DAWN WIRE SERVICE

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Week Ending : 14 December, 1995 Issue : 01/49

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The DAWN Wire Service (DWS) is a free weekly news-service fromPakistan's
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C O N T E N T S

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NATIONAL NEWS

------------------------- Karachi Carnage ..........Sixteen shot dead, two vehicles set ablaze ..........Orangi women flay ‘police excesses’ ..........50 MQM workers, relatives arrested ..........Dehlavi says US statement ‘significant’ Details pertaining to the deaths of Altaf’s brother and nephew ..........Altaf’s brother and nephew arrested ..........Altaf slates arrest of family members ..........Rangers deny arrest of Altaf’s brother ..........Kidnapping: PPP leader’s version ..........Altaf’s brother, nephew found dead ..........MQM announces three days mourning ..........MQM calls off Tuesday’s strike ..........MQM’s statement on murders ..........Altaf want’s registration of murder case ..........PM condemns killing of Altaf’s relatives ..........Nawaz condoles deaths ..........Shah grieved at murders ..........Babar blames vested interests ..........Leaders condemn murders ..........Murders setback to efforts for peace: Azfar ..........Police receive Altaf’s complaint ..........Law enforcers alerted for funeral ..........People being ‘bared’ from attending funeral ..........Thousands attend funeral ..........Altaf appeals to leaders Opposition ..........PML urges govt to defer PTC privatisation ..........Nawaz opposes COAS term extension ..........PML chief criticises govt on human rights ..........PML rejects govt offer for negotiations Ruling Party ..........PM renews talk offer to MQM ..........PM blames foreign agents for terrorism ..........Law and Order has improved, say’s Benazir ..........Benazir formally invites Nawaz for parleys ..........Mumtaz meets PM amidst speculations ..........Govt’s conditional offer to opposition MPA’s protest torture of MQM leader Embassy blast probe in advanced stage: Kayani Qureshi feels threatened by narco-terrorists Nawaz’s threat to dislodge govt flayed Cabinet spurns FACC move on asset issue Situation ‘extremely disturbing’: US Govt sees statement as ‘interference’ Moeen suggests mediation to break deadlock COAS urged to order probe into excesses allegations ---------------------------------

BUSINESS & ECONOMY

--------------------------------- IMF grant $596m stand-by loan Forex reserves fall to Rs 28.861bn Moeen sounds a warning bell on Karachi situation LHC declares banking tribunal law defective Stocks easy as volume soars to 29.2 million Institutional funds to be released in 30 day’s. Cash flow problem delay’s implementation of projects Govt plans to print new currency, bank notes Devaluation fails to achieve export targets SBP increases cash reserve requirement New package to improve stock market Trade imbalance swells to $1.73bn during July-Nov SBP allows direct repayment of debt through export bills Banks advised not to penalise depositors Record rise in share value of BOC Pakistan ---------------------------------------

EDITORIALS & FEATURES

--------------------------------------- The bare bones - 3 Ardeshir Cowasjee Illegal aliens amongst us M.B.Naqvi The way to peace in Karachi Mahdi Absud A nation forgetful of it’s advantage Ayaz Amir National crisis in perspective Syed Shahid Husain Credit control - and growth Editorial Column Wrong economic remedies Sultan Ahmed -----------

SPORTS

----------- Test in N.Z. evenly balanced as Pakistan collapse Pakistan strikes back in test against N.Z. Pakistan in commanding position against N.Z. Pakistan on course to win New Zealand test Pakistan wraps up Test win in New Zealand Imran say’s Pakistan cricket in a mess


NATIONAL NEWS

=================================================================== 951214 ------------------------------------------------------------------- Sixteen shot dead, two vehicles set ablaze ------------------------------------------------------------------- Staff Correspondent Sixteen people fell victim to on-going violence while arsonists setablaze two public vehicles and tried to disrupt the vehicular trafficin parts of the city. Heavy exchange of fire took place between apolice party of Latifabad and unidentified armed youths following araid for the arrests of wanted MQM youths. KARACHI, Dec. 7: An MQM activist killed and another critically woundedduring an encounter in Baldia Town. Police claimed they surrounded NewLabour Square in Rasheedabad after a tip-off that two terrorists wereroaming there to commit a robbery. In the shootout, Abdul Aziz and Sharafat Ali were wounded. They werefirst taken to nearby Murshed Hospital and later shifted to CivilHospital. Sharafat Ali succumbed to his injuries at Civil Hospitalwhile the condition of Abdul Aziz is still serious. Police found two pistols and four bullets from their possession. HYDERABAD, Dec. 7: A heavy exchange of fire took place between apolice party of Latifabad and unidentified armed youths following araid for the arrests of wanted MQM youths. Information pertaining to the whereabouts of Qazi Nadeem, an MQMworker was received by the Latifabad police resulting in a heavycontingent of police arriving at the spot and cordoning off the entirearea. Firing started in the area with the arrival of the police. Whenthe police challenged the miscreants, they took to their heels in theby-lanes. Latifabad police reportedly took four persons into custody anddetained them at B-Section police station for interrogation. Theirnames could not be ascertained immediately. KARACHI, Dec. 9: Four people fell victim to on-going violence whilearsonists set ablaze two public vehicles and tried to disrupt thevehicular traffic in parts of the city. A body was found in Liaquatabad, stuffed in a gunnybag. The cause ofdeath could not be known as there were no apparent marks of injury. Gul Haider, was shot dead at Mehtab Fabrics. Police suspect an oldenmity as the prime motive of the murder. A pedestrian Munir Ahmed was killed in Shershah when unidentified menresorted to indiscriminate shooting in the night. A passenger bus and a minibus were set ablaze in Saeedabad. Policearrested two suspects when they tried to set another bus on fire inNazimabad. The police refused to disclose their names. Arsonists also attempted to set a cargo trailer on fire in Korangi butfire fighters salvaged the vehicle. KARACHI, Dec. 10: Random violence claimed seven lives, including thatof a woman. Four of them were killed in Orangi, and another two diedin Liaquatabad when a police armoured personnel carrier allegedlyopened indiscriminate fire. Arsonists set on fire seven public and private vehicles and the AlliedBank’s Frere Road branch while sporadic gunfire echoed in parts of thecity. Police found four bullet-riddled bodies in parts of Orangi. One ofthem was identified as that of Wakil Hussain, a PPP worker and memberof the Salam group. Two labourers were shot dead in Mujahid Colony. Shabbir Ahmed, waskilled outside his residence while Mohammad Hassan was found dead inthe same street. They were victim of targeted attacks. Their politicalaffiliations could not be known. Two people were killed in Liaquatabad when police allegedly openedfire in the locality. Yaqub Zafar, was reading a newspaper in his homewhen he was hit by a bullet. Noor Mohammad was a pedestrian. KARACHI, Dec. 11: In random acts of violence, two people were killedwhile arsonists set ablaze three vehicles, a petrol pump and a postoffice. A fire brigade came under fire at Gujar Nullah, but all the firefighters in the vehicle escaped unhurt. A young man was killed and a ranger wounded in Usmanabad in thejurisdiction of Kalakot police station. Police claimed the victim,Syed Nasir Ali had fired at the rangers. In the shoot-out, he waskilled and a ranger, Khalid Mehmood, was hit in the leg. Police claimed to have found a pistol and some bullets from hispossession. A body was found in Liaquatabad. It was later identified as that of Safir Ahmed. Three vehicles were set on fire in Buffer Zone and in Kharadhar. Arsonists set ablaze a petrol pump in Arambagh and a post office in Azizabad. Fire fighters saved the petrol pump from destruction butadmitted that the fire destroyed its office and hundreds of tins oflubricants. KARACHI, Dec. 12: During the day, three people were killed by thepolice while a bus conductor was tortured and strangulated in randomacts of violence. A dead body was found in Manghopir. In parts of the city, APC personnel also exchanged fire with the armedyouths. Arsonists set ablaze a store of Pakistan Telecommunication anda jeep in Malir and a truck in Qasba. In Liaquatabad, three people were killed and their fourth companionwas wounded in a shootout. According to police, these four peoplewere travelling in a stolen car from Liaquatabad after shooting atrangers and police at a number of places. When it crossed the bridge,a police party tried to stop it, but the police said the car occupantswhile fleeing fired on them. The police returned the fire and the taxiwent out of the control of the driver and hit an island. All thepolice bullets hit the back of the taxi killing its three occupants —Zahid, Kamran Khan and Kamran, instantly and wounding their fourthcompanion, Arif. Three pistols and an AK-47 rifle were found from their possession. 951208 ------------------------------------------------------------------- Orangi women flay ‘police excesses’ ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 7: Scores of women, all residents of Orangi town, onThursday held a demonstration in front of Karachi Press Club againstcontinuing police “high-handedness”. Talking to Dawn, Asma Begum, mother of eight children, said the Orangipolice had arrested her husband, Shamim Akhtar, two days back. Later,they raided the house and picked up Mohammad Ashraf and MohammadNasim, brothers of her husband. “I have four sons and four daughters. My husband is detained fornothing. Mohammad Navid, 11, my eldest son, is the only bred-earnerwho works at a embroidery shop,” she added. She alleged that the police were demanding Rs. 50,000 against therelease of her husband. “But it is difficult for me to pay a singlerupee to them,” she added. Another women mentioned that Tahir, 20, was picked up by a policepatrol on Tuesday. She said Tahir had been detained in Mominabadpolice station. On Wednesday, she said, the police had implicated him in a murdercase. “The police have demanded Rs. 100,000 for his release,” sheadded. The father of Shahid Khan, said the police had picked up Shahid duringa siege-and-search operation a week back and destroyed his ID card. Mohammad Abdul Jalil, a retired armyman, alleged that the police hadfired at his house on Thursday and terrorised his family members. About police, he said they behaved harshly. “They have no respect forwomen and abuse them,” he added. 951212 ------------------------------------------------------------------- 50 MQM workers, relatives arrested ------------------------------------------------------------------- Staff Correspondent MIRPURKHAS, Dec. 11: Heavy contingents of police led by a sub- divisional magistrate raided various localities late on Sunday nightand rounded up about 50 people after unknown miscreants had set onfire a railway bogey. The arrested people included relatives of MQM workers and itsactivists. CONDEMNED: MQM’s former zonal organiser Lawyer Anees Ahmed Khan andmembers of the zonal committee, in a Press statement issued here onMonday, have condemned the raids on the houses of the MQM workers andarrest of their relatives. 951213 ------------------------------------------------------------------- Dehlavi says US statement ‘significant’ ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 12: Chief MQM negotiator Ajmal Dehlavi described as“significant” US State Department official’s statement in which he hasdeplored violence in Karachi and called upon the government and theMQM to resume talks. The statement, he said, was significant because it mentioned“extrajudicial killings, extortion and custodial deaths by securityforces.” When his attention was drawn to the need for resuming the stalledtalks, Mr Dehlavi said “the MQM is always ready for negotiationsprovided they are held with sincerity of purpose and the use of forceagainst Mohajirs is stopped forthwith. Mr Dehlavi contended that if the government was sincere aboutnegotiations, it should honour its promises. Political observers were of the view that following the StateDepartment’s “very strong” remarks the two sides might soon be talkingto each other. 951208 ------------------------------------------------------------------- Altaf’s brother and nephew arrested ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 7: MQM chief Altaf Hussain’s elder brother Nasir Hussainand his young son were arrested by rangers during raids on theirSamnabad residence during the last 48 hours. Heavy contingents of rangers raided the residence of Nasir Hussain andarrested his young son, Arif Hussain. The troops again visited thehouse and picked up the father himself. Rangers were not available to comment on the arrest of Nasir Hussainand Arif Hussain. Nadeem Nusrat, personal secretary to the self-exiled leader, claimedthat rangers also raided the Gulshan-i-Iqbal residence of SalehKhatoon, sister of Altaf Hussain, and ransacked the house when theydid not find the family. The family, he said, had abandoned their Gulshan-i-Iqbal residencefearing a raid. Mr Nusrat claimed that young Arif Hussain was beingtortured in the interrogation centre of the rangers. “A day after ArifHussain’s arrest, a government informer visited the Samnabad residenceand told the family about the torture,” he said. The MQM chief has 10 brothers and sisters. Some of them are outsidePakistan while others are living in Karachi with their families. 951209 ------------------------------------------------------------------- Altaf slates arrest of family members ------------------------------------------------------------------- Staff Correspondent LONDON, Dec. 8: Mohajir Qaumi Movement chief Altaf Hussain has saidthat political victimisation by the government against him and hisfamily members would not deter him from his path. The MQM leader alleged that both Nasir Hussain and nephew ArifHussain, who were arrested earlier, were being subjected to physicaldiscomfort and torture. Mr. Hussain said he has not compromised on Mohajir rights and hispersonal grief would not cause him to do so now. He is not at all sadover the arrest but is proud to share with his community thesacrifices many Mohajirs have made for the cause, he said. He warned against despondency and said that cowardly acts will notbreak his determination. 951209 ------------------------------------------------------------------- Rangers deny arrest of Altaf’s brother ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 8: The rangers denied on Friday night that they hadarrested either the elder brother or the nephew of MQM chief AltafHussain. The rangers denial sparked a fresh controversy as the MQM claimed thatthere were several witnesses who saw rangers and police taking awayNasir Hussain and his son Arif Hussain, brother and nephew of MQMchief Altaf Hussain. It appealed to the President to help save the lives of Nasir and Arif,and added that if anything happened to them, he (President) would beresponsible for it. The MQM fact finding committee said rangers, had raided the house ofNasir Hussain on Tuesday and arrested his son Arif. In the second raidon Wednesday they had also arrested Nasir, it claimed. 951210 ------------------------------------------------------------------- Kidnapping: PPP leaders’ version ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 9: PPP MNA Muzaffar Ali Shujra and a special assistantto the Sindh chief minister, Ejazul Hasan, and others alleged that theMQM chief Altaf Hussain himself had got his elder brother and nephewkidnapped. In a lengthy statement, they said Mr Hussain had developed some severedifferences with his elder brother, Nasir Hussain, as the latter haddeclined his offer (Altaf) for leaving the country. They alleged Nasir Hussain and his son, Arif Hussain, were kidnappedon instructions issued from London. “The government is trying hard torecover them immediately as it fears that they might be killed tosatisfy his (Altaf) whims. After murdering them, he (Altaf) will placeblame on opposition parties or secret agencies to take politicalmileage out of this,” they added. 951210 ------------------------------------------------------------------- Altaf’s brother, nephew found dead ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 9: Nasir Hussain, brother of MQM chief Altaf Hussain,and his young son Arif Hussain were found dead in Gadap on Saturdaymorning. Their blind-folded bodies with hands tied and bearing torture marksand bullet wounds were later identified by the women relatives. The victims’ family had reported on Thursday that the two men had beenpicked up by rangers and police during raids on their house in FederalB Area. Arif Hussain was arrested on early Tuesday morning, while hisfather Nasir Hussain was picked up on the next day in a similar raidon their Samanabad house. Nasir Hussain and Arif Hussain were both subjected to severe torture.Doctors, who performed the autopsy on the two, told Dawn that torturemarks were distinctly visible on their entire bodies. In an immediate reaction, the MQM announced a three-day mourning forthe murder of the two. SHO Gadap, who saw the bodies in the morning, told Dawn that each ofthem received four bullets in the head and chest. “There were cutmarks on the bodies. The father was hit in the temple and head. Thebody of his son also bore torture and bullet marks,” said a witness. Body of Arif Hussain was carrying cut marks. The injuries werevisible on the entire body. His skull was also slashed with a sharpweapon,” said another witness. The rangers and police on Friday and Saturday twice denied having madeany arrests. Former provincial minister M. A. Jalil told Dawn by telephone fromLondon. Bhai Sahib (Altaf Hussain) has personally seen their picturesand identified them as his elder brother and nephew. Situation here isvery tense. We were fearing their murder as the rangers and policewere denying the arrests,” Describing the murders as the worst example of political revenge, itsaid that soon after their arrests, the MQM urged the President, theChief of the Army Staff, the Chief Justice of the Supreme Court, theChief Justice of the Sindh High Court for intervention “but nobodytook notice of it”. 951210 ------------------------------------------------------------------- MQM announces three-days mourning ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 9: The MQM Coordination Committee at an emergencymeeting on Saturday night announced to observe a three-day mourningover the death of MQM chief’s brother and nephew. In a late night communication to newspapers, the committee said it hadalready informed the president, the prime minister and chief justicesof the Supreme Court and the Sindh High Court through telegrams aboutthe possible threat to their lives following their “arrest”. Meanwhile, MQM chief Altaf Hussain said that after the cold-bloodedmurder of his elder brother and nephew he had joined the caravan ofthose whose dear ones had been killed mercilessly. In a brief statement faxed from London to Dawn, he said: “My brotherand nephew were apolitical and innocent. Both were murdered for theirkinship with me.” He asked his followers to demonstrate patience on the tragedy andintensify their struggle for people’s rights. He appealed topoliticians, intellectuals, writers and journalists to pinpointinjustice, cruelty and discrimination. According to the Coordination Committee, the future line of actionwould be decided on Tuesday. 951211 ------------------------------------------------------------------- MQM calls off Tuesday’s strike ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 10: The MQM co-ordination committee announced that itwas withdrawing its call for observing a mourning day on Tuesday, theday set for the burial of Nasir Hussain and Arif Hussain, to enable,the people in large number to attend their Namaz-e-Janaza in Azizabad. In a statement, the committee said a decision was taken to bury themon Tuesday instead of Sunday to facilitate their relatives, living outside Karachi, to attend their burial. 951211 ------------------------------------------------------------------- MQM’s statement on murders ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 10: The MQM information cell on Sunday released astatement on the arrest and murder of Nasir Hussain, and Arif Hussain,who were found dead in a vehicle in Gadap area on Saturday. According to the statement, MQM Senators Ishtiaq Azhar and NasreenJalil had contacted Sindh Governor Kamaluddin Azfar on Saturday andtold him about the arrest of MQM chief Altaf Hussain’s brother andnephew, but Mr Azfar denied that they were in rangers or policecustody. The statement further said: “But they were found dead the same day. Their relatives identifiedthem at the morgue of Edhi Centre, Sohrab Goth. Even then blood wasseen dripping down Nasir’s slashed skull. His chest was pumped withbullets fired from a point blank range. “MQM Coordination Committee Convenor Senator Ishtiaq Azhar and MQMDeputy Parliamentary Leader in Sindh Assembly Shoaib Bukhari hadseparately sent telegrams to the president, chief justices of theSupreme Court and Sindh High Court and appealed them to intervene andsave lives of Nasir and Arif but to no avail. “Arif was allegedly picked up from F B. Area on Tuesday, while hisfather was arrested on Wednesday at the same place by the rangers andpolice. “On Thursday some of their neighbours visited Nine-Zero and informedabout arrest of Nasir and Arif. The same night the MQM demanded theirimmediate release. “On Friday night the rangers issued a denial about their arrest. OnSaturday their bodies were found in Gadap.” 951211 ------------------------------------------------------------------- Altaf wants registration of murder case ------------------------------------------------------------------- Staff Correspondent LONDON, Dec. 10: MQM leader Altaf Hussain, who is mourning the deathof his elder brother and nephew, has said he is leaving the matter inthe hands of God and is praying that he in his divine wisdom willpunish those responsible for the crime in a manner that will be alesson for future rulers in preventing them from imposing their willon others by force. He also appealed to the chief justices of the Supreme Court and theSindh High Court to register a case of murder against the perpetratorsof the crime and order their public trial. He claimed that the murders were part of a conspiracy and he held the government - from the president down to the governor and chiefminister as being responsible. Mr Hussain said, the deceased, had no political connections and “likemany of the party workers killed were innocent”. He alleged that ArifHussain, his nephew, was “picked up by law enforcement agencies on thenight of 4-5 December” while Nasir Hussain was “taken away the nextday”. As soon as the MQM coordination committee and Mr Hussain came toknow about it messages were sent to the president and the courts fortheir recovery. But the rangers denied any knowledge for the arrestswhich, turned his “fears into belief that they were to be disposed ofin false encounters”. Mr Hussain claimed that the killers of Nasir Hussain and Arif Hussainwere “known figures”. Their murders were “planned at a high-level” andthe whole operation was “fully monitored”. 951211 ------------------------------------------------------------------- PM condemns killing of Altaf’s relatives ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 10: Prime Minister Benazir Bhutto condemned thekilling of a brother and a nephew of MQM chief Altaf Hussain andordered a judicial inquiry. Ms Bhutto vehemently denied the allegation that Nasir Hussain and ArifHussain had been kidnapped and killed by the law enforcement agencies,and said the killing might have been the “outcome of gang war or anact of some foreign agents.” Linking the murders with theassassination of a brother of Sindh Chief Minister Abdullah Shah, shesaid this could be a conspiracy to “inflame” the two major ethniccommunities of the province. “The brother of Abdullah Shah like the brother and nephew of AltafHussain were non-political persons and we are equally grieved on theirassassination,” she added. The prime minister said during the past few weeks the law and ordersituation in Karachi had been improving as a number of notorious gangshad been busted. With the noose tightening, she said the remaininggangs had adopted the strategy of selective killings which could makenews at the international level. Defending the government’s crackdown on Altaf group, she said nodemocratic government in the world could tolerate terrorism on itssoil. “Altaf group is not following the political path but the path ofbullets, killings and terrorism.” The prime minister alleged that the Altaf group had killed its ownmembers who had agreed to cooperate with the government and givenstatements against Altaf Hussain. 951211 ------------------------------------------------------------------- Nawaz condoles deaths ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 10: PML chief Mohammad Nawaz Sharif condemned the cold- blooded murder of a brother and a nephew of MQM chief Altaf Hussain. He said removing relatives of political opponents physically andmaking target of revenge to their kin were unprecedented in history ofthe country. “Benazir Bhutto’s govt paints Altaf Hussain as a terrorist but I wantto ask her whether Altaf Hussain has committed terrorism against hisown brother and nephew or there are some other hidden hands involved,”he said. The opposition leader said the government could not absolve itself ofthe murder of Nasir Hussain and Arif Hussain. 951211 ------------------------------------------------------------------- Shah grieved at murders ------------------------------------------------------------------- KARACHI, Dec. 10: Sindh Chief Minister Syed Abdullah Shah hasexpressed his deepest sense of sorrow and grief at the sad demise ofNasir Hussain and Arif Hussain. In a condolence message to the bereaved family, he said every innocentcitizen who is victim of terrorism is my brother and to apprehend theculprit is the duty of my government. Insha’Allah, the chief minister said: “We will be able to apprehendthe culprits responsible for the tragic incident and give exemplarypunishment to them.” 951211 ------------------------------------------------------------------- Babar blames vested interests ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 10: Interior Minister Naseerullah Babar assured thehouse on Sunday that the “conspiracy” behind the assassination of abrother and a nephew of MQM chief Altaf Hussain would be unearthed,but blamed the killings on “certain vested interests”. These quarters, according to him, were trying to block the return ofpeace to the embattled city of Karachi. He also claimed that theassassinations had been “clearly engineered” to create a fresh wave ofviolence. He pointed out that the families of the deceased had not had anycontact with the authorities since the alleged day of their kidnappingand also that he saw no “plausible cause” for delaying the burialrites of the two men “unless it was meant to be used for politicalgains”. He said that a senior police officer had repeatedly visited the houseof the deceased had found the house locked and nobody seemed to knowabout the whereabouts of the family. The retired general went on to say that he was hopeful about MQMleader Shoaib Bukhari providing them information about the whereaboutsand safety of the family of the deceased. Providing a detailed account of the government’s action during thisincident, he said that immediately upon the publication of the news ofthe two men’s “arrest” by the rangers, the matter was investigated andthe same day the rangers issued a categorical denial of any sucharrests having been made. The matter, he said, was again taken up the following day in the highlevel meeting of various agencies and once again it was confirmed that“none of the many agencies operating in Karachi had arrested any ofthe men”. He claimed that the government had also immediately contacted MQMsenators Nasreen Jalil and Ishtiaq Azhar to convey its concern and toseek their cooperation for the progress of investigations. He said thekilling of the brother of the chief minister and now that of the step- brother and nephew of Altaf Hussain was clear proof that certainquarters wanted a hardening of stances and working up of passions tothwart the gradual return of peace to the city. 951211 ------------------------------------------------------------------- Leaders condemn murders ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 10: Various political, social and labour organisationshave condemned the murder of Nasir Hussain and his son Arif Hussain,the brother and nephew of MQM chief Altaf Hussain. In their separate statements, they also demanded an inquiry into theincident. The murder of the two, they said, was an outcome of thedeterioration in the law and order situation in the city. If the government failed to check such incidents, the organisationssaid, the consequences would be disastrous. 951211 ------------------------------------------------------------------- Murders setback to efforts for peace: Azfar ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 10: Sindh Governor Kamal Azfar on Sunday expressed shockat the murder of MQM chief Altaf Hussain’s brother and nephew and saidthe incident had caused a serious setback to the government’s one- point agenda of restoring peace to the city. He said the government would do everything possible to track down theculprits. He said the matter was being investigated. Mr Azfar alsowent on to add that no FIR was lodged about their “disappearance” andurged witnesses to come forward and help the government inapprehending the culprits. The government, he said, had alreadyinstituted a judicial enquiry into the killings. 951212 ------------------------------------------------------------------- Police receive Altaf’s complaint ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 11: MQM chief Altaf Hussain held the President, thePrime Minister, the Sindh Chief Minister and three others responsiblefor the arrests and murder of his elder brother and nephew whosebodies, with marks of torture, were found on Saturday. On Monday, Mr Hussain sent the copy of the written complaint to partyoffices in Karachi with instructions that this should be submitted tothe police as a First Information Report on the incident. In the afternoon, the Gulberg police station refused to receive thecomplaint from Senator Ishtiaq Azhar. Mr. Azhar, accompanied by a senior lawyer and some local and foreignjournalists, had visited the police station to submit the complaint,but the duty officer refused to accept it on the plea that he had totake permission from his senior officials. However, in the evening, the police officially received the complaintfrom MQM chief Altaf Hussain who accused the President, the PrimeMinister, the Sindh Chief Minister, the Interior Minister, the rangerschief of district Central and the SHO of Gulberg Police Station, ofbeing responsible for the murder of his brother and nephew. 951212 ------------------------------------------------------------------- Law enforcers alerted for funeral ------------------------------------------------------------------- KARACHI, Dec. 11: A Sindh government spokesman said that all lawenforcement agencies, including police, rangers and district anddivisional administration officials, had been issued specialinstructions to use all resources on the occasion of funeral rites ofNasir Hussain and Arif Hussain to guard against any possibleprovocation. They have been instructed to immediately take timely action in case ofany act of terrorism from any quarter during their funeral and burialrites. The meeting was apprised of various reports in which the agencies hadsaid that some terrorists had planned to play havoc during the funeralprocession so as to disrupt the law and order situation in the city. They have been directed to immediately arrest the elements who mayindulge in any sort of acts of terrorism because the government wouldnot let anyone play with the lives of innocent people. The spokesman said the administration had also been advised to contactrelatives of the deceased and organisers of funeral in connection withthe determination of the route of the funeral, and the funeralprocession should be allowed to go through a pre-determined routeonly. He said they had been asked to convey to the organisers the specialwarning that they would be held responsible for any damage which mightbe caused either to a common man or a member of the law enforcementagencies or public or private properties lying in the way of thefuneral procession. 951212 ------------------------------------------------------------------- People being ‘barred’ from attending funeral ------------------------------------------------------------------- SHAHDADKOT, Dec. 11: A fully loaded passenger bus bound for Karachi toattend the funeral of the brother and nephew of Mr Altaf Hussain, wasstopped by the local district administration and all the passengerswere forced to return back to their homes. According to a PPI correspondent the restriction in the movement ofpassengers by road is learnt to have been imposed by the districtadministration on the instructions of high officials, which willremain in force for two days with effect from Monday. When contacted the local MQM leaders took “exception to suchrestrictions now being imposed by the district administration torestrain MQM supporters from attending the Namaz-e-Janaza. “This has now fully exposed the undemocratic attitude of the attitudeof the present government and their approach to the problems of theMQM”, they said. 951213 ------------------------------------------------------------------- Thousands attend funeral ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 12: Thousands of mourners buried the elder brother andthe nephew of MQM chief Altaf Hussain on Tuesday afternoon in theAzizabad graveyard. The funeral prayers of Nasir Hussain and his son Arif Hussain, wereheld at Jinnah Park in Azizabad amid tense atmosphere. Leaders ofPakistan Muslim League, Awami National Party, Jamat-i-Islami and someother political and religious parties also attended the funeral. Hundreds of MQM women supporters also gathered at the Jinnah ground towitness the funeral procession. Soon after the funeral prayers, the MQM supporters started raisingslogans against Prime Minister Benazir Bhutto holding her responsiblefor the murder of the two. Some angry supporters also threw stones atpolicemen standing atop roofs of nearby buildings, but the MQMvolunteers controlled the situation by pacifying them. Earlier, the troubled locality of District Central, was virtuallyunder siege as rangers and police sealed its entry points and turnedaway minibuses and buses. 951214 ------------------------------------------------------------------- Altaf appeals to leaders ------------------------------------------------------------------- Staff Correspondent LONDON, Dec. 13: In an open letter addressed to the leaders of thePakistan’s religious and political parties and others, the MohajirQaumi Movement leader, Altaf Hussain, has urged them to raise theirvoices against tyranny and the wrongdoings of the government. He hasappealed to their conscience and has asked them to come forward toassist the Mohajirs. Mr Hussain claimed that he has evidence about the killings of hiselder brother and nephew but is reluctant to make it public because ofthe dangers to which witnesses will be exposed. But he is willing topresent this evidence before a commission consisting of judges ofinternational repute. The President, said Mr Hussain, instead of acting to restrain thegovernment from behaving in an unconstitutional and illegal manner isbeing partisan. Besides the arrest of hundreds of MQM workers andsupporters on false charges and the detention of Senators and MPAsfrom the MQM many of the party workers and their family members havebeen killed and there is nobody who is willing to heal their wounds.The operation which began in June 1992 continues, said Mr Hussainregretting that none of the religious and political parties in thecountry have made any effective protest. “This has encouraged theforces of exploitation who shamelessly, without any check, arecarrying on their campaign against the Mohajirs.” The government, Mr Altaf says in his letter, has been trying to createa wedge between the Sindhis and Mohajirs in order to perpetuate thePeople’s Party’s rule. This, according to him, is evident from theinjuries inflicted on his elder brother and nephew which showed theuse of an axe, an implement commonly carried by the Sindhis. 951208 ------------------------------------------------------------------- PML urges govt to defer PTC privatisation ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 7: The Pakistan Muslim League has demanded of thegovernment to defer the privatisation of Pakistan TelecommunicationCorporation (PTC) and other major public sectors till the conditionsof the stock market in the country improved. “The government is desperately selling these prestigious public sectorenterprises on throwaway prices to tide over the worst financialcrisis of the country’s history,” Senator Sartaj Aziz, Secretary- General of the PML, alleged. He was of the view that at the present price the proposedprivatisation of the PTC would hardly receive 1.2 billion dollarswhich will be equal to 14 months of its earning. “We should not losebillions of dollars, simply because the government is short of cashand is, therefore, in a desperate hurry to sell national assets atwhatever price it can get,” the former finance minister said. He also doubted whether the privatisation proceeds were being used fordebt retirement as was originally conceived and given to understand tothe international donor agencies. Mr Aziz alleged that the government was misusing the privatisationfunds for meeting out its current expenditures. He also called fordeferring the privatisation of the UBL, since the procedure beingadopted was not very transparent. “In the case of industrial assets,the Privatisation Commission can sell them to the highest bidder,because, having received the value of its assets, no further risk isinvolved. But in the case of banks, the reliability and financialstanding of the purchase is more important because other peoples’money is at stake and the bank has to protect the interest of itsdepositors.” Another shortcoming in the privatisation of the UBL arose, he said,from the fact that the process was being pushed with top speed,without undertaking any valuation of the banks assets and liabilities.“Valuation is the first important step in the process ofprivatisation, in order to obtain a bench-mark price below which theenterprise should not be sold.” Replying to a question, he refuted V.A.Jafarey’s assertion that theprivatisation proceeds were being used for debt retirement on fundinghigh priority development projects. He alleged that about Rs 17billion of the privatisation funds were used by the government toreduce its budget deficit. To a question, he accused the government of signing a new agreementfor 900 million dollars under standby loan on 6 per cent mark-up. Hesaid had the government accepted IMF conditionalities in the budget itcould have got funds on 0.5 per cent interest. Mr Aziz said due to wrong economic policies of the government half ofthe industrial units had been closed down. He observed that theinflation which was officially claimed to be 13 per cent wasunofficially admitted to be at 20 per cent. The government, heremarked had failed to deliver anything on any account and was blamingthe opposition and the media for every kind of mess. Mr Aziz did not believe that the devaluation of the rupee could helpincrease Pakistan’s exports. 951209 ------------------------------------------------------------------- Nawaz opposes COAS term extension ------------------------------------------------------------------- Bureau Report LAHORE, Dec. 8: Leader of the Opposition Nawaz Sharif on Friday onceagain turned down Prime Minister Benazir Bhutto’s offer of holdingnegotiations for repealing the Eighth Amendment and restoring women’sseats in parliament. Mr Sharif said the prime minister had left no room for negotiations.She did not care about negotiations when these were most needed. When asked to comment on reports that Mr Moeen Qureshi had proposedextension in service of the chief of the army staff, Mr Sharif said ifthe reports were true, Mr Qureshi should not have done so as he was nomore the caretaker prime minister. Mr Sharif said the army was an important institution of the countrywhich must be kept away from politics. By not giving an extension inservice to the COAS, a good tradition should be maintained. Thegovernment must not make a decision which could create despondency inthe army. He said if the government wanted to utilise potentials of the presentCOAS, it could assign him a duty after his retirement. The presidentmust also play his constitutional role in this connection impartially,rising above the party affiliations. 951210 ------------------------------------------------------------------- PML chief criticises govt on human rights ------------------------------------------------------------------- ISLAMABAD, Dec. 9: Leader of the opposition and president of PakistanMuslim League, Mohammad Nawaz Sharif, has said the PPP regime hasundermined democracy through its wilful and systematic violations ofhuman rights particularly rights of the ordinary citizens,parliamentarians and women during the last two years of power. He deplored the situation in human rights in Pakistan under the PPPregime where institutions like parliament and the judiciary “wereunable to play their due role on account of the PPP regime being bentupon pursuing its agenda of vendetta, vengeance and victimisation”. Mian Nawaz Sharif said it was all the more unfortunate that graveviolations of rights of women were taking place in Pakistan when awoman prime minister was in the office, and in this connection citedcases of police violence against PML woman MNA, Begum Tehmina Daultanawho was injured during the action. He lauded the recent report of the Amnesty International which focusedon the violations of human rights of women in Pakistan. 951213 ------------------------------------------------------------------- PML rejects govt offer for negotiations ------------------------------------------------------------------- Bureau Report LAHORE, Dec. 12: Prime Minister Benazir Bhutto’s letter to oppositionleader Mian Nawaz Sharif came under discussion at a one-to-one meetingbetween Mr Sharif and the Punjab PML President Chaudhry Shujaat Husainhere on Tuesday. Party sources said the two were of the opinion that the prime ministerwas “not sincere in her offer of talks with the opposition, and thatshe talked of negotiations only to divert people’s attention fromserious issues,” they alleged. They also said that before offering to hold talks, the prime ministershould make the atmosphere conducive. When the opposition leaders werebeing victimised, and women opposition members convicted without anysolid reason, the opposition could not be expected to agree to holdtalks, the sources quoted Mian Nawaz Sharif as saying. 951208 ------------------------------------------------------------------- PM renews talk offer to MQM ------------------------------------------------------------------- Salim Shahid MASTUNG, Dec. 7: Prime Minister Benazir Bhutto extending conditionaloffer to the MQM for talks to restore peace in Karachi, has once againmade it clear that her government would not negotiate with theterrorists nor any agreement would be made with them. The prime minister said if the elected representatives of the MQM wereable to play an effective role for the restoration of peace, hergovernment was ready to hold talks with them. “But we are not preparedto be blackmailed by anybody,” she asserted. “Those involved inkillings of innocent people and those involved in terrorist activitieswill not be freed under any circumstance,” she reiterated. She said if the MQM chief Altaf Hussain set himself right and gavelove to the people of Karachi, he would be our friend. But if hecontinued his enmity with the people of Karachi, he would be our enemyas well. She condemned the frequent strikes and said these were affecting poorworkers and common people. Severely criticising the Opposition, shesaid it has obstructed the efforts of the government for the progressand prosperity of people and referred to the steps of her governmentfor the development of the country. 951210 ------------------------------------------------------------------- PM blames foreign agents for terrorism ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 9: Prime Minister Benazir Bhutto blamed agents offoreign forces for the killings and damage to the economy,particularly in Karachi.In a reference to the strike call given by the MQM, she said: “Thosewho give strike calls every now and then are not friends and well- wishers of the people and the country” because this impeded employmentopportunities and the overall socio-economic progress. The premier said the opposition was exploiting the Karachi situationfor its own interests as they did a year earlier, and asked it todesist from “this negative course for political gains”. Prime Minister Bhutto renewed the offer of resuming dialogue with theMQM, and said the Sindh government had given some positive suggestionsin this regard. “We are ready for political dialogue but we are notready to release terrorists and those who are involved in murders.” Terming the MQM allegations of the arrest of Altaf Hussain’s brotherbaseless, she said that no one had been arrested and this was just apretext for strike. She offered every assistance to look into thematter for the sake of peace. 951210 ------------------------------------------------------------------- Law and order has improved, says Benazir ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 9: Presiding over a high-level meeting on law and orderhere on Saturday, Prime Minister Benazir Bhutto has expressedsatisfaction on the city situation and said there was no basis for astrike in view of the on going political process, an official said. Premier Bhutto expressed satisfaction over the improvement in law andorder situation in the recent weeks in the city and appreciated therole of the law enforcement agencies in this regard. She was informed that there were no casualties in the terrorist- related activities and other crimes in the city in the last two daysas major terrorist groups had been busted a relative peace hasprevailed in the city. The official referred to recent convictions and pointed out that thelaw enforcement agencies were tracking down some terrorist groups,still operating in the city. The official also stated that the brotherof the MQM chief Altaf Hussain was not in the custody of Sindh policenor had he been arrested by the government. The MQM has given a strikecall for Sunday on their alleged arrest. 951211 ------------------------------------------------------------------- Benazir formally invites Nawaz for parleys ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 10: Prime Minister Benazir Bhutto has made a writtenoffer to the opposition leader Nawaz Sharif to sit with the governmentfor repealing the eighth constitutional amendment and restoring thereserved seats for women in the National Assembly, deputy law ministerRaza Rabbani said on Sunday. The letter, delivered by the law minister N. D. Khan and primeminister’s political secretary Ms Naheed Khan to the opposition MNAIftikhar Hussain Gilani, is the third one written by Benazir Bhutto toNawaz Sharif to settle political issues through negotiations. Nawaz Sharif has already refused to hold talks with the government,which he has vowed to oust through street agitation’s. 951212 ------------------------------------------------------------------- Mumtaz meets PM amidst speculations ------------------------------------------------------------------- Nasir Malick ISLAMABAD, Dec. 11: Former Sindh chief minister Mumtaz Ali Bhutto metPrime Minister Benazir Bhutto amidst reports that he was being tippedas the new chief minister of Sindh, highly placed sources said. The source said the government has decided to replace its nominee inSindh to create a congenial atmosphere in the province as suggested byformer caretaker prime minister Moeen Qureshi during his recentmeeting with Ms Bhutto. Furthermore, the replacement, he had told her, would create conduciveconditions for holding the stalled talks with the Mohajir QaumiMovement (MQM). 951214 ------------------------------------------------------------------- Govt’s conditional offer to opposition ------------------------------------------------------------------- Staff Correspondent KARACHI, Dec. 13: Sindh Law and Parliamentary Affairs Minister PirMazharul Haq asked the opposition here on Wednesday to attend theassembly session, and play their due role. “We are for extending every facility to bring their detainedcolleagues to the assembly provided they give assurance that they willattend the session regularly,” the law minister said. He said: “If they follow the procedure, the government has noobjection. It is the earnest desire of the government that theopposition should attend the session and effectively play its role inthe proceedings of the House. 951209 ------------------------------------------------------------------- MPA’s protest torture of MQM leader ------------------------------------------------------------------- Staff Correspondent HYDERABAD, Dec. 8: The Haq Parast members of Sindh Assembly haveprotested against the alleged torture of former MQM zonal organiserHyderabad, Anis Ahmad Qaimkhani, in Adiyala Prison and said that atthe instance of the government a reign of terror has been let looseagainst the MQM prisoners. The MPAs asked all the human rights organisations to raise their voiceagainst the alleged state-repression unleashed against MQM internedworkers. 951210 ------------------------------------------------------------------- Embassy blast probe in advanced stage: Kiyani ------------------------------------------------------------------- ISLAMABAD, Dec. 9: The head of the team investigating the suicidalbomb attack on Egyptian embassy, SP(Crimes) Haq Nawaz Kiyani, saidhere on Saturday that the probe into the incident was in “advancedstage”. He said the police had not arrested anyone suspected of involvement inthe blast, which left more than 15 people dead, but were onlyinterrogating some suspects. “There are about 35 suspects that we are interrogating but have notarrested anyone yet.” Mr Kiyani, however, did not say exactly how manyof the suspects were of foreign origin but remarked, “some of them areforeigners.” 951209 ------------------------------------------------------------------- Qureshi feels threatened by narco-terrorists ------------------------------------------------------------------- Shamim-ur-Rehman KARACHI, Dec. 8: There is a threat to the life of former interim primeminister Moeen Qureshi, especially from drug traffickers. Mr Qureshi disclosed this while explaining reasons for the securitymeasures adopted during his current visit. The former interim premiersaid threats were received when he was leaving the country after beingin office for three months. He said even outside Pakistan he had been advised to be extra-careful. Although he did not explain why the drug traffickers wereafter him, the impression gathered was owing to Pakistan’s policy ofextraditing some of them to the United States. 951211 ------------------------------------------------------------------- Nawaz’s threat to dislodge govt flayed ------------------------------------------------------------------- ISLAMABAD, Dec. 10: Federal education minister Syed Khursheed AhmadShah has severely criticised the opposition threat to launch anti- government movement to oust the people’s government through streetpower. He said the lust for power has driven Mian Nawaz Sharif towardsmadness. He said the obsession to grab power through street pressure andpolitics based on disinformation would prove fatal for him (NawazSharif). The opposition will lose credibility and respect due to theircontinuous politics of confrontation and disinformation and publishedstatements, through which Nawaz Sharif has depicted a gloomy pictureof over all socio-economic situation, blaming the PPP government forall that has gone wrong. It is actually meant to create doubts in theminds of innocent people. He advised opposition leader Mian Nawaz Sharif to leave politics basedon disinformation and confrontation, because these cheap tactics arenot a part of a civilised and democratic system and come forward inassemblies with positive attitude toward common points of manifesto ofboth PPP and PML (N) committed before people during the last electioncampaign. 951212 ------------------------------------------------------------------- Cabinet spurns FACC move on assets issue ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 11: The federal cabinet on Monday rejected orders ofthe Federal Anti-Corruption Committee (FACC) asking governmentofficers of Grade 17 and above to submit statements of their assets aswell as expenditures by Dec. 15. However, it allowed the FACC to seekannual statement of assets of those officers against whom an inquiryis being conducted. The FACC had asked the officers to submit statement of their assets aswell as expenditures like their electricity, gas and telephone billsand the details of the educational institutions where their childrenwere studying to ascertain how many officers were living beyond theirmeans. The annual practice of collecting the declaration of assets from thegovernment officials is never made public nor is subjected to anyscrutiny or processed to judge its authenticity. It also does notcontain information which was asked by the FACC to ascertain thestandard of living of the officers. 951213 ------------------------------------------------------------------- Situation ‘extremely disturbing’ : US ------------------------------------------------------------------- Shaheen Sehbai WASHINGTON, Dec. 12: The United States condemned what it called an“extremely disturbing turn” in Karachi violence and urged thegovernment of Prime Minister Benazir Bhutto and the MQM to resumetheir political talks. “We are deeply concerned by the escalating cycle of violence inKarachi and particularly by the sharp increase in reported extra- judicial killings, extortion and custodial deaths by security forces,”a statement released by state department spokesman, Nicholas Burns,said. The statement said: “Political violence in Pakistan’s largest city andmost important port has claimed 1,800 lives since the beginning ofthis year. In recent months the violence has taken an extremelydisturbing turn, with a sharp increase in reported extrajudicialkillings and the targeting of family members of government officialsand MQM political leaders. “We are deeply concerned by the escalating cycle of violence inKarachi and particularly by the sharp increase in reportedextrajudicial killings, extortion and custodial deaths by securityforces. “The United States deplores the senseless murder of family members ofgovernment and political leaders. We continue to believe that the bestway to end the current violence in Karachi is at the bargaining tableand urge the government of Pakistan and the MQM to resume talks.” 951213 ------------------------------------------------------------------- Govt sees statement as ‘interference’ ------------------------------------------------------------------- Bureau Report ISLAMABAD, Dec. 12: The government has criticised the United Statesfor its statement on the Karachi issue terming it an interference inthe internal affairs of Pakistan. Commenting on the substance of the statement, a Foreign Officespokesman said the violence perpetrated by terrorists in Karachi wasbeing brought under control by the strong measures taken by thegovernment. Saying these measures were within the parameters of law, the spokesmandenied the charge of extra-judicial murders. “There have been nocustodial deaths or extra-judicial killings,” he said. “Action hasbeen taken where there have been police excesses. The spokesman said the Press was free and judiciary independent. Hesaid the government had already deplored the murder of innocentrelatives of MQM chief Altaf Hussain as well as the killing of thebrother of Sindh chief minister. He said these killings were in fact asetback to the government’s efforts to restore normalcy in Karachi. “It appears this tragedy was the desperate act of extremist factionswho wanted to inflame passions, harden positions on both sides andgive rise to a new cycle of violence. The Foreign Office spokesman said the government would continue tofight against terrorism. “The government sincerely believes inresolving political issues and differences in a peaceful mannerthrough negotiations but it cannot compromise its stand on terrorism,”he said. 951213 ------------------------------------------------------------------- Moeen suggests mediation to break deadlock ------------------------------------------------------------------- Staff Correspondent WASHINGTON, Dec. 12: Former caretaker prime minister Moeen Qureshi hassuggested third-party mediation to break the deadlock between thegovernment and the MQM and to check the cycle of increasingly brutalviolence in Karachi. “I am not volunteering for that role but the suggestion has to comefrom the two parties themselves and if I could serve in any way, Iwould be glad,” Mr Qureshi told Dawn. The former prime minister, said the MQM and the government couldnegotiate in their talks whether it would be useful to have a thirdparty come in which has no axe to grind, is neutral and both rely onits integrity. This suggestion has to come from them, Mr Qureshi said, describing theKarachi situation as “very serious and one which could spread like acancer throughout the body politic of the country. “What is happening now is that on both sides there are allegations.Government alleges and I think with some justification that there isextensive terrorism being practised by MQM. MQM alleges that extensiverepression is being applied by the government. There is some truth onboth sides. If we continue on the present path we will not reach asolution. On the government side they are beginning to recognise that eventuallythis problem cannot be solved just by trying to enforce law and order.“I find that there is in Karachi an administrative breakdown. Thereare special forces that are trying to enforce law and order and theyare not always very careful as to how they handle these matters. 951214 ------------------------------------------------------------------- COAS urged to order probe into excesses allegations ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 13: The Chief of the Army Staff was urged to institutean internal enquiry into the allegations of rangers’ involvement in“extortion, custodial and extra-judicial killings”. The proposal was made by Nusrat Mirza, chief of the Mohajir RabitaCouncil. Mr Mirza said such an investigation was necessary in view ofmounting allegations of the rangers’ involvement in excesses againstpeople. This was also necessary to protect the credibility of anational institution, he said. Criticising the government’s stance that it was not prepared to acceptthe Pakistanis stranded in Bangladesh, Prof Ghafoor said it was aninsult to their patriotism and sacrifices given for the creation ofPakistan. He said the repatriation of the stranded Pakistanis in Bangladesh hadbeen acknowledged in the agreements the PPP and the PML signed withthe MQM. Meet Sabz and Zaitooni. They’ve been around for 180 million and would like to stay. Can they? It’s up to you Pakistan harbours 2 of the 7 species of turtles found in the worldtoday. For 180 million years, Sabz (Green Turtle) and Zaitooni (Olive RidleyTurtle) have come to Karachi’s beaches to lay their eggs. Sadly todaySabz and Zaitooni are in danger. Soon they may be extinct. Unless youhelp. Once the eggs are laid, Sabz and Zaitooni returns to the sea. The eggsalthough camouflaged in a nest hole are threatened by predators; Everyyear fewer and fewer eggs hatch. If this continues, none of Sabz andZaitooni’s eggs will hatch and they will disappear forever. Are you going to allow this to happen? Sabz and Zaitooni are a vital balancing link in our ecological system.They have brought colour and variety to our beaches. They are one ofthe most ancient vertebrate life forms in the world and play animportant role in our understanding of nature. Once Sabz and Zaitooni go they will never come back! To save Sabz and Zaitooni, more enclosures to protect their eggs haveto be built and maintained. But we cannot manage alone. We need your help to ensure that Sabz and Zaitooni stay. So it’s up to you. Please join us in saying ........ SABZ AND ZAITOONI, PLEASE STAY ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ SABZ AND ZAITOONI CONSERVATION PROJECT Facts on the Marine Turtles of Pakistan Two species of marine turtles nest on Karachi’s beaches at Hawkesbayand Sandspit; the Green Turtle (Sabz Kachwa) and Olive Ridley(Zaitooni Ridley Kachwa). The Green Turtle (Sabz Kachwa): * Latin name: Chelonia Mydas * Adult shell length: 90-110 cms * Adult weight: 280-300 Ibs * Food: Seaweed * Nesting areas: Tropical & subtropical beaches around the world * Interesting Fact: They are the only vegetarian species among marineturtles. It takes 12 to 15 years before they reach adulthood andreturn to nest. They have the highest commercial value for food amongall sea turtles. The Olive Ridley Turtle (Zaitooni Ridley Kachwa): * Latin Name: Lepidochelys Olivacea * Adult shell length: 70-75 cms * Adult weight: 100-150 Ibs * Food: molluscs * Nesting areas: Costa Rica, India, Mexico and Pakistan * Interesting Fact: The rarest and smallest among marine turtles. How do turtles make a nest and by their eggs? Coming ashore at night the female turtle digs a 3 feet deep hole withher powerful flippers. Once fixed in this depression she lays anaverage of 100 eggs. After laying the eggs she covers the hole withsand using both her front and rear flippers and then return to thesea. What happens after the eggs hatch? The eggs usually hatch after 40 to 60 days due to the heat from thesun and0 the chemical composition of the sand. Once they hatch theyare attached to the brightest spot over the sea. If there areartificial lights the hatchlings are easily disoriented. They may thenrun inland and suffer exhaustion, desiccation, death by predators oraccidents by vehicles on the road. Why do Turtles Cry? Turtles appear to shed tears when they come ashore to lay their eggs.In fact they are excreting excess salt from their bodies to maintaintheir physiological salt balance. Why are Turtles disappearing from our Shores ? All marine turtles species are in danger of extinction due to thefollowing reasons: - Commercial trade for turtle skins shells medicines and cosmetics. - Destruction of the eggs by predators and poachers - Accidental capture of turtles in fishing nets. - Extensive shore-line development human disturbances and pollution. Why Protect our Turtles ? Turtles are known as the last of the world’s living dinosaurs. Theyfirst appeared on earth between 150 and 200 million years ago duringthe Triassic period. Their ancestors were land dwelling reptiles. Nowif through negligence and greed we allow these magnificent animals tobecome extinct we will lose one of the most ancient vertebrate lifeforms in our world today. How can You Save our Turtles? You can help save our turtles by making a donation to the Sabz andZaitooni Turtle Conservation Project. Payments can be sent in the following form to the address given below: cheque orcredit card payment authorization (American Express or Visa) Address: The Sabz and Zaitooni Turtle Conservation Projectc/o Dawn Group of Newspapers Haroon House Dr.Ziauddin Ahmed Road Karachi-74200, Pakistan Sabz and Zaitooni need your help to stay on our lovely Karachibeaches.


BUSINESS & ECONOMY

=================================================================== 951214 ------------------------------------------------------------------- IMF grants $596m stand-by loan ------------------------------------------------------------------- Staff Correspondent WASHINGTON, Dec. 13: The IMF approved a 15-month $596 million stand-bycredit for Pakistan to support the government’s 1995-96 economicprogramme, an IMF announcement said. The loan, equivalent to 401.85 million SDRs, was approved afterPakistan promised to achieve a number of objectives includingrestoration of international reserves to the equivalent of 9.4 weeksof imports, to reduce inflation to nine per cent and accelerate realGDP growth to 5.5 per cent. According to the IMF announcement, Pakistan has devised a programme toachieve these objectives. It includes cutting down budget deficit inrelation to GDP through a combination of revenue and expendituremeasures. Giving the background, the IMF said “Since 1988 Pakistan has beenimplementing economic programmes designed to achieve a comprehensiveeconomic reform. After several years in which impressive gains weremade, the effort faltered due in part to unfavourable weatherconditions and political uncertainties. Pakistan, the announcement said, became a member of the IMF on July 7,1950. Its quota is SDR 758.20 million (about $1,123 million) and itsoutstanding use of IMF credit currently totals SDR 983 million (about$1,456 million). Experts said the background explanation given by the IMF was a harshdenunciation of the policies adopted by the Benazir Bhutto governmentand indicated that a tough road was ahead, if all the objectives wereto be seriously met by the government. 951210 ------------------------------------------------------------------- Forex reserves fall to Rs 28.861bn ------------------------------------------------------------------- Parvaiz Ishfaq Rana KARACHI, Dec. 9: Country’s foreign exchange reserves have fallen totwo-year low at Rs 28.861 billion, barely enough to foot the importbill for three weeks, but official sources are not worried over thedeveloping situation. “We have an outstanding export bill worth $1.8 billion and the recentstandby credit of $600 million extended by the International MonetaryFund (IMF) to balance the trade deficit,” sources at the ministry offinance said. “There is nothing to worry as forex reserves could fall or riseaccording to trade data,” State Bank sources said. According to official figures released by the State Bank for the weekended November 30, 1995, forex reserves have fallen by about Rs 4billion from Rs 32 billion to Rs 28.861 billion. “The rate of depletion in the forex is an alarming one and could takean ugly turn if timely corrective steps were not taken to arrest thedowndrift,” financial analysts said. Official sources said the forex reserves were stable around $2.72billion for the last about one year, although the state of economy wasnot in a good shape owing to the failure of major cash crops,including cotton, but 18 percent increase in exports in 1994 at $8.2billion kept the forex reserves well over $2 billion. The State Bank sources said the forex figure could fall further as thetrade deficit has hit the high mark of $1.4 billion during the fistthree months of the current year and exports did not pick up at theanticipated growth rate. Annual debt servicing might be one of the major cause, which joltedthe forex reserves, but the reported withdrawal by Kuwaiti governmentfrom its deposits to pay back the instalment of the war debt amountingto about $550 million was said to be the chief factor, they added. 951209 ------------------------------------------------------------------- Moeen sounds a warning bell on Karachi situation ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 8: Expressing grave concern over the prevailing law andorder situation in the country, former caretaker prime minister MoeenQureshi has warned that if the law and order situation in Karachi wasnot checked and economic discipline not effectively implemented, asituation may be reached when change through an in-house process, mid- term elections or through any other means may become inevitable. He was of the view that if the situation was allowed to furtherdeteriorate “some change may take place — whether an in-house orthrough mid-term elections or some other basis,” Mr Qureshi said. He offered a five-point solution to the present problems, includingholding of local bodies elections, ending confrontation betweenpolitical parties, introducing stringent financial discipline, taxingagricultural income and rooting out corruption and all kinds ofprejudices. He was of the view that the government had greater responsibility oftaking the initiative through “meaningful political dialogue with theMohajir Qaumi Movement as a first step toward improving law and ordersituation.” “Without that no economic policy of the government can besuccessful,” he emphasised. The government, he said, had greater responsibility but the oppositioncannot be absolved of its role and responsibility in improving thesituation. He believed that holding of local bodies elections could be one way ofinstilling a sense of participation. The next three years for thePakistani nation, he said, were crucial as it would be passing througha very critical phase where its metal would be tested. He expressed concern over economic and financial crisis reflected insoaring inflation, decline in balance of payments position, loss ofresources, increasing unemployment and continuing low levels of socialdevelopment. He urged major political parties to shun differences and build anational consensus on vital economic and foreign policy issues. He wasof the view that there was hardly any difference between thegovernment and the opposition on major issues but what was botheringthem was "who is in power." In the context of the country's economiccondition, Mr Qureshi said rising inflation had deterred smallinvestors and pushed the cost of living up by at least 20 per centwhich had serious implications. Pleading for strict financial discipline, he said the "government musttake strict economic measures to cut down inflation and expenditure." He said there was no need to burden the tax payer but there was a needto improve tax collection, ensure that utility bills were paid andthose not complying should be disqualified. He also supported taxingagricultural income. Emphasising the need to increase foreignexchange reserves, he said unless "we export we-will perish." To a question, he said the present economic problems were owing tomismanagement, increased government borrowing and budget deficit. Hewas of the view that owing to this indiscipline the country was stillindebted and dependent on foreign assistance. He believed that thecountry can pay back its debts if government expenses were scaled downand corruption was checked. 951208 ------------------------------------------------------------------- LHC declares banking tribunal law defective ------------------------------------------------------------------- LAHORE, Dec. 7: A full bench of the Lahore High Court has declared theOrdinance XI of 1984 pertaining to the constitution of bankingtribunals as defective, and directed the government of Pakistan toimmediately fill the lacuna in the legislation as has been done in thecase of ordinance LXVIII of 1984. The bench observed that although the federal government has power toconstitute more than one special court, yet there is no provision inthe existing enactment under which the cases can be transferred orentrusted from one court to another. The notification, issued under Section 3, does not take care of theterritorial jurisdiction of the two special courts with exactitude andthe choice to file the challan before any of the special courts hasbeen left to the prosecution. “Therefore, the said ordinance require amendment to that extent.Furthermore, there is no provision in the said enactment for framingthe rules. This lacuna in the legislation also requires to beimmediately filled in, as has been done in case of ordinance LXVIII of1984.” The bench, however, observed that it was clear from the language ofSection 3 that the federal government may constitute more than onespecial court for the whole or any part of Pakistan for the trial ofthe scheduled offences. 951208 ------------------------------------------------------------------- Stocks easy as volume soars to 29.9 million ------------------------------------------------------------------- Commerce Reporter KARACHI, Dec. 7: Stocks finished the weekend session on an easy noteas investors took profit at the higher levels amid a briskly tradedsession. Volume soared to over 29 million shares thanks to massiveactivity in Hub-Power and PTC vouchers. Selling though dominated the trading, but selective buying re-emergedstrong on a number of counters. The Karachi Stock Exchange index of 100-share suffered a fresh setbackof about 24 points at 1,401.07, but did not breach the psychologicalbarrier of 1,400 points. The overnight closing was around 1,425points. Minus signs again dominated the list, with Dadex, which has risensharply over the last couple of sessions, being in the lead falling byRs 15.50 after dealing in it were made on spot basis. ICI Pakistan followed it, which was also massively traded on heavyselling from some long parties and was marked down by Rs 2.50 onvolume of 0.873 million shares. Other prominent losers were led by Parke-Davis, Orient Board, CrescentSteel, Sui Southern, Dewan Salman and Shafiq Textiles, which sufferedfall ranging from Rs 2 to 10. Adamjee Insurance, Crescent Bank, Union Bank, Metropolitan Bank, andDadabhoy Insurance were among the other leading losers. The market was, however, not without some special features as a someof the blue chips managed to put on fresh good gains under the lead ofPakistan Hotels, Apex Fabrics, Engro Chemicals, Pakistan Gum, PSO andLever Brothers, which posted gains ranging from Rs 1.5 to 10. Muslim Insurance, Universal Insurance, Colony Woollen, and Packagesalso attracted good support and rose modestly. The most active list was topped by Hub-Power, unchanged on 7.670million shares followed by PTC vouchers, easy 45 paisa on 7.357million shares, Dewan Salman, off Rs 2 on 1.509 million shares, FaysalBank, lower 60 paisa on 936,000 shares, and Dhan Fibre, lower 35 paisaon 735,000 shares. Other actives were led by Pioneer Cement, down 10 paisa on 337,000shares, LTV Modaraba, easy also by 10 paisa on 179,500 shares, HondaAtlas, lower 30 paisa on 137,500 shares and Askari Bank, off Rs 1.30on 110,100 shares. Trading volume soared to 29.291 million shares from the previous 13million shares thanks to massive activity in Hub-Power and PTC. There were 330 actives, which came in for trading, out of which 214shares suffered fall, while only 60 rose, with 56 holding on to thelast levels. 951208 ------------------------------------------------------------------- Institutiona l funds to be released in 30 days ------------------------------------------------------------------- Shaukat Ali LAHORE, Dec. 7: Corporate Law Authority Chairman Shamim Ahmed Khan hassaid that the government wants market forces to play their role torecover stock markets from their prevailing plunge. Mr Khan said that the government handling of the stock markets’deteriorated situation was not repugnant to the principle of freemarket economy but what the government had been doing was to help thecapital market by ensuring release of institutional funds which werestuck up due to some reasons. He said these funds, belonging to National Investment Trust (NIT) andthe Investment Corporation of Pakistan (ICP), were stuck up with thePrivatisation Commission in the form of shares which they had in thepublic sector organisations which the PC had sold out now. He said 40 per cent of their dues had already been paid to theseinstitutions but the blocked 60 per cent — Rs 398.22 million of theNIT and Rs 190 million of the ICP — would be released within 30 days. Mr.Khan said that the government, had also agreed to two-wayconversion of the GDRs (Global Depository Receipts) into vouchers fortrading. The government had, however, not accepted the demand ofwithdrawing 10 per cent tax on bonus shares but, according to him,held out an assurance to the committee that this matter would be givena sympathetic consideration. Replying to questions, he said it was too early to blame anyone forthe current debacle of the capital markets but added that whathappened was not very uncommon in this sphere of economy. 951209 ------------------------------------------------------------------- Cash flow problem delay’s implementation of projects ------------------------------------------------------------------- Ihtasham Ul Haque THE cash flow problems of the government have caused delays infulfilling half of the 650 major development contracts. WithInternational Development Authority (IDA) of the World Bankthreatening to suspend disbursing its share of resources in caseIslamabad does not manage release as early as possible. "We note with concern that nearly half of the 650 IDA assisted on- going contracts are running behind schedule, primarily due to cashflow problems, inadequate management, and lack of intensive progressmonitoring and corrective actions by the Co-ordinators" writes ChiefResident Mission of the World Bank, Mr. Sadiq Ahmad The government has already stopped payments for purchasing new itemsfor the offices and issued a directive to only ensure payment ofsalaries of its employees. The Financial Advisories of the Ministrieshave been asked not to approve any new budget for anything other thanthe salaries and medical bills. Numerous contracts in Punjab have been delayed due to cash flowproblem that continues till today. Inordinate delays in payments tocontractors have not only stymied progress but in many cases haveforced contractors to abandon the sites. The World Bank has said that the Punjab government should immediatelyprovide Rs. 230 million of additional funding. Of this amount, Rs.1.50 million will be released to C&W and Rs. 80 million to the PunjabIrrigation Department. Punjab Finance Department will allow use of theprovincial "suspension accounts" by the project implementing agencies. Besides the flood restoration project the world bank is believed to befinalising reports on other major development projects being delayeddue to funding problem of the government. It is said that-all themajor lending agencies are asking the government to arrange matchingfunds, as agreed earlier, to undertake old and new projects. 951212 ------------------------------------------------------------------- Govt plans to print new currency, bank notes ------------------------------------------------------------------- Mohammad Malick ISLAMABAD, Dec. 11: The government plans to print new bank andcurrency notes to the tune of Rs82,252 million and Rs940 millionrespectively during the first half of 1996. The value of the currency notes in circulation presently in case ofbank notes is Rs226,556,956,277 while the worth of currency notes incirculation has been tabulated at Rs2,069,168,000. Foreign Exchangereserves by the end of November, meanwhile, were put at US$ 1132million, down from the October’s relatively higher figure of US$ 1286million. Citing efforts to stabilise the currency the House was informed thatthe focus of fiscal policy continued to be the reduction of overallfiscal deficit. The fiscal deficit is projected to be reduced to 4.6 per cent of GDPin 1995-96 while monetary expansion is expected to increase by 13 percent in the same period as against 16.6 per cent. The government also appeared confident that “this coupled with a pick- up in growth rate is likely to reduce the inflation rate to 9.5 percent in 1995-96”. 951212 ------------------------------------------------------------------- Devaluation fails to achieve export targets ------------------------------------------------------------------- Sabihuddin Ghausi KARACHI, Dec. 11: The government’s decision to devalue Pakistanicurrency by 7 per cent, on October 29, has apparently failed toachieve the objective of pushing up exports, as an unofficial reportmentioned only 1.2 per cent rise in export earnings, during Novemberover October exports. Information gathered from various sources revealed that the exportearnings in November amounts to $629 million, showing an insignificantrise, over $540 million exports during October. Total exports duringJuly to November 1995-96 amounts to $2.79 billion as against $2.96billion realised in July to November 1994-95 period, indicating a 5per cent shortfall. When compared to total export target of $9.2 billion set for thefiscal 1995-96, indicating a monthly average projection of $766million, the total export earnings during the last five months areover $1 billion, less than the proportionate target of $3.06 billion. Interestingly, the Prime Minister’s Advisor on Finance, Mr V.A.Jafarey in his numerous statements after devaluation, and the StateFinance Minister, Makhdoom Shahabuddin had pointed out that thedepreciation in Pakistani rupee had been done to push up the exports,curtail imports and improve upon the balance of payment position. While the impact of this move on imports and trade imbalance will beknown after a day or two, when the Federal Bureau of Statisticsreleases the figures officially. Meanwhile the traders doubt, whetherthe deficit of $1.4 billion sustained in July to October 1995 periodcould be substantially, bridged. “It all, however, depends on the improvement of law and ordersituation in Karachi”, the one condition that planners are lookingfor, without which they fear that all their projections would beknocked out. 951212 ------------------------------------------------------------------- SBP increases cash reserve requirement ------------------------------------------------------------------- Mohiuddin Aazim KARACHI, Dec. 11: The State Bank of Pakistan (SBP) imposed on allcommercial banks a special reserve requirement of 3.5 % of their timeand demand liabilities and also raised the discount rate by 0.5 %. An SBP announcement said the decisions aimed at reducing monetaryexpansion and subsequent inflation would take effect from next Monday.It said the special reserve requirement would not apply on the foreigncurrency accounts adding that the special cash deposits would carry anannual 9.2 % of rate of return. With the imposition of the specialreserve requirement of 3.5 % the total reserve requirement for thecommercial banks has risen to 32.5 %—8.5% in cash and 25 % in the formof government securities. Some senior bankers and money market analysts also attributed theimmunity accorded to the foreign currency accounts from the specialreserve requirement to the SBP efforts to attract foreign currencyaccounts and help build up the foreign exchange reserves that recentlytouched a two-year low of less than $1.0 bn. 951213 ------------------------------------------------------------------- New package to improve stock market ------------------------------------------------------------------- ISLAMABAD, Dec. 12: Expressing satisfaction over the approved packagefor stock exchanges, president, Islamabad Stock Exchange, Tariq IqbalKhan said this would ensure the required vehicles available for thestock market to improve. Of the total funds of Rs 25 bn, 10% (Rs 2.5 bn) could be invested bythem in the capital market and not more than 1% of the 10% could beinvested in one company, thus laying down stringent conditions which,he added, would provide safeguard to the interests of the fundholders. He presented details of the recommendations presented by the threepresidents of the stock exchanges during their meeting with the PrimeMinister, earlier this month. Mr. Tariq said the recommendations presented by them except two wereapproved by the Government market. The management of institutionscited in the new package, would be at liberty to invest the funds evenin the capital market. The fund of the institutions, he said, was so far been invested in thegovernment securities, while the stock exchanges recommended that someportion of the funds be allowed to be invested in the stock market,provided conditions suited. 951213 ------------------------------------------------------------------- Trade imbalance swells to $1.73bn during July-Nov. ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 12: Pakistan’s trade imbalance during July to November1995 period swelled to about 1.73 billion dollars mainly because of26.2 per cent rise in import bill in the last five months. It is over300 million dollars more than trade deficit of 1.4 billion dollarssuffered during July to October 1995 period. Official trade figures released revealed that imports during July toNovember 1995 amounted to 4.52 billion dollars as against 3.58 billiondollars in same period of 1994. Exports on the other hand showed adecline of 5.7 per cent and were worth 2.79 billion dollars in July toNovember 1995 period as against 2.96 billion dollars in same period of1994. During single month of November, imports showed a marginal decline of0.8 per cent and amounted to 952 million dollars as compared to 960million dollars in October 1995. Exports, however, went up by 15.4 percent to 629 million dollars in November from 545 million dollars inOctober but were less by 1.2 per cent less than export earnings worth637 million dollars in November last year. Notable increase in exports during single month of November was incase of cotton which went up by about 497 per cent to 28.49 milliondollars, rice by 65.5 per cent to 45.97 million dollars, cotton yarnby 19.66 per cent to 115.66 per cent, garments by 8.96 per cent to45.08 million dollars. However, 13 major items including fish,carpets, sports goods, tarpaulin and canvass goods, synthetic fabrics,fruits and vegetables showed decline in exports during November. 951213 ------------------------------------------------------------------- SBP allows direct repayment of debt through export bills ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 12: The SBP Foreign Exchange Department said it is notnecessary to repatriate the proceeds of export bills to Pakistan firstand then arrange remittance for repaying the debt. “The amounts of theexport bills realised abroad can straight-away be used in repayment ofthe amount of the relative debt and interest less taxes. “Previously it took 10-15 days to realise the export proceeds inPakistan and then use it to clear the export debt acquired outside thecountry.” “From now onwards the exporters would clear their foreigndebt acquired for the export purpose as soon as their export bills arerealised abroad... The saving of time that would become possible inthe process would naturally reduce the cost of borrowing.” Through another circular, the SBP allowed the banks to make paymentsagainst import bills without seeking the SBP prior approval in casewhere the import documents have been received directly by the importerand not through the banks. The circular said the banks had been permitted to exercise this powerprovided the requests for remittances are accompanied by all necessarydocuments including the customs bill of entry. 951213 ------------------------------------------------------------------- Banks advised not to penalise depositors ------------------------------------------------------------------- Staff Reporter KARACHI, Dec. 12: The State Bank of Pakistan (SBP) instructed thebanks to refrain from debiting the customers deposits accounts in casethey show a decline below a certain level. “Banks are advised that unless and until the depositor has agreed inwriting to the payment of such charges and the rate of charge has beendeclared in the Schedule of Charges required to be printed on half- yearly basis no such recoveries shall be made from such accounts,” thecircular said. A couple of executives of leading banks told Dawn that the instructionexclusively related to the foreign banks operating in Pakistan. A source close to the SBP said if the foreign banks were attractingdepositors by offering them saving account rates of return on currentaccounts...”it is their business...but the central bank cannot simplyallow them to debit the depositors account for any reason other thanthose permissible.” Some local bankers welcomed the SBP move. They said lately someleading banks particularly the foreign ones had indulged in increasingthe minimum balance limit for their account holders and hoped that theSBP instruction would check the trend. 951214 ------------------------------------------------------------------- Record rise in share value of BOC Pakistan ------------------------------------------------------------------- Commerce Reporter KARACHI, Dec. 13: A record rise of Rs 315.75 in the share value of BOCPakistan followed by news of a handsome cash and bonus shares of 100per cent featured the Wednesday’s stock market where all other leadingshares also rose under the lead of MNCs. The management of the company has announced a cash dividend of 80 percent, 40 per cent interim already paid and a record bonus share at therate of 200 per cent. Never before in the history of the Karachi Stock Exchange (KSE), anyother company has responded so bullishly to a record dividend as didthe BOC, partly because of the reported shortage of the floatingstock. Only 500 shares of the company were traded as there were notmany sellers at the inflated level. It was last quoted at Rs 600against the face value of Rs 10. Floor brokers said the notable feature was that some of the leadingforeign funds were also in the rings and made massive buying in PTCvouchers, Hub-Power and some other MNCs at the lower levels. The market recovery was led by bank shares, which recovered broadly onheavy buying at the lower levels, major gainers among them beingAskari Bank, Bankers Equity, Al-Faysal Bank and Prudential Bank. Butmutual funds and modarabas were traded fractionally and mostly on thelower side for want of support even at the lower levels. Insurance shares also rose under the lead of Adamjee, Century andMuslim Insurance and so did some others. But textile shares generallyfell barring Gadoon Textiles and some others. Synthetic shares were actively traded as leading dealers coveredpositions, with National Fibre, being the largest gainer. However,bulk of the activity remained centred around Dhan Fibre and DewanSalman, which were traded higher. Cement shares showed mixed trend amid alternate bouts of buying andselling but leading among them including D.G.Khan, Gharibwal and MapleLeaf Cement fell. Pakland rose modestly. Energy and auto shares followed their lead falling sharply under thelead PSO. But Hub-Power, Sui Southern and Sui Northern and some othersrose. Hub-Power was massively traded as some of the foreign fund madelarger buying. Honda Atlas also rose in autos. Most of the MNCs in the chemical and pharma sector showed good gainson active support, rising under the lead of Dawood Hercules, ICIPakistan, Pakistan Gum, Searle Pakistan, and Bawany Air. WellcomePakistan was the only exception, which fell sharply. Elsewhere, Quice Food, Lever Brothers, Treet Corporation and UnitedDistributors were among the other major gainers. Hub-Power topped the list of most actives, up Rs 1.40 on 8.439 millionshares followed by PTC vouchers, lower 45 paisa on 3.734 millionshares, Dewan Salman, up Rs 1.95 on 981,000 shares, ICI Pakistan, upRs 2.60 on 344,500 shares, LTV Modaraba, unchanged on 214,500 shares,Dhan Fibre, up 10 paisa on 209,500 shares and Faysal Bank, firm 25paisa on 432,000 shares. There were some other notable deals also. Trading volume fell from the previous peak level of 29 million sharesto 21.402 million shares owing to the absence of leading sellers. There were 317 actives, out of which 136 shares fell, 125 rose with 56holding on to the last levels. DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts*DAWNFacts* DAWN FACTS Another first from the DAWN Group of Newspapers --- the people whobrought you the first on-line newspaper from Pakistan --- comes DAWNFacts, a new and powerful Fax-on-Demand service, the first service ofits kind in Pakistan, giving you access to a range of information andservices. Covering all spheres of life, the service arms you with facts to guideyou through the maze of life, corporate and private, in Pakistan. Withinformation on the foreign exchange rates, stock market movements, theweather and a complete entertainment guide, DAWN Facts is your one- stop source of information. DAWN Facts is available 24 hours a day, 7 days a week! 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EDITORIALS & FEATURES

=================================================================== 951208 ------------------------------------------------------------------- The bare bones – 3 ------------------------------------------------------------------- Ardeshir Cowasjee NO ONE I have met is surprised at what is happening, at the slide downthe slippery slope. It was all on the cards, we expected nothing elseof this second Benazir government. Innocent of public finance as shehas demonstrated herself to be, she has chosen not to appoint a full- fledged full-time finance minister. It is no use hoping that ‘something’ will happen to save us, as domany who put their faith in a benevolent kismet. We must rely on logicand reason. ‘Something’ cannot appear out of the blue and save us atthis point in time in the life of the Islamic Republic. Let us go backover 400 years to the time of Akbar the Great, who guided thedestinies of millions. His finance minister (so to speak), Raja TodarMall, urged Akbar to indulge in trade to enrich his progeny. Feelinguneasy, he consulted his wise men, amongst them Dasturan DasturMeherji Rana, who reminded him of the old Zoroastrian saying,“Maharaj, jaino Raja wiapari, teynee praja bhikari.” (When a sovereignbecomes a merchant, his subjects are reduced to beggary). Four hundred years down the road, this saying holds true. When LeeKuan Yew visited this country he told us how, when he first becameprime minister of Singapore at the age of 35, he had two choices: tomake himself rich or to make his country rich. He unhesitatingly chosethe latter. Lee is an educated man in the profound sense of the wordand such an attitude is expected of him. He did not score points indebating societies; he scored in learning. At Cambridge he took adouble first in law, and in the final examination ranked first in thehonours list, winning a star for special distinction. He was fortunatein having a wife who was awarded a Queen’s Scholarship, who went toCambridge and was the first Malayan woman to be awarded first classhonours, after only two years of study. The welfare of the people of Singapore, of their country’s worth andwealth, ranks uppermost in the minds of the two Lees and has beenhanded down to Goh Chok Tong, an unassuming man, now prime minister ofperhaps the richest Asian republic. When he went to New York for theUN celebrations he stayed in a hotel suite costing $1,700 per night.Our Daughter of Destiny chose a hotel where a suite costs up to$15,000 per night and she took with her in her special plane ahundred-odd acolytes. Our money was squandered with gay abandon. Our present economic and political predicament is all our own fault.We are 130 million largely illiterate serfs living on an estate spreadover 796,000 square kilometre’s, lorded over by an oligarchy of feudalfamilies. Our sole purpose in life is merely to toil and sweat for theenrichment of the rulers and their cronies. “We can be dislodged onlyby the masses,” said Benazir in Ghazni Khel on the 6th of December. After I had written the first of the ‘Bare Bones’ series predictingthat perhaps by the next century Pakistan, as we know it, would ceaseto exist, our Chief Minister took it upon himself to ask his legaladvisers whether I could be tried for sedition. When Nazim Haji, wholives and works so close to misery and reality, wrote suggesting thatI was being optimistic and that my prediction could well come to passbefore the close of the century; our Governor asked his staff toarrange to replace Nazim, joint chief of the CPLC, a voluntary workerfor the people’s welfare. Now, another Pakistani, Shahid Javed Burkiof the World Bank, has suggested that “we are in danger of losingJinnah’s legacy” (Dawn, Dec. 6). Let us hope that the President doesnot suggest he be tried for treason. Burki made it abundantly clearthat he is very aware that the country is now left with no viableinstitutions, including that of the judiciary. Last week I heard Moeen Qureshi sermonising in Karachi, sounding likeBilly Graham and Martin Luther King rolled into one, before he flewoff to lunch with the President and the Prime Minister in Islamabad,and to meet the third of the ruling troika, Big Chief Waheed. Did theycomprehend what he was trying to convey? Understandably, he has aguilt complex, for was it not he who contrived the installation ofthis government? In the ‘70s, when Peter Cargill of the World Bank told General TikkaKhan (who was then lording it over a falling, seceding East Pakistan)that our country had a liquidity problem, Tikka, genuinely surprised,waved his arms, raised his eyebrows, and pointed to the waterssurrounding Dacca. When Tikka’s mind finally grasped the true meaning,he exclaimed, “No problem! All I have to do is to telephone Yahya Khanand tell him to have more notes printed.” In the ‘90s, our present day Tikka, General Babar of Khajiloo,proclaimed his conviction that we are rich since we have a printingpress that can print as much currency as is needed. Worse still, wehave a minister in charge of commerce, a shoemaker by profession, whothinks the same way and said so. There were those who expected thePrime Minister to rebut this ridiculous nonsense, but she endorsed it.An apprehensive man of finance was heard to say that he hopes we donot now hear the President inform us that we can even print dollars,as many as we wish. Institutions can only be as strong, as capable of administration andas judicious as are those that head them. Competent and honest menappointed on merit, who have no fear of the ‘high-ups’ takingadvantage of their weaknesses and calling the shots, obviously outdothose appointed on the basis of nepotism and favouritism. But now, noone is ever appointed on merit. A case in point: Young Asadullah Shaikh, an officer of the DMG, in1993 was Home Secretary in the Sindh government. He had never beforeworked in a bank or a DFI, and had no experience at all of handlingfinance, shares, investments, etc. In early 1994, he was elevated byBenazir’s second government to Grade 20 and appointed CEO of NIT. Hewas put into a chair normally occupied by a senior Grade 21 or 22officer. Asadullah was hand-picked for his servility and implicit obedience tothe powers that be. All in the equity market are well aware of how hehandles the people’s money held in trust, one of his most infamousdeeds being the KESC and SSG shares transaction in June this year,ending with the federal government announcing that it intended to soonpromulgate a law to make ‘insider trading’ a cognisable offence. Thisso far, it seems, has not happened. Asadullah was never expected to follow the ground rules, the rules ofbusiness, or the principles of sound finance. “To hear is to obey.”Recently, without advertising the sale or inviting bids, he privatelynegotiated the sale of 4,610 square yards of prime NIT property onBeaumont Road (next to Dawood Centre), giving vacant possession at thelow rate of Rs 12,000 per sq. yd. Another case in point: Pakistan Steel Mill in the days of engineer- General Sabih Qamar-uz-Zaman was well run. Naturally, the Generaltotally disregarded the recommendations of Baaji Naheed Khan, so histerm was not extended. The acting charge of the mill was given toSajjad Hussain, a man known neither for integrity nor ability. Hefailed to deliver to Islamabad the expected spoils, and two days agowas summarily displaced. Salman Farooqui’s brother, ‘Dr’ UsmanFarooqui, took over as acting chairman and managing director. In a well-researched article published in August 1992, Altaf Butt ofNewsline wrote on this man. “Usman Farooqui has worked in keypositions in state-owned public enterprises for more than a decade,with fake degrees. But since he happens to be the brother of apowerful secretary, Salman Farooqui, he continues to work on animportant post in Pakistan Steel with impunity.” Farooqui’s 1985 Annual Confidential Report rated him as “belowaverage” in leadership quality, intellectual integrity, and sense ofresponsibility in financial matters. Prior to his PS appointment, hisservices were relinquished by PACO, whose chairman noted on histransfer papers, “he must be watched closely as he gives preference topersonal benefit rather than the interest of the organisation. He doesnot hesitate to make incorrect statements for his own benefit.” Why has this man been appointed, and to deliver what to Islamabad? 951208 ------------------------------------------------------------------- Illegal aliens amongst us ------------------------------------------------------------------- M.B. Naqvi THE episode of over 150 alleged Bengali-speaking illegal immigrantsbeing shuttled between Dhaka and Karachi after their arrest in Karachiand being rearrested in Dhaka. This should bring Pakistan authoritiescloser to sober reality. The Bangladesh government refuses to take them and has warned Pakistanthat in future deportees from here will not be allowed to stay inBangladesh and shall be sent back by the same return flight. That putspaid to the current enthusiasm of Interior Minister Gen. NaseerullahBabar. Would Islamabad now think before acting? Our intelligence agencies had promoted the idea that many of Karachi’stroubles owe their origins to the existence of a large number ofillegal immigrants living among us, particularly in Karachi. Thefailures of security agencies in re-establishing peace and order inKarachi was being explained away in terms of such a large number ofillegal aliens. As concerns rose, many ministers and officials of the Sindh governmentbegan to see an easy alibi for their political failures. Opponents ofthe PPP see possible ugly designs in this hysteria over foreigners.Originally, most of the illegal aliens were supposed to be Bengaliscoming in large numbers. But lately a certain class of governmentservants is claiming that the pool of foreigners living in Karachiincludes a substantial number of Indians i.e. Indian Muslims. ManyKarachiite’s say this is a red herring, if ever there was one. Theypoint to the stringent measures that the Pakistan mission in Delhi andinterior ministry and home department here have taken to keep a tab onvisiting Indians in recent years: it is next to impossible for anyIndian visitor to disappear and remain undetected. However, manyissues are thereby raised. To begin with, people will ask how did the foreigners come in? If upto two million illegal immigrants have trekked into the country, itmust be because the security agencies have facilitated their arrival.They have also acquired Pakistani identity cards and many of them evenpassports. Any state which allows its documents to be given toforeigners for the asking has only to accept and own them up as itscitizens. It is not open to it to turn round and say that it was bymistake. It is likely that there was some illegal immigration, because of thesecurity agencies’ inefficiency and or corruption. Many of thesepersons may have been Bengalis. There may also be some Indians, thoughit is most unlikely because the Indians who come here are, rigorously,often offensively, watched. There are two wholly different categories of other illegal immigrants.One is the Afghans. Their presence in tens of thousands, possiblylakhs, is due not so much to their illegal actions as to Pakistangovernment’s open-door policy. All Afghans were, in fact, welcomedwith open arms and this welcome included free rations and so manyother facilities. The other category is actual refugees from Iran andArab countries who have bribed their way into Pakistan; they came inones and twos. While some of them commit crimes, the focus of theirattention are other refugees or citizens of their own country orregion — and not Pakistanis. The interior ministry and Sindh government stand committed todeporting these illegal aliens who are said to number up to twomillion. The fact of the matter is that there are no logisticalfacilities for doing so. If Pakistan had so much difficulty and up to$800 million had to be collected by foreigners in order to bring inscarcely three lacks Biharis from Bangladesh, how much more moneywould be needed to deport two million people? Moreover, where will they be deported to? That proposition presupposesother countries agreeing to receive them. Would they? One can bet thatno country would accept any number of its alleged nationals. The wholeidea of sending back Bengali-speaking residents of Pakistan has provedto be misconceived. If this is so in most cases and Gen. Babar insistson arresting them all, he is on a course to set up concentration campsfor up to two million people. Are we rich enough to do so and for howlong? Two points emerge: one, the mind that makes political capital out ofthe misery of a recognisable minority — poor and horribly maltreatedby the loquacious general’s corrupt underlings — is called xenophobic.In the experience of all people, their politics is extreme right-wingroguery. That debases democracy. If the state agencies have been inefficient and corrupt enough topermit the entry of up to two million aliens, well the country isstuck with them. They are here for keeps. But do let us think. Whatare all these people doing here? They are not like the economicrefugees that went from the subcontinent to England or other countriesof Europe for enjoying social security benefits and to get jobs. Herethe state has not given them anything whatsoever. It has not giventhem any job. No doubt, they are doing some jobs to sustainthemselves. But this is a helpless wave of humanity that, underpopulation pressure, tries to work out a living wherever possible. At any rate, they are doing jobs that others were not willing to dobecause by all accounts they are paid pitifully inadequately. Theirdisplacement would most likely leave an economic void. But none ofthem is a burden on the community or the state. Already the facts areheart-breaking, particularly regarding the hapless Bengalis. Many ofthem are bona fide and legal Pakistanis. Investigation shows that mostof them are those Bengalis from pre-independence days who had beenhere and who did not wish to go back, for whatever reasons. As ithappens, they are constantly being fleeced by our security forces:money is extorted heartlessly from them; they are harassed; theirwomen are frequently molested by law enforcement minions. Every time a press campaign is run about the ‘huge number’ of illegalBengalis, a large number of arrests are made, more money is extortedfrom them and they are eventually released. This has happened tens oftimes. It is sure to happen again. The modus operandi of the police inthis regard is well known. This is a social tragedy that even humanrights workers have not highlighted adequately. Supposing a given number of illegal immigrants, properly so- called,exists, what then? How do we treat them? even aliens have humanrights; some human rights cannot be taken away from people simplybecause they happened to be in the wrong country at any given time. Wecannot actually maltreat them in an uncivilised manner. We have alsoto obey our own laws. The procedures that are laid down for thepurpose need to be followed. Before any action is taken, some actions need to be taken againstthose who may have permitted them to enter the country. At any rate,natural justice demands that those who are already here in somefashion or settled and are doing a job, they should be accepted asPakistanis for practical and legal purposes, if they have lived herefor over five years without committing a cognisable offence. Theyshould be naturalised as Pakistanis and given adequate documents andprotection. This is probably the only way out of the situation. Onlythose may illegal immigrants may be sent back who are clearly recentarrivals or those who do not want to become Pakistanis or live here onthe terms on which others Pakistanis do. There remains the running sore of the so-called Biharis in Bangladesh,some two lacks-plus. All governments in Pakistan, including thepresent one, have recognised them as entitled to Pakistanicitizenship. Each government, at one time or another, promised tobring them back. Public-spirited foreigners have helped collect $800million for their return and rehabilitation in Pakistan. But eachgovernment has reneged on its promise on the morally and legallyshabby ground. But the net immigration into Karachi and Hyderabadevery year far exceeds the number of Biharis. No Sindhi can doanything about this immigration. This is one of the inescapable legacyof history that should not be dodged. Let Islamabad take due care to settle them in northern parts and helpthem make a living there. If they do trek to south, well, it cannot behelped. That price must be paid for history’s tragedies and mistakes.With what face can we tell the Bangladesh government to accept ourdeportees, if we are not willing to accept back those whose legaltitle to return is 100 per cent valid and who want to? The real problem lies with the approach so far adopted. At the back ofthe mind is the fear that the goodies are few and the more claimantsthere are, there will be less to go round. The true approach andendeavour should be to increase the quantum of goodies and thereadiness to be honest and fair in distributing them. If we are readynot to corner more than the fair share for one’s favoured group and ifwe are planning a co-operative effort, there is sure to be enough forall — within reason. 951209 ------------------------------------------------------------------- The way to peace in Karachi ------------------------------------------------------------------- Mahdi Masud THE recent financial crisis, reflected in the run on the dollar andthe slump in the Karachi Stock Exchange, stemmed basically from acrisis of confidence, in which the single most important contributoryfactor was the situation in Karachi. If the political stalemate andthe conflict on the ground continue in Karachi, expedients such aspalliatives for the stock exchanges or assurances regarding improvedeconomic performance are not going to bring any significantimprovement in the economic scenario. While the need for restoring peace and harmony to Sindh is essentialon its own account, there is the concomitant external factor arisingout of India’s designs. In a recent article in “Strategic Analysis”,the organ of the prestigious Institute of Strategic Studies andAnalyses, New Delhi, the Director of the Institute, Air CommodoreJasjit Singh, said: “If Pakistan with its fragile political institutions and culture isunable to manage its internal contradictions and domestic ethno- sectarian divisions (aggravated as they are by the Afghan imbroglio,colossal spread of small arms and the debilitating effects of dungtrafficking), its internal turmoil may present India withunprecedented challenges and difficult policy choices.” If memory serves one right, no internal crisis in Pakistan has lastedas long as the on-going conflict in Karachi. This includes theuprising in Balochistan during the early seventies, the MRD movementagainst General Zia, the PNA movement against Prime Minister Bhuttoand sporadic agitation by the PNA and others. The question of responsibility for the continuing violence, which haseffectively thrown the negotiating teams of the two sides out ofcourt, constitutes the vicious circle in which Karachi is trapped.Government maintains that it would continue its drive againstterrorism (leading to killings in alleged encounters, arrests andinterrogation of suspects and, occasional, siege and searchoperations). While denying its alleged role in terroristic attacks,the MQM leaves unsaid the presumed inference that killings by itsactivists would continue to provoke reprisals. This vicious circle hasto be broken. The crux of the situation is the inability of the MQM, after thebattering it has received during the past few years, with the bulk ofits cadres under detention or eliminated, to sustain an offensivecampaign against the government. This means that it is up to thegovernment to take the initiative in defusing the situation bysuspending its siege and search operations and its continued drive tonab all suspects on its lists. Only thus can the stalematednegotiations be resumed. If an organisation such as the MQM can be considered acceptable as anegotiating partner, it should be considered acceptable as a party toa ceasefire without which there is no hope for serious negotiations onKarachi. If in spite of a government initiative for a truce on theground, the MQM is unable to enforce discipline and restraint amongits activists, it would be held responsible for keeping Karachi inturmoil. The situation is complicated, however, by the apparent expectationthat the government would be able to physically crush the movementwithout requiring to make any concessions or peace overtures. Even ifthey succeed in crushing the activists, they would still be left witha large community disenfranchised and largely deprived of theopportunities due to it in the political and economic life of theprovince and the country. Would this ever serve the purpose ofnational cohesion unity and morale and of durable peace in Karachi,the economic hub of the country? In a less violent and more conciliatory atmosphere, the government-MQMnegotiations can focus on both the effects of the long-festeringconflict (including the question of an impartial tribunal fordetermining the fate of the large number of detainees) and on thebasic issues of a fair deal (economic, political, employment andeducational) for all sections of Sindh’s population. Meanwhile, the MQM must avoid any action, internally or externally,which could adversely affect the national cause, including Kashmir.The movement for the rights of the people of Karachi will be over assoon as a fair understanding with the ruling party is reached. But thestakes that the people of Karachi have in the security and prosperityof Pakistan are for ever. The Mohajirs stand to lose most if there isany serious setback to Pakistan. Increasing economic pressures underline the pressing necessity ofbolstering public confidence by associating with the governmentrepresentatives of major segments of the population, including theMohajirs. The need for building the city’s infrastructure alsoemphasises the desirability of the widest possible publicrepresentation at the level of local and provincial governments. It isby sharing the responsibility that the two major communities (Sindhisand Mohajirs) would develop greater confidence and trust and it is byworking in concert that the long list of mutual grievances would bebrought into focus and resolved. John Morley had said: “Tolerance is reverence for all possibilities ofthe truth.” Is it not amazing how people, including those with formaleducation, overlook completely the fact that none of us had anycontrol over the place of our birth, our race, creed or language? Thefact that each one of us could have been born in a totally differentmilieu does not seem to make any difference to feelings of ethnic orsectarian hostility, prejudice and intolerance which account for manyof the world’s man-made tragedies. Genuine tolerance involves an instinctive appreciation of the feelingsof others, an ability to put oneself in the other man’s situation.There can never be a better definition of justice than that given bythe Holy Prophet (PBUH). In reply to a question as to when wouldjustice be established on this earth, he said, “Not until he who seesinjustice done to another, feels it as much as if the injustice wasdone to him.” This must be the guiding motto of all of us if we wishto make our contribution towards making Pakistan the land of ourdreams and towards the building of a peaceful and just world order. 951211 ------------------------------------------------------------------- A nation forgetful of its advantages ------------------------------------------------------------------- Ayaz Amir A LINE that I recently read with regard to Nigeria fits Pakistan evenbetter: this is a nation made poor by its leaders. We have so manystrengths, our people so much resilient, fortitude and forbearing thatit is a pity that their destiny has always been entrusted in the handsof a succession of charlatans. Whatever their failings or sins ourpeople surely have deserved better than this. What did Pakistan not have in 1947? The rule of law, the trappings ifnothing more of democracy, a bureaucracy schooled in the tenets of theRaj, political parties, an educated elite, a free press and a peoplewaiting for a revolution to transform their lives. These advantageswere more considerable than those enjoyed by other Asian countries,the same countries whom in our emotional moments we seek to emulatetoday. True, these advantages which constituted the brightest aspects of ourcolonialist legacy (a legacy which the ranks of Pakistani punditryunthinkingly condemn when they can think of nothing else to explainour miserable plight) were accompanied by a great deal of backwardnessand poverty. But had the country’s destiny been entrusted in the handsof a caring and competent elite, there is no reason why these problemscould not have been tackled. After all, other people placed in farmore adverse circumstances than ours have tackled and fought fargraver challenges. But if ever a promising legacy was squandered it was by the Pakistanigoverning class which dissipated its energies, and forfeited its moralauthority, in fighting political battles which had nothing to do withthe welfare of the people. Defining Pakistani statehood, the laborioussearch for a constitution, provincial autonomy, the role of Islam inthe working of the new state: these were the epic questions whichconsumed the attention of Pakistan’s new masters. While important inthemselves, these scholastic issues could have been settled and doneaway with in a relatively short time by an elite with more vision andcompetence than ours possessed. Leaving aside these excursions into the distant past, the opportunitysquandered by the governing class since 1985, when the frontiers ofmilitary rule were pushed back, also makes for a painful examination.How high were the hopes of the people about what democracy would dofor them? According to the mantra chanted by the high priests ofdemocracy, all the country’s ills were rooted in authoritarianism.Once democracy was established in its place, these ills wouldgradually disappear. Democracy, of course, would be attended by itsown shortcomings but, as the conventional wisdom of the time went, theanswer to the problems of democracy lay in more democracy. In fits and starts and with periodic lapses, we have now had democracyfor the last ten years. With it have come four general elections and atrain of prime ministers, both elected and appointed. The press isfree to rave, the politicians free to rant while that large cadre ofdistinguished men and women who have an opinion on every subject underthe sun but can never hope to get elected even to a municipal councilis free to intrigue and draw the national scene in the darkestcolours. The sun of democracy is thus at its zenith but the country isunder the shadows of gloom and uncertainty. No elected prime minister has been able to govern in peace - notBenazir Bhutto, not Nawaz Sharif - partly because of the machinationsof their enemies but to a great extent also because of their ownfailings rooted in corruption and incompetence. External enemies canbe fought. Hitler’s armies could be defeated. But how does one facethe enemies lurking within one’s bosom? How does one fight corruptionwhen one’s own hands are tainted with the spoils? How can pygmiesraise themselves to the stature of giants? This is the Pakistanipredicament, an answer to which scarcely lies in a freshconstitutional dispensation or a reversion to a presidential form ofgovernment — a nostrum which that prince among charlatans, Dr MahbubulHaq, is trying to peddle these days. He can have a divinely-inspiredconstitution tomorrow but our own hopeless governing class will stillhave to work it. We can appropriate the Singaporean constitutiontomorrow but will a Lee Kuan Yew be a part of the package? The many people of distinction who like nothing better than to throwstones at the shenanigans of our democracy would, if only their heartscould be examined, dearly love to demolish it. Although our democracyis clearly not working because all it has done over the past ten yearsis to throw up a series of scoundrels, no tragedy would be greaterthan to accede the wishes of these malcontents who come dressed in thecolours of patriotism. This country has few real assets left, socomprehensive has been the squandering of its moral resources by itsgoverning class. Where would it be if even democracy and its attendantnoises were taken away from it? The two most suffocating periods in the nation’s history have been thereigns of those two military Bismarcks, Ayub Khan and Zia-ul-Haq.Another such period and the country will be unable to bear the strain.However much we may denounce the present state of affairs, do we notrealise that without democracy Pakistan will be little better thanthat long line of Arab and Muslim countries groaning under monarchistor republican dictatorships? Bad as our affairs may be they still donot compare with those of countries like Egypt and Algeria whichprecisely because of the absence of pluralism are being rocked byinternal strife. Our problem is different. We have the mechanism andthe means to resolve our internal problems and even to set out on thepaths of development. if we are failing in this it is not because wedo not have the right constitutional means at hand, as the brighter ofour pundits would have us believe, but because of the degeneracy andlack of vision of our ruling classes. Still, in the absence of an alternative there is no course open to thenation except to suffer the abuses and depredations of the presentpolitical class: no matter whether its manifestation is a Bhutto, aZardari, a Nawaz Sharif or someone else. Other countries have livedthrough bad times. Maybe our penance is proving longer but what is thealternative? Surely not another night of the generals. And surely not another MoeenQureshi interregnum. Apropos of which is it not pertinent to ask whythe man does not leave us to our misery? The greatest gift hedisplayed during his short stint as prime minister was for unabashedself-promotion. How will a further display of this quality lift theeternal depression of Pakistani politics? Nothing, therefore, could be worse for the country at this juncturethen to have Benazir Bhutto’s term cut short prematurely. The countrycertainly needs to be cleansed of the corruption and ineptitude whichdistinguish her government. But through a process of naturalelimination: Benazir completing her term and then, as a consequence ofher record, being booted out fairly and squarely at the nextelections. How many more political windbags can we make martyrs of? Ifwe talk of the collective wisdom of the people then we should leave itto the people to pass judgment on their leaders. One government completing its term and being booted out at the propertime through fair elections and the country will take a giant stridetowards the stability which has so far eluded it. As for the notionassiduously cultivated by the nation’s breast-beaters that the countrycannot survive three more years of kickbacks and Argentinean ponies,it can be taken with a pinch of salt. This nation has more resiliencethan its well-wishers give it credit for. If it could survive 11 yearsof Ayub Khan and eleven and a half years of Zia-ul-Haq, it can surelysurvive three more years of the Benazir-Zardari dynasty. And whoknows, having lived through the experience, its democracy, which hasbeen so far a victim of impatience, may even emerge stronger from theoutcome. 951212 ------------------------------------------------------------------- National crisis in perspective ------------------------------------------------------------------- Syed Shahid Husain SOME time ago, my friend Ardeshir Cowasjee did me the honour ofpublishing my analysis of Pakistan’s current situation in his column.For this he was threatened with the charge of sedition. I now feelobliged to own up to the views in Cowasjee’s column of September 1.Our situation is so serious that the nation badly needs candour anddebate on society and government. There is no room for the harassmentof thinkers and writers. After all, our independent Press is about theonly institution espousing accountability while every otherinstitution is emasculated or corrupted. What does one see in Pakistan? What do people say? What does the Presssay? What does one feel? One sees a burgeoning population, increasingfaster than in most countries, likely to double in seventeen years.One sees illiteracy, higher than in almost any part of the world. Onesees the breakdown of cities, led by Karachi. One sees a crumblinginfrastructure. One sees a runaway national debt — domestic andforeign. One sees reckless public expenditure and the breakdown offiscal management. One sees a country where the rich and powerful takefrom the state but pay little or no taxes. One sees systematic lootingof public financial institutions, now largely bankrupted. One hears ofcorruption reaching into the highest echelons of government. One seesthe cynical disregard of instruments of the accountability of thepeople in power. One sees the erosion of the very institutions of awell functioning nation state. One senses public cynicism aboutgovernment, its processes and its leaders. Lately, one has seen thebeginnings of the loss of confidence in the national currency and arush for the dollar — the ultimate vote of no confidence in anysystem. We have a tendency to lay the blame for our ills on foreigners, andlately the fundamentalists. Foreigners have intervened in Pakistan’spolitics. In fact, our politicians beg them to intervene. Desperatepeople, disillusioned by corrupt and inept “modernists”, will seekanswers in fundamental beliefs and some of them will resort toviolence. However, none of these explains why we are where we are. Wehave to seek answers in our own social, political and economic decay.Individual governments, all worse than their predecessors representthe progressive decline of our institutions and values. Now, we arecoming to the end of the road. Perhaps the most important single phenomenon in Pakistan is the steadyextension of, and the ultimate take over by, feudal values. Punjab,Sindh, Balochistan and parts of the Frontier were, in the old BritishIndia, the most feudal provinces. Land holdings were large. Most ofthe benefits of the expansion of irrigation went to leading familiesand the landowners were an integral part of the system of government.Prominent and wealthy families, mostly land-owning, were theintermediaries between the government and the people. It was anoligarchical system, an essential pillar of the imperial state and, inturn, nurtured by it. Since independence, we have expanded this system not just in the ruralareas, but to the urban economy as well. The instruments have beenland, permits, licences, loans from public financial institutions andtax exemptions. In each case, government favour has conferred instantwealth on individuals and families. A substantial renter class hasbeen built up, a direct result of governmental policies and actions.The resulting system of values emphasises loyalties within smallgroups — families, clans and political groupings — rather than societyat large. Of course, no nation state is totally homogeneous, nor doall governments act in a totally equitable and democratic manner. Theissue is balance. There is a limit beyond which feudal values andgroupings vitiate nation states. We may not be far from it. After independence, in allocating evacuee property and land, we merelytried to replicate the pattern that existed before independence. Wespent large amounts of public money to develop land in the southernand northern Sindh and in Punjab. The beneficiaries were not thepeople at large; they were existing landlords, senior civil servants,military officers, and politicians. We developed land in cities, andmost of the benefit went to the well-off. We acquired land inIslamabad from poor herdsmen and the benefit went to senior publicservants and politicians. Loans from public institutions, often notpaid, went to the elite. The result is the monopolisation of economic and political power by arelatively small political and economic elite. Thus, feudalindividuals, higher-echelon civil servants and the militaryestablishment are tied into a single web. The system excludes the massof the people from the concerns of the state and depends upon theloyalties and manipulations of a relatively small number of familiesand groupings. It breeds narrow relationships and discretionaryfavours, rather than open and transparent systems. This system of values would have died a natural death if we had arapidly expanding and fiercely competitive private sector, independentof government. Unfortunately, however, the control of the publicsector over the lives of individual and business entities has expandedsteadily since independence. Government and entities controlled by itare the largest employers. Government entities control the buying andselling of major agricultural commodities. Government controls majorfinancial institutions and insurance companies. Few economicactivities can be initiated or thrive without the intervention ofpublic functionaries. Increasingly, the belief across the land is thatmoney is made, not by genuine enterprise and innovation, but throughfavours extracted from government — a loan, a permit, an industrialunit, a power plant, a piece of land. Zulfikar Ali Bhutto represented a massive assertion of feudal valuesand power, as well as the expansion of the role of government. Hisslogans were populist, his methods and ends were feudal. Hisnationalisation of industry and banks destroyed, at least temporarily,a nascent capitalism, particularly in Karachi. He expanded the ambitof government, as an instrument of power rather than social well- being. The nationalisation of schools destroyed private initiatives ineducation. Naturally, the schools where his children and the childrenof his friends went to were not nationalised. He hated the highercivil service for its independence and destroyed the system of meriton which it was based. Everything was personal and, in accordance withfeudal morality, personal loyalties counted far more than principlesand ability. In the end, the People’s Party with all its populistrhetoric became the party of landed aristocracy, particularly inSindh. The values of a democratic nation state are the very antithesis offeudal values. A democratic state requires participation by a literateand politically conscious population. In a nation state, nationalloyalty and national interest take precedence over sectionalloyalties. A well functioning democratic system requires liberalvalues, transparency and accountability. All these are anathema to afeudal system. Finally, in feudal values the difference between thepersonal belongings of the powerful and the resources of the statedisappears. The state is merely an extension of their personalities,and its resources are fully at their disposal. Legality and dueprocess are not relevant. Every transaction, every favour has to bespecific and discretionary, as an aspect of personal loyalties andenmities. In a modern liberal system, government has to pull back fromcommercial transactions and concentrate on providing social goods e.g.education, health and security and a predictable, competitive, openand fair environment for private activities. In a feudal system,provision of social goods is not important, since society at large isnot important. Transactions are important, since that is how favoursand penalties are dispensed. In the system left behind by the British — reasonably independenthigher courts, a structure of civil service and, above all, the ruleof law — there was the nucleus of a modern nation state. As feudalvalues and institutions have expanded, this nucleus of the modernstate left behind by the British is in tatters. The state and itsfunctionaries are largely immune from rules and the workings of thelaw. The extent of this breakdown of systems was recently brought hometo me in a conversation with a very senior member of the financeestablishment. I asked him, who appointed the heads of financialorganisations, and what was the sanctity of the budget. Wereexpenditures incurred without provision in the budget? His answersconfirmed my suspicion of a breakdown of systems and accountability.Similarly, many would say that the independence of the judiciary isalso a matter of history. The common man certainly has no hope ofjustice from the organs of the state. Karachi represents the growing tension between this governance systemand the rapidly changing economic and social realities in Pakistan. Asin all developing countries, our cities are growing rapidly. Anincreasing part of our population lives there; in the absence of acensus, my guess is close to fifty per cent. In a highly concentratedway, cities mirror the economic and social issues of Pakistan. In themthere is much enterprise and dynamism and also extremes of misery anddeprivation. Given modern communications, aspirations as well asresentments are high. Urban peace and social tranquillity, particularly in large cities, canbe achieved only if there is a rapid growth of jobs, adequate socialservices, working infrastructure and due representation in nationaland local governments. In our feudal environment, none of these wouldhappen. In the bigger cities, particularly in Sindh, government islargely absent from social services. The private sector is expandingand dynamic in education and health, but it cannot reach the lower andmiddle classes and the poor. The urban infrastructure, particularly in Karachi, is crumbling. Largecities have no meaningful city government. The people of Karachi donot select their city government, nor control it. They do not evenknow how their taxes are used. Alienation is inevitable. Worst of all,the feudals would not allow even a census, for it would certainlychange the political balance. Nominally, we have a parliamentary system of government. In fact,because of the underlying power structure, the system is anything butdemocratic. It takes a few million rupees to contest a seat in theNational Assembly. votes are bought and sold. For all practicalpurposes, the people are largely disenfranchised. Parliamentary elections are a game of musical chairs among the ruraland urban elite and their hangers-on. When they get elected and getinto government, they use their power and influence to recover thecost of elections and some more. Land and other wealth buysrepresentation. Representation is used to solidify economic andpolitical status quo. For example, thanks to the domination of ourpolitical system by landlords, we still do not have a meaningful taxon agricultural incomes. Valuable irrigation water is provided to themat a cost which cannot even pay for the maintenance of canals. Our so- called democratic system is bereft of democratic values and anyconcept of equity and social justice. In fact, in terms of attitudes and basic values, there has been littledifference between the military government of Ayub Khan and Zia andthe parliamentary government of the two Bhutto’s. Ayub, in fact, hadsome progressive ideas — land reforms, population planning and basicdemocracy. His own incorporation into the feudal structure — he becamea large landowner and his son overnight a large industrialist — andthe feudal resistance led to the demise of his programmes. After all,two of his closest advisers were Bhutto and Kalabagh. Bhutto’s concernfor the masses lacked depth and conviction. I had a personalexperience of it while serving as his Special Assistant for EconomicAffairs in 1976. The cabinet was discussing housing in Karachi and Isuggested that instead of the large plots developed by the KDA, a lowlimit be set for plots developed at public expense and sold. I saidthat in this way public funds would be used for the benefit of lowerincome groups and many more houses would be constructed. ‘I do notwant slums,’ said the socialist Prime Minister! He did little forbasic education or health, issues close to the welfare of the commonman. In the midst of this social and political malaise, the economy is injeopardy. the government’s time horizon is day-to-day; a larger socialpurpose is missing and it has become the engine of transfer from thepeople at large to the privileged few. Our defence expenditure and therising domestic and external debt service soak up the tax revenue ofthe federal government. The paltry social expenditure, the entireadministration of the government and development projects are paid forfrom borrowed money, domestic and external. Increasingly, there is astraight resort to the printing press. We are sitting on a debt bomband the fuse is short. While serving as the World Bank’s vice-president for Latin America, Isaw this phenomenon in Brazil and Argentina. Ultimately, people lostconfidence in their governments, ran away from currencies, boughtdollars and there was unacceptably high inflation. Those who sufferedwere not the rich — they took their money abroad and had theinformation and the skills to protect themselves. It was the poor.Their real incomes, wages and standard of living were seriouslyeroded. Their economic crisis was merely a manifestation of the crisisof the state. Things did not begin to change until there was majorpolitical change and deep reform of the state. In Pakistan, we have an un-sustainable combination of social andpolitical structure and economic management. If these remain intact,economic and political crisis will recur and each time they will beworse than before. The measures taken recently are a patchwork, inresponse to a crisis that should not have surprised anyone. A littledevaluation, increase in customs duties, a promise of improved taxcollection and a promise of reduction in public expenditures.Inflation has been high, higher than admitted by the government, anddevaluation was certainly needed to improve the competitiveness of ourexports. If inflation remains unchecked, it will not be enough. Addedimport duties are extremely inefficient and should be reduced beforelong. But does the government have a programme to raise resources withoutburdening the few who already pay high taxes? That would require atotal overhaul of the taxation system, its administration andenforcement. On expenditure control, the government lacks credibility.It is not sustainable without the elimination of politically motivatedexpenditures and employment, shutting down of inefficient governmentorganisations and cutback of uneconomic programmes. Continued, perhaps rising, inflation has become a reality in Pakistan.The debt burden will keep on increasing unless the situation changesradically. Unless there is deep economic reform, Pakistan will havedifficulty in servicing its debt to its own people and foreigners.Borrowing abroad without such reform would merely add to our futurewoes. Our financial crisis is in the context of a poor economic baseand severe social and political problems. The solution may not be assimple as in the basically rich Latin American countries. As time goeson it will be difficult to avoid comparison between Pakistan and someof the failing African economies such as Nigeria’s. I often ask myself how peaceful change will come to Pakistan? Withinthe current system, is there a stimulus? Is there a mechanism? Changewithin a system comes from checks and balances, accountability,constructive debate and discussion. In our political system these donot exist any more. The judiciary is no longer a check on the excessesof the Executive. The civil service is deeply demoralised andcorrupted. The legislators are busy in transactions. The one thingthey do not do is legislate and demand accountability from theExecutive. The opposition’s disputes with the government are largelypersonal. It has developed no understanding of the basic issues of thecountry and has no programme to deal with burning questions, such asthe governance of cities, education, employment, population,independence and integrity of the judiciary, deregulation, size of thegovernment and an un-sustainable defence expenditure. The Vacuum ofleadership is palpable. The critical question for Pakistan today is how to stem the despairthat has resulted from the successive failure of leadership. For, wheninstitutions fail and leadership fails to adapt to social and economicchallenges, violence takes over. There are no clear solutions. I suppose, nations in crisis do notchange neatly. And, no doubt, the future will have its own dynamicsdictated by social issues. However, people who think and care forPakistan must mobilise a constituency for political and economicreform. The central theme of such reform has to be broad participationin governmental processes, accountability, devolution ofresponsibility and authority, deregulation and reduction of the sizeof government and its control of private activities, and freedom ofthe media. Above all, people, their welfare and development, must bethe central concern of all governmental activity. 951213 ------------------------------------------------------------------- Credit control - and growth ------------------------------------------------------------------- Editorial Column WITHIN a space of three month’s, the State Bank has reversed itsposition on commercial bank’s liquidity as inflation shows no signs ofcoming under control, although the latest figures show it isrelenting. On September 30, the State Bank has eased the liquidityposition by abolishing the credit-deposit ratio and reducing the cashreserve requirement by 1.5 per cent. On December 11, the Bank raisedthe cash reserve requirement by 3.5 per cent of the total time anddemand liabilities, excluding foreign exchange deposits. The latestmeasure has raised the reserve requirement at 32.5 per cent - 8.5 percent in cash and 25 per cent in securities. This raising of thereserve requirement will siphon off about Rs 13 billion net from thebanking system, thereby tightening the liquidity position of thebanks. Simultaneously as a demand curtailment measure, the CentralBank has increased the discount rate by 0.5 per cent to 17 per cent.This will raise the general mark-up rate by at least an equal amount.The State Bank found itself compelled to take these actions becausethe banks have not followed it advice to be cautious and selective insanctioning credit to the private sector and in intensifying effortsfor the recovery of stuck-up loans. During the period from July toNovember 23 this fiscal year, the non-government sector recorded acredit expansion of Rs 23.3 billion as against Rs 14.5 billion duringthe same period last year - an increase of about 60 per cent. The culprits is not the private sector alone. The public sector hasbeen a greater violator of the credit ceiling. It borrowed Rs 55.5billion during July-November this year as against Rs 35 billion lastyear. The two sectors together caused a credit expansion of 9.8 percent compared to 5.6 per cent last year. While the State Bank hasreduced the bank’s lending capacity to restrict credit expansion inthe private sector, it has directed the government to reduce itsborrowing for budgetary support by retiring at least Rs. 15 billionloans, thereby bringing the total borrowing of Rs 55 billion down toRs 40 billion by end December. The government should achieve the goalset by the State Bank by improving revenue collection, curtailingcurrent expenditure and increasing non-bank borrowing. The fiscalmeasures adopted following the devaluation of the rupee in October areexpected to yield a substantial addition - about Rs 16 billion - inrevenue collection. The issuance of two high-denomination prize bondsand net accruals in the national savings schemed would increase thenon-bank borrowing. There is, however, no convincing evidence ofefforts to reduce current expenditure. Unless the political leadershipsets examples of austerity, government officials will not be motivatedto bring the spending on their perks and privileges within theofficial allowed limits, although these limits themselves are verymuch on the high side. The State Bank is rightly concerned about the breach of credit ceilingbecause it erodes the value of the rupee. The Bank, being responsiblefor keeping the value of the rupee stable, has to see that money doesnot expand disproportionately vis-a-vis the growth in production.Excessive expansion in money supply over the last many years hasgenerated impulses for inflation which at present is running in doubledigits. The State Bank Governor has warned the bankers, and indirectlythe government as well, that no window-dressing of accounts as at end- December would be countenanced and statements of bank affairs mustreveal the true picture of finances. All these measures are good asfar as they go but the crux of the matter is that inflation cannot be curbed by monetary measures alone. Production has to be increased andthe biggest impediment in the way of production increases is the lawand order situation, especially in Karachi. The sector which is notaffected by civil unrest is agriculture and it is likely to do muchbetter - better than envisaged. The bumper cotton and rice crops areexpected to provide an impetus to the remaining sectors of the economyduring the second half of the fiscal year. The State Bank will have tobe vigilant that is current tight money policy does not throttle theexpected recovery. Cotton alone will require larger credit than wasallocated on the basis if a lower target of production. A large numberof infrastructure projects, which are either under implementation orat the planning stage, will have to be accommodated. The State Bankand the government, in making adjustments regarding these projects,need to be fully mindful of macroeconomics stability and therequirements of future growth. 951214 ------------------------------------------------------------------- Wrong economic remedies ------------------------------------------------------------------- Sultan Ahmed THE top economic priorities of the government should now be rapid andsustained economic expansion, particularly in the all too sluggishindustrial sector, and reducing the soaring inflation. Butunfortunately its monetary agency, the State Bank of Pakistan (SBP) iscoming up with some wrong moves which will grievously hurt the economyeventually, while it may succeed in containing monetary and creditexpansion briefly. The governor of the SBP, Dr Muhammad Yakub, who had spent 21 years inthe IMF, is trying some classical remedies in very un-classical timesin Pakistan. What he is doing and the government is confusedlyendorsing, is completely at variance with current world trends anddevelopments in the region. His first option was, of course, to tell the government to spend less,particularly in the non-productive sectors and on itself, and borrowfar less from the banking system, which simply means printing morecurrency which is our ugly or awesome financial legacy. Having failedin that effort so conspicuously, he is turning around and trying toreduce the volume of credit as well as it makes it fares more costlyat a time when the real national need is for more credit and cheapercredit to the productive sectors. His current effort to curtailcredit, and make it too costly too, will eventually fail as it resultsin critical economic contraction. He has a good example of the outcome of similar measures tried by hiscolleague from the World Bank, Mr Moeen Qureshi as care-taker primeminister. He raised interest rate from 20 to 22 per cent in an effortto contain inflation as part of a mini-budget in August, 1993, whichincluded a ten per cent devaluation of the rupee within eight weeks.The result was a fall in exports by 1.4 per cent and rise in inflationfrom 9.3 per cent in the previous year to 11.2 per cent and 12.9 percent last year. Inevitably interest rates in Pakistan will rise further and foul upthe economy. It will soon be the pleasure of Dr. Yakub to bring downthe interest rate as the industrial economy stops working or justkeeps crawling. Our rulers are fond of comparing their steps with what India has donein the economic sphere compared to that of the State Bank is notsatisfied with reducing the volume of money available with the banksto lend and has enhanced the rate at which they can borrow from it byhalf a percent more to 17 per cent, which means that 33.5 per cent ofthe bank funds - 8.5 per cent as cash reserve and 35 per cent investedon government securities are not available to the public. And what isavailable now will he more costly than before at a time when the primelending rate in Japan is two per cent, Singapore 6 per cent Malaysia7.5 percent and the US 8.75 per cent. All of them are also marked fortheir low inflation and high economic growth rate, while ourindicators in this area are frightfully disappointing and absolutelydemoralising and lend themselves to no quick fixes now. Why are we facing this predicament? Because the government will notcut its billowing current expenditure and reduce the vast waste inpublic spending and the pervasive corruption in many areas includingits numerous autonomous bodies. As a result while the bank borrowingor extra printing of currency for the whole year was budgeted at Rs.30 billion, a very large sum in an inflation-smothered economy, thegovernment has by now borrowed Rs. 55.5 billion while in the samefive-month period last year it had borrowed Rs. 35 billion. The PrimeMinister, however, wants to reduce the excessive borrowing to Rs. 40billion by the end of this month. Indisputably after the revenues ofRs. 20 billion to be collected through the mini-budget of October 28,the government should have reduced its bank borrowing or printing ofnotes by at least Rs. 10 billion. Instead the government’s borrowingis to be Rs. 10 billion above the budget. If the private sector has borrowed more than last year, where did muchof that money go? It went to the government as enhanced taxes morerigorously collected or as a result of official steps, like the 12 percent increase in POL prices through two steps and drastic increases inprices of industrial inputs through official measures and to pay highbank charges as numerous company reports show. In such inflationaryconditions with the government taxing the industrial sector heavilyand spending unwisely, the velocity of circulation of money gainsgreater momentum and aggravates the inflation. So the projection ofthe current 13 per cent inflation coming down to 11 or 10 per cent byJune, when heavier new taxes are to be imposed under the agreementwith the IMF will fall on us and will not materialise. Today trade and industry face a three-pronged drive from officialinstitutions 1. very tight money policy and costly credit. 2. Toolittle of new loans and pressure for recovery of old loans. 3. Highand varied taxation and stringent collection methods. It is not thatthese steps are wrong individually or even collectively but the timingand methodologies are as relevant as clear discrimination in thisarea. And simultaneously large, politically motivated, loans continueto be given by public sector banks. Dr. Yakub’s new theme song is commercial banks should not give long- term investment loans but the development financial insinuationsshould do that. But the official DFIs are as broke as public sectorbanks are and they range from the Bankers Equity to the Small BusinessFinance Corporation and the Agricultural Development Bank. After three years of poor economic growth at 2.3, 3.8 and 47 per cent,and large scale manufacturing growing at 2.69 per cent after 4.14 percent during the preceding two years in a country with a popular growthof 3 per cent what is the right role for the government and the SBP?It is not that all our industrialists and traders are angels butsurely the government cannot bring in another set of people fromabroad to replace them or recruit a brand new set here. Insteadthrough proper cost studies rigorous audit and scientificsurveillance, the malpractice in trade and industry will have to beeliminated. If not, the share prices will continue to suffer regardless of anykind of rescue package devised for them by the government. In fact, atthis high cost of credit it will be hard for stock exchanges to returnto normality. Look at what has happened in Japan whose businessmen are proverbiallyknown as honest and competent. The government has come up with a 142billion dollar stimulus package to revive the recession-boggedeconomy. And its banks with bad debts up to 800 billion dollars arebeing encouraged to write off much of the bad loans and have cleanreliable profiles. So in the kind of predicament we are it is wrong for the government toprint more and more money and borrow more for itself andsimultaneously make the credit for private sector less, and too costlyand then come up with varied taxes and boost the cost of productionand exports. It must think clearly and act prudently now.


SPORTS

=================================================================== 951209 ------------------------------------------------------------------- Test in N.Z. evenly balanced as Pakistan collapse ------------------------------------------------------------------- Qamar Ahmed CHRISTCHURCH, Dec.8: There was no rhyme or reason for yet anotherPakistan batting collapse in the one-off Test against New Zealandbeing played at the Lancaster Park here. The pattern set from thestart of this twin-tour continues to haunt their batting which cannotreally afford to boast about its strength or the lack of it whichremains unreliable and unpredictable. The least one would have expected after they had been put in, andtheir openers Aamir Sohail and Ramiz Raja had shared a stand of 135,was a score well over 350 runs. But it was not to be. Instead theycollapsed and crashed to 208 runs in their first innings, losing theirlast eight wickets after lunch for the addition of only 60 runs. Andthis was a pathetic performance. Pakistan’s plight could have been much more devastating had AamirSohail, who made a blistering 88, was given out hit wicket when hetripped on to his wicket and dislodged a bail when 29. As luck wouldhave it, it went unnoticed and no one even appealed. Sohail’sdismissal later after he had struck fifteen four in 94 balls was inmuch the same manner. He was wrapped on the pads by Chris Cairns, gotunbalanced and shattered his stumps behind him with his back leg. That was after his partner Ramiz Raja, was leg before to Cairns havingmade an attractive 54 when their stand had taken them to 135. Cairnswas their main destroyer with 4 for 51. With 98 for 3 in reply by theclose of the first day, New Zealand surely must have taken a sign ofrelief for their reprieve. Aamir Sohail and Ramiz Raja had no difficulty on a wicket of evenbounce and pace to take the score past fifty in only 36 minutesbatting. Danny Morrison and Chris Cairns were as much on the receivingend as were Dion Nash and Gavin Larsen as Sohail and Raja carved thefield, picking up boundaries. In the first hour 85 runs were scored and Sohail had reached his 13thfifty in Tests not much later with the help of eight fours and withonly 51 balls. Ramiz Raja had his half century soon after in 98minutes batting having hit five four. But by lunch both had gone to Chris Cairns with Pakistan on 148 for 2.After resumption, it was a complete reversal of fortunes as wicketstumbled and Pakistan batting perished. Inzamam-ul-Haq was leg before to Cairns while playing back and SalimMalik, it was thought, was a victim of a poor decision by umpire SteveDunne who adjudged him leg before off the medium-pacer Dion Nash evenbefore he was off the mark. Malik was astonished and stayed for awhile at the crease before parting. Suddenly Cairns had taken 3 for three runs in 21 balls and Nash wasalso in the hunt. Basit Ali, still in poor form, was caught at thewicket by Lee German off an outgoing delivery from Gavin Larsen for 5and Ijaz Ahmed, who had defied for 98 minutes to provide a littlesanity to the crumbling batting line-up, then hooked straight into thehands of long leg when Larsen sent a bouncer and tempted him. Ijaz’s30 was one of the four double- figure scores in Pakistan innings. Rashid Latif was taken at third slip by Craig Spearman off Morrisonand Wasim Akram was caught low down in the second slip by Bryan Youngoff the same bowler. There was no stopping as the rot continued andMushtaq Ahmed and Ata-ur-Rehman also fell at the stroke of tea. Later New Zealand openers Bryan Young and 23-year-old debutante CraigSpearman put on 48 runs for the first wicket. Young edged one fromAta-ur-Rehman to the keeper when 16 and Spearman played some handsome- looking shots for his 40 before being beaten by Mushtaq’s top-spinner.He hit a six off Mushtaq and five fours during his 105 minutes at thecrease. Adam Parore’s was the other wicket to fall off Rehman when 9 butStephen Fleming and Roger saw the day off without any further damage. 951210 ------------------------------------------------------------------- Pakistan strikes back in Test against N.Z. ------------------------------------------------------------------- Qamar Ahmed CHRISTCHURCH, Dec.9: The one-off Test being played at the LancasterPark is unarguably poised for a result. Balance in the last two dayshas swung from one side to another, and Pakistan, after conceding asubstantial first innings 78-run lead to New Zealand, have playedthemselves back in the game to finish the second day’s play on a muchhappier note. Having wiped out the deficit, they now lead by 60 runs on the secondinnings by virtue of an impressive 138 for one and if one could trustthe way in which Ijaz Ahmed and Inzamam-ul-Haq have batted to share anunbroken stand of 83 for the second wicket and score a half centuryeach, then surely Pakistan seemed to have taken control of the match.One could only wish that there is not another collapse as was in thefirst innings. Two hundred more runs and that could be unassailablebecause New Zealand have to bat last which does not bode well forthem. Despite dropped catches and disappointing fielding, Pakistan didmanage to bowl New Zealand out for 286 runs in the first inningsthrough Wasim Akram 5 for 53, and Mushtaq Ahmed having a haul of 3 for115. They were lucky too that despite running high fever Wasim Akramin his last spell of ten overs bagged 5 wickets for only 14 runs orelse things may have been rather gloomy. There is not much Pakistan can afford when they take the field for thelast time in the Test after a sizeable lead is taken because theyremember it well too that in the 1993-94 Test at this venue NewZealand chasing a target of 325 against Pakistan had reached itthrough centuries by Shane Thomson and Bryan Young. There will be no room for complacency if they have to keep the grip onthe game. After Ramiz Raja was hit on his right forearm while missinga hook shot off Danny Morrison and had to retire, both Ijaz Ahmed andInzamam-ul-Haq have shown that with a little bit of determination andgritty batting a big score can be reached. Aamir Sohail’s dismissal at 55 off a quicker delivery from the off- spinner Dipak Patel when he had made 30 was the only success that NewZealanders had in the afternoon. Both Ijaz and Inzamam battedmagnificently to frustrate the bowlers. Ijaz, who was off the markwith a four to long-leg off Patel, was the first to get his halfcentury in 116 minutes batting, having hit nine fours in 71 balls. When 35, Inazamam also reached the landmark of 2,000 runs in his 30thTest. With two blistering hits, one an off-drive and another athundering pull off Morrison, Inzamam was past his fifty, his 14th inTests. In sixty deliveries he had struck nine fours and it took himonly 59 minutes to reach it. Ijaz Ahmed is on 54 and Inzamam on 52 and a lot will depend on howlong the two stay in the middle when play gets underway tomorrow. Earlier during the day Pakistan bowlers had a frustrating session inthe field as New Zealand resuming at their overnight 98 for 3 added 81more runs to the score to go to lunch. The only batsman out wasStephen Fleming who was smartly stumped by Rashid Latif for 25 offleg-spinner Mushtaq Ahmed after he had put on 46 runs with Roger Twosefor the fourth wicket. Chris Cairns was lucky to survive a leg before appeal off Mushtaq when0 and even luckier when Ramiz Raja dropped a sitter at mid-on off thesame bowler when Cairns was 30. He made full use of that lapse in thefield to share 102 runs for the fifth wicket with Twose. But it wasnot him but Twose who was the first man out after lunch when WasimAkram trapped him in front of the wicket for 59 made in 210 minuteswith five fours. Wickets started to tumble at the other end but Cairns, who reached hisfifty with six fours in 80 balls, continued to cane the Pakistanbowling, Akram being an exception. Lee Germon was caught at the wicketoff him for 21, adding 41 runs with Cairns for the sixth wicket. Cairns was bowled for 76. Patel was taken at short leg by Sohail off alifting ball and Dion Nash edged one to the keeper to complete Akram’sfive wickets’ tally in a Test innings for the 20th time. And when Mushtaq bowled Morrison for 0, a record of 24 ducks in Test,he equalled Bhagwat Chandrashekhar of India’s who had been the proudpossessor of the previous record. 951211 ------------------------------------------------------------------- Pakistan in commanding position against N.Z. ------------------------------------------------------------------- Qamar Ahmed CHRISTCHURCH, Dec. 10: Pakistan with a commanding lead of 291 on thesecond innings ended the third day’s play in the one-off Test with afirm hold on the game against New Zealand at the Lancaster Park. Atclose they were 369 for 7 with Wasim Akram and Mushtaq Ahmed at thewicket. With two days remaining, there is plenty of time for Pakistan to tryand add another 40 runs to make the lead look more impressive. As itis, Pakistan looks a firm favourite. For this the frontline batsmenwill have to make sizeable scores as did Ijaz Ahmed who made 103, avery valuable century, and Inzamam-ul-Haq who hit an enthralling 82 toshare a partnership of 140 runs for the second wicket with Ijaz. Later during the day Ramiz Raja who scored 62, his second score ofover fifty in the match and Rashid Latif who while making 39 added 74runs with him for the sixth wicket were as much responsible forPakistan’s healthy score. It was heartening to see a change in the attitude of the Pakistanbatsmen who appeared much more keen and enthusiastic to ensure achallenging lead. That they lasted the day’s play to pass a score of300 for the first time in a Test on this tour was itself anachievement. Ijaz Ahmed’s fourth Test century and his second in thelast three Tests and Inzamam’s authoritative batting had a lot to dowith the imposing score. Having resumed the third day’s play at 138 for 1, Ijaz Ahmed andInzamam had taken the score to 195 before they were parted. In a spaceof half an hour Ijaz hit two towering sixes off Chris Cairns and DipakPatel to add to his overnight 54 and Inzamam also played somehandsome-looking drives through covers to pass the fence. A catch in the first slip by Stephen Fleming off Dion Nash endedInzamam’s innings of 82 after he had batted for 156 minutes and hadhit 13 fours. Ijaz was lucky to be dropped when 81 at point when hecut Danny Morrison hard and chest high to Adam Parore. At lunchPakistan with 215 for 2 were well in control of the situation. After resumption with only nine runs added Salim Malik, who came infacing a pair just before lunch, was caught at the wicket by LeeGermon off Morrison for 21 but Ijaz unruffled by the dismissal kepthis head down to concentrate hard and reach his fourth Test centuryand the first against New Zealand. At 89 he hit three scorching foursoff Morrison and Cairns to get to three figures in 292 minutes battingin which he faced 197 balls and hit 13 fours and 2 sixes. Just before tea he was caught at the wicket off Nash when 10 and BasitAli had an ignominious exit before he had scored. Shuffling across toCairns he was trapped in front of the wicket. Ramiz Raja, who had retired on the second day after being hit on theforearm by Morrison, came at the fall of Salim’s wicket and held hisend intact to play steadily and with a lot of patience to get to hissecond fifty in the match with seven fours. Rashid Latif, his partnerat tea, was as much meticulous. The two put on 74 runs for the sixth wicket in a stand which meant alot for Pakistan. Ramiz was leg before to Morrison stepping back to anincoming ball when 62 and Rashid Latif, who had batted for two andhalf hours for his 39, edged one from Cairns to the keeper with stumpsonly a few minutes away. But he had done his job with gusto. For his 11 runs Wasim Akram stayed there till the close batting for anhour to make sure that when he and his bowlers take on the New Zealandbatting in the second innings, they are fresh and raring to go. 951212 ------------------------------------------------------------------- Pakistan on course to win New Zealand Test ------------------------------------------------------------------- Qamar Ahmed CHRISTCHURCH, Dec. 11: Pakistan is well set for a victory in the one- off Test against New Zealand. Having taken a formidable second inningslead of 356, their bowlers had reduced New Zealand to 158 for 7. Tomorrow, of the final day, the match may be over within an hourbecause still 199 runs are to be scored if New Zealand is to win butwith only three wickets remaining there is no hope for them. ThePakistan bowlers will be fresh and leg-spinner Mushtaq Ahmed, whodevastated a rather poor batting line-up that New Zealand has on offerby taking another haul of five wickets, will be looking for more. Waqar Younis, who was unlucky not to have bagged his 200th Test victimbecause of two dropped catches by Wasim Akram and Ijaz Ahmed off hishowling, may also fulfil his dream of joining the club of those whohave taken 200 and more in Test matches. If he does tomorrow then hewould be the youngest at 24 years and 26 days to reach that landmark. Wasim Akram dropped a difficult chance at gully and later when RogerTwos, who was unbeaten at close with 44, hit a full toss to mid-on,Ijaz Ahmed a safe fielder, dropped an easy catch. The fourth day’s play was fully dominated by Pakistan who resumed at369 for 7 with an already handsome lead of 291 runs. The last threewickets added 65 valuable runs before Pakistan were all out for 434 inan hour and half play in the morning. Though Wasim was out for 19 off Chris Cairns when Stephen Flemingcaught him in the first slip in the fourth over of the day, MushtaqAhmed and Waqar Younis hammered the bowling to the tune of 41 runs forthe ninth wicket. Dropped at 11 by Cairns off his own bowling, Mushtaq was caught at thewicket by Lee Germon off Larsen for 24 and Waqar Younis, the last manout, was leg before to the same bowler for 34, his highest score inTests which also included seven lusty boundaries. There was not much resistance by New Zealand batsmen once the openingpartnership between Bryan Young and Craig Spearman, which yielded 50runs, was broken. Wickets fell at regular intervals and by tea timeNew Zealand were five wickets down for 85. With Waqar not being able to find his line and direction, the twoopeners Young and Spearman who had resumed after lunch on one withoutloss had posted the fifty of the innings in 58 minutes. Theintroduction of Mushtaq and later that of Ata-ur-Rehman changed allthat. Ata-ur-Rehman, bowling within his limits, restricted the freedomwith which the two batsmen were scoring and Mushtaq taking advantageof that lured the batsmen into making mistakes. Young was caught at the wicket by Rashid Latif when 18. Adam Parolewas leg before while attempting a sweep off Mushtaq and StephenFleming played across an incoming delivery from Ata-ur-Rehman beforehe had scored. Mushtaq Ahmed then picked up two more wickets that ofSpearman and Chris Cairns to reduce New Zealand to 75 for 5 from beingnone for 50. Spearman for his 33 had battled for 95 minutes. Going down the wickethe edged Mushtaq into the slip to Aamir Sohail and Cairns drovestraight into the hands of Salim Malik at mid-on when 8. It seemed that the match would be over by the end of the day when LeeGermon, the captain, was run out off a throw from Ijaz from mid-wicketafter Roger Twos went for a run and Germon could not make it to thecrease, the television umpire had to be consulted. When Dipak Patel went for a sweep and was bowled round his leg byMushtaq, the bowler had taken his third five-wicket haul in threesuccessive Tests and that was really a good effort. Waqar Younis then had the disappointment of watching two catchesdropped off him. 951213 ------------------------------------------------------------------- Pakistan wraps up Test win in New Zealand ------------------------------------------------------------------- Qamar Ahmed CHRISTCHURCH, Dec. 12: The final day’s play in the one-off Test atLancaster Park was only a formality. Pakistan, needing the last threewickets, wrapped up the match in just over an hour and a half torecord success against New Zealand by 161 runs. With only 37 more runs added to their overnight 158 for 7 the NewZealand second innings folded at 195 but not before Waqar Younis, thePakistan pacer reached the landmark of 200 wickets. His victim wasmedium pacer Dion Nash who after having made 22 runs was foxed by aslower delivery from Waqar. Nash had put on 29 runs for the ninth wicket with Roger Twose and hadalready hit four boundaries three for which had come off Waqar Younis.Not in any trouble against harmless deliveries from the Pakistanbowler, Nash missed a freighted off-spinner to be bowled. WaqarYounis, who had bowled 19 overs on the fourth day without any success,had at last bagged the elusive wicket and attained the target. Inelation or in frustration, he dived on the floor in his follow throughafter bowling Nash to vent his feelings. He is the fourth Pakistan bowler beside Imran Khan (362) Abdul Qadir(236), and Wasim Akram (289) to take 200 wickets or over in Testmatches and the 32nd in the history of the game but being 24 years and26 days old he also became the youngest to reach the milestone. Had injuries not hindered his progress in this game, he could easilyhave beaten Clarie Grimmett’s record of reaching the target in only 36Test matches. This was Waqar’s 38 Test and the toughest one toobecause he finished the match taking only one wicket for 113 runs. Hismeteoric rise to the pinnacle of fast bowler’s league had begun withhis first fifty wicket in only his tenth Test, his hundredth in his20th and now his tally of another hundred wickets had come in the last18 Tests — a marvellous achievement by any standards. The morning was also made memorable by the fact that Mushtaq Ahmed,the leg-spinner with 7 for 56 finished the match with 10 wickets for171. For the first time he had a tally of ten wickets in the match tobe named the Man of the Match — a magnificent performance with theball to add to his 18 wickets in the last two Tests against Australia. New Zealand had started the final day’s play at 158 for 7, needing 199more runs to win. A rather impossible task. In the third over of thematch and in his second of the day Mushtaq Ahmed had Cavin Larsencaught in the slip by Aamir Sohail for 13. Larsen had added only five to his overnight score before edging onefrom Mushtaq in the only slip. He had put on 32 runs for the eighthwicket with Roger Twose. Left-handed Twose, an Englishman and a county professional forWarwickshire dogged as he was wouldn’t take any chances. From 44overnight in 35 minutes he deservedly reached his second fifty of thematch soon after Waqar Younis had shattered Dion Nash’s stumps. Twosehad batted for just over four hours and hit four boundaries. Danny Morrison, who had equalled the record of Bhagwat Chadrashekaharof India in the first innings by being out for the 23rd time for aduck, needed another for a record but he picked up a single and waslater caught at long-on by Salim Malik off Mushtaq Ahmed as Pakistancompleted their second Test win in the last 12 days. 951212 ------------------------------------------------------------------- Imran says Pakistan cricket in a mess ------------------------------------------------------------------- Walter Fernandez KARACHI, Dec. 11: “No one can understand the mess Pakistan cricket isin at the moment, unless one understands the structure of Pakistancricket,” said former Pakistan Captain Imran Khan in an exclusivetelephonic interview to `Dawn’ from Lahore. Whereas in the rest of the cricketing world regional teams aresponsored by organisations, in Pakistan the organisations like banks,airlines, railways compete in the first class cricket. Some regionalteams also participate in first class cricket but no one takes anyinterest in them, because all the top players are contracted by theorganisations, This set-up gives rise to some major problems. Firstly, since theorganisations are based in the two main cities, Lahore and Karachi, itis more or less impossible for either the rural populations (70% ofthe country) or players from cities other then Lahore. Karachi,Rawalpindi to have any chance to represent their country”. Secondly, this system has led to favouritism and nepotism in teamselections. There is no criteria of selection in the organisations.Selection depends upon who one knows. Players who are not influentialenough have little chance of playing first class cricket,” opinedImran Khan. Because there is not a proper regional competition — like in the restof the world, first class cricket in Pakistan is non-competitive.Pakistani cricketers suffers a great disadvantage compared to onesplaying in other countries — that no first class teams possess theirown cricket grounds. Matches are played on rented grounds which arenot exclusively for cricket and as a result are over used. Hence theproblem of Pakistani wickets. Most of them are under prepared wherethe ball neither bounces nor moves off the wicket. As result, ourbowlers always struggle to bowl on green wickets while our batsmennever quite develop the techniques to play on bouncy or seamingwickets. Moreover, because of the low bounce there are hardly manycatches that carry to the slips. It is significant that Pakistan beatAustralia in Sydney a wicket which in character is more like aPakistani wickets,” asserted Imran Khan. Perhaps, the single biggest flaw in Pakistan cricket is the way thePresident of the Cricket Board is nominated by the President of thecountry. Clearly, the President of the country has neither the timenor the understanding of the game to select the right man for the job.Some of the heads of the cricket board do not have even the a basicknowledge of the game. Recently political appointees have also been made in the cricketboard, which means that with the change of government the whole boardis likely to be changed. What ought to happen like in the rest of thecricket world is that the President ought to be democratically electedby the regional elected committees — and should be answerable to them.Since the chief executive is nominated, he is answerable to no one andis essentially a dictator who has access to enough patronage tomanipulate dissenting voices in the elected council as well as thepress,” stressed the former Pakistan skipper. Pakistan’s recent disastrous run in Test cricket is almost entirelydue to the incompetence of the current chief executive. To begin withduring his tenure which is roughly two years, five captains have beenchanged. Firstly, a players intrigue was allowed to succeed againstWasim Akram and he was removed as the Captain. Salim Malik took hisplace but was removed on allegations of bribery without there being aproper inquiry. Then Moin Khan, a junior player who could not find aregular place in the team was made the captain. He was removed after aone-day series and Rameez Raja was made the captain. Raja had not beenable to find a regular place in the team for almost two years? Was heunfairly dropped for the past two years? If not, then it was wrong tomake him the captain now,” inquired Imran Khan. After losing the series against Sri Lanka last October he was sackedand finally Wasim was brought back. How can any team perform when fivecaptains are changed in less than two years. Had the Board taken astand against the rebels in the first place. Pakistan cricket wouldnot have been in its current state. Equally bizarre have been someteam selections. Ejaz Ahmed was the second highest run-getter forPakistan during last winter’s tour to South Africa and Zimbabwe.Inexplicably he was dropped from the team. He was called as areplacement for the injured Salim Malik and immediately made animpact. Majid Khan and Mushtaq Mohammad two of the best cricketing brains inthe country were made manager and coach of the team, for the seriesagainst Sri Lanka in October. After losing just one series both weredisgracefully kicked out. The chief executive also is directly responsible for mishandling thebribery allegations. When Salim Malik was blamed by the Australianplayers for offering bribes rather than immediately holding a properinquiry into the allegations, the chief executive sacked the captainand the manager and banned Salim Malik from playing any first classcricket 10 months. Later, an inquiry was held and Malik was cleared.It was the action taken by the chief executive that condemned Malikeven before he was tried,” added Imran Khan. As for the team — I feel it is far more talented than the one thatwon the 92 World Cup. Indeed, stars of the previous World Cup likeAaqib Javed, Mushtaq Ahmed, Rameez Raja, have been struggling to holdtheir place in the team — such is the depth of the talent. It isarguable that had Wasim been captaining this team for the past twoyears it would have been among the top teams of world cricket now.Although Australia is the most efficient team and as the averageAustralia player is of a higher calibre than other Test teams yetthere are no outstanding players like the Lillees and the Chapples.With the decline of the West Indies, Pakistan is now the most talentedteam in the world. Given that the World Cup will be played on the lowbounce Pakistani wicket, I make them the favourites to reach the finalof the World Cup. The question is that does Wasim have enough time tomould the team into a fighting unit before the world cup? He hasalready made a good beginning by coming back from two demoralisingdefeat to win the last Test in Australia and on the border of winningagain at Christchurch, concluded Imran Khan.

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