 13 attack on the Indian parliament.

The aggressive Indian rhetoric, said the president, had come in the 
wake of complete operational capability on the part of India which 
was why it could no longer be dismissed as mere rhetoric. However, 
he added, Pakistan armed forces were fully prepared to meet any 
threat and were capable of matching all forms of Indian aggression.

President Musharraf was speaking at a meeting with editors and 
senior journalists in the morning. Soon after the meeting, he went 
into a closed door joint session of his cabinet and the National 
Security Council.

Moving on to the national political scene, he said it was because 
of the tense border situation that he had decided to invite all 
political parties for a consultative meeting.

He said he was dismayed by the refusal of the ARD (Alliance for 
Restoration of Democracy) and the MMA (Muttahida Majlis-i-Amal) to 
attend the all parties meeting he had called because it was a 
genuine initiative given that he was least interested in retaining 
power after the October elections. "In fact," he said, "I now want 
to shed power. I wish there was an elected prime minister to take 
the crucial decisions that need to be taken at this juncture."

Explaining his concept of power, he said he wanted to shed the 
powers of the chief executive which ought to rest entirely with the 
prime minister. Musharraf said he was least interested in a 
figurehead prime minister and wanted a premier who wielded complete 
power to govern. However, he added, the setup he wanted to create 
would revolve around a system of checks and balances in which no 
one - the Prime Minister, the President or the Chief of Army Staff 
- could act arbitrarily.

This, he said, was possible only if the powers vested with each of 
these individuals were "diluted through an institutional mechanism 
such as the National Security Council." The president said his 
government was confident that it would finalise the required 
constitutional amendments for the purpose within one month at the 
most. However, he added, the basic character of the Constitution 
would remain the same.

Musharraf said the intense diplomatic activity currently under way 
was evidence of the world's desire to prevent a war between the two 
nuclear-armed neighbours in the subcontinent.

Dismissing suggestions that the US was not entirely happy with the 
efforts made by his government, he replied that such reservations 
were limited to the western media and were not shared by the 
western governments. If there was any difference, it was only on 
emphasis, he added.

Explaining, the president said Pakistan was more concerned with the 
local sectarian terror networks than by Al Qaeda or what India 
refers to as "cross-border terrorism." The West, on the other hand, 
was focussed entirely on the latter. Despite this difference in 
perception, Musharraf said, western governments were completely 
satisfied with Pakistani cooperation.

SECURITY OFFICIALS: As part of the background to the presidential 
briefing, top security officials told newsmen that a two-kilometre 
strip all along the Line of Control (LoC) had been under intense 
Indian firing since May 17. Over 16,000 light and medium artillery 
shells had been fired by the Indian forces in the past five days, 
resulting in 20 deaths and 129 injuries. Pakistani military 
casualties currently stood at five dead and 30 injured.

Meanwhile, the security officials said India had taken its military 
build-up in the Indian held Kashmir to unprecedented levels by 
completing the deployment of two more mountain divisions in the 
valley. The latest deployment raises the number of Indian military 
and paramilitary forces in the valley to over 700,000.

Security officials said India was quite likely to carry out air 
strikes in Azad Jammu and Kashmir, possibly backed by a limited 
ground offensive. However, President Musharraf warned, even in the 
case of a limited offensive, the situation could quickly spiral out 
of control.

Security officials further said Pakistan was ready to pull back its 
forces from the western front if required and was even prepared to 
recall its troops currently serving in places such as Sierra Leone. 

They said Pakistan's western allies in the US-led war on terror had 
been informed of the possibility.

Government warns of war if India strikes
ISLAMABAD, May 21: Pakistan warned that any cross-border action by 
India would provoke retaliation, and analysts predicted that it 
could trigger a wider conflict between the nuclear-armed neighbors.

Military spokesman Maj-Gen Rashid Qureshi told AFP: "Any incursions 
into Pakistani territory or Azad Kashmir will be responded to and 
met with full force."

Analysts say signals from New Delhi indicate the Indian government 
is determined to launch limited strikes on alleged militant camps 
in Azad Kashmir.

"If that happens it will definitely provoke a retaliation by 
Pakistan and the situation can spin out of control," political 
commentator Khalid Mahmood of the Institute of Regional Studies 
told AFP.

Sufficient armaments available: Gen Qayum
Staff Reporter

ISLAMABAD May 21: Lt Gen Abdul Qayum, Chairman of Pakistan Ordnance 
Factories reassured the nation that sufficient stocks of 
conventional arms and ammunition would be available in the event of 
a full-scale war with India.

In an informal chat with newsmen at the National Assembly premises 
Gen Qayyum, however, made it clear that Pakistan, being a civilised 
state, would like that reason prevailed on part of India and 
expressed the hope that it will shun the war-mongering posture.

He expressed his confidence that there would be no full-scale war 
for India was also aware that it would be equally disastrous for 
New Delhi if it launched offensive against Pakistan.

"When Pakistan pleads for peace it does not mean it is doing it 
because of weakness but it is a norm which is internationally 

So far as the preparedness of the armed forces in terms of 
conventional arms supplies was concerned, he said such preparedness 
was made during peace times which had been achieved already.

Replying to a question he said sufficient amount of arms and 
ammunition as required by formation commanders was available on 
various fronts and sectors and pace of production had naturally 
been accelerated according to the growing demand.

He opined that India, in the first place, would not resort to make 
any adventure and would try to make incursion inside some 
vulnerable parts of Azad Kashmir in hot pursuit, but it would have 
assessed by now that there was no dearth of courage as far as armed 
forces or the people living on bordering areas was concerned.

Gen Qayum said that the incident which took place in Jammu on the 
basis of which India was creating a war hysteria, was an indigenous 
one which could not have masterminded by Pakistan since its fallout 
was going against its own interests.

Musharraf invites political leaders
By Faraz Hashmi

ISLAMABAD, May 20: President Gen Pervez Musharraf decided to 
consult a cross-section of people, particularly political leaders, 
to take the nation into confidence about the situation arising out 
of unprovoked Indian shelling along the Line of Control and the 
Working Boundary.

Dawn officially learnt that apart from a meeting with politicians, 
a joint meeting of the cabinet and the National Security Council, 
and a consultative session with the editors of national dailies had 
also been lined up by the president's secretariat for Wednesday.

"Invitations are being extended to all the political parties and 
groups," said Information Secretary Anwer Mehmood when asked about 
the parties and political leaders being invited for consultation.

There would be no exception, said Mr Mehmood when asked whether any 
party would be left out.

On all previous occasions, including the president's pre-Agra 
summit interaction with political leaders and other people, the 
PML(N) has not been invited, apparently to deny any official 
recognition to the former ruling party.

All other parties, including the ARD, have received the official 
invitation. But, till late Monday, the PML(N) had received no 
invitation from the government.

PML(N) chairman Raja Zafrul Haq said that the Alliance for 
Restoration of Democracy had decided to take a collective decision 
on the issue of accepting the invitation.

ARD leader Nawabzada Nasrullah Khan has established contacts with 
other ARD leaders and the Jamaat-i-Islami chief, and reached an 
understanding with them to take a joint decision whether to accept 
or reject the invitation.

At its last meeting, the ARD had imposed a discipline on all the 
component parties not to accept individual invitations of meetings 
with the president.

JI chief Qazi Hussain Ahmed was approached personally by the 
Principal Secretary to the President, Tariq Aziz, for extending 
invitation to him, a political source said.

Tehrik-i-Insaaf leader Imran Khan, Millat Party chief Farooq Ahmed 
Khan Leghari and pro-government faction of PML (Quaid-i-Azam group) 
were included in the list of invitees.

Pakistan hopes India will resume talks
By Hasan Akhtar

ISLAMABAD, May 20: Pakistan said that the international community, 
despite some setbacks in its recent efforts, was working for de-
escalation of tension with greater vigour and pressing both sides 
to come to the negotiating table.

Foreign ministry spokesman Aziz Ahmad Khan averred that the 
international community was fully cognizant of the seriousness of 
the heightening tension.

Owing to the international diplomacy coupled with the reinforced 
efforts by the United Nations, he said Islamabad hoped that Delhi 
would see reason and resume dialogue on all contentious issues and 

In reply to suggestions from reporters to "press" the United States 
to compel India for reducing tension and withdrawing troops from 
borders, the spokesman pointed out that the recent visit by 
Assistant Secretary of State Christina Rocca was basically aimed at 
securing de-escalation in tension and gradual withdrawal of forces 
from borders. The spokesman further said that Deputy Secretary of 
State Richard Armitage would also visit the region soon for the 
same purpose.

He said that Pakistani ambassador in the United Nations had been 
keeping the world body and its secretary-general as well as the 
president of the Security Council abreast of the developments in 
the worsening South Asian scenario.

The spokesman advised the reporters to refer their questions about 
the war-like situation on the Line of Control to the ISPR, but he 
confirmed that heavy guns were exchanging fire for the last few 

In reply to a question whether troop engagement on borders with 
Afghanistan at the time of the heightened activity on the eastern 
border was desirable, the spokesman said the government was fully 
alive to the security requirements and emphasized that the defence 
forces were capable of meeting any eventuality. 

Pakistan, he said, would continue to play its role in the fight 
against terrorism on the Afghanistan front. Referring to Indian 
allegations of cross-border movement between the divided parts of 
Jammu and Kashmir, the spokesman recalled that Pakistan had offered 
deployment of independent international monitors on both sides of 
the Line of Control to confirm the Indian allegations but, he 
added, New Delhi had declined to accept the offer.

As regards a recent statement of Chris Patten, European Union's 
external affairs chairman, suggesting that referendum was a 
deviation from the road-map given out for Pakistan's return to 
democracy, the spokesman said that Mr Patten was perhaps not fully 
briefed on the referendum issue. In fact, he asserted, referendum 
had reinforced the president's resolve to restore democracy.

Asked for comments on an APC's call for the installation of an 
interim setup composed of all parties to meet the mounting Indian 
challenge, the spokesman said it was not for the foreign ministry 
to respond to internal issues. He, however, added that the present 
government had been functioning "very well and properly" and was 
cognizant of what is required of it. He hoped that political 
parties would extend "solid support" to the government in this hour 
of national crisis.

The spokesman said that as of now he was not aware of any change in 
the scheduled meeting of the Indus basin commissioners of Pakistan 
and India on May 29. However, he said, in case the meeting could 
not be held as stipulated once every year, the Indus Basin Treaty 
provided means to redress. He pointed out that the treaty was a 
bilateral agreement and guaranteed by international guarantors. 

New Delhi goes on warpath: Fresh attack on army in Kashmir 
NEW DELHI, May 19: The Indian government went on the warpath 
following a second attack on an army camp in occupied Kashmir in 
less than a week, announcing an increased mobilization and warning 
that it would match Pakistani firepower.

Foreign Minister Jaswant Singh also announced, at the end of a 
meeting between Prime Minister Atal Behari Vajpayee and his 
security advisers, that India was reconsidering Pakistan's Most 
Favoured Nation status.

Under the increased mobilization, India's paramilitary forces 
operating in occupied Kashmir will be transferred from the command 
of the interior ministry to the army, and the coast guard will be 
placed under the command of the navy.

Military experts said the move would add muscle to India's million-
plus army as well as crank up the country's war machine for rapid 
response in case of conflict with Pakistan.

"If any artillery fire comes on our forces from across the border 
then they will be immediately retaliated," Singh said.

Artillery shelling matched: ISPR
By Arshad Sharif

ISLAMABAD, May 19: Pakistan has repulsed the use of heavy artillery 
by the Indians along the LoC and the working boundary during the 
past two days, director general ISPR, Major General Rashid Qureshi 
told Dawn.

The Indians have escalated the tensions by using heavy artillery 
and directly attacking Pakistan along the working boundary, 
resulting in civilian casualties, the president's military 
spokesperson said.

He said Pakistan retaliated the fire on Indian military targets 
and, unlike the enemy's act, did not target the civilians. He said 
India was directly and indirectly sabotaging the global war on 
terrorism by engaging Pakistan on the eastern borders.

He said India deliberately chose to escalate the border tensions, 
knowing full well that Pakistan, in league with the US-led 
coalition forces, was fighting the war on terrorism.

He said the global powers must question India on its recent actions 
which amounted to distracting an important coalition partner in the 
global war against terrorism. The Indian actions, he said, amounted 
to supporting the terrorists indirectly.

Pakistan does not want war, the DG ISPR said, adding the Kashmir 
struggle was indigenous against the brutalities of the Indian 
forces. Blaming Pakistan for their own ills would not solve the 
Indians' problems, he said.

Maj-Gen Rashid Qureshi said Pakistan was fully prepared to thwart 
any Indian designs against the integrity and sovereignty of 
Pakistan, adding the armed forces stood alert to defend each and 
every inch of the country.

8,000 troops deployed along tribal belt
By Qudssia Akhlaque

ISLAMABAD, May 19: More than 8,000 Pakistani army troops have been 
deployed in the tribal belt of Waziristan to check infiltration of 
Taliban and Al Qaeda men and to capture those who may have taken 
refuge there, sources told Dawn on Saturday.

Pakistani authorities won their right to patrol the 'no-go areas' 
of Waziristan in their biggest US anti-terror operation within 
Pakistan on the condition that Americans will not be directly 
involved in the ground attacks and that the government will 
immediately undertake billion-rupee development projects, these 
sources maintained.

Intelligence sources in Islamabad said more than 8,000 Pakistani 
troops were stationed last week in the North and South Waziristan 
agencies. Their mandate is to seal the porous border with 
Afghanistan which according to Pakistani authorities has 46 major 
crossing points including Torkham and Chamman. The unfrequented 
routes run in hundreds.

Informed sources disclosed these troops will conduct raids and 
ground attacks on targets identified by the American Central 
Command (CENTCOM) operations from Tampa (Florida) and cleared by 
the Pakistani military authorities. The CENTCOM is providing 
technical intelligence to direct this operation.

"The tribal leaders have not only permitted access to Pakistan army 
personnel but have also assured Islamabad of help in tracking down 
Al Qaeda and Taliban members who found refuge there," these sources 

Dawn also learned from officials involved in the operation that the 
tribal elders have given the government their commitment "that no 
one in the area would host any Al Qaeda or Taliban fighters."

The tribal leaders have stipulated a fine of Rs500,000 against any 
one affording refuge to Al Qaeda or Taliban suspects and have also 
informed all tribals that any house used to shelter Al Qaeda or 
Taliban suspects will be put on fire. 

Another intelligence source said that the numbers of Pakistani 
troops assigned the task was growing and that additional posts had 
been established only the other day for the additional Frontier 
Constabulary (FC) men called in to seal the border North and South 
of Waziristan.

The troops operating from inside Waziristan comprise a 3000-strong 
brigade with equal number of FC personnel, some 2000 army engineers 
and 100 commandos from the Special Services Group (SSG). Members of 
the army engineering corps will have the dual task of carrying out 
development work in the area and apprehending fleeing Al Qaeda and 
Taliban men.

The massive mobilization of troops in the area last week was on the 
insistence of Americans who believe suspected Al Qaeda and Taliban 
fighters are now re-grouping in the area, sources said on Saturday.

All operations are planned and coordinated by the Joint Staff 
Headquarters (JSH) in Rawalpindi with CENTCOM, the US Central 

The CENTCOM has been providing information with satellite maps and 
sketches of some suspected Al Qaeda and Taliban militants to 
concerned agencies in Pakistan based on its intelligence- gathering 

Based in Florida, CENTCOM is the United States security command for 
South, Central and South West Asia. A CENTCOM representative based 
in Islamabad provides lists of targets with maps in daily meetings 
at the JSH. The list is then forwarded to the concerned agencies 
who whet and verify information before it is relayed to the 
operational heads for combined covert action in pockets of tribal 

When queried about the level and nature of the US involvement in 
the Waziristan operations, the US embassy spokesman said a couple 
of days back that he was not in a position to comment. Instead he 
gave the CENTCOM contact number in Florida saying that since they 
were handling these operations it was best to talk to them.

Federal government sources say that the US authorities had 
requested Pakistan that their commandos be allowed to take part in 
the search and raid operations in the tribal belt and that American 
air power be deployed in the area but President Musharraf turned 
down the request.

These sources said that it was agreed between the Pakistan and US 
authorities that American presence will remain on the margins of 
tribal area and their role confined largely to technical 
intelligence, intelligence sharing and communications levels.

Restrictions on movement in border areas 
Staff Correspondent

SUKKUR, May 18: The military authorities have restricted the 
movement of residents in the border towns of Ghotki and Mirpur 
Mathelo due to alarming situation and tension between India and 

The decision was taken to stop the people from frequent movement in 
the border areas specially the residents were asked by the civil 
and military officials not to move frequently in the night time.

Mly ready to meet any challenge: ISPR
By I.H. Raashed

LAHORE, May 18: Pakistan has made "full military preparations to 
the extent required" to meet any war imposed by India. This was 
stated by ISPR Director-General Maj-Gen Rashid Qureshi while 
briefing senior journalists and columnists.

He said that India would think a hundred times before launching a 
full-scale war against Pakistan. "I think India will not launch a 
full-scale war, but there is a danger of Indian attack on Azad 
Kashmir and the Working Boundary," he added. He said that artillery 
fire which had stopped during the past one year or so had been 
resumed by India at the Line of Control and it was now hitting the 
civilian population.

Gen Qureshi, however, explained that he was not ruling out the 
possibility and probability of a full-scale war and "we are 
prepared to meet any threat."

He said that India had started medium artillery fire at about 8am 
on Saturday targeting the civilian population. There was intense 
shelling on Friday, and on Saturday India asked Pakistan to 
withdraw its High Commissioner from New Delhi though the diplomatic 
relations were still intact. All these events indicated that India 
wanted to aggravate the situation, he said, but warned "India must 
remember that Pakistan is not Palestine which can be easily 

He said that any attempt of hot pursuit by India across Azad 
Kashmir might also lead to a war. However, he pointed out, due to 
difficult terrain and mountainous region India was not in a 
position to make a thrust into Azad Kashmir where aircraft and 
tanks could not be used like occupied Palestine where Israelis were 
freely using such weapons.

Referring to the Jammu incident, Gen Qureshi debunked the Indian 
propaganda that Pakistan was involved in it. He asked why Pakistan 
should commit an action which would cause harm to it and benefit 
India? He said that India had no proof of Pakistanis' involvement. 

Recovery of mere chocolate wraps bearing "made in Pakistan" words 
could not be a valid proof. How could terrorists carry with them 
their identity symbols? he asked. Why would they fire on a 
passenger bus when they were on a mission to attack a military camp 
and why would they kill women and children?

Gen Qureshi was of the view that the bus had been hit by the firing 
of the Indian troops.

Islamabad recalls HC from Delhi
By Hasan Akhtar

ISLAMABAD, May 18: The Pakistan High Commissioner in New Delhi, 
Ashraf Jahangir Qazi, was recalled by the government on the demand 
of the Indian government.

The Indian demand came only a day after its parliament adopted a 
unanimous resolution, criticizing Pakistan for its support to 
alleged cross-border militancy which Islamabad has consistently 

A foreign ministry press release said that Pakistan had noted with 
disappointment the decision of the Indian government and added that 
Islamabad had accordingly decided to recall the high commissioner.

India had already recalled its high commissioner from Islamabad 
following an attack on the parliament house in New Delhi in 
December by five attackers who were killed in a shootout with 
security guards. India had blamed Pakistan for the attack which 
Islamabad had vehemently denied.

Pakistan had avoided taking any tit-for-tat step against the Indian 
decision and retained its high commissioner to continue to act 
though the government of India had virtually ceased to recognize 
his diplomatic representation and he was accused of maintaining 
questionable links with so-called Kashmiri separatists.

The press release said that despite the Indian demand for the 
recall of the Pakistan high commissioner, "the government of 
Pakistan will continue to work for complete normalization of 
diplomatic relations between the two countries".

Ashraf Jehangir Qazi is expected to leave his post in Delhi during 
this week, after having been in office for about four years.

APC warns India against aggression 
By Ashraf Mumtaz

LAHORE, May 19: An All Parties Conference on Sunday warned India to 
desist from committing any aggression against Pakistan as the 
democratic and patriotic forces were united like a rock to defend 
their country.

Leaders of over two dozen political and religious parties and some 
professional organizations said that in the interest of peace and 
stability of South Asia and to safeguard the future of the people 
of entire region, India should adopt the course of negotiations to 
settle all disputes with Pakistan on the basis of the principles of 
international law and the charter of the United Nations.

The APC, however, did not soften its resolve to pull down the 
military regime through a sustained struggle despite a tense 
situation on borders.

Through a resolution and a joint declaration adopted at the APC, 
fifth since the military takeover in October 1999, the participants 
said that the nation had completely rejected the stage-managed 
April 30 presidential referendum after which Gen Pervez Musharaf 
should immediately resign from all his "de facto" positions and 
hand over power to a neutral caretaker government which should 
unite the nation, face challenge posed by India and hold fair and 
free elections.

They called for the appointment of a full-time Chief of the Army 
Staff who could devote his attention to the country's defence and 
meet the threat to national security and territorial integrity.

ARD President Nawabzada Nasrullah Khan presided over the conference 
held at the Lahore Press Club. Parties in the ARD and the Muttahida 
Majlis-i-Aml were the major participants. Leaders of all the 
parties expressed their views before the finalization of the 
resolution and the declaration.

The ARD chief sidelined as hypothetical a question whether the APC 
leaders would participate in an APC the government is expected to 
hold in Islamabad on May 27 in view of the situation on the border. 
Same was his response when questioned if opposition parties would 
be prepared to hold talks with the government.

So far, the Nawabzada complained, Gen Musharraf had been taking all 
important decisions on his own and he had been inviting political 
leaders subsequently only to inform them.

When a reporter asked if demand for Gen Musharraf's resignation at 
such a critical juncture would not endanger the country's defence, 
the senior leader answered in the negative. There could be nothing 
better in the national interest, he argued. He said nobody was 
indispensable for the country and even Chamberlain had been 
replaced with Churchill right when the war was going on.

Maintaining that the threat of war loomed large and the country 
needed complete unity and a strong leadership, a resolution adopted 
by the APC said that having been rejected in the referendum by the 
people of Pakistan as well as the national and international 
intelligentsia, Gen Musharraf "stands discredited and lacks the 
stature and moral authority to deal with the current threat to 
national security and territorial integrity of Pakistan".

It said while India was poised to wage war on the eastern front of 
Pakistan, Gen Musharraf was using Pakistani troops to seal the 
western border with Afghanistan and conduct operations in tribal 

The resolution said that the Chief Election Commissioner, his 
colleagues who betrayed the nation, by becoming a party to the 
rigging of the referendum, must be removed and an independent and 
impartial new Election Commission should be appointed consisting of 
men of proven integrity.

It may be pointed out that the PPP was the only party which had 
welcomed the appointment of Justice (retd) Irshad Hasan as the CEC 
on the grounds that he had brought with him a treasure of 

The resolution sought an end to the ban on political activities. 
All political parties have the right to choose their own leadership 
and no party should be deprived of its leaders.

"All leaders should be allowed to freely take part in political 
activities to galvanize the nation to face the Indian challenge 
because wars cannot be fought unless the nation backs its armed 
forces", the resolution said in a clear reference to former prime 
ministers Benazir Bhutto and Mian Nawaz Sharif.

Appreciating the people for boycotting the presidential referendum, 
the APC also praised the Commonwealth, the European Union and the 
USA for not supporting the farcical exercise.

A truth commission will be set up to look into the instances of 
misuse of public funds by the local government functionaries to 
ensure the success of Gen Musharraf in the referendum.

The APC called upon the people of federating units from all walks 
of life to join hands for the revival of their sovereign will and 
the right to freely choose their elected representatives, 
restoration of human and social rights and jointly face the threats 
from internal and external dangers to people's life and national 
existence either by terrorism or foreign subjugation.

It demanded a clear election schedule, immediate revival of all 
political activities and human rights, level playing field for all 
political parties and their respective leaders, holding of free and 
fair elections under a neutral, autonomous, credible and powerful 
Election Commission formed with the approval of all political 
parties in place of the incumbents who must immediately resign for 
having violated their oath by "becoming an instrument of a rigged 

The APC rejected any arbitrary changes in the 1973 Constitution, 
mutilation of international democratic standards of elections, 
distortion of electoral laws, prohibitive changes in the Political 
Parties Act and restrictions on the parties and their leaders.

"We expect from the international community, the international 
human rights bodies and the UN agencies to uphold the aspirations 
of the people of Pakistan for the restoration of democracy, 
fundamental human rights, the constitutional order through free and 
fair elections and transfer of power to the genuinely elected 
representatives of the people, who alone can ensure Pakistan's 
credible participation in international affairs as a responsible 
and civilized nation," the APC declaration said.

The participants expressed solidarity with the freedom movement in 
Kashmir and the struggle of the Palestinian people for their 
rights. They also supported the demand for the implementation of 
the Wage Board Award for the newspapers employees.

Prosecution drops main witness: Daniel Pearl case
Staff Correspondent

HYDERABAD, May 22: The prosecution side dropped an important 
witness, Arshad Noor Khan, former presiding judge of the Daniel 
Pearl kidnapping-cum-murder case, at the eleventh hour on the 
ground that the Sindh High Court did not grant him permission to 
depose before the court in the case of a US journalist.

Advocate General Sindh Raja Qureshi, however, produced the Resident 
Security Officer (RSO) at the US Consulate, Karachi, Roland Banett 
who claimed that the office of the Federal Bureau of Investigation 
(FBI) of the USA was located in Islamabad.

The case was adjourned till May 27 as the Lahore-based defence 
counsel, Rai Basheer Ahmed would be busy before the Supreme Court 
during the next couple of days.

The Attorney General Sindh was quick to blame the defence side for 
resorting to extreme delaying tactics given the fact that it was 
earlier mutually decided between the prosecution and defence that 
the case proceedings would be held on a daily basis but the defence 
had once again reneged from its commitment.

Former presiding judge of the case, Arshad Noor, did appear before 
the trial court but did not record his evidence in the absence of 
permission from the Sindh High Court which was mandatory under 
article 4 of the Qanoon-e-Shahadat.

Briefing journalists after the court proceedings at the Central 
Prison, the Attorney General said, "Arshad Noor Khan was requested 
by this court to appear and he did appear but the requirements of 
article 4 of Qanoon-e-Shahadat mandated that he has to obtain prior 
permission from the superior court to appear before this court 
which is a sub-ordinate court. The permission was not available 
with Arshad Noor Khan and in view of the fact that two witnesses 
had been examined on the same point and to avoid legal 
complications, the prosecution gives this witness up."

He, however, refused to comment as to how and why the Anti-
Terrorism Court judge turned up before the court when there was no 
permission from the Sindh High Court.

The AG clarified, "The absence of an Anti-Terrorism Court judge 
being a witness in the case will neither benefit nor harm the 
prosecution case."

The appearance of the judge was sought by prosecution through a 
written application on the ground that the principal accused, Ahmed 
Omar Saeed Sheikh, had made a confessional statement.

The Attorney General disclosed that Roland Banett told the court 
that he coordinated between the officials of the FBI and local 
investigating officials, and whatever information he had been 
provided by the FBI had been forwarded to local investigators.

Prosecution drops 13 witnesses in Pearl case
Staff Correspondent

HYDERABAD, May 21: The prosecution, in the Daniel Pearl kidnapping-
cum- murder case, has dropped 13 out of 38 witnesses telling the 
court that sufficient material had been placed on record and nearly 
all the important PWs had already been produced.

The Advocate General Sindh, Raja Qureshi, the chief prosecutor in 
the case, informed the court that 13 witnesses dropped needed not 
to be produced and that only five more PWs would now be produced to 
prove the case.

The five PWs are Arshad Noor Khan (Anti-Terrorism Court-III Judge), 
Marianne Pearl (wife of the slain US journalist Daniel Pearl), 
Ronald Banett (the RSO at US consulate, Karachi), Hameedullah Memon 
and Rao Aslam (inspectors).

Those dropped are Athar Waqar Azeem (General Manager PTV), Manzoor 
Qureshi (programme manager PTV), Agha Tajamul (SSP), Malik Asghar 
Usman (DSP), Noor Muhammad (ASI), Ashiq Ali and Ali Nawaz (head 
constables), Chaudhry Nazar Hussain, Faisal Afridi (taxi driver), 
Mubarak Ali Shah, Sami Qureshi, Abdul Majeed and Haroon Sheikh.

Two more prosecution witnesses, Muhammad Ali (the assistant 
director, Anti-Car Lifting Cell, Karachi) and Zaheer Ahmed, an 
independent Musheer of the arrested accused - Fahad Naseem and 
Salman Saqib - were produced before the court on Tuesday bringing 
the total number of witnesses examined and cross-examined so far to 
20. All the accused were also present in the court.

Meanwhile, Anti-Terrorism Court (ATC), headed by Syed Ali Ashraf 
Shah, would record deposition of ATC-III Judge Arshad Noor Khan, 
former presiding judge in the case. The latter has been requested 
to be called as court witness by prosecution with the permission of 
the Sindh High Court (SHC). Deposition of Mr Ronald Banett, an 
official of the US consulate, would also be recorded. Mr Banett's 
name was disclosed by a special agent of the FBI.

The application about appointment of commission to record the 
statement of Marianne Pearl remained undecided as Barrister Jameel, 
her counsel, apprised the court that he would consult with her 
about whether she was willing or not and would inform the court on 

The court allowed a defence plea of Rai Basheer Ahmed, who had 
sought permission to allow him and his clients to examine a CD on 
their own computer. The CD was brought on record by PW, Sheikh 
Naeem, the sub-server operator Webnet, managed by Mehmood Iqbal 
Hashmi. The CD contained data of e-mails, claimed to have been sent 
by the accused to different organizations and newspapers, about 
Daniel Pearl and their demands.

The counsel did not accede to the request of prosecution that it 
would also like to see the CD along with the defence and accused. 
He maintained that since he had to prepare for cross-examination, 
he had reservations and could not oblige the prosecution.

Pearl case: samples being sent to Lahore
KARACHI, May 19: Authorities launched DNA tests on samples taken 
from a dismembered body which they believe are the remains of 
murdered US reporter Daniel Pearl.

"We are sending samples to Lahore for DNA testing today," a police 
investigator told newsmen, adding that they included teeth, hair, 
bones and samples of blood stains taken from the hut where Pearl 
was believed to have been killed.

"The opinion of the experts who will conduct the DNA tests will be 
final for us," said the investigator, adding that the laboratory in 
Lahore specializes in the high-tech procedure.

Authorities found the decapitated body on Friday buried on a vacant 
plot of land near the blood-stained hut where he was apparently 
murdered after being abducted on January 23.

The investigator said police had questioned a man who used to own 
the desolate plot, in an area notorious as a criminal haunt.

The owner, Maulana Tayyab, said he had sold the property some eight 
years ago but did not recall the name of the buyer. He promised to 
provide police with papers relating to the sale, the investigator 

Phone record was tampered with, claims defence: Pearl case
Staff Correspondent

HYDERABAD, May 18: Defence counsels in Daniel Pearl kidnapping-cum-
murder case contested the validity of print-outs of cellular phone 
connections saying that all these documents were tampered with by 
the prosecution and police in order to establish that the 
connections were used by the accused.

They claimed that in the print-outs, produced by the manager of a 
cellular phone company, Col (rtd) Usman, the telephone connections 
were not shown in the name of the present accused.

The court adjourned the matter for Tuesday (May 21) when it would 
hear the viewpoint of Barrister Jameel on the application of 
appointment of a commission to record the statement of Marine 
Pearl, wife of the slain Wall Street Journal reporter.

Advocate General Sindh, Raja Qureshi, told newsmen that the court 
would not work on Monday as the defence counsels were busy in 
Lahore in connection with their cases. The AG, who is also the 
chief prosecutor, raised objection on this as well.

He produced another witness Mahmood Iqbal Hashmi of the Webnet, a 
Karachi-based internet service provider. Mr Hashmi produced six 
attachments along with his statements saying that he provides 
internet facilities to different sub-servers through internal 
servers in order to facilitate them to send their electronic mails 
worldwide. He claimed that the US consulate at Karachi had 
requested him to find out as to from where such e-mails were 

Mr Hashmi added that he found that the e-mails in question were 
sent through the sub-server - Sheikh Naeem, another prosecution 
witness who has already been examined by the court. Mr Hashmi said 
that he had handed over one copy of the data to the US consulate 
and anther to the investigating police officials while yet another 
copy was being submitted with court for record. His cross-
examination was still reserved by the defence lawyers.

The AG said that as per Sheikh Naeem's statement, he provided e-
mails facility to 60-70 users and the e-mails which were verified 
by Mehmood Iqbal Sheikh were transmitted from line No: 66. He 
deposed that the line was being used from telephone number and 
laptop of accused Fahad Naseem.

Referring to Salman Saqib who, the AG said, complained of medical 
problems every now and then a medical board conducted his 
examination and according to its report he was perfectly alright.

During cross-examination of Col (rtd) Usman, AG pointed out that 
according to the print-outs it was proved that the accused used the 
facility of cellular phone on a different time, date and duration 
and in complicity with others committed an offence for which they 
were being prosecuted. He, however, clarified that the manager of 
the phone company could not establish that they were actual users 
of cellular phone connections because the mobile phones could by 
used by anyone. He said that these phones could be obtained in the 
name of any other person on submission of photo copy of NIC.

The AG said that on May 22 the ATC-3 Judge Arshad Noor Khan, former 
presiding judge of the Daniel Pearl case, would be examined and 
cross-examined alone.

To a query whether Sindh High Court had allowed the judge to appear 
before the court, he said a written application had been addressed 
to the Registrar of the SHC and added that such applications were 
always allowed because it involved fair and transparent 
dispensation of justice in the case.

A junior defence lawyer, Mohsin Imam, told newsmen that Col (rtd) 
Usman agreed that from his office record, he could not establish as 
to who spoke to whom.

The defence counsels sought the certified copy of a CD which was 
earlier produced by Sheikh Naeem. The court directed the reader of 
the court and the SSP of CIA, Manzoor Mughal, to ensure the 
provision of CD to defence lawyers after getting it copied from an 
internet service provider. The counsels maintained that this 
witness had no solid proof of the cellular phone connections having 
been obtained by the accused and that they were using them.

A Lahore-based defence counsel, Rai Basheer Ahmed, informed newsmen 
that print-outs of 17 telephone connections, which were in fact 
details of incoming and out-going calls of these connections, were 
tampered with because these print-outs were computerised and issued 
in English.

He said that he confronted these print-outs with prosecution 
witness in order to prove that the witness did not tamper them. He 
insisted that the prosecution and police had tampered with the 

For instance, he said, the connection of Shamim Ahmed had been 
shown as Shamim Ahmed alias Ahmed Omar Saeed Sheikh whereas the 
connection of Shafi Muhammad Pathan, a resident of Mardan, was 
shown to be one being used by the slain journalist Daniel Pearl. He 
pointed out that names of Daniel Pearl and Ahmed Omar were written 
in Urdu.

The lawyer said that the cellular phone company did not fix the 
responsibility on the users for the misuse of phones and added that 
accused had nothing to do with these connections.

He maintained that the prosecution tried to establish that the 
connections were issued in the name of different people but the 
accused were their real users. He claimed that Col (rtd) Usman 
admitted that he had no record that present accused had obtained 
these 17 connections and that he was also unable to prove that 
accused were their real users. He pleaded that all these persons in 
whose names the connections were issued had not been joined in the 
investigation by police.

Rai Basheer raised objection when PW, Mahmood Iqbal Hashmi, 
produced the copy of data of e-mails to the court. The counsel said 
that police did not include this data in the case-file thus it 
could not be made part of the case now.

The court said it would decide this point at the time of final 
arguments. It allowed brother of Fahad Naseem to meet the detainee. 
Other relatives of the accused would be allowed an interview with 
him during the course of break of court. This order was passed on 
an application filed by Rai Basheer Ahmed. 

He also expressed dissatisfaction over reports of medical board 
that examined Salman Saqib. He claimed that he had authentic 
reports of Agha Khan Hospital and requested the court to get the 
accused re-examined and obtain tests from the laboratories of the 
same hospital.

APHC leader Lone gunned down
SRINAGAR, May 21: Abdul Gani Lone, leader of the All Parties 
Hurriyat Conference, was shot dead in a killing likely to undermine 
efforts to bring peace to occupied Kashmir.

Witnesses said Lone was shot dead by two unidentified men while he 
was attending a function to mark the 12th death anniversary of 
Mirwaiz Maulvi Mohammad Farooq, who was killed by unidentified 
gunmen in his house on May 21, 1990.

On that day more than 50 people were killed when Indian police 
opened fire on mourners carrying the body of Maulvi Farooq. The 
gunmen who shot Lone also lobbed a grenade, but it failed to 
explode, the witnesses said. One of his bodyguards was also killed 
and another was injured in the attack.

"He (Lone) fell down and started reciting Quranic verses. When the 
gunmen realized that he was still alive they fired again and he 
died there," Lone's driver, Abdul Rashid, said.

Wailing mourners, many beating their chests and pulling their hair, 
surrounded Lone's bullet-ridden body at his residence.

SHC restores Bhopal House to owners
Staff Reporter

KARACHI, May 21: The Sindh High Court ordered restoration of 
possession of Bhopal House to Shaharyar M. Khan, legal heir to the 
late Begum Abida Sultaan, after the contemners offered 
unconditional apology for forcibly dispossessing the plaintiff of 
the property.

Justice Zahid Kurban Alavi passed the order when the contempt 
application of the late Begum Abida Sultaan came up for 

In the light of the court's order Shaharyar M. Khan was handed over 
possession of Bhopal House in the afternoon.

When the matter came up before the court, surprisingly Barrister 
Aitzaz Ahsan stood up on behalf of the alleged contemners, Muhammad 
Mushtaq, executive engineer, and Iftekhar Ahmed, assistant 
executive engineer, and pleaded that "due to certain 
misunderstanding a wrong was done."

Mr Ahsan submitted that in order to rectify the wrong the 
contemners, who were present in the court, were prepared to 
immediately restore and hand over the possession back to the 
plaintiff's son, Shaharyar M. Khan. He also submitted that this was 
being done without conceding on the plaintiff's claim to the title 
of the property. It was also submitted that the evidence should be 
recorded and completed at the earliest so that the long- 
outstanding matter could be resolved and disposed of.

On May 14, a day before the Qul of the late Begum Abida Sultaan of 
Bhopal, the occupants of Bhopal House in Clifton were evicted by 
force at the behest of the Intelligence Bureau.

On May 15, Muhammad Mushtaq, Executive Engineer, PWD, the defendant 
No 3, had submitted before Justice Alavi that he had received 
instructions from the federal ministries of law and housing and 

The contemner had further submitted that he was fully aware that 
there might be a possible contempt to which he was given assurance 
by the competent authority to defend him. 

It was the case of the plaintiff that the house was the property of 
Nawab Hamidullah Khan, Nawab of Bhopal, where the IB had set up its 
office in the annexe. The plaintiff had shown various documents to 
disprove the claims of the federal government's agency.

The ministry of housing and works had claimed that the said 
property was "purchased by the Government of Pakistan from the 
Nawab of Bhopal for a consideration of Rs450,000 in 1958." But a 
message faxed by the Press Information Department had stated that 
the "building had been in possession of the Government of Pakistan 
as an evacuee property since 1947, without any objection from the 
claimant or anyone on his behalf uptil 1992."

Abdul Hafeez Pirzada, counsel for the plaintiff, briefly narrated 
the facts leading to the unfortunate incident. According to him, in 
spite of orders passed by this court an action had been taken which 
was contrary to the statement and undertaking given by the 
defendants that no action should be taken against the plaintiff, 
but only through due process of law. Deploring the action of the 
contemners, Mr Pirzada advocated for prosecuting them.

When Mr Ahsan offered unconditional apology to the court on behalf 
of the contemners, Justice Alavi asked for Mr Shaharyar Khan's 

As Mr Khan magnanimously expressed his satisfaction with the 
unconditional apology given by the contemners, Justice Alavi 
accepted the unconditional apology. He also ordered restoration of 
possession of Bhopal House to the plaintiff's son, in the course of 
the day, and also told the plaintiff to move amended title of the 
plaint so as to bring the legal heirs on record.

Thereafter, the matter which was already pending before Abdul Aziz 
Memon, advocate/ commissioner, for recording of evidence, should be 
sent back to him and evidence be recorded and completed within one 
month, Justice Alavi ordered.

Mr Khan later said: "I am deeply gratified at the decision of the 
court." He said a close relation of his, with his family, was 
staying in Bhopal House before it was sealed.

National govt demanded
Staff Reporter

KARACHI, May 19: The Pakistan People's Party's acting secretary-
general, Mian Raza Rabbani, has said the external threat facing the 
country needed the setting up of a national government immediately 
so that the country could meet the internal and external challenges 

He was speaking at press conference on Sunday here in Bilawal 
House, where a former MNA from Nawabshah, Syed Bashir Ahmed Shah, 
expressed his confidence in the leadership of Benazir Bhutto and 
announced his decision to join the PPP.

In reply to a question, Mr Rabbani said whenever there had been 
dictatorship in the country, tension had risen on the borders, and 
now also India got the advantage of an unelected government in 

Answering another question, the PPP leader said if there was a move 
by the government to hold an all-parties conference to take 
political parties into confidence on the situation, his party would 
take a decision after consultation with the ARD.

He claimed that in the present trying circumstances only a towering 
international personality and calibre of Benazir Bhutto could steer 
the country out of the crisis.

"Declaring Benazir Bhutto absconder during heightening tension on 
the borders is an insult to the dignity of the country which would 
result in causing further despondency among the nation," he 

PPP alleges Benazir denied right to defence
Staff Reporter

ISLAMABAD, May 24: The Pakistan People's Party (PPP) has urged the 
Commonwealth to take note and examine the conduct of the trial on 
May 17 in which what it called the due process and right to defence 
were denied to Benazir Bhutto.

"It is feared that Judge Mansoor Ali Khan is acting under 
pressure," PPP acting secretary-general Raza Rabbani said in a 
letter addressed to the secretary-general of the Commonwealth, 
Donald McKinnon, expressing concern over denial of due process and 
a fair trial to Ms Bhutto by the military regime in the SGS case. 
The letter also drew attention of the Commonwealth to how Ms Bhutto 
was declared as proclaimed offender by the court despite being 
represented by her counsel.

Regrettably, since the overthrow of the PPP government in 1996, 
military hard-liners formed a front organization for political 
purposes under the disguise of anti-corruption, the letter said.

Mr Rabbani said a former prosecutor had written of NAB pressuring 
the courts by telling them to behave. Special salaries and perks 
were offered as a financial incentives to judges serving in the 
trial courts, he alleged.

"It is widely known that the proceedings are watched by 
intelligence officials to ensure that all goes according to script. 
Ms Bhutto fears that the judge is acting under pressure in the 
presence of such individuals in a country where half of the Supreme 
Court was sacked by the military dictator."

The PPP leader said that the Supreme Court had already set aside 
the conviction of Ms Bhutto in the SGS case after tape-recorded 
conversations revealed that the course of justice was perverted by 
the then regime in collusion with the trial judge.

Judgment on SGS appeal reserved
Staff Reporter

ISLAMABAD, May 21: The Supreme Court reserved its judgment on the 
appeal of a Swiss company, Societe Generale de Surveillance (SGS), 
seeking wrap up of arbitration proceedings in Pakistan.

A SC bench, comprising Justice Munir A. Sheikh, Justice Qazi 
Mohammad Farooq and Justice Abdul Hameed Dogar, reserved its 
judgement after conducting proceedings for about five days.

The SGS approached the apex court against the order of a civil 
court of the appointment of an arbitrator to settle the dispute 
that arose after the termination of the contract. Justice (retd) 
Khalilur Rehman Khan has been appointed arbitrator by the civil 

After preliminary hearing, the apex court granted leave to appeal 
to consider three questions: i) whether the arbitration agreement 
between Pakistan and the SGS continued to remain valid after the 
Pak-Swiss treaty? ii) whether the SGS was an "investor" within the 
meaning of the Pak-Swiss treaty? iii) whether the SGS had waived 
its right to the International Centre for Settlement of Investment 
Disputes' (ICSID) arbitration in view of its conduct in pursing its 
claims before the Swiss courts and filing a counter claim before 
the civil judge, Islamabad.

The Swiss company stated that it had approached the ICSID for 
getting compensation from the Pakistan government for the 
termination of the pre-shipment inspection contract, and demanded 
that the arbitration proceedings, initiated in Pakistan, be 

The firm maintained that Pakistan and Switzerland had signed a 
bilateral investment treaty in May 1996, and any dispute arising 
out of any agreement would be decided by the ICSID, a forum 
provided in the investment treaty.

After the SC had set aside the judgement convicting Benazir Bhutto 
and Asif Ali Zardari on the charges of getting commission from the 
SGS, the company filed a counter claim against the government in a 
Pakistani court.

Benazir declared PO in SGS case
Staff Reporter

ISLAMABAD, May 18: PPP chairperson Benazir Bhutto was declared 
proclaimed offender for her failure to appear in the accountability 
court in connection with the SGS case.

This is the second time when an accountability court has declared 
the former prime minister proclaimed offender for the same offence. 
Earlier, Benazir Bhutto was also sentenced to three years rigorous 
imprisonment on the same charge by another accountability court.

The SGS case was remanded to the accountability court by a seven-
member bench of the Supreme Court for a retrial. Ms Bhutto and 
spouse Asif Ali Zardari are facing the charge of awarding a 
preshipment inspection contract to the SGS, a Swiss company, in 
consideration of 6 per cent commission of the total amount received 
by the company from the government of Pakistan.

The commission, according to the prosecution, was paid to an 
offshore company, Bomer Finance Inc., allegedly owned by Asif 
Zardari while Jens Schlegelmilch acted as his fiduciary agent. The 
ultimate beneficiaries of the commission were Asif Zardari and 
Benazir Bhutto, the prosecution alleged.

On Friday, while separating the case of Asif Zardari and former 
Central Board of Revenue chairman A.R. Siddiqui from the main 
reference in the SGS case, the court declared the nine co-accused 
in the reference as POs and adjourned the hearing to May 30. In 
addition to Jens Schlegelmilch, the other eight directors of the 
Swiss firm are: Colin Robey, then vice-president; Oliver De 
Breakeleer, then managing director; Michael Lysewycs, executive 
manager; Michael Worrow, operation manager; David Murray, operation 
manager; William Boyd, technical manager; R. Rijken, manager; and 
Andrea Ralph, manager.

The court, which had earlier issued arrest warrants against the 
former CBR chairman because of his constant absence, on Friday 
directed the co-accused to submit an undertaking with a bank 
guarantee of Rs1 million to ensure his appearance before the court.

Lawyers Tariq Aziz and Raheel Malik represented the National 
Accountability Bureau before Judge Mansoor Ali Khan and informed 
the court that proceedings under section 87 of the Criminal 
Procedure Code had already been completed which empowered the court 
to issue the proclamation order.

Earlier the process server, Sub-Inspector Mohammad Riyasat Ali of 
Boat Basin Police Station, informed the court that he had affixed 
the court's proclamation orders at the Bilawal House, the Karachi 
residence of Benazir Bhutto and at other important public places.

PPP to oppose constitutional amendments, says Asif
Bureau Report

PESHAWAR, May 18: Castigating the government plans to bar election 
of a person as a prime minister for third stint, central leader of 
Pakistan People's Party, Asif Ali Zardari said that the proposed 
constitutional amendments were against the norms of democracy and 
the party would fully agitate against it.

"It is the will of the people which shall prevail and the army 
generals have no authority to play with the destiny of the people," 
he told newsmen in the premises of Attock Fort, where he was 
brought in connection with hearing in asset case.

Asif Zardari claimed that his spouse Benazir Bhutto would 
definitely return to Pakistan before October elections. He 
criticized Gen Musharraf for issuing statements that Ms Bhutto 
would not be allowed to contest polls, stating that the general had 
no authority to issue directives as only the courts and election 
commission authorities were empowered to stop any person from 
contesting polls.

"Even Ziaul Haq had issued same statement that he would not allow 
the PPP to form government, but time proved that the masses were 
with PPP," Mr Zardari said. He added that the recent statement of 
Commonwealth was encouraging as it had expressed concern over 
deviation of Gen Musharraf from the prescribed roadmap.

Answering a question regarding tension between India and Pakistan, 
he said that there was a general perception that the present regime 
wanted to divert attention of the masses from the referendum fiasco 
and other pressing domestic issues due to which it had been staging 

He added that Gen Musharraf had given first post-referendum gift to 
the nation in the shape of enhancement in prices of petroleum 

About entering into alliance with other political parties for the 
coming elections, he said that alliances were part of political 
process and the PPP would definitely like to enter into alliance 
with like-minded parties.

Asif Zardari was apprehensive about fair and impartial polls in the 
country, stating that under the present regime they had not been 
expecting fair polls.

When asked did he expect that he might be convicted in any of the 
cases pending against him to bar him from contesting polls, the PPP 
leader expressed the hope that the presiding officers of concerned 
courts would have learnt lesson from the chapter of Justice Qayyum 
and they would not convict him on the directives of the government.

Gool Minwalla passes away
By Bhagwandas

KARACHI, May 21: One of the pioneers in social work, a women's 
rights activist and educationist, Gool Khurshed Minwalla died at 
her Bath Island home. She was 89. She leaves three sons, a daughter 
and several grandchildren.

Gool Minwalla was one of the few leading women social workers who 
joined hands with Begum Raana Liaquat Ali Khan when she established 
the All-Pakistan Women's Association (APWA) for the welfare of the 
women soon after partition.

Born on May 1, 1913, Gool was one of her parents' six children - 
three girls and three boys. She studied at Mama Parsi Girls School 
and after doing her matriculation, she joined the school as a 

She took a teachers' training course at Adyar, Madras (now 
Chennai), conducted by Maria Montessori, in 1939, and gained an 
international diploma for education of children aged between 2- 1/2 
and 6 years. On her return, she established the first montessori 
school in Karachi, which is still operational. It was accredited by 
the Association of Montessori International (AMI) in Amsterdam.

Gool also established the Pakistan Montessori Association, which 
started conducting International Diploma in Montessori Method. Dr 
Maria Montessori also came to Pakistan to see the working of the 
montessori schools. So far, over 3,500 montessori teachers have 
obtained training from her organization.

She was also appointed external examiner by the AMI to assess 
students all over the USA, Europe, India, Sri Lanka and Japan.

The government recognized her services in the field of social 
welfare work and she was awarded Tamgha-i-Quaid-i-Azam in 1958. At 
different times she had served various social welfare organizations 
such as the Poor Patients' Welfare Society; Poor Families Welfare 
Society; Karachi Children's Welfare Society; the Ida Rieu Poor 
Welfare Association; etc.

She also helped establish many organizations like Social Services 
Coordinating Council; the Pakistan Council of Social Work; Karachi 
Social Services Group; the Karachi Tuberculosis Association; and 
the National Federation of Welfare of the Blind; the Pakistan 
United Nations Association; etc.

She had also served as the chairperson of the National Council of 
Social Welfare and served on the KDA, Radio Pakistan and the Remand 

Ms Minwalla had represented the country at various forums, 
including the United Nations International Congress at Geneva on 
the Prevention of Crime and the Treatment of Offenders. She was 
also the initiator of the American Field Service Program in 
Pakistan that is providing assistance to the youth.

One killed following attack on procession: 40 vehicles torched
Staff Reporter

KARACHI, May 21: One person was killed and over a dozen others 
injured when some miscreants pelted a religious procession passing 
through Nishtar Road with stones. Afterwards young processionists 
set fire to at least 40 vehicles.

One of the injured said that one of the participants of the 
procession snatched the gun of a policeman and started firing at 
the miscreants who had been hurling stones. As a result, Imran, 21, 
and Nauzad Khan, 30, got injured. Nauzad was pronounced dead at the 
Civil Hospital.

Two petrol pumps on Nishtar Road, between Lasbella and Teen Hatti, 
were destroyed by the mob. A truck and tankers parked in a private 
compound on the road were also set ablaze by youths.

Meanwhile, enraged youths set on fire the parked vehicles on the 
blocked track of Nishtar Road. Over a dozen rickshaws, minibuses, 
buses of 7-C route, taxis, and motorcycles were set on fire. An oil 
tanker was torched which fuelled the fire to other vehicles. 

Pakistan loses $100 million in Investment Protection Treaties
By Rafaqat Ali 

ISLAMABAD, May 19: Pakistan has been robbed of US$100 million, and 
three claims totalling approximately US$970 million are pending 
with the International Centre for Settlement of Investment Disputes 

The situation is so grim that Pakistan's foreign assets, including 
its reserves with the Reserve Bank of America, PIA's fleet, ships 
of PNSC, and its embassies, are at risk of being forfeited on the 
orders of the ICSID.

At present Pakistan has investment protection treaties with 43 
countries of the world, the majority of which were signed in the 
nineties, without properly defining the term "investment". Even, a 
company which was hired to provide pre-shipment inspection 
"services", has filed a claim for US$120 millions with the ICSID.

Unlike other countries, Pakistan has never protected its foreign 
assets. If a suit was decreed by the ICSID, the other party could 
ask for the execution of the treaty by identifying Pakistan's 

In the case of a French firm, which was contracted to build the 
Jinnah terminal at Karachi Airport, the Civil Aviation Authority 
had first joined the ICSID proceeding in Singapore, but backed out 
later, saying that it was too expensive. The ICSID issued an ex-
parte decree directing Pakistan to pay US$100 to the company. The 
suit, however, was set aside by the Sindh High Court. But when the 
French government threatened that Pakistan's foreign assets could 
be confiscated to realize the claim, Pakistan, in total disregard 
to the SHC order, signed a loan agreement for US$100 million with 
the French government to pay the entire amount to the company.

At present three claims worth US$970 million are pending before the 
ICSID. The Italian company, Impreglio, working at Ghazi Brotha 
project had approached the ICSID after developing disputes with 
Pakistan. Efforts are afoot to reach a settlement.

The Swiss Company, SGS, which had been contracted to provide pre-
shipment inspection services, has also approached the ICSID, with a 
claim of US$120 million. Similarly, Turkish company Bayinder, which 
was contracted to build the Peshawar-Islamabad Motorway, has filed 
a claim for US$400 million.

The official sources say that irrespective of what would be the 
outcome of the claims with the ICSID, participation in the 
proceeding was so expensive that countries like Pakistan usually 
avoid appearing.

When a complaint is registered with the ICSID, both the parties are 
required to deposit US$100,000 as fee apart from engaging foreign 
lawyers who specialize in the ICSID proceeding, mostly held in 
foreign countries.

Those dealing with the issue feel that Pakistan can protect its 
interest by properly defining the term "investment" and that any 
decree would be executed through Pakistani courts. They further 
suggest that a definition of the word "investment" provided in the 
Foreign Investment Act 1977 should be made applicable. According to 
that only that money which was brought in for establishing any 
factory, or for use in the exploration activity in Pakistan, would 
be called "investment".

The official sources confirmed that when it comes to the 
rectification of an investment treaty with any country the cabinet 
hardly takes two to three minutes to do that.

The present government too has singed five investment protection 
treaties; of which three disputable claims are with the ICSID 
awaiting settlement.

The counties with which Pakistan has investment treaties are 
Germany, Romania, Sweden, Kuwait, France, South Korea, the 
Netherlands, China, Uzbekistan, Tajikistan, Spain, Turkmenistan, 
the United Kingdom, Singapore, Turkey, Portugal, Malaysia, 
Switzerland, Kyrgyz Republic, Azerbaijan, Bangladesh, UAE, Iran, 
Indonesia, Tunisia, Syria, Denmark, Belarus, Mauritius, Italy, 
Oman, Sri Lanka, Australia, Japan, Belgium, Qatar, the Philippine, 
Yemen Arab Republic, Egypt, Opec Fund, Lebanon, Morocco, and Bosnia 
& Herzegovina.

Growth rate decline propels poverty: Shaukat
Staff Reporter

ISLAMABAD, May 20: Minister for Finance Shaukat Aziz said that 
Pakistan has been experiencing declining growth rate for the last 
several years due to which poverty has been increasing in the 
country. This was stated by Minister for Finance Shaukat Aziz.

He said Pakistan had been experiencing an increase in the incidence 
of poverty, which was a consequence of declining economic growth 
rate over the past several years. The Government of Pakistan has, 
therefore, taken a conscious decision to prioritize poverty 
alleviation in the overall framework of economic policy-making, an 
approach evident through the government's comprehensive Poverty 
Reduction Strategy Paper.

Aziz pointed out that as a part of new strategy, a higher resource 
allocation had been ensured for poverty alleviation programs such 
as the integrated small works program, which was aimed at 
generating direct employment, ensuring enhanced access to basic 
education, health and nutrition, strengthening the Zakat system and 
the provision of safety nets such as the food support program.

The strategy also focused on ensuring access to sustainable micro 
finance services to the poor to enhance their income-generating 
capacity since there existed a direct nexus between poverty and 
micro finance, he said.

In Pakistan, among the nearly 6.5 million poor households, less 
than five per cent had access to affordable micro finance services 
from institutional sources. The poor thus have to turn to informal 
credit suppliers where the terms and conditions were such that they 
perpetuated rather than ameliorated poverty, he observed.

The government, therefore, has decided to pro-actively address the 
underlying issues that had restricted the flow of micro finance 
services to the poor and designed a comprehensive micro finance 
development strategy for Pakistan.

MoU signed for promotion of IT industry
Staff Reporter

ISLAMABAD, May 22: The United Nations Industrial Development 
Organization (UNIDO) and the Pakistan Software Houses Association 
(Pasha) signed a memorandum of understanding to help the industry 
build a better IT-enabled Pakistan.

Pasha President Hamza Matin and the UNIDO Representative in 
Pakistan, Dr Carlos Chanduvi-Suarez signed the document at a 
ceremony held at the UN Information Centre on Wednesday.

Speaking on the occasion, Hamza Matin said, the agreement would 
open doors for the foreign investors to come and do business in 

Dr Suarez hoped for greater cooperation with the umbrella 
organization of the software houses. Pasha is an umbrella 
organization of over 200 software houses in the country.

As per the memorandum, Pasha would play a lead role with the 
assistance of UNIDO in the growth of the software-driven IT 
industry in Pakistan. It also aims at maintaining close interaction 
with federal, provincial and local governments on IT sector 
development and facilitation.

Both UNIDO and Pasha would play a vital role in development of 
vision, strategy and policy framework for the IT sector besides 
liaising with the government bodies for participation in 
international exhibitions and conferences for business development.

They would also work together in developing a liaison with all the 
IT sector interest groups specially telecommunications, 
infrastructure and education to align them with the industry 

The two bodies agreed to promote standardization and adherence to 
established quality standards in IT companies besides creating 
awareness about benefits and facilitation in protection of 
intellectual property rights in Pakistan to encourage alliances and 

It would exploit and promote relationships and linkages with 
overseas Pakistanis, international bodies and investors to become a 
catalyst for use of information technology for government, business 
and the social sector in the country.

Both the organizations would train software houses for 
participation in the industrial development of Pakistan.

To realize the objectives, Hamza Matin said, "Pasha would have to 
expand beyond the boundaries within which it currently operates and 
a significant amount of capacity building would be required."

Over Rs10,000 RTCs banned
Staff Reporter

KARACHI, May 23: The State Bank stopped banks from issuing rupee 
traveller cheques (RTCs) of more than Rs10,000 denomination. The 
SBP said in a statement it has directed all the banks to 
immediately recall all un-issued or unsold RTCs of more than 
Rs10,000 denomination and intimate the position to SBP's Banking 
Policy Department.

The central bank said the guideline issued on Thursday aims at 
preventing the use of RTCs for settlement of undocumented 
transactions "which may also facilitate money-laundering."

The SBP has asked the banks to issue public notices directing RTC 
holders to either encash or return the unused RTCs of more than 
Rs10,000 denomination for change into lower denomination or refund. 
This exercise should be completed within six months. It has also 
asked them to ensure that at the time of issuance of RTCs for 
cumulative amount higher than Rs10,000 proper identification of the 
purchase should be obtained and placed on record. National tax 
number and national identity card number may establish somebody's 
proper identification.

The State Bank has also asked the banks to immediately report to 
its Banking Policy Department the name of the persons to whom rupee 
travellers cheques totalling Rs500,000 and above have been issued 
in sequential order.

The SBP has advised the banks that they should accept for payment 
only those rupee traveller cheques, which bear the signature of the 
purchaser and are countersigned by the holder.

The central bank has also asked the banks to report to it their 
outstanding RTCs in the footnote to their weekly statements.

"The State Bank encourages the use of rupee traveller cheques for 
the traveling public (only) and has, therefore, directed the banks 
that while advertising the rupee traveller cheques...they should 
emphasize its utility only for travel or travel related purposes."

HBL sell-off to complete by October
Staff Reporter

KARACHI, May 23: State Bank Governor Dr. Ishrat Hussain said that 
after the privatisation of United Bank Limited next month, the 
sell-off of the Habib Bank Limited would complete by October.

He said the process of privatisation of all the government-owned 
banks would be over by the year-end and till such time there was no 
possibility of reduction in interest rates.

The SBP Governor said that high cost of running government owned 
banks did not leave any room for reducing interest rates. He said 
the non-performing loans to the tune of Rs300 billion of the 
government owned banks would be transferred to the Corporate and 
Industrial Restructuring Corporation (CIRC) so that these banks 
could start their new life with a clean slate.

"When these banks will be in the private sector and there will be 
competition only then one could expect the reduction in interest 
rates," Dr. Ishrat responded to a demand raised by PHMA chairman 
Shahzad Azam in his address of welcome.

The SBP chief said the banking sector could not improve its working 
and efficiency without under going a major surgery and the time had 
come to act in this direction if "we want to see interest rates 
lower to meet the business community's outstanding demand".

He expressed the hope that in the new budget there would be further 
cut in corporate taxes, which had been reduced from 58 per cent to 
50 per cent in the past.

The export refinance rates, he said, had been linked with the T-
bills and the SBP had directed the banks not to charge more than 
1.5 per cent from exporters, which was equal to what the government 
is paying.

There was a time when the economy was under the grip of 
dollarization but the same had been reverted to the rupee. However, 
he said account holders had been allowed only to keep 20 per cent 
of their deposit amount in dollar accounts. Nevertheless, he said 
exporters had been exempted from this condition.

Like long-term rupee finance being provided under Pakistan 
Investment Bonds, he said, there was a need for having long-term 
dollar finance as well. Very soon, Dr. Ishrat said, there would be 
such facility as the SBP was under negotiation with the Exim Bank 
of Japan and other banks for providing such service, which was 
stopped under sanctions.

Initially, he said such facility would be available for import of 
machinery as some European banks had also been approached for 
providing long-term dollar financing to "our industry".

What Pakistan should seek: trade or aid?
By Anwar Ali Shah

It is generally believed that the foreign economic assistance which 
Pakistan received from time to time is a heavy constraint on the 
process of development because every year the country has to set 
aside a huge amount of money for the repayment of the foreign 

Debt-servicing has become the largest item of expenditure in the 
national budget and most of the loans that Pakistan is receiving 
help only to repay the old ones. There is, therefore, a persistent 
demand in Pakistan to get rid of aid because it not only shackles 
the economy, it also puts a heavy premium on the freedom of action 
in the foreign affairs of the country.

It, however, cannot be denied that foreign aid has played a crucial 
role in the economic development of Pakistan, particularly in the 
expansion of industrial sector. Being a poor country, Pakistan 
could not accumulate surplus capital through mobilization of 
domestic resources. There were, therefore, heavy shortages of 
capital for investment purposes and to finance the import of 
essential industrial raw material, capital goods and machinery. The 
need of the industrial sector have been met by getting foreign 

Foreign aid includes loans, credits and grants. The ratio of these 
foreign resources to one another depends upon the nature of 
political relationship between the donor and recipient country. 
Loans as compared to grants, carry high interest rates which lead 
to the accumulation of debts. During the last 30 years, Pakistan 
has accumulated an enormously large foreign debt without having 
developed the socio-economic infrastructure necessary to sustain a 
growth process which can help the country to reduce its dependence 
on foreign aid.

In another area, i.e. foreign trade, Pakistan is unable to finance 
its import bill through the mobilization of domestic resources or 
through earning foreign exchange on exports. It is because our 
imports far exceed our exports. Under these circumstances, Pakistan 
has no other option but to need foreign aid in the form of medium 
or long term loans because such an inflow of external financial 
resources help narrowing down both a saving-investment gap and an 
import-export imbalance.

Unfortunately, Pakistan cannot establish heavy industries due to 
financial constraints. Small industries cannot prosper in the 
absence of heavy industries, because heavy industry is the primary 
consumer of products of small industries. Medium size industries in 
Pakistan are faced with tough competition in the world market. All 
the developing countries of the world are processing only medium 
size industries due to lack of financial resources and it causes 
tough competition.

Besides, Pakistan's exports are highly concentrated in few 
items/groups namely cotton, fish, leather, rice, synthetic 
textiles, wool, carpets and sports goods. Cotton group alone 
contributed an average 60.3 per cent to total exports. A poor 
cotton crop can seriously affect total export proceeds as it has 
been observed several times during the decade.

The government has taken a number of steps to expand exports. With 
a view to encouraging the exports, the government has provided a 
number of export incentives to the industrial sector; but in spite 
of these incentives, the exports are not picking up due to a number 
of factors. These include low productivity of the work force, lack 
of physical infrastructure and an environment marked by political 

The promotion of foreign investment for exports in technology based 
industries where Pakistan lagged needs to be aggressively pursued. 
A much-targeted approach. both in terms of industries and countries 
of origin may be helpful. Specifically, Pakistan needs to look to 
East Asian countries like Korea which have had enormous success in 
developing new exports but are now facing rising wages and are 
interested in establishing production bases abroad.

It is not possible for public sector to these objectives and goals 
without active participation of private sector. Fortunately, there 
is a clear consensus within the government that the private sector 
is pivotal for development because the state sector is seriously 
over extended financially, has become increasingly inefficient, and 
cannot provide effective leadership for modernizing the economy. 
While increased public investment in physical infrastructure and 
human capital will be needed, it is private sector investment (both 
domestic and foreign) which will be the engine of growth.

In short term to medium term, the private and public sector need to 
work jointly on defining and agreeing on policy goals and 
strategies in areas such as export development, modernization of 
agriculture and industry, skills development, legal and regulatory 
framework, an effective and elastic tax system and development of 
financial sector and capital markets.

The common ingredient of the higher growth is the innovations and 
new technology. It is obvious that dynamic researches are required 
for innovations. If we want to achieve the higher growth targets, 
we will have to create the links between the research organizations 
and industries. The technological innovations and new ideas in the 
field of economics have always played the significant role in the 
world economies. It happened in Germany, it is the secret of US 
economic growth, and it is the policy of Japanese economy. The 
industrial growth with the utilization of domestic labour and raw 
material is the common path of development. Similarly, the 
innovation is a path of industrial development. What is selling in 
the world trade market is 'technology'. The share of technological 
innovations in the global trade is 72 per cent whereas in the case 
of Pakistan, high technology exports as a percentage of manufacture 
exports is only 3 per cent. It would be worthwhile to mention here 
high technology exports as a percentage of manufactures exports in 
respect of a few countries:

Japan: 39 pc, Israel: 30 pc, USA: 44 pc, Germany: 25 pc, UK: 40 pc, 
India: 10 pc, Pakistan: 3 pc.

Under these circumstances, it is extremely difficult for Pakistan 
to get its due share in the global trade market without 
technological advancement.

We all know that South Korea followed Pakistan's development plan, 
succeeded in building industrial infrastructure and appeared on the 
world economic map as Asian Tiger. It is perhaps high time we 
follow economic role model of South Korea which is as under:

(a) establishment of large trading companies; (b) import 
substitutions; (c) fiscal and credit policy; (d) liaison between 
public and private sectors; (e) industrial concentration; (f) large 
national projects; (g) reliance on multinational corporations for 
technological imports.

I am positive that Pakistan has capacity and capability to enter 
the world trade market in a big way. We have already wasted much 
time and cannot do any more. The government should go all out to 
create the links between the research organizations and industries 
to achieve the higher growth targets. Besides, the government 
should make every possible effort to attract the multinational 
companies to invest in agriculture, oil and gas, small and medium 
enterprises, and IT sectors with a view to increasing production.

KSE index up 135 points on massive buying
Staff Reporter

KARACHI, May 24: The KSE 100-share index soared by about nine per 
cent on massive buying. It ended the day at around 1,663.22 points 
as compared to the previous close of 1,527.58, up 135.64 points or 
nine per cent, reflecting the strength of leading base shares, 
notably PSO, PTCL and Hub-Power. The market capitalization soared 
by Rs30.564bn to Rs388.168bn.

Top gainers were led by Nestle MilkPak, PSO, Shell Pakistan, Wyeth 
Pakistan and Lever Brothers, which recovered Rs9.10 to 54. Other 
good gainers included Central Insurance, Pakistan Oilfields, 
Siemens Pakistan, Packages, BOC Pakistan, Security Papers, Fauji 
Fertiliser, Engro Chemical, Millat Tractors and several others, 
rising by Rs3.00 to Rs8.15.

Losers were led by some second-liners, notably Aventis Pharma, 
Javed Omer, falling by one rupee to Rs1.10.

Trading volume was modest as investors were not inclined to sell in 
anticipation of a further rise in prices, falling to 102m shares 
from the previous 141m shares. Gainers forced a strong lead over 
the losers at 235 to 22, with 26 shares remaining unchanged.

The KESC topped the list of most actives, up Rs1.50 at Rs5.50 on 
25m shares, PTCL, higher also by the same amount at Rs15.35 on 16m 
shares, Hub-Power, higher by Rs1.50 at Rs21.25 on 11m shares, FFC-
Jordan Fertiliser, up by Rs1.50 at Rs6.50 on 9m shares and PSO, up 
Rs9.25 at Rs133.10 on 6m shares.

Other actives were led by Pak PTA, higher by Rs150 on 5m shares, 
Japan Power, up 90 paisa also on 5m shares, Sui Northern, higher by 
Rs1.50 on 4m shares and Dewan Salman, up Rs1.50 on 2m shares.

FUTURE CONTRACTS: Forward counter also showed bullish trend on 
strong support and leading shares, notably ICI Pakistan, FFC-Jordan 
Fertiliser, Engro Chemical and PSO posted gains ranging from Rs2.50 
to Rs9.30 at Rs35.90, Rs6.00, Rs54.65 and Rs113.40 respectively on 
modest volumes. But the largest turnover was recorded in Hub-Power, 
up Rs1.50 at Rs21.40 on 3.947m shares followed by PTCL, also higher 
by the same amount at Rs15.45 on 2.396m shares.

DEFAULTER COMPANIES: Shares of a dozen companies came in for 
trading on this counter but most active among them was Mehran Jute, 
up 65 paisa at Rs0.65 on 0.161m shares, followed by Ravirayon, 
unchanged at Rs5.00 on 79,000 shares and Suzuki Motorcycle, up 
Rs1.35 at Rs5.30 on 61,000 shares.

Trading suspended on KSE
Staff Reporter

KARACHI, May 23: Trading on the Karachi Stock Exchange could not be 
resumed as the authorities were not inclined to test the 
vulnerability of a market signalling distress signals and a 
possible crash in the backdrop of last three sessions' massive 
price erosions caused by fears of war with India.

It is a timely decision to give a temporary relief to the investing 
public, although the market has a room for a further technical 
correction after having risen by 45 per cent during the last two 
months from 1,200 to 1,900 point index level, brokers said.

"Investors are now after the US dollar and the gold after having 
sold their stake in shares", says a broker adding "massive amounts 
have already outflowed in both since the panic selling in shares 
started". The dollar was quoted at Rs61.10 and Rs61.20 for buying 
and selling by the Forex Association of Pakistan, while the gold 
soared to 10-year peak level of Rs6,267 per 10 grams.

The closure apparently followed after a massive rescue operation 
launched by the institutional traders and the financial 
institutions at the lower levels failed to produce the desired 
results as disturbing news from the borders followed in quick 
succession, sending signals that the war has begun and the 
consequent fresh panic liquidation.

An idea of nervous and panic selling may well be had from the fact 
that corrective steps taken by the KSE to forestall further decline 
lost their relevance as most of the leading shares, notably PSO, 
Shell Pakistan and Nestle MilkPak finished around their circuit 

"The market has lost over 16 per cent, eroding about Rs54 billion 
from the market capitalization during the last three sessions after 
the war hysteria gripped it, greater part of which is contributed 
by the rumour-mongers and where the end will come is not clear", 
stock analysts said.

"Investors are opting for gold and dollar after unloading long 
positions in stocks as both are considered safe havens in the war-
like situations", they said adding the "outflow is massive running 
into billion of rupees".

All roads may still not lead to a possible Indo-Pak war, there is 
no immediate possibility of easing of the prevailing tension on the 
borders, they said adding the "series of successive negative 
developments including the killing of a moderate Kashmiri leader 
continue to add fuel to the fire".

"I don't think the market sentiment could be boosted at least for 
the near-term after injecting massive amounts to reverse trend", 
says a leading broker "investors have already gone to an undeclared 
war and may take quite sometime to be back in the market".

Stocks slump by 71 points as war fear mounts
Staff Reporter

KARACHI, May 22: The KSE 100-share index again received massive 
battering and plunged by another 4.4 per cent or 71 points at 
1,527.58 on heavy selling at the fag-end of the session triggered 
by rumours of shooting down of an aircraft and Indian Prime 
Minister's statement about a possible war.

The market leaders again led the decline on heavy selling and fell 
like ninepins under the lead of PSO, Shell Pakistan, Nestle 
MilkPak, Wyeth Pakistan and Lever Brothers, falling by Rs6.50 to 
Rs36. Other prominent losers were led by Shafiq Textiles, Pakistan 
Oilfields, Siemens Pakistan, Glaxo-Wellcome, BOC Pakistan, Dawood 
Hercules, which suffered fall ranging from Rs3 to Rs5.75.

Some of the shares managed to look up under the lead of Millat 
Tractors, Gatron Industries, Ismail Industries, Lakson Tobacco and 
IGI Insurance, which rose fractionally, up by 50 paisa to Rs2.85.

Trading volume fell to 141m shares from the previous 171m shares as 
losers maintained a strong lead over the gainers at 215 to 32, with 
29 shares holding on to the last levels.

Hub-Power again topped the list of most actives, off one rupee at 
Rs19.75m on 53m shares followed by PTCL also down by the same 
amount at Rs13.85 on 34m shares, Dewan Salman, lower 60 paisa at 
Rs11.50 on 11m shares, FFC-Jordan Fertiliser, down by 45 paisa at 
Rs5 on 7m shares and Pakistan State Oil (PSO), off Rs6.50 at 

Sui Northern led the list of other actives, off 70 paisa on 6m 
shares, KESC, easy five paisa on 4m shares, Fauji fertiliser, lower 
65 paisa on 2m shares, Engro Chemical, off Rs2.60 on 1.771m shares 
and Telecard, easy 90 paisa on 1.497m shares.

FUTURE CONTRACTS: PSO also received massive battering on the 
forward counter also, off Rs6.50 at Rs124.10 on 3.331m shares 
followed by ICI Pakistan and Engro Chemical, lower Rs1.75 and 
Rs2.65 at Rs33.40 and Rs50.85, respectively, on modest turnover.

Hub-Power came in for heavy liquidation, off one rupee at Rs19.90 
on 13.503m shares followed by PTCL, also down by the same amount at 
Rs13.95 on 4.641m shares and FFC-Jordan Fertiliser, lower 60 paisa 
at Rs5 on 1.411m shares.

DEFAULTER COMPANIES: Allied Motors came in for renewed selling and 
was marked down by one rupee at Rs8.75 on 0.140m shares followed by 
Ravi Rayon, unchanged at Rs5 on 66,700 shares, and Suzuki 
Motorcycles, easy 50 paisa at Rs3.95 on 27,000 shares.

Stocks crash on war fear: Index loses 132.5 points
Staff Reporter

KARACHI, May 20: Stocks on Monday crashed under the weight of 
mounting panic unloadings as fears of an imminent Indian attack 
gripped the market followed by free-for-all, which pushed the KSE 
100-share index down by a massive 7.5 per cent or an erosion of 
Rs29 billion from the market capital.

The index at one stage was down by 150 points. However, it was not 
a largest single-session index fall as it had declined by 170 
points on May 30, 2000 after the default of a leading KSE member 
and 8.46 per cent or 129 points on July 10, 1998 when India tested 
its nuclear bomb. But the successive breach of the circuit breakers 
on the blue chip counters both on the ready and forward counters 
did worry leading analysts.

The KSE 100-share index finally finished at 1,647.19 down 132.57 
points as compared to 1,779.76 at the last weekend as only nine 
shares rose fractionally, while 257 fell in a total volume of 71m 
shares, reflecting the absence of bulls. At one stage it touched 
the lowest level of well over 150 points.

Big losers were led by Pakistan Oilfields, PSO, Shell Pakistan, 
Wyeth Pakistan and Lever Brothers, which suffered fall ranging from 
Rs9.60 to Rs16, the largest decline of Rs41.50 being in Wyeth 

PSO, Shell Pakistan, Pakistan Oilfields, Attock Refinery, National 
Refinery, Al-Ghazi Tractors, Millat Tractors, BOC Pakistan, Glaxo-
Wellcome also fell by Rs4.50 to Rs11.10.

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

Trading volume fell to 71m shares as bulls kept to the sidelines as 
compared to 139m shares at the last weekend.

Hub-Power led the list of actives, off Rs1.75 at Rs21.80 on 20m 
shares followed by PTCL, sharply lower by Rs1.50 at Rs15.85 on 13m 
shares, KESC, lower 50 paisa at Rs3.90 on 8m shares, Sui Northern, 
off Rs1.50 at Rs12.10 on 6m shares and FFC-Jordan Fertilizer, lower 
Rs1.25 at Rs5.40 on 5m shares.

PSO led the other actives, off Rs11.10 on 4m shares followed by Pak 
PTA, lower 95 paisa on 3m shares, and Fauji Fertilizer, off Rs3.30 
on 1m shares.

FUTURE CONTRACTS: ICI Pakistan, Engro Chemical and PSO passed 
through successive downward clearing after having broken the 
successive circuit breakers, falling by Rs3, Rs4.55 and Rs11.10 
respectively at Rs37, Rs56.30 and Rs137.45. Others also sustained 
losses of varied degrees.

Hub-Power, fell by Rs1.75 at Rs21.85 on 9m shares followed by PTCL, 
off Rs1.50 at Rs15.90 on 3m shares.

DEFAULTER COMPANIES: Easier conditions also prevailed on this 
counter as prices of actives fell under the lead of Suzuki 
Motorcycles, off 95 paisa at Rs4.25 on 20,500 shares. Ravi Rayon 
was traded unchanged at Rs5 on 73,800 shares.

Back to the top
Truth about Bhopal House
By Ardeshir Cowasjee

As rightly wrote John Donne, one is often diminished by the death 
of a friend. The first time I saw the Princess was in the early 
1950s. A friend took me to meet her and as we approached her house, 
we saw her driving out in her red MG Midget, its hood down.

She stopped her car, leapt out without opening the door, and 
greeted us. She was wearing a silk shirt and a pair of slacks. We 
were welcomed and entertained. She was immensely vivacious, full of 
fun and a most refreshing character. 

Later, over the years, she became my mentor on Islam. Whenever I 
had a problem understanding this great religion as preached by our 
mullas I would consult her, as I recognized in her a practitioner 
of true Islam with a profound knowledge of the history and true 
tenets of her religion.

Abida's grandfather, the Nawab, was the first male to rule Bhopal 
after four successive Begums, and had partition not come upon the 
subcontinent, Abida would have eventually become the fifth Begum to 
rule the state - and a most worthy ruler she would have made. 
Always correct to the point of perfection, in her bearing and 
manners she had few, if any, peers in Pakistan. I last met her 
about ten days before she died. I, and many other friends of hers, 
will sorely miss having her around.

We now go back in time, to the middle of last century. On July 1, 
1947, Hameedullah Khan, Nawab of Bhopal, purchased what is now 
known as Bhopal House, at Clifton, Karachi, from Seth Girdharilal 
Moolchand Mohatta, merchant and landlord of Karachi (one of the two 
properties, the other at 19, Kutchery Road, bought by the Nawab in 
anticipation of his move to Pakistan) for the princely sum of 

A sale deed was drawn up and the title deed for Bhopal House was 
duly registered and the mutation recorded in the sub-registrar's 
office of Karachi district.

On July 6 1947, the "collector and chairman of the Pakistan 
Government Accommodation Committee," one Mr N A Faruqui, addressed 
a letter to the private secretary of the Nawab of Bhopal at the 
Qasr-i-Sultani, Bhopal:

"As you must already be aware, the Pakistan government has selected 
Karachi as the temporary capital. Their stay in Karachi is at 
present expected to last from five to ten years. Superior 
accommodation is immediately required for the honourable ministers 
of the Pakistan government. I am therefore to request you to place 
this letter before His Highness and request him to permit his 
bungalow at Clifton, Karachi, to be used for this purpose. I 
request the favour of a very urgent reply. "Your obedient 

On July 12, the Nawab of Bhopal addressed a letter to Mr M A 

"I have recently bought two houses at Karachi - one for certain 
offices which will have to be opened there when I have received 
your final instructions, and the other I wish to retain and equip 
for my personal use. I may have to be in Karachi quite often and I 
must have a place in Pakistan where my womenfolk may take shelter 
should things begin to get really hot here. I am, therefore, not 
replying at once to Mr Faruqui's letter (copy enclosed) and will 
only do so after I have received your orders.

"Needless to add that if you instruct I should place both the 
houses or one of them at the disposal of Pakistan, I shall do so 
with pleasure. I shall await your urgent instructions as I do not 
want the letter of Mr Faruqui to remain unacknowledged for a day 
longer than it is necessary.

"The bearer of this letter can bring back your reply if it is 
convenient to you to write me a line about it. "With respects....."

Mr Jinnah received the emissary, requested him to return home and 
express to the Nawab his regrets for the manner in which a member 
of the yet to be established Pakistan government had addressed him, 
and tell the Nawab that he should do with his houses as he pleased.

Both properties were subsequently handed over by the Nawab to the 
government for its use. The house at 19 Kutchery Road was occupied 
by Chaudhri Khaliquzzaman, one of the 'honourable ministers' of 
sorts, who later claimed it as evacuee property.

Bhopal House, as of 1948, was occupied by the Foreign Office under 
an agreement reached between the government and the Nawab, who did 
not wish to leave the house unoccupied for fear that it also would 
be claimed by one of the local luminaries as evacuee property - in 
those early years there being much grabbing of properties whether 
abandoned by those who had fled to India or occupied by their 
rightful owners resident in Karachi. Nawab Hameedullah Khan never 
came to Pakistan. 

He died in Bhopal in 1960. But in 1950, when the princes of India 
handed over their states to the Indian government, his eldest 
daughter, and his heir, Princess Abida Sultaan, came to Karachi, 
bought land in the then quiet, peaceful and green Malir, built 
herself a house and settled down to live her life in Pakistan.

Bhopal House was handed over by the government to the Intelligence 
Bureau when the Foreign Office moved to the new capital of 
Islamabad in 1962, and was used as a residence by officers of the 
IB. Some years later, Princess Abida claimed back her property. The 
government was unhappy, and the matter of who should or should not 
have it has been in court for a good few years.

This year the Princess's health declined rapidly. Whilst she was in 
hospital, literally on her death bed, on May 6 the government in 
the form of the Public Works Department served her with an eviction 
notice (her relatives were resident in Bhopal House). Naturally, 
her lawyer replied to the notice, informing the PWD on May 9 that 
the Princess was terminally ill.

She died on May 11 and news of her death was prominently displayed 
in our press. Rather than staying their hand, the matter being in 
court and it having been agreed between Shaharyar Khan, her son and 
heir, and the chief of the IB that no action would be taken until 
the court had come up with a decision, on May 14, one day before 
her soyem was to be held, PWD men accompanied by a police force 
invaded Bhopal House, forcibly entered and evicted the occupants, 
not allowing them to remove their belongings, and then sealed the 
premises which also contained furniture, fittings and personal 
belongings of the Princess, her son, and his family.

The sole official of any government to ring Shaharyar to condole 
with him on the death of his mother was not a representative of the 
government of Pakistan, which both Abida and her son had served as 
diplomats, but Digvijay Singh, chief minister of Madhya Pradesh in 
which Indian state Bhopal is situated.

This of course can neither shock nor surprise nor anger any of us 
citizens of Pakistan who are so inured to the strange vagaries of 
our governments and the men who run them. Decency and decorum do 
not sit easily with officials of Pakistan to whom they are, in 
fact, foreign substances.

Does this government even know what it is talking about? In one of 
its rambling clarifications on its disgraceful behaviour, its 
spokesperson has stated that "the facts are that Bhopal House was 
an evacuee property by operation of law since March 1, 1947." How 
come? Girdharilal Moolchand Mohatta sold the house to the Nawab of 
Bhopal on July 1 of that year, the sale having been legally and 
duly registered. And, then Faruqi addressed the Nawab on July 6, 
1947, on the subject "his bungalow at Clifton, Karachi."

The Pakistani mind does not boggle.

Be it as it may, whoever be right or wrong, my deepest sympathies 
are with Shaharyar and his family and knowing fully well how the 
courts in Pakistan operate, my advice to him is that in his own 
interest he should arrange for his son and heir, Faiz Mohammad Khan 
of Bhopal, who is now 42 years of age, to have all the legal 
documentation completed in the name of his son and heir as the 
rightful claimant.

"The first observation that I would like to make is this: you will 
no doubt agree with me that the first duty of a government is to 
maintain law and order, so that the life, property and religious 
beliefs of its subjects are fully protected by the state." 
(Mohammad Ali Jinnah, in his address to the Constituent Assembly of 
Pakistan, August 11, 1947.) Is it possible for his soul to rest in 

Rising peril, stricken leadership
By Ayaz Amir

If war is too serious a business to be left to generals, what would 
Clemenceau (the originator of this timeless phrase) have said about 
part-time generals? The situation on our borders is grim and could 
well spiral out of control. But more alarming than Indian 
intentions is the sense of drift at home.

This is a time for national unity, for subordinating self-interest 
to the national good. But the military government with its divisive 
policies is ill-suited to deliver this goal. The results are there 
for all to see: a ruling coterie enclosed in a capsule, cut off 
from public sentiment and opinion.

The television pictures of the three meetings Gen Musharraf held on 
Wednesday with media persons, his cabinet and a clutch of leaders 
of B-grade or Tonga Parties said it all. In all these pictures the 
only person shown talking was the Generalissimo. This has been one 
of the problems with this dispensation. Even if Musharraf was a 
Demosthenes or a Cicero there is such a thing as too much talking. 
He has been talking virtually non-stop since the time he seized 
power. And look what a soup the country is in. It's high time he 
did some listening.

At this juncture when only a fool would totally rule out the 
possibility of war, the last luxury Pakistan can afford is part-
timism. Gen Musharraf owes it to the nation to shed his uniform, 
install the best available general - which means no loyal Musa Khan 
- as army chief and himself concentrate on his presidential duties. 
Contrary to what he may fear - yes, the Generalissimo is known to 
entertain fears - this step will be applauded by all Pakistanis and 
will strengthen him more than a dozen spurious referendums.

The next thing the General must do is to swallow his prejudices and 
open lines of communication with the two political leaders who 
still matter the most as far as popular sentiment is concerned - 
Benazir Bhutto and Nawaz Sharif. Far from destroying them, the 
military government by its sorry record has rebuilt their standing 
and credibility. This is the reality on the ground and wisdom lies 
in accepting it. Indeed, getting these two leaders and their 
parties on board is more important at this juncture than relying on 
hopes resting on American intercession.

As for corruption charges against the two leaders, the military 
government having not been an impartial referee is hardly in a 
position to talk of justice and fair play. Let it concentrate on 
repairing internal fissures and manning the nation's defences. 
Other considerations can take a backseat for the moment. 

And, please, an end once for all to reconstruction theories. If 
anything deserves a kick into oblivion at this time it is the 
National Reconstruction Bureau with its half-baked ideas of reform. 
The Constitution too needs to be protected from further mangling, 
no one having the mandate to touch it regardless of the supposed 
indulgence granted by the Supreme Court.

Which Supreme Court? That headed by Chief Justice Irshad Hasan Khan 
who, in his later incarnation as chief election commissioner, has 
certified the referendum to be objective, impartial and 
transparent? Enough of these games. Musharraf should look to the 
crisis the country is in and desist from wasting time on non-
essential issues. The Constitution in any case is not his to play 
around with.

Above all, Musharraf should take political parties which matter, 
rather than Tonga Parties, into confidence and make a categorical 
announcement about party-based elections in October minus the 
constitutional amendments he has spent so much time talking about. 
Leading to those elections the country needs a government of 
national unity with representatives from the PPP and the PML-N 
sitting in it. The corps commanders must not be distracted from 
their professional duties.

In times of war, or impending war, the spirit of a nation counts 
far more than hardware. The best tanks, the latest warplanes are 
important but of no use when spirit and morale are lacking. We at 
any rate being a poor country do not have the best equipment. Our 
greatest strength has to lie in the morale of our fighting men and 
the fervour of our people. But these feelings will not be aroused 
by a military regime which, considering itself infallible and self-
sufficient, is rowing upstream all by itself.

There is no call for false drum-beating on this score. Unless we 
are to fall victims to our own propaganda, we must recognize facts 
for what they are and take urgent measures to overcome our 
weaknesses. The public needs to be aroused out of its torpor, not 
through the meaningless rhetoric to which it has been treated these 
past two and a half years but through sincere attempts at national 

There was no shortage of people who expected a great deal from Gen 
Musharraf when he arrived on the national scene. Now the same 
people feel betrayed as they see the drift engendered by his 
policies. At this hour of national peril, however, Gen Musharraf 
has another chance, probably his last, to do well by his country. 
But only if he can bring himself to sacrifice personal ambition at 
the altar of the national good. Then see what happens. Stirred to 
its depths, this nation will be in a position to break the teeth of 
any Indian aggression. The incessant chatter of using nuclear 
weapons as an option of last resort is a sign of defeatism for it 
implies that we are bound to lose a conventional war. Since when 
has this become the accepted wisdom? We have an army large enough, 
and hopefully strong enough, to foil any aggression. Nuclear 
weapons are for Armageddon. God forbid that that moment should have 
arrived for Pakistan.

All that our armed forces need is the unreserved backing of the 
nation. This they will get when the army command breaks out of its 
isolation and Gen Musharraf draws a line not between his supporters 
and opponents, as he did so disastrously during his ill-starred 
referendum, but between self-interest and the national interest.

The moment this happens, the moment Gen Musharraf steps aside as 
army chief and appoints a full-time successor, and the moment he 
announces his willingness to reach out to Benazir Bhutto and Nawaz 
Sharif, this crisis will abate and the war clouds around the 
Himalayas disappear.

India is taking advantage of our weakness and of the isolation of 
the military regime. The moment it sees national unity at work it 
will have to think twice about engaging Pakistan in war, limited or 

Indeed it is fair to say we wouldn't have faced this crisis if a 
political leadership had been in power. Far from making Pakistan 
strong, military rule has made it impotent. Never was national 
honour so low, or national humiliation so near. We didn't even show 
gumption enough to ask for the right wages for providing loyal 
service in Afghanistan. We thought we had outsmarted India but now 
face an Indian threat more grave than at any time since 1971.

Our military godfathers also thought siding with the US would 
protect our Kashmir policy. They failed to realize that Afghanistan 
and Kashmir were part of the same thinking and that ditching the 
Taliban also necessarily implied ditching the notion of jihad in 
Kashmir. That being the case, we should have readjusted Kashmir 
policy in line with the new realities ourselves instead of having 
to beat a steady retreat, step by step, under external pressure.

These are harsh things to say and maybe difficult to swallow for 
many people. Our notion of patriotism has meant supporting the 
official line no matter how disastrous its consequences. The nation 
rallied behind Ayub Khan even when he blundered into the 1965 war. 
West Pakistan rallied behind Yahya Khan even when he led the nation 
into the humiliation of the 1971 war. The questions that should 
have been asked were not asked when the army command under Gen 
Musharraf blundered into the ill-fated Kargil adventure in 1999.

The stakes are much higher this time if only because to the 
periodic war-mongering, which seems to be the dismal fate of the 
subcontinent, there now has been added a nuclear dimension. Two 
monkeys slashing the air with nuclear razors: the prospect is 

It is obvious Pakistan can afford no misstep or miscalculation. But 
more importantly, it cannot afford anything that induces or 
reinforces national weakness. It needs a full-time army chief for 
whom military manoeuvring takes precedence over political 
manoeuvring. And it needs a political compromise (call it historic, 
if you will) that heals the nation's internal wounds and in this 
hour of peril forges national unity. To politicking and the pursuit 
of narrow self-interest we can return when this crisis is over.

Mideast peace prospects
By Henry A. Kissinger

At long intervals, the cauldron of the Middle East generates an 
opportunity for a possible breakthrough. It usually occurs after an 
explosion that brings home to the parties their necessities as well 
as their limits and permits a balancing of concessions with the 
help of interested bystanders. The Middle East conference called by 
US secretary of state Colin Powell may relate occasion to 
opportunity. But for this to happen, it is important to be clear 
not only about the opportunity but also about its limits.

A broad-based Middle East conference is not the most appropriate 
forum for achieving a comprehensive solution, and the United States 
has generally avoided them. For the composition of such conferences 
tends to isolate America. The vast majority of the potential 
participants in the proposed conference - the European Union, the 
United Nations, Russia, moderate Arab states and Israel - will, in 
the quest for a comprehensive solution, endorse variations of the 
Saudi plan: a return by Israel to the 1967 borders, a partition of 
Jerusalem, elimination of Israeli settlements, in exchange for 
"normalization," "recognition" and security guarantees, none of 
which has been defined.

I have known Israeli prime ministers and chiefs of staff for 40 
years; none has ever considered these lines defensible. 
Demarcations that leave a corridor of only eight miles between Tel 
Aviv and Haifa and the road to Jerusalem within hundreds of yards 
of Arab outposts have not gained attractiveness after 18 months of 
intifada and suicide bombings. For its part, the United States has 
supported the phraseology of UN Security Council resolutions 
calling for "secure borders," not necessarily those of 1967. The 
quest for a comprehensive solution thus sets up precisely the US-
and-Israel-versus-the-world equation, which jihadists seek to 

Nor is a general conference the best forum to induce compromise 
regarding a comprehensive agreement. In the face of broad-based 
opposition, Israel will dig in reflexively. Under pressure from 
radical colleagues, the moderate Arab participants will not modify 
their position. This is why the United States saw to it that 
previous general conferences were token. The Geneva conference of 
the 1970s met only once in a plenary session, after which the 
negotiations for two disengagement and two political agreements, 
culminating in a peace agreement with Egypt, were conducted in 
separate forums. And the Madrid conference of 1991 led to the PLO-
Israeli agreement negotiated in Oslo under Norwegian aegis without 
reference to the original meeting.

If the proposed conference pursues a comprehensive solution, 
deadlock is certain. And that will sooner or later generate demands 
to impose the terms on Israel. But if imposition is the aim, a 
conference is unnecessary; the United States could do that on its 
own. The 1967 lines in Palestine have never been international 
borders; they were the armistice lines of the 1948 war. No Arab 
state accepted them even when they were the official demarcation 
line or before the Beirut summit in 2002. None of the Beirut summit 
states except Egypt and Jordan have, to this writing, recognized 

While Prince Abdullah deserves credit for stating a willingness to 
accept Israel under some conditions, the substance of the Saudi 
plan is inherently one-sided. Israel is asked to cede territory - a 
tangible and irrevocable act; the Arab states in return offer 
normalization and recognition, which are psychological and 
revocable. And the content of normalization has never been defined. 
Israel was established by a UN resolution in 1948. No other members 
of the United Nations have been asked to pay a premium for 
recognition, the refusal of which implies a right to extinguish a 
state's legal, if not physical, existence. Nor are Palestinian 
leaders in a position to make a general agreement. No Palestinian 
leader has been willing to renounce the right to return even when 
he acquiesces into it de facto. This implies an option to overwhelm 
Israel demographically.

A fashionable argument is to invoke the Camp David talks of 2000, 
during which Israel proposed giving up 94 per cent of the West 
Bank, and the subsequent Taba talks, which raised that percentage 
to 96 per cent, as proof that the Saudi plan is not so far from 
reality. But the Taba "agreement" is a strange concoction. 
Negotiated in the last weeks of the Clinton presidency and while 
Israeli Prime Minister Ehud Barak was heading for an overwhelming 
electoral defeat, no written record of the agreement seems to 
exist; no map reflecting what the percentages represent has ever 
been published. 

The Israeli proposal - which, it must be remembered, was a minority 
position within Israel and was rejected by Arafat - was based on 
the assumption that major territorial concessions would change the 
psychological framework and result in genuine coexistence. It 
cannot be resurrected after months of suicide bombings; it could 
come about, if ever, only at the end of an extended period of 

Should the United States or an international consensus pursue a 
comprehensive agreement nevertheless if only, as some claim, to 
save Israel from a strategy that is multiplying its enemies and 
eroding America's position in Islam? Imposition of the Saudi plan 
would not reconcile the Arab world, however. Whether the United 
States garners credit in the Islamic world for diplomatic 
initiatives will depend on the perception of the choices available 
to us. An imposition viewed as having been extorted by Islamic 
militancy would encourage the jihad groups around the world, that 
would demand the destruction of Israel next. It would not even help 
Arab moderate leaders. For to the extent that militant Islam gains 
momentum, the position of moderate Arab leaders is progressively 
undermined. And it would gravely weaken America's war on terrorism.

Imposition would break Israel's psychological back. For Israel to 
end the period of the intifada with borders considered insecure, 
abandonment of all settlements and the partition of Jerusalem would 
transform it into a client state of America, totally dependent on 
our military support in every crisis by means of a defence 
agreement (useless against suicide bombers); it would surely lead 
to an upheaval in Israeli society, wrecking its morale and its 
faith in the future. This in turn would tempt those in the Arab 
world who would treat an agreement as an interim stage in the 
destruction of Israel.

American influence - and if they understand their interest, that of 
our European allies as well - is enhanced to the degree that our 
diplomatic initiatives are perceived as resulting from free choice 
and not either from terrorism or other pressures, such as oil 

The American strategy should be to help bring about a change in the 
calculations that have produced the current impasse and not a paper 
plan reconfiguring conventional wisdom. America must urge a 
strategy reflecting the fundamental reality: that progress toward a 
settlement can come only by stages, and that the quest for a 
comprehensive peace in the abstract will guarantee another 

At this stage of the Middle East crisis, the fundamental challenge 
is to establish a framework for coexistence for the two sides. Only 
then is it possible to address the long-term issues of peace 
realistically. America's special position obliges it to act as 
mediator but also to define the limits of its mediation. The 
moderate Arab nations must understand that the United States is not 
able to obtain their maximum program for them but will do its 
utmost to achieve more than they can hope for without American 
mediation. And Israel must accept that the status quo is not 

The quest for an overall settlement is equivalent to an extended 
stalemate, in the course of which a desperate Israel may seek to 
weaken its neighbours to a point where the terms in dispute become 
irrelevant. Thus Arab countries should have an interest in an 
interim outcome, for a continuation of the present crisis threatens 
the future of moderate Arab regimes. Thus, while keeping open an 
ultimate comprehensive agreement, the only feasible strategy for 
the United States at this point is to strive for peaceful 
coexistence; comprehensive peace should then be the next stage 
after a specified interval, during which new conditions have been 
created on both sides of the dividing line.

In outline, such an interim agreement would bring about a 
Palestinian state on territories substantially larger than those 
controlled by the present Palestinian Authority - though short of 
the 1967 borders - with a contiguous territory ending the many 
Israeli checkpoints. It would end new Israeli settlement and leave 
those outlying settlements that choose to remain the option of 
being evacuated or living under Palestinian rule. This is the 
maximum Israel can concede under present conditions and a great 
step forward for the Palestinians. Whether the area between the 
borders of the Palestinian state and the 1967 borders could be 
constituted as a buffer zone with a special status deserves 

In return, the Palestinians would need to stop hostile propaganda, 
abandon terrorist bases and end terrorist attacks on Israeli 
territory. To accomplish this, the Palestinian Authority would need 
to reconstitute itself in a way that generates confidence in its 
ability to honour its obligations and to establish a functioning 
state on democratic and representative foundations.

Such an interim agreement is the only conceivable outcome that has 
any chance of being negotiated relatively rapidly and of lasting 
for some period. It contains an equilibrium of concessions; it 
provides a framework within which coexistence can be tested and 
from which a comprehensive agreement can emerge.

Thus, the proposed conference can play a useful role if it adopts a 
division of labor:

(a) The United States would play the principal mediating role in 
the negotiation of an interim agreement, buttressed by a general 
statement of objectives for the overall goals, providing a link 
between an interim and a comprehensive settlement. Our European 
allies could contribute by suspending the flood of plans by which 
they seek to improve their position in the Arab world but in 
reality radicalize it by raising unfulfillable expectations.

(b) Because the distrust between the parties is so great, Israel 
will not accept the word of the existing Palestinian Authority. But 
since it is inappropriate for Israel to designate the leaders with 
whom it is prepared to negotiate, the Arab states participating in 
the conference should guarantee the Palestinian Authority's 
commitments and facilitate the negotiations.

(c) Europe and the United Nations, backed by the United States, 
could generate an international commitment to assist in the 
creation of a viable Palestinian entity, at first under an interim 
agreement and later on when a permanent settlement is reached. That 
commitment would imply a level of assistance that could be 
effective only in the context of a new set of institutions, in the 
creation of which the conference - or a relevant subgroup - could 
play a major role. The criteria for attracting international 
support must seek to provide what the Palestinian Authority lacks 
now: a legislature responsible for the designation of the 
executive, an administrative structure beyond corruption and a 
system of laws.

In this manner, the conference could help bring about a 
reconstituted Palestinian Authority, more predictable and capable 
of a genuine cooperative relationship. In this manner, the 
conference could provide an interval that makes it likely that the 
final step toward an overall agreement will be taken in conditions 
less shadowed by hatred and bloodshed and by leaders on both sides 
less encumbered by the battles of the past. - Copyright Los Angeles 
Times Syndicate International

PHF guilty of hockey's downfall in Pakistan 
By Ali Kabir

KARACHI: Hockey which was and is still our national game is in 
doldrums because Pakistan Hockey Federation (PHF) has lost 
direction, and is being run by people who have little or no 
background of the game.

The President of (PHF) Gen Mohammad Aziz Khan who holds one of the 
most important posts in our defence establishment cannot devote 
himself full time for the promotion of the game.  He can at best 
provide the guidelines and help the PHF Secretariat run the day to 
day affairs. To expect anything more than that from the general 
will be asking too much.

It is an irony that he picked Brig Musarratullah Khan as secretary 
who for all practical purposes is the executive head. He has failed 
so far in every department except that he is too willing to 
accompany the team on foreign tours. 

His act of taking over as manager of the team just about a week 
before the Sydney Olympics was nothing but sheer folly.

Musarratullah did not know what is the importance of a manager at 
the world level competition.

The PHF after the Sydney debacle made some changes in the setup 
bringing in new selection committee and new coaches to prepare the 
team for the Kuala Lumpur World Cup. One of the coaches, Shahbaz 
Ahmad, manipulated to become a member of the playing team. This was 
a history created by the PHF as never before a coach had donned the 
national colour.

The result was a foregone conclusion and everybody in the PHF 
showed full faith in the team which finished a dismal fifth.

Every country as a matter of principle works out a plan for the 
next Olympics or the World Cup by infusing new blood. Nothing of 
the sort was done by the PHF as it recalled all the team members of 
the Kuala Lumpur World Cup. 

As if it was not enough it recalled even those players who were not 
selected for Kuala Lumpur in preparation for the Commonwealth Games 
scheduled to be held at Manchester (UK).

The PHF appointed a new selection committee headed by the minister 
for sports Col (Retd) S.K. Tressler with Abdul Rashid Jr and 
Islahuddin former Pakistan captains. 

I can bet that the selectors cannot recognize the players that they 
have called for the camp. 

Rashid Jr was away from the country and therefore has no following 
at present. Islahuddin is perhaps the only selector who has some 
background of the players.

The PHF perhaps is bent upon creating history. It has appointed 
Tahir Zaman as the coach of the team. First of all what is the 
qualification of Tahir Zaman. 

According to Pakistan Hockey Federation he is a qualified FIH 
coach. It may be a sacred thing for the PHF but the fact is that it 
has no credentials.

Nobody knows what is Tahir Zaman's ranking if at all it is taken 
into consideration. His only achievement as a coach is that he was 
coach of the junior team which failed to qualify for the Junior 
World Cup.

The so-called FIH certified coaches has four categories - Trainer, 
Coach, Coach Grade I and Master Coach. 

The coaching certificates are awarded by the FIH after every two 
years following a seminar which hardly last three days. Is just 
three days training at a seminar good enough to train a national 

Another flaw in the appointment of Tahir Zaman as coach is that 
about half a dozen players have been his team-mates which is bound 
to create disciplinary problems.

The PHF set up should know it that though Pakistan dominated world 
squash for decades it never got the recognition of national game. 
It was hockey and will remain so unless it remains in the hands of 
people like Brig Musarratullah and Brig Khalid Sajjad Khokhar who 
appears as the king pin of every sport. 

One day Khokar becomes manager of the hockey team and the next day 
he takes over the management of boxing and then becomes a senior 
office-bearer of tennis federation.

Former secretary of the PHF and vice-president of the FIH Brig 
(Retd) M.H. Atif played a major role in the decline of Pakistan 
hockey when he took over the reins in late 70's after the Buenos 
Aires World Cup.

He gradually reduced the Pakistan hockey to camp training. The 
entire structure of the game was gradually destroyed and as a 
result of non serious domestic competition, the talent of Pakistan 
hockey was reduced to at the most 36 players. 

This situation is continuing now for almost a decade. Unless some 
one picks up the courage and has farsightedness and plan, the state 
of Pakistan hockey will never improve. In fact it is declining day 
by day and one cannot see any ray of hope with the present PHF set 

Waqar be named captain for World Cup 
By Salahuddin Sallu

Before going through the review below, I would like to draw the 
attention of the readers to the following two factors. Firstly, 
when the Pakistan cricket team was on its way, the bomb blast 
incident at Karachi arrested the winning momentum.

Secondly, my suggestion to the cricket authorities is to 
concentrate on facing the best cricket playing countries on 
international standard wickets. Only such tough assignments will 
equip the team for the formidable challenge like the World Cup 2003 
in South Africa.

Pakistan's cricket team is on a triumphant track these days which 
augurs well for the future. The credit for this largely goes to 
Waqar Younis who has shaped the team into a well-knit unit.

It is time, I think, Waqar should be appointed as captain for the 
World Cup. Unless he has full confidence of the PCB he will not be 
able to wield the necessary authority. We have the example of Imran 
Khan before us who was unconditionally vested with all powers as a 
result of which the players were disciplined and performed to the 
best of their abilities. But Imran never abused his authority and 
never preferred his personal choice over national interest. Hence 
the consequential march to memorable victories. Let me in passing 
mention that Imran didn't have the team that Intikhab Alam had with 
Majid Khan, Sadiq Mohammad, Zaheer Abbas, Mushtaq Mohammad, Asif 
Iqbal, Wasim Bari, Imran Khan and Sarfraz Nawaz etc. What made the 
difference was the degree of confidence generated by the 

Waqar has definitely emerged as a competent and capable leader 
notwithstanding the mistake of dropping Wasim Akram and Saqlain 
Mushtaq in the Asian Test Championship for which the selectors were 
also to blame. His bowling, field placing and above all confidence 
building so convincingly displayed in the case of Inzamam-ul-Haq 
when he was passing through a lean patch and was under great 
pressure, showed the calibre of the man.

Waqar actually nursed Inzi upto the stage when he came into his own 
and played a memorable innings. Equally reassuring was Shoaib 
Akhtar's resurgence as a match winner for which Pakistan Cricket 
Board (PCB) chief Lt-Gen Tauqir Zia deserves praise.

The PCB boss went all the way to overcome a series of crises and 
took a commendable and courageous stand, not only for the paceman's 
survival but his stunning success at last. What the PCB Chief did 
to save this valuable asset outmatched Sri Lanka's sustained effort 
to shield Muttiah Muralitharan.

As I have pointed out earlier every player of the Pakistan team is 
showing his full form whether openers or middle order batsman, 
Inzamam, Yousuf Youhana and Younis Khan and in bowling the greatest 
of them all Wasim Akram, Waqar, Shoaib Akhtar and Saqlain are all 
doing their best. This is the mark of a good team.

I was, however, struck by the statement of the coach, Mudassar 
Nazar, who seems intoxicated with victory. Without denying credit 
to him or the players such premature claims against Australia at 
this stage were not in good taste.

He should not challenge the critics, leaving this task to the PCB 
officials and concentrate on the enormous responsibility in his 
hands. Let us not forget that the series we have so far wonin 
Bangladesh, Sharjah and Pakistan were all played on low bounce 
wickets and against modest oppositions. Moreover, New Zealand 
played minus their top eight players including stars like Chris 
Cairns and Shane Bond just to fulfill their commitment for which we 
should be grateful to them. They could as well have trotted out on 
lame excuses like India.

At the moment the team is at it's peak and with the return of Saeed 
Anwar it will be further strengthened specially in batting 
department. If we look around at the history of our cricket we have 
most often been let down by our batsmen. Whenever they gave their 
bowlers a reasonable chance and a sizeable score to proceed they 
came up with success.

When batsmen and bowlers are both delivering the prospects are 
definitely bright. The vagaries of weather do not matter for 
professional cricketers.

Ahmad explains decision to return
Sports Reporter

KARACHI, May 19: Recalled goalkeeper, Ahmad Alam, said he had opted 
to come out of retirement as he now felt he could serve the sport 
for at least another couple of years.

The former captain had hung his kickers last August after his 
team's poor showing at Azlan Shah Cup in Kuala Lumpur, citing a dip 
in his form. Pakistan finished fourth and Ahmad conceded 25 goals.

He was, however, named the best goalkeeper of the four-nation 
tournament in Hamburg, Germany, just weeks before the event in the 
Malaysian capital.

Ahmad was among the 31 probables who were invited by the Pakistan 
Hockey Federation to attend second phase of the camp for the tour 
to Spain and Manchester Commonwealth Games in July.

Ahmad is the second present day player to reverse his decision and 
make himself available. Shahbaz Ahmad also made a comeback last 
year before once again announcing his retirement earlier this 

Although the veteran keeper has earned the selectors nod after 
remaining out of international hockey for almost nine months, he 
will have to prove more worthy than Mohammad Qasim and Salman 
Akbar. However, given the fact that both Qasim and Salman are 
injured, Ahmad may sneak into the final 16-man squad for the trip 
to Spain and Manchester.

"I will certainly join the camp. It was just a bad patch that I 
experienced last year. Now since I have regained my form and have 
maintained my fitness, I have decided to resume international 
hockey again," Ahmad said.

Ahmad was a member of the PIA hockey team that retained the 
national title at Lahore last month.

"Although it depends on form, physical fitness and reflexes of a 
goalkeeper, I think I still have two or three years of hockey 
left," said Ahmad, who skippered the team for 18 months from 2000 
to 2001.

The 30-year-old custodian, who made his international debut at a 
six-nation tournament in France in 1990, however, did not regret it 
was a hasty step he took last year.

"It was a perfect decision. My performance during last year was at 
its lowest ebb. I think it was right what I did in those 
circumstances," the goalkeeper, who has earned 146 caps during his 
12-year-long career, said.

Another reason to call it a day was to pave way for younger 
players. But now Ahmad felt he was ready to face any challenge and 
would like to make room after going through all the rigours of 
training and competing with others.

"I will not ask a guaranteed place in the team. Instead I like to 
compete along with other goalkeepers and then play for the national 
side which will be an honour for me," he said.

Isolation of Pakistan unjustified
Sports Reporter

ISLAMABAD, May 20: Pakistan cricket chief Lt. Gen Tauqir Zia said 
that terrorism was a global problem and any attempt to isolate 
Pakistan's cricket because of it was not right.

"No country is safe from terrorism but that does not mean cricket 
should suffer," he told a news conference. "The law and order 
situation in India is bad and there has been violence in Sri Lanka, 
however cricket has never been hampered."

Speaking 10 days after New Zealand aborted their tour of Pakistan 
following an attack by a suicide car bomber outside the team hotel 
in Karachi that killed 14 people on the morning of the second Test 
Tauqir said no one had an answer to such attacks.

With a question mark now also hanging over this fall's tour of 
Pakistan by Australia, Tauqir said he has had no negotiations with 
the Australian Cricket Board in this connection. "I don't think we 
need to request anybody to play us, if any country does not fulfil 
its commitment we have to take up the matter with the ICC 
(International Cricket Council)."

Some of the top Australian players including Shane Warne and Mark 
Waugh have already made up their minds not to tour Pakistan and 
have said their lives were more important than cricket. But Tauqir 
said that security to all visiting teams would be provided but 
still if they do not tour then it is the ICC that has to settle the 
matter. "We will approach the ICC and seek compensation and will 
also not sign the 10-year program."

Asked if he was considering playing Australia on a neutral venue, 
he remarked: "With the World Cup coming up, my priority is cricket 
and I have spoken to Malcolm Gray (ICC chairman) who is of the view 
that tours should continue."

Tauqir pointed out that there was no money advantage playing on a 
neutral ground while the "home advantage" was identical for both 
sides. Pakistan earlier this year played the West Indies in 
Sharjah, after the Caribbeans refused to come down here for a Test 

The general said that the PCB would consider any request from 
Australia for a choice of venues. "I wouldn't say Karachi would be 
omitted because of the recent bomb blast, as it is a big centre."

Tauqir said that he would want paceman Shoaib Akhtar to take five 
wickets at the speed of 90 miles an hour rather than watching him 
end up with no wicket at all at 100mph.

Shoaib unofficially broke the 100-mile speed barrier during the 
third one-day International against New Zealand last month, in a 
match in which he took no wicket.

"I want to see him take wickets at whatever speed," he said.

Asked why the PCB had not made any attempt to have Shoaib's record 
recognized officially, Tauqir said that it was a petty matter for 
which a fight couldn't be put up with the International Cricket 
Council (ICC)

The General said the PCB was considering insuring future series at 
home in the wake of the aborted New Zealand tour this month. He 
said no series in the past had been insured but now this aspect was 
being given serious consideration. "I think it will be good if we 
do it, however we have to look at what we have to give and what we 
get in return."

Although Tauqir said that profit and loss from the New Zealand tour 
was still being worked out, he felt that the PCB had earned a 
marginal profit. 

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