------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 2 September 2000 Issue : 06/33 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + FIR in plane case full of flaws: defence + Counsel told not to politicize plane case + Nawaz illegally stopped landing of plane, observes CJ + Plane case: approver's version contested + Plane case hearing: Vital evidence erased, says defence counsel + AG explains why Nawaz was hand-cuffed + Mly takeover: SC to hear pleas soon + Devolution plan, poll reforms discussed: McKinnon, Musharraf meet + McKinnon calls for democracy in 2 years: CE gave no timeframe + Commonwealth help to be welcomed + Court summons Benazir + Case against Nusrat Bhutto: hearing on 11th + FIA not being disbanded, says minister + No Israeli technology transfer to Pakistan + Probe demanded into MQM charges against ISI + JCSC meeting + Formal talks to resolve PIA, Sabre tiff begin + NRB, interior ministry told to mend fences + GDA chief opposes change in constitution + Officials asked to get data from WAPDA: Understatement of income + EC reviews voters lists verification plan + Kalabagh dam plan shelved: Cabinet decides to tap other sources + Changes in top army brass + Pakistan expels Indian HC official + India rejects reports on peak issue + Balochistan, NWFP propose names on NFC + Draft law on freedom of information circulated + Over 2,600 cases referred to CE secretariat: Corrupt officials + RBOD water to be drained into sea: Sindh stand upheld --------------------------------- BUSINESS & ECONOMY + Micro-Finance Ordinance to be amended + CBR amends ST refund rules: Exporters get 60-day facility + SBP cuts yield on fresh FCY deposits + Large-scale deficit is unsustainable: report + IMF short package by year end likely + Kuwait reschedules Pakistan's loans + Weekend stock session finishes on weak note --------------------------------------- EDITORIALS & FEATURES + General Agha Mohammad Yahya Khan By Ardeshir Cowasjee + The quality of Pakistani dictatorship By Ayaz Amir + The silly season By Irfan Hussain ----------- SPORTS + South Africa clinch Singapore trophy: Pakistan go down by 93 runs + Waqar blames poor fielding for defeat + 3 cricketers to face one-man inquiry body + Players deny incident ever happened + Pakistan beat New Zealand by solitary goal

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NATIONAL NEWS
20000829
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FIR in plane case full of flaws: defence
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By Shamim-ur-Rahman

KARACHI, Aug 28: Arguing the case for setting aside the conviction 
of the deposed prime minister, Nawaz Sharif, in the Oct 12 plane 
hijacking case, Barrister Azizullah Shaikh made submissions before 
the full bench of the Sindh High Court on the premise of power 
struggle.

The full bench, comprising Chief Justice Saiyed Saeed Ashhad, 
Justice Sarmad Jalal Osmany and Justice Wahid Bux Brohi, resumed 
hearing of appeals against the judgment in the case after a weeklong 
adjournment.

The defence counsel referring to the facts mentioned in Syed Zafar 
Ali Shah case and Nawaz Sharif's statement before the trial court 
claimed that the FIR was flawed and a "bundle of lies." He also 
submitted that Mr Sharif's government was overthrown as a 
consequence of a power struggle, which stemmed from the Kargil 
episode.

He submitted that the case against Mr Sharif was registered "after 
deliberations, consultations and planning with unexplained delay of 
28 days to create justification for the unconstitutional and illegal 
takeover of the country by the army and to divert the attention of 
the people from the act of high treason, subversion of Constitution 
and even kidnapping." Justifying his changed stance he cited various 
cases and claimed that an accused person was free to take whatever 
plea he liked, whether true or false.

One of the three cases was from undivided India known as Moti Ram's 
case (AIR 1941, Sindh). The two judgments delivered by the Supreme 
Court of Pakistan in 1992 were relied upon for invoking 
"exceptions."

Citing Moti Ram's case he submitted that it was the duty of the 
court to see that whether the accused was entitled to benefit of 
doubt or not. The focus of Mr Shaikh's argument was on creating a 
reasonable doubt about the facts of the case. He claimed that by 
removing Gen Musharraf as the COAS and chairman joint chiefs of 
staff committee, Mr Sharif had exercised his authority, which was 
being eroded because three generals had become disobedient.

He submitted that Mr Sharif had ordered the plane to be sent out 
after refueling because he wanted to consolidate his position as the 
presence of Gen Musharraf would have encouraged those who had 
rebelled. He maintained that the order given by his client at 6.15pm 
was very significant to prove that he did not hijack the plane but 
the one who was on board the plane.

Mr Shaikh submitted that his client had the constitutional authority 
as prime minister and the defence minister to remove Gen Musharraf 
at 4.30pm. The order was seen by the president, he submitted 
claiming, "whatever has been done after this was illegal."

The removal was not a new thing, he said, arguing that Mr Sharif had 
earlier removed chiefs of the army, air force and navy. "All of them 
obeyed the orders but this time an individual rebelled", argued 
Barrister Shaikh. If the plane had not landed the entire story could 
have been different, he claimed.

Barrister Shaikh also submitted a xerox copy of the order of Mr 
Sharif which said: "It has been decided to retire Gen Pervez 
Musharraf, acting chairman, joint chiefs of staff committee with 
immediate effect. Lt-Gen Ziauddin has been appointed as the chief of 
the army staff with immediate effect and promoted to the rank of 
general. Before orders to this effect are issued, President may 
kindly see."

He submitted that the prosecution had not challenged Gen Ziauddin's 
appointment and as it remained unchallenged, the removal of Gen 
Musharraf was legal.

Claiming that the FIR was flawed and intended to victimize his 
client, the defence counsel refuted allegation of a conspiracy to 
kill the COAS. "Where was that conspiracy when the plane was ordered 
to land for refueling," he emphasized. Referring to trial court's 
judgment in the case, he submitted that it had acquitted his client 
on charges of attempted abduction, attempt to murder and high 
treason and thus half of the case of prosecution had gone. He said 
the prosecution had not challenged Mr Sharif's acquittal on these 
counts.

He submitted that in the FIR Mr Sharif had been accused of high 
treason but the trial court judge had observed that he had gone 
through the facts and had found no evidence to that effect. "Is it 
the duty of the court to investigate?", he asked and added "can 
reliance be put in such witnesses?"

He also pointed out that in the FIR there was no mention of Shahbaz 
Sharif, Saifur Rahman and Saeed Mehdi but in the challan their names 
were inserted.

Citing various portions of the FIR he submitted that it was "not a 
prompt but a product of the sum total of the best brains ... This 
was not a genuine FIR; it was lodged after due deliberations and 
consultations." In this context he recalled Col Atiqur Rehman 
Kiyani's statement that approximately 150 people had been consulted.

In the FIR only five accused were mentioned but in challan three 
more names were added which he claimed was proof of the case being 
false and vindictive.

He submitted that his client was charged under sections 324 and 365 
but the trial court had not found him guilty. This means that 
partially the prosecution's case was false. He noted that the 
prosecution had not filed an appeal against this.

Barrister Shaikh emphasized the time of 6.15pm when his client had 
given clearance to the plane to land for refueling, charges of 
hijacking against Mr Sharif were cooked up as no explanation was 
given for 1.40 minutes flight after that clearance.

In support of his contention of power struggle he also referred to 
part of Gen. Musharraf's speech after military take over in which he 
had stated that the "armed forces had been facing incessant public 
clamor to remedy the fast declining situation from all sides of the 
political divide". This was interpreted by the defence counsel as 
politicking and struggle for power by the armed forces, in violation 
of the constitution.

In support of his contention he said that differences of opinion 
were also hinted when Gen Musharraf had claimed that his counseling 
was not taken into consideration.

Hitting hard at frequent military takeovers and interventions 
Barrister Shaikh submitted: "Pakistan came into being not on the 
basis of bullet but on the basis of ballot. They had not played any 
role in the creation of the country, what right they have to 
interfere with the constitutional authority."

He also referred to Kargil episode and read out from the statement 
given by Mr Sharif before the trial court where he had alleged that 
Gen Musharraf had a grudge against him and had already prepared a 
blueprint for the overthrow of his "legally established government 
by unconstitutional means."

He referred to Mr Sharif's statement in which he had stated that the 
circumstances giving rise to "these unfortunate developments" dated 
back to the Kargil issue which was one of the most serious crises in 
Pakistan's history, and had posed a grave danger to the integrity of 
the country.

Shahbaz Sharif was also produced before the bench along with Shahid 
Khaqan Abbasi and Syed Ghous Ali Shah.  

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20000830
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Counsel told not to politicize plane case
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By Shamim-ur-Rahman

KARACHI, Aug 29: A full Bench of the Sindh High Court, hearing 
appeals against the ATC judgment in the PIA plane hijacking case, 
directed Nawaz Sharif's counsel not to politicize the case as he 
dwelt on the facts of the case and referred to mutiny and revolt, in 
support of his contention of the power struggle between his client 
and Gen Pervez Musharraf.

As the defence counsel referred to the army takeover as "mutiny and 
revolt" the chief justice observed: "We are not here to decide 
whether it was mutiny or revolt or something else, the case before 
us is a criminal case and you should confine your arguments to facts 
and merits of the case. "You should not politicize the case because 
if you continue on these lines, you will be encountered with other 
case material also", observed the chief Justice.

He remarked that the defence had not been able to produce any 
material whether the three mobile telephones stated to be carried by 
Gen Pervez Musharraf were operational while he was in Sri Lanka, and 
whether he was in contact with his aides in Pakistan. "The decision 
(of takeover) was taken after consultation with about 18 generals," 
the chief justice remarked, adding that "he was not even here how 
can he order... and you are saying that whatever happened was at his 
behest, how?"

Barrister Shaikh submitted that before going to Sri Lanka Gen 
Musharraf had planned the coup. "Whether he went or was sent there 
is also a controversial matter and the Supreme Court will have to 
hear me."

Mr Shaikh contended that he was dealing with facts and not 
politicizing the case. He contended that when the army chief had 
confirmed that all his generals had been in contact he landed at 
Karachi and ordered not to let anyone leave the country.

Referring to the struggle for power he mentioned the Kargil episode 
which he claimed had sowed the seeds of bitterness and hostility.

On defence counsel's submissions justifying "removal" of Gen 
Musharraf the chief justice asked how Gen Musharraf lost confidence 
of the then prime minister only a week after his appointment as 
chairman, joint chiefs of staff committee. "You appoint a person one 
week because you were aware of his qualities but the next week he 
suddenly looses your confidence?", observed the chief justice.

The defence counsel submitted that if he dwelt into that it would be 
out of this court's jurisdiction and it was for the Supreme Court to 
call all parties on this point. "I am trying to bring out the motive 
for removing Gen Musharraf, I am not politicizing, I am reading from 
the record," submitted by the defence counsel.

The court remarked that the defence counsel could argue about the 
alleged power struggle but not beyond that.

Barrister Shaikh referred to Gen Musharraf's speech after the 
military takeover and claimed that the entire case against his 
client had been developed after seven hours of deliberations.

The speech, meant to win over support, lacked the details. All the 
stories were cooked up later, he contended.

"My action (removal of COAS) was legal and according to the 
Constitution. Their action was illegal, thus a false story to 
implicate innocent persons."

He read out portions of the statements recorded by Zahid Mahmood, 
the retired naval officer who was protocol officer at the prime 
minister's house. He submitted that when according to this 
prosecution witness the deposed prime minister had at 6.15 pm given 
clearance to the plane to land for refueling, how the plane remained 
in the air until 7.48pm? and how did it prove that he (Nawaz) had 
attempted to hijack the plane.

Dwelling into what he considered as contradictions in the statement, 
the defence counsel said at one point the witness had said that the 
army had arrived at the prime minister's house at 6.30pm and had 
taken control of the telephone exchange by 6.45pm, then how could 
the court accept the approver, Aminullah Chaudhry's statement that 
the prime minister had spoken to him 7.05pm.

"How can the prime minister speak to the approver when according to 
the witness, the army had taken over the telephone exchange?" he 
asked claiming that "all the conversations the prosecution has 
mentioned after 6.45pm is all lies and should be rejected."

He also referred to the statement of Brig Javed Iqbal, military 
secretary to Nawaz Sharif and read out portions relating to 
conversation between his client and the defence secretary, Gen 
(retd) Iftekhar, with regard to the removal of Corps Commander Tariq 
Pervez by Gen Pervez Musharraf and consequent decision of Nawaz 
Sharif to replace Gen Musharraf as the COAS.

He claimed that the categorical statement was a deliberate leak by 
the ISPR to show to the armed forces that Gen Musharraf was all 
powerful.

He also dealt with the psychological condition of the witness and 
said if he was a witness to the conversation, why was he not called 
as witness. "How can a person whose attention was focused on looking 
out for Saeed Mehdi, can remember the conversation and cite quotes?" 
submitted Mr Shaikh. Dilating on his claim of a planned coup 
allegedly by the army chief, he submitted that his client was kept 
informed about it by the ISI, which he claimed had interfered with 
elections and was also involved in bugging of telephones, including 
those of judges.

"I (Nawaz) was being informed by official source (Gen Ziauddin) that 
the COAS was planning to overthrow me," submitted Mr Shaikh adding 
that his client's action was calculated.

He submitted that the ISI knew the generals who were conspiring to 
overthrow the government. Referring to the testimony of Brig Javed 
Iqbal, defence counsel pointed out that according to the prosecution 
witness the army guards posted at the prime minister's house had 
started wearing head phones and carrying walkie talkies 4-5 days 
prior to the Oct 12 action, which proved that the coup was planned 
earlier. He submitted that "if witnesses on vital questions 
contradicted each other, jurisprudence says to reject both of them 
and give benefit of doubt to the accused."

If his (Javed) lie is taken as true, even then according to his 
testimony, at 7:00pm he directed the DG CAA to land the plane 
immediately at Karachi. How and on whose orders the plane kept 
flying for another 30 minutes and when landed had a fuel for another 
10 minutes flight time as per prosecution's own story, he asked.

Referring to his testimony regarding incident at PTV station 
Islamabad in which he was involved, Barrister Shaikh said the 
officer who commanded the troops was issued orders for taking over 
the PTV building by his commanding officer.

The command of 111 brigade was changed only few months back and this 
mattered the most as troops of this brigade were the first to move 
and take over key installations and the accused had also made a 
reference to this in his statement before the trial court, stated 
the defence counsel. This was a clear proof of mutiny , he 
submitted.

The defence counsel also dealt with the evidence of Mohammed Asif, 
telephone operator at the prime minister's house in Islamabad. The 
defence counsel pointed out a number of contradictions in his 
statement and said that deposition of this witness was not 
corroborated by any documents.

If the calls were made by the PM to his alleged co-conspirators at 
Karachi why the telephone bill was not produced by the prosecution, 
he pleaded. "If they tried to do so now it will be fabricating the 
document," he said. He pointed out that the witness remembered every 
call of Oct 12 but nothing about 9, 10, 11 or 13.

In this context he said that there had been no record that Nawaz 
Sharif had spoken to Aminullah Chaudhry nor there had been any 
record of what transpired in that so-called conversation.

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20000831
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Nawaz illegally stopped landing of plane, observes CJ
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By Shamim-ur-Rahman

KARACHI, Aug 30: The Chief Justice of the Sindh High Court, Justice 
Saiyed Saeed Ashhad, observed that in view of admission by Nawaz 
Sharif's counsel that on Oct 12 his client had ordered the diversion 
of the PIA flight from Colombo to a destination outside Pakistan, 
approver's testimony in the case had lost its importance.

The chief justice made these observation when Barrister Azizullah 
Shaikh, counsel for the ousted prime minister, submitted before a 
full bench of the high court, comprising Chief Justice Saiyed Saeed 
Ashhad, Justice Sarmad Jalal Osmany and Justice Wahid Bux Brohi, 
hearing appeals in the plane hijacking case, that approver Aminullah 
Chaudhri's statement was not corroborated by other prosecution 
witnesses and should be rejected even without looking into it.

Mr Shaikh submitted that no charge of conspiracy had been proved. He 
also referred to contradiction in the statements of witnesses from 
Islamabad and Karachi and contended that if any order was passed by 
the approver it would not be abetment. "My client never ordered 
blocking of runway by placing fire engines nor he ordered to divert 
the plane to India. These all are fake pleas" argued Barrister 
Shaikh.

He focused on difference in timing of clearance given by Nawaz 
Sharif for the landing of aircraft for refueling and the army take 
over. He submitted that according to prosecutions' own case, army 
took over prime minister's house in Islamabad at 6:45pm and Air 
Traffic Control at Karachi airport at 7: 05pm ."The question remains 
that why aircraft flew for another 43 minutes, who was in control. 
If approver's testimony is to be believed, I have no arguments," he 
submitted.

Mr Shaikh said that the time when the Army had taken over control of 
the ATC, "the coup was in place". Mr Shaikh also tried to build up 
on the contradictions in the statements of telephone operators at 
prime minister house in Islamabad, Aminullah Chaudhri's office and 
in the statement of approver himself.

He submitted that Aminullah in his deposition before the trial court 
had stated that he made several attempts, at least four to contact 
Nawaz Sharif but it was not corroborated by any other witness, 
including telephone operator of the DG CAA and the one at PM House, 
Islamabad. He said if the call was made then the prosecution should 
produce documentary evidence of the calls to support his testimony.

According to Zahid Mehmood's testimony he had no conversation with 
DG CAA on Oct 12, but Aminullah claimed he had a conversation with 
Zahid about fuel position, submitted counsel Shaikh.

Justice Sarmad Jalal Osmany pointed out to Barrister Shaikh that 
Javed Iqbal corroborated approvers' statement.

Mr Shaikh submitted that there was no material evidence to support 
Aminullah's statement that Brigadier Javed Iqbal had asked him to 
contact the then IGP Sindh, Rana Maqbool Ahmed, to park the plane at 
an isolated place at Karachi airport.

All the prosecution witnesses contradict each other on all material 
points, particularly the version of timing given by the witnesses 
from Islamabad and those from Karachi.

The prosecution had thus given two different versions of a single 
incident, contradictory to one another, making the case false and 
fabricated, he argued.

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20000901
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Plane case: approver's version contested
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By Shamim-ur-Rahman

KARACHI, Aug 31: Resuming his arguments in Nawaz Sharif's acquittal 
appeal before a full bench of the Sindh High Court on the fourth 
day, Barrister Azizullah Shaikh pleaded that his client should not 
be penalized on the basis of an approver's unsubstantiated 
utterances.

He focused his arguments on the admissibility and reliability of 
uncorroborated testimony of the approver.

Mr Shaikh, who had earlier submitted that his client was justified 
in ordering the plane, carrying Gen Pervez Musharraf, to be diverted 
outside the country, referred to approver Aminullah Chaudhry's 
testimony and contended that his client had not issued any such 
order. "The prime minister had not issued any order to divert the 
flight to any other destination. The PM had not given directions 
about the closure of the Karachi and Nawabshah airports. Domestic 
flights were directed under my direction," the defence counsel cited 
from Mr Chaudhry's testimony.

It was an outright admission of guilt by the approver, he submitted. 
"In order to save his own neck, this wicked man can say anything 
about any person even under oath", argued Barrister Shaikh 
requesting the court to out rightly reject the evidence of the 
approver.

Referring to Ayub Khuhro's case (PLD 1960) in which it was held that 
evidence of an accomplice was not admissible, Barrister Shaikh 
contended that the same principle was attracted in the appeal before 
the full bench, as no other witness corroborated the testimony of 
Chaudhry, the accused-turned-approver.

The appellant argued that when his client had not given any 
directive about the closure of the Karachi and Nawabshah airports, 
how could he be held responsible for those acts.

Barrister Shaikh argued that when at 6.15pm his client had directed 
the plane to land at Nawabshah, what authority the approver had at 
6.45pm to obstruct this flight.

Referring to lack of response from the pilot for sometime during the 
crucial moments, Mr Shaikh claimed: "There was something going on in 
the cabin and proved that Gen Musharraf was controlling the 
aircraft." He argued that from the evidence of Islamabad witnesses, 
nothing came on the record to corroborate what had transpired 
between the appellant and the approver. "It is only he who has 
attributed a number of directions to the deposed prime minister," he 
submitted.

Referring to the court observations about Mr Sharif's admission, 
Barrister Shaikh said it was based on the statement of Zahid 
Mehmood, the protocol officer, PM house in Islamabad.

According to the statement of Mr Zahid at 5.45pm his client had 
asked him (Zahid) to convey to Shahid Khaqan Abbasi, then PIA 
chairman, to divert the flight to Muscat. He had also stated that at 
6:15pm in reply to Abbasi's reporting shortage of fuel, Mr Sharif 
had ordered diversion of flight to Nawabshah for refueling from 
where it was to be sent to Muscat.

He submitted that this order was the final order passed by the 
accused and what happened after 6:45pm was all concoction of the 
approver because at that time the army had taken control of the 
telephone exchange at the prime minister's house. "Whatever the 
Karachi witness say after 6.45pm is sham evidence. How can the prime 
minister or Zahid speak to Karachi when army had taken over (the 
exchange)," he argued.

Attacking testimony of the approver, the defence counsel pointed at 
what he considered to be material contradictions in his evidence, 
and submitted that at one place the approver had denied any 
investigation or interrogation, but in the same breathe he had 
stated that he had appeared before a board of enquiry.

He also read out from the testimony of another prosecution witness 
Wing Commander Ahmed Farooq, who was secretary to Mr Chaudhry. He 
also cited the pilot's conversation about fuel endurance at 6:45pm 
and said that he (pilot) had mentioned fuel for one hour 15 minutes. 
The defence counsel submitted that according to Mr Farooq's 
evidence, Mr Chaudhry had suggested diverting the plane to Bombay. 
He contended that this prosecution witness had also lied about 
different statements made by him to the police.

Barrister Shaikh had started his attack on the testimony of Syed 
Yusuf Abbas, chief operational officer, CAA, when the bench put off 
the matter till 9am on Friday.

Shahbaz Sharif, Syed Ghous Ali Shah and Shahid Khaqan Abbasi were 
also present in the court.

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20000902 
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Plane case hearing: Vital evidence erased, says defence counsel 
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By Shamim-ur-Rahman

KARACHI, Sept 1: During the course of arguments in Nawaz Sharif's 
appeal against his sentence in the plane case, a controversy 
developed when his counsel submitted before the full bench of the 
Sindh High Court that the prosecution had erased the vital piece of 
evidence with regard to conversation between General Pervez 
Musharraf and Maj Gen Iftikhar on Oct 12, 1999.

Barrister Azizullah Shaikh, pleading the case, claimed that Gen 
Musharraf and not his client had hijacked the plane and accused the 
prosecution of erasing from the flight recorder conversation between 
him (Gen Musharraf) and Maj Gen Iftikhar when flight PK-805 was 
hovering over Karachi.

While referring to the testimony of prosecution witness, Syed Aqeel 
Ahmed, general manager of air traffic control, the defence counsel 
submitted that the prosecution had erased the recording to suppress 
the information about pilot's conversation.

He interpreted that someone else was holding the pilot from landing 
and claimed that he was obeying the orders of Gen Musharraf, who 
allowed the pilot to land only after he (Gen Musharraf) had talked 
to Maj Gen Iftikhar who was present in the ATC tower.

He claimed that the plane was in fact hijacked by Gen Musharraf or 
remained under his control for at least 15 to 20 minutes. The 
evidence to this effect was intentionally not preserved to play with 
the facts, he claimed.

At this stage, on chief justice's inquiry, Special Public Prosecutor 
Barrister Zahoor-ul-Haq informed the Bench that "whatever the pilot 
talks in the cockpit is recorded for half an hour."

He referred to Rule 212 of the Civil Aviation Rules 1994 according 
to which the pilot could only deactivate the black box in case of an 
accident. Since hijacking was an 'incident' and not an 'accident' 
the black box functioned normally, getting reactivated after every 
half an hour, he submitted.

Anjum Jawaid Khan, one of the assistant prosecutors, submitted that 
since it was safe landing and there was no accident, the recording 
was not preserved.

On a query from another member of the Bench, Justice Sarmad Jalal 
Osmany, he submitted that the black box of an aircraft was activated 
only when an accident occurred. This was due to inbuilt automation 
and no eraser of the recorder was done by the prosecution.

Justice Osmany observed that if it got automatically activated then 
the reasoning of the prosecution was plausible because there was no 
emergency. Further explaining the position Advocate General Sindh, 
Raja Qureshi, submitted that at 7:30pm, the previous recording was 
erased thus leaving only 18-minute conversation on record in the 
black box.

He submitted that transcript of the conversation from the ground, 
recorded on the spools, as well as the spools, were produced in the 
trial court. "But not proved" quipped Barrister Aziullah Shaikh.

The chief justice told the defence counsel that "we accept that Maj 
Gen Iftikhar and Gen Musharraf were talking."

The defence counsel argued that the time between 7 pm and the actual 
landing of the aircraft was crucial and claimed that according to 
recorded testimony the pilot had disobeyed the orders of ATC when 
despite being allowed landing at Karachi airport he turned back to 
Nawabshah.

Earlier, in an attempt to highlight what he termed as contradictions 
in the statements of prosecution witnesses, Barrister Shaikh read 
out the evidence of Syed Yousuf Abbas, chief operational officer, 
CAA. He pointed out that the witness had mentioned the name of two 
other officers Anwar-ul-Haq and Farooq (not Wing Commander Farooq) 
who were also present at ATC and radar, but none of them were 
examined by the court.

He submitted that Anwar-ul-Haq was apparently the person who had 
said that flight PK-805 could go to Muscat with the fuel available 
in the aircraft.

Referring to this prosecution witness Barrister Shaikh said that it 
was absurd that ATC would say to the pilot that he could go anywhere 
at his own risk. "If they have justifiable reason to divert the 
flight, then his client (the accused) also had the justifiable 
reason to divert the flight" He also referred to the witness's 
deposition regarding the behaviour of the pilot and said that 
according to PW Yousuf, pilot ignored the directions from the radar 
control and ATC and took a turn in the direction of Nawabshah 
airport for second time. He then suddenly turned to Karachi.

Barrister Shaikh was on his feet when the bench adjourned the matter 
till Tuesday morning.

Shahbaz Sharif, Shahid Khaqan Abbasi and Syed Ghous Ali Shah were 
also produced before the court.

Barrister Shaikh, Barrister Sadia Abbasi, Manzoor A Malik, counsel 
for former IGP Sindh Rana Maqbool, Mir Mohammed Shaikh advocate 
represented the accused while barrister Zahoorul Haq, AG Sindh Raja 
Qureshi, Anjum Jawaid Khan, Abdul Lateef Yousufzai, M.Ilyas Khan and 
Masooda Siraj appeared for the state.

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20000829
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AG explains why Nawaz was hand-cuffed
-------------------------------------------------------------------
Staff Reporter

KARACHI, Aug 28: The state informed the full bench of the Sindh High 
Court that the deposed prime minister, Nawaz Sharif, had been 
handcuffed during shifting from Attock to Karachi because he had 
displayed "hysterical mental state and hostile attitude."

Sindh advocate-general, Raja Qureshi, in compliance to the order of 
the full bench, comprising Chief Justice Saiyed Saeed Ashhad, 
Justice Sarmad Jalal Osmany and Justice Wahid Bux Brohi, placed a 
letter signed by Punjab additional secretary, prisons.

Mr Qureshi acted when the counsel for the appellant, Barrister 
Azizullah Shaikh had drawn the attention of the court towards the 
issue and to the court's orders requiring the state counsel to 
furnish the names of the agencies and officials involved in the 
episode.

The letter was intended to clarify the Punjab government's position 
on the handcuffing, of Nawaz Sharif, Shahbaz Sharif and others 
during their shifting from Attock to Karachi on the night of 12/13 
June on the orders of SHC for appearance in the plane hijacking 
case.

During the process of their shifting the accused, particularly Nawaz 
Sharif, "displayed hysterical mental state and hostile attitude" 
towards the officials deputed for the implementation of the court 
orders for producing the accused before the SHC. "The intentions and 
behaviour created an alarming situation as the very safety of the 
passengers and the aircraft was at complete risk," it said. "In 
order to avoid any fatal and disastrous incident, the accused were 
handcuffed, which was an action well within the legal provisions as 
contained in the Police Rules, 1934, Rule 26-22 and Pakistan Prison 
Rules 652 (for the protection of the prisoner himself and other 
person)."

Justifying the above action the concerned official of the Punjab 
government had maintained that in the normal circumstances such 
measures were not adopted.

The counsel for Nawaz Sharif, Barrister Shaikh asked the Sindh 
advocate general, to place the names of those persons and agencies 
who had handcuffed the deposed prime minister during the flight. 
Barrister Shaikh submitted that the report was incomplete as the 
prosecution had not provided the names of the officials and the 
agencies and the reasons for putting them in chain.

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20000827
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Mly takeover: SC to hear pleas soon
-------------------------------------------------------------------
By Rafaqat Ali

ISLAMABAD, Aug 26: A full bench of the Supreme Court will take up 
from Sept 12, review petitions seeking reversal of its decision of 
validating the military takeover.

 The petitions were filed by Wasim Sajjad, chairman of the suspended 
Senate; Pakistan Bar Council, and the Supreme Court Bar Association.

The SC office has listed the cases which will be heard in the week 
starting from Sept 12, but has not announced the constitution of 
benches yet.

According to rules, a review petition is fixed before the same bench 
which has decided the case. The petitions challenging the military 
takeover were decided by a bench comprising 12 judges.

In its verdict on May 12, the court had validated the military 
takeover on the basis of doctrine of necessity, and observed that 
oligarchy prevailed in the country at the time of the army action.

The PML, in its review petition, sought direction to the chief 
executive for holding fresh election. The petitioners asked the 
court to withdraw the power from the CE to amend the constitution as 
it was against democratic norms and basic principles of the 
constitution.

It maintained that if the removal of the Chief of Army Staff could 
be held invalid for the reason that he had not been issued a show-
cause notice, then the removal of the holders of public office like 
the Senate chairman and speaker of the National Assembly should also 
be held invalid, as they too were removed in the same manner.

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20000827
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Devolution plan, poll reforms discussed: McKinnon, Musharraf meet
-------------------------------------------------------------------
By Nasir Malick

ISLAMABAD, Aug 26: Commonwealth Secretary-General Donald C. McKinnon 
met Chief Executive General Pervez Musharraf to convey 
Commonwealth's "concern" about the delay in announcing a time-frame 
for return to democracy.

"Mr McKinnon conveyed Commonwealth's concern about (the delay in 
announcing the) time-table for return to democracy," the secretary-
general's spokeswoman told Dawn. The 45-minute meeting, which was 
held in a friendly atmosphere, was termed by the spokeswoman 
"intensive, fruitful, and extremely constructive."

Asked whether the secretary-general had asked the CE for a date for 
holding the election, the spokeswoman said: "I cannot comment on 
that. We are not saying anything more, but you can ask the 
secretary-general about this at his (news) conference tomorrow."

"The secretary-general did inform the chief executive that he has 
come to convey C'wealth's concern," she said. The spokeswoman said 
that the secretary-general had discussed several other issues with 
the CE, including electoral reforms and the devolution plan.

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20000828
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McKinnon calls for democracy in 2 years: CE gave no timeframe
-------------------------------------------------------------------
By Nasir Malick

ISLAMABAD, Aug 27: Commonwealth Secretary-General Donald C. McKinnon 
asked the military regime to return to democracy within two years, 
and ruled out Pakistan's going back to the 52-member group in the 
near future.

The Commonwealth expected the government to move towards elections 
as rapidly as possible, and "naturally we hope it would happen 
within the two-year time-frame as set down by the Commonwealth 
leaders," the secretary-general told reporters at the end of his 
two-day visit to Pakistan.

He would present his report to the Commonwealth Ministerial Action 
Group (CWMAG) meeting to be held in New York in two weeks. The CWMAG 
has invited Foreign Minister Abdul Sattar to give the government's 
point of view as well as answer questions from the CWMAG on various 
issues that the secretary-general may raise in his report. The 
secretary-general hinted that the foreign ministers may also meet 
Pakistan politicians and other members of the civil society. After 
reviewing the secretary-general's report, the CWMAG would recommend 
to the foreign ministers whether Pakistan should remain suspended or 
be taken back.

But, the secretary-general said that there was little hope the CWMAG 
would be recommending to the foreign ministers to lift the 
suspension. "Given what they are clearly reading themselves, given 
the precedents of other (CW member) countries who are in the same 
category (under military rule), I would not expect them to recommend 
that Pakistan come back into the Commonwealth fold immediately," Mr 
McKinnon told a questioner.

He dispelled the impression that the Commonwealth attitude towards 
the government had softened. "The attitude of the Commonwealth 
hasn't really changed and there is certainly no softening of our 
stance," he asserted. "We do want to see a rapid return to 
democracy. We do not see any acceptability in the military regime 
and we do want to see rapid return to democracy."

The secretary-general admitted he had failed to get any commitment 
from the CE about the timeframe for returning to democracy. "The 
chief executive did not give any commitment but said he would 
complete his task within the time given by the Supreme Court. He was 
very clear in mind that everything would be in place in that period 
of time."

Asked what the government officials thought about Pakistan's 
expulsion from the Commonwealth, the secretary-general said: 
"Generally, they were critical of the way the Commonwealth has 
treated them but my response was that Commonwealth had no other 
option after the military took over in Pakistan." He, however, said 
that the organization was not looking backwards but forward. "I am 
more concerned about future."

In reply to another question, the secretary-general said the 
international community was concerned because of political and 
economic instability in Pakistan. "People in the region as well as 
other countries do worry if Pakistan becomes a very unstable state," 
he said, adding that Pakistan was active as an economic entity but 
could do much better. "We all have to encourage Pakistan to return 
to democracy."

Mr McKinnon said he had placed a formal request with the government 
for a meeting with Nawaz Sharif but did not receive a reply. He said 
some of the politicians had cast aspersions on the independence of 
the election commission as well as the independence of judiciary.

People, he said, were also concerned about the devolution plan as 
well as the ban on the political parties to participate in the local 
bodies elections. "These are the sort of issues that will be 
addressed when I present my report to the CWMAG," he said.

The secretary-general emphasized that the strength of democracy lay 
in people's support. "You cannot impose a democratic structure upon 
people and expect them to live with it and accept it totally."

Asked what would be the Commonwealth's reaction if the government 
failed to hold elections within two years as demanded by the 
organization, Mr McKinnon said that when the CW heads would meet in 
October next year they would review the situation.

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20000827
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Commonwealth help to be welcomed
-------------------------------------------------------------------
By Hasan Akhtar

ISLAMABAD, Aug 26: Pakistan will welcome the assistance of the 
Commonwealth to its election commission and the role the 
Commonwealth could play to break the "odious nexus between 
corruption and politics in emerging democracies".

This was stated by the Foreign Office spokesman in a statement 
issued following Commonwealth Secretary-General Donald C. McKinnon's 
separate meetings with Chief Executive Pervez Musharraf, President 
Rafiq Tarar, Foreign Minister Abdul Sattar, and others.

The meetings were held in the context of the Supreme Court's May 13 
judgment directing the military government to complete the election 
process and return to the constitutional democratic rule by October 
2002. The foreign minister briefed the secretary-general on "major 
tasks" confronting the government regarding revival of economy, 
accountability, institutional reforms and rebuilding and 
strengthening of institutions on the basis of devolution of power to 
"promote genuine democracy in the country".

Another statement issued by the government after an hour-long 
meeting with Sharifuddin Pirzada, senior adviser to the CE on law, 
foreign affairs and human rights, stated that Mr McKinnon was 
informed about the salient features of the devolution plan, 
accountability mechanism and the time-frame for election and 
delimitation of the constituencies.

The difficulties in the preparation of election process and 
electoral rolls by the election commission by deleting the names of 
"fake voters" were outlined by Mr Pirzada.

Mr Pirzada informed the secretary-general that the army and 
judiciary had their own mechanism of accountability as there was a 
Supreme Judicial Council to deal with such issues. He claimed that 
fundamental rights of people were not suspended.

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20000831
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Court summons Benazir
-------------------------------------------------------------------
By Shujaat Ali Khan

LAHORE, Aug 30: The Lahore High Court has summoned Benazir Bhutto on 
September 8 in a NAB application for transfer of all accountability 
cases against her to the Attock accountability court and ordered 
that a notice in this behalf be advertised in newspapers as service 
by normal means has not been found possible.

Chief Justice Falak Sher, who took up a host of transfer 
applications on Wednesday and fixed Sept 8 as the date of their 
hearing, allowed the National Accountability Bureau to withdraw an 
identical plea in respect of an assets' declaration reference 
against Begum Nusrat Bhutto, who too could not so far be served. The 
application was withdrawn in view of the difficulty being faced by 
the NAB in prosecuting the ailing, self-exiled wife of late premier 
Z. A. Bhutto. The pending application and the reference are impeding 
the hearing of other references.

In the plea for transfer of cases against Ms Bhutto's spouse, Asif 
Ali Zardari, the CJ allowed his counsel, Abdus Sattar Najam, to see 
him and seek instructions from him in Karachi on Sept 3. NAB 
Prosecutor-General Farooq Adam Khan and Deputy Attorney- General 
Naveed Rasool Mirza undertook to ask the Karachi NAB office to 
extend all possible help to facilitate a meeting on the due date, 
though Mr Zardari is being held in judicial custody in one case and 
is serving jail term in another.

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20000902 
-------------------------------------------------------------------
Case against Nusrat Bhutto: hearing on 11th
-------------------------------------------------------------------
Staff Reporter

LAHORE, Sept 1: An accountability court fixed Sept 11 for 
proceedings in a reference against Begum Nusrat Bhutto. The court 
was informed that the NAB had withdrawn its application for transfer 
of the case to Attock. It is alleged that Begum Bhutto possessed 
assets which were disproportionate to her known sources of income. 
The case was initially filed under the Ehtesab Law in 1997.

The court has summoned all the relevant parties in the case on the 
next date of hearing.

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20000830
-------------------------------------------------------------------
FIA not being disbanded, says minister
-------------------------------------------------------------------
Staff Reporter

KARACHI, Aug 29: The FIA is not being disbanded but there is a plan 
to restructure it, federal Interior Minister Moinuddin Haider said 
while talking to newsmen. He confirmed that more than 40 FIA 
officials had been arrested and that further action against them was 
being considered.

The minister added that the government had no immediate plans to 
publish the Hamoodur Rehman Commission Report.

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20000831
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No Israeli technology transfer to Pakistan
-------------------------------------------------------------------
Staff Correspondent

WASHINGTON, Aug 30: The question of any military technology transfer 
from Israel to Pakistan does not at all arise and is totally 
irrelevant in the present circumstances.

This was stated by a Pakistan embassy spokesman when he was asked to 
comment on a mention of Pakistan being one of the possible buyers, 
along with India, China and Russia, of Israeli military technology 
if such technology was developed.

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20000902 
-------------------------------------------------------------------
Probe demanded into MQM charges against ISI
-------------------------------------------------------------------
Staff Correspondent

ISLAMABAD, Sept 1: The Pakistan People's Party has demanded of the 
government to make clear its stand about a recent statement of MQM 
chief Altaf Hussain in which he had accused certain members of Inter 
Services Intelligence (ISI) of acting against the national 
interests. This demand was made by Syed Khurshid Shah, a former 
federal minister of the PPP government and deputy leader of the 
opposition in the National Assembly.

In an open letter addressed to Chief Executive Gen Pervez Musharraf, 
the MQM chief had alleged that some members of the ISI had had been 
acting against the interests of the country by having links with 
RAW. Mr Hussain had also questioned the role of these ISI members in 
the crash of C-130 plane carrying Gen Zia-ul-Haq and other military 
generals, the failure of the an unexplained Operation Black Cobra 
and the cleansing of patriotic elements from the ISI.

Mr Hussain did not name the patriotic elements which he claimed had 
been removed from the ISI. He also claimed that some ISI members had 
been acting against the national interests for a long time in 
exchange for heavy amount of money from RAW and other foreign 
intelligence agencies. The PPP leader said that these allegations 
were serious and needed immediate reply from the military 
government.

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20000827
-------------------------------------------------------------------
JCSC meeting
-------------------------------------------------------------------

RAWALPINDI, Aug 26: Chief Executive General Pervez Musharraf 
presided over a meeting of Joint Chiefs of Staff Committee at Joint 
Staff Headquarters.

The meeting was attended by the services chiefs and senior military 
officers from ministry of defence. During the meeting matters 
related to defence, national security and other professional aspects 
were discussed.

Restructuring of defence wings of Pakistan missions abroad and 
certain other important tri-services matters like merging of 
directorate general military production units were also deliberated 
upon.-APP

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20000829
-------------------------------------------------------------------
Formal talks to resolve PIA, Sabre tiff begin
-------------------------------------------------------------------

KARACHI, Aug 28: Formal talks focusing on disputes between PIA and 
Sabre Group took place between their representatives on August 26 
and 27. Contrary to various previous reports in the press, PIA and 
Sabre did not meet in London in July.

According to PIA, its representatives were in London in late July 
for finalizing the PIA's Defence and counter claim in ICC 
arbitration currently going on in London. Contrary to some recent 
reports in national newspapers, PIA has not settled the dispute with 
the Sabre.

PIA said that in the event of any settlement, it would let the facts 
be known in an appropriate and proper manner and, therefore, 
unofficial reports of settlement are nothing more than rumors based 
upon misinformation. Similarly, according to the airline, the recent 
extraordinary claims as to the sums which an Arbitral Tribunal might 
find Sabre owes to PIA, are without factual or legal basis.

PIA said the talks which took place on August 26 and 27 were 
conducted in the manner to be expected of two commercial 
organizations. These were amicable during which their 
representatives discussed their disputes at length and sought in 
good faith to find a solution thereof.

The differences between PIA and Sabre are substantial, and could not 
be resolved in the present round of discussions. However it was not 
decided when further talks would take place, it was stated.-APP

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20000829
-------------------------------------------------------------------
NRB, interior ministry told to mend fences
-------------------------------------------------------------------
By Ansar Abbasi

ISLAMABAD, Aug 28: The Chief Executive, General Pervez Musharraf, 
asked the interior ministry and the National Reconstruction Bureau 
(NRB) to reconcile their remaining differences pertaining to police 
reforms.

Credible sources told Dawn that the CE, while presiding over a high-
level meeting held at the ministry of interior, said that most of 
the differences between the two sides on different aspects of police 
reforms had already been narrowed down.

The interior minister reportedly told the Chief Executive that the 
interior minister at the center and home minister in the provinces 
should be made the chairman of the national and provincial public 
safety commissions respectively, as proposed by the interior 
ministry's focal group on police reform.

The minister, the sources said, wanted an amendment in the 
devolution plan which envisaged that the national as well as 
provincial commissions would select their respective chairman on a 
rotation basis every quarter. The CE asked the minister and the NRB 
chairman, who was also present in the meeting, to sort out their 
differences through mutual consultation.

The CE complimented the interior minister and his team who in 
coordination with the NRB had succeeded in formulating a 
comprehensive and implementable strategy to achieve this end. 
"Induction and promotions on merit, better facilities, improved pay 
and salary, equipment and a fool-proof system of monitoring and 
overseeing are some of the steps that are being initiated and would 
lead to greatly improving the functioning of the police, " the CE 
was quoted as saying.

The CE directed that the proposed police reforms should be finalized 
and presented before the federal cabinet at an early date for 
approval. He stated that he intended to visit various police 
training institutions to meet the police officials of all grades and 
see the pace of implementation.

The CE also appreciated the steps being taken by the ministry of 
interior and its departments to curb smuggling and said that maximum 
assistance would be given to them in this regard.

Earlier the interior minister briefed the CE on the role and 
functions of the ministry with particular reference to police 
reforms and anti-smuggling measures being taken.

He informed the meeting that after extensive consultations with the 
provinces, a new Police Ordinance was being finalized on the 
recommendations of the focal group and the NRB, to replace the 140-
year-old Police Act of 1861. The minister also informed the meeting 
about the measures being taken to curb smuggling which not only 
resulted in loss of revenue but also damaged local industry, eroded 
respect for law and impeded the tax-paying culture.

The CE, according to the press release, appreciated the interior 
ministry's initiative on arms control. The CE was told that with 
effective measures the display of arms had remarkably come down. The 
CE was also briefed on various measures being taken to create 
sectarian harmony.

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20000828
-------------------------------------------------------------------
GDA chief opposes change in constitution
-------------------------------------------------------------------
Staff Correspondent

RAWALPINDI, Aug 27: Nawabzada Nasrullah Khan warned the government 
against making amendments in the Constitution, saying if any attempt 
was made to tinker with the Constitution it would damage the 
integrity and solidarity of the country internally and externally.

The Nawazada said if the Constitution, drawn up unanimously after a 
long struggle, was dabbled with by the rulers, the new constitution 
would never be made again. Dilating on the history of the 
constitution-making in the country, he warned that nothing would be 
more disastrous than the amendments made in the Constitution. He 
maintained all the four military rulers had one common meeting point 
of sticking to power. He criticized the devolution plan which was 
rehash of the former dictators' schemes of things.

The GDA chief said the credit for crowning the country with the 
Constitution rightly went to Zulfikar Ali Bhutto. However, the 
Nawabzada said the credit equally went to the then opposition for 
giving the unanimous Constitution to the country.

The Nawabzada said without the Constitution, the country was like a 
rudderless ship. In his opinion the country without the Constitution 
was a state of jungle which was without a rule of the law. No 
country without the Constitution could function effectively, he 
stressed. He was critical of the amendments in the Political Parties 
Act and opposed any change in the Constitution.

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20000828
-------------------------------------------------------------------
Officials asked to get data from WAPDA: Understatement of income
-------------------------------------------------------------------
Staff Correspondent

ISLAMABAD, Aug 27: Suspecting understatement of income sources in 
the tax survey forms, the government has asked the tax authorities 
to obtain WAPDA's billing and distribution data on area-wise 
consumption of electricity by industrial and commercial users.

Officials concerned told Dawn that the data would be analyzed to 
determine the understatement of production and sales shown by the 
declarants through tax survey forms. On the basis of this 
understatement, these users have under-declared their incomes, they 
added.

Figures on power consumption, as a yardstick for measuring the 
production and sales made in a given stretch of time by the 
manufacturers and the businesses has already been approved by the 
data analysts working on declarations made through survey forms.

The benchmark has been adopted in view of the World Bank report 
(Energy Services for the World's Poor), launched last month, which 
points out that the un-billed use of electricity in Pakistan has 
caused numerous distortions in the economy.

"We have decided that the electricity should be the major 
determinant in cases of under-declaration by manufacturers and 
large-scale commercial users. If the bills of electricity consumed 
by them are not compatible with the volumes of production and sales, 
declared by them through their returns with the sales tax 
department, and reflected by the tax survey forms, we would ask such 
companies and persons to explain the situation. If they are unable 
to explain, the variation between the supplied and consumed 
quantities would be deemed as 'discrepancy' caused to under-declare 
the actual sales", said a senior data analyst.

When this correspondent drew the attention of the CBR data analysts 
toward the fact that the WAPDA, under a recently adopted practice, 
distributes the consumption not shown by the individual 
domestic/commercial/industrial meters installed in an area, equally 
among the consumers, which would mislead them in determining the 
actual consumption made in a given period by a given consumer. They 
said "good care is being taken of this fact.

We are not going to determine the variations between the billed 
consumption of electricity and the production/sale declared in each 
case where a discrepancy is noticed. It would be only in case of 
large and glaring discrepancy that we would be advising scrutiny in 
this connection."

When asked that the CBR itself had been opposed to the method of 
determining under-declaration on the basis of power consumption in 
view of the variations due to the model, make of machinery and the 
quality of raw materials used in production, they said: "The 
variation caused by these factors is not as misleading as some of 
the tax officials would suggest.

"When data is being analyzed only to catch the large scale under- 
declaration, consumption does provide a fair benchmark for 
judgment."

They pointed out that the input/output ratio was being currently 
applied as determinant for the manufacturing sector and power 
consumption for the value-addition. This method can be applied in 
measuring the large scale under-declaration of sales too. This 
practice, they said, would make the data on manufacture and 
commercial sectors more useful than initially conceived in this 
respect.

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20000827
-------------------------------------------------------------------
EC reviews voters lists verification plan
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, Aug 26: A three-day meeting of Election Commission of 
Pakistan to review arrangements for the verification of voters lists 
to be prepared by Data Registration Authority (NADRA), ended.

The meeting, presided over by Chief Election Commissioner (CEC), was 
attended by all the provincial election commissioners. It reviewed 
matters pertaining to new electoral rolls and holding of local 
bodies elections.

The meeting was informed that NADRA would hand over new voters lists 
by October 15 after verification of names. The Election Commission 
would display the new lists in every constituency and would invite 
objections after which the lists will be finalized. Local bodies 
election would be held under the new voters lists.

The Election Commission was informed that NADRA will start door-to-
door verification of the electoral rolls from September 15.

Under the new rules only Election Commission is empowered to prepare 
voters lists. The Election Commission, however, had made a request 
to NADRA to prepare the lists.

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20000831
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Kalabagh dam plan shelved: Cabinet decides to tap other sources
-------------------------------------------------------------------
By Faraz Hashmi

ISLAMABAD, Aug 30: The government has given up its plan to construct 
the Kalabagh Dam and decided to explore other potential locations, 
including the site at Bhasha, for the construction of new dams, 
official sources said.

The decision to shelve the controversial Kalabagh dam project was 
taken by the federal cabinet. It was understood that the military 
government was unable to arrive at a consensus among the four 
provinces over the construction of the dam.

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20000901
-------------------------------------------------------------------
Changes in top army brass
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, Aug 31: Chief of the Army Staff Gen Pervez Musharraf has 
appointed Lt-Gen Mohammad Yousaf, Corps Commander, Multan, Chief of 
the General Staff in the GHQ, replacing Lt-Gen Aziz, who has been 
made Corps Commander, Lahore, says an ISPR press release. Lt-Gen 
Amjad has been removed as Chairman of the National Accountability 
Bureau and transferred to Multan as Corps Commander.

Lt-Gen Khalid Maqbool, Corps Commander, Multan, has been appointed 
Chairman of the National Accountability Bureau.

Lt-Gen Tahir Ali Qureshi, Corps Commander, Bahawalpur, has been 
posted as Inspector-General, Training and Evaluation, at the General 
Headquarters.

Maj-Gen Javed Hassan has been promoted to the rank of lieutenant-
general and posted as Commandant of the National Defence College. 
Maj-Gen Munir Hafiez has also been promoted to lieutenant-general 
and made Corps Commander, Bahawalpur.

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20000827
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Pakistan expels Indian HC official
-------------------------------------------------------------------
By H.A.

ISLAMABAD, Aug 26: Pakistan decided to expel an Indian High 
Commissioner's official P.C. Dey following the Indian demand on 
Friday in Delhi that Pakistani official Malik Mohammad Rafiq of the 
Pakistan High Commission, should be recalled by Aug 31.

The Foreign Office informed the Indian Deputy High Commissioner here 
of the tit-for-tat action, requiring Dey to leave Islamabad by Sept 
2. The charges against Mr Rafiq and Dey were identical; they were 
accused by respective governments of indulging in spying and in 
activities incompatible with the official status assigned to them 
including spying.

Pakistan had stated that India had expelled 16 officials of its 
mission during the last five years.

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20000902 
-------------------------------------------------------------------
India rejects reports on peak issue
-------------------------------------------------------------------

NEW DELHI, Sept 1: India dismissed reports that a strategic Kashmir 
peak was under Pakistan's occupation despite last summer's conflict 
to evict" intruders" from the Himalayan region.

The defence ministry in New Delhi said reports that the strategic 
Kashmiri peak, known as Point 5353, was under Pakistan's occupation 
was "motivated and harmful to India's security interests. "It is 
clarified that Point 5353 is on the Line of Control and not inside 
the (Kashmiri) territory under India's control," the ministry said 
in a statement. " The latest controversy on the issue appears to be 
motivated and is harmful to India's security interests," it said.-
AFP

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20000827
-------------------------------------------------------------------
Balochistan, NWFP propose names on NFC
-------------------------------------------------------------------
By Sabihuddin Ghausi

KARACHI, Aug 26: The NWFP and Balochistan governments have proposed 
the names of four retired bureaucrats to the federal government for 
representation of their provinces on the reconstituted National 
Finance Commission.

Well placed sources said that the NWFP government has proposed two 
names, one of a retired chief secretary and second of an ex-foreign 
secretary. The Balochistan government too, has proposed names of two 
retired bureaucrats both of whom were chief secretaries of the 
province. One of them had also represented Balochistan on the NFC 
earlier.

The federal government has now to give concurrence to one name from 
each of the four provinces and it is now waiting for nominations on 
the NFC from Sindh and Punjab. The NFC is headed by the federal 
finance minister and has finance ministers of all the four provinces 
on it.

The federal government also nominates one private member from each 
of the four provinces in consultation with the governors. One or 
more experts are also nominated on the NFC. Well placed sources in 
Sindh say that the provincial governor is in process of finalizing a 
list of two or three names in consultation with his advisors who are 
not part of the administration. The officials in the Secretariat 
have no information on the names being proposed as Sindh's private 
member on the NFC. "He would be someone who would go along very well 
with Sindh's finance minister Abdul Hafeez Sheikh" a retired 
bureaucrat said.

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20000829
-------------------------------------------------------------------
Draft law on freedom of information circulated
-------------------------------------------------------------------

KARACHI, Aug 28: Federal Minister for Information and Media 
Development, Javed Jabbar circulated the draft ordinance to provide 
for transparency and freedom of information for eliciting public 
opinion and for formal thirty day public debate.

The Minister presented the draft ordinance at a largely attended 
press conference. He said people belonging to the print and 
electronic media, journalists and those belonging to various 
segments of the society, can send their comments, suggestions and 
proposals and amendments for incorporation in the draft ordinance by 
September 28.

He said the suggestions, proposals and amendments could be sent to 
the Secretary Ministry of Information and Media Development at 
Islamabad or even the comments can be sent on Internet on the 
website of Ministry of Information. 

He hoped that the government will present the amended draft before 
the cabinet in November for consideration and approval. 

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20000830
-------------------------------------------------------------------
Over 2,600 cases referred to CE secretariat: Corrupt officials
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, Aug 29: The Chief Executive Secretariat has so far 
received over 2,600 cases charging federal government's officials 
corruption or misconduct, sources said.

Sources in the CE Secretariat told Dawn that most of these 
government servants were currently facing inquiries while others 
were likely to be charge-sheeted soon. The information about such 
officials is being collected by the CE Secretariat, following orders 
of the Chief Executive Gen Pervez Musharraf. The provincial 
governments have also sent the names of corrupt officials posted in 
the provinces but in reality were servants of the federal 
government.

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20000901
-------------------------------------------------------------------
RBOD water to be drained into sea: Sindh stand upheld
-------------------------------------------------------------------
By Faraz Hashmi

ISLAMABAD, August 31: A major dispute between WAPDA and the Sindh 
government over the Right Bank Outfall Drainage (RBOD), project was 
resolved when the Chief Executive General Pervez Musharraf upheld 
Sindh's point of view, that the drain should be taken to the sea 
instead of putting it in river Indus.

The long outstanding controversy over the RBOD project was resolved 
after a "heated discussion" between representatives from Sindh, 
WAPDA and the Planning Commission at a high-level meeting chaired by 
Chief Executive General Pervez Musharraf, official sources said.


=================================================================== 
BUSINESS & ECONOMY
20000830
-------------------------------------------------------------------
Micro-Finance Ordinance to be amended
-------------------------------------------------------------------
By Jawaid Bokhari

KARACHI, August 29: The Micro-Finance Ordinance 2000, promulgated on 
August 5, is to be amended to facilitate investment by foreign banks 
in the newly created bank of the poor and to make poverty 
alleviation program eligible for 100-150 million dollars from the 
Asian Development Bank.

Sources said the charter of the Khushhal Bank (KB) created though 
the ordinance is expected to be reshaped to safeguard against 
political influence in the sanction and disbursement of loans, 
ensure transparency in its operations, and take care of the 
legitimate interests of the shareholders.

Under diplomatic pressure, the State Bank of Pakistan (SBP) has 
refunded to the foreign banks the compulsory subscription towards 
KB's Rs two billion paid up capital. The investment ratio was fixed 
at 0.2 per cent of each bank's deposits. Foreign banks hold 17 per 
cent of the overall bank deposits. According to one estimate the 
foreign banks' subscription was in the neighborhood of Rs 350 
million, with contribution of bigger banks ranging between Rs 50 to 
60 million.

In a meeting held with foreign bankers, SBP governor Dr Ishrat 
Hussain also advised foreign banks to seek approvals from their head 
offices for taking equity stakes in the Khushhal Bank. If approvals 
were delayed, it was pointed out, the potential sponsor would not 
get the directorship of the bank.

Sources said that the meeting was called, following representations 
made by US and European banks to their diplomatic missions that 
forced subscription for the KB was not justified and was sending 
wrong signals to foreign investors. The western diplomats took up 
the issue with Islamabad. The State Bank responded in a positive 
manner, says a banker.

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20000902 
-------------------------------------------------------------------
CBR amends ST refund rules: Exporters get 60-day facility
-------------------------------------------------------------------
By Ikram Hoti

ISLAMABAD, Sept 1: The facility to avail sales tax refund to 
exporters has been reduced from 90 days to 60 days, the Central 
Board of Revenue announced.

Stringent sales tax stock-verification clauses pertaining to 
verification of stock for claiming refunds have also been removed 
from the sales tax refund rules (STRR) 2000. CBR amended the STRR-
2000 through a notification No SRO 611, dated August 31, 2000. The 
STRR-2000 requires submission of certain documents for 
substantiating refund claims which in future, will not be required 
according to the new amendment. Audit of the stocks will not be as 
stringent as mandatory under the STRR-2000, however, scrutiny of 
stocks and documents only on suspicion of illegal claim of refunds 
will remain mandatory.

The notification says, "sales tax officer-in-charge may, under 
circumstances of exceptional nature and for reasons to be recorded 
in writing, make or cause to be made further scrutiny or 
verification including examination of relevant business records and 
stock taking for determining the genuineness and admissibility of a 
refund claim".

The clause pertaining to scrutiny on suspicion of illegal claim of 
refund has been retained in lieu of removal of the discretionary 
power of the tax official to probe beyond the limit specified under 
the Sales Tax Act, 1990, as the SRO says: the words relating to 
scrutiny of the refund-claim documents (as required under refund 
rules 2000) "to the satisfaction of the officer-in-charge", shall be 
omitted.

The refunded amount is payable in 60 days in case of production of 
all the required documented, whereas, under the amended rules, 50% 
of the claim of payable in case of incomplete submission of the 
case, while remaining 50% is to be paid on submission of the 
complete case.

It reads, provided further that manufacture-cum-exporters who make 
zero rate supplies and also make domestic supplies reflected in 
their monthly return may, ipso facto, deduct the amount of tax, 
payable on their domestic supplies from the amount refund due on 
their zero-rated supplies and claim refund only for the balance 
amount, if any.

The statement showing the position of stocks of major inputs and 
outputs carried over from the previous tax period, additions in such 
stocks, stocks consumed or supplied during such period and stocks in 
balance, if any, shall be submitted by the refund claimants.

The post refund-payment audit for scrutinizing the stocks and other 
supportive documents has also been one away with, under the amended 
refund rules.

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20000902 
-------------------------------------------------------------------
SBP cuts yield on fresh FCY deposits
-------------------------------------------------------------------
By Mohiuddin Aazim

KARACHI, Sept 1: The State Bank further slashed the rates of return 
on fresh foreign currency deposits of the banks by five to ten basis 
points to nip the evil of dollarization in the bud. That 
dollarization has been on the rise is evident from the fact that 
total placement of fresh foreign currency deposits of banks with SBP 
stood at $482.8m on Aug 31 up from only $323.8m at the end of May 
2000.

The $483m FCY deposits form part of foreign exchange reserves of 
$1.22bn. In other words net forex reserves stood around $737m on 
Aug31. 

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20000828
-------------------------------------------------------------------
Large-scale deficit is unsustainable: report
-------------------------------------------------------------------
Staff Correspondent

ISLAMABAD, Aug 27: The deteriorating state of governance has caused 
financial losses to Pakistan to the extent that the country suffered 
a 6.6 percent fiscal deficit on average in the last three years, the 
Finance Ministry has reported to international donors.

"Review of the Economic Situation-1999-2000", compiled by the 
ministry, points out that "this large scale deficit is 
unsustainable". The weak governance has constrained Pakistan's 
economic growth and also contributed to low investor confidence, it 
says. "Governance problems have severely reduced the effectiveness 
of public expenditure, contributed to tax evasion and loan defaults, 
and the documentation of arrears in payment of utility bills. Lack 
of transparency in the government's decision-making, discretionary 
powers enjoyed by political office-holders and civil servants and 
weaknesses in auditing have resulted in high levels of corruption", 
it adds.

Due to these factors, Pakistan's economy has faced serious 
difficulties for the last several years. These were compounded by 
persistent lapses in the implementation of structural reforms. The 
imposition of economic sanctions following the nuclear tests in May 
1998 exposed the long-standing weaknesses and vulnerabilities of 
Pakistan's economy. The real GDP growth slowed down to an average 
3.1 percent during 1996-99, slightly above the country's population 
growth rate. Slow down in economic activity is mainly caused by 
weaker performance of large scale manufacturing, sharp decline in 
real investment, and erratic behaviour of agriculture sector, it 
says.

"The various dimensions of Pakistan's socioeconomic problems can be 
summarized further as declining economic growth; stagnant/declining 
tax-to-GDP ratio causing persistently large fiscal imbalances; 
stagnant exports causing serious balance of payments difficulties; 
declining public sector investment constraining future growth 
potentials; deterioration of physical infrastructure; poor state of 
social indicators; rising poverty and institutional weaknesses 
resulting in poor governance".

The most stubborn problem in Pakistan's macro-economic and 
structural reforms is the long-term failure of fiscal revenues to 
rise as percentage of GDP. Large scale deficits in the 1980s (7.1 
per cent of GDP) continued to persist in 1990s. "The major 
challenges facing the government today include: restoring investor 
confidence; reviving economic activity to achieve higher economic 
growth on a substantial basis; restoring macro-economic stability by 
reducing the budget deficit, current account deficit and maintaining 
price stability; arresting the increasing trends of poverty; 
improving social indicators; and above all, improving governance".

It concedes that there is no quick solution to the problems. 
Effective and sustained implementation of the economic reform 
program will be essential for Pakistan to achieve its development 
objectives including poverty reduction.

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20000828
-------------------------------------------------------------------
IMF short package by year end likely
-------------------------------------------------------------------
By M. Ziauddin

ISLAMABAD, Aug 27: Pakistan is likely to obtain a one-year bail-out 
package amounting to perhaps a little less than a billion dollars 
from the IMF before the end of the current calendar year.

This second but short emergency bail-out package, which is most 
likely to be designed on the lines of the Fund's standby 
arrangement, is reportedly being contemplated by the members of the 
Fund executive board in view of the precarious economic conditions 
Pakistan is facing at present.

Most of the board members, some of whom also belong to the highly 
influential G8 states, are said to have come to the conclusion that 
in case they waited until Pakistan signed the CTBT, delivered on 
terrorism, resumed talks with India and restored democracy, its 
economy would simply collapse causing immense damage to the whole 
region. They also do not seem to feel comfortable with the thought 
of a nuclear country becoming an international defaulter.

While bailing out the country, the Fund and the members with 
decisive votes on its executive board would like Pakistan to deliver 
up on the economic reforms envisaged in the proposed new package by 
perhaps linking the disbursements of quarterly tranches with 
benchmarks to be achieved at the end of each quarter.

The Fund is said to have welcomed the imposition of the general 
sales tax (GST) from July this year, efforts to document the economy 
and unearth undeclared assets and also its recent attempt to make 
the rupee completely convertible. However, the Fund is not likely to 
disburse the second tranche of the new package if the government 
failed by June 30, 2001 to keep the overall fiscal deficit within 
the limits imposed by the current budget.

The emergency package is expected to provide Islamabad the fiscal 
room to negotiate a second round of debt relief from the members of 
Paris and London clubs.

Meanwhile, the government and the IMF-World Bank officials will 
continue to discuss a poverty reduction and growth facility (PRGF) 
amounting to about $2 billion which, if all went well, would perhaps 
be signed by the beginning of the next fiscal year.

The new round of debt relief is also expected to be a short one 
lasting no more than one year designed perhaps to keep Islamabad on 
a tight leash, on the political and economic conditional ties.

In order to be able to achieve a second round in time the government 
needs to keep the IMF program intact at least for one whole year but 
to be able to do this Islamabad would need very badly to improve the 
CBR collection capacity. This seems rather a tall order under the 
obtaining economic situation. The tax revenue for the year projected 
at Rs435.7, in the budget estimates 2000-2001, indicates an increase 
of nearly 40 per cent as compared to the actual collection (minus 
the income from the amnesty and transfers from surcharges to sales 
tax) of last year.

This is seen as an impossible task specially because of the overall 
investment situation as foreign investment has completely dried up 
while the local investors are desperately looking for avenues to 
smuggle their money out of the country for fear of being caught by 
the NAB.

Also, the real estate business has completely collapsed in the 
country and the stock exchanges are no more than simply breathing. 
The proportion of non-performing bank loans have gone up in the 
overall loan portfolio because the percentage of performing loans 
has gone down as the rate of advances for new investment activities 
has come to a grinding halt.

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20000831
-------------------------------------------------------------------
Kuwait reschedules Pakistan's loans 
-------------------------------------------------------------------

ISLAMABAD, Aug 30: Kuwait has extended a $25 million relief to 
Pakistan under the "Debt Financial Arrangements", official sources 
said. They said that a delegation visited Kuwait last week and held 
talks on debt repayment. On August 28 the two sides signed an 
agreement.

The Kuwait Fund has agreed to restore disbursement for the ongoing 
projects immediately on the receipt of agreed amount of down 
payment. It added that it would finance new projects.

After China, Kuwait is the second non-Paris Club country which has 
provided the country relief in debt repayment. Other such countries 
with which negotiation are to be undertaken are Libya, Saudi Arabia, 
UAE and Czech Republic.-APP

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20000902 
-------------------------------------------------------------------
Weekend stock session finishes on weak note
-------------------------------------------------------------------
Staff Reporter

KARACHI, Sept 1: The KSE 100-share index early opened higher and 
steadily rose by about 10 points but in the afternoon session it ran 
into weekend selling and ended modestly lower by 3.89 points at 
1,514.38 points as compared to 1,518.27 a day earlier.

According to previous announcement, the new recomposed KSE 100-share 
index having in its fold 85 per cent of the total market 
capitalization was to make debut on Sept 1, but there was no 
official word on whether or not its introduction has been postponed 
for some technical reasons.

Chemical and pharma shares responded to some positive developments 
on the import front and advent of foreign buying in most of the 
leading MNCs including Abbott, BOC Pakistan and Glaxo-Wellcome.

The advancing issues were led by leading textile and energy shares, 
leading gains among the Ruby Textiles, Yousuf Textiles, Umer 
Fabrics, Shell Pakistan and Pakistan Oil fields rising by one rupee 
to Rs10.00  Other good gainers were led by New Jubilee Insurance, 
Dadex, General Tyre, Singer Pakistan and BOC Pakistan, up by one 
rupee to Rs1.50.

Losses on the other hand were mostly fractional, barring PSO, and 
Philips Shell Pakistan which fell by Rs 2.35 to 4.00 respectively on 
active selling.  Other prominent losers included EFU General 
Insurance, Mian Textiles, Nishat Mills, Millat Tractors, Colgate 
Pakistan and Knoll, falling by one rupee to Rs1.55.

Trading volume rose to 118m shares from the previous 97m shares but 
losers managed to hold a modest edge over the gainers at 94 to 84, 
with 51 shares holding on to the last levels.

The most active list was led by Hub-Power, easy 10 paisa at Rs 17.20 
on 37m shares followed by PTCL, easy 10 paisa at Rs25.50 on 20m 
shares, PSO, off Rs2.50 at Rs173.40 on 16m shares, ICI Pakistan, 
lower 20 paisa at Rs13.30 on 9m shares and Telecard, up 15 paisa at 
Rs21.15 on 5m shares.

Other actives were led by Sui Northern, off 20 paisa on 4.494m 
shares, FFC-Jordan Fertilizer, easy 15 paisa on 3m shares, Engro 
Chemical, steady five paisa on 2.601m shares, WorldCall, lower 50 
paisa on 2.543m shares and KESC, up 20 paisa on 2.337m shares.

DEFAULTER COMPANIES: Active trading was witnessed on this counter 
where 32,500 shares were traded under the lead of Suzuki Motorcycle, 
which fell by 15 paisa at Rs1.50 on 11,000 shares followed by Qayyum 
Textiles, up at Rs1.00 on 5,500 shares and Kohinoor Gojar Khan 
Textiles, unchanged at Rs3.00 on 5,000 shares.

DIVIDEND: Nishat Chunia bonus shares at the rate of 100 per cent, 
Fatima Enterprise, bonus shares at the rate of 100 per cent, 
Packages, cash 42 per cent plus bonus shares at the rate of 10 per 
cent. Market at a glance

TONE: easy,total listed 764, actives 229, inactives 535, plus 84, 
minus 94, unc 51.

KSE 100-SHARE INDEX: previous 1,518.27, Friday's 1,514.38, minus 
3.89 points.

TOP TEN: gainers Lever Brothers Rs43.00, Pakistan Oilfields 10.00, 
Ruby Textiles 4.50, Yousuf Textiles 2.00, Umer Fabrics 1.75.

LOSERS: Shell Pakistan Rs4.00, PSO 2.50, Philips 2.35, Nishat Mills 
1.70, Colgate Pakistan, Knoll 1.50.

TOTAL VOLUME: 117.606m shares.

VOLUME LEADERS: Hub-Power 36.922m, PTCL 20.079m, PSO 15.828m, ICI 
Pakistan 8.508, Telecard 4.772m shares.

Back to the top
=================================================================== 
EDITORIALS & FEATURES
20000827
-------------------------------------------------------------------
General Agha Mohammad Yahya Khan 
-------------------------------------------------------------------
By Ardeshir Cowasjee

"HEY charia," blustered Ali Yahya Khan on the telephone last week, 
"you are nearly dead. When do you intend writing the book on my 
father that you promised to write when he died? I sent you all the 
material you need long ago. Now is the time, with the Hamoodur 
Rahman report having again surfaced."

"Patience," I replied. "History cannot be hurried. By the way, since 
this is open season for many of our famous and infamous generals' 
sons to confess how many well earned millions have been left to them 
by their hard-working fathers - Ejaz-ul-Haq and Humayun Akhtar 
Rahman, to name but two - are you prepared to disclose what you 
inherited?"

Unprintable words floated down the telephone line from Rawalpindi, 
but regaining his inherited sense of humour Ali informed me, "I got 
the better half of London. You know that, you son of a..."

Not even his worst enemy could say of Yahya that he robbed his 
country or its people. The 'Yahya Papers' left by the general will 
not fill a book. But now he allowed himself to be manipulated by 
mediocre megalomaniacs and our 'brilliant' self-serving politicians 
has been written about but not correctly or exhaustively.

The last time I spoke to Yahya was in the mid-summer of 1976. Bhutto 
was in the throes of messing up what was left of our country. Yahya 
was then imprisoned in his own home at 61 Harley Street in 
Rawalpindi. He was standing on a raised plank (his shopping street, 
as he called it), leaning over his compound wall buying vegetables 
from a barrow-man. He waved me down and shouted, "Hey, Cowasjee, you 
got out of Bhutto's jail, now help get me out."

"Difficult," I told him, "but hang on, it won' be long before he 
falls. If he starts jailing men such as me, he has to be weak." We 
exchanged pleasantries, wished each other well, and I drove on.

A few columns, if not a book, are his due. Firstly, on Yahya's role 
on furthering peace in our world. That clever man, Henry Kissinger, 
wrote to Yahya on July 26, 1971 (such men can also gush):

"Dear Mr President,

"I have so many reasons to thank you that it is difficult to know 
where to begin."First of all, there is the vital role that you 
played in establishing communications between us and the People's 
Republic of China. Your initiative and discretion made possible the 
reliable and secure contacts that led to my visit and the 
President's forthcoming trip. You were also well served, Mr 
President, by your representative here. Ambassador Hilaly's part in 
the operation vividly demonstrated why he has compiled so remarkable 
a diplomatic career.

"Then, the skill, tact, and efficiency with which your officials 
carried out my secret mission were nothing short of brilliant. I 
hope you will pass on my deep appreciation, and that of the 
President, to all those who realized this venture, including some of 
your closest advisers, the military personnel who paved our way to 
and from the airport, and the captain and crew of your airplane. My 
colleagues and I were greatly moved by the historic nature of our 
flight and the care and warmth with which we were treated as we 
crossed some of the world's highest mountains.

"Mr President, the deepest thanks go to you who led and orchestrated 
the entire enterprise. I shall always remember your generosity in 
our talks on July 8 when you insisted on setting aside the massive 
problems that your country faces and concentrating instead on my 
visit to Peking. In addition, I enjoyed, and profited from, my too 
brief stay in Pakistan itself, the conversations we had, and the 
gracious Pakistani hospitality.

"Your efforts and those of your colleagues have made indelible 
contributions to my personal experience, the foreign policy 
objectives of the United States, and I believe, the goal of peace in 
the world."

On August 7, 1971, Richard Nixon wrote in his own hand:

"Dear Mr President,

"I have already expressed my official appreciation for your 
assistance in arranging our contacts with the People's Republic of 
China.

"Through this personal note I want you to know that without your 
personal assistance this profound breakthrough in relations between 
the USA and the PRC would never have been accomplished.

"I wish you would extend my personal thanks to your Ambassador in 
Washington and to your associates in Pakistan for their efficiency 
and discretion in handling the very sensitive arrangements.

"Those who want a more peaceful world in the generations to come 
will forever be in your debit.

"Dr Kissinger joins me in expressing our deepest gratitude for the 
historic role you played during this very difficult period."

When Bhutto took over power, Yahya was held in captivity, firstly 
incommunicado in a forest bungalow in Banni and then later in his 
own house. Throughout this period there were many who urged him to 
write, including his son Ali and his nephew Ahmed Ali (who as a 
captain and then a major had been his ADC from April 1966 to 
December 1969). A note from Ahmed Ali's diary in May 1974 records; 
"Are you writing a book these days, Sir?" "No, my son, books are 
written when the chapter is closed. This chapter is still very much 
open."

Two years later, Yahya started making notes. The originals, written 
in his own hand, are safe in a vault. A photocopy was sent to me by 
Ali:

"May 27 1976, 'Yahya Speaks':

"For the last 10 years, I have been urged by many friends to write 
my life history and about important events that have occurred 
because these are so important that future generations were bound to 
benefit by it.

"I, of course, never believed in writing a book, so time passed. It 
was only last night, May 26, that while looking at a television 
programme, 'Azadi ke Mujrim', wherein the last Mughal King's 'trial' 
by a British Military Court was shown. In this TV show, Bahadur Shah 
Zafar who was being tried for 'Gaddari' and how the real facts were 
distorted by lie, fraud, deceit and propaganda and how an imaginary 
young man of the 20th century advocated Bahadur Shah Zafar's case, 
proved that history does not always speak the truth but could be 
distorted by unscrupulous rulers. This made me think, because we 
were passing through a similar period of lies, fraud, deceit and 
propaganda and the distortion of facts and history.

"Am I, who is in a position to inform the nation and the world, 
going to let history be distorted and innocent persons maligned by a 
mean and unscrupulous person?

"So today, I have decided to speak. I have so much to say, right 
from my childhood and throughout my army service, right up to the 
end of 1971 that it would all need many volumes. I have no intention 
of doing this. I will start noting some important events.

"Hitler's propaganda Minister, Dr Josef Goebbels had said - 'tell so 
many lies so many times that people start believing them as truth' 
(or words to that effect). Nobody has been a more faithful student 
of Dr Goebbels than Shora."

'Shora' Who, what, I asked Ali. It was Yahya's nickname for Bhutto. 
In Persian slang it means 'a drooping lower lip', like that of a 
camel.

(To be concluded)

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20000901
-------------------------------------------------------------------
The quality of Pakistani dictatorship
-------------------------------------------------------------------
By Ayaz Amir

Of Pakistani democracy I do not despair. I stopped grieving for it a 
long time ago having realized through personal observation that as a 
nation we have no genius for the thing. The virtue of consultation 
and a tolerance for the vagaries of human nature, the two essential 
prerequisites for democracy, we quite simply lack. We are a nation 
of individual fanatics each of whom wants to convert everyone else, 
at the point of the gun or the bayonet if it comes to that, to his 
point of view. This evangelical strain sits ill with democracy.

What I despair about is Pakistani dictatorship. With our long and 
repeated experience of this phenomenon we should have succeeded in 
producing a workable dictatorial model. But we have done nothing of 
the sort. Each dictatorship begins from scratch. Reinventing the 
wheel is a metaphor or rather cliche worked to death since the 
latest military takeover. But it describes our predicament best. 
Pakistani would-be redeemers do not begin from where the last one 
left off. They begin from the beginning, which is not only a waste 
of time but also productive of boredom. How many times can you watch 
the same performance, the same bumbling steps and the same promises 
to usher in a golden age?

Authoritarianism can be efficient. It can also be corrupt and 
enervating. After all, who fires its engines? Military and civil 
bureaucrats plus a sprinkling of civilian collaborators out hunting 
for jobs. As simple as that. If the quality of this intake is good, 
the results will be good. If not, God help you. How do we fare in 
this regard? Whether earlier times produced a better class of 
mandarins (the myths in this respect being very potent) I cannot 
say. But what I have seen with my own eyes, from the Zia era till 
now, leaves a dispiriting impression behind: higher bureaucrats who 
in any clime would be considered as astounding specimens of human 
incompetence. The official obsessed with rank, protocol and a sense 
of his own importance is an enduring literary type. But the asses we 
manage to produce would take the prize anywhere.

As if civil service asses were not bad enough, military officers who 
should be proud of their uniform and the profession of arms want 
nothing as badly in a military government as to win a civil service 
posting. It should therefore surprise no one if a veritable horde of 
officers have seized supposedly cushy civilian jobs since the 
Musharraf takeover. Obviously, the dictum that all politics is about 
jobs remains true whether democrats or dictators are running the 
show (or the pantomime) in Islamabad.

What is also true is that Pakistan's governing class is knit closely 
together by a sense of shared values: plots, houses, land in 
Bahawalpur and a foreign education for the loved ones, with nothing 
remotely approaching culture leavening this mass. This is one side 
of the picture. The other side is provided by the blurring of any 
distinction that might have existed between public service and 
private gain. In fact, public office has come to be taken as the 
surest way of getting rich. That is why till very recently bright 
lads wanted to get into the civil service, police and customs 
because these jobs brought perks and privileges and the prospect of 
future gain.

There is nothing wrong with wanting to get rich. Did not Comrade 
Deng say 'to be rich is glorious'? The problem is different. 
Wherever the spirit of enterprise flourishes, a different sort of 
individual pursues the paths of wealth and an altogether different 
sort goes in for public service. H. L. Mencken (perhaps the only 
journalist who will ever sup with the gods) says this of the early 
American Republic, "Setting aside religion, (politics) was literally 
the only concern of the people. All men of ability and ambition 
turned to it for self-expression." In the 18th and early 19th 
centuries, politics drew "the best literary talent into its service 
- Franklin, Jefferson and Lincoln may well stand as examples..." A 
far cry from Pakistan where, exceptions apart, third-raters enter 
politics proper while the more talented enter the administration 
(which is also a form of politics) not for any fantasy about self-
expression but simply to get up the ladder of self-advancement.

How do we draw a line in the sand? How do we get the national 
renewal for which the patriotic classes in their cups pine so much? 
It will be hard getting this revolution from the standard-bearers of 
the governing morality which is the true ideology of Pakistan.

And what about the people, whose poverty and helplessness every 
incoming government, with sonorous if repetitive platitudes, 
promises to alleviate and indeed in whose name the skullduggery of 
the Republic is carried on? To say that the people are lost, 
miserable or despondent, some of the favourite adjectives which 
leader writers and columnists deploy when the breast-beating mood 
overtakes them, would be wrong. The drawing room gliterati have only 
to emerge from their shells to see that in the real Pakistan, 
alongside the pain and squalor, there is also a great deal of 
purpose and bustling energy. But, vile contradiction, it is also 
true that the people are not fully in control of their lives. The 
state does not provide for them. It only makes life more difficult 
for them - just as under the Sikhs or the worst Muslim rulers.Its 
true functions the state has abdicated providing neither quality 
education nor quality health care. Nor indeed equal opportunity or 
justice of any kind. But it continues to oppress and thwart the 
people in every aspect of their lives. Just look at the police, an 
extortion agency; the district administration, all pomp and show and 
no purpose; the so-called nation-building departments, hives of 
corruption. It is a fine soup we are in: the country in hock to the 
IMF and other external creditors, the people kicked around at every 
turn by the state. If the people of Pakistan are still cheerful, as 
indeed they are (newspaper prophets of doom notwithstanding) their 
resilience and patience deserve to be applauded.

What about the larger picture? The generals are in control and doing 
what anyone else in their place would do: strengthen and perpetuate 
their hold on the levers of power. The three years' timeframe for 
the conceiving of that mythic animal called 'real democracy' is a 
bit like that thought about which Ghalib said that it was good to 
beguile the heart. Do military saviours surrender their batons or 
robes of office just like that? It has never happened before in 
Pakistan but the nation, even as it tries to adjust itself to over-
priced sugar and a worsening economic situation, is being told to 
suspend disbelief and await the unfolding of this miracle at the 
hands of this military government.

Meanwhile there is the devolution plan which promises to empower the 
grass roots. A long night (or day) of the generals at the top and 
devolution below may seem a contradiction in terms but then this is 
the only show on offer: take it or, if you nurse political 
ambitions, be prepared to be sidelined when this process gets going.

Meanwhile there is also the reported reshuffle underway in the 
army's higher echelons. Much ink is likely to be spilt about the 
likely implications. But never mind. When the rest of the national 
picture remains the same, what does it matter whether a particular 
general goes here or there?

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20000902
-------------------------------------------------------------------
The silly season 
-------------------------------------------------------------------
By Irfan Husain

IT seems that we are once again in the midst of the silly season - a 
season, incidentally, that is longer than Pakistan's interminable 
summer.

As various committees, think tanks and task forces submit their 
reports, the air is full of optimistic slogans and brave words. It 
is also full of hype and hot air. We are told that by 2005, textile 
exports will shoot up to $15 billion from the current $6 billion or 
so. Tourism will miraculously boom. Local body elections will usher 
in a period of "genuine democracy" that has eluded us thus far. The 
problem is that nobody is able or willing to explain satisfactorily 
how these castles in the air are to acquire a solid foundation.

The textile industry is perpetually in a boom-or-bust mode where the 
size of the cotton crop determines whether mills will mint money or 
shut down. When the crop is large, prices fall and the industry 
thrives; when cotton prices shoot up as a result of a poor crop, our 
mills cannot compete internationally because of their inefficiency 
and the higher prices of raw material. How this cycle is to be 
broken remains unclear. For the last fifty years, the tussle between 
growers and textile magnates has continued with each side assuming 
they are in a zero-sum game where one side's gain is equal to the 
other's loss.

As for tourism, fuged about it, as many Americans would put it. As 
fundamentalism and violence grow in our streets, it would be a brave 
foreigner who ventures the risk of enjoying Pakistan's scenic beauty 
and rich historical architecture. According to a foreign expert, out 
of the 400,000 tourist visas issued by our missions abroad last 
year, only 44,000 were to genuine tourists; the rest were given to 
relatives of Pakistanis who are now foreign citizens, and to 
businessmen. This means that on average, less than 4,000 genuine 
tourists visited Pakistan every month. Our neighbors, by contrast, 
earn billions of dollars through tourism.

This summer, I spent three weeks in Spain and France, and traveled 
extensively by road. I was struck by the enormous volume of goods 
being transported across Europe in trucks from virtually every EU 
country. Huge lorries from Holland to Greece lumbered along the wide 
motorways to destinations ranging from Britain to Spain. Similarly, 
tourists in cars bearing a wide range of registration plates 
crisscrossed Europe. Borders seem to exist only in name: we were 
waved through without any official bothering to examine our 
passports and visas.

It is clear that European integration is very much a reality, and 
millions of Europeans are benefiting. Currently, tens of thousands 
of young French men and women are working in Britain, and five 
million Britons have bought holiday homes in France. These are only 
two examples of how vision, cooperation and political will have 
transformed the face of Europe. Ancient animosities and rivalries 
have moved from the battlefields to sports stadia. The free movement 
of goods and people across frontiers has erased bitter memories of 
past wars.

On our subcontinent, we have been unable to make much headway 
despite the creation of the South Asian club, SAARC. Despite 
professions to the contrary, travel between neighbors is an arduous 
affair with visas difficult to come by. Regional tourism is 
virtually non-existent, and trade even more so. Most of the goods 
crossing the Indo-Pak border do so illegally. While this smuggling 
deprives both exchequers of revenue, it does establish the fact that 
there is a demand in each country for the other's goods.

The poisonous legacy of hate and suspicion that separates the two 
subcontinental rivals translates into huge defence and intelligence 
establishments that have a vested interest in fanning the flames of 
mutual animosity. The Kashmir issue has cast its baneful shadow over 
all of South Asia, not allowing the potential gains from regional 
trade and tourism to transform the area. We remain locked in a time 
warp impervious to new realities and ideas. Indeed, if anything, 
attitudes are growing progressively more rigid on both sides.

While India, being a bigger and richer power, may be able to afford 
this madness, Pakistan is bankrupt through trying to maintain some 
kind of arms equilibrium with its large neighbor. We should not 
forget that the Soviet Union finally imploded because of its efforts 
to achieve military parity with the United States. In this day and 
age, the strength of an economy is the true indicator of a nation's 
power, and not the size of its army. A poor nation with pathetically 
low literacy rates simply cannot acquire and maintain the modern 
weapons systems that are needed to mount a credible deterrent. For 
this reason, both India and Pakistan have invested heavily in their 
respective nuclear programs.

Against this backdrop of rising tension and growing militarization, 
it is difficult to see how South Asia will reap the benefits of 
economic cooperation. ASEAN in South-East Asia, NAFTA in North 
America, and the European Union all provide models of successful 
regional collaboration. In all these trading blocs, rivalries and 
enmities have been set aside in the interest of mutual benefit 
through ever-expanding commercial ties. To our misfortune, the gulf 
between India and Pakistan has not yet been bridged by the clear 
advantage accruing to both through a peaceful settlement of their 
differences.

But economic realities may concentrate minds in a way logic and 
common sense have been unable to. The recent cease-fire offered by 
Hizbul Mujahideen in Kashmir was a clear signal sent by Pakistan's 
military rulers. Although this initiative fizzled out, it does hold 
out a ray of hope that the thinking in GHQ may be changing. One 
proposal that has been on the table for a long time needs to be 
dusted off and re-examined: Kashmir can be put on the back-burner 
while trade and travel opened up to improve the political 
environment. After a period of, say, five years, the thorny Kashmir 
dispute can be tackled; during this interim period, relations 
between the two countries will hopefully improve, and some amicable 
solution found.

It is a fact that while governments come and go, personalities 
change and economies rise and fall, geography is one constant nobody 
can alter. Like it or not, Pakistan and India are neighbors, and it 
is high time they realized it.


===================================================================
SPORTS
20000828
-------------------------------------------------------------------
South Africa clinch Singapore trophy: Pakistan go down by 93 runs
-------------------------------------------------------------------

SINGAPORE, Aug 27: A whirlwind partnership by Gary Kirsten and Nicky 
Boje paved the way for a 93-run South African victory over Pakistan 
in the final of the 2000 Singapore Challenge cricket tournament.

South Africa made 197 for seven at the end of their 35 overs, with a 
further 17 runs added under the Duckworth-Lewis system for a rain 
disrupted innings, leaving Pakistan a target of 215. But the task 
was beyond Pakistan who were unable to recover from a middle-order 
collapse and were all out for 121 in the 29th over.

Boje, the Man-of-the-Match, was promoted up the order to join 
Kirsten when South Africa were struggling at 29 for two after 10 
overs, and desperate to revive their game plan of a brisk start. 
They took the score to 70 off 15 overs when rain forced a three-hour 
delay after which the pair carried on where they had left off.

Boje cut and pulled with authority to reach his half century off 36 
deliveries with six fours and a six. Kirsten reached his third 50 of 
the tournament off 57 balls with five fours. The pair of left-
handers put on 41 runs in their first five overs together, before a 
two-hour rain interruption, then returned to the wicket to continue 
their no-holds barred attack.

When Azhar Mahmood bowled Kirsten to break the partnership, Kirsten 
and Boje had put on 97 runs in 82 balls and lifted the run rate to 
nearly 5.5.

Kirsten, the Man-of-the-Series, scored 62 off 77 balls, while Boje 
who was out soon after faced 48 balls for his 54 which included six 
fours and a six.

Daryll Cullinan, who had been out of sorts in the early matches in 
the series, found form at the right time for South Africa and was 
unbeaten on 31 from 23 balls at the end.

The batsmen were particularly heavy on Abdur Razzaq and Azhar 
Mahmood. Although Razzaq did pick up two wickets he went for 54 in 
his seven overs and Azhar took one for 48. Fielding lapses hurt 
Pakistan, with Cullinan and Boje both surviving chances.

On a slow outfield because of the rain, 215 runs at over six an over 
was always going to be difficult for Pakistan. Trying to force the 
pace cost early wickets with Imran Nazir out in the second over, 
Yousuf Youhana in the sixth and Salim Elahi in the 10th.

Saeed Anwar and Ijaz Ahmed put on 39 for the fourth wicket before 
Saeed was run out for 24, starting a middle-order collapse in which 
three wickets fell in the space of 11 balls for just two runs, and 
Pakistan never recovered.

"In the past few years we've played badly in finals, so it's nice to 
play well when it really counts," South African captain Shaun 
Pollock said, singling out the Kirsten-Boje partnership as crucial 
to their win. "We decided that it was easier to score up front, 
that's why Nicky Boje was promoted up the order and he played 
superbly well with Gary. And once the rain interruption was over the 
guys carried on ... and scored at a great rate."

Pakistan captain Waqar Younis was left to regret a match of missed 
opportunities. "The fielding really let us down. It wasn't the 
(South African) runs it was the dropped catches," he said. 
AFP/Reuters

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20000829
-------------------------------------------------------------------
Waqar blames poor fielding for defeat
-------------------------------------------------------------------
Sports Correspondent

LAHORE, Aug 28: The Pakistan cricket team captain Waqar Younis 
blamed poor fielding as reason for losing to South Africa in the 
final of tri-nation cricket tournament at Singapore. However, the 
team coach Javed Miandad cited other reasons for the debacle in the 
final which Pakistan lost by 93 runs.

Talking to reporters at the Lahore airport on arrival from 
Singapore, Waqar Younis said that had Pakistani fielders not dropped 
at least four catches, the result would have been different.

Miandad said that change in number of overs due to rains and the 
rule which raised the target from 197 to 215 were the reasons which 
went against Pakistan. He said that Pakistan was compelled to keep 
Saeed Anwar in fielding for a specific number of overs, despite 
injury, because it only made him eligible to bat for the team. He 
said that the restriction of circle which had been reduced from 15 
overs to 10 due to rain also affected the performance of the 
Pakistani team.

He negated the impression that the change in middle order had 
damaged the performance of the batting department. These were 
tactics and some time proved correct and some time wrong, he added. 
Miandad said that overall the performance of the team was good.

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20000830
-------------------------------------------------------------------
3 cricketers to face one-man inquiry body
-------------------------------------------------------------------
Sports Reporter

KARACHI, Aug 29: Three Pakistan cricketers have been directed to 
appear before a one-man inquiry commission on Wednesday, highly 
placed sources said.

Shahid Afridi, Hasan Raza and Atiq-uz-Zaman, accused of breaching 
the players' code of conduct on the eve of team's departure for 
Singapore, are being provided with an opportunity to clarify their 
positions.

Brig (retd) Mohammad Nasir, who is the manager of the team, has been 
appointed as the inquiry officer by the chairman of the Pakistan 
Cricket Board (PCB) Lt Gen Tauqir Zia. After examining the 
cricketers, Nasir will submit a detailed report on the basis of 
which disciplinary action would be taken against the three players. 
The three players are accused of having invited girls to their 
rooms. 

Highly placed sources said Brig Nasir was assigned the job by the 
PCB chairman on Monday. Brig Nasir is reported to have carried out 
preliminary investigations.

Javed Miandad, who was initially asked to prepare the report, will 
not be submitting the document after he succeeded in convincing the 
PCB chairman that his job was confined to the playing field. On 
Miandad's persuasion Brig Nasir has been appointed the inquiry 
officer since the off-the-field conduct of the players fell under 
his jurisdiction.

Ironically, when this correspondent contacted Yawar Saeed, director 
of the PCB instead of giving a clear picture, he said: "I have been 
told by the PCB chairman to get the manager's report on the 
incident. I have not been given any deadline." Nevertheless, hours 
later, it was confirmed that Yawar Saeed was trying to hide the 
facts. The point to be emphasized is that if a highly responsible 
PCB official is not willing to release day-to-day news then who 
will?

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20000831
-------------------------------------------------------------------
Players deny incident ever happened
-------------------------------------------------------------------
Sports Reporter

KARACHI, Aug 30: The three Pakistan cricketers pleaded not guilty 
when they appeared before a one-man inquiry commission of Brig 
(retd) Mohammad Nasir, insiders said.

Shahid Afridi, Hasan Raza and Atiq-uz-Zaman, who have been accused 
of breaching players' code of conduct, recorded their statements at 
the residence of the Pakistan team coach. Although the details of 
the meetings were not known, the trio asserted the incident never 
happened. They also denied calling girls and claimed they came to 
know about the `fabricated' press reports when they were in 
Singapore for the triangular competition.

Brig Nasir, according to sources, has also recorded the statements 
of the employers of the hotel where the incident is alleged to have 
taken place. Brig Nasir is expected to submit his report next week 
to the PCB chairman Lt Gen Tauqir Zia.

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20000901
-------------------------------------------------------------------
Pakistan beat New Zealand by solitary goal
-------------------------------------------------------------------

KARACHI, Aug 31: Pakistan's Sydney Olympic bound hockey squad, took 
a 1-0 lead in four-match series when they beat New Zealand by a 
solitary goal under heavy downpour in the second Test played in 
lights at Auckland.

Sohail Abbas struck the match winning goal just before the interval 
by converting second short corner, manager Islahuddin informed APP 
on phone from New Zealand.

The hosts held Pakistan to 1-1 draw in the opening Test also played 
in flood lights. Captain and goal-keeper Ahmed Alam, who recovered 
from minor injury, stood under the bar through the entire match, he 
said.

Pakistan forced three short corners, two in first and just one in 
the second session. Pakistan will play two more test matches on Sept 
2 and 3 before flying back to Sydney on Sept 4 to launch their 
training program on Olympic pitch on Sept 5. Team manager said he 
was fully satisfied with the build-up of the team for the Olympics.-
APP

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