------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 22 Ap;ril 2000 Issue : 06/17 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Plane case: Prosecution takes back applications + Nawaz's appeal admitted for hearing + Nawaz appeal hearing + PML split around the corner + Contact with other parties to continue, says PML + GDA, PML stick to their stands + Nawaz fears economic collapse + India has no right to United Nation Council seat: adviser + PML blasts govt for not honoring C'wealth demand + C'wealth's condition for seat + Samjhota Express to run up to Wagha + India to deploy spy planes on LoC + India pondering attack, warns Qayyum + Ban on political activities to go soon: Musharraf + NAB aims to bring back looted money, says official + Citizenship Law amended + Passengers to NY, London will fly to Karachi first + Deweaponization to curb terrorism, says minister + Nusrat's condition stable + ICC tribunal not qualified to arbitrate: WAPDA + WAPDA wants original debt-equity ratio restored + HUBCO earned profit illegally: WAPDA counsel + Usman's appeal admitted for hearing + SHC restrains Asif's shifting + Wattoo's plea referred to CJ + Nawab Marri's bail plea rejected + Local Taliban warned against meddling + Attack on Iranian leader: Suspect escaped to Pakistan + Action against religious schools ruled out + NGOs need no clearance from Intelligence Bureau --------------------------------- BUSINESS & ECONOMY + Forex rules to be changed to attract investment + Fresh FCY deposits: Ban on foreign placement may go + IMF wants sample, not mass tax survey + IMF 'pleased' with new reform package: official + No fake budget figures in future: Shaukat + Debt rescheduling: G-77 backs Pakistan proposals + Software technology parks for three cities + Move to abolish wealth tax: CBR taps alternate sources of revenue + Stocks pass through lean session --------------------------------------- EDITORIALS & FEATURES + The credit side and a hearing problem Ayaz Amir + Dispute resolution outside the court system Nasir Aslam Zahid + Timeframe & voting system M.H. Askari ----------- SPORTS + Pakistan defeat West Indies in first final + West Indies score 17-run victory over Pakistan + Pakistan beat Zimbabwe

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NATIONAL NEWS
20000420
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Plane case: Prosecution takes back applications
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KARACHI, April 19: The prosecution in the plane-hijacking took back 
its urgent applications from the roster of the Sindh High Court, 
saying it had no urgency to proceed with the appeals.

The prosecution has filed two separate appeals in the High Court 
praying to convert the life imprisonment of Nawaz Sharif into death 
sentence and against the acquittal of the other six accused in the 
case. The advocate-general had also filed urgent applications with 
the appeals for fixing immediate hearing of these before the bench.

When reporters contacted the roster branch of the High Court, they 
were informed that the prosecution had taken back the urgent 
applications and now these appeals would be fixed according to the 
roster. -PPI

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20000419
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Nawaz's appeal admitted for hearing
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Staff Reporter

KARACHI, April 18: The Sindh High Court admitted for regular 
hearing an appeal by former prime minister Nawaz Sharif challenging 
his conviction in the plane conspiracy case. No date has been fixed 
for the hearing of the appeal.

Defence counsel Azizullah Sheikh submitted before the division 
bench, comprising Justice Abdul Hameed Dogar and Justice S.A. 
Rabbani, that while reading the impugned judgment of the ATC-1 
judge, he found four more grounds in addition to the grounds he had 
mentioned in the appeal.

As the defence counsel was continuing his arguments to seek 
admission of his appeal, the bench asked the counsel to confine his 
arguments to the grounds already mentioned in the appeal and the 
new points could be discussed by him during the hearing of the 
appeal.

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20000418
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Nawaz appeal hearing
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Staff Reporter

KARACHI, April 17: The prosecution has filed an appeal against the 
acquittal of six persons in the plane conspiracy case.

Sindh Advocate General Raja Qureshi told Dawn that the prosecution 
had decided to file the appeal in the high court against the 
acquittal of Shahbaz Sharif, Syed Ghous Ali Shah, Shahid Khaqan 
Abbasi, Saeed Mehdi and Rana Maqbool "positively". He said that a 
separate petition seeking the enhancement in the sentence awarded 
to Nawaz Sharif had also been prepared. "As far as the filing of 
the appeal against the lesser sentence awarded to Nawaz Sharif is 
concerned, a decision would only be taken on Tuesday morning by the 
prosecution team, led by Barrister Zahoorul Haq," the AG said.

When asked about the contents of the petition challenging the ATC 
verdict, the AG said he could not divulge anything about the 
petition until it was filed in the court.

Azizullah Sheikh, leading defence counsel, when contacted, said he 
would argue on the grounds he had raised in his petition 
challenging the conviction of former Prime Minister on charges of 
hijacking and terrorism.

In 31-point grounds raised for the acquittal of Nawaz Sharif in the 
petition, he said he had stated that the trial judge had not read 
the evidence of the witnesses as a whole while recording the 
convictions of the appellant. The ATC judge while passing the 
impugned verdict derogated from the well-entrenched principles of 
safe administration of justice.

He said he had requested to the Sindh governor and later the 
advocate general that he required satisfactory security 
arrangements during the pendency of the appeal. He added that he 
made such a request on the advice of his client (Nawaz Sharif).

Both the governor and the AG had assured him that he would be 
provided with security, he said and added that he had taken that 
step "out of abandon caution."

He said he had held a meeting with the Sindh High Court Chief 
Justice who had told him that public was allowed to come in the 
courtroom to witness proceedings. He added that the chief justice 
had said that it should be in a disciplined manner, adding that 
nobody was allowed to raise slogans inside the courtroom or in the 
precincts of the court building and that they were free to 
demonstrate outside the compound. Two separate benches have been 
reserved for foreign correspondents and diplomats, he added.

It is learnt that Nawaz Sharif has also signed Vikalat Namas of 
advocates Khawaja Sultan and Ejaz Batalvi at the Central Prison, 
Karachi, and they would also appear before the appellate bench.

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20000420
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PML split around the corner
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By Faraz Hashmi

ISLAMABAD, April 19: A split in the Pakistan Muslim League is just 
around the corner as the Sharif family has frustrated all attempts 
by the anti-Nawaz group within the party to have Nawaz Sharif 
replaced as party president, insiders told Dawn.

A sizable group of Muslim League members has already rallied around 
Mian Azhar and Begum Abida Hussain, two of the five suspended MNAs 
who had developed differences with Nawaz Sharif even before the Oct 
12 coup over his style of governance.

At the recent PML meeting held in the federal capital the anti-
Nawaz members were not allowed to express their views, frustrating 
what this group calls its last attempts to save the party from the 
looming split by replacing Nawaz Sharif with a consensus candidate 
as party chief.

When asked why then the group has not yet announced its exit from 
the PML or has not so far formed a new party. The source said the 
group was now engaged in winning over as many members of the party 
as possible to its side and as soon as it succeeds in achieving the 
right numbers the needful would done. Besides, the group seems to 
be a bit apprehensive about splitting as it was not certain how the 
people would greet such a move when the fate of Mr Sharif was yet 
to be decided by court. Also, the group does not want to commit the 
same mistake as Ghulam Mustafa Jatoi had done when he left the PPP 
at the wrong time. They are seemingly waiting for the most 
opportune moment for making the move.

"We know we are right and have no qualms about leaving the party 
but it is always good politics to choose the right time before 
making an important political move like leaving a party or forming 
a new party," said the source.

According to the source, the decision to pass on the mantle of PML 
president-ship to Begum Kulsoom Nawaz was taken, in principle, by a 
coterie of elders at a meeting recently held in Lahore. 
Notwithstanding the repeated and firm denials by Begum Kulsoom that 
she does not want any office in the party, her elders have already 
directed her to prepare herself for carrying the party scepter in 
the absence of her husband who these elders are now certain would 
be out of circulation for at least another 10 years.

After losing power and sustaining serious damage to the family 
business, the source said, the Sharif family was still not prepared 
to give up the party leadership. It had decided to fight back, with 
full might, all the pressure building up within the party for a 
change in the party leadership.

The elders had reportedly asked Begum Kulsoom to establish contacts 
with the Muslim Leaguers who were not happy with the policies of 
Nawaz Sharif and who were now openly demanding immediate change of 
the party president, a source said. Acting on the advice of elders, 
Begum Kulsoom had extended an invitation last week to a member of 
the anti-Nawaz group to meet her at her Model Town residence.

The way Begum Kulsoom managed to thwart attempts of the anti-Nawaz 
group to get a new president elected at a joint meeting at 
Islamabad of the central working committee and the PML 
parliamentary group is being regarded by the loyalists of Nawaz 
Sharif as her first political achievement, the source said.

He said the impression that the Sharif family and a group of Nawaz 
loyalists had made elaborate plans to scuttle any move to replace 
the party president at the meeting was wrong. "What actually 
happened was that Chaudhry Shujaat Hussain, who is a very 
influential Leaguer in Punjab and who thinks that the time was not 
yet ripe to replace Nawaz Sharif had at the last minute put all his 
political weight behind Kulsoom," he added.

The PML rebels had conditionally attended the joint meeting held in 
the capital last week. Raja Zafarul Haq had assured them at the 
residence of Begum Abida Hussain, where they had gathered before 
the meeting, that the meeting would be conducted in a democratic 
manner and everybody would be allowed to speak, the source said. 
Later when they were not given a proper opportunity to speak at the 
meeting, they left, one by one, halfway through the meeting.

The party insiders were of the view that the idea to bring the 
former first lady into politics was not an incident of recent 
occurrence. It had been going on in the mind of the Sharif family 
since 1993 when the PML was in opposition. The source recalled that 
when Nawaz Sharif was asked by a party member during his train 
march in 1994 who would head the party if he was arrested or 
eliminated from politics, his spontaneous reply was: "Kulsoom, who 
else."

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20000416
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Contact with other parties to continue, says PML
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ISLAMABAD, April 15: Pakistan Muslim League decided to continue the 
process of establishing contacts with other political parties, 
including PPP, for the restoration of democracy. The PML central 
coordination committee convener, Raja Zafrul Haq, told PPI this 
after his meeting with the speaker of the suspended National 
Assembly, Illahi Bukhsh Somroo, and former federal minister Lt-Gen 
(retd) Majid Malik here Saturday.

He dismissed the impression that the process, initiated by the PML, 
to establish contact with other democratic forces, was suspended, 
adding "we are in contact with the other parties and keep contact 
with them in the future." -PPI

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20000421  
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GDA, PML stick to their stands
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By Ashraf Mumtaz

LAHORE, April 20: The GDA and the PML stuck to their respective 
stands on the key issue of "the restoration of democracy" as a 
three-member delegation held the first round of talks with 
Nawabzada Nasrullah Khan.

The objective of the talks was to see if the two sides could join 
hands for the revival of the political process. The negotiators 
told reporters after their 90-minute meeting that they agreed on 
the need for the revival of democracy but they had their own points 
of view on the subject.

Neither side expressed the desire for an alliance and no discussion 
was held on the possibility of launching agitation against the 
government. The major reason for keeping the two issues out of the 
agenda was that the PML had reportedly not given its delegation a 
clear mandate.

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20000421  
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Nawaz fears economic collapse
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Staff Reporter

KARACHI, April 20: Deposed prime minister Nawaz Sharif said that 
under the present government Pakistan had miserably failed on both 
the diplomatic and economic fronts. In a statement, signed by one 
of his counsel, Khawaja Naveed, Nawaz Sharif stated that the issue 
of India becoming a permanent member of Security Council was yet 
another diplomatic success of India, which clearly indicated that 
Pakistan would be further isolated in the international community.

Till October 1999, no country was willing to support India to make 
it a permanent member of the Security Council. "But, things have 
dramatically changed after Oct 12 because during these days no 
civilized country approves military governments, which the present 
rulers failed to understand and accept".

He said the situation on the borders was alarming whereas the 
military government was hounding the politicians and businessmen 
and their families. He also said prices were sky-rocketing. Petrol 
price had been increased twice in last six months. Railway and 
transport fares were up by 40 percent and unemployment was on the 
rise.

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20000421  
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India has no right to United Nation Council seat: adviser
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Staff Correspondent

NEW YORK, April 20: The adviser to the chief executive on 
information, Javed Jabbar, said in an interview with CNN that if 
India was given a permanent seat in the United Nations Security 
Council now "it would be a body-blow to the credibility and 
structure" of the world body.

"A country which has blatantly violated UN security Council's 
resolutions has no moral, diplomatic or political right to such a 
seat," said Mr Jabbar. However, he said: "If India agrees to honor 
the resolutions for a negotiated settlement of the Kashmir issue, 
then the issue (of the UN seat) may be discussed."

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20000418
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PML blasts govt for not honoring C'wealth demand
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Staff Correspondent

ISLAMABAD, April 17: Pakistan Muslim League (PML-N) has said that 
the military government's refusal to Commonwealth and other 
European countries' demand for restoration of democracy and 
abolition of the "state-influenced" conviction of the deposed Prime 
Minister, Nawaz Sharif, in the plane conspiracy case has isolated 
the country.

A PML spokesman said that the visit of Turkish Prime Minister 
Bulent Ecevit to India, ignoring Pakistan, and the fruitless visits 
of Gen Pervez Musharraf to Indonesia, Malaysia, Singapore and other 
countries and their refusal to accept the military government, was 
enough warning to the junta to immediately restore democracy and go 
back to the barracks.

The spokesman said that at the domestic front too, the junta had 
failed to provide security to the life, honor and property of the 
people. He added that inflated bills of electricity, gas and water 
and increase in the prices of fuel and edibles had added to the 
difficulties of the people, which were tarnishing the image of the 
armed forces in the public eyes. He said that instead of providing 
economic relief to the people the government was staging the drama 
of local body’s elections, which had got nothing to do with the 
people's problems.

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20000419
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C'wealth's condition for seat
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NEW DELHI, April 18: Pakistan cannot return to the Commonwealth 
until its military regime offers guarantees on the restoration of 
democracy, Commonwealth chief Donald C. McKinnon said in an 
interview with Indian state-owned Doordarshan television network.

"We want to ensure that the Pakistani regime understands they 
cannot come back to Commonwealth until they make absolutely clear 
that elections are going to be held on such and such date and 
normally," McKinnon said.

C'wealth chief McKinnon, who took up his post barely two weeks ago, 
said in the interview: "We hope that Pakistani people will keep the 
pressure on the military regime to announce the election date."

He said the Commonwealth group of ministers would meet in May to 
review the latest situation in Pakistan. "This group, which will 
also review the political situation in Pakistan, may even suggest 
stronger measures against the military regime," the Commonwealth 
secretary-general said without elaborating.

To a question on whether the group of ministers would recommend 
suspension of Pakistan from the Commonwealth, McKinnon said: "It is 
entirely up to the ministers to decide and not the secretary-
general."He said it was still undecided whether the group would 
visit Islamabad or invite representatives from the military regime 
to London.-AFP

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20000421 
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Samjhota Express to run up to Wagha
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NEW DELHI, April 20: India's Northern Railway announced a revised 
schedule for the Samjhota Express which will run between Attari and 
Wagha stations on Mondays and Thursdays. The train, with a 
composition of eight general second-class coaches and two luggage-
cum-brake vans, will leave the Attari Station at 1230 hours and 
reach Wagha station at 1245 hours.

On its return journey, it will leave Wagha station at 1330 hours 
and reach Attari station at 1355 hours, a Northern Railway press 
release said here. It said the revised schedule will come into 
effect from Thursday. Under an agreement reached between the 
railway authorities of the two countries last week, India had 
agreed to run the Samjhota Express train upto Wagha checkpoint in 
Pakistan, rather than up to Attari in India. -NNI

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20000421 
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India to deploy spy planes on LoC
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NEW DELHI, April 20: India is planning to buy aerial surveillance 
vehicles from Israel to boost defences along its border with 
Pakistan, Defence Minister George Fernandes said. In a written 
reply to a question in lower house of parliament, Fernandes said he 
was unable to disclose details of the unmanned air vehicles (UAVs) 
for "reasons of national security."

Fernandes reiterated that recent intelligence reports had revealed 
a large concentration of Mujahideen massing on the Pakistan-side of 
the LoC. "Reports also indicate that Pakistan has been in the 
process of procuring special clothing and equipment over and above 
its normal requirements," he alleged.-Agencies

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20000416
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India pondering attack, warns Qayyum
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MIRPUR, April 15: Former AJK premier Sardar Abdul Qayyum has said 
that India was preparing to launch a forceful attack on Azad 
Kashmir any time in the near future. Talking to APP Sardar Abdul 
Qayyum Khan referred to the recent unequivocal threatening 
statement of the Indian army chief about limited war by India in 
the region. "Such statement of the Indian army chief reflects the 
open aggressive designs of India against Pakistan and Azad 
Kashmir," he said.

He said "we shall have to remain alert and vigilant every moment of 
the threats of aggression given by the chief of the Indian army 
staff." Sardar Qayyum also criticized the policies of the AJK 
government.-APP

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20000422 

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Ban on political activities to go soon: Musharraf
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By Faraz Hashmi

ISLAMABAD, April 21: Chief Executive Gen Pervez Musharraf said that 
the ban on political activities would be lifted shortly. Talking to 
reporters here after the conclusion of the national convention on 
human rights, he called the Nawaz Sharif government a "sham 
democracy". People today were enjoying more democracy than any 
previous democratic governments, he said.

"We have done much more for democracy than any government in the 
past," he said and alluded to the freedom being exercised by media. 
The government was privatizing electronic media, which, he said, 
was a "bold step". Moreover, he added, the print media was "totally 
and absolutely" independent.

"I have told them to write anything against me or my government," 
he said but added that anything written against Pakistan would 
certainly hurt him. 

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20000419
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NAB aims to bring back looted money, says official
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Bureau Report

ISLAMABAD, April 18: The National Accountability Bureau (NAB) 
announced that it was focusing its attention primarily on bringing 
back the money looted through corrupt practices and deposited in 
foreign banks, instead of bringing the looters back to the country. 
"We are more interested in bringing back the looted money that had 
found its way overseas instead of bringing back the culprits," 
Farooq Adam, the prosecutor-general of the NAB, told a news 
conference here.

"The people are also concerned about the money," he said. "The 
United States, Britain and Canada can keep these people (alleged 
plunderers of national wealth) with them, we are only interested in 
the money," he added.

Referring to the NAB chairman's recent tour to the UK and other 
European countries, he said the bureau was in the process of 
acquiring the services of foreign "experts" to trace out the looted 
money and bring it back.

He disclosed that the NAB had also consulted the Interpol to get to 
know the process which a country was required to adopt in bringing 
a fugitive of justice back from another country.

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20000419
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Citizenship Law amended
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Bureau Report

ISLAMABAD, April 18: The federal government amended the citizenship 
law, providing that the children of Pakistani women married to 
foreigners would also be entitled to Pakistani citizenship.

An ordinance called Pakistan Citizenship (Amendment) Ordinance 
2000, stated that in section 5 of the Citizenship Act, for the word 
"father" wherever occurring, the word "parent" shall be 
substituted.

An official of the law ministry said that the amendment was made on 
the recommendation of the Interior Ministry and was aimed at ending 
the discrimination. It had been the demand of those Pakistani 
origin women, mostly living in Europe and the US, that their 
children from non-Pakistani husband were not entitled to the 
citizenship. But on the other hand children of those Pakistani men 
who had married foreign women were entitled to citizenship of 
Pakistan.

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20000420
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Passengers to NY, London will fly to Karachi first
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Staff Reporter

LAHORE, April 19: PIA said that it was rescheduling flights from 
Lahore to New York, London and Toronto since Lahore airport's 
runway would be closed to Boeing 747s from April 20 to June 30. The 
reason for the closure has been cited as necessary repair work.

The change will affect all passengers flying out of Lahore and they 
will have to break their journey in Karachi. The reason for this, a 
Press release said, is that they will depart Lahore on an Airbus 
and be taken to Karachi from where they will continue their journey 
in a Boeing 747.

The airline said that passengers leaving from Lahore can expect to 
spend "approximately 85 minutes" in transit at Karachi. The Press 
release said that flight PK 703 would now leave Lahore every Monday 
for New York and Toronto at 10 pm.

Flight PK 711 for New York would leave every Friday at 1.15 am (the 
night between Thursday and Friday) while PK 757 for London would 
depart every Saturday morning at 4 am.

The Press release said that all passengers would be first flown to 
Karachi in an Airbus A-300. There they will have to change planes 
and get on to a Jumbo before flying to any of the three cities. 
However, the passengers will not be inconvenienced, the airline 
said, because the boarding card issued to them in Lahore will still 
be applicable once they change planes in Karachi. The airline also 
said that all passengers leaving Lahore will have their customs and 
immigration done at Lahore airport.

PIA also said that all flights from New York, Toronto and London to 
Lahore would break in Karachi with and all Lahore-bound passengers 
being flown in an Airbus. However, their immigration and customs 
would be done at Lahore. The airline also said that it hoped all 
passengers would cooperate with these measures considering that the 
repair work on the Lahore airport runway was of a necessary nature.

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20000420
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Deweaponization to curb terrorism, says minister
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Staff Correspondent

WASHINGTON, April 19: The adviser to the chief executive on 
information and media, Javed Jabbar, said he had told the American 
officials about the government's determination to curb activities 
of extremist groups and continue on the road to restoration of 
democracy.

Addressing a press conference after visiting Los Angeles and 
Washington, Mr Jabbar said Pakistan would not allow terrorist 
groups in Afghanistan to undermine Pakistan's integrity.

Mr Jabbar, who met various US officials in Washington, including 
Assistant Secretary of State for South Asia Karl Inderfurth, said 
Pakistan's deweaponization program was specifically aimed at 
curbing terrorist groups. Conceding that many factors in the 
country - such as poverty, lack of economic progress, corruption, 
etc - were partly responsible for "invalid perceptions" regarding 
the posture of the government towards extremist groups.

He added that the process of devolution would ensure that power was 
returned to the people. Asked if the grip of the feudal lords over 
power would be sapped, Mr Jabbar said once the people at the town 
and district levels were empowered, the feudal would disappear.

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20000416
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Nusrat's condition stable
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Staff Correspondent

DUBAI, April 15: The condition of Begum Nusrat Bhutto was described 
as stable by family friends. She was taken to a private hospital 
for check up as she had complained of chest pain. She was later 
sent home.

Sources close to Bhutto family said that Begum Nusrat Bhutto's 
health had deteriorated since the death of Murtaza Bhutto who was 
killed in a shooting incident in Karachi. They said that she is 
suffering from various infections and at times fails to recognize 
people. A nurse had been permanently posted at the residence of 
Begum Nusrat Bhutto in Dubai to attend to her.

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20000422
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ICC tribunal not qualified to arbitrate: WAPDA
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Bureau Report

ISLAMABAD, April 21: The WAPDA counsel said that arbitration 
tribunal of International Chamber of Commerce (ICC) is not 
qualified to understand the subtleties of corruption culture in 
Pakistan, and the courts here should be allowed to adjudicate the 
dispute between WAPDA and HUBCO.

Fakhruddin G. Ibrahim, the counsel for WAPDA said: "Each country 
has its own wheeling and dealing system, so to say its own culture 
of corruption". He said understanding such a dispute would be 
difficult for commercial arbitrators. "They are just not equipped 
to do so. Leave it to Pakistani courts to decide these matters of 
public law and public policy issue."

The dispute raises an issue of such grave public and national 
importance and policy in Pakistan that it could not be arbitrated 
in a commercial tribunal, he added. He said that the acts of the 
sovereign states were non triable before such tribunals, and 
referred to American case law (Liamco versus Libya, US district 
Court for the District of Columbia, Jan 18, 1980) wherein the court 
held that an Act of State was non-triable in such like tribunals.

The WAPDA counsel said that each State had the right to decide by 
way of public policy or legislation what issues it considered to be 
of national importance. Corruption in high public offices was a 
matter of grave public and national importance in Pakistan, he 
maintained.

To deal with the menace of corruption in high public offices a 
series of statutes were enacted in Pakistan since 1996, e.g., the 
Ehtesab Ordinance 1996, followed by Ehtesab Act 1997, and the now 
in force National Accountability Bureau Ordinance 1999, he said. 
These enactments, he submitted, showed an intent that where issues 
of corruption in high public offices arose, the same should be 
adjudicated upon by special courts established particularly for 
that purpose.

He said that arbitrators must resolve the dispute in accordance 
with the law governing the agreement. In this case the governing 
law of the agreement is English law, therefore all disputes under 
the agreement will be settled in accordance with English law.

He said that each country has its own notion and definition of what 
constitutes corruption. The accountability legislation in Pakistan 
defined what constitutes corruption and corrupt practices. The 
present issue was a purely legal issue involving a very special 
criminal law of Pakistan. While the arbitrators can decide 
commercial disputes arising out of the PPA, their jurisdiction 
cannot be extend to decide criminal matters, he maintained.

The arbitration clause in the PPA, he said, could not be regarded 
as an arbitration agreement between HUBCO and WAPDA to refer those 
matters for arbitration, which were triable under criminal law.

It would be absurd to allow the issue of corruption under the 
affirmation clause, which relates to bribery of and payment of 
kickbacks to Pakistan officials, to be decided in accordance with 
English law, when the criminal proceedings in relation and said 
issues can only be decided in Pakistani courts in accordance with 
Pakistan law, he added.

He said scope for the review of the award was limited to the 
allegations of misconduct on the part of arbitrators. Therefore 
arbitrators should not arbitrate a dispute involving grave national 
interest because it denies the parties right to challenge that 
award on the merits. Furthermore, in this case, the doctrine of 
second look will not be open to the parties at the stage of 
recognition and enforcement in Pakistan, that if award is to be 
enforced in Pakistan, he said.

The counsel said the affirmation clause did not indicate that the 
parties had contemplated that allegation of fraud and corruption 
must also be referred to arbitration. He said in fact the 
affirmation is a declaration given by HUBCO recognizing that 
bribery, kickbacks, commissions, etc. are all serious offences in 
Pakistan for which they can be made accountable if it is found that 
they are involved in corrupt practices.

Moreover, the affirmation clause does not suggest that the parties 
had contemplated that allegation of corrupt practices would be 
arbitrated but in fact it expressly provides that they would be 
dealt with by the courts of Pakistan. "This clause in fact excludes 
the jurisdiction of the arbitrators to examine allegations of 
corruption, and fraud," he added.

Even the New York convention on the recognition and Enforcement of 
Foreign Arbitral Agreements and Awards contemplates that there 
might be some matters which are incapable of being arbitrated.

He said such contemplation suggests that the Convention recognized 
that the parties to the conventions might have a special interest 
in having certain matters adjudicated judicially than through 
private arbitral tribunals.

The counsel, in his closing remarks said that books were being 
written about the new kind of imperialism established by the 
multinationals. The dispute is not on the CPP but on that CPP which 
was the result of corruption, fraud and abuse of authority.

The court announced that it would sit in Lahore next week and 
conclude the case next Friday. Barrister Umer Bandial, another 
counsel of WAPDA, will start his arguments on Monday.

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20000421 
-------------------------------------------------------------------
WAPDA wants original debt-equity ratio restored
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, April 20: The WAPDA counsel informed the Supreme Court 
bench hearing HUBCO-WAPDA case, that if the project cost of the 
HUBCO power plant was determined on the basis of original schedule, 
and the original debt-equity ratio was restored, the lingering 
dispute would end immediately.

Fakhruddin G. Ibrahim, the WAPDA counsel, in response to the query 
by Justice Munir A. Sheikh stated that if HUBCO was ready to revert 
back to the original schedule and debt equity ratio of 80-20, the 
dispute would end immediately.

The HUBCO counsel, Abdul Hafeez Pirzada, said that he would respond 
to the query at his turn. The WAPDA counsels -Fakhruddin G. Ibrahim 
and Barrister Umer Bandial- continued their opposition to signing 
of amendments in the Power Purchase Agreement (PPA).

The WAPDA counsel is attempting to persuade the court that the 
three instruments called, Supplemental Deed, First Amendment and 
Second Amendment were procured fraudulently, and in violation of 
public policy by HUBCO.

The court also inquired from the counsel of HUBCO what would be his 
response if the matter was referred to expert for the resolution. 
The HUBCO counsel said that the court should not stand in the way 
of arbitration proceedings before the ICC's arbitration tribunal, 
and the members of the ICC tribunal were competent to deal with the 
technicalities of the matter.

The HUBCO counsel stated that ICC arbitration tribunal consisted of 
Dr Kamal Hussain, a leading lawyer of Pakistan before the partition 
in 1971, and the arbitrator by HUBCO was an Australian judge. The 
Umpire judge was also a judge from Ireland. Barrister Umer Bandial, 
counsel of WAPDA, said that all the members of the tribunal were 
legal experts, and not experts of commercial matters.

Justice Munir A. Sheikh inquired from HUBCO counsel that if WAPDA 
would be allowed to raise the question of fraud and corruption. The 
HUBCO counsel said WAPDA would be free to raise any issue and in 
fact had raised certain issues before the ICC's arbitration 
tribunal.

Justice Ijaz Nisar inquired from HUBCO counsel why the matter 
should not be referred to an expert in Pakistan. The HUBCO counsel 
said that dispute resolution mechanism agreed by the parties should 
be allowed to take its course.

Fakhruddin G. Ibrahim pointed out to the court that the provision 
of referring the matter to the expert was part of the original PPA. 
But it was deleted through the controversial amendments by the 
HUBCO in the PPA.

The WAPDA counsel said that the matter was sub-judice in Pakistani 
courts and should not be taken to the ICC's arbitration tribunal.

At the end of proceedings, the bench laid down time frame for the 
conclusion of the case. After consulting lawyers of both the 
parties, it was announced by the court that it would try to 
conclude the case by next Friday.

Mr Ibrahim, would complete his submissions on Friday. The bench 
would assemble in Lahore on Monday and Umer Bandial, another 
counsel of WAPDA would complete his submissions within two days. On 
Wednesday, the Deputy Attorney General would take one hour to 
complete his submission. The HUBCO counsel said that he would 
conclude his winding up arguments on Friday.

The bench made it clear that if the case could not be completed in 
the next week, then it would be delayed for months as the judges of 
the present bench would become part of the bench of the full court 
bench hearing the petitions challenging military take over on 
October 12,1999.

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20000418
-------------------------------------------------------------------
HUBCO earned profit illegally: WAPDA counsel
-------------------------------------------------------------------
By Rafaqat Ali

ISLAMABAD, April 17: A Supreme Court bench hearing HUBCO petition 
was told by WAPDA counsel that the company had made a profit of 
over Rs24 billion in 27 months on its total investment of Rs11 
billion.

Fakhruddin G.Ibrahim said the huge profit of 215 per cent of the 
total equity was made due to changes in the original power purchase 
agreement (PPA) through fraud, corruption and in violation of 
public policy. He was arguing in the appeal filed by the HUBCO 
against an order restricting it from taking the matter before the 
International Chamber of Commerce (ICC) for arbitration.

The counsel said he would demonstrate that the amendments made in 
the original PPA, changing the whole economics of the project, were 
the result of corruption and fraud. He explained about the tariff 
under the original PPA, signed in 1992, and the effects of the 
amendments.

He said the dispute with HUBCO was only confined to capacity power 
purchase (CPP) and the WAPDA had no dispute with regard to 
electricity power purchase (EPP).

Mr. Ibrahim said the increase in tariff due to increase in inputs - 
furnace oil - fell in the category of EPP on which WAPDA had no 
dispute with HUBCO.

The counsel contended that the PPA was the mother document, signed 
on Aug 3, 1992 for 30 years supply of electricity to WAPDA. Under 
the original PPA, HUBCO was to sell power to WAPDA at a levelized 
CPP tariff of 3.29 cents per kilowatt at 64 PLF (plant load 
factors).

After two amendments and a supplemental deed the levelized tariff 
increased from 3.29 cents to 4.70 cents. As a result of these 
amendments, he said, HUBCO would earn $2.6 billion over the project 
life (30 years).

The counsel said that because of this increase HUBCO made a profit 
of Rs24.85 billion during March 31, 1997 to June 30, 1999 against 
the equity of Rs11.5 billion. So far the company had earned over 
215 per cent profit on its total equity of Rs11.5 billion.

The statements that HUBCO had no finances left with it due to the 
dispute with the government and that the officials were getting 
their tickets on their credit cards were totally irrelevant, the 
counsel maintained. He said no business offered the profit of 
Rs24.85 billion on the total investment of Rs11.5 billion in 27 
months.

Justice Munir A. Shaikh inquired if WAPDA had offered any 
guaranteed return to the HUBCO on its investment. The counsel 
stated that HUBCO had guaranteed 18 percent return a year on the 
equity from the date of its induction.

The counsel made a comparison of the tariff of HUBCO with other 
companies. He said HUBCO, being the bigger company, was in better 
position to reduce the tariff.

The counsel stated that the levelized CPP was 3.29 cents under the 
original PPA for 30 years. But it increased to 4.70 cents CPP due 
to amendments. The impact of the excess amount after the amendments 
in the PPA was $3119 million.

The counsel also presented a comparison of levelized CPP tariff of 
HUBCO with other IPPs. HUBCO CPP tariff (after amendments) is 5.06 
cents; AES 3.30 cents; Fauji Kabirwala Power 2.89 cents; Habibullah 
Coastal Power 3.09 cents; Saba Power 2.83 cents; Japan Power 1.97 
cents; Power Generation 1.74 cents; Liberty Power 2.90 cents; 
Rousch (Pak) Power 3.17 cents; and Southern Electric Power 2.69 
cents.

The counsel further stated that the dispute mechanism, provided 
under the original PPA, was deleted through these amendments. He 
said 45-paged schedule-VI had provided comprehensive mechanism for 
the dispute resolution. It provided that if there was any dispute 
it should be first referred to an expert. If the parties had no 
faith on one expert, they were empowered to appoint an expert of 
their choice each. The two experts would appoint an umpire.

Clarifying WAPDA's position the counsel said a case was pending 
before the ICC and courts in Pakistan. Mr Ibrahim added, he would 
demonstrate that the courts should determine this dispute. Not only 
because of limitation of the arbitration clause in the agreement 
itself but also because of increase in tariff claimed under 
supplemental deed of Nov 16, 1993; amendments in PPA on Feb 2 and 
Oct 17, 1994, were the result of corruption, fraud and in violation 
of public policy, the counsel said.

He said that he would show to the court that how these documents 
came into existence and how those documents had changed the PPA. 
Mr. Ibrahim is assisted by Barrister Umer Bandial.

The SC bench consisted of Justice Mohammad Bashir Jehangiri, 
Justice Shaikh Ijaz Nisar, Justice Abdur Rehman Khan, Justice 
Shaikh Riaz Ahmed and Justice Munir A. Shaikh.

The court announced that it would continue hearing of the case in 
Islamabad in the current week and if it was not completed, it would 
hear the case in Lahore in the week starting from April 24.

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20000418
-------------------------------------------------------------------
Usman's appeal admitted for hearing
-------------------------------------------------------------------

KARACHI, April 17: An Appellate Bench of High Court of Sindh (SHC), 
comprising Justice Abdul Hameed Dogar and Justice Wahid Bux Brohi, 
admitted for regular hearing appeal filed by Dr Usman Farooqui, 
Anisa Farooqui and Sharmila Farooqui, wife and daughter of Usman 
Farooqui, former Chairman of Pakistan Steel Mills.

When the matter was called, Barrister Choudhry Aitzaz Ahsan, 
assisted by Raza Hashmi, submitted initial arguments. Mr Ahsan, 
leading counsel for the appellants, also moved two miscellaneous 
applications seeking suspension of the sentence and to enlarge the 
appellants on personal bonds.

Mr. Ahsan referring to section 426 of CrPC submitted before the 
Bench that according to this section, the Bench can suspend the 
sentence, grant bail to the appellants or order their release on 
personal bonds. He also referred to NAB ordinance and said that the 
new law restricts grant of bail to the accused/appellants but 
remaining two options of suspending an impugned judgment/sentence 
and release of the accused on personal bonds are still with the 
Bench.

He requested the court to suspend the sentence and to order release 
of the appellants on personal bond/or surety. The Bench after 
hearing him issued notices to the state for April 24.

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20000420
-------------------------------------------------------------------
SHC restrains Asif's shifting
-------------------------------------------------------------------

KARACHI, April 19: A bench of Sindh High Court ordered that Sen 
Asif Ali Zardari not be shifted away from the Jinnah hospital till 
further orders.

The bench, comprising Justice Abdul Ghani Shaikh, was hearing a 
contempt of court application filed by Asif Zardari, accused in the 
murder case of Mir Murtaza Bhutto and six others.

When the matter was called, the additional advocate-general of 
Sindh, complying with the orders of the bench passed on the last 
date of hearing, placed a report from the medical board which 
examined Sen Zardari for his spinal chord problem. The bench after 
perusing the report put off further hearing till April 24. Farooq 
H. Naek appeared for the applicant.-APP

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20000419
-------------------------------------------------------------------
Wattoo's plea referred to CJ
-------------------------------------------------------------------
Staff Reporter

LAHORE, April 18: The Lahore High Court division bench referred 
former chief minister Manzoor Wattoo's appeal against his 
conviction in the plots reference to the chief justice as one of 

its members had prosecuted the reference before an LHC ehtesab 
bench prior to his elevation as a high court judge.

As the appeal came up for preliminary hearing Justice Khwaja 
Muhammad Sharif, who along with his colleague, Justice Riaz Kayani 
constitutes the special appellate bench, recalled that he had 
appeared as special public prosecutor in the reference against Mr 
Wattoo before an ehtesab bench when he was advocate-general of 
Punjab. The reference, originally filed under the Ehtesab Act, was 
subsequently transferred under the National Accountability Bureau 
Ordinance to an accountability court that convicted the ex-CM on 
April 4.

Justice Sharif observed that it would not be proper for him to hear 
an appeal against conviction in a case initially prosecuted by him. 
The bench accordingly decided to refer the appeal to Chief Justice 
Mian Allah Nawaz for an 'appropriate' order.

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20000421 
-------------------------------------------------------------------
Nawab Marri's bail plea rejected
-------------------------------------------------------------------
Staff Correspondent

QUETTA, April 20: A Balochistan High Court's division bench has 
rejected the bail application of Nawab Khair Bukhsh Marri in the 
Justice Nawaz Marri murder case. The court while rejecting the bail 
application observed in its judgment that the prosecution had 
leveled serious allegations of Nawab Marri's involvement in the 
murder of the late justice. Therefore at this stage bail could not 
be granted.

The bail application was filed by lawyers of Nawab Marri after 
rejection of his bail plea by Mohammad Akbar Achakzai, judge of the 
Court for suppression of terrorist activities, in March.

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20000416
-------------------------------------------------------------------
Local Taliban warned against meddling
-------------------------------------------------------------------

TANK, April 15: Tribal elders of South Waziristan warned Pakistani 
Taliban movement against any interference in the tribal system. 
Prominent tribal elders at a news conference said that some 10 
million people in the tribal belt would strongly react if the 
Taliban tried to interfere in the tribal set-up.

Tribal elders, belonging to Mehsood, Wazir, Burki and Betanni 
tribes and members of Tribal Union of Journalists said there was no 
Taliban movement for "promotion of virtue and prevention of vice" 
and decisions were made in the area under the traditional Jirga 
system. They said that people in tribal areas had formed a special 
peace committee to check crimes and to maintain peace. The 
committee had so far burnt 60 houses of criminals and handed over 
dozens of them to the local administration.

The tribal elders denied reports that Taliban movement was holding 
a conference in Razmak, tehsil headquarter of North Waziristan, on 
April 20 and said the owners vehicles would gather in Razmak to 
press the government for incentives to the owners of non-customs 
duty paid vehicles.-NNI

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20000419
-------------------------------------------------------------------
Attack on Iranian leader: Suspect escaped to Pakistan
-------------------------------------------------------------------

TEHRAN, April 18: A leading suspect in March 12 shooting of an 
Iranian reformist politician fled to Pakistan three days later 
aboard an airliner which mysteriously diverted to Karachi from an 
internal flight, the government newspaper Iran reported.

The daily quoted an unidentified member of parliament as saying 
"the person who got off at Karachi was called Qassemi and had an 
active role in the attack" on Said Hajarian.

Rumours have been circulating for several days that the organizer 
of the March 12 attack had "obliged" the pilot of the flight from 
Kerman, in southern Iran, to Tehran, to fly to Karachi.

The newspaper quoted Hossein Marashi, the deputy for Kerman and 
secretary-general of the moderate Executives of Construction party, 
as demanding an explanation for the diversion of the plane from the 
civil aviation authorities.

The March 15 diversion was explained at the time as due to a 
"technical malfunction" related to the navigational system of the 
IranAir Airbus.

Ten people are due to stand trial in connection with the 
assassination attempt in the coming weeks in a revolutionary court 
in Tehran amid allegations by reformists that they are scapegoats 
covering up high-level involvement.-AFP

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20000418
-------------------------------------------------------------------
Action against religious schools ruled out
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, April 17: The interior ministry categorically said the 
government is not considering any action against Deeni Madaris 
(religious institutions). In a handout issued here, the interior 
ministry spokesman reiterated government's view that majority of 
the Madaris were doing good work and were imparting religious 
knowledge to the youth.

Dismissing the reports in which the interior minister was quoted as 
having said that the government was considering action against 
Deeni Madaris, the spokesman said the minister had actually said 
that action was being considered against sectarian groups. "The 
government in fact wanted Deeni Madaris to expand their scope of 
education and include latest disciplines in their syllabus," the 
spokesman said, and added, "there was no question of any action 
against Deeni Madaris." 

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20000421 
-------------------------------------------------------------------
NGOs need no clearance from Intelligence Bureau 
-------------------------------------------------------------------
Staff Reporter

KARACHI, April 20: The NGOs in Sindh do not need to get a clearance 
from the Intelligence Bureau for registration with the government, 
it is learnt. According to sources, the Sindh Social Welfare 
Department has, however, started scrutinizing the workings of all 
the NGOs functioning in the province.

The sources said the department had sought, among other things, 
from the NGOs the financial details such as sources of funding, 
areas of work, audited accounts of previous years, etc. However, 
unlike Punjab, the NGOs here are not being screened through the 
Intelligence Bureau.

Responding to the Dawn queries, Sindh Minister of Social Welfare 
Shahida Jamil said so far the department had not received any 
intimation from the federal government about the screening of NGOs. 
Referring to reports about screening exercise in Punjab, she said 
"either the exercise is being carried out only in Punjab, or if it 
is for the entire country, the department here may get the 
intimation soon."


=================================================================== 
 BUSINESS & ECONOMY
20000422 
-------------------------------------------------------------------
Forex rules to be changed to attract investment
-------------------------------------------------------------------
By Masood Haider

NEW YORK, April 21: Finance Minister Shaukat Aziz told the Wall 
Street investment and fund managers that the government's economic 
revival programme would offer many opportunities for foreign 
investors in Pakistan. He said the new measures would increase the 
country's tax base and revive sick industries.

Briefing the fund managers about Pakistan delegation's meetings 
with the officials of the US Treasury Department and the Bretton 
Woods institutions, Aziz said: "We have come to terms with the past 
mistakes." He said that the government had moved to liberalize the 
foreign exchange rules to encourage foreign investments. He also 
informed them that major multinational oil exploration companies 
had expressed their interest in Pakistan's vast resources of oil 
and gas and several companies were poised to come to the country 
for that purpose. Saying that our information technology industry 
lagged behind India, Aziz said Pakistan would encourage the Info-
tech industries.

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20000422
-------------------------------------------------------------------
Fresh FCY deposits: Ban on foreign placement may go
-------------------------------------------------------------------
By Mohiuddin Aazim

KARACHI, April 21: Pakistan may soon allow both local as well as 
the foreign banks operating on its soil to invest their fresh 
foreign currency deposits abroad. 

Sources close to ministry of finance say the ministry feels it is 
time to withdraw the June 1999 restriction on investment of fresh 
foreign currency deposits abroad because Pakistan can no longer 
ignore the reservations voiced by the IMF on this issue. They say 
the IMF has told Pakistan economic managers that the restriction 
defied the spirit of the financial reforms launched with the World 
Bank assistance-and as a part of an agreement with the IMF. They 
say the restriction needs to be withdrawn for that simple reason in 
the first place-even if there are no other reasons.

The sources say the restriction may go any time next month but 
after developing proper safeguards to ensure that placement of 
fresh foreign currency deposits abroad do not create any problem at 
home. They say that is very much necessary because some $345 
million worth of fresh foreign currency deposits of the banks are 
now placed with the State Bank. These deposits form part of the 
gross liquid foreign exchange reserves.

At present gross reserves are worth less than $1.5 billion and if 
banks are allowed to invest fresh FCDs abroad the stock of the $350 
million deposits placed with SBP would either vanish or at least 
fall substantially. That depends on whether the State Bank stops 
accepting fresh foreign currency deposits of the banks or the banks 
are given the option to place these deposits abroad or continue to 
keep them with the SBP.

The SBP started accepting fresh foreign currency deposits of banks 
in June last after refraining them from placing these deposits 
abroad. Banks had placed some $595 million worth of the deposits 
abroad before the ban was imposed.

Senior bankers say all fresh foreign currency deposits raised by 
the banks after June 3, 1999 are lying with the State Bank though 
the banks were allowed to use them in the local corporate market.

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20000422
-------------------------------------------------------------------
IMF wants sample, not mass tax survey
-------------------------------------------------------------------
Staff Correspondent

ISLAMABAD, April 21: IMF has cautioned the Central Board of Revenue 
against a mass survey it intends to conduct for increasing sales 
tax and income tax collection and for documentation/ charging of 
the smuggled goods. The CBR plans to conduct these two surveys 
simultaneously from May 1, 2000. However, the IMF has objected to 
the scope of their coverage including volume of registration/ 
collection.

Dawn was informed by knowledgeable quarters that the Fund officials 
monitoring tax policy/administration in Pakistan had expressed 
their opposition to the method of door-to-door and shop-to-shop 
visit by the survey teams. "They have asked the CBR to go for a 
sample survey of each sector/section of the under-assessing/non-
registered scheduled taxpayer," a concerned senior official said.

The mass survey would not be in the interest of tax policy 
implementation and administration both in terms of expanding the 
taxpayer net or collection of revenues. "Scope of the planned 
survey has already caused ripples in the country and the harassment 
involved is deemed to be larger than the gains expected," the IMF 
officials are said to have remarked.

The questionnaire specimen which the surveyors are to get filled in 
by the person approached for information, and the non-stipulated 
punishment for providing wrong information has also drawn 
objections from the IMF officials.

The sample survey proposed by IMF is for covering a limited section 
of each sector of targeted taxpayers; setting money/time wise 
targets for coverage and deposits plus registration; and 
involvement of fewer surveyors, most preferably by private 
companies.

A meeting of the senior ministry of interior officials is scheduled 
for April 24, 2000, to which the CBR high ups have also been 
invited to discuss the issue in the light of IMF observations.

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20000421  
-------------------------------------------------------------------
IMF 'pleased' with new reform package: official
-------------------------------------------------------------------
By Masood Haider

WASHINGTON, April 20: A senior official of the International 
Monetary Fund (IMF) said that the Fund officials were "pleased" 
with the new economic reforms package submitted by Pakistan. The 
official who wished not to be named, told Dawn that prospects of an 
agreement on Pakistan's loan package looked "good" adding however, 
that a lot more was needed to be done before a final agreement was 
signed.

The official said that Pakistan government's revelation that former 
government had given misleading figures to the Fund in the past "in 
fact helped" Pakistan's case combined with the commitment that in 
future no mis-reporting of figures would take place. "We want full 
transparency in the talks," the official said. Besides, the IMF 
official said that meetings of Pakistani financial team with the US 
treasury department officials would be very helpful when the Fund 
makes the final discussion for the resumption of loan package to 
Pakistan.

An IMF mission would now visit Pakistan next month to continue 
talks with the government, and a final decision by the IMF board is 
expected by June or early July.

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20000419
-------------------------------------------------------------------
No fake budget figures in future: Shaukat
-------------------------------------------------------------------

WASHINGTON, April 18: An admission by Pakistan's present rulers 
that the former government doctored budget figures to win cash from 
the International Monetary Fund shows they had made a clean break 
from the past, Finance Minister Shaukat Aziz said.

Aziz told Reuters after weekend talks with senior IMF officials in 
Washington that he was "cautiously optimistic" that Pakistan would 
replace a stalled $1.56 billion IMF lending program with a new 
package by the end of June.

"Our finding accounting errors, advising the fund and then taking 
measures to prevent the occurrence of such discrepancies in the 
future clearly goes in Pakistan's favor," Aziz said in an 
interview. "The IMF is going to review this matter in the next few 
weeks," he said.

It was disclosed earlier this month that the Sharif government had 
grossly understated the budget deficit in the last fiscal year at 
3.4 percent of gross domestic product instead of 6 percent.

The IMF, stung by reports of misleading information and misuse of 
funds by several borrowing countries, said this weekend it would 
require independent audits of central bank statements for all 
countries with current or future loans.

The IMF halted lending to Pakistan last July after the government 
lagged in implementing key tax reforms and resolving tariff dispute 
with Hub Power Co Ltd (HUBCO).

The finance minister said the government had submitted a structural 
reform package to the IMF that would serve as the basis for a new 
lending program. He indicated Pakistan was not seeking to revive 
the existing $1.56 billion IMF plan.

"Going back to the past may not be productive," he said, saying he 
wanted a plan finalized by fiscal year-end in June. He also said 
the government had a "very ambitious" privatization plan aimed at 
raising $2-4 billion within three years.-Reuters

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Debt rescheduling: G-77 backs Pakistan proposals
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By Masood Haider

UNITED NATIONS, April 19: Finance Minister Shaukat Aziz called on 
the Bretton Woods institutions to evolve an enduring and permanent 
solution of the overwhelming levels of external debt burden of 
middle income developing countries. Speaking at the third meeting 
of the Economic and Social Council (Ecosoc) and the Bretton Woods 
Institutions (BWIs) at the United Nations, Aziz proposed that a set 
of principles or guidelines might be adopted to promote a 
comprehensive solution of the debt burden of developing countries.

He suggested that the middle income countries should be allowed 
debt rescheduling and debt re-profiling, enabling them access to 
debt servicing institutions and financial markets.

He stressed that debt relief should be accompanied by the opening 
up of markets of the developed countries to the exports of 
developing countries. Aziz underscored that it was trade and not 
aid which would promote true development in the developing 
countries.

He underlined the need for evolving a set of multilaterally agreed 
indicators for poverty eradication. Such indicators, he stated, 
would help in measuring the impact of the efforts being made by the 
developing countries in this regard. The leaders of the Group of 77 
supported Aziz's proposals.

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Software technology parks for three cities
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ISLAMABAD, April 17: Under a new Information Technology policy, 
being framed by the government, initially three Information 
Technology Parks will be established in Islamabad, Lahore and 
Karachi to provide facilities to the people.

Dr. Ejaz Hussain Khawaja, director general Pakistan Computer Bureau 
said that all facilities relating to Computer and Information 
Technology (IT) will be provided under one roof for use by the 
people. Even space will be allocated on payment in the said parks 
for use by private parties, he said.

Dr. Ejaz said ten groups have been formed to firm up 
recommendations on Information Technology to be submitted to the 
government soon.

To promote IT, a sectoral allocation of an estimated Rupees five 
billion will be required, he said and added that Pakistan has great 
potential to export software to earn foreign exchange for the 
country.-APP

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20000416
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Move to abolish wealth tax: CBR taps alternate sources of revenue 
-------------------------------------------------------------------
By Ikram Hoti

ISLAMABAD, April 15: Central Board of Revenue (CBR) has launched an 
exercise to tap alternative sources of revenue to compensate for 
the loss caused by the proposed government decision to do away with 
the wealth tax (WT) in the next budget.

CBR sources informed Dawn that the listing of alternative sources 
for Rs4bn targeted WT for the current financial year and Rs4.5bn 
for the next year, coincides with another exercise for clubbing 
together a number of tax stages on the Withholding Tax side, 
projected to earn Rs80bn in the current fiscal and Rs100bn in the 
next financial year.

The clubbing together of the tax stages may involve loss of another 
Rs2-2.5bn to make up for which the CBR has been given the task of 
listing additional revenue sources under the Direct Taxes Schedule.

The CBR is planning to induct certain adjustments in the 
withholding tax stages to make up for Rs6.5-7bn loss. This loss is 
expected to occur due to proposed minimizing these stages from 21 
main- heads to 15 or even lesser, and due to removal of WT as a 
large resource chunk. These adjustments, say CBR officials, may 
have to be made mainly through these measures: effective and faster 
extension of Agriculture Income Tax to the specified large-income 
groups; improving coverage of the companies zones through better 
auditing; increase of withholding tax on import and export stages; 
improving deposits in rental, electricity/telephone bills, 
dividends and construction industry.

Steps have been taken to improve the coverage in Agricultural 
Income taxation and a report of the joint committee on the subject 
is to be submitted to ECNEC on April 24 for incorporation of the 
proposals in the next budget.

So far, the situation of deposits (July-March three quarters) in 
the areas where withholding stages are to be cut down, include: Sec 
50 (1) (salaries) Rs6bn; Sec 50 (2) (securities) Rs10bn; Sec 50-2A 
(bank interest) Rs4bn; Sec 50-2B (cheques/TTs/DDs) Rs5m; Sec 50-3 
(non-residents) Rs500m; Sec 50-3A technical fee) Rs300m; Sec 50-4 
(contracts) Rs19bn; Sec 50-4A (commission) Rs1m; Sec 50-5 (imports) 
Rs12bn; Sec 50-5A (exports) Rs1.5bn; Sec 50-5B (bearer 
certificates) Rs20m; Sec 50-6 (transport) Rs550m; Sec50-6A 
(dividends) Rs 550m; Sec 50-7 (bonus) Rs10m; Sec 50-7A (auction) 
Rs450m; Sec 50-7B (rentals) Rs100m; Sec 50-7BB (construction) 
Rs30m; Sec 50-7C (prizes) Rs500m; Sec 50-7D (interest) Rs550m; Sec 
50-7E electricity bills) Rs2bn; Sec 50-7F (telephone) Rs600m; 
miscellaneous Rs2bn.

In view of the poor performance on these withholding section, where 
only Rs60.72bn have been collected in the first three quarters 
against a target of Rs75bn, the CBR expects to collect only Rs115bn 
in the Direct Taxes resources sections for the 12 months of the 
financial year. The target for this CBR wing is Rs125 bn. But this 
is twice revised downward target. The original target was Rs140bn.

The officials say that having clubbed a number of stages under the 
new parameters for 2000-2001, the Direct Taxes wing will be facing 
a Rs7bn resources cut, and to meet it the auditing will have to be 
improved. For this purpose, the CBR is relying heavily on the 
property and assets/turnover survey to be conducted in May 2000 
throughout the country.

The figures to be collected in this survey will be computed for the 
direct taxes resource expansion for the next financial year, they 
added. 

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20000422
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Stocks pass through lean session
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Staff Reporter
KARACHI, April 21: The KSE 100-share index was off 33.18 points at 
1,991.66. Trading volume fell below the 200m shares, reflecting 
that selling did not assume an alarming proportion on any of the 
counters and only extreme gains were further clipped.

The market decline was led by some of the leading MNCs, leading 
among them being BOC Pakistan, Shell Pakistan, Knoll Pharma, 
Colgate Pakistan and Dawood Hercules, falling by Rs2.00 to 8.95.

Clariant Pakistan, which announced a cash dividend of 25% for the 
financial year ended Dec 31, 1999 also fell by Rs4.00 on post-
dividend selling. Among the locals, which fell sharply Adamjee 
Insurance was prominent, off Rs9.00, Bank of Punjab, IGI, Kohinoor 
Spinning, Blessed Textiles and Shaheen Insurance, which suffered 
fall ranging from Rs2.00 to 4.00.PSO and Pakistan Oilfields also 
fell by Rs3.00 to 3.50.

Leading gainers were led by Orix Leasing, Gulf Commercial Bank, 
Millat Tractors, Singer Pakistan, Wah Noble Chemical, Nishat 
Chunian, Premier Sugar and Pakistan Gum Chemicals, rising by Rs1.90 
to 5.25. But the largest gains were recorded by Javed Omer and 
SK&F, which rose by Rs 8.00 to 10.00.

Trading volume shrank further to only 182m shares from the previous 
326m shares. The most active list was topped by PTCL, lower 55 
paisa at Rs31.65 on 35m shares followed by ICI Pakistan, off 35 
paisa at Rs18.35 on 26m shares, Hub-Power, easy 85 paisa at Rs26.15 
on 16m shares, PSO, off Rs3.50 at Rs232.00 on 12m shares and 
Chakwal cement, easy 20 paisa at Rs4.00 on 11m shares. Other 
actives were led by Ibrahim Fibre, off 50 paisa on 11m shares, D.G. 
Khan, up 25 paisa on 10m shares, FFC-Jordan Fertilizer, lower 45 
paisa on 9m shares, Dhan Fibre, off 65 paisa on 6m shares, Lucky 
Cement, easy 30 paisa also on 6m shares and Sui Northern and 
Southern Electric, off 70 and 10 paisa on 4m shares each.

DEFAULTER COMPANIES: Textile textiles shares again came in for 
active bouts of buying and selling on this counter under the lead 
of Crescent Spinning, unchanged at Rs3.50 on 33,000 shares followed 
by Khurshid Spinning, easy 10 paisa at Rs3.50 on 30,500 shares and 

Azam Textiles, lower 10 paisa at Rs2.50 on 16,500 shares.

DIVIDEND: Central Insurance cash 50% plus bonus shares at the rate 
of 20%, Clariant Pakistan cash 25% and Crescent Spinning, nil. 
Market at a glance.

TONE: easy, total listed 763, actives 317, inactives 446, plus 94, 
minus 174, unc 49.

KSE 100-SHARE INDEX: previous 2,024.84, today’s 1,991.66, minus 
33.18 points.

TOP TEN: gainers SK&F Rs10.00, Javed Omer 8.00, Premier Sugar 5.25, 
Nishat Chunian 4.85, Singer Pakistan 2.00.

LOSERS: Adamjee Insurance Rs9.00, Colgate Pakistan 8.95, Dawood 
Hercules 8.50, Shell Pakistan 5.00, Knoll 5.00.

TOTAL VOLUME: 182.068m shares.

VOLUME LEADERS: PTCL 34.965m, ICI Pakistan 26.135m, Hub-Power 
16.151m, PSO 12.157m, Chakwal Cement 11.100m shares.

Back to the top
=================================================================== 
 EDITORIALS & FEATURES
20000421
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The credit side and a hearing problem
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By Ayaz Amir

IN six months time General Musharraf's government has several 
surprising achievements to its credit. What would have seemed 
impossible in October last year is now coming to pass. Begum 
Kulsoom Nawaz is well on her way to becoming a national leader. So 
much for destroying the old and ushering in the new. If Begum Nawaz 
- who seems to have more innate political sense in her than Benazir 
Bhutto - becomes Pakistan's Indira Gandhi or, more startling still, 
Aung San Suu Kyi, this helpless nation, in thrall to one set of 
incompetents after another, will know whom to thank.

Who would have thought that in six months the same people who had 
become sick and tired of the Muslim League's heavy mandate would 
start to think that anything was better than the mind-boggling 
confusion of military rule? But this is what has happened. The 
people's appetite for 'sham' democracy is being restored.

General Musharraf also seems well set to equal if not break the 
record set by his predecessors for foreign travel. A curse seems to 
hang over this country. Its leaders - Benazir, Nawaz Sharif and now 
the reforming Generalissimo - just cannot seem to stay at home.

Who would have thought it possible for any government to squander 
so much goodwill in so short a time? But this junta, more insular 
and inward looking than any to have preceded it, has done it. On 
the morrow of October 12 anyone could have been forgiven for 
thinking that the nation's heart beat in unison with that of the 
army command. As for the political parties, headed by the Muslim 
League, they were objects of popular ridicule and anger. A week, 
they say, is a long time in politics. On that time-scale six months 
is an eternity. Small wonder then if things have changed. The 
political parties, discredited as they were, are looking up while 
all that remains with the military leadership are the drawing-room 
classes (who have their own peculiar views about 'liberalism') and 
the Pakistani expatriate community in North America.

I have had occasion to mention this before. I will seek the 
indulgence of readers to say this again. The winds of criticism may 
be howling about the ears of the military government, things may be 
falling apart, but the foremost priority of the army monitoring 
teams in Chakwal is to remove push-carts and vendors from the 
historic Chapper Bazar. Mr Shaukat Aziz talks of reviving business 
confidence in the country. He should come to Chakwal and see what 
has happened to business confidence here. Trading is down by half, 
so thorough has been the mayhem ordered in a city, which lies at 
the heart of the army's recruitment belt.

Make no mistake about it. This is no apprenticeship of failure we 
are seeing but the real thing itself: failure in all its gaudy 
colors. Lack of direction is bad enough. But the problem is 
compounded when, instead of paying heed to the voices now rising to 
a swelling chorus from town and country, the government's 
trumpeters (a fearsome band) let no day go by without speaking of 
plans and theories which have not the slightest relation with 
reality or the real problems facing the country.

Lt-Gen Moinuddin Haider sounds tough every other day. Why, for a 
change, cannot he act tough? If words alone could achieve wonders 
then by now we would have got rid of illegal arms, curbed 
sectarianism and banned extremist madrassahs. The Iron General has 
been able to do none of this in six months but he cannot resist the 
temptation of sounding and looking like Goering whenever he 
addresses a press conference or appears on television.

Javed Jabbar is not to blame for anything. He is only doing what he 
has done throughout his life: talk incessantly, with passion, 
eloquence and little purpose. 		

Shoukat Aziz, the finance wizard from abroad, is doing what all 
Pakistani finance ministers sooner or later are compelled to do: 
carry an ivory begging bowl before the IMF and the World Bank even 
while proclaiming that they are putting together home-grown 
nostrums for the country's economic revival and prosperity.

Talking of homegrown things, whatever is happening to the original 
homegrown specialist, my friend Mushahid Hussain? Less out of 
concern for him and more out of plain curiosity, why are the 
military authorities guarding him? Do they think he will bring Tim 
Sebastian and Barbara Walters to Model Town? Have a heart Caesars, 
let him out. And Siddiqul Farooq too. What has the poor fellow 
done? As a matter of fact, the military authorities do not know 
what is good for them. One reason why Begum Kulsoom Nawaz is 
functioning so effectively is that she is uncluttered by too many 
high-profile advisers. To slow her down a little, to bog her down a 
bit, every Muslim League stalwart still in some sort of detention, 
beginning with my friend Chaudry Nisar Ali, should be let out. 
General Zia would have done this but then his political antennae 
were sharper.

But to return to the wizards of this dispensation, the strangest 
case is that of Lt-Gen Tanvir Naqvi and his district devolution 
plan. No kidding, Gen Naqvi is a bright officer. Whoever heard him 
speaking during the Zarb-I-Momin military exercises when General 
Aslam Beg was army chief came away greatly impressed. But the 
profession of arms is one thing, politics quite another. Has he 
ever cast his vote in an election? Has he ever been near a village 
polling station in his life? I doubt it. If a delegation of NATO 
commanders were visiting Pakistan the best person to address them 
from the present crop of serving or retired generals would be Gen 
Naqvi. But if an election plan were being put together I would keep 
Gen Naqvi at a distance of a hundred miles.

Every military government sets about re-inventing the wheel and 
this one is no exception. We needed a cleaning of the political 
fields after October 12. No doubt about it. If General Musharraf 
and his colleagues had picked up an avenging scythe and mowed down 
the heads of the most famously corrupt - politicos, mandarins, 
generals, judges and businessmen - the nation would have applauded 
and raised monuments of thanksgiving to the army. But that plainly 
has not been done. Nor perhaps was it possible given the Pakistan 
army's conservative character. What then are we left with? Neither 
reform nor a return to democracy. This is a policy void and a 
vacuum and it is being filled by two things: half-baked ideas, such 
as Gen Naqvi's district devolution plan, and a cast of civilian 
characters with the charisma of a Russian tractor.

There have also been unexplained and gratuitous blunders along the 
way, three standing out in this regard. Whose brilliant idea was 
the Provisional Constitution Order? The judiciary was playing ball. 
It was not creating any problems for the military government. There 
was no need to humiliate it. But this was done. Why? Whose 
brilliant idea was it to go heavy on the so-called plane hijacking 
case and easy on the corruption cases against Nawaz Sharif and the 
rest of the Jati Umra plutocracy?

Whose idea was it for Pakistan to abase itself in the dust and beg 
Clinton to come to Pakistan, if only for a few hours? What did we 
gain by that groveling except the kind of humiliation that even our 
children are not likely to forget in a hurry? Nawaz Sharif has been 
punished for trying to keep flight PK 805 away from Pakistani 
shores. Is there no punishment for these costly blunders?

What accounts for the royal mess we are in? To a large extent it is 
a hearing problem. Initially, it is true, everyone with something 
to say was praising to high heavens General Musharraf's good 
intentions. That phase has passed. Blind and mindless adulation has 
turned to disappointment and frustration. But those who matter in 
this set-up just do not seem to be listening. Either they are 
contemptuous of public opinion or they lack the ability to 
assimilate criticism, in their case much of it well meant.

The surprising thing is that individually those who matter in this 
set-up are fine, decent people. It is their collective performance, 
which is lending new meanings to the word disaster.

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20000421

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Dispute resolution outside the court system
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By Nasir Aslam Zahid

HUMAN society has resorted to different methods for resolution or 
settlement of disputes. These can be divided into two main 
categories. One category comprises resort to proceedings before a 
court or tribunal set up by law for the purpose. Under this system, 
the entire proceedings, which are adversarial in nature, are 
conducted and decision taken in accordance with law. Prescribed 
procedure is required to be followed by the courts or tribunals in 
the conduct of cases. Decisions are then subject to appeals or 
revisions.

All this takes time - a lot of time. Prolonged litigation is also 
very expensive, usually beyond the reach of the ordinary citizen - 
the common man. Delay in the final disposal of cases under this 
system has been gradually increasing. A civil suit may take 10 to 
20 years before the final adjudication takes place. Criminal cases 
also generally take a few years for disposal. If this trend 
continues, a stage will be reached when there will remain no 
concept of justice for the common man. Article 37(d) of our 
Constitution casts a duty on the state to ensure inexpensive and 
expeditious justice. Access to justice is a fundamental right under 
the Constitution. It has been held so in several decisions of the 
superior courts of Pakistan.

Bill of Rights or the chapter on fundamental rights is considered 
the heart of the constitution or the constitutional system of a 
country. But what good are rights when the common man has no access 
to justice. Law has to be moulded and new methods and tools evolved 
so that justice becomes accessible to the weaker and poorer 
sections of society.

In India, a country with more than one billion souls and considered 
as the largest democracy in the world, the judicial system does not 
provide justice to the common man. In "India Today," a popular 
Indian journal, a detailed article appeared in its issue of June 
30, 1988 on the judicial system. According to it, at that time, 
about 22 million cases were pending in Indian civil courts.

Referring to the rate of disposal of appeals in a high court, the 
article noted that, unless there was an order for early hearing out 
of turn, an appeal in that high court was expected to be taken up 
for final hearing after 50 years of its institution. Twelve years 
have passed since that article appeared. The pending caseload must 
have crossed the 30 million mark. According to that article, there 
was no concept of justice for the common man in India. In his 
famous book "We, the Nation: The Lost Decades" Nani A. Palkhiwala, 
originally known as the author of "The Law and Practice of Income 
tax", standard work on tax law in the subcontinent, but then 
becoming the champion of human rights and economic developer, had 
this to say:

"I am not aware of any country in the world where litigation goes 
on for as long a period as in India. Our cases drag over a length 
of time, which makes eternity intelligible. The law may not be an 
ass, but in India it is certainly a snail and our cases proceed at 
a pace, which would be regarded as unduly slow in a community of 
snails. Justice has to be blind but I see no reason why it should 
also be lame: here it just hobbles along, barely able to walk. A 
charitable trust, with which I am connected, filed a suit to 
recover possession of its building. It took thirty years to get the 
final decision of the Supreme Court. Even after that, the trust has 
been unable to recover full possession, because there are 
obstructionists' notices in the Small Causes Court (in respect of 
some floors) which would take another decade to dispose of. If 
litigation were to be included in the next Olympics, India would be 
certain of winning at-least one gold medal."

In Pakistan apparently the position is not that alarming but still 
it is pretty depressing. Courts are overloaded with work. The 
judicial system is choking and groaning under the weight of pending 
cases. Increase in caseload is due to several reasons. There has 
been a population explosion in the Third World during the twentieth 
century. Pakistan's population has increased from 35 to 140 
millions in just over 50 years. There has been more than a 
corresponding increase in litigation.

Then, more and more complex cases are coming up before the courts. 
On the other hand, an increase in the number of courts has not 
taken place as required. For improving the judicial system in the 
country and tackling the problem of delays, law reforms commissions 
constituted in the past have made various recommendations, but 
regrettably dispensation of justice has never been a priority issue 
for any government in the country.

The purpose here is not to discuss and dilate upon the 
recommendations of the law reforms commissions but to highlight the 
alternative methods for resolution of disputes, which fall outside 
the traditional judicial system (ADR). It may, however, be 
emphasized that urgent reform in the prevalent judicial system is 
required for its streamlining so that it may withstand the 
pressures and strains of ever increasing - and also more and more 
complicated - litigation.

ADR techniques comprise arbitration, mediation, conciliation and 
negotiation. These techniques have been in vogue throughout the 
world in one form or the other since times immemorial and could be 
described as non-formal methods of resolution of conflicts but in 
recent times these methods have started to develop on an organized 
basis and may no longer be termed as non-formal.

ADR techniques are now fairly developed in the US, Western European 
countries, Singapore, etc. In other countries also ADR is becoming 
popular and being relied upon for settling disputes. But in 
Pakistan there is hardly any progress in this area. No effort has 
been made by the government or even in the private sector for 
development of ADR techniques. A simple example will illustrate the 
point. Let us take the case of an ordinary citizen who has a small 
claim of money which is resisted by the other party, or his son has 
been injured accidentally in a traffic accident and he wants some 
compensation for his son's injuries and reimbursement of medical 
expenses.

In case the other party resists or keeps quiet, what options the 
claimant has for redress? The only option he has is to give a 
notice usually through an advocate and file a suit. And then the 
claimant is subjected to the agony and tribulations of a 
litigation, which goes on and on, and which he is generally not 
able to sustain, cost wise and time wise. Is it not possible for a 
claimant to have his claim discussed, tested and possibly settled 
before he goes to court, in a matter of months if not weeks? As 
noted, at present there is no such mechanism readily available to a 
claimant and willy-nilly he has to resort to a civil suit.

A few words here about the ADR techniques. Under arbitration the 
parties agree to refer their disputes to one or more arbitrators, 
whose decision (award) is binding upon the parties. However, law 
(Arbitration Act 1940) allows the award to be challenged in courts 
and the initial decision of the court on the validity or legality 
of the award is subject to appeals before higher judicial forums. 
The basic idea behind arbitration was the provision of a system, 
which could decide the controversy within a short time; but 
experience shows that arbitration process, including proceedings in 
judicial forums, takes more or less the same time and expense as a 
suit does. Taking advantage of amendments in arbitration laws in 
other countries, especially the UK and the US, our arbitration law 
can be stably amended to make this system less costly and more 
expeditious.

Mediation and conciliation are the main ADR techniques. Here there 
is no judgement or award by a forum or arbitrator but the parties 
in dispute are aided by the mediator or conciliator to reach a 
settlement. Success of these methods depends on the personality of 
the mediator or conciliator. Besides being impartial and neutral, 
he must be a capable person with experience in the field to which 
the dispute relates. He should have the knack of reducing tensions 
between the contestants and bringing them closer to a settlement.

In countries where ADR techniques are well developed, there are 
institutes or centers where lists of mediators and conciliators are 
available enabling parties to choose a suitable person. Then 
professional firms have also come up providing services of trained 
personnel to appear on behalf of the parties assisting them in the 
settlement of their disputes through mediation or conciliation.

There is hardly any distinction between mediation and conciliation. 
These appear to be synonymous terms. Perhaps a distinction can be 
made out by interpreting conciliation as a process whereby the 
conciliator assists the parties to enter into discussions and 
settle their differences. In mediation, apart from being a 
conciliator, the mediator also suggests the terms of settlement. In 
these proceedings, conciliation or mediator does not take any 
decision or give any award; decision-making remains the 
jurisdiction of the parties.

Basic advantages of the conciliation or mediation process are 
informality of proceedings in which the parties themselves get 
involved as opposed to the judicial process where, apart from 
formality, the parties generally are not involved in the 
proceedings which remain in control of the court and advocates. 
Then, cost and speed-wise, the non-formal process can be sustained 
by the common man.

Experience of other countries, where ADR is now well entrenched, 
indicates that a large number of disputes do not make any entry in 
the formal judicial system as resort to ADR amicably resolves such 
disputes. Success of ADR has a very healthy effect on the formal 
judicial system. Firstly, it reduces considerably the case load of 
courts and, as a consequence, the quality of justice dispensed by 
the courts also improves as the courts then have a lighter burden 
on their hands and have relatively more time for cases they handle 
each day.

However, there are no institutions, centers or organizations in 
Pakistan specializing in the structured development of ADR 
techniques. We have no institutions like the Center for Dispute 
Resolution in the UK, the Center for Public Resources in the US or 
the International Disputes Resolution Center established in 1995 by 
the American Arbitration Association. In some laws like labor and 
family legislation there are ad hoc provisions for reconciliation 
but so far these have not been a great success. In the Philippines 
constitution of 1987, Art 13(3) reads: "the state shall promote the 
preferential use of voluntary modes of settling disputes, including 
conciliation, and shall ensure mutual compliance by the parties 
thereof in order to foster industrial peace."

In the US, Alternative Dispute Resolution Act of 1998 refers to the 
finding of Congress that alternative dispute resolution, when 
supported by the bench and bar, and utilizing properly trained 
neutrals in a programme adequately administered by the court, has 
the potential to provide a variety of benefits, including greater 
satisfaction of the parties, innovate methods of resolving 
disputes, and greater efficiency in achieving settlements and that 
certain forms of ADR, including mediation, early neutral evaluation 
and early arbitration, may have the potential to reduce the large 
backlog of cases pending in US courts, thereby allowing the courts 
to process their remaining cases more efficiently.

The US Act of 1998 requires ADR processes to be authorized in all 
district courts. These provisions of the US law require the courts 
to refer the parties to ADR techniques, where the dispute has 
already reached the courts, to explore all possibilities of a 
settlement before resorting to court trial.

There is a very useful piece of legislation in Sri Lanka and it is 
the Mediation Boards Act of 1988 under which a commission headed by 
a retired judge of the Supreme Court was constituted. Provisions of 
this law apply to Meditation Board Areas specified in the official 
gazette by the government. Once an area is so declared, the 
commission appoints a chairman and a panel of mediators for such an 
area and any person can make an application to the chairman of the 
panel for settlement by mediation of any dispute arising within 
that board area or any offence specified in the schedule to the Act 
which is alleged to have been committed within such an area.

It is further provided in the Sri Lankan law that where a panel has 
been appointed for any area, no proceeding in respect of any 
dispute arising or an offence committed within such an area shall 
be instituted in or entertained by any court unless a certificate 
of non-settlement is produced by the person instituting such an 
action. Section 8 of the law provides that where an action is filed 
in any civil court having jurisdiction over a mediation board area, 
the court, with the consent of the parties, may refer the dispute 
to the chairman of the panel of the area for settlement by 
mediation.

In Pakistan there is an urgent need for reform of the existing 
judicial system to cut down delays and improve the quality of 
justice. Along with such reform, ADR methods have to be introduced 
to tackle the majority of disputes outside the formal judicial 
system which will automatically reduce the case load of the courts 
thereby assisting the formal system in reducing delays and 
improving the quality of justice. ADR techniques on organized lines 
can be introduced under legislative cover (as in Sri Lanka) as 
without such cover desired results may not be achieved.

ADR awareness programmes may have to be organized in various parts 
of Pakistan with help from countries which have achieved 
significant success in this field. This can be done through 
seminars, lectures, and articles in newspapers and debates and 
discussions on the electronic media. Considerable information about 
ADR in other countries is available on Internet. Structured 
training programmes on ADR techniques can also be introduced for 
lawyers and judges. Awareness programmes will create the right kind 
of climate for introducing ADR methods under statutory cover.

The writer is a former judge of the Supreme Court of Pakistan

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20000419
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Timeframe & voting system
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By M.H. Askari

JUDGING from what he said while addressing a group of Pakistanis in 
London the other day, the Chief Executive's adviser on information 
and national affairs, Javed Jabbar, seems to believe that the 
problems which Pakistan has been experiencing with parliamentary 
democracy over the years is mainly because of the voting system 
adopted for the country's elections.

He was of the view that the first-past-the-post system adopted for 
election to legislatures did not truly represent the people's 
choice of their legislators and needed to be replaced by the 
proportional representative system. He also felt that if for some 
reason the present system had to be retained, only candidates 
securing 51 percent or more of the total votes would deserve to sit 
in the national or provincial assembly.

Stressing that no final decision on the issue had been taken, Javed 
Jabbar also hinted that voting might be made compulsory for all 
citizens on the electoral rolls and those not exercising their 
franchise could be given some sort of token punishment. It must be 
pointed out even at the risk of stating the obvious that a voting 
system is as good as it is made use of as a basis for, as well as a 
touchstone of, representative government.

Pakistan's experience with elections over the years leaves hardly 
any doubt that the basic problem in this country is that the system 
has not been allowed to work properly almost from the outset, it 
has been subverted and not given time to take roots. Not very long 
after the nation gained its independence, some key figures in the 
government began to develop strong reservations about democracy - a 
situation which persists to this day. 

Javed Jabbar's address to the Pakistanis also made it fairly clear, 
for the first time, that the military-led government might bring 
about changes in the Constitution if it felt the need to do so and 
especially if at any stage it became an obstacle in its way. This 
creates doubts about the prospects of a reasonably short time-frame 
for the restoration of democracy. Also, the constitution itself may 
look and read very different in the end in the process of providing 
cover for many of the changes and reforms being contemplated - some 
of them having important legal and constitutional implications.

All this has a touch of deja vu about it. Pakistanis have for all 
these five decades lived under alternating spells of democratic and 
authoritarian rule. A democratic system has only been tried for a 
few years when people are told that the system under which they 
have been governed is not compatible with their needs and 
aspirations and would therefore require to be changed. The changed 
system has barely struck root when there has been yet another upset 
at the top, leading to yet another round of changes and inevitably 
to a period of uncertainty and confusion.

When Pakistan was established as an independent state, its 
Constituent Assembly was given the dual responsibility of framing a 
constitution and also discharging the functions of a normal 
legislature. The Constituent Assembly took inordinately long years 
over its primary responsibility of drafting the constitution as it 
was much too preoccupied with the normal legislative functions.

The weak and feuding leadership which came to the helm at various 
levels in Pakistan in the early years gave the civil and military 
bureaucracy the time and opportunity to gain control over the day-
to-day governance. As Dr Ayesha Jalal has put it, taking advantage 
of the tensions and the power struggle within the state apparatus, 
"between October 1951 (after Liaquat Ali Khan's assassination) and 
October 1954, politicians, bureaucrats and generals jockeyed for 
positions amidst a complex interplay of domestic, regional and 
international compulsions (and) as this three-cornered game sapped 
political energies, the exercise of state power became increasingly 
far removed from any notion of responsible government." In the end, 
"real power came to rest with state officials unencumbered by such 
niceties as accountability to the people."

According to Dr Ayesha Jalal, the installation of Khwaja Nazimuddin 
as prime minister on Liaquat Ali khan's murder was the beginning of 
the trouble. According to her, under the constitution (the 
Government of India Act 1935 as amended to meet Pakistan's needs), 
the central cabinet stood dissolved by virtue of the prime 
minister's death and normal constitutional procedure demanded that 
the governor-general select a new team of ministers. Instead, the 
incumbent prevailed upon the governor-general (Khwaja Nazimuddin) 
to take over as the prime minister. This set a precedent for the 
future: principles of succession so uncertain as to be non-existent 
and, more certainly, the irrelevance of the people or the 
parliament in the matter.

What followed is too familiar to be recounted here. The then army 
chief, Gen Ayub Khan, who had managed to strengthen his position, 
mainly with the professional and political support extended to him 
by the Americans for their own reasons, sidelined the government of 
the day (October 7, 1958), abrogated the constitution and installed 
himself at the top. 

In the meantime, primarily to meet their cold war objectives, 
Washington sent out its "experts" to Pakistan to restructure not 
only the military set-up but a large part of the government 
machinery itself, and Ayub Khan managed to stay in power for over 
ten years. Indeed, he may have stayed longer but for his blunder of 
sending guerillas into Indian occupied Kashmir to bring about an 
uprising among the people there and in the process, risking a war 
with India.

It would be unfair to regard the takeover by Gen Pervez Musharraf 
last October as a rerun of what happened in 1958. Nawaz Sharif and 
his colleagues had violated every rule of the game of 
constitutional and responsible governance, driving the people to an 
utter state of despair. What eventually sealed the fate of his 
government was the reckless manner in which he tried to get rid of 
the army chief, Gen Musharraf, on Oct 12 last year. However, the 
initial euphoria over the ouster of the Nawaz Sharif government has 
since been yielding place to a new mood of anxiety over what lies 
ahead. Nearly six months after the military take-over, there is no 
clear indication yet of how long it will be before representative 
rule in the country is restored by fresh elections.

Gen Musharraf's reiteration during his meeting with the UN 
secretary-general that democracy would be restored in Pakistan, 
"not to please the international community but because it is in our 
own interest", is somewhat encouraging. Mr Kofi Anan's spokesman 
has confirmed that the discussions between the Pakistan Chief 
Executive and the UN secretary-general focused on two issues - 
plans for democratization of Pakistan and security. The assurance 
still falls short of a time-table for democratic restoration.

Driblets of information about the plans for the future from Javed 
Jabbar and some others may be all very well. But it would be 
advisable for Gen Musharraf and his colleagues to take the people 
into confidence with regard to an approximate time-table for the 
restoration of democracy. There have been indications that various 
aspects of the future system of governance would be the subject of 
a national debate, but so far there have hardly been any tangible 
signs of any such debate. What people have been witnessing are the 
mostly one-sided panel discussions on the national television 
network. It would be naive to believe that such exercises can carry 
much credibility with the people.


===================================================================
SPORTS
20000420
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Pakistan defeat West Indies in first final
-------------------------------------------------------------------
Sports Desk

KARACHI, April 19: Pakistan successfully defended a modest score to 
go one-up in the best-of-three finals with a 17-run victory over 
the West Indies in Barbados.

The West Indies were bowled out for 180 with three balls to spare 
while chasing 198 for victory. The West Indies suffered a dramatic 
collapse when they slumped from 99 for one in 32 overs to lose 
their last nine wickets for 81 in 17.3 overs.

Shahid Afridi finished as the pick of bowlers with three for 16 
from 21 balls. For Pakistan, it was the 13th time in 18 matches 
since the World Cup that they have won while defending targets.  It 
was Pakistan's first victory over the West Indies after two defeats 
in the preliminary round matches.

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20000418
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West Indies score 17-run victory over Pakistan
-------------------------------------------------------------------
By Qamar Ahmed

ST GEORGE'S, April 17: Pakistan made a valiant attempt to reach a 
difficult target of 249 but failed by 17 runs to beat West Indies 
in the last preliminary round fixture of the triangular series at 
the Queen's Park Stadium.

Pakistan were all out for 231 in 48.1 overs as West Indies finished 
the league rounds with four victories in as many matches. The 
defeat, however, does not affect Pakistan's position in the series 
as they had already booked their place n the best-of-three finals 
against the West Indies. 

Pakistan will have to perform a lot better with the bat than they 
have done so far. There seems to be an eternal weakness in their 
batting approach and unless they are able to apply themselves with 
much more purpose and determination they may struggle against the 
West Indian bowling which has suddenly started to show its old 
dominance. Reon King, Franklyn Rose and Nixon McLean are looking 
quite dangerous and with Curtly Ambrose coming to join them in the 
finals things could be even more formidable for Pakistan. King 
picked up three wickets for 38 on Sunday, followed by McLean two 
for 47 and off-spinner Nehemiah Perry two for 54.

Pakistan, having lost three for 24, were well served by Inzamam-ul-
Haq and Yousuf Youhana, who between them put on a sizeable stand of 
123 for the fourth wicket, to offer some hope. Inzamam made 69 off 
95 balls with five fours while Youhana hit 56 off 77 balls with 
three boundaries.

Imran Nazir lost his wicket to King while going for a big hit after 
he had striking the bowler for a huge six. Mohammad Wasim, playing 
for the first time on the tour, was run out after being sent back 
by Wajahatuallh Wasti without scoring.

Wasti soon followed when King yorked him for 10. That made Pakistan 
24 for three in the 9th over. Inzamam and Youhana then salvaged the 
innings with a mixture of sensible and purposeful batting. It 
looked rosy for Pakistan as long as they were together. But the 
stand was broken when Inzamam failed to reach his crease after 
stroking the ball into the covers. Rose, in his follow through, 
picked up the ball and hit the stumps with Inzamam stranded.

Youhana reached his fifty with three fours off 71 balls but minutes 
later he drove uppishly and was brilliantly held by a diving Jimmy 
Adams for 56. At 162 for five in the 37th over, the run rate had 
already crept over seven runs an over.

Abdur Razzaq and skipper Moin Khan put on 38 for the sixth wicket 
in an enterprising batting display but it was all in vain as the 
wickets kept falling. Razzaq (24) was bowled by Man-of-the-Match 
Reon King 24 and Moin's resistance ended when he lobbed one in the 
air off Perry to Rose at long-on in the 44th over. Pakistan lost 
their last six wickets for 84 runs in 13.4 overs.

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20000416
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Pakistan beat Zimbabwe
-------------------------------------------------------------------
By Qamar Ahmed

ST GEORGE'S, April 15: Pakistan have been set a target shade over 
four runs an over after restricting Zimbabwe to 204 for seven in 50 
overs in the tri-series match at the Queen's Park Stadium.

Pakistan were able to contain the Zimbabwe innings to a minimum was 
due mainly through some good economical bowling by spinners Mushtaq 
Ahmed and Arshad Khan, who were well assisted by all-rounder Abdur 
Razzaq.

Mushtaq claimed one for 27, Arshad three for 43 and Abdur Razzaq 
was as much steady with two for 32.

Zimbabwe were provided an excellent start by openers Neil Johnson 
and Craig Wishart after captain Andy Flower won the toss and 
decided to bat first. The openers put on 84 runs at about four runs 
an over to leave a launching pad to build on to for the rest of the 
batsmen. But once the two departed things started to slow down for 
Zimbabwe and the rest except Murray Goodwin were unable to pierce 
the gap regularly to increase the run rate.

Wasim Akram and Waqar Younis bowled to a poor line in their first 
spells, conceding 27 and 21 runs respectively in their first six 
overs. The run rate started to slacken after Razzaq and Mushtaq 
were brought on. In the 23rd over Razzaq had Wishart caught at mid-
wicket by Younis Khan to break the opening stand. Wishart made 45 
off 69 balls with three fours.

The next to go was Stuart Carlisle when Arshad forced him back and 
bowled him for five. Not much later Arshad took a catch off Mushtaq 
Ahmed at short mid-wicket to dismiss Johnson who made an attractive 
43 off 94 balls with four fours.

Andy Flower and Goodwin came together in a fourth wicket stand of 
59. Goodwin was caught by substitute Shoaib Malik at short third 
man off a top edge as he went for a big hit for 35. Arshad, bowling 
a tight line, plucked a catch off his own bowling when Andy Flower 
was 31. 

*From 177 for three in the 44th over, Zimbabwe failed to force the 
pace as they kept on losing wickets at regular intervals.

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