------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 3 June 2000 Issue : 06/21 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Day-to-day hearing in plane case from 12th + Nawaz, Saif indicted in helicopter case + Traders' strike enters 5th day + Musharraf renews talks offer to India + President issues ordinance: Corrupt civil servants to be removed + All grades included: Suspended CBR officials' list released + Shaukat on new measures: More taxes to come under SAS + Traders' stand is weak, says Moin + Top judges to face Ehtesab + Officials can be retired after 25-year service + Oil, gas discovered in Potohar + US missile system: Arms race risk among China, Pakistan, India + Devolution of power: Provincial autonomy not to be affected: CE + Army to assist in tax compliance + Punjab wants wheat dues paid + Anti-Terrorism Act amended + Budget on 17th June, says Shaukat --------------------------------- BUSINESS & ECONOMY + LSE sets deadline for defaulting brokers + Pakistan to export 1 million ton wheat + New trade policy urged to meet global challenges + Black money growing fast + SBP keeps strict watch on forex market + Pasha committee gives formula for cut in budget deficit + IMF okays reform agenda + More time for filling tax survey forms + Presumptive tax: CBR not to reopen cases + Unofficial band revised: Dollar rises in inter-bank market + 5% growth rate projected for next year + $ trades in new band + Karachi Stocks plunge --------------------------------------- EDITORIALS & FEATURES + The educated of Sindh Ardeshir Cowasjee + The more things change Ayaz Amir ----------- SPORTS + Pakistan crush Bangladesh by 233 runs + Qayyum says Pakistan team now free of match-fixing + Adams leads West Indies to a dramatic series triumph + Asian teams threaten to boycott ICC trophy

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NATIONAL NEWS
20000603
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Day-to-day hearing in plane case from 12th
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By Sarfaraz Ahmed

KARACHI, June 2: The Sindh High Court on Friday admitted for
regular hearing state appeals seeking enhancement of sentence of
deposed prime minister Nawaz Sharif and challenging the acquittal
of six others in the plane hijacking case.

Headed by Chief Justice Syed Saiyed Ashhad, the full bench also
ordered the issuance of non-bailable arrest warrants for Shahbaz
Sharif, Saifur Rahman, Ghous Ali Shah, Saeed Mehdi, Shahid Khaqan
Abbasi and Rana Maqbool. Earlier on May 26, the SHC had reserved
judgment after hearing arguments from both sides.

The court would start regular hearing from June 12. Proceedings
would be held daily with no adjournment.

The court said the Supreme Court had laid down principles in the
cases of maximum punishment and added that it would examine under
what circumstances a lesser punishment was awarded.

In its ruling on the appeal seeking enhancement of sentence of
Nawaz Sharif, the court observed that the law was clear on the
point that where an offence was punishable with death or life
imprisonment, then the normal sentence to be awarded was death
sentence.

"In awarding the lesser sentence of imprisonment for life, the
court has to give reasonable, satisfactory and plausible grounds
for not awarding the maximum sentence of death, and that in the
absence of any reasonable, satisfactory and plausible grounds
having been mentioned by the trial court for awarding the lesser of
the two sentences, trial court cannot be said to have discharged
the responsibility which lays on it in awarding the proper and
correct sentence on finding a person guilty of an offence
punishable with death or imprisonment for life," the court ruled.

It observed that the cases of Manzoor Ahmed v the State (1999 SCMR
132), Sharafat Ali v the State (1999 SCMR 329); and Mohammad Aslam
Sajjan v Liaquat Ali and others (1998 SCMR 1555) could be referred
to. And in all those cases the accused were tried for the offence
of murder punishable with death or imprisonment for life.

The trial court on finding respondent Nawaz Sharif guilty had
awarded him life imprisonment, the SHC said and added that the
Supreme Court, while hearing the appeals filed by the accused
challenging their conviction and award of sentence of life
imprisonment, had observed that the normal and ordinary sentence
for the offence of murder was death sentence, and life imprisonment
was to be awarded if some mitigating circumstances were made out,
justifying the award of the lesser sentence.

"We are mindful of the fact that in all afore-cited cases, the
Supreme Court was dealing with the offence of murder and not with
offence of hijacking," the court said.

However, it added, the principle involved in awarding the sentence
where the law provided for a particular offence would be applicable
to all such offences which had been made punishable by two
different sentences.

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20000603
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Nawaz, Saif indicted in helicopter case
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ATTOCK, June 2: A National Accountability Court in Attock Fort
indicted Nawaz Sharif and Saifur Rehman on Friday in the helicopter
case and summoned evidence for June 9. The punishment of the
offences, if proved, is 14 years' rigorous imprisonment.

Nawaz Sharif was charged under Section 10 of the National
Accountability Bureau (NAB) Ordinance read with section 9 (a)(5)
and Saif was charged with aiding and abetting Nawaz Sharif in the
crime.

Judge Farrukh Latif read out the four charges framed against Nawaz
Sharif and his co-accused Saifur Rehman, and asked them whether
they pleaded guilty or not guilty. Nawaz Sharif and Saifur Rehman
started casting aspersions on the system of justice and accusing
the NAB. They said everything in the reference was cooked up
against them.

The judge asked both the accused again and again if they pleaded
guilty or not guilty. Recording the statement of the accused
afterwards, the judge assumed that they were pleading not guilty.

Earlier, the defence counsels filed three applications seeking
adjournment on different pretexts. First application was filed by
Advocate Malik Manzoor, saying that since he had joined the case on
Friday, he might be given time to consult his client.

The judge rejected the application, observing that it would happen
every time a new lawyer joined the case. Already three adjournments
had been given on this ground, he added.

Another application put forward by the defence was about the
documents attached with the reference, which, according to the
defence counsels, were not legible.

The prosecution informed the court that a few of said documents
were fax copies and they had faded with the passage of time.
However, they said, the documents that were photocopied would be
provided to the defence again.-APP

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20000603
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Traders' strike enters 5th day
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By Our Staff Reporter

KARACHI, June 2: Traders continued to show their resentment against
the tax survey by keeping their businesses closed on the fifth day
of the strike. The strike was called by various trade bodies and
All Pakistan Organization of Small Traders and Cottage Industry
(APOSTCI).

All main markets and shopping centres remained shut while in some
areas like Gulshan-e-Iqbal, Nazimabad, Water Pump F.B. Area -
traders observed partial strike. Members of Karachi Electronic
Dealers Association (KEDA) in Saddar area continued their business
as usual.

However, the tax survey forms are being normally distributed by tax
officials to industrial, commercial offices and residential areas
as the strike did not deter their working.

APOSTCI, which had planned to hold protest rally at Empress Market,
was not allowed by the law enforcement agencies. These agencies
kept the association's chief Umer Sailya under house arrest and
restricted him to hold protest rally.

However, APOSTCI's members managed to hold the rally at Lal Masjid
at Boulton Market followed by rallies at Jinnah Road Quetta,
Masjid-e-Shuhada at Lahore and Mohabbat Khan Masjid at Peshawar,
claims Umer Sailya in a press statement.

He also claimed that around 73 traders had been arrested during the
protest rallies at various places in the country.

Sailya again urged the government to hold negotiations without any
further loss of time so that the economic stability could be
restored. He, through a press release on Friday, again reiterated
his decision to continue complete shutter down on Saturday and
Sunday.

According to convener, Imran Saeed, Karachi Tajir Action Committee,
all the major markets like Tariq Road, Bahadurabad, Hyderi, Saddar,
jewellery markets, tyre markets, paper market, pan mandi, Babar
Market Landhi, Khori Garden remained shut throughout the day.

"We will not accept the survey forms without taking traders into
the confidence," he said adding we will continue to observe shutter
downs.

Acting President, Federation of Pakistan Chambers of Commerce and
Industry (FPCCI), Sardar Raza Mohamamd urged the chief executive to
hold talks with representatives of small traders so that they could
end their strike.

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20000601
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Musharraf renews talks offer to India
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ISLAMABAD, May 31: The chief executive, Gen Pervez Musharraf, made
a fresh offer to India on Wednesday to resume talks to settle the
Kashmir issue.

"I am trying to say that I am prepared to go anywhere, travel
anywhere and meet the Indian leadership at any time to start the
dialogue to reduce tensions, to bring permanent peace to this
region," he said in a programme aired live by CNN. "I am a man of
peace, irrespective of the fact that I don a uniform."

The CE stressed the need for mediation by the United Nations or any
other third party because "bilateralism has failed" between
Islamabad and Delhi. But he said he was open to bilateral dialogue
"if it suits India", which has rejected all proposals of a third-
party involvement in Kashmir. "There is no terrorism going on in
Kashmir, it's a freedom struggle," Gen Musharraf said. "People have
risen against India, let that be very clear."

Indian occupation troops, he said, were committing atrocities and
violating human rights in fighting a decade-old freedom struggle in
Kashmir. Pakistan, he pointed out, wanted a reduction of such
violations and tensions.

India and Pakistan, he stated, ought to be responsible and
"initiate a dialogue as soon as possible" to avoid a Kargil-like
situation.

He maintained that Pakistan was not engaged in an arms race with
India despite Delhi's recent 28 per cent increase in its defence
budget.

But Pakistan would never allow its security to be compromised and
would maintain a "minimum deterrence level," he declared.

He said Pakistan was concerned about its security but would not
need a substantial increase in the defence budget to meet a minimum
deterrence level. "Pakistan's economy within the present state also
can certainly afford what we are spending on defence," he said.

The CE pledged to restore civilian rule before Oct 12, 2002, in
line with a verdict by the Supreme Court. The apex court had given
his government a three-year timeframe to leave office, Gen
Musharraf told the 20th anniversary programme of Cable News
Network.

He said Pakistan was fully conscious of its position vis-a-vis
nuclear weapons. "This is a huge responsibility on our shoulders
and let me assure the world that we will discharge our
responsibility sincerely."

In reply to a question, he said: "We are not entering into any kind
of race with India, and I have brought all nuclear assets under an
excellent command and control arrangement." He said Pakistan's
nuclear capability was purely for self-defence and the country had
no aspirations for world power status.-Agencies

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20000528
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President issues ordinance: Corrupt civil servants to be removed
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Rafaqat Ali

ISLAMABAD, May 27: The federal government on Saturday promulgated
an ordinance, empowering the chief executive to dismiss, remove or
send on premature retirement the civil servants involved in
corruption or even having a bad reputation.

The "Removal from Service (Special Powers) Ordinance, 2000" says
the competent authority, after inquiry by a committee, can dismiss,
remove, compulsorily retire or relegate an official to a lower post
or pay scale, or impose one or more minor penalties if he is
inefficient, corrupt or involved in subversive activities.

The competent authority under the law is the chief executive, or an
officer authorized by him. The person against whom the action has
been initiated will be required to appear before an inquiry
committee.

He/she will be able to file a review appeal before the chief
executive within 15 days and also approach the federal service
tribunal for redressal of his grievance.

Action against the civil servants will be taken after informing him
of the reasons and giving him opportunity to show cause within 15
days.

He will be proceeded against if he is: a) inefficient, or has
ceased to be efficient for any reasons; b) guilty of misconduct; c)
corrupt, or may reasonably be considered as corrupt; d) engaged, or
is reasonably believed to be engaged in subversive activities, and
his retention in service is prejudicial to national security, and
or he is guilty of disclosure of official secrets to any
unauthorized person; and, e) found to have been appointed or
promoted on extraneous grounds in violation of law and the relevant
rules.

A corrupt official has been defined as "he or his dependent(s) or
any other person, through him, or on his behalf, is in possession
of pecuniary resources or of property, for which he cannot
reasonably account for and which are disproportionate to his known
source of income, or has assumed a style of living beyond his known
sources of income."

An official against whom action is proposed can be placed under
suspension with immediate effect. The competent authority can, in
an appropriate case, for reasons to be recorded in writing, instead
of placing an official under suspension, order to proceed on such
leave as may be admissible to him.

The CE can constitute one or more inquiry committees to scrutinize
the conduct of a person in government or corporation service, or a
person in corporation service who is alleged to have committed
corruption, has a bad reputation or is involved in subversive
activities.

The committee after providing reasonable opportunity of hearing,
will give recommendation to the competent authority within 30 days
regarding the punishment or other appropriate action.

The committee, however, can refuse to provide opportunity of
hearing if it is satisfied that such an opportunity is not in the
interest of the security of Pakistan.

The inquiry committee will have powers to summon and enforce
attendance of any person and examine him on oath; b) to require the
discovery and production of any document; c) to receive evidence of
affidavits; and, d) to record evidence.

The inquiry committee will have power to regulate its own
procedure, including the fixing of place and time of its sitting
and deciding whether to sit in public or in private, and in the
case of corporate committee, to act notwithstanding the temporary
absence of any of its members.

Every finding and recommendation recorded by the inquiry committee
will be submitted to the competent authority and the competent
authority may pass such order if he deems it proper.

A person who has been dismissed or removed or compulsorily retired
from service or reduced to a lower post or pay scale or against
whom any order has been made, may, within 15 days from the date of
communication of the order prefer a representation to the CE or an
authorized officer.

Provided that where the order has been made by the CE such person
may, within 15 days, submit a review petition to the CE.

The chief executive, or an officer on authority, may, on
consideration of the representation, confirm, set aside, vary or
modify the order in respect of which such representation or review
petition is made within 60 days.

Any official aggrieved can file an appeal against the order of CE,
within 30 days, in the federal service tribunal.

The provisions of this ordinance shall have effect, notwithstanding
anything to the contrary contained in the Civil Servants Act, 1973
(LXXI of 1973), and the rules made thereunder and any other law for
time being in force.

All proceedings initiated on the commencement of this ordinance in
respect of matters and persons in service, provided for in this
ordinance, shall be governed by the provisions of this ordinance
and rules made thereunder.

The law has provided that all proceedings pending immediately
before the commencement of this ordinance against any person
whether in government service or corporation service under the
Civil Servants Act, 1973 (LXXI of 1973) and rules made thereunder,
or any other law or rules shall continue under the said laws and
rules, and as provided thereunder:

Notwithstanding anything contained in this Ordinance the payment of
pension or other benefits to a person retired or reduced to a lower
post or pay scale under this Ordinance shall, if admissible, be
regulated in accordance with the law for the time being in force
relating thereto.

The federal government can, by notification in the official
Gazette, make rules for carrying out the purposes of this
Ordinance.

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20000529
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All grades included: Suspended CBR officials' list released
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Ikram Hoti

ISLAMABAD, May 28: The Central Board of Revenue on Sunday suspended
for six months the services of its 1,040 employees on charges of
corruption and inefficiency. The suspended employees belong to all
grades - from grade 1 to 21.

The grade 21 officials were: Abrar Ahmad Khan, member of the Income
Tax settlement commission, Karachi; Tahir Latif Sheikh, officer on
special duty, CBR; and Nazir A. Saleemi, OSD.

Seventeen officials of grade 20 were: Sultan Ahmad, commissioner of
IT (Appeals-V), Karachi; Yousuf Sharih, commissioner of IT
(Appeals) Multan; Sheikh Ihsan Ilahi Tariq, commissioner of IT
(Appeals-V), Lahore; Saadat Saeed, commissioner of IT, Companies
zone-III, Karachi; Munir Ahmad Sheikh, commissioner of IT,
Companies zone-1, Lahore; Mukhtar Ahmad Gondal, OSD, Training &
Research (IT), Lahore; Nawal Raj N. Oad, OSD, CIT, Sukkur; Umar
Khan Mohmand, CIT (Appeals-II), Peshawar; Mohammad Aslam, OSD in
CBR, Islamabad; Khawar Khursheed Butt, CIT, zone-B, Lahore; Qadirul
Jalil, CIT, Companies, zone-II, Lahore; Raja Sikandar Khan, CIT,
Sialkot zone; Masood Ali Jamshed, commissioner of IT, Companies
zone, Faisalabad; Sardar Irshad Shaheen, commissioner of IT,
Sargodha zone; Abdul Munim Jafri, commissioner of IT, Companies
zone-V, Karachi; Zaheer Ali Shah, commissioner of IT, zone-E,
Southern Region, Karachi.

There were 27 grade-19 IT officials: Sartaj Yousuf Mohmand, OSD,
Corporate Region, Karachi; Mohammad Arif Khan, OSD, directorate of
inspection (Direct Taxes), sub-office, Bahawalpur; Sajjad Haider
Afzal, OSD, directorate of inspection (DT), Karachi; Inayatullah
Kashani, OSD, directorate of inspection (DT), sub-office,
Gujranwala; Mushtaque Hussain Qazi, OSD, Southern Region, Karachi;
Masood Akhtar Shaheedi, inspecting additional commissioner,
Northern Region, Islamabad; Shaukat Ali Soomro, Ali Akbar Deepar,
Bakht Zaman Khan and Amjad Malik, IAC/departmental representatives,
Corporate Region, Karachi; Shahid Nadeem, inspecting additional
commissioner (IAC), Southern Region, Karachi; Sardar Munawwar
Zaman, OSD of Corporate region, Karachi; Mushtaq Ahmad Sehto, IAC,
Southern Region, Karachi; Sikandar Aslam, IAC, Southern region,
Karachi; Noorul Amin Hatiana, IAC, Eastern Region, Lahore; Mohammad
Asif Hashmi, IAC, Eastern Region, Lahore; Naseer Ahmad, and
Mohammad Zulfiqar Ali, both IACs, Eastern Region, Lahore; Mohammad
Aslam Gohar Baluch, additional director inspection (DT), Karachi;
Soulatr Nasir Pasha, IAC, Northern Region, Islamabad; Bandah Ali
Memon, assistant director of inspection, DT, Hyderabad; Anwar Ali
Shah, additional director of inspection (DT, Lahore; Shahid Zaman,
IAC, Central Region, Multan; Sajjad Ahmad, IAC, corporate region,
Karachi; Yousuf Ghaffar Khan, IAC, Northern Region, Islamabad;
Saeedullah Khan, IAC, Northern Region, Islamabad; and Mohammad
Iqbal Khan, IAC, Corporate Region, Karachi.

Ijaz Ali Shah, a Customs Group officer, appointed by Chief
Executive on Friday to inquire into the import of contaminated palm
oil case involving chairman CBR, Riaz Hussain Naqvi, has been
suspended from service.

His other colleagues, suspended from service here on Sunday are:
Raja Tahir Majeed, secretary CBR, Liaqat Agha, OSD; Jawaid Zia
Qazi, OSD; Siddiq Mirza, assistant collector; Atta Malik, Assistant
Collector; Malik Khalid, Aziz Ahmad additional collector, Karachi;
Shafqat, additional collector; Khwaja Tanveer, Ali Mohammad Sheikh
OSD; Nadir Hoti, Chief of Customs Rebate, CBR; Wadood Khan,
collector Lahore; Khalid Bashir, additional collector; Shaukat
Bhatti, collector Lahore; Hussain Ahmad Shirazi, grade-20,
Islamabad; Iftikhar Tabassum, collector Lahore (now OSD); Azhar
Iftikhar, Chief ST Policy, CBR; Liaqat Ali Agha, collector Karachi
(now OSD); Ali Mohammad Sheikh, collector Multan (now OSD).

Grade 18 Income Tax officials suspended include: Shehr Bano Walaji;
Shafqat; Razzaq Dhanwar; Raheem Soomro; Manzoor Haider Zaidi
Bahtiar; Rai Talat; Shams Hadi and Rukhsana Saeed.

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20000602
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Shaukat on new measures: More taxes to come under SAS
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Reporter

KARACHI, June 1: Minister for Finance Shaukat Aziz said on Thursday
that the government would be introducing wide range of tax
measures, including introduction of self-assessment scheme (SAS)
for filing of other categories
of taxes and reduction in number of provincial taxes.

Addressing business leaders during his visit to Institute of
Textile Technology and Management (ITTM) he, while justifying the
need of tax survey, said that the country could not be run with a
huge budget deficit running up to Rs180 billion.

After introducing SAS for filing of return of other taxes, 20 per
cent of cases will be picked up at random for detailed audit and
scrutiny, as had been done in income tax. However, Shaukat Aziz
said that a choice would be given to a taxpayer to accept official
audit or select one from 20 audit firms approved by the government
for which the cost would be shared equally by both the sides.

The minister said the government had been working on the
multiplicity of taxes and is going to reduce 22 provincial taxes to
nine in the next budget (2000-2001).

Shaukat Aziz said a tracking system will also be introduced in the
next budget so that sales tax refunds were promptly paid and for
duty drawback it would be best that no duty no drawback' system was
introduced for eliminating corruption and false claims.

He assured that all the decision and understandings reached with
business community on tax survey and other matters would be given
legal cover. "I will ask you to forget about the past and start
afresh as no case will be reopened because the government intends
to issue notifications in a day or two," Shaukat Aziz affirmed.

He pointed out that the government had already given concessions
and incentives by withdrawing sales tax penalty, additional tax and
reduction in income tax but still we would relax tax related laws
by giving more concessions in the forthcoming budget 2000-2001.

Shaukat Aziz said that action would be taken against more corrupt
officials because the government would like to plug revenue
leakages which were to the tune of Rs150 billion. "Instead of
giving this amount in tax compliance why don't you give the amount
to the government which will help in overcoming the revenue
problem." he asked the businessmen present on the occasion.
Responding to a point raised by an industrialists, he said that
there was not much problem in surveying the industrial units where
there could be only a problem of under assessment. The industry,
Shaukat Aziz said, by and large the industry is documented
therefore, we do not feel that special form was needed for its
survey.

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20000602
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Traders' stand is weak, says Moin
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Correspondent

LAHORE, June 1: The interior minister, Lt-Gen Moinuddin Haider,
said the traders had a weak legal and moral stand on the issue of
tax survey and the government would not budge from its principled
stand.

He observed that by resorting to strikes traders were losing more
than they would if they paid taxes. He added that the earlier the
traders accepted the reality, the better.

The minister stated 50,000 forms had so far been distributed in the
13 cities that were being subjected to survey at present and the
government was making more arrangements to provide keen traders
with forms. People, he said, would also be eligible to collect
forms directly from the offices nominated by the government.

As for the traders' point of view, the minister said the government
was already aware of it as talks with them had been going on for
the past five years. The new survey forms, he pointed out, had been
designed in view of the difficulties mentioned by the traders.

The minister denied the accusation that tax money was going into
the pockets of corrupt officials.

  If everybody paid tax according to his assessment, no official
could extort money from them, he argued. He said over 1,000 corrupt
officials had already been removed and the 'clean-up' operation
would continue till all departments were purged of such elements.

He said tax structure was being improved and a number of steps in
this regard would be announced in the next year's budget, adding
that a World Bank representative had been entrusted with the
matter.

WAPDA BILLS: The minister said the Inter-Provincial Coordination
Committee (IPCC), which had met in Islamabad on Tuesday, had
decided that the provinces should clear their current Wapda bills.
As for the outstanding bills, he said, a decision on them would be
taken in three months' time through judicial arbitration or by a
committee under the chairmanship of the finance minister, the
composition of which was acceptable to all provinces.

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20000602
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Top judges to face Ehtesab
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Rafaqat Ali

ISLAMABAD, June 1: The government has decided to start
accountability of the members of the superior judiciary, and will
hand over evidence of corruption by them to the chief justice of
Pakistan, Dawn has reliably learnt.

After scrutinizing the evidence, Chief Justice Irshad Hasan Khan
would call the concerned judge and confront him with the charge. If
the judge agreed to resign, then no action would be initiated. But,
in case he disputed the evidence and showed eagerness to clear his
name, then the case would be referred to the Supreme Judicial
Council by the President.

"We will hand over all the evidence against the judges to the Chief
Justice and if he is satisfied, only then the proceedings will be
initiated under Article 209 of the Constitution," a source said.

He explained that the move was not aimed at victimizing the
judicial institution and was, in fact, being done on the insistence
of the judiciary itself.

Soon after taking over as chief justice, Chief Justice Irshad Hasan
Khan had laid emphasis on the accountability of the judiciary, and
repeatedly said the process could be started only under the
existing constitutional mechanism.

The CJ had also activated the Supreme Judicial Council and held its
first meeting after nine years. The Constitution provided for the
establishment of the SJC for the accountability of judges. However,
the SJC remained dormant for most of the time as only four cases
were referred to it over the last 52 years.

The existing mechanism for accountability of judges is laid down in
Article 209, which provides for an SJC, comprising five judges,
headed by the chief justice. In case of charges against a member of
the SJC itself, the judge next in line in terms of seniority is to
take his place.

The only cases referred to the SJC so far involved Justice Sheikh
Shaukat Ali and Justice Ikhlaq of the Lahore High Court, and
Justice Fazle Ghani and Safdar Ali Shah of the Supreme Court. No
case has been sent to the SJC for the last two decades. The
superior judiciary consists of Supreme Court, Federal Shariat
Court, and the four provincial high courts.

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20000602
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Officials can be retired after 25-year service
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Ansar Abbasi

ISLAMABAD, June 1: The President on Thursday promulgated an
ordinance to amend Civil Servants Act, 1973, paving way for
premature retirement of inefficient officials on completion of 25
years of service.

The ordinance, called Civil Servants (Amendment) Ordinance, 2000,
substituted section 13 of the Act, empowering the competent
authority to retire any official who has already completed 25 years
of service.

A spokesman for the establishment division when contacted explained
that the amendment was aimed at getting rid of "dead wood" from
within the bureaucracy. He said those officials who would be
considered inefficient and had completed 25 years of service could
be retired by the competent authority after issuance of show-cause
notice.

The civil servant will, however, be given in writing the reasons
for his compulsory retirement. He said this amendment would only
target the inefficient officials and not the corrupt bureaucrats
who had been covered exclusively under the ordinance issued on May
27.

The amended ordinance substituted section 13 of the act with the
following sections:

"13. Retirement from service:- (1) A civil servant shall retire
from service:- (i) on such date after he has completed twenty-five
years of service qualifying for pension or other retirement
benefits as the competent authority may, in public interest,
direct; or (ii) where, no direction is given under clause (i), on
the completion of the sixtieth year of his age.

"(2) No direction under clause (i) of sub-section (1) shall be made
until the civil servant has been informed in writing of the grounds
on which it is proposed to make the direction, and has been given a
reasonable opportunity of showing cause against the said
direction."

The chief executive is the competent authority in case of officers
in grade 20 and above. In grades 16-19, the competent authority is
the secretary of the concerned division or head of department,
subordinate office or organization. For grades 1 to 15 officials,
the competent authority is an officer nominated by the secretary of
the division/head of the organization.

The spokesman said a similar provision had been present in the law
during mid-70s but it did not contain the condition of issuing
show-cause notice. The provision, he said, was scrapped after a
court declared it un Islamic.

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20000531
-------------------------------------------------------------------
Oil, gas discovered in Potohar
-------------------------------------------------------------------
Correspondent

ISLAMABAD, May 30: Federal Minister for Petroleum and Natural
Resources Mr Usman Aminuddin said here on Tuesday that oil and gas
was discovered in Pariwali area of Potohar region by Pakistan Oil
Filed Limited (POFL).

The discovery was made at Well No. 3 of Pariwali. The minister
termed it a significant find because this proves Dhak Pass
Formation bears oil and gas.

He said the new discovery would save a sum of US $50 million
annually.

During production test at 40/64 choke the well flowed 2500 barrels
per day of oil and 8.3 MMSGFD of gas at a flowing pressure of 1000
PS1. The gravity of oil is 39.2 degree AP1.

Pariwali field was discovered by POFL in 1994 after side tracking
of original Pariwali Well No. 1 drilled by the then joint venture
operator M/s Occidental to a depth of 15,264 feet in Sakesar
Formation of Eocore age.

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20000529
-------------------------------------------------------------------
US missile system: Arms race risk among China, Pakistan, India
-------------------------------------------------------------------
Masood Haider

NEW YORK, May 28: The United States intelligence officials have
warned that if US decides to build a limited national missile
defence system "it could set off a cold-war-style arms race between
China, India and Pakistan".

In a front-page lead report the New York Times says "while the
American officials have repeatedly said an anti-missile defence is
not aimed at Beijing, even they acknowledge that the system being
designed could significantly undercut or even neutralize China's
small nuclear force.

"That could lead China to add to its nuclear arsenal. And if China
built up its force, its regional rival India could do the same, as
could India's rival Pakistan, heightening tensions along the
world's newest nuclear frontier,' the paper said.

The Times says that "such a scenario, which officials are expected
to outline for President Clinton in an official intelligence
estimate due in June, has raised questions about the
administration's own efforts to try to slow the spread of nuclear
weapons and the ballistic missiles needed to launch them.

"If China increases the number of missiles it has, would India
think it has to increase its missiles?" said a senior United States
official familiar with the analysis being prepared. "And if India
increases its missiles, then Pakistan does."

President Clinton has said he plans to decide later this year
whether to proceed with a missile defence based on four criteria:
the missile threat, technological viability of the program, the
effect on arms control and cost.

The response from China and Russia is an important factor in Mr.
Clinton's decision.

The NYT notes that "China's expanded force of nuclear-tipped long-
range missiles might not be directed at India, they say. But it
would be a capability that the Indians could not ignore, and as a
result India might build up the short-range missiles it used to
defend against China. "

It says that "Administration officials are divided over whether
India would respond in such a way, but the emerging analysis has
dramatically raised the stakes.

"Seeking to balance its concerns over stability in South Asia with
its interest in missile defence, the Clinton administration is
likely to redouble its negotiating efforts with the Chinese and
perhaps even explore new forms of arms control with Beijing. By all
accounts, however, Washington has a difficult job ahead, the paper
said.

"The basic point we have made is that a missile system is not aimed
at them, that we are comfortable with deterrent relationship with
China," a senior Clinton administration official told the Times.

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20000530
-------------------------------------------------------------------
Devolution of power: Provincial autonomy not to be affected: CE
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, May 29: The chief executive, Gen Pervez Musharraf, said
here on Monday that, contrary to speculation by some quarters, the
devolution of power plan in no way impinged upon provincial
autonomy to which the government was fully committed.

Presiding over the first meeting of the governors' committee on
devolution of power and responsibility, he directed the governors
to constitute provincial task forces on devolution of power, to be
headed by them, and to include provincial ministers, respective
chief secretaries and some other members.

The chief executive stressed upon the need for a new relationship
between the districts and provinces, preparation of new rules of
business, preparation for provincial financial awards to the
districts, and training of district government officers.

The committee has been set up with an aim at laying the foundation
of genuine democracy in the country.

In his opening remarks, the chief executive dwelt at length on
devolution of power and responsibility. He said devolution of power
was an important decision for the benefit of the people.

He said the concept envisaged empowering the impoverished people of
the country, making them masters of their own destiny,
subordinating government functionaries to the people, granting
financial autonomy to the local governments, making them capable of
generating their own resources, working out of provincial financial
awards to the districts, and provision of speedy justice at the
doorsteps of the people.

He said the governors committee and the cabinet committee on
devolution should be merged and should meet once a month to analyze
the devolution plan, provide feedback and inputs to finalize the
plan, which would be announced by him on August 14.

The chief executive directed the governors to keep the people
informed about the devolution plan through regular media briefings
and meetings.

The chairman of the National Reconstruction Bureau, Lt-Gen Syed
Tanvir Hussain Naqvi (retd), later gave a detailed presentation to
the participants regarding the proposed plan for devolution of
power.

Gen Musharraf informed the participants that a media campaign aimed
at inviting suggestions for improvements in the plan had been
launched through the print and electronic media.

The meeting was attended by the governors of the four provinces,
the ministers for local government, the minister for Kashmir
Affairs and Northern Areas, adviser to the chief executive on
national affairs and information, respective corps commanders, the
chairman of the National Reconstruction Bureau and other senior
civil and military officials.

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20000601
-------------------------------------------------------------------
Army to assist in tax compliance
-------------------------------------------------------------------
Correspondent

ISLAMABAD, May 31: Assistance of army officials and personnel would
also be acquired for ensuring tax-compliance after the submission
of business and assets details through survey forms.

This was stated here on Wednesday by Chief GST, CBR, Iftikhar
Qutab, who is also monitoring the performance of the survey teams
throughout the country on daily basis. Briefing newsmen about the
performance of the survey teams so far, Mr Qutab said the CBR has
not been expecting that there would be a distribution of 31,000
forms in only four days.

When asked how would the CBR ensure compliance on declarations made
by those submitting their turnover, property, assets and income
details, especially in the areas declared as "problem areas" by the
CBR, Mr Qutab said: The government is evolving a mechanism to
involve the army officials and personnel also for ensuring that
those declaring their taxable incomes etc through the survey forms,
do not deviate from their declarations. The compliance from the
declarants in this connection would be a problem area. But we are
making efforts to make sure that the opportunity of having data on
the economy in such a thorough manner does not go waste due to poor
compliance.

Qutab added that the army's assistance would be acquired in the
post survey period for maintaining surprise checks. The declarants
would be visited, as authorised by the survey-related Presidential
Ordinance issued last week, for exact details on compliance by a
declarant.

He also informed newsmen that the government had, initially,
decided top issue national tax number within 48 hours of the
submission of the filled-in survey form by a declarant. "But now we
are even in the process of deciding that the NTN be issued the
moment a declaration through the survey form is made.

Qutab said that the majority of the forms recipients during May 27-
29 were from the business sector while about 44 percent of them
were residential. A total of 13,703 forms were distributed on May
31, 2000. Out of these, 6008 were residential and 7694 business. On
May 30, total forms distributed were 12518. Out of these, majority
were business. On May 29, 9298 forms were distributed (5218
business and 4056 residential), while on May 27 (May 28 being
Sunday), the total forms distributed were 6966 (breakdown not
given).

Qutab said the intelligence agencies havealready gathered data on
government officials' properties , assets and incomes coming from
un-declared sources. This data would be verified through the
currently conducted survey. He, however, desisted from replying as
to how the government would be confirming that the relative or
front-man of a government official owning a property/business in
fact benefits a certain official, as a source of income.

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20000528
-------------------------------------------------------------------
Punjab wants wheat dues paid
-------------------------------------------------------------------
Correspondent

ISLAMABAD, May 27: The federal government has directed the NWFP,
Sindh and Balochistan governments to immediately arrange payment of
Rs2.4 billion to the Punjab on account of wheat they had purchased
to meet their food needs during the last couple of months.

Official sources told Dawn here on Saturday that the provincial
governments, however, expressed their inability to pay the amount,
saying "they are facing serious financial crunch and cannot at
present pay the money to the Punjab government."

The sources said that the federal minister for food, agriculture
and livestock, Dr Shafqat Ali Shah Jamote, had, however, assured
the Punjab Governor, Mohammad Safdar, that these provinces would
soon release the outstanding money.

The sources said that earlier the Punjab government, in a letter to
the federal government, had asked it to direct the three provincial
governments to pay their dues of Rs2.4 billion immediately on
account of sale of 2500,000 metric tons of wheat during the last
couple of months.

The sources said that the Punjab government had also asked the
federal government to play the role of a "guarantor" and help the
provincial government recover its outstanding amount.

The issue of the recovery of the outstanding amount was raised
during an inter-provincial ministerial meeting recently held and
presided over by Dr Jamote. The Punjab representative pointed out
that the province was promised early release of the funds by the
provinces, but so far, it regretted, Punjab had not received money
from the three provincial governments.

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20000602
-------------------------------------------------------------------
Anti-Terrorism Act amended
-------------------------------------------------------------------

ISLAMABAD, June 1: President Rafiq Tarar on Thursday amended the
Anti-terrorism Act, 1997, by promulgating an ordinance. The
ordinance called Anti-terrorism (Amendment) Ordinance, 2000, shall
come into force at once. It shall be deemed to have taken effect
from the date of the commencement of ATA, 1997, (XXVII of 1997).

The ordinance reads: "Further to amend the Anti-terrorism Act,
1997; whereas it is expedient further to amend the Anti-terrorism
Act, 1997 (XXVII of 1997), for the purposes hereinafter appearing;

And whereas the National Assembly and the Senate stand suspended in
pursuance of the Proclamation of the Emergency of the fourteenth
day of October, 1999 and the Provincial Constitution Order No 1 of
1999;

And whereas the President is satisfied that circumstances exist
which render it necessary to take immediate action;

Now, therefore, in pursuance of the Proclamation of Emergency of
the fourteenth day of October, 1999, and the Provincial
Constitution Order No.1 of 1999, as well as Order No 9 of 1999, and
in exercise of all powers enabling him in that behalf, the
President of the Islamic Republic of Pakistan is pleased to make
and promulgate the following Ordinance:

1. Short title and commencement: (1) This Ordinance may be called
the Anti-terrorism (Amendment) Ordinance, 2000. (2) It shall come
into force at once and shall be deemed to have taken effect from
the date of the commencement of Anti-terrorism Act, 1997 (XXVII of
1997).

2. Amendment of Section 18, Act XXVII of 1997: In the Anti-
terrorism Act, 1997 (XXVII of 1997), hereinafter referred to as the
said Act, in section 18, in sub-section (1), after the word "Court"
the words "or a High Court and Supreme Court of Pakistan" shall be
inserted and shall be deemed always to have been so inserted from
the date of the commencement of the said Act.

3. Amendment of Section 25, Act XXVII of 1997: In the said Act, in
section 25, in sub-section (4), after the words "Attorney General",
the words and commas "Deputy Attorney General, Standing Counsel"
and after the words "Advocate General" the words "or an Advocate of
the High Court or the Supreme Court of Pakistan appointed as Public
Prosecutor, Additional Public Prosecutor or a Special Public
Prosecutor" shall be inserted and shall be deemed always to have
been so inserted from the date of the commencement of the said
Act."-APP

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20000602
-------------------------------------------------------------------
Budget on 17th June, says Shaukat
-------------------------------------------------------------------

KARACHI, June 1: The federal budget for fiscal year 2000-2001 will
be presented on June 17, Finance Minister Shaukat Aziz said here on
Thursday.

The budget would be "positive and encouraging for investors. It
will include measures which will encourage investors and revive
their confidence, as it is very important for the country and the
economy", he said while speaking at the opening ceremony of real
time market quotations on internet at the Karachi Stock Exchange
(KSE) premises.

The minister said economic indicators for fiscal 1999-2000 were
"very positive and encouraging. GDP is expected to grow by 4.5 per
cent by the end of current fiscal year."

Mr Aziz said agriculture sector had performed well. Except for
sugar, manufacturing sector, including buoyant textile sector, had
also shown positive results, he noted.

The minister attributed the sugar industry's negative growth to bad
sugarcane crop. However, wheat registered a record production this
season. The surplus quantity would be exported, he added.

The wheat crop is expected to bring around Rs60 billion liquidity
flow into the poverty-stricken rural areas. Liquidity flow would
have major impact on poverty alleviation in the rural areas, he
stated.

He said exports would increase by 10 to 11 per cent during this
fiscal. He felt inflation will confine to four per cent, and if it
could be managed, interest rate would be lowered.

The minister said revenue collection had also improved by 17 to 18
per cent during this year and that it would rise in the next
fiscal.-PPI


=================================================================== 
 BUSINESS & ECONOMY
20000603
-------------------------------------------------------------------
LSE sets deadline for defaulting brokers
-------------------------------------------------------------------
By Nasir Jamal

LAHORE, June 2: The board of directors of the Lahore Stock Exchange
(LSE), which remained closed for yet another day Friday, has given
its six defaulting members the last opportunity to meet their
exposures by Saturday afternoon or get declared defaulters.

Acting LSE chairman Asim Zafar told this reporter after hectic
meetings spanning over 12 hours that the LSE board had decided to
give a last chance to six brokers, including Iftikhar Shafi whose
losses are said to running into crores of rupees, responsible for
the crisis to deposit funds to meet their exposures by Saturday.

"If they fail to meet their exposures, we will declare them as
defaulters and proceed against them according to the rules," said
he. He said the losses of all brokers except Shafi are manageable
and they are willing to pay the difference to meet their limits.

The exact amount of losses suffered by these brokers could not be
known though some LSE members said these ranged between Rs250-400
million.

"Now we are waiting for a response from Shafi whether he wants to
pick the shares (by paying the amount outstanding against him) or
face default. We are going to meet again at 1pm on Saturday to take
final decision after hearing Shafi's response," Zafar added,
expressing the hope that the exchange would reopen for trading on
Monday after settlement of the clearing today. In case Shafi does
not settle his deposits, he said, "the exchange has received firm
commitments from some financial institutions to buy his shares at
the prevailing market price and his clearing would be settled out
of the funds thus raised".

The crisis had erupted on Monday after LSE members working for
investor Nisar Danka crossed their exposure limits, and failed to
settle their clearing. The crisis, unprecedented in its magnitude
in history, led to its closure for two days, i.e., on Tuesday and
Friday, in one week and sudden suspension of floor trading on
Thursday.

The LSE had invited Aqeel Karim Dhedhi who is also a member of the
LSE from Karachi to broker a deal with Nisar Danka and Shafi, who
blame the changes in the exposure limits by the Karachi Stock
Exchange (KSE) for the crisis. They accuse the KSE management for
changing the limits just to damage the positions taken by them in
the issues of Adamjee Insurance, Bank of Punjab, Nishat Mills and
some other companies. However, Dhedhi, who offered the defaulting
brokers and Nisar Danka to get their shares underwritten for some
three months by financial institutions failed to convince them to
pay their dues.

Securities and Exchange Commission of Pakistan (SECP) Chairman
Khalid Mirza also arrived in the evening and went straight into a
meeting with the LSE directors to "facilitate" them to work out a
solution to the crisis. Sources in the LSE said "his presence had
helped the directors muster courage to finally ask the defaulting
members to settle their clearing or face suspension". They said the
SECP chairman had been sent to Lahore by the finance minister when
he received an SOS call from the LSE board of directors.

Meanwhile, the LSE remained tense all the day with its members
criticising the management for its failure to stop the defaulting
brokers from taking positions beyond their limits.

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20000531
-------------------------------------------------------------------
Pakistan to export 1 million ton wheat
-------------------------------------------------------------------
Correspondent

ISLAMABAD, May 30: The government in an unprecedented move here on
Tuesday announced to export one million tons of wheat, worth about
$350 million, from its two million surplus production during fiscal
year 2000-2001.

Sri Lanka and Zimbabwe have already expressed their interest to buy
the commodity from Pakistan following the reports of bumper crop in
the country.

This was disclosed by Federal Agriculture Minister Dr Shafqat Ali
Shah Jamote at a press conference in his office here on Tuesday.
The minister said: "We have produced 22 million tons of wheat
against the target of 20 million tons in 1999-2000. Thus, we have
decided to export one million tons."

Dr Jamote said priority would be given to the wheat deficient
country of Afghanistan. He added that 600,000 tons would be
exported to Afghanistan and 400,000 tons to some other countries.

Unlike the past wheat export would be on government-to-government
basis, Jamote said. He added that 40,000 to 50,000 tons would be
dispatched to Afghanistan every month.

Answering a question, Jamote said: "We will sell the commodity in
the international market, and would make it sure that our good
quality wheat gets competitive price."

The minister said so far the federal government had procured 6.5
million tons against a target of 7 million tons.

The federal and provincial agencies had been directed to purchase
the commodity from the growers without caring about their targets.

He admitted that the federal and provincial governments were facing
serious shortage of storage and jute bags as "no body was expecting
such an unprecedented bumper crop."

Dr Jamote said the centre had already issued directions to the
provincial governments to revise their procurement and storage
policies for next year to cope with the problem in future needs.

He added that the government would introduce farmers-friendly
policies to maintain the current level of production so that
sustainable results could be achieved in future.

SUBSIDY ON WHEAT: The minister said that the government this year
would not withdraw subsidy on wheat as had earlier been indicated.
The final decision to this effect would be taken next year, he
added.

FARM GROWTH RATE: The minister claimed that the agriculture sector
had registered a recorded growth rate. However, he did not give the
exact percentage of the growth saying the government was currently
engaged in compiling the production figures of different crops.

  On the agriculture income tax, Dr Jamote said the government had
so far not taken any decision.

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20000531
-------------------------------------------------------------------
New trade policy urged to meet global challenges
-------------------------------------------------------------------
Muhammad Ilyas

ISLAMABAD, May 30: Prominent economists have urged the ministry of
commerce to devise the new trade policy keeping in view the fact
that after 2005, special concessions provided to developing
countries under WTO agreements would be phased out and that their
exports need to be contended with restrictions based on non-
economic issues.

The old practice in commerce ministry of formulating the trade
policy in isolation and basing it almost exclusively on demands for
endless concessions by the businessmen and industrialists, rather
than the overall requirements of national economic development will
not work, they remarked at a seminar organized by the Foreign Trade
Institute here.

Dr Shaukat Ali of the Planning Commission noted that the maximum
tariff rate had been reduced from 120 per cent to 35 per cent over
the past decade. Besides, the government had allowed a myriad of
concessions and incentives such as duty-drawback, bonded
warehouses, export refinance etc. However, their impact on exports
had not been assessed. In the first half of 1980s, exports had
multiplied by 5.3% per annum, whereas during the last 5 years,
their growth rate had slowed to 3.5% per annum in real terms.

This proved that tariff reduction was not the only solution, he
stressed. Exports were beset with certain structural rigidities, he
said, pointing out that 75% of our exports were directed towards
only 25 countries. He suggested to the government to come out from
microhandling of individual items and declare to the private sector
the tariff regime for the next five years.

He noted that in the last 17 years, productivity of large scale
manufacturing sector had improved by only 2.4%.

As regards exchange rate changes, these too have not been used
optimally in this country. Invariably, whenever rupee was devalued,
it was not meant to give a pre-emptive edge to our exporters.
Instead, it was resorted only to compensate for inflation which
took place in the past. Thus while the inflation rate in domestic
economy was 55%, real devaluation in terms of parity purchasing
power was only 22%.

  Competitiveness had also been eroded by increase in utility
prices. Between 1991 and 1999, the manufacturing price index had
gone from 100 to 195, while the price index of raw materials soared
to 256 and that of fuels, lighting and lubricants etc peaked to
249. According to a study by the American Business Council in
Pakistan, the electricity was much expensive in Pakistan than in
USA, UK and Saudi Arabia.

Ashraf, a senior member of the commerce group, and some of his
other colleagues criticized the policy of heaping concessions on
the businessmen, out of proportion to the benefits thereof to the
economy.

Dr Aqdas Ali Kazmi, Chief of Tax Policy, Central Board of Revenue
stated that in the last 10 months, the pay-outs to businessmen on
account of duty drawback amounted to Rs40 billion, that is 16% of
total revenue receipts of Rs310 billion. One of the fundamental
reasons why exports have not picked was that Pakistan has had no
industrialization policy for the past several years. The Rs124
billion PSDP for 2000-2001 adopted recently provided only Rs7
billion or a mere 0.5% for industry.

Referring to post-2005 scenario, Dr Kazmi wondered whether commerce
ministry had done any homework for ensuring competitiveness of our
textiles against emerging competitors like Bangladesh, India,
Indonesia, Malaysia, China, Germany etc.

Dr Kazmi suggested to government to ask the private sector to
provide a major portion of the investment of Rs330 billion required
for the ministry's plan to increase exports to $14 billion in two
years. After all, the present-day textile tycoons owe their
position to the loans advanced to them by the public sector
financial years, he observed.

Ninety per cent of total trade, Dr Abdul Wahab, former Vice
Chancellor of Karachi University said, is domestic trade, the
remaining 10% being constituted by exports and imports. The trade
policy was only about the latter, while there is no attention paid
to improving the former. The former is not taken into account The
latter is stagnant because the malpractices in domestic trade seep
into foreign trade, he remarked.

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20000531
-------------------------------------------------------------------
Black money growing fast
-------------------------------------------------------------------

KARACHI, May 30: Pakistan's parallel economy has been increasing at
"an alarming rate year by year", and 'black money' circulating
within the country which was estimated at Rs 16.96 billion in 1972,
jumped to Rs 491.109 billion in 1996, with an average growth rate
of 22.93 percent.

  According to statistics with the Central Board of Revenue, taxes
amounting to Rs 202.561 billion were evaded in 1996, while the
calculated rate of tax evasion is more than 58 percent.

  The high rate of taxes and the lack of confidence among tax
collectors and tax payers is encouraging underground economy.It was
one of the root causes hampering process of development progress in
the country.

  Officials said the Tax Amnesty Scheme 2000 has been evolved in
best interest of the country and is aimed to discourage black
money. The objective of the scheme is to control inflation by
eliminating black money or underground economy.

  They said government has already closed various avenues of
whitening black money and provided opportunity through the Amnesty
Scheme to declare undisclosed income. This scheme is perhaps the
final opportunity of whitening of untaxed income in the country.-
PPI

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20000530
-------------------------------------------------------------------
SBP keeps strict watch on forex market
-------------------------------------------------------------------
Mohiuddin Aazim

KARACHI, May 29: Some local and foreign banks may face certain
action-may be a cut in their NOPs or prescribed limits for doing
foreign exchange business-from the State Bank for speculating in
foreign exchange market.

Sources close to the SBP say these banks- half a dozen in number -
are holding up stock of foreign exchange anticipating that the
rupee may soon fall against the dollar.

Currency dealers in the kerb market also say that a couple of local
and foreign banks are driving speculators towards greater buying of
greenbacks. "One of the reasons for the dollar shooting up is that
some banks are encouraging speculative buying," says the chairman
of Pakistan Forex Association Malik Muhammad Bostan.

The Association reported on Monday that the dollar closed at 54.50
and 54.60 for spot buying and selling in the kerb market up from Rs
54.30 and Rs 54.40 a week ago.

But currency dealers frankly admit that they were selling the
greenback on higher prices.

Bankers say some of them are buying the dollar 20 paisa over the
quoted rates from leading brokerage houses.

Malik Bostan does not deny it: "I can understand that. It happens
when banks start making speculative buying indirectly," he told
Dawn by telephone. "If this trend is checked effectively the dollar
may come down to Rs 54.50 within a week," he claimed.

Sources close to the SBP say the SBP officials have put on watch
some of the local and foreign banks that are holding up positions
on foreign exchange for speculations. But they say this cannot draw
a direct action from the SBP because they are not breaching their
net open positions in the process. "What the banks are doing is
wrong but so far they are within their NOPs the SBP cannot take an
action," one of the sources said. He said the SBP officials do not
rule out a revision in NOPs of the banks "if they do not start
behaving."

Sources close to the SBP say the SBP officials are currently
awaiting the outcome of the IMF-Pakistan talks in Islamabad before
making any move in the foreign exchange market.

"Let the talks be over and then you will see certain things
happening," said one of the sources. IMF and Pakistan are currently
ironing out some issues relating to foreign exchange market
including purchase of foreign exchange by the State Bank from the
kerb market and existence of what bankers call an unofficial cap on
inter-bank forex market.

Bankers say Pakistan rupee has been under pressure in the inter-
bank market also because of the continuing fall of its Indian
counterpart against the dollar. Indian rupee closed at a new record
low of 44.48 to a US dollar on Monday reflecting a 1.2 per cent
depreciation within two weeks.

Sources close to the SBP say the SBP high-ups including its
governor Ishrat Husain are keeping a watch on Indian forex market
but they do not think that the weakening of Indian rupee should be
reflecting on Pakistan inter-bank exchange rates.

Currency dealers say the ongoing tax survey and consequent tussle
between the government and traders has also triggered panic buying
of dollars in the kerb market that continues to weaken the rupee.
"This buying spree would be over soon," hopes Malik Bostan of
Pakistan Forex Association.

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20000530
-------------------------------------------------------------------
Pasha committee gives formula for cut in budget deficit
-------------------------------------------------------------------
Ihtasham ul Haque

ISLAMABAD, May 29: Former Advisor on Finance and the head of the
Macro Economic Framework Committee of the Economic Advisory Board
(EAB) Dr Hafiz A. Pasha has given report to the government to
resolve major economic issues specially by achieving 4.75% budget
deficit of the GDP in 2000-2001.

"Strategy for Budget 2000-2001, a 50:50 Formula" worked out by Dr
Pasha says the revenue deficit should also be eliminated in two
years (2000-2001 and 2001-2002) so that from next financial year
onwards all borrowings are for development purpose. Fifty per cent
reduction (equivalent to about 1.5% of the GDP) has been proposed
in 2000-2001 and the remaining 50% in 2001-2002.

He is of the view that 50% of the reduction in revenue deficit
should be managed by raising the revenues to GDP ratio by 0.75% of
the GDP and 50% by reducing the current expenditure to GDP ratio by
0.75% of the GDP. This will imply raising CBR's revenues by Rs75bn
next year. Fifty per cent will come from normal growth and 50% from
new taxation proposals and reduction in tax evasion (through
documentation and tax survey). Fifty per cent increase in revenue
from direct taxes and 50% from indirect taxes.

Major share of the fall in current expenditure to GDP ratio will be
due to containment of interest payments and defence expenditure.
Continuing with his 50:50 formula he says that 50% of the decline
should be in interest payments (of 0.37% of the GDP) and 50% in
other expenditure. The fiscal space of 1.50% of the GDP should be
used as follows: Fifty per cent to raise development expenditure
from 2.75% to 3.50% of GDP, including higher allocations for the
poverty alleviation programme. Fifty per cent to bring down the
fiscal deficit from 5.50% of the GDP to 4.75% of the GDP.

Pasha says that if fiscal deficit target of 4.75% of the GDP is
achieved, this will imply a primary budget surplus of 1.75% of the
GDP and enable the debt to GDP ratio to be reduced by almost 3%
points of the GDP in 2000-01.

The former advisor on finance believes that the CBR revenue target
of an increase by 1% of the GDP is ambitious and should be achieved
by minimum dislocation of the economy, in which the large scale
manufacturing sectors is currently in a state of recession, and
there is danger that increases in tax collection may lead to a
corresponding fall in private savings and investment.

"An increase in development expenditure of over 40% will pump the
prime economy and stimulate economic activity and generate
employment. It will also enable some poverty reduction", the former
advisor on finance claims.

The financing of the fiscal deficit, he maintains, is still
uncertain especially in terms of the likely level of external
assistance. If significant exceptional financing becomes available
as part of renegotiated IMF programme, the strategy of bringing
interest rates down on new domestic debt becomes feasible.
Otherwise, interest rates may have to be kept unchanged or even
raised. Another imponderable at this is the fiscal deficit target
negotiated by the government with the IMF.If the target is kept
low, say, 4% of the GDP, the proposed strategy is no longer viable.
"It is unlikely that revenues can be pitched even higher, given the
state of the economy. Consequently, the entire revenue deficit
reduction will have to be used for a corresponding reduction in the
fiscal deficit, thereby negating any possibility of enhancement in
development expenditure for achieving the objectives of higher
growth and poverty reduction", Pasha argues.

Fiscal deficit, he says, is still too large and needed to be
brought down to reduce rapidly the high debt to GDP ratio and to
maintain low rate of inflation and low interest rates for promoting
economic revival. Likewise revenue deficit is too large. Almost
half the incremental borrowings are for financing of public
consumption. Therefore debt servicing capacity is falling rapidly.
There is a need to cut revenue deficit sharply to ensure that
borrowings in future are devoted mostly to development.

Poor performance in resource mobilization, falling tax-to GDP ratio
which needs to be raised without adverse effects on the production
process primarily by curbing tax evasion. Simplification of tax
system, extension of tax net to undertaxed sectors and better tax
administration is required. Sharply declining level of development
expenditure is contributing to recession in the economy. "Big jump
is required in development activity for economy revival and higher
employment".

There has been a zero growth in large-scale manufacturing sector in
'99-2000 and the private investment was down and there is a need to
make tax and other policies more investor friendly. The incidence
of poverty is rising sharply and there is a need for more funds for
wider and deeper social safety nets. Many of these objectives are
potentially in conflict with each other and that lower fiscal
deficit achieved through higher tax revenues for lower development
expenditure may run counter to economic revival.

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20000530
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IMF okays reform agenda
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, May 29: The visiting five-member IMF review mission has
approved the reform agenda of the government, specially the
broadening of tax net.

Official sources said here on Monday that the first round of talks
between the review mission and the senior officials of the
government had concluded, with Sena Ekin, the leader of the
mission, approving the reform agenda that also included
stabilization programme and macro-economic framework.

The mission has appreciated the government's move to collect
additional Rs100 billion in the next fiscal year by recovering
General Sales Tax (GST) from small traders and ensuring effective
levy of tax on agriculture income.

No meeting took place on Monday due to some other engagements of
the officials of the finance ministry. The sources said the mission
would stay till June 2.

Basically, the mission was not here to discuss Pakistan's funding
requirements, both for balance of payment support and a new Poverty
Reduction and Growth Facility (PRGF). Nevertheless, the sources
said, the government gave its priority to pursue the new PRGF
programme and improve its fragile foreign exchange reserves, which
stand at $1.23 billion.

"We want our reserves improved, specially as we did not get a
single dollar from the IMF and elsewhere since May, 1999, which
forced us to buy dollars from the open market," said an official.

He said the IMF's support was necessary in not only improving the
reserves and launch the new PRGF programme but also for seeking
fresh loans from foreign commercial banks.

  Finance minister: Pakistan is hopeful it will get a three-year
2.5-billion-dollar loan package from the IMF, Finance Minister
Shaukat Aziz told AFP.

The talks with the IMF mission were "satisfactory and we hope that
we will get the first instalment in next three months," after
approval of the package by the fund's board, he added.

The IMF suspended a previous 1.56bn dollar loan programme last
year.

Pakistan badly needs the new credit before payments of $4.6 billion
on its 38-billion-dollar foreign debt becomes due next year,
financial sources said.

The Asian Development Bank (ADB) had approved 2.8 billion dollars
in assistance over three years but its disbursement had been linked
to resumption of the IMF lending, they added.-AFP

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20000601
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More time for filling tax survey forms
-------------------------------------------------------------------
Reporter

KARACHI, May 31: The Central Board of Revenue (CBR) has allowed 12
to 14 days' time for collecting the duly filled tax survey forms
being distributed these days to assess the income and assets in
industrial,
business and residential areas.

Earlier, the time limit for collecting duly filled tax survey forms
was only 4 to 6 days, but on demand from FPCCI and other trade
bodies the CBR has agreed to extend it.

Meanwhile, the local tax offices distributed on Wednesday around
2,243 tax survey forms in different areas of the city.

  Some 1,412 survey forms were distributed among business and
industrial establishments and about 831 forms in residential areas
by 16 survey teams working in the five districts of the city.

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20000601
-------------------------------------------------------------------
Presumptive tax: CBR not to reopen cases
-------------------------------------------------------------------
Parvaiz Ishfaq Rana

KARACHI, May 31: The Central Board of Revenue (CBR) on Wednesday
assured not to reopen the cases of those taxpayers who had filed
their income tax returns under presumptive tax regime.

The CBR pointed out that where correct and complete statements
under Section 143-B had been filed, full and final tax liability
discharged in respect of income chargeable under Section 80C,
assessment would not be reopened in respect of such income.

However, it has further stated that income falling out of the ambit
of presumptive tax regime is subject to assessment under other
provisions of the Income Tax Ordinance, 1979.

This issue had been hindering the survey teams from distributing
questionnaire forms to importers who mostly file their returns
under presumptive tax regime under which full and final tax
liability is discharged at the time of filing of return.

As a result of this the survey teams were unable to distribute
forms to such prime areas like Jodia Bazar where the offices of the
leading importers were located. For the last four days leaders
representing importers were holding meetings with local tax
officials and had been arguing that their members could not accept
questionnaire forms till such time proper changes were made.

They asked the high officials of local tax offices to exempt the
importers and all those who file their tax returns under
presumptive tax regime from filling those columns in which details
about expenditures, including utility bills etc of a business
concerns were sought.

The matter was taken up with the CBR by the local tax authorities
on the ground that legally the assessment framed under section 80C
on the basis of statement filed under section 143B, cannot be
reopened for seeking information about business expenses, such as
utility bills etc.

The CBR on Wednesday issued an explanation stating: "This is to
clarify that where correct and complete statement under section
143B has been filed and full and final tax liability has been
discharged in respect of income chargeable under section 80C the
assessment cannot be reopened in respect of such income. Income
falling out of the ambit of presumptive tax regime is subject to
assessment under other provisions of the Income Tax Ordinance."

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20000601
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Unofficial band revised: Dollar rises in inter-bank market
-------------------------------------------------------------------
Mohiuddin Aazim

KARACHI, May 31: Banks would buy and sell the dollar within a new
unofficial band of Rs51.95 and Rs52.10 in the inter-bank market
from Thursday.

Bankers said they were informed verbally by the State Bank on
Wednesday that the present unofficial band of Rs51.75 and Rs51.90
had been revised.

The State Bank made no statement. In fact the SBP officials always
deny the existence of what bankers call an unofficial cap imposed
on inter-bank exchange rates immediately after the rupee float in
May 1999.

Senior bankers told Dawn that they were informed of a new band of
exchange rates after inter-bank trading was over on Wednesday. That
was why the greenback did not change hands at the new rates in spot
transactions on Wednesday. Bankers said the dollar would move
within the new band from Thursday.

The rupee had been under pressure for the past two weeks on higher
corporate demand and on speculations of all sorts fuelled by the
fact that the visiting IMF mission and the government had been in
talks over issues related to exchange rates. In addition to this a
1.3 per cent depreciation in Indian rupee against the US dollar in
the past two weeks also intensified buying pressure on Pakistan
rupee.

The intensity of this pressure could be gauged from the fact that
importers had started booking dollars up to Rs53.30 for six months;
Rs52.50 for three months and Rs52.25 for one month.

The trend in the inter-bank market also reflected in the kerb
market. President of Pakistan Forex Association Malik Muhammad
Bostan said the dollar closed at Rs54.55 and Rs54.65 for spot
buying and selling in the kerb market on Wednesday.

He cited the developments in the inter-bank market as one of the
reason for increased demand for the greenback.

Some currency dealers said they sold the dollar on even higher
prices-up to Rs55. Bostan did not challenge this: "Those who buy
dollars in big quantities for speculation often pay higher rates."

Exporters welcomed the change in the exchange rates in inter- bank
market. The immediate past chairman of All Pakistan Textile Mills
Association, Humayun Elahi Sheikh said though the change in
exchange rates was small in percentage the fact that the rates had
been allowed to move upwards is welcome.

Senior bankers said the upward revision in the unofficial band of
inter-bank exchange rates was the first step towards full
liberalization. "This is just the beginning. I hope there would be
no unofficial band or cap in place in near future," said head of
treasury of a leading European bank.

Foreign banks were hit hard by the presence of an unofficial cap on
exchange rates as they used to earn huge profits in the past in
foreign exchange transactions.

But the State Bank officials always insisted that it was not any
cap or sort of thing which had kept the rupee stable in inter- bank
market. Instead the rupee drew its strength from economic
fundamentals.

The SBP officials had also turned down demands of the exporters to
remove the cap by saying that a low inflation of 4 per cent that
nearly matched with many of Pakistan business partners had resulted
into a real effective exchange rate that did not demand any
immediate correction.

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20000602
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5% growth rate projected for next year
-------------------------------------------------------------------
M. Ziauddin

ISLAMABAD, June 1: The finance ministry has proposed a 05 per cent
growth rate for the next year against a projected achievement of
about 4.5 per cent in the GDP growth rate for the current fiscal
year.

The proposed growth rate for the next year has been fixed on the
hope that the rate of inflation during the year would be kept
pegged to 4.5 per cent and monetary expansion to 09 per cent.

Next year the exports are projected to grow by a hefty 11 per cent
and imports by a lowly 3.6 per cent as the government expects a
sustained growth in agricultural production, a significant revival
of the manufacturing sector, lower prices of oil and its products
and a marked increase in competitiveness in the external sector.

The trade account for the next year is projected to be in deficit
by $1.30 billion against a projected deficit of $1.86 billion for
the current year by end June 30.

All these estimates are expected to be finalized by the National
Economic Council meeting scheduled on June 3. The meeting is
expected to be presided over by the chief executive, Gen Pervez
Musharraf.

The prospects for the invisible account have been projected by
these estimates to continue to be governed next year by the
behaviour of workers' remittances, and the inflow of remittances
for 2000-2001 are projected at $1.1 billion against $950 million
this year. Allowing for other invisible receipts and payments, the
surplus on invisible account is anticipated to decline to $44
million from a surplus of $167 million in 1999-2000.

With a deficit of $1.30 billion on the trade account and a surplus
of $44 million on the invisible account, the current account
deficit is estimated to decline to $1.26 billion (2 per cent of
GDP) in 2000-2001 from $1.70 billion (2.8 per cent of GDP).

The capital account is projected to improve next year because of
the expected increase in the flows of both official and private
long-term capital, with gross disbursement of official development
assistance going up to $2.0 billion, largely on account of
disbursement of programme loans and commodity aid.

Private long-term capital is expected to increase significantly and
after allowing for other capital movements (outflow), a surplus of
$896 million is projected to occur in the overall balance next year
as compared to a deficit of $1.60 billion during 1999-2000.

However, taking into consideration transactions of the banking
system and a build-up of $1.12 billion in foreign exchange
reserves, the financing gap is projected to decline from $4.08
billion in 1999-2000 to $1.82 billion next year.

The focus of the fiscal policy during 2000-20001 is proposed to be
kept on reducing the fiscal deficit and on enhance the development
expenditure. The reduction in fiscal deficit is expected to help
reduce the debt burden, which has over the years reached an
alarming level.

By increasing the development expenditure, the government hopes to
give a boost to the economy for sustained recovery and poverty
alleviation. These objectives are proposed to be achieved by
keeping a check on current expenditure and stepping up resource
mobilization. Resource mobilization is expected to come through
expansion of the tax base, shifting of taxes from investment to
consumption and reduction of tax rates and their number. It is also
envisaged to improve the administrative machinery and to reform
rules and regulations etc to plug tax evasion.

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20000602
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$ trades in new band
-------------------------------------------------------------------
Reporter

KARACHI, June 1: The US dollar traded within a new unofficial band
of Rs 51.95 and Rs 52.10 in spot transactions in the inter-bank
market on Thursday - 20 paisa over previous rates of Rs 51.75 and
Rs 51.90.

In the kerb market the dollar closed at Rs 54.60 and Rs 54.70 for
spot buying and selling showing a five paisa gain overnight. Senior
bankers said there was a great demand for the greenback in the
inter-bank market with forward premiums ranging between Rs 1.15-
1.30 for six months; 55-65 paisa for three months and 20-25 paisa
for one month. They said importers were anxious to make forward
booking of foreign exchange fearing that the rupee would fall
further.

On Wednesday SBP had verbally allowed the banks to quote the US
dollar within a new unofficial band of Rs 51.95 and Rs 52.10 on
higher corporate and trade demand.

Taking it as clue for a further fall of rupee speculators made huge
buying in the kerb market where the dollar shot up to Rs 54.55 and
Rs 54.65 the same day. Currency dealers said as the buying spree
continued the dollar moved up to Rs 54.60 and Rs 54.70 for spot
buying and selling on Thursday. They said the buying spree may fade
way within days.

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20000602
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Karachi Stocks plunge
-------------------------------------------------------------------
Reporter

KARACHI, June 1: Karachi stocks on Thursday again took a big plunge
on nervous selling amid reports that the trading on Lahore Stock
Exchange has been suspended as some of its members failed to settle
their over-exposure limit accounts, agreed on Tuesday.

The rumours of a possible default of half a dozen of its LSE
members sent shock waves in KSE trading hall", said a leading stock
broker. The KSE index fall over the day was 89.08 points or 6 per
cent at 1,447.57, as compared to 1,536.65 a day earlier, eroding
Rs20 billion from the market capitalization.

"The KSE board decision to declare Mohammad Hanif Moosa as
defaulter and to auction his assets including membership card,
office premises telephone booths and shares as already under-
written to clear his outstanding dues had also a negative impact",
he added.

Back to the top
=================================================================== 
 EDITORIALS & FEATURES
20000528
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The educated of Sindh
-------------------------------------------------------------------
Ardeshir Cowasjee

MINE was the pleasure and the honour to be the first man upon whom
Governor of Sindh, Air Marshal Azim Daudpota, called after he had
been appointed; mine was also the pleasure and the honour to be the
last man to call upon him on the evening of the day he relinquished
his governorship.

My first thought on hearing of his appointment was, 'How will this
man, officer and gentleman, survive the politicians, the boors, the
wrigglers and wanglers; how long can he last?' I rang to
congratulate him and asked if I may call at his house to meet him.
He thanked me, said no, I may not. He drove over to my home to meet
me.

Soon after General Pervez Musharraf took over the country, he
invited the air marshal to Islamabad and told him that it was the
unanimous decision of the corps commanders, and also his choice,
that he be appointed governor of Sindh. The air marshal agreed and
was duly sworn in on October 25.

  Seven months later, on May 24, he received a telephone call from
the Chief of Staff at GHQ, Lt-General Ghulam Ahmed, telling him
that 'they' wished to remove him and he had the choice between
resigning and being sacked. He chose to relinquish his post, which
he immediately did. The strange inexplicable fact was that it had
only been a matter of hours since he had been with the Chief
Executive, who had made no mention of his removal or resignation.

On September 14, 1933 in Bombay, a son, Azim, was born to Umar
Mohammad and Karima Daudpota, their fourth child, three daughters
having preceded him. He was schooled at St Patrick's in Karachi,
went on to the Dayaram Jethmal Sindh College, and then joined the
Pakistan Air Force. He was sent in 1952 to be trained at the Royal
Australian Air Force Academy at Point Cook from where he graduated
in 1955. In 1962 he was given command of two Fighter/Bomber
Squadrons at Sargodha and Masroor. He graduated from the PAF Staff
College at Drigh Road, was sent to our high commission in Delhi as
air adviser, then to the Royal College of Defence Studies in
London, and returned to Sargodha as base commander. In 1983
Zimbabwe asked for a Pakistani officer to organize and command its
air rorce and Daudpota was sent off, taking with him the present
air chief, Pervez Mehdi Qureshi, to assist him. In 1986 he returned
to Pakistan to be appointed as managing director of PIA, and in
1989 in addition became its chairman.

As chairman, one fine day when seeing off Prime Minister Benazir
Bhutto at the airport, she casually introduced him to Arif Abbasi
and told him that with immediate effect Abbasi was to take over as
MD. Taken aback, the air marshal quietly enquired from one of
Benazir's hangers-on if he knew how long he was to remain chairman
as he needed to know whether to rent out his own house or not.
Don't, he was told. Sure enough, he was soon moved out and sent to
head PIDC, normally a three-year tenure.

Come Nawaz Sharif in 1990, and the all-powerful, wily, corrupt and
now absconding bureaucrat, Salman Faruqui, persuaded his equally
corrupt master to get rid of the air marshal and appoint cousin
Bilal Faruqui in his place. Daudpota found a job in the private
sector, where he remained until uprooted to become governor of
Sindh. Today, he is jobless, and not having been corrupt faces
financial restraints. He now has all the time in the world to play
bridge.

On the night of May 24 I drove over to the desolate governor's
mansion to commiserate and ask if he needed any help in moving out.
He told me that he would have already moved had there been any
water in the tank at his Defence house and had his telephones been
working. He intended to settle matters in the morning and move out.

The first time I had heard the not so common name Daudpota was when
I was a student at the BVS. We were told that the new Director of
Public Instruction (DPI - the head of education, schools and
scholastic institutions of the province) Dr Umar Daudpota, who had
just suceeded that other fine scholar, Nabi Bakhsh Kazi (A G N
Kazi's father), was to inspect the school.

Umar Daudpota, a true son of Sindh, was born in 1896 in the village
of Talti, where he also went to school. He later joined the Sind
Madressah and then the D J Sindh College from which he graduated
with a first class first BA and MA. A scholar, a linguist, fluent
in Arabic, Persian and German, he then gained admittance to
Emmanuel College, Cambridge to do his Ph.D. Returning to Karachi,
he was appointed principal of the Sindh Madressah. In 1930, he went
to Bombay as professor of Arabic at Ismail College, and returned to
Karachi in 1939 as DPI in which post he remained until 1948. Umar
Daudpota was honoured by the British with the prestigious title of
'Shams-ul-Ulema'.

Nabi Bakhsh Kazi, a tall handsome man, was always immaculately
dressed in a three-piece suit and a Fez. He spoke little and was
held in great awe by the other scholar, the principal of our
school, the BVS , Dr. Maneck Bejonji Pithawalla, a doctor of
science, a geologist and a geographer.

The Kazi family has produced some notable men - all straightforward
honest and talented individuals, amongst them Allama Kazi, Justice
Mamoon Kazi, formerly of the Supreme Court (who managed not to sit
on the Bench when I was hauled up last year for contempt and the
then Chief Justice of Pakistan Saiduzzaman Siddiqui convened a
full-court bench), Akhtar Ali Kazi, another former judge who,
incapable of rigging, has the honour of being the only sitting
chief minister of Sindh to lose an election, the late Judge Imam
Ali Kazi, and the extremely proper and well-mannered anaesthetist,
Haleem Kazi, who has the added distinction of being the husband of
the very substantial Professor Doctor Hamida Khuhro whose sense of
humour matches her bearing.

Before the quick-firing generals take aim at other good people
within their range, let us remind them that they chose well when
they inducted into the Sindh cabinet the talented educationist,
Professor Anita Ghulam Ali. She well knows the value of education
and is of the firm conviction that education and education alone
can thwart and repulse the present invasive, insidious, and rife
bigotry with which this country is stricken. She is the daughter of
that enlightened and charming couple, now sadly both departed from
this world, Feroze Ghulamally and Shireen Nana. Feroze was a
distinguished judge of the Sindh High Court. Anita is the
granddaughter of another educationist, Nuruddin Ahmad Ghulamally
Nana, a fine moustachioed figure of a man, also a former DPI of
Sindh; and she is the great-granddaughter of another Shams-ul-
Ulema, Mirza Qaleech Beg, author of 392 books. More needs to be
written about the Nanas.

General Pervez Musharraf is a forward-thinking man of liberal
thought. If well advised, he has the capacity to lead us out of the
mess we are in. He was taught, as was Azim Daudpota, at one of
Karachi's finest schools, St Patrick's High School, where boys in
those days learnt all about gentlemanly behaviour, manners, and
what is and what is not done.

Musharraf was actually in Karachi the day his chief of staff called
Daudpota to give him his marching orders and had been with Daudpota
a few hours earlier, when no mention of any change was mooted. The
right and proper thing would have been for Musharraf to drive to
the Governor's House, meet the air marshal, who is ten years his
senior, and say to him, "Air Marshal, Sir, we wish to make a
change, and appoint a less bothersome junior man to sit in the
governor's chair. May I have the privilege of dining you out and
driving you home?"

He chose the craven, rather than the correct, way of ridding
himself and his corps commanders of a man who was capable of saying
what he felt had to be said.

The general can still make amends. He can dine out the Air Marshal
and ensure that he receives the perks and privileges to which a
former governor is entitled.

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20000602
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The more things change
-------------------------------------------------------------------
Ayaz Amir

AN army can pursue the path of self-destruction by fighting wars it
cannot win but it cannot successfully be confronted at home as long
as its internal unity remains intact. The PPP failed to understand
this elementary lesson in statecraft in its time just as Begum
Kalsoom Nawaz is finding it difficult to understand it now.

The Papadopoulos junta in Greece fell when it tried to annex
Cyprus. The Argentinian generals had to go home when they provoked
the Falklands war and could not win it. Nearer home, the Yahya
junta collapsed because of the debacle it faced in East Pakistan.
Otherwise, there was no way it would have been cowed by any
politician.

The Musharraf regime for all its tough-talking vis-a-vis India will
not be trapped in any adventure along the Line of Control,
certainly not after Kargil whose ghosts, because of what this
adventure cost Pakistan, still haunt the minds of the high command.
With or without public support, the army's domestic position is
therefore secure. If it abides by the three-year timeframe set down
by the Supreme Court, the people of Pakistan, unused to such
exercises in self-denial, will treat this event as the minor
miracle that it will undoubtedly be. But if there are twists on the
road to Damascus, if the army feels that the task of 'national
reconstruction' (a dread phrase) remains unfulfilled, the nation
will take that too in its stride and resign itself to events not in
its power to alter. As for the Supreme Court, whenever the national
interest has so demanded, it has risen to the occasion. There is no
reason to think it will not do so again.

The only danger lies in the last temptation: the beckoning example
of Indonesia before Suharto's fall when the military had permeated
every facet of national life. Already a disturbing trend is visible
with serving and retired officers making smart career moves and
getting cushy appointments. Once entrenched such attitudes are
difficult to eradicate.

General Musharraf may well be free of guile or vaulting ambition.
But what about others under him? Where there is power there are
also perks and privileges. And there is patronage. All politics is
about jobs, said the American politico, Tip O'Neil. Which is as
true of civilian governments as anything dressed in martial
regalia. Forms change, the runners are different but the substance
of patronage remains the same.

Anyhow, three years may not be a long time for a nation used to
measuring its misfortunes in decades, but it is a long time for
people of my generation who have crossed the psychological
watershed of fifty. I have a few black hair still left. After three
years how many will remain? If great things are happening the
excitement thereby generated carries one along. But what if, like
so often in the past, instead of progress there is only paralysis?
How then to fight the onset of ennui, the worst of human
afflictions? What did Nawaz Sharif say about his nights in jail?
That they never seemed to come to an end. I would have put such
poetry past him but then jail is a harsh teacher.

All the same, military rule in countries such as ours always comes
with the promise of movement and ends up delivering stagnation. Not
because intentions are insincere, very often the opposite being
true. But because an army such as ours is a force for social
stability, not a force for social reform. It is not a people's
liberation army shaped by the etching experience of something like
the Long March but an institution which, despite a thin veneer of
Islamic rhetoric, remains very much true to its British moorings.
Where in the world has a British-trained army led a social
revolution? Why should it be any different in Pakistan? Yet,
cutting through the opaque verbiage of the seven-point agenda, what
General Musharraf and his team avowedly want to deliver is a
radical transformation. They may lack the means or indeed an
understanding of cause-and-effect but they continue to aspire for
the moon.

What is actually happening is a bit different. The nation and the
junta are set on two different tracks, parallel if you will, with
no meeting point between them. The government is in a self-created
bubble convinced both of the correctness of its chosen path and of
the support of public opinion. In contrast to this, anyone not
totally blind or prejudiced can have little difficulty in sensing
the extent of public frustration that has built up over the
government's lack-lustre performance or in seeing how completely
the euphoria that had set in after the military takeover has
evaporated.

True, traders are fighting a losing battle, their defiance more
irrational than principled. How long can they withstand the might
of the state? But even if the hoped-for revenues start coming in
(although dissident voices can be heard saying these are being
over-projected) what happens to the task of reforming the state
which is the key to national renewal or redemption, the second word
being more in accord with the messianic psychology of the Pakistani
masses?

The Chief Executive wants the press to be his eyes and ears. A
laudable aim but one not founded on reality. Who reads newspapers
in Pakistan? Certainly not anyone in authority. Benazir had no time
for them nor did Nawaz Sharif. From what I have been able to
gather, things are no different nowadays. Freedom of the press is
being tolerated not because of any eyes-or-ears reason but because
of external considerations. A crackdown on the press would invite
international censure and further spoil the image of a regime being
asked to restore democracy.

Who are the leading figures in this dispensation? The Chief
Executive of course, followed, at a short distance, by his two
principal field marshals heading respectively the General Staff and
the ISI. Behind them a couple of other staff officers at GHQ. The
corps commanders are supreme in their own areas of jurisdiction but
the aforementioned nucleus at GHQ constitutes the nerve-center of
the junta, the source from where the key decisions flow.

The governors are figureheads in their sprawling provincial
mansions much in the way President Rafiq Tarar is a figurehead (and
a living nightmare) in the presidential mansion. The provincial
ministers, as is only to be expected, are nobodies. In the federal
cabinet the majority of ministers are nonentities while a few, such
as Moinuddin Haider and the inevitable Javed Jabbar, enjoy a
derivative importance because of their putative closeness to the
source of all light, the Chief Executive. Munshi remains useful, as
any law minister in a military government would, for his legal
skills. But, if appearances are not deceptive, the person truly
spreading his wings is Citibank's gift to Pakistan, the finance
minister. When he first arrived on these shores after October 12
last year he had to appear before a selection committee at GHQ. It
is a measure of how far he has come that his position now needs no
buttress from any quarter.

How did the Soomro, who was a banker, get appointed as Sindh
governor? Who's brought in the new PIA chief? While feverish
guesswork in this connection could be right or wrong, what seems
fairly certain is that the new PIA chief has no airline experience.
What's more, an uncertain reputation follows him from the time he
worked for the Saigols in Saudi Arabia. After listening to such
tales I am inclined more than ever to respect the transparency and
the ascendancy of merit which are as much features of the New
Republic as they have been of all governments past. The more things
change...


===================================================================
SPORTS
20000603
-------------------------------------------------------------------
Pakistan crush Bangladesh by 233 runs
-------------------------------------------------------------------

DHAKA, June 2: Abdur Razzaq took three for five as Pakistan
thrashed Bangladesh by 233 runs in the four-nation Asia Cup on
Friday. The Bangladeshi batsmen capitulated without a fight,
scoring only 87 in reply to 320 for three against the firepower of
the Pakistan seam attack.

Razzaq wrecked the home innings in four overs - one a maiden.
Bangladesh were in trouble even before their innings began because
opener Shahriar Hossain was unable to bat after he was injured
while fielding.

Facing a top Pakistani bowling attack, Bangladesh lost four quick
wickets in the first 16 overs for only 50 runs. They lost another
four wickets in following 10 overs with the scoreboard at only 74.

Bangladesh skipper Aminul Islam was run out for a duck. Only two of
home players were able to reach double figures - Habibul Bashar
(23) and Mushfiqur Rahman (12).

Azhar Mahmood plucked two for 22 while Wasim Akram, Mohammad Akram
and Arshad Khan took one wicket each to humble Bangladesh out
before a packed but dissolutioned home crowd of over 35,000 at the
Bangabandhu National Stadium.

Earlier, the visitors ploughed through the relatively weak bowling
and fielding of Bangladesh to pile up a massive 320-3 in their 50
overs.

Opener Imran Nazir led the Pakistani batting assault by hitting 80
off 76 runs followed by Yousuf Youhana, who plundered 80 runs off
104 balls in a spirited partnership.

Pakistan, who had never won this tournament, crossed the 100 mark
in just 15 overs. The run spree continued with Inzamam-ul-Haq and
Shahid Afridi, hitting 75 off 61 and 45 off 32 balls respectively,
to take the total to a record Pakistani score of 320 in Dhaka.

Opener Saeed Anwar, who was playing his first match for over two
months, was first to go after making 31 off 32 balls, bowled by
off-spinner Naimur Rahman.-Reuters/AFP

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20000529
-------------------------------------------------------------------
Qayyum says Pakistan team now free of match-fixing
-------------------------------------------------------------------

  LONDON, May 28: Judge Malik Mohammad Qayyum, who investigated
allegations of corruption in Pakistan cricket, said on Sunday he
thought his country was now free of match-fixing.

"So far as Pakistan is concerned I don't think there is any match-
fixing now," Qayyum said when interviewed by BBC Radio Five Live.

The recommendations of the judge's report led to Pakistan's former
captain Salim Malik and discarded Test pace bowler Ata-ur-Rehman
being banned for life by the Pakistan Cricket Board (PCB) last
Wednesday.

Six other Pakistan cricketers, including ex-skipper Wasim Akram,
were fined either for bringing the game into disrepute or failing
to co-operate with the inquiry.

Qayyum was asked during the interview if he thought matches
involving England players had escaped bribery attempts.

The judge said: "The evidence which was presented to me didn't
speak of any Pakistan-England match being fixed, except for one
match which was a one-dayer in England. But that was just heresay,
there was nothing concrete."

Qayyum said he thought it was in 1994 "when Pakistan had won the
Test series and it was followed by the one-dayers".

Pakistan, in fact, did not tour England in 1994. They did so in
1992 and 1996. Pakistan played Australia at home in the three-Test
series. It was that series after which three Australian players
accused Salim Malik was offering them bribe.

The judge said: "There was no suspicion of any English players. The
only thing which was said was that Wasim (Akram) and Waqar (Younis)
bowled badly in that match. Nobody accused any English players.
They only said the Pakistan team bowled badly."-Reuters

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20000530
-------------------------------------------------------------------
Adams leads West Indies to a dramatic series triumph
-------------------------------------------------------------------

  ST JOHN'S (Antigua), May 29: West Indies survived a Pakistan
bowling onslaught to win the final Test, and with it the series, by
one wicket on an enthralling, tension packed fifth day on Monday.

West Indies still needed 19 runs when they lost their ninth wicket
but last man Courtney Walsh, who has one of the worst batting
records in Test cricket, and captain Jimmy Adams hung on grimly to
reach their target of 216.

Pakistan, inspired by paceman Wasim Akram who took six wickets in
first innings and five in the second, twice thought they had won
the match and their first series in the Caribbean.

They claimed Adams had edged a Wasim Akram delivery to Moin Khan
with the score on 200 and missed a glorious runout chance, when
both batsman were caught at the same end, with the score on 203.

Captain Jimmy Adams, unbeaten on 48 off 212 balls, was the West
Indies hero, batting through the day as wickets fell at the other
end and doing everything possible to shield the tailenders from the
strike.

West Indies seemed to have a straightforward task as they resumed
on 144 for four but superb Pakistani bowling, led by the
irrepressible Akram, put them under pressure.

Akram, who bowled Wavell Hinds for 63 with the last ball on Sunday,
made a crucial breakthrough for Pakistan when he trapped Ramnaresh
Sarwan lbw for six to leave West Indies on 161 for five.

They made another breakthrough when Ridley Jacobs, who survived
several loud appeals, was run out for nought by a throw from Yousuf
Youhana at short fine leg with 169 on the board.

Franklyn Rose followed for four when he smashed a delivery from
Mushtaq Ahmed into the hands of Akram at long on, leaving West
Indies 177 for seven and still needing 39 for victory.

Curtly Ambrose, batting in what could be his last Test match on his
own ground, was lbw to Saqlain Mushtaq for eight off the last ball
before lunch.

Walsh, unbeaten on four, and Adams survived 73 minutes at the
crease as they steered West Indies to victory.

A fascinating finish to an evenly balanced series, which saw the
first two tests drawn, was set up on Sunday when Pakistan were
bowled out for 219 just after lunch on Sunday to set the West
Indies 216 for victory.

Wasim Akram, who demolished the West Indies first innings with six
for 61, quickly dismissed West Indies openers Adrian Griffith and
Sherwin Campbell with the score on 31, then made it 144 for four
when he bowled Wavell Hinds for 63 with Sunday's final ball.

HINDS LOSES COOL: A reckless stroke by Wavell Hinds conceded a
pivotal West Indies wicket to Wasim Akram and Pakistan just prior
to a rain-induced end to the penultimate day of the match on
Sunday.

In a volley of strokes, Hinds was leading West Indies to the verge
of a memorable and significant win in a knock of 63 when he gave
his wicket away playing the hook shot that had cost opening batsmen
Sherwin Campbell and Adrian Griffith their hands.

His dismissal in the growing gloom and imminent showers that
enveloped the ground on his retreat to the Sir Vivian Richards
Pavilion left West Indies 144 for four.

Hinds has been the most prolific batsman in the series on either
side with 340 runs at an average of 68.00 including his maiden Test
hundred in the previous Test in Bridgetown. In only his fifth Test,
his dismissal showed he still has much to learn about the
psychology of the game.

Except for Wasim, none of the other Pakistani bowlers seemed to
trouble him in an innings that lasted 3 1/2 hours, 128 balls and
contained seven fours and two sixes, both of leg-spin bowler
Mushtaq Ahmed, who has been his nemesis in the earlier part of the
series.

Hinds however, got into a wrangle with Saqlain Mushtaq and on one
occasion barged into the off-spin bowler for no apparent reason.
This confrontation seem to knock him off the tracks, since his
timing and his concentration was askew after it.

When Moin Khan played his "ace" late in the day with the end
beckoning, Hinds clearly had lost sight of his purpose.

On 60, he was dropped by second slip Mohammed Wasim, flying to his
left to get a hand to the ball, off Wasim Akram and eventually
dragged a short-ball from the champion left-arm fast bowler into
his stumps to be bowled in his following over. It was a sorry way
to end such a promising innings.-Reuters/AFP

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20000601
-------------------------------------------------------------------
Asian teams threaten to boycott ICC trophy
-------------------------------------------------------------------
Reporter

KARACHI, May 31: The Asian cricket playing nations have threatened
to withdraw from October's International Cricket Council (ICC)
knock out tournament in Nairobi, Kenya.

According to sources, the Asian Cricket Foundation (ACF) has warned
the ICC that if the development funds for Asia were not increased,
the teams wouldn't participate. Of the four, Bangladesh are on the
threshold of Test status.

The ACF has urged the ICC to decide about the increase in their
development funds in next month's meeting. The officials said the
present funds for Asia were smaller than the North Americans were
getting for development of the game from the ICC.

Sources said the move has been generated by Jaghmohan Dalmiya who
takes over as ACF president next month after completing his term as
ICC chief.

The PCB has also supported the proposal.

Officials claimed that the ICC was earning more from Asia than from
any other continent because of sponsors and television rights.
"Therefore, our share from the profits and funds should be more
than other continent."

A percentage from the profits of the ICC tournaments are equally
divided amongst Test playing countries while a certain percentage
is allocated for development.

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