------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 18 December 1999 Issue : 05/51 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Agriculture incomes to be taxed: Musharraf + SC holds ATA section violative of Constitution + Vital piece of evidence handed to court in plane case + Vajpayee rules out talks with Pakistan + Army was not interested in ouster: Nawaz + Dr. Maleeha Lodhi takes over as Pakistan Ambassador + Ordinance on FCAs promulgated + Pakistan may seek another debt relief + Musharraf's economic package gets mixed response + Benazir booked in murder case + Many names removed from ECL + Punjab govt tells LHC: 30% school children do not attend classes + Work visas for foreign workers from next year --------------------------------- BUSINESS & ECONOMY + Petroleum prices raised by 10% + 10% income tax on FCAs imposed + CED being abolished, ST to be raised + Pakistan should seek debt write-off, says expert + Dispute with WAPDA: Sindh accepts award of arbitrator + CE's revival package generates activity on KSE + Check on wheat flour smuggling + SBP puts budget deficit at 4.3% of GDP for '98-99 + CBR revises rates of duty for cars + Two-year deal signed: Commercial banks reschedule $512m debt + Factors impeding export growth + Hubco case adjourned + Economics reform package: Money laundering scheme on agenda --------------------------------------- EDITORIALS & FEATURES + A speech best left undelivered Ayaz Amir + Reality check Irfan Husain ----------- SPORTS + ACB to discuss sledging issue with PCB + Tauqir Zia named new PCB ad hoc body chief + Intikhab appointed coach for Australian tour + Waqar criticizes Wasim's captaincy

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NATIONAL NEWS
991216
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Agriculture incomes to be taxed: Musharraf
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M. Ziauddin

ISLAMABAD, Dec 15: The chief executive, Gen Pervez Musharraf, on 
Wednesday announced sweeping reforms aimed at reviving the economy 
by winning back investors' confidence in the immediate run, making 
the country self-reliant in the medium term and ensuring that the 
fruits of economic development reached the common man.

In a major departure from the past, he proposed to ensure that 
agriculture incomes were taxed on the same lines as incomes from 
other sources were taxed. In this connection, he directed the 
provincial governments to design "appropriate mechanisms" to be 
introduced in June, 2000.

In another unprecedented move, the chief executive announced a 
voluntary cut in defence budget to the tune of Rs7 billion for its 
contribution towards the small public works programme fund of Rs15-
20 billion for taking in hand development projects in the poorest 
and low-income urban and rural areas.

He announced an ad hoc monthly relief of Rs100 for employees in 
BPS-1 to 16 from Jan 1, 2000, to compensate them for the recent 
increase in fuel prices. The private sector is expected to grant a 
similar relief.

He said his government would establish a 'Micro Credit Bank' for 
enhancing the access of poor people to credit.

He promised to allow tax evaders to whiten their black money on the 
payment of a 10 per cent tax. The amnesty will be available until 
March 31, 2000.

In the coming years, he said, his government would focus on 
revitalizing the agriculture sector, promoting small and medium-
scale industries, encouraging oil and gas exploration and 
development, developing information technology, tax reforms and 
poverty alleviation.

Identifying the fundamentals of the problems for the sorry state of 
economy, Gen Musharraf said that firstly the country spent more 
than what its resources permitted and secondly "we, as people, 
imported more than what we exported".

In order to win back the confidence of the investors, the CE 
proposed to formulate legislative measures that will prevent the 
recurrence of such events as the freezing of foreign currency 
accounts.

In the same spirit, he said that he had asked the concerned 
authorities to expedite tariff negotiations with the remaining IPPs 
and finalize within 30 days pending investigations and submit a 
report to him.

The two objectives that he said he had given to his economic team 
for making the economic revival plan were to pull the country out 
of the debt trap, make it more self-reliant and ensure that the 
economic policies positively impacted on the common man.

He said it was the intention of his government to seek relief in 
debt from creditors and use the savings solely for poverty 
reduction programmes.

Next, he said, his government would activate the privatization 
programme, but "the strategic assets should remain outside the 
programme". A law would be framed to determine the manner and 
methods of privatization to ensure realization of highest price, 
transparency and fair play. And the proceeds from 
privatizationwould be used exclusively for retirement of debt.

The CE revealed that steps were being taken to reduce the domestic 
cost of borrowing by about 2 per cent and "the federal and 
provincial governments will gradually eliminate borrowing to 
finance non-development expenditures".

He said a high-level committee was being constituted to suggest 
measures for the establishment of an efficient debt management 
system and to reduce the debt servicing burden.

He announced that large tracts of evacuee agricultural land in 
Tharparkar, which were being cultivated by poor and land-less 
farmers for the past 28 years, would be allotted to them. And, he 
added, state land not distributed so far would also be allotted to 
the landless peasants.

He said his government would establish a 'Corporate and Industrial 
Restructuring Corporation' which would help revive sick industrial 
units and in cases where rehabilitation was not possible, the new 
corporation would ensure an early liquidation.

The Tariff Commission, he said, would be made autonomous and misuse 
of SROs based on nepotism and corruption would be eliminated.

In the petroleum sector, he said, conversion of power plants from 
furnace oil to gas would be encouraged, pipelines would be 
developed and the entire sector, including the price of LPG, would 
be de-regulated.

The CE announced that the telecommunications section would be 
separated from the Communications Ministry and placed under the 
ministry of science and technology. A new division to be called 
'information technology division' will be created in the S&T 
ministry.

The food stamps programme for the poor, he said, was being 
revitalized and a special allocation would be set aside from the 
receipts of General Sales Tax for the purpose.

He said he intended to impose the GST and reduce the number of 
taxes and the rates gradually, adding that "at the federal level, 
primary sources of revenues will be income tax, sales tax and 
customs duties".

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991214
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SC holds ATA section violative of Constitution
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Rafaqat Ali

ISLAMABAD, Dec 13: The Supreme Court on Monday held that the law 
enforcement agencies could not be given licence to kill any person 
allegedly involved in terrorism.

A five-member bench, headed by the chief justice, held that giving 
the law enforcers the right to kill any person on the suspicion of 
being a terrorist, would be tantamount to legalizing alleged police 
encounters and extrajudicial killings in the garb of exercise of 
power by a police officer.

The SC judgment was given on the petitions filed by Jamaat-i-Islami 
and Muttahida Qaumi Movement under Article 184(3) of the 
Constitution challenging the vires of Ordinance IV of April 27, 
1999.

The court held that the provisions of section 5(2)(i) of the Anti-
Terrorism Act had not been suitably amended as had been expressly 
ordered by the court in its earlier judgment.

The court held that if the provision of section 5(2)(i), allowing 
the law enforcers to open fire, were given effect to, it would 
create horrible and far-reaching consequences. "The law enforcement 
agencies cannot be given licence to kill indiscriminately any 
person who is allegedly involved in committing terrorism".

The bench consisted of CJ Saiduzzaman Siddiqui, Justice Irshad 
Hasan Khan, Justice Raja Afrasiab Khan, Justice Mohammed Bashir 
Jehangiri and Justice Nasir Aslam Zahid.

"Such a right is to be exercized as a preventive measure and not 
made basis for launching an attack for retaliation." The court held 
that such a course could never be countenanced in a civilized 
society, particularly in Pakistan where Islam was the state 
religion. It would also militate against the Objectives Resolution 
forming a substantive part of the Constitution under Article 2-A.

The court held that it was incumbent upon the police to act so as 
to enforce Article 9 of the Constitution, which provided that "no 
person shall be deprived of life or liberty save in accordance with 
law, rather than to violate the same and expose itself to criminal 
prosecution."

The principles enshrined in sections 99 to 106 of Pakistan Penal 
Code, the court noted, were also instructive which contemplated 
that police personnel could not exercise the right of private self-
defence more than what had been directed in law.

The court held that the government should have kept in view the law 
declared by the Supreme Court in the cases of Chaudhry Farooq and 
Mehram Ali. "We, therefore, hold that section 5(2)(i) of the Act 
introduced through Ordinance XIII of 1999 to the extent indicated 
above, is violative of Article 9 of the Constitution as well as the 
guidelines provided in the case of Mehram Ali, and the same is held 
to be invalid to the above extent and requires to be suitably 
amended".

The second objection was that the provision of the impugned 
Ordinance XIII of 1999 insofar as to the extent that inserting 
section 7-A into Anti-Terrorism Act, 1997, by including illegal 
strikes, go-slows, lockouts as "civil commotion" and providing 
punishment for the same, militates against the Fundamental Right of 
freedom of expression provided in Article 19 of the Constitution.

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991218
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Vital piece of evidence handed to court in plane case
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Reporter

KARACHI, Dec 17: The prosecution in the Oct 12 plane conspiracy 
case, involving deposed prime minister Nawaz Sharif and six others, 
placed transcript of vital piece of evidence in the court's custody 
on Friday, as hearing of the related application was adjourned 
until Dec 20.

The order was passed by Justice Shabbir Ahmed, administrative judge 
of the anti-terrorism court, while disposing of the miscellaneous 
application, with two others, in his chamber.

The advocate-general of Sindh, Raja Qureshi, in his application had 
sought permission of the judge to break the seal of the packets 
containing transcripts of audio spools and confessional 164 CrPC 
statement of Ameenullah Chaudhry, in the presence of defence 
counsel.

Subsequently, notices to defence counsel Ijaz Hussain Batalvi, 
Khwaja Sultan Ahmed, Khwaja Naveed Ahmed, Iqbal Raad, Munawar 
Malik, Aftab Farrukh Ahmed Malik and Manzoor Ahmed Malik were 
issued for Dec 17. It was also mentioned in the previous case order 
that if the defence counsel did not appear, the application would 
be heard ex parte.

Raja Qureshi had also submitted that transcripts of recordings on 
spools, connected with PK-805 on Oct 12, were supplied to the 
investigating officer by the Civil Aviation Authority in sealed 
condition.

He, therefore, had prayed that a date and time be fixed and notices 
be issued to defence counsel so that the sealed transcripts could 
be produced and opened in the court before the parties, and copies 
were prepared and supplied to them.

Similar prayer was also made with regard to the statement of PW 
Ameenullah Chaudhry.

The AG had also prayed that the concerned magistrate before whom 
the statement was made should be directed to produce the sealed 
statement before the court

Advocate M.A.Malik, seeking adjournment on behalf of senior defence 
counsel Ijaz Batalvi, Aftab Farrukh and Khwaja Sultan, submitted 
that they could not appear because of their professional 
commitments.

The advocate-general, while opposing the submissions, claimed the 
defence was trying to delay the proceedings.

The prosecution also produced four sealed envelopes, two of which 
contained transcript of the recording on audio spools whereas the 
third one contained statement of Ameenullah Chaudhry. In the fourth 
envelope, video recording of the happenings outside Karachi airport 
building on Oct 12 was sealed.

While allowing adjournment till Dec 20, when the case is fixed for 
determining, with the help of aviation experts, whether the 
recording on audio spools could be copied or not, Justice Shabbir 
ordered that the four sealed packets should be kept in safe 
custody, with the Naazir of the court, for producing the same on 
the next date of hearing.

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991213
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Vajpayee rules out talks with Pakistan
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NEW DELHI, Dec 12: Prime Minister Atal Bihari Vajpayee on Sunday 
ruled out peace talks with the military rulers of Pakistan, India's 
the Press Trust of India reported.

"There is no such possibility," Vajpayee was quoted as saying in 
response to a question during a visit to the northern state of 
Himachal Pradesh.

Vajpayee, however, said India wanted normal relations with Pakistan 
as well as a resumption of talks in the spirit of a summit in the 
Pakistani city of Lahore, where he undertook a historic bus journey 
early this year.

Vajpayee said a two-month conflict with Pakistan in Kashmir in the 
middle of this year was due to a "breach of trust" by Islamabad.

Asked if General Musharraf was to blame for the conflict, he said 
"I blame Pakistan and he (Musharraf) was the army chief."

fernandes: Indian Defence Minister George Fernandes on Sunday said 
the recent military rule in Pakistan "did not bring any change in 
our defence needs or Pakistan's designs on us".

Talking to reporters informally after addressing a Sainik Sammelan 
at the EME Centre in Bhupal, Fernandes said, "The military rule in 
Pakistan is nothing new since Pakistan had been under military rule 
for almost half its life," reports the PTI. Fernandes, however, 
clarified that talks with Pakistan would not have much relevance 
unless it stopped "the proxy war against India by helping 
terrorists in Jammu and Kashmir and some other parts of the 
country."

Asked what purpose the talks would serve if Pakistan could not be 
trusted, he said, although, the US and Vietnam fought for several 
years, their army spokespersons met at Paris twice every week while 
the war was on.-AFP/NNI

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991216
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Army was not interested in ouster: Nawaz
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Dawn Report

KARACHI, Dec 15: Deposed prime minister Nawaz Sharif and his 
brother Shahbaz Sharif were released on parole and flown to Lahore 
on Wednesday to attend the funeral and other "religious rituals" of 
the ousted prime minister's mother-in-law.

Application for their release on parole for seven days was moved in 
the court of administrative judge, Anti-terrorism Court No.1, by 
Advocate Gul Bahar Korai to enable them to attend the funeral and 
Soyem of the deceased.

The notice of this application was waived by Raja Qureshi, 
Advocate-General of Sindh, on receipt of the copy of the 
application from counsel for the accused.

The application was disposed of on the undertaking given by the 
Advocate-General that necessary arrangement had been made to fly 
Nawaz Sharif and Shahbaz Sharif "today to attend the religious 
rituals at Lahore and (they) will be flown back."

The counsel for the applicants expressed satisfaction over the 
arrangement as stated by the AG.

Asked about the duration of parole and whether Nawaz Sharif and 
Shahbaz Sharif would also be allowed to attend the soyem on Dec 17, 
Advocate-General Raja Qureshi said: "I have nothing to add to the 
order of the judge."

The order does not spell out the duration of the parole despite 
specific request for seven days by the applicants.

The Sharif brothers and five others were arrested in connection 
with the alleged Oct 12 plane conspiracy and had been accused by 
the prosecution of hatching a conspiracy to hijack the flight PK-
805 and waging a war on Pakistan.

Mian Ejaz Shafi, PML MNA of the suspended assembly, had also moved 
a separate application to the Sindh home secretary, seeking 
permission for release of Nawaz Sharif on parole for seven days.

He had maintained that rules provided for meeting such 
eventualities and there were many precedents and judgments in this 
regard.

 Addresses supporters: Later in Lahore, Mr Sharif held Gen 
Musharraf and a few other generals responsible for the overthrow of 
his government, saying the army was not interested in the takeover.

He was addressing his supporters at the residence of his in-laws on 
Wednesday night where he was brought for a couple of hours with 
brother Shahbaz Sharif to offer condolences over the death of his 
mother-in-law.

He said the government had been dismissed much before Oct 12 and 
the plane hijacking case had been concocted only to justify the 
unconstitutional act.

The death of his mother-in-law, who was buried earlier in day, 
provided the two brothers an opportunity to meet each other.

While Nawaz and Shahbaz were brought from Karachi on a special 
flight under court orders, Husain Nawaz was brought from Islamabad. 
However, Husain was taken back about two hours before the arrival 
of his father and uncle.

Hamza Shahbaz and Safdar were brought from Raiwind and taken back 
after a meeting with their family members.

The Sharifs were brought in an armoured personnel carrier amid 
tight security as dozens of security personnel were deployed at the 
residence of Nawaz's in-laws.

This was also the first meeting of the Sharifs with their father, 
Mian Mohammad Sharif, who, too, had come with a special permission 
from the authorities.

Family sources said that Abbas Sharif was also allowed to offer 
condolences but he declined the offer on the plea that he was not 
"permitted to attend" the funeral prayers.

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991218
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Dr. Maleeha Lodhi takes over as Pakistan Ambassador
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Correspondent

WASHINGTON, Dec 17: Dr Maleeha Lodhi took over office for the 
second time as Pakistan's ambassador to Washington on Friday, 
making it clear to her officials that her job this time was much 
more difficult than her last stint in the US capital.

The new ambassador arrived from London on Thursday night after 
outgoing Pakistan ambassador Tariq Fatmi was asked by embassy staff 
to vacate the residence for her. Mr Fatmi left for New York on 
Wednesday.

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991218
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Ordinance on FCAs promulgated
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Rafaqat Ali

ISLAMABAD, Dec 17: The federal government on Friday provided legal 
cover to its decision on foreign currency accounts announced on 
Thursday by the federal finance minister.

In a presidential ordinance promulgated on Friday, titled 
Protection of Economic Reforms (Amendment) Ordinance 1999, Sections 
4 and 5 of Act XII of 1992 were amended.

The ordinance is as follows: "Amendment of Section 4 Act XII of 
1992: In the protection of Economic Reforms Act, 1992(XII of 1992) 
hereinafter referred to as the said Act, section 4 shall be 
numbered as sub section (1) of the section and after sub section 
(1) numbered as above shall be added namely:-

"(2) Nothing in sub section (1) shall apply to (a) any foreign 
exchange borrowed under any general permission give by the State 
Bank of Pakistan under sub section (1) of section 4 of the Foreign 
Exchange Regulations Act 1947 VII of 1947); b) Any payment from 
abroad for goods exported from Pakistan; (C) proceed of securities 
issued or sold to non-resident; (d) any payment received from 
abroad for services rendered in or from Pakistan; (e) earning or 
profits of the overseas offices or branches of Pakistani firms and 
companies including banks; and any foreign exchange purchased from 
an authorised dealer in Pakistan for any purpose."

"Amendment of Section 5, Act XII of 1992: In the said Act, in 
section 5: A) in sub section (1) for the full stop at the end, a 
colon shall be substituted and thereafter the following proviso 
shall be added namely:-

"Provided that such immunity shall not be available to citizens of 
Pakistan residing in Pakistan and to firms, companies and other 
bodies registered or incorporated in Pakistan in respect of any new 
foreign currency account opened or deposits created on or after the 
16th day of December 1999 or to any incremental deposits thereafter 
in an existing foreign currency account; and b) in sub section (2) 
for the full stop at the end, a colon shall be substituted and 
thereafter the following proviso shall be added namely:-

"Provided that such exemption shall not be available to citizens of 
Pakistan residing in Pakistan and to firms, companies and other 
bodies registered or incorporated in Pakistan in respect of any 
balance in a new foreign currency account opened or deposits 
created on or after the 16th day of December, 1999 or to 
incremental deposits created on after the 16th day of December in 
an existing foreign currency account and income therefrom."

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991217 
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Pakistan may seek another debt relief
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M. Ziauddin

ISLAMABAD, Dec. 16: Federal Finance Minister Shaukat Aziz on 
Thursday did not rule out the possibility of Pakistan seeking 
second debt relief after the current rescheduling of debt of about 
$5 billion expired 
in the next 12 or so months.

He was asked to explain what the chief executive had meant when he 
said in his address to the nation on Wednesday that it was his 
intention to seek relief in debt and use the savings solely for 
poverty reduction programmes.

Mr Aziz, who was addressing a press conference here, avoided giving 
a straight answer to the question but appeared to believe that the 
expiry date of the current rescheduling arrangement was too close 
at hand to expect the economy to improve, within this period, to a 
point where it would have enough space to start servicing the 
increased debt burden.

The finance minister, who was accompanied at the press conference 
by the federal ministers for commerce ( Razzak Dawood), petroleum( 
Usman Aminuddin) and food and agriculture (Shafqat Jamote), State 
Bank Governor Isharat Hussain, secretary-general of finance Moin 
Afzal and CBR chairman Riaz Hussain Naqvi, announced that a cabinet 
committee, headed by the interior minister, was formulating 
recommendations for curbing smuggling which, he said, was one of 
the  main "cleavages on our revenues as well as a threat to our 
industry."

In the light of committee's recommendations, several measures would 
be adopted, which would include: (i) choking of main points with 
the help of army authorities: ATA, dry ports, Dubai coastline 
(navy/coast guards), border areas, Khepias and abuse of diplomatic 
bonded warehouse facility; (ii) giving an amnesty scheme to main 
Bara markets and subsequently bringing them to main stream, (iii) 
instituting a system of monitoring of locally-marketed products for 
their origin and a thorough review of customs duties regime to 
remove their smuggling inducing character.

To regularize smuggled cars on payment of applicable duties, a new 
scheme is also being offered. The finance minister said that this 
year the government was  targeting a growth rate of over 4 per cent 
in GDP. Based on the likely good performance of the agriculture 
sector and significant revival in the textile sector, the 
government, he said, was confident that this target would be met. 
Inflation remained low, registering an increase of 3.4 per cent 
during the period July-November 1999, thanks largely to the efforts 
to contain the money supply which, he added, in the first four 
months of the year, hardly showed a growth compared to the same 
period last year.

He said although the reserves position was stable, the pressure on 
balance of payments was still there as the trade deficit 
experienced a 36 per cent deterioration during July-November 1999 

period compared to the same period last year. He said he expected 
an IMF review mission to come to Pakistan sometime early January 
when, he said, he and his colleagues would brief them on the 
economic revival plan (ERP).

In answer to a question, he said that when and if the government 
reached an agreement with the IMF on the release of the next IMF 
tranche of $280 million from the three-year ESAF/EFF amounting $1.6 
billion, he would take the nation into confidence.

He denied that the ERP had been prepared in consultation with the 
IMF.

Answering a question, he said the defence capability of the country 
would not be jeopardized by the cut of Rs7 billion applied to the 
current year's defence budget.

During the press conference the SBP Governor Ishrat Hussain said 
that at the end of October 1999 the bank default figure amounted to 
Rs148 billion.This included Rs6.6 billion default by the public 
sector units. Out of the total, Rs9.8 billion had been recovered in 
cash and Rs14 billion had been accounted for through rescheduling.

He said further that on Nov 16 the total amount of the default was 
Rs145.96 billion. The finance minister said the work of the 
Economic Advisory Board(EAB) or the sub-groups had not yet 
finished, " The board is a standing arrangement and would now be 
engaged in closely monitoring the implementation of the policy."

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991217 
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Musharraf's economic package gets mixed response
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Dawn Report

ISLAMABAD, Dec 16: Pakistan Muslim League (N) and Jamaat-i-Islami 
have expressed disappointment over the economic revival package 
presented by Chief Executive Gen Pervez Musharraf on Wednesday. 
The traders welcomed it as timely.

A spokesman for the PML(N) on Thursday said the overall assessment 
of the economic situation had not been presented in an objective 
manner in order to justify the military takeover.

He added that the achievements of the past two months were being 
exaggerated to create the impression that the economic situation 
was improving rapidly.

The spokesman said every new government, whether military or 
civilian, invariably blamed the outgoing one for every problem 
facing the nation but there was no justification for distorting 
facts and figures.

The spokesman maintained that the restoration of investors' 
confidence also required a stable government. A military 
government, he said, was regarded as a set up in transition which 
could not ensure stability.

The spokesman said the PML-N would counter any move to damage its 
image, saying the PML was the largest political party with strong 
roots in all the provinces.

Our Correspondent adds from Rawalpindi: Jamaat-i-Islami criticized 
the CE's package and termed it 'disappointing' that gave nothing to 
the already suppressed people.

In a joint statement here on Thursday, JI leaders, Dr Mohammad 
Kamal, Raja Imtiaz Taj, Syed Wahid Ali Shah, Malik Azam and others, 
said the military government had so far did nothing to provide 

relief to the people who were hard-hit from the unprecedented price 
hike and poverty.

They said in the prevailing situation of sky-rocketing prices, an 
increase of Rs100 only for the low-paid government employees was a 
'joke' with them.

They said the government was promoting the IMF and World Bank 
policies. They asked the government not to follow the dictation of 
the Fund and the Bank

Our Peshawar Bureau adds: The NWFP JI chief Prof Ibrahim on 
Thursday, rejected the CE's economic package and said the imposition of
general sales tax would further bring with it another 
wave of price hike.

He said the government's accountability process was fast treading 
towards total failure, for, no concrete step had been taken to 
retrieve millions of dollars deposited in foreign banks and the 
real culprits involved in loot and plunder of the national 
exchequer were still at large.

He said prolonging of army rule was not in the national interest 
and therefore, it should confine itself to the completion of 
accountability.

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991217 
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Benazir booked in murder case
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RAWALPINDI, Dec 16: Police on Thursday registered a murder case 
against former prime minister Benazir Bhutto and others for 
allegedly killing two Jamaat-i-Islami workers during a rally in 
1996.

The JI had on Wednesday received a copy of the Supreme Court's 
orders asking the police to register the murder case against Ms 
Bhutto, Naseerullah Babar, Arif Nakai, then commissioner Kamran 
Zafar, Zafar Iqbal Awan the then DC, Iftikhar Shalwani the then AC 
and Mushtaq Shah the then SSP under PPC 302/109 and others.

SHO Waris Khan, Raja Taifoor registered the case under FIR No. 
845/99 on Thursday night.

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991215
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Many names removed from ECL
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Bureau Report

ISLAMABAD, Dec 14: The government has removed the names of a 
majority of the members of the suspended national/provincial 
assemblies and Senate from the exit control list.

The ECL now has on it the names of only those parliamentarians who 
are required by the authorities in various cases which are either 
pending or are in the process of making.

The names of all the parliamentarians were placed on the ECL soon 
after the Oct 12 military takeover. "Now we have only the negative 
list of the political office holders to save others from 
unnecessary inconvenience," a source said, adding that the latest 
exclusion had been made following the approval of the chief 
executive.

The source said that initially the names of over 700 suspended 
parliamentarians and advisers were on the ECL which now has less 
than 150 such names.

The ECL is still being revised with a view to deleting all 
"irrelevant" names which had been added in the past.

Meanwhile, the interior ministry has stopped pursuing its earlier 
directive for the names of corrupt bureaucrats to be placed on the 
ECL. According to a new decision by the ministry, the government 
servants could go abroad by merely submitting the NOC from the head 
of their respective organizations.

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991217 
-------------------------------------------------------------------
Punjab govt tells LHC: 30% schoolchildren do not attend classes
-------------------------------------------------------------------
Reporter

LAHORE, Dec 16: Thirty per cent of the children enrolled in the 
province's schools do not actually attend classes, the Punjab 
government informed the Lahore High Court on Thursday.

Additional Advocate-General M Bilal Khan also furnished to Justice 
Tasadduq Hussain Jilani a copy of a report submitted by the home 
secretary on the killing of about 100 children by a psychopath to 
the provincial governor on December 11.

The copy was produced in a sealed cover but the AAG left it to the 
court's discretion to make it public after going through its 
contents in chamber first.

Petitioner-lawyer MD Tahir made an impassioned appeal to the court 
on Thursday to order drastic measures against various agencies 
responsible for protecting the lives of children, ensuring their 
education and promoting their welfare.

The mass killings are reflective of the entire society's 
indifference to the proper upbringing of the new generation, he 
said. Justice Jilani asked the lawyer to show patience and assured 
him that he would proceed with his petition in a manner that helps 
resolve the issues raised in it.

The crux of the problem is that a hardened criminal was able to 
exterminate 100 children and dissolve their bodies in acid in a 
congested locality without being noticed, least of all caught. He 
would try to find out the reasons behind the criminal neglect that 
facilitated the heinous offence and hoped that some good would come 
out of these proceedings.

The AAG informed the court that eight centres have been established 
for runaway children by the social welfare department in the 
province. Asked by the court who is responsible for locating 
runaway children, what procedure is adopted to admit children to 
the centres and what measures are taken to ensure basic needs and 
education of the inmates, the AAG sought more time to gather and 
produce the requisite information.

The court gave another short adjournment and asked the law officer 
to furnish details about the eight rehabilitation centres on Dec 
21.

He was also asked to ascertain whether Pakistan being a signatory 
to the Right of Child Convention sends annual reports to the UN 
agency concerned on the state of its children. A copy of the latest 
such report is to be supplied to the court by Dec 21. 

The court also asked the AAG to find out the number of children of 
school-going age and the percentage of children who really attend 
school. He is to inform the court whether it is poverty alone that 
keeps children away form school and compels them to earn a living? 

How many of the children are forced into begging? What measures the 
government has taken or intend to take for compulsory primary 
education? The court asked the AAG and gave him until Dec 21 to 
answer the queries.

The law officer also produced on Thursday the names and addresses 
of all the parents whose sons were allegedly murdered by the self-
confessed killer, Javed Iqbal.

Advocate Tahir submitted that according to his information, 3,000 
children are missing in the province. Child labour is rampant, he 
added, referring to the large number of shoe-shine boys and shop 
and workshop workers.

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991212
-------------------------------------------------------------------
Work visas for foreign workers from next year
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, Dec 11: The government has exempted the expatriate 
foreigners from obligation to keep a work permit with them, 
specially in some of the newly opened sectors of the economy.

According to a press note issued by the Board of Investment 
(BOI) here on Saturday, the procedure for grant of permission to 
expatriate foreign personnel in Pakistan has been simplified which 
will be applicable from Ist January, 2000.

The foreigners, specially those working in the sectors like 
agriculture, services, manufacturing, industry, infrastructure and 
social sector will now require only work visa and "not" work 
permit.

According to details, a uniform policy has been extended to exempt 
technical and managerial personnel from work permit. 

 However, no permission will be given to foreign expatriate 
personnel for jobs other than technical and managerial personnel to 
effectively realise the obligation of "Pakistanization policy".

A committee under the chairmanship of the secretary BOI will 
periodically consider and decide the cases of grant of work visa to 
the foreign expatriate personnel. 

 The company requiring employment of foreign national will submit 
the request on prescribed application from the Board of Investment 
(FTP) wing, Islamabad, Karachi or from the ministry of interior and 
its regional immigration passport offices. Work visa will be 
authorised and issued by the ministry of interior within a month on 
the basis of the decision of the committee.

Also the work visa will be allowed for a period of three to five 
years or till the validity of the passport. 

The concerned Pakistani Mission abroad will grant work visa to the 
applicant on the basis of the authorisation of the ministry of 
interior. 


=================================================================== 
 BUSINESS & ECONOMY
991212
-------------------------------------------------------------------
Petroleum prices raised by 10%
-------------------------------------------------------------------
By Rafaqat Ali

ISLAMABAD, Dec 11: The government on Saturday increased the prices 
of petroleum products by an average of over 10%. The increase will 
push up the price of one litre petrol (premier) by Rs2.96 from 
Rs26.04 to Rs29. The government has, however, made a comparatively 
lesser increase in the price of diesel (HSD). The revised price of 
diesel will be Rs11.26.

The highest increase has been made in the price of furnace oil at 
Rs7,285 a matric ton - an increase by 16pc.

The government has announced that in future the prices would be 
adjusted on quarterly basis and the benefits of any reduction in 
international prices would be passed on to the consumers.

The revised prices are: MS (Regular) Rs27; HOBC (high octane) Rs32; 
Super Rs29; MTBE Rs38.77; SKO (kerosene) Rs11.25; HSD (diesel) 
Rs11.50; LDO Rs9.35; JP-4 Rs12.65; and Furnace Oil Rs7,285 matric 
ton with an increase of Rs1,214.50 a matric ton.

This is the third increase in the petroleum prices since May, 1998. 
Immediately after detonating the nuclear devices, the government 
had announced 25pc increase in the POL prices except for diesel.

Next, just before the presentation of this year's budget a 10.5pc 
across-the-board increase in the oil prices was announced.

Those increases had reportedly yielded to the government a hefty 
Rs20 billion in the form of fuel surcharges. Official sources said 
the government came under immense pressure to take the latest 
"unpopular decision" as the POL prices in the international market 
had gone up steeply.

For the last many years fuel surcharge has become one of the major 
revenue incomes of the government.

 In the last financial year, Rs74 billion was collected in the form 
of petroleum surcharges.

A spokesman for the petroleum ministry claimed that the prices had 
been reviewed keeping in view the international price trend of 
petroleum products and also because of the commitments the 
government had made with international agencies.

The spokesman said that since the last revision was made in May, 
1999, the international petroleum prices had gone up by over 50pc.

The government, however, has made special consideration in 
reviewing the prices of diesel as it was used in agriculture and 
public transport.

However, since 1990, when the domestic petroleum prices were linked 
to the then border prices of 24 dollars a barrel, no decrease was 
ever made in these prices though at one point in 1997 the world oil 
prices tumbled to as low as 8 dollars a barrel.

The following are the existing and revised prices of POL products:

New Rates

Product:     Old      Revised      Increase
          Rs/litre    Rs/litre     Rs./litre

MS          24.40      27.00         2.60 

HOBC        28.50      32.00         3.50 

Super       26.04      29.00         2.96 

MTBE        34.05      38.77         4.72 

SKO         10.50     11.25          0.75 

HSD         10.66     11.50          0.84 

LDO          8.50      9.35          0.85 

JP-4        11.50     12.65          1.15 

FO (Rs./MT)     6070.50      7285.00      1214.50


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991217 
-------------------------------------------------------------------
10% income tax on FCAs imposed
-------------------------------------------------------------------
Correspondent

ISLAMABAD, Dec 16: Central Board of Revenue on Thursday announced 
imposition of 10 per cent Income (Withholding) Tax on Foreign 
Currency Accounts (FCAs) from Dec 16 (Thursday), and withdrawal of 
the immunity 
from investigation into the source of money put into FCAs.

A CBR announcement said that while it was still working out the 
details of Tax Amnesty Scheme announced by Chief Executive General 
Musharraf on December 15, 1999, the details offered in respect of 
10% levy and withdrawal of immunity for FCAs holders were as 
follows:

The profits on new Foreign Currency Accounts (FCAs) opened by 
resident persons on or after December 16, 1999 and incremental 
deposits in existing FCAs made or after this date, shall not be 
exempt from Income Tax.

The profits on such deposits will be liable to 10 per cent tax 
withholding. Immunity for the existing accounts holders will 
continue. The profits on Special US Dollar Bonds (USDBs) purchased 
out of new FCAs opened on or after Dec 16, 1999, or out of 
incremental deposits made after this date in existing FCAs shall 
not be exempt from Income Tax.

The profits on such deposits would be liable to 10 per cent tax 
withholding. The immunity from probe into source of funds invested 
in FCAs and Special USDBs is being restricted to the existing FCAs 
and the bonds purchased from such accounts.

No immunity would be available in respect of Special USDBs 
purchased out of new FCAs opened on or after Dec 16, 1999 and 
incremental deposits made on or after that date in existing FCAs.

The immunity of funds invested in purchase of state-owned 
enterprises, government lands and assets or in the assets sold by 
banks and DFIs in pursuance of court decrees would not be available 
on or after Dec 16, 1999.

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991215
-------------------------------------------------------------------
CED being abolished, ST to be raised
-------------------------------------------------------------------
Correspondent

ISLAMABAD, Dec 14: The federal government has decided to abolish 
central excise duty and increase sales tax rate. These two major 
steps are expected to be announced by Chief Executive Gen Pervez 
Musharraf as two components of his economic revival package on 
December 15.

Well-placed sources told Dawn on Tuesday that the government had 
decided to remove the CED, at present applicable on 26 items, and 
in its place increase the rate of GST from 15 per cent to 18 per 
cent.

 It has also been decided that a new duty in the name of 
entertainment tax would be imposed at provincial level.

The package is also expected to include a decision about the GST on 
retailers and the services tax on professionals.

The sources said the government had decided not to extend the GST 
to retail sector for the current financial year while GST on 
services would not be imposed for atleast a year.

They added the government had also decided to set up tax tribunals 
to speedily dispose of appeals filed against the tax notices and 
all the taxation disputes.

The economic revival plan, they said, was also expected to carry 
measures for broadening the tax base without imposing GST on trade 
sector below the annual turnover of Rs5 million.

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991212
-------------------------------------------------------------------
Pakistan should seek debt write-off, says expert
-------------------------------------------------------------------
Correspondent

NEW YORK, Dec 11: Pakistan should negotiate a major debt write off, 
similar to that being given to the Heavily Indebted Poor Countries 
(under the HIPC initiative), reorient International Monetary Fund's 
approach towards the country and build economic institutions, says 
a Pakistani economist Omar Noman. Noman, who works at the United 
Nations Development Programme (UNDP) says "there is no point in 
trying to deny that Pakistan is bankrupt. Instead of denial, this 
should be used as a creative opportunity.

This debt write off process has accelerated last month because of 
the G-7 recognition that previous efforts were ineffectual. 
Pakistan is in a worse condition than many of the countries covered 
under HIPC.

In an article following dismissal of Nawaz Sharif's government and 
the admission by the Chief Executive, General Pervez Musharraf, 
that Pakistan's economy was in worst shape than first imagined, 
Noman has given a ten point agenda, mapping an arduous road to 
reform and recovery.

Noman, who sits in the office of UNDP's Human Development Report 
created by Dr Mahbubul Haq says that "there should be three core 
objectives for creating a more harmonious society namely reducing 
poverty, reducing inequality and expanding the middle class. The 
first two are emphasized frequently as an objective, while the 
third is neglected. 

 These objectives require a private sector led human development 
strategy, with a strong role for the State in providing those goods 
and services that are undersupplied by the market. These are 
typically referred to as public goods."

"Pakistan needs human development for its survival. Poverty has 
increased substantially in the 1990s, as sluggish growth and the 
end of the Middle East boom have crippled employment opportunities. 
Pakistan has the worst literacy rate in the world and the highest 
population growth rate. Inequality is now worse than it was in the 
Ayub era of the 22 families," he says.

Emphasizing that he was writing this in his personal capacity and 
not as an official of the UNDP, Noman told Dawn that he had sent 
his 10 point agenda for reform to Chief Executive and finance 
minister. Besides reform agenda Noman expounds on code of conduct 
and ethic issues too in his dissemination.

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991217
-------------------------------------------------------------------
Dispute with WAPDA: Sindh accepts award of arbitrator
-------------------------------------------------------------------
Sabihuddin Ghausi

KARACHI, Dec 16: The Sindh government has, in principle, accepted 
the award given by the arbitrator on its electricity bill dispute 
with the Water and Power Development Authority but it wants a scale 
down of its payment to Rs1.2 billion from Rs2.6 billion.

The Sindh government is demanding a scaling down in payment because 
it disputes the Wapda's contention on a reconciliation exercise 
done way back in 1996. On the basis of this exercise Wapda contends 
that the agreed amount was Rs2.6 billion but the Sindh government 
maintains that it was Rs1.15 billion.

Federal arbitrator Justice (retd) Shafiur Rehman in his award, 
announced on November 19 last, accepted in principle the excess 
billing by Wapda and suggested a total cut of 45 per cent on four 
year's billing amount.

The award has, however, maintained a non-committal position on the 
amounts said to have been agreed in reconciliatory exercises which 
is now apparently leading to opening up new disputes.

"The parties have not considered themselves, either in the past or 
in proceedings before the arbitrator, bound by any agreement or 
adjustment", it says. "The reconciliation on ground was never a 
total. It was only partial following no legal principle", observed 
the award which points out that "even the signed papers relating to 
reconciliation were disputed for their genuineness and the legal 
effect".

The principle of applying a 45 per cent cut on Wapda bill amount 
has two components. The award considers Wapda bill amount 20 per 
cent excess without any explanation. Another allowance of 25 per 
cent cut was given in respect of unauthorized power connections and 
pilferage.

 The award reveals that there are 10,000 unauthorized connections 
in the province and holds both Wapda and the Sindh government 
responsible for the same.

There are 16,000 regular connections of which 13,500 are of the 
government departments, 350 of the autonomous organizations and 
3,500 of about 900 local bodies institutions.

"Wapda has, therefore, to own the consequences of its employees 
acting as accomplices and cannot pass the financial burden of the 
thieves on the province", the award declares but at the same time 
blames that the "Sindh government and its functionaries were at 
fault in not taking care of schools, police stations and posts, the 
core activities of the government, in the matter of getting for 
them proper electricity connections for long periods".

The award offers Rs2.7 billion relief to Sindh government by way of 
refund on the billing of its departments only from the Rs20.78 
billion demanded by Wapda. After a cut of 45 per cent the amount 
comes down to Rs11.43 billion. The total amount deducted from Sindh 
government was Rs14.14 billion hence Rs2.7 billion was declared in 
excess and to be refunded to Sindh.

The Rs31.39 billion claim includes the disputed "reconciliatory and 
agreed bill amount of Rs2.6 billion" according to Wapda and Rs1.2 
billion being asserted by the Sindh government.

After examining all the legal and financial implications of the 
award, the Sindh government is understood to have shown its 
willingness to accept it and even to pay the liability that is over 
and above the amount of Rs14.43 billion deducted by Wapda at source 
from the monthly share of the provincial government in the federal 
fund during last four years.

While the Sindh government awaits Wapda's reply on its 
communications. It has set as 'standard operating procedure' for 
all its offices and those of the autonomous organizations and the 
local bodies to follow in respect of receiving, correcting and then 
paying the Wapda bill since July 1999.

Officials complain that the Wapda has still not regularized the 
10,000 unauthorised connections through which schools, 
dispensaries, hospitals, police stations and other categories are 
supplied electricity.

Even where the meters have been installed most of them are 
defective and tampered and there is no surveillance system to 
ensure proper meter reading.

Officials estimate the total investment on installation of correct 
meters hardly at Rs35 to 40 million. The Sindh government has, on 
various occasions, expressed its willingness to share the cost.

The ultimate beneficiaries of this situation are the corrupt 
employees of Wapda and the Sindh government who thrive at the cost 
of the honest consumers and tax payers.

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991217 
-------------------------------------------------------------------
CE's revival package generates activity on KSE
-------------------------------------------------------------------
Reporter

KARACHI, Dec 16: The economic revival package announced by the 
chief executive Gen Pervez Musharraf was well-received by the stock 
market as it generated a lot of activity in the rings on optimism 
that some of its measures could really give the needed boost to the 
ailing economy and stock trading.

Although the KSE 100-share index posted a fresh rise of 1.5% or 
20.81 points at 1,391.50, instances of profit-selling on some 
counters were not lacking as a section of investors realized quick 
gains apparently not being too enthusiastic about the impact of the 
package on the economy or stock trading but selling was well-
absorbed.

But what seems to have created a buying euphoria on selected 
counters and sent a wave of optimism in the rings was news of 
deregulation of the petroleum sector to lure foreign investors in 
the oil exploration business, said leading member of the KSE.

He said although there was no precise word on the Hubco issue as 
widely expected but the chief executive's promise to sort out the 
issue with its management in a month's time has generated a good 
bit of optimism. But instances of profit-taking were not wanting as 
some of the long parties sold at the higher levels.

Energy shares led the market advance under the lead of PSO and 
Shell Pakistan attracting massive buying and so did leading 
fertiliser shares including Fauji Fertiliser and Engro Chemical on 
reports of anti-dumping duty on imports of urea. Shell Pakistan and 

PSO reacted bullishly to the deregulation news rose by Rs5.25 and 
Rs16.05 respectively amid brisk trading.

'The chief executive may not have announced in clear terms, the 
undertone of his message was to give due protection to the local 
industry and that will certainly work in the weeks to come', said a 
stock broker.

The widely rumoured two per cent cut in the bank lending rate 
aiming at to boost industrial activity, will pave the way for the 
held up new flotations, he added.

Everyone appreciated the cut of Rs7bn in defence spending, which 
could lead to an identical reductions in the government departments 
paving the way for a real economy drive, members of the KSE 
including its chairman were of the unanimous view.

'It is a good beginning and only an armyman could do that', said a 
stock analyst adding 'what is important is the message behind it 
for the others'.

Ten percent tax waiver on savings together with doing away the 
wealth tax could give the needed push to deposits on the saving 
accounts, which in turn could push the current rate of saving to 
20% from the current 14%, he added.

Most of the leading shares in all the sectors posted smart gains 
under the lead of 2nd ICP, Al-Meezan Fund, Mehmood Textiles, Mari 
Gas on news of incentives to promote the use of gas and enhance 
refining capacity, Engro Chemical, Packages and United 
Distributors, which rose by Rs3.15 to Rs4.00. But the biggest gain 
of Rs45.00 was recorded in Grays of Cambridge, which suddenly burst 
into activity and finished at the peak of the day Rs350.00 against 
its face value of Rs10.00.

DEFAULTING COMPANIES: Mian Textiles again came in for active 
support and was marked up by 25 paisa on 17,000 shares followed by 
Khurshid Spinning lower five paisa on 3,000 shares and Allied 
Motors, up five paisa on 2,000 shares. National Modaraba was quoted 
at 20 paisa on 500 shares. Market at a glance

TONE: steady, total listed 769, actives 228, inactives 541, plus 
85, minus 90, unc 53.

KSE 100-SHARE INDEX: previous 1,370.69, today's 1,391.50, plus 
20.81 points.

TOP TEN: gainers Grays of Cambridge Rs45.00, PSO 16.05, Shell 
Pakistan Rs5.25, United Distributors Rs5.00, Mehmood Textiles 
Rs4.00.

LOSERS: BOC Pakistan Rs16.00, Lever Brothers Rs20.00, Transpak 
Corporation Rs2.75, Jahnagir Siddiqui Rs2.50, Millat Tractors 
Rs2.25.

TOTAL TURNOVER: 139.154m shares.

VOLUME LEADERS: Hub-Power 36.651m, PSO 33.600m, ICI Pakistan 
20.986m, Engro Chemical 8.070m, Nishat Mills 5.497m shares.

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991214
-------------------------------------------------------------------
Check on wheat flour smuggling
-------------------------------------------------------------------
Shaukat Ali

LAHORE, Dec 13: Punjab administration on Monday enhanced patrolling 
in the areas bordering with India to further ensure that no wheat 
flour smuggling takes place across country's international borders. 

The provincial government is also examining as how much wheat, or 
wheat flour, it can supply to the NWFP where the flour shortage 
crisis has been worsening. 

Officials of the food departments of the Punjab, NWFP and the 
federal government had been keeping a close watch over the 
situation and were ready to tackle it accordingly if the need be, 
the sources said. 

 They dispelled the impression being given by some political 
parties in the north frontier province that wheat flour was being 
smuggled to India due to which the flour shortage crisis was 
hitting the NWFP. 

'On the contrary there have been reports about wheat flour 
smuggling taking place across the Pak-Afghan border in recent 
weeks.

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991215
-------------------------------------------------------------------
SBP puts budget deficit at 4.3% of GDP for '98-99
-------------------------------------------------------------------
Haris Anwar

KARACHI, Dec 14: Pakistan's actual budget deficit figure for 1998-
99 comes to 4.3 per cent of GDP, almost one percentage point higher 
than the figure given at the time of budget announcement.

The State Bank's annual report on the economy, released on Tuesday, 
tends to disagree with the previous government's accounting method 
which treated receipts on account of refund of F-16 money and the 
value of Saudi oil facility as revenues instead of financing.

The report has not mentioned these two items under a separate head, 
but its review on the state of economy says: "If adjustments are 
made against one time receipts of some items, the budget deficit 
comes to 4.3 per cent of GDP."

The report, however, is still treating these items in the 
miscellaneous non-tax receipts, showing Rs 55.8 billion revenues 
under this head in fiscal 1998-99 against Rs 17.8 billion accrued 
during 1997-98.

This solves the riddle faced by many economists that how did the 
previous government manage to cut budget deficit to 3.4 per cent of 
GDP from targeted 4.6 per cent of GDP.

Unlike the refund of F-16 jets' money from US government which is a 
one time receipt, the Saudi oil facility is still financing quite a 
substantial portion of Pakistan's annual oil import bill. During 
the running fiscal, about $183 million oil imports were financed 
through this facility.

The Saudi government had offered an unknown amount in oil financing 
last year to mitigate Pakistan's foreign exchange problems in the 
wake of international economic sanctions.

On the one hand, this friendly help reduced the pressure on 
Pakistan's balance of payment, but also proved a boon for the 
fiscal account.

The financing, which started from Nov-Dec 1998-99 following the 
visit of Crown Prince Abdullah bin Abdul Aziz Al-Saud, one point in 
time was providing about 100 thousand barrels of oil a day, meeting 
about one-third of country's oil demand.

Officials at the ministry of petroleum, however, are reluctant to 
comment on the exact details of the financing, but a financial 
source said this facility might ultimately be turned into a gift. 
"I think after the windfall gains because of oil price surge in the 
international market, you can expect this to be turned into a 
gift," a well-placed source said. According to original terms it 
was like a supplier's credit with payment on a deferred basis.

Financial experts said now Pakistan would be required to restrain 
expenditure growth and resort to fundamental broad-basing of the 
tax system to cut budget deficit to 3.3 per cent of GDP from 4.3 
per cent as agreed with the IMF.

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991217 
-------------------------------------------------------------------
CBR revises rates of duty for cars
-------------------------------------------------------------------
Correspondent

ISLAMABAD, Dec 16: Central Board of Revenue has announced revised 
import duty rates for cars, other 4x4 and has withdrawn the 
consolidated duty structure announced in the budget 99-2000 for 
vehicles meant 
for transport of commuters.

The duty rate of cars and other 4x4 vehicles and their respective 
engine capacity, are as follows:

cars of a cylinder capacity not exceeding 1000 CC new, in CKD/SKD 
condition, old, used or reconditioned (100% ad val). The duty 
structure for cars of a cylinder capacity exceeding 1000 CC but not 
exceeding 1500 CC, would be as follows: not exceeding 1300 CC, new, 
in CKD/SKD condition, old, used or reconditioned (120% ad val). For 
the cars exceeding 1300 CC (but not 1500 CC) whether new, in 
CKD/SKD condition, or old, used and reconditioned, the duty would 
be 150% ad val.

Duty on cars and other 4x4 of a cylinder capacity exceeding 1500 CC 
but not exceeding 3000 CC would be as follows: new, in CKD/SKD 
condition, old, used or reconditioned not exceeding 1800 CC 150%, 
exceeding 1800 CC 225%,. The same rate would apply to those 
exceeding 3000 CC.

For other vehicles with compression ignition internal combustion 
piston engine (diesel or semi-diesel), the duty rate would be as 
follows: 100% ad val for those not exceeding a cylinder capacity up 
to 1000 CC whether these are new, in CKD/SKD condition, old, used 
or reconditioned. The duty rate for those between 1000CC and 1300 
CC would be 120%.

The import duty rate of 150% would be applicable to such vehicles 
with cylinder capacity between 1300 CC and 1800 CC whether these 
are new, old, used, reconditioned or in CKD/SKD condition. Such 
vehicles, with cylinder capacity between 1800 CC and beyond, would 
attract the import duty rate of 225%.

Ambulances would be charged import duty at 35% ad val, while 4-
wheel drive vehicles (4x4) other than motor cars, including 4-wheel 
drive motor cars and station wagons built on chassis other than car 
chassis would be attracting, like all other vehicles not stipulated 
in this duty chart, an import duty rate of 225%.

The consolidated duty structure applicable to Vehicles meant for 
transport of persons falling under the Pakistan Customs Tariff 
heading No 87.03, charged under the Finance Act 99, is as follows:

Engine capacity up to 800 CC US$ 5000; between 801 CC and 1000 CC 
US$ 10,000; 1001-1300 CC US$ 15,000; 1301-1600 CC US$ 20,000; 1601-
1900 CC US$ 32,000 (4x4 US$ 25,000); 1901-2300 CC US$ 55,000 (4x4 
US$ 30,000); 2301-2800 CC US$ 80,000 (4x4 US$ 40,000); 2801-3500 CC 
US$ 120,000 (4x4 US$ 50,000); 3501-4200 CC US$ 150,000 (4x4 US$ 

60,000); and more than 4200 CC US$ 175,000 (4x4 US$ 70,000).

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991213
-------------------------------------------------------------------
Two-year deal signed: Commercial banks reschedule $512m debt
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, Dec 12: Pakistan on Sunday signed the PTMA (Pakistan 
Trade Maintenance Agreement) with eight commercial bank creditors 
for the rescheduling of $512.3 million of short-term trade credits, 
a finance ministry announcement said.

In the terms of this agreement, the credits have been rescheduled 
under an amortisation schedule that begins from Jan 1, 2001 and 
ends on June 30, 2002. The agreed rate of interest is Libor plus a 
margin that ranges from 1-1.5% during this period.

According to an official handout, this agreement is part of the 
government's strategy of orderly debt management and normalising 
relationships with creditors. The Faysal Islamic Bank is the agent 
bank.

The finance minister, whom the bankers met after the signing of the 
agreement, expressed the government's deep appreciation for the 
support, understanding and cooperation which the banks had extended 
to the present government by rescheduling their credits.

Details of the syndicated amounts that have been rescheduled are as 
follows: Arab Investment Company, borrower is PSO, $50.5 million; 
ANZ Grindlays, PSO, $27.7m; ABC Islamic Bank, PSO, $39.1m; 
Chase/Indosuez, PSO, $40m; ABN-Amro Bank N.V., Ministry of 
Petroleum and Natural Resources (M/o P&NR), $150m; Dubai Islamic 
Bank, M/o P&NR, $25m; Faysal Islamic Bank of Bahrain, E.C, M/o 
P&NR, $100m; ANZ Grindlays, NRL, $30m; Citibank, RECP, $50m.

The government believes that the signing of the PTMA will improve 
Pakistan's short-term foreign currency from selective default to B 
by Standard & Poors. Long-term foreign currency issue rating is 
also expected to increase from selective default to B minus.

The improved credit ratings signal renewed investor confidence and 
will go a long way in assuring Pakistan's access to international 
financial markets.

Earlier, Pakistan had already signed agreements for rescheduling 
its medium-term commercial bank loans for an amount of $365m, and a 
short-term loan of $50m.

Pakistan's voluntary exchange offer for its Eurobond has also been 
a great success. Pakistan launched the offer on the 15th of 
November 1999 for three outstanding issues amounting to 
approximately $608m.

The subscription to the new bond has been US$557.7m, approximately 
92% of the outstanding amount. The closing date is scheduled for 
the 13th Dec, 1999. The new bond has been rated as B minus by 
Standard & Poors, compared to a D rating to the existing bonds 
prior to the exchange.

Pakistan is the only country where bonds rescheduling has met with 
such a large subscription, the handout said. It claimed the level 
of participation was a clear indication of investor confidence in 
Pakistan's economic prospects and in the government's ability to 
resolve the issues that faced Pakistan today.

Separately, Pakistan is pursuing debt restructuring with both Paris 
and non-Paris Club creditors. This restructuring is estimated to 
provide debt relief of over $3 billion during the consolidation 
period which ends on 31st December 2000.

So far, agreements have been signed/initialled with 9 creditors 
countries giving a total relief of $1.4 billion approximately.

These countries are Austria $20.127m; Canada (CIDA $27.342m and 
CWB$15.280m), Denmark $3.52m; Germany $254m; Netherlands (NI loans 
$30.12m); Norway $11.63m; Spain $23.08m, Sweden $81.99m; and the US 
$926.15m. Negotiations with other creditors are proceeding apace.

The announcement said the a total of $2,884.7 million debt had been 
rescheduled under agreements with the creditors. This includes 
bilateral ($1,400m), commercial banks ($927m) and bonds ($557.7m).

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991216
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Factors impeding export growth
-------------------------------------------------------------------
Reporter

KARACHI, Dec 15: The Export Promotion Bureau (EPB) feels problems 
such as delay in duty drawback, lack of export insurance guarantee 
scheme, unsatisfactory export refinance scheme are restricting the 
growth of exports.

The federal Minister for Commerce, Production and Industries Abdul 
Razzak Dawood was apprised by the vice chairman of the EPB during a 
meeting with the senior officer of the bureau here on Wednesday.

The minister was further informed that due to lack of proper 
shipping facilities, visa difficulties experienced by the visiting 
businessmen are causing stagnation in the growth of export- 
oriented industry.

In response to these assertions the minister said that export 
enhancement was the answer to the present economic crisis faced by 
the country.

Dawood advised the EPB officers to reorient their approach and 
develop a true export culture in the country. The minister said 
that we have to achieve the export target which was not difficult 
given proper strategy and dedication on the part of all concerned.

He advised the EPB to hold intensive discussions with the 
representatives of all those sectors which recently, have been 
showing a declining trend in exports. He added that we have to 
identify problems being faced by those sectors and get them 
resolved speedily.

The minister directed the EPB to arrange his meeting with the 
representatives of leather and footwear associations to review the 
situation in this sector which of late has been on the decline with 
several manufacturing units having closed down their operations.

Dawood said that we have to encourage value addition in the textile 
sector as it is the largest sector of the economy and must show 
good progress in terms of value addition.

 He added that given our capacity we can increase the exports 
considerably in this sector. He also directed that to pay attention 
to those regions where our quantum of export was less and which 
could be enhanced with increased promotional activities.

He directed that the Export Facilitation Committee, which is headed 
by the vice chairman EPB, must meet every week to resolve various 
procedural problems being faced by exporters with various agencies.

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991217 
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Hubco case adjourned
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, Dec 16: The Supreme Court on Thursday adjourned the 
hearing of Hubco-Wapda case for a month to allow the two sides to 
settle their dispute through negotiations.

The court adjourned the case till Jan 17, in the light of a 
statement by Chief Executive Gen Pervez Musharraf that he had given 
one month for resolving the dispute.

Chief Justice Saiduzzaman Siddiqui observed he would not like to 
hear the case as the chief executive of Hubco, Syed Khurshid 
Hussain, was personally known to him.

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991214
-------------------------------------------------------------------
Economics reform package: Money laundering scheme on agenda
-------------------------------------------------------------------
Ansar Abbasi

ISLAMABAD, Dec 13: The military government has decided to introduce 
a money laundering scheme on December 15 by offering amnesty to 
holders of black money in the country, it is learnt.

Reliable sources told Dawn the announcement was expected to be a 
part of the chief executive's much awaited Dec 15 speech on the 
economic reform package prepared by the finance ministry and 
approved by the last joint session of the national security council 
and the cabinet.

Under the scheme, the people will be given a deadline by which time 
they would be asked to bring out in the open their undeclared 
assets. Those who will avail the opportunity will be allowed to 
launder their black assets at a price.

The people at large will be given three to six months to take 
advantage of the scheme with a warning that after the expiry of the 
deadline their undeclared assets would be impounded by the 
government. All the declared money under the scheme, on the other 
hand, will stand laundered.

The authorities believe that the total volume of black/undeclared 
economy was in the vicinity of Rs1500bn and the scheme will widen 
the tax-net.

A similar scheme was introduced in India during the government of 
Prime Minister I K Gujral and it had met with tremendous success, 
the sources said.

In Pakistan, it had become a routine practice to offer such amnesty 
schemes by governments from time to time since it was first 
introduced soon after the first military take over in 1958. In 
early 1980s, however, the then finance minister Ghulam Ishaq Khan 
refused to grant such amnesties any more to black money holders on 
the grounds that the practice only encourage the dishonest and 
served as a disincentives for honest tax payers.

The last such amnesty was offered in 1985 when the late Dr Mehbubul 
Haq became Pakistan's finance minister in the first Junejo 
government under which holders of black assets were offered medium 

term black bonds at a discount. The former prime minister, Nawaz 
Sharif who was then chief minister of Punjab had publicly admitted 
to having bought black bonds worth millions to whiten his family's 
black assets under the scheme.

The 1999 economic reform package, already approved by the 
government, reportedly contains about 150 reform clauses but the 
chief executive's Dec 15 speech will cover only the main features.

The package, the sources said, includes proposal to club the 
agricultural and non-agricultural assets for wealth tax purposes. 
Presently the two are treated separately for wealth tax purposes. 

Pakistan is perhaps one of the few countries in the world where 
wealth tax is collected. In most civilised countries taxes are 
collected on incomes and property only and not on wealth. Wealth 
tax reportedly serves as a disincentive against savings and 
encourages rich people in Pakistan to stash away their savings out 
of the country. 

Another major announcement that is expected to be made by the chief 
executive on December 15 concerns reduction in the bank interest 
rate. It has already been decided to reduce the interest rate by 2 
per cent to rationalize the input costs in agriculture, 
manufacturing and services. The current domestic rate of inflation 
which is said to have come down to almost 3-4% lately is said to 
have provided an elbow room for cutting bank interest rate.

The imposition of general sales tax at retail level is likely to be 
delayed. It has, however, been decided to conduct a survey to 
ascertain the annual turnover of the retailers. Small retailers, 
who make no more than Rs 50million annually will be kept out of the 
GST net when it is finally applied.

Back to the top
=================================================================== 
 EDITORIALS & FEATURES
991217
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A speech best left undelivered 
-------------------------------------------------------------------
Ayaz Amir

MILITARY writing, as taught in the academies, puts great store by 
precision. In the issuance of military orders there is, ideally, no 
place for waffle. The address to the nation by General Pervez 
Musharraf on Wednesday evening was not a military order. But since 
it was being delivered by a military man the amount of unrelieved 
tedium in it was regrettable, to say the least. It was a speech 
which should not have been made.

It had me struggling with drowsiness in the first 15 minutes but 
since as a journalist (what things must be borne in this trade) I 
had to see it through to the end, I had to keep my eyes open but 
not without violence to my body clock. By the end of the General's 
Phillipic, sleep had fled and for the rest of the night I was left 
tossing fitfully in bed, dreaming intermittently of the various 
circles of hell and suitable punishment for bad speech writers.
 
Unless a ruler is deliberately waging war on his own countrymen, 
and therefore deliberately keeping them in a state of confusion (a 
view of conflict to which General Zia was partial), there are two 

things he must not do: (1)even if he has no respect for the masses, 
which most rulers do not, he must not appear to insult the 
intelligence of his countrymen and, (2)unlike the emperor in the 
fable, he must not show himself before the people without his 
clothes. Unfortunately for the general, on this occasion he was 
guilty on both counts.

Because the speech had been hyped up in advance by the general's 
maladroit media managers and the finance minister (who has much to 
answer for in this connection), and in the event there was nothing 
in it, people were bound to feel cheated. The mandarin who came up 
with the description that the Chief Executive(CE), would be 
unfurling a 'people-friendly' economic package certainly deserves a 
prize for silliness if not a public whipping. Raising public hopes 
unnecessarily and then dashing them to the ground is not very smart 
politics. But then who cares?

Anyway, is the common Pakistani concerned about the sanctity of 
trademarks and intellectual property rights, two of the items the 
CE touched? If from the drab forest of verbiage laid before the 
nation's expectant eyes all that had to emerge was the imposition 
of GST and agricultural tax and a Rs 100 raise to low-grade 
government employees, this task could well have been left to the 
finance minister. People can put up with a lot but, if they have a 
choice in the matter, they do not like being treated like morons.

But if the general's potent sleeping pill did nothing else (apart, 
of course, from spreading its drowsy effects) it did end up 
exposing his government's vulnerability: that it has no tricks up 
its sleeve, no rabbits to pull out of its hat. A string of pious 
homilies, a stream of good intentions, exclusive reliance on the 
future tense (the only tense Pakistani rulers are comfortable 
with), and, in the end, thick references to Islam, the last resort 
of all Pakistani leaders when they run out of ideas or are 
otherwise stumped for answers.

In other words, what the general's speech seemed to confirm was the 
most serious charge yet laid against his regime: that born in the 
darkness of the night it still does not have a sense of direction.

To shake off this charge the regime by now should have moved beyond 
the realm of stern resolve and good intentions. But in not doing 
so, and instead getting mired in routine problems, it is only 
advertising the poverty of its intellectual armour. Governance, 
administrative reform, recasting the police force, examining the 
criminal justice system, drawing the outlines of a new structure 
for local bodies, something about which the Chief Executive has 
waxed eloquent: in all these spheres there is heavy use of the 
future tense but no policy measures.

Does it take an eternity to size up with these problems? A lot of 
work on them, here and there, has already been done. But everyone 
in Pakistan is interested in the short-fix, not with basics. So 
what we have instead, almost as if to submerge other noises, is the 
loud beating of the drums of accountability. Even these have fallen 
silent after the initial storm and fury over the first batch of 
sacrificial victims. It is reflective of this state of affairs that 
the CE himself has been reduced to proffering excuses, as he did in 
his speech, for the slow pace of accountability.

Increasingly, as was evident from day one, the regime's energies 
are being consumed in the effort to make the charges against Nawaz 
Sharif and the pathetic knights of his round table stick. Soon 
there will be constitutional petitions to argue and defend in the 
Supreme Court. Soon the spectre of legitimacy will loom ever larger 
before the military government. As the bureaucracy, on whom every 
military government relies, becomes ever more aloof and arrogant, 
the people will be left wondering as to what all the fuss was 
about. Nawaz Sharif's follies will then look less imposing than 
perhaps they do at present.

Already he is saying (when let out on parole for his mother-in-
law's death) that he would continue with his mission if Allah 
permitted him to do so. God forbid this should happen. Pakistan, 
with its proven capacity for suffering all manner of injuries, can 
put up with most things but not a continuation of Nawaz Sharif's 
mission.

But to continue with our tale, for all the talk of coming to the 
rescue of the poor and deprived sections of society, the brunt of 
military reformism so far has fallen on the weakest shoulders. In 
Chakwal the ground next to the municipal committee office is full 
of confiscated rehris (handcarts) while the Chappar Bazaar, home to 
three generations of rehri-wallas, has been cleared in the name of 
removing encroachments. Too many handcarts of course are not a 
pretty sight. But with life tough and unemployment being the way it 
is, where are these wretched souls expected to go?

Are we not familiar with one of the foremost effects of the 
impoverishment of Russia? The flooding of the great flesh centres 
of the world with the choicest specimens of Russian womanhood. As 
the impoverishment of the Pakistani masses, under the gauntlet of 
the IMF and the World Bank, proceeds apace, do we want to see 
similar phenomena spreading their tentacles across our land?

It is not a question of democracy here. Democracy as seen and 
practised in this neck of the woods might happily be thrown into 
the waters of the Arabian Sea for all the difference it would make. 
There is nothing more comical or infuriating (take your pick) than 
a typical Pakistani politico vowing to reform the world. But the 
trouble is that worse than the established chicanery and mendacity 
of the politico is the smugness and pomposity of the standard 
Pakistani bureaucrat and the obtuseness of the military mind. This 
and no other is the clinching argument in favour of the tattered 
robes of democracy: that the alternatives on offer are infinitely 
worse.

True, in the Pakistani psyche there is a lurking fascination for 
Stalinist methods in politics. Talk to a normal Pakistani and his 
prescriptions for cleansing the body-politic will be quite 
bloodcurdling. But as we know, the army is a conservative 
institution with neither the vision nor the training to carry out 
any scheme of fundamental reform. Whenever it seizes power it will 
virtually repeat, with minor variations of course, the pattern of 
military interventions past. This can be taken almost as an iron 
rule of its behaviour in the civilian sphere. No wonder, General 
Musharraf's regime is proving no exception to this trend. Despite 
all the talk of fashioning a brave new world, it too is sticking 
faithfully to the old script reminiscent so strongly of the 
powerful stage appearances of Ayub, Yahya and Zia.

We need a break from this but any thought of an exit, at least at 
this point, seems to be the last thing on the regime's mind. This 
is bad news, for keeping the experience of the past in front of us, 
it can safely be assumed that things are likely to get much worse 
before they get any better. Can we afford this fatal drift? The 
answer would seem to be no but then who is listening?

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991218
-------------------------------------------------------------------
Reality check 
-------------------------------------------------------------------
Irfan Husain

THE current issue of 'The Economist' quotes a Western diplomat as 
saying there is a "whiff of uncertainty in Islamabad" over what the 
present government is doing - or rather, not doing.

There is similar concern being increasingly voiced in columns in 
national dailies. Apparently, there is growing unease over the 
glacial pace at which the military regime is moving. Many 
Pakistanis who expected a blitzkrieg to be launched on October 12 
are understandably disappointed. Those who gleefully talked about 
building new cells in our jails to accommodate Pakistan's army of 
defaulters are now very despondent, as are those who saw the new 
dispensation ushering in a brave new world.

Surely these people should have known better. If General Zia could 
not get taxi drivers to fix their meters in his seemingly unending 
tenure, it seems a bit much to expect his successor to put the 
whole country right in two months. An old friend, now a senior 
member of the Army XI, said recently: "Yar, give us some time!" 
Since I had no expectations at all, I am not in the least bit 
disappointed. But there is no doubt that many people with short 
memories of the past performance of the military on and off the 
battlefield are quite dejected. They forget that the world over 
military is a defender of the status quo.

Expecting the army to put our house in order is a bit like 
expecting a guard who has evicted the landlord to pay attention to 
the condition of the garden and the poor state of repair of the 
property. Granted that the landlord was too crooked and 
shortsighted to put things right; the fact remains that the guard 
has neither the means nor the competence to undertake the task of 
refurbishing the house.

As it is, the country is at a virtual standstill. Since the Chief 
Executive has still not given us any kind of timeframe or 
blueprint, we are unclear as to what he proposes to do. The problem 
is that so is he. True, he did give us a wish list in the form of 
his seven-point agenda, but that was more a noble declaration of 
intent than a clear plan of action. Nationalized banks may have got 
back a few billions of their outstanding loans and a score or so of 
defaulters are languishing in jail. And that, apart from its 
avowals of good intentions, is about the sum total of what this 
government has achieved in two months.

Another friend pointed out that some of the ministerial 
appointments made by the junta would never have been made by a 
political government. This is true. Outstanding people like Omar 
Asghar Khan are very rarely offered ministerial positions. But 
unfortunately, the problems Pakistan faces are of such a magnitude 
that a change of personnel at the top is not enough: steel in the 
spine and a fire in the belly are required to make a difference, 
and so far, we have seen no evidence of either.

In management theory, there is something called 'administration by 
earthquake' in which a newly appointed chief executive takes 
drastic action and makes radical personnel changes at every level. 
The idea is to shake up the organization and get everybody on his 
toes. This kind of managerial terrorism is also designed to send a 
clear message that there is a new man at the top, and that old 
loyalties and previous performance no longer count for anything. To 
do well under the new dispensation, everybody has to prove himself 
anew.

None of this has happened since October 12. Apart from the 
dismissal of Nawaz Sharif's cabinet and the shuffling of a few 
secretaries, it is pretty much business as usual. Most of the ex-
PM's handpicked ambassadors and corporate heads are still in place 
and doing very well, thank you very much. The federal and 
provincial governments are frozen into inaction, not that they were 
breaking any records for speed and efficiency before.

General Musharraf has often voiced his support for the notion of 
devolution of power. Contrary to this laudable sentiment, 
provincial governments have been told that ordinances issued by ex-
governors now have to be sent to Islamabad for the Chief 
Executive's approval before they can be renewed. Some public sector 
organizations like the Export Promotion Bureau are coasting along 
without anybody being named to replace the sacked chairman.

Sooner or later it will sink in that getting the country moving 
again takes more than rhetoric and hot air. Had it been this 
simple, we would now have been at the top of the economic league 
instead of languishing at the very bottom. No amount of good 
intentions or reform packages will get the economy moving again 
until investor confidence has been restored. The thousands of 
factories that are shut will not reopen until their owners have 
working capital. But with interest rates at around 20 per cent, 
very few businessmen are willing to take loans in such a depressed 
market.

One problem is that the very people who are capable of reviving the 
economy are currently under great pressure as a result of the 
accountability drive. Sadly, the industrialists whose names grace 
the list of defaulters and who are today on the exit control list 
are some of our biggest employers and who have in the past been at 
the forefront of industrialization. Whether we like it or not, 
entrepreneurship is a rare commodity that needs to be nurtured in 
backward countries like ours. Although many of our top businessmen 
are robber barons, we need to acknowledge that without them, we 
would not even have been where we are in terms of industry and 
finance. It may go against the grain, but the fact remains that we 
need to put things in perspective in our zeal to clean up the 
Augean stables of our credit system.

However, the army mind tends to see things in black and white, 
ignoring the shades of gray in between. Over the years, the 
Pakistani military has developed an unhealthy contempt for 
politicians in particular and civilian institutions in general, 
comparing them both with the discipline and relative efficiency 
prevailing within its insulated confines. They forget that 
politicians and planners cope with far more complex problems than 
army commanders are asked to deal with, and that a country like 
Pakistan is much harder to govern than the army. No doubt General 
Musharraf is now in the process of absorbing this lesson.

In his recent address to the nation, he asked for more time. Sorry, 
general, that is the one commodity we are very short of.


===================================================================
SPORTS
991214
-------------------------------------------------------------------
ACB to discuss sledging issue with PCB
-------------------------------------------------------------------

ADELAIDE, Dec 13: The Australian Cricket Board (ACB) is seeking 
urgent talks with their Pakistan counterparts to discuss 
allegations of excessive sledging by Australian players during 
their recent three Test series.

The ACB is upset at the allegations, made in a Pakistan newspaper 
last week, even though the Pakistan Cricket Board (PCB) has not 
made any official complaints.

Reports from Pakistan over the weekend said PCB chairman Zafar 
Altaf had written to the ACB wanting assurances that "further 
unfair play would not be tolerated".

He said Pakistan players were subjected to "vicious sledging" and 
singled out Ricky Ponting as the worst offender.

ACB chief executive Malcolm Speed said on Monday he would not 
comment on the contents of the PCB letter until he had seen it, but 
did say he wanted to speak with Altaf when he returns to Australia 
for next month's triangular limited-overs tournament.-Reuters/AFP

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991215
-------------------------------------------------------------------
Tauqir Zia named new PCB ad hoc body chief
-------------------------------------------------------------------
Farhana Ayaz

ISLAMABAD, Dec 14: Lieutenant General Tauqir Zia, the Corps 
Commander, Mangla, has replaced Dr Zafar Altaf, the Federal 
Secretary Food and Agriculture, as chairman of the Pakistan Cricket 
Board adhoc committee according to a notification issued by the 
Ministry of Sports here on Tuesday morning.

Sources said a number of complaints were received about the way 
cricket affairs were being managed.

Syed Zafar Naqvi, additional secretary, Ministry of Sports, told 
Dawn that according to the notification, the members of the ad hoc 
committee have also been shown the door.

He said Lt-Gen Tauqir Zia has been empowered to appoint his own 
secretary and induct three to four members in his ad hoc committee.

The Sports Ministry on Tuesday also issued a separate notification 
for termination of ad hoc committee member Javed Zaman with 
immediate effect. Javed Zaman was appointed by Mujeebur Rehman. 
Prior to the notification, the ADC to Lt-Gen. Tauqir Zia also held 
meetings with Federal Secretary Sports, and Additional Joint 
Secretary Sports.

Sources close to the new ad hoc committee chairman said that the 
core group for cricket administration will be appointed within a 
week or so.

But prior to bringing new faces in the administration, certain 
changes in the Australia-bound Pakistan team will be made, sources 
close to the new chairman said.

"A couple of changes in the present Pakistan team will be taken as 
the first task," the source confirmed on Tuesday evening.

Sources disclosed that either someone will be dropped from the 14-
member team or left-handed opener Aamir Sohail will be added as the 
15th player. The decision regarding this will be taken within a 
couple of days, it was learnt.

Moreover, amongst others immediate removalof PCB secretary Shafqat 
Rana and ACC secretary Zakir Hussain Syed will also be taken, it 
was stated. It was learnt that the new chairman would hold 
consultation process before formation of a core group. 

The new chairman will be in Lahore on Wednesday where he is 
scheduled to hold various meetings besides watching the players in 
action during the training camp.

Lt-Gen Tauqir Zia is known as a strict disciplinarian. He has the 
Army colours in squash and tennis, besides being a fine player in 
golf and polo. He has led the GHQ cricket team as an all-rounder.

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991217 
-------------------------------------------------------------------
Intikhab appointed coach for Australian tour
-------------------------------------------------------------------
Reporter

KARACHI, Dec 16: Former Test captain Intikhab Alam became the fifth 
Pakistan coach this year - and fourth in six months - when he was 
appointed for the second half of the Australian tour.

In the second leg, Pakistan will participate in the tri-nation one-
day series also involving India and Australia. The series begins on 
Jan 9.

Intikhab replaces South African Richard Pybus who was sacked 
immediately after Pakistan's 3-0 defeat in the three-Test series 
earlier this month.

Before him, Javed Miandad had resigned on the eve of the World Cup 
which forced the PCB to appoint Mushtaq Mohammad for the England 
event. Wasim Raja replaced Mushtaq but could last for only two 
tournaments in Toronto and Sharjah before he quit.

"Intikhab is also a ICC match referee. If he has no immediate 
assignments, his contract may be extended until the end of the 
season," Rana said from Lahore on telephone.

After the Pakistan team returns from Australia, it will host Sri 
Lanka for three Tests and an equal number of One-day 
Internationals. Pakistan then fly to the West Indies for three 
Tests and a three-nation series. Pakistan's next visit will be to 
Sharjah for another triangular event to be followed the Asia Cup in 
Dhaka (Bangladesh) and then a return trip to Sri Lanka for three 
Tests.

The ICC has assigned Intikhab to officiate two one-dayers between 
England and South Africa in February next year. He is also the 
match referee for four one-dayers between England and Zimbabwe in 
Zimbabwe to be played in March.

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991214
-------------------------------------------------------------------
Waqar criticizes Wasim's captaincy
-------------------------------------------------------------------
Correspondent

LAHORE, Dec 13: Speedster Waqar Younis said here on Mondaythat 
Pakistan could have won the second Test against Australiaat Hobart 
if the bowlers had bowled properly and with a will to win.

Speaking at "Meet the Press" programme at the Lahore Press Club, 
Waqar said that a high-class battery of Pakistani pacemen, 
comprising Wasim, Shoaib Akhtar and himself (Waqar), was quite 
competent to get out the remaining batsmen and level the series (1-
1). 

However, the Pakistani bowlers did not display killing instinct to 
capture the last five wickets. For that reason, the Pakistan team 
went down also lost the third Test and the series by 0-3. About 
himself Waqar said that the captain did not give him enough 
opportunity to have a go at the remaining batsmen. 

 "The captain gave me only one big spell of five overs. Otherwise, 
I was sparingly given the bowling for stints of two to three overs 
only. And in the first spell I took two wickets", Waqar said.

Waqar alleged that Wasim Akram had been instructing him to stop the 
flow of runs during that Test at a time when wickets were needed. 
He said that Wasim Akram could be a good captain if he resolved to 
fight in the matches.

Waqar blamed his former new-ball partner, captain Wasim, of 
victimising him during the last 18 months. "Perhaps, a revolt 
against his (Wasim's) captaincy in 1993 along with other players 
was the reason for meeting out such treatment to me", apprehended 
Waqar.
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